Department of State bulletin

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Vol. XXX, No. 771
April 5, 1954

INTERNATIONAL EDUCATIONAL EXCHANGE PRO-
GRAM • 12th Semiannual Report 499

ALLIED EFFORTS TO RESTORE FREEDOM OF

MOVEMENT IN GERMANY • Texts of Correspond-
ence 508

JAPAN'S PROGRESS AND PROSPECTS • by Deputy

Under Secretary Murphy 513

MUTUAL DEFENSE ASSISTANCE AGREEMENT

WITH JAPAN 518

INTERNATIONAL COPYRIGHT PROTECTION • State.

ment by Thoraten V. Kalijarvi 530

For index see inside back cover

Boston Public Library
Superintendpnt of Documents

APR 28 1954

^ Qjefia^i^/^e^t o/ S/Ll^e L)lJilGllIl

Vol.. XXX, No. 771 • PcBucATioN 5420
April 5, 1954

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

The Department oj State BULLETIN,
a tceekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relatione and on the tcork of the De-
partment of State and the Foreign
Service. The BULLETIN includes
selected press releases on foreign pol-
icy, issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
interruitioruil affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral intertiational interest.

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

The International Educational Exchange Program

AN APPROACH TO A PEACEFUL WORLD ON A PERSON-TO-PERSON BASIS

Following is the text of the IZth semianmud
report of the International Educational Exchange
Program of the Department of State, which was
transmitted to the Congress on March 22}

LETTER OF TRANSMITTAL

To: The Honorable the President of the Senate
The Honorable the Speaker of the House of
Representatives
Sirs:

Pursuant to Section 1008 of Public Law 402
(80th Congress), I transmit herewith the 12th
semiannual report of the International Educa-
tional Exchange Program of the Department of
State. This report reviews exchange activities
carried out under authority of this act during
the period July 1-December 31, 1953.

Previouslj', reports on educational exchange ac-
tivities were included in the semiannual reports
of the former International Information Admin-
istration. However, under President Eisenhow-
er's Reorganization Plan No. 8,^ effective August
1, 1953, international educational exchange activ-
ities and information activities were separated.
The educational exchange program was retained
in the Department of State and an independent
agency created to administer information activi-
ties under the act.

This report on educational exchange activities
administered under the act is therefore submitted
separately by the Department of State.
Very truly yours,

John Foster Dulles

Secretary of State
The Department ov State,

March 15, 195h

' Also available as Department of State publication 5409.
' For text, see Bulleh-in of June 15, 1953, p. 854.

FOREWORD

The International Educational Exchange Pro-
gram was born of a faith and a conviction.

It was faith in the democratic system, in the
American way of life. It was conviction that the
sharing of ideas through direct personal experi-
ence would strengthen genuine understanding and
mutual respect basic to the security of the free
world.

Today that security is threatened. The Com-
munists are trying to convince the peoples of the
world that international communism, not de-
mocracy, is the answer to their problems. Other
anti-American forces are sowing mistrust of our
motives.

The Educational Exchange Program has
proved that it is a sound antidote. It is building
up a receptive climate of public opinion overseas.
In this atmosphere our actions, our motives, and
our policies can be correctly understood.

As now constituted, the program has its leg-
islative roots in the Smith-Mundt Act, the Ful-
briglit Act, and a number of other pieces of special
legislation.

An integral part of the Department of State,
the program receives special policy guidance
which makes it immediately responsive to sensi-
tive world conditions. Through the conduct of
this program the Department is able to carry out
its leadership role, as desired by the Congress, in
coordinating the exchange efforts of other U.S.
Government and private agencies to furtlier for-
eign policy objectives.

SCOPE OF PROGRAM

In the past year the International Educational
Exchange Program arranged for 7,121 exchanges
with over 70 countries of the free world.

Aprif 5, 1954

499

Two-thirds of this total was a carefully selected
group of people from other countries who came
to the United States to study, to teach, to lecture,
to carry on specialized research, or to gain actual
work experience.

They were young people, such as the deputy
chief of the Legislative Keference Service of the
Govermnent of India, who this year completed
work on his Ph.D. in public adniinistration at
American University. They were teachers, like
the director for a number of rural schools in Cuba,
who observed educational methods in our schools.
Another group included current leaders of
thought and opinion— newsmen, government offi-
cials, membei-s of national legislative bodies, labor
and business leaders, and social workei-s. Be-
cause of duties back home, many of this latter
group stay in the United States only a brief
period, usually not more than 3 months.

The other third of the exchanges were Amer-
icans who went abroad to study, teach, lecture,
or do research. They represented all of our 48
States. Some are holding conferences on Amer-
ican studies or teaching English as a foreign lan-
guage to meet the growing interest overseas in
American life. Others are specialists, like the
Labor Commissioner of the State of Wyoming or
the Chief Justice of the State of Nebraska, who
are helping to correct many distorted conceptions
of American life, not only in professional and
academic circles but among workers in the fac-
tories, farms, and mines.

Many of these exchanges were planned within
the framework of projects to meet special situa-
tions in different countries. For example, in Korea
a group of American educators is helping Korean
teachers and school administrators to reestablish
primary and secondary schools with an up-to-date
curriculum. Groups of newsmen from Nato coun-
tries are .seeing our defense eiforts at firsthand,
within the setting of our national life.

Efforts are made to keep the exchange program
flexible enough to meet other immediate needs.
For example, shortly after the President's pro-
posal to the United Nations on the peaceful uses
of atomic energy, the Department developed a
panel of top-flight experts who will be available
to lecture overseas on American uses of atomic
energy for peaceful and humane purposes.

In addition, 384 impressionable young people
in 12 countries were given scholarships to study in
American-sponsored schools overseas. These
institutions, like the American Farm School in
Greece and the American Univei-sity of Beirut,
have long been recognized as a bulwark of Ameri-
can influence in the Near East.

Twenty-two American-sponsored schools in the
other American Republics were given small cash
grants, and 208 similar schools received profes-
sional guidance and other services to help them to
maintain American standards of teaching and
school administration. These schools, recently

praised so highly by Dr. Milton Eisenhower, have
educated over a million Latin American children.
As the American Ambassador to Guatemala
pointed out, they are "training a generation of
young people who will, through their education,
have achieved strong ties with and a basic under-
standing of the United States."

The Department also helped 311 other exchange
projects. Through these projects more than 1,886
exchanges were arranged which furthered the De-
partment's objectives at no cost to the United
States Government.

Expenditures under the Smith-Mundt Act for
exchanges were relatively small, $8,011,043, con-
sidering the scope of the program. However,
without these funds the Department would have
been unable to make full use of approximately $8
million in private support or $9 million in foreign
currency available under the Fulbright Act.

RESULTS OF PROGRAM

It must be assumed that the full results of ex-
change experience are a matter of cumulative im-
pact. All exchanges also have an immediate
result. There was, for example, the Japanese
legislator who told his countrymen :

I realized from this trip that the essential difference and
disagreement between Communist Russia and the United
States is that the former represents a way of life by
compulsion and the latter a way of life which is based on
and derives its strength from voluntary processes. The
American way is Just and proper for human society.

Or as a European specialist put it:

I had always been afraid of Russian imperialism. Not
however until I visited your country did I learn to believe
in the United States as a supporter of all the good and
culture-supporting ideas. If you invite people from other
countries to visit the U.S.A., you can make your passive
friend your active ally.

Such examples are almost endless. In Copen-
hagen a returned Danish teacher. Otto Breinholt,
is conducting evening classes for adults entitled
"U.S.A., Community and People" and "Aspects
of Life Expressed in American Literature."

A Latin American newspaper editor wrote over
80 feature stories, highly favorable, about his expe-
rience in the United States. They were given
front page space and followed up by a lecture
tour.

Thorarinn Thorarinsson, editor of a daily paper
in Iceland, has launched a one-man campaign to
explain the necessity for American troops in Ice-
land. He reminds his readers that as early as
1920 Lenin had noted the importance of Iceland
in time of war. He has stated, "All Communist
actions indicate that they intend to conquer the
world and dominate it." He refuted charges of
"imperialism" in the United States. He told his
countrymen that, by not cooperating in the build-

500

Department of State Bulletin

ing of free world defenses, they were working
against the prospect of peace.

On the other side of the world, a Far Eastern
grantee is making it his business to place publica-
tions and other material about the United States
in the schools in his area. And this is an area
where the Communists are especially active.

Tlie program is also strengthening our ties with
the free world by sharing our laiowledge and
building up skills which are of mutual benefit to
the United States and other countries. Bai Ma-
tabai Plang, a Moro princess from tlie Philippines
who studied social work in the United states,
established an Institute of Technology in Min-
danao modeled upon courses at Berea College in
Kentucky.

An Indian who studied industrial relations in
the United States was solely responsible for or-
ganizing the Division of Industrial Relations at
the Tata Institute in Bombay.

Dr. Emmanuel H. Phuoc, leading dental sur-
geon in Indochina, organized a schedule of United
States information films in his spare time. This
particular former visitor to the United States
keeps up his membership in the American Dental
Association and has organized a similar group in
Viet-Nam as well as a free medical and dental
clinic where American methods have been intro-
duced.

A husband and wife team. Emir Birjandi and
his wife Parvin, studied at the University of Wis-
consin. They took what they learned back to their
native village of Tabas, Iran, with such good re-
sults that Tabas is becoming the pattern of a
widely extended Iranian village improvement
system.^

Americans who have gone abroad under the In-
ternational Educational Exchange Program have
accepted seriously the responsibilities of the trust
placed in them.

Richard J. Couglilin, an exchange student in
Tliailand, wrote that he had "visited about 125
different homes, both Thai and Chinese ... In
most cases I was the first Westerner, and certainly
the first American, to have entered their homes.
My reception was in all instances exceptionally
friendly. ... I would judge that this was one
of the few ways these people had to get the Ameri-
can point of view."

In Austria an American teacher, Harold
Grothen, gave 103 lectures on American education
and life in a small town to 4,700 people in -50 dif-
ferent towns and villages — and this in addition
to his regular classroom teaching.

American Negro sociologist Joseph H. Douglass
was able, by his own example and by liis talks in
Egypt, to clear up many false ideas about the

" For an account of their work, see "Rural DevelopineiU
in Iran," Department of State Field Reporter, January-
February 1953 (Department of State publication 4874),
p. Vi.

position of his race in the United States. He told
his audience that our country "is truly one in
which countless individuals . . . Negi"o, Catholic,
Jew, Oriental . . . through hard work and appli-
cation can and do achieve happiness and relative
measures of success and that, despite attitudes to
the contrary, bonds of friendship extend across
racial and cultural lines." '

Greek newsmen were so interested in Dean Ken-
neth Olson's workshops to help them with their
problems that the group had to meet in the great
Parliament Hall in Athens to accommodate all
who wished to take part.'

No wonder indeed that a survey by Time maga-
zine revealed that cabinet ministers in 54 countries
considered the exchange program the most effec-
tive medium yet devised for the free exchange of
ideas.

Backing up these individual examples are scien-
tific evaluation studies which show that the ex-
change experience helps foreign grantees to

— lose unrealistic or stereotyped views of Amer-
ican life;

— obtain a more favorable view of the motives
behind American foreign policy;

— report more favorably and actively, on their
return, to their countrymen.

Ajnericans gain and share with their fellow
citizens

— wider understanding of the political, eco-
nomic, and cultural life of other countries;

— increased knowledge and appreciation of our
own international problems;

— extensive professional benefit.

These findings were supported by the report of
the Hickenlooper subcommittee,* which stated
that—

Exchangees often are or may become prominent in gov-
ernment, business and the professions and their potential
impact on attitudes toward tliis country is considerable.
The program enjoys a high prestige both at home and
abroad and is therefore able to attract the voluntary
participation of leading citizens.

DEVELOPMENT AND COORDINATION OF
PROGRAMS

Foreign Service posts throughout the world
alert the Department as to the size and character
of programs needed to meet particular situations.
Eacli post coordinates its exchange plans with
similar efforts developed by public and private
groups for that country. These recommendations

'Ibid., November-December 1953 (Department of State

publication 5232), p. 8.

'Ibid.. September-October 19.53 (Department of State
publication 5102), p. 22.

' Overseas Information Proj/ramJi of the United States,
S. Kept. 406, 83d Cong., 1st sess.

April 5, 1954

501

are then reviewed bj; the International Educa-
tional Exchange Service in consultation with the
appropriate political bureaus of the Department.

The U.S. Advisory Commission on Educational
Exchange provides overall policy advice and
guidance.

Exchange proposals from binational U.S. educa-
tional foundations and commissions in countries
participating in the progi-am authorized by the
Fulbright Act are reviewed by both the Depart-
ment and the Board of Foreign Scholarships ap-
pointed by the President.

A constant effort is also made in this country to
coordinate exchanges with other U.S. Government
and private programs. The Department was in-
strumental, for example, in setting up an Inter-
Agency Committee on Training Programs and
Exchange of Persons. It has set up a prograni of
joint instruction for overseas posts, standardiza-
tion of allowances, and cooperative insurance
programs.

Other measures initiated by the Department to
insure teamwork and prevent duplication include
an orientation and English language training pro-
gram for certain incoming grantees of three major
agencies — State, the Foreign Operations Adminis-
tration, and Defense.

The Department has established a clearing
house of information on all U.S. Government
grantees. Working with the Institute of Inter-
national Education, a similar clearinghouse estab-
lished by the institute under a grant from the Ford
Foundation, has been set up for exchanges under
private auspices.

Coordination is maintained also between the ex-
change activities of the Department and the inter-
national information activities of the United
States Information Agency. Procedures have
been established for exchange of information in
Washington. Overseas coordination is assured
since the same staffs operate both programs. ( The
Department utilizes overseas personnel of Usia
through a contractual arrangement with that
Agency.)

COOPERATION WITH OTHER EXCHANGE
PROGRAMS

The Department works closely with reputable
private groups here and abroad and with interna-
tional organizations and foreign governments in
carrying out projects sponsored by them that con-
tribute to our Government's exchange objectives.

Typical of such projects was the placement in
U.S. Government agencies and supervision of 92
United Nations fellows from 36 countries. The
major subjects studied were economic develop-
ment, public administration, and social welfare.

The Department cooperated with such groups
as the American Field Service and the National

4-H Club Foundation in enabling 270 American
and foreign youths to experience life on farms and
in communities of each other's countries.'

The Massachusetts Institute of Technology con-
tinued to receive help from the Department in its
Foreign Student Summer project, under which 60
technical students from 35 countries were brought
to the United States to study at Mix during the
summer months.

The Department gave assistance in publicizing
and facilitating the tours of American artistic
groups such as the American National Ballet
Theatre.

One of the Department's major activities in
stimulating private exchanges comes under section
201 of the Smith-Mundt Act. This section eases
visa difficulties for foreign nationals coming to the
United States for bona fide educational purposes.

For example, before the act was passed, it would
have been (lifficult to carry out the broad kind
of excliange activity envisioned by the Eisenhower
Fellowship Foundation. The before and after
story of the trainee program sponsored by the
American-Scandinavian Foundation illustrates
this point. Previously, it was difficult for a
trainee to obtain a visa that would permit on-
the-job training and observation. In addition,
each trainee had to provide financial and other
personal guaranties. In the face of this discour-
agement, tlie program came to standstill. After
the act was i)assed, the foundation was able to
provide the necessary guaranties for all trainees
it sponsored and to qualify as a ])rogram that
would contribute to (lie objectives of the act. To-
day the foundation is bringing in over 500 trainees
annually for training in American industry and
commerce.

By approving these progi'ams, the Department
helps American industrial, educational, medical,
and other gi'oups to bring foreign nationals to
this country for limited periods of time. Since
July 1, 1953, 195 exchange programs were desig-
nated or amended, bringing to 1,702 the total num-
ber of programs under which foreign nationals
may be currently admitted to this country for
exchange purposes. Hospitals and clinics are the
major users of this service at the present time,
with educational institutions and industrial con-
cerns next in order.

Another exchange activity, involving no U.S.
Government funds, is the assignment of American
specialists and the performance of technical serv-
ices under sections 301 and 402 of the Smith-
Mundt Act. During the past 6 months a total of
$282,000 was advanced by Japan, Spain, Australia,
Thailand, Singapore, and Saudi Arabia for carry-
ing out sucli services.

A bacteriologist and sanitary engineer was as-
signed to Japan from the U.S. Department of
Health, Education, and Welfare. He will advise

' Field Reporter, .January-February 1953 (Department
of State pubUcation 4874), p. 22.

502

Deparfmenf of State Bulletin

on sanitary measures in the processing and mar-
keting of frozen clams for export. At the request
of the Government of Singapore, the Depart-
ment arranged for the U.S. Bureau of Recla-
mation to test soil samples. The Department of
Agriculture produced a quantity of guayule seeds
for Spain. Continued assistance was provided
Australia and Thailand in developing the Snowy
Mountains Hydroelectric project and the Chao
Phy River Dam. In connection with the latter
project, arrangements were made to train 10 Aus-
tralian and 2 Thai engineers.

THE PROGRAM AROUND THE WORLD

In Europe

The friendship between the United States and
the nations of free Europe is well established.
There are, however, in all of the European coun-
tries, and particularly in several, groups either
hostile to the United States or ignorant of Amer-
can ways. The Kremlin makes a constant effort to
use these groups in its efforts to divide the United
States and its European allies.

Since July 1, 1953, the Department has brought
3,738 Europeans to this country and has assisted
private groups in bringing over an additional 466.

These exchanges include, for example, such in-
dividuals as the General Secretary of the Central
Federation of Finnish Trade Unions, the Presi-
dent of the Swedish Social-Democratic Youth
Federation, and such other key figures as influen-
tial newsmen, members of national legislatures,
and government officials.

The carrying out of exchanges within the
framework of projects to accomplish specific ob-
jectives has been particularly effective in Europe.

The influence of groups of Nato newsmen who
have returned home show this. For example, they
have written favorable articles appearing in over
150 major European newspapers, with a circula-
tion of several million readers. Their accounts
have been carried by many European radio and
television networks, wire services, and magazines.

Typical of a project designed for a specific coun-
try was the visit of nine Cooperative Community
Action Teams from Germany. These teams, com-
posed of community leaders from German towns,
visited comparable American communities, par-
ticipating in community activities and interview-
ing community officials.^

Upon their return home these teams found
many ways to explain the United States to their
fellow citizens. For example, members of a team
from Muenster, Germany, since their return, have
given 75 talks to their townsmen. They have pro-
posed plans for the administrative reorganization

'Ibid., .Tuly-August 1953 (Department of State pub-
lication 5106), p. 18.

of the city along the lines of American advances
in city planning and administration. In addi-
tion, they have recommended the inclusion of
American studies in the schools and the estab-
lishment of a Muenster-American Circle. The
purpose of the latter will be to maintain continu-
ing contacts between Muenster and the American
cities visited by the team.

Rich dividends have also resulted from the
Conferences un American Studies held in Nor-
way, the Netherlands, and the United Kingdom.
These meetings centered around such themes as
"The U. S. in the Atlantic Community," "The
American Labor Movement," and "American
Literature." Prominent American lecturers led
these discussions, in which foreign university
faculty members, teachers, students, and many
others participated. Many of the foreign par-
ticipants came with serious reservations as to
whether this would be a propaganda stunt on the
part of the Americans. Nearly all of them ended
up by praising the conferences and asking for
more.

Among the 1,468 American exchangees now in
Europe are 917 American students, who have en-
tered into student and university circles in 13
countries, forming an important link between the
United States and European youth groups.
These students were carefully selected through
wide and stiff competitions, stressing personality
and emotional suitability as well as professional
competence.

American specialists assigned to Europe in-
cluded the Labor Commissioner of the State of
Wyoming, who went down into mines accom-
panied by members of local labor organizations
and out into the fields to talk with workers about
their problems. He was given a good press every-
where except in Communist papers.

The Department was also active in encouraging
and supporting the visits to Europe of privately
sponsored American groups and individuals
whose trips would contribute to exchange objec-
tives. Among these were the American National
Ballet Theatre, the New York City Ballet, and se-
lected American musical groups and individual
artists. They are creating a new respect for
American artistic achievement in areas that have
long regarded this country as lacking in cultural
values.

The ballet was so completely successful that the
Communist press, which habitually derides
American artistic attainments, was forced to give
favorable reviews. Other critics highly praised
the performances and described the development
of ballet in America from an essentially European
art into a uniquely American form today on par
with the best Europe has to offer.

The potential effect of the Department's ex-
change efforts in this area may be gaged by study-
ing past exchanges. For example, evaluation
studies in one large European country show that

April 5, 1954

503

former grantees definitely hold more favorable
views of the United States than pei'sons who have
not visited this country. Furthermore, such
grantees are convinced, on the whole, of the sound-
ness of America's foreign policy.

The exchange experience has also often en-
hanced the grantee's position as an opinion leader.
A measure of this influence, in the country con-
cerned, was seen in recent elections, in which 70
of those reelected and 25 of those newly elected
to the national legislature were former grantees.

Many European government and private agen-
cies are reciprocating U.S. exchange efforts by
inviting Americans to visit their countries. Re-
cently, for example, the German Government in-
vited 48 American experts in the fields of religion,
welfare, and local government to tour Germany
at that Government's expense. German and Aus-
trian families have opened their homes during
summer months to American teen-agers in ac-
knowledgment of the German and Austrian teen-
age program conducted by the Department, under
which 2,000 youths have lived with American
families and attended local high schools since
1949. Other countries offering scholarship op-
portunities to iVmericans include the United
Kingdom, France, the Netherlands, all the Scandi-
navian countries, and Italy.

In the Near East and Africa

More than 900 exchanges were carried out with
26 countries in this area during the last 6 months.
Embracing critical African, Near Eastern, and
South Asian countries, this ai-ea is characterized
by extreme nationalism and strong antiforeign
attitudes. The exchange program has helped to
develop local leadership and to inspire that lead-
ei-ship with confidence in the United States. For
example, Aref ben Musa, now in the Libyan Min-
istry of Foreign Affairs, interviewed by Tripoli's
only Arab newspaper upon his return, talked of
impressions gained while in the United States as
an exchange student. Among other things, he
said, "I was able during my stay in the United
States to study and know the American people
and their various aspects of life, their democratic
spirit which they display at all times." He spoke
of the "generosity of American families," the
"brotherly atmosphere of cooperation in the
United States," and the way "the individual relies
upon his personal ability for his position in so-
ciety."

An important part of the exchange program in
this area is the bringing over of young persons
between the ages of 25 and 35 to study in American
colleges and universities. Most of these students
were active professional leaders in their home
countries at the time they received their invita-
tions— doctors, lawyers, govermnent officials.
What the American experience can mean to them
is demonstrated by an evaluation study conducted

in a representative Near Eastern country. This
study, which included student interviews before,
during, and after their trips, showed that largely
derogatory attitudes toward the United States
were transformed into favorable concepts of this
country as a friendly, democratic, hard working
Nation interested in the life and problems of
other countries.

Tlie Department also brought over many out-
standing opinion leaders. In cooperation with
Princeton University and the Library of Congress,
the Department invited 35 eminent Muslim
scholars to a "Colloquium on Islamic Culture in
Its Relation to the Contemporary World." Dele-
gates from Egypt, Turkey. Lebanon, Syria, Jor-
dan, Yemen, Iran, Afghanistan, Pakistan, India,
Malaya, and Indonesia met with American
scholars who have specialized in the history and
culture of the Islamic world. Maximum public
information was given overseas on this event by
the U.S. Information Agency.

Plans have been made to bring over a group of
Southeast Asian journalists under a project which
has as its primary objective a demonstration of
the way in which responsible newspapers cian
contribute to the economic, cultural, social, and
political development of a democratic society. In
addition to attending a seminar arranged Jby the
American Press Institute of Columbia University,
these newsmen will tour the country to get an
objective view of American life and institutions
and an understanding of some of our problems.
Grants have been given also to individual educa-
tors from India, Thailand, Greece, Iraq, and
Pakistan to enable them to participate in a 6-
week seminar on higher education at the Univer-
sity of Chicago.

Among the American lecturers visiting this
area was Dr. Roy G. Blakey, an economist, who,
in addition to developing courses in public finance
and taxation for college students, served as con-
sultant to the Turkish Ministry of Finance. An-
other was Mrs. Dolores M. Carter, a lecturer in
dietetics who organized and put into operation
in Afghanistan a program of instruction in nutri-
tion, sanitation and health, home nursing, and
infant care.

The Department also encouraged and supported
the exchange of 101 persons with this area spon-
sored by private American and foreign groups.
A recent trend among these exchanges was the
interest of American students in visiting India
and other Southeast Asian countries. This in-
creased interest is attributable to a group of Amer-
ican students from the University of Southern
California, who carried out a plan that they en-
titled "Project India." They lived and worked
with Indian students for 3 months in attempting
to correct misunderstandings about American life.
The Department also cooperated with the U.S.
National Student Association in arranging the
visits to this country of five outstanding Arab

504

Department of State Bulletin

youth leaders. It assisted selected student ad-
visers from American universities in tours of
Middle East countries to survey educational needs
and to renew contacts with returned foreign
students. It facilitated the tour to 10 Near East-
ern countries of a group of American mayors and
private citizens desiring to observe U.S. foreign
aid programs and the work of the United Nations
in rehabilitation and refugee problems.

In the Far East

This area is of the greatest importance. The
natural resources of the Far East make it a rich
prize in the eyes of the Communists. Nor is its
strategic imjjortance overlooked. As Lenin once
said, ''the road to Paris is through Peking."
Therefore, the anti-American pressure by the
Communists in the Far East is continuous and
strong.

The personal approach through exchanges
makes it jjossible for these people to obtain a true
picture of America. It allays suspicion and in-
spires cooperation.

The 774 exchanges carried out in the Far East
include those with the new nations of Indochina,
Malaya, and Indonesia. The programs emphasize
our desire to share our achievements rather than
to impose our way of life.

In one country the exchange program concen-
trated on bringing over officials from one of the
more important ministries, not only because of
their far-reaching influence at both national and
local government levels, but as directors of gov-
ernment publications, motion pictures, radio, and
other information activities.

From the Philippines came a group of youth
leaders, who toured the United States learning
about American youth activities and the role they
play in our national life. A group of labor leaders
came from Japan to study the labor movement in
the United States, first by participating in a spe-
cially arranged seminar at an American univer-
sity and later by working directly with union
locals.

Individual exchanges included specialists such
as the Public Health doctor from Ceylon con-
cerned with the control of certain tropical dis-
eases, now receiving specialized training at the
U.S. Public Health Service ; a member of Parlia-
ment and chairman of a finance committee in
Burma; an editor and publisher from Thailand;
and important government officials from critical
Indochina.

Plans were also made for a two-way "Repre-
sentative Government Project" in Japan, under
which groups of Japanese students will pursue
special programs in this field at American uni-
versities, and a seminar will be held in Japan by
prominent American lecturers and specialists.
Five hundred Japanese educators and government

officials at both the national, prefectural, and mu-
nicipal levels will participate in this seminar.

A special exchange project was planned for
Korea under which a past president of the Amer-
ican Bar Association and a dean of a law school
in a large southwestern university will conduct
a legal institute for Korean judges, prosecutors,
and lawyers.

Among the 104 Americans to visit this area was
Anna Lord Straus, a former United Nations dele-
gate, who is influential among Far Eastern wom-
en's groups, speaking on the subject of each in-
dividual's responsibility for good local and na-
tional government.

Other visitors included a labor leader and a pio-
neer in the development of the television industry
wlio, together, discussed good labor-management
relations and industrial research under the free
enterprise system.

Among the particularly effective tours of pri-
vate groups to this area was the visit to Japan of
the New York Giants. The Department cooper-
ated with American baseball officials in coordinat-
ing the tour, arranging through Foreign Service
posts for advance publicity and other assistance.

The Japanese are avid baseball fans and re-
sponded in large numbers to see the Giants in
action against a Japanese team. Perhaps the most
significant tribute to the Giants and their per-
formance in Japan was the total absence of any
Communist propaganda or unfavorable comment.
The presence on the team of some Negro players
was noted as an indication of racial equality.
Widely and favorably reported was the message
of President Eisenhower which Baseball Com-
missioner Ford Frick brought with him.

Altogether, the Department assisted 50 groups
in exchanging 111 persons with the Far East
during this period.

The Department also administers a program of
emergency aid to Chinese and Korean students and
scholars stranded in the United States. As self-
support became impossible for the majority of
these persons, grants were awarded to enable them
to reach their educational objectives in this coun-
try. Carried out under authority of Public Law
535, 81st Congi-ess, this program reached its peak
during the 1950-51 academic year. It has been
declining steadily since that time. Regulations
promulgated by the Attorney General in 1951
under Public Law 535 enabled these grantees to
seek employment in the United States. The De-
partment has since encouraged private groups and
individuals to employ Chinese grantees aided
under the program until it becomes practicable for
them to return to their home country. During the
last 6 months, 182 Chinese students and scholare
were assisted as compared with 2,400 during the
1950-51 academic year.

The China Aid Act was amended in 1951 to
provide Korean students with similar benefits,
with the exception that Koreans may not remain

April 5, 1954

505

and accept employment in the United States. This
is in accordance with Department policy and with
the strong recommendation of the Korean Gov-
ernment that Korean students return immediately
to help in the rehabilitation of their country upon
completion of their studies. Thirty-two Korean
students have been assisted under this program, 11
of whom were aided within the past 6 months.

In the Other American Republics

Eecognizing that the inter-American system
must be founded on mutual knowledge, under-
Standing, and respect, the person-to-person ap-
proach of educational exchange was determined in
1938 to be one of the most direct ways to achieve
this. The cooperation and mutual respect which
now characterize our relations with Latin Ameri-
can countries stem in large measure from the
cumulative effect of personal contact afforded by
exchanges over a period of 15 years. An intensive
study conducted in Brazil, for exam]>le. by an
independent research organization concluded that
among the major effects of the exchange experience
are a higher regard for the North American peo-
ple, greater conviction that the United States is a
true democracy, and an increase in the belief that
we are doing more than any other nation to prevent
war.

It is nevertheless necessary to recognize that to-
day anti-U.S. propaganda is making a determined
effort in Latin America to capitalize on every
motive for misunderstanding. Communist propa-
ganda is making special use of the Soviet's own
kind of exchange of persons progi-am, which in-
cludes invitations to influential Latin American
figures in press and labor circles for "guided tours"
behind the Iron Curtain.

The Department is now carrying out nearly 200
exchanges with 22 countries in this area. Among
the 35 Americans who visited Latin America re-
cently with Hilton R. Hanna, a labor leader, who
met with all levels of workers and management,
stressing — in excellent Spanish — the theme of
good labor-management relations for expanding
production.

The visit of this eminent American Xegro
promj^ted one high union official to reexamine
anti-U.S. propaganda in regard to race relations
and to seek help from the local U.S. mission in
getting the facts on the Negro in xVmerica.

An American economist served as consultant to
a Central American government and lectured on
economics at a university. An American profes-
sor furthered the establishment of a new Depart-
ment of Library Science at a Brazilian university,
meanwhile conducting, at the request of loc-al gov-
ernment officials, a training program for librar-
ians throughout the area.

In addition to the 72 Latin American students
brought to study in American colleges and uni-

506

versities, grantees included 91 teachers, lecturers,
and influential leaders, including the Chief Justice
of Peru, the Ecuadoran President's assistant and
liaison contact with the Ecuadoran Congress, and
a Brazilian editor and radio broadcaster.

An important part of the progi'am in Latin
America is assistance to 230 nonprofit American-
sponsored schools, representing a private invest-
ment of $6,500,000. This program, recently
praised highly by Dr. Milton Eisenhower, in-
cludes small cash grants and professional guid-
ance on curricula and other services, amounting
to $132,250 this year. In spite of the small
amount of money involved, the program has
stimulated these schools to maintain UTS. stand-
ards of teaching and school administration.

Private groups carried out 632 exchanges in
furtherance of the Department's exchange objec-
tives in this area. For example, a group of
Cleveland, Ohio, clubwomen made a tour of six
Latin American countries, with the assistance
of our Foreign Service posts and the Department.
In the field of sports, the Department assisted an
American baseball team to play a series of games
with a Mexican team, and arrangements were
made for players from Mexico and Cuba to par-
ticipate in the Brooklyn Dodgers Baseball School
in Florida.

The Department continued to assist a large
number of Latin American students in arranging
trips to this coinitry. By way of illustration,
arrangements were made for 63 engineering stu-
dents and 3 faculty members from the National
University of Colombia and 60 students from the
University of Mexico to visit places of technical
interest in the United States. The Department
also assisted the National Education Association
in arranging educational tours to Latin America
for a large number of xVmerican teachers.

PUBLIC SUPPORT OF PROGRAM

Participation of Private U. S. Citizens

The cooperation of the American public has
contributed substantially to the success of the ex-
change program. Hundreds of organizations and
thousands of individuals have offered hospitality
and professional guidance to these foreign visitoi-s
without remuneration.

American citizens who invite an exchangee
"home for dinner" or into the family circle are
playing a significant part in developing the ob-
jectives of the program.

Such hospitality is a two-way street in that it
is frequently equally rewarding to the hosts. The
word "foreigner" loses all alien connotations to
the family where an exchangee has become a fre-
quent visitor. Barriers of different cultures go
down before this person-to-person contact. In

DeparfmenI of State Bulletin

tliat contact, too, there are opportunities to clear
up misunderstandinjis wliich, left uncorrected,
at times mean the difference between a permanent
friend of the United States and a resentful critic.
There is the story of a young Chinese lad who
complained to an American friend that the towns-
people in the little village near his school "stared"
at him. He was very unhappy about it. The
American boy asked him, "Pal," he said, "what
would the people do if I visited a little town in
your country where they had never befoi-e seen
an American ?" Tlie Chinese boy thought it over.
"The children," he admitted laughing, "would
chase after you yelling 'Big Nose'." The hurt
was gone.

Tlie financial support given the exchange pro-
grams by private individuals and groups has been
substantial. For the 1953 program such support
is estimated at $8 million, given through scholar-
ships and other assistance awarded in conjunc-
tion with Government grants.

An example is the cooperative arrangement de-
veloped for foreign newsmen to enable tliem to
get work experience on American newspapers.
These papers pay the expenses witliin the United
States of the newsmen, while the Department pro-
vides international transportation. Now in its
second year, this project has brought over 35 for-
eign newsmen to work on American newspapers
in all parts of the United States. Also, over 1,000
local screening committees assist in reconunend-
ing qualified American candidates and some 600
officials of educational institutions serve as stu-
dent advisers in helping foreign students become
adjusted to American college and campus life.
Many similar services are performed by overseas
groups in cooperation witli our missions abroad.

Cooperating Agencies

The Department utilizes a number of public
and private agencies to assist in carrying out the
complex services involved in the program, such
as, for example, scheduling and announcing com-
petitions, processing and reconunending candi-
dates, orienting and supervising gi'antees, and
evaluating program effectiveness. This is in ac-
cordance with section 1003 of the Smith-Mundt
Act, directing the Department to utilize to the
maximum extent practicable the services and fa-
cilities of private agencies.

Altogether, 36 such agencies are currently co-
operating witli the Department under contract.
They were selected because of their particular
competence in specialized exchange fields and in-
clude such agencies as the Institute of Interna-
tional Education, the United States Office of
Education, the National Social "Welfare Assembly,
the Governmental Affairs Institute, the Confer-
ence Board of Associated Rasearch Councils, and
the American Council on Education.

RECEPTION AND ORIENTATION

Reception Centers

The Department, through its four reception
centers (New York, Miami, New Orleans, San
Francisco) helps to create a favorable first impres-
sion of this country. These centers make ar-
rangements for meeting certain visitors at docks
and airports, make arrangements for hotel accom-
modations and onward travel, and set up local con-
tacts which further the purpose of their visits.
Altogether, these centers assisted 5,003 foreign
visitors during this period.

Wasliington International Center

The Washington International Center provided
1,427 leader grantees with a week's intensive orien-
tation course, including lectures, discussion
groups, tours to points of historic interest, and
visits to Washington homes.^ These visitors also
included grantees sponsored by the Foreign Oper-
ations Administration and the Department of De-
fense under a coopei-ative arrangement whereby
the Department and these agencies share the cost
of the center. The success of the program is due
largely to the hospitality and other assistance pro-
vided by over 200 private Washington individuals
and agencies.

American Language Center

The language center provided English language
refresher instruction to 137 grantees of the De-
partment, the Foreign Operations Administra-
tion, and the Department of Defense, whose lan-
guage proficiencies were inadequate to carry out
their program. In the course of instruction,
usually lasting 2 weeks or more, materials having
to do with American government, social structure,
and culture are used.

University Orientation Centers

Orientation centers were established in 12 col-
leges and universities to provide an introduction
to American life and the American system of
higher education, as well as to give instruction in
the English language to 544 foreign students as a
preparation for their study in the United States.
The Experiment in International Living also ar-
ranged for 116 additional students to live in
American homes for 6 weeks during the summer
months.

' Ihiil.. Spptember-October 1052 (Department of State
publication 4714), p. 10.

April 5, 1954

507

Allied Efforts To Restore Freedom of Movement in Germany

Representatives of the United States, the United
Kingdom, and France in recent loeeks addressed
identical letters to Soviet authorities in Germany
proposing the removal of restrictions on freedom
of movement luithin Germany} Following are
texts of the correspondence between Ambassador
James B. Conant, U.S. High Commissioner for
Germany, and Vladimir Senienov, Soviet High
Commissioner for Germany, together xoith letters
exchanged by Maj. Gen. Thomas S. Timherman,
U.S. Commandant in Berlin, and Sergei Dengin,
Berlin representative of the Soviet High Com-
missioner for Germany.

Ambassador Conant to Mr. Semenov, February 22

At the meeting in Berlin on February 18 of the
Foreign Ministers of the U.K., U.S.A., France
and the U.S.S.R., it was stated that the govern-
ments of the U.K., the U.S.A. and France had
initiated a study of the steps that could be taken to
lessen the hardships which result for the German
people from the present division of Germany.^
Although such steps are no substitute for the re-
unification of Germany and the conclusion of a
peace treaty, which remain the objectives of its
policy, the U.S. Government considers that it
should be possible for the four occupying powers
in Germany to reach immediate agreement on the
elimination of a certain number of unjustifiable ob-
stacles which still prevent freedom of movement
between the different parts of Germany. The U.S.
Government believes that the Four Powers could
in this way bring about an immediate and essential
improvement in the living conditions of all Ger-
many.

I therefore propose to you that we shall agree
that each of us slaould, as appropriate, take the
following measures :

A. The abolition of the requirement for resi-
dence permits for Germans residing in the Federal
Territory who desire to travel to the Soviet Zone.
The maintenance of tliis formality in fact consid-

' For earlier correspondence on this subject, see Bulle-
tin of Sept. 21, 1953, p. 391, and Oct. 12, 1953, p. 490.

'■ Foreipn Ministers Meeting: Berlin Discussions, Janu-
ary 25-February 18, 1954, Department of State publica-
tian 5399, p. 129.

erably reduces the effect of the abolition of inter-
zonal passes which was decided at the end of 1953.

B. The opening of the inter-zonal crossing
points which have been closed by the Soviet au-
thorities on various dates before the middle of
1952. I would remind you of the proposal on this
subject made to you in my letter of January 8.'

C. The improvement of inter-zonal road and
rail transport services including the introduction
of fast rail services with improved passenger fa-
cilities between the principal cities of West Ger-
many on the one hand and East Germany and
Berlin on the other.

D. The removal of the prohibited zone, the
barbed wire fences and all other barriers placed
in the Soviet Zone along the Soviet Zone border.

E. The abolition of jul controls and of all im-
pediments to the free circulation of printed
matter.

As regards Berlin, we should agree upon suit-
able methods for re-establishing more normal
living conditions for the inhabitants of the city.
In particular, I consider it necessary to reach de-
cisions on the two following questions :

A. The abolition of all formalities re movement
of persons between Berlin and the Soviet Zone.

B. The removal of all impediments to the free
movement of persons and of goods between the
Western sectors of Berlin and Western Germany ;
in particular the abolition of the requirement for
the endorsement of Warenbegleitscheine [certifi-
cates for goods in transit] for such goods by the
authorities of the Soviet Zone and the introduc-
tion of arrangements for the customs-free transit
of such goods.

I shall be glad to meet with you at your early
convenience to discuss these proposals.

If, as I hope, they are acceptable to you, tech-
nical discussions may be required concerning pro-
posals B and C in paragraph 2 above. In that
event I shall be prepared to furnish the names of
the German technical experts authorized to deal
with these matters in respect of Western Germany
and I would be glad to obtain corresponding in-
formation from you.

' Not printed.

508

Department of State Bulletin

I have authorized Gen. Timberman to make
contact with Mr. Dengin and to transmit to him
a proposal dealing with the other restrictions
which we wish to see eliminated in Berlin.

General Timberman to Mr. Dengin, February 22

In his letter of February 22 the United States
High Commissioner has drawn Mr. Semenov's at-
tention to the necessity of re-establishing more
normal living conditions for the inhabitants of the
city of Berlin. In particular he has expressed the
desire that the four occupying powers should
reach agreement on the removal of impediments to
the freedom of movement of persons and goods be-
tween the Western sectors of Berlin and Western
Germany and on the abolition of all formalities
re the movement of persons between Berlin and
the Soviet Zone.

In the same spirit and in order to eliminate all
restrictions on freedom of communications be-
tween the four sectors of Berlin, I request you to
agree that the following measures should be put
into effect:

A. The abolition of police controls at the bor-
ders and of other foiTns of hindrance to the com-
plete freedom of movement of persons throughout
the city.

B. The removal of all street barriers between
sectors.

C. The re-establishment of direct tram services
throughout the city.

D. The re-establishment of the automatic city-
wide telephone service.

E. The re-establishment of reliable and efficient
postal services throughout the city.

F. The abolition of controls over and inter-
ference with the free circulation of printed mat-
ter, films and other cultural media throughout the
city.

I am convinced that an agreement should be
reached on these different proposals for the com-
mon good of the people of Berlin and am ready,
for my part, to discuss with you without delay
all the measures required to put them into force.

Should technical discussions be required con-
cerning proposals C and D above, I am prepared
to furnish the names of the German technicians
authorized to deal with these matters for my sector
and would be glad to receive similar information
from you.

Mr. Semenov to Ambassador Conant, March 6

[Translation]

In acknowledgment of your letter of February
22, 1954 containing a proposal that the High Com-
missioners of the Four Powers in Germany ex-
amine certain problems concerning movement of
the German population and goods across the
demarcation line between Western and Eastern

Germany, economic and cultural and relations
between the two parts of Germany, and other
questions, I deem it necessary to state the
following :

In the relations between Eastern and Western
Germany there are a number of important prob-
lems the solution of which is an urgent matter
for the German people who are interested in the
bringing together of Western and Eastern Ger-
many, in the development of economic and cul-
tural ties between the German Democratic Re-
public and German Federal Republic.

Taking this into account, at the Berlin Confer-
ence of the four Foreign Ministers, after it had
been made clear that it was impossible to effect
agreement between the positions of the confer-
ence participants on basic questions regarding
the unification of Germany and the conclusion
of a peace treaty, the Soviet Government sub-
mitted for the consideration of the conference a
proposal to recommend to the appropriate organs
of Eastern and Western Germany the following : *

1. The creation of an all-German committee
with the functions of effecting agreement and
coordination in the spheres of trade, financial
settlements, transport, frontier and other ques-
tions concerned with economic relations;

2. The creation of an all-German committee
on problems of the development of cultural, sci-
entific, and sport relations with the view of elim-
inating existing obstacles to the development of
German national culture.

The creation of such all-German committees
would best facilitate a solution of urgent internal
German problems, since the settlement of these
problems is the internal affair of the German
people themselves.

There can be no denial of the great significance
for the populations of both parts of Germany of
the questions referred to in your letter as well
as of other practical questions in the relations
between Eastern and Western Germany. All-
German committees could immediately decide
such internal German questions in the interests
of the populations of both parts of Germany with-
out the interference of the occupation powers.
Problems relating to the situation m Berlin could
also be examined and decided by German
authorities.

The establishment of the above-mentioned all-
German committees would serve as an important
contribution to the bringing together of Western
and Eastern Germany and would facilitate the
creation of conditions favorable for the unifica-
tion of Germany.

The government of the German Democratic
Republic has officially stated that it is agreeable
to the immediate launching of negotiations for
the creation of all-German committees. The
Soviet authorities for their part are ready to give

'Foreign Miiii.itcr.'i Meeting, p. 229.

Apt\] 5, 1954

509

all possible assistance to the creation and func-
tioning of the above-mentioned all-German
committees.

Mr. Dengin to General Timberman, March 6

[TranBlatlon]

Eeferring to yoiu- letter of February 22, 1 deem
it necessary to advise you that in the letter of
March 6 from the USSR High Commissioner for
Germany to Mr. Conant it is pointed out that in-
ternal German problems could be successfully
solved by all-German committees on economic and
cultural relations between Eastern and Western
Germany.

With regard to practical questions relating to
Berlin, such questions could also be settled by ap-
propriate representatives of the German authori-
ties. Soviet authorities for their part will give
every kind of assistance to the German authorities
in the settlement of these questions. Toward this
end, it is envisaged that the occupation authorities
of the Western Powers will take immediate steps
toward the normalization of the life of the Berlin
population, and, particularly, will take appropri-
ate measures for the liquidation of various criminal
organizations, located in West Berlin and carrying
on subversive work against the German Demo-
cratic Republic, on which the Soviet authorities
have repeatedly queried the occupation authorities
of the US, UK, and France.

Ambassador Conant to Mr. Semenov, March 17

I have received your reply of March 6, 1954,
to my letter of February 22 in which I proposed
to you that we should agree together with the
British and French High Commissioners in Ger-
many to eliminate immediately a number of un-
justifiable obstacles which still prevent freedom
of movement between the different parts of
Germany.

I regret, however, that instead of replying posi-
tively to my proposals of dealing with the prac-
tical and urgent problems with which we are faced,
you have confined yourself in your reply merely
to repeating M. Molotov's proposal for all-Ger-
man committees which was rejected by the three
Western Foreign Ministers at the Berlin confer-
ence.

The matters covered by my proposal must con-
tinue closely to concern the four occupying pow-
ers until such time as the reunification of Ger-
many takes place. None of these powers can
rightly evade its responsibilities in that respect.
It is, therefore, the duty of the four powers to
secure the removal of obstacles to free movement
of Germans between the different parts of Ger-
many, and insofar as the continued existence of
such obstacles is due to action or inaction on the
part of the authorities in Soviet occupied terri-
tories, my government will continue to hold the

510

Soviet authorities responsible for this hindrance
to further progress in the direction of German
reunification. It is for this reason that I have
requested you, in my previous letter, to inform
me of the Soviet attitude towards the specific
proposals which I have made and which I have
offered to discuss with you.

It is clear that certain of the questions mentioned
in my letter of February 22 require only uni-
lateral decision and action by the authorities of
the Soviet Zone. These are :

(A) The abolition of the requirement for resi-
dence permits for Germans residing in the Federal
territory who desire to travel to the Soviet Zone ;

(B) The removal of the prohibited zone, the
barbed wire fences and all other barriers placed
in the Soviet Zone along the interzonal border ;

(C) The abolition of all formalities regarding
movement of persons between Berlin and the
Soviet Zone.

If, as I hope, the Soviet authorities share my
government's desire to alleviate conditions which
are oppressive to the German people, may I ask
you to indicate to me at an early date that you
are now ready to take steps to have the above
measures put into effect?

With regard to the further proposals made in
my letter of February 22, 1 suggest that, in every
case in which we consider it useful, discussions
should take place between German technical ex-
perts witli a view to reaching practical solutions
which, once they are agreed, should become effec-
tive without delay. I shall be ready, as I have
already informed you, to furnish you with the
names of the experts authorized to deal with these
matters in respect of AVestern Germany who would
then meet with corresponding experts to be nom-
inated by you. If you agree with the foregoing,
I suggest that the first step should be for us to
meet in order to draw up terms of reference which
would enable the discussions between experts to
begin at once.

General Timberman to Mr. Dengin, March 17

I have the honor to refer to your letter of March
6, 1954.

In my letter dated February 22, I asked you
to signify your agreement to put into effect six
practical measures intended to eliminate restric-
tions on free communication between the four
sectors of Berlin.

I regret to note not only that have you not
thought fit to associate yourself with these prac-
tical proposals, but that you have evaded the real
issues by repeating allegations, which are devoid
of all foundation, about the existence in West
Berlin of so-called espionage organizations.

You suggest, in your reply, that "appropriate
representatives of the Grerman authorities" should

Department of State Buthtin

consult together in order to resolve "the practical
questions relating to Berlin".

I must in the first place point out that certain
of the proposals which I made to you do not re-
quire any consultation or prior discussion of this
kind. This is the case, for instance, with regard
to the abolition of police controls and the removal
of the barriers erected at inter-sector borders.
There are at present in the U.S. sector no police
controls on the movement of persons between the
U.S. sector and the other sectors. As for the bar-
riers erected at the inter-sector borders, all those
which were formerly in existence in the U.S. sector
have been removed long ago. The same steps
have been taken in the British and French sectors.
It requires therefore only a decision by the au-
thorities of the Soviet sector in order to eliminate
these obstacles to freedom of movement. I shall
be glad to learn that you are ready to take the
necessary steps to put such a decision into effect
as soon as possible.

The solution of other questions mentioned in my
letter of February 22 coidd, on the other hand, be
facilitated by discussions between German tech-
nical experts who would make preparations for
putting the proposed measures into effect. It was
with this in mind that I offered to furnish you
with the names of the experts authorized to deal
with these measures with respect to my sector. I
hope that you for your part will agree to nomi-
nate experts for the purpose of participating in
such technical discussions, and I renew my pro-
posal that we should meet together in order to
draw up jointly the terms of reference required
so that these discussions may begin without delay.

ti

Sovereignty" of East Germany

Stateinent hy Lincoln White
Department Press Officer'^

The reported proclamation [on March 25] of
"full sovereignty" of the "East German Peoples
Republic" is sheer facade. If these reports are
true, the significant fact is the last one reported :
That Soviet occupation troops would remain in
East Germany, if those troops were removed, the
entire puppet regime would collapse under the
weight of the hatred and hostility of the populace
which it has the effrontery to claim it represents.

Letters of Credence

Paraguay

The newly appointed Ambassador of Paraguay,
(luillermo Enciso Velloso, presented his creden-
tials to the President on March 26. For the text
of the Ambassador's remarks and the text of the
President's reply, see Department of State press
release 162.

' Made to correspondents on Mar. 25.
April 5, J 954

U.S. and Canada Examine
Common Economic Problems

Text of Joint Communique

Press release 143 dated March 17

1. The first meeting of the joint United States-
Canadian Committee on Trade and Economic
Affaii-s was held in Washington on the 16th of
March. The United States was represented by:

Hon. John Foster Dulles,

Secretary of State
Hon. George M. Humphrey,

Secretary of the Treasury
Hon. Ezra Taft Benson,

Secretary of Agriculture
Hon. Sinclair Weeks,

Secretary of Commerce

Canada was represented by :

Rt. Hon. C. D. Howe, M. P.,

Minister of Trade and Commerce, and Defence
Production
Rt. Hon. James Garfield Gardiner, M. P.,

Minister of Agriculture
Hon. Douglas Charles Abbott, M. P.,

Minister of Finance
Hon. L. B. Pearson, M. P.,

Secretary of State for External Affairs

In addition to the members of the Joint Com-
mittee, Governor [Sherman] Adams, the Assistant
to the President; the Honorable Douglas Stuart,
United States Ambassador to Canada; and Dr.
Gabriel Hauge, Economic Assistant to the Presi-
dent, participated in the discussions.

2. The purpose of the meeting was to provide an
opportunity for United States and Canadian Min-
isters to examine the trade and economic problems
that are common to both countries.

3. The Ministers noted that the flow of trade be-
tween Canada and the United States is greater
than that between any other two countries. They
discussed various aspects of present trade rela-
tions and agreed on the desirability of avoiding
any action which would interfere with this trade
from which the two countries derive such great
benefits.

4. Since the common economic problems of
Canada and the United States can be solved with
greatest success in a world where the volume of
trade is steady and increasing and where exchange
arrangements are of a kind to facilitate such
growth, consideration was given throughout the
discussions to the need for action toward freer
trade and payments on a broad front. It was
agreed that few things would contribute more to
the well-being and stability of the free nations of
the world than a forward move in this direction.
The need for such progress seemed all the greater
at a time when many Western countries are faced
with the necessity of supporting effective defense
programs over a long period.

5. The United States and Canadian Ministers
found encouragement in many of the economic

511

developments that liave taken place over the past
year. They noted that the gold and dollar reserves
of other countries generally have been rising; that
there has been a marked improvement in the in-
ternal economic stability of many countries; and
that these favorable developments have made pos-
sible some relaxation of import restrictions.
Nevertheless, it was agreed that the recovery to
economic health has not progi'essed equally for all
countries. What is needed, it was concluded, is the
creation of a more flexible system of trade and
payments throughout the world which would offer
greater resilience to changing circumstances and
which would contribute dynamically towards ris-
ing standards of living. It was agreed that much
of the necessary preparation for such an advance
has already been accomplished by the work of the
Commission on Foreign Economic Policy in the
United States, by the proposals of the Common-
wealth Economic Conference, and by discussions
within the Organization for European Economic
Cooperation.

6. In the meantime, it was agreed that it is
essential that pressing, but possibly temporary,
economic problems should not be solved by expedi-
ents which might make more difficult the advance
on a broad front that was held to be necessary.
One immediate problem which received close con-
sideration was that raised by the accumulation of
large agricultural surpluses. Special incentives
and favorable weather conditions have operated
in varying degrees to enlarge these surpluses. The
Ministers of both countries recognized that if
surpluses were to be disposed of without regard to
the impact on normal trade, great damage might
be done not only to the commerce of Canada and
the United States but also to the world economy.
The Ministers reaffirmed that it is the continuing
policy of their respective governments, in dispos-
ing of agricultural surpluses abroad, to consult
with interested countries and not to interfere with
normal commercial marketings. They stated that
it is their settled intention that any extraordinary
measures that might be adopted to reduce sur-
pluses should result in greater consumption and
should augment, and not displace, normal quanti-
ties of agricultural products entering into world
trade.

7. In advancing toward a freer system of world
trade and payments, it was agreed that existing
international organizations would continue to
play an important role. The valuable work al-
ready done by the International Monetary Fund,
the International Bank, and the Contracting
Parties of the General Agreement on Tariffs and
Trade, was recognized. Ministers noted with sat-
isfaction the arrangements which have recently
been made witliin the Fund to enable its resources
to be used more effectively. Acknowledgment
was also made of the useful service that has been
performed by Gatt in developing a code of com-
mercial conduct and in providing a forum where

512

multilateral tariff agreements could be negotiated
and where the problems of commercial policy
could be discussed.

8. It was appreciated that it is for countries
whose currencies are now inconvertible to decide
when and under what circumstances they might
wish to make them convertible. It was also real-
ized that enlightened economic policies on the
part of the United States and Canada will ma-
terially contribute to establishing and maintain-
ing broader freedom of trade and payments
throughout the world. Because of the importance
of that objective, the United States and Canadian
Ministers warmly welcomed the evidence of a de-
sire in many countries to take decisive steps
toward the restoration of a broad area of con-
vertibility, and expressed a willingness to do
their part to help in making such a movement
successful.

9. The discussions at this meeting of the Joint
Committee were marked by the friendliness and
candor which are characteristic of relations be-
tween the two countries. At the invitation of the
Canadian Ministers the second meeting of the
Joint Committee will be held in Ottawa.

U.S. Views on Situation
in Indochina

A'eu's Conference Statement by Secretary Dulles

Press release 154 dated March 23

I do not expect that there is going to be a Com-
munist victory in Indochina. By that I don't
rnean that there may not be local affairs where one
side or another will win victories, but in terms of
a Communist domination of Indochina, I do not
accept that as a probability.

There is a very gallant and brave struggle being
carried on at Dien-Bien-Phu by the French and
Associated States Forces. It is an outpost. It
lias already inflicted very heavy damage upon the
enemy. The French and" Associated States Forces
at Dien-Bien-Phu are writing, in my opinion, a
notable chapter in military history. Dien-Bien-
Phu is, as I say, an outpost position where only a
very small percentage of the French Union forces
is engaged and where a very considerable percent-
age of the forces of the Viet Minh is engaged.

Broadly speaking, the United States has, under
its previously known policy, been extending aid
in the form of money and materiel to the French
Union Forces in Indochina. As their requests for
materiel become known and their need for that
becomes evident, we respond to it as rapidly as
we can. Those requests have assumed various
forms at various times. But I think that we have
responded in a very prompt and effective manner
to those requests.

Depor/menf of State Bulletin

If there are further requests of that kind that
are made, I have no doubt that our military or
defense people will attempt to meet them.

As soon as this press conference is over, I am
meeting with Admiral Radford.^ But so far I
have not met General Ely,^ and I do not know what
requests he has made, if any, in that respect be-
cause that would be primarily a matter for the
Defense people in any case. The jDolicy has already
been established so far as the political aspects of
it are concerned.

We have seen no reason to abandon the so-called
Navarre ^ plan, whicli was, broadly speaking, a
2-year plan which anticipated, if not complete
victory, at least decisive military results during the
fighting season which would follow the present
fighting season, which is roughly a year from now.

As you recall, that plan contemplated a very
substantial buildup of the local forces and their
training and equipment. It was believed that
under tliat program, assuming there were no seri-
ous military reversals during the present fighting
season, the upper hand could definitely be achieved

in the area by the end of the next fighting season.
There have been no such military reverses, and,
as far as we can see, none are in prospect which
would be of a character which would upset the
broad timetable and strategy of the Navarre plan.

Asked whether that ruled out any possibility of
a negotiated peace at Geneva, Mr. Dulles replied:

At any time if the Chinese Communists are
willing to cut off military assistance and thereby
demonstrate that they are not still aggressors in
spirit, that would, of course, advance greatly the
possibility of achieving peace and tranquility in
the area. That is a result which we would like
to see.

To date, however, I have no evidence that they
have changed their mood. One is always hopeful
in those respects, but so far the evidence seems
to indicate that the Chinese Communists are still
in an aggressive, militaristic, and expansionist
mood.

Japan's Progress and Prospects

hy Deputy Under Secretary Mxirphy '■

In nearly 50 years of its existence, the Japan
Society has been of inestimable value to U. S.-
Japanese relations. Your program of promoting
cultural relations between our two great countries
and in expanding the base of understanding of
Japan in the United States is of service to both
nations. Your work constitutes a genuine con-
tribution to the goals of American foreign policy
in a most critical area. It is much appreciated by
those of us responsible for conducting America's
foreign relations.

Together with his many American friends, I
extend a warm welcome to our guest of honor to-
night, the new Ambassador of Japan to the United
States, Sadao Iguchi. Ambassador Iguchi's dip-
lomatic career is one of outstanding service to
his country. We are honored that his Govern-
ment has selected him as its representative here.

' Adm. Arthur W. Radford, Chairman of the Joiut
Chiefs of Staff.

- Gen. Paul Ely, French Chief of Stuff.

^ Gen. Henri-Eugene Navarre, French Commander in
Indochina.

* Address made before the Japan Society at New York,
N. Y., on Mar. 18 (press release 146).

AptW 5, 7954

293698—54 3

I first met Ambassador Iguchi when I went to
Japan as Ambassador in 1952. He was then
Vice-Minister in charge of the Japanese Foreign
Office. I acquired a profound respect for him
both as an official and as a person. Most of you,
I am sure, will recall his diligent work as Japan's
chief negotiator for the multilateral Treaty of
Peace with Japan and his efforts in connection
with the Security Pact between the United States
and Japan. Although I know him to be an un-
assuming and modest man, he can well be proud
of his role in these achievements.

Of course, one of the less heralded but, in its
field, no less significant results in which Ambassa-
dor Iguchi played a leading role in the early
months of Japanese sovereignty was the arrange-
ments by which Japan and America might benefit
from tlie interchange of professors, students, and
specialists in various fields. I refer to Ambassa-
dor Iguchi's considerable part in concluding with
my Government the Fulbright Agreement which
laid the foundations for cultural exchange.

One of the most rewarding experiences of my
career was to serve as my Government's first Am-
bassador to Japan on the conclusion of the treaty
of peace. I had never previously served in the

513

Orient. I came to Japan eager to learn about her
people and her problems. The friendships ex-
tended to me, the faitli placed in our intentions,
the unflaooing consideration sliown by high offi-
cials in tiie Japanese Foreign Office and through-
out the Government is an experience for which I
shall always be grateftd.

At that time Ambassador Iguchi %Yas the Under
Secretary for Foreign Affairs.

Now, Your Excellency, as Ambassador to the
United States, it might be suggested that our
positions are rather in reverse. But you are not
a stranger to my country as I was to yours. Am-
bassaclor Iguchi first came to America in 1933,
when he served as consul for 2 years in New York
and then in Chicago for 1 year. After returning
to Japan. Ambassador Iguchi came back to us in
1940 as Consul General in New York and then as
Counselor of Embassy in Washington. Thus,
Your Excellency, you bring to your new responsi-
bilities a knowledge and experience of gi'eatest
value. You also return to America and to a wide
circle of friends who remember you with esteem
and affection.

Ambassador Iguchi has many other qualities
which endear him to Americans. Among them, he
is a baseball player — at least, like many of us these
later years, an armchair one — who owned the
"Taiyo Whales." I don't know how the record of
the Whales would compare with the Yankees;
perhaps he will feel more at home with the Sena-
tors. In any case, another hobby of his, golf, will
doubtless protect him from the rigors of Wash-
ington.

Ambassador Iguchi is, furthermore, one of the
postwar leaders of Japan who has contributed
most effectively to Japan's progress in reestab-
lishing itself within the community of nations.
There is no denying that Japan, its leadei-s, and
its people still have a long, hard road to travel
before reaching their objectives. Nevertheless,
the strides made since the end of the war support
the conviction that the courage and determination
of the Japanese nation will produce success. At
a time when American responsibilities for occupa-
tion and reconstruction have ceased, Japan and
the United States have entered an era of friendly
and understanding cooperation.

Postwar Treaties With Japan

For example, one of the major steps Japan and
the United States have taken together is the com-
pletion of a Treaty of Friendship, Commerce,
and Navigation, which I signed at Tokyo last
April. This is the first commercial treaty entered
into by Japan since the war. Based on a belief
in the mutual benefit of expanded trade, commer-
cial relations between the two countries have been
placed on a basis that grants the businessmen of
our respective countries more freedom of action.

Japan is also a participant in the General Agree-
ment on Tariffs and Trade. Thirty-four contract-
ing parties to Gatt and Japan have agreed that
commercial relations between them will be based
on the agreement until Japan becomes a full mem-
ber of Gatt, probably by mid-1955.

In early February regularly scheduled com-
mercial ilights were started by Japan Air Lines be-
tween Tokyo and San Francisco, a result of the
recent United States-Japanese Civil Air Transport
Agreement. This agreenient has been effective
since September 1953.

A 4-year copyright arrangement between the
United States and Japan was established last
November 10 to protect both Japanese and Ameri-
can literary, artistic, and musical works. Both
of our Governments look forward to the day when
a permanent copyright agreement can be reached
on a mutually satisfactory basis.

A protocol on the exercise of criminal juris-
diction over United States forces in Japan was
negotiated and signed on September 29, 1953,
gi-anting Japan the same rights as are enjoyed by
the Nato countries. On February 12 our Ambas-
sador at Tokyo signed an agreement on behalf of
the United Nations forces stationed in Japan
which accorded them substantially the same treat-
ment as is accorded to United States forces there.

Japan's Bid for U.N. Membership

The United States, as you know, has sponsored
Japan's bid for United Nations membership, when
we presented a resolution to that effect to the
Security Council in August 1952. The Soviet
Union used the veto to block Japan's admission.^
In December of that year it also opposed a reso-
lution of the General Assembly which registered
the opinion that Japan was a peace-loving state
within the meaning of the charter and should there-
fore be admitted to memberehip.

The United States will continue to press for
Japan's admission to the United Nations. Ambas-
sador Warren Austin stated our position in Sep-
tember 1952. He declared :

It is for tlie Security Council to say whettier Japan is
a peace-loving state, able and willing to carry out its
obligations under the charter. In the opinion of my Gov-
eruinent, Japan fully possesses all of these qualiflcations.
Japan desires to be a part of and play an important role
in the international community. As a state which now
lacks the means of self-defense, she needs collective
security as envisioned by the United Nations Charter.
The United Nations needs this nation of tS5,000,000 people.
Japan's nieni1)ership will strengthen the United Nations
and will assist in achieving the maintenance of inter-
national peace and security.

The United States is proud to recognize Japan's return
to the international community of nations and to put
before the Security Council the draft resolution in support
of Japan's application for admission to the United
Nations.'

For a statement by Mr. Murphy regarding the Soviet
veto, see Bulletin of Oct. 6, 1952, p. 524.
" Ihkl., p. 526.

514

Department of State Bulletin

This position is as valid today as it was nearly 2
years ago. The United Nations needs Japan and
Japan needs the United Nations. Let ns hope
that the Soviet Union will soon recognize the
barrenness of its position and vote to admit Japan
to its rightfnl place among the members of the
United Nations.

Until such time as its admission becomes a fact,
Japan is maintaining its interest in the work of the
United Nations through its permanent observer
delegation.

Japan is a member of the International Court
of Justice, of the International Monetary Fund,
and of the International Bank for Reconstruction
and Development. It is a member and is on the
Council of the Food and Agriculture Organiza-
tion. Other specialized agencies to which the
country belongs are the International Labor
Organization, the International Telecommunica-
tion Union, the Universal Postal Union, the AVorld
Health Organization, the International Civil
Aviation Organization, and the World Meteor-
ological Organization. Japan is also an associate
member of the Economic Commission for Asia
and the Far East.

Japan's active participation in the International
North Pacific Fisheries Commission, for which
I^rovision was made in the International Conven-
tion for the High Seas Fisheries of the North
Pacific Ocean, demonstrates Japan's cooperation
with Canada and the United States in the sphere
of fisheries conservation. The first meeting of
the Commission was held in Washington last
month. Discussions centered around organiza-
tional matters and research programs on fish of
common concern to the three countries.

U.S. -Japanese relations were further cemented
last Christmas Day, when control of the Amami
Oshima Group, the northernmost of the Ryukyus,
was relinquished to Japan.

Mutual Defense Assistance Agreement

The Mutual Defense Assistance Agreement
signed last week at Tokyo is, in the view of the
United States, a logical step in implementation
of the Security Treaty between the Unitetl States
and Japan, which became effective simultaneously
with the Treaty of Peace on April 28, 1952. You
will recall that the preamble to the Security
Treaty states that the United States is ". . .
willing to maintain certain of its armed forces
in and about Japan, in the expectation, however,
that Japan will itself increasingly assume respon-
sibility for its own defense. . . ."

The Mutual Defense Assistance Agreement
provides the basis for the grant of assistance pur-
suant to the mutual security legislation of the
United States. It takes us nearer to the time
when we shall be able to withdraw our forces
from Japan. The agreement signed last week is
not unique. It is one of a series of such agree-

ments that the United States has negotiated with
sovereign nations throughout the world. In effect
this agreement makes Japan a full member of
the free world team.

In planning a program to assist Japan in
strengthening its defenses, we recognize that an
essential element for consideration is its economic
stability. We shall also provide a military assist-
ance advisory group to help train the Japanese
forces. This agreement represents an important
step to redress a situation which at one time saw
Japan completely defenseless and entirely under
the protection of United States forces.

Of course, the Soviet Union has attacked and
will continue to attack this step toward safeguard-
ing the integi'ity of Japan as a threat to itself.
Sometimes one may wonder how naive the Com-
nunusts think the rest of the world may be; when
their power drive smashed down across the 38th
parallel and ravaged the Republic of Korea, the
source of aggression in Asia was immediately
apparent.

Aim of Communist Aggression in Korea

And, further, it was clear that South Korea was
not the main Communist target. The Commu-
nists were aiming at Japan. By occupying the
Korean Peninsula, the aggressors would have held
the historical dagger aimed at Japan's heart.
When the United Nations stalled this move, the
innnediate Communist threat to Japan was
checked. In this breathing spell, Japan and the
United States are working together to guarantee
that any such future threat will not find Japan
unprepared.

Now that Japan has joined with the United
States in a Mutual Defense Assistance Agreement,
the question naturally arises: "Wliat does this
mean with regard to the evolution of regional
security in the Pacific ?"

In some quarters, questions arise as to why we
have not gone ahead and organized a Pacific pact
as we did for tlie North Atlantic community.
Such questions miss the problem entirely.

As you know, the United States is on record as
favoring a regional security arrangement in the
Pacific. We feel that the menace to the free world
by international communism is great.

However, one does not bring such organizations
as Nato into being with a wave of the wand.
Nato, like any regional security agreement,
evohes from a set of essential conditions. A pri-
mary condition was a common recognition of a
connnon pei-il from without. Another condition
was the habit of cooperation that had evolved
over a period of many years. A third condition
was the conviction shared by all that the security
of each could only be achieved througli collective
action.

Clearly, unless these conditions obtained in the
North Atlantic community, it would have been

April 5, 1954

515

foolish to attempt a regional organization. But
the conditions were there. Consequently, the or-
ganization was possible.

The situation in the Pacific is very different.
In the past decade the area has witnessed the
birth of many new national states preoccupied in
large measure with their internal problems and
still distracted to some extent by memories of
Western colonialism.

The idea that Communist imperialism is the
immediate and major threat has been slow in
taking hold. Some have come to recognize this
menace more rapidly than others. Consequently,
we cannot expect to find a positive trend afoot
aiming at the establishment of a Pacific coalition.

In addition, as of now, the type of relationships
between the nations of the Pacific area necessary
before collective action can be effected is as yet
undeveloped. Several Far Eastern nations have
failed to conclude treaties with Japan, and sev-
eral have not recognized the Associated States.
Although these divergencies may not be serious
in the long run, they militate against the kind
of cooperation and collaboration upon which real
regional security depends.

To those who know the region and its problems,
it is clear that the initiative for a Pacific regional
grouping must come from the Asian countries
themselves. The leadership must develop there.
This country can only stand ready to encourage
the movements, to give support when needed, and
to participate when invited. The fundamental
decisions on Asiatic-Pacific security must be made
by Asians themselves.

Growth of Inter-Asian Understanding

It is encouraging to note that the specific con-
ditions mentioned earlier, on which the develop-
ment of a Pacific pact rests, are coming into being.
Inter-Asian understanding is growing. And rec-
ognition of the true character of Communist im-
perialism is spreading steadily. The Communists
themselves have aided the spread of this recogni-
tion is no small fashion. Their attack on the Ee-
public of Korea, their performances at Panmun-
jom, their war in Indochina — all these reveal them
in their true colors. And as they continue to pi-ess
their strategy of conquest, their identification as
imi)erialists, as the exponents of a new and pecul-
iarly vicious twentieth-century colonialism, be-
comes more and more clear.

Wliile it has not been possible to bring an
"Asian Nato" into being, the United States has
been contributing to a strengthening of the free
world's defense in the area. As part of our con-
tribution, we have concluded a series of bilateral
security agreements with Pacific powers. The
agi'eement with Australia and New Zealand,
known as Anzus, has been operative for several
years now. We also have pacts with the Kepublic
of the Philippines and with Japan. The pact

with the Republic of Korea has already been ap-
proved by the United States Senate. AVliile these
agreements are similar in framework, they are
separate and distinct — each from the other. They
contain no provisos which could offer obstruction
to a regional agreement. Indeed, it is conceivable
that their effect would be quite the reverse.

In the most practical of terms, cooperation, be-
tween individuals or between nations, is a habit
that requires cultivation. I believe we can ex-
pect that, under the spur of Coixununist ambitious
in Asia and the Pacific, the nations of the area
will move toward collective action as the only
practical safeguard against the Red aggressor.

The United Nations Economic Commission for
Asia and the Far East is another activity that is
helping to cultivate the habit of cooperation about
which we have talked. In Ecafe we find a highly
diverse group of nations which have joined hands
to tackle regional economic and social problems.
Their efforts have already met with some success.
Perhaps it is significant that collective action is
first going forward in the field of economics, be-
cause it is there that some of the most pressing and
immediate difficulties are to be found.

Japan's Economic Needs

As mentioned earlier, it is essential that Japan
gain sufficient strength to assume responsibility for
her own defense. To do so, the Japanese economy
must add a good deal of muscle. And the neces-
sary muscle will not be easily developed. The
country is now under terrific pressure from a rap-
idly expanding population. Without a corre-
sponding increase in economic activity, levels of
living will drop rather than rise and make Japan
susceptible to the spread of Communist subver-
sion within its borders. Pressures would also
increase for trade with Communist Cliina.

Because of this as well as the economic require-
ments of effective self-defense, a large and expand-
ing volume of Japanese industrial production and
foreign trade is essential. We must be frank
enough to recognize that this will not be possible
unless the U.S. is willing to continue to lead the
world in reducing trade barriers and increasing
purchasing power in the free world. With the
end of the fighting in Korea, the end of our special
expenditures in Japan is in sight, although it will
probably be a year or more before the full impact
of this move is felt. What we do to take up the
slack in this situation will in large measure cleter-
mine the economic future of Japan.

Japan's industrial recovery since the war has
been phenomenal. Its present industrial produc-
tion is half again what it was in 1940, and its
capacity is thought to be equal to 25 percent of
the Soviet Union's. The problem facing Japan
today, therefore, is how to employ this industrial
production to cut down the imbalance in Japanese
trade.

516

Department of State Bulletin

Since Japan must import most of its raw ma-
terials and about one-fourth of its food, it will
have to have access to world markets and be able
to compete for them on equal terms. This is not
the case at present, and thus Japan's imports
dangerously outweigh its exports.

In 1952 the adverse trade balance reached $759
million. Japan's trade deficit in 1953 is estimated
to be $1,135 million, larger by far than any pre-
vious year. This is a grave situation, which has
been sustained thus far only by our special ex-
penditures in connection with the Korean hostili-
ties and the stationing of our forces in Japan,
which, of course, are no permanent solution to
Japan's problem.

Japan's trade with the United States is also
sharply out of balance — the deficit in 1952 was
$539 million. Almost one-third of all Japanese
imports came from the United States, and we
bought about one-sixth of Japan's total exports.
In 1952 Japan was our largest customer for cotton,
rice, barley, and soybeans and our second most
important buyer of wheat.

Reduction of Tariff Barriers

We have a self-evident stake in preserving and
expanding the market for U.S. goods in Japan.
Equally important to recognize is the necessity for
Japan to sell in the American market. It is the
only way Japan can earn dollars to continue to buy
in the United States so long as most currencies of
the world are inconvertible. I recognize that
there are many serious problems involved in this
question, but the fact remains that we must buy
more Japanese goods in this country — and that
means lower tariifs.

There are several recommendations in the recent
report of the Randall Commission which, if im-

glemented, can be of benefit not only to the United
tates but to the Japanese economy as well. The
recommendations which call for further simplifi-
cation of customs procedures and for authorizing
the President to reduce tariff barriers would im-
prove the Japanese export outlook significantly.
Legislation permitting the United States to take
the lead in reducing world trade barriers would
probably enable Japan to negotiate fully with the
contracting parties to the General Agi-eement on
Tariffs and Trade, with a view to becoming a
full-fledged contracting party to the agreement.
Tariff negotiations with the United States would
result in an increased volume of U.S. -Japanese

trade, which would be extremely advantageous to
both nations.

Eeconunendations of the Randall Commission
of importance in our economic relations with
Japan are those which call for a vigorously
pressed program of technical assistance and the
creation abroad of a climate conducive to private
foreign investment. The Commission also sug-
gests U.S. Govermnent loans where economic aid
is needecl and cannot be provided by private or
international sources. These reconunendations
would be particularly important in increasing the
purchasing power of Southeast Asia, an area in
which expanded trade regulations with Japan
would be inmiensely beneficial to all parties
concerned.

I should like to make it clear that we are not
favorino; Japanese trading interests at the ex-
pense ot those of U.S. and European businessmen
trading in Southeast Asia or to the detriment of
tlie countries of that area. An increase in Japan's
trade with Southeast Asia would not be a gift
benevolently bestowed but a reward that the Jap-
anese businessmen would have to earn on a basis
of effort and merit.

Japanese competition in the Southeast Asian
market will undoubtedly create new problems in
some places, but I am convinced that the market
is large enough for all comers. With nearly a
billion people in the area whose needs cannot pos-
sibly be filled in the immediate future, the influx
of Japanese trade would work to the advantage
of everyone concerned.

This review of Japan's progress since it re-
gained sovereignty is by no means complete, as
you are well aware. But I think it sketches in
some general lines that show how far Japan has
progressed in that period and what must be
achieved in the future. A cautious optimism
about the future of Japan is justified, but we
should recognize the many pitfalls to be avoided
and the numerous obstacles to be overcome before
the danger zone is passed through.

We are all familiar with the old expression that
"the first hundred years are the hardest." The
first hundred years of formal relations between
the United States and Japan come to an end on
March 31, the 100th anniversary of the Treaty
of Kanagawa. Let us indeed hope that the hard-
est years are behind us and go forward together
in the confidence that our friendly relations are
heralding the advent of a century of friendly co-
operation, of peace and prosperity.

April 5, 1954

517

U.S. and Japan Sign Mutual Defense Assistance Agreement

FoUoiving are the texts of {1) a V .&.- Japanese
joint comm.miique of March 8 regarding the sign-
ing on that date of the Mutual Defense Assistance
Agreement, (2) a statement made hy Atnbassador
John M. Allison on the occasion of the signing of
the agreem£nt, and (3) the agreement, together
with related agreements and arrangements signed
on the same date.

JOINT COMMUNIQUE

Press release 117 dated March 8

Japanese Foreign Minister Katsuo Okazalvi and
American Ambassador Jolm M. Allison in a cere-
mony held at the Foreign Office today signed a
Mutual Defense Assistance Agreement between
Japan and the United States of America. At the
same time they signed a series of three other re-
lated agreements pertaining to the purchase of
agricultural commodities, economic arrangements,
and guaranty of investments, and arrangements
for the return of equipment under the Mutual De-
fense Assistance Agreement.

The Mutual Defense Assistance Agreement
signed today is modeled after similar agreements
between the United States and many other nations
participating in the Mutual Security Program.
It provides the basis for the grant of assistance
pursuant to the Mutual Security legislation of the
United States, and is designed to facilitate the
planning of a Defense Assistance Program for
Japan with recognition that economic stability
of the country is an essential element for consid-
eration in developing its defense capacities. The
agreement also contemplates the establishment of
an American Maag ^ to operate under the direc-
tion and control of the American Ambassador in
Japan. This group will serve in an advisory ca-
pacity to assist and guide the development of
Japanese defense forces. The Japanese Govern-
ment has agreed to provide the sum of yen 357,-
300,000 or approximately $990,000, in addition to
certain contributions in kind, for the purpose of
meeting the expenses of the Maag.

The arrangements for the return of equipment
are closely related to the Mda agreement, and pro-
vide generally that any equipment furnished to

' Military Assistance Advisory Group.

Japan no longer required for the purposes in-
tended shall be returned in accordance with mu-
tually agreed procedures.

The agreement concerning the purchase of agri-
cultural commodities lays the basis for the sale
to Japan of surplus American agricultural proj-
ects of a value not to exceed $50,000,000. Accord-
ing to this agreement, the United States will pay
dollars to purchase the products and Japan will
deposit a yen equivalent in the Bank of Japan in
favor of the United States. Under the terms of
the agreement on economic arrangements, 20 per-
cent of this deposit or not more than the yen
equivalent of $10,000,000 will be made available
by the United States in the form of yen grants
to Japan for the purpose of assisting Japanese de-
fense industry and for other purposes serving
to promote Japan's economic capacities. The re-
maining SO percent of this fund will be used by
the United States to procure goods and services in
Japan in supiJort of the Military Assistance Pro-
gram. The agreement concerning investment
guaranties is desigiied to provide certain safe-
guards to American businessmen in an effort to
stimulate investments in Japan.

These agreements will be submitted to the Diet
for its action and will enter into force when the
United States is notified of Japan's ratification
or approval of the agreements.

STATEMENT BY AMBASSADOR ALLISON

Press release 119 dated March S

We are about to sign today a mutual defense
assistance agreement and three allied agreements.
Those officers in both our Governments who have
been arduously engaged for so long in the details
of these negotiations deserve our thanks and
congratulations.

There are two points which at the very begin-
ning I wish to emphasize. One is that these are
mutual agreements and secondly, that they are
the result of 8 months of negotiations. These
two facts are interrelated. If these were not
mutual agreements, freely entered into, there
would have been no necessity for 8 months of
negotiations. The very essence of the documents

518

Department of Sfofe Bulletin

we are signino; today is that they represent the
beliefs, both of the Japanese and American nego-
tiators, that their signature will be in the mutual
interest of both our countries. These agreements
require our countries to assume mutual obligations
but they give our countries mutual benefits.

The Investment Guarantee Agreement will not
solve Japan's economic problems but it will help
in a modest way to encourage American capital
to come to Japan to build up your industry, pro-
vide more jobs for your workers, and develop
more expoi'ts to pay for the imports you must
have. That is your gain. Our benefit is not only
profit for individual firms, but, more important,
it represents a further step toward making the
Japanese economy strong, healthy, and independ-
ent of outside assistance or special dollar
expenditures.

The Purchase Agreement under section 550 -
and the companion Economic Arrangements
Agreement likewise serve both our interests. Un-
der them 500,000 tons of surplus wheat and 100,-
000 tons of surplus barley which our farmers and
a bountiful nature have produced, will be sold
on terms advantageous to Japan and without cost
to you in dollars. One of the benefits is that it
will help to tide you over the consequences of last
year's rice crop failure and flood disaster. The
yen which you pay us for this wheat will be
turned back to Japan to help build up your de-
fense industries and to purchase goods which will
enable the Japanese people and other free peoples
to defend themselves against the threat of Com-
munist imperialism. Thus these two agreements
also serve both our national interests.

The Mutual Defense Assistance Agreement is,
of course, the basic one. Since negotiations were
commenced last July there has been much public
and press discussion and debate in Japan about
this agreement. That is good. It is only as a
result of public discussion and debate that govern-
ments of free peoples can successfully hammer out
these policies which are in their own interest. It
is only the totalitarian governments which feel
they can make agreements and establish funda-
mental policies without the consent of the people
as voiced by their elected representatives.

However, in spite of the public discussion given
to this subject, I am afraid there is still in some
quarters misunderstanding and a reluctance to
accept the plain facts of the case. In spite of
M'hat has been and is still being said, you will look
in vain for any requirement in the Mutual Defense
Assistance Agreement that Japan send its young
men abroad. You will look in vain for any re-
quirement that Japan take any action to which its
Government does not of its own free will agi'ee.
Let me quote again from a statement by Secretary
of State Dulles made just before our negotiations

^ For text of sec. G.oO of the Mutual Security Act, see
Bulletin of Nov. 9, 1953, p. 639.

opened last July and which I referred to in my
remarks at that time. In speaking of the mutual
security program for Japan, Secretary Dulles said
that it would be "purely of a defensive nature,
directed exclusively toward contributing to the
defense and internal security of the Japanese
homeland".^

Another prevalent misconception is that by
signing this agreement Japan subordinates eco-
nomic rehabilitation of its people to a purely mili-
tary effort. Here again let me recall what I
pointed out 8 months ago when I quoted President
Eisenhower's message of May 5 last year in which
he presented the mutual security program to the
Congi-ess. The President stressed certain con-
clusions about this program which I believe are
fundamental and of great importance. He said : ^

The United States and our partners throughout the
world must stand ready, for many years if necessary, to
build and maintain adequate defenses.

To accomplish this objective we must avoid so rapid
a military buildup that we seriously dislocate our econo-
mies. Militar.y strength is most effective — indeed it can
be maintained — only if it rests on a solid economic base.

We must help the free nations to help themselves in
eradicating conditions which corrode and destroy the
will for freedom and democracy from within.

I felt it necessary, Mr. Minister, to recall these
previous statements in order to make clear that
America's i^urpose in concluding these agreements
has been consistent and enlightened. In a specific
sense these agreements are for the purpose of help-
ing Japan undertake a larger share of its own
defense. This agreement takes us one step nearer
the time when the Japanese people will not need
to rely on American forces for protection. It takes
us one step nearer the time when the United States
can withdraw its forces from Japan. The great-
est contribution Japan can make to the security
of the free world is to strengthen her own security
and be in a position to assure her own people that
they will be able to live and develop their own
ideas and their own culture in their own way and
not become subject to an alien dictatorship. A
strong, free, and enlightened Japan can contribute
much to the peace and stability of Asia and the
world. It is my belief that these agreements we
are signing today will contribute toward the build-
ing of such a Japan.

It is also important, I believe, to point out that
this agreement is not unique, but that in signing
it the Japanese Government is following a pattern
already set by many countries in all parts of the
world. The United States has entered into these
agreements in order to assist in building up eco-
nomic power and defensive strength of friendly
nations. Slowly but surely — through their own
efforts and with some help from us — the nations
which treasure their national independence are
strengthening their econonuc foundations and
creating the means of defending themselves

" Bulletin of July 20, 1953, p. 91.
'Ibid, May 25, 1053, p. 735.

April 5, J 954

519

against the danger of aggression. This is the
simple meaning and purpose of this ceremony
today.

Mr. Minister, I consider it indeed a great privi-
lege to be able to represent my Government on this
historic occasion. I can also assure you, Mr.
Minister, that I shall always ti'easure this moment
as a true indication of the ever-increasing friend-
ship between our peoples and of cooperation be-
tween our nations.

OFFICIAL TEXTS OF AGREEMENTS

Mutual Defense Assistance Agreement Between
the United States of America and Japan

The Government of the United States of America and
the Government of .Japan,

Desiring to foster international peace and security,
within the franieworlv of the Charter of the United Na-
tions, through voluntary arrangements which will further
the ability of nations dedicated to the purposes and prin-
ciples of the Charter to develop effective measures for
individual and collective self-defense in support of those
purposes and principles ;

Reaffirming their belief as stated in the Treaty of Peace
with Japan signed at the city of San Francisco on Sep-
tember 8, 1951 that Japan as a sovereign nation possesses
the inherent right of individual or collective self-defense
referred to in Article 51 of the Charter of the United
Nations ;

Recalling the preamble of the Security Treaty between
the United States of America and Japan, signed at the
city of San Francisco on September 8, 1951, to the effect
that the United States of America, in the interest of peace
and security, would maintain certain of its armed forces
in and al)out Japan us a provisional arrangement in the
expectation that Japan will itself increasingly assume
responsibility for its own defense against direct and indi-
rect aggression, always avoiding any armament which
could be an offensive threat or serve other than to pro-
mote peace and security in accordance with the purposes
and principles of the Charter of the United Nations ;

Recognizing that, in the planning of a defense assistance
program for Japan, economic stability will be an essential
element for consideration in the development of its de-
fense capacities, and that Japan can contribute only to
the extent permitted by its general economic condition
and capacities ;

Taking into consideration the support that the Gov-
ernment of the United States of America has brought to
these principles by enacting the Mutual Defense Assistance
Act of 1949, as amended, and the Mutual Security Act
of 1951, as amended, which provide for the furnishing of
defense assistance by the United States of America in
furtherance of the objectives referred to above; and

Desiring to set forth the conditions wiiich will govern
the furnishing of such assistance ;

Have agreed as follows :

Abticle I

1. Each Government, consistently with the principle
that economic stability is essential to international peace
and security, will make available to the other and to
such other governments as the two Governments signatory
to the present Agreement may in each case agree upon,
such equipment, materials, services, or other assistance
as the Government furnishing such assistance may au-
thorize, in accordance with such detailed arrangements
as may be made between them. The furnishing and use
of any such assistance as may be authorized by either

Government shall be consistent with the Charter of the
United Nations. Such assistance as may be made avail-
able by the Government of the United States of America
pursuant to the present x\greenient will be furnished
under those provisions, and subject to all of those terms,
conditions and termination provisions of the Mutual De-
fense Assistance Act of 1949, the Mutual Security Act of
1951, acts amendatory and supplementary thereto, and
appropriation acts thereunder which may affect the fur-
nishing of such assistance.

2. Each Government will make effective use of assist-
ance received pursuant to the present Agreement for the
purposes of promoting peace and security in a manner
that is satisfactory to both Governments, and neither
Government, without the prior consent of the other, will
devote such assistance to any other purpose.

3. Each Government will offer for return to the other,
in accordance with terms, conditions and procedures
mutually agreed upon, equipment or materials furnished
inider the present Agreement, except equipment and ma-
terials furnished on terms requiring reimbursement, and
no longer required for the purposes for which it was
originally made available.

4. In the interest of common security, each Govern-
ment undertakes not to transfer to any person not an
officer or agent of such Government, or to any other gov-
ernment, title to or possession of any equipment, mate-
rials, or services received pursuant to the present Agree-
ment, without the prior consent of the Government which
furnished such assistance.

Article II

In conformity with the principle of mutual aid, the
Government of Japan agrees to facilitate the production
and transfer to the Government of the United States of
America for such period of time, in such quantities and
upon such terms and conditions as may be agreed upon
of raw and semi-processed materials required by the
United States of America as a result of deficiencies or
potential deficiencies in its own resources, and which
may be available in Japan. Arrangements for such trans-
fers shall give due regard to requirements for domestic
use and commercial export as determined by the Govern-
ment of Japan.

Article III

1. Each Government will take such security measures
as may be agreed upon between the two Governments
in order to prevent the disclosure or compromise of
classified articles, services or information furnished by
the other Government pursuant to the present Agree-
ment.

2. Each Government will take apjiropriate measures
consistent with security to keep the public informed of
operations under the present Agreement.

Article IV

The two Governments will, upon the request of either
of them, make appropriate arrangements providing for the
methods and terms of the exchange of indu.strial property
rights and technical information for defense which will
expedite such exchange and at the same time protect
private interests and maintain security safeguards.

Article V

The two Governments will consult for the purpose of
establishing procedures whereby the Government of Japan
will so deposit, segregate, or assure title to all funds allo-
cated to or derived from any programs of assistance
undertaken by the Government of the United States of
America so that such funds shall not be subject to gar-
nishment, attachment, seizure or other legal process by
any person, firm, agency, corporation, organization or
government, when the Government of Japan is advised by
the Government of the United States of America that
any such legal process would interfere with the attain-
ment of the objectives of the program of assistance.

520

Department of State Bulletin

I

Article VI

1. The Government of Japan will grant

a. Exemption from duties and internal taxation
upon importation or exportation to materials, sup-
plies or equipment imported into or exported from
its territory under the present Agreement or any
similar agreement between the Government of the
United States of America and the Government of
any other country receiving assistance, except as
otherwise agreed to ; and

b. Exemption from and refund of Japanese taxes, as
enumerated in the attached Annex E, so far as
they may affect expenditures of or financed by
the Government of the United States of America
elit'ected in Japan for procurement of materials,
supplies, equipment and services under the present
Agreement or any similar agreement between the
Government of the United States of America and
the Government of any other country receiving
assistance.

2. Exemption from duties and exemption from and
refund of Japanese taxes as enumerated in the attached
Annex E will apply, in addition, to any other expenditures
of or financed by the Government of the United States of
America for materials, supplies, equipment and services
for mutual defense, including expenditures made In con-
formity with the Security Treaty between the United
States of America and Japan or any foreign aid program
of the Government of the United States of America under
the Mutual Security Act of 1951, as amended, or any
acts supplementary, amendatory or successory thereto.

Article VII

1. The Government of Japan agrees to receive personnel
of the Government of the United States of America who
will discharge in the territory of Japan the responsibilities
of the latter Government regarding equipment, materials,
and services furnished under the present Agreement, and
who will be accorded facilities to observe the progress
of the assistance furnished by the Government of the
United States of America under the present Agreement.
Such perscmnel who are nationals of the United States
of America, including personnel temporarily assigned,
will, in their relationships with the Government of Japan,
operate as 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 privileges
and immunities as are accorded to other personnel with
corresponding rank in the Embassy of the United States
of America.

2. The Government of Japan will make available, from
time to time, to the Government of the Ignited States
of America funds in yen for the administrative and re-
lated expenses of the latter Government in connection with
carrying out the present Agreement.

Articlk VIII

The Government of Japan, reaflJrming its determina-
tion to .ioin in promoting international understanding ami
good will, and maintaining world peace, to take such
action as may be mutually agreed upon to eliminate
causes of international tension, and to fulfill the military
obligations which the Government of Japan has assumed
under the Security Treaty between the United States of
America and Japan, will make, consistent with the politi-
cal and economic stability of Japan, the full contribution
permitted by its manpower, resources, facilities and gen-
eral economic condition to the development and mainte-
nance of its own defensive strength and the defensive
strength of the free world, take all reasonable measures
which may be nt>eded to develop its defense capacities,
and take appropriate steps to ensure the effective utiliza-
tion of any assistance provided by the Government of the
United States of America.

Article IX

1. Nothing contained in the present Agreement shall be
construed to alter or otherwise modify the Security Treaty
between the United States of America and Japan or any
arrangements concluded thereunder.

2. The present Agreement will be implemented by each
Government in accordance with the constitutional pro-
visions of the respective countries.

Article X

1. The two Governments will, upon the request of either
of them, consult regarding any matter relating to the ap-
plication of the present Agreement or to operations or
arrangements carried out pursuant to the present
Agreement.

2. The terms of the present Agreement may be reviewed
at the request of either of the two Governments or
amended by agreement between them at any time.

Article XI

1. The present Agreement shall come into force on the
date of receipt by the Government of the United States
of America of a written notice from the Government of
Japan of ratification of the Agreement by Japan.

2. The present Agreement will thereafter continue in
force until one year after the date of receipt by either
Government of a written notice of the intention of the
other to terminate it, provided that the provisions of
Article I, paragraphs 2, 3 and 4, and arrangements entered
into under Article III, paragraph 1 and Article IV shall
remain in force unless otherwise agreed by the two Gov-
ernments.

3. The Annexes to the present Agreement shall form an
integral part thereof.

4. The present Agreement shall be registered with the
Secretariat of the United Nations.

In witness whereof the representatives of the two
Governments, duly authorized for the purpose, have signed
the present Agreement.

Done In duplicate, in the English and Japanese lan-
guages, both equally authentic, at Tokyo, this eighth day
of March, one thousand nine hundred fifty-four.

For the United States of America :

John M. Allison
For Japan :

Katsuo Okazaki

Annex A

In carrying out the present Agreement, the Government
of the United States of America will give every considera-
tion, to the extent that other factors will permit, to pro-
curement in Japan of supplies and equipment to be made
available to Japan, as well as to other countries, where
feasible, and to providing information to and facilitating
the training of technicians from Japan's defense-produc-
tion industries. In this connection, representatives of the
Government of Japan stated that the development of
Japan's defense capacities will greatly bo facilitated If
the Government of the United States of America will give
consideration to assisting in the financing of Japan's
defense-production industries.

The two Government.s recognize the advisability of
establishing adequate liaison between them to facilitate
procurement by the Government of the United States of
America in Japan.

Annex B

The security measures which the Government of Japan
agrees to take pursuant to Article III, paragraph 1 will
be such as would guarantee the same degree of security
and protection as provided in the United States of
America, and no disclosure to any person not an officer
or agent of the Government of Japan of classified articles,
services or information accepted by Japan, will be made

April 5, 1954

521

without the prior consent of tiie Government of the
United States of America.

Annex C

The two Governments recognize the benefits to be de-
rived from the principle of standardization, and agree to
the advisability of taljinp; feasible joint measures to
achieve that degree of standardization, with respect to
specifications and quality, which will promote the effec-
tive utilization and maintenance of any assistance
furnished imder the present Agreement.

Annex D

In the interest of common security, the Government of
Japan will cooperate with the Governments of the United
States of America and other peace-loving countries in
taking measures to control trade with nations which
threaten the maintenance of world peace.

Annex E

To effectuate Article VI, the Governments of the United
States of America and Japan agree as follows :

1. The .Japanese taxes referred to in Article VI, para-
graph lb and paragraph 2, are as follows :

a. Commodity tax ;

b. Travelling tax ;

c. Gasoline tax ;

d. Electricity and gas tax.

2. With respect to any present or future taxes of Japan
not specifically referred to in this Annex which might
be found to be applicable to the expenditures covered
by Article VI, the two Governments will agree upon
procedures for granting exemption and refund.

3. Exemption from duties and exemption from and re-
fund of Japanese taxes will be applied upon appro-
priate certification by the Government of the United
States of America.

4. Materials, supplies and equipment imported into or
procured by the Government of the United States of
America In Japan exempt from duties and taxes
under Article VI, shall not be disposed of In Japan
except as such disposal may be authorized by the
authorities of the United States of America and
Japan in accordance with mutually agreed conditions.

5. Nothing in Article VI, or this Annex shall be con-
strued to

a. Require exemption from import or export pro-
cedures provided for by the laws of Japan, or

b. Affect exemption from' duties and internal taxa-
tion provided for by the laws of Japan in accord-
ance with existing agreements and arrangements
such as the Administrative Agreement under
Article III of the Security Treaty between the
United States of America and Japan.

Annex F

1. With respect to the facilities to be accorded by the
Government of Japan to the personnel of the Govern-
ment of the United States of America who, pursuant to
Article VII of the present Agreement, will discharge in
Japan responsibilities of the Government of the United
States of America to observe the progress of assistance
furnished in pursuance of the present Agreement, the
two Governments agree that such facilities to be accorded
shall be reasonable and not unduly burdensome upon the
Government of Japan.

2. The two Governments agree that the number of
such personnel to be accorded diplomatic privileges will
be kept as low as possible.

3. It is imderstood between the two Governments that
the status of such personnel of the nationality of the

United States of America, considered part of the Diplo-
matic Mission of the Government of the United States of
America, will be the same as the status of personnel of
corresponding rank of the Embassy of the United States
of America in Japan.

Such personnel will be divided into three categories :

a. Upon appropriate notification by the Government of
the United States of America, full diplomatic status will
be granted to the senior military member and the senior
Army, Navy and Air Force officer assigned thereto, and
to their respective immediate deputies.

b. The second category of personnel will enjoy privileges
and Immunities conferred by international custom to
certain categories of personnel of the Embassy of the
United States of America in Japan, such as the immunity
from civil and criminal jurisdiction of Japan, immunity
of official papers from search and seizure, right of free
egress, exemption from customs duties or similar taxes
or restrictions in resjiect of personally owned property
imported into Japan by such personnel for their personal
use and consumption, without prejudice to the existing
regulations on foreign exchange, exemption from internal
taxation by Japan upon salaries of such personnel.
Privileges and courtesies incident to diplomatic status
such as diplomatic automobile license plates. Inclusion on
the "Diplomatic List", and social courtesies may be
waived by the Government of the United States of
America for this category of personnel.

c. The third category of personal will receive the
same status as the clerical ijersonnel of the Embassy of
the United States of America in Jajwn.

Annex G

1. The two Governments agree to restrict to the min-
iiniun necessary the amount of expenses to be made avail-
able from time to time by the Government of Japan pur-
suant to Article VII.

2. The two Governments also agree that the Govern-
ment of Japan may, in lieu of meeting the expenses re-
ferred to in the preceding paragraph, make available
necessary and suitable real estate, equipment, supplies
and services.

3. The two Governments agree that, in consideration of
the contributions in kind to be made available by the
Government of Japan, the amount of yen to be made
available as a cash contribiition by the Government of
Japan for any Japanese fiscal year shall be as agreed upon
between the two Governments.

4. The contributions by the Government of .Japan will
be made available in accordance with arrangements as
may he agreed upon between the two Governments.

■I. The two Governments further agree that, in con-
sideration of the contributions in kind to be made avail-
able by the Government of Japan during the initial period
from the date of coming into force of the present Agree-
ment to March 31, 195.5, the amount of cash contributions
by the Government of Japan for such period shall not
exceed Three Hundred Fifty-Seven Million Three Hundred
Thousand Ten (¥357,300,000).

Arrangements for Return of Equipment Under Ar-
ticle I of the Mutual Defense Assistance Agree-
ment Between the United States of America
and Japan

The flovernmont of the United States of America and
the Government of Japan agree to the following arrange-
ments under the Mutual Defense Assistance Agreement
between the two countries signed today, respecting the
disposition of equipment and materials furnished by the
Government of the United States of America mider the
said Agreement, and no longer required for the purposes
for which originally made available:

522

Deparfment of Stafe Bulletin

1. The Government of Japan will report to the Gov-
ernment of the United States of America, through the
Military Assistance Advisory Group, such equipment and
materials furnished under end item programs as are no
longer required in the furtherance of the Mutual Defense
Assistance Agreement between the United States of
America and Japan. The Military Assistance Advisory
Group shall not be precluded from drawing to the atten-
tion of the authorities of the Government of Japan any
equipment or materials which the Military Assistance
Advisory Group considers to be within paragraph 3 of
Article I of the said Agreement and when so notified
the Government of Japan will enter into consultation
with the Government of the United States of America
concerning the return to the Government of the United
States of America of such equipment and materials in
accordance with procedures set forth in the following
paragraphs.

2. The Government of the United States of America
may accept title to such equipment and materials for
transfer to a third country or for such other disposition
as may be made by the Government of the United States
of America.

3. When title is accepted by the Government of the
United States of America, such equipment and materials
will be delivered free alongside ship at a Japanese port
in case ocean shipment is required, or free on board in-
land carrier at a shipping point in Japan designated
by the Military Assistance Advisory Group in the event
ocean shipping" is not required, or, in the case of flight-
deliverable aircraft, at such airfield in Japan as may
be designated by the Military Assistance Advisory Group.

4. Such equipment and materials reported no longer
required by the Government of Japan and not accepted
by the Government of the United States of America for
redistribution or return will be disposed of as may be
agreed between the Governments of the United States of
America and Japan.

5. Any salvage or scrap from equipment and materials
furnished under the Mutual Defense Assistance Agree-
ment shall be reported to the Government of the United
States of America in accordance with paragraph 1 and
shall be disposed of in accordance with paragraphs 2, 3
and 4 of the present Arrangements. Salvage or scrap
which is not accepted by the Government of the United
States of America will be used to support the defense
effort of Japan or of other countries to which military
assistance is being furnished by the Government of the
United States of America.

In witness whekeof the representatives of the two
Governments, duly authorized for the purpose, have
signed the present Arrangements.

Done In duplicate, in the English and Japanese lan-
guages, both equally authentic, at Tokyo, this eighth
day of March, one thousand nine hundred fifty-four.

For the Government of the United States of America :

John M. Allison
For the Government of Japan :

Katsuo Okazaki

Agreement Between the United States of
America and Japan Regarding the Purchase of
Agricultural Commodities

The Government of tlie United States of America and
the Government of Japan :

Considering the mutual benefits to be derived from the
sale by the United Sttites of America and the purchase
by Japan of United States surplus agricultural com-
modities under the provisions of Section 550 of the
Mutual Security Act of 1951, as amended ; and

Desiring to set forth the necessary arrangements there-
for:

Have agreed as follows :

April 5, 1954

Article I

The two Governments will endeavor to enter into trans-
actions pursuant to Section 550 of the Mutual Security
Act of 1951, as amended, aggregating Fifty Million United
States Dollars ($50,000,000) during the current United
States fiscal year ending June 30, 1954.

Article II

The particular commodities to be purchased and the
terms of particular transactions shall be agreed upon
between the two Governments from time to time in ac-
cordance with procedures established for the Govern-
ment of the United States of America by the Foreign
Operations Administration.

Article III

It is understood that the procurement and utilization
of the commodities which may be obtained pursuant to
this agreement will not cause displacement of or sub-
stitution for usual marketings of the United States of
America or of other friendly countries.

Article IV

The Government of the United States of America shall
disburse the United States dollars required for the pur-
chases referred to in Article II, and the Government of
Japan shall, upon notification of such dollar disburse-
ments, deposit the yen equivalent in a special account
of the Government of the United States of America to be
established in the Bank of Japan.

Article V

The rate of exchange of United States dollars to yen
to be deposited shall be the official par value established
by the Government of Japan with respect to United States
dollars prevailing at the time of the receipt of each notifi-
cation referred to in Article IV, provided there are no
multiple official basic rates of exchange.

Article VI

Detailed arrangements necessary for the operation of
this Agreement shall be agreed upon between the two
Governments.

Article VII

This Agreement shall enter into force on the date of
receipt by the Government of the United States of
America of a note from the Government of Japan stating
that Japan has approved the Agreement in accordance
with its legal procedures.

In witness whereof the representatives of the two
Governments, duly authorized for the purpose, have signed
this Agreement.

Done in duplicate, in the English and Japanese lan-
guages, both equally authentic, at Tokyo, this eighth day
of March, one thousand nine hundred tifty-four.

For the United States of America :

John M. Allison
For Japan:

Katsuo Okazaki

Agreed Official Minutes With Respect to the Agree-
ment Between the United States of America and
Japan Regarding the Purchase of Agricultural
Commodities

It is understood that the words "basic rates" in the
phrase "provided there are no multiple official basic rates
of exchange" in Article V are employed to distinguish
such a rate from the ordinary rates utilized in the buying
and selling of exchange.

523

Minister for Foreign Affairs
of Japan :

Katsuo Okazaki

Ambassador Extraordinary
and Plenipotentiary of
tlie United States of
America to Japan :

John M. Allison

Tokyo, March S, 195^

Agreement Between Japan and the United States of
America Regarding the Guaranty of Investments

Tlie Government of tlie United States of America and
the Government of Japan :

Recognizing that economic benefits will accrue to the
United States of America and Japan from the guaranties
by the United States of America of private investments
which may be made in Japan by nationals of the United
States of America pursuant to the provisions of Section
111 (b) (3) of the Economic Cooperation Act of 1948, as
amended : and

Desiring to set forth the understandings concerning
such guaranties ;

Have agreed as follows :

Article I

The Government of the United States of America and
the Government of Japan will, upon the request of either
Government, consult respecting projects in Japan proposed
by nationals of the United States of America with regard
to which guaranties under Section 111 (b) (3) of the
Economic Cooperation Act of 1948, as amended, may
be made or are under consideration.

Article II

With respect to guaranties extended by the Government
of the United States of America in accordance with the
provisions of the Section referred to in Article I to projects
which are approved by the Government of Japan, the
Government of Japan agrees :

(1) That if the Government of the United States of
America makes payment in United States dollars to any
person under any such guaranty, the Government of
Japan will recognize the transfer to the Government of
the United States of America of any right, title or in-
terest of such person in assets, currency, credits, or other
property on account of which such payment was made
and the subrogation of the Government of the United
States of America to any claim or cause of action of such
person arising in connection therewith. The Govern-
ment of Japan 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 received from the Government of Japan ;

(2) That yen amounts acquired by the Government of
the United States of America pursuant to such guaranties
shall be accorded treatment not less favorable than that
accorded, at the time of such acquisition, to private funds
arising from transactions of United States nationals which
are comparable to the transactions covered by such guaran-
ties, and that such yen amounts may be used without re-
striction by the Government of the United States of
America for non-military administrative expenditures;

(3) That any claim against the Government of Japan
to which the Government of the United States of America
may be subrogated as the result of any payment under
such a guaranty, shall be the subject of direct negotiations
between the two Governments. If, within a reasonable
period, they are unalile to settle the claim by agreement,
it shall be referred for final and binding determination to
a sole arbitrator selected by mutual agreement. If the
Governments 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 Inter-
national Court of Justice at the request of either Govern-
ment.

Article III

This Agreement shall enter into force on the date of
receipt by the Government of the United States of America
of a note from the Government of Japan stating that Japan
has approved the Agreement in accordance with its legal
procedures.

In witness whereof the representatives of the two
Governments, duly authorized for the purpose, have signed
this Agreement.

Done In duplicate, in the English and Japanese lan-
guages, both etjually authentic, at Tokyo, this eighth day
of March, one thou.sand nine hundred fifty-four.

For the United States of America :

John M. Allison
For Japan :

Katsuo Okazaki

Agreement Between the United States of America
and Japan on Economic Arrangements

The Government of the United States of America and
the Government of Japan :

Having concluded an agreement for the purchase of
agricultural commodities pursuant to Section 550 of the
Mutual Security Act of 1951, as amended ;

Recognizing that economic stability is essential to inter-
national peace and security;

Considering that the Government of the United States
of America is prepared, under this agreement, to utilize
yen funds resulting from the aforesaid purchase of agri-
cultural commodities for the purpose of assisting in the
development of the industrial production and economic
potential of Japan ; and

Recognizing that encouragement of private investments
in Japan by nationals of the United States of America
would also serve the above purpose ;

Have agreed as follows :

Aeticle I

The Government of the United States of America shall,
subject to the terms and conditions of any applicable
United States legislation, use the yen funds to be deposited
in tlie special account established in accordance with the
provisions of Article IV of the Agreement between the
United States of America and Japan regarding the Pur-
chase of Agricultural Commodities, signe<l at Tokyo on
March 8, 1954, for the following purposes :

(1) The Government of the United States of America
will make grants of yen from this account to the Govern-
ment of Japan subject to such terms as may be mutually
agreed upon for assistance to Japanese industry and for
other purposes serving to promote Japan's economic ca-
pabilities. Such grants shall aggregate 20 percent of the
total deposits in the account resulting from transactions
entered into under the aforesaid Agreement, but not to
exceed the yen equivalent of Ten Million United States
Dollars ($10,000,000).

(2) The Government of the United States of America
may use the remainder of such yen funds without re-
strictions for the procurement of goods and services in
Japan in support of military assistance programs of the
United States of America.

Article II

The Government of Japan shall establish a special ac-
count in which will be deposited yen resulting from grants
made available by the Government of the United States
of America to the Government of Japan.

Article III

It is agreed that the guaranties by the United States
of America of private investments which may be made in
Japan by nationals of the United States of America pur-

524

Department of State Bulletin

suant to the provisions of Section 111 (b) (3) of the
Economic Cooperation Act of 1948, as amended, would
encourage such investments and contribute to the pro-
motion of the purposes of this Agreement.

Article IV

Detailed arrangements which may be necessar.v for
the operation of this Agreement shall be agreed upon be-
tween the two Governments.

Article V

This Agreement shall enter into force on the date of
receipt by the Government of the United States of America
of a note from the Government of Japan stating that
Japan has approved the Agreement in accordance with its
legal procedures.

In witness wheueof the representatives of the two
Governments, duly authorized for the purpose, have
signed this Agreement.

Done in duplicate, in the English and Japanese lan-
guages, both equally authentic, at Tokyo, this eighth day
of March, one thousand nine hundred flfty-four.

For the United States of America :

John M. Allison
For Japan :

Katsuo Okazaki

Agreed Official Minutes With Respect to the Agree-
ment Between the United States of America
and Japan on Economic Arrangements

It is understood that the term "without restrictions"
in Article I, paragraiili (2), shall be interpreted, for the
purposes of this Agreement, to mean without restrictions
as to the method of utilization of such yen funds not to
exceed the equivalent of 40 million United States dollars.
It is further understood that, in such utilization, due
regard shall be paid by the Government of the United
States of America in consultation with the Government of
Japan to the requirements of Japan for domestic use and
commercial exports.

Ambassador Extraordinary and
Plenipotentiary of the United
States of America to Japan:

John M. Allison
Tokyo, March 8, 1951,

Minister for Foreign
Affairs of Japan :

Katsuo Okazaki

TREATY INFORMATION

Current Actions

MULTILATERAL
Commodities — Sugar

International sugar agreement. Done at London under
date of Oct. 1, 1953.
Katifications deposited: Australia, Dec. 14, 19.03; Cuba,

Dec. 16, 1953; United Kingdom, Dec. 12, 1953.
Accession deposited: Hungary, Dec. 18, 1953.'

Notifications of intention to ratify, accept, or accede hefore
May 1, 11)5!,:

1955

United States December 15'

Belgium November 19

Brazil December 19

China December 12

Czechoslovakia December IS

Dominican Republic December 12

France December 11

Federal Republic of Germany . . . December 11

Haiti December 15

Japan December 15

Lebanon December 15

Mexico December 10

Netherlands December 10

Philippines November 25

Poland December 18

Portugal December 14

Union of South Africa December 15

U.S.S.R December 18

Entered into force provisionally Dec. 18, 1953 (for ar-
ticles 1, 2, 18, and 27— tG, inclusive), and Jan. 1, 1954 (for
articles 3-17 and 19-26, inclusive).

Trade and Commerce

Declaration on the continued application of the sched-
ules to the General Agreement on Tariffs and Trade,
TIAS 2S80. Done at Geneva Oct. 24, 1953.
Simature: Australia, Feb. 23, 1954. Entered into force

for Australia Feb. 23, 19.54.

Third protocol of rectifications and modifications to
the texts of the schedules to the General Agreement on
Tariffs and Trade.' Done at Geneva Oct. 24, 1953.

Signature: Denmark, Jan. 27, 1954.

BILATERAL

Australia

Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on the
estates of deceased persons, TIAS 2903. Signed at
Washington May 14, 19.53. Ratifications exchanged at
Canberra Jan. 7, 1954. Entered into force Jan. 7, 1954.
Proclaimed by the President Jan. 20, 1954.

Canada

Convention for the preservation ot the halibut fishery of
the Northern Pacific Ocean and Bering Sea, TIAS 2900.
Signed at Ottawa Mar. 2, 1953. Entered into force Oct.
28, 1953. Proclaimed by the President Jan. 7, 1954.

Greece

Convention for the avoidance of double taxation and the
prevention of fl.scal eva.sion with respect to taxes on
tbe estates of deceased per-sons, TIAS 2901. Signed at
Athens Feb. 20, 19.'')(1. Entered into force Dec. 30, 1053.
Proclaimed by the President Jan. 15, 1954.

Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on
income, TIAS 2902. Signed at Athens Feb. 20, 1950.
Entered into force Dec. 30, 1953. I'roclaimed by the
President Jan. 15, 1954.

India

Agreement relating to air transport services, TIAS 1586.
Signed at New Delhi Nov. 14. 1946. Entered into force
Nov. 14, 1946.

With reservation.

April 5, J 954

' Not in force.

525

Notice of termination by India : Received by the United
States Jan. 14, 1954. To terminate 1 year from date
of receipt of notice.

Current U.N. Documents:
A Selected Bibliography ^

STATUS LISTS'

Agreement Revising and Renewing the International
Wheat Agreement

Open for signature at Washington from April 13 until April 27, 19W,
inclusive

Country

Canada

Cuba

Philippines

Ceylon

Iceland

Guatemala

Peru

Israel

Indonesia

Costa Rica

Ireland

Switzerland

Japan

United States of America .

Bolivia

Egypt

Norway

Portugal

Denmark

India

Dominican Republic . . .

Netherlands

New Zealand

Ecuador

El Salvador

Spain

Federal Republic of Ger-
many

Belgium

Haiti

Austria

Greece

Union of South Africa . .

Dnte of

deposit of

instrument

of acceptance

19.53
May 18
.Tune 30

13
13
14

July
July
July
Jul'y
July

July 11

July 13
JulV
July
Julv

Julv 14

July 14

July 1.5

July 15

Julv 22

Julv 24

July 24

Julv 272

July 27

Julv 2S

Julv 29

Julv 20

Julv 29

July 29

Julv 30

July 31

Julv 31

July 31

July 31

Aug. 1

Date of entry
into force

for parts 1.
S, i, and 5

1953

July 1.5

JulV 1.5

July 15

July 15

Julv 15

Julv 15

Julv 15

July 15

July 15

July 15

July 15

July 15

July 15

July 15

Julv 15

Julv 15

July 15

July 15

.July 15

Julv 15

July 15

July 15

Julv 15

July 15

Julv 15

July 15

July 15

Julv 15

Julv 15

July 15

July 15

July 15

Date of entry
into force
for part 2

1953
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
-'^ug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.

Aug.
Aug.
Aug.
Aug.
Aug.
Aug.

Country

Nicaragua

Jordan

State of Vatican City

Venezuela

Saudi Arabia ....

Lebanon

Australia

Liberia

Mexico

Panama

Korea

Date of de-
posit of in-
strument of
acceptance

1953
Sept. 11

Oct. 14
Oct. 19
Oct. 29
Oct. 31
Dee. 3
Dec. 30
Dec. 31

Date of de-
posit of in-
strument of
accession

1953

Sept- 17'
Sept. 30

Dec. 31

Date of en-
try into force

for parts 1 ,
2, S, 4, and 6

1953
Sept. 11
Sept. 17
Sept. 30
Oct. 14
Oct.
Oct.
Oct.
Dec.
Dec.
Dec.
Dec.

19
29
31
3
30
31
31

Security Council

Report by the Chief of Staff of the Truce Supervision
Organization to the Security Council pursuant to the
Council's Resolution of 24 November 1953 (S/3139/
Rev. 2). S/31S.3. 15 pp. mimeo.

Letter Date<l 15 February 1954 from the Permanent Rep-
resentative of Israel Addressed to the President of the
Security Council. S/3179, February 15, 1954. 6 pp.
mimeo.

Exchange of Correspondence Between the Secretary-
General and the Governments of the Hashemite King-
dom of the Jordan and Israel Regarding the Convoca-
tion of a Conference Under Article XII of the General
Armistice Agreement. S/31S0, February 19, 1954. 19
pp. mimeo.

General Assembly

The Promotion of Permanent Solutions for the Problems
of Refugees who are within the Competence of the
United Nations High Commissioner for Refugees.
A/AC.36/32. January 29, 1954. 22 pp. mimeo.

The Situation of the United Nations Refugee Emergency
Fund. A/AC.36/31, January 29, r.l54. 15 pp. mimeo.

United Nations Conciliation Commission for Palestine.
Thirteenth Progress Report (for the period from 28
November 1052 to 31 December 10.53). A/2629, Janu-
ary 4, 1954. 11 pp. mimeo.

The Korean Question. Cablegram Dated 9 January 1954
from the Minister for Foreign Affairs of the Central
People's Government of the People's Republic of China,
Addressed to the Secretar.v-General. A/2632, January
11, 10.54. 8 pp. mimeo.

The Korean Question. Cablegram dated 11 January 1954
from the Minister for Foreign Affairs of the Democratic
People's Republic of Korea. A/2633, January 14, 1954.
7 pp. mimeo.

The Korean Question. Communication dated 10 Janu-
ary 1054, addressed to the President of the General
Assembly by the Government of India. A/2634, Janu-
ary 18, 1954. 4 pp. mimeo.

Reconvening of the Eighth Session of the General As-
sembly. Note by the Secretary-General. A/2635, Jan-
uary 31, 1954. 22 pp. mimeo.

The Korean Question. Cablegram dated 29 January 1954
from the Minister for Foreign Affairs of the Central
People's Government of the People's Republic of China.
A/2636, January 29, 1954. 12 pp. mimeo.

Third Report on the Regime of the Territorial Sea.
A/CN.4/77, February 4, 19,54. 17 pp. mimeo.

Peace Observation Commission. Balkan Sub-Commis-
sion. Eighth Periodic Report of the United Nations Mil-
itary Observers in Greece. A/CN.7/SC.1/53, January
13, 19.54. 13 pp. mimeo.

Economic and Social Council

Annotations of Items on the Provisional Agenda for the
Seventeenth Session of the Economic and Social Council.
E/L.575, January 25, 1954. 8 pp. mimeo.

I As of Mar. 19. 1954.

^ Instrument of ratiflcatioii includes a statement.

' Printed materials ma.v be secured in the United States
from the International Documents Service, Columbia
University Press, 2960 Broadway, New York 27, N. T.
Other materials (mimeographed or processed documents)
may be consulte<l at certain designated libraries in the
United States.

526

Department of Slate Bulletin

International Organizations and Conferences

Calendar of Meetings^

Adjourned during March 1954

TJ.N. Petitions Committee (Trusteeship Council) New York Jan. 12-Mar. 5

International Exhibition on Low-Cost Housing New Delhi Jan. 20-Mar. 5

U.N. Trusteeship Council: 13th Session New York Jan. 28-Mar. 25

U.N. Standing Committee on Administrative Unions (Trusteeship New York Feb. 8- Mar. 5

Council).

Fag Working Party of Experts on Agricultural Surpluses Washington Feb. 23-Mar. 18

Ilo Governing Body: 124th Session Geneva Feb. 27-Mar. 13

Tenth Inter-American Conference Caracas Mar. 1-28

Unicef Executive Board and Program Committee New York Mar. 1-12

U.N. EcAFE Third Regional Conference of Statisticians New Delhi Mar. 1-13

International Exposition in Bogotd, Bogota Mar. 1-21

U.N. High Commissioner for Refugees: 4th Session of Advisory Geneva Mar. 2-3

Committee.

International Cinema Festival Mar del Plata (Argentina) . Mar. 6-16

U.N. Economic Commission for Europe: 9th Session Geneva Mar. 9-25

U.N. Technical Assistance Committee New York Mar. 15-24

Wmo Eastern Caribbean Hurricane Committee of Regional Associa- Port-of-Spain (Trinidad) . . Mar. 24-26

tion IV (North and Central America).

In Session as of March 31, 1954

IcAO Council: 21st Session Montreal

U.N. Human Rights Commission: 10th Session New York

IcAO Communications Division: 5th Session Montreal

UNESCO Executive Board: 37th Session Paris

Panama International Commercial Exposition Col6n

U.N. Commission on the Status of Women: 8th Session New York

Seventh International Film Festival Cannes

Fag Technical Meeting on Forest Grazing Rome

U.N. Economic and Social Council (Ecosoc): 1 7th Session . . . . New York

Feb.

2-

Feb.

23-

Mar.

9-

Mar.

10-

Mar.

20-

Mar.

22-

Mar

25-

Mar

29-

Mar

30-

Scheduled April 1-June 30, 1954

Second Meeting of the Provisional Committee of the Pan American Washington Apr. 5-

Highway Congress.

U.N. Statistical Commission: 8th Session Geneva Apr. 5-

Caribbean Trade Promotion Conference Port-of-Spain (Trinidad) . . Apr. 6-

Joint Ilo/Whg Committee on the Hygiene of Seafarers: 2d Session . Geneva Apr. 9-

Second International Congress on Irrigation and Drainage .... Algiers Apr. 12-

International Trade Fair of Milan Milan Apr. 12-

U.N. Commission on Narcotic Drugs: 9th Session New York Apr. 19-

IcEM Ad Hoc Committee on Permanent Staff Regulations .... Geneva Apr. 20-

IcAO Conference on Coordination of European Air Transport . . Strasbourg Apr. 21-

Fourth International Congress of Prehistoric and Protohistoric Madrid Apr. 21-

Sciences.

UNESCO Intergovernmental Conference on Protection of Cultural The Hague Apr. 21-

Property in the Event of Armed Conflict.

Paso E.xecutive Committee: 22d Meeting Washington Apr. 22-

IcEM Finance Subcommittee: 5th Session Geneva Apr. 23-

Nato: Ministerial Meeting of the North Atlantic Council .... Paris Apr. 23-

Lyon International Fair Lyon Apr. 24-

Korean Political Conference Geneva Apr. 26-

Intergovernmental Committee for European Migration: 7th Session . Geneva Apr. 26-

International Conference on Oil Pollution of the Sea and Coasts . . London Apr. 26-

International Exhibition of Industry Tehran May 1-

Upd Meeting of the Executive and Liaison Committee Lucerne May 3-

' Prepared in the Division of International Conferences Mar. 24, 1954. Asterisks indicate tentative dates and locations.
Following is a list of abbreviations: UN — United Nations; Fag — Food and Agriculture Organization; Ilo — International
Labor Organization; Unicef — United Nations Children's Fund; Ecafe — Economic Commission for Asia and the Far
East; Ecosoc — Economic and Social Council; Wmo — World Meteorological Organization; Icao — International Civil
Aviation Organization; Unesco — United Nations Educational, Scientific and Cultural Organization; Who — World Health
Organization; Icem — Intergovernmental Committee for European Migration; Paso — Pan American Sanitary Organiza-
tion; Nato — North Atlantic Treaty Organization; Upu — Universal Postal Union; Itu — International Telecommunica-
tion Union; Ece — Economic Commission for Europe; Cigke — Conference Internationale des Grands Reseaux Electriques.

April S, 1954 527

b

Calendar of Meetings — Continued

Scheduled April 1-June 30, 1954 — Continued

International Rubber Study Group; 11th Meeting

U.N. International Law Commission: 6th Session

U.N. EcAFE Inland Waterways Subcommittee: 2d Session ....

Seventh Assembly of the World Health Organization

International Sugar Council: 2d Session

American International Institute for the Protection of Childhood:
Annual Meeting of Directing Council.

Ilo Salaried Employees and Professional Workers Committee: 3d
Session.

IcA-O Special Middle East Regional Communications Meeting . . .

U.N. Conference on Customs Formalities for Temporary Importa-
tion of Private Vehicles and for Tourism.

Electric High Tension Systems (Cigre), International Conference
on: 15th Session.

International Fair of Navigation

Fag Mechanical Wood Technology: 3d Conference

U.N. EcAFE Regional Conference on Water Resource Development

Caribbean Commission: 18th Meeting

Ilo Governing Body: 125th Session

Who Executive Board: 14th Meeting

International Cotton Advisory Committee: 13th Plenary Meeting .

Eleventh International Ornithological Congress

Tenth International Congress of Agricultural and Food Industries .

Fao Technical Advisory Committee on Desert Locust Control . .

IcAO Assembly: 8th Session

Itu Administrative Council: 9th Session

Fourteenth International Congress of Actuaries

Ilo Conference: 37th Session

Fao Committee on Commodity Problems: 23d Session

UNESCO Intergovernmental Conference of Experts on Cultural Rela-
tions and Conventions.

Fifth Inter-American Travel Conference

Fourth Annual Meeting of the International Commission for North-
west Atlantic Fisheries.

U.N. EcE Conference on European Statisticians

U.N. Permanent Central Opium Board and Narcotic Drugs Super-
visory Body: 11th Joint Session.

IcAO Meteorology Division: 4th Session

Wmo Commission for Aeronautical Meteorology: 1st Session . . .

UNESCO Seminar on Educational and Cultural Television Program
Production.

U.N. Economic and Social Council (Ecosoc): 18th Session ....

Itu International Telegraph Consultative Committee (Ccit) :
Study Group XI.

Arte Bienniale, XXVIIth (International Art Exhibition)

International Wheat Council: 15th Session

Colombo May 3-

Geneva May 3-

Saigon May 3-

Geneva May 4-

London May 5-

Montevideo May 10-

Geneva May 10-

Island of Rhodes (Greece) . May 11-

New York May 11-

Paris May 12-

Naples May 15-

Paris May 17-

Tokyo May 17-

Belize (British Honduras) . . May 19-

Geneva May 24-

Geneva May 27-

Sao Paulo May 29-

Basel May 29-

Madrid May 30-

Rome May-
Montreal June 1-

Geneva June 1*-

Madrid June 2-

Geneva June 2-

Rome June 3-

Paris June 8-

Panama City June 10-

Halifax June 14-

Geneva June 14-

Geneva June 14-

Montreal June 15-

Montreal June 15-

London June 27-

Geneva June 29-

Geneva June 30-

Venice June-Oct.

London* June-

THE FOREIGN SERVICE

John P. Davies Case

News Conference Statement hy Secretary Dulles

Press release 153 dated March 23

The proper officials of the Department of State,
after examining the voluminous record in the
matter of John P. Davies, formulated a series of

528

questions to Mr. Davies, to which Mr. Davies has
replied. On the basis of the information now at
hand, I do not find it necessary to suspend Mr.
Davies. There are some matters bearing upon re-
liability which are susceptible of conflicting inter-
pretations and which seem to call for clarification
by testimony under oath by Mr. Davies and others.
In order to make this possible, I am asking that
from the roster maintained by the Civil Service
Commission a Security Hearing Board be desig-
nated to take testimony.

Such action as I have requested is taken on the
assumption that Mi'. Davies will voluntarily accept
the jurisdiction of the Security Hearing Board.

Mr. Davies continues his assigmnent as Coun-
selor of Embassy at Lima, Peru.

Department of State Bulletin

Eighth Foreign Service
Selection Boards Meet

PresB release 155 dated March 23

The Eiglith Foreign Service Selection Boards
convened in Washington for their initial joint
meeting on March 22. It is the responsibility of
the three Boards to evaluate the performance of
all members of the Foreign Service Officer Corps
for purposes of promotion and selection-out.

The members and observers were welcomed and
addressed by Gerald A. Drew, Director General
of the Foreign Service; Scott McLeod, Adminis-
trator, Bureau of Inspection, Security and Con-
sular Affairs; and George Wilson, Director of the
Office of Personnel.

A list of the membership, together with the ob-
servers, for each of the three Boards follows :

1954

EIGHTH FOREIGN SERVICE SELECTION BOARDS

Board A

John F. Simmons (Chair- FSO — Career Minister —
man). Chief of Protocol

George H. Butler FSO — Career M i n i s t e r —

Retired; former Ambassa-
dor to Dominican Republic

John J. Muccio FSO — Career M i n i s t e r —

Deputy Chairman of the
Inter-Departmental Com-
mittee on Relations with
Panama

Raymond C. Miller FSO — Career M i n i s t e r —

Chief, Foreign Service In-
spection Corps

H. Hamilton Hackney . . . Former Judne, Baltimore

City Juvenile Court

Oliver C. Short, L. H. D. . . Consultant on Personnel to

the Assistant Secretary of
Commerce for Administra-
tion

Observers

Department
ture.

of Agricul-

Department of Commerce

Robert B. Schwenger, Special
Assistant to the Assistant
Administrator for P'oreign
Service and Trade Pro-
grams

Lester M. Carson, Associate
Director, Projects and
Technical Data Division,
Office of Export Supply,
Bureau of Foreign Com-
merce
Department of Labor .... James F. Taylor, Chief, For-
eign Service Division, Office
of International Labor
Affairs

Board B

Arthur L. Richards (Chair- FSO— D i r e c t o r, Offire of
man). Greek, Turkish, and Ira-

nian Affairs, Bureau of
Near Eastern, South Asian
and African Affairs

Bernard Gufler FSO — Foreign Service In-
spector

Brewster H. Morris FSO — Officer in Charge of

German Political Affairs,
Bureau of European .Affairs

Charles W. Adair, Jr FSO— Nato Adviser, Office of

European Regional Affairs,
Bureau of European Affairs

William H. G. FitzGerald . Vice President and Treas-
urer, Metallurgical Re-
search and Development
C o m pan y, Commander
U.S.N., Retired

.4sher Hobson Professor of Agricultural

Economics, University of
Wisconsin

Observers

Department of Agricul- C. E. Michelson. Assistant to
ture. tlie Assistant Administra-

tor for Management

H. Douglas Keefe. Chief, Re-
porting Program and Re-
view Section, Foreign
Service Operations

Herman B. Byer, Assistant
Commissioner, Bureau of
Labor Statistics

Department of Commerce .

Department of Labor

Board C

Richard W. Byrd (Chair- FSO— Department of State
man). Adviser, Army War College

Gordon H. Mattison .... FSO — Foreign Service In-
spector

Fraser Wilkins FSO — Policy Planning Staff

Byron E. Blankinship . . . FSO — Officer in Charge

North Coast Affairs, Office
of South American Affairs,
Bureau of Inter-American
Affairs

George T. Brown Staff Member of the Ameri-
can Federation of Labor

James Sterling Murray . . Assistant to the President,

Lindsay Light and Chemi-
cal Company

Observers

Department
ture.

of Agricul-

Department of Commerce

Department of Labor

Carlos Ortega, Agricultur-
alist, Division of Interna-
tional Agricultural Organi-
zations

Grant Olson, Business Econ-
omist, European Division,
Bureau of Foreign Com-
merce

Margaret Sheridan, Depart-
ment of State Liaison
Officer, Foreign Service
Division, Office of Interna-
tional Labor Affairs

April 5, J 954

529

International Copyright Protection

Statement hy Thorsten V. Kalijarvi

Acting Assistant Secretary for Economic Affairs '

I am appearing in support of the identical bills
H. R. 6616 and H. R. 6670. This proposed meas-
ure to amend the Copyriglit Act was forwarded to
the Congi-ess last summer by the Secretary of
State as implementing legislation for the Univer-
sal Copyright Convention, which is now before
the Senate for its advice and consent to ratification.
A companion Senate bill, S. 2559, identical with
those before you, is before the Senate Judiciary
Committee.

Background

I should like first to comment on our present
outgrown and inadequate arrangements for inter-
national copyright protection. I shall then sum-
marize the benents to be derived from the Univer-
sal Copyright Convention, which, I am gratified
to say, has elicited enthusiastic support through-
out the United States from all those interested in
copyright protection abroad.

During the past 75 years there has been a vir-
tually complete transformation in the position
occupied by the United States in the literary,
scientific, and creative fields. From a pioneer
nation, importing far more than it exported in the
way of books, music, and other copyrightable ma-
terials, we have grown to a position of prestige and
leadership in this important cultural field. Amer-
ican novels and technical books are in constant
demand throughout the world, and our music and
movies are enjoyed everywhere.

This rapid growth in American literary, musi-
cal, and artistic creation and its international
recognition has sharply accentuated the need for
improved copyright protection abroad for Amer-
ican works. It is apparent, however, that the
legal bases on which such protection can be estab-
lished are not adequately supplied by our present
framework of international arrangements. The
Department believes that these needs can be fully

' JIade on Mar. 15 before Subcommittee No. 3 of the
Committee on the Judiciary of the House of Representa-
tives (press release 132).

530

met by adherence to the Universal Copyright Con-
vention. It is for this reason that the Secretary
of State and the President have urged its ratifica-
tion.

Our present system of international copyright
protection stems from legislation adopted shortly
before 1900. Before that time, we had no inter-
national aiTangements for this purpose. Our
paramount need had been to obtain free access to
foreign works. Protection of American works
abroad was sketchy and piracy of foreign works
here was rampant. This legislation permitted the
United States to begin the establishment of a series
of bilateral arrangements. This scheme of bi-
laterals, as modified through the years, represents
the principal foundation for our international
copyright relations. Reduced to its simplest
terms, our present law provides that the United
States will extend copyright protection to the na-
tionals of a foreign state when such state grants
to United States citizens copyright protection on
substantially the same basis as to its own citizens.
The law requires that in each case the President de-
termine by means of a proclamation that the nec-
essarj' reciprocal conditions exist. To form a
basis' for the issuance of the proclamation, the
State Department usually negotiates an exchange
of diplomatic notes to obtain the assurances of the
foreign state that it is granting "national treat-
ment" to citizens of the United States.

This bilateral system is not only complicated and
cumbersome but offers inadequate foreign protec-
tion to our nationals. Each arrangement requires
separate time-consuming negotiations. In addi-
tion, whenever the law in the foreign country is
changed, the arrangement must be reviewed and
new negotiations as well as the issuance of a new
proclamation may become necessary. The pro-
tection which it would provide our citizens, if they
had to rely solely upon it, would be ineffective and
costly. In order for an American national to ob-
tain protection abroad under this system, he would
have to know and comply with a large number of
technical requirements in the different countries in

Department of State Bulletin

which he desires protection, which would generally
make acquisition of protection on a broad basis an
impractical proposition.

It is fortunate for those Americans interested
in copyright protection abroad that nearly 40
countries of the free world are members of the
Bern convention of 1886. The United States has
not been able to join the Bern convention because
some of its basic provisions are incompatible with
the United States legal concepts of copyright.
Americans have been able to enjoy the multilateral
protection of the Bern convention by entering
what is called the "side door" of the convention.
To illustrate, an American publisher can get pro-
tection for a new book in all Bern countries by
issuing it in London or Toronto at the same time
he does so in New York. In effect the book gets
protection as a British or Canadian work.

However, there is widespread fear among copy-
right circles in this country that, if our copyright
relationships are not strengthened, this side door
will be closed to American authors. Indeed, pro-
visions of this convention permitting its membei's
to limit or deny convention protection to nationals
of nonconvention countries have recently been
strengthened. It is the Department's belief that
the reason no action has so far been taken under
these provisions is the pendency of the new Uni-
versal Copyright Convention.

In addition to the uncertain status of this side
door approach to protection in most of the major
countries, there are other respects in which our
copyright relations are unsatisfactory. There
are many countries in which we desire protection,
which are not members of Bern and which under
their law grant comparatively little protection to
foreign works. Many of these countries are un-
derdeveloped ones which feel a need for making
available to their nationals in their native tongues
foreign writings and culture. Special provisions
have been included in the Universal Copyright
Convention to meet this problem and to encourage
the adherence of such countries. It is to be noted,
as the Secretary of Stat« pointed out in his report
on the convention,- that some of these free-world
countries are in areas of the world bordering on
the Soviet bloc in which Communist propaganda
has its greatest impact. Improving our copyright
relations with such countries would be of signifi-
cant importance as a means of stimulating the
flow of books and other educational media to
them from the rest of the free world.

In the light of this situation, it can be fully
appreciated why there has been such strong sup-
port in the United States for a multilateral con-
vention in which the United States could partici-
pate, which would cement our relations in this
field with the rest of the free world.

Development of the Convention

The development of the Universal Convention
began shortly after the war. It is the result of
careful and thorough preparatory work. From
1947 to 1951 a series of experts meetings was held
to shape the broad outlines of the convention. The
people who participated in this preparatory work
were outstanding copyright specialists from a
iHunber of countries, drawn largely from the legal
profession. In the United States, this prepara-
tory work was closely coordinated with the copy-
right bar and other representatives of interested
groups as well as committees of the various bar
associations.

Finally, after extensive consultations with gov-
ernments, a draft was laid before the intergovern-
mental negotiating conference held at Geneva in
the summer of 1952, which adopted the final docu-
ment as transmitted by the President to the Senate
for its advice and consent to ratification. Many
of the same specialists who had participated in the
development work accompanied govennnental rep-
resentatives as members of delegations to this con-
ference. The United States delegation was
honored in having present in addition Represent-
ative Crumpacker and the former chairman of
your subcommittee, the late Mr. Bryson. Fifty
countries were present at the conference and 40
liave signed the convention. Incidentally, no
Soviet bloc country attended the conference or has
shown any interest in adhering to the convention.
I should like at this point to submit for the record
the list of the countries which have signed the
convention.^

Largely as a result of the thoroughness and care
with which it was drafted, this instrmnent is a
realistic, effective and relatively simple means of
eliminating the unsatisfactory conditions which
presently prevail and of increasing the scope and
effectiveness of our international copyright rela-
tions. Basically the convention provides for the
granting of national treatment. From the stand-
point of the United States author, it would pro-
vide him with a permanent and secure basis for
foreign copyright protection and a simple pro-
cedure for attaining this protection. He would
receive a higher standard of protection than is
presently afforded under the laws of some of the
less developed countries in such matters as the
number of years of protection and the conditions
under which translations of his work are made
into local language. He would be freed of the for-
mal requirements which burden him under the
bilateral system. When his work was published

" S. Exec. M, 83d Cong., 1st sess., p. 2.
April 5, J 954

' ['"'oUowin}: are the signatories to the convention:
Andorra, Argentina, Austnilia, Austria, IJelgium, Brazil.
Canada, ciiile, Cut)a, Denmark, El Salvador, Finland,
France, Germany, Guatemala, Haiti, Holy See, Honduras,
India, Ireland, Israel, Italy, .Japan, Liberia, Luxembourg,
Mexico, Monaco, Nellierlands, Nicaragua, Norway, Peru,
Portugal, San Marino. Spain, Sweden, Switzerland, United
Kingdom, United States, Uruguay, and Yugoslavia.

531

in this country with a copyright notice on it, it
would automatically receive protection in all the
other countries which are membere of the conven-
tion.

The Implementing Legislation

The Universal Convention is, by its terms, what
is generally called non-self-executing. Legisla-
tion by both Houses of Congress is needed in order
to make such changes in the United States law as
are necessary to implement the convention. The
bills before you would, with vei-y minor excep-
tions, make only such changes in the Copyright
Law as are necessary to bring it into full con-
formity with the terms of the convention. The
proposed legislation has been drafted with a view
to making the changes applicable only to foreign
countries which join the convention, and it would
not come into effect until the convention enters
into force with respect to the United States.

These changes would have the effect of exempt-
ing works of authors of convention countries or
works first published there from certain formal
provisions of the United States Copyright Law.
and of modifying the requirements for notice oi
reservation of copyright. I wish to comment on
only one of these changes — that relating to the
manufacturing requirement. Experts in the field
of copyright who will follow me will discuss the
remainder.

This so-called manufacturing clause means in
effect that a foreign author writing in English
can only obtain 5 years copyright protection in
this country unless his book is printed here.

Such a provision would not be too surprising in
the law of an underdeveloped country, but it is in-
congruous in the light of our present economic
position in this field. It is a carryover from the
days in the late 1800's when book manufacturing
in this country was an infant industry. Now,
however, we are a major exporter of printed mate-
rials. For example, in 1953 our expoi'ts of books
alone totaled over 24 million dollars — well over
twice the level of book imports.

The negotiation of the convention involved con-
siderable give and take in view of the differing
systems of copyright which it must bridge. A
number of countries, particularly the English-
speaking ones, made it clear to us during the
negotiations that one of the things they insisted
upon from us was modification of the manufactur-
ing clause with respect to ratifying countries.
They pointed out that they have been giving full
protection to American works and are receiving
only a very limited protection in return. We have
felt and continue to feel that their point of view
has considerable justification if we are to expect
to receive the protection from them which would
be provided by the convention.

The modification of the manufacturing clause
which is now being proposed is different in essen-

tial aspects fi-om previous bills to eliminate the
clause to which consideration has been given by
this Committee. The bills before you would waive
the manufacturing clause only as to foreign states
which adhere to the convention and would not
become effective as to them until they had done so.
Thus, in waiving the manufacturing clause as to
these countries, we would receive in each case a
substantial quid pro quo in the form of better
copyright protection. Not only would this im-
prove the position of all creators and usei-s of
copyrighted material, but it would have the veiy
important additional effect of contributing signif-
icantly to the maintenance and strengthening of
our growing foreign market for books and similar
materials.

No change in the manufacturing clause is, of
course, contemplated to permit American authors
to have their books printed abroad in quantity,
and no change would be made as to countries not
joining the convention.

Support for Multilateral Convention

As I have indicated previously, for a great many
years people in this country interested in im-
proved copyright protection abroad have been
convinced that the best solution for the difficulties
that presently beset the field of copyright is partic-
ipation in a multilateral convention which could
be adliered to by most of the free world. I !»-
lieve the importance of this convention from the
United States standpoint is amply attested to by
the widespread support which it has among au-
thors, composers, songwriters, and all tlie creative
artists, as well as among those who constitute the
media for public dissemination of their creations —
book and music publishers, and the radio, tele-
vision, and motion-picture industries. It has in
addition the endorsement of committees of the
leading bar associations and of the American Bar
Association itself.

In addition to its importance in establishing
satisfactory copyright protection abroad for
United States nationals, acceptance of this conven-
tion would materially improve our general foreign
relations with the rest of the free world. This is
so because this action would have a highly favor-
able impact on the intellectual and cultural groups
of other countries, particularly in Western Eu-
rope. The successful negotiation of the conven-
tion has been hailed in Europe as the beginning of
a new era in improved cultural relations.

In order that our citizens may have the full
benefits of copyright in foreign markets, and that
the United States may assume a position of leader-
ship in the field of international copyright, the
Department wholeheartedly recommends the en-
actment of this legislation.

532

Department of State Bulletin

Sale of Vessels to Brazil for
Coastwise Shipping Recommended

Statement hy Robert F. Woodtoard '

. . . The Secretary of State in his letter of
July 1, 1953, to the Speaker of the House set
forth tlie reasons why the Department believed
that such legislation was necessary. The bill au-
thorizes the sale of not more than 12 CI-MAV-1
type merchant vessels to Brazil for use in the coast-
wise trade to Brazil. The CI-MAV-1 type vessel
was designed for coastal operations.

The United States in cooperation with the Gov-
ernment of Brazil established in 1950 a Joint
Brazil-United States Economic Development
Commission, under congressional authorization
given by Public Law 535, the Act for International
Development, to assist Brazil in its development
planning and economic rehabilitation. One of the
projects which this Commission recommended was
the improvement of Brazil's coastal shipping.
The sale of the vessels covered by this bill would
not only assist in the economic rehabilitation of
Brazilian coastal shipping but would promote our
own national interest. The rehabilitation of
Brazil's coastal sliipping service is vital to Brazil's
internal economy, and since Brazil is a traditional
and important South i\jnerican ally of the United
States, its improved economic strength should add
to the defense potential of the Western Hemis-
phere.

Moreover, it may be pointed out that President
Vargas of Brazil has personally requested U.S.
cooperation in permitting Brazil to purchase
coastwise vessels from our laid-up fleet of war-
built vessels.

Brazil under the Sliips Sales Act of 1946 pur-
chased 12 vessels of the same type specified in this
bill and has continually indicated an interest
since that time in obtaining more vessels of this
type. In view of their experience with this type
of ship, which has been used principally in
coastal operations, it is the intention of the Bra-
zilian Government to add the vessels covered by
this bill to its coastal fleet.

Coastwise shipping is a vital link in Brazil's
transportation system because of its extensive
coastline, population concentration on the coast,
the lack of adequate highway and railroad sys-
tems. Brazil's internal economic progress de-
pends to a large extent upon improving its inade-
quate coastwise shipping fleet, which now contains
many vessels from 40 to 60 years old. An efficient
coastwise transport system should promote trade

'Made in support of H. R. (5317 before the Merchnnt
Marine and Fi.sherie.s Committee of the House of Uepre-
sentatives on Mar. 24 (press release 15S). Mr. Wood-
ward, Deputy Assi-stant Secretary for Inter-.\ineri<an
Affairs, testified as Acting Assistant Secretary.

among the various regions of Brazil. The objec-
tive of the Joint Commission's coastal shipping
program has been to provide Brazil with an effi-
cient, well-regulated coastal shipping service
which can meet the bulk freight demands of the
expanding Brazilian economy. This objective has
not as yet been achieved. The lack of adequate
transport, therefore, results in low production,
and this, in turn, is partially responsible for the
lack of transport. The logical way to correct this
situation is to assist Brazil in obtaining more effi-
cient means of coastal transportation.

The Joint Commission in making its recom-
mendations in its rehabilitation of the Brazilian
coastal fleet made the following comments :

Anyone who glances at a map can see that the Brazilian
economy is still largely made up of isolated areas scat-
tered along the coast. Some, it is true, penetrate to a
considerable depth but in general the situation is this
and it is clear that the cheapest and best means of dis-
tribution should be by water. Indeed, in many instances
distribution still has to be by water. Apart from the air
transport companies, shipping has no real competition
between North and South, and there are only weak rail
and road connections between the Central, Southern and
North Eastern regions.

Coastal shipping is, at present, the only truly
efficient national transportation system in Brazil,
linking the southern, central, and northern
regions, and in many cases is the only existing
connection between the various regions.

Brazil has remained more dependent upon
coastal shipping in interstate commerce than most
nations of continental dimensions. This is borne
out by the fact that coastal shipping carried 45
percent of the total interstate commerce tonnage
between 18 major political units ( 17 states and fed-
eral districts) which possess in Brazil ocean ports.

According to the Joint Brazil-United States
Economic Development Commission report, eight
states, six northern and two southern, with a pop-
ulation of over 20 million, depend upon coastal
shipping to carry between 74 and 99 i)ercent of
their total interstate commerce. These are the
states in which coastal shipping has an absolute
advantage, due either to the complete lack of com-
petitive means of transport or the poor condition
of that which does exist.

The states in the North (Para, Amazonas,
Maranhao, Ceara, Bahia, and Rio Grande de
Norte) are most dependent upon coastal shipping,
followed by the southern states of Santa Catarina
and Rio Grande do Sul.

As to the composition by commodity of Brazil's
coastal shipping traffic, the Joint Brazil-United
States Economic Development Commission re-
ported that the basic role of coastal shipping in the
transportation system of Brazil is a carrier of bulk
raw materials and foodstuffs. Api)roxiinately
55 percent of the total tonnage carried by coastal
ships consists of primary raw materials, 35 per-
cent of foodstuffs, and the remaining 10 percent of
manufactured items.

April 5, 1954

533

The 10 major commodities in Brazilian coastal
trade in terms of volume are, in descending order :
salt, coal, sugar, lumber, wheat, flour, rice, manioc
flour, wood manufactures, beverages and iron and
steel manufactures.

Brazil's coastal sliipping is largely concentrated
upon the transportation of bulk raw materials
from the North and the South to the consuming
and manufacturing centers of Rio and Sao Paulo,
and conversely transporting a smaller volume of
manufactured items from these centers to both
the North and the South. The second major func-
tion is the transportation of foodstuffs such as
wheat, rice, manioc, beans, and charque (jerked
beef) from the southern producing regions to the
central and northern consuming areas.

The present Brazilian coastal fleet is composed
of 307 vessels of 609,000 dead weight tons. Over
25 percent of the total tonnage is above 40 years
of age, and approximately 40 percent is more
than 30 years. The Brazilian coastal fleet is pri-
marily composed of obsolete vessels, and newer,
small, converted landing vessels. Less than 30
ships may be considered as large, modern, effi-
cient vessels specifically designed for the coastal
trade.

The fleet described above must serve a coastline
over 5,500 miles long with 33 major, and many
smaller, ports. There is no competitive trans-
portation between the northern and southern ex-
tremities of the coastline and only fair road and
rail communication between the central southern
and northeastern regions.

The bill under discussion provides that every
vessel sold and transferred shall be subject to an
agreement by the Government of Brazil that the
vessels whether under mortgage to the United
States or not shall not engage in international
trade or in other than the coastwise trade of
Brazil. Moreover, United States ships camiot
operate in the Brazilian coastal trade since Brazil
has coastal laws similar to ours in that regard.
Consequently, such vessels will not be in competi-
tion with vessels operated by United States ship-
ping lines operating to Brazil.

As I have indicated, the sale of these vessels
as authorized by this legislation would contribute
to the economic development of Brazil, serve the
foreign policy of the United States by strengthen-
ing and helping to unify a friendly country in
this hemisphere, and cannot adversely affect the
American Merchant Marine.

Current Legislation
83d Congress: 2d Session

Overseas Information Programs of the United States.
Final Report of tlie Committee on Foreign Relations
Pursuant to tlie Provisions of S. Res. 74, S2d Congress,
2d Session ; S. Res. 44, 83d Congress, 1st Session, and
S. Res. 117, 83d Congress, 1st Session, as Extended.
S. Kept. 936, February 10 (legislative day, February 8),
1954, 6 pp.

Mexican Farm Labor. Hearings before the House Com-
mittee on Agriculture on H. J. Res. 355. February 3,
5, 8, 9, 10, and 11, 1954, Serial V, 239 pp.

Mexican Agricultural Workers. Report to accompany
H. .r. Res. 3,->5. H. Rept. 1199, February 12, 1954, 9 pp.

Certain Cases in Which the Attorney General Has Sus-
pended Deportation. Report to accompany S. Con. Res.

60. S. Rept. 940, February 15 (legislative day, Febru-
ary 8), 1954, 2 pp.

Certain Cases in Which the Attorney General Has Sus-
pended Deixjrtation. Report to accompany S. Con. Res.

61. S. Rept. 941, February 15 (legislative day, Febru-
ary 8), 1954, 2 pp.

East-West Trade. Hearing before the Subcommittee on
P'oreign Economic Policy of the House Committee on
Foreign Affairs. February 16, 1954, III, 40 pp.

Atomic Energy Act of 1946. Message from tlie President
of the United States Transmitting Recommendations
Relative to the Atomic Energy Act of 1946. H. Doe. 328,
February 17, 1954, 8 pp.

Proposed Supplemental Appropriation to Pay Claims for
Damages, Audited Claims, and Judgments Rendered
Against the United States. Communication from the
President of the United States Transmitting a Pro-
posed Supplemental Appropriation to Pay Claims for
Damatjes, Audited Claims, and Judgments Rendered
Against the United States, as Provided by Various Laws,
in the Amount of $5,500,707, Together With Such
Amounts as May Be Necessary to Pay Indefinite Interest
and Costs and to Cover Increases in Rates of Exchange
as May Be Necessary to Pay Claims in Foreign Cur-
rency. H. Doc. 329, February 17, 1954, 67 pp.

Authorizing the Admission for Instruction at the Unitetl
States Military and Naval Academies of Citizens of the
Kingdoms of Thailand and Belgium. Report to ac-
company S. J. Res. 34. H. Rept. 1211, February 17,
1954, 6 pp.

Continuation of Mexican Farm Labor Program. Report
to accompany S. J. Res. 121. S. Rept. 985, February
17 (legislative day, February 8), 1954, 3 pp.

The Problem of the Veto in the United Nations Security
Council, Staff Study No. 1, Subcommittee on the United
Nations Charter of the Senate Committee on Foreign
Relations. February 19, 1954, 23 pp.

The St. Lawrence Seaway. Report of the House Com-
mittee on Public Works on S. 2150, a Bill Providing for
Creation of the St. Lawrence Seaway Development
Corporation to Construct Part of the St. Lawrence
Seaway in United States Territory and for Other Pur-
poses. H. Rept. 1215, February 19, 1954, 121 pp.

534

Deparfment of Sfafe BuUetin

April 5, 1954

Index

Vol. XXX, No. 771

Brazil. Sale of Vessels to Brazil for Coastwise Shipping

Recommended (Woodward) 533

Canada. U.S. and Canada Examine Common Economic

Problems (text of joint communique) 511

Congress, The

Current Letrislation 534

International Copyright Protection (Kalijarvi) . . . 530
The International Educational Exchange Program (12th

semiannual report) 499

Credence, Letters of. Paraguay (Velloso) 511

Economic Affairs

Sale of Vessels to Brazil for Coastwise Shipping Recom-
mended (Woodward) 533

U.S. and Canada Examine Common Economic Problems

(text of joint communique) 511

Educational Exchange. The International Educational B}x-

change Program (12th semiannual report) .... 499

Foreign Service

John P. Davies Case (Dulles) 52&

Eighth Foreign Service Selection Boards Meet .... 529

Germany

Allied Efforts To Restore Freedom of Movement in

Germany (texts of correspondence) 508

"Sovereignty" of East Germany (White) 511

Indochina. U.S. Views on Situation in Indochina

(Dulles) 512

International Information. International Copyright Pro-
tection (Kalijarvi) 530

International Organizations and Meetings. Calendar of

Meetings 527

Japan. U.S. and Japan Sign Mutual Defense Assistance
Agreement (texts of joint communique, statement,
and agreement) .'ilg

Military Affairs. U.S. Views on Situation in Indochina

(Dulles) 512

Mntaal Secarity. U.S. and Japan Sign Mutual Defense
.Assistance Agreement (texts of joint communique,
statement, and agreement) 518

Paraguay. Ambassador to U.S. (Velloso) 511

Protection of Nationals and Property. Allied Efforts To
Restore Freedom of Movement in Germany (texts of
correspondence) 508

Treaty Information

Current Actions 525

International Copyright Protection (Kalijarvi), . . . 530
U.S. and Japan Sign Mutual Defense Assistance Agree-
ment (texts of joint communique, statement, and

agreement) 518

United Nations. Current U.N. Documents 526

Name Index

Allison, John M 518

Conant, James B 508

Davies, John P 528

Dengin, Sergei 508

Dulles, Secretary 499, 512, 528

Kalijarvi, Thorsten V 530

Murphy, Robert 513

Semenov, Vladimir 508

Timberman, Thomas S 508

Velloso, Guillermo Encisco 511

White, Lincoln 511

Woodward, Robert F 53*

Check List of Department of State
Press Releases: March 22-28

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

Press releases issued prior to March 22 which ap-
pear in this issue of the Bulletin are Nos. 117 and
119 of March 8, 132 of March 15, 1-13 of March 17,
and 146 of March 18.

Subject

Radio discussions with Mexico
Trade relations with Philippines
Wheat to Afghanistan
Dulles: John P. Davies ca.se
Dulles: Indochinese situation
Foreign Service Selection Boards
Convictions in illegal arms case
Claims against CutDan Government
Woodward: Sale of vessels
Summary of Exchange Program report
Exchange Advisory Commission report
Note to Czechoslovakia
Paraguay: Letters of credence (re-
write)
Soviet lend-lease vessels
Patterson: U.N. Day Committee

*Not printed.

t Held for a later issue of the Bulletin.

No.

Date

*150

3/22

151

3/22

152

3/23

153

3/23

154

3/23

155

3/23

tl56

3/23

tl57

3/24

158

3/24

*159

3/24

160

3/24

161

3/25

162

3/26

1163

3/26

tl64

3/26

April 5, 1954

535

a. I. «evE>NiiciiT pmiiTiii* office, \tn

THE BERLIN CONFERENCE

the
Department

A meeting of the Foreign Ministers of the United States,
France, the United Kingdom, and the Soviet Union, John
Foster Dulles, Georges Bidault, Anthony Eden, and Vya-
cheslav Molotov, took place in Berlin between January 25
and February 18, 1954. The major problem facing the
Berlin Conference was that of Germany, Two publications
released in March record discussions at the Conference. . . .

Our Policy for Germany

This 29-page pamphlet is based on statements made by
John Foster Dulles, Secretary of State, at the Berlin meet-
ing. It discusses the problem of German unity, Germany
and European security, and the significance of the Berlin
Conference.

Publication 5408

15 cents

of
state

Foreign Ministers Meeting — Berlin Discussions
January 25-February 18, 1954

This publication of the record of the Berlin discussions
of the four Foreign Ministers is unusual in that a substan-
tially verbatim record of a major international conference
is being made available to the public so soon after the close
of the Conference. Included in the record is the report on
the Conference by Secretary of State John Foster Dulles,
delivered over radio and television on February 24, 1954.

Publication 5399

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Our Policy for GermariY

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April 12, 1954

VlBNT Ofr

THE^THREAT OF A RED ASIA • Address by Secretary

Dulles 5*'

OBJECTIVES OF U. S. POLICY IN EUROPE • by

Deputy Assistant Secretary Elbrick 555

FIFTH ANNIVERSARY OF NATO 561

CONSIDERATIONS UNDERLYING U. S.-CHINA

POLICY • by EdKin W. Martin 543

ECONOMIC i COOPERATION BETWEEN THE U. S.
GOVERNMENT AND THE COUNTRIES OF THE

NEAR EAST • Article by Stephen P. Dorsey ... 550

For index see inside bade cover

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Voston Public Library
Superintendent of Documents

APR 28 1954

^yne z/)e/ta/yl^e^^ od C/^te

bulletin

Vol. XXX, No. 772 • Pubucation 5427
April 12, 1954

For sale by the Superintendent of Documents

U. S. Government Printing Office

Washington 26, D. C.

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The printing of this publication has
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Note: Contents of this publication are not
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The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
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Service. The BULLETIN includes
selected press releases on foreign pol-
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Publications of the Department, as
tcell as legislative material in the field
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currently.

The Threat of a Red Asia

Address hy Secretary Dulles '

This provides a timely occasion for outlining
the administration's thinking about two related
matters — Indochina and the Chinese Communist
regime.

Indochina is important for many reasons. First,
and always first, are the human values. About
30 million people are seeking for themselves the
dignity of self-government. Until a few years
ago, they formed merely a French dependency.
Now, their three political units — Viet-Nam, Laos,
and Cambodia — are exercising a considerable
measure of independent political authority within
the French Union. Each of the three is now rec-
ognized by the United States and by more than
30 other nations. They signed the Japanese peace
treaty with us. Their independence is not yet
complete. But the French Government last July
declared its intention to complete that independ-
ence, and negotiations to consununate that pledge
are actively under way.

The United States is watching this development
with close attention and great sympathy. We do
not forget that we were a colony that won its
freedom. We have sponsored in the Philippines
a conspicuously successful development of politi-
cal independence. We feel a sense of kinship with
those everywhere who yearn for freedom.

The Communists are attempting to prevent the
orderly development of independence and to con-
fuse the issue before the world. The Communists
have, in these matters, a regular line which Stalin
laid down in 1924.

The scheme is to whip up the spirit of national-
ism so that it becomes violent. That is done by
professional agitators. Then the violence is en-
larged by Communist military and technical lead-
ership and the provision of military supplies. In
these ^^"ays, international communism gets a
stranglehold on the people and it uses that power
to "amalgamate" the peoples into the Soviet
orbit.

"Amalgamation" is Lenin's and Stalin's word to
describe their process.

^ llnde before the Overseas Press Club of Aniericii at
New York, N. Y., on Mar. 29 (press release 1G5).

Communist Imperialism in Indochina

"Amalgamation" is now being attempted in
Indochina under the ostensible leadership of Ho
Chi Minh. He was indoctrinated in Moscow. He
became an associate of the Russian, Borodin, when
the latter was organizing the Chinese Communist
Party which was to bring China into the Soviet
orbit. Then Ho transferred his activities to Indo-
china.

Those fighting under the banner of Ho Chi
Minh have largely been trained and equipped in
Communist China. They are supplied witli artil-
lery and ammunition through the Soviet-Chinese
Communist bloc. Captured materiel shows that
much of it was fabricated by the Skoda Munition
Works in Czechoslovakia and transported across
Russia and Siberia and then sent through China
into Viet-Nam. Military supplies for the Com-
munist armies have been pouring into Viet-Nam
at a steadily increasing rate.

Military and technical guidance is supplied by
an estimated 2,000 Communist Chinese. They
function with the forces of Ho Chi Minh in key
positions — in staff sections of the High Command,
at the division level, and in specialized units such
as signal, engineer, artillery, and transportation.

In the present stage, the Communists in Indo-
china use nationalistic anti-French slogans to win
local support. But if they achieved military or
political success, it is certain that they would sub-
ject the people to a cruel Communist dictatorship
taking its orders from Peiping and Moscow.

The Scope of the Danger

The tragedy would not stop there. If the Com-
munist forces won uncontested control over Indo-
china or any substantial part thereof, they would
surely resume the same pattern of aggression
against other free peoples in the area.

The propagandists of Red China and Russia
make it apparent that the purpose is to dominate
all of Southeast Asia.

Southeast Asia is the so-called "rice bowl"
which helps to feed the densely populated region
that extends from India to Japan. It is rich in

April ?2, 1954

539

many raw materials, such as tin, oil, rubber, and
iron ore. It offers industrial Japan potentially
important markets and sources of raw materials.

The area has great strategic value. Southeast
Asia is astride the most direct and best-developed
sea and air routes between the Pacific and South
Asia. It has major naval and air bases. Com-
munist control of Southeast Asia would carry a
grave threat to the Philippines, Australia, and
New Zealand, with whom we have treaties of
mutual assistance. The entire Western Pacific
area, including the so-called "offshore i.sland
chain," would be strategically endangered.

President Eisenhower appraised the situation
last Wednesday [March 24] when he said that
the area is of "transcendent importance."

The United States Position

The United States has shown in many ways its
sympathy for the gallant struggle being waged
in Indochina by French forces and those of the
Associated States. Congress has enabled us to
provide material aid to the established govern-
ments and their peoples. Also, our diplomacy has
sought to deter Communist China from open ag-
gression in that area.

President Eisenhower, in his address of April
16, 1953,^ explained that a Korean armistice would
be a fraud if it merely released aggressive armies
for attack elsewhere. I said last September ^ that
if Red China sent its own army into Indochina,
that would result in grave consequences which
might not be confined to Indochina.

Recent statements have been designed to impress
upon potential aggressors that aggression might
lead to action at places and by means of free-
world choosing, so that aggression would cost more
than it could gain.

The Chinese Communists have, in fact, avoided
the direct use of their own Red armies in open
aggression against Indochina. They have, how-
ever, largely stepped up their support of the ag-
gression in that area. Indeed, they promote that
aggi'ession by all means short of open invasion.

Under all the circumstances it seems desirable
to clarify further the United States position.

Under the conditions of today, the imposition
on Southeast Asia of the jDolitical system of Com-
munist Russia and its Chinese Communist ally, by
whatever means, would be a grave threat to the
whole free connnunity. The United States feels
that that possibility should not be passively ac-
cepted but should be met by united action. This
might involve serious risks. But these risks are
far less than those that will face us a few j^ears
from now if we dare not be resolute today.

The free nations want peace. However, peace
is not had merely by wanting it. Peace has to be

' Bulletin of Apr. 27, 1953, p. 599.
'Ibid., Sept. 14, 1953, p. 339.

worked for and planned for. Sometimes it is
necessary to take risks to win peace just as it is
necessary in war to take risks to win victory. The
chances for peace are usually bettered by letting
a potential aggressor know in advance where his
aggression could lead him.

I hope that these statements which I make here
tonight will serve the cause of peace.

Communist China

Let me now discuss our political relations with
Red China, taking first the matter of recognition.

The United States does not recognize the Chi-
nese Communist regime. That is well known.
But the reasons seem not so well known. Some
think that there are no reasons and that we are
actuated purely by emotion. Your Government
believes that its position is soberly rational.

Let me first recall that diplomatic recognition
is a voluntary act. One country has no right to
demand recognition by another. Generally, it is
useful that there should be diplomatic intercourse
between those who exercise de facto governmental
authority, and it is well established that recog-
nition does not imply moral approval.

President Monroe, in his famous message to
Congress, denounced tlie expansionist and despotic
system of Czarist Russia and its allies. But he
said that it would nevertheless be our policy "to
consider the government de facto as the legiti-
mate government for us." That has indeed been
the general United States policy, and I believe
that it is a sound general policy. However, where
it does not serve our interests, we are free to vary
from it.

In relation to Communist China, we are forced
to take account of the fact that the Chinese Com-
munist regime has l>een consistently and viciously
hostile to the United States.

A typical Chinese Communist pamphlet reads:
"We Must Hate America, because She is the
Chinese People's Implacable Enemy." "We Must
Despise America because it is a Corrupt Imperi-
alist Nation, the World Center of Reaction and
Decadency." "We Must Look down upon Amer-
ica because She is a Paper Tiger and Entirely
Vulnerable to Defeat."

By print, by radio, by drama, by pictures, with
all the propaganda skills which communism has
devised, such themes are propagated by the Red
rulers. They vent their hatred by barbarous acts,
such as seizures and imprisonments of Americans.

Those responsible for United States policy must
ask and answer: "Will it help our country if, by
recognition, we give increased prestige and in-
fluence to a regime that actively attacks our vital
interests?" I can find only the answer: "No."

Let us turn now to the matter of seating Red
China in the United Nations. By the charter,
membership is supposed to be limited to "peace-
loving" states. Therefore, it is relevant to recall

540

Department of State Bulletin

that the Chinese Communist regime became an
aggressor in the latter part of 1950. Its armies
invaded Korea and waged war against the United
Nations Command. They contributed largely to
the killing, wounding, or losing in action of about
500,000 soldiers of the United Nations Command,
including over 100,000 Americans.

The United Nations General Assembly on
February 1, 1951, voted, 44 to 7, that the Chinese
People's Republic was guilty of aggression in
Korea. It called upon it to withdraw its forces
from Korea. But they still remain.

It is true that the Chinese Communist Command
concluded a Korean Armistice. But that was not
a Chinese Communist good will offering. It was
something that the United Nations Command won.
The Communists signed only after desperate and
bloody final efforts had failed to break the Allied
line, and only after the United Nations Command
had made it apparent that the conflict, if con-
tinued, would bring into jeopardy valuable Com-
munist military and industrial assets in nearby
Manchuria.

The Chinese Communists' continuing lack of
genuine will for peace is being demonstrated in
Indochina.

As one of the United Nations members who must
pass on representation, we must ask, "Will it serve
the interests of world order to bring into the
United Nations a regime which is a convicted ag-
gressor, which has not purged itself from that
aggression, and which continues to promote the
use of force in violation of the principles of the
United Nations?" I can find only the answer
"No."

Free China on Formosa

There is still another aspect of this China mat-
ter. We must not forget that the National Govern-
ment of China continues to function in Formosa
and millions of free Chinese are gathered there
under its jurisdiction. It has the allegiance of
many more. They have been our loyal friends
and allies when, during World War II, we needed
each other.

Should the free nations facilitate and encourage
the bloody liquidation by the Chinese Conunu-
nists of these free Chinese on Formosa? To me,
again, the only answer is "No."

Experience With Communist Promises

Some say that the United States should recog-
nize the Chinese Communist regime and welcome
it to the United Nations, in reliance of promises in
relation to Korea and Indochina.

The United States must judge that proposal on
the basis of past experience.

The United States agreed to recognize the Soviet
regime in 1933 relying on its promise, in the so-
called "Litvinov agreement," to avoid and prevent

political action from Russia against our political
or social order. We performed and granted
recognition. But the promises we received were
vain.

At Yalta, in February 1945, Britain and the
United States gave sanction to the fact of domi-
nant Soviet influence in Central Europe. They
did so on the basis of a Soviet agreement that the
peoples of liberated Europe would have the right
"to choose the form of government under which
they will live," and that in Poland there would be
"free and unfettered elections as soon as possible."
But those promises we received were vain.

There was also a Yalta agreement with refer-
ence to the Far East. The United States agreed
to obtain for the Soviet Union control of Port
Arthur, Dairen, and the Manchurian Railroad.
In exchange, the Soviet Union promised to sup-
port the National Government of China. This
arrangement was consummated at Moscow in
August 1945. Then the Soviet Government ac-
quired from China the Manchurian assets that had
been promised it. In return it gave a 30-year en-
gagement "to render to China moral support and
aid in military supplies and other material re-
sources, such support and aid to be entirely given
to the National Government as the central govern-
ment of China."

Having gained what it wanted, the Soviet Gov-
ernment then moved promptly to assist the Chinese
Communist regime in its efforts to overthrow the
National Government. It gave to the Chinese
Communist forces vast stocks of military supplies
and other material resources which it had
promised to give entirely to the National
Government.

In this matter again we gave performance. But
the corresj^onding Connnunist promises proved
vain.

Our experience with Chinese Communist
promises is limited because we have with them only
one agreement. That is the Korean Armistice.
The United Nations Command has reported that
the Communists have violated it 40 times. That
only tells part of the story, for the basic violation
is that the Swedish and Swiss members of the
Supervisory Commission are denied an adcq\iate
opportunity to supervise the North and to detect
Communist violations.

The United States recognizes that few nations
have a record which is not marred by some viola-
tions of agi'eements. Also, we recognize that
nothing human is iminutablo. Sui-ely, there is
nothing vindictive or implacable about the Ameri-
can people. Indeed, few people are as ready as
%ve to forgive and forget. But it would be reckless
for us to ignore the events of recent years which
have filled our archives with vain promises. We
are not in the market for more.

It is now the policy of the United States not to
exchange United States performance for Com-
munist promises.

April J 2, 7954

541

That United States position was made clear at
the recent Berlin conference. There, by standing
firm, I finally obtained the reluctant agreement
by Mr. Molotov that the Geneva conference ^Yould
not be a "Big Five Conference" and that the invi-
tation to Geneva would itself s^Decify that neither
the invitation to, nor the holding of, that confer-
ence should be deemed to imply diplomatic recog-
nition where it had not already been accorded.

The Chinese Communist regime has been invited
only to discuss Korea and Indochina, where it is in
fact a force of aggression which we cannot ignore.
It gets no diplomatic recognition from us by the
fact of its presence at Geneva. I said at Berlin :
"It is . . . one thing to recognize evil as a fact.
It is another thing to take evil to one's breast and
call it good." That we shall not do.

The Dangers Ahead

The United States delegation will go to Geneva
in an effort to bring about a united and independ-
ent Korea, from which Communist China will
have withdrawn its army of invasion. Also, we
hope that any Indochina discussion will serve to
bring the Chinese Communists to see the danger
of their apparent design for the conquest of South-
east Asia, so that they will cease and desist. We
shall not, however, be disposed to give Communist
China what it wants from us, merely to buy its
promises of future good behavior.

Some, perhaps, would have it otherwise. But
we dare not forget that during the period when
we accepted Communist promises at tlieir face
value, and took for granted their peaceful inten-
tions, tlie danger steadily grew.

We can, I think, take a lesson from Dien-Bien-
Piiu. For some days there has seemed to be a
lull. But in fact the danger has steadily mounted.
The enemy sappers have never ceased their work.
They have bun-owed and tunneled to gain forward
positions so that the iiuier citadels can be sub-
jected to mass assault from close positions.

Today the free world also feels a sense of lull.
The danger of general war seems to have receded.
I hope that that is so. If it is so, it is because the
free nations saw the danger and moved unitedly,
with courage and decision, to meet it.

There is, however, no reason for assuming that
the danger has permanently passed. There is
nothing to prove that the Soviet Communist rulers
accept peace as permanent, if permanent peace
would block their ambitions. They continue un-
ceasingly to burrow and tunnel to advance their
positions against the citadels of freedom.

In Europe, Soviet Russia holds its grip on
Eastern Germany and Austria and maneuvers
recklessly to prevent reconciliation between
France and Germany. In Asia, the whole area
from Japan and Korea to Southeast Asia is
troubled by Communist efforts at penetration.

As against such efforts, there is only one de-
fense— eternal vigilance, sound policies, and high
courage.

The United States is a member of a goodly com-
pany who in the past have stood together in the
face of great peril and have overcome it. If we
are true to that past, we can face the future with
hope and confidence.

Tribute to Commander and Men
of Dien-Bien-Phu Garrison

President Eisenhower on March 28 sent the fol-
lowing message to Rene Coty, President of France:

My dear Mr. President : In common with mil-
lions of my countrymen, I salute the gallantly and
stamina of the commander ^ and soldiers who are
defending Dien-Bicn-Phu. We have the most
profound admiration for the brave and resource-
ful fight being waged there by troops from France,
Vietnam, and other parts of the French Union.
Those soldiers, true to their own great traditions,
are defending the cause of human freedom and
are demonstrating in the truest fashion qualities
on which the survival of the free world depends.
I would be grateful if you would convey to the
commander of the gallant garrison of Dien-Bien-
Phu this expression of my admiration and best
wishes.

DwiGHT D. Eisenhower.

' Col. Christian de Castriea

542

Department of State Bulletin

Considerations Underlying U.S.-China Policy

by Edwin W. Martin

Deputy Director, Office of Chinese Affairs ^

It is a real privilege for me to be able to meet
with you of the China Comjiiittee today and to
take a small part in your amiual meeting. It has
been a pleasure to renew acquaintances with many
of you and to meet others for the first time. This
association is particularly stimulating to me, for
it is seldom tliat those of us in the Department of
State wlio are primarily concerned with Chinese
affairs liave an opportunity to foregather with such
a large group of people who also have a major
interest in China. I can assure you I have learned
much here today.

I hope that I also have something to contribute,
although I must confess that I face you with some
trepidation, knowing tliat many, if not most of
you, have lived in Cliina several times as long as
I and have been closely following events in China
for many more years. On the other hand, be-
cause you are a specialized audience, I do not have
to explain how complex and difficult a subject
China is, nor apologize because I cannot present
to you a simple formula for solving what is some-
times called "the Cliina problem."

The only distinction which I might perhaps
claim in this gathering of older and wiser China
hands is the dubious one of having had the most
recent direct contact with officials of the pi-esent
mainland regime. As a member of Ambassador
Dean's Mission, I sat across a narrow table from
Chinese and North Korean Communist officials
day after day for a period of 7 weeks and, later
on, after Mr. Dean returned to this country, dur-
ing another series of lower-level meetings.

I would not recommend such an experience for
pleasure, and I am not sure how much insiglit
into what makes the Communists tick we gained
from these formal, cold, and often acrimonious,
discussions. However, I did come away with a
strong impression that the men who run Commu-
nist China dwell in anotlier world from us, live
by an entirely different set of standards, and ap-
pear to liave no genuine interest in working out

' Addres.s made before the China Committee of the Na-
tional Council of the Churches of Christ in the U.S.A.,
New York, N. Y., on Mar. 24.

mutually acceptable solutions to the specific prob-
lems, such as those of a divided Korea, which
are causing tlie current tensions in the Far East.

The Geneva Conference

Tlie forthcoming conference at Geneva, how-
ever, will give us an opportunity once again to test
Chinese Communist intentions. Our agreement to
this conference has led to considerable discussion
in the press and in other public forums as to its
significance in terms of our China policy. The
question is asked : Does our agreement to sit down
at Geneva with representatives of the Peiping
regime mean that our policy on China has changed
or is about to change?

The answer is definitely no. Tlie Soviet
attempt at Berlin to bring about a so-called five-
power conference was categorically rejected by the
three Western Foreign Ministers. Instead, an
agreement was finally accepted by the Soviets to
hold a conference on Korea along the lines pro-
posed in the U.N. General Assembly resolution of
August 28, 1953,^ which was based on the Armi-
stice Agreement and supported by the United
States. The Peiping regime will participate in
this conference solely as one of the belligerents
in Korea. Its status will be no different from that
of its fellow aggressor, the North Korean regime.
It must be dealt with because of its involvement
in Korean affairs.

The same situation applies to that phase of the
conference dealing with Indochina. In addition
to the four nations represented at Berlin, other
interested parties will participate, including Com-
munist China, whose interest stems from its moral
and material support of Ho Chi Minh's rebel
forces. Tlie basis of the conference will be the
same as that in the Korean phase. We will be
dealing with it on a strictly limited subject where
the Peiping regime is necessarily a party at in-
terest through its aggressive intervention.

In order to make it explicit that in participat-
ing in tlie conference at Geneva witli representa-

• Rui.LETiN of Sept. 14, 1953, p. 366.

Apri] 12, 1954

543

tives of Peiping the United States will not be
deviating in any respect from its policy of non-
recognition of Red China, the following statement
was incorporated in the Berlin resolution at our
insistence :

It is understood that neither the invitation to, nor the
hoUlingr of, the above-mentioned conference shall be
deemed to imply diplomatic recognition in any case where
it has not already been accorded.

Wliat could be clearer than this?

I have digressed briefly on the subject of the
forthcoming conference at Geneva in order to
point out that our agreement to participate in this
conference does not represent a departure from
our policy with respect to China. This policy is
based upon our appraisal of the situation which
confronts us in China. Nothing happened at
Berlin to alter this appraisal.

On the other hand, the conference will be a test
of Communist professions and intentions, and it
is the more important, therefore, that we have a
thorough understanding of what the United States
and its free-world partners stand for and the prob-
lems and issues the Communists pose. We must
have such an understanding if we are to deal
realistically with these issues with the Chinese
Communists at Geneva, and to determine how, if
at all, tlie high goals we seek to achieve with re-
spect to Korea and Indochina can be reached there
through negotiation.

The Chinese Communist Regime

Wliat is the situation that confronts us today
on the China mainland ? I will describe it briefly
only in terms of power.

In the 41/2 years since the establishment of their
regime, the Chinese Communists have witli ruth-
less eiSciency set out not only to liquidate all overt
political opposition but also to eliminate sources
of potential opposition. On the basis of available
evidence, the Peiping regime has largely succeeded
in accomplishing the hrst objective througliout
most of China. Landlords, so-called "counter-
revolutionaries," and farmers-turned-guerrillas
have been slain by the millions in the process.

The regime will never succeed in the second of
these objectives, of course, for virtually the whole
population of the mainland will remain a source of
potential opposition. Nevertheless, by such de-
vices as the so-called "5-anti campaign," the Com-
munists have struck heavily at social-economic
groups— such as the urban middle class, for ex-
ample— which they distrust and which are logical
sources of potential opposition leadership. The
result of these and other policies has been to con-
solidate the hold of the Communist regime over
the mainland to a point where, for the predictable
future at least, there is no prospect of its being
seriously shaken by domestic opposition, however
much the people may cry out in their hearts against
the evil which has befallen them.

For purposes of policy determination, therefore,
it must be estimated that, short of large-scale inter-
vention, the Communist regime at Peiping will
continue to exercise effective control over the main-
land and to utilize the human and material re-
sources of that vast area to increase its own power.

If this assumption is correct, it then becomes a
matter of urgent concern to us to estimate how
Peiping may be expected to use this power derived
from its control of the Chinese mainland. The
record shows that it will be used to serve the inter-
ests of the Soviet bloc, which the regime identi-
fies with its own.

At the very outset, the Mao regime declared that
it was by choice in the Soviet camp, announcing
that it would pursue a "lean to one side" policy in
foreign affairs — one of the gi'eatest understate-
ments of the ages. The alacrity with which the
Soviet Union and its satellites recognized the new
regime indicated that this policy came as no sur-
prise to them and attested to tlieir conviction that
the new regime was genuinely Communist. Thus
the Peiping regime, which was established on
October 1, 1949, was notified on October 2 by the
U.S.S.R. of its decision to establish diplomatic
relations.

This was accomplished the very next day, and
the Soviet's Eastern European satellites, Bul-
garia, Rumania, Hungary, Czechoslovakia, and
Poland, dutifully followed suit on October 4, 5,
6, and 7, respectively. The North Korean regime,
the East German Communist satellite, and the
so-called "Peoples Republic of Mongolia," which
is legitimately Chinese territory, also established
diplomatic relations with the Peiping regime
during the first month of its existence.

Since then, the Chinese Communist regime has
progressively strengthened its ties with the So-
viet Union and other Communist states through
various treaties and agreements. For example,
on February 16, 1950, it concluded with Moscow
a so-called "Sino-Soviet Treaty of Friendship,
Alliance, and Mutual Assistance*'; an agreement
on the Chang Chun Railroad, Port Arthur, and
Dairen ; and an agreement on the grant of credit.
This event was followed by conclusion of a barter
agreement with Poland on March 1, a barter
agreement with the Soviet Union on April 19, a
trade agreement with East Germany on October
10. In subsequent years it has concluded agree-
ments with the other satellite states.

Spread of Soviet Influence

But Peiping has not been content simply with
strengthening its external ties with the Soviet
Union and its satellites. It has actively intro-
duced Soviet influence into China itself. Thus
thousands of Soviet advisers in diverse fields have
been brought in by the Mao regime following its
conclusion with Moscow, on March 27, 1950, of
"an agreement for the enlistment of the services

544

Deparfmenf of State Bulletin

of Soviet experts by China." These Soviet ad-
visers play an important role in shaping Bed
China's economic life and building its military
establishment along Soviet lines.

In order to facilitate the spread of Soviet in-
fluence, the teaching of the Russian language has
been vigorously pushed and will become compul-
sory in all middle schools as soon as the supply
of teachers permits. Soviet political and cul-
tural writings have also been translated in large
numbers and distributed widely. According to
the Chinese Communist publication A Guide to
New China (1953 edition), the Sino-Soviet
Friendship Association, which was established
less than a week after the Peiping regime itself
and now claims a membership of over 68 million,
had by the end of September 1952 published 91
periodicals and 1,990 booklets, with a total cir-
culation of over 14,600,000 copies, had given
35,518 moving picture shows to a total audience
of 37,700,000, and had arranged 29,769 photo-
graphic exhibitions visited by 81,400,000 people.

The Guide describes the Sino-Soviet Friendship
Association as "a vast organization whose aim is
to further and to consolidate a fraternal friend-
ship and cooperation between the Chinese and
Soviet peoples and to develop interflow of knowl-
edge and experience of the two great nations."
From all appearances, however, the alleged inter-
flow of knowledge and experience is principally
a one-way thoroughfare for the spread of Soviet
influence in every walk of life on the mainland
of China.

In effect, China is being deliberately and sys-
tematically swamped by alien Soviet ideas, values,
institutions, and practices. While the Peiping
regime has thus integrated itself more and more
closely with the Soviet bloc externally and de-
liberately intensified Soviet influence within
China, it has at the same time assumed a posture
of open hostility toward the West, especially the
United States, and energetically sought to root
out every vestige of Western cultural, economic,
and political influence from the mainland. I do
not have to elaborate this point before this audi-
ence, or remind you that in the process many of
your colleagues, both Chinese and foreign, have
suffered serious pei"sonal injury and abuse. There
are still 32 Americans incarcerated in Chinese
Communist prisons.

The motivation of the Chinese Communist lead-
ers in closing down American missions, colleges,
schools, and cultural institutes is not difficult to
understand, of course. The message which these
institutions brought, the teachings which they
spread, were incompatible with the materialistic,
state-supremacy ideology of the new mastei-s at
Peiping. Nor can one be surprised that the busi-
ness enterprises of the Western democracies
should be so heavily taxed and so circumscribed
by restrictions as to make them inoperable, for
the economic theories of the Peiping regime en-

visage the total control of the economic life of the
country by the state.

Aggression in Korea

The full significance in terms of balance-of-
power relationships in the Far East of Mao Tse-
tung's transformation of the Chinese mainland
into a gigantic Communist base was painfully
brought home to the world in November 1950,
when Chinese Communist troops by the hundreds
of thousands poured into Korea and engaged
United Nations and Republic of Korea forces in
combat. Like their North Korean allies, the
Chinese Communist armies were continuously
supplied with Soviet equipment. This event
demonstrated beyond question not only the
solidity of the Peiping regime's alinement with
the Communist bloc but also its willingness and
ability to resort to open aggression in pursuit of
bloc objectives. If there had been any doubt
previously about the nature of the Mao regime, it
was eliniinnted by Communist China's interven-
tion in Korea.

For this act it was justly condemned as an ag-
gressor by the United Nations General Assembly.

But is there reason to believe that the cessation
of hostilities in Korea has changed this picture?

Thus far, unfortunately, there has been no indi-
cation that the Peiping regime, since the conclu-
sion of the Korean Armistice Agreement on July
27, 1953, has changed its international outlook in
any significant respect. The regime has continued
its violent hate campaign against the United States
and various Asian and Western Governments as-
sociated with it; it has continued to support the
Communist-led Viet Minh rebels against the le-
gitimate Governments of Viet-Nam, Cambodia,
and Laos; it has continued to give covert encour-
agement and support to Communist guerrillas and
other subversive groups in Southeast Asian coun-
tries; and it has persisted in its gross mistreat-
ment of foreign nationals whom it has detained.

In short, the Peiping regime has failed to make
a single move since the Armistice Agreement was
signed in Korea to indicate that the policies which
led to its aggression in Korea have been aban-
doned. Signature of the Armistice Agreement by
the Chinese Communists did not in itself repre-
sent a shift in policy but only in tactics, a shift
caused by the failure of previous tactics in the
face of tiie heroic defense of its homeland by the
Republic of Korea's army with the decisive as-
sistance of United Nations forces. Thus the Com-
munists ceased hostilities in Korea for practical
not for moral reasons or because their objectives
had changed.

The tehavior of the Chinese Communists with
respect to the Armistice Agreement itself, in fact,
affords another insight into the nature of their
policies. I will cite three examples briefly :

AprW ?2, J 954

545

First, the Armistice Agreement provisions which
enable the Neutral Nations Supervisory Commis-
sion to supervise the implementation of the
armistice behind the lines have been effectively
bypassed by the Communists, so that the Neutral
Nations Supervisory Commission has been unable
to ifulfill its proper function in North Korea.

Secondly, at Panmunjom, during the negotia-
tions in which I took part, the Communists made
proposals which blandly ignored the clear intent
of paragi-aph 60 regarding the holding of the po-
litical conference, both with respect to the
composition of the conference and to its agenda.
They had either changed their minds since sign-
ing the agreement or had no intention of adhering
to the terms of paragraph 60 when they signed it.

A third and even more flagrant case of abuse
of the Armistice Agreement was their action re-
lated to the nonrepatriate prisoners of war.
Wlien, in the first few days of explanations to the
prisoners of war, it became apparent that only a
small fraction would agree to return to the Com-
munist side, the Communists preferred to block
the whole procedure of explanations and distort
the terms of reference rather than be faced with
daily humiliation.

In all three cases, Peiping's written word
meant nothing as soon as it oecame advantageous
to violate it. Peiping could hardly have chosen
a better way to demonstrate tliat it has not
changed its policies since the armistice.

To sum up the mainland situation, we must
estimate that not only will the Peiping regime
maintain effective control of the mainland but it
will remain firmly alined with Moscow and will
continue to pursue objectives inimical to the
United States and all free nations by any means
at its disposal, including armed aggression when
feasible.

Importance of Formosa

Turning now to Formosa, we find that it oc-
cupies an importance in our appraisal of the China
scene greatly out of proportion to its size and re-
sources, because it is the seat of the legitimate
Government of China. Since it was driven from
the mainland by Communist power, the Govern-
ment of the Republic of China has not only suc-
ceeded in surviving but has grown in strength and
stability.

Strategically, the Island of Formosa, defended
by a steadily improving military establishment
some i/v million strong, is a major obstacle to fur-
ther Communist military expansion in the Pacific.
Because the military forces on Formosa are com-
posed of Chinese imbued with a desire to liberate
their fellow countrymen on the mainland, they
possess, in addition to their intrinsic military
value, a psychological importance for China
greater than a comparable force of another na-
tionality. Thus, while it would be unwise to over-

estimate the strength of the free Chinese forces
on Formosa in the face of the formidable military
power of the mainland, they are nevertheless an
indispensable asset to free-world defenses in the
Pacific.

Perhaps of more importance, however, than the
military capabilities of Free China are its politi-
cal potentialities. The very existence of the Gov-
ernment of the Republic of China on Formosa
symbolizes the significant fact that communism
has not won a total victory in China. During the
41/2 years that it has governed from Taipei, im-
portant strides have been made in the economic
and governmental administration spheres, dem-
onstrating that the Chinese Government has a ca-
pacity for growth and improvement, and provid-
ing confidence that it will continue to develop on
Formosa a free Chinese society which will stand
in increasingly favorable contrast to the regi-
mented and oppressed society of the mainland.
By fulfilling this role, it will attract growing sup-
port and allegiance from the Chinese people every-
where.

The Chinese Government on Formosa also pro-
vides the Chinese people with a representative
voice in the United Nations and in other inter-
national forums, and with a channel of continuing
contact with the peoples of the free world. It has
consistently supported the objectives of the United
Nations and other international bodies to which it
belongs, and thereby has assumed a posture in
world affairs more truly representative of the
desires of the Chinese people than the defiant and
aggressive regime in Peiping. In sum, we must
estimate that for the sake of the Chinese people,
as well as in our own interest, we must continue
to recognize the Government of the Republic of
China as the rightful Government of China and to
give it our financial, diplomatic, and military
support.

The 13 million overseas Chinese are an impor-
tant element of the China picture in their own
right. It should not be forgotten that overseas
Chinese support of Sun Yat-sen contributed sig-
nificantly to the ultimate overthrow of the Manchu
dynasty. Once again the overseas Chinese com-
munities may make an important contribution to
the cause of freedom.

The role of the overseas Chinese is given added
significance by the active, and sometimes effective,
efforts (particularly in the case of the youth) of
the Chinese Communists to penetrate their com-
munities and to make tools of them. In countries
which have recognized the Peiping regime this
effort is facilitated by the inducements and pres-
sures which Peiping can exert on the overseas
Chinese through its diplomatic and consular
officials.

On balance, however, Peiping has lost ground in
the overseas Chinese communities, at least in terms
of the numbers of its supporters. This may be
attributed in part to the excesses of the regime

546

Department of State Bulletin

during the past 2 or 3 years, particularly in its
attacks against the merchant class. It may also
be due to the fact that several of the Southeast
Asian states, where most of the overseas Chinese
are concentrated and form potent minorities, have
takeji measures to discourage local Chinese politi-
cal activity and have increased their efforts to
integi'ate these alien communities with the in-
digenous population. To the extent that such
measures are successful they will also tend to
diminish the support which the Republic of China
can expect to receive from the overseas Chinese.
Nevertheless, these communities remain an im-
portant potential source of moral and financial aid
to the cause of Chinese freedom, and of strength
in the countries in which they reside.

Our Use of Freedom

In these few minutes I have tried to describe
for you the main elements in the China scene as
we face it today. It is in the light of these ele-
ments that our policy toward China is formulated.
On the wisdom, firmness, and consistency of
this policy will depend in large measure the ability
of the free nations in Asia to maintain their free-
dom, and the ultimate hope of the Chinese people
to regain theirs.

In view of the situation on the Chinese main-
land today, we have no choice but to maintain
strong military forces at home and in the Pacific,
and to assist other nations in the Far East, in-
cluding Free China, to build up their defenses,
if freedom is to be preserved.

The ultimate success of our policy toward
China, or toward any area of the world for that
matter, does not rest merely on the preservation
of freedom, however, but also on our constructive
utilization of freedom. Secretary Dulles has said :

The fundamental, on our side, is the richness — spiritual,
intellectual and material — that freedom can produce and
the irresistible attraction it then sets up.

I think it is significant that Mr. Dulles put
spiritual richness first. The most constructive
use to which we can put our freedom is the de-
velopment of spiritual richness. Freedom thus
used will exert its irresistible attraction in the
great struggle for the hearts and minds of men
in which we are engaged.

But if this is true, it behooves us Americans to
give profound attention to our own spiritual
foundations. As a Nation we must follow the
example of the man described in the eighth chapter
of Matthew, who built his house upon a rock. We
know that the Communists are building their
house on the sands of atheism, materialism, and
the degradation of the human spirit, and gi-eat
will be the fall thereof. But we must beware
lest our house fall too. We must build it upon
rock — the rock of faith. This is the consideration
which transcends in importance all other elements
in the formulation of our China policy.

U.S.-Japanese Friendship

hy Walter S. Robertson

Assistant Secretary for Far Eastern Affairs ^

The friendship between Japan and the United
States is 100 years old today. The magnificent
stone lantern — itself three times that age — which
stands here beside us was given to our capital city
by the people of the capital city of Japan to com-
memorate the event with which that friendship
began. That event was the conclusion of the treaty
of Kanagawa, which was signed for the United
States by Commodore Matthew C. Perry.

It is conventional to point out that the visit of
Commodoi-e Perry's squadron to the harbor of
Uraga brought to an end the long period of
Japan's seclusion.

Perhaps it may also, however, be said to have
foreshadowed the end of our own detachment
from world affairs. From the event of precisely
100 years ago that we are celebrating today may
well be dated the synchronous rise of Japan and
the United States to the condition of world pow-
ers. This is a condition our two peoples have by
no means entirely desired or always enjoyed. The
isolation to which we both clung in the past out of
suspicion and fear of more powerful nations across
the seas has never entirely lost its attractions for
us. When the trials and difficulties of decision
that go with great nationhood have sorely beset us,
we have looked back with nostalgia upon the
happy days when it seemed possible to exclude
the world from our shores.

For both countries, however, isolation has
always been a vain dream. The character of the
Japanese and American peoples — their capacity
for hard work, their vigor, their ingenuity and
scientific aptitudes — and the stimulus given to the
exercise of these qualities by the character of the
lands the two peoples inhabit made certain that
the two countries would win places of influence
in the world and would bear great responsibility
for the future of 20th century civilization.

Since the bearing of such responsibility is so
notably the common destiny of our two nations
todaj', each people can be grateful that it has
the other for its friend.

The long association of Japan and the United
States has been marked by outstanding acts of
generosity on both sides. Each people has helped
the otlier when natural disaster has .struck. It
has been marked also by one tragic and terrible
conflict. But all our shared experiences, happy
and unhappy together, have, in their ultimate
effect, f ended to draw us together. I bel ieve it can
fairly be said that our two peoples have come
to understand each other. This understanding
bridges the vast waters of the Pacific and a great

' Address made at Washington, D. C, on Mar. 30 (press
release 167).

Apn] ?2, 1954

547

dissimilarity of national origins. I am convinced
that for that reason — because it has overcome dis-
taiice and difference of background — it is all the
stronger. Actually, Japanese and American civ-
ilization have much in common. The things to
which the Japanese devote themselves are those
that we ourselves take very seriously — whether
it is designing steel mills or cultivating flower
gardens. We conceived an admiration for the
Japanese long ago, when, starting with few as-
sets but their own character and intelligence, they
transformed their island home into one of the
most productive parts of the world. This kind
of success story, in which diligence and applica-
tion prevail over adversity and all obstacles, has
always had an irresistible appeal to the American
people — perhaps because it is their story too.

This great lantern which comes to us as a sym-
bol of the traditions of Japan is as nearly im-
perishable in its construction as a product of
human hands can be. It was given to us by the
peoples of Tokyo, like the cherry trees around us
which have become to all our country symbolic
of the physical beauties of our National Capital.
It will always mean to us that the people of Tokyo
reciprocate the friendship we feel for them and
have chosen this poetic and enduring means of
assuring that they stand beside us, no less than we
beside them, in our common efforts to realize the
promise of our century, which contains so much
of darkness, so much of hope.

Hydrogen Bomb Tests
in the Pacific

hy Lewis L. Strmiss

Chairman, Atomic Energy Commission'^

The President has authorized me to make avail-
able those portions of my report of yesterday to
him, the publication of which would not compro-
mise information vital to our national security.

I have just returned from the Pacific proving
grounds of the Atomic Energy Commission, where
I witnessed the second part of a test series of ther-
monuclear weapons. I will describe it as well as
I am able, but perhaps before doing so it would be
appropriate to begin with a short summary of the
historical backgi-ound.

We detected the test of an atomic weapon, or
device, by the Kussians in August of 1949.^
Realizing that our leadership was therefore chal-
lenged and that our sole possession of the weapon
which had been a major deterrent to aggression
had been canceled, it became clear that our superi-
ority would thereafter be only relative and de-
pendent upon a quantitative lead — that is to say,

' Excerpts from a statement made to White House cor-
respondents on Mar. 31.

^ For statements by the President and the Secretary of
State regarding evidence of an atomic explosion in the
Soviet Union, see Bulletin of Oct. 3, 1949, p. 487.

548

upon our possession of greater numbers of atomic
weapons so long as that could be maintained.
There was, however, the altei'native of a qualita-
tive lead if we could make a weapon of greater
force — greater than the fission weapons by a de-
gree of magnitude comparable to the difference be-
tween fission bombs and conventional bombs. A
theoretical method of accomplishing this was
known to our scientists.

In January 1950 the President directed the
Atomic Energy Commission to undertake the
necessary steps to see if this weapon, variously
called Ihe hydrogen bomb, the fusion bomb, and
the thei'monuclear bomb, could in fact be made.
As you know, thanks to the ingenuity of those
scientists and engineers who devoted themselves
to the project, the feasibility of the fusion reaction
was demonstrated and a prototype was tested at
Eniwetok in November 1952.

This test produced the largest manmade explo-
sion ever witnessed to that date, and from that
point we moved into refinement of design and
other development. In August of last year the
Ru.'^'sians also tested a weapon or device of a yield
well beyond the range of regular fission weapons
and which derived a part of its force from the
fusion of light elements.' There is good reason to
believe that they had begun work on this weapon
substantially before we did.

The present series of tests has been long in the

glanning. It is conducted jointly by the Atomic
Inergy Commission and the Department of De-
fense. ' A Task Force composed of the three armed
services and a scientific staff representing the Com-
mission was established last year in accordance
with the procedure successfully followed in pre-
ceding tests outside our continental limits. The
Navy, Air Force, and Army have successively sup-
plied the command for the Task Forces.

Early this January, men and supplies began to
move out to the proving grounds for this series.
The first shot took place on its scheduled date of
March 1, and the second on March 26. Both were
successful. No test is made without a definite
purpose and a careful determination that it is
directed toward an end result of major importance
to our military strength and readiness. The re-
sults which the scientists at Los Alamos and Liver-
more had hoped to obtain from these two tests
were fully realized, and enormous potential has
been added to our military posture by what we
have learned.

It should also be noted that the testing of weap-
ons is important likewise in order to be fully aware
of the possible future, aggressive ability of an
enemy, for we now fully know that we possess no
monopoly of capability in this awesome field.

Now as to this specific test series. The first shot
has been variously described as "devastating,"
"out of control," and with other exaggerated and
mistaken characterizations. I would not wish to

' Ihid., Aug. 24, 1953, p. 23T, and Oct. 19, 1953, p. 508.

Department of State BuUetin

minimize it. It was a very large blast, but at no
time was the testing out of control. The misappre-
hension seems to have arisen due to two facts.
First, that the yield was about double that of the
calculated estimate — a margin of error not incom-
patible with a totally new weapon. (The range of
guesses on the first A bomb covered a relatively
far wider spectrum.) Second, because of the re-
sults of the "fall-out."

AVhen a large explosion occurs on or within a
certain distance of the ground, an amount of earth
or water or whatever is beneath the center of the
explosion is sucked up into the air. The heavy
particles fall out quickly. The lighter ones are
borne away in the direction of the wind until they
too settle out. If the explosion is a nuclear one,
manj' of these particles are radioactive, as are the
vaporized parts of the weapon itself.

For this reason the Atomic Energy Commission
has conducted the tests of its larger weapons away
from the mainland so that the fall-out would occur
in the ocean, where it would be quickly dissipated
both by dilution and by the ra})id decay of most
of the radioactivity which is of short duration.
The Marshall Islands were selected for the site
of the first large-scale tests — Operation Cross-
roads— for reasons which will be apparent from
the maps which I shall show you. The late Adm.
W. H. P. Blandy, under whom I had the privilege
of serving, selected the Bikini site.

The Marshall Islands during the months of
February, March, and April are usually favored
bj' winds which would blow away from any in-
habited atolls. The two atolls of Bikini and
Eniwetok were chosen as the base for these opera-
tions. Each of these atolls is a large necklace of
coral reef surrounding a lagoon two to three hun-
dreds of square miles in area, and at various points
on the reef, like beads on a string, appear a multi-
tude of little islands, some a few score acres in
extent — others no more than sandspits. It is these
small, uninhabited, treeless sand oars which are
used for the experiments. As a matter of fact, the
Task Force dredged up enough sand and coral to
build one of these so-called islands to have it where
it was wanted most advantageously for shot num-
ber one. The impression that an entire atoll or
even large islands have been destroyed in these
tests is erroneous. It would be more accurate to
say a large sandspit or reef.

Before the shot takes place, thei-e is a careful
survey of the winds at all elevations up to many
thousands of feet. This survey is conducted by
M'eather stations on islands and on fleet units at
widely separated points. Contrary to general be-
lief, winds do not blow in only one direction at a
given time and place. At various heights above
the earth, winds are found to be blowing fre-
quently in opposite directions and at greatly vary-
ing speeds. An atomic cloud is therefore sheared
by these winds as it rises through them. The
meteorologists attempt to forecast the wind direc-

tion for the optimum condition, and the Task
Force Commander thereupon decides, on the basis
of the weather reports, when the test shall be made.
The weather forecast is necessarily long-range be-
cause a warning area must be searched for ship-
ping and the search which is carried out both
visually and by radar in P2V Navy planes requires
a day or more to complete.

The "warning area" is an area surrounding the
proving grounds within which it is determined
that a hazard to shipping or aviation exists. We
have established many such areas, as have other
governments. This map shows such areas off the
Pacific Coast at Point Magu, and off the Hawaiian
Islands. Here is a large guided-missile warning
area from Florida across the Bahamas. Here is
one maintained by Great Britain off Australia.
Including our continental warning areas, we have
established a total of 447 such warning and/or
danger areas. This particular warning area was
first established in 1947. The United Nations were
advised, and appropriate notices were carried then
and subsequently in marine and aircraft naviga-
tional manuals.

With respect to the apprehension that fall-out
radioactivity would move toward Japan on the
Japanese Current, I can state that any rodioactiv-
ity falling into the test area would become harm-
less within a few miles after being picked up by
these currents, which move slowly (less than one
mile per hour), and would be completely unde-
tectible within 500 miles or less.

With respect to a stoi-y which received some
currency last week to the effect that there is dan-
ger of a fall-out of radioactive material in the
United States, it should be noted that after every
test we have had and the Russian tests as well
there is a small increase in natural "background"
radiation in some localities within the continental
United States, but, currently, it is less than that
observed after some of the previous continental
and overseas tests, and far below the levels which
could be harmful in any way to human beings,
animals, or crops. It will decrease rapidly after
the tests until the radiation level has returned
approximately to the normal background.

A recent comment whicli I have been shown has
suggested that the incident involving the fall-out
on inhabited areas was actually a planned part of
the operation. I do not wish to comment on this
other than to characterize it as utterly false, irre-
sponsible, and gravely unjust to the men engaged
in this patriotic service.

Finally, I would say that one important result
of these hydiogen bomb developments has been
the enhancement of our military capability to the
point where we should soon be more free to in-
crease our emphasis on the peaceful uses of atomic
power— at home and abroad. It will be a tremen-
dous satisfaction to those who have participated in
this program that it has hastened that day.

April 12, 1954

549

Economic Cooperation Between the U.S. Government
and tlie Countries of the Near East

iy Stephen P. Dorsey

There is a long history of economic cooperation
with the Near East on the part of American pri-
vate enterprise. Yankee traders went to the
Levant in tlie early days of the new republic. The
first American technical expert might be said to
be Eli Smith, a missionary from Northford,
Conn., who took the printing press to Syria in
1834. Ex- Confederate technicians contributed
their skills to the development of the area after
the end of the Civil War. These were all private
ventures — forerunners of the business firms and
the philanthropic, religious, welfare, educational,
and cultural organizations whose interests today
figure prominently in Middle East affairs.

The U.S. Government, on the other hand, al-
though it has lent diplomatic support to such
ventures since before the signing of the U.S.
Treaty of Amity and Commerce with Muscat in
1833, did not become directly involved from a
financial point of view in economic or technical

frojects in the area until the Second World War.
t was then that limited lend-lease aid was ex-
tended to several Near Eastern countries on a
cash-reimbursable basis and it was just after the
war that Export-Import Bank loans and surplus
war property credits were extended to certain
others. In 1947 the Greek-Turkish aid policy
was announced ; in the case of Turkey the aid
was largely military at first, but later it became
part of the Marshall plan with greater emphasis
on economic development. In January 1949 tech-
nical assistance, under Government as well as pri-
vate auspices, was announced as the fourth point
of the President's inaugural address, although it
was another year and a half before the first of
the hundreds of teclmical experts financed by the
U.S. Government reached the Near East.

During this post-war period Congress also
appropriated funds to various U.N. agencies
which are active in the area today, the United
Nations Relief and Works Agency for Palestine
Refugees ($153 million to date) ; the Interna-
tional Bank for Reconstruction and Development
(which has made loans to two Near Eastern coun-

tries, Turkey and Iraq, and which will shortly
send an advisory mission to Syria) ; and a number
of other U.N. agencies — World Health Organiza-
tion, Food and Agriculture Organization, U.N.
Cliildren's Fund, International Civil Aviation Or-
ganization, U.N. Technical Assistance Adminis-
tiation, and International Labor Organization.
Finally, last summer Congress amended the Mu-
tual Security Act to provide for "special economic
assistance" over and above technical assistance in
the exact sense of the term.

Thus in the space of 10 years the U.S. Govern-
ment has undertaken substantial, although not
massive, economic cooperation in the Near East.
As Secretary Dulles remarked when he returned
from the area last June : '

The peoples of the Near East and Asia demand better
standards of living, and the day is past when their aspira-
tions can Ije ignored. The task is one primarily for the
governments and the peoples themselves. In some cases
they can use their available resources, such as oil revenues,
to better advantage. There are, however, ways in which
the United States can usefully help, not with masses of
money but by contributing advanced technical knowledge
about transport, communication, fertilization, and use
of water for irrigation. Mr. Stassen and I feel that
money wisely spent for this area under the mutual se-
curity program will give the American people a good re-
turn in terms of better understanding and cooperation.

Turkey

Any discussion of American economic coopera-
tion with the Near East might well be introduced
by a summary of our relationship with Turkey,
for here economic cooperation has embraced all
of the types to be discussed later, with the signifi-
cant exception of refugee aid. And in Turkey we
see an outstanding example of economic and social
progress in a troubled area — a stalwart member of
the free world community.

Originally limited to fields governed by the
Turco- American Treaties of Commerce and Navi-
gation (1929) and Establishment and Sojourn
(1931), U.S.-Turkish economic cooperation grew

" Bulletin of June 15, 1953, p. 831.

550

Department of State Bulletin

to cover Lend-Lease (now settled) stockpile and
economic warfare purchases; credits from the
Maritime Commission (payments completed) ;
Surplus Property Administration (now settled),
and Export-Import Bank (payments two-thirds
completed) ; as well as both loans and grants under
FoA (originally Msa, Eca, and Greek-Turkish
Aid) for purposes of economic development, in-
cluding technical assistance. Meanwhile, the In-
ternational Bank for Reconstruction and Develop-
ment (in which the U.S. holds a 32 percent
interest) extended loans for complementary de-
velopment projects, completed an overall economic
survey with emphasis on investment possibilities,
and lent funds and advice toward the establish-
ment of an industrial development bank which can
be called the first private institution in the Middle
East to have adopted the principles of investment
looking to the needs of the area.^ The total U.S.
Government investment in Turkey comes to
roughly $300 million in the form of grants for
defense support, including technical assistance,
and $90 million in loans.

The Turkish Republic had launched a program
of social and economic development some 20 years
before the American Government assistance came
on the scene, and this in many ways made the task
of economic cooperation easier and more fruitful
than it has been so far with most of the other
countries in the area. No attempt will be made
here to measure the results of this cooperation, but
it is generally accepted that it has helped Turkey
develop a markedly stronger economic and social
base with consequent advantages to the United
States and the rest of tlie free world. The latest
manifestation of Turkey's new strength is her
strikingly progressive new investment law, passed
in January.'' This in itself, while basically an
accomplishment of the Turks, is a product of
U.S.-Turkish Government cooperation, since the
law is based on recommendations by the group
headed by Clarence Randall who went to Turkey
under Foa auspices for the purpose, not long be-
fore he undertook an assignment for the President
to complete the more universal report which has
recently been issued.

Technical Assistance

With respect to the other countries of the Mid-
dle East, what are the types of direct government
economic cooperation ? Probably the most widely
known today is technical assistance. Bilateral
technical assistance programs are under way in
Iran, Israel, Ethiopia, Liberia, and all the inde-
pendent Arab States except Syria and Yemen.
Congressional appropriations for these programs
were as follows : $5 million, fiscal year 1951 ; $45

' For an announcement of the Ibrd's most recent loan to
Turkey, made Feb. 26, see ibid., Mar. 15, 1954, p. 407.
'lUd., Feb. 22, 1954, p. 285, footnote 2.

million, fiscal year 1952; $51 million, fiscal year
1953 ; and $34 million, fiscal year 1954 ; or a total
of $135 million.

The largest beneficiary of these technical assist-
ance funds has been Iran, which was apportioned
approximately $24 million of the $51 million for
these countries in the fiscal year 1953 and received
roughly 175 technicians of the 600 then working
in the area.

The next largest beneficiary is Egypt, which
was apportioned approximately $13 million in
fiscal 1953. Ten million of this was the U.S. con-
tribution to an Egyptian-American Rural Im-
provement Fund to which tlie Egyptian Govern-
ment contributed the equivalent of more than $16
million. The work is centered in two provinces,
Beheira and Fayoum, and involves reclamation
work as well as agricultural, health, educational,
and other associated projects. Other allotments
in the area, including Israel, were small, none
more than $3 million in 1953. Some of the funds
were spent for regional purposes, notably locust
control and the American University of Beirut.

General agreements, long since negotiated with
all the countries receiving technical assistance, set
forth conditions laid down in the Mutual Security
Act. They include provisions for the supplying
and publication of essential information pertain-
ing to the programs, though Moscow radio has
at times represented them as secret agreements
under which capitalist America seeks to starve
the countries concerned into submission to impe-
rialism. The agreements also include language
from section 511 (b) of the law which requires
aid recipients to agree in writing "to join in pro-
moting international understanding and good will,
and in maintaining world peace, and to take such
action as may be mutually agreed upon to elimi-
nate causes of international tension."

In addition to the broad general agreements,
program and project agreements are necessary
to establish U.S. and local government contribu-
tions to, and the administration of, particular
projects. There are close to one hundred such
agreements in effect with Near Eastern countries,
and, together with the general agreements, they
provide the legal basis for our technical
cooperation.

With respect to the projects themselves, it is
difficult to single out typical ones since they vary
widely in type and degree of success. However,
Americans can take some pride in the favorable
comments they hear on such grass-roots projects
as water spreading in Jordan, the maternal and
child health clinic in Samawe, Iraq, or the anti-
malarial DDT-spraying in many sectors of Iran.
There are many other significant projects of eco-
nomic cooperation in the field of technical assist-
ance— the Litani River Project, the Saudi Arabian
Monetary Agency, the Miri Sirf teams, etc.

The addition of section 206 to the Mutual
Security Act by Congress last summer marked

April 12, 7954

551

>

the first authorization of U.S. Government grrant
aid to the Arab States and Iran for something
more than teclmical assistance, that is, for capital
development and other purposes. Turkey had
received such funds through participation in the
Marshall plan, as had Israel for "relief and re-
settlement projects" for "refugees coming into
Israel" (more than half Israel's population).
There had been grants to Unrwa for Palestine ref-
ugees (one-fiftieth the population of the Arab
States), but there had been no grant aid as such to
the Arab States, nor to Iran.

Section 206 authorized the expenditure of $147
million in special economic aid for the Near East
and Africa. The discussion leading to its pas-
sage emphasized the administration's desire for a
more regional approach to the economic and social
problems of the area, greater flexibility with re-
spect to the appropriation of funds in accord-
ance with existing conditions at the time of com-
mitment, and the need for accelerating the
economic development of this strategic area, par-
ticularly through river and transport develop-
ment. Such acceleration could not be accom-
plished under the long-range, low-cost technical
assistance program alone.

In authorizing the appropriation of these funds
the Congress demonstrated its faith in the im-
portance of healthy cooperation in the economic
development of the area. At the time of the hear-
ings and voting, illustrative projects were pre-
sented, but blueprinted projects were not at hand,
and priority could not be assigned to situations
which had not yet developed or to degi'ees of eco-
nomic cooperation which could be expected. There
were only tentative apportionments of the funds,
but, for the first time, the U.S. Government was
able to say to the Arab States, Iran and Israel
(which was no longer to be granted money for the
relief of refugees but rather from the new regional
package), "We have a fund from which we are
ready to assist your country if you can come
forward with sound projects on wliich funds can
be committed in this fiscal year to our mutual
advantage."

An early charge on the newly established sec-
tion 206 account was for Iran and amounted to
$23.4 million.* It was made available after the
Shah had returned to Iran and General Fazlollah
Zahedi had become Prime Minister to support the
budget and consequently strengthen the new gov-
ernment which this government considered more
favorably inclined toward U.S. and Western ob-
jectives than was the Mossadegh government
which had tried to oust the Sliah.

A second use of special economic aid funds was
also for an emergency, though the amount in-
volved was much smaller — $250,000 — to finance
the transportation costs of American wheat
shipped to Akaba under the Famine Relief Act,

following President Eisenhower's determination
that it would ease conditions caused by drought in
southern Jordan.

A third emergency use of section 206 funds
was for Israel, to which a 6-month allocation of
$26 million was announced last October. The
funds will be used largely for the purchase of
foodstuffs, fodder, seeds, fertilizer, fuel, and raw
materials for the manufacture of clothing and
footwear. It is hoped that this grant will assist
Israel in further progress toward a self-sustaining
economy.

Wliat will the Government do with the remain-
ing balance in the 5 remaining months of tlie cur-
rent fiscal year? It is hoped that all of it may be
committed by June 30 for expenditure on sound
economic development projects based on thorough
blueprints and signed agreements. That is what
the U.S. Government is aiming for. In some
cases, plans are developed quite far — certainly
more fully than ever in the past. In other cases,
the materials essential to negotiations have been
delayed. In any case, a number of worthwhile
projects have been submitted which are now under
intensive study for qualification for American aid.
If mutually advantageous arrangements cannot be
worked out and it cannot be demonstrated that the
money will contribute significantly to a solution
of Near Eastern problems, funds will not be
committed.

Aid to Palestine Refugees

Our economic cooperation directed toward solu-
tion of the problems of the 870,000 imfortunate
Palestine refugees is accomplished through
Unrwa. This body has an Advisory Commis-
sion originally composed of representatives of
the U.S., U.K., France, and Turkey. Now, as a
result of action taken during the past year it in-
cludes representatives of Syria, Jordan, Egypt,
and Lebanon. The U.S. Government has appro-
priated $153 million for the assistance of the refu-
gees since 1948. Of this, $43 million was for relief
and the balance (not all of it spent) was for re-
integration. This represents approximately 65
percent of all contributions up to the present.

Tlie Unified Plan for the Development of the
Jordan Valley lately has received widespread at-
tention. Emphasis here will rather be on other
reintegration projects for the refugees, drawing on
the recent Interim Report to Congress of the Spe-
cial Near East Refugee Survey Commission
headed by Governor Edwin L. Mechem of New
Mexico.^ The report states that: "The biggest
problem faced by Unrwa in the implement afioii
of this program has been to find practicable proj-
ects at reasonable cost in countries where the refu-
gees are presently located, which are politically
acceptable to the governments concerned."

* IMd., Sept. 14, 1953, p. 349.
552

'Ibid., Jan. 18, 1954, p. 95.

Department of State Bulletin

In addition to the recently extended program
agreement between Unrwa and Jordan under
•which Unrwa agreed to reserve $40 million for
such river and power development as was feasible
and would principally benefit refugees, Unrwa
and Jordan have an $11 million program agree-
ment of 1952 to provide a living for approximately
6,000 refugee families (30,000 refugees) . A num-
ber of projects have been completed under this lat-
ter agreement. A vocational training program
estimated to cost $1 million has also been under-
taken. Still other projects include loans to pri-
vate enterprises providing employment of refugees
through the Jordan Development Bank, part of
whose capital is subscribed by Unrwa.

In Syria Unrwa has concluded a program agree-
ment with the Syrian Government which reserves
$30 million for agricultural, technical training,
educational, and other projects to provide employ-
ment for the 85,000 refugees now resident in Syria.
One agricultural settlement for 200 families (1,000
refugees) is near completion. As to larger-scale
projects in Syria, attempts have also been made to
find areas suitable for significant agricultural de-
velopment, and two survey expeditions have been
made for this purpose in the northern and north-
eastern parts of the country. The conclusion
reached by Unrwa was that opportunities existed
on State domain land not only for major schemes,
but also for many projects involving only minor
pumping from the Euphrates, which could be com-
pleted and put to use comparatively quickly. De-
tailed topographical, engmeering, and soils sur-
veys would have to be made before the suitability
of any given site for a major scheme could be ac-
curately assessed, but government permission for
these surveys has not yet been forthcoming.

The Egyptian Government has extended full
cooperation to Unrwa with respect to the 200,000
refugees at Gaza. Surveys were made 2 years ago
for underground water resources which would be
capable of supporting refugee communities in that
area. The results of these surveys were negative.
During the past year consideration has been given
to the possibility of siphoning water from a sweet-
water canal fed by the Nile, under the Suez Canal
to the Sinai Peninsula, and reclaiming lands in
that area which might benefit some 60 to 70 thou-
sand refugees. Detailed surveys as to the feasi-
bility and extent of the irrigable area, expected to
be completed within 8 months, are now being made
under a program agreement between the Egyp-
tian Government and Unrwa, for which $30 mil-
lion has been reserved by Unkwa.

Loans and Credits

The final type of U.S. Government cooperation
with the Near East is in the field of loan and
credit assistance since the Second World War. It
may be summarized as follows:

The Export-Import Bank of Washington, as of

April 12, J 954

294502—54^—8

the end of fiscal year 1953, had afforded the fol-
lowing credits: Afghanistan, $21 million author-
ized, of which $17.5 million disbursed; Turkey,
$46 million authorized, approximately $30 million
disbursed and $14 million canceled; Israel, $135
million authorized, approximately $130 million
disbursed; Egypt, $7.25 million authorized and
disbursed; Saudi Arabia, $29 million authorized,
$15 million disbursed, and the balance canceled or
allowed to expire; Ethiopia, $3 million authorized
and virtually all disbursed. Total disbursements
of Export-Import Bank development loans at end
of the last fiscal year therefore total approxi-
mately $203 million.

Office of the Foreign Liquidation Commission
credits for surplus World War II property uti-
lized by Near Eastern countries total approxi-
mately $50 million, broken down as follows : Iran,
$30 million; Egypt, $10 million; Turkey, $6 mil-
lion ; Saudi Arabia, $2 million ; Lebanon, $1.5
million; and Ethiopia, $0.5 million. Some of the
Eca/Msa/Foa (Marshall plan) aid to Turkey has
been on a loan, rather than grant, basis. LT.S.
loans to this country total $140 million. Turkey
also utilized a credit of $3 million from the U.S.
Maritime Commission.

The U.S. loans disbursed and credits utilized
by the above-named countries add up to $396
million. In addition, the U.S. owns approxi-
mately 32 percent of the shares of the Interna-
tional Bank for Reconstruction and Development
which has extended loans to Turkey, $59.6 mil-
lion; Iraq, $12.8 million; and Ethiopia, $8.5
million; or a total of $80.9 million.

Conclusion

Today, economic cooperation with the Middle
East at the governmental level, as indicated above,
may be divided into four principal categories:
technical assistance, special economic or grant aid,
aid to Palestine refugees, and loans. But what
is the outlook for the future?

The report recently issued by the President's
Commission on Foreign Economic Policy (the
"Randall Commission")^ gives us an indication of
things to come. First, the Commission recom-
mended that in general the technical assistance
program should be pressed vigorously within the
limitations of appropriations and the availability
of sound projects and skilled technicians and
should not become a big money program involving
capital investment. Secondly, it recommended
that economic aid on a grant basis should be ter-
minated as soon as possible. Where substantial
economic aid is necessary and not otherwise avail-
able, loans should be made and not grants. How-
ever, the interesting qualification which the Com-
mission made — significant to the area here
considered — was that in underdeveloped countries
moderate grants in aid might bo made where

• Ibid., Feb. 8, 1954, p. 187.

553

U.S. security interests are importantly involved.
Thirdly, the report stated that first reliance
should be placed on private investment for devel-
opment and that public investment should not be
used as a substitute.

Therefore, as far as the foreseeable future is con-
cerned, it would appear that we should be able
to look forward to a moderate though still sub-
stantial program of economic cooperation with
the countries of the Middle East along the same
general lines as at present, with greater emphasis,
however, on loans and on the role of private in-
vestment in the field of development.

• Mr. Dorsey is Deputy Director of the Office
of Near Eastern Affairs. His article is based on
an address which he delivered at the Conference
of the American Friends of the Middle East in
New York City on January 29.

Israel-Arab Relations

Statement hy Lincoln White
Department Press Officer '

The Ambassador of Israel called on the Secre-
tary today at 2 p. m. They discussed the general
problem of Israel-Arab relations with particular
attention to the recent ambush of an Israeli bus
in the Negev and existing border tensions.

The Secretary reiterated his deep regret at the
loss of life in the attack on the bus but pointed
out that the Israel-Jordan Mixed Armistice Com-
mission had not been able to identify the criminals
involved. He emphasized the necessity for fore-
bearance on the part of all parties and the avoid-
ance of any statements or acts which might further
disturb the general situation.

The Secretary said that we fully support the
United Nations Truce Supervision Organization
and believe that both parties should cooperate
with the Mixed Armistice Commissions. In par-
ticular, he expressed the hope that Israel would co-
operate with the Israel-Jordan Mixed Armistice
Cfommission in further efforts to identify and
bring to justice the perpetrators of the bus ambush
as outlined by its chairman.

In reply to a request from Ambassador Eban
that the United States join with the United King-
dom and France in bringing the situation to the
attention of the Security Council, the Secretary
replied that we would exchange views with the

' Made to correspondents on Mar. 25.

British and French Governments who, we under-
stand, were being contacted also by the Israeli Gov-
ernment. The Secretary stated tliat he believed
that both parties should adhere faithfully to their
obligations under the Armistice Agreement. He
expressed the hope that both parties would co-
operate with the Mixed Armistice Commission in
investigating all facts of the situation. Further-
more, as stated to Jordan in the past, he also hoped
that Jordan will live up to its obligations mider
article 12 of the Armistice Agreement.

German Ratification of
EDC and Conventions

statement by President Eisenhower

White House press release dated March 29

President Heuss of the Federal Republic of
Germany has signed the treaty establishing the
European Defense Community and the Conven-
tion on Relations with the Federal Republic, thus
completing final ratification of these treaties by
the Federal Republic.

I am gratified that one more country has now
completed all phases of ratification of these trea-
ties which are designed to assure a stronger Euro-
pean community and thereby contribute to the
establishment of lasting peace.

Message to Chancellor Adenauer

Press release 166 dated March 30

Secretary Dulles, through the United States
High Commissioner for Germany, on March 29
sent the folloxoing message to Chancellor Konrad
Adenauer.

I am very happy to learn that with the signature
by President Heuss of the treaty establishing the
European Defense Community and the Conven-
tions on Relations with the Federal Republic of
Germany, the ratification of these treaties has been
completed by your country. Thus another im-
portant step has been taken in the process of the
political, economic, and military integration of
Europe with which the role of Germany as a full
participant in the community of nations is so
closely allied. Once again you and your colleagues
in the Government of the Federal Republic of
Germany have demonstrated your devotion to the
cause of assuring permanent peace and security
for the free world.

554

Department of Sfofe Bulletin

Objectives of U. S. Policy In Europe

by C. Burke Elbrick

Deputy Assistant Secretary for European Affairs ^

I think it is generally accepted today that the
essential objective of my job is very similar to
yours. The main business of American diplomacy
is to protect the security of the United States. In
fact, I think it's fair to say that our foreign policy
is our first line of defense.

This has not always been true in the past. At
least, it has been true only in a very limited sense.
Throughout most of our history as a nation, the
security of the United States was affected only to
a relatively minor extent by what happened in
other parts of the world. We had trade interests
and property interests that needed protection, of
course, and we were also required to offer protec-
tion and services to American citizens abroad.
Furthermore, because of our ties of tradition and
friendship with other nations, we took a keen in-
terest in many foreign developments. However,
the fundamental security of the United States was
not threatened in any serious way.

This was true for two reasons. In the first place,
this Nation was separated from other parts of the
world by vast oceans, and no nation or likely com-
bination of nations then possessed the technical
means to launch a successful invasion of this con-
tinent. Second, the only possible combination of
power capable of threatening the United States
was found on the continent of Europe, and Europe
was divided into a number of nations competing
with one another. In other words, there was a
"balance of power" in Europe which prevented
any nation or bloc from becoming a serious threat
to our national security.

Two developments have occurred during the
first half of the 20th century which have revolu-
tionized our foreign policy and, perhaps, our en-
tire manner of living. First, as a product of such
technical developments as the airplane, the sub-
marine, the atomic bomb, and so forth, the oceans
which once guarded our shores have lost much of
their protective value. During this same period,
the balance of power system in Europe has broken

'Address delivered on Mar. 10 at the Marine Corps
School, Quantico, Va.

down. Three times within this half century we
have faced the possibility that the entire European
Continent might fall under the control of a single
hostile aggressive power. Our military forces
have fought two major wars primarily to prevent
this catastrophe to American security interests.

At the end of World War II, our essential mili-
tary objectives had been achieved. We had also
accomplished our principal immediate political
objective. At the height of Hitler's power, he
had control of all of Western and Central Europe
and a substantial portion of Russia. If the United
States had remained strictly neutral, it is more
than possible that he would have eventually added
the British Isles and the entire Soviet Union to
his empire, as well as large portions of Africa and
the Middle East. When we remember how much
military power Nazi Germany was able to muster
through the resources of Western Europe alone,
we can more clearly appreciate what dangers we
might have been forced to endure if the resources
of the United Kingdom and Russia had been
organized and harnessed to the Nazi war machine.

Postwar Division of Europe

At best, however, our political objectives were
only partially realized and were realized only at
a tremendous price. At the end of the war, Rus-
sian armies had overrun most of Eastern and much
of Central Europe. It soon became evident that
these armies could bo dislodged only by force.
Half of Europe had fallen to a dictatorship which
was soon to prove implacably hostile to the United
States. And the remainder of Europe was gravely
threatened. It looked for a while as if we had
saved the Eurasian Continent from the Nazi and
Japanese dictatorships only at the cost of having
it fall victim to the Soviet dictatorship.

Even the conquest of Eastern Europe had left
the Soviet domain far short of the empire of which
Hitler dreamed — and nearly achieved. Three
hundred million Europeans were still free. They
lived in nations which, for centuries, had domi-

Aptil 12, 1954

555

nated world affairs. They possessed a liigli level
of civilization, including the most advanced scien-
tific and technical skills. They possessed many
vital natural resources and the second most pro-
ductive industrial plant on earth. They exercised
great influence in Asia, Africa, and the Middle
East. While these nations remained free, they
could provide ports, airbases, factories, and man-
power to deter further Soviet conquest. But if the
Soviet Union could seize these nations, enslave
their peoples, and exploit their resources, it would
have gained the things it needs most to develop an
irresistible war machine. By taking over free
Europe, the Soviet Union could next move into
Asia and Africa with relative ease and eventually
confront the United States with a vastly superior
aggregation of manpower, raw materials, indus-
trial focilities, and scientific skills, leaving us no
choice but a desperate uphill battle for survival.

Russia's Greatest Asset

During the critical months following the war,
Russia's greatest asset was the weakness of free
Europe. Despite the great potential of the free
nations, the war had left them militarily naked,
economically paralyzed, and politically disrupted.

Most Western European armies had ceased to
exist. Even those nations which retained armies,
such as the United Kingdom, had demobilized most
of their forces. And the economic means needed
to rebuild their defenses were lacking. In fact,
the economic situation was so near collapse in
certain countries that it appeared possible for the
Communists to take over without firing a shot.

Millions of Europeans were homeless and hun-
gry. The war had not only destroyed their sav-
ings and their property — their homes, schools, and
churches — but had also seriously damaged the very
means of recovery. Farms had been laid waste.
Factories had been bombed out. Colonial inter-
ests and overseas investments had been lost. Trade
patterns with other parts of the world had been
disrupted. Europe faced the problem of pulling
itself up by its bootstraps without any bootstraps.

Economic instability contributed to political and
psychological demoralization. Many Europeans
suffered from a paralysis of will — from a sur-
render of hope for the future. Organized govern-
ment had ceased to exist in many countries and had
to be reestablished from bottom to top. Commu-
nist parties, having played an important role in
the resistance movements, had gained great in-
fluence and respectability. These parties now
turned their attention to sabotaging all efforts at
economic recovery and subverting normal political
processes in order to pave the way for complete
Communist domination.

Many people hoped that the Soviet Union, once
it had attained reasonable security for itself, would
not try to take advantage of the weakness of its
neighbors and would instead cooperate with other

nations in an effort to achieve world stability and
prosperity. The United States provided billions
of dollars through Unrra [United Nations Re-
lief and Rehabilitation Administration] to relieve
suffering in all parts of the world including the
Soviet orbit, and meanwhile attempted to develop
a practical universal security system through the
United Nations. We even went so far as to pro-
pose international control of atomic energy at a
time when we alone possessed atomic weapons.

However, hopes of Russian cooperation were
rapidly doomed to disappointment. The Kremlin
not only refused to give up any of the territory
its forces had seized but sought further expansion.
A Communist civil war was launched in Greece,
supported by Soviet satellite governments across
the border. Turkey and Iran were subjected to
threats and intimidation. The Iron Curtain was
clamped down over the Soviet occupation zone in
Germany, and it soon became evident that the
Kremlin was unwilling to negotiate any peace
treaty for Germany and Austria except upon
terms which would pave the way for complete
domination of those countries. Communist ele-
ments seized control of the governments in Hun-
gary and Czechoslovakia and began a civil war
in China which eventually drove the free Chinese
government from the mainland. In Western
Europe, particularly France and Italy, Communist
Parties were making a strong bid for power. From
the Atlantic to the distant Pacific, the Communist
tide rolled forward.

In view of the alarming weaknesses of Western
Europe, it was obviously unrealistic to hope for a
reestablishment of a balance of power system in
the traditional sense. The shield which had pro-
tected this country for so many generations had
been broken and could not be repaired. No longer
could America expect a "free ride" in terms of
international security ; this fact had already been
recognized during World War II. The only way
in which a balance of power could be restored was
by combining the strength of the United States
with that of free Europe. This required active
American participation in the efforts of Europe
and other parts of the free world to maintain their
independence and stabilize their societies.

Strengthening Western Europe

If Western Europe was to be converted from
an area of weakness to an area of strength, it was
evident that three types of measures were neces-
sary. Broadly speaking, these were economic,
military, and political. It was necessary to stop
the downward spiral of the European economy
and to lay a foundation for increased production
and improved living standards. It was necessary
to rebuild Europe's military defenses against the
swollen Soviet armies. Finally, it was necessary
to preserve and strengthen democratic political
institutions in Europe and to encourage the Euro-

556

Oeparfmenf of Sfafe Bulletin

pean nations to seek unity of purpose and action
among themselves. American policies in Europe
since the end of World War II have been largely
built around these three objectives. In their
broad outlines, the objectives have been consist-
ently supported by both major political parties
in this country.

ECONOMIC RECOVERY

First priority was given to European economic
recovery. This priority was compelled by the
existing circumstances. There was room for doubt
as to whether the Soviet Union was willing to
launch a full-scale military attack against Europe,
but there was no doubt whatever that a continued
deterioration of the European economy would pro-
duce a political and social chaos from which
communism would almost certainly emerge tri-
umphant. Moreover, it was unrealistic to at-
tempt a significant defense effort in Europe until
the Europeans had attained a sufficient degree of
economic recovery to support such a defense effort.

The keystone of our efforts to promote Euro-
pean economic recovery was, of course, the Mar-
shall plan, developed in 1947 and launched in 1948.
Under this program, we provided more than $12
billion of American money to bolster the Euro-
pean economy. I will not attempt to describe
this program in detail, except to point out that
it was a joint enterprise in which a major effort
was required of the European governments them-
selves. Our assistance was matched by strenuous
self-help measures, without which the substantial
results finally achieved would have been impossi-
ble. One of the important byproducts of the pro-
gram was the formation of the Organization for
European Economic Cooperation, through which
18 European nations worked together to increase
production, reduce trade barriers, and facilitate
the flow of goods throughout free Europe. This
was the first big step toward integration in Europe.

THE NATO DEFENSE SYSTEM

The development of an adequate defense pos-
ture in free Europe has also been a joint enterprise,
centering around the North Atlantic Treaty Or-
ganization. Actually, negotiations toward a col-
lective defense system first began in 1947 among
the United Kingdom, France, Belgium, the Neth-
erlands, and Luxembourg and culminated in the
Brussels Pact, which created an organization
known as the Western Union. However, it was
evident that no efl'ective defense system could be
built without U.S. membership and participation,
so further negotiations were undertaken in 1948
among the Brussels treaty powers and other At-
lantic nations. As a result, the North Atlantic
Treaty, embracing the United States, Canada, Ice-
land, the United Kingdom, and eight nations of
continental Europe was signed in April 1949.

Greece and Turkey also entered Nato in 1952, mak-
ing a total of 14 members.

Without attempting a detailed description of
the provisions of the treaty or the operations un-
dertaken thereunder, I would like to point out one
of its most unusual features. It is more than a
promissory note; it is a working contract. In
addition to the customary mutual pledges by the
member nations to assist one another in event of
attack, it provides for active peacetime coopera-
tion by the member nations to develop the means
for resisting attack. Through the North Atlantic
Treaty Organization, therefore, the Nato coun-
tries have undertaken an unprecedented common
defense program. This program has included the
development of joint strategic plans, integrated
international command arrangements, the build-
ing of common air bases and port facilities, joint
military maneuvers and exercises, coordinated
military production plans, etc. It has also in-
volved the grant of a large volume of militaiy
equipment from the United States to the military
forces of allied countries.

THE POLITICAL FRONT

In the field of political activity, the initiative
has remained primarily with the Europeans.
They have had the job of reestablishing and re-
organizing governments, developing constitutional
reform, and taking measures against subversive
elements. They have also undertaken to establish
institutions for cooperation among the European
nations in economic, political, and military mat-
ters. The United States Government has assisted
this process by helping to create the most favorable
economic and psychological environment for the
strengthening of free institutions. The work of
our occupation authorities in Germany and
Austria has contributed greatly to the growth of
democratic societies in those countries. We have
constantly urged European governments to move
more rapidly and more completely toward unity
and have adopted numerous measures to facilitate
this movement. Finally, through our overseas in-
formation program we have tried to promote un-
derstanding of the perils of communism and of
the aims and principles of the free world, thereby
providing direct assistance to the efforts of the
European governments to counteract the constant
streams of Communist propaganda with which
they are confronted.

Some Major Accomplishments

I have been compelled, for reasons of time, to
present these sweeping policies and programs in
the barest outline. Ilowever, I think it will be
useful to recite some of the major accomplishments
of these policies and programs to date:

First, there has been a very substantial improve-
ment in Europe's overall economic position. By
1950, when principal emphasis shifted from eco-

April J 2, 1954

557

nomic recovery to military defense, European in-
dustrial production had increased by more than
60 percent and was above the prewar level. Agri-
cultural production had increased by 12 percent
and inter-European trade by approximately 75
percent. Even with a greatly increased popula-
tion and with many foreign investments lost,
European living standards nad returned almost
to the prewar level.

On the military side, there has also been sub-
stantial progress. Since Nato began in 1949, more
than a million men have been added to the armed
forces of the European Nato forces. What is
more important, these forces have been organized,
trained, and given large quantities of equipment.
In 1949, there were fewer than 15 organized divi-
sions available in Western Europe, and one Nato
military expert said that "all the Russians need to
march to the Atlantic are shoes." Today they
need a lot more than that. Nato ground forces
in Europe and the Mediterranean area number
more than 80 divisions. Air forces and naval
forces have also increased substantially. The
Nato countries have also joined together in build-
ing common bases and other facilities for common
use by the Nato forces. More than 120 new air
bases, for example, are now ready for use, as com-
pared with 15 bases which were capable of han-
dling jet aircraft in 1951.

The progress in the buildup of Nato defenses
has been made possible largely through American
military assistance. As of December 1953, the
United States had delivered worldwide more than
30,000 tanks and combat vehicles, more than 30,000
artillery pieces, more than 5,000 aircraft, more
than GOO naval vessels, more than 175,000 trans-
port vehicles, and over li^ million small arms and
machineguns, as well as many other items. Ap-
proximately 75 percent of this equipment has gone
to its Nato allies. At the same time, it is well to
remember that the European governments have
by no means depended solely on United States
assistance. Their own defense expenditures have
increased 2i4 times and their military production
has quadrupled. For every dollar's worth of mili-
tary assistance which we have granted since 1949,
the European governments have spent approxi-
mately $3 for defense from their own budgets.

Wliile many European governments continue to
be relatively unstable, at least by American stand-
ards, democratic institutions are considerably
stronger than they were at the end of World War
II. In most European countries. Communist
voting strength and other Communist influences
have steadily declined. Communist paramilitary
forces have been disbanded, and it is now believed
that no Communist Party is in a position to over-
throw any free European government by force.
Meanwhile, the rise of democratic institutions and
a democratic spirit in Austria and Germany con-
stitutes one of the most striking achievements of
the postwar period.

Progress Toward Unity

Europe's progress toward internal unity has not
been as rapid as we Americans would like to see.
At the same time, it must be recognized that more
progress toward unity has been made since the
end of World War II than in the preceding 500
years. I have already mentioned the formation
of the Oeec. The Oeec members also created a
European Payments Union ^ to reduce payments
difficulties among the Oeec countries arising from
their separate currencies. Most of the Oeec coun-
tries are also members of the Council of Europe,'
where legislative leaders come together to discuss
common problems.

More striking, however, has been a development
toward unity among six nations which have ac-
tually undertaken to transfer a part of their na-
tional sovereignty to supranational institutions.
France, Germany, Italy, and the three Benelux
countries have formed the European Coal and
Steel Community,^ under which the former juris-
diction of national governments over coal and steel
production and distribution has been transferred
to an overall European body. These same six
countries have signed a treaty to establish a Euro-
pean Defense Community, within which their na-
tional defense systems will be merged in a common
army with common uniforms, a common procure-
ment system, and a common budget. Pending
ratification of this treaty, these nations have also
begun work on a draft treaty designed to establish
a European political community.

As I said earlier, the old-fashioned balance of
power in Europe cannot be restored, but the grow-
mg strength of Western Europe is making possible
a new power relationship which, with American
power added on the scales, may be able to prevent
war for the indefinite future.

No summary of the progress of postwar Europe
would be complete without reference to two things
which have not happened. First, there has been
no new war in that area, despite dire predictions
a few years ago that war was inevitable. Second,
the Communists have not gained any new territory
in the European area since the Marshall plan got
under way in 1948. The march of communism has
been halted, and it has been halted without setting
off World War III.

Future Problems

Despite the progress which has been made, I do
not want to leave the impression that all our prob-
lems have been solved. In fact, as we look to the
future, we can foresee problems which will tax our
ingenuity to the utmost. Let me briefly describe
some of these.

First, everyone agrees that we still need to attain
far greater defensive power than now exists.

' For articles on these organizations, see Bulletin of
May 12, 1952, p. 732 ; Apr. 7, 1952, p. 523 ; and June 8, 1953,
p. 799.

558

Department of Stale Bulletin

Wliile Europe is no longer a pushover, neither is
it a solid bulwark against aggression. The ground
strength of the Nato forces is still greatly in-
ferior to that of the Soviet Union and its satellites.
Nato weaknesses in the air are even more pro-
nounced. General Gruenther has stated flatly that
the present Nato forces cannot be expected to de-
feat an all-out Soviet attack against Europe.

The continued buildup of Nato defenses is
largely an economic problem. We know that a
defense program is wortliless unless it rests on a
sound economic base, and we also know that the
defense programs of most of our allies have closely
approached the limits of their present economic
capabilities. A serious economic setback in Europe
would not only wreck the Nato defense system
but would also undermine the entire fabric of
European society and risk Communist political
victories in one or more countries.

This economic limitation of the defense program
becomes especially significant when we recognize
the necessity, so clearly pointed out by Secretary
Dulles, that the Nato countries must gear their
defense plans to a "long pull." It is impossible for
us to predict a date when the Soviet Union may
decide to launch a military attack. It is equally
impossible for us to foresee a date when the Krem-
lin might choose to enter into peaceful cooperation
with its neighbors. Under these circumstances,
it is possible that we may face a long test of endur-
ance— a long period of years in which we may be
required to build and maintain strong military
defenses while at the same time preserving and
strengthening our political and economic defenses.
In a test of endurance, we cannot put all of our
eggs in one basket. We must keep all elements
of security in balance and make certain that our
defense plans are carefully tailored to economic
realities.

A second major problem arises from the fact
that Europe's basic economic difficulties have not
been resolved. The income of the average citizen
of free Europe is still less than one- third the aver-
age income of the American citizen. He also pays
about the same percentage of his income in taxes
as the average American. The rise in European
production has now begun to level off, and there
has been no opportunity for any appreciable accu-
mulation of new capital in Europe. Finally, Eu-
rope still needs to import more than it is able to
export. As a result, Europe's balance of payments
with the outside world continues to be unfavor-
able.

There is no simple solution to Europe's economic
problems. A solution can be found only by simul-
taneous action along a number of different lines.
Europe needs to find wider markets for its goods
and needs to develop freer trade within Europe
itself. The Europeans will also need to continue
a substantial volume of trade in nonstratcgic items
■with Soviet-dominated areas. They need to
attract private investment from other countries,

especially the United States. They require in-
creased supplies of raw materials from the under-
developed areas. They must learn how to use
their own resources more efficiently and to achieve
greater productivity in the use of both capital
and labor.

It may take many years to find the answers to
all these problems. Most of the answers must be
found by the Europeans themselves. It is con-
trary to our policy to continue indefinite grants of
economic assistance to Europe. At the same time,
the United States cannot simply tell Europe to
"sink or swim" because we ourselves cannot afford
to have Europe sink. For this reason, we are
carefully considering economic measures by which
the United States can assist Europe to solve its
problems. Our national economic policies, includ-
ing tariffs and trade policies, are now under re-
view, ^leanwhile, we are helping Europe to
obtain the dollars required to finance essential
imports by giving European factories an oppor-
tunity to earn dollars through the production of
military equipment and supplies in Europe.

Representatives of the United States Govern-
ment are convinced that Europe's success in solv-
ing both its defense problems and its economic
problems will depend largely upon the ability of
the European nations to achieve unity. At the
moment, for example, the most promising source
of additional defensive strength can be found in
Western Germany. However, the governments of
Western Europe have indicated that they would
not accept the reestablishment of a German na-
tional army and have insisted that a German mili-
tary contribution be made through a common
European army. This was the origin of the Edc
treaty which I have already mentioned.

Importance of EDC

The United States has strongly endorsed the
Edc treaty, not only because of the need for a
German defense contribution, but also because it
has many other values. We believe Edc will pei'-
mit Germany to recover its national independence
under conditions most favorable to the mainte-
nance and growth of democratic institutions. It
will tie Germany firmly to the West and lay a
groundwork for the gradual eradication of fears
and rivalries between France and Germany. It
will also represent a major step on the road to
overall unity in Europe and should pave the way
for further integration in economic and political
activities.

If Edc is not established, the United States has
no choice but to reappraise its basic policies in
Europe. Secretary Dulles has made this point
crystal clear. Without Edc or a satisfactory al-
ternative, a Nato defense plan which contemplates
a forward strategy in defense of the Continent ap-
pears impracticable. Without further progress

April 12, T954

559

toward unity, there seems little prospect that
Europe can ever regain a full measure of economic
and political stability. Without understanding
and cooperation between France and Germany,
Western Europe will remain a powder keg of
potential strife and conflict.

There are no good alternatives to Edc, and it is
impossible to predict what the results of a re-
appraisal of our policies might be. Europe is so
important to our own security that we must try to
avoid any course of action which might leave
Europe vulnerable to Soviet imperialism. On the
other iiand, the American Congress and the Ameri-
can people cannot be expected to support policies
and programs that have no chance of success.
Even a feeble alternative may prove to be better
than endless indecision. However, we still believe
that the European nations directly concerned will
recognize the advantages afforded by the Edc and
will soon bring it to fruition. At present, our
plans are being developed on this assumption.

Another major problem that concerns us today
is the relationship of Europe to the worldwide
struggle for freedom. President Eisenhower and
Secretary Dulles have placed special emphasis on
the need for a global approach to foreign policy.
Neither Western Europe nor the Atlantic area as
a whole can be viewed m isolation. This does not
mean less emphasis on Europe in American think-
ing, but rather a greater attention to the intimate
interrelation between the problems of Europe and
those of Africa and Asia. Just as the conquest of
Europe would open Asia, Africa, and the Middle
East to Soviet penetration, so would Communist
domination of the East strike a powerful blow at
the security and stability of free Europe. This
problem is aptly illustrated by the situation in
Indochina, where France is making painful sac-
rifices to check Communist aggression. It is vital
that our policies toward France be considered in
terms of probable effects in Indochina and South-
east Asia as a whole, and it is also necessary that
our policies toward Southeast Asia take account
of French interests and capabilities. In the face
of global Soviet expansionism, we must have a
global resistance founded on global thinking.

One important aspect of this global problem
is the situation of Eastern Europe. While the
people of Eastern Germany, Poland, Czechoslova-
kia, Bulgaria, Eumania, Hungary, and the Baltic
States remain in enslavement, it is almost impos-
sible to foresee a really stable Europe. We cannot
accept this enslavement as a permanent fact, not
only because Soviet domination of these areas
feeds Kussian power and threatens our own secu-
rity, but also because of the moral principles in-
volved. I want to make it very clear that the
United States Government does not contemplate
an attempt to liberate these areas by war. At the
same time, we will exert the utmost effort to create
the conditions by which these nations can regain

their independence and become peaceful and pro-
ductive members of the community of free nations.

Maintaining U.S. -European Friendship

The final problem which I want to mention to-
day is so obvious that it is sometime overlooked.
I refer to the problem of maintaining friendship
and respect between the United States and its
European allies. In the filial analysis, diplomacy
involves a great deal more than agreements on
military, political, and economic measures. To
a large extent, it is the business of maintaining
friendship. None of the objectives of our foreign
policy can be realized if we fail to win and keep
friends for the United States.

All of us have heard in this country a great deal
of criticism of our European allies. Some of this
criticism is reasonable, but much of it is greatly
exaggerated. At the same time, we cannot shut
our eyes to the fact that there exists in Europe,
even among people basically friendly to the United
States, serious fears of United States power, criti-
cisms of United States practices, and suspicions
of United States intentions.

I believe there is little immediate danger that
the peoples of free Europe and America will be-
come enemies. However, if we are to pursue poli-
cies aimed at long-range objectives, we must keep
in mind the problems which may arise in a long
period of years. It is no secret that the creation
of division among the nations of the free world
is one of the principal objectives of Soviet policy.
The Soviet leaders believe that the best chance for
the triumph of communism lies in splitting up the
free nations and making them waste their energies
in political and economic struggles among them-
selves.

Differences among friendly nations are inevi-
table. I see no great danger in mutual criticism,
so long as mutual criticism is kept within the
bounds of reason and so long as the peoples of
America and free Europe remember that their
common interests are much more important than
any differences which may arise. We Americans,
for example, must learn to think of our defenses
not solely in terms of our own Army, Navy, and
Air Force, but in terms of the combined military
forces available to ourselves and our allies. We
need to think of the threat to our security not
merely as a threat to New York, Chicago, or San
Francisco, but also as a threat to London, Paris,
and Berlin. AVe need to develop our economic
policies in terms of their effects on the economic
health of our allies, as well as their effect upon
American farms and industries. By developing
the attitudes of true partnership and encouraging
the European nations to do the same, I am con-
vinced that we can create a system of strength and
well-being which will preserve peace and protect
our liberties for many years to come.

560

Department of State Bulletin

Fifth Anniversary of NATO

STATEMENT BY PRESIDENT EISENHOWER

White House press release dated April 4

Five years ago today, the signing of the North
Atlantic Treaty launched a unique working part-
nership among the Atlantic peoples. Their alli-
ance for the pi'eservation ot peace and mutual
defense against Communistic aggression is now
a mighty bulwark of the free world.

Nato symbolizes the unity of free men in an
age of peril. Fourteen nations, diverse in lan-
guage and economy and custom and political struc-
ture, are joined within it because each nation is
determined to sustain its own independence.
Dedicated to a common purpose, their strength is
multiplied, their inexhaustible energies are pooled.

During my service with Nato there were many
uniforms worn, many tongues spoken at my head-
quarters. But daily I found new inspiration in
the unity of spirit among my comrades.

The inspiration remains with me; a cherished
memory, a heartening proof that free men —
united — can face any peril unafraid. Nato is
visible evidence that, in cooperation among the
free peoples, we can best preserve our common
heritage of freedom against any threat.

REMARKS BY SECRETARY DULLES >

Daniel Schorr (CBS) : Mr. Secretary, what
benefits has Nato brought us in the last 5 years ?

Secretary DrriJ:j:s : We have received a number
of advantages.

First of all, Nato has helped to prevent war. A
few years ago many people thought that another
world war was inevitable. Not only has this failed
to happen, but the danger of world war may have
receded in recent months. If so, and I hope it is so,
this is due in large part to the growing strength
and unity of the Atlantic peoples.

Nato has helped to protect free Europe against
Communist conquest. In addition to our deep
cultural and spiritual attachment to this area,
which is the fountainhead of Western civilization,
we in the United States realize that the enslave-
ment of free Europe would give the Soviet Union

' Made in a broadcast over the CBS radio network on
Apr. 4 (press release 177 dated Apr. 3).

April 72, 7954

294562—54 4

the means to attain industrial and scientific superi-
ority over our own country. This would be a ter-
rible catastrophe for the United States and the
whole free world. It is significant that the Com-
munists have not gained any new territory in
Europe since Nato was signed.

Nato has directly supplemented our national de-
fense system. Today, the protection that we get
from our own armed forces is increased by allied
forces of even greater size. And in addition, we
and our Nato allies have worked together in con-
structing a lai'ge number of joint air bases. These
bases can be used for rapid and effective retaliation
so that all told, we have gained a great deal from
Nato and can expect to gain still more as the Nato
program continues forward.

Mr. Schorr: Tliat sounds like a very valuable 5
years for us. What, then, has been the principal
shortcoming of Nato ?

Secretary Dulljss : I would say the most seri-
ous shortcoming is simply the fact that 14 sov-
ereign nations inevitably encounter difficulties in
harmonizing their policies and programs. And
this difficulty is particularly acute in Europe,
where, of course, there are longstanding rivalries
and suspicions among certain nations and these
facts have hampered cooperation in the common
interest. Now, an outstanding example is found
in the fact that the German Federal Republic, with
its large population and resources, has not yet
been permitted to contribute to the collective de-
fense system. I am convinced that Nato can be
successful in the long run only if tlie nations of
free Europe can overcome such differences and
achieve greater cooperation among themselves, in-
cluding a substantial degree of political, economic,
and military integration.

Mr. Schorr: What can be done to increase the
effectiveness of Nato in the coming years?

Secretary Dulles: It seems to me that the
answer to your last question gives the clue to what
should be done for the future. The nations of con-
tinental Europe need to continue their present
movement toward unity. Already considerable
progress has been made. Six of these continental
nations have already merged their coal and steel
industries into an independent, separate commu-
nity and they have also signed a treaty which will

561

integrate their armed forces into a European De-
fense Community. The parliaments of three of
these six countries have ah'eady fully approved
this European Defense Community Treaty. And
when all six govei'nments ratify, Western Europe
will then at last have a unified defense system, in-
cluding a much-needed German contribution, and
Nato as a whole will have a much more solid
foundation based upon the unity of central
Europe.

Once this foundation is provided, then of course,
we can move on to do other things to increase
Nato's effectiveness. We must continue to main-
tain strong and balanced defense forces and to
improve these forces as rapidly as our economic
capabilities permit. We should also continue to
explore the possibilities for closer cooperation in
political, economic, and social matters. Our long-
term aim is an enduring association of free na-
tions, capable of protecting the safety and improv-
ing the well-being of their peoples.

Mr. SciionR : You say, Mr. Secretary, that our
No. 1 goal for the future is Western European
unity and it seems that the No. 1 goal of the Eus-
sians is to try to sabotage that unity. There have
been moves in that direction even on the eve of this
Nato anniversary. Do you think any of those
Russian moves to disrupt Western European inte-
gration will succeed ?

Secretary Dulles : I don't think they will suc-
ceed. The Soviet Union is certainly trying very
hard to disrupt the Atlantic community and to
create divisions instead of union but they haven't
worked on that very successfully. I had to deal
with that when I was at Berlin at the Four Power
Ministers Conference, at which Mr. Molotov, the
Soviet Foreign Minister, was present. And he
made there quite extraordinary and sometimes al-
most grotesque efforts to try to break up the unity
of Europe. He is still trying. You refer to the
fact that a new suggestion along that line was
made very recently. I am convinced that the peo-
ples of Western Europe know that in this Nato,
in this European Community, they liave some-
thing M'hich is a very valuable, a very precious
asset. They know that the reason why the Soviet
Union is trying to break it up is not because the
Soviet Union wants really to protect the freedom
and well-being of Western Europe, but wants to
undermine it. 1 believe that these maneuvers are
seen through and I am confident that they will
fail.

Department Views on
Soviet Security Proposals

Press release 169 dated March 31

At Berlin Mr. Molotov, in an effort to prevent
the development of Western European security,
adopted two lines of attack. First, he insisted

that the North Atlantic Treaty Organization was
aggressive and should be abandoned. Second, he
proposed, as a substitute, a 32-nation European
security pact, from which the United States would
be excluded other than as an "observer" along with
Red China.i

These maneuvers were unsuccessful both by the
verdict of the Berlin Conference itself and by the
verdict of free world opinion.

In an effort to retrieve that diplomatic failure,
Mr. Molotov now comes up with new proposals
having the same purpose. He now proposes that
instead of doing away with the North Atlantic
Treaty Organization, the Soviet Union should
join it. He also proposes that instead of excluding
the United States from his proposed all-European
security treaty, the United States should join it.

The security of Western Europe is a matter of
direct concern to the Western European countries
themselves. However, since the Soviet Union now
suggests that the United States should be a par-
ticipant in, rather than be excluded from, its new
project, it is appropriate for the United States to
point out that these new Soviet proposals are sub-
ject to the basic objections which were raised at
Berlin.

It was there noted that the existing sense of
insecurity in the world was not due to lack of good

Sroniises, for these are all contained in the United
ations Charter. Collective security organiza-
tions, like Nato, have grown up because there is
no confidence that all the members of the United
Nations will observe their covenants. As Secre-
tary Dulles said at Berlin:

These special security arrangements do not have any
words that add anything not already in the United Nations
Charter. The addition which they provide is that they
are agreements between nations which, over long periods
of time, have come to trust and have confidence in each
other. They provide the element of confidence which
unfortunately has not been present on a universal basis.'

The present proposal of the Soviet Union in-
spires no confidence in the face of the continued
iron grip of the Soviet Union on its captive peo-
ples. It is a maneuver to gain admittance within
the walls of the West, to undermine its security.

Negotiations for U.S. Loan
to Coal and Steel Community

Press release 173 dated April 1

Negotiations on a U.S. loan to the European
Coal and Steel Community will begin on April 6 in
Washington. The Community will be represented
by Jean Monnet, the President of its High Au-
thority (the executive branch), and two other
members of the High Authority, Enzo Giacchero

' For text, see Buixetin of Feb. 22, 1954, p. 269.
' Ihid., Mar. 1, 1954, p. 312.

562

Department of State BuUetin

and Heinz Potthoff. Secretary Dulles, Secretary
of the Treasury Humphrey, and Mr. Stassen, Di-
rector of the Foreign Operations Administration,
will participate in the negotiations for the United
States.

The negotiations follow preliminary talks con-
cerning a loan to the Coal and Steel Community
which have taken place during tlie past months.
These talks had their origin in tlie view expressed
by President Eisenhower in June 1953, that financ-
ing of a portion of the High Autliority's invest-
ment program by the U.S. Government or one of
its agencies would foster European integration
in a tangible and useful way.^

East-West Trade Talks
With U.K. and France

Following is the text of a statement issued on
March 31 by Harold E. Stassen, Director of the
Foreign Operations Administration, upon his ar-
ri.val at Washington National Airport following
confe7'ences in London tuith representatives of the
Governments of the United Kingdom and France
on the subject of East-West trade:

Our conferences in London with representatives
of the governments of the United Kingdom and
France on the subject of East- West trade were
successful and satisfactory. We reached an
agreement. Tliat in itself is important for in
standing togetlier there is great strength and es-
sential security.

We agreed on the principles and on the pro-
cedure through which these principles would be
applied in detail, in cooperation with other
friendly countries, in the months ahead. Our
agreement is in harmony with the Battle Act
passed by the U.S. Congress and it is in accord
with the security policies of President Eisen-
hower's administration.

We do anticipate, compatible with security re-
quirements, an expanded trade with the Soviet
Union and with the Eastern European states in
the export to them of peaceful goods in exchange
for items and materials which the free world can
use. The existing tight controls on trade with
Communist China and North Korea will be
maintained.

T will report the results of our conferences to
President Eisenhower and to the Secretary of
State.

A number of the technical staff including repre-
sentatives of the Departments of State, Defense,
Commerce, and the Foreign Operations Adminis-
tration have remained in Europe to follow
through the implementation of our agreement.

' BuiXETiN of June 29, 1953, p. 927.
April 72, 1954

Return of Lend- Lease Vessels

Press release 163 dated March 26

Agreement was reached on March 26 with repre-
sentatives of the Soviet Government on the dates
and procedures for return to U. S. control of 38
small naval craft loaned to the Soviet Union under
the World War II lend-lease program. The 38
craft, consisting of 12 motor torpedo boats and 26
submarine chasers, are to be returned at the port
of Istanbul during the months of May and June
1954.

These craft are part of a group of 186 naval
craft, the return of which the United States first
requested on September 3, 1948. The Soviet Gov-
ernment agreed to return the 186 craft on October
20, 1953, and on December 28, 1953, representa-
tives of the two Governments began to work out
the necessary details for the return of the craft.

Discussions are continuing on the ports, dates,
and procedures for the return of the other 148
naval craft.^

Aircraft Incident on
Czechoslovak-German Border

Press release 161 dated March 25

Text of U.S. Note

After a careful investigation of an incident on
the Czechoslovak-German border on March 12,
195!^, in which Czechoslovak fghter aircraft un-
justifiably attacked two U.S. Navy planes, damag-
ing one, the American Embassy in Prague de-
livered a note to the Czechoslovak Ministry of
Foreign Affairs on March 2If, 1054, in response to
a Czechoslovak note of pr'otest received March 13.
Following is the text of the substantive portion of
the Embassy'' s note:

The competent American military authorities
have made a detailed investigation of the incident
alleged in the Ministry's note and have found that
two American aircraft on a routine training flight
did in fact through error in navigation cross the
Czechoslovak border at approximately the hour
stated in the Ministry's note and thus penetrated
inadvertently into Czechoslovakia. Unaware of
their error, these aircraft were peacefully return-
ing to their base when set upon without warning
by Czeclioslovak figliter aircraft who crossed into
the territory of the German Federal Republic.

The investigation established witliout any ques-
tion tliat no warning was given by the Czechoslo-
vak aircraft before oj)ening fire and despite this
hostile act neither of the American aircraft ever
fired upon or attempted to fire ui)on the Czccho-

' For tpxts of conimuniontions on this subject exchanged
during September-Decemher, 195.'}, see Bulletin of Jan.
11, 1954, p. 44 ; for a summary of earlier phases of the
negotiations, see ibid., June 2, 1952, p. 879.

563

Slovak aircraft. Eeports from reliable witnesses
and eirnity shell cases found within the territory
of the German Federal Republic confirm that the
attack was carried on at 1402 hours central Euro-
pean time at an estimated altitude of G,000 feet
when the American aircraft were flying over the
territory of the German Federal Republic. This
penetration of the German border by the Czecho-
slovak MIG 15 fighter took place near the town
of Waldmuenchen, longitude 49 degrees 23
minutes north and latitude 12 degrees 43 minutes
east.

The Embassy wishes to express its regrets for
the unintentional violation of the Czechoslovak
territoi'y by American aircraft but must at the
same time protest against the unjustifiable hostile
acts committed by Czechoslovak fighters against
American aircraft.

The Embassy wishes also to request that investi-
gation be undertaken regarding both the unwar-
ranted attack on American aircraft and the viola-
tion of the territory of the German Federal Re-
public by at least one Czechoslovak MIG 15
fighter plane. The Embassy would appreciate
being informed of the results of the investigation
as well as disciplinary action taken against the
guilty persons involved.

Czechoslovak Note of March 13

[Dnoffleial translation]

At 1330 Central European Time on March 12,
1954, two military aircraft bearing U.S. markings
entered Czechoslovak air space in the area south-
west of Domazlice at 12 degrees 51 minutes 40
seconds longitude and 49 degrees 20 minutes 30
seconds latitude. The aircraft flew in from the
U.S. zone of Germany and continued to fly over
Czechoslovak territory up to an area east of
Jachymov at 13 degrees 8 minutes 15 seconds
longitude and 50 degrees 18 minutes 30 seconds
latitude, where they turned south.

On meeting a Czechoslovak military aircraft,
the U.S. planes disobeyed an order to follow it
and attempted to attack it. The Czechoslovak
pilot was forced to fire in self-defense. Both U.S.
planes then disappeared in the clouds. The
Ministry of Foreign Affairs wishes to express the
most determined protest on belialf of the Czecho-
slovak Government against this repeated serious
violation of Czechoslovak air space by U.S. mili-
tary aircraft.

Pan American Day, 1954

A PROCLAMATION'

Whebeas the American Republics jointly and severally
honor April 14 as a date of Hemisphere significance, since
that day sixty-four years ago marked the beginning of
the association which has developed into the Organization

• No. 3046 ; 19 Fed. Reg. 1593.
564

of American States and in which the twenty-one Amer-
ican Republics are Member States ;

Whereas the Tenth Inter-American Conference this
year focuses attention once again upon the fundamental
Importance of inter-American solidarity as an indispensa-
ble bulwark of the free world ;

Whereas the reciprocal friendship, mutual respect, and
steadfast cooperation of the American Republics stand as
an example which other nations have come to recognize
and accept as a working-model for international relation-
ships;

Whereas for all of the foregoing reasons April 14 is a
recurrent occasion for thanksgiving and rejoicing on
the part of the people of the United States in common with
the sister nations of America :

Now, THEREFORE, I, DWIGHT D. EISENHOWER, Presi-
dent of the United States of America, do hereliy proclaim
Wednesday, April 14, 1954, as Pan American Day, for
celebration by the people of this nation as the day of
the Americas and a day for expressing that good will
toward the other American peoples and that faith in our
mutual adherence to the principles of freedom and democ-
racy which have inspired our independence as nations
and cemented our cooperation as neighbors.

I call upon officials of the Federal, State, and local
Governments ; representatives of civic, educational, and
religious organizations ; agencies of the press, radio, tele-
vision, motion picture, and other media of communica-
tion ; and all the people of the United States of America,
to cooperate in fitting observance of Pan American Day,
l>y ceremonies or other public activities appropriate to
the occasion, as a symbol of inter-American .solidarity.

In witness whereof, I have hereunto set my hand and
caused the Seal of the United States of America to be
affixed.

Done at the City of Washington this twentieth day of

March in the year of our Lord nineteen hundred

[seal] and fifty-four, and of the Independence of the

United States of America the one hundred and

seventy-eighth.

X^ Lj^.^^ L'C~Z..J U-tUu^ A<rt<*^

By the President :

John Foster Dulles

Secretary of State.

Unsettled or Unpaid Claims
Against Cuba

Press release 157 dated March 24

On August 10, 1953, the Department of State
announced, with reference to unsettled or unpaid
claims pending against tlie Government of Cuba
that arose prior to October 10, 1940, and which
had not been adjudicated in the Cuban courts,
that the Cuban Government had extended the
time for their submission to September 30, 1953.'

The Department of State is now informed that
the Cuban Government has limited the period for
the submission of documentary evidence in sup-
port of sucli claims, to 45 calendar days after
March 15, 1954, and that this period will not be
extended.

• Bulletin of Sept. 7, 1953, p. 319.

Department of State Bulletin

U.S.-Mexican Migratory Labor
Commission Membership

Press release 175 dated April 3

The Department of State today announced the
membership of the U.S. Section of the United
States-Mexican Joint Migratory Labor Commis-
sion, created as a feature of the new Migrant Labor
Agreement between the two Governments signed
March 10, 1954.^

The U.S. Section will be under the chairman-
ship of Walter Thurston, Commissioner represent-
ing the Department of State. Mr. Thurston is a
former U.S. Ambassador to Mexico and is now
serving as Codirector of the Mexican-United
States Commission for the Prevention of the
Foot-and-Mouth Disease.

Raymond A. McConnell, Jr., editor of the
Nehraska State Journal^ Lincoln, Nebr., has been
named as Commissioner representing the Depart-
ment of Justice. John E. Gross, Regional Direc-
tor at Denver, Colo., for the Bureau of Employ-
ment Security, United States Department of
Labor, will be Commissioner representing the
Labor Department. The United States Depart-
ment of Agriculture will be represented on the
Commission in an advisory capacity by L. B. Tay-
lor, Director, Food and Materials Requirements
Division, Commodity Stabilization Service.

The Joint Migi-atory Labor Commission is
scheduled to function until October 31, 1954, and
will, as its principal responsibility, observe the
migrant labor movement between Mexico and the
United States in both its legal and illegal aspects,
making recommendations to the two Governments
for possible improvement in the operation of the
agreement and for methods of deterring the illegal
traffic. In addition, it will study a number of
technical features of the agreement and any other
problems which may be referred to it by the two
Governments. It will not be vested with adminis-
trative responsibilities or negotiating powers.

The first meeting of the Commission is scheduled
for April 5 in Mexico City.

Quota on Rye Imports

White House press release dated March 31

The President today issued a proclamation
putting into effect the recommendations of the
U.S. Tariff Commission with respect to the im-
portation of rye, rye flour, and rye meal."

The proclamation provides for an import quota

' For a joint statement by the Department of State and
the Mexican Ministry of Foreign Relations regarding the
signing of the agreement together with a summary of the
agreement's principal points, see Bulletin of Mar. 29,
19.54, p. 467.

' Copies of the Tariff Commission's report on rye may
be obtained by addressing requests to the U.S. Tariff
Commission, 8th and E Sts. NW., Washington 25, U. C.

of 31 million pounds of rye, rye flour, and rye
meal, from all sources, from the date of the procla-
mation until June 30, 1954, and for a quota of
186 million pounds of rye, rye flour, and rye meal,
from all sources, during the period July 1, 1954,
to June 30, 1955.

The proclamation, issued under section 22 of
the Agricultural Adjustment Act, was found nec-
essary in order to prevent imports from materially
interfering with the domestic price-support pro-
gram for rye. Rye imports thus far in the cur-
rent crop year have increased sharply in
comparison with the previous year. At the same
time, a record j)ercentage of the 1953 crop has
been placed under price-support loans and burden-
some stocks are in prospect.

In one respect, the quota period, the President
modified the recommendation of the Tariff Com-
mission. Instead of a continuing restriction on
rye imports, as the Commission suggested, the
President provided for the termination of the
quota on June 30, 1955. A new investigation by
the Commission and a fresh consideration of the
facts by the President would, therefore, be re-
quired if there appeared to be a need for restric-
tive measures against imports of rye beyond the
terminal date of this proclamation.

TEXT OF PROCLAMATION 3048'

Whebeas, pursuant to section 22 of the Agricultural
Adjustment Act, as added by section 31 of the act of
August 24, 1935, 49 Stat. 773, reenacted by section 1 of
the act of June 3, 1937, 50 Stat. 246, and as amended by
section 3 of the act of July 3, 1948, 62 Stat. 1248, section 3
of the act of June 28, 1950, 64 Stat. 261, and section 8(b)
of the act of June 16, 1951, 65 Stat. 72 (7 U. S. C. 624),
the Secretary of Agriculture advised me there was reason
to believe that rye, rye flour, and rye meal are being or
are practically certain to be imported into the United
States under such conditions and in such quantities as to
render or tend to render ineffective, or materially inter-
fere with, the price-support program undertaken by the
Department of Agriculture with respect to rye pursuant
to sections 301 and 401 of the Agricultural Act of 1949,
as amended, or to reduce substantially the amount of
products processed in the United States from domestic
rye with respect to which such program of the Depart-
ment of Agriculture is being undertaken ;

Whereas, on December 9, 1953, I caused the United
States Tariff Commission to make an investigation under
the said section 22 with respect to this matter;*

Whereas the said Tariff Commission has made such
investigation and has reported to nie its findings and rec-
ommendations made in connection therewith;

Whereas, on the basis of the said investigation and
report of the Tariff Commission, I lind that rye, rye flour,
and rye meal, in the aggregate, are being and are prac-
tically certain to conliiiuo to be imported into the United
States under such conilitinns and in such quantities as to
interfere materially with and to tend to render ineffective
the .said price-support program with respect to rye, and
to reduce substantially the amount of products processed
in the United States from domestic rye with respect to
which said price-support program is being undertaken;
and

Whereas I find and declare that the imposition of the

' 1!) Fed. Reg. 1S07.

• I'.ulletin of Jan. 4, 1954, p. 22. The President's letter,
dated Dec. 9, 1953, was sent on Dec. 10.

April 12, 7954

565

quantitative limitations hereinafter proclaimed is shown
by such investigation of the Tariff Commission to be neces-
sary in order that the entry, or vs^itbdrawal from ware-
house, for consumption of rye, rye flour, and rye meal
will not render ineffective, or materially interfere with,
the said price-support program :

Now, THEREFORE, I, DWIGHT D. EISENHOWER,
President of the United States of America, acting under
and by virtue of the authority vested in rae by the said
section 22 of the Agricultural Adjustment Act, as amended,
do hereby proclaim that

(1) the total aggregate quantity of rye, rye flour, and
rye meal which may be entered, or withdrawn from ware-
house, for consumption in the period beginning on the
date of tiiis proclamation and ending at the close of .Tune
30, 1954, shall not exceed 31,000,000 pounds, of which not
more than 2,500 pounds may be in the form of rye flour
or rye meal ; and

(2) the total aggregate quantity of rye, r.ye flour, and
rye meal which may be entered, or withdrawn from ware-
house, for consumption in the 12-month period beginning
July 1, 1954, shall not exceed 186,000,000 pounds, ot which
not more than 15,000 pounds may be in the form of rye
flour or rye meal,

which permissible total quantities I find and declare to be
proportionately not less tlian 50 per centum of the total
quantity of such rye, rye flour, and rye meal entered,
or withdrawn from warehouse, for consumption during
the representative period July 1, 1950 to June 30, 1953.
inclusive.

The provisions of this proclamation shall not apply to
certified or registered seed rye for use for seeding and
crop-improvement purposes, in bags tagged and sealed by
an oflicially recognized seed-certifying agency of the
country of production, if

(a) the individual shipment amounts to 100 bushels
(of 56 pounds each) or less, or

fb) the individual shipment amounts to more than
100 bushels (of 56 pounds each) and the written approval
of the Secretary of Agriculture or his designated repre-
sentative is presented at the time of entry, or bond is
furnished in a form prescribed by the Commissioner of
Customs in an amount equal to the value of the merchan-
dise as set forth in the entry, plus the estimated duty as
determined at the time of entry, conditioned upon the
production of such written approval within six months
from the date of entry.

In witness whereof, I have hereunto set my hand and
caused the seal of tlie United States of America to be
affixed.

Done at the City of Washington this thirty-first day of

March in the year of our Lord nineteen hundred

[seal] and fifty-four, and of the Independence of the

United States of America the one hundred and

seventy-eighth.

^y (.JLS-^ C.'lZ^ Cj-A^i.^ X-rto^

By the President :

John Foster Dulles

Secretary of State.

Wheat To Be Provided
for Afghanistan Aid

Press release 152 dated March 23

The Governments of the United States and
Affrlianistan on March 20 sio;ned an agreement
under which the United States will provide 12.000
tons of wheat or wheat flour to meet a threatened

food shortage in Afghanistan. The aid will be
sent under section 550 of the Mutual Security Act
of 1951, as amended.' which authorizes the use of
mutual security funds to finance the purchase of
surplus agricultural commodities produced in the
United States. It further authorizes the President
to enter into agreements with friendly countries
for the sale and export of these commodities and
the acceptance of local currencies in payment.

This agreement was entered into at the request
of the Government of Afghanistan, which found
that the food requirements of its people could not
be met during the coming months without outside
assistance.

The Afghan funds received in payment for the
wheat or wheat flour will be used, as authorized by
the mutual security legislation, for helping in the
economic development of Afghanistan.

The Foreign Operations Administration will
administer the program.

U.S.-Phiiippine Consultations
on Trade Relations

Press release 151 dated March 22

FoUsiuing is the text of an annoitncement inade
on March 22 hy the U.S. and Philippine Govern-
ments :

The American Embassy in Manila has advised
President Magsaysay that the Government of the
United States, after reviewing the Philippine pro-
posals relating to the provisions of the 1946 Trade
Agreement concerning trade, finance, treatment of
investment, and immigration," is prepared to con-
sult with the Philippine Government on possible
modifications of the present Agreement.

The United States is also prepared to consider
commercial matters not covered by this Agreement
which maj' be of mutual interest to both countries.
In agreeing to such consultations, however, the
United States indicated that, while it is prepared
to consider possible alternative tariff arrange-
ments, it does not believe that the selective free
trade proposal advanced by the Philippine Gov-
ernment in its note of May 5, 1953,^ offers a satis-
factory basis for future trade relations.

Any change of the existing Agreement would
require action by the Congresses of both Govern-
ments.

In conjunction with the decision to enter into
consultations. President Magsaysay requested that
the reciprocal free-trade period provided for in
the present Agreement be extencfed for eighteen
months beyond July 3, 1954. It was agreed that
the Congresses of both countries would be re-
quested to enact appropriate legislation imple-
menting this request.

' For text, see Bxtlletin of Nov. 9, 1953, p. 639.
" BUI.LETIN of Sept. 7, 1953, p. 316.
' IM(f., p. 317.

566

Department of State Bulletin

Convictions for Illegal
Export of War Materials

Press release 156 dated March 23

The conviction today in Fedei'al Court at Balti-
more, JNId., of Air Union. Inc., and Henry L.
Knight of Bethesda, Md., brings to a successful
conclusion several years of intensive investigation
by the Department of State and the Customs Bu-
reau in Europe, South America, and in the United
States of suspected illegal diversions of war
materials.

George Cochran Doub, the U.S. Attorney in
Baltimore, prosecuted the case as the first court
trial of a conspiracy to divert war materials to
Iron Curtain destinations.

Witnesses were brought from Europe and South
America to testify at the trial.

It is believed that the determined action taken
against the conspirators in this case will serve as
a deterrent to others who may be tempted to dis-
regard legal prohibitions on the exportation of
arms, ammunition, and implements of war to Iron
Curtain countries.

Morehead Patterson Appointed
Chairman of U.N. Day Committee

Press release 164 dated March 26

Secretary Dulles on March 28 announced the
appointment of Morehead Patterson, chairman
and president of the American Machine and
Foundry Company of Xew York, as 1954 Chair-
man of the U.S. Committee for U.N. Day.

In amiouncing the appointment, Secretary
Dulles said that the U.N. Day program, spear-
headed for many years by the U.S. Committee for
U.N. Day, is important to our continued, firm
support of the United Nations.

Mr. Patterson in accepting the appointment
said he did so not only because he has faith in the
purpose of the United Nations but because he is
"convinced that fundamental to the strength and
effectiveness of the U.N. as an organization dedi-
cated to peace is the understanding and support
by the American people." He said : "Tlie annual
observance of U.N. Day provides the only na-
tional focus for furthering such public under-
standing and support."

Mr. Patterson is a director and officer of a num-
ber of major corporations, and served from 1942
to 19-1:4 with the War Production Board. He is a
director of the National Industrial Conference
Board and a trustee and member of the Executive
Committee of the U.S. Council of the Interna-
tional Chamber of Commerce. Earlier this month
Secretary Dulles appointed Mr. Patterson a mem-
ber of the Public Committee on Personnel which
is studying and will advise on measures necessary

to increase the effectiveness of the professional
service.

The U.S. Committee for U.N. Day was estab-
lished by the U.S. Government in 1948 in response
to a U.N. General Assembly Resolution that Oc-
tober 24 be observed annually as U.N. Day.

Each year the Secretary of State appoints the
Chairman for the U.S. Committee for U.N. Day,
which oi'ganizes the observance of U.N. Day in
this country. The Conmiittee is composed of more
than 100 national organizations representing civic
interests, business, labor, agriculture, veterans, re-
ligion, education, welfare, youth, women, and
trade. The 1953 Chairman was Thomas J. Wat-
son, Jr., president of the International Business
Machines Corporation.

TREATY INFORMATION

Current Actions

MULTILATERAL

Slave Trade

Protocol amending the slavery convention signed at
Geneva on September 2.5, 1926 (46 Stat. 2183), and An-
nex. Done at New York, Dec. 7, 1953. Protocol enters
into force on the date on which two states shall have
become parties thereto ; the Annex enters into force when
23 states have become parties to the Protocol.

Signatures:

United States Dec. 16,1953'

Australia Dec. 9,1953

Austria Dec. 7,1953

Belgium Feb. 24, 1954"

Canada Dec. 17,1953

China Dec. 7, 1953 '

France Jan. 14, 1954

Greece Dec. 7,1953 =

India Mar. 12, 1954

Italy Feb. 4,1954

Liberia Dec. 7, 1953

Mexico Feb. 3, 1954

Monaco Jan. 28,1954'

Netherlands Dec. 15, 1954

New Zealand Dec. 16, 19,53

Norway Feb. 24,1954'

Switzerland Dec. 7,1953

Union of South Africa Dec. 29, 19.53

United Kingdom Dec. 7,1953

Yugoslavia Feb. 11,1954

' Signed subject to acceptance.
' Signed subject to ratification.

BILATERAL
Bolivia

Agreement embodying operations, exemptions, and anti-
attachment provisions applicable to all agreements now
in effect, or which may hereafter be entered into, pursu-
ant to the general agreement for technical cooperation
of Mar. 14, 1951 (TIAS 2221). Effected by exchange of
notes at La Paz Aug. 27, 1953, and Jan. 15, 1954. En-
tered into force Jan. 15, 1954.

April 12, 1954

567

China

Agreement relating to the loan to China of two destroyers,
to be retained and used in accordance with the Mutual
Defense Assistance Agreement, as amended (TIAS 2293
and 2604). Effected by exchange of notes at Taipei Jan.
13, 1954. Entered into force Jan. 13, 1954.

Germany

Agreement concerning assistance to be rendered by a Ger-
man Red Cross hospital in Korea. Signed at Washing-
ton Feb. 12, 1954. Entered into force Feb. 12, 1954.

Japan

Agreement relating to the sending of technical missions by
Japan to the United States to study the production of
defense equipment and supplies. Effected by exchange
of notes at Washington Jan. 21, 1954. Entered into force
Jan. 21, 1954.

STATUS LISTS'
Treaty of Peace With Japan

Signed at San Francisco September 8, 1951

Signatory state

Argentina

Australia

Belgium

Bolivia

Brazil

Cambodia

Canada

Ceylon

Chile

Colombia

Costa Rica

Cuba

Dominican Republic . .

Ecuador

Egypt

El Salvador

Ethiopia

France

Greece

Guatemala

Haiti

Honduras

Indonesia

Iran

Iraq

Laos

Lebanon

Liberia

Luxembourg

Mexico

Netherlands

New Zealand

Nicaragua

Norway

Pakistan

Panama

Paraguay

Peru

Philippines

Saudi Arabia

Syria

Turkey

Union of South Africa . .
United Kingdom of Great

Britain and Northern

Ireland.
United States of America .
Uruguay

Date of deposit of

instrument of

ratification

Apr. 9, 1952
Apr. 10, 1952
Aug. 22, 1952

May 20, 1952
June 2, 1952
Apr. 17, 1952
Apr. 28, 1952

Sept. 17, 1952

Aug. 12, 1952

June 6, 1952

Dec. 30, 1952

May 6, 1952 '

June 12, 1952

Apr. 18, 1952

May 19, 1953

May
Sept.

1, 1953
4, 1953

June 20, 1952
Jan. 7, 1954
Dec. 29, 1952

Mar. 3,
June 17,
Apr. 10,
Nov. 4,
June 19,
Apr. 17,
Apr. 10,
Jan. 15,
June 17,

1952
1952
1952
1952
1952
1952
1953
1953
1952

Mar. 13, 1954
Dec. 29, 1952
Julv 24, 1952
Sep't. 10, 1952
Jan. 3, 1952

Apr. 28, 1952 «
Dec. 2, 1952

Date of entry
into force *

Apr. 28, 1952
Apr. 28, 1952
Aug. 22, 1952

Mav 20, 1952
June 2, 1952
Apr. 28, 1952
Apr. 28, 1952

Sept. 17, 1952
Aug. 12, 1952
June 6, 1952

Dec. 30, 1952
May 6, 1952
June 12, 1952
Apr. 28, 1952
May 19, 1953

Mav
Sept.

1, 1953
4, 1953

June 20, 1952
Jan. 7, 1954
Dec. 29, 1952

Apr. 28,
June 17,
Apr. 28,
Nov. 4,
June 19,
Apr. 28,
Apr. 10,
Jan. 15,
June 17,

1952
1952
1952
1952
1952
1952
1953
1953
1952

Mar. 13, 1954
Dec. 29, 1952
July 24, 1952
Sept. 10, 1952
Apr. 28, 1952

Apr. 28, 1952
Dec. 2, 1952

STATUS LISTS 3— Continued
Treaty of Peace With Japan — Continued

Signatory state

Date of deposit of

instrument of

ratification

Date ofentrf

into force <

Venezuela

Viet-Nam

Japan

June 20, 1952
June 18, 1952
Nov. 28, 1951

June 20, 1952
June IS, 1952
Apr. 28, 1952

' As of Apr. 1, 1954.

* The Treaty of Peace with Japan, In accordance with the provisions of
article 23 (a) thereof, entered into force on Apr. 28, 1952, at 8:30 a. m., Eastern
Standard Time, between the Governments of Argentina, Australia, Canada,
France, Mexico, New Zealand, Pakistan, the United Kingdom of Great
Britain and Northern Ireland, the United States of America, and Japan.

* Instrument of ratification Included two declarations.

* Instrument of ratification included a declaration.

Protocol

(To the Treaty of Peace with Japan)
Opened for signature at San Francisco on September 8, 1951

State

Republic

Australia

Belgium .

Cambodia

Canada .

Ceylon .

Dominican

Egypt. .

Ethiopia .

France .

Greece .

Haiti . .

Indonesia

Iran . .

Iraq . .

Laos . .

Lebanon .

Liberia .

Luxembourg

Netherlands

Pakistan . .

Saudi Arabia

Syria . . .

Turkey . .

United Kingdom of Great
Britain and Northern
Ireland

Uruguay

Viet-Nam

Japan

New Zealand

Sept. 8

Sept. 8

Sept. 8

Sept. 8

Oct. 3

Dale of entry into
force

Apr. 28,
Aug. 22,
June 2,
Apr. 28,
Apr. 28,
June 6,
Dec. 30,
June 12,
Apr. 28,
May 19,
May 1,

1952
1952
1952
1952
1952
1952
1952
1952
1952
1953
1953

June 20, 1952
Jan. 7, 1954
Dec. 29, 1952

June 17, 1952
Apr. 28, 1952
Mar. 13, 1954
Dec. 29, 1952
July 24, 1952

Apr. 28, 1952
Dec. 2, 1952
June 18, 1952

Apr. 28, 1952

Agreement for the Settlement of Disputes Arising
Under Article 15 (a) of the Treaty of Peace With
Japan

Opened for signature at Washington on June 12, 1962

State

Argentina

Australia

Belgium

Cambodia

Canada

Ceylon

Chile

Cuba

Dominican Republic

Date of signature

Oct.
Aug.
July
Aug.
June
June
Aug.
Aug.
June

3, 1952

12, 1952
1, 1952

13, 1952
13, 1952
16, 1952

8, 1952
15, 1952
12, 1952

Date of entry into
force

Oct. 3, 1952
Aug. 12, 1952
Aug. 22, 1952
Aug. 13, 1952
June 13, 1952
June 16, 1952

Aug. 15, 1952
June 12, 1952

568

Department of State Bulletin

Agreement for the Settlement of Disputes Arising
Under Article 15 (a) of the Treaty of Peace With
Japan — Continued

State

France

Greece

Haiti

Iraq

Lebanon

Liberia

Mexico

Netherlands

New Zealand

Norwa.v

Pakistan

Turkey

Union of South Africa . .

United Kingdom of Great
Britain and Northern
Ireland

United States of America .

Venezuela

Japan

Date of signature

July

June

Sept.

May

Oct.

Aug.

Aug.

Mar.

June

Sept.

July

July

Jan.

24, 1952
20, 1952
15, 1952

15, 1953
3, 1952
5, 1952

11, 1952
5, 19.53'

19, 1952
9, 1952

16, 1952
18, 1952

7, 1953

Julv 14, 1952

June 19, 1952

Feb. 3, 1954

June 12, 1952

Date of tntrs into
force

July 24, 1952
May 19, 1953
May 1, 1953

Jan.

Dec.

Aug.

Sept.

June

Sept.

Julv

July

Jan.

7, 1954
29, 1952
11, 1952
10,1953'
19, 1952

9, 1952
16, 1952
24, 1952

7, 1953

July 14, 1952
June 19, 1952
Feb. 3, 1954

' Signed with a rcservntion.

Israeli Complaint Against Egypt
Regarding Shipping Restrictions

Statement hy Henry Cabot Lodge, Jr.
U.S. Representative to the United Nations ^

U.S. /U.N. press release dated March 25

The, issue before us is the compliauce of a vahiecl
member of the United Nations with a decision
taken 21^ years ago by tlie highest body of this
organization charged witli the maintenance of
international peace and security. After examin-
ing the facts and arguments presented by both
sides, this Council adopted a resolution on Sep-
tember 1, 1951,- whicli continues to apply to the
facts as we have heard them relating to the com-
plaint now under consideration. The resolution
of 1951 was adopted after the parties themselves
had entered into a general armistice agreement
which had as one of its principal purposes the
promotion of permanent peace in Palestine. The
resolution stems from that agreement. The basic
issues are the same as those considered then, and
in our opinion, nothing has happened since 1949,
when the Armistice A.greement was signed, or
since 1951, when the resolution was adopted, to
alter their validity or significance to the peace of
the area.

Throughout the history of the Palestine Ques-
tion the United Nations has sought a peaceful,
just, and equitable settlement of the many com-

S Heated problems arising out of the Palestine con-
ict. The decisions of the various organs of the
United Nations have not always satisfied our own
views 100 percent. But we have consistently

' Made in the Security Council on Mar. 25.
' U.N. doc. S/2208/Rev. 1.

sought to respect and give effect to the combined
judgment which those decisions represent. We,
for our part, feel that the parties directly con-
cerned in these questions have an equal duty to
respect and make every reasonable effort to give
effect to the combined judgment of the United
Nations, whether expressed m the Security Coun-
cil or in the General Assembly, or other competent
organs. We must say frankly that the desire of
the interested parties to do so has not always been
apparent. If, disregarding the collective efforts
of the United Nations, the parties bring the house
down upon themselves, it is they who will suffer
most. This may seem like a strong statement, but
candor compels it.

When the United Nations was established, such
situations as these were tlie reason why we com-
bined together to pool some of our resources and
to subject some of our interests to the judgment
of the majority. It seems to us that the parties to
the Palestine Question are losing sight of the im-
mense value to themselves that this process repi-e-
sents. None of us can stand alone; disregard of
the Council's view in one instance encourages re-
calcitrance in another. The whole fabric of inter-
national cooperation inevitably suffers. Thus, to
repeat, the question before us is one of compliance
with a decision of the United Nations. That deci-
sion was based on several important considera-
tions, one of which was that, and I quote, "neither
party can reasonably assert that it is actively a
belligerent or requires to exercise the right of
visit, search and seizure for any legitimate purpose
of self-defense."

In our opinion, this principle is equally applica-
ble to the Suez Canal and to any waters outside
the Canal. This principle and the decision of
the Council in its resolution of 1951 should be ap-
plied by the parties themselves through the Mixed
Armistice Conunission which they themselves set
up. Differences arising between the parties under
the Armistice Agreement should always, in our
opinion, be handled as fully as possible in tlie first
instance by the Mixed Armistice machinery. An
exception to tliis rule could weaken the effective-
ness of that machinery. We believe that the Mixed
Armistice Commission, in considering the specific
complaint witii respect to actions in tlie Gulf of
Aqaba, must be bound not only by the provisions
of tlie Gener;il Armistice Agreement, but should
act also in the light of paragraph 5 of the resolu-
tion of September 1, 1951.

We therefore fully support the draft resolution
presented to this Council by New Zealand.'' We
hope that the members of the Council will like-
wise give it their full sup])ort in the knowledge
that there is involved here the all-iuiixn-tant ques-
tion of peace and secui-ity in the Near East. The
representative of Egypt [Mahmoud Azmi], in the
statement of his Government's viewpoint pre-
sented to us at our meeting on March 12, has re-

" U.N. doc. S/3188/Corr. 1 dated Mar. 19.

April 12, 1954

569

ferred to the "complete good \yill of Egypt" and
"its efforts to prepare the ground for a reasonable
solution." He also, quite properly, called for simi-
lar efforts by the Government of Israel. We could
not fail to endorse such sentiments. We are con-
vinced that they can be given effect by acceptance
and reaffirmation of the Council's decision of Sep-
tember 1, 1951. We hold similar views with re-

spect to the various other decisions of the United
Nations on this difficult question of Palestine. We
hope that these views will continue to be the views
of all responsible members, whether charged with
the peculiar responsibility of membei-ship in this
Council or otherwise. In this spirit we will vote
for the draft resolution proposed by the delegation
of New Zealand.*'

THE CONGRESS

Legal Basis for Agreements
With Japan

On March 15 Sen. H. Alexander Smith., of Neto
Jersey, addressed to the Secretary of State a com-
munication regarding the Mutual Defense Assist-
ance Agreement and related agreements recently
signed at Tokyo.* Senator Smith raised the ques-
tion of whether or not executive agrecjnents of this
nature require any action by the Congress, in addi-
tion to the legislation already in existence, and
especially ivhether these under takings should he
considered, as treaties needing the advice and con-
sent of the Senate. Folloioing is the text of a re-
ply to Senator Smith from thruston B. Morton,
Assistant Secretary for Congressional Relations : °

March 23, 1954.

My Dear Senator SanTii : The Secretary has
asked me to reply to your letter of March 15, 1954,
which raises the question whether tlie Mutual De-
fense Assistance xVgi-eeraent and other agreements
signed with Japan on March 8 should be submitted
to the Senate for its advice and consent. You are,
of course, correct in your assumption that these
agreements may be concluded without the advice
and consent of the Senate because they are author-
ized by the mutual security legislation, but I am
glad to have the question raised so that we may be
sure that we have resolved any doubts you may
have.

I should first like to point out that these agree-
ments are substantially similar in form and con-
tent to many others which have been negotiated
over the past few years in connection with the
mutual security program, and that they conform
in all essential respects to standard patterns with
which the Congress is familiar. In accordance
with procedures which were established in May
1953, these agreements, like all other international
agreements which have been negotiated since that
time, were carefully checked in advance by the
staff of Mr. Herman Phleger, the Legal Adviser

* For text see Bulletin of Apr. 5, 1954, p. 518.
' Reprinted from Corifi. Rec. of Mar. 29, p. 3698.

of this Department, to insure that it was proper
to conclude them without the advice and consent
of the Senate. Under these procedures, no nego-
tiations of executive agreements are undertaken
without prior authorization in writing by the
Secretary or the Under Secretary, and the agree-
ments to which you refer were so approved on the
basis of the clear statutory authorization contained
in the mutual security legislation.

The principal agreement, dealing with the mu-
tual defense assistance pi'ogram, is required and
authorized by section 402 of the Mutual Defense
Assistance Act of 1949, as amended, which pro-
vides that "The President shall, prior to the fur-
nishing of assistance to any eligible nation, con-
clude agreements with such nation," and prescribes
certain of the terms which must be included in a
mutual defense assistance agreement.

The mutual defense assistance agreements con-
cluded pursuant to this section do not in them-
selves determine the nature and the level of the
military assistance to be given the foreign coun-
try, but merely set forth certain terms and condi-
tions on which any such assistance will be pro-
vided. Article I of the agreement with Japan
states that "Each Govermnent * * * will make
available to the other * * * such equipment, ma-
terials, services, or other assistance as the Govern-
ment furnishing such assistance may authorize"
and provides that any assistance furnished by the
United States will be furnished under the terms,
conditions, and termination provisions of the au-
thorizing legislation and appropriation acts deal-
ing with the mutual security program. Since it
is necessary each year to secure from Congress
authority and funds to conduct the mutual secu-
rity program for the following year, Congress will
have the opportunity to review, on an annual basis,
the military assistance which is planned for Japan.
Thus, in presenting the mutual security program
to Congress last year, it was indicated that we
intended to give military assistance to Japan un-
der that program upon the conclusion of the re-
quired agreement, and this j'ear's presentation will
give Congress an opportunity to consider again
the plans for military assistance to Japan. These
plans are directed exclusively toward increasing
the capability of Japan to defend itself against
internal subversion and external attack, with a

"Tbe vote on Mar. 29 was 8-2 (U.S.S.R., Lebanon),
with China abstaining; it was the U.S.S.R.'s 58th veto.

570

Department of State Bulletin

view toward enhancing the security of the Pacific
area and thereby making it possible for us gi-adu-
ally to withdraw our forces from Japanese
territory.

The additional agreements which were signed
with Japan at the time of the signing of the Mu-
tual Defense Assistance Agreement are also au-
thorized by the mutual security legislation. The
purchase agreement and the agreement on eco-
nomic arrangements were concluded pursuant to
section 550 of the Mutual Security Act of 1951, as
amended/ and provide respectively for the sale
to Japan of American surplus agricultural com-
modities and for the use of the sales proceeds as
authorized by section 550. The agreement regard-
ing guaranty of investments is being concluded
pursuant to section 111 (b) (3) of the Economic
Cooperation Act of 1948, as amended, and section
520 of the Mutual Security Act.

If you would like any aclditional information on
the agreements signed with Japan on March 8,
I would of course be delighted to go into the sub-
ject in greater detail.
Sincerely yours,

Thruston B. Morton,

Assistant Secrcfar;/
(For the Secretary of State) .

Sale of Merchant Vessels
to Philippine Interests

Statevfient hy James D. Bell

Officer in Charge, Philifpine Affairs *

Because the Philippine Republic consists of
7,000 islands, some .300 of which are inhabited,
interisland shipping is essential to the very exist-
ence of the country. For all practical purposes
all Philippine exports and imports flow through
only three Philippine cities.

More than four-fifths of Philippine exports
must be brought to these three centers by vessels
in the interisland trade. During the war prac-
tically all vessels in this trade were destroyed.
The maintenance of a fleet of interisland vessels
is essential to a viable economy in the Philippines
and is important to the economy of the United
States by serving the areas that produce sugar,
copra, hemp, lumber, chrome, and manganese.

Since the liberation of the Fliilippines the eight
vessels which the Congress would authorize for
sale to Philippine interests by S. J. Resolution 72
have played a major role in maintaining the vital
arteries of commerce in the Philijipines. They
contribute about one-half of the Philippine inter-
island fleet. Their withdrawal would place a

' For text of sec. 550, see Buli-etin of Nov. 9, 10.53, p. C.'iO.
' Made before the House of Representatives Committee
on Merchant Marine on Mar. 30 (pre.ss release 168).

serious obstacle in the continuance of the normal
economy and trade of the Philippines.

It is the Department of State s understanding
that these vessels are of types for which there has
been little or no demand by U.S. shipowners. If
these vessels cannot be sold or the charters con-
tinued, considerable expense would be incurred
to return them to the United States where they
would probably have to be put in the "laid up"
fleet. It is the belief of the Department of State
that the approval of legislation permitting the
sale of these vessels for use in Philippine inter-
island trade would be of benefit financially to the
U.S. Government and of very considerable
assistance in maintaining the economy of the
Philippines.

As the Committee is aware, the Philippine Em-
bassy in "Washington expressed its views in a
note dated May 8, 1953, a copy of which was fur-
nished to the Committee on July 8, 1953.

The Department of State strongly supports the
enactment of S. J. Resolution 72.

Current Legislation on Foreign Policy:
83d Congress, 2d Session

Requesting American Churches and Synagogues to Give
Special Prayers on April IS (Easter and the Passover)
for Deliverance of Those Behind the Iron Curtain.
Report to accompany S. Con. Res. 63. H. Rept. 1318,
March 5, 1054, 2 pp.

Amending the Refugee Relief Act. Report to accompany
H. R. 8193. H. Rept. 1323, March 8, 1954, 20 pp.

Report to Congress on the Mutual Security Program for
the Six Months Ended December 31, 1953. Transmitted
March 8, 1954, H. Doe. 337, V 65 pp.

Security and Personnel Practices and I'roccdures of the
Department of State. Tenth Intermediate Report of
the Committee on Government Operations. H. Rept.
1334, March 9, 1954, 32 pp.

Temporary Extension of the Rights of Priority of Na-
tionals of Japan and Certain Nationals of Germany
with Respect to Applications for Patents. Report to
accompany H. R. 6280. H. Rept. 1326, March 9, 1954,
4 pp.

Department of Labor: Mexican Farm Labor Program.
Report to accompany H. J. Res. 401. S. Rept. 1063,
March 12 (legislative day, March 1), 19.54, 2 pp.

Yea-and-Nay Votes on Treaties. Report to accompany
S. Res. 207. S. Rept. 1083, March 17 (legislative day,
March 1), 1954, 3 pp.

Extending the Period for Filing Certain Claims under the
War Chiims Act ol' 194S. Report to accompany H. R.
6S9(!, 11. Kept. 1361, March 17, 1954, 6 pp.

Wool Program. Hearing before the Senate Committee
on Agriculture and Forestry on S. 2911, a Bill to Pro-
vide for the Development of a Sound and Prolitable
Domestic Wool Industi-y under Our National Policy
of Expatuling World Trade, to Encourage Increased
Domestic Production of Wool for Our National Security,
and for Other Purposes. February 19, 1954, 7'.> pp.

Alaska Statehood. Hearings before the Senate Commit-
tee on Interior and Insular .\EEairs on S. 50, a Hill to
Provide for the Admission of .Maska into the Union.
January 20, 21, 22, 25, 27, 28, 29, February 1, 2, 3, 4,
and 24, 1954, 364 pp.

April 12, ?954

571

Providing for the Admission of Alaslca into the Union.
Report to accompany S. 50. S. Rept. 1028, February
24 (legislative day, February 8), 1954, 45 pp.

Amending House Resolution 346 so as to Provide for an
Investigation and Study of the Subversion and De-
struction of Free Institutions and Human Liberties
in Certain Areas Controlled, Directly or Indirectly,
by World Communism, Including the Treatment of the
Peoples in Such Areas. Report to accompany H. Res.
438. H. Rept. 1255, February 25, 1954, 1 p.

Report of the Special Study Mission on International
Organizations and Movements of the House Committee
on Foreign Affairs Pursuant to H. Res. 113, a Resolu-
tion Authorizing the Committee on Foreign Affairs
to Conduct Thorough Studies and Investigations of All
Matters Coming within the Jurisdiction of Such Com-
mittee. H. Rept. 1251, Feb. 25, 1954, XV, 240 pp.

The Arab Refugees and Other Problems in the Near East.
Report of the Special Study Mission to the Near East
of the House Committee on Foreign Affairs Pursuant
to H. Res. 113, a Resolution Authorizing the Committee
on Foreign Affairs to Conduct Thorough Studies and
Investigations of All Matters Coming Within the Juris-
diction of Such Committee. H. Rept. 1250, February
25, 19.54, VII, 23 pp.

State, Justice, and Commerce Appropriation Bill, Fiscal
Year 1955. Report to accompany H. R. 8067. H. Rept.
1242, February 25, 1954, 31 pp.

Joint Economic Report. Report of the Joint Committee
on the Economic Report on the January 19.54 Economic
Report of the President with Supplemental Views and
the Economic Outlook and Other Materials Prepared
by the Committee Staff. H. Rept. 1256, February 26,
1954, 111 pp.

Mexican Farm Labor Program, 1954. Hearings before
Subcommittees of the House Committee on Appropria-
tions. March 4, 1954, 16 pp.

Facilitating the Entry of Philippine Traders. Report to
accompany H. R. 8092. H. Rept. 1306, March 4, 1954,
3 pp.

Price Support for Wool and Mohair. Report to accom-
pany S. 2911. S. Rept. 1044, March 4 (legislative day,
March 1), 19.54, 4 pp.

Department of Labor : Mexican Farm Labor Program.
Report to accompany H. J. Res. 461. H. Rept. 1317,
March 5, 1954, 2 pp.

THE DEPARTMENT

Significance of Department's
Exchange Program

Press release 160 dated March 24

The significance of the Department of State's
International Educational Exchange Program as
an "indispensable instrument of American under-
standing and good will" was emphasized March 24
by the Chairman of the U.S. Advisory Commis-
sion on Educational Exchange, J. L. Morrill, pres-
ident of the University of Minnesota, in the Ad-
visory Commission's Eleventh Semiannual Report
to the Congress.'

' H. Doc. 355, 83d Cong., 2d sess., transmitted Mar. 24.

Based on visits to Usis installations in seven
countries in Europe last summer, Chairman Mor-
rill returned firmly convinced of the immediate
and long-range values of educational exchange.
He reported :

I have returned with the clear-cut conviction that the
values of educational exchange are demonstrable ; that
the program is indispensable as an instrument of Ameri-
can understanding and good will — more valuable, indeed,
for the long-range realization of our oijjectives than any
other aspect of our non-military efforts overseas.

It has l)een said that it is far easier to import a culture
than to export it. This observation illustrates the differ-
ence between exchange and propaganda. Invariably, I
found that those people in other countries who had par-
ticipated in exchange programs and who spoke from
their own experience among us, their own knowledge of
us, were the strongest emissaries of American under-
standing abroad. They spread among their fellow-citizens
the contagion of friendly cooperation.

. . . Leadership of most European nations is largely
in the hands of what might be deserilied as an "intellectual
elite" — men and women of consideral>le educational and
professional attainment. The intercultural program of
our Embassies abroad, immensely strengthonoil by ex-
change relationships, becomes therefore highly significant.

As a result of this on-the-spot survey, Chairman
Morrill recommended strongly to the Department
of State that a thorough study be made of the
organizational set-up of the exchange of persons
operations overseas within the U.S. Information
Agency with a view to making it more effective
and insuring a "responsible autonomous identity"
of the program as distinguished from the informa-
tion program.

Under the terms of the President's Eeorganiza-
tional Plan Number 8, effective August 1, 1953,
the activities of the International Information
Administration of the Department of State were
transferred to the U.S. Information Agency, with
the exception of the International Educational
Exchange Service, which remained in the Depart-
ment. However, by interagency agreement, the
overseas operation of the Exchange Service is
administered by personnel of the Information
Agency.

Commenting on the future effects which might
result from the "present hybrid pattern of joint
State Department and Usia accountability,"
Chairman Morrill advised the Department to
maintain watchful vigilance:

It must be recognized that our governmental informa-
tion activities are skeptically regarded and suspect among
the more sophisticated constituencies of the European na-
tions with cultural traditions older than our own. It is
from these constituencies that leadership emerges — and
these are likewise the constituencies principally affected
by, and concerned with, our exchange and cultural efforts
abroad.

Quite candidly it is my tentative conclusion, based
upon observation of our Embassy operations, that the
retransfer of the cultural officers and cultural attaches
from the United States Information Agency to the De-
partment of State, thus reunifying cultural and exchange
activities and responsibilities, would be eminently sound
and desirable — and that this suggestion merits the con-
sideration of the President, the Secretary of State, and
the Congress.

572

Department of State Bulletin

THE FOREIGN SERVICE

Foreign Service Personnel
in U.S. Information Agency

White House press release dated March 27

The President has signed an Executive order
authorizing the Director of the United States In-
formation Agency to carry out all functions of
the Board of the Foreign Service relating to For-
eign Service personnel appointed or assigned for
service in that Agency.

This order constitutes one more step in the es-
tablishment of the U.S. Information Agency as
an independent operating unit of the Government.

As a practical matter, the order will have the
effect only of transferring to the U.S. Informa-
tion Agency authority to hear charges brought
against foreign service persomiel within its juris-
diction. This authority has heretofore been vested
in the Board of the Foreign Service, a statutory
board set up under the provisions of the Foreign
Service Act of 1946.

TEXT OF EXECUTIVE ORDER 10522'

AUTHORIZING THE DIRECTOR OF THE UNITED
STATES INFORMATION AGENCY TO CARRY OUT
CERTAIN FUNCTIONS OF THE BOARD OF THE
FOREIGN SERVICE

By virtue of the authority vested in me by Chapter III
of the Supplemental Appropriation Act of 1054 (I'ublic
Law 207, SM Congress ; 67 Stat. 419), and as President of
the United States, it is ordered as follows :

Section 1. The Director of the United States Informa-
tion Agency is hereby authorized to carry out the func-
tions of the Board of tlie Foreign Service, provided for by
the Foreign Service Act of 194G (60 Stat. 999; 22 U. S. C.
801 et seq.), with respect to personnel appointed or as-
signed for service in the United States Information Agency
under the provisions of such Act, as amended : Provided,
that nothing herein contained shall be construed as trans-
ferring to the said Director any function of the said Board
relating to any Foreign Service Othcer.

Section 2. Tlie Director of the United States Informa-
tion Agency is hereby authorized to prescribe such regula-
tions and issue such orders and instructions, not incon-
sistent with law, as may be necessary or desirable for
carrying out his functions under section 1 of this order.

The White House,

March 26, 1954.

" 19 Fed. Reg. 1689.

Current U.N. Documents:
A Selected Bibliography'

Economic and Social Council

The Problem of Statelessness. Information transmitted
by States in pursuance of Economic and Social Coun-
cil resolution 352 (XII) relating to the problem of
statelessness : Austria. E/2164/Add.24, January 7,
1954. 6 pp. mimeo.

Forced Labour: Reports of the Ad Hoc Committee on
Forced Labour. Communication dated 3 December
1953, from the Director-General of the International
Labour Office. E/2431/Add.3, January 26, 1954. 3
pp. mimeo.

Freedom of Information. Report of the Rapporteur on
Freedom of Information. Summary of comments and
suggestions received by the Rapporteur on Freedom
of Information from information enterprises and na-
tional and international professional associations.
E/2439/Add.l, February 1, 1954. 3 pp. mimeo.

Transport and Communications. Situation with Respect
to Ratification of the Convention on the Inter-Govern-
mental Maritime Consultative Organization. Report
by the Secretary-General on developments since the
adoption of Council resolution 468 (XV). E/2520,
January 21, 1954. 7 pp. mimeo.

Transport and Communications. Pollution of Sea Water.
Report by the Secretary-General on developments since
the adoption of Council resolution 468 B (XV).
E/2522, January 22, 1954. 5 pp. mimeo.

Transport and Communications. Protocol on a Uniform
system of Road Signs and Signals. Note by the Secre-
tary-General. E/2523, December 30, 1953. 16 pp.
mimeo.

Educational Conditions in the Non-Self-Governing Terri-
tories. Note by the Secretary-General. E/2532, Janu-
ary 11, 1954. 2 pp. mimeo.

Statelessness. The Problem of Statelessness: Action
Taken by the International Law Commission. Memo-
randum by the Secretary-General. E/2533, January 14,
19.54. 2 pp. mimeo.

Freedom of Information. Encouragement and Develop-
ment of Independent Domestic Information Enter-
prises. Report by the Secretary-General. E/2534,
January 14, 1954. 27 pp. mimeo.

Narcotic Drugs. Report by the Secretary-General on the
United Nations Opium Conference 1953. E/2463/Add.3,
February 17, 1954. 1 p. mimeo.

Slavery. Consultations Concerning the Desirability of
a Supplementary Convention on Slaverv and its pos-
sible Contents. E/2.540, February 11, 1954. 22 pp.
mimeo.

Freedom of Information. Production and Distribution
of Newsprint and Printing Paper. Report by the Sec-
retary-General. E/254.S, February 12, 19,54. 6 pp.
mimeo.

Conservation and Utilization of Non-Agricultural Re-
sources. Action taken under Council re.iolution 345
(XII). Report by the Secretary-General. E/2545,
February 16, 1954. 3 pp. mimeo.

Economic Development of Under-Developed Countries.
International Flow of Private Catiital for the Economic
Development of Under-Developed Countries. Memo-
randum by the Secretary-General on Action Taken To
Stinuilate the International Flow of Private C.'ipital
E/2546. February 19, 1954. 79 pp. mimeo.

' Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New York 27, N. Y. Other
materials (mimeographed or processed documents) may
1)0 consulted at certain designated libraries in the United
States.

April 72, 1954

573

Unicef Aid to Programmes for the Care and Rehabilita-
tion of Handicapped Children. E/ICEF/250, February
23, 1954. 33 pp. mimeo.

Consultative Activities Undertaken by Non-Govern-
mental Organizations Granted Category B Consulta-
tive Status at or Before the Thirteenth Session of the
Council. E/C.2/374, December 9, 1953. 270 pp. mimeo.

International Standard Classification of Occupations.
E/CN.3/167, December 22, 1953. 3 pp. mimeo.

Statistics of Enterprises (Memorandum prepared by the
Secretary-General). E/CN.3/169, January 6, 1954. 16
pp. mimeo.

External Trade: Transaction Value (Memorandum pre-
pared by the Secretary-General). E/CN.3/172, Jan-
uary 6, 1954. 13 pp. mimeo.

The Customs Areas of the World (Memorandum prepared
by the Secretary-General). E/CN.3/174, January 18,
1954. 14 pp. mimeo.

Population Census Activities (Memorandum prepared by
the Secretary -General). E/CN.3/185, February 9, 1954.
6 pp. mimeo.

Housing Statistics (Memorandum prepared by the Sec-
retar.v-General). E/CN.3/187, February 9, 1954. 17 pp.
mimeo.

Draft International Covenants on Human Rights and
Measures of Implementation. Memorandum by the
Secretary-General. E/CN.4/696, January 13, 1954. 6
pp. mimeo.

Draft International Covenants on Human Rights and
Measures of Implementation. Ob.servations of non-
governmental organizations received by the Secretary-
General in pursuance of resolution .501 B (XVI) of
the Economic and Social Council. E/CN.4/702, Febru-
ary 2, 1954. 52 pp. mimeo.

List of Communications Dealing with the Principles in-
volved In the Promotion of Universal Respect for and
Observance of Human Rights, Received by the United
Nations from 1 April 1953 to 31 December 19.53, Pre-
pared by the Secretary-General in Accordance with
Resolution 75 (V) of the Economic and Social Council
as Amended by Resolution 275 (X). E/CN.4/CR.23,
January 21, 19.54. 12 pp. mimeo.

Freedom of Information. Report of the Rapporteur on
Freedom of Information. Communication dated 19
January 19.54 from the Deputy Permanent Representa-
tive of the Union of South Africa to the Secretary-
General. E/2,535, February 1, 19.54. 4 pp. mimeo.

Draft International Covenants on Human Rights and
Measures of Implementation. Observations of non-gov-
ernmental organizations received by the Secretary-
General in pursuance of resolution 501 B (XVI) of the
Economic and Social Council. E/CN.4/702/Add.l,
February 15, 1954. 14 pp. mimeo.

Report of the Sixth Session of the Sub-Commission on
Prevention of Discrimination and Protection of Minori-
ties to the Commission on Human Rights. New York,
4 to 29 January 19.54. E/CN.4/703. E/CN.4/Sub.2/157
February 5, 1954. 103 pp. mimeo.

Women in Public Services and Functions. Supplemen-
tary report of the Secretary-General. E/CN.6/158/
Add.5, January 5, 19.54. 3 pp. mimeo.

Status of Women in Family Law. Report of the Sec-
retary-General based on replies from Governments to
Part III of the Questionnaire on the Legal Status and
Treatment of Women. E/CN.6/185/Add.3/Rev.l, Feb-
ruary 26, 1954. 10 pp. mimeo.

Status of Women in Family Law (Report of the Secretary-
General based on the replies from the Government of
Australia to Part III of the Questionnaire on the Leg.al
Status and Treatment of Women). E/CN.6/185/
Add. 12, February 25, 1954. 38 pp. mimeo.

Status of Women in Family Law. Report of the Secre-
tary-General based on the reply from the Government
of Iran to Part III of the Questionnaire on the Legal
Status and Treatment of Women. E/CN.6/185/ Add.13,
February 4, 1954. 15 pp. mimeo.

Information Concerning the Status of Women in Non-Self-
Governing Territories (Report by the Secretary-Gen-
eral). E/CN.6/237, January 15, 1954. 24 pp. mimeo.

Part-Time Employment. Report prepared by the Inter-
national Labour Office. E/CN.6/238, January 15, 1954.
7 pp. mimeo.

Fellowships and Other Assistance Available to Govern-
ments for the Training of Persons Interested in Im-
proving the Status of Women. Memorandum by the
Secretary-General. E/CN.6/242, February 1, 1954. 17
pp. mimeo.

Comments on Governments on the Text of the Draft Con-
vention on Nationality of Married Persons. E/CN.6/
243, February 11, 1954. 19 pp. mimeo.

Suggestions on Ways in Which Equal Political Rights for
Women Can Be Achieved and Made Effective (Memo-
randum by the Secretary-General). E/CN.6/244, Feb-
ruary 3, 1954. 11 pp. mimeo.

Part-Time Work for Women : A Selected Bibliography.
E/CN.6/245. February 3, 1954. 7 pp. mimeo.

Participation of Women in the Work of the United Nations
and the Sijecialized Agencies (Memorandum by the
Secretary-General). E/CN.6/246, February 18, 1954.
26 pp. mimeo.

Economic OpiKirtunities for Women : Older Women
Workers. Report by the Secretary-General. E/CN.6/
251, February 9, 1954. 58 pp. mimeo.

Nationality of Married Women. Statutory and consti-
tutional provisions relating to the nationality of married
women. Memorandum by the Secretary-General.
E/CN.(!/206/A(ld.3, January 15, 1954. 14 pp. mimeo.

Report of the Inland Transport Committee (Third Ses-
sion) to the Economic Commission for Asia and the Far
East (Tenth Session). B/CN.11/277 (B/CN.ll/
TRANS/100), January 27, 1954. 27 pp. mimeo.

Economic Commission for Asia and the Par East. Im-
plementation of Commission Recommendations. Re-
port by the Executive Secretary. E/CN.11/382, De-
cember 23, 19.53. 49 pp. mimeo.

Report of the Committee on Industry and Trade (Sixth
Session) to the Economic Commission for Asia and the
Far East (Tenth Session). E/CN.11/383 (E/CN.ll/
I&T/IOO), February 4, 1954. 47 pp. mimeo.

UNESCO Activities in 1953 of Interest to the Economic Com-
mission for Asia and the Far East. E/CN.11/384,
January 27, 1954. 23 pp. mimeo.

Economic Commission for Latin America. Progress Report
bv the Executive Secretary (Covering period 25 April to
31 December 1953). E/CN.12/AC.24/2, December 31,
19.53. 26 pp. mimeo.

Technical Assistance Activities in the Ecla Region
E/CN.12/AC.24/4, December 15, 1953. 11 pp. mimeo.

Economic Commission for Latin America. Committee on
Economic Co-Operation in Central America. Annual
Report (28 August 1952-16 October 1953). B/CN.12/
AC.24/.5, E/CN.12/CCE.1. 41 pp. mimeo.

Relations of the Economic Commission for Latin America
with the Inter-American Economic and Social Council.
Memorandum by the United Nations Legal Department
dated 15 October 19-53. E/CN.12/AC.24/6.Add.l, Janu-
ary 26, 1954. 8 pp. mimeo.

Economic Commission for Europe. Reports from the Com-
mittees of the Commission on their Activities and an
Additional Note by the Executive Secretary. E/ECE/
177, January 20, 1954. 57 pp. mimeo.

Economic Commission for Europe. Note by the Executive
Secretary on Other Activities of the Commission and its
Secretariat. E/ECE/178, January 20, 1954. 8 pp.
mimeo.

Economic Commission for Europe. The Commission's
Programme of Work for 1954/1955. E/ECE/182, Janu-
ary 20, 1954. 33 pp. mimeo.

The European Steel Market in 1953. E/ECE /183, E/ECE/
STEEL/79, January 19, 1954. 100 pp. mimeo.

574

Department of State Bulletin

AprU 12, 1954 Index

Afghanistan. Wheat To Be Provided for Afghanistan Aid . 566
American Principles

Considerations Underlying U.S.-China Policy (Martin) . 543
Objectives of U.S. Policy in Europe (Elbrick) .... 555

Asia. The Threat of a Red Asia (Dulles) 539

Atomic Energy. Hydrogen Bomb Tests in the Pacific

(Strauss) 548

China. Considerations Underlying U.S. -China Policy

(Martin) 543

Claims and Property. Unsettled or Unpaid Claims Against

Cuba 564

Congress. The. Current Legislation on Foreign Policy . . 571
Cnba. Unsettled or Unpaid Claims Against Cuba . . . 564
CzechosIoval(ia. Aircraft Incident on Czechoslovak-Ger-
man Border (text of note) 563

Economic Affairs

East-West Trade Talks With U.K. and France (Stassen) . 563
Quota on Rye Imports (text of proclamation) .... 565
Sale of Merchant Vessels to Philippine Interests (Bell) . 571
U.S. -Philippine Consultations on Trade Relations (text of

announcement) 566

Educational Exchange. Significance of Department's Ex-

chanse Program 572

Egypt. Israeli Complaint Against Egypt Regarding Ship-
ping Restrictions (Lodge) 569

Europe. Objectives of U.S. Policy in Europe (Elbrick) . 555
France. East-West Trade Talks With U.K. and France

(Stassen) 563

Germany. German Ratification of Edc and Conventions

(Eisenhower, Dulles) 554

Indochina. Trilnite to Commander and Men of Dien-Bien-

Phu Garrison (Eisenhower) 542

International Information

Foreign Service Personnel in U.S. Information Agency

(Eisenhower) 573

Significance of Department's Exchange Program . . . 572
International Organizations and Meetings. East-West

Trade Talks With U.K. and France (Stassen) . . . 563
Israel

Israel-Arab Relations (White) 554

Israeli Complaint Against Egypt Regarding Shipping Re-
strictions (Lodge) 569

Japan

Legal Basis for Agreements With Japan 570

U.S. -Japanese Friendship (Robertson) 547

Jordan. Israel-Arab Relations (White) 554

Labor. U.S. -Mexican Migratory Labor Commission Mem-
bership 565

Mexico. U.S.-Mexican Migratory Labor Commission Mem-
bership 565

Military Affairs

Convictions for Illegal Export of War Materials . . . 567

Return of Lend-Lease Vessels 563

Tribute to Commander and Men of Dien-Bien-Phu Garrison

(Eisenhower) 542

Mutual Security

Department Views on Soviet Security Proposals .... 562

Economic Cooperation Between the U.S. Government and

the Countries of the Near East (Dorsey) .... 550

Vol. XXX, No. 772

German Ratification of Edc and Conventions (Eisenhower,

Dulles) 554

Negotiations for U.S. Loan to Coal and Steel Community . 562

Wheat To Be Provided for Afghanistan Aid 666

Near East. Economic Cooperation Between the U.S.
Government and the Countries of the Near East

(Dorsey) 550

North Atlantic Treaty Organization

Fifth Anniversary of NATO (Eisenhower, Dulles) . . . 561

Objectives of U.S. Policy in Europe (Elbrick) .... 555

Philippines

Sale of Merchant Vessels to Philippine Interests (Bell) . 571

U.S.-Philippine Consultations on Trade Relations (text of

announcement) 566

Presidential Documents

Foreign Service Personnel in U.S. Information Agency

(executive order) 573

Pan American Day, 3954 (proclamation) 564

Quota on Rye Imports (proclamation) 565

Tribute to Commander and Men of Dien-Blen-Phu Gar-
rison (message) 542

Protection of Nationals and Property. Aircraft Incident on

Czechoslovak-German Border (text of notes) . . . 563
Publications. Current Legislation on Foreign Policy . . 571
State, Department of. Significance of Department's Ex-
change Program 572

Treaty Information

Current .Actions 567

German Ratification of Edc and Conventions (Eisenhower,

Dulles) 554

Legal Basis for Agreements With Japan 570

U.S.S.R.

Department Views on Soviet Security Proposals . , . 562

Return of Lend-Lea.se Vessels 563

United Kingdom. East-West Trade Talks With U.K. and

France (Stassen) 563

United Nations

Current U.N. Documents 573

Israeli Complaint Against Egypt Regarding Shipping Re-
strictions (Lodge) 5691

Morehead Patterson Appointed Chairman of U.N, Day

Committee 567

Name Index

Bell, James D 571

Dorsey, Stephen P ', 550

Dulles, Secretary 539, 554, 561, 567

Eisenhower, President 542, 554, 561, 564, 565, 573

Elbrick, C. Burke 555

Lodge, Henry Cabot, Jr 569

Martin. Edwin W 543

Monnet, Jean 562

Morrill, J. L. . ] 572

Morton, Thruston B ! ! ! 570

Patterson, Morehead ] '_ 507

Robertson, Walter S 547

Stassen, Harold E \ 553

Strauss. Lewis L 54g

Thurston, Walter ] [ 565

White, Lincoln \ \ 554

Check List of Department of State
Press Releases: March 29-April 4

Releases may be obtained from the News Division,
Department of State, Washington 2.5, D. C.

Press releases issued prior to March 29 which
appear in this issue of the Bulletin are Nos. 151
of March 22, 152 and 156 of March 23, 157 and 160
of March 24, 161 of March 25, and 163 and 164 of
March 26.
No. Date Subject

165 3/29 Dulles : Far Eastern problems

166 3/30 Dulles : Message to Adenauer

167 3AS0 Robertson : Japanese stone lantern

168 S/.SO Bell : Sale of merchant vessels

169 3/31 Statement im Soviet note
tl70 4/1 Maney : American immigration
*171 4/1 Medical aid tor Berlin child
*172 4/1 Lawson nomination

173 4/1 Coal and Steel Community loan nego-
tiations.
tl74 4/2 Foreign Relations volume

175 4/3 Labor Commission membership
tl76 4/3 .lernegan : America and the New India

177 4/3 Dulles : NATO fifth anniversary

*Not printed.

tHeld for a later issue of the Bulletin.

the

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1936, Volume I, General, The British Commonwealth

Of outstanding historical interest in this volume are
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Aside from problems of armament and threats to
peace, the multilateral subjects treated in this volume
include negotiations for the suppression of liquor
smuggling into the United States and on a number of
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monwealth deals entirely with commercial matters,
especially with the efforts of Secretary of State Hull to
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Vol. XXX, No. 773
April 19, 1954

■^tbs

RECOMMENDATIONS CONCERNING U.S. FOREIGN

ECONOMIC POLICY Message of the President to the
Congress ••••. 602

"NOT ONE OF US ALONE"— A MUTUAL SECURITY

PROGRAM FOR 1955 • Statement by Secretary Dulles . 579

REVIEW OF ANNUAL ECE ECONOMIC SURVEY •

by Winthrop G. Brown 608

THE IMPORTANCE OF INDOCHINA • by Under

Secretary Smith ...................... 589

STRENGTHENING OF ANGLO-AMERICAN TIES •

by Ambassador Winthrop W. Aldrich 591

AMERICA AND THE NEW INDIA • by John D.Jernegan . 593
NEW TRENDS IN AMERICAN IMMIGRATION •

by Edward S. Maney 599

BERLIN REBUILDS • Article by Margaret Rupli Woodward . 584

For index see inside back cover

I)ORton Public Library
Superintendent of Documents

MAY 2 4 1954

bulletin

Vol. XXX, No. 773 • Publication 5434
April 19, 1954

For sale by the Superintendent of Documents

U.S. Govemmenl Printing OtRce

Washington 25, D.C.

Pbice:

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The printing ot this publication haa
been approved by the Director of the
Bureau ot the Budget (January 22, 1952).

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

The Department of Slate BULLETIN,
a meekly publication issued by the
Public Services Division, provides the
public and interested agencies of the
Government tvith 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
well as special articles on various
pfuises 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.

<<Not One of Us Alone"

A MUTUAL SECURITY PROGRAM FOR 1955

Statement hy Secretary Dulles ^

I welcome this opportunity to testify in sup-
port of tlie mutual security program for fiscal
year 1955. I shall deal with the relation of that
program to our overall foreign policies. Other
aspects will be dealt with by other witnesses. This
program is designed to promote the security and
welfare of the United States. It takes account of
four basic facts :

1. The Soviet and Chinese Communist rulers
continue to build a vast military establishment
to serve their goal of world domination.

2. The United States cannot gain security in
isolation, but only through a system of collective
security.

3. Certain free-world countries cannot, without
our help, maintain the military posture required
in the common interest, including the interest of
the United States.

4. The threat we face is neither a short-term
threat nor is it exclusively a military threat.
Tlierefore, we should strive to hold free- world se-
curity commitments to levels which are compatible
with the economic and social health of ourselves
and our allies.

These basic principles derive from the past and
are applicable to the future. Of course, changing
contlitions cull for changing applications. I shall,
in this presentation, primarily deal with those
features of ne.xt year's program which reflect
change.

Deterrent Strategy

During the past year our strategy has been de-
veloped with a view to placing greater emphasis
upon deterrent power. It is not practical to meet
in kind the vast landpower of the Soviet bloc
which, from its central Eurasian land mass, could

' Made before tlie Foreit-'ii Affairs Committee of the
House of Representatives on Apr. .'J (press release ITS) ;
also available as Department of State publication 5483.

strike out in any one of many directions against
any one of more than 20 free nations. To attempt
to match that kind of power at every vital point
where it might attack would mean bankruptcy
and the exposure of many countries to capture
from within by Communist infiltrations. Thus,
while the need of localized land strength is by no
means ignored, there has been an intensified search
for effective and less costly ways to deter attack.

We have felt that potential aggi-essors would
hesitate to attack if they felt that they would be
made to sutler more for their aggression than they
could gain by their aggression. That realization
can be created if the free world has diversity and
flexibility of retaliatory power. We must not feel
bound always to give the aggressors the choice of
place and means. We must have a choice of our
own. That choice would follow a judgment as to
what would hurt the aggressor beyond his possi-
bility of gain and, at tlie same time, not enlarge
the conflict to our disadvantage.

The free nations can gain tliat power to choose,
and consequently to deter, if they create a wide-
spread community system in which defensive
strength is reinforced by mobile power which has
many points on which it can be based. Tliis is
not only effective but relatively economical, for
then the power that protects one can quickly be
made available to protect many.

NATO

The North Atlantic Treaty Organization, which
yesterday celebrated its fifth birthday, provides
the facilities needed to implement deterrent poli-
cies. It does not neglect defensive strength. But
it powerfully sujiplements this by an extensive
system of bases and facilities, shared in common,
which extend from Canada through the North At-
lantic to Europe and into Asia.

Also the Nato Ministerial Council, which nor-
mally meets twice a year, assures indispensable
consultation on an authoritative basis.

AprW 19, 1954

579

This Nato system is looked on as an essential
element in United States policy.

For 1955, the amount of new authorizations and
appropriations required for our contribution to
Nato's defensive strength will, I am glad to say,
be much less than heretofore. This is due to the
fact that a revision in force goals under the new
strategy, the substantial progress that has already
been made in equipping and training Nato forces,
and greater efficiency has enabled us to meet our
past commitments at less cost than had been esti-
mated.

EDC

Any consideration of Nato is incomplete with-
out a consideration of the present status of the
European Defense Community. Nato needs a
German contribution and, above all, it neecls a
Franco-German unity which will end, for all time,
what has been the world's worst fire hazard. The
French proposed to gain these ends by uniting
six continental nations, including France and Ger-
many, to create a new community whose armed
forces, drawn from each member nation, would,
in Europe, replace national forces.

By next month it will be 2 years since the treaty
to create the Edc was signed. So far ratifications
have been completed by three of the parties,
namely Belgium, the Netherlands, and the West
German Republic. Ratification by a fourth coun-
try, Luxembourg, may occur very soon. In the
case of France and Italy, the parliamentary rati-
fication process has not yet begun, but early dates
for that may soon be set.

These delays constitute a negative factor from
the standpoint of the free world. They delay
the capacity of Nato to draw on Germans for
building the strength needed to implement Nato's
forward strategy. Also they prevent West Ger-
many from joining the family of sovereigii free
nations. This is because the treaties to restore
sovereignty to the West German Rqniblic are by
their terms contingent on Edc coming into force.
There is, of course, a duly elected West German
Government. But it is not yet a sovereign gov-
ernment.

It is obvious that the present status cannot con-
tinue much longer.

Spain

During the past year the Nato defense system
has been supplemented, so far as the United States
is concerned, by a base arrangement with Spain.
This will enlarge in an important way the facili-
ties available to the United States air and naval
craft in the Western Mediterranean area. This
has been desired for a long time. Now the nego-
tiations have been successfully concluded. This
represents an addition to our overall security. It
will, however, call for an item of appropriation.

580

Economic Assistance

Anotlier encouraging development during the
current year is the increase in the economic well-
being of our European allies. Generally speak-
ing, their living standards have risen, their cur-
rencies are stronger, and the people feel a greater
confidence in their future.

Their international position from the stand-
point of balance of payments has also improved,
and the balance is now moderately favorable to
them. This result has been assisted by our off-
shore procurement progi'am, which enables Europe
to earn dollars by manufacturing some of the mili-
tary supplies which we need. Also, we have
given dollars to France on account of her expend-
itures in Indocliina.

The creation of a more healthy economy in
Europe is due in considerable measure to the
adoption, this year, of the "long haul" concept
for Nato. Tlie prior program of rapid militai'y
buildup was demonstrably not within the eco-
nomic capabilities of the member countries. The
new program involves less quantity but more
quality.

By the use of methods of greater selectivity,
and b}' increased dependence upon new strategy,
it will be possible to maintain a steady increase
of defensive capability without military costs
which our European allies could not carry without
great economic help from the United States.

We do not believe that even tlie United States
can, prudently make vast economic grants a per-
manent pai't of its policies.

We have sought to eliminate economic aid in
Europe as pure budgetary support. Exceptions
are where this is necessary to maintain military
establishments which directly benefit us and which
cannot be maintained to the degree deemed desir-
able by our military advisers without some support
from the United States.

The case of Turkey illustrates this point. Tur-
key maintains about 20 divisions of splendid
fighting quality at a strategic location. The
Turkish economy cannot support this without
some assistance and, therefore, the mutual security
program makes provision for this. We believe
that the money spent in this way brings a greater
return to the United States in terms of its own
security than if it were spent in some other way
or if it were not spent at all.

There are, in the program, some items of eco-
nomic aid not related to direct military benefits.
This is particularly the case in relation to Asia
and Latin America. In most cases the amounts
are small. The largest single economic item, out-
side of Korea of which I shall speak later, is $85
million to be recommended for India. India's
foreign policy differs from our own. But free-
dom accepts diversity. The Government of India
is carrying on a notable experiment in free gov-
ernment. It provides a striking contrast with

Deparfment of State Bulletin

the neighboring experiment being conducted in
China by the Communist police state system. We
believe that it is important to tlie United States
that India's 5-year economic plan should succeed,
and that to continue to help in this is legitimately
in the enlightened self-interest of the United
States.

It can, however, be reported that, generally
speaking, measures of a self-reliant nature are
effectively replacing grant aid.

The Middle East

Another new element of encouragement is the
action of Turkey and Pakistan in concluding, last
week, a treaty of friendship and cooperation. It
is good that the concept of mutual security has
taken hold in tlie important Middle East. This is
an area of great human, economic, and strategic
value. It has been weakened by divisions. The
fact that Pakistan and our Nato ally, Turkey, now
plan to cooperate for security gives both of these
countries a new source of strength. Also, they
have set an example that others may follow.

The 1955 mutual security program will include
continuing authorization for military supplies to
Pakistan, designed to enable it to play its part in
regional defense. It may be noted that Pakistan
has given clear assurance that the military aid it
receives from the United States will be used only
for defensive purposes.

Latin America

Before discussing the Far East, I should like
to say a word about this hemisphere. I returned
only recently from the Tenth Inter- American Con-
ference at Caracas. That Conference made a ma-
jor declaration of foreign policy. It affirmed that,
if the international Communist movement came to
dominate or control the political institutions of
any American state, that would constitute a threat
to the sovereignty and political independence of all
the American states, endangering the peace of
America.^ The only vote against that declara-
tion came from Guatemala, for reasons that are
obvious.

This action taken by the Inter-American Con-
ference marks an important step forward in uni-
fying this hemisphere against the threat of inter-
national communism. However, other steps also
are needed. Living standards in most of Latin
America are low, and there are large and vocal ele-
ments who seek to place the blame on the United
States.

Our mutual security program will take into ac-
count the importance of economic growth and bet-
ter standards of living in Latin America. The
principal help our Nation can give will be througli
private enterprise. However, this can and should

be supplemented by certain governmental meas-
ures. Among these are the technical cooperation
programs. The mutual security program for 1955
will contain some continuing provision for this
type of assistance in Latin America and elsewhere.
It produces results far greater than can be meas-
ured by the dollars appropriated, for it spreads
knowledge that helps others to help themselves.

Korea

Now let me turn to the Far East. There the de-
velopments of the year have produced mixed re-
sults, some favorable and some unfavorable. In
Korea the fighting has been ended by an armistice
concluded last July. The killing there has
stopped. That result, honorably achieved, has,
we believe, afforded deep satisfaction to the Amer-
ican people.

The ending of the fighting has its impact on the
1955 mutual security program.

It is no longer necessary for the Department of
Defense to expend the billions which were in-
volved in conducting active fighting. In place
of this destructive and wasteful expenditure, there
is now a program for relief and rehabilitation of
the Eepublic of Korea. Tliis in part is being con-
ducted by the United Nations, but the main part
is a United States effort.

It is an immense task to restore domestic well-
being in war-ravaged Korea. However, the cost
represents only a small fraction of what would
be the cost of waging war. We believe that the
accomplishment of this peaceful task will be in
the interest of the United States and of the free
world if it shows, as we know it can, the capacity
of free men to excel in the arts of peace.

Japan

The Government of Japan is now planning to
assume a larger share of responsibility for its own
defense, which will contribute to the maintenance
of peace and security in the Far East. The Jap-
anese have been understandably reluctant to as-
sume the economic burden of recreating even a
modest security establishment. Al.so, they were
so shocked by the ghastly consequences of World
War II that they have tended to close their eyes
to the emergence of a new military threat. How-
ever, on March 8, 1954, a mutual security agree-
ment was signed between the United States and
Japan.^ It contemplates an expansion of the Jap-
anese defense forces with United States assistance
principally in terms of military end-items.
While this will create an item of cost for tlie United
States, it is a cost which will have compensating
benefits.

' For text, see Bulletin of Mar. 22, 1954, p. 420.
April ?9, 1954

* Ibid., Apr. .'i, l!)r)4, p. 520.

581

Indochina

The situation in Indochina continues to be
fraught with great danger, not only to the imme-
diate^area hut to the security of the United States
and its allies in the Pacific area. You will recall
that we have treaties of mutual security and de-
fense with Australia and New Zealand, and with
the Philippines, which recognize that the area is
one which is vital to the peace and safety of the
United States. .

Communist China has been intensifying Com-
munist aggression in French Indochina.

In application of the classic Communist pattern,
they have sought to capitalize on local aspirations
for'independence and used them as a pretext for a
major war of aggression. The rulers of Com-
munist China train and equip in China the troops
of their puppet Ho Chi Minh. They supply these
troops with large amounts of artillery and am-
munition. They supply military and technical
guidance in the staff section of Ho Chi Minh's
Command, at the division level and in specialized
units such as the signal and engineering corps,
artillery units, and transportation.

The lai-ge purpose is not only to take over Indo-
china but to dominate all of Southeast Asia. The
struggle tlius carries a grave threat not only to
Viet-Nam, Laos, and Cambodia, but also to such
friendly neighboring countries as Malaya, Thai-
land, Indonesia, the Philippines, Australia, and
New Zealand.

The United States Government has been alive to
the growing peril. Last September we agi-eed
with the French Government to help carry out the
Navarre Plan.^ This is a plan, designed by Gen-
eral Navarre, to break the organized body of Com-
munist aggression by the end of the 1955 fighting
season and thereby reduce the fighting to guerrilla
warfare which could, in 1956, be met for the most
part by national forces of the three Associated
States."

The basic elements of this plan were :

Full independence of Viet-Nam, Laos, and Cam-
bodia, within the French Union, so that their
peoples M'ould have a clear stake in the struggle ;

Building up the national forces of Viet-Nam,
Laos, and Cambodia ; and

Some initial addition of armed strength from
other parts of the French Union.

The United States, on its part, agreed to contrib-
ute most of the required military end-items and to
finance most of the monetary cost of the program,
particularly in relation to training, equipping, and
maintaining more local forces.

This arrangement involved a substantial in-
crease in the cost which had been assumed in re-
lation to the mutual security program which was
submitted in the spring of 1953. Even then a

large sum, $400 million, had been asked for and
was appropriated. It was found desirable to in-
crease this dollar amount to $785 million. Also
the volume of military end-items was largely in-
creased. This was done within the framework of
the present act by resort to the flexible transfer
provisions which were used with the approval of
congressional leaders.

Tills Indochina situation, and also the larger
use of funds in Iran in response to favorable po-
litical developments there, illustrate the vital im-
portance of transfer provisions which enable the
President to shift funds in accordance with chang-
ing needs which cannot always be foreseen a year
or more in advance.

We shall seek, for 1955, funds for Indochina on
a scale comparable to that which has been found
necessary for the current year.

This item is of great importance as indeed ap-
pears from the illuminating report = of your sub-
committee, of which Congressman Judd was
chairman.

There is no reason to question the inherent
soundness of the Navarre Plan. The French
Government, by its declaration of July 3, 1953,
assured complete independence to Viet-Nam, Laos,
and Cambodia, and that is being translated into
reality. The national forces of these three States
are being trained and equipped in increasing num-
bers. The French have, as promised, built up
their own forces in Indochina. The French and
national forces have shown superb fighting quali-
ties in the epic battle of Dien-Bien-Phu. Nothing
has happened to change the basic estimate of rela-
tive military power for 1955. On the contrary,
the Communists are now expending recklessly
their military assets in Indochina.

It seems obvious that they are gambling on a
supreme effort to break the fighting spirit of the
French and Associated States before the present
fighting season ends in May and the Geneva con-
ference gets under way.

That scheme must be frustrated. The way is to
prove that when the Communists use their man-
power in massive suicidal assaults designed to
break a single will, the result is the rallying of
many wills that, together, are unbreakable. The
need of the hour is solidarity on the part of the
free world, and notably on the part of all those
nations which have a direct and vital stake in the
freedom of the area. The Governments of France
and of the Associated States ought not to feel that
they stand apart in an hour of supreme trial.

That is the judgment of this administration,
and I feel confident that that view is shared by
the Congress. I hope that it will be shared by
the other nations concerned. In that way a lesson
can be taught that will protect us all.

" Ibid., Oct. 12, 1953, p. 4S6.
582

'Special Study Mission to Southeast Asia and the
Paoifio (Committee print), S3d Cong., 2d sess., Jan. 29
1954.

Department of Stale Bulletin

The imposition on Southeast Asia of the politi-
cal system of Communist Russia and its Chinese
Communist ally would be a <rrave threat to many.
It should not be passively accepted, but met by a
unity of will and, if need be, unity of action.

Free World Unity

The present world situation calls for a large
measure of unity and cooperation on the part of
the non-Communist nations, not only in relation
to Indochina, but in relation to many mattei-s.
Not one of us alone could face with confidence an
encounter with the Soviet bloc. Its rulers now
hold in their tight control 800 million people and
they develop these people and the vast national
resources of their lands into a great power ma-
chine. This machine is equipped with the most
modern instruments of mass destruction. These
they develop with no inhibitions. Fortunately,
the free world capacity for instantaneous retali-
ation neutralizes this threat of mass destruction.
Otiierwise, this power to annihilate, coupled with
lack of all moral restraint, would be an intimidat-
ing influence of unprecedented potency.

None should doubt that the Soviet rulers still
seek world domination. The recent four-power
conference at Berlin served strikingly to demon-
strate that the Communist leaders cannot reconcile
themselves to human freedom and feel that, be-
cause freedom is contagious, they must try to
stamp it out. This basic incompatibility of com-
munism with freedom drives them always to seek
to extend their area of control. This is not
merely due to lust for power, but to genuine fear
of freedom.

It is true that the Soviet leaders are professing
a desire for peaceful coexistence in Europe. But,
as the Berlin conference revealed, the Soviet
rulers will take no step, however little, to relax
their grip on their captive peoples. Not only do
they keep Germany divided and Austria occupied,
but they seek by every device to extend their power
to Western Europe. They seek to perpetuate
divisions, notably between France and Germany,
which cannot possibly serve anyone who genuinely
seeks peace. They seek, bv infiltration, to disrupt
tlie unity and strength of Nato.

Only incredible blindness, or the most wishful
of thinking, could lead us to believe that the danger
is over and that each free nation could now safely
go its separate way. We must stay united.

The maintenance of unity calls for understand-
ing and forbearance and coo]>cration on the part
of all of tlie free nations. There is a natural im-
patience in each free country witli the conditions
which require us, for so long, to walk in step with
each other. In some countries, there are those

who protest that the cooperation of their govern-
ments in this common cause shows Subserviency
and that they should prove their independence by
practicing isolationism. Some in this country
feel that the United States would do better if i't
I'elieved itself of military and economic liurdens
and political anxieties whicli now thrust them-
selves upon us from every quai-ter of the globe.

The main goal of Soviet strategy is to break the
free world apart. All of their diplomacy, their
propaganda, their pressures, their inducements,
have this aim. These efforts are not altogether
without success.

This United States mutual security program is
one of the ways to prevent the success of Soviet
strategy. It helps indispensably to maintain a
unity which is vital to our own security. With-
out tiiat unity, the United States would quickly be
forced to become a garrison state and the stran-
gling noose of communism would be drawn ever
tighter about us.

I urge, therefore, that this program be given
your prompt and sympatlietic consideration. It
is a measure for the security of the United States
and for the maintenance of freedom in the world.

Iranian Oil Negotiations

Press release 189 dated April 10

FoUoicing is the text of a statement ty Secre-
tary Dulles regarding the forthcoming oil iiego-
tiations at Tehran:

The U.S. Government takes satisfaction in the
fact that negotiations ai-e about to begin at Tehran
between the Iranian Government and representa-
tives of the oil companies from several countries.
We understand that these negotiations will have
as their purpose the resumption of large-scale oil
production in Iran on terms consistent with the
reasonable safeguarding of foreign capital within
the structure and rights of the national sover-
eignty.

The U.S. Government is not directly involved
in the commercial negotiations but will observe
them with great interest. The interruption of oil
])roduction seriously hindered Iran's own etlorts
toward social and economic ])rogress, ami the
resum])tioii of the flow of oil with consequent
revenue will strengthen a friendly Middle Eastern
country.

The issues which are involved in the negotia-
tions will, no doubt, re([uire careful study. How-
ever, already thei'e is evidence of good will and
mutual respect wliieli gives good iiope that a satis-
factory agreement can be reached.

April J 9, J 954

583

Berlin Rebuilds

ECONOMIC RECONSTRUCTION OF WEST BERLIN, 1948-1953

hy Margaret Rupli Woodward

Berlin is a city which has achieved a remark-
able recovery since the dark days of 1948 and the
blockade. Perhaps the most spectacular manifes-
tation of this revival is the creation of about
200,000 new jobs. This has meant an increase of
approximately 20 percent in the number of em-
ployed persons. Because of changes in the pop-
ulation, however, there is much to be done to re-
duce the burden of unemployment. The story of
success despite heavy odds is in large measure the
history of United States supported investment
programs.

Allied Support of Berlin

During the Four Power Conference of Janu-
ary-February 1954, Berlin became for a time a
focal point of world attention. The Allies had
long befoi'e made clear the importance they at-
tached to this city. In a Tripartite Declaration
at Paris May 27, 1952, the United States, the
United Kingdom, and France stated :

The security and welfare of Berlin and the mainte-
nance of the position of the Three Powers there are re-
garded by the Three Powers as essential elements of the
peace of the free world in the present international
situation.

Wlien the Four Power Conference ended with-
out agreement to reunify Germany through free
elections, the three Western Governments again
expressed their concern over the effect on Berlin
of a continued division of Germany :

As regards Berlin, the three Governu.ents reaffirm their
abiding interest in the security of the city as expressed
in the Tripartite Declaration of May 27, 1952. They will
do all in their power to improve conditions in Berlin and
to promote the economic welfare of the city.

Berlin has a number of times in recent years
been the center of international attention. All
eyes were on the city at the time of the Berlin
airlift of 1948, during the riots of June 1953, and
again during the food distribution to East Ber-

584

liners and East Germans in the summer of 1953.
Behind these dramatic outward events. West
Berlin, with the help of the Federal Republic
of Germany and the United States has been
steadily and patiently rebuilding its shattered
economy by means of a series of economic recovery
programs. Outlined below are some of the eco-
nomic programs which have maintained Berlin
as an island stronghold 100 miles inside the Iron
Curtain.

Emergence From the Abnormal Situation
of the Airlift

During the period of the airlift in 1948-49, de-
spite a low standard of living compared to present
levels, morale was high with a united determina-
tion to oppose the common danger. Berliners,
workers and employers alike as well as Allied per-
sonnel in Berlin knew the camaraderie which
comes to those helping each other in times of
crisis.

When the Soviet blockade ended in May 1949,
there came a let-down. West Berlin still lay
in ruins, with most of the city's industrial estab-
lishments destroyed or dismantled. Economic de-
pression hung over the city. Not only the popula-
tion of Berlin, but refugees from the Soviet Zone
and returning prisoners of war, were seeking jobs,
and at the beginning of 1950, about 800,000 out
of the total population of 2,100,000 (38 percent)
were dependent on some form of public aid. The
picture looked as follows in February 1950:

Unemployed 308,000

Wage and salary earners 690, 000

Total labor force 998, 000

Unemployed as % of labor force 30. 8%

Meanwhile, production was approximately a third
of 1936, while in the Federal Republic it was close
to 100 percent.

Deparfmenf of Sfafe Bulletin

Plans for Economic Reconstruction 1950-1953

In September 1949 the Federal Republic as-
sumed authority at Bonn. Berlin, however, re-
mained isolated both politically and economically.
Berlin's political revival was symbolized at the
dedication of the Freedom Bell in October 1950
with Mayor Ernst Renter's statement, "The ebb-
tide has passed and now the flood-tide has set in."
The city's economic revival had not yet taken
effect, and many Berliners must have wondered
what the future held in store. But the ground-
work had been laid when the Office of the U. S.
High Commissioner and the Bei"lin City Govern-
ment drew up two economic programs: (1) an
industrial investment program, the objective of
which was to double industrial production and
create 250,000 new jobs between January 1951 and
January 1955 at an expenditure of DM 1,540 mil-
lion,' and (2) a work relief program, which gave
work immediately to 50,000 persons.

The Investment Program

Since 1950, over a billion DM of Eca-Msa-Foa
counterpart funds generated by dollar aid to
Western Germany and Berlin have been pro-
gramed for the Berlin Investment Program.
Other funds have also gone into Berlin invest-
ment as individual firms have replaced and mod-
ernized plants and equipment. It is the counter-
part funds derived from European Recovery aid,
however, which have given the most direct impetus
in creating new industrial capacity in Berlin and
thus new jobs to mitigate the city's unemployment
problem.

These counterpart funds have flowed into every
corner of Berlin's economy. Quick results could
best be secured by means of loans to large, well-
established firms and industries such as the ma-
chinery and electrical industries. Of the billion
Deutsche mark total, DM 800 million was loaned to
Bei-lin manufacturing firms between 1950 and
1953. Three-quarters of this (76 percent) went to
Berlin's larger manufacturing firms (10 percent
of the firms receiving loans) . The remaining one-
quarter, or DM 200 million, went to smaller and
medium size firms. In addition, DM 50 million
U. S. counterpart funds were allotted to very small
industry and handicraft establishments, and DM
65 million went into the construction of housing in
West Berlin. Increasing efforts are now being
made to channel a greater proportion of U. S.
counterpart loans to small firms and to secure a
greater diversification in Berlin's industry.

The accompanying table shows the amounts of
U. S. counterpart pi'ogramed for various parts of
West Berlin industry to individual firms, between
September 1949 and October 31, 1953.

Funds for Different Economic Sectors,
West Berlin '

Cumulative to October 31, 1953 '

(DM minions)
Amount programed

Food and agriculture 1.85

Electric energy 107. 0

Gas and water 34. 5

Iron and steel 25. 7

Mechanical engineering 121. 2

Electrical engineering 254. 7

Chemical industry 25. 9

Small industry and handicraft 52. 5

Other industry 107.8

Transport and communicafions 50. 8

Housing 64.9

Tourism 3.9

Research 26. 4

Not yet assigned to sectors 185. 4

Total 1, 062. 55

'Handbook of Economic Statistics: Federal Repuhlic of
Germany and Western Sectors of Berlin (Office of Eco-
nomic Affairs, Hicog, Bonn, Dec. 1, 1953), p. 55, "Eca/Msa
and Garioa Counterpart Investment Programs by Sector —
West Berlin." Table includes Worlving Capital Credit
Programs (DM 55 million), excludes Order Financing
Programs (DM 135 million).
= Programing by years as follows: (DM millions)

1949-50 265.1

50-51 3.35.1

51-52 100.0

52-53 362.35

1. 062. 55

" The rate of conversion here used is DM 4.21=$1. This
plan was developed by HICOG in 1951.

April 19, 7954

Several Kinds of Investment Aid Needed for Berlin

Berlin's needs are varied. There was an acute
shortage not only of long-term investment loans
for industry but also of working capital. DM 55
million of U.S. counterpart funds were programed
since the inception of the program in 1953, in
order to provide working capital funds and
make use of industrial capacity already exist-
ing in the city. Funds were also needed to finance
orders placed in Berlin by purchasers in AVcstern
Germany and abroad, and DM 135 million of U.S.
counterpart has been programed for Order Fi-
nancing. As the conditions in West Germany im-
prove, these programs are to a large extent being
taken over by the Germans and are financed out
of German earnings and production, but at tiie
outset U.S. counterpart funds were essential to
economic recovery.

Recent programing for Berlin investment has
also included a type of financing new to Germany,
the Equity Financing Program. Its purpose is to
exi)and production by firms with limited collateral
or conventional borrowing power, but witii soinid
economic potential.

Tills Equity Financing Program came about as
follows. In order to accelerate favorable economic
developments, the Mutual Security Agency ar-
ranged for a technical-assistance team of economic.

585

engineerino;, and regional-development specialists,
under the direction of a prominent New York firm
of management consultants, to go to Germany
to review the Berlin situation. The report of this
team in December 1952 confirmed the U.S. view
that future expansion of employment called for
more empliasis on consumer goods, better market-
ing methods, and management training.'-

To achieve the goal of addition to capacity, it
was recommended that counterpart be used to pro-
vide equity financing as well as loan funds. This
was considered of particular importance because
of the difficulty of getting private venture capital
into West Berlin and because of the thin equity
position of many firms. Practical developments
such as this recommendation liad to wait on long
negotiations because of a failure on the part of
some to understand the usefulness of such financ-
ing. The Germans have tended to follow tra-
ditionally conservative banking practices and have
hesitated to adopt new procedures. This hesita-
tion may be attributable to earlier inflationary ex-
periences and to the fact that the German banking
structure found itself prostrate at the end of the
war and Berlin banks are even still hard pressed
for tJie necessary liquidity to assure adequate pri-
vate medium and long-term capital. The Equity
Financing Progi-am was initiated, however, in
June 1953 with the agreement to devote DM 100
million of U.S. counterpart to equity programs to
be administered through the Berlin Industrie
Bank. This type of aid is particularly desirable at
this time. It is a source of risk capital which can
be advanced to small firms and new business, and
thus provides more jobs for the funds invested than
the heavier industries, with larger overhead ex-
penses.

The Berlin Work Relief Program

Berlin's Work Relief Program has, since the
winter of 1950, served the dual purpose of pro-
viding work for the unemployed and financing for
some investments of long-term economic useful-
ness which could not be privately financed. Ex-
penditures on Berlin work relief between April
1950, when the program first began, and March
1954 total approximately DM 863 million, with
contributions from U.S. counterpart totalling DM
535 million, or approximately 60 percent. More
than half of the total amount spent was used for
productive projects such as housing, construction
of commercial and industrial buildings, and public
utilities. A quarter of the total was used for
rubble clearance; 11 percent was used for govern-
ment construction work, and 7 percent for the cre-
ation of jobs for apprentices and white-collar
workers.

" For a summary of proposals based on this report, see
Bulletin of Mar. 2, 1953, p. 328.

During the course of the Work Relief Program,
three significant developments have taken place ;

1) The program has become increasingly more
j^roductive in that less emphasis has been placed on
merely keeping the greatest number of people
occupied.

2) The Germans have borne an increasing pro-
portion of the cost of the program. This is shown
by the fact that approximately 85 percent of the
cost of the first work relief progi-am was financed
out of U.S. counterpart, whereas U.S. counterparl
is financing only about 37 percent of the 1953-51
progi-am.

3) As the Berlin economic situation has grad
ually improved, yearly expenditures for worl<
relief have varied from DM 270 million in 1951
to D]M 161 million in 1953-.54, and may rise slightly
above this figure in 1954-55.

The Berlin Government has outlined a new
Work Relief Program for the German fiscal year
beginning April 1, 1954. Included in this pro-
gram are such i:)rojects as housing construction
and repair, commercial construction, roads, water-
ways, rubble clearance, parks, gardens, and proj-
ects to employ white-collar workers.

Federal Republic Aid to Berlin

Since it came into being in September 194'.'.
the Federal Republic of Germany has spent about
DM 3.6 billion ($859 million) on behalf of Ber-
lin. The Federal Republic's contribution to Ber-
lin in 1953-54 will be about one and a half billion
DM ($360 million), of which DM 6.50 million was
contributed to underwrite the Berlin budget
deficit. The Federal Republic has also granted
certain tax privileges to Berlin to stimulate the
production and sale of Berlin goods. The West
German Cabinet appointed a Federal Deputy
whose special responsibility is the promotion of the
Berlin economy. The Federal Deputy for Berlin,
together with the Berlin Marketing Council es-
tablished by the Berlin business community to pro-
mote trade development and partially financed by
U.S. counterpart, have concentrated their efforts
on securing orders for Berlin both from Western
Germany and from abroad. The Federal Rail-
ways and the Post Oilice, for example, place large
orders in Berlin each year.

The Federal Republic has also received in its
various Laender (states) the greater part of the
300,000 refugees who fled into Berlin from East
Germany in 1953, and has assisted in lifting the
relief burden from the city. Speaking in Berlin
on Februarj^ 23, in the wake of the Four Power
Conference which failed to secure the hoped-for
reunification of Germany, Chancellor Adenauer
in the course of a special trip to Berlin promised
to continue and increase measures of support for
the city.

586

Oepat\mBn\ of State Bulletin

United States Aid to Berlin 1945-54

In addition to Federal Kepublic aid to Ger-
many, it has tal^en about $750 million of U.S. aid
since lO-to to bring Berlin to its present state of
recovery. In the fiscal year 1952-53 the Mu-
tual Security Agency aided Berlin to the extent
of $22 million. This was supplemented by $50
million made available by President Eisenhower
in June 1953 for the Berlin stockpile and invest-
ment programs,^ and $15 million made available
for refugee housing in Berlin in 1954. The larger
portion, $10 million, was spent in the Federal Re-
public to aid in tlie absorption of refugees coming
through Berlin : the remaining $5 million was for
housing actually in Berlin.

It is generally recognized that the needs of Ber-
lin, although they have changed considerably over
the last few j'ears, are continuing and urgent. In
this connection, the continuation of U.S. occupa-
tion responsibilities in Berlin is important. Fur-
thermore, Harold E. Stassen, Director of Foreign
Operations, at a press conference in January 1954,
called attention to the city of Berlin as one of the
"special situations'' for which financial aid would
be requested in 1955, stating, "We contemplate
carrying on a level of economic aid necessai'y for
a healthy economic picture in Berlin."

Berlin's Economic Situation at the End of 1953

The progress since the days of the 1948-49 air-
lift and the bleak winter of 1950 has really been
more than could have been anticipated. Despite
fluctuations due to seasonal and other reasons, un-
employment has fallen steadily since 1950 and
reached a low of 207,000 in October 1953. Indus-
trial production has doubled since 1950 and is now
about 66 percent of 1936. Exports in the same
period have been quadrupled. Increasing indus-
trial orders are being received, orders received
in December 1953 being 30 percent above Decem-
ber 1952.

Any effort to eliminate unemployment in West
Berlin is confronted with many difficulties. Con-
trary to earlier trends, the population of West Ber-
lin has increased in the last 4 yeai'S. Perhaps the
best measure of success, if adequate statistics were
available, would be tlie increase in job opportu-
nities. It is estimated, for instance, tliat the num-
ber of new jobs created in Berlin since 1950 has
been close to 200,000. In addition to the reduc-
tion in unemployment of about 100,000 since the
high point in 1950, some 30,000 workers formerly
employed in the East Sector of Berlin have been
absorbed in West Berlin. The number of relief
worlvei's has also decreased by 30,000 (from 50,000
in 1950 to 20,000 in 1954). An estimated 40,000
to 50,000 of the 500,000 refugees wlio came into
Berlin from East Germany have also remained

" Ihiil., June 29, 1953, p. 898.
April 19, 7 954

to become a part of the West Berlin labor force.

This increase of employment represents a striking
tribute to the effectiveness of the investment
programs.

But Berlin's economic problems cannot be said
to be solved while one worker in five is still un-
employed, while its production index is lagging
far behind West Germany, and while there is the
ever-present danger of a new influx of refugees
fi'om Soviet Germany hanging over the city.

Problem of Underemployment and
Underconsumption

Berlin is frequently referred to as an island.
"^^Hiile emphasis is usually placed on the ])olitical
aspects of the situation of the area, separated from
the Federal Republic and surrounded by Commu-
nist-dominated territory', there are some special
economic aspects which are of significance for the
Berlin investment program. Restrictions on the
sliipment of o;oods are far less serious than is some-
times tliougTit, since goods can flow over the
corridors to the West, in and out of Berlin, and
into the Communist East Zone. Its labor sujiply
and to a lesser extent its capital equipment, raw
materials, and finished goods are affected by
transport hazards and political pressures which
tend to make of the city an isolated entity. The
consequences of this situation for economic policy,
while somewhat overshadowed by the immediate
political problems and recurring emergencies, are
perhaps deserving of special consideration.

The economic relationships in Berlin are in-
terestingly illustrative of some of the problems
discussed by Keynesian economists and all those
interested in the problems of underconsumption
and underemployment. There are, for instance,
in West Berlin substantial numbers of skilled as
well as unskilled workers who are unemployed.
There is underconsumption not only among the
refugees and the unemjiloyed, but among others
on work relief, or in the lower-income brackets.
At the same time, there seems to be unbalanced
capital development, with considerable underin-
vestment in certain lines. In the city itself there
is no evidence of oversaving, but, for artificial
reasons, the consequences of oversaving appear in
the lag in the standard of living of large groups
of tlie people behind the economic ]>otential for
develojiment which the city has shown.

While it is not possible here in a survey of recent
investment programs to enter into an economic
study of this unique case, such a study would be
interesting in theory and probably useful in prac-
tice. Even witliout such a study, one can tenta-
tively draw a number of conclusions which might
influence later action. These conclusions indicate
the importance of expanding the internal market
Berlin as an effort parallel to the expansion of
the market for Berlin goods in the West German
Republic, Europe, and the outside world. There

587

is also an indication that more attention should
be directed to the production of consumer goods.
Although fears of inflation which have preoccu-
pied some economic leaders in Berlin are perhaps
exaggerated, means must be found to increase
mass purchasing power, cut down unemployment,
increase production, and create a more balanced
economic interchange. There has been no serious
question as to the usefulness of the types of capital
investment made so far. Proposals have been
brought forward, however, for greater diversifi-
cation and a more comprehensive effort to employ
the unemployed and to produce goods which the
unemployed can consume. Berlin is reasonably
able to compete. It should be possible under these
circumstances to reduce somewliat, at least per-
centage-wise, the importation of consumer goods.
These considerations will all influence the future
direction of the investment program with the goal
of reducing the dependence of Berlin on outside
aid.

Unemployment in Berlin is an issue over which
the C!ommunists are constantly endeavoring to
make political capital. Just before his death in
September 1953, Mayor Reuter of Berlin, in
thanking President Eisenhower for the gift of
food from the United States to the people of
the Soviet Zone of Germany, raised the problem
of unemployment in Berlin in the following
words : *

You know that in spite of al! difficulties, the peoijle of
Berlin have never been diverted from their determination
to maintain and defend the freedom and independence of
Berlin. Without the unparalleled attitude of the
Berliners during the last years, the revolts of June IG and
17 which attracted the attention of the whole world would
have never happened. Therefore, I should like to express
my conviction 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 surrounding Soviet Zone.
Therefore, the reduction of the number of unemployed in
Berlin is an urgent political 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 l)e in
a position to add another decisive victory to the moral and
political success achieved by the events of .June IG and 17
and the distribution of food which is still being carried
through.

President Eisenhower showed his awareness of
Berlin's problems by responding to Mayor
Renter's appeal in the following words : *

The -American people have not lost sight of the serious
difficulties with which the ix>ople of West Berlin must
cope .so long as they are .seiiarated from their fellow
Germans in the East and West, and cannot enjoy free
communication and unimpeded access to supplies of raw
materials and markets for their production. While great
progress 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 ability 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 authori-
ties and the Office of the United States High Commis-
sioner. If proposals can be devised which would give
promise of a further substantial increase in employment
in Berlin, the United States Government would be pre-
pared to explore with the Federal Republic what further
steps the two governments might find it possible to take
to achieve this objective.

The ideas expressed in this exchange of letters
continue to hold true in 1954, and President
Eisenhower's words still represent U.S. policy
toward Berlin.

• Mrs. Woodward, author of the above article,
is a foreign-affairs officer in the Office of German
Affairs.

Western Powers' Attitude
Toward East German Government

Following is the text of a joint declaration
issued at Bonn on April 8 hy the U.S., French,
and British High CoTV.missioners for Germany:

The Allied High Commission desires to clarify
the attitude of tlie governments which it repre-
sents toward the statement issued on March 25 by
the Soviet Govermnent, purporting to describe a
change in its relations with the Government of
the so-called German Democratic Republic'
This statement appears to have been intended to
create the impression that sovereignty has been
granted to the German Democratic Republic. It
does not alter the actual situation in the Soviet
Zone. The Soviet Government still retains ef-
fective control there.

The three governments represented in the Allied
High Commission will continue to regard the
Soviet Union as the responsible power for the
Soviet Zone of Germany. These governments do
not recognize the sovereignty of the East German
regime which is not based on free elections, and do
not intend to deal with it as a government. They
believe that this attitude will be shared by other
states, who, like themselves, will continue to recog-
nize the Government of the Federal Republic as
the only freely elected and legally constituted gov-
ernment in Germany. The Allied High Commis-
sion also takes this occasion to express the resolve
of its governments that the Soviet action shall not
deter them from their determination to work for
the reunification of Germany as a free and sov-
ereign nation.

' lUd., Oct. 5, 1953, p. 458.
588

' For a Department statement on this subject, see B0i>
LETiN of Apr. 5, 1954, p. 511.

Department of State Bulletin

The Importance of Indochina

hy Under Secretary Smith ^

Q. Wliy is Indochina important to Americans?

Mk. Smith : For one vital basic and two special
additional reasons. In the first place, the vital
basic question is : Shall we or can the free world
allow its position anywhere and particularly in
Asia to be eroded piece by piece ? Can we allow,
dare we permit, expansion of Communist Chinese
control further into Asia ? Propagandists of the
Soviet Union and of Communist China have made
it clear that their purpose is to dominate all of
Southeast Asia. Remember that this region helps
to feed an immense population. It stretches all
the way from India to Japan. It's a region that is
rich in raw materials, full of tin, oil, rubber, iron
ore.

Now, from the strategic point of view, it lies
across the most direct sea and air route between the
Pacific and South Asia. There are major naval
and air bases located in the area. Communist
control of Southeast Asia would threaten the
Philippines, Australia, and New Zealand directly,
would threaten Malaya; it would have a very pro-
found effect upon the economy of other countries
in the area, even as far as Japan.

Q. The President, at his news conference on
April 7, described the process of Communist con-
quest as the "falling domino" principle. Is that a
good description of the threat in Southeast Asia?

Mr. Smith : Yes, it is. If Indochina is lost to
the Communists, Burma is threatened, Thailand is
threatened, the Malay Peninsula is exposed, Indo-
nesia is subject to the gravest danger, and, in addi-
tion to these countries and their possible loss, there
is the possible loss of food source. I have already
mentioned the strategic raw materials, the bases in
the area ; and, while they are of enormous impor-
tance, the most important thing of all is the pos-
sible loss of millions and millions of people who
would disappear behind the Iron Curtain. There
are enough millions behind the Iron Curtain now.
So what's at stake in Indochina ? It is the human

' Remarks made in answer to questions prepared for use
on "The American Week" over the CBS television network
on Apr. 11 ( press release 190 dated Apr. 10) .

freedom of the masses of people for all that enor-
mous area of the world.

Q. General Smith, can Indochina be saved, and
how?

Mr. Smith : The position of the United States
is that, if there is a united will among the free
nations East and West, a will that is made clear to
the Communists so there can be no misunderstand-
ing on their part, that this of itself would give
pause for further adventures and aggression.

Secretary Dulles said in an address on April 7 : '
"The potential danger in the situation is very
gi-eat, and it needs to be soberly appraised with a
view to seeing whether a united will can be cre-
ated. With a united will created, the need for
united action might diminish." Mr. Dulles is in
London now, and from there he will go to Paris
to exchange views and to determine the possibili-
ties of strengthening the situation. Other comi-
tries in the area are vitally concerned, and they
recognize the existing peril. Thailand has al-
ready indicated that they are willing to stand
with us in an association of nations to limit the
possibility of further Communist penetration in
the area.

Q. We already pay more than 70 percent of the
cost of this war. Why is not that enough ?

Mr. Smith : I don't minimize the importance of
American aid. We've done a very great deal. But
I think it is misleading to depict the war in Indo-
china in terms of percentages. There is no ques-
tion about the extent and the nature of the sacri-
fices of the French in supporting and fighting this
war. They have been at it now for almost 8 years.
A mere statement of percentages of cost would
leave out the human factor of French and Indo-
chinese casualties. American assistance isn't only
in the form of guns, ammunition, and materiel,
but it is also in the form of support for the whole
budgetary position of France due to the grave
commitments that France has both in the Far
East and in Europe. The only additional request
we have had recently has been to meet the si)ecial
military situation at the moment, and that's the

' Not printed here.

April 19, 1954

589

battle of Dien-Bien-Phu. Once the battle is
joined, nothing should be withheld as long as suc-
cess is possible. Whatever contribution the United
States can make to help prevent the Communist
conquest of Southeast Asia and to help the gallant
band that is defending this advance ]30st from
being overrun cannot be withheld because of per-
centage figures. I would like to emphasize that,
in my opinion and insofar as the free world is
concerned, the French Union forces at Dien-Bien-
Phu are fighting a modern Thermopylae.

Consultations With U.K., France
Regarding Southeast Asia

Statement iy Secretary Dulles

White House press release dated April 10

I have just been talking with President Eisen-
hower about the quick trip to Europe which I am
making. I am getting off tonight for London
and for Paris, and 1 expect to be back by the end
of the week. I am going in order to consult with
the British and French Governments about some
of the very real problems that are involved in
creating the obviously desirable united front to
resist Communist aggression in Southeast Asia.

As President Eisenhower said at a recent press
conference, the area is very important from the
standpoint of its people, its economic I'esources,
and from the standpoint of its strategic position
in the world.

Today the forces of aggression seem to be con-
centrating just at one point, at Dien-Bien-Phu
now, where the resistance is extremely gallant
against overwlielming odds.

But actually the danger is not at one point.
There is danger to the entire area. It affects the
vital interests of many nations in Southeast Asia
and in the Western Pacific, including the Philip-
pines and Australia and New Zealand, with whom
we have mutual security treaties.

Already the Government of Thailand, one of
the United Nations members which has sent troops
to fight with the United Nations in Korea, told
me yesterday that their Government was entirely
in agi-eement with our views and that they would
join with us in creating this imited front to save
Southeast Asia.

This Government believes that, if all of the free
peoples who are now threatened unite against the
threat, then the threat can be ended. The Com-
munist bloc, with its vast resources, can win suc-
cess by overwhelming one by one little bits of
freedom. But it is different if we unite. Our
purpose is not to extend the fighting but to end

590

the fighting. Our purpose is not to prevent a
peaceful settlement to the forthcoming Geneva
conference but to create the unity of free wills
needed to assure a peaceful settlement which will
in fact preserve the vital interests of us all.

Unity of purpose calls for a full understanding.
It seemed that this understanding would be pro-
moted if I would personally go to London to talk
to the British Government and go to Paris to talk
to the French Government so that there could
be a more satisfactory exchange of views than is
possible by the exchange of cabled messages.

It was M. Bidault, Mr. Eden, and I who at Ber-
lin agreed to have the Geneva conference to dis-
cuss peace in Korea and Indochina. Now the
three of us need to join our strength and add to
it the strength of others in order to create the con-
ditions needed to assure that that conference will
not lead to a loss of freedom in Southeast Asia,
but will preserve that freedom in peace and justice.

That is the purpose of my trip. It is, I empha-
size, a mission of peace through strength.

U.S. and U.K. To Discuss
Enemy Property Claims

Press release 18S dated April 8

The Department of State and the Office of Alien
Property, Department of Justice, expect to hold
meetings about the middle of May 1954 in Wash-
ington with representatives of the British Enemy
Property Custodian's Office. The purpose of these
meetings is to discuss conflicting claims to enemy
property arising between the United States and
Great Britain. In the course of these discussions
cases will be taken up involving American interests
in property in (ireat Britain which may have been
seized or blocked as enemy property.

The Department on February 6, 1951, issued
press release 93 ^ requesting claimants to report
to the Department of State any American interests
in property in Allied or neutral countries seized
or blocked as "enemy" property. Individuals hav-
ing claims with relation to proj^erty in Great Brit-
ain, which have heretofore not been submitted are
invited to submit them urgently and before May
15 to the Department of State, as it is expected
that the meetings will provide the last opportunity
for securing protection for such claims. If a com-
munication has been transmitted to the Depart-
ment by claimants with relation to property in
Great Britain, it is suggested that it would be
helpful to submit any information which would
be needed to bring the communication up to date.

' Bulletin of Feb. 19, 19.51, p. 294.

Department of Slate Bulletin

strengthening of Anglo-American Ties

hy W/nthrop W. Aldrich
Ambassador to Great Britain '

Recently, Secretary of State Jolm Foster Dulles
said :

There is need, as never before, of cooperation between
the free nations. Others recognize that. So do we. To
maintain a cooperation of the free is a difficult and delicate
process. Without mutual respect and friendship it would
be impossible.

It is my firm belief, which I am sure you must
share, that nothing accelerates "mutual respect and
friendship'' like personal association and under-
standing. A theoretical knowledge of other people
and countries can never take the place of knowl-
edge gained by actual experience.

The times in which we live have made it impos-
sible for us not to concern ourselves about the
safety and well-being of our friends.

This concern cannot be a "Father knows best"
attitude, whicli by its nature is self-defeating. As
Mr. Dulles said in Caracas a few weeks ago :

We do not believe in a world of conformity. We believe
that there is a richness in diversity. Just as this universe
in which we live was created as a universe of diversity, so
tlie human institutions which man builds are properly
diverse, to take account of human and geographical
differences.

To break down l)arriers of prejudice and to
create conditions in which our mutual knowledge
and skills can be freely exchanged are surely two
of our primary objectives today. Personally, I
am completely convinced that these aims are best
achieved through the exchanges of persons, and
it is one of the most heartening developments of
the postwar years that these exchanges, on both
governmental and private levels, have increased
so enormously.

The old, established programs like the Rhodes
Scholarsliips, wliicli I feel liave yielded incalcu-
lable good to my country and to the Empire, have
been augmented by many other similar schemes.
Most of you are familiar with the Fulbright and
teacher-exchange ]irograms, as well as witli the
Leverhulme and NufHeld Fellowships. We are
particularly ]iroud that last year the British Gov-

' Address made before the riiatubprs nf Commerce of
East Anglia at Norwich, I'^iig., on Mar. 20.

ernment established the Marshall Scholarships, in
honor of Gen. George Catlett Marshall, under
which 12 American students each year will be in-
vited to study at British universities.

In my country, American members and friends
of the English Speaking Union have recently set
up a fund to honor King George VI under which
it is hoped that at least 50 students a year from
the Commonwealth will be invited to study at
American universities.

Eisenhower Fellowships

A more recent fund of this kind, about which
you may not have heard, has been set up in the
form of the Eisenhower Exchange Fellowships.
The President's deep convictions about the impor-
tance of the exchange principle inspired a group
of his fellow citizens to create these fellowships
as a birthday gift to him. With an ultimate aim
of 100 students a year from all i)arts of the free
world, fellowships will be given to applicants
from such fields as communications, engineering,
agriculture, and business.

All of us realize, however, that vitally impor-
tant as these programs are, they are only a start in
the right direction. Travel and exchange on a
mass scale are to my mind the ultimate goal, but
until we can work out the complicated difficidties
of international finance we nuist try to perfect the
means we have at hand.

In a way, I feel it is almost an impertinence to
talk to the people of Norwich about the impor-
tance of understanding between our two countries.
After all, you opened your hearts and your homes
to the Americans here during the war. flying from
such bases as Snetterton, Horsham, Saint Faith,
Thor])e-Abbott, and Watton. Our fliers wore
olive-drab tmiforms in those days, and flew Tlum-
derbolts. Liberators, and Flying Fortre.sses. The
kinsliip born of so many similarities of tongue and
belief was cemented in the mutual effort against
a common foe.

Wlien peace came — and sometimes listening in
tlie cold, darlc nights to the drone of the planes
overhead it nuist have seemed that it would never

April 79, 1954

591

come — our men returned to their homes in Idaho
and California and Texas and Massachusetts, some
no doubt to Norfolk, Va., and Norwich, Conn.
They returned with a deep admiration and a sin-
cere fondness for Great Britain and its people, and
particularly for their hosts and friends here in
Norfolk.

Incidentally, I should like to take this oppor-
tunity to state that I have had a message from
Percy Young, current president of the Second Air
Division Association, who has asked me on behalf
of the Association to extend the most cordial and
continuing best wishes to all the members of this
community.

All of us had lived for the day of peace, and
many had died to help achieve it. When it came,
you and we went about our business, thinlving that
never again could the world let itself be engulfed
in such cataclysmic events. But we did not reckon
with the surge of Communist imperialism. New
and ugly phrases became commonplace : Iron Cur-
tain, Berlin Blockade, Cold War, Slave Labor,
"People's Democracies." The Allies who had
given to the utmost to destroy the evils of fascism
now heard themselves branded as "Fascist aggres-
sors," "imperialistic warmongers," and other stock
phrases from the Communist collection of epithets.

U.S. Servicemen Return

Not content with words, the Soviets became
daily more aggressive and more a deadly threat
to the peace of the world. In 1948, at the time of
the Berlin blockade, tension heightened. After
the closest consultation between our two Govern-
ments, American servicemen returned to the
United Kingdom at the invitation of your Gov-
ernment. First, the great transports and cargo
carriers appeared at British bases. Then, as the
crisis seemed to mount, B-29 Superfortresses set
down at Marham, Lakenheath, and Mildenhall—
combat ready. Later B-29s appeared at Scul-
thorpe, and the United States Air Force men re-
turned to Norwich, this time in Air Force blue but
still the same men or their younger brothers.

Eoyal Air Force stations were lent to the United
States Air Force, and Strategic Air Command
began a rotational training program — an eco-
nomic scheme designed to provide top combat
proficiency tests to the heavy bomber crews, and
at the same time to make plain to the Communist
world that the United States and United King-
dom were united once again to resist aggression
and to do all in their power to preserve the peace.

AVith the birth of the North Atlantic Treaty
Organization, the greatest coalition for peace the
world has ever seen, the relationships of our men
here changed. Britain extended its land facili-
ties to the U.S. Air Force, and in addition to the
bases lent for combat crew training, additional
bases were set aside for NAXO-assigned aircraft.

Today, approximately one-fifth of the 38,000

592

Americans stationed in Great Britain are assigned
to bases in or near East Anglia. Probably some-
times you must think all 38,000 are assigned right
here in Norwich. It is entirely understandable
that wliile we may be profoundly aware of the fact
that the international situation requires the main-
tenance of powerful United States air forces here
in Great Britain, at the same time the presence of
alien troops may occasionally become somewhat
irritating.

That is why earlier in this talk I spoke at some
length about the importance of the exchange-of-
persons principles. I realize fully that with so
many of our troops stationed here there are bound
to be some unpleasant incidents, though in all fair-
ness I think there have been remarkably few, and
those due more to unfamiliarity with the ways of
your country than to malice or evil intent. Yet,
if you can look on our boys as comrades engaged
in a common effort and realize that you and they
can most profitably exchange knowledge, skills,
and outlooks, I believe that you and they will find
that their presence here has been rewarding in
many ways in addition to our common purpose
of defending the peace.

I realize that to a large degree I am ])reaching
to the converted, for in my conversations with
General Griswold,^ Commander of our Third Air
Force, and with Brigadier General Stevenson,'
and other officers here, I have learned that the
American personnel stationed in the United King-
dom— and it goes without saying those stationed
in East Anglia — have no more community-rela-
tions problems here than they would at our bases
at home. That, I believe, constitutes a highly
satisfactory measure of the strength of the British-
American alliance. If I may say so, I am very
proud of this record of ours.

British Hospitality

On behalf of my country I would like to thank
you for the splendid eti'ort you of Norwich have
made toward extending hospitality and wholesome
recreation for our young airmen. For example,
I understand that the Women's Voluntary Service
operates an Anglo-American Club in Colegate
which only recently celebrated its second birth-
day. Nothing could be more helpful than a wide
extension of this sort of voluntary effort.

A scheme of greater scope, led by Air Chief
Marshal Sir George Pirie, is one in which I have
a very deep interest, for it ties in closely with ray
remarks on the values of the exchange program.
Briefly, Sir George and his associates are working
with local groups interested in bringing together
American service people and British of like back-

' Maj. Gen. Francis H. Griswold.

' Hrig. Gen. John D. Stevenson, Commander, 49tJi Air
Division, Tliird Air Force.

Department of State Bulletin

ground and mutual interests. For example, a farm
lad from Iowa would be interested in maize-grow-
ing near Norwich, or possibly in the sugar beet
crop. A former factory worker from St. Louis
prooably would be intensely interested in seeing
methods used here in the local shoe factory. A
sergeant's wife, a former elementary school
teacher, would welcome a visit to the local schools
and the opportunity to meet her British counter-
part. I understand that this scheme has already

been in operation for some time in several places,
and I hope that it will meet with the support of
both your communities and our forces.

I feel very deeply that if we work together to
perfect our mutual understanding, those ties be-
tween our countries wliich have been of incalcu-
lable importance to the peace and well-being of the
world will be even further strengthened. I hardly
need add that I can think of nothing more worth-
while than the strengtliening of those ties.

America and the New India

iy John D. Jemegan

Deputy Assistant Secretary for Near Eastern, South Asian and African Affairs ^

First of all let me say that, whenever troubled
relations between ourselves and the Indians exist,
this is not a cause of concern to the Communists.
There is little they would like better than to see
friction between the two countries develop. They
would like to see India and America alienated
completely from each other. They are trying to
accomplish just that right now. The Kremlin
today is using all the propaganda devices in its
possession to make the Indians feel that we are
their enemies ; that we represent a new imperial-
ism; that we intend to dominate their economy;
that we are bent on involving the whole world,
including India, in a new world war; that what
we hope to do and see in the area of the Middle
East and South Asia is carefully calculated to go
against Indian national interests.

These themes, let us admit, have not been se-
lected at random. They have been chosen with
the utmost care by the Soviets because tliey believe
that these are the lines which are most likely to
be believed in India.

Wliat the Communists do and say, however, is
not sufficient to have any very serious effect on
U. S.-Indian relations. Their strength in India
is not that great. But we must frankly admit
that today American relations with India are not
as completely cordial as we would like to see them.
There are various reasons for this. Partly it is a
case of mutual misunderstanding arising out of
the differing backgrounds of the two nations.
Partly, however, our differences arise out of ordi-
nary disagreements over the best ways to handle

' Address made before the American Academy of Politi-
cal and Social Science at Philadelpliia, Pa., on Apr. 3
(press release 176).

April 79, 7954

295403—64 3

specific problems. For example, we have dis-
agreed over the attitude which should be adopted
toward Communist China. It took us a long time
to reconcile our positions in regard to the Korean
truce negotiations. We have not seen eye to eye
over action to be taken in the United Nations re-
garding French North Africa and other questions
involving dependent areas. I could name other
instances of disagreement. The list might seem
formidable and discouraging, but I hasten to em-
phasize that a similar list could be drawn up for
almost any other major country in the world.
Even with our best friends, and sometimes espe-
cially with our best friends, we are bound to have
arguments.

Many of our disagreements with India are now
past history, and, I hope, in the process of being
forgotten. There is, however, one current prob-
lem which deserves special attention. It is the
most recent to arise and the main source of con-
cern in our mutual relations at the present moment.
That is the American decision to extend military
aid to Pakistan.

We made that decision for reasons well known
to Americans, but sometimes misunderstood
abroad.

Tliis country and many others believe that our
way of life is critically threatened by a predatory
power which recognizes that the greatest threat
to its existence is the very presence of democracy.
Soviet communism seeks to destroy us all. It
bears repeating tliat the actions of the Soviet
Union prove beyond a doubt that it will use every
means at its disposal, including war, to enslave
us. Unless adequate measures are taken by the
free nations acting together, it will succeed.

We have ample reason to believe that domina-

593

tion of the Indian subcontinent is a part of Soviet
objective.

As the Kremlin's intentions became clear, the
United States, as you know, in cooperation with
other free nations, took far-reaching steps to meet
the threat. These security measures included the
North Atlantic Treaty and comprehensive ar-
rangements in the Pacific area.

Power Vacuum in Middle East and South Asia

It has become apparent, however, that a power
vacuum exists in the Middle East and South Asia.
The countries of this region, largely lacking the
resources necessary for a strong military posture,
are also torn by other strains and stresses which
sap their strength. Thus, we have the conflict
between the Arab States and Israel, the Egyptian
dispute with the United Kingdom over the Suez
region, the tension between India and Pakistan
over Kashmir.

In addition, in many countries of the Middle
East the economic and political situations have
resulted in acute internal instability.

At the same time, this wide area remains of
immense importance to us. It contains nearly a
quarter of the world's population. It has tre-
mendous resources, including oil, many of which
are as yet untapped. It is a vital, strategic land,
sea, and air route between East and West.

If this part of the world is to live in freedom,
if it is to retain the capacity to develop its economy
to its own best interests, and if its political insti-
tutions are to mature within an independent
framework, we believe that it must have the ability
to defend itself against aggression. The threat
of aggression is ever present.

You will recall that early attempts to create a
sound military system in the area failed. Both
the idea of a Middle East Command and a Middle
East Defense Organization came to nothing for
one good reason : Both were born of initiative sup-
plied by outside powers. As Secretary Dulles said
when he came back from his trip to the Middle
East last spring, no collective security system can
be imposed from without. "It should be designed
and grow from within out of a sense of common
danger and common destiny."

Until very recently, time stood still as far as
defense of the Middle East was concerned, but
various hopeful signs have begim to show.

First, the Government of Pakistan asked the
United States for grant military aid.

This was a request which had to be taken
seriously. The Government and people of Paki-
stan are strongly anti-Communist. They have
indicated their desire to stand and be counted with
us in efforts to forestall the Kremlin's imperialism.
In World War II, the history of the fighting
forces from what is now Pakistan was a glorious
one, as was that of the troops from what is now
India.

594

We were well aware, however, that the Indian
Government would dislike U.S. military aid to
Pakistan. Its objections were carefully weighed
by us. On balance, in considering them, it seemed
clear to us that the consequences of this action
feared by India would not develop. Further, we
believe tliat as time passes India herself will see
that her apprehensions on the subject were not
justified.

During the lengthy debate in India while this
matter was being considered by us, it became ap-
parent that one motivation for India's opijosition
stemmed from fear that U.S. arms aid to Pakistan
would be used against India.

Thus, when the decision was made by President
Eisenhower to give military aid to Pakistan, he
made it absolutely clear in his public announce-
ment and in his letter on the subject to Prime
Minister Neliru ^ that the arms we would give
could in no way be used in aggression without his
taking appropriate action immediately, in ac-
cordance with his constitutional authority.

We firmly believe that India has nothing what-
soever to be alarmed about as far as this assistance
goes. The Government of Pakistan has indicated
to us that it accepts fully the definitive provisions
limiting the end use of the aid.

Beyond this, we believe that if the military
strength of the subcontinent is increased, it will
serve to deter aggression from the outside.

Now on this point we differ with the Indian
Government. It has expressed the opinion that
by this act the cold war is brought directly into
the subcontinent.

Very recently, in addressing the Indian House
of the People, Prime Minister Nehru said :

There are two approaches to this question of war and
peace. One is the approach of the feeling that war is
almost inevitable and therefore one must be prepared for
war. The other is that war must be avoided at all costs,
if not at all costs, at almost all costs. The two approaches
differ as everybody will see. Of course, nobody wants
war — or very few people. And yet many people may well
say, "We do not want war but how are you going to help?
War must come and therefore we must do this and do
that."

That is a legitimate approach. And yet if you lay
stress on war coming you lose tlie battle for peace and
war is likely to come because your minds have succumbed
to the prospect of war coming in.

That is the danger of the situation : Not that people
want war, but many people seem to succumb to the idea
of the inevitability of war.

Again, in the past Prime Minister Nehru has
put forward the idea of a "no war" area, of which
India and presumably the neighboring countries,
and perhaps others, would be a part.

I believe the origins of this attitude are many
and it is not possible, for me at least, to say which
carry the most weight. But they seem to include
the following:

•Buixetin of Mar. 15, 1954, p. 400.

Department of State Bulletin

A feeling that India can best tackle her pressing
internal problems if she avoids becoming involved
in the "cold war" and that her influence can most
effectively be exerted if she is not committed to
either side.

A conviction that she only stands to lose by put-
ting herself at least potentially in a position which
might offend either the U.S.S.R. or Communist
China, particularly the latter, and, at the same
time, a reluctance to alienate herself from the
West.

A deep-seated fear and hatred of colonialism
and imperialism and an identification of these with
the Western Powers, plus an awareness of the im-
plications of Communist totalitarianism.

A feeling that moral weight against war will
prevent it from coming.

There are no doubt other motivations and it may
seem that contradictions exist in those I have just
listed, but it seems to me that these, put together
in varying degrees of importance, may help to ex-
plain attitudes and expressions which appear puz-
zling to many of us.

We in the United States believe the cold war is
already on the subcontinent, as it is in every other
place in the world. It is there not through any-
thing we or the other free nations have done, but
through the actions and intentions of the Soviet
Union, Communist China, and the other satellites.

Lessons of Past Aggression

One cannot lightly dismiss the lessons of aggres-
sion in Poland or Czechoslovakia or Korea. It
could happen in the Indian subcontinent. If it
does, how will India defend herself — ^alone, or in
the strong company of others who believe her in-
dependence should be guarded?

Collective security is the keystone of our foreign
policy. In that concept, we think, lies the only
hope of preventing another Poland or Czechoslo-
vakia or Korea.

While the United States had under considera-
tion the question of military aid to Pakistan, Paki-
stan and Turkey had been holding talks which re-
sulted on February 19, 1954, in an announcement
that they intended "to study methods of achiev-
ing closer, friendly collaboration in the political,
economic, and cultural spheres as well as of
strengthening peace and security in their own in-
terest as also in that of all peace-loving nations."
An agreement on these lines was signed at Karachi
on April 2.

The United States warmly welcomed this de-
velopment and its decision to extend military aid
to Pakistan was made within its context.

Now, these matters have not made relations be-
tween the United States and India easy. On the
problems of security, it may not seem that the two
countries are likely to reach agreement in the near
future. We believe we are right and I am sure

that the Indian Government believes it is right.

Indian leaders are as entitled to their opinions
as we are to ours, and it is not profitable for either
of us to try to impose our viewpoint on the other.

But I do not concur with those who say that
friendship is being destroyed between us. India
and the United States are two great democracies.
We have more in common than we have in dis-
agreement.

Turning back, India, following the partition of
the subcontinent, was faced with tremendous in-
ternal and external problems. There was the prob-
lem of unifying the nation into a single political
entity from more than 500 separate states. There
was the problem of an already overtaxed economy
being thrown further off balance by the partition
itself. There was the problem of internal Com-
munist activity. And finally, there was the prob-
lem of India's relations with her newly created
neighbor, Pakistan.

While the new India moved quickly and effec-
tively to meet some of its most pressing internal
problems, the challenges were obviously too great
to be overcome immediately. Further, there were
and are forces trying to move against what the
present government of India considers its people's
best interests.

Tlie Communists, for example, both those in the
Kremlin and those in India taking their orders
from the Kremlin, don't want a unified India. In
India, as in other countries where they seek to
gain power, they sti'ive for disorder, disunity, and
discontent.

We find, for instance, that the Communists con-
sistently take the part of those who would weaken
the power of the central government. They con-
tinuously berate the concept of India's Five Year
Plan. They belabor the slowness in coming of its
benefits. They, as happened in our own country
during the depression, use the issue of unemploy-
ment to advance their aims.

India's Progress

However, Prime Minister Nehru's government
has moved steadily forward to the solution of its

groblems. He himself has taken a strong anti-
ommunist position. It is clear that he recognizes
the threat the Communists are to his country. At
one time, he had about 7,000 of them in jail.

The general elections of 1951-52 which were
held to form the government were a model of
democratic procedure. About 106 million people
voted. Unlike the Soviet system, the Indian sys-
tem gave them a wide range of parties and candi-
dates to choose from.

Unification of the country, which many de-
scribed as an impossible task, was accomplished
swiftly and efficiently.

Faced with a fantastically low living standard,
a desperate agricultural situation, the Indian Gov-
ernment has taken bold steps to increase food pro-

April 19, T954

595

duction, to stimulate industry, and to increase
India's foreign trade.

Wliile progi'ess has been made, there is a great
distance left to travel. If the present economic
program is successful, all well and good. If, how-
ever, the disruptive forces within the country gain
strengtli and totalitarian efforts meet with in-
creasing local successes, the countries of the free
world will have cause for alarm.

This brings me to the heart of our feelings
toward India. Regardless of our differences on
foreign policy and security matters, what the
United States is most interested in is a free, inde-
pendent India following the route of her own
choosing. It would be a major disaster if the
freedom of India's Government and people were
taken away — a disaster from which the rest of the
free world might never recover.

On our part, there are no hidden reservations or
limitations on ovir relationship with India. We
stand ready, as in the past, to help India where we
can and in ways that she may desire. We shall do
everything in our power to insure that our rela-
tions produce nothing but friendship and mutual
benefit. We are confident that this is India's de-
sire as well.

You will remember that the United States has
long given aid and encouragement to India. As
far back before Indian indei^endence as 1941, the
two countries exchanged representatives. In
1942, Col. Louis Johnson, President Roosevelt's
personal representative with the rank of Ambassa-
dor, particijiated in the unsuccessful efforts to
work out agreement between the British and In-
dians on India's political future.

Subsequently, the United States made its views
known to the British Government concerning its
support of steps which might be taken toward
fulfillment of Indian nationalist aspirations.

At the same time, we made great efforts through
the exchange of information, exchange of persons,
and other formulae to insure that America and
our way of life be known to the people of India.

We welcomed wholeheartedly the measures
taken toward real independence, the establishment
in 1946 of an Interim Government and a Con-
stituent Assembly to draft a constitution.

In October 1946 the two nations exchanged
ambassadors.

Following partition in August 1947 and as India
began to exercise the rights and responsibilities of
independence, the United States increasingly wel-
comed her active role in world affairs. We have
been, for instance, happy to see the active part
she has played in the work of the United Nations
and its specialized agencies — although we have not
at all times agreed with her position.

We have, further, taken a strong interest in the
tremendous economic problems which face India.
The average life expectancy is 32 years. About
75 million each year suffer the debilitating and
often fatal effects of malaria. She has a popula-

tion density of 308 per square mile compared to 54
in the United States. Her population is increas-
ing at the rate of 5 million a year. Her crop yields
are desperately low. Famine is an ever-present

danger.

U.S. Aid

To help avert a desperate grain shortage in 1951,
the U.S. Congi'ess loaned India $190 million to
purchase 2 million tons of wheat.

Since 1951, our programs of technical assistance
and special economic aid have been directed to
supplementing the extraordinary steps being taken
by the Indian Goveniment through its Five Year
Plan to raise the living standards of its people.
In 1952, our programs amounted to almost $53
million; in 1953, to $44,300,000; and in the present
fiscal year, to $89 million. Altogether, in grants
and loans, the U.S. Government has made about
$390 million available to India. We expect to
continue this assistance.

Under it, the United States is providing techni-
cal advice to India's Community Development
Program which is reaching 14 million people in
22,000 villages. Indian leaders and technicians
numbering in the hundreds have been brought to
the United States for specialized training. Sup-
plies and equipment are being provided farmers
who cannot afford to purchase them.

In addition, our funds are being used for direct
assistance in economic development, industrial as
well as agricultural.

Private American foundations are also playing
an important part in these efforts. The Ford and
Rockefeller Foundations are actively involved in
helping improve living standards.

Thus, many, many Americans today are work-
ing daily side by side with Indians in the funda-
mental tasks of improving the lives of India's
millions.

American private investment in India is sub-
stantial and contributes to a sounder Indian econ-
omy. Within the past year, for instance, we have
seen a multimillion dollar oil refinery started in
Bombay by an American company.

India, in turn, has much to offer us economically.
From India, we purchase large amounts of im-
portant industrial materials, including mica and
manganese. We also buy ilmenite, the ore used
in making titaniimi, and kyanite, used in manu-
facturing refractory bricks.

Outside the economic field, we find the ties of
friendship being strengthened in other ways. A
host of India's students and teachers and many
of ours are continually being exchanged. These
boys and girls and men and women, through the
experience of daily living with their hosts, con-
tribute greatly to good will.

India has a great cultural and spiritual heritage
on which we can draw. As our two countries know

596

Department of State Bulletin

each other better we can benefit more and more in
nonmaterial as well as material ways. It has be-
come a cliche to say that the West can learn as
much from the East as the East from the West, but
it is worth repeating nevertheless.

But what gives us the most hope for the future
of our relations with India is the fact that there is
no basic difference inherent in our respective
philosophies of government. India has rennbued
the sjiirit of democracy with the strength of her
own. She has given, in the life of Gandhi, a new
rallying point to all those who believe in the dig-
nity of each individual.

Both nations believe in freedom, in the individ-
ual, in his rights as an individual — in the commit-
ment of democratic government to protect those
rights. Our concept of democracy is the same.
Tlie necessity for protecting that democracy is
mutually recognized. The way is open to friendly
cooperation in efforts to build a better, more peace-
ful world.

Looking at the broad picture of our relations,
there is much more to cheer than to despair about.
So long as we do not succumb to the doubtful
luxury of carping and exasperation, the future is
a bright one.

We have, I believe, many areas of supreme im-
portance in which India and the United States are
in agreement. The chief task is to build upon
those areas and to strengthen them.

We do not expect to agree on every issue. There
are bound to be differences of opinion between two
democratic states, but the basic principles exist on
which we agree.

Let me repeat what I have already said : Wlaat
the Government of the United States wants above
all is a free, independent, and democratic India.
If it is an India which also agrees with the Ameri-
can outlook on international affairs, so much the
better. We shall certainly work hard to reconcile
our respective points of view, but it is the freedom,
the independence, and the democracy of India
that we consider essential and that we shall strive
to support to the best of our ability.

FOA Projects To Aid India

River Development Project

The United States will contribute $11 million
toward tlie construction of a new major river-
development project, the Riband Dam, in the
north Indian state of Uttar Pradesh.

The Foreign Operations Administration on
April 2 reported the signing in New Delhi of an
agreement calling for U.S. support to the project,
which will cost an estimated $70 million. The
Indian Government will contribute the equivalent
of $59 million to the construction costs.

Expected to be completed in 12 years, Rihand
Dam would have an initial installed electrical
capacity of 120,000 kilowatts and ultimate in-
stalled capacity of twice that much. A large block
of the power will be utilized, according to the plan,
for pumping water from possibly 4,000 feet deep
irrigation wells irrigating from a million to a
million and a half acres of land. In addition,
water from the 180 square mile reservoir would
irrigate 400,000 to 500,000 acres.

The area to be served by the Rihand project has
a population of about 25 million persons and is
extremely undeveloped in both agriculture and
industry. Development of such basic industries
as manufacture of cement, chemical fertilizers,
aluminvun, porcelain, and paper, for which abun-
dant raw materials are available in the area, awaits
a power source such as Rihand would supply.

Establishment of Training Centers

Two training centers to instruct Indian person-
nel in the operation and maintenance of heavy
earth-moving and construction equipment will be
set up in India as part of the technical cooperation
program, the Foreign Operations Administration
announced on March 24.

The training centers will be established in con-
junction with multipurpose river development
projects at Chambal and Hirakud. The training
course will run about 12 months and each center
will be designed to train at least 40 operators and
mechanics a year.

The United States is contributing $460,000 to
the progi-am and the Indian Government will con-
tribute 1,402,000 rupees (equivalent to about
$294,420). FoA will also supply technicians to
take part in the instruction.

Locust Control

The FoA announced on March 18 that India's
age-old fight against swarms of desert locusts will
be supported by additional mobile equipment
financed under the U. S. technical cooperation
program.

Extending a 1952 locust-control agreement be-
tween the United States and India, Foa agreed to
finance the purchase of $80,000 worth of addi-
tional equipment and India agreed to make a con-
tribution of 460,000 rupees (equivalent to about
$96,600) to the program. During the last 2 years,
the United States contributed $451,000 and India
the equivalent of $156,000 to the locust control
program.

The control program, which was inaugurated in
1951 when the Middle East and South Asia were
threatened by a severe locust plague, has been very
successful in reducing damage. In 1953 the
damage from locusts was insignificant because of
the successful cooperation of the governments of
the countries threatened by locusts, agencies of the

April ?9, 7954

597

U.S. Government, and the Food and Agriculture
Organization of the United Nations.

Malaria Control

Malaria control protection will be extended to
a total of 125 million people in India as a result of
the signing of a new agreement under the Indo-
American technical cooperation program, the Foa
announced on March 10.

Under the agreement signed in New Delhi by
representatives of the Foa and the Government of
India, 35 additional malaria units will be estab-
lished in India. This will bring to 125 the nimiber
of imits established since 1952 under the joint pro-
gram and malaria coverage of 125 million persons
by March 31, 1955.

The United States is contributing $4,660,000 to
the latest phase of the program to finance the pur-
chase of 5,730 tons of DDT, 35 petrol-driven
spraying units, 183 vehicles and 2,714 hand spray-
ers and stirrup pumps. The Indian contribution is
22,533,000 rupees (equivalent to about $4,720,000) .

The malaria-control program is the major
health effort under the Indo- American program.
It is aimed at reducing 100 million cases of malaria
a year to one million cases or less. Through the
nationwide campaign, it is planned to reduce the
incidence of malaria to the point where normal
control measures can keep it from ever again be-
coming a serious health or economic problem.

Fukuryu Maru Accident

Press release 187 dated April 9

Following is the text of a statement issued at
Tokyo on April 9 hy John M. Allison, American
Ambassador to Japan:

On the occasion of the departure from Tokyo of
Mr. Merrill Eisenbud, Director of the Health and
Safety laboratory of the Atomic Energy Com-
mission, and of Dr. John Morton, Director of the
Atomic Bomb Casualty Commission and his staff
of associate physicians, I wish to express again in
the name of the United States Government our
deep regret for the unfortunate accident to the
Fukuryu Maru and our continuing concern for
the recovery and well-being of its hospitalized
crewmen. I have already announced the inten-
tion of the United States Government both to re-
imburse the Japanese Government for interim
financial assistance to the patients and their fam-
ilies and, for the future, to take all possible meas-
ures to prevent any recurrence of this most re-
grettable accident.

I have thanked Dr. Morton and Mr. Eisenbud
for their important contributions to the resolu-
tion of many of the problems wliich arose after this
most regrettable accident and I should like to re-

cord my own appreciation of what, in cooperation
with officials and scientists of the Japanese Gov-
ernment, they have been able to accomplish since
their arrival here.

Mr. Eisenbud and Dr. Morton and liis staff were
directed to come to Tokyo by the United States
Government, immediately on notification of the
mishap to the Fukuryu Maru. Their primary
purpose was to assist, as consultants to the Japa-
nese doctors in charge of the case, in the recovery
of the twenty-three patients. They were also to
offer to the Japanese Government specialists in
charge of the public health and fishing industry
aspects of the case their long professional experi-
ence in the evaluation of radioactive hazards. Dr.
Morton and his staff arrived in Tokyo on March
18, Mr. Eisenbud on March 22. Since that time,
the following results have been accomplished :

(1) The examinations they have made in Japan
have corroborated completely the results of longer
and more detailed studies in the continental United
States which have established the groundlessness
of fears concerning the long-range contamination
of the atmosphere or the ocean or of water or air
currents. Mr. Eisenbud has made the results of
his examinations and of these longer studies avail-
able to the Japanese scientists.

Mr. Eisenbud, in behalf of the Atomic Energy
Commission, has offered to provide the Japanese
scientists, sliould they so desire, equipment used
in the United States for routine monitorings of the
daily depositions of radioactive dust from all
sources.

(2) Mr. Eisenbud has communicated to his
Japanese colleagues the results of American
studies concerning the fate of radioactive debris
originating from the detonation of nuclear devices
in the Marshall Islands. These studies formed
the basis for a public statement made on March
24 conveying assurances that radioactivity is not
being carried by oceanic currents beyond the im-
mediate vicinity of the test area. Traces of radio-
activity can be expected to be reported from time
to time but only in harmless amounts that will
barely be detectable against the ever-present back-
ground of natural radioactivity.

(3) In recognition of the importance of marine
ecology to the Japanese economy, Mr. Eisenbud
has conveyed, through Dr. Kobayashi of the Na-
tional Institute of Health and Chairman of the
Atom Bomb Injury Investigation Committee of
Japan, the willingness of the United States Atomic
Energy Commission to offer financial support to
Japanese scientists who wish to continue their in-
vestigations in this field.

(4) In cooperation with Japanese scientists,
they have established the fact that no commercial
hazard exists to the Japanese tuna industry. They
were requested by the Japanese authorities to
recommend a monitoring procedure for export
tuna and did so as a precautionary measure. I

598

Department of Sfafe Bulletin

have been gratified by the statement of the United
States Food and Drug Administration that there
is no basis for apprehension over the possibility
of contaminated tuna from Japan. I am informed
through commercial sources in Japan that from
their side the problem is now resolved and that
the Japanese tuna industry has for some time
been operating on a normal basis.

(5) In cooperation with the Japanese doctors in
charge of the patients, they have established the
presumption that the radioactive constituents of
the ash which fell on the Fukuryu Maru have not
been deposited in significant amounts in the tis-
sues of the hospitalized fishermen. Immediately
upon his arrival in Japan Mr. Eisenbud discussed
the subject in detail with Japanese investigators
and urged that the question be removed from the
realm of speculation by radio chemical analysis
of the urine of the fishermen. This technique,
facilities for which did not exist in Japan, per-
mits a quantitative evaluation of the extent to
which intratissue deposits of radio-chemicals have
occurred. IMr. Eisenbud offered to undertake this
analysis for all of the 23 patients. Two speci-
mens of urine were submitted to Mr. Eisenbud who
arranged for them to be flown to the United
States for immediate analysis. Five subsequent
samples have been received and are now being
analyzed in the United States. Their results will
be promptly communicated. The results of the
analyses which have been completed have already
been reported to Dr. Kobayashi. It has been de-

termined that the excretion of the radio-chemicals
is of such a low order as to assure that the deposits
of radio-isotopes in the tissues of these two patients
give no medical basis for concern.

This, of course, applies only to the possibility,
originally raised, that radioactive materials in the
tissue of the men would produce injury in the
years to come. There remains the injury pro-
duced by external radiation from the ash. I un-
derstand that the fishermen are now convalescing
from the effects of this initial injury. The
American specialists have not been able to make
appropriate suggestions for action including ther-
apy with regard to the twenty-three patients, for
the reason that it has not thus far been possible
to afford them an opportunity to make the neces-
sary prior examinations.

I have informed the Japanese Government that
if the Japanese doctors in charge of the twenty-
three patients would like to have Dr. Morton leave
a physician from his staff in Tokyo to relay re-
ports on the condition of the patients as may sub-
sequently be communicated to him and to maintain
an immediate channel to Dr. Morton and his staff,
such arrangements will be made.

I wish to emphasize again, in behalf of the
United States Government, our readiness to do
anything within our power to promote the re-
covery of the twenty-three patients and to extend
any assistance needed for the resolution of the
problems that have arisen in the wake of this most
unfortunate and regrettable accident.

New Trends in American Immigration

hy Edward S. Maney
Director of the Visa Office ^

The National Council on Naturalization and
Citizenship, I understand, is primarily concerned
with the problems of the immigrant who wishes
to integrate into the American community and
to become a citizen of the United States. From
this point of view the members of the Council
will be interested in certain changes which the
Immigration and Nationality Act^ has brought
about in the immigration field and which will be

' Address made before the National Council on Naturali-
zation and Citizenship, New York, N. Y., on Apr. 2 (press
release 170, dated Apr. 1).

' For an article on the act, see Btjlletin of Feb. 2, 1953,
p. 195, and Feb. 9, 1953, p. 232.

reflected in the composition of the group that
makes up our new immigrants.

The Immigration and Nationality Act, which
was enacted on June 27, 1952, has now been in
operation for more than 15 months. Almost un-
noticed by the general public, this act has brought
about a number of changes which have proven
beneficial to those who wish to come to the United
States and have in many ways facilitated the ad-
ministration of the law.

Before I discuss with you some of these changes,
let me remind you that the basic concepts of the
Immigration and Nationality Act are not differ-
ent from those which have been the basis of Ameri-
can immigration policy ever since there has been

April 19, 1954

599

a limitation on the number of immigrants to the
United States. I am discussing these basic con-
cepts not only because they have remained un-
changed but also because they relate to American
immigration policy, which is the responsibility of
the Congress of the United States. I will discuss
with you changes the new law has brought about
and which have become most obvious to us in the
Visa Office of the Department of State durmg
these last 15 months.

One of the most troublesome problems consular
officers in the field and we in the Department of
State had to deal with before the new law became
effective was that of an American citizen who had
married a woman of Asian ancestry and discov-
ered only too late that under our laws then in
existence he had only the choice between his coun-
try and his wife since our laws, with few excep-
tions, then did not permit the immigration of
persons of Asian stock.

One of the most important changes the new law
has brought about is the elimination of race as a
bar to immigration. Alien wives and husbands of
American citizens and alien children of American
citizens are now eligible for immigi'ation and en-
titled to nonquota status irrespective of their race.
While it is true that the quotas accorded to Asian
peoples are minimum quotas, it must be borne in
mind that the volume of immigration from a given
area is composed of both quota and nonquota im-
migi-ants and the latter group of course may ex-
ceed without limit the numerical limitations placed
on quota immigi-ants. This is best illustrated by
the fact that during the last fiscal year 1,043 Chi-
nese and 2,489 Japanese came to the United States
as immigi'ants, although Japan has a quota of only
185 and only 105 quota numbers are available to
Chinese persons. In evaluating these data it must
be recalled that racial bars to immigration were
not lowered until the second half of the 1953 fiscal
year.

Changes in Quota Chargeability

Another important change which the new law
has brought about is a general relaxation of the
method by which the quota chargeability of an
alien is determined. The basic rule remains un-
changed that the quota of an alien is determined
by his place of birth. While formerly only an
alien wife chargeable to an oversubscribed quota
could be charged to the more favorable quota of
her accompanying husband, under the new law a
husband as well as a wife may be charged to the
more favorable quota of the accompanying spouse.
For example, the Greek husband of an English
woman may be charged to the quota of Great
Britain.

Similarly, a child may now be charged to his
own quota, the quota of his accompanying father
or mother, whichever of the three is most favor-

able. In the past a child mandatorily had to be
charged to the quota of the accompanying father.
This relaxation of the law which may seem unim-
portant, I assure you, has brought relief to many
an immigrant family by giving them an opportu-
nity to come to the United States together rather
than choosing between separation or waiting to-
gether abroad.

Another change relating to the quota charge-
ability has brought relief for many hardship cases
for which there was no satisfactory solution under
the old law. In a considerable number of cases
prospective immigrants born in countries with
small and oversubscribed quotas had to be given
the discouraging information that they had to an-
ticipate an indefinite waiting period imder the
quota of their countiy of birth although they had
no tie to the country of their birth.

The typical example is that of an alien born in
India while his British parents were stationed
there as missionaries or that of a Swiss person
born in Egypt whose father was stationed there
as a consular officer of his country. The law now
permits that an alien who was born in a country
in which neither of his parents was born and in
which neither of his parents had a residence at the
time of such alien's birth may be charged to the
quota of either parent. In other words, to use our
examples, the alien born in India may be charged
to the British quota to which his parents would
have been chargeable, and the alien who was born
as son of the Swiss Consul in Egypt may be
charged to the quota of Switzerland.

Fuller use of existing quotas is made possible
under the new law by permitting that any portion
of a given quota not used during the first 10
months of a quota year may be used without
numerical limitation during May and June, that
is, the last 2 months of the quota year. The
restriction on the use of quotas to 10 percent of
each quota per month which now is applicable
only during the first 10 months applied to every
month of the quota year under the old law. Thus,
quota numbers were lost if a demand for immigra-
tion visas in excess of 20 percent developed in
May and June of a year under a quota which had
not been utilized up to 80 percent during the first
10 months of the same quota year.

The prohibition against the immigration of
manual labor, the so-called "contract labor pro-
vision" of the old law, by and large restricted im-
migration to the United States to relatives and
close friends of American citizens and of perma-
nent resident aliens. Aliens with good skills and
many of them needed in this country but lacking
family or friendship ties as a rule could not come
to this country as they were unable to secure an
acceptable affidavit of support as evidence that
they were not likely to become public charges.
Thus real "new-seed iimnigration" had become
unknown in this coimtry except for those immi-

600

Department of State Bulletin

grants who benefited under the Displaced Persons
Act of 1948.

This situation has been drastically changed by
two provisions of the new law. On one hand the
out-dated and inflexible contract labor law was
eliminated. Now an alien is permitted to make
arrangements for his employment before he comes
to the United States and may submit evidence
about his employment to show that he is not likely
to become a public charge. Only if the Secretary
of Labor certifies that there exists an oversupply
of a given skill in a given locality of the United
States will the immigration of aliens be barred
who possess such skill and who are coming to this
locality. No such finding has so far been made
by the Secretary of Labor.

The other provision of the new law which is
helping the "new-seed immigrant" as well as
American industry, business and cultural interests
is tlie one giving a first claim to one-half of the
quota of each country to aliens whose services are
needed urgently in the United States because of
their high education, technical training, special-
ized experience, or exceptional ability and to their
spouses and children.

The provision permitting immigrants to have
employment before coming to the United States
eventually will make itself felt also in the distribu-
tion of immigrants throughout the United States.
As long as immigrants had to rely for their im-
migration on affidavits of support from relatives
and friends in this country, the traditional trend
of the immigrant movement continued to be to
urban areas where there was already considerable
immigrant settlement. Now it is to be expected
that the settlement of new immigrants in the
United States will not only be influenced by their
tendency to go where they have friends or rela-
tives but that it will be guided by job opportunities
throughout the country.

Security Provisions

Some misunderstanding seems to exist in the
mind of the general public as to the effect the new
law has had on the security provisions applicable
to immigrants. The opinion seems to be wide-
spread that the new law is more exacting in that
resjDect. Actually the reverse is true.

For all practicable purposes the new law has
reenacted the security provisions which had been
part of the immigration laws since tlie passage in
1950 of the Internal Security Act. One significant
change, however, has taken place. In the past, and
ever since 1940, not only present but also former
members of proscribed organizations were ex-
cluded from admission into the United States as
immigrants. For example, an alien who in his
youth some 20 or 30 years ago was a member of
the Communist Party was still ineligible to re-
ceive a visa regardless of the fact that long since
he had given up his early political associations and

April 79, J 954

had since become an outspoken fighter against
communism.

The new law contains an escape clause for for-
rner voluntary members of proscribed organiza-
tions, a fact which has been given little if any
publicity. The defector clause contained in the
new law permits the issuance of a visa to a former
voluntary member of a proscribed organization if
the alien since the termination of his membership
and for at least 5 years before the date of his visa
application has been actively opposed to the prin-
ciples and ideology of the proscribed organization
of wliicli he was a member.

This provision of law has made it possible to
admit to the United States as immigrants a number
of aliens whose record of the past years has justi-
fied that the United States show forgiveness for
past political association and has thus enabled
us at least indirectly to encourage future
defections.

After this trial period of 15 months we in the
Visa Office can say that the new law as far as it
affects the visa function of the Department of
State constitutes a considerable improvement over
the earlier laws. I hope my brief presentation has
shown you that the new law tends to keep families
united in migration, makes tlie use of quotas more
flexible, and facilitates the admission of "new-
seed immigrants." It gives due recognition to the
need in the United States for certain skills, pro-
fessional knowledge, and ability. It also opens
the door to those who in the past were permanently
barred for reasons of race or as a result of former
and long past political affiliations.

I know that some of you are critical of the basic
philosophy of our immigration laws, particularly
its national-origins quota system, which actually
goes back to the Immigration Act of 1924. In all
fairness to the new law, this criticism I think
should be divorced from a recognition of the fact
that the new law has bi-ought many important im-
provements over the old law, particularly in rela-
tion to its treatment of immigrants.

In their administration, laws can be interpreted
literally and restrictively. On the other hand,
they can be given a reasonable and humane inter-
pretation. I want you to know that ever since
the Immigration and Nationality Act has become
effective we in tlie Visa Office have made every
effort, without doing violence to the plain intent
of the law, to interpret it reasonably and hu-
manely. In our frequent discussions with the
congressional committees on questions relating to
the interpretation and administration of the Law,
we have found that it is also their desire to see
the law administered in a commonsense manner.

I should like to use this opportunity to express
my deep appreciation of the fine cooperation we
in the Department of State have enjoyed in our
close work with the Immigration and Naturaliza-
tion Service. Ever since the new law was enacted,
we have been meeting regularly with representa-

601

fives of the Service and in close cooperation have
worked out the various problems which naturally
would arise in the implementation of a new stat-
ute. I am glad to say that we have been able to
work out each and every problem which has come
to our attention during these first 15 months.
Although I am not speaking here for the Im-

migration and Naturalization Service, I am cer-
tain I can say both for that Service and for the
Department of State that we have done everything
and will continue to do everything possible to
interpret and administer the immigration laws
consistent with the intent of Congress and in the
best interest of the United States.

Recommendations Concerning U.S. Foreign Economic Policy

Message of the President to the Congress '

I submit herewith for the consideration of the
Congress recommendations concerning the foreign
economic policy of the Tnited States.

Due to the urgency and significance of our prob-
lems in this area, I previously recommended, and
the Congress approved, the establishment of the
Commission on Foreign Economic Policy. Its
membership, consisting of seventeen elected offi-
cials and private citizens, was drawn from all parts
of the country and represented diverse points of
view. Tlie Commission's report,- prepared in the
American tradition of full debate and vigorous
dissent, has been carefully reviewed by the various
E.KCcutive Departments of the Govermnent and
forms the basis for the program I submit in this
message.

Before the Commission began its deliberations
I said to its members, ''I commend to you an atti-
tude both realistic and bold. Above all, I urge you
to follow one guiding principle: What is best in
the national interest." ^

The national interest in the field of foreign
economic policy is clear. It is to obtain, in a man-
ner that is consistent with our national security
and profitable and equitable for all, the highest
possible level of trade and the most efficient use of
capital and resources. That this would also
strengthen our military allies adds urgency.
Tiieir strength is of critical importance to the se-
curity of our country.

Great mutual advantages to buyer and seller,
to producer and consumer, to investor and to the
community where investment is made, accrue from
high levels of trade and investment. They accrue
no less in trade from nation to nation than in
trade from community to community within a
single country. The internal strength of the

' H. Doc. 360, S3d Cong., 2d sess. ; transmitted Mar. 30.
' For excerpts, see Bulletin of Feb. 8, 1954, p. 187.
" IhiA., Oct. 5, 1953, p. 450.

American economy has evolved from such a system
of mutual advantage.

In the press of other problems and in the ha.sfe
to meet emergencies, this Nation — and many other
nations of the free world — have all too often lost
sight of this central fact. AVorldwide depression
and wars, inflation and resultant economic dislo-
cations, have left a sorry heritage: a patchwork of
temporary expedients and a host of restrictions,
rigidities, interferences, and barriers which seri-
ously inhibit the expansion of international trade.
Thus are impeded the very foi'ces which make for
increased production, employment, and incomes.

The tasks of repairing the physical damage
caused by the catastrophe of war have been sub-
stantially achieved. The creation of an adequate
system of defense for the free world is well ad-
vanced. Most of the countries which suffered the
ravages of war have made remarkable headway
toward financial stability and increased produc-
tion. Tiieir own efforts have been greatly aided
by our assistance, and yet, despite this recovery,
we and other free nations are still severely limited
by file persistence of uneconomic, manmade bar-
rier's to mutual trade and the flow of funds among
us.

Together we and our friends abroad must work
at the task of lowering the unjustifiable barriers —
not all at once but gradually and with full regard
for our own interests. In this effort, the United
States must take the initiative and, in doing so,
make clear to the rest of the world that we expect
them to follow our lead.

Many foreign restrictions have been imposed
as a consequence of the so-called "dollar gap."
This phrase has become the symbol of the failure
of the free world to find a lasting solution to the
imbalance of international payments. We should
no longer fill it by major grants to enable other
nations to secure what they need but cannot buy.
Our aim must not be to fill the dollar gap, but

602

Department of State Bulletin

rather to help close it. Our best interest dictates
that the dollar gap be closed by raising the level
of trade and investment.

The United States stands ready and able to
produce and sell more than the rest of the world
can buy from us. The inability of many foreign
countries to buy our goods in the volume we would
like to sell does not arise from any lack of desire
for these goods. Such is far from the case. In-
stead it arises out of an inability of these nations
to pay — in dollars — for the volume we have to
sell.

Dollar grants are no lasting solution to this
impasse.

The solution is a higher level of two-way trade.
Thus we can sell and receive payment for our
exports and have an increasing volume of invest-
ment abroad to assist economic development
overseas and yield returns to us. Greater free-
dom from restrictions and controls and the in-
creased efficiencies which arise from expanding
markets and the freer play of economic forces are
essential to the attainment of this higher trade
level.

Failure so to move will directly threaten our
domestic economy, for it will doom our efforts to
find ways by which others, through their own ef-
forts, can buy our goods. The only practicable al-
ternative is to reduce exports. Our farms would
have to sell less, since the products of 40 million
acres, amounting to 10 to 12 percent of our agri-
culture, would have to find their market outside
our own country. Moreover, if their export mar-
kets were curtailed, American factories now sell-
ing their products throughout the world would
have to reduce employment. It is a very impor-
tant fact that over 4 million American workers
depend on international trade for their employ-
ment.

Beyond our economic interest, the solidarity
of the free world and the capacity of the free
world to deal with those who would destroy it
are threatened by continued mibalanced trade
relationships — the inability of nations to sell as
much as they desire to buy. By moving boldly to
correct the present imbalance, we shall support
and increase the level of our exports of both man-
ufactured and agricultural products. We shall,
at the same time, increase the economic strength of
our allies. Thus shall we enhance our own military
security by strengthening our friends abroad.
Thus shall we assure those sources of imports that
supplement our domestic production and are vital
to our defense. Thus shall we raise our standard
of living and aid in the development of a better
world for all of us and our children.

Tariffs

I am convinced that the gradual and selective
revision of our tariffs, through the tested method
of negotiation with other nations, is an essential

ingi'edient of the continuing growth of our do-
mestic economy. An expression of our willing-
ness to negotiate further will offer needed leader-
ship toward the reduction of trade and payments
barriers that limit markets for our goods through-
out the world.

The Commission on Foreign Economic Policy
recommended a three-year extension of the Trade
Agreements Act with amendments to authorize:

a. Eeduction, pursuant to trade agreement nego-
tiation, of existing tariff rates on commodi-
ties selected for such negotiations by not
more than 5 percent of present rates in each
of the 3 years of the new act;

b. Reduction, by not more than one-half over a
3-year period, of tariffs in effect on Janu-
ary 1, 1945, on products which are not being
imported or which are being imported only
in negligible volume; and

c. Reduction, over a 3-year period, pursuant to
trade agreement negotiation, to 50 percent
ad valorem, or its equivalent, of any rate in
excess of 50 percent ad valorem, or its
equivalent.

I have approved these recommendations of the
Commission and urge their adoption by the Con-
gress. I may also recommend special pro-
visions for negotiation with Japan in view of the
economic problems of that country.

The foregoing authority does not contemplate
across-the-board tariff reductions. The peril
point and escape clause procedures would, of
course, be preserved, and the three proposed types
of rate reduction would not be cumulative. Tariff
reductions would be made selectively on specific
commodities, and only after notice and hearings
in accordance with past practice. This would
represent our part in the gradual and careful ap-
proach to the whole problem of improved trade
which the world so urgently needs. No sudden,
sharp, or widespread adjustments within our econ-
omy would be involved.

These escape clause and peril point provisions
of our tariff legislation are designed to mitigate
injury to our domestic producers from tariff re-
ductions. "Wlienever recourse is had to these pro-
visions, I shall carefully consider the findings and
recommendations of the Tariff Commission. My
responsibilities for the welfare of the Nation re-
quire that I continue to base my decisions at times
on In-oader grounds than the Tariff Connnission
is empowered to consider. The Commission on
Foreign Economic Policy supports this position.

I have ap))roved the Commission's recommen-
dations that the United States withhold reductions
in tariffs on ])ro(lucts made by workers receiving
wages which are substandard in the exjiorting
country. This policy shall be placed in effect. I
have also approved the Commission's recommen-
dations concerning raising of labor standards

April ?9, 1954

603

through consultative procedures and cooperation
in international conferences such as those spon-
sored by the International Labor Organization.

These recommendations for renewal and amend-
ment of the Trade Agreements Act are based on
the plain truth that if we wish to sell abroad we
must buy abroad.

The General Agreement on Tariffs and Trade

Since 1948, virtually all the major trading na-
tions of the world, including the United States,
have become parties to a General Agreement on
Tariffs and Trade. This agreement has been the
principal arrangement by which we in the United
States have sought to cari-y out the provisions and
purposes of the Trade Agreements Act.

The Commission on Foreign Economic Policy
has recommended that the United States rene-
gotiate the organizational i^rovisions of the agi-ee-
ment, so that the contracting parties acting
collectively would confine their functions to
sponsoring multilateral trade negotiations, recom-
mending broad trade policies for individual con-
sideration by the legislative or other appropriate
authorities in the various countries, and providing
a forum for consultation regarding trade disputes.

I shall act promptly upon this recommendation.
At the same time, I shall siiggest to other con-
tracting parties revisions of the substantive pro-
visions of the agreement to provide a simpler,
stronger instrument contributing more effectively
to the development of a workable system of world
trade. When the organizational provisions of the
agreement have been renegotiated, they will be
submitted to the Congress for its approval.

Customs Administration and Procedure

The problems of tariff classification, of proper
valuation of imported articles and of procedures
for administering the customs are complex and
perplexing. Over the years these pi-oblems have
grown to the point where they now constitute an
unwarranted and unintended burden on trade.

The United States may be no worse in this re-
gard than many other nations, but good business
practice alone is sufficient to require:

a. Simplification of commodity definitions, clas-
sifications, and rate structure ;

b. Improvement in the methods of valuation of
imports; and

c. Establishment of more efficient procedures
for customs administration.

To this end I shall propose legislation providing
for the simplification of the commodity definitions
and rate structures in the Tariff Act, after a study
by the Tariff Commission, and subject to appro-
priate standards to be established by the Congress.
Such legislation should also jirovide for a better

method of classification of articles not enumerated
in the tariff schedules, and for such improvement
in the statutes governing the administration of
customs procedures as can be made at this time.
In this connection I am directing the Department
of the Treasury to keep customs procedures under
continuous review and to report to the Congi'ess
amiually on the difficulties and delays in processing
goods through Customs, together with recommen-
dations for action to eliminate such obstructions.
I further recommend that the antidumping law
and procedures under it be changed so far as nec-
essary to permit speedier and more efficient dis-
posal of cases and to prevent undue interference
with trade during investigation of suspected
dumping.

To provide an improved basis for customs valu-
ations I urge adoption of the Treasury's valuation
proposals. These are embodied in H. R. 6584,
which has already been passed by the House oi
Representatives.

United States investment Abroad

An increased flow of United States investment
abroad could contribute significantly to the needed
expansion of international trade. It also could
help maintain a high level of economic activity and
employment in the United States. Further, such
investment contributes to the development abroad
of primary resources needed to meet our own ever-
increasing needs even while it helps to strengthen
the economies of foreign countries. In view of the
gi-eat importance of private investment to our
foreign economic policy, I emphasize the necessity
for passage of the administration tax bill already
recommended to you and already advanced in your
considerations which provides for:

a. Taxation of business income from foreign
subsidiaries or from segregated foreign
branches which operate and elect to be taxed
as subsidiaries at a rate 14 percentage points
lower than the regular corporate rate ;

b. Broadening the definition of foreign taxes

which may be credited against the United
States income tax to include any tax, which
is the principal foi"m of taxation on business
in a country, except turnover, general sales
taxes or excise, and social security taxes ;

c. Removing of the overall limitation on for-
eign tax credits; and

d. Permitting regulated investment companies
concentrating on foreign investment to pass
on to their stockholders the credit for for-
eign taxes which would be available on
direct investment.

Further to encourage the flow of private invest-
ment abroad, we shall give full diplomatic sup-
port, through our activities here and through our
missions and representatives in the field, to the

604

Department of State Bulletin

acceptance and understanding by other nations
of the prerequisites for the attraction of private
foreign investment. We shall continue to use the
treaty approach to establish common rules for the
fair treatment of foreign investment.

In connection with legislation authorizing the
mutual security program, I suggest that the Con-
gress consider the desirability of broadening the
existing authority to guarantee against losses on
new investment abroad, so as to cover losses caused
by war, revolution, and insurrection.

The Commission has pointed out that uncer-
tainty as to the application of United States anti-
trust laws to the operations of American firms
abroad is a deterrent to foreign investment. It
recommended that our antitrust laws be restated
in a manner which would clearly acknowledge the
right of each country to regulate trade within its
own borders. At the same time, the Commission
insisted that it should be made clear that foreign
laws or established business practices which en-
courage restrictive price, production, or marketing
arrangements will limit the willingness of United
States businessmen to invest abroad and will re-
duce the benefits of such investment to the
economies of the host countries.

I have requested the Department of Justice to
consider this recommendation in connection with
its current study of the antitrust laws.

Buy American Legislation

At present certain of our laws require that, in
specified Federal or federally financed j^irocnre-
ment, preference be given to domestic firms over
foreign bidders. Except where considerations of
national security, persistent and substantial un-
employment, or encouragement of small business
require otherwise, I agree with the Commission
that it is improper policy, unbusinesslike proce-
dure, and unfair to the taxpayer for the Govern-
ment to pay a premium on its purchases.

I request, therefore, that legislative authority
be provided to exempt from the provisions of this
legislation the bidders from nations that treat
our bidders on an equal basis with their own na-
tionals. Meanwhile, the executive branch is
clai'ifying the application of these preference
principles to Government procurement. It will
limit the price differential favoring domestic pro-
ducers over foreign bidders to a reasonable percent,
dependent upon the circumstances over and above
whatever tariffs may apply. Discretionary au-
thority, however, must be continued to permit spe-
cial consideration in Government procurement for
the requirements of national security, for the
problems of small business, and of areas where
persistent and substantial unemployment exists.

we are to satisfy the ever-increasing appetite of
an expanding economy and at the same time main-
tain an adequate defense posture. We must rec-
ognize, however, that it is not possible for this
Nation, or any other nation, to produce enough
of every metal and mineral needed by modern
industry. These materials are not evenly dis-
tributed throughout the world. We have to
depend on one another. Our foreign economic
policies, therefore, must encourage the relatively
easy flow of these materials in international trade.

The Commission has made two sets of recom-
mendations which I believe will materially assist
in achieving an orderly expansion of mineral
production both here and abroad.

The first is that the United States Government
should make a constructive contribution toward
greater stability of world prices of raw materials
by moderating or relaxing impediments to inter-
national trade, by encouraging diversification of
foreign economies, by avoiding procurement prac-
tices which disturb world prices, by consultation
with other nations, and by tempering the fluctua-
tions in our own economy.

The second calls for increased encouragement of
investment in overseas production by our citizens
and the nationals of other countries.

I heartily endorse these recommendations.

The Commission also recommended that do-
mestic sources for raw materials required for mil-
itary purposes should be assured by direct means
and not by tariffs and impoi't quotas. I believe
that normally this is sound.

However, I have appointed a special Cabinet
committee which is now surveying the whole field
of our minerals policy and have drawn their at-
tention to these recommendations.

Agriculture

Perliaps no sector of our economy has a greater
stake in foreign trade than American agriculture.
In recent years, for example, one-third of our
wheat, forty percent of our cotton and rice, and
one- fourth of our tobacco and soybeans have been
exported. It is highly important to maintain
foreign markets for our agricultural products.

Any program designed to serve the interests
of American agriculture must take due account
of the necessity for export markets. Put in the
words of the Commission, "It is necessary to har-
monize our agricultural and foreign economic
policies without sacrificing the sound objectives
of either." I am convinced such reconciliation is
possible. Acceptance of the recommendations in
my agricultural message of January 11 will, I
feel certain, help accomplish this objective.

Raw Materials

This country is blessed with abundant mineral
resources, but we must make the most of them if

Merchant Marine

With respect to our ocean shipping, we must
have a merchant marine adequate to our defense

April 19, 7954

605

requirements. I subscribe to the principle that
such support of our mercliant fleet as is required
for that purpose should be ]>rovided by direct
means to the greatest possible extent. Such a
policy, however, requires a careful analysis of
the means available for providing direct support,
its possible effects on foreign flag vessel carryings,
and its total costs before a specific pi'ogram can
be recommended.

The Department of Commerce has already
studied this problem at length. Its findings will
be further reviewed within the Executive Branch
in order to develop specific reconunendations to
transmit to the next session of the Congress, in
addition to the proposals submitted by the Execu-
tive Branch that are now before the Congress.

International Travel

International travel has cultural and social im-
portance in the free world. It also has economic
significance. Foreign travel by Americans is a
substantial source of dollars for many countries,
enabling them to pay for what we sell them.

While the promotion of toui-ism is primarily a
responsibility of the countries which welcome vis-
itors, and is a fmictiou for private enterprise,
there are some specific governmental actions which
can be helpful. For example, there is H.R. 8:^52
which increases the duty-free allowance for
tourists from $.500 to $1,000, exercisable every 6
months. I recommen<l its passage. From time
to time I may have other recommendations for
legislative action to stimulate travel.

Meanwhile, in the executive branch, I shall
instruct the appropriate agencies and depart-
ments, at home and abroad, to consider how they
can facilitate international travel. They will be
asked to take action to simplify governmental pro-
cedures relating to customs, visas, passports, ex-
change or monetary restrictions and other regu-
lations that sometimes harass the traveler.

Economic Aid and Technical Assistance

Assistance extended in the past by the United
States to other free nations has played an effective
part in strengthening the national security, de-
veloping important resources, and opening up sig-
nificant opportunities, for ourselves and for others.
It has also carried with it, in many instances.
particularly in technical cooperation and famine
relief, a deep humanitarian response by our peo-
ple. However, economic aid cannot be continued
indefinitely. We must distinguish between an
emergency and a chronic malady, between a
special case and a general rule.

I subscribe, therefore, to the principle that eco-
nomic aid on a grant basis should be terminated
as soon as possible consistent with our national
interest. In cases where support is needed to es-
tablish and equip military forces of other govern-

606

ments in the interest of our mutual defense, and
where this is beyond the economic capacity of
another country, our aid should be in the form of
grants. As recognized by the Conunission, there
may be some cases in which modest amounts of
grant aid to underdeveloped countries will im-
portantly serve the interest of security. I further
agree that in other situations where the interest
of the United States requires that dollars not
otherwise available to a country should be pro-
vided, such support to the maximum extent ap-
propriate should be in the form of loans rather
than grants.

In extending such loans, we must be cai-eful not
to interfere with the normal lending activities and
standards of the Export-Import Bank. The In-
ternational Bank is the primary institution for the
public financing of economic develoimieut. The
Export-Inqioi t Bank will consider on their merits
api)lications for the financing of development
projects, which are not being made by the Inter-
national Bank, and which are in the special in-
terest of the United States, are economically
sound, are within the capacity of the prospective
borrower to repay and within the prudent loaning
capacity of the bank.

I approve the recommendations of the Commis-
sion on Foreign Economic Policy that the United
States partici]iation in technical cooperation pro-
grams should be pressed forward vigorously.
Such programs should concentrate on providing
experts and know-how rather than large funds or
shipments of goods except for necessary demon-
stration equipment. They should not provide
cai)ital for investment but should be so admin-
istered as to fit into the programs of development
of the assisted countries and they should be re-
lated to any private or public investment likely
to be forthcoming.

Review of the requirements for the Mutual Se-
curity Program has been conducted with these
princi]>les in mind and substantial reductions in
grant aid have been made by this administration.
The legislation which I shall later propose for the
IMutvuil Security Program will reflect these
principles.

East-West Trade

In viewing the problems of other nations of the
free world, we are forced to recognize that the
economies of some of them have been weakened by
the disruption of the broad historic pattern of
trade between East and West.

Curtailment of our aid programs will increase
the pressures for resumption of such trade. A
greater exchange of peaceful goods between East
and West — that is, goods not covered by the Battle
Act nor otherwise considered strategic — so far as
it can be achieved without jeopardizing national
security, and subject to our embargo on Com-
munist China and North Korea, should not cause

Department of State Bulletin

US undue concern. I shall, of course, take appro-
priate action to ensure that our security is fully
safeguarded.

Convertibility

The Commission rightly regards positive prog-
ress toward currency convertibility as an indis-
pensable condition for a freer and healthier inter-
national trade. Steps toward enabling liolders of
foreign currencies to convert them freely into
other currencies deserve our encouragement.

The Commission has correctly observed that the
initiative and responsibility for introducing ciu'-
rency convertibility must rest with the countries
concerned. I am happy to say that such initiative
is being taken. The British and other members
of the Commonwealth of Nations have met twice,
in London and in Sydney, to consider plans for
convertibility of the pound sterling. The United
Kingdom and other important nations of Europe
have discussed their aims with us. Individually
they are taking constructive steps affecting their
own currencies. In addition, discussions among
them which are now under way in connection with
the renewal of the European Payments Union are
being largely influenced by their desire to prepare
the way for convertibility.

I have approved the Commission's recommenda-
tions for cooperation in strengthening the gold
and dollar reserves of countries which have pre-
pared themselves for convertibility by sound in-
ternal and external policies. These recommenda-
tions do not call for new action by the Congress.
Authority and procedures for this purpose already
exist. The United States will support the use of
the resources of the International Monetary Fund
as a bulwark to strengthen the currencies of coun-
tries which undertake convertibility. In addition,
a study is now being made, as suggested by the
Commission, of the possibility of standby credit,':
from the Federal Reserve System.

Conclusion

What I have outlined to you is a minimum pro-
gram which should be judged as a whole. Its
various parts are interrelated; each requires the
other.

Conceived as a whole, this program consists of
four major parts:

Aid — which we wish to curtail;
Investment — which we wish to encourage ;
Convertibility — which we wish to facilitate;

and
Trade — which we wish to expand.

I consider it essential that we achieve each of
these objectives, which we must clearly understand
are closely interlocked: As we curtail our aid, we
must help to close the dollar gap by expanding
our foreign investment and trade. This expansion
will be facilitated by a return to convertibility of

foreign currencies. The return by our friends
abroad to convertibility will be encouraged if our
trade policy leads them to expect expansion of our
foreign trade and investment.

Unless we are prepared to adopt the policies I
have recommended to expand export and import
trade and increase the flow of our capital into
foreign investment, our friends abroad may be
discouraged in their effort to reestablish a free
market for their currencies. If we fail in our
trade policy, we may fail in all. Our domestic
enqiloyment, our standard of living, our security,
ancl the solidarity of the free world — all are in-
volved.

For our own economic growth we must have
continuously expanding world markets; for our
security we require tliat our allies become eco-
nomically strong. Expanding trade is the only
adequate solution for these two pressing problems
confronting our country.

DwiGHT D. Eisenhower.

The White House,

March 30, 1954.

Current U.N. Documents:
A Selected Bibliography ^

Security Council

Letter Dated 12 March 1954 from the Representative of
Egypt Addressed to the Secretary-General. S/3186,
March 15, 1954. 24 pp. mimeo.

Exchange of Correspondence Between the Secretary-
General and the Governments of the Hashemite King-
dom of the Jordan and Israel Regarding the Convoca-
tion of a Conference Under Article XII of the General
Armistice Agreement. S/3180/Add.l, March 24, 1954.
5 pp. mimeo.

General Assembly

Nationality Including Statelessness. Third Report on the
Elimination or Reduction of Statelessness, by Roberto
Cordova, Special Rapporteur. A/CN.4/81, March 11,
1954. 49 pp. mimeo.

Sixth Report on the Regime of the High Seas, by .1. P. A.
Francois, Special Rai)porteur. A/CN.4/79, March 22,
1954. 32 pp. mimeo.

Economic and Social Council

Commission on the Status of \Von«ni : .Access of Women
to Education. (Progress reiiort prepared by United
Nations E<lucati<)nal, Scientilic and Cultural Organi-
zation.) E/CN.0/250, February 26, 1954. 66 pp.
mimeo.

Slavery. (Supplementarv report submitted by the
Secretary-General.) E/2548, February 26, 1954. 93
pp. mimeo.

'Printed materials may be seou-ed in the United States
from the International Documents Service, Columbia
University Press, 296(» I'.roadway, -New York 27, N. Y.
Other materials (mime(igrai)luMl or processinl documents)
may be consulted at certain designated lil)raries in the
Uniteil States.

April 19, 1954

607

Review of Annual ECE Economic Survey

Statement htj Winthrop G. Brown '

As my delegation was preparing our Govern-
ment's comments on the survey,^ one of my col-
leagues remarked that it was much harder to com-
ment on a good report than on a bad one.

We take great satisfaction in the fact that the
Secretariat has made our task so difficult by pro-
ducing so good a survey. If we differ here or there
from some of its conclusions or analysis, this in
no way detracts from our general appreciation of
its merits.

This year's survey is impressive for its scope,
for its selection and concentration on the major
problems of the European economy, and its pro-
vocative and original discussion of these issues.
To the skill, energy, and imagination which we
have come to take for gi-anted from tlie Secretariat
has been added an improved balance in presenta-
tion and more realistic standards of judgment.

We note with satisfaction that the survey pre-
sents a careful and comprehensive record of major
improvement in the internal and external economic
affairs of Western Europe. This year's survey
rightly emphasizes the progi-ess of tlie past year
in Western Europe, and the opportunities' for
further improvement that lie ahead.

Main Factors of Improvement

As for the progress of the past year, the survey
records that, during the course of 1953, Western
European industrial production generally im-
proved, "with some countries" showing "a con-
siderable growth in industrial production," while
still maintaining financial stability. The recovery
has been strongest in the consumer-goods indus-
tries, most notably textiles, which had given great-
est cause for concern in the previous year. The
growth of agricultural output continued, and food
rationing was progi'essively eliminated. Agricul-
tural output in Western Europe in 1952-53 reached
its peak for the postwar period, and livestock
products were at levels well above the 1934-38

'Made before the ninth session of the U.N. Economic
Commission for Europe at Geneva on Mar. 19. Mr. Brown,
Deputy to the Minister for Economic Affairs, U.S. Em-
bassy, London, was Chairman of the U. S. delegation.

' U.N. doc. E/EOE/174, February 1954.

average. While production in the metal-using in-
dustries showed some signs of hesitation, this may
have been in large measure a delayed response to
the 1952 decline in the consumer industries.

The survey rightly indicates that a more sub-
stantial expansion of production might have been
both desirable and feasible, without threatening
a renewal of inflationary pressures. It should be
emphasized, however, that the maintenance of in-
ternal financial stability is an indispensable basis
for continued future investment and expansion.
To have brought prolonged inflation so success-
fully under control has been an outstanding
achievement which might have been jeoj^ardized
by too .strong an insistence on continuous expan-
sion at all periods.

Despite these reservations, however, we would
agree with the survey on the compelling need for
further economic expansion and the forward devel-
opment of Western Europe's tremendous economic
capabilities. To the measures discussed in the
survey through which expansion should take place,
we would add and emphasize inci'eased productiv-
ity, especially advantageous as an offset to infla-
tionai-y pressur&s. The Western European coun-
tries, in recognition of the importance of this
factor, have in the past year intensified their col-
lective efforts to promote a more productive use of
available resources.

Together with the maintenance of internal sta-
bility and the recovery of production last year,
there came a marked improvement in the external
position both of Western Europe as a whole, and
of most individual countries in Western Europe.
Gold and dollar reserves rose markedly. The vol-
ume of intra-European trade expanded, and ex-
ports to the dollar area rose to record heights. As
the survey points out, the improvement in the
external position of Western Europe as a whole
contributed very greatly to an easing of the strains
in intra-European trade and payments, and per-
mitted a substantial recovery of past regressions in
the liberalization of intra-European trade. The
Geec [Organization for European Economic Co-
operation] is now seeking to lay the basis for
further advance. The survey correctly recog-
nizes the central role of the European Payments
Union in the abolition of intra-European pay-

608

Department of State Bulletin

ments barriers in its comparatively lengthy and
stimulating discussion of the development of this
organization.

The survey does not mention the considerable
progress that was also made in the relaxation of
European barriers against imports from North
America — progress which offers much hope for
improved efficiency and closer economic coopera-
tion among the major trading countries of the
world. This combination of an appreciable liber-
alization of imports from the dollar area with an
actual decline in dollar purchases is of major sig-
nificance. It underlines the survey's view that a
structural shift in Europe's dollar position has
occurred which "has clearly been important."

Main Threats to Continued Expansion

The survey sees two main threats to continued
economic expansion in Western Europe: First,
uncertainties as to the future course of the U.S.
economy; and, secondly, what the survey sees as
the temporary character of some of the major
factors underlying the improvement in the ex-
ternal position of Western Europe. It appears to
be these two factors which chiefly undei-lie the
survey's judginent that governments may well
"hesitate to undertake really expansive policies of
any kind because of two fears, those of inflation
and of balance of payments difficulties."

We consider the "special, and sometimes clearly
temporary, features" which are said to underlie
the external improvement both less special and less
temporary than the survey suggests. After very
nearly 10 years of postwar experience, the high
level of business activity in the U.S. can hardly be
considered a "special" feature or a "temporary"
one. It is, of course, true that the possibility of
temporary dips in that high level cannot be ruled
out; and it is equally true that the United States
economy has for some months now been in a phase
of readjustment as a residt of the decline of inven-
tory additions and lower defense expenditures.
But this readjustment has been proceeding at a
very high level, and in an atmosphere of business
and financial confidence.

You may be sure that we in the United States
are just as anxious to maintain a high level of
economic activity as you are to have us do so.

The uncertainties of economic forecasting ai-e as
well known as the tendencies of economists to dis-
agree among themselves. It may be worth recall-
ing here, however, the remarkable degree of una-
nimity among American economists as to_ the
moderate character of the prospective readjust-
ment, and useful to note the basic factors of
strength which underlie this unanimity. The
great majority of economists agree that 1954 is
likely to be "the second-best year in American
economic history ; and few see in the present situ-
ation serious threats for the lonfjer-term future.
These views are based on the balanced character

of the postwar expansion, which has progressed
without financial or speculative excesses and with-
out undue dependence on any single source of
stimulus; on the structural changes which have
been introduced into tlie American economy over
tlie past 20 years ; and on the continuing strength
of business and consumer demand.

The outlook for consumer expenditures is fa-
vorable. Consumer savings are large and widely
distributed and the reduction of individual taxes
which has taken place and which is contemplated
should, among other factors, stimulate consumer
purchases. Demand for housing remains strong
and building activity is expected to continue at
close to the high levels of 1953. Although Federal
Govermnent expenditures will decline somewhat,
they will continue to be a strong sustaining factor
in the economy, and State and local purchases will
probably increase.

One of the most important reasons for confi-
dence in the future is the expectation that business
firms will maintain their plant and equipment
expenditures at high levels. This is a reflection
of the fact that industry generally is in a strong
financial position and has incentives to expand.
Let us be specific. You all know of the central
importance of the American automobile industry
in our economy and the sensitivity of this industry
to fluctuations in economic activity. It is a source
of much encouragement to us that this industry
is optimistic about the coming year, having an-
nounced firm plans for substantially increased
investment. Recent sales and production figures
tend to support this optimism. New car sales
in Februai-y improved by 12 percent over January,
and factory production schedules for March have
been tentatively set at 22 percent over the Febru-
ary figure.

Finally, in this review of the main factors of
strength in our economy, I should like to empha-
size the administration's determination to act
quickly and vigorously if serious recessionary
forces should develop. To quote the President's
own words: "The arsenal of weapons at the dis-
posal of the Government for maintaining economic
stability is formidable. . . . We shall not
hesitate to use any or all of these weapons as the
situation may require."

In addition to being determined to use its full
powers to combat a serious recessionai-y threat if it
should develop, the U.S. administration is also
fully aware of the international impact of even
moderate readjustments in the U.S. In a recent
statement Governor Stassen expressed the readi-
ness of the United States to consult with European
countries on this aspect of the problem. We wel-
come opportunities for such mutual consultation
and have already undertaken several such
exchanges.

Certain delegates have expressed concern at the
fact that in tlie i)ast a decline in economic ac-
tivity in the United States has resulted in a dis-

April 79, 1954

609

proportionate decline in imports. It is a cause
for satisfaction that this has not so far proved to
be true of the present readjustment.

Other Elements of Economic Situation

As for tlie other elements which are seen by
the survey as being "special" or "temporary," a
few additional comments are in order. It is prob-
ably true that the European demand for imports
was abnormally low in 1953 and that this was a
significant factor in the improvement of its trade
balance. The implication here, however, that a
rise in European imports might necessarily have
adverse effects on this trade balance requires some
qualification. As the survey points out, the level
of imports itself, through its effects on the incomes
of the countries from whicli the imports come, has
a major influence on the level of exports. This
is likely to prove an important offsetting factor to
any strain on the balance of payments as Europe's
imports grow in the future.

In this connection, the progressive elimination
of trade barriers, to which we have already re-
ferred, is especially significant. Despite tempo-
rary difficulties, encouraging progress has been
made in the past year toward the establishment of
a common market in Europe and the I'emoval of
restrictions on trade and payments. As more lib-
eralized market, trade, and payments measures
now under consideration by the Western European
countries are adopted, for both the intra-Euro-
pean sector and between Europe and world mar-
kets, these should tend to reduce production costs
in Europe, stimulate competition in the European
market, and generally encourage a more effective
use of resources.

Another temporary factor in the favorable eco-
nomic situation in Western Europe during 1953
cited by the survey was the high level of U.S. ex-
penditures abroad. The survey correctly points
out that the level of extraordinary disbursements
abroad by the United States is likely to shrink in
the future. But such shrinkage will not take back
the additions to European reserves which have
already taken place, and which will continue for
some time. And, in the meantime, tliere is a sub-
stantial margin of safety which can ease the prob-
lems of adjustment.

One other important development tends to miti-
gate the effect of the prospective decline in U.S.
aid. This factor is the high level of U.S. imports
from Europe. The survey points out that a
doubling of United States purchases from Europe
since 1950 has virtually offset the decline of eco-
nomic aid to Europe, 'it is shown that total U.S.
purchases of goods and services from Western Eu-
rope have been running at an annual rate of over
5 billion dollars, and that European exj^orts to
the United States in 1953 rose to I'ecord heights —
in contrast to a shrinkage in sales to most other
overseas markets. The survey then makes the

610

important observation that these developments
have had the result that Eurojje has had a rela-
tively stable total supply of dollars, and that the
major fluctuations in its dollar position have thus
been the results of changes in its dollars j^ayments.

This development is in part also the result of
the general process of reducing trade barriers
which has been going on in the U.S. for the past
20 years. The effective level of our tariff today
is about one-quarter of what it was in 1934. We
are importing goods at the I'ate of over III/2 bil-
lion dollars a year, I14 times by volume and 2I/2
times by value what we imported before AVorld
War II. Of that amount Ci/^ billions entered free
of any duty whatsoever. And it should be en-
couraging to other countries that the greatest
increases in the imports of the U.S. last year were
in tlie area of dutialjle imports, not duty-free im-
ports. When you add over a billion dollare for
shipping and other transportation services, plus
other purchases made abroad, you come out with
the fact that, quite aside from any dii'ect aid or
investment, the U.S. put at the disposal of the
rest of the world last year the huge sum of I6V2
billions of dollars.

You are also all aware of the money and knowl-
edge which our Government and businessmen,
whom some have referred to as "protectionist,"
have put freely at the disposal of the countries of
Western Europe to help them become more pro-
ductive and more competitive in all world markets,
includins; our own.

Randall Commission

The U.S. Government has demonstrated its
appreciation of the importance of a steadily ex-
panding world economy and the need for U.S.
initiative and leadership in moving toward this
objective. Toward this end, the President estab-
lished a Commission on Foreign Economic Policy,
pojiularly known as the Eandall Commission, to
review and recommend appropriate foreign eco-
nomic policies for the U.S. In his statement to
the organization meeting of this Commission,^ the
President said :

No group of citizens has been called to a higher mission
than the one you are setting forth today. The economic
health of our own country and that of other friendly
nations dejiends in good measure on the success of your
work. Your task is to find aceeptalile ways and means
of widening and deepening the channels of economic
intercourse between ourselves and our partners of the
free world.

As you know, the report of the Commission
now completed is advisory in nature. We con-
sider the report forms a basis for a constructive
reformulation of U.S. policy in this field. The ad-
ministration is now reviewing the findings of the
Conunission and is about to submit projjosals to

' Bulletin of Oct. 5, 1053, p. 450.

Deparfmenf of Stale Bulletin

the Congress for further developments in Ameri-
can international economic policy.^

I would not wish to leave the sui-vey of "Western
Europe without commenting on the highly origi-
nal and infonnative analysis of the coui-se of
production and demand in four European coun-
tries. The facts developed and methods of pres-
entation will afford an extremely useful basis for
future discussion and analysis. There is clearly,
however, scope for differences of interpretation so
far as some of the policy implications which are
drawn are concerned.

The view that the impact of government policies
on demand, from an economic point of view, has
been of an arbitrary and almost accidental charac-
ter needs, perhaps, some qualification. In our
own view the survey underestimates the role and
significance of governmental fiscal and monetary
policies in the curtailment of effective demand
and the achievement of internal financial stability.
The stringent measures adopted by most European
governments curtailing many fields of government
activity and discouraging personal consumption
have been of major importance in holding down
demand.

For the future, the survey advocates major re-
liance on public expenditures, rather than on such
measures as reduction of taxes, to achieve eco-
nomic expansion. In suggesting that "the bal-
ance of advantage lies in concentrating primarily
on promoting economic expansion through public
spending," the survey again tends to underestimate
the danger of the effect of such policies on a re-
newal of inflation and does not give sufficient at-
tention to methods, in addition to tax incentives,
through which economic expansion might be pro-
motecl without the great risks to internal financial
stability entailed in heavy dependence on govern-
ment spending. As already indicated by the plans
recently submitted by some "Western European
countries, these include a wide variety of financial,
fiscal, and technical measures designed to increase
the competitiveness of their industries in Euro-
pean and world markets, to facilitate investment
and extension of credits, and, concomitant with
an improvement in jiroduction, ]:)roductivity, and
development of broader markets, to raise purchas-
ing power.

The survey correctly concludes that the means
to a solution of the problem of sustained economic
expansion "are only very partially within the con-
trol of individual countries." Participation in a
wide variety of international organizations dedi-
cated to a solution of common problems, such as
the United Nations Economic Commission for
Europe, is in itself recognition of that need for
common action in a wider context, to which the
survey refers. At the same time, there are many
important steps which individual countries can
and should take on their initiative and responsi-

* For text of propo.sals submitted on Mar. 30, see p. 602.
April 79, 7954

bility, without waiting for developments on a
broader basis. The level of reserves within Eu-
rope today, and the substantial progress already
made in bettering the structural position of Eu-
rope within the world economy, have very largely
increased the capability of Europe to deal with its
problems at its own initiative and in its own ways.
We would hope to see European initiatives increas-
ing in accord with capabilities.

Soviet Union and Eastern Europe

In turning from Western Europe to the East,
I wish again to congratulate those responsible for
this year's survey for a workmanlike job. This
year's survey presents a far more realistic ap-
praisal of economic conditions in Eastern Europe
than has been the case in the past.

In making this appraisal, the Ece Secretariat
has been assisted in no small measure by a series
of straightforward statements and decrees by the
chief spokesmen and the governing bodies of these
countries. This is particularly so in the case of
the U.S.S.E.

These statements and government decrees point
to the fact that the consumer sectors of the econ-
omies of the countries concerned have suffered in
the past in comparison with the producer and de-
fense sectors of these economies. And these same
statements and decrees clearly assert, in the words
of the survey, "that a greater effort is now to be
made to raise the standards of plan fulfillment
above the levels which have tended to rule hitherto
in the consumer sector of the economy."

The survey rightly stresses that the extent to
which the Soviet and Eastern European govern-
ments are prepared to raise substantially the stand-
ards of living of their citizens will necessarily
depend on the extent to which they are prepared
to forego previously planned increases in arma-
ments and heavy industry. There appears, how-
ever, to be little evidence of an intention to aban-
don previous goals for the producer and arma-
ments sectors of the Soviet economy. It would
not be unreasonable to assume, therefore, that the
upsurge in the consumer sector of this economy is
to result primarily from extra efforts rather than
from any shift of emphasis in investment. The
survey does not specifically draw this inference
but does emphasize that, on this all-important
question, no information is as yet forthcoming.

The survey also states that "the problems of
[Soviet] agriculture, and those industries based on
it, are far more conii)lex,'' and tluit "tliere is some
reason to think that hopes may have been pre-
maturely set on faster residts than it would be
reasonable to expect within the next -2 or 3 years,
especially in the key sector of animal husbandry."
This judgment seems to have been confiruu-d less
than a fortniglit ago by reports of a new Soviet
decree to the effect that drastic measures will be

611

needed to meet the Soviet Union's basic food
requirements.

Witli I'egard to the countries of Eastern Europe,
the survey concludes that "the assignment of in-
creased resources to consumption seems now to
be . . . not only urgent for welfare reasons,
but also a recognized necessity for the further
growth of industry itself." If this judgment is
correct, consumers in the East may have real
grounds for hope.

For the student of economic policies and tech-
niques— to say nothing of the student of com-
parative political systems — one of the most inter-
esting aspects of the chapters on Eastern Europe
is the stress put on the degree to which it has been
found necessary to soften the instruments of com-
pulsion, and to rely increasingly instead on the
instruments of individual incentive. If such a
shift does in fact take place to any significant
degree, not only the living standards but also the
methods of economic policy in East and West may
be found to be moving closer together.

Economic Development in Southern Europe

Tlie Secretariat is to be commended for its com-
prehensive and original analysis of the economic
development of the Southern P^uropean countries.
My Government has long considered the develop-
ment needs of these countries of fundamental im-
portance, and we welcome the survey's special at-
tention to these areas. The analysis of the his-
torical development and current problems of the
countries of Southern Europe is a major achieve-
ment of comprehensiveness and compression.
These chapters in the survey will serve as a source
of information and ideas for all who are inter-
ested in this field; and we can all hope that the
Secretariat efforts will stimulate both further
analyses of the problems at issue and further ac-
tion. The major responsibility for action must
of course necessarily rest primarily with the indi-
vidual governments concerned.

At this session, since the issue as an entity is
under consideration by the Ece for the first time,
we shall not attempt to discuss the details of this
section of the survey. For the time being, we
prefer to listen carefully and consider further the
comments of the countries primarily concerned
and the other European countries with whom their
economies are so interrelated, before making spe-
cific judgments on the policies recommended by
the survey.

The following are some preliminary and tenta-
tive observations. Three main obstacles to the

development of industry are noted by the survey —
the lack of public utilities, necessitating higher
than average investment to obtain power, access,
and the like ; the inefficiency of the labor supply ;
and the lack of savings. The survey points out the
lack of a favorable environment for enterprise in
Southern Europe and rightly stresses the vital
necessity of measures of "pre-industrialization"
to improve their climate. In this way, when in-
dustrial enterprises are launched, they can hope
to survive and grow effectively without high pro-
tection and artificial props which simply make
them more costly to the community.

We are gratified that, although suggesting a
moderate ad valorem tariff in the Southern coun-
tries for industry generally, the survey rejects
sharply increased protectionism as a solution to
these problems. Such measures could hardly be
expected to correct the basic difficulties limiting
the development of these countries. A more con-
structive long-range solution would be the pro-
motion of internal domestic conditions which
would attract investment capital, either public or
private, from other areas. This would involve
vigorous efforts to control inflationary pressures
and external deficits. It would also include such
positive measures of self-help as described by the
survey in the case of Italy.

We recognize that assistance from the more de-
veloped countries is important in creating favor-
able conditions for investment. Bilateral and in-
ternational programs, such as those in the field of
technical assistance and productivity, are among
the most fruitful approaches toward overcoming
the limitations of recently established government
machinery, the lack of managerial and technical
personnel, and the resistance to new methods,
which the survey notes as obstacles to large and
rapid increases in the capital structure of the less
developed countries. To these public programs
imist be added the technical contribution which
experienced private companies are making in con-
tributing engineering and management services in
the development of new industries in the Southern
European countries.

In coming to the end of my statement, I am
conscious of having failed to touch at all on a
number of important aspects of the survey and
of having dealt only very inadequately with others.
But, in a statement of reasonable length, justice
can never be done to some 200-odd pages of the
comprehensiveness and quality of the survey. I
would only conclude by expressing again our ad-
miration and thanks for the Secretariat's work,
and wishing them another equally fruitful year.

612

Department of State Bulletin

TREATY INFORMATION

Current Actions

MULTILATERAL

Aviation

Convention on the international rights in aircraft. Opened
for sisnature at Geneva June 19, 1948. Entered Into
force September 17, 1953. TIAS 2847.

Ratification deposited: Norway, March 5, 1954. The Con-
vention will enter into force for Norway on the nine-
tieth day after this deposit.

International Court of Justice

Statute of the International Court of Justice. Part of

the United Nations Charter signed at San Francisco

June 26, 1945 (59 Stat. 1055).
Party: San Marino, February 18, 1954 (pursuant to Gen.

Assembly Res. 806 (VIII) adopted December 9, 19.j3).
Declaration, under Article 36 of the Statute of the Court,

recognizing compulsory jurisdiction :

Termination : Australia, February 6, 1954.
Reacceptance : Australia, February 6, 1954, subject to cer-
tain exceptions.

Japan — Claims

Protocol on claims arising from joint acts or omissions
of the United States armed forces and the United Na-
tions forces in Japan. Signed at Tokyo February 19,
1954. Enters into force when signed and accepted by
Japan and the United States and upon entry into force
of the agreement regarding the status of the United
Nations forces in Japan.

Bignatures:
United States'
Japan '
Australia
Canada
New Zealand
Philippines

Union of South Africa '
United Kingdom

Japan — Status of United Nations Forces

Agreement regarding the status of the United Nations
forces in Japan, and agreed official minutes relating
thereto. Signed at Tokyo February 19, 1954. Enters
into force ten days after date of acceptance by Japan
for each government which had signed or accepted
prior to acceptance by Japan ; thereafter ten days
after signature, acceptance, or accession.
Signatures:

Japan '

United States acting as the Unified Command

Australia

Canada '

New Zealand '

Philippines

Union of South Africa '

United Kingdom

" Signed subject to acceptance.
April 79, 7954

Protocol for the provisional implementation of the agree-
ment regarding the status of the United Nations forces

in Japan.

Signed at Tokyo February 19, 1954.
Signatures:

Japan

United States acting as the Unified Command

Australia

Canada

New Zealand

Philippines

Union of South Africa

United Kingdom
Entered into Force: February 19, 1954.

BILATERAL

Afghanistan

Agreement relating to the transfer of certain United States
wheat or wheat flour to Afghanistan, pursuant to the
Mutual Security Act of 1951, as amended. EITeeted by
exchange of notes at Washington March 20, 1954. En-
tered into force March 20, 1954.

Chile

Agreement amending and extending the Air Force Mission
Agreement signed February 15, 1951 (TIAS 2201). Ef-
fected by an exchange of notes at Washington Sept. 9,
1953 and March 15, 1954. Entered into force March 15,
1954. To continue in force for three years from
Feb. 15, 1954.

Japan

Mutual Defense Assistance Agreement. Signed at Tokyo
March 8, 1954. Enters into force upon ratification by
Japan.

Arrangements for return of equipment under Article I of
the Mutual Defense Assistance Agreement of March 8,
19.>4. Si,:;ued at Tokyo March 8, 1954. Entered into
force March 8, 1954, operative on the date of entry into
force of the Mutual Defense Assistance Agreement.

Agreement regarding the purchase of agricultural com-
modities, with agreed oflicial minutes. Signed at Tokyo
March 8, 1954. Enters into force upon approval by
Japan.

Agreement relating to certain interim measures pending
the entry into force of the agreement regarding the
purchase of agricultural commodities of March 8, 1954.
Effected by exchange of notes at Tokyo March 8, 1954.
Entered into force March 8, 1954.

Agreement on economic arrangements, with agreed official
minutes. Signed at Tokyo March 8, 1954. Enters into
force upon approval of Japan.

Agreement regarding guaranty of investments, with re-
lated exchange of notes. Signed at Tokyo March 8, 1954.
Enters into force upon approval by Japan.

Mexico

Agreement amending and renewing migrant labor agree-
ment of 1951 (TIAS 2531), as amended, and establish-
ing a Joint Migratory Labor Conunisslon. Effected by
four exchanges of notes at Mexico March 10, 1954.

Entered into force March 10, 1954. To be continued
through December 31, 1955.

U.S.S.R.

Agreement on dates and procedures for the return of 20
subchasers type Ul'C and I'TC. 0 subchasers type SC,
and 12 torpedo boats typo PT of the US Navy received
by the USSR under the LendLease Act (55 Stat. 31).

Signed at Washington Marcli 20, 1954.

Entered into force Marcli 20, 1954.

613

PUBLICATIONS

Recent Releases

For sale by thr Sk/k rinfendrni of Documents, V.S. Oor-
emment Printing Offier, Wiishi)i(iton 2'>. D. C. Address
requests direct to the Superintendent of Documents, except
in the case of free publications, which may be obtained
from the Department of State.

The Refugee Relief Act of 1953. What it is— How it
Works. Pub. 53S2. Generiil Foreign Policy Series ^7.
4 pp. 5(J

A background summary containing helpful sugiiestions as
to the scope, operations, and administration of the act.

Foreign Ministers Meeting. Berlin Discussions, Janu-
ary 25-February 18, 1954. Pub. 5399. International Or-
ganization and Conference Series I, 26. 241 pp. 70^.

This publication of the record of the Berlin discussions
of the four Foreign Ministers is unusual in that a sub-
stantially verbatim record of a major international con-
ference is being made available to the public so soon after
the close of the conference.

The Atom for Progress and Peace. An address by Presi-
dent Eisenhower. Pub. .5403. General Foreign Policy
Series 88. 14 pp. 150.

This booklet shows how the "miraculous inventiveness of
man shall not be dedicated to his death, but consecrated
to his life." The addre.ss was made before the General
Assembly of the United Nations December S, 1953.

Our Policy for Germany. John Foster Dulles, Secretary

of State. Pub. 5408. European and British Common-
wealth Series 45. 29 pp. 15<f.

This paper is based on statements made by John Foster
Dulles, Secretary of State, at the Conference of the For-
eign Ministers of the United States, the United Kingdom,
France, and the Soviet Union, held at Berlin, January 2.")
to February 18, 1954.

The International Educational E.xchange Program. 12th
Semiannual Report, July-December 1953. Pub. 5409. In-
ternational Information and Cultural Series 35. 18 pp.
200.

This is a report to the Congress by the Secretary of State
and reviews exchange activities carried out under au-
thority of the act during the period July l-December 31,
19.53.

Highways — Boyd-Roosevelt Highway in Panama. TI.\S
2481. Pub. 5329. 6 pp. 50

Modus Vivendi Agreement between the United States and
Panama. Exchange of notes — Signed at Panamd Sept. 14,
1950.

Mutual Security — .Assurances Under Mutual Security Act
of 1951. TIAS 2623. Pub. 5224. 11 pp. 100.

Agreement between the United States and Viet-Nam. Ex-
change of notes — Dated at Saigon Dec. IS, 1951. and Jan.
3, 16, and 19, 1952.

Technical Cooperation — .Assurances Under Mutual Secu-
rity Act of 1951. TIAS 2640. Pub. 5259. 3 pp. 50.

Agreement between the United States and Mexico. Ex-
change of notes — Signed at Mexico Jan. 21 and 22, 1952.

Technical Cooperation — Program for Technical Assist-
ance to Medium and Small Industry. TIAS 27>")0. Pub.
5173. 16 pp. 100.

Agreement lietween the United States and Chile — Signed
at Santiago June 30, 1952.

Air Force Mission to Venezuela. TIAS 2766. Pub. 5155.
11 pp. 100.

Agreement between the United States and Venezuela —
Signed at Washington Jan. 16. 1953.

Interchange of Patent Rights and Technical Information.

TIAS 2773. Pub. 5170. 8 pp. 100.

Agreement, and Exchange of Notes, between the United
States and the United Kingdom of Great Britain and
Northern Ireland — Signed at London Jan. 19, 1953.

Technical Cooperation — Education Program. TIAS 2774.
Pub. 5171. 6 pp. 50.

-Agreement between the United States and Saudi Arabia —
Signed at Jidda Jan. 25, 1953.

.Mutual Defense Assistance. TI.AS 2770. Pub. 5174. 13

pp. 100.

Agreement between the United States and Brazil — Signed
at Rio de Janeiro Mar. 15, 1952.

Release of German Libraries and Properties in Italy.

TIAS 27N5. Pull. .1201. 3 pp. 50.

Agreement between the United St-ates and Other Govern-
ments— Signed at Rome Apr. 30, 1953.

Technical Cooperation — Joint Fund Program. TIAS
2788. Pub. 5207. 1 p. 50.

Agreement between the United States and Israel, amend-
ing agreement of May 9, 19.52, as supplemented and
ameii(le<l — Signed at Tel-.\viv .Mar. 11, 19.53.

Bahamas Long Range Proving Ground — Establishment of
High Altitude Interceptor Range. TIAS 2789. Pub. 5208.
4 pp. (.Map). 200.

Agreement between the United States and the United
Kingdom of Great Britain and Northern Ireland. Ex-
change of notes — Signed at Washington Feb. 24 and Mar.
2, 1953.

Defense — Communications Facilities in Newfoundland.

TIAS 2810. Pub. 5225. 3 pp. 50.

Agreement between the United States and Canada, amend-
ing agreement of Nov. 4 and 8, 19.")2. Exchan.L;e of notes —
Dated at Ottawa Jlay 1 and July 31, 19.53.

Emergency Wheat Aid to Pakistan. TIAS 2832. Pub.

5252. 4 pp. 50.

Agreement between the United States and Pakistan —
Signed at Washington June 25, 1953.

Double Taxation— Taxes on Income. TIAS 2833. Pub.

5253. 35 pp. 150.

Conventions between the United States and Belgium —
Signed at Washington Oct. 28, 1948: supplementary con-
vention signed at Washington Sept. 9, 1952. Exchange of
notes — Signed at Washington Aug. 7 and Sept. S, 1952.

Friendship, Commerce and Consular Rights. TIAS 2861.
Pub. 5308. 7 pp. 100.

Protocol between the United States and Finland, modify-
ing treaty of Feb. 13, 1934. Signed at Washington Dec. 4,
1952.

614

Departmenf of State Bulletin

April 19, 1954

Index

Vol. XXX, No. 773

Asia. Consultations With U.K., France Regarding South-
east Asia (Dulles) 390

Atomic Energy. Fukuryu Maru Accident (Allison) . . 598

Congress, The. Recommendations Concerning U.S. Foreign

Eciinomic Policy (Eisenhower) 602

Economic Affairs

Berlin Rebuilds — Economic Reconstruction of West Ber-
lin. 1948-1953 (Woodward) 584

Recommendations Concerning U.S. Foreign Economic Pol-
icy (Eisenhower) 602

Review of .\nnual EcE Economic Survey (Brown) . . . 608
Educational Exchange. Strengthening of Anglo-.-Vmerican

Ties (.\ldrich) 591

Europe. Review of Annual ECB Economic Survey

(Brown) 608

Germany

Berlin Rebuilds — Economic Reconstruction of West Berlin,

1948-1953 (Woodward) 584

Western Powers' Attitude Toward East German Govern-

nu'Ut 588

Immigration and Naturalization. New Trends in American

Immigration (Maney) 599

India

America and the New India (Jernegan) 593

FOA Projects To Aid India 597

Indochina. The Importance of Indochina (Smith) . . . 589
International Organizations and Meetings. Consultations
With U.K., France Regarding Southeast Asia

(Dulles) 590

Iran. Iranian Oil Negotiations (Dulles) 583

Japan. Fukuryu Maru Accident (Allison) 598

Mutual Security

America and the New India (Jernegan) 593

FoA Projects To Aid India 597

"Not One of Us Alone" — A Mutual Security Program for

1955 (Dulles) 579

North Atlantic Treaty Organization. "Not One of Us
Alone" — A Mutual Security Program for 1955
(Dulles) 579

Presidential Documents. Recommendations Concerning

U.S. Foreign Economic Policy (Message to Congress) . 602

Protection of Nationals and Property. U.S. and U.K. To

Discuss Enemy Property Claims 590

Publications. Recent Releases 614

Treaty Information. Current Actions 613

United Kingdom

Strengthening of Anglo-American Ties (Aldrich) . . . 591

U.S. and U.K. To Discuss Enemy Property Claims . . . 590
United Nations

Current U.N. Documents 607

Review of Annual Ece Economic Survey (Brown) . . . 608

Name Index

Aldrich, Winthrop W 591

Allison, John M 598

Brown, Winthrop G 608

Dulles, Secretary 579, 583, 590

Eisenhower, President 602

Jernegan, John D 593

Maney, Edward S 599

Smith, Walter Bedell 589

Woodward, Margaret Rupli 584

Check List of Department of State
Press Releases: April 5 11

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

Press releases issued prior to April 5 which ap-
pear in this issue of the Bulletin are Nos. 170 of
April 1 and 176 of April 3.

Subject
Dulles : Mutual security program
U.S. Mexitan radio talks
Educational exchange
Kalijarvi : Copyright convention
Dulles : Meeting of Republican

women
Enemy property claims
Coal and Steel Community loan
Byroade : Middle East in new per-
spective
Wainhnuse : Charter review
Allison : Fukuryu Maru accident
Dulles' departure for Europe
Dulles : Iran oil negotiations
Smith : Importance of Indochina

*Xot printed.

t Held for a later issue of the Bulletin.

No.

Date

178

4/5

tl79

4/5

*180

4/6

*1S1

4/7

*182

4/7

183

4/8

tl84

4/8

tl8.5

4/9

tl86

4/9

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4/9

■►iss

4/9

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4/10

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4/10

the

Department

of

State

Another in the series . . . Foreign Relations of the
United States . . . the basic source of information on
U.S. diplomatic history

1936, Volume /, General, The British Commonwealth

Of outstanding historical interest in this volume are
the documents on two steps along the road to World War
II : the breakdown in efforts for military and naval dis-
armament and Hitler's dramatic move of sending his
troops into the Rhineland.

Aside from problems of armament and threats to
peace, the multilateral subjects treated in this volume
include negotiations for the suppression of liquor
smuggling into the United States and on a number of
economic problems. The section on the British Com-
monwealth deals entirely with commercial matters,
especially with the efforts of Secretary of State Hull to
secure the cooperation of the British Government in his
international trade program.

Copies of this volume may be purchased from the
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April 26, 1954

^ENT o^

■*tes o^

UNITED STATES AND UNITED KINGDOM STATE
POSITIONS ON EUROPEAN DEFENSE COM-
MUNITY 619

THE MIDDLE EAST IN NEW PERSPECTIVE • by

Assistant Secretary Byroade 628

THE UNITED STATES AND CHARTER REVIEW • by

Deputy Assistant Secretary Wainhouse 642

DISCUSSIONS ON STATUS OF WOMEN • Statements

by Mrs, Lorena B. Hahn 646

PRESENT UNITED STATES POLICY TOWARD

CHINA • by Alfred le Sesne Jenkins 624

REPORT ON THE TENTH INTER-AMERICAN CON-
FERENCE • Article by miliam G. Bou-dler 634

For index see inside back cover

Boston Public Library
Superintendent of Documents

MAY 2 4 1954

bulletin

Vol. XXX, No. 77 1 • Publication 5437
April 26, 1954

For sale by the Superintendent of Documents

0. S. Government Printing Office

Washington 25, D. C.

Peice:

62 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents

The printing of this pubhcation has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).

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

The Department of State BULLETIN,
a vceeMy publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the toorfc of the De-
partment of Stale and the Foreign
Service. The BULLETIN includes
selected press releases on foreign pol-
icy, issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as tcell as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
uihich the United States is or may
become a party and treaties of gen-
eral international interest.

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

United States and United Kingdom State Positions
on European Defense Community

Following are the texts of {1) a message lohich
the President sent on April 15 to the Prime Min-
isters of the six nations signatory to the European
Defense Community — Belgium, France, the Fed-
eral Eepublic of Germany, Italy, Luxernbourg,
and the Netherlands, and (2) a "Stateine/nt of
Commo7i Policy on Military Association Betioeen
the Forces of the United Kingdom and the Euro-
pean Defence Community, ^'''^ released on April llf.
by the United Kingdom.

U. S. ASSURANCES CONCERNING EDC

White House press release dated April 16

As the time approaches for historic decision on
the remaining measures required to put into effect
the European Defense Community Treaty, it is
appropriate for me to state clearly the United
States position on the relation between the Euro-
pean Army and the European Community on the
one hand, and the North Atlantic Treaty Organi-
zation and the broader Atlantic Community on the
other hand. The essential elements of this posi-
tion, which have been discussed with leaders of
both political parties in the Congress, may be
simply stated.

The United States is firmly committed to the
North Atlantic Treaty. This Treaty is in accord-
ance with the basic security interests of the United
States and will steadfastly serve those interests
regardless of the fluctuations in the international
situation or our relations with any country. The
obligations which the United States has assumed
under the Treaty will be honored.

The North Atlantic Treaty has a significance
which transcends the mutual obligations assumed.
It has engendered an active practical working re-
lationship among the Atlantic nations. Through
the North Atlantic Treaty Organization, the
United States and its allies are working to build
the concrete strength needed to deter aggression
and, if aggression occurs, to halt it without devas-

' Cmd. 9126, Memorandum regarding United Kingdom
Association with the European Defence Community,
Annex B.

April 26, 1954

tation or occupation of any Nato country. These
nations are also seeking to make the Atlantic
alliance an enduring association of free peoples,
within which all members can concert their efi'orts
toward peace, prosperity, and freedom.

The European Defense Community will form
an integral part of the Atlantic Community and,
within this framework, will ensure intimate and
durable cooperation between the United States
forces and the forces of the European Defense
Community on the continent of Europe. I am
convinced that the coming into force of the Euro-
pean Defense Community Treaty will provide a
realistic basis for consolidating western defense
and will lead to an ever-developing community of
nations in Europe.

The United States is confident that, with these
principles in mind, the Western European nations
concerned will proceed promptly further to de-
velop the European Community through ratifica-
tion of the European Defense Community Treaty.
Wlien that Treaty comes into force the United
States, acting in accordance with its rights and
obligations under the North Atlantic Treaty, will
conform its actions to the following policies and
undertakings :

( 1 ) The United States will continue to maintain
in Europe, including Germany, such units of its
armed forces as may be necessary and appropriate
to contribute its fair share of the forces needed for
the joint defense of the North Atlantic area while
a threat to that area exists, and will continue to
deploy such forces in accordance with agreed
North Atlantic strategy for the defense of this
area.

(2) The United States will consult with its fel-
low signatories to the North Atlantic Treaty and
^vith the European Defense Community onques-
tions of mutual concern, including the level of the
respective armed forces of the European Defense
Community, the United States and other North
Atlantic Treaty countries to be placed at the dis-
posal of the Supreme Commander in Europe.

( 3 ) The United States will encourage the closest
possible integration between the European De-
fense Community forces on the one hand, and
United States and other North Atlantic Treaty

619

forces on the other, in accordance with approved
plans with respect to their command, training,
tactical support, and logistical oi'ganization
developed by the military agencies and the
Supreme Commanders of the North Atlantic
Treaty Organization.

(4) The United States will continue, in con-
formity with my recommendations to the Congress,
to seek means of extending to the Atlantic Com-
munity increased security by sharing in greater
measure information with respect to the military
utilization of new weapons and techniques for the
improvement of the collective defense.

(5) In consonance with its policy of full and
continuing support for the maintenance of the in-
tegrity and unity of the European Defense Com-
munity, the United States will regard any action
from whatever quarter which threatens that
integrity or unity as a threat to the security of the
United States. In such event, the United States
will consult in accordance with the provisions of
Article 4 of the North Atlantic Treaty.

(6) In accordance with the basic interest of the
United States in the North Atlantic Treaty, as ex-
pressed at the time of ratification, the Treaty was
regarded as of indefinite duration rather than for
any definite number of years. The United States
calls attention to the fact that for it to cease to be
a party to the North Atlantic Treaty would appear
quite contrary to our security interests when there
is established on the Continent of Europe the solid
core of unity which the European Defense Com-
munity will provide.

U.K. ASSOCIATION WITH EDC

Paet I. — Common Aims

I

In order to bring about the effective and continuous
cooperation between their respective armed forces placed
under the command of the Supreme Allied Commander,
Europe, provided for in article 2 (a) of the agreement
regarding cooperation between the United Kingdom and
the European Defence Community,^ the authorities con-
cerned of the parties to that agreement have agreed that
it is necessary to reconcile, on a basis of reciprocity,
differing techniques in as many fields as possible, so
leading to a common military outlook. They recognise
that this reconciliation will be attained by progressive
measures of adjustment and in the light of experience,
and that the first step will be the exchange of the neces-
sary information in the various fields. The ultimate aim
is to enable the armed forces of the United Kingdom and
the European Defence Community to operate together
in the circumstances described in article 68 (paragraph
3), 69 (paragraph 3), and 70 (paragraph 3) of the Treaty
Establishing the European Defence Community, without
reducing their effectiveness.

"This draft agreement, which is included in the Com-
mand Paper, is not printed here.

II

The following are among the particular fields, appli-
cable to the three Services, in which a common military
outlook shall be sought :• —

(o) Tactical Doctrine and Staff Methods

In order to ensure the best cooperation between units
of the two armed forces, tactical doctrines and staff
methods shall be reconciled as far as possible. To this
end, a continuous exchange of documentary information
shall take place between the military authorities of the
United Kingdom and of the European Defence Com-
munity. After the establishment of the European Defence
Community a joint study group shall be set up to examine
the means of evolving common doctrines. Observers at
tactical demonstrations and exercises shall be exchanged.

(6) Logistics

The common aim is to remove .such differences in logis-
tics between the armed forces of the United Kingdom
and of the European Defence Community placed under
the command of the Supreme Allied Commander, Europe,
as might prejudice active operations in the field. This
calls for the harmonisation of their logistic systems and
the standardisation of their equipment.

Harmonisation of Logistics Systems

(i) As a first step the elimination of differences In
logistic organisation shall be sought in certain of the less
controversial fields through the agency of joint study
groups.

Standardisation of Equipment

(ii) Cooperation in this field shall be closely related
to the work of the military agency for standardisation of
the North Atlantic Treaty Organisation. As an immediate
step, a common system of equipment referencing shall be
sought. The military authorities of the United Kingdom
and of the European Defence Coramunily shall exchange
all the necessary documentary information on equipment
and shall arrange the appropriate demonstrations.

(c) Training

The training methods employed by both armed forces
shall be, as far as possible, on similar lines. This will be
achieved from the early stages of the formation of the
European Defence Forces by the exchange of personnel
and of documentary information, and by the allocation
of vacancies in United Kingdom military schools and
training establishments to personnel of the European
Defence Community, and reciiirocally. At a later stage,
exchanges of units may also be arranged.

These measures will in many cases represent an ex-
tension of similar facilities and arrangements at present
in force between the United Kingdom and North Atlantic
Treaty Organisation countries and will be subject to simi-
lar financial arrangements.

The manner in which these measures can be applied in
the three Services is set out in more detail in Part II.

Ill

It is recognised that the extent to which the common
aims can be achieved will be conditioned by the following
factors :

(a) the obligation to conform with the doctrines and
policy of the North Atlantic Treaty Organisation;

(b) the stage of evolution of the European Defence
Forces ;

(c) the special characteristics of each Service: it is
probable that the closest association can be achieved in
the case of air forces ;

(d) such security regulations as may be laid down by
the parties;

(e) the resources which may be available, bearing in
mind the other commitments of the United Kingdom and
of the European Defence Community.

These resources are likely to vary between each Service.

620

Department of State Bulletin

PART II. — Measures to be Taken by Each Sekvice fob
Practical Collahoration Between the Forces of
THE United KiNGDOii and the Eubopelan Defence
Community

AIR FORCE

i. In the early stages of the formation of the European
Air Force, the Royal Air Force will assist, if desired —

(a) in the establishment of the Headquarters of the
European Air Force, including the secondment of officers ;

(6) by the secondment of ofiicers, at all levels, to the
European Air Force for command and staff service, in-
cluding technical and administrative, and for flying duties ;

(c) in tne formation of the European Air Defence Com-
mand and Training Command :

((I) by providing some initial and refresher flying and
technical training, and in the organisation of and super-
vision in technical schools.

ii. When the European Air Force is more fully es-
tablished collaboration may take the following form :—

(a) secondment of Royal Air Force staff officers for
duty with the Headquarters of the European Air Force and
riVr versa;

(6) secondment of Royal Air Force officers to the
European Air Force for command and staff service, in-
cluding technical and administrative, and for flying duties,
and similarly of European Air Force officers to the Royal
Air Force ;

(c) participation in integrated headquarters staffs in
the circumstances described in Article 69 (paragraph 3)
of the Treaty Establishing the European Defence
Community ;

(d) Royal Air Force assistance in the organisation of
European air defence including the setting up of close
links between control and reporting systems of the
European Defence Forces and those of the Royal Air
l'"(u-ce:

(c) joint study of the possibility of the correlation of
tlie aircraft production and air training programmes of
till' European Defence Community and the United
Kingdom.

iii. The closest association will be established between
the European Air Force and Royal Air Force formations
placed under the command of the Supreme Allied Com-
mander, Europe. The detailed measures of association
which may be arranged will be determined by joint con-
sultation with SACEUR. [Supreme Allied Commander,
Europe] Such arrangements may include

(a) the inclusion of individual Royal Air Force squad-
rons and complete Royal Air Force within European Air
Force formations, and ince versa, where military con-
siderations make tliis desirable and logistic considera-
tions make it practicable ;

(6) training by the Royal Air Force of such squadrons
as may be nominated by the European Defence Com-
munity.

those already existing for the exchange of personnel be-
tween the United Kingdom forces and forces of the North
Atlantic Treaty Organisation. Until, however, common
doctrines are developed by the United Kingdom and Euro-
pean Defence Forces, the level and number of such ex-
changes will necessarily be limited and on the following
lines : —

(a) between European Army staffs and those of the
Headquarters of the British Army stationed on the Conti-
nent, including an exchange of liaison officers where
appropriate ;

( b ) between officers of combatant and administrative
units, for limited periods ;

(c) between students at such schools and training
establishments as may be agreed.

vi. The closest association will be established between
the land formations of the European Defence Community
and those of the United Kingdom placed under the com-
mand of the Supreme Allied Commander, Europe. De-
tailed measures of association which may be arranged
will be determined by joint consultation with Saceur. If
requested by Saceub, such arrangements may include :

(o) the inclusion of British Army formations within
European Army formations, and vice versa, where military
considerations make this desirable, and logistic considera-
tions make it practicable ;

(6) large-scale joint United Kingdom and European
Defense Community manoeuvres within the North Atlantic
Treaty Organisation. In this case the directing and um-
piring staffs may be integrated temporarily ;

(c) the participation of United Kingdom divisions in
training and exercises with the European Army under
the overall command of SACEtm, and vice versa. In simi-
lar conditions, small units of the British Army may take
part in formation training with the European Army and
vice versa.

NAVY

vii. Close association already exists between navies of
the countries of the North Atlantic Treaty Organisation
and the Royal Navy, and will be extended to the Euro-
pean Defence Community. Assistance during the build-up
period may be of particular value.

viii. The Royal Navy will cooperate in the following
ways : —

(a) by the provision of limited training facilities;

(6) by the participation of Royal Navy units in training
and at naval or amphibious exercises which include Euro-
pean Naval Forces ;

(c) by close cooperation with the European Defence
Community in the organisation, working and function of
the European Admiralty, including the appointment of a
liaison officer ;

(d) by advising on the development of the European
Navy.

Paris, April IS, 1951,.

ARMY

iv. In the early stages of the formation of the European
Army, the British Army will, if desired, assist them In
their planning in the following ways :

(a) by the secondment of officers to the Headquarters
of the European Army and to its training and logistics
staffs ;

(6) by the extension to the European Army of the
present arrangements whereby vacancies are made avail-
able at United Kingdom schools to forces of the Nortli
Atlantic Treaty Organisation. (The United Kingdom
schools concerned are the Staff College, Arms Schools,
the Schools of Land-Air Warfare, the .loint School of
Chemical Warfare and administrative training establish-
ments) ;

(c) by the provision of suitable tactical demonstrations
at the request of the European Army.

V. Once the European Army is established arrangements
may be made for the exchange of personnel similar to

Luxembourg Parliament
Acts on EDC Treaty

Statement hy the President

White House press release dated April 7

I have just learned of the vote of the Luxem-
bourg Parliament, approvino; ratification of the
treaty establishinp; the European Defense Com-
munity. Luxembourp; has thus become the fourth
of the six European Defense Community nations
whose Parliament has taken favorable action.

Apri] 26, 7954

621

This represents further significant progress in
the establislunent of this Community. The inte-
gration of the defense forces of France, Germany,
the Benelux nations and Italy will do much to as-
sure conditions in Europe which will contribute
to the peace and security of that area.

Loan Negotiations With
Coal and Steel Community

Press release 184 dated April 8

Negotiations opened on April 8 between the
U.S. Government and the High Authority of the
European Coal and Steel Community to imple-
ment the suggestion put forward by President
Eisenhower in June 1953 that financing of a por-
tion of the High Authority's investment program
by the U.S. Government or one of its agencies
would foster European integration in a tangible
and useful way.

The United States delegation consists of Secre-
tary Dulles, Secretary of the Treasury George M.
Humphrey, Deputy Director of the Foreign Oper-
ations Administration, William M. Rand, and the
Managing Director and President of the Export-
Import Bank, Gen. Glen E. Edgerton.

The High Authority is represented by its Presi-
dent, Jean Monnet, and two of its meinbei"s, Enzo
Giacchero and Heinz Potthoff.

In the first meeting the representatives of the
High Authority submitted a request for a loan
from the United States to be used in the financing
of the development of the raw material resources
of the Community. Subsequent meetings are to
take place on a daily schedule.

U.S.-U.K.-French Discussions on
Indochina and Southeast Asia

U.S.-U.K. statement

Press release 192 dated April 18

Following is the text of a joint statement by
Secretary Dulles and Foreign Secretary Anthony
Eden:

At the conclusion of their meetings in London
on April 12 and 13, during which they discussed
a number of matters of common concern, Mr. John
Foster Dulles and Mr. Anthony Eden issued the
following statement :

We have had a full exchange of views with
reference to Southeast Asia. We deplore the fact

622

tliat on the eve of the Geneva Conference the
Communist forces in Indochina are increasingly
developing their activities into a large-scale war
against the forces of the French Union. They
seek to overthrow the lawful and friendly Gov-
ernment of Viet-Nam which we recognize; and
they have invaded Laos and Cambodia. We re-
alize that these activities not only threaten those
now directly involved, but also endanger the peace
and security of the entire area of Southeast Asia
and the Western Pacific, where our two nations
and other friendly and allied nations have vital
interests.

Accordingl}^ we ai'e ready to take part, with the
other countries principally concerned, in an ex-
amination of the possibility of establishing a col-
lective defense, within tlie framework of the Char-
ter of the United Nations, to assure the peace,
security and freedom of Southeast Asia and the
Western Pacific.

It is our hope that the Geneva Conference will
lead to the restoration of peace in Indochina. We
believe that the prospect of establishing a unity
of defensive j)urpose throughout Southeast Asia
and the Western Pacific will contribute to an hon-
orable peace in Indochina.

A\'e have also discussed developments in the field
of atomic enei'gy. It will be recalled that on
March 19 the Soviet Ambassador in Washington
was handed by the Secretary of State of the
United States a concrete proposal elaborating on
that portion of President Eisenhower's speech
of December 8, 1953, before the General Assem-
bly of the United Nations which dealt with the
subject of peaceful use of atomic energy. The
Government of the United Kingdom, together
with several other friendly nations concerned,
had been consulted and had concurred in the
terms of the concrete proposal before it was given
to the Soviet Government. No reply has yet been
received from that government, which is study-
ing the proposal. We also noted that the British
Re])resentative to the United Nations in New
York, with the support of the United States and
French Representatives, had suggested that a
call be issued for an early meeting of the sub-
committee of the Disarmament Commission of
the United Nations.

U. S. -French Statement

Press release 197 dated April 14

Following their conversations in Paris on April
14th, the United States Secretary of State, Mr.
John Foster Dulles, and the French Minister of
Foreign Affairs, M. Bidault, issued the following
statement :

For nearly two centuries it has been the prac-
tice for representatives of our two nations to meet
together to discuss the grave issues which from
time to time have confronted us.

Department of State Bulletin

In pursuance of this custom, which we hope to
continue to the benefit of ourselves and others, we
have had an exchange of views on Indochina and
Southeast Asia.

Mr. Dulles expressed admiration for the gallant
fight of tlie French Union forces, who continue
with unshakeable courage and determination to
rejiel Communist aggression.

We deplore the fact that on the eve of the
Geneva Conference this aggression has reached a
new climax in Viet-Nam particularly at Dien-
Bien-Phu and has been renewed in Laos and ex-
tended to Cambodia.

The independence of the three Associated
States within the French Union, which new agree-
ments are to complete, is at stake in these battles.

We recognize that the prolongation of the war
in Indochina, which endangers the security of the
countries immediately affected, also threatens the
entire area of Southeast Asia and of the Western
Pacific. In close association with other interested
nations, we will examine the possibility of estab-
lishing, within the framework of the United Na-
tions Charter, a collective defense to assure the
peace, security and freedom of this area.

We recognize that our basic objective at the
Geneva Conference will be to seek the re-establish-
ment of a peace in Indochina which Avill safe-
guard the freedom of its people and the independ-
ence of the Associated States. We are convinced
that the possibility of obtaining this objective de-
jiends upon our solidarity.

Statement by Secretary Dulles >

I went to London and Paris because of the criti-
cal situation in Indochina and the threat that it
carried to the vital interests of many countries in
Southeast Asia and the Pacific.

Among those vital interests are those of the
French Union and the British Commonwealth. I
returned well satisfied with the results of my trip.

The loss of the China mainland to communism
was a great disaster. That disaster would be com-
pounded if there were added to it the loss of the
millions of people, the vast economic resources,
and the strategic position represented by South-
east Asia and the Pacific islands.

I feel confident that that loss can be prevented
without extending the Indochina war if the free
nations having vital interests in the area are united
in a determination to preserve peace and freedom
in the area. That unity of purpose rests upon
full understanding. That understanding has been
greatly enhanced by the talks which I have had in
London with Prime Minister Churchill and For-
eign Secretary Eden, and the talks I have had in
Paris with Premier Laniel and Foreign Minister

Bidault. Our common purposes were expressed
in joint statements which we issued on Tuesday
in London and yesterday in Paris.

Already before I left for London the Govern-
ment of Thailand had indicated its approval of
our purposes, and President Magsaysay of the
Philippines has now indicated acceptance in prin-
ciple.

Out of this unity, which is now taking definite
form, will come free-world strength which, I be-
lieve, will lead the Communists to renounce their
extravagant ambitions to dominate yet another
major portion of the globe.

The Geneva conference, which begins a week
from Monday, will be a test. I am more than
ever persuaded that if the free world stands firm,
the Geneva conference will advance the cause of
freedom in Southeast Asia and the Pacific, and
safeguard that freedom in peace and justice.

U.S. Policy Toward Indochina

Statement hy Jameson Parker
Department Press 0-fficer ^

Certain remarks with regard to United States
policy toward Indochina have been attributed to
a high Government official [Vice President Nixon] .
The contents of the speech referred to and ques-
tions and answers which followed were off the
record, but a complete report of the speech has
been made available to the State Department.

The speech enunciated no new United States
policy with regard to Indochina. It expressed
full agreement with and support for the policy
with respect to Indochina previously enunciated
by the President and the Secretary of State.

That policy was authoritatively set forth by
the Secretary of State in his speech of March 29,
1954,^ in which he said :

Under the conditions of today, the imposition on South-
east Asia of the political system of Communist Russia and
its Chinese Communist ally, by whatever means, would
be a grave threat to the whole free community. The
United States feels that that possibility should not be
passively accepted but should be met by united action.
This might involve serious risks. But these ri.sks are
far less than those that will face us a few years from
now if we dare not be resolute today.

In regard to a liypothetical ([uestion as to
whether United States forces should be sent to
Indochina in the event of French withdrawal, the
high Government official categorically rejected the

' Made at Syracuse, N. Y., on Apr. 15 upon his return
from London and Paris.

' Made to correspondents on Apr. 17.
' Bulletin of Apr. 12, 1954, p. 5.39.

April 26, J 954

623

premise of possible French withdrawal. Insofar
as the use of United States forces in Indochina was
concerned, he was stating a course of possible ac-
tion which he was personally prepared to support
under a higlily unlikely hypothesis.

The answer to the question correctly emphasized
the fact that the interests of the United States
and other free nations are vitally involved with
the interests of France and the Associated States
in resisting Communist domination of Indochina.

Letters of Credence

Yugoslavia

The newly appointed Ambassador of the Fed-
eral People's Republic of Yugoslavia, Leo Mates,
presented his credentials to the President on April
13. For the text of the Ambassador's remarks
and the text of the President's reply, see Depart-
ment of State press release 193.

Present United States Policy Toward China

hy Alfred le Sesne Jenkins

Officer in Charge, Chinese Political Affairs'

In recent years we have often heard it said that
more heat than light has been cast on the China
question. I am not surprised at the heat, nor do
I object to it, provided there is also sufficient light.
The fate of one-fourth of the world's population
is not a matter which can be taken lightly, and
the addition of China's vast material and man-
power resources to the Soviet bloc is a matter in-
volving not only the security interests of the
United States but those of the entire free world.
I do not see how one can help feeling strongly
about these matters. We need not apologize that
our thinlcing about China is charged with feeling.
National policies are an expression of national
interests concerning which there is naturally mucli
feeling, and our policies are an expression both
of what we are and of what we want. We are a
nation of free peoples. We want to remain free
to pursue in peace our proper national destiny,
and we want the same freedom and rights for
others.

We do not believe that the Chinese Communist
regime represents the will of the people it con-
trols. First capitalizing on the natural desire
of the Chinese people to enjoy full recognition
and respect for their importance in the world
community, the regime then proceeded by its
"lean-to-one-side" policy to betray the powerful
Chinese longings to stand up straight. It has
followed slavishly the leadei'ship of the Soviet
Union and attempted to emulate it in all its ways.
Witli the aid of thousands of Soviet advisers it

' Address made before the American Academy of Politi-
cal and Social Science, Philadelphia, Pa., on Apr. 2.

has set about methodically to change the entire
fabric of traditional Chinese culture, substituting
communism's materialistic, atheistic doctrines
wherein the state is the be-all and end-all and the
individual its pawn.

The regime at first attracted considerable sup-
port, principally through its sponsorship of a land
redistribution program, but is now, after estab-
lishment of the prerequisite police-state controls,
taking the land away from the owners in the same
collectivization process which is familiar in other
Communist countries and which invariably has
brought suffering in its wake. China's much ad-
vertised "New Democracy" is of course in reality
"old communism."

From its inception the regime has proclaimed
a "lean-to-one-side" policy in foreign affairs, and
has left no doubt about its dedication to the propo-
sition of world Communist revolution under the
leadership of the Union of Soviet Socialist Re-
publics. Wliile its "leaning-to-one-side" has not
brought it to the position of complete "prostra-
tion-to-one-side" characteristic of the Eastern
European Soviet satellites, there is not the slight-
est evidence that this indicates any separatist tend-
encies. The difference in status of Peiping in
its relationship with Moscow (as distinguished
from that of the Eastern European satellites) is
rather due chiefly to its having come to power
without benefit, except in Manchuria, of Soviet
Army occupation; to the prestige of Mao Tse-
tung, arising from his long history of leadership
of Chinese communism and his literary contri-
butions to theoretical communism; to China's as-
sumption of the role of leadership in the Com-

624

Department of State Bulletin

munist program for Asia; and to the geographi-
cal position, size, and importance of China itself.
This relationship has been characterized as that
of junior partner, and the association has every
mark of being a willing, determined, and close
one.

Cooperation Between Mao and Moscow

Although Soviet officials previous to the
Chinese Communist assumption of power were
protesting that they did not know what "those
independent agrarian reformers" were up to, there
was already close cooperation between Mao and
Moscow. Despite the Treaty of Friendship and
Alliance between the Republic of China and the
Union of Soviet Socialist Republics signed on
August 14, 1945, which specified that Soviet "sup-
port and aid ... be entirely given to the na-
tional government as the central government of
China," the Soviet Union a few months later
turnecl over to the Chinese Communists the Jap-
anese equipment it received in Manchuria. The
Union of Soviet Socialist Republics instituted
diplomatic relations with Peii^ing only 2 days
after the regime's establishment, and five Eastern
European Soviet satellites followed suit within
the week. The North Korean regime, the East
German Communist satellite, and the so-called
People's Republic of Mongolia also established
diplomatic relations with the new regime during
the first month of its existence.

The Sino-Soviet Friendsliip Association, a mass
organization whose aim, according to the Com-
munists, is "to found and consolidate fraternal
friendship and cooperation between the Chinese
and Soviet people and to develop the interflow of
knowledge and experience of the two great na-
tions" was founded in Peiping only 4 days after
the establishment of the so-called "People's
Government."

The Mao regime has since concluded with the
Soviet Union and other Communist states vari-
ous economic, military, and cultural treaties and
agreements. Strong ideological ties bind Moscow
and Peiping, and a number of Chinese Commu-
nist leaders are Moscow trained. The Chinese
Communists also feel the need for close associa-
tion with the Soviet Union to develop their mili-
tary strength and striking power. They need
Russian military supplies and equipment, and
Russian technicians and economic aid for the de-
velopment of heavy industry, which they view as
a necessary base for a large military establish-
ment. In exchange, China can furnish the Soviet
Union with needed raw materials and food stuffs,
and offer the use of the warm water ports of
Dairen and Port Arthur. The Union of Soviet
Socialist Republics does not want a strong, inde-
pendent China on its Siberian border. It is nat-
urally interested in the survival and growth of
a Communist China (so long as it does not grow

too strong and independent) and in alliance with
a Communist China it is in a far stronger power
position than it would be otherwise. The close
cooperation and interdependence between the
Chinese Communists and the Soviet Union in the
Korean aggression is well known.

As a corollary to Communist China's "leaning"
to the Soviet side, she has unceasingly heaped
vituperation and all manner of abuse and insult
upon the free world in general and the United
States in particular — over the radio, in news-
papers, at the conference table, and in numerous
periodicals in many languages (even including
Esperanto), which are sent all over the world.

Aside from the serious policy implications in
this performance, such conduct somehow seems
especially shocking, coming from the Chinese.
For well over a century Americans have had a
deep interest in and sincere friendship for the
Chinese people. Our record in supporting China's
territorial integrity and political independence is
a well-known one. It is a source of deep concern
and regret to us that for more than 4 years we
have been cut off from our accustomed close asso-
ciation with the great majority of the Chinese
people.

There are some who feel that this unfortunate
situation could be remedied if we were to recog-
nize the Peiping regime and if it were accepted
as representing China in the United Nations.
Actually, even if we considered such action to be
morally justifiable, there is not a shred of evidence
to indicate that we could expect reciprocity on
any satisfactory basis, leading to a renewal of our
association with the Chinese on the mainland.
During the few months preceding and following
the establishment of the so-called People's Gov-
ernment in Peiping, Chinese Communist authori-
ties jailed or otherwise maltreated a number of
our official representatives, and never recognized
their official status. Finally, when the situation
became intolerable, we withdrew all of our official
representatives, requesting the British to repre-
sent our interests. The British have tried to do
this to the best of their ability. They are ham-
pered in this endeavor, however, for while they
have recognized the regime and have diplomatic
and consular officials on the mainland, the Com-
munists have not seen fit to establish diplomatic
relations with the British, and have refused to
accord full accreditation to British officials. The
British, and indeed others with fully accredited
representation in Peiping, have in vain attempted
on our behalf to secure the release of some hun-
dred Americans held in Communist China against
their wishes, 32 of whom are in jail now, held in-
communicado, without trial, and without even a
statement of the charges held against them.

Conduct of Peiping Regime

The Peiping regime has followed no recognized
standards of international conduct. It has re-

April 76, 7954

625

peatedly violated the terms of the Korean Armi-
stice Agreement. It has disregarded international
rules on the care of prisoners of war. In order
to secure sorely needed foreign exchange to carry
on its aggressive adventures and its subversive
activities in other countries, it has engaged in
narcotics trade throughout the world and has
directed an extortion racket against overseas
Chinese whose relatives on the mainland are at
its mercy. In addition to its aggression in Korea
and its defiance of the United Nations itself, it
has supplied the Communist Viet Minh armies
with equipment and advisers and trained Viet
Minh troops on Chinese soil. It has swept aside
traditional local autonomy in Tibet and has car-
ried on an active program of intimidation and
subversion throughout Southeast Asia.

Internally, the Mao regime is a ruthless police
state with all that that implies. Millions of
Chinese have been murdered or have committed
suicide in connection with the phoney land re-
forms and the campaigns against alleged irregu-
larities of private businessmen. Property of
both Chinese and foreigners has been confiscated
without compensation. Personal liberty is a thing
of the past. The "justice" of the so-called peo-
ple's courts is subservient to state policies. Move-
ments of individuals are closely controlled. There
is forced labor on a large scale. Children are
trained and forced to inform on their parents and
friends. There is not even freedom of silence,
since all must be vocal in support of Communist
policies. Mass "brainwashing" is a continuous
process through daily study groups and all media
of communication. The family unit has become
a special target of the Communist system. The
Communists have rewritten history and attempted
to make religion the handmaiden of politics.

In view of all these considerations it is hardly
surprising that the firm policy of the United States
Government is one of strong opposition to the
Chinese Communist regime. We cannot recog-
nize this regime, and we shall continue vigorously
to oppose attempts to accept it in any United Na-
tions organization as representing the Chinese peo-
ple. We earnestly solicit the support of the entire
free world in these policies. We would view with
deep concern a "creeping acceptance" of the
Peiping regime by the world community of
nations.

We further consider that recognition and ac-
ceptance of the Peiping regime would have the
effect of substantially weakening the will to re-
sist Communist expansion on the part of other
Asian people. The nations and people near the
Chinese mainland might under such circumstances
erroneously tend to view communism as "the in-
evitable wave of the future" and more and more
incline their political leanings and economic ac-
tivities to accommodate this conviction. If the
Chinese Communist regime were the only China
to which the 12 million overseas Chinese could

626

look, the Communists would have an important,
readymade "fifth column" throughout Southeast
Asia and in many other nations of the world.
They already have the support of some of these
Chinese, but their following among them has
fallen off markedly since the extortion episode
and as the nature of the regime's excesses has be-
come increasingly apparent.

Those who favor recognition of the Peiping
regime beg the question by urging us to "recognize
reality." We do recognize reality, and much of
it we do not like. But it is not in the American
tradition to confuse the real with the immutable.
We recognize with concern an increase in the in-
cidence of cancer in recent years, but we refuse to
recognize cancer as "the inevitable wave of the
future."

So much for our political policy toward the
Chinese Communist regime. On the military
side it is the view of the United States that the
way to deter aggression is for the free community
to be willing and able to respond vigorously at
places and with means of its own choosing.

Policy of Total Embargo

On the economic side we follow a policy of total
embargo against Communist China, and our ships
are forbidden to call at Communist Chinese ports.
It is realized that every kind of merchandise can-
not be considered to be directly helpful on the
battlefield. We have felt, however, that the maxi-
mum possible economic pressures should be ap-
plied against an aggressor engaged in fighting
and killing the troops of the United States and
other free countries. The aggression in Korea,
so far as Communist China is concerned, will not
be considered over until its troops are all with-
drawn. The Armistice in Korea only stopped
the shooting — doubtless because the Communists
found the fighting unprofitable — but we have seen
no indication so far that the Mao regime has
abandoned its aggressive policies. If the time
should come when the consideration of lessening
economic controls appears appropriate, we shall
still bear in mind the effect of such action in regard
to Communist China's plans to build a large war
potential and its avowed intent to "liberate" all of
Asia and eventually the world.

We have been committed since signing of the
Korean Armistice Agreement last July and the
passage of the United Nations General Assembly
Kesolution last August to seek a Korean Political
Conference. We have patiently sought since
early September to arrange for such a conference
on terms consonant with the Armistice Agreement
and the United Nations Resolution. The Berlin
conference laid plans for a multipower conference
at Geneva on April 26 to consider a Korean settle-
ment. This will not be, as the Communists are
claiming, a five-power conference. Communist
China, far from attending the conference as a

Department of State Bulletin

great power, will not in our view even uttend as a
j government. At Berlin we secured Soviet agree-
j ment to the following statement:

It is understood that neither the invitation to, nor the
' holding of, the above-mentioned conference shall be
! deemed to imply diplomatic recognition in any case where
it has not already been accorded.

The time, place, and composition of the Korean
Political Conference are entirely as we wanted.
We do not fear this conference. As Secretary
Dulles has said.

There is ... no reason why we should refuse to seek
peacefully the results we want merely because of fear
that we will be outmaneuvered at the conference
table. . . . Our cause is not so poor, and our capacity
not so low, that our Nation must seek security by sulking
in its tent.

We will not be prepared at Geneva to allow the
aggressors to achieve at the conference table what
they failed to achieve in battle. This applies not
only to territorial considerations but to any "deal"
which would, as has been suggested in some quar-
ters, trade a United Nations seat and an end to
the trade controls for an agreement by Comnninist
China to stop supplying the Viet Minh. As a re-
cent New York Times editorial put it.

There is neither logic nor profit in paying a bribe to the
Communists to get their worthless promise not to do again
what they had no business doing in the first place.

U.S. Approach to Geneva Conference

Whatever the Communist attitude, we will go
to Geneva in good faith and do our best to achieve
just solutions to the Korean and Indochinese prob-
lems. There is the bare possibility that Soviet
Russia and its Chinese Communist ally may be
sufficiently preoccupied with plans for internal
development to cause them at least to desire a
period of relaxation in both areas on an acceptable
basis. Meanwhile, we are keenly sensible to the
Communist habit of waging war by cease-fire and
do not discount the possibility that they might
use a cessation of hostilities merely as an oppor-
tunity to build up for renewed attacks. In our
view, any settlement in Korea or Indochina would
have to provide effective guarantees against such
a possibility.

Certainly we do not contemplate any action
at Geneva or anywhere else which would damage
the cause of the Government of the Republic of
China. Our policy is to extend moral and mate-
rial support to the Free Chinese, and we have no
intention of letting them down. Their Govern-
ment has been constant in its opposition to lawless
imperialism. We do not forget that the Govern-
ment of China under President Chiang Kai-shek,
during the long years of its lone stand against the
Japanese invader, had several opportunities to
reach a seemingly advantageous accommodation
with the invading power, but refused to do so.
The Chinese Government early recognized the true

April 26, 1954

complexion of the Chinese Communists and re-
fused to compromise with them. Just as we view
the unswerving friendship of the Chinese Govern-
ment with gratitude, we also view its growth in
material strength and political appeal with satis-
faction. We are prepared to lend our continued
support to these ends, but we cannot ourselves
fashion them. This, of course, is primarily a
Chinese responsibility. The military and eco-
nomic progress which has taken place on Formosa
during the past 4 years has been heartening. We
hope and are confident that the progress which
the Free Chinese are making will stand in increas-
ingly favorable contrast to the regimentation and
oppression of the mainland regime.

We will continue military and economic aid
to the Government of Free China. We will con-
tinue to recognize it as the Government of China,
and we will support it as the representative oi
China in the United Nations. We are convinced
that even though it is cut off from the mainland,
it is far more representative of the will of the
Chinese people than is the Peiping regime. It
has conducted itself in the United Nations ably,
responsibly, and with dignity. The free world
can deal with this Government on mutually un-
derstandable terms. It does not employ the
upside-down vocabulary of the Communists.

International politics, like domestic politics, is
in the last analysis an art of the possible. I do
not mean by this that a solution to "the China
problem" is impossible. I mean that the solution
is not likely to be easy or quick. Time, however,
can be on our side. The greatest thing the Com-
munists have to fear is truth. This fear erected
both the Iron Curtain and the Bamboo Curtain.
There is nothing new about communism, and we
know that it is by no means "the inevitable wave
of the future." It has been tried for a long time
and has proven itself totally incapable of making
good on its promises. We are resolved to remain
strong in order to have the time to demonstrate,
beyond the power of curtains to hide, the simple
truth that the systems fashioned by free men can
tap the energies and meet the needs of their peo-
ples incomparably better than can a materialistic
and cynical system of coercion and regimentation.
This trutli must yet make millions free who are
now enslaved, including the Chinese on the
mainland.

The course which we are now pursuing with
respect to China may not be easy or quick, but
we must never for one moment doubt the possi-
bility of reaching our objectives with honor and
with a full sense of our responsibility to this and
to future generations. In this let us not seek the
counsel either of the timid or of the foolhardy.
We feel strongly about the China problem because
it affects not only our security but the very values
by which we live. If we stand honestly on those
principles which have brought us thus far, we
need not fear that we shall have to stand alone.

627

The Middle East in New Perspective

hy Henry A. Byroade

Assistant Secretary for Near Eastern, South Asian and African Affairs '

To me the Middle East is one of the most fasci-
nating parts of the world, and I am convinced all
Americans would find it so. It has been my good
fortune to visit each of its states at least twice, and
at each stop one wishes he could stay long enough
to find out more — about not only the present-day
political and economic problems but the culture
and traditions, the hopes and aspirations of the
people themselves.

The area for which I am responsible abounds
in superlative contrasts. It flaunts diversity of
costumes vmrivaled anywhere else in the world
from the Evzones of Greece, the veiled Tuaregs
of North Africa, the jaunty agal and kaffiyeh of
the desert Arab, and the multicolored jackets of
the Kurd to the Dinka, the Nuwwar and the
Shilluk of the Sudan who wears nothing at all.
The world's richest men and the world's poorest
have lived side by side in this area for ages. The
piercing minaret of the mosque, the church belfry,
the dome of the synagogue attest to the evolu-
tion of the world's loftiest religious faiths. And
where the peasant still plants his seed with the
simplest of wooden tools, airplanes spread insec-
ticides to halt the march of the devouring locust.
Nowhere else in our universe do such extremes
stand in intimate juxtaposition.

One's study of history — or one's visit to the
area — need not be exhaustive or lengthy for the
conclusion that these people, beset as they are by

E resent day embroilments or economic poverty,
ave had a rich life — rich in the things one may
say make life worthwhile.

In fact the strength of our Western civilization
rests to a considerable extent on the foundations
of the ideas and sciences developed in the Middle
East. How could we have modern banks or ac-
counting had it not been for the Arabic numerals
which made rapid calculation possible? Ibn i
Haitham a thousand years ago discovered the
science of optics leading to the use of the micro-
scope. In Iran, the millennial celebration of
Avicenna is taking place — the man who wrote one

' Address made liefore tlie Dayton World Affairs Coun-
cil, Dayton, Ohio, on Apr. 9 (press release 185).

of the greatest collections of medical lore known
before the eighteenth century. Similarly our
moral values, our ideas, and our symbols of cul-
tural intercoui'se to a great extent originated in
the Middle East. If by some ill wind we were
suddenly to be depi'ived of the heritage given us
by the Middle East, we would be deprived of much
of the basis of the advanced state of our present
day civilization.

Yet this area — with its past elements of great-
ness and its promise for the future — is today in-
volved in difficulties to such an extent that it can
truly be called a "trouble area" of the world. And
we as a country are more involved in the problems
of the area than ever before. Wliy is this so?
The answer is simple. We can no longer avoid
these problems even if we would choose to do so —
and we cannot choose to do so — in the interests of
our own welfare and security.

The United States has been thrust into the
Middle Eastern scene suddenly and without ade-
quate national preparation. During most of our
national growth the peoples and problems of the
Middle East have seemed remote from our daily
lives. Because of our expanding continental
boundaries, our eyes were naturally turned toward
our own West until 1900. Our concern was with
national developments and with Latin America.
The United States later involved in two world
conflicts, then focused most of its attention on
Europe and the Far East. For long the Middle
East knew only American missionaries, archeolo-
gists, doctors, and educators.

In this period the United States had a humani-
tarian interest in developments in the Middle
East; it had a few trade interests, but other than
that our positive interests were few. Then, as
now, we had no interests of a colonial nature, no
alliances that gave us direct political responsi-
bilities.

Our position in the Middle East has changed
simply because our world position has changed
and because the world in which we live has
changed, changed to where there is in the East-
West situation for the first time an ever present

628

Department of State BuUetin

and continuous threat to the security of our own
country. The day when we could look at a few
large countries and say "these — and what happens
there — are important to us" is unfortunately gone.
Today one can scarcely think of an area and say it
is safe and secure and we need not concern our-
selves. Least of all can we say that about the
Middle East.

Importance of Area to U.S.

I say least of all the Middle East for many
reasons. First of all — and this must always come
first — are the people of the iVIiddle East itself,
some 65 million souls, whose welfare concerns us
and whose views and policies are influential
throughout the whole Asian-African belt of
restive people. Secondly there is the strategic
position of tlie Middle East from a geographic
viewpoint. History is amply tabled with the
names of conquerors and would-be conquerors who
j have used this crossroads of three continents in
I tlieir search for empires. Every major interna-
tional airline connecting Asia with Europe and
the United States passes through the Middle East.
The Suez Canal is a vital artery of world sliipping,
offering an easy route to South Asia, with its
tremendous sources of manpower and raw mate-
rials, and to the continent of Africa, with its de-
posits of uranium, manganese, chrome and copper.
General Eisenhower has said, "As far as sheer
value of territory is concerned, there is no more
strategically important area in the world." And
thirdly, one must think of the resources of the
area. Without the oil of the Middle East the
industries of our allies would be paralyzed and
our own would be overworked. It is of vast im-
portance tliat sucli resources not come into the
hands of enemies of the non-Communist world.

Out of these three points come the objectives of
American policy in the Middle East. In them-
selves these appear as simple matters : (1) the pro-
motion of peace in the area among the Middle
Eastern states themselves as well as better under-
standing between them and the Western Powers;
(2) a desire to see governmental stability and the
maintenance of law and order; (3) the creation of
conditions which would bring about a rise in the
general economic welfare; (4) the preservation
and strengthening of democracy's growth — not
necessarily in our own pattern, but at least in a
form which recognizes the same basic principles
as the democracy in which we believe; and (5) the
encouragement of regional defense measures
against aggression from outside the area.

Yet the troubles and undercurrents which exist
today in the Middle East make it exceedingly diffi-
cult for us to reach our objectives. Many of the
nations in this area are newly independent and
therefore extremely jealous of their national sov-
ereignty. After years of occupation, or foreign
entanglements of various sorts, tliey are suspicious

April 26, 7954

of all foreign influence. In some cases, the doc-
trine of nationalism has assumed extreme forms.

Some of these states are fearful. In certain
areas the fear of one's neighbor exceeds that from
any other direction. It is a surprise to many
Americans that Soviet encroachment and imperi-
alism is not recognized in parts of the Middle East
as the primary danger. Some of the Middle East
see an enemy much closer at hand. They turn
their thoughts and actions not toward the secu-
rity of the whole region but to security of one
against the other, and they thus present a picture
of disunity of purpose which can be and is being
exploited Toy the agents of the Soviet Union.

And then there is fear even of one's own kind.
Many Middle Easterners look upon their govern-
ments as cold and selfish bodies little interested
in the welfare of the people under it. Therefore,
whom to trust? Whom to believe in? Whom to
work for? The result has been a pattern of po-
litical instability.

Finally, the difficulties are made even greater
by the economic poverty and inequalities in the
region. Those countries which have no mineral
wealth such as oil face tremendous problems in
any effort to improve their well-being. Without
aid of other countries it is impossible for some
of them to even start the necessary development
of their country.

In an effort to assist constructively in the solu-
tion of tlie basic causes of instability in the area
one finds that the political base upon which to
work does not today exist. The all-absorbing
attention of governments and people is at present
focused to too great an extent upon disputes which
lie within the area or between states of the area
and outside powers. The list of these disputes is
appalling. The Anglo-Egyptian dispute over the
Suez Canal base and in the Sudan, the great com-
plex of Arab-Israeli problems, the dispute over
boundaries in the Trucial coast area between Saudi
Arabia and the United Kingdom, tlie Anglo-
Iranian oil dispute. To this could be added many
lesser grievances. One must, to complete the pic-
ture, add on one side the situation in North
Africa between the French and the local popula-
tions in Morocco and Tunisia, and on the other the
difficulties between India and Pakistan, symbolized
by the Kashmir question, because these, while out-
side the Middle East itself, have a bearing upon
the stability of the area as a whole.

In each of these problems the United States is
involved — involved either because our influence is
sought or because we must take a position in the
United Nations or between two friends, or because
we feel a mutually satisfactory solution is so
important to the security of the urea and hence to
ourselves that we must take an active interest.

The Arab-Israeli Situation

I shall only attempt to cover, and that briefly,
one of these specilic situations tonight. I have

629

chosen for this purpose the most fundamental of
all these disputes, the one most detrimental to the
renaissance that seems overdue in the area and the
one which seems least capable of early and satis-
factory solution. I refer to the Arab-Israeli
situation.

You are, of course, aware of the general factors
underlying the establishment of Israel. In lend-
ing their support, the American people acted in
large measure out of sympathy and horror at the
outrages committed against the Jewish people in
Europe during the past 25 years.

The people of the Arab States have cried out
against this action of the United States. The
birth of the tragic Arab refugee problem out of
the Palestine conflict has added to the real and
deep-seated bitterness which replaced, to some
extent at least, an earlier faith in the United
States. The emotions which surround this prob-
lem in the Middle East are so tense that any
immediate or dramatic solution of the problem is
impossible. Even progress toward solution of any
segment of the problem is at best exceedingly diffi-
cult. Yet I am convinced that the United States
must, in its own interests, devote a major effort
toward easing the tensions that have sprung from
this situation. There is today a blockade, one
might say almost an iron curtain, between the Arab
States and Israel. In these circumstances new
generations of youth are being brought up in iso-
lation and cannot judge for themselves the truth of
the propaganda falhng on their ears. It is a
situation which, if not corrected, has in it the seeds
of still more disastrous conflict in the Middle East.

What are the cases of the two sides of this dis-
pute ? Here are the views of David, who migrated
to Israel and is now an Israeli citizen, and the
views of Ahmed, a citizen of an Arab State near
the Israel borders.

THE ISRAELI CASE

David sees in Israel's creation the fulfillment
of the prophecy of Ezekiel (XXXVII, 21), "Be-
hold, I will take the children of Israel from among
the heathen, whither they be gone, and will gather
them on every side, and bring them into their
own land." This lends a mystical force to the
work of David and other founders of Israel.

David declares that the present borders of
Israel, including the additional territory beyond
the line recommended by the United Nations par-
tition resolution of 1947, are the result of the con-
flict provoked by the Arabs' unsuccessful assault
on the new state. Any significant change to the
detriment of Israel in these frontiers, which were
won by Israeli blood, would therefore be to him
unthinkable and unjust.

It follows in his thinking that the refugee prob-
lem was not created by Israel. He maintains the
Arabs of Palestine were induced to flee in large
numbers as part of a deliberate policy of their

leaders, which backfired. He believes they wen-
told that their exodus would assist in crippling
Israel and that after a few weeks of fighting tlicy
would return on the heels of the victorious Aral>
armies. He repeats often the charge that, instead
of caring for their own, the Arab States actually
obstruct refugee resettlement, forcing these un- ]
fortunate people to rot in camps and endeavoring
to use their plight as a vehicle through which to
appeal to world sympathies. By contrast, he says
Israel has opened her doors to over 700,000 immi-
grants. In his eyes, Israel deserves world support
since it has lifted from the world's conscience
the burden of determining what should be done
with Jewish victims of anti-Semitic persecution,
as through heavy sacrifice the people of Israel,
assisted by world Jewry, are integrating tliese
refugees into Israel, creating for them new homes
and means of livelihood. He feels an obligation
to provide a haven for still further Jewish immi-
grants, either to rescue them from persecution or
even perhaps to strengthen Israel by increasing
her population.

David maintains that the possibility of the re-
turn of Arab refugees to Israel in appreciable
numbers no longer exists. Their land has been
taken up. However, he points out that ample land
and water both exist in the Arab States which
could be made available to these Palestinians.
In addition, he states their return would present
an unacceptable security problem, particularly in
the face of the continued hostility of Israel's
neighbors. He says Israel is, however, willing to
assist in their reintegration elsewhere. Certain
blocked funds have already been released to the
Arab refugees, and he says Israel is prepared, by
paying compensation, to contribute economically
to their integration in the Arab countries.

He sa3^s water means life for Israel's economy;
prospects for self-sufficiency depend upon full de-
velopment of available water resources. David
maintains that obstructionist Arab policies and a
dog-in-manger attitude therefore cannot be per-
mitted to stop irrigation plans. In his eyes the
Arab States possess amiile water resources of their
own ; why then should tney lay claim to the meager
streams to which Israel has access?

To David, the soul of Israel is in Jerusalem, a
city to which generations of Jews have longed
to return. To surrender control of new Jerusalem
to any other entity he would see as out of the
question. He notes that the Christian and Mos-
lem holy places, in wdiich the world religious com-
munity has a legitimate interest, are largely
concentrated in the areas now held by Jordan.
He says Israel is willing to give the firmest guaran-
ties with respect to holy places within the territory
under its control and is willing to provide free
access to them but is unwilling to trust the lives
of Jewish citizens to some nonexistent interna-
tional force.

For safety from its threatening neighbors, he

630

Deparfmenf of State Bulletin

says Israel has and must in the future depend
primarily upon its army and its own people. In
the crucial days of 1948, he points out, the United
Nations was unable to prevent six Arab armies
from invading Israel — and that Israel's arms,
courage, and resourcefulness alone turned back
the invaders. At the moment, he sees Israel's
frontiers subjected to increasing pressures which
the United Nations and the world powers have
proved impotent to stop.

This, then, is David's case. He has repeatedly
urged the Arab States to sit down with Israel at
a conference table to conclude peace on the above
basis. The Arabs have persistently refused. They
take an almost diametrically opposed stand on
the same issues.

THE ARAB CASE

The Arab case must be considered in the con-
text of the present emotional ferment in the Arab
world. Ahmed, the Arab, regards the creation
of Israel as another example of imperialist ex-
ploitation. Thus, his reaction against Israel dove-
tails with the growing nationalism of his people
and feeds their resentment and distrust of the
West. Ahmed's instinctive reaction to the alien
element of Israel is to build up a wall against it,
to isolate it, and eventually to absorb or over-
whelm it. Unaffected by the value we place on
time, Ahmed is content to wait, confident that
Israel will eventually meet the fate which befell
the Crusades.

Ahmed concentrates his bitterness on political
Zionism which he regards as ruthless, materialis-
tic, and exemplifying those traits of Western cul-
ture most antipathetical to him. He declares that
Moslems, Christians, and Jews lived in harmony
until this political factor was injected by the Bal-
four Declaration of 1917. Ahmed fears that fur-
ther immigration of Jewish people to Israel will
inevitably result in territorial expansion by Israel,
and his fears are based on statements by Zionist
leaders who look to further immigration.

To Ahmed the creation of Israel may not be jus-
tified on any ethical or legal grounds. For many
centuries the land belonged to his people. A tiny
Jewish minority was well treated. Ahmed sees
no ethnic basis for the claim that the Jews now
returning are descendants of the original inhabi-
tants. He points out that the United Nations
was not granted by the Charter the authority to
deprive a people of self-government or drive them
from their lands.

Ahmed feels that, if Israel bases her claim to
statehood on the 1947 U.N. resolution, she must at
least recognize the boundaries recommended by
the United Nations. Israel cannot in his eyes have
it both ways. He demands that the Security
Council should now force Israel to relinquish her
gains won by the force of arms.

The Arab refugees are seen by him as the end-
product of Israeli terrorism, driven from their

homes by cold-blooded massacres, such as that at
Deir Yassin, where over 200 people died at the
hands of the Irgun. He sees no conceivable justi-
fication for preventing refugees who wish to do so
from returning to their homes as called for by
the United Nations on successive occasions. In
any event, he says the vast sums owed by Israel
to the refugees for confiscated property should be
paid promptly.

Accordingly, Ahmed does not wish his nation
to cooperate with Israel in any matter and he
would like to see third parties prevented from do-
ing so. Whether this policy may also hurt him is
a secondary consideration. The economic boy-
cott maintained reflects this viewpoint. He
maintains that Israel would quickly collapse were
it not for United States public and private aid.
Since the United States sustains Israel, he feels
it must assume responsibility for Israel's actions.

Ahmed believes the city of Jerusalem should
be internationalized in accordance with the resolu-
tions of the United Nations. The fact that Israel
has transferred her capital to Jerusalem only in-
dicates to him disrespect for the United Nations
and the intent to seize additional territory, for
no nation would locate without a purpose its
capital in such an exposed position.

Although Israel talks of peace, he sees it as bent
only on aggression. Proof in his eyes is such acts
as Qibya and the recent attack on Nahhalin, both,
he feels, deliberately planned by the Israel Gov-
ernment. If Israel wants peace, he believes she
must demonstrate this by actions and win the
confidence of her neighbors. As a first step, he
says, Israel must abide by the resolutions of the
United Nations, particularly with respect to
boundaries and the repatriation of refugees. On
this basis, he says the Arab States would be pre-
pared to discuss a settlement.

These are the cases. And as I speak here to-
night the bitterness between David and Ahmed
and their people and the dangers seem, in spite of
all efforts, to increase rather than diminish.

One wonders often in a position such as mine
if he may not be struggling in a situation so set
by the strands of the past that the history of what
will happen, in spite of all of one's efforts, may
have been already written — and thousands of
years ago. Yet even if this be true we must to the
limits of our knowledge and capability do that
which seems best for the interests of the area
itself and our own country.

Special Interests vs. Interests of Majority

Wlien I talk about the interests of our country,
I mean our country as a whole. It is only natural
in a situation such as this that there would be
special groups who feel strongly and attempt in
all sincerity to exert the greatest possible influ-
ence on the policy of your Government. We must
weigh these special interests carefully, but we

April 26, 7954

631

must also shape our policy and so conduct our daily
acts as to represent the interests of the majority
of our people where vital issues affecting our own
security are concerned. I am certain no American
would quarrel with this concept.

"Wliat I allude to is that a pro-Israeli, or a pro-
Arab policy, has no place in our thinking. What
your Government strives to put into effect is a
policy (I quote the President) of "sympathetic
and impartial friendship" to all the states in the
Middle East. Neither side, we believe, at the mo-
ment thinks that this can be true. Both now be-
lieve we are partial to the other. Both tend to
be guided by the Biblical statement: "He that is
not with me is against me." It is difficult, close
to impossible, for them to understand that we can
be friends to both and yet be impartial in our
policies.

It may be difficult and it may take long, but I am
certain you will agree with me that we should so
conduct oui"selves in the area as to clearly demon-
strate that our government has nothing except a
truly objective policy. If we are to be accused of
being "pro" anything, let us make it amply clear
that that prefix can only apply to one thing, and
that is that our policy is first and foremost "pro-
American."

Specific problems of this issue are of great in-
terest such as the refugee situation, border delinea-
tion, matters of compensation, the status of Jeru-
salem, an equitable division of the vital waters of
the Jordan, etc., etc. These are matters which
would cover many times the allotted time I have
here this evening. We will judge each of these
major issues and each daily friction that may arise
on its merits as we see them and work unceasingly
for a reconciliation which we believe to be in the
best interests of all.

I shall only draw two conclusions on this situa-
tion this evening.

To the Israelis I say that you should come to
truly look upon yourselves as a Middle Eastern
State and see your own future in that context
rather than as a headquarters, or nucleus so to
speak, of worldwide groupings of peoples of a
particular religious faith who must have special
rights within and obligations to the Israeli state.
You should drop the attitude of the conqueror
and the conviction that force and a policy of re-
taliatory killings is the only policy' that your neigh-
bors will luiderstand. You should make your
deeds correspond to j'our frequent utterance of
the desire for peace.

To the Arabs I say you sliould accept this State
of Israel as an accomplished fact. I say further
that you are deliberately attempting to maintain
a state of affairs delicately suspended between
peace and war, while at present desiring neither.
This is a most dangerous policy and one which
world opinion will increasingly condemn if you
continue to resist any move to obtain at least a
less dangerous modus vive7idi with j'our neighbor.

The Broader Issues

Turning away from the specific again to broader
issues, you will readily realize that in the issue I
have just described the United States is somewhat
in the "middle." This is also true in many of the
other disputes in the area, some of which I enumer-
ated a few minutes ago. Difficult as the position
of being in the middle may be on the issue I have
just described, it is even more delicate in some of
the other disputes. This is true as some of these
disputes are between friendly states of the area
and major allies of the United States. In such
cases one cannot judge the overall interests of the
United States entirely by what appear to be the
merits of tiie particular issue locally. As an ex-
ample, the North African situation has worldwide
I'amifications. On the one hand we see it affect-
ing interests which France believes vital to her
continued role as a world power and as affecting
her role in matters of great importance to the
United States, such as French Indochina and the
development of an integrated Europe. On the
other, we see, in the struggle for freedom in North
Africa, the seeds of dissension which affect the
position of tlie West in the entire Moslem world,
which spreads from Morocco to Indonesia. All
this is in addition to merits or demerits of the
effect of Frencli policy in the local area. This
illustration of the worldwide ramifications of
local problems could be extended if we should
sul)stitute Egypt and Iran for North Africa and
the Ignited Kingdom for France.

The United States must consider with great
care the implications of tiirowing whatever in-
fluence we may have in such situations to one side
or the other. Such a choosing of sides is often
difficult in any event as, being outside parties, we
can see merits on each side of the issue.

Our role in tlicse cases is to attempt to assist
botii parties to arrive at an arrangement which
both sides would accept as satisfactory. The fact
that there be solutions of this nature to these dis-
putes, under present world conditions, is often
more important to the United States than the terms
of that solution.

This is a role in which one cannot expect
popularity and certainly one which we have not ac-
cepted witli pleasure. Wiien nations of the area
become impatient because the United States does
not more fully support the causes of their own
nationalism, we might ask them to think of the
historical significance of the fact that the United
States, in the span of a few short years, has moved
to where it is playing such a middle role. They
must realize that in the end, however, their long-
range interests cannot be served if the United
States overplays such a role to the point of en-
dangering the great Nato organization that is
today the only organized strength of the free
world against Soviet encroachment.

The analogy was recently put forward by one
of our diplomatic representatives that the pres-

632

Department of State Bulletin

siu'es upon us were similar to a number of people
tugging at one person, the United States, with a
vast number of ropes. Wlien one pulled, there
was a corresponding tightening of the rope held
by another. A wise Arab statesman to whom the
analogy was presented suggested that the only
recourse for the United States was, therefore, "to
divide justice." Without arguing the concept of
whether justice is in fact divisible, we do and will
continue to make an honest effort to respond to the
needs of our friends within the limits of our own
national interests, our commitments, and our re-
sources, but we will also recognize, as did the
Arab statesman, that we cannot please all the
nations and special interests which are calling
upon us.

We have reluctantly inherited a position where
every action or lack of action, every word spoken
or left unsaid, is of significance to one or all of
these nations, and it has become necessary to
weigh carefully the effect in one part of the
world of an attempted action in another. We
must see to it that we weigh these matters care-
fully if we are to live up to the position of leader-
ship in which we have been placed. Those who
feel and speak with emotion on some of these prob-
lems must bear this in mind even if they are not
in positions of responsibility within the govern-
ment. The temper of our people is closely judged
from abroad as well as our daily acts in govern-
ment.

In all this range of problems it would be fool-
hardy to be optimistic. Yet it would be equally
dangerous and quite unwarranted to be totally
discouraged. Some progress is being made and
there are several grounds for encouragement. One
hope that I see is a steady growth of American
awareness of Middle Eastern problems and a de-
termination to see the United States fulfill its
part in resolving those problems. Another hope
IS the general evolution now taking place in the
Middle East, whereby leaders are becoming more
responsive to the demands of public welfare. In
fulfilling these demands there will inevitably be
change amounting to virtual revolution. We are
sympathetic with the motives behind this revolu-
tion and we would like to assist it as much as
possible to run in an orderly productive channel.

I cannot close without asking all to weigh
gravely the world in which we live today. De-
spite the recent events at Eniwetok, it is still hard
for us to realize the unprecedented nature of the
danger recent scientific achievement has brought
upon us and equally hard to realize the prospects
of future well-being that such discoveries, under
better world conditions, could also bring.

When one considers that man is at this very
time in the process of mastering weapons that
could destroy our civilization, one might think
that local political issues around the world should
become less significant. But, when we consider
how these issues could expand step by step, until

April 26, 1954

296233—54 3

the world could be led to war, we can only dedi-
cate ourselves humbly, with the guidance of our
Creator, to strive with renewed energy to see that
they are settled.

Current Legislation on Foreign Policy:
83d Congress, 1st Session

Annual Report of the American Historical Association,

1952. Vol. I, Proceedings. H. Doc. 155, Vol. I,
XXIII, 61 pp.

Tensions Within the Soviet Captive Countries : Rumania.
Prepared at the Request of the Senate Committee
on Foreign Relations by the Legislative Reference
Service of the Library of Congress. Part 2. Sen.
Doe. 70, Part 2, July 28, 1953, VI, pp. 27-51.

Administration of the Trading with the Enemy Act.
Hearings before the Subcommittee to Investigate the
Administration of the Trading with the Enemy Act
of the Senate Committee on the Judiciary on Exami-
nation and Review of the Administration of the Trad-
ing With the Enemy Act Pursuant to S. Res. 245, 82d
Congress, and S. Kes. 47 and S. Res. 120, 83d Congress.
Part 1, February 20, 26, 27, March 5, 11, 12, 19, 20, and
April 1, 1953, pp. 1-717 ; Part 2, November 16 and 17,

1953, pp. 71&-S74.

Baltic States Investigation. Hearings before the House
Select Committee to Investigate the Incorporation of
the Baltic States into the U.S.S.R., under Authority
of H. Res. 346. Part 1, November 30, December 1, 3,
4, 5, 7, 8, 10, and 11, 1953, XII, 678 pp.

83d Congress, 2d Session

Special Study Mission to Southeast Asia and the Pacific.
Report by Hon. Walter H. Judd, Minnesota, Chair-
man ; Hon. Marguerite Stitt Church, Illinois ; Hon.
E. Ross Adair, Indiana ; Hon. Clement J. Zablocki,
Wisconsin. January 29, 1954, VIII, 107 pp.

Refugee Belief Act of 1953. First Semiannual Report of
the Administrator of the Refugee Relief Act of 1953.
January 30, 1954, 15 pp.

Study of Export-Import Bank and World Bank. Hear-
ings before the Senate Committee on Banking and
Currency on S. Res. 25, A Ke.solution to Authorize
and Direct a Thorough Study of the Operations of
the Export-Import Bank and the International
Bank for Reconstruction and Development and Their
Relationship to Expansion of International Trade.
Part 1, January 25-February 2, 1954, 771 pp.

January 1954 Economic Report of the President. Hear-
ings before the Joint Committee on the Economic
Report, piu'suant to Sec. 5 (a) of Public Law 304,
79th Congress. Feb. 1-18, 1954, 899 pp.

To Control the Exportation and Importation of Arms,
Ammunition, and Implements of War. Hearing
before the Subcommittee of the House Committee
on Foreign Affairs on H. R. 6*44, To Control the
Exportation and Importation of Arms, Ammunition,
and Implements of War, and Related Items, and
for Other Pui-poses. February 25, 1954, 25 pp.

Mexican Farm Labor Program, Department of Labor.
Hearings before the Senate Committee on Appropria-
tions on H. J. Res. 461, Making an Additional
Appropriation for the Department of Labor for the
Fiscal Year 1954, and for Other Purposes. March 12,
1954, 21 pp.

633

Report on the Tenth Inter- American Conference

hy WiUiam (J. Bowdter

The Tenth Inter-American Conference met at
Caracas, Venezuela, from March 1 to 28. All the
American Remiblics participated with the excep-
tion of Costa Kica, but provision was made under
which that Government may adhere to the Final
Act. The Conference dealt with an agenda of 28
items coverinir the whole range of inter- American
relations — juridical-political, economic, social, cul-
tural, and organizational matters. It adopted 117
resolutions and 3 conventions. The Conference
was also the forum in which Colombia and Peru
announced the conclusion of a satisfactory agree-
ment on the Haya de la Torre asylum case, a dis-
pute which had been a constant source of tension
between the two countries for the jjast 5 years.

Juridical-Political Matters

One of the principal objectives of the United
States delegation to the Tentli Inter-American
Conference, whicli was headed by Secretary
Dulles,' was to achieve maxinuim agreement among
the American Republics upon a clear-cut and un-
mistakable policy determination against the inter-
vention of international conununism in the
hemisphere, recognizing the continuing threat
which it poses to their peace and security and de-
claring their intention to take effective measures,
individually and collectively, to combat it. The
United States proposed a resolution to this effect
entitled "Declaration of Solidarity for the Preser-
vation of the Political Integrity of the American
States Against International Communist Inter-
vention" (Annex A). The distinguishing feature
of the resolution adopted, which marks a signifi-
cant advance over the stands taken previously in
inter-American meetings at Bogota in 1948 and
Washington in 1951, is the declaration :

That the domination or control of the political institu-
tions of any American State by the international com-
munist movement, extending to this hemisphere the polit-
ical system of an extracontinental power, would

' For tlie list of delegates, see Bulletin of Mar. 15,
1954, p. 383.

constitute a tlireat to tlie sovereignty and political inde-
pendence of the American States, endangering the p«'ace
of America, and would call for a meeting of consultation
to consider the adoption of appropriate action in accord-
ance with existing treaties.

Seventeen of the American Republics voted in
favor of the resolution.- Mexico and Argentina
cliose to abstain, while Guatemala cast the only
negative vote and also took the occasion to re-
nounce its adherence to the anti-Communist reso-
lutions adopted at Bogota and Wa.shington.

^Unendments to this declaration prepared by
other delegations suggested that it did not make
adequate provision tor promoting respect for
Inunan rights, for the effective exercise of repre-
sentative democracy, and for the develojjment of
economic and social well-being as means for com-
bating communism. Otiier proposed amendments
implied concern that application of the declara-
tion might in some way infringe u])on the prin-
ciples of self-determination and nonintervention.
As a means of removing any doubt that the declara-
tion is aimed at preventing, and not promoting,
intervention, the United States proposed inclusion
of a clear statement that the action taken is de-
signed to ])rotect and not impair the inalienable
right of each state to choose its own form of gov-
ernment and economic system. Tlie reaflirmation
of traditional concepts of human rights and funda-
mental freedoms was included in a separate reso-
lution entitled "Declaration of Caracas" (Annex
B), as well as in other actions taken, such as the
Panamanian proposal relating to the abolition of
racial discrimination as a means of fighting
communism.

The topic "Colonies and Occupied Territories
in America" received considerable attention from
a number of the delegations. Three resolutions
were presented and adopted. Two of these, sub-
mitted by Argentina and Brazil, respectively, were
concerned with the general subject of colonialism
in the Western Hemisphere and with the areas
which are the subject of dispute between Ameri-

' Costa Rica subsequently notified the United States of
its support of the resolution.

634

Oeparfmenf of S/o/e Bullefin

can and non-American states. The third, pro-
posed by Ecuador, dealt with the American Com-
mittee on Dependent Territories (Acdt). The
general resolutions for the most part repeat the
views expressed in previous resolutions on this
subject, namely, that colonialism in the Americas
should be promptly brought to an end and that just
claims of American States to territories in dispute
should be supported. The resolution on the Acdt
contemplates the continuation of the Committee,
its convocation being left up to the Council of the
Organization of American States (Oas) "when
circumstances make this advisable." In conform-
ity with the position generally taken on these is-
sues, the United States explained its inability to
go along with confei'ence action upon matters in-
volving so clearly the interests and responsibilities
of friendly governments not represented. The
delegation abstained in the vote on the two general
resolutions and voted against the one on the Amer-
ican Committee on Dependent Territories.

Editor's Note. Following is a list of statements
made during the Caracas conference which ap-
peared in the Bulletin:

"The Spirit of Inter-American Unity" — opening ad-
dress by Secretary Dulles, made on March 4;
Bulletin of March 15, p. 379.
"Intervention of International Communism in the
Americas" — statements made by Secretary Dulles
on March 5, March 11, and March 13; Bulletin
of March 22, p. 419.
"Pan-American Economic Relations" — statements
made by Secretary Dulles and Assistant Secre-
tary Waugh on March 10; Bulletin of March 22,
p. 426.

In addition, a news conference statement made
by Secretary Dulles on March 16 after his return
from Caracas appeared in the Bulletin of March 29,
p. 466.

Under the chapter of the agenda dealing with
juridical-political matters, six instruments were
submitted to the Conference for review and ap-
proval. Due to the exigencies of time, the Com-
mittee handling these items was able to complete
action on only two of them : Convention on Dip-
lomatic Asylum and Convention on Territorial
Asylum. Each of these conventions was opened
for signature at Caracas, but the United States, in
view of its traditional position regarding the prac-
tice of diplomatic asylum and considering a treaty
on the subject of territorial asylum to be unneces-
sary, did not sign either instrument. The other
instruments — American Treaty of Pacific Settle-
ment, Statute for an Inter-American Court of
Justice, Statute of the Inter- American Peace
Committee, and Protocol to the Convention on
Duties and Rights of States in the Event of Civil
Strife — were returned to the Council of the Oas
variously for consultation with the governments,

study by the corresponding technical organ, and
appropriate action by the Council itself. In re-
turning the proposed revision of the Statute of the
Inter- American Peace Committee to the Council,
the Conference confirmed the continuation of tlie
Committee and applauded its fruitful work in the
interest of the peace of the continent.

Economic Matters

From the speeches delivered in the opening de-
bate it was evident that economic issues were of
major importance to the Latin American dele-
gates, particularly such problems as public financ-
ing of economic development; raw material prices
and terms of trade; stability of, and access to,
export markets; and technical cooperation. In
many of the proposals introduced by Latin Ameri-
can delegations, it was clear that the United States
was expected to provide assurances or make com-
mitments which it was thought would provide so-
lutions to these problems. The United States was
not in a position to accept certain of those pro-
posals, owing to the incompleteness or lack of
clarity in the terminology, their one-sided provi-
sions, or the fact that U.S. policy had not been
firmly established in some fields.

One of the principal accomplishments in the
economic field, as expressed by Assistant Secretary
Holland, was the frankness and clarity with
which the delegations presented their positions on
various problems and the understanding achieved
with respect to their respective viewpoints. He
also pointed out that accords were being reached
today on issues that had been in dispute in past
years, and that the period ahead would yield agree-
ment on problems for which solutions could not be
found today. With a view to examining further,
on the basis of new studies and developments, the
possibility of achieving fuller agreement on jirac-
tical measures for solving these problems, the
Conference decided to convene a meeting of ]\Iin-
isters of Finance or Economy during the last quar-
ter of 1954 in Rio de Janeiro, which will also be
the IV Extraordinary Session of the Inter-Ameri-
can Economic and Social Council (Ia-Ecosoc).

In addition to this decision, the Conference
adopted 27 other resolutions relating to economic
development, private investment, public financing
of economic development, prices and terms of
trade, trade restrictions, agricultural surpluses,
agrarian reform, technical assistance, the eco-
nomic resources of the continental shelf, and the
future work of the Inter- American Economic and
Social Council. In some of tlie more important
resolutions on these subjects, the Tenth Confer-
ence took the following action :

1. Regarding foreign private capital, recom-
mended that the American governments maintain
and adopt suitable economic measures to attract
such capital ;

April 26, 1954

635

2. Rejiarding trade in strategic materials, rec-
ommended that consideration be given to the effect
of decisions relating to these materials on the
economies of tlie American States and that pro-
cedures be introduced permitting the exchange of
views in order to study any practical measures
relative to the adverse effects of such decisions;

3. Regarding public financing of economic de-
velopment, recommended tliat the governments
suggest to existing public-financed institutions
that they give special consideration to measures
to increase effectively tlieir operations in the field
of economic development in Latin America;

4. Regarding technical cooperation, decided to
consider the Oas Program "as an activity of a con-
tinuing nature'' and to urge the participating
governments to nuxintain and possibly increase
their present level of contributions ;

5. Regarding economic resources of the con-
tinental shelf, requested the Council of the Oas
to convoke a special conference in 1955 to consider
as a whole the different juridical and economic
aspects of this question ; and

6. Regarding tlie Inter- American Economic and
Social Council, made a series of suggestions with
respect to its internal operations aimed at mak-
ing it a more effective instrument for dealing with
economic and social problems of the American
States.

In the economic field the United States voted
against the resolutions on Reductions of Restric-
tions on Inter-American Trade, and Terms of
Trade and Prices; abstained on tliose dealing with
Agricultural Surpluses, Agrarian Reform, and
Economic Development, and Taxes on Passenger
Fares in the Caribbean and Central America.
The United States objection to the resolution on
inter-American trade was based on tlie one-sided
nature of tlie recommendation. On the terms of
trade and prices resolution the United States ob-
jection was directed at the section referring to "an
equitable level of remunerative prices to permit
a balance in terms of trade," which seemed to
imply a commitment whicli tlie United States
could not accept. U.S. abstention on the last
three of the resolutions listed above was explained
as follows:

1. In the case of agricultural surpluses, the
variable nature of the problem made it necessary
for the United States not to commit itself defin-
itively on a matter currently under intensive study
in the executive and legislative branches of our
government ;

2. On agrarian reform, the resolution, in focus-
ing solely on redistribution of land, followed too
narrow an approach to this broad and important
subject; and

3. On the question of taxes on passenger fares,
that this is a matter which, for the United States,
the Congress must decide.

Social Matters

The Conference considered six broad topics in
the social field, covering social aspects of eco-
nomic development, human rights, housing, coop-
eratives, rural exodus, and social welfare.
Twenty-two resolutions relating to various aspects
of these topics were adopted.

The discussions revealed general awareness of
the social problems accompanying economic de-
velopment and of the need for governments and
international agencies to give proper attention to
measures in the fields of health, housing, educa-
tion, and social welfare in planning and executing
economic development progi'ams. Resolutions
adopted on this subject, as well as on the related
topics of rural migi'ation and social welfare work,
reflect a recognition of this need and urge the gov-
ernments and the appropriate organs of the Oas
through training courses, seminars, specialized
conferences, and teclinical studies to give increased
attention to the development of basic social serv-
ices in rural areas and the training of personnel
for planning and administering sound programs.
In tlie field of labor, an important aspect of eco-
nomic development, the resolutions adopted de-
clare the intention of governments to continue to
encourage the development of free and genuinely
democratic labor unions; to recommend periodic
information courses for workers to provide them
with a knowledge of tlieir rights and duties; and
to urge closer coordination between tlie Organi-
zation of American States and the International
Labor Organization.

Tlie widespread interest in the Americas in hous-
ing and in cooperatives as a means for raising eco-
nomic and social standards was manifest in the
various proposals adopted for encouraging further
development in tlicse fields. Measures recom-
mended for improving housing include the conven-
ing of meetings of iiousing experts to advise Ia-
Ecosoc on activities to be carried out ; the appoint-
ment of a committee of three experts to worlc with
Ia-Ecosoc on a continuing basis; and the estab-
lishment of the present Inter- American Housing
Center on a permanent basis. Studies were re-
quested on the use of standardized construction
materials and the effects which the establishment
of a private inter-American bank for housing
would have on the problem of low-cost housing.
Witli respect to cooperatives, the Conference re-
quested the Pan American Union to make studies
covering cooperative legislation and experience
gained in the cooperative field and to provide,
within its financial resources, technical assistance
to the governments through training of leaders in
the cooperative movement, regional seminars, and
expansion of its secretariat services in connection
with rural credit, consumer, low-cost housing, and
multiservice cooperatives.

In addition to the Declaration of Caracas and
the racial discrimination resolution referred to
above, the Conference adopted certain resolutions

636

Department of Stale Bulletin

regarding human rights. One of tliese, entitled
"Strengthening of the System for the Protection
of Human Eights," appeared to the U.S. delega-
tion to give appropriate attention to the point of
view that the best methods for promoting respect
for human rights are often found in education
and example rather than through legal compul-
sion. In this resolution, various steps were
proposed which governments might take to en-
courage observance of, and wider dissemination
of information on, basic rights and duties of man.
In the same resolution, the Pan Anierican Union
was requested to obtain periodically from the gov-
ernments information relating to the progress
made in promoting human rights, to effect ex-
change of pertinent legislation among the Ameri-
can States, and to undertake studies in comparative
law concerning such legislation, giving preference
to those rights centering around freedom of ex-
pression. A separate resolution, introduced by
Uruguay, requesting the Council of the Oas to
study the possibility of creating an Inter-Ameri-
can Court for the Protection of Human Rights,
was opposed by the United States, on the grounds
that such a court is premature and does not con-
stitute an effective instrument for advancing the
objective of greater respect for human rights.

Cultural Matters

Action of the Tenth Conference in the cultural
field centered primarily on three important as-
pects : revision of the Convention for the Promo-
tion of Inter-American Cultural Relations, the
need for greater efforts to promote general educa-
tion, especially the eradication of illiteracy, and
guidance to the organs of the Oas dealing with
cultural matters in the development and execution
of their programs.

Revision of the Convention for the Promotion
of Cultural Relations marked a significant step
in the field of cultural relations and educational
exchange. This convention, which is concerned
with the exchange of students and professors, was
sponsored by the United States at the Buenos
Aires conference in 1936. Experience with its
application since that time has demonstrated that
many of its detailed provisions for the selection
and support of exchangees ai'e excessively rigid
and cumbersome. Revision of the convention was
directed, therefore, at introducing greater flexibil-
ity in the awarding of fellowships and grants.
Thus, for example, allowance is made for the par-
ties to carry out exchange programs through direct
bilateral agreements. The procedures for select-
ing exchangees are simplified and the financial re-
sponsibilities of the participating governments
are specified more precisely and realistically. A
new provision was also introduced into the conven-
tion entrusting the Pan American Union with the
responsibility for compiling and circulating an-
nually to the states members of the Gas reports on

the nature and extent of the participation of each
in exchange programs. All the governments rep-
resented at Caracas signed the revised convention.

In the field of education the Conference recog-
nized that the eradication of illiteracy is of the
utmost importance and requested that special at-
tention be given to this matter in the cultural ac-
tivities for which the Council of the Oas is directly
responsible as well as in the Oas Technical Coop-
eration Program. The governments were likewise
urged to intensify their national campaigns
against illiteracy, endeavoring to coordinate them
with the activities of the Oas. In other resolutions
bearing on education the Tenth Conference rec-
ommended to the governments the establishment
of specialized educational centers for rural areas,
requested the Committee for Cultural Action to
undertake studies on vocational education in the
American States and on the equivalence of aca-
demic degrees, commended the Pan American
Union for the work it has done in organizing semi-
nars in education and urged the governments to
lend their support to development of demonstra-
tion libraries. The Conference also endorsed the
idea that there should be held a meeting of Minis-
ters and Directors of Education simultaneously
with the next meeting of the Cultural Council and
requested the Cultural Council to consider the de-
sirability of holding periodic meetings of rectors,
deans, and professors. Various other resolutions,
including a laossible convention on exchange of
j)ublications, participation in the 1946 Inter-
American Copyright Convention, and support of
tlie work of the Pan American Union in literary
publications, the United States was not able to
support for a variety of reasons.

A significant action of the Tenth Conference
was to trace the guide lines which the govern-
ments, the Council of the Oas and the (jultural
Council should follow in developing and carrying
out inter- American cultural programs. The "Dec-
laration on Cultural Cooperation" sets forth the
areas in the educational, scientific, and cultural
fields in which they are urged to intensify their
efforts. In a resolution entitled "Inter-American
Cultural Organizations" the Conference recom-
mended to the governments a greater utilization
of the cultural organs of the Organization of
American States, to the Council of the Oas an
increased effort to improve the functioning and
coordination of its cultural organs, and to the
Inter-American Cultural Council a series of
points, emphasizing coordination and the estab-
lishment of priorities, whicli it should bear in
mind in developing its program.

Organizational Matters

In a speech delivered during the opening debate
the Secretary General of the Oas, Dr. Alberto
Lleras, announced his decision to resign his post
and went on to make a penetrating analysis of
the Orsranization of American States and its

April 26, 1954

637

future development. In particular, he singled out
the tendency of the Council of the Oas to become
absorbed in trivia and to avoid matters of sub-
stance, a trend which was at times evidenced dur-
ing the preparatory period for the Tenth Con-
ference. Tlie address paved the way for one of
the more important resolutions to emerge from the
Caracas meeting: Resolution XLVI entitled "Mat-
ters Assigned to the Council of the Organization
of American States."' The resolution, based
largely on suggestions which was proposed by the
United States, is designed to strengthen the Coun-
cil as the permanent executive body of the Organi-
zation by specifically assigning to it several
important functions.

Consideration was also given by the Conference
to the functioning and composition of two other
organs: the Inter-American Juridical Committee
and the Committee for Cultural Action. Follow-
ing the recommendation of the Council of Jurists,
the Conference decided that the Juridical Com-
mittee should hold annual sessions for a fixed pe-
riod of time (3 months) and that it should, as ap-
propriate, make greater use of the Department of
International Law of the Pan American Union
in furnishing background material and preparing
preliminary studies. The Conference rejected the
concept that the members of the Committee should
have no other duties than those pertaining to the
Committee, but did recognize that it was essential
that they devote themselves exclusively to the
work of the Committee while it is in session. The
following nine countries were selected to member-
ship in the Juridical Committee: Argentina, Bra-
zil, Chile, Colombia, Dominican Republic, Mexico,
Peru, United States, and Venezuela. Tlie Con-
ference did not enter into a detailed study of the
functioning of the Cultural Action Committee,
limiting its action to entrusting such a study to the
Council of the Oas in consultation with the Inter-
American Cultural Council and to establishing
Mexico City as the seat of the Committee. Brazil,
Cuba, Haiti, Mexico, and the United States were
elected to membership in the Committee.

In other decisions on organizational matters the
Conference revised the Statute of the Inter-
American Commission of Women, adopted several
resolutions relating to the civil, political, and eco-
nomic rights of women, and entrusted to the Coun-
cil of the Oas the study of administrative and
fiscal policy of the Organization proposed by
Brazil.

Quito, Ecuador, was designated as the site for
the Eleventh Inter- American Conference, which,
in accordance with the charter of the Organiza-
tion, is to be held in 5 years.

• Mr. BoivdJer, author of the ahove article, is
a foreign-affairs officer in the Office of Regional
American Affairs and served a^ adviser to the
U.S. delegation to the Tenth Inter-American
Conference.

ANNEX A

DECLARATION OF SOLIDARITY FOR THE PRESER-
VATION OF THE POLITICAL INTEGRITY OF THE
AMERICAJV STATES AGAINST INTERNATIONAL
COMMUNIST INTERVENTION

Whereas :

The American republics at the Ninth International
Conference of American States declared that international
communism, by its anti-democratic nature and its inter-
ventionist tendency, is incompatible with the concept of
American freedom, and resolved to adopt within their
respective territories the ujeasures necessary to eradicate
and prevent subversive activities ;

The Fourth Meeting of Consultation of Ministers of
Foreign Affairs recognized that, in addition to adequate
internal measures in each state, a high degree of inter-
national cooperation is required to eradicate the danger
wliich the subversive activities of international commu-
nism pose for the American States ; and

The aggressive character of the international communist
movement continues to constitute, in the context of world
affairs, a special and immediate threat to the national
institutions and the peace and security of the American
States, and to the right of each State to develop its cul-
tural, iKJlitical. and economic life freely and naturally
without intervention in its internal or external affairs
hy other States,

The Tenth Inter-Amemcan Conference

Condemns :

The activities of the international communist movement
as constituting intervention in American affairs ;

Expresses :

The determination of the American States to take the
necessary measures to protect Iheir political independence
against the intervention of international communism, act-
ing in the interests of an alien despotism ;

Reiteb.^tes :

The faith of the peoples of America in the effective exer-
cise of representative democracy as the best means to
promote their social and political progress ;

and
Declares :

That the domination or control of the political institu-
tions of any American State by the international commu-
nist movement, extending to this hemisphere the political
system of an extracontinental power, would constitute a
threat to the sovereignty and political independence of the
Anierican States, endangering the peace of America, and
would call for a meeting of consultation to consider the
adoption of appropriate action in accordance with exist-
ing treaties.

II

Recommends :

That without prejudice to such other measures as they
may consider desirable si)ecial attention be given by each
of "the American governments to the following steps for
the purpose of counteracting the subversive activities of
the international communist movement within their re-
spective jurisdictions :

1. Measures to require disclosure of the identity, ac-
tivities, and sources of funds, of those who are spreading
propaganda of the international communist movement
or who travel in the interests of that movement, and of
those who act as its agents or in its behalf : and

2. The exchange of information among governments to
assist in fultilling the purpose of the resolutions adopted
by the Inter-American Conferences and Meetings of Min-
isters of Foreign Affairs regarding international
communism.

638

Deparimeni of Sfafe Bulletin

Ill

This declaration of foreign policy made by the American
republics in relation to dangers originating outside this
hemisphere is designed to protect and not to impair the
inalienable right of each American State freely to choose
its own form of government and economic system and to
live its own social and cultural life.

of the Inter- American Defense Board and under
terms of the Mutual Security Act of 1951, as
amended, which authorized a program of military-
grant assistance for Latin America.

Eight other American Republics are already
participating in this program, which is aimed at
promoting the defense of the hemisphere.

ANNEX B

DECLARATION OF CARACAS

The Tenth Inter-American Conference

Reaffirms :

The fundamental principles and aims of the Charter
of the Organization of American States, the American
Declaration of tlie Rights and Duties of Man, the Uni-
versal Declaration of Human Right.s, and the resolutions
of the Organization that refer to those principles and
aims,

Reiterates :

Recognition of the inalienable right of each American
state to choose freely its own institutions in the effective
exercise of representative democracy, as a means of pre-
serving its political sovereignty, achieving its economic
independence, and living its own social and cultural life,
without intervention on the part of any state or group of
states, either directly or indirectly, in its domestic or
external aifairs, and, particularly, without the intrusion
of any form of totalitarianism.

Renews :

The conviction of the American States that one of the
most elfective means of strengthening their democratic
institutions is to increase respect for the individual and
social rights of man, without any discrimination, and
to maintain and promote an efEective policy of economic
well-being and social justice to raise the standard of liv-
ing of their peoples ; and

Resolves :

To unite the efforts of all the American States to apply,
develop, and perfect the above-mentioned principles, so
that they will form the basis of firm and solidary action
designed to attain within a short time the effective realiza-
tion of the representative democratic system, the rule of
social justice and security, and economic and cultural
cooperation essential to the mutual well-being and pros-
perity of the peoples of the Continent ; and

Declares :

This resolution shall be known as the "Declaration of
Caracas".

Negotiations witli Nicaragua
Regarding Military Assistance

Press release 202 dated April 17

Tlie Departments of State and Defense an-
nounced that, as a result of discussions with
Nicaraguan officials which began in January of
this year, negotiations will be initiated April 19
in Managua with the Government of Nicaragua,
looking toward the conclusion of a bilateral mili-
tary assistance agreement between the Unitetl
States and Nicaragua. Negotiations are being
carried out in keeping with the Inter-American
Treaty of Reciprocal Assistance and the planning

U.S.-Canadian Arrangements
for Continental Air Defense

Statement hy Charles E. Wilson
Secretary of Defense ^

Because of the possibility of aggressive air at-
tacks against North America, the Canadian and
United States Governments after the Second
World War continued the cooperative arrange-
ments for the defense of North America which had
been brought into effect during the war. Since
that time, there have been established in both coun-
tries fully manned radar screens for the detection
of a potential enemy, and installations for inter-
ceptor aircraft and antiaircraft weapons. At all
stages, planning has been carried on between the
two countries on a joint basis, and consultations
and cooiseration at all levels have been constant
and completely satisfactory.

For some time now, the Canadian and United
States Governments have been appraising the air
defense system to define the steps required to
strengthen our defenses in the light of recent ad-
vances in the destructive capabilities of atomic
weapons against targets in our two countries.

For the past 4 years, work has been going on at
high priority on the construction of a large and
costly radar chain which is required not only to
detect enemy bombers but also to control fighter
aircraft engaged in the task of interception. This
radar chain is known as the Pinetree Chain.

Long before the Pinetree project was approach-
ing completion, the military planners of the two
countries were engaged in an intensive study of
what further steps might be desirable and prac-
ticable. In October 1953, a team of military and
scientific advisers representing botli coiuitries rec-
ommended tliat additional early warning sliould
be provided In' the establishment of a further radar
system generally to the north of the settled terri-
tory in Canada. The report of this team was con-
sidered by the Chiefs of Staff of each country later
that same month. At a meeting in Washington in
November 1953, the Canadian representatives in-
formed the United States authorities tiiat the
Canadian Government was prepared to proceed

' Released to the press by the Department of Defense on
Apr. 8; released simultaneously by the Canadian
Government.

April 26, 7 954

639

immediately with the necessary surveys and siting
for the proposed new early warning radar system.
This work is already well advanced.

There are many difficult j^roblems to be solved
in establishing this additional early warning sys-
tem in the Canadian North. The system will ex-
tend over thousands of miles and its survey will
involve the examination of a gi'eat number of
possible sites. Much of the ground is inaccessible
except by tractor train and helicopter. In many
areas extreme temperatures are confronted for
several months of the year. Many technical prob-
lems, including the interference of the Auroral
Belt with electronic devices, have had to be over-
come. In overcoming the various technical prob-
lems involved the United States Air Force is woi'k-
ing closely with the Eoyal Canadian Air Force.

It is obviously just as important to have early
warning of aircraft approaching target areas in
Nortli America from over the sea as from over
Northern Canada. For this reason, the United
States Government is extending the early warn-
ing barrier across the northeastern and northwest-
ern seaward approaches to North America. The
Alaska radar system is coordinated with those in
Canada and the continental United States, and
the development of airborne radar is well ad-
vanced.

In addition to these measures of common con-
cern, both countries are working continuously to
improve the air defense installations in the vicinity
of the major target areas. Here too, cooperation
between the United States and Canadian air de-
fense commanders is close, and unidentified air-
craft are investigated by the most immediately
available interceptor force, whether Canadian or
American.

The defense of North America is part of the
defense of the North Atlantic Region to which
both Canada and the United States are pledged
as signatories of the North Atlantic Treaty. Thus.
the cooperative arrangements for the defense of
this continent and for the participation of Cana-
dian and United States Forces in the defense of
Europe are simply two sides of the same coin, two
parts of a worldwide objective, to preserve peace
and to defend freedom.

Appointments to International
Fisheries Commissions

The "VA^iite House on April 13 announced the
following appointments (Department of State
pressrelease 194) :

John L. Farley to be U.S. Commissioner on the
Inter-American Tropical Tuna Commission.

Arnie J. Suomela to be U.S. Commissioner on
the International Commission for the Northwest
Atlantic Fisheries.

Arnie J. Suomela to be a member on the part of

the U.S. of the International Pacific Salmon
Fisheries.

Georgescu Boys Freed

Press release 191 dated April 12

Tlie Department of State announced on April
12 that the young Georgescu boys, Constantin and
Peter, have left Rumania to be reunited with their
American parents, Mr. and Mrs. Valeria C. Geor-
gescu, after a separation of almost 7 years.'

Tlieir departure from Rumania came about as
a result of a long series of approaches by the De-
partment in which President Eisenhower and Sec-
retary Dulles took a personal interest. They left
Bucharest April 10 accompanied by Mr. David
Mark, Seconcl Secretary of the U.S. Legation staff.
Their father met them on April 12 in Munich.

Indonesia Becomes Member
of Fund and Bank

The Republic of Indonesia on April 15 became
a member of the International Monetary Fund
and the International Bank for Reconstruction
and Development when the articles of agreement
of these institutions were signed in Washington
on behalf of tlie Government of Indonesia by
Moekarto Notowidigdo, Indonesian Ambassador
in Washington.

The quota of the Republic of Indonesia in the
International Monetary Fund is $110 million and
its subscription to the capital stock of the bank
is 1,100 shares with a total par value of $110
million.

Fifty-six nations are now members of the fund
and of the bank. Admission of Indonesia brought
the total of members' quotas in the fund to
$8,848,500,000. The total subscribed capital of
the bank is now $9,148,500,000.

International Bank Makes
Loan to Norway

The International Bank for Reconstruction and
Development on April 8 made a loan of $25 mil-
lion to Norway to help carry forward economic
development. The expansion of Norway's mer-
chant fleet is one of the most important parts of
this development and the loan will make available
part of the foreign exchange needed for the pur-
chase of merchant ships being built in foreign
shipyards.

' For an earlier statement by the Department regarding
the Georgescu case, see Bulletin of June 8, 1953, p. 815.

640

Deparfmenf of Sfafe Bultetin

This is the bank's first loan to Norway. It is
for a term of 20 years and bears interest of 4%
percent per annum, including the statutory 1
percent commission whicli is allocated to the bank's
special reserve. Amortization will begin in Octo-
ber 1957.

The Norwegian Government has laid down the
main directions of its economic policy for the next
few years in the form of an investment program
covering the period 1954 to 1957. Its general
aim is to maintain a high level of employment
and to raise living standards further by increas-
ing both agricultural and industrial output.
Since the Norwegian economy is based primarily
on private enterprise, this program represents
more an indication of general objectives than a
plan to be followed in detail. Particular emphasis
is being laid upon export industries, which account
for more than one-third of the country's total
production, and upon shipping, which is one of
Norway's major sources of foreign exchange
earnings.

During the year 1954 more than one-fifth of
total Norwegian investment will be in shipping.
In general, Norwegian shipowners have sufficient
resources and credit in their own curi'ency to fi-
nance this expansion. For the Norwegian econ-
omy as a whole, however, the payments to be made
abroad for ships being built in foreign yards im-
pose a heavy burden. Largely as a result of these
payments, Norway will need additional amounts
of foreign exchange estimated at the equivalent
of $52 million in 1954. The bank's loan will cover
$25 million of this amount; the remainder will
come from Norway's own resources or from
further foreign borrowing.

Norway is the third maritime nation of the
world. Its merchant fleet is modern and highly
efficient; about two-fifths of the tonnage is less
than 5 years old and more than three-quarters is
diesel driven. The bulk of the vessels operate in
cargo liner service or work on long-term charter
to oil companies, and only a minor number are
tramp ships. Operating costs compare favorably
with fleets of other nations. Although only about
3^ percent of the employed population is directly
engaged in shipping, net foreign exchange re-
ceipts from shipping services pay for some 20
to 30 percent of imports. With the addition of
ships now on order, and allowing for replace-
ments, the merchant fleet is expected to be
increased by one-quarter by the end of 1957.

Norway has developed rapidly since the end
of World War II. As a result of large invest-
ments, war losses have been made good and the
country now has considerably more capital equip-
ment that it had before the war. Tlie merchant
fleet is about one-third larger, the fishing and
whaling fleet has been restored and modernized,
agriculture and forestry have been mechanized to
a great extent, and industries and powerplants
have been expanded.

The country's physical and human resources
l^rovide a broad basis for further growth, but this
growth depends on an adequate supply of capital.
Because of its small population, Norway's capital
resources are limited and for more than a century
the country has been a net importer of capital.
These funds have come traditionally from the pri-
vate capital markets of the United Kingdom and
continental Europe. Since World War II the in-
flow of foreign capital has come largely from of-
ficial American aid and private shipping loans.
At the present time, lack of sufficient private for-
eign capital, together with the termination of
American aid, led Norway to seek International
Bank financing.

FOA Makes Allotments
to France and Spain

The Foreign Operations Administration on
April 5 announced new allotments of $13,500,000
for Spain and $15,850,000 for France in mutual-
security funds.

The new funds for Spain, in addition to $11
million allotted last November,^ are made avail-
able under an $85 million defense support program
for Spain authorized by Congress for the current
fiscal year. This program is designed to
strengthen the economic foundation for the joint
efi^ort of the two nations to build up the military
defenses of Spain. The $13,500,000 allotment
will be used by Spain for the purchase of indus-
trial and agricultural commodities and equipment
to meet requirements of the Spanish economy.

The allotment for France, which will finance the
procurement of cotton and tobacco, has been made
under the provisions of Section 550 of the Mutual
Security Act of 1953. This section provides that
between $100 million and $250 million of mutual-
security appi'opriations for the current fiscal year
shall be used to finance surplus United States agri-
cultural commodities to be sold to friendly coun-
tries for local currencies.

The local currency proceeds may be used by Foa
for any of several purposes specified by Section
550. In this case, the equivalent of $10,850,000 in
French francs will be used for offshore procure-
ment by the United States of military equipment
and supplies produced in France. The remaining
$5 million equivalent in francs will be invested in
economic development of French dependent terri-
tories in Africa.

Foa has now made available a total of $202,650,-
000 under Section 550 to finance such surplus com-
modity sales to the United Kingdom, Federal
Republic of Gennany, Norway, Cliina (Formosa) ,
Finland, Yugoslavia, Israel, Spain, Afglianistan,
Ja]ian, and France.

' BUI.LETIN of Nov. 16, 1953, p. 676.

April 26, J 954

641

The United States and Charter Review

hy David W. Wainhxmse

Deputy Asfiintant Secretary for Urdted Nations Affairs '

Since you may have already arrived at some
conclusions regardinjj charter review, I am going
to ask your indulgence if I go back a few steps to
some of the prior considerations out of which con-
clusions grow.

I ask your indulgence in the hope that you may
see in my remarks some touchstones against which
to test your own thinking. I will therefore try to
state some of the general considerations which
underlie the State Department's thinking on tliis
subject.

I will not attempt to discuss in any detail the
particular problem areas which are of especial in-
terest to the Department of State. I am sure you
are fully aware that Secretary Dulles in his testi-
mony on January 18 before the subcommittee of
the Senate Foi-eign Relations Committee ^ identi-
fied some of the issues, such as universality of
membership, security arrangements, voting in the
Security Council and the General Assembly, the
development of international law, and the ques-
tion of domestic jurisdiction, which may come
before any review conference and thereby merit
study.

Any final positions taken by the United States
Government must await the crystallization of the
view of the American people. There will have to
be a careful assessment of the attitudes of other
member states. We will rely heavily upon the
advice of Congress. And certainly the views and
recommendations of numerous private organiza-
tions and institutes such as yours devoting their
attention to a study of charter review problems
will receive our most careful consideration. The
definitive conclusions will not come until the dem-
ocratic processes have resulted in a more recog-
nizable consensus within our country.

You will note that I use the expression "review
of the Charter" rather than revision or amend-
ment. I stress the word review because we should

' Address made before the Institute on United Nations
Charter Review at the University of Minnesota, Minne-
apolis, Minn., on Apr. 10 (press release 186 dated Apr. 9).

' Bulletin of Feb. 1, 1954, p. 170.

not start on the premise that the charter is to be
amended in a certain way, or necessarily amended
at all. The U.S. representative made this per-
fectly clear at the Eighth General Assembly.

The General Assembly will hold its tenth ses-
sion in 1955. Present indications are that a
majority of the United Nations membership an-
ticipate that a charter review conference will be
held. A large majority at the recent Eighth As-
sembly session in 1953 recommended to the United
Nations Secretariat that it complete certain pre-
paratory work prior to the review conference.
This is to consist of the publication of some un-
published documents of the original San Francisco
conference in 1945, a survey of the precedents set
by the United Nations organs in their operations
under the charter, and a comprehensive index to
the legislative history of the charter.

Justification for Charter Review

Secretary Dulles said in his speech of January
18 that the United States "expects to favor the
holding of a review conference." It seems to me
that the case for charter review is clearcut for
two principal reasons :

First, it is a matter of simple good faith for
the United States to support the holding of the
review conference. At San Francisco in 1945
some provisions were adopted over rather strong
opposition on the part of many, particularly the
smaller states. They adopted the Charter on the
assumption that they would be given an oppor-
tunity to reexamine the charter provisions after
a 10-year trial. At San Francisco the United
States indicated that it would support the hold-
ing of such a conference after a period of 10 years.
If a majority of the member states desire a
charter review conference, we should certainly
support it.

The second reason involves American leadership
in the setting of contemporary world politics.
The world has been divided by "iron" and "bam-
boo" curtains. There is a trend toward bipo-

642

Department of State Bulletin

larity. Almost 9 years after the end of World
War II, we have still not concluded the principal
treaties of peace and we still suffer from the legacy
of destruction and loss of manpower. The Com-
munists have enslaved millions and there is the
constant threat of enslaving millions more. New
states have arisen. Former enemy states ai-e mov-
ing back into the family of nations. Others, such
as India, are achieving greater stature in inter-
national affairs. Within the United Nations the
charter assumption of the unity of the Great
Powers has broken down with the result that the
role of the Security Council has been eclipsed and
the role of the General Assembly enhanced. And
above the whole scene hovers the new and awesome
character of modern weapons of warfare. We do
not feel that these forces can somehow be legis-
lated out of existence. Indeed, the present charter
could carry far more traffic than it jiresently does,
if there were the will on both sides to cooperate
for peace. But in the light of these developments,
and considering the special role thrust on our
country today, it is logical that we should review
the charter to determine whether the dynamic po-
litical changes since World War II make it desir-
able to change the charter itself.

It is now time to ask some basic questions about
our general approach to charter review. First,
what kind of problem is it? Secondly, what are
the proper limits of a charter review conference?
Thirdly, what are our objectives?

Nature of the Charter Review Problem

Charter review is essentially a political prob-
lem. When we talk about review of the charter,
inevitably we are talking about world politics
and political relationship among sovereign states.
The United Nations today is an association of
states where decisions are implemented through
voluntary action by these states. This fact places
certain limitations on charter review as we will see
later.

We are aware that the difficulties encountered
in the operation of the United Nations today are
a product of political attitudes and actions of
governments. We recognize that dynamic soci-
eties oftentimes place great strains on the legal
documents which guide their actions. We know
that we have to look at the practical relationships
between the charter and political reality. We
know that our task is to determine whether changes
in the charter can foster desirable and feasible
developments from the point of view of the na-
tional interest of the United States and the paral-
lel interests of the free world.

This immediately raises the corollary question
of how the United Nations has worked in the past
8 years. I should not want to give the impres-
sion that we believe the United Nations is a perfect
instrument, or that it operates just as we want it
to. Not at all. It has its full share of faults.

We have had less than 9 years of experience with
this new tool. That is a very short time in the
history of political institutions. It is long enough
to reveal shortcomings, but not long enough to
correct them all. We know that U.N. action is
cumbersome. It is generally slow. Being with-
out coercive power, in the sense that a state has
political power, spokesmen in the United Nations
sometimes indulge in irresponsible talk or action.
Wliat is more serious is a tendency in the United
Nations to push this fledgling organization too
fast and too far. Member states which have re-
cently gained their own independence, for
example, are pi-one to demand complete and im-
mediate independence for all other dependent
territories, whether or not these territories are
ready for it and whether or not they can support
themselves or protect themselves.

Despite tlie imperfections I have just noted,
the United Nations has adapted its practices to a
fast-changing world. It is equally apparent that
we have scarcely begun to realize the great po-
tentialities of the United Nations. One might say
of the charter, as Chief Justice Marshall said of
the Constitution of the United States that "it was
intended to endure for ages to come, and it is con-
sequently to be adapted to the various crises of
human affairs." The charter is not rigid or static.
Like our own Constitution, the charter was made
flexible enough to be adaptable to the exigencies
which in the words of Chief Justice Holmes, "can-
not have been foreseen by the most gifted of its
beget tors."

The broad and comprehensive strokes used by
the framers of the charter have permitted de-
velopments to take place not entirely envisaged
at San Francisco. Let me give you two concrete
examples of how this 8-year old organization has
demonstrated a high degree of constitutional
adaptability.

The first relates to the veto. Article 27 (3) of
the charter provides that the Security Council
shall make decisions on nonprocedural matters
"by an affirmative vote of seven members includ-
ing the concurring votes of the permanent mem-
bers." On the face of the charter this would mean
that each great power must vote yes or a resolu-
tion will fail. Actually, the constitutional prac-
tice of abstention has developed so that a reso-
lution supported by any seven members is not
defeated unless a great power votes no. More-
over, the practice of abstention has been extended
so that deliberate absence by a great power, such
as the Soviet absence during the June 25 and 27
debates on Korea in the Security Council, will not
prevent that organ from acting. Since this ex-
perience in 1950, the Soviet Union has not ven-
tured to boycott the Security Council.

The most significant demonstration of United
Nations flexibility in light of changing political
conditions is the "Uniting for Peace" resolution
which was adopted by the General Assembly in

kptW 26, 1954

643

November 1950.^ This is the broad response of
the United Nations to Soviet vetoes and obstruc-
tionism which have prevented the Security Coun-
cil from exercising its primary responsibility of
the maintenance of international peace and secu-
rity. Now the General Assembly can meet in
emergency session and recommend collective
measures, including the use of force, to members
in the event the Security Council is unable to act.
The fact that one organ is paralyzed means that
other United Nations organs have had to assume
greater functions. The harm done by the abuse
of the veto in the Security Council has led to the
compensating activity of the General Assembly
through the "Uniting for Peace" mechanism.

Limits of Charter Review

If the charter review problem is essentially po-
litical, it is the greater part of wisdom that at
the outset we place certain limitations on the
kinds of amendments we may seek. For our part,
we feel that extreme proposals should be avoided.
We do not intend that the review conference de-
stroy U.N. functions and assets as they now exist.

Thus, to map the problem of charter review, I
believe that an agreed scale, with agreed dimen-
sions and boundaries, is necessary, so that an
agreed course can be charted. The Department
has done this to focus and direct its own thinking.

There are a number of theoretically possible
extremes which we in the State Department have
already ruled out in our own approach to this
problem. These extremes would include such
things as trying to write a brand new charter.
We feel this would open a Pandora's box, making
it difficult, if not impossible, to reassemble any-
thing like the present United Nations. As Secre-
tary Dulles said, "The United Nations as it is, is
better than no United Nations at all." *

The map with which we are working, and on
which we are trying to chart a reasonable course,
also has on its extreme limits proposals to estab-
lish some sort of superstate; to expel those we
do not like ; and to withdraw United States par-
ticipation.

So far as a "superstate" is concerned, I would
remind you that we must work with the material
at hand, with the world as it is. We live in a
world of sovereign nations and we are working
mightily to develop a level of cooperation among
them which would begin to make possible the ful-
fillment of the commitments embodied in the pres-
ent charter.

Obviously, a voluntary association of states is
not adequate in itself to give us a binding guar-
antee that there will be no war. But the United
Nations as a voluntary association does afford to
all peace-loving states a reasonable assurance that
they will have friends and allies if they are wan-

' Ibid., Nov. 20. 10.50. p. 823.
' Ibid., Feb. 1, 1954, p. 173.

644

tonly attacked by an aggressor. It also works in
many ways to prevent wars before they can start.
President Eisenhower has called it a "sheer neces-
sity" and has said that it is "man's best organized
hope to substitute the conference table for the
battlefield." ^ The charter review conference
must not hamper these vital aspects of United Na-
tions activity. We do not believe that it could
profitably devote itself to the attempt to create a
superstate.

Neither do we believe that proposals to reor-
ganize the United Nations without the Soviet
Union are within the proper scope of the review
conference. There is the practical difficulty that,
while article 5 and 6 permit suspension and ex-
pulsion, such action would require agreement of
the Security Council, which in turn is subject to
the veto. There is the further consideration that,
as Secretary Dulles has said, "most of the mem-
bers of the United Nations feel that it is better
to have even discordant members in the organiza-
tion . . ." " I would add that, while there is no
doubt that the Soviet bloc has consistently flouted
the principles of the charter, the advantage in hav- ■
ing them within the United Nations is that they ■
are forced to lay bare their record of hypocrisy
before the bar of world opinion. The articles of
the charter provide us with a standard for judg-
ment of Soviet performance. That the United
States and the free world are winning the battle
of ideas within tlie forum of the United Nations
is demonstrated by the fact that the United Na-
tions has failed to adopt a single major Soviet
proposal to which we objected during its entire
history. As Ambassador Lodge puts it, the Rus-
sians cannot control the United Nations ; they can-
not break it up; they do not dare leave it.

Without the Soviets, the United Nations'
chance of serving as a channel for East- West nego-
tiations, as in the ending of the Berlin blockade,
would be gone. Of most serious concern is that
if they were to be ousted from the United Nations,
it is possible that the organization might break up.

Finally, in spite of our abhorrence of Soviet
policies or the obvious shoi'tcomings of the United
Nations, we do not look to the charter review con-
ference as a vehicle for our own withdrawal.
There is no country which has more to gain from
the successful functioning of the United Nations
than does the United States. The United Na-
tions cannot do as we would wish it to do in every
instance. If the United Nations is a mirror which
often reflects disturbing realities of our world,
the solution is not to smash the mirror. If the
United Nations is also, as Ambassador Lodge sug-
gests, a loudspeaker, we do not attack the loud-
speaker, we use it. Our withdrawal would mean
handing the Soviet Union a golden opportunity to

' nid., Oct. 5, 1953, p. 457.
' IVid., Feb. 1, 1954, p. 171.

Deparfment of State Bulletin

organize a world community in its own image.
In an interdependent world, in which the oceans
no longer divide us from other countries and in
which communications have become universalized,
there can be no go it alone. The United States
no longer has the choice of isolating itself from the
rest of the world. We are a world power. Our
interests are not and cannot be confined to any one
area. They are worldwide. In concert with our
free world allies, we must continue to pool our
strength — military, political, economic, and mor-
al— to the advantage of ourselves and the free
world.

What We Hope To Achieve by Charter Review

I have stated the case for charter review, its
essentially political nature, which in turn places
certain limits on extreme proposals. It is also
apparent from what I have said that we do not
visualize the charter review conference as a pana-
cea, a cure-all, a magic wand which by some feat
of legerdemain can alleviate the ills of the world.
It is not our intention to foster the same kind of
over-optimism with respect to charter review
which was prevalent at San Francisco in 1945.
Changes in language alone cannot transform the
behavior of nations. If our view is tempered by
the knowledge that politics is the art of the pos-
sible, that charter review will require the wisdom
and self-restraint of statesmanship and diplomacy,
then it is legitimate to ask what do we hope to
achieve at any review conference? Would any
review conference be a futile exercise in light of
the Soviet veto on all charter amendments?

Not at all. Let me quote for you the words of
Secretary Dulles:

The existence of this veto does not mean that the Re-
view Conference is a futility. At San Francisco each
of the nations which had joined to draft tlie Dumbarton
Oaks Proposals had a "veto" over changns from these pro-
posals. Nevertheless, they did not exercise that veto as
against changes which were clearly reasonable and de-
manded by world opinion. We can hope that the same
conditions will prevail at the prospective Review Con-
ference. We can reasonably make our plans on the work-
ing hypothesis that no one nation will, in fact, be able
arbitrarily to impose changes or to veto changes.'

As a minimum a review of the charter and con-
stitutional procedures and practices should bring
greater understanding to our people and to the
peoples of the world as to how essential the United
Nations is to the peace, security, and well-being of
Americans and the rest of the free world. It
should bring about an understanding of the extent
to which the potentialities of the charter are being
realized. It can help measurably to refurbish the
faith we have in the present charter without rais-
ing false hoi)es and expectations.

This is a minimum. Our greater objective is to
strengthen the United Nations in all its aspects

on the premise that this will foster the national
interests of the United States and the free world.
Charter review can nurture the common consensus
among the freedom-loving peoples and thereby
make the United Nations more effective as an in-
strument of peace, security, and well-being, pro-
vided, of course, that any differences of opinion
will not be pressed to the point where the solidar-
itj' of the free world is disrupted and the United
Nations is torn asunder.

The United Nations is not a brooding omni-
presence in the sky. It is not a self-operating
mechanism which will automatically maintain
and enforce peace. It is rather an instrument
which can aid us to understand the strife, trouble,
and human need which exist in the world today
and provide us with the means to work in coopera-
tion with other nations for the peaceful solution
of common problems. It is an instrument which
affords nations the opportunity to combine their
moral and material strength in support of the
great principles of the charter. The effective-
ness of the United Nations depends not only upon
the lettered provisions of the charter but upon
the will and determination of the peoples of the
world to make it work. To the extent that charter
review can help to develop this will and determi-
nation, it will have served the interests of the
United States and of the free world.

Current U.N. Documents
A Selected Bibliography^

Trusteeship Council

Petitions Concerning the Cameroons Under French Ad-
ministration. Working paper prepared by the .Secre-
tariat. Part Three — Petitions Concerning Economic,
Social, and Educational Matters. T/C.2/L.53/Add.3,
January 6, ltt54. 28 pp. mimeo.

Petitions Concerning the Camerons under French Ad-
ministration. Part Four — Petitions Concerning Land
Matters. T/C.2/L.53/Add.4, January 7, 1954. 20 pp.
mimeo.

Petitions Concerning the Cameroons Under French Ad-
ministration. Part Five — Petitions Concerning Land.
T/C.2/L..53/Add.5, January 7, 1054. 14 pp. mimeo.

Petitions Concerning the Cameroons Under French Ad-
ministration. Part Six — Petitions Concerning Land
Matters. T/C.2/L.53/Add.6, January 7, 1954. 1(5 pp.
mimeo.

Petitions Concerning the Trust Territory of Togolaud
under French Administration. T/C.2/L.58, January 25,
19.54. 28 pp. mimeo.

Petitions Omcerning the Trust Territory of Togoland
Under French Administration. Part II. T/C.2/L.58/
Add.l, January 26, 1954. 14 pp. mimeo.

' Ibid., Feb. 1, 1954, p. 173.
April 26, 1954

' Printed materials may lie secured in the United States
from the International Documents Service, Columbia
University Press, 29(!0 Proadway, New York 27, N. Y.
Otlier materials (mimeographed or processed documents)
may be consulted at certain designated libraries in the
United States.

645

Discussions on Status of Women

Statements hy Mrs. Lorena B. Hahn

V. S. Representative on the U. N. Commission on the Status of Wom^n '

POLITICAL RIGHTS OF WOMEN

tJ.S./U.N. press release dated March 23
[Excerpts]

In 1900 women could vote in only one country,
New Zealand, and in four of the states of the
United States. Today, women vote on equal terms
with men in 60 countries. Two countries, ISIexico
and Syria, have moved from the limited suffrage to
the full suffrage column since we last met. The
Secretary-General's memorandum lists only 17
independent countries in which women are denied
the vote. All this progress has come in a brief
half-century — for many of us, within our own
lifetime. This should be a source of great en-
couragement to us, for it means that the peoples of
our world are ready for change and are seeking
more participation by women in public life.

This progress is even more amazing when we
realize, as we can from Table V, that 24 countries
have taken action favorable to woman suffrage
since the signing of the charter in 194.5 — only 9
years ago. Many of the countries listed have been
members of our Commission, or are members now.
China, long one of our members, took action in
1947, Costa Rica and Syria in 1949, Haiti in 1950,
Greece and Lebanon in 1952, and Mexico in 1953.
The report shows that every country which has
become a member of this "Commiss"ion without
woman suffrage has granted women the right to
vote, at least in part, before leaving our Commis-
sion.

This is a proud record — not that we can take
credit for the persistent leadership which has won
the vote for women in these areas, but because we
feel that this Commission has had a part in en-
couraging governments to take the formal action
recognizing the capacity and the wisdom of in-
cluding women in their electorate.

' Made in the Commission on Mar. 23, Mar. 25, and Apr. 5.
646

Because today women vote almost everywhere,
we must guard against a feeling that we need not
concern ourselves about those l7 countries where
women lack political rights. The principle of
equality is as important in one country as in any
other, and we cannot relax until women have equal
suffrage in all countries. Legislative action has
been started in some of these countries.

I have been especially interested in the docu-
ments on the status of women in trust and non-
self-governing territories. I had not realized,
for instance, the extent to which the people in
these areas are exercising suffrage, and, again, how
rapidly the opportunities to share in the election
pi'ocess is being extended. In the French Cam-
eroons, for instance, our report shows that suffrage
has been extended equally, and that in the brief
space of 8 years it has been possible to increase
the number of persons exercising the vote from
less than 16,000 to 580,000. In some of these areas
we find that there is already universal and equal
suffrage. It is extremely difficult to generalize
about the status of women in areas which differ so
vastly. In each of the reports, however, one feels
that the administering authority is working to en-
courage women to participate in public life. It
was gratifying to note that in the South Pacific
Conference last year there were women in official
delegations.

All this makes it evident that our Commission
can now concentrate more on establishing a cli-
mate of acceptance for women as voters. I have
heard of places where the first women to go to
the polls were jeered as they passed — not just by
men, but by women also. Developing a climate
of acceptance is a long-range job. It needs doing
where women have voted for many years, as well
as in countries where the vote is new. We are still
working toward this goal in the United States.
The pamphlet on Political Education of Women
is designed for this purpose.

Department of State Bulletin

EQUAL PAY FOR EQUAL WORK

U.S./tJ-N. press release dated March 25

The U.S. delegation welcomes this opportunity
to discuss equal pay for equal work for men and
women. We regard equal pay — payment of the
rate for the job irrespective of the sex of the
worker — as fundamental to a sound economic sys-
tem. In my comment today I would like to do
two things :

First, to examine the current equal pay situa-
tion against the background of the Commission's
work in this field.

/Second, to suggest a new and expanded a])proach
to increase the effectiveness of our work.

The Current Equal Pay Situation

We can take pride in the Commission's record
in the field of equal pay. Equal pay is a sub-
ject to which our Commission has devoted atten-
tion almost from the time of its establishment.
In fact, it might be said that the Status of Women
Commission furnished the impetus for the adop-
tion by the Ilo [International Labor Organiza-
tion] of the Convention and Recommendation on
Equal Remuneration for Work of Equal A^alue. I
refer to the resolution adopted by the Status of
Women Commission at its second session, in Jan-
uary 1948, in which it invited the Ilo and non-
governmental organizations to compile memoran-
da setting forth what action they were taking to
promote equal pay for men and women and so
implement the principle of the U.N. Charter that
there shall be no discrimination based on sex.

At its third session, in April 1949, in Lebanon,
the Commission reaffirmed its interest and re-
quested the Ilo to include the following points in
its study :

1. Adoption of the principle of the "rate for
the job" rather than of a i-ate based on sex ;

2. Granting to women the same teclinical train-
ing and guidance, access to jobs, and promotion
procedures as those granted to men ;

3. Abolition of tlie legal or customary restric-
tions on the pay of women workers ; and

4. Provisions to lighten the tasks that arise from
women's home responsibilities.

At our fourth session, in May 1950, the Ilo
reported that it had sent a questionnaire to gov-
ernments on equal pay law and practice, and stated
that the Ilo study was taking into account the
Commission's suggestions, particularly the concept
of wage rates based on job content rather than the
worker's sex.

U.S. SITUATION

The report on equal pay prepared by the Ilo for
this session of the Commission shows the progress

April 26, 1954

which has been made through official action toward
gaining acceptance of the equal pay principle.
Before commenting on this report, however, I
would like to make a few brief statements on the
equal pay situation for women in the United
States.

The situation in the United States with respect
to equal pay is generally good. We liave equal
pay throughout the Federal Civil Service and in
the States where State civil service systems are in
effect. In private industry, management and
labor to an increasing extent are incorporating the
equal pay principle in collective-bargaining agree-
ments. Equal pay laws for workers in private
industry are in effect in approximately 14 of our
States. These States are the big industrial States ;
approximately half of all employed women in the
United States live in the 13 States that have equal
pay laws. Equal pay bills are pending in the
Federal Congress, both in the House and in the
Senate.

In the United States we are proud of this prog-
gress. However, here as well as in many other
countries, there is still a big job to be done before
all women workers receive equal pay with men.

CURRENT ILO REPORT

The Ilo documentation for this session (Report
E/CN.6/231) contains favorable information on
national action in connection with the Ilo Conven-
tion and Recommendation. Tlie United States
has carried out its responsibilities by bringing
this convention to the attention of the States for
appropriate action. The Ilo Convention went
into force in May 1953 on ratification by Belgium,
Mexico, and Yugoslavia. The report shows that,
since the last session, three additional countries
have ratified, i. e., France, the Dominican Repub-
lic, and Austria.

The report shows a constructive and judicious
attitude among the various governments toward
the equal pay principle. Several recommended a
study of the standards and conditions which now
block the adoption of equal pay. In Finland,
such a study was recommended by the Parliament.
In the Federal Republic of Germany, the Govern-
ment proposed setting up a tripartite committee
to study the problem. In the Netherlands, a
Council composed of representatives of labor and
industry as well as of government reported on the
problem.

The Ilo report states that Norway is looking
forward to putting the equal pay principle into
effect in collective-bargaining agreements and that
Sweden expects to take action toward equalizing
men's and women's wages. Switzerland is study-
ing the effect of the equal pay system on its econ-
omy. In the United Kingdom, the London
County Council has adopted the principle of equal
pay for employees whose wages are negotiated
between the Council and its Staff Association.

647

The report represents a sizeable cross section of
countries. It reflects the attitudes of hibor and in-
dustry as well as of governments. Therefore, it
seems clear that we can expect additional gains
in putting the equal pay principle into practice
through official action.

Suggestions for Future Program

Here in the Commission, through our discus-
sion and exchange of information on activities
in our various countries, we have an opportunity
to pi'omote public education for voluntary accept-
ance of equal pay. We are an important forum
for discussion not only of the progress being made
in our respective countries, but of the methods
being used for achieving that progress.

This brings me to the second major part of my
statement, which deals with methods to give
broader effectiveness to the equal pay principle.
I would like to discuss first, popular misconcep-
tions of the meaning of equal pay ; and second, the
importance of building up an informed public
opinion in support of the equal pay principle.

POPULAR MISCONCEPTIONS

Some of the comments noted in the Ilo progress
report indicate the nature of the educational work
that needs to be done. Although the tone of the
report on the whole is encouraging and construc-
tive, it also shows some underlying misconceptions
about the importance of women to the economy
of their various countries and the value of the
work which women do. For example, in several
of the countries there appears to be a prevailing
belief that men are entitled to higher wage rates
on the ground that men have family responsibil-
ities and women do not.

The experience of the United States has shown
the fallacy of these contentions. Women's Bu-
reau studies show that most women work through
economic necessity, to support themselves and
others. All but a small percent of married women
workers regularly contribute to family support.
Nor is marital status the only criterion as to
whether a worker has family responsibilities. In
the United States most single persons, women as
well as men, have to work for a living. In addi-
tion to their own support, many single persons
are also responsible for the support of aged par-
ents or other relatives.

In the United States, women are now almost
one-third of our total labor force : one in every
three workers is a woman. Married women work-
ers outnumber single women workers; over half
of all employed women in the United States today
are nuirried women living with their husbands.

The presence of lai'ge numbers of women in the
labor force carries with it the potential threat of
competition between men and women on wage
rates. This aspect of equal pay is overlooked in

the government comments reported by the Ilo. If
women can be hired at lower rates than men, they
constitute a threat to men's wages and to the main-
tenance of sound labor standards generally. On
the other hand, putting equal pay into practice
gives workers of both sexes greater wage and job
security. It discourages hiring women for less
money or replacing men by women hired at lower
rates. It protects fair employers from luifair
competition by those who attempt to use women
to imdercut men's wages.

Even where men are not actually replaced by
women workers, the threat of such replacement
may be used to force wage cuts. The existence
of a pool of labor available for employment at
cheaper rates can always be used to the disadvan-
tage of workers on the job.

Protection of wage and job security is one of
the advantages of equal pay. Another is that
equal pay gives workers more money to spend.
In our system of free enterprise, it is important
to keep consumer purchasing power at a high level.
In plain language, this means that if people have
the money to buy goods, then factories will have
the money to keep producing goods and to pay
wages; and people, in turn, will have money to
buy goods. This is sound economics ; it has helped
us to achieve and maintain a high standard of liv-
ing in the United States.

EDUCATING PUBLIC OPINION

The Ilo report indicates the need to create a
favorable climate of public opinion as a basis for
applying the principle of equal pay. The mem-
bers of this Commission and of the nongovern-
mental organizations can help to do this in our
own spheres of work through the process of
education.

Considerable confusion still exists as to what
equal pay really means. Some people think of it
in terms of the total paycheck; that is, if a man
and a woman are doing similar work, the week's
earnings should be the same. Actually equal pay
refers to rates of pay. If one person works longer
hours or produces a larger quantity, he or she
will earn a larger amount although the rates are
the same.

We need to keep emphasizing the fundamental
principle that the worker should receive the rate
for the job irrespective of sex. In other words,
the rate of pay should be set for the job itself,
without distinction as to whether a man or a wom-
an is to receive it. Jobs that are designated as
men's jobs or women's jobs raise questions as to
whether the rate is based on the worker's sex
rather than on job requirements.

The agencies best fitted to carry out the educa-
tional activities needed are the nongovernmental
organizations, the women's organizations and the
unions that are associated with the work of this
Commission. In the United States, one of these

648

Department of State Bulletin

organizations, the National Federation of Business
and Professional Women's Clubs, has taken leader-
ship in the equal pay field. One of its methods,
for example, is the use of an "equal pay kit," con-
taining materials for use by their clubs in support
of equal pay at State, national, and international
levels; a radio script on equal pay; a suggested
speech; a suggested program for a meeting; ar-
ticles in its monthly magazine ; and various other
materials. This organization also emphasizes the
need for vocational training opportunities to fit
women for higher level jobs where they will qual-
ify for the same work and pay as men.

Another interesting example of recent public-
opinion activities in the equal pay field was carried
on by a member of the Federal Congress prior to
her introduction of a Federal equal pay bill. In
an extensive study covering almost a year, she sent
questionnaires to about a thousand leaders in
American labor, business, education, and women's
affairs. The experts who replied almost all
agreed with the principle of equal pay and a ma-
jority were in favor of Federal legislation to en-
force it. This public opinion poll was extremely
useful in stimulating public support for the bill.

I am sure that in many other countries similar
educational work is going forward. I would
therefore like to suggest that the Secretary-
General obtain from nongovernmental organiza-
tions an account of the steps being taken on an
unofficial basis in the various countries to promote
public education and acceptance of the principle
of equal pay. In addition to the Ilo report deal-
ing with official action, such an account of un-
official activities would be helpful to this Commis-
sion. It would enable each of us to profit from
her neighbor's experience and would provide many
useful ideas for voluntary progi-ams to help give
practical meaning and effect to equal pay.

We also look forward to hearing statements by
nongovernmental organizations at the current
session. These will furnish concrete examples of
the type of information that the Commission could
hope to obtain from an account of this kind next
year.

EDUCATIONAL OPPORTUNITIES FOR WOMEN

U.S. /U.N. press release dated April 5

Our discussion this year indicates that education
for women has become an important, if not the
most important, field of action for our study and
planning. Education provides women with the
knowledge and the confidence to use the rights
they have gained — their rights and responsibilities
as citizens, as wives and mothers, as workers, and
as individuals. The word education means much
more than schools, or literacy, or the study of
books. Voters who could not read and write have
repeatedly demonstrated understanding of issues

and maturity of judgment. All of us here today
are grateful for the wisdom which has been
lianded down through generations from iiei-son to
person. Education embraces the whole of culture,
and the manner in which we gain our knowledge
should never be confused with knowledge itself.

The problem we face in this Commission is that
in many countries there are women who have
never had an opportunity to learn much of their
world, and there are girls today who are not hav-
ing the same opportunity as their brothers to go
to school. The causes for such denial of oppor-
tunity are many and various, but they are not un-
conquerable. The report we have before us, the
Unesco report on access of women to education
(E/CN.6/250), is valuable for exactly this rea-
son— it provides us not only with careful statistics,
but also with some analysis of the problems which
account for the variations between continents and
countries. Another document which seems to us
of great value is the report of the Committee on
Non-Self-Governin<r Territories on the Education
of Girls (A/AC.357L.133).

I would like to discuss the situation regarding
education on the basis of these documents, with
particular attention to three problems :

First, assurance for girls of full educational op-
portunities.

Second, more teachers, and more women in
teaching.

Third, scholarships and fellowships for women.

I believe you all have before you the resolution
on education introduced by six delegations, in-
cluding the United States.^ This resolution deals
with the three points I have just stated.

Full Educational Opportunities for Girls

The Unesco report is to be commended on many
grounds. One of these is the plan to survey edu-
cation for girls over a 3-year period, so that we
can consider in greater detail the progi'ess achieved
in primary, secondary, and higher education.
This seems a wise division of material, and our
delegation expresses satisfaction with it. The sec-
ond chapter of the report, on Unesco activities in
1953, is also of interest.

U.S. COMMISSION ON THE EDUCATION OF WOMEN

The Unesco report mentions a Commission on
the Education of Women set up recently in the
United States. This is a voluntary effort, spon-
sored by one of our professional organizations,
the American Council on Education. The Com-
mission is being paid for by private sources and not
by Government funds. Among its members are a

' U.N. doe. E/CN.6/L.145. The resolution, as amended,
was adopted on Apr. 7 by a vote of 16-0, with the United
Kingdom abstaining.

April 26, 7954

649

number of college presidents, both men and
women, and certain government officials serving
in tlieir private capacity. Its director is a Dean
of Women in one of our great American uni-
versities.

The Commission has issued a statement on its
proposed study. It recognizes that the primary
responsibilities of American women relate to the
family and the home. It also recognizes that
more and more women are assuming expanded
roles in other vocations and in community inter-
ests. Tiie Commission is not interested in securing
special privileges for women. It is concerned
with the welfare of the United States and with
the contribution every person can make to our
society. The proposed study therefore includes
research on the special aptitudes of women, on the
influence of education, culture patterns, and social
attitudes upon women and on their contribution
as distinct from those of men. It does not look
forward to a plan of education for women which
will be different from that of men, but rather
that the curricula for all students can be enlarged
to provide an understanding of the role which
women play, and should be prepared to play, in
our society.

Turning back to the Unesco report, I would like
to comment on the emphasis in some countries on
special curricula for girls. It is natural and
healthy that girls should wish to study domestic
science and home economics and all the" aspects of
family life. Without such interests few women
will feel that their lives have been satisfying.
Courses in cooking, sewing, home nursing, and
child care are usually offered in our schools on an
elective basis, so that a gii'l choosing these courses
is not able to take others scheduled at the same
time. The same problem appears in vocational
training, where it is often expected that the girls
will elect home economics while the boys study
agriculture. I speak witli some feeling on this,
because I live in a farm area and know that a
farmer needs a wife who understands his work.
It is therefore not just a matter of providing
the same choices for girls and boys, but also ol
presenting these courses in ways which will not
make it necessary for a girl who chooses domestic
science to lose out on opportimities to study other
fields.

FUNDAMENTAL EDUCATION

The discussion of fundamental education be-
gins with a description of objectives which will
help us clarify our recommendations. While fun-
damental education is intended for adults, men
and women alike, who have not had an oppor-
tunity to go to school, its aim is to raise the stand-
arcl of living of people, improve their health con-
ditions, and help them become informed citizens.
The discussion includes a sentence which applies
in many aspects of our work: "No fundamental

education project is really successful in changing
the conditions of a community if it is limited to
men." A country can achieve full development
only when women are able to cari-y responsibili-
ties as partners in all phases of civic life. From
this point of view the success of the emergency
program for Arab refugees in attracting girls to
school promises well for their future.

The same view is expressed in the report of the
Education of Girls in Non-Self-Governing Terri-
tories. The introduction to this report says,

All improvements in the homes and in the bringing up of
children will be delayed until a great drive is made to
educate women and girls. ... If men from primary or
secondary schools marry wives who have had no school-
ing . . . the educated fathers will have the greatest diffi-
culty in passing on the benefits of their schooling to the
children.

The progress apparent in this report is astonish-
ing; while there are still gaps, there are areas in
which the proportion of girls in the total enroll-
ment approaches the expected 50 percent.

More Teachers and More Women in Teaching

A universal problem in these days seems to be a
shortage of teachei's. In some countries the short-
age reflects inadequate pay scales; in others it is
due to a lack of training facilities and recruits.
The countries where fewer girls attend school, and
for shorter periods, are for the most part in this
second group, and until more teachers can be
found, there will not be enough schools to go
around. In the United States, most of our teach-
ers have been women. This is true especially in
our primary grades, possibly because we think of
primary schools as a first transition from the home.
In countries where women have not been a large
part of the teaching force, it would seem easy for
them to be accepted first in the primary grades.
However, I would not wish this comment to be
taken in any way as a limitation, for in the United
States some of our greatest university professors
and secondary school teachers are women who are
recognized everywhere for ability and capacity.

Fellowships and Scholarships

A final section of the Unesco report deals with
scholarships and other opportunities for study in
foreign countries. As we expected, fewer women
than men have received grants, and in some cases
the disproportion seems unduly great. We should
not expect that young women will undertake ad-
vanced study to the same extent as young men, for
it is just at this point that girls tend to marry
and need to be at home with their children. We
should therefore feel encouragement that in al-
most all categories listed, some girls and women
are included. This proportion should increase,
for choices seem to be made in terms of qualifica-
tions without regard to sex. However, this is a

650

Department of State Bulletin

matter in which we cannot afford to be idle, and
the resolution we have proposed includes a state-
ment on scholarships, particularly in relation to
the need for more women trained for leadershiiJ
in education.

Our resolution also suggests that Uxksco pro-
vide in future reports an analysis, first, on meth-
ods which seem to have been helpful in increasing
school attendance by girls, and second, on expand-
ing the use of women as teachers in areas where
it has not been customary to employ them. I
understand that much of this information may
already be available in the material which comes
into UNESCO regularly from governments on im-
plementing Eesolution 32 of the 14th Interna-
tional Conference on Public Education, which dis-
cussed compulsory education and its prolongation,
and in other reports from these conferences. In
view of the large number of countries sponsoring
this resolution, we hope it will have serious con-
sideration.

Israel-Jordan Border Situation

Statement hy Henry Cabot Lodge, Jr.

U.S. Representative to the United Nations ^

The present situation in Palestine is one that
must be taken very seriously. It should not be
treated in a procedural narrow way which would
obscure the necessity for measures not only to pre-
vent the continuance of the disturbances but also
to look for more far-reaching solutions. It seems
to me that anyone who has been following recent
events in Palestine, whether he is an expert on
the Security Council or whether he is a private
citizen, would be immediately aware that there
is more involved here than findings under individ-
ual complaints of violations of the Armistice
Agi'eements. The complaints listed on the agenda
cannot in our opinion be separated into airtight
compartments.

Let me make clear at once that the United States
is seriously concerned when any government —
especially any member of the United Nations
bound by agreements approved by the Security
Council and lay her obligations under the charter —
presumes to take the law into her own hands in a
policy of reprisal and retaliation. We made this
perfectly clear at the time that we discussed the

Qibya incident in this Council,- and I wish to
state now that we continue to hold this view.
This repeated resort to this policv of reprisal and
retaliation must stop.

Reference has been made by several speakers
to the finding of the Israel-Jordan Mixed Armi-
stice Commission concerning the attack on the
village of ^N'ahhalin which is, in our opinion, a
matter of utmost gravity of a type clearly de-
servnig of condemnation. But also it is not enough
in an affair of this kind to have discussions, to
make findings and to issue condemnations. The
situation along the Israel-Jordan border since the
passage of the resolution on Qibya, on the 24th of
November 1953,^ has not improved. This Council
recognized at that time the obligations of both
Israel and Jordan under Security Council resolu-
tions and the General Armistice Agreement to
prevent all acts of violence on either side of the
demarcation line, and reaffirmed that it is essential
in order to achieve progi-ess by peaceful means
toward a lasting settlement of the issues outstand-
ing that the parties abide by their obligations.
It was in that connection that the Council recog-
nized the necessity of strengthening the Truce
Supervision Organization and of considering such
additional measures as might be necessary to cari-y
out the objectives of the Qibya resolution.

In our opinion it has become abundantly clear
that complaints such as those included in our pro-
visional agenda are interrelated. If we are to
take constructive action which will be helpful to
the parties themselves and conducive to peace in
the area, we must treat them as interrelated in our
consideration here. This is not only a matter of
principle but it is really the only practical way of
dealing with the present situation if this Security
Council is to continue to play a useful role in the
maintenance of international peace and security
as regards this problem.

While we need not in our opinion be bound by
precedent in such matters as these, and while I
think we should fit our procedure to the problem
before us, the course of action which I propose is
based on sound precedent. Members of the Coun-
cil will recall that at the 514th meeting of October
20, 1950, the provisional agenda headed "The
Palestine Question :" had six subitems involving
alleged violations of two different armistice agree-
ments and it was decided that when the Council
began its debate it would be permissible to refer to
each of the subitems while dealing with the first.

Mr. President, it is in that spirit that the United
States approaches this debate.

'Made in the Security Council on Apr. S (U.S./U.N.
press release 1899).

= Bulletin of Dec. 14, 1953, p. 839.
' For text, see ibid., p. S40.

kptW 26, J 954

651

Report of U. N. Command Operations in Korea

SEVENTY-SIXTH REPORT: FOR THE PERIOD AUGUST 16-31, 1953'

D.N. doe. S/3185
March 12, 1954

I herewith submit report number 76 of the United Na-
tions Command Operations in Korea for the period 16-31
August 1953, inclusive.

Marliing of the Demarcation Line and the clearing of
hazards within the Demilitarized Zone continued under
the supervision of Joint Observer Teams. Both sides
agreed in principle that bona fide residents of the Demili-
tarized Zone would be permitted to move in and out of
the zone in order to maintain livelihood.

Early in the reporting period the Communists notified
the United Nations Command that personnel would be sent
into the Demilitarized Zone to engage in the construction
of facilities for captured personnel not to be directly repa-
triated. This was the first official evidence that the Com-
munists would iiave non-repatriates. On 19 August the
Communists delivered a roster of deceased United Nations
Command military personnel. The total number reported
was 1,078. Agreement was later reached on a program of
recovery of bodies of deceased personnel from the Demili-
tarized Zone under the control of the other side.

By the end of the period the initial stages of organiza-
tion for the implementation of the Arnii.stice bad been
nearly completed. It is considered by the United Nations
Command that a satisfactory spirit of co-operation witli
regard to implementation of the Armistice exists in most
areas.

Repatriation of captured personnel continued during
the period. As for the prisoners themselves, those in the
United Nations Command custody who desired repatria-
tion generally were docile and co-operative until they
approached the exchange point. As each group neared

' Transmitted on Jlar. 11 to the Secretary-General, for
circulation to members of tlie Security Council, by the
acting U. S. representative to the U.N. Text of the 50th
report appears in the Bulletin of Dec. 15, 1952, p 958;
the 51st and 52d reports, Dec. 29, 1952, p. 1034; the 53d
report, Jan. 26, 19.53, p. 155 ; the 54th report, Feb. 9, 1953,
p. 224; the 55th report, Feb. 16, 1953, p. 276; the 56th
report, Mar. 2, 1953, p. 348 ; excerpts from the 57th, 5Sth,
and 59th reports. May 11, 1953, p. 690 ; excerpts from the
61st, 64th, and 65th reports, July 13, 1953, p. 50 ; excerpts
from the 07th, 68th, and (JDth reports, Sept 28 1953 p
423; excerpts from the 70tli, 71st, 72d, and 73d reports,
Jan. 4, 1954, p. 30 ; the 74th report, Jan. 11, 1954, p. 61 ; and
the 75th report, Jan. 18, 1954, p. 92.

Panmunjom, the returning prisoners, apparently by pre-
arranged plan and on order, gave startlingly similar per-
formances by discarding clothing, shouting, and throwing
various materials at United Nations Command officials.
By 31 August, however, the United Nations Command
had returned to Communist control a total of 61,415
prisoners. By the same date, the following numbers of
United Nations Command personnel had been released
from Communist captivity :

United States 2,827

Other United Nations 1,208

Republic of Korea 6, 979

Total 11,014

Tlie Armistice Agreement provides for the formulation
of Joint Red Cross Teams whose function during the
repatriation is to provide "such humanitarian .services as
are necessary and desirable for the welfare of the
prisoners of war." Early in the repatriation it became
apparent that those Communist members of the Joint Red
Cross Teams had missions not in consonance with the
Armistice Agreement. The Communists signed an oper-
ating agreement with their United Nations Command
Red Cross counterparts and then proceeded to complain
at every turn against implementation of its several pro-
visions. In practically every In.stance their complaints
and formal "reports" were pure propaganda. As a result
of these Communist tactics, any real service which might
have been rendered the prisoners in United Nations Com-
mand custody was prevented. Also, meager reports from
teams operating in North Korea left no doubt that those
Joint Red Cross Team members were seeing only what
the Communists wanted them to see and were performing
their "humanitarian services" only insofar as Communist
policy permitted.

In spite of all the unnecessary handicaps the United
Nations Command proceeded in good faith with tlie imple-
mentation of the Armistice Agreement.

United Nations Command Ground Forces continued to
re-establish themselves in new defensive positions south
of the Demilitarized Zone. Intensive training activities
were engaged in by all units, designed to maintain a high
state of morale and combat readiness. United Nations
Forces continued to support, logistieally and otherwise,
the various agencies created under the terms of the Armi-
stice Agreement. Aid and assistance was also provided

652

Department of State Bulletin

for the civilian populace by United Nations Command
military forces.

Pursuant to the Armistice Agreement, the United Na-
tions Naval Forces were directed to cease hostilities and
blockade operations ; to perform certain initial tasks ; to
maintain an alert state of readiness, and to comply with
the letter of the Armistice Agreement.

The largest task in connection with the Armistice Agree-
ment conducted during this period has been the transport-
ing of prisoners of war from United Nations prisoners of
war stockades to Inchon.

As of 31 August 61,415 Chinese Communist and North
Korean military prisoners of war and civilian internees
had been delivered to the exchange site. It is presently
planned to complete embarkation of all repatriates on 3
Septemlier. The debarkation of these repatriates will
take iilace on 5 September.

There have been no serious incidents reported during
this period. Mutually planned and agreed on daily quotas
have been met with only minor problems. Typhoon
"NINA" delayed operations of 16, 17 and ISth. However,
lifts began again on the 19th and normal operations re-
sumed. It is tentatively planned to commence the final
phase of operation "BIG SWITCH" on S September. In
accordance with these plans the lift of Chinese Commu-
nist non-repatriate prisoners of war from Mosulpo to
Inchon will commence on that date. Two thousand will
be lifted daily for seven consecutive days, then approxi-
mately two hundred seventy on the eighth day. The lift
of North Korean non-repatriate prisoners of war from
Koje-do to Pusan will commence on or about 9 September
with five hundred being lifted the first day and one hun-
dred fifty the following day.

ITnited Nations Naval aircraft continued to conduct
intensive training exercises while maintaining an alert
state of readiness.

On 27 September 1952 Commander in Chief, United Na-
tions Command established a Sea Defense Zone for the
purpose of preventing attacks on the Korean coast; se-
curing the United Nations Command sea lines of com-
munication and preventing the introduction of contraband
or entry of enemy agents into Republic of Korea territory.
This zone which extends around the perimeter of Korea
has remained a United Nations Naval responsibility since
it was established. In order to observe both the letter
and the spirit of the Armistice Agreement Commander
in Chief, United Nations Command suspended this zone on
25 August with the reservation that it may be reinstated
at any future date depending on the military situation.

The Military Sea Transportation Service and merchant
vessels under contract provided personnel lifts and logis-
tics as required for the United Nations Naval, Air and
Ground Forces.

United Nations Command Air Force units which were
committed to the Korean War continued to expand their
training operations as the first month of the Armistice
passed without major incident. These training flights are
designed to maintain the pilots and crews at a high degree
of combat readiness in the event hostilities should be
resumed.

Air Sea Rescue units were constantly alerted to perform
search and rescue missions for missing aircraft, shipping
and personnel.

United States Senator William F. Knowland, United
States Ambassador to the Republic of Korea Ellis O.
Briggs, United Nations Command Economic Co-ordination
C. Tyler Wood, President of the Republic of Korea Syng-
man Rhee and Prime Minister Too Chin Paik participated
in the ceremonies held in Pusan, Korea, on 29 August 1953,
marking the arrival of the SS New Rochelle Victory with
the first grain shipment under the newly authorized $200
million United States appropriation for the Korean Recon-
struction Rehabilitation and Defense Support Program.
Some 2,000 Korean, United States, and United Nations
officials attended the ceremonies. Czech and Polish mem-
bers of the Pusan Team of the Neutral Nations Super-
visory Commission were also present.

TREATY INFORMATION

Current Actions

MULTILATERAL

Germany — Relations

Convention on relations between the Three Powers and
the Federal Republic of Germany, with annexes.'
Signed at Bonn May 26, 1952 by the United States,
France, the United Kingdom, and the Federal Republic.
Ratification deposited: Germany — March 30, 1954.

Convention on the tax treatment of the Forces and their
members.' Signed at Bonn May 26, 1952 by the United
States, France, the United Kingdom, and the Federal
Republic.
Rutification deposited: Germany — March 30, 1954.

Weather Stations

Agreement on North Atlantic Ocean Stations. Dated
at Paris February 25, 1954. Enters into force (not earlier
than July 1, 1954) when instruments of acceptance have
been deposited by Governments responsible for the op-
eration of not less than fifteen of the vessels referred to
in Article I.

Israel

Italy

Netherlands

Norway

Sweden

Switzerland

United Kingdom

Signatures:
United States "
Belgium
Canada
Denmark
France
Ireland

BILATERAL
United Kingdom

Agreement relating to a technical assistance program
in erosion control and soil conservation in the Caribbean
area pursuant to the general agreement for technical
cooperation for territories for which the United Kingdom
is responsible of July 13, 1951 (TIAS 2281). Effected by
exchange of notes at Washington January 12 and 20, 1954.
Entered into force January 20, 1954.

' Not in force.

^ Subject to availability of funds and facilities.

April 26, 1954

653

New Foreign Relations
Volume Released

Press release 174 dated April 2

The Department of State is releasing on April 10
Foreign Relations of the United States, 1936, Vol-
ume /, General, The British Commomwealth. Of
outstanding historical interest in this volume are
the documents on two steps along the road to
World War II : the breakdown in efforts for mili-
tary and naval disarmament and Hitler's dramatic
move of sending his troops into the Rhineland.

The Conference for the Reduction and Limita-
tion of Armaments was already in abeyance be-
fore 1936 and the papers in the present volume
record the fruitless efforts to renew work on dis-
armament. Documentation on the London Naval
Conference tells of efforts to meet the situation
created by the withdrawal of Japan from the Con-
ference following the rejection of a common up-
per limit in naval strength. A limited treaty was
signed on March 25, 1936, between the United
States, members of the British Commonwealth,
and France. While this treaty did not provide
for quantitative limitation, letters were exchanged
on the same day between the head of the Ameri-
can delegation, Norman Davis, and the British
Foreign Minister, Anthony Eden, recording an
understanding that the principle of naval parity
between the United States and the British Com-
monwealth should remain unchanged and that
there should be no competitive building between
the two powers (p. 99).

The march of Hitler's troops into the Rhineland
on March 7, 1936, and its potential effects form tlie
chief subject of the papers printed under the title
"Analyses and reports by American diplomatic
missions regarding European political develop-
ments affecting the preservation of peace" (pp.
180-389). American diplomats rightly assessed
this move as a potential step in preparation for a
program of aggression. At that time, however,
events in Europe were more a matter of concern
to the United States than an occasion for action.
The plea of French Foreign Minister Flandin for
a statement by the President or Secretary of State
condemning on moral grounds the repudiation of
a treaty was turned down (pp. 217, 228). To a
message from Ambassador Josephus Daniels in
Mexico urging the President to tender good of-
fices, the reply was an expression of hope that no
drastic action would be necessary (pp. 219, 237).
When the League of Nations Council met in Lon-
don to consider the crisis, the American Charge
was instructed not to attend as a visitor (p. 244).
The position of the United States was explained
by Under Secretary of State William Phillips to

the Turkish Ambassador in the words "we could
not become involved in purely European politics"
(p. 245).

Ambassador William E. Dodd at Berlin was
inclined to blame the isolationism of the United
States for the progress of aggression. In a tele-
gram beginning "Please show the President" he
connected Hitler's action with tlie failure to
stop aggression against Ethiopia, including "the
Hoare-Laval performance and the news that the
United States washed its hands for good and have
nothing at all to do with Europe" (pp. 249-250).

In December Ambassador William C. Bullitt
reported from Paris that he had been consulted by
the German Ambassador, Count von Welczeck,
on the prospects of reaching a full understanding
with France but apparently nothing came of the
move (pp. 380-381, 382).

Aside from problems of armament and threats
to peace, the multilateral subjects treated in the
General section of this volume include negotiations
for the suppression of liquor smuggling into the
United States and on a number of economic prob-
lems. The section on the British Cominonwealtli
deals entirely with commercial matters, especially
with the efforts of Secretary of State Hull to secure
the cooperation of the British Government in
his international trade program.

Volume /, General, The British Commonwealth
is the second to be issued in the serias of five For-
eign Relationfi volumes for the year 1936, Volume
III, The Near East and Africa having been pre-
viously published. The remaining three volumes
will be released within the next few weeks. Vol-
ume I was compiled in the Historical Division by
George Verne Blue, a former staff member, and
Matilda F. Axton and Shirley L. Phillips under
the direction of E. R. Perkins, Editor of Foreign
Relations. Technical editing was in charge of
Elizabeth A. Vary, Chief of the Foreign Rela-
tions Editing Branch of the Division of Publica-
tions. Copies of this volume (LXXV, pp. 892)
may be purchased from the Superintendent of
Documents, Government Printing Office, Wash-
ington 25, D. C. for $4.25 each.

FOREIGN SERVICE

Consular Office

The consular agency at Puerto Cortes, Honduras, was
officially closed on March 1, 1954. All functions formerly
performed by this office will now be handled by the Ameri-
can consulate at San Pedro Sula, Honduras.

654

Department of Sfafe Bulletin

April 26, 1954

Index

Vol. XXX, No. 774

American Principles. The Middle East in New Perspec-
tive (Byioade) 62S

American Republics. Report on the Tenth Inter-American

Conference (Bowdler) 634

Canada. U.S.-Canadian Arrangements for Continental

Air Defense (Wilson) 639

China. Present United States Policy Toward China

(Jenkins) 624

Congress, The. Current Legislation 633

Credence, Letters of. Yugoslavia (Mates) 624

Economic Affairs

Indonesia Becomes Member of Fund and Bank .... 640

International Bank Makes Loan to Norway 640

Loan Negotiations With Coal and Steel Community . . 622

Europe

Loan Negotiations With Coal and Steel Community . . 622

Luxembourg Parliament Acts on EDC Treaty .... 621

Foreigm Service. Closing of Puerto Cortes, Honduras.

Consular Agency 654

France. FOA Makes Allotments to France and Spain . . 641
Indochina

D.S. Policy Toward Indochina (Parker) 623

D.S.-D.K. -French Discussions oa Indochina and South-
east Asia (Dulles-Eden) (Dulles-Bidault) . . . 622
Indonesia. Indonesia Becomes Member of Fund and

Bank 640

International Organizations and Meetings

Appointments to International Fisheries Commissions . . 640

Report on the Tenth Inter-American Conference

(Bowdler) 634

Israel-Jordan. Israel- Jordan Border Situation (Lodge) . 651

Korea. U.N. Command Operations in Korea 652

Middle East. The Middle East In New Perspective (By-

roade) v 628

Military Affairs

U.S.-Canadian Arrangements for Continental Air Defense

(Wilson) , 639

U.S. -U.K. -French Discussions on Indochina and Southeast

Asia (Dulles-Eden) (Dulles-Bidault) 622

Mutual Security

FOA Makes Allotments to France and Spain .... 641
Loan Negotiations With Coal and Steel Community . . 622
Negotiations With Nicaragua Regarding Military Assist-
ance 639

United States and United Kingdom State Positions on

European Defense Community 619

Nicaragua. Negotiations with Nicaragua Regarding Mili-
tary Assistance 639

Norway. International Bank Makes Loan to Norway . 640
Presidential Documents. United States and United King-
dom State Positions on European Defense Com-
munity 619

Publications. New Foreign Relations Volume Released . 654
Refugees and Displaced Persons. Georgescu Boys Freed . 640

Rumania. Georgescu Boys Freed 640

Spain. FOA Makes Allotments to France and Spain . . 641
Treaty Information

Current Actions 653

Luxembourg Parliament Acts on EDC Treaty .... 621

United Kingdom

New Foreign Relations Volume Released 654

United States and United Kingdom State Positions on

European Defense Community 619

United Nations

Current U.N. Documents 645

Discussions on Status of Women (Hahn) 646

Israel-Jordan Border Situation (Lodge) 651

Report of U.N. Command Operations in Korea .... 652

The United States and Charter Review (Wainhouse) . . 642
Yugoslavia. Presentation of Credentials by Ambassador

Leo Mates 624

Name Index

Bidault, Georges 622

Bowdler, William G 634

Byroade, Henry A 628

Dulles, Secretary 622

Eden. Anthony 622

Eisenhower, President 619, 621

Farley, John L 640

Georgescu, Constantin 640

Georgescu, Peter C40

Hahn, Lorena B 646

Jenkins. Alfred le Sosne 624

Lodge, Henry Cabot, Jr 651

Mates, Leo 624

Parker, Jameson 623

Suomela, Arnie J 640

Wainhouse, David W 642

Wilson, Charles B 639

Check List of Department of State

Press Releases: April 12-18

Releases

may be obtained from the News Divi-

sion, Department of State, Washington 25, D. C.

Press releases issued prior to April 12 which ap-

pear in this

issue of the Bulletin are Nos. 174 of

April 2, 184 of April 8, and 185 and 186 of April 9. |

No. Date

Subject

191 4/12

Georgescu boys' release

192 4/13

Joint Dulles-Eden statement

193 4/13

Mates credentials (rewrite)

194 4/13

Farley, Suomela appointments (re-

write)

tl95 4/13

Holland : Pan American Day

tl96 4/13

Holland : Archeological exhibits

197 4/14

Joint Dulles-Bidault statement

*19S 4/14

Educator to lecture in Germany

tl99 4/16

Tax conventions with Japan

t200 4/16

Protection of cultural property

t201 4/16

Foreign Relations volume

202 4/17

Military assistance negotiations with

Nicaragua
1.

♦Not printet

tHeld for a

later issue of the Bulletin.

. eOVERHMENT PRINTING OFFICE: I9B4

Foreign Relations of the United States . . .

the basic source of information on U.S. diplomatic history

1936, Volume lY, The Far East

the

Department

ot

State

This volume is divided into three main sections: The Far
Eastern Crisis, China, Japan. There is also a short section on
Siam (Thailand).

Reports on conditions in the Far East which form a back-
ground for the later outbreak of war comprise the major
portion of this volume. Direct negotiations between the
United States and Far Eastern governments in 1936 were of
relatively minor importance save for those connected with
Japan's withdrawal from the London Naval Conference (re-
corded in Foreign Relations, 1936, Volume I, General, The
British Commonwealth and Foreign Relations, Japan 1931-
19il, Volume I).

While 1936 was a period of relative inactivity in Japan's
extension of power in China, evaluations of the situation by
American diplomats showed that they were not lulled into any
delusion that Japanese aggressive aims were ended.

Two dramatic incidents of especial significance, one in Japan
and one in China, are reported on at length in this volume. The
first was the outbreak by an army group who on February 26
assassinated a number of high Japanese officials. The second
was the detention by force of Chiang Kai-shek at Sian, Decem-
ber 12-25, to bring pressure upon him for leading united
Chinese resistance to Japan.

Copies of this volume may be purchased from the Superin-
tendent of Documents, Government Printing Office, Washing-
ton 25, D.C. for $4.50 each.

Order Form 1

To: Supt. of Documents i Please send me copies of Foreign Relations of the United

Govt. Printing Office States, 1936, Volume IV, The Far East.

Washington 25, D.C. ]

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money order).

J/i€/ ^€ha/}^{?m.€/)^i/ M ^jta/e^

Vol. XXX, No. 775
May 3, 1954

A FIRST STEP TOWARD THE PEACEFUL USE OF

ATOMIC ENERGY • by Lewis L. Strauss 659

OBSERVANCE OF PAN AMERICAN DAY • by Assistant

Secretary Holland 675

THE QUEST FOR TRUTH THROUGH FREEDOM OF

INFORMATION • Statements by Preston Hotchkis . . 682

AMERICANS ABROAD • Article by Francis J. Colligan . . 663

For index see inside back cover

Boston Public Library
Superintendent of Documents

MAY 2 4 1954

^Ae zz^e/tcfyl^meTil^ oi^ Jtal^e

bulletin

Vol. XXX, No. 775 • Publication 5452
May 3, 1954

For sale by the Superintendent of Documents

TJ. S. Government Printing OfBce

Washington 25, D. C.

Price:

52 issues, domestic $7.50, foreign $10.26
Single copy, 20 cents

The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).

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

The Department of State BULLETIN
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the work of the De-
partment of State and the Foreign
Service. The BULLETIN includes
selected press releases on foreign pol-
icy, issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
interruitional affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

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

A First Step Toward the Peaceful Use of Atomic Energy

hy Lewis L. Straiiss

Chairman, Atomic Energy Commission ^

The technical limitations of photogi'aphy in
1863 spared Abraham Lincoln the daily exhorta-
tions of "Just one more, Mr. President," but it
would have been an intensely interesting archive
for this generation to be able to see the expressive
face of the great President — for instance, just as
he had delivered his address at Gettysburg. The
ubiquitous camera no longer spares our Presidents.
There is a flashlight photograph of President
Eisenhower taken within a few moments after he
had resumed his seat in the great assembly hall of
the United Nations and just as the prolonged ap-
plause had begun — applause which is almost un-
known in that august chamber and which was the
precursor of the worldwide acclaim that greeted
his historic address.^ The picture is a very mov-
ing one. It is the face of a man wlio had suc-
ceeded in communicating his profoundest convic-
tions to his hearers while they were responding
spontaneously and with obvious feeling. Wliat
may well be a great moment in the history of the
world is recorded and epitomized in that photo-
graph.

By now a great deal has been said about the
December 8th address. It was not a hastily put
together speech. It is true that the invitation to
appear before the General Assembly of the United
Nations was only received while the President was
in Bermuda and it presented an appropriate, in-
deed an ideal, forum for the occasion. But the
speech itself had been long in composition and
even longer in the Presidents mind. Every para-
graph, every word in it, had been weighed and
considered by him. He had written and rewritten
it and could have delivered it had he cared to do
so without benefit of manuscript.

Like other great addresses, it was not long — only
some 3,000 words. Edward Everett's oration at
Gettysburg on the famous day in 18G3 took up-

' Address made before the Los Angeles World Affairs
Council on Apr. 19 ; released to the press on the same date
by the Atomic Energy Commission.

' Bulletin of Dee. 21, 1953, p. 847.

May 3, 7954

wards of an hour to deliver and is forgotten.
President Eisenhower's brief speech had two ma-
jor purposes. One was to tell the world in the new
language of the atomic age of what humanity faced
if it could not escape another war. The other
purpose was to propose an alternative to the head-
long race of nations toward that precipice.

The first part was roughly two-thirds of the
speech. In measured phrases which could not be
misunderstood, the President described the force
of the new weapons with which science and engi-
neering had stocked the military arsenals of at
least three nations. He said that he souglit that
day to speak in a language which he would have
preferred never to use, the new language of atomic
warfare. "Atomic bombs," he said, "today are
more than 25 times as powerful as the weapons
with which the atomic age dawned, while hydro-
gen weapons are in the ranges of millions of tons
of TNT equivalent." He continued, "Today, the
United States' stockpile of atomic weapons, which,
of course, increases daily, exceeds by many times
the explosive equivalent of the total of all bombs
and all shells that came from every plane and
every gun in every theatre of war in all of the
years of World War II."

But so profound was the effect of the latter
part of the address, so great the yearning of the
world for some light in the gathering gloom of an
atomic armament race, so welcome any hope for
reducing the threat of atomic destruction by any
amount or means, that there was surprisingly little
note of the content of the first part of the address.
It was, in fact, overshadowed in both news and
editorial reaction.

The current series of weapons tests at our Pacific
Proving Ground, however, has effectively drama-
tized the earlier part of the speech. I hope it has
reminded many who had almost forgotten the
fact that the Soviets tested a thermonuclear device
in August of last year. A little examination of
the calendar also reveals that, had we not begun
our researches when we did, we might now be in
a position of weapon inferiority to the Soviet

659

Union — a condition with consequences of disas-
trous weiglit for the future of the presently free
world.

I would like to speak to you about both parts
of that address, retrospectively about why we
made A-bombs, why we decided to make H-bombs,
and, if the time pennits, about what, in my humble
judgment, lies ahead. It is an extensive catalog,
and I know that I can only treat each part briefly.

Genesis of President's Plan

To begin with, we in the United States under-
took to make the atomic bomb because we had
good reason to believe that the Germans were
working on it. It was clear that we had no re-
course but to see that we were not outstripped in
armament, especially by a nation as irresponsibly
and belligerently led as Hitler Germany. After
we made the bomb, we used it. We used it to
bring the war with Japan to an abrupt close and
then rested on our military and scientific
achievements.

The ne.xt step — our offer to share our monopoly
with the world — despite its lack of success was
one of the most satisfactory and proud pages of
American history. It was satisfactory because its
motivation was altogether meritorious. The blame
for our failure to exorcise this blight on the lives
of our generation must be placed by history
so,uarely where it belongs, on the heads and hands
of the men in the Kremlin. In cynical but effec-
tive fashion, they used every diplomatic stratagem
to delay, confuse, and destroy the proposal. In
this they succeeded. It now appears that it may
well have been because they had atomic weapon
plans of their own.

The failure, therefore, of the Baruch proposals
left the United States with no alternative but to
press forward with the development of its atomic
arsenal, and this too was done.

The Soviet achievement of atomic weapon capa-
bility eventuated sooner than most had expected —
much sooner. Our intelligence arrangements,
fortunately inaugurated in time, enabled us to
know almost as quickly as the Russian high com-
mand and months befoi'e the Russian people
learned that a test had been made. We announced
it on September 23, 1949.'

The Soviets conducted further tests in the au-
tumn of 1951 and again last summer. That last
series began with a very large explosion in which
we were able to say that a thermonuclear reaction
had occurred, that is, the fusion of nuclei of light
elements.

I have already referred to the cataclysmic pos-
sible consequences of this test had we been unready
for its impact. Fortunately, we were prepared.
When the fact that the Soviets had an atomic
bomb capability was demonstrated in 1949 and

' Ibid., Oct. 3, 1949, p. 487.
660

with negotiations for international control and
insj^ection deadlocked by them. President Truman
took a decision. He was aware that a lead in
numbers of weapons — a quantitative superiority
which we believed that we then enjoyed — even if
we were sure that we could hold it would become
of less and less importance relatively until it was
meaningless. Our only hope was to maintain the
status quo by having a qualitative superiority.
The President gave the order to the Commission
on January 31, 1950, to proceed with work on
what was then generally called the "super" bomb,
that is to say, a weapon employing as its chief
source of energy the principle of nuclear fusion
rather than of nuclear fission.

The success of American scientists and engineers
in this new effort is by now well known, and we
have no less an authority than Sir Winston
Churchill for the considered opinion that it has
been our continued possession of weapon superior-
ity which has preserved the world from further
large-scale aggression and another bath of blood.

Imagine the condition if we did not possess re-
taliatory power which neutralized the great Soviet
manpower plus their atomic weapon potential.
With that power possessed or usable oy them alone,
they could exert authority over small adjacent
nations with the whole world eventually ending
up in the maw of communism and slavery.

The alternative, however, of "two atomic co-
lossi . . . doomed malevolently to eye each other
indefinitely across a trembling world," which was
the vivid metaphor used by the President, is like-
wise an unacceptable condition though to a far
less degree than the consequence of submission to
communism. Because it represents an instability
which could be triggered into a war of great de-
struction. President Eisenhower had given the
subject long and concerned thought.

Out of his deliberations came the conviction that
a new factor, a new dimension, would have to be
emphasized before any hope could be entertained.
The answer lay in the atom itself^ in its latent
power to hecome not the master and destroyer but
the servant of man.

This was the genesis of the President's proposal
and its first great virtue is that it can be under-
taken "without the irritations and mutual sus-
picions incident to any attempt to set up a com-
pletely acceptable system of world-wide inspection
and control."

You will recall the heart of his proposal was
that the governments principally concerned to the
extent permitted by elementary prudence should
begin now and continue to make joint contribu-
tions from their stockpiles of normal uranium and
fissionable materials to an International Atomic
Energy Agency. He envisaged that agency as
established under the aegis of the United Nations.
Such details as the ratio of contributions, the pro-
cedures, etc., he felt should be discussed in "private
conversations" between the contracting parties.

Department of State Bulletin

He assured the delegates of the nations to whom
he was addressing himself that any partners of
the United States, acting in good faith with us,
would find us not unreasonable or ungenerous.

Conversations in Progress

Private conversations have ensued. There is an
impression I find — probably because these conver-
sations are private — that nothing is going on and
that tlie proposal is dormant. This is not the case.
The President's idea has been formulated into a
concrete plan. The plan has been discussed with
certain friendly governments. Just one month
ago today it was handed to the Soviet Ambassador
in Washington for transmittal to his Government.
This step followed the private conversations which
had begun in January and were continued by
Secretary Dulles when the Foreign Ministers met
in Berlin.

Why did the members of the Soviet delegation
in the audience at the United Nations, caught off
their guard, applaud with all the other delegates
there present ? And why after the first reactions
of denegation and disdain did the Soviet Govern-
ment at last respond? The answer to that must
have been because of tlie impact of what followed.
For the President had said :

The United States would seek more than the mere
reduction or elimination of atomic materials for military
purposes. It is not enoiigh to take this weapon out of
the hands of the soldiers. It must be put into the hands
of those who will know how to strip its military casing
and adapt it to the arts of peace. The United States
knows that if the fearful trend of atomic military buildup
can be reversed, this .greatest of destructive forces can be
developed into a great boon, for the benefit of all man-
kind. The United States knows that peaceful power from
atomic energy is no dream of the future. That capability,
already proved, is here — now — today. Who can doubt,
if the entire body of the world's scientists and engineers
had adequate amounts of fi.ssionable material with which
to test and develop their ideas, that this capability would
rapidly be transformed into universal, efficient, and eco-
nomic usage.

At this point, I am privileged to state that it is
the President's intention to arrange through a
national scientific organization to convene an in-
ternational conference of scientists at a later date
this year. This conference, which it is hoped will
be largely attended and will include the outstand-
ing men in their professions from all over the
world, will be devoted to the exploration of the
benign and peaceful uses of atomic energy. It
will he the first time that any such body has been
convoked, and its purpose, also in the words of
the President, will be "to hasten the day when the
fear of the atom will begin to disappear from
the minds of people, and the governments of the
East and West."

What Is the President's Proposal?

A few moments ago I mentioned the fact that
the President's proposal had been formulated into

May 3, 7954

a plan. It might be useful to state something
affirmative about what the proposal is and is not
to give a frame of reference within which the
practical potentials of a World Atomic Bank can
be discussed.

The United States proposal is not just another
move in the chess game of world politics nor is
it primarily a disarmament formula. It does not
endanger the atomic-weapons secrets of any nation
that now has or may possess such secrets.

It does 7wt involve suddenly placing trust where
yesterday trust could not be reposed. Imple-
menting the proposal requires no reliance upon
impossible enforcement provisions nor does it de-
pend on an interpretation of good faith.

It is not a prescription for technical alleviation
of disease that still scourges too many parts of the
world nor will it in a day — or a year — solve the
desperate struggle for daily bread where that now
exists. It will not, on any precisely measurable
timetable, turn deserts into lush meadows nor pro-
vide the energy to lift grinding toil from the backs
of those now living in underdeveloped areas.

The accumulative effect of the operation of the
proposed agency will do these things :

It ivill accelerate the application of peaceful
uses of the atom everywhere.

It will divert amounts of fissionable material
from atomic bomb arsenals to uses which will
benefit mankind, and these amounts will steadily
increase as long as the peace is maintained.

It unll foster the dissemination of information
for peaceful uses to atomic scientists everywhere.

It will stimulate the acquisition of new funda-
mental data and theory on which all progress
depends.

It toill provide an opportunity for nations which
are atomic have-nots, either individually or by
combining with others, to acquire atomic facili-
ties best suited to their individual needs.

It laill increase man's knowledge of his own body
and that of the plants and animals that nourish
him and the insects and pests that threaten him,
to the end that the healing art will be advanced
and new ways found to increase the world's food
sujiply. And man's useful life span will be
prolonged.

It will encourage young and imaginative minds
in many countries to seek useful careers in the new
disciplines of science and engineering to the end
that they may contribute to improving the econ-
omy and living standards of their respective
countries.

And, perhaps most important of all, the suc-
cessful operation of the International Atomic
Energy Agency will contribute mightily to focus-
ing world attention and understanding on the po-
tential of atomic energy to enrich the lives of all
of us and thus dispel some of today's doubts and
fears that its only use would be to destroy us.

Only in the last few days legislation has been
introduced designed to amend the Atomic Energy
Act in part to facilitate the President's plan.

661

Moreover, in the hearings when they take place
on the measure and on possible declassification of
data regarding industrial utilization of atomic
energy, we will be prepared to answer satisfacto-
rily any questions about the impairment of the
security of information. I would not be here to-
night if I felt that America's participation in the
International Atomic Energy Agency need en-
danger any secrets vital to our national defense.

Prospects for Many Applications

It has been less than 12 years since the power of
the atom was harnessed within a nuclear reactor.
In that brief interval, the achievements in peace-
ful uses of its energy have been varied and im-
portant. Here in the United States these results
have come along steadily and in increasing num-
bers despite our necessary concentration on mili-
tary applications in behalf of our own defense and
the defense of the free world.

There is no need here to inventory in detail the
multiple applications of atomic energy which we
have already found in the areas of medicine, bi-
ology, agriculture, and industry. We need only to
note that, notwithstanding, the surface has barely
been scratched. Progress has also been made in
other countries where the imaginations of men
have been fired by the problems and the possi-
bilities.

I do wish to emphasize a less widely known
aspect of atomic progress — the advances in new
fundamental knowledge. We have seen almost a
dozen new elements isolated, identified, and fitted
into the periodic table. In this still young art, we
have witnessed the confirmation of the principle
of breeding atomic fuel. Successful application
of this principle will greatly extend the use of the
normal uranium which would be contributed to the
International Atomic Energy Agency.

Such advances in fundamental knowledge will
be one of the high purposes of the new atomic
agency. It is no risky extrapolation from what
we now know to prophesy that in time — whether
it be a few years or a decade or a generation —
there will come discoveries to enrich the lives of
all of us fully as important as those we have
already witnessed.

Atomic Energy as a Source of Power

Near the end of his speech, the President said,
"A special puqiose [of the International Atomic
Energy Agency] would be to provide abundant
electrical energy in the power-starved areas of the
world." There has been a very substantial recent
development in this area. I would recall to you
that within the last year the Atomic Energy Com-
mission in testimony before congressional commit-
tees felt it necessary to discount the possibility
that, under foreseeable conditions, there was any
prospect for the large-scale investment of private

662

capital in the development of nuclear power until
the Commission had demonstrated its economic
feasibility.

Today, less than one year since that statement,
we have had nine proposals from large companies
and groups of companies to undertake to build and
operate the first large civilian power plant. It has
been awarded to one, the Duquesne Light Company
of Pittsburgh, whose proposal will save the Gov-
erimient some $30 million of the cost of its con-
struction and operations. Other companies also
see the possibility of getting in on the develop-
ment of nuclear power even at this early and
economically undemonstrated stage, and other
projects are under discussion with them.

This is an important milestone in the short life
history of atomic energy. Competent engineers
say that fossil fuel reserves, at least those that
constitute presently available sources of supply,
are rapidly dwindling. In Europe and elsewhere,
nuclear power is now envisaged as the most prom-
ising energy source for the future.

Here, then, lies one ready opportunity for the
proposed new atomic energy agency.

To me, the kind of thinking that would be stimu-
lated by the mobilization of scientific and engineer-
ing minds, which should result from the operation
of the world bank of atomic materials, would be
unlimited since it is geared to man's imagination
and his resourcefulness.

A Hopeful First Step

For the first time since the discovery of fire, we
have come into possession of a force with which
we can enrich our lives incalculably or, failing to
make that choice, we can wreck a large part of
what we have inherited from the accumulated art,
heart, and spirit of the generations that preceded
us.

In an effort to temper optimism, yet preserve the
great faith that the President's plan deserves, I
have mentioned its immediate limitations. It will
not be within its scope to cure the ills of the world
with a single stroke, and it does not pretend to
insure against future war. It would be unfortu-
nate if it were represented as other than what it
is, for that is so very much — an understandable,
reasonable, feasible, constructive, and hopeful first
step toward making atomic energy the servant of
man.

My old chief, former President of the United
States Herbert Hoover, to whose Quaker convic-
tions the possibilities of warfare are so funda-
mentally revolting, after listening to President
Eisenhower's speech, said, "I pray it may be ac-
cepted by all the world." We may well join our
prayers to his to ask that Divine Providence guide
the hearts and minds of all men of all nations to
grasp this opportunity to "shake off the inertia
imposed by fear, and . . . make positive prog-
ress toward peace."

Department of State Bulletin

Americans Abroad

by Francis J. ColUgan

"The heart of American foreign policy is our
national conduct," Secretary of State John Foster
Dulles has said, "and that is a matter not just for
our diplomats but for every individual among us."
These words are particularly applicable to those
who travel abroad.

They confirm, among other things, what the
President said last fall when speaking at New
Orleans.^ On that occasion, he remarked,

I think that almost 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 dii)-
lomatically ; impulsive, too proud of their strength, ready
t(] fight, wanting war. He is shocked. . . . These
friendships of which I speak, my friends, are so vital to
us that no American, no matter how exalted or how lowly
may be his station, can afford to ignore them. Each of
us, whether bearing a commission from his Government
or traveling by himself for pleasure or for business, is a
representative of the United States of America and he
must try to portray America as he believes it in his heart
t(i lie: a peace-loving nation living in the fear of God but
in the fear of God only, and trying to be partners with
iiur friends. And we accept for a friend anyone who
i^cnuinely holds out the hand of friendship to us as we do
to them.

These views are, in effect, documented by two
recent studies made by the International Educa-
tional Exchange Service of the Department of
State. One study involved asking more tlian 200
Americans who had studied in Great Britain for
tlieir comments on Anglo-American relations as
they had observed them. In listing the major
causes of misunderstanding of America by the
liritish, 80 mentioned "the tendency to generalize
from the observation of tourists . . . and cer-
tain other Americans." To describe such trav-
elers, the students used such phrases as "noisy and
rather naive," "ill-mannered and drunk,"
"thoughtless and ostentatious," especially in
s])ending money, and "depressingly ignorant in
their disregard of local customs and modes of
beliavior." On the other hand, most were im-
pressed by the spirit of personal friendliness
wliich prevailed between Americans and British-

' Bulletin of Oct. 26, 1953, p. 539.

May 3, 1954

ers, and several stated that "the British like
Americans but not America."

The second study was based upon a question put
last year to more than 1,000 foreign students in
the United States. They were asked where they
got their advance information about this country.
Eighteen percent mentioned American visitors as
a major source of information. Many others cer-
tainly pick up various notions about America
from the attitude or behavior of our travelers as
they see them.

These studies and others like them indicate that
international travel is, potentially at least, the
most effective mode of contact between peoples.
It not only provides badly needed dollars to dollar-
short countries (in some, tourism is the best dollar-
earner) ; it can also contribute substantially to a
truthful, factual balanced picture of the United
States in the minds of the peoples of other coun-
tries. This is especially significant today when
public opinion can be such a vital force in inter-
national relations and when Americans are seen
abroad largely as travelers and especially as
tourists.

American travelers to foreign lands have been
few in number, at least in comparison with Euro-
peans. The distance of the outsize island which is
the United States from most other countries and
the consequent amount of time and money re-
quired for travel have limited the number and
types of travelers, the duration and extent of their
trips, and the nature and scope of their activities.
Most trips take place during the summer months
and most are relatively brief. The large propor-
tion of those in educational pursuits who under-
take international travel — more than 50,000 in
1952 — is due, partly at least, to the fact that such
people have free time during the summer.

Tlie worker, the merchant, or the businessman,
despite the fact that his resources may be at least
equal to those of his foreign counterpart, still has
little time for travel even when it is directly con-
nected with his business. It is probable that very
many American travelers pay only one visit to a
foreign country not immediately adjacent to the
United States. American travelers have been a

663

relatively select group with specific purposes in
mind, and this selectivity and purpose by its very
nature may skew the picture of American life,
motives, and attitudes which they have presented
abroad.

It is remarkable and very encouraging that
travel abroad is steadily increasing. During the
first half of 1953, 269,918 passports were issued,
as compared with 145,516 for the similar period
in 1952. It was estimated that international trav-
elers last year would total about 600,000. One
reason for the increase is the speedup in transpor-
tation, enabling people with only a few days or
weeks to travel fairly far in the time at their
disposal. This should lead in turn to more group
rates— and lower rates. The net effect should be
to broaden the type and range of American trav-
elers and thus show a more representative cross
section of our people to our friends overseas.

The mere increase of such travel, however, will
not in itself improve the impression we make on
our hosts abroad nor foster that awareness of our
responsibilities as Americans which President
Eisenhower has pointed out. It is safe to assume
that increases will largely be in the tourist trade,
and the tourist, whose purpose is frequently nov-
elty-seeking or just relaxation, is least apt to
want his fun curtailed by an admonition to be
"serious." Moreover, face-to-face contact with
others is not in itself a gviarantee of understand-
ing, cooperation, or friendship. On the other
hand, such contact can help a lot, and travel when
properly oriented can contribute significantly to
the effectiveness of our working with and trading
understanding with other peoples. What then
can be done to take advantage of this unusual
source of personal contacts for the purpose of
presenting a full and fair picture of American
life and motives in ways which are appropriate
in a free society, marked not by governmental
decrees but by private initiative and personal in-
dependence ? As a matter of fact, much is already
being done and it is possible for interested groups
to learn from the experience of others while adding
to it on their own.

American travelers constitute at first sight a
complex, undifferentiated flow of traffic. They
represent all kinds of people, from accountants
to writers; they travel abroad for various pur-
poses. Of the .395,337 who i-eceived passports
during 1952, nearly 200,000 planned to travel on
business; 29,000 sought "education"; and almost
144,000 proposed to travel for travel's sake — to
relax, to satisfy their curiosity, to see the "cities
of many men and know their manners." Most
of them — more than 300,000 — were to visit West-
ern Europe, 43,000 Latin America, and only some
34,000 planned to visit other areas of the world.
(Traffic with our nearest neighbors, Canada and
Mexico, and with some other countries, is not re-
flected in these figures since passports are often
not needed.)

What Is Being Done

During the past few years, much has been done
to make the trips of Americans abroad more sig-
nificant. To sketch some of these efforts briefly,
we should distinguish, first of all, between two
groups: (1) individual travelers and (2) those
whose trips are organized and sponsored.

Individual- travelers constitute a sizeable ma-
jority of the total number. How and to what ex-
tent they prepare themselves for trips abroad de-
pends entirely upon their own initiative, tempera-
ment, and intelligence, their awareness of the
values of foreign travel, and their interest in world
affairs. However, a growing amount of helpful
and stimulating literature is now at their disposal.
Articles in newspapers and magazines have been
increasing — articles which go beyond the tradi-
tional "travel guide" type to suggest constructive
interests and responsible conduct while abroad.
Typical of the trend is Leland Stowe's "The Knack
of Intelligent Travel" which appeared originally
in the Reader's Digest and which has been re-
printed in at least one travel guide. Some guides
now include hints, suggestions, and downright ex-
hortations along the same line. Notable among
them is the 3-volume New World Grades which,
in addition to the usual data, contains a chapter
on tlie Organization of American States.

There are also several pamphlets which place
particular stress upon the need for a s]iecial sense
of responsibility on the part of Amei'icans while
traveling abroad. One which has been issued
by Pan American World Airways is entitled IIow
to Win Friends and Influence People in Latin
America. Another issued by the International
Information Administration (now the United
States Information Agency) is entitled Go to
Latin Ainerica ii;ith a Purpose. A memorandum
on "The Tourist's Ten Commandments" has been
circulated b}- tlie Pan American Union. Others
range beyond this hemisphere. What Should I
Know When I Travel Abroad?, published by the
Common Council for American Unity, has been
distributed widely to prospective travelers by
transportation companies and travel agencies. A
helpful booklet, Travel Abroad, has been given
wide circulation by Unesco. The principal theme
of much of this literature is stated succinctly in
the quotation from a congressional committee
report, which appears in the pamphlet which the
Department of State issues with every passport:

"Tourists who assiune an air of arrogance or who tran-
scend the common bonds of decency in human conduct
can do more in the course of an hour to break down ele-
ments of friendly approach between peoples than the
Government can do in the course of a year in trying to
stimulate friendly relations. As we act so are we judged,
•words to the contrary notwithstanding, and it is fer-
vently to be hoped that our citizen travelers will have
a growing appreciation of this fact and deport them-
selves in a manner befitting their station and trainiug."
Here, as elsewhere,what we do is more important than
what we say.

664

Deparfmenf of S/afe Bulletin

How effective such literature has been to date is
difficult to determine precisely. There is every
reason to believe, however, that its publication is
worthwhile, a conclusion which is bolstered by the
ever greater efforts which have been made in the
field of organized travel.

Organized, sponsored travelers are numerous,
and their number is increasing. They include
those who take part in group tours arranged by
travel agencies and those who participate in highly
organized trips sponsored by private groups or
by the Government, with systematic activities and
specific objectives in mind. In the first group,
those organized by travel agencies for "self-se-
lected" persons, increasing attention is being given
to the preparation of the travelers, at least as re-
gards such information as conditions of travel
abroad and local customs and regulations. Such
preparation at the very least makes travel itself
easier and may, therefore, develop a better oriented
and more recejDtive visitor. Some plans go fur-
ther. One, for example, is that of the American
Express Company, for members of the Book-of-
the-Month Club. Those who plan to take part in
one of a series of vacation tours receive from the
Club — free of charge — a kit of carefully selected
books about the countries and regions to lie visited.
These kits include not only guide books but also
surveys of the history, customs, and ways of life
of the countries to be visited.

Such activities, however, are not confined to
reading matter. Some universities, through ex-
tension courses, offer courses to prepare people for
travel abroad, and travel companies and others
are offering "package tours."

A recent newspaper article notes, as a new trend,
planned travel to Europe and Latin America
based on bringing American tourists into contact
with people of similar interests in the countries
visited — be they lawyers, farmers, coal miners, or
automobile salesmen.

Sponsored travelers are usually those who wish
to travel for specific and relatively serious pur-
poses. The well-known programs of the Institute
of International Education and the philanthropic
foundations need only be mentioned here. The
"Junior Year Abroad" programs of several col-
leges are in the same class. Of special interest in
this field are the interchange projects arranged
by the 4— H Club Foundation — the International
Farm Youth Exchange, which every year sends
abroad groups of young Americans from rural
areas to spend several months on farms in the host
countries and brings young people to the United
States for similar purposes. Top-flight musical
and theatrical artists and groups also are becom-
ing increasingly aware of the role they can and
do play in projecting the cultural achievements
of America to foreign audiences — for example,
Porgy and Bess tours, those of the Ballet Theatre,
those sponsored by the American National Theatre

and Academy (Anta). Among them, they make
an impressive story and an inspiring one.

Aside from these, most sponsored travel proj-
ects are of relatively short duration and for the
summer months. They have various purposes and
exhibit varying degrees of organization. In
many, the participants are self-selected ; in others
they are chosen and financed in whole or in part
by sponsors. Some offer definite professional ad-
vantages to professional people — for example, the
trips arranged by the National Education Associa-
tion for teachers. Here the participants are
largely self-selected but trips follow a definite
plan for the cultivation of professional contacts
and earn acaclemic credit for their participants.
Planned travel of another type is that sponsored
by the General Federation of Women's Clubs.
The Federation has conducted several world-co-
operation tours, two inter-American cooperation
trips, and a field seminar in Mexico, all in the last
2 years. Some of the participants were self-se-
lected; others were chosen for the specific pur-
poses of the tour. As a result of these trips, the
Federation has published a pamphlet, Eoio to
Make Friends and Capture Memories, containing,
among other things, a list of "do's and don'ts"
of travel.

By far the most numerous in this group are
those on work-study tours. The National Student
Association, for example, has sponsored such trips
and has issued information booklets each year on
work, study, and travel projects. Other types of
projects have included hostel and work-camp ac-
tivities, and the Community Ambassador Project
of the Bureau of Adult Education of New York
State. All these work-study projects are or-
ganized for specific purposes. Most, if not all, of
them include as an objective, implicitly or ex-
plicitly, the development of international coopera-
tion and understanding through personal contact
and constructive, worthwhile activity. The ac-
ceptance, screening, or selection of travelers is
made with this, among other things, in mind. A
considerable amount of careful advance prepara-
tion, including literature and oral briefings, is
undertaken. In most cases, travel and activities
overseas are also guided and supervised. Many
sponsors carefully evaluate their activities with
an eye to constant improvement.

Many projects sponsored by nonprofit organiza-
tions are coordinated by the Council on Student
Travel. The Council got its start from the action
of the State Department's old Division of Ex-
change of Persons which in 1947, in response to
widespread demands to break the "bottleneck" in
low-cost summer travel for students, cooperated
with the Maritime Commission in making avail-
able troop transports operated at commercial rates
by the U.S. Lines. Wliile this effort of the Gov-
ernment lasted only until 1950, it sparked the
formation of the Council which, witli the assist-

May 3, 7954

665

ance of the Carnegie Endowment, has sent abroad
about 5,000 students annually. Representing di-
rectly some 36 organizations and serving many
others, including universities and religious groups,
it gives information and advice, suggests improve-
ments in itineraries and travel programs, and es-
pecially provides shipboard orientation to prepare
students for living in cultures diiferent from their
own.

An appraisal of summer projects made some
time ago by the International Educational Ex-
change Service of the Department of State indi-
cated that most of them are well organized and
conducted under able and experienced leadership.
It was obvious that the participants had benefited
and that they had made a favorable impression on
the people they met overseas.

Appraisals like these reflect the interest which
the International Educational Exchange Service
takes in travel projects. Because of their sig-
nificance for international cooperation on a broad,
popular level, this Service works with hundreds
of such sponsoring organizations every year, of-
fering, on request, advice and direction and ar-
ranging where possible for predeparture orienta-
tion and for assistance from the U. S. Information
Service in the countries to be visited by the groups.
In so doing, it is following a time-honored prin-
ciple of encouraging the widest possible develop-
ment of worthwhile exchange projects by private,
nongovernmental groups and organizations, and
of fostering close cooperation between the public
and our Government in this field.

Educational Exchange Programs

This cooperation is also reflected in the edu-
cational exchange programs financed in whole or
in part by our Government and administered
through this Service. Under these programs,
private, nonofScial travelers going abroad will
number about 1,800 people this year. Most of
them will stay abroad for 1 year. Nearlv 1,000
will be engaged in advanced study ; the remainder
will teach m elementary and secondary schools,
lecture m educational and professional institutions
and before general audiences, undertake profes-
sional research, or give specialized assistance to
foreign organizations and agencies. All of them
will be carefully selected in the light of the specific
purposes of their projects and of the fundamental
purposes of the program, as expressed in the
Smith-Mundt Act,

... to promote a better understanding of the United
States in other countries, and to increase mutual under-
standing between the people of the United States and the
people of other countries.

For those persons who go abroad under this
program, advance preparation takes the form of
informational literature and suggested back-
ground readings prepared by the cultural sections
of our posts abroad or by the United States Educa-

tional Foundations or Commissions established
under the Fulbright Act. Such literature includes
not only information on currencies, clothes, cli-
mate, etc., but also summaries of local laws and
customs, hints on differences in ways of life, sug-
gestions regarding local contacts, and other com-
ment which looks beyond immediate professional
pursuits, however important for the program they
may be, to the fundamental goal of international
cooperation and understanding.

Most of the orientation of these persons takes
place after they arrive in the host countries. It
follows plans developed by our missions and foun-
dations. These may vary from individual per-
sonal orientation for certain specialists to system-
atic orientation courses of from 2 to 6 weeks for
groups of students. Such courses include the
study of customs, educational system, and social
institutions of tlie host countries. In several
countries they include intensive instruction in the
national language as well — for example, those
offered to students in Italy at the University of
Peruggia or in Norway at the Summer ScKool
for American Studies at the University of Oslo.
Nor does such orientation cease with "introduc-
tory" courses or briefings. It merges with other
activities and supervision to constitute a year-
round process of counseling, supervising, guiding,
and facilitating the work of the grantees under
the program.

By the very nature of the activities under-
taken, as well as by their relatively long duration,
grantees are brought into constant contact with
their occupational or professional counterparts
and with many others also. An indication of how
this works out in personal terms may be seen from
the following example :

An American student in Thailand reported that
he had visited about 125 different Chinese and
Thai homes. "In most cases, I was the first
Westerner, and certainly the first American to
have entered their homes. My reception was in
all instances exceptionally friendly. ... I
would judge that this was one of the few ways
these people had to get the American point of
view."

For these reasons, among others, their impact
is often pervasive, penetrating, and lasting, espe-
cially among groups which influence public
opinion. Although a large percentage of these
grantees travel to Europe, more of them travel
to other areas of the world than do American
travelers generally.

Tliat careful planning, preparation, and ar-
rangements are worthwhile is seen by the results.
In general, American grantees return to the
United States with a greatly enriched background
and with an understanding of foreign attitudes
and reactions to American life, motives, and pol-
icies. Our overseas missions report that the
grantees through ability, seriousness, and fair-
ness, leave the impression among the people with

666

Department of State Bulletin

whom they have lived that in international affairs
Americans wisli to be sincere partners with, as the
President has said, "anyone who holds out the
hand of friendship to us as we do to them."

These appraisals have been amplified and con-
firmed by such recent studies as tliose undertaken
by the Senate Subcommittee on the Operation of
Overseas Information Programs (the Hicken-
looper Committee), including the reaction of
American Ambassadors, foreign correspondents,
and others. They indicate clearly that careful
planning, detailed preparation and counseling,
and purposeful activity can do much to enhance
the impact of our travelers on the people of other
countries, and vice versa. In this connection at-
tention should be called to the growing body of
valuable literature, produced by various special-
ists and organizations, which represents thought-
ful study and evaluation of various exchange and
travel projects.

Some Generalizations and Suggestions

What is now being done to make the travel of
Americans more significant is encouraging. It
also points the way to what can be done by other
agencies or organizations as they become interested
in this question.

In the first place, further encouragement should
be given to trips to areas of the world which few
Americans visit, to travel for longer periods of
time, and to more extended stays in particular
countries and localities. Much can be accom-
plished through special travel arrangements at re-
duced rates and the financing of projects by
individuals, service clubs, and other organizations.
Eecent trips to the Middle East by student groups
offer stimulating and instructive examples.

At the same time, every effort should be made to
develop greater and more widespread awareness of
the responsibilities of American travelers. Much
of our irresponsibility as travelers has stemmed
from our tourists' "emancipation"' from the sanc-
tions that restrain their conduct at home. An
awareness of the role of America in what President
Eisenhower has described as "not a moment but
an age of crisis" should restrain their conduct
abroad.

In pursuit of such an awareness, prospective
travelers should realize the value of a knowledge
of a country, its language, and its people. They
should have some idea of its relations with the
United States. They should cultivate respect for
the people of host countries, an awareness of their
special problems, a desire to share common inter-
ests and to understand significant differences. In
their conduct, they should strive truly to represent
our people — and at our best.

The businessman will find that such an approach
is good business. The educator and student should
find it indispensable. Tlie tourist should find that,
far from detracting from his trip, it enriches it.
In fact, sTich attitudes can best be built around

their major interests — be they business, education,
or tourism.

For many, a trip abroad is a unique experience ;
they should be receptive to reasonable plans and
suggestions. As Fred M. Hechinger, education
editor of the New York Herald Tribune^ has
pointed out :

It has been my experience that the way to have the
best possible time on a foreign trip is to have some sort
of real objective. . . . The point is that such interests
will give you a frame of reference which the ordinary
tourist lacks. It does not limit and certainly does not
exclude all other activities of the traveler. On the con-
trary, it may intensify them. It certainly will make their
pursuit more intelligent. It will, above all, enable you
to deal with people on a more meaningful level.

An increase in organized, sponsored travel
should be encouraged insofar as the projects are
worthwhile and send abroad people whose trips
will make a desirable impact in other countries
and at home.

Responsible sponsors and leaders of organized
travel projects should be alert to profit from the
growing body of experience of numerous organi-
zations already in this field. Specifically, they
should keep in mind the value of projects which
make effective contact with people in the host
countries, which are useful or gratifying to them,
or which underscore common interests and goals.
They should work closely and intelligently with
affiliated or counterpart organizations in host
countries and enlist their full cooperation. They
should plan projects carefully and realistically.
They should screen prospective partici))ants care-
fully and prepare and assist them in every way to
assure the success of the project. Where they
select or finance participants, they should give due
consideration to types of people who can contribute
not only to the specific pui-poses of the particular
project but also to the broader goals of coopera-
tion and understanding.

One attempt to do so is that of the U. S. Na-
tional Commission for Unesco, which at a regional
conference last September at the University of
Minnesota included "The American as Tourist and
Host" as one of its principal topics. The Com-
mission is pursuing this matter further and hopes
to include the same topic in the series of Citizen
Consultation Conferences which it will sponsor
in various parts of the country during the current
year. Such conferences could stimulate broader
interest in this problem and prompt other civic
organizations to discuss it.

These are sizeable objectives. To attain them,
all classes and types of travelers should be reached.
The most effective channels are those near at
hand — the mass media, authorized publishers,
travel agencies, transportation companies, and au-
tomobile clubs, the organizers of various types of
group travel, and the sponsors of interchange pro-
grams. New channels should be developed and
additional organizations and agencies should be
persuaded to participate. The stimulation of

Aloy 3, 7954

667

widespread interest should result in more publi-
cations, more travel plans, more projects, and
more sponsors.

ilass media, the travel agencies, and the trans-
portation companies are especially important chan-
nels of influence on individual travelers. Within
the natural limitations of what they can do, they
would doubtless welcome suggestions as to what
more can be done. The same thing is no doubt
true of publishers and authors of travel books and
guides and the travel editors of newspa])ers and
magazines. Many techniques developed by the
sponsors of organized travel might be considered
for their applicability to individual travelers. In
fact, the mere exchange of information and experi-
ence among all interested agencies and organiza-
tions would undoubtedly pay dividends.

Needless to say, all who are interested in this
problem should keep in mind that effective under-
standing of otlier peoples is not necessarily best
attained by head-on attack. On the contrary, it
is more often a byproduct of other, more specific
activity. Nor is a true picture of this country —
its aims and motives — best achieved by mere talk;
conduct counts for far more. They should also
season their plans, activities, and aims with some
such thoughts as Dr. Samuel Johnson's. "The use
of travel," he said, "is to regulate the imagination
with reality and, instead of thinking of how tilings
may be, to see them as they are."

• Mr. Colligan, author of the above article^ is
Deputy Director of the International Educational
Exchange Service.

Conversations in London and Paris
Concerning Indochina

Statement iy Secretary Dulles ^

White House press release dated April 19

I have reported to President Eisenhower on my
recent trip to London and Paris, where I discussed
the position in Indochina.

I found in both Capitals recognition that the
armed Communist threat endangered vital free
world interest and made it appropriate that the
free nations most immediately concerned should
explore the possibility of establishing a collective
defense. This same recognition had already been
expressed by other nations of the Southeast Asian
area.

The Communists in Viet-Nam, spurred on by
Ked China, have acted on the assumption that a
quick, easy victory at Dien-Bien-Phu would open
the door to a rapid Communist advance to domi-
nation of the entire Southeast Asian area. They
concluded they were justified in recklessly squan-
dering the lives of their subjects to conquer this

' Made at Augusta, Ga., on Apr. 19.

strongpoint so as to confront the Geneva Confer-
ence with what could be portrayed as both a mili-
tary and political victory for communism.

The gallant defenders of Dien-Bien-Phu have
done their part to assure a frustration of the Com-
munist strategy. They have taken a toll such that,
from a military standpoint, the attackers already
lost more than they could win. From a political
standpoint, the defenders of Dien-Bien-Pliu have
dramatized the struggle for freedom so that the
free world sees more clearly than ever before the
issues that are at stake and once again is drawing
closer together in unity of purpose.

The Communist rulers are learning again that
the will of the free is not broken by violence or
intimidation.

The brutal Soviet conquest of Czechoslovakia
did not disintegrate the will of the West. It led
to the formation of the North Atlantic Treaty
alliance.

The violent conquest of the China mainland fol-
lowed by the Korean aggression did not paralyze
the will of the free nations. It led to a series of
Pacific mutual security pacts and to the creation
under the North Atlantic Treaty of a powerful
defensive force-in-being.

The violent battles now being waged in Viet-
Nam and the armed aggressions against Laos and
Cambodia are not creating any spirit of defeatism.
On the contrary, they are rousino; the free nations
to measures which we hope will be sufficiently
timely and vigorous to preserve these vital areas
from Communist domination.

In this course lies the best hope of achieving at
Geneva the restoration of peace with freedom and
justice.

In addition to discussing with the President the
situation in Indochina, I reported to him with
reference to the Korean phase of the forthcoming
Geneva Conference which opens on April 26.

At Berlin the Soviet Union agi-eed that "the
e.stablishment, by peaceful means, of a united and
independent Korea would be an important factor
in reducing international tension and in restoring
peace in other parts of Asia." ^ To achieve that
goal is the purpose of the conference which will be
held between the representatives of the Soviet
Union and of the Chinese and North Korean Com-
munist regimes, and the representatives of 16
nations which participated, under the United Na-
tions Command, in the defense of the Republic of
Korea.

The United States, working in close consulta-
tion with the Republic of Korea and the represent-
atives of the other allied nations, will adhere
steadfastly to this purpose of establishing by
peaceful means a united and independent Korea.

I also discussed with President Eisenhower tlie
prospective meeting of the Nato ministerial coun-
cil to be held in Paris on April 23. Since the
military program for Nato has now been estab-

' Bulletin of Mar. 1, 19.54, p. 317.

668

Department of State Bulletin

lished on a stable and durable basis, this particu-
lar ministerial meeting will be confined to an ex-
change of views between the foreign ministers with
reference to the worldwide political situation as
affecting the Nato members.

In preparation for this meeting I reviewed with
President Eisenhower the United States estimate
of the world situation and the persistence in vary-
ing forms of the menace of Soviet communism
■which makes it imperative that thei'e be collective
measures to meet that menace.

Tlie President expressed his great personal sat-
isfaction that Nato, as it completes its fifth year,
has already made a large contribution to peace and
faces the future witli a prospect of growing
strength and unity.

I leave for Geneva confident that the Western
Allies are closer than ever before to a unity of pur-
pose with respect to world problems, not only of
the West, but of the East.

Secretary Dulles Leaves
for Paris and Geneva

statement by the Secretary

Press release 207 dated April 20

I am leaving for Paris where there is a meeting
of the Nato Council on Friday [April 23]. On
Saturday I shall go on to Geneva for the confer-
ence on Korea and Indochina. This conference
has been called pursuant to the Berlin agi'eement
of the Foreign Ministers of the United States,
France, the United Kingdom, and the Soviet
Union.^

It is important to bear in mind what this Geneva
Conference is and what it is not.

The first stated subject of the conference is "the
establishment, by peaceful means, of a united and
independent Korea." Twenty nations have been
invited to meet at Geneva to deal with this topic.^

The other subject to be discussed is the "problem
of restoring peace in Indochina." So far there
has been no determination of the interested states
which will be invited for this phase of the confer-
ence.

That is what the Geneva Conference is. There
are some things it is not. It is not a "Big Five"
Conference. The Soviet Union tried to make it
that, but gave way before the combined opposition
of France, Great Britain, and the United States.

The conference is not to discuss international
problems generally. This was sought by the So-
viet Union. But that concept was rejected in the

' Bulletin of Mar. 1, 1954, p. 317.
'Ibid., Mar. 8, 1954, p. 347.

face of the opposition of the three Western
Powers.

The conference does not imply our diplomatic
recognition of Communist China. On the con-
trary, the Berlin agreement expressly stipulated
that neither the invitation to nor the holding of
the conference should imply diplomatic recogni-
tion where it is not already accorded. This proviso
on which the United States stood absolutely firm
was accepted reluctantly by the Soviet Union
during the closing minutes of the Berlin
conference.

There is some evidence that the Soviet Union
may attempt to make the Geneva Conference some-
thing other than what had been agreed upon at
Berlin.

The United States believes that the foundation
for any relaxation of international tensions is a
scrupulous observance of international agree-
ments. We shall expect the Berlin agreement to
be complied with both by the Soviet Union, which
was one of the parties "to the agreement, and by
the other Communist regimes which come to
Geneva pursuant to an invitation to meet on the
terms set out in that agreement.

The United States is going to this Geneva Con-
ference determined to seek in good faith the estab-
lishment of a genuinely united and independent
Korea. We also accept the view that, if Korea
can be made united and independent by peaceful
means, this will make it easier to restore in Indo-
china a peace which has been broken by Commu-
nist armed aggression. We shall strive to achieve
that peace on honorable terms consistent with the
independence of Viet-Nam, Laos, and Cambodia —
States which are now threatened.

E'ver since the Berlin agreement to seek peace
in Indochina, the Communist forces have stepped
up the intensity and scope of their aggression.
They have expended their manpower in reckless
assaults apparently designed to improve their
bargaining position at Geneva. It is tragic that
war should be used and the lives of so many tens
of thousands should be sacrificed as an instrument
of political policy.

This is not a good prelude to Geneva. Never-
theless, we shall not be discouraged nor shall we
grow weary in our search for peace.

U. S. Delegation to Geneva Conference

U.S. Representative

John Foster Dulles, Secretary of State

Special Assistant

Roderic L. O'Connor

Coordinator

U. Alexis Johnson, Ambassador to Czechoslovakia

Special Advisers

Theodore Achilles, Deputy Chief of Mission, Paris

May 3, 1954

669

Robert R. Bowie, Director, Policy Planning Staff
Vice Admiral Arthur C. Davis, United States Navy
Donald R. Heath, Ambassador to Kingdoms of Cambodia

and Laos, and State of Viet-Nam
Douglas MacArthur, II, Counselor

Carl AV. McCardle, Assistant Secretary for Public Affairs
Herman Phleger, Legal Adviser
Walter S. Robertson, Assistant Secretary for Far Eastern

Affairs

Advisers

Phillip E. Barringer, Department of Defense
Philip W. Bonsai, Director, Office of Philippine and South-
east Asian Affairs
.John Calhoun, American Embassy, Seoul
Lt. Col. John E. Dwan, II, United States Army
Col. Robert G. Ferguson, United States Army
AVilliam Gibson, American Embassy, Paris
John Hamilton, United States Information Agency
Louis Henkin, Office of United Nations Affairs
John Keppel, American Embassy, Moscovf
James F. King, Department of Defense
Edwin W. Martin, Deputy Director, Office of Chinese

Affairs
Robert H. McBride, Officer in Charge, French-Iberian

Affairs
Charles C. Stelle, Policy Planning Staff
Charles A. Sullivan, Department of Defense
Ray L. Thurston, Deputy Director, Office of Eastern Euro-
pean Affairs
Lt. Col. John Vogt, United States Air Force
Kenneth T. Young, Director, Office of Northeast Asian
Affairs

Press Officer

Henry Suydam, Chief, News Division

Deputy Coordinator and Secretary of Delegation

Basil Capella

Meeting of NAC Ministers

TEXT OF COMMUNIQUE OF APRIL 23

At a ministerial meeting held in Paris today,
five years after the treaty was signed, the North
Atlantic Council reviewed the progress made by
the organization, examined the present interna-
tional situation, and exchanged views on problems
of common interest. The meeting was attended by
the Foreign Ministers of the member governments
under the chairmanship of M. Bidault.

The Vice-Chairman and Secretary General,
Lord Ismay, reported on the work of the organi-
zation. His survey emphasized the effective work-
ing relationship developing within the alliance, a
relationship which goes beyond the formal obli-
gations assumed by its members. The Foreign
Ministers took this opportunity to reaffirm their
association in the Atlantic alliance as fundamental
to the policies of their respective governments.

Recalling the defensive and peaceful aims of the
treaty, they expressed their resolve to maintain and
develop the alliance not only as the firm basis for
the collective defense of their peoples, but also as
an enduring association for common action and
cooperation between the member states in every
field.

After discussing international developments
since its last meeting, the council found no evidence
that the ultimate aims of the Soviet Union had
altered, and noted that the military strength of
the Soviet Union and its satellites continues to in-
crease. Tlie council therefore once more agreed
upon the need for continuing efforts, vigilance and
unity.

The council — reaffirming its long-established po-
sition that the institution of the European Defense
Community is in the essential interest of the alli-
ance— welcomed the ratification of the EDO
treaty by a number of the signatories since the last
Ministerial Meeting, which brings closer the entry
into force of the treaty. The council also expressed
its gratification at the far-reaching steps taken by
the Governments of the United Kingdom and
United States towards cooperation with the Eu-
ropean Defense Community,^ thus ensuring their
lasting and close association with the defense of
the continent of Europe.

With regard to the recent declaration by the
Soviet Government on the status of their zone of
occupation in Germany,^ the council noted with
approval that member governments of the organ-
ization liad no intention of recognizing the sov-
ereignty of the so-called German Democratic
Eepublic or of treating the German authorities
tliere as a government. It decided that the per-
manent representatives should draw up a resolu-
tion on this subject.

The council, with a view to developing further
the habit of political consultation in the council,
adopted a resolution on that subject, the text of
which has been published separately.^

The council paid tribute to the gallantry of the
French Union forces fighting in Indochina. It
expressed the hope that the Geneva Conference will
have positive results.

' Bulletin of Apr. 26, 1954, p. 619.

' For text of a Department statement on this declara-
tion, see Hid., Apr. 5, 1954, p. 511.

"The resolution recommends "(A) that all member
governments should bear constantly in mind the desira-
bility of bringing to the attention of the Council infor-
mation on international political developments whenever
they are of concern to other members of the Council or to
the Organization as a whole; and (B) that the Council
in permanent session should from time to time consider
what specific subject might be suitable for political con-
sultation at one of its subsequent meetings when its mem-
bers should be in a position to express the views of their
governments on this subject."

670

Department of State Bulletin

U.S. Protests Actions of
Soviet Union in Germany

FoUoioing is the text of a protest sent on April
£3 by Walter Doivling, Acting U. S. High Com-
missioner for Geiinany, to the Soviet High Gomr-
Tnissioner, Vladiinir Semenov :

The Acting United States High Commissioner
wishes to advise the High Commissioner of the
U.S.S.R. of the following facts.

On 20 February lt)5-± a citizen of the Union of
Soviet Socialist Republics presented himself be-
fore authorities of the United States of America
in Frankfurt am Main, which is located in the
Zone of Germany mider United States jurisdic-
tion, requesting protection and asylum as a politi-
cal refugee.

The applicant identified himself as Nikolai
Evgeniyevich Ivliokhlov, officer assigned to the 9th
Otdel of the Second Chief Directorate of the Min-
istry of Internal Affairs (MVD), Government of
the Soviet Union, and stated that he had come to
the Federal Republic of Germany by order of the
Soviet Government to carry out the assassination
of Georgiy Sergeyevich Okolovich, a resident of
the Federal Republic of Germany and a stateless
l^erson of Russian origin.

With respect to his mission of assassination the
applicant gave the following details :

In the fall of 1953 he was chosen by the Soviet
Government to carry out the assassination of
Okolovicli. He therefore flew to the Eastern Sec-
tor of Berlin, Germany, where he met Hans
Kukowitsch and Kurt Weber, both residents of
Berlin, whom he conducted to Moscow in Novem-
ber. Kukowitsch and Weber were trained in Mos-
cow in the use of assassination weapons and were
returned to Berlin on IS December 1953.

On 14 January 1954 Khokhlov proceeded by
Soviet military aircraft to Vienna, Austria, under
the name of Josef Hofbauer, and there reported
to his superior officer, Saul Lvovich Okun, Lieu-
tenant Colonel of the MVD. Khokhlov met with
Kukowitsch and W^eber in Zurich, Switzerland, on
13-14 February, after which the three men pro-
ceeded to Frankfurt am Main by separate routes.

On 18 February 1954 shortly after 7 : 00 p. m.
Khokhlov went to the house of Okolovich, identi-
fied Iiimself, and stated that the Government of
the Soviet Union had assigned him the mission
of assassinating Okolovich, at some convenient
time prior to 20 March 1954, but that he had no
intention of carrying out these orders which were
repugnant to his conscience and contrary to hu-
manitarian principles. After discussions with
Okolovich, Khokhlov surrendered himself to offi-
cials of the United States Government on 20 Feb-
ruary 1954, requesting asylum and protection. On
25 February 1954, Kukowitsch and Weber were
taken into custody by United States officials in

Frankfurt am Main, and confessed their complic-
ity in the assassination attempt described herein.

In the possession of Kukowitsch and Weber were
assassination weapons consisting of two automatic
7mm. noiseless pistols and two devices disguised
as cigarette cases containing an electrically oper-
ated mechanism for the discharge of poisoned
pellets.

Mr. Khokhlov has not only requested the asylum
and protection of this Government, but has more-
over besought on humanitarian grounds its good
offices to make representations to the Government
of the Soviet Union to permit and arrange the
travel of his wife, Yelena Adamovna Klioklilova,
together with their infant son, Alexander Niko-
layevich Kliokhlov, pre.sently residing at Don 5,
Kuartira 13, Krivonikolski Pereulok, Moscow, tel-
ephone number 3-91-95, to the Federal Republic
of Germany to rejoin him.

The foregoing events, which were followed on
15 April 1954 by the brutal kidnapping in Berlin
of Alexander Truslinovich, a prominent stateless
person of Russian descent and an associate of
Georgiy Sergeyevich Okolovich, indicate a delib-
erately outrageous and uncivilized course of con-
duct on the part of the Government of the Soviet
Union against which the Acting U.S. High Com-
missioner protests in the most vigorous terms.

U.S. Loan to European Coal
and Steel Community

TEXT OF COMMUNIQUE

Press release 210 dated April 23

Following is the text of a comm/unique issued on
April 23 hy the Government of the United States
and the High Authority of the European Coal and
Steel Community:

The United States Government and the High
Authority of the European Coal and Steel Com-
munity have completed arrangements for a loan of
$100 million by the United States to the High
Authority, to be made available at this time for
the purjDose of assisting in modernizing and devel-
ing the natural resources of the Community.

This is the first time a loan has been extended to
the European Community, as distinct from sepa-
rate nations. It is a concrete expression of sup-
port by the United States Government to the Eu-
ropean Coal and Steel Community in accordance
with the policy of encouraging European unitj' as
declared by Pi-esident Eisenhower and the Con-
gress.

For the future capital requirements of the Coal
and Steel Community it is essential that capital
both in the United States and abroad be encour-
aged to provide the investment funds necessary for
the normal growth of Europe's basic industries.

May 3, 7954

671

The United States Government and the High Au-
thority in continuing negotiations will together
seek new means by which with the assistance of
the Govermnent the mobilization of private capital
for such investments can be promoted.

The terms of the present loan have been incor-
porated in an agreement between the United States
Government and the High Authority which lias
been signed on April 23. This agreement provides
that the loan will bear interest at S^g percent and
be repayable over a period of 25 years.

The proceeds will be used by the High Author-
ity to make loans to enterprises within the Com-
munity in order to assist in developing facilities
for the production of coal, coke and iron ore; pro-
viding additional housing for miners; and con-
structing and modernizing power stations at the
pit heads to facilitate the economic use of low-
grade coal. The loans will go to projects which
are considered by the High Authority to be consist-
ent with the operation of a common market within
the Community, free from national barriers and
private obstruction to competition.

The United States took tlie occasion of the nego-
tiations to advise the High Authority that it is
consulting with some of the member countries of
the Community on the lifting of quota restrictions
maintained by them on United States coal. Rep-
resentatives of the High Authority assured tlie
United States that the Community is committed to
the maintenance of a high level of trade with the
rest of the world for coal and steel and that the
removal of such quota restrictions on imports of
coal is not precluded by any provisions of the
Community's treaty.

The occasion was also used to discuss the pros-
pects of maintaining and increasing competition
in the markets for coal and steel within the Com-
munity. It was recognized in the discussions that
considerable progress has been made in this direc-
tion over the past year.

TEXT OF REMARKS MADE AT
SIGNING CEREMONY

Press release 212 dated April 23

Walter B. Smith, Acting Secretary of State

This agreement we are signing today between
the United States Government and the High
Authority of the European Coal and Steel Com-
munity has historic significance. In its broad
context this agreement affords concrete evidence
of our profound interest in the movement toward
European unity, which the President and the Con-
gress have so consistently supported as an essential
ingredient of our collective endeavors to attain
lasting security and peace. In an economic sense
the loan represents a sound business transaction
which should be mutually beneficial to both parties.

672

It is our earnest hope that the European Coal
and Steel Community will successfully achieve its
objectives and thereby provide a solid foundation
for further progress toward unity in free Europe.

Jean Monnet, President of the High Authority

Mr. Secretary :

The agreement which today you have signed on
behalf of the United States Government with my
colleagues and myself, who are acting on behalf of
the European Coal and Steel Community, is an
event the significance of which goes beyond even
the importance of the loan itself. Indeed this is
the first agreement — I will almost say treaty —
signed between the Government of the United
States and United Europe.

You know that the European Coal and Steel
Community is not coal and steel only, but is indeed
the beginning of the creation of Europe. In this
beginning six countries of Europe: Belgium,
France, Germany. Italy, Luxembourg, ancl the
Netherlands, have joined in transferring part of
their traditional sovereignty to common institu-
tions. These institutions have authority over the
coal and steel resources of the six countries, and
the immediate responsibility to create a common
market without barriers or discriminations and to
establish the basis of a dynamic and expanding
economy.

We are not limiting this great enterprise to the
six countries alone; indeed any European country
that will accept the principles, rules, and demo-
cratic institutions of the Community can join.

We have already, in the field of coal and steel,
created the European common market of 160
million consumers. The ultimate object is to elim-
inate all the barriers that have existed between
European countries for so many centuries and to
do away with the oppositions that have been the
cause of the past wars. We are striving finally
to unite the people of Europe themselves.

The loan which your Government has gi-anted
to the Community reflects in its commercial terms
the established credit of the High Authority and
the determination of your Government to continue
to support our efforts in building this strong and
united Europe so essential to the preservation of
peace.

In the name of my two colleagues, who will now
sign the agreement with me, and of the High
Authority, I wish to assure you and the Govern-
ment of the United States, of our appreciation
for the support which you are giving us in this
great enterprise.

Heinz Potthoff, Member of the High Authority

[Translation]

We are very glad that we now have the oppor-
tunity to further our raw material industries by
contributing to their investments. These negotia-
tions are the first step which will certainly be

Dspartmeni of Sfafe Bulletin

followed in a short time by other steps. I, too,
thank American opposite numbers in the negotia-
tions for the understanding and sympathy which
they have shown us in every phase of the talks.

Emo Giacchero, Member of the High Authonty

[Translation]

Mr. Secretary :

I am glad to be able to say a few words on this
solemn occasion, not so much because it enables me
to give an Italian voice to the expression of this
European principle that we represent, but because
I would like to formulate an idea that in my view
ought to be put forward today.

All those Europeans who, as I do, believe in and
work for the integration of the six countries of
the Connnunity and for extension of this Com-
munity to other European nations, have all un-
doubtedly drawn much of their conviction from
the historical and political development of the
United States. Today, we can say that the United
States is not only at the root of our political in-
spiration (because modern federalist thought has
its main source in Hamilton, Madison, and Mar-
shall) but also that with the Agreement now just
signed the United States has given material sup-
port to the achievement of European integration
itself.

I hoije that at the end of the road our common
aspirations will not be disappointed and that it
will be clear to alL even to those who today are
opposing us, that European unity is, if I am al-
lowed to paraphrase Abraham Lincoln, "the last,
best hope of Europe."

Registration of Belgian
and Congolese Securities

Press release 211 dated April 23

The Department draws the attention of U.S.
holders of certain securities issued in Belgium or
the Belgian Congo to the following notice drafted
by the Belgian Government. The notice requires
U.S. holders of such securities as were formerly
or are now on deposit in Germany to register these
securities by May 28, 1954, or else the securities
will be invalidated. It is believed that American
citizens and former Nazi persecutees, now resident
in the United States, may be aflfected by the notice.

A Belgian law of November 10, 1953, provides
for the registration of the Belgian securities in
those countries, e. g. in Germany, in which the
registration of these securities pursuant to the
decree-law of October 6, 19-1-1:, concerning the
Belgian and foreign securities has not yet been
carried out.

The securities covered by the law can only be
validated if it can be proved that they were sub-
May 3, J954

297040—54 3

sequent to May 10, 1940, and without interruption
tlie property of

(1) Belgian nationals, nationals of allied or
neutral countries, or

(2) nationals of former enemy countries who
pursuant to the provisions of the law of July 14,
1951, concerning the sequestration and the liqui-
dation of German rights, assets, and interests were
granted removal of the sequestration.

In principle, the registration extends to all
bearer securities regardless of designation wliich
have been issued by public authorities in Belgium
or in the Congo area by Belgian joint-stock com-
panies, Belgian trustee associations, limited liabil-
ity companies in the Congo area, and by the
association "Comite National du Kivu."

However, bearer bonds which have been issued
by Belgian public authorities or Belgian com-
panies are considered foreign securities and are
exempt from registration if they are denominated
in foreign currency. Applications are to be
handed to the Belgian Ministry of Finance, Serv-
ice du Recensement des Titres, Brussels, Rue Bel-
liars, at latest by May 28, 1954, and are to be
submitted to the Belgian Embassy in Bonn, 10
Friedrich-Wilhelmstrasse, by May 15, 1954.

The following documents and data are to be filed
together with the notification :

1. An application signed by the holder of the
securities showing the name. Christian name, trade,
nationality, and residence of the holder as well
as of the custodian, if any, and quantity, exact
designation, and number of the securities;

2. All documents which serve the pui-pose of
jiroving that the above-mentioned securities were
actually deposited within German territorly on
October?, 1944;

3. All documents which furnish proof that these
securitie sare actually the property of the named
holder from a date prior to October 6, 1944.

If the holder acquired these securities only sub-
sequent to May 9, 1940, he must produce the fol-
lowing documents :

{a) a list showing in chronological sequence the
names of all those persons to whom these securities
have belonged since the above-mentioned date ;

{h) documents showing any changes of owner-
ship; and

(c) the jDroof that the first mentioned holder
of the securities actually was the owner on May 9,
1940.

The name. Christian name, ti-ade, nationality,
and residence of each of the owners shall also be
specified on this list.

4. If the holder is a German national he shall
furnish a certificate from the Belgian sequestra-
tion office to the effect that the sequestration cover-
ing his securities in Belgium and the Congo area
has been lifted.

673

All documents specified under items 2 to 4 shall
carry the names of all persons participating in
changes of ownership and show the numbers of
the secm-ities. The present owner, as well as any
of the persons mentioned in item 3 (a), may also
be requested to produce a certificate concerning his
nationality.

Applications already filed need not be renewed.
If the Belgian Ministry of Finance grants the re-
quest for a declaration of validation, this Min-
istry will fulfill the necessary formalities with the
"Banque Nationale de Belgique" in the name of
the holder of the securities. The holder of the
securities will be furnished with a certificate al-
lowing him to sell the securities or to use them
for other approved transactions.

If the application for a declaration of validation
has not been submitted to the Belgian Ministry
of Finance prior to May 28, 1954, or if the appli-
cation filed cannot be accepted, the securities will
be invalidated and their value awarded to the
Belgian State.

FOA Allots Funds to Greece
and the Netherlands

The Foreign Operations Administration on
April 7 announced new allotments of $10 million
for Greece and $4 million for tlie Netherlands
from mutual security progi-am funds of the cur-
rent fiscal year.

The new funds for Greece, in addition to $1
million allotted last September and $4 million in
November, are made available to support the Greek
defense effort. The $10 million allotment will
finance the procurement of agricultural connnodi-
ties as well as chemicals, fuels, and other Greek
dollar import requirements.

Tlie allotment for the Netherlands, which will
finance the procurement of surplus cottonseed oil
in the United States, has been made under the
provisions of section 550 of the Mutual Security
Act of 1953. This section provides that between
$100 million and $250 million of mutual security
appropriations for the current fiscal year shall be
used to fiiumce surplus U.S. agricultural commodi-
ties to be sold to friendly countries for local
currencies.

The equivalent of $4 million in Netherlands
guilders, derived from the sale of the cottonseed
oil, will be used for degaussing the Dutch merchant

fleet. Degaussing is a process which neutralizes
the magnetic properties of steel ships as a safe-
guard against magnetic mines.

FoA has now made available a total of $206,-
650,000 Under section 550 to finance such surplus
commodity sales to the United Kingdom, Federal
Republic of Germany, Norway, China (Formosa),
Finland, Yugoslavia, Israel, Spain, Afghanistan,
Japan, France, and the Netherlands.

Voluntary Agencies To Aid in
Technical Cooperation Program

The Director of the Foreign Operations Ad-
ministration, Harold E. Stassen, on April 8 an-
nounced plans for developing closer relationships
with voluntary agencies in the technical coopera-
tion programs of Fo.v. These agencies are pri-
vate, nonprofit organizations of a philanthropic or
religious nature.

This is the second step taken in recent months
by FoA to increase the active participation by
j)rivate nongovernmental groups in U.S. programs
of cooperation with the free peoples in the less
developed countries of the Far East, Near East,
Asia, Africa, and Latin America. Earlier, Mr.
Stassen announced that nuiny of next year's proj-
ects would be carried out through the use of 1, 2,
and 3 year contracts with American universities
and land-grant colleges.

Mr. Stassen said:

In our world-wide reviews of the Foa programs, we
liave seen evidence of very beneficial results from pro-
grams emphasizing a "people-to-people" approach.
Through closer relationships with the voluntary groups,
the colleges and universities, we liope to draw on the
wealth of exjjerience and technical knowledge that these
groups have gained in conducting their own programs of
a similar nature — both in the United States and abroad.

Many of the voluntary agencies have pioneered in work
with people of the underdeveloped lands and have gained
their confidence and respect. We recognize the valuable
contributions their exi)erience can make toward achiev-
ing objectives which they share with Foa.

Under the new plan, private nonprofit organiza-
tions experienced in operations outside the United
States will be invited to play a more active long-
range role in the Foa technical cooperation pro-
grams. The new arrangements with the volunteer
groups will be of both a contractual and non-
contractual nature.

674

Department of State BuUetia

Observance of Pan American Day

Addresses hy Henry F. Holland

Assistant Secretary for Inter-American Affairs

THE AMERICAN STATES:
THE HOUSE OF FREEDOM >

It is a privilege, and a very great pleasure, to
meet with you here in the House of the Americas
on Pan American Day.

It is an impressive and moving experience for
one who has so recently entered into the duties
and responsibilities of my office to come to this
historic council table around which the representa-
tives of the 21 sovereign and independent repub-
lics of this hemisphere have gathered for so many
years in an atmosphere of freedom and equality.

It is particularly gratifying to me to have this
opportunity to participate in this ceremony with
the distinguished members of the Council of the
Organization of American States.

The opportunity accorded me last month at
Caracas of working with some of you, and with so
many other eminent statesmen of the sister Re-
publics, in the day-to-day labor of the Tenth
Inter-American Conference,' will remain with me
as one of the most valuable experiences of my life.
I should like to take this opportunity to express
again the sincere appreciation of my Government
for the magnificent manner in which the Govern-
ment of Venezuela prepared for and conducted
the Tenth Inter- American Conference, and for the
cordial hospitality which was extended through-
out the meeting.

Let me include most especially among those with
whom it was an honor to work Dr. Alberto Lleras
Camargo, Secretary General of the Organization
of American States, whose resignation all of us
deeply regret and whose successor, whoever he may
be, will find his own work the easier and the more
productive because cf the soil that has been tilled
by so able a husbandman. I am confident that
this Council will wish to set about the extremely

' Made at the Extraordinary Meeting of the Council of
the Organization of American States, at the Pan American
Union, on Apr. 14 (press release 195 dated Apr. 13).

' For a rejiort on the Conference, see Bulletin of Apr.
26, 1954, p. 634.

difficult task of selecting a successor to Dr. Lleras
with all the wisdom and deliberation that the
decision demands.

A Pattern for International Fellowship

The environment of the Pan American Union,
like the environment of the Inter-American Con-
ference, is one of friendship and cooperation. The
Organization of American States, this congi'ess
of our 21 Republics which is an example and a
pattern for fellowship among nations, has a con-
tinuing responsibility to prove to the rest of the
world the soundness of enlightened cooperation
among nations. Abraham Lincoln expressed an
important concept of our relationship when he
said "I shall do nothing in malice, for what I deal
with is too vast for malicious dealing."

In this House of the Americas, and on this Pan
American Day, we can summon up, each one of us
for all the i-est, the gi-acious, traditional Hispanic
plirase : "You are in your house."' In this hemi-
sphere we have learned the validity of that phrase,
neighbor to neighbor, nation to nation. As in-
dividuals we have learned to feel at home any-
where in our America, with its vast roof over
arching Rockies and Andes. Mi-ssissippi and Ama-
zon, extending from Pacific to Atlantic and from
Arctic North to Antarctic South. It is the home
of freedom, the haven of peace, and within its
mighty structure tlie 21 Republics of this hemi-
sphere prove from experience that in cooperation
is strength and security.

It is no exaggeration to say that the active, ef-
fective cooperation of the American Republics
during more than a half century has blazed a trail
through the wilderness of international suspicion
and conflict. Antedating the United Nations, and
in considerable measure affording the lessons of
experience for its workings, the Organization of
American States is one of the regional groupings
tlir(;ugh which tlie U.N. Charter is strengthened
and made more effective. Similarly, the Rio
Treaty, a forerunner of the North Atlantic Treaty
and other regional pacts, has helped cement col-
lective security.

May 3, 1954

675

In spite of the dark clouds which remain so
ominously on the world horizon, I do not falter
in my conviction tliat the world is moving toward
greater security through collective effort and ever-
extending respect for the essential dignity of man.
I am, however, aware, as I know each one of you
is aware, that hemisphere solidarity is one of the
surest barriers to prevent the aggressors' encroach-
ments on human freedom.

Moves by Enemies of Freedom

While the Americas stand staunch in their inter-
dependence, the hordes of hatred and violence will
be deterred, and overcome. But let us not forget
that eternal vigilance is still the price of liberty.
Precisely because our mutual strength is great, our
solidarity powerful, we are severally and collec-
tively undergoing the test of our strength. "Wliere
would the enemies of freedom find greater advan-
tage in striking — continually, secretly and with
venom — than against the house of freedom? We
know that by infiltration, by overt and covert
propaganda, by attempts to sow dissension and
distrust, forces from outside the hemisphere are
continually making it necessary for the American
Republics to affirm their interdependence and their
confidence one in another. It is for this reason
that I am so thoroughly convinced of the impor-
tance of the foreign policy declaration made at
Caracas against the eflForts of the international
Communist movement to dominate or control the
political institutions of an American State —
against its intervention in our internal affairs.

It may be that it is too early to try to assess in
realistic terms all of the accomplishments of the
Tenth Inter-American Conference. So far as this
Council is concerned, however, it is quite clear that
the Conference has given it an emphatic vote of
confidence. It has fully recognized the important
work which the Council can carry out through care-
ful and detailed consideration of problems of
major importance, especially in the preparation of
treaties and other instruments in the form in which
they can be presented to the governments for final
approval. Resolution 4G of the Final Act of the
Conference entiiists to the Council certain types
of activity which, if this resolution is adequately
implemented, will afford the Council an opportu-
nity to exercise that influence upon the functioning
of the Oas which the representatives of our Gov-
ernments gathered here should at all times be in a
position to exercise.

Furthermore, several resolutions a.ssign to the
Council specific work in the preparation of drafts
or revisions of such instruments as the Protocol on
Duties and Rights of States in the Event of Civil
Strife, and the Statutes of the Inter-American
Peace Committee. To the Council has also been
assigned the solution of problems related to the
need for revision of the Pact of Bogota and to a
possible statute of an Inter- American Court of

676

Justice. In its normal executive functions, of
course, the Council must also review and establish
priorities, within the resources which are or may
become available, for the carrying out by the Pan
American Union and other organs of the Oas of
the numerous projects or progi'ams which were
held to be suitable or desirable in one or another
of the resolutions approved at the Conference.

In the economic field, the work of the Ia-Ecosoc
in preparation for the important meeting in Rio
de Janeiro is perhaps even more pressing and ur-
gent. The Tenth Conference took special pains
to reemphasize the importance of the economic
responsibilities of the system and to suggest meas-
ures for the strengthening of that body. The In-
ter-American Economic and Social Council, which
contributed so signally to the success of the Fourth
Meeting of Ministers of Foreign Affairs in Wash-
ington in 1951, in connection with emergency
measures arising out of the Korean crisis, has been
entrusted, as you know, with the diflicult and
highly important task of preparing for the Meet-
ing of Ministers of Finance or Economy, to be
held in Rio de Janeiro later this year. This, to
my mind, demonstrates the esteem in which the
Council is held. It is truly a forum in which all
of our countries can discuss their economic prob-
lems, and it is my hope that, as a result of its work
in coming months, a wide area of agreement will
be worked out even before the Ministers assemble
in Brazil.

My own experience and knowledge of the work-
ings of this regional organization of the American
States has been very brief — if somewhat intensive.
However short, it has been most impressive. This
process of education has confirmed for me concepts
about the I'elationships among the independent
nations of this hemisphere which I have developed
in a number of years of active work which carried
me at one time or another to many of the countries
you represent. I hope before many months to
have visited or revisited all of your countries.

The concepts and principles which give mean-
ing to our inter-American relationship are all em-
bodied in the charter of the Organization. What
these things mean in practice, however, is that
the representatives of 21 governments, covintries
which are divergent in many significant respects,
can and do meet together, whether in an mter-
American conference or here in this Council
Chamber, with mutual respect stemming from
equality before the law; with a willingness to
listen to differing or completely opposing points
of view; with confidence that aggression among
the members of the community is a thing of th&
past; and without fear that the more powerful
will interfere in the sovereign affairs of the small-
est. The relationship which has been built among
the nations of this hemisphere is unique in the
history of the world. Let us preserve it and hope
that, by example, it will continue to illustrate to
the rest of the world the validity of Bolivar's pro-

Department of Sfate Bulletin

phetic declaration, which can never lose its im-
mediacy or its veracity, that in the freedom of
the Americas is the hope of the world.

HIGHLIGHTS OF

LATIN AMERICAN ARCHEOLOGY »

Every year at this period, throughout the
American Republics, inter-American solidarity is
celebrated, and our 21 Republics call to mind the
fundamental likenesses underlying our differences.
Certainly it is salutary for us all to keep fresh in
mind the great relationships of origin, tradition,
and history that linked us in the eras of discovery,
colonization, and independence; the obligations
and rewards of voluntary association which we
share today; and the unlimited promise of our
mutual future.

However, in recalling and commemorating these
aspects of our inter-American relationships, we
usually, and naturally, dwell most on the inspiring
story of how our 21 Republics achieved their in-
dependence and their present status as nations,
against the common background of a European
past, prevailingly Spanish, English, Portuguese,
or French. We often forget that other great her-
itage, the pre-Colombian cultures, has also had
great cultural influence on all our nations.

Latin American archeology as high-lighted in
these exhibits will help set the record straight. I
am informed that 2 million and more persons visit
the Smithsonian every year. That vast number
henceforward has the way made easy for observ-
ing and appreciating our pre-Colombian heritage.

I am happy that an institution so well known
in Latin America as the Smithsonian has under-
taken this fine work. In many countries of the
hemisphere scientists of the Smithsonian have
worked in close cooperation with colleagues in
their host country.

Civilization of Pre-Colombian Man

Wliatever gaps in knowledge may still exist,
and there are many, one thing about pre-Colom-
bian man in America is proved beyond all doubt.
People who were living in America in 1492 and
had been living here for thousands of years pos-
sessed complex, liiglily developed civilizations of
their own. Proofs of that fact surround us here
today. As we view this astonishing, this truly
magnificent cumulative record of such rich and
various cultures, we can comprehend the amaze-

' Remarks made at the inauguration of the "Highlights
of Latin American Archeolog.v" at the United States
National Museum, the Smithsonian Institution, on Apr.
14 (press release 196 dated Apr. 13).

ment with which 15th century Europe reacted to
a New World thronged with wonders.

At whatever point the European firstcomers
touched the Indies — our Americas — discovery of
countless things new and strange awaited them
whether in Peru, Mexico, or Guatemala.

In fact, I find one of the most interesting aspects
about this exhibition is that it covers every coun-
try in the hemisphere and yet no part of it is con-
fined to any one country. The point here is ob-
vious: The cultures of people clo not recognize
artificial boundaries and it is right that this should
be so. Nations may be justly proud of their con-
tributions to civilization but they will not try to
keep those contributions from reaching other
people.

This exhibition in its own right is a valuable
expression of the results of many years of patient
and painstaking work in exploration and recon-
struction of the origins of our people. It is even
more a symbol of the determination of the people
of the United States to know its neighbors better.

Following his visit to the South American
countries last year. Dr. Eisenhower pointed out
that one of our most important tasks was to create
better Understanding among the people of the
American Republics. As he noted in nis Report
to the President : * "Abiding cooperation among
nations toward common goals must be based on
genuine understanding and mutual respect." We
might well resolve all the political problems that
plague the young, burgeoning nations of this
hemisphere, but there would still be no firm foun-
dation for living in our community of nations if
oUr people did not understand one another. We
must know each other's past, our present ways of
life and our aspirations, national and inter-
national.

Need for Cultural Understanding

It was for this reason that my government at-
tached great importance to improving the Con-
vention for the Promotion of Inter-American
Cultural Relations at the Tenth Inter- American
Conference which recently ended at Caracas. It
was for these reasons that we presented to the
Conference a number of resolutions designed to
increase cultural interchange among us. We lent
our full support to every resolution that appeared
to hold out the hope of furthering interchange of
knowledge and skills among us. We shall con-
tinue to do all in our power to stimulate ways to
bring about mutual appreciation of our nations
and people, wherever possible increasing our cul-
tural relations program with the other American
Republics.

Recently in a message to the sponsors of the
Town Hall series of lectures on Mexico now in
progress in New York, President Eisenliower

* BxTLLETiN of Nov. 23, 1953, p. 695.

May 3, 7954

677

noted the many ways in which friendship between
the United States and that country were evident.
He dwelt at some length on how cultural and com-
mercial interchange was being fostered between
the two countries, and then observed that : "Yet
a great deal remains to be done." There can be
no question about this: Much has been done, but
much remains to be done.

The President made a further observation
wholly applicable to the lesson we learn here to
the effect that the cultures of people can have no
boundaries. He noted that the people of the
United States have much they can learn by study-
ing Mexican progress, and that the Mexican people
would undouljtedly learn some things from observ-
ing material and spiritual progress in the United
States which they might find useful in their own
development. Tlie same can be said of all the
American Republics. Progress among peoples in
history has always come about through the adop-
tion of national developments and developments
in other nations which are suited and can be
adapted to the needs of another people.

The people of the Americas will find in this
exhibition the symbol of the way to underetanding
of the past and present and the way to the future
which is theirs.

U.S. and Mexico Discuss
Broadcasting Problems

Press release 179 dated April 5

Representatives of the United States and
Mexico met at Washington, D.C., March 29-April
2, 1954, for discussions on standard band broad-
casting problems.

It was not possible to conclude an interim agree-
ment at this meeting as contemplated. However,
it was agreed to convene another meeting at.
Mexico City in October 1954 for the purpose of
negotiating an overall agreement between the two
countries on standard band broadcasting (535-
1605 kc).

Conciliation of Boundary Dispute
Between Peru and Ecuador

Press release 203 dated April 19

The United States, as one of the guarantor states
of the Protocol of Peace, Friendship and Boun-
daries of January 29, 1942, between Ecuador and
Peru, is releasing the following communique in
accordance with recommendations received from
the Committee of Representatives of the guarantor
states which sits in Rio de Janeiro. The com-
munique is also being released at Rio de Janeiro,
Santiago, and Buenos Aires, capitals of other

guarantor states, and at Quito and Lima, capitals
of the two principals which subscribed to the afore-
mentioned protocol :

"In consideration of the proposals presented by
the representatives of the guarantor states of the
Protocol of Peace, Friendship and Boundaries of
January 29, 1942 between Ecuador and Peru, ani-
mated by the desire to reestablish the atmosphere
of harmony and confidence which should prevail
among all the countries of the American continent,
decided to return, in the presence of the military
attaches of the guarantor states, in the locality of
Huaquillas, the detained Peruvians and Ecuadoran
\\ ho were being held in their respective territories,
thereby bringing to a close the regrettable differ-
ence which was threatening to perturb the friendly
relations between the two countries.

"This exchange was carried out at 3 p. m. on
April 18, 1954."

Formal Claim Filed Against
Guatemalan Government

Press release 206 dated April 20

The Department of State on April 20 presented
to the Government of Guatemala, through its
Charge d'Affaires in Washington, Alfredo
Chocano, a formal claim against the Guatemalan
Government for $15,854,849.

The claim had been filed with the Department
by the Compania Agricola de Guatemala, a wholly
owned subsidiary of tlie United Fruit Company,
in connection with the ex])ropriation in March
1953 of approximateh' 234,000 acres of land owned
by the company on or near the Pacific coast of
Guatemala. The expropriation has been the sub-
ject of several exchanges of communications be-
tween the two Governments.^

The Department of State, in its memorandum
transmitting the claim to the Government of
Guatemala, referred to earlier communications in
which the U.S. Government had raised the ques-
tion of just compensation for the properties taken
and had proposed settlement either through direct
negotiation with the company or with this Govern-
ment, or by referral to an international tribunal.
The memorandum stated that since the U.S. Gov-
ernment had thus far received no indication from
the Government of Guatemala that it favored
treating with the matter in its present stage either
through direct negotiations or by referral to an
international tribunal, the U.S. Govermnent con-
sidered it timely and warranted to submit formally
the claim on behalf of the (Compania Agricola de
Guatemala against the Guatemalan Government.

The principal items in the company's claim are
for the value of lands and betterments expropri-

'For text of a U. S. aide-memoire of Aug. 28, 1953,
see Bulletin of Sept. 14, 19.53, p. 3,'i7.

678

Deparfment of State Bulletin

ated in the Tiqiiisate area ($6,934,223) and for
resulting damage to the value of properties not
expropriated, or severance damages (S8,737,G00).
The claim sets forth that the Government of
Guatemala by a resolution of March 5, 1953, or
dered the expropriation of 233,973 acres of th

the

company's land near Tiquisate, in the west coast
region of Guatemala, of which 26,584 acres were
described in the expropriation order as excess or
untitled lands.

The company states in its claim that begimiing
in 1928 it purchased a total of over 302,000 acres
in the west coast region of Guatemala for $3,130,-
634.55; and that it had made a total investment
in facilities and betterments on its west coast prop-
erties between 1936 and December 31, 1952, of
$25,942,026.58.

The company states that due to the presence of
the Panama Disease and other factors, and the
consequent need for reserve banana lands, the ex-
propriation of lands carried out in March 1953
drastically shortened the life of the entire enter-
prise including that of the betterments, and gave
rise to the claim for damage to the value of prop-
erties not expropriated (severance damages), in
addition to the claim for the value of the lands
and betterments actually expropriated.

The present claim has no reference to the expro-
priation of 172,532 acres of land belonging to the
United Fruit Company near Bananera on the Car-
ibbean slope of Guatemala, which was announced
on Februai-y 24, 1954.

Summary Financial Report of the Executive Chairman of
the Technical Assistance Board to the Technical
Assistance Committee on Technical Assistance Activi-
ties During 1953. E/TAC/39, March 18, 1954. 7 pp.
mimeo.

Transport and Communications : Protocol on a Uniform
S.vstem of Road Signs iuid Signals. Supplementary
Note by the Secretary-General. E/2523/Add.l,
March 22, 1954. 18 pp. mimeo.

Slavery : Consultations Concerning the Desirability of a
Supplementary Convention on Slavery and Its Pos-
sible Contents. E/2540/Add.2, March 24, 1954. 3 pp.
mimeo.

Expanded Programme of Technical Assistance. Report
of the Technical Assistance Committee. E/2558,
March 25, 1954. 20 pp. mimeo.

Commission on the Status of Women : Report of the Inter-
American Commission of Women, I'resented to the
Eighth Session of the United Nations Commission on
the Status of Women. E/CN.6/249, March 25, 1954.
28 pp. mimeo.

Forced Labour: Reports of the Ad Hoc Committee on
Forced Labour. Communication dated 1 March 1954
from the Permanent Delegation of the Polish People's
Republic to the Secretary-General. E/2431/Add.7,
March 26, 1954. 1 p. mimeo.

Forced Labour: Reports of the Ad Hoc Committee on
Forced Labour. Observations of Venezuela on a
communication of the Ad Hoc Committee on Forced
Labour. E/2431/Add.8, March 29, 1954. 11 pp.
mimeo.

Statement by the Secretary-General to the Economic and
Social Council on 30 March 1954. E/L.578, March 30,
1954. 4 pp. mimeo.

United Nations Conference on Customs Formalities for the
Temporary Importation of Private Road Motor Ve-
hicle.s and for Tourism : Provisions of the Draft Inter-
national Customs Convention on Touring, Prepared by
the Economic Commission for Europe, Which Are
Relevant to Customs Formalities for the Temporary
Importation of Private Road Motor Vehicles. Note
by the Secretary-General. E/Conf.16/4, March 30,
1954. 23 pp. mimeo.

Current U.N. Documents:
A Selected Bibliography

Economic and Social Council

United Nations Conference on Customs Formalities for the
Temporary Importation of Private Road Motor Ve-
hiele.s and for Tourism : Provisions of the Draft Inter-
national Customs Convention on Touring, Prepared by
the Economic Commission for Europe and Relevant
to Customs Formalities for Tourism ( i. e. the Personal
Effects of Tourists Travelling by Any Means of Trans-
port). Note by the Secretary-General. E/Conf.16/5,
March 30, 1954. 0 pp. mimeo.

Review of International Commodity Problems, 1953.
Note by the Secretary-General. E/2515, April 2, 1954.
24 pp. mimeo.

Slavery. ( Supplementary report submitted by the
Secretary-General.) E/2548/Add.l, March 15, 1954.
3 pp. mimeo.

' Printed materials may be secured in the United States
from the International Documents Service, Columbia
University I'ress, 2960 Broadway, New York 27, N. Y.
Other materials I mimeograplied or processed documents)
may be consulted at certain designated liliraries in the
United States.

Trusteeship Council

Conditions in the Trust Territory of Togoland Under
French Administration. Summary of the observa-
tions made by individual members of the Council
during the general discussion, and of the comments of
the representative and special representative of the
Administering Authority. T/L.439, March 16, 1954.
31 pp. mimeo.

Conditions in the Trust Territory of the Cameroons Under
French Administration. Summary of the observa-
tions made by individual members of the Council
during the general discussion, and of the comments of
the representative and special representative of the
Administering Authority. T/L.445, March IS, 1954.
42 pp. mimeo.

Conditions in the Trust Territory of Tanganyika. Work-
ing paper prepared by the Secretariat. Addendum.
T/L.419/Add.l. 5 pp. mimeo.

Conditions in the Trust Territory of Ruanda-Urundi.
Working paper prepared by the Secretariat. T/L.420/
Add.l, March 19, 19,54. 5 pp. mimeo.

Conditions in the Trust Territory of Togoland Under Brit-
ish Administration. Summary of the observations
made by individual members of the Council during the
general discussion, and of the comments of the repre-
sentative and special representative of the Admin-
istering Authority. T/L.4!J0, March 19, 1954. 30 pp.
mimeo.

Conditions in the Trust Territory of Tanganyika. Report
of the Drafting Committee. T/L.451, March 19, 1954.
15 pp. mimeo.

May 3, 7954

679

International Organizations and Conferences

Calendar of Meetings ^

Adjourned during April 1954

IcAO Council: 21st Session Montreal Feb. 2- Apr. 7

U.N. Human Rights Commission: lOtli Session New York. Feb. 22- Apr. 16

IcAO Communications Division: 5th Session Montreal Mar. 9- Apr. 9

UNESCO Executive Board: 37th Session Paris Mar. 10- Apr. 9

Panama International Commercial Exposition Colon Mar. 20-Apr. 4

U.N. Commission on Status of Women: 8th Session New York Mar. 22- Apr. 9

7th International Film Festival Cannes Mar. 25- Apr. 9

Fag Technical Meeting on Forest Grazing Rome Mar. 29-Apr. 5

U.N. Economic and Social Council (Ecosoc): 17th Session . . . New York Mar. 30-Apr. 23

2d Meeting of the Provisional Committee of the Pan American Washington Apr. 5-9

Highway Congress.

U.N. Statistical Commission: 8th Session Geneva Apr. 5-24

Caribbean Trade Promotion Conference Port of Spain Apr. 6-12

Joint Ilo/Who Committee on the Hygiene of Seafarers: 2d Session . Geneva Apr. 9-13

2d Congress of the International Commission on Irrigation and Algiers Apr. 12-17

Drainage.

International Fair of Milan Milan Apr. 12-28

IcEM Subcommittee on Draft Rules and Regulations Geneva Apr. 20-22

4th International Congress of Prehistoric and Protohistoric Sciences Madrid Apr. 21-27

Paso Executive Committee: 22d Meeting Washington Apr. 22-30

Nato Ministerial Meeting of the North Atlantic Council Paris Apr. 23

IcEM Finance Subcommittee: 5th Session Geneva Apr. 23-24

IcEM 7th Session of the Intergovernmental Committee Geneva Apr. 26-30

International Tin Study Group: Meeting of Management Com- Brussels. Apr. 26 (1 day)

mittee.

In session as of April 30, 1954

3d International Exhibition of Drawings and Engravinga .... Lugano Apr. 15-

U.N. EcE 2d East-West Trade Consultation Geneva Apr. 20-

Icao Conference on Coordination of European Air Transport. . . Strasbourg Apr. 21-

Unesco Intergovernmental Conference on Protection of Cultural The Hague Apr. 21-

Property in the Event of Armed Conflict.

Lyon International Fair Lyon Apr. 23-

Geneva Conference Geneva Apr. 26-

International Conference on Oil Pollution of the Sea and Coasts. . London Apr. 26-

Scheduled May 1 - July 31, 1954

International Exhibition of Industry Tehran May 1-

International Rubber Study Group: 11th Meeting Colombo May 3-

Upu Meeting of the Executive and Liaison Committee Lucerne May 3-

U.N. EcAFE Inland Waterways Subcommittee: 2d Session .... Saigon May 3-

Who Seventh Assembly Geneva May 4-

International Sugar Council: 2d Session London May 5-

American International Institute for the Protection of Childhood: Montevideo May 10-

Annual Meeting of Directing Council.

Ilo Advisory Committee on Salaried Employees and Professional Geneva May 10-

Workers: 3d Session.

IcAO Special Middle East Regional Communications Meeting . . Island of Rhodes (Greece). . May 11-

U.N. Conference on Customs Formalities for Temporary Importa- New York May 11-

tion of Private Vehicles and for Tourism.

' Prepared in the Division of International Conferences Apr. 22, 1954. Asterisks indicate tentative dates and locations.
Following is a list of abbreviations: Icao, International Civil Aviation Organization; U. N., United Nations; Unesco,
United Nations Educational, Scientific and Cultural Organization; Fao, Food and Agriculture Organization; Ecosoc,
Economic and Social Council; Ilo, International Labor Organization; Who, World Health Organization: Icen, Inter-
governmental Committee for European Migration; Paso, Pan American Sanitary Organization; Nato, North Atlantic
Treaty Organization; Ece, Economic Commission for Europe; Upu, Universal Postal Union; Ecafe, Economic Commission
for Asia and the Far East; Cigre, Conference Internationale Des Grands Reseaux Electriques; Itu, International Tele-
communication Union; Wmo, World Meteorological Organization; and Ccit, International Telegraph Consultative -Com-
mittee (Comite consultatif Internationale telegraphique).

680 Department of State Bulletin

Calendar of Meetings — Continued

Scheduled May 1-July 31, 1954 — Continued

Large Electric High Tension Systems (Cigre), 15th International Paris May 12-

Conference on.

International Fair of Navigation Naples

International North Pacific Fisheries Commission: Meeting of Tokyo

Committee on Biology and Research.

Fag Mechanical Wood Technology: 3d Conference • . . Paris

U.N. EcAFE Regional Conference on Water Resource Develop- Tokyo

ment.

Caribbean Commission: 18th Meeting Belize (British Honduras).

Ilo Governing Body: 125th Session Geneva

Itu Administrative Council: 9th Session Geneva

Who Executive Board: 14th Meeting Geneva

11th International Ornithological Congress Basel

Fao Technical Advisory Committee on Desert Locust Control . . Rome

IcAO Assembly: 8th Session Montreal

14th International Congress of Actuaries Madrid

Ilo Annual Conference: 37th Session Geneva

U.N. Trusteeship Council: 14th Session New York

Fao Committee on Commodity Problems: 23d Session Rome

U.N. International Law Commission: 6th Session Paris

International Cotton Advisory Committee: 13th Plenary Meeting . Sao Paulo

UNESCO Intergovernmental Conference of E.xperts on Cultural Paris

Relations and Conventions.

Fifth Inter-American Travel Congress Panama City

International Exposition in Bogotd Bogotd

International Commission for Northwest Atlantic Fisheries: 4th Halifax

Annual Meeting.

International Meeting of Tonnage Measurement Experts .... Paris

U.N. EcE European Regional Conference of Statisticians .... Geneva

U.N. Permanent Central Opium Board & Narcotic Drugs Super- Geneva

visory Body: 11th Joint Session.

IcAO Meteorology Division: 4th Session Montreal

Wmo Aeronautical Meteorology Commission: 1st Session .... Montreal

Civil Aviation Meet (Centenary of Sao Paulo) Sao Paulo

International Wheat Council: 15th Session London

Ilo Governing Body: 126th Session Geneva

UNESCO Seminar on Educational and Cultural Television Program London

Production.

U.N. Ecosoc 18th Session of the Council Geneva

Itu International Telegraph Consultative Committee (Ccit) : Geneva

Study Group XL

Art Biennale, XXVIIth (International Art Exhibition) Venice

International Exposition and Trade Fair SSo Paulo

8th International Botanical Congress Paris

1 7th International Conference on Public Education (jointly with Geneva

Unesco).

8th General Assembly of the International Union of Pure and London

Applied Physics.

6th Pan American Highway Congress Caracas

2d Radio Isotopes Conference Oxford

Internationa! Whaling Commission: 6th Meeting Tokyo

3d General Assembly of the International Congress of Crystal- Paris

lography.

4th Inter-American Congress of Sanitary Engineering Sao Paulo

World Power Conference: Sectional Meeting Rio de Janeiro

4th General Assembly of the International Union of Theoretical Brussels

and Applied Mechanics.

International Union for the Protection of Nature: 4th General Copenhagen July 28-

Assembly.

May 15-

May 17-

May 17-

May 17-

May 19-

Mav 24-

May 1-

May 27-

May 29-

May-

June 1-

June 2-

June 2-

June 2-

June 3-

June 3-

June 7-

June 8-

June 10-

June 13-

June 14-

June 14-

June 14-

June 14-

June 15-

June 15-

June 16-

June 16-

June 25-

June 27-

June 29-

June 30-

June-Oct

July 1-

July 2-

July 5-

July 6-

July 11-

Julv 19-

July 19-

July 21-

Julv 25-

Julv 25-

July 27-

May 3, 1954 681

The Quest for Truth Through Freedom of Information

Statevients hy Preston Hotchkis . n

U.S. Representative in the Economic and Social Counczl '

IMPORTANCE OF A FREE PRESS
TO POLITICAL LIBERTY

tJ.S./U.N. press release 1898 dated April 9

Three hundred and ten years ago, John Milton
wrote the "Aeropagitica." In defending freedom
of information in his native land, Milton said :

And thouch all the winds of doctrine were let loose
to play upon the earth, so truth be in the field, ^-e do
injuriously by licensing and prohibiting to misdoubt lier
strength Let her and falseliood grapple; who ever knew
truth put to the worse, in a free and open encounter.

This guiding principle has worn well with time;
it remains a bright lodestar for our discussion

HprG

For freedom of information is essential to po-
litical liberty— no other freedom is secure when
men and women cannot freely convey their
thoughts to one another. The very survival ot
democratic government depends upon the man m
the street having access to all the information he
needs to exercise sound judgment on public issues.

The achievement of this goal has never been
easy. But the historic evolution of a free press
has taught us two important lessons.

First, that the growth of free information media
starts at the grassroots. People must value free
expression highly ; they must have a real appetite
for it; and they must be willing to work hard for
it. No one can superimpose a free press on a
populace which doesn't want it; no one can forever
deny it to a populace which wants it badly enough.

Second, that the major obstacles to such a grass-
roots growth come from unenlightened govern-
ments. The development of a free press is a story
of hard- won triumphs over such repressive gov-
ernmental measures as licensing, censorship, sup-
pression of news and coercion of editors. Those
who hold power are often tempted to restrain free
criticism, if only because they believe that they
are wiser than "their critics. Governmental in-
tervention is inevitably detrimental to freedom of
information.

'Made in the Economic and Social Council on Apr. 9
and 13.

682

So, the lesson of history is that paternalism is
incompatible with freedom of information. We
must choose between the free approach, in which
people strive for what they get, and a paternal-
istic one, in which everything is furnished by a
collective agency. The Soviet system is a classic
example of the latter, for the government pro-
vides all the material means for the expression
of ideas— printing shops, paper, etc.— but only
at the cost of determining the ideas and control-
ling the expression.

Those who defend freedom of information, and
who caution their friends against treading the
path which leads toward totalitarianism, need
never feel bashful about speaking up. They are
enlisted with Milton in the right cause.

Practical Problems Involved

In that si>irit. Mr. President, I shall examine
the practical problems before us. These problems
are outlined in three reports— the outstanding
"Eei)ort on Freedom of Information" " prepared
by the rapporteur, Mr. Salvador P. Lopez; and
the two reports prepared by the Secretary-General
in cooperation with the specialized agencies on
the "Encouragement and Development of Inde-
pendent Domestic Information Enterprises'"
and "Production and Distribution of Newsprint
and Printing Paper." - These reports should con-
tribute greatlv to our deliberations. Indeed, they
project so many suggestions that our real prob-
lem is to establish priorities among available
tasks.

The practical proposals made in these reports
fall into three main problem areas: (1) govern-
ment restrictions; (2) economic and technical
barriers to the flow of information; and (3) pro-
fessional standards and the rights and responsi-
bilities of information media.

Go rernmen t Restrictions. The most important
step that could be taken toward greater freedom

" U.N. doe. E/2426 and Adds. 1 and 2.
= U.N. doc. E/2534.
* U.N. doc. E/2543.

Department of Sfafe Bo//e/»n

of information is the elimination of government
restrictions. There is far too much use, some-
times arbitrary', of such restrictions as censorsliip,
su})pression and coercion of information media,
and repressive reguhitions. A free press camiot
breathe in a climate of oppression.

The most complete controls exist in the Soviet
world, in keeping with its totalitarian nature.
r>nt there are many countries which do accept the
]irinciple of freedom of information and yet
stille it in practice, from time to time, through
crnsorship and other suppressive measures. The
extent of such practices — as pointed out in the
memorandum of the International Press Insti-
tute and in the xVssociated Press surveys of cen-
sorship— should be priority subjects for further
work on freedom of information.

At this point I want to say a few words about
the criticism to which the Associated Press and the
International Press Institute were subjected by
several speakers last Friday. These two insti-
tutions were accused of falsely reporting on the
existence of various forms of censorship in cer-
tain countries, and the rapporteur of the Council
was upbraided for making use of their reports.

I ask, Mr. President, what other reports could
the rapporteur have used to point up the existence
of widespread censorship practices? Govern-
ments, particularly those which have frequent
recourse to censorship, are not in the habit of
advertising their use of these practices. Even in
our own organization, the U.N. and in Unesco,
governments have only too frequently preferred
to indulge in pious generalities about the evils
of censorship rather than to encourage or permit
factual studies of concrete censorship practices
in scores of countries which profess to believe in
freedom of the press.

Mr. President, I submit that our rapporteur de-
serves high praise rather than criticism for hav-
ing had the courage to direct the spotlight of
public opinion on the existence of forms of censor-
ship so frequent, so widespread, so all compre-
hensive as to be a most serious threat to freedom
of information. And we owe a debt of gratitude
also to the newsmen in the Associated Press and
the International Press Institute who in their
struggle for freedom of information dare to incur
the disfavor of governments by publishing what
Mr. Lopez himself calls "factual reports on con-
ditions which can be undertaken effectively by the
profession."

It seems to me that the time has come when the
Council itself must take steps to encourage the
elimination of unwarranted government restric-
tions of the free flow of news. Fact finding is a
first step toward such elimination of restrictions.
Rather than criticize the efforts of those who are
trying to keep us informed about such i-estrictions
we should support, as a matter of highest priority,
the proposal of Mr. Lopez of two worldwide sur-

veys to be undertaken by the rapporteur next year.
The first is a worldwide survey of current internal
censorship practices together with recommenda-
tions, where practicable, for remedial action. The
second is a similar survey regarding censorship of
outgoing news dispatches. I am struck by the
fact that these two proposals are omitted in the
long list of resolutions submitted by the French
delegation. I do hope that this omission is un-
intentional and that the Council will act on these
proposals for worldwide surveys of censorship as
two of the most constructive and realistic pro-
posals of the Lopez report.

The United States, which proposed the appoint-
ment of a rapporteur at the 14th Session of the
Council for an experimental period of 1 year, con-
siders that Mr. Lopez* work has amply justified
this function. Therefore, we think it would be
useful to appoint a rapporteur for another year
to carry out the most urgent tasks suggested in
the report — including the two I have mentioned
above. We would be happy to have Mr. Lopez
continue to serve in this capacity.

Loosening the fetters of government restrictions
will contribute to greater freedom of information.
But tightening these fetters will have the opposite
effect. And this is precisely what I fear will hap-
pen if we indulge in further attempts to frame
generalized conventions on freedom of informa-
tion. No matter how altruistic our intentions,
experience shows that we would end up with texts
which would be used by some governments as a
pretext for sanctioning or further restricting free-
dom of information. The convention approach
seems most unwise in light of the experience of
the past few years on the Draft Convention on
Freedom of Information, which might better be
called Eestrictions on Information. Under pres-
ent world conditions, attempts to formulate inter-
national legal commitments are more likely to
hmder rather than advance the cause of freedom
of information. With our limited facilities and
resources we should concentrate on the jobs we can
do, instead of dissipating our efforts on jobs we
cannot do.

Barriers to Freedom of Information

Mr. President, the second problem area — eco-
nomic and technical barriers to the flow of infor-
mation— offers real promise of useful work. Here
we face such problems as the production and dis-
tribution of newsprint, press and telecommunica-
tions facilities, rates and priorities, tariff and
trade practices, and, perhaps most important, lack
of local information media.

It is hard for us, here in the Council, to have
a real feeling about some of these problems. We
have freedom to speak. We have resjjonsible
journalists covering our debates. We can step
into the Delegates Lounge and read newspapers
from all over the world, or can obtain the latest

May 3, J 954

683

world news by teletype or radio at any moment.
But at least 28 nations do not have teletype news
services of any kind or have them on such a re-
stricted basis that news cannot even move between
the main population centers. Fifty-four nations
and territories do not even receive the services
of a world news gathering agency. Millions of
people see a newspaper or hear a radio broadcast
only at the rarest of intervals. This is a fertile
field for realistically conceived and administered
technical assistance.

Both the Secretary-General and the rapporteur
stress the significant possibilities of applymg the
concept of technical assistance to freedom of in-
formation. They stress the development of inde-
pendent domestic information enterprises, and the
training and exchange of personnel in the infor-
mation media.

Some parts of such a program would be directly
related to economic development, and accordingly
would qualify with the Expanded Program of
Technical Assistance. Other parts would be in-
cluded in the regular programs of the United
Nations and the specialized agencies.

The Secretary-General points out in his report
on Independent Information Enterprises that the
United Nations and the specialized agencies have
already extended assistance relating to telecom-
munications, visual media, the manufacture of
paper pulp, paper and newsprint, modernization
of printing techniques, and training of printers.
This demonstrates that the United Nations already
has the capability and experience to deal with the
technical problems involved.

The most promising new suggestion is that this
technical assistance now be extended to include
the development of independent domestic infor-
mation enterprises. The most important word in
this idea is "independent." We will not accom-
plish our goals if United Nations technical assist-
ance were to result in politically or governmentally
controlled and guided enterprises. Here again,
the work must be done from the grassroots up —
the real problem is to promote the development of
local newspapers and radio stations which are ca-
pable of standing on their own feet and are
independent of governmental controls.

We should also keep our eyes clearly on the
most important task — that of getting information
to the people at the local level. This means more
local media. It is premature for us to extend our
limited resources to include the development of
news agencies, desirable as that may be. Wlien
there are enough newspapei-s or radio stations in
any particular country or area, they themselves
will create the demand for news agency services.
The Secretary-General wisely recognizes this fact
by pointing out :

The possibility of setting up an indei)endent news agency
depends entirely on its having a sufficient clientele to mal^e
its operations viable. It has been found that attempts to
dispense with the sound financial bacliing provided by a
sufficient number of clients belonging to the independent

684

information media field (i. e., by subsidies or other methods
of financing from governmental or other sources) may
tend to discredit the agency's services in the eyes of a
number of its potential clients. Hence, it may be said that
attempts to create a news agency can be encouraged only
if there already exist within the country sufficient poten-
tial clients willing to subscribe to its services.

Another aspect of technical assistance which
could be quite productive is the fellowship pro-
gram. The Secretary-General has suggested an
increase of fellowships to enable the staif of
domestic information enterprises of under-
developed countries to serve as trainees in countries
with more highly developed information enter-
prises. The rapporteur has put forward virtually
the same proposal. This seems a most useful pro-
gram. The United States has been encouraging
this type of exchange for some time — in fact, 351
leaders of foreign information media visited the
United States as guests of the United States Gov-
ernment during 1952.

Certain other suggestions have been put forward
for action by the specialized agencies or for meas-
ures which can be taken directly by governments
to assist in overcoming technical barriers to the
flow of knowledge and information. Many of
these deserve the support of this Council, but I
shall leave our detailed views on these questions
for elaboration in the Social Committee.

Professional Standards and Rights and Responsibili-
ties of Information Media

Mr. President, there are also possibilities for
making progress in the area of professional stand-
ards and of the rights and responsibilities of in-
formation media. However, we must be particu-
larly careful to avoid the use of standards and
responsibilities as a mask to curb the free flow of
information. At its last session, the General As-
sembly adopted a resolution requesting the Secre-
tary-General to continue his consultations with
information media as to whether they would be
prepared to meet to discuss a code of ethics.^ The
United States, and many other delegations, stressed
at that time that journalists would respect only a
code drawn up without governmental interference
by representatives of the profession. I believe
firmly we must continue to adhere to that principle.

The rapporteur has suggested the possibility of
enlisting the cooperation of information media in
the cause of promoting friendly relations among
nations, with particular emphasis on disseminat-
ing wider professional knowledge of the work of
the United Nations, foreign countries and inter-
national affairs. He has suggested that it might be
accomplished through appropriate courses in
schools of journalism, visits of journalists to
foreign countries and to the United Nations, and
interchange of news personnel. My delegation be-
lieves that this might be added to the survey of

• U.N. doe. A/Resolution/156.

Department of State Bulletin

censorship pi-actices and protection of sources of
information of news personnel as priority respon-
sibilities for the rapporteur and the Council in the
coming year. I would like to stress, however, that
our job should be to create better understanding
rather than to train pro-United Nations propa-
gandists. Newsmen camiot be expected to propa-
gandize for any cause, no matter how good it may
be. Their job is to provide information.

There are also a number of general proposals to
encourage better professional training of infor-
jimtion personnel in the Secretary-General's rec-
ommendations. These include encouragement of
the establishment of professional training courses
in underdeveloped countries, the facilitation of
entry into the developed countries of persons de-
siring to improve their professional qualifications,
and the use of experts to assist in the training of
professional workers in underdeveloped countries.
Tliese proposals offer similar possibilities for con-
structive action.

Mr. President, we can use our resources intelli-
licntly and imaginatively to stimulate the grass-
roots development of free information enterprises,
to lift govermnent restrictions against their
growth, and to encourage responsible journalism.
But we must approach these tasks realistically.
The seed of a free press is present everywhere
where people are free to think and to speak. We
cannot create that seed, but we can help nurture its
growth and guard against those who — out of ig-
norance or hostility — would stifle the development
of one of man's most precious freedoms.

Kidnapping of American Journalists

This task requires unceasing vigilance. The
forces of darkness have already enveloped 800
million captive people in the world behind the
Iron and Bamboo Curtains. Their totalitarian
tentacles have even reached out to enfold foreign
correspondents, for these regimes are so patho-
logically suspicious and afraid of honest report-
ing that they equate the quest for news with
espionage. No one can forget the case of William
Oatis who spent more than two years in a Czech
jail because he tried to cover the news. Fortu-
nately, Mr. Oatis is now free and is pursuing liis
profession here at the United Nations — covering
the meetings of tliis Council — where it is not a
crime to ask a delegate questions.

And this was not an isolated case. On March
21, 1953, two other American journalists, Donald
Dixon and Richard Applegate, were seized by a
Chinese Communist gunboat while sailing in a
yacht in international waters from Hong Kong
to Macao. For more than a year these newspaper-
men have been held incommunicado in a Chinese
Communist jail, while the authorities of that re-
gime have ignored completely the repeated in-
quiries and protesfs from my government, and
from relatives, friends, and colleagues of the un-

fortunate journalists and their traveling com-
panions who were seized with them.

Indeed, the Chinese Communists have never
deigned to reply to requests for information on
this brutal kidnapping — this act of piracy on the
high seas. Dixon and Applegate now find them-
selves imprisoned by the Chinese Communists like
30 other American citizens. The only crimes of
these 32 appear to have been that they were Ameri-
can journalists, missionaries, or businessmen or
students. All these Americans have been kept in
Chinese Communist jails, some for 3 or more years,
in complete ignorance of the charges on which they
are held. They have been denied counsel, and they
have even been refused basic personal needs.
Many have been subjected to physical and mental
tortures designed to extract false confessions of
guilt. It is a tragic fact that some Americans pre-
viously jailed by the Chinese Communists are
known to have died as a result of bestial treatment.

It is an evil thing when freedom of information
is suppressed through censorsliip and repressive
regulations. But when this freedom is destroyed
by the physical snatching away and imprisoning
of journalists, then it is a matter deserving of the
greatest condemnation and forthright action.

Mr. President, through this Council I am ap-
pealing to world public opinion in an effort to
prevail upon the Chinese Communist regime to
release from its custody Donald Dixon, Richard
Applegate, and the other Americans held in Chi-
nese Communist jails or otherwise prevented from
leaving Communist China. I am also serving no-
tice that the United States will keep this issue alive
in ajDpropriate organs of the United Nations and
wherever else it may prove helpful. This to the
end that these victims of the foes of truth and
freedom may be liberated and that Milton's
words — "whoever knew truth put to the worse" —
will once again be vindicated.

REFUTATION OF SOVIET STATEMENTS

U.S./U.N press release 1903 dated April 13

Wlien I listened to the remarks of the Soviet
delegate, it reminded me somewhat of the hero
in Stephen Leacock's play who mounted his horse
and rode furiously in all directions.

The Soviet delegate evidenced acute reaction
against the criticism of the rapporteur's report,
and the very violence of the reaction is the best
indication to me that the criticism was well di-
rected. In the United States we welcome criti-
cism, especially honest, constructive criticism, as
that is the way we all learn and progress in my
country. That points up one major difference in
the speeches of the delegates around tliis table on
freedom of information over the last two days.
There has been honest criticism against the dis-
honest criticism that we just heard; real difference

May 3, 1954

685

of opinion against propaganda; sincere opinion
against pure demagoguery ; dignified statement of
position against an endless diatribe and perversion
of the truth.

Now, wliat were some of those perversions of the
truth. First, you heard tlie statement made by the
Soviet delegate that you have to be a millionaire
or a billionaire in 'the United States to own a
newspaper. Well, I don't know what a billionaire
is. I never saw one. That's too stratospheric in
numbers for me. But I come from the little town
of San Marino in California that has a population
of 13,000 people. We have a newspaper there. It
is owned by a resident of San Marino, completely
independent, and we read the newspaper — most all
the residents of San Marino read that newspaper.
He is not a subsidiary of any large organization.
He is the sole proprietor of his own business and
he prints in the paper what he thinks are the best
facts that he can get, not what he thinks the people
would like to read, but tlie facts. It is a small
business which is typical of thousands of small
towns in my country, and it is typical and symboli-
cal also of the way 95 percent of the business in
my country is done — not by large companies but
by small companies or small individual businesses.

The next statement was that the American press
is a monopoly, a trust run by dollar grabbing capi-
talists. I would remind my Soviet colleague once
more that we in the United States have no mo-
nopolies, e.xcept in public utilities that are strictly
regidated by the state or by tlie federal govern-
ment. We do not have monopolies. We have
anti-trust laws which prevent monopolies, whereas
in the Soviet Union they have only monopolies
and the state owns everything, almost even the
souls of the people. In the Soviet Union all in-
formation comes from government dictates.

Now, the next statement was that in the United
States our citizens are spoon-fed news and in-
formation which a few Wall Street bankers want
them to read. I am not going to dignify a state-
ment of that kind with an answer. I would only
say that the delegate from the Soviet Union can
go right out in this building to the newsstand and
for a few nickels he can purchase more different
opinions from the newsstand in this very building
than in the whole of Soviet Russia.

His next statement was that in the United States
all news is dominated by only three wire services,
the Associated Press, the United Press, and the
International News Service. Well, what's wrong
with those services? Do they print facts or do
they print only propaganda dictated by a totali-
tarian regime? In Soviet Russia they have only
one wire service, Tass. I believe the representa-

tive is here. And the representative of Tass is a
government employee, a government agent, al-
lowed into this country on a visa as a representa-
tive of the Soviet Union. And this agency par-
rots only what the Kremlin dictates.

The representative of Soviet Russia mentioned
the evil events foretold by George Orwell in his
book "1984." I would like to advise my distin-
guished colleague from the Soviet Union that be-
fore he quotes that book again he ought to read
it, for that book is a biting satire on the black
abyss into which the Soviet Union would like to
lead all free countries.

The representative of Soviet Russia stated that
some correspondents, foreign correspondents, were
over in Russia. He either stated or implied they
had freedom to travel around, freedom to send
home the news they wanted. He mentioned Mr.
Salisbury of the New York Times. During my
lunch hour I had occasion to check with the New
York Times and they inform me that Mr. Salis-
bury does not have full freedom to report, since
everything that he writes goes through censorship,
the censorship which Mr. Lopez referred to in
his report. He does not have full freedom to
travel since many parts of the Soviet Union are
forbidden areas. If the delegate from the Soviet
Union really believes in full freedom of infor-
mation, I challenge Soviet Russia to lift its cen-
sorship on outgoing dispatches as the first step in
this direction.

Now, Mr. Lopez was attacked in a most violent
manner and it has reminded me and my colleagues
of the equally vicious attack that the Soviet Union
made in the General Assembly against Justice
Berg of Norway and Sir Ramaswami Mudalier of
India. It is obvious that they fear the informa-
tion which these servants of the United Nations
have given us. This is the measure of their be-
lief in the subject that we are talking about.

Finally, the Soviet delegate came to his point
and unmasked his objective. What did he say?
He said abandon the freedom of information path
which the Lopez report talks about and take a
new road, the Soviet road, down the path to Rus-
sian communism, the blackness of the dark ages
where men are chattels and where the government
tells the people what to think and what to say.

Confirmation

The Senate on April 9 confirmed the nomination of
George P. Baljer to be U.S. representative on the Transport
and Oonimunications Commission of tlie Economic and
Social Council of the U.N.

686

Department of State Bulletin

The Search for Means of
Controlh'ng Atomic Energy

Statements iy Henry Cabot Lodge, Jr.
U.S. Representative to the United Nations ^

i Nature of Commission's Tasi<

1 U.S. /U.N. press release 1901 dated April 9

! The Disarmament Commission resimies its work
1 at a moment when the whole world is gripped with
I the knowledge that a new dimension has been
I added to the chmgers of the atomic age.
'' Months before the recent tests at the Pacific
I proving grounds, the President of the United
States spoke to us on December 8 here in the
United Nations about the significance to the world
of what he called these "fearful engines of atomic
might." ^ He offered concrete proposals which ex-
pressed the conscience and the hope of America,
and I believe of all of humanity. He called upon
us to find a way out of the "dark chamber of
horrors" into which the perversion of atomic de-
velopment for warlike purpose seems to be lead-
ing us.

We are interested that the Soviet Union recog-
nizes and declares the peril which threatens it as
well as all of us in the free world. In its recent
note delivered to the United States Government ""
it states :

There cannot be any doubt that the use of atomic and
hydrown weapons in war would cause untold disaster to
peoples, would mean mass annihilation of the world's
population, destruction of large cities — the centers of pres-
ent day industry, culture, and science, including the oldest
renter.s of civilization whicli are the largest capitals of
world states.

This is certainly true.

And now the Prime Minister of India has made
a statement to his Parliament on atomic and hydro-
gen weapons which in accordance with his request
iias been distributed as a Disarmament Commis-
sion document.^ It is clearly entitled to respect-
ful attention. We suggest that this document be
T(>ferred to the subcommittee and be considered
fliere.

We may assume, therefore, that on both sides of
I he line which now divides the world there is a
recognition of mortal danger. We, on our side,
liope tliat this increasing awareness on the Com-
munist side will be accompanied by a determina-
tion matching our own to circumvent the danger
■iiid to unlock for mankind the incalculable good
in atomic energy.

Until we find a solution to this most pressing
problem of our age, neither our world nor the
Communist world can be free of the heavy burdens
of the arms race nor of the shadow of atomic war.

An understanding depends upon good will and
good faith, upon a flexibility of mind and a will-
ingness to explore new methods, and above all
an interest and a desire to get action and results.
Sometimes tliese qualities have been lacking but
in spite of many past disappointments we never
give up hope.

Text of Resolution Adopted by Disarmament
Commission on April 19 ^

U.N. doc. DC/49'
Dated April 19

The Disarmament Conunission,

Noting General Assembly resolution 71.5 (VIII)
and the resolution on disarmament agreed by the
Four Foreign Ministers at Berlin on IS February
1054,

1. Decides, pursuant to General Assembly resolution
71.5 (VIII), to establish a Sub-Committee consisting
of representatives of Canada, BYance, the Union of
Soviet Socialist Republics, the United Kingdom of
Great Britain and Northern Ireland and the United
States of America ;

2. Recommends that the Sub-Committee should hold
its first meeting on 23 April, and should arrange its
own meetings and method of worl£ ;

3. Recommends that the Sub-Comuiittee should pre-
sent a report on the results of its work to the Dis-
armament Commission not later than 15 July.

^ Introduced by the United Kingdom : adopted, as
amended, by a vote of 0-1 (U.S.S.R.)-2 (Lebanon,
China). The Soviet proposal was rejected by a
vote of 1 (U.S.S.R.)-10-1 (Lebanon).

' Made in the Disarmament Commission on Apr. 9, 14,
and 10.
' Bulletin of Dec. 21, 1053, p. 847.
' Delivered on Mar. 31 ; not printed here.
' U.N. doc. DC/44.

We in this country particularly approach this
new round of talks with a deep sense of obliga-
tion. As pioneers and principal custodians of
atomic energy, we have never ceased to encourage
initiative to bring it under control. The plan
offered to the U.N. as far back as 1946 constituted
one such initiative; President Eisenhower's pro-
posals of last December for an international pool
of fissionable material for peaceful purposes is
another. The Secretary of State of the United
States is currently discussing the project with
representatives of the Soviet Union.

We also welcome most earnestly any proposals
for revising the method of dealing with disarma-
ment wliich promises to make discussions more
fruitful. For all these reasons, the United States
Government stands ready to pursue the progres-
sive suggestions made by the past session of the
General Assembl}^ for the establishment of a sub-
conunittee of this commission to "seek in ]>rivat6
an acceptable solution."'^ We are hopeful that
such close and intimate consultation, untram-
meled by publicity and unbvirdened of tiie weight

' Bulletin of Dec. 14, 1953, p. 838.

May 3, 1954

687

of propaganda, may produce more results than the
formal debates which we have previously held.

Such a subcommittee should of course consist
of France, the Soviet Union, the United Kingdom,
and the United States, and we believe it should
also include Canada, which occupies a unique
place, both for reasons technically connected with
disarmament and also because of her gifts of
international moral leadership.

Mr. President, this is not a time for oratory but
for hard practical work. We may doubt whether
this committee, no matter how hard and how
sincerely it works, will be able within a short
time to solve all the vast problems of control of
atomic energy. We may well be content if we
make some tangible progress. Let us be heartened
by the thought that agreements on specific points
can in turn lead to greater agreements and then
to genuine positive accomplishments. Would
that there were a simple formula which, even if
it could not give us full security, would at least
materially reduce tlie total danger which con-
fronts the world today. However, there is no
such simple formula. Tliere is no magic wand
which we can wave and bring the millennium over-
night. There is nothing to substitute for hard
painstaking woi'k animated by a sincere desire
to get results but not motivated by a race for the
world's headlines.

In that hopeful spirit, Mr. President, let us
begin.

Participation of Communist China

U.S. /D.N. press release in04 dated April 14

Let me make two brief observations concerning
the proposal of the Soviet representative for par-
ticipation of the Chinese Communists in the sub-
committee.^

First, the Soviet proposal to include the Chinese
Communist regime is both fallacious and unwise.
What we are discussing here is the composition of
a subsidiary body of this commission, a subcom-
mittee, if you i^lease, which in turn is a subsidiary
body reporting to the General Assembly and to
the Security Council. In the General Assembly
and in the Security Council representatives of the
Government of the Republic of China sit for
China, and they are the only representatives who
can legally represent China in the Disarmament
Commission or any subsidiary bodies it may
establish.

Secondly, the United States opposes the inclu-
sion of Communist China in the subcommittee for
substantially the same reasons which cause us to
oppose representation of Communist China in the
United Nations. And I need not take the time of
this body this afternoon to give all those reasons
because you are thoroughly familiar with them.

° U.N. doc. DC/48 dated Apr. 14. Tbe Soviet draft also
proposed India and Czechoslovakia as participants.

The plain truth is that commonsense tells us that
the nations which are included in the resolution of
the United Kingdom ' are numerous enough and
responsible enough and involved enough to reach
an agreement on disarmament.

U.S. Views on Subcommittee

D.S./U.N. press release 1007 dated April 19

Sometimes I get the impression that the repre-
sentative of the Soviet Union gets so carried away
or fascinated by the rumble of his own voice that
he says things which on sober reflection later he
must regret. I am sure that he feels sorry now
that he implied, for example, that India was a
satellite because, of course, it is a well-known fact
that India is an independent nation which stays
in the British Commonwealth solely because it
^^ants to stay in the British Commonwealth. His
inference that Canada was a satellite of the United
States, or that the United States was a satellite of
Canada — I forget which way he had it — is, of
course, equally absurd.

The Soviet representative seems to see satellites
everywhere, probably because his Government has
put so much time and energy into setting up a
monolithic satellite edifice whose structure, I may
add, is as brittle as its surface is hard. He cannot
understand the fact of people in this world doing
things because they believe in them. He cannot
understand tlie basic essential strength of free
peoples in which the rights and the views of every-
one, be they small or large, weak or strong, are
respected.

Now, Mr. President, for reasons which I have
made clear many times, the United States is op-
posed to the inclusion of the Chinese Communist
regime on the subcommittee. It is a regime which
is manifestly unfit to take part in this work. If
it is put to a vote, I shall vote against including
them.

Similarly, the United States is opposed to the
inclusion of Czechoslovakia and I shall vote
against their inclusion. The whole world knows
that Czechoslovakia has neither a voice nor a vote
which it can call its own.

The Government of India in its communication
of April 8 regarding the hydrogen bomb * said,
"The Government of India are fully aware that;
any effective consideration and solution of these
problems can be reached only by the powers prin-
cipally concerned." I stress the words "only by
the powers principally concerned." The repre-
sentative of the Soviet Union has produced no
evidence to indicate that India wants to be in the
subcommittee. There is every indication that the
Government of India was not consulted on the
Soviet proposal and does not, in fact, desire to

' U.N. doc. DC/47 dated Apr. 12. This draft named the
U. S., U. K., U. S. S. R., France, and Canada as members of
the .subcommittee.

' U.N. doc. DC/44.

688

Deparfment of State Bulletin

serve. If it is put to a vote, I shall abstain on the
inclusion of India on the subcommittee.

Let me say, however, that the United States is
very much in favor of hearing a full exposition of
the views of the Government of India. We would,
therefore, favor an invitation to India to send a
representative to the subcommittee at an early date
to express her views, and in fact the United States
intends to propose such an invitation to the sub-
committee at the proper time.

Mr. President, the Soviet representative argued
that the subcommittee would be so lopsided that
the Soviet Union would be outvoted. He is in
error. There is no outvoting and there will l>e
no outvoting in tlie subcommittee because there
isn't going to be any voting. Nations will be
bound only by their own vote. We believe that
an "acceptable solution," which is what the Gen-
eral Assembly resolution calls for, means a solu-
tion acceptable to all members of the subcommittee,
to the Soviet Union as well as to all other members.
When the subcommittee is set up we expect to take
the position that it should not vote at all, just as
the Disarmament Commission never voted except
on strictly procedural matters. So there is nothing
to worry about there.

Mr. President, let us be candid with each other
and with the public. The pending proposal of
the United Kingdom is the world's best hope for
disarmament. Those who favor disarmament will
support it. Those who vote against it will inevita-
bly Ibe regarded as being opposed to disarmament.
Now, those are hard words, but that is the hard
fact. All else is propaganda, legalism, technicali-
ties, and surplusage. A thinly veiled threat to
walk out which is what the representative of the
Soviet Union has made, is also a thinly veiled
threat to torpedo the peace. The choice before us
is simple. The stakes are immense. Let us act
like men and hesitate no longer and thus we can
lead the world to peace.

Armistice Agreement Violations

Folloiving is the text of a letter dated April 15
from Maj. Gen. J. K. Lacey., Senior U.S. Repre-
sentative on the Mil/farj/ Armistice Commission in
Korea, to the Neutral Nations Supervisory Com-
mission: ^

1. For investigation of violations of the Ar-
mistice Agreement by the KPA/CPV [Korean
People's Army/Chinese People's Volunteers] side,
during the period 29 November 1953 to 9 February
1954, the following facts are presented for your
immediate consideration.

' For information concerning the composition niul fiine-
tions of the.se commissions as (iescril)ed in the Korean
Armistice Agreement, see Bulletin of Aug. \i, VJi'i.i, pp.
134-137.

2. On 29 November 1953, after the KPA/CPV
in a meeting of the MAC [Military Armistice
Commission] refused to submit a joint letter to
the NNSC [Neutral Nations Supervisory Commis-
sion], the UNC [United Nations Command] uni-
laterally requested the NNSC to investigate the
case of three soldiers apprehended by the UNC on
19 November 1953 in the Joint Security Area.
These three soldiers were identified beyond ques-
tion to be former soldiers of the ROKA [Republic
of Korea Army]. The place and date of their
capture by the KPA/CPV was firmly established.
Although ample evidence was available to verify
the fact that these persons were impressed into
the KPA/CPV military units, and were retained
after 24 September 1953j a clear violation of para-
graph 51 of the Armistice Agreement by the
KPA/CPV, the Czech and Polish membere of the
NNSC refused to participate in any proceedings
for the consideration of this critical matter as a
violation of the Armistice Agreement.

3. On 18 December 1953, after the KPA/CPV
in another meeting of the MAC again i-efused to
submit a joint letter to the NNSC, the UNC uni-
laterally, and for the second time, requested the
NNSC to investigate the case of two individuals
apprehended by the UNC, South of the Southern
boundary of the Demilitarized Zone on 10 Decem-
ber 1953. These individuals, as in the case of the
tln-ee ROKA persons previously cited, were also
identified beyond question to be former soldiers of
the ROKA who had been impressed into the
KPA/CPV militaiy units. Their retention after
24 September 1953 constituted a second clear vio-
lation of paragraph 51 of the Armistice Agreement
by the KPA/CPV. For the second time, the
NNSC failed to take any action on a unilateral
request from the Senior IMember of a side as au-
thorized in paragraphs 28 and 42F of the Ar-
mistice Agreement. For the second time, the Czech
and Polish members of the NNSC refused to par-
ticipate in the performance of their solemn obliga-
tion under the terms of the Armistice Agreement.

4. On 18 January 1954, and again on 26 Jan-
uary 1954, the UNC submitted separate unilateral
requests to the NNSC to investigate specific mili-
tary units of the several ROKA persons, who had
been impressed into the military service of the
KPA/CPV, in order to ascertain whether these
and other individuals had also been forcibly de-
tained in the territory under the military control
of the KPA/CPV. For the third and fourth time,
respectively, the Czech and Polish members of the
NNSC again refused to cooperate in the investi-
gation of KPA/CPV violations of the Armistice
Agreement. The arguments presented by the mem-
bers gave every indication of being mere excuses
to prevent the NNSC from confirming KPA/CPV
violations of the Armistice Agreement in the tei"-
ritory under the military control of the KPA and
the CPV. Particularly significant, however, was
the fact that the responses of the Polish and Czech

May 3, J 954

689

members as evidenced by an examination of the
minutes of the 89th and 96th meetings of the
NNSC, conformed to and appeared to be unduly
influenced by the contents of two prior letters of
19 January and 27 January, issued by the Senior
Member of the KPA and CPV, MAC, as his reply
to the UNC unilateral requests submitted to the
NNSC on IS January and 26 January, respec-
tively. Substantiation of such influence is found
in the following remark made by the Polish mem-
ber and confirmed by the Czech member, at the
96th meeting of the NNSC :

The Polish Delegation also deems it its duty to declare
that for the above stated reasons it will not agree — either
now or in the future — to a request of one of the sides to
conduct any investigation in connection with the issue of
retention of the captured personnel of the other side —
until settlement or understanding is reached on the matter
by the two opposing sides or by the forthcoming political
conference.

Such a decision by the Czech and Polish members
is considered by tlie UNC to render the NNSC
ineffective for future investigation of any Armi-
stice violations relating to captured ROKA per-
sonnel impressed into KPA and CPV military
units.

5. Finally, on 9 February, 1954, the UNC uni-
laterally requested the NNSC to investigate the
illegal introduction of combat material into the
territory under the military control of the KPA
and the CPV, in violation of the Armistice Agree-
ment. Names of places and exact locations were
included in this request of the UNC. Before the
NNSC had officially announced its decision re-
garding the UNC request, the Senior Member of
the KPA and CPV, MAC, addressed a letter to
the Senior Member of the UNC, MAC, denying
all the facts presented. Concurrently he for-
warded an almost identical letter to the NNSC.
The influence that this letter had on the proceed-
mgs of the NNSC cannot be discounted.

6. In attempting to veil these KPA and CPV
violations, the Senior Member of the KPxV and
CPV, MAC, charged the UNC with violations of
the Armistice Agreement, with no foundation in
fact. In addition to labeling the UNC charges
slanderous fabrication, the Senior Member of the
KPA and CPV, MAC, attempted to offset the
UNC requests for investigation of violations by
submitting unfounded charges against the UNC.
In a letter dated 23 Feb. 1954, the NNSC indicated
its inability to carry out its pledged obligations
with regard to the UNC requests of 9 February
1954. This letter was received on 19 March 1954.
This was the fifth time that the Czech and Polish
members of the NNSC refused to participate in
the performance of their duties as members of the
NNSC, in accordance with the provisions of the
Armistice Agreement.

7. Reliable information available to the UNC
shows that the KPA and CPV have introduced
operating combat aircraft into the territory under

the military control of the KPA and the CPV, and
are introducing combat equipment in such a man-
ner as to by-pass and evade the NNITs [Neutral
Nations Inspection Teams] at the ports of entry
in the territory under the military control of the
KPA and the CPV, all of which acts are deliberate
violations of the Armistice Agreement. Although
the Senior Member of the UNC, MAC, has re-
quested that investigation of these violations be
accomplished bv the NNSC, the Senior Member of
the KPA and CPV, MAC, has stated that no such
inspection could ever be permitted since the KPA
and CPV have not violated the agreement. The
Senior Member of the KPA and CPV, MAC, as
the representative of his commanders, has clearly
violated that portion of para 17 of the Armistice
Agreement which states:

The Commanders of the opposing sides shall establish
within their respective commands all measures and pro-
cedures necessary to insure complete compliance with all
of the provisions hereof by all elements of their commands.
They shall actively cooperate with one another and with
the Military Armistice Commission and the Neutral Na-
tions Supervisory Commission in requiring observance of
both the letter and the spirit of all of the provisions of
this Armistice Agreement.

8. The UNC has made every effort to facilitate
the operations of the NNSC in the territory under
the military control of the UNC and has in good
faith complied with the letter and spirit of the
Armistice Agreement. The NNITs have been
given maximum freedom to inspect incoming and
otitgoing equipment according to the agreement.
The NNITs have been given access to documents
listing combat materiel and military personnel in-
troduced into and evacuated from the territory
under the military control of the UNC. With the
aid of these documents they have been able to
accomplish their supervisory duties quickly and
efficiently. At airfields the teams received infor-
mation on all arrivals and departures of aircraft
including approximate flight appointment times,
type of aircraft, and flight numbers. The teams
have been allowed to board cargo aircraft to ac-
complish their inspections and inspections have
been carried out daily. The UNC has always will-
ingly and freely complied with requests of the
NNITs for additional information. The UNC,
in its desire to carry out both the spirit and letter
of the Armistice Agreement, has allowed the above
mentioned freedom to the NNITs in spite of the
fact that it has been obvious from the first that
the Polish and Czech members of the NNITs have
been utilizing this very freedom for the purpose
of taking advantage of administrative errors and
technical discrepancies to charge the UNC with
deliberate efforts to violate the Armistice Agree-
ment. If the UNC had intended to violate the
Armistice Agreement it would have followed the
system used in the territory under the military
control of the KPA and CPV. In that territory
the NNITs have been so restricted and handi-
capped by the established procedures that they

690

Department of State Bulletin

have been unable to report or investigate any pos-
sible violations of the Armistice. Since the
Czech and Polish members of the NNSC have sub-
scribed to and supported the views of the Senior
Member, KPA and CPV, MAC, before making
proper investigations of violations to the Armi-
stice Agreement, as requested by the Senior Mem-
ber of the UNC, IMAC, it appears clear that the
NNSC has been paralyzed to such a degree that it
cannot carry out its pledged obligations as out-
lined under the terms of the Armistice Agreement.
The acceptance of the KPA and CPV views of the
letters of 19 January, 27 January, and 12 Febru-
ary, respectively, by "the members from Poland and
Czechoslovakia, without consideration of the evi-
dence submitted by the UNC, serves to prevent
other investigations for substantiated charges of
violations of "the Armistice Agreement committed
by the KPA and CPV.

9. It is obvious that the exercise of the full re-
sponsibilities of the NNSC is confined to the area
of the UNC. In the territory under the military
control of the KPA and the CPV, the NNSC has
been unable to conduct investigations as provided
for in the Armistice Agreement. The Czech and
Polish members of the NNSC, and the Senior
Member of the KPA and the CPV, MAC, have
obstructed the work of the NNSC to date, and
their recent statements appear to preclude the
NNSC from ever performing all of its pledged
obligations in the future. In view of the outright
repudiation by the KPA and CPV of this portion
of the Armistice Agreement, and the inability of
the NNSC to carry out the obligations charged to
it by the same agreement, the UNC considers that
its rights as a signatory to the Armistice Agree-
ment have been denied it. There is to date no
indication that the NNSC either can or will fulfill,
in the area under the military control of the KPA
and CPV, the full obligations which its members
undertook by accepting office on the NNSC.
Neither has the NNSC acknowledged the fact that
in prohibiting inspections lawfully requested by
the UNC the KPA and CPV have in effect uni-
laterally abrogated that part of the Armistice
Agreement applicable to the functions of the
NNSC in the territory under the military control
of the KPA and CPV.

J. K. Lacey, Maj. Gen. USAF,
Senior Member, USMAC.

U.S. Delegations to
International Conferences

Protection of Cultural Property
in the Event of Armed Conflict

The Department of State announced on April IC (press
release 200) that the United States will be represented at

P

May 3, J 954

the Intergovernmental Conference on the Protection of
Cultural Property in the Event of Armed Conflict, to be
held at The Hague from April 21 to May 12, 1954, by the
United Nations Educational, Scientific and Cultural Or-
ganization, by the following delegation :

Chairman

Leonard Carmichael, Secretary, Smithsonian Institution.

Vice Chairman

Sumner McKnight Crosby, Associate Professor and
Chairman, Department of History of Art, Yale Uni-
versity, New Haven, Conn.

Advisers

Magdalen G. H. Flexner, Office of Assistant Legal Adviser

for Public Affairs, Department of State.
W. W. Perham, Colonel, U.S.A., Office of Civil Affairs

and Military Government, Department of Defense.

Buddy A. Strozier, Colonel, U.S.A.F., Headquarters,
United States Air Force in Europe, Wiesbaden,
Germany.

This Conference has been called, pursuant to a resolu-
tion adopted at the Seventh Session of the General Con-
ference of UNESCO (Paris, November 12-December 11,
1952), for the purpose of preparing and signing an Inter-
national Convention for the Protection of Cultural Prop-
erty in the Event of Armed Conflict.

Intergovernmental Committee for
European Migration

The Department of State announced on April 20 (press
release 205) that the following delegation will represent
the United States at the seventh session of the Intergov-
ernmental Committee for European Migration which con-
venes at Geneva, Switzerland, on April 26 :

U.S. Representative

W. Hallam Tuck, Member Personnel Task Force for the

Commission on Organization of the Executive Branch

of the Government, Washington, D. C.

Alternate U.S. Representatives

Chauncey W. Reed, House of Representatives
Francis E. Walter, House of Representatives
Dorothy D. Houghton, Assistant Director, Office for Refu-
gees, Migration and Voluntary Assistance, Foreign
Operations Administration

Principal Adviser

George L. Warren, Adviser on Refugees and Displaced
Persons, Department of State

Advisers

Walter M. Besterman, Staff Member, Committee on Ju-
diciary, House of Representatives

Richard R. Brown, Director, Office of Field Coordination,
Escapee Program, Foreign Operations Administration,
Frankfort, Germany

Albert F. Canwell, Spokane, Wash.

William R. Foley, Committee Counsel, Committee on Ju-
diciary, House of Representatives

Dayton H. Frost, Chief, Intergovernmental Refugee Pro-
* gram Division, Foreign Operations Administration

Robert Hubbell. Labor Specialist, United States European
Regional Organization, Foreign Operations Adminis-
tration, Paris, France

During the week immediately preceding the convening
of the seventh session, two subcommittees will hold meet-
ings. The Ad Hoc Subcommittee on Draft Rules and
Regulations will meet on April 20, 21, and 22. The Sub-

691

committee on Finance will hold its fifth session on April
23 and 24.

The purpose of the Intergovernmental Committee is to
facilitate the movement out of Europe of refugees vs'ho
would not othervrise be moved because of the termination
of the International Refugee Organization. The coun-
tries of emiirration are Austria, Germany, Greece, Italy,
and the Netherlands. The members of the Intergovern-
mental Committee are Argentina, Australia, Austria, Bel-
gium, Brazil, Canada, Chile, Costa Rica, Denmark, France,
Federal Republic of Germany, Greece, Israel, Italy, Lux-
embourg, Netherlands, Norvcay, Paraguay, Sweden, Swit-
zerland, United States, and Venezuela.

Pan American Sanitary Organization

The Department of State announced on April 22 (press
relea.se 208) that the United States will be represented
at the twenty-second session of the Executive Committee
of the Pan American Sanitary Organization, begitming in
Washington on April 22, by the following delegation :

Acting United States Representative

Frederick J. Brady, M. D., International Health Repre-
sentative, Division of International Health, Public
Health Service, Department of Health, Education and
Welfare.

Alternate United States Representative

Howard B. Calderwood, Office of United Nations Economic
and Social Affairs, Department of State.

Advisers

Mary B. Trenary, Division of International Administra-
tion, Department of State.

C. L. William.s, M. D., Associate Director, Division of
Health, Welfare and Housing, Institute of Inter-
American Affairs, Foreign Operations Administration.

Simon N. Wilson, Oflice of Regional American Affairs,
Department of State.

The Executive Committee was set up by a directive of
the Twelfth Pan American Sanitary Conference held at
Caracas in January 1947. The U.S. representative to the
Committee, Dr. H. van Zile Hyde, is unable to attend this
session.

The twenty-second meeting will consider such items as

(1) the program and budget of the Paso for 1955; and

(2) the relationship between Paso and nongovernmental
organizations. In addition to the United States, the other
member governments of the Executive Committee are
Argentina, Brazil, Ecuador, Haiti, Mexico, and Panama.

TREATY INFORMATION

Military Assistance Agreement
With Nicaragua

The Departments of State and Defense an-
nounced on April 24 the signing, in Managua, of
a bilateral Military Assistance Agreement between
the United States and Nicaragua.^ Discussions

' For text of the agreement, see Department of State
press release 209 of Apr. 24.

regarding the agreement were begun with Nicara-
guan officials in January of this year and were
followed by recent formal negotiations in
Managua which resulted in the signing of the
agreement on April 23, 1954.

This agreement is consistent with, and conforms
to, inter- American instruments already in effect,
such as the Inter-American Treaty of Reciprocal
Assistance (the Rio Treaty), the resolution on
Inter-American Military Cooperation approved
at the Washington Meeting of Foreign ]VIinisters
of 19.51, and the continuous planning of the Inter-
American Defense Board.

The agreement is the ninth of its kind to be
signed between the United States and one of the
other American Republics. Similar agreements,
involving the provision of military grant aid by
the United States to promote the defense of the
Western Hemisphere, have been signed with
Ecuador, Peru, Cuba, Brazil, Chile, Colombia,
Uruguay, and the Dominican Republic-

These agreements were initiated under the pro-
gram of military grant aid for Latin America,
authorized in the Mutual Security Act of 1951.
They illustrate the spirit of cooperation prevail-
ing among the American Republics which makes
it possible for them to concentrate, through self-
help and mutual aid, upon increasing their ability
to contribute to the collective defense of the
Western Hemisphere.

U.S. and Japan Sign
Tax Conventions

Proes release 199 dated April 16

On April 16, 1954, Acting Secretary Smith and
tlie Japanese Ambassador, Sadao Iguchi, signed
two conventions between the United States and
Japan for the avoidance of double taxation and
the prevention of fiscal evasion, one relating to
taxes on income and the other relating to taxes
on estates, inheritances, and gifts.

The provisions of those conventions follow, in
general, the pattern of tax conventions entered
into by the United States with a number of other
countries. The conventions are designed, in the
one case, to remove an imdesirable impediment
to international trade and economic development
by doing away as far as possible with double tax-
ation on the same income, and in the other case,
to eliminate double taxation in connection with
the settlement in one country of estates in which
nationals of the other country have interests or
in connection with the making of gifts.

' For text of the agreement with Ecuador, see Bulletin
of Mar. 3, 1952, p. 336.

692

Deparfmenf of Stafe Bulletin

So far as the United States is concerned, the
conventions aj^ply only with respect to United
States (that is, Federal) taxes. They do not apply
to the imposition of taxes by the several States,
the District of Columbia, or the Territories or
Possessions of the United States.

Under the terms of the conventions, they will
be brought into force by the exchange of instru-
ments of ratification. Meanwhile, each country
will take such action as is necessary in accordance
with its own constitutional procedures with a view
to ratification. The conventions will be submitted
to the United States Senate for advice and consent
to ratification.

On the occasion of the signing of the conven-
tions, notes wei'e exchanged confirming an imder-
standing regarding the application of certain
provisions of the income-tax convention.

Extension to: Somaliland (notification by Italy given
March 12, 1954)

Postal Matters

Universal postal convention, with final protocol, annex,
regulations of execution, and provisions regarding air-
mail and final protocol to the provisions regarding air-
mail. Signed at Brussels July 11, 1952. Entered into
force July 1, 1953. TIAS 2S0O.

Ratifications deposited: Austria — March 19, 1954; United
Kingdom — March 11, 1954.

Application to: Channel Islands and Isle of Man (notifica-
tion by the United Kingdom given JIarch 11, 1954)

BILATERAL

El Salvador

Agreement for extension of agreement establishing a mili-
tary aviation mission in El Salvador dated August 19,
1947 (TIAS 16.3.S). Effected by exchange of notes at
San Salvador December 2, 1953 and March 11, 1954.
Entered into force March 11, 1954. To continue in force
until December 31, 1955.

Current Actions

MULTILATERAL
Germany

Agreement on German external debts. Signed at London
February 27, 1953. Entered into force September 16,
1953. TIAS 2792.
Ratifications deposited: Belgium — January IS, 1954 (in-
cluding Belgian Congo and Ruanda-Urundi) ; Canada —
November 14, 1953 ; Denmark— October 13, 1953 ; Iran-
December 22, 1953 ; Ireland— November 12, 1953 ; Liech-
tenstein— December 31, 1953 ; Norway — October 8, 1953 ;
Pakistan — October 27, 1953 ; Switzerland — December 31,
19.53 (with a declaration) ; Union of South Africa —
January 1, 1954;
Present agreement entered into force for the above coun-
tries on the dates of their respective deposits.

Japan

Agreement relating to the reduction of Japanese contri-
butions under Article XXV of the Administrative Agree-
ment of February 28, 1952 (TIAS 2492). Effected by
exchange of notes at Tokyo April 6, 1954. Entered into
force April 6, 1954.

STATUS LISTS 2

Agreement Between the Parties

to the North Atlantic Treaty

Regarding the Status of Their Forces^

Labor

Convention (No. 74) concerning the certification of able
seamen. Adopted at Seattle June 29, 1946. Entered
into force July 14, 1951.

Ratification registered: United States of America — April

9, 1954
Present agreement entered into force for the United States
on April 9, 1954.' Proclaimed by the President April 13,
1954.

Narcotic Drugs

Protocol bringing under international control drugs out-
side the scope of the convention of July 13, 1931 for
limiting the manufacture and regulating the distribu-
tion of narcotic drugs, as amended by the protocol signed
at Lake Success on December 11, 1946. Done at Paris
November 19, 1948. Entered into force December 1,
1949; for the United States September 11, 1950. TIAS
2308.

' Also presently in force for Belgium, Canada, France,
the Netherlands (including the Netherlands Antilles),
Portugal, and the United Kingdom.

May 3, ?954

signed at London June 19. 1951 by Belgium, Cun.ida, Denmark, France, Ice-
land, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United
Kingdom of Great Biitain and Northern Ireland, and the United States
of America.

Stale

France

Norway

Belgium

United States of America

Canada

Netherlands

Luxembourg

Date of deposit

of i7ittfrjimci>l of

ratification

Sept. 29, ] 952
Feb. 24, 1953

27. 1953 ^
24, 1953'

28, 1953
Nov. 18, 1953*
Mar. 19, 1954<

Feb.
July

Aug.

Date of
entry into force

Aug.
Aug.
Aug.
-■Vug.

23, 1953
23, 1953
23, 1953
23, 1953
Sept. 27, 1953
Dee. 18, 19.53
Apr. 18, 1954

2 As of Apr. 20, 1954.

' Declaration by the Governments of Belgium, Luxem-
bourg, and the Netherlands regarding this agreement
.signed June 19, 1951.

* Instrument of ratification included the declaration of
June 19, 1951.

' Instrument of ratification included a statement.

693

Protocol on the Status of

International Military Headquarters Set Up

Pursuant to the North Atlantic Treaty '

THE CONGRESS

Signed at Paris August 28, 1962 by Belgium, Canada, Denmark, France,
Greece, Iceland, Italy. Luxembourg, the Netherlands, Norway, Portugal,
Turkey, the United Kingdom of Oreat Britain and Northern Ireland, and
the United States of America.

State

Norway

Iceland

United States of America
Belgium

Dale of deposit

of instrument of

TOtificalion

Feb. 24, 1953
May 11, 1953
July 24, 1953
Mar. 11, 1954'

Date of
entrti into force

Apr. 10, 1954

Apr. 10, 1954

Apr. 10, 1954

Apr. 10, 1954

THE DEPARTMENT

Designations

Samuel D. Boykln as Chief, Division of Biographic
Information, effective April 12.

Robert R. Robbins as Deputy Director, Office of De-
pendent Area Affairs, effective April 11.

FOREIGN SERVICE

Appointment

Charles D. Hilles, Jr., as special legal adviser to the
U.S. High Commissioner for Germany, effective April 19
(press release 204).

Confirmation

The Senate on April 9 confirmed the nomination of
Edward B. Lawson to be Ambassador to Israel.

' Declaration by the Governments of Belgium, Luxem-
bourg, and the Netherlands regarding this protocol signed
at Brussels June 20, 1953.

' Instrument of ratification included the declaration of
June 20, 1953.

Current Legislation on Foreign Policy
83d Congress, 2d Session

To Provide for the Orderly Settlement of Certain Claims
Arising out of Acts or Omissions of Civilian Em-
ployees and Military Personnel of the United States
in Foreign Countries and of Civilian Employees and
Military Personnel of Foreign Countries in the
United States. Hearings before the Subcommittee
of the House Committee on Foreign Affairs on H. R.
7819. March 18 and 19, 1954, 56 pp.

Extension of Emergency Foreign Mercliant Vessel Acqui-
sition and Operating Authority. Report to accom-
pany S. 2371. S. Rept. 1087, March 24, 1954, 12 pp.

Providing Transportation on Canadian Vessels. Report
to accompany S. 2777. S. Rept. 1089, March 24, 1954,
2 pp.

Use of Nonappropriated Funds by Executive Agencies
(Bonn-Bad Godesberg Area Construction Program).
Eleventh Intermediate Report of the Committee on
Government Operations. H. Rept. 1387, March 24,

1954, 25 pp.

Passamaquoddy International Tidal Power Project. Re-
port of tlie House Committee on Foreign Affairs on
S. J. Res. 12, a Resolution Requesting a Survey of
the Proposed Passamaquoddy Tidal Power Project.
H. Rept. 1413, March 24, 1954, IV, 6 pp.

Hospitalization in the Philippines. Report to accompany
H. R. 8044. H. Rept. 1414, March 24, 1954, 11 pp.

Amending Sections 3185 and 3186 of Title 18, United
States Code. Report to accompany H. R. 2556. H.
Rept. 1416, iMarch 25, 1954, 10 pp.

Claims for Damages, Audited Claims, and Judgments Ren-
dered Against the United States. Communication
from the President of the United States Transmitting
a Proposed Supplemental Appropriation to Pay Claims
for Damages, .\uditeil Claims, and Judgments Ren-
dered Against the United States, as Provided by
Various Laws, Amounting to $1,553,745. S. Doc. 110,
March 29, 1954, IS pp.

International Contingencies — Department of State. Com-
munication from the President of the United States
Transmitting a Proposed Draft of a Proposed Pro-
vision Pertaining to the Fiscal Year 1954 for the
Department of State International Contingencies.
S. Doc. Ill, March 31, 1954, 2 pp.

Providing for the Admissibility in Certain Criminal Pro-
ceedings of Evidence Obtained by Interception of Com-
munications. Report to accompany H. R. 8649. H.
Rept. 1461, April 1, 1954, 6 pp.

Naturalization of Former Citizens of the United States
Who Have Lost United States Citizenship by Voting
in a Political Election or Plebiscite Held in Occupied
Japan. Report to accompany S. 1303. S. Rept. 1178,
April 5, 1954, 7 pp.

Fuel Investigation : Venezuelan Petroleum. Progress Re-
port of the House Committee on Interstate and For-
eign Commerce Pursuant to H. Res. 127, 83d Congress.
H^ Rept. 1487, April 6, 1954, 18 pp.

A Fiscal Analysis of the International Operations of the
United States for the Fiscal Years 1953, 1954, and

1955. Thirteenth Intermediate Report of the House
Committee on Government Operations. H. Rept. 1505,
April 7, 1954, 10 pp.

German Con.sulate-America House Program (Part 2).
Fourteenth Intermediate Report of the House Com-
mittee on Government Operations. H. Rept. 1506,
April 7, 1954, 12 pp.

694

Department of State Bulletin

May 3, 1954

Ind

ex

Vol. XXX, No. 775

American Principles. Americans Abroad (Colligan) . . . 663

American Republics. Observance of Pan American Day

(Holland) 675

Atomic Energy

A First Step Toward the Peaceful Use of Atomic Energy

(Strauss) 659

The Search for Means of Controlling Atomic Energy

(Lodge) 687

Belgium. Registration of Belgian and Congolese Secu-
rities 673

Claims and Property. Formal Claim Filed Against Guate-
malan Government 678

Congress, The. Current Legislation 694

Ecuador. Conciliation of Boundary Dispute Between Peru

and Ecuador 678

Educational Exchange. Americans Abroad (Colligan) . . 663
Europe. U. S. Loan to European Coal and Steel Com-
munity (text of communique) 671

Foreign Service

Appointment. Hilles 694

Confirmation. Lawson 694

Greece. FOA Allots Funds to Greece and the Nether-
lands 674

Guatemala. Formal Claim Filed Against Guatemalan

Government 678

Indochina. Conversations in London and Paris Concerning

Indochina (Dulles) 668

International Information. The Quest for Truth Through

B^reedom of Information (Hotchliis) 682

International Organizations and Meetings

Calendar of Meetings 680

Conversations in London and Paris Concerning Indochina

(Dulles) 668

Meeting of NAC Ministers (text of communique) . . 670
Secretary Dulles Leaves for Paris and Geneva (Dulles) . . 669
U. S. Delegations to International Conferences .... 691
U. S. and Mexico Discuss Broadcasting Problems . . . 678
Japan. U. S. and Japan Sign Tax Conventions .... 692
Korea. Armistice Agreement Violations (Lacey) . . . 689
Mexico. U. S. and Mexico Discuss Broadcasting Prob-
lems 678

Military AfTairs

Armistice Agreement Violations (Lacey) 689

Military Assistance Agreement with Nicaragua .... 692
Mutual Security

F0.\ Allots Funds to Greece and the Netherlands . . . 674
U. S. Loan to European Coal and Steel Community (text

of communique) 671

Voluntary Agencies to Aid in Technical Cooperation Pro-
gram (Stassen) 674

Netherlands. FOA Allots Funds to Greece and the Nether-
lands 674

Nicaragua. Military Assistance Agreement with Nica-
ragua 692

Peru. Conciliation of Boundary Dispute Between Peru

and Ecuador 678

Protection of Nationals and Property. Registration of Bel-
gian and Congolese Securities 673

Refugees and Displaced Persons. U. S. Protests Actions of
Soviet Union in Germany (Dowling note to Sem-
enov) 671

State, Department of

Designations. Boykin, Robbins 694

Treaty Information

Conciliation of Boundary Dispute Between Peru and

Ecuador 678

Current Actions 693

Military Assistance Agreement with Nicaragua .... 692

U. S. and Japan Sign Tax Conventions 692

United Nations

Confirmation. Baker 686

Current U. N. Documents 679

The Quest for Truth Through Freedom of Information

(Hotchkis) 682

The Search for Means of Controlling Atomic Energy

(Lodge) 687

U. S. S. R. U. S. Protests Actions of Soviet Union in Ger-
many (Dowling note to Semenov) 671

Name Index

Baker, George P 686

Boykin, Samuel D 694

Carmichael, Leonard 691

Colligan, Francis J 663

Dowling, Walter 671

Dulles, Secretary 668, 669

Giacchero. Enzo 673

Hilles, Charles D., Jr 694

Holland, Henry F 675

Hotchkis, Preston 682

Lacey, J. K 689

Lawson, Edward B 694

Lodge, Henry Cabot, Jr 687

Monuet, Jean 672

Potthoff, Heinz 672

Robbins, Robert R 694

Smith, Walter B 672

Stassen, Harold E 674

Strauss, Lewis L 659

Check List of Department of State
Press Releases: April 19-25

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

I'ress releases issued prior to April 19 which
appear in this issue of the Bulletin are Nos. 179 of
April 5, 195 and 196 of April 13, and 199 and 200 of
April 16.

No. Date Subject

203 4/19 Peru-Ecuador l)oundar.v conciliation

204 4/19 Hilles appointment (rewrite)

205 4/20 Delegation to Migration Committee

206 4/20 Claim for land expropriation in

Guatemala

207 4/20 Dulles : Departure for Paris, Geneva

208 4/22 Delegation to Executive Committee of

Pan American Sanitary Organization

209 4/24 IMilitary Assistance Agreement,

Nicaragua (rewrite)

210 4/23 Loan to Coal and Steel Community

211 4/23 Holders of Belgian and Congolese

securities

212 4/23 Remarks by Smith, Monnet

D. S. GOVERNMENT PRINTINS OFFICE: 1954

Foreign Relations of the United States . . .

the basic source of information on U.S. diplomatic history

1936, Volume IV, The Far East

Department

f

Stat

This volume is divided into three main sections: The Far
Eastern Crisis, China, Japan. There is also a short section on
Siam (Thailand).

Reports on conditions in the Far East which form a back-
ground for the later outbreak of war comprise the major
portion of this volume. Direct negotiations between the
United States and Far Eastern governments in 1936 were of
relatively minor importance save for those connected with
Japan's withdrawal from the London Naval Conference (re-
corded in Foreign Relations, 1936, Volume I, General, The
British Commomvealth and Foreign Relations, Japan 1931-
1941, Volume I).

While 1936 was a period of relative inactivity in Japan's
extension of power in China, evaluations of the situation by
American diplomats showed that they were not lulled into any
delusion that Japanese aggressive aims were ended.

Two dramatic incidents of especial significance, one in Japan
and one in China, are reported on at length in this volume. The
first was the outbreak by an army group who on February 26
assassinated a number of high Japanese ofiicials. The second
was the detention by force of Chiang Kai-shek at Sian, Decem-
ber 12-25, to bring pressure upon him for leading united
Chinese resistance to Japan.

Copies of this volume may be purchased from the Superin-
tendent of Documents, Government Printing Office, Washing-
ton 25, D.C. for $4.50 each.

Order Form

To: Supt. of Documents Please send me copies of Foreign Relations of the United

Govt. Printing Offioe States, 1936, Volume IV, The Far East.

Washington 25, D.C.

Name:

Ettcloaed And:

Street Address:

%

(cttsh, check, or City, Zone, and State:

money order).

^3^3. //f

J

^Ae'

^fe^

e^

Vol. XXX, No. 776
May 10, 1954

BUILDING A COOPERATIVE PEACE THROUGH
INTERNATIONAL UNDERSTANDING • Address

by the President 699

TOWARD A FREE KOREA • Statement by Secretary

Dulles 704

FACING REALITIES IN THE ARAB-ISRAELI

DISPUTE • by Assistant Secretary Byroade 708

THE UNITED NATIONS RECORD OF ACCOMPLISH-
MENT • by Henry Cabot Lodge, Jr 721

U.S. ECONOMIC POLICY TOWARD UNDER-
DEVELOPED COUNTRIES • Statements fcy
Preston Hotchkis 725

AFRICAN ISSUES BEFORE THE TRUSTEESHIP
COUNCIL'S THIRTEENTH SESSION • Article by

Benjamin Gerig » 716

For index see inside back cover

Boston Public Li'-rary
Superintendent of Documents

MAY 2 4 1954

fJAe z/)efi€i/yl^ent o^ t^lcUe V^ W 1 1 \j L i J. J.

Vol. XXX, No. 776 • Pubucation 5454
May 10, 1954

For sale by the Superintendent of Documents

U.S. Government Printing Office

Washington 26, D.C.

Fbice:

52 Issues, domestic $7. CO, foreign $10.25

Single copy, 20 cents

The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1962).

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

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, 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
well as special articles on various
phases of international affairs and the
functions of the Department. Infor-
nuttion is included concerning treaties
and internatioruil 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 interruitional relations, are listed
currently.

Building a Cooperative Peace Througii International Understanding

Address hy the President ^

Eight years ago — almost to the day — I addressed
the Bureau of Advertising [of the American
Newspaper Publishers Association]. At that
moment, the horror of war was a bitter memory of
the i-ecent past. A revulsion against war or any
reminder of war possessed our people. The at-
mosphere was charged with emotionalism that
could have destroyed our military strength.
Fortunately, our newspapers did not then permit
us, nor are they now permitting us, to forget the
ever-present reality of aggressive threat.

Aggression is still a terrible reality, though on
all the continents and the islands of the earth,
mankind hungers for peace. This universal hun-
ger must be satisfied.

Either tlie nations will build a cooperative peace
or, one by one, they will be forced to accept an
imposed peace, now sought by the Communist
powers, as it was hy Hitler.

But free men still possess the greater portion of
the globe's resources and of the potential power
to be produced from those resources. They pos-
sess scientific skill, intellectual capacity, and sheer
numbers in excess of those available to the Com-
munist world. Consequently, free men can have
a cooperative peace, if with hearts and minds
cleansed of fear and doubt, together they dedicate
themselves to it in unity and in understanding and
in strength.

It is urgent that we try to clarify our thinking
about the prospect. Let us start with our own
present position. This Nation is a marvel of pro-
duction, rich in total wealth and individual earn-
ings; powerful in a unique combination of scien-
tific, military, economic, and moral strength. For
generations our country has been free from the
devastation of war in her homeland and is blessed
with staunch and friendly neighbors. We covet
no nation's possessions. We seek only the friend-
ship of others. We are eager to repay this price-
less gift in the same coin.

Surely, the United States, by all the standards
of histoiy, should possess a genuine peace and
tranquility.

' Made on Apr. 22 before the American Newspaper Pub-
lishers Association at New York City.

Two Basic U.S. Policies

But our Nation today is not truly tranquil. We,
her people, face a grave danger which, in essence
at least, all of us understand. This danger, this
peril calls for two far-reaching policies or pur-
poses behind which all in our country should be
solidly united. They are:

First: All our efforts must be bent to the
strengthening of America in dedication to liberty,
in knowledge and in comprehension, in a depend-
able prosperity widely shared, and in an adequate
military posture.

Second: This strength — all of it — must be de-
voted to the building of a cooperative peace among
men.

Now these are the fixed purposes of the vast
majority of our people. But in a world of ideo-
logical division, competitive rivalry, turbulent
crisis in one place and political upheaval in an-
other, their achievement demands far more than
good intentions or glowing words.

If we are to build and maintain the strength
required to cope with the problems of this age,
we must cooperate one with the other, every sec-
tion with all others, each group with its neighbors.
This means domestic unity, about which I talk
incessantly. Unity does not imply rigid conform-
ity to every doctrine or position of a particular
political figure. But it does require a common
devotion to the cardinal principles of our free sys-
tem, shared knowledge and understanding of our
own capacities and opportunities, and a common
determination to cooperate unreservedly in striv-
ing toward our truly important goals. This type
of unity is the true source of our great energ;^ —
our spiritual, intellectual, material, and creative
energy.

Furthermore, our people, strong and united,
must cooperate with other nations in helping build
a cooperative peace. Such cooperation requires
the American people to increase their understand-
ing of their fellow men aroimd the globe. Like-
wise, the nations beyond our shores must come to
understand better the American people — particu-
larly our hopes and our purposes. And, because of
the relatively greater stake we have in world sta-
bility, because history has decreed that respon-

May 10, 1954

699

sibility of leadership shall be placed upon this
Nation, we must take the initiative in the develop-
ment of that genuine international understand-
ing on which a cooperative peace must be built.

In these truths I find my justification for this
appearance before you. The increase of under-
standing and knowledge is a task that cannot be
accomplished solely by our schools or our churches
or from political platforms. The malignant
germs of misunderstanding and misinformation
are at work in the minds of men 24 hours of every
day. To combat them challenges the study and
the effort of every individual who occupies any
position of influence on public opinion.

Every newspaper, every magazine, every radio
and television station has the mission of bringing
home to all our people and to as many other people
of the world as we can reach, the facts of existence
today. But this is not enough.

Need for Balanced Presentation

Every agency of human communication also
must help people everywliere achieve perspective
with respect to facts. Suppose the American press
should faithfully report the details of every crime
committed in our country but should be invariably
silent on the apprehension and punishment of
criminals. Would there not soon be created a
universal impression of national lawlessness, dis-
order, and anarchy? Facts must be related one
to the other in truthful perspective. Only within
such framework shall we reach clear decisions in
the waging of the continuous struggle for a
stronger America and a peaceful world.

Domestic unity and strength as well as inter-
national imderstanding depend, therefore, in great
part, on the free flow of information and its bal-
anced presentation.

Now I am not suggesting that the cause of do-
mestic unity would be served by any attempt of
yours to slant the news or to turn your news col-
umns into editorials. The consequent loss of pub-
lic respect and confidence would soon destroy the
influence of the press. But I do believe most
earnestly that the press should give emphasis
to the things that unite the American people equal
to that it gives to the things that divide them.

News of events which divide may be more spec-
tacular than news of developments which unify.
But a free press can discharge its responsibility
to free people only by giving all the facts in bal-
ance. Facts in perspective are vital to valid citi-
zen judgments. Sound judgment is crucial to
the preservation of freedom. Hence a free press
can sustain itself only by responsibly reporting
all the facts and ideas — the spectacular and the
unspectacular, the unifying facts and the divisive.

Could not reader-understanding be as powerful
a criterion in newspaper offices as reader-interest ?
Need these two qualities be incompatible ? I think
not. Certainly, the great joui-nalists of our day,

in critically examining and reporting on a legis-
lative proposal, must inevitably deal with such
constructive questions as: Does it or does it not
tend to sustain our economy, to provide needed
military strength, to increase our understanding
of others or others' understanding of us? Dops
it give us a more secure position internationally?
Does it promise to preserve and nurture love of
liberty and self-dependence among our people?
Does it improve our health and our living stand-
ards? Does it insure to our children the kind of
nation and government we have known ?

If proposed laws and policies are described as
mere battle grounds on which individuals or
parties seeking political power suffer defeat or
achieve victory, then indeed is the American sys-
tem distorted for us and for the world. If the
fortunes of the individual supporting or opposing
a measui-e become, in our public accounts, as im-
portant as the principle or purpose of the project
and its effect upon the nation — then indeed are
we failing to develop the strength that under-
standing brings. If the day comes when personal
conflicts are more significant than honest debate
on great policy, then the flame of freedom will
flicker low indeed.

I trust you do not view my remarks as an at-
tempt to tell you how to run your own business.
I am, however, willing to take the risk of your
misinterpretation. James Madison once wrote:
"A popular government without popular infor-
mation or the means of acquiring it is but a
prologue to a farce or a tragedy or perhaps both."
So we are talking of a problem that the responsible
governmental official cannot ignoi-e, just as none
of you can close your eyes to it.

We are not moving toward farce or tragedy.
But knowledge of the facts and of their interre-
lationships is more than ever essential to the solu-
tion of human problems.

I know that to present the facts in perspective
is a difficult task. The haste of living creates
reader impatience. It discourages complete ex-
planation and places a premium upon cliches and
slogans. We incline to persuade with an attrac-
tive label or to damn with a contemptuous tag.
But catchwords are not information. And, most
certainly, sound popular judgments cannot be
based upon them.

On the steady, day-by-day dissemination of com-
plete information depends our people's intelligent
participation in their own government. For them
that is no light thing. The decisions they must
make are crucial in character and worldwide in
scope. On them depend all the necessities and
comforts of life — from the amount of money in
their pocketbooks, the pavement on their high-
ways, the housing in their towns, to the sort of
country they will leave behind as a heritage to
their children. They need full and accurate in-
formation. Your newspapers can give it to them.

700

Department of State Bulletin

In every question where they have it, their deci-
sions will be sound.

Now if increased knowledge and understanding
are necessary to promote the iniity of our people,
they are equally necessary to the development of
international cooperation. At this juncture in
world affairs, ignorance of each other's capacities,
hopes, prejudices, beliefs, and intentions can de-
stroy cooperation and breed war.

Nowhere on this planet today is there an im-
pregnable fortress, a continent or island so distant
that it can ignore all the outer world. If this is
not to be the age of atomic hysteria and horror,
we must make it the age of international under-
standing and cooperative peace. Even the most
rabid Marxist, the most ruthless woi'shipper of
force, will in moments of sanity admit that. In-
ternational understanding, however, like domestic
unity, depends — in large part — on the free, full
flow of information and its balanced presentation.

But recent reports state that 75 percent of all the
people who inhabit the earth live under censor-
ship. Illiteracy affects vast numbers in many areas
of the globe. And, of course, there are language
and cultural barriers. Understanding cannot,
under these circumstances, be easily or quickly
achieved. Into the vacuum caused by censorship
and illiteracy pours the positive and poisonous
propaganda of the Soviets. For 24 houre each
day, it pours in.

The Communist propaganda machine, for in-
stance, tirelessly tells all the world that our free
enterprise system inevitably must collapse in mass
unemployment, industrial strife, financial bank-
ruptcy. Time and again, Conmiunistic propa-
ganda has shifted and revereed its tactics. But
this one charge is firmly fixed in the party line
from Marx to Malenkov.

Our United States Information Service, cooper-
ating with similar efforts by friendly nations, seeks
to combat propaganda with truth. Every dollar
we put into it, when wisely used, will repay us
dividends in the triumph of truth and the building
of understanding. But our official Information
Service is properly limited in purpose, as it is in
size. The mass of information of us and to us
must flow through the established publicity media
of the several nations. Of all these we think ours
the best and the most efficient.

Foreign News Coverage

Yet, a study in which, I am told, many of you
cooperated, shows that the average daily news-
paper in tlie United States prints about four col-
umns a day of news stories from abroad. I do not
know whether that is too little, too much, or about
right. But I do know that in this amount of daily
S])ace it is hard to inform the American ])eople
about relevant happenings in all other countries.

Two-thirds of tliis foreign news was found to be
about important f)fficial ceremonies and events in
other countries, about their internal political

crises, their foreign relations involvements, their
official statements and pronouncements. Vei-y
little of the news had to do with the man in the
street or with his social, educational, cultural,
civic, and religious life and history. Yet an im-
derstanding of these is indispensable to an under-
standing of a nation.

The same specialists who studied this question
also examined many European newspapere.
There, too, news about the average American was
scant. Those among you who have spent years
abroad have undoubtedly been amazed by the fre-
quency with which misleading or distorted opin-
ions of our individual and national life are ex-
pressed by citizens of other countries.

It is always disconcerting to hear foreign
friends speaking disparagingly of the American
civilization as a collection of shiny gadgets. It
is alarming to know that we are considered so im-
mature in world politics as to be ready to provoke
a war needlessly and recklessly. It is even worse
to learn that we are often judged as power-hungry
as the men in the Kremlin.

Because of a tragic failure to understand us and
our jDurposes, the citizen of Western Europe fre-
quently looks upon America and the U.S.S.K. as
two great power complexes, each seeking only the
most propitious moment in which to crush the
other by force. He believes also that, in the mean-
time, each seeks alliances with nations throughout
Europe with the sole purpose of using them as
pawns when the moment of crisis arrives. We
Iviiow that we seek only peace, by cooperation
among equals. Success in this gi'eat purpose re-
quii'es that others likewise know this also.

As individuals we are frequently pictured
abroad as rich, indifferent to all values other than
money, careless of the rights of others, and ig-
norant of the contributions others have made to
the progress of Western civilization.

Undoubtedly these misconceptions are partially
the result of Communist propaganda. But they
flourish in the lack of comprehensive, truthful
two-way information.

Here at home we need fuller and better informa-
tion of others, if we are wisely to direct our poli-
cies towaicl real security. Many of us incorrectly
assume that all other countries would like to live
under a system identical or similar to ours. Some
believe that all foreigners are lazy or decadent —
that few pay taxes, that they hate us for the sole
reason that we are prosperous. We hear often
that the people of a particular nation are cow-
ardly, or have no love of country or pride in their
citizenship. Too often we think of them as physi-
cally weak, intellectually shallow, and spiritually
defeated.

Of course, there are individuals everywhere
who fit these descriptions — but it is dangerous to
us and to peace when we carelessly speak in gener-
alities of this kind, characterizing an entire
nation.

May 10, 1954

701

We live in a small world, and only by a cooper-
ative effort of the free peoples occupying impor-
tant areas can we build security and peace. It is
not a question of turning the press, radio, tele-
vision, and newsreels into media of sugar-coated
propaganda, "selling" America to the Frenchman,
France to the German, and Britain to the
American.

It is quite different from that. I repeat : For
understanding we need the facts and the perspec-
tive within which they fit. I am sure that the
fi"ee press in all free countries has made real prog-
ress in this direction. But I think a lot more can,
and by all means should, be done. The future of
all of us depends upon it.

No group can be more effective in such accom-
plishment than you of the American Newspaper
Publishers Association. Here, indeed, is an en-
deavor worthy of your talents and skills.

Within the framework of friendly alliances, we
are joined with hundreds of millions among the
free nations in working agreements, primarily
concerned with military security but inescapably
dealing with every hope and every concern of daily
life. Together we live in a mighty arena, bounded
by the polar regions, practically encircling the
globe, peopled by men and women of independent
nations. These peoples, with scanty information
and miderstanding of one another, are now allies
of convenience under Communist threat; but to-
morrow they could be full partners permanently
joined in mutual understanding, impelled by corri-
mon aspirations. Among the nations of that vast
arena, at least, war can become unthinkable —
quickly. A cooperative peace among tliem is no
mirage of the dreamer.

Within the United Nations, we possess a global
forum where we can plead the cause of peace
so that even the men of the Kremlin must listen.
Their ears may be stopped to the spirit of our
words. Their minds, however, cannot forever be
shut to the facts of the age within which we — and
they — must live, physically separated one from
the other by a few hours of flight.

We cannot hope with a few speeches, a few
conferences, a few agreements to achieve the most
difficult of all human goals — a cooperative peace
for all mankind. Here may I say, my friends,
that your representatives in the diplomatic world
have no other thought or no other purpose tlian
that which I have just stated : the achievement of
a cooperative peace among the free nations and
eventually to enlarge that by appealing to the
common sense, representing the facts of the world
as they are today to all others, so that even the
iron wall must crumble and all men can join
together.

Tribute to Secretary Dulles

To lead that kind of effort, we are blessed —
and I say we are blessed, and I believe it from the

bottom of my heart — with a man whose whole
life has been devoted to this one purpose, who
from babyhood has studied and thought and con-
templated how to achieve this one great goal of
humankind, well knowing that within his life-
time perfection cannot be attained, but to do his
part in reaching it. I cannot tell you how sin-
cerely I believe that every one of us — every one of
160 million people — owes a great debt of gratitude
to Foster Dulles.

Free men do not lose their patience, their
courage, their faith, because the obstacles are
mountainous, the path uncharted. Given under-
standing, they invariably rise to the challenge.

Never, then, has there been a more compelling
and rewarding time to work for international
understanding, to labor for cooperative peace.

I most firmly believe that the American people's
decision to strengthen our country — in moral lead-
ership, in intellectual stature, in military posture,
in a dependable prosperity widely shared — will
be realized. Underlying that decision is a tre-
mendous spiritual energy which I believe to be
adequate to every test. I believe that it grows
from day to day as our people become more and
moi-e aware of the deadly nature of the world's
struggle.

I most firmly believe, too, that world leader-
ship in the cause of cooperative peace lies within
the capacity of America. This capacity will be
realized when everyone here present uses his mind
and his will and all his resources, in union with
others of like influence, to bring about the under-
standing, the comprehension, the determination
we need. Freedom of expression is not merely a
right — in the circumstances of today, its construc-
tive use is a stern duty. Have we, have you as
jniblishers, the courage fully to exercise the
right and perform the duty?

Along with patriotism- — understanding, com-
prehension, determination are the qualities we
now need. Without them, we cannot win. With
them, we cannot fail.

A Time of Great Decisions

I?e?narA's hy the President ^

White House press release dated April 26

I think each of us senses that when we meet, as
you are meeting today, we are doing so in a time
of great decisions. I think it is no longer neces-
sary to enter into a long argument or exposition
to show the importance to the United States of
Indochina and of the struggle going on there.
No matter how the struggle may liave started, it
has long since become one of the testing places
between a free form of government and dictator-

' Made before the U.S. Chamber of Commerce at
Washington, D. C. on Apr. 26.

702

Department of State Bulletin

•sliip. Its outcome is going to have the greatest
significance for us, and possibly for a long time
into the future.

We have here a sort of cork in the bottle, the
I bottle being the great area that includes Indonesia,
Burma, Thailand, all of the surrounding areas
of xVsia with its hundreds of millions of people,
and its geographical location that controls lines
of communication, to say nothing of the great
products of the region, some of which we must
I have.

Moreover, it is a region with which the newly
formed and democratic type of govermnent in
Japan must trade. If it is denied the opportunity
to trade with that area, how can Japan with its
s.'i million people ever develop into a civilization
that we would consider dependable, in that it also
tiled to live in the concept of dignity of the human
and according to the precepts of free government?

And then we turn our eyes to Geneva, and we
see representatives of great — and some antag-
onistic— powers meeting there, trying to arrive
at some situation that at least we could call a
modus Vivendi. We do not hope, I think, very
soon to have the type of understanding that we
believe we can ultimately develop among ourselves
as to great issues. But we would hope that the
logic of today's situation would appeal to all
l)eoples, regardless of their ruthlessness, so that
they would see the futility of depending upon
war, or the threat of war, as a means of settling
international difficulty.

That conference is meeting in the terms of
another great development of our time — the atomic
age, which has so greatly increased the destructive
power of weapons that we sometimes visualize in
a single destructive and surprise attack almost a
decisive act in the event of an outbreak of
hostilities.

In all these things we must, of course, prevent
ourselves always from overexaggerating danger,
just as we refuse to become complacent because of
our historical position of geographic isolation.
We do look at them seriously. I am sure that
every American that I know looks at them seri-
ously. But I am certain also that America does
not forget the power that is concentrated in the
faith that we have, in the character of our govern-
ment, the character of the system under which we
live, and our confidence that by putting our shoul-
ilers to the wheel, we can pull through any
difficulty.

The great problem of this meeting this week is
time, so that it does not become a major catas-
t rophe but that we do adhere to the old principle,
"A stitch in time saves nine." But as we think
about all of these crises in the world, and their
elfect upon us, it does illustrate emphatically a
doctrine by which the Chamber of Commerce has
long lived — that no nation can live alone. We are
dependent upon others, as they are dependent upon
lis, a truth that you have well exemplified in all

tAay 70, J 954

your actions for many years, including your sup-
port of the United Nations.

Admittedly an imperfect instrument for the
settlement of these great difficulties, and for the
elimination of these great threats of danger, it is
still a forum where the world can still talk instead
of fight. And that, in itself, is a great advance.
It has, in my opinion, accomplished so much in
the late years that, because the things it has pre-
vented have not happened, we sometimes overlook
them.

I think our attitude toward the United Nations
should be support, and betterment, and improve-
ment.

Now, because we do have the purpose in this
world of promoting peace, of better understand-
ing, of starting by promoting this understanding
among nations who are disposed to be friendly to
us — the nations still independent — there is one
truth we must always remember. I can put it in
military tenns : You can do nothing positive in a
campaign unless you have a firm base from which
to start.

In the same way, the United States can do
nothing positive in the form of leading the world
toward cooperative security, unless it is firm and
confident at home.

And so the legislative programs that are sub-
mitted to the Congress by the executive depart-
ments, that are carefully worked out with con-
sultations with people such as yourselves, and
with agricultural, financial, and labor organiza-
tions throughout the country, and other people,
have as their purpose a firm, sound economy at
home and reasonable, enlightened policies abroad.

In this foreign field there is just one item to
which I should like to call your attention this
morning: the Report of the Randall Commission,-
and the message placing it before the Congress
for suitable action.^

The point I want to make is this : It is a mod-
erate pi'ogram — if you like, a middle-of-the-road
program. It attempts to evaluate, and understand
and recognize, the needs of certain types of indus-
tries at home, at the same time that it recognizes
the great and crying need for sound relationships
with our friends abroad. The additional truth,
that we cannot forever be an Atlas, and through
gifts and grants and loans — it has become, almost,
grants — supporting the rest of the world. But
there must be a method worked out by which with
mutual profit to all of us, trade can go ahead,
strengthening their economies and their stand-
ards, as ours are strengthened. Recognizing that
adjustments and certain sacrifices have to be made
to bring this about, it also recognizes that tliero
is no sacrifice here implied or involved that is
half as great — a twentieth as great — as the risk
of bringing about a falling apart of cooperative
socuritv and increasing the danger of war.

' For excerpts, see Bulletin of Feb. 8, 1954, p. 187.
' Ibid., Apr. 19, 1954, p. 602.

703

So you do meet at a time when grave issues are
being studied and examined by people who are —
like you — ordinary Americans longing for peace,
striving to see that peace shall be our lot, and
shall be our prize. They do it exactly as you do it,
by meeting together, by discussing the problems,
by trying to find a solution which adheres to com-
mon sense and to logic, that avoids the extremes
on both points, by trying to go down that broad
middle way where the great and vast majority
of Americans — indeed of the world — can go in
perfect accord and unity.

I would say only one additional thing. From
war I learned one lesson that I recall right this

minute. And that is this: A long face never
solved any difficult problem. As you apjjroach
these problems you must do so in the conhdence
that America is great and is powerful and that it
can do anything when we are united among our-
selves. You must do so in the certainty that you
are striving for the positive factors of happiness
and enjoyment in this life and not in the mere
negative idea that we are avoiding destruction
or disaster this one day. There must be an ap-
proach that reflects confidence, courage, and the
certainty that you- — and your cliildren — are going
to have this great America, and live in it, and
be as proud of it and its past as we are this day.

Toward a Free Korea

Statement hy Secretary Dulles ^

We are here to establish a united and inde-
pendent Korea. It may be given us to write a
new page in what has been a tragic history. The
people of Korea for centuries lived together as
one nation, and together they have long endured
foreign subjugation and aggression. They have
sought to be united in freedom and independence.
This is a right which no nation or group of na-
tions can legitimately deny them.

The United States has come here with the Re-
public of Korea and with the other governments
whose armed foi-ces came to Korea's assistance in
a renewed and determined effort to aid the Korean
people to realize their reasonable and rightful
aspirations.

Wliy does Korea remain divided? The 1943
Declaration of Cairo promised that victory over
Japan would be used to make Korea "free and
independent." But that has not happened.

The present phase of Korea's martyrdom goes
back to August 1945. Then the United States,
which had for 4 years borne the burden of the
Japanese war, agreed that the Soviet Union might
move into Manchuria and Korea north of the SSth
parallel to accept there the surrender of the Japa-
nese. But the Soviets, having gotten into North
Korea for one purpose, stayed on for another pur-
pose. Their goal has been, directly or through
puppets, to turn North Korea into a satellite state

' Made at the third plenary session of the Geneva Con-
ference on Apr. 28 (press release 219).

and, if possible, to extend their rule throughout
all Korea. In so doing, they have consistently
defied agreements with their former allies and
also the collective will represented by the United
Nations.

It is important that we should constantly bear
in mind that what is here at stake is not merely
Korea, imj^ortant as that is ; it is the authority of
the United Nations. The United Nations as-
sumed primary responsibility for establishing
Korea as a free and independent nation. It
helped to create the Eepublic of Korea and nur-
tured it. When aggressors threatened the Re-
public of Korea with extinction, it was the United
Nations which called on its members to go to
Korea's defense.

Korea provides the first example in history of a
collective security organization in actual opera-
tion. If this Conference is disloyal to the United
Nations and its decisions, then each of us will
bear a share of responsibility for destroying what
protects us all.

Yesterday the delegates of the Eepublic of Ko-
rea and of Colombia told eloquently of the mission
which the United Nations had assumed in rela-
tion to Korea. It is a story that bears repetition.

The United Nations first took jurisdiction of the
Korean problem in 1947. It then created a Tem-
j)orary Commission for Korea to help organize a
Government of Korea and to observe the initial
elections. The Soviet Union refused to permit
the United Nations Commission to have access to

704

DepaMment of Sfafe Bullefin

Xortli Korea. Elsewhere the Commission func-
tioned as the United Nations had intended.

In December 1948 the United Nations General
Assembly received the report of its Temporary
Commission and adopted, by a vote of 48 to 6,
with 1 abstention, a resolution declaring :

That there has been established a lawful government
(the Government of the Republic of Korea) having effec-
tive control and jurisdiction over that part of Korea where
the Temporary Commission was able to observe and con-
sult and in wiiich the great majority of the i)eople of all
Korea reside; that this Government is based on elections
which were a valid expression of the free will of the
elertorate of that part of Korea and which were ob-
served by the Temporary Commission ; and that this is
the only such Government in Korea.

The United States, trusting to the moral authority
of the United Nations and the charter undertak-
ings of its members, withdrew its own armed
forces from South Korea. That left South Korea
with only local forces suitable for maintenance
of internal order. In contrast, the Soviet Union
rapidly built up the war power of the Communist
regime it liad installed in North Korea. On June
25, 1950, these forces launched a full-scale attack,
implemented with many Russian-made tanks and
planes.

The United Nations Temporary Commission,
which was present on the spot and the membership
of which included India, instantly and unani-
mously found that this was armed aggression and
so reported to the United Nations Security Coun-
cil. That Council in turn, by a vote of 9 to 0,
with 1 absence and 1 abstention, certified to the
fact of aggression and called on the members of
the United Nations to help to resist the aggression.
Sixteen nations responded with military contribu-
tions, and over 40 responded with either military
or material aid.

Aggressors Routed

The small and lightly armed forces of the
Republic of Korea were initially overpowered by
the assault. The Communist aggressors quickly
occupied all of Korea except a small beachhead
at Pusan. But the forces of the Republic of
Korea quickly rallied; the United Nations mem-
bers gave increasing support. A brilliant mili-
tary operation, involving a bold landing at Inchon,
caught the aggressors off balance and enabled the
United Nations Command to break out of the
Pusan beachhead. The aggressors were routed
and destroyed as an effective force.

It seemed that the United Nations could now
complete its earlier action to unify Korea. Ac-
cordingly, on October 7, 1950, the General Assem-
bly set up a new body, known as the United
Nations Commission for the Unification and Reha-
bilitation of Korea (Uncurk), to complete the
task of the previous commissions. The new
Commission proceeded to Korea.

But the long-sought unification and freedom of
Korea was not yet to be. Another Communist
aggression intervened. In November 1950 the
Communist Chinese regime sent masses of its
armed forces into northern Korea. The United
Nations General Assembly by a vote of 44 to 7,
with 9 abstentions, adjudged this intervention to
be aggression.

The United Nations Command was forced to
withdraw again to the south of Korea. But
again tliey fought their way back to a point where
tlie aggressors held less territory than when they
had committed the initial aggression from the
38th parallel.

On July 27, 1953, an armistice was concluded
with the United Nations Command. This was no
free-will gift of peace by the Communists. It
came only after fanatical efforts to break the line
of the United Nations Command had failed with
ghastly losses to the attackers. And it came
only after the Communists realized that, unless
there was a quick armistice, the battle area would
be enlarged so as to endanger the sources of aggres-
sion in Manchuria. Then and only then did the
Connnunist riders judge that it would be expe-
dient to sign the armistice.

The armistice contemplated that there should
be a Political Conference with reference to Korea
within 3 months. But the Communists found it
inexpedient to live up to that agreed recommenda-
tion. They desired first to consolidate their posi-
tion in North Korea.

Only now does the Korean Political Conference
meet, after long liaggling over the composition
and place of meeting. The composition and the
place of the Conference are precisely those which
the United Nations side proposed 6 months ago.

Tliis fact enables one to judge where lies the
responsibility for the delay.

The 7-year story I have summarized is a story
of persistent attack against the forces of inter-
national law and order represented by the United
Nations. Whether this attack will still prevail
may be determined by this Conference.

During the same 7-year period of 1947 to date,
the Governments of France, Great Britain, and
the United States have been working with the
Soviet Union to bring about a imification of Ger-
many and liberation of Austria. There have been
hundreds of meetings of the Foreign Ministers or
their aides on these subjects. Nothing has been
acconqilished. But something has been learned.
This Conference can usefully have that in mind
as we judge the proposals which come before us
here.

Communist Fear of Freedom

Soviet Communist conduct seems to have been
largely influenced by fear of freedom.

The Communist ruhng class believes that a so-
ciety is most peaceful and most productive if its

May 10, 1954

705

members conform to a pattern which is prescribed
by rulers possessed of absolute power. This in-
herently involves a suppression of freedom, for
freedom implies diversity, not conformity.

But it is not enough that freedom be suppressed
witliin what is now the Soviet orbit. Freedom
is contagious. Accordingly, freedom outside that
orbit cannot be acquiesced in. The area of sup-
pression must be constantly expanded in order
to preserve the existing area of suppression.

Thus, the Soviet Communist rulers seem to have
been driven by their own doctrine, by their own
fears, to seek constantly in one way or another
to extend their control until there is finally
achieved the goal which Lenin referred to as "the
amalgamation of all nations" and which Stalin
referred to as "the amalgamation of the masses
into a single state union."

It may be said that Lenin and Stalin arc dead.
So they are. But their doctrine is not dead. It
continues to be taught to Communists throughout
the world, and they continue to practice it
throughout the world.

As the record stands to this date, the Commu-
nist rulers have at no time, at no place, voluntai'ily
relaxed tlieir grasp on what they had. This is
so even though, as in the case of Eastern Germany,
Austria, and North Korea, they had promised
tbat the grasp was only temporary. Also, in
every non-Communist nation of the world the
agents of international communism work to
achieve the amalgamation of the nation and its
people into the system of Communist dictatorship.

The problem wliich we face here at Geneva is
the same problem that has been faced elsewhere.
It is the problem of achieving "peace" and "democ-
racy" in the historic meaning of those words.
These are alluring words, rich in their traditional
meaning. Communist propaganda has adopted
them as lures to trap the unwary. It must be re-
membered that when the Communists speak of
"peace" they mean a society of conformity under a
single directing will. When they speak of
"democracy," they mean a "dictatorship" of the
proletariat.

The sum of the matter is this :

When we negotiate with the Soviet Communists
and their satellites, we are confronted with some-
thing far more formidable than individual or
national lust for glory. We are confronted with
a vast monolithic system which, despite its power,
believes that it cannot survive except as it suc-
ceeds in progressively destroying human freedom.

I do not present this analysis in a mood of pes-
simism, but rather in a mood of realism. Com-
munist doctrine authorizes accommodation when
the opposition is strong. It is our task here to
show such strength of honorable and nonagirres-
sive i)urpose that the Communists will find it ac-
ceptable to grant unity and freedom to Korea.

Yesterday three proposals were made for the so-
lution of the problem of Korea. The Eepublic of

706

Korea and the Republic of Colombia advocated a
solution giving vitality to the resolutions of the
United Nations with reference to the establish-
ment of a united and free Korea.

The proposal of the North Korean Communist
regime was, however, something different. It did
not so much as mention the United Nations or its
resolutions. These, it seems, are to be treated as
nullities.

Similarity to Scheme for Germany

The Communist proposal is in essence the same
as that made in June 1950 as a prelude to the armed
attack upon the Republic of Korea. Also, it is
strikingly similar to the scheme which the Soviet
Union presented at Berlin last February for the
unification of Germany.- Conformity, you see, is
the Communi.st rule.

The present Communist proposal on Korea pro-
vides that the freely elected Government of the
Republic of Korea, representing at least three-
quarters of the Korean people, would be forced
into combination, on a basis of equality, with the
Communist regime ruling a small minority of the
peoT)le in the North.

General elections are proposed by the Commu-
nists under a law the tenns of which would be
subject to veto by the Communist regime. The
proposal stipulates that the election conditions
.should exclude all "foreign interference." Pre-
sumably this is intended to exclude United Na-
tions supervision.

The sclienie is designed to destroy the authority
of the existing Government and to replace it by a
Communist puppet regime.

The North Korean Communist proposal like-
wise requires that all foreign forces should be
withdrawn from Korean territory within 6
months. The United Nations forces would have a
long way to go. The Chinese Communist forces
would have only a few miles to go. They could
quickly return.

The United States does not desire its troops to
remain indefinitely in Korea. But we remember
that once before we had our troops in Korea and
withdrew them, as it turned out, prematurely.
We do not want that history to repeat itself.

This then is the North Korean proposal. The
United States must reject that proposal because
it does not meet the requirements of a free, unified,
and independent Korea, for which so much blood
has been expended and sufFering endured.

Peace is always easy to achieve — by surrender.
Unity is also easy to achieve — by surrender. The
hard task, the task that confronts us, is to combine
peace and unity with freedom.

The people of the Republic of Korea know free-
dom, and they have fought and suffered as have
few others to preserve their freedom.

■ For text, see Bulletin of Fob. 15, 1954, p. 228.

Department of State Bulletin

I have myself seen the freedom of the Republic
of Korea.

I have been to the University of Seoul and seen
the young men and women of Korea eagerly ac-
quiring knowledge in a free, liberal educational
institution.

I have attended sessions of the Korean Assembly
; and seen the functioning of this body, whose mem-
bers had been chosen by freely contested elections
observed by a United Nations Commission.

I have met in a vast auditorium with thousands
of Christian refugees who had recently fled from
North Korea into the Republic of Korea to escape
the religious jDcrsecution of the Communist North
and to gain the freedom of religion which pre-
vailed in the Republic of Korea.

The Republic of Korea, which fought so val-
iantly for freedom, will never accept unity at the
])rice of thinly disguised annexation by the Soviet-
(hinese Communist bloc. The United States sent
over 1 million of their youth to fight in Korea to
save Korea from violent annexation by aggressors.
( )f them, over 140,000 became casualties. Cer-
tainly we are not disposed, here at the council
table, to give away what our sons battled so bravely
to preserve.

It is basic that whatever program is adopted
liere for the unification of Korea must in fact also
be a program which will assure the freedom in
Korea.

Workable Program at Hand

A workable program for unifying Korea does
not have to be invented by us. It is already at
hand. It was laid down by the United Nations
General Assembly resolution of October 7, 1950.
That is the resolution, to whicli I have already
referred, which established a Commission to com-
plete the unification of Korea by observing elec-
tions in that part of Korea where observed elec-
tions have not yet been held.

That United Nations Commission (Unctubk) is
at this moment waiting in Korea ready to fulfill
its clear and precise mandate from the United
Nations.

Accomplishment of that mandate would com-
plete the unification and freedom of Korea, which
was interrupted first by Soviet obstruction in 1948,
then by North Korean Communist aggression in
June 1950, and then by the Chinese Communist
aggression of November 1950. Now that aggres-
sion has been thwarted, the interrupted work of
the Commission should proceed. That is our
pi'oposal.

It would require the Chinese Communist regime
to withdraw their forces of aggression and occu-
pation from North Korea so that the ITnited Na-
tions can complete its task in an atmosphere free
of menace.

It is important to think of freedom not only in
terms of the freedom of individuals but also in

terms of national freedom. Korea is a peninsula
of such strategic value that it has for many years
been the subject of big-power politics. Russia,
Japan, and China have successively sought to use
Korea to serve their own policies of aggrandize-
ment. For a long time the Koreans have not been
the masters of their own destiny. That should be
ended.

The United States seeks no advantages in Ko-
rea. We are in the process of concluding a mutual
security treaty with the Republic of Korea. But
that treaty implies no aggressive purpose, and the
United States does not seek thereby to gain a
forward position which could menace anyone.

Japan is no longer an aggi-essive force and has
loyally undertaken to refrain from the threat or
use of force against the territorial integrity or
political independence of any other country.

The Republic of Korea has itself no ambitions
which extend beyond its natural borders.

Are Soviet Russia and Communist China will-
ing to renounce ambitions which would be served
by control of Korea ? If so, it will be possible to
give Korea that national independence whicli the
United Nations has been seeking for Korea and
which the Koreans want for themselves.

Such a Korea should, of course, be a member of
the United Nations and enjoy the added dignity
and protection which membership may give. It
may be recalled that the Republic of Korea applied
for membership in the United Nations in 1949.
It was prevented only by a Soviet Union veto in
the Security Council. That is another of the
wrongs which we should agree here to remedy.

There are those who feel that past experience
and cold reason combine to show the futility of the
task which we here undertake. I do not inidercsti-
mate the difficulty of that task. But I still feel that
we need not be discouraged and that it is not a
waste of our time to seek resourcefully to achieve
our allotted goal.

We properly recall the failures of the past, so
that we may profit bv experience. But we also can
remember that the future is never a mere repeti-
tion of the past.

We need not let cold logic chill our hopes. We
know that those who live by faith prevail in the
end over those who live by calculation.

It is right that Korea should be united and
should be a free and independent nation able to
realize a destiny which conforms to the peaceful
aspirations of its people.

It is right that the United Nations should be
sustained as an authority to which all peoples, for
all time, may turn to save them from the scourge
of war and to assure the dignity and worth and
equal rights of nations large and small.

Our duty is to pursue these goals witli dedica-
tion and with a pm-ity of purpose which admits
of no self-aggrandizement. Then we shall have
done our part in serving principles of moral order,
which impose themselves on men and nations.

May 10, 1954

707

Ambassador Dean To Confer
With President Rhee

The Department of State announced on April 22
that Arthur H. Dean, at the request of Secretary
Dulles, would proceed immediately to Seoul,
Korea, to confer directly with President Rhee
regarding the Geneva Conference.

On learning of President Ehee's decision to ac-
cept, for the Republic of Korea, the invitation to

attend the Conference, Secretary Dulles expressed
his gratification to President Rhee and suggested
that Mr. Dean go to Korea as the special repre-
sentative of the Secretary of State, with the per-
sonal rank of Ambassador, so that in conjunction
with U.S. Ambassador Ellis O. Briggs he could
convey directly to President Rhee the latest de-
tailed views of the United States Government and
consult with him regarding various aspects of
the Geneva Conference. President Rhee has ac-
cepted the Secretary's suggestion.

Facing Realities in the Arab-Israeli Dispute

hy Henry A. Byroads

Assistant Secretary for Near Eastern^ South Asian and African Affairs '

Tonight I shall speak of the Middle East. Pub-
lic addresses on this subject often take the same
form. There is a general review of the importance
of the Middle East, and this is stated in terms of
its people, its strategic location, and its natural
resources. One covers the economic and political
problems of the area. Then there is an outline of
the role of the United States in attempting to
assist in the development and stability of this im-
portant area. It is within this context that a
specific problem of the Middle East is usually dis-
cussed. This format is used because such an ap-
proach aids immeasurably in putting each spe-
cific problem in the context where its true impor-
tance can be properly evaluated.

I am going to reverse this procedure tonight
and talk more about a specific problem and the
bearing it may have upon the Middle East as a
whole. I refer to the Arab-Israeli complex of
problems. There is a stereotype presentation on
this subject as well. One covers the history be-
hind the conflict — the divergent points of view —
and such advice as he can muster for a solution.
I wish to reverse this procedure as well and de-
vote my time to a few fundamentals tliat, in my
opinion, lie at the very roots of this dispute.

I shall begin with certain developments within
our own country. It is natural for an American,
surrounded as he seems to be with the necessities
of life at hand, to be to a certain extent an isola-
tionist. The American is moved from that posi-
tion only reluctantly and only when he senses de-

' Address made before the American Council for Judaism
at Philadelpliia, Pa., on May 1 (press release 223).

velopments overseas that may change his way of
life. Apart from a basic instinct of humanitarian-
ism, he does not wish to concern himself with
matters overseas unless this appears to be a
necessity.

Thus the thoughts of Americans are turned
largely within our own country except in event of
war or threat of war that can affect our own
security. America had the luxury of concentrat-
ing its attention almost exclusively upon its own
development until fairly recently. The first World
War involved our forces in Europe, and America
came to know Europe far better. This was an
interest which lasted because the making and pres-
ervation of ])eace was a vital interest to us. The
second world conflagration took us to the Far East
as well as to Europe. America again had a costly
lesson in geography and again has retained her
interest because of the uneasy and interrupted
peace that has followed. In these interruptions
we have come to know Korea, and now Indochina
is a familiar spot on the map to nearly every
American.

With all of these developments, America now
knows that insecurity almost anywhere in the
world can affect our own security. It is with tlus
new realization that American eyes turn toward
the Middle East. This time we are determined
that our attention will be focused on an area prior
and not subsequent to an outbreak of hostilities
that may affect us.

In looking toward the Middle East, America
sees an area generally defenseless and with sucli
internal and external problems as to submerge,
in the thinking of its people, the real danger we

708

Deparfment of Stale Bullefin

see to all nations who strive for continued freedom.
The American wonders why these sources of fric-
tion cannot be cured. He feels his Government
should do what it can to ease these trouble spots.
He sees them as diverting energies that are needed
for creating strength and a better standard of
living. These he would wish for all free people
instinctively ; now he sees in the absence of such
conditions a threat to his own welfare and security.

Our own emergence as a leader in the free world,
and the inherent responsibilities thereof, coupled
with the fact that we see for the first time a con-
tinuing and grave threat to our security, make it
inevitable that we should attempt to be a factor
leading toward progress and stability across the
entire Middle East. This is a trend of historical
significance which has an important bearing upon
our approach to, and concern over, eacli of the
factors of instability in the Middle East.

Wlienever the United States became concerned
about the security of the Middle East as a whole—
and I believe the process started in earnest some
two or three years ago, certain consequences bear-
ing upon our central subject for this evening would
also be inevitable. We would see on the one hand
the people of Israel become restive and to a certain
extent emotionally excitable over what the conse-
quences of such a trend might mean to them. They
would wonder how far our concern with conditions
in the area as a whole would lead to a lessening of
interest of America toward the support of Israel.
In their concern they might imagine that the ef-
forts of the United States across the area would
lead us to seek friendships at the expense of the
interests of their own state. The Arab peoples, on
the other hand, sensing a new importance in our
eyes, might conclude that their bargaining position
had risen. Some of them would press relent-
lessly— as they sensed the move of the pendulum —
to shove it all the way so that a policy of "impartial
friendship" would in effect mean complete par-
tiality toward their side. They would thus be
critical of honest eiforts of the United States to
carry out this policy of impartiality. Criticism
would thus be in store for the United States from
both sides of the Arab-Israeli Armistice lines.

It seems to me we have reached the stage in this
process where each side honestly feels we are par-
tial to the otiier. In a crude sort of way perhaps
this could be called progi'ess — progress toward the
ultimate goal of having both sides feel we are truly
impartial. It is not a situation, however, about
which one can take pleasure. It is, for instance, a
concern to us that Israel is prone to see dangers to
hei-self in such a process and to exaggerate far
beyond what seem to us to be the realities of the
situation. We see no basis in our acts to justify
her fear that her legitimate interests are placed in
jeopardy by United States concern over the area
as a whole. We might rather ask her what would
be the fate of her State — as we can, of course, ask
the Arabs as well — if the Middle East continued

in turmoil and the whole of the area was lost to
the control and influence of the Soviet Union.

To understand our concern over developments in
this part of the world, it is necessary to understand
that we do see an increasing danger that the Middle
East may be relegated to a satellite status under
the Soviet Union. Most people in the Middle East
who read this statement will label it as "alarmist"
and without foundation of fact. The very fact
that this reaction will exist is partly the cause of
our concern.

Growing Danger of Soviet Aggression

It has been my view that the Middle East, on
the timetable of the Soviet Union, has been placed
in priority behind that of Europe and the Far
East simply because they look upon it as an area
that can wait. The more Russia's aggi-essive moves
are stalemated in Europe and the Far East, the
more the danger grows for the Middle East.

There are now a number of indications that
Soviet intentions are being focused to a new de-
gree upon this part of the world. Throughout
my entire tenure in my present position, I have
been expecting this change of attitude to show
itself within the United Nations. This has now
happened. Tlie Arab-Israeli aonflict, so often
before the United Nations, has until recently been
free of abusive veto power of the Soviet Union.
They have now wielded their veto twice in suc-
cession on this matter in the Security Council.
They are stepping up their propaganda among
the groups in the Middle East who are suffering
most acutely from the prolongation of tensions
and hardships occasioned thereby — and who are
thus most susceptible to such propaganda. It
must be obvious to anyone that, if the Soviet
Union were to succeed in an effort to move into
that area and accomplish thei-e what they have
accomplished in North Korea, in Cliina, "and in
the satellite countries of Eastern Euro])e, the free
countries of both Europe and the Far East would
be outflanked and in greatly increased peril. The
land gateway to Africa would be open. The tre-
mendous resources of the area would be in enemy
hands.

Many in tlie Arab world see this extension of the
hand of Russia as a friendly move to take their
side of the case against Israel. Tliey have sent
messages of appreciation to Moscow". I believe
this facade of friendship to be indeed a motive
of tlie Kremlin — but T believe it to be only a by-
product of tlieir real intentions. In this, as m
many other past acts of the Kremlin, we see a
double objective. One of these, and it is the
lesser, is to make the Arab world feel Ru-ssia has
lionest friendly intentions toward tliem. The
odicr, and this we see as tlieir primary objective,
is to stymie United Nations action in order to
maintai?) and increase the dangerous tensions that
exist within the area. If we can derive any bene-

May 10, 1954

709

fit from past acts of Soviet Russia, it should at
least be an appreciation in advance that the
Kremlin would consider such results to be in her
overall interests.

We hope all concerned, in their obsession over
local problems within the area, will not look
with blind eyes upon these new developments, as
they have within them the seeds of trouble greater
than they have ever known.

Let us' tonight try to look beyond the claims and
counterclaims of misdeeds, border incidents, and
propaganda of both sides ,df the Arab-Israeli
dispute. These are in large part symptoms of the
disease. Let us look rather at what appear to be
some of its fundamentals.

Looking at the Fundamentals

In dealing with these fundamentals I should
like to make one stipulation and one explanation.
In response to every public address on this prob-
lem, we are always confronted with the reaction :
"Someone should remind this speaker that certain
other factors — which he failed to mention — also
exist." The stipulation, therefore, is that I real-
ize that what I list here tonight will not be in itself
complete — nor could it be within the contents of
one short address. Tlie explanation concerns the
reason why I should feel impelled to speak so
frankly of policies or acts of other sovereign states.
My reason is that I feel the dangers in this situ-
ation are such that the American people are en-
titled to be informed of underlying facts of a
dispute which may increasingly affect the security
of the Middle East — and hence of our own
country.

POSSIBILITY OF EARLY PEACE TREATY

The first fundamental I would list is that the
possibility of an early and formal peace treaty
type of settlement between Israel and the Arab
States just does not exist. As the whole world so
sorely needs a solution — and the dangers of a con-
tinuation of a prolonged armistice are so great —
one can only reach such a conclusion with the
greatest reluctance and concern. I can only give
it as a conclusion of one who has devoted the major
share of his working hours to this problem over a
considerable period of time. Many times during
that period I have challenged the validity of that
conclusion, only to be convinced again of its basic
soundness. There is no inspired formula which
can quickly erase the underlying causes for the
mutual feeling of hostility and distrust that
exists between Israel and the Arab States.

To reach such a conclusion does not mean los-
ing hope, but rather to establish a basic fact. The
difficulties in solving this issue do not lie in the
techniques of approach by outside powers — how-
ever imperfect they may be — but in the substance

of the problem itself. The first lesson is, there-
fore, clear. All concerned should abandon a
will-of-the-wisp search for an all embracing
formula and concentrate on what can be done —
within the limits of practicability — on the sub-
stance of the matter.

Let no one doubt, because of what I have just
said, that a basic policy of the United States is to
see peaceful conditions established in the Near
East. To those Arab critics of a portion of my
recent address at Dayton ^ who say that the
United States must realize that the attainment of
better relations between Israel and the Arab
States should be abandoned as a U.S. objective,
my answer is that they may as well know now
that our country cannot accept such a price to
earn the friendship of the Arab States, a friend-
ship which it so earnestly desires.

To those, however, who demand immediate and
forceful action on our part to obtain peace, I ask
that they not lose sight of the conditions which
must be fulfilled before a genuine and lasting
peace can be achieved. We all remember that at
tlie close of the First World War a very neat job
of peacemaking was done at Versailles. The
leaders of the World sat around the conference
table and gave their best thought to the drafting
of what was going to be a comprehensive peace
settlement to last for all time. The conditions for
peace, however, were not established and the job
done at Versailles went for naught.

Wlien we ask the Arab States to accept the ex-
istence of the State of Israel and refrain from
liostile acts toward her, it seems only fair to me
that they should have the right to know, with far
greater assurances than have ever been given them,
the magnitude of this new State. They look upon
it as a product of expansionist Zionism which, re-
gardless of any present promise or paper treaty,
will ultimately commit aggression to expand to
suit its future needs.

UNDERSTANDING ARABS' FEAR

Tlie second fundamental I would list is, there-
fore, that this fear of the Arabs .should be under-
stood and met not only by the assurances of great
powers but by Israel itself.

I again refer for convenience's sake to niy re-
cent Dayton speech. In that speech, I said Israel
should see her own future in the context of a
Middle Eastern state and not as a headquarters
of worldwide groupings of peoples of a particular
religious faith who must have special rights
within and obligations to the Israeli State. This
sentence has been interpreted by some as an intru-
sion into religious matters, improper for a gov-
ernmental official. The fact is that I was re-
ferring, among other things, to one of the key
reasons for the above fear of the Arabs.

°- Bulletin of Apr. 26, 1954, p. 628.

710

Department of Stale Bulletin

I was not referring in any way to, or casting
aspei'sions upon, the natural feeling of affinity
one feels for a brother of his own religious faith,
wlierever he may be. The principles of the United
States on matters of religious freedom are so well
known that this assertion of mine should need no
expansion.

Nor was I referring in any way to proper phil-
anthropic support, in its broadest sense, by Ameri-
can citizens of Jewish faith in the economic
development necessary to achieve a reasonable
I standard of living of Israel's people — nor to sup-
! port of religious, educational, and cultural enter-
j prises in Israel. There is no divergence between
our Government and American citizens of tlie Jew-
ish faith who ai-e interested in the development
and welfare of the State of Israel.

Wliat I was referring to were matters of grave
concern in my own field of foreign affairs. As an
example, let us consider, for instance, the question
of immigration into Israel, in connection with the
fear I have just mentioned on the part of the
Arabs.

If we can turn to logic, it seems to me that this
particular aspect of the overall problem should be
one within the realm of possible correction. It is
a fact now that immigration has fallen off to in-
significant numbers, and there is often a close
balance between incoming and outgoing for any
given period. It is also in all probability a fact
that natural factors, including the economics of
the situation, would prevent people from volun-
tarily crowding together to where overpopulation
could reach the danger point. It is also a fact that
in the past 6 years most of the historic trouble
spots for world Jewry have been evacuated.
There remain in the world only two areas where
really large populations of those of Jewish faith
still live. One of these is the United States. It
does not seem to me to be a fact that a great mass
of Americans of Jewish faith are about to emigrate
and take on Israeli citizenship. The other area is
the Soviet Union and its satellites. We know that
the lot of the Jews behind the Iron Curtain, like
that of many other religious or ethnic gi-oups, is
a miserable one, and our heart goes out to them as
to all others in that category. Yet we do not see
the Kremlin opening its gates, with all the obvious
disadvantages to it of such a break in its curtain,
to release these unfortunate people of the Jewish
faith. If and when the Soviets decide to do so, it
will be because of their desire to set the area aflame
by fostering new and greater trouble in the Middle
East. If such an eventuality actually happened,
the magnitude of the problem would be sucli that
the whole free world, not just Israel, would have to
concern itself with the resettlement of Jewish
immigrants from behind the Iron Curtain.

One might expect all the above should be so well
known that the subject of immigration into Israel
should not be a source of tension. This, unfortu-
nately, is not the case. It is not peculiar to this

area of the world that one suspects his enemy of
the worst and never the best. In the emotions
which surround this problem, such sheer logic does
not spread. Wliat does spread like wildfire
throughout the Middle East is a series of state-
ments from Israel calling for greatly expanded
immigration. A constant fear is that these
urgings in terms of extra millions will be heeded.
Tlieir fears are enhanced by the knowledge that
the only limitation imposed by statute on immi-
gration into Israel is, in fact, the total number of
those of the Jewish faith in the entire world.
The Arabs know the capacity of the territory of
Israel is limited. They see only one result — fu-
ture attempt at territorial expansion — and hence
warfare of serious proportions.

My friends, can one be injecting himself into
improper fields by speaking of matters such as this
that lie deep at the roots of a conflict so dangerous
to us? I realize I am referring to matters on
which strong religious and humanitarian feelings
exist on the part of many. I can only implore
those who have such feelings not to ignore the
feelings of others, nor the dangers of the world in
which we live. Surely it is not asking too much
to ask Israel to find some way to lay at rest these
fears of her neighbors and remove this specter —
which does not seem to be based upon reality —
from minds in the Middle East. The tensions of
the Middle East, which are translating themselves
into almost daily needless loss of human lives,
could be considerably lessened if wise statesman-
ship could find a way of such accomplishment.

DISTRUST OF U.S. MOTIVES

Another fundamental which I believe American
citizens in particular must consider is the fact
that there is a great deal of mistrust of the gi-eat
powers and, in particular, the United States on
the Arab-Israeli issue. This may come as a shock
to many an American who would find it hard to
believe that our motives could be so misunderstood.

I believe the Arab world today believes that
the United States would not allow an attack by
them upon Israel with the purpose of driving her
into tlie sea. I also believe, however, that in gen-
oral the Arab people are not convinced that the
opposite is true — and that they question our ability
to fulfill our obligations in opposing aggression
under the Tripartite Declaration of 1950^ if Is-
rael liersclf sliould decide upon expansive aggres-
sion. I do not believe they doubt the sincerity of
the leaders of our Government when they clearly
restate our adlierence to that declaration — but
tliey wonder at our ability to follow through.
'I'liey wonder if the domestic political aspects of
such a problem in the United States, as well as
within the domestic scenes of our allies — but par-
(it'ularly in the United States — might not make it
i inpossible for us to live up to our stated intentions.

' Ihid.. June 5, 1950, p. 886.

May 10, 1954

711

I know the Arabs are wrong in this interpreta-
tion of the American people. Yet I believe it is
a fact that many of them do have such an inter-
pretation. One can only ask their reporters in
this country to make a further real effort to judge
the temper of the American people. I am con-
fident that after such a renewed study they would
indicate to their governments that America would
back no state, including Israel, in a matter of ex-
pansive aggression and that its opposition would
be equally strong regardless of which side started
such a move.

If this fact could be established in the Arab
mind, we would have passed one of our greatest
difficulties in dealings with them. Wlien and if
such reports from their own representatives will
begin to have an effect in the Arab world we do
not know. We will know, however, when that
effect has taken place because we will then en-
counter a far greater measure of confidence on
the part of the Arab world.

REFUGEE SITUATION

Another fundamental we should keep in mind is
the fact that a portion of the people involved in
this dispute are homeless. The reason behind this,
as with nearly every other facet of the whole com-
plex of Arab-Israeli problems, is itself in dispute.
More time and effort is spent upon justifying this
or that stand as to who is more nearly to be blamed
than is spent upon how to solve the problem that
now exists. Wliat a breath of fresh air would be
given the world if all concerned would simply ad-
mit the fundamental fact that these people are
homeless — are in desperate want — and are uncom-
pensated for their property and other losses that
they have suffered. Can anyone benefit by the
continued compression of these people in tiny
areas and in other circumstances that make for
moral degeneration and the making of a new
generation fed on bitterness and hate?

There is a moral obligation in this situation
that rests upon the countries immediately involved
and upon all of the countries who have a stake in
world peace. A solution of this problem would
do more than anything else to reduce the incidents
of border violence.

For our part, we have seen the most practical
and long-term solution for the majority of these
people to be the provision of new lands for set-
tlement. Material assistance has been provided
to the United Nations by this country as well as
others to make such developments possible. The
United States has expressed its willingness to help
provide funds for a development plan of the
Jordan Valley which would allow resettlement of
a sizable portion of the Arab refugees. We have
also indicated our willingness to assist in develop-
ments elsewhere which would provide the oppor-
tunity for employment and the eventual procure-
ment of homes for large numbers of people. The

United States has also stood for the resettlement
of a portion of the refugees in the territory of
Israel. It should be borne in mind that they
mostly lived as farmers on terraced land which
probably only they are likely to make fertile and
productive.

Some small progress is being made, but this
approach alone is probably too slow in the face
of the present situation. One must loolv, there-
fore, to additional steps that might have a more
immediate effect. One of these is the question
of compensation. These refugees, after many
long years, are still uncompensated for the loss
of their property, both real and personal, which
was left behind in Israel.

The sense of property is almost as integral a
part of the makeup of modern man as the sense
of a family or nation. So long as the refugees
have no meaningful assurances that they will ever
be compensated for their property, it will be hard
for them to adjust to a new set of conditions or
to bend their efforts toward finding a new liveli-
hood. They read every day of transactions
whereby the "abandoned'' property left behind
in Israel is being transferred, bought, and sold.
They have heard many statements made of the
intentions of Israel, but such statements in vacuo
are not reassuring. The fact that Israel has ob-
tained and is now using restitution from Germany
while doing nothing toward the compensation of
Arab refugees understandably adds to their
bitterness.

Clearly this is a matter to be attended to. I
do not believe, however, that Israel will refuse
to discuss matters such as this on a realistic basis
with lier neighbors. We beheve Arab govern-
ments who refuse on general principle to entertain
any discussions with their Israeli neighbors may
among other things be depriving themselves and
their Moslem brothers in the refugee camps of
advantages that could be theirs. On the other
hand, if the goal to be sought in the first instance
is the lessenin"^ of tensions along the borders,
Israel might find some way of arranging for
step-by-step moves on such specific problems with-
out giving the suspicion to her neighbors that her
policy is one of "total peace or nothing."

QUARREL BASICALLY NATIONALISTIC

There is another fundamental which we should
have in mind, if only for the sake of our own
understanding of the true nature of the problem.
It is that the quarrel which divides the Arab
States and Israel is not basically religious. It is
essentially a nationalistic quarrel such as could
arise with equal bitterness between two other
peoples whose national aspirations clashed.

For many centuries Jews and Arabs lived side
by side in the Middle East in relative harmony.
There is much that is similar in their religions.
Both stem from the same ancient Near Eastern

712

Deparfmenf of State Bulletin

jphilosophy, as does for that matter a large part
jf the Christian religion.

These two peoples of similar language, history,
Lind culture are at each other's throats because
they each want to possess the same piece of land.
The Arabs have opposed the establishment of a
Ji'wish State in Palestine, which ancient history
,us well as religion led the Jews to consider their
.homeland— but which modern history has seen

! |in the hands of the Arabs.

I ' The fact that the Arab and the Jew have differ-
lent though similar religions has importance only
to the degree that recent propaganda may have
made it seem important by calling on all those of
the Jewish faith to support one side and all of
I those of the Moslem faith to support the other.

NEED FOR BASIC CHANGE IN ATTITUDE

The last fundamental I would list is one of basic
iittitude. Perhaps in the end there would be no
I advantage at all in formal peace — even if it could
'be quickly obtained — unless there could be some
basic change in the attitude with which one looks
upon his neighbor. The formalities of paper
agreements mean little if there remains thereafter
contempt and suspicion. This is a matter in which
an outsider can have little influence, but he can
point out the need to display a sincere wish for
the desire for better relations if they are ever
to be attained.

In this, an attitude of superiority and contempt
for one's neighbor is unlikely to cause a forthcom-
ing response. On the other hand, the world's
history does not record that an attitude of nega-
tivism has produced benefits for anyone. There
is this negativism on the Arab side and it repre-
sents a formidable obstacle for constructive solu-
tions. It seems for them easy jointly to reject but
difficult jointly or individually to adopt policies of
a forward-looking character in connection with
tliis problem. This negativism seems hardened
and confirmed by frontal attack, whether such at-
tack takes the form of reprisal raids or merely a
brilliant diplomatic maneuver such as the scoring
of a point in the United Nations. It can best be
arrested and gradually reduced in proportion by
undramatic and patient efforts over a period of
time. All this presupposes that the fires of hatred
are not meanwhile fed. The world will carefully
watch for any indication of an adoption of a
philosophy, known to be held by a few, that the
only way to make things better is to first make
them worse.

These are some and, again, only some of the
fundamentals that should be kept in mind when
one attempts to judge present-day situations. It
may be dangerously long before sufficient change
in some of the underlying causes for continued
strife are modified to a point where a genuine lack
of hostility can be said to exist.

MoY 10, 1954

297790 — 54 3

In the meantime, the efforts of all concerned
should be devoted to the specific situation along
the border. All concerned, it seems to us, should
cooperate to the utmost with local U.N. Commis-
sions and other arrangements as have in the past
been beneficial, such as the Local Commander
Agreement along the borders. The Arab States
on their part should not refuse in these forums —
or in any other — to discuss ways and means of les-
sening the present-day dangers along the border
and cooperate in making preventive measures more
effective.

It is only with a decrease of immediate incidents
along the borders and a period of relative tran-
quillity that minds can turn to an honest approach
to more fundamental and underlying causes of
this dispute. This atmosphere one would hope
would then be conducive to face the real and per-
manent threat to the whole area. The peoples of
the Middle East could then without distraction
devote more attention to the greater understand-
ing of the real goals of Soviet imperialism. Witli
confidence established in their interrelationships,
all the states of the Middle East could concentrate
and attend their energies to saf egiuird the precious
heritage of freedom to which we all dedicate our-
selves. For the plans of Communist imperialism
envisage the total destruction of the religions,
cultures, and independence of us all. Each one of
us must make some sacrifice to attain the preserva-
tion of common freedom. The United States for
its part has shown that it is willing and anxious
to go far toward making this a reality.

FOA Allotment for Israel

The Foreign Operations Administration an-
nounced on April 19 that $13,125,000 in special
economic aid has been allotted to Israel for the
fourth quarter of the fiscal year, bringing the total
for the year to $52,500,000. For the first three
quarters a total of $39,375,000 had been made
available to Israel under the program to provide
the nation with essential supplies, encourage ex-
port earnings, and bolster local production by
assisting in development of the economy. An
additional $1,487,000 is being devoted to the tech-
nical cooperation program.

Since the first year, when the assistance was
directed principally toward relief, the emphasis
has shifted to development. The program toclay
includes building, new industry, vital reclamation
and irrigation projects, and expansion of food
supply. There is also extensive work under way
in the fields of education, transportation, and
public health and sanitation as part of the teclmi-
cal cooperation program.

713

Turkey Gets $25 Million
To Expand Food Output

Turkey has been granted an allotment of $25
million for farm and manufacturiii^ equipment to
boost its food output, the Foreign Operations Ad-
ministration announced on April 22. With the
assistance funds, Turkish technicians will be sup-
plied, in purchases from the dollar area, with such
items as self-propelled combines and spare parts
and tires and tubes for tractors.

The FoA grant, made under the mutual defense
support program, brings to $46 million the amount
authorized for Turkey in the current fiscal year.

With U.S. assistance, Turkey has been making
significant strides in building up its farm produc-
tion. As recently as 1951, for example, Turkey
was still importing cereals. Today, Turkey ranks
as one of the world's leading exporters of cereals.
United States assistance is of special importance
in Turkey because the Turks are devoting more
than one-third of their budget to their military
establishment — a key factor in the Nato program.

Since 1948, the United States has provided
$323,500,000 (including today's allotment) in eco-
nomic assistance, together with additional millions
in direct military aid.

Italy To Buy Surplus
Agricultural Goods

The Foreign Operations Administration on
April 22 announced a new allotment of $18.5 mil-
lion to finance the procurement of surplus U.S.
cotton, tobacco, and tallow for Italy.

The funds were available under Section 550 of
the Mutual Security Act of 1953.

Of the lire paid for the commodities by Italy,
the equivalent of $18.2 million will be used by the
United States as oifshore procurement funds, to
buy military equipment and supplies produced
in Italy. The remaining $300,000 equivalent will
finance economic development projects in Somalia,
the former Italian colony in East Africa known
as Italian Somaliland, which is now administered
by Italy under United Nations trusteeship.

Netherlands Refugee
Problems Studied

Press release 215 dated April 27

J. A. U. M. van Grevenstein, Director of the
Netherlands Emigration Service, arrived in Wash-
ington on April 26. He is conferring with Scott
McLeod, the Administrator, and with other offi-

cers of the Bureau of Inspection, Security and
Consular Affairs.

Mr. van Grevenstein will examine with Robert
C. Alexander, who is in charge of the Refugee
Relief Program, means of facilitating the migra-
tion of Netherlands citizens under the provisions
of the Refugee Relief Act of 1953. The chief
topic of conversation will be the provisions of the
act insofar as they apply to pereons who suffered
indirectly in last year's flood disaster in the
Netherlands.

Mr. van Grevenstein will also meet with repre-
sentatives of American voluntary agencies to dis-
cuss problems arising in connection with the spon-
sorship of Netherlands refugees who wish to come
to the United States under the Refugee Relief
Program.

Surplus Farm Commodities
for Yugoslavia, Norway

Tlie Foreign Operations Administration on
April 20 announced two new allotments, totaling
$10,235,000, to finance the procurement of surplus
U.S. agricultural connnodities for Yugoslavia and
Norway. Yugoslavia has been allotted $10 mil-
lion, to be used for procurement of wheat, while
the $235,000 earmarked for Norway will finance
wheat and peanut purchases.

The funds are made available under the pro-
visions of section 550 of the Mutual Security Act
of 1953. This section provides that between $100
million and $250 million of mutual security ap-
propriations for the current fiscal year shall be
used to finance surplus U.S. agricultural commodi-
ties to be sold to friendly countries for local cur-
rencies.

The equivalent of $10 million in Yugoslav
dinars to be paid for the wheat by Yugoslavia will
be used by the U.S. Government as offshore pro-
curement funds, to buy military equipment and
supplies produced in Yugoslavia. The $235,000
equivalent in Norwegian krone to be paid by Nor-
way also will be used for U.S. military purchases
in Norway.

This is the second allotment for Yugoslavia
under Section 550. The first one, for $15 million,
was used for financing the procurement of surplus
bread grains, cotton, and lard in the United States
and for transportation in U.S. ships. The dinar
currency proceeds of those transactions are to be
used by the United States for defense purposes,
including offshore procurement.

Norway also received a previous Foa allotment,
of $2.1 million, which financed purchases of sur-
plus soybeans, bread grains, and corn. The local
currency proceeds of those sales were also ear-
marked for offshore procurement.

Foa has now allotted a total of $216,885,000
under Section 550 to finance such surplus com-

714

Department of State Bulletin

modity sales to the United Kingdom, Federal Re-
public of Germany, Norway, China (Formosa),
Finland, Yugoslavia, Israel, Spain, Afghanistan,
Japan, France, and the Netherlands. Out of
these allotments, Foa has issued procurement
authorizations for specific commodities totaling
$188,775,000.

U.S. Renews Protest

in Case of Nikolai Kliokiilov

Following is the text of a letter sent on April
29 hy the Acting U.S. High Commissioner for
Germany., Walter C. Doxcling, to the U.S.S.R.
High Commissioner, Vladimir Semenov, concern-
ing Nikolai E. Khohhlov:

My protocol office has received a letter dated 24
April 1954, from your protocol office stating that
it has been instructed to return my letter of 23
April ^ concerning Nikolai E. Khokhlov on the
ground that the letter contained defamatory and
provocative attacks upon the Government of the
Soviet Union.

In this connection, I should like to remind you
of a statement made by the Soviet Government
on 21 December 1953, in reply to President Eisen-
hower's address to the United Nations on atomic
energy. In this statement the Soviet Govermnent
said:

The Soviet Union regards a policy which would mean
support of acts of sabotage and subversion in other coun-
tries or the financing of secret agents or saboteurs as
Incompatible with normal relations between countries.

[ In view of this statement by the Soviet Gov-
ernment, I am at a loss to understand your per-
emptory rejection of my letter. In the circum-
stances, I can only renew in the strongest terms
the protest conveyed to you therein.

Current U.N. Documents:
A Selected Bibliography ^

General Assembly

Complaint by the Union of Burma Regarding Aggression
Against It by the Government of the Kepublic of
China. Letter dated 1 April 1954 from the Perma-
nent Representative of Burma to the United Nations,

' Bulletin of May 3, 1954, p. 671.

' Printed materials may be secured in the United States
from the International Documents Service, Columbia
University Press, 2960 Broadway, New York 27, N. Y.
Other materials (mimeographed or processed documents)
may be consulted at certain designated libraries In the
United States.

addressed to the Secretary-General. A/2644, Apr. 5,
1954. 9 pp. mimeo.
Ad Hoc Commission on Prisoners of War, Fifth session.
Declaration. A/AC.46/15, Apr. 2, 1954. 3 pp.
mimeo.

Security Council

Letter Dated 6 April 1954, From the Representative of
Israel Addressed to the President of the Security
Council. S/3196/Add. 1, Apr. 6, 19.'54. 9 pp. mimeo.

Letter Dated 5 April 1954, From the Representatives of
Egypt, Iraq, Saudi Arabia, Syria, and Yemen
Addressed to the President of the Security Council.
S/3198, Apr. 6, 1954. 1 p. mimeo.

Letter Dated 8 April 1954 From the Permanent Repre-
sentative of Israel to the United Nations Addressed
to the President of the Security Council. S/3200,
Apr. 8, 1954. 1 p. mimeo.

Letter Dated 8 April 1954 From the Representative of
Israel Addressed to the President of the Security
Council. S/3201, Apr. 9, 1954. 1 p. mimeo.

Secretariat

Structure of the United Nations (Seventh Revision),
January 1954, ST/DPI/8. 94 pp. mimeo.

Disarmament Commission

Letter Dated 8 April 19.54 From the Representative of
India to the Secretary-General Enclosing Extracts
from Statement Made by the Prime Minister of India
in the House of the People on 2 April 1954 on the
Subject of the Hydrogen Bomb. DC/44, Apr. 8,
1954. 6 pp. mimeo.

Economic and Social Council

Financial Implications of Actions of the Council. Work
Programmes and Costs of the Economic and Social
Activities of the United Nations. Note by the Secre-
tary-General. E/2559, Mar. 31, 1954. 46 pp. mimeo.

General Agreement on Economic Regulations for Interna-
tional Road Transport. E/ECE/186, E/ECE/TRANS/
460, Mar. 22, 1954. 38 pp. mimeo.

Draft International Customs Convention on the Tempo-
rary Importation of Private Road Vehicles, Prepared
by the Government of the United Kingdom. Note by
the Secretary-General. E/CONP.16/6, Mar. 31, 1954.
17 pp. mimeo.

The Problem of Synthetic Narcotic Drugs. Compilation
of the Views of Governments on the Use and Control
of Synthetic Narcotic Drugs transmitted in accord-
ance with resolution 505 C (XVI) of the Economic
and Social Council. Note by the Secretary-General.
E/CN.7/277, Mar. 26, 1954. 48 pp. mimeo.

Financial Arrangements for the Expanded Programme of
Technical Assistance. Draft report of the Technical
Assistance Committee. E/TAC/L.69, Mar. 22, 1954.
19 pp. mimeo.

Memorandum by the Secretary -General on the Illicit
TrafiBc in Narcotic Drugs During 1953. E/CN.7/272,
Apr. 12, 19.54. 38 pp. mimeo.

United Nations Conference on Customs Formalities for the
Temporary Importation of Private Vehicles and for
Tourism. Seope and Origin of the Conference and
Description of the Documentation Submitted. E/
CONF.16/3, Apr. 13, 1954. 9 pp. mimeo.

Customs Formalities for the Temporary Importation of
Private Vehicles and for Tourism. E/CN.2/135/
Add.4, Mar. 19, 1954. 21 pp. mimeo.

Draft Protocol Relating to the Status of Stateless Per-
sons. Statement submitted by the World Jewish
Congress. E/C.2/385, Apr. 9, 1954. 3 pp. mimeo.

May TO, 1954

715

African Issues Before the Trusteeship Council's Thirteenth Session

hy Benjamin Gerig

Conditions in the six trust territories in Middle
Africa, namely, Tanganyika, Ruanda-Uriindi,
Frencli Cameroons, British Cameroons, French
Togoland, and British Togoland, were considered
by tlie Trusteeship Council at its thirteenth session
held at New York from January 28 to March 25,
1954. The Council was presided over by Am-
bassador Leslie Knox Munro of New Zealand.^

To appreciate the role which the Trusteeship
Council plays in dealing with this aspect of the
colonial question, it is necessary to have in mind
two basic considerations. The first is that, unlike
colonies, the trust territories do not belong to the
country that governs them ; the second is that the
degree of supervision that can legally be exercised
by the United Nations is much greater in the case
of trust territories than in that of colonies, for
which no supervisory function was provided in the
charter.

It is also important to remember that, although
the trusteeship system includes only 11 out of some
70 existing non-self-governing territories (and
these 11 are all territories taken away from de-
feated enemies in the two World Wars), the stand-
ards laid down by the charter, and their applica-
tion as discussed by the Council, can have an
important influence on colonial policy and admin-
istration generally. Thus, the trusteeship system
may be regarded as a kind of political science
laboratory for developing the best methods of pro-
moting the political, economic, and social advance-
ment of dependent peoples, or perhaps as a forum
in which the best knowledge and experience are
sought on the problem of assisting such people to
become, in the words of the charter, self-governing
or independent.

Actually, the system in practice has fallen con-
siderably short of earlier hopes and expectations.

^ Other representatives were S. S. Liu (Cliina), Mifoiel
Urquia (El Salvador), Max Dorsinville (Haiti). Krisbna
Menon ( India ) , Raf ik Aslia ( Syria ) , Semyon K. Tsarapkin
(U.S.S.R. ), representing nonadrainisterini: members; and
William D. Forsyth (Australia), Pierre Ryckmans (Bel-
gium), Leon Pignon (France), ,Tohn Scott (New Zealand),
Sir Alan Burns (United Kingdom), and Mason Sears
(United States) representing administering members.

For texts of statements made by Mr. Sears during
the session, see Bulletin of Feb. 22, 1954, p. 298 ; Mar. 1,
1954, p. 336 ; and Mar. 22, 1954, p. 453.

Too often, unfortunately, the laboratory method,
where each contributes in a scientific spirit to
seek the best solution of a problem, tends to give
way to what may be called the courtroom method,
■where the administering member appears to be
treated as a prisoner in the dock against whom an
indictment must be secured. The latter method
was more noticeable at the Council's thirteenth
session than at some previous sessions. Wisely,
the framers of the charter provided for an equal
balance between administering and nonadminister-
ing members; consequently, the Council is in-
clined by its very nature to be a body of mutual
accommodation, compromise, and moderation.
By the same token the resolutions it is able to
adopt often do not satisfy the more extreme non-
administering members. In recent years certain
of these members have become increasingly un-
willing to leave primary responsibility for trus-
teaship matters in the hands of the Council and
have sought to emphasize the General Assembly
as the supervisory body, since in the latter they are
more likely to secure the requisite majority for
their proposals — a tactic which tends to nullify
the balanced principle of the Council. However,
this is a matter for consideration in connection
with charter review rather than for elaboration in
this article.

Members of the United Nations have under-
taken in the charter to promote the advancement
of the people of the trust territories toward self-
government or independence. The six trust
powers, which include the principal colonial
powers, freely accept self-government or inde-
pendence as the goal. The differences arise as to
the speed with which this goal should be attained.
And here the 12 members of the Council, as well
as the 60 members of the United Nations, fall
into two groups. One group argues for early,
if not immediate, liquidation of the whole colo-
nial system. They consequently seem to show less
interest in improving the system or in helping to
develop schools, roads, hospitals, etc., than in
emphasizing the establishment of native self-
governing institutions. Self-government, they
say, is always better than good government.

The other group, including the colonial and

716

Oepartment of Sfafe Bulletin

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(FEDERATION OF TERRITORIES)

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AFRICA

ADMINISTRATIVE DIVISIONS -1954

Colony,
Protectorate

Condo-
minium

Trust
Territory

Mandate

Other

U.K.

U.S.Afr.

France

Belgium

Portugal

Spam

Italy

C. -Colony

D.-Self-Governing Dominion
S.C.-Selt-Governing Colony
T.- Overseas Territory
De. -Overseas Department
P.-Protectorate
Tr.-Trust Territory
1. -Independent Country
C. & P.-Colony and Protectorate
0. P.-Overseas Province

WALVIS BAY
(U. Of S. Af.)

B E L G I AN
CONGO)
Leopoldville ^ Q

K,- Egypt

FRENCH
SOMALILAND

T>X VJ^ — ' p.

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E T H I O P I A
I.

P.

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KENYA

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Tr.

L A

FEDERATION OF
(N- RHODESIA)

Tr.

5PEMBA--7P.

TANGANYIKA ( 4 ZANZIBAR

Dar es SalaamjpZanzibar

COMOROS
IFr,)(J

SOUTH
Wlndhoel^

Lusaka •

AND_l

" Salisbury

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IS. RHODESIA)

. NYASALAND '

BECHUANALAND/

ing Mbaban^

UNION SWAZILAND^

P'Lourenco Marques

OF

BASUTOLANC

SOUTH AFRICA,

Mogadiscio

SEYCHELLES ISLANDS
AND PEPENDENriES
(U.K.) ■ ■
Victoria*"

MADAGASCAR

MAURITIUS
(U.K.). '.u.
Port Lo"i54>
Saint Denis;^[)g ^

REUNION
(Frl

1500

Statute Miles

500 1000

13282 5-54

trust powers but also many others, argues for or-
derly evolution of the colonial system. They con-
sequently tend to stress the economic, social, and
educational foundations for stable government
and point with pride and satisfaction to the build-
ing of roads, hydroelectric plants, hospitals,
schools, railways, harbors, and agricultural devel-
opments. The first group, however, finds it
difficult to express much appreciation or com-
mendation for these activities. Indeed, this group
usually opposes resolutions which would commend
the administering powers for such achievements
since, they say, this is no more than their normal
duty.

In this situation the position of the United
States, itself a trust power, is not an easy or en-
viable one. Instinctively, Americans dislike the
idea of any people being ruled by an alien au-
thority. We tend, therefore, to press for the at-
tainment of self-government without undue delay
yet with an appreciation of the necessity for build-
ing the requisite foundations lest a premature self-
government result in chaos or make the people an
easy prey for Communist imperialism.

The policy of the United States was clearly
stated by Secretary Dulles in his statement of
November 18, 1953,- when he summed up the posi-
tion as follows:

There is no slightest wavering in our conviction that
the orderly transition from colonial to self-governing
status should be carried resolutely to a completion.

This has been the guiding line of the United States
delegation in the Trusteeship Council, and each
problem confronting it has been viewed in the
light of this concept of orderly transition. This,
it will be seen, is a positive policy and does not
mean that the United States will merely take a
middle-of-the-road position on the basis of
expediency.

Highlights of the Session

It is in the light of this background that the full
significance of the principal highlights of the
thirteenth session of the Council may be seen.

Almost everyone is aware of the remarkably
rapid advances toward self-government which
have taken place in West Africa, particularly in
the Gold Coast and Nigeria. As these territories
border upon or are close to four trust territories,
and as two of these trust territories are adminis-
tered together with the neighboring colonies as
permitted by the trusteeship agreements, these de-
velopments are having a profound effect upon the
trust territories themselves. These will be more
fully discussed later in this article. The Council
also examined the conditions in two trust terri-
tories in East Africa — Ruanda-Urundi and Tan-
ganyika— where the situation, from the point of
view of political developments, is quite different
from that in West Africa.

= Bulletin of Nov. 30, 1953, p. 741.

The Council, of course, does not confine its ex-
amination solely to political developments but, as
is called for under the charter, concerns itself also
with economic, social, and educational advance-
ment of the inhabitants of trust territories. The
annual reports of the administering powers, often
running into hundreds of pages on these subjects,
are the basis for this examination. And it has be-
come customary to have a special representative
from the territory itself appear before the Council
to supply the latest supplementary data on all these
developments. In addition, the Council has a
disinterested rejiort from its own Visiting Mission
which visits each territory every 3 years. Each
individual member of the Council poses a number
of questions and after 2 or 3 days of this proce-
dure each, in turn, states the views of his delega-
tion as to the progress, or lack of it, made in each
territory.

Naturally one would not expect the administer-
ing or trust power to give a bad account of its own
stewardship. It will, however, often indicate
some of the more difficult problems with which the
territory is confronted and with which the ad-
ministration has been attempting to cope. Some
administering authorities, and the United States
is one of these, have invited members of the Coun-
cil to give them the benefit of any constructive or
helpful suggestions drawn from their experience
which might assist in the solution of such problems.

Certain members of the Council have been free
in offering suggestions. This is true of members
like India which, while standing in principle for
early liquidation of the whole system, has help-
fully drawn on its own experience in dealing with
such questions as illiteracy, malaria control, road-
building, etc. It is when the Council functions
in this way that its utility is most apparent. This
constructive approach has not been taken by the
Soviet delegation at this or at previous sessions
of the Council. Instead that delegation has con-
tinued to press its usual line of attack against the
trust powers, charging among other things that
they were continuing to exploit the inhabitants,
paying them low wages, paying low prices for
cocoa, rubber, coffee, and other exports, providing
insufficient educational and health facilities, and
generally keeping them in a backward condition
in order the better to control them. These Soviet
strictures have invariably followed the same pat-
tern throughout the Council's 13 sessions and have
been so obviously exaggerated as to lose most of
their effect, even upon the delegations who regard
themselves as vigorously anticolonial. Their ef-
fects, however, may be another matter in the terri-
tories, where uninformed opinion may give them
more credence than they deserve.

Among the newly elected members at the thir-
teenth session, besides India, were Syria and Haiti.
Both took an active part in the discussions, Syria
tending to be more sharply critical while Haiti,
though often trenchant in its criticism, tended

May 70, 1954

717

more often to offer constructive and helpful sug-
gestions on various economic and social problems.

One of the most laborious and difficult tasks
confronting each session of the Council is the
handling of the large number of petitions which,
under the charter, come directly to the Council
without any intervening action. Over 250 peti-
tions were laid before the Council at this session.
A special Standing Committee of six members —
three administering and three nonadministering —
spends weeks in attempting to classify these peti-
tions in the order of their urgency and importance,
and also on the basis of the nature of the com-
plaint, whether individual or general. In some
instances the written petition is supplemented,
if the Council agrees, with the grant of an oral
hearing to the petitioner. Sometimes a whole
tribe may raise tlie funds necessary to send one
of its number to New York to appear before the
Council. The right of petition, of course, is
regarded by most people as a sacred right. And
though no one wishes to abridge this right, the
problem of handling a flood of petitions which
emanate from all of the 11 trust territories is
requiring the Council's serious attention.

At this session three African petitioners from
British Togoland, in a most effective manner, pre-
sented the case for that territory becoming a part
of the Gold Coast. At previous sessions several
petitionere from the same region had appeared to
present the opposite case, namely, that the terri-
tory should not become a part of the Gold Coast
but should be unified with French Togoland, just
east of it. The convincing way in which these
petitioners presented their respective points of
view has shown many members how complex the
question is and how Impossible it is to apply any
doctrinaire solution.

Constitutional Changes in West Africa

As stated before, one of the principal subjects
discussed at this session was the effect which self-
government in the Gold Coast and Nigeria is hav-
ing upon the neighboring trust territories.

A glance at the map of West Africa will show
that the Trust Territory of British Togoland is a
narrow strip not over 100 miles wide which is con-
tiguous with the eastern border of the Gold Coast
and with which it has been administered since
1920. The Gold Coast now has an African Prime
Minister, Dr. Kwame Nkrumah, and its Cabinet
is African except for three members. It is ex-
pected that shortly the government will be com-
pletely African and that the territory will be gov-
erned as a unitary state. In 1953 the Gold Coast
Government declared its intention of requesting
the administering authority to grant it independ-
ent status within the British Commonwealth of
Nations.

British Togoland, it is quite generally conceded,
is too small an entity to maintain an independent

existence. It must almost certainly be associated
in some way with the Gold Coast or with French
Togoland. This has been obvious for some years.
But with the near realization of an independent
status for the Gold Coast the problem has become
one of urgency. Moreover, since the territory has
been administered as an integral part of the Gold
Coast and since the latter has already become vir-
tually self-governing, the British Government, as
the trust power, has necessarily become more and
more the indirect administrator. And this raises
the question whetl r the trusteeship agreement
must not either soo be terminated or in certain
respects revised.

The Trusteeship Council was informed that an
election for an all-African Legislative Assembly
for the two territories will be liold this May on
tlie basis of universal suffrage; the votere in Brit-
ish Togoland will have an opportunity to choose
between candidates standing for integration with
the Gold Coast and those favoring unification with
French Togoland. This election will not decide
the future status of the territor}', but it will un-
doubtedly give a clear indication of what the ma-
jority of the people want. It will, in the words
of the United States delegate, Mason Sears, "be
tantamount to the exercise of self-determination."

Turning to the Trust Territory of British
Cameroons, which is contiguous to Nigeria on the
cast, a similar situation exists. In Nigeria a new
constitution is being drawn up which will make of
that country a self-governing federated state in
the near future. It has been proposed that three
semi-autonomous regions will comprise Nigeria,
namely, the Northern Region, the Western Region,
and the Eastern Region. This raises the question
of the relationship of the Trust Territory of Brit-
ish Cameroons to the federated territory of Ni-
geria, with which it has been administered under
the trusteeship agreement. That is, would the
trust territory be associated with Nigeria as a
fourth region or in some other way? But the
problem was explained to the Council as being
even more complex. In the northern part of the
British Cameroons, the tribal relationships are
such as to bind the inhabitants closely with the
Northern Region. The Southern Cameroons,
however, constitute a more politically developed
people who have expressed a desire to be a sep-
arate region of Nigeria.

From the foregoing, it is clear that the im-
portant constitutional changes which are taking
place in these two British administered territories
confront the administering authority and the
Trusteeship Council with the necessity of taking
far-reaching decisions.

In the Cameroons under French administration
a different development is taking place. This
territory forms part of the French Union as an
"Associated Territory." The indigenous inhabi-
tants are citizens of the French Union and as such
enjoy the rights established by the French Con-

718

Department of State Bulletin

stitution of 1946. They may acquire French
nationality under certain conditions.

The question of the relationship between the
Cameroons and the French Union has been con-
stantly under review by the Council. Certain in-
digenous organizations have opposed what they
considered an assimilation of the territory to
French Overseas Territories as hampering its de-
velopment and removing any hope for independ-
ence. The administering authority, however, has
repeatedly stated that the territoi-y enjoyed a legal
status very different from that of neighboring
French territories and that the peoples of the
Cameroons would, upon the termination of the
trusteeship system, be free to achieve independence
outside the French Union if they so desired. The
Council expressed "confidence" that the territory's
relationship with the French Union will continue
to remain in accordance with the terms of the
trusteeship agreement and the provisions of the
charter.

Underlining the need for a greater sense of
"national consciousness" among the indigenous in-
habitants, the Council urged the administering
authority to introduce the single electoral college
system and to increase the African membership
of the Territorial Assembly. In this connection,
the Council noted that a bill which would extend
this Assembly's powers was pending before the
French Parliament and urged the administering
authority to have the bill enacted with the least
IDOSsible delay. The Council also expressed satis-
faction over various regional administrative re-
forms and endorsed further measures to democ-
ratize the traditional tribal institutions.

Conditions in East Africa

Wlien the Trusteeship Council turns its atten-
tion from the trust territories of West Africa to
those of East Africa, it takes a leap, as the French
representative said, not only in space but also in
time. Here conditions are vastly different. For
one thing, their contact with Western civilization
has been much more recent and as a result native
political development is much less advanced. In
both Ruanda-Urundi and Tanganyika the present
emphasis is upon the improvement of local govern-
ment, and attempts are being made by the two
Trust Powers, Belgimn and the United Kingdom,
to establish more representative local regional
comicils based upon tribal institutions and with
increasing authority in such matters as commu-
nications, markets, health services, and fiscal
powers. Very little African participation in the
central governments yet exists. And in both ter-
ritories, central government responsibility remains
almost entirely in the hands of the European gov-
ernors and their advisory councils. In these ad-
visory councils Africans are still in a minority,
but the Council was informed that both adminis-

trations hope progressively to increase the amount
of African participation.

An additional problem, particularly in Tan-
ganyika, results from the comparatively small but
very active European and Asian communities.
In that country there are about 8 million Africans,
18,000 Europeans, and 80,000 Asians, the latter
mostly of Indian and Pakistani origin. These
non- African communities naturally press for rep-
resentation in the government, and, since their cul-
tural and economic position is much more ad-
vanced, their representation tends to be out of
proportion to their numbers. This situation,
quite understandably, is one of the causes of inter-
racial friction. A major problem confronting the
administration is to harmonize the various racial
and language groups into a single nation and to
build up a common pattern of existence as Tan-
ganyika citizens rather than as three disparate
groups — Europeans, Asians, and Africans.

In its general conclusions, the Council noted
with satisfaction the harmony in the relationships
among these three main population groups.
However, it pointed to the possible dangers in-
herent in the lack of balance in their stages of
development. It invited the administering au-
thority to include in its future reports statistical
data indicating the number of male adults in paid
employment and their ratio to the total employ-
able male population. It recommended that the
administering authority take all possible measures
further to develop use of the Swahili language,
already extensively employed in the territory.

In general, the Council recalled the desirability
of establishing a common status of citizens of
Tanganyika and of subordinating communal
interests to those of the territory as a whole.

The Council expressed the hope that the reten-
tion of separate representation of the three popu-
lation groups on the Legislative Council, even
on an improved basis of parity among them,
would be regarded as a transitional measure and
that the administering authority would consider
instituting as soon as possible a common electoral
roll. It also expressed the hope that the African
membership of the Executive Council would be
increased.

Problems Referred by General Assembly

In addition to its examination of conditions in
the six African trust territories, the Council also
considered several resolutions of a general char-
acter which were referred to it by the General

Assembly. » , /-. i

The majority of the members of the General
Assembly have for several years complained that
the administering authorities were not planning
definitely enough for the attainment of self-
government or independence of the respective ter-
ritories under their charge. Accordingly, a
resolution was adopted asking the Trusteeship

May 10, 1954

719

Council to include in a separate section of its
report to the Assembly information as to tlie
estimated period of time -n-hicli would be required
in the case of each territory to attain self-govern-
ment or independence.

Such information, of course, cannot be provided
by the Trusteeship Council unless the administer-
ing authorities make it available. The adminis-
tering authorities in general assert that to set time
limits for the attainment of self-government or
independence is an impracticable if not impossible
idea, at least until a territory has very nearly
reached this goal. Several of the nonadminister-
ing members of the Council, however, especially
the Indian representative, argued that since the
General Assembly had made such a request, it was
incumbent upon the Council to abide by it, and
that for this purpose the administering authorities
were bound to supply the information, whether
or not they thought it was practicable to do so.
Speaking for the administering group, the repre-
sentative of New Zealand pointed out that there
was no question of the administering authorities
ignoring the resolution of the General Assembly ;
they were simply incapable of giving practical
effect to it. In the end, the Council adopted
unanimously, with one abstention, a modified reso-
lution stating that a section of the report to the
Assembly will include such information as the
Secretary-General can extract from existing data
which would throw light on this subject of fixing
"time limits."

Another Assembly resolution which was equally
controversial was a request that the Council give
further consideration to a proposal that qualified
indigenous inhabitants of trust territories be en-
abled to participate more fully in the work of the
Council. A number of members of the Assembly
and of the Council have held that the representa-
tives of the administering authorities cannot, in
the nature of things, fully represent the views and
feelings of the indigenous inhabitants, and that
there would be at least an educational value in
enabling certain of the indigenous inhabitants to
participate more actively in the work of the
Council.

The administering authorities have strongly op-
posed this idea in its more extreme form on the
ground that it is impossible to have "dual repre-
sentation"' in an international body and that, as
long as the administering authority is responsible
for the administration of a territory, it must be
recognized as the only channel through which the
territory can be represented. Certain administer-
ing authorities, including the United States, have
attempted to meet the sentiment of many of the
nonadministering members by attaching indigen-
ous persons to their delegations, both to the As-
sembly and to the Trusteeship Council. Mrs.
Dorothy Kabua, of the Trust Territory of the
Pacific Islands, was thus attached to the United
States delegation at a previous meeting of the

720

Council and was enabled to address the Council.^
Similarly, the French delegation at this session in-
cluded as special representative in its delegation
Georges Apedo Amah, a native of Lome, French
Togoland, who very effectively answered all ques-
tions put to him. The achninistering authorities
also pointed out that when visiting missions go to
the territories they are accessible to any of the
indigenous inhabitants who may wish to speak to
them or to convey written or oral messages through
them to the Council.

The Council, however, could not agree on this
subject, and a resolution brought forward by Syria
failed of adoption by a vote of 6 to 6. The Syrian
delegate announced that he would re-introduce the
whole question in the General Assembly.

Results of the Session

What, then, can be said of the results of the
thirteenth session of the Trusteeship Council?
Has the Council shown an increasing capacity to
function smoothly and effectively as an instru-
ment of supervision ? Has it gained in stature and
influence in the eyes of the public, of the terri-
torial governments, and of the indigenous inhabi-
tants?

To these questions it would be difficult to give
a categorically affirmative answer. It is probable
that most of the administering authorities do not
really feel tlie need of such supervision and, even
more, that they quite understandably resent any
express or implied efforts to make them appear
in the role of the suspicious character who needs
to be watched.

Nevertheless, the_y have come to accept the neces-
sity of satisfyiug world opinion as to their good
intentions. They realize that the colonial re-
lationship is not one which is held in high es-
teem. And if the deep resentments of the past
are sometimes expressed in sharp tones by mem-
bers who have only I'ecently gained their inde-
pendence, the administering members, as a rule,
accept these expressions in silence and dignity.
They give the impression of having a clear con-
science. They may regard many of the recommen-
dations with a certain disdain, but they do not
try to evade them. And it is probably too soon
to assess the benefits which may accrue to the in-
digenous inhabitants whose interests are described
by the charter as "paramount."

Perliaps the whole matter can best be summed
up in the somewhat facetious words of President
Munro in closing the Council when he said : "The
Council is a curiously constituted body, but taking
it by and large, although I have heard statements
that the Members are divided, I think it is a fairly
successful administrative union."

• Mr. Gerig, author of the above article., is
Director of the Office of Dependent Area Affairs.

' For text of her address, see ibid., Aug. 3, 1953, p. 151.

Department of State Bulletin

The United Nations Record of Accomplishment

hy Henry Cabot Lodge, Jr.

ZJ. S. Representative to the United Nations ^

Public opinion plays such a decisive and funda-
mental part in every large affair today and the
prospects ai'e that it will play such an increas-
ingly large part in the future, that it is an ex-
ceptional privilege for me to have tlus opportunity
to appear before you, the members of the Associ-
ated Press, who by any rational standard must be
ranked among the foremost opinion makers in
our country.

Membersliip in the Associated Press is a great
privilege which is eagerly sought after for the
honor and the power which it brings with it. But,
as you all know, it brings with it at least equivalent
responsibilities and these do tend to increase rather
than decrease as time goes on.

The position of our country in the field of for-
eign relations is squarely based on public opinion
as are all other activities of our Government.
Wlienever the conduct of foreign relations gets
separated from public opinion, the results are
uniformly disastrous. To the extent that the
state of public opinion is intelligent and realistic,
our foreign policies will be successful; to the ex-
tent that public opinion is in error, our foreign
policies will be in error. They cannot be discon-
nected— and that, of course, is where your re-
sponsibility as newspapermen directly affects our
foreign relations.

Today, let us examine what some basic American
attitudes are concerning foreign relations, and
then see whether we think these attitudes meet
the needs of our present situation.

As a people, we Americans like to solve prob-
lems, to overcome obstacles, and to build. It is a
national trait. We have been doing these things
ever since the foundation of our country and they
have become second nature with us. We do not
perhaps reflect much on the fact that all problems
cannot be solved and that all obstacles cannot be

overcome.

^ Addross made before the annual luncheon of the mem-
bers of the Associated Press, New York, N. Y., on Apr. 19
(U.S./U.N. press release 1905/A dated Apr. 16).

We have developed an attitude which to some
foreigners seems to be, like that of the busy execu-
tive who wants to get everything cleaned up in
time to catch the 5 : 15 train. To some of them,
Americans are like people who think of the world
as a potential tennis court in which all the tapes
are stapled down and all the edges neat.

The direct ojjposite of this attitude exists in
certain other parts of the world where many think
that the great problems cannot be solved — that
tJiey can never be solved and that the best thing
for sensible men to do is to roll with the punch,
duck your head when the missiles start flying and
generally follow the idea of "eat, drink and be
merry for tomorrow we die."

As between these two attitudes, there is no doubt
w hatever tliat we are more nearly right and they
are more nearly wrong. Of course, problems can
be solved. They ai-e being solved all the time in
one way or another. In fact some of them are
being solved in such a way that the solution creates
a lot of new and more difficult problems. But one
thing is certain : the world does not stand still.

Some problems in the past have been brutally
solved by war — witness the overthrow of the cen-
tral European monarchies in World War I, the
destruction of Fascism, Nazism, and Japanese im-
perialism in World War II. To be sure, these
events witnessed the rise of communism, which in
its turn brought immense new problems. These
pre changes which show that the world does not
stand still.

Another great change which all men of my age
have seen is the growth of nationalism all over
the world. It is one great world fact which in
most cases has been accompanied by fighting, some
of it on a small scale and some of it to a larger
degree.

Many changes have also come about in the world
through peaceful means. In fact, the whole face
of the world was changed by the discovery of
America which was made in rather primitive sail-
boats and has since been followed by steamships,
railroads, automobiles and airplanes in the field of

May 10, 7954

721

transportation, and by telegraphy, radio, motion
pictures, and television in the field of commimica-
tions, by medical science, by mass production and
by a whole range of other scientific developments.

These peaceful forces of science, commerce and
individual effort really do cause far-reaching in-
novations. Unhappily it is not often that a far-
reaching innovation is brought about in the world
exclusively by political and diplomatic means and
without fighting. The independence of India is
one of those unusual cases. In the last few weeks
an event of far-reaching propoitions was brought
about exclusively by political and diplomatic
means. This was the decision of Pakistan to be
counted with the free anti-Communist forces of
the world, and the decision of President Eisen-
hower to extend military aid to Pakistan. This
event and the recently signed agreement with Tur-
key, of which it is a part, can have a tremendously
stabilizing effect in one of the most crucial parts
of the world. It is a very real setback for Com-
nuinist imperialism and should give courage to
lovere of freedom in the Near and Middle East —
and all over the world. These are examples of
statesmanship with a capital S.

But it is not always possible to bring about such
basic changes in international relationships by
peaceful political and diplomatic means. We
Americans make a mistake if we expect too much
of the political and diplomatic tools which are
available to us. We should not have a sense of
failure because thei'e is no peace treaty to conclude
World War II in an orderly manner; or because
there is no peace treaty establishing permanent
relationships in Palestine; or because there is as
yet no peace treaty for Korea. We should not be
contemptuous of more modest solutions because
we overestimate the possibility of curing all the
world's ills in one fell swoop.

"Talk or Fight"

And we should not get imjjatient with proceed-
ings of the United Nations or other international
gatherings because they talk and do not reach
basic solutions of some international questions.
To many of these questions there is no basic solu-
tion under present conditions. In many of them,
the choice is: "talk or fight." The fact that the
talk may be boring or turgid or uninspiring should
not cause us to forget the fact that it is preferable
to war.

Now, the wars that don't happen are not dra-
matic. But there is real satisfaction in working in
a place where you feel that sometimes you have
helped prevent fighting and bloodshed even if it
requires some verbal toe dancing and walking on
eggs and what, to most of us, appears to be petti-
fogging. There are some circumstances in inter-
national affairs when the best thing to do is to stall
for time and give people a chance to cool off. This

often clears the way for diplomacy to exert a
moderating and conciliatory influence.

The United Nations has become an accepted in-
strument of last resort. A state need not feel it
has lost prestige by the reference of its problem to
the United Nations. Indeed, a state would lose
great prestige if it resisted the United Nations
playing its conciliatory role.

This process works even when fighting has al-
ready broken out — as in Indonesia, Palestine, and
Kashmir. The United Nations succeeded in stop-
ping these conflicts — any of which might have
engulfed larger areas, or have so disrupted the
countries involved as to open the door to commu-
nism.

In this respect the United Nations is not — and
should not be — a good news source. Wlien one of
the world's insoluble problems gets on page one it
is practically always because the news is bad. The
diplomat who temporizes may be boring and jour-
nalistically undesirable, but he is useful in prevent-
ing bloodshed.

We Americans are right in our belief that the
world changes and that human effort can make it
change — and can do it without fighting. The
fatalists are wrong when they think mankind is
doomed to being blown hither and yon like a cork
on the surface of the ocean. But we are wrong if
we expect international politics and diplomacy to
do much more than fend off the destructive effects
of science and invention — and human devilishness.

If a diplomat avoids a crisis, he is entitled to the
highest commendation. If, by his actions, he
avoids a war, he has really done all that a diplomat
is capable of doing and is entitled to the gratitude
of the nation. Let us not expect of diplomacy that
which it cannot accomplish. Without giving up
our optimism and idealism, which are precious
assets to the world, let us learn to live with those
things which obviously cannot be altered by peace-
ful diplomatic methods.

Let us be thankful that we have a place like the
United Nations where diplomatic activities can
take place which can avoid crises and can prevent
war. Let us not hold the United Nations respon-
sible for the fact that it has not been able to remake
the world and bring about the milleimium by a
stroke of the pen. After all, if a ]iowerful govern-
ment like the United States could not conceivably
remake the world, how can we expect an instrvi-
ment like the United Nations, which has no powers
of government, which cannot draft a single soldier
or impose a single tax, to do that which a powerful
government cannot do ?

U.S. Foreign Service Officer

Let us appreciate both the capabilities and the
limitations of diplomacy. We owe it to ourselves
and to our diplomats to appreciate the good work
which they do. I have been working with United
States career officers in the foreign field for a

722

Deparfmenf of State Bulletin

(year and 3 months and am glad of this oppor-
tunity before tliis influential audience to set down
the higli opinion wliich I liave of so many of the
men and women with whom I have worked and
who have spent their lives workinj^ for the United
States in tlie field of foreign relations. Tliere has
been so much publicity since "World War II about
a few rotten apples that we have lost sight of the
many excellent persons giving service that is not
only faithful but skillful in a high degree and
utterly indispensable to our survival as a nation.

We all owe a real debt to men like Robert Mur-
phy, who is Deputy Under Secretary of State;
David Key, the Assistant Secretary for United
Nations Affairs; Livingston Merchant, Assistant
Secretary for European Affairs ; Heni-y Byroade,
Assistant Secretary for Near Eastern, South
Asian and African Affairs; Douglas MacArthur
II, Counselor for the Department of State. There
are 40 career Ambassadors — people like George
Allen in India, Charles E. Bohlen in the Soviet
Union, Jefferson Caffery in Egypt, James Dunn
in Spain, Loy Henderson in Iran, John Cabot in
Sweden, James Eiddleberger in Yugoslavia,
Harold Tittmann in F'eru, and Fletcher Warren
in Venezuela — all of these oflBcers and othere like
them are rendering priceless service to their coun-
try in posts which call for the exercise of the most
exquisite judgment and which require a knowledge
of how to get things done in foreign countries
which is possessed by very few Americans. If
we did not have officials like them we would be
in very serious trouble. I wish we had more of
them, and I hope that young men and women of
similar quality from one end of our Nation to the
other will plan to make a career in the field of
foreign relations so that for the future of our
country we will have a supply of these indispensa-
ble public oiBcials.

The United Nations is one great factor in the
field of foreign relations which must have par-
ticular meaning for a newspaperman — and I speak
as one who still considers himself to be basically
a member of that profession. The powers of the
United Nations to take actions which are legally
binding are very few in number. They are limited
exclusively to the Security Council, where the
United States is completely protected by tlie right
of veto. The overwhelming majority of United
Nations actions are purely recommendatory. The
reason that they have such great weight is because
of the force of public opinion — in this case world
opinion.

And world public opinion, while it does not
react as rapidly as public opinion does in an Amer-
ican city or State or in the United States, is never-
theless a very real force.

It was world opinion which was so informed
and stimulated by the proceedings in the United
Nations in 1946 that the Soviet Union withdrew
the troops which they had in Northern Iran which
were a very real threat to the integrity of that
country and to the entire region, a region which is

May 10, J954

so highly strategic to the interests of our country —
as well as to the interests of the people who live
there.

It was the force of world opinion, which was
again stimulated by the United Nations, which
made our resistance to Communist aggression in
Korea considerably more than it would have been
if the United Nations had never existed.

Tlie contribution of the United Nations to our
resistance to Communist aggression in Koi-ea is
not limited to the fact that it added two divisions
which we would have otherwise had to supply our-
selves and which would have cost us $600 million a
year — and this figure, when compared to our con-
tributions of $13 million a year to the United Na-
tions proper, does not seem like a bad deal.

Tlie contribution of the United Nations to our
resistance to aggression in Korea is not limited to
the fact tliat the presence of those two divisions
meant that other young men risked becoming cas-
ualties wliich otherwise might have been the fate
of American boys.

Those are worthwhile contributions — and they
could have been even larger if mistaken policies
had not been followed in Washington in those
years — policies which required countries having
military manpower, but not having dollars, to
reimbui'se us in dollars for the supplies and equip-
ment which we provided. This deprived us of the
manpower which otherwise would have been avail-
able. It was a reversal of World War II policy.
It is a mistake, by the way, which will not be re-
peated in the future.

But these things, although of the first impor-
tance, are not all that the United Nations contrib-
uted to resisting aggression in Korea.

The fact that the United Nations condemned
Communist aggression at once made the whole
action one based on principle and not on Ajnerican
strategic self-preservation. This completely
foiled the Conununist propaganda line that action
in Korea was controlled by the power politics of
the Wall Sti'eet imperialists.

Another valuable result of United Nations in-
tervention whicli would also never have taken
place without the United Nations was due to the
fact that soldiers of so many races, religions, and
colors, including such widely separated nations as
Turkey, Ethiopia, Thailand, the Philippines, and
Colombia, among the total 16, were in the battle-
line. It thus became impossible for the Commu-
nists to maintain successfully that our action in
Korea was another example of the wliite man
trying to dominate colored people and reestablish
colonialism.

Iran and Korea are two illustrations of what
public opinion can do when it is rallied as it was
at the United Nations.

The United Nations serves many other useful
purposes in the field of public opinion.

It is, for one thing, a place where you can get
the feel of world opinion. On one occasion, Mr.
Vyshinsky, with upraised fist, turned to me and

723

said, "You Americans have lost Asia." I made
the obvious retort that we Americans weren't try-
ing to get Asia, that we did not regard Asia as a
mere pawn in tlie game of power politics ; that we
regarded Asians as human beings, to be treated
with the respect to which human beings are en-
titled. After I made this statement, representa-
tives of countries in tlie Far East told me that it
would make a hit with their editors and political
leaders and that it should be translated into the
appropriate languages and sent out over the Voice
of America. That is the type of reaction which
cannot be obtained in any other way and which
you as newspapermen will appreciate.

The United Nations is a forum which can l)e
used to refute lies. Many of you remember, I am
sure, the dramatic presentation which was made
by Dr. Charles Mayo last fall, showing in detail
the falsity of Communist charges that United
States soldiei-s had used germ warfare in Korea.^
Dr. Mayo's presentation made the front page both
at home and abroad over a ten-day period.

Chinese Communists Unfit for U.N. Membership

The United Nations is a forum in which to
develop the truth, however dreadful it may be,
about the Soviet Union. We aired the reports in
the United Nations about the Soviet treatment of
Germans, Japanese, and Italian World W^ar II
prisoners.^ Wlien an impartial commission,
headed by a distinguished Indian, made scientific
and objective findings about forced labor behind
the Iron Curtain, we used the world forum of the
United Nations as the place in whicli to bring them
before world opinion.^

The United Nations is a place to develop the
truth, however awful it may be, about the Chinese
Communists. We Jiave consistently stressed that
the Chinese Communist regime is unfit for repre-
sentation in the United Nations

— because it has repeatedly expressed open con-
tempt for the purposes and principles of the
United Nations, and the judgments of the inter-
national conununity ;

— because it stands convicted by the United Na-
tions as an aggressor in Korea where it killed and
wounded many thousands of American and other
soldiers who were defending peace ;

— because it continues to support aggi'ession in
Indochina, by giving substantial aid and by fur-
nishing advisers and technicians to the Viet Minh
forces ;

— because it occupied defenseless Tibet and
seized control of its government and resources;

— ^because it sponsors guerrilla and subversive
movements in Malaya, and throughout the rest
of Southeast Asia ;

' Bulletin of Nov. 9, 1953, p. 641.

'Ibid., Oct. 12, 1953, p. 497; Dee. 28, 1953, p. 898.

' Ibid., Dec. 21, 1953, p. 865.

724

— because it committed dreadful atrocities
against Americans and othei-s fighting for the
United Nations in Korea, and subjected pi-isoners
to physical and mental cruelty in seeking to extort
military secrets and confessions of alleged guilt;

— because it still holds 32 American civilians
under barbarous conditions without published
charges, and subjects these innocent missionaries,
journalists, and businessmen to cruel and inhuman
treatment ;

— ^because it wilfully fabricated and publicized
false evidence of spurious genn warfare charges
designed to blacken the reputation of the United
States, and otherwise carries on a deliberate "hate-
America" propaganda campaign ;

— because it has executed millions of its captive
subjects and forced other millions into slave labor;

— and because it even stoops to an international
extortion racket in squeezing millions of dollars M
from overseas Chinese who try to buy safety and ■
protection for their relatives at home.

The exposure of the terrible ways in which the
Chinese Conununists violate the normally accepted
standards of international conduct has so horrified
many decent people that this regime has never
even gotten a toehold on the threshold of the
United Nations. Since 1949, United Nations
bodies have refused over 150 times to seat the
Chinese Communists. I can promise you that the
United States will steadfastly resist all maneuvers
by the Chinese Communist regime and its advo-
cates to bribe its way into the United Nations on
mere promises of good behavior in the future. To
admit to the United Nations this regime which
believes in war as an instrument of national policy
would be the first time in its history that the
United Nations had deliberately decided to stul-
tify itself by flagrantly acting in contradiction of
its primary and oasic purpose to "save succeeding
genei-ations from the scourge of war."

The United Nations is a place in which the world
initiative can be seized. We lost that initiative —
or rather we threw it away — at the end of hostili-
ties of World AVar II. On December 8 last year,
President Eisenhower, speaking in the United Na-
tions, made his plea for an international stockpile
of fissionable material to be used for peaceful pur-
poses.'* As James Reston, the diplomatic expert
of the New York Times, said, "The President put
the Kremlin more on the defensive than at any
time since the war."

Most of us can remember a few short years back
when the Soviets held the indisputable initiative
in the cold war. Do you remember the so-called
"Stockholm Peace Appeal" — a fake petition device
of a kind which is familiar to every smalltown edi-
tor in this country but which deluded quite a few
of the gullible in other countries? Do you re-
member Picasso's Communist peace pigeon ?

<■ Ibid., Dec. 21, 1953, p. 847.

DeparfmenI of State Bulletin

Now it is ve who have taken the initiative and
it is our President who has made his statesmanlike
offer. It is accordingly they wlio stand before the
world as the warlike ones.

In conclusion, I have given you these few illus-
trations, believing that as newspapermen we can
appreciate the value of having a world forum.
The United Nations is the only real world forum.
If you have an idea which you want to get spread
around the world, the quickest way to get it spread
is through the United Nations. Next to the tall
building, you will .see a low rather sway-backed
building which to me resembles a loud speaker.
That is the General Assembly of the United Na-
tions, and if the architect intended it to resemble a

loud speaker he had the right idea. And I would
remind you that if we have not got the gumption
and the intelligence and the imagination to use
this loud speaker, it is our fault and not the fault
of the loud speaker.

All these outbreaks in Iran, in Israel, in India,
in Pakistan, in Korea and elsewhere would prob-
ably have mushroomed into World War III if
the United Nations had not existed, and if this had
happened, no one can estimate what the cost would
have been in money and blood. The I'nited Na-
tions, primitive and evolutionary though it is, has
a notable record of accomplishment — both as an
actual war preventative and as a forum in the cold
war. Let us work together to make it better.

U.S. Economic Policy Toward Underdeveloped Countries

Statements hy Preston Hotchhiss

U.S. Representative in the Econamic and Social Cowncil ^

and

ENCOURAGEMENT OF STABILITY

TT.S./U.N. press release 1895 dated April 7

"Aid — which we wish to curtail;
Investment — which we wish to encourage;
Convertibility — which we wish to facilitate;
Trade — which we wish to expand"

is the way in which President Eisenhower has
summarized his foreign economic policy .-

I feel confident that almost all of you agree with
each of the four points of this United States policy.
No country, I'm sure, likes to rely on assistance
from abroad. Most of you realize the benefits
which follow upon a free flow of private invest-
ment and a free exchange of currencies. Further-
more, I believe, all of you are eager to cooperate in
the removal of artificial barriers to the increase in
the peaceful trade of the world.

I welcome this opportunity to express my under-
standing of liow this policy of the United States
will assist the economic development of the less
developed countries. The United States has al-
ready demonstrated the vitality of its interest in
this development, not merely by words but by
deeds. Tliis is well attested by the scale and scope

'Made (in \\\v. 7 :uid !) in the Economic and Social
Council.

= RvLr.ETiN of Apr. 19. 1954, p. 607.

of our activities in the provision of both financial
and technical assistance to the underdeveloped
countries. You may have read in this morning's
press of our current request to Congi-ess to main-
tain our programs of development assistance and
to increase the programs of technical assistance to
underdeveloped areas. We must now move for-
^vard toward conditions in which such extraordi-
nary assistance is not required.

At this session, we liave the opportunity of con-
centra*:ing on a special group of problems related
10 the promotion of economic development. I be-
lieve our work will be facilitated and made more
useful if in our present discussions under agenda
item 3 we keep as closely as possible to the jirob-
lems listed under it. As we are all aware, there
will be full opportunity at the next session of the
Council to consider a number of other important
issues in this large field which are not scheduled
for consideration at the present time.

My own remarks will deal with issues i-aised by
the report of the group of experts on conunodity
trade and economic development^ and the chal-
lenging subject of the international flow of private
capital. The topic of land reform, which is also
listed under agenda item 3, I propose to leave to
committee consideration.

' U.N. doc. E/2519.

May 70, 1954

725

I address myself first to the report of tlie gi'oup
of experts on commodity trade and economic de-
velopment. The experts were required to inchide
in their report some consideration of the problem
of long-term changes in the relation between the
prices of primary conunodities and the prices of
manufactured articles. This is a subject which
has been much discussed both in the United Na-
tions and in other international fonuiis. The con-
clusions reached by the experts correspond to those
presented in the report on Measui'es for Interna-
tional Economic Stability which a different group
of experts, also appointed under a U.N. resolution,
submitted to this Council in 1951. These conclu-
sions are also similar to those my Government has
expressed on a number of occasions. Their es-
sence is this: It would be neither desirable nor
practicable to attempt to change the long-term
relationship of prices between primary commodi-
ties and manufactured goods which tends to be
established by the operation of competitive mar-
ket forces. The experts accordingly reject any
proposals designed to change artificially the long-
term course of price relationships between pri-
mary and manufactured commodities. I think
that their work in this field has been most useful
and realistic and I commend them for it. I should
like also to pay my tribute to the Secretariat for
the series of informative and germane studies pre-
sented under item 3 (b). These provide lielpful
factual and other data which supplement the
work of the experts on long-term international
price relationships but in no way disturb their
conclusions.

Price Instability in Primary Commodities

The experts direct their attention chiefly to the
problem of extreme short-term price fluctuations
within the long-term trend. Such price swings
present dilhculties for all countries, but especially
for those less developed countries which depend
mainly for their foreign exchange earnings on the
exports of only one or two primary commodities.
Wide fluctuations and uncertain foreign exchange
earnings may entail economic hardship and im-
pede the steady progress of economic development.

The problem of marked price instability in pri-
mary commodity markets is, therefore, one with
which my Government and all governments of
the free world must be greatly concerned. As to
the desirability of reducing this instalbility, there
can be no disagreement. The problem to be faced
is how this can be safely accomplished. Devices
that serve temporarily to reduce price fluctuations
must be judged by their potentialities for contrib-
uting to healthy economic gi-owth. They may re-
tard rather than promote such gi-owth if they in-
terfere with long-term price trends and introduce
rigidities and restraints that impair the elasticity
of economic adjustment which is fundamental to
economic progress.

This is a danger which must be faced in the
consideration of proposals for governmental com-
modity arrangements. This danger and the gi-eat
practical difficulties involved in reaching accord
on the details of any contemplated arrangement
largely explain why so few international agree-
ments involving consuming as well as producing
countries have hitherto been reached. The ex-
perts recognize this situation and see little pros-
]iect of any substantial increase in the number of
agreements. My delegation shares this view.

The experts also believe, however, that commod-
ity agreements, if properly drawn and operated,
may be an effective means for preventing excessive
price fluctuation. This they hope might be ob-
tained if the attempt were made to cover several
commodities in a single agi'eement, instead of re-
lying on the inevitably slow and uncertain increase
in single commodity agreements.

I must confess, Mr. President, that I find no
ground to justify this hope. The difficulties
experienced in negotiations relating to a single
commodity would in ni}' judgment be greatly mul-
tiplied if we attempted to deal with many commod-
ities at the same time. Moreover, any agreement
covering many commodities would involve wide-
spread interference with the workings of a free
world economy. It would magnify the danger of
diverting production, consumption, and trade pat-
terns from the channels they would be likely to
assume under a more healthy, competitive, and
free enterprise sy.stem. The net result of such ar-
rangements, even if it were practicable to conclude
them, would, I firmly believe, be detrimental and
not beneficial to economic development.

The experts extend their proposals for compre-
hensive commodity stabilization arrangements by
recommending for further study a "commodity re-
serve currency scheme." If this were an academic
seminar we might, Mr. President, find some inter-
est in discussing the complexities of this by no
means novel proposal. This, however, is not an
exercise in which I would care to engage in this
forum. I see no likelihood whatever that my Gov-
ernment would be disposed to give this scheme any
serious consideration in the foreseeable future.
I feel sure that other delegations will share my
view that the scheme is impractical. I hope there-
fore that the Council will not devote time and
energy which might well be spent in more useful
activities to detailed examination of a proposal
that would seem to have no chance whatever of
acceptance by govermnents.

The experts recommend — and this is their most
specific proposal — the establishment by the Coun-
cil of a "Trade Stabilization Commission." This
Commission would be concerned with proposals
for dealing with the problem of stabilization gen-
erally. It would leave undisturbed the existing
international machinery, such as the Interim Co-
ordinating Committee for International Commod-
ity Arrangements and its associated study groups,

726

Department of State Bulletin

which provide mainly for action, on commodity
by commodity. My delegation is unable to sup-
port this recommendation. The proposed commis-
sion would inevitably exercise the same general
responsibilities as the old Economic and Employ-
ment Commission of the Council and might be
expected to suffer from the same defects. The
establishment of a commission charged with re-
sponsibility for considering broad questions of
economic policy would simply invite duplication of
discussion, since these are questions which the
Council itself must necessarily debate.

With respect to the experts' suggestions relating
to the use of the fund's resources, I await with in-
terest the statement to be made by the representa-
tive of the fund. My Government, as this Council
has previously been assured, will be prepared, at
such time as it may appear necessary, to give
proper consideration to the matter of an increase
in the fund's resources.

While my delegation has been unable to accept
the views of the experts on a number of points, we
have found much in their report that is useful and
constructive. We welcome particularly their
warning as to the dangers of excessive concern with
international measures and their emphasis on the
need for the pursuit by national governments of
policies which contribute to stability. Underde-
veloped countries must avoid inflation and prevent
the dissipation in boom times of investment funds,
public revenues, and foreign-exchange earnings.
Industrial countries can play a major role by com-
bining steady economic growth with the mainte-
nance of high levels of employment.

We must then, Mr. President, try to deal with
this problem of excessive fluctuations by a realistic
combination of international and national meas-
ures.

Internationally, countries can contribute to
greater economic stability by collective efforts to-
v>'ard relaxation of trade and currency restrictions.
We can consult and cooperate to improve knowl-
edge of world supply and demand for materials
and foodstuffs.

The field for national action is broad.

The experts have emphasized, and rightly so,
the need for soimd fiscal, monetary, and invest-
m.ent policies. They have also properly stressed
the importance of formulating broad development
programs and developing the administrative re-
sources and the political consensus necessary for
their execution.

I might talk generally of what the industrial
countries can do to promote greater economic
stability. I feel it would be more useful, however,
if I indicate specifically what my own countiy is
doing.

One — the United States is participating in study
gi-oups on several basic commodities. Two — Pres-
ident Eisenhower, in his recent statement to the
Congress on foreign economic policy, recom-
mended specific measures for the relaxation or

May 10, 1954

removal of impediments to foreign trade. Three —
in the conduct of our stockpiling programs we
recognize an obligation to avoid actions which
would have disruptive effects upon world prices.
Four — in disposing of agricultural surpluses we
shall take special precautions to safeguard against
the substitution or displacement of normal com-
mercial marketing. Five — we are assisting the
economic development and diversification of un-
derdevi^loped countries through our financial and
technical assistance programs and through our
efforts to promote conditions favorable to an in-
creased flow of private investment, a matter with
which I shall deal shortly. Six — we are resolved
to maintain high levels of economic activity in
the United States. We all recognize the influence
of the economic conditions in the United States
upon world economic conditions. In his Economic
Keport for the Congi'ess, President Eisenhower
made it quite clear that the United States Govern-
ment is prepared to use its vast powers, as cir-
cimistances may require, to help maintain at home
employment and purchasing power as well as rea-
sonably stable prices. By so doing we shall be
making a major contribution to world economic
stability.

Mr. President, I have tried to make clear that
the United States not only recognizes fully the
importance and seriousness of the problem of ex-
cessive price instability, but is pursuing a con-
structive program for alleviating it.

Private International investment

I turn now to the international flow of private
capital. The benefits of private international in-
■vestment are so much a part of our lives that it
takes considerable effort to separate them out for
individual scrutiny. But this we must do, for ours
is the duty to see that the world is not prevented
by any lack of vision from enjoying those benefits
to the fullest.

To be sure those benefits have already been sub-
stantial. In the last 2 years something like $31/2
billion of private investments abroad have been
made by U.S. citizens alone. Perhaps, if the flow
from Northwestern Europe were added, the total
of private international investment in the last 2
years would be $5 billion.

But for me those global statistics tell the story
far less impressively than do some of the specific
investment histories with which I have become
familiar as a result of my government service,
particularly as a member of the Business Advisory
Council of the United States. Executives from
Dupont, from General Motors, from Standard of
New Jersey, and from many other leading firms
in the foreign investment field have served on the
Council while I have been there. These men have
told me of some of their development projects
abroad. Just recently one of them told me how
his firm had introduced a totally new and complex
industrial process in a South American country.

727

Within a few years direct employment was given
to 4,000 men and only 11 of these were from the
United States. Similar examples can be cited
around the world.

I have been told how, in the development of the
tremendous iron ore resources of Venezuela, in
itself a notable achievement, the United States
Steel Corporation is building a 90-mile railroad
from Cerro Bolivar to Puerto Ordaz on the Ori-
noco River. The latter river, too, througli inten-
sive dredging has become an important artery for
the supply of raw materials to world markets.
The impact of this single investment in terms of
employment of Venezuelan nationals, the provi-
sion of electrical facilities, housing, schools, and
medical facilities, quite apart from direct con-
tributions to the Venezuelan economy in the form
of taxes, is staggering.

The Firestone Tire and Rubber Company in-
vestment in Liberia is a classic example of foreign
capital investment wliich has contributed tremen-
dously to the economic strengtli, polit ical stability,
and social progress of an underdeveloped country.
The Firestone investment in Liberia, estimated at
$60 or $70 million, provides employment for about
15,000 Liberians and is a principal soui-ce of reve-
nue for the Liberian Government. The success
of tlie Firestone venture in Liberia and the good
relations consistently maintained with the Li-
berian (iovernment liave encouraged other invest-
ments in Ijiheria. jiarticularly in niiniiig. and
additional important investments in the future
may be confidently expected.

The immensity of these United States Steel and
Firestone investments sliould not lead us to ovei'-
look the contribution to economic development of
the hundreds of smaller investments being made
each year. For example, a relatively small invest-
ment, which may prove important to the country
in which it will be made, will follow from the
recent decision of one United States firm to install
a plant in the tropics for the manufacture and can-
ning of banana puree and banana flakes. The first
product will be sold primarily to manufacturers of
baby foods, the second is to be used for flavoring
purposes. The investment will make possible the
utilization of much substandard fruit which has
hitherto largely been wasted.

I could go on citing other cases. Many of you
could do likewise. Some of you imdoubtedly
know better than I the astounding story of the
growth of Sears Roebuck in Latin America, how
new standards of merchandising have been intro-
duced, how scores of new small industries have
been called into being. The examples I have
given illustrate the predominant form of invest-
ment today. It is direct investment in which the
flow of managerial and technical assistance is
often more important than the capital itself. The
so-called capital-exporting countries invest not
only their capital, but also their technicians, their
ideas, and their ideals.

Portfolio investment, as we knew it in the twen-
ties, when large sums were sent abroad, sometimes
rather recklessly, has now pretty much disap-
peared. Today, of course, we have the Interna-
tional Bank and national institutions such as our
Export-Import Bank where capital is combined
with technical assistance and careful analysis.
These institutions are helping to provide the un-
derdeveloped countries with basic facilities which
increase the opportunities for diversified private
investment. These institutions seek private part-
ners in their lending operations, and, to an increas-
ing degree, are turning for their funds to the
private jjortfolio markets. The investment cli-
mate abroad is thus of direct importance to the
investments of the public lending agencies. Gov-
ernment lending agencies could conceivably pro-
vide capital in the face of an imfriendly invest-
ment climate, but the sup])ly of such funds is never
likely to be large. Therefore, when we talk alx)ut
measures to stimulate the international flow of
capital we are talking about measures to influence
the individual decisions of potential private in-
vestors.

Impediments to Foreign Investment

Unfortunately, as we all know, these decisions
are adversely afl'ected by several general condi-
tions. The most important of these are the fear of
war and political instability. But, there are other
impediments more fully within the control of indi-
vidual governments. These include threats of
nationalization and expropriation, discriminatory
treatment of foreign companies, stringent controls
over the entry and operations of foreign investors,
and restrictions on the re^iatriation of earnings,
of capita] gains, and of capital itself. Removal of
these impediments is necessary if a satisfactory
climate for foreign investments is to be built.

I do not mean to imply, however, that if these
impediments were removed private investment
would flow automatically in fabulous volume. It
is sometimes assumed that there is a widespread
interest among business groups in the capital ex-
porting countries in investing abroad, and a strong
desire for overseas outlets for capital. Such an
assumption is open to serious question. The
American corporate or individual investor has
ample opportunity to invest his capital within his
own country, in an environment which he knows
and in which he has confidence. Corporate invest-
ment in the United States, for example, has aver-
aged around $38 billion animally during the past
4 years. The American corporation has a large
domestic market close at hand, and its overseas
interests may be confined to production in the
United States for export. Wlien it comes to in-
vesting abroad the corporation is likely to be in-
terested initially in the countries most familiar to
it which may be those which are closest geogi'aphi-
cally.

728

Department of State Bulletin

The problem of the underdeveloped country is
not to protect itself from the American investor
but rather to solicit his active interest — to demon-
strate that there are opportunities for profitable
investment and that reasonable efforts are being
made to meet his legitimate requirements as to
treatment. In short, there is a selling job to be
done by the capital importing countries in awaken-
ing interest, in dispelling ignorance, and in in-
spiring confidence. These countries should recog-
nize that when they seek private capital they enter
a highly competitive market, where they must
compete with other areas and the opportunities
they offer for profitable investment. The estab-
lislunent of conditions conducive to private invest-
ment is extremely important, but it must be sup-
plemented by active measures to attract capital —
and success should not be expected overnight.
This is not primarily a job for the governments of
capital exporting countries ; it can only be done by
1 1 lose countries seeking and needing foreign invest-
ment.

Private capital must be attracted. It cannot be
driven. A successfully operating enterj^rise is
hotter evidence of the actual investment climat«
than broad statements of policy or intent. This
emphasizes the importance of treating existing
enterprises in a fair and nondiscriminatory man-
ner, for the maltreatment of a single enterprise
can do much to deter the flow of capital — and the
effects often travel beyond the borders of the par-
ticular country involved.

We commend the steps taken in certain coun-
tries which indicate their realization of the im-
portance of the problem and the nature of the
job to be done. We in the more highly developed
countries are fully prepared to advise and assist
where appropriate, although nothing on our part
can substitute for the basic decisions and policies
of the capital importing countries.

U.S. Encouragement of Investment Abroad

In recent years the United States Government
has taken various steps to encourage investment
abroad by United States citizens :

The Government has sought to give wide circu-
lation to information on foreign investment oppor-
tunities. We publish investment opportunities in
the Foreign CommeTce Weekly and also dissemi-
nate siich information through the field ofhces of
the Department of Commerce and through cham-
bers of commerce and trade associations. Through
the contact clearinghouse system of the Foreign
Operations Administration we circulate invest-
ment opportunities to several thousand American
private individuals and firms. Our Department
of Commerce published an analysis of factors
affecting investment in some 26 countries. It is
now publishing studies on investment conditions
and outlook in selected countries. Such studies

have been published to date on India, Venezuela,
and Colombia.

The United States is actively pursuing a pro-
gram of negotiating treaties whicli have as one of
their objects the assurance of conditions favorable
to the investment of private foreign capital. At
the present time there are in effect 32 compre-
hensive treaties dealing with general economic
relations between the United States and individual
foreign countries. We are prepared to sit down
at any time with the representatives of a country
desiring to facilitate foreign investment for the
jjurpose of discussing the conclusion of such a
treaty.

Since 1948 the U.S. Government has had in
operation a program under which it is prepared
to offer guaranties against certain of the non-
business risks affecting investment abroad.
Limited at first to European countries, the pro-
gram has since been expanded and is now available
for new U.S. investment in any country which
concludes the necessary^ bilateral agreement with
the United States. Guaranties may be issued
against the risk of inability to convert local cur-
rency earnings into dollars and the risk of loss
from expropriation or nationalization. Outside
of Europe the only countries which have availed
themselves of this progi'ani are Israel, China, the
Philippines, Haiti, and Japan. Discussions of
the guaranty program have taken place with a
number of other countries, and again the United
States is prepared to discuss the application of
the program to any country which sincerely de-
sires to encourage the entry and operation of
American enterprise. The President has recently
recommended that this program be further ex-
panded to cover risks of war, revolution, and
insurrection.

To provide incentives for an increased flow of
private capital abroad. President Eisenhower has
recommended to the Congress a number of im-
portant changes in the United States tax laws
relating to the taxation of income from foreign
sources. Congressional hearings on these pro-
posals are beginning this very day. Included in
these recommendations is a proposal to tax busi-
ness income derived by United States corporations
from sources abroad at a rate equal to 14 percent-
age points less than the rate prevailing at the time
with respect to corporate income in the United
States.

For illustration, instead of the present tax rate
of 52 percent on corporate income, the rate ap-
plied to earnings from foreign operations would
be only 38 percent. At the same time, the long
established policy of gi-anting a tax credit for
certain taxes paid abroad would reduce the effec-
tive rate in most cases to something much less
than 38 percent.

These tax benefits would, generally speaking,
be made available to United States corporations
operating abroad either through a branch or

May JO, 1954

729

throiifrh a corporate entity of the foreign country,
as might be appropriate under local conditions.
When the operation is conducted through a for-
eign corporation, it is proposed in certain circum-
stances to permit the U.S. corporation to hold as
little as 10 percent of the stock of the operating
company and still obtain these tax benefits.

Another proposal of the President would recog-
nize, for tax credit purposes, the tax regimes of
countries which rely on taxes other than income
taxes as the principal source of revenue from a
particular business activity. This would reduce
the burden of the U.S. tax even further below the
level I mentioned earlier.

We believe that, unilaterally, the United States
is taking all steps it reasonably could through tax
incentives to induce its capital to seek outlets in
countries in which conditions are such as to offer
attractive and profitable uses for foreign capital.

Bilaterally, there are further steps the United
States is prepared to take. I refer to tax treaties
for the alleviation of double taxation. These
treaties are an integral pait of the United States
program to create a favorable tax climate for
international trade and business. As of today,
the United States is a party with foreign countries
to 15 treaties relating to income taxes, 10 treaties
relating to estate taxes and death duties, and one
treaty relating to tlie taxation of gifts. Income
and astate tax treaties with three other countries
are now in the closing stages of negotiations.

What I have said of the policies and program
of the U.S. Government is not intended to be self-
laudatory or inclusive, but to indicate the reasons
why we feel that the United States has gone a long
distance in pursuing measures designed to en-
courage the international flow of private capital.
For my part, I should like to hear more from the
representatives of the capital importing countries
with respect to the measures they have taken in
their common effort. How far have they gone in
examining their domestic laws and admmistra-
tive practices with a view to removing deterrents
to the flow of private capital? Have they gone
as far as they might in providing adequate assur-
ance through treaties or otherwise with respect
to the treatment of foreign investors ? Have they
developed adequate information services and
other means for informing potential investors of
business opportunities and of the relevant laws
and regulations governing foreign enterprise?
Have they enlisted participation of their own pri-
vate business interests in such activities?

The U.S. Government feels that there is con-
siderable room for further action by individual
governments along these lines. We stand ready
to advise and assist the governments of capital im-
porting countries where appropriate, but we can-
not provide the will to take the necessary measures
where it is lacking.

I come now to what the United Nations can do
to encourage private investment.

First, the United Nations can continue the kind
of work it has done in the two interesting and
valuable reports prepared by the Secretary-Gen-
eral pursuant to a previous Assembly resolution.
These are most useful and they ought to be
brought up to date from time to time, perhaps on
an annual basis. We should welcome periodic re-
ports providing information on the flow of private
capital and the progress made in the adoption of
measures to stimulate that flow.

Secondly, there is an important area of technical
advice and assistance which ought to be given
greater emphasis in the technical assistance activi-
ties of the United Nations and its specialised
agencies.

The United States suggests that member gov-
ernments give more consideration to including in
their requests for tecluiical assistance the follow-
ing kinds of services :

[a) Assistance in economic surveys of member
countries to determine the sectors most likely to be
of interest to private investors, and to identify
specific opportunities within those sectors.

{h) Advice on the preparation of material re-
garding specific projects in a manner which will
command the attention of private investors.

(c) Advice in the revision of legislation and ad-
ministrative practices affecting foreign invest-
ment.

{d) Advice in establishing channels for the
presentation of specific projects to potential in-
vestors in capital-exporting countries.

Finally, Mr. President, the United Nations can
affirm the importance of international private in-
vestment and can recommend measures to stimu-
late its flow. To this end, the United States will
join with other coimtries in introducing a resolu-
tion embodying these recommendations. The
adoption of this resolution* will further the ob-
jective to which most of us attach such great
importance.

REPLY TO SOVIET CHARGES

U.S. /U.N. press release 190O dated AprU 9

I was extremely interested to hear the scholarly
and factual presentation by my distinguished col-
league from Venezuela. Yesterday, you and the
members of this Council heard the representative
of the Soviet Union castigate the motives of the
United States and its people and charge our actions
in the underdeveloped countries are motivated
solely by the desire for selfish aggrandizement.
Listening to the Soviet representative, one would
assume that every American citizen who ventures

' E/2588-Resoliition B, p. 5, a resolntion to encourage
the international fiow of private capital for the economic
development of uiulerdevelopecl countries, sponsored by
Belgium, China, Pakistan, Tiirke.y. the United States, and
Venezuela, was adopted by the Council on Apr. 30 by a vote
of 15-2 (Czechoslovakia, U.S.S.R.)-! (Yugoslavia).

730

Department of State Bulletin

his capital overseas is a grasping monopolist, a
robber baron, snatching exorbitant profits, looting
the natural resources and enslaving the labor of
other countries. That was the essence of the
general charge.

Now, what were the specific charges. It is my
duty and my privilege to answer them, not with
emotion or countercharge with false statements,
but with plain simple truths of facts.

First, we were told that the United States is
forcing the underdeveloped countries to concen-
trate almost exclusively upon the production of
primary products for our industries. Second, we
were told that the United States deliberately
stands in the way of genuine economic develop-
ment by preventing the growth of industry in
these countries.

U.S. Encouragement of Foreign Industry

This we were told was the case in Latin America.
If the Soviet representative would take the trou-
ble to examine the Economic Survey of Latin
America for 1951-52 prepared by the United Na-
tions, he would find that an outstanding feature of
the economic history of Latin America since the
war has been the remarkable expansion in manu-
facturing. For example, in 1952, the output of
factories in Latin America was valued at almost
$111/^ billion, while the total output of agi-iculture
in Latin America in the same year was valued at
$8.3 billion.

Does that confirm the charge of the Soviet rep-
resentative that the United States is preventing or
discouraging manufacturing in the underdevel-
oped countries?

Again, he argued that if we were genuinely in-
terested in helping the underdeveloped countries,
that we should help them build steel mills. Well,
let's look at the record. That record is the pub-
lished reports of the U.S. Export-Import Bank.
It .shows that we made loans to help build steel
mills in Mexico, in Brazil, and in Chile. Loans
were also made for the construction of textile
plants in Brazil and Chile and Turkey, and also
for chemical plants in Mexico; for the mechaniza-
tion of rice production in Ecuador; for the con-
struction of cement plants in Saudi Arabia ; and
for the modernization of transport and communi-
cation in countries such as Chile, Brazil, Mexico,
Ethiopia, and Liberia, to give but a few examples.

In Brazil a new metallurgical indvistry has been
established through the introduction by an expert
of the United States Bureau of Mines of an im-
proved process for refining antimony from lead,
making this industry profitable for the first time.

In Cuba, as a result of the work of a technical
assistance mission from the United States, a whole
new industry has been started — using kenaf fiber
as the raw material for its products.

Does that support the charge of the Soviet rep-
resentative that the United States is preventing

fAay 10, 1954

or discouraging manufacturing in underdeveloped
countries ?

Now, let us examine for a moment the charge
that private U.S. investment is interested only in
extracting raw materials from the imderdeveloped
countries.

In Brazil, U.S. private investment has gone into
meatpaclring, assembly of automobiles, production
of automobile tires, chemicals, pharmaceuticals,
electrical supplies, and radios. U.S. investors,
jointly with Brazilian interests, are engaged in
the manufacture of rayon, rubber goods and elec-
tric light bulbs. In Chile, U.S. private invest-
ments are found in the manufacture of glass
products, automobile tires, synthetic textiles and
other products, most of which are consumed by
the local population. In Argentina, I happen to
know that the U.S. private investment is very
active in the manufacture of rayon and other syn-
thetic fibers.

In 1951, for example, direct investment by
United States citizens in Latin America amounted
to $441 million : half of this was invested in manu-
facturing industries.

In India, American Cyanamid Company, to-
gether with local Indian investors, recently estab-
lished a factory for the production of pharmaceu-
tical products as well as dyestuffs and sulfur.
Although the American company holds only 10
percent of the capital stock, it has made available
all its techniques and patents. It has also been
training Indian engineers to take over the opera-
tion of the plant.

In many instances, American firms manufactur-
ing complex machinery or equipment for sale in
underdeveloped areas have been moving the actual
manufacturing of parts into those coimtries. For
instance, International Harvester Company has
recently completed in Brazil a plant where the
most modern techniques of the manufacture of
parts for farm equipment, for tractors and trucks
are employed. It has built a similar plant in
Mexico. .

I could recite examples such as these indefinitely.
They are not in any way unique and are but indi-
cations of the many different ways the United
States and the private investor of the United
States are assisting in the diversification of the
economies through the world.

The Soviet representative charged that U.S.
private investment has not gone into activities
which benefit the underdeveloped countries. In
making the statement he completely overlooked
the fact that the entry of foreign capital is rig-
orously screened by the governments of most re-
cipient countries. It is only when the capital
importing country decides that a proposed invest-
ment would be of substantial benefit that the in-
vestment is permitted.

Referring to the charge made by the Soviet rep-
resentative that exorbitant profits are exacted by
U.S. investments in foreign countries, he quoted

731

the statement made by me that about $3.5 billion
was invested abroad by my country in the last 2
years. That is approximately one and three quar-
ters billion per year. He stated that we had made
a profit of $7.5 billion over the last 5 years. Now
that is an average profit of approximately $1.5
billion per year. The point he overlooked however
was that these profits were made on a total invest-
ment of $16 billion. This is a return of less than
10 percent.

In the second jjlace, he forgot to mention that
more than half of these profits were reinvested in
the countries in which they were earned. In each
year since the war, the foreign subsidiaries of U.S.
companies have increased the proportion of their
foreign earnings which they have retained abroad.
In 1952, this plowback of earnings was 62 percent.
In other words, for every dollar earned in 1952,
from United States direct investment abi-oad, 62
cents was put back to work to further develop the
economy of the country where the profit was
earned.

Let me give an example of how one U.S. investor
has plowed back its ]:)rofits for the further eco-
nomic development of the countries in which it
operates. Since opening its fiist store in Habana
in 1941, the Sears Roebuck Company has invested
over $28 million in 5 countries in Latin America.
With the exceptiton of one small dividend from
a Cuban subsidiary, every cent of profits earned
between 1941 and 1952 was reinvested in the coun-
tries in which they were earned to finance new
stores and new products.

I should like to mention another aspect of the
impact of U.S. private investment upon the econo-
mies of foreign countries. In 1950. U.S. direct
investments in all foreign countries contributed to
the foreign exchange receipts of the countries in
which they were located about $2.5 billion in dol-
lar exchange through exports of their jiroducts
to the United States. In addition, $400 million
of new direct investment — that is, new dollars, not
reinvested earnings — moved to foreign countries
in the same year. In other words, a total of almost
$3 billion in dollar exchange was made available
to foreign countries in 1950 directly through the
activities of U.S. private investors.

In that same year a total of about $1.2 billion
was transferred by private investors to the United
States. This left a margin of over $1.7 billion
available to foreign countries for the purchase of
capital goods, raw materials, and consumers goods.

This figure, of course, measures only the direct
dollar gain to foreign countries from United
States private investment. It does not take into
account the many indirect contributions to earn-
ing power and the economic development of these
countries made by such private investment.

The Soviet representative might also be inter-
ested to learn that U.S. investors paid foreign
taxes of more than 30 percent on their foreign

earnings, thereby making a substantial financial
contribution to the development plans of many
of these countries.

Wage Rates Paid by U.S. Firms

The Soviet representative stated that the wages
paid by American investors in foreign countries
are considerably lower than the wages paid to
U.S. employees in the same industry. I need only
say that this statement is quite meaningless. If
comparisons are to be made, they should be made
on the basis of wage rates paid by U.S. firms and
domestic firms in the same country. The high
wage rates paid by U.S. firms, both at home and
abroad, and the leadership taken by U.S. firms in
the improvement of working and living condi-
tions are so well known that I would not take the
further time of this Council by elaborating on this
point.

I was very interested to listen to my colleague
from Venezuela when by using the figures that
were cited by the Soviet representative mainly
that the wages in this country, in the United
States, were supposed to l)e five times what the
firms were paying in Venezuela for the same type
of work, and he stated the figures that would bring
the workers wage to $75 in one industry and $83
a day in another industry. I submit, Mr. Presi-
dent, that if that were true many or most of this
Council might find their way to Venezuela looking
for that kind of work.

Mr. President, the recitation of stale and dis-
credited propaganda slogans does not contribute
a thing to the underdeveloped countries. It does
not produce any goods or services. Wliat does
help produce the things the underdeveloped coun-
tries need is the kind of enlightened private in-
vestment I have cited. The United States is not
interested in words. We are interested in deeds,
in injecting the lifeblood of free economic develop-
ment into those areas. The accomplishments of
the past few years provide bright hopes for the
future toward a mutual effort in building a better
and freer world.

Termination of Proclamations

on Trade Agreement With Uruguay

White House press release dated April 30

The President on April 30 issued a proclama-
tion terminating as of December 28, 1953, two
Presidential proclamations dated November 10,

732

Department of Sfafe Bulletin

1942, and December 3, 1942, which proclaimed the
United States-Uruguayan Trade Agreement.

This followed termination by mutual consent
of the reciprocal trade agreement concluded be-
tween the United States and Uruguay in 1942.
The action was taken in view of the fact that
Uruguay on December 16, 1953, became a contract-
ing party to the General Agreement on Tariffs
and Trade to which the United States is also a
party. Pursuant to United States policy of su-
perseding existing bilateral agreements as coun-
tries parties thereto become contracting parties to
the General Agreement, steps for terminating the
bilateral agreement were taken while Urugiuiy was
negotiating for accession to the General Agree-
ment.

The termination of the 1942 proclamations,
which is effective as of December 28, 1953, results
in no changes in tariff rates.

Text of Proclamation >

Whereas, under the authority vested in him by section
350 (a) of the Tariff Act of 1930, as amended by the act
of June 12, 1934, entitled "An Act to amend the Tariff Act
of 1030" (48 Stat. 943), the time within which the Presi-
dent was authorized to enter into trade agreements pur-
suant to such amending act having been extended for three
years from .Tune 12, 1940, by the joint resolution of
Congress approved April 12, 1940 (54 Stat. 107), the
President of the United States entered into a ti'ade agree-
ment with the President of the Oriental Republic of
Uruguay on July 21, 1942 (56 Stat. 1626), and proclaimed
such trade agreement by proclamations of November 10,
1942 (.56 Stat. 1624), and December 3, 1942 (56 Stat.
1681) ;and

WnEREA-s, pursuant to an agreement reached by the
Government of the United States of America and the
Government of the Oriental Republic of Uruguay pro-
viding for the termination of the said trade agreement,
such trade agreement ceased to have effect on December
28, 1953 : and

Whereas, the said section 350 (a) of the Tariff Act of
1930 authorizes the President to terminate in whole or
in part any proclamation carrying out a trade agreement
entered into under such section :

Now, therefore, I, DWIGHT D. EISENHOWER, Presi-
dent of the United States of America, acting under and by
virtue of the authority vested in me by the Constitution
and the statutes, including the said section 350 (a) of
the Tariff Act of 1930, as amended, do proclaim that the
said proclamations, dated November 10, 1942. and Decem-
ber 3, 1942, are hereby terminated as of December 28, 19.53.

In witness whereof, I have hereunto set my hand
and caused the Seal of the United States of America to
be affixed.

Done at the city of Washington this 30th day of

April, in the year of our Lord nineteen hundred

Tseal] and fifty-four, and of the Independence of the

United States of America the one hundred and

seventy-eighth.

By the President :

Walter B. Smith

Acting Secretary of State.

' No. 3053 ; 19 Fed. Beg. 2583.
May 10, J954

Current Actions

MULTILATERAL

Commodities — Sugar

International sugar agreement. Done at London under
date of October 1, 19.53.

Ratifications deposited: Union of South Africa, March
8, 1954; U.S.S.R., March 22, 1954.

Germany

Agreement on German external debts. Signed at Lon-
don February 27, 1953. Entered into force September
16, 1953. TIAS 2792.
Accession deposited by Yugoslavia for: Trieste (Zone

B), March 31, 1954;
Extension by United Kingdom to : Channel Islands,

April 1, 1954.

International Court of Justice

Statute of International Court of Justice. Part of the
Charter of the United Nations signed at San Francisco
June 26, 1»15. 59 Stat. 1055; T.S. 993.

Party (pursuant to Gen. Assembly Res. 805 (VIII)
adopted December 9, 1953) : Japan, April 2, 1954.

Postal Matters

Universal postal convention, with final protocol, annex,
regulations of execution, and provisions regarding air-
mail and final protocol to the provisions regarding air-
mail. Signed at Brussels July 11, 1952. TIAS 2800.
Ratifications deposited: Overseas Territories of the
United Kingdom, Colonies, Protectorates and Trust
Territories, March 19, 1954 ; Union of South Africa,
March 24, 1954.

World Meteorological Organization

Convention of the World Meteorological Organization.

Done at Washington October 11, 1947. TL\S 2052.

Application to: Spanish territories of Guinea and Span-
ish Zone of Morocco (notification by Spain given
March 25, 1954).

BILATERAL
European Coal and Steel Community

Loan agreement. Signed at Washington April 23, 1954.
Entered into force April 23, 1954.

Japan

Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on
income, with a related exchange of notes. Signed at
Washington April 16, 1954. Enters into force upon
exchange of ratifications.

Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on
estates, inheritances and gifts. Signed at Washington
April 16, 1954. Enters into force upon exchange of
ratifications.

Netherlands

General agreement for technical cooi)eration for Surinam
and the Netherlands Antilles. Signed at The Hague
January 22, 19.54. Entered into force Ajiril 21, 19,54,
the date of receipt by the United States of approval
by the Netherlands.

733

Foreign Relations Volume
Deals With Far East

Press release 201 dated April 16

The Department of State released on April 24
Foreign Relations of the United States, 1936, Vol-
ume IV, The Far East. This volume is divided
into three main sections : The Far Eastern Crisis,
China, Japan. There is also a short section on
Siam (Thailand).

Reports on conditions in tlie Far East which
form a background for the later outbreak of war
comprise the major portion of this volume, both
in space and interest. Direct negotiations be-
tween the United States and Far Eastern govern-
ments in 1936 were of relatively minor iinportance
save for those connected with Japan's withdrawal
from the London Naval Conference which are not
covered by the present volume having been re-
corded in Foreign Relations, 1936, Volmne I, Gen-
eral, The British Commonwealth and Foreign
Relations, Japan, 1931-19Jil, Volume I.

While 1036 was a period of relative inactivity
in Japan's extension of power in China, American
diplomats were not lulled into any delusion that
Japanese aggressive aims were ended. Early in
the year reports of a possible Japanese proposed
nonaggression pact brought forth evaluations of
the situation. "There is no evidence locally that
the Japanese intended to abandon their plans to
achieve a portion of domination on the Asiatic
Continent, and particularly in China," tele-
graphed Ambassador Nelson T. Johnson from
Peiping on January 9. He stated: "The Japa-
nese are proceeding with their eyes open and have
thrown into the discard the League Covenant, the
Nine Power Treaty and the Kellogg Pact in order
to be free to carry out their policy." (pp. 5-6)
Ambassador Joseph C. Grew in a telegram of
January 9 expressed his view that the determina-
tion of the Japanese to dominate North China was
no less strong but that they visualized gaining this
end without military occupation, (p. 7) Am-
bassador Johnson commented further on January
15. (pp. 11-14) Referring to Italy, Germany,
and Japan he expressed his belief that "nothing
but force, economic or physical, seems to be ade-
quate to meet the kind of force which these powers
naturally believe in and are ready to use." (p. 13)
Ambassador Grew's more detailed observations
were given on February 7. (pp. 42-49) He ac-
cepted as a premise that in North China at least
nothing but defeat in war could prevent Japanese
control and also that the Japanese expansionist
movement would interfere progressively with
American rights. While he favored exploring
every avenue for a political agreement, he urged
as of primary importance the maintenance of an
adequate navy for the defense of American rights
and interests. This report concludes with a state-
ment of perhaps general application as well as to
the situation to which it was immediately applied :

734

We should not lose sight of the fact, deplorable but
true, that no practical and effective code of international
morality upon which tie world can rely has yet been dis-
covered, and that the standards of morality of one nation
in certain given circumstances have little or no relation
to the standards of another nation in other circumstances,
and little or no relation to the standards of the individuals
of the nations in question. To shape our foreign policy
on the tmsound theory that other nations are guided and
bound by our own present standards of international
ethics would be to court sure disaster, (pp. 48—19)

Ambassador Grew on April 30 submitted a re-
port on the two schools of thought in Japan re-
garding expansion, the "continental school" and
the "oceanic" or "blue water school." The latter
was favored by the navy. (pp. 129-134) He re-
ported "a marked recrudescence of opinion in
recent months favoring the southward expansion
theory." (p. 130)

In its review on July 3 of the first half of 1936
(pp. 231-236), the Embassy in China reported
"intensification of the resolve of Japanese military
to extend Japanese economic, military, and per-
haps political control in China." (p. 231)

Mr. Stanley K. Hornbeck, Chief of the Division
of Far Eastern Affairs, wrote in a memorandum
of August 8 (pp. 264-266) that "the Japanese
militarists have embarked ... on a course of
imperialistic expansion the principal instrument
of which is armed force." He spoke of a ring of
defense armaments but considered China, the
Philippines, and the Netherlands East Indies as
the weakest points in the ring. (p. 265)

The Embassy in China in its report of January
12, 1937 (pp. 453-458), expressed the opinion
that the events of the second half of 1936 had
strengthened China's position and even caused
"the Japanese, at least temporarily, to adopt a
decidedly less aggressive policy towards China."
(p. 453) I

Two dramatic incidents of especial significance, ~
one in Japan and one in China, are reported on at
length in this volume. The first was the outbreak
by an army group wlio on February 26 assassinated
a number of high Japanese officials, (pp. 719 ff.)
The second was the detention by force of Chiang
Kai-shek at Sian, December 12-25, to bring pres-
sure upon him for leading united Chinese resist-
ance to Japan, (pp. 414 ff.) It may be noted,
however, that both Ambassador Johnson and
Counselor Willys R. Peck had reported in October
that the Chinese Government and Chiang were
prepared to meet Japanese force with force, (pp.
358, 364) The Sian affair did, however, appar-
ently mark an important step in bringing about
a "common front." The Embassy described the
reported alliance between the mutineers and the
Communists as a "very regrettable aftermath of
the Sian coup." (p. 455)

Reports of special interest on Communist activi-
ties in China are those by Ambassador Johnson
on March 3 (pp. 68-72) and by Counselor Peck
on April 17 (pp. 112-113).

Department of State Bulletin

May 10, 1954

Index

Vol. XXX, No. 776

Africa. African Issues Before the Trusteeship Council's

13th Session (Gerig) 716

Agricaltare. Surplus Farm Commodities for Yugoslavia,

Norway 714

American Principles

Building a Cooperative Peace Through International Un-
derstanding (Eisenhower) 699

A Time of Great Decisions (Eisenhower) 702

The United Nations Record of Accomplishment (Lodge) . 721

Economic Affairs. U.S. Economic Policy Toward Under-
developed Countries (Hotchkls) 725

Far East. Foreign Relations Volume Deals With Far

East 734

International Organizations and Meetings. Ambassador

Dean To Confer With President Rhee 708

Israel. FOA Allotment for Israel 713

Italy. Italy To Buy Surplus Agricultural Goods . . . 714

Korea

Ambassador Dean To Confer With President Rhee . . . 708

Toward a Free Korea (Dulles) 704

Middle East. Facing Realities In the Arab-Israeli Dispute

(Byroade) 70S

Mutual Security

FOA Allotment for Israel 713

Italy To Buy Surplus Agricultural Goods 714

Surplus Farm Commodities for Yugoslavia, Norway . . 714
Turkey Gets $25 Million To Expand Food Output . . . 714
U.S. Economic Policy Toward Underdeveloped Countries

(Hotchkls) 725

Netherlands. Netherlands Refugee Problems Studied . . 714
Non-Self-Goveming Territories. African Issues Before the

Trusteeship Council's 13th Session (Gerig) . . . 716
Norway. Surplus Farm Commodities for Yugoslavia,

Norway 714

Presidential Documents. Termination of Proclamations on

Trade Agreement With Uruguay 732

Publications. Foreign Relations Volume Deals With Far

East 734

Refugees and Displaced Persons, Netherlands Refugee

Problems Studied 714

Treaty Information

Current Actions 733

Termination of Proclamations on Trade Agreement With

Uruguay (Elsenhower) 732

Turkey. Turkey Gets $25 Million To Expand Food

Output 714

United Nations

African Issues Before the Trusteeship Council's 13th Ses-
sion (Gerig) 716

Current U.N. Documents 715

The United Nations Record of Accomplishment (Lodge) . 721
U.S. Economic Policy Toward Underdeveloped Countries

(Hotchkls) 725

Uruguay. Termination of Proclamations on Trade Agree-
ment With Uruguay (Eisenhower) 732

U.S.S.R. U.S. Renews Protest in Case of Nikolai

Khokhlov (Dowling) 715

Yugoslavia. Surplus Farm Commodities for Yugoslavia,

Norway 714

Name Index

Byroade, Henry A 708

Dean, Arthur H 708

Dowling, Walter C 715

Dulles, Secretary 704, 708

Eisenhower, President 699, 702, 732

Gerig, Benjamin 716

Hotchkls, Preston 725

Khokhlov, Nikolai 715

Lodge, Henry Cabot, Jr 721

Rhee, Syngman 708

van Grevenstein, J. A. D. M 714

Check List of Department of State
Press Releases: April 26-May 2

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

Press release issued prior to April 26 which ap-
pears in this issue of the Bulletin is No. 201 of
April 16.

Subject

Military assistance to Iraq

Conant : Germany

Netherlands refugee study

American interests in Norway

Key ; Benefits from U.N.

Holland : Economic relations with
Latin America

Dulles : Geneva speech

Program for Massey visit

World Health delegation

Military assistance negotiations, Hon-
duras

Byroade : Arab-Israeli dispute

*Not printed.

fHeld for a later issue of the BULLEmN.

No.

Date

t213

4/26

t214

4/27

215

4/27

t216

4/27

t217

V28

t218

4/28

219

4/28

*220

4/30

t221

5/1

■j-222

4/30

223

5/1

U. S. GOVERNMENT PRINTINS OFFICI

THE BERLIN CONFERENCE

the
Department

A meeting of the Foreign Ministers of the United States,
France, the United Kingdom, and the Soviet Union, John
Foster Dulles, Georges Bidault, Anthony Eden, and Vya-
cheslav Molotov, took place in Berlin between January 25
and February 18, 1954. The major problem facing the
Berlin Conference was that of Germany. Two publications
released in March record discussions at the Conference. . . .

Our Policy for Germany

This 29-page pamphlet is based on statements made by
John Foster Dulles, Secretary of State, at the Berlin meet-
ing. It discusses the problem of German unity, Germany
and European security, and the significance of the Berlin
Conference.

Publication 5408

15 cents

of
state

Foreign Ministers Meeting — Berlin Discussions
January 25-February 18, 1954

This publication of the record of the Berlin discussions
of the four Foreign Ministers is unusual in that a substan-
tially verbatim record of a major international conference
is being made available to the public so soon after the close
of the Conference. Included in the record is the report on
the Conference by Secretary of State John Foster Dulles,
delivered over radio and television on February 24, 1954.

Publication 5399

70 cents

Order Form

To: Supt. of Documents
Govt. Printing Office
Washington 25, D.C.

Enclosed find:

(cash, check, or
money order).

Please send me copies of

Our Policy for Germany

Please send me copies of

Foreign Ministers Meefing — Berlin Discussions
January 2S-February ?8, 7954

Name

Street Address

City, Zone, and State

Vol. XXX, No. 777
May 17, 1954

VieN-r o^

THE ISSUES AT GENEVA • Address by Secretary Dulles . . 739

THE FOUNDATIONS OF A DEMOCRATIC FUTURE

FOR GERMANY • by James B. Conant 750

U.S. ECONOMIC RELATIONS WITH LATIN AMERI-
CA • by Assistant Secretary Holland 764

U.S. REJECTS SOVIET PROPOSALS FOR EUROPEAN

SECURITY 756

THE IMPORTANCE OF THE EUROPEAN DEFENSE

COMMUNITY TO THE FREE WORLD • by Ambas-
sador Henry Cabot Lodge, Jr 747

THE UNITED STATES AND CANADA AS NEIGHBORS

AND PARTNERS • by Vincent Massey, Governor General

of Canada '^62

For index see inside back cover

Boston Public Library
Superintendent of Documents

JUN151954

^Ae z^e/icL't^^^meTtt o^ t/late

bulletin

Vol. XXX, No. 777 • Publication 5465
May 17, 1954

For sale by the Superintendent of Documents

n. S. Government Printing Office

Washington 25, D. C.

Peicb:

52 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents

The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952),

Note: Contents o( this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Dep.vRiment
or Statk BuLLEiiN as the source will be
appreciated.

The Drparlment of State BVLLETIS,
a ireekly piihlicatton issued by the
Piihlic Services Division, provides the
piihllr and interested afieniies of
the Government with information on
developments in the field of foreign
relations and on the icork of the De-
jxirtmrnt of Stale and the Foreif-n
Service. The BULLETIN includes
selectetl press releases on foreign pol-
icy, issued by Ihe \t hite House and
the Department, and statements and
addresses made by the Presiilent nnil
by the Secretary of State and other
officers of the Department, as icell (is
special articles on various pluises of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements lo
which the United States is or nuiy
become a party and treaties of gen-
eral international interest.

Publications of the Department, <i.s
well as legislatii-e material in the fuld
of international relations, are lisleil
currently.

The Issues at Geneva

Addi'ess hy Secretary Dulles ^

I welcome this opportunity to talk with you

i about the Conference now going on in Geneva and

1 the related aspects of our foreign policy.

' First of all, I join with you in paying tribute

to the gallant defenders of Dien-Bien-Phu. May

it be given us to play a worthy part to defend

, the values for which they gave their lives.

j This week I returned from the Geneva Con-

' ference. My return was not connected with any

developments at the Conference. As long ago as

last February when the Conference was called, I

said I would attend only the opening sessions, and

then have my place taken by the Under Secretary

of State, General Bedell Smith. He is highly

qualified to head our delegation at Geneva.

Since the Conference may last for some weeks,
I did not feel able to stay with it that long. I
]i;ive been out of the United States during much
(if the last 6 months to attend the Bermuda Con-
ference, the Berlin Conference, the Caracas
Conference, and two Nato Council meetings in
Paris. These meetings strengthen the links with
our allies and enable us to present the position of
the United States to others. But the Secretary of
State must also keep in close touch with our own
people and with the Congress. In order to exer-
cise our full influence in foreign affairs, the Gov-
einment must have the understanding and support
of the American people for its policies.

The Geneva Conference has two tasks. The
iiist is to try to find a way to unify Korea. The
second task is to discuss the possibility of restor-
ing peace in Indochina.

The Soviet delegation, however, has sought to
use the Conference for other purposes. By vari-
ous devices, it has tried to create the false im-
pression that this meeting accepted Red China
as one of "five great powers" or conferred on it
a new international status.

Both of these issues had been fought out in
connection with calling the Conference and the
Soviets had then conceded that the Conference

' Deliverer! to the Nation over radio and television on
May 7 (pres.s release 238).

would not be a five-power aifair nor involve any
recognition for Red China. We and our allies
stood firmly and solidly on that position and the
Soviets ended by accepting it.

By the time I left Geneva, the Korean phase
of the Conference had been organized and was
well under way. I will speak first of that, and
then of Indochina where the fighting is still active
and where the question of possible United States
participation has to be considered.

For many years Korea has been the pawn of
great powers. Russia, Japan, and China have
abused and exploited Korea and kept its peoples
in servitude. The Koreans now want only to be
united and free and left alone. Yet, in fact,
Korea is divided, and North Korea lives under
the Chinese Communist yoke. In all decency it
would seem that the Communists should allow
the Korean people at long last to live their own
lives and to satisfy their aspirations for freedom.

When the Geneva Conference was organized,
the Communists put up their program for uniting
Korea. Unhappily it was not a program to sat-
isfy the desires of the Korean people for unity and
freedom. It was, as President Eisenhower said,
"a Chinese copy" of the Soviet scheme for the
unification of Germany. Their idea is to have
elections so set up that the Communists can dictate
the outcome and thus impose their rule upon the
whole country.

In tlie case of Germany, the Communists con-
trolled Eastern Germany, with about one-fourth
of the total German population. In the case of
Korea, they control about one-sixth of the total
Korean population. They insist, however, in both
cases, that this gives them the right to equal
participation in determining the election con-
ditions. Also, they stipulate that there must be
no impartial supervision or observation of the
elections to be sure that they are fair and free of
coercion.

The Communists feel confident that under these
conditions they can make their candidates seem to
win.

This scheme, when offered for Germany, was
turned down by the Federal Republic of Germany

May 17, 1954

739

News Conference Statement by the President

White House press release dated May 5

With the return of the Secretary of State from
Geneva, there will of course be a series of confer-
ences on foreign affairs both within the Executive
Department and between the Secretary of State and
bipartisan groups of the Congress. Because of these
forthcoming conferences and the probability that
the Secretary of State will himself have something
to say, and because, also, of the delicate nature of
the issues now pending before the Geneva Confer-
ence, I shall limit my comments on the Indochina
situation to a brief written statement.

United States foreign policy has consistently sup-
ported the principles on which was founded the
United Nations. A basic expression of this policy
was the Vandenberg llesolution of 1!)48. The United
States believes in assuring the peace and integrity
of nations through collective action and, in pursu-
ance of the United Nations principle, has entered
into regional security agreements with other na-
tions. Examples are the Inter-American Agreement,
the Nato Agreement, and a whole series of pacts
in the Pacitie. These arrangements are invariably
to assure the peaceful security of the contracting
nations and to prevent likelihood of attack; they
are not arrangements designed primarily for waging
war.

The Geneva Conference, now 9 days old. has pro-
duced no surprises. The expressed fears of some
have proved unfounded.

It has not been a "live-power" conference as the
Soviet Union tried to make it.

It has not involviKi establishing express or implied
diplomatic recognition by the United States of the
Chinese Communist aggrc.ssors.

The Korean phase of the Conference has been
organized. Here the Communists came up with a
scheme for Korean unilication which was a Chinese
copy of the Soviet scheme for the unification of Ger-
many. Under their proposal no election measures
could be taken without Communist consent, and
there could be no impartial supervision of the elec-
tion conditions or of the voting.

This scheme was rejected for Germany. Secre-
tary Dulles tells me that it is equally unacceptable
to the Republic of Korea and United Nations mem-
bers which took part in the Korean War under the
United Nations Command now represented at
Geneva.

The Indochina phase of the Conference is in proc-
ess of being organized and the issues have not yet
been clarified. In this matter a large measure of
initiative rests with the Governments of France,
Viet-Nam, Laos, and Cambodia, which are the coun-
tries most directly concerned.

Meanwhile plans are proceeding for the realiza-
tion of a Southeast Asia security arrangement.
This was publicly suggested by Secretary IiuUes in
his address of March 29.' Of course, our principal
allies were advised in advance. This proposal of the
Secretary of State was not a new one ; it was merely
reatfirmation of the principles that have consistently
guided our postwar foreign policy and a reminder
to interested Asian friends that the United States
was prepared to join with others in the application
of these principles to the threatened area. Most of
the free nations of tJie area and others directly con-
cerned have shown afiirmative interest, and conver-
sations are actively proceeding.

Obviously, it was never expected that this collec-
tive security arrangement would spring into exist-
ence overnight. There are too many imiwrtant
problems to be resolved. But there is a general
sense of urgency. The fact that such an organiza-
tion is in process of formation could have an im-
portant bearing upon what happens at Geneva
during the Indochina phase of the Conference.

The countries of the area are now thinking in con-
structive terms, which include the iudisijensable
concept of collective security. Progress in this
matter has been considerable and I am convinced
that further progress will continue to be made.

' Bulletin of Apr. 12, 1954, p. 539.

and by the three Western Powers at Berlin. The
same scheme is equally objectionable for Korea.

I can assure you that the United States delega-
tion will do all that lies within its power to pro-
mote, by peaceful means, the independence and
freedom and unity of Korea.

More than 140,000 Americans were killed or
wounded under the United Nations Command to
keep Korea from being overrun by armed invasion.
I promise you that we shall not surrender at the
council table at Geneva the freedom for which so
many fought and died.

We are pressing the Communists to accept
honest elections which will be supervised by re-
sponsible outside observers, who will assure a
really free election. Whether the Communists
accept that remains to be seen. If they would, then
I think that Korea could be unified.

Let me turn now to the problem of Southeast
Asia. In that great peninsula and the islands to
the south live nearly 200 million people in 7

states — Burma ; the three states of Indochina —
Laos, Cambodia, and Viet-Nam; Thailand;
Malaya; and Indonesia. Communist conquest of
this area would seriously imperil the free world
position in tlie Western Pacific. It would, among
other things, endanger the Philippines, Australia,
and New Zealand, with all of which the United
States lias mutual-security treaties. It would de-
prive Japan of important foreign markets and
sources of food and raw materials.

In Viet-Nam, one of the three Indochinese states,
war has been going on since 1946. When it began,
Indochina was a French colony just liberated from
Japanese occupation. The war started primarily
as a war for independence. What started as a civil
war has now been taken over by international com-
munism for its own purposes. Ho Chi-Minh, the
Communist leader in Viet-Nam, was trained in
Moscow and got his first revolutionary experience
in China.

In the name of nationalism, the Communists aim

740

Department of State Bulletin

to deprive the people of Viet-Nam of their inde-
pendence by subjecting them to the new imperial-
ism of the Soviet bloc.

Wliat is going on in Indochina is a perfect ex-
ample of the Soviet Communist strategy for
colonial and dependent areas which was laid down
by Lenin and Stalin many years ago and which
the Communists have practiced to take over much
of Asia.

The Indochina area was vidnerable. The Gov-
ernments of Viet-Nam, Laos, and Cambodia had
not yet received full political independence.
Their peoples weie not adequately organized to
fight against tlie L!ommunist-led rebels, and they
did not feel that they had a stake in the struggle
whicli justified great sacrifice.

President Eisenhower became familiar with the
problem wlien he was the Supreme Commander of
Nato in Europe. He liad seen tlie strain and the
drain whicli tlie Indochina war put upon France.
Ho was aware of the growing discontent in France
resulting from the long war where the French
were assuming the principal burden of the fight
and where human and material costs were mount-
ing.

I recall in December 10r)2 when General Eisen-
hower, as President-elect, was returning from his
Korean trij) on the cruiser Helena, we discussed
gravely the problem of Indochina.

We realized tliat if Viet-Nam fell into hostile
hands, and if tlie neighboring countries remained
weak and divided, then the Communists could
move on into all of Southeast Asia. For these
reasons, the Eisenhower administration from the
outset gave particular attention to the problem of
Southeast Asia.

Our efforts took two complementary lines. We
sought to strengthen the resistance to communism
in Indochina. We sought also to build in South-
east Asia a broader community of defense.

Indochina Measures

In Indochina itself, the following steps seemed
to us important :

1. The French should give greater reality to
their intention to grant full independence to Viet-
Nam, Laos, and Cambodia. This would take
away from the Communists their false claim to be
leading the fight for independence.

2. There should be greater reliance upon the
national armies who would be fighting in their
own homeland. This, we believed, could be done
if the peoples felt that they had a good cause for
which to fight and if better facilities for training
and equipment were provided for them.

3. There should be greater free-world assistance.
France was carrying on a struggle which was
overburdening her economic resources.

Much progress was made in each of these re-
spects. The French declaration of July 3, 1953,

pledged full independence to Viet-Nam, Laos,
and Cambodia. Already, a treaty of iiideiiend-
ence lias been concluded with Laos, and Emperor
Bao Dai told me, in Paris, 2 weeks ago, that
he felt tliat Viet-Nam was assured of its
independence.

On tlie military side, a 2-year plan was worked
out by General Navarre. It was designed to speed
the training of native forces.

The cost of this operation would be consider-
able. Tlie United States, which was already pay-
ing part of the cost of the war, agreed to bear
the greater part of the total cost. We are now
paying at the rate of about $800 million a year,
plus a very large provision of military equipment.

Despitethe gains on these fronts, there has been
a growing belief by the French people that France
was overextended, in view of its resjionsibilities
in Asia, in Africa, and in Europe. As a result,
when I met in Berlin last January and February
with the Foreign Ministers of France, Great Brit-
ain, and the Soviet Union, the French Govern-
ment asked that the projected conference on Korea
be expanded to discuss also the problem of peace
in Indochina.

Shortly after the Berlin Conference adjourned,
the Comniuuists. as was to be expected from them,
began to expend their military assets, human and
material, in a desperate effort to win some victory
which they would exploit for ])olitical purposes.
They concentrated on a mass assault against one
of the Frouch outposts — that of Dicn-Bicn-Phu.
That assault was pushed with a callous disregard
of human life.

Now, Dien-Bien-Phu has fallen. Its defense,
of 57 days and nights, will go down in history
as one of the most heroic of all time. The de-
fenders, composed of French and native forces,
inflicted staggering losses on the enemy. The
French soldiei-s showed that they have not lost
either the will or the skill to fight even under the
most adverse conditions. It shows that Viet-Nam
produces soldiers who have the qualities to enable
them to defend their country.

An epic battle has ended. But great causes
have, before now, been won out of lost battles.

The Cliinese Communists have been supjilying
the forces of Viet Minh rebels with munitions,
trucks, anti-aircraft guns, radar, and technical
equipment and technical advisers. They have,
however, stopped short of open intervention. In
this respect, thej' may have been deterred by the
warnings wliich the United States has given that
such intervention would lead to grave conse-
quences which might not be confined to Indochina.

Collective Defense

Tlirougliout this period the United States has
also followed the second course of trying to de-
velop strength in Southeast Asia through col-
lective measures.

742

Department ot Stale Bulletin

Back in 1951, 1 negotiated treaties with the Phil-
i])pines,- Australia, and New Zealand.^ These
rt'cofjnized tliat this area was one of vital im-
j)()rtance to the United States. These treaties
also recognized that they wei'e only initial steps
toward the development of a more comprehensive
system of collective security in the area.

This we have constantly sought. However, it
lias proved difficult to achieve this result. There
were differences of race and culture and differences
in the development of national self-government.
The countries which had won or were winning
their indejjendence from Western colonialism and
Japaiiese imperialism were often more concerned
with past dangei-s from which they were extri-
cating themselves than with the threat of new
peril. The memories of the past blinded them
to the present perils of Communist imperialism.
They were not disposed to make the sacrifices in-
herent in any collective security system.

However, this situation began to change and
by the spring of this year it seemed that there
could be a broader program of collective defense.

On March 29, 1954, after consultations with
Congressional leaders of both parties, and after
having advised our principal allies, I stated :
"The imposition on Southeast Asia of the political
system of Communist Russia and its Chinese Com-
munist ally, by whatever means, would be a grave
threat to the whole free community. The United
States feels that that possibility should not be
passively accepted but should be met by united
action." ^

This declaration was nothing new, although the
circumstances of the moment gave the words a
new significance.

President Eisenhower speaking almost a year
earlier, in his address of April 16, 1953, had said
that "aggression in Korea and in Southeast Asia
are threats to the whole free community to be met
by united action." °

After having explained our purposes to the
American people, we promptlj^ conferred with
the representatives of nine free nations having
innnediate interest in the area, namely, Viet-Nam,
Laos, Cambodia, Thailand, the Philippines, Aus-
tralia and New Zealand, France, and the United
Kingdom. We informed others whose interests
could be affected.

The Governments of the United Kingdom and
of France asked me to visit their capitals to de-
velop further our concept. After conferences at
London on April 12 and 13 with Sir Winston
Churchill and Mr. Eden, we issued a joint U.S.-
U.K. communique which, after reciting the danger
to the entire area of Southeast Asia and the West-

2 Bulletin of Aug. 27, 1951, p. 335 ; Sept. 10, 1951, p. 422.
'Ibid., .luly 2.S, 1951, p. 148; Sept. 24, 1951, p. 495.
• Ibid., Apr. 12, 19.54, p. 540.
^Ibid., Apr. 27, 1953, p. 601.

ern Pacific caused by Communist warfare in Indo-
china, concluded: "Accordingly we are ready to
take part, with the other countries principally
concerned, in an examination of the possibility of
establishing a collective defense, within the frame-
work of the Charter of the United Nations, to
assure the peace, security and freedom of South-
east Asia and the Western Pacific." ^

A similar agreement was reached in Paris with
Pi'ime Minister Laniel and Foreign Minister
Bidault.*^

The progress thus made was that which the
United States had sought. We had never sought
any sudden spectacular act such as an ultimatum
to Red China. Our goal was to develop a basic
unity of constructive purpose. We advanced to-
ward that goal. I feel confident that unity of
purpose persists, and that such a tragic event as
the fall of Dien-Bien-Phu will harden, not weaken,
our purpose to stay united.

The United States and other countries immedi-
ately concerned are giving careful consideration
to the establishment of a collective defense. Con-
versations are taking place among them. We
must agree as to who will take part in the united
defense effort, and what their commitments will
be.

It must be recognized that difficulties have been
encountered, but this was expected. The com-
plexity of the problem is great. As I have pointed
out, the complications were such that it was not
possible even to get started until recent months.
Under all the circumstances, I believe that good
progress is being made. I feel confident that the
outcome will be such that Communist aggression
will not be able to gain in Southeast Asia the
results it seeks.

This may involve serious commitments by us
all. But free peoples will never remain free un-
less they are willing to fight for their vital in-
terests. Furthermore, vital interests can no
longer be protected merely by local defense. The
key to successful defense and to the deterring of
attack is association for mutual defense. That is
what the United States seeks in Southeast Asia.

Current Hostilities in Viet-Nam

The question remains as to what we should do
about the current hostilities in Viet-Nam.

In Korea we showed that we were prepared
un.der proper conditions to resort to military ac-
tion, if necessary, to protect our vital intei'ests
and the principles upon which stable peace must
rest.

In Korea, we, along with others, joined in the
defense of an independent govermnent, which

'Ibid., Apr. 26, 1954, p. 623.

May 17, 1954

743

was already resisting an armed assault. We did
so at the request of the Republic of Korea and
under a United Nations mandate. The Korean
people were inspired by a deep sense of patriotism
and eager to develop a power of their own. The
issues were clarified before the world by decisions
of the United Nations. Under these circum-
stances, we and our allies fought until the enemy
sued for an armistice.

In Indochina, the situation is far more complex.
The present conditions there do not provide a
suitable basis for the United States to participate
with its armed forces.

The situation may perhaps be clarified as a re-
sult of the Geneva Conference. The French have
stated their desire for an armistice on honorable
terms and under proper safeguards. If they can
conclude a settlement on terms which do not en-
danger the freedom of the peoples of Viet-Nam,
this would be a real contribution to the cause of
peace in Southeast Asia. But we would be gravely
concerned if an armistice or cease-fire were reached
at Geneva which would provide a road to a Com-
munist takeover and further aggression. If this
occurs, or if hostilities continue, then the need
will be even more urgent to create the conditions
for united action in defense of the area.

In making commitments which might involve
the use of armed force, the Congress is a full
partner. Only the Congress can declare war.
President Eisenhower has repeatedly emphasized
that he would not take military action in Indo-
china without tlie support of Congress. Further-
more, he has made clear that he would not seek
that unless, in his opinion, there would be an
adequate collective effort based on genuine mu-
tuality of purpose in defending vital interests.

A great effort is being made by Communist
propaganda to portray it as something evil if
Asia joins with the nations of the Americas and
Europe to get assistance which will help the peo-
ples of Asia to secure their liberty. These Com-
munist nations have, in this connection, adopted
the slogan "Asia for the Asians."

The Japanese war lords adopted a similar
slogan when they sought to subject Asia to their
despotic rule. The similar tlieme of "Europe for
the Europeans" was adopted by Mr. Molotov at
the Berlin Conference when he proposed that the
Europeans should seek security by arrangements
which would send the United States back home.

Great despotic powers have always known that
they could impose their will and gain their con-
quests if the free nations stand apart and none
helps the other.

It should be observed that the Soviet Communist
aggression in Europe took place only against coun-
tries which had no collective security arrange-
ments. Since the organization of the North At-
lantic Treaty, there has been no successful aggres-
sion in Europe.

744

Of course, it is of the utmost importance that
the United States participation in creating collec-
tive security in Asia should be on a basis which
recognizes full}' the aspirations and cultures of the
Asian peojjles. We have a material and industrial
strength wliich they lack and wliicli is an essential
ingredient of security. Also they have cultural
and spiritual values of tlieir own wliich make them
our equals by every moral standard.

The United States, as the first colony of modem
histor}' to win independence for itself, instinctively
shares tlie aspirations for liberty of all dej^endent
and colonial peoples. We want to help, not hinder,
tlie sjiread of liberty.

We do not seek to perpetuate Western colonial-
i,sm and we find even more intolerable the new im-
l)erialist colonialism of communism.

That is the spirit that animates us. If we re-
main true to that spirit, we can face the future
with confidence that we shall be in harmony with
those moral forces which ultimately prevail.

U.S. Goals at Geneva Conference

Statement hy Under Secretary Smith '

I have been asked to give some first impressions
of tlie Geneva Conference, at which I arrived a
little more than a week ago. This beautiful set-
ting of lake, river, and mountains breathes an at-
mosphere of peace. In Geneva's streets, citizens
from scores of countries, speaking a dozen lan-
guages, pass each other without molestation, intent
upon their lawful occasions. Yet in the council
chambers of the Palais des Nations are present the
tensions of a divided world.

We Americans do not regard the people of any
country as our enemies. We believe that if
peoples throughout the world could make good
their deepest feelings, there would be an enduring
peace. It is in this spirit that I approach the
problems of our Conference.

We in America see clearly that our own future,
our own prospects of remaining at peace, are di-
rectly related to a basic principle — collective se-
curity. The experience of two world wars and
their aftermath, the existence of threats we can-
not ig^nore, have forced us to abandon our tradi-
tional aversion to military alliances.

At tnis Conference what we are confronted with
is not alone the restoration of a secure peace to
Korea and Indochina, for these are not isolated
or "local" problems, as some might regard them.
The significance of Korea and Indochina is world-
wide. Powerful forces are behind the complex
influences that make these two areas the focus of
potential war for aU of us, East and West.

* Issued at Geneva on May 9.

Department of State Bulletin

The United States, for its part, has no imperial-
i>tic designs; it seeks no special advantages for
its citizens. Since 19-i5 we have been devoting
stupendous sums to help rebuild many of the war-
ravaged countries of Europe and Asia. We
offered this aid to all countries in Europe. But
for mischievous misrepresentations of our motives
and a contrived climate of opinion hostile to our
national purposes, we might today have been
furnisliing to the peoples of the Soviet Union and
to China many of the implements of peaceful de-
velopment of which those vast countries stand so
much in need.

Should this Conference fail, it will be said that
international meetings of this scope are held
merely for purposes of propaganda, not really to
negotiate agreements or peace. As the United
States representative, the Secretary of State came
here, and I succeedecl him here, to help negotiate
an honorable peace on such terms as will promote
freedom throughout the world.

Let me make it clear, as President Eisenhower
has said : We are not attempting to tell other peo-
ples what form of government they shall choose.
We are asking, in association with our friends and
allies, that no governmental power shall be exer-
cised to threaten the peace of the world. We are
convinced there will be no war in the world if the
people themselves have the final word.

We stand prepared to pledge our resources to
the constructive purposes of peace. We shall be
compelled to build more alliances for defensive
security only if there is a continuing menace to
our national safety and to the safety of all the
nations whose interests are bound together with
ours in common objectives of peace and freedom.

These concepts have special relevance here in
Geneva, where the League of Xations began its
existence more than 3 decades ago, based upon the
premise that a threat to peace in one area can
disturb the peace of the whole world. That con-
cept was realistically reaffirmed and accepted at
San Francisco in 19'45, when the United Nations
was organized. That immense difficulties lie
ahead of us is apparent to all. But our goals
are clear.

We are here to establish a united, free, demo-
cratic, independent Korea. We are here to assist,
if we can, in the establishment of a durable, secure
peace for the Associated States of Viet-Nam,
Laos, and Cambodia. We are here to uphold the
authority of the United Nations to resist aggres-
sion. We are here to prevent the spread of com-
munism in Southeast Asia. We are here to bring
closer together the free nations of the world.

A will to negotiate in good faith and to keep
engagements once undertaken — these are the
essentials of a successful conference. On our side
we are prepared to do both, within the framework
of the principles of freedom that lie at the heart
of the traditions of our world.

Fall of Dien-Bien-Phu

Message From President Eisenhower to
President Coty

White House press release dated May 7

The following message from President Eiserty
hower to President Rene Coty of France was de-
livered on May 7 hy U.S. Amhassador C. Douglas
Dillon:

My dear President Cott : The entire free world
has been inspired by the heroism and stamina dis-
played by the gallant garrison at Dien Bien Phu.
Their devotion and the quality of their resistance
have been so great that that battle will forever
stand as a symbol of the free world's determina-
tion to resist dictatorial aggression and to sustain
its right of self-determination and its dedication
to the dignity of the human being. France has
in the past suffered temporary defeats, but always
she has triumphed in the end to continue as one
of the world's leaders in all things that tend to
bring greater richness to the lives of men. Those
who fought and died and suffered at Dien Bien
Phu should know that no sacrifice of theirs has
been in vain ; that the free world will remain faith-
ful to the causes for which they have so nobly
fought.

With expressions of my personal regard,

DWIGHT D. EISENH0^VEK

Message to Bao Dai

White House press release dated May 7

The folloioing message from the President to
Bao Dai., Chief of State of Viet-Nam, was trans-
mitted through the U.S. Embassy at Paris:

Your Majesty,

On behalf of the American people I should like to
express to you and the people of Viet-Nam our
admiration for the gallant men of the Vietnamese
forces who, together with their comrades of the
French Union, for two months so heroically de-
fended Dien Bien Phu against insuperable odds.
It is sad indeed that the fortress and its brave
defenders have fallen to the enemy, but we can be
heartened in the knowledge that their sacrifice
has not been in vain. Not only have they taken a
terrible toll of the enemy, but, I think more im-
portant, their heroic resistance to the evil forces of
Communist aggression has given inspiration to all
who support the cause of human freedom. Those
brave men made their sacrifice in order that indi-
vidual freedom and national independence for the
people of Viet-Nam should not be lost to Commu-
nist enslavement. AVe of the free world are deter-
mined to remain faithful to the causes for which
they have so nobly fought.
With expressions of my personal regard,

DwiGHT D. Eisenhower

May 17, 1954

745

U.S. Condemns Atrocity
by Viet IVIinh in Cambodia

Press release 22S dated May 4

FoUounng is an exchange of notes between Nong
Kimny, Ambassador of Cambodia, and Acting
Secretary Robert D. Murphy:

Text of Cambodian Note

Washington, April 20, 1954

The Ambassador of Cambodia presents his
compliments to His Excellency the Secretary of
State and, by order of his Government, has the
honor to transmit to him the text of the following
proclamation of the Royal Cambodian Govern-
ment :

"The Royal Cambodian Government reports to
the world a base crime that has just been com-
mitted by the Viet Minh in the territory of the
Kingdom.

"These are the facts: On Monday, April 12,
1954, at 7 a. m., a regular train carrying passen-
gers and freight left Phnom-Penh for Battam-
bang. At 11 a. m., the train struck some remote-
control mines between the stations of Romeas and
Kreang Skear, 80 kilometers from Phnom-Penh.
The locomotive was blocked and 40 cars were
overturned. Immediately thereafter, about five
hundred regular Viet Minh soldiers appeared
from the woods bordering the track and, with
knives, rifles, grenades, submachine guns, and ma-
chine guns, threw themselves on the overturned,
immobilized train. A regular massacre, executed
with unusual barbarity, was perpetrated.
"Wounded persons, trapped in the cars, cried out
for help. In reply, tliey were sprinkled with gaso-
line and burned alive, dying in unimaginable suf-
fering. Thirty cars were likewise sprinkled wjth
gasoline and burned. Passengers who attempted
to escape were pui-sued, caught, brought back to
the very scene of the carnage, and killed slowly
with axes and knives. The aged, children, women,
and even bonzes were, without exception, sub-
jected to this slaughter, stemming from the most
ignoble barbarity.

"None of the passengers had the fate of prison-
ers of war. More than a hundred passengers of
both sexes, including thirty bonzes and a Viet-
namese, perished thus, either in the flames or by
slow death from axes and knives. There were no
members of the armed forces on the train. Tliere
were no soldiei's, policemen, or members of any
[other] active forces.

"The tragic incident occurred on the eve of the
Cambodian New Year. It is customary on that
occasion for the inhabitants, ordinary private in-

dividuals, officials, or religious, to travel, often a
great distance, to join their families, in order to
perform their traditional rites together.

"Consequently, in attacking a regular train
carrying ordinary passengers and goods, from
which all military personnel were excluded, the
Viet Minh cannot claim that it was a military ac-
tion in retaliation or reprisal against the Cambo-
dian national forces. In committing their ignoble
crime on the eve of the Cambodian New Year, the
Viet Minh intentionally ignored, to serve their
cause, the rights, as well as the practices and cus-
toms of a free, peace-loving people.

"In view of these facts, the Royal Government
of Cambodia appeals to the conscience of the
civilized world to judge whether the crime related
above is indeed proof that the Viet Minh are fight-
ing for the 'liberation' and 'independence' of Cam-
bodia. Cambodia demands justice, that all tlie
acts of barbarity committed against it by the Viet
Miiili be solemnly condemned."

Tlie Ambassador of Cambodia avails himself of
the occasion of the present note to renew to His
Excellency the Secretary of State the assurances
of his very high consideration.

NoNO KiMNY

Text of U.S. Note

Washington, May 1, 1954

The Acting Secretary of State presents his com-
pliments to His Excellency the Ambassador of
Cambodia and has the honor to acknowledge re-
ceipt of his note of April 20, 1954, whicli contained
the text of a proclamation by the Royal Cambodian
Government describing a base crime wliich had
been coiiimitlod by the Viet Minh in the territory
of the Kingdom of Cambodia.

This santruinary atrocity, which occurred on
April 12 when the Viet Minh attacked a train in
Cambodia and murdered in cold blood and with-
out the slightest provocation more than one hun-
dred heli)less and peaceful passengers, is shocking
to the American people. The Acting Secretary
would appreciate the Ambassador's conveying to
tlie Foreign Minister his feeling of revulsion at
this senseless crime and his deep sympathy with
the bereaved families of the victims in their loss.

The Government of the United States has long
been aware of the moral depths to which the forces
of world Communism can descend. The frightful
massacre which has now taken place within the
boundaries of a peace-loving country is further
evidence, if any be needed, of Communist
depravity.

The Government of the United States solemnly
condemns the barbaric atrocity which has been
perpetrated against the peaceful Cambodian
people and expresses its sympathy to the families
of those who were so brutally murdered by tlie Viet
Minh.

746

Department of State Bulletin

The Importance of the European Defense Community to the Free World

hy Henry Cabot Lodge, Jr.

U.S. Representative to the United Nations ^

To me any Franco-American meeting is always
something special — something stimulating, inter-
esting, and valuable.

To Americans who think in terms of the arts,
of culture, and of graceful living, France is
eternally fascinating.

To Americans who think in terms of history, of
statesmanship, of strategy, France is eternally
important.

Both nations have such strong common interests
that it is odd to read in the papers, as we have
lately, of those who get discouraged about the situ-
ation. To those of us who have known France
for a long time it is never possible to get pessi-
mistic, and it is in that spirit, as one who has
known France for a long time and who does not
get pessimistic, that I speak to you today.

My own associations and memories go back to
school days before the First World War. As a
boy I played in the Champs ]5lysees. I saw the
annual wreath-laying ceremony at the base of the
statue of Strasbourg in the Place de la Concorde
and, inescapably, absorbed some of the spirit
which that moving event symbolized. I can re-
member well the strength and vigor of France.
In fact, there are events which occurred then
which are more vivid to me than many things
which happened last week. In particular, I re-
member the mobilization in 1914 when the drums
beat in every French village, when the farmers
brought their horses into the central market place
to turn them over to the Army and to be branded.
It was a drumbeat which marked the beginning
of 4 years of heroic fighting by the armies of
France — fighting which was in the interests of all
free peoples and which was of such bloody in-
tensity that it left its tragic imprint for genera-
tions.

So much has been said and written about the fall
of France in 1940 that the remarkable resurgence
of France and the heroic accomplishments of

' Address made before the France-America Society at
New York on Apr. 21 (U.S./U.N. press release 1908).

French resistance after that tragic date are some-
times overlooked.

It so happens that I was in the vicinity of Bir
Hacheim in the Libyan desert when General
Koenig and the Free French made their heroic
stand on the southern end of the British minefield
against General Rommel's attempt to come around
that important flank in the spring of 1942.

Later I was side by side with the French Expe-
ditionary Corps in Italy where it made such a
valiant record of vigorous ofl'ense.

In the summer of 1944 occurred the landing in
Southern France, and I went ashore with the
troops of the 9th Colonial Infantry Division
which, I believe, was the first French Division in
the Southern France operation to set foot on the
soil of France. The French troops liberated Tou-
lon and Marseilles and, with their American com-
rades in arms, advanced up the valley of the
Rhone — and the hospitable welcome which was
extended to us Americans by the people of France
at that time is something which will always live
in our memories. It was intensely memorable and
intensely touching.

That hospitable welcome was something unique
in my experience. So also was the strength of the
French Resistance Movement. It was so well or-
ganized all through that part of France that Ger-
man forces were in many large areas denied the
use of the roads. The French Resistance Move-
ment was a powerful ally to the armies which were
liberating Southern France.

Later these French forces grew. They grew into
the Army Detachment of the Alps under the com-
mand of General Doyen, which held the Franco-
Italian border.

There was also the Army Detachment of the At-
lantic under the command of General de Larminat,
which contained the German forces in the Atlantic
pockets and eventually destroyed them.

Then there was the First French Army com-
manded by that great Frenchman, Marshal de Lat-
tre — who was later to become my great friend —
which went from the beaches of Southern France

May 17, 1954

747

through the Vosges Mountains and into the heart
of Southern Germany and Austria. That mag-
nificent Army never failed to achieve its objective
and carried out every instruction wliich was given
to it in a splendid manner. And, of course, if
those French troops had not been there, we here
in the United States would have had to supply
them ourselves. On their slioulder patch were the
arms of the city of Colmar and the words, "Ehin-
Danube," and it was in that historic city that Mar-
shal de Lattre decorated me with tlie Legion
d'Honneur and Croix de Guerre with palm, the
insignia of which I am wearing here today and
which, for the whole of my life, are an honor of
unique significance and meaning to me.

Heroism at Dien-Bien-Phu

And now the world admires the heroism of
French fighting men at Dien-Bien-Phu who stand
squarely in the tradition of their older brothers
at Bir Hacheim and at Colmar and of the French
regular army. May God preserve them in safety !

Those days in World War II were very grim
and vei^y difficult even when compared with our
present state of uneasy peace. Because, even
though our present state is distracting and dis-
orderly and often causes us worries and brings
sad losses every day in Indochina, it is nonetheless
true that a state of honorable peace, however
imperfect and even though punctuated with
bloody actions like those which took place in
Korea and are now taking place in Indochina, is
better than all-out worldwide war.

In 1944 and 1945, on the other hand, when we
were engaged in an all-out war, the United States
Commander, General Devers, gave orders to the
French under his command and Marshal de Lattre
in turn gave orders to a large number of American
troops, and in both cases these orders involved loss
of life. Yet, in spite of this stark reality, our re-
lations were successful. I often think that, if the
Americans and the French could get along as well
together as they did in 1944 and 1945, when our
relationships involved the actual loss of so much
human life, tliat there could be no valid reason for
despairing of solving today's problems, difficult
and complicated though they are.

The French record since the end of World
War II is as remarkable as its record in its struggle
for liberation. We must never forget that we owe
primarily to Frenchmen credit for the political
initiative, vision, and statesmanship which have
gone into the creation of such novel and original
political and economic concepts as the European
Coal and Steel Community, the European Defense
Community, and the European Political Com-
munity.

Yet, in the face of this record in war and peace,
there are those in both countries who allow them-
selves to become unduly distressed by the utter-
ances of individual political figures in both coun-

tries who do not speak for their own country at
all. "Wliat a lack of sound judgment it is to allow
ourselves to be impressed by these unrepresenta-
tive and raucous voices ! To do so serves only the
Communists — which, of course, is why they call
so much attention to them.

It is from this background, beginning in boy-
hood, going all through my life, and including the
terrible days of war, that I am speaking today. It
is a background of close association with France
under difficult conditions. It is animated by the
affection one feels for men and women with whom
one has been thrown in good weather and in foul,
particularly at those times when the going was
rougli. There is something special and precious
about the affection one feels for persons whose
sufferings one knows and whose courage one ob-
serves and admires. With friends so close, failure
to be frank would be wrong. It is in that spirit
that I speak today — and on matters which affect
both our countries witli equal closeness.

It is in that spirit that I admit at the outset how
very difficult are the issues which France confronts
and how natural and proper it is for France to be
deliberate, to take her time, and to hear all sides of
the question.

The problem of Indochina is agonizing. We not
only salute the brave Fronclunen who have fallen
there; we thoroughly understand the vast impor-
tance of Indochina not only to France but to the
whole free world. The American people recognize
that the French Union Forces are fighting a mod-
ern Thermopylae — holding off the barbarian
hordes who seek to impress free people into
tyranny. The United states is detemiined —
working in conjunction with France, with Viet-
Nam, Laos, and Cambodia, and with other free
nations concerned — to help prevent the spread of
the Soviet and Chinese Communist system to
Southeast Asia.

In Europe the momentous decision concerning
the establishment of a common defense community
is approaching its culmination. The European
Defense Community was proposed by the Govern-
ment of France. I well remember being in Paris
in November 1950 and having Marshal de Lattre
outline to me the broad ideas which later became
the underlying concepts of the European Defense
Community.

Tliis proposal won and continues to hold wide
support in the United States and elsewhere.

U.S. -U.K. Support for Defense Community

Indeed, within the last week both the United
States and the United Kingdom Governments
have given the most specific evidence of that sup-
port, in the form of solemn assurances from both
governments that they will continue to maintain
in Europe such armed strength as may be neces-
sary and appropriate to contribute their fair
shares of the forces needed for the joint defense]

748

Department of Stale Bulletin

of the North Atlantic area while a threat to that
area exists.^ The two Governments have further
reaffirmed their undertaking to regard any action
from whatever quarter which threatens the in-
tegrity or the unity of the European Defense Com-
munity as a threat to their own security.

You have just seen President Eisenhower's pev-
sonal statement along this line. Thus, those in
Europe who have hesitated to support the concept
of the European Defense Community because of
lack of confidence in American and British sup-

Eort of the European Defense Community should
ave any last lingering doubts resolved.

Let me review for a moment what the European
Defense Community promises, and what might be
some of the effects of failure to put it into effective
operation.

It is a plan which makes it possible for Germany
to contribute to its own defense and to that of
Europe in a European rather than in a German
national framework.

It offers tlie prospect of a stable and effective
European military system which would permit a
practicable defense of central Europe, toward
which the United States and other non-European
powers could make appreciable contributions.

It thus holds out the hope of providing for the
North Atlantic Treaty Organization and the
broader Atlantic Community a foundation of
strength on the Continent of Europe.

It is a step toward a state of affairs which would
bring France and Germany into a system which
would at long last make them partners rather than
rivals and in which, therefore, France would no
longer need to fear an adversarial relationship
with Germany. This in itself is a development of
vast significance — in fact it is one the significance
of which could literally be measured in terms of
centuries.

People distinguished for their logic and their
realism can, we hope, see that Germans must par-
ticipate in the defense of Germany — that indeed it
would be unjust to France if German nonpartici-
pation caused France to carry an undue part of
the load of combat in the tragic event of any
future war. The European Defense Community
thus represents the best way of bringing about a
German defense contribution which is actually
indispensable.

The European Defense Community is a military
system, the control of which rests in the hands of
all its members.

Its establishment would provide effective means
to curb, not to incite, military adventures on the
part of any of its members if, as appears unlikely,
the will tor such adventures were somehow to
develop.

On the other hand, a failure to establish the
European Defense Community would be regarded
by the Soviet Union as a victory of epic propor-
tions for her diplomacy and propaganda. Mr.

' Bulletin of Apr. 26, 1954, p. 619.

Molotov's refusal at Berlin to take even the slight-
est step leading to a relaxation of tensions in
Europe leaves us no room for doubt that, if the
European Defense Community were to fail, the
Soviet Union would immediately press forward in
every way to achieve its other objectives.

These objectives would certainly include the iso-
lation of each nation of the free world from the
other.

After this had been accomplished the Soviet
Union would use its subversive tactics against each
nation separately having, of course, as the final
goal the destruction of all that nation's freedom.

The effectuation of the European Defense Com-
munity therefore would be a great step toward
defeating the primary Soviet objectives of divid-
ing the countries from each other and of thus
undermining the collective and individual security
of the free world.

The issues which France confronts today are
very difficult and no one who studies them can fail
to appreciate their magnitude. But they are the
kind of issues which a power wielding real in-
fluence in world affairs must meet. And Western
security efforts cannot possibly be successful if
France does not do so. The important role that
France is playing in international affairs today
is because in her noble history she has met great
issues and her friends not only wish and hope—
they are confident — that she will continue to do
so. The presence and influence of France are es-
sential to the formulation and support of the kind
of world for which we are striving.

We are now all traveling together along the
road of closer association and cooperation between
European countries, which the foresight of French
leaders opened up 4 or 5 years ago. We must con-
tinue on this road if Soviet aggression is to be
prevented and if a strong Europe is to be built.
For all these great goals France is indispensable.

I have discussed the significance of the European
Defense Community to France, to Europe, to the
North Atlantic Treaty Organization, and to Soviet
expansionism.

Close U.S.-French Relationship

Let me in closing ask you to look at it from the
standpoint of the United States relationship with
Europe seen in the light of history.

In our history the importance of France has
been manifested many times. It was first shown
when France helped us get our independence.
Then in this century we Americans have shown
by our actions — by the solemn fact that thousands
of our young men are buried in France in joint
defense of French soil — how important France is
to us.

In World War I and World War II, we arrived
in Europe after the trouble began. Now we are
there already. We have six divisions in Europe.

May 17, 1954

749

We are there of our own free will — because our
French friends wanted us to be there and also
because we believed it was in the interest of our
own security for us to be there. We want to stay
there, and, if conditions are such as to give us a
modicum of faith in the future, I believe we will
stay there as long as we are needed. And we
would do so, I think, for the good and sufficient
reason that we are convinced that, if the United
States had been in Europe in 1914 and 1939 and
if the war-lords of those eras had known for sure
that we would intervene, then neither the Kai-
ser nor Hitler would have ever begun their
aggressions.

Therefore we feel that the presence of the
United States in Europe now is a deterrent to any
would-be dictator or war-lord.

We point out the following utterly salient and
basic fact — that with us in the picture any poten-
tial German numerical superiority will be com-
pletely balanced.

But, of course, we can only be there as part of
a total European defense so intelligently organ-

ized that it would in the tragic event of war have
a reasonable chance of success.

The question of creating a European Defense
Community is, therefore, a question of the largest
moment for all of us. A\1iile we naturally under-
stand the emotions which it evokes we regard it as
utterly vital to the future of free peoples. We see
no acceptable alternative. For these reasons we
welcome the decision of the French Government to
hold the ratification debate in the immediate
future.

I say all this both as a friend of France and as
a man with 13 years of service in the United States
Senate behind him who took an active part in
1951 in the Senate debate on the sending of the
six United States divisions to Europe. These are
opinions based on long experience and oilered in
friendship.

They are offered in the unquestioning faith that
our two countries, which liave meant so much to
each other throughout history, will continue on-
ward together, animated by that belief in the
rights of man which has always bound them to-
gether.

The Foundations of a Democratic Future for Germany

hy James B. Conant

United States High Commissioner for Germany ^

I propose tonight to speak to you as a reporter,
though perhaps some of you would prefer that
I assume the role of prophet. For I have found
in private conversations in the last few days that
many people are more interested in what is going
to happen in Europe in the coming months than
in an analj^sis of the situation tliat now exists.
This is particularly true in regard to the plans for
the European Defense Community whose fate de-
pends on the vote of the French Assembly when
the ratification of the Edc treaty comes up for
debate next month. I have repeatedly said that
to my mind there is no practical alternative to
the Edc and therefore I believe the Edc treaty
would be ratified by all six nations. I repeat that
statement again ; but beyond that, I intend to re-
sist the temptation to indulge in a prophecy to-
night. Years ago when I was a chemistry pro-
fessor I learned a lesson in this regard. Like
many teachers of chemistry in college, I used to

' Address made before the Association of the Bar of the
City of New York at New York, N. Y., on Apr. 28 (press
release 214 dated Apr. 27).

750

employ the device of lecture-table experiments
often involving explosions to keep my class awake.
However the experiments were not always suc-
cessful ; the predicted explosions sometimes failed
to occur. After one such fiasco, an elderly gentle-
man in the audience who was there as a listener
came up after the lecture and offered the following
advice : Young man, it is always better to speak
after the event as an historian rather than before
the event as a prophet. Following this sound pre-
cept, I propose to place my remarks about Ger-
many in an historical framework this evening.

I can do this the more readily because it so
happens that as a yoimg chemist I was in Germany
for 8 months 7 years after the end of World War
I. As United States High Commissioner for Ger-
many, I once again entered that country 7 years
after the end of another world war. Therefore, in
the past 12 months or more there have constantly
come to my mind comparisons between what I saw
and heard in Germany in 1925 and what I have
seen and heard in the past year. As a young pro-

Department of Stafe Bullefin

fessor of chemistry, I traveled widely in 1925 visit-
ing the various universities, but my conversations
with my contemporaries were by no means confined
to technical subjects. For those were days of con-
siderable political excitement in the Weimar Re-
public. The first President, Friedrich Ebert, had
]ust died and the electoral campaign to choose his
successor was in full swing. I discussed with my
acquaintances quite frankly the past, present, and
future of Germany and Europe. In the course of
such informal discussions in the pleasant quarters
of a Weinstuhe or Bierhalle I received a fairly
accurate impression of what the people of Ger-
many were thinking in 1925. I have tried to repeat
tliis experience by making rather extensive trips
throughout Germany as United States High Com-
missioner, including many off-the-record discus-
sions with small groups. In addition there are
other ways of assessing public opinion, by indirec-
tion so to speak, and we have an excellent staff not
only in Bonn but in the consulates scattered
throughout Germany. Therefore I think that the
comparisons I shall make between Germany in
1925 and Germany in 1954 are based on fairly
reliable information.

First of all I am tempted to compare the attitude
of the citizens of the German Federal Republic
today toward their Government with the reactions
of the citizens of the Weimar Republic to the
dem.ocratic institutions of that time. And the dif-
ference is very great. In 1925 a considerable pro-
portion of those people with whom I talked were
either indifferent to or hostile to the principles on
which the Weimar Republic was founded. It was
not a question of being members of the opposition
party, not a matter of party politics, but a question
of fundamental loyalty to the then newly estab-
lished republican institutions. It seemed to me at
that time that the new governmental structure of
Germany had not won the loyal support of many
influential sections of the German people. This
was in part because of the failure of the Western
democracies to give encouragement and support
to those elements in Germany which were trying
to build a democratic government. These demo-
cratic elements were opposed by German conserva-
t i ve and reactionary forces who had never accepted
tlie military defeat of World War I as final and
who therefore refused to break with the imperial-
istic past. Practically from the beginning of the
Weimar Republic, the official German government
found itself competing for popular support with
an opposition which was a shadow system con-
sisting of antidemocratic elements whose purpose
was to achieve a nationalistic restoration and who
were unscrupulous in the choice of their means.
Those who had created the new constitution were
rarely in full political control of the Weimar Re-
public and partly for this reason failed to educate
the people and, above all, the youth to accept and
support the democratic system of government. I
think I am not simply writing history backward

when I say that I came away fi'om Germany at
that time with a feeling of a lack of confidence in
tlie ability of the Weimar Republic to weather any
storms that might be ahead. And after a quick
trip to Germany in 1930 when the shadow of
Hitler was already on the wall, I returned in a
mood of pessimism about the future of the German
nation.

Today the situation is quite otherwise. I am
referring to something deeper and more signifi-
cant than the fact that the electorate returned
Chancellor Adenauer's own party to the lower
house of the Federal legislature with a majority
and his coalition with a two-thirds majority.
This result of last September's election is of ma-
jor importance in assessing Germany today and
was a tribute to the effective leadership of Chan-
cellor Adenauer and the work of his Cabinet
during the first 4 years of the existence of the
Federal Republic. But what is even more sig-
nificant is the fundamental attachment of the
German people irrespective of party to a federal-
ized republican form of government based on
democratic principles ; one manifestation was the
failure of either right radical parties or the Com-
munists to place a single member in the Bundes-
tag. The German people appear to have broken
with their undemocratic past. Conservative and
liberal elements have jointly created a democratic
constitution and all parties are loyally suppoi-ting
the new political system. Such opposition as
exists today is not directed against the principles
and structure of the new Republic but against
certain policies of the Government.

Germany Looks Toward the Future

A second major difference between 1925 and
1954 is the attitude of the Germans toward the
immediate past and their hopes for the future.
Seven years after the end of World War I one
could hardly discuss any political problem in
Germany without becoming involved in an end-
less debate about the origins of the world war,
who had in fact won it or lost it, and the role of
the founders of the Weimar Republic in the dis-
turbances which followed on the heels of the
armistice in November 1918. The stab in the back
legend about the Libei'als and the Socialists con-
fronted one at every turn. Indeed, this deep con-
cern with the immediate past led many Germans
to distrust the Weimar Republic and to hate the
democratic and socialist parties. Today, one very
rarely hears any discussions of the events of 1933
to 1945. I won't say that there may not be groups
of former Nazis here and there who look back with
nostalgia and possibly with satisfaction to the
days when they were in power, but the results of
the last election show that the overwhelming
majority of the German people are now repudi-
ating the extremists of both the right and of the
left. In fact the leaders of the major parties in

May 17, 1954

751

the coalition as well as of the Social Democrats
(the opposition) are men who do not hesitate in
their public speeches to condemn the Nazi regime
and the internal as well as the foreign policy of
Hitler.

But in general, the eyes of the Germans today
are focused not on the past but on the future ; and
this future they envisage as something different
from anything in their past. If one defines a

E regressive as a man who looks toward a new and
etter future and a reactionary as one who looks
longingly to the past, then I think it would be fair
to say that the prevailing attitude in the German
Federal Republic today is a progressive attitude.
Certainly tliere are few reactionaries who are long-
ing to turn back tlie clock of history.

Wlien I first arrived in Germany early in 1953,
I was amazed to find how widely the plans for
European integration were being discussed and
with what degree of confidence the German lead-
ers looked forward to the development of a new
Europe. To be sure, the spokesmen for the Social
Democratic Party, the opposition party, oppose
the formation of a European Defense Comnumity,
but being democratic and oriented toward the
West, even they have their plans for close mili-
tary and economic cooperation between a large
group of Western European nations.

The city of Passau last summer arranged a festi-
val of which the main theme was the development
of a European community of nations. Anyone
who had suggested an assembly to talk about
European integration in 1925 would surely have
been declared a visionary fanatic. It may be that
the German enthusiasm for the ideal of a united
Europe is somewhat less today than it was 18
months ago ; the slowness with which the ratifica-
tion of the Ei)c treaty has proceeded has had a
somewhat chilling effect on the enthusiasm of some
of the most European-minded leaders of German
opinion. It is also true, and in view of the un-
precedented character of the project not surpris-
ing, that difficulties are now beginning to appear
in connection with the Coal and Steel Community
which are being given considerable publicity, but
in spite of both these negative factors, it seems
that the ideal of a new sort of future for Europe
still has great vitality for a surprising number
of people in the Federal Republic. Reports which
have come to me from several sources indicate
that the young people of Germany are, for the
present at least, reallj' enthusiastic about going
forward with plans for a close military, economic,
and political integration of the six nations who
signed the Edc treaty and are now part of the
Coal and Steel Community. Moreover, the agree-
ment just signed by this Government to extend a
loan of $100 million to the Coal and Steel Com-
munity," I hope will galvanize German and West

' For the texts of a communique and statements re-
lating to the loan, see BtriXETiN of May 3, 1954, p. 671.

European interests and prove a timely shot-in-the-
arm for what is still the most important single
venture in the field of European economic co-
operation. The year 1954 appears to be one of
those years in European history when there is a
tide running in a direction which we Americans
can only regard as being the right direction.
Whether this tide will be taken at its flood is still
admittedly uncertain.

Each one of j'ou has probably his own version
of the history of the last 50 years and is ready to
defend his own particular thesis as to the origins
of World War I, tiie failure of the Versailles
Treatj^ the rise of Hitler, and the subsequent
disaster of World War II. My own interpreta-
tion is that tlie AVeimar Republic was founded on
shifting sands. Tlie violence of the years 1919
and following, in which German assassinations,
street fighting, and putsches played an impor-
tant role, furthered the growth of political
reaction. Many turned their eyes to the nation-
alistic and militaristic ideals of tlie period from
1870 to ll'll. Therefore when tiie forces created
by the great social catastrophe of inflation and un-
employment and the failure of the victors in
World War I to carry out a wise and prudent
policy staged a series of revolutionary political
events, nationalistic and militaristic ideals — reac-
tion in short — came to the fore embodied in the
person of Adolph Hitler.

I recall this bit of history to your minds for the
purpose of contrast. If I am right, the number
of Germans today who envisage the future of their
country in terms resembling the period of imperi-
alistic glory is very small. Tonight, I refuse
to be prophet, tlierefore if some of you are in-
clined to say, all !, but the German mood may
change, I can only repeat that the difference in at-
titude between 195-1 and 1925 is a difference not of
degree but of kind. And after all, we mortals can
only predict the future in terms of the facts of
the present and the past.

The Divided World

Of course the fundamental difference in Ger-
many and tliroughout the free world today
between the present agonizing period in which we
live and the relatively tranquil times of the 1920's
reflects the basic fact that we live in a divided
world in an atomic age. For the people of Ger-
many since 1945, the existence of a divided world
has been ever present before their minds. Since
the Berlin blockade, no German could question the
fact that the Iron Curtain was being moved west-
ward to the line of the Elbe River. This fact,
coupled with the utter destruction of most Ger-
man cities and the complete collapse of all Ger-
man governmental structures on VE-Day in 1945
has meant that the Germans since the end of
World War II have been literally struggling for
their existence. The day-to-day task of merely

752

Department of State Bulletin

staying alive and attempting to reconstruct some
kind of order from the ruins of their nation oc-
cupied all their enei'gies until very recent years.
Therefore, the great cliiference in attitude between
Germany today and 30 years ago, one may well
say, is a consequence of the total defeat of Ger-
many in World War II followed by the decision
of the Western allies to prevent the sovietization
of all of Germany by the Russians during the occu-
pation period. Certainly tlie military events of
1944 and 1945 and the East-West diplomatic
struggle between the occupying powers of the
period 1945 to 1949 set the scene for Germany
today and for some years to come.

When we talk of Germany, it is well to bear
in mind that there are three Germanys : The Fed-
eral Republic comprising that portion of the for-
mer German Reich lying in the occupation zones
of the British, the French, and the Americans, in-
cluding some 50 million inhabitants; the Russian
Zone with its 18 million Germans lying to the
East; and the city of Berlin, the Western sectors
of which are an island of freedom deep in the
heart of the Soviet-occupied territory. When I
have been speaking about the attitude of the Ger-
mans, I have referred to the attitude of the citizens
of the Federal Republic and West Berlin. What
the people living in the Soviet Zone feel about the
past and future can be deduced from the evidence
supplied by thousands of refugees. But the tragit
fate of these 18 million Germans is one of the
brutal facts of history which stand before the eyes
of the fortunate Germans who live in the West-
ern Zones. The dramatic events of June 17 last
year underline the plight of the East Germans.
They also demonstrated their courage and their
desire for freedom.

In the almost 9 years that have elapsed since
the end of World War II, the 50 million Germans
in tlie Federal Republic have been able to recon-
struct a free democratic form of government
which I hope and believe will soon be essentially
sovereign. The cultural life of Western Ger-
many, thanks to the wisdom of the British, the
French, and the Americans, is again beginning to
flourish in an atmosphere of democracy and free-
dom. As to the physical rebuilding of West Ger-
many, that is a fact so striking and so well known
as to require no underlining to this audience.
Thanks very largely to American aid, first by spe-
cial appropriations and then through the Mar-
shall plan, but thanks also to the energetic and
skillful use of those funds by the Germans, Ger-
man industry has revived and the cities are in
process of being rapidly rebuilt. A traveler
through Western Germany today will find all the
signs of a prospei'ous, stable, industrialized so-
ciety and, unless our economic experts are com-
pletely wrong, the prospects for the continued
satisfactory development of industry and com-
merce in Western Germany are excellent indeed.
The currency is stable and the relation between

the banking system and the government is such
as to insure a stable financial policy. The atti-
tude of the economic advisers of Chancellor
Adenauer is very much on the side of the Ameri-
can concepts of initiative and free enterprise.
There is further evidence of the growing stability
and health of the German economic and financial
situation which is of particular interest to Ameri-
cans. The Federal Government, in recent months,
has found it possible to eliminate restrictions on
the import from the United States of nearly 3,000
commodities, many of which are of considerable
importance to our agriculture. It has also sub-
stantially reduced restrictions on the transfer of
earnings on investments in Germany of U.S. resi-
dents and on transfer of so-called "blocked mark
accounts."

Contrast Between East and West Zones

Contrast all this with what has been going on in
such cities as Leipzig, Dresden, and the Soviet
sector of Berlin. Here a puppet government was
installed by Soviet fiat in 1949 and later given
the appearance of constitutionality tlirough sham
elections in 1950 which favored the Communists.
Wliile the degrees of the severity of the regime
have varied from time to time, the characteristics
of a totalitarian state have been present from the
day of the surrender of Germany in 1945. Indeed,
and this is important, you must remember that
great numbers of the inhabitants of this eastern
part of Germany can never recall a time when they
have not lived either under the totalitarian inile
of the Nazis or the tyranny of the Soviet occupy-
ing forces. The economic situation reflects the
attempts of the Soviets to push their system west-
ward to the Elbe River; the farms have been
collectivized and the stores and industries largely
nationalized. Those who have visited the cities
in the Russian Zone tell me the physical contrast
between the East and West is so evident as to be
shocking.

Certainly as I myself have seen so often in
Berlin, there is a great distinction between West
Berlin, our side of the fence, with its well-stocked
shops, well-dressed inhabitants, motorcars, new or
i-ebuilt libraries, churches and theaters, and its
general air of freedom, and East Berlin, the Soviet
side of the fence. When one enters the Soviet
sector, one sees drabness and depression. In spite
of the much vaunted Stalinallee, a workers' hous-
ing development built along Moscow lines, not a
great deal of reconstruction has taken place.
Above all else one is oppressed by the atmosphere
of police control and austerity.

The control in East Berlin and the East Zone is
actually the control of Moscow. The appearances
could lead a naive obsei-ver to think that the Ger-
man Communist regime were masters in their own
house. This facade has been redecorated recently
by the proclamation of the sovereignty of the pup-

Aloy U, 1954

298648—54 3

753

pet government. The Soviet maneuver has fooled
no one and no standing will be accorded to the
regime by the free nations of the world.

The Refugee Problem

That there have been two million refugees from
the Eussian Zone to the Federal Republic in the
last 3 years will surprise no one. Tlie stream is
continuing at the rate of some 20,000 a month. For
tlie last year tlie Russians have permitted relatively
free travel between their zone and the rest of Ger-
many— I emphasize the word relative for the num-
ber of ports of entry are few indeed and the traffic
is strictly controlled. The border between the Rus-
sian Zone and the Federal Republic is marked by
barbed-wire fences, a plowed strip, and armed
guards at every turn. But the relatively free
travel means tliat as many refugees now come
across the border as tlirough Berlin. Tliis con-
tinued influx of several hundred thousand a year
added to the 10 million refugees already in West
Germany presents the Federal Republic with a
serious problem.

In recent months, as you are well aware, the
Russians have been doing all in their power to at-
tempt to raise the prestige of tiieir satellite gov-
ermnent, tlie so-called German Democratic Repub-
lic referred to colloquially in Germany as the Pan-
kow regime. Mr. Molotov at the Bcrliu Confer-
ence asked for the representatives of this govern-
ment to come to the conference. AVhen challenged
by Mr. Dulles as to the legitimacy of this govern-
ment and twitted about the forced election methods
used to choose the Legislative Assembly in his
zone, he unashamedly defended the Soviet concept
of free elections. Both in his remarks and subse-
quent articles in the East Berlin press, the system
of elections with the help of Soviet-controlled
unity lists was defined as the "only free and demo-
cratic'' method of choosing representatives. The
results of such elections (farcical from our point
of view) were contrasted with what happens when
in Soviet terminology militarists and capitalists
are allowed to compete as they did in the elections
of September wliich resulted in the return to
power of Chancellor Adenauer in the Federal
Republic.

Soviet Intentions

More than one observer of the Berlin Confer-
ence has drawn the conclusion from Mr. Molotov's
amazingly frank attitude that he was quite un-
willing to consider proposals for free elections in
all of Germany first of all because he did not wish
to relinquish his control of the Russian Zone, and
furthermore because he had his eyes fixed on the
ultimate control of all of Germany itself. I shall
long remember his cynical contempt for demo-

cratic procedures when he warned us: "We must
not be carried away by parliamentary formalities
and the organizational and technical aspects of this
matter"; ''this matter" happened to be the idea
proposed by the ITnited States, Great Britain, and
France and desired by all Germans of holding free
and democratic elections throughout Germany.
But Mr. Molotov thought that we were "carried
way by formal constitutionalism." It seemed to
some of us that he was anxious to support his
pujipet regime in the Russian Zone for several
reasons. First, for the sake of the prestige of
those Germans who had cast their lot in with the
Russians; second, because he needed to support
the prestige of the satellite governments in Po-
land, Czechoslovakia, and nearby lands; and third,
because he was preparing his case for the extension
some day of his electoral methods to all of Ger-
many, lie seemed to have his eye on a future
which would come when the wedge he was trying
to drive between the Western allies finally
found a weak spot and opened enormous cracks.
That Mr. Molotov and his colleagues in the Krem-
lin may dream such dreams at the present moment
may seem fantastic. However whether it may
sound impossible to us here and whether it is dis-
believed oy evei-y German matters little to the
men of the Kremlin. Mr. Molotov may assume
that .some day the jiresent American foi-eign policy
will weaken and our economic structure collapse,
that the American military forces will no longer
consider Furoj)e the outpost of their own defense,
that the French and the (Jermans will renew their
old hostility and be ready to stab each other in the
back, that the whole free world will go through
a major depression with a conse(|uent vast unem-
ployment in AVestern (iei'inany. Under such a set
of circumstances, the masters of the Soviet Union
would be indeed in a i)Osition to talk about the
(Jerinan problem in far different tones from those
we heard in Berlin last January.

Let me remind you that tonight I have promised
not to be a i^rophet. My last few sentences have
dealt only with what may well be a prophetic
vision in the eyes of the dwellers of the Kremlin.
If I am at all right in this supposition, then the
task for us in the free world is to do all in our
power to prevent the future resembling in any way
that which Mr. Molotov and his associates may
hopefully have in mind, and in this regard the
United States and West Germany at present see
eye to eye. For, as I have already reported, the
German leaders seem anxious to work for some
type of European integration; among the youth
of Germany today the ideal of a new type of Euro-
pean community has a powerful hold. One need
not be a prophet to say that the future of free
Europe depends on tlie future relations of Ger-
many and France; in spite of many discourage-
ments of the past few years, I believe the signs
are still predominantly favorable for continued
progress toward European cooperation.

754

Department of Slate Bulletin

Integration With Western Europe

The policy of Chancellor Adenauer is a policy
of integration of West Germany with AVestern
Europe. He regards such integration as a nec-
essary step toward the reunification of Germany
in peace and freedom. Contrary to what some
of his political opponents maintain he believes
there is no antithesis between unification and
European integration. Rather, he and his asso-
ciates believe that the Russians made it plain at
Berlin that until the West proves itself to be
strong and united, the Russians will not forego
their ambitions to move the Iron Curtain further
westward and will not consider relinquishing
their hold on the Russian Zone of Germany. Fol-
lowing his line of thought, one could look forward
to the day when a reunited Germany can become
one of the stalwart nations in a new type of free
Europe, a free Europe which can face boldly the
totalitarian challenge fi-om the East.

This vision of the future which appeal's to be
in the minds of the leaders of the Federal Repub-
lic today may be regarded by some of you as an
illusion. I know the fear of a revitalized Ger-
many exists.

Many people in the United States are appre-
hensive about what the new Germany will do.
They have seen or heard or read of the teeming
energy of West Germany in 1954. They only ask
themselves, "Will this powerful new nation prove
a stabilizing influence or will it as it has twice
in the memory of most of us draw us into a
holocaust?" I have said I was not going to be
a propliet but I do venture to summarize my pre-
vious diagnosis: Germany today is unlike Ger-
many either in the 1920's, the 1930's, or before
World War I. There are a number of powerful
political personalities in different parties work-
ing toward a close cooperation with the West and
strong believers in a peaceful and democratic
Germany. These men need the help and under-
standing of the freedom loving people of this
country and the European nations. The error of
the victors in the 1920's must not be repeated.
The recent declaration of assurance of Great
Britain and the United States, contingent, of
course, on the realization of the European Defense
Community,^ renders it clear that the new Ger-
many will be a firmly integrated member of the
free world. I know no better answer to those who
raise questions about the future of Germany after
its sovereignty is restored.

Netherlands Gives Carillon
to United States

The arrival in Washington of L. G. Kortenhorst,
Chairman of the States General of the Nether-
lands, to attend the ceremony transferring cus-

'Ibid., Apr. 26, 1954, p. 619.

tody of a carillon which the Netherlands people
are giving to the people of the United States, was
announced by the Department on May 3 (press
release 224). Dr. Kortenhorst's position in the
Netherlands is analogous to the office of Speaker
of the House of Representatives in the United
States.

On April 4, 1952, Her Majesty, Queen Juliana
of the Netherlands, presented a token gift sym-
bolizing the permanent carillon to be given at a
future date.^ The remaining 49 bells have now
arrived and, pending the erection of a permanent
tower for them, have been placed in a temporary
framework in West Potomac Park. This gift is
being offered in gratitude for the American con-
tribution to the liberation of the Netherlands and
for subsequent aid from the United States in the
reconstruction and rehabilitation of the Nether-
lands.

Joseph W. Martin, Jr., Speaker of the House
of Representatives, will take custody of the bells
on behalf of the people of the United States during
the ceremonies at West Potomac Park on May 5.

Symbol of Rumanian People's
Fortitude and Perseverance

Statement hy Secretary Dulles

Press release 237 dated May 8

President Eisenhower, in his address delivered
at a luncheon of the i\jnerican Society of News-
paper Editors on April 16, 1953, stated that one
of the political settlements the United States looks
forward to is the full independence of the East
European nations.

It is fitting that on May 10 the people of Ru-
mania both at home and abroad should be re-
minded of this statement by the President. May
10, the traditional national holiday of the Ru-
manian people, is celebrated in commemoration
of three great events in Rumanian history. In
1866, May 10 witnessed the proclamation of
Charles as Prince of Rumania; 11 years later on
the same date the Principality of Rumania pro-
claimed its independence; and on ISIay 10, 1881,
Charles was crowned, by the will of his people,
King of Rumania.

Knowing full well the people's attachment to
the anniversary of these glorious events in the
history of their country, the present Rumanian
regime attempted to shift the celebrations to other
days in honor of more recent events. This effort,
however, was fruitless. Even though the people
of Rumania are today prevented by ruthless force

' For the text of an address by President Truman made
on the occasion of the acceptance of the gift, see Bulletin
of Apr. 21, 1952, p. 613.

May 17, 1954

755

from outward celebrations on May 10th, it is cel-
ebrated in their hearts as a symbol of their for-
titude and perseverance. It is my conviction that
this fortitude and perseverance, wliich has served

the Rumanian people so well during their entire
history, will continue to serve them until they can
recover their real independence of which they
were so justly proud.

U. S. Rejects Soviet Proposals for European Security

TEXT OF U. S. NOTE

Following is the text of a note delivered on
May 7 by the A7nenca7i EmhanHy at Moscow to the
Soviet Ministry of Foreign Affairs in reply to
the Soviet note of March 31, 1954, concerning
European security:

Press release 236 dated May 7

The United States Government has consulted
the British and French Govermnents and the other
interested governments, and in particular those
of the North Atlantic Treaty Organization, on
those aspects of the problem of Euro]iean security
which were fidly discussed by the four Foreign
Ministers at Berlin and to which the Soviet Gov-
ernment again drew attention in its note of
March 31.

The United States Government has long been
striving for the universal reduction of armaments,
to include the prohibition of atomic and other
weapons of mass destruction and the control of
atomic energ}-. In the United Nations Atomic
Energy Commission, the United Nations Commis-
sion on Conventional Armaments, and subse-
quently in the United Nations Disarmament Com-
mission, the United States Government has
worked to secure international agreement on dis-
armament and to put an end to the competition in
armaments which is imposing such a burden upon
the peoples of the world. Such agreement can
only be reached by progressive and balanced dis-
armament with effective safeguards which would
remove the dangers of aggression from any
quarter. The United States Government is deter-
mined to do everything in its power to bring to
a successful conclusion the conversations started as
a result of President Eisenhower's initiative as
well as the disarmament negotiations which will
shortly begin again in the United Nations. It
hopes that the Soviet Government will make a
constructive contribution to the solution of these
problems.

If these negotiations are to succeed, a sense of
security and confidence must first be established.

756

It is in this light that the United States Govern-
ment has again carefully studied tiie Soviet pro-
posals on European security first put forward in
Berlin ' and now repeated in the Soviet Govern-
ment's note. In these the Soviet Government does
not attempt to remove the actual causes of Euro-
pean tension. Instead it proposes a new collective
security treaty which is avowedly based on the
neutralization and continued division of Germany
while leaving unclianged the Soviet Government's
close political, economic and military control over
the countries of Eastern Europe. This can only
prolong insecurity and division in Europe. These
proposals, even when amended to permit United
States participation, do not provide any founda-
tion for genuine security.

The addition to the United Nations of such an
organization as that proposed by the Soviet Gov-
ernment, embracing the Soviet Union, the United
States and all . European countries woidd con-
tribute nothing to what is already a world-wide
security organization. It would not only be use-
less but also dangerous because it would inevi-
tably tend to destroy the authority of the United
Nations. The United States Government can-
not therefore acce])t the Soviet proposal. Col-
lective security M-ould best be safeguarded if the
Soviet Government would permit the United Na-
tions to function as the Charter intended.

Tlie Soviet Government has also suggested that
its proposed Collective Security Pact shoiild be
accompanied by an extension of the Atlantic Pact
through the adherence of the Soviet Union to the
North Atlantic Treaty. It is unnecessary to em-
phasize the completely unreal character of such
a suggestion. It is contrary to the very prin-
ciples on which the defense system and the security
of the Western Nations depend. These nations
have bound themselves by close ties of mutual
confidence. The North Atlantic Treaty Organ-
ization, which is much more than a purely mili-
tary arrangement, is founded on the principle of

' Bulletin of Feb. 22, 1954, p. 269.

DeparfmenI of Sfafe Bulletin

individual liberty and the rule of law. The means
of defense of its members have been pooled to
provide collectively the security which they can-
not attain individually, in the face of the military
preponderance which the Soviet Union has at-
tained in Europe since 1945 and of the westward
expansion of a political, economic and military
system subject to its sole control. The North
Atlantic Treaty Organization is wholly defensive.
There is free and full exchange of information
between all its members. All its decisions are
taken by unanimous consent. The Soviet Union
as a member of the organization would therefore
be in a position to veto every decision. None of
the member states is prepared to allow their joint
defense system to be disrupted in this way.

European and world security will not be pro-
moted by the disruption of defensive associations
of like-minded states and the substitution of new
illusory security organizations. The United
States Government remains convinced that the
only way to remove the sense of insecurity which
weighs on the world is through step-by-step solu-
tions of individual problems. It does not believe
that a lastint^ settlement can be achieved by erect-
ing a new facade of security behind which the
fundamental difBculties and divisions remain
unchanged.

With these thoughts in mind, the "Western
Powers at Berlin advocated a plan which would
have constituted a first step towards the solution
of the German problem.^ The Soviet Govern-
ment would not even discuss this plan. The
Western Powers also put forward proposals
designed to reinforce the security of Europe on
the basis of existing agreements. The Soviet
Government refused also to consider these pro-
posals. The Western Powers offered to accept
the Soviet text of every unagreed article of the
Austrian State Treaty. But the Soviet Govern-
ment, far from agreeing to sign on its own terms,
attached new and unacceptable conditions which
would have totally changed the treaty fi'om one
of freedom and independence to one of indefinite
occupation by foreign troops.

The Soviet Government has repeated the criti-
cisms it made at Berlin about plans for a European
Defense Community. The United States Govern-
ment has already stated its views on this subject.
It is quite untrue to suggest that the present plans
which are of limited scope are responsible for the
division of Europe or aggravate the risk of war.
The division of Europe was brought about by the
Soviet Government, and its refusal to contem-
plate the reunification of Germany on the basis of
free elections is one of the elements that serves to
perpetuate this division. In these circumstances
the Federal Republic of Germany cannot be al-
lowed to remain without any means of defense

when the Eastern Zone of Germany, as its leaders
openly acknowledge, possesses substantial armed
forces. The United States Government considers
that the best and safest way for all concerned to
solve the problem of a German contribution to
defense is within the framework of an association
which by its very nature would prevent Germany
from taking any individual armed action.

The United States Government remains con-
vinced of the urgent need to improve relations
between states and to ensure mutual security. It
suggests that progress could best be made toward
the elimination of the sources of international
tension if the Soviet Government would give con-
crete evidence of its good intentions bj' joining
with the Governments of France, the United
Kingdom and the United States in (1) findin^^ a
speedy settlement of the Austrian question that
will restore to Austria its full sovereignty and
independence; (2) seeking a lasting and accepta-
ble solution of the German problem; (3) reaching
early agreement on general, progressive, balanced,
and supervised disarmament: such agreement
should specifically include the prohibition of
atomic and other weapons of mass destruction and
the control of atomic energy under adequate safe-
guard; (4) working for solutions of the most
pressing problems in the Far East at the Geneva
conference; (5) conforming their behavior in the
United Nations to the principles of the Charter
and so enabling the United Nations to fulfill its
true role as an effective organization for collective
security.

TEXT OF SOVIET NOTE OF MARCH 31

The Soviet Government finds it necessary to call tbe
attention of the United States Government to the
following :

The Soviet Union has consistently pursued a policy of
peace and of improving relations between countries.

This is reflected in the proposals which the Soviet Gov-
ernment has put before the United Nations for a general
arms reduction and for the prohibition of atomic and other
weapons of wholesale annihilation."

If the proposal of a general arms reduction and the
prohibition of atomic and other of the most dangerous
weapons of wholesale annihilation were ad.justed, the
heavy burden the people carry now owing to the continued
arms drive would be greatly eased, and the danger that
such major scientific discoveries as the discovery of ways
of employing atomic energy might be used for destructive
purposes would be eliminated.

The solution of this problem would be highly significant
in promoting peace and the security of the peoples.

Up to now, as is known, it has not been possible to obtain
the proper international agreements on the afore-
mentioned important issues because of the difficulties en-
countered.

This circumstance, however, should not detract from the
significance of the efforts, especially on the part of the big
powers, which bear a particular responsibility for the

' Hid., Feb. 8, 1954, p. 186.
May 17, 1954

' Bulletin of Dec. 14, 1953, p. 834.

757

maintenance of world peace, to obtain such agreements.

As far a.s the Soviet Union is concerned it will continue
to insist that a substantial reduction in the arms and
armed forces of the countries is necessary and that an
agreement must be reached to rule out the employment of
atomic energy for destruction and the wholesale annihila-
tion of human bein.i;s.

The signiticance of such efforts on the part of the coun-
tries is growing ever greater, especially since the destruc-
tive power of atomic weapons Is constantly increasing and,
more than that, there have appeared hydrogen weapons
which are many times more powerful than atomic weapons.

There can be no doubt that the employment of atomic
and hydrogen weapons in a war would bring the peoples
untold suffering.

It would mean the wholesale annihilation of civilians
and the destruction of big cities, the centers of present-day
industry, culture, and science, including such old centers
of civilization as the leading capitals of the world.

In ob.serving corresponding efl'orts to make it easier to
reach agreenjent on these major problems, the Soviet Gov-
ernment also is acting on the belief that there are other,
as yet unutilized, opportunities for building up peace.

First of all, the signiticance of strengthening security
in Europe should be ntjted, inasmuch as the maintenance
of peace in Europe is decisively important if general peace
is to be maintained and a new world war prevented.

With this in view, the Soviet Government put a pro-
posal to guarantee security in Europe before the Berlin
meeting of French, Kritish, United States, and Soviet
foreign ministers and, in this connection, submitted a
draft of the fundamentals of a general European treaty
for collective security in Europe.

The draft provides for a general European system of
security based on the collective efiforts of all the countries
of Europe.

All the European countries, irrespective of social sys-
tems, can be participants. This includes Germany.

Moreover, pending the integration of Germany, the
German Democratic Republic and the German Federal
Republic could be signatories to the treaty.

In the case of an armed attack on any one of the signa-
tories, the treaty stipulates that the attacked country
shall be assisted by every possible means, including the
use of armed force, to restore and maintain international
peace and security in Europe.

Consequently, the draft proposals for a general Euro-
pean treaty are intended to establish an effective system
of collective security in Europe in accordance with the
principles of the United Nations Charter.

The creation of a general European system of collective
security would put an end to the formation in Europe of
antagonistic military groups of countries.

The establishment of such groups invariably tends to
aggravate relations between countries and increase hostil-
ity and distrust, to say nothing of the fact that it is at-
tended by an arms drive with all the resulting conse-
quences for the people.

It should also be borne in mind that the creation of
one military group of countries invariably precipitates
corresponding action on the part of other countries to
guarantee their security.

As a result, there arises a situation in which relations
between countries are based not on a desire for mutual
cooperation in the interests of keeping peace, but on such
an ol3f-setting of each other as inevitably increases the
strain in relations between countries and thereby height-
ens the menace of another war.

It must not be overlooked that both the First and Sec-
ond World Wars were preceded by the establishment of
antagonistic military groups of countries and the split-
ting of Europe into two hostile camps.

Nor must we forget the particularly dangerous role of
German militarism in such military groups and in pro-
voking the First and Second World Wars.

All this underscores how important it is to offset the
policy of forming antagonistic military groups of coun-

tries with a policy of effective cooperation on the part of
all the European countries for the sake of maintaining
and promoting peace.

Such cooperation between all the European countries,
large and small, irrespective of social systems, would
make it possible to avoid a situation in which Europe
is periodically embroiled in devastating wars as the his-
tory of the European countries for the last 100 years
shows.

It is for this reason that the Soviet Government time
and time again has called the attention of the United
States Government as well as the British and French
Governments to the danger inherent in the formation
of military groups of countries.

For one, the Soviet Government has drawn attention
to this in view of the plans to form what is called the
European Defense Community, plans that lead to the
restoration of German militarism with all the resulting
dangerous consequences for peace in Europe, especially
for the security of West Germany's neighbors.

The plans to form a European Defense Community, it
is known, stipulate the establishment of a closed military
group of six European countries behind the screen of
which a so-called European army, comiirising the armed
forces of France, Italy, Belgium, the Netherlands, Luxem-
bourg, and West Germany, too, would be organized.

The main role in this European army is assigned to
the armed forces of West Germany with Nazi generals
at the head. This conflicts with the commitments as-
sumed by France, Britain, and the United States together
with the Soviet Union not to permit a resurgence of
German militarism.

What is more, there are already plans on foot to es-
tablish several dozen West German divisions.

It is also well-known that In view of the plans to
organize a European army, the ruling quarters of West
Germany are openly working to speed the remilitarization
of West Germany and to form regular armed forces of
all kinds and no longer find it necessary to conceal their
aggressive aims with respect to neighboring countries.

For this reason the peace-minded nations of Europe,
especially West Germany's neighbors, cannot but feel
a legitimate anxiety for their security, in view of the
danger stemming from a reviving German militarism
and the incorporation of West Germany in a European
Defense Community.

Reviving German militarism and forming military
groups in Europe, far from promoting peace, means pav-
ing the way for another war.

Yet today, more than ever before, all the peace-minded
countries, and above all the big powers, should direct
their efforts to preventing a new war and to seeing that
the peoples of Europe — including the Germans — are not
involved in another war, which in present conditions is
particularly dangerous for the nations.

This can be successfully achieved if instead of antag-
onistic military groups of European countries, there is
created a system of security based on the common efforts
of all the European countries.

At the same time the establishment of such a system
of collective security in Europe would promote a general
peace. This is the very reason why the idea of collective
security in Europe, especially since the Berlin meeting,
commands the energetic support of a number of countries,
as well as of large international forces.

When the Soviet proposal to conclude a general I-'uro-
Ijean treaty was examined at the Berlin meeting, there
proved to be divergencies which made it impossible to
reach agreement.

However, in view of the Importance of reaching the
proper agreement on this major issue the Soviet Govern-
ment feels it would be expedient to continue discussion
of the proposal.

In connection with the examination of the Soviet pro-
posal to guarantee collective security in Europe, the
opinion has been voiced that it is undesirable that the

758

Department of State Bulletin

United States should remain outside the treaty for collec-
tive security in Europe.

In view of this, and, bearing in mind the participation
of the United States during World War II in the common
tight against Nazi aggression, and the responsibility
which it bears, along with the Soviet Union, France and
Britain, for a post-war settlement in Europe, also con-
sidering the view expressed by the United States Govern-
ment at the Berlin meeting,' the Soviet Government, for
its part, sees no obstacles in the way of a favorable ad-
justment of the problem of United States participation in
a general European treaty for coUective security in
Europe.

Thus the difficulty in the way of an agreement to set
up a system of collective security in Europe which has
been noted up to now should disappear.

When the Soviet proposal for a general European treaty
was examined at the Berlin meeting, the matter was also
raised of the place and role of the North Atlantic Treaty
Organization in connection with the establishment of a
system of collective security in Europe.

The spokesman of the United States, as well as Britain
and France, asserted that the North Atlantic Treaty was
defensive and was not directed against any country or
group of countries.

Statements to this effect have been made by ofiBcial rep-
resentatives of the United States, as well as spokesmen
of Britain and France, since the Berlin meeting in com-
ment on the Soviet proposal to establish a general Euro-
pean system of collective security.

The position of the Soviet Government with regard to
the North Atlantic Treaty is well known. The Govern-
ment of the U.S.S.R. did not share, nor can it today, the
view that this treaty was defensive.

The Soviet Government proceeds from the fact that the
North Atlantic Treaty establishes a closed group of coun-
tries and ignores the problem of averting fresh German
aggression.

And inasmuch as the Soviet Union, of all the big powers
that belonged to the anti-Hitler coalition, is the only one
that is not a signatory to this treaty, the North Atlantic
Treaty cannot but be regarded as an aggressive pact
directed against the Soviet Union.

Plainly enough, given the proper conditions the North
Atlantic Treaty Organization could lose its aggressive
character — that is, if all the big powers that belonged to
the anti-Hitler coalition became its participants.

In view of this the Soviet Government, guided by the
unchanged principles of its foreign policy of peace and
desirous of relaxing the tension in international relations,
states its readiness to join with the interested govern-
ments in examining the matter of having the Soviet
Union participate in the North Atlantic treaty.

Inasmuch as the United States Government, as well as
the British and Fi'ench, say they wish to ease world ten-
sion and promote peace, we may expect that they will
look with favor on steps to insure such a situation where-
l)y the North Atlantic Treaty would acquire a really
defensive character and the ground would be laid to
prevent any part of Germany from becoming involved In
military groups.

In such a case the North Atlantic Treaty Organization
would cease to be a closed military group of states ; it
would be open to other European countries — and this,
along witli the establishment of an effective system of
collective security in Europe, would be highly important
in consolidating world peace.

The Soviet Government feels that problems arising in
this connection could be settled to the satisfaction of all
the interested countries in the interests of a more endur-
ing peace and great security for the peoples.

Economic Assistance to India

Statement hy George V. Allen
A mhassador to India ^

I welcome this opportunity to appear before
you to support the proposal for economic and tech-
nical assistance to India as recommended to the
Congress by the President earlier this year.

There has been much discussion about India's
attitude toward us and some questioning as to
whether we should continue our aid with the cur-
rent year's program. I hope that the information
I have obtained during my year of service in
India will assist the members of this Committee in
acting on this request.

First, let me say that the leaders of India desire
our aid and will welcome its continuance. And
from personal experience and observation I be-
lieve that past aid has been used effectively and
that the proposed program for 1955, if approved
by Congress, will also be effectively used.

Indians are well aware of what we are doing to
help them. Americans today are advising in the
various Ministries in New Delhi and throughout
India. They have established personal relation-
ships of a very friendly character, and their work
is being made more immediately effective because
of the economic aid which is supporting their
technical advice. They are working with Indian
experts and technicians in bringing to the Indian
people some realization of the people's hope and
demand for economic improvement. In my opin-
ion, it is in the national interests of the United
States to continue our aid in a manner so that its
effectiveness will not be impaired.

The people of India and their leaders believe in
a democratic form of government and are trying
to make economic progress through democratic
institutions. This is in sharp contrast to auto-
cratic, dictatorial. Communist methods. The
present leadership of India and the Congress
Party are politically committed to achieving such
progress. I admire their courage and aspirations.
It would be a tragic day for us if their present
confidence in democratic methods should fail and
they thereby would abandon hope for the future
under a democratic form of government. It is
fully in our own interest to do what we can to
assist in the present effort now being made in
India.

I am keenly aware of the differences of opinion
and policies between India and ourselves. The
foreign policies of the Government of India and
of the United States are frequently divergent.
But we should keep in mind that democracy and
freedom of opinion go hand in hand and that
freedom must accept diversity of views. It is my

* For statements made by Secretary Dulles at Berlin on
Feb. 10 and Feb. 15, see iT)id., Feb. 22, 1954, p. 267, and
Mar. 1, 1954, p. 311.

^Made before the Connuittee on Foreign Affairs, House
of Representatives, on May 4 (press release 226).

May 17, 1954

759

belief that an independent India is a source of
strength to the free world.

Let me say that my views on next year's aid
program for India were not arrived at lightly ; in-
deed, I have considered this question seriously
and continuously over a period of 12 months. I
have come to the conclusion that it is wise to con-
tinue a substantial program and that the results of
such action will be beneficial to both India and
ourselves.

Termination of Pal<istan
Wheat Program

Prime Minister Mohammed Ali of Pakistan
announced at Karachi on April 27 that the special
U.S. wheat program had achieved its purpose and
could be terminated. Shipments of nearly 23
million bushels (G10,976 tons) successfully averted
critical famine conditions that had beset his coun-
try, Prime Minister Ali said.

On the same date, the Director of Foreign Oper-
ations, Harold E. Stassen, issued the following
statement :

The Pfikistan wheat program which has come to suc-
cessful fruition stands as a worthy example of the high
purposes of United States foreign policies. It has helped
save from starvation millions of human lieings. It has
been gratefully received and efficiently administered and
distributed. It has helped a friendly nation avert a
national disaster by providing food which was in abun-
dant supply in the United States. Through this program,
we have contributed to economic stability in Paiiistan and
strengthened confidence and morale.

The people of Pakistan are to be congratulated on the
careful manner in which they carried out the handling
and distribution of this wheat.

Crop failures caused by severe droughts in 1951
and 1952 confronted millions of Pakistan's popu-
lation with the threat of famine in 1953. On
April 22 Pakistan asked for emergency aid from
the United States and President Eisenhower re-
quested the Congress to give him authority to
make available up to 1 million tons of wheat out
of Commodity Credit Corporation stocks.'

The Congress sped tlirough legislation and on
June 25 President Eisenhower sigited the bill.=
The next day. the first shipment of wheat left
Baltimore for Karachi.' It arrived July 21.

The Pakistan Wheat Aid Act provided for ship-
ment of 700,000 tons (about 26 million bushels)
of wheat to Pakistan on a grant basis. An addi-
tional 300,000 tons could be made available under
the legislation on a grant, loan, or purchase basis,

• BaLLETiN of June 22, 1953, p. 889.

■ Ibid., July 6, 1953, p. 15.

' For text of reniarlvs made by Horace A. Hildreth, U. S.
Ambassador to Pakistan, at the shiploading ceremony, see
ibid.

depending on the situation. Neither the balance
of approximately 87,000 tons nor the 300,000 ton
reserve will be needed, it now develops.

At one time, as many as 28 vessels were on the
high seas carrying wheat to Pakistan. The 94th
and last shipment, consisting of 2,470 tons, is now
enroute and is due to arrive in Chittagong about
May 22.

The Pakistani Finance Minister has announced
that some 30 percent of the wheat received was
distributed free to the most needy. The balance
reached the market through the normal channels
of distribution. Because the food grain was
readily available to the consumer, the price de-
clined sufficiently to produce a stabilizing effect on
otlier basic foods.

The Pakistani Ambassador to the United States
has said that "several million" of his people have
been saved from starvation by the program.

From the sale of tiie wheat, the Pakistan Gov-
ermnent expects to realize about $50 million in
rupees which is earmarked to support projects
agreed upon by the United States and Pakistan
(xovernments as necessary to the development of
the country, with emphasis on projects designed to
provide against a recurrence of this last famine
threat.

Wheat was shipped from the United States in
bulk and was bagged in the hold of the ship upon
its arrival in Karachi by Pakistani workmen who
labored around tlie clock. The sacks of wheat were
distributed via sealed railroad cars, trucks, and
even by camel to the remote villages.

About ()7 percent of the wheat sliipped was hard
winter wheat, which is used in maKing cluippati.
The remainder was soft wheat. Of the sliips that
carried wlieat to Pakistan, 56.9 percent were of
U. S. registry. The shipments originated from
the following areas of the United States : 33 per-
cent from the Atlantic coast, 59 percent from the
gidf ports, and 8 percent from tlie Pacific North-
west.

PAKISTAN OFFERS TOKEN OF GRATITUDE

The Government of Pakistan announced on
May 5 that "as a token of deep appreciation of
the people of Pakistan of the valuable gift of
wheat made by the United States Goverimaent last
year, the Government of Pakistan have decided
to supply, at their own cost, the labor needed for
the construction of the new Chancery premises,
which the United States Government hopes to
build in Karachi. This offer has been formally
made to the United States Government."

In a statement issued on May 4 (press release
227) , Acting Secretary Murphy said :

"The generous offer of the Government of Pak-
istan to supply, at Pakistan's cost, the labor that
would be involved in the construction of a Chan-

760

Department of Stale Bulletin

eery building for the United States Embassy in
Karachi is acknowledged with great appreciation.

"The United States Government has been in-
formed that this gesture represents the desire of
the Government and the people of Pakistan to
give evidence of their deep appreciation for emer-
gency wheat shipments, which the United States
supplied to Pakistan. The wheat aid program
was successfully completed recently with a Pak-
istan Government announcement that no further
shipments were needed.

"The Department of State plans to avail itself
of Pakistan's offer and will request, through the
appropriate channels, funds with which to con-
struct the Chancery. In the meantime the Pak-
istan Government's concrete gesture of gratitude
will be warmly received in the United States."

Immigration Into Israel

Press release 231 dated May 5

The Israeli Ambassador to the United States,
Abba Eban, called upon Assistant Secretary
Byroade on May 5 to protest officially certain re-
marks made by Mr. Byroade in an address at
Philadelphia on May 1.'

The Israeli protest centered around the portion
of that address on immigration into Israel.

Mr. Byroade explained to the Ambassador that
he had felt impelled to speak frankly on what
seemed to be some of the underlying causes of the
Arab-Israeli dispute because it seemed to be in-
creasingly affecting the security of the Middle
East — and, hence, that of the United States. He
said he felt the American people were entitled to
such information, particularly in view of the new
evidence of Soviet intentions in the Middle East
which had not heretofore been highlighted for the
American people.

Mr. Eban was informed by Mr. Byroade that he
regretted the Israeli Government had interpreted
his remarks on the subject of immigration as an
intervention in Israel's internal affairs. It seemed
to him that the Israeli Government had overlooked
the basic point in that portion of the speecli, which
was that the Arab world does have a fear of Israeli
expansion at some future date to meet the needs
of an expanded citizenry. The fact that such a
fear existed reached the Department daily in its
many reports from all over the Middle East and
was confirmed by frequent firsthand observation in
the field of visiting Department of State pei-sonnel.

Mr. Byroade pointed out that an analysis of his
speech would reveal that the course of action Israel
might choose to lay at rest this type of fear of the
Arabs was not specified ; and he hoped that serious
attention would still be given by the Government

' Bulletin of May 10, 1954, p. 708.
May 17, 1954

of Israel to finding a solution to the problem raised.
The address merely stated that assurances by the
Great Powers should be supplemented by Israel
herself finding some way to lay at rest this concern
of her neighbors and thus remove this specter of
fear — which he had said did not seem to him to be
based upon reality — from minds in the Middle
East. It called upon wise statesmanship to find a
way of such accomplishment.

International Bank Report

The International Bank for Reconstruction and
Development on Alay 3 reported a net income of
$15,006,406 for the 9-month period ended March
31, 1954, compared with $12,947,735 for a corre-
sponding period in 1953.

Tliis income was placed in the supplemental
reserve against losses on loans and guaranties,
and raised the reserve to $91,519,917. Loan com-
missions amounted to $8,552,839 and were credited
to the bank's special reserve, increasing that re-
serve to $45,789,316.

Total reserves on March 31, 1954, were
$137,309,233.

Gross income, exclusive of loan commissions,
was $36,994,782, compared with $31,682,273 for
the corresponding period in 1953. Expenses
totaled $21,988,376, including $4,417,789 of ad-
ministrative expenses, $14,776,629 of bond in-
terest, and $2,793,958 of bond issuance and other
financial expenses. The bonds issued during the
9-month period were $75 million 3 percent 3-year
bonds, due October 1, 1956; $100 million 31/2 per-
cent 15-year bonds, due January 1, 1969; Swiss
franc 50 million 3^/^ percent 15-year bonds, due
July 1, 1968; and Swiss franc 50 million 3i/^ per-
cent 15-year bonds, due December 1, 1968. In
addition, the bank signed an agi'eement for the
issuance of Swiss franc 50 million 3i^ percent
18-year bonds, due April 15, 1972.

During the 9-month period, the bank made 22
loans totaling $275,482,000 in Australia, Brazil,
Chile, Colombia, Ecuador, Iceland, Italy, Japan,
Nicaragua, Panama, Turkey, and the Union of
South Africa. These loans increased total loans
signed by the bank to $1,866,248,464 as of March
31. Disbursements on loans were $211,591,099,
bringing total disbursements to $1,314,852,214.

Repayments of principal were received from
borrowers as due; they totaled $2,715,263 and
brought total principal repayments to $15,383,573
on March 31. During the period, the bank also
sold or agreed to sell to private investors $21,-
607,465 principal amount of its loans; this in-
cluded $16,322,767 without its guaranty and
$5,284,698 with its guaranty. At March 31, 1954,
these transactions brought total sales of effective
loans to $91,622,119; $36,534,275 of these sales
were made without the bank's guaranty.

761

The United States and Canada as Neighbors and Partners

hy Vincent Massey
Governor General of Canada '

First may I thank you for the high compliment
you have paid my country this morning and for
the warmth of your welcome which has touched
me very deeply. I feel greatly honored that I
should be asked to meet, on this occasion, the mem-
bers of the two great legislative bodies assembled
in this Chamber. I am conscious at this rno-
ment — and who would not be — of the relation
between the course of world events and the deci-
sions which are arrived at here. You have given
me a rare privilege today, and I am very grateful
to you for it.

I feel no stranger in this city. I spent several
very pleasant yeare here long ago. when my task
was to set up the first diplomatic mission from
Canada to your country, and my privilege to serve
as envoy. This was when the nations of our
Commonwealth commenced to send their own
representatives abroad — first to this capital — each
concerned with his country's business but all look-
ing on the same sovereign as the head of the
Commonwealth.

As Canadian Minister I bore credentials from
our sovereign. I now come to you again as a
representative of the Crown — this time not in a
post abroad but in one at home. "Governor Gen-
eral" is, perhaps, a rather misleading term. A
person holding that office does not govern. His
functions, indeed, can easily be confused with those
of governors in some other countries who, unlike
him, are administrators. We, no less than your-
selves, are, of course, a completely free and inde-
pendent nation. Canada alone among the
countries of the Americas is a constitutional mon-
archy. Under our system the Governor General
represents the sovereign, who is the head of our
Canadian State, and with us. all actions in the field
of government from the passing of legislation to
the delivering of mail are performed, to quote the
ancient phrase we use, "On Her Majesty's service."

' Address made before a joint session of the Senate and
the House of Representatives on May 4; reprinted from
the Cong. Rec. of the same date, p. 5634.

762

In June of last year, an event took place of liigh
significance to us in Canada. In none of Her
Majesty's realms was her coronation celebrated
with greater fei-vor. May I say that as your
neighbors, we Canadians were greatly touched by
the deep and widespread interest displayed by the
American people in this event. May I be per-
mitted to convey to you the sincere appreciation of
the Queen's subjects in Canada, for your sensitive
understanding of a ceremony which meant so
much to us and, we believe, nuich to the world.

Declaration of Independence a Challenge

On an occasion such as this, made possible by
your graceful hospitality, one is reminded of all
that our Commonwealth owes to you, and, indeed,
has owed ever since you established your free Re-
public here on this continent. The principles en-
shrined in your Declaration of Independence and
in your Constitution were a challenge to the
British peoples in the 18th century, and since, to
seek out the sources of their ancient freedom —
sources from which we all have fed. Thus, you
helped us to cultivate our own institutions under
the Crown, which to us is a symbol of freedom and
duty. We are grateful to you for aiding us in the
Commonwealth to preserve and enrich our own
way of life.

Even at the very beginning, the noble emotions
inspired by the declaration of the fathers of this
Republic, and the solid framework of the Consti-
tution which they built, were comprehended and
welcomed by many in Great Britain. I belong to
a club in London — a stronghold of the Whigs in
the 18tli century — many of whose members used
to receive the news of General Washington's vic-
tories with undisguised satisfaction. One of them,
indeed, boasted that he had drunk the General's
health every night during the course of the war
in America.

To say that you in the United States and we in
Canada have much in common, is a venerable

Department of State Bulletin

platitude. Living as we do side by side on the
same continent, our resemblances are many. We
have, too, similar views on fundamental things.
Among our common characteristics, one of the
greatest, I believe, is our dislike of regimenta-
tion— our respect for the differences which lend
color to everyday existence. We believe that each
man should lead his own life ; that each group of
men should preserve its own customs. It is not
surprising, therefore, that for all that we have in
common, you and we should each preserve certain
habits and traditions which we cherish because
they belong to us. We know it is not your wish to
have on your boi'ders a mere replica of your own
country, but rather a self-respecting community
faithful to its own ways. We are thus better neigh-
bors, because self-respect is the key to respect for
others. On our side of the border you will find a
country in which parliamentary government has
been, we believe, successfully married to a federal
system; a country whose people cherish two
languages and two cultures — English and French;
a land which has inherit^ed from its mother coun-
tries in the Old World many forms and customs
which have been happily fitted into life in the
New. These ways of ours you respect because they
are ours, just as we respect your ways because they
are yours. Thus, in the words of the Treaty of
Amity, Commerce, and Navigation, which laid
the foundation of our present concord as long ago
as 1794, we "promote a disposition favorable to
friendship and good neighborhood."

In Canada we are indeed fortunate in our neigh-
borhood. We have a warmhearted neighbor. This
your people have shown us over the years. There
are countless bodies in this country in which,
through your invitations, Canadians share mem-
bership with their American friends. We ai'e
not unmindful of what we owe to your gi-eat uni-
versities and foundations. Let me say, too, that
we are ever conscious of the warmth of the hos-
pitality we receive when we are your guests.

U.S. Strength Dedicated to Freedom

We have a powerful neighbor. Your massive
strength, economic and military, excites a sense
of wonder at its magnitude. The dedication of
this power to the cause of freedom evokes the
gratitude of all who love freedom everywhere.
Your Canadian neighbors know that when you
assumed the grave responsibilities you bear today,
it was not of your choosing. And for what you
have done, we honor you.

We have a friendly neighbor. There is no need
to enlarge on the traditions of neighborly good
sense which for so long have marked our relations.
We can only hope that they may be reflected else-
where in this troubled world.

We are happy to think that we know you well.
Countless Canadians have personal friends on this
side of the border. Many of us have relatives
here. It is, of course, natural that a small com-

munity should know more of a larger neighbor
than that neighbor knows of it. We are getting
to know each other better as the years pass. We
welcome your visits to us. Often your objective
may be the river or the forest, and we are happy
to offer you a playground. But perhaps you will
let me say that we would not have our visitors
show too strong a preference for those parts of
Canada which are not yet inhabited by Canadians.
We should like you to know our people — what
they do and how they do it. I would not, of
course, suggest that you are unaware of what is
going on in Canada in the field of engineering
and industry for example. Much of our develop-
ment in these spheres, I need not say, is a result
of your confidence in our future. Nowhere has
our recent growth met with warmer acclaim than
in this country. It is true that quite extraordi-
nary things have happened of late in Canada, but
we prefer sober adjectives with which to describe
them. Our expansion has been rapid, but it is
steady and it is built on sound realities. It is
based on the character of our people and on the
quality of our national life. It is based on a
hardihood and spirit of adventure as remarkable
as that shown by our first explorers; on the dis-
ciplined intellect of our men of science seeking
out new horizons of knowledge and usefulness;
on the devotion of our legislators working to ful-
fill the conscious vision of the fathers of our Con-
federation who almost 100 years ago came to-
gether to found a new nation. We believe that
the Canada of today is not unworthy of inspec-
tion. I invite you to come and see us.

Working Together in the International Community

I have talked about oui"selves as your neighbors.
I have said little about ourselves as your partners.
You and we work together in the international
community. Along with kinsmen and friends
across the seas, we are allies in defense of the
things we value. And, if I may say so, I think
that we in Canada, like you, have given proof that
those values must be actively and zealously de-
fended. Thus, in the Far North we are working
with you to strengthen the defenses of this con-
tinent on our territory and on yours. In Korea
there has been, from an early stage, a brigade
gi-oup of Canadian troops. They are now stand-
ing guard against the possibility of renewed at-
tack. Twelve squadrons of the Royal Canadian
Air Force and a further Canadian brigade group
are stationed in Europe. Such formations, I need
hardly say, should naturally be related in our
minds to the size of the population which provides
them.

We are also supplying our European friends
with mutual aid on a considerable scale. Canada,
too, is giving help under the Colombo plan to the
countries of southern Asia. We believe, as you
do, that the problems of our time cannot be solved

May 17, 7954

763

by military strength alone. The line can be held
only by the deployment of force, but the objec-
tive— peace — can be won only by the quality of
infinite patience. In our collaboration, we may
not always agree on every detail of the plans we

must discuss together, but there is no difference
between us on the fundamental aims which we
pursue ; we may differ now and then on the "hows"
but never on the "whys." You may depend upon
us as faithful friends and comrades.

U.S. Economic Relations With Latin America

hy Henry F. Holland

Assistant Secretary for Inter- American Affairs ^

In no part of the country is there greater in-
terest in international trade or a more thorough
and constructive understanding of the factors
that shape it than there is in the New Orleans
area. This being true, you will undoubtedly be
interested in some analysis of the effect on our
economic relations with Latin America of the
Tenth Inter-American Conference recently con-
cluded in Caracas ^ and of the Conference of Min-
isters of Finance or Economy scheduled for Kio
de Janeiro next fall.

At Caracas the attitude of the delegates from
the other American Republics was precisely what
yours or mine would have been under the same
circumstances. They wanted to know the eco-
nomic policy of this Administration as regards
Latin America. They wanted to explain the cor-
responding policies of their own governments.
Finally, they were eager to get down to a con-
structive discussion of what could be done about
specific problems within the framework of those
policies.

At that time, some rather important aspects of
our foreign economic policies were in the process
of being defined. Dr. Milton Eisenhower's re-
port and recommendations,^ drafted after his his-
toric trip through South America, were before
the public. The recommendations of the Randall
Commission * had been published and those of
Senator Capehart were made public during the
coui'se of the Conference. Nevertheless, none of

'Address made before the Mississippi Valley World
Trade Conference, New Orleans, La., on Apr. 29 (press
release 218 dated Apr. 28).

' For a report on the Conference, see Btjij-etin of Apr.
26, 1954, p. 634.

' lUa., Nov. 23, 1953, p. 695.

* lUd., Feb. 8, 1954, p. 187.

764

these had been formally adopted by either the
Executive or the Congi'ess.

On the other hand it was known that by next
fall the President's message on foreign economic
policy ° and his legislative program implementing
it would have been submitted to Congress and
acted upon by it. We therefore made the deci-
sion, which I feel was constructive, that we would
meet again at a Conference of Ministers of Fi-
nance or Economy in Rio next fall. By that time
those important aspects of our own foreign policy
which are now undergoing reexamination should
have been passed upon by the Executive and the
Congress. This will, I am confident, give us a
basis for firm decisions on specific problems.

Wisely, it was decided that we would go ahead
with a full discussion of economic problems at
Caracas. The resulting discussions were beneficial
to all of us. The United States now has before it
a complete statement of those problems which
most concern the other governments. We know
in general how they would like to go about solving
those problems, '\yiiere our own policy was clear
we, in turn, stated frankly the position of our
Government on each of these points. This ex-
change of views will be exceedingly helpful to all
of us in preparing for the Rio conference.

There is much that we can do by way of prepara-
tion. To the greatest extent practical, we must
arrive at a definition of our economic policy in
Latin America. As I have said, the President's
message to Congress of March 30 and the action of
Congress on his legislative program will establish
guideposts for our policy.

That policy we know will not be static. In the
hands of an executive and legislative branch, each
seeking the same goal, it will be susceptible of

• IVid., Apr. 19, 1954, p. 602.

Department of State Bulletin

modification and improvement to meet changing
conditions.

Months in advance of Rio we must sit down with
representatives of each of the American govern-
ments and compare our own policies and programs
with theirs in order to find those areas of agree-
ment in which we can work together constructively.
Without waiting for the conference we must set
ourselves to the task of solving as many as possible
of those bilateral problems that do not require the
combined attention of all the ministers of finance
or economy. There is much to be done between
now and the time when we meet in Brazil.

Our Basic Economic Goal in Latin America

I have referred several times to our economic

policy in Latin America. Its basic goal is clear,

i and we must never lose sight of it. Very simply,

I it is to make our contribution to the establislmaent

I in each of the Latin American countries of a

strong, self-reliant, and durable national economy.

There are two points which I would like to

j make regarding this policy. The first is that while

I the achievement of our goal will undoubtedly help

! greatly in our united effort to eliminate commu-

jnism from this hemisphere, that is not our major

! purpose. As Secretary Dulles said in Caracas, our

! goal would be the same if there were no Communist

problem. Happily, its accomplishment will con-

' tribute to the solution of that problem, but in that

connection we must remember two things.

First, the economic programs of the other Amer-
ican Republics are of a long-term nature. The
I effects of their dedicated efforts are increasingly
j apparent, but full achievement will require a pe-
[riod of years. On the other hand, the need to halt
I the spread of communism here as in every other
American state is immediate.

Second, we all know that economic strength is
not the immediate answer to the Communist
threat. That threat is as great in highly indus-
trialized and prosperous countries as it is in under-
developed countries. There is not an industrial-
ized state in the world which does not have a
Communist problem, and in some the seriousness
of that threat is much greater than in Latin
America. I believe the more immediate answer
to communism lies in a love of personal liberty and
the cherishing of individual initiative. The trutli
is that man finds gi-eater opportunity to live with
dignity and serenity and enjoy steadily increasing
fruits from his own efforts and initiative under a
democratic form of government. Unless we hold
j these beliefs, we are not prepared to resist com-
Imunism, regardless of our standard of living. The
|real answer to communism must be sought in men's
ihearts and minds.

The second of the two points that I wanted to
make is this : As vital to our overall foreign policy
|as will always be the building of strong and im-
perishable bonds of kinship and understanding be-

tween our peoples, even that is not the major pur-
pose of our policy in the economic field. This
understanding is undoubtedly fostered by the ob-
vious fact that the people and Government of the
United States have a genuine interest in the pros-
perity of the peoples of Latin America. But our
policy is based primarily on the deep conviction
that the best interest of our own people will be
served by having strong and prosperous neighbors
to the south of us as there is to the north.

As President Eisenhower pointed out in his mes-
sage to Congress of March 30, an expanding for-
eign trade is absolutely essential to the sti'ength of
our own economy as well as to that of our neigh-
bors. To the degree that the economies of the
other American Republics become stronger, just so
much more will they contribute to that expanding
foreign trade which is so essential to us all.

The greatest and most immediate justification
for a policy of assisting our neighbors in their re-
solve to strengthen their economies is therefore the
benefit which we as well as they will derive from
achieving that goal — benefits in terms of better
living standards for all our peoples.

As important as our goal of economic strength
for all the Americas is our devotion to two basic
policies which will control all of our efforts to
achieve that goal. First, we must undertake noth-
ing which would have the effect of weakening our
own domestic economy, whose continued strength
is such a vital factor in the prosperity of the free
world. Second, our contribution to strengthen-
ing the economies of the other American Republics
will be preponderantly through means designed to
encourage the establishment of those factors and
the j^ractice of those economic principles which the
test of time has proved responsible for the strength
and durability of our own economy.

The other states comprising this great American
family are sovereign nations. Each has the right
to determine for itself the kind of economic sys-
tem which will exist within its boundaries. Each
will determine the measures it will adopt to make
that economy strong. Our contribution in the
field will be made to progi-ams and policies which
our experience has led us to believe will best
achieve this goal.

We must recognize that there are differences of
opinion as between ourselves and some of the
Latin American countries. Some of them are sin-
cerely convinced that our ideas in this field are not
all sound. That is wholesome. It makes for a
constant and constructive reappraisal of ideas.
Yet in Caracas there was a degree of feeling
among the delegates that it was somehow undig-
nified to disagree openly on these economic sub-
jects; that individuals and nations cannot frankly
disagree in some areas and still remain friends
who cooperate throughout all areas where they
can agi-ee.

If we recognize that every nation must and will
act primarily in the interests of its own people.

May 17, 1954

765

differences in opinion are naturally to be expected.
Prior to Rio we shall work out and make known
to other governments in as great detail as circum-
stances permit the limits of our economic policy.
We hope that the other nations will do the same.
Then, at Rio, we shall see what solutions can be
found for problems falling within areas where our
respective policies are consistent. Where they are
inconsistent, any positive action will presuppose
further study. If any Latin American nation
wants high tariffs to protect its domestic indus-
tries, we must respect ttiat conviction, even though
we may feel that it is prejudicial to their interests
in the long run. By the same token, if we feel
that our best interests and theire will be served by
a reciprocal reduction in trade barriers, they
should give our view the same resjiect that we give
to theirs. Each of us must concede the good faith
of tlie other's opinion and his right to have it. We
cannot change the convictions of our neighbore by
quarreling.

Economic Principles Underlying Our Own Economy

What are the factors and the principles on
which we believe the strength of our economy
depends? TJiose wliich in the aggregate bear the
familiar name of tlie private enterprise system.
Even highly developed industrialized democracies
have had unhappy experiences with their basic
industries wlien they experimented with national
socialism. Russia's extensive adventure with
collectivism has acliicved only substandard living
levels, inferior mci-chandise and services, higli pro-
duction costs, inadequate systems of transporta-
tion, and an inability to meet domestic and foreign
financial obligations. Theirs is an economy in
which all of the processes of production, market-
ing, and consumption function because of police
order and not because the personal interests of
the people engaged in them are thereby served.

States are and should be free to pursue their
destinies by the routes which they select. How-
ever I believe history will eventually record that
mankind is emej-ging from a period of worldwide
experiment which has demonstrated that enlight-
ened and socially conscious private enterprise
affords to mankind the greatest hope of achieving
his timeless aspirations to better his living stand-
ard and that of his fellows.

What are these principles which in the aggre-
gate comprise the private enterprise system ? One
is our conviction that governments, save in un-
usual situations, should stay out of business,
whether as producers, manufacturers, trans-
porters, or marketers.

No generality is always accurate, but generally
businesses operated by governments are not com-
petitive, profitable, or stable. They are inher-
ently vulnerable to management policies designed
to achieve aims other than business objectives.
They fail in the purpose which every business

766

must constantly pursue to survive in a system
of private enterprise, i.e. to furnish a superior
jjroduct or service and at a competitive price.

Thus we will be reluctant to participate inj
programs under which governments will engage
directly or indirectly in industries into which
private enterprise, whetlier domestic, foreign, or
mixed, is willing to venture.

The second principle to which we shall be stead-
fast is that the role of government should gen-
erally be that of creating conditions favorable to
private capital and private enterprise. The limits
of accomplishment for private enterprise have
been enormously expanded. Through ])ublic of-
ferings of debt and equity securities wliich unite
thousands of individually small investments and
widely diffuse risks, it is possible to assemble
massive capital resources for adventures of such
scope, of such long term, and of such speculative
nature that there are today but few enterprises
on which a government would be justified in em-
barking in the interests of its peo})le on the
assumption that private capital would not be
available.

Private capital will not enter, however, except
where certain basic conditions favorable to its
success are present. Some of these conditions lie
beyond the control of goverinnents. But others
lie within their power to grant or deny.

The more important of these conditions, of
course, include guarantees of property rights,
guarantees of contract rights, guarantees of an
opportunity to earn a reasonable rate of return,
particularly in businesses such as public utilities
where profits are controlled by governments.

As regards property rights, no investor will
knowingly enter a country unless there is reason-
able certainty that the properties resulting from
the investment will not be expropriated without
the jiaymcnt of prompt, adequate, and effective
compensation. In fact, no investor is likely to
invest in a country if he has reason to believe tliat
his investment is likely to be expropriated, for no
businessman anywhere will put liis money into a
business in which he fears that he may lose his
investment.

To the investor, governmental respect for con-
tract rights is on a par with property rights.

The opportunity to earn a reasonable return on
its investment is the prize for which private enter-
prise strives at home and abroad. Private enter-
prise generally requires no goverinnent guarantee
of a reasonable return. But it does demand as-
surance that governments will not take actions
which will make a reasonable return impossible.

Historically, the development of an industrial
economy requires high initial rates of return to
compensate for unusual risks in the early stages,
Then, as industries become established, as the pub-
lic acquires confidence in government, as local caj)-
ital is generated, competition forces down the rate
of return on both debt and equity investments,

Departmenf of Sfate Bulletin

The rate earned by government securities always
marks the lowest level in every healthy economy.

The rate necessary to attract domestic invest-
ment capital in Latin America, an area where in-
dustrialization is in an earlier stage than here, is
approximately that which prevailed in this coun-
try in the same period of our own industrial de-
velopment. It is higher than that prevailing in
this country today. Eventually it should be about
the same.

Especially in industries whose rate of return is
fixed by government, the Latin American coun-
tries must, if they would bring out their own do-
mestic private capital, afford assurances of an
opportunity to earn a rate of return which is rea-
sonable when judged by standards prevailing in
their own economies and not by standards prevail-
ing in the United States. Any policy of allowing
a rate of return no higher than those prevailing
in the United States effectively destroys the pos-
sibility of attracting investment capital from
sources within the country. A policy which dis-
courages the entry of purely domestic capital into
government-regulated utilities delays and ob-
structs the formation of a strong, self-supporting
national economy.

Freer and Expanding Trade —
Reduction of Trade Barriers

Of the factors which together explain the degree
of prosperity and economic strength that exists
here, not the least is that the United States is one
of the largest free trade areas in the world.

Every industry logically locates its operations
at that point within the trade area accessible to
it where local factors offer the greatest assurances
of producing a good product at competitive prices.
The greater the area accessible to the industry, the
greater the probabilities of encountering a loca-
tion affording maximum access to raw materials,
labor supply, power, means of transportation, a
market, etc. A great industry has never grown
up in the absence of a great market.

This administration is fully aware of the im-
practicability of any move by the American Re-
publics to establish free trade througliout the
Americas. It is convinced, however, that a policy
of reciprocal adjustment of trade barriers affords
maximum assurance of economic strength and sta-
i bility not only to our own people but to the peo-
ples of the other American nations and to all
nations.

As President Eisenhower said in his message to
Congress of March 30:

. . . we and other free nations are stlU severely limited
by the persistence of uneconomic, manmade barriers to
mutual trade and the flow of funds among us.

Together we and our friends abroad must work at the
task of lowering the unjustiflable barriers — not all at
once but gradually and with full regard for our own
I Interests. In this effort, the United States must take the

initiative and, in doing so, make clear to the rest of the
world that we expect them to follow our lead.

There is natural opposition both at home and
abroad from those elements whose personal busi-
ness interests would be prejudiced by such a
program.

There are also sincere but (we feel) misguided
thinkers in the other American nations who argue
for retention of high Latin American tariff bar-
riers but for a reduction of our own. They argue
that the development of their own extractive and
manufacturing industries is dependent upon ac-
cess to the great market of the United States and
that we should therefore reduce our tariffs. If
we would see their producing industries grow
strong we must afforcl them this access by reduc-
ing our tariff barriers. In this argument they
are entirely sound.

Yet when it comes to their own tariff barriers,
these same men with great sincerity argue that
their local industries cannot compete with those
of the United States and should therefore be pro-
tected by high tariff barriers of whose existence
we must not complain.

We cannot share that view. We believe that
the greatest benefit for the greatest number of
people in all countries lies in a reasonable, or-
derly, and reciprocal reduction of trade barriers.

The geographical location of an industry is con-
trolled by a combination of factors such as
proximity to raw material, to sources of labor,
to power of a type usable in the industry, to means
of transportation, and to the market. Obviously,
given the many instances in Latin America where
all of these factors are favorably related to each
other, many industries would be established
throughout Latin America if they but had as-
surance of access to a broader market for the prod-
ucts of their plants. Such industries could make
a real contribution not only to the economies of
the countries in which they were situated but to
the economies of other countries of the world.
Such industries could be established and grow in
Latin America, as elsewhere, under a worldwide
policy of orderly and reciprocal reductions in
trade barriers.

Need for Firm Currencies

One of the basic features of a strong economy
is a firm local currency whose domestic purchasing
power does not fluctuate widely or unpredictably.
Where it exists, prices will remain relatively
stable. There is confidence in the promises of the
government to meet its financial obligations.
Government bonds maintain their purchasing
power. Funds needed for investment will stay at
home rather than seek safety abroad. There is
investment in business and in securities issued to
generate capital for industry rather than in real
estate.

May 17, 1954

767

I do not mean to suggest that price increases are
not sometimes inevitable. A government, how-
ever, can increase or decrease tlie supply of its
money, thereby influencing its value. Inflation is
a device that is always dangerous, especially if
used often. Confidence in the f^overnment may
be lost. It may not be able to sell its bonds at an
advantageous price. People lose the incentive to
save, for the real value of their savings may
diminish sharply. Capital available for produc-
tive investment simply is not accumulated. Cur-
rency may flow abroad rather than be invested at
home, and such funds as are kept at home may be
literally driven into the ground — invested in real
estate or other tangible assets because people
mistrust the currency and are afi'aid to accept an
obligation expressed in monetary terms.

These, then, are some of the principles for which
our government stands in the economic field. As
I have said, they are reflections of our conviction
that private enterprise and private capital are
the wellsprings of economic strength and stability.

Need for a Long-Term Policy

There is a great need today for us and the other
American Republics to develop long-term eco-
nomic policies and, to the extent that they are
consistent with each other, integrate them for our
common advantage.

The first and most obvious benefit is of course
the fact that such policies facilitate both private
and government planning. Most private and
many public industrial programs are financed
through the placement of long-term securities.
Such securities enjoy only a limited market unless
investors have reasonable assurance that basic
government policies prevailing at the time of issu-
ance will remain essentially unchanged through-
out the life of the security.

During the war years economic policies both in
the United States and abroad were necessarily
formulated under emergency conditions and were
subject to sudden and extreme changes. This un-
avoidable circumstance worked great hardships
upon business in all countries. Businessmen, how-
ever, patriotically bore these hardships with a
minimum of complaint.

Despite the dislocations brought about by the
Korean conflict and the cold war, conditions are ap-
parently becoming more stable. The vast recon-
struction and aid programs necessary to revive
war-torn areas are of diminishing importance.
Industry throughout the free world is approaching
or has exceeded prewar levels. Programs for na-
tional defense, while vastly more burdensome than
before the war, are assuming more or less uniform
annual levels.

We can and therefore should seek to establish
long-term economic policies.

It is important, too, that the policies we adopt
be clearly defined and carefully explained to every-

one affected. In Latin America there is some justi-
fiable confusion as to just what our economic poli-
cies in that area may be. The effect abroad of the
confusion to which I have referred was apparent
at Caracas.

Latin Americans are realistic thinkers. They
plan in terms of what can be accomplished and
not in terms of what might theoretically be desir-
able. If in the course of developing their own
plans and policies they have befoi-e them a clear
statement of our own policies, then, insofar as
their planning involves us, it will be adjusted to
those policies in a very logical manner. If, on
the other hand, our own position is not known,
then, and inevitably, policies, resolutions, and pro-
posals are advanced on matters affecting the
United States, and in which we cannot participate.
The resulting disappointment and feeling of
frustration needlessly strains our international
relations.

Therefore, if this is a propitious time for the
development of long-term economic policies and if
we are to have an opportunity at Rio to identify
and agree upon those parts of our economic poli-
cies that prove generally advantageous, then,
surely, one of our most constructive moves would
be to announce our own convictions on the subject
as far as possible in advance of Rio. This will
permit the Latin American economists to think
in terms of what is practically achievable insofar
as their plans and programs relate to anticipated
action on the part of the United States. We would
hope that the Governments of our sister republics
might follow a similar course.

Another obvious advantage of having a reason-
ably clear foreign economic policy is that it
gi-eatly simplifies our own task of meeting and
disposing of problems arising in this field.

Positive Features of Our Inter-American
Economic Policy

Now let us consider what px'ogress has been
made thus far by the Latin American Republics in
establishing their economies upon a sound basis,
the form which United States assistance has taken
in the past, and the contribution which we may be
prepared to make in the future.

The rate of industrial progress in Latin America
in the postwar period has been little short of
phenomenal, even after adjustment of gross pro-
duction figures to a per-capita basis and with
adjustment for price changes. Population is in-
creasing in Latin America at a rate of 2 to 2.5 per-
cent per year — more rapidly than in most other
areas of the world.

Output of goods and services has been increas-
ing even faster. The per-capita rate of increase
since the war has been 3.5 percent per year. Not
all of this has gone into increased consumption.
Living standards have been raised appreciably.
But the rate of capital accumulation during this

768

Department of State Bulletin

period has also been exceptionally intense, the
investment rate approximating 16 percent of the
total national income. The stock of capital per
worker has risen, on the average, from $1,177 in
1945 to $1,491 in 1952, an increase of more than
25 percent. The outstanding feature of this de-
velopment has been the expansion in manufac-
tures. Value of manufactures increased from $6.8
million in 1945 to $11.4 million in 1952, an in-
crease of better than 70 percent in 7 years. The
value of manufactures surpassed the value of
agricultural output in Latin America in 1947 for
tlie first time and has outranked it ever since.

The use of averages tends to obscure the rapidity
of the advance which has been made in such fields
as construction and iron and steel production. For
example, capacity for steel ingot jiroduction in
Latin America had risen to over 1.5 million tons
by the end of 1952, an increase of over 100 percent
in 5 years. Cement production has shown an
equally high rate of increase. The paper indus-
try, especially in Brazil and Mexico, has also
grown rapidly. There has been a considerable in-
crease in the production of basic chemical prod-
ucts, synthetic fibers, fertilizers, and antibiotics.

This really remarkable rate of economic prog-
ress in Latin America has been very largely fi-
nanced out of Latin America's own resources. It
is estimated that over 90 percent of the resources
that have gone into economic development in Latin
America during this period have been derived
from their own savings. The remainder has been
supplied by foreign investors, private and public.

Latin America's economic relations with the
United States in both of these fields are significant.
Private investment has flowed into Latin America
from the United States since the end of the Second
World War at the average rate of around $250
million per year. In addition, American compa-
nies have reinvested earnings at the average rate
of approximately $190 million per year.

The United States Government has supple-
mented this flow of private capital. During the
period since the Second World War the Latin
American countries have been receiving loans
through the International Bank, of which we are
a member, and our own Export-Import Bank on a
net basis (loans less repayments) at the rate of
$93 million per year, of which the Export-Import
Bank has provided about 75 percent.

Our Government has also assisted through its
technical cooperation program. This program,
although small in relation to the total capital in-
vested in the area, has been substantial and has
helped to point the way to further development.
The United States has appropriated $163 million
for this program since it was first begun. Of
greater significance than the financial outlay is the
fact that it has helped, through setting up demon-
stration projects, to show how progress can be
made under local leadership through the utiliza-
tion of modern technology.

Measured by almost any standard the rate of
economic progress in Latin America since the
war is one of the highest in the world, and sub-
stantially exceeds our own. Despite this amaz-
ing rate of progress, it is true that Latin America
has not yet in a span of a very few decades achieved
that degree of economic development which was
the result of a century and a half or more of slower
progress in other parts of the world. But this
should be no cause for disappointment. It is true
that progress has not been uniform, but it is safe
to say that seldom in history has so large an area
progressed at such a rate in so short a time. Yet
the people of Latin America, far from being satis-
fied with these achievements, are determined to
surpass them. To that effort we shall contribute
with enthusiasm. That determination that still
greater things must lie ahead is the genius of this
new world.

The great progress in Latin America in recent
years has, nevertheless, been overwhelmingly due
to the genius, industry, and capital of the Latin
Americans themselves. The accomplishments of
the past 15 years furnish convincing evidence of
what can be achieved in the future. Judged by
any standard, it is abundantly apparent that the
economy of Latin America is on the march and
that a great and satisfying future lies ahead of
its people and of their children.

I have been asked why, if we recognize a pecu-
liar relationship with Latin America, we have
never established for it anything comparable to
the Marshall plan. This question comes from
those who understandably point to our vast ex-
penditures in those areas of the world which were
either devastated by war or which are today criti-
cal in a military sense, and ask why we have not
made comparable expenditures within our own
family of American nations.

There has been no Marshall plan for Latin
America and I pray that a need for one will never
exist. Latin America has not been devastated
by either of the two ^'orld wars, nor is it todaj^
threatened by the armed forces of Communist
Russia or China. Instead, its position is precisely
that of the United States. Together with Canada
we comprise the most privileged area of the world,
an area still relatively safe from all but air at-
tack; an area where men and women enjoy per-
sonal freedoms existing only in isolated areas
elsewhere in the world. Yet we in this hemi-
sphere, and precisely because of our privileged
situation, must shoulder a great part of the finan-
cial burden of liberating the rest of the world
from the Communist threat. All such expendi-
tures are of an essentially security nature. They
have at times taken the form of grants for the
reconstruction of devastated industries. Their
innumerable other forms are familiar to all of us.
Their basic purpose has uniformly, however, been
to contain and push back the forces of communism.

May 77, 7954

769

Thus far the United States, on behalf of the
entire family of American Republics, has borne
most of that financial burden. However, by their
contributions to United Nations programs, by
their refusal to sell strategic materials behind the
Iron Curtain, our sister American Eepublics are
showing their wish to participate in this financial
burden, each in proportion to its own ability.

We thank God that our programs of aid to Latin
America are of a very different nature than the
Marshall plan. They were undertaken long be-
fore that plan and other forms of aid similar to
it were developed. Before the world Communist
conspiracy was recognized as the menace which it
is, we were dedicated to the policy of contributing
to strengthening the economies of the other Ameri-
can Eepublics. We shall still be dedicated to
that policy when the Communist menace has dis-
appeared.

What Is and Should Be Our Contribution
in the Economic Field?

I come now to the question, all-important to ns,
of what is today and what should be the contribu-
tion of this Government to that great crusade
toward industrialization and expanding commerce
that is going on throughout Latin America, and
whose achievements have been so notable.

Vast sums of capital have been productively in-
vested in Latin America in the past 2 decades.
Opportunities for further equally productive in-
vestment are enormous. However it is important
that we not overlook the gratifying fact that, as
great as are these opportunities for investment,
the reservoirs of available Latin American and
foreign private capital available for investment
in the other American Eepublics greatly exceed
the total of these opportiniities. It is no exaggera-
tion to say that the amounts of private capital
that could be made available from domestic and
foreign sources for investment in Latin America
are many times greater than the sums of invest-
ment capital that could possibly be absorbed pro-
ductively in the area at present.

That capital will venture itself when and to the
degree that the reassuring conditions to which I
have referred are established and assured in the
areas of investment. That, of course, is a matter
lying entirely within the jurisdiction of the various
interested governments.

In saying these things I am not overlooking the
fact that there are important fields in which new
investment will contribute effectively and immedi-
ately to our common goal but into which we must
recognize that private capital will not venture
even under favorable conditions. It is to our in-
terest that we make capital available for invest-
ment on a sound basis in these fields. As Presi-
dent Eisenhower stated in his message of March
30 to which I have referred, the International
Bank for Eeconstruction and Development will

770

be the primary institution of this type of public
financing. Nevertheless, he said, and I consider
this exceedingly important:

The Export-Import Bank will consider on their merits
applications for the financing of development projects
which are not being made b.v the International Bank, and
which are in the special interest of the United States, are
economically sound, are within the capacity of the pro-
spective borrower to repay and within the prudent loaning
capacity of the bank.

Thus, if the policies and actions of our respec-
tive governments are sound and enlightened, those
quantities of investment capital which are needed
and which can be constructively absorbed will be
available in Latin America.

More important than the creation of new indus-
tries and other sources of economic strength is the
effective exploitation and utilization of the vast
assets now available in Latin America. It is ele-
mental that the existing economy to which addi-
tions are made through new investment should be
sound and well administered.

In this all-important field we hope that our
technical assistance programs will make an effec-
tive contribution.

As I have said, access to ever-widening markets
is essential to the establishment of new industry
and the growtli of those already existing. One of
the most important contributions of our govern-
ment and of this Administration would be to join
in an effective and orderly program designed to
give foreign industry greater access to markets not
only in the United States but in other countries as
well. We feel that this can be best achieved
through a program of reciprocal reduction in
trade barriers.

In closing, I want to repeat something that I
have touched on several times earlier in this talk.
As great as is our desire to contribute effectively
to the establishment of strong and self-reliant
economies elsewhere in this hemisphere, the pri-
mary responsibility in that field lies upon the na-
tions involved. It is primarily through their
foresight, industry, and self-discipline that this
goal will be achieved. I found complete and cou-
rageous realization of this fact at Caracas. The
credit for their great achievements in the past and
for those whicli lie ahead belongs overwhelmingly
to the Latin American peoples themselves.

Negotiations Witli Japan

Press release 225 dated May 3

The Department of State announced on May 3
that agreement has been reached with the Govern-
ment of Japan to commence negotiations for the
settlement for economic aid rendered to Japan
during the occupation. Talks will begin at the
Ministry of Foreign Affairs in Tokyo on May 11.

Deparfmenf of State Bulletin

Promoting the United Nations
as an Instrument of Peace

i'li ss release 232 dated May 5

Following is the text of a letter from the Pres-
',lnit to Morehead Patterson, Chmrman, United
^ fates Committee for United Nations Day:

Mat 4, 1954
Dear Mr. Patterson :

Please give my warm greetings to the mem-
bers of the United States Committee for United
|Nations Day. I am very happy to learn that
jSO many important national organizations are
limiting to promote the United Nations as a vital
instrument of peace, security, and mutual under-
standing.

The flame lighted in San Francisco nine years
iago was intended to marlv the path of all man-
ikind toward the common goal of freedom and uni-
versal peace. The hope and faith symbolized by
ithat flame must derive their strength from more
ithan material things. That strength must come
Ifrom tlie hearts and minds of the world's people,
as well as from the resources of governments and
itheir treasuries.

In your dedicated eflForts to keep this flame —
ithis hope and this faith — burning brightly among
our countrymen, you have my earnest wish for
success.

Sincerely,

DwiGHT D. Eisenhower

lU.S. Delegations to
jlnternational Conferences

World Health Assembly

The Department of State announced on May 1
I (press release 221) that the United States will be
represented at the Seventh Session of the World
Health Assembly, to convene at Geneva on May 4,
by the following delegation :

Dr la/at es

Chester S. Keefer, M.P. (Chairman), Special Assistant for
Healtli and Medical Affairs, Department of Health,
Education, and Welfare

Lionard A. Scheele, M.D., Surgeon General, Public Health
Service, Department of Health, Education, and Wel-
fare

Harold M. Erickson, M.D., Oregon State Board of Health,
Portland, Oreg.

I Alternate Delegates

' Frederick .1. Brady, M.D., International Health Repre-
sentative, Division of International Health, Public
Health Service, Department of Health, Education, and
Welfare

Howard B. Calderwood, Specialist in International Organ-
ization, Office of United Nations Economic and Social
Affairs, Department of State

Advisers

Sheldon S. Brownton, Colonel, MC, XTsaf, Executive A.s-
sistant to Assistant Secretary of Defense (Health and
Medical), Deiiartment of Defense

Harold S. Diehl, M.D., Dean, University of Minnesota
Medical School, Minneapolis, Minn.

John Hanlon, M.D., Chief of Pulilic Health Division, Offic-e
of Public Services, Foreijni Operations Administration

Harold Hillenbrand, D.D.S.. Secretary, American Dental
Association. Chicago, 111.

Frank M. Stead, Chief, Division of Environmental San-
itation, California State Department of Public
Health, San Francisco, Calif.

Mrs. Nell Hodgson Woodruff, 3640 Tuxedo Road, Atlanta,
Ga.

Lawrence Wyatt, Public Health Research Analyst, Office
of International Health Reprp.«entative, Division of
International Health, Public Health Service, Depart-
ment of Health, Eeducation, and Welfare

Special Assistant (Administrative and Budgetary
Matters)

Carolyn C. Laise. Division of International Administra-
tion, Department of State

Secretary of Delegation

Robert E. Read, Economic Officer, American Embassy,
Stockholm

Administrative and Documents Officer
John F. Jason, Resident U.S. Delegate to International
Organizations, Geneva

The World Health Assembly is the supreme
authority of the World Health Organization
(Who), a specialized agency of the United
Nations. It meets in regular annual session and
determines the policies of the Organization.

At the present time, the governments of 81 coun-
tries are members of the Who, while the govern-
ments of three countries are associate members.
The work of the Organization embraces interna-
tional programs on a wide variety of public health
questions : the control and eradication of commu-
nicable diseases ; measures for the improvement of
maternal and child health; mental health and
occupational health ; the provision of advice and
assistance to national governments in developing
and encouraging the application of higher stand-
ards in respect to such activities as nursing, pub-
lic health administration, and professional edu-
cation and training. In addition, the Who
undertakes or participates in technical health
work of international significance through estab-
lishing biological standards, determining the ad-
diction-producing properties of drugs, exchang-
ing scientific information, preparing international
sanitary regulations, revising the international list
of diseases and causes of death, and collecting and
disseminating epidemiological i n f o r m a t i o n.
Through its field programs, the Who also assists
governments in the control of various diseases.

Besides reviewing the work of the Who, the par-
ticipants in the Seventh World Health Assembly

May 17, 1954

77\

will deal with such questions as the rights and ob-
ligations of associate members ; the program and
budget of Who for 1955 ; amendments to increase
the size of the Who Executive Board, and to pro-
vide for its equitable, geogi-aphical distribution;
Who responsibilities under narcotic conventions;
and the nonproprietary names of drugs. The
delegates to the Assembly will also have an oppor-
tunity to participate in technical discussions on
the topic "Public-Health Problems in Rural
Areas."

(b) steps taken by the Office to follow up the
studies and inquiries proposed by the Committee,

(c) recent events and developments affecting sal-
aried employees and professional workers; (2)
unemployment among salaried employees and
professional workers; and (3) conditions of em-
ployment of teaching staff.

Twenty countries will be represented by delega-
tions composed of two government representa-
tives, two employers, and two workers. In addi-
tion, 31 international nongoverimiental organiza-
tions are expected to be represented by observers.

ILO Advisory Committee on Salaried Employees
and Professional Workers

The Department of State announced on May 8
(press release 240) that the United States will be
represented at the third session of the Advisory
Committee on Salaried Employees and Pi-ofes-
sional Workers of the International Labor Organ-
ization, to be held at Geneva from May 10 to 22,
by the following delegation:

Representing the Oovernment of the United States

Delegates

William R. Curtis, Special Assistant to the Director.

Bureau of Employment Security, Department of

Labor
Calen Jones, Director, Instruction, Organization, and

Services, Office of Education, Department of Health,

Education, and Welfare

Representing the Employers of the United States

Delegates

A. Boyd Campbell, President, Mississippi School Supply
Company, Jackson, Miss.

Robert S. Dunham, Assistant General Manager of Indus-
trial Relations, Ford Motor Company, Dearborn,
Mich.

Adviser

Joseph W. Goodrich, European Personnel Representative,

Ford Motor Company, A-B Stockholm, Frihamn,

Sweden

Representing the Workers of the United States

Delegates

Howard Coughlin, International President, Office Em-
ployees International Union, Washington. D. C.

Russell M. Stephens, President, American Federation of
Technical Engineers, Washington, D. C.

The Advisory Committee was established by the
Governing Body of the International Labor Office
at its 101st Session (March 1947), to deal with
questions concerning salaried employees and pro-
fessional workers. Its 1st Session was held at
Geneva in October 1949, and the 2d at Geneva in
February 1952.

The agenda for the 3d Session of this Commit-
tee, as fixed by the Governing Body at its 122d
Session (Geneva, May-June 1953), is as follows:
(1) general report, dealing particularly with (a)
action taken in the various countries in the light of
conclusions of previous sessions of the Committee,

Interests in Enemy Property
Seized or Blocked in Norway

Press release 216 dated April 27

Notice is hereby given of the entry into force
on April 27, 1954, of the Norwegian-United
States Agreement on Conflicting Claims to Enemy
Property of June 21, 1952. This agreement pro-
vides, inter alia, for the protection of indirect
American interests in property in Norway which
has been seized or blocked as "enemy."

The annex of the agreement concerns the cases
of certain known American claimants with re-
spect to property held by them through subsidiary
enterprises in Germany. The Department of
State will communicate with these American
claimants and advise them of the procedure to be
followed for securing from the Norwegian Enemy
Property Custodian the release of the property
claimed by them.

In addition, the agreement provides for pro-
tection if any new claims of a similar nature
should come to light. The Department urges
American claimants, having indirect interests in
property in Norway which has been seized or
blocked as enemy, to bring these claims forthwith
to the attention of the Department, if the claims
have not heretofore been submitted.

Military Assistance to Iraq

Press release 213 dated April 26

In March 1953 the Government of Iraq ap-
proached the U.S. Government with a request for
military assistance in order to strengthen its forces
for the defense of its territory against possible
aggression. In requesting assistance to enable it

772

Department of Slate Bulletin

to defend its independence, the Government of
Iraq linked this objective with the defense of the
vital resources of the free world. The request of
the Government of Iraq has now been favorably
acted upon by the United States and an under-
t-ianding reached. The President's statement of
February 25 ^ gives general background on the
subject of United States policy with respect to
U.S. military assistance to certain countries of the
Near and Middle East.

The understanding reached between the two
Governments was effected by an exchange of notes
in Baghdad on April 21. Included in the under-
standing is a provision that "assistance will be
provided subject to the provisions of applicable
legislative authority and will be related in char-
acter, timing and amount to international develop-
ments in the area."

Current Actions

Ratifications deposited: Australia (including Papua, Nor-
folk Islands, New Guinea, and Nauru), March 22, 1954; '
Union of South Africa and Territory of South West
Africa, March 29, 1954.

Trade and Commerce

Declaration on the continued application of the schedules
to the General Agreement on Tariffs and Trade (TIAS
1700). Done at Geneva October 24, 1953. TIAS 2886.

Signature: Peru, April 26, 1954.

Third protocol of rectifications and modifications to the
tests of the schedules to the General Agreement on
Tariffs and Trade (TIAS 1700)." Done at Geneva
October 24, 1953.

Signature: Australia, March 18, 1954.

War

Geneva convention for the amelioration of the condition

of the wounded and sick in armed forces in the tield ;
Geneva convention for the amelioration of the condition

of the wounded, sick and shipwrecked members of the

armed forces at sea ;
Geneva convention relative to the treatment of prisoners

of war ;
Geneva convention relative to the protection of civilian

persons in time of war.

Dated at Geneva August 12, 1949."
Adherence deposited: Liberia, March 29, 1954.
Ratification deposited: Turkey, February 10, 1954.

MULTILATERAL
Commodities — Sugar

International sugar agreement.' Done at London under
date of October 1, 1953. Advice and consent to ratifica-
tion given by the Senate April 28, 1954. Ratitied by the
President April 29, 1954.

Ratification deposited: United States, May 3, 1954.

Shipping

Convention on the Intergovernmental Maritime Consulta-
tive Organization." Signed at Geneva March 6, 1948.
Ratified by the President with a reservation and under-
standing July 11, 1950. United States ratification de-
posited August 17, 1950.

Signatures, subject to acceptance: Liberia, March 9, 1954;
Honduras, April 13, 1954.

Acceptance: Egypt, April 5, 1954.

Slave Trade

Protocol amending the slavery convention signed at Geneva
on September 25, 1926 (46 Stat. 2183), and Annex.*
Done at New York December 7, 1953.

Signature: Denmark, March 3, 1954.

Acceptance deposited: Finland, March 19, 1954.

Telecommunications

International telecommunication convention." Signed at

Buenos Aires December 22, 1952.
Accessions deposited: British West Africa, December 29,

19.53 ; El Salvador, January G, 19.54.

' Bulletin of Mar. 15, 1954, p. 401.

' For information regarding provisional entry into force,
see BtiLLETiN of Apr. 5, 1954, p. 525.
' Not in force.
* Not in force for the United States.

BILATERAL

Belgium

Agreement amending paragraph 2 A (1) of the memo-
randum of understanding regarding the settlement for
lend-lease, reciprocal aid, Plan A, surplus property and
claims of September 24, 1946, as amended (TIAS 2064
and 2070). Effected by exchange of notes at Washing-
ton January 20 and April 2, 1954. Entered into force
April 2, 1954.

El Salvador

Agreement providing for the reciprocal abolishment of
certain visa fees and tourist and immigration charges.
Effected by an exchange of notes at San Salvador Dec.
7 and 15, 1953. Entered into force January 14, 1954.

Japan

Mutual Defense Assistance Agreement. Signed at Tokyo
March 8, 1954.
Entered into force: May 1, 1954.

Agreement regarding the purchase of agricultural com-
modities, with agreed official minutes. Signed at Tokyo
March 8, 1954.
Entered into force: May 1, 1954.

Agreement on economic arrangements, with agreed offi-
,cial minutes. Signed at Tokyo March 8, 1954.
Entered into force: May 1, 1954.

Agreement regarding guaranty of investments, with re-
lated exchange of notes. Signed at Tokyo March 8,
1954.
Entered into force: May 1, 1954.

Nicaragua

Military assistance agreement. Signed at Managua April
23, 1954. Entered into force April 23, 1954.

" Ratification included reservations made at time of
signing.

May 17, 1954

773

THE DEPARTMENT

Departmental Inspection Service

Department Circular 95 dated April 15

I have establishpd the function of Inspection of the
Department and of the Foreign Service in the Bureau of
Inspection, Security, and Consular Affairs. I wish it to
operate as a necessary extension of my office and to pro-
vide a means of closer communication between myself and
all my associates in the Department of State, at home and
abroad.

The Department has had for many years, of course, a
Foreign Service inspection system, and our people abroad
are aware of its valuable function. In addition to insur-
ing that the Departmenfs regulations are being adhered
to, it has been providitig an opportunity for the employees
attached to missions and consulates to transmit directly
to me, to the Under Se<retary, and to the other top otiicials
of the Department their ideas which have been and are
most necessary and valuable to the continued improve-
ment of the service. FI will continue to be administered
separately, as in the past, and as are the several offl tes
concerned with consular functions and security. They will
be .subject to the general supervision of the Administrator,
■SCA.

I am aware that no agency of the Government can im-
prove, or even maintain, its level of effectiveness unless
it is receiving a stream of new ideas and constructive criti-
cisms. I hope tliat the inspection operation will be the
focal reception point of that stream. I have told Mr.
McLeod that in his capacity as administrator of the in-
spection operation he should be available at any time to
receive i>ersonally from any of our people the benefit of
their thinking on improving operations and procedures or
on other problems, offl ial and personal.

In brief, I regard tlie internal inspection operation of
the Department as one of its most important concerns.
Its success will depend upon the cooperation and aid re-
ceived .generally from cmplo.vees of the Department.

It is my wish that tlie reorganization of the inspection
arm will work tn the continued benefit of all employees of
the Department of State and toward more effective and
economical performance of our responsibilities.

John Foster Dulles

Retirement of Isaac Edwards

Tlie Department of State announced on May 5
(press release 233) the retirement of Isaac
Edwards, effective April 30. Mr. Edwards had

served for 51 years and 9 months, one of the longest

Seriods of service in the history of the Department,
lis total period of Government employment was
5414 years.

Mr. Edwards was born in Chester, Pa., on April
26, 1882. He attended school in Washington and
at the age of 17 took a position as laborer with the
War Department on October 9, 1899. On August
5, 1902, he was transferred to the Department of
State and assigned as a messenger in the ofiice of
Assistant Secretary of State Alvey Adee. He re-
mained in Mr. Adee's office for over 20 years until
the death of Mr. Adee. Stories are legion of the
diplomatic finesse attained by Mr. Edwards under
the tutelage of Mr. Adee, particularly in the deli-
cate handling of diplomatic representatives un-
friendly to each other whose visits to the Depart-
ment happened to coincide.

Mr. Edwards served under every President since
Theodore Roosevelt and every Secretary of State
since John Hay.

Mr. Edwards received two silver loving cups
presented to him in 1930 by the Eastern European
Division and in 1952 by the Office of Foreign
Buildings Operations for his long and faithful
.service. He holds the distinction of being one of
the first persons to receive a length-of-service gold
pin at the initial ceremony in 1949. On October
31, 1952, he received a gold and diamond pin
in recognition of his 50 years of service in the De-
partment by Acting Secretary Bruce.

When Mr. Edwards attained the age of 70 in
1952, he was granted a special appointment and
given permission to remain on the rolls as a retired
annuitant.

For text of a letter from Secretary Dulles on the
occasion of his retirement, see press release 233.

Designations

Winthrop M. Southworth, Jr., as Special Projects Officer
to the Assistant Secretary for Public Affairs, effective
April 21.

John C. French as Acting Executive Director to the
Assistant Secretary for Public Affairs, effective April 21.

William P. Hughes as Acting Director, Office of Foreign
Buildings Operations, effective April 22.

774

Department of Stale Bulletin

May 17, 1954

Ind

e X

Vol. XXX, No. 777

American Republics. U.S. Economic Relations With Latin

America (Holland) 764

Canada. The United States and Canada as Neighbors and

Partners (Massey) 762

Economic Affairs

International Bank Report 761

Termination of Pakistan Wheat Program 760

U.S. Economic Relations With Latin America (Holland) . 764
France. The Importance of the European Defense Com-
munity to the Free World (Lodge) 747

Germany. The Foundations of a Democratic Future for

Germany (Conant) 750

India. Economic Assistance to India (Allen) .... 759
Indochina

Fall of Dien-Bien-Phu (Eisenhower) 745

The Issues at Geneva (Dulles, Eisenhower) (map) . . . 739
U.S. Condemns Atrocity by Viet Minh in Cambodia (texts

of notes) 746

International Organizations and Meetings

The Issues at Geneva (Dulles, Eisenhower) (map) . . . 739

Negotiations With Japan 770

U.S. Delegations to International Conferences .... 771

U.S. Goals at Geneva Conference (Smith) 744

Iraq. Military Assistance to Iraq 772

Israel. Immigration Into Israel 761

Japan. Negotiations With Japan 770

Mutual Security

Economic Assistance to India (Allen) 759

Military Assistance to Iraq 772

U.S. Rejects Soviet Proposals for European Security

(texts of notes) 756

Netherlands, The. Netherlands Gives Carillon to United

States 755

Norway. Interests In Enemy Property Seized or Blocked

in Norway 772

Pakistan. Termination of Pakistan Wheat Program . . 760

Presidential Documents

Fall of Dien-Blen-Phu 745

Promoting the United Naations as an Instrucent of Peace . 771
Protection of Nationals and Property. Interests in Enemy

Property Seized or Blocked In Norway 772

Rumania. Symbol of Rumanian People's Fortitude and

Perseverance (Dulles) 755

State, Department of

Departmental Inspection Service (Dulles) 774

Designations. French, Hughes, Southworth 774

Retirement. Edwards 774

Treaty Information

Current Actions 773

Interests in Enemy Property Seized or Blocked in Norway . 772

Military Assistance to Iraq 772

U.S. Condemns Atrocity by Viet Minh in Cambodia (texts

of notes) 746

United Nations

The Importance of the European Defense Community to

the Free World (Lodge) 747

Promoting the United Nations as an Instrument of Peace

(Eisenhower) 771

U.S.S.R. U.S. Rejects Soviet Proposals for European Se-
curity (texts of notes) 756

Name Index

Allen, George V 759

Byroade, Henry A 761

Conant, James B 750

Dulles, Secretary 739, 755, 774

Eban, Abba 761

Edwards, Isaac 774

Eisenhower, President 740, 745, 771

French, John C 774

Holland, Henry F 764

Hughes, William P 774

Kimny, Nong 746

Kortenhorst, L. G 755

Lodge, Henry Cabot, Jr 74T

Martin, Joseph W., Jr 755

Massey, Vincent 762

Murphy, Robert D 746

Smith, Walter B 744

Southworth, Winthrop M., Jr 774

Check List of Department of State
Press Releases: May 3-9

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

Press releases issued prior to May 3 which appear
in this issue of the Bulletin are Nos. 213 of April
26, 214 and 216 of April 27, 218 of April 28, and
221 of May 1.

No. Date

224 5/3 Carillon presented by the Netherlands

(rewrite)

225 5/3 Economic negotiations with Japan

226 5/4 Economic assistance to India

227 5/4 Pakistan's appreciation for wheat

228 5/4 Exchange of notes with Cambodia
♦229 5/4 Patterson nominated to Disarmament

Commission

t230 5/5 Johnston : Near East and the West

231 5/5 Israeli protest

232 5/5 Eisenhower message to U.N. Day Com-

mittee

233 5/5 Isaac Edwards' retirement (rewrite)
t234 5/6 Foreign Relations volume

t235 5/6 Murphy : World brotherhood

236 5/7 Reply to Soviet note of March 31

237 5/8 Dulles: Rumanian anniversary

238 5/7 Dulles : Issues at Geneva
240 5/8 ILO Committee delegation

* Not printed.

t Held for a later issue of the Bulletin.

U. S. 60VERNMENT PRINTING OFFICEi I9S4

THE BERLIN CONFERENCE

the
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of ■

State

A meeting of the Foreign Ministers of the United States,
France, the United Kingdom, and the Soviet Union, John
Foster Dulles, Georges Bidault, Anthony Eden, and Vya-
cheslav Molotov, took place in Berlin between January 25
and February 18, 1954. The major problem facing the
Berlin Conference was that of Germany. Two publications
released in March record discussions at the Conference. . . .

Our Policy for Germany

This 29-page pamphlet is based on statements made by
John Foster Dulles, Secretary of State, at the Berlin meet-
ing. It discusses the problem of German unity, Germany
and European security, and the significance of the Berlin
Conference.

Publication 5408 15 cents

Foreign Ministers Meeting — Berlin Discussions
January 25-February 18, 1954

This publication of the record of the Berlin discussions
of the four Foreign Ministers is unusual in that a substan-
tially verbatim record of a major international conference
is being made available to the public so soon after the close
of the Conference. Included in the record is the report on
the Conference by Secretaiy of State John Foster Dulles,
delivered over radio and television on February 24, 1954.

Publication 5399

70 cents

Please send me copies of

Our Policy tor Germany

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To: Supt. of Documents Foreign Ministers Meeting — Berlin Discussions

Govt. Printing Office January 25-February ?8, 1954

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Vol. XXX, No. 778
May 24, 1954

^eNT o^

THE CHALLENGE TO FREEDOM • Address by Secretary

Dulles 779

GENEVA CONFERENCE BEGINS DISCUSSIONS ON

INDOCHINA • Statements by Under Secretary Smith . . 783

THE NEAR EAST AND THE WEST • by Eric Johnston . 788

THE REFUGEE RELIEF PROGRAM: A CHALLENGE
TO VOLUNTARY SOCIAL AGENCIES • by Frank

L. Aiierbach • • "<

FORCED LABOR BEHIND THE IRON CURTAIN •

Statements by Preston Hotchkis 804

THE NORTH ATLANTIC OCEAN STATIONS

AGREEMENT • Article by Ernest A. Lister 792

For index see inside back cover

Boston Public Library
Superintendent of Documents

JUN15 1954

,^ne z/Je^tct/ytme'nt cl^ t^tate

bulletin

Vol. XXX, No. 778 • Pubucation 5468
May 24, 1954

For sale by the Superintendent of Documents

U. S. Government Printing Office

Washington 25, D. C.

Price:

82 Issues, domestic $7.50, foreign $10.25
Single copy, 2U cents

The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).

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

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the work of the De-
partment of State and the Foreign
Service. Tlie BULLETIN includes
selected press releases on foreign pol-
icy, issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of Stale and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

Publications of the Department, as
icell as legisUitive material in the field
of international relations, are listed
currently.

The Challenge to Freedom

Address hy Secretary Dulles'^

I am honored that you have asked me to take
part in this annual commemoration of Virginia's
Independence Resokition and of the Virginia Bill
of Rights. Today is also Armed Forces Day.
There is a clear relationship between these two
concepts of political liberty and its defense. In-
dependence and human rights seldom persist
merely because they have been proclaimed. They
depend on the willingness and capacity of men to
fight and die, if need be, to preserve them. That
is the particular dedication of our Armed Forces,
and today as we commemorate the historic acts
of the past, we also honor those who stand ready
to defend our present heritage of freedom.

Historic acts, such as occurred here in 1776,
should continuously be remembered. That is not
merely to pay a debt which the present owes to the
past. We owe it to ourselves to keep freshly in
mind the profound wisdom and the great acts of
faith of our forefathers. As was declared in the
Virginia Bill of Rights, "no free government, or
the blessings of liberty, can be preserved to any
people, but ... by frequent recurrence to
fundamental principles."

A great part was played here in Williamsburg
during the first 6 months of 1776. The Independ-
ence Resolution adopted here by the Virginia Con-
vention of Delegates on May 15, 1776, was the im-
mediate prelude to the Fourth of July Declara-
tion of Independence. The Virginia Bill of Rights
adopted on June 12, 1776, led directly to our Con-
i stitutional Bill of Rights.

The course set by Virginia proved in harmony
with the spirit which pervaded all the Colonies,
and it led to the creation on this continent of a
political union inspired by the principles of re-
ligion and dedicated to liberty and justice.

'Made at Williamsburg, Va., on May 15 (press release
255 dated May 14).

May 24, 1954

"The Great American Experiment"

That, in turn, soon had worldwide consequences.
Our Republic produced such rich fruits — spirit-
ual, intellectual, and material — that it became
widely known as "The Great American Ex-
periment."

This happened when the tide of despotism was
high. Czar Alexander and his allies were seeking
to extend their colonial domain and their political
system throughout the world.

At that juncture, the example of our Nation
caught the imagination of men everywhere and
largely inspired them, in their turn, to seek liberty.
So strong was that urge that in the end the despots
had to relax their grip.

There followed a century which brought to many
increased political freedom and a large improve-
ment in economic and social welfare.

Today our Nation faces conditions which are in
certain respects similar to those which we faced
during the early years of our Republic. A tide of
despotism again threatens to engulf the world.

This has come about largely as a penalty for
man's inability to prevent war. The First World
War and the defeat of Russia enabled a small
group of fanatical Communists to gain control of
that great nation. The Second World War en-
abled that group to extend their power to the East
and to the West so that it now dominates 800
million people or one-third of the peoples of the
world. Their rulers are seeking still further to
extend their rule. That is conspicuously the case
today in relation to the 200 million people of
Southeast Asia. Their avowed aim is to bring
all of mankind under the rule of their system.

The United States today is a great and powerful
Nation, able to exercise a far greater material in-
fluence than could the young Republic. But we are
now a matured Nation, and we are rich in mate-
rial things. That makes it harder to exert moral
influence such as we developed during the early

779

days when we were the impecunious revohitionar-
ies. Then our dynamic spirit was unobscured and
seemed to others a torch enlightening the world as
to the values inherent in liberty.

Also, the forces of despotism today are more
formidable than ever before. In the past, aggres-
sive imperialism has most often reflected the am-
bitions of a single nation, or of a single man. It
has never before attained the status of the well-
thought-out intellectual creed taught throughout
the world and pursued fanatically by many men
of many nations.

Today, Communist despotism, proclaiming the
so-called dictatorship of the proletariat, is a creed
which carries a strong appeal to those who do not
have a vigorous faith in the spiritual nature of
man. It plausibly pretends to identify itself with
what it calls great and irresistible forces of nature
and of history.

If one does not believe in a spiritual order, if
one does not accept the fact of moral law and what
the Virginia Bill of Rights referred to as "the
duty which we owe to our Creator," then it is, in-
deed, difficult to combat the thesis that men should
be the servants of the State; and that one State
should be the master over all other States.

If it be accepted, as a premise, that man is merely
matter, then it is easy to conclude, as the Com-
munists do, that the greatest harmony and greatest
productivity come from organizing a society of
conformity, where diversity is treated as grit in
the geai"s of a delicate machine. If all people act
only as directed, and think only as directed, and
believe only as directed, then, it is argued, there
will be none of the collisions, the disturbances,
which produce social unrest and wars. Then, it
is said, there will be peace and maximmn pro-
ductivity, because we shall have applied to man
the same principles of conduct which, we find, in-
crease peace and productivity in the case of do-
mesticated animals.

The Supremacy of Moral Law

In truth, a system of political liberty and na-
tional sovereignty is orderly and toleratle only if
the citizens exercise self-restraints and self-control
in accordance with the dictates of the moral law
and if they practice the Golden Rule. It is in-
dispensable to a free society that there be accept-
ance of the supremacy of moral law. Without
that, a free society becomes a society of intolerable
license.

You will recall that George Washington in his
Farewell Address pointed out that "morality is a
necessary spring of popular government" and he
said it could not be supposed that morality would
be maintained without religion. Basically the
present conflict between freedom and despotism is
a conflict between a spiritual and material view
of the Universe and of the nature of man.

I do not believe that this struggle is one which

can be quickly or easily resolved. Certainly it
cannot be resolved by any agreed partition of hu-
manity between freedom and despotism.

It would be intolerable for us to concede hun-
dreds of millions of souls to despotic rule. Also,
such an arrangement would be unstable from the
standpoint of the Communists.

The Soviet rulers occasionally tell us that there
could be "coexistence" between their society and '
oureelves. We must, however, beware of these
professions. Coexistence is not part of a Soviet I
Communist creed or practice, except in the sense
non-Communists are allowed, in a physical sense,
to exist.

It can never be satisfactory to the Soviet Com-
munists that freedom is suppressed only within
what is presently the area they dominate. Free-
dom anywhere is a constant peril to them, for free-
dom is inherently a contagious and dynamic moral
force. Therefore, the Communists conclude that
they are required, as a "defensive" measure, to seek
to suppress freedom in their environment.

Thus Soviet Communist rulers are driven not
merely by their own lusts but by their own doc-
trine, by their own fears, to seek constantly to
extend their control.

The Pattern of Soviet Negotiations

So far this year, we have negotiated in good
faith with the Soviet rulers in relation to the use
of atomic energy and in relation to Germany,
Austria, Korea, and now Indochina, Always there
is a consistent pattern. Never will they relax
their grip on what they have. In each of the geo-
graphic areas I mention, they insist upon a for-
mula which will not only assure the perpetuation
of tlieir despotism within the areas they now con-
trol, but also allow them to apply their ruthless
methods to gain control of the areas which are still
free.

It may be asked why, if these results could have
been foreseen, we have negotiated at all.

My answer is that no man has the right to assume
that he sees the future so clearly that he is justi-
fied in concluding either that war is inevitable or
that methods of conciliation are futile. Efforts
for lionorable peace are required out of a decent
respect for the opinion of mankind. Also, they
clarify the issues. That is why we resumed high-
level talks with those who proclaim themselves our
enemies, talks which had been broken off for 5
years. We have accompanied these talks with
safeguards designed to prevent the arousing of
false hopes or a relaxing of essential vigilance. We
have not compromised liberty where it prevails
within the free world and we have kept faith with
those who, having lost liberty, still covet it.

Out of talks, held under these conditions, has
at least come a demonstration of the implacable
purpose of the rulers of the Soviet Communist
bloc.

780

Deparfment of Sfafe Bo//ef;n

We are, indeed, confronted with something far
more formidable than individual or national lust
for glory and power. We are confronted with a
massive system which, despite its present power,
believes that it cannot survive except as it succeeds
in progressively destroying human freedom. In
so doing, it is restrained by no considerations of
morality or humanity.

I do not speak in a mood of pessimism. We
shall persist in our efforts to negotiate in relation
to Germany, Austria, Korea, Indochina, and
atomic energy. We know that Soviet Communist
doctrine teaches that it must be prepared to make
concessions and retreats when faced by an op-
ponent that is strong. Furthermore, we know that
the Soviet Communists' attempt to impose their
absolute rule over 800 million captives involves
them in what, in the long run, is an impossible
task. Already, beneath the solid and formidable
exterior which despotism usually presents, there
is much unrest. For the most part it is kept con-
cealed. But there are occasional flashes that reveal
the truth. The execution of Beria, and the revolt
of the East Germans of last June, show that the
rulers fear and hate and plot against each other
and that the ruled are not reconciled to their fate.

Also, it may be that the very fact that the power
of destruction is now awesome will itself lead even
the materialists to exercise restraint as a matter
of expediency.

I do not believe that a new glacial age of des-
potism is going to creep over all the world. I
believe that freedom still burns with a fire which
cannot be extinguished. It is, however, time that
we should realize that freedom faces a most for-
midable challenge. Also, we should realize that
the survival of freedom depends not merely on the
number of the free but even more upon the in-
tensity of their faith.

We often speak as a matter of convenience about
the "free world," meaning thereby those portions
of the world which are not now dominated by
communism. In tliat sense, approximately two-
thirds of the world is "free. But in the free
countries, only a part of their people are inspired
by the kind of faith which alone is potent as
against the materialistic and aggressive forces of
despotism.

The future of freedom rests with a small minor-
ity of mankind. Tliat is why it is indispensable
that the people of our Republic, for their part,
should hold fast to the faith of their fathers.
Just as freedom is contagious so, too, faith is
contagious. One of the best ways to keep our own
faith strong is to recall the faith of our forefathers
and to keep fresh in our minds the great deeds,
the near miracles which they wrought through
faith.

Our national history is rich in the story of men
who through faith in freedom wrought mightily.
Some of the greatest of these — George Washing-
ton, Thomas Jefferson, George Mason, and Patrick

May 24, 1954

Henry, to name but a few — worked here at Wil-
liamsburg in what has become known as the "prel-
ude to independence." It is good that, by such
commemorations as those j'ou hold today, we re-
call their faith and works. Thus, our faith, too,
will be kept strong and enable us, in the era in
which we live, to play worthily our allotted part.

U.S. Policy in Southeast Asia

News Conference Statements hy Secretary Dulles

Press releases 241, 244, 245 dated May 11.

Allegations of Diplomatic Defeat at Geneva

At his netos conference on May 11, Secretary
Dulles was asked whether he considered that he
or the United States suffered a diplomatic defeat
at Geneva. Mr. Dulles vmde the following reply:

I have read about that in the press— foreign,
domestic, Communist, and non-Communist. I
don't know what it is talking about. It is true
that at Geneva we have so far not achieved the
unification of Korea, nor does it seem likely that
we will achieve the unification of Indochina under
conditions of freedom and peace. We never
thought that there was a good chance of accom-
plishing those results. In all of these conferences,
we go into them realizing that the Communists
have a pattern of their own, which they have ap-
plied in Germany, which they have applied in
Korea, which they are applying now in Indochina.
This means that they will hold on to what they
have got and try to get us to accept a scheme
whereby they can get some more. We keep on
trying. But I do not call it a diplomatic defeat
that we are not able to lead the Communists to
give up, as long as they don't lead us to make any
costly concession, which we do not intend to make.

Geneva Armistice Proposals

Asked whether the at^mistice proposal put for-
toarxl at Geneva hy the Viet Minh Communists was
acceptable to the United States, Mr. Dulles made
the following reply :

I think very little of it because it is the same
pattern that has been applied in the past in Ger-
many, Austria, and Korea; namely, to compel a
withdrawal of the forces which sustain a free so-
ciety and to set up a system under which the Com-
munists can grab the whole area.

It is certainly unacceptable in its totality.
Whether there is any particular word or phrase
in it that is acceptable I would not want to say

781

■without further study. But it is not acceptable in
its totality.

Asked whether the French proposal was accept-
able to the United States, Mr. Dulles replied:

The French proposal I regard as acceptable. Of
course a great deal of detail would have to be
worked out. But the general concept of an inter-
nationally controlled armistice seems to me to be
one that is acceptable.

Concept of United Action

Secretary Dulles was asked whether there
were not insuperable difficulties in the creation of a
genuinely effective Asiatic- Pacific defense alliance.
He replied:

There are certainly gi-eat difficulties, as I pointed
out in the speech which I made a few days ago.^
The concept of collective security in the area is
nothing new. It is in the treaties which I nego-
tiated in 1950 and in 1951 with Australia, New
Zealand, and the Philippines, and also with Japan,
wherein we talked of the development of a more
comprehensive system of security in the area. The
difficulties in the way have been very great. I
wrote an article, I remember, in Foreign Affairs, I
think in January of 1952, on the problem of trying
to develop an enlarged Asian or Pacific-South
Asian or Pacific security pact. Now the difficul-
ties are very great because of the differences be-
tween the different nations, their different degrees
of independence or lack of independence, differ-
ences of race and religion, and a lack of common
traditions. It is an extremely difficult area in
which to operate, and it is inevitable that progress
should be slow, and in many of these situations
the willingness to cooperate has a certain relation-
ship to the measure of fear which is entertained
by the peoples concerned. I do not say the diffi-
culties are insuperable. If I felt that, I wouldn't
have put my shoulder to the task of trying to
create it.

Asked what tiwuld be required to constitute an
effective commitment in any such agreement, Sec-
retary Dulles replied:

I believe tliat the commitments should be of such
a character that if they were openly challenged we
would be prepared to fight, just as our similar
commitments carry that implication in relation to
the other mutual-security arrangements we have
made— the North Atlantic Treaty, the Anzus
Treaty, Philippine Treaty, the Rio Treaties, and
so forth.

Asked what would bring such an agreement into
operation, he said:

' Bulletin of May 17, 1954, p. 739.

782

If the states of Viet- Nam, Laos, and Cambodia
are comprehended in this collective security pact,
I would feel then it would be appropriate to use
force to put down attacks such as are now going
on there.

Asked if such a pact would include the Associ-
ated States, he replied:

That depends a good deal upon the views of
other countries and ourselves. It depends upon
the views of the Governments of Viet-Nam, Laos,
and Cambodia, on the views of the French, on the
views of some of the other participants. I can't
forecast that at the present time because the situa-
tion is very much in a state of flux.

Asked if such a concept was designed specifically
to meet t/ie situation in Indochina or the broader
area, he replied:

The purpose of this collective security arrange-
ment which we are trying to create is to save
Southeast Asia, to save all of Southeast Asia if
it can be saved ; if not, to save essential parts of it.

Asked if the plan for collective security could
succeed if one or more of its segments were lost to
the Communists, he replied:

Tlie situation in that area, as we found it, was
that it was subject to the so-called "domino
theory." You mean that if one went, another
would go? We are trying to change it so that
would not be the case. That is the whole theory
of collective security. You generally have a whole
series of countries which can be picked up one by
one. That is the whole theory of the North At-
lantic Treaty. As the nations come together, then
the "domino theory," so-called, ceases to apply.
And what we are trying to do is create a situation
in Southeast Asia where the domino situation will
not apply.

And while I see it has been said that I felt that
Southeast Asia could be secured even without per-
haps Viet-Nam, Laos, and Cambodia, I do not want
for a minute to underestimate the importance of
those countries nor do I want for a minute to give
the impression that we believe that they are going
to be lost or that we have given up trying to pre-
vent their being lost. On the contrary, we recog-
nize that they are extremely important and that
the problem of saving Southeast Asia is far more
difficult if they are lost. But I do not want to
give the impression either that if events that we
could not control and which we do not anticipate
should lead to their being lost, that we would con-
sider the whole situation hopeless, and we would
give up in despair. We do not give up in despair.
Also, we do not give up Viet-Nam, Laos, or Cam-
bodia.

Department of State Bulletin

Geneva Conference Begins Discussions on Indochina

Following are the texts of statements made hy
Under Secretary Smith in the first and second
plenary sessions of the Geneva Conference on
Indochina, on May 8 and May 10, together with
a draft resolution introduced hy the French dele-
gation on May 8:

STATEMENT OF MAY 8

The U.S. delegation takes this opportunity to
recall that at Berlin, the United States joined with
Fi-ance, tlie United Kingdom, and the U.S.S.R.
in agreeing to organize a conference at Geneva to
consider the problems of Korea and of Indochina.^
Subsequently, the same four powers I'eached agree-
ment as to the composition of the Indochina phase
of the Conference, an agreement reflected in the
presence here today of the nine delegations in this
hall. As in the case of the Korean phase, there
are only four inviting powers, the United King-
dom, France, the United States, and the U.S.S.R.
Therefore, if, as has been stated in press reports,
the invitation issued to the so-called Democratic
Republic of Viet-Nam appears in the name of both
the U.S.S.R. and the Communist Chinese regime,
that invitation is, in its form, at variance with the
clear understanding of the Foreign Ministers pres-
ent at Berlin last February. Assuming the press
reports to be accurate, the U.S. delegation can only
regret that the Indochina phase of this Confer-
ence should be initiated by a procedural evasion
of previously reached agreements.

At Berlin we agreed that "the problem of restor-
ing peace in Indochina" would be discussed at this
Conference "to which representatives of the
United States, France, the United Kingdom, the
Union of Soviet Socialist Republics, the Chinese
People's Republic, and other interested states will
be invited."

At Geneva the four inviting powers have agreed
that in addition to the participation specified at

' BuiXETiN of Mar. 1, 19.54, p. 318.

Berlin there should be representatives at this Con-
ference of the Governments of Laos, Cambodia,
and Viet-Nam, and of the Viet Minh.

The United States cannot agree to the sugges-
tion which has just been made that nonexistent
so-called governments or states, such as the so-
called Pathet Lao or Free Cambodians, can in any
way be considered as qualifying for invitations to
this Conference under the Berlin agreement.

The United States proposes that any idea of
inviting these nonexistent so-called governments
be rejected. If there is opposition to this United
States proposal, the United States suggests this
meeting be adjourned to allow for further dis-
cussions on this point between the four inviting
powers.

STATEMENT OF MAY 10

The U.S. delegation warmly welcomes the pro-
posals made and accepted this afternoon for the
evacuation of the long-suffering wounded of Dien-
Bien-Phu and hopes sincerely that this evacuation
will be effected without delay.

Regrettably, for the subsequent 2 hours of our
session we listened to a remarkable distortion of
the events of the past few years in Indochina. Tlie
Viet Minh spokesman ^ is well trained in the Com-
munist technique of distorting history and calling
black white. The world has learnecl to evaluate
such spurious allegations. The charges made
against the United States by the Vict Minh repre-
sentative are substantially identical with those
made by other Communist representatives during
the opening phase of the Korean discussion. They
have been already amply and adequately refuted,
and I see no reason to divert this Conference from
its important task by according them further at-
tention at this time. I cannot refrain, however,
from commenting on his remarkable effrontery in
describing the brutal Viet Minh aggression against
Cambodia and Laos as a movement of "liberation."

' Pham Van Dong.

tAay 24, 7954

783

At present, I will merely say that, after his state-
ment, it is extremely difficult to believe that the
Viet Minh representative has come to this Con-
ference with any intention of negotiating a just
and durable peace.

The United States has come here with sincere
hopes that the work of this Conference at Geneva
will result in tlie restoration of peace in Indochina
and in the opportunity for Cambodia, Laos, and
Viet-Nam to enjoy their independence under con-
ditions of a real and lasting peace.

The United States has watched with sympathy
the development of the peoples of Indochina to-
ward independence. The United States and many
other countries have recognized the three States of
Cambodia, Laos, and Viet-Nam. We have fol-
lowed with great interest the negotiations which
have been undertaken by France and the Asso-
ciated States to perfect the independence of the
Associated States.

The United States has shown in many ways its
sympathy for the effort of the Associated States
to safeguard their independence. We have pro-
vided material aid to France and tlie Associated
States to assist them in this effort and have given
them support to enable them to resist open and
covert invasion from without their borders. We
will continue to do so, for the simple reason that
it is the wish of the American people to assist any
nation that is determined to defend its liberty and
independence.

Tlie United States maintains that the first prin-
ciple of any settlement in Indochina must be to
assure the independence and freedom of the States
of Cambodia, Laos, and Viet-Nam.

The United States also maintains that any settle-
ment in Indochina must give assurance of real and
lasting peace. To this end, the United States be-
lieves that any settlement must be preceded by an
armistice agreement which incorporates effective
and adequate safeguards.

The United States maintains that such an armis-
tice agreement can be effective only under interna-
tional supervision. The United States, therefore,
believes that any settlement must include provi-
sions for effective international supervision and
assurance of powers and privileges on the part
of the international supervising authority equal to
enable it to carry out its various responsibilities.

The United States welcomes the French initia-
tive and believes the French representative has
made a helpful contribution toward the restora-
tion of peace in Indochina. The French pro-
posals are consistent with the general principles to
which any satisfactory settlement must conform.
In our opinion, they should be accompanied by a
program for the resolution of political problems.
We look forward to hearing the views of the
Government of Viet-Nam on such a program.

The United States notes the French proposal
that "agreements shall be guaranteed by the States

participating in the Geneva Conference." The
United States has already demonstrated its devo-
tion to the principle of collective security and its
willingness to help in the development of collective
security arrangements in Southeast Asia, as else-
where. Until it is possible to see more clearly the
exact nature of the agreements to be guaranteed
and to determine the obligations of the guaran-
tors, we will, of course, not be able to express any
judgment on this section of the proposal.

The U.S. delegation suggests that the Confer-
ence adopt the French proposal as a basis of dis-
cussion and hopes that we will move forward con-
structively and rapidly in bringing about a
restoration of peace in Indochina.

The U.S. delegation has listened with sympathy
to the factual recital of the representatives of
Cambodia and Laos and will study with interest
their proposals for the restoration of peace in
Cambodia and Laos.

FRENCH PROPOSAL OF MAY 8

[Unofficial translation 1

Fob Viet-Nam :

1. The grouping of regular units in zones of assembly,
to be tletermined by the conference on the basis of pro-
posals from the Commanders in Chief.

2. The disarmament of elements which do not belong
either to the army or to forces in charge of maintaining
order.

3. The immediate liberation of war prisoners and
civilian internees.

4. The control of the execution of these clauses by
international commissions.

5. Cessation of hostilities with the signing of this
agreement.

The re-assembly of troops and the disarmament cited
above, provided for in the five points, would begin, at
the latest, [number of days] after the signing of the
accord.

II

Fob Cambodia and Laos :

1. Evacuation of all regular and irregular Viet-Minh
forces which have invaded the countries.

2. The disarmament of elements which do not belong
either to the army or to forces in charge of maintaining
order.

3. The Immediate liberation of war prisoners and
civilian internees.

4. The control of the execution of these clauses by
International commissions.

Ill

These agreements shall be guaranteed by the States
participating in the Oeneva Conference. Any violation
would call for immediate consultation among these
States with a view to taliing appropriate measures
individually or collectively.

784

Department of Slate Bulletin

Reports of U.S. War Prisoners
Held in Soviet Custody

Press release 249 dated May 13

FoUowing are the texts of (1) a note of May 5
sent l)y the U.S. Embassy at Moscow to the Soviet
Minister of Foreign Affairs and {2) the reply
received by the Embassy on May 12:

U.S. NOTE

The Embassy of the United States of America
presents its compliments to tlie Ministry of For-
eign Affairs of the Union of Soviet Socialist Re-
publics and has the honor to request the Ministry's
assistance in the following matter:

Tlie United States Government has recently re-
ceived reports which support earlier indications
that American prisonei-s of war who had seen
action in Korea have been transported to the
Union of Soviet Socialist Republics and that they
are now in Soviet custody. The United States
Government desires to receive urgently all infor-
mation available to the Soviet Government con-
cerning these American personnel and to arrange
their repatriation at the earliest possible time.

SOVIET NOTE

In connection with the note of the Embaasy of
the United States of America, received by the
Ministry of Foreign Affairs of the Union of Soviet
Socialist Republics on May 5, 1954, the Ministry
has the honor to state the following :

The United States Government's assertion con-
tained in tlie indicated note that American prison-
ers of war who participated in military actions in
Korea have allegedly been transferred to the
Soviet Union and at the present time are being
kept under Soviet guard is devoid of any founda-
tion whatsoever and is clearly far-fetched, since
there are not and have not been any such persons
in tlie Soviet Union.

Progress Toward World Brotlierhood

by Deputy Under Secretary Murphy ^

In accepting the citation and testimonial pre-
sented to me by the Massachusetts Committee of
Catholics, Protestants, and Jews, wliich I do with
humility, I am conscious of a double honor: first,
that you have judged me worthy to receive it;
second, that you have seen fit to bestow it upon
me in the distinguished company of Gen. David
Sarnoff and Gen. William F. Dean.

'Address made before the Massachusetts Committee
of Catholics, Protestants, and Jews at Boston, Mass., on
May 6 (press release 235).

h\ay 24, 7954

In the citation just read to me was the phrase
"enhghtened Americanism." That is one of the
things I want to talk about tonight. It seems
to me to be a peculiarly appropriate theme before
this outstanding group who have for a number
of years been practicing it with such marked
effect.

The goal I believe most Americans seek is world
brotherhood. But if we are to succeed in persuad-
ing men to accept the ideal of brotherhood uni-
versally, we shall have to demonstrate increas-
ingly that it is attainable. You in Massachusetts
have achieved a notable degree of brotherhood
in a great community, and in so doing you are
giving a practical demonstration of "enlightened
Americanism."

Other communities throughout the country
have in recent years shown a similar spirit. Our
Nation as a whole has always progressively cher-
ished tolerance, understanding, and the acceptance
of minority groups both religious and racial.
Some of this progress has come by law. But all
of it has been possible only because the hearts
of men have been warmed as their minds have
been enlightened.

We have advanced toward brotherhood in the
Western Hemisphere. No longer do many of our
neighbors among the Republics of Latin America
think of us apprehensively as the colossus of the
North. Instead, we are "good neighbors." This
relationship, as Secretary Dulles said a few weeks
ago in Caracas, has been tried and tested over the
years. It has worked. Indeed, it is held up today
as a model. As you know, the Rio Pact of 1947
served as the pattern for the Nato Agreement —
and I may add, although it is perhaps a dubious
distinction, Mr. Molotov also took the wording of
the Rio Pact and used it in phrasing the European
Security pact which he offered in Berlin. The
sham was quickly exposed when the Soviet For-
eign Minister was reminded tliat words alone can-
not make an agreement. "Peace," says the Rio
Treaty, "is founded on justice and moral order
and, consequently, on the international recogni-
tion and protection of human rights and free-
doms. ..."

In our hemisphere we are working to prove
increasingly the substance underlying these
words. It is, if you please, "enlightened Amer-
icanism" in action.

A great American statesman. Dr. Alberto Lleras
Camargo, who has been President of the Republic
of Colombia and Secretary-General of the Or-
ganization of American States, spoke these words
at San Francisco when the nations of the world
met in 1945 to draft and approve the charter of
the United Nations :

None of tlie concepts of international law which govern
the relations of the peoples of this hemisphere can be
termed a t.vpically American creation. Hut how much
effort, how many wars, how much pain, how much misery
has it cost European civilization for centuries to implant
a principle which, among us, is accepted at a Pan Ameri-

785

can meeting as a natural accord of wills without opposi-
tion from any important national interest? We are not,
because of this, better or worse, but more fortunate.

The great achievement of America and of the
nations of the Americas has been the unity it has
achieved and the civilization it has built on the
bases of human dignit_y, mutual respect, and the
God-given belief that the brotherhood of man is
an acliievable ideal. We are proud that not only
tolerance but love of our fellow man is a part of
our credo. And with humility we recognize that
we are the beneficiaries, as Dr. Lleras has pointed
out, of what the crucible of history has fashioned.
The mission of our country, and of all the coun-
tries of the Americas, is to serve as a dynamic
example which can benefit all of mankind.

The brotherhood of Protestants, Catholics, and
Jews, as evidenced by this gathering here in Bos-
ton, is symbolic of the love of our fellow man to
be found throughout the broad reaches of our
country, in the Western Hemisphere, and wherever
in the world man looks out for his brother.

Influence of Moral Forces

Let us seek for a solution of man's basic prob-
lem : distrust of one another. This problem does
not lie beyond our power of influence. For posi-
tive moral forces can exercise tremendous
influence even in a world of tensions.

And, finally, since it is the individual who is so
important, we can place our faith in him. By the
acceptance of this principle it is a part of our
belief that, unless they by their actions and will
prove otherwise, all men are worthy of our trust.
Because of tliis faith we can be sure that we shall
never lack the leadership of, say a Lincoln or of a
Bolivar, when gloom falls upon the stage of his-
tory.

It is on this same concept of justice and moral
order, of international recognition and protection
of liuman rights and freedom, that United States
support of the United Nations rests. Throughout
the 9 stormy years of the United Nations we have
held steadfast to tlie ideal. And no less important,
certainly, we have held, and will I think continue
to hold, to belief in its attainability. As at home
we found it possible to advance toward brother-
hood by respecting the rights and points of view
of others, so must we continue to work for inter-
national brotherhood.

In the meantime, and realism demands that we
look ahead perhaps many years, we rely upon the
coalition of the United States and other free na-
tions and a buttressing of our collective security.
For, as you know, not all members of the United
Nations are dedicated to the concept of brother-
hood.

Thus the United Nations reflects the kind of
world in which we now live. A considerable ma-
jority of its members, including, of course, the
United States, continue to aspire to the goal of

brotherhood. They want agreements, not wars.
They want just political settlements and enduring
peace. They long for a reduction of military
forces and hope for eventual disarmament. Next
week, in London, a subcommittee of the U.N. Dis-
armament Commission, including a United States
representative, will consider again the complex
problems in its field in an effort to find a construc-
tive program.

Many have been disturbed by news of recent
nuclear tests in the Pacific, with their indica-
tions of the tremendous destructive force of the
weapons which might be employed in the future.
How to deal with these awesome weapons is part
and parcel of the whole disarmament program.
Repeatedly, the overwhelming majority of the
United Nations has recognized the sense of this
point of view. It has rejected Soviet efforts to
single out a particular kind of weapon for sup-
posed elimination in exchange for a paper promise
without any safeguards to compel the honoring
of the promise.

It is worth recalling that when the United
States had an absolute monopoly of atomic weap-
ons, we offered to give up this monopoly in the
interest of world peace — provided tliat there be
an effective international control system which
would protect all states against violations or
evasions. This was rejected by the Soviet Union,
even though it was accepted by almost all other
members of the United Nations except the Soviet
bloc.

U.S. Record on Disarmament

The United States record on disarmament is a
good one. It is a record of persistent and sincere
attempts, whether individually or joined by our
closest allies, to find ways to ease the costly bur-
den of armaments and lesson the threat of war.
We tried in the Atomic Energy Commission. We
tried in the Commission for Conventional Arma-
ments. We tried in special meetings of the six
powers most knowledgeable about atomic energy
matters. We proposed the creation of the Dis-
armament Conmiission, to replace the Atomic En-
ergy and Conventional Armaments Commissions
and to take a fresh look at these difficult problems.
We and our allies introduced proposal after pro-
posal in the Disarmament Commission, only to
have the Soviet Union refuse even to discuss them.
It was the United Kingdom, France, and the
United States which took the initiative recently to
renew discussions in the Disarmament Commis-
sion and to set up the new subcommittee, now pre-
paring to meet on May 13 in London, to carry on
a fresh attempt to find workable solutions.

Our record is highlighted by the fact that, al-
though we have put forward one proposal after
another in unsuccessful efforts to reach agreements
with the Soviet Union, we have not been adamant

786

Department of State Bulletin

in insisting that our proposals were the only
valid ones. In this we liave diffei'ed most notably
from the U.S.S.R., which, while always insisting
that its proposals were the only ones with any
validity, has refused to explain them or to discuss
their ambiguities. The United States has one
test for any proposal — the test of effective safe-
guards to protect all nations from violations or
evasions of an agreed disarmament program and
to give adequate warning of any breach of these
agreements. We have been ready, willing, even
eager, to support any program that would reduce
the danger of war and the fear of aggression, so
long as it really protected the security of all
nations.

President Eisenhower has promised that "this
Government is ready to ask its people to join
with all nations in devoting a substantial percent-
age of the savings achieved by disarmament to a
fund for world aid and reconstruction. The pur-
poses of this great work would be to help other
peoples to develop the undeveloped areas of the
world, to stimulate profitable and fair world trade,
to assist all peoples to know the blessings of pro-
ductive freedom." ^

Our delegates in London next week have this
goal before them. It is a goal founded in the con-
cept of brotherhood.

The Role of the International
Red Cross In War and Peace

Statement hy Under Secretary Smith^

I very much welcome this opportunity to visit
the headquarters of the League of Red Cross So-
cieties and to pay homage to the immortal founder
of the Red Cross, Henri Dunant, a Swiss national
and a native of Geneva, on the 126th anniversary
of his birth which is being observed today as Inter-
national Red Cross Day.

Geneva has given much to the world. None of
her contributions to the causes of humanity and
peace has been greater than the Red Cross. To
men of good will, it will ever stand as an inspira-
tion in their striving for peace and understanding
among nations.

'BuiXETiN of Apr. 27, 1953, p. 602.

' Made at the headquarters of the League of Red Cross
Societies, Geneva, on May 8 (released to the press by
the U.S. delegation to the Geneva Conference).

Until the last, a heroic nurse trained by the Red
Cross was the only woman at Dien-Bien-Phu to
attend the wounded who could not be evacuated.
She served the precise need envisioned by Henri
Dunant at the Battle of Solferino. It was his
idea that men wounded in battle should no longer
be regarded as combatants — that they should re-
ceive care regardless of the uniform they wore.
It is a pity that this humane principle is not al-
ways ob.served, even today.

I recall that it was an American, Henry P.
Davison, who in 1919 started the Red Cross inter-
nationally on its peacetime work. He was the
founder of this world Red Cross federation whose
headquarters are in this building. My country-
men, over the years, in cooperation with other
countries, have sought in a concrete and imagina-
tive waj- to advance its aims of relieving the suf-
fering of victims of disease, poverty, and natural
disasters.

Examples of such efforts come to our attention
repeatedlj'. In Greece today, thousands of men,
women, and children made homeless by last week's
earthquakes are receiving Red Cross aid. In the
same way, victims of recent tornadoes in the United
States are being helped. Month after month, in
West Berlin, the German Red Cross has been
sheltering and feeding the bulk of the thousands
of refugees from the East who arrive with only
the clothes on their backs in their quest for free-
dom. National Red Cross personnel, by unrelent-
ing, selfless, and frequently heroic efforts over
many years, have been instrumental in the relief
of human suffering, regardless of race, creed, or
political affiliations.

I join with you in the fervent hope that the day
may not be far off when the Red Cross throughout
the world can concentrate its energies on its peace-
time task.

Visit of Haile Selassie

The Department of State announced on May 15
(press release 257) that arrangements were being
completed for the visit of Haile Selassie I, Em-
peror of Ethiopia, who will visit the United States
at the invitation of the President. The invitation
was extended in 1953, the 50th year of U.S.-
Ethiopian relations, to mark our appreciation of
Ethiopian friendship and cooperation.

His Imperial Majesty will arrive at Washington
on May 26 and remain 3 days. He will go via
Princeton, N. J., to New York City, and then make
a tour of several weeks through the United States.
He will also visit Canada and Mexico.

fAay 24, 1954

787

The Near East and the West

hy Eric Johnston

Special Representative of the President '^

Six years have passed since the United Nations
partitioned Palestine between tlie Arabs and the
Jews.

Tliey have been 6 years of tension, unabated bit-
terness and recurrent bloodshed.

They have been 6 years of constant, painstak-
ing searching for the way to peace.

But there is still no peace in Palestine.

The dispute between the Arab States and the
State of Israel remains a sputtering fuse that
might at any time touch off world war in the
atomic age. This is one certainty in the whole
complex and perilous situation — the certainty of
danger to the world. Another is the certainty
that the nations of the world cannot pennit the
danger to persist.

But after 6 years of fruitless searching, which
way may we look for a solution? It is all too
apparent that political rapprochement between
Israel and her Arab neighboi-s is no likelier today
than it was last year or the year before. Time
has had little healing influence; the breach is as
wide as ever. Instead of abating, tensions have
mounted — recently almost to the breaking point.
If reconciliation is possible, and we must believe
that it is, we must also, unfortunately, admit that
it is not likely to come easil}' or soon.

Nor will it come all at once. The impasse that
has defied every effort of the United Nations for
the last 6 years is not going to melt suddenly away.
It will give way gradually, if at all — bit by bit,
and in response to mounting pressures from inside
the region as well as to influences from outside.

In these circumstances, it seems to me that the
U.S. policy of "s3'mpathetic and impartial friend-
ship," as the President recently stated it, must
contemplate two simultaneous methods of ap-
proach. It must envisage our continued active
participation in United Nations efforts to bring
about a final and durable settlement between
Israel and the Arab world; and it must look to
the more immediate objective of removing or re-

" Address made in the Univereity Lecture Series, at
Cornell Univei'sity, Ithaca, N. Y., on May 6 (press release
230 dated May 5).

ducing the points of controversy that keep the
quarrel alive.

This means that wjiile we try, in concert with
other nations of the West, to achieve an ultimate
political settlement, we must exert every reason-
able effort to remove present irritants and causes
of tension.

Mission to Middle East

Some months ago, President Eisenhower en-
trusted me with a mission to the Middle East — a
special mission calculated to help relieve some of
the more acute reasons for tension between the
Arab countries and Israel. I welcome the o])por-
tunity to explain the nature of this mission to you
here tonight. But before I do so there are one
or two things I would like to say by way of back-
ground.

First, I believe it is necessary to deal with the
situation as it now exists. We are confronted by
what is; not by what might have been. The con-
flict between Arab and Jew in the Near East goes
back to dim antiquity, and it seems important to
define the area of our discussion in time, as clearly
as it is defined in geography.

We must start, it seems to me, with November
1947 when the decision of the United Nations to
partition Palestine brought a new factor into the
ancient quarrel between Arab and Jew. That fac-
tor was the State of Israel. Its birth, at the end
of the British Mandate, transformed a dispute
between two groups of people into a dispute be-
tween sovereign states. Historians may forever
debate the wisdom of the United Nations decision
to partition the mandated territory of Palestine;
they may quarrel endlessly, as they will, over the
early recognition accorded Israel by the United
States.

But the reality is that such a solution was
adopted, that Israel was created and recognized,
and that it does exist today as a full-fledged mem-
ber of the community of nations. The only valid
assumption, and one of the basic considerations of
American policy in the region, is that it will con-
tinue to exist.

788

Department of Slate Bulletin

Equally basic is our disposition to be friends
with the people of the Arab world. Our attitude
toward the State of Israel may be distasteful to
them and, in many respects, their point of view
is at least understandable. But just as important,
just as real, just as positive, is our attitude toward
the Arab peoples — and it is an attitude of sincere
friendship, genuine interest in their growth, and
wholehearted willingness to help them achieve
their noblest national aspirations.

Second, I believe it is important to undei"stand
the considerations underlying this American pol-
icy of friendship for both sides. I think they are
compounded of self-interest and our own growing
sense of responsibility for free world leadership.

Dangers in Arab-Israel Tensions

Tlie danger to world peace in the Middle East is
clear to us all. The unrelenting antagonism be-
tween the Arab States and Israel is an invitation
to mischiefmakers in the Kremlin. No one can
say how swiftly or in what direction the flame of
open war between Arab and Jew might spread.
But no one can doubt that the strategists of com-
munism would be quick to fan the flame. Chaos
is their ally.

But open war between the nations of the Near
East is not the only danger. The more subtle, if
not graver, peril lies in the retrogressive effect of
Arab-Israel tensions. Throughout the region, as
in many other areas of the world, there is a new,
insistent demand for progress, evident in mass
unrest and political instabilities. This unrest has
its origins more in social and economic than in
political problems.

Much of American foreign economic policy to-
day is premised on the assumption that healthy
social progress is the most effective antidote to the
Communist virus, which, in common with its bac-
teriological cousins, strikes hardest at rundown,
poorly nourished systems. For this reason, we
have undertaken a global effort to help less ad-
vanced peoples help themselves toward a better
and more rewarding life. But in the Middle East,
the continuing tension between Israel and her Arab
neighbors is a massive barrier to economic develop-
ment and the kind of progress we believe the peo-
ple of the region must and can acliieve.

To cite just one example, the countries of the
Middle East — and I include them all — need capi-
tal. Most of all, they need private investment
capital, with its attendant technical know-how
and skilled management, to develop natural re-
sources and start a cycle of industrial activity.
As Chairman of the International Development
Advisory Board for almost 3 years, I have had
occasion to look into the investment potentials
of the Middle East. Considerable as I believe
them to be, it is abundantly clear that private in-
vestors in this or any other country are not going

to put money into a region that might be plunged
into war at any time.

Until there is rapprochement between the na-
tions of the region, social progress is going to be
slow. Until there is progress, mass discontent
will not abate but rwell. While the discontent
persists, the ground remains fertile for the seeds
of communism. They are being sown there now.

American interest in the region stems also, of
course, from strategic considerations having to do
with both geography and resources. Many times
through the course of history, this ancient land
linking Asia with Europe and North Africa has
served as a bridge for conquerors from both East
and West. It is the Eastern land approach to the
Suez Canal. Over it lies the route of major inter-
national airlines. Beneath the sand of its desert
wastes lies an immense pool of oil important to
the Western World and potentially useful to
Russia and her Eastern European satellites.

When the development of atomic energy for
military and economic application will affect these
strategic considerations, I certainly do not know.
It is conceivable that the adaptation of atomic
energy to industrial purposes may diminish some-
what the industrial and military importance of
oil in the foreseeable future. But for the pres-
ent, we may only assume that the Near East re-
mains, in all respects, a crucial area.

It is against this background of American
Middle Eastern policy that the objectives of the
mission given me by the President must be
weighed.

The President asked me, as his Ambassador, to
open discussions with four countries — Syria,
Lebanon, Jordan, and Israel — about the possi-
bility of developing the physical and economic
resources of the Jordan River Valley for the
benefit of man.

Importance of the Jordan River

Now the Jordan is not much of a river, as we
in America think of rivers. About 200 miles long,
it rises in the mountains of the Lebanon, drops
swiftly into Lake Tiberias, and then flows through
a sub-sea-level valley to the salt Dead Sea. But
in the arid Middle East, water is life. If the
Jordan is small by our standards of comparison,
its waters are as precious as petroleum — far more
precious than we, sitting here tonight "high above
Cayuga's waters," are likely to appreciate. And
if the river has rolled through the centuries a
wasted stream, modern science can now make it
a rich potential source of fertility and power in
a valley that sorely needs both.

But the Jordan — -and herein lies the difficulty —
is an international stream. Four states — Israel,
Lebanon, Jordan, and Syria — have some claim
to its waters. In the context of the Arab-Israel
dispute, the river thus becomes a source of con-

May 24, 1954

789

stant friction and potential strife. The Jordan
Valley lies at the very heart of the political ten-
sions which keep the whole Middle East in a state
of perilous ferment and discord.

Neither Israel, in a hurry to get on with its own
development, nor the Arab countries, alive with
pressures for economic and social progress, are
likely to sit idly by and watch the precious waters
of the Jordan go on gliding by unused. But
unless a mutually acceptable formula can be f ovmd
for dividing the water fairly among them, any at-
tempt by one country to harness the stream for its
own use will be an explosive provocation to the
others.

Even more important, perhaps, is the fact that
the Jordan, harnessed for irrigation, would pro-
vide a livelihood on the land for thousands of
Arabs displaced from their former homes in
Palestine by the terrible events of recent years.

Living in camps maintained by the United Na-
tions Relief and Works Agency, or in caves or
primitive huts, these unhappy people have for 6
years borne the brunt of misfortune deriving from
the conflict between the Arab nations and Israel.
Today thousands of them are homeless, landless,
penniless, and increasingly hopeless.

In the Jordan Valley, on lands watered through
modern irrigation canals, many of these people
could be given a new economic stake and the dig-
nity of independence once again. Wliile it would
not solve the whole problem of the Arab refugees,
who number more than 800,000, settlement in the
Jordan Valley would at least ameliorate the ten-
sion. It would ease the burning sense of frustra-
tion and resentment they now feel after 6 long
years of displacement and defeated hope.

If accepted by all four of the states concerned,
therefore, a comprehensive program for develop-
ing the Jordan River basin would do several
things: first, it would form the basis for an equit-
able allocation of the available waters and thus
take the river out of the area of controversy;
second, it would mark at least the beginning of a
constructive, practical, and long overdue solution
of the refugee problem, and thus help to clear the
atmosphere of bitterness and resentment; third, it
would contribute to a general rise in economic
levels and thus help to promote social progress
in the region.

Perhaps nowhere in the world would a program
of water and power development produce greater
tangible and intangible benefit. In terms of hu-
man welfare and of world peace, the dams and
irrigation works involved would have a value
wholly out of proportion to the geographic size
and importance of the valley itself.

Now just what was it that I proposed to the
Arab States and Israel 5 months ago?

Actually, it was not a "plan," but a broad con-
ception of what might be done, offered as a basis
for discussion and negotiation. In outline, the

core of the idea is to use Lake Tiberias as a natural
storage reservoir for the waters of the Jordan and
its j:irincipal tributary, the Yarmuk. These waters
would be released through a system of canals for
all-year irrigation in the lower valley. Israel's
share would be drawn mainly from headwaters
upstream from Tiberias.

Scope of Suggested Project

Thus harnessed and controlled, the waters of the
Jordan system would provide steady year-round
irrigation for a total of some 234,000 acres of land
not now irrigated in the watershed — much of it
capable of producing crops all year round. Some
38,000 kilowatts of electric energy could be pro-
duced through a power installation on the Yarmuk
and some 27,000 kilowatts at another plant near
Tel Hai in Israel.

In the original proposals advanced 5 months
ago, tentative yearly allocations of water were
suggested: 426 million cubic meters to irrigate
104,000 acres in Israel ; 829 million cubic meters to
irrigate 122,500 acres in Jordan; and 50 million
cubic meters to water 7,500 acres in Syria. These,
however, were subject to discussion and possible
revision on the basis of detailed engineering
studies and other considerations.

By way of comparison and as an indication of
the size and economic value of the project, however,
it is slightly larger than the 225,000-acre Salt
River project near Phoenix, Arizona. This is
three-crop land, generally comj^arable to much of
the area that can be irrigated in the Jordan Valley.
The gross value of tlie crops growii in the Salt
River project is $00,690,000 a year. That is a crop
income of $268 an acre. The city of Phoenix is
largely supported by this revenue from the irri-
gated farming lands around it.

Up in my native Pacific Northwest, the largest
of ail U.S. irrigation projects is in the Columbia
River Basin where 1,000.000 acres will be irrigated
by water from Grand Coulee Dam. Tliis is one-
crop land. Assuming that two-thirds of the Jor-
dan Valley's irrigable land, or about 150,000 acres,
is three-crop land, the project, in terms of crop pro-
duction, would be approximately half as large as
our largest American irrigation operation.

None of the details of the idea I put forward on
belialf of the President last November were fixed
in a rigid pattern or an ironclad plan. We did
not offer a take-it-or-leave-it proposition. On my
first visit to the area in connection with my mis-
sion, I merely asked the Governments of Jordan,
Syria, Lebanon, and Israel to consider the idea of
total valley development on its merits as an eco-
nomic proposition, outside the' context of the
political issues between them. I assured them of
American interest in the project and of American
support and assistance in carrying it out, if the
principle were accepted.

790

Department of Stale Bulletin

And the principle is, of course, the most im-
portant thing. Our main concern, at this stage,
is to establish a sound, mutually acceptable basis
for sharing the water among the states which
claim it. This requires an acknowledgement on
their part that the Jordan and its tributaries
constitute an international river system and that
there must be some kind of understanding as to
who is entitled to how much of the water. Once
this fundamental understanding has been reached,
it becomes a question of engineering the dams and
power plants through which the waters can be
put to the best use for the refugees and the people
of the states concerned.

Need for International Supervision

Because the political situation in the area
makes cooperation between the Arab States and
Israel impossible at the present time, the proposed
system of waterworks in the valley would require
international administration and supervision.
Eventually, if a total valley program became
reality, some kind of valley water authority,
probably under the United Nations, would have
to be created. But here again, once the basic
question of principle has been accepted, the
elaboration of a suitable mechanism for inter-
national supervision would seem to present no
insurmountable difficulties.

To my mind, the most interesting aspect of the
whole idea, however, is that it is still alive — not
merely alive but, if I may say so, kicking! Con-
sidering the state of hypertension in the area at
the present time, no one, least of all myself, would
have been surprised if my original approach to
the valley states had met with a flat and final
rejection. But to the contrary — despite many a
misleading news dispatch — the Arab nations and
Israel have shown marked and unmistakable in-
terest. None of them has accepted the proposal
yet. But if they have not said yes, neither have
they said no — and in that fact, under the cir-
cumstances, there is a genuine basis for en-
couragement.

The Arab countries appointed a special com-
mittee of Arab engineering experts to examine
our original suggestions. Their reactions and
suggestions have now been presented to us and
their report represents serious and constructive
effort to give the idea the consideration it
deserves.

Israel has so far been receptive in principle and
noncommittal in detail. Our Embassy at Tel
Aviv has just obtained Israel's comments and re-
actions and they are on the way to Washington,
where we will study them carefully.

Toward the end of this month, after we have
digested and analyzed the reports of Arabian and
Israeli experts, it is my intention to return to
the Near East for further discussions. Through
these negotiations, it may — and I want to em-
phasize the word may — be possible to put together
a workable plan for the Jordan River system
which all of the valley states can accept, despite
continuing political differences between them.

Whether we succeed in doing so or not. Presi-
dent Eisenhower — for I am only his Ambassa-
dor— will have made an effort dedicated to the
proposition that economic stability and social
progress — a more secure, better standard of life
for people — are the surest and most powerful
bulwarks of peace and freedom in the world. It
is a demonstration of our good will toward all
the nations of the area — a practical, commonsense,
constructive example of what the President meant
when iie stated our policy to be one of "sympa-
thetic and impartial friendship."

Visit of Japanese Expert
on Atomic Disease

Press release 254 dated May 14

Dr. Masao Tsuzuki, a noted Japanese expert on
atomic disease, will arrive in Washington on May
16 to consult with U.S. scientists and officials of
the Department of State and the Atomic Energy
Commission. Dr. Tsuzuki, who has recently par-
ticipated in an International Red Cross Confer-
ence at Geneva and a medical convention in Ger-
many, will spend about 2 weeks here before re-
turning to Japan. It is anticipated that Dr.
Tsuzuki will be given access to the best available
U.S. knowledge concerning diagnosis and treat-
ment of radiation illness and cancer. He will have
an opportunity to visit the Brookhaven and Ar-
gonne National Laboratories and hospitals in
Boston and Chicago.

Dr. Tsuzuki has had an exceptionally busy and
varied career in medicine. From 1927-40, he
served as a professor in the Faculty of Medicine
at Tokyo University. He has been distinguished
for his work in oral surgery, chest surgery, and
radiation illness. The latter has been his major
interest since August of 1945 when he was ap-
pointed head of a Japanese Government survey
group to study effects of the A-bomb. At the end
of the Occupation, he was appointed head of a
new Japanese Atomic Bomb and Casualty Re-
search Committee.

May 24, 1954

791

The North Atlantic Ocean Stations Agreement

hy Ernest A. Lister

Relatively few people outside the fields of avia-
tion and meteorology are aware that a network of
floating stations has been in existence in the Noi'tli
Atlantic for more than 10 years. Yet this net-
work has been considered sufficiently important to
receive the continued support of virtually all
nations whose airlines operate between North
America and Europe. It constitutes a significant
example of international cooperation in promoting
the safety, regularity, and efficiency of trans- At-
lantic flying.

An ocean station is a fixed point at or near which
vessels are continuously posted on a rotation basis.
Such vessels are specially manned and equipped
to provide weather observation, search and rescue,
and air navigation and communication services.
Meteorological information is reported regularly
to aircraft in flight and to weather forecasting
services on both sides of the Atlantic. United
States participation is effected through the opera-
tion of U. S. Coast Guard vessels.

The United States and the United I^ngdom had
maintained an extensive network in the North
Atlantic during World War II for militai-y rea-
sons. This system was virtually disbanded after
the war but the need for ocean stations became
pressing again with the advent of large-scale
airline operations between North America and
Europe. A requirement for the establishment and
operation of an ocean weather stations program
was first officially recognized at the Picao ^ North
Atlantic Route Service Conference held in Dublin
in March 1946.

At the First Conference on North Atlantic
Ocean Stations (London, September 1946) an
agi-eement was drawn up for the 3-year period
July 1, 1947-June 30, 1950, with provision for its
modification and renewal at a subsequent meeting
in 1949. This agreement provided for the opera-
tion of a 13-station network with the United States
responsible for 71^ stations. The Second Confer-
ence (London, April 20-May 12, 1949) drew up

^ Provisional International Civil Aviation Organiza-
tion, predecessor to Icao, the International Civil Aviation
Organization.

a new agreement establishing a 10-station network,
the United States accepting responsibility for 514
stations, or 14 out of the 25 vessels required. This
agreement was to cover the 3 years from July 1,
1950, to June 30, 1953, but it was extended by a
protocol, dated May 28, 1952, for a further period
of 1 year.

Under the terms of this protocol a Third Con-
ference was to be convened prior to October 1,
1953. The Third Conference (Brighton, Eng-
land, July 8-15, 1953) was limited to financial and
administrative matters only. Tlie principal prob-
lem facing the Conference was tlie redistribution
of operating and cash responsibilities among the
states concerned. This was a natural consequence
of changes which had taken place since 1949 in the
relative number of North Atlantic crossings made
by airlines of the various countries. The pro rata
share of the United States had decreased from 14
to approximately 1 1 vessels if a 10-station program
were to be continued. It soon became clear at the
Third Confei'ence, however, that European oper-
ating states were not ready to commit themselves
to providing and maintaining three additional
vessels to replace those no longer available from
the United States.

Being limited to financial and administrative
matters, tlie Third Conference was debarred from
examining the possibility of reducing the number
of stations. It recommended, therefore, that a
full conference be convened to review the whole
problem of North Atlantic Ocean Stations in
order to:

(a) Determine the number of stations and ves-
sels which would be technically adequate for inter-
national civil air navigation in the North Atlantic
region and practicable within the collective re-
sources available, and

(h) Determine and agi-ee upon responsibilities
for the operation and financing of the scheme.

The Fourth Conference

The Fourth Icao Conference on North Atlantic
Ocean Stations was held in Paris, February 9-24,

792

Deparfment of State Bulletin

1954. The following 16 governments were rep-
resented :

Belgium

Canada

Denmark

France

Iceland

Ireland

Israel

Italy

The Netherlands

Norway

Spain

Sweden

Switzerland

United Kingdom

United States

Venezuela (observer only)

Observers representing the following interna-
tional organizations participated in the
Conference :

International Airline Navigators Council
International Air Transport Association
International Association of Physical Oceanography
International Federation of Air Line Pilots

Associations
International Federation of Independent Air Trans-
port
World Meteorological Organization

The United States was represented by the fol-
lowing delegation :

B. A. Lister (Department of State), Chairman and

Delegate
Capt. W. E. Oberholtzer ( Navy ) , Vice Chairman and

Delegate
Capt. A. J. Hesford (Coast Guard), Alternate Delegate
Capt. E. K. Rhodes (Coast Guard), Alternate Delegate
Lt. Col. J. W. Baska (Air Force), Alternate Delegate

D. W. Little (Weather Bureau), Alternate Delegate

E. Thomas Burnard (Air Transport Association),
Adviser

Conference work was carried on through Execu-
tive, Technical, Financial, and Drafting Commit-
tees. The Executive Committee, composed of
heads of delegations, met briefly the opening day
of the Conference to approve rules of procedure
and to consider amendments to the provisional
agenda. Several working groups and working
parties were set up by the Financial and Technical
Committees.

Number and Location of Stations

The Technical Committee agreed early in its
proceedings that, in principle, a 10-station network
was highly desirable in order to provide the de-
sired meteorological services. Based on advice
received from the Financial Committee that the
vessels required to operate such a network were
not likely to be availiible, however, the Committee
considered various proposals for a 9-station net-
work. It found that the following two alterna-
tives were acceptable from the technical point of
view :

(a) Eliminate Station "H" between New York
and Bermuda and retain the other 9 positions sub-
stantially as they exist under the 1949 agreement;
or

(b) Eliminate Station "E" between Bermuda
and the Azores with some adjustment southward
in the locations of Stations "C" and "D."

May 24, 1954

299550—54 3

Alternative (a), favored by the United States,
finally received seven votes in the Technical Com-
mittee against six for the second proposal.

The Financial Committee, after examining eco-
nomic and general policy aspects of the two alter-
natives, recommended a 9-station network with
"H"' eliminated. This plan was adopted by the
Conference and forms the basis for the new agree-
ment. Station locations are as follows:

station
A

D

£}

Location

02'
33'

'OON

■oow

56'
51'

'30N

■oow

52'
35'

'45N
'30W

44''00N
41''00W

35'

48'

'OON
'OOW

59'
19'

'OON
=00W

52'
20'

°30N
»00W

45
16'

"OON
'OOW

66
02

"OON
°O0B

M

Station "I" will return to the location originally
specified in the 1949 agreement, after a minor
change in 1953. The other eight stations are to
remain unchanged.

Allocation of Responsibilities

The Conference agreed that the responsibilities
of states should be broadly in proportion to the
benefits derived by them from the existence of the
ocean stations and that the operating costs should
be borne by all states in accordance with these
benefits. It also decided that any difference be-
tween the actual and theoretical responsibility of
states operating ships should, insofar as possi-
ble, be adjusted by cash reimbursements or
contributions.

Civil aircraft crossings for 1953, the most recent
annual period for which statistics were available,
were taken as a working basis for establishing the
benefits derived by states from the program.
United States aircraft made 6,403 crossings during
this period, just over 41 percent of the total of
15,713. This compares with the 04 percent figure
used in establishing the United States contribu-
tion under the 1940 agreement, and 56 percent for
the 1949 agreement.

In previous conferences the United States and
Canada had urged that operating and financial
responsibilities be assessed partly on the basis of
benefits derived by states in fields other than trans-

793

Atlantic flying. These include meteorological ob-
servations which are needed for general weather
forecasting services in countries surrounding the
North Atlantic, observations useful to maritime
interests, and guarding of radio distress fre-
quencies for surface shipping. This concept had
always been rejected, however, and both the First
and Second Conferences led to agreements with
theoretical responsibilities related solely to the
numl>er of North Atlantic crossings by aii'craft of
each participating state.

At the Fourth ( onference the United States and
Canada again took the lead in urging tangible
recognition of the fact that weather movements
in the North Atlantic are generally from west to
east and tliat Western Europe therefore receives
proportionate!}' greater benefits from the ocean
stations network than do North American states.
Some European delegations again opposed recog-
nition of nonaeronautical benefits, but the major-
ity were prepared to modify their previous
position. It was finally agi-eecl that benefits de-
rived from the North Atlantic Ocean Stations
Program are approximately 80 percent aeronauti-
cal and 20 percent nonaeronautical. The ratio of
aggregate nonaeronautical benefits under the
9-station program was set at 75 percent for Europe
to 25 percent for North America.

Spain urged that responsibilities be calculated
on a reduced basis for flights across the southern
portion of the North Atlantic, claiming that fewer
benefits are derived from the Ocean Stations Pro-
gram in that sector. After considerable discus-
sion in the Technical Committee, the Conference
rejected this proposal as one which would unneces-
sarily complicate the already difficult process of
calculating and assessing responsibilities.

The Conference drew up the following schedule
of theoretical responsibilities covering all par-
ticipating states and those whose aircraft were
deemed to receive benefits from the network :

Combined % of Acrojiaiitical
Operating States and NonacronnittieaJ Benefits

United States 37. 16

United Kingdom 15.29

Netherlands 10. 12

France 7. 99

Norway (and Sweden) 7.31

Canada 4.60

Cash Contributing States

Belgium 4. 29

Switzerland 3. 03

Denmark 2. 76

Italy 2. 02

Spain 1. 59

Israel 1. 24

Cuba 0. 87

Portugal 0. 79

Iceland 0. 47

Colombia 0. 47

794

Department of State Bulletin

As ill previous conferences, it was recognized as
virtually impossible to assess actual contributions
strictly in accordance with a theoretical scale. In
tlie first place, tliere were only 21 vessels physically
available for the scheme, divided as follows among
six states :

United States 10

United Kingdom 4

France 2

Netlierlands 2

Norway (and Sweden) 2

Canada 1

Some other states expressed an interest in oper-
ating additional ships if they could be obtained.
This possibility, however, did not mateinalize.
Another major stumbling block was the great dif-
ference in operating costs reported by various
operating states, togetlier with the foreign ex-
change difficulties which would be involved in
maldng cash transfers outside the European area.
After careful examination of all possibilities, the
Conference agreed that the only practicable way
to maintain 9 stations with 21 ships would be to
assign to the United States and Canada, with 11
vessels, the four stations nearest their shores (B,
C, D, and E), leaving it to states outside North
America to operate and finance the other 5 stations
(A,I, J, K, andM).

A worlcing group of maritime experts developed
a feasible plan for manning the latter 5 stations
with 10 vessels on a systematic rotation of patrols
and relief duty. This insured that the operational
responsibilities would be shared on an approxi-
mately equal basis by European vessels. A work-
ing group of tlie Financial Committee worked out
an acceptable plan whereby cash contributions by
Belgium, Denmark, Israel, Italy, and Switzerland
would be divided among the four European oper-
ating states in proportion to operations in excess
of their theoretical responsibilities.

The new agreement, which is subject to accept-
ance by signatory governments, has been signed
by 13 countries: Belgium, Canada, Denmark,
France, Ireland, Israel, Italy, the Netherlands,
Norway, Sweden, Switzerland, the United King-
dom, and the United States.

Spain and Iceland participated in the Confer-
ence but did not sign the agi'eement. They indi-
cated their willingness, however, to make financial
contributions in support of the program. The
Conference expressed the hope that these two
states, and others wliich derive benefits from the
network, would find it possible to become parties
to the agreement.

Entry Into Force and Duration

Tlie agreement will come into force not earlier
than July 1, 1954, when instruments of acceptance
have been deposited witli Icao by governments re-
sponsible for the operation of at least 15 vessels.
It is to run for an initial period of 2 years from

July 1, 1954, with provision for automatic ex-
tension one year at a time unless denounced by one
or more states responsible in the aggregate for at
least two vessels, in cash or in kind. To safeguard
the interests of all participants, the agi'eement
provides that any state is entitled to withdraw
from the scheme as of June 30 in any year upon 12
months' prior notice. In such cases the Council
of Icao is to seek arrangements for redistributing
the obligations of withdrawing states and, if neces-
sary, call a new conference. As under previous
agreements, the Icao Council is to coordinate the
general program of operating the stations in con-
sultation with the states concerned and with such
other international organizations as it considers
appropriate. The Council is to keep the World
Meteorological Organization advised of the mete-
orological aspects of any action which it proposes
to take.

On or before March 1, 1955, each participating
state is to furnish Icao with statistics of North
Atlantic crossings by its civil aircraft in 1955.
EuroiDean operating states are also to submit cost
data for their ships during 1954. Upon receipt of
this information the Council will review the rela-
tionship between costs of European operating
states and the amount of cash which should be
available. If it considers it necessary to establish
a more equitable distribution of responsibilities
among the states concerned, the Council is to cal-
culate a revision of the obligations to pay and the
right to receive cash in accordance with the prin-
ciples on whicli the new agreement is based.

Finally, the Conference requested the Council
of Icao, in consultation with interested states and
with other international bodies, to explore all pos-
sibilities of further improvements in the efficiency
and economy of the ocean stations network, and of
less expensive ways and means of obtaining a suffi-
ciently high standard of meteorological informa-
tion in the North Atlantic.

*Mr. Lister, author of the ahove article, is
Special Assistant, Office of Transport and Commu-
nications Policy, and served as chairman of the
U.S. Delegation to the Fourth ICAO Conference
on North Atlantic Ocean, Statio'us.

Liberian President To Visit U.S.

White House press release dated May 13

President William V. S. Tubman of Liberia has
accepted an invitation from President Eisenhower
to visit the United States in the autumn of 1954.
The Liberian President and his party are expected
to arrive in Washington in the latter part of
October.

In issuing the invitation, President Eisenhower
recalled the traditional bonds and warm feelings
which unite Liberia and tlie United States and
emphasized the admiration of liis fellow citizens
for the achievements of Liberia and for the role it
plays in Africa.

May 24, 1954

795

St. Lawrence Seaway Bill
Signed Into Law

The President on May 13 signed the St. Law-
rence Seaway Bill, "providing for creation of
the Saint Lawrence Seaway Development Corpo-
ration to construct part of the Saint Lawrence
Seaway in United States territory in the interest
of national security ; authorizing the Corporation
to consummate certain arrangements with the
Saint Lawrence Seaway Autliority of Canada rela-
tive to construction and operation of the seaway;
empowering the Corporation to finance the LTnited
States share of the seaway cost on a self-liquidat-
ing basis; to establish cooperation with Canada
in the control and operation of the Saint Lawrence
Seaway; to authorize negotiations with Canada
of an agi'eement on tolls ; and for other purposes"
(S. Doc. 2150).

Among those present at the signing ceremony
at the \Vliite House were the Canadian Ambassa-
dor, A. D. F'. Heeney; Sen. Alexander Wiley,
chairman of the Foreign Relations Committee;
Sen. Homer Ferguson, member of the Foreign Re-
lations Committee; and Rep. George A. Dondero,
chairman of the Committee on Public Works of
the House of Representatives. Following are
texts of remarks made at the ceremony.

Across the river we have held hands. Now we
cannot part. We are one in a great adventure — to
build for the future of America.

I congratulate you and the American people.

Senator Ferguson

Mr. President, Mr. Ambassador, Members of
Congress : This is really a great occasion. I know
it will be historic because it is a symbol of friend-
ship between the United States and our friend,
Canada, to the north.

Coming from Michigan, one of the border
States, this has been a dream for many years. Mr.
President, when we look at this map we can see
that soon transportation can come into the heart-
land of America. Transportation, whether it be
by ship, plane, railroad, truck, or automobile, is
the lifcblood of commerce and trade. And I know
that history will say that we today were looking
into the future.

It means a better United States and a better
world, I am sure. This occasion is really one that
we can all be happy about — that this administra-
tion could bring this about.

White House press release dated May 13
President Eisenhower

I am very happy, in the presence of this distin-
guished company, to sign this bill.

I think it is particidarly fortunate that we have
with us the Ambassador from Canada, because this
bill is intended to set in motion the great project
which will operate to the benefit of both our
countries.

This marks, of course, the legislative culmina-
tion of an effort that has taken 30 years to reach
this point. Now work can begin on the great
project itself. That work, we all hope, will pro-
gress rapidly without interruption to a successful
completion, so that the benefits of this great
project can come to all our people on both sides
of that great river.

Senator Wiley

Mr. President, I want to congratulate you. His-
tory will now record that at long last the dream —
yes, the hope, of countless millions is being ful-
filled.

Back of us stands the Ambassador of Canada.
It is a symbol that we are united in the greatest
effort the two nations ever undertook, in building
a waterway here that will mean happiness, health,
and prosperity for countless millions to come.

Representative Dondero

Mr. President, the people of the United States,
through their Congress, have determined that they
will participate with their good neighbor to the
north, Canada, in the construction of the St.
Lawrence Seaway. It has been the dream of many
decades. It is one of the greatest waterways in
the world and will be one of the great arteries of
coimnerco in the world. I think that it will con-
tribute much to the economic welfare and also to
the national defense of both the United States anrJ
Canada.

Mr. President, five of your predecessors advo-
cated and endorsed the building of the St. Law-
rence Seaway. It has been delayed 30 or 40 years,
and now under your great leadership this mighty
project, the master project of the North American
Continent, is to become a reality.

I want to add just one more thought, and that is
this : that in the days to come, the American peo-
ple, the Canadian people, the Continent of North
America, will receive great benefit from what we
are doing now.

I am proud to be a Member of the 83d Congress,
to have had some part in bringing this very happy
day about, as Chairman of the Committee on Pub-
lic Works of the House of Representatives.

To you, Mr. President, and your administration,
must go the credit for bringing about the begin-
ning of this great project. Only one thing re-
mains now, to make the seaway an assured fact,
and that is your signature to the bill before you.

796

Department of State Bulletin

The Refugee Relief Program: A Challenge to Voluntary Social Agencies

hy Frank L. Aiierbach

Special Assistant to the Director of the Visa Office ^

The Refugee Eelief Act, which became law with
the President's signatiu'e on August 7, 1953, and
remains in effect until January 1, 1957, attempts
to help refugees from Communist persecution,
natural disaster, and military operations to come
to the United States as immigrants. It also con-
tributes to the solution of problems resulting from
population pressures in Italy, Greece, and Holland
by facilitatnig the immigration from those coun-
tries of certain close relatives of American citizens
and permanent resident aliens. In addition, the
act facilitates the immigration of orphans and
permits certain aliens already in the United States
as nonimmigrants to become permanent residents
of the United States. The maximum number of
aliens who may benefit from the act's provisions
is 214,000.

The important feature of the new act is that it
permits these 214,000 aliens to become permanent
residents of the United States without being sub-
ject to the quota limitations of our regular immi-
gration laws. In other words, aliens coming to
the United States under the Refugee Relief Act
may come in addition to those who are permitted
to enter under the Immigration and Nationality
Act.

For the benefit of those who so far have had no
or little contact with the new act, I should like
to summarize briefly its more important provi-
sions.

There are four distinct groups of aliens who
may benefit by the act and four distinct procedures
have to be followed. The largest group, 186,000
out of 214,000, are refugees, expellees, and escapees
from Communist persecution, natural disaster,
and military operations, both in Europe and Asia.
Visas to 90,000 of these refugees, escapees, and
expellees may be issued in the German Federal
Republic, the Western Sector of Berlin, or in
Austria; 10,000 in the territory of the member

' Address made before the Common Council for Amer-
ican Unity and the National Conference on Naturalization
and Citizenship at Atlantic City, N.J., on May 11 (press
release 230 dated May 10).

nations of the North Atlantic Treaty Organization
on the Eurojiean Continent and in Turkey,
Sweden, Iran, and Trieste; 45,000 in Italy, 15,000
in Greece, 15,000 in Holland, 2,000 in the Near
East, 5,000 in the Far East, and another 2,000
each to Polish veterans and Chinese refugees re-
gardless of their place of residence at the time of
visa application. Refugees within this group
could be escapees from behind the Iron Curtain,
victims of floods in Holland or of earthquakes in
Greece.

In order to bring a refugee or escapee to the
United States, assurances of employment, housing,
and against becoming a public charge must be
given by citizens of the United States. Special
assurance forms have been prepared by the De-
partment of State which are to be used by citizen
sponsors. Different assurance forms are to be
used depending on whether the sponsor knows the
alien he wishes to bring to the United States or if
he designates only the skills and qualifications
such alien should have but relies on a voluntary
social agency or another agent to select for him
an alien having these qualifications.

The degree to which statements contained in
these assurances have to be corroborated by addi-
tional evidence such as statements from employ-
ers, bank letters, copies of income-tax returns,
et cetera, depends on whether the assurance is
endorsed by one of the voluntary social agencies
recognized "for this purpose. If one of the some 20
recognized agencies underwrites an assurance pre-
pared by an individual citizen, generally speaking,
the agency's underwriting relieves the sponsor of
the necessity of procuring documentation corrob-
orating his public charge and housing assurance,

Italian, Greek, and Dutch Relatives

The second largest group of aliens benefiting
from the Refugee Relief Act are certain close
relatives of American citizens in Italy, Greece, and
Holland who qualify for preference quota status
under our regular immigration laws. Fifteen
thousand Italian relatives, 2,000 Greek relatives,

May 24, 1954

797

and 2,000 Dutch relatives are m this group, which
includes parents, brothers, and sisters of American
citizens as well as sons and daughters of American
citizens who are not entitled to nonquota status,
being married or over 21 years of age ; and finally,
husbands, wives, and children of permanent resi-
dent aliens in the United States. The significance
of the Refugee Relief Act in relation to this group
of aliens is that many of them, due to the quota
limitations of our regular immigration laws,
would have to anticipate a waiting period of many
years before they could come to this country while
under the Refugee Relief Act, within the numeri-
cal limits provided therein, they may come as soon
as they fulfill the requirements of the law.

Visas Issued in the Netherlands
Under Refugee Relief Act

Press release 256 dated May 14

The following information loa^ received on May li
from the American Embassy at The Hague:

Scott Mcljond, Administrator of tlio Refugee
Kelief Art, today pi-esr>nted to a family of eight the
first Public Law' 203 (the Refugee Relief Act) visas
issued in the Netherlands In a ceremony at the
Rotterdam U.S. Consulate. The immigrants, whose
departure date has not yet been set, are : Jan
Koetsier, 5G, cattle breeder of Mijdreeht, T'trecht
Province ; his wife, Christina, .5,^ ; their sons Jan,
Jr., 24, Tennis, 22; Gerard, 21; Jakob, 13; and
daughters Marrig.ie, 20, and Christina, 17.

The sponsor is Koetsier's son Henry, 2.5, a dairy
owner who resides at Buena Park. Calif., who im-
migrated to the United States on October 31, 1947,
and was naturalized October 14, 1953.

The Koetsiers, who were on the regular quota
waiting list, applied for admission to the United
States under Public Law 203 on March 31, 19.'>4.

The procedure to be followed in the case of these
Italian, Greek, and Dutch relatives differs mate-
rially from that followed in the case of refugees
and escapees. Petition forms required for these
relatives under the regular immigration laws are
filed and in many cases have been approved for
some time by the Immigration and Naturalization
Service of the Department of Justice. The Serv-
ice verifies the evidence of the relationship be-
tween the relative petitioner in this country and
the alien abroad and notifies the Department of
State of its findings. The Department then au-
thorizes the American consular officer abroad to
grant preference quota status to the alien. In
addition, the relative in this country submits to
the consular officer the usual evidence of support,
such as an affidavit of support or a contract for
employment. The assurances of employment,
housing, and against becoming a public charge
prescribed for refugees and escapees are not re-
quired in connection with the immigration of these
relatives.

Italian and Greek relatives are expected to bene-
fit jjrimarily from this provision. It is worth
noting that spouses and children of brothers, sis-
ters, sons, and daughters of American citizens who
are not entitled to quota preferences under the
regular immigration laws are entitled to consid-
eration under the Refugee Relief Act, a significant
effort to prevent the separation of families in
migration.

The third gi'oup of immigrants who may benefit
from the Refugee Relief Act are orphans. Four
thousand orphans in any part of the world,
adopted abroad or to be adopted in the United
States, by an American citizen and sjiouse may be
issued immigrant visas inider the Refugee Relief
Act. Projier caution is being exercised by those
administering the law to plan for tlie immigration
of orphatis in such way tliat tlie needs of the child
are protected as much as the interests f)f the com-
munity and the State to which these cliiklren are
destined. I am glad to give recognition at this
point to the fine cooperation we in the Department
of State have liad in this connection not only from
tlie Children's Bureau of the Department of
Health, Education, and Welfare but also the vari-
ous State and voluntary social agencies expert in
and concerned with the welfare of children.

In the case of orphans, assurances of proper
care have to be submitted by the American citizen
who has already adopted the child abroad or who
is planning to adopt the child in the United States.
Different requirements are established depending
on whether tlie adoption has already taken place
abroad or will be initiated in this countrj'. In the
latter case, some of the requirements are an investi-
gation of the prospective adoptive home and par-
ents by a recognized child care agency and an
investigation in the country of the orphan's i-esi-
dence bv a qualified welfare agency concerning the
orjihan s mental and physical health and family
background. It is also required that arrange-
ments have been made with a child care agency
for the supervision of the orphan pending his legal
ado])tion and, in the event the adoption petition
is denied by the court, for the care and resettle-
ment of the orphan.

The fourth and last group of aliens benefiting
from tlie Refugee Relief Act are 5,000 nonimmi-
grants in the United States who entered this coun-
try before July 1, 10.53, and who may be granted
permanent residence status if they can show that
because of events which have occurred subsequent
to their entry to the United States they are unable
to return to the country of their birth, nationality,
or last residence because of persecution or fear of
persecution on account of race, religion, or politi-
cal opinion.

When Congress passed the Refugee Relief Act
it decided tliat it should be administered by the
established operating agencies of the government
under the supervisor}^ jurisdiction of the Adminis-
trator of the Bureau of Security and Consular

798

Department of State Bulletin

Affairs in the Department of State. In addition
to tlie Department of State and its consular of-
ficers abroad, tlie Immigration and Naturalization
Service of the Department of Justice, the United
States Employment Service of the Department of
Labor, the United States Public Health Service
of the Department of Health, Education, and Wel-
fare, the Counter Intelligence Corps of the Army,
and the Treasury Department play an important
part in the administration of the act.

Parts Played by Other Agencies

In addition to the functions it performs under
the regular immigi-ation laws, the Immigration
and Naturalization Service inspects abroad aliens
who apply for visas under the Refugee Relief Act
and determines preliminarily their admissibility
into the United States. It is expected that thereby
the number of aliens will be reduced to a mini-
mum who at the time of their application for ad-
mission at a port of entry are found excludable.

The adjustment of status of 5,000 nonimmi-
grants in the United States to that of permanent
resident aliens authorized by the Refugee Relief
Act is also the responsibility of the Immigration
and Naturalizaton Service. Tlie United States
Employment Service in cooperation with its affili-
ated State Employment Services examines the
authenticity of job orders in connection with as-
surances of employment for refugees and escapees
and also verifies that no American workers would
be displaced from employment by the alien's
admission.

Abroad, officers of the United States Employ-
ment Service will determine the occupational
skills of aliens who are applying for visas under
the Refugee Relief Act and so far as possible
will develop an occupational catalog of visa ap-
plicants with skills for which no assurances have
been given. This catalog will be used in filling
job orders in the United States for aliens identified
only bj' their skill by the prospective employers.

The Treasury Department administer the
granting of loans to finance the transportation of
immigrants from ports of entry to places of their
resettlement in the United States. Officers of the
Counter Intelligence Corps of the Army and spe-
cial officers of the Department of State conduct
security investigations concerning visa appli-
cants. The latter, in addition, prepare the written
rejDort on each applicant for an immigrant visa re-
quired by the act.

As I anr speaking to you today I am glad to re-
port that the vast machinery to put the act into
full operation in various comitries has been set
up as far as conditions permit. At the same time
I would like to give you an insight into the various
problems the Administrator of the Refugee Relief
Program had to contend with before the present
status of the program was reached.

Since the Refugee Relief Act became law on
August 7, 1953, Mr. Scott McLeod, the Administra-
tor of the State Department's Bureau of Inspec-
tion, Security and Consular Aft'airs, appointed Mr.
Robert C. Alexander as Assistant Administrator to
set up the necessary inter- and intradepartmental
organization for the administration of the act.
The Administrator and his Assistant had to tackle
simultaneously a number of problems. The vari-
ous government agencies entrusted with the act's
administration had to be brought together and
had to agree on the lines of demarcation of their
respective responsibilities. Regulations, instruc-
tions, and assurance forms had to be prepared and
discus-sed within the Government. A first and a
second draft of these regulations and assurance
forms was shared with various voluntary social
agencies concerned with refugee work, many of
whom are represented here today. Many of their
recommendations are incorporated in the final
draft of the regulations which were published on
December 3, 1953.=

Simultaneously the Administrator had to re-
solve budgetary questions which by necessity arise
with the inauguration of a new governmental pro-
gram and had to begin a recruitment program of
consular officers and security investigators for
service abroad. This recruitment program had
to be planned carefully so as to conserve available
operational funds as much as possible.

Difficulty of Anticipating Volume

The uncertainty of the volume of immigration
to be anticipated from different parts of the world
under the Refugee Relief Act was, and to some
extent still is, a very serious problem which has
to be faced in connection with the staffing program.

This uncertainty hinges mainly on two points.
One is that no definite or final stalRjig plans can be
made for any one countrj' until the government of
such country has declared its willingness to issue
to each emigrant from its territory a certificate
guaranteeing that he will be accepted back in the
event it should be discovered that he obtained a
visa by fraud or by misrepresenting a material
fact. Although negotiations with the governments
of the various countries of the world in which
the Refugee Relief Program could operate were
initiated soon after the act was approved by the
President, only 10 countries or areas have so far
agreed to issue the certificate of readmission.
These countries or areas are Austria, Belgium,
France, Germany, Greece, Italy, Korea, Holland,
Hong Kong, and Japan. Greece and Italy agreed
to the issuance of the return certificate late in 1953 ;
the Netherlands in February; France in March;
Korea, Hong Kong, Germany, Austria, and Japan
in April ; and Belgium in May of this year. The

- IS Fed. Reg. 778.3. For a Department announcement,
see Bulletin of Dec. 21, 19.53, p. 861.

May 24, 1954

799

Netherlands has agreed to the issuance of the cer-
tificate in principle only ; details of the agreements
with this country still have to be worked out. It
will readily be seen that it would be unwise and
wasteful to hire staff as long as it is uncertain
whether, because of the absence of an agreement
concerning the certificate of readmission, the
refugee program can be operated in a given coun-
try or area.

The other important factor which influences the
l^lanning for the Refugee Relief Progi'am is the
difficulty of anticipating the volume of assurances
for the vai'ious groups of refugees, expellees, and
orphans who may come to the United States under
the Refugee Relief Act. Up to April 30, 5,046
assurances have been received in the Department
of State for all groups of refugees, escapees, and
orphans. Of these assurances, 138 are for orphans.
For refugees and escapees in Germany 880 assur-
ances have been submitted; in Austria, 357: in
Greece, 2,726 ; in Holland, 8. The remaining 937
assurances are for refugees and escapees in Bel-
gium, France, Norway, Portugal, Sweden, Japan,
Hong Kong, Israel, Transjord;ui, and other areas
in the Middle and Far East. 604 of the 5,046
assurances are underwritten by voluntary organi-
zations recognized by the Administrator.

I should like to illustrate the existing problem
in the case of Germany. As stated, 880 assurances
have been received for refugees and escapees in
Germany. They may cover some 1,200 to 1,400
persons. Under the circiunstances those respon-
sible for the administration of the act have to de-
cide whether it is administratively sound and
justifiable from the taxpayer's point of view to
send into Germany a staff large enough to issue
visas in these cases within a 1- or 2-montli period
with the possibility that not sufficient additional
assurances are received in time to justifj' the re-
tention of this staff; or whether it would be more
prudent to send a small staff into Germany and
step up staffing as it becomes apparent that suffi-
cient assurances are at hand to complete the issu-
ance of the 90,000 visas authorized for Germany
and Austria. The same problem exists in most
other countries in which the refugee program
could operate.

The situation is quite different in regard to rela-
tives in Italy and Greece since many more ap-
proved visa petitions are at hand than visas are
authorized to be issued for these groups. For ex-
ample, as of April 30 the Department of State
has received 42,111 approved relative petitions for
Italian beneficiaries but only 15,000 visas may be
issued to Italian relatives under the Refugee Re-
lief Act. Should a bill already passed by the
House become law it would be possible that the
45,000 visas authorized for issuance to refugees
in Italy and the 15,000 in Greece also be used for
the issuance of visas to the relative groups in each
of these countries.

Role of Voluntary Social Agencies

What is the role voluntary social agencies can
play in relation to the Refugee Relief Program?
Fii'st of all, agencies can do a very important job
by disseminating accurate information on the
Refugee Relief Act and the opportunity it offers.
While the required assurance forms are available
directly from the Department of State and also
through the various neld offices of the Immigra-
tion and Naturalization Service, the Adminis-
trator appreciates the coopei-ation of voluntary
agencies willing to act as distributing centers for
these forms.

Agencies conversant with the technical require-
ments of the Refugee Relief Act can be of real
service to American communities in assisting with
the preparation of assurance forms and their sub-
mission to the prescribed government agencies.
Agencies with representatives abroad may find
qualified workers to fill the demand for special
skills specified by a sponsor. Other agencies which
are particularly equipped to work with refugees
may apply to the Administrator of the program
for recognition. Once recognized, they may un-
derwrite assurances of an individual citizen and
may certify the availability of housing in the
absence of a public housing authority which can
perform such function.

The role of state and voluntary agencies in the
orphan program of the Refugee Relief Act is of
particular significance since their participation is
required in conducting the investigation of the
proposed adoptive home and parents and of the
orphan himself. Also, in the case of orphans to
be adopted in the United States, as stated earlier,
an appropriate agency has to assume responsibil-
ity for the supervision of the orphan pending his
legal adoption and, if the adoption petition is
denied by the court, for the care and resettlement
of the orphan.

Since the volume of assurances will determine
the pattern and the success of the act's adminis-
tration, obviously the voluntary agencies can make
their greatest contribution by making the law
known throughout the country and by helping
those willing to sponsor refugees with the fulfill-
ment of the law's requirements.

In closing, I should like to bring you the per-
sonal greetings of Mr. McLeod, the Administrator
of the Refugee Relief Program, and his assurance
that all those in the Department of State con-
cerned with the Refugee Relief Act are making
every effort to interpret and administer the law
reasonably, sympatheticalh', and in accordance
with the intent of Congress. We count on your
help and cooperation in making the act better
known throughout the American communities
and to make it successful by relieving the plight
of those who are anxious to find a permanent home
in the United States.

800

Deparfment of State Bulletin

Resumption of Relations
Witli Paraguay

Press release 252 dated May 14

The United States Charge d'Affaires at Asun-
cion informed the Paraguayan Foreign Office on
JMay 13 of the resumption of relations between
the United States and Paraguayan Governments.

General Strike in Honduras

Press release 242 dated May 11

Ai his n£ios conference on May 11, Secretary
Dulles was asked for co7)iment on the general strike
in Honduras and any relation it had to Guatemala.
Mr. Dulles made the following reply:

The indications are that the so-called strike in
Honduras is not entirely a domestic phenomenon.
There is at least an interesting coincidence in the
fact that the strikes have occurred principally in
an area to which the Guatemalan Government re-
cently sent three consuls who have subsequently
been declared persona non grata by the Govern-
ment of Honduras because of their activities.

Bipartisan Foreign Policy

Press release 243 dated May 11

At his news conference on May 11, Secretary
Dulles was asked whether in his opinion hi partisan
foreign policy had deteriorated over the past year
and whether he felt that any Democrat had been
given anything like the authority that he ivas given
as a representative of the opposition party in the
Truman administration. Mr. Dulles replied as
follows:

I myself am not conscious of any deterioration
of bipartisanship in foreign policy. I have had
the most frequent and intimate talks with both
Republican and Democratic members of Congress,
both in the Senate and the House. I have always
been received and listened to with the greatest
courtesy by Democrats as well as Republicans.

I have nothing but satisfaction in my own mind
for the degree in which there has up to the present
time been a nonpartisan approach to this question
of foreign policy, and I hope it will continue that
way. Certainly, I shall do everything within my
power to make it continue that way.

There is no point in disguising the fact that we
have been and are and for a long time will be faced
by the greatest danger, I think, that has ever con-
fronted our Nation, and I think it is indispensable
that there should be bipartisanship. I showed
that myself when the Democrats were in charge

of the executive department of the Government
and did all that I could to contribute toward it,
working principally, of course, with Senator Van-
denberg and Governor Dewey, and in that way
we had a united front with which to face the world.
I am doing all that I can to contribute to making
that possible at the present time, and so far I
have received, and I expect to continue to receive,
cooperation on the part of the Democrats.

It is often, I think, forgotten that David
Bruce, who was the Under Secretary of State when
we came in, continues on in the same capacity in
relation to this administration that I had in re-
lation to the Truman administration. He is a
trusted adviser in relation to many of the most
important aspects of our foreign policy.

World Trade Week, 1954

A PROCLAMATION'

Whereas it is essential for the peace and security of
the free world that our Nation and its friends throughout
the world maintain and increase their individual and
combined economic strength ; and

Whereas the growth and prosperity of the nations of
the free world depend to a significant degree upon the
continued expansion of the exchange of their goods and
services in world markets ; and

"Whereas mutual economic advantages accrue to buyer
and seller, to producer and consumer, and to individuals
and nations through the exchange of goods and services
in world trade :

Now, THEREFORE, I, DWIGHT D. EISENHOWER, Presi-
dent of the United States of America, do hereby proclaim
the week beginning May 16, 1954, as World Trade Week ;
and I request the appropriate officials of the Federal Gov-
ernment and of the several States, Territories, iwsses-
sions, and municipalities of the United States to cooperate
in the observance of that week.

I also urge business, labor, agricultural, educational,
and civic groups, as well as the people of the United States
generally, to observe World Trade Week with gatherings,
discussions, exhibits, ceremonies, and other appropriate
activities.

In witness whereof, I have hereunto set my hand and
caused the Seal of the United States of America to be
affixed.

Done at the City of Washington this eighth day of May
in the year of our Lord nineteen hundred and
[seal] fifty-four, 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.

' No. 3054 ; 19 Fed Reg. 2777.

Aloy 24, 1954

801

Trade With the Philippines

Press release 253 dated May 14

The Department of State in a communication
to the Congress on May 13 requested an 18-month
extension of the period of free entry of Philippine
articles into the United States from July 4, 1954,
to January 1, 1956. Legislation proposed for im-
plementing this request would enable the President
of the United States to bring this extension into
effect by proclamation to cover that period be-
tween the aforementioned dates for which like
treatment is accorded U.S. articles entering the
Philippines.

The draft bill which was forwarded to the Con-
gress was prepared in response to a specific request
from the Philippine Government and as a result of
an agreement that both Governments should seek
an 18-month extension of the present free-trade
period, during which time the basic modifications
which the Philippine Government seeks in the
1946 Agreement on Trade and Related Matters
could be considered.

Sentences by International
Military Tribunal Far East

Press release 246 dated May 12

The Government of India has protested the de-
cision of the signatory powers to the Japanese
peace treaty regarding India's rights to partic-
ipate in decisions with respect to persons sentenced
by the International Military Tribunal Far East.
The U.S. Government's position on this matter is
as follows :

Article 11 of the Treaty of Peace with Japan
provides that the power to grant clemency, to
reduce sentences, and to parole with respect to
persons sentenced by the International Military
Tribunal Far East (Imtfe) may not be exercised
except on the decision of tlie majority of the Gov-
ernments represented on the Tribunal and on the
recommendations of Japan.

To carry out this provision the Government of
the United States consulted with the other Gov-
ernments concerned under the Treaty of Peace:
Australia, Canada, France, tlie Netherlands, New
Zealand, and the United Kingdom. It was unani-
mously agreed among these Governments that the
power to grant clemency, to reduce sentences, and
to parole is a right conferred by the Treaty of
Peace with Japan signed at San Francisco on
September 8, 1951, and therefore comes within the
scope of operation of article 25 of that treaty.

The language of articles 11 and 25 taken to-
gether confines the exercise of this power to the
following Governments, which have already

signed and ratified the Treaty of Peace with
Japan : Australia, Canada, France, the Nether-
lands, New Zealand, Pakistan, the United King-
dom, and the United States. With respect to the
participation of Pakistan it is the view of the
Governments concerned that Pakistan was en-
titled under international law to seek and be ac-
corded the rights and obligations which attached
to British India as a participant in the war
against Japan. Thus in regard to the Treaty of
Peace itself, Pakistan acquired the position of a
power formerly at war witli Japan. Similarly
Pakistan is entitled to be regarded for the pur-
pose of article 11 of the treaty as having been
represented on the Imtfe and is therefore entitled
to exercise the rights conferred by ai'ticle 11 of
the treaty.

It is not the position of the Governments con-
cerned that India's vote was transferred to Paki-
stan. Had India signed and ratified the Treaty of
Peace with Japan, both India and Pakistan would,
in the view of the Governments concerned, have
been eligible to participate in decisions with re-
spect to persons sentenced by the International
Military Tribunal for the Far East.

This position was conveyed by Governments
concerned to the Government of Japan in March
1953 and subsequently to the Government of In-
dia in response to the latter's protest against ex-
clusion from participation in decisions with re-
spect to persons sentenced by the Imtfe.

TREATY INFORMATION

Consular Convention
With Ireland

Press release 250 dated May 13

On May 13 the instruments of ratification of the
consular convention and supplementary protocol
between the United States and Ireland were ex-
changed at Washington by Secretary Dulles and
John Joseph Hearne, Ambassador of Ireland. In
accordance with their terms, the convention and
protocol will enter into force on the 30th day after
the exchange, June 12, 1954.

The convention, signed at Dublin May 1, 1950,
and the protocol supplementary thereto, signed at
Dublin March 3, 1952, were approved by the
United States Senate on June 13, 1952, and ratified
by the President on June 26, 1952.

The convention is the first comprehensive treaty
relating to consular affairs to be entered into be-
tween the United States and Ireland. Like similar
conventions between the United States and other

802

Deparfmenf of State Bulletin

countries, the convention with Ireland contains
provisions relating to the appointment and dis-
tricts of consular officers; their legal rights and
immunities and the inviolability of consular
oflices, archives, and correspondence ; the financial
privileges of consular officers and employees, in-
cluding certain tax exemptions and customs
privileges; the rights of consular officers in con-
nection with the protection of nationals of their
country; notarial acts and other services; the au-
thority of consular officers in connection with
transfers of property; and their authority in re-
gard to shipping matters. Provision is also made
regarding the rights of each country to acquire
real estate for consular purposes.

The terms of the supplementary protocol have
the effect of providing that the authority of con-
sular officers in connection with the settlement of
estates will be governed by the provisions of article
III of the convention relating to the tenure and
disposition of real and personal property, signed
at Washington March 2, 1899, together with ar-
ticles 19 and 20 of the present convention.

Current Actions

MULTILATERAL

Cultural Relations

Convention for the Promotion of Inter-American Cultural
Relations. Signed at Caracas March 28, 1954 (Tenth
Inter-American Conference).' Enters into force be-
tween the countries that ratify upon deposit of such
ratifications with the Pan American Union.

Signatures:

United States Guatemala

Argentina Haiti

Bolivia Honduras

Brazil Mexico

Chile Nicaragua

Colombia Panama

Cuba Paraguay

Dominican Republic Peru

Ecuador Uruguay

El .Salvador Venezuela

Finance

Articles of Agreement of the International Monetary Fund.
Opened for signature at Washington December 27, 1945.

' Two other conventions also concluded at the Tenth
Inter- American Conference were not signed by the United
States (viz.. Convention on Diplomatic Asylum and Con-
vention on Territorial Asylum).

Entered into force December 27, 1945. TIAS 1501.
Signature and acceptance : Indonesia, April 15, 1954.
Articles of Agreement of the International Bank for Re-
construction and Development. Opened for signature
at Washington December 27, 1945. Entered into force
December 27, 1945.
Signature and acceptance: Indonesia, April 15, 1954.

Postal Matters

Universal postal convention, with final protocol, annex,
regulations of execution, provisions regarding airmail
and final protocol to the provisions regarding airmail.
Signed at Brussels July 11, 1952. Entered into force
July 1, 1953. TIAS 2800.

Ratifications deposited: Greece, April 5, 1954; Cuba,
April 14, 1954.

Trade and Commerce

Second protocol of rectifications and modifications to texts
of the schedules to the General Agreement on Tariffs and
Trade (TIAS 1700).' Opened for signature at Geneva
November 8, 1952.
Siimature: Austria, April 30, 1954.

Third protocol of rectifications and modifications to the
texts of the schedules to the General Agreement on Tar-
iffs and Trade (TIAS 1700).' Done at Geneva October
24, 1953.

Declaration recognizing signature as binding: deposited
by Austria, April 30, 1954.

Declaration on the continued application of the schedules
to the General Agreement on Tariffs and Trade (TIAS
1700). Done at Geneva October 24, 1953. Entered into
force October 24, 1953. TIAS 2886.
Ratification deposited: Norway, April 28, 1954.
Declaration recognizing signature as binding: deposited
by Austria, April 30, 1954.

BILATERAL
Israel

Treaty of friendship, commerce and navigation, with
protocol and exchange of notes. Signed at Washing-
ton August 23, 1951. Advice and consent to ratifica-
tion (with reservation) given by the Senate July 21,

1953. Ratified by the President Decemb -r 18, 19.53.
Ratifications exchanged March 4, 1954. Entered into
force April 3, 1954.

Proclaimed by the President: May 6, 1954.

Luxembourg

Agreement relating to the off-shore procurement program.
Signed at Luxembourg April 17, 1954. Enters into
force upon ratification by Luxembourg.

Panama

Agreement for the enlargement and use by the Canal Zone
of sewerage facilities in Colon Free Zone Area. Ef-
fected by exchange of notes at Panama March 8 and 25,

1954. Entered into force March 25, 1954.

' Not in force.

May 24, 1954

803

Forced Labor Behind the Iron Curtain

Statements hy Preston Flotchhis

U.S. Representative in the Economic and Social Council '

THE ENSLAVEMENT OF RACES

D.S./U.N. press release 1910 dated April 23

Forced labor is an anachronism, yet it still
exists in the 20th century. In its most pervasive
form, it is the life worse than death meted out to
those who dare to doubt a totalitarian govern-
ment; a throwback to slavery of the dark ages
employed by the Communist dictator to mass-
liquidate opposition.

Why in this enlightened age do we tolerate it?

Wliy in this council of the United Nations do
we have to talk about it?

We must talk about it, we must discuss the facts
fairly and frankly. For we have before us the
report of the Ad Hoc Committee.^

We recall that only 4 months ago, in December
1953, the General Assembly, aroused by the find-
ings in that report, expressed its strong condemna-
tion of forced labor as a direct contravention of
the solemn obligations of the Charter of the United
Nations.^ This action of the General Assembly
was almost unanimous for there were only 5 votes
against it — ^by those representing the so-called
"woi-kers' paradises" promised by Lenin.

The ideals and undertakings of that Charter
have been well served by the Committee's work.
Its report is regarded almost universally as a
landmark in the history of man's struggle for
freedom from oppression.

The three outstanding jurists who comprised
the Committee have earned the abiding gratitude
of the members of the United Nations. Likewise
the Secretariat of the United Nations, the Inter-
national Labor Organization, and the nongovern-
mental organizations which particii^ated are
deserving of our fullest thanks.

The cause of freedom was also well served by
the willing contributions of many governments.

' Made in the Economic and Social Council on Apr. 23
and 27.

- U.N. doc. E/2431. For the text of the section of the
report dealing with conclusions regarding forced labor
in the U.S.S.R., see Bulletin of Aug. 10, 1953, p. 167.

'For text of resolution, see iUd., Dec. 21, 1958, p. 873.

Outside the Soviet world, the charges have been
reviewed seriously. Governments have given full
cooperation in the presentation of laws, data, and
facts. There have been indications that govern-
ments have reviewed their own practices during
the course of the Committee's investigation. The
facts wliich underlay the Committee's inquiries
were of grave concern to the governments in-
volved. They challenged their consciences and
their moral obligations to their own people and
the people of the world.

Needless to say, we are concerned about practices
of forced labor wherever they may exist. We are
interested in vigorous action by govermnents and
cooperative action which can follow after con-
sideration of the Committee's recommendations.
In this my Government is prepared to participate
within this Council and within the International
Labor Oi'ganization.

Refusals To Cooperate With Committee

It is highly significant — and yet understand-
able— that the Committee's blackest findings
related to the very countries which refused to
cooperate with the Committee in any way.

The utter disregard and contempt for the stand-
ards of human dignity and freedom which the
United Nations represents is clearly shown by the
replies of Czechoslovakia and the U.S.S.R. to the
Committee's inquiries. That contempt is further
evidenced by their continued refusal to cooperate,
even after "the General Assembly had requested
such cooperation in its resolution of December 7,
1953. Some 6 weeks later, on January 22, 1954,
the delegation of the U.S.S.R. notified the Secre-
tary-General that it would continue to refuse to
cooperate, and again characterized the report as
"slanderous" and "provocative." In succession
the delegations of the Polish People's Republic
and of Czechoslovakia followed suit on March 1
and 10, respectively.

These latest replies must be interpreted for what
they ti'uly are — a brazen effort to use the technique
of the "big lie" in combating a series of established

804

Department of State Bulletin

facts that have already shocked the civilized
world.

The members of this Council are familiar with
the findings of tlie Ad Hoc Committee and with
the judicial tone in which they are presented.
The restraint, the understatements, the careful
way in which the three eminent members leaned
over backward in reaching their conclusions, attest
both to their own competence and to the conserva-
tism of their findings.

The three members applied a basic standard of
justice — -tlie standard that an accused /.s- innocent
until proven gudty — even to allegations against
countries that do not accord this right to their own
citizens. They were hampered at every turn by
Iron Cuitain refusals to cooperate. The only
comments the Committee had from the Soviet
world were those made during Council debate.
Even taking them into account, tlie Committee
was forced to conclude that forced labor in its most
reprehensible form was a significant part of the
Soviet structure, and that in parrot-like fashion,
forced labor occupied a comparable place in the
satellite countries. They found the existence of
forced labor used as a political weapon to throttle
any freedom. Wliat this means is that the ma-
jority of the forced laborers are political prison-
ers rather than ordinary criminals in the free-
world sense. And they found a second form of
forced labor. That second form is compulsion to
work for the state as the state commands without
freedom of job choice or movement. By this
means, the Soviet dictatorships extract from
human lives concentrated and cheap labor which
could not otherwise be attracted. That, I submit,
makes men into mere dots on a blueprint, an
anonymous proletariat enslaved by a ruthless
dictatorship.

The personal testimony of the victims who suf-
fered the enslavement found by the Committee is
only summarized in the Report's appendixes.
One wishes that it were possible to publish the full
record for all the world to see; yet one can under-
stand the decision of the Committee not to do so.
The Committee's procedure was criticized by the
representative of tlie Soviet Union in Commit-
tee III of the Eighth General Assembly as part
of the secretive character of the "slanderous" and
"provocative" attack on the U.S.S.R. I won-
der whether the U.S.S.R. would really like to
see the record of the Committee's hearings made
public in all its shocking detail. That record
would sliow not only forced labor, but evidence
on other violations of human rights and decent
standards — the tragic breaking up of homes, the
separation of husbands and wives, of mothers from
their children, the use of brutality, the imposition
of unreasonable and arduous tasks on women and
children, the cruel transition from dreams and
hopes of the future to the nightmare of prison
camp life — in sum, the shattering of countless
human lives.

Experiences of Victims in Soviet^ Labor Camps

Let me give you only a partial summary of the
actual experiences of 118 former inmates of the
Soviet Union's forced labor camps — farm workers,
unskilled laborers, bookkeepers, managers, engi-
neers, journalists.

In most instances the victim was picked up in
the dead of night and taken away from his home,
permitted to bring only the clothes he wore. He
was subjected to lengthy and repeated interroga-
tion, many times accompanied oy psychological
coercion or physical violence.

After their inquisition, the victims usually were
subjected to some kind of rigged "trial," although
some were sent to forced labor camps without
trial. Some were tried in absentia. There ap-
pears to l3e no rule as to whether the victim has a
right to defend himself or obtain le^al defense;
defense counsel sometimes was provided, some-
times not. Sentences sometimes were pronounced
after trials lasting not more than 15 minutes.
After the trial the victims were transported to
forced labor camps, usually in guarded freight or
cattle cars.

"We got 400 grams of salt fish every two days,
and 300 gi-ams of bread daily," one former inmate
said. "Sometimes we went two or three days
without water. Usually they gave us one pail for
70 persons to scramble at. Whoever was quick
got something to drink, many did not drink at all."

The camps and cells usually consisted of bar-
racks, infirmary, kitchen, and administration
buildings enclosed by barbed or electrified wire
and guarded by watch towers and patrolled by
clogs and armed guards. Many of the camps in-
cluded women prisoners receiving treatment sub-
stantially the same as that provided for the men.
While usually the women were given separate
quarters, and penalties were provided for contact
between men and women prisoners, the stories of
the former inmates revealed instances of sadism
and depravity which are revolting in the extreme.

More often than not food in the camps was
rationed according to whether the victim fulfills
his work quota.

"Anyone who was unable to meet the quota re-
ceived 400 grams of bread," one former inmate
reported. "Whoever exceeded the quota got 800
grams."

The great majority of those who have reported
on forced labor camp conditions say that the
clothing issued was inadequate.

One man had this to say :

Theoretically, we should have been issued full clothing,
but what we got was in a wholly bad condition. Torn,
dirty, and in holes. The shoes were very bad. Prisoners
were not .supposed to be sent out barefoot, but in reality
the dogs sometimes tore the clothes. But it wiis especially
from the hard work that the clothes delerioraled.

Usually the camps had a doctor but frequently
he was himself one of tlie prisoners and often all
medical care was in the hands of nurees. Usually

May 24, 1954

805

tliere was an infirmary but that was not always the
case, and when there was one the reports over-
wlielmingly indicate that medicines, bandages, and
so forth were inadequate.

In these circumstances the death rate was high.
The most common causes were exhaustion and mal-
nutrition, exposure to extreme climatic conditions,
accidents at work, and occasional epidemics.

"Most prisoners died of dysentery, complete ex-
haustion, and colds and their aftermath," a former
prisoner said.

A victim might or might not be able to send and
receive mail. "Wliere allowed, it visually was
limited to one letter per month and all incoming
and outgoing letters and packages passed through
a censor.

Refusal to work was met by severe punishment.
One victim reported :

For example, 350 prisoners struck for work closer to
their specialties, for an S-hour day and for separation
from criminals. They starved for 15 to 40 days.

All were shot. In other cases protestors were promised
improvements, then the promises were never made good.
Tliey were sent to the assignment office and then to other
camps. Or they were sent to solitary. Every day there
were those who refused to work and go solitary. If an
individual refused to work, it was considered a crime, but
it was worse if they refused in a group. The individual
would get 1, 2, 3 years added to his sentence, solitary for
months, 300 grams of penal ration.

It appears, moreover, that there was little if any
relationship between particular "crimes" and par-
ticular punishments. Almost any punishment can
be meted out for almost any "crime."

"The punishment barracks were terrible. They
were dark undergroinid vaults, without heat, light,
or blankets. Beds were just boards. Sometimes
people were fed 300 grams of bread (dark) a day,
sometimes not," as one man described the situation.

Frequently one of the worst features of the camp
was the group of habitual criminals known as the
"blatnois." Descriptions of their activities indi-
cated that they plagued the other prisoners, stole
their belongings, and forced them to turn over food
under threats of violence. They fought among
themselves and sometimes murdered one of their
own number or a noncriminal prisoner. These
activities of the blatnois were rarely punished, if
at all.

We have heard rumors of improvement in the
camps occasioned by the Ad Hoc Committee's
work. And of course there were the so-called
amnesties. The U. S. S. R. granted one a year ago
and the "sovereign" states that constitute the
Soviet sphere of influence copied the Soviet decree
and issued it with minor adaptations. But all
these amnesties carefully avoided releasing politi-
cal prisoners.

If there has in fact been improvement of any
kind in the official use of forced labor, the world
is owed a statement of the situation by the coun-
tries which stand accused. If the U. S. S. R. and
its satellites have any respect for the standards
upon which the United Nations rests, the Iron

Curtain should be raised and a full and frank dis-
closure should now be made.

Despite the intensity of its labors, the Commit-
tee was not able to finish its task. Notably in the
case of Albania and Communist China, the Com-
mittee was unable to pursue its inquiry to a con-
clusion. Yet it should be noted that the Commit-
tee did not dismiss the allegations against the
Governments of Albania or Communist China,
as it did in a number of cases where it found no
evidence.

Evidence From Albania

Stringent censorship has been imposed by the
Enver Hoxha government to prevent the outside
world from learning about Albania's internal af-
fairs, including the forced labor conditions.
Tourists, correspondents, and other writers from
democratic countries are barred out. Albanians
are barred in — by law and by armed border
guards. Laws, decrees or administrative orders,
court proceedings, internal political events, any or
all afi'airs of state are printed by Albanian news-
papers only as the government sees fit.

Is it any longer strange, therefore, that the Ad
Hoc Committee, in its own words, could not obtain
documentation with regard to Albania ?

But there are ways of getting fragmentary facts
on what is taking place in that shrouded state.

I use an Albanian newspaper to show that the
Hoxha regime is committed to a policy of forced
labor. I quote from a report printed in the Al-
banian newspaper Bashkimi on May 23, 1952. It
is a report of a speech made by Bilbil Klosi, Min-
ister of Justice, in presenting a new penal code
to Parliament. Here are some of his officially re-
ported words: "What are the general principles
of the draft of the code? They are the principles
of the Soviet Penal Law. In the crimes against
the state complicity has still a larger meaning.
In these crimes merely the participation in an
anti-government group is considered an accom-
plished crime . . ."

Under the topic of penalties, the Minister of
Justice said :

The jienalties are intended not only to punish the cul-
prits but to educate them and combat unstable ele-
ments . . . The principal penalties are death, imprison-
ment, deportation for corrective labor, corrective labor
and public censure . . .

The testimony of 300 Albanians who fled the
black tyranny of their country tells the story of
the men who have sutlered under this regime.

Their story is the doleful litany recited by vir-
tually all tlie countless men and women and chil-
dren initiated into that bleak fraternity — Com-
munist "educative" labor. It is the harrowing
tale of the rap on the door at midnight — the accu-
sation— the inevitable sentence.

Among these histories is the account of Reshad
Agaij, a stenographer on the same newspaper
Bashkimi during the early days of the Commimist

806

Deparfmenf of Sfafe Bulletin

regime. Two weeks before Christmas in 1946 —
almost 4 years before the new penal code was
proposed — Agaij was arrested by the Albanian
political police. He was accused of passing on
to others news broadcasts by the British Broad-
casting Corporation, dissemination of propaganda
J against the government, contacts with reaction-
'aries.

Then came the sham trial, the futile protesta-
tions of innocence, the imprisonment, the trans-
fer to a labor camp in the district of Tirana, and
tlien another transfer to the Vlodishti camp in the
Korea District where existence became a night-
mare. Windowless barracks, in which the doors
remained open summer and heatless winter, and
on the floors on which exhausted men slept
ci'owded shoulder to shoulder. Sanitary facili-
ties? The camp's 1,400 forced laborers shared
tliree toilets, drew water for washing and drink-
ing from a single fountain. Not once in a span of
IJ months was the camp disinfected. Between
the 1,400 forced laborers and mass contagion stood
three doctors — convicts, too. Their medicine chest
consisted solely of atebrin, which they could not
administer without approval of the camp authori-
ties. The work day began at 5 a. m. after a
meager breakfast of bread and bitter synthetic
te:i, and ended at 6 p. m. Each laborer was
goaded to fulfill the camp norm of ditch digging.
Failure meant reduction of the mean ration and
])liysical punishment. In less than one year 140
inmates finished tlieir "education" and were freed
fiom the camp — by death.

Let me now turn to China — the mainland dom-
inated by the Communists.

Red China's Advocacy of Forced Labor

Perhaps the blandest acknowledgement that the
Communist regime in China is employing forced
labor came from Lo Jui-ch'ing, Minister of
Public Security, in an article published in the
Peiping Jen Min Jih Pao. The article, titled
"The Mighty Movement for the Suppression of
Counter-Revolutionaries." acknowledges in a
single paragraph that forced labor is used to
liquidate and reform enemies of the Peiping
regime, and that it — forced labor — is of great
economic as well as political significance.

I read you that paragraph :

The subjection of counter-revolutionaries to forced
labor is an indispensable means for the liquidation of
the counter-revolutinnar.v class, as well as a basic policy
for the thorough reform of the culprits into new human
beings. This sort of reform is a combination of political
reform coupled with labor reform, as well as a com-
bination of punishment and education. ... It is up to
all levels of people's governments and various public
security orj-'ans to pa.v adequate attention to and to
make a success of this aspect of work which is pos-
sessed of the greatest political and economic significance.

In that same article Lo stated that — and I
quote — "large numbers had been sentenced to

prison terms and subjected to compulsory reform
through labor."

Chinese Communist advocacy of forced labor
goes back to the very beginning of that regime.
Communist chairman Mao Tse-tung, in the early
days, gave a speech in which he made it explicit
that he intended, as he put it, "to re-educate the
reactionary classes anew through work." He
added: "If they are unwilling to work, the
people's state will compel them to work."

I quote another Chinese Communist leader,
Premier Chou En-lai.

At the third session of the National Political
Consultative Conference he reported :

In compliance with the directives of Chairman Mao
(Tse-tung) . . . we have decided that to those who have
"blood debts" or those counter-revolutionary elements
who have inflicted serious damages to the national Inter-
ests, we must hand down the death sentence and have
them executed. To those who deserve the death sen-
tence but who have no "blood debt" or inflicted less seri-
ous damages to national interests, we would still hand
down the death sentence but would have their execution
deferred for a period of two years, during which they
would do forced labor on i)robation.

The meaning of that statement is clear. It is a
naked use of the death threat to exact forced labor
to the utmost.

These quotations will convince any person with
an open mind that the Communist regime in China
has plainly stated its intention to use forced la-
bor— and has told the world why and how it
would use it.

That it has been used is proved by a report on
the work of the Kwangtung Provincial People's
Government for a 10-month period. Ku Ta-
Chuan, vice governor of Kwangtung Province,
said that 1,571 cases of what he called counter-
revolutionary attempts were exposed, involving
the arrest of nearly 90,000 persons. Of this num-
ber, he said, some 28,000 were shot and the re-
mainder were sentenced to reform through hard
labor.

It was in a camp for such "reform" that Li po-
Shen, former secretary of Dr. Sun Yat-Sen,
perished. Too ill to take boiled rice in a camp
that made no provision for medical aid, he tried
to get rice water instead. For this he was beaten
until he collapsed and the same evening he died,
"uneducated" to the end of his 60-odd years.

I should like to refer briefly to another account
of Chinese toil on the mainland, by Brajkishore
Shastri, a prominent member of the Praja So-
cialist Party of India who visited Communist
China last April and May. His impressions of
a 6-weeks stay in China were published in Bombay
in Janata^ the Praja Socialist Party weekly.

Telling of his visit to the Yangtse River Valley
Project, he said :

About .5,000 laborers were at work. Every piece of
work, from breaking stones, cutting a tunnel, or removing
rocks, was being done by man's bare hands. The meager
implements the laborers were using were like museum
pieces. As soon as we got out of our omnibus, we were

Moy 24, 1954

807

providecl with heavy colored glasses and thin veils for
protection against dust storms. The laborers did not
have any such facilities.

I was horrified. After all, a human being is not a beast.
Even for reconstructing a country he should not be used
as a tool of convenience.

Just a little more of Mr. Shastri's account :

Most of the laborers there had been imported from
distant places ; even if they wanted, they were not al-
lowed to give up their present jobs to try for new ones
elsewhere. The Communist party of China and Chairman
Mao Tse-tung had decreed employment for all ; perhaps
it is enforced labor like this that has in the West pro-
voked descriptions like "labor concentration camps" and
"forced labor."

Perhaps criticism may be leveled at the fact
that in botli Communist China and Albania the
instances of forced labor cited and the laws under-
lying the forced labor programs date back 2 years
or more. Perhaps some of you may be tempted
to say this is all old information. Do not j'ield
to that temptation. For this is new — this is a
monster whelped in our time and nurtured to
dragon proportions since the end of the last war.
It is, moreover, a monster in the image of the
Kremlin, set loose anew in each land that has been
enslaved. Even now it is awaiting license to roam
the Associated States of Indochina.

Tlie means we employ to present the facts of
forced labor to the world must be those which are
most productive of efficient operation. The work
of the A d Hoc Committee has laid a solid founda-
tion for that which lies ahead. There is merit to
the proposition that the Committee's life be con-
tinued. The United States is prepared to support
a proposal of this kind. It is our view that we
must have an expert mechanism to evaluate evi-
dence placed before the United Nations on the
existence of forced labor. At an appropriate
later date, the United States Government may
wish to lay such proposals before the United
Nations.

For the present, however, the continuation of
the exploration that has been begun, on the basis
of the solid principles established by the Com-
mittee, can well be entrusted to the Secretary-
General of the United Nations and the Director
General of the International Labor Organization,
acting jointly.

Purposes of Joint Resolution

The joint resolution which we have introduced,
together with the delegations of Ecuador, France,
Norway, Turkey, and the United Kingdom, car-
ries out this thought. It provides, in paragi'aph
5 (b), for the submission of new information, of
whatever type, on systems of forced labor, whether
de jure or de facto. It permits information to be
submitted by responsible sources — member gov-
ernments, specialized agencies, and nongovern-
mental organizations in consultative status. Gov-

ernments concerned are given an opportunity to
comment on the information thus submitted. The
resolution further provides for the inclusion of
this information, together with any comments
that goveriuuents concerned may have submitted,
in a report to be made to the 19th session of this
Council.

I want to make quite clear the nature of the
report which the joint resolution before the Coun-
cil would authorize, and also what this resolution
does not authorize.

The language of the resolution is carefully
chosen. It envisages a report based on new in-
formation. This would exclude a re-presentation
of the material in the Ad Hoc Committee's report.

It envisages a report based on infonnation, and
not on unsupported allegation.

It envisages a report dealing with systeins of
forced labor, in the sense that such systems were
defined and elaborated by the Ad Hoc Committee.
It does not envisage a report which includes in-
fonnation on a great many other matters. To be
specific, this resolution does not authorize the in-
clusion of — and I am going to borrow a phrase
and use it where it is really applicable — of "slan-
derous and provocative" irrelevancies similar to
those which the Ad Hoc Committee dismissed.

The responsibility for preparing a careful re-
port of this character is a heavy one. I am sure
that the Secretary-General and the Director Gen-
eral of the International Labor Organization will
carry out their responsibilities in a manner that
will make their report a notable addition to the
work begun by the Ad Hoc Committee.

The resolution also asks for the cooperation of
governments who have not replied to the question-
naire the Committee sent them. This is an im-
portant step in the gathering of further informa-
tion on forced labor and carries out the desires of
the Eighth General Assembly. Such information
would also be included in the report of the Sec-
retarj'-General and the Director General of the
International Labor Organization.

But even while we continue to explore the facts
further, we must not weaken in our condemnation
of those inhuman practices which have been so
forcefully brought to our attention. The resolu-
tion before the Council unequivocably condemns
forced labor and, following the Ad Hoc Commit-
tee's recommendations, appeals to governments to
reexamine those laws and practices which have
occasioned this inquiry.

The United Nations has been characterized as
the conscience of the civilized world. I earnestly
commend adoption of this resolution as a signal
that that conscience is awake.^

' The resolution (U.N. doc. E/L 588/Rev. 1) was adopted
by the Economic and Social Council on Apr. 27 by a vote
of i;!-2 (Czechoslovakia, U.S.S.R.)-3 (Egypt, India,
Yugoslavia ) .

808

Department of State Bulletin

REFUTATION OF SOVIET CHARGES

D.S./U.N. press release 1911 dated April 27

I feel impelled to take a few minutes of the
Council again to set the record straight. I feel
that charges were made by the delegate from
Soviet Russia against my country which were not
facts, which were slanders, and I think we should
refer to the record to get the matter completely
straight.

I take his charges one by one. In the first in-
stance, he stated that the Ad Hoc Committee ap-
pointed to investigate conditions of forced labor
throughout the world was a stacked Committee,
a Committee that was stacked, and he implied
that it was stacked against Soviet Russia and her
satellites. Well, who are the members of the
Committee? They were three eminent jurists.
And what countries did they come from? They
came from India, Norway, and Peru, as we all
know. Now, is there any implication in that
makeup of a Committee that it should be stacked
for or against any country that is represented
around this table or is represented in the United
Nations? By any stretch of the imagination
was there any attempt to stack that Committee
or to make its findings favor or disfavor any one
country or group of countries? No. It was a
thoroughly impartial job done by an eminent
group of jurists who were dedicated to one thing,
and that was to find the facts.

The Soviet delegate also said that the United
States was the main speaker and he said that I
asked why do we have to discuss forced labor.
That is correct. I asked that question and again
I refer to the record and here is my answer. I
said, "We must discuss the facts fairly and
frankly. For we have before us the report of
the Ad Hoc Committee."

The Soviet delegate quoted at length from the
statements of one Stetson Kennedy as his only
source of information. It so happens that the
Ad Hoc Committee examined the charges of Stet-
son Kennedy. They went through them thor-
oughly and the record shows the extent of the
examination. And what did they do with the
charges? They dismissed them as unfounded. I
refer you to that report and I would suggest to
the delegate from Russia that he read the report.

The Soviet representative next referred to wet-
backs. Well, now, there has been some inference
around this table on two occasions that wetbacks
were something in the United States that people
did not like to talk about. Well, it happens that
I live only 100 miles north of the Mexican border
and I spend quite a little time occasionally in
Mexico. I know what wetbacks are and I know
Mexico because Mexicans are as fine neighbors as
any country could possibly want to have.

Now, wjiat are wetbacks? Wetbacks are Mex-
ican nationals who seek to come into the United
States to work on farms voluntarily in order to

get the higher wages that happen to pertain in
the United States. That is all a wetback is. The
arrangements with regard to legal immigration —
the arrangements between the great Republic of
Mexico, our neighbor on the south, and the United
States — are thoroughly incorporated in the treaty
and agreement dated March 10, 1954, which has
been released to the public. I would refer the
delegate from Soviet Russia to read that agree-
ment.

A wetback, who is an illegal immigrant, is a
man that is just as free as any citizen of the United
States. He does not happen to be a citizen of the
United States but he would like to come into the
United States to get work. Of course, we have
visa laws and we have to have visas. People have
to have visas to come in from the outside and we
have to see that those visas are properly honored.
It is the machinery with regard to tins with which
the agreement between the Republic of Mexico
and the United States deals. AVe are glad to have
legal Mexican workers. They can go back any
time they want. They get the going wages on
the farms. They are staying here within the
length of time that they are allowed to stay here
and then they are supposed to go back to Mexico.
They do not have to stay here. They can go back
beforehand. I just wanted to clear that up be-
cause this has been mentioned several times and
I happen to know what wetbacks are.

The Soviet representative also stated that these
wetbacks are paid 20 cents an hour. Now, that
is perfectly foolish. Do you think the great Re-
public of Mexico would allow any of her nationals
to come over here and work for wages that were
less than comparable labor would command in
the United States and then would be enslaved by
any other country? Would any of you sitting
az'ound this table allow any of your nationals to
go to any other country and work there under
supposedly alleged bad conditions and be paid low
wages and kept thei'e under duress? Of course,
you would not.

The Soviet representative then stated that in
some conference, some meeting somewhere — I did
not get exactly where — the United States voted
against the right to strike. I did not know what
he was talking about, but I would only answer
that by asking him how many strikes do you have
in the Soviet Union in any one year as compared
to the strikes in the United States? Mind you,
no one is proud of strikes; no one in the United
States wants strikes. But the inherent right of
the working man in the United States is to strike
and with men as they are j'oii are bound to have
dilferences occasionally. Have you ever read of
a strike in the Soviet Union? I haven't.

The Soviet representative next quoted a state-
ment of ex-Secretary of Labor Duikin of the
United States, and he based his conunent on an
article in the American Mercun/ which referred
to an article by Mr. Durkin in the January 1954

May 24, 7954

809

issue of the American Federationist. By impli-
cation the Soviet representative stated that the
American workers were not allowed to exercise
their civil rights. Now mind you, the charge is
that American workers are not allowed to exercise
their civil rights and the authority quoted was
Martin Durkm, former Secretary of Labor. If
the delegate of Kussia had gone to the library
right here in the United Nations and got the
source information of that article that was quoted
in part in the American Mercury from the Amer-
ican Federationist where it appears in toto, he
would have found that it says instead of American
workers not being allowed to exercise their civil
rights, that the voters of the country do not ex-
ercise their rights enough, that we should have a
larger group voting at any election. And we all
agree on that, until you get uj) to the 100 percent
optinuim.

I would like to quote one paragraph from Mr.
Durkin's article :

While this matter [that is, the matter of voting] is
of great concern for all Americans, it is especially im-
portant to trade unions. We know that whatever weakens
democracy also weakens trade unionism, for the first
victim of any democratic nation is the trade union move-
ment. The dictators of Nazi Germany, Fascist Italy and
Communist Russia have followed the identical pattern.
They first crush trade unionism and then move on to
exterminate all other evidence of democracy.

That is what the representative of the Soviet
Union should have quoted. He should liave read
all of it.

The Soviet delegate in all of his statements,
which are just a crazy quilt of propaganda and
charges, has not denied that there is forced labor
in Soviet Russia and I doubt that he will deny it.
Neither did the delegate from Czechoslovakia deny
it yesterday in his speech to this Council. Why?
It is part of their laws. The Ad Hoc Committee
on Forced Labor found that forced labor is the
significant part of the Soviet structure in both
Russia and the satellite countries, that it is a
political weapon used to throttle freedom.

If conditions are so wonderful in Soviet Russia
and her satellites, then why does your country,
Mr. Tsarapkin, prevent any of your people from
leaving the Iron Curtain area, and why do 5-ou
prevent all otliers except an inconsequential few
from coming in ?

Finallj^ I would just like to conclude by asking
the delegate from Soviet Russia these questions:

First, did or did not Soviet Russia vote against
the resolution of the General Assembly of the
United Nations in December 1954, only 4 months
ago, condemning forced labor as a direct contra-
vention of the solemn obligations of the Charter
of tlie United Nations ? Yes or no.

Second, did or did not Soviet Russia refuse to
answer the questionnaire of the Ad Hoc Commit-
tee which was sent to all countries?

810

Third, did or did not Soviet Russia examine
the allegations received by the Ad Hoc Commit-
tee and forwarded to Soviet Russia? I will
answer that question, for I would like to quote
from the Report of the Ad Hoc Committee on page
519 (under "Comments and Observations of the
Government of the Union of Soviet Socialist Re-
publics") : "The Delegation of the Union of
Soviet Socialist Republics to the United Nations
presents its compliments to the United Nations
Secretariat and herewith returns, unexamined, the
documents attached to the Secretariat's letter of
22 November 1952, since these documents contain
slanderous fabrications concerning the Soviet
Union." Now, mind you, they were unexamined
and yet they stated that they contained slanderous
fabrications concerning the Soviet Union. That
evidences a powerful penetration through paper.

Lastly, would or would not the Soviet Union
like to see the whole record of the iicarings of the
Ad Hoc Committee made public in all of its shock-
ing detail ?

Current Legislation on Foreign Policy:
83d Congress, 1st Session

Security and Personnel Practices and Procedures of the
Department of State. Hearings before a Subcommit-
tee of the House Committee on Government Opera-
tions. Apr. 29 and 30, 19.5.3. 212 pp.

Technical Cooimration .\dministration (Educational and
Training .Vctivities). Hearings before a Subcommit-
tee of the House Committee on Government Opera-
tions. June .S, 4, .I, 30, July 2 and 7, 19.")3. 502 pp.

Foreign Service iind Departmental Personnel Practices
of the Department of State. Hearings before a Sub-
committee of the House Committee on Government
Operations. Dec. 2, 3, and 4, 1953. 171 pp.

83d Congress, 1st and 2d Sessions

Stockpile and Accessibility of Strategic and Critical Ma-
terials to the United States in Time of War. Hear-
ings before the Special Subcommittee on Minerals,
Materials, and Fuels Economics of the Senate Com-
mittee on Interior and Insular Affairs pursuant to
S. Res. 143, a Resolution To Investigate the Acces-
sibility and .-Vvailability of Supplies of Critical Raw
Materials. Part 4. International Materials Confer-
ence, Oct. 21, 1953, and Jan. 5, 13, 14, 15, and 18, 1954.
1.1 SI pp.

Importations of Rye and Barley. Hearings before a Sub-
committee of the Senate Committee on the Judiciary
on Importations of Rye and Barley and Their Effect
on Farm Price Programs. Sept. 23, 24, Nov. 30, 1953,
and Jan. 19, 1954. 81 pp.

Stockpile and Accessibility of Strategic and Critical Ma-
terials to the United Stales in Time of War. Hear-
ings before the Special Subcommittee on Minerals,
Materials and Fuels Economics of the Senate Com-
mittee on Interior and Insular Affairs pursuant to
S. Res. 143. Part 2, Stockpile, General Services Ad-
ministration, Office of Defense Mobilization, Depart-
ment of Defense, and Tactical Militarv Experts,
Sept. 23, Oct. 15, 16, 17, and Dec. 22, 1953, and Feb. 2.
1954. 825 pp.

Department of State Bulletin

Establishment of Foreign Claims Settlement Commission,
Liquidation of Reconstruction Finance Corporation

Messages of the President to the Congress

TRANSMITTAL OF
REORGANIZATION PLAN NO. l^

I transmit herewith Reorganization Plan No. 1
of 1954, prepared in accordance with the Reorgan-
ization Act of 1949, as amended.

The reorganization plan establishes a new Gov-
ernment agency, the Foreign Claims Settlement
Commission of the United States ; transfers to that
Commission the functions of the War Claims Com-
mission and of the International Claims Commis-
sion of the United States; and abolishes the latter
two Commissions.

The Foreign Claims Settlement Commission
will be composed of three members appointed by
the President by and with the advice and consent
of the Senate. The President will designate one
of the members as Chairman of the Commission.
The Chairman will be responsible for the internal
management of the affairs of the Commission.
The reorganization plan contains provisions de-
signed to assure smooth administration of func-
tions during the period of transition to the new
organization.

The War Claims Commission was created as a
temporary agency by the War Claims Act of 1948.
The Commission was made responsible for settling
certain claims of former United States World War
II prisoners of war, civilian internees captured or
in hiding to avoid capture in the Philippines,
Guam, Wake Island, and the Midway Islands, and
certain religious organizations in the Philippines
which had aided American forces during the war.
In 1952, the Commission was assigned, addition-
ally, the administration of claims of Philippine
religious organizations which sustained losses of
their educational, medical, and welfare facilities
in the war, and of benefits to United States prison-
ers of war for inhumane treatment during intern-
ment by the enemy.

From its inception in 1949 to April 1, 1954, ap-
proximately 500,000 claims were filed with the War
Claims Commission, and approximately $134,000,-

' H. Doc. 381, SSd Cong., 2d sess.

000 was paid to claimants. Approximately 96,000
remaining claims are in the process of settlement,
and the Commission must complete action on them,
together with such appeals as may be filed, by
March 31, 1955.

The International Claims Commission was es-
tablished within the Department of State by the
International Claims Settlement Act of 1949. Its
immediate function was to adjudicate claims cov-
ered by a settlement of $17,000,000 which was de-
posited with the Government of the United States
by the Yugoslav Government primarily to com-
pensate our nationals for losses sustained through
nationalization of properties. The act also au-
thorized the Commission to settle such claims as
might be included later in any similar agreement
between the United States and a foreign govern-
ment. Subsequently, the Commission was as-
signed the administration of a $400,000 settlement
negotiated with the Government of Panama.

From its establishment in 1950 to April 1, 1954,
the International Claims Commission has settled
531 claims out of a total of 1,622 filed. Of this
total, 1,555 claims were against Yugoslavia and
67 were against Panama. Under the act, settle-
ment of the remaining Yugoslav claims must be
completed by December 31, 1954.

The accompanying reorganization plan has sub-
stantial potential advantages. The Foreign
Claims Settlement Commission will be able to ad-
minister any additional claims programs financed
by funds derived from foreign governments with-
out the delay which has often characterized the
initiation of past programs. Moreover, the use of
an existing agency will be more economical than
the establishment of a new commission to admin-
ister a given type of foreign claims program.
Consolidation of the affairs of the two present
Commissions will also permit the retention and
use of the best experience gained during the last
several years in the field of claims settlement. The
declining workload of current programs can be
meshed with the rising workload of new programs
with maximum efficiency and effectiveness.

May 24, 1954

811

A proposed new claims program now pending
before the Sencate would provide benefits similar
to those paid to World War II victims under the
War Claims Act for losses and internments result-
ing from hostilities in Korea. The executive
branch of the Government has recommended ap-
proval of this program by the Congress. I now
suggest that this program be assigned by law to
the Foreign Claims Settlement Commission.

There should also be assigned to this new Com-
mission the settlement of such of the claims pro-
grams as may be authorized from among those
recommended by the War Claims Commission in
its report made pursuant to section 8 of the War
Claims Act. That report, posing many complex
policy, legal, and administrative problems, is now
being reviewed by executive agencies; and recom-
mendations will soon be sent to the Congress.

By peace treaties and an international agree-
ment, the United States has acquired the right to
utilize certain external assets and settlement funds
of several countries. A total of about $39,000,000
is available to indemnify claims of United States
nationals against the Governments of Roumania,
Hungary, Bulgaria and Italy, arising out of war
damage or confiscations in those countries. In ad-
dition, claims growing out of United States losses
from default on obligations and nationalization of
properties may be settled by awards from $9,000,-
000 realized from an agreement made in 1!)3.'5 with
the Soviet Union, known as the Litvinov Assign-
ment. Action by the Congress is necessary before
these various funds may be assigned for settlement,
and recommendations of the executive branch in
this connection will be transmitted at an early
date.

In addition to the reorganizations I have de-
scribed, the reorganization plan transfers to the
Foreign Claims Settlement Commission the func-
tions of the Commissioner provided for in the
Joint Resolution of August 4. 1939. These func-
tions involve the receipt and administration of
claims covered by the Litvinov Assignment. The
office of Commissioner, for which fimds have never
been appropriated and which has never been filled,
is abolished.

The reorganization plan does not transfer tlie
War Claims Fund or the Yugoslav Claims Fund
from the Department of the Treasurv, or divest
the Secretary of tlie Treasury of any functions
under tlie War Claims Act of 1948, as amended, or
under the International Claims Settlement Act of
1949, as amended. It does not limit tlie responsi-
bility of tlie Secretary of State with respect to the
conduct of foreign affairs. The reorganizations
contained in the reorganization plan will not prej-
udice any interest or potential interest of any
claimant.

After investigation, I have found and hereby
declare that each reorganization included in the
accompanying reorganization plan is necessary to
accomplish one or more of the purposes set forth

in section 2 (a) of the Reorganization Act of 1949,
as amended. I have also found and hereby declare
that it is necessary to include in the accompanying
reorganization plan, by reason of reorganizations
made thereby, provisions for the appointment and
compensation of officers specified in section 1 of the
plan. The rate of compensation fixed for each of
these officers is that which I have found to prevail
in respect of comparable officers in the executive
branch of the Government.

The statutory citation for certain functions of
the Secretary of State with respect to the Inter-
national Claims Commission which are abolished
by the reorganization plan, is the third and fourth
sentences of section 3 (c) of the International
Claims Settlement Act of 1949, 64 Stat. 13, as
amended.

It is at this time impracticable to specify the
reductions of expenditures which it is probable
will be brought about by the taking effect of the
reorganizations contained in the plan.

Reorganization Plan No. 1 of 1954 provides a
single agency for the orderly completion of pres-
ent claims programs. In addition, it provides
an effective organization for the settlement of
future authorized claims programs by utilizing
the experience gained by present claims agencies.
It provides unified administrative direction of the
functions concerned, and it simplifies the organ-
izational structure of the executive branch. I
urge that the Congress allow the reorganization
plan to become, effective.

DwiGHT D. Eisenhower
The WiirrE House,

April 29, 195Jf.

Text of Reorganization Pian No. 1 of 1954

Prepared by the President nnd transmitted to the Senate
and the House of Representatives in Congress as-
sembled, April 29, 1954, pursuant to the provisions of
the Reorganization Act of 1949, approved June 20, 1949,
as amended.

FOREIGN CLAIMS SETTLEMENT COMMISSION OF
THE UNITED STATES

Section 1. Egtahlishmcnt of Commission. — There is
hereby established the Foreign Claims Settlement Com-
mission of the United States, hereinafter referred to as
the Commission. Tlie Commission shall be composed of
three members, who shall each be appointed by the Pres-
ident by and with the advice and consent of the Senate,
hold office during the pleasure of the President, and
receive compensation at the rate of §1,^,000 per annum.
The President .shall from time to time designate one of
the members of the Commission as the Chairman of the
Commission, hereinafter referred to as the Chairman.
Two members of the Commission shall constitute a
quorum for the transaction of the business of the
Commission.

Sec. 2. Transfer of functions. — (a) All functions of the
War Claims Commission and of the members, otficers,
and employees thereof are hereby transferred to the
Foreign Claims Settlement Commission of the United
States.

(b) All functions of the International Claims Commis-
sion of the United States (hereinafter referred to as the

812

Department of State Bulletin

International Claims Commission) and of the members,
officers, and employees thereof are hereby transferred
to the Foreign Claims Settlement Commission of the
United States.

(c) The functions of the Secretary of State and of the
Department of State with respect to the International
Claims Commission and its affairs, exclusive of the func-
tions of the said Secretary and Department under sec-
tions 3 (c), 4 (b), and 5, and the first sentence of section
8 (d), of the International Claims Settlement Act of
1949, 64 Stat. 12, as amended, are hereby transferred to
the Commission.

(d) The functions of the Commissioner provided for
in the Joint Resolution approved August 4, 1939, ch. 421,
53 Stat. 1199, together with the functions of the Secretary
of State under section 2 thereof, are hereby transferred
to the Commission.

Sec. 3. Certain fiinctions of Chairman. — There are
hereby vested in the Chairman all functions of the Com-
mission with respect to the internal management of the
affairs of the Commission, including but not limited to
functions with respect to: (a) the appointment of per-
sonnel employed under the Commission, (b) tlie direction
of employees of the Commission and the supervision of
their official activities, (c) the distribution of business
among employees and organizational units under the Com-
mission, (d) the preparation of budget estimates, and
(e) the use and expenditure of funds of the Commission
available for expenses of administration.

Sec. 4. Abolitions. — (a) The War Claims Commission,
provided for in the War Claims Act of 1948, 62 Stat. 1240,
as amended, and the International Claims Commission,
provided for in the International Claims Settlement Act
of 1949, as amended, including the offices of the members
of each of the said commissions, and the office of Com-
missioner provided for In the aforesaid Joint Resolution
of August 4, 1939, are hereby abolished.

(b) The functions of the Secretary of State under the
third and fourth sentences of section 3 (c) of the Inter-
national Claims Settlement Act of 1949, as amended, are
hereby abolished.

Sec. 5. Authorization to delegate. — The Commission is
hereby authorized to delegate any of its functions to one
or more persons designated by the Commission from
among the members of the Commission and the officers
and employees serving under the Commission.

Sec. 6. Transitional provisions. — (a) Any person who
is a member or acting member of the War Claims Com-
mission or of the International Claims Commission im-
mediately prior to the taking effect of the provisions of
this reorganization plan may be designated by the Presi-
dent as an acting member of the Foreign Claims Settle-
ment Commission of the United States in respect of an
office of member the initial appointment to which has not
then been made under section 1 of this reorganization
plan. Each such acting member of the said Foreign
Claims Settlement Commission shall perform the duties
and receive the compensation of member. Unless sooner
terminated, the tenure of any acting member designated
hereunder shall terminate when the office of member con-
cerned is filled in pursuance of section 1 hereof, or 120
days after the effective date of this reorganization plan,
whichever is earlier.

(b) The Chairman shall make such provisions as may
be necessary with respect to winding up any affairs of
the agencies abolished by the provisions of this reorganiza-
tion plan not otherwise provided for herein.

(c) So much of the personnel, property, records, and
unexpended balances of appropriations, allocations, and
other funds employed, held, used, available, or to be
made available, in connection with the functions trans-
ferred by section 2 of this reorganization plan as the
Director of the Bureau of the Budget shall determine
shall be transferred to the Commission at such time or
times as the said Director shall direct.

(d) Such further measures and dispositions as the Di-
rector of the Bureau of the Budget shall deem to be

necessary In order to effectuate the transfers provided
for in subsection (c) of this section shall be carried out
in such manner as he shall direct and by such agencies as
he shall designate.

Sec. 7. Effective date. — The provisions of this reorgan-
ization plan shall take effect on the date determined under
section 6 (a) of the Reorganization Act of 1949, as
amended, or the first day of July, 1954, whichever is later.

TRANSMITTAL OF
REORGANIZATION PLAN NO.

22

I transmit herewith Reorganization Plan No. 2
of 1954, pre^Dared in accordance with the Re-
organization Act of 1949, as amended. The re-
organization plan assigns to appropriate agencies
the liquidation of certain affairs of the Recon-
sti'uction Finance Corporation.

First, the reorganization plan transfers to the
Export-Import Bank of Washington loans made
to foreign financial institutions and to foreign
governments, including a loan to the Republic of
the Philippines; all foreign bonds and securities
accjuired in the liquidation of Corporation lending
programs ; and functions with respect to the liqui-
dation of those assets. The Bank is this Govern-
ment's principal instrument for the administration
of similar matters and can readily integrate the
liquidation of the transferred assets with its other
activities in the field of foreign finance.

Second, the reorganization plan transfers to the
Small Business Administration loans made by
the Reconstruction Finance Corporation to vic-
tims of floods or other catastrophes, together with
the function of liquidating those loans. The
Small Business Administration is responsible for
a similar loan program. Thus, by this transfer,
related activities are concentrated in a single
agency for effective administration.

Third, the reorganization plan transfers to the
Federal National Mortgage Association, in the
Housing and Home Finance Agency, real estate
mortgages made or acquired under the authority
of the RFC Mortgage Company and the Defense
Homes Corporation, and the function of liquidat-
ing these assets. The Association is responsible
under its basic authority for the servicing, liquida-
tion, and sale of the bulk of residential real estate
mortgages held by the Government of the United
States. Through its field offices, the Association
maintains continuous relationships with lending
and investing institutions specializing in home
financing. It is, therefore, the Federal agency
best situated to liquidate the assets of a similar
type transferred to it by the reorganization plan.

Under existing authority, the completion of the
liquidation of the assets and the winding up of
the affairs of the Reconstruction Finance Corpo-

' H. Doc. 382, 83d Cong., 2d sess.

May 24, 1954

813

ration will be carried out under the direction of
the Secretary of the Treasury after the succession
of the Corporation expires on June 30, 1954. The
reorganization plan modifies that arrangement by
placing responsibility for the completion of each
of the activities described above under the juris-
diction of an agency responsible for a similar con-
tinuing program. Thus, the reorganization plan
facilitates the orderly and expeditious liquida-
tion of the affairs of the Corporation.

It is not, however, practicable at this time to
specify the reductions of expenditiires which it is
probable will be brought about by the taking effect
of the reorganizations contained in the plan.

After investigation, I have found and hereby
declare that each reorganization included in Re-
organization Plan No. 2 of 1954 is necessary to
accomplish one or more of the purposes set forth
in section 2 (a) of the Reorganization Act of 1949,
as amended.

I urge that the Congress allow the reorganiza-
tion plan to become effective.

DwiGHT D. Eisenhower
The White House,

April £9, 1954.

Text of Reorganization Plan No. 2 of 1954

Prepared by the President and transmitted to the Senate
and the House of Representatives in Congress assem-
bled, April 29, 19.54, pursuant to the provisions of the
Reorganisation Act of 1949, approved June 20, 1949, as
amended.

LIQUIDATION OF CERTAIN AFFAIRS OF THE
RECONSTRUCTION FINANCE CORPORATION

Section 1. Transfer of functions. — The functions of the
Reconstruction Finance Corporation (liereinafter referred
to as the Corporation) with respect to the following-
described matters, together with the functions of the
Secretary of the Treasury under section 10 of the Recon-
struction Finance Corporation Act, as amended, and under
the Reconstruction Finance Corporation Liquidation Act,
with respect to the said matters, are hereby transferred
as follows :

(a) There are transferred to the Export-Import Bank
of Washington the said functions relating to:

(1) Tlie loan made by the Corporation to the Republic
of the Philippines under section 3 of the Joint
Resolution of August 7, 1946, ch. Sll, 60 Stat. 902.

(2) The loans made by the Corporation to the Govern-
ment of Ecuador and the Newfoundland Railway
of St. Johns, Newfoundland.

(3) The capital stock of the Banco de P.orracha (now
known as the Amazon Credit Bank, Belem, Brazil).

(4) All foreign bonds and securities acquired by the
Corporation in the liquidation of its lending pro-
grams.

(b) There are transferred to the Small Business Ad-
ministration the said functions relating to loans made by
the Corporation to victims of floods or other catastrophes.

(c) There are transferred to the Federal National
Mortgage Association the said functions relating to mort-
gages held by the Corporation which were made or ac-
quired under the authority of The RFC Mortgage Com-
pany or the Defense Homes Corporation.

Section 2. Transfer of incidental functions. — There are
hereby transferred to each transferee agency so much of
the functions of the Corporation, and so much of the
functions of the Secretary of the Treasury under section
10 of the Reconstruction Finance Corporation Act, as
amended, and under the Reconstruction Finance Corpora-
tion Liquidation Act, as is incidental to, or necessary for,
the performance by the transferee agency of the functions
specified in section 1 (a), (b), or (c) hereof, as the case
may be, including, in respect of the functions specified in
sections 1 (a) (1), 1 (b), and 1 (c) hereof, the authority
to issue notes or other obligations to the Secretary of the
Treasury, which may be purchased by the Secretary,
under section 7 of the Reconstruction Finance Corpora-
tion Act, as amended, and the duty of making payments
on such notes or obligations issued by or transferred to
the transferee agency hereunder.

Sec. 3. Transfer of assets; miscellaneous transfers. —

(a) The loans, bonds, securities, mortgages, and capital
stock referred to in section 1 of this reorganization plan,
together with accrued interest thereon, property acquired
in connection therewith, and contracts and other instru-
ments pertaining thereto, are hereby transferred from
the Corporation to the respective transferee agencies.

(b) In addition to the transfers made by section 3 (a),
above, there shall be transferred to each transferee
agency so much as the Director of the Bureau of the
Budget shall determine to be appropriate by reason of
transfers made by sections 1, 2. and 3 (a) of this reor-
ganization plan of the property, personnel, records,
liabilities anil commitments of the Corporation and of the
authorizations, allocations, and funds available or to
be made available to the Corporation or the Treasury
Department.

(c) Such further measures and dispositions as the
Director of the Bureau of the Budget shall determine
to be necessary in order to effectuate the transfers pro-
vided for in sections 3 (a) and 3 (b), above, shall be
carried out in such manner and by such agencies as the
Director shall direct.

Sec. 4. Definition. — .\s used in this reorganization plan,
the term transferee agencies means the Export-Inqiort
Bank of Washington, the Small Business Administration,
and the Federal National Mortgage Association.

Sec. '>. Effective date. — The provisions of this reor-
ganization plan shall take effect at the time determined
under the provisions of .section 6 (a) of the Reorganiza-
tion Act of 1949, as amended, or at the close of June 30,
19.54, whichever is later, and shall be effective notwith-
standing any heretofore enacted provisions of law
transferring the duty of completing the liquidation of the
assets and the winding up of the affairs of the
Corporation.

THE DEPARTMENT

Designation

Evron M. Kirkpatrick as Deputy Director for Psycho-
logical Intelligence. Office of Intelligence Research, effec-
tive May 7. Mr. Kirkpatrick will be responsible for the
Department's ps.vchological intelligence support of, as
well as liaison with, the psychological warfare and inter-
national information programs throughout the Govern-
ment. He will continue to be responsible for the Depart-
ment's External Research program.

814

Department of Stale Bulletin

May 24, 1954

Index

Vol. XXX, No. 778

Page
American Principles

Bipartlsiin Foreign Policy (Dulles) 801

The Challenge to Freedom (Dulles) 779

Progress Toward World Brotherhood (Murphy) . . . 785

D.S. Policy in Southeast Asia (Dulles) 781

Canada. St. Lawrence Seaway Bill Signed Into Law

(Eisenhower, Wiley, Ferguson, Dondero) 796

Congress, The

Current Legislation on Foreign Policy : 83d Cong., 1st

and 2d Sess 810

Establishment of Foreign Claims Settlement Commission,
Li(|uidation of Reconstruction Finance Corporation
(Eisenhower) 811

Economic Affairs

The North Atlantic Ocean Stations Agreement (Lister) . 792

St. Lawrence Seaway Bill Signed Into Law (Eisenhower,

Wiley, Ferguson, Dondero) 796

Trade with the Philippines 802

World Trade Week, 1954 (Eisenhower) 801

Ethiopia. Visit of Halle Selassie 787

France. Geneva Conference Begins Discussions on Indo-
china (Smith) 783

Health, Education, and Welfare

Forced Labor Behind the Iron Curtain (Hotchkls) . . . 804

Visit of Japanese Expert on Atomic Disease 791

Honduras. General Strike in Honduras 801

India. Sentences by International Military Tribunal Far

East 802

Indochina. Geneva Conference Begins Discussions on Indo-
china (Smith) 783

International Organirations and Meetings

Geneva Conference Begins Discussions on Indochina

(Smith) 783

The Role of the International Red Cross in War and

Peace (Smith) 787

Liberia. Liberian President To Visit U.S 795

Military Affairs. Reports of U.S. War Prisoners Held in

Soviet Custody (texts of notes) 785

Near and Middle East. The Near East and the West

(Johnston) 788

Palestine. The Near East and the West (Johnston) . . . 788
Paraguay. Resumption of Relations With Paraguay . . . 801

Philippines, The. Trade With the Philippines 802

Presidential Documents

Establishment of Foreign Claims Settlement Commission,
Liquidation of Reconstruction Finance Corporation

x'Messages to Congress) 811

St. Lawrence Seaway Bill Signed Into Law 796

World Trade Week, 1954 801

Refugees and Displaced Persons. The Refugee Relief Pro-
gram : A Challenge to Voluntary Social Agencies
(Auerbach) 797

State, Department of. Designation (Klrkpatrlck) . . . 814

Treaty Information

Consular Convention With Ireland 802

Fan

Current Actions 803

Sentences by International Military Tribunal Far East . . 802
United Nations. Forced Labor Behind the Iron Curtain

(Hotchkls) 804

U.S.S.R.

Forced Labor Behind the Iron Curtain (Hotchkls) . . . 804

Reports of U.S. War Prisoners Held in Soviet Custody

(texts of notes) 785

Name Index

Auerbach, Frank L 797

Dondero, George A 796

Dulles, Secretary 779, 781, 801

Eisenhower, President 796, 801, 811

Ferguson, Homer 796

Hotchkis, Preston 804

Johnston. Eric 788

Klrkpatrick, Evron M 814

Lister, Ernest A 792

Murphy, Robert 785

Selassie, Haile 787

Smith, Walter B 783, 787

Tubman, William V. S 795

Tsuzuki. Dr. Masao 791

Wiley, Alexander 796

Check List of Department of State
Press Releases: May 10-16

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

Press releases issued prior to May 10 which
appear in this issue of the Bulletin are Nos. 230 of
May 5 and 235 of May 6.

Subject

Auerbach : Refugee Relief Act
Dulles: News Conference statement
Dulles : News Conference statement
Dulles : News Conference statement
Dulles : News Conference statement
Dulles : News Conference statement
Protest from India
Key : U.S. economic policies & U.N.
Merchant : Soviet power system
Notes on U.S. prisoners
Consular convention with Ireland
Dreier : Security in the Americas
U.S.-Paraguayan relations
Philippine Trade Act changes
Japanese expert on atomic disease
Dulles : Williamsburg address
Visas to Dutch immigrants
Haile Selassie visit
Allen : Relations with India

tHeld for a later issue of the Bulletin.

No.

Date

239

5/10

241

5/11

242

5/11

243

5/11

244

5/11

245

5/11

246

5/12

t247

5/12

t248

5/14

249

5/13

250

5/13

t251

5/14

252

5/14

253

5/14

254

5/14

255

5/14

256

5/14

257

5/15

t258

5/15

May 24, 1954

Foreign Relations of the United States . . .
the basic source of information on U.S. diplomatic history

1936, Volume II, Europe

the
Department

of
State

Papers printed in this volume of special political interest
are for the most part those dealing with Nazi control in Ger-
many and with the beginning and early stages of the Spanish
Civil War.

Reports on developments in Germany during 1936 repeat the
themes of earlier years : intensification of Nazi political control,
Nazification of education, resistance to attempted Nazi con-
trol of the churches, persecution of the Jews. Of special sig-
nificance is the report of Ambassador William E. Dodd on
September 18 as to means by which the Nazis perverted public
opinion to the extent that Hitler could count on the support
of the people in any venture he might undertake.

The correspondence in this volume regarding the Spanish
Civil War is divided into two sections, one on the international
political aspects of the war and the other on the protection
of the lives and property of Americans and other nationals.
The publicly announced U.S. policy of strict neutrality was
reiterated repeatedly as the Civil War continued.

Copies of this volume may be purchased from the Superin-
tendent of Documents, Government Printing Office, Washing-
ton 25, D. C, for $4.25 each.

Ureter f OTm ^^M Please send me copies of Foreign Relations of the United

States, 1936, Volume II, Europe.
To: Supt. of Documents
Govt. Printing Office
Washington 25, D.C.

Name:

Street Address:

Enclosed and:

City, Zone, and State:

(cash, check, or
money order).

1

0-:>

^/i€/ ^efia/i^'tmem/f/ ^o£/ t/io/te

Vol. XXX, No. 779
May 31, 1954

VieNT Oj»

THE SOVIET POWER SYSTEM— THE CHALLENGE

TO OUR SECURITY • by Assistant Secretary Merchant . 819

ADVANCING U.S. ECONOMIC POLICIES THROUGH

THE UNITED NATIONS • by Assistant Secretary Key . 826

ORGANIZING SECURITY IN THE AMERICAS • by

Ambassador John C. Dreier "30

EAST-WEST TRADE TRENDS • Report to Congress on

the Battle Act • • • 843

For index see inside back cover

Eos^ton Public Library
Supermt-nn..nt of Documents

JUN15 1954

^ne z/^e/tcot^^meTil^ c^ C/tate

bulletin

Vol. XXX, No. 779 • Publication 5485
May 31, 1954

For sale by the Superintendent of Documents

U. S. Oovernmont Printing Office

Washington 25, D. C.

Pbick:

62 issues, domestic $7. SO, foreign $10. 2S

Single copy, 20 cents

The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).

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

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the work of the De-
partment of State and the Foreign
Service. The BULLETIN includes
selected press releases on foreign pol-
icy, issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
interruitional affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

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

The Soviet Power System— the Challenge to Our Security

hy Livingston T. Merchant

Assistant Secretary for European Affairs

What I want to talk to you about tonight are
some of the reasons why — after victory in World
War II — we have found it imperative to organize
for peace and security.

In essence, there is only one reason. It is for
the only reason that throughout history nations
have been forced to group themselves together and
organize themselves politically and militarily to
defend their security and maintain the peace. It
is because nations find themselves confronted with
a threat to their security. That threat today is
plain and we know exactly the direction fi-oni
which it comes. It comes from a small group of
power-hungry men who have established them-
selves in the Kremlin as the force directing the
expansionist drive of Soviet Communist imperial-
ism. It is the Soviet power system, as it has been
organized and directed by those men, that is the
challenge and the threat to their security. That
is the menace against which we have found it
necessary to organize ourselves with other free
nations during i\\& past decade.

Even in 1930, when Earlham College held its
first Institute of Foreign Affairs, the criminal
designs of Soviet communism against interna-
tional order were not new. The Communist con-
spiracy which sought by revolutionary methods
to overthrow the existing social order was active
in manv of tlie European countries long before
World War I. It was, indeed, World War I
which gave them their first great opportunity.
Despite the disruption of that war, they accom-
plished their revolutionary purposes in only one
country — Russia. In all the other countries,
political, economic, and social stability was al)le
to reassert itself and the Comnuniists failed. In
Russia they succeeded. But for a considerable
period thereafter the men who had succeeded by
force and fraud in seizing political power in
Russia were too j)reoccupied with their own bloody
internal struggles for position and authority to

' Address made before the Institute of ForeiKn Affairs
at Earlham College, Richmond, Ind., on May 14 (press

release 24S).

threaten the world outside. The world watched
this struggle for power within the Kremlin during
the twenties and thirties, with its sensational
[iiu-ges, its show trials, and mass liquidations, but
the spectacle tended to mask the deep drive and
purpose behind it.

The threat of the power system that the Soviet
leaders were then consolidating through this
bloody process did not become apparent until the
world was startled into awareness by the signing
of the Molotov-Ribbentrop pact of August 1939.
This compact between criminals gave Nazi Ger-
many the green light to war and it rewarded Soviet
acquiescence in Hitler's plans for conquest with a
broad extension of Russia's western frontier. In
the secret protocol to that Pact, which was never
published until 1948,- Nazi Germany and Soviet
Russia divided control of Eastern Europe between
themselves.

The obvious purpose of this arrangement, for
the Soviet politico-military strategists, was to
purchase a forward strategic position for them-
selves at the expense of their neighbors, Poland,
the Baltic States, and Rumania. We may legiti-
mately ask ourselves whether another Soviet
motive may not have been to push the Nazis into
an exhausting war with the democratic countries
of Western Europe so that when both sides were
sufficiently weakened, Soviet communism would
have a clear field for its expansionist aims. At
any rate, we do know tliat the Soviets faithfully
collaborated with the Nazis in seizing the booty
offer-ed by the terms of the Molotov-Ribbentrop
pact. The two partners divided up Poland be-
tween them. That was in 1939.

Next, in 1940, in stark violation of the non-
aggression treaties which the Soviet Union had
forced on the three Baltic States of Lithuania,
Latvia, and Estonia, Stalin sent in his tr-oops to
taUe military contr-ol as a ))reliininary to tire now
familiar pattern of fake plebiscites and forced
incorporation into the Soviet system.

'Nazi-Soviet Reintionx 1939-19',! ( Hcparlment of State
imlilication .TO2.S), p. 78.

May 37, 1954

819

A Record for Political Cynicism

In tlie lio;ht of what was to happen in that
summer of 1940, when the Kremlin took over these
three small countries by force, we can now see that
the international record for political cynicism was
reached in the speech Molotov made on October 31,
1939.

Speaking of the mutual assistance pacts with
the Baltic States, Molotov then said :

The special character of these mutual assistance pacts,
in no way implies any interference on the part of the
Soviet Union in the affairs of Esthonia, Latvia or Lithu-
ania. . . . On the contrary, all these pacts of mutual
assistance strictly stipulate the inviolability of the sover-
eignty of the signatory states and the principle of non-
interference in each other's affairs. . . . We stand for
the scrupulous and punctilious ol>servance of the pacts on
the basis of complete reciprocity, and we declare that all
the non.sensical talk about the Sovietization of the Baltic
countries is only to the interest of our common enemies
and of all anti-Soviet provocateurs.

That statement of Molotov's was not the first in
the lono; line of promises made and broken, of
agreements solemnly signed and systematically
violated, with which the Soviet Government has
blotted the pages of its diplomatic history — nor
was it to be the last, as we have learned by bitter
experience.

Along with the takeover of the Baltic States,
the Soviet power system expanded into the Ru-
manian territories of Bessarabia and Bukovina.
But even these did not satisfy Soviet ambitions.
From captured documents in the Nazi Foreign
Office, we know now that Stalin's price for joining
the Axis included not only the seizure of these
territories in Europe but also a free hand in Fin-
land, Bulgaria, and Eastern Turkey and the right
to expand through the Turkish Straits into the
Mediterranean and through Persia, into India. ^
These far-reaching ambitions finally so alarmed
Hitler that he decided they threatened his own
plans for conquest and that the threat must be
crushed. Wlien Hitler turned upon Stalin, Stalin
turned to the Western democracies for help — help
that was given in full measure but never as fully
acknowledged.

With the disintegration of the Nazi military
power and political control in central Europe un-
der the hammering of the Allied armies on the
West and the Soviet armies on the East, the Soviet
power system moved in behind its advancing
troops. The Red Army occupied Eastern Ger-
many and Austria, all oJE Poland, most of Czecho-
slovakia, all of Rumania, Hungary, and Bulgaria.
Military control of these areas was supplemented
by political control exercised through cadres of
trusted Communist agents both homegrown and
Moscow-trained. Communist military and polit-
ical agents and advisers dominated Yugoslavia
and Albania.

The rest of Europe was war-weary and ex-
hausted. This seemed indeed to the men in the

'Ibid., pp. 255-259.
820

Kremlin the ideal time to put into effect the true
Soviet aims, regardless of the desires of the peoples
concerned.

The Soviet pattern of consolidating its power
system in Europe during the postwar years is
familiar to all of us. In the areas occupied by
the Soviet armed forces trusted Communists were
placed in key posts in the new governments, oppo-
sition leaders were ruthlessly eliminated by im-
prisonment, death, or exile. In 4 short years the
regimes of all the countries of Eastern Europe
were Sovietized. The countries themselves were
given the .supremely ironic title of "People's De-
mocracies.'' They were neitlier democracies nor
did they belong to the people — they belonged to
their Soviet masters.

In Western Europe, on which the Communist
conspirators also had designs, things did not go so
easily. In the first place, the peoples of these
countries were forewarned by the fate of their
neighbors to the East. They had time and op-
portunity to move to protect themselves. More-
over, as Stalin once openly complained, the Soviet
Connnunist Fifth Column in Western Europe was
obliged to operate without the support and pro-
tection of Soviet armed forces.

Compelled, therefore, to content itself with a
mere half of the European Continent, Soviet com-
munism concentrated on intensifying and con-
solidating its control over the captured countries.
The i^lan was to reorient the entire life of this
area away from the West and in the direction of
Moscow. All these countries were to become
obedient suppliers of the Soviet economy and, par-
ticularly, of the Soviet war potential. In agri-
culture, the Soviet pattern of collectivized farming
was introduced in the face of stubborn opposition
by the peasants. The natural resoiu'ces of these
lands were systematically exploited for Soviet
benefit. Industries were ordered to gear their out-
put to Soviet production. Inevitably, as a result
of such measures the standards of living of the
populations of the captured countries steadily
dropped. At the same time the hated Communist
secret police system was fastened on each country,
and national armies became mere auxiliaries of
the Soviet armed forces.

As a result of this relentless process of Soviet-
ization, the Soviet Union has converted virtually
the whole of Eastern Europe from the Baltic to
the Aegean into what is to all intents and purposes
an advance military base. This base is the spear-
head of the Soviet power system in Europe.

The Facts of Soviet Power

In the rush of events, which tend to distract our
attention elsewhere, we are occasionally inclined
to forget or to push to the backs of our minds the
hard and unpleasant facts which make this Soviet
power system which I have described a constant
threat to the security of Europe and to our
security.

Department of State Bulletin

Let ine remind you of a few of these facts. For
they are facts — based on the best available in-
telligence open to us from all our free world
sources.

Although the numerical strength of the Soviet
ground forces has remained fairly stable since 1947
at about 175 divisions, fully mobilized, there has
been a constant and steady increase in fire power
and mechanization. Today, out of the total of
175 active divisions, no less than 65 are equipped
with tanks and motorized transport. Altogether,
the Soviet Union and the Eastern European cap-
tive states, including Eastern Germany, have over
6 million men under arms, of which approximately
41/2 million are in ground forces. Since 1947 the
armed strength of the captive countries has been
almost doubled on Soviet orders. These forces
now amount to about 80 divisions.

But even without these satellite auxiliaries, the
U.S.S.R. has at its hand a ready spearhead for
a rapid advance into "Western Europe. This spear-
head is composed of the 22 Soviet divisions perma-
nently stationed in Eastern Germany. The bulk
of these are armored divisions with nearly a com-
plete complement of tanks and self-propelled
giuis. And to backstop this spearhead there are
()0 more Soviet divisions stationed in the Eastern
European countries and the Western areas of the
Soviet Union itself.

The mobilization system for both the Soviet
Union and the Soviet-dominated area of Eastern
Europe is periodically tested for effectiveness.
We believe that within 30 days after the start of
mobilization the Soviet Union could muster 400
divisions ready for action.

Soviet air strength has been stabilized at about
20,000 aircraft. But the rapid increase in Soviet
air potential is reflected in their change-over to jet
aircraft. Three years ago only about 20 percent
of the Soviet fighter force was equipped with jet
type aircraft. By early 1954, almost all Soviet
fignters were jets. By this year, too, they have con-
verted well over two-thirds of their light bomber
force to jet aircraft. Jet models have been observed
in the heavy bomber class. Meanwhile Soviet
development of atomic weapons has gone forward.

This tremendous aggregation of military power
must always be kept in the forefront of our policy
tliinking and planning. These are the facts which
go furthest to explain developments in the post-
war history of Europe. Thus, the existence of
this monolithic Soviet power system in Eastern
Europe is the yardstick by which to measure the
true value of Soviet propaganda lines which their
diplomatic spokesmen and their propaganda ma-
chine have plugged so steadily. How much reliance
can we place in the professed peaceful objectives
of Soviet foreign policy when we see so mucli effort
devoted to building this vast military apparatus?
How sincere is the Soviet desire for East-West
trade when we know how strenuous have been
the Soviet efforts to orient the entire production

and commerce of the captive peoples in the direc-
tion of the Soviet Union? What is the value of
a Soviet proposal for an all-round reduction in
armaments by one-third when even after such a
reduction the military strength at the disposal of
the Kremlin would still be preponderant?

The plain fact is that this system of Soviet
power which has been forcibly fastened on the
states of Eastern Europe, and the division of
Europe which has been its inevitable result, is
today, as it has been for the past 8 years, the main
threat to the security of Europe and to ourselves.

At times this threat may appear to grow alarm-
ing so that it is on everyone's minds and lips; at
other times it may seem to recede and to be over-
shadowed by other international events and prob-
lems. But however this threat may appear to us
at any given moment, the Soviet power base which
constitutes this threat is always growing.

Now, you have been hearing from other speak-
ers and have been discussing in previous sessions
some of the measures that have been taken by the
Europeans and by ourselves to organize the free
world to meet and deter this threat. You have had
extensive discussions of the North Atlantic Treaty
Organization, that close-knit alliance of 14 Atlan-
tic nations which in itself, backed by our own
atomic capability, has been probably the greatest
single deterrent to Soviet armed aggression in
Europe over the past 4 years. You have also dis-
cussed Eui'opean efforts to move toward closer
unity, not only in the field of defense through the
creation of the European Defense Community,
but economically through the already-operating
Coal and Steel Community and the European
Political Community, which is eventually to be
the directing political organism in all fields of
unification.

All these efforts we have supported and encour-
aged, not only because they are steps toward in-
suring Europe's protection against the threat of
Soviet aggression, and thereby contributing to
our own security, but also because they are good
in themselves. For we believe that, even if by
some miracle the Soviet threat were to diminish
or disappear, unity in Europe is necessary to make
Europe viable economically and stable politically.
We must always remember that so long as Europe
remains divided against itself, whether by a
Soviet Iron Curtain or by historic political rival-
ries and traditional economic separatism, so long
will Europe be a temptingly weak target for ag-
gression and a potential souiTe of disturbance to
world peace.

It is at the heart of tliese efforts toward Euro-
pean integration to so alter the relationships be-
tween the European nations, particularly rela-
tions between France and Cicrmanj', as to make
impossible any revival of those ancient hostilities
and frictions which led to two world wars. As
Secretary Dulles has so often pointed out, neither
the Europeans nor ourselves can afford to see re-
built in Europe the kind of firetrap of nationalistic

Aloy 31, 7954

821

rivalries and jealousies which produced the con-
flagrations of 1914 and 1939.

There is another point which I would like to
emphasize. If these efforts toward greater unity
by and for Europeans bear fruit, as we all sin-
cerely hope they will in the not too distant futui'e,
they will provide a solid core of economically pros-
perous, politically stable, and militarily defen-
sible cooperating states to serve as a rallying point
and a powerful magnet to which in time other
European nations will be drawn.

I well remember how bitterly and repetitively
Mr. Molotov at the Berlin Conference attacked
the whole concept of the European Defense
Community.*

Soviet Fear of United Europe

As I listened to Mr. Molotov I could not help
feeling that his vehemence was not motivated by
any Soviet fear that the Edc might one day turn
into an instrument of aggi-ession against the Soviet
Union, which was his major theme. His real fear,
I thought — so real he never dared to put in into
words — was his fear of the disrupting effects on
the Soviet power system in Eastern Europe of a
prosperous, healthy, stable, free, and united West-
ern Europe.

I saw with my own eyes at Berlin the powerful
attraction that the prosperity, the political free-
dom, and the high standard of living in West
Berlin exercise upon East Berliners. Translate
the microcosm of West Berlin into the macrocosm
of Western Europe, and I think you will see what
it was that Mr. Molotov and his Kremlin col-
leagues really fear about the prospect of a free and
united Europe.

And this brings me to the major point I would
like to make to you tonight. I have talked a good
deal about the strength of the Soviet power sys-
tem— and the threat it represents to our security.
I have referred to the progress which we, in con-
cert with our European and Atlantic allies, have
made in organizing ourselves for security against
that threat. I have said nothing at all about
Soviet vulnerabilities and sources of weakness.
And to my mind, the Soviet Union's gi-eatest
source of weakness, its major vulnerability, lies
in precisely those formerly free and independent
peoples in Eastern Europe whom it has so ruth-
lessly made its captives and slaves to serve its im-
perial ambitions. We must never allow ourselves
to forget that we have allies not only on this side
of the Iron Curtain — we have allies behind it, too.

If we are to effectively reduce or eliminate the
Soviet threat to European security it is clear that
we must use all the resources of our diplomacy,
not only to protect the independence and promote
the unity of Western Europe but also to promote

■^Foreign Ministers Meeting: Berlin Discussions, Janu-
ary 25-February 18, 195 J, (Department of State publica-
tion 5399) , pp. 16, 134, 142, 155, 159, 215.

the freedom and welfare of the captive peoples of
Eastern Europe.

That, like so many things, is easier said than
done. But there are some things we can do, and
we are doing them. Let me give you a few ex-
amples of what we are doing.

We have in spite of considerable difficulties and
provocations maintained diplomatic relations with
Czechoslovakia, Hungary, Poland, and Rumania.
This fact does not indicate any degree of approval
of these regimes or the means whereby they were
established. Our principal reason for maintaining
diplomatic missions in these countries is that those
missions assist us in our efforts on behalf of these
unfortunate people. Through our officials there
we can keep some remaining ties with them in
their hour of suffering; all the evidence indicates
that our flag flying over the buildings we occupy
there is an important symbol of hope for the
population.

The maintenance of hope and the strengthening
of ties between the West and the captive peoples
are likewise vital objectives of our radio broad-
casts into tlie Iron Curtain areas.

In the United Nations, we have worked to expose
to the world the Soviet Communist violations of
human rights in Eastern Europe so as' to bring
the force of world opinion to bear on the situation.

In our diplomatic moves on behalf of the peo- ■
pies behind the Iron Curtain, we do not attempt to j
prescribe what shall be the way of life of these '
people once they regain their freedom and inde- |
pendence. To do so would be to substitute our
will for the Soviet command which has been im-
posed upon them. We must at all times be guided
by the principles laid down by President Eisen-
hower in his speech of April 16, 1953 :

. . . Any nation's riglit to a form of government and
an economic system of its own choosing is inalienable.

. . . Any nation's attempt to dictate to other nations
their form of government is indefensible.

For the future of this region, all we can legiti-
mately expect is that the form of government and
economic system to be established will correspond
to tlie freely expressed will of the people. Thus,
we feel that in such states of the future each indi-
vidual should enjoy the protection of due process
of law and the right to work, to live, and worship
in accordance with his own conscience and belief.
We further expect that each nation will live in
peace and harmony with its neighbors. Since no
nation's security and well-being can be lastingly
achieved in isolation, each nation should cooperate
fully with its neighbors in establishing full and
friendly exchange of ideas, persons, and goods
within an acceptable international framework.

I think we will all agree that these goals are
right and desirable. The question is: Wliat are
the chances for achieving them? Certainly we
cannot count on sudden, spectacular success. The
course we have charted requires patience, flexibil-

822

Department of Sfafe Bulletin

ity, and perseverance. But there are encouraging

signs.

New Trend in Captive Countries

In the 14 months that have passed since Stalin's
death, important things have liappened ii^ the
captive countries as well as in the Soviet Union.
The inevitable struggle for power has produced
reshufflings of party and government offices and
officeholdere. Beria is dead, and what thoughts
run through his followers' heads?

In the puppet regimes events followed the Mos-
cow pattern and serve as a further reminder of
the subservience of those regimes to the Kremlin.

More significant has been the announcement in
each of the captive countries of a "new economic
course." The terms and conditions of this new
course vai-y from country to country, but there
are certain features common to the whole of Soviet-
dominated Eastern Europe. Thus, each regime
has confessed to the world it has followed im-
practical, inefficient, and contraproductive eco-
nomic policies. These confessions of failure have
been invariably accompanied by protestations of
concern for the welfare of the people and by
promises of thoroughgoing reforms. It is worth
considering what has induced these doctrinaire
Communists to sliift their tactics so suddenly and
to alter, temporarily at least, long-cherished Com-
munist economic precepts — many of which had
been reexamined and approved by Stalin as re-
cently as October 1952. Clearly it was no new-
found concern for the misery of its subject peoples
that caused the Kremlin to change its economic
tune. The answer is to be found in the stubborn
and long-continued resistance of the people.

The world was dramatically reminded of the
vitality of this opposition spirit last June 17, when
in East Berlin and the Soviet Zone of Germany
unarmed workers rioted in defiance of the Com-
munist puppets who ruled them, backed by Soviet
troops and tanks. But there are other fonns of
resistance which are not so spectacular but which
nonetheless impose severe strains on the Soviet
control mechanisms. These are such things as cir-
culating uncensored news heard from Western
radio stations, absenteeism and tardiness on the
job, slowdowns in production, the diversion of
food and other products from the prescribed chan-
nels of controlled trade. As individual acts these
things may seem small, but M-hen practiced on a
nationwide scale they are enormously effective —
so effective that the Communists were compelled
to embark on their "new economic course" in order
to eliminate some of the causes of disaffection and
to remove some of the obstacles to increased pro-
duction. Surely there could be no clearer evi-
dence of popular resistance. Now, instead of re-
lying only on such devices as terror, party agita-
tion, "socialist emulation," "stakhanovite accom-

plishment," and the like, the Communist rulers
strive to lure their subjects into producing more
by holding out promises of a greater supply of
foodstuffs and consumer goods in the future.

If the Communists really are interested in im-
proving the standard of living of the subjugated
peoples, the normal channels of trade and com-
merce are open to them to purchase in the West
the foodstuffs and other consumer goods which
they now profess to want to make available to the
peoples.

Unfortunately for Communist calculations, the
people of these countries long ago learned to be
skeptical of Communist promises. It is precisely
in fostering this attitude that we can be of assist-
ance to these people. Certainly we would not
want to deny to them any improvement in their lot.

We sincerely hope the Communist leaders will
perform under their promises. You can be sure
that we will not let them forget these promises,
and if they prove to be a cynical effort to relieve
the pressures to which they now feel themselves
exposed, we will, in support of their victims, hold
them to account.

At the same time, we can point out the apparent
reasons why the Communists have made these
promises in the first place and why they may not be
able to, or do not intend to, implement them for
the benefit of the people rather than for the pur-
pose of augmenting Soviet power. We can lielp
the people pierce the veil of Communist trickery
and at the same tune show our sympathy and
understanding of the problems facing the ordinary
people of these countries. By seizing every oppor-
tunity to show our sympathy and understanding,
we can help to maintain against a relentless
tyranny their faith in their national traditions,
their spirit of resistance, and their determination
to be free men and free nations once more.

In all that we do the welfare of the peoples
themselves must continue to be the basis of our
policies and actions.

We must above all continue to give tangible
assurance to these people that we consider their
plight a persisting challenge to all of us. We must
make it clear that we regard the improvement of
their lot as a moral obligation resting on all
nations who still enjoy a free and sovereign exist-
ence. Never must they be allowed to feel that we
hold them guilty of the crimes committed by
masters they did not choose. We must prove to
them, by word and deed, that the bonds of kinship
which tie them to the history and culture of the
West can never be dissolved by arbitrary fiat.
When the hour of freedom will strike, nobody can
toll. We do not expect it to happen tonight or
tomorrow morning. Although everything that
we and they can do to accelerate the process of
their emancipation must and will be done, the road
which they will have to travel may yet be long
and arduous.

May 31, J954

823

What we must count on, then, is that neither
they nor we will be deterred nor deflected from
our common purpose. Our purposes are peaceful,
but we must not let our friends beyond the Iron
Curtain weaken in their conviction that all our
actions in their behalf are dictated by the sole
desire to hasten the advent of freedom for them
and, in the meantime, to do what is in our power
to ease their present burden.

Tliere is one final point. Our purpose in all our
diplomatic action is to advance the cause of free-
dom and peace. There is no quick and easy answer
to our problems. From time to time it is sug-
gested both at home and abroad that we Ameri-
cans do not have the fortitude or perseverance to
carr}' out the tasks we have set for ourselves and
that one day we will give up and decide to bargain
with the Soviet Union for spheres of influence,
reconciling ourselves to the captivity of the peoples
of Eastern Europe. I say flatly that this is not
true. Secretary of State Dulles made our posi-
tion amply clear in a recent statement to the Select
House Conunittee investigating the seizure and
forced incorporation of the Baltic countries into
the U.S.S.K. ^ He said :

The captive peoples should know that they are not
forgotten, that we are not reconciled to their fate, and,
above all, we are not prepared to seek illusory safety for
ourselves by a bargain with their masters which would
confirm their captivity.

This is our policy. It is not something that has
been shaped by expediency or considerations of
international power politics. It is simply a reflec-
tion of the fundamental principles of liberty,
decency, and freedom on which this nation is
founded.

Soviet Charges Against Austria

Press release 2CG dated May 20

Following is the text of an iiut motion from
Secretary Dulles sent on May 20 to the UjS. repre-
sentative on the Allied Council for Austria,
Charles W. Yost:

The attention of the world is concentrated pri-
marily on the Geneva conference and Indochina
at this time. Because of that, I wish to express
my strong feeling that recent events in Austria
should not go unnoticed. The preservation of the
authority of the freely elected Austrian Govern-
ment throughout Austria, in accordance with the
Allied Control Agi'eement, is, I believe, a matter
of serious concern to all of us who live under simi-
larly elected democratic governments.

As you have reported, the Soviet High Connnis-
sioner in Austria on May 17 peremptorily sum-
moned the Chancellor and Vice-Chancellor of Aus-
tria to his headquartei-s and there delivered a

° Bulletin of Dec. 14, 1953, p. 818.

824

lengthy and virulent condemnation of the Aus-
trian Government. This condemnation, which is
clearly without foundation, included accusations
of hostile and subversive actions against the Soviet
occupation. The accusations also included those
of failure to comply with the provisions of the
Allied Control Agreement and violation of the
decisions of the Allied Council. Moreover, the
Soviet High Commissioner intensified the allega-
tions, which the Soviet Foreign Minister made
officiallj' at the Berlin conference as an excuse for
refusing to grant Austria her long-promised inde-
pendence, of Austrian plans for remilitarization
and for an Anschluss with Germany. Perhaps
most revealing of all were the charges against Mr,
Helnier, the Austrian Minister of the Interior, and
tlie threat that should the Austrian (iovermnent
fail to take corrective action, then the Soviets
themselves will be forced to take appropriate
measures.

These efforts are clearly meant to intimidate the
government of a free peojjle. The Soviets had
already made plain at Berlin that they intend to
remain in Austria indefinitely. They are now
threatening to strengthen and expand their con-
trol in their zone of oi'cupation. I was gratified
to note that the formal charges of the representa-
tives of the Kremlin were denied by the Chancel-
lor and Vice-Chancellor in the best tradition of
the courageous Austrian post-war Government
coalition. If there have been Austrian expressions
of dissatisfaction over the nine-year occupation
of a liberated country, surely the Soviet Govern-
ment should find tliem neither sui'prising nor a
threat to its own securit_v.

The Soviet High Conunissioner gave the appear-
ance of speaking on behalf of the Allied Council.
I know of no foundation for the Soviet charges,
but in order to remove any possible Soviet mis-
understanding of the United States attitude to-
wards its latest actions, I, therefore, instruct you
to request at the next meeting of the Allied Coun-
cil consideration of the Soviet allegations and
threats. The Allied Council has not only powers
in Austria but responsibilities toward her govern-
ment and people.

Any threat of further limitation to Austrian in-
dependence is a matter of grave concern not only
to the Austrian Government but also to the other
three occupying powers. Indeed such a threat
could not but be a cause of concern to the entire
free world.

U.S. Rejection of Polish
Ship Seizure Charges

Press release 270 dated May 21

In a note of May 15 delivered to the American
Embassy in Warsaw the Polish Government re-
ferred to a report that the Polish merchant ship

Departmenf of State Bulletin

(Inttwald had been intercepted by naval forces
I if the Government of the Republic of China. As
in the case of the Polish tanker Prouca ^ wliich was
similarly intercepted in October 1953, the Polish
( Government sought to impose upon the U.S. Gov-
ernment responsibility for tlie action against the
(rnttwald. On May 20 this Government replied
to the Polish note through our Embassy in
AA'arsaw. Tlie substantive portion of our note is
as follows :

"The U.S. Government rejects as completely
without foundation the allegations made by the
Polisli Government. The United States Govern-
ment has had no connection whatever with this
incident.

"Furthermore, as has been clearly stated before,
and as the Polish Government must be well aware,
propaganda charges involving the United States
Government in the Praca case are also comi^letely
false."

East German Escapees
Increase in Number

A sharp rise — ui^ward of 40 percent — in the
number of East Germans who risked tlieir lives
to seek refuge in the West occurred during the first
month of tlie Soviet -established "free and sover-
eigii regime" in East Germany, the U.S. Informa-
tion Agency announced on May 17.

In a recent dispatch to overseas posts, based on
reports from Germany, the Agency said that more
than 17,600 escapees from the Soviet Zone safely
made their way to refugee camps in West Berlin
and West Germany during April, an increase of
5,000 over March. This seemingly belies Red
propaganda claims of the freedom, security, and
contentment that exist in the so-called new East
German "sovereign" state, the Information
Agency observed.

Escapees in the first 4 months of this year totaled
over 44,000, including 1,100 people's police and
77 former commissars, the dispatch continued.
Nearly I14 million residents of the Soviet Zone
have sought jDolitical asylum in West Germany
during the last 5 years, including 300,000 in 1953.

Nearly half of the recent refugees are under 25
years of age, the Agency noted. German reports
suggest that this may be due, in part, to stepped-
up people's police recruitment and the difficulty
of finding adequate jobs. Teachers, arriving in
growing numbers in West Germany from the
Soviet Zone, anticipate a much larger influx of
their colleagues, now that education in East Ger-
many is wholly governed by political considera-
tions.

In an effort to halt this exodus from the East,
the people's police are tightening border controls.
Reports indicate that during the first 3 months of
this year 17 jiersons were shot and more than 2,600
arrested while trying to cross the border.

Ever tightening border controls are being im-
posed along the German-Polish border to prevent
the escape of Poles into East Germany and thence
to West Berlin. The entire border, from the Baltic
Sea to the Sudeten Mountains, is sealed otf by an
almost continuous high barbed wire fence, with
powerful searchlights closely spaced. In certain
areas, special devices such as acoustic signals and
flares set off by hidden wires are used. Soviet
crews have recently replaced Poles in the manning
of Polish patrol boats along the Oder River
border.

Current Legislation on Foreign Policy:
83d Congress, 2d Session

To Facilitate Emergency Forelgu Ship Acquisition and
Operation. Hearing liefore the House Committee on
Merchant Marine and Fislieries on H. R. 6318, to Extend
Emergency Foreign Merchant Vessel Acquisition and
Operating Authority of Public Law 101, 77th Congress,
and for Other PuriJoses. February 4, 19.5-1, 4 pp.

Report of Activities of the National Advisory Council on
International Monetary and Financial Problems. Mes-
sage from the President Transmitting a Report of the
National Advisory Council on International Monetary
and Financial Problems Covering its Operations from
April 1 to September 30, 19.53, Pursuant to Section 4
(b) (.5) of the Bretton Woods Agreements Act. H. Doe.
3.38, March 1, 1954, IX, 58 pp.

Amendments to Communications Act (Requiring Radio
Equipment and Radio Operators on Board Ships).
Hearing before a Subcommittee of the Senate Conimil-
tee on Interstate and Foreign Commerce on S. 2453,
a Bill to Amend the Communications Act of 1934, as
Amended, with Respect to Implementing the Interna-
tional Convention for the Safety of Life at Sea Relating
to Radio Equipment and Radio Operators on Board
Ship. March 16, 1954, 47 pp.

Sale of Certain Vessels to Brazil. Hearing before the
House Committee on Merchant Marine and Fisheries on
H. R. 6317, a Bill to Authorize the Sale of Certain Ves-
sels to Brazil for Use in the Coastwise Trade of Brazil.
March 24, 1954, 25 pp.

To Authorize the Sale of Certain Vessels to Citizens of
the Republic of the Philippines. Hearings before the
House Committee on Merchant Marine and Fisheries on
S. .T. Res. 72, Joint Resolution to Authorize the Secretary
of Commerce to Sell Certain Vessels to Citizens of the
Republic of the Philippines; to Provide for the Re-
habilitation of the Interisland Commerce of the Philip-
pines, and for Other Purposes. March 30, April 1 and G.
1954, 67 pp.

Military Construction, 1954. Hearings before the Senate
Committee on Appropriations. March 24, 26, April 1, 2,
and 7, 1954, 165 pp.

Sale of Ships to Brazil. Hearing before a Subcommittee
of the Senate Committee on Interstate and Foreign
Commerce on S. 2370, a Bill to Authorize the Sale of
Certain Vessels to Brazil for Use in the Coastwise Trade
of Brazil. April 7, 1904, 24 pp.

'■ Bulletin of Nov. 9, 1953, p. 640.
May 37, 7954

(Continued on p. 842)

825

Advancing U.S. Economic Policies Through the United Nations

hy David McK. Key

Assistant Secretary for United Nations Affairs^

I would like to discuss with you tonight certain
international suspects of American economic
policy — particularly, liow our participation in the
United Nations helps us in our economic and
trade relations with other countries. This is a
fittinji place in which to do so because Miami is
one of tlie vital crossroads in our far-fluntr eco-
nomic relations uith otiier countries. For ex-
ample, our iHi<;e trade witii Latin America —
wiiicli in 1958 took first place over Canada — is
symbolized by (he pi'ojection of tlie Florida penin-
sula into the Caribbean as a bridge and channel
for commerce in the Western Hemisphere.

Let me sav at tlie outset tliat t • delejjates in
the United N^atioiis do not operate, a.s do tlie repre-
sentatives of the Soviet bloc, on the basis of a
rifrid "party line' unrelated to tlie public interest.
Our representatives attempt to reflect accurately
the interest and desii-es of the American people
and to concert them with those of friendly powere
whose support and cooperation are essential.

In this connection, our representatives in the
United Nations liave received real assistance in
l)romoting the interests of the American commu-
nity from the United States Cliamber of Com-
merce. The support of your national orjraniza-
tion for the broad objectives of tiie U.N. has been
clearly demonstrated. I was glad to note that at
its recent 42d annual meetinfr in Washington, the
Chamber of Commerce adopted resolutions which
stated tliat "the L'nited Nations fills an indis-
pensable function in today's world"; which sup-
portetl the designation of October 24 of each j^ear
as United Nations Day ; and which suiiported the
purposes of Ukesco, one of the specialized agen-
cies of the United Nations. These and previous
evidences of support were, I know, not given
lightly or merely as a gesture of good will. They
were the result of hard study and the jiractical
experience of the representatives of the Chamber
of Commerce.

' Address made l)efore the Miami Chamber of Commerce,
Miami, Fla., on May 13 (press release 247 dated Ma.v 12).

This support is most welcome to public officials
like myself who are responsible to the taxpayers
for their investment in the United Nations. It is
also evidence that the Chamber of Commerce, to-
gether with a number of otlier responsible private
American bodies, is prepared to make its influence
felt in the councils of the United Nations. Paren-
tiietically, let me pay personal tribute to Dr. Earl
Cruickshank, who tor many yeai-s lias been the
Chamber of Commerce observer at the United Na-
tions and who has followed keenly developments
there of interest to tlie Chamber. I can attest
to Dr. Cruickshank's thoroughness and initiative
because he has worked closely with our oflicials
both in New York and AVashington. He is a great
credit to the Chamber.

I think tliat it is significant that both the United
States Chamber and the International Junior
Chamber of Commerce were granted consultative
status with the Economic and Social Council
(commonly called Ecosoc) at its last session. This
means that from now on Cliamber representatives
mav appear and speak at Ecosoc sessions on mat-
ters of concern to the American business commu-
nity. The International Cliamber of Commerce
has enjoyed consultative status with the Council
for some j'ears, as have the National Association
of Manufacturers and the Inter-American Council
of Commerce and Production. Through tliese or-
ganizations, businessmen here and abroad can
make their views heard and tlieir influence felt in
all the economic activities of the United Nations.
They can also help us present to the world an accu-
rate picture of the American way of life.

This is especially important with respect to
Ecosoc, whicli is responsible for making recom-
mendations to the members of the United Nations
and for coordinating the activities of the special-
ized agencies. One of its most important func-
tions is to review each year the world economic
conditions and to seek majority agreement on
measures to remedy existing problems. In this
annual consideration of current developments in

826

Department of State Bulletin

world economic affairs, each of the 18 representa-
tives of Ecosoc has an opportunity to express the
views of his country and of his region, to expound
his approach to economic problems, and to offer
his solution for these problems. It is in this gen-
eral review of economic matters that the conflict-
ing philosophies of the free world and the Com-
munist world emerge most sharply. It is here that
the United States representatives have an oppor-
tunity to explain the American way of life and to
expose the false charges made against us by the
Soviet bloc spokesmen.

I want now to review one of the most important
highlights of the recent Ecosoc meeting at the
United Nations Headquarters in New York. My
purpose is to show how the United Nations serves
our interests in the economic field.

Stimulating Private Investment

Tliis session again took up what has become one
of tlie most controversial subjects in the United
Nations. This is the problem of the international
flow of private capital for the economic betterment
of underdeveloped countries. This involves the
question of how best to stimulate economic devel-
opment in the vast areas of the world that need
capital — through government loans, such as
granted by the United States Export-Import
Bank; through international public loans, such as
granted by the World Bank; through private for-
eign investment; or through development of local
sources of private capital. All of these methods
have proved usefid in the past. They are making
their contribution today. But the pressure for
governmental and intergovernmental loans and
grants-in-aid continues to mount in the United
Nations.

The United States in the Economic and Social
Council has been giving increasing emphasis to
the need for stimulating the flow of private invest-
ment into the underdeveloped countries. At the
recent session of the Council, our representative,
Mr. Preston Hotchkis, effectively presented the
American view that much needs to be done, and
can be done, to develop new sources of both foreign
and local private capital.- This view was ac-
cepted by the Council by an overwhelming vote
of 15 to 2. Only the Soviet Union and Czecho-
slovakia opposed.

I would like to read one key paragi-aph of this
resolution : ^

The Economic and Social Council . . .
Recommends continuing efforts by countries seeliing
to attract private foreign capital to :

Re-examine, wherever necessary, domestic policies, legis-
lation and administrative practices with a view to im-
proving the investment climate; avoid unduly burden-
some taxation ; avoid discrimination against foreign in-

' Bulletin of Jlay 10, 1954, p. 725.

= T1.N. doc. E/Resolution (XVII) 19, B.

vestments ; facilitate the import by investors of capital
goods, machinery and component materials needed for
new investment ; make adequate provision for the remis-
sion of earnings and repatriation of capital. . . .

The resolution also recommends other measures
which the underdeveloped countries might adopt
for attracting private foreign capital. It makes
a number of very useful recommendations to the
capital-exporting countries. Among other things,
the resolution recommends that the capital-export-
ing and capital-importing counti'ies negotiate
treaties on double taxation, as well as agreements,
if consistent with national laws, providing for the
insurability of certain nonbusiness risks. This
resolution is a forthright recognition by the
United Nations of the principles of private
investment.

I have given you an example of Ecosoc action
in the economic field — one which represents a
notable achievement for the American viewpoint.
We are also advancing our economic interests
through the siJecialized agencies of the United
Nations. I would now like to review for you a
few significant developments in this field.

Work of the Specialized Agencies

Article 55 of the charter calls upon member
states to take joint and separate action to promote
higher standards of living and conditions of eco-
nomic and social progress. Your Government has
taken seriously these charter obligations and has
given leadership to the specialized agencies estab-
lished under the United Nations to carry out this
work.

We undertook these commitments in the knowl-
edge that in this interdependent world in which
we live, om* general well-being is intimately bound
with the well-being of other coimtries. The con-
tinued existence of very low living standards in
large areas of the world is unhealthy. The exist-
ence of vast depressed areas is a heavy drag upon
the whole world economy. The American people,
who have experienced the benefits of a vigorous
and prosperous economy, have a real stake in seeing
that the commitments under the charter to take
joint and separate action in the economic field are
implemented. We have a real stake in the devel-
opment of vigorous and prosperous economies
abroad. We are not interested in exploiting any-
one. We are interested in the mutual advantages
which flow from an unfettered exchange of skills,
goods, and ideas with other people. This is neither
altruism nor imperialism — it is simply enlightened
self-interest.

We cannot relax our efforts to assist the under-
developed countries to help themselves and to
improve their economic conditions. It is one of
our best and our most effective answers to the Com-
munist drive for the minds and hearts of men. The
specialized agencies have already done some strik-
ing things with agricultural, technological, and

May 3J, 1954

827

I

professional skills to help solve the problems of
underdeveloped areas.
Let me be specific :

Tlirough a loan from the World Bank, El Salva-
dor is doubling its electrical power supply. This
means power for new industries, irrigation, light-
ing.

The International Civil Aviation Organization
has standardized safety regulations at interna-
tional airports and maintains a chain of weather
and rescue ships along the air lanes over the North
Atlantic.

In India the International Bank has made avail-
able about $7.5 millions to reclaim land which
will eventually produce 500,000 tons of wheat a
year. To buy it abroad would cost India $36 mil-
lion annually at current world prices.

Unesco is fighting illiteracy by training teachers
to teach people to read in the Arab States, Latin
America, Ceylon, and Liberia.

In 1953 over 8 million children were vaccinated
against tuberculosis, and almost 20 million pro-
tected against malaria through DDT spraying in
various country campaigns conducted by the
World Health Organization and the United Na-
tions Children's Fund. Over 1,500,000 were
treated for the tropical disease of yaws.

In Southeast Asia, through the Food and Agri-
culture Organization, farmers have been taught
to grow edible carp in rice i)addies, thus .supple-
menting existing food supplies with a new and
valuable pit)tein resource.

Last year, right here in Miami, Ihere was a meet-
ing under Fao auspices of naval architects repre-
senting over a dozen countries. These architects
worked out improved designs for fishing boats
which will increase the efficiency of fishing opera-
tions.

These are only a few random exainples of the
work of the specialized agencies. Thej- are not
giveaway projects. They are primarily designed
to help people help themselves. Because we think
that is a sound idea, we are major supporters of
the United Nations Expanded Technical Assist-
ance Program — a program financed out of volun-
tary contributions of member countries to promote
economic development. We have made it clear
that we are willing to join with other nations in
diverting to economic development a portion of
the funds which will be saved if we can put into
effect an agi'eement for reducing armaments.

Being a good neighbor in the modern world is
nothing more than sound common sense. The end
result of ^Vmerican know-how, American food,
American money, American equipment, wisely
spent in United Nations enterprises around the
world — when added to our own purely national
programs — is certainly all to the good in terms
of our national interest. It gives people some-
thing to fight for as well as something to fight

with. It builds markets and cuts down the need
for direct American aid.

The Soviet Record

Let me contrast for you now the record of the
Soviets in the economic work of the United Na-
tions. It is a record which bears careful study
in the light of recent Soviet moves.

In Dumbarton Oaks and in San Francisco, when
the charter was hanimered out, the Russians
showed little interest in the establishment of any
economic organ within the United Nations. This
negative attitude toward the work of the Eco-
nomic and Social Council and other constructive
activities designed to improve the economic state
of the world has been the consistent policy of the
Soviet Union.

The Soviets have in the past ignored, opposed,
or sought to frustrate the economic activities of
the United Nations. This did not stop the Soviet
delegates from talking in various United Nations
bodies concerned with economic matters. In fact,
they did more talking than any other dele";ation.
But they used these bodies as sounding boards
for propaganda to attack the way of life of the
free countries. They used these bodies to extol
the alleged virtues of the Soviet economy. Their
perversion and twisting of facts was matched only
by the pereistency of their propaganda. At the
same time, they even refused to turnish the United
Nations with the most elementary data about con-
ditions in the Soviet lands.

The Soviets never contributed one red ruble to
the Expanded Program of Technical Assistance
or to the United Nations Children's Fund. They
refused membership in the International Bank, the
International Monetary Fund, the United Nations
Food and Agriculture Organization, the Interna-
tional Labor Organization, and Uxesco. For a
short while they did belong to the World Health
Organization, but they withdrew early in 1949.

What was the reason for this noncooperation
and obstructionism? The answer is clear: Com-
munist propaganda flourishes on miseiy and want.
Communist leaders are bound to try to undermine
any efforts on the part of the free world to improve
standards of living, particularly in the underde-
veloped countries of Latin America, the Middle
East, and Asia. For anj' such improvement was
bound to weaken the appeal of Communist
demagogues.

It was against this backgi-ound of Soviet ob-
structionism and noncooperation that the chief
Russian delegate surprised the membere of the
Economic and Social Coiuicil last August by an-
nouncing a conditional offer of the U.S.S.R. to
contribute 4 million rubles, or $1 million, to the
Technical Assistance Program of the United Na-
tions. This offer was shortly followed b}' similar,
though very much smaller, offers from Poland and
Czechoslovakia. It was onlv after the United

I

828

Department of Stale Bulletin

Nations rightly refused to accept sucli offers with
strings attaclied that the Soviet bloc dropped the
conditions on the use of these funds.

On November 4, 1953, the U.S.S.R. commu-
nicated to the International Labor Organization
in Geneva its decision to join that Organization.
.Vgain there was a reservation — this time that they
would not accept the jurisdiction of the Interna-
tional Court of Justice. Because of that impor-
tant reservation, the Ilo found that it coidd not
accept Russian adherence. The U.S.S.R. then re-
vised its position on the Ilo and on April 26, 1954,
joined that Organization without reservations.
Almost at the same time, the U.S.S.R. notified
T'xESCO that it would accept the Unesco Consti-
tution without reservations and should, therefore,
l:i' considered a member of the Organization.

These apparent reversals of Soviet policy are
all the more significant since both Unesco and the
I Lo have been prime targets of Soviet attacks over
tlie years. They never missed an opportunity of
describing the International Labor Organization
as "an instrument of capitalist employers to en-
slave the workers of the world." As regards
I'nesco, Poland, Czechoslovakia, and Hungary,
which had belonged to that Organization, even
though they did not actively participate in its
work in recent years, resigned from membership
only a short while ago on the grounds that it was
an instrument of "American imperialism."

What accounts for the present change in the
Kremlin's attitude? We are familiar with the
pattern of sweetness and light which is turned oif
and on like a water tap by the Russians whenever
it suits them. "Wliether the change in the Soviet
approach toward the economic activities of the
United Nations is merely part and parcel of their
so-called "peace offensive," which in effect means
no real change in Soviet policy, will be determined
in the days ahead.

A Testimonial to U. N. Achievements

This change of tune by the Soviet and its satel-
lites after years of refusing to participate in the
economic activities of the United Nations is in a
sense a testimonial to the real accomplishments of
the United Nations in this field. The Communist
attempt to boycott the specialized agencies has
backfired. Soviet leaders undoubtedly are wor-
ried about the growing effectiveness of aid offered
to underdeveloped countries. The people of un-
derdeveloped areas have become disillusioned with
Communist propagandists and agitators who at-
tack United Nations and American assistance as
"colonial exploitation" but who never produce any
constructive contributions of their own. The ac-
complishments of the Ilo in encouraging the rais-
ing of labor standards, of Unesco in bringing
basic educational facilities to underdeveloped
areas and in fostering intellectual freedom, have
posed a real challenge to the Communist system.

The Soviets have also been worried by the lead-
ership the United States Government has given
to these programs. Soviet lack of cooperation was
not overlooked in the underdeveloped countries.
The Russians could not reconcile this lack of coop-
eration with professed concern for the welfare of
the underdeveloped countries. Moreover, the
Soviets were plainly upset by the United Nations
efforts, in close cooperation with the International
Labor Organization, to focus public opinion on
the denial of basic rights to workers in the
U.S.S.R. and the inhuman Soviet slave labor
camps.

It remains to be seen whether the Communist
system can adapt itself to the free world atmos-
phere in which these United Nations activities
function, or whether the Conununist objective will
be disruption through infiltration. We have here
another good testing ground of Soviet intentions.
Will they abide by the rules of the game? Will
they, like other contributors, be content to leave
to the proper boards and committees the imple-
mentation of the adopted policies of the specialized
agencies ? Will they be willing to act as members
of Ilo and Unesco on the same footing as other
members ?

We genuinely hope so. If the Soviets, for what-
ever motives, are prepared even temporarily to
take seriously the commitments of the charter and
behave in these organizations as real supporters,
their participation will be welcome.

But if they are joining these organizations in
order to sabotage them, if Soviet membersliip
results in the usual kind of Communist obstruc-
tionism and propaganda, this can only bring forth
a strong reaction from the free world. We will
watch carefully Soviet action and do everything
possible to prevent any interference with the con-
structive efforts of the United Nations. This
means first of all that we will be firm in resisting
any attempt on the part of the U.S.S.R to change
the rules under which the United Nations and the
specialized agencies are operating.

Any attempt on the part of the U.S.S.R. to
change the tripartite character of Ilo in which
workers, independent employers, and governments
work in close cooperation could not possibly be
accepted. We are not interested in nor will the
Soviets be permitted to get away with cheap ges-
tures. I can assure you that the United States
Government, in cooperation with other free gov-
ernments, will insist that the rules already estab-
lished in the Economic and Social Council and
the specialized agencies be observed.

In Unesco, we need not fear any conflict of ideas
between the free world and the Communist world,
for truth is stronger than falsehood. We need not
be apprehensive alxnit the continuing effectiveness
of the International Labor Organization in pro-
moting industrial peace and improved labor con-
ditions, for both the employers and the workers
represented in the Ilo are, with govermnents of

May 31, 7954

829

the free world, on the side of freedom. Soviet
participation in such organizations as Unesco
and the Ilo will serve to bring more fully into the
open the fundamental differences wliich separate
the world of the free and the world of the slave.
"We need not be afraid of such comparison. As

long as we do not weaken in our support of these
organizations and their constructive efforts in
fighting ignorance, in improving living conditions,
and promoting greater freedom, the future belongs
to the free world.

Organizing Security in tlie Americas

hy John G. Dreier

U.S. Representative on the Council of the Organization of American States^

To an increasing extent since the close of World
War II, the U.S. has, in addition to participating
in and supporting the United Nations, depended
upon the creation of regional security arrange-
ments for the strengthening of its own national
security. Of these regional arrangements, which
include the North Atlantic Treaty and the Secu-
rity Treaty between Australia, New Zealand, and
the United States, the oldest is that among the
American States.

Having its roots in the history of inter-Ameri-
can relations as far back as a century and a quar-
ter ago, the collective security system of the Amer-
ican Republics was already in virtually final form
when the United Nations was established. In
fact, the determination of the members of the
inter-American system to protect the ability of
their regional organization to maintain peace and
security was largely responsible for the inclusion
in the United Nations Charter of articles which
recognize the right of collective self-defense and
of provisions regarding regional arrangements for
peace and secin-ity.

The Inter-American Treaty of Reciprocal As-
sistance, commonly known as the Treaty of Rio de
Janeiro, which was signed in 1947, fixed the form
of the inter- American collective security arrange-
ment. This treaty, moreover, served as an impor-
tant precedent for the North Atlantic Treaty
which followed soon thereafter, as well as for
other regional security arrangements either con-
cluded or proposed by the U.S.

Thus is illustrated an important and interesting
feature of inter- American relations — the fact that
on more than one occasion the U.S. has developed

' Address made before the Institute of Foreign Affairs
at Earlham College, Richmond, Ind., on May 15 (press
release 251 dated May 14).

in its relations with the other American Republics
basic policies and ideas which subsequently have
been extended to the larger arena of world affairs.

There is one respect, however, in which the inter-
American collective security system differs im-
portantly from the others which have been
modeled upon it. All of these regional security
arrangements are defense agreements having as
their purpose the common defense of the member
states against attacks by other states not included
in those arrangements. The inter-American sys-
tem, however, now formalized in the Organization
of American States, has a second important pur- ,
pose, namely, the maintenance of peace and secu-
rity among the members of the system as well. The
Treaty of Rio de Janeiro is an important instru-
ment of continental defense. But it is also sig-
nificant for its applicability to an attack or threat
which any American State might make upon
anotlier.

Let us first take a brief look at how the
inter-American system of collective security was
developed.

The Monroe Doctrine

From the viewpoint of the U.S., the springboard
from which the move for the development of a
continental defense system derived its impetus was
the Monroe Doctrine. This basic foundation of
American foreign policy has come through a num-
ber of mutations and interpretations during the
125 years since it was first enunciated. It may be
well, therefore, to recall its true original character.

In 1823 the U.S., a young and relatively weak
republic, felt itself threatened by the reactionary
forces of the Holy Alliance. Most of the Latin
American States had at that time won their inde-

830

Depattmeni of State Bulletin

pendence. It appeared that the European powers
gi-Quped in the Holy Alliance contemplated help-
ing Spain to recover her former colonies, and some
even considered the possibility of establishing new
colonies on the American Continent. These ideas
had their inspiration in a desire not only to regain
the material benefits of empire, but also to check
the gi'owth of republican institutions in the West-
ern World. This ulterior political motive gave
added color to the apprehension of the U.S. at the
plans of the Holy Alliance.

President Monroe's message of December 2,
1823, expressed the special interest of the U.S.
in the affairs of this hemisphere as contrasted
with those of Europe. He declared that the U.S.
would consider it dangerous to our peace and
safety for the allied powers to attempt to extend
their "essentially different" political system to any
portion of tliis hemisphere. This country would,
moreover, view any attempt to subject the inde-
pendent Latin American States once more to
colonization as the manifestation of an unfriendly
disposition toward the United States.

The Monroe Doctrine was, of course, entirely a
unilateral declaration by the U.S. Its enunciation
involved us in no commitment to other countries.
It was essentially a warning to non-American pow-
ers that they would court danger from the U.S.
if they attempted either of the two acts which the
Doctrine declared to be against our interests. Dur-
ing the ensuing century the U.S. on some occasions
took vigorous action in support of the Monroe
Doctrine, and at other times virtually disregarded
it.

At approximately the same time there was
planted in Latin America the germ of a somewhat
different idea, namely, a plan of alliance and mu-
tual defense among the independent Latin Ameri-
can nations. This was an important feature of the
proposals made by Simon Bolivar to the Confer-
ence of Panama held in 1826. Bolivar envisaged a
federation of Latin American countries, with
which the U.S. would be associated in defensive
alliance. Rejected by the Latin American coun-
tries themselves, the idea remained a dream for
more than a century. It constituted, however, an
important precedent influencing the development
of the pan-American movement which has brought
forth the Treaty of Rio de Janeiro and the Charter
of the Organization of American States.

Wliile the ideas of Bolivar remained germinat-
ing in the soil of Latin American juridical dis-
cussion, the U.S. proceeded with the assumption
of its unilateral responsibility for the defense of
the continent. It assumed also a responsibility
for the maintenance of peace within the Americas
insofar as this latter purpose was necessary to the
achievement of the former. In the early part of
the 20th century the strong arm of the U.S. made
itself felt with increasing vigor in the Caribbean
and Central American areas.

The Theodore Roosevelt Corollary

President Theodore Roosevelt formulated the
so-called Roosevelt corollary to the Monroe Doc-
trine. The theory of his policy was that if the
U.S. wished to keep European nations out of
American affairs, it was necessary for the U.S. to
maintain sufficient order and stability in the Amer-
icas so that the European powers would have no
justification to intervene. In practice this meant
that the U.S. would intervene in order to prevent
intervention by othei-s.

We need not go into the history of U.S. inter-
vention in the Caribbean and Central American
countries and in Mexico for the purpose of enforc-
ing what we believed to be orderly government.
Suffice it to say that these measures, taken in full
i-ecognition of the fact that, under international
law, intervention to protect the lives and property
of our nationals was recognized as a justifiable
recourse when orderly systems of law had proved
inadequate, promoted in Latin America a violent
reaction. The Latin American Republics focused
their attention not upon the dangers of European
intervention, but upon violation of their national
sovereignty and territorial integrity by the United
States. The paramount issue, therefore, in the
development of an inter- American security sys-
tem, from the Latin American standpoint, grew to
be the development of guarantees against the inter-
vention of the United States in Latin American
affairs.

By the late 1920's the U.S., in recognition of
this demand from Latin America, and seeing the
advantages of a more cooperative relationsliip
with the Latin American countries, began to alter
its approach. The Roosevelt corollary to the
Monroe Doctrine was abandoned. Gradually, the
U.S. ceased its intervention in the atfairs of its
southern neighbors. By 1936 the nonintervention
policy was formally accepted by the U.S. in a
treaty ratified with the approval of the Senate.

So strong, however, was the sentiment in favor
of nonintervention among the Latin American
countries that its acceptance by the U.S. in treaty
form by no means terminated the constant in-
sistence of Latin American States upon this theme.
The fear of U.S. intervention, despite now some
20 years of faithful observance of the noninter-
vention doctrine, is still not fully laid. It was a
major feature of the debate at the Tenth Inter-
American Conference, held last March in Caracas,
over the newest development in the continental
security policy : namely, the resolution on commu-
nism. Of this we shall speak more full_y later on.

Concurrently with tlie development of the non-
intervention principle, however, another concept
was in process of formation that would place the
whole continental security in a new light. This
was the development of collective responsibility
for tlie maintenance of continental peace and
security.

May 3J, J954

831

The U.S. had given up its right to intervene in
the protection of its national interest at a time
when the world enjoyed an apparently peaceful
era. As the rise of Hitler developed fresh tensions
in the world, it became clear that renewed atten-
tion should be given to problems of hemisphere
defense. Would the United States, under these
conditions, revert to its policy of unilateral re-
sponsibility, and take into its own hands the pro-
tection of tlie hemisphere by whatever measures
it considered desirable ? Such a step would have
marked a reversal in the trend of U.S.-Latin
Amei'ican policy. It was more in keeping with
the attitude of mutual respect which underlay the
good-neighbor policy for the U.S. to seek to share
with the other i\jnerican Eepublics the respon-
sibility for making decisions on this matter of
sreneral interest.

Development of Consultative Procedure

The first step in the development of the collec-
tive-security system in the new world brought
forth the procedure of consultation. First dis-
cussed at the Inter-American Conference for the
Maintenance of Peace, held at the initiative of the
U.S. in Buenos Aires in 19.36, the consultative
procedure was developed at the Eighth Inter-
American Conference in Lima, Peru, 2 years later.
At that meeting it was agi-eed that the Ministers
of Foreign Affairs of the American Eepublics
would meet if the peace and security of the con-
tinent were threatened. Within a year, following
the outbreak of World War II, this procedure
was set in motion with the holding of the First
Meeting of Ministers of Foreign Affairs at
Panama.

The war crystallized thinking in regard to col-
lective responsibility for continental defense. At
the Second Meeting of Foreign Ministers, held in
Habana in 19-40, it was agreed that any attack by
a non-American State against an American State
would be considered as an attack on all. The
resolution incorporating this principle went on to
say that in the event of such an attack American
States would consult together in order to decide
upon the measures which should be taken. This
resolution was the basis on which, after the attack
on Pearl Harbor, the U.S. called upon the other
American Republics to participate in a wide vari-
ety of political, economic, and military activities
considered necessary for the defense of the
continent.

The cooperation of the American Republics
during World War II was of vital importance.
Its contributions, first, to the military defense of
the continent, and, even more, to the economic
mobilization of the hemisphere's resources, were
of tremendous significance to the successful out-
come of the war. Moreover, one of its most im-

portant results was the legacy it gave to the future
in the form of an even more complete and effective
system of collective security.

During the last year of the war, with victory
and the establishment of peace already in sight,
the Ainerican Republics met in Mexico City. Here,
looking forward to the creation of a world organi-
zation on the basis of the Dumbarton Oaks pro-
posals, the American Republics agreed upon the
main lines of their permanent regional security
system. In the Act of Chapultepec the principle
which had been adopted in Habana 5 years earlier
was broadened to include any kind of an attack
against an American State, from whatever source.
Any attack against an American State — either by
a non-American State or by one American nation
against another — would henceforth be considered
as an act of aggi'ession against all. This principle,
it was agreed, would be written into a treaty to
be drawn up at a subsequent conference.

Two years later the Inter-American Treaty of
Reciprocal Assistance was approved at the Con-
ference in Rio de Janeiro.

Without going into detailed analysis of this
security arrangement, let us note the following
points which stand out as of particular signifi-
cance :

1. An armed attack by any State against an
American State is to be considered as an armed
attack against all, and calls for immediate assist-
ance to the victim of the attack.

2. The parties to the treaty are obligated to con-
sult together in order to agree upon appropriate
measures in the event of (a) an armed attack as
mentioned above, or (b) in case the political in-
dependence or territorial integrity of any Ameri-
can State is threatened by any act of aggi'ession or
any other fact or situation threatening the peace
of the hemisphere.

.3. In such consultations the member states may
agree upon various sanctions, including breaking
of relations, economic sanctions, and the use of
armed force. Except for the use of armed force,
the decisions made regarding these sanctions are
binding upon all parties to the treaty if approved
by a majority of two-thirds.

4. The various provisions of the ti'eaty are so
drafted as to make them conform to the United
Nations Charter.

This then is the legal basis for the collective-
security system of the Organization of American
States. I should like to offer some observations
regarding the application of this collective-secu-
rity system in regard to three main problems, all
of which have some current pertinence. These
are first, the military defense of the continent;
second, the maintenance of peace among the Amer-
ican States; and third, the ])roblem of aggression
by means of subversive activities.

832

Deparfmenf of State Bulletin

Military Defense of Continent

First, in regard to militai-y defense of tlie con-
tinent, it is obvious that, under present world con-
ditions, Latin America occupies a diffei'ent posi-
tion in our defense system from that which it held
at the beginning of World War II. In 1940 we
were concerned over the possibility of attacks upon
the U.S. via the soutliern continent. Hemisphere
defense and national defense were concepts so
closely related as to be virtually indistinguishable.

Today the situation has been greatly changed
by the nature of modern warfare. If the U.S.
is to be attacked, the most probable course will be
via the northern part of the hemisphere rather
than the southei'n. Moreover, the nature of the
threat which the U.S. faces in the world today has
made it necessary for us to extend our strategic
defense lines far beyond the shores of this con-
tinent into Europe on the one hand and Asia on
the other. Thus Latin America can hardly be con-
sidered as one of the most likely combat areas.

Nevertheless the necessity for arrangements to
insure the military security of the Western Hemi-
sphere remains. This fact was recognized at the
Fourth Meeting of American Foreign Ministers,
held in Washington in 1951 shortly after the active
entrance of Conamunist China into the Korean
War. Considering the military problems of the
hemisphere, the Fourth Meeting of Foreign Min-
isters recommended that the American nations
reorient their military policies so as to contribute
to their best ability to the collective defense of the
continent. The Inter-American Defense Board,
an organization on which all the American Re-
publics are represented, was directed to carry for-
ward its military plans for continental defense.
On the basis of these plans the U.S. has entered
into bilateral military agi-eements with nine of the
other American Rejiublics. These agreements pro-
vided for certain military assistance from the
U.S. in developing armed forces that will be use-
ful in carrying out the plans for hemisphere de-
fense in accordance with the recommendations of
the Inter- American Defense Board.

The work of the Inter- American Defense Board,
and the policies pursued by the U.S. in military
cooperation with the other American Republics,
have thus established at least the beginnings of an
effective military defense program based upon the

Solitical and legal conmiitments of the Treaty of
io de Janeiro.

Maintenance of Peace Among American States

Turning now to the problem of maintaining
peace among the American Republics, we find
some special and noteworthy developments. The
Treaty of Rio de Janeiro deals essentially with
enforcement measures to prevent or repel armed
conflict. Its authority is backed up in the last
analysis by the possibility of using armed force.
The Latin American countries have, however,

traditionally disliked the prospect of using armed
force against any one of their number. The whole
emphasis in the development of inter- American
peaceful relations has been upon the proscription
of the use of force and insistence upon the settle-
ment of international disjjutes by legal and orderly
methods.

A great deal of effort has been expended during
the past century among the American Republics
in attempting to devise a practical system of agi'ee-
ments for the settlement of inter-American dis-
putes by such recognized methods as mediation,
conciliation, arbitration, and adjudication. Over
a period of years numerous treaties involving these
procedures have been drawn up, and elaoorate
systems for the appointment of commissions of
investigation, or panels of arbitrators, have been
devised. The most recent of these efforts was an
attempt made in Bogota in 1948 to consolidate
all methods of peaceful solution in one instrument
known as the Inter-American Treaty of Pacific
Settlement, or the Pact of Bogota.

Like most of its predecessors, the Pact of Bogota
suffered from an excess of perfectionism. Tech-
nically and legally, it has much to commend it.
But from the stanclpoint of political realism, its
drawbacks are indicated by the fact that now, 6
years after its signature, only 8 of the 21 American
States have ratified it. The possibility of revising
it was briefly considered at the recent Caracas con-
ference, and it is now undergoing further study
in the Council of the Organization of American
States in Washington.

Nevertheless the importance of the peaceful
solution of international disputes among the
American States should not be in any sense de-
preciated. The excellent record which the Inter-
American Peace Committee has made in helping
States resolve their controversies peacefully mei'its
attention and approval. Moreover, the very fact
that the Treaty of Rio de Janeiro makes it possible
to bring force to bear upon an aggressor nation
in the Americas may be considered to have
strengthened tlie likelihood of reaching peaceful
settlements.

This fact was illustrated in the two cases in
which the Treaty of Rio de Janeiro has been in-
voked to date. In 19-48-49 a dispute between Costa
Rica and Nicaragua, involving the crossing of the
border by armed men, brought swift action under
the Rio Treaty. Acting provisionally as Organ
of Consultation under the Kio Treaty, the Council
of the Oas dispatched an investigating committee
to ascertain the facts, and called upon both States
to desist from any acts that would aggravate the
situation. As a result of this prompt demonstra-
tion of effective interest, both governments com-
posed their difficulties and signeil a special agree-
ment pledging themselves to settle any future
controversy whicli might arise between them in
accordance with the above-mentioned Pact of
Boicota.

Aioy 37, 1954

300334 — 54 3

833

The following year a dispute arose between the
Governments of the Dominican Republic on the
one side and Haiti, Cuba, and Guatemala on the
other. Here again prompt action by the Council
of the Oas, under the Treaty of Rio de Janeiro,
resulted in measures by the various governments
to eliminate causes of serious grievances and re-
store a peaceful climate. In neither case was it
necessary to invoke the enforcement provisions of
the Treaty of Rio de Janeiro.

During the period since World War II, there
have been several instances of sharp controversies
between republics of this hemisphere, sometimes
involving momentary armed conflict. Yet all of
these controversies have been held within — or re-
stored to — the channels of orderly peaceful solu-
tion, and the vast majority of cases have been so
resolved. Tliis hap[)y contrast with events in
other parts of the world is, of course, due to a
number of factors. Not least among them, how-
ever, is the existence of the regional collective
security system which has been developed in the
Americas. This, in turn, has depended for its
success upon 100 yeai-s or more of effort on the
part of the American Republics to create an inter-
national system of morality which does not counte-
nance a resort to force, and places respect for law
high among the basic responsibilities of each State.

Aggression by Subversive Means

Finally, let us turn for a few moments to the
problem which may well be uppermost in the minds
of most people today when they consider the prob-
lem of collective security in the Americas. I refer
to the problem of subversive activities, the method
pursued by international communism in its striv-
ing for domination of independent states.

During World War II the American Republics
had their first large-scale experience with subver-
sive activities. German comnumities in many of
the Latin American countries activel}^ promoted
the Nazi cause, and encouraged a favorable atti-
tude toward national socialism. A widespread
propaganda machine supported these efforts which
were in large measui-e financed by the profits of
local German-owned businesses.

The problem of Nazi-inspired subversive activ-
ity, however, differed from the Communist activ-
ity of today in one very important respect. For
the most part it was carried out by aliens — that
is Germans — even though those aliens might be
residents of an American Republic and deeply
involved in the local business and social com-
munity. The Communist problem, on the other
hand, relates primarily to nationals of American
Republics who have liecome agents of the interna-
tional Communist movement. Attempts to deal
with the problem created by the activities of these
persons may, therefore, involve the relationships
between a government and its own citizens.

Thus proposals to deal with Communist activ-
ity have run up against the problem of noninter-
vention. Conmiunist agents display great ability
at infiltrating into all kinds of popular national
organizations and causes, making use of them for
their international ends. It is often difficult to
unmask the agents of the international Communist
movement and to distinguish them from genuine
national leaders of social and economic reform.

This difficulty was reflected in the debate at the
Caracas conference of the subject entitled "Inter-
vention of International Communism in the
American Republics." The U.S. maintained that
any successful intervention by the international
Communist movement would in effect subject an
American State to the political control of a non-
American force. Not only would this conflict with
the Monroe Doctrine ; it would come well within
the provisions of the Treaty of Rio de Janeiro
which calls for consultation in the event the po-
litical independence of an American State is af-
fected by any fact or situation that might endan-
ger the peace of America.

At the same time, the seizure of power in an
American State by the international Communist
movement would constitute the extension to this
hemisphere of an alien political system and thus
violate another major provision of the Monroe
Doctrine. ■ ^

At Caracas, the Government of Guatemala, not
without reason, felt itself particularly concerned
over this debate, even though the situation in that,
or any other country, was not a subject of dis-
cussion. Frequent statements by public and pri-
vate persons in the U.S. and elsewhere, listing
specific examples of important Communist in-
fluence in Guatemala, had gone unanswered except
by evasive generalities. The U.S. proposed at
Caracas that the Conference agree to apply the
consultative procedure of the Treaty of Rio de
Janeiro to any case in which an American State
should fall under the domination of the interna-
tional Communist movement. The tactic of
(iuatemala in opposition to this proposal was to
raise the old bogie of Yankee intervention.

Delegates of other countries placed the problem
in its correct context when they pointed out that
the application of the consultative procedure to
the proolem of Connnunist subversion was the best
insurance against intei'vention. The United
States at Caracas posed the problem of what to do
in the event an American State should be sub-
verted and dominated by the most powerful hostile
force ever to threaten the independence of the
New World. The proposal made by the U.S. was
again, as it had been during the 1930 s, to invite
the other American Republics to share, through
the consultative procedure, in the responsibility
for determining how this problem should be met.

Wliat is the alternative to such a proposal?
History has demonstrated that the normal course
has been for great powers to intervene by force in

834

Department of State Bulletin

smaller states in pursuit of their vital national
interests. Only in this hemisphere has a great
power formally forsworn intervention in favor of
the consultative process and the assumj^tion of
joint responsibility with its smaller neighbors for
the maintenance of continental peace and security.
The success of this inter- American policy requires,
of course, that both principles are made to
function.

We may state it to be an axiom of inter- Ameri-
can relations that nonintervention can only be a
reality so long as an adequate collective system of
security is available to all States.

The problem of how to cope effectively with
aggi'ession by subversion in the Americas is one
which has been foreseen since the Treaty of Rio
was adopted. We canaiot foresee at this date the
exact steps through which a system of collective
security can best be applied to such a problem.
An important step was made at Caracas when the
Conference declared that the domination of the
political institutions of an American State by the
international Communist movement would con-
stitute grounds for invoking the consultative pro-
cedure under the Eio Treaty.^ The Organization
of American States may thus squarely confront
tlie problem. We may be confident that the re-
gional security system of the Americas will dem-
onstrate its vitality and effectiveness by acting
swiftly and decisively to protect this hemisphere
in any case of aggression by subversion should the
need arise.

Arms Shipment to Guatemala
From Soviet-Controlled Area

Press release 260 dated May 17

The Department of State is in receipt of reliable
information to the effect that an important ship-
ment of arms has been effected from Soviet-con-
trolled territory to Guatemala.

On May 15, the ship AJfhelm, believed to be
under charter, arrived at Puerto Barrios, Guate-
mala, carrying a large shipment of armament con-
signed to the Guatemalan Government. This
armament is now being unloaded at Puerto Bar-
rios. We are advised that the armament was
shipped from the Communist-administered port,
of Stettin.

Because of the origin of these arms, the point of
their embarkation, their destination, and the (luan-
tity of arms involved, the Department of State
considers that this is a development of gravity.

' For text of declaration, see Bulletin of Apr. 26, 1954,
p. 638.

Tribute to Defenders of
Dien-Bien-Phu Acknowledged

White House press release dated May 13

The President on May 13 received the follow-
ing messages from Rene Coty, President of France,
and Bao Dai, Chief of State of Viet-Nam, ac-
knowledging his comm/wnications of May 8.^

Message From President Coty

The tribute of the President of the United States
to the defenders of Dien-Bien-Phu goes straight
to the heart of the French people. Our profound
gratitude, Mr. President !

The soldiers and veterans of France and the
French Union will be proud that the Chief who
led the Armies of Liberty to victory salutes in this
magnificent resistance the symbol of the inflexible
resolution of all men who, throughout the world,
are and wish to i-emain free. It is a well-deserved
honor for the soldiers of de Castries.

France, who, as you note, Mr. President, has
always risen above her i-everses, can now once
again surmount a trial so [)ainf ul and so glorious
with all her energy and all her courage in close
solidarity with the peoples whose destiny is joined
with her destiny.

Our heroes' sacrifice will make dearer and more
sacred to all the cause for which many have fallen
and all have fought beyond human strength.

Message From Bao Dai

I have received with deep emotion the noble
message of May 8 in which you have wished to
express, in name people United States and in your
name, admiration for valiant soldiers of
Vietnamese forces who have defended heroically
Dien-Bien-Phu, with their French Union com-
rades, for two months.

The Vietnamese people and I are profoundly
touched by these expressions. We express to you
our heartfelt gratitude and we ask you to convey
it to the great American people who have already
given us so many proofs of friendship.

The fall of Dien-Bien-Phu is in effect a painful
occurrence which affects us very much and affects
the peoples of the French Union and the free
world.

In spite of their heroism inscribed henceforth
in history, the defenders of the fortress were
swamped by the forces of those who, having sub-
jugated to their designs and fanaticized by their
untrue propaganda a certain number of my fellow-
countrymen, aspire to extend Communist do-
minion over my country as over all the free
nations.

' Bulletin of May 17, 1954, p. 745.

May 31, 7954

835

I think as you that their sacrifices have not
been in vain.

For our struggle, which "will be able to surmount
this reverse, we can draw a great comfort in the
determination of the American people and in your
personal will of aiding the free forces who resist
Communist imperialism.

Please accept, Mr. President, the expression of
my personal feeling of sincere affection.

Governors To Observe
Korean Reconstruction

The departure on ilay 21 of Governors Dan
Thornton of Colorado, Johnston Murray of Okla-
homa, John S. Fine of Pennsylvania, and Allen
Shivers of Texas on a 16-day trip to observe Amer-
ican and United Nations relief and rehabilitation
programs in Korea was announced by the Foreign
Operations Administration on JNIay 19. The coor-
dinated progi'ams are being carried out with a
U.S. contribution of $320 million during the cur-
rent fiscal year.

The trip is being made in response to an invi-
tation from President Eisenhower extended last
February to members of the executive committee
of the Governors' Conference. The President said
that the personal evaluation by a delegation of
State governors of the progress being made in im-
proving Korea's military position and helping to
rebuild its war-toni economy would provide the
public with the essential knowledge and broad im-
derstanding to which it is entitled.

In Korea the governors will observe the opera-
tion of all phases of the coordinated relief and re-
habilitation programs of the U.S. and U.N. which
are carried out under the direction of C. Tyler
Wood, U.N. Economic Coordinator. They include
the U.S. progi-am of civil relief in Korea, adminis-
tered by a U.S. Army organization known as the
Korea Civil Assistance Command, with $80.1
million programed this year; a $10 million emer-
gency contribution of U.S. Army food rations at
the end of the fighting last summer; the U.N.
Korean Reconstruction Agency program, to which
the U.S. will contribute up to $30 million ; and the
$200 million Foa program for reconstruction of
basic facilities, agriculture and industry, and im-
port of essential supplies.

Export- Import Bank
Loan to Afghanistan

The Export-Import Bank of Washington an-
nounced on May 4 authorization of a loan of $18.5
million to the Royal Government of Afghanistan
to assist in financing purchase of U.S. materials.

equipment, and services for the Helmand River
Valley development pi'oject and for the organiza-
tion and training of an Afghan road maintenance
unit.

This is the second credit which the bank has
made to assist the Government of Afghanistan in
carrying out the Helmand proje<^t, which benefits
directly about one-fourth of the land area of
Afghanistan and at least one-sixth of its 12 mil-
lion people. The earlier credit was authorized on
November 23, 1949, in the amount of $21 million to
assist in financing the purchase of U.S. materials,
equipment, and services for the construction of the
Kajakai Dam, the Arghandab Dam, and the
Boghra Canal system. The work was carried out
by Morrison Knudsen Afghanistan, Inc., with the
result that primary storage regulation of the val-
ley's two major rivers has been established.

The second stage of the development, which will
involve total costs estimated at approximately $27
million in all currencies, provides for a 3-year
construction and agricultural development pro-
gram, including hydroelectric power installations,
main canals, laterals, and primary drainage. The
construction plans are closely correlated with an
agricultural development program to be carried
out under the direction of the Afghan Helmand
Valley Authority, which is receiving technical
assistance from the Foreign Operations Ad-
ministration.

Tliese developments, for which Export-Import
Bank assistance is being given, will progi-essively
result in an increase in the productive capacity of
Afghan agi-iculture of over 700,000 acres of im-
proved and new land. At the same time, the proj-
ect will make a major contribution to solution of
the problem of the settlement of Afghanistan's
tribal nomads.

Terms of the new financing will provide for re-
payment in 36 semiannual installments com-
mencing October 20, 1958, at an interest rate of
414 percent per annum.

In announcing autliorization of this credit, Gen.
Glen E. Edgerton, Managing Director of the bank,
stated : "This great project constitutes a basic fea-
ture of the economic development program of
Afghanistan and, when completed, will stand as an
enduring monument to the enterprise of the
Afghan people and to the friendship and coopera-
tion of Afghanistan and the United States."

On May 14 the bank announced the signing on
that date of the loan agreement by General Edger-
ton and Mohammad Kabir Ludin, Ambassador of
Afghanistan to the United States. During the
ceremonies. General Edgerton announced that the
bank was sending a mission to Afghanistan im-
mediately to consult with the Government in order
to initiate construction under the new loan pro-
gram as rapidly as possible.

836

Departmsnt of Stale Bulletin

The Influence of Business on American Freedom

Following are the texts of remar'ks made hy
President Eisenhower and Secretary Dulles he-
fare the Board of Trustees of the Committee for
Economic Development at Washington on May 20.

REMARKS BY THE PRESIDENT

White House press release dated May 20

I should like to mention a few things that I
think are associated with your work. First, I
believe that in such a gi-oup as this lies a great
part of the major decisions — power for making
these major decisions — that are going to determine
the character of our future, not only immediate,
but over a longer period.

Many of those decisions are business decisions.
It is a matter of gi-eat gratification, not only to me
but to every associate I have in the administration,
both on the legislative and executive side, that the
decisions you have been making reflect an op-
timism and a confidence that we believe is one of
the gi-eatest factors necessary to ensure that Amer-
ica will continue to march forward as it has been
marching.

Your expenditures for capital investment, plant
improvement, and greater productivity are the de-
cisions of very courageous and forward-looking
people — the same kind of people that have brought
America to its position today.

Now, of course, in their sum, all of the things
that government does affects all of you far more,
possibly, than they did in a simpler day. Wlien
I look over the list today and see great public
works progi'ams in buildings and roads, great ex-
penditures for defense equipment, farm programs,
great extensions in the security progi'ams, old-age
l^ensions, and all of this sort of thing, I am really
staggered by the sum total that is poured into our
economy, in a direct way, by the Government.

Nevertheless, that is still not the important part.
It is the wisdom, the forward-looking capacities
of our businessmen that are going to make Amer-
ica, and keep America, the healthy, economic or-

May 31, 1954

ganism that will bring the happiness and progress
to our j^eople.

Along with it I want to suggest only one thing
where I believe the government, with jou, has a
mission. That is the constant teaching that the
problem on the economic development of the
United States is more than mere economics ; it is
of the heart; it is the spirit; it is made up of
such factors as courage, confidence, jjride, and
patriotism — faith.

We do not keep security establishments merely
to defend property or territorj' or rights abroad
or at sea. We keep the security forces to defend
a way of life.

Now everybody knows that no security force is
any good at all unless it is one of high morale,
belief, and conviction. Consequently, the first
thing we must do, it seems to me, is to believe in
this system of freedom with all our hearts, to
realize we are defending, first of all, our great
system of freedoms and of rights. Everything we
do that seems to iinpinge upon them, although at
times we may think it is necessary in their modifi-
cation, we must examine carefully and say how
far may we go and still not ruin this system.
'Wliere do we establish the line beyond which we
must not step, unless we are going to go and lose
internally what we so desperately try to defend
against externally?

I believe we must in this manner of faith recog-
nize a relationship between free government and
a religious faith. I believe that if there is no
religious faith whatsoever, then there is little
defense you can make of a free system. If men
are only animals, why not try to dominate them?

We reject these theories that are so earnestly
promulgated by the totalitarian dictatorships.
They have to believe or teach those things in order
to get people to accept their domination.

We don't believe them.

That is the kind of thing that I believe govern-
ment can stand for and preach, along with you, as
you try in a material way to bring greater oppor-
tunity to all men — for jobs, for raising their
standards of living. We must constantly remem-
ber that men do not live by bread alone. And the
govermnent and every leader of a business or pro-

837

f ession must band together to show that the United
States is a gi'eat organism of free men who put
freedom above all other values.

I sometimes think that Patrick Henry may have
overstated the case — for any one of us may not
quite accept and live by his immortal statement:
"Give me liberty or give me death." But I still
believe that that statement is true for our race.

We will accept nothing over and above f I'eedom.
And as long as we live that — and believe in it —
and do our work in that spirit, to my mind, Amer-
ica is not only safe but America is going forward
in the expanding and growing economy that will
bring greater and greater happiness to our people,
security for us, and promote peace in the world.

REMARKS BY SECRETARY DULLES

Press release 268 dated May 20.

I gave some thought this morning to whether I
should tell you about some of the things that are
on my mind today and talk about my business;
or whether I wouldn't do better to talk about your
business. I decided that it is easier and always
safer to talk about the other fellow's business.

So, you will excuse me, I hope, if I do not talk
to you about the problems of Indochina and Guate-
mala and other parts of the world which occupy
me very much at the moment. Instead I would
like to direct myself to some of the more basic
problems with which you deal and which are also
of great importance to any United States Secre-
tary of State. I am convinced that, unless the
problems with which you deal are solved in the
way in which you are trying to solve them, it will
not be possible for me or any other United States
Secretary of State to carry out successfully United
States foreign policy.

In order to have a successful United States
foreign policy it is necessary to have back of you
a society of freedom which produces the fruits
which people want. This Nation had a very suc-
cessful foreign policy over a large part of its
national life, particularly during its early yeai-s.
This was because the United States was producing
in a spectacular way, out of the efforts of free men
in a free society, results wliich were so rich in
terms not merely of economics, but of intellectual,
spiritual results, that what we did caught the
imagination of people all over the world. It
became known as the "Great American Experi-
ment." Everyone wanted to do what we were
doing. They wanted to find out how we got that
way, what it was that made us tick. Wlaen they
did find out, they wanted to do the same thing
for themselves. The result was that we had an
environment all around us of friendly and admir-
ing peoples who were eager to take guidance and
leadership from the United States. In those days
being Secretary of State was a leisurely, gentle-

manly job, because most of the work was done for
the Secretary of State by American people all
around the world who were selling Americanism.
In recent years, it seems to me, there has devel-
oped a big question mark throughout much of the
world as to whether or not a free society is really
what its possessors claim for it. That is, whether
men wouldn't get along better under a society of
conformity, a society of dictatorship, where the
government took responsibility for everything
that was done and where the human beings merely
carried out the directions of someone who told
them what to do. Then, everything would be
directed in accordance with economic planning
and there would be no freedom of choice on the
part of the individuals as far as their economic
life was concerned or, indeed, as far as their intel-
lectual or spiritual life was concerned.

Emphasis on Government Activity

As I say, this freedom that we have is not the
dynamic force which it once was. There has
grown up in much of the world a feeling, which
to some extent has prevailed in our own country,
that the real test of a nation's achievements was
to be found in the figures of what the government
itself did, and that what was done outside of gov-
ernment activity did not count for much in the
scales. In my opinion, if that thesis can't be dis-
proved and if we can't demonstrate the capacity
of free men to develop an economy which is ex-
panding, which has a high level of employment —
if that can't be demonstrated, then the bottom is
going to fall out in the United States foreign
policy. In that event we are on the defensive
throughout the world. We soon will be isolated
in the world. And once that happens the first
thing we know we may be compelled, merely by
the pressure of events and by the magnitude of
the forces in other systems, ourselves to fall in
with that system.

I brought with me a couple of speeches which
I made on earlier dates, when I had time to pre-
pare myself. I want to refer first to a speech
which I made before I became Secretary of State
in December 1952. In that speech I talked about
freedom and its purposes, and I ended up by re-
ferring to the hopes and expectations that were
placed in the Eisenhower Administration, which
I believed would be realized, and I said this :

Perhaps the best that it can do will be to encourage, and
make place for, the individual and group efforts which are
the rucst precious jewels of freedom. Nothing has been
more disastrous in the cause of freedom than the growing
assumption that nothing happens unless government does
it.

I would also like to refer to a speech which I
made in Caracas a little earlier this year.^ There

' Bulletin of Mar. 15, 1954, p. 379.

838

Department of State Bulletin

I talked about the economic problems which were
of great concern to all of us in this hemisphere
and particularly to our American friends to the
south of us. I would like to read a couple of sen-
tences out of that speech :

The United States recognizes that the freedom and in-
dependence which we all covet, and which we are re-
solved to preserve, is based not only on political and moral
considerations but also on economic and social well-being.
The United States Government is confident of its ability
to maintain the health and vigor of its own national
economy.

Private Capital and Free Enterprise

Then in discussing the flow of capital and what
was needed to produce an expanding economy at a
high level of employment, I went on to say :

In the United States, private capital and free enter-
prise constitute the great source of our own economic
well-being. That is a source which we do not try to keep
at home. It is free to go abroad, and we welcome its in-
ternational activities. Indeed, President Eisenhower in
his recent Budget Message to Congress recommended cer-
tain modifications in our tax laws which will encourage
our capital and business people to work abroad. How-
ever, private capital cannot be driven. It has to be at-
tracted. Therefore, the decision rests with you.

I refer to these two talks which I made, one
before I entered the Cabinet of President Eisen-
hower, and the other a recent address which I
made in the process of trying to carry out an ef-
fective American policy, to indicate to you how
vitally important it is, in my judgment, that efforts
such as you are making, and have been making over
recent years, should succeed. If you do not suc-
ceed, if through private activities of the American
people along economic lines they do not provide an
expanding economy, if they do not provide a high
level of employment, and if it is necessary in order
to achieve those things to put the increasing re-
sponsibility upon the government in ever-growing
measure, then the demonstration to the world will
be that all we are doing is playing a poor second
to what the Soviet Union is doing and where it is
leading the way. If we merely become a country
which is trailing along a path which is being blazed
by somebody else, then it will be Soviet foreign
policy which will be easy to conduct in the world,
just as American foreigii policy was easy to con-
duct during the last century. For then most of
the peoples of the world will be looking to the
Soviet Union for leadership. They and not we
will have the environment of admiration and re-
spect, and the flattery of imitation. Should that
happen it will be difficult if not impossible for the
United States to conduct successfully its foreign
policy. Much indeed depends upon you and the
kind of activities which you are so successfully and
so ably promoting in the United States.

I often think back to the opening paragi'aj)!! in
The Federalist papers, where it says that "it seems
to have been reserved to the people of this country,

by their conduct and example" to show how a free
society can be successfully organized and operated.
That is the heart of American foreign policy. It
must be that we can show by our conduct and ex-
ample that a free society can work. When we
fail to show that, when our conduct and example
no longer demonstrate that a free society can give
the fruits which people want and which they de-
mand, then that can be the end of the great role
of our nation's history. We may coast alono; for
a while upon a cei'tain momentum accumulated
out of the great deeds of those who went before us.
But we will have undermined the basic concept
upon which our nation was founded — the conduct
and example of a free society. And it is because
I believe that so very strongly that I was eager
to have the opportunity to come here and, if I
could, to make clear again to you what I know
you must realize — that your activities are vital to
the successful conduct of American foreign policy.

President Asks Investigation
of Tung Imports

White House press release dated May 19

The President on May 19 directed the United
States Tarif C ovimission to in<ike an immediate
investigation of the effects of imports of tung oil
and tung nuts on the domestic price support pro-
gram for tung nuts and tung oil and on the amount
of products processed in the United States from
tmig 7iuts or tung oil. The President, having been
advised hy the Secretary of Agriculture, directed
the Tariff C ovitnission to make its investigation
as provided under Section ^2 of the Agricultural
Adjustment Act, as amended.

The President's letter to Edgar B. Brossard,
Chairman of the Tariff Commission, follows:

DiLVR Mr. Chairman : I have been advised by
the Secretary of Agriculture that there is reason
to believe that tung oil and tung nuts are practi-
cally certain to be imported into the United States
under such conditions and in such quantities as
to render or tend to render ineffective or to mate-
rially interfere with the price support program
for tung nuts and tung oil undertaken by the De-
partment of Agriculture, pursuant to Section 201
of the Agricultural Adjustment Act of li)49, as
amended, or to reduce substantially the amount of
products processed in the United States from do-
mestic tung nuts and tung oil.

The Secretary of Agriculture points out that
the Department of Agriculture has, at present, a
mandatory price support i)rogram for tung nuts
and tung oil. He advises me that prices of tung
oil in the United States are below the support price
and have been below since November 1, the begin-
ning of the 195.'?-.54 crop year; and that prices of
tung oil in countries other than the United States

tAoi 31, 1954

839

are below domestic prices and imports are arriving
in the United States at below the support price
level.

The Secretary of Agriculture states that in the
absence of import restrictions and in view of the
existing supiDly-demand conditions for tung oil
as indicated in his Department's preliminary in-
vestigation, it appears practically certain that for-
eign tung oil will continue to be imported in large
quantities, and U.S. prices will continue below
sujjport levels. He says that these large imports
of tung oil replace U.S. tung oil in domestic uses
and force the domestic tung oil under price sup-
port and eventual acquisition by the Government.
The result, he believes, is that the price support
program objectives of enabling producers to mar-
ket their crops in an orderly manner through reg-
ular trade channels, at prices at least equal to the
effective support level, will not be achieved; and
that unrestricted imports of below-support-price
tung oil will render ineffective or materially in-
terfere with the price support operation and re-
duce substantially the amount of products proc-
essed from domestic tung oil.

Accordingly, I direct that the Tariff Commis-
sion make an immediate investigation of this mat-
ter in accordance with Executive Order No. 7233,
dated November 23, 1953, promulgating regula-
tions covering investigations mider Section 22 of
the Agricultural Adjustment Act, as amended.
The investigation and report of findings and rec-
ommendations of the Tariff Commission should
be completed as promptly as practicable.

The Tariff Commission, in its investigation,
shall determine whether tung oil and tung nuts
are being or are practically certain to be imported
under such conditions and in such quantities as to
render or tend to render ineffective or materially
interfere with the price support program for tung
nuts or tung oil, or to reduce substantially the
amount of products processed in the United States
fi'om domestic tung nuts or tung oil.
Sincerely,

DwiGHT D. Eisenhower

Import Duties on Scissors
not To Be Increased

White House press release dated May 11

The President on May 11 declined to accept the
recommendations of the United States Tariff Com-
mission for a doubling of the duty on the imports
of certain types of scissors and shears.

The Tariff Commission had made an investiga-
tion of the effect of the trade agreement conces-
sions on the domestic scissors and shears industry,
pursuant to section 7 of the Trade Agreements
Extension Act. In its report, a majority of Com-

mission members found that scissors and shears
are being imported into this country in such in-
creased quantities as to threaten serious injury
to the domestic industry producing like or directly
competitive products.^

The President, in identical letters to Sen. Eu-
gene D. Millikin, Chairman of the Senate Finance
Committee, and Eep. Daniel A. Reed, Chairman
of the House "Ways and Means Committee, indi-
cated that he did not feel that the evidence pre-
sented established conclusively that imports of
scissors and shears threaten serious injury to tlie
domestic industry. The President questioned the
adequacy of the data presented to the Commission,
accounting only for a little more than one-third of
domestic production. He also pointed out that
imports, after reaching their high point in 1952,
have leveled off since then, with the rate during
1953 and early 1954 somewhat below that of 1952.

The President, in commenting on the Commis-
sion's decision to recommend action on the basis
of threatened rather than actual injury, said he
believed that "when this provision of the law is
invoked, the evidence brought forth to substantiate
the judgment of threat must be of such a character
as to leave no doubt that actual injury is immi-
nent." Tlie President stated that in the present
instance he is not persuaded that the evidence is
of such a character.

Text of the President's Letter

Dear Mr. Chairman : I have carefully consid-
ered the report of the United States Tariff Com-
mission, dated March 12, 1954, regarding its
investigation pursuant to Section 7 of the Trade
Agreements Extension Act of 1951 with respect
to certain types of scissors and shears.

The question of injury is reported to arise in
the case of imported scissors and shears (other
than pruning and sheep shears) valued at more
than $1.75 per dozen. The Tariff Commission is
unanimous in finding that there is no present seri-
ous injury to the domestic industry from imports
but, by a divided vote, finds a likelihood of such
injury in the future.

In my opinion, the evidence presented has not
sufficiently established that the domestic industry
is subject to serious injury from importations,
either present or prospective, to warrant my ap-
proving the recommendation of the majority of
the Commission for a doubling of the duty, which
now affords nn average protection of 42 per cent
ad valorem.

The domestic plants producing scissors and
shears turn out a broadly diversified line of goods,
from sewing scissors to barbers' shears. The cate-
gory of imports upon which this doubling of duty
is suggested comprises 94 per cent of the total

' Copies of the Tariff Coinmission report may be ob-
tained from the United States Tariff Commission, Wash-
ington 25, D. 0.

840

Department of Stale Bulletin

imports of scissors and shears. The data fur-
nished by the industry to tlie Tariff Commission
afford insufficient information, either as to the
precise character of the scissors and sliears con-
stituting the bulk of the imports, or as to the focus
of the alleged injurious competition between the
foreign and domestic products. There is also a
question as to the adequacy of the data on the
financial experience of American producing firms
presented in support of their claim of serious in-
jury from imports.

It is questionable whether such audited finan-
cial statements requested by the Tariff Commission
as were finally submitted, by firms accounting for
little over one-third of the domestic production,
constitute a "representative sample." The major-
ity of the firms, including some of the most im-
portant members, apparently did not supply such
data, and the full financial statements for the
eight firms which did furnish them showed a
higher "net worth" during the latest year than
for any preceding period.

This report does indicate that the last few years
have seen a substantial increase in imports of
scissors and shears, and that the shipments fi'om
domestic plants have not been maintained at the
exceptionally high level of 1948-1950. In view of
the large war-deferred backlog of demand during
these years and the fact that the usual European
sources of supplies had not yet been fully restored
during that period, a useful basis of comparison
is with the years immediately before the war. So
viewed, it appears that the value of the domestic
shipments of scissors and shears has been running
at about three times that of pre-war, with the early
months of 1953 showing some recovery over the
previous slackening. The volume of imports has
leveled off since the high point in 1952, with the
rate of importations during 1953 and early 1954
somewhat below that of 1952.

My inquiries with respect to the affected com-
panies indicate that they are not in a depressed
condition, nor are the employees in the industry
producing scissors, shears and related products
suffering — or about to suffer — any reduction in
wage rates, earnings or opportunities for employ-
ment.

The Commission, consistent with the terms of
the law, made its decision on the basis of a threat
of serious injury, rather than present injury re-
sulting from a trade agi-eement concession. Wlien
this provision of the law is invoked, I believe that
the evidence brought forth to substantiate the
judgment of threat must be of such a character as
to leave no doubt that actual injury is imminent.
In the i:)resent instance, I am not persuaded that
the evidence is of such a character.

In view of the above consideration, therefore,
I am not authorizing an increase in the existing
import duties on scissors and shears.
Sincerely,

D WIGHT D. Eisenhower

Congressional Consideration of
Economic Policy Proposals

Wliite House press release dated May 20

The White House on May 20 made public the
following exchange of correspondence between the
Presidejit and Charles II. Percy., President of the
Bell & Howell Company., Chicago., III.:

President Eisenhower to Mr. Percy

Dear Mr. Percy : It is gratifying to have your
letter of May fourteenth expressing strong support
for the foreign economic policy proposals con-
tained in my Message to the Congress of March
thirtieth.' In that Message I set forth what I
believe to be a minimum essential program for
the building of a stronger America as an integi-al
part of a strong and economically vigorous free
world. Because I consider the enactment of that
progi-am indispensable to the work that this Ad-
ministration must do in the national interest, I
have given much thought to the means by which
such enactment can best be assured.

As you know, several recommendations in my
Message on foreign economic policy can be car-
ried out without further legislative authority.
Among these are clarification of the application
of the Buy American legislation, assistance
through the International Monetary Fund and
the Federal Reserve System to nations which un-
dertake convertibility of their currencies, rene-
gotiation of the organizational provisions of the
General Agreement on Tariffs and Trade for sub-
mission to the Congress, encouragement to over-
seas investment through giving full diplomatic
support to United States investors abroad and
through actions to encourage more extensive travel.

Accomplishing enactment of the heart of the
program — extension of and amendment of the
Trade Agi-eements Extension Act of 1951, as
amended — would, I believe, best be served by care-
ful and deliberate action taken on the basis of ex-
tensive and unhurried hearings. In this way the
wide public support for the program that I know
exists and to which you attest, will have adequate
time and opportunity to express itself. More-
over, those who are opposed would have full op-
portunity to be heard. It is my hope and expecta-
tion that the Committee on Ways and Means, fol-
lowing the pattern of its historic work last year
on the tax bill, will initiate consideration of the
trade agreements aspect of the program in ample
time so that full and adequate hearings may be
completed between now and the convening of the
Congi'ess next January. Under this procedure the
prospect for consideration by the Congress early
next year is excellent.

' Bulletin of Apr. 19, 1054, p. 602.

May 3J, 1954

841

Since the present Act expires on June 12, 1954, a
simple one-year extension will, of coui-se, be re-
quired for the interim period.

In addition to initiating hearings on the vital
subject of extension and amendment of the Trade
Agi'eements Extension Act. there is mucli else that
should be accomplished in this session of the Con-
gress to carry into effect the recommendations of
my Message of March thirtieth. The tax incen-
tives for foreign investment provided for in H. R.
8300 will, I am confident, become law shortly. I
look forward to enactment in this session of the in-
crease in the tourist allowance from $500 to $1,000
as provided in H. R. 8352, now pending before the
House Ways and Means Committee. It is my hope
that the Congress will shortly complete action on
H. R. 6584, dealing with customs valuation, a bill
which has already passed the House and is now
pending in the Senate Committee on Finance.
Simplification of commodity definitions and rate
structures in the Tariff Act based upon a study by
the Tariff Commission, and a better method of clas-
sifying articles not enumerated in the tariff sched-
ules should be authorized. Improvement in the
statutes governing the administration of customs
procedures and changes in the anti-dumping law
and procedures to speed up its administration
should also, I believe, be provided at this session.

Accomplishment of these things now would rep-
resent substantial progress in which we all could
take satisfaction. With these first steps behind
us, the Congress will be in a position early next
year to undertake immediate consideration of the
vital part of the program — the further amendment
and extension of the Trade Agreements Extension
Act. This overall progi-am will provide the for-
ward motion in our country essential to progress
the world over in raising levels of profitable trade
and investment. It is my deep conviction that in
this direction lies the gi'eater security for America
that comes from a stronger free world.
Sincerely,

DwaoHT D. Eiseniio%\t;r

Mr. Percy to the President

Dear Mr. President : Since the meeting in your
office on April 29th with a group of businessmen,
for whom I had the honor to act as spokesman, we
have found nuich interest throughout the country
in your foreign econonric policy proposals that
went to the Congress on March SOth. We are per-
suaded that your sound and moderate program
represents an essential step toward the achieve-
ment of a higher level of trade and investment.
We believe, too, that there exists among all seg-
ments of the American people strong support for
your proposals. It is, of coui-se, not yet articulate
to anywhere near its maximum degree. We are

confident, however, that careful consideration and
discussion will bring forth expression of that
support.

We, as citizens interested in this cause, wish to
be of assistance in our own communities in encour-
aging better understanding of the relationship of
your program to the welfare of our people and of
our friends throughout the free world. It would
be very helpful to obtain your views with respect
to the course ahead in translating your recom-
mendations into action.

We want you to know, Mr. President, that we
stand ready to sustain your leadership in this vital
matter in every way we can.
Respectfully yours,

Charles H. Percy

Current Legislation on Foreign Policy
83d Congress, 2d Session

(Continued from p. 825)

Stiitements of .Secretary of State John Fo.ster Dulles and
Adm. Arthur Radford, Chairman, .Joint Chiefs of Staff.
Hearint;s before the Senate Committee on Foreign Rela-
tions on Foreign Toliey and its Relation to Military
Programs. March ID and April 14, 1954, 51 pp.

Eif-'hth Session of the General Assembly of the United
Nations. Report by Uon. Frances P. Bolton and Hon.
James P. Hicliards. Committee print. April 26, 1954,
XI, .-{70 pp.

Thirty-fifth Report to Confiress on I.end-Lciise Operations.
Message from the President Transmitting tlie Thirty-
tiftli Report to Congress on Lend-Lease Operations for
the Year Ending December 31, 1953. Payments and
Settlements: (Jeneral Statements of Account; Current
Settlement Negotiations; Liberia Port Project; Lend-
Lease fiscal Operations; Status of Nations; Funds
Appropriated and Authorized ; Lend-Lease Act. H. Doc.
366, 37 pp.

Convention with Japan Relating to Taxes on Income.
Message from the President Transmitting a Convention
l)etween the United States of America and Japan for
the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with Respect to Taxes on Income,
Signed at Washington on April 16, 1954. S. Exec. D,
May 7, 1954, 17 pp.

Convention with Japan Relating to Taxes on Estates,
Inheritances, and Gifts. Message from the President
Transmitting the Convention between the United States
of America and Japan for the Avoidance of Double
Taxation and the I'revention of Fiscal Evasion with
Respect to Taxes on Estates, Inheritances, and Gifts,
Signed at Washington on April 16, 1954. S. Exec. E,
May 7, 1954, 11 pp.

Copper Import-Tax Suspension. Report to accompany
H. R. 7709. H. liept. 1574, May 10, 19.54, 2 pp.

Amending the Trading with the Enemy Act. Report to
accompany S. 2420. S. Rept. 12S5, May 10, 1954, 11 pp.

Payments to German and Japanese Citizens. Report to
accompany H. R. 8488. H. Rept. 1595, May 12, 1954,
8 pp.

Long-Term Time Charter of Tankers by the Navy. Report
to accompany S. 3458. S. Rept. 1337, May 13, 1954, 8 pp.

842

Department of State Bulletin

East-West Trade Trends

EXCERPTS FROM THE FOURTH REPORT TO CONGRESS ON THE BATTLE ACT

Harold E. Stassen^ Director of Foreign Opera-
tion's, on May 17 submitted to the Congress the
fourth se/nian7iual report on operations under the
Mutual Defense Assistance Control Act of 1951
( the Battle Act). Printed ielow are Mr. Stassen's
letter of transmittal, an introductory note, and the
full text of Chapter V, dealing with U.S. policy
an strategic trade controls. Chapters I through
IV and. Chapter VI, which are not printed here,
are entitled respectively : ^^Stalin^s Lopsided Econ-
omy,^' '"'•The Neto Regime and the Consumer,^'' '•'•The
Kre7nlin\s Recent Trading Activities,'''' "TFAa^'s
Behind It All,''' and ''The Battle Act and Eco-
nomic Defense^''

Copies of the report may he oitained from the
^superintendent of Documents, 17.8. Government
Printing Office, Washington ^6, D.C. (36^) .

LETTER OF TRANSMITTAL

To the Congress of the United States:

I have the honor to submit herewith the fourth
semiannual report on operations under the Mutual
Defense Assistance Control Act of 1951 (Battle
Act), the administration of which is a part of my
responsibilities.

The period covered is July through December
1953.

A large part of this report is an examination of
what tlie Soviet Union has been doing in its trade
relations with the free world. In order to put the
Russian activities of the last half of 1953 in a more
miderstandable framework we have ranged back
over the last 30 years to show how foreign trade
fits into their economy and serves their purposes.
To study Soviet trends and tactics is obviously
important to the economic defense of the free
world. To make a report to the Congress and the
public on these matters should also be useful.
There has been much public interest in the subject.

The selection of this theme, however, does not
mean that Soviet trade activities are the only im-

portant consideration to be taken into account in
the formulation of U.S. economic defense policy.
They are not. Many other factors enter in, as told
in Chaiiter V.

In preparing the report my staff has drawn
heavily upon the expert knowledge of the Depart-
ment of State and other agencies. But of course
the responsibility for the report is ours.

In my last Battle Act report I said that the
strategic trade control program had been ham-
pered by lack of public knowledge. This is still
true, but to a less extent, it seems to me. There is
a better understanding of the Government's poli-
cies, a greater realization that the soundness of
East-West trade policy is to be judged not pri-
marily on the amount of trade, but more on what
kind of goods move back and forth, and on what
terms they move.

Harold E. Stassen,

Director, Foreign Operations Administration.

Mat 17, 1954.

INTRODUCTION

Note on "Strategic" and "Nonstrategic"

To help protect the security of the free world,
the United States and certain other countries have
been working together for more than 4 years to
withhold strategic goods from the Soviet bloc.

But how can you tell strategic goods from non-
strategic goods ? A good many people have asked
that question. It is a reasonable question and it
deserves a nontechnical answer.

The answer is that strategic goods, as under-
stood in the day-to-day operations of the program,
are those goods which would make a significant
contribution to the warmaking power of the Soviet
bloc.

This is a practical guide to action. There is
no rigid definition that holds good for all times.

May 3T, 1954

843

places, and circumstances. All strategic goods
don't have, the same degree of strategicness. The
free countries have embargoed some, merely
limited others in quantity, and kept still other
items under surveillance so that controls could
be imposed if necessary. Even the same item may
vary in strategic importance, depending on the
destination, the changing supply situation behind
the Iron Curtain, and other circumstances which
may change from time to time. Whether an item
includes advanced technology is an important
consideration. In specific cases, two experts of
equal competence may disagree on these things.
Two agencies of government, differing in func-
tion, may bring different points of view to a given
problem. The same is true of governments.

Since there is no distinctly visible boundary
between "strategic" and "nonstrategic," some peo-
ple insist there is no such thing as a nonstrategic
item at all. It is true that even bicycles, type-
writers, or ordinary hardware may help the other
fellow by strengthening his general economy.
And these people argue that anything that con-
tributes to the general economy helps in a military
way, too.

That is a correct concept in actual warfare but
it is not an acceptable concejit of "strategic" in
the ]iresent situation, for trade on certain tenns
can help the free nations too. They carry on
two-way trade with the Soviet bloc for concrete
commercial benefits. The problem is to gain those
benefits without permitting the Kremlin to accel-
erate the growth of military power or to divide
the free world.

In rating items as strategic or nonstrategic, it
is clear that there are innumerable conunodities,
used entirely or mainly for civilian purposes,
which would not make a clearly significant contri-
bution to war potential. No one would have
trouble drawing a line between a jet plane and a
suit of clothing, to take an extreme example. Few
would have difficulty putting cobalt on one side of
the line and butter on the other. As for the border
area M'here it is less clear what contribution an
item would make, the allied governments put their
heads together, pool their facts, and tiy to arrive
at mutually acceptable judgments.

As President Eisenhower has said, "Unity
among free nations is our only hope for survival
in the face of the worldwide Soviet conspiracy
backed by the weight of Soviet military power."

U.S. POLICY ON STRATEGIC TRADE CONTROLS

The economic and trading activities of the So-
viet empire require close and continual study by
free governments, but Soviet actions alone do not
determine free-world policies.

Let us be perfectly clear on this point. The
theme of the early chapters of this report has been
the Soviet "trade offensive" and its background,

844

just as the theme of the third semiannual Battle
Act report ^ was the enforcement of free-world
strategic trade controls. The selection of the
theme, however, should not be taken to mean that
Soviet trading activities are the only factor that
free-world nations must take into account when
they consider what economic defense policies to
mamtain in the interest of their security.

In 1953 certain other considerations were de-
manding the careful attention of the agencies of
the United States Government that are responsible
for economic defense.

The Background

One of these considerations was the probability
tliat the world faced a long period of tension short
of general war, though witii the ever-present risk
of war. In such a period, no matter how long it
might last, it would be essential for the free na-
tions to remain strong and alert, to move together
in whatever steps were necessai"}' for military or
economic defense, and at the same time to keep
open the paths that might lead to a sounder basis
for peace.

Anotlier factor of historic significance was the
massive upswing in the strengtli of tiie free world.
Western Europe, especially, had moved into a far
stronger position, both militarily and economi-
cally, than it had occupied a few years earlier.
This gave the West greater bargaining power and
it reduced the dangei-s of undue economic de-
pendence on Soviet-bloc trading partnei-s.

As Western Europe gi-ew stronger, tlie need for
economic assistance from the United States de-
clined. Although military aid continued in a big
way, economic aid began to taper off.

Accompanying the increase in Western eco-
nomic stiengtli was a general shift in the free
world from a "seller's market," in whicli goods
were scarce and sellers had a relatively easy time
finding buyers, to a "bu3'er's market," in which
buyers generally could pick and choose. Some of
the free countries had prmluccd themselves into
surpluses of some conunodities — or had built up
surplus capacity and needed additional markets
in order to keep their industries prosperous.

This change brought more and more pressure
from people in free countries to carry on increased
trade with the Soviet bloc. Some groujis had been
clamoring for this all along and had helped spread
the time-worn Communist propaganda that a
friendly and peace-loving "big brother" in Mos-
cow was ready and waiting with an unlimited
paradise of peaceful trade and that the only ob-
stacle to its attaimnent was the strategic trade
controls of the West. But now large immbers of
a?ii'/-Commimist businessmen, even though many
of them were aware that the Communist propa-

' For excerpts, see Bulletin of Oct. 26, 1953, p. 569.

Deparlment of State Bulletin

ganda was false and that Soviet policies had
always been the prime deterrent to a large and
peaceful commerce, felt that some increase in
East- West trade would be beneficial as a supple-
ment to their much greater trade in the free world.
They recognized the limitations of the Soviet bloc
as a stable, long-term trading partner, yet saw no
reason why an expansion should not be sought.

This attitude was stimulated by the Korean
truce of July 27, 1953. It was also stimulated by
the gestures that the Soviet Union began making
in the direction of livelier East- West trade.

Governments in the free world tended increas-
ingly to the view that some revisions in Western
controls might be made without sacrifice of se-
curity interests.

Basic Policy Reaffirmed

The new administration in Washington, taking
account of such considerations as those, and wish-
ing to be sure that United States policy was the
most effective that could be devised, began a thor-
ough review of the economic defense policy of the
United States in the spring of 1953.

This policy review was completed around the
beginning of August. The third semiannual Bat-
tle Act report, which was published last Septem-
ber 28 and which covered the first half of 1953,
stated that the conclusions of the review "will be
reflected in the economic defense actions of this
Government during the months to come." In the
present report, which covers the second half of
1953, it is possible to give more information about
those conclusions.

As a result of the policy review the basic eco-
nomic defense policy of the United States was
reaffirmed. There were, however, some shifts of
emphasis — with respect to trade with the Soviet
bloc in Europe — designed to make the basic policy
more effective. We shall discuss those shifts pres-
ently, but first let's summarize the basic policy as
it has existed throughout the 6 months covered
by this report.

This basic policy of the United States on East-
West trade rested on the following principles :

1. Mutual security can best be advanced by
continued increase in the political, economic, and
military strength and cohesion of the free na-
tions relative to that of the Soviet bloc.

2. The free nations should not furnish a po-
tential aggressor with goods which directly and
materially aid its war industry and military
buildup.

3. The free world may derive a net security
advantage out of some East- West trade.

4. Security export controls should be applied
on a selective basis, except in the case of militaiy
aggression, when a policy of complete embargo
may be in order.

In accordance with those principles the United
States has long been exercising certain controls
over its own trade. Here is a short description of
those controls:

United States exports to Soviet tloc in Europe:
Not prohibited entirely, but limited to clearly non-
strategic goods.

United States imports from, Soviet Hoc in
Europe: Not prohibited, except for certain types
of furs.

United States shipping to Soviet hloc in Europe:
Not prohibited, if carrying properly licensed
goods.

United States exports to Communist China and
Ntorth Korea: Prohibited.

United States imports from Communist China
and North Korea: Prohibited. (Some licenses
were issued, though not recently, for goods needed
in United States military stockpiles and in special
hardship cases.)

United States shipping to Conwnunist China and
North Korea: Prohibited.

As for the trade of the rest of the free world
with the Soviet bloc, the policy of the United
States was set forth in the Battle Act (the text of
which is at the end of this report) ^ and in certain
executive directives. The policy was not to pre-
vent all East- West trade but to cooperate with
other free-world countries in a system of selective
and flexible controls. The aim was to prevent
Soviet-bloc countries from obtaining items that
would contribute significantly to their warmaking
power and to insure that the trade which did go on
served the real economic and security interests of
the West.

Ever since the Communist aggression in Korea
in 1950, the Far East has presented a policy prob-
lem different from the problem of controlling ship-
ments to the bloc in Europe. The official position
of the United States Government — both before
and after tha 1953 policy review — was that the
current levels of controls by the United States and
the free world over shi])ments to Communist China
and North Korea should be maintained. Later on
in this chapter we shall rejiort on what happened
in the China trade during the last half of 1953.

The New Direction of Policy

So much for the basic policy. Now for the shifts
in emphasis that took place in United States eco-
nomic defense policy toward the Soviet bloc in
Europe during the C months covered by this report.

It was determined that the system of the free-
world controls that had been develojDed during
the last 4 years substantially satisfied the objec-
tives of retarding the buildup of Soviet warmak-
ing power and strengthening the free world rela-
tive to the Soviet bloc. The effort to extend the

'Not printed here.

May 31, ?954

845

control lists appeared to be reaching the pomt of
diminishing returns. It was decided not to pursue
an extension of the lists to many other items—
though items would always be added occasionally
because of changed conditions or new information.
On the other hand the Government recognized
a need for simplifying the lists and removing or
downgrading items, which, in the light of current
information, were no longer deemed to be so im-
portant. The Government believed that much
could be done in the months to come, if done care-
fully and with due regard for security, to adjust
the "controls to a "long-haul" basis. (Develop-
ments in the first half of 1954 will be reported in
the next Battle Act report.)

In general, it was decided to concentrate on seek-
ing more effective control of those items which, if
shtpped, would make a significant contribution
to Soviet warmaking power.

The main thrust from the United States toward
improvement of the control system, it was decided,
would be in the field of iini:)lementation and en-
forcement of controls. Notable deficiencies existed
in that field. To overcome them the free nations
would need to keep improving their techniques,
and would need closer international collaboration
and pooling of information.

The new direction also took into account, even
more than ever, the economic and political prob-
lems of free-world countries. Free-world unity
was so vital, and the economic health of free na-
tions so important to the defense of free institu-
tions, tliat problems of our allies deserved to be
wiven great weiglit in determining the actions of
This Government in the East- West trade field.
This was not a new concept, but this Government
felt that such problems needed to be discussed
amono- the free countries more than in the past.

In "setting the new direction the Government
recognized —

( 1 ) that maintaining commercial ties between
the free world and the Soviet bloc— compatible
with the security requirements of the free
^orld— may have positive advantages during
the present period of tension ;

(2) that there are, however, risks that trade
may in some cases lead to undue reliance on the
Soviet bloc as a trading jiartner ;

(3) that it is important to encourage trade
within the free world, including the entry of
commodities into the United States, by reducing
trade barriers, especially when the effect of such
action would be to decrease the reliance of the
free world on the Soviet bloc.

Those were among the highlights of the new
direction. As explained before, the basic eco-
nomic defense policy was not altered.

Reviewing the Control Lists

In the light of this basic policy, and its new
direction, the Government agencies responsible

846

for economic defense were engaged in certain
projects during the period covered by this report.

One of the most important of these projects was
the review of the control lists. This review was
a complex and time-consuming operation, which
continued into 1954.

It is easy for the public to become contused
about control lists, not only because of their neces-
sarily secret nature hut also because there are so
many lists, serving different purposes.

The United States has had three main lists for
its own exports :

The munitions list, compiled and administered
by the Department of State; the atomic energy
list, compiled and administered by the Atomic
Energy Commission; and a much longer hst,
covering all other controlled items, which is com-
piled and administered by the Department of

Commerce. , . ,• rm

In addition there are the Battle Act lists, i hey
relate to potential exports from other countries
to the Soviet bloc. They include those primary
strategic items which we believe the other free-
world countries should embargo in the interest of
mutual security.

Then there are lists consisting of those items —
at varying levels of control— which the cooperat-
ing free-world nations have accepted as a part of
their informal coordination of controls.

All of these lists are subject to a continual proc-
ess of review. But as a part of the new direction
in United States policy, this continuing review
process was broaclened into an intensive reap-
praisal. Specialists from several Government
agencies were reevaluating all our listings m terms
of sharper and more meaningful criteria, and in
the li"-ht of all the new relevant technical and in-
tellio-ence information that could be assembled.
This review would furnish the basis for appro-
priate adjustments and for United States discus-
sions with other governments in 1954 concerning
the coverage of export controls.

East- West Trade: Road to Peace

It is a part of the economic defense policy of the
United States never to lose sight of the vital need
to keep open all paths that might lead to a sounder
basis for peace in the world. _

We not only recognize the economic benehts
that free-world nations can get from an expand-
in o- East- West trade in peaceful goods; we also
hem- in mind the possibility that trade contacts
can help to improve relations among peoples.

But in hoiking for and working toward that end,
we are not tliereby accepting the belief that inter-
national trade inevitably and automatically leads
toward peace. Hitler's Germany expanded its for-
eio-n trade right up to the outbreak of World Wax
if AVe must view with skepticism the Communist
propaganda line on trade and peace, for we know
what their trading objectives and methods are.

Departmenf of State Bulletin

East-West trade as now constituted is carried on
not with private individuals in the Soviet bloc but
with agencies of Soviet-bloc governments.

International trade in general can be a broad
highway toward better living standards aiul more
peaceful relations. It has served humanity well.
There should be more of it. But it takes two to
trade, and trade is not necessarily a road to peace
unless both parties wish to make it so.

Trade Within the Free World

Toward the close of the 6-month period under
review, the President's Commission on Foreign
Economic Policy (Randall Commission) was hard
at work. There was a great amount of public
discussion, continuing into 1954, concerning ways
in which the United States and other free-world
countries could eliminate or reduce the obstacles
that hinder the international exchange of goods.

The Commission, issuing its report in January,
had much to say on the reduction of trade ob-
stacles.'

The Commission also included a section on East-
West trade, recommending that the United States
not object to more trade in peaceful goods between
Western Europe and the European bloc.

These two subjects, trade liberalization and
East-West trade, are connected with each other.
When businessmen in free-world countries are
hindered — either by trade barriers or other arti-
ficial causes — from selling products in other free-
world countries, they are more prone to seek mar-
kets in the Soviet bloc.

To a certain extent this aggravates the problem
of maintaining adequate strategic trade controls
and the problem that some free-world countries
have of avoiding undue dependence on the Soviet
bloc.

It would be impractical to seek the elimination
of all trade restrictions within the free world but
it is important to reduce unjustifiable barriers and
it is also important to take whatever other steps
are possible to develop new markets and new
sources of supply.

To bring alteniative markets and supplies into
being is not an overnight task but it must be done.
It means the reduction of many restrictions in the
United States, thus allowing more goods to come
in from our friends and allies. It means a similar
loosening of restrictions by other free nations. It
means more and better economic integration
among the European countries. It means steady
advancement in the economic development of the
underdeveloped areas of the world.

All those things are important for many rea-
sons. East-West trade is one aspect of the matter.
The United States Government recognizes that
hindrances to the exchange of goods within the

free world do have a definite relationship to the
international system of strategic trade controls.

The China Trade Falls OH

This report so far has concerned itself almost
entirely with trade between the free world and
the Soviet bloc in Europe. Now it is time to shift
our attention to the China trade.

During the 6 months under review, free-world
trade with Communist China fell far below the
first half of the year. Free-world exports to Com-
munist China from July through December are
estimated to have been $111.1 million, as com-
pared with $158.9 million in the first half of 1953.
This meant that shipments in the report-period
fell below even the extremely low level of the first
half of 1952.

The result of this decline in shipments to Com-
munist China was that the estimated total for all
of 1953 was $270 million, only a slight rise in value
from the 1952 exports of $256.5 million.^ A larger
rise had been foreseen. The last Battle Act report
to Congress, Worldwide Enforce-rnent of Strategic
Trade Controls^ pointed out: "If free- world ex-
ports 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 be around $375 mil-
lion." It actually seems to have been about $100
million short of that.

Free-world imports from Communist Cliina also
dropped in the second half of 1953, though not so
sharply as exports. They amounted to $198.4 mil-
lion in the second half, according to a preliminary
estimate, compared with $226.6 million in the first
half of the year. This brought the estimated an-
nual total of imports to $425 million in 1953, as
compared with $365.8 million in 1952.

It was true that in spite of the decline in the
latter part of the year, some countries were able
to sell more goods to the Chinese Communists in
1953 tlian they had in 1952. For example, exports
of Western Germany rose from $2.8 million in
1952 to $25 million in 1953, in line with the general
rebirth of German foreign trade. Exports of
France rose from $3.3 million to $12.4 million, and
Japan from half a million dollars to $4.5 million.
Exports from the United Kingdom rose from $12.8
million to $17.6 million. On the other hand ex-
ports from the British Colony of Hong Kong, the
traditional gateway of commerce to and from the
mainland of Cliina, fell so drastically in the second
half of 1953 that the Hong Kong total for all of

' For text of the Commission's recommendations, see
Bm.LETiN of Fob. S. 1054, p. 1.S7.

'Tliese 19;')2 and 19.53 figures are adjusted to exclude
Swiss watches, which appear in Swiss official statistics as
exports to China, but wliicli actually went to the British
Crown Colony of Hong Kong and were reexported to other
free-W(irld countries. Swilzerhmd, in reporting its
"China" trade, lumps together its trade with Communist
China, Nationalist China, an<i Hoiig Kong. The watches
in question are t)elieved to amount to approximately .$1
million a month, on the average. [Footnote in the
original.]

N^ay 31, 1954

847

1953 was only $94.6 million, or little more than
the $91 million of the previous year. And the
Communists slashed their buying of Pakistan cot-
ton, whicli had come to about $84 million in 1952,
down to about $7 million in 1953.

They Play by Their Own Rules

Clearly the glitterinfr prospect of a vast and
lucrative trade with the Chinese Communists
which had captured the imagination of many
Western traders was not materializing.

The China Association, a British trade organi-
zation, said in December: "There is no doubt but
that the i^otentialities have been greatly exag-
gerated in the public mind, partly as a result of the
superficial successes of the various unofficial trade
missions which have paid visits to Peking this year.
This overeagerness has unfortunately been re-
flected in an increasing severity of the terms which
China now demands."

Information about the increasing severity of the
trade requirements which Communist China was
trying to impose upon the free world came from
all sides in the last half of 1953. Those tenns
would hardly suggest a genuine interest in normal
and expanding trade relations.

When the Chinese Communists sell, they de-
mand a confirmed letter of credit in the hands of
their own bank before they will ship the goods.
They collect pa^-ment as soon as they have loaded
the goods on a ship. They present a Communist
Chinese Government certificate of inspection
against which the buyer has no recourse if he
finds — weeks or months later — that the quality of
the goods is below specification.

One who sells to Communist China is asked to
follow a very different set of rules. He ships his
goods and waits until they have arrived in Com-
munist China, have been inspected by Communist
Chinese Government inspectors, and are in the
hands of the buyers, before he can collect his
money. In the meantime he extends credit with-
out interest, immobilizing the capital lie had in-
vested in the cargo, freight, and insurance, and is
forced to accept claims resulting from inspection
of his goods in Communist China.

No doubt exceptions to these rules are still being
granted to some Western traders, for the rules are
so remote from long-recognized international
trading practices that many firms would naturally
balk at them. But there is no doubt that the un-
conventional and frustrating practices of the Chi-
nese Communists have interfered seriously with
the amount of commerce and have disillusioned
many who saw an almost unlimited market in
China's multitudes.

United States Policy on the China Trade

As mentioned before, the policy of the United
States throughout the G months under review was

848

to continue its total embargo on all exports —
strategic or nonstrategic — to Communist China
and North Korea, which were aggressors, and
labeled as such by the United Nations. Riunors
heard from time to time in various countries, to
the effect that the United States had decided to
relax its embargo or was under irresistible pres-
sure to do so, and that American cars were reach-
ing the Chinese mainland by way of Japan, were
completely untrue.

The position of the United States throughout
the review period was also that the free-world
embargo on strategic goods to Communist China —
an embargo much more sweeping than that apply-
ing to the European bloc — should be maintained.
Other free governments took the same position,
and the embargo continued in force. Such re-
laxations as took place in controls were changes
that did not affect the multilateral embargo. One
example was the change in the control of anti-
biotics and sulfonamides. The nations which
carry on trade with Communist China had been
controlling those drugs, while hostilities continued
in Korea, by limiting the quantities shipped; the
quotas assumed by the various nations were sched-
uled to expire on December 31, 1953, and were
permitted to expire on schedule. Another example
was the relaxation by Japan on certain items that
had been under embargo by that countiy — but
these were items that the otiier countries were not
embargoing. The same was true of the United
Kingdom's decision to permit the shipment of light
passenger automobiles.

Though the ])olicies of other major free gov-
ernments regarding trade with Communist China
have not been identical with our own, the United
States has not attempted — and will not attempt —
to bring about conformity through coercion.

This is true of all of our relations witli other
countries, not merely our relations with them on
the issue of Communist China.

Leaders of this Government forcefully re-
affirmed that principle during the period we are
reviewing.

Secretary of State John Foster Dulles said in a
statement on December 1 : °

The tide of events has made our Nation more power-
ful, but I believe that it should not make us less loyal
to our great American traditions and that it should not
blur our dedication to the truths, expressed in our
Declaration of Independence, that we owe a respect to
the opinions of others.

Today it is to our interest to assist certain countries.
But that does not give us the right to try to take them
over, to dictate their trade policies, and to make them
our satellites.

Indeed, we do not want weak or subservient allies.
Our friends and allies are dependable just because they
are unwilling to be anyone's satellites. They will
freely sacrifice much in a common effort. But they will
no more be subservient to the United States than they
will be subservient to Soviet Russia.

' Bulletin of Dec. 14, 1953, p. 811.

Department of State Bulletin

Let us be thankful that they are that way, and that
there still survives so much rugged determination to be
free.

On December 2, President Eisenhower endorsed
the declaration of the Secretary of State and said
this : "

The easiest thing to do with great power is to abuse
it, to use it to excess. This most ixnverful of the free
nations must not permit itself to grow weary of the
processes of negotiation and adjustment that are fun-
damental to freedom. If it should turn impatiently
to coercion of other free nations, our brand of coercion,
so far as our friends are concerned, would be a mark
of the imperialist rather than of the leader.

What America is doing abroad in the way of military
and economic assistance is as much a part of our own
security program as our military efforts at home. We
hope to be able to maintain these overseas elements of
our security program as long as our enlightened self-
interest requires, even though we may, and probably
we always will, have various differences of opinion with
the nations receiving our aid.

On that same day, Admiral Arthur Radford,
Chairman of the Joint Chiefs of Staff, speaking
in general of America's leadership role in the
world, said in a speech at West Point :

Relationships between members of coalitions are
never simple, particularly in coalitions as large as ours
of the free world. The smaller nations expect, and are
entitled, to exercise their sovereignty and independence.
Our leadership therefore involves self-restraint If our
objectives are to be achieved by consent, rather than
through the pressure techniques imposed by the Soviet
on her satellites.

There is one commodity that is not on any list
but is more important tlian all others, and that is
the cement that binds the free world together-

Work of Seventeenth Session
of Economic and Social Council

Statement hy Henry Cabot Lodge, Jr.
U.S. Rep-resentative to the United Nations

D.S./U.N. press release 1914 dated May 4

The obtaining of full rights for Ireland and
Italy as well as for Portugal, Austria, and Fin-
land in the United Nations Economic Commis-
sion for Europe was an outstanding accomplish-
ment of the recently concluded session of the Eco-
nomic and Social Council. It was also most grati-
fying to have full rights in the Economic Com-
mission for Asia and the Far East obtained for
the Republic of Korea, Japan, Viet-Nam, Cam-
bodia, Laos, Ceylon, and Nepal.

We only wish these actions could be followed
by the Soviet Union abandoning its veto to the
admission of these countries and others to the
other bodies of the United Nations. These na-

May 31, 1954

tions would bring much strength to the United
Nations — which it badly needs.

It is gratifying that the Soviet-sponsored candi-
dates, Rumania, Bulgaria, Hungary, and Albania,
were kept out of the Economic Commission for
Europe and that the Communist Chinese, North
Korean, and Viet Minh regimes were also kept out
of the Economic Commission for Asia and the
Far East.

These successes were due, in large measure, to
the excellent work of Mr. Preston Hotchkis, the
new United States Representative in the Economic
and Social Council, who showed unusual skill and
vigor in presenting the United States viewpoint
and obtaining widespread support for it.

The United States also succeeded in eliminating
from consultative status the Women's Interna-
tional Democratic Federation, a Communist-domi-
nated organization which consistently had per-
verted the Council's work — especially by using it
as a propaganda platform for false attacks on the
United States for alleged atrocities and germ war-
fare in Korea.

We obtained a strong condemnation of forced
labor, which is so widely used in the Soviet world
for political and economic purposes, and we ar-
ranged for the United Nations to keep this dread-
ful practice under continued scrutiny. We re-
vealed for the first time the comprehensive pattern
of forced labor in Communist China.

We made sound and substantial progress in cre-
ating a more favorable atmosphere for the invest-
ment of American private capital in underdevel-
oped countries by securing the passage of a reso-
lution outlining realistic rules for capital export-
ing and importing countries.

We struck a blow for freedom of the press every-
where by obtaining approval for further United
Nations studies on restrictions on freedom of in-
formation, and especially on censorship.

Mr. Hotchkis and his staff did a remarkable job
in cutting through Soviet bloc opposition to chart
a course of sound and constructive development
which promotes the interest of the United States
and of our partners in the free world.

U.S. Contribution to U.N.
Technical Assistance Program

Statement hy Henry Cabot Lodge, Jr. _
V.S. Representative to the United Nations

U.S. /U.N. press release 1915 dated May 11

I am glad to turn over this check for $1,045,812,
which completes the United States contribution of
$12,767,145 to the United Nations Expanded Tech-
nical Assistance Program for 1953. It exemplifies
United States leadership in working through the

849

United Nations so that peoples in underdeveloped
countries will at last have a chance to develop a
standard of life in which starvation, undernour-
islunent, and disease are no longer the chief char-
acteristics and thus to develop the strength to
stand up for themselves.

United Nations technical assistance programs
thus strengthen the free world in the long run. In
such countries as Pakistan, Afghanistan, and
Libya, for example, United Nations projects in
land reclamation, irrigation, hydroelectric power,
and other kinds of economic development are
doing big things. Technical assistance carried on
by many nations together under the auspices of
the United Nations I'esults in a greater participa-
tion by other countries and a gi-eater good will for
the United States. The President's Commission
on Foreign Economic Policy, the Randall Com-
mission, urges, therefore, that the United Nations
program of technical assistance be strengthened
and expanded.

U.S. Delegations to
International Conferences

Caribbean Commission

The Department of .State announced on May 18 (press
release 261) that the following delegation will represent
the United States at the 18th meeting of the Carilibean
Commission, to be held at Belize, British Honduras,
May lS)-24 :

Vnited States Commissioners

Robinson Mcllvaine (Co-Chairman), Special Assistant to
Assistant Secretary for Public AiTairs, Department of
State

Bindley C. Cyrus, Attorney, Chicago, 111.

Jorge Luis Cordova Diaz, Attorney, San .luan, Puerto Kico

Dr. Roberto Francisco, I'hysiciaii. t^oudado, Puerto Rico

Advisers

Louis B. Mazzeo, American Consul, Belize, British

Honduras
Frances McReynolds Smith, Office of Dependent Area

Affairs, Department of State

Governing Body of International Labor Office

The Department of State announced on May 19 (press
release 2ti5) that the United States would be represented
at the 123th and 126th sessions of the Governing Body of
the International Labor Office at Geneva, Switzerland, by
the following :

Vnited States Oovernment Representative

J. Ernest Wilkins, Assistant Secretary of Labor, Depart-
ment of Labor

Vnited States Government Substitute Representative

Arnold Zempel, Executive Director, Office of International
Labor Affairs, Department of Labor

United States Government Adviser

Otis E. MuUiken, Officer in Charge, United Nations Social
Affairs, Office of United Nations Economic and Social
Affairs, Department of State

Meetings are to be held both before and after the
thirty -seventh session of the International Labor Confer-
ence, which is scheduled to convene on June 2, 1954. On
May 28 and 29 the Governing Body's 125th session will
review the reports of its committees, receive the report
of the Director General, and deal with certain other
pending matters.

The triennial election of the Governing Body will take
place at the thirty-se\enth session of the International
Labor Conference. The 126th session of the Governing
Body, wliieh will be held following the Conference, will be
concerned with the election of officers and other matters
relating to the organization of the new Governing Body.

The Governing Body, which meets three or four times
a year, is resjionsible for the general supervision of the
International Labor Organization (Ilo). It also selects
items for the a^'enda of the International Labor Confer-
ence, ciinsidors proposals relating to the Organization's
budget, and determines the time, place, and agenda of Ilo
conimittoe meetings and regional conferences.

Confirmation of Morehead Patterson

The Senate on May 10 confirmed Morehead
Patterson to be deputy U.S. representative on the
United Nations Disarmament Commission during
the meetings of the subcommittee scheduled to be-
gin at London May 13, 1954.

TREATY INFORMATION

Mutual Defense Assistance
Agreement With Pakistan

Press release 262 dated May 18

The U.S. Charge d'Affaires, John Kenneth Em-
mer.son, and the Foreign Minister of Pakistan, Sir
Mohammed Zafraila Khan, signed at Karachi on
May 19 a Mutual Defense Assistance Agreement'
uncler the provisions of which the Goveriunent of
the United States will provide military equipment
and training assistance to the Pakistan Armed
Forces.

The agreement follows a request by the Gov-
ernment of Pakistan for military assistance and
a determination by President Eisenhower that
Pakistan is eligible for such grant aid under the
provisions of the Mutual Security Act of 1951."

* For text of agreement, see press release 262-A dated
May 19.

' Bulletin of Mar. 15, 1954, p. 401.

850

Department of Sfafe Bulletin

This agreement, similar to others concluded
with countries already receiving U.S. military as-
sistance, contains the customary provision for a
U.S. Military Advisory Group, plus assurances on
the part of the recipient country that it will not
use such aid for aggressive purposes.

Pakistan's resolve to play an important part in
the collective defense of the free world has been
clearly demonstrated by its recent Friendship Pact
with Turkey, in which the two countries liave
agreed to study the methods of achieving closer
collaboration in the political, economic, and cul-
tural spheres, including means designed toward
strengthening peace and security in the j\Iiddle
East.

The Government of tlie United States and the
Government of Pakistan have by an exchange of
notes set forth their inutual understanding that
the provisions of tlie Mutual Defense Assistance
Agreement signed by the Governments of the
United States and Pakistan do not establish a
military alliance between the two Governments
nor do tliey involve any obligation on the part of
Pakistan to provide military bases for the use of
the United States.

Military Assistance Agreement
With Honduras

Press release 269 dated May 21

The Departments of State and Defense an-
nounce the signing, in Tegucigalpa on May 20, of
a bilateral military-assistance agi'eement between
the United States and Honduras.

This agreement is consistent with, and conforms
to, inter-American instruments already in effect,
such as the Inter-American Treaty of Reciprocal
Assistance (the Rio Treaty), the resolution on
Inter- American Military Cooperation approved at
the Washington Meeting of Foreign Ministers of
1951, and the continuous planning of the Inter-
American Defense Board.

The agreement is tlie tenth of its kind to be
signed between the United States and one of the
other American Republics. Similar agreements,
involving the provision of military grant aid by
the United States to jn-omote the defense of the
Western Hemisphere, have been signed with Ec-
uador, Peru, Cuba, Brazil, Chile, Colombia,
Uruguay, the Dominican Republic, and Nicaragua.

Tliese agreements were initiated under the pro-
gram of military grant aid for Latin America,
authorized in the Mutual Security Act of 1951.
They illustrate the spirit of cooperation prevailing
among the American Republics which makes it
possible for them to concentrate, through self-help
and mutual aid, upon increasing their ability to
contribute to the collective defense of the Westeru
Hemisphere.

May 37, 7954

Proposed Extension of Tax
Convention With Netherlands

Press release 273 dated May 22

The Government of the Netherlands has pro-
posed to the U.S. Government that the operation
of the income tax convention of 1948 between the
two countries be extended to the Netherlands
Antilles.

The convention between the United States and
the Netherlands for the avoidance of double taxa-
tion and the prevention of fiscal evasion with re-
spect to taxes on income and certain other taxes
was signed at Washington on April 29, 1948, and
was brought into force by the exchange of instru-
ments of ratification on December 1, 1948. The
U.S. Senate had previously given its advice and
consent to ratification, subject to certain reserva-
tions, the texts of which are set forth in the Presi-
dent's proclamation of the convention (Treaties
and Other International Acts Series 1855; 62
Stat., pt. 2, 1757).

Article XXVII of the convention contains pro-
visions relating to the procedure whereby the ap-
plication of the convention may be extended, in
whole or in part, to overseas areas under the juris-
diction of eitlier government. Pui-suant to those
provisions, the Government of the Netherlands
has given written notification of the desire of the
Government of the Netherlands Antilles that the
operation of the convention be extended thereto.

Before the proposed extension can be accepted
by this Government, in accordance witli the pro-
cedures stipulated in Article XXVII (2) of the
convention, it will be necessary to communicate the
Netherlands proposal to the U.S. Senate for its
approval.

The Department of the Treasui-y would welcome
such comments and suggestions as interested per-
sons may wish to make in regard to the proposed
extension. Such conmients and suggestions should
be submitted to the Office of the Secretary of the
Treasury, if possible by June 8.

Current Actions

MULTILATERAL
Commodities — Wheat

Agreement revising and renewing the International Wheat
Agreement of 1949 (TIAS 1957) . Dated at Washington
April 13, 1953. TIAS 2799.

Acceptance deposited: Honduras, April 21, 1954.

Accession deposited: Yugoslavia, April 21, 1954.

Narcotics

Protocol for limiting and regulating the cultivation of the
poppy plant, the production of, international and whole-

851

sale trade in, and use of opium.' Dated at New York
June 23, 1953.
Ratifications deposited: Panama, April 13, 1954; France,
April 21, 1954.

Peace Treaties

Treaty of peace with Japan. Signed at San Francisco
September S, 1951. Entered into force September 28,
1952. TIAS 2490.

Ratification deposited: Chile, April 28, 1954.

Agreement for the settlement of disputes arising under
Article 15 (a) of the treaty of peace with Japan. Opened
for signature at Washington June 12, 1952. TIAS 2550.

Entered into force for Chile, April 28, 1954.

South Pacific Commission

Agreement relating to the frequency of sessions of the
South Pacific Commission. Signed at Canberra April
5, 1954. Enters into force July 1, 1954.

Signatures: Australia, France, Netherlands^
New Zealand, United Kingdom, United States

Trade and Commerce

Third protocol ' of rectifications and modifications to texts
of the schedules to the General Agreement on Tariffs
and Trade (TIAS 1700). Done at Geneva October 24,
1953.

Signature: Haiti, May 7, 1954.

BILATERAL

Ireland

Consular convention. Signed at Dublin May 1, 1950.
Ratifications exchanged: May 13, 1954, at Washington.

Enters into force June 12, 1954.
Supplementary protocol to the consular convention of May

1, 1950. Signed at Dublin March 3, 1952.
Ratifications exchanged: May 13, 1954, at Washington.

Enters into force June 12, 1954.

Consular Offices in Mexico
To Be Reorganized

Press release 271 dated May 21

U.S. consular offices in ]\Iexico will be reorgan-
ized on July 1, 1954, to improve facilities in those
areas where demand for consular services is
heaviest and eliminate them in places where it is
not sufficient to justify their maintenance. This is
a further step in the program begun in 1953, under
which improved service and speed have been pro-
vided through concentration of immigration visa
work at certain offices strategically located
throughout Mexico.

' Not in force.

' Signed subject to approval.

852

The present move will provide needed addi-
tional personnel, higher efficiency, and improved
service at the consular offices in Mexico City,
Ciudad Juarez, Tijuana, Guadalajara, and Mata-
moros. Offices at Mexicali, Nogales, Piedras
Negras, Nuevo Laredo, Tampico, Monterrey,
Veracruz, and Merida are already adequately
staffed and will remain in their present status,
while those at Reynosa, Chihuahua, San Luis
Potosi, and Mazatlan will be closed.

Greatly improved transportation and communi-
cations facilities throughout Mexico in recent
years have eliminated the need for U.S. consular
representatives to be stationed at every city of
importance and will permit continuation of the
close cultural and commercial ties existing between
the peojile of the United States and those of the
cities where offices are being closed.

Because of the demand for visas from Mexican
visitors to the United States and the U.S. desire
to assist these travelers in every way, no border
consulates, with the exception of Reynosa, are
being closed. Residents of the Reynosa area
traveling east will be able to obtain visas at Mata-
moros, while those traveling west can get them
at Nuevo Laredo. Border crossing cards continue
to be available from U.S. immigration officers at
all border points for Mexican residents desiring
to enter the United States for brief visits in the
frontier communities. Mexican residents of the
interior will continue to be able to obtain visas and
other services at Merida, Veracruz, Tampico,
Monterrey, Guadalajara, and Mexico City.

New Foreign Relations
Volume issued

Press release 2^ dated May 6

Foreign Relation.'^ of the United Sfatex, 1936,
Volume //, Europe, released on May 15 by the De-
partment of State, contains the diplomatic record
of the United States with respect to the individual
countries of continental Europe during the year
1936. Subjects of a nniltilateral or general nature
are treated in Volume I. Relations with the Soviet
Union for 1936 are omitted from this volume, hav-
ing been included in Foreign Relatione of the
United States, The Soviet Union, 1933-1939.

Papers printed in Volume II of special political
interest are for the most part those dealing with
Nazi control in Germany and with the beginning
and early stages of the Spanish Civil War. With
most countries the diplomatic relations of the
United States concerned matters of commerce, the
liberal trade policies urged by Secretary of State
Cordell Hull finding little acceptance, especially
with the totalitarian governments of Gennany
and Italy. Reciprocal trade agreements were

Department of Sfafe Bulletin

signed, however, with Finland, France, and
Switzerland.

Reports on developments in Germany during
1936 repeat the themes of earlier years : intensifica-
tion of Nazi political control, Nazification of edu-
cation, resistance to attemj^ted Nazi control of the
churches, persecution of the Jews. Of special
significance is the report of Ambassador William
E. Dodd on September 18 showing how the Nazis
perverted public opinion to the extent that Hitler
could count on the support of the people in any
venture he might undertake (pp. liO-lSS).

The correspondence in this volume regarding
the Spanish Civil War is divided into two sections,
one on the international political aspects of the
war and the other on the protection of the lives
and property of Americans and other nationals.
The record here presented shows no deviation from
the publicly announced U.S. policy of strict
neutrality. The Department on August 7 re-
minded all its officers in Spain to maintain a com-
pletely impartial attitude and intimated that all
Americans should patriotically observe this policj'
(p. 471). Airplane manufacturers were advised
that sale of planes to the Spanish Government
would violate the spirit of this neutrality policy
and for the most part they complied, but in De-
cember the Department was obliged to grant li-
censes for such sales as it had no legal authority
to refuse (pp. 474-476; 618-620). The policy of
non-interference was reiterated repeatedly as the
Civil War continued. (See pp. 498^99, 519-520,
527, 536-538, 623-624.)

Volume II is the fourth to be published in the
Foreign Relations series for 1936. Volumes I,
III, and IV have already been published and
Volume V will be released within a few weeks.
Volume II was compiled in the Historical Divi-
sion by Matilda F. Axton, N. O. Sappington, and
Rogers P. Churchill, under the direction of E. R.
Perkins, Editor of Foreign ReJations. Technical
editing was in charge of Elizabeth A. Vary, Chief
of the Foreign Relations Editing Branch of the
Division of Publications. Copies of this volume
(XCV, pp. 853) may be purchased from the Super-
intendent of Documents, U. S. Government Print-
ing Office, Washington 25, D. C. for $4.25 each.

Recent Releases

For sale hy the Superintendent of Documents, V. 8. Qov-
emment Printing Office, Washington 25, D. C. Address
requests direct to the Superintendent ojf Documents, ex-
cept in the case of free publications, uhich may be obtained
from the Department of State.

"Not One of Us Alone" — A Mutual Security Program.
John Foster Dulles, Secretary of State. Pub. 5433.
General Foreign Policy Series 89. 18 pp. 10«(.

May 37, 1954

A statement by John Foster Dulles, Secretary of State,
before the House Foreign Affairs Committee, April 5, 19,'54.
This booklet points out that the mutual security program
is designed to promote the security and welfare of the
United States.

Friendship, Commerce and Navigation. TIAS 2863.
Pub. 5312. 72 pp. 25<>.

Treaty and Protocol between the United States and
Japan— Signed at Tokyo Apr. 2, 1953.

General Agreement on Tariffs and Trade — Torquay Pro-
tocol and Schedules, Torquay, April 21, 1951. Volume I
and Volume II. TIAS 2420. Pub. 4802. 1,967 pp. Vol. I,
$3.50 ; Vol. II, $2.25.

Torquay Protocol and Torquay Schedules of Tariff Con-
cession.?— Dated at Torquay April 21, 1951 ; Declaration
on Continued Application of Schedules — Dated at Torquay
April 21, 1951; Final Act— Dated at Torquay April 21,
1951.

Agriculture — Cooperative Program in Bolivia. TIAS
2483. Pub. 5345. 9 pp. 10«t.

Agreement between the United States and Bolivia, super-
seding Jlemorandum of Understanding of April 6, 1943,
as modified. Exchange of notes — Signed at La Paz June
13 and 18, 1952, with agreements modifying Memorandum
of Understanding of April 6, 1943. Exchange of notes —
Signed at La Paz May 17 and June 4, 1948 — Signed at
La Paz June 16, 1952.

Passport Visa Fees — Waiver to Aircraft Crews. TIAS
2650. Pub. 5347. 3 pp. 5<}.

Agreement between the United States and Lsrael. Ex-
change of notes — Signed at Tel Aviv March 27 and June 1,
1951.

General Agreement on Tariffs and Trade — Protocol modi-
fying Part I and Article XXIX of the Agreement of Octo-
ber 30, 1947. TIAS 2744. Pub. 5132. 14 pp. 100.

Protocol modifying Part I and Article XXIX of the agree-
ment of October 30, 1947, between the United States and
Other Governments — Dated at Geneva September 14, 1948.

General Agreement on Tariffs and Trade — First Protocol
of Modifications to the Agreement of October 30, 1947.
TIAS 2745. Pub. 5133. 18 pp. 10(f

First Protocol of Modifications to the .\greement of Octo-
ber 30, 1947, between the United States and Other
Governments — Dated at Annecy August 13, 1949.

General Agreement on Tariffs and Trade — Protocol re-
placing Schedule VI (Ceylon) of the Agreement of Octo-
ber 30, 1947. TIAS 2746. Pub. 5134. 17 pp. 10^.

Protocol replacing Schedule VI (Ceylon) of the agreement
of October 30, 1947 between the United States and Other
Governments — Dated at Annecy August 13, 1949.

General Agreement on Tariffs and Trade — Fourth Pro-
tocol of Rectifications to the Agreement of October 30,
1947. TIAS 2747. Pub. 5135. 58 pp. 20«;.

Fourth Protocol of Rectifications to the Agreement of
October 30, 1947, between the United States and Other
Governments — Signed at Geneva April 3, 1950.

Technical Cooperation. TIAS 2772. Pub. 5165. 17 pp.

Agreement between the United States and Peru — Signed at
Lima January 25, 1951 and amending agreements effected
by exchanges of notes — Signed at Lima January 7, 1952;
February 21 and 28, 1952 ; and January 15, 1953."

853

Mutual Defense Assistance. TIAS 2777. Pvib. 5175.

12 pp. io«;.

Agreement between the United States of America and the
Dominican Republic— Signed at Washington Marcli (i,
1953.

Mutual Defense Assistance. TIAS 2778. Pub. 5176.
12 pp. 10«».

Agreement between the Unite<l States and Uruguay —
Signed at Montevideo June 30, 1952 with Related Note —
Dated at Montevideo September 10, 1952.

Aviation— Flight Notifications of Private Aircraft. TIAS
2779. Pub. 5177. 15 pp. UH-

Agreement between the United State.< and Cuba. Ex-
change of notes — Signed at Habana January 19 and Febru-
ary 26, 1953.

Mutual Defense Assistance. TIAS 2787. Pub. 5205.
5 pp. 5t.

Agreement between the United States and Ethiopia —
Signed at Washington May 22, 1953.

Economic Cooperation. TIAS 2790. Pub. 5217. 3 pp.

5<e.

Agreement between the United States and Belgium,
amending agreement of July 2, 1948, as amended. Ex-
change of notes — Signed at Brussels December 11, 1952,
and March 5, 1953.

Economic Cooperation. TIAS 2791. Pub. 5218. 3 pp. 5«;.

Agreement between the Unite<i States and Yugoslavia,
amending agreements of April 17, 1951, and January 8,
1952. Exchange of notes- Signed at Belgrade February
25 and March 10, 19.53.

Economic Cooperation. TIAS 2801. Pub. 5219. 5 pp.

5^.

Agreement l)etween the United States and Portugal,
amending agreement of September 28, 1948, as amended.
Exchange of notes — Signed at Lisbon March 9 and 18,
1953.

United States Naval Mission to Haiti. TIAS 2808. Pub
5214. 2 pp. 50.

Agreement between the United States and Haiti, extend-
ing agreement of April 14, 1949. Exchange of notes —
Signed at Washington January 28 and March 2, 19.">.'?.

United States Educational Foundation in Thailand. TIAS
2809. Pub. 5220. 2 pp. 50.

Agreement between the United States and Thailand,
amending agreement of July 1. 19.j0. Exchange of notes —
Dated at Bangkok January 20 and April 7, W5S.

Mutual Defense Assistance. TIAS 2849. Pub. 5291. 19
pp. 150.

Agreement, with Tax Relief .\nnex and Interpretative
Note, between the United States and Spain — Signed at
Madrid September 26, 19.53.

Defense— Use of Military Facilities in Spain. TIAS 2850.
Pub. 5292. 8 pp. 100.

Agreement betwen the United States and Spain — Signed
at Madrid September 26, 1953.

Double Taxation— Taxes on Gifts. TIAS 2879. Pub.
5350. 10 pp. 100.

Convention between the United States and Australia —
Signed at Washington May 14, 1953.

Double Taxation — Taxes on Estates of Deceased Persons.
TIAS 2901. 34 pp. 150.

Convention and Protocol between the United States and
Greece. Convention — Signed at Athens February 20,
1950 ; Protocol — Signed at Athens July 18, 1953 and Pro-
tocol of E.xchange of Ratitications — Signed at Athens
December 30, 1953.

Current U.N. Documents:
A Selected Bibliography '

Trusteeship Council

Petitions Concerning the Trust Territory of the Cameroons
Under French Administration. Draft Report of the
Standing Conimittoe on Petitions. T/C.2/L.(i0, January
26, 1954. 30 pp. mimeo.

Examination of Annual Reiwrts. Observations of the
United Nations Educational. Scientific and Cultural Or-
ganization on the Annual Reports for 1952 on the Trust
Territories of Tanganyika. Ruanda-Urundi. the Cam-
eroons Under French Administration, Togoland Under
British Administration, Togoland Under French Ad-
ministration. Letter dated 6 January 1954 from the
Director-General of the United Nations Educational,
SeientiJie iind Cultural Organization to the Secretary-
General. T/1091. January 21, 1954. 54 pp. mimeo.

Conditions in the Trust Territory of the Cameroons Under
British Administration. Working pajier prejiared by the
Secretariat. T/L.404. January 26, 19.54. 39 pp. mimeo.

Conditions in the Trust Territorj' of the Cameroons Under
British Administration. Working paper prepared by the
Secretariat. Addendum. T/X(404/Add.l, February 17,
1954. 10 pp. mimeo.

Conditions in the Trust Territory of the Camerons Under
French Administration. Working jiapcr prepared by the
Secr(>tariat. T/L.400. Jantiary 28, 1954. 44 pp. mimeo.

Conditions in the Tru.st Territory ol" the Cameroons
Under French Administration. Addendum. Working
paper prepared by the Secretariat. T/L.406/Add.2,
March 8, 19.54. 6 pp. mimeo.

Conditions in the Trust Territory of Togoland Under
Hriti.sh Administration. Working paper prepared by
tlie Secretariat. T/L.407, February 8, 1954. 35 pp.
mimeo.

Conditions in the Trust Territory of Togoland Under
British Administration. Working paper prepared by
the Secretariat. Addendum. T/L.407/Add.l, March 2,
19.54. 8 pp. mimeo.

Conditions in the Trust Territory of Togoland Under
French Administration. Working paper prepared by
the Secretariat. T/L.409, February 15. 19.54. 31 pp.
mimeo.

Conditions in the Trust Territory of the Cameroons Under
British Administration. Report of the Drafting Com-
mittee. T/L.41S, February 17, 1954. 7 pp. mimeo.

Conditions in the Trust Territory of Tanganyika. Work-
ing paper prepared by the Secretariat. T/Ii.419, March
1, 1954. 44 pp. mimeo.

Conditions in the Trust Territory of Ruanda-Urundi.
Working paper prepared by the Secretariat. T/L.420,
March 2, 19.54. 31 pp. mimeo.

Conditions in the Trust Territory of Togoland Under
British Administration. Report of the Drafting Com-
mittee. T/L.421, March 2, 1954. 7 pp. mimeo.

' Printe<l materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New York 27, N. T. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.

854

Department of State Bulletin

May 31, 1954

Index

Vol. XXX, No. 779

Afghanistan. Export-Import Bank Loan to Afghanistan . S36

American Principles

The Influence of Business on American Freedom (Eisen-
hower, DuUes) 837

The Soviet Power System — the Challenge to Our Security

(Merchant) 819

American Republics. Organizing Security in the Americas

(Dreier) 830

Austria. Soviet Charges Against Austria (Dulles) . . . 824

Congress, The

Congressional Consideration of Economic Policy Proposals

(Eisenhower, Percy) 841

Current Legislation 825

Economic Affairs

Advancing U.S. Economic Policies Through the United

Nations (Key) 826

Congressional Consideration of Economic Policy Proposals

(Eisenhower, Percy) 841

East-West Trade Trends (Stassen) 843

Export-Import Bank Loan to Afghanistan 836

Proposed Extension of Tax Convention With Netherlands . 851

Foreign Operations Administration. East-West Trade

Trends (Stassen) 843

Foreign Service. Consular Offices in Mexico To Be Reor-
ganized 852

France. Tribute to Defenders of Dien-Bien-Phu Acknowl-
edged (Coty, Dai) 835

Guatemala. Arms Shipment to Guatemala From Soviet-
Controlled Area 835

Honduras. Military Assistance Agreement With Hon-
duras 851

Indochina. Tribute to Defenders of Dien-Bien-Phu Ac-
knowledged (Coty, Dai) 835

International Organizations and Meetings. U.S. Delegations

to International Conferences 850

Korea. Governors To Observe Korean Reconstruction 836

Mexico. Consular Offices in Mexico To Be Reorganized 852

Military Affairs

Arms Shipment to Guatemala Prom Soviet-Controlled

Area 835

Governors To Observe Korean Reconstruction .... 836

Tribute to Defenders of Dlen-Bien-Phu Acknowledged

(Coty, Dai) 835

Mutual Security

Governors To Ob.serve Korean Reconstruction .... 836

Mutual Defen.se Assistance Agreement With Pakistan . . 850

Netherlands. Proposed Extension of Tax Convention With

Netherlands 851

Pakistan. Mutual Defense Assistance Agreement With

Pakistan 850

Poland. U.S. Rejection of Polish Ship Seizure Charges . 824

Presidential Documents

Congressional Consideration of Economic Policy Pro-
posals 841

Import Duties on Scissors not To Be Increased (text of

letter) 840

President Asks Investigation of Tung Imports .... 839
Publications

Current U.N. Documents 854

New Foreign Relations Volume Issued 852

Recent Releases 853

Kefngees and Displaced Persons. East German Escapees

Increase in Number 825

Treaty Information

Current Treaty Actions 851

Military Assistance Agi-eement With Honduras .... 851

Mutual Defense Assistance Agreement With Pakistan . . 850

Proposed Extension of Tax Convention With Netherlands . 851
United Nations
Advancing U.S. Economic Policies Through the United

Nations (Key) 826

Confirmation. Patterson 850

Current U.N. Documents 854

U.S. Contribution to U.N. Technical Assistance Program

(Lodge) 849

Work of Seventeenth Session of Economic and Social

Council (Lodge) 849

U.S.S.R.

Arms Shipment to Guatemala From Soviet-Controlled

Area 835

Soviet Charges Against Austria (Dulles) 824

The Soviet Power System — the Challenge to Our Security

(Merchant) 819

Name Index

Coty, Ren6 835

Dai, Bao 835

Dreier, John C 830

Dulles, Secretary 824, 838

Eisenhower, President 837, 839, 840, 841

Key, David McK 826

Lodge, Henry Cabot, Jr 849

Merchant, Livingston T 819

Patterson, Morehead 850

Percy, Charles H 842

Stassen, Harold E 843

Check List of Department of State
Press Releases: May 17-23

Releases may be obtained from tbe News Division,
Department of State, Wasliington 25, D. C.

Press releases issued prior to May 17 which ap-
pear in this issue of the Bulletin are Nos. 234 of
May 6, 247 of May 12, 248 and 251 of May 14.

No. Date Subject

*259 .5/17 Haile Selassie's itinerary
260 5/17 Guatemalan arms shipment

Delegation to Caribbean Commission
Agreement with Pakistan signed
Text of alwve agreement
Korean participation in seminar
Bohan : Pan-Amtrican economy
Delegation to ILO
Soviet charges against Austria
Exchange of jjersons
Dulles : Remarks to C. E. D.
Agreement with Honduras
Interception of Polish ship
Consular offices in Mexico
Foreign Relations volume
Tax convention with Netherlands

* Not printed.

t Held for a later issue of the Bttlletin.

261

5/18

262

5/18

*262-

A 5/19

*263

5/19

t264

5/19

265

5/19

266

5/20

*267

5/20

268

5/20

269

5/21

270

5/21

271

5/21

t272

5/21

273

5/22

May 3J, J954

Foreign Relations of the United States . . .

the basic source of information on U.S. diplomatic history

1936, Volume II, Europe

the
Department

of
State

Papers printed in this volume of special political interest
are for the most part those dealing with Nazi control in Ger-
many and with the beginning and early stages of the Spanish
Civil War.

Reports on developments in Germany during 1936 repeat the
themes of earlier years : intensification of Nazi political control,
Nazification of education, resistance to attempted Nazi con-
trol of the churches, persecution of the Jews. Of special sig-
nificance is the report of Ambassador William E. Dodd on
September 18 as to means by which the Nazis perverted public
opinion to the extent that Hitler could count on the support
of the people in any venture he might undertake.

The correspondence in this volume regarding the Spanish
Civil War is divided into two sections, one on the international
political aspects of the war and the other on the protection
of the lives and property of Americans and other nationals.
The publicly announced U.S. policy of strict neutrality was
reiterated repeatedly as the Civil War continued.

Copies of this volume may be purchased from the Superin-
tendent of Documents, Government Printing Office, Washing-
ton 25, D. C, for $4.25 each.

Order Form

Please send me copies of Foreign Relations of the United

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y/ie' z/)eft<M^-'f^7ten/f/ AM/ t/ui/te/

June 7, 1954

THE GROWTH OF FREEDOM IN INDIA • by Am-

bassador George V. Allen 864

UNDERSTANDING INTER-AMERICAN ECONOMIC

PROBLEMS • by Merwin L. Bohan 875

ETHIOPIA'S ROLE IN WORLD AFFAIRS • by Haile

Selassie I, Emperor of Ethiopia .•.. 867

TECHNICAL COOPERATION AND THE AMERICAN

HERITAGE • by Harold E. Stassen 871

A REPORT ON EDUCATIONAL EXCHANGE UNDER

THE FULBRIGHT ACT IN 1953 889

THE UNITED STATES AND A DIVIDED CHINA •

Article by Alfred leSesne Jenkins 859

For index see inside back cover

Coston Public Library
Superintendent of Documents

JUL 16 1954

'Nt.. o» '

^e Qlefia'iitmeni: c/ c/taie

bulletin

Vol.. XXX, No. 780 • Publication 5491
JuTw 7, 19S4,

For sale by the Superintendent of Documents

U.S. Government Printing Office

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The printing of this publication has
been approved by the Director of the
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Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
OF State BtJLLETiN as the sovnce will be
appreciated.

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, 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
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
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.

The United States and a Divided CFiina

hy Alfred l-eSesne Jenkins

Until the Chinese mainland came under Com-
iminist domination in 1949, the United States
had enjoyed more than a century and a half of
friendship with the Chinese people, during which
our contacts with China- — commercial, cultural,
religious, and political — were extensive. Our
record in standing for the political independence
and territorial integrity of China is a well-known
one, and the Second World War found our two

i peoples comrades-in-arms against the imperialis-
tic power of that period which sought to destroy
us. The subsequent subjugation of the Chinese
mainland to the alien domination of yet another

: imperialism is not only a cause of deep regret
to us because it has severed our traditionally close

] relations with the vast majority of the Chinese

! people; it is also a cause of the gi^eatest concern
to us, in that a hostile and aggressive China, in
collusion with the Soviet Union and its European

i satellites, vastly enhances the threat of Commu-
nist imperialism to our own peace and security
and to that of the entire free world.

The oft-confessed objective of Communist im-
perialism is nothing less than world domination.
The Soviet leaders must be well aware that this
can never be accomplished with any semblance

, of legitimacy. Not one national group of the
800 million souls now under Communist rule has

1 ever voted itself into communism. Tlie free world
has shown a perverse disinclination to be "liber-

! ated" from its free institutions and way of life.
Communist successes for the past 37 years have
been the result of following Lenin's exhortation

i to resort to every form of ruses, dodges, tricks,

i cunning, unlawful methods, concealments and

^veilings of the truth." Communist tactics have
included, in various combinations, infiltration,

; subversion and sabotage, "united fronts" with
other parties while control of army and police is
secured, partition of countries which cannot at

i the time be won in toto, and, when the time seems

{ripe, coups d'etat or civil war. Communist con-

j quest has by no means, therefore, been confined
to bald military aggression, although this more

S conventional method of imperialistic aggrandize-
ment has not been spurned when the odds ap-

June 7, 1954

peared to be overwhelmingly in the Communists'
favor.

This pattern of Communist conquest has be-
come sickeningly familiar since World War II.
Its methodology, insidious, resilient, and multi-
form as it is, is not easy to combat, but it can be
done. The rapid growth of Communist parties
in Western Europe immediately after the war
has at least been stopped in its tracks. Western
Europe, alarmed and awakened chiefly by the fate
of Poland and Czechoslovakia, demonstrated its
determination to regain its strength promptly and
to remain vigilant. Communist imperialism,
thwarted in the West by European acceptance of
the Marshall plan, the creation of Nato, and the
prospect of a European Defense Community, and
in the South by the failure of its designs against
Greece, Turkey, and Iran, turned its attention
to the East, where the first of the three great
Asian prizes had all but dropped into its lap.

What the Communists Want in Asia

Both the world Communist conspiracy and So-
viet imperialism, to the degree that the two may
be distinguished, want of Asia three things. First,
communism needs the manpower of China, which
constitutes one-fourth of the world's total popu-
lation. Tliis it now has, except for the Free
Chinese on Formosa. Second, it needs the indus-
trial capacity of Japan. This was the ultimate
goal in its ill-fated Korean adventure. Third, it
needs the surplus food and rich mineral resources
of Southeast Asia. Presently threatened Indo-
china is the gateway to this wealth and contains
a good portion of it. This characterization of the
three great Asian prizes eyed by Communist im-
perialism is something of an oversimplification, of
course. China, for instance, brings to the Com-
munist fold a good deal more than just man-
power, valuable as that is and freely as it was
squandered in Korea. The important thing to
i-(MiH>mber is that tlie Communist rulers have every
infeiilion of using their first great Asian prize
as the primary means of attaining the second and
tiiird. And the Chinese Conmuinists, for their

859

part, appear to be close and willing accomplices
in this plot, expecting to gain much for themselves
as junior partners in the Sino-Soviet alliance. It
is also important to remember that the Chinese
Communists are thoroughly schooled in the same
tradition as their Soviet mentors. The Chinese
have proved to be apt pupils and have even added
a few twists of their own to the Soviet legacy,
both in their internal and external conduct. Com-
munist China's imperialistic adventures in both
Korea and in Indochina, although not the same in
form, have both followed orthodox Communist
patterns.

The best hope of communism is in a situation
where it can deal separately and individually with
its intended victims. Its spread was halted in
Europe only when this became impossible. The
Communist attempt to swallow the whole of Korea
failed because of united action of a kind unique
in history, but Korea remains divided. The Com-
munists so far have been able to concentrate their
attention in tui'n upon Indochina without the
deterrent of that collective security which must
yet be devised for Free Asia if it is not to be
enslaved in the Communist fashion, piecemeal.

Issues of incalculable import are in the balance
in Asia at this time. I have dwelt initially upon
aspects somewhat broader than our immediate
subject in order to set the perspective for the role
Communist China has been allotted to play, and
indeed is playing, in the world Communist pro-
gram of conquest. It has been given primary
responsibility for the communization of the rest of
Asia but has recognized the leadership of the So-
viet Union for the whole of the Communist camp.

Since April 20 our I'epresentatives have been in
Geneva to discuss the two most serious sources of
tension in the Far East, the danger spots of Korea
and Indochina. In both instances it is primarily
Communist China, with the full support of the
Soviet Union, which has thus endangered the peace
of the world. We are participating in the Con-
ference at Geneva with the sincere purpose of
seeking a settlement of these two gi-eat Asian
])roblems. We still hope that at least some prog-
ress toward reducing tensions in the Far East
may be possible. We are, however, keenly aware
of the Communists' record of bad faith. We are
especially mindful of the Chinese Communists'
wonted use of the conference table as a means
of waging war by carefiilly timed cease-fire, a
tactic used by them to great advantage in the
Chinese civil war. During the cease-fire in Korea,
by means of a deliberate and systematic circum-
vention of the Armistice Agi'eement, the Com-
nuniists have engaged in a significant military
build-up in North Korea. It would be fatuous
to agree at Geneva to a cease-fire in Indochina
without adequate safeguards against this all-too-
familiar Communist tactic.

Whatever the Communist intent with respect to

Korean and Indochinese settlements, they have
stridently demanded that the convicted aggressor
whose acts have chiefly made the conference neces-
sary be accorded international acceptance and so-
called big-power status in this conference. We
and our allies refused to yield to these demands
and to convene a so-called five-power conference
to deal with world problems, for which the Com-
munists were so anxious. Communist China is
necessarily at the conference, since it is deeply
involved in both questions to be considered. Com-
munist China obviously wants to achieve, partly
by means of this conference itself, general dip-
lomatic recognition by the fcimily of nations, a
seat in the United Nations, and a relaxation of
trade restrictions.

Nature of Chinese Communist Regime

Wliat is the nature of this regime which un-
ashamedly demands international acceptance at
a conference called to deal urgently with problems
chiefly of that regime's own creation? It came
to power by force of arms and with full moral, and
limited material, support of an alien power which
even at tliat time was bound by a treatv of friend-
ship and alliance with the Cliinese Government
under President Cliiang Kai-shek. It came to
power by the familiar "united front" tactics, dis-
carded as soon as police state controls made it
possible. We do not believe that it represents the
will of the people it governs. It has acted on no
recognizable standards of international conduct.
It has repeatedly expressed contempt for the ])ur-
poses and principles of the United Nations and
still stands convicted by that body as an aggressor
in Korea. Its aggressive record in Koi'ca, Indo-
china, and Tibet and its relentless program of in-
filtration and subversion in other Asian countries
make it a serious threat to all the free peoples of
Asia.

By stepping up the fighting in Indochina in an
obvious attempt to influence the outcome of the
Geneva Conference the Communists have shown
the same callous disregard for the extravagant
expenditure of Viet Minh lives as tliey showed for
Chinese lives in Korea. The Chinese Communist
regime disregarded tlie most elemental rules of
prisoner-of-war treatment in Korea, committing
unspeakable atrocities against United Nations
troops. It has carried on a methodical "Hate
America" campaign among its own people and
has subjected American and other foreign nation-
als to all manner of indignity, has confiscated
foreign property without compensation, and has
often made it impossible for foreign business
establishments either to cari-y on or to close down.
It still holds ;>2 American civilians in prison, in-
communicado, under intolerable physical con-
ditions, without trial and without even a state-
ment of charges. It has developed "brain

860

Department of State Bulletin

washing" to a fine science to secure useful, if
false, confessions from prisoners and has even
directed it against its own nationals to secure in
recalcitrant cases the complete obedience and
ronformity which must characterize the "new
socialist man." The regime has liquidated mil-
lions of its own citizens, by means ranging from
outright murder to induced suicide, in its attacks
on private businessmen and in the spurious land
reform program which brought it early support
from the unsuspecting peasants but which is now,
as control of the land is taken over by the state,
liringing it the mute and impotent hostility of the
dispossessed farmers. There is not only no free-
diim of speech, press, or a&sembly; there is not
even freedom of silence, since all must be vocal
ill their support of Communist policies.

The regime has set about painstakingly to
change the whole fabric of traditional Chinese
society. Through endless study groups it has
attempted to reach every citizen, in the attempt
to make his thoughts and acts conform to the sup-
posed needs of the Party. These study groups
involve lectures by Communist cadres, the reading
of prescribed texts, and "discussion." The lec-
tures invariably contain the "right" answers to the
problem at hand, but hours and often even weeks
are then spent in endless discussions which are
preordained to end up right where they started:
with the "right" answers. No segment of the
population is excluded from the Communist pro-
i:ium of remolding the individual. The soldier is
given special attention, in this as in other matters.
I have talked in Chinese with country boys in the
Chinese Communist Army who could scarcely
phrase a compound sentence on most subjects but
who could hold forth by the hour with astounding
facility on the subjects of dialectical materialism
and the history of Western imperialism, Commu-
nist version.

Even the so-called educational institutions do
not escape the heavy imprint of the political re-
quirements regarded as the current specific for
the ailments of the Communist state. Academic
research, like religion, the economy, and the pat-
terns of social behavior, is made the handmaiden
of the Communist brand of politics. The family
unit is a special target of the Communists. Chil-
dren are trained to spy and report on their
parents, and they not infrequently have de-
nounced their parents in instances where they
knew it meant the death of their parents.
Finally, the regime, in order to gain sorely needed
foreign exchange, has stooped to trade in narcotics
and to blackmail of overseas Chinese whose rela-
tives on the mainland are at its mercy.

In short, the Mao Tse-tung regime, whose
cause is pled at Geneva by Chou En-lai, internally
is a police state of the worst order and externally
is a convicted aggi'essor, a continuing threat to
its neighbors, and apparently an enemy of all na-

tions who do not choose to identify themselves
completely with the camp of "peace-loving nations
under the leadership of the Soviet Union." It
is the Communists who insist that there is no
third, middle, or neutral road. All who are not
for them are considered to be against them. At
least there can be no doubt as to where Communist
China stands, and there should be no room left
for wishful thinking on the subject. Mao Tse-
tung, upon the inception of his regime on October
1, 1949, jiroclaimed his so-called "lean to one side
policy," that is, toward the Soviet side. This bids
fair to be the understatement of our time. Mao
was less reserved when, upon the death of Stalin,
he sent a telegram to Moscow declaring that Red
China would stand by the Soviet Union "defi-
nitely, forever and with maximum resoluteness."
This smacks more of prostration than of leaning.

Communist China, it is true, is not in the same
impotent situation in the Communist orbit as are
the Eastern European satellites. The very size,
geographical location, and importance of China
assure it a special status. We cannot read into
this situation any significant element of divisive-
ness, however. The very fact of special status
doubtless makes Communist China more comfort-
able in the Soviet camp than it would otherwise
be. In time there may well be increasing frictions
between the Chinese and Russians. Russia has
traditionally had aggressive designs against
China. Difficulties may well mount in time over
Soviet influence in China's Northeast and North-
west, over control of the Communist movement
in the rest of Asia, over Chinese disappointment
at the limitations of Soviet aid commitments, and
perhaps over alleged ideological heresies. For
the foreseeable future, however, the affinities
which bind the two powers together are likely to
be much stronger than the divisive frictions.

Such is the nature of the regime which appears
at Geneva to be making a bid for general recogni-
tion, for entry into the United Nations, and for
freer trade with the West. The United States, for
its part, cannot recognize this regime. We will
continue vigorously to oppose its admission to any
United Nations body as the representative of the
Chinese people. And we cannot favor a relaxa-
tion of trade controls justly imposed against a
convicted aggressor which has given no indication
of having altered its aggr-essive course but on the
contrary remains a constant threat to its neighbors
and desires to build up its industrial base to sup-
port a war machine with the avowed purpose of
"liberating" the rest of the world. AVe believe
that to do so would, on the one hand, further con-
firm the Chinese Communists in their dedication
to their present loyalties and courses of action and,
on the other, tend to produce disillusionment and
discouragement on the part of other Asian nations
anxious to maintain their freedom and in many
instances their newly won independence.

June 7, J 954

861

Continuing Recognition of Free China

There is another reason why we cannot accept
the Peiping regime as representative of the
Chinese people. We have no intention of turning
our backs on the Republic of China on Formosa
or of forsaking the 10 million Free Chinese on
that Island to a fate of Communist tyranny. We
believe that the Kepublic of China is far more
representative of the will of the Chinese people
than is the regime on the mainland. It continues
to represent China in the United Nations ably,
responsibly, and with dignity.

It is Iiighly important that at this juncture,
when attention is focused upon the Chinese Com-
munist regime, primarily because of its outra-
geous conduct, we not forget the real and potential
importance of the cause of Free China. There
is abundant precedent for the free nations' con-
tinued recognition even of governments in exile,
for considerations dictated by reason and ])rin-
ciple, when those governments I'etain no terri-
torial control or military potential. Free China,
however, is a going and growing concern, which is
developing in increasingly favorable contrast to
the conditions of tyranny and oppression imposed
on the mainland by its would-be successor regime.
That it has yet failed fully to achieve, by its own
ready admission, that standard of democratic ex-
cellence by which it is often judged is hardly sur-
prising, considering the facts that it has had only 6
years of constitutional government, is in a period
of acute national emergency, and with extremely
limited national resources is called upon to support
a disi^roportionately large military establishment
and maintain the morale and loyalty of civil
servants on a below-subsistence level of pay.
Even with outside aid this is a large order. The
surprising thing is that the Island is as stable as
it is, that the economy, with its several weaknesses,
is as strong as it is, that its military potential
grows as it does, that morale both among the mili-
tary and the civilian population is as high as it is,
that the Island is as free from subversion as it
is, and that in these troublous times there is as
much freedom of the press, speech, and person
as there is. I have lived in both Communist China
and Free China, and I am unable to view the
appellation "Free China" as any misnomer. It is
deserving of free world support.

The United States will continue its military,
economic, and political support of the Govern-
ment of the Kepublic of China, and we will con-
tinue to support it as the representative of China
in the United Nations. The Chinese Communists,
in their extravagant propaganda, continue to
speak of our "forceful occupation" of Formosa.
This is preposterous, as all the world knows. Our
advisers and technicians are there at the express
invitation of the Government of China, to help it
maintain its economic and political stability and
to assist the Chinese to develop and maintain a
military establislmient capable of defending the

862

Island from Communist invasion and to make a
greater contribution as an important part of the
anti-Communist armed might in opposition to
Communist aggression and expansion in the
Pacific.

Such, in brief, is the problem and the promise
presented to us by a divided China at this hour
of grave crisis in Asian and world history. To
meet this hour at Geneva and elsewhere with the
degree of sober responsibility for which all men
who treasure freedom look, requires all the reso-
luteness, faith, wisdom, firmness, patience, and
understanding which we can summon. It would
be idle at this point to speculate upon the outcome
of the important conference now being held at
Geneva. The next few days may be decisive. But
there can be little doubt that the issues with which
we are concerned at Geneva provide another
severe test of the very principle of collective se-
curity on which may rest the fate of hundreds of
millions of Asians, and ultimately of us all.

• Mr. Jenkins, author of the above article, is
Officer in Charge of Political Affairs, Office of
Chinese Affairs. His article is ianed on an address
made before the Scarlet Key Ilo-twr Society of
Boston University, Boston, Mass., on May 5.

U. S. Policy on Participation
in Collective Defense

Press release 2S4 dated May 25

At his news conference on May 25, a correspond-
ent recalled to Secretary Dulles his report to the
Nation following his return from Genei^a ^ in
which he set forth the conditions under which the
United States intervened in Korea. Mr. Dulles
was asked to relate those conditions to the Indo-
china situation. Mr. Dulles made the following
reply:

I pointed out, I think, the existence of certain
conditions in the case of Korea, and I went on to
say that the situation in Indochina was different
and more complex. '

I think that broadly speaking the attitude of the
United States toward this situation has been made
clear by statements which the President has made
and which I have made. I think it is fair to say ■
that the United States attitude in this matter has
been one of the few stable aspects in an otherwise
changing and fluid situation.

The position of the United States toward col-
lective security in Southeast Asia has been known
basically for quite a long while. In fact, it really
goes back to the time when I went out to the Far
East in, I think, January of 1951 on a mission to

' Bulletin of May 17, 1954, p. 7.'}9.

Department of State Bulletin

try to create a collective security pact in that area.
That etlort failed at that time in the sense that we
were not able to j^ut together a collective security
arrangement of any large proportions, and we
ended with a series of separate pacts — one with
Japan, one with Australia and New Zealand, and
another with the Philippines. But there was not
a regional security pact created at that time.

Then I think I pointed out that, in his great ad-
dress of April 1(5 of last year, President Eisen-
hower made a statement wJiich did not attract at
tlie time the attention it deserved perhaps because
of other aspects of his speech where he referred to
Korea and Southeast Asia and said thei'e should
be united action for the defense of Southeast Asia.

I repeated that statement in my IVIarch 29
speech -' after having previously discussed it with
congressional leaders and with our principal allies.

The general conditions under which the United
States is prepared to participate in collective de-
fense there or elsewhere, for that matter, are quite
well known. We are willing to participate in col-
lective defense basically upon the terms that are
laid down by the Vandenberg Resolution of June
1948, which laid down basic conditions under
wliich the United States would be prepared to
participate on the basis of mutuality and in ac-
cordance with the principles of the United
Nations.

We are not prepared to go in for a defense of
cnlonialism. We are only going to go in for de-
fense of liberty and independence and freedom.

We don't go in alone; we go in where the other
nations which have an important stake in the area
recognize the peril as we do.

We go in where the United Nations gives moral
sanction to our action.

All of those conditions are known. They have
been known. They are a basic part of American
foreign policy, ancl they are, as the President said
in one of his pi-ess conferences, a "stable" element
in the situation.

Mr. Dulles was then asked what was initiated hy
this Govermnent in the period ietimen March or
April of 1953 and May of this year to hrlng about
a Southeast Asian pact. He replied:

We did have conversations, particulai'ly with
the Fi'ench and the representatives of the Associ-
ated States who under conditions then existing
were apt to form the core of any defensive action
in that area.

A correspondent recalled that one of the condi-
tions laid down by Mr. Dulles in his speech of May
7 was to give independence to the Associated
States. The correspondent said that France and
Viet-Nam had initialed proposed treaties of inde-
pendence and association. He asked Mr. Dulles

' Ibid.. Apr. 12, 19.54, p. rj39.
June 7, 1954

how far those treaties go toward meeting this
point. Mr. Dulles made the following reply:

I think what France is doing will, from what
you might call a juridical standpoint, be a very
large step in fulfillment of their pledge of July 3
of last year of complete independence to the Asso-
ciated States. The main difficulty, I would say, at
the present moment is not so much juridical as it
is the translation of legal documents into a sense
on the part of the peoples of Viet-Nam, Laos, and
Cambodia that they really have an independence
for which it is worthwhile for them to fight and, if
need be, to die.

It takes time to translate papers that are signed
in Paris into the living spirit; and it also takes
time to overcome a certain feeling on the part of
many of the Asian nations that France is not
really sincere in its promises. I believe the
French are going a long way down that path —
perhaps from a legal standpoint as far as it is
either wise or necessary to go at the present time.
But it is one thing to have the letter and another
thing to have the spirit, and I would say at the
moment the principal deficiency is a translation of
the spirit of liberty into the area and in the con-
duct of the French people in relation to the native
peoples. There is quite a bit to be done, I think,
in that practical respect.

A reporter cited as one of the general conditions
for participation a place lohere the United Nations
gives moral sanction. He asked if the United
States had any plans for seeking that kind of
sanction from the United Nations. Mr. Dulles
answered:

There have been discussions off and on, I am
sorry to say more off than on, over the past year
or more with reference to bringing the United
Nations into this situation. At the moment the
prospects look somewhat better than they have
recently, but in the past we have been very close
to the United Nations action without its being
actually taken. So I don't want to forecast at the
present time.

Asked if tve loould support any appeal to the
United Nations for a peace ^nission or observation
mission to be sent into the Southeast Asian area,
he replied:

I believe if such an appeal were made, the United
States would support it.

Mr. Dulles was asked if the United States had
before it any request from the Freneh Government
for intervention in Indochina. He replied:

No, the French Government has made no such
request of the United States. They have had
some conversations to explore the conditions under
which that might be possible, and in that respect
the French have been told much the same thing

863

that has been publicly said by the President and
me as to the conditions, which as I say have been
stable and unchanging over a considerable period
of time, under which such intervention would be
considered possible. Of course, let me make clear
that one of the conditions which we have always
stood on is that there must be congressional sanc-
tion to any such action.

Five-Power Military Talks

Press release 283 dated May 25

Asked at his news conference on May 25 if he
could comment on reported flans to hold five-
power military staff talks in Washington, Secre-
tary Dulles made the following reply:

There have been going on a number of discus-
sions with a number of countries with relation
both to the political aspects and in regard to the
military aspects of a possible collective action in

relation to Southeast Asia. On the militai^ side
there have been plans for consultations both in
relation to Thailand, where their military position
is being reviewed, and Secretary Wilson is in
Manila and is having conversations there with the
Philippine Government with respect to its mili-
tary positions. Some of his military advisers are
there with him.

There have been some suggestions about discus-
sions between the three Anzus powers, that is,
Australia, i\\Q United States, and New Zealand,
and also bringing in the United Kingdom and
France. There has been no final decision on that
matter as yet, but conversations as to that possi-
bility are being considered. I want to emphasize,
however, that tliese military talks are in no sense
in substitution for political conversations which
are continuing to go on. Xor are these five-power
military talks, if they take place, in any sense ex-
clusive. As I emphasized, there are also similar
talks either going on or in contemplation with
Thailand and the Philippines.

The Growth of Freedom in India

'by George V. Allen
Ambassador to India ^

India was a faraway land, relatively unknown
to most Americans, until World War II, when
thousands of iVmerican G. I.'s went there and
served there because it was next door to Burma,
which was occupied by the Japanese. Before the
War it was known by American missionaries in-
timately, and by a i'ew American businessmen,
and many of us had learned sometliing about India
because of the prominence of Maliatma Gandhi
and his first lieutenant, Jawaharlal Nehru, who
were the leaders of India's struggle for independ-
ence. The United States had consular representa-
tives in India more than a hundred years ago, but
it has really been only since the war that India
has loomed very large in American thinking.

Today, India is the largest democracy in the
world, with more than 360 million people." Today,
India is an independent republic with a consti-
tution which has many features similar to our

' Excerpts from an address made over the radio network
of the Columbia Broadcasting System on May 16 (press
release 25S dated May 15).

864

own — particularly our Bill of Rights. Mahatma
Gandhi has passed on, but Mr. Nehru is India's
Prime ^linister, and he is still working to achieve
the benefits for his country that India considers
its due as a sovereign nation. That India is inde-
pendent is not doubted by us or by any Indian,
except perhaps by tlie Communists in India and
elsewliere who profess to believe, curiously, that
independence is real only if a country's internal
and foreign policies are the same as those of the
Soviet Union. Certainly we Americans are aware
of Indian independence. But Indians and Ameri-
cans alike are often puzzled by the fact tliat our
two countries have recently differed sharply over
foreign affairs.

Indians are puzzled because they consider that
they are exercising their right to independent
views — exercising that independence — which the
United States has always supported. They recall
that jVmerica supported India's independence
movement, not in a material way, but in a moral
and political waj^ Our stock was very high in
India when it achieved independence in 19i7 be-

Department of State Bulletin

cause Indians knew that the United States was the
first nation to fight and win independence in mod-
ern history. The writings of Washington, Jeffer-
son, Paine, and Lincohi were very familiar to
them. They also knew that the United States
Government had urged Britain to grant self-
government to India. I wish to return to this
matter of foreign policy differences with India
in a moment.

Seci'etary of State Dulles asked me to come
back to Washington from New Delhi to help an-
swer the questions which our representatives in
Congress are asking as they consider the acbninis-
tration's budget requests.^ Among the requests
which President Eisenhower has proposed is an
appropriation for military and economic assistance
to foreign countries. The President has proposed
that the United States Congress appropriate a
total of $104,500,000 for economic and technical
assistance to India.

I thought I might tell you what I have been
saying to your Senators and Congressmen, many
I of whom i have come to know as friends during
[my career of 25 years as a Foreign Service officer.
iYour representatives in Washington want to know
iwhy the United States should continue to give
economic assistance to India.

Over the last few weeks the attention of all of
lus has been turned very much toward Asia, par-
iticularly the long peninsula of Southeast Asia.
IThus we have come to understand the stakes for
jthe free world in the tremendous and vital
jstruggle that has been taking place in Indochina.
India has achieved a stable political status which,
could it be duplicated in Indochina, would cause
a large part of the world's worries about the latter
{country to vanish. Striking proof of India's suc-
cess in democracy was the national elections held
over 2 years ago when 107 million people voted in
lan atmosphere of peace and freedom. Thus, it is
j3urely a matter of the greatest importance to us
Ithat India should continue to succeed in the most
?iiormous experiment in democracy the world has
■ver seen.

\ Test of Two Opposed Systems

In Asia today two huge nations are testing
:avo opposed systems to see which can bring its
Dcople the greatest spiritual and material benefits

n the shortest time. On the Chinese mainland,
L'oinmunist totalitarianism gripping the Chinese

leople in an iron vise is attempting to achieve

•ii\nd material gain by ruthless methods which
sacrifice every human and spiritual value. In
'India, 360 million people, under the leadership

if a government chosen by their own votes, are

" Kor the text of a statement on economic assistance to
'iiilia made by Ambassador Allen before the Committee
'u Foreign Affairs, House of Representatives, on ftlay 4,
HH' Bulletin of May 17, 1954, p. 759.

attempting to achieve similar material goals
through democratic methods which respect the po-
litical, religious, and social rights of the individ-
ual. The relative degree of success achieved by
these two systems may well determine the future
of Asia.

This is not to say, of course, that a state of
democratic perfection has been achieved in India,
and few Indians would try to make such a claim.
But democracy has put down solid roots, demo-
cratic habits are becoming stronger, while great
progress has been made in driving back old social
evils that formerly retarded India's economic and
Ijolitical development.

Indians are justly and understandably proud
of the rapid and successful transition they have
made from colonial status to independent nation-
hood but this has not blinded them to the over-
whelming character of their economic tasks.
Rather Indian leaderSj from Nehi-u on down, are
acutely aware that their hard- won political rights
cannot survive for long without real economic
progress, progress for the masses of India long
submerged in hopeless poverty but now emerging
to demand more and better food, clothing, and
housing. The people of India are attacking the
causes of Indian poverty with imagination and
boldness. The Government's Five Year Plan of
economic development is a well-thought-out, ma-
ture program which tackles India's most pressing
economic difficulty — her shortages in food-grains —
while at the same time laying the foundations for
the widespread industrial growth which must
evolve if India is to make real progress. This
plan is not one for the socialization of India. Al-
though the state plays an important part, great
dependence is placed on speedy expansion of pri-
vate industry.

Perhaps the most important part of the plan is
the so-called community-development program
whose aim is to improve the overall productivity
of the Indian village where over 80 percent of
India's people live. This is being done primarily
through simple improvements in the cultivation
methods of the Indian farmer but also by improv-
ing village handicrafts, health conditions, and
communications. Most important of all, this
whole process is bringing about a real awakening
of the Indian villager from generations of inertia
and indifference.

Ninety percent of this effort is entirely Indian
but I think Americans can take justifiable pride
in the fact that we have made a real contribution
in men and money to the measurable economic
progress made by the Indian people since achieving
their independence. In recent years American
county agents have gone out into Indian villages
to advise on plowing, planting, and the use of
improved seetls. American health experts have
assisted in the hard struggle against malaria, the
greatest killer and disabler. American dollai-s

;one 7, 1954

865

have made possible the drilling of hundreds of
deep wells whose waters have raised the produc-
tivity of parched acres. India has used effectively
the aid we have given and can usefully absorb the
aid provided for in the 1955 program.

In India democracy faces its most important
trial — unless it succeeds there we cannot expect
democracy to command the respect of other Asian
peoples. Further economic assistance to India is
clearly in our national intere-st. We are not trying
to put out a fire in India. But we are taking con-
structive fire preventive measures. We are not
waiting until the country is in immediate peril
before taking an interest in it.

Our desire to encourage the growth of economic
and political freedom in India is an important
reason for continuing our aid but there are other
compelling reasons. Our economic aid to India
provides solid testimony to the nations of Asia
that this country is aware of the need to remove
the conditions which encourage the growtli of
communism in addition to simply being willing
to strengthen armed resistance to communism
whenever it threatens aggression.

Distrust of Western Motives

Unfortunately, as part of the aftermath of
western colonialism in Asia, the Asian peoples are
still distrustful of the methods and motives of
ourselves and our allies. Tlie Communists play
skillfully on the suspicion that any move we make
to strengthen the forces of freedom through mili-
tary means is in reality aimed at establishing a
new, American imperialism in Asia. Our eco-
nomic and technical assistance programs in India
provide tangible proof that our policy is not one
of exploitation but ratlier one of enlightened self-
interest striking at poverty and ignorance, which
are the basic causes of aggression and chaos, and
that we have not decided that there are only mili-
tary solutions to Asian problems.

I am not ashamed to say that I think aid to
India should be given in part on purely humani-
tarian grounds. Within the limits of our own
national economic health, it is good for the world
and for our own souls to assist in raising the
economic level of nations poorer than we arc. We
need not be afraid of being called do-gooders
when we are acting in keeping with our own
highest national traditions.

A recent source of friction between India and
the United States was our recent decision, in re-
sponse to Pakistan's request, to give military as-

sistance to Pakistan.^ This decision was taken
to help Pakistan become a stronger member of
the community of free nations who are determined
to resist Communist aggression. Between India
and Pakistan there are still a number of important
unsolved disputes and our decision to aid Pakistan
militarily was greeted with a great deal of un-
easiness in India since it was feared tliis aid might
be used against India. President Eisenhower, in
his announcement and in his letter on tlie subject
to Prime Minister Nehru, made it absolutely clear
that the arms we would give could in no way be
used in aggression without his taking appropriate
action in accordance with his constitutional au-
thority. Our decision to help Pakistan with mili-
tary equipment heightens the need for strengthen-
ing our ties with India.

However, India lias proved its willingness to
lend a hand in settling vexing international dis-
putes. In Korea, India assumed tlie difficult ta,sk
of acting as custodian for those prisoners of war
from each side who did not wish to return to their
iiomelands. President Eisenhower sent his per-
sonal congi-atulations to Prime Minister Nehru
on the fine job done by the Indian forces in Korea.^

I believe too that in this country there are some
common misconceptions about the attitude of In-
dia and its leaders toward communism. The Com-
munists are an active political party in India
today but they have not been so successful there
as tiiey have been in some other foreign countries.
The party remains a determined minority group,
eager and clever at capitalizing on any failures or
shortcomings of tlie present democratic govern-
ment of Prime Minister Nehru. However, Mr.
Nehru and the Congress Party which he heads
are strongly anti-Communist. They have not hes-
itated to suppress vigorously Communist violence.
They find frequent opportunity to point out to
tlie Indian people that communism is a foreign
ideology controlled and manipulated by foreigners
in a foreign land — Russia.

Last year Congress enacted a substantial aid
progi-am for India. I do not believe that any
events of the past year have altered materially the j
factors which led us to decide to give this aid. An
independent India is still an important source of
strength to the free world. I hope deeply that
the work we have started in India can go on and
that the Congress will enact the President's pro-
posals for continuing to help India with technical
assistance and a certain amount of basic economic
aid. . . .

' Ibid., Mar. 15, 1954, p. 400.
* Ihid.. Mar. 1, 1954, p. 334.

866

Department of Sfofe Bulletin

Ethiopia's Role in World Affairs

Following are the texts of (1) an. address hy
Ilaile Selassie /, Emperor of Ethiopia^ nKide he-
fore a joint session of the Senate and the Hou.se of
Representatives on May 28, and {2) statements
made hy President Eisenhower and Emperor
Ilaile Selassie at the state dinner given at the
White House on May 26 in the Emperor's honor:

ADDRESS BY HAILE SELASSIE |i

I count it a privilege to address what is one of

the greatest parliaments in the world today —

where the forces that make great one of the most

{ powerful of nations have been and are being

' brought to bear and where issues of worldwide

importance have been decided.

The extent of that power and influence and the
rapidity with which you have reached such a sum-
mit of importance for the rest of the world are un-
jxiralleled in world history and beggar all con-
ceivable comparisons. Two hundred years ago
^ today, as I am speaking, Gen. George Washington
won the battle of Fort Necessity, a victory which
was but a step in the gradual forging together of
the United States. Wliat a phenomenal progi'ess
has been made in that interval of 200 years, an
interval which — you may pardon me as representa-
tive of one of the most ancient nations in the
world — is surely but a surprisingly short passage
of time.^

So great are your power and wealth that the
budget of a single American city often equals that
of an entire nation.

As in the case of other countries, you gave us
lend-lease assistance during the war and, at
present, both mutual security and technical assist-
ance. Yet, so vast are your power and resources
that even after deducting all expenses of the Fed-
eral Government, you have met the costs of this

^' Reprinted from the Cmg. Rec. of May 28, 1954, p. 6945.

' After reading the flr.st two paragraphs in English,
Emperor Haile Selassie delivered the remainder of his
address in the Amharic language.

June 7, J 954

assistance in one quarter of an hour — 15 minutes —
of your annual production.

Of what interest is it to you then, you may well
ask, that I, the head of what must be for you a
small and remote country, should appear before
you in the midst of your deliberations? I do not
take it upon myself to point out why Ethiopia is
important to the United States — that you can best
judge for yourselves, but, rather, to explain to you
with brevity, the circumstances which make
Ethioj^ia a significant factor in world politics.
Since so much of world politics is, today, in-
fluenced by the decisions which you. Members of
Congress, reach, here in these halls, it is, perhaps,
not unimportant that I set out these considerations
for you.

A moment ago, I remarked that, for you, EtM-
opia must appear to be a small and remote country.
Of course, both of these terms are purely relative.
In fact, so far as size is concerned, Ethiopia has
exactly the area and population of your entire
Pacific far west consisting of the States of Cali-
fornia, Oregon, Washington, and also Idaho.
We are remote, perhaps, only in the sense that
we enjoy a secure position on the high plateau
of East Africa protected by the Red Sea and our
mountain fastnesses. However, by the numerous
airlines that link us with the rest "of the world, it
is possible to arrive in Washington from Addis
Ababa in less than 2 days.

By one of those strange parallels of history,
Ethiopia and a certain well-known country of the
Far East who both enjoy highly defensible and
strategic positions in their respective areas of the
world, both for similar reasons, simultaneously,
at the beginning of the I7th century, entered upon
a 200-year period of isolation. As in the case
of the other country, that isolation came to an
end in the latter half of the 19th century, with
this difference that, upon abandoning her policy
of isolation, Ethiopia was immediately called
upon to defend against tremendous odds lier
thousand-year-old independence. Indeed, so bit-
ter has been this struggle against foreign aggran-
dizement that were it not for our persistence and
for the enormous social, economic, and material
advances that Ethiopia has made in the interval,
and particularly since the close of the last war,

867

Ethiopia mifjlit very well have retui'ned to her
policy of isolation.

Ethiopia a New Frontier

111 consequence, in many respects, and particu-
larly since the last World War, Ethiopia has be-
come a new frontier of widely expanding oppor-
tunities, notwithstanding the tremendous setoack
which we suffered in the unprovoked invasion of
our country 19 years ago and the long years of
unaided struggle against an infinitely stronger
enemy. The last 7 years have seen the quadru-
pling of our foreign trade, currency, and foreign-
exchange holdings. Holdings of American dol-
lars have increased 10 times over. The Ethiopian
dollar has become the only United States dollar-
based currency in the Middle East today. The
assets of our national bank of issue have increased
1,000 percent. Blessed with what is perhaps the
most fertile soil in Africa, well-watered, and with
a wide variety of climates ranging from the tem-
perate on the plateau, to the tropical in the val-
leys, Ethiopia can grow throughout the year
crops, normally raised only in widely separated
areas of the earth's surface. Since the war,
Ethiopia has become the granary of the Middle
East, as well as the only exporter'of meat, cereals,
and vegetables. Wliereas at the end of the war,
every educational facility had been destroyed, to-
day, schools are springing up throughout the land,
the enrollment has quadrupled and, as in the
pioneer days in the United States, and indeed, I
presume, as in tlie lives of many of the distin-
guished Members of Congress here present, school-
children, in their zeal for education, take all sorts
of work in order to earn money to purcliase text-
books and to pursue their education.

Finally, through the return in 1952 of its historic
ports on the Red Sea and of the long-lost territory
of Eritrea, Ethiopia has not only regained access
to the sea, but has been one of the few states in
the postwar world to have regained lost territory
pursuant to postwar treaties and in application of
peaceful methods.

We have thus become a land of expanding op-
portunities where the ^Vmerican pioneering spirit,
ingenuity and technical abilities have been and
will continue to be welcomed.

A thousand year old history of struggles to de-
fend the territorial integrity of our countrv. the
long fight for liberation two decades ago aiid the
recent campaign in Korea have given our army
an esprit de corps and a fighting spirit that. I
believe, can stand, without misgiving, for com-
parison. Today, our fighting forces are among the
largest and best trained in the IMiddle East.

The struggle for liberation served to strengthen
the forces of national consciousness and unity and
since that time we have made significant advances
in social progress. Unlike many otlier countries,
Ethiopia has long been a nation of small, rather

than of large, landowners. Moreover, a pro-
foundly democratic tradition has assured in the
past, as it assures today, the rise to the highest
posts of responsibility in the Government, of men
of the humblest of origins.

It is but natural, therefore, that a state which
has existed for 3,000 years, which lias regained
its independence by the blood of its patriots, which
commands the allegiance and loyalty of even its
most lowly subjects, and which enjoys an unusually
sound economy, should have a regime of marked
stability on that area of the world where stability
is so frequently absent today.

Position in World Politics

Such is the state of Ethiopia today about which
I am speaking. It is against this backgi-ound that
I wish to talk to you of Ethiopia as a factor in
world politics. Her geographic location is of great
significance, with lier long shore line and its archi-
pelago of hundreds of islands. Ethiopia occu-
pies a unique position on the most constricted but
important of strategic lines of conununications in
the world, that which passes through the Red Sea.
She also lies on the other most strategic line of
communication in the world, namely, the world
band of telecouinumications whicli, because of nat-
ural phenomena, circles the world at the Equator.

However, in yet a perhaps broader sense is Ethi-
opia's geographical position of significance.
Through her location on the shores of the Red Sea
and in the horn of East Africa, Ethiopia has pro-
found historical ties with the rest of the Middle
East as M-ell as with Africa. In this respect she
stands in a completely unique position. Her cul-
ture and social structure were founded in the
mingling of her original culture and civilization
witii the Ilamitic and Semitic migrations into
Africa from tlie Arabian Peninsula, and, in fact,
today, our language, Amharic, is a member of that
large family of Hamitic and Semitic tongues and,
therefore, intimately related to Hebrew and
Arabic. Indeed, at one time Ethiopia extended to
both sides of the Red Sea as well as north to upper
Egypt. It was, therefore, not without reason that,
during the Middle Ages the Emperor was known
as "he who maintains order between the Christians
and the Moslems." A profound comprehension of
and sympathy with the other states of the Middle
East naturally inspires Ethiopian national poli-
cies.

On the other hand, 3,000 years of history make
of Ethiopia a profoundly African state in all that
term implies. In the United Nations, she has been
to the forefront in the defense of Africa's racial,
economic, and social interests.

Finally, both culturally and geographically,
Ethiopia serves to a unique degree as the link
between the Middle East and Africa. Situated
in the horn of Africa, and along the shores of
the Red Sea, with the desert area of Africa to

868

Department of State Bulletin

the north and west, it is but natural that Ethiopia
should be the filter through which the ideas and
influences of the continent of Africa should pass
to the East and vice versa.

Thus, our social and political outlook and
orientation became important not only in terms
of Middle Eastern and African but also, in terms
of world politics — and this leads me to point to
a factor which I consider to be of unique sig-
nificance. We have a profound orientation
toward the West. One consideration alone,
although there are others, would suffice to explain
this result. The two Americas and the continent
of Europe together constitute exactly one-third
of the land masses of the world. It is in this one-
third that are concentrated the peoples of the
Christian faith. With but rare exceptions
Christianity does not extend beyond the confines
of the Mediterranean. Here, I find it significant
that, in point of fact, in this remaining two-thirds
of the earth's surface, Ethiopia is the state having
the largest Christian population and is by far the
largest Christian state in the Middle East. In
fact, Ethiopia is imique among the nations of the
world in that it is, today, the one remaining
Christian state that can trace her history unbroken
as a Christian polity from the days when the
Roman Empire itself was still a vigorous reality.

The strength of the Christian tradition has been
of vital significance in our national history, and
as a force for the unification of the Empire of
Ethiopia. It is this force which gives us, among
the other countries of the Middle East, a profound
orientation toward the West. We read the same
Bible. We speak a common spiritual language.

It is this heritage of ideals and principles that
has excluded from our conscious, indeed, from our
unconscious processes, the possibility of com-
promising with those principles which we hold
sacred. We have sought to remain faithful to the
principle of respect for the rights of others, and
the right of each people to an independent
existence. We, like you, are profoundly opposed
to the un-Christian use of force and are, as you,
attached to a concept of the pacific settlement of
disputes. Our lone struggle before the outbreak
of the last world catastrophe as, indeed, our recent
participation in the combined efforts and the
glorious comradeship in arms in Korea have
marked us, like you, in giving more than lipservice
to these ideals. It is your deep comprehension of
our ideals and struggles in which it has been my
privilege to lead, at times not without heartbreak,
my beloved people, and our common comradeship
in arms tliat have laid a very sure and lasting
basis for friendship between a great and a small
country.

U.S. -Ethiopian Commercial Relations

Last year, we concluded with you a new treaty
of friendship, commerce, and navigation de-

signed to assure to American business enteri^rise
expanded opportunities in Ethiopia. Our dollar-
based currency is also there to assure the ready re-
turn to the United States of the profits of their
investments. We have entrusted to American
enterprise the development of our civil aviation
wliich has surpassed all expectations. To Ameri-
can enterprise we have confided the exploitation
of our oil resources as well as of our gold deposits.
Altliough my country is 8,000 miles removed from
the eastern seaboard of the United States, United
States exports to Ethiopia have, notwithstand-
ing tliis heavy handicap, pushed forward to the
forefront in Ethiopia.

Conversely, the United States stands in first
rank of countries to whom we export. Ethiopia
whicli has, from the Province of Kaffa, given the
world the name and product of coffee, produces on
her high plateau one of the finest mocha coffees
in the world. The coffee which you drink at-
tains its imique and pleasant American flavor
in part, at least, through the added mixture of
Ethiopian coffee. American shoes are made, in
part at least, from Ethiopian goatskins which are
principally exported to the United States.

On the other hand, you have given us valuable
support, not only in lend-lease assistance during
the war, and today through mutual-security and
technical-assistance agreements, but you have also
powerfully aided us in obtaining rectification of
long-standing injustices. If, today, the brothers
of Ethiopia stand finally united under the Crown
and if Ethiopia has regained her shoreline on the
Red Sea, it has been due, in no small measure to
the contribution of the United States of America.
I am happy to take this occasion to express to you,
the Congress, which has approved this assistance,
the sincere amd lasting appreciation of my people.

Defense of Collective Security

This collaboration with the West and with the
United States in particular has taken yet broader
forms. There is our military collaboration based
on the mutual-security program. If we leave
aside Greece and Turkey as belonging to the
North Atlantic group, Ethiopia has been the only
state of the Middle East to follow the example of
the United States in sending forces to Korea for
the defense of collective security.

In so doing, Ethiopia has been inspired by a
vision which is broader than her preoccupation
with regional policies or advantages. Nearly
two decades ago, I personally a.ssumed before his-
tory tlie responsibility of placing the fate of my
beloved people on the issue of collective security,
for surely, at that time and for the first time in
world history, that issue was posed in all its clar-
ity. My searchings of conscience convinced me
of the rightness of my course and if, after untold
sufferings and, indeed, unaided resistance at tlie

June 7, J 954

869

time of aggression, we now see the final vindica-
tion of that principle in our joint action in Korea,
I can only be thankful that God gave me strength
to persist in our faith until the moment of its re-
cent glorious vindication.

We do not view this principle as an extenuation
for failing to defend one's homeland to the last
drop of one's blood, and, indeed, our own struggles
during the last two decades bear testimony to our
conviction that in matters of collective security
as of Providence, "God helps him who helps him-
self." However, we feel that nowhere can the
call for aid against aggression be refused by any
state, large or small. It is either a universal prin-
ciple or it is no principle at all. It cannot admit
of regional application or be of regional respon-
sibility. That is why we, like you, have sent
troops halfway around the world to Korea. We
must face that responsibility for its application
wherever it may arise in these troubled hours of
world history. Faithful to her traditions and out-
look and to the sacred memory of her patriots who
fell in Ethiopia and in Korea in defense of that
principle, Ethiopia cannot do othenvise.

The world has ceaselessly sought for and
striven to apply some system for assuring the
peace of the world. Many solutions have been
proposed and many have failed. Today the sys-
tem which we have advocated and with which the
name of Ethiopia is inseparably associated has,
after her sacrifices of two decades ago, and her
recent sacrifices with the United States and others
in Korea, finally demonstrated its worth. How-
ever, no system, not even that of collective secu-
rity, can succeed unless there is not only a firm
determination to apply it universally both in
space and time, but also whatever be the cost.
Having successfully applied the system of collec-
tive security in Korea, we must now, wherever in
the world the peace is threatened, pursue its ap-
plication more resolutely than ever and with
courageous acceptance of its burdens. We have
the sacred duty to our children to spare them
the sacrifices which we have known. I call upon
the world for determination fearlessly to apply
and to accept — as you and as we have accepted
them — the sacrifices of collective security.

It is here that our common Christian heritage
unites two peoples across the globe in a commu-
nity of ideals and endeavor. Ethiopia seeks only
to affirm and broaden that cooperation between
peace-loving nations.

TEXTS OF TOASTS

President Eisenhower

Your Majesty, Ladies and Gentlemen : Dur-
ing the past century and a half, there have been
entertained within these walls many individuals

of distinction — some of our own country, some
visiting us from abroad. I think it is safe to say
that never has any company here gathered been
honored by the presence in their guest of honor
of an individual more noted for his fierce defense
of freedom and for his courage in defending the
independence of his people than the guest of
honor this evening.

I read once that no individual can really be
known to have greatness until he has been tested
in adversity. By this test, our guest of honor
has established new standards in the world. In
5 years of adversity, with his country overrun but
never conquered, he never lost for one single sec-
ond his dignity. He never lost his faith in him-
self, in his people, and in his God.

I deem it a very great privilege, ladies and
gentlemen, to ask you to rise and with me to drink
a toast to His Imperial Majesty, the Emperor of
Ethiopia.

Haile Selassie I

1 thank you, Mr. President, for the kind senti-
ments which you Iiave expressed on this occasion,
because I take them, not as addressed to me, but to
my beloved people.

I have accepted your kind invitation, Mr. Pres-
ident, to come to the United States and visit your
nation, because it has offered me the occasion to
express the depth of my appreciation and that of
my people for your friendship and assistance
which encouraged and aided us in resuming our
march on the road of progress from which we
had been detained by the imperatives of war. That
assistance is today, in yet more varied forms,
strongly impelling us forward on the path of
progressive development.

By your great comprehension of the problems
with which Ethiopia is faced, it has been pos-
sible for us to achieve, with your help, consider-
able progress in the solution of the present hour.
The smoothness of this collaboration, notwith-
standing the barriers of distance and language,
and the breadth and richness of our relations at-
tained during the half-century to which you, Mr.
President, have alluded, constitute the supreme
manifestation of that extraordinary flexibility of
understanding and felicity of spirit with which
you, as a nation, have been endowed, and of the ,
trust and confidence which you inspire in the |
minds of others.

I raise my glass to the men and women of the
great and noble American nation, and to its heroic
and distinguished chief, President Eisenhower,
and, last but not least, to his consort and wife,
who so charmingly represents in her person the
women of the United States and the role which
they play in giving leadership to American
thoughts and ideals throughout the world.

870

Department of Stale Bulletin

Visit of Haile Selassie I

News Conference Statement hy Secretary Dulles

Press release 280 dated May 25

The Emperor of Ethiopia, Haile Selassie I, has
arrived in this country and is expected here in
Washington tomorrow. We welcome his arrival
here very much.

Ethiopia is the oldest independent country in
Africa and it has been a Christian nation since the
fourth century. The United States has had dip-
lomatic relations with Ethiopia for over 50 years.
The Emperor of Ethiopia has demonstrated since
the earliest days of his reign the highest devotion
to the principles of collective security. Ethiopia
has been a steadfast supporter of the United Na-
tions and the Emperor's countrymen have been
among the most courageous of our comrades-in-
arms in Korea. I am confident that the American
people will extend their heartiest welcome to the

Emperor, whom we have long respected and
admired and whose people we count on as friends
and allies.

Registration of Base Agreement
With Etiiiopia

Press release 289 dated May 28

The Secretary of State and His Excellency the
Minister of Foreign Affairs of Ethiopia, Ato
Aklilou Abte Wold, today announced that the
United States was presenting for formal registi'a-
tion Mith the Secretariat of the United Nations
an agreement concluded in 19.53 between the Ethi-
opian and United States Governments concerning
the utilization of defense installations within the
Empire of Ethiopia. The only United States
military installation involved is the United States
Army radio station at Asmara in Eritrea which
began operating during the Second World War.

Technical Cooperation and the American Heritage

hy Harold E. Stassen

Director, Foreign Operations Administration ^

Before I begin this brief discussion of our tech-
nical cooperation programs, I should like to ex-
press my genuine admiration for the outstanding
support that you have given these programs from
the pulpits of your churches.

There has been submitted for the consideration
of the Congress a technical cooperation progi'am
for the coining year of $131.G million. This is
an increase of more than $24 million over the sum
that was appropriated for the present year's
activities.

As the ancient and time-tested enemy of oppres-
sion and the undaunted champion of brotherhood
among all men, the religious leadei*sliip of America
has played a decisive role in gathering the en-
thusiastic support of the American people for
expanded programs of teclinical cooperation.

' Adtlress made before the Ministerial Union of Wash-
ington, Washington, D.C., on May 24.

These programs are more than a reflection of
the highest American humanitarianism; their
concept springs from the moral and ethical ob-
ligations of man to his fellow men, which are the
strength and foundation of Christian tradition.

In this respect it is highly fitting that technical
cooperation should be part of a positive American
foreign policy; for foreign policy has identical
origins with our everyday lives — the religious
principles and the democratic precepts which are
the wellsprings of the practical idealism that has
made America great.

There are as many paths to progress as there
are nations and peoples. Technical cooperation
programs seek to explore these paths, to exchange
ideas and methods, theories and practices, and,
by this fusion of mankind's accumulated knowl-
edge and experience, to find the best ways to
lay the building blocks for a better world of
tomorrow.

June 7, 1954

871

Qualified Technicians Are Hard To Find

At the present time there are more than 1,800
U.S. technicians servinn; in 42 countries of the
world. This is the largest number of technicians
America has ever sent overseas; yet the number
is not sufficient to meet our goals. The Foreign
Operations Achninistration would like to increase
this number to 2,500 by the end of 1954.

These technicians are not easy to find. They
must have a high degree of technical competence
in their special fields. But more than that, they
must also possess a rare understanding and an
ability to work with many peoples of different
cultures and creeds.

An American agricultural agent will rarely ex-
plain a new concept over a conference table cov-
ered with geographical charts. More often he
must leave the confines of his office and his home
and go out into the fields with the farmers.

The public health nurse might practice her pro-
fession in a community health center. Yet fre-
quently she will be found riding for many long
hours in an open jeep, over bumpy, dusty roads,
to remote villages out of reach of the health
center.

The rewards for these technicians are not finan-
cially great, but there is a supreme satisfaction
in knowing that yesterday a child afilicted with
measles would develop pneumonia and die and
that today a local nurse, trained through coopera-
tive health programs, will administer penicillin
and save that child's life.

If, in your sermons and your close contact with
your congregations, you would salute these
courageous and spirited Americans, you would not
only be giving them the recognition and honor
they so rightfully deserve but at the same time you
would encourage qualified Americans to respond
to this calling.

Effectiveness of Programs

I am often asked, "How can the effectiveness of
these programs be measured ?" Sometimes we are
able to count the results in increased agricultural
production or in the elimination of widespread
disease or in rising attendance at a newly finished
village school. However, these statistics are often
difficult to obtain. We are working in areas where
even simple population figures are frequently un-
available.

Yet, from another viewpoint, there has been
clearly noted a new spirit, an intense desire to
move ahead instead of backward. For example,
some months back in the town of Grecia in Costa
Eica a group of citizens entered the headquarters
of the joint technical cooperation mission. They
inquired if they could see the farm extension
agent. The word had gotten around to them that
this man could do things for their land that were
nothing short of a miracle. They were told that

872

there were not sufficient funds to send him to their
village. Sadly the people of Grecia returned to
their homes.

But the desire had been planted and could not be
easily suppressed. By popular subscriptions, by
passing the hat, they raised enough money to pay
the salary and expenses for their own agricultural
specialists. Eecently the valiant little town held
its first public exposition of the results. The Pres-
ident of Costa Rica, the American Ambassador,
and some of our Foa people attended the fair. I
would find it difficult to measure, in terms of sta-
tistics, the local pride and overwhelming self-con-
fidence that these people liave generated in them-
selves through their own efforts.

There is the most profound indication of the
great impact of these programs in the moving
stories that are reported from the field. In help-
ing people to help themselves, it is not enough that
they be furnished the tools with which they might
build a better life; there must be instilled an iiuier
initiative, an abiding spirit that springs from
within.

One such stoiy was recently reported to me from
our mission in Ethiopia. In the city of Jimma
the joint technical cooperation program has es-
tablished an agric\iltural school under the guid-
ance of the Oklahoma A & M College. One day
last fall a very bedraggled and tired looking boy
walked into the school. He had traveled more
than 800 miles, mostly on foot, just to apply for
admission. He hadn't eaten for 2 days and was
obviously weak from hunger and exhaustion. He
was put in a hospital for a week, and when he was
well he took the entrance examination. He
achieved a passing grade and at this moment is
pursuing his studies. This kind of courage, this
kind of initiative and determination, can surmount
any baiTiers.

Fonds Parisien is a little hamlet on the road to
Malpasse in Haiti. In 1047 FotuIs Parisien was
a dying community, dying from lack of water and
impoverished soil. Those villagers who resisted
the urge to move on were forced to live on "catie"
seeds and to cut off twigs and branches for charcoal
production as their only livelihood.

Fonds Parisien is a different jilace now. Arid
lands have been scientifically cultivated. Brush-
land has been planted with rice, corn, beans, and
vegetables. As farmer Toussaint Exaus put it,
"Mj' grandmother died here from starvation. Be-
fore the irrigation came, I was forced to dress
in tatters. Now I have two new paire of pants
with several fine shirts. By our standards I am
a wealthy man."

I do not believe any appreciation can equal that
which was shown by a young father in Iran. He
arrived one day at the joint public health service
beaming with joy. Happily he reported that at
last a son had been born and had lived. Nine pre-
vious children had died. The proud father was

Deparfmenf of State Bulletin

congratulated and was asked what he had named
his young son. His answer was, "I named him
Point 4."

Importance of the Individual to Technical Coopera-
tion

These heartwarming stories are a vivid expres-
sion of both the political and religious heritage of
America. Our people are deeply concerned with
the individual. Our youth strive to emulate great
men. The spotlight has alwaj's been focused upon
individual accomplishments and individual as-
j)irations.

Our Bill of Eights guards the minority from
the abuses of the majority and protects the op-
portunity for the individual citizen to achieve his
potential economically, politically, and spiritually.
From another viewpoint that same spirit is part
of our religious heritage. We gage the achieve-
ments of these programs with a clear recognition
of the inherent value of the individual man.

Out of past experiences there have been devel-
oped in recent months new trends in our technical
cooperation programs. In planning these activi-
ties, we have made far greater use of colleges, uni-
versities, professional societies, and cultural
groups. These resources enable us to tap broader
sources of knowledge and experience to implement
the programs.

There are now 35 college contracts nnder the
technical cooperation progi'ams, and the Foreign
Operations Administration has agi'eements with
113 professional societies and commercial organi-
zations to provide specific technical services
abroad.

There has been an encouraging increase in proj-
ects carried out in cooperation with voluntary
agencies, both of a religious and secular charac-
ter. These church and lay groups play a highly
significant role in technical cooperation. Because
of the very nature of their organization, volun-
tary agencies are free to experiment and in a very
large way to pioneer in technical cooperation work.
They can undertake pilot projects which yield
many valuable experiences which are later applied
to full-scale technical cooperation activities.
Moreover, it is often easier for these voluntai"y
groups to get down to the level of the individual,
where the most effective gains can be made.

Results vs. Costs

The total United States budget for technical
cooperation, including the U.S. contributions to
the multilateral activities of the United Nations,
amounts to about 10 cents a month for each U.S.
adult citizen.

I am firmly convinced that this is a small sum
when compared to the achievements of these
activities.

June 7, 1954

301203 — 54 3

They are of necessity long-range programs.
They are a product of a continuing and living
experience. They are based upon the individual
dignity of man and a deep-rooted belief that,
given the opportunity, all men can sui)plant futil-
ity, fear, and poverty with faith, freedom, and
progress.

A year ago President Eisenhower urged :

. . . the dedioatiou of the energies, the resources, and
the imaginations of all peaceful nations to a new kind
of war. This would be a declared total war, not upon
any human enemy but upon the brute forces of poverty
and need.

The peace we seek, founded upon decent trust and
cooperative effort among nations, can be fortified, not
by weaixjns of war but by wheat and liy cotton, by milk
and by wool, by meat and liy timber and by rice. These
are words that translate into every language on earth.
These are needs that challenge this world in arms.

He then went on to say :

. . . The purposes of this great work would be to help
other peoples to develop the undeveloped areas of the
world, to stimulate profitable and fair world trade, to
assist all peoples to know the blessings of productive
freedom.

The monuments to this new kind of war would be these :
roads and schools, hospitals and homes, food and
health.

We are ready, in short, to dedicate our strength to
serving the needs, rather than the fears, of the world.

It is through these technical cooperation pro-
grams that the United States seeks to translate
into practice those principles which are the moving
force behind the inspiring words of our President.

Communist Influence in Guatemala

Netos Conference Statements hy Secretary Dulles

Press releases 279 and 285 dated May 25

The Guatemalan nation and people as a whole
are not Conununists. They are predominantly
patriotic people who do not want their nation to
be dominated by any foreign power. However,
it must be borne in mind that the Communists
always operate in terms of small minorities who
gain positions of power. In Soviet Russia itself
only about 3 percent of the people are Communists.

In judging Communist influence in Guatemala
three facts are significant :

1. Guatemala is the only American State which
has not completed ratification of the Rio Pact of
the Americas.

2. Guatemala was the only one of the American
States which at the last inter-American Confer-
ence at Caracas voted against a declaration that
"the domination or control of the political institu-

873

tions of any American State by the international
communist movement, extending to this hemi-
sphere the political system of an extracontinental
power, would constitute a threat to tlie sovereignty
and political independence of the American States,
endangering the i^eace of America". . . .^

3. Guatemala is the only American nation to be
the recipient of a massive shipment of arms from
beliind the Iron Curtain.

It has been suggested from Guatemala that it
needs more armament for defense. Already Gua-
temala is the heaviest armed of all tlie Gentral
American States. Its military establishment is
three to four times tlie size of that of its neighbors
such as Nicaragua, Honduras, or El Salvador.

The recent shipment was effected under condi-
tions which are far from normal. The shipment
was loaded at the Connnunist-administered Port
of Stettin. The sliip was cleared for Dakar,
Africa. The operat ion was cloaked under a series
of chartering arrangements so that the real ship-
per was very diilicull to discover. A\'hen he was
discovered he claimed that the shi])ment consisted
of nothing but optical glass and laboratory equip-
ment. When the ship was diverted from its os-
tensible destination and arrived at Puerto Barrios,
it was landed under conditions of extraordiiiary
secrecy and in the pei'sonal presence of the Min-
ister of Defense. One cannot but wonder why, if
the operation was an aboveboard and honorable
one, all of its details were so masked.

By this arms shipn;ent a government in which
Communist influence is very strong has come into
a position to dominate militarily the Central
American area. Already the (iuatcunilan (iov-
ernment has made gestures against its neighboi-s
which they deem to be threatening and whicli have
led them to apjieal for aid.

The Guatemalan Government boasts that it is
not a colony of the United States. We are proud
that Guatemala can honestly say that. The United
States is not in the business of collecting colonies.
The important question is whether Guateunila is
subject to Communist colonialism, which lias al-
ready subjected 800 million peoj^le to its despotic
rule. The extension of (^ommunist colonialism to
this hemisphere would, in the words of the Caracas
Resolution, endanger the peace of America.

' Bulletin of Apr. 26, 1954, p. 638.

Secretary Dullen was asked whether his state-
ment on Guatemala left the implication that the
sending of arms to Guatemala from behind the
Iron Curtain miyht properly he covered by the
Resolution of Caracas or the Rio Treaty. Mr.
Dulles made the following reply:

The Avhole question of determining the circum-
stances justifying invoking the Kio Treaty is being
studied. The evidence is being accumulated. We
don't have it all at the present time, and until it
is accumulated and until we have exchanged views
with other American countries no decision has
been made as to whether or not to invoke the con-
sultative processes of the Rio Treaty.

Asked under what conditions the United States
might act, whether alone or through implementa-
tion of the Rio Pact, Mr. Dulles replied:

We would expect to act undei- the Rio Pact,
and in full conformity with our treaty obligations.
No member of the Rio I'act gives up what the
charter of the United Nations calls the inherent
right of individual or collective self-defense; that
right is I'eserved. Nevertheless, it is contemplated
that, if the circumstances pei'mit, there should be
an effort, a sincere effort, at collective action and
we would expect to comply with both the letter
and the spirit of our treaty obligations.

Asked whether the United States intends to take
the initiative in invoking the consultative clause
of the Rio Treaty in the event none of the other
member countries do so, Mr. Dulles replied:

That is an academic question because we know
there are others who are prepared to take the in-
itiative if the further development of the facts
indicate there is a clear case on which to act.

Asked whether there icoiiJd not he some delay
in bringing abo^it the implementation of the Rio
Treaty, Mr. Dulles replied:

It would be possible to get very quick action by
the consultative organ of the American States.
They can be called into a meeting almost on 24-
hour notice. I would not anticipate any difficulty
if that event occurred in having very jiroinpt and
decisive action taken by the consultative organ.

874

Oeparfmenf of Sfa/e Bulletin

Understanding Inter-American Economic Problems

hy Merwin L. Bohan

U.S. Representative on the Inter- A

?nerican Economic and Social Council-

In two days, on May 22, we will be celebrating
National Maritime Day. This clay has been set
aside by our Nation to pay honor to the American
Merchant Marine. As President Eisenhower
stated in his proclamation of Maritime Day : -

The American Merchant Marine has continued to aid
in developing peaceful commercial relations with the na-
tions of the free world ; and through the prompt delivery
of supplies and equipment to our armed forces overseas
. . . has effectively lielped to strengtlien the forces of
freedom throughout the world.

Because of the nearness of Maritime Day and
because shipping is one of our country's oldest
industries, as well as a vital factor in our national
security, I would like to talk a little about the
maritime policy of the United States and particu-
larly its application to Latin America.

The maritime policy of the United States is
clearly enunciated in the Merchant Marine Act
of 1936. If we eliminate all the legal phraseology
which is an essential — if sometimes confusing —
part of all legislation, our maritime policy cx)n-
sists of the following basic points :

One, we believe it is essential for both the na-
tional defense and the development of our for-
eign and domestic commerce that we have a mer-
chant marine which is capable of carrying our
domestic water-borne commerce.

Two, we believe it is essential, for the same rea-
sons, that we have a merchant marine which is
capable of carrying a substantial portion of our
water-borne export and import foreign commerce ;
and

Three, we believe it is essential that we have a
merchant marine which is capable of swiftly and
effectively serving as a naval and military auxil-
iary in time of war or national emergency.

'Excerpts from an address made before the Propeller
Club, the Foreign Trade Association of Southern (Cali-
fornia, and the Los Angeles Traffic Managers Conference
at Los Angeles on May 20 (press release 264 dated
May 19).

' Xo. 30.55 ; 19 Fed. Reg. 2797.

June 7, 1954

That is our policy. It is simple, straightfor-
ward and closely linked to the national defense
and economic development needs of our country.

The carrying out of this policy is the responsi-
bility of several government agencies including
the Department of State. We in the Department
are fully and constantly aware of this responsibil-
ity. We are also very much aware of the ditti-
culties which are confronting U.S. shipping todav
and of the need for vigorous and intelligent action
if we are to maintain the competitive position of
United States vessels in foreign trade.

U.S. shipping in Latin America today faces a
niultitude of problems which are diverse and
highly complex in nature. However, I do not
think it is an unwarranted oversimplification to
state that these problems result, in the main, from
two basic factors. One is the desire of many of
the other American Republics to develop and ex-
pand merchant shipping as an aspect of their
national policy. The other, and this is particularly
pertinent in Latin America, is the shortage of dol-
lars and the desire to conserve those dollars wliich
are available.

The development of maritime programs by
Latin American nations since World War II has
been at an accelerated pace. Impetus for such
development resulted from many factors— in some
cases from the fact that during the war we were
forced to divert vitally needed cargo ships from
the Latin American trade to carry our troops and
sui)plies to the combat areas and, as a result, some
difficulty was experienced in meeting the total
shipping requirements of the other American Re-
publics. In other cases maritime programs were
a logical and predictable outgrowth of the eco-
nomic progress of the area. In still other cases
the desire to conserve foreign exchange was a
motivating factor.

Wliatever the reasons for the development of
shipping programs, the facts are that those pro-
grams were pursued vigorously from tlie time of
their inception, and today several Latin American
countries are firmly established in international

875

shipping, particularly with the United States.
Argentina, Brazil, and Chile have all increased
their merciiant fleets substantially. In addition,
several other countries have embarked on joint
shipping ventures. This has, naturally, resulted
in much keener competition for United States ship-
ping companies operating in Latin America,

I think it goes without saying that American
business of all kinds has welcomed competition.
And I think it also goes without saying that the
U.S. sliipping interests operating in Latin America
today are not complaining about competition from
foreign flag carriers. They are complaining about
discriminatory practices, and I believe that when
free competition is hampered by discriminatory
practices tliis does become a matter of concern to
our government.

Eliminating Discriminatory Practices

With other government agencies, and with rep-
resentation of the shipping industry, the Depart-
ment has been diligently working to eliminate
discriminatory practices. And we have made
some progress. One of tlie most heartening de-
velopments has been the success wliich we have
achieved in various aspects of this problem as a
result of negotiations with Colombia, Venezuela,
and Brazil. The same is true, to a lesser extent,
with Argentina and i^artial progress has also been
made with Chile.

We are making progi-ess but we are doing so
slowly. Discrimination still continues and only
sustained, vigorous representations can, with
time, eliminate such discrimination.

When we meet in Rio de Janeiro next November
with the other American Republics to discuss our
nuitual economic problems, we shall continue our
efforts to assure competitive opportunities for U.S.
business. I think tliat tlie system of inter- Ameri-
can conferences and meetings is a mechanism
which is still not too well understood or appreci-
ated in the United States. And I also think that
such understanding and appreciation by all of us
is essential if the inter-xVmerican system is to con-
tinue as a model of international relations. There-
fore, I would like to spend a little time telling you
about the latest and in some ways the most sig-
nificant of the inter-American conferences — the
Caracas conference from which I recently
returned.^

In a nutshell, Latin America wants : (1) United
States assistance in assuring "fair and equitable"
prices for their raw materials; (2) assurances of
stable tarifl's and an expanding United States mar-
ket for their products; (3) financial and technical
cooperation in their economic development. It is

' For a report on the Conference, see Buixetin of Apr.
26, 1954, p. 634.

clear that we cannot wholly satisfy these aspira-
tions. In the case of prices, we have a mutual in-
terest in satisfactory price relationships since this
means prosperity for all concerned, but we cer-
tainly do not have the resources even to consider
price-parity formulas or plans involving vast
financial commitments. We can assist in eti'orts
to diversify the economics of the Latin American
countries, thus lessening dependence on one or a
few export products and possibly take other meas-
ures to mitigate the effects of price fluctuations.
However, tlie best assurances we can offer of rela-
tive stability and "fairness" of prices is to main-
tain the high level of U.S. economic activity which
is the major factor in raw material demand. In
the field of commercial policy we must resist the
arguments of those friends of ours in Latin Amer-
ica who hold tliat only we should reduce barriers
to world trade and that they should be permitted
to maintain any nnd all obstacles to the expansion
of such trade. On the other hand, we are hopeful
that by the time of the Rio conference M-e will be
in a position to define our commercial policy ob-
jectives and give reasonable assurances regarding
its continuity.

It is in tlie field of economic development where
the greatest possibilities exist for the formulation
of a dynamic inter- American policy. There are a
number of obstacles, none unsurmountable, which
complicate this problem of policy formulation.
Latin America comes honestly by a heritage of
state intervention in economic affairs, a heritage
coming down from Spanish colonial times. In
addition, mild to severe cases of economic na-
tionalism have afflicted large parts of the area and
given rise to a number of dangerous phobias which
make the rational development of resources at
times difilcult and complex and at others, impos-
sible. Offhand, I can think of several situations
where the unfounded fear of foreign private par-
ticipation is holding back tlie development of
certain important countries and making it impos-
sible for them to raise effectively the standard of
living of their people.

U.S. Reliance on Private Enterprise

Against this backgi'ound our own experience
tlirougliout the 19th century, when tlie U.S. was
going through a period of economic development
in many respects similar to that taking place to
the south of us today, led to the conviction that
domestic private enterprise plus the helping hand
of foreign private capital and know-how was the
way to build a stable and enduring economic struc-
ture. Indeed, our continued experience during the
present century has only confirmed in our own
minds that the way of economic life which goes by
the name of private enterprise is the sound and
true gospel. Certainly one of our deepest convic-
tions is that governments, save in unusual situa-
tions, should stay out of business, whether as pro-

876

Department of State Bulletin

ducers, manufacturers, transporters, or marketers.
Our own incursions in these fields liave not always
been too successful, while we have by no means lost
sight of the somewhat unha^Dpy experiences of cer-
tain highly developed and industrialized democ-
racies which have experimented with socialism.
And certainly Iron Curtain countries have given
the best possible example of how collectivism can
result in sub-standard levels of living. It would
appear that state enterprise, by its nature, is in-
herently vulnerable to pressures which, while
often admirable in aim and purpose, are not con-
ducive to profitable, efficient, and competitive op-
erations. Thus it is understandable that the U.h.
is reluctant to participate in programs abroad
under whicli governments would engage directly
or indirectly in industries into which private en-
terprise— either domestic, foreign, or mixed — is
willing to venture.

Placing, as we do, our main reliance on private
capital as the j^rimary source of foreign assistance
in the economic development process, the basic
conditions favorable to its attraction are of great
importance. Some of these conditions rely upon
the control of government while others are subject
to the beneficent influence of sound policy.

The more important of these conditions include
guarantees of property and contract rights.
While the opportunity to earn a reasonable return
on investment is, of course, the prize for which
jjrivate enterprise strives at home and abroad, it
generally requires no government guarantee of a
reasonable return excej^t in the case of public utili-
ties or other regulated enterprise, but it does de-
mand assurances that governments will not take
actions which will make a reasonable return
impossible.

What I have just said should not be interpreted
as indicating that Latin America is against private
enterprise. The proponents of private initiative
are a growing and powerful force in all the major
countries of the continent and in some the develop-
ment process is passing through a period not un-
like that to which we refer in our own country
as the Era of Manifest Destiny. WHiat I do wish
to convey is that in all but a very few of our sister
Kepublics, there is a tendency to be highly selec-
tive as concerns foreign private capital invest-
ment; to impose burdensome or pi-ohibitory re-
strictions on certain fields of investment; and
under popular pressure to promote the economic
development processes or because of nationalistic
complexes to engage directly in a number of fields
of economic activity in which private initiative
has a proven record of accomplislunent.

Need for Greater Economic Understanding

There is thus an urgent need for greater eco-
nomic understanding between us. If we are to

achieve that gi-eater understanding, all of us will
have carefully to reexamine our positions and our
policies. Many of our sister Republics can profit-
ably re-assess their attitudes towai'd the part
that foreign capital and initiative could play in
their economic development, while the U.S. can
just as profitably reexamine and more clearly de-
fine certain of its policies in the foreign economic
field. This reevaluation can be of distinct bene-
fit to all concerned, for pi'esent trade and invest-
ment figures will be looked back upon as imim-
pressive if economic expansion in Latin America
continues at the present rate. For the progress of
this area in the postwar period has been little short
of phenomenal ; total jn'oduction at constant prices
has doubled in the last two decades; population
has increased by 42 percent; and output per capita
has grown at an amiual rate of 214 percent. The
value of manufacturing has gone up 70 percent
in the last 7 years, and today industrial centers
such as Sao Paulo and Mexico City make the classi-
fication of several of our neighbors as "underde-
veloped" a constantly greater misnomer.

U.S. private investment has flowed into Latin
America since the end of the Second World War
at an average rate of around $250 millions per
year, and in addition, American companies have
reinvested earnings at the average rate of approxi-
mately $190 millions per year.

The U.S. Government has supplemented this
flow of private capital. During the period since
the Second World War the Latin American coun-
tries have been i-eceiving loans through the Inter-
national Bank, of which we are a member, and
our own Expoit-Import Bank on a net basis (loans
less repayment) at the rate of $93 million per year,
of which the Export-Import Bank has provided
about 75 percent.

All of this foreign assistance, while essential for
the financing of the foreign currency component
of the economic development process, is, after all,
only a small part of the total investment being
made today in Latin America, since it is estimated
that Latin America is financing between 90 and 95
percent of its economic development from domes-
tic resources.

This is the bright side of the coin. The other
side is that inflation has taken too great a toll of
living standard gains and there is a crying need for
sounder monetary and fiscal policy ; population is
increasing at a rate higher than the food supply
and there are urgent needs in the fields of ex-
port industries, health and educational facilities,
and other measures which will lead to the estab-
lishment in each of the Latin American countries
of strong, self-reliant, and durable national econ-
omies.

We can and will play an important role in the
years to come, but I am sure that we all agree
with the words expressed recently by Assistant
Secretary Holland, when he said:

June 7, 1954

877

As great as is our desire to contril)Ute effectively to the
establishment of strong and self-reliant economies else-
where in this hemisphere, the priinary responsibility in
that field lies upon the nations involved. It is primarily
through their foresight, industry, and self-discipline that
this goal will be achieved.''

I wlio have lived for the better part of 50 years
in tlie hospitable hinds to the south of us have no
doubt of their ability to achieve that goal.

TEXT OF APPLICATION

May 22, 1954

U.S. Asks Approval for
Construction of Libby Dam

DEPARTMENT ANNOUNCEMENT

Press release 2S7 dated May 27

On May 22, 1954, Secretary Dulles signed a new
application to the International Joint Commis-
sion for an order approving the construction and
operation of a multiple purpose dam on the
Kootenai River about 15 miles upstream from
Libby, Mont.

A previous api)lication, submitted to the Com-
mission on January 12, 1951,^ was withdrawn on
April 8, 1953," when local problems developed re-
garding the location of roads, railroads, and other
facilities. A new site about 4 miles upstream
from the original location has now been selected
as it will reduce the magnitude of the problems
involved.

The new project will store 5,985,000 acre-feet
of water, approximately 1 million acre-feet of
which would be in Canada. The estimated cost
of the project is $263,300,000. Construction of
the dam by the Army engineers was authorized by
Congress in 1950, and planning funds of $520,500
have been appropriated for 1954.

The reservoir would extend 53 miles upstream
in the United States to the boundary and 42 miles
into Canada and would be one-half to one and one-
half miles wide. It wovdd occupy approximately
47,800 acres, of which 30,200 are in the United
States and 17,600 are in Canada.

The dam would be a concrete gravity structure
risinw 410 feet above bed rock and about 2,700
feet long at the crest of the dam. It would pro-
duce initially 600,000 kilowatts with an ultimate
installation of 800,000 kilowatts. It would make
possible the generation of approximately 90,000
additional kilowatts in Canada on the Kootenai
River.

' Ibid., May 17, 1954, p. 770.
° Ibid., Feb. 5, 1951, p. 230.
" Ibid.. Apr. 27, 1953, p. 611.

The International .Joint Commission,

Washington, D. C, United States of America; and
Ottawa, Ontario, Canada.

Sirs :

1. The Government of the United States heieby submits
to the International Joint Commission, under the provi-
sions of Article IV of the Treaty of January 11, 1909,
between the United States and Great Britain, this applica-
tion requesting that the Commission give consideration to
such effects as the construction and operation of a dam
and reservoir, herein referred to as "Libby Dam", on the
Kootenai ' River near Libby, Montana, may have on levels
or stages of the said Kootenai River at and above the in-
ternational boundary between the United Slates of Amer-
ica and Canada, and the consequences thereof ; and that
the Commission enter an appropriate order in the premises,
expressly approving the construction and operation of the
said Libby Dam and reservoir.

2. On .January 12, 1951 an application was forwarded
to the International Joint Commission relating to a similar
project on the Kootenai ' River near Libby, Montana.
Hearings on this application were held by the Commission
and the possibility of proceeding with that project re-
ceived very careful consideration l)y the Commission. On
account of domestic questions which arose the applica-
tion was withdrawn from the Commission on April 8,
1953 in order that they might be settled in regular chan-
nels without being intermingled with the international
aspects of the problem.

3. Under the Flood Control Act of 19.50 (Public Law
51G, 81st Congress, 2d Session), approved 17 May 1950,
a project designated as "Libby Dam, Kootenai River,
Montana" was "adopted and authorized to be prose-
cuted under the direction of the Secretary of the .Vrmy
and the supervision of the Chief of Engineers." Attached
hereto and marked Anne.x A ' is a statement, received by
the Secretary of State with a letter dated May 5, 1954
from the Secretary of the Army, containing "data on
Libby project to accompany 1954 application to the Inter-
national Joint Commission." The Secretary of the Army
has requested the Department of State to present it with
this application to your Commission.

4. Particular attention is invited to the following Im-
I>ortant aspects of this Libby Dam Project :

a. The Committee on Commerce of the United States
Senate on September 24, 1943 adopted a resolution which
reads In part as follows :

"Resolved by the Comnuttee on Commerce of the United
States Senate, That the Board of Engineers for Rivers
and Harbors, created under Section 3 of the River and
Harbor Act, approved June 13, 1902, be, and is hereby
requested to review the reports on Columbia River and
Tributaries submitted under the provisions of House
Document Numbered 308, Sixty-ninth Congress, first
session, as authorized liy the River and Harbor Act of
January 21, 1927, with a view to determining whether
any modification of existing projects or recommended
comprehensive plans of improvement should be made at
tills time."

b. I'ursuant to this authorization the United States
proposed that the cooperation of the Government of
Canada in comprehensive studies of the Columbia River
Basin be obtained through a reference to the International
Joint Commission under Article IX of the Boundary
Waters Treaty of 1909. The reference to this Commission

' Spelled Kootenai in the United States, Kootenay in
Canada. [Footnote in the original.]
' Not printed.

878

Departmenf of State Bulletin

by the two Goverameuts under date (if Jlareli 0, 1044
resulted and exhaustive studies of the Columl)ia River
Basin were made by the International Coluuiliia River
Engineering Board.

c. On Novenil)er 1, ll)r>U. the International Colunihia
River Engineering Board submitted to your Commission
a report entitled: "Interim Report on Kontenay River".
The report contained the following reeonnuendation :

"In view of the foregoing and of the reference directive
the r.oard recommends that the normal forebay eleva-
tion of 2,4.")9 feet above mean sea level be approved for
the Libby project . . ."

d. The reservoir would be approximately !)."> miles
long and from one-half to one and one-half miles wide.
It would extend 42 miles Into Canada approximately to
the Bull River dam site, which is about 5 miles upstream
from Wardner, British Columbia. With a full Libby
reservoir the depth of water at the international boundary
would be 150 feet. The reservoir will occupy approxi-
mately 47,800 acres, of which 17,600 acres are in Canada.
In the Canadian portion, the reservoir would flood a few
small coiiimuiiities and farms, and some secondary roads.
In addition, it would necessitate the raising' of the Cana-
dian Pacific Railway Crows Nest line and No. ^.^ liighway
for shurt distances. The reservoir would have a gross
storage capacity of 5,985,000 acre-feet, of which approxi-
mately 1.000,000 acre-feet would be in Canada. The
usable storage capacity at 50 jjercent drawdown (172
feet) would be 5,010.000 acre-feet, of which 1,000,000
acre-feet would be in Canada.

e. The Dam as currently planned would be a straight
concrete gravity structure rising about 410 feet above
bed rock. It would be about 2,700 feet long at the top
and 1,200 feet long at tlie base. The head provided for
hydroelectric development at the site would be o44 feet
at normal full ijool elevation. An overflow spillway in
line with the existing river channel, equipped with gates,
would have a capacity of 280,000 cubic feet per second.
For flood control operation of the dam a sufficient number
of sluices would be provided to permit, when combined
with the flow through three of the powerhouse units, a
total release of 00,000 cubic feet per second when the
power pool is full.v drawn down.

f. The powerhouse would lie located at the down-
stream toe of the dam near the left abutment. The initial
installation would consist of six generating units rated
at 100,000 kilowatts each, or a total of (J00,()00 kilowatts.
The ultimate installation would consist of eight .such
units, or a total installati<in of 800,000 kilowatts.

g. The estimated cost of construction is $203,321,000
of which approximately $7,020,000 is the estimated cost
of providing the portion of the reservoir in Canada, and
approximately $256,301,000 is the cost of the dam and the
portion of the reservoir in the United States.

h. The project would provide much needeil flood con-
trol and power benefits in both Canada and the Uiuted
States.

5. Accordingly, the Government of the United States
asks that the International .loint Commission approve the
construction of the Libby I 'am and tlie proposed method
of ojieration of the dam and reseivoir to elev;ition 2,459
feet above mean sea level. It is re<|uested that tlie Com-
mission, in accordance with Article VIII of the Treaty
of January 11, 1900. uuike its order of appmval con-
ditional upon suitable and adecpiate provision being made
for the protection and indemnity of all interests on the
Canadian side of the boundary which may be injured
thereby in accordance with the practice of the Commis-
sion in similar cases in which it has approved applications
of this character.

6. This conmuinication will, it is believed, be found
by the Commission to contain all essential averments
regarding the facts upon which this apiilication is based
and the nature of the order of approval desired, and to

June 7, 1954

be in conformity with the provisions of Paragraph (a)
of Rule 6 and with Rule 7 of the Commission's Rules of
Procedure.

7. In submitting this apiilication to the Commission,
the hope is expressed, on behalf of the United States,
that in view of the importance of the matters involved,
the Commission will expedite its consideration thereof
and its action thereon in order that the project works
and the plan of operation thereof may receive the approval
of the Commission with the least possible delay.

8. Attached to Annex A of this application and made
a part thereof are the maps and drawings showing the
situation and extent of the project works.

The required additional copies of the application are
being forwarded to you under separate cover.
Very truly yours.

John FosTfaj IiTrTjj';8

Visit of Turkish Prime Minister

Neios Conference Statement by Seci^etary Dulles

Press release 281. dated May 25

Prime Minister Adnan Meiuleres of Turkey will
visit the United States from June 1 to June 4.
The Prime Minister's visit here will be primarily
for the purpose of discussing with U. S. officials
certain economic and financial matters of mutual
interest to the T'nited States and Turkey.

German Interzonal Travel

Folio Lrinff are the texts of letters e.rrhanged hy
Ambassador James B. Co7umt, U.S. High Com-
missioner for Germany, and Vladimir Sem^no-v,
Soviet High Commissioner.

MR. SEMENOV TO AMBASSADOR CONANT,
APRIL 17

(Translation]

I acknowledge i-eceipt of your reply of March
17 to my letter of March 6,^ in which it was pro-
po.sed by me that measures be taken in the very
near future by means of agreement between cor-
responding German authorities of East and West
Germany to create two all-German committees:
One for economic and administrative matters, and
the other for cultural matters. I deem it neces-
sary to draw your attention to the fact that the
all-German committees mentioned in my letter
couhl e.xamine and decide questions of interrela-
tionships between East and "West Germany, in-
cluding problems of passenger and freight traffic

' For texts, see Bui-letin of Apr. 5, 1954, pp. 509, 510.

879

across the demaixation line, the circuhition of
printed matter, and others, and thus facilitate a
rapprochement between East and West Germany.

In your letter of reply, you in essence avoid
these proposals, referrinp; to the fact that ques-
tions of the movement of citizens, circulation of
the press in Germany, etc., "must continue closely
to concern the four occupying powers until such
time as the reunification of Germany takes place."
Meanwhile, it is impossible to agree with such
an interpretation of the rights of the occupying
powers in Germany. The circumstance that no
peace treaty for the reunification of Germany has
been agreed to among the four occupying powers
by no means signifies that the occupying authori-
ties, not having settled with the German people,
nor with the fact that on the territory of Germany
at the present time there exist the government of
the German Democratic Republic and the govern-
ment of West Germany, can ignore the right of
the German people freely to determine their in-
ternal affairs according to their own judgment,
without foreign interference.

From your letter, it is evident that you depart
from those principles set as the basis for the rela-
tionships of the occupying authorities of the
U.S.xV., and of England and France also, with
the German authorities and inhabitants of West
Germany. These principles are well-known, as
far as they are set forth in the "occupation statute''
today in effect in West Germany, and also in the
Bonn Agreement,' which is nothing but another
aspect of the "occupation statute" signed among
the governments of the U.S.A., England, and
France and the West German government of Ade-
nauer. In conformity with these documents, the
occupying authorities of the three Western
powers in reality keep in their hands for at least
a 50-year term tlie broadest rights of interference
in the internal affairs of West Germany.

The Soviet authorities cannot be equated with
the regime tied to West Germany by the occupying
authorities of the U.S.A., England, and France,
as such a regime is unjust with respect to the Ger-
man people and its national rights, and damaging
the interests of upholding peace in Europe, es-
pecially if one takes into account that the Bonn
agreement is tightly bound to the Paris Agree-
ment,'' in accordance with which West Germany
is transformed into a militaristic state, correspond-
ing with the plans for creating the so-called
European Defense Community.

In connection with this I take the liberty of
drawing your attention to the declaration of the
Soviet Government of March 26, in which it was
demonstrated that the Soviet Union establishes

' I. e., the contractual agreements with the Federal Re-
public of Germany, signed at Bonn on May 26, 1952.

' I. e., the treaty establishing the European Defense
Community, signed at Paris on May 27, 1952.

880

with the German Democratic Republic the same
relations as with other sovereign states and that
the German Democratic Republic will be fi'ee to
decide, by its own judgment, its internal and ex-
ternal affairs, including questions of interrelation-
ships with West Germany. In the declaration, it
was also pointed out that "the existence of the
'occupation statute,' established for West Germany
by the United States of America, England, and
France, is not only incompatible with the demo-
cratic principles and national rights of the Ger-
man people but, in the present circumstances im-
pending the rapprochement between West and
East Germany, is one of the obstacles on the road
to tlie national reunification of Germany."

All the foregoing sufficiently explains why the
Soviet side, as before, considers it necessary to
take measures to create the aforesaid all-German
committees in the very near future by means of
agreement between corresponding agencies of
West and East Berlin.

So far as the question of West Berlin, touched
upon in your letter, is concerned, the American
occupying authorities up to now have taken no
steps to liquidate criminal organizations situated
on the territory of West Berlin and carrying on
their injurious work against the German Demo-
cratic Republic, although, as is known, that very
circumstance has obliged the government of the
Gdr to put into effect some measures to control
traffic on the territory of the Gdr.

AMBASSADOR CONANT TO MR. SEMENOV,
MAY 24

Press release 27S dated May 24

I acknowledge receipt of your reply, dated
April 17, 1954, to the second letter I had sent
you, on March 17, 1954, putting forward positive
suggestions for the elimination of unjustifiable
obstacles which prevent freedom of movement for
Germans between the different parts of Germany.

In my letter of March 17, 1 drew your attention
to unilateral measures which the authorities in
the Soviet Zone could tliemselves take to this end
without the need for any further consultation be-
tween us. I regret to note that no action has so
far been taken by the authorities in the Soviet
Zone to put these measures into effect and that
j'ou do not even refer to them in your reply. I
further regret that you have made no response
to my suggestion that arrangements should be
made which would enable discussions to begin
between German technical experts on those pro-
posals in my letter of February 22 * on which con-
sultation is required.

Instead you have invoked the Soviet Govern-
ment's statement of March 26 regarding the sta-

' BiTLLETiN of Apr. 5, 1954, p. 508.

Department of State Bulletin

tus of the German authorities in tlie Soviet Zone
and you have once again repeated the Soviet pro-
posal, which has ah-eady been rejected by my
Government, for the establishment of "all-Ger-
man Committees".

I must make it clear to j'ou that my Govern-
ment still regards the Soviet Union as the power
responsible for the Soviet Zone of Germany. My
Government does not recognize the sovereignty
of the East German i-egime. In this connection,
I take the opportunity of drawing your attention
to the declaration made on April A by the High
Commissioners of the United Kingdom and
France and myself,'^ a copy of which I enclose.

You have also repeated your charges about al-
leged criminal organizations which are said to
be located in West Berlin. These charges are,
as you have already been informed, without
foundation. Your letter of April 17 therefore,
since it introduces clearly unacceptable conditions
and unfounded accusations, does not make a pos-
itive contribution to the problem of removing the
restrictions on freedom of movement for the Ger-
man people, and serves only to accentuate the
present division of Germany.

So long as this division exists it remains the
duty of the four occupying powers to do every-
thing in their power to lessen the hardships re-
sulting from it. I do not intend to be diverted
from the constructive proposals I have already
made to you and remain ready to take all the
measures indicated in my letter of March 17. I
hope therefore that, in order that we may make
genuine progress in matters which ai'e of real
importance to the German people, you will accept
my proposals without further objections.

Czechoslovak Protest Concerning
Crusade for Freedom Rejected

Press release 277 dated May 24

Following is the text of a note to the Czecho-
slovak Government delivered on May ^4- ^V t^^^
American Eiiibassy at Prague to the Ministry of
Foreign Affairs in reply to the latter'' s note of May
J, IBoJf.^ concerning the release of balloons hy the
Crusade for Freedom:

The American Embassy presents its compli-
ments to the Czechoslovak Ministry of Foreign
Affairs and has the honor, upon instructions of
the U. S. Government, to refer to the Ministry's
note of May 5, 1954, concerning the arrival of
balloons in Czechoslovakia.

The U. S. Government is informed that the
Crusade for Freedom Committee has sent mes-

» lUd., Apr. 19, 1954, p. 588.
" Not printed.

sages to the people of Czechoslovakia by the ve-
hicle of balloons. The Crusade for Freedom, an
organization of private citizens, is supported by
millions of Americans and expresses the aspira-
tions of the American people for the freedom of
all peoples. The messages, it has been learned,
transmitted news items and discussed concrete
goals in which the Czechoslovak people would be
interested.

The operation was undertaken by this private
organization and neither the U. S. Govermnent
nor the U. S. authorities in Germany were in-
volved. The U. S. Government rejects the protest
of the Czechoslovak Government which is with-
out foundation.

As has been previously suggested, the United
States holds firmly to the view that there must
exist unobstructed communication between peo-
ples if nations are to live in peace and freedom
with one another. When a government violates
this principle by trying to insulate its people from
the world of ideas without, it is only natural that
efforts will be made, both inside and outside that
country, to break thi'ough the insulation. The
choice of balloons as a means of communication in
the present instance indicates that the Czechoslo-
vak Government continues to deprive the Czecho-
slovak people of the possibilities of free contact
with other peoples, the free exchange of ideas
and the free reception of uncensored news.

It is understandable that the American people
would seek by such means as are available to main-
tain contact with the people of Czechoslovakia
with whom they had formerly enjoyed free as-
sociation and with whom they share many com-
mon traditions and beliefs. The American people
take a profound interest in the welfare and future
of the people of Czechoslovakia. The leaflets
borne to Czechoslovakia express the interest of
the American public in seeing the welfare of the
people there improved through the attainment of
a series of goals. Notwithstanding, the Czecho-
slovak Government claims that these leaflets were
subversive and inciting. It consequently appears
that in the eyes of the present regime in Czecho-
slovakia discussion of concrete steps to better the
lot of the common man in that country is sub-
versive in nature.

If the Czechoslovak Government desires that
this form of communication between peoples not
be utilized, it lies within its power to remove the
need for such media by opening the barrier to
free access to the people of Czechoslovakia. The
United States is convinced that free contact be-
tween peoples everywhere will contribute greatly
to support world peace in which the Government
of Czechoslovakia professes continuing interest.
The U. S. Government would have no basis for
interfering with attempts bj' private American
organizations to establish connnunication with the
people of Czechoslovakia and to convey to them
the interest of the American people in their fate.

June 7, 7954

881

Accreditation of Latvian
Charge d'Affaires

Press release 274 dated May 24

Secretary Dulles on May 2^ received Arnolds
Spekke, loho presented his letter of appointment
as Charge d' Affaires of_ Latvia in Washington.
Dr. Spekke, a career minister in the Latvian diplo-
matic service, becomes chief of the Latvian diplo-
matic mission in the United States in succession
to the late Jules Feldmans, who died on August
16, 1953. The texts of the remarks exchanged by
Dr. Spekke and the Secretary follow.

Remarks of Dr. Spekke

I have the honor to present to you the Letters
of Mr. Charles Zarine, Latvian Minister in Lon-
don, and bearer of the Special Emergency Powers
of the last Legal Government of Latvia, accredit-
ing me to you as Charge d'Atfaires of Latvia in the
United States.

It is a great honor and pleasure for me to repre-
sent the Independent Republic of Latvia in this
great country, the United States of America. I
have come to the United States with a sincere
desire and a firm determination to continue the
work of my predecessor, the late Minister Jules
Feldmans, who was devoted to the task of bringing
closer to the American Nation the problems of the
people of Latvia, who are presently subjugated
by the Soviet Union.

Before assuming my duties in Washington, at
this trying and difficult time in the long history
of the Latvian people, I wish to express to Your
Excellency, to the Government, and to the people
of the United States of America my undying
gratitude for their moral support and for the
traditionally unswerving stand of the United
States in favor of the rights of the oppressed na-
tions, which has become a beacon of light and a
source of strength and inspiration to mankind.

Mr. Secretary, I beg you to accept the sincere
good wishes that Mr. Zarine, bearer of the Latvian
State emergency powers, expresses through me, to
which I join my own best wishes, for Your Excel-
lency's personal happiness. I also wish to express
to you on this occasion our hope for the preserva-
tion of our Christian civilization and the mainte-
nance of the dignity of free men and all peoples of
good will.

Remarks of Secretary Dulles

I have received from your hands the letters of
April 21, 1954, in which Mr. Charles Zarine, Min-
ister of Latvia in London and bearer of the
special emergency power of the last independent
Government of the Republic of Latvia, presents

882

you to me as Charge d'Affaires of Latvia in the
United States. You come in succession to the late
Mr. Jules Feldmans whose distinguished and
devoted services in representing his country to
the United States were cut short by his untimely
death last year.

In accepting you as Chief of the Latvian Mis-
sion in Washington in the capacity of Charge
d'Aifaires, this Govermiient reaffirms its whole-
hearted support for the Republic of Latvia and
for the realization of the principle, expressed in
the Atlantic Charter, that sovereign rights and
self-government shall be restored to those who
have been forcibly deprived of them.

I am confident that in carrying on the work to
which your j^redecessors gave themselves unspar-
ingly in defense of the catise of a free Latvia,
you will enjoy, as they did, the dedicated support
of Latvians everywhere. I am happy to welcome
you to this countrj^ and to wish you every success
in undertaking your duties here. You may be
assured that my associates in the Department and
I will always be ready to help you in every way we
can.

I would ask you to thank Minister Zarine for
his exjiression of good wishes, which are warmly
reciprocated, on behalf of the Latvian nation and
himself for the welfare and prosperity of the
United States.

TREATY INFORMATION

The Genocide Convention

Following is the text of a summary of the U.N.
Convention on the Prevention and Punishment of
the Crime of Genocide, prepared hy the Depart-
ment of State, ivhich Thruston B. Morton, Assist-
ant Secretary for Congressional Relations, sent on
May 10 to Senator A lexander Wiley at the latter''s
request : ^

The United Nations Convention on the Preven-
tion and Punishment of the Crime of Genocide
was adopted by the United Nations General As-
sembly on December 9, 1948. It has entered into
force for 43 countries. The United States has not
ratified the convention and is not a party to it.
Accordingly, its provisions in no way bind the
United States or its citizens.

' Reprinted from Cong. Rec. of May 19, 1954, p. 6432.

Departmenf of State Bulletin

Background

On December 11, 1946, the fii*st session of the
United Nations General Assembly unanimously
adopted a resokition condemning genocide as a
crime under international law.^ That resolution
declared that punishment of the crime of genocide,
the denial of the right to existence of entire human
groups, is a matter of international concern. It
reconunended international cooperation with a
view to facilitating the prevention and punish-
ment of genocide and requested the Economic and
Social Council of the United Nations to undertake
the necessai-y studies to draw up a draft conven-
tion on the subject.

Pursuant to this resolution, a special United
Nations committee met in 1948 and prepared a
draft convention on genocide. This draft was
reviewed by the Economic and Social Council and
in the fall of 1948 was transmitted to the General
Assembly. The legal committee of the General
Assembly debated the matter and the convention,
was adopted by imanimous vote of the General
Assembly on December 9, 1948.

vention but have failed to ratify it are under no
legal duty to execute its provisions or to carry out
in any way the obligations created by it.

Entry Into Force

The Genocide Convention entered into force,
pursuant to its terms, on January 2, 1951, the 90th
day following the date of deposit of the 20th in-
strument of ratification or accession. It became
effective only as to those countries which had de-
posited the necessary ratifications or accessions.
Tlie convention is presently in effect for the follow-
ing 43 countries : ^

Australia, Belgium, Brazil, Bulgaria,^ Cambo-
dia, Canada, Ceylon, Chile, China, Costa Rica,
Cuba, Czechoslovakia,'' Denmark, Ecuador, Egypt,
El Salvador, Ethiopia, France, (iuatemala, Haiti,
Honduras, Hungary,^ Iceland, Israel, Italy, Jor-
dan, Korea, Laos, Lebanon, Liberia, Mexico, Mon-
aco, Nicaragua, Norway, Panama, Philippines,*
Poland,^ Rumania,* Saudi Arabia, Sweden, Tur-
key, Viet-Nam, Yugoslavia.

Signature of the Convention

The Genocide Convention was opened for signa-
ture on December 11, 1948. Pursuant to its terms,
it remained open for signature until December 31,
1949 and subsequently for accession by nations
which had not signed. It was signed on behalf of
43 nations, including the United States. Of that
number 27 have since ratified the convention and
thus become parties to it. Sixteen other nations
have become parties by deposit of instruments of
accession.

The act of signature of the Genocide Convention
imported neither a legal nor a moral obligation to
ratify the convention. Signature of a treaty is
merely the last formal step between completion of
successful negotiations and submission of the doc-
ument for appi'oval and ratification by the com-
petent authorities of the signatory states. Signa-
ture of a treaty on behalf of a state creates no
obligation to rati fy the treaty.

The terms of the Genocide Convention require
that it be ratified in order to become effective after
signature. It cannot be made effective as an execu-
tive agreement. TJie second paragraph of article
XI specifically provides:

The preseut conveution shall be ratified, and the Instru-
ments of ratification shall be deposited with the Secretary
General of the United Nations.

Consequently, a signatory government is not
bound by the convention until it has deposited its
instrument of ratification and the convention has
been brought into force with respect to it. Gov-
ernments which have signed the Genocide Con-

The United States Has Not Ratified tlie
Genocide Convention

The convention was signed on behalf of the
United States on December 11, 1948, by Ernest
A. Gross, acting under a full power issued by the
President authorizing him to sigir a convention for
the prevention and punishment of the crime of
genocide, "the said convention to be transmitted
to the President of the United States of America
for his ratification, subject to the advice and con-
sent thereto of the Senate of the United States of
America."

The President transmitted the convention to
the United States Senate on June 16, 1949, for ad-
vice and consent to ratification. It was referred to
the Foreign Relations Committee and ordered to be
printed.^ Public hearings were held in January
and February of 1950 before a subcommittee, and
the convention was thereafter discussed in execu-
tive sessions of the Foreign Relations Committee.
After nearly 6 years the Genocide Convention is
still pending in the Senate Foreign Relations
Committee without having received the recom-
mendation of that committee.

In accordance with the statement of the Sec-
retary of State before the Senate Judiciary Com-
mittee on April G, 1953, the Department of State is
not pressing for ratification of the Genocide Con-
vention.*

'General Assembly Resolution 96 (I), Dec. 11, 1946,
U.N. Doc. A/64/Add. 1.

' The U. S. S. R. deposited its ratification, with reserva-
tions, on May 3, 10.")4. It will become efilective on August
1, 19,54, the 90th day after deposit.

* With reservations.

° Senate Executive O, 81st Cong., 1st sess.

'Hearings on S. .7. Kes. 1 and 43, p. 886. [See also
Bulletin of Apr. 20, 1953, p. 592.]

June 7, 1954

883

Summary

The United States Senate has not given its ad-
vice and consent to ratification of the Genocide
Convention. That convention accordingly has not
been ratified by the President of the United States
and is not in force for the United States. Its pro-
visions have no binding effect within the United
States and have in no way abridged or affected
the rights and freedoms of American citizens.

19, 1949. Entered into force March 26, 1952. TIAS

2487.

Ratification deposited: Belfrium. April 23, 1954.

Application to: Belgian Congo and Trust Territory of

Ruanda-Urundi (notification by Belgium given April

2.3, 1954).
Protocol relating to adherence to the convention on road
traffic of certain countries which were not able to par-
ticipate in the United Nations conference on road and
motor transport. Formulated at Geneva September 19,
1949. TIAS 24S7.
Ratification deposited: Belgium, April 23, 1954.

U.S. and| Iceland Agree on
Implementing of Defense Agreement

Press release 286 d.ited May 26

The United States and Iceland on May 25
reached an understanding on changes in the meth-
ods of implementing the U.S.-Icelandic Defense
Agreement of May 5, 1951.^ In response to the
request of the Icelandic Government received last
December, representatives of the United States
and Iceland — including an advisory team from
the Departments of State and Defense — began dis-
cussions February 2. Agreement was effected by
an exchange of notes between tlie Icelandic For-
eign Minister and the American Minister to Ice-
land, Edward B. Lawson, who negotiated the oi-ig-
inal agi'eement of 1951.

In general the understandings reached are tech-
nical in nature. Tliey pertain chiefly to how de-
fense construction work in Iceland and the plan-
ning, arrangement, and operation of the military
areas in Iceland can best be effected consistent
with Nato objectives of defending Iceland and the
North Atlantic area, while also taking into ac-
count problems peculiar to Iceland.

The basic U.S. -Iceland Defense Agreement of
May 5, 1951, was negotiated at the request of Nato
in view of Iceland's lack of defenses. It has not
been altered in these negotiations.

Current Actions

United Nations

Constitution of the United Nations Educational, Scientific
and Cultural Organization. Concluded at London
November 16, 1945. Entered into force November 4,
1946. TIAS 1580.
Sig^nature: Union of Soviet Socialist Republics, April

21, 1954.
Acceptance deposited: Union of Soviet Socialist Repub-
lics, April 21, 1954.
Convention on the prevention and punishment of the
crime of genocide. Opened for signature December 9,
1948. Entered into force January 12, 1951.'
Ratification deposited: Union of Soviet Socialist Be-
pubUcs, May 3, 1954.*

War

Geneva convention relative to treatment of prisoners of

war;
Geneva convention for amelioration of the condition of

the wounded and sicli in the armed forces in the field ;
Geneva convention for amelioration of the condition of

the wounded, sick and shipwrecked members of armed

forces at sea ;
Geneva convention relative to protection of civilian per-
sons in time of war.

Dated at Geneva August 12, 1949. Entered into force
October 21, 1950.'

Ratifi<:ation deposited: Cuba, April 15, 1954.

Weather Stations

Agreement on North Atlantic Ocean Stations.' Dated at
Paris February 25, 1954.
Acceptance deposited: Sweden, April 23, 1954.

BILATERAL

Cuba

Agreement renewing for an indefinite period the agree-
ment concluded in 1953 to facilitate the informal visits
of war vessels. Effected by exchange of notes at
Habana November 23, 1953 and January 20, 1954. En-
tered into force January 20, 1954.

MULTILATERAL

Narcotics

Protocol for limiting and regulating the cultivation of the
poppy plant, the production of, international and whole-
sale trade in, and use of opium.^ Dated at New Tork
June 23, 1953.
Ratification deposited: Canada, May 7, 1954.

Transportation

Convention on road traffic. Dated at Geneva September

' For text, see Bulletin of May 21, 1951, p. 812.
' Not in force.

United Kingdom

Supplementary protocol amending the convention for the
avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income of April
16, 1945 as modified by the supplementary protocol of
June 6, 1946. Signed at Washington May 25, 1954.
Enters into force upon the exchange of ratifications.

' Not in force for the United States.

* Ratification included reservations made at the time
of signing.

' Not in force ; for entry into force provisions, see
Bulletin of Apr. 26, 1954, p. 653.

884

Departmenf of State Bulletin

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Calendar of Meetings '

Adjourned During May 1954

U. N. Commission on Narcotic Drugs: 9th Session New York .... Apr. 19-May 14

U. N. Economic Commission for Europe: 2d East- West Trade Consulta- Geneva Apr. 20-May 3

tion.

IcAO Conference on Coordination of European Air Transport Strasbourg .... Apr. 21-May 8

UNESCO Intergovernmental Conference on Protection of Cultural Property The Hague .... Apr. 21-May 12

in the Event of Armed Conflict.

Lyon International Fair: 36th Annual Lyon Apr. 25-May 3

International Conference on Oil PoUution of the Sea and Coasts .... London Apr. 26-May 12

Itu Administrative Council: 9th Session Geneva May 1-30

Upu Executive and Liaison Committee Lucerne May 3-15

U. N. EcAFE Inland Waterways Subcommittee: 2d Session Saigon May 3-8

International Rubber Study Group: 11th Meeting Colombo May 3-11

World Health Organization: 7th Assembly Geneva May 4-22

International Sugar Council: 3d Meeting of 1st Session London May 5-7

American International Institute for Protection of Childhood: Annual Montevideo .... May 10-15

Meeting of Directing Council.

Ilo Advisory Committee on Salaried Employees and Professional Workers: Geneva May 10-22

3d Session.

IcAO Special Middle East Regional Communications Meeting Rhodes May 11-28*

15th International Conference on Large Electric High Tension Systems Paris May 12-22

(Cigre).

International Xorth Pacific Fisheries Commission: Meeting of Committee Tokyo May 17-31

on Biology and Research.

Fag Committee on Financial Control: 18th Session Rome May 17-22

Food and Agriculture Organization: 3d Conference on Mechanical Wood Paris May 17-27

Technology.

U. N. Ecafe Regional Conference on Water Resource Development . . Tokyo May 17-22

Caribbean Commission: 18th Meeting Belize May 19-24

Ilo Governing Body: 125th Session (and Committees) Geneva May 24-29

in Session as of May 31, 1954

Geneva Conference Geneva Apr. 26-

U. N. Conference on Customs Formalities for the Temporary Importation New York May 11-

of Private Vehicles and for Tourism.

U. N. Disarmament Commission, Subcommittee of Five (Powers): 2d New York May 13-

Meeting.

International Fair of Navigation Naples May 15-

Who Executive Board: 14th Meeting Geneva May 24-

Rice Consultative Committee: 8th Meeting Singapore May 26-

11th International Ornithological Congress Basel May 29-

10th International Congress of Agricultural and Food Industries .... Madrid May 30-

Scheduied June 1-August 31, 1954

IcAO Assembly: 8th Session Montreal June 1-

Ilo Anniial Conference: 37th Session Geneva Jime 2-

U. N. Trusteeship Council: 14th Session New York June 2-

Fao Committee on Commodity Problems: 23d Session Rome June 3-

U. N. International Law Commission: 6th Session Paris June 3-

International Cotton Advisory Committee: 13th Plenary Meeting . . . Sao Paulo June 7-

Unesco Intergovernmental Conference of Experts on Cultural Relations Paris June 8-

and Conventions.

' Prepared in the Division of International Conferences May 21, 1954. Asterisks indicate tentative dates and loca-
tions. Following is a list of abbreviations: U.N., United Nations; Icao, International Civil Aviation Organization;
UNESCO, United Nations Educational, Scientific and Cultural Organization; Itu, International Telecommunication Union;
Upu, Universal Postal Union; Ecafe, Economic Commission for Asia and the Far East; Ilo, International Labor Organi-
zation; CioRE, Conference Internationale Des Grands Reseaux Electriques; Fao, Food and Agriculture Organization;
Who, World Health Organization; Ece, Economic Commission for Europe; Wmo, World Meteorological Organization;
CciT, International Telegraph Consultative Committee (Comit6 consultatif Internationale telcgraphique) ; Gatt, General
Agreement on Tariffs and Trade.

June 7, 7954 885

Calendar of Meetings — Continued

Scheduled June 1-August 31, 1954 — Continued

Fifth Inter-American Travel Congress Panamd City . . . June 10-

International Exposition in Bogotd. Bogotd June 13-

Fao of Latin American Forestry Commission: Meeting of Committee Rio de Janeiro . . . June 14—

on Research.

International Commission for Northwest Atlantic Fisheries: 4th Annual Halifax June 14-

Meeting.

International Meeting of Tonnage Measurement Experts Paris June 14-

U. N. EcE Regional Conference of Statisticians Geneva June 14-

U. N. Permanent Central Opium Board and Narcotic Drugs Supervisory Geneva June 14-

Body: 11th Joint Session.

IcAO Meteorology Division: 4th Session Montreal June 15-

Wmo Commission for Aeronautical Meteorology: 1st Session Montreal June 15-

Civil Aviation Meet (Centenary of Sao Pa>ilo) Sao Paulo June 16-

International Wheat Council: 15th Session London June 16-

Ilo Governing Body; 126th Session Geneva June 25*-

Unesco Seminar on Educational and Cultural Television Program London June 27-

Production.

U.N. Economic and Social Council (Ecosoc): 18th Session Geneva June 29-

Itu International Telegraph Consultative Committee (Ccit): Study Geneva June 30-

Group XI.

International Exposition and Trade Fair Sao Paulo .... July 1-

8th International Botanical Congress Paris July 2-

17th International Conference on Public Education (jointly with Unesco) . Geneva July 5-

XVth International Exhibition of Cinematographic Art Venice July 6-

International Union of Pure and Applied Physics: 8th General Assembly . London July 6-

6th Pan American Highway Congress Caracas July 11-

International Whaling Commission: 6th Meeting Tokyo July 19-

International Union of Cr.vstallography: 3d General Assembly Paris July 21-

Gatt /l(i //oc Committee for Agenda and Intersessional Meeting .... Geneva July 21-

4th Inter-American Congress of Sanitary Engineering Sao Paulo July 25-

World Power Conference: Sectional Meeting Rio de Janeiro . . July 25-

International Union of Theoretical and Applied Mechanics: 4th General Brussels July 27-

Assembly.

International Union for the Protection of Nature: 4th General Assembly . Copenhagen .... July 28-

3d Inter-American Conference on Indian Life La Paz Aug. 2-

10th World's Poultry Congress Edinburgh .... Aug. 13-

5th International Congress of Soil Science L^opoldville. . . . Aug. 16-

U.N. Committee on Information from Non-Self-Governing Territories: New York .... Aug. 20-
5th Session.

31st International Congress of Americanists Sao Paulo .... Aug. 23-

International Scientific Radio Union: 11th General Assembly Amsterdam .... Aug. 23-

Interparliamentary Union: 43d Conference Vienna Aug. 26-

International Mathematical LTnion: 2d General Assembly The Hague .... Aug. 30-

U.N. World Population Congress Rome Aug. 31-

Wmo Executive Committee: 5th Session Geneva August or September

Thermonuclear Tests in
Pacific Trust Territory

STATEMENT BY HENRY CABOT LODGE, JR.
U.S. REPRESENTATIVE TO THE U.N.

U.S. /U.N, press release 1917 dated May 14

The United States Government is very sorry
indeed that some inhabitants of the Marshall
Islands apparently have suffered ill effects from
the recent thermonuclear tests in the Pacific prov-
ing grounds, as described in the petition to the
United Nations. This is a matter of real and deep
concern to the American people and government,
who take very seriously our responsibilities toward

the inhabitants of the Trust Territory of the Pa-
cific Islands.

I can assure them, as well as the members of the
United Nations, that the authorities in charge are
doing everything humanly possible to take care
of everyone who was in the area affected by the
unexpected falling of radioactive materials caused
by a shift in the wind during the March 1 test.

The 236 Marshallese citizens in tlie affected area
were immediately given the same medical exami-
nation as the American personnel of the test group
who were similarly exposed. They were promptly
evacuated to the United States Naval Station at
Kwajalein, where their needs were immediately
provided for by the United States Navy. In addi-
tion, a team of medical experts from the Atomic

886

Department of State Bulletin

Energy Commission, United States Navy and
Army, was promptly formed and sent to Kwaja-
lein — and the services of the American Red Cross
office at Kwajalein were enlisted — to assure any
necessary medical attention and care for the per-
sonal well-being of all concerned. They ai-e I'e-
maining under close observation and any of them
who may need it will continue to receive the best
medical attention.

I am informed that there is no medical reason
to expect any permanent after-effects on their gen-
eral health, due to the falling of radioactive
materials.

The United States Government considers the
request and the suggestions of the petitioners both
reasonable and helpful. The restraint and mod-
eration with whicli they have been presented
evokes admiration and sympathy.

Regarding the petitioners' requests, that "all
experiments with lethal weapons within this area
be immediately ceased," attention is called to the
United States Government's announcement of
May 13 that "the 1954 series of tests . . . have
been completed," and that "within a few days sea
and air traffic may be safely resinned within the
'warning area' which was set up for safety pur-
poses for the time when the tests were taking
place. Official notice to mariners and airmen will
be published."

As the petitioners rightly imply, the United
States would not have been conducting such tests
if it had not been determined after very careful
study that they were required in the interests of
general peace and security. The selection of test
sites in this particular area was made only after
very careful examination of the alternative pos-
sibilities, and in an effort to insure that the tests
were carried out with least possible danger. It
will be recalled that, pursuant to the provisions
of the trusteeship agi-eement which designate the
trust teiTitory as a strategic area, the United States
notified the United Nations on April 2, 1953, that
the area of the Pacific proving gi'ounds was being
closed for security reasons in order to conduct
necessary atomic experiments.

Let me also assure all the inhabitants of the
Pacific trust territory, and the members of the
United Nations, that the United States authorities
are doing everything possible to prevent any re-
currence of possible danger. The United States
Government is taking and will continue to take
"all possible precautionary measures . . . be-
fore such weapons are exploded," as suggested by
the Marshallese citizens. We also agree that "all
people in the area be instructed in safety meas-
ures" and that instructions be given to Marshallese
medical practitioners and health aides which will
be useful in detecting danger and avoiding harm.

Further, it is reasonable and right, as the peti-
tioners suggest, that any Marshallese citizens who
are removed as a result of test activities, will be

reestablished in their original habitat in such a
way that no financial loss would be involved.

The United States Government, and the oiiicials
immediately concerned with the administration of
the territory, greatly appreciate the words of com-
mendation of the petitioners with respect to the
way the territory is being administered.

The welfare of the inhabitants has been the
constant concern of the United States Govern-
ments, and particularly of the High Commissioner,
who will continue to spare no effort necessary to
give effect to the Trusteeship Agreement.

TEXT OF MARSHALLESE PETITION

U.N. doc. T/PET.10/2S
Dated May 6, 1954

April 20th, 1954
To : The United Nations

From : The Marshallese people

Suhject: Complaint regarding the explosion of lethal
weapons within our home islands

The following should not be misconstrued as a repudia-
tion of the United States as our governing agency for the
United Nations under the trusteeship agreement, for aside
from the complaint registered in this petition we have
found the American administration by far the most agree-
able one in our memory. But in view of the increasing
danger from the exi)erimeuts with deadly explosives
thousands of times more powerful than anything pre-
viously known to men, the lethal effects of which have
already touched the inhabitants of two of the atolls in
the Marshalls, namely. Kongelab and Uterik. who are now
suifering in various degrees from "lowering of blood
count,'' burns, nausea and the falling off of hair from
the head, and whose complete recovery no one can promise
with any certainty, we, the Marshallese people feel that
we must follow the dictates of our consciences to bring
forth this urgent plea to the United Nations, which has
pledged itself to safeguard the life, liberty and the gen-
eral well being of the people of the Trust Territory, of
which the Marshallese people are a part.

The Marshallese peoiile are not only fearful of the dan-
ger to their persons from these deadly weapons in case
of another miscalculation, but they are also very concerned
for the increasing number of i)eople who are being re-
moved from their land.

Land means a great deal to the Marshallese. It means
more than just a place where you can plant your food
crops and build your houses : or a place where you can
bury your dead. It is the very life of the people. Take
away their land and their spirits go also.

The Mar.shall Islands are all low coral atolls with land
area where food plants can be cultivated quite limited,
even for today's population of about eleven-thousand
people. But the jiopulation is growing rai>idly; the time
when this number will be doubled is not far off.

The .lapanese had taken away the best portions of the
following atolls: Jaluit, Kwajalein, Encwctak. Mille,
Maloelap and Wotje to be fortified as part of their lu-epa-
ration for the last war. World War II. So far, only Imedj
Island on .laluit Atoll has been returned to its former
owners.

For security reasons, Kwajalein Island is lieing kept
for the military use. Bikini and Eniwetak were taken
away for Atomic bomb tests and their inhabitants were
moved to Kill Island and Tjelang .\toll resix'ctively. Be-
cause Uongelab and rierik are now radio-.active, their
inbal)itnnts are lieiiig kept on Kwajalein for an indeter-
minate length of time. "Where nexf?" is the big question
whicli looms large in all of our minds.

Therefore, we tlie members of the Marshallese Congress

June 7, J 954

887

J

Hold-Over Committee, writers of this petition, who are
empowered by the Marshallese Congress, to act in its name
when it is not in session and which is In turn a group
of members representing all the municipalities in the
Marshalls, due to the increasing threat to our life, liberty,
happiness and possession of land, do hereby submit this
petition to the United Nations with the hope that it will
act on our urgent plea. Thus, we request that :

1. All the experiments with lethal weapons within this
area be immediately ceased.

2. If the experiments with said weapons should be
judged absolutely necessary for the eventual well being
of all the people of this world and cannot be stopi>ed or
changed to other areas due to the unavailability of other
locations, we then submit the following suggestions:

(a) All possible precautionary measures be taken be-
fore such weapons are exploded. All human beings and
their valuable possessions be transported to safe distances
first, before such explosions occur.

(6) All the peoiile living in this area be instructed in
safety measures. The people of Rongelab would have
avoided much danger if they had known not to drink the
waters on their home island after the radio-active dusts
had settled on them.

(c) Adequate funds be set aside to pay for the pos-
sessions of the people in case they will have to be moved
from their homes. This will include lands, houses and
whatever possessions they cannot take with them, so that
the unsatisfactory arrangements for the Bikinians and
Eniwetak people shall not be repeated.

(d) Courses be taught to Marsliallese Medical Practi-
tioners aud Health-Aides which will be useful in the
detecting of and the circumventing of preventable dangers.

We would be very pleased to submit more information
or explain further any points we have raised that may
need clarifications.

The Marshallese people who signed this petition are on
the following sheets, divided in the following manner :
The first group are members of the Marshallese Congre.ss
Hold-Over Committee. The second group are some of
the many interested Marshallese citizens. The name of
each person appears on the left hand side and his or her
home atoll and occupation on the right hand side opposite
the signature.

If more signatures are needed we will promptly supply
them. The only reason we are not supplying more now
Is because to do so would mean a delay of some three
months, the time necessary to make complete circuit of
our far-flung atolls and islands by ship.

[Signed by 11 members of the Marshallese Congress

Hold-over Committee.]

Current U.N. Documents:
A Selected Bibliography'

General Assembly

Peace Ob.servation Commission. Balkan Sub-Commission.
Ninth periodic report of the United Nations Military
Observers in Greece. Letter dated 12 April 1954 from
the Principal Military Observer submitting report

' Printed materials may be secured In the United States
from the International Documents Service, Columbia
University Press, 2960 Broadway, New York 27, N.Y.
Other materials (mimeographed or processed documents)
may be consulted at certain designated libraries in the
United States.

covering the period from 1 January to 12 April 1954.
A/CN.7/SC.1/54. April 19, 1954. 3 pp. mimeo.

Nationality Including Statelessness. Report on Multiple
Nationality bv Roberto Cordova. Special Ranwrteur.
A/CN.4/83. April 22, 1954. 33 pp. mimeo.

Nationality Including Statelessness. Addendum to Com-
ments by Governments on the Draft Convention on
the Elimination of Future Statelessness and on the
Draft Convention on the Reduction of Future State-
lessness. A/CN.4/82/Add.2. May 5, 1954. 8 pp.
mimeo.

Secretariat

UN Fact Series : the General Assembly, the Security Coun-
cil, the Economic and Social Council, Trusteeship
Council, the International Court of .Tustice, the Sec-
retariat, Economic Commission for Europe, Economic
Commission for Asia and the Far East, Economic
Commission for Latin America. ST/DPI/SER.C/1-9.
March 1, 1954, 26 pp.

The Question of Korea (1950-1953). ST/DPI/SER.A/79.
March 10, 1954. 44 pp.

The Assay, Characteristics, Composition, and Origin of
Opium. No. 28. Trials of Unknown Opiums by
Canadian Scientists for Origin Determinations.
ST/SOA/SER.K/28. April 29, 1954. 5 pp. mimeo.

Disarmament Commission

Communication Dated 19 April 1954 to the Secretary-
General from the Permanent (Observer of Japan to
the United Nations Transmitting a Letter from the
Minister for Foreign Affairs of Japan Dated 13 April
1954 Enclosing a Resolution Passed by the House of
Councillors on 5 April 1954. DC/50. April 21, 1954.
3 pp. mimeo.

Letter Dated 23 April 1954 to the Secretary-General from
the Representative of the Union of Soviet Socialist
Republics to the United Nations. DC/51. April 23,
1954. 2 pp. mimeo.

Economic and Social Council

Rural Electrification. E/ECB/173, Volume II. E/ECE/
EP/137, Volume II. March 1954. 182 pp.

Bibliography on the Processes and Problems of Indus-
trialization in Under-Developed Countries. E/2o38.
March 29, 1954. 76 pp. mimeo.

Full Employment. Measures to Prevent Possible Infla-
tion at High Levels of Economic Activity. E/2563.
April 6, 1954. 125 pp. mimeo.

Full Employment. Reconversion After the Rearmament
Period. E/2.564. April 14, 1954. 40 pp. mimeo.

United Nations Programme of Technical Assistance. Un-
der General Assembly resolutions 200 (III), 246
(III), 418 (V), 723 (VIII) and Economic and Social
Council resolution 222 A (IX). Report by the Sec-
retary-General. E/2575. April 20, 1954. 42 pp.
mimeo.

Full Employment. Measures to Prevent Possible Infla-
tion at High Levels of Economic Activity. E/2563/
Add.l. April 22, 1954. 47 pp. mimeo.

Statelessness. Draft Protocol Relating to the Status of
Stateless Persons. Problem of Statelessness: Con-
.solidated Report by the Secretary-General Under
Council Resolution 352 (XII) and Memorandum by
the Secretary-General on the Action Taken by the
International Law Commission. Report of the Social
Committee. E/25S0. April 22, 1954. 3 pp. mimeo.

Freedom of Information. Encouragement and Develop-
ment of Independent Domestic Information Enter-
prises. Report of the Social Committee. E/2584.
April 28, 1954. 3 pp. mimeo.

888

Deparfmenf of SfaJe Bulletin

A Report on Educational Exchange^Under the Fulbright Act in 1953 ^

During 1953, about 7,000 persons were ex-
changed with 70 countries through exchange pro-
grams administered by the Department of State
under the Fulbright Act, tlie Smith-Mundt Act
and other acts of Congress. Participants in-
cluded students, educators, newsmen, industrial-
ists, specialists and leaders in other fields who are
influential in molding public opinion overseas.
Their visits have a single purpose — to contribute
to mutual understanding between the United
States and other countries. More specifically, in
the light of the present world crisis, this purpose
is to bring about a greater world-wide under-
standing of, confidence in, and cooperation with
the United States; to further the realization
among other peoples that the objectives and poli-
cies of the United States are in harmony with and
will advance their own legitimate aspirations for
peace, progress and freedom; and to create a
greater spirit of unity, hopefulness, and determi-
nation among free peoples.

The enactment of the Fulbright Act in 1946
made it possible to extend the exchange program,
originally authorized for Latin America in 1938
as part of our Good Neighbor Policy, to certain
countries beyond the Western Hemisphere. Con-
gress later provided, in the Smith-Mundt Act of
1948, the general framework for exchange activi-
ties on a world-wide basis. Within this frame-
work, the Department conducts special programs
in Germany and Austria under an appropriation
for Government in Occupied Areas, and in Fin-
land and India under payments of those countries
that have been set aside by legislation for this
purpose.

The following report is limited to the exchange
activities carried out under the Fulbright xVct, and
is submitted in accordance with Section 32 of the
Surplus Property Act of 1944, as amended August
1, 1946, by the Fulbright Act. Specifically, it
covers those activities authorized by paragraph
32 (b) (2) of the Fulbright Act which were car-

' Excerpts from Report on thr Operations of the De-
partment of State under Public Law SS-i (House Doc. no.
365, 83tl Coufc., 2d sess.), Apr. 7, 1954. The report in-
cludes letters of transmittal from the President and the
Secretary of State and tables showing geographical dis-
tribution of awards, fields of study and teaching, Ameri-
can and foreign recipients, and funds available and
expenditures.

ried out during the period January 1 through De-

cember 31, 1953.

Status of Executive Agreements

No executive agreements were signed in 1953.
Altogether, 28 executive agreements have been
signed since the act was passed in 1946. How-
ever, programs have since been suspended in three
countries — China (Formosa), Korea and Iran.
The exchange activities described in this report
were carried out under executive agreements with
the following 25 countries: Australia, Austria,
Belgium-Luxembourg, Burma, Ceylon, Denmark,
Egypt, Finland, France, Germany, Greece, India,
Iraq, Italy, Japan, the Netherlands, New Zealand,
Norway, Pakistan, the Philippines, Sweden, Thai-
land, Turkey, Union of South Africa and the
United Kingdom.

The carrying out of executive agreements was
affected by the provisions of Section 1415 of Pub-
lic Law 547, 82nd Congress, the Kabaut Amend-
ment. The effect of this amendment is to require
the purchase in dollars, from the Treasury De-
partment, of all foreign currencies used in the
program, thereby making commitments under
executive agreements dependent on annual dollar
appropriations by the Congress. A request was
made for exemption of the program from the pro-
visions of the Eabaut Amendment. AVliile Con-
gress did not approve the exemption, it did pro-
vide for the carrying out of existing agreements,
as well as for the making of new agreements for
periods in excess of one year, subject to the avail-
ability of appropriations for this purpose ( Section
1313 of the General Provisions of the Supple-
mental Appropriations Act of 1953, Public Law
207, 83rd Congress).

The dwindling supply of foreign currencies
available under the Fulbright Act threatens the
continuation of the program in a number of coun-
tries. For example, such currencies are no longer
available in Turkey and a similar situation is in
prospect in the immediate future in Egypt and
India. Altogether, exchange programs will ex-
pire in the following 8 countries by 1956 unless
additional foreign currencies become available:
Ceylon, Egypt, India, Iraq, Pakistan, Sweden,
Thailand and the LTnion of South Africa.

June 7, 1954

889

It was lioped tliat the growing shortage of for-
eign currencies might be somewhat offset tlirough
the provisions of Section 11 of Public Law 400,
82nd Congi-ess. This Act amends the P'ulbright
Act by broadening tlie source of foreign curren-
cies and credits available for exchanges and other
purposes. For example, it makes available not
only currencies acquired as a result of surplus
property disposals, but also other currencies of
foreign governments "held or available for ex-
penditure by the United States or any agency
thereof . . . not required by law or agreement
with such Government to be expended or used for
any other purpose."

However, these currencies are also available for
other activities of the United States Government,
such as the Department's administrative expenses
abroad, purchase and rent of foreign buildings
and foreign currency expenses of the Defense De-
partment and other United States agencies. If
expenditures for these activities should exhaust
foreign credit balances due the United States, the
Department would be unable to buy such cur-
rencies from the Treasury Department even
though dollars might be appropriated by Con-
gress for this purpose.

Program Activities and Accomplishments

Exchange programs under the Act were planned
and put into operation for the first time in Ger-
many, Sweden, Ceylon, Finland, and the Union of
South Africa, with which agreements were signed
in 1952. The program with Germany involved
the first large scale movement of American stu-
dents to that area since the outbreak of World
War II. Foundations and Commissions in Scan-
dinavian countries pooled their knowledge and
experience in getting new exchange programs
quickly underway in Sweden and Finland. Ar-
rangements were worked out between these coun-
tries for the interchange of American lecturei-s
and other grantees to achieve maximum program
effectiveness.

Altogether, exchange programs were carrietl
out with 25 countries involving 1,606 American
and 2,576 foreign grantees. Included were grants
to foreign students to attend American sponsored
schools abroad, such as the American University
in Beirut — long recognized as a bulwark of
American influence in the Near East.

These exchanges, representing an expenditure
of $7,303,075 in foreign currencies, could not have
been carried out without the dollar assistance pro-
vided by the Smith-Mundt Act. Equally im-
portant was the financial simport provided by
private and other non-U.S. Grovernment gi'oups.
Foreign currencies, for example, cannot pay for
grantees' expenses within the United States, or
for program and administrative costs in this
country. Altogether, $2,500,000 was made avail-
able under the Smith-Mundt Act, $1,000,000 under

special programs for Germany, Austria and Fin-
land, and approximately $7,000,000 by non-U.S.
Government sources to achieve maximum utiliza-
tion of these foreign currencies for exchange
purposes.

The following table indicates the scope of the
exchange program in each country: [See p. 891.]

To increase the effectiveness of grants to indi-
vidual students, teachers, lecturers and research
scholars, a number of projects were developed.
These included group projects, such as American
Studies Conferences and Seminars, in which all
categories of grantees as well as the general public
participated; joint projects, such as the foreign
lecturer program in small American colleges,
which the John Hay Whitney Foundation financed
jointly with the Department to enable outstanding
foreign lecturers to teach at lesser-known Ameri-
can educational institutions; and special projects,
such as the one recently planned for South East
Asian journalists whereby they will spend two
months touring the United States and attend a
special workshop including lectures by out-
standing American journalists and political fig-
ures arranged by the American Press Institute at
Columbia University under a Rockefeller Founda-
tion grant.

American Studies projects were designed to
meet the increasing interest abroad in our history,
literature and culture, for a better understanding
of our role in the worhl today. For example, one
of the outstanding developments of the year was
the increase in the number of short-term confer-
ences on American studies, which were held in the
United Kingdom, Norway, the Netherlands, Pak-
istan and India. A special group project in
American civilization was arranged for teachers
from Denmark, Norway, France, Sweden and the
Netherlands at American universities.

American studies continued to be taught in for-
eign universities as a result of the progi-am. A
recent example is the special chair in American
literature and history established in Belgium at
the University of Liege, to be filled annually by an
^Vjnerican lecturer. Altogetlier, courses in Amer-
ican studies are now being offered at universities
in Denmark, Norway, Germany, Belgium, France,
India, Japan, Greece and Italy. In addition, in-
dividual American lecturers in the general field
of American studies have been assigned to prac-
tically all of the 25 countries participating in the
program, including critical Near and Far Eastern
areas.

Teacher exchanges are vital channels, not only
for reaching impressionable youth groups abroad
who are groping for answers to the world's social
and political problems, but also for influencing
many important community groups. Altogether,
more than 271 American and 236 foreign teachers
were exchanged during this period. These ex-
changes included a teacher education project un-
der which foreign teachers visited the United

890

Department of Sfofe Bulletin

Awards Made in 1953

Country

Grants to Americans

Lec-
turers

Re-
search
scholars

Teach-
ers

Stu-
dents

Grants to foreign nationals

Lec-
turers

Re-
search
scholars

Teach-
ers

Stu-
dents

Scholar-
ships,
Ameri-
can
schools
abroad

Total

Australia

Austria

Belgium-Luxembourg .

Burma

Ceylon

Denmark

Egypt

Finland

France

Germany

Greece

India

Iraq

Italy

Japan

Netherlands

New Zealand ....

Norway

Pakistan

Philippines

Sweden

Thailand

Turkey

Union of South Africa
United Kingdom . . .

Total .

8

8

3

3

2

6

15

5

13

15

8

10

9

12

18

10

3

5

7

12

4
7
7
4
1
6
4
4
16
16
2

i

24
10
5
4
8
1

28

51

19

2

10
3
2

12

12

10

1

2

7

29

12

25

7

2

16

7

22

5

4

4

19

5

7

232

192

6

16

1

106

18

39

14

25

2

5

23

1
38

4

1

1

106

10

15

4

47

25

7

13

2

38

38

13

8

36

9

2

7

1

5

9

5

9

5

5

5

7

18

45

8

9

12

21
36
16

7

15

4

1

184

23

86

199

163

271

973

401

236

30
70
36
2
16
51
27
44

198

178
40
76
26
89

149
57
14
65
37
49
8
29
11
1

174

1,477

3

15

12
201

4
6

107
13

384

108

166

92

18

24

103

100

84

594

463

298

140

46

316

278

166

55

170

64

68

15

147

30

3

634

'4,182

> The difference between this figure and the 4,503 selections made by the Board of Foreign Scholarships represents
321 persons who were unable to accept awards.

States for six month periods, studying and observ-
ing American school systems; teacher inter-
changes, whereby American and foreign teachers
were enabled to trade positions in their respective
school systems for a full year ; and summer semi-
nars abroad for xVmerican teachers, sucli as those
held last summer in France and Italy for teachers
of French and Italian languages and cultures.

An important part of tlie teacher progi'am is
the training of foreign teachers in English teach-
ing methods. A wider knowledge of English not
only helps to remove language barriers to inter-
national understanding but also helps to awaken
and maintain interest in American life. This pro-
gram included English language training of for-
eign teachers in this country, the holding of
teacher seminars in foreign countries to review
English teaching methods, source materials and
publications, and the sending of American teach-
ers abroad to conduct English classes for teachers
and students. Tyjiical of tlie latter was the Amer-
ican teaclier in Thailand who, noting her students'
interest in the American pi"esidential elections,
arranged for a mock convention in English.
Through such methods as these she not only helped
her students to improve rapidly their English

language fluency, but to increase their underetand-
ing of the United States.

A new development in the program was the ex-
tension of gi'ant opportunities to non-academic
persons, such as Japanese labor leaders. South
East Asian joui-nalists, and German government
officials. These projects were made possible by
the decision of the Board of Foreign Scholarships
to include foreign specialists whose programs are
carried out in cooperation with approved educa-
tional institutions.

In carrying out tlieir studies, teaching and re-
search, American grantees often have oppor-
tunities to undertake additional community
activities which extend their influence beyond the
classroom. In tlie United Kingdom, for instance,
an American student pursuing his studies in the-
ology at the University of Edinburgh, has also
spent some of his free time on clerical work in a
poor Edinburgh district, where he preaches and
visits regularly the church's parishioners. In
Italy, an American research scholar won the re-
spect and liking of a large circle of friends, includ-
ing shopkeepers, workers and artisans, in carry-
ing out a sociological study of an Italian village.
A large Italian industrial firm, recognizing the

June 7, 1954

891

value of the study in future town planning for its
employees, provided oiRce space and staff assist-
ance, and prevailed upon the American to stay
and complete the study upon the termination of
his grant.

In Turkey, a group of American grantees pro-
vided a lecture series, open to the general public
in cooperation with the United States Information
Service, covering such varied subjects as "Amer-
ican business methods and production techniques",
"The importance of sportsmanship and fair play
in American sports", and "American art and liter-
atui"e". In India, an American lecturer estab-
lished a school of journalism in an Indian univer-
sity, and toured the country meeting editors and
visiting newspaper and printing plants. Many
other instances could be cited of this growing ten-
dency of the program to reach beyond university
circles, such as the seminar in Norway for labor
leaders, the citizenship education projects
launched in Philippine communities by an Amer-
ican lecturer, and the work of American teachers
there in bringing modern scientific methods of
agriculture to outlying farming communities.

In many countries, associations of former
gi'antees have been formed. These groups are
active in keeping alive interest in our country, as
well as in maintaining American contacts. United
States Foundations and Commissions also try to
keep in touch with unsuccessful candidates be-
cause of their interest in the United States. They
are oft«n invited to attend local seminars on
American studies, placed on mailing lists for other
functions sponsored by the United States Infor-
mation Service and provided with surplus United
States Information Service books.

Evaluation of the Program

Evaluation studies continued to be made dur-
ing 1953 to assess the effectiveness of the over-all
exchange program in promoting favorable at-
titudes towards the United States, and in increas-
ing understanding between the United States and
other countries. These studies have resulted so
far in the following general conclusions:

(1) The exchange experience causes foreign
grantees to change unrealistic and stereotyped
views of American life, particularly with regard
to the status of the family, the place of religion
in our national life, and "the moral standards of
Americans. These changed attitudes can help
combat anti-American propaganda more effec-
tively than any overt efforts on our part, since they
result from convictions arising from having ob-
served the conduct and behavior of Americans on
a face-to-face basis.

(2) Grantees obtained a more favorable view
of the motives behind American foreign policy —
thereby strengthening beliefs in the genuineness
of our desire to prevent war, and weakening beliefs
that our foreign policy is motivated by imperi-

alistic designs. These views can help the United
States in promulgating ideals and policies in
consonance with our aims.

(3) Such increased understanding of the
United States, although basically perhaps im-
measurable, usually taKes some olaservable form
after grantees return home. Judging from what
our cultural officers were able to observe in a
special study of returned grantees, well over
half are definitely known to be reporting favor-
ably and actively to their fellow countrymen — in
speeches, published writings, conversations, etc. —
about their experiences in America. It is safe to
assume that a much greater proportion of gi-antees
engage in such activities.

American grantees have also gained a wider
understanding of the cultural, political and eco-
nomic life of other countries, according to a major
evaluation study carried out in 1953. In addi-
tion, they have come to develop an understanding
and appreciation of our own international prob-
lems. It was found that considerable professional
benefits also resulted from their exchange expe-
rience, and that former grantees were active in
extending hospitality to foreign visitoi-s under
the program, in sharing experiences with their
local communities through talks, appearances on
radio and television programs, and through
publications.

The recent findings of the Senate Foreign Re-
lations Committee's Subcommittee on Overseas
Information Programs tend to support these con-
clusions. For example, the Committee reported
that the program "enjoys a high prestige both at
home and abroad, and is therefore able to attract
the voluntary participation of leading citi-
zens. . . . Exchangees often are or may be-
come prominent in government, business and the
professions, and their potential impact on at-
titudes towards this country is considerable.

Evaluation studies were also made of certain
operational matters in efforts to further improve
the program. For example, one study showed
that certain foreign students obtained better ori-
entation through living in American homes for
a short period, than through orientation courses
at universities. As a result, emphasis has been
given to this method of orientation — which is also
less expensive than univei"sity courses. Another
studj^ was made of the performances of individ-
ual American grantees abroad, as a guide to screen-
ing committees in making future selections. Ad-
ditional studies included a survey of the English
language proficiency of foreign teachers as it
affected their experiences in this country.

Administration

ADMINISTRATION IN THE UNITED STATES

The Department of State — Prior to the creation
of the United States Information Agency on

892

Department of State Bulletin

August 1, 1953, by Eeorganization Plan Number
8, the Educational Exchange Progi'ams and In-
ternational Information Programs were ad-
ministered by the International Information Ad-
ministration of the Department of State. The
retention of the Exchange Programs in the De-
partment of State, at the time the Information
Pi'ogram was transferred to a separate agency,
was in harmony with the views of the Senate's
special Subcommittee, referred to above. This
Subcommittee recommended that the exchange
program be expanded and retained in the Depart-
ment of State, noting that "the program is non-
political and nonpropagandistic in character."

The responsibilities of the Department for this
program are to a great extent supervisory, since
certain operational functions are performed in
the United States by public and private agencies
having special competence in the exchange fields
concerned, and overseas by bi-national United
States Pxlucational Foundations and Commissions
set up for this purpose.

The Department's responsibilities include policy
and administrative guidance to these agencies, the
negotiation of agreements with foreign countries
for the use of foreign currencies, the coordination
of exchange activities for which it has resi^onsibil-
ity with exchange programs of other Govermnent
and private agencies, authorization for expendi-
ture of funds by United States Foundations and
Commissions overseas, the review of individual
country programs and budgets, and evaluation of
over-all program effectiveness. The Department
also provides staff services for the Board of For-
eign Scholarships.

The Board of Foreign. Scholarships — Pursuant
to the Act, a Board of Foreign Scholarships, ap-
pointed by the President, has the responsibility
for supervising the progi'am, selecting candidates,
and determining which educational institutions
are qualified to participate.

The Board, which serves without compensation,
was composed of the following members as of De-
cember .■]!, 1953 : Mr. Frederick L. Hovde, presi-
dent of Purdue University, who was elected Chair-
man of the Board during 1953; Miss Margaret
Clapp, president of "Wellesley College, who was
elected Vice Chairman during 1953; Brigadier
General John N. Andrews, personal representative
of the Administrator of Veterans' Affairs, Vet-
erans Administration; ]\Ir. Samuel M. Brownell,
United States Commissioner of Education; Mr.
Charles S. Johnson, president of Fisk University ;
Mr. Walter Johnson, chairman of the Department
of History, University of Chicago; Mr. Martin
R. P. McGuire, professor of Greek and Latin,
Catholic University of America; Dr. Francis
Scott Smyth, dean of the Medical School, Uni-
versity of California ; Miss Helen C. 'Wliite, pro-
fessor of English, University of Wisconsin ; and
Mr. Philip H. Willkie, lawyer and representative
to the Indiana Legislature. The Executive Sec-

retary is Mr. Francis J. Colligan, Deputy Director

of the International Educational Exchange Serv-
ice of the Department.

The Board held four meetings in 1953, as well
as 16 meetings of its subcommittees on selections,
planning, and stipends. During this period, the
Board selected 4,503 candidates for awards, ap-
proved 27 additional educational institutions
abroad for participation in the program, and re-
viewed and approved annual country programs
sponsored by United States Educational Founda-
tions and Commissions abroad. In selecting
American citizens, the Board, pursuant to the
Act, gave preference to veterans provided all other
qualifications were equal. For example, of the
1,606 American students, teachers, lecturers, and
research scholars receiving awards during 1953,
489 were veterans of either World War I,"World
War II, or Korea.

Among the significant policy decisions taken
by the Board during 1953 were': (1) approval of
the general framework within which American
studies conferences can be developed overseas; (2)
extension of the program to non-academic persons
and fields, by approving projects under which
journalists from Soutli East Asian countries and
labor leaders from Japan can receive travel grants ;
(3) the development overseas of centers for the
study of linguistic sciences; and (4) recommenda-
tions for improving the State scholar program.

Cooperating Agencies— i:\\e, four agencies in
this country which assist the Department under
contract or working fund agreements are the
American Council on Education, which provides
certain services for teacher exchanges with Ameri-
can elementary and secondary schools abroad ; the
Conference Board of Associated Research Coun-
cils, for research scholar and lecturer exchanges;
the Institute of International Education, for can-
diclates for study awards; and the United States
Office of Education, for teacher exchanges with
foreign elementary and secondary schools. These
agencies perform such services as accepting and
reviewing applications for awards, confirming
placement in American educational institutions,
arranging programs and itineraries, counseling
foreign grantees while in this country, and en-
listing monetary support from non-governmental
groups for the purpose of increasing opportuni-
ties for study, research and teaching under the
program.

These agencies are also active in disseminating
information about the program and in enlisting
the voluntary support of local groups to carry
out various prograna functions. For instance, ap-
proximately 1,000 Fulbright advisors on Ameri-
can college campuses cooperated with the Insti-
tute of International Education in disseminating
information about scholarship opportunities to
American students. These advisoi-s also assisted
local preliminary selection connnittees in screen-

June 7, J 954

893

ing and recommending candidates. The Office of
Education disseminated information on teacher
exchange opportunities through its contacts with
superintendents of public schools tliroughout the
country, junior colleges and other teacher train-
ing institutions. It also utilizes the services of 54
regional teacher interviewing committees as a
part of the screening process. The Conference
Board and the American Council on Education
utilize similar groups in obtaining qualified
American candidates in lecturer, research scholar
and teacher categories.

Arrangements were made during this period to
simplify the administration of future teacher ex-
change programs by transferring to the Office of
Education the processing of teacher exchanges for
American schools abroad, formerly performed by
the American Council on Education. This change
consolidates responsibility for the administration
of all teacher exchanges in the Office of Education.

ADMINISTRATION OVERSEAS

United States Educational Foundations and
Commissions abroad, established pursuant to the
Fulbright Act, administer the exchange program
in each participating country in cooperation with
the principal United States Foreign Service post.
The activities of these bi-national groups include
the disbursing of funds available for educational
exchanges, disseminating information on oppor-
tunities for study, research or teaching in the
United States, recommending to the Board of
Foreign Scholarships foreign nationals and edu-
cational institutions for participation in the pro-
gram, arranging institutional placement for
American candidates recommended by tlie coop-
erating agencies, and providing orientation pro-
grams for American and foreign grantees. The
Foundations and Commissions also submit for re-
view and approval by the Department and the
Board of Foreign Scholarships annual programs
planned to reach exchange objectives within the
needs and opiportunities of each country.

Non-United States Government Financial Support

Private and other non-United States govern-
ment groups supported the exchanges carried out

under the Fulbright Act by providing more than
$7,000,000 in assistance during 1953. These groups
included colleges, univei-sities, foundations, hos-
pitals, and private businesses and industries. For
example, the Ford Foundation continued its finan-
cial support of qualified lecturers and reseai'ch
scholar from Near and Far Eastern countries who
lacked necessary dollar resources. Colleges and
universities throughout the country provided tui-
tion, maintenance and other scholarship assistance.
Both American and foreign primary and second-
ary school systems provided stipends for American
and foreign teachers under the teacher interchange
program, and foreign governments provided dol-
lar scholarship assistance to foreign travel grant
recipients.

In addition to financial aid, both American and
foreign groups provided a number of important
services, without which the progi'am could not
operate effectively. For example, foreign student
advisors helped orient foreign students to Amer-
ican college and community life, and provided
hospitality and other services. Representatives of
American businesses served witiiout compensation
as members of United States Educational Founda-
tions and Commissions helping to supervise and
administer the program in participating countries.
Alumni associations overseas, foreign universities,
bi-national foundations and others assisted in the
screening and recommending of foreign candi-
dates, and provided hospitality and orientation
for American grantees newly arrived in their
countries.

Not to be overlooked are the many private indi-
viduals, civic and other community groups in the
United States who offer program and hospitality
sei'vices to foreign grantees — an important factor
in the grantee's experience of American life. It
is estimated that over 10,000 private American
citizens assisted the program in these and other
ways during 1953.

Special "State Committees", appointed by the
Governors of each State and Territory, continued
to recommend panels of candidates for State
Scholarships, under a plan whereby two student
scholarships are reserved for legal residents of
each State and Territory.

894

Department of State Bulletin

June 7, 1954

Ind

e X

Vol. XXX, No. 780

Canada. U.S. Asks Approval for Construction of Libby

Dam (text of application) 878

China. The I'lilted States and a Divided China (Jenltins) . 85«
Czechoslovakia. Czechoslovak Protest Concerning Crusade

for Freedom Rejected 881

Economic A£fairs

Understanding Inter-American Economic Problems

(Bohan) R75

U.S. Asks Approval for Construction of Libby Dam (text

of application) 87S

Educational Exchange. A Report on Educational Exchange

Under the Fulbrlght Act in 1953 8S9

Ethiopia

Ethiopia's Role in World Affairs (Halle Selassie I;

Eisenhower) 867

Registration of Base Agreement With Ethiopia .... 871

Visit of Halle Selassie I 871

Germany. German Interzonal Travel (Conant-Semenov

letters) 879

Guatemala. Communist Influence in Guatemala (Dulles) . 873
Iceland. U.S. and Iceland Agree on Implementing of De-
fense Agreement 884

India. The Growth of Freedom in India (Allen) . . . 8C4
International Information. Czechoslovak Protest Concern-
ing Crusade for Freedom Rejected 881

International Organizations and Meetings

Calendar of Meetings 885

Five-Power Military Talks 864

Latvia. Accreditation of Latvian Charge d'Affaires

(Spekke; Dulles) 882

Military Affairs. Five-Power Military Talks 864

Mutual Security

Registration of Base Agreement With Ethiopia . . . 871

Technical Cooperation and the American Heritage

(Stassen) 871

U.S. and Iceland Agree on Implementing of Defense Agree-
ment 884

U.S. Policy on Participation in Collective Defense

(Dulles) 862

Non-Self-Governing Territories. Thermonuclear Tests in

Pacific Trust Territory (Lodge ; Marshallesc petition) . 886

Publications. Current U.N. Documents 88S

Treaty Information

Current Actions 884

The Genocide Convention 882

Registration of Base Agreement With Ethiopia .... 871
U.S. and Iceland Agree on Implementing of Defense Agree-
ment 884

879
888

Turkey. Visit of Turkish Prime Minister

United Nations. Current U.N. Documents

Name Index

Allen, George V 864

Bohan, Merwln L 875

Conant, James B 880

Dulles, Secretary 862, 864, 871, 878, 878, 879, 882

Eisenhower, President 870

Jenkins, Alfred leSesne 859

Lodge, Henry Cabot, Jr 886

Menderes. Adnan 879

Selassie I. Haile 867, 871

Semenov, Vladimir 879

Spekke, Arnolds 882

Stassen, Harold E 871

Check List of Department of State
Press Releases: May 24-30

Releases may be obtained from the News Divi-
sion, Department of State, Wasliington 25, D.C.

Press releases issued prior to May 2-1 which ap-
pear in this issue of the Bulletin are Nos. 258 of
May 15 and 264 of Alay 19.

No. Date

Subject
Latvian Charge accredited
Dulles : Red Cross League message
Haile Selassie's program
Reply to Czechoslovak note
Conant : Interzonal German travel
Dulles : Guatemalan situation
Dulles : Haile Selassie's visit
Dulles : Adnan Menderes' visit
Protocol to convention with U.K.
Dulles : Five-power military talks
Dulles ; Statement on Indochina
Dulles : Rio Treaty
Treaty with Iceland
Construction of Libby Dam
Convention with Belgium
Ethiopian agreement registered
Foreign Relations volume
Delegation to Labor Conference

♦Not printed.

tHeld for a later issue of the Bulletin.

274

5/24

*275

5/24

*276

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5/25

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t282

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5/27

|288

5/27

289

5/28

t290

5/28

t291

5/2S

U. S. GOVERNMENT PRINTING OFFICE) I9B4

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Foreign Relations of the United States . . .
the basic source of information on U.S. diplomatic history

1936, Volume V, The American Republics

Besides dealing with multilateral aspects of economic and
political questions involving the United States and other Ameri-
can Republics, this volume includes also correspondence on the
bilateral relations between the United States and the govern-
ments of 19 American Republics.

Of chief interest in the record on multilateral negotiations
are (1) the preliminary documentation on the Inter- American
Conference for the Maintenance of Peace held at Buenos Aires ;
(2) correspondence on the Chaco Peace Conference, which
achieved agreement of Bolivia and Paraguay to a Protocolized
Act putting into effect recommendations of the Conference, and
resumption of diplomatic relations between the two former
belligerents.

More than two-thirds of the correspondence on bilateral rela-
tions is concerned with commercial and financial topics, par-
ticularly with the reciprocal trade agreements program.

Copies of this volume, the last to be issued in the series of
five Foreign Relations volumes for the year 1936, may be pur-
chased from the Superintendent of Documents, Government
Printing Office, Washington 25, D.C., for $4.50 each.

Order Form

o: Supt. of Documents Please send me copies of Foreign Relations of the United

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Vo. 781
June 14, 1954

"axes •>*

EDUCATION AND FREEDOM— CORE OF THE AMER-
ICAN DREAM • Address by the President 899

MAINTAINING FREE WORLD UNITY • Statement by

Secretary Dulles 921

AMENDING THE ATOMIC ENERGY ACT • Statement

by Secretary Dulles 926

THE KOREAN PEOPLE'S RIGHT TO UNITY AND IN-
DEPENDENCE • Statement by Under Secretary Smith . . 915

FOREIGN TRADE AND MILITARY POLICY • by H.

Struve Ilensel 919

GLOBAL RELATIONS OF THE UNITED STATES •

Article by S. Whiltemore Boggs 903

For index see inside back cover

1

Boston Public L 'lary
Superintendent of Documents

JUL 16 1954

^Ae zl^e/icL'iitmeTtt <a^ t/late

bulletin

Vou XXX. No. 781 • PcBUCATioN 5503
June 14, 1954

For sale by the Superintendent of Documents

U.S. Government Printing Office

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Peice:

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Single copy, 20 cents

The printing of this publication has
been approved by the Du-ector of the
Bureau of the Budget (January 22, 1952).

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

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, 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 De-
partment of State and the Foreign
Service. The BULLETIN .includes
selected press releases on foreign pol-
icy, issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various piloses of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

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

Education and Freedom — Core of the American Dream

Address hy the President ■

White House press release dated May 31

This occasion has for me particular signifi-
cance because, for a time, I was intimately asso-
ciated with those whose lifework is the education
of America's youth. I am very proud that,
through a brief span in Columbia's 200-year his-
tory, my name was closely joined with that of this
great institution. For such expression of per-
sonal pride in an association with a home of
learning, I have illustrious predecessors.

Thomas Jefferson, for one, at the end of his
long life, preferred that posterity should think of
him, not as the holder of high office, but for his
relationship to the University of Virginia.

He held that the free flow of information was
indispensable to the maintenance of liberty. He
wrote that if he had to make a choice between a
society without newspapers or newspapers with-
out a government, he would prefer the latter.
And, of the diffusion of knowledge among the
people through schools, he said: "No other sure
foundation can be devised for the preservation of
fi'eedom and of happiness."

A relentless foe of tyranny in every guise, Jef-
ferson throughout his life was steadfast to a fun-
d.imental tenet of Western society, proclaimed
2, HOG years ago in the treasury of the Temple at
Jerusalem, that the truth will make men free.

The pursuit of truth, its preservation and wide
dissemination; the achievement of freedom, its
ili'fense and propagation — these purposes are
woven into the American concept of education.
The American university — neither the property of
a favored class, nor an ivory tower where vision-
aiies are sheltered from the test of practice —
e\ cry American university fundamentally is ded-
icMted to Columbia's Bicentennial tlieme, "Man's
riL'-ht to knowledge and the free use thereof."

Tliose who chose the theme of this Bicentennial
fduld not have found a more American one. I
s:iy this with apology to scholars of all countries,

' Made on May 31 at the Columbia University National
Bicentennial Dinner at New Yorlj City.

lest they think that I might be deliberately nar-
rowing a universal principle to a provincial appli-
cation. But from the very beginning of the Re-
public, education of the people, freedom for the
people — thase interdependent purposes have been
the core of the American dream.

Far from being fearful of ideas, the founders
of the Republic feared only misguided efforts to
suppress ideas.

No less profound was their faith in man's ability
to use freedom, for the achievement of his own
and his country's good. In the freedom of the
individual, they saw an energy that could hurdle
mountains, harness rivers, clear the wilderness,
transform a continent.

So convinced, they proclaimed to all the world
the revolutionary doctrine of the Divine Rights
of the Common Man. That doctrine has ever since
been the heart of the American faith. Emphatic
rejection of this faith is the cardinal characteristic
of the materialistic despotisms of our time.

In consequence, the world, once divided by
oceans and mountain ranges, is now split by hostile
concepts of man's character and nature. Physical
barriers and their effects have been largely sur-
mounted. But new barriers seem more insuper-
able than the old.

Two Opposing Camps

Two world camps, whose geographic bound-
aries in important areas are mutually shared, lie
farther apart in motivation and conduct than the
poles in space. One is dedicated to the freedom
of the individual and to the right of all to live
in peace ; the other, to the atheistic philosophy of
materialism and the effort to establish its sway
over all the earth. Watching the two opposing
camps are hundreds of millions still undecided in
active loyalty.

Today, there is no more important knowledge
foi- each of us to understand than the essential
characteristics of this struggle.

June 14, 1954

899

One fact stands out stark and clear : Of all who
inhabit the globe, only relatively small numbers —
only a handful even in Russia itself — are fixed
in their determination to dominate the world by
force and fraud. Except for these groups in the
several nations, mankind everywhere — those who
still walk upright in freedom, those who hesitate
in neutralism, those who must bow to commu-
nism— mankind everywhere hungers for freedom,
for well-being, for peace. Now, how can a few
men thwart the will of hundreds of millions?

Because, answering to no judge in conscience or
in public opinion, they are engaged in a relentless
and highly organized world campaign of deceit,
subversion, and terrorism. And, opposed to them,
there is no single, global effort to promote knowl-
edge and cooperation.

They preach a material dogma that is abhorrent
to us, a dogma coated with false promises. And
they speak it with a single and a tireless voice,
while the free world speaks with diverse tongues
a message that demands from each responsibility,
perseverance, and sacrifice.

Our opponents focus all the weight of govern-
ment on tne single objective they have chosen as
the next goal. The free world uses government
for the furtherance of human happiness, a front
so broad that forward movement is at times almost
imperceptible.

To spread their falsehoods, the few who seek
world domination possess a global organism cease-
lessly engaged in carrying out the orders of their
masters. To give the world the truth, the free
nations rely largely on the volunteer efforts of
individuals — efforts often weak because they are
intermittent and uncoordinated.

Possibly in no other way do the Communists so
clearly exhibit their fear of the free world achiev-
ing real unity as in their persistent efforts to divide
and thereby weaken us. They exploit every dif-
ference of view among independent nations to
make honest discussion falsely appear, not as a
valued characteristic of free systems, but as indica-
tion of mutual hatreds and antagonisms. This
doctrine of divide and conquer they apply not only
as between nations but among groups and indi-
viduals of the same nation. They ceaselessly at-
tack our social, industrial, educational, and spirit-
ual institutions and encourage every type of in-
ternecine struggle of whatever kind.

It is very easy to become an unwitting tool or
ally of such conniving. For example, there is
no other subject or purpose in which Americans
are so completely united as in their opposition to
communism. Yet, my friends, and I say this
sadly, is there any other subject that seems, at this
moment, to be the cause of so much division among
us as does the matter of defending our freedoms
from Communist subversion? To this problem
we must apply more knowledge and intellect and
less prejudice and passion. Above all, we must
not permit any one to divert our attention from

900

the main battle and to inspire quarrels that even-
tually find good citizens bitterly opposed to other
good citizens, when basically all would like to be
joined in effective opposition to communism.

Now, we must of course require from the govern-
mental organizations set up for our internal and
external security the utmost in vigilance, energy,
and loyalty. We must make certain through con-
stant examination that they are so performing
their duties. Let us provide any additional laws
or machinery necessary to protect America — re-
membering that protecting America includes also
the protection of every American in his American
rights. Let us not lose faith in our own institu-
tions and in the essential soundness of the Ameri-
can citizenry, lest we — divided among ourselves —
thus serve the interests and advance the purposes
of those seeking to destroy us.

The Soviet Communists claim that their cause is
timeless, possibly requiring an entire era to achieve
desired results. But they know that the truth of
freedom possesses an unchanging validity and a
cumulative power as more millions learn of it.
So the dictators seek to deny to the world the time
and opportunity to learn the truth of both com-
munism and freedom. The power-hungry few are
therefore persistently aggressive.

In this situation, we, the American people, stand
committed to two far-reaching policies —

First and foremost: We are dedicated to the
building of a cooperative peace, based ujion truth,
justice, and fairness.

Second : To pursue this purpose effectively, we
seek the strengthening of America — and her
friends — in love of liberty, in knowledge and com-
prehension, in a dependable prosperity widely
shared, and in a military posture adequate for
security.

In these two policies, there is no iota of aggres-
sion, no intent to exploit others or to deny them
their rightful place and space in the world. This
consideration of others — this dedication to a world
filled with peaceful, self-respecting nations — finds
its only opposition in militant totalitarianism.

It we are to work intelligently in the cause of
freedom, we must study and understand these
factors in the world turmoil.

Even when so armed with knowledge, it is not
easy for the free world's representatives to nego-
tiate successfully with those who either cannot or
will not see the truth or admit the existence of
obvious fact.

But surely, even the men in the Kremlin must
realize that before all mankind now lies a grand
prospect of a far better life for everyone. Its
achievement requires only that the scientists of
every nation concentrate on the means to a plenti-
ful life rather than on the tools of sudden death;
that the millions now under arms be released to
fruitful work; that industries of war be con-
verted to the production of useful goods. We

Department of State Bulletin

have sought and will seek to make this prospect
a reality.

Knowledge of the efforts being made by our own
nation to lead the world to this goal is another
item of information important to every citizen.

The present administration assumed office 16
months ago, fully aware of the ruthless mamier in
which the Communists negotiate, conscious of the
undependability of their agreements. But we
believed that this country's foreign policy must
be dedicated to uni'emitting effort for the preser-
vation of peace, within the enlightened self-in-
terest and fundamental objectives of the United
! States. Partisan purposes, personal attitudes, all
!the pressures of lesser interests, we believed, had
to be subordinated to this paramount goal.

We knew that every negotiation with the Com-
munists would be fraught with traps and pitfalls,
ibut we knew, too, that positive, determined, day-
I to-day toil would pay real dividends among the
jfree nations. "VVe sought a rebirth of trust among
I all nations, an enduring foundation for a coopera-
tive peace — not a mere breathing space free from
inuninent crisis.

Every measure we have proposed has been con-
ceived as a step toward this rebirth of trust. These
j proposals have included an honorable armistice in
Korea; a free and united Germany; a liberated
Austria ; a secure Indochina and Southeast Asia ;
atomic energy harnessed for peaceful purposes
under international control.

A New Principle of Freedom

The first has been achieved. The armistice in
Korea, moreover, inaugurated a new principle of
freedom — that prisoners of war are entitled to
cl loose the side to which they wish to be released.
In its impact on history, that one principle may
wi'igh more than any battle of our time.

Negotiations to unify Germany have been, for
the time being at least, nullified by Soviet demands
fnr a satellite climate in that country. With re-
sjtcct to Austria, the United States, Great Britain,
and France agreed to accept state treaty terms
wliich up to that moment had been acceptable to
tlie Soviet Union. But once this acceptance was
announced, the Soviet Union immediately in-
vented new conditions which would enable it, for
;in indefinite period, to keep military occupation
ill Austria.

To such a plan we could not agree. Far better,
this administration believes, that we end the dis-
cussion with the issue still vmresolved than to
(■oinpi'omise a principle or to accept an agreement
w hose price might be exacted in blood years hence.

In our effort to find the ways by which tlie
miraculous inventiveness of man should not be
ileilicated to his death, but consecrated to his life,
there have been written exchanges of views be-
tween the United States and the Soviet Union.
Secretary of State Dulles has personally conferred

June 14, 1954

both at Berlin and at Geneva with the Soviet
Foreign Minister, Mr. Molotov. These have not
been productive of the results we seek, but we, on
our side, are continuing exchanges of views and
consultations with the other free nations princi-
pally involved.

We intend to proceed with these and other like
negotiations, confident in the merits of our cause,
realistic in our appraisal of Soviet intention, and
assured that our purposes and hopes will survive
even the most frustrating series of talks.

To be successful, our peaceful purposes and
hopes must of course be clad in obvious truth and
constantly proclaimed to the world. Our actions
must stand examination by every eye — friendly
and hostile and doubtful. "We must be forthright
and patient in presenting them. Scarcely could
we devise, for the cause of peace, a more fitting
battle cry than the theme of the Columbia Bicen-
tennial : "Man's right to knowledge and the free
use thereof."

Let us not, however, define truth or knowledge
of the truth solely in the narrow terms of mere
fact or statistic or mathematical equation. Wis-
dom and human understanding — a sense of pro-
portion— are essential. Knowledge can give us
nuclear fission; only wisdom and understanding
can assure its application to human betterment
ratlier than to human destruction.

In this light, the Columbia theme is a dynamic
idea, a true offspring of the revolutionary doctrine
proclaimed by our forefathers. We should preach
it — and practice it — fearlessly.

Here, tonight, in this brilliant company and
pleasant surroundings, we might easily take for
granted, as assured through all time, the preser-
vation and the free use of Iniowledge. Two hun-
dred years of Columbia history and the existence
of thousands of other institutions of learning in
our country seem to give validity to such assur-
ance. But can we be sure that possession of theso
values, even by ourselves, is as indestructible as it
is priceless ? The bleak history of a dozen nations
insistently warns us differently.

Always and everywhere, even though they may
never have experienced it — even though they know
its values only in their instincts rather than in
their minds — men have sought personal liberty;
have fought for it; have died for it.

Nevertlieless, within the past few decades, the
whole philosopliy of our founding fatliers has
been rejected by powerful men who control gi'eat
areas of our planet. The revolutionary doctrines
of our free society have not, to America's amaze-
ment, swept around the world. Rather, we have
too often seen the counterattacks of fascism and
of communism substitute for them the police state,
with suppression of all liberties and free inquiry.
We have too often seen education perverted into
an instrument for the use and support of tyranny.

Beyond this, these few decades have seen science
confer upon man teclmical processes whose colos-

901

sal destructiveness, the virtual obliteration of
space as a protective shield, has brought all of us
to the frontline of any new war.

Amid such alarms and uncertainties, doubters
begin to lose faith in themselves, in their country,
in their convictions. They begin to fear other
people's ideas — every new idea. They begin to
talk about censoring the sources and the commu-
nication of ideas. They forget that truth is the
bulwark of freedom, as suppression of truth is the
weapon of dictatorship. We know that when cen-
sorship goes beyond the observance of common
decency, or the protection of the nation's obvious
interests, it quickly becomes, for us, a deadly
danger. It means conformity by compulsion in
educational institutions; it means a controlled
instead of a free press ; it means the loss of human
freedom.

The honest men and women among these would-
be censors and regulators may merely forget that
the price of their success would be the destruction
of that way of life they want to preserve. But the
dishonest and the disloyal know e.xactly what they
are attempting to do — perverting and undermin-
ing a free society while falsely swearing alle-
giance to it.

Whenever, and for whatever alleged reason,
people attempt to crush ideas, to mask their con-
victions, to view every neighbor as a possible
enemy, to seek some kind of divining rod by which
to test for conformity, a free societj' is in danger.
Wherever man's right to knowledge and the use
thereof is restricted, man's freedom in the same
measure disappears.

Our Heritage of Dissent

Here in America we are descended in blood and
in spirit from revolutionaries and rebels — men
and women who dared to dissent from accepted
doctrine. As their heirs, may we never confuse
honest dissent with disloyal subversion.

Without exhaustive debate — even heated de-

bate— of ideas and programs, free

government

would weaken and wither. But if we allow our
selves to be persuaded that every individual — or
party — that takes issue with our own convictions
is necessarily wicked or treasonous, then indeed
we are approaching the end of freedom's road.
We must unitedly and intelligently support the
principles of i\jnericanism.

Effective support of principles, like success in
battle, requires calm and clear judgment, courage,
faith, fortitude. Our dedication to truth and
freedom, at home and abroad, does not require —
and cannot tolerate — fear, threat, hysteria, and
intimidation.

As we preach freedom to others, so we should
practice it among oui-selves. Then, strong in our
own integrity, we will be continuing the revolu-
tionary march of the founding fathers.

As they roused in mankind the determination
to win political freedom from dynastic tyranny,
we can ignite in mankind the will to win intel-
lectual freedom from the false pi'opaganda and
enforced ignorance of Communist tyranny.
Through knowledge and understanding, we will
drive from the temple of freedom all who seek
to establish over us thought control — whether they
be agents of a foreign state or demagogues thirsty
for personal power and public notice.

Truth can make men free ! And where men are
free to plan their lives, to govern themselves, to
know the truth, and to understand their fellow
men, we believe that there also is the will to live
at peace.

Here, then, in spite of A-bombs, H-bombs, all
the cruel destructiveness of modern war; in spite
of terror, subversion, propaganda, and bribei-y,
we see the key to peace. That key is knowledge
and understanding — and their constant use by
men everywhere.

Today, of course, we must have infantry — and
planes and shii)s and artillery. Only so can we
be sure of a tomorrow and the opjiortunity to con-
tinue the mobilization of spiritual and intellectual
energies. But there is no time to waste if truth
is to win the war for the minds of men! Here
is the unending mission of the university — indeed,
of every educational institution of the free
world — to find and spread the truth !

We send professors, scholars, and students out
to the schools of the free world, to promote under-
standing of us even as they grow in knowledge
and in understanding of others. This practice
must be accelerated.

We find room in our own schools for tens of
thousands of young men and women from other
lands who within tlie American community learn
the truth about us and give understanding of their
own people. This effort must be expanded.

The purposes of the f i-ee world must not be too
limited! Our goal is not merely to react against
inroads of Communist lies and attacks. That
would be endless and profitless; the tactics of
falsehood are limitless. We must join with our
friends in a crusade of truth. We must make
our aim the building of peace in justice and free-
dom. That is a worthy objective and a golden
reward. Under God, the united energies of free
people can attain it.

''The prospect now before us in America," wrote
John Adams in 17G5, "ought to engage the atten-
tion of every man of learning to matters of power
and of right, that we may be neither led nor driven
blindfolded to irretrievable destruction." And he
ended by saying, ''Let every sluice of knowledge
be opened and set aflowing."

Tonight I think it fitting to repeat John Adams'
exhortation, confident that, prompted by reason
and armored by faith, we shall s])eed the advance
of knowledge and liberty on their hand-in-hand
journey along the avenue of the ages.

902

Department of Sfofe Bulletin

Global Relations of the United States

hy S. Whittemore Boggs

Even the colonial beginnings of the United
States may be regarded as dimly prophetic of the
worldwide relationships of the present time.
Edmund Burke, in his famous speech on concilia-
tion with the Colonies, paid eloquent tribute to
the hardihood and skill of the colonial American
whalers ; and the whale fisheries of the world be-
came predominantly Ainerican for decades, well
into the 19th century. The American Declaration
of Independence expressed "a decent respect to
the opinions of mankind." The American flag
first appeared at Canton, China, in 178-i, and
Antarctic sealskins came to be important in the
"China trade" a little later.

But beginning with the turn of the 20th cen-
tury, there came a great change in the external
relations of the United States. They have at-
tained truly global proportions — in economics,
international politics, and cultural relations. No
head-in-the-sand psychosis, no delirimn of chau-
vinism, can eradicate the fact that the United
States has unwittingly and ineradicably achieved
global relations. Today there is not a cranny of
the globe that is not good for a headline even in
a smalltown newspaper in the United States, if
there is a news item sufficiently lurid or frighten-
ing or appealing to our sympathies. Wliile some
persons, if it were possible, would probably roll
up the oceans, build a high wall around our bor-
ders, or secede from the earth, even such extrem-
ists would not deny themselves the use of an auto-
mobile or a radio simply because it incorporates
many materials which can be obtained most eco-
nomically only from other continents or distant
islands — tin for solder, aluminum, manganese,
rubber, vanadium, and scores of other items. A
brief article, even if devoted solely to the world-
wide economic relations of the United States,
could scarcely do full justice to that single phase
of our global relations.

All of the earth's nearly 2,500 million human
inhabitants now live in a world of continually
expanding relationships. Our fascinating little

earth seems to be a "rapidly shrinking world"
only because of the ever geographically widening
outreach of communications, transport, and travel
available to individual human beings and so-
cieties— which is the truly significant factor.
These new powers do not solve world problems;
they ameliorate a few, create new ones, and aggra-
vate others. We recall the story of "Benny and
the Bird-dogs" by Marjorie Kinnan Eawlings:
"Now putting an automobile under Uncle Benny
was like putting wings on a wild-cat — it just
opened up new tei'ritory."

Roadblock To Understanding Global Relations

A serious roadblock to understanding the new
global relations of the United States is misconcep-
tion of simple geographical relationships. This
is in large jjart due to widespread use of Mercator
and some of the other world maps in school text-
books, newspapers, and now even on television.
It is disconcerting to discover how many people
are quite oblivious to the characteristics of the
maps they use. And among those whose job it is
to prepare maps — seldom geographers or cartog-
raphers— few have an adequate knowledge of map
projections and of the properties of the maps they
make with which to convey basic information.
The Mercator is used more frequently than all
other projections put together, and almost never
does one see an equal-area projection. The fact
that the world is round is taught, I suppose, in all
American schools. And most people have been
told that a great circle is the shortest route be-
tween two points on earth.

The fact that, between any two given points on
the earth, the "great circle route" is shorter than
any "small circle route" is illustrated by the fol-
lowing problem : A man has a gun that will
shoot only 30 rods ; he sees, shoots, and kills a bear
that is 40 rods due east of him. How do you ac-
count for it? And what is the color of the bear?

June ?4, J 954

903

The answer, of course, is that the man and the
white polar bear are standing on meridians which
are 180° apart, so that they are diametrically op-
posite across the North Pole, and that both are
12.73 rods from the pole. The "small circle"
parallel of latitude on which both man and bear
are located therefore has a circumference of 80
rods ; and the bear is both 40 rods due east and 40
rods due west of the man (figure 1).

Figure 1.

Man shooting polar bear 40 rods due east
of him

The diameter, 25. ^G rods, which is a meridian and there-
fore a great circle, is less than the IfO-rod scmieircuinfer-
ence of a "small circle," which is, of course, a parallel of
latitude. The bear is thus both //O rods due east and ^0
rods due west of the man, hut only 25.Ji() rods north and
soutli from the iitan — across the North Pole.

Very few people know what a series of great
circle routes looks like on a Mercator or any other
map (figure 2). Certainly from the maps they
use (always flat) they don't almost instinctively
visualize world relationships as they exist on the
round world we live on.

It would be surprising if a few of the facts
which are presented below do not surprise even
some professional geographers. Misconceptions
of the shape and size of the territory of the Soviet
Union, for example, are among tlie most widely
entertained. How many realize that the distance
east-west across Africa, from Dakar to Cape
Guardafui, is almost the same as the distance from
Odessa, on the Black Sea, near the southwestern
corner of the U.S.S.E., to Bering Strait and that
the great circle between those two Russian points
passes between Moscow and Leningrad and be-
tween Murmansk and Arkhangelsk and within
five degrees of the North Pole ?

People in the United States think of Buenos
Aires and Montevideo as being in "this hemi-

sphere" and therefore relatively' near, but seldom
realize that those two South American cities are
as far from Washington, D. C, as are Istanbul,
Turkey; Igarka, U.S.S.R., in Siberia (on the
Yenesei Eiver) ; and the westernmost of the
Aleutian Islands. Santiago, Chile, is farther
from Washington tlian is Moscow. Mexico City
is nearer Washington by nearly 500 statute mileSj
than is Los iVngeles, Calif.

A good corrective of American geogi'aphical
ideas is "World View and Strategy" by Ricliard
E. Harrison and Hans W. AVeigert in Compass
of the World. Professor Hal ford J. Mackiiuler,
busy "setting up the teaching of ])olitical and his-
torical geography at tlie universities of Oxford
and London," and "noting current events with
a teacher's eye for generalization," presented his
paper that later became famous, "The Geographi-
cal Pivot of Historj'," in Jaiuiary 1904. His most
important map, called "The Natural Seats of

I

Figure 2. A family of great circles on a Mercator-type
map

This is part of a series of great circle routes plotted on
a Miller cylindrical projection — which is a mathenuitieal
moditication of a Mercator projection, placing the paral-
lels of latitude closer together, and hringing the geographi-
cal poles within a finite distance of the eiiuator. Only the
nortliern half of the so-called Western Uemisphere is
shou'^i above. If continued around the world each of
these great circles would constitute a mirror image in the
southern half of the Eastern Hemisphere, likewise ter-
minating at 0° latitude, 180° longitude.

When an extensive series of such great circle courses w
printed on transparent plastic it may be moved to the
right or left on the map {keeping the equators of map and
diagram always together), so as to bring any tico points
on the earth's surface onto one of these curves — or on a
curve readily interpolated between two that arc printed.
The great circle course and approximate distance between
any two points may thus be readily determined.

A map of the icorld, equatorial scale 1: 30,000,000, ap-
proximately 57 X 35 inches, loith relief in color, and with
a series of SO complete great circle courses similar to
those illustrated above printed on tlie back, ioas prepared
for the Department of State by the American Oeographical
Society. Copies may be purchased from that Society,
Broadway at 156th Street, Xeic York 32, N. Y., for $1
folded, or $2.50 in a mailing tube; but the order should
specify that a copy of the map with a "great circle nomo-
graph" on the back is desired.

904

Department of State Bulletin

Power," was on the Mercator projection, but with-
out parallels and meridians, and limited by an
ellipse. Weigert, analyzing Mackinder's reap-
praisal in his paper on "The Round World and the
Winning of the Peace," ^ remarks ". . . from
Mercator he turns to the globe," but he also
pointed out that "The great circle which Mac-
kinder describes does not in fact cut the coast of
France but passes to the north of Greenland.
Thus he showed himself to be an unwitting pris-
oner of Mercator." ^

One of the best correctives of geographical mis-
conceptions, in my opinion, is the article entitled
"The Myth of the Continents" by Eugene Staley,
an economist, in Foreign Affairs in 1941. He
points out that so-called "continental solidarity"
is largely a figui-e of speech and that the oceans
tend to unify more than the continents.^

We need to realize that most world maps con-
stitute merely a conventional device for portray-
ing geographical distributions as they are found
at different latitudes and longitudes. There is no
magic means of transferring to a globe the con-
cepts conveyed by maps. The most effective
means I know of for visualizing the peculiar prop-
erties of various map projections is to substitute
a human head for the geographical globe as
seen in the photographs in figure 3. The eyes
are on the equator; the center of the nose is on
the Greenwich meridian ; the circular cap is much
easier to copy than hair. This human head has
been transferred to a nmnber of the most widely
used map projections, as if the eyes, nose, mouth,
ears, chin, and cap were land masses. Here are
shown (figure 4) the results of mapping the world
on familiar projections. Such "maps" are, in a
sense, caricatures of the human head represented
and could scarcely serve to identify the contest-
ants in a beauty contest or to record the faces in
a rogues' gallery.

Maps centered at the North Pole are sometimes
Ijresented as if they were a new idea that readily
corrects the misconceptions derived from Mer-
cator and other maps. Actually such maps have
been made for several centuries. To visualize
some polar geography, we have here a map of
that part of the northern hemisphere north of 30°
north latitude, drawn on a gnomonic or gi'eat
circle projection, centered at the North Pole
(figure 5). Every straight line on any gnomonic
projection describes a gi-eat circle course. Con-
sider the advantages of commercial aviation at
Thule, Greenland, if and when it becomes possible.
Nothing would better illustrate the new rela-
tions of the United States. I spent the last 4
days of April 1953 at the great Thule Air Force

'Published in Foreign Affairs, July 1943, p. 595; and,
in slightly different form, in Compass of the World, 1944,
p. 161.

^ New Compass of the World, pp. 87, 88.

' Compass of the World, pp. 89-108.

Figure 3. Human head on a geographical globe

This head of a man was drawn upon a geographical
globe by the artist, Boris Artzybasheff. The nose is cen-
tered on the Greenwich meridian, and the eyes are on the
equator. This was made to facilitate graphic studies of
the properties of world maps on various map projections.

Base, near 76°30' north latitude, 69° west longi-
tude. Located within 810 nautical miles of the
North Pole, about 2,250 nautical miles from Wash-
ington, and 2,400 nautical miles from Moscow,
Thule is open to supply by steamships for about
70 days each summer — when all possible supplies
for the year are transported and stored. Since it
lies 10° north of the Arctic Circle and therefore
much farther north than North Cape, Norway, or
Point Barrow, Alaska, commercial air passengers
could stop off at Thule between flights and enjoy
the "midnight sun" — continuously above the hori-
zon during about 4 months (April 23 to August
21 ) ; for only about 98 days ( November 4 to Febru-
ary 11) is the sun continuously below the horizon.
Air routes between many northern hemisphere
cities will eventually be established that will
traverse at least short stretches of the Arctic Sea.
Thule will be found near the gi'eat circle routes
connecting northern and eastern Europe with cen-
tral and western North America — which should
carry heavy air traffic.

United States Hemispheres

But the world is round any way you look at it.
Viewed from a spaceship, say from 10 million
miles away in any direction whatever, practically
a full hemisphere would be seen, bounded by a
circle. The number of hemispheres is therefore

June 14, 1954

905

Figure 4. Human head on seven well-known map
projections

The man's head shown in figure S is here presented on
the following well-known map projectimis, as if the nose,
eyes, month, ears, chin, and cap were land masses: (a)
Mercator projection {because the North and South Poles
are at inflnity they cannot he shown on such a map);
(6) Miller cylindrical projection, a mathematical modi-
fication of the Mercator, vnth all parallels of latitude
closer together than on Mercator, and with both geograph-
ical poles represented by straight lines as long as the
equator; (c) polar equidistant, the center of construction
being at the North Pole in this instance; {d) azimuthal
equidistant, the center of the projection being at Wash-
ington, D. C; (e) Van der Qrinten projection; (f) sinus-
oidal equal-area projection, as sometimes interrupted to
avoid breaking the continents; and (g) two azimuthal
equal-area projection hemispheres.

infinite. For Americans it is particularly illumi-
nating to consider a few of the hemisphei-es which
include all of the United States. I undertook
something of this sort in 1945 in a paper entitled
"This Hemisphere".'' The map illustrations used
with the present article are, with two exceptions,
different.

As a background for consideration of most of
the maps appearing with this ai'ticle, consider
the seven major "culture worlds" that have been
so well defined by Russell and Kniffen, here out-
lined on a map of world population distribution!
on an equal-area projection (figure 6). Within'
the last year all of these seven "culture worlds"
except the Polar world have been the scenes of
special missions of Secretary Dulles, Vice Presi-
dent Nixon, or Milton Eisenhower. In five of
these culture regions international conferences
have been attended by official delegates of the
United States within the hist year. Dr. F. S. C.
Northrup, in his recent book. The Ta7ning of the
Natians: A Study of the Cultural Bases of Inter-
national Policy, develops the significance of these
culture regions in the constructive evolution of J
international relations.

So-Called Western Hemisphere

Americans sometimes speak as if the one hemi-
sphere in which the United States is located is the
so-called We.stern Hemisphere.

The line separating tlie mapmaker's conven-
tional Western and Eastern Hemispheres is the
pair of meridians 20° west and l(iO° east of Green-
wich. This line is wholly lacking in geographical
significance (figure 7).

It seems appropriate here to speak of the un-
planned development of our regional terminology.
For several years I have been suggesting the de-
Europeanization of our terminology relating to
major geogi-aphical regions and its universaliza-
tion instead. It is time to be done with "western"
and "eastern hemispheres" and the rest and to
begin em])loying terms that are objective and fully
acceptable to the people living in the areas con-
cerned. Perhaps "the American hemisphere"
should be acceptable for the American continents
and islands, including Greenland, although the
Americas support only about 1.3 percent of the
world's population on 30 percent of its land area.
"Middle West" relating to the middle western
United States is, of course, not objectionable, but
I can think of no orientation of the globe that justi-
fies the terms "Middle East" and "Far East."
"Eastern Asia," "Southern" or "South Asia,"
"south central Pacific," and similar terms are, in
my opinion, preferable from every standpoint.
Incidentally, the adjective and noun "Asiatic"

' Bulletin of May 6, 1945, p. 845 : reprinted in .Journal
of Geography, Dec. 1945, p. 347, and in Foundations of Na-
tional Power, edited by Harold and Margaret Sprout, p.
607.

I

906

Departmenf of State Bulletin

should be replaced by "Asian," which is analogous
to American, African, European, Eurasian, and
Australian.

Panama-Tokyo Hemisphere

The hemisphere shown at the left in figure 8 is
centered midway between the city of Panama and
Tokyo (two Pacific ports) on the connecting gi-eat
circle route of 7,320 geographical or nautical miles.
Traveling by air from Panama, one crosses the
Caribbean Sea, Yucatan, the Gulf of Mexico, the
United States (passing near Galveston and Salt
Lake City), covering 43 percent of the total dis-
tance before reaching the Pacific Ocean near the
moutli of the Columbia River; then across the
north Pacific and over the Aleutians, crossing the
southern part of the Bering Sea and passing
within 400 miles of Kamchatka before reaching
Tokyo. The white ocean area on the Miller cylin-
drical map at the right is the same liemispliere
with the same Panama-Tokyo great circle route
appearing as a curve. Of the seven Russell-
Kniffen ^'culture worlds," this hemisphere em-
braces much of the American and the Oriental,
all of the Polar culture world, and some of the
European.

WOSLD: OlSTHBOTION Of fOfULATIOK

Figure 5. Part of the Northern Hemisphere

That part of the Northern Hemisphere which is north

of SO" north latitude (approximately the latitude of New

I Orleans, La., of Cairo, Egypt, and of Lhasa, Tibet) is

hrre mapped on a gnomonic or great circle projection,

i-riilcred at the North Pole. On this projection, all great

ciiiie routes are straight lines, and all straight lines trace

firciit circle routes betiveen all points on those lines. The

I linear scale increases rapidly outward from the center

I of the projection.

I Note how many straight lines connecting points named
I on the map cross the Arctic Ocean. Also note the ad-
I vantages of Thulc, in Northwestern Greenland, in relation
to many of these cities.

Figure 6. The seven major "culture worlds" of Russell
and Kniffen, superposed on a world popula-
tion map on an equal-area projection, each
small dot representing 50,000 people

These "culture icorlds" arc: {1) Polar world; (2) Eu-
ropean world not part of Asia; (3) Dry ivorld, both hot
and cold deserts; (.',) African world south of the Sahara;
(5) Oriental world; (6) American world; and (7) Pacific
loorld. The "transition zones" are not represented in
detail on this map. In describing nearly all the maps
that follow, the inclusion or the exclusion of these "culture
worlds" is mentioned.

Moscow-Centered Hemisphere

It may seem odd to include the hemisphere cen-
tered at Moscow (figure 9) among the hemispheres
including all the United States. But it does
barely include San Diego, Calif. And it includes,
as may be noted on this pair of maps, all of Africa
and Asia, a northeastern fringe of South America,
and much of Indonesia. It therefore embraces
the larger part of the world's population and all
or much of the larger part of all the seven "culture
worlds" except Latin America and the Pacific.

A North Atlantic Hemisphere

This hemisphere (figure 10) barely includes all
of North and South America on its western edge —
Cape Horn and the easternmost Aleutian Islands.
Its center proved to be in the north Atlantic, at
28° N. and 31° W., and a great circle through that
point somewhat east of South America passes be-
tween Greenland and Iceland. The western half
of this hemisphere (a mere quarter sphere) thus
embraces all of the land in the so-called Western
Hemisphere, while the eastern half includes all
of Europe and Africa (with most of Madagascar)
and more than 40 percent of the area of Asia. Of
the seven "culture worlds," only the larger part
of the "Oriental" and all of the "Pacific" are
lacking. Somewhat more about this interesting
hemisphere was presented in my earlier paper
referred to.

June 14, 1954

907

Figure 7. The map-maker's conventional Western and
Eastern Hemispheres

The usual line of separation is the pair of meridians
Z0° west and 160° east of Orecnwich. The white-ocean
hemisphere at the bottom on the left, atid in the center
of the world map on the Miller cylindrical projection map
at the top, is the conventional Wcslern Hemisphere, and
the other is the equally eonrrnlional Enstcrn Ileiiiixphere.
The map at the top shows that litis Wcstirn Hciiiisplicrc
is exactly as much east as it is west of the ICastcrn
Hemisphere. The letters N and ti are at the north and
south geographical poles. The letters A to F inclusive
are at identical points oti all three maps, and the curved
lines on the Miller map are identical with the correspond-
ing straight lines (great circles) on the two circular
hemisphere maps. O is the center of the Western Hemi-
sphere and P is the center of the Eastern Hemisphere.

Sum Total of All U.S. Hemispheres

If a transparent plastic hemisphere be so j^hxced
on a globe that it just covers the United States
and touches at the northernmost points of Wash-
ington and Maine, it will cover the hemisphere
shown at the left in figure 11, which includes Ant-
arctica and southeastern Australia, as well as
South America and major parts of the Atlantic,
Pacific, and Indian Oceans.

A series of four or more similar hemispheres
may be mapped, tangent successively at the outer-
most points of Maine and Florida, Florida and
Texas, Texas and California, and finally the Pa-

cific coast of the United States. The results are
represented on the world map on the Briesemeis-
ter elliptical equal-area projection (figure 12).
Four of the tangent great circles that limit the
hemispheres embracing all of the United States
are shown, each in a distinctive line symbol com-
pletely encircling the earth. These include the
tangent lines AB, BC, DE, and EA (omitting
CD) . These great circles, tangent to the inverted
outline miri-or image of the United States in the
Indian Ocean, outline the only part of the earth
no part of which can be included in a hemisphere
which embraces the whole of so-called continental
United States (the 48 States and the District of
Columbia). The largest bit of land within that
most remote area is desolate Kerguelen Island —
of interest today only in weather reporting.
Therefore, if someone speaks of "this hemi-
sphere" as the hemisphere in which the United
States is located, it is relevant to ask "Which
hemisphere?"

Thus there is no human being anywhere on
earth who does not live in some hemisphere that
includes all of the United States. This brings to
mind Edwin Markham's quatrain entitled
"Outwitted" :

He drew a circle that shut me out —
Heretic, rebel, a thing to flout.
But Love and I had the wit to win :
We drew a circle that took him in.

The peoples of every "culture world" are there-
fore geographically nearer to the United States
than most of us realize — none so remote that they
do not live in what we might call "an American
hemisphere." The peoples of each of these cul-
tures take natural pride in their own distinctive
way of life, in their religious faith and philosophy,
and in the community of their social institutions.
They do not wish to be indiscriminately mixed
with all the other peoples of the world, as we now
homogenize milk, because each regards itself in
some cherished way as the cream of all the world's

Figure 8. Panama-Tokyo hemisphere

The point O at the center of the hemisphere map on the
left is the point midway on the great circle bettceen
Panama and Tokyo, ichieh is the straight line P-T on this
map, about 7,320 geographical or nautical miles in length.
The white-ocean area on the Miller map at the right is
the same hemisphere, and the curve P-O-T is the same
great circle course.

908

Department of State Bulletin

peoples. At least the Asian peoples of India,
China, and Japan are pardonably proud of the
fact that their forefathers were civilized when the
ancestors of the more aggi-essive peoples now liv-
ing in northern Europe and the United States
were wearing animal skins.

The librarian of a New Hampshire public li-
brary, resjjonding to a questionnaire regarding
the use of globes, replied "If people in general do
not begin to think in terms of the world as a whole,
they are probably doomed." I heartily agree.

It is well to recall the words of Professor Mac-
kinder, in liis famous 1904 address : ". . . we shall
again have to deal with a closed political system,
and nontlieless that it will be one of worldwide
scope. Every explosion of social foi'ces, instead
of being dissipated in a surrounding circuit of un-
known space and barbaric chaos, will be sharply
reechoed from the far side of the globe, and weak
elements in the political and economic organism
of the world will be shattered in consequence." ^

Figure 9. Moscow-centered hemisphere

The hemisphere centered at Moscow, U.S.S.R., is the
white-ocean hemisphere on the left. The small white cross
on both maps is Moscow. It includes most of North
America, all of Africa and Asia, and much of Indonesia —
and thus most of the world's population.

The roundness of the earth is very real in human
relations. A globe is not merely an ornament nor
a backdrop for photographs. The stamp of the
earth's sphericity is evident in all of the world
patterns that have yet been perceived in the geo-
physical, biogeographic, and social sciences, ail of
them hugging closely to the roundness of the earth.
Consider the orogenic (mountain-building) pat-
terns and earthquake zones, the currents of air
(both surface and upper air), and all the other
phenomena of world weather, the ocean currents,
man's routes of travel by air and sea, and his tele-
communication patterns. In the writer's opinion,
the time has come to study logistics seriously on
the spherical surface of the globe: cost-distances
and time-distances by sea routes and land routes
versus air routes, and communications of all sorts.
Eventually even the patterns of man's political

° Geographical Journal, vol. 23, Apr. 1904, p. 422.

Figure 10. An important North Atlantic hemisphere

The straight line AOG through the center point {about
28° N., Sl° W.) divides this North Atlantic hemisphere
into quarter-spheres. The irestern quarter-sphere thus
contains all of North and South America, including Green-
land, and a small portion of Siberia. The eastern quar-
ter-sphere comprises all of Europe and Africa (including
most of Madagascar) and more than 40 percent of the
area of Asia. The limit of the hemisphere, ABCDA on
both maps, in a complete great circle (like the equator or
any meridian circle). The line AOC which divides it
into halves is half of such a great circle, the other half
of which is APC, the dotted line in the shaded half of the
Miller map at the right.

institutions will probably develop, or be discovered
already to bear, the unmistakable imprint of the
global relations of all mankind.

The globality of relations of the United States
is today measurably enhanced by the presence on
our shores of the United Nations. As we recall the
fears of many of our forefathers concerning the
adoption of the Constitution of the United States
of America in 1787-88, we realize how they paral-
lel some of the fears voiced in our own time. They
could not imagine, 166 years ago, how peoples so
diverse as those of our original Thirteen States,
separated from one another by weeks of the most
arduous travel, could ever become an integrated
nation. Patrick Henry, frightened by the lan-
guage of the preamble, demanded "what right they
had to say. We the people of the United States.,
instead of We the States, in Order to form a more
perfect Union . . ." In replying to Madison,
Patrick Henry said "I see the awful irmnensity of
the dangers with which it is pregnant. I see it.
I feel it. ... Its adoption may involve the
misery of the other hemispheres" (note the plural
"hemispheres"). "The district, . . . 'this ten
miles square,' " said George Mason of Virginia,
"may set at defiance the laws of the surrounding
states . . . and may . . . become the sanctuary of
the blackest crimes." Benjamin Franklin could
say only "I consent. Sir, to this Constitution be-
cause I expect no better, and because I am not sure
that it is not the best." Writing in the hindsight
wisdom of our generation, Carl Van Doren ob-
served "Those who believed were more right than
those who doubted."*

' The Great Rehearsal, p. 251.

June ?4, 1954

909

And in our own day it is clear that many prob-
lems cannot be solved by any nation alone or even
by small groups of nations. It is by a significant
act of faith that the preamble of the charter of
the United Nations begins with the words, "We
the peoples of the United Nations" — faith in the
lessons of history, not least in tlie history of our
own United States. The U.N. Charter is based
not on an ideology such as dialectical materialism
but on the grim determination "to save succeeding
generations from the scom-ge of war," whose en-
gines of destruction have since become more awful
Sian their scientist designers intended or ex-
pected. From the viewpoint of political science I
suppose the U.N. structure is sound in its lk>xibil-
ity and in the inclusion of specialized agencies
created to deal witli critical problems in food and
agriculture, world health, meteorology, civil avia-
tion, labor, trade, telecomnuinications, and the like.
It seems relevant to recall that "Ideologies divide;
projects unite." The exploitability of tiie divisive-
ness of ideologies is now apparent. The cohesive
property of projects is increasingly manifest in
the operations of multinational staffs of the
United Nations and several of the specialized
agencies, as in increasing and improving food
production, health and sanitation programs, and
technical assistance in underdeveloped areas.

Figure 11. Hemisphere with the northern limits of the
United States at its edge

This hemisphere, which has the confers of Maine and
the State of Washington at its northern edge, is centered
near 38° S., 9S° W., in the South Pacific. It includes a
very narrow strip of Canada, all of Mexico, Central Amer-
ica and South America and Antarctica, and the more
densely populated part of Australia. The white-ocean
area on the Miller projection map at the right delineates
ttie same hemisphere.

If Haushofer and Hitler or the Japanese mili-
tary strategists ever made intelligent use of globes,
I have never been able to discover it. Wliat they
might have done or might have decided not to
attempt, if they had visualized geographical re-
lationships and situations more accurately, we can
only guess. But it is clear that misconceptions
of global relations, concerning which many people
speak very glibly — on the part of men in high
places either in this or almost any other large

country — can so distort, or in the past have so
distorted, the facts of another nation's capabilities
and intentions as to compromise peace or to start
or lose wars. This is only one of the reasons why
flat-map thinking about world relationships may
be treacherously deceptive and politically and
socially dangerous.

We cannot really comprehend many of our own
national problems except in their true relation-
ships to the whole. As a corollary it is the
writer's conviction that:

lie who would solve world i)rol)lems must
understand them ;

He who would understand world problems
must visualize them ; and

He who would visualize world problems
should study them on the spherical sur-
face of a globe.

Figure 12. The sum of all hemispheres containing all
of the United States

The sum of all hemispheres that include the entire
United States is indicated in reverse on this world map
on the Bricsemeister equal-area projection, by bringing
out the only area no part of which can be included in a
hemisphere that embraces all of the iS States and the
District of Columbia.

The outermost points of the United States are marked
by the Ictti rs A. li, C, D and E ; and the points antipodal
to them {as if oiie rcere to stick a hatpin five times through
the renter of the earth, coming out on the other side)
are lettered A', B', C, D', and E'. The dotted line
passing through A and B, across Canada and west of
Africu and crossing Australia, is the great circle that
outlines the hemisphere shown in figure 11. A series
of hemispheres, each including all of the United States,
can similarly be defined, hounded by the great circles
passing through BC, CD (not .fhoion), DE, and EA, which
are shotcn on the map in distinctive dashed lines, each
completely encircling the earth.

The only area which lies wholly outside all of these
U.S. hemispheres is the area in the south Indian Ocean
bounded by these curves, which are tangent to an inverted
outline mirror image of the United States (uhieh is
therefore but little larger than the United States itself),
and is therefore the only portion of the earth no part
of xchich can be included in a hemisphere embracing the
entire United States.

The continuous curve in a solid line is the line of the
centers of all hemispheres which barely include all of
the United States. Therefore any hemisphere centered
at a point inside that curve will include the United States
and somewhat more.

910

Department of State Bulletin

The obstacles to taking properly into account
the rapidly changing relations between people on
a worldwide scale are twofold: (1) political and
institutional and (2) physical and technical.

Political and Institutional Roadblocks

It is not only the United States but also most
of the other nations of the world that are experi-
encing global relations for the first time in their
history. And the political and institutional dif-
ficulties in the way of each nation's adapting it-
self to the new worldwide relationships are very
great. It is not people but the inadequacies of
political institutions (dating, of course, from pre-
atomic ages) that now constitute the chief road-
block to effective cooperation as world citizens, in
the opinion of Maj. Gen. G. Brock Chisholm, well-
known Canadian psychiatrist, who was until
recently Director-General of the World Health
Organization. He notes that there is need of flex-
ibility to permit quicker and freer decisions in
international affairs by heads of government,
without danger to democratic processes. It may
therefore be well to reexamine what ought to be
done in the national interest to adapt each nation's
institutions and procedures to the necessities of
efficient operation on a worldwide scale. What
national constitutions and legislative procedures,
in fact, have yet been conceived with a view to
assuring relatively prompt and responsible action
in collaboration with the govermnents and peoples
of other nations? Dr. Chisholm adds that there
is a need of expert international civil servants,
who should not sacrifice any of their national
allegiance, and that their training is more exacting
than that of domestic civil services.

Another serious roadblock to development of
normal world relationships is widespread fear.
It is no longer wild animals we fear but our fel-
low men — what they may do to us, what they think
we think. There is xenophobia — fear and dis-
trust of foreign peoples, ideas, and products.
Men governed lay fear become victims of a sort
of "phobiocracy" — rule by fear and by "phobio-
crats." Strangely, the fears among nations are
greatest in those that possess the weirdest pri-
mordial cosmic powers of destruction of one an-
other and of everything they cherish on earth.

It sometimes seems that vast new hmnan ener-
gies would be released if we were to nourish faith
in the integrity of the universe and its Creator, in
the sound principles enunciated by our forefathers
in each of our culture worlds, and in the ability
and desire of many of our fellow men of all lands
to rise above the inane excesses of nationalism that
sometimes seem to threaten to engulf us all.

Physical and Technical Obstacles

Many physical and technical difficulties must be
overcome before we can effectively and easily

visualize geographical relationships that can be
perceived realistically only on globes. ISIechani-
cally it is easy to project pinpoints of light repre-
senting stars upon a planetarium dome and thus
study the precession of the equinoxes, eclipses, and
movements of the planet "wanderers" among the
fixed stars. But it is much more difficult to project
continuous coasts, rivers, and geographical dis-
tributions and to superpose one set of geographical
data on another.

For example, there is thus far no practical
means of presenting a globe, or of projecting onto
a screen the appearance of a globe, with subject
matter on it, in a lecture room or, what seems to
be technically very different, on a television
screen.

But the time must come, I believe, when anyone
studying relationships, let us say, between two
points 5,000 or more miles apart, or involving an
area as large as one-tenth of the earth's surface,
will normally turn to a globe supplemented by
transparent measuring and comparing devices that
will make it easier to use a globe than a map.

The writer's most useful present unofficial re-
sponsibility, in his own estimation, is serving as
chairman of the National Research Council's
"Committee on Construction and Use of Precise
Globes and Spherical Maps," which is working on
a comprehensive program — thus far solely with
government funds, but we hope later also with
private funds, especially in the educational field.

Study of Techniques

The study of many categories of geographical
phenomena on the global surface presents striking
difficulties. Printing population distribution,
cost- and time-distance data, and many other sub-
jects on globe gores and mounting them on globes
seems, at the moment, prohibitive in cost. Pro-
jection from lantern slides onto spherical surfaces
may prove most economical but necessitates en-
tirely new techniques involving special lenses and
projection apparatus and perhaps projecting onto
concave surfaces.

Eesearch and development in problems of globe
production include determination of means of
making globes more accurate and uniform, of
transparent materials best adapted for use as
spherical overlays and means of imprinting geo-
graphical and geometrical patterns upon them,
and means of projecting global distributions onto
a dome analogous to a planetarium. The total
cost may be several hundred thousand dollars.

In any event, a whole generation in all parts
of the world should learn, soon, to think in truly
"global" terms. Large as the earth may seem
to us and complicated though its problems be,
we dare not exclude any people or any region

June 14, J 954

911

from our thinking. Perhaps if the earth were as
large as Jupiter (with about 120 times the sur-
face area of the earth) we could protest with some
reason that it was too much for luunan beings to
comprehend. But we need to introduce each gen-
eration at a relatively early age to concepts of the
world as a whole, to its "wholeness-properties,"
and to the fact that the whole is more than the
sum of all its parts, as the body is more than a
mere aggregation of organs and parts. A young
generation has already begun to think in terms
of subatomic particles (without having to unlearn
anything) and knows that matter is not simply
"solid, massy, hard, impenetrable, moveable parti-
cles," as defined by Sir Isaac Newton in 1707.
They easily become accustomed to models of atoms,
with nuclei comprising protons and neutrons and
witli electrons moving in planetary orbits. Wlien
children begin early to see and think in world
terms, realistically related to the roundness of the
earth, the solution of world problems will become
tractable.

Wliat a wonderful little celestial ball we live
on ! To millions of its human tenants it is "the
good earth," to little tracts of which they are
passionately attached. To its myriad indescrib-
able beauties they are keenly sensitive — to visible
beauties, only a small part of which have yet been
caught in color photography, to its audible
beauties, as in the tidal wave of birdsong that
sweeps around the earth daily ahead of tlie sun-
rise. Sweeping along in its orbit around the sun
at more than 18 miles per second (a velocity much
exceeding the swiftest modern projectiles), yet
stable enough for towering skyscrapers, it pro-
vides the stage upon which all natural and
human history has been and is being played.
With its flowers in crannied walls and light
received from infinitely distant galaxies and
island imiverses, it is tinged with mystery and
wonder enough to entrance generations for all
time to come. As we fit together all the bits of in-
formation we learn about atoms and stars and
about the age of the universe and of the earth,
we recall the Greek dictimi, "That which is first as
cause is last in discovery." And when we trace
our geographical data on globes and part-globes,
we shall probably realize that the world of human
relationships, in which we are so intimately in-
volved, is less simple than we sometimes assume
and that there are global patterns in human affairs
far greater than we yet perceive.

• Mr. Boggs, author of the above article, is Spe-
cial Adviser on Geography, Department of State.
His article is hosed on an invited paper which he
read hefore the 60th anniversary meeting of the
Association of American Geographers at Philadel-
phia, Pa., on April 12.

U.S., Turkey Discuss Matters
of Common Interest

TEXT OF JOINT COMMUNIQUE >

Press release 300 dated June 5

The Governments of the United States and
Turkey wish to express their mutual satisfac-
tion as a result of the visit of Prime Minister
Adnan Menderes to "Washington. It has pro-
vided a valuable opportunity for the Turkish
Prime Minister to discuss thoroughly with Pres-
ident Eisenhower, Secretary of State Dullas, Sec-
retary of Defense Wilson, Foa Director Stassen,
and other high ranking United States officials
matters of conunon interest to the two countries.

During his visit the Prime IMinister also met
with members of Congress who are active in com-
mittees concerned with foreign affairs. In such
meetings Mr. Menderes engaged in a frank ex-
change of views and opinions relative to the com-
mon goals and interests of our two countries.

Fiirther, the visit afforded an occasion for the
Prime Minister to place before the United States
Government a clear and forceful statement of
Turkish policy to act as a convinced and deter-
mined member of Nato, to develop closer political
and military ties with other friendly nations in
the free world, in and out of Nato, and to support
tlie mutual efforts of the United States and other
free nations to organize for world security.

The official visit has also provided another op-
portunity for the United States Government to
reaffirm its recognition of the fact that Turkey
has assumed a defense posture which includes a
modernized armed force and which places a heavy
strain upon the resources of its country and people,
and that substantial assistance from the United
States and from other free nations who are in a
position to render such assistance is necessary in
order to permit the attainment of our common
objectives for a collective defense. In this direc-
tion, the United States Government intends to con-
tinue to base its program of military assistance to
the Republic of Turkey toward meeting the re-
quirements of the NATO-approved Turkish force
goals. In order to enable Turkey to meet the re-
quirements of her armed forces under the above
program during the coming year, the United
States Government, subject to the action of Con-
gress and a review of commitments and priorities,
is disposed to increase its presently approved mil-
itary assistance program. The United States
Government is further prepared to accelerate de-
liveries of items in the present pipeline of rouglily
one-half billion dollare of military equipment

' Issued at the conclusion of the visit to Washington of
Adnan Menderes, Prime Minister of Turliey, June 1-5.

\

912

Department of Stale Bulletin

presently appropriated and progi'ammed for
Turkey.

In recognition of the fact that the support and
maintenance of a large defense force will place a
strain upon the Turkish economy which it cannot
presently bear without external assistance and in
further recognition of the fact that it is in our
common interest that Turkey be placed in a posi-
tion where it can support the needs of its military
establishment and its economy through its own
resources in the sliortest possible time, the United
States Executive Branch has requested the Con-
gress for funds which would permit the furnishing
of economic assistance to Turkey during the com-
ing fiscal year.

Although it is impossible for the United States
Government to make any commitments as to its
intentions with respect to the furnishing of mili-
tary or economic support assistance beyond Fiscal
Year 1956, it has been agreed with the Republic of
Turkey to continue the appraisal of Turkey's pos-
sible future needs and of the measures which may
have to be taken by the Government of Turkey
and the Government of the United States in the
attainment of their common objectives.

Ambassador Johnston's aim in the forthcoming
talks in the area will be to define points of essential
agreement and, insofar as possible, to narrow the
differences on technical aspects of the irrigation
and power project.

The Valley development program contemplates
the construction of an integrated system of engi-
neering works calculated to irrigate about 250,000
acres of land and develop more than 60,000 kw. of
electricity for the benefit of the peoples of the
countries having an interest in the waters of the
Jordan basin. Among these would be a substan-
tial number of Arab refugees from Palestine who
have been on international relief rolls for about
6 years.

Mr. Johnston will be accomj^anied by staff ad-
visers from the Department of State and the For-
eign Operations Administration.

High Commission for Germany
Establishes Patent Appeal Board

Eric Johnston To Resume Talks
on Jordan Valley Development

Press release 298 dated June 4

Ambassador Eric Johnston will leave for the
Near East on June 10 to resume conversations with
four Arab States and Israel regarding the develop-
ment of the Jordan River Valley.

Mr. Johnston will meet with representatives of
the Governments of Lebanon, Syria, Jordan, and
Egypt in Cairo on June 12. Following these dis-
cussions he will proceed to Tel Aviv for similar
meetings with representatives of the Government
of Israel.

Both Israel and the interested Arab States have
given Ambassador Johnston their comments on the
broad program for Jordan Valley development
proposed to them last November during Mr.
Johnston's first visit to the area as the personal
representative of President Eisenhower.

In addition, both the Arab States, acting as a
group, and Israel have now submitted detailed
engineering proposals of their own as to how the
valley's water resources can be developed for irri-
gation and power. These proposals, together with
those originally put forward by Ambassador
Johnston, will form the basis of the forthcoming
discussions at Cairo and Tel Aviv. Both plans
represent considered study of the idea by experts
over a period of some months and indicate a posi-
tive and constructive attitude toward the basic
conception of comprehensive Valley development.

June 14, 7954

.■;01910— 34 3

DEPARTMENT ANNOUNCEMENT

Press release 293 dated June 2

The Department of State has been informed
that, effective April 18, the Allied High Commis-
sion for Germany has established a Patent Ap-
peal Board under Allied High Commission Law
No. 8, which was promulgated in the Federal Re-
public of Germany in October 1949. This law
pertains to industrial, literary, and artistic prop-
erty rights of foreign nations and foreign na-
tionals which were impaired by the existence of
a state of war or as the result of German wartime
legislation.

The Patent Appeal Board has jurisdiction to
hear and determme appeals to the Allied occupa-
tion authorities under Law No. 8. The Board
consists of three members: the United States,
British, and French High Commissioners each
appoint one member. The United States member
is S. Houston Lay, a member of the United States
High Commission staff.

Appeals to the Board must be taken within a
period of 6 months of the date of the decision
complained of or within 6 months of the date of
the establishment of the Board, whichever is later.
Appeals are to be addressed to the General Secre-
tariat of the Allied High Commission at Bonn/
Mehlem, Germany.

The Board will function during the period
pending the coming into force of the contractual
agi'eements with the Federal Republic of Ger-
manv. At the time the contractual agreements be-

913

come effective, the Board will be superseded by
the Arbitral Commission on Property Rights and
Interests in Germany as provided in the Conven-
tion on the Settlement of Matters Arising Out of
the War and the Occupation.

TEXT OF REGULATION ESTABLISHING BOARD

The Council of the Allied High Commission issues the
following Regulation :

Article 1

In implementation of Law No. S (Amended) there is
hereby established a Patent Appeal Board, hereinafter
referred to as "the Board".

Article 2

The Board shall hear and determine appeals to the
Occupation Authorities under Law No. 8 (Amended).
The Board shall also act in such other matters as may
be delegated to it by the Allied High Commission.

Article 3

The seat of the Allied High Commission shall be that
of the Board.

Article 4

l.-The Board shall consist of three members who shall
have the qualifications required in their respective
countries for api)ointment to judicial office or equiv-
alent qualifications.

2.-Eaeh High Commissioner shall appoint one member.

Article 5

All decisions of the Board shall be in the form of judg-
ments or orders and shall be by majority vote. Judg-
ments and orders of the Board shall be binding on all
parties and shall not be subject to appeal.

Article 6

All questions of procedure shall be decided by the Board.

Article 7

The Allied General Secretariat shall act as the channel
of communication between the Board and the German
authorities or the parties.

Article 8

An appeal under Law No. 8 (Amended) may be taken
to the Board :

a) In the case of any decision rendered on or before
the date of the coming into force of this Regulation,
within six months of that date ;

b) in the case of any decision rendered after the date
of the coming into force of this Regulation, within
six months of the date of the decision.

Done at Bonn/Mehlem, on 3 April 1954.

By Order of the
Allied High Commission :
W. Neate
Secretary Oeneral

Persecution of Jews in Rumania

Press release 294 dated June 3

Deputy Under Secretary Murphy on June S re-
ceived a delegation from the American Jewish
Com,mittee for an exchange of views concerning
the recent persecution of Jews in Rumania. In-
cluded in the delegation were Jacob Blaustein,
Herman Gray, and Seymour Riihin. At the con-
clusion of the discussion Mr. Murphy made the
following statement:

In recent months the Rumanian Communist
regime has brought to trial and sentenced to long
prison terms scores of Rumanian Jews. Many of
these recently sentenced have been held in prison
without trial for several years, their only crime
being that the regime considers them undesirable.
The fate of the victims of this widespread perse-
cution is cause for deep concern on the part of the
Department of State as well as the American
Jewish Committee.

The conduct of the Rumanian Government in
this instance is but one more example of its callous
disregard for human rights and fundamental
freedoms. In order to instill fear in the hearts
of the 250,000 Jews in Rumania that Government
has found it necessary to sentence leaders of the
Jewish community so that they might be held as
hostages. Such conduct is not only in violation
of the provisions of the Treaty of Peace with
Rumania but also ignores the dictates of justice
and humanity.

I am deeply moved by the tragic plight of these
unfortunate Jewish leaders and sympathize with I
the feelings expressed by members of the dele- [
gation from the American Jewish Committee.

New High Commissioner for
Federation of Malaya

Press release 303 dated June B

Secretary Dulles on June 5 issued the following]
statement on the occasion of the inauguration of\
Sir Donald M cGillivray as High Commissioner
for the Federation of Malaya to succeed Generall
Sir Gerald Templer:

In the past 2 years, under the leadership of
General Sir Gerald Templer, marked progress j
has been made in Malaya to halt Communist ter-
rorism there and to build up a self-governing na-
tion. It is with a sense of gratification that the
peoples of the free world have watched the ad- ;
vance toward these goals.

In Malaya, as elsewhere, people have increas-
ingly recognized communism for what it is — an
attempt by force and subtlety to exploit their

914

Department of State Bulletin

aspirations and subjugate them to ruthless tyr-
anny. Through the cooperation of the peoples
of Malaya with the civil and military authorities,
substantial progress has been made in countering
this Communist threat. Indicative of the improv-
ing situation is the fact that almost one-fourth of
the people of the Federation now live in areas
where the elimination of Communist terrorism
has permitted the resumption of normal living.
With the steady improvement in the military sit-
uation, Malaya has taken substantial steps toward
responsible self-government.

As the leadership of the Federation of Malaya
passes from General Templer to the new High
Commissioner, Sir Donald ^VIcGillivray, the
United States welcomes Sir Donald's determina-
tion to continue pi-essing toward those goals to
which the people of Malaya aspire. We will con-

tinue to follow with the greatest interest further
progress toward the creation of a truly united
and self-governing nation free from Communist
terrorism.

By the suppression of Communist attempts to
terrorize the people, Malaya will continue to play
an important part in halting Communist aggres-
sion against the free world. By sound progress
toward self-government based on cooperation
among its racial groups, Malaya will attain a new
maturity and strength over the years that will
make it a valued member of the community of
nations.

The American people, confident that continued
progress will be made in the future under the
leadership of the new High Commissioner, join
the people of Malaya in looking forward to a
realization of their goals.

The Korean People's Right to Unity and Independence

STATEMENT BY UNDER SECRETARY SMITH'

During all these sessions on Korea the U.S. del-
egation has listened, at times with sincere ad-
miration and at other times with profound mis-
givings, while on the one hand representatives of
the free nations of Asia, Africa, Europe, and
America have called for a constructive effort to
unite this unhappy country, and on the other hand
our Communist colleagues have denounced and
distorted every ideal to which we subscribe and
every democratic principle which we cherish.

The date of May 11, 1954, may stand out in the
history of our times as an occasion of grave revela-
tion. On that day, in this room, the Soviet Union
through its delegate denounced the United Nations
and characterized it as a belligerent institution,
unworthy of confidence. That the representa-
tives of the Chinese and North Korean Com-
munist regimes reiterated this denunciation is
regrettable but not surprising. Both have been
declared aggressors by the United Nations.

Many words, good and bad, have been spoken
here since this Conference met, but none have been
clearer in intent or more serious in implication
than the words of the delegate of the Soviet Union
on the 11th of this month at the ninth plenary
session on Korea. All of us who heard them re-

^ Made at the twelfth plenary session of the Geneva
Conference on May 28.

member, but I repeat them so we may focus on
their meaning. He spoke as follows :

What conclusions can be drawn with regard to the
United Xations (Organization from the facts pertaining
to the war in Korea? The conclusions are clear. As a
result of a number of illegitimate actions on the part
of the Security Council and the General Assembly, the
United Nations Organization became a belligerent in
Korea. In fact, the United Nations flag was used there
only to cover up American aggression.

In the eyes of the peoples of the whole world, this
turning of the United Nations Organization into a belliger-
ent greatly diminished the prestige -if this international
organization. Under the circumstances, the United Na-
tions Organization has deprived itself of the capacity to
act as an impartial international body and can no longer
carry out objective functions in the settlement of the
Korean problem.

By the word "American" the Soviet delegate in-
tended to designate the United States. It gives
me satisfaction that there are two other nations
from the Americas represented here — Canada and
Colombia. They also sent their sons to Korea to
defend the ideal that the United Nations flag is
not a scrap of cloth. What the 16 nations here
represented did in Korea, acting together under
that flag, in accordance with resolutions of the
United Nations, was done because of their com-
mon belief in deep-rooted moral principles for
which men are willing to die. The United States
is proud of its role in Korea and of its associates
there. It believes that all people who long for a
free and peaceful world take pride in the role of
the United Nations in Korea. The blood of the

June 14, 1954

915

young men of 16 nations was shed in Korea for
the most noble of causes — to protect tlie weak from
the strong and the predatory. Only if free men
continue to be willing to band together for this
high purpose can the peace in the free world be
assured.

Soviet Rejection of Collective Security

Wliat the Soviet Union, through its delegate, is
telling the world from Geneva is that it rejects
the principle of collective security, that it intends
to do as it pleases without regard to truth or jus-
tice or peace — even without regard to the funda-
mental rights of humanity. It is as simple as
that, and it should cause the majority of us to
think and to draw closer together.

It is a strange phenomenon that we who came
here to unite a divided and war-torn nation find
ourselves defending the international system of
security to which every one of the governments of
the world, if it were truly representative of the
wishes of its people, would be eager to contribute
all possible moral and material support.

This system was established in 1945 at San
Francisco. It is embodied in the United Nations
Charter, to which the representative of the Soviet
Union at this Conference affixed his own signa-
ture. That charter was, and still is, regarded by
the vast majority of us as the world's best hope
for peace.

One of the basic pledges in the United Nations
Charter is the pledge to resist aggression. A
specific case arose in June 1950, when armies from
North Korea invaded the territory of the Republic
of Korea, which had been formally recognized by
the United Nations as the only legal government in
Korea. The Security Council of the United Na-
tions was promptly called into session. It called
upon its members to act at once to repel this
aggression.

The representative of the Soviet Union in the
Security Council absented himself on the occasions
of these historic decisions. The Soviet delegate
has sought here, and not for the first time, to
establish the theory that one absent member is
more potent under law than ten who are present
and who vote to take a united action.

If one absent member, through the mere circum-
stance of his absence, can render the operation of
the ju-inciple of collective security null and void,
or "illegal and shameful," to use the words of our
Communist colleagues, the aggressor in Korea
would have swept the entire country unimpeded —
and all because the representative of the Soviet
Union in the Security Council of the United Na-
tions had gone for a walk. I am not attempting to
be sarcastic. I am simply stating a fact.

We are presented here with the paradox that
the Soviet Union, while denouncing the acts of
the United Nations, insists nevertheless on exer-
cising all the rights and privileges of a member

and, indeed, goes further by continuously using
its veto to keep sovereign and independent and
law-abiding nations from being admitted to mem-
bership in the United Nations. More than that,
the Soviet Union has been insisting that the gov-
ernment in Peiping, so far lawless, shall be seated
in the United Nations.

This brings to mind the circumstances that sur-
round the presence here of the Chinese Commu-
nist representative. We cannot forget that in the
autumn of 1950, when the armed forces of the
United Nations had successfully repelled the ag-
gressor armies of the North Korean faction, there
came another aggression. At first it was insisted
at Peiping that the well-organized and well-
equipped armies from the mainland of China were
merely "Chinese volunteers" and had no connec-
tion with the Peiping government.

Then the world was told after a few months
that the government at Peiping acknowledged re-
sponsibility for the orders to the armies of Chinese
soldiers in Korea. Today at this Conference in
Geneva that same government, through its repre-
sentative here, tells us that the United Nations has
no right to see to it that the Chinese armies now
occupying North Korea will not break the peace
again. We are told also by the Soviet Govern-
ment that the United Nations must not be per-
mitted to supervise the elections proposed for all
Korea. Why does the Soviet Government object
so vigorously to the conduct of free elections under
United Nations observation, and why did it object
in May 1948 to the supervision by a United Na-
tions commission of the elex-tions in North Korea?
Is the Soviet Government afraid of tlie votes of
the people of Korea in a free, uncoerced election?

Now let us look at the record of the members
of the United Nations who, faithful to the charter,
sent their armed forces to Korea to repel aggres-
sion. They sent their troops thousands of miles
away from home and they made sacrifices of al-
most 200,000 killed and wounded in order to sup-
port the principle of collective security as against
aggression — the great objective of the United
Nations Charter. They did this only in the inter-
est of achieving peace against aggression. No
more dramatic demonstration has ever been given
to the world of the collective action of sovereign
states in repelling aggression.

Yet after all this, we have been exposed to a
brazen effort to distort the facts, a devious, if
all too obvious, attempt to pervert an inspiring
moral principle. But I will not dwell further
on this point. The United States did not come
to Geneva to lend itself to the destruction of the
United Nations.

Here at Geneva we have been confronted by a
new challenge to our wisdom, vision, and generos-
ity. We have the opportunity to put aside sus-
picions and antagonisms in a united effort to allow
the Korean people at long last to work out their
national destiny. We have the opportunity to in-

916

Department of State Bulletin

spire the whole world with a new respect for the
opinions of mankind and a renewed confidence in
our only existing institution of international order
and justice — the United Nations.

The majority of us came here in the hope that
the question of Korean independence and unifica-
tion would receive the careful, sympathetic atten-
tion at Geneva that it deserves. Sixteen of our
delegations believe sincerely that the people of
Korea, from the Yalu to the southern shores, are
entitled to our most earnest eiforts to give them
independence and unity. They deserve better
than to be made the subject of a propaganda
campaign. Yet I grieve to say that this is what
we have been witnessing.

If we did not understand the insidious strategy
of communism, we would be surprised to find three
peoples with such long and infinitely varied his-
tories and cultures as North Korea, Russia, and
Communist China suddenly appearing so identical
on one side of this Conference. Their words and
their actions are interchangeable.

And what have they put forward on Korea?
After months of delay, this is what they tell us :

Rejection of U.N. Authority

They deny that the United Nations has any
authority or moral force to deal with the problem
of unification of Korea. They repudiate as
shameful and illegal the United Nations resolu-
tions on Korea. They reject any United Nations
supervision in Korea. They reject overwhelming
world opinion which looks to the United Nations
as the one fundamental instrument for maintain-
ing peace and security.

Thus they erect another Iron Curtain at Geneva
designed to shut out any constructive effort by
this Conference toward the attainment of its goals.

Then our Communist colleagues ask us to ac-
cept proposals for Korea's unification which would
provide for elections "first on paper, last in prac-
tice, free in name but rigged in fact," as Mr. Eden
put it so well. More than this, they have con-
cocted an elaborate device which, when analyzed,
is nothing more than the Soviet veto system, the
paralytic effect of which the world has witnessed
on so many previous occasions.

This formula would permit the imposed dic-
tatorship of a minority of the Korean people still
living in North Korea to obstruct forever the
freely elected representatives of the great majoritj'
of the people in Korea. By this formula a regime
which is shrouded in darkness would shackle a
government whose legitimacy and representative
character have been repeatedly recognized by the
United Nations; and it would not even give the
captive minority of Koreans a chance to speak for
themselves in genuinely free elections open to the
■world to see.

As if all that were not sufficient, the Communists
would have us agree in advance to tie our hands

and close our eyes while a divided Korea, quaran-
tined from the rest of the world and isolated from
the United Nations, is absorbed into the Commu-
nist orbit. A few days ago Secretary Dulles made
this statement to the people of the United States —

More than 140,000 Americans were killed and wounded
under the United Nations command to keep Korea from
being overrun by armed invasion. I promise you that we
shall not surrender at . . . Geneva the freedom for which
so many fought and died."

I must repeat, as the Netherlands Foreign Min-
ister already has so convincingly pointed out, that
ten members of the Security Council, in November
1950, affirmed the policy of the United Nations to
hold the Chinese frontier with Korea inviolate,
and fully to protect legitimate Chinese and Korean
interests in the frontier zone. This would have
produced a genuinely peaceful and united Korea
if the Soviet Union had not vetoed the joint reso-
lution, and if shortly thereafter the Chinese Com-
munists had not invaded Korea in force across
that frontier.

Despite all this, there is basis on which we can
still build a new life for all the people of Korea.
It is not too late to fulfill our objectives of estab-
lishing, by peaceful means, a united and independ-
ent Korea. All we need is the courage and will to
accept, honestly, the reality of the principles that
have been expressed in our meetings.

There must be a sincere effort toward modera-
tion and a search for an accord, as so many rep-
resentatives have urged.

There must be clearly reaffirmed our respect for
the authority and moral force of the United Na-
tions. This Conference can, if it so wills, declare
an act of faith in the United Nations. The United
States associates itself unreservedly with the sup-
port which the large majority of my colleagues
here have expressed for the United Nations. It
is the only instrument left to us for ridding the
world of the scourge of war. It is a moral force
for peace. It is the one remaining instrumental-
ity for maintaining collective security. It will be
a tragic day for all the people of the world if,
as has been threatened here, the United Nations
is discredited and condemned, if its resolutions are
spurned as scraps of paper, and if the peoples of
the world are cast adrift without this anchor in
which they have placed their trust.

There must be recognition of the need to rely on
the cooperation of the United Nations in helping
the Korean people themselves to bridge the wide
gulf which years of separation and war have
created. This cooperation will not impair in any
way the inherent right of the Korean people to
make the decisions that affect their own destiny.

No lasting peace or security can come to the
people of Korea unless their right to unity and
independence is exercised in an atmosphere of

' Bulletin of May 17, 1954, p. 740.

June 14, 1954

917

genuine freedom. They must not be coerced as
they move through the process of establishing a
united and independent nation.

Support for ROK Proposals

In the light of these sincere beliefs, the U.S.
delegation has studied tlie proposals which the
delegate of the Republic of Korea presented to
us last Saturday. We find them clear, moderate,
and reasonable. They are within the framework
of the basic principles which tlie vast majority of
us here have publicly endorsed. It seems to the
U.S. delegation that these proposals represent an
impoi'tant and significant act of faith in the
United Nations and in genuinely free elections.
These are the proposals of a nation which conducts
its elections under the observation of a United
Nations commission, which has fought with enor-
mous sacrifice and great bravery against aggres-
sion, and wliich has demonstrated its dedication
to the principles of liberty and freedom.

The U.S. delegation supports the proposals of
the Republic of Korea and recommends their
acceptance.

TEXT OF SOUTH KOREAN PROPOSALS OF MAY 22

1. With a view to establishing a united, inde-
pendent and democratic Korea, free elections shall
be carried out under the United Nations' super-
vision in accordance with the previous United
Nations resolutions there-anent.

2. The free elections shall be held in North
Korea, which has not been accessible to such elec-
tions, and in South Korea also in accordance with
the constitutional processes of the Republic of
Korea.

3. The elections shall be held within six months
from the adoption of this proposal.

4. Before, during and after the elections, the
United Nations personnel connected with the
supervision of the elections shall have full free-
doms of movement, speech, etc., to observe and
help create conditions of a free atmosphere
throughout the entire area for election. Local
authorities shall give them all possible facilities.

5. Before, during and after the elections, the
candidates, their campaigners and their families
shall enjoy full freedoms of movement, speech,
etc., and other human rights such as are recognized
and protected in democratic countries.

6. The elections shall be conducted on the basis
of secret ballot and universal adult suffrage.

7. Representation in the all-Korea legislature
shall be in direct proportion to the population of
the entire Korea.

8. With a view to apportioning the numbers of
representatives in exact propoi'tion to populations
in the election areas, census shall be taken under
tlie United Nations' supervision.

9. The all-Korea legislature shall be convened
in Seoul immediately after the elections.

10. The following questions, among others, shall
be left to the enactments of the all-Korea legis-
lature :

(a) Whether the President of unified Korea
should be newly elected or not;

(b) Concerning amendments of the existing
Constitution of the Republic of Korea;

(c) Concerning the disbandment of military
units.

11. The existing Constitution of the Republic
of Korea sliall remain effective except as it may be
amended by the all-Korea legislature.

12. The Chinese Communist troops shall com-
plete their withdrawal from Korea one month in
advance of the election date.

13. The phased withdrawal of the United Na-
tions forces from Korea may start before the elec-
tions, but must not be completed before effective
control over entire Korea be achieved by the uni-
fied government of Korea and certified by the
United Nations.

14. The integrity and independence of the uni-
fied, independent and democratic Korea shall be
guaranteed by the United Nations.

Mr. Yoshida's Trip Postponed

Press release 302 dated June 5

Prime Minister Yoshida of Japan has indefi-
nitely postponed plans for a world trip, includ-
ing a visit to the United States. An invitation to
visit the United States was extended to the Prime
Minister through Secretary Dulles last year and
Mr. Yoshida liad been tentatively scheduled to
arrive in Washington on June 7.

The United States Government regrets that the
Prime Minister's visit has been postponed but it
is hoped tliat he will be able to come to this country
at some later time. Such a visit would provide an
opportunity to discuss matters of mutual interest
to the United States and Japan and would con-
tribute to the steadily increasing bonds of friend-
ship between the people of the two coimtries.

918

Deparfment of State Bulletin

Foreign Trade and Military Policy

hy H. Strwoe Hensel

Assistant Secretary of Defense for International Secwrity Affairs '

Military considerations must be given more and
more weight in the determination of our economic
and foreign-trade policies. The external dangers
and threats faced by this Nation are real. They
will not go away when we close our eyes.

We can no longer retire behind two wide oceans
and concentrate our attentions on our own re-
sources and domestic capabilities. We are a part —
although a very large part — of a turbulent globe.
Our enemies have marshaled all their abilities —
economic, military, political, and propaganda — in
a cold-blooded effort to destroy us.

Since we are determined to survive, our "Num-
ber 1" resolution must be to use all our abilities in
our own defense. And our foreign-trade policy
can be turned to real account in this struggle.

The effect of military considerations on national
trade policies is not a new idea. Our economists
for many years have been willing to limit the rule
of "maximum competition in the interests of
greater over-all efficiency" to domestic trade. Free
competition in international trade was considered
idealistic but impractical. None of us were will-
ing to risk militarily important industries for the
sake of an economic theory. We were all willing
to pay that hidden "sales tax" called a "protective
tariff" in order to have our essential productive
capacities under our own flag. As a result we have
a solid and broad industrial base for our military
strength. It is one of our major assets.

The principle of shaping trade policies to fit
military needs is still sound. The military con-
siderations have, however, changed. Some of the
changes have escaped notice except in military
circles. For instance, as Canada developed into
an industrial nation, it was realized that Canadian
production is almost as available to us as produc-
tion in the continental United States. In fact
production in Canada is perhaps more accessible
than production under the American flag in Hawaii

' Excerpts from an address made before the American
Law Institute, Wasiiington, D. C, on May 21 (released
to tlie press by the Department of Defense).

or Alaska. Kaw materials in Mexico and the Car-
ibbean countries are practically a part of our do-
mestic arsenal. Geographically they are nearby,
and the lines of communication are relatively easy
to keep open. We therefore have no military pur-
pose in discouraging industrial growth in such
countries. We have, on the contrary, sound mili-
tary reasons to encourage such growth, and our
trade policies should be adapted to achieve that
end.

In World War II we made a more painful dis-
covery about war and foreign trade. We learned
that many of our domestic resources were insuffi-
cient for war requirements. The seemingly end-
less resources of the Mesabi range began to shrink.
The demands upon our petroleum resources loomed
larger and larger in proportion to our supply. We
learned that many necessary products such as man-
ganese, tungsten, tin, chrome, and even bauxite
never existed in sufficient quantities within our
own borders. We, the wealthiest nation, took a
lesson from the squirrels and started a stockpile
of strategic materials. We are still maintaining
such a stockpile, and we are still aware of our de-
pendence on outside sources for war materials.

So much for the lessons we have already learned.
Unfortunately, the world never stands still. There
are further modifications to be made in our tradi-
tional trade policies which are being dictated by
military considerations.

Our Need for Allies

Today for militai-y reasons, if for none other,
we are moving toward freer international trade.
That sounds like a contradiction, but it is not. The
basic principle is the same. A new military need
has come to the forefront. We need allies. The
United States, in spite of our tremendous strength,
cannot go it alone. This is no confession of weak-
ness. It is a recognition of reality. The old
delicate balances among many powers are gone.
Thei'e are two camps — the free world and the
Communists. In between these is a void. Our free
world needs the collective and firmly united
strength of all its members.

June ?4, 7954

919

Furthermore, our free-world allies must be tied
as closely as possible to us. The stronger our
allies are economically and militarily the better.
But of equal importance is that, weak or strong,
those allies must be tied securely to us. And
mutual trade on a two-way basis is the only effec-
tive way to attract and hold those allies. There
is nothing charitable in this approach. It is based
on cold-blooded self-interest.

We will never seize allies through the Russian
method of military domination. The ancient
method of ruling-family intermarriages is no
longer fashionable or feasible. Gifts and loans are
effective only as long as the money is being ad-
vanced. Once the time of repayment comes, di-
vergent rather than mutual interests are created.
Economic aid and military aid, whether in the
form of grants or loans, were necessary to get our
battered allies back on their feet. Beyond that
they are not so effective. Furthermore, rich as
we are, we cannot afford such lavishness for an
indefinite period. We are not at the end of our
ability in that respect. We are, however, defi-
nitely aware that there must be an end.

There is no closer bond among nations than
the interrelation of economic interests. . . . No
country is so blind that its foreign policy becomes
insensitive to the trading interests of its people.
Wars may start over conflicting economic inter-
ests, but alliances are cemented by mutual eco-
nomic interests. The importance of mutual trade
in cementing alliances should be obvious. Even
our Communist enemies have harnessed their
trade policies to their military and foreign policies.
It is a miracle that here in the United States the
close connection between trade and allied military
strength has been so often missed.

There is only one caveat in this move toward
freer mutual trade between us and our allies. We
must not pursue mutual trade to the point that
we injure our strong and vigorous domestic econ-
omy. The productive capacity of the United
States is clearly one of the main pillars — if not the
foundation — upon which the military and eco-
nomic strength of the free world now rests and
will rest for many years to come. That founda-
tion cannot be shattered or seriously weakened.
Consequently the only danger spot to watch is not
to let a freer trade policy injure the basic economy
and defense structures of the United States. That
result will hurt us and our allies alike.

Trade and a Strong Domestic Economy

It is clearly possible to achieve both our objec-
tives, mutual trade with our allies and an overall
strong domestic economy. Our economy is not so
frail that it will injure easily. We will not be
able to please all of our allies all of the time. We
will not be able to satisfy all of our industrialists
all of the time. Increased international commerce
will inconvenience — and perhaps hurt — some of

920

our industries. It will stimulate others. Our
aim must be to maintain overall industrial
strength rather than the status quo of each existing
industry irrespective of its contribution to our
military strength.

It is foolish to argue that the modification of
existing restrictions on foreign trade can be accom-
plished without any domestic dislocations. Some
industries owe their entire existence to trade bar-
riers. To the extent that they are militarily essen-
tial, some restrictions will have to be maintained.
To the extent that they are not essential, our atti-
tude toward the trade barriers should be judged
solely by the effect on our allies.

Obviously, substantial quantities of electrical
equipment or cutlery cannot be imported without
some market upset on the part of the domestic
manufacturers of such electrical equipment or
cutlery. Some individual firms, industries, and
perhaps communities will find their paths more
difficult with vigorous competition from abroad.
Some upsets will be temporary, and other changes
in our industrial pattern may well be more per-
manent. To refuse to recognize such probaliili-
ties would be foolish. Yet calamity does not lie
ahead. The balance between our allies and basic
industrial strength at home can be preserved. I
believe that, if we face reality, we can, both na-
tionally and privately, alleviate and overcome the
effects of freer international trade.

Our industries are not without experience in
meeting derangements. The advances in engineer-
ing, electrical, and mechanical developments have
produced minor industrial revolutions in which
whole industries have disappeared. Yet our over-
all economy has grown stronger. Our military
potential has increased. The machine with its
labor-expanding capabilities was fought for many
years solely because of its dislocating effect on
groups of workers and individual skills. Shifts
in fuels — the simple changeover of a furnace from
coal to oil — have produced industrial upsets of
deep penetration. We cannot stop such changes.
And we would not stop them if we could. We
have surmounted those difficulties, and with
patience and intelligence we can do so again.

It is hard to believe that the effects of freer
international trade will be more revolutionary
than the advent of the automobile. No national
legislature rushed with sales taxes or tariffs to the
protection of the bicycle or wagon industry. The
transition from a protected economy to a freer
economy, particularly when nationally assisted,
should be simpler.

There is also a compensating factor in the ex-
pansion of international commerce. Other nations
will become economically stronger. Such in-
creased economic strength will bring higher stand-
ards of living in such foreign countries. The
mass markets available to us and our allies will
expand. New markets will open to our existing
industries. New industries may be stimulated into
being. If this trade pattern is followed through-

Department of State Bulletin

out the world, our economy should have a wider
field for its efforts than ever before. Global
markets might even replace domestic markets. In
any event, the opportunities for overall expansion
rather than contraction will be within the realms
of probability and possibility.

I am, therefore, certain that our basic objec-
tives— the firm attachment of allies through
mutual trade and a strong domestic economy — are
not inconsistent. I am equally confident that, un-
less the individual problems are tested by such
guide-lines, we will end up in a hodgepodge of
comjjromises and contradictions. What is worse,
we will make bad mistakes.

Tariff levels, currency convertibility, guaran-

ties of foreign investments, "Buy American" re-
strictions, and that mysterious phenomenon called
the "dollar gap" cannot be dealt with separately
or without relation to some basic principles. Even
the experts on those subjects are helpless unless
they know the end results we wish to attain. I do
not know how much, when, or in respect of what
items the tariff rates should be modified. But I
am confident that very little expert difficulty will
be experienced in determining the appropriate
tariff schedules if we test all solutions by the basic
principles outlined. Therefore, if we identify and
establish the fundamentals and insist on adherence
to them, trade policy can be bent to augment mili-
tary strength in the present and the future.

Maintaining Free World Unity

Statement hy Secretary Dulles ^

I appreciate the privilege of appearing before
you today in support of the Mutual Security Pro-
gram for fiscal year 1955. This program is a
major instrument of our U. S. foreigii policy.
Other witnesses will discuss with you its details.
I shall deal primarily with the relation of this
program to our overall foreign policies.

The program responds to our recognition of the
following basic facts :

1. The Soviet and Chinese Communist rulers
are continuing to seek world domination. Noth-
ing has happened to indicate any change in this
purpose. As a part of their expansionist pro-
gram, they continue to maintain vast military
establishments, huge propaganda machines, and
the control of powerful subversive elements in the
free nations.

2. The danger to our national security is neither
a short-term danger nor is it exclusively military.
For tills reason, we must strive to hold our security
commitments to levels which are compatible with
our economic and social health. The same is true
of our allies.

3. The United States cannot gain security in
isolation, but only through a system of collective
defense. Our survival depends upon keeping the

' Made before the Senate Foreign Relations Committee
on June 4 (press release 297).

spiritual and material resources of other free na-
tions out of Soviet hands, and upon maximizing
the contribution which other free nations can make
to the struggle against communism.

4. A number of free-world countries cannot
maintain the military strength and the economic
stability which they must have in their own in-
terest— and which we want them to have in oui"s —
unless we help them. Our help must be devised
to meet their need — militarily in some countries,
economic in others.

These are continuing principles. They under-
lie the Mutual Security Program and the request
for authority to continue it for the coming year.
Let me now discuss briefly some of the ma] or de-
velopments of the past year in the principal areas
of the world and the major factors affecting the
program in these areas in the coming year.

Europe

As you know, one of our most significant and
successful ventures in collective security is the
14-nation Atlantic alliance. Nato not only has
created considerable local defensive power, but
also provides the facilities needed to implement
our broad deterrent policies. Under Nato, we
and our allies have developed an extensive system
of bases and facilities which are shared in com-

June 14, 1954

921

mon, extending from Canada through the North
Atlantic into Europe and the borders of Asia.
Also, our Nato allies todaj' have ground forces
larger in size than our own. The six divisions of
American troojjs which we have contributed to
Nato are now standing beside approximately 9U
active and reserve divisions from allied countries.
We propose to pi'ogram additional military equip-
ment to strengtlien forces being created by our
allies.

While these forces are significant, they repre-
sent only the nucleus of our combined defensive
and deterrent strength. They must be supple-
mented by all the other means needed to deter
attack. As one means to this end, wo propose in
this program that the United States contribute
to this objective by assisting the United Kingdom
to develop a more modern and more powerful air
force to augment Nato's limited ground forces.

The Nato system is an essential element in
American policy. It represents both the keystone
of European defense and the political framework
for harmonizing allied policies and programs.
The Nato Ministerial Council, which meets reg-
ularly twice a year, assures indispensable consul-
tation on an authoritative basis.

I am pleased to say that the amount of new
authorization required for our contribution to
Nato's defensive strength next year will be much
less than in the past.

Consideration of Nato progress requires con-
sideration of the present status of the European
Defense Community. Nato needs a German con-
tribution in order to develop a forward strategy.
It also needs a Franco-German unity which will
end for all time the danger of friction and strife
between these two nations. The French pi-oposed
to gain these ends by uniting six continental na-
tions, including France and Germany, to create
a new community whose armed forces, drawn
from each member nation, would, in Europe, re-
place national forces.

It has now been more than 2 years since the
treaty to create the Edc was signed. Since I
visited Europe last year to stress the importance
which this Government attaches to Edc, consider-
able progress has been made. Four of the six
signatory nations have now ratified the treaty.
Today, only France and Italy have not taken
parliamentary action.

These delays contribute a negative factor from
the standpoint of the free world. Not only have
they delayed a German military contribution to
Western defense, but they have also prevented
West Germany from joining the family of sov-
ereign nations. This is because the treaties to
restore sovereignty to the West German Republic
are by their terms contingent on Edc's coming into
force. There is, of course, a duly elected West
German Government, but it is not yet a sovereign
government.

922

It is obvious that the pi-esent situation cannot
continue much longer. There exists a conjunction
of cii'cumstances which will not indefinitely per-
sist and which when changed might make it im-
possible to achieve the vital goal of binding
together those European nations whose past dif-
ferences have led to wars of evergrowing inten-
sity. AVe have made it clear to our European
allies that failure to approve and implement Edc
would necessitate a thorough reexamination of
American policies. It cannot now be .said what
the results of that reexamination would be. It
can, however, safely be predicted that it would
necessitate some basic changes and that certain
attitudes and policies on our part, which seem to
be taken for granted by certain of our allies,
would have to be reviewed.

In this connection, the Coiigress last year ear-
marked a substantial portion of the Mutual
Security funds for Edc. I understand that the
Congress may wish to consider similar action this
year. Since our present policies are based on the
a.ssumption that Edc will become a reality, there
can be no reasonable objection to such action. The
recent vote of the Socialist Congress in France is
quite encouraging and could give additional force
to our assumption that Edc will succeed. At the
same time, I recommend to the Congi-ess that the
Mutual Security legislation be modified in such a
way as to permit those countries which have al-
ready approved the Edc treaty to continue their
military buildup pending final action by the other
signatory governments.

During the past year our collective security
.system has been strengthened by a base agreement
with Spain.^ This arrangement will enlarge the
facilities available to the United States air and
naval craft in the western Mediterranean area.
The successful conclusion of these negotiations
represents a signifiicant addition to our overall
security.

The increase in the economic well-being of our
European allies during the current year is an en-
couraging development. Generally speaking,
their living standards have risen, their currencies
are stronger, and the people feel a greater confi-
dence in their future. This program is unques-
tionably built on the foundation of our past pro-
grams of economic assistance. It is also due in
considerable measure to the adoption, this year, of
the "long haul" concept for Nato.

By the use of methods of greater selectivity and
by increased dependence upon new strategy, it will
be possible to maintain a steady increase of defen-
sive capability without military costs which our
European allies could not carry without gi-eat
economic help from the United States.

'■ For text, see Bulletin of Oct. 5, 1953, p. 4.36.

Department of State Bulletin

We have sought and have almost accomplished
tlie elimination of economic aid in Europe as pure
budgetary support. We feel it is still important
to us in our own interest to provide such help under
a few exceptional circumstances — particularly
where it is necessary to maintain military estab-
lislmients which directly benefit us and which
cannot be maintained to the degree deemed desir-
able by our military advisers without some sup-
port from the United States.

Tlie case of Turkey illustrates this point.
Turkey maintains about 20 divisions of splendid
fighting quality at a strategic location. The
Turkish economy cannot support this force with-
out some assistance and, therefore, the Mutual
Security Program includes such help. We believe
that the money spent in this way brings a greater
return to the United States in terms of its own
security than if it were spent in some other way or
if it were not spent at all.

Middle East and South Asia

In the Middle East the action of Turkey and
Pakistan in concluding a treaty of friendship and
cooperation jirovides an ini]ioriant element of
encouragement. It is good that the concept of
mutual security has taken hold in this crucial
area. This is an area of great human, economic,
and strategic value. It has been weakened by
divisions. The fact that Pakistan and our Nato
ally, Turkey, now plan to cooperate for security
gives both of these countries a new source of
strength. Also, they have set an example that
others may follow.

There ai'e among our friends in the Middle East
and South Asia nations for which we propose
economic aid not related to direct military bene-
fits. The people of these nations are engaged in
a struggle in which the primary need is not weap-
ons of war but the tools of peace. The largest
authorization sought in this category is for de-
velopment aid for India. On some issues India's
foreign policy differs from our own. But India's
principles — the principles of democracy — are bas-
ically those which we cherish. The people and
leaders of India are dedicated to the democratic
form of government. Their constitution is
modeled in part on our own with emphasis on
the Bill of Rights. India is making a gi-eat and
courageous effort to achieve the economic progress
necessary to foster democratic institutions of its
new independence.

This efi'ort is in striking contrast to the develop-
ments in the nearby area of Communist Chinese
dictatoi-ship. There is no doubt in my mind that
the people of Asia will be much influenced by their
comparison of the economic progress made under
the democratic system of India and the Com-
munist dictatorship system in China. We believe
that India's own great effort should be suj)ported
so that its plan for economic development shall

succeed. We should remember that among free
nations there is room for diversity of views. We
should not let our wish to help the people of India
develop their nation be swayed by any temporally
differences, however important. It is essential
that we continue to help if for no other reason
than to serve our enlightened self-interest. It
M'ould be a tragic day for us if the confidence
which India's people have in their democratic in-
stitutions should fail.

Latin America

I should like to say a word now about this hem-
isphere. The recent action of the Tenth Inter-
American Conference at Caracas marks an
important step forward in unifying this hemi-
sphere against the threat of international com-
munism.

There was then adopted a Declaration of
Solidarity for the Preservation of the Political
Integrity of the American States against Interna-
tional Communist Intervention.^ It was deter-
mined, with only Guatemala dissenting, that the
domination or control of the political institutions
of any American state by the international Com-
munist movement would constitute a threat to the
sovereignty and political independence of the
American states, endangering the peace of
America.

It is not, however, enough that the Communist
threat should be recognized for the danger that
it is. It is also necessary that steps be taken to
show solidarity on the economic front.

Living standards in most of Latin America are
low and there ai'e large and vocal elements who
seek to place the blame on the United States.

Our Mutual Security Program recognizes the
importance of economic growth and better stand-
ards of living in Latin America. Private enter-
prise is the main channel through which our Na-
tion can help. However, certain governmental
measures are also needed as a supplement. These
include the technical cooperation programs. The
Mutual Security Program for 1955 will provide
for this type of assistance in Latin America and
elsewhere. It produces results far greater than
can be measured by the dollars appropriated, for
it spreads knowledge that helps others to help
themselves.

Far East

In the Far East, the end of the fighting in Korea
has its impact on the 1955 Mutual Security Pro-
gram.

It is no longer necessary for the Department of
Defense to expend the billions which were involved
in conducting active fighting. In place of this

' For text, .see ihid., Apr. 20, 1954, p. 6:^8.

June 74, 1954

923

destructive and wasteful expenditure, there is now
a program for relief and rehabilitation of the
Republic of Korea. This in part is being con-
ducted by the United Nations, but the main part
is a United States effort.

It is an immense task to restore domestic well-
being in war-ravaged Korea. However, the cost
represents only a small fraction of what would be
the cost of waging war. We believe that the ac-
complishment of this peaceful task will be in the
interest of the United States and of the free world
if it shows, as we know it can, the capacity of free
men to excel in the arts of peace.

The Government of Japan is now planning to
assume a larger share of responsibility for its own
defense. On May 1, 1954, a Mutual Defense As-
sistance Agreement between the United States and
Japan came into effect.^ Within the last few days
the Japanese Diet has enacted legislation estab-
lishing a new national defense agency and author-
izing an increase in the present size of the national
safety forces. Under the Mutual Defense Assist-
ance Agi-eement, the United States is planning
military end-item assistance to Japanese defense
forces. Wliile this will create an item of cost for
the United States, it is a cost which will have
compensating benefits.

Indochina

The situation in Indochina is fraught with dan-
ger, not only to the immediate area but to the
security of the United States and its allies in the
Pacific area. The area is one which is vital to the
peace and safety of the United States.

Communist China has been supplying to the
Viet Minh an everincreasing volume of munitions
and military supplies. There is also evidence that
Soviet arms have been supplied in increasing
quantities to the Communist force in Indochina.

In their classic manner, the Communists have
sought to capitalize on local aspirations for in-
dependence and have used these aspirations to
gain control of a movement which was primarily
nationalistic in its inception. The rulers of Com-
munist China train and equip in China the troops
of their puppet Ho Chi-Minh. They supply these
troops with large amounts of artillery and ammu-
nition made in Soviet-bloc countrias. They sup-
ply military and technical guidance in the staff
section of Ho Chi-Minh's Command, at the divi-
sion level, and specialized units such as the sig-
nal and engineering corps, artillery units, and
transportation.

The plan is not only to take over Indochina but
to dominate all of Southeast Asia. The struggle
thus carries a grave threat not only to Viet-Nam,
Laos, and Cambodia, but also to such friendly
neighboring countries as Thailand, Malaya,

' For text, see ibid., Apr. 5, 1954, p. 520.
924

Burma, Indonesia, the Philippines, Australia, and
New Zealand.

The United States Government has been alive
to the growing peril. We have encouraged the
French in taking steps toward the granting of
full independence to Viet-Nam, Laos, and Cambo-
dia. We have provided a great part of the mil-
itary materiel needed by the French Union forces
and the national armies of Cambodia, Laos, and
Viet-Nam. We have agreed to finance most of
the cost of the fight to maintain the freedom of the
Associated States. Particularly we have sought
to help in equipping and maintaining an increased
number of national forces.

In the Mutual Security Program for 1955 pro-
vision is made for continuing such support. With
the many uncertainties that lie ahead, it is essen-
tial that there be adequate flexibility in the use
of funds appropriated so that necessary expendi-
tures can be made to accomplish in Southeast Asia
and the Western Pacific the policies and purposes
declared in the Mutual Security Act.

You are all aware that the French and their
Viet-Nam ally have suffered reverses, notably the
fall of Dien-Bien-Phu, after a superb defense.
The present situation is grave, but by no means
hopeless.

In the present conference at Geneva, we and
other free nations are seeking a formula by which
the fighting can be ended and the people of Indo-
china assured true independence. So far, the
Communist attitude is not encouraging. It is im-
possible to predict what the future holds.

The uncertainties of the future in the Far East,
like the exigencies of the world situation elsewhere,
indicate the essential need for flexibility in the
use of the funds authorized and appropriated in
this program. If we are to be able to make the
most effective use of what we have, the President
must be in a position to move quickly and de-
cisively to do what will, under the circumstances,
best serve the ends which the act is designed to
promote. For this reason we believe that the
flexibility provided in this legislation in the past
should be continued.

I should like to refer briefly to the administra-
tion of this program. I said last year that I
thought it could be best administered by another
agency outside the Department of State. I know
that the question of the proper agency for admin-
istering the program has been a matter of consider-
able discussion in the Congress — as it has in the
executive branch. I think I should tell you that
I am well satisfied with the manner in which the
present arrangements have worked out and recom-
mend their continuation for the next fiscal year.

In conclusion, let me look for a moment at this
Mutual Security Program in its larger meaning.

The present world situation demands, as a first
priority, the maintenance of unity and cooperation
among the non-Communist nations. Not one of
us alone could face with assurance an all-out strug-

Deparlment of State Bulletin

gle with the Comiminist empire. Its rulers now
hold in servitude 800 million people, and they
have harnessed these people and the great mate-
rial resources of their lands to a triple threat of
war, subversion, and propaganda which consti-
tutes the most formidable menace that free peoples
have ever had to face. Fortunately, the free world
capacity for instantaneous retaliation helps to
neutralize the Soviet threat of mass destruction.
Nevertheless, the need for unity among free
peoples in developing additional resistance and
deterrents to Communist expansion is increasingly
evident.

Unity requires mutual respect and forbearance
on the part of all of the free nations. There is a
natural impatience in each free country with the
inhibitions and limitations of collective action.
In some countries, there are those who protest that
the cooperation of their governments in this com-
mon cause means subjugation to alien influence
and who argue that they should pi'ove their inde-
pendence by practicing neutralism. Some in this
country feel that the United States would do better
if it sought to cast off the world-wide military and
economic burdens and political anxieties which
history has thrust upon us.

But such a course would merely play the Soviet
game. The destruction of free world unity is the
principal goal of Soviet strategy. All their di-
plomacy, their propaganda, their pressures, and
their inducements have this aim.

This Ignited States Mutual Security Programis
one of the ways to prevent the success of Soviet
strategy. It helps indispensably to maintain a
unity which is vital to our own security. Without
that' unity, the United States would quickly be
forced to become a garrison state and the stran-
gling noose of communism would be drawn ever
tighter about us.

Moreover, the Mutual Security Program per-
mits the free world to develop more total strength
than we could possibly develop by spending the
same amount of money in this country. Let us
never forget that our allies are spending three
dollars for defense purposes for every dollar that
we give them. The safety of this country no
longer depends merely upon our own armed forces,
important as they are, but upon the combined
military power and political and economic sta-
bility of the free world as a whole. For this
reason. I can say with complete assurance that
every dollar in this Mutual Security Progi-am is
designed to protect and advance the security and
well-being of the United States itself. I urge,
therefore, that this program be given your prompt
and sympathetic consideration.

Current Legislation on Foreign Policy:
83d Congress, 2d Session

Review of the United Nations Charter. Hearing before a
Subcommittee of the Senate Committee on Foreign
Relation.s on Proposals to Amend or Otherwise Mod-
ify Existing International Peace and Security
Organizations, Including the United Nations. Part
1, January 18 and March 3, 1954, 62 pp.

Study of Coffee Prices. Hearings before a Special Sub-
committee of the Senate Committee on Banking and
Currency on S. Res. 182 and S. Res. 19.5, to Investi-
gate Recent Coffee I'rice Increases and Problems Re-
lating to Economic Stabilization, etc. Part 1. Feliru-
ary 8, 9, March .">, IG, IS, April 5 and 6, 1954, 354 pp.

Report on the Operations of the Department of State
(Under Public Law 584). Message from the Presi-
dent Transmitting a Report by the Secretary of State
on the Operations of the Department of State, Pur-
suant to Section 2 of Public Law 584, 79th Congress.
H. Doc. 365, April 7, 19.54, V, 81 pp.

Admeasurement of Vessels. Amendments to Ship Mort-
gage Act, and Rules for Loading and Stowage of
Grain. Hearings before a Subcommittee of the Sen-
ate Committee on Interstate and Foreign Commerce
on S. 2814, S. 2407, and S. 602. March 22, 23, 24, and
April 8, 1954, 126 pp.

Amendment to Flammable Fabrics Act (Exemption of
Fabrics Not Highly Flammable). Hearing before a
Subcommittee of the Senate Committee on Inter-
state and Foreign Commerce on S. 3379. May 11,
1954, 40 pp.

Authorizing Transmission and Disposition by the Secre-
tary of the Interior of Electric Energy (Generated at
Falcon Dam on the Rio Grande. Report to accom-
pany S. 3090. S. Rept. 1340. Jlay 14, 19.54. 8 pp.

How the United Nations Charter Has Developed. Staff
Study No. 2, Subcommittee on the United Nations
Charter of the Senate Committee on Foreign Rela-
tions. Committee print. Jlay 18, 1954, V, 20 \sp.

Amending Certain Provisions of Part II of the Interstate
Commerce Act to Provide for the Regulation, for Pur-
poses of Safety and Protection of the Public, of Cer-
tain Foreign Motor Carriers Operating in the United
States. Report to accompany H. R. 746S. H. Rept.
1628, May 19, 1954, 12 pp.

Special Report on Spain and French Morocco Covering
Economic and Military Programs Under Spanish
Agreements, Spain and Her People (Bacliground
Analysis), French Moroccan Airbase Program, De-
partment of State Activities, United States Informa-
tion Agency Activities, by Hon. Dennis Chavez,
Chairman, Special Subcommitte of the Senate Com-
mittee on Appropriations. Committee print. Janu-
ary 1954. 39 pp.

Health Inquiry. Hearing before the House Committee on
Interstate and Foreign Commerce on Hospital and
Mrdical Care Programs in Foreign Countries. Part 8 ;
.Ian. 11, 19.54; Health and Maternity Insurance
Throughout tlie World ; Hospital and Medical Care
Programs in Great I5ritain, Sweden, New Zealand,
Australia. IV, pp. 2.56.5-3151.

Regulation of Coffee Futures Trading. Hearing before
the Senate Committee on Agriculture and Forestry
on S. 1386, a Bill To Amend Section 2 of the Com-
modity Exchange Act, as Amended, Relating to the
Meaning of the Word "Commodity". Feb. 2, 19.54.
76 pp.

June 14, 1954

925

Amending the Atomic Energy Act

Statement hy Secretary Dulles ^

I appreciate the opportunity to testify before
your Committee in support of the foreign policy
aspects of the bills to amend the Atomic Energy
Act of 1946.

Since 1946 much has happened. At that time
the United States had a unique position — virtually
an exclusive position — with regard to the utiliza-
tion of atomic energy. We were prepared to
donate our unique body of knowledge to a depend-
able international organization. Having it within
our power to dominate the world by force — some-
thing contrary to every principle of our national
morality — we proposed voluntarily to divest our-
selves of that power and place it under interna-
tional control. Never in history has any nation
made a comparable proposal. It was rejected by
the Soviet Union, which thereby must assume
before history the consequences which may come
from its stubborn choice that this vast power of
human destruction should be a national rather
than an internationalized asset.

In 1946 it seemed that, subject to possible inter-
nationalization, total secrecy would best serve the
interests of our nation and oi all humanity. Since
1946 such monopoly as we had has ended. To
some extent that was due to treachery and treason.
But we would be foolish not to rate highly the
scientific capabilities of the Soviet society. It is
not easy to estimate the relative roles played by
different factors ; but we do know that in combi-
nation they have led to a situation such that our
potential enemies have a knowledge vastly supe-
rior to that of most of the nations which we count
as friends.

This is an unhealthy state of affairs. It means
that the present very strict secrecy requirements
of the 1946 Act no longer represent the wisest in-
ternational policy. We need to assert leadership
in turning atomic energy to the peaceful service
of mankind. To some extent this is merely en-
lightened self-interest, since if we do not take this
step our foreign raw-material sources will tend to

'Made before the Joint Consre.ssional Committee on
Atomic Energy on June .3 (press release 295).

926

dry up and be turned to uses for which others may
supply the technology. Also we need to equip
our allies with the knowledge which will enable
them to counter the kind of atomic warfare which
we know the Conununist forces are equipped to
wage.

The pending bill would serve these foreign
policy objectives. Tliese objectives are both indis-
pensable and urgent. They call for action apart
from the important domestic aspects of the pro-
posed legislation.

International Cooperation — Peaceful Uses

About 2 weeks ago it was announced that the
1954 thermonuclear testing in the Pacific was fin-
ished. Speaking of this testing, the Chairman of
the Atomic Energy Commission, Admiral Strauss,
had earlier said". . . one important result of these
hydrogen bomb developments has been the en-
hancement of our military capability to the point
where we should soon be more free to increase our
emphasis on the peaceful uses of atomic power —
at home and abroad." ^ As I see it, a main pur-
jjose of the proposed legislation is to do just that —
"to increase our emphasis on the peaceful uses of
atomic power at home and abroadP

In London, disarmament negotiations in the
United Nations Disarmament Commission Sub-
committee are going on. We are searching for a
long-term solution to the problem of ever-increas-
ing armaments. Here at home we are searching
for interim techniques to permit peacetime uses or
atomic energy to go forward until we find a solu-
tion to the armaments problem. We camiot any
longer adhere to the theory that knowledge, be-
cause it is capable of use for destruction, must be
denied for uses of construction.

President Eisenhower recognized this when he
proposed his international atomic energy agency
plan last December before the United Nations
Assembly.^ By amending the Atomic Energy Act
now as proposed, we will be laying some of the

= Bulletin of Apr. 12, 1954, p. 549.
^lUi., Dec. 21, 19.53, p. 847.

Xispartmeni of %\Qie Bulletin

groundwork for a future era of peace -when atomic
energy inevitably will be doing constructive work
in the world.

This policy is not only humanitarian. It also
serves our national interest. We shall get more
uranium from abroad when the uranium business
becomes more advantageous for supplying nations
in terms of advancing their nuclear power aspira-
tions. They want knowledge even more than
money. This want can only be met by us by mak-
ing it possible for some American technical infor-
mation and some American material to go to such
countries when it is in our interest.

There is a degree of dependence on our part on
off-shore sources of uranium for our national pro-
gram. Naturally such uranium supplying nations
look to the day when electric power will be pro-
duced in such nations from their own uranium.

Three circumstances — ( 1 ) the developing Soviet
program, (2) our dependence on foreign uranium,
and (3) legitimate hopes for nuclear power
abroad — combine to create the need to amend the
international cooperation provisions of the Atomic
Energy Act of 1946.

Other countries are making progress in atomic
power technology. There is a growing tendency
for certain raw-materials supplying nations which
are not industrially well advanced to turn to such
other countries for nuclear power information be-
cause they have been disappointed by our inability
to give them significant help. It is clear to me
that if this trend continues, the interests of the
United States will be seriously affected. There is
no need here to emphasize how important it is for
us to stay ahead of the U. S. S. R. in providing
knowledge of how to put atomic energy to peace-
ful uses.

In extending abroad, under proper security
safeguards, the evolving technology of atomic
energy for peaceful purposes, we shall tighten the
boncls that tie our friends abroad to us, we shall
assure material resources that we need, and we
shall maintain world leadership in atomic
energy — leadership which today is such a large
element of our national prestige.

President's U.N. Proposal

I know that tlie hope has been expressed that
the proposed legislation will be sufficiently broad
to permit implementation of the President's inter-
national atomic energy proposals expressed last
December. I would certainly like to be able to tell
you that the time is ripe for putting such pro-
posals into operation. This unfortunately is not
the case, and until we have a clearer idea of how
the international discussions on the President's
proposal will evolve, we are not in a position to
state that the bill contains all the authority which
will ultimately be required. However, the lan-

guage of the proposed bills does not offer any
obstacles to the President's proposal and lays the
general groundwork needed to implement it. I
would point out, however, that the international
negotiations to implement this plan are still in an
inconclusive state.

International Cooperation — Military Uses

I support also a change in our atomic energy
law to permit disclosure of certain military infor-
mation to our allies. The President some 3 months
ago said :

Our own security will increase as our allies gain infor-
mation concerning the use of and the defense against
atomic weapons. Some of our allies, in fact, are now
producing fissionable materials or weapons, supporting ef-
fective atomic energy research, and developing peacetime
uses for atomic power. But all of them should become
better informed in the problems of atomic warfare and,
therefore, better prepared to meet the contingency of such
warfare.*

The gravity of the present international situa-
tion lends great emphasis to these words of the
President and lends added urgency to this matter
of increasing our allies' capabilities in these new
techniques of war. We particularly need author-
ity to transfer to nations participating in defense
arrangements with the United States a limited
type of tactical information essential to defense
planning and training of personnel for atomic
warfare.

In the conduct of our foreign relations much is
beyond our control. But here is an instance where
it is clearly within our control to increase United
States ability to gain greater security. The pres-
ent legal restraint on disclosure of even limited
types of weapons information has become a real
handicap in our collective effort with our allies
to build necessary strength to resist aggression.
I understand that the Department of Defense is
concerned because the remedial language of the
bill authorizing this type of military interchange
falls somewhat short of what is needed. I hope
a way can be found to permit the amount of inter-
change of military information which is needed
to enhance our security.

In modernizing our atomic energy law I feel
that we will be taking three steps in the direction
of peace : First, we will be increasing the deterrent
factor represented by our weapons stockpile by
the provisions we have requested pennitting us
to integrate certain tactical weapons information
into our foreign military planning; second, by
being able to give our friends abroad atomic
energy information and material, we shall be
strengthening our capacity to build the raw-mate-
rial base on which our entire atomic energy pro-
gram rests; and third, we will be strengthening
the ties which unite the free nations by a sense of
fellowship.

Ubid., Mar. 1, 1954, p. 304.

June 14, 1954

927

Throughout the world this legislative proceed-
ing is being followed with unusual intei'est. For-
eign statesmen and soldiers are waiting to see
whether the United States, through this Congress,
will follow through with its program to make
atomic armaments a part of the weapons systems
of the alliances in which the United States is a
partner. Scientists and engineers of friendly na-
tions are also waiting to see if America will be
willing to open up some of its peacetime nuclear
technology in return for raw materials and other
advantages flowing to the United States. Perhaps
most significant of all, however, are the hundreds
of millions of people in the world who, having
heard of the promise of atomic energy, wait
eagerly to see if there are benefits in it for them
in addition to the military shield which has held
off the aggressive forces of Soviet communism for
almost a decade. The military atom is a fear-
some thing, even to those who owe their liberties
to it. The constructive use of atomic energy
could promote both peace and plenty, and so holds
a special place in man's dream of the future.

The bills which your Committee is considering
need to be enacted if our nation is to serve its own
interests and at the same time to show the world
anew that our national interests harmonize with
the interests of men everywhere.

TREATY INFORMATION

Signing of Supplementary Tax
Protocol With United Kingdom

Press release 282 dated May 25

On May 25 Secretary Dulles and the British
Ambassador, Sir Roger Makins, signed a supple-
mentary protocol amending the income-tax con-
vention of April 16, 1945, as amended by the sup-
plementary protocol of June 6, 1946.

The 1945 convention relates to the avoidance of
double taxation. The provisions of article XXII
set forth a procedure by which the convention may
be extended to overseas territories. Those provi-
sions, for example, would make it possible for the
British Government to give this Govermnent a
formal notification of a desire that the 1945 con-
vention, as amended, apply to "all or any of its
colonies, overseas territories, protectorates, or ter-
ritories in respect of which it exercises a mandate,
which impose taxes substantially similar in char-

acter to those which are the subject" of the conven-
tion. A period of 60 days from the date of that
notification is allowed for this Government to act
with respect to the notification. In the absence of
a specific rejection by this Government, the ex-
tended application would be automatic at the end
of the period of 60 days. Moreover, the entire con-
vention would apply, no pi'ovision being made for
niodifying or eliminating any of the convention's
provisions so far as the territories are concerned.

As a result of action taken, and policies ex-
pressed, by the Senate in approving income-tax
conventions with certain other countries in 1948,
1951, and 1952, having the effect of deleting or
modifying certain provisions similar to provisions
which had been approved in the United Kingdom
convention, it became necessary to consider an
amendment of the territorial-extension provisions
in article XXII of the 1945 convention with the
United Kingdom.

The new supplementary protocol has only one
substantive article, whereby the territorial-exten-
sion procedure provided in article XXII of the
1945 convention is amended so that (a) no limita-
tion of time is placed on action by either Govern-
ment in taking action with respect to a notification
from the other, (b) certain provisions of the con-
vention could be deleted or modified so far as ex-
tension to particular colonies or other territories
is concerned, and (c) no extension would be effec-
tive until formally accepted by the Government
receiving the notification. In these respects, the
protocol makes the convention with the United
Kingdom consistent, so far as territorial-extension
provisions are concerned, with corresponding pro-
visions in tax conventions between the United
States and certain other countries.

The supplementary protocol will be transmitted
to the Senate for its advice and consent to ratifica-
tion. According to its terms, it will become an
integral part of the convention when bi'ought into
force by the exchange of instruments of ratifica-
tion.

i

Signing of Estate-Tax Convention
With Belgium

Press release 2SS dated May 27

On May 27 Secretary Dulles and the Belgian
Ambassaclor, Baron Silvercruys, signed a conven-
tion between the United States and Belgium for
the avoidance of double taxation and the preven-
tion of fiscal evasion with respect to taxes on es-
tates and successions.

The provisions of the convention follow, in gen-
eral, the pattern of estate-tax conventions entered
into by the United States with a number of other

928

Department of State Bulletin

countries. Such conventions are designed to
eliminate double taxation in connection with the
settlement in one country of estates in which na-
tionals of the other country have interests.

So far as the United States is concerned, the
convention with Belgium applies only with respect
to U.S. (that is, Federal) taxes. It does not apply
to the imposition of taxes by the several States,
the District of Columbia, or the Territories or
possessions of the United States.

Under the terms of the convention, it will be
brought into force by the exchange of instruments
of ratification but effective only as to the estates
or successions of persons dying on or after the
date of such exchange. The convention will be
submitted to the U.S. Senate for advice and con-
sent to ratification.

Current Actions

MULTILATERAL
Shipping

Convention on safety of life at sea. Signed at London
June 10, 194S. Entered into force November 19, 1952.
TIAS2495. Acceptance deposited: Nicaragua, February
19, 1954.

International Load Line Convention. Signed at London
July 5, 1930. TS 858. Notification of accession: Nica-
ragua, February 19, 1954. Application to: Federation
of Malaya, April 10, 1954.

Trade and Commerce

Convention on uniformity of nomenclature for the clas-
sification of merchandise. Signed at Santiago May 3,
1923. Entered into force October 8, 1924. TS 754.
Notification of withdrawal: United States, May 24, 1954.
Withdrawal will be effective May 24, 1955.

BILATERAL
Belgium

Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on
estates and successions. Signed at Washington May 27,
1954. Enters into force upon exchange of ratifications.

Dominican Republic

Agreement amending vocational education program agree-
ment of 1951 (TIAS 2244), as modified, and providing
financial contributions for the program. Effected by
exchange of notes at Ciudad Trujillo February 19 and
March 19, 1954. Entered into force March 19, 1954.

Japan

Agreement for the loan of United States naval vessels
to Japan. Signed at Tokyo May 14, 1954. Enters into
force upon ratification by Japan.

Pakistan

Mutual defense assistance agreement. Signed at Karachi
May 19, 1954. Entered into force May 19, 1954.

U.S. Delegations to
International Conferences

international Labor Conference

The Department of State announced on May 28 (press
release 291) that the United States will be represented
at the thirty-seventh session of the International Labor
Conference, to open at Geneva on June 2, by the following
delegation :

Representing the Goveenment op the United States

Delegates

J. Ernest Wilklns, Assistant Secretary of Labor
Arthur B. Langlie, Governor, State of Washington,
Olympia, Wash.

Substitute Delegate and Adviser

Warren E. Burger, Assistant Attorney General in charge
of the Civil Division, Department of Justice

Advisers

Donald H. Dabelstein, Assistant Director for Program,
Otfice of Vocational Rehabilitation, Department of
Health, Education, and Welfare

Theophil C. Kammholz, Consultant to Secretary of Com-
merce, Department of Commerce

Alice K. Leopold, Director, Women's Bureau, Department
of Labor

Otis E. Mulliken, OflBcer in Charge, United Nations So-
cial Affairs, Oflice of United Nations Economic and
Social Affairs, Department of State

Edward B. Persons, Chief, Ilo Division, Office of Inter-
national Labor Affairs, Department of Labor

Advisers

Philip B. Sullivan, Labor Adviser, Bureau of Far Eastern
Affairs, Department of State

Arnold Zempel, Executive Director, OflSce of Interna-
tional Labor Affairs, Department of Labor

Representing the Employers op the United States
Delegate

William L. McGrath, President, Williamson Heater Com-
pany, Cincinnati, Ohio

Advisers

Robert S. Dunham, Assistant General Manager of Indus-
trial Relations, Ford Motor Company, Dearborn, Mich.

Donald Knowlton, Hill and Knowlton, Cleveland, Ohio

Richard K. Lane, President, Public Service Company of
Oklahoma, Tulsa, Okla.

Milton M. Olander, Director, Industrial Relations, Owens-
Illinois Glass Company, Toledo, Ohio

Sybyl S. Patterson, Director of Employee Relations, Na-
tional Association of Manufacturers, New York, N. Y.

William G. Van Meter, Attorney, Labor Relations De-
partment, Chamber of Commerce of the United States,
Washington, D. C.

Representing the Workers of the United States

Delegate

George P. Delaney, International Representative, Ameri-
can Federation of Labor, Washington, D. C.

Advisers

Alexander Barkan, Political Action Director, Textile
Workers Union, Congress of Industrial Organizations,
New York, N. Y.

William J. Buckley, International Secretary-Treasurer,
International Brotherhood of Boilermakers, Iron Ship-

June 14, 1954

929

builders, Blacksmiths, Forgers and Helpers, Kansas
City, Kans.

Elmer F. Cope, International Representative, United
Steelworkers of America, Congress of Industrial
Orf-'anizations, Lewisburg, Ohio

Edward S. Miller, Secretary-Treasurer, Hotel and Restau-
rant and Bartenders International Union, Cincinnati,
Ohio

Leslie L. Myers. President, International Association of
Bridge, Structural and Ornamental Iron Workers of
the American Federation of Labor, District Council,
Washington, D. C.

Michael Ross, Congress of Industrial Organizations Repre-
sentative, International Confederation of Free Trade
Unions, Brussels, Belgium

Secretary of Deleyation

Thomas J. Hunt, Office of International Conferences, De-
partment of State

Documents Officer

John F. Jason, Resident United States Delegate to Inter-
national Organizations, Geneva, Switzerland

The International Labor Conference is a forum in
which representatives of employers and workers as well
as governments for the 60 member countries formulate,
through consultation and debate, suggested standards
looking to the improvement of working and living con-
ditions around the world. The other principal organs of
the International Labor Organization (Ilo) are the
Governing Body, which is the executive council, and the
International Labor Office, which is the secretariat of the
organization.

The items on the agenda for the thirty-seventh session
of the Conference, as determined by the Governing Body
at its 120th session (Geneva, November 1952), and by
the International Labor Conference at its 36th session
(Geneva, June 1953), are as follows: (1) report of the
Director General, (2) financial and budgetary questions,
(8) information and reports on the application of Con-
ventions and Recommendations, (4) vocational rehabili-
tation of the disabled, (.">) migrant workers, (0) penal
sanctions for breaches of contract of employment, and
(7) holidays with pay. The work of the Ilo, under the
Expanded Program of Technical Assistance, will also be
discussed by the Conference.

U.N. Trusteeship Council

The Department of State announced on June 2
(press release 292) that the United States would
be represented at the 14th session of the U.N.
Trusteeship Council, convening on that date at
U.N. Headquarters in New York City, by Mason
Sears, U.S. representative in the Council, and two
advisers, Robert R. Robbins and Curtis C. Strong
of the Office of Dependent Area Affairs, Depart-
ment of State.

One of the topics of particular interest to the
United States on the Council's provisional agenda

is the United States report on the administration
of the Trust Territory of the Pacific Islands. For
this purpose, the High Commissioner of the Ter-
ritory, Frank E. Midkifl', will come to New York
to serve as special representative and to answer
questions by Coiuicil members regarding condi-
tions in the Trust Territory. He will be assisted
in this task by William Yeomans of the Depart-
ment of the Interior and Commander L. G. Find-
ley of the Department of the Navy.

The l-tth session is expected to adjourn on or
about July 16.

International Cotton Advisory Committee

The Department of State announced on June 4 (press
release 299) that the United States Government would
be represented at the Thirteenth Plenary Meeting of the
International Cotton Advisory Committee at Sao Paulo,
Brazil, beginning June 7, by the following delegation :

Delegate and chairman

John H. Davis, Assistant Secretary of Agriculture

Associate delegate

Edwin Dean White, Deputy Director, Office of Food and
Agriculture, Foreign Operations Administration

Alternate delegate

F. Marion Rhodes, Director, Cotton Division, Commodity
Stabilization Service, Department of Agriculture

Advisers

Clarence C. Brooks, Consul General, American Consulate
General, Sao Paulo

Read P. Dunn, Director of Foreign Trade, National Cotton
Council

Rene Lutz, Deputy Director, International Resources
Staff, Bureau of Foreign Commerce, Department of
Commerce

Stanley Xehmer. Secretary of Delegation, Chief, Agricul-
tural Raw Materials liranch. Agricultural Products
Staff, Department of State

The International Cotton Advisory Committee was
established in accordance with a resolution approved by
the governments of ten of the major cotton-exporting
countries at the International Cotton Meeting held at
Washington in 1939 for the purpose of discussing the
international cotton situation. Its functions are to ob-
serve and keep in close touch with developments in the
world cotton situation and to suggest, as and when advis-
able, measures considered suitable and practicable for the
achievement of ultimate international collaboration.

Governments of 30 cotton exporting and importing coun-
tries are members of the Committee at the present time.

The first and second sessions of the Twelfth Plenary
Meeting were held at Washington in May and November
1953, respectively.

930

Deparfmenf of State Bulletin

June 14, 1954

Index

Vol. XXX, No. 781

American Principles

Education and Freedom — Core of the American Dream

(Eisenhower) 899

The Korean People's Right to Unity and Independence

(Smith) (text of South Korean proposals) .... 915

Arab States. Eric Johnston To Resume Talks on Jordan

Valley Development 913

Atomic Energy. Amending the Atomic Energy Act

(Dulles) 926

Belgium. Signing of Estate-Tax Convention With Belgium. 928

Claims and Property. High Commission for Germany

Establishes Patent Appeal Board (text of regulation) . 913
t Congress, The

Amending the Atomic Energy Act (Dulles) 926

I Current Legislation 925

Maintaining Free World Tnity (Dulles) 921

Economic Affairs. Foreign Trade and Military Policy

(Hensel) 918

Germany. High Commission for Germany Establishes

Patent Appeal Board (text of regulation) .... 913

Global Relations of the United States (Hoggs) 903

International Organizations and Meetings. U.S. Delegations

to International Conferences 929

Israel. Eric Johnston To Resume Talks on Jordan Valley

Development 913

Japan. Mr. Yoshida's Trip Postponed 918

Korea. The Korean People's Right to Unity and Inde-
pendence (Smith) (text of South Korean proposals) . 915

Malaya, Federation of. New High Commissioner for Fed-
eration of Malaya 914

Military Affairs. Foreign Trade and Military Policy

(Hensel) 919

iMutual Security

Maintaining Free World Unity (Dulles) 921

U.S., Turkey Discuss Matters of Common Interest (text of

joint communique) 912

Presidential Documents. Education and Freedom — Core of

the American Dream 899

Romania. Persecution of Jews in Rumania (Murphy) . 914

Treaty Information

iCurrent Actions 929

iSigning of Estate-Tax Convention With Belgium . . . 928

Si-.'iiing of Supplementary Tax Protocol With United

Kingdom 928

Turkey. U.S., Turkey Discuss Matters of Common Interest

(text of joint communique) 912

United Kingdom. Signing of Supplementary Tax Protocol

With United Kingdom 928

Name Index

Hoggs, S. Whittemore 903

Dulles, Secretary 914, 921, 926

Eisenhower, President 899

Hensel, H. Struve 919

Johnston, Eric 913

McGillivray, Sir Donald 914

Menderes, Adnan 912

Murphy. Robert D 914

Smith. Walter Bedell 915

Yoshida, Prime Minister 918

Check List of Department of State
Press Releases: May 31-June 6

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

Press releases issued prior to May 31 which ap-
pear in this issue of the Bulij;tin are Nos. 2S2 of
May 25, 28S of May 27, and 291 of May 28.

No. Date Subject

292 6/2 Trusteeship Council meeting

293 6/2 German Patent Appeal Board

294 6/3 Murphy ; Jews in Rumania

295 6/3 Dulles : Atomic Energy Act

t296 6/3 Holland appointed to Railway Commis-
sion

297 6/4 Dulles : Mutual Security Act

298 6/4 Eric Johnston's trip

299 6/4 Cotton Advisory Committee

300 6/5 U.S.-Turkish communique
tSOl 6/5 Americans in China

302 6/5 Yoshida's visit postponed

303 6/5 New Malayan High Commissioner

t Held for a later issue of the Bulletin.

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Foreign Relations of the United States . . .
the basic source of information on U.S. diplomatic history

1936, Volume V, The American Republics

Besides dealing with multilateral aspects of economic and
political questions involving the United States and other Ameri-
can Republics, this volume includes also correspondence on the
bilateral relations between the United States and the govern-
ments of 19 American Republics.

Of chief interest in the record on multilateral negotiations
are (1) the preliminary documentation on the Inter- American
Conference for the Maintenance of Peace held at Buenos Aires ;
(2) correspondence on the Chaco Peace Conference, which
achieved agreement of Bolivia and Paraguay to a Protocolized
Act putting into eif ect recommendations of the Conference, and
resumption of diplomatic relations between the two former
belligerents.

More than two-thirds of the correspondence on bilateral rela-
tions is concerned with commercial and financial topics, par-
ticularly with the reciprocal trade agreements program.

Copies of this volume, the last to be issued in the series of
five Foreign Relations volumes for the year 1936, may be pur-
chased from the Superintendent of Documents, Government
Printing Office, Washington 25, D.C., for $4.50 each.

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Vol. XXX, No. 782
June 21, 1954

INTERNATIONAL UNITY • Address by Secretary Dulles . 935

U.S. VIEWS ON COMMUNIST PROPOSALS AT

GENEVA 940

A PROGRESS REPORT ON SPANISH-AMERICAN

COOPERATION • by Ambassador James Clement Dunn . 960

U.S. AND CANADA INAUGURATE NIAGARA FALLS

REMEDIAL PROJECT 954

For index see inside back cover

Doston Public Li".:rary
Superintendent of Documents

JUL 16 1954

^ne z//€/ia,'ii^^irLe7i^ cf ^icile

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Vol. XXX, No. 782 • Pubucation 5507
June 21, 1954

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Note: Contents of this publication are not
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The Department of State BULLETIN,
a weekly publication issued by the
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public and interested agencies of
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developments in the field of foreign
relations and on the work of the De-
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the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

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

International Unity

Address by Secretary Dulles ^

It is ins]5iring to see liere the representatives
of many different countries. You are here because
you share the ideals represented by the Rotary
Internationah Thus diversity manifests unity.

Diversity often seems a troublesome fact.
But the richness of life is, above all, due to dif-
ferences. No two human beings are exactly
alike. Each of us is in this sense a minority —
a minority of one. On the other hand, there
are elements of likeness which bind all mankind
together in the brotherhood of a single human
family.

There is no problem more difficult than that
of trying to build unity on a foundation of diver-
sity. I often have to speak of that at congres-
sional hearings which deal with appropriations
for mutual security and foreign aid. I have there
emphasized that we should not limit our friendly
cooperation to those who agree with us on all
points. A free society, I have pointed out, implies
difference.

I am sometimes struck by the fact that those
abroad who differ most violently from us are the
same ones who most violently criticize the fact that
we in the United States often differ among our-
selves.

On the other hand we must not be blind to the
fact that differences can mount to a point where
they become a real danger. The degree of dif-
ference that is tolerable depends on the degree
of peril, and there come times when differences
must be voluntarily submerged.

Perhaps today there is too much difference be-
tween the members of the non-Communist world.
Certainly the differences seriously multiply the
burden of conducting foreign affairs.

However, we can rejoice in the fact that we
can maintain the lofty goal of fruitful coexistence
between difference and unity. The Communists
have given up in despair trying to achieve that
goal. They have adopted a materialistic creed

' Mafle before the Forty-fifth Annual Convention of
Kotary International :it Seattle, Wash., on June 10 (press
release 316).

which exalts conformity and which treats human
differences as evils to be forcibly suppressed. The
dictatorship of the proletariat determines what
each individual shall do, where and how he and
she shall work, what they shall think, and what
they shall believe. In that way, they get a kind of
unity. It is, however, a unity which is bought at
a disastrous price, the price of denying the dignity
and worth of the individual human being.

Eather than pay that price, we should accept
all the burdens and the frequent failures which
inevitably result from trying to combine unity and
diversity. Also, we can know that in this matter
time works for us. There are circumstances under
which conformity can be imposed, perhaps for
long. But no iron discipline, no police state sys-
tem, can overcome the spiritual and natural foi'ces
which make men different. Tliose who stake their
future on enforced conformity are bound to fail.

The United Nations

It is, however, not enough to rejoice in our dif-
ference. We must find ways whereby, despite
differences, we can cooperate. In an era when
science has almost obliterated distance, it is in-
evitable that men should create institutions for
association. The most significant cooperative
effort is the United Nations.

Personally I have a great attachment to the
United Nations. I was a member of the United
States delegation which drew up the charter. I
have attended six out of the eight sessions of the
General Assembly.

I can assure you that President Eisenhower and
his administration support wholeheartedly the
United Nations. We intend to avail ourselves of
its processes wherever they are relevant to the
problems which engage us.

There are, I know, many who are discouraged
about the United Nations because they feel it
represents too much difference. Some would pre-
fer to have the membership reduced so that the
residual would represent greater conformity. I

June 27, 1954

935

admit that the present differences, coupled with
present voting procedures, impair the utility of
the United Nations as an active body. But this
could be remedied v^ithout constantly reducing
membership as a means to gain efficiency.

It is important to have a world forum, where
differences which actually exist in the world are
made apparent and can be judged.

So long as nations are genuinely independent
and have governments which do not violently
flout the peaceful principles of the United Nations,
then I think they should be part of a world
organization.

KOREA

That the United Nations can set forces in mo-
tion was shown in Korea. There, for the first
time in history, an international organization ac-
tually acted to meet aggression and to throw it
back. Sixteen members joined with the Republic
of Korea to fight until the aggressors had been
thwarted and the situation was such that the
United Nations felt that it had achieved those
objectives which justified the use of force. Then,
the United States, acting on behalf of the United
Nations, negotiated an armistice. Now, at
Geneva, we have joined with the Republic of
Korea and others to seek a peace which will unify
Korea in freedom.

The Communist aggressor group insist, how-
ever, that any solution shall be on terms which
exclude the United Nations as being itself a
wrongdoer because it opposed their aggression.

I do not believe that this is an issue which should
be compromised. Many men from many lands
have gone to Korea and have died there in battle.
They did so, not because their nations had been
specifically pledged to defend Korea, but because
Korea symbolized a principle of universal appli-
cation. They sought to develop the authority and
prestige of the United Nations as an international
force for the peace, security, and justice of all.

The Korean War had better not been fought if
in the end the aggressors and their accomplices
succeed at Geneva in besmirching the honor and
prestige of the United Nations.

INDOCHINA

A second political matter which today causes
much concern is the war in Indochina. There, the
State of Viet-Nam is the prey of violent forces of
rebellion, promoted and equipped from without.
The States of Laos and Cambodia have been in-
vaded, and Thailand is threatened.

It may be asked why this situation has not be-
fore now been brought to the United Nations. I
can assure you that this ignoring of the United
Nations was not the choice of the United States.

Now, I am glad to say, Thailand, one of the
members of the United Nations, has taken its situ-

ation to the United Nations and has asked the
Security Council to send a peace observation com-
mission to the area. Thailand has our strong
support in this matter. Last week the Security
Council placed the matter on its agenda by a vote
of 10 to 1, the sole dissent coming from the Soviet
Union.

It has been suggested that an affirmative re-
sponse to Thailand's appeal might in some way
impede the negotiations at Geneva with reference
to possible peace in Indochina. That argument
has little validity. A peace observation commis-
sion has no authority to make decisions. It is a
reporting body. It is the eyes and ears of the
world community. It is difficult to see why the
negotiations at Geneva would be impeded by the
fact that representatives of the United Nations
were in the area reporting what was going on.
Knowledge has never yet been an impediment to
honest negotiation.

COLONIALISM

There is another aspect of the United Nations
Charter to which I would refer. That is its Decla-
ration favoring increasing self-government by de-
pendent peoples. This provision and the related
provisions on trusteeship were largely a product
of United States effort.

It was natural that the United States should
have taken a lead in this matter. We ourselves are
the first colony in modern times to have won in- ,
dependence. We have a natural sympathy with I
those everywhere who would follow our example.

When the fortunes of war gave the United
States responsibilities in relation to non-self-gov-
erning peoples, such as in Cuba and the Philip-
pines, we quickly went about the business of
developing full self-government in total freedom.
Puerto Rico is already self-governing, within our
political system, and President Eisenhower has
said he would seek its complete independence if it
would prefer to go its separate way.

During recent years. Communist propaganda
has concentrated on efforts to portray the United
States as an imperialist colonialist power. The
charge is based upon our close and friendly asso-
ciation with Great Britain, France, and other
Western European powers, which have been, and
to some extent still are, colonial powers.

However, it should not be forgotten that during
the last 9 years the Western colonial powers have
given effect to the United Nations Charter pledge
to the extent of granting complete political inde-
pendence to over 600 million people now constitut-
ing 10 independent nations. Those who most
loudly attack "colonialism" have themselves, dur-
ing this same 9-year period, extended their despot-
ism to over 600 million people, and deprived all or
part of 11 once free nations of any semblance of
genuine independence.

936

Department of State BuUetin

Never before has the art of the "big lie" been so
boldly practiced.

I -would not have you think that we are com-
placent about the colonial situation. Abuses per-
sist, and there has been a slowing down of the
process of granting increased self-government.
That, however, is largely due to the Soviet Com-
munist strategy of using nationalism as a device
whereby it can absorb the colonial peoples.

Stalin, in one of his classic lectures which is now
part of the Communist bible, outlines the strategy
of "amalgamation" by means of "alliance with the
liberation movement of the colonies and dependent
countries." He outlines a two-phased program —
a program of duplicity. In the first phase the
Communistic agitators are to whip up the national-
istic aspirations of the people so that they will
rebel violently against the existing order. Then,
before independence can become consolidated and
vigorous in its own right, the Communists are to
take over the new government and use the power
to "amalgamate" the peoples into the Soviet orbit.

That plot is in active operation. Throughout
the newly liberated areas and those which seek
liberty. Communists operate, usually disguised as
local patriots. They are, in fact, the new imperi-
alist colonialists.

Wliat is going on in Indochina is a classic
example of this Commimist strategy. There, a
Moscow-indoctrinated Communist, Ho Chi-Minh,
was sent first to China and then to Indochina to
exploit the nationalistic aspirations of the people.
In Indochina, he utilized a revolutionary move-
ment that attracted much genuine native support.
He committed it to a violent effort which could
only succeed with the aid of training and supplies
from the Communist countries. This created a
dependence upon external Communist support
such that if any of the peoples of Viet-Nam, Laos,
or Cambodia should now end in the control of
Ho Chi-Minh, they would not, in fact, be inde-
pendent. They would be amalgamated into the
Soviet-Chinese Communist orbit under a ruthless
dictatorship, accepting the iron discipline of the
Soviet Communist Party as the self-proclaimed
"general staff of the world proletariat."

In much of the world the conditions created by
Communist strategy are such that the realization
of genuine independence has become a task of
infinite difficulty and delicacy.

I can assure you of two things :

1. The United States is pushing for self-govern-
ment. We do so more than is publicly known, for
in these matters open pressures are rarely con-
ducive to the best results.

2. When we exercise restraint, it is because of a
reasoned conviction that quick action would not,
in fact, produce true independence. Indeed, in
some situations hasty action would spell confusion

and division which would be the transition to a
captivity far worse than present dependence.

The United States some time ago outlined the
conditions which, in its opinion, would justify
the creation of a collective defense of Southeast
Asia. At the head of the list of those conditions
was the stipulation that there must be assurance
that the French will, in fact, make good on their
July 3, 1953, declaration of intention to grant
complete independence. The United States will
never fight for colonialism.

Collective Security Systems

The United States, in addition to its loyal mem-
bership in the United Nations, is also a member of
various regional and security arrangements.
These are authorized by the United Nations Char-
ter, and they operate within the framework of
that charter. The two major security arrange-
ments are that created by the Rio Pact of the
Americas, with 21 member nations, and that
created by the North Atlantic Treaty, with 14
members.

It is, perhaps, unfortunate that security has to
be sought other than in the United Nations itself.
The United Nations Security Council was designed
to have "primary responsibility for the mainte-
nance of international peace and security." But
it is not dependable because of the veto power. In
the case of the aggression against Korea, the Se-
curity Council was able to function because the
Soviet Union was at that time boycotting the
Security Council. In the main, however, the veto
power has been so misused by the Soviet Union,
which has cast 58 vetoes, that the Security Council
is not dependable.

Because of this paralysis of the Security Coun-
cil, certain nations, which were bound together by
ties of fellowship and of common danger, have
organized for their collective security under article
51 of the United Nations Charter.

These organizations also face their problems.
Indeed, both the North Atlantic Treaty Organiza-
tion and the Organization of American States
treaties face difficult tests.

NATO

In Western Europe, the North Atlantic Treaty
Organization has been built on the assumption
that there would be created a unity in Western
Europe which would embrace both France and
Germany and end the possibility of such differ-
ences as, in the past, have led to recurrent wars of
evergrowing intensity. To that end, the French
proposed a European Defense Community. It
would comprise six nations of Western continental
Europe, whicli would create a European Army,
which in Europe would wholly replace their na-
tional armies. This would mean that there would

June 21, J 954

937

not be in Europe separate armies of France and
Germany, but that in Eurojie the military forces
of both countries would be merged with that of
other forces into a European force, not subject to
national direction and not usable to serve national
ambitions.

After extended negotiation, a treaty to create
the European Defense Community was signed a
little over 2 years ago. Within the last year, the
process of ratification has been completed by four
of the six signatory nations. The United King-
dom and the United States have ratified the inter-
dependent treaties with West Germany and have
formally pledged close political and military as-
sociation with the Edc. However, ratification by
France and Italy is still in susjiense. In both of
these countries the opponents of Edc, fearing the
results of a vote, have pursued delaj'ing tactics.
Meanwhile, tension is reappearing between coun-
tries of continental Europe, and there is danger
that the old forces of divisive hatred will again
gain control and recreate the conditions which
have, in the past, bred war. The time for unity
is fast running out.

The United States has in recent years made a
tremendous investment in Western Europe.

In 1917, when it seemed that Europe might fall
under the militaristic rule of the German Kaiser,
we joined the battle and, through a great outpour-
ing of manpower and economic resources, helped
to turn back the despotic threat.

Again in 1940, when much of Europe had been
overrun by the armies of Nazi Germany, the
United States threw its weight into the scales and
went on to play a major part in rolling back that
new threat of despotism.

During the postwar period we underwrote a
gigantic economic and military program in aid of
Europe, represented by the Marshall plan and the
buildup of the North Atlantic Treaty Organi-
zation.

These three efforts, within a single generation,
have cost us much. There is scarcely a village in
the United States that does not display a roll
of honor listing the names of their young men who
died fighting in defense of Western civilization.
Our national debt has grown from about $3 bil-
lion in 1917 to about $260 billion at the present
time. The greater part of that represents the eco-
nomic cost of the three efforts I have described.

United States policy with respect to Europe is
based on a strong and viable Europe which in-
creases the security of the United States and the
•remainder of the free world. However, it is
fundamental that Europe itself must furnish the
preponderant strength to insure its own security.
This, we believe, is only possible if the resources
of the individual nations of Western Europe are
joined together. In other words, Europe must
make the best collective use of its individual capa-
bilities if it is to attain real strength. The addi-
tional resources which the United States can devote

to building this strength will be meaningless if
they are not combined with the resources of a
Western Europe which is organized on the prin-
ciple of unity. If Western Europe is to remain
divided and hence perpetually weak, then there
may have to be a basic shift in United States policy.
I hope and believe that this necessity will be spared
us. But it would be foolish not to recognize the
gravity of the issues which now test the North
Atlantic Organization.

THE AMERICAS

In the Americas also, a testing is in process.
This hemisphere has been relatively free from
strife because there has been respect for the princi-
])les which, 130 years ago, were laid down by
Pi'esident Monroe and the great leaders in other
American States. There were two basic princi-
ples, the first being that the American States
would not tolerate an expansion in this hemisphere
of the colonial domains of the European powers.
The second was that they would not tolerate the
extension to this hemisphere of the political sys-
tem of any despotic European power.

These principles have been embodied in various
multilateral treaties and declarations of the Amer-
ican States.

At the Tenth Inter- American Conference, held
at Caracas, Venezuela, last March, it became the
unpleasant duty of the American States to declare
that if international communism gained control of
the political institutions of any American State,
that would threaten all the American States and
endanger the peace.

Only one of the American States voted against
that resolution. That was Guatemala. Subse-
quently, [the Communists shipped to Guatemala,
from behmd fHe Iron Curtain, a large amount of
munitions of war. This was done surreptitiously
through the use of false manifests and false clear-
ances. '^

It is obvious that the alien intervention which
led to the Declaration of Caracas, has become
more pronounced and the subserviency of one of
the American States to alien despotism has been
increased.

Efforts are being made to obscure this very seri-
ous problem. It is alleged that the real concern
of the United States in Guatemala is not interna-
tional communism but the protection of United
States investments. Several months ago this Gov-
ernment suggested that the dispute between the
Guatemalan Government and the United Fruit
Com]>an3r be submitted to an international court
of arbitration. We hope that that suggestion wnll
be accepted by the Guatemalan Government.
However, let me emphasize this. If the problem
of United States investors in Guatemala were to
be solved tomorrow to the entire satisfaction of
all parties, the attitude of the United States Gov-

938

Department of State Bulletin

ernment with respect to the dangers of Communist
penetration in this hemisphere — and in Guatemala
in particular — would remain precisely the same.

I hope that the Organization of American States
will be able to help the people of Guatemala to rid
themselves of the malignant force which has seized
on them. As a member of this inter-American
organization, the United States inevitably takes a
sympathetic interest in the courageous efforts of
Guatemalans in all walks of life to ward off Com-
munist attempts to destroy the freedom and inde-
pendence of Guatemala. If they do not succeed,
the whole body of the Organization of American
States may be corrupted and we shall see in the
American continents the same forces which have
brought war and captivity and misery to so many
hundreds and millions in Europe and Asia.

That is the evil design. I believe that it will
be thwarted by peaceful, collective processes. If
so, the Organization of American States will
attain a new stature and exert a new influence.
The American Republics will have shown that
diversity can unite so that it produces, not con-
fusion, but enlightened action.

The United States Attitude

Let me in conclusion say a word or two about
the basic attitude of my own countiy, its govern-
ment and its people, toward these international
problems.

We do not assume that we have any mandate
to run the world. Nothing indeed would be
less in keeping with our traditions and our ideals.

Those who conceived this Nation and brought it
to life breathed into it a sense of mission. That
mission has to show others, by conduct and ex-
ample, that a free society could produce good
fruits. That has been and still is our basic foreign
policy. Twice, during this generation, we have
departed from our tradition by developing vast
military power and using it abroad. Our sea, air,
and land forces were spread over the surface of
much of the globe. In both cases, as soon as the

common peril was ended, we brought our forces
home, and we largely dismantled our military
establishment. We wanted to concentrate upon
our own affairs.

We now see that, under modern conditions,
interdependence is not the exception but the rule.
We recognize that we have a measure of power
whicli carries with it certain responsibilities. We
are basically a religious people, who believe in the
brotherhood of man and in the need to practice
the Golden Rule. That leads us to be willing
to help otliers to gain the conditions of security
which will help them to realize ideals which they
have in common with us.

To say that, liowever, is far short of saying
that the United States has a responsibility
for all that takes place throughout the world.
We do not accept the view that whenever there
is trouble anywhere, that is the fault of the United
States and we must quickly fix it.

The United States does not believe that it can
alone solve problems elsewhere. The possibilities
of solution lie primarily with the peoples directly
concerned. It sometimes seems that others de-
liberately indulge themselves in irresponsible con-
duct on the theory that the United States will
prevent this having serious consequences. That is
dangerous business.

The role of the United States is often miscon-
ceived. This is, perhaps, inevitable. It is not
readily understood that a nation should take so
enlightened a view of its own self-interest that it
does much for others without seeking for itself
any extension of its political power or national
domain. Our motives are sometimes openly sus-
pected. That makes it hard for us here at home
to pursue a steady course. However, I hope and
believe that we shall continue in our traditional
way. None need fear that we shall develop an un-
healthy lust for power. Also, I believe, we shall
persist in helping others to help themselves gain
peace and security and better standards of life in
larger freedom.

June 27, 1954

939

U. S. Views on Communist Proposals at Geneva

Following are the texts of two statements made
hy Under Secretary Sjnith at the Geneva Confer-
ence, one at the thirteenth plenary session on
Korea, June 5, and the other at the sixth plenary
session on Indochina, June 9, together with a docu-
ment relating to the Neutral Nations Supervisory
Commission in Korea to which Mr. Smith made
reference in his Jv/ne 9 statement.

STATEMENT ON KOREA, JUNE 5

Some of my colleagues have spoken with great
feeling this afternoon, as indeed the importance of
the occasion warrants. As I am, I hope, the last
speaker, I will exercise restraint in deference to
the important statements which have been made,
as well as to those who have made them.

In the first place, it is true, as Mr. Nam II states,
that the North Korean regime on April 27 made
certain proposals. They proposed the establish-
ment of an all-Korean commission which would
have the power to draw up an all-Korean elec-
tion law and to establish conditions for the elec-
tions throughout Korea. Apparently, as an after-
thought, because they wished to throw over this
proposal the cloak of international participation
in the conduct of Korean elections, they suggested
the establishment of a "neutral nations supervisory
commission" to assist the all-Korean commission.
Mr. Molotov today has spoken of an "all-Korean
body" and recommended it to us. The composi-
tion and tasks of this body, he says, shall be the
subject of examination. He has also referred to
and recommended to us an appropriate interna-
tional commission to supervise the holding of free
all-Korean elections. The composition of this su-
pervisory commission, he says, shall be examined
further.

Most of the delegations in this room have al-
ready pointed out quite clearly the character of
such proposals. I should like to address myself
to the first because its character will indicate the
character of the second. Our Communist col-
leagues undertake to convince us that a commis-

sion of this composition might perform an honest
and impartial duty in conducting free elections in
Korea. The regrettable fact is that the Commu-
nist proposal is designed to establish a kind of
supergovermnent in which the Communists would
have the power actually to frustrate any efforts
to achieve honest elections.

As has been many times pointed out, a spurious
commission of this kind would consist of equal
numbers from North and South Korea, although
the relative di /Terence in population has also been
pointed out many times. This commission would
also, I understand, have membership of so-called
"social organizations" — a concept with which we
have had unfortunate experience in the past, when
efforts were made to unify Korea in the early days
after the war. This commission is also, I should
judge by previous proposals, to have the power to
suppress so-called "terrorist groups," which we
know, unfortunately, by experience is the Commu-
nist name for any group that opposes them. A
most familiar and completely significant feature is
that our Communist colleagues insist that the com-
mission can operate only by agreement; that is,
the commission will operate only if the Commu-
nists want to agree, and, of course, they will only
agree on their own terms. And this is what we
have known for years as the principle of unanim-
ity, or the "built-in veto."

It is to assist this kind of commission that Mr.
Chou En-lai has felt himself obliged to suggest a
so-called "neutral nations supervisory commis-
sion." Mr. Chou En-lai admitted the need for in-
ternational participation, and then he made a pro-
posal for international supervision that I regret
to say seems to me to be completely fraudulent.
His proposal is fraudulent because it pretends to
establish an international body which we are to
assume would have some authority and which
could assure honest elections. As a matter of fact,
such a body could do absolutely nothing, so long
as the control of the entire election procedure was
in the all-Korean commission, in which the Com-
munists have their what I have called "built-in
veto."

940

Deparfmenf of S/afe Bulletin

There is another spurious aspect to this so-called
neutral nations supervisory commission. If our
Communist colleagues were really sincere about
impartial supervision, there is no reason in this
world why they could not accept a representative
United Nations commission for that task. This
they have categorically and repeatedly rejected,
and we can only assume that they intend to per-
petuate their own concept of a subservient interna-
tional body. The name that they use, "neutral na-
tions supervisory commission," is quite enough to
convince most of us what they have in mind.
That name, you will recall, is the name of a body
established in the Korean Armistice Agreement.
In fact, as Mr. Chou En-lai said today, "Since an
international organization such as the Neutral
Nations Supervisory Commission is able to super-
vise implementation of the Korean Armistice
Agreement, there is no reason whatsoever why it
cannot carry out appropriate supervision over the
free elections throughout Korea."

The reason I have asked you to examine this
proposal with me is because the bitter experience
we have had with such a body during the Korean
Armistice has given us a lesson which we will not
soon forget. I have given evidence on this ex-
perience in restricted session. Mr. Nam Il's and
Mr. Chou En-lai's remarks require me to testify
in this plenary meeting, and it will be profitable
for all of us who are not blinded by political
prejudice.

Let's take a moment to examine our past and
present experience with what we, of the United
Nations, hopefully accepted as a so-called "neu-
tral" commission set up by the Korean Armistice.
That commission, you will all recall, consists of
the representatives of Switzerland and Sweden,
countries whose impartiality and neutrality can-
not well be challenged, and of Poland and Czecho-
slovakia, Soviet-satellite countries which are neu-
tral only in the technical sense of nonbelligerency
and which have certainly not shown themselves to
be impartial. The Communist members of this
commission have consistently prevented the com-
mission from carrying out its assigned function.
As a result of this obstruction the Communist side
has been able to violate with impunity the provi-
sions of the Armistice. At this very time as we
sit here in Geneva, the aggressors in Korea are
bringing in arms and reinforcements to North
Korea imder conditions strictly prohibited by the
Armistice, and the Supervisory Commission is im-
potent to check these violations because the Com-
munist members of the commission refuse to
permit the commission to act.

The situation has become so intolerable that the
Swiss and Swedish representatives have re-
peatedly protested in writing. In these protests,
which have already been made public, they have
exposed the arbitrary refusal of the Communist
members to permit any activity by the two genu-
inely neutral members to carry out the solemn

obligation which they assumed when they under-
took their great task. I think it is worth while
to review some of these reports.

In a letter of May 4, 1954, the Swedish and Swiss
members of the Commission, General Mohn and
General Gross, honorable and able officers, stated
that "the operations of this commission were ham-
pered by the fact that in many instances the vote
of its four members was found to be equally di-
vided, resulting in a deadlock." Then they said,
"the control activities of the fixed neutral nations
inspection teams in the territory under the military
control of the Korean People's Army and the
Chinese People's Volunteers are not being carried
out satisfactorily and in full accoi'd with the spirit
of the Armistice Agreement, owing to the re-
stricted practices imposed on the activities of the
teams by their Czechoslovak and Polish members."

Again, in a letter of May 7, 1954, General Mohn
and General Gross said that "all efforts under-
taken by the Swedish and Swiss members of the
inspection teams in order to increase the scope and
the frequency of the spot check controls have been
constantly and persistently frustrated."

To counteract these honest and impartial state-
ments, as I have said, by the representatives of the
states whose neutrality cannot be challenged, al-
legations have been made that the United Nations
Command has repeatedly violated the Armistice.
These allegations have been made formally and
in writing by the Czech and Polish members of
the Neutral Nations Supervisory Commission.
Some of them have been repeated here in Geneva.
I should like to read you the reply of the Swedish
and Swiss members of the Commission to these
allegations. In a letter of May 4, 1954, General
Mohn and General Gross, the Swedish and Swiss
members, wrote to the Military Armistice Commis-
sion as follows :

These are some of the comments the Swedish and Swiss
members want to present in order to refute allegations
which they consider to be a tissue of malicious fabrica-
tions, gratuitous distortions, misleading half-truths, and
delusive insinuations without foundation in reality. The
methods resorted to consist largely in isolating facts and
figures from their proper context and in making sweeping
generalizations on the basis of premises thus distorted.

There is no denying that the United Nations Command
has laid itself wide open to inspection and observation
by the Neutral Nations Inspection Teams and has never
attempted to conceal anything from the Neutral Nations
Supervisory Commission, not even its mistakes and its
clerical shortcomings. There is no evidence that the
United Nations Command side intentionally or even in-
advertently had violated those provisions of the Armistice
Agreement, the application of which is the concern of
the Neutral Nations Supervisory Commission. As far as
the Swedish and Swiss memliers have been able to find
the United Nations Command has loyally and sincerely
abided by both the letter and the spirit of the Armistice
Agreement.

The Neutral Nations Supervisory Commission
in Korea, which is a pattern of what we have been

June 21, 1954

941

offered today, has been completely ineffective, de-
spite the fact that it had clear and detailed terms
of reference. Its effectiveness depended on Com-
munist good faith that has been lacking. Under
such circumstances, we are forced to the conclusion
that this sort of a supervisory commission means,
at best, no supervision at all.

Mr. ChaiiTnan, words like "free elections" and
"unification" mean nothing whatever if there is
no meeting of minds. The people of Korea and
the peoples of the world will not be satisfied with
empty words. They want to know whether the
Communists are in fact willing to agree to the
necessary steps, procedures, and instrumentalities
which would assure the concepts like "free elec-
tions" have true meaning and assure that they can
be realized for the Korean people. This can be
realized only if the Communists are willing to
abandon their insistence on a form of organization
which provides an automatic veto. Our objective,
as Mr. Chou En-lai has said, are genuinely free
elections held under conditions of genuine free-
dom. But, I don't think he means the same things
as I mean when he says those words !

Genuinely free elections in Korea can indeed be
assured if the elections are placed under the con-
trol and supervision of the United Nations. The
United Nations has the competence, the experi-
ence, the authority, the impartiality, and the fa-
cilities to perform this task. They could never
take place under the formula proposed by Mr.
Nam II. The vast majority of us represented here
know what really free, uncoerced elections are,
and we are not to be deluded.

I am glad that Mr. Nam U and Mr. Chou En-lai,
and finally Mr. Molotov, have made the issue so
crystal clear. I believe it will be equally clear to
world public opinion, and in so far as my delega-
tion is concerned, we are quite prepared to rest
the case of the United Nations before the bar of
world opinion, on the statements which our Com-
munist colleagues have made today and on those
which I and my colleagues have made at this and
our previous plenary sessions.

STATEMENT ON INDOCHINA, JUNE 9

Press release 315 dated June 10

As I listened yesterday to Mr. IMolotov's state-
ment and to that of Mr. Chou En-lai today, I
felt a disappointment— shared, I am sure, by
other delegations — at their unconstructive char-
acter. I had hoped for some definite response to
our efforts toward compromise on basic issues.
Since this has not been forthcoming and since
we have had only a reiteration of deceptive for-
mulas which have been given us on a number of
previous occasions, I feel that it is necessary now
for me to comment on the charges reiterated on
several occasions by Afr. Molotov and more intem-

perately repeated by Mr. Dong and Mr. Chou En-
lai of aggressive designs and imperialistic inten-
tions and deliberate deceptions and obstructions on
the part of the United States and of our friends
and allies.

These charges are part of a familiar pattern.
I'm quite sure that Mr. Molotov, and probably
Mr. Chou En-lai, do not themselves actually be-
lieve that they will be taken seriously, except
possibly in those countries where the instrumental-
ities of government are devoted to the suppression
of the distribution of accurate and unbiased
information.

I would assume, therefore, that Mr. Molotov
was not actually speaking to us, but rather the
regimented audience in Europe and Asia which
accepts the Cominform line. I believe therefore
that it is sufficient for me, in reply, to say that the
record of my country during and since the Second
World War is well known to the whole free world.
We are quite willing to have our present and our
future intentions judged from this record, and I
am sure that the confidence of our associates will
not be diminished and that of less fortunate
people, if they were permitted to examine the
record, would be restored.

We sometimes overlook the fact that we know
a great deal also about the record of the Soviet
Union during this same period, and, in judging
the present and future intentions of the Com-
munist states and in assessing the validity of their
proposals, I suggest we can learn more from re-
viewing this record than from such statements as
those which our Communist colleagues have per-
mitted themselves to make. For example, when
Mr. Molotov and Mr. Chou En-lai speak of the
national liberation movements of the peoples of
Asia, I am at once moved to recall what Mr.
Molotov and the Government he has so long rep-
resented have actually done to affect the national
aspirations of various smaller nations.

I would therefore remind you all of the mutual
assistance treaties which the Soviet Union made
in 1939 with Estonia, Latvia, and Lithuania. On
October 31, 1939, Mr. Molotov, as reported in the
Soviet press, said of these treaties that they "in
no way imply any interference on the part of the
Soviet LTnion in the affairs of Estonia, Latvia or
Lithuania. . . . On the contrary, all of these
pacts of mutual assistance strictly stipulate the
inviolability of the sovereignty of the signatory
states and the principle of noninterference in each
other's affairs. . . . We stand for the scrupulous
and punctilious observanc« of the pacts on the
basis of complete reciprocity, and we declare that
all the nonsensical talk about the sovietization of
the Baltic countries is only to the interest of our
common enemies and of all anti-Soviet provoca-
teurs."

The fate which overtook Estonia, Latvia, and
Lithuania very soon after this verbally admirable

942

Department of State Bulletin

statement by our eminent colleague is well known
to all of us.

Have any of my colleagues forgotten the pact
between the Soviet Union and Nazi Germany dated
August 23, 1939? 1 Probably at one time Mr.
Molotov considered this pact a diplomatic achieve-
ment. But I'm sure he must later have shared
with the rest of us the bitter conviction that it
paved the way first for the Nazi victories of the
early years of World War II and then for the
Nazi assault on the Soviet Union which cost the
grave, long-suffering, and wholly admirable Rus-
sian people so many millions of lives and such
widespread destruction.

I have examined this pact and particularly the
secret annex thereto, which has since been revealed,
and I remain deeply impressed by the following
words from the second numbered paragraph of
this annex to which Mr. Molotov appended his
signature on August 23, 1939.

They read as follows :

The question of whether the Interests of both parties
make desirable the niaintenanee of an independent Polish
state and how such state should be bounded can only be
definitely determined in the course of further political
developments. In any event both Governments will re-
solve this question by means of a friendly agreement.

No attempts to justify this international im-
morality on the ground of exigencies existing at
the time can possibly be acceptable. And read in
the light of this paragraph, tlie history of Eastern
Europe between 1939, when Poland was destroyed,
and 1948, when Czechoslovakia lost her proud
place as a free nation, becomes unmistakably clear.
The national aspirations of small, weak countries
are to be subject to what is called the "interests" of
large aggressive powers with designs of world
domination. What took place in Poland, Latvia,
Lithuania, Estonia, Hungary, Rumania, Bulgaria,
Albania, and Czechoslovakia constitutes in each
case a chapter in the Soviet record.

It now begins to appear that one of the next
chapters in this record may reveal an intention to
subordinate the national aspirations of the people
of Indochina to what has been termed the "inter-
ests of both parties" as they may be represented by
the treaty relationship between the Soviet Union
and Communist China.

I should like at this point to bring to your at-
tention another interesting quotation which will
be familiar to Mr. Chou En-lai : "Truce is the mil-
itary counterpart of the political tactic of coalition
government. It is the means to an end, not the
ultimate objective." In these words our colleague,
the Foreign Minister of Communist China, gave
to the familiar military truce a meaning entirely
new in the history of war. That meaning was
spelled out in a war of aggression in Korea and the

^Nazi-Soviet Relations 1939-10^1 (Department of State
publication 3023), p. 76.

same concept hangs over the battlefields of Indo-
china and it will be understood that it is for this
reason, among others, that the majority of us
have insisted on definite understandings regard-
ing some of the vital issues that we are considering
in our etTort to bring peace in Southeast Asia.

Our objective and our hope are peace and secur-
ity. Mr. Molotov himself will recall that at our
first formal conference in Moscow in 194G I stated
that the vital question in the mind of the entire
free world was, "How much further is the Soviet
Union going to go?"

I saicl also at that time that, if the aggressive
expansionism which the Soviet Union had already
demonstrated were to continue, the free world,
purely in self-defense, would if necessary draw
closer together.

The repressive effect of Soviet armed might was
not so soon felt in South or Southeast Asia as it
was in Eastern Europe. Consequently, therefore,
we saw, since the end of the last war, the peoples of
this area make giant strides in attaining inde-
pendence and the control of their own destinies.
Burma, Ceylon, India, Indonesia, Pakistan, and
the Philippines have taken their places in the
family of free nations. These developments have '
been viewed with the greatest satisfaction by the
people of my country.

Cambodia, Laos, and Viet-Nam have more re-
cently joinecl the other free South and Southeast
Asian nations in the achievement of independence,
and it is our sincere hope that they will attain peace
and security based on a true respect for the na-
tional aspirations of their peoples. Those na-
tional aspirations should not be subordinated, as
has occurred in the case of the unfortunate nations
mentioned at the beginning of this statement, to
the interests of a large aggressive power or powers.

The Soviet Union today is the great Asian im-
perial power, holding vast colonial territories in
the Caucasus and Central Asia. The solicitude I
have heard expressed by Mr. Molotov for the
people of Southeast Asia apparently does not ex-
tend toward the Armenians, the Kazakhs, Mongols,
and I think it might be worth the while of all my
colleagues to recall the circumstances under which
the former small independent state of Tanatuva
disappeared completely from the map.

I might say also to Mr. Pham Van Dong that
accusations against the U.S. of aggressive inten-
tions and imperialist designs come rather strangely
from his lips when we recall that the troops of
the Viet Minh have invaded the peaceful coun-
tries of Cambodia and Laos and have spread death
and destruction there.

But, Mr. Chairman and gentlemen, I intensely
dislike these charges and countercharges. I have,
so far, refrained from replying myself because of
the really serious and important business facing
this conference.

Having now recorded my testimony with regard
to the matter of imperialism, I should like to re-

June 2 J, 7954

943

turn to consideration of the specific proposals be-
fore us. At this moment we are still con-
fronted with three important issues which have
been debated at length at a number of meetings
and without result. The first of these is, as I and
others of my colleagues said yesterday afternoon,
the special nature of the problem existing in Laos
and Cambodia.

I believe that both Mr. Eden and Mr. Bidault
unanswerably demonstrated the necessity of sepa-
rate treatment for those two countries where peace
would automatically be restored by the withdrawal
of the invading Viet Minh force.

The second issue is that of the powers of the
international supervisory commission for Viet-
Nam. This commission must, obviously, have the
authority and facilities to settle any problems or
differences which cannot be adjusted by the joint
commissions of the belligerents, and logically,
therefore, its decisions must be binding on those
joint commissions.

The third vital issue is the composition of the
international supervisory commission. As I and
othei-s of us said before, a commission containing
states unable to meet the test of impartiality — that
is, a commission the counterpart of that set up in
Korea, on which Communist state members have
been able by veto to prevent effective supervision —
is obviously an unsatisfactory and an unacceptable
proposal. Yesterday the representative of the
United Kingdom proposed the Colombo powers.
I welcomed that proposal. This afternoon the
representative of Viet-Nam proposed the U.N.
That would be acceptable.

Both are reasonable proposals. The proposal
of the Soviet Union, from my point of view, and
I think from that of the majority of my colleagues,
is not reasonable.

I am obliged to state that the Soviet, the
Chinese Communist, and the Viet Minh delega-
tions have, so far, shown no signs of willingness
to resolve these issues on any reasonable basis
which could be acceptable to this conference, or
which would inspire and insure the return of peace
to Indochina. I hope that I am wrong, but the
negative results of our last meeting seem to sup-
port this conclusion.

EXCERPTS FROM MAY 4 MEMORANDUM TO
KOREAN MILITARY ARMISTICE COMMISSION

The Department of Defense on May 29 released
two documents relating to the Neutral Nations
Supervisory Commission {NNSC) in Korea:
{1) a memorandum dated April 30 from the Polish
and Czechoslovak members of the NNSC to the
Military Armistice Commission^ and {2) a memo-
randum commenting on the Polish and Czecho-
slovak communication, sent to the Military Armi-
stice Commission on May 4- hy the Swedish and

Swiss members of the NNSC Printed below are
excerpts from the latter document.

On 29 April the Polish Member of the Neutral
Nations Supervisory Commission submitted for
the consideration of the Commission, at its 124th
meeting, a draft to a report to be directed to the
Military Armistice Commission. The Swedish
and the Swiss Members of the Neutral Nations
Supervisory Commission rejected this draft in its
entirety. The Czechoslovak and Polish Members
thereupon decided to forward the document to the
Military Armistice Commission in their own name.

The Czechoslovak and Polish Members are, of
course, perfectly free to convey to the Military
Armistice Commission whatever views and opin-
ions they hold. As this particular document claims
to be based, however, on facts and figures collected
by the Neutral Nations Inspection Teams, the
Swedish and Swiss Members feel called upon to
present a few comments to the report submitted by
the Czechoslovak and Polish Members to the Mili-
tary Armistice Commission.

In the introductory part of their report the
Czechoslovak and Polish Members charge the
United Nations Command side with (a) obstruct-
ing and restricting the activities of the Neutral
Nations Inspection Teams, (b) introducing mili-
tary reinforcements into Korea, (c) violating the
provisions of the Armistice Agreement under
which replacements of combat materiel shall be
made piece-for-piece of the same effectiveness and
the same types.

The contention that the United Nations Com-
mand side has obstructed and restricted the ac-
tivities of the Neutral Nations Inspection Teams
is utterly ridiculous. The United Nations Com-
mand has from the outset wholeheartedly and un-
reservedly cooperated with the Neutral Nations
Supervisory Commission and its Inspection
Teams. Errors and mistakes have admittedly oc-
curred and there have also been cases of omission,]
but never has any intention of circumventing'
the provisions of the Armistice Agreement been
proved. The Neutral Nations Inspection Teams
have been in the unique position of being able to
check on the movements of goods amounting to
many millions of tons in the sea-ports of Pusan,
Inchon and Kunsan, and on the movements of
aircraft amounting to many thousands of planes.
With such a considerable turnover, it is obvious]
that some allowance must be made for discrepan-
cies and inaccuracies.

There is no evidence whatsoever to show thatl
the United Nations Command side has increased.!

' The Department of Defense release also included two!
documents previously made public at Panmunjom by thel
United Nations Command : A letter from Maj. Gen. J. K.|
Lacey of the Unc dated April 15 (for text, see BulletinI
of May 3, 1954, p. 689) and a memorandum of May 4'
from the Swedish and Swiss members of the Nnsc to the
senior member of the Military Armistice Commission.

944

Deparfmenf of State Bulletin

its combat strength in Korea since the Armistice
Agreement came into force. On the contrary, the
Swedish and Swiss Members concluded, in their
evakiation on rotation of military personnel and
replacement of combat materiel for the months of
October-November 1953, that the United Nations
Command side had considerably reduced its over-
all combat strength during this period. The same
trend has prevailed in the following months. In
this connection it should be noted that, contrary
to the assertion of the Czechoslovak and Polish
Members, the Neutral Nations Supervisory Com-
mission as such has not submitted any evaluation
report for the months of October-November 1953.

The charge that the United Nations Command
side has violated the provisions of the Armistice
Agreeiuent relating to the replacement of combat
materiel piece-for-piece of the same effectiveness
and of the same type is merely a product of the
imagination of the Czechoslovak and Polish Mem-
bers. Their way of reasoning may be illustrated
by a statement in the evaluation of rotation of
military personnel and replacement of combat
materiel which they submitted to the Military
Armistice Commission for the months of October-
November 1953. The statement relates to the re-
placement of training aircraft designated as T-33
which, besides, is no combat aircraft. The conten-
tion of the Czechoslovak and Polish Members is
that the United Nations Command side is violating
the provisions of the replacement piece-for-piece of
the same effectiveness and the same type by hav-
ing T-33's replaced by T-33A's. The absurdity
of this accusation appears from the fact that all
T-33's in South Korea are T-33A's. The Czecho-
slovak and Polish Members persist, however, in
yielding to the same misapprehensions with re-
gard to other types of aircraft.

In the first period after the signing of the Ar-
mistice Agreement the United Nations Command
side strictly reported types of combat aircraft as
required by the provisions of the Armistice Agree-
ment. Wlien the Neutral Nations Inspection
Teams started their control operations some three
weeks after the Armistice Agreement had been
signed, they also confined themselves to reporting
of types only of combat aircraft. Subsequently
they extended their reporting to include sub-types
(models) as well, and the United Nations Com-
mand side, for its part, adopted the same proce-
dure, although there was no obligation to do so
under the provisions of the Armistice Agreement.

The assertion of the Czechoslovak and Polish
Members that "the United Nations Command side
still refuses to report the sub-types of combat air-
craft" is therefore completely unfounded. This
assertion seems to be based on their ignorance of
the definition of the word "sub-type" which, con-
trary to their belief, has nothing to do with vary-
ing serial numbers of aircraft.

Due to the fact that, in the beginning, types
only, and no sub-types, were reported either by

the United Nations Command or the Neutral Na-
tions Inspection Teams, some doubts have arisen
with regard to some replacement figures. The
Czechoslovak and Polish Members bluntly infer,
for example, that the United Nations Command
side by 30 November 1953 had introduced four
more combat aircraft F-94 than it had shipped
out, and, in addition that F-94's had been re-
placed by F-94B's which they assumed to be an
improved version of the F-94. There are, how-
ever, two facts they omit to take into considera-
tion : (1) that before the Neutral Nations Inspec-
tion Teams started their control operations the
United Nations Command reported to have flown
out nine F-94's more than it had introduced and
thus even with due consideration for the figures
of the Neutral Nations Inspection Teams had
built up a credit of six F-94's by 30 November
1953 (one aircraft was missed in the counting of
the Czechoslovak and Polish Members) ; (2) that
there is no difference between the F-94 and the
F-94B and thus, in fact, all aircraft in this class
sliould be listed as F-94B. The conclusions of the
(Czechoslovak and Polish Members are therefore
fallacious and completely misleading.

The Czechoslovak and Polish Members quote
the definition agreed upon by the Military Armi-
stice Commission with regard to "combat aircraft"
as referred to by the Armistice Agreement. The
definition, of 28 November 1953, reads as follows :

(1) Aircraft which are designed to expend destructive
ordnance and which, even though not equipped with
weapons at a given time, can have weapons installed in
them at any time ; and (2) Aircraft designed for weather,
photography, and visual reconnaissance or tactical air
coordination.

The application of this definition on aircraft
in the territory under the military control of the
United Nations Command — as is well known not a
single aircraft has been reported as incoming or
outgoing in the territory under the military con-
trol of the Korean People's Army and the Chinese
People's Volunteers — has met with little diffi-
culties as far as the Neutral Nations Inspection
Teams are concerned. They were anyway in a
position to check on all incoming and outgoing
aircraft, both combat and non-combat, and as a
matter of routine they reported to the Neutral
Nations Supervisory (Commission, long before the
definition of combat aircraft was given, all train-
ing aircraft that came within the range of their
observations. No instructions to that effect had,
however, been issued.

The United Nations Command side, for its part,
never considered training aircraft to be combat
aircraft and therefore did not list them in the re-
[)orts which, under para. 13 of the Armistice
Agreement, the sides have to submit daily to the
Military Armistice Commission and to the Neu-
tral Nations Supervisory Commission. The
Swedish Member, although convinced personally
that training aircraft could not be considered as

June 21, 1954

945

coming under the definition of combat aircraft as
agreed upon by the Military Armistice Commis-
sion, followed up a suggestion once made by the
Polish Members and asked the United Nations
Command to clarify its position on the subject.
The reply reads as follows :

HEADQUARTERS
UNITED NATIONS COMMAND MILITARY ARMI-
STICE COMMISSION

April 10th ; 1954
Memorandum for: Major General Mohn, Senior Swedish
Delegate, NNSC.

1. Reference is made to your recent informal request on
why the TB-17, VB-17, T-33, TV-2, TBM-3R, and P2V
are not considered combat aircraft.

2. I have been instructed to inform you that

(a) The TB-17 and TB-2G are former World War II
bombers which have been stripped of their guns, bomb
racks, armor plate and other distinctive features of a
combat aircraft. These types of aircraft are now used
for utility and training flights. That is the reason they
have been designated by the letter "T" — for training.
(6) The VB-17, an old B-17, is also a former World
War II bomber which has been extensively modified for
personnel transport. Similar to the TB-17, it also has
been stripped of its armament. That is the reason it
has been designated the letter "V".

(c) The T-6 is an aircraft used extensively as a train-
ing plane for flight instruction and general utility fly-
ing. It contains no armor or armament. Similarly, it
has been designated by the letter "T" — for training.

(d) The TBM and the TBM-3R are former World War
II naval combat aircraft which have also been stripped
of armor and armament and are used as utility aircraft
for performing routine administrative missions and
cargo flights.

(e) The P2V is a patrol bomber stripped of armor and
armament and is used in Korea as a transport aircraft.
(/) The T-33 is an aircraft designed expressly for
training purpose? and is not designed to expend de-
structive ordnance. This airplane provides spaces for
instructor and student, dual control and carries no
armor. It is used for instruction and instrument
training.

(,0) The TV-2 closely resembles the T-33. It, too, is
designed for training and not designed to expend de-
structive ordnance. It provides spaces for pilot and
student, has no armor and is used for instruction and
instrument training.

3. None of these World War II aircraft could be con-
verted into combat aircraft without extensive modifica-
tion, and even were an attempt made to so modify them
they would be completely obsolete for combat purposes.
As you know, the TV-2, T-33, and T-6 have never been
designed for combats.

4. You will note that the characteristics listed above are
not those of United Nations combat aircraft. Accord-
ingly, they are not reported as combat aircraft.

HOBABT HeWETT,

Brigadier General; VSA

Chief of Staff

These explanations fully confirm the views held
by the Swedish and Swiss Members on this matter.
Consequently, in their opinion the introduction
into South Korea of 177 training aircraft up to
15 April 1954, as claimed by the Czechoslovak
and Polish Members, is completely irrelevant to

the observation of the Armistice Agreement.
Moreover, it is remarkable that the Czechoslovak
and Polish Members fail to mention, in this con-
nection, that during the period under review, 164
training aircraft were flown out of South Korea.

The Czechoslovak and Polish Members comment
at great length on the question of disassembled
parts, dismantled parts and spare parts, overlook-
ing the fact that nowhere in the Armistice Agree-
ment is there put any restrictions on the introduc-
tion into Korea of such materiel. They also omit
mentioning that in this question the United Na-
tions Command side were willing to commit itself
beyond the obligations imposed by the Armistice
Agreement and that the negotiations on the matter
conducted within the Military Armistice Commis-
sion were kept in abeyance by the Korean People's
Army and Chinese People's Volunteers side.

The Armistice Agreement specifically provides
that combat materiel which is destroyed, damaged,
worn out, or used up during the period of the
Armistice may be replaced on the basis of piece-
for-piece of the same effectiveness and the same
type. It is obvious, therefore, that combat ma-
teriel may also be repaired on the spot by the use
of spare parts. It can be assumed that the United
Nations Command side disposes of a considerable
amount of combat materiel the refitting of which,
in as nnich as it is damaged or worn out during
tlie period of the Armistice, requires important
quantities of spare parts. The Czechoslovak and
Polish Members have produced no proof whatso-
ever to the effect that the United Nations Command
side has introduced dismantled parts of combat
materiel for assembling purposes. Their assertion
in this respect is again a gratuitous assumption
without foundation in fact. It is even surprising
tliat they are willing to display such ignorance
of military ordnance. No soldier in his sound
mind would infer that the United Nations Com-
mand is attempting to build up strength in the way
indicated by the Czechoslovak and Polish Mem-
bers.

The inanity of the accusations brought against
the United Nations Command side by the Czecho-
slovak and Polish Members can easily be exposed.
They charge that with spare parts introduced into
Korea the United Nations Command could assem-
ble guns and howitzers, machine guns, rocket
launchers and mortars, and in this way increase
their combat potential. Their allegation is par-
ticularly revealing with regard to machine guns
and mortars.

With regard to alleged "under-reporting" of
incoming combat materiel by the United Nations
Command, the Czechoslovak and Polish Members
have chosen a rather unfortunate example, claim-

946

Department of State Bulletin

ing tluit in January 1954 the Neutral Nations In-
spection Team at Pusan "found out" that ammuni-
tion introduced on board a LST No. 520 was four
times larger tlian had been notified by the local
authorities. This information is incorrect. The
Neutral Nations Inspection Team was notified that
106,617 pieces of ammunition in 23 lots were to be
introduced at Pusan. When proceeding with the
inspection a further lot of 2,655 pieces was made
available for examination. Even with a stretch
of imagination it is hard to realize how the figure
of 109,272 could be considered four times as large
as 106,617.

In respect to "overrepoi'ting" of outgoing com-
bat materiel by the United Nations Command side,
the Czechoslovak and Polish Members claim that
in October 1953, 145 LVT-M4's and LVT-M5's
were rejiorted to have been shipped out from
Pusan, whereas the Neutral Nations Inspection
Team only found 74. A special investigation car-
ried out at Pusan revealed, however, that the
Team, for its part, had neglected to report some
of the armoured vehicles involved and reported
others under a wrong nomenclature. Unfortu-
nately, other cases of serious misreporting have
occurred and it would be most unfair to blame the
United Nations Command for such errors.

These are some of the comments the Swedish
and Swiss Members want to present in order to
refute allegations which they consider to be a tissue
of malicious fabrications, gratuitous distortions,
misleading half-truths, and delusive insinuations
without foundation in reality. The methods re-
sorted to consist largely in isolating facts and fig-
ures from their proper context and in making
sweeping generalizations on the basis of premises
thus distorted.

There is no denying that the United Nations
Command has laid itself wide open to inspection
and observation by the Neutral Nations Inspec-
tion Teams and has never attempted to conceal
anything from the Neutral Nations Supervisory
Conmiission, not even its mistakes and clerical
shortcomings. There is no evidence that the
United Nations Command side intentionally or
even inadvertently had violated those provisions
of the Armistice Agreement, the application of
which is the concern of the Neutral Nations Su-
pervisory Commission. As far as the Swedish
and Swiss Members have been able to find the
United Nations Command has loyally and sin-
cerely abided by both the letter and the spirit of
the Armistice Agreement.

Paul Mohn

Major General
Swedish Member of

NNSC

Ernst Gross

Brigadier General

Swiss Member of

NNSC

Negotiations at Geneva

News Conference Statements hy Secretary DiUlea

Press releases 309 and 313 dated June 8

KOREAN PHASE

At his news conference, Secretary Dulles was
a^ked whether he had given up hope of reaching
an acceptaile solution of the Korean question at
Geneva and how much longer he thought the mat-
ter should ie discussed. The Secretary replied:

I think that the talks about Korea are pretty
close to the end of their useful life. It is not pos-
sible to express that in terms of days or hours,
because of the fact that talks on Korea are inter-
spersed with talks about Indochina, and there is
often a recess of several days during which there
is no talk at all about Korea.

I believe that there was a talk about Korea per-
haps this morning. I know one was planned. I
have not yet heard whether it was held or what
the result was. But the impression we have here
is that that situation has been pretty well talked
out. Whatever the date may be for winding up
those talks, which, as I say, can't be forecast be-
cause of the fact that they are dealing with two
problems intermittently, I would say that the
substance of the problem has been fully explored.
Unless, therefore, there is a radical change in the
Communist position, it is not fruitful to go on
discussing that problem much more.

INDOCHINA PHASE

In reply to a question of his assessment of the
Geneva talks concerning Indochina to date, Mr.
Dulles said :

The primary responsibility in those negotiations
is being carried, of course, by the French delega-
tion in association with the delegations of the
three Associated States of Indochina, Viet-Nam,
Laos, and Cambodia.

The United States is playing primarily the role
of a friend which gives advice when it is asked
for, and of course we have a very deep hope that
the result will be one which will maintain the
genuine independence of the entire area and bring
about a cessation of the fighting.

Whether that result is obtainable or not is of
course problematic. It seems that the Communist
forces in Indochina are intensifying their activ-
ities. They have done so ever since the proposal
for peace in Indochina, which was taken at the
Berlin Conference. There has been, I think, a
deliberate dragging out of the negotiations at
Geneva while the Communist military effort has
been stepped up in Indochina itself. The fact
that under these circumstances the Communists

June 27, 7954

947

are dragging their feet on peace and intensifying
their efforts for war is a commentary upon the
general attitude of the Communists and gives a
lie, I think, to their greatly professed love for
peace.

Asked what^ in his view, was the lest way to
meet a situation where the Communists were in-
tensifying xoar and dragging their feet on peace,
Mr. Dulles said:

The United States has made a number of sug-
gestions which all fit into a common and consis-
tent pattern.

The first suggestion of that order was, as I
have recalled to you, the proposal that the Presi-
dent made over a year ago in his April 16 address
when he proposed that there should be united
action in relation to Indochina. That suggestion
was not adopted, although, as I mentioned here,
I think, in my last press conference, it was fol-
lowed up in private negotiations by the United
States Government.^

I renewed the same suggestion in my March 29,
1954, speech,^ and the position of the United States
with respect to that matter still stands, subject,
of course, to the possibility that a time may come
when that particular suggestion is no longer a
practical one. But it has been a practical one
ever since President Eisenhower first made it, and
I believe it is still a practical one.

Asked whether the alternative, should the plan
for united action not become practical, might
imply the United States'' dealing with this situa-
tion singlehandedly or unilaterally, Mr. Dulles
replied:

No. The United States has no intention of
dealing with the Indochina situation unilaterally,
certainly not unless the whole nature of the
aggression should change.

'■'■What change?^'' Mr. Dulles was asked. He
replied:

Well, if there should be a resumption by Com-
munist China of open armed aggression in that
area or in any other area of the Far East that
might create a new situation.

Asked how long he felt the United States and
other free nations should continue to sit at Geneva
in a sincere effort to negotiate while the Commu-
nists dragged their feet at Geneva and intensified
the war in Indochina, Mr. Dulles said:

As I pointed out earlier, the primary responsi-
bility in that respect has to be assumed by the
countries that are carrying the principal burden
of the fighting in the area, which on our side are

* Bulletin of June 7, p. 862.
' lUd., Apr. 12, p. 539.

948

France and Viet-Nam. They are recognized by
us as having a primacy in this matter. It would
be their decision in this respect which would be
controlling. I would not want to attempt to es-
tablish what I thought should be their policy in
this matter.

Mr. Dulles loas asked what the objectives of
united action would be — would it m.ean interven-
tion, the holding of a special line in Indochina,
or some other objective? The Secretary replied:

It would obviously have an objective. The ob-
jective would be to retain in friendly hands as
much as possible of the Southeast Asian penin-
sular and island area. Now the practicability
varies from time to time. "WTiat was practical a
year ago is less practical today. The situation
has, I am afraid, been deteriorating.

Mr. Dulles was asked what progress had been
made toward general acceptance of the united ac-
tion idea. He replied:

I would say that progress has been made only
in this sense, that two of the conditions precedent
have been advanced. Namely, considerable fur-
ther progress, I think, has been made in clarifying
the prospective status of the states of Viet-Nam,
Laos, and Cambodia as regards their complete
independence. And, also, the fact that on the
application of Thailand the Security Council
voted 10 to 1 to put that on its agenda, and to begin
to get into the matter. That, again, is a move-
ment on one of the fronts which we have felt to be
indispensable in relation to united action. In
those two respects some progress has been made.

The Secretary was asked about the progress of
the Washington military staff talks and about
parallel talks with Asian countries. He replied:

We have had a series of talks the first of which
I think took place here in Washington with the
representatives of the Government of Thailand
with reference to their military position and steps
which might be taken to strengthen it. Then
Secretary Wilson, when he was in Manila a few
days ago, had a series of talks, himself and his
military advisers, with the representatives of the
Philippine General Staff.

The talks that are going on here in Washington
with the United Kingdom, France, Austra.lia, and
New Zealand are the same type of talks designed to
gather together military information, to assess
military possibilities so that if and when it is nec-
essary to take political decisions there will be
available at hand the military elements of the
problem. I expect a further visit to this country
of the Philippine Chief of Staff and possibly a
similar visit from Thailand. We are trying to
keep in as close touch as we can with the military

Deparimeni of State Bulletin

position, as I say, because that has to be taken into
account in reaching political decisions.

Asked about reports that the Administration
might ask Congress to adopt some sort of resoht-
tion on the Indochina situation^ Mr. Dulles
replied:

There is no present plan for going to Congress
for any authority in this matter. As is well
known, the general scheme which the United
States has had for this area and which I have al-
ready described here, would, if it were imple-
mented, probably require congressional action.
But there has so far not been a sufficiently general
acceptance of the program to make it, as a matter
of practical politics, a question of going to
Congress.

Discussions Concerning Americans
Detained in Communist Cliina

Following are texts of statements issued at Ge-
neva on May 29 and June 5 hy the U. S. delegation
to the Geneva Conference:

STATEMENT OF MAY 29

The attention of the United States Delegation
has been drawn to news conferences held this week
by the press spokesman of the Chinese Communist
Delegation, at which the matter of American citi-
zens imprisoned in Communist China has been dis-
cussed.

The Chinese spokesman has acknowledged that
20 or 30 Americans are under arrest. He named
six of them.

Wliile this quasi-official confirmation of the lot
and whereabouts of these Americans is welcome,
the United States Delegation must point out that
it is tragically late in coming, and that the infor-
mation is woefully inadequate.

For four years, the United States Govenmient
has made persistent efforts to obtain information
about American citizens detained in China. Their
families have made similar attempts. Until now,
however, the Chinese Communist authorities have
failed even to acknowledge the inquiries addressed
to them, let alone provide the information
requested.

In most instances, the United States Govern-
ment and the families concerned have been unable
to find out whether these persons are alive or dead.
To cite one example: In 1952, an American mis-
sionary died in prison in Canton, as the result of
gross mistreatment. Not until six months later,
by roundabout ways, did word of his death reach
the outside world. There has not yet been an

June 27, 7954

302968—54 3

official communication about it from the Chinese
authorities.

The Chinese Communist press spokesman is re-
ported to have said that, in future, relatives will
be allowed to send letters to the Americans held in
prison. This, too, is welcome, and it is to be
hoped that other steps to improve their lot will
follow. But it must be pointed out that to receive
mail is an elementary privilege, which ought to
have been granted from the beginning.

The United States Government and people con-
tinue to be deeply concerned about the welfare of
those Americans, civilian and military, who have
been imprisoned by the Chinese Communist au-
thorities, or otherwise prevented from returning
to the United States. They continue to desire f ul 1
information as to their whereabouts and wellbeing.
The United States Government will continue to
make every feasible effort to bring about the re-
lease of these citizens.

The Chinese Communist spokesman also spoke
of Chinese students and other Chinese nationals
residing in the United States ; and, on this matter,
he made some statements that are without founda-
tion in fact, and others that constitute grave dis-
tortion of the facts.
Here are the facts :

Wlien the Communists by force of arms con-
quered mainland China, several thousand Chinese
students wei-e attending American schools and
universities. The overwhelming majority chose,
of their own free will, not to return to their home-
land.

A number, however, did wish to return to China.
Until the outbreak of the Korean war, and the
Chinese Communists' aggression in Korea, they
were permitted freely to do so ; in 1949 and 1950,
approximately 1,000 Chinese students departed
from the United States.

In June 1951 — under the authority of the Pass-
port Control Act of 1918 (as amended in 1941),
which authorized the President to control the de-
parture of aliens, and, subsequently, under Sec-
tion 215 (a) 1 of the Immigration and Nationality
Act of 1952, which superseded the Passport Act of
1918 — regulations were issued setting up controls
over the departure of certain foreign nationals
from the United States.

This was at a time when the United States was
serving as the United Nations command in Korea,
and these regulations were designed to protect the
security of the United States and its allies in that
war.

Since 1951, 434 Chinese students have applied
for exit permits. Of these, 314 have been per-
mitted to depart— 150 in 1951, 53 in 1952, 84 in
1953, 27 in 1954. For security reasons, exit per-
mits were temporarily denied the other 120.
(Since October, 1953, only four Chinese have been
denied permission to leave; the last refusal took
place in January, 1954.) The Attorney ^General

949

is now restudying the cases of these 120. It is
anticipated that many of thejn have by now
changed their minds; they have taken permanent
jobs and will no longer wish to leave the United
States. Those who do will have their status given
careful review.

It is to be emphasized that none of the Chinese
in the United States has been imprisoned, detained,
or mistreated. All have enjoyed, and enjoy, com-
plete freedom of movement ; they are free to com-
miuiicate with anyone and free to accept any
employment they choose. The sole restriction on
those denied permission to leave is that once every
three months they must report in writing to the
Immigration Office in the district in which they
reside their current address and occupation.

As of April 30, 1954, there were 5,242 Chinese
in the United States on student visas. Many of
these are now teaching or otherwise employed.
Since April, 1949, the United States Government
has given financial assistance to 3,642 Chinese stu-
dents in the United States — this with no strings
attached, so far as their departure from the United
States was concerned. This government aid was
in addition to substantial assistance Chinese stu-
dents received from private citizens and organi-
zations.

STATEMENT OF JUNE 5

Press release SOI dated June 5

In an effort to secure the release of United States
citizens at pi'esent imjirisoned or otherwise de-
tained in Communist China, U. Ale.xis Johnson,
American Ambassador to Czechoslovakia and a
member of the U.S. delegation at the Geneva Con-
ference, today accompanied Humjihrey Trevelyan,
British Charge d'Affaires at Peiping, to a meeting
with a member of the Chinese Communist delega-
tion.

As the United States does not recognize Com-
munist China, the British Mission at Peiiiing has
made many representations in behalf of the im-
prisoned or detained Americans, none of which
has been acted upon. At Geneva Mr. Trevelyan
has conferred with members of the Chinese Com-
munist delegation on this problem. In the course
of these conversations, the Chinese suggested to
him that progress in this matter could only be
facilitated through direct contact with a member
of the U. S. delegation.

The United States Government has made the
decision to authorize informal United States par-
ticipation in this meeting because of its obligation
to protect the welfare of its citizens. It intends
to leave no stone unturned in its endeavors to se-
cure the release of American citizens whom the
Chinese Communists hold. At least 32 American
civilians are known to be in prison and others have
been unable to secure exit permits. There are also

Air Force and other military personnel who are
believed to be under detention.

Unitetl States participation in these conversa-
tions in no way implies United States accordance
with any measure of diplomatic recognition to the
Red Chinese regime.

U.S. Policy on Guatemala

News Conference Statcnwnt by Secretary Dullen

Press release 310 dated June s

At his news conference on June 8, Secretary
Dulles was asked the current status of consulta-
tions going on with regard to Guatemala and the
prospects for a Foreign Ministers Conference on
the subject. The Secretai^ replied:

Well, there is going on an exchange of views
with reference to the desirability of action which
was forecast by the Caracas Declaration which
was adopted last March ' and subsequent develop-
ments in the way of this surrci>titious shipment of
arms into Guatemala from behind the Iron Cur-
tain.- That has necessitated a consideration by
the American States as to whether or not a meet-
ing of the .Vmerican States would be desirable.
There has been no decision taken as yet.

Ashed whether the United States favoi'ed the
holding of a Foreign Ministers Conference to
deal with the question of Coinmunists in Guate-
mala, Mr. Dulles replied :

We have not ourselves come to any final conclu-
sion, because we believe that a final conclusion
should be arrived at only after we have had an
exchange of Wews with the other sister Eepublics.
We are disposed to feel that the situation is one
which calls for such a meeting, but, as I say, we
are Iveeping our minds open on the subject until
we have heard whatever arguments there might
be on the other side of the matter.

Mr. Dulles was asked whether he had any com-
ment on the suggestion hy the President of Guate-
inala that he meet with President Eisenho^oer to
iron out differences between th-e two countries.
The Secretary replied :

There is a persistent effort by the authorities in
Guatemala to represent the present problem there
as primarily a problem between Guatemala and
the United States relating to the United Fruit
Company. That is a totally false presentation
of the situation. There is a problem in Guatemala,
l)ut it is a problem in Guatemala which affects the

' For text of declaration see Bulletin of Mar. 22, p. 420.
" For Secretary Dulles' news conference statement of
May 25, see ibid.. .Tune 7, p. 87.S.

950

Department of State Bulletin

other American States just as much as it does
the United States, and it is not a problem which
the United States regards as exchisively a United
States-Guatemahi problem.

If the United Fruit matter were settled, if they
gave a gold piece for every banana, the problem
would remain just as it is today as far as the
presence of Communist infiltration in Guatemala
is concerned. That is the problem, not the United
Fruit Company. And this particular prolilem be-
tween Guatemala and the United States equally
prevails as between Guatemala and a number of
other States which are seriously threatened or
would be seriously threatened if communism, in
the words of the Caracas Resolution, gets control
of the political machinery of any American State.
As was said at Caracas, that would be a danger to
all the American States and threaten the peace of
this hemisphere. Therefore it is not just a ques-
tion between Guatemala and the United States.

Benefits Extended to OAS

White House press release dated June ."5

The President on June 3 signed an Executive
order ^ entitling the Organization of American
States to the benefits of the International Organi-
zations Immunities Act. Since Februai'y 19, 1946,
the Pan American Union has been designated as
being entitled to the privileges provided by the
International Organizations Immunities Act. The
present designation supereedes this earlier desig-
nation, and the order expressly provides that the
designation of the Organization of American
States shall be deemed to include the designation
of the Pan American Union.

The International Organizations Immunities
Act, which was approved December 29, 1945, pro-
vides that certain privileges, exemptions, and im-
munities shall be extended to such public inter-
national organizations as shall have been desig-
nated by the President through appropriate
Executive order, and to their officers and em-
ployees and the representatives of the member
.=tates to such organizations.

The Organization of American States has de-
veloped over a period of more than 60 years
through treaties, resolutions, and recommenda-
tions of meetings of representatives of the Ameri-
can Republics from the first meeting at Washing-
ton, D.C., in 1889, to the Ninth International Con-
ference of American States at Bogota, Colombia,
in 1948. The Charter of the Organization of
American States, an inter-American treaty rati-
fied by the United States on June 19, 1951, was
signed at the Bogota Conference and came into
effect on December 13, 1951.

' No. 10533 ; 19 Fed. Reg. 3289.

iune 2?, 7954

During most of its history the Organization,
which is now the Organization of American States,
was known by the name '"Pan American Union."
The Organization of American States consolidates
and integrates the various entities of the Inter-
American System. Under the charter, the Pan
American Union continues as the central, perma-
nent organ and General Secretariat of the Organi-
zation of American States.

Sale of Ships to Brazil

Statement hy Charles P. Nolan *

I believe that there should be no doubt that the
economic development of Brazil is in the national
interest of the United States. The dollar value
of our trade with Brazil has increased very greatly
in recent years, in fact over five times since 1940.
Brazil expects to earn over 1 billion dollars in
1954, which it will use to buy United States prod-
ucts and repay dollar obligations. Thus, Brazil
represents a very important gi'owing market for
United States industry.

The size of Brazil and the distribution of its
population along the coast makes Brazil uniquely
dependent upon coastal shipping. The coast is
over 5,500 miles long and 85 percent of the popu-
lation lives within 100 miles of the ocean. There
are 33 major and many smaller ports. Coastal
shipping carries 45 percent of the total interstate
commerce of Brazil, between the 18 States (in-
cluding the Federal District). The six Northern
States and the two Southern States, with almost
half the population of the country, depend upon
coastal shipping to carry over three-fourths of
their total interstate commerce. The rail and
higliway transportation to these northern and
southern extremities is very inadequate.

The present Brazilian coastal fleet is composed
of 307 vessels of 609,000 dead weight tons. Some
of these vessels are 60 years old, and over 65 per-
cent are more than 30 years old. Less than 30
of the ships may be considered as modern, efficient
vessels for coastal trade.

S. 2370 is part of a shipping program between
this Government and the Government of Brazil.
In 1952, the situation with respect to the shipping
trade between the United States and Brazil was
bad with a number of acute unsolved problems

' Made before the Merchant JIarine and Fisheries Com-
mittee of the House of Representatives in support of S.
2:!T0. authorizing the sale of certain vessels to Brazil, on
.June 8 (press release .'JOT). Mr. Nolan is oflBcer in
charge, transportation and communications. Bureau of
Inter-American Affairs.

951

which were detrimental to United States shipping:
interests. In order to resolve these problems in
the interest of United States shipping lines, the
State Department, after consultation with the
three shipping companies operating to Brazil, de-
vised a four point shipping program which was
submitted to the Brazilian Government in Octo-
ber 1952 and accepted by that Government in
March 1953. As a result, substantial progress
has been made to date in improving this situation.
The four points of the progi-am and the progress
made are outlined below :

1. The desirability of reestablishing equal treat-
ment in Brazilian ports for United States ships,
and equal treatment in regard to consular fees on
cargo manifests.

Equal treatment in Brazilian ports for ships of
United States registry was originally established
in Article 1, paragraph one of Decree Law 24511
of June 29, 1934. However, Decree Law 347 of
1938 gave Lloyd Brasileiro vessels preferential
and discriminatory berthing privileges and ex-
clusive warehouse facilities in Brazilian ports.
The Brazilian Government by recent administra-
tive action terminated this preference for Lloyd
Brasileiro vessels. In order to eliminate perma-
nently such preferential treatment it is necessary
for the Brazilian Congress to enact legislation re-
voking Decree Law 347 of 1938.

Article 20 of Decree Law 420 of 1937 provided
for a 50 percent discount on consular fees to shiji-
pers using Lloyd Brasileiro vessels. Tliis prac-
tice can only be eliminated by legislation in the
Brazilian Congress.

President Vargas on September 4, 1953, sent a
message to the Brazilian Congress requesting leg-
islation to permanently cancel Decree Law 347 of
1938 and Article 20 of Law 420 of 1937.

2. The need to relieve congestion in Brazilian
poi'ts.

Congestion in Brazilian ports, which costs ship-
ping companies and consumei-s millions of dollars
annually through increased shipping expenses and
charges, can and is being eliminated in accordance
with specific recommendations made by the Joint
United States-Brazil Economic Development
Commission. This Commission was established to
assist Brazil in its development planning and eco-
nomic rehabilitation.

Brazil has taken a number of steps in improv-
ing conditions in its ports so as to relieve conges-
tion and speed up the turn around time of vessels.
The following are examples :

A. There has been an expansion of the dredging
program in the ports of Rio de Janeiro, Porto
Alegre, Belem, Recife, Salvador, and Cabedelo;

B. The Government of Brazil in increasing the
hours of work of customs officers and other port
officials has considerably shortened the time for-
merly taken to process customs and other docu-
ments.

C. Certain revisions in regulations concerning
the handling of banking documents have been
made, which has contributed to the lessening of
congestion of cargo in the ports;

D. In Rio de Janeiro new piers and warehouses
have been constructed ;

E. Penalties have been imposed for use of ware-
houses as storage places over a certain period of
time. This has helped to eliminate warehouse
congestion and facilitates the movement of cargo
to and from the docks ;

F. The Brazilian Government undertook a
study of the administration and management of
port facilities in Rio which resulted in measures
being put into effect, eliminating a gi'eat amount
of red tape and speeding up port operations ;

G. In Porto Alegi-e, port congestion lias been
greatly lessened by administrative reforms insti-
tuted by the Government which did away with
time-consuming bureaucratic requirements ;

H. The Government speeded up and completed
the construction of a long awaited oil pipeline in
Santos. This eliminated the need for railway oil
tank cars which wei'e in short supply, and, as a
result, the storage facilities in the port are no
longer taxed while waiting for tank cars to can-y
the oil inland. Improved methods were also insti-
tuted in the use of railway cars which made pos-
sible the availability of more cars for the loading
and unloading of ships.

3. The desirability of Brazilian flag vessels par-
ticipating in the movement to Brazil of cargo fi-
nanced by Export-Import Bank loans.

This has been done by the United States grant-
ing waivers of Public Resolution No. 17 whereby
Brazilian flag vessels are afforded an opportunity
to participate in moving such cargo to Brazil.

4. The need for additional vessels for Brazil's
coastwise service. President Vargas has person-
ally requested our assistance on this matter.

The Brazilian Government was informed that
an endeavor would be made to obtain appropriate
legislation authorizing the release of 12 Cl-
MAV-1 type vessels from the reserve fleet for
Brazil's coastal trade.

The present bill under discussion is for this
purpose.

Under the Ship Sales Act of 1946, Brazil pur-
chased 12 vessels of this type. Pursuant to an
application submitted by the Brazilian Govern-
inent, 18 had been set aside for that country but
Brazil did not take delivery of the balance for
various I'easons. Brazil also wished to purchase
2 refrigerated vessels of the coastal type but none
of this type were sold to non-citizens.

This bill provides that every vessel sold and
transferred shall be subject to an agreement by the
Government of Brazil that the vessels, whether
under mortgage to the United States or not, shall
not engage in international trade or in other than

952

Department of State Bulletin

the coastwise trade of Brazil. Moreover, United
States ships cannot operate in the Brazilian coastal
trade since Brazil has coastal laws similar to ours
in that regard. Consequently, such vessels will
not be in competition with vessels operated by
United States shipping lines operating to Brazil.
On the contrary, Brazil will use these vessels for
feeder services in moving cargo from the smaller
ports, many of which are inaccessible to the deeper
draft United States ocean going ships, to the
larger ports. This will contribute to the expand-
ing of Brazilian economy and trade which will be
shared by United States flag vessels.

The Department has no objection to the amend-
ment as proposed by the American Merchant
Marine Institute relating to the sale of privately
owned Cl-MAV-1 type vessels to Brazil at prices
equal to or less than, and upon credit terms similar
to, those specified in the original bill.

The Department also believes the same comment
applies to the position as taken by the Association
of American Ship Owners with respect to its state-
ment that prospective purchasers of ships should
purchase them from private owners in the private
market.

In reference to the opposition of the Shipbuild-
ers Council of America to S. 2370, it should be
pointed out that the bill if enacted would result
in considerable work being done in United States
shipping yards on the vessels purchased from the
laid up fleet in putting such vessels into class, in
accordance with the minimum requirements of the
American Bureau of Shipping.

A further advantage to United States indus-
tries very closely allied with shipbuilding is the
fact that during the lives of these ships all spare
parts and replacements for main engines and
auxiliary machinery must be purchased from the
United States manufacturers. Brazilians are
highly pleased with the American diesels in the
ships of this type which they are presently oper-
ating, and it would appear good policy to try to
keep this important market for United States
engine builders.

Tliis legislation could not, therefore, adversely
affect the American Merchant Marine.

In the State Department's opinion the passage
of this bill, along with the carrying out of the
other parts of the program, will be exceedingly
helpful in promoting good shipping relations be-
tween the United States and Brazil.

Correction

Bulletin of May 17, 1954, page

769:

Third complete sentence, column 1, should read :
"Value of manufactures increased from .f6.S billion
in 1045 to $11.4 billion in 1952, an increase of better
than 70 percent in 7 years."

Current Legislation on Foreign Policy:
83d Congress, 2d Session

International Sugar Agreement. Hearing before a SutH
committee of the Senate Committee on Foreign Rela-
tions on Ex. B, 83d Cong., 2d sess., the International
Sugar Agreement. Mar. 18, 1954. 77 pp.

To Provide for the Orderly Settlement of Certain Claims
Arising out of Acts or Omissions of Civilian Employ-
ees and Military Personnel of the United States in
Foreign Countries and of Civilian Employees and
Military Personnel of Foreign Countries in the United
States. Hearings before the Subcommittee of the
House Committee on Foreign Affairs on H. R. 7819.
Mar. 18 and 19, 1954. 56 pp.

Activities of United States Citizens Employed by the
United Nations. Second Report of the Subcommittee
To Investigate the Administration of the Internal
Security Act and Other Internal Security Laws to
the Senate Committee on the Judiciary on Activities
of United States Citizens Employed by the United
Nations. Committee print. Mar. 22, 1954. 53 pp.

To Promote the Foreign Policy of the United States by
Fostering International Travel and the Exchange
of Persons. Hearings before the Subcommittee on
Foreign Economic Policy of the House Committee
on Foreign Affairs on H. J. Res. 350. Feb. 8, 16,
24 and Mar. 3, 9, 10, 18, 31, 1954. VIII, 301 pp.

International Sugar Agreement. S. Ex. Rept. 4, Apr.
6, 1954. 9 pp.

Report of a Special Subcommittee of the House Armed
Services Committee Following an Inspection Tour
Sept. 16 to Nov. 12, 1953. Committee print. Apr. 8,
1954. Ill, 70 pp.

Providing for a Study of Technical Assistance Pro-
grams. Report to accompany S. Res. 214. S. Rept.
1198, Apr. 9, 1954. 4 pp.

Establishing the Office of Refugees and International
Migration. Report to accompany S. 1766. H. Rept.
1515, Apr. 12, 1954. 39 pp.

Extending the Period for Filing Certain Claims Under the
War Claims Act of 1948. Report to accompany H. R.
6896. S. Rept. 1206, Apr. 14, 1954. 7 pp.

Certain Cases in Which the Attorney General Has Sus-
pended Deportation. Report to accompany S. Con.
Res. 75. S. Rept. 1208, Apr. 14, 1954. 2 pp.

Encouragement of Distribution of Fishery Products. Re-
port to accompany S. 2802. S. Rept. 1210, Apr. 14,
19.54. 28 pp.

Protocol Limiting Cultivation of the Poppy Plant and the
International and Wholesale Trade in and Use of
Opium. Message from the President Transmitting
the Protocol for Limiting and Regulating the Cultiva-
tion of the Poppy Plant, the Production of, Interna-
tional and Wholesale Trade in, and Use of Opium,
Which Was Open for Signature at New York from
June 23 until Dec. 31, 1953, and During that Period
Was Signed on Behalf of the United States of Amer-
ica and 35 Other States. S. Ex. C, Apr. 14, 1954.
39 pp.

Conferring Jurisdiction on the Attorney General to De-
termine the Eligibility of Certain Aliens To Benefit
under Section 6 of the Refugee Relief Act of 1953.
Report to accompany H. J. Res. 476. H. Rept. 1538,
Apr. 14, 1954. 3 pp.

Valuation of Vessels under War-Risk Insurance. Report
to accompany S. 1878. S. Rept. 1212, Apr. 15, 1954.
18 pp.

Extending Admiralty Jurisdiction of Federal District
Courts To Cover Foreclosure of Foreign Ship Mort-
gages. Report to accompany S. 2407. S. Rept. 1213,
Apr. 15, 1954. 7 pp.

June 21, 1954

953

U. S. and Canada Inaugurate Niagara Falls Remedial Project

Following are texts of addresses made on June 2
at Niagara Falls during a ceremony inaugurating
the Niagara, Falls Remedial Project}

JOHN SLEZAK (UNITED STATES)
UNDER SECRETARY OF THE ARMY

In this time of international conflict, it is heart-
ening and reassuring to witness two nations in the
western world living side by side in mutual respect
and friendship, and jointly dedicating their talents
to the enhancement of one of the most magnificent
natural wonders with which our continent is en-
dowed. At the same time, consistent with the
preservation of natural splendor, Canada and tlie
United States are preparing to dei'ive, from this
same resoui'ce, power to expand our economies and
add to the comfort and well-being of our people.

It is plain good sense for us to cooperate in such
activities, which result only in mutual benefit.
Yet how rare tliis kind of good sense is today !

Throughout the world, more lifegiving water is
being withheld by international disputes — with-
held from people who desperately need it — than
has been developed and put to use in all lands to-
gether. Moi'e than half of the world's people live
in the great arid belt that circles the globe. These
people suffer hunger and poverty, beside barren
acres, while the water which would bring good
living to all flows by unused, because men on one
bank of the river cannot work together with the
equally needy men who live on the other bank.

Examples dot the globe. They exist in the Mid-
dle East, in the Far East, in Europe, in Africa,
and in Asia. They exist also in the Americas, both
North and South. Even within the United States,
water rivalries between states have held back
needed resource developments from entire genera-
tions of our citizens. Experience has shown that
there are very few causes of conflict between people
which are as stubborn, as complex, and as fraught
with emotional excitement, as disputes over water.

One might think that the very urgency with
which water developments are required in desert
regions would be an incentive to cooperation — for

' For background, see Bulletin of June 1, 1953, p. 783,
and Aug. 10, 1953, p. 184.

954

that purpose, at least. Instead, we find that it is
two of the most prosperous and least needy nations
on earth, Canada and the United States, which
have been most successful in finding ways of solv-
ing water disputes. And perhaps it is their ability
to cooperate and get things done which has helped
to make these two nations so prosperous and
strong.

Canada and the United States set up the Inter-
national Joint Commission by treaty in 1909, to
handle problems arising along the more than 5,000
miles of international boundary between our two
nations. Most of these problems have dealt with
the use of rivers shared by both countries. The
Xiagara Falls Eemedial Project is a significant
example of the constructive work done under the
aegis of the Joint Commission. Through this
Commission, we have been able to reconcile our
interests in neighborly fashion, before difficulties
could become inflated into controversial issues and
inflamed into international quarrels.

The Commission has been an indispensable in-
strument in accomplishing the harmony that ex-
ists between the two most friendly nations on
earth.

But even this experienced organization, firmly
backed as it is by both its contributing nations,
cannot solve a river problem in a day. The point
is that it does solve these knotty problems — and
solve them well — by the democratic process, so
that people on both sides of the border know they
have obtained the best possible arrangement to
protect and advance all interests.

Vital developments are now being considered by
the International Joint Commission Avhich affect
the Kootenai,^ the Milk River, the Belly, the Wa-
terton, and even the mighty Columbia itself — de-
velopments which are basic to the growth of the
entire Northwest — because people on each side of
the border want joint discussion and action on
questions which concern both nations.

The same kind of hard-working cooperative
effort has been applied with mutual benefit in the
East, too — on the Great Lakes, and now on the
Niacara.

' IhiiL. June 7, 1954, p. 878.

Department of State BuUetin

But there is more to the story than the Inter-
national Joint Commission. The desire to work
together pervades all relations between our two
comitries. One of the great international projects
of our time, the St. Lawrence Seaway, has been
largely the concern of agencies of both countries
which have together over a period of years
amassed the necessary technical data and studied
the best means of coordinating the construction
efforts of the two nations.

And we cooperate for other purposes besides the
development of our resources. The most urgent
task of our generation — the need for self-preserva-
tion against ruthless and aggressive enemies,
armed with weapons of unprecedented power and
destructiveness — finds Canada and the United
States acting together in preparing for mutual
defense. There has never been any thought that
we might act otherwise. There have been prob-
lems in this joint defense effort, to be sure. But
they have always been treated simply as problems
to be solved, and not as difficulties, or obstacles,
which could for one moment separate us in our
joint endeavor.

So, alongside the Alaska highway, the coopera-
tion of Canada has made possible the construction
of the Haines-Fairbanks pipeline, which reaches
largely across Canadian soil to bring vital fuel
and oil to our bases in Alaska.^ The two govern-
ments are jointly constructing air-raid warning
installations on Canadian soil whicli will provide
protection to tlie great cities in both countries.*
And up at Churchill, the Canadians are sharing
with us their facilities and, more important, their
experience, in order to help give American troops
more realistic training in Arctic operations.

In short, this Niagara Remedial Project, though
unparalleled among other nations, is typical of the
type of cooperation which pervades all fields of
the relations between Canada and the United
States. We maintain joint weather stations in
the Canadian Arctic. Tiirough the International
Boundary Commission, we have provided means
for amicable adjiistment of all boundary questions.
The new Joint Economic and Trade Committee
opens another field of international cooperation
which has far-reaching potential significance.'*

It is against this background that we meet today
to inaugurate construction of the Niagara Falls
Remedial Project.

The problem of preserving and enhancing the
beauty of Niagara Falls has been studied by rep-
resentatives of both Canada and the United States
for the past 50 years. Ever since the turn of the
century, people have been concerned because the
crest of the Falls has been receding and because of
the harmful effect of past activities in the diver-

'lUd., Sept. 7, 19.'i3, p. 320.
' Ihid., Apr. 20, 19.'-)4, p. 63!).
' Ibid., Nov. 30, 1953, p. 739.

sion of water for power. As long ago as 1929, a
special International Niagara Board submitted a
report setting forth certain objectives to be fol-
lowed in controlling the waters of Niagara. But it
was not until February 27, 1950, that the two
governments negotiated a treaty calling for the
construction of remedial works to fulfill these
objectives."

In this treaty, we recognized the obligation to
maintain the beauty of the Falls as a primary
objective and stipulated that the common interest
in obtaining more power must be pursued only in
ways which are consistent with that overriding
purpose.

The International Joint Commission created an
International Niagara Falls Engineering Board to
solve the complex technical problems involved.
This Board reviewed all past studies of the prob-
lem and then made exhaustive engineering studies
of its own. It drew into the work a tremendous
array of technical talent. Segments of the re-
search were undertaken by many agencies — the
Hydro-Electric Power Commission of Ontario;
the Canadian Departments of Resources and De-
velopment, and of Transport ; the Buffalo District
and the United States Lake Survey of the Great
Lakes Division, U. S. Army Engineers; the Fed-
eral Power Commission ; and the Engineers'
Waterways Experiment Station.

They used helicopters, balloons, echo sounders,
and searchlights to survey the swift and turbulent
waters above the Falls. A major part of the work
was done on two great hydraulic models, one at
tlie U.S. Waterways Experiment Station at Vicks-
burg, Mississippi, and the other set up by the
Hydro-Electric Power Commission of Ontario at
Islington, near Toronto.

When the studies were finished, the Engineering
Board submitted a detailed report recommending
a plan of i-emedial works to the Commission. The
Project was approved by the two Governments;
then it was returned to the International Joint
Commission for construction. The Commission
again appointed an International Board of Engi-
neers to supervise the job, and the actual work
was assigned to the Hydro-Electric Power Com-
mission of Canada and the U.S. Army Corps of
Engineers.

The plan calls for a control structure above the
Canadian side of the cascades and for excavation
and fills on both flanks of the Horseshoe Falls.

The control structure will be a long, low barrier,
extending out from the banks 1,550 feet into mid-
stream and equipped with sluice gates. Its pur-
pose is to preserve the beauty of American Falls
by maintaining the level of the pool above the
falls. It will also keep the bed of Grass Island
jjool covered at all times, and insure that the upper

'TiAS 2130; 1 U. S. T. 094. For an announcement of
the signing, see Bulletin of IMar. 20, lO.'iO, p. 448.

iune 21, 1954

955

cascades will continue to run full of water and
that the level of Lake Erie will remain unaffected.

And this structure is the means by which the
flow of water over the falls will be regulated.
Only by regulation of flow can we obtain more,
badly needed power from this mighty natural re-
source without impairing its beauty.

The excavation and fill are designed to preserve
and enhance the Horseshoe Falls. Up to now, the
scouring action of the water has been concentrated
in deep and receding notches, near the center of
the great curve. The deeper the notch is worn, the
longer the rim over which the water must pour,
and the thinner the rush of the cataract. In time,
the constant cutting away at this point would
continue the recession of the waterfall, which,
scientists tell us, has already moved backward
several miles during past centuries.

The engineers considered several plans for rem-
edying this situation. They decided it would be
best to excavate some 64,000 cubic yards of rock
from the Canadian flank of the Horseshoe and
about 24,000 cubic yards from the Goat Island
flank. These excavations will tap the flow of the
deep portion of the stream and carry water toward
the ends of the falls adjacent to the banks. Care-
ful and exhaustive model studies proved this to be
the most feasible, durable, and economical solution
of the problem.

Finally, the engineers sought some means of
shortening the length of the arc itself, so that the
water would have less room in which to spread
out and hence would flow more copiously at all
points along the world-famous curtain of the
falls. Hence they propose to fill in areas at the
two ends of the Horseshoe with rock, which will
be landscaped to blend into the natural formation
of the gorge and which will be placed where it
will eliminate destructive and water- wasting leaks.
From these filled-in promontories, visitors will be
able to view the wonder and beauty and power of
the cataract more intimately than ever before.

Speaking for the United States Army, we are
gratified that the Corps of Engineers has been
chosen to participate with the Hydro-Electric
Power Commission of Ontario in the planning and
construction of this project.

Perhaps you wonder why the United States
Army is participating in an activity as unrelated
to the military as the Niagara Falls Remedial
Project. This is just one of many civil works
projects assigned to the Corps of Engineers, which
enable the Army to keep an expert construction
force in being, doing useful work for our country
in peacetime, and able to apply its organization
and know-how instantly in the defense of the free
world if war comes.

In closing I should like to congratulate the mem-
bers of the International Joint Commission, and
the many distinguished men of both nations who
have served on engineering boards and who have

in other ways taken part in the development of
this Project, and the statesmen who, through un-
selfish and broad-visioned negotiations, have
cleared the way for the work to begin. But even
more than these, I believe the people of Canada
and the United States are to be congratulated.
Through their appreciation of the beauty of Ni-
agara Falls and their willingness to devote sub-
stantial resources to the preservation and enhance-
ment of that beauty, they are fulfilling their trust
to future generations, and at the same time will
derive appreciable benefits for themselves.

This IS true conservation. And, as a coopera-
tive undertaking, it is more — it is democracy in
action, manifesting itself across an international
boundary. There is beauty in that fact, too —
perhaps as much as in Niagara Falls itself !

JEAN LeSAGE (CANADA), MINISTER OF
NORTHERN AFFAIRS AND NATIONAL
RESOURCES

Two hundred and seventy-six years ago, accord-
ing to the records, a white man first saw Niagara
Falls. Describing his visit of 1678, Father Hen-
nepin wrote:

They pliinRe down a heljiht of more than five hundred
feet nnd its fall is composed of two sheets of water and a
cascade, with an island sloping down. In the middle these
waters foam and boll In a fearful manner.

Father Hennepin would not, perhaps, meet the
exacting requirements of modern engineers in his
estimate of the height of the 160-foot cliff below
the falls. His notes will, however, always be
valued as the first of the many volumes that have
been written in vain attempts to record the gran-
deur of this scene in prose or poetry. The first
visitors were explorers, missionaries, soldiers, and
traders, in the days when Canada was a colony of
France. They were followed, as our two countries
grew, by the casual visitors who made Niagara
Falls one of the best-known tourist centers in the
world.

We who are here today are but a few of the
countless millions who have come, and who will
come, to admire and to wonder. We are fortunate
that nature has created such a spectacle, and we
are particularly fortunate that circumstances have
been so arranged that we Canadians and Ameri-
cans should share it.

The falls which Father Hennepin saw in 1678
were some distance down the river from the falls
we see today. The records show that even since
1842 the crest of the Horseshoe Falls has eroded
up-stream a distance of 38,5 feet. If our two coun-
tries were content to let nature take its course, the
falls whicli future generations would see would
be something much different than tlie sigiit which
greeted Father Hennepin, and something a good
deal less spectacular than the scene before us today.

956

Department of Sfafe Bulletin

If this erosion were to continue above the head
of Goat Island, it would result in drying up the
American Falls entirely. The Horseshoe Falls
might develop into a series of rapids, with conse-
quent loss to posterity of all the grandeur and
romance of the present spectacle. This would be
a catastrophe for which we would be greatly
blamed — and rightly so — by generations yet to
come.

The falls, as they exist, present a majestic and
awe-inspiring spectacle during cycles of high flow
in the Niagara River. However, as the levels of
tlie upper lakes drop and the discharge decreases,
the white sheet of the American Falls loses some
of its beauty. A broken crest line and bare flanks
develop in the larger falls, while excessive flows
continue to concentrate in the apex of the Horse-
shoe, where erosion is greatest.

By the Niagara River Diversion Treaty of 1950,
the Governments of the United States and Canada
joined together to accomplish two purposes. One
was to put to beneficial use for power the water
not essential to maintain the scenic spectacle. The
other was to preserve, for present and future gen-
erations, the splendor of the view that is now be-
fore us. This will be accomplished through a
diversion of surplus water and by a careful redis-
tribution of the rest along the Horseshoe and the
American Falls.

The two purposes to which I referred are both
purposes for which I can, officially as well as per-
sonally, take pleasure at this time. The develop-
ment of hydroelectric power, which will be possible
through this work, gives me cause to rejoice as the
Minister in charge of the federal aspect of our
natural resources, and especially water resources.
But I can also rejoice at the more aesthetic and
less purely practical aspect of this occasion.

As the Canadian minister responsible for the
National Parks of Canada, I take great satisfac-
tion in being here. It is a pleasure to have the op-
portunity to visit again this great park which
the Province of Ontario, through the Niagara
Parks Commission, has restored and preserved
for us and for the future. Like most Canadians,
I have watched with admiration and respect the
development of plans for the improvement of
these park lands and those which have been estab-
lished just across the river by the Niagara Frontier
State Parks Commission. We must all be grate-
ful for the imagination and determination of an
earlier generation which first saw the value of the
park lands surrounding the falls. In 1885, the
parks system on this side of the river started with
only 554 acres, but it was a magnificent start which
marked the end of long years during which no
action had been taken to preserve this heritage.
Today the parks, the driveways, the remarkable
gardens, the priceless historic sites, are spread
over some 3,000 acres. This has been a great work
for which the parks officials deserve the congi*atu-

lations and admiration of every visitor who comes
here.

The International Joint Commission, and the
engineers and advisers who are associated with it,
deserve the thanks of every visitor for the patient
and unspectacular, but tremendous, work which
they have done to preserve this waterway. They
have had the full cooperation of Government of-
ficials of both countries, of the parks authorities,
and of the power interests. Special credit should
be given to the Hydro-Electric Power Commission
of Ontario and to the Corps of Engineers of the
United States Army which provided most of the
men and machines necessary for the preservation
of these works.

The efi^orts of all these men, whether they were
engaged in the physical job of digging the mas-
sive rock of the river bed or whether they labored
in offices over painstaking reports and careful ne-
gotiations, bore fruit in tlie Niagara River Diver-
sion Treaty of 1950. All of us as citizens of our
respective countries can congratulate ourselves on
that treaty, which was one of the most important
conservation measures our two countries have ever
jointly undertaken.

It is a source of gratification to me, as I am sure
it is to all who are present today, that I shall not
have to tell my children that, when they grow up,
they will know the magnificence of Niagara Falls
only through old photographs in the geography
books. Nature and the work of man have vastly
changed the scene which greeted Father Hennepin.
I hope, however, that the work which our genera-
tion is undertaking today will allow the visitor to
this spot in another 100 years still to sense the
feeling which overcame Charles Dickens when he
wrote :

"It was not until I came on Table Rock, and
looked — great Heaven, on what a fall of bright-
green water! — that it came upon me in its full
might and majesty.

"Then, when I felt how near to my Creator I
was standing, the first effect, and the enduring
one — instant and lasting — of the tremendous spec-
tacle, was Peace. Peace of mind, tranquility,
calm recollections of the dead, great thoughts of
eternal rest and happiness: nothing of gloom or
terror. Niagara was at once stamped upon my
heart, an image of beauty ; to remain there, change-
less and indelible, until its pulses cease to beat,
for ever."

ROGER B. McWHORTER, ACTING CHAIRMAN,
UNITED STATES SECTION, INTERNATIONAL
JOINT COMMISSION

We are met here today in this inspiring setting
as the representatives of two great friendly nations

June 21, 1954

957

to conduct a brief ceremony marking the begin-
ning of construction of remedial works in the
Niagara River for the preservation and enhance-
ment of the scenic beauty of the Niagara Falls
and for the purpose of avoiding economic waste by
making jjossible the use of a larger portion of the
flow of the river for the production of electric
power, without impairment of scenic values.

It is significant that in February 1950 the United
States and Canada entered into an agreement em-
bodied in a convention recognizing their ]^riinary
obligation to preserve and enhance the scenic
beauty of this famous spectacle and, consistent
with that obligation, their common intei-cst in
providing for the most beneficial use of the waters
of the Niagara River. By that agreement they
made the International Joint Commission the
guardian, so to speak, of the interests of tlie people
in one of their most cherished possessions.

This action was promjited liy deterioration in
the appearance of the falls and by the economic
waste attendant upon the use of only a minor part
of the flow for power purposes. In contrast, it
appears that a sound basis now exists for hojiing
and believing that with a proper distribution of
the flow over the crest of the Horseshoe Falls,
with greatly increased flow over the American
Falls, and with the greater part of the Niagara
waters used for power purposes, the falls will be
much more beautiful than they are today, and
moreover, will be more stable and permanent be-
cause recession of the crest will then be at a slower
rate.

The International Joint Commission is officially
concerned here only with perpetuation of the gran-
deur and incomparable beauty of the falls. Otlier
interests on either side of the boundary are con-
cerned principally with power production, and the
Commission clearly recognizes their right, and the
public interest therein, to make efficient use of all
water available to them under the terms of the
1950 convention. There is no room for a conflict
of interests.

Extensive field investigations and model experi-
ments necessary to the planning and design of
these important works were carried out for the
Commission by its technical advisers, with the in-
valuable collaboration of the Corps of Engineers,
U.S. Army, and the Hydro-Electric Power Com-
mission of Ontario, which together are now to
construct the works.

These joint endeavors exemplify the friendship,
confidence, and close ties which have existed con-
tinuously between these great countries for nearly
140 years ; and the assurance heretofore given by
the two Govei-nments and reiterated today that the
priceless world-famous Falls of Niagara shall be
enhanced in beauty and preserved for posterity,
will, we trust and feel, be received with genuine
satisfaction everywhere.

GEN. A. G. L. McNAUGHTON, CHAIRMAN,
CANADIAN SECTION, INTERNATIONAL
JOINT COMMISSION

AVe have come here from the Goat Island flank
of the Horeeshoe Falls, where we have taken part
in the brief ceremony designed to mark the com-
mencement of the extension of the facilities to view
the falls which are being constructed by the
United States Corps of Army Engineers for the
convenience and pleasure of tiie very manj' thous-
ands of people who will come there to see the
famous .spectacle at close proximity.

Here, at the head of the rapids downstream
from Grass Island I'ool. we are gathered together
for a similar ceremonj'. We are to witness the
driving of the first stake on the base line of the
control structure which will be created by the
engineers and men of the Ontario Hydro-Electric
Power Commission. This structure, with its im-
mense gates, will bring these fast waters under
control and will insure their distribution across
the crest of the falls so that the flow will enhance
their great natural beauty through giving a con-
tinuous curtain of water from shore to shore; and
also by stojjping the undue concentration in the
central notch, the progress of the erosion which
is taking place will be halted. And thus assur-
ances will be given for the preservation of the
falls, we have every hope, in perpetuity.

Tlirough the works at Goat Island and by simi-
lar works on the Canadian flank to be built later,
and by the regulating works here, all of which
have been arranged in the most intimate interna-
tional cooperation, not only are we assured that
scenic beauty will be preserved and enhanced but
also we are pleased that the flows not needed for
this primary pur]>ose will Ix' released so that
electrical power in large and useful quantities may
be generated for the service of the jjeojile of these
parts both in Canada and in the United States in
equal measure.

Thus after many long j^ears of controversy, the
rival points of view of beauty and of power have
been harmonized, and the dispute between them
ended in full agreement and to the now unques-
tioned and continued advantage of both.

My colleagues in the International Joint Com-
mission, Mr. McAVliorter and Mr. Weber of the
United States section and Mr. Spence and Mr.
Dansereau of the Canadian section, join me in
expressing their satisfaction in the memorable
event we witnessed today, and for them and for
myself and for all those who work with us I pledge
the continued trusteeship we are to exercise to the
conservation of this rare and beautiful and treas-
ured phenomenon which is Niagara.

958

Department of State Bulletin

Saint Lawrence Seaway
Development Corporation

White House press release dated June 9

The Pi'esident on June 9 signed an Executive
order ' designating the Secretary of Defense to
direct and supervise the Saint Lawrence Seaway
Development Corporation.

Tlie Act of Congi-ess, approved May 13, 1954,
establishing the Saint Lawrence Seaway Develop-
ment Corporation, provided that the Corporation
be subject to the direction and supervision of the
President or of the head of such agency as the
President may designate.

The purpose of the Executive order of June 9
is, accordingly, to assign to the Secretary of De-
fense the duties with respect to direction and
supervision of the Saint Lawrence Seaway Devel-
opment Corporation. It is contemplated that the
Secretary will assim to the Deputy Secretary of
Defense such of these duties as he wishes the
Deputy Secretary to perform at his direction.

The detailed management of the Corporation,
however, is vested by the statute in the Adminis-
trator of the Corporation, who will be appointed
by the President, by and with the advice and
consent of the Senate.

Significance of Allied Landing
in Normandy

Statement hy the President ^

White House press release dated June 5

This day is the 10th anniversary of the landing
of the Allied Expeditionary Force in Normandy.
That combined land-sea-air operation was made
possible by the joint labors of cooperating nations.
It depended for its success upon the skill, deter-
mination, and self-sacrifice of men from several
lands. It set in motion a chain of events which
affected the history of the entire world.

' No. 10534 ; 19 Fed. Reg. 3413.

'Read by Ambassador Henry Cabot Lodge, Jr., on
•lune t; at Utah Beach in Normandy. Mr. Lodge was
the President's personal representative at a ceremony
marking the anniversary of the Normandy landing.

Despite the losses and suffering involved in that
human effort, and in the epic conflict of which
it was a part, we today find in those experiences
reasons for hope and inspiration. They remind
us particularly of the accomplishments attainable
through close cooperation and friendship among
free peoples striving toward a common goal.
Some of my most cherished memories of that cam-
paign are those of friendly cooperation with such
distinguished military leaders of foreign nations
as Field Marshal Montgomery, Admiral Ramsay,
Marshal of the Eoyal Air Force Tedder, Marshal
Delattre de Tassigny, Marshal Juin, and Marshal
Leclerc. I recall my pleasant association with
the outstanding Soviet soldier. Marshal Zhukov,
and the victorious meeting at the Elbe of the
Armies of the West and of the East.

These lessons of unity and cooperation have
by no means been lost in the trying period of recon-
struction since the fighting stopped. Rather,
we see peoples, once bitter enemies, burying their
antagonisms and joining together to meet the
problems of the postwar world. If all those
nations which were members of the Grand Alli-
ance have not maintained in time of peace the
spirit of that wartime union, if some of the peoples
who were our comrades-in-arms have been kept
apart from us, that is cause for profound regret
but not for despair. The courage, devotion, and
faith which brought us through the perils of war
will inevitably bring us success in our unremit-
ting search for peace, security and freedom.

Memorial Day Observance at Cherbourg

Memorial Day ceremonies took place on May 30
at Cherbourg, France, as in other communities
around the world where American war dead are
buried. U. S. Consul A. G. Heltberg was the prin-
cipal speaker at the observance, which as in pre-
vious years was sponsored by the city government.
In reporting to the Department of State on the
day's events. Consul Heltberg noted one "peculiar
aspect" of the Cherbourg observance :

The Cherbourg cemetery contains only 4 Ameri-
can graves — all dating from the Civil War. They
are the graves of sailors who died in the battle be-
tween the U. S. S. Kearsage and the Confederate
ship Alaba?na, which was fought on June 19, 1864,
within sight of Cherbourg.

June 21, 1954

959

A^Progress Report on Spanish-American Cooperation

hy James Clement Dunn
Ambassador to Spain ^

i

One year ago, shortly after my arrival in Spain
as Ambassador, I had the pleasure of being with
you here in this industrial and shipping metropolis
of Spain, the beautiful city of Barcelona, and had
the privilege of addressing this unique and out-
standing organization, the American Chamber of
Commerce in Spain.''

Since then, I have learned from personal ob-
servation a great deal concerning your construc-
tive activities, not only here in Barcelona but
also in Madrid, Seville, Bilbao, and Valencia.

It is a source of satisfaction to me as an Ameri-
can that, among approximately 4,000 members, 90
percent are Spaniards, and I am honored as an
American that so many important Spanish busi-
nessmen participate in the American Chamber of
Commerce in Spain.

I also should like particularly to compliment
the American Chamber of Commerce in Spain on
its excellent publication, Spanish- American Trade,
which, with its handsome color photographs and
its many informative articles in both Spanish and
English, is a thoroughly worthwhile magazine
devoted to international commerce.

"Wlien I spoke with you last year, the Govern-
ments of Spain and the United States were still
engaged in negotiations with regard to the es-
tablishment of a new relationship between each
other. On September 26 were signed the military
and economic agreements between Spain and the
United States,^ and since then we are embarked
on a path of joint cooperation mutually desired
by both countries. Among the lasting effects of
these agreements of direct interest to the American
Chamber of Commerce is the path they open for
greater association between the Spanish and
American people and the possibility of increased
trade and closer business relations.

' Address made before the American Chamber of Com-
merce at Barcelona, Spain, on May 25.

' For text of Ambassndor Dunn's address of .June 16,
1953, see Bulletin of June 29, 1953, p. 913.

• lUd., Oct. 5, 1953, p. 435.

Allocations Under Economic Program

From time to time during the past months, I
have taken advantage of opportunities such as
this one tonight, to make a brief progress report
on the work that has been accomplished in the
carrying out of this new relationship between
Spain and the United States. I am gratified to
be able to state to you that we are moving steadily
ahead in both the economic and military programs.

A short time ago it was announced that the final
determination of the broad categories recom-
mended to the United States Foreign Operations
Administration for allocation of funds under the
economic program had been completed. These
recommendations have had constantly in mind the
objective on the part of both the Spanish and
United States authorities involved of accomplish-
ing the greatest good for all of Spain and its
people.

The funds devoted to economic aid totaling $85
million will be devoted to financing imports into
Spain of a multitude of things that are regarded
as of primary importance to the overall economic
development of the country, as well as to the pro-
vision of technical assistance in various forms. It
is hoped that this technical assistance will not only
provide an exchange of knowledge in scientific,
technical, and industrial methods and techniques
that will have an immediate and favorable impact
on the economy, but will provide a sound basis
for the long-range continuing economic develop-
ment of the country.

Perhaps I can give you a better understanding
of how this year's $85 million will be used if I
try to give you a general picture of what these
funds are intended to accomplish in the various
segments of the Spanish economy to which they
will be devoted.

For instance, the largest single general cate-
gory of expenditures will be industrial raw
materials. Almost $31 million will go to finance
imports of such vitally needed materials as non-
ferrous metals, cotton, steel products, ferrous
scrap, crude rubber, sulphur, etc. Increased pro-

960

Department of State Bulletin

duction is the key to lower prices and higher living
standards, and all of these raw materials, together
with others that Spain will be providing from her
own resources, will go into Spanish industrial
production.

Agricultural production is likewise expected
to benefit from the program, and about $8^0 mil-
lion has already been programed for agricultural
machinery and equipment of various kinds. These
imports will include : machinery for land reclama-
tion and irrigation projects and certain well-drill-
ing equipment ; tractors and other land tillage and
harvesting machinery for the farmer; as well as
some equipment in connection with reforestation
programs.

The importance of providing a larger and a
steadier supply of electric power to Spanish in-
dustry and Spanish homes is apparent to all. Ap-
proximately $121^ million will be devoted to this
purpose. $5 million of this amount will pro-
vide equipment and materials urgently needed to
get certain existing power plants or power in-
stallations now being constructed into full produc-
tion at the earliest moment. The balance of ap-
Eroximately $7i^ million is to be devoted to the
nancing of certain completely modern thermal
power plants in key locations in Spain.

The Spanish railroads are to receive approxi-
mately $11 million. This program of rehabilita-
tion and modernization will provide a wide range
of material and equipment and should be of great
benefit to those portions of the transportation
system to which it is applied.

The steel industry, the products of which play
so important a role in any economy, is to receive
approximately $8 million, about half of which
will go toward increasing production of steel
products, largely sheet steel and tin plate, to both
of which categories Spain now has to devote sub-
stantial amounts of her foreign exchange earnings.

Spanish coal mines are to be assisted in their
program of modernization by the provision of
$2- to $214 million for urgently needed equipment.
It is expected that this investment will result in
a sufficient increase in coal production to more than
pay for itself in a very short time by reducing
the necessity for coal imports.
_ The Spanish highway program, and the exten-
sive hydraulic works programs, so essential to
Spain's water supply and irrigation plans, will
together receive about $5 million in heavy con-
struction equipment.

The cement industry is another essential ele-
ment in the economy and will receive approxi-
mately $4 million. About half of this sum will
be devoted to the provision of machinery and
equipment to increase the efficiency and produc-
tion of existing Spanish cement plants, and the
balance will provide a new plant of the most
modern design.

Various factories important to the defense of
Spain, as well as to the civilian economy, will

be provided with machine tools to the amount of
$1 million ; and Spain's civil air transport will
be assisted in its plans for safe and efficient serv-
ice by imports of about $% million in ground
control equipment.

It is expected that the first phase of an intensive
program of technical assistance will require about
$1 million of this year's funds.

Off-Shore Procurement

Besides the above program of direct aid under
immediate consideration, there is also the oppor-
tunity now being developed for Spain to partici-
pate to an increasing degree in the Off-Shore Pro-
curement Program. This program, generally
speaking, is designed to assist the economies of
friendly Western nations by allowing them to par-
ticipate in supplying various items for military
use in the defense of Western Europe. Contracts
negotiated under this program are to be paid for
in dollars and in this way will benefit Spain's for-
eign exchange situation as well as increase its in-
dustrial potential to the extent that Spain partici-
pates in the program.

A Spanish firm obtained last year one contract
in the amount of $2.8 million, and there are now
under active consideration bids of other Spanish
concerns for further contracts totaling a consid-
erable larger amount. For instance, already, ac-
cording to recent news from the United States
Military Headquarters in Germany, Spain is about
to receive an additional contract for nearly $2 mil-
lion worth of munitions.

Incidentally, in line with this same program,
Spain has furnished the American Army Quarter-
master Corps during recent months fresh fruit and
vegetables worth nearly $500,000. Such a hopeful
start gives us a reasonable expectation that Spain
will continue an increasingly successful participa-
tion in this important economic development.

Cooperation between Spain and the United
States does not stop with the fulfillment of these
commitments. Recently, the two Governments
arrived at an understanding whereby Spain would
be able to obtain approximately 300,000 tons of
wheat, to be paid for in pesetas, which in turn
would be spent in Spain by the United States Gov-
ernment to defray part of the cost of base con-
struction and other United States expenses in
Spain.

Of the greatest interest, however, is the matter
of trade. I honestly believe that there is no part
of United States foreign economic policy which
has been given such painstaking study during the
past year as that of trade. A month ago an im-
portant trade mission interested primarily in agri-
cultural commodities visited Spain for 4 days, ex-
amining carefully different phases of United
States-Spanish trade. They were cordially re-

June 27, 1954

961

ceived by the Spanish Government and by the
businessmen they met in Spain, both in Madrid
and here in Barcelona. This trade mission left
no doubt about the importance the United States
attaches to the need for the United States to in-
crease its imports as well as its exports. This em-
phasis on their part is in complete harmony with
President Eisenhower's message to Congress on
this subject delivered on March 30,^ in which he
not only stated that it was in the national interest
to obtain the highest level of trade as well as the
most efficient use of capital and resources, but rec-
ommended to the Congress that it enact legislation
which would renew the Trade Agreements Act and
allow for further reduction of tariffs pursuant to
negotiations; that customs simplification legisla-
tion be enacted ; that the present "Buy American"
laws be modified ; and that other steps be taken to
make it easier for the United States to import.
Moreover, the President just last week, in his proc-
lamation of World Trade Week, declared that "the
growth and prosperity of the nations of the free
world depend to a significant degree upon the con-
tinued expansion of the exchange of their goods
and services in world markets."'

Exchange Program

A most useful byproduct of the new relation-
ship between Spain and the United States is the
exchange of visits by leaders in the fields of both
commerce and defense. Recently the Minister of
Commerce, Don Manuel Arburua, that very able
and distinguished gentleman who is witli us here
tonight and who has had a long and fruitful as-
sociation with this Chamber, made a most suc-
cessful visit to Washington as well as a tour of
business and industrial centers throughout the
United States. I am sure that the associations he
formed there will contribute substantially toward
the development of trade prospects for both Spain
and the United States.

Likewise, the Minister of Air, General Gonzalez
Gallarza, has just had a most useful official visit
which included conversations with his American
military colleagues as well as an inspection of
important American military sites.

We look forward this fall to the visit of the
Minister of Agriculture, Don Rafael Cavestany,
in connection with our important mutual interest
in the field of agriculture. Just as it has been
most helpful for prominent Americans to come
here and learn at first hand about Spain, so is it to
our mutual advantage that distinguished Spanish
leaders should exchange views at first hand in
Washington and become closely acquainted with
the United States.

'Ibid., Apr. 19, 1954, p. 602.
'Ibid., May 24, 1954, p. 801.

With regard to the military agreements, I am
glad to report that we are making steady progress.
Equipment for the Spanish Armed Forces — army,
navy, and air — continues to arrive and. as the
program develops, should substantially increase
the defense effectiveness of Spain. Early this
month, the people of Barcelona saw some of the
latest type of jet training planes unloaded in the
port en route to Talaveral la Real. The program
for the construction of military facilities is also
gaining momentum. It is expected that the time-
consuming planning and design stage will be suffi-
ciently far advanced by this summer to permit the
actual construction of certain of the projects to be
started in early autumn. Tlie managing con-
tractor firm which was selected late in January
has made its preliminary engineering, equipment,
and organization studies, and its representatives
have been in Washington recently to consult with
the Department of Defense. The first construc-
tion will be at Zaragoza and Torrejon by mid-
summer. As you know, the maximum practical
use will be made of the Spanish construction in-
dustry as well as Spanish labor, always with due
regard for the necessities of the Spanish economy.

In closing this progress report which I have
been privileged to make to you tonight, I wish to
emphasize, and to ask you to take with you, a
conception of the long distance we have traveled
along the path of the new Spanish-American rela-
tionship established since I spoke with you last
year here in Barcelona. Viewed day by day, we
often tend not to realize the advance we have
made. The understanding between Spain and the
United States is no fly-by-night or hastily con-
ceived policy. It is a partnership carefully con-
sidered and entered into in full faith by two
sovereign peoples, each with high respect for the
other and a confident knowledge that both fully
comprehend the nature and intent of the foreign
aggression which menaces the free world. In
carrying out the agreements reached last year, we
have already established a spirit of cooperation
that augurs well for the future. By increasing
our military and economic strength, we not only
contribute to our own security but also to that of
the Western World and to the attainment of
world peace.

Shipment of Seed to Iraq

The Foreign Operations Administration an
nounced on May 26 that an emergency shipment of
6 tons of garden seed would be sent to Iraq by air
on May 27. The seed represents the first install-
ment of a 25-ton shipment to help the farmers oi
Iraq, whose spring plantings were washed away
by floods in March and April. The initial ship-

962

Departmenf of Sfa/e Bullefii

nient of seed includes cabbage, corn, and water-
melon, all important cash crops and staple foods
in Iraq. Other shipments will be dispatched by
surface ship in the near future.

Unusually heavy rains in March brought the
worst Tigris River flood in the 47 years that flood
levels have been recorded. It has been estimated
that some 3 million acres of land in the Tigris basin
were flooded; 500,000 people were displaced or
made homeless and, although there was little loss
of human life, damage toll came to some $80
million.

U.S. Presents Argument
in U.N. Award Case

Press release 313 dated June 10

The Government of the United States was rep-
resented on June 10 before the International Court
of Justice at The Hague by Herman Phleger, Legal
Adviser of the Department of State, who pre-
sented the oral argument of the United States in
the advisory opinion proceedings regarding the
effect of awards of the Administrative Tribunal
of the United Nations.

In the present case the International Court of
Justice has been asked by the United Nations Gen-
eral Assembly to advise whether the Assembly has
the right, on any grounds, to refuse effect to awards
of the United Nations Administrative Tribunal.
It has also been asked, if the answer to the first
question is affirmative, on what principal grounds
it can lawfully exercise that right.

The awards in dispute are the compensation ad-
judged by the Tribunal as due to 11 United States
citizens who, in 1953, were dismissed from tlie
United Nations by the Secretary-General for re-
fusing to testify before official U. S. investigat-
ing bodies regarding subversive activities. The
Tribunal held that the action of the Secretary-
General was not taken in accord with the staff reg-
ulations and was, therefore, illegal. Last fall, the
Eighth General Assembly, instead of appropriat-
ing funds to pay the awards, sought the advisory
opinion of tlie International Court of Justice.

Under tlie Statute of the International Court of
Justice, governments interested in an advisoi-y
opinion proceeding are afforded an opportunity
to submit written statements to the Court and are
allowed oral hearings. In the present proceeding,
14 governments, including the United States, pre-
sented written statements setting forth the views
of tlieir governments, while four other govern-
ments sent communications referring to expres-
sions they had previously made in General
Assembly debate.

Mr. Phleger, in his oral argument to the Court,
has summed up the United States position as fol-
lows:

In the view of the United States Government, the argu-
ment that the Assembly has no right to review the awards,
and must automatically pay them, cannot be sustained.
We think the Assembly has not only the right, but the
duty as well, to examine requests for appropriations, and
has the right to refuse appropriations to pay awards of
the Administrative Tribunal in tho.se cases where it be-
lieves that the relevant considerations so require. We
think the grounds to support such action are found in the
Charter provisions defining the budgetary and regulatory
responsibilities of the Assembly, its relationship to sub-
sidiary organs such as the Administrative Tribunal, the
function of the Secretary-General as the chief administra-
tive oflScer of the Organization, and in the Charter pro-
visions regarding interpretation and .iudicial power.

Whether the General Assembly would decide, in a given
case, to refuse an appropriation must depend on its
judgment of many factors which are proper for the As-
sembly's consideration. The weighing of these factors
adds up to a judgment of a legislative character, to be
made by the highest United Nations body in which all
Members are represented. The Charter basis and limi-
tations of Assembly action can and should be stated, as
a matter of law. The reasons and motivations of As-
sembly decision to vote or refuse an appropriation in a
particular situation are otherwise to he left to the judg-
ment of the Assembly, as the United Nations organ with
immediate responsibility in the matter.

Mr. Holland Appointed to
Railway Congress Commission

Press release 296 dated June 3

The President on June 3 appointed Henry F.
Holland to be a member of the United States Na-
tional Commission in the Pan American Railway
Congress Association. Mr. Holland is presently
Assistant Secretary of State for Inter- American
Affairs and this appointment will be in addition
to his present position. He will replace John M.
Cabot as a member of the National Commission.
Mr. Cabot is presently American ^Vmbassador to
Sweden.

Participation by the United States in the Pan
American Railway Congress is authorized by
Public Law 794, 80th Congress.

Government officials and private organizations
of 17 countries are represented on the Pan Ameri-
can Railway Congress. The Congress is designed
to "promote the development and progress of rail-
ways in the American Continent." The first con-
gress was held at Bogota, Colombia, in 1910.
Since then eight congresses have been held with
the Eighth Congress meeting at Washington,
D. C, and Atlantic City, N. J., in June 1953.^ The
Ninth Congress is scheduled for Buenos Aires in
1956.

' For an article on the Eighth Congress, see Buiixtin
of Feb. 1, 1954, p. 167.

June 27, J 954

963

The other members of the United States Na-
tional Commission are Sinclair Weeks, Secretary
of Commerce; William T. Faricy, President of
the Association of American Railroads; Charles
D. Mahaffie, member of the Interstate Commerce
Commission; James C. Lyne, Editor of Railway
Age; George P. Baker, Professor of Transporta-
tion, Harvard Graduate School of Business Ad-
ministration; James M. Hood, President of the
American Short Line Railroad Association; and
Arlon E. Lyon, Secretary of the Railway Labor
Executives Association.

U.S. Assessment for WHO Budget

Follotoing is the text of a letter dated May 28
from Thi-u.'iton B. Morton, Assistant Secretary for
Congressional Relations, to Senator Alexander
Wiley, Chairman of the Senate Committee on
Foreign Relations: ^

Dear Senator Wiley : Enclosed is a statement
concerning the action of the Seventh World
Health Assembly, just completed, on the budget of
the Organization for 1955. which has been re-
quested by Mr. Carl Marcy of your staff. The
World Health Organization budget, as you know,
results in a United States assessment for 1955 be-
yond the existing statutory ceiling of $3 million.
I hope this will meet your needs. We shall be
glad to supply any further information that you
may desire. '

Sincerely yours,

Thruston B. Morton,

Assistant Secretary.

1955 Budget of the World Health Organization

AND THE United States Assessment

At the Seventh World Health Assembly, re-
cently concluded in Geneva, Switzerland, the
World Health Organization (Wiio) approved a
total assessment for the calendar year 1955 of
$10,049,360 as compared with the 1954 figure of
$8,963,000. The United States delegation made
every effort at every stage of the proceedings in the
assembly to hold the budget to a figure not exceed-
ing $9 million, and the United States voted against
the budget as passed.

As a result of the assembly's action, the assess-
ments of all member countries in the World
Health Organization (some 80 countries) will be
increased. The United States assessment for
1955, which is 331/^ percent of the total, will
amount to approximately $3,348,000, or $348,000
in excess of the existing statutory limit of $3 mil-

^ Reprinted from Cong. Rec. of June 2, p. 7066.

lion on our annual contributions to the regular
budget of the World Health Organization. Since
any United States payment to the World Health
Organization for calendar year 1955 will be made
from United States fiscal year 1956 funds, the ac- \
tion of the health assembly will not affect appro- j
priations for fiscal year 1955. Therefore there is '
ample time for a thorough consideration by the i
Congress of tlie proper action to be taken in regard
to the United States contribution to this organ-
ization.

LTnitcd States participation in the World
Health Organization was authorized by Public
Law 643, 80th Congress, as amended by Public
Law 806. 81st Congress, after review and appi'oval
by botli Houses of the Congress. Since this legis-
lation, as amended, contains the statutory limita-
tion mentioned above, it will not be possililc for
the United States to meet that portion of the
assessment which exceeds $3 million without fur-
ther amendment of this legislation, and such
amendment would require ajjproval by both
Houses of the Conjrrefs.

The assessment budget of $10,049,360 finally
adopted by the health assembly was about half-
way between tlie figure of $0 million proposed by
the Ignited States and the figure of more than
$11,000,000 which had been proposed bv the direc-
tor general and the executive board. The United
Slates strongly opposed any budget that would
carry the LTnited States assessment over the statu-
tory limitation of $3 million. However, at the
committee stage the United States delegation's
proposal of a $9 million budget failed by a vote of
24 in favor, 38 against, with 4 abstentions. The
United States reintroduced its proposal in the
plenary session with no better result. At the com-
mittee stage the assembly in fact approved the
more than $11,000,000 requested liy the director
general b}' a narrow vote, l)ut in tiie jilenary ses-
sion it was possible to overturn this action, and a
compromise figure of $10,049,360 was carried by a
vote of 28 in favor, 24 opposed including the
United States, and 7 abstaining.

The attitude of the majority who took this deci-
sion was that the World Health Organization had
exercised noteworthy economy and restraint in its
whole fiscal policy and for 3 years the World
Health Organization assessment budget had, un-
der United States pressure, been kept at a]iproxi-
mately $0 million on account of the Ignited States
ceiling. These governments considered that some
amount of growth in the size of the World Health
Organization's health programs was necessary and
timely. Not only are other governments contrib-
uting two-thirds of the regular budget of the
World Health Organization, but those who are
receiving World Health Organization assistance
contribute in addition sizable sums toward the
implementation of the projects within their re-
spective countries. These governments felt that

964

Department of Sfafe Bulletin

i the efforts being made to meet international health
needs justified additional expenditures on the part
of the total membership of the organization.
I The legislative history of the statutory ceiling
' on the United States contribution to the World
Health Organization indicates that the Congress
did not intend to freeze for all time the amount
this Government might find it in the national in-
terest to provide for the support of the World
Health Organization. The record indicates that
the intent of the Congress was to regularize the
means by which it might review and reassess the
program and objectives of the organization and
the results of our participation therein.

In 1947, the Congress placed a ceiling of $1,-
920,000 on the United States contribution to the
World Health Organization in the joint resolution
i which authorized United States membership in
I the World Health Organization. When the
' World Health Organization undertook larger re-
sponsibilities which called for a larger contribu-
tion from the United States in 1950, the Congress
i inquired into the organization's program and de-
velopment and determined that an increase in the
ceiling was justified and in the United States in-
terest. In the light of the known circumstances at
that time, the ceiling was fixed at $3 million.

The representatives of the United States at the

session of the health assembly just concluded, made

i clear the fact that tliere is a legislative ceiling and

that it is for Congress to determine whether or

not that ceiling is to be revised.

TREATY INFORMATION

Current Actions

MULTILATERAL

Cultural Relations

Aureemeut for facilitating the international circulation of
visual and auditory materials of an educational,
scientitic and cultural character, and protocol. i Opened
for signature at Lake Success July 15, 1049.
Acceptance deposited: Haiti, May 14, 1054.

Postal Matters

luiversal postal convention, with final protocol, annex,
regulations of execution; and provisions regarding air-
mail and final protocol thereto. Signed at Brussels
July 11, 1052. Entered into force July 1, 1953.
TIAS 2800.
Ratifications deposited: Netherlands (applicable also to

New Guinea, Surinam, and Netherlands West Indies),

April 29, 1954; Australia, May 3, 1954.

Trade and Commerce

International convention to facilitate the importation
of commercial samples and advertising material.^
Dated at Geneva November 7, 1952.
Accession deposited: Indonesia, April 21, 1954.

Third protocol ' of rectifications and modifications to texts
of the schedules to the General Agreement on Tariffs
and Trade. Done at Geneva October 24, 1953.
Signature: Cuba, May 27, 1954.

China

BILATERAL

' Not in force.

Agreement relating to the loan of small naval craft to
China. Effected by exchange of notes at Taipei May 14,
1954. Entered into force May 14, 1954.

Japan

Agreement for the loan of United States naval vessels
to Japan. Signed at Tokyo May 14, 1954. Enters
into force upon ratification by Japan.

Foreign Relations Volumes

1936, Volume V, American Republics

Press release 272 dated May 21

The Department of State on May 29 released
Foreign Relations of the United States, 1936, Vol-
ume V, The American Republics. Besides dealing
with multilateral aspects of economic and political
questions involving the United States and other
American Republics, this volume includes also
correspondence on the bilateral relations between
the United States and the Governments of nine-
teen American Republics.

Of chief interest in the record on multilateral
negotiations are (1) the preliminary documenta-
tion on the inter-American Conference for the
Maintenance of Peace held at Buenos Aires; (2)
correspondence on the Chaco Peace Conference
which achieved agreement of Bolivia and Para-
guay to a protocolized act putting into effect rec-
ommendations of the Conference, and resumption
of diplomatic relations between the two former
belligerents. Other subjects in the multilateral
category concern a Department of State decision
with reference to the 1923 Central American
Treaty of Peace and Amity, defaulted foreign se-
curities held by American citizens, and construc-
tion of the Inter- American Highway.

More than two-thirds of the correspondence on
bilateral relations is concerned with commercial
and financial topics, particularly with the recipro-
cal trade-agreements program. Reciprocal trade
agreements were signed with Costa Rica, Guate-
mala, and Nicaragua. Preliminary discussions
respecting possible trade agreements were held
with five other American Governments. Nego-

June 21, 1954

965

tiations for provisional commercial agreements
with Chile and Ecuador were also underway.
There were, too, efforts to terminate the financial
control exercised by the United States m Haiti
under a 1933 agreement. The adverse effect upon
American interests of exchange restrictions m sev-
eral countries was of concern to the State Depart-
ment as were proposed provisional commercial
acrreements involving Brazil, Germany, and Italy.

The record on relations with Mexico covers such
issues as expropriation of lands owned by Amer-
ican citizens, and the religious situation in Mexico

Volume F, The American Republics, is the last
to be issued in the series of five Foreign Relatiom_
volumes for the year 1936. Copies of Volume V
(XCV -992 pp.) may be purchased from the
Superintendent of Documents, U.S. Government
Printing Office, Washington 25, D.C., for $4.50
each.

1937, Volume II, British Commonwealth, Europe,
Near East, Africa

Press release 290 dated May 28

The Department of State on June 5 released
Foreign Relations of the United States, 19o7,
Volume //, The British Commomoealth, Europe,
Near East and Africa. This is the first of the
series of five volumes of diplomatic correspondence
to be published for the year 1937. The other four
volumes will be released during the next few

months. ^ i • n •

Prominent among the subjects treated m this
volume are the efforts of the Department of State
to promote more liberal trade policies by discus-
sions looking to the conclusion of reciprocal trade
ao-reements and representations against discrimi-
nating practices damaging to American commerce.
Secretary of State Cordell Hull conceived his
trade agreements program not merely as a means
for promoting American business but as one im-
portant instrument that would help maintain in-
ternational peace. In a memorandum which he
handed to the British Ambassador on January 17,
1937, it was stated that cooperation by the United
States with Great Britain for world peace and
national security "must necessarily be premised
upon the positive understanding that the Govern-
ment of Great Britain is in fact disposed to take
part in a practical manner in advancing the cause
of world peace by cooperating in turn with the
United States in its endeavor to bring about the
elimination of those restrictions which today are
stifling legitimate international trade." (p. 2)
Mr. Hull was much concerned with respect to
British-Canadian trade negotiations which he
looked upon as a move backward toward national-
istic economic policies. Discussions for trade
agreements with the United Kingdom and Canada
continued throughout the year. (pp. 1-9-4; 160-
168 ) . Final agreements were not signed until No-

966

vember 17, 1938. Other countries with which ac-
tive trade discussions are recorded for 1937 are
Australia, New Zealand, Belgium, Czechoslovakia,
Estonia, France, Germany, Greece, Italy, Lith-
uania, Norway, Poland, Switzerland, Iraq, Li-
beria, and Turkey. .

Two projects for international cooperation with
Canada documented in this volume were those for
the St. Lawrence Waterwav (pp. 168-176) and the
Alaskan Highway (pp. 191-198).

A number of issues tended to strain relations i
with the Nazi Government of Germany in 1937.
Persecution of Jews continued with additional re-
strictive measures being applied, (pp. 319-327)
Trade relations were unsatisfactory, (pp. 327-
348) The German Government made representa-
tions against derogatory remarks by Mayor La
Guardia of New York about Hitler, (pp. 367-377)
While regret was expressed that remarks should
have been made which gave offense, Mr. Hull told
the German Ambassador, Hans Luther, that if his
Government wanted to be a tremendous factor in
electing American officials it could easily do so by
coming to the United States Government with
such complaints, (p. 374) Ambassador William
E. Dodd likewise told the German Foreign Office:
'•if the German press wish to see La Guardia re-
elected Mayor of New York on a huge majority,
they have onlv to continue taking notice of what
he says and is free to say." (p. 37.5) Later in the
year, the German Ambassador complained of
utterances of Ambassador Dodd and was informed
that Mr. Dodd would soon relinquish his post.
He was replaced as Ambassador by Hugh Wilson,
(pp. .377-385)

Among many matters of diplomatic concern in
the Near East recorded in this volume were the
Montreux Conference for the abolition of capitu-
lations in Eg^'pt, the withdrawal of American
diplomatic and consular representatives from
Etliiopia. wliicli was under Italian occuiiation, the
grant of an oil concession by the Iranian Govern-
ment to the Amiranian Oil Company, proposed
abolition of capitulatory rights of the United
States in the French Zone of Morocco, and interest
of the United States in British ])roposals for the
partition of Palestine between Arabs and Jews.

Documentation on the Spanish Civil War for
1037 is ])rinted with other multilateral questions
in Volume I to be issued shortly. The record on
relations with the Soviet Union for that year has
alreadv been published in Foreign Relatiom of the
United States, The Soviet Union, 1933-1939.

Designations

Effective May 26, C. Biirke Elbrick is desifmated gen-
eral Deputy Assistant Secretary for European Affairs,
Walworth 'Barbour is designated a Deputy Assistant
Secretary for European Affairs, and Ray L. Tliurston is
designated Director of tlie Office of Eastern European

Affairs. . t, -u

William P. Hughes as Director, Office of Foreign Build-
ings Operations, effective May 24.

Department of State Bulletin

June 21, 1954 Index

- American Principles. International Unity (Dulles) . . . 935

\ American Republics. Benefits Extended to OAS .... 951

Brazil. Sale of Ships to Brazil (Nolan) 951

Canada

Saint Lawrence Seaway Development Corporation . . . 959

U.S. and Canada Inaugurate Niagara Falls Remedial

Project (Slezak, LeSage, McWhorter, McNaughton) . 954

China. Discussions Concerning Americans Detained in

Communist China 949

Cong:ress, The

Current Legislation 953

n U.S. Assessment tor WHO Budget (Morton) 964

,\ Economic Affairs
A Progress Report on Spanish-American Cooperation

(Dunn) 960

Saint Lawrence Seaway Development Corporation . . . 959

Sale of Ships to Brazil (Nolan) 95I

Shipment of Seed to Iraq 962

U.S. and Canada Inaugurate Niagara Falls Remedial

Project (Slezak, LeSage, McWhorter, McNaughton) . 954

France

Memorial Day Observance at Cherbourg 959

Significance of Allied Landing in Normandy (Eisenhower) . 959

Gnatemala. U.S. Policy on Guatemala (Dulles) .... 950

Indochina

Negotiations at Geneva (Dulles) 947

U.S. Views on Communist Proposals at Geneva (Smith) . 940

International Information. Negotiations at Geneva

(Dulles) 947

International Organizations and Meetings

Discussions Concerning Americans Detained In Communist

China 949

Mr. Holland Appointed to Railway Congress Commission . 963

International Unity (Dulles) 935

U.S. Assessment for WHO Budget (Morton) 964

U.S. Views on Communist Proposals at Geneva (Smith) . 940

Iraq. Shipment of Seed to Iraq 962

Korea

Negotiations at Geneva (Dulles) 947

U.S. Views on Communist Proposals at Geneva (Smith) . 940

Mutual Security. A Progress Report on Spanish-American

Cooperation (Dunn) ggo

Presidential Documents

Benefits Extended to OAS 95I

Saint Lawrence Seaway Development Corporation . . . 959

Significance of Allied Landing in Normandy 959

Protection of Nationals and Property. Discussions Concern-
ing Americans Detained in Communist China . . . 949

Publications. Foreign Relations Volumes 965

Vol. XXX, No. 782

Spain. A Progress Report on Spanish-American Coopera-
tion (Dunn) ggo

State, Department of. Designations (Barbour, Blbrick,

Hughes, Thurston) .' ggg

Treaty Information. Current Actions 965

United Nations. U.S. Presents Argument in U.N. Award

Case 963

Name Index

Barbour, Walworth goe

Dulles, Secretary 935,947,950

Dunn, James Clement 96O

Eisenhower, President 951 959

Elbrick, Burke '966

Holland, Henry F 963

Hughes, William P 966

Johnson, W. Alexis 950

LeSage, Jean ggg

Lodge, Henry Cabot, Jr 959

McNaughton, A. G. L gsg

McWhorter, Roger B 957

Morton, Thruston B 964

Nolan, Charles P ggj

Slezak, John 954

Smith, Walter Bedell . . . . 940

Thurston, Ray L ' 966

Check List of Department of State
Press Releases: June 7-13

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

Press releases issued prior to June 7 which appear
in this issue of the BtTLLBTiN are Nos. 272 of May 21
290 of May 28, 296 of June 3, and 301 of June 5.

Subject

Key : Fresh look at the U.N.

Foreign Relations volume

Educational exchange

Nolan: Sale of vessels to Brazil

Educational exchange

Dulles: Geneva talks on Korea

Dulles : Guatemala

Murphy: Fordham commencement

Dulles : Talks on Indochina

U.N. awards case

Wainhouse : H-bomb age

Smith : Geneva statement

Dulles : International unity

German war documents volume

Dulles : The Pacific Ocean

* Not printed.

t Held for a later issue of the Bulletin.

No.

Date

t304

6/7

t30.5

6/7

*306

6/7

307

6/8

*308

6/8

309

6/8

310

6/8

t311

6/9

312

6/8

313

6/10

t314

6/10

315

6/10

316

6/10

t317

6/12

t318

6/11

U S, 60VERNUEHT PRINTING OFFICE: I9S4

United States
Government Printing Office

DIVISION OF PUBLIC DOCUMENTS

Washington 25, D. C.

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Enclosed find:

Foreign Relations of the United States . . .

the basic source of information on U.S. diplomatic history

1937, Volume I, General

The growing threat of a general European War and the
Civil War in Spain form the subject matter of the greater part
of the documentation printed in this volume. As in the volumes
for earlier years, the United States appears in a role of neu-
trality and nonintervention but indication of a possible shift
of policy appears with President Roosevelt's "quarantine
speech" at Chicago on October 5.

Technically there was no war in Europe in 1937, even the
fighting in Spain not being recognized as such, but, as Francois-
Poncet, French Ambassador to Germany, remarked to Ambas-
sador William C. Bullitt at Paris, "nations no longer waged
war; they waged peace."

Other documentation in this volume deals with a number of
general and multilateral problems.

Copies of Foreign Relations of the United States, 1937,
Volume I, General, may be purchased from the Superintendent
of Documents, Government Printing Office, Washington 25,
D, C, for $4.25 a copy.

Please send me copies of Foreign Relations of the United States,

1937, Volume I, General.

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<jAe' ^e/hct^im^rnvt/ m' t/tcde'

Vol. XXX, No. 783
June 28, 1954

^ent o«.

ates

SECURITY IN THE PACIFIC • Address by Secretary

Dulles 971

INITIATION OF RECOMMENDATIONS IN WRISTON
REPORT 1002

A FRESH LOOK AT THE UNITED NATIONS • by

Assistant Secretary Key "•"

PEACE AND SECURITY IN THE H-BOMB AGE • by

Deputy Assistant Secretary Wainhouse "83

ANTICIPATED INCREASE IN REFUGEE MIGRATION

FOR 1954 AND 1955 • Article by George L. Warren ... 994

For index see inside back cover

Hoston Public Library
Superintcirlent of Documents

AUG 9 - 1954

^Ae ^e/ici'iil^e'nt c/ t/la^e

■■•»..«>'

bulletin

Vol. XXX, No. 783 • Publication 5522
June 28, 1954

For sale by the Superintendent of Documents

U.S. Qovernment Printing OfBce

Washington 25, D.C.

Peice:

62 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents

The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).

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

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, 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 BULLETI1\ 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
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
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.

Security in the Pacific

Address hy Secretary Dulles ^

It seems appropriate here to speak of the Pacific
Ocean. That is responsive to my deep interest
derived both from inheritance and experience.
My grandfather, as Secretary of State, negotiated
the first Hawaiian Annexation Treaty, and then
he negotiated peace between China and Japan.
In the last 4 years, I have dealt with the Pacific
area in connection with the Japanese peace treaty
and the security treaties with Australia, New
Zealand, the Philippines, and Japan, and in rela-
tion to Korea. These missions have involved my
crossing the Pacific 12 times.

Looking Westward

For approximately 100 years, between 1830 and
1930, the United States had generally friendly
relations with the nations on the other side of this
vast ocean, and we faced no threat from that
direction.

Since 1930 there has been a change for the worse.
The economic depression of 1929-30 cut Japan's
foreign trade in half. It gave the Japanese ex-
tremists a chance to press their program for ex-
tending the Japanese Empire. In 1931, Japanese
aggi-ession began in Manchuria.

Our Government saw the serious implications
of that move. Secretary of State Stimson pro-
posed to other countries that there should be united
action to restrain Japanese aggression. The an-
swer, in Secretary Stimson's own words, was "a
plain rebuff." Matters went from bad to worse
until finally there came Pearl Harbor and the
Japanese sweep through Southeast Asia and the
Western Pacific.

It took 4 years of terrible war to reverse that
situation. Now, happily, the island positions in
the Pacific, for the most part, are no longer in
hostile hands. Japan is a friendly power. How-
ever, on the mainland the situation is different.

' Made before the Los Angeles World Affairs Council at
Los Angeles, Calif., on June 11 (press release 318).

When the Japanese surrender occurred, the
Russian Red armies were allowed to penetrate
deeply into China and Korea to accept the sur-
render of Japanese forces. Also, the Soviet Gov-
ernment took over the Manchurian railroads and
Port Arthur and the Japanese northern islands,
as had been agi-eed at Yalta. But, in violation of
its express agreement, the Soviet gave vast Jap-
anese war supplies to the Chinese Communist
forces, so that, by the end of 1949, they had
gained control of substantially all of the China
mainland.

In June 1950 the Communists from North Korea
opened their military aggression, and in Novem-
ber 1950 the Chinese Communist regime launched
its massive attack against the forces of the United
Nations engaged in repelling the Korean aggres-
sion.

Also, the Chinese Communist regime has stead-
ily increased material and technical aid to the
Communist forces fighting in Indochina. Now, at
Geneva, the Chinese Communist delegation at-
tacks the United States with venomous words and
boldly charges the United Nations itself with being
a tool of aggression.

Today, the vast Pacific is a friendly ocean only
because the West Pacific islands and two penin-
sular positions are in friendly hands. Thus, the
United States itself holds Okinawa, Guam, and
other islands. Also we have security or defense
arrangements covering the Philippines, Australia,
New Zealand, Korea, Formosa, and Japan. We
are giving supplies to the French Union forces in
Indochina. But close behind this island and pen-
insular screen lies a mainland with many hundreds
of millions of people under a despotic rule that
is fanatically hostile to us and demonstrably ag-
gressive and treacherous.

Japan

One problem which must particularly concern
us is the economy of Japan, a chain of rocky
islands whose area is about that of California.

June 28, 1954

971

Japan's population, now grown to 87 million,
depends for its livelihood upon foreign trade.
Trade is offered by the Communists — at a price.
The price is that Japan — the only industrial power
in Asia — should cease to cooperate with the United
Nations and with the United States as it is now
doing and should become a workshop where the
abundant raw materials of Asia can be converted
into implements for Communist use against the
free world. Japan must trade to live, and if the
free nations fail to make it possible for Japan
to earn its way, then inevitaoly, though reluc-
tantly, her people would turn elsewhere. This
would be stupid from an economic standpoint and
folly from a political standpoint. Japan is an ex-
cellent customer for our cotton, wheat, and rice.
From a political standpoint it requires little im-
agination to visualize what would happen if Rus-
sia, China, and Japan became a united hostile
group in the Pacific.

It was difficult enough for the United States to
defeat Japan when Japan fought alone in the
Pacific with China its enemy and Russia neutral.
The free world must shun economic policies which
would press Japan into becoming the ally or the
tool of Communist China and Soviet Russia.

Indochina

At the moment, Indochina is the area where
international communism most vigorously seeks
expansion under the leadership of Ho Chi-Minh.
Last year President Eisenhower, in his great
"Chance for Peace" address, ^ said that "aggres-
sion in Korea and Southeast Asia are threats to
the whole free community to be met by united
action." But the French were then opposed to
what they called "internationalizing" the war.
They preferred to treat it as a civil war of re-
bellion. However, on July 3, 1953, the French
Government made a public declaration of inde-
pendence for the three Associated States, and in
September it adopted the so-called Navarre plan,
which contemplated a rapid buildup of national
native forces. The United States then agreed to
underwrite the costs of this plan.

But last winter the fighting was intensified and
the long strain began to tell in terms of the atti-
tude of the French people toward a war then in its
eighth year. Last March, after the siege of Dien-
Bien-Phu had begun, I renewed President Eisen-
hower's proposal that we seek conditions which
would permit a united defense for the area. I
went to Europe on this mission, and it seemed
that there was agreement on our proposal. But
when we moved to translate that proposal into
reality, some of the parties held back because
they had concluded that any steps to create a

= BtrixBrm of Apr. 27, 1953, p. 699.

united defense should await the results of the
Geneva Conference.

Meanwhile, the burdens of a collective defense
in Indochina have mounted. The Communists
have practiced dilatory negotiating at Geneva,
while intensifying their fighting in Indochina.
The French and national forces feel the strain of
mounting enemy power on their front and of po-
litical uncertainty at their rear. I told the Senate
Foreign Relations Conimittee last week that the
situation is grave but by no means hopeless.' The
future depends largely on decisions awaited at
Paris, London, and Geneva.

The situation in Indochina is not that of open
military aggression by the Chinese Communist
regime. Thus, in Indochina, the problem is one
of restoring tranquillity in an area where dis-
turbances are fomented from Communist China,
but where there is no open invasion by Com-
munist China. This task of pacification, in our
opinion, cannot be successfully met merely by
unilateral armed intervention. Some other con-
ditions need to be established. Throughout these
Indochina developments, the United States has
held to a stable and consistent course and has made
clear the conditions which, in its opinion, might
justify intervention. These conditions were and
are (1) an invitation from tlie present lawful au-
thorities; (2) clear assurance of complete inde-
pendence to Laos, Cambodia, and Viet-Nam; (3)
evidence of concern by the United Nations; (4) a
joining in the collective effort of some of the other
nations of the area ; and (5) assurance that France
will not itself withdraw from the battle until it
is won.

Only if these conditions were realized could the
President and the Congress be justified in asking
the American people to make the sacrifices inci-
dent to committing our Nation, with others, to
using force to help to restore peace in the area.

Another problem might, however, arise. If the
Chinese Communist regime were to show in Indo-
china or elsewhere that it is determined to pursue
the path of overt military aggression, then the
situation would be different and another issue
would emerge. That contingency has already
been referred to publicly by the President and
myself. The President, in his April 16, 1953, ad-
dress, and I myself, in an address of September 2,
1953,'* made clear that the United States would
take a grave view of any future overt military
Chinese Communist aggression in relation to the
Pacific or Southeast Asia area. Such an aggres-
sion would threaten island and peninsular posi-
tions which secure the United States and its allies.

If such overt military aggression occurred, that
would be a deliberate threat to the United States
itself. The United States would of course invoke

* For text of the Secretary's testimony, see iMd., June 14,
1954, p. 921.

* IMd., Sept. 14, 1953, p. 339.

972

Department of State Bulletin

the processes of the United Nations and consult
with its allies. But we could not escape ultimate
responsibility for decisions closely touching our
own security and self-defense.

There are some, particularly abroad, who seem
to assume that the attitude of the United States
flows from a desire for a general war with Com-
munist China. That is clearly false. If we had
wanted such a war, it could easily have been based
on the presence of Chinese aggressors in Korea.
But last July, in spite of difficulties which at times
seemed insuperable, we concluded a Korean armi-
stice with Communist China. How could it be
more surely demonstrated that we have both the
will to make peace and the competence to make
peace?

Your Government wants peace, and the Ameri-
can people want peace. But should there ever
be openly launched an attack that the American
people would clearly recognize as a threat to our
own security, then the right of self-preservation
would demand that we — regardless of any other
country — meet the issue squarely.

It is the task of statesmanship to seek peace and
deter war, while at the same time preserving vital
national interests. Under present conditions that
dual result is not easy to achieve, and it cannot be
achieved at all unless your Government is backed
by a people who are willing, if need be, to sacri-
fice to preserve their vital interests.

At the Geneva Conference I said : "Peace is al-
ways easy to achieve — by surrender." Your Gov-
ernment does not propose to buy peace at that
price. We do not believe that the American peo-
ple want peace at that price. So long as that is
our national will, and so long as that will is backed
by a capacity for effective action, our Nation can
face the future with that calm confidence which
is the due of those who, in a troubled world, hold
fast that which is good.

U.S., Philippines To Discuss
Mutual Defense Matters

Press release 325 dated June 15

Secretary Dulles and Carlos P. Komulo, per-
sonal representative of President Magsaysay of
the Philippines, agi-eed on June 15 to establish a
Council consisting of the Secretary of State or his
deputy and the Philippine Secretary of Foreign
Affairs or his deputy to provide facilities for dis-
cussions of matters of mutual concern arising un-
der the United States-Philippine Mutual Defense
Treaty. Each member of the Council will be as-
sisted by military representatives. Either party
may request meetings whenever there is a need for
consultation. The time and place of such meetings
will be determined by mutual agreement.

Lt. Gen. Jesus Vargas, Philippine Armed Forces
Chief of Staff, who is presently in Washington
conferring with representatives of the U.S. De-
partment of Defense, participated in the discus-
sions held on June 15 between Ambassador Rom-
ulo and the Secretary of State.

Geneva Declaration on Korea

Press release 324 dated June 15

Following is the text of the 16-nation Declarer
tion on Korea issued at Geneva on Jv/ne 15:

Pursuant to the resolution of August 28, 1953,
of the United Nations General Assembly,^ and the
Berlin communique of February 18, 1954,^ we, as
nations who contributed military forces to the
United Nations Command in Korea, have been
participating in the Geneva Conference for the
purpose of establishing a united and independent
Korea by peaceful means.

We have made a number of proposals and sug-
gestions in accord with the past efforts of the
United Nations to bring about the unification,
independence, and freedom of Korea ; and within
the framework of the following two principles
which we believe to be fundamental.

1. The United Nations, under its Charter, is
fully and rightfully empowered to take collective
action to repel aggi-ession, to restore peace and
security, and to extend its good offices to seeking
a peaceful settlement in Korea.

2. In order to establish a unified, independent
and democratic Korea, genuinely free elections
should be held under UN supervision, for repre-
sentatives in the national assembly, in which rep-
resentation shall be in direct proportion to the
indigenous population in Korea.

We have earnestly and patiently searched for
a basis of agreement which would enable us to
proceed with Korean unification in accordance
with these fundamental principles.

The Communist delegations have rejected our
every effort to obtain agreement. The principal
issues between us, therefore, are clear. Firstly, we
accept and assert the authority of the United
Nations. The Communists repudiate and reject
the authority and competence of the United Na-
tions in Korea and have labelled the United Na-
tions itself as the tool of aggression. Were we to
accept this position of the Communists, it would
mean the death of the principle of collective se-
curity and of the UN itself. Secondly, we desire
genuinely free elections. The Communists insist
upon procedures which would make genuinely free
elections impossible. It is clear that the Commu-
nists will not accept impartial and effective super-
vision of free elections. Plainly, they have shown

' Bui.iJCTiN of Sept. 14, 1953, p. 366.
'Ibid., Mar. 1. 1954, p. 317.

iune 28, 1954

973

their intention to maintain Communist control
over North Korea. They have persisted in the
same attitudes which have frustrated United Na-
tions efforts to unify Korea since 1947.

We believe, therefore, that it is better to face the
fact of our disagreement than to raise false hopes
and mislead the peoples of the world into believing
that there is agreement where tliere is none.

In the circumstances, we have been compelled
reluctantly and regretfully to conclude that so
long as the Communist delegations reject the two
fundamental principles which we consider indis-
pensable, further consideration and examination
of the Korean question by the conference would
serve no useful purpose. We reaffirm our con-
tinued support for the objectives of the United
Nations in Korea.

In accordance with the resolution of the General
Assembly of the United Nations of August 28,
1953, the member states parties to this declaration
will inform the United Nations concerning the
proceedings at this conference.

Thailand's Request for
Peace Observation Mission

Following are the te.rt.<t of (1) a statement hy
Secretary Dvlles on the Soviet veto of the Thm
proposal, {2) a statem-ent made before the Se-
curity Council iy Ambassador Henry Cahot
Lodge, Jr., U.S. representative to the United Na-
tions, on the proposal, and (3) the Thm draft
resolution:

STATEMENT BY SECRETARY DULLES, JUNE 18

Press release 331 dated June 18

It is deeply to be regretted that the Soviet Union
should have cast its 59th veto in the Security
Council today to prevent Thailand from having a
United Nations peace observation mission. A
peace observation mission has no authority to take
decisions. It is merely the eyes and ears of the
United Nations through which it and the whole
world can know the facts as to what is going on
in an area of tension. This denial to a small and
peaceful nation— and one of the members of the
United Nations — of the right to get even this
minimum protection is one more example of the
emptiness of the Soviet professions of peaceful
purpose. The veto confirms our fear that it is the
Communist forces which want to shroud in dark-
ness their deeds in this area.

STATEMENT BY AMBASSADOR LODGE, JUNE 16

U.S./U.N. press release 1921 dated June 16

Let me present the views of the United States
Government with regard to the request of the
Government of Thailand that a subcommission of
the Peace Observation Commission be sent to its
territory.

It is the view of the United States that it would
be prudent and highly desirable to authorize the
Peace Observation Commission to observe devel-
opments in the area of Thailand in order to pro-
vide the United Nations with independent reports
on the danger to international peace and security
caused by the conflict in Indochina.

In his lucid statement made at our last meeting,
the distinguished representative of Thailand has
established beyond any doubt or argument that
the tension in the area of Thailand presents a
serious threat to the peace and security of his
country. The fierce struggle in the jungles and
deltas of Indochina may seem remote and distant.
But the danger it presents to Thailand and the
rest of Southeast Asia is close and immediate —
and in all truth the world has grown so small that
no place is any longer really "far away" from any
other.

In the interest of speed and to avoid making
unnecessary statements, I sliall not take tlie time
to review the origin and present status of the con-
flict in Indochina. The facts are so clear that no
amount of propaganda can conceal this latest
attempt of Communist imperialism to subjugate
I'jeace-loving peoples whose only ''crime," so called,
is their desire to live in freedom and to shape their
own destiny.

As the representative of Thailand has shown,
there has been a distinct possibility of incursions of
foreign military forces into Thai territory in con-
nection with engagements wliich have taken place
near the Thai border. This danger continues. It
may, in fact, have increased now that the Viet
Minh forces have been equipped with foreign arms
of the most modern kind. They now have a
greater capability for heavy assault and rapid
movement.

Moreover, Thailand has been the target of false
propaganda of a kind that all too often in the past
has been used to justify and prepare the way for
acts of aggression. Communist propaganda and
political agents have been utilized to promote anti-
Thai activities among the sizeable groups of refu-
gees who have found sanctuary in the border
regions of Thailand. As the representative of
Thailand has indicated, these activities have been
linked directly with the invasions of Laos and
Cambodia. The threat to Thailand presented by
these military, propagandistic, and political
actions is, therefore, real and continuing.

We have under consideration, accordingly, pre-
cisely the kind of situation for which the Peace

974

Department of State Bulletin

Observation Commission was created. It cannot
be disputed that — quoting the words from the
Uniting for Peace Resolution^ — ". . . there
exists [in the area] international tension the con-
tinuance of which is likely to endanger the main-
tenance of international peace and security." The
United States Government, accordingly, strongly
supports the request of the Government of Thai-
land and urges this Council to act with all possible
speed to authorize the Peace Observation Com-
mission to send observers to Thailand.

The resolution which the representative of
Thailand has just presented to this Council ap-
pears to have been drafted with the greatest care.
It addresses itself to the condition of international
tension which exists in the general region in which
Thailand is located. The resolution appears to us
to be utterly devoid of controversial matter. Its
objective is simply to enable a subcommission of
the Peace Observation Commission to dispatch
observers to Thailand and itself to visit that na-
tion in order to determine the facts and report on
them.

Since the threat to Thailand originates beyond
its borders, the resolution authorizes the subcom-
mission, if it considers it necessary for the accom-
plishment of its mission to observe in other states
in the area, to so report to the Peace Observation
Commission or to the Security Council with a
view to obtaining further instructions. On this
basis, the Peace Observation Commission or the
Security Council would be in a position to author-
ize the subcommission to extend the area of obser-
vation to other parts of the region. This is a
proper and essential component of the resolution.
Without this provision, the subcommission might
be prevented from ascertaining the very infor-
mation necessary to any appraisal of the situation
which we may be called upon to make. In short,
it is impossible for us to see how any member of
this Council can find any basis for objection or
reservation with regard to the proposal suggested
by the representative of Thailand. I therefore
request, under Rule 38 of our Rules of Procedure,
that at the appropriate time this resolution be put
to the vote.

I urge the members of this Council not to per-
mit themselves to be diverted from the simple but
urgent issue which is before us. We are not asked,
nor are we required, to make any findings on the
situation in Indochina. We are not asked, and we
should not attempt, to do anything which could
even remotely adversely affect the negotiations
still continuing in Geneva. The United States has
cooperated in the effort to find a basis at Geneva
for a settlement of the Indochina problem which

' Bulletin of Nov. 20, 1950, p. 823.

would restore peace and security in the area and
at the same time recognize the legitimate aspira-
tions of the peoples of Laos, Cambodia, and
Viet-Nam.

All we are asked to do here is to authorize a
factfinding body to proceed to the area where this
tension exists in order that the United Nations
may receive impartial firsthand reports on the
situation. If its reports do not bear out Thailand's
estimate of the danger to international peace, we
shall have discharged our responsibility fully. If,
on the other hand, its reports do bear out this esti-
mate, we shall then be in a position to consider the
danger in the light of all available facts and to do
what we can to avert it.

A loyal member of the United Nations has
appealed to this body to take a simple action in
the interest of its own peace and security. The
action requested lies within the competence of this
Council. Its urgency is manifest. Let us act
promptly and thereby discharge our responsibility
under the Charter to maintain international peace
and security.

THAI DRAFT RESOLUTION >

D.N. doc. S/3220
Dated June 16, 1954

The Security Council

Noting the request of Thailand ;

Recalling General A.ssembly Resolution 377 (V)
(Uniting for Peace), Part A, Section B establishing a
Peace Observation Commission which could observe and
report on the situation in any area where there exists
international ten.sion, the continuance of which is likely
to endanger the maintenance of international peace and
security ;

Taking into consideration the legitimate apprehensions
entertained by the Government of Thailand In regard to
its own security, caused by a condition of international
tension in the general region in which Thailand is lo-
cated, the continuance of which is likely to endanger
international peace and security;

Requests the Peace Observation Commission to estab-
lish a Sub-Commission composed of not less than three
nor more than five Members, with authority :

(a) to despatch as soon as possible, in accordance with
the invitation of the Thai Government, such observers as
it may deem necessary to Thailand ;

(6) to visit Thailand if it deems it necessary;

(c) to consider such data as may be submitted to it
by its Members or observers and to make such reports
and recommendations as it deems necessary to the Peace
Observation Commission and to the Security Council.
If the Sub-Commission is of the opinion that it cannot
adequately accomplish its mission without observation
or visit also in States contiguous to Thailand, it shall
report to the Peace Observation Commission or to the
Security Council for the necessary instructions.

- The draft resolution was vetoed in the Security Coun-
cil on June 18 by the negative vote of the U.S.S.R. The
vote was 9-1 (U.S.S.R.)—! (Lebanon).

June 28, 1954

975

A Fresh Look at the United Nations

hy David McK. Key

Assistant Secretary far United Nations Affairs'^

In responding to the kind invitation of Dr.
Mayo to address you tonight, I have been given my
first opportunity to visit your beautiful and justly
famous state.

I am also taking the opportunity, imknown to
him, to pay tribute on his own home groimd to a
man who played a leading part at the last meeting
of the United Nations General Assembly in dem-
onstrating that the attempted defamation of a
nation's character, no less than that of an individ-
ual, is the concern of every nation and every in-
dividual; that charges which the facts will not
substantiate convict the accuser; and that "a de-
cent respect to the opinions of mankind" as stated
in our Declaration of Independence is still a
cardinal principle of our national and interna-
tional conduct. I refer to the valuable services of
Dr. Mayo to his country in assisting the United
States in the United Nations to disprove, cate-
gorically and utterly, the Communist charges that
the United States Air Force had employed germ
warfare in the Korean war.^

It was not an easy task which confronted the
United States. So fantastic were the Communist
charges as they appeared in the light of scientific
fact that they were ridiculous to any rational man.
Yet they had to be taken seriously because of man-
kind's unfortunate tendency to believe what he
hears if it is repeated often enough. For over 2
years the Communists had used every technique of
propaganda to spread their vicious untruths
around the world. Thus we were confronted with
a mass of false conclusions based on a mass of
fabricated data.

To demolish these charges, Dr. Mayo used the
very weapon against which the Communists have
the least defense, the scientific method, the method
responsible for the pre-eminence of American

'Address made before the Minnesota Medical Associa-
tion, Dulutti, Minn., on June 8 (press release 304 dated
June 7 ) .

"P'or text of Dr. Charles W. Mayo's statement of Oct.
26, 1953, before Committee I of the General Assembly, see
Bulletin of Nov. 9, 1953, p. 641.

medicine, American technology, and American in-
dustry. The skill with which he devastated the
Commimist position made an indelible impression
on those who attended that session of the General
Assembly. He explained, for instance, how the
Communists, in order to create evidence to support
their charges, had deliberately perverted to their
ends the techniques used by the Russian biologist
Pavlov in his experiments on dogs and rats, to
produce a "conditioned reflex" imder which the

Srisoners would automatically respond in a pre-
etermined manner to rehearsed Communist ques-
tions. The Assembly responded by strongly con-
demning these unfounded charges. And, since
the Assembly is, in a sense, a loudspeaker with
many outlets, Dr. Mayo's words echoed around
the world and the falsity of the Communists'
charges was brought home to people everywhere.
This important episode of the last General As-
sembly illustrates how the United Nations as a
world forum can be used to advantage by the
United States and the free world to expose the
vicious propaganda techniques of the Communists.
There are other examples. Against the strenu-
ous objections of the Soviet bloc, we also brought
into the international spotlight a carefully docu-
mented report prepared by three eminent jurists
from India, Norway, and Peru which fully estab-
lished that systems of slave labor are an essential
part of the economy and a means of political coer-
cion in the Soviet Union and its satellites. This
report, coming as it does from objective sources, is
a telling indictment of the police state.

At the same session of the General Assembly our
delegation successfully disproved the false Com-
munist claim that they had abided in Korea by the
Geneva conventions regarding treatment of pris-
oners. We brought the truth about Communist
atrocities in Korea to the attention of the world.
Statements, depositions, and eye-witness accounts
of returned United Nations prisoners of war
proved that the Communists had brutally liqui-
dated countless prisoners and had used physical
and mental torture as a calculated system for ob-

976

Department of State Bulletin

taining military information, alleged "confes-
sions" of guilt, as well as conversion to communism.
I would now like to review with you some other
accomplishments of the United Nations during the
past year from the point of view of America's par-
ticipation and America's national interests. If it
' is not an unbroken record of success, it is far from
a record of failure.

Probably the achievement which has most
meaning to the American people was the armi-
stice in Korea. You will recall that before this
was achieved the fighting had dragged on for
months because the Communists were unwilling
to agree that prisoners must not be forced to
return to the Communist world against their will.
The Communists were finally compelled to give
way before the cumulative pressure of world pub-
lic opinion and the unrelenting moral and mili-
tary force of the United Nations led by the United
States. As a result of the armistice, the fight-
ing came to a halt. The killing and wounding of
American, Korean, and other Allied soldiers
stopped. Aggression had been halted by collective
action through an international organization for
the firet time in history — and this without a
global war. When the Communists finally yielded
and the principle of nonforcible repatriation was
put into practice, the reason for Communist op-
position to this principle became only too clear.
The vast majority of the men who had lived and
fought under communism refused to return to
their countries. In contrast, the overwhelming
majority of Republic of Korea and United Na-
tions soldiers held by the Communists chose to
return to the side of freedom. Wliat a damaging
blow this was to the pretensions of communism!

Neutral Nations Supervisory Commission

Now after nearly a year has passed the armi-
stice, though uneasy, still holds. This is not to
say that there have not been difficulties. One of
the most troublesome has been the persistent Com-
munist efforts to frustrate the operations of the
Neutral Nations Supervisory Commission.

The members of this Commission, you will
recall, are Sweden, Switzerland, Poland, and
Czechoslovakia, and its job is to check on the
observance of the armistice provisions on both
sides of the line. All members of the Commission,
including the two Communist satellite members,
have been given complete access to observe in the
area held by the Republic of Korea and the United
Nations Command, in accordance with the terms
of the armistice. The Communists, on the other
hand, have placed all manner of obstacles in the
way of the Swiss and Swedes to prevent them from
carrying out their observation functions in North
Korea. This situation is summed up in no uncer-
tain terms by the neutral Swiss and Swedish mem-
bers of the Commission. They recently charged
that the Czech and Polish members of the Com-

mission, in falsely alleging armistice infractions
by the United Nations Command, were guilty of
"malicious fabrications, gratuitous distortions,
misleading half-truths, and delusive insinuations
without foundation in reality. The methods re-
sorted to consist largely in isolating facts and
figures from their proper context and in making
sweeping generalizations on the basis of premises
thus distorted."

Moreover, the Swedish and Swiss members con-
cluded that the control activities of the fixed neu-
tral nations inspection teams in Communist-held
territory "are not being carried out satisfactorily
and in full accord with the spirit of the Armistice
Agreement, owing to the restrictive practices im-
posed on the activities of the teams by their
Czechoslovak and Polish members." And yet, in
the face of this disgi'acef ul Communist record, the
Communists at Geneva have had the audacity to
praise the working of this Neutral Nations Super-
visory Commission in Korea and to suggest that
the Poles and the Czechs help to supervise a pos-
sible future armistice in Indochina.

The Communists have been equally noncoopera-
tive at Geneva, where the United States, the Re-
public of Korea, and its United Nations allies have
been seeking to bring about the peaceful unifica-
tion of a free and independent Korea. Molotov,
Chou-en-lai, and their North Korean puppets have
been attacking the United Nations at meeting after
meeting. They have refused to agree to United
Nations supervision of elections in Korea. In-
stead their proposal revolves around an all-Korean
commission which in effect would give the Com-
munists a veto over every decision and would make
free elections impossible. Moreover, they want
this same United Nations Supervisory Commis-
sion, with a built-in veto given to the Poles and
Czechs, to help supervise elections in Korea.

We cannot and will not permit the Communists
to undermine the role of the United Nations in
Korea or to sell the proposition that the United
Nations itself is an aggressor. The Korean war
made a reality of the principle of collective se-
curity against aggression. We do not intend to
accept any proposal which would unify Korea
through undemocratic methods or which would
fail to recognize the legitimate function of the
United Nations in Korea. We will not permit the
Communists to obtain a repudiation of the very
principle for which so many United Nations
members, especially ourselves, have made great
sacrifices.

Another way in which the United Nations can
play a leading role in our search for a better world
is epitomized by President Eisenhower's proposals
before the Eighth General Assembly for the cre-
ation of an international atomic pool devoted to
peaceful purposes. These proposals electrified
the world. Secretary Dulles followed up the
President's address with extended diplomatic talks

June 28, 1954

977

with the Soviets. It is a pity that thus far the
negative attitude of the U.S.S.R. has prevented us
from moving ahead on this vital matter.

I -would also mention on the credit side the Gen-
eral Assembly's formal recognition that Puerto
Rico has attained "a full measure of self-govern-
ment," the report to the Trusteeship Councid com-
mending the United States for its administration
of the Trust Territory of the Pacific Islands, and
the Assembly's resolution encouraging underde-
veloped countries to create economic and political
conditions favorable to private capital investment.

These positive accomplishments or proposals
may take little time to recount, but they reflect
months of painstaking preparation, skillful di-
plomacy, and patient negotiation. They also
demonstrate how tlie United Nations can advance
our own and the free world's interests.

The problems I have been talking about were
not created by the United Nations. They exist in
spite of it. They reflect the tense, contracting, and
interdependent world in which we live. The
United Nations ofl'ers the best hope for solving
these problems.

One of the remarkable things about the United
Nations is its flexibility. It provides not only a
way to repel aggression, as in Korea, but also the
means to detect situations which might eventually
embroil many nations in fighting. The United
Nations has an effective fire-alarm system which
can be used before problems reach a critical, ex-
plosive stage.

The function of this system is dramatized at this
time by the appeal for United Nations observers
which the Government of Thailand made to the
Security Council last week. As you know, Thai-
land, or Siam, borders on two of the Indochinese
states, Laos and Cambodia.

In making his appeal before the Security Coun-
cil, which voted 10-1 to put it on the agenda, the
Ambassador of Thailand said:

. . . tlie situation in territories bordering on Thai-
land has become so explosive and tension is so high that
a very real danger exists that fighting may spread to
Thailand and the other countries of the area and that
foreign troops may effect direct incursions into Thai
territory.

The observer mechanism of the United Nations
has been little publicized, but it has had a com-
paratively long and successful record.

Development of Watchdog System

Let me review how this United Nations watch-
dog system has developed.

GREECE

Actually, the first use and development of the
United Nations observer system in areas of inter-

national tension took place in connection with the
threat of aggression against Greece during the
period of the guerrilla war there from 1947 to 1949.
You may remember that a Commission of Investi-
gation of the Security Council, after several
months of travel and study of the situation on the
spot, had reported that the countries bordering
Greece on the North were illegally giving aid to
the Communist guerrillas in an ffort to overthrow
the legitimate Greek Government. When the re-
peated use of the veto by the Soviets in the Secu-
rity Council prevented action by that body, the
problem of the threat to Greece was taken to the
General Assembly in the fall of 1947. The As-
sembly then created the Special Committee on the
Balkans and empowered it to observe and report
to the United Nations on the disturbed relations
between Greece and its northern neighbors. The
United States was chosen as one of the nine coun-
tries which served on this United Nations Special
Committee. It proceeded immediately in late 1947
to Northern Greece, where its headquarters were
established at Salonika. Adm. Alan G. Kirk, at
that time American Ambassador to Belgium and
subsequently Ambassador to the U.S.S.R., was the
first United States representative on this Special
Committee for the Balkans. This is the same Ad-
miral Kirk who, 10 years ago this month, com-
manded our Navy in the Normandy invasion. '

Admiral Kirk and his colleagues soon recog-
nized that, in order to carry out its duty of obser-
vation and reporting on the situation along the I
nortliern frontiers, the Committee would need the
assistance of trained military personnel in suf-
ficient numbers to permit speedy investigation at J
the scene of frontier incidents or attacks by tlie \
guerrillas. During the most active period of the
guerrilla war, that is in 1948 and 1949, there were
about 35 sucli military observers, furnished by the
United States, the United Kingdom, France, the
Republic of China, the Netherlands, Brazil, and
Mexico.

Under the direction of this United Nations Com-
mittee, the observers operated in teams of three,
each with its own interpreters and radio communi-
cations equipment, at advance stations at key spots
along Greece's northern frontiers from Albania
on the West to Bulgaria on the East, a distance of
nearly 500 miles through mountainous terrain.
From these advance posts the observers made regu-
lar inspection tours along their particular sector
of the frontier. They moved rapidly to investigate
specific incidents or situations as they arose in
order to obtain fresh and timely evidence. In
carrying out their duties several of these observers
were seriously wounded either by escaping Greek
guerrillas or by guards on the other side of the
international frontier. These observers had the
cooperation of Greek Army authorities and gained
the confidence and respect of the people of
Northern Greece, who, seeing the observers in their

978

Deparfmenf of State Bulletin

midst from time to time, had tangible evidence
that the United Nations was doing what it could
to support and encourage their effort to remain
free. Here is a case of the United Nations' being
right on the firing line.

As these observers collected their evidence and
reported it to the United Nations, it became in-
contestable that fullscale externally sponsored
Communist subversion and infiltration of Greece
was under way. Britain and the United States
moved quickly to provide Greece with the military
and economic assistance she required to maintain
her independence. This turned the tide. By 1952
the Balkan Committee withdrew from Greece, but
a handful of United Nations observers under the
Peace Observation Commission have continued to
keep the situation along the northern frontier
under watch. And now, since conditions are tran-
quil, the observers are being withdrawn at Gi'eece's
request.

Looking back at the critical situation confront-
ing Greece, I do not claim that observation and
reporting under the United Nations was the dom-
inant factor in stemming the tide of Communist
expansionism then threatening Greece. Essential
to that task was the military and economic aid
which I have mentioned. Indispensable, of course,
was the courageous resistance and determination
to preserve their national independence exhibited
by the Greek Army and the Greek people in gen-
eral. But it may fairly be claimed that the
arduous and often heroic work performed by the
United Nations observers, and the solid evidence
which they were able to produce as to the true
state of affairs along the frontiers, constituted an
important deterrent against what might other-
wise have been overt and sweeping acts of aggres-
sion against Greece by the Soviet-dominated
countries to the Nortli.

Two other active observer groups operated by
the United Nations stem from the conflicts in
Kashmir and Palestine. These are the United
Nations Truce Supervision Organization for
Palestine and the United Nations Military Ob-
server Group in Kashmir. In both Palestine and
Kashmir the primary function of the observer
groups is to see that the cease-fire agreed to by
the interested parties is maintained.

PALESTINE

Even before the present state of Israel came into
existence, the Truce Supervision Organization for
Palestine was set up in the spring of 1948 in an
attempt to establish and maintain a truce between
Jewish and Arab factions in Palestine. Tlie per-
sonnel for the organization was recruited by the
United Nations from the countries with represent-
atives stationed in Jerusalem. The United States
gladly and promptly made available military per-
sonnel and equipment in accordance with the estab-

lished understanding which this Government has
with the Secretary-General of the United Nations.

In 1949, under the leadership of Dr. Ralph J.
Bunche, the Governments of Egypt, Jordan,
Syria, and Lebanon concluded bilateral armistice
agreements with the new Government of Israel.
Each of these armistice agreements provided for
the continuation of the observer system through
bilateral mixed armistice commissions which were
charged with enforcing the armistice. These
mixed armistice commissions are still in existence
since border incidents and incursions are continu-
ing. The conflicts which arise between Israel on
the one hand and one of its Arab neighbors on the
other are handled by the mixed armistice com-
mission concerned. Each incident is investigated
by the United Nations observers and reported to
the mixed armistice commission which is empow-
ered to establish responsibility and to indicate
what remedial action should be taken.

This process, continuing year after year, is, as
you can well imagine, an exhausting and frus-
trating business for the United Nations observers
involved. It is, however, helping to maintain the
armistice while allowing time to work out a perma-
nent settlement of the serious and complicated
problems facing these newly created and newly
independent countries.

KASHMIR

You may be less familiar with the peace observa-
tion work in Kashmir since the situation there
attracts headlijies with far less frequency. Kash-
mir is located in the northernmost part of the
Indian subcontinent between India and Pakistan.
It is one of the many former princely states that
made up the British Dominion in India. Kash-
mir in area is about the size of your own State of
Minnesota but with variations in altitude from
the hot semitropic lowlands to the Karakoram
range of mountains, which average abaut 25,000
feet in height. Kashmir became the center of dis-
pute between India and Pakistan when these two
countries were created out of the old Indian
Dominion. Fighting broke out in the late fall of
1947, but a cease-fire was finally established in the
early days of 1949 through the United Nations.

Again United Nations observers were called
upon. Today, stretching across roughly the mid-
dle of the state of Kashmir is a cease-fire line, and
situated at strategic points along that line are
United Nations observer teams who have built up
an extraordinary record for maintaining the cease-
fire. There are today about 65 observers un-
der the able leadership of an Australian major
general.

KOREA

The type of observer group requested by Thai-
land last week had its origin in the experience of

June 28, 7954

979

the United Nations during the period immediately
preceding the Korean conflict. In 1949 the Gen-
eral Assembly, apprehensive of Communist in-
tentions in Korea, authorized its representatives
to "observe and report any developments wliich
might lead to or otherwise involve military con-
flict in Korea."

United Nations observers were there on the f ate-
ftd morning of June 25, 1950, when the North Ko-
rean Communists launched their aggression across
the 38th parallel. Within hours, the United Na-
tions observers reported to United Nations Head-
quarters in New York that an act of overt and
unprovoked Communist aggression had taken
place.^ They were able to supply tlie United Na-
tions immediately with accurate and unbiased in-
formation on who were the aggressors, despite
Communist attempts to put the blame on the Re-
public of Korea and the United States. This en-
abled an accurately informed Security Council
promptly to recommend support for the United
States appeal to the United Nations. Within 48
hours of the Communist invasion the first col-
lective military action against aggression in the
history of an international organization was under
way.

The members of the United Nations Commission
on Korea which flashed the warning to the United
Nations were India, Australia, China, El Sal-
vador, France, the Philippines, and Turkey.

The observation group in Korea, as in the case
of Greece, Palestine, and Kashmir, fulfilled an es-
sential function. This was why the General As-
sembly, by an overwhelming vote, decided in No-
vember 1950 to establish a permanent Peace
Observation Commission. Its task would be to
send observers upon request or with the consent of
states to areas where conditions were such that
peace might be endangered. It was to be the eyes
and eai-s of the United Nations.

Work of Specialized Agencies

So far I have been talking about what may be
called the political side of our participation in the
United Nations. There are other equally impor-
tant and constructive aspects of our participation
in the United Nations which deserve mention be-
fore I conclude. I refer in particular to the work
of the specialized agencies. The prestige and ac-
complislunents of these agencies, which our Gov-
ernment has so strongly backed from the begin-
ning, have increased. The contributions of other
governments to their support are being augmented.

We do not regard one nickel of our contribution
as charity or philanthropy. Our outlay is made
in the best interests of our own security and well-
being. Two-thirds of the people of the world

'For text of the report, see United States Policy in the
Korean Crisis (Department of State publication 3922),
p. 12.

have a standard of living below what you or I
would regard as a minimum. I think we should
ponder over this fact. The people of the under-
developed areas are beginning to realize that
things can be better for them, and they are de-
manding improvement. The agents of interna-
tional communism are of course taking advantage
of their discontent and are preaching the false
doctrine that communism is a shortcut to a better
way of life.

The United States cannot stand aside from this
social ferment and let despair and ignorance play
into the hands of the Communists. It is clearly
in our interests to work with the free nations in
giving leadership to the programs of the special-
ized agencies of the United Nations in their in-
creasingly successful battle against hunger,
illiteracy, and disease — the conditions under which
the Communist virus thrives. By so doing we are
helping to expose empty Communist claims in
contrast to the tangible accomplishments of these
international programs of technical assistance.

In this work the United Nations and the United
States are squarely on the same side. The
U.S.S.R., on the other hand, until recent months
has denounced the work of the United Nations
specialized agencies such as the Food and Agricul-
ture Organization, the International Labor Organ-
ization, the World Health Organization, the
United Nations Educational, Scientific and Cul-
tural Organization, etc., and has stood aloof from
membership. Now, however, the U.S.S.R. is mov-
ing to join some of these organizations. Tliis is a
kind of left-handed testimonial to the success of
the specialized agencies in helping others to help
themselves. If the U.S.S.R. demonstrates by its
actions that it will support the principles and ob-
jectives of these bodies, then their membership
will be welcome. If, however, their intentions are
to sabotage these principles and objectives, then I
can assure you that the free world will rally to de-
fend and safeguard these organizations.

That the free countries are alert to this danger
was amply demonstrated last week at the Ilo Con-
ference now in session at Geneva. The delegates
of the non-Communist nations voted by large ma-
jorities to exclude Soviet and satellite worker and
employer representatives from the governing body
of the Ilo on the grounds that in Communist
countries such representatives are simply spokes-
men for their governments, and not for manage-
ment and labor.

Of the various United Nations specialized agen-
cies I realize that you, as members of the medical
profession, have a particular interest in the World
Health Organization (Who). I am sure that
many of you here have taken some direct or in-
direct part in the Who — the training of foreign
students or doctors, technical advice, or foreign
assignments for the organization. The World
Health Organization has a record of tangible ac-

980

Department of Stafe Bulletin

complishment second to none in realizing the
United Nations determination to remove the basic
causes of international instability and tension.

As a matter of fact, there are literally millions
of people in faraway parts of the earth, who, when
queried on the United Nations and what it is, think
only of the Who, known in many parts of the
world as "Who." I am reminded of an episode in
Thailand. An Indian doctor working on malaria
control in a remote village in Northern Siam
asked the local head man a few questions : Had he
ever heard of Mr. Nehru? "No"; had he ever
heard of Mr. Eisenhower? "No"; had he ever
heard of the U.N.? "No"; had he ever heard of
Who ? "Oh, yes, Mr. Who is the man who took off
my clothes and sprayed my house and we have
had no more sick babies — very good man." By so
simple an experience as this the positive accom-
plishments of the United Nations are removing
the conditions and attitudes which foster the
spread of communism.

I have reviewed for you some of the accomplish-
ments and some of the problems of our participa-
tion in the United Nations. I have taken a fresh
look at the means offered by this organization to
keep the peace, to resist aggression, and to remove
the conditions which foster the growth of com-
munism. I would ask each of you to take a fresh
look at this organization from the point of view of
what it was intended to do, what its accomplish-
ments have been, and the kind of world in which
it has to operate. I am sure that when you do
take this fresh look, whether you have had too
high or too low an estimate of the United Nations,
you will agree with us that it is a necessary and
effective instrument for us and all free nations.
It deserves and needs your strong and well-in-
formed support.

Guatemalan Situation

NEWS CONFERENCE STATEMENT
BY SECRETARY DULLES

Press release 323 dated June 15

At his news conference on June 15^ Secretary
Dulles was ashed about reports that the United
States would at the June 16 meeting of the Organi-
zation of American States call for a meeting of
Foreign Ministers to discuss the Guatemalan sit-
uation. He toas also asked about reports that
Guatemalan President Arbens had been given an
ultimatum by Guatemalan Army officers to disso-
ciate himself from communism or resign. Mr.
Dulles made the following reply:

I am not able to confirm either report, which
does not mean that they may not be true. There
has been an exchange of views going on as between

the American States with respect to the possibility
of a meeting of the Organization of American
States some time in the near future. I have no
knowledge that it would be brought up at the
particular meeting that you refer to. So far, the
exchanges of views that have been taking place
have been through diplomatic channels.

As far as the situation in Guatemala is con-
cerned, we don't have any information which is
from a clearly dependable source. We have heard
the same reports as those you referred to. No
doubt there is going on somewhat of a reign of
terror in Guatemala. There is no doubt in my
opinion but what the great majority of the Guate-
malan people have both the desire and the capabil-
ity of cleaning their own house. But, of course,
those things are difficult to do in face of the Com-
munist type of terrorism which is manifesting
itself in Guatemala and which is perhaps most
dramatically expressed by the statement of one
Communist member of the Guatemalan Congress
that if there was a disturbance, that would mark
the beginning of a beheading of all anti-Commu-
nist elements in Guatemala.

I am confident that the great majority of the
Guatemalan people do not want that state of
affairs.

DEPARTMENT STATEMENT, JUNE 19

The Department has been in touch with Am-
bassador John E. Peurifoy at Guatemala City by
telephone and telegi-aph and the Ambassador
reports that all Americans there are well and safe.
Mr. Peurifoy is keeping in constant touch with
members of the United States community in
Guatemala and has made strong representations
to local authorities regarding their safety. The
Ambassador also reports that during the past 24
hours serious uprisings were reported at Quezal-
tenango, Zacapa, and Puerto Barrios. He reports
that there have been three overflights at Guate-
mala City. The first was at 4 p. m. local time,
Friday, another at 11 : 45 last night, and the last
at 11 o'clock this morning. The Ambassador con-
firmed that there had been no bombings or straf-
ings by planes in the Guatemala City area and
that, although the appearance of the planes had
caused alarm, there had been no disorders.

At the request of Foreign Minister Toriello,
Ambassador Peurifoy, together with the French
Minister and the British Charge, called at the
National Palace last night. The Foreign Minister
asked them to inform their Governments that
Guatemala City had been attacked by two air-
craft which had bombed a house near the center
of town and strafed the National Palace. He also
charged that troops had crossed the border and
captured El Florido, 15 kilometers inside the
Guatemalan border and that this constituted

June 28, 7954

981

aggression, and that he had asked the United
Nations Security Council to take up the case. The
Department has no evidence that indicates that
this is anything other than a revolt of Guate-
malans against the Government.

At noon yesterday correspondents Patrick
Catlin of the Baltimore Sim and Thomas Gerver
of the Boston Traveler were taking pictures ne^ar
the center of Guatemala City. They were arrested
on orders by the Communist labor leader, Victor
Manuel Gutierrez. They were released 25 minutes
later after their film was confiscated.

The latest outbursts of violence within Guate-
mala confirm the previously expressed views of
the United States concerning possible action by
the Organization of American States on the
problem of Communist intervention in Guatemala.
The Department has been exchanging views and
will continue to exchange views with other coun-
tries of this hemisphere, who are also gravely
concerned by the situation in Guatemala, regard-
ing action needed to protect the hemisphere from
further encroachment by international comnm-

nism.

Exhibition of Peaceful Uses
of Atomic Energy

Following is the text of a message from. Presi-
dent Eisenhower which was read by Clare Booth
Luce, Ambassador to Italy, on the occasion of the
inauguration at Rome on June 15 of the world-
wide ■program- by the United States Information
Agency to exhibit peaceful uses of atomic energy,
together tvith remarks made by Mrs. Luce on the
same occasion.

MESSAGE FROM PRESIDENT EISENHOWER

We have only recently passed the midpoint of
the 20th century. Yet I am convinced that histoi-y
will one day record as the most far-reaching physi-
cal accomplishment of all this century — or even
of 20 centuries — the discoveries which in recent
years unlocked, for the use of mankind, the bound-
less energy of the atom.

From among the numberless generations which
have peopled this ])lanet destiny has called upon
those now livino; to reach decisions on the use of
nuclear energy that will govern, in major measure,

the future of mankind. Never before has man's
wisdom and vision been so supremely tested.
Never again may man have so extraordinary an
opportunity for his own betterment or so awful a
responsibility for his own fate.

So great is this opportunity, so grave this re-
sponsibility, that all rational humans are moved
humbly to pray that this new knowledge may be
used in its fullness — for peace, for progress, for
freedom.

It is in this spirit that the Atom for Peace
Exhibit is being inaugurated in Rome by Am-
bassador Luce.

REMARKS BY AMBASSADOR LUCE

It is a pleasant honor to welcome you here to-
niglit for the inauguration of tliis exhibition of
peaceful uses of atomic energy. Tlie disi)lay you
will see is presented in the hope tliat it may con-
tribute to wider pulilie understanding of the po-
tentialities favorable to the welfare of mankind
that exist in this new field of science. I know you
will find it of interest and value. On behalf of my
Government, I should like to take this opportun-
ity to express our sincere ai)preciation for the very
kind assistance that has been provided by the
Governments of Italy, France, and the itnited
Kingdom in order that this exhibition could be
con.structed and shown to the public.

Let us hope that this example of cooperation
will be a propitious augurj- for the future develop-
ment of atomic ener":y throughout the world. For
there is surely no sunject of international concern
for which cooperation between nations is more
necessary, if mankind is to progi-ess in peace.

The American (iovernment and people deeply
desire to achieve closer collaboration in this field
with all other nations. We believe that only thus
can mankind enjoy the full benefits offered by this
great new source of energy.

We regard the peaceful applications of atomic
onergj- as a new sunrise on the world horizon.
AVe wish its rays might pierce through and dissi-
pate the cloud of danger created by the failure of
nations thus far to achieve international control
of nuclear power. We believe that our hopes and
feai"s are snared by people of good will in every
nation. On the foundation of these shared feel-
ings we trust that there can be built, with patience
and understanding, a strong system of interna-
tional cooperation.

In that hope, I welcome you to this exhibition.

982

Department of State Bulletin

Peace and Security in tlie H-Bomb Age

hy David W. Wainhouse

Deputy Assistant Secretary for United Natio ns Affairs ^

The Northwest Institute of International Eela-
tions has chosen for the title of the present meet-
ing "United States Foreign Policy in the H-bomb
Age." This is indeed a challenging subject. We
now are living in a period in which the develop-
ment of thermonuclear weapons holds a prime
place in newspaper headlines and in the minds of
people everywhere. This leads me to inquirs to
what extent has this development affected our
basic foreign policy objectives and the means for
achieving them.

Secretary Dulles lias summed up our objectives
clearly in one sentence: "The central goal of our
policy is peace with freedom and security."

In our efforts to find that often elusive objective
of peace with freedom and security, a wide variety
of means is employed. I would say that the United
States uses four general approaches. First, we
try to bring about the adjustment of international
differences through the processes of peaceful set-
tlement. Secondly, we attempt to strike at the
root causes of international unrest by supporting
international efforts to alleviate social and eco-
nomic ills and by our own progi'ams for improving
the world's living and health standards. Thirdly,
we are developing an effective system of collective
security against aggression, wherever it may oc-
cur. Fourthly, we are seeking agreement on a
general program for the regulation, limitation,
and balanced reduction of all armed forces and
all armaments, including nuclear weapons, which
would contain effective safeguards to ensure
compliance.

Peaceful Settlement of International Differences

Our basic obligation to promote peaceful settle-
ment of international disagreements rests in the
United Nations Charter. Tliis obligates all mem-
bers to settle their international disputes by peace-

' Made before the Northwest Institute of International
Relations at Reed College, Portland, Ureg., on June 13
(press release 314 dated June 10).

ful means in such a manner that international
peace, security, and justice are not endangered.
It is not a new obligation for the United States.
In fact its historical roots reach back to the early
days of the Kepublic. Nor is it the only interna-
tional treaty in which we have undertaken to
advance the processes of peaceful settlement.
Most of the treaties and declarations which form
part of the inter-American regional system con-
tain pacific settlement provisions. As a specific
illustration, the Pact of Bogota, which established
the Charter of the Organization of American
States, obligates the American States to submit
all international disputes that may arise between
them to the peaceful procedures set forth in that
charter before referring these disputes to the
Security Council of the United Nations.

Our desire to utilize means of peaceful settle-
ment is not limited to tlie inter- American system.
The North Atlantic Treaty of April 4, 1949, obli-
gates the parties to settle any international dis-
putes in which they may be involved in such a
manner that international peace and security,
and justice, are not endangered, and to refrain in
their international relations from the threat or
use of force in any manner inconsistent with the
purposes of the United Nations.

The United States has demonstrated its support
of this principle of peaceful settlement in one case
after anotlier which has arisen within tlie United
Nations framework. Our efforts contrilauted to
the peaceful settlement of such issues as the with-
drawal of British and French troops from Syria
and Lebanon and Soviet troops from Iran, follow-
ing Security Council consideration of these prob-
lems in 1946. We played a major role in helping
bring about peaceful settlement of the issues be-
tween the Dutcli and the Indonesians which led to
Indonesian independence. Our support of the
Balkan Commission's efforts in Greece certainly
contributed to the easing of a dangerous situation
between Greece and its neighbors. We have played
a principal role in the General Assembly's and
Security Council's efforts to bring to an end the

June 28, 1954

983

disputes between Israel and the Arab States in
Palestine. While there certainly is no final peace
agreed upon as yet in this area, the armistice is
still honored in large measure.

The Kashmir dispute between India and Paki-
stan also has not been finally settled. However,
Security Council efforts, in which the United
States has played a major role, have brought about
a cease-fire and agreement between the parties on
many elements of this dispute. I might also men-
tion the Berlin blockade, an extremely dangerous
situation involving the Great Powers and the pres-
tige of both the Soviet Union and the United
States, which was settled by peaceful negotiations
begun through United Nations channels after the
Western Powers had demonstrated their firm in-
tent to maintain their commitments to the free
people of Berlin.

Not least in the evidence of our devotion to the
concept of peaceful settlement is the long history
of the efforts to settle the Korean problem peace-
fully. We Americans are often accused of being
an impatient people. Yet, I believe that history
will record with favor our patient negotiation on
the Korean problem in the face of Communist
delay, vilification, and false accusation.

Striking at the Root Causes of War

The second major element in our foreign policy
has been to support action striking at the root
causes of world unrest. Through our own direct
aid and through our support of United Nations
efforts we are helping to save people, to save mate-
rial resources, to develop skills, to alleviate the so-
cial and economic ills which provide a fertile
breeding ground for world unrest and for com-
munism and other similar reactionary doctrines.
Between mid-1945 and December 31, 1953, for non-
military purposes the United States actually
granted approximately $26 billion and loaned
about $13 billion for foreign aid in many parts of
the world. This money was used to rebuild war
devastated areas, to restore and raise industrial
and agricultural levels, to arrest the spread of dis-
ease, to develop skills, to bring foreign leaders and
students to this country and send our own experts
abroad for mutual benefit. This expenditure does
not include our support of the financially inexpen-
sive but amazingly successful programs conducted
by the United Nations in the economic and social
field on a cooperative basis, through the United
Nations Technical Assistance programs and the
efforts of the specialized agencies, to which the
United States is the chief contributor.

These efforts are in our self-interest. They are
helping to create worldwide stability. Wide-
spread disease, serious economic ills, and major
social unrest in any part of the world inevitably
affect our own peace, security, and well-being. We
cannot be an oasis of prosperity in a world of mis-
ery. We must strive to remove conditions which

permit the Communists to exploit misery and
want. Our security involves not only military
power but also the good will and respect, the con-
fidence, and the moral support of decent people
anywhere in the world. As we help to improve the
general welfare of people, we are giving them
something to fight with and fight for.

Collective Security

"\\Tien most people talk about collective security
they think in terms of military pacts. While I
have indicated earlier that in fact security is com-
pounded of many elements, the military element
is a fundamental in maintaining our freedom.
Let me remind you of how Secretary Dulles re-
cently stated the importance of collective security
to the United States :

The cornerstone of security for the free nations must be
a collective system of defense. They clearly cannot achieve
security separately. No single nation can develop for it-
self defensive power of adequate scope and flexibility. In
seeking to do so, each would become a garrison state and
none would achieve security.'

The United States participates in two types of
collective security arrangements. The first type
is the United Nations system. The United Na-
tions Charter contemplated that the Security
Council would have primary responsibility for the
maintenance of international peace and security.
The attitude of the Soviet Union soon demon-
strated that the collective security function could
not be based on continuing cooperation by the
Five Great Powers. Soviet intransigence on the
problem of making forces available to the U.N.
in accordance with article 43 of the charter and
the specter of Soviet use of its veto power to pre-
vent any effective collective security action brought
about the "Uniting for Peace" resolution of No-
vember 3, 1950. This resolution provides that
the General Assembly can meet in emergency ses-
sion within 24 hours if the Security Council, be-
cause of lack of unanimity of the five permanent
members, fails to act when the peace is threatened
or broken. The General Assembly can then make
recommendations to members of the United Na-
tions to take necessary action, including the use
of armed force.

The Uniting for Peace resolution also estab-
lished a Peace Observation Commission to observe
and report on the situation in any area in which
international conflict threatens, upon the invita-
tion or with the consent of the state in whose terri-
tory the Commission would go. The Thai Gov-
ernment on June 3 requested just such a Peace
Observation group for its area.

Article 51 of the charter recognizes the right of
individual or collective self-defense to meet armed
attack. It requires only that the measures taken
in the exercise of this right of self-defense be im-

' Bulletin of Mar. 29, 1954, p. 460.

984

Department of State Bulletin

mediately reported to the Security Council.
Through various pacts, which are in accord with
the charter, we are involved in mutual-defense
arrangements with 38 other countries.

The Eio Treaty of 1947, better known as the
Inter- American Treaty of Reciprocal Assistance,
is an arrangement which set a postwar example
in establishing the principle that the defense of
the American Hemisphere must be a collective re-
sponsibility and, consequently, that an armed at-
tack on one state would be considered an attack
against all. This treaty includes the 21 Ameri-
can Republics and, together with the Pact of Bo-
gota of 1948, constitutes the basis for the collective
defense of the American Hemisphere.

The North Atlantic Treaty came into force in
1949 and now contains 14 members, including the
United States. Its basic principle is that an
armed attack against one or more of its members
in Europe or North America is considered an at-
tack against all, to be resisted collectively. As
you know, the members of Nato have made great
strides in organizing joint forces and facilities as
part of an integrated collective security system, in
which each member contributed according to its
means and capabilities.

In the Pacific, the United States has developed
a series of security treaties, approved by the
Senate on March 20, 1952, between the United
States and Japan, the United States and the
Philippines, and the United States, New Zealand,
and Australia. These pacts recognize that an
armed attack in the Pacific area on any of the
signatories would be dangerous to the peace and
security of the others and obligates all to meet
common dangers in accordance with their consti-
tutional processes. In addition to these pacts,
the United States has entered into a security
treaty with Japan under which we maintain armed
forces in and about Japan to deter armed attack,
while Japan is increasingly to assume responsi-
bility for its own defense. A similar securitv pact
has also been signed between Korea and the I'inited
States, providing for mutual defense against
armed attack.

The meaning of United States participation in
collective security arrangements can be summed
up quite briefly. Our concept is that military
establishments should be created on a community
basis, where armed forces will not be used at the
discretion of a single state or a single person, but
only under circumstances which unite several
states against aggression. This collective security
approach is not, by its very nature, susceptible to
being used for aggressive purposes. It rests upon
the necessity for the free nations to pool their re-
sources for the most effective defense.

Efforts Toward Disarmament

Patient and persistent effort toward general
disarmament constitutes the fourth of the general

June 28, 1954

303889—54 3

approaches employed by the United States in its
attempts to attain this goal of peace with free-
dom and security. As a practical matter, the
United States efforts to attain collective security
and to achieve disarmament are opposite faces of
the same coin. Their purpose is to achieve a
reliable common protection against attack in oi'der
to relieve nations from the fear of aggression.
One element of this purpose is collective security,
and the other element is ''disarmament." By dis-
armament we mean the regulation and balanced
reduction of all armed forces and all nonatomic
armaments, the prohibition of nuclear weapons
as tlie result of effective international controls,
and the provision of adequate safeguards to make
sure that all nations comply with such a program.

In contrast to our far-ranging and serious
efforts, the Soviet Union has concentrated on a few
ideas, simple to the eye and ear, designed largely
for propaganda purposes — but which would also
have worked to the advantage of the U.S.S.R.
and the peril of the free world. The Soviets
proposed a variety of devices which would have
obligated the free world not to manufacture or
use atomic weapons, without being sure the
U.S.S.R. would do likewise because there would
be no means of piercing the Iron Curtain.

In 1945, the United States had a monopoly of
atomic weapons. Nevertheless, we tried to find
ways to eliminate the threat of atomic warfare
under adequate safeguards to protect all states.
It was on the initiative of the United States that
agreement was reached in Moscow in December
1945 with the United Kingdom and the Soviet
Union on a proposal for establishing a U.N.
Atomic Energy Commission. In this Commis-
sion, from its establishment on January 24, 1946,
through 1948, the United States tried to reach
agreements with the Soviet Union which would
eliminate nuclear weapons as a result of effective
international control to insure atomic energy was
used for peaceful purposes only.

The discussions of the U.N. Atomic Energy
Commission culminated in the approval of the
U.N. plan for the international control of atomic
energy, by the overwhelming majority of the Gen-
eral Assembly in 1948. This plan was largely
based on the United States proposal (often called
the Baruch plan) as modified in the IJ.N. Atomic
Energy Commission. It would provide for the
elimination and prohibition, through effective in-
ternational control procedures, of all the various
types of weapons based on the release of atomic
energy. Failure to put this plan into effect was
due to the Soviet Union's adamant refusal either
to accept the plan or to propose any reasonable al-
ternative. The Soviet proposals, as practically
all members of the U.N. recognize, present the il-
lusion and not the reality of security. They
would have permitted some kind of periodic in-
spection and would liave allowed special inspection
only under circumstances in which the suspected

985

violators would have been able to control the in-
spection ; they would not have assured against the
hazards of violations or evasions.

Throughout 1949 and 1950, in the meetings of
the six permanent members of the U.N. Atomic
Energy Commission, we sought unsuccessfully to
overcome Soviet intransigence in this field. Si-
multaneously with these efforts in the atomic field,
we have been trying to ascertain whether there
would be some means of reaching agreement with
the Soviet Union on reduction of armed forces and
the so-called "conventional weapons." In 1947
the Commission for Conventional Armaments was
established by the U.N. with the same membership
as the Security Council. In that Commission the
United States introduced the plan of work which
was adopted by the Commission in 1947. In 1948
the United States, France, and the United King-
dom played major roles in developing an impor-
tant statement of the principles relating to the reg-
ulation and reduction of conventional armaments
and armed forces. In 1949, the Commission,
largely on United States initiative, developed pro-
posals for a census and verification of armaments
and armed forces, which the Soviet Union
promptly vetoed in the Security Council. In 1950,
although the Soviet representative withdrew from
participation in the activities of the Conventional
Ariuaments Commission, the United States dem-
onstrated its interest in making progress by outlin-
ing general views on various safeguards in the
disarmament field.

At that particular point, the efforts of the two
United Nations commissions were stymied by So-
viet refusal to discuss the issues and even to attend
the meetings. Following the United States ini-
tiative, the General Assembly established the Com-
mittee of Twelve in 1951, in order to see whether
progress could be made by combining the functions
of the United Nations Atomic Energy Commis-
sion and the Conventional Armaments Commis-
sion in a new and unified body. All members of
this Committee, except the U.S.S.R., agreed that
this course should be followed. The U.S.S.R. po-
sition was all the more difficult to understand be-
cause it had in past years favored such a unified
approach to the disarmament problem.

On January 11, 1952, the present United Nations
Disarmament Commission was created by the
General Assembly on the basis of proposals made
by the United States, joined by the United King-
dom and France, which outlined the objectives and
the terms of reference of the Commission. The
Commission tried hard throughout 1952 to find
ways of carrying out the tasks set for it by the
General Assembly. These efforts again failed be-
cause of Soviet intransigence. In these meetings,
the United States independently, or joined by the
United Kingdom and France, in effect presented
the broad outline of its views on a comprehensive
disarmament progi'am which would include all

armed forces and all armaments, both atomic and
nonatomic.

We presented "Essential Principles for a Dis-
armament Program," to provide objectives which
might guide the Disarmament Commission in its
work. We introduced proposals on a system of
progressive and continuing disclosure and verifi-
cation of all armed forces and armaments, which
included atomic information from the outset.
Joined by the United Kingdom and France, we
suggested fixing ceilings on the armed forces of
the Five Great Powers and all other states with
substantial military power which would have
meant great reductions in these armed forces.
The three Western Powers set forth their views
on how to prevent undue concentration of per-
mitted armed forces in the various military serv-
ices, and how to limit conventional armaments.
Finally, the United States explained how it be-
lieved bacteriological weapons should be elimi-
nated from national armaments as part of a com-
prehensive disarmament system.

You may recall that the Soviet Union preferred
to raise false charges that the United States had
used bacteriological weapons in North Korea and
China rather than discuss how these weapons
might be eliminated in a general disarmament
program. This Soviet concentration on propa-
ganda, which was a lie in its inception and in
every other detail, was characteristic of the Soviet
approach to the problems discussed in the Dis-
armament Commission in 1952.

Despite this record of frustration, the U.S. con-
tinued in every practicable way to demonstrate
this Government's abiding desire for disarma-
ment. In 1953, this desire was demonstrated
most concretely by four efforts. First, on April
16, 1953, President Eisenhower suggested that a
disarmament agi'eement could properly include
limitation, either by absolute numbers or by an
agreed ratio, on the military and security forces
of all nations; an agreed limit on that part of
total production of certain strategic materials
devoted to military purposes; international con-
trol of atomic energy to insure the prohibition of
atomic weapons ; limitation or prohibition of other
categories of weapons of great destructiveness;
and enforcement of this program under adequate
safeguards, including a practical inspection sys-
tem under the United Nations. The President
declared his readiness to ask the people of the U.S.
to join with all nations in devoting a substantial
percentage of the savings achieved by disarma-
ment for a fund for world aid and reconstruction.
He called upon the Soviet Union to demonstrate
concretely its concern for peace by deeds instead
of by words.

Second, Secretary of State Dulles in his open-
ing address to the United Nations General As-
sembly on September 17, 1953, emphasized the
U.S. desire for progress in relaxing international
tensions and this Government's willingness to try

986

Department of State Bulletin

to solve the complex problems in the disarmament
field now in anticipation of the time when agree-
ments in the political area would enable an agreed
disarmament program actually to be put into ef-
fect. Mr. Dulles said that the U.S. was not in-
flexible in its views except in insisting that any
jjroposals must meet the one fundamental test of
safeguards to insure the compliance of all nations
and to give adequate warning of possible evasions
or violations.

Third, President Eisenhower made his pro-
posals of December 8, 1953 at the United Nations
General Assembly. You will recall he suggested
that there should be joint contributions of uranium
and fissionable materials to an International
Atomic Energy Agency, established under the
aegis of the U.N. The most important responsi-
bility of this Agency would be to devise methods
to allocate this material to serve the peaceful pur-
suits of mankind. The President made clear that
this proposal was not intended to solve all the com-
plex problems in the disarmament field. Instead
he hoped it would initiate a new approach to these
many difficult problems. As you know, private
discussions with the Soviet Union on this matter
have been conducted over the past months. On
May 31 the President disclosed these bilateral
conversations had not been productive of the re-
sults we seek. He added that the U.S. intends
to exchange views and consult with the other free
nations principally involved, in the belief that our
purposes and hopes would survive even the most
frustrating series of talks.

The fourth major example of U.S. desire to
achieve safeguarded disarmament was our cospon-
sorship of the General Assembly resolution of No-
vember 28, 1953. This resolution provided that
the Disarmament Commission should consider
establishing a subcommittee of representatives of
the "powers principally involved" to seek in pri-
vate an acceptable solution to the disarmament
problem. Under this resolution a subcommittee
of the Disarmament Commission has been set up
consisting of the U.S.S.E., the U.K., Canada,
France, and the U.S. This subcommittee of five
has been meeting in closed sessions in London
since May 13.

Soviet Propositions

To this initiative of the U.S. over the years,
how has the Soviet Union reacted? There liave
been variations in the details but none in the sub-
stance of the Eussian responses. First, the
U.S.S.K. has tried to get the U.N. to declare
atomic, hydrogen, and other weapons of mass
destruction to be "unconditionally prohibited" by
force of the declaration alone, without adequate
safeguards to insure that the prohibition would
in fact be observed. Secondly, the U.S.S.R. has
asked the U.N. to recommend to tlie five permanent
members of the Security Council that they reduce

their armed forces by one-third within a year.
From what levels and to what levels this one-third
reduction would apply has not been explained, nor
how it would be accomplished. This would main-
tain or even increase the preponderance of power
in this field on the part of the Soviet world. And,
thirdly, the Soviet Union has tried to secure U.N.
recommendations to eliminate military, air, and
naval bases in the territories of other states, with
particular reference to Nato, on the alleged
ground that these bases increase the threat of a
new world war but actually because they
strengthen the defensive capabilities of the free
world.

The United Nations has rejected all of the Soviet
propositions over these years, recognizing them
for what they are. There is no reason to expect a
different fate for the present Soviet variation on
its old theme. In the past, they stressed banning
nuclear weapons merely by declaration. Now
they propose — again by declaration — banning the
use only of these weapons. This is sometimes re-
ferred to as a new approach by the Soviet Union.
In fact, it is really a repetition of efforts made in
the General Assembly by the U.S.S.R. in the fall
of 1950 and rejected by a substantial majority of
the U.N. The United Nations rejected it then as
the U.S. opposes it now. Our reasons are sound.

The United States believes that the disarma-
ment system for which we are working should pro-
vide for prohibition not only of the use but also of
the production of atomic and hydrogen weapons.
But we believe this can only come about as the
result of effective safeguards which will insure
that such agreements will be observed. Mere dec-
larations not to use these weapons, which lack any
adequate safeguards against violations or evasions,
do not lessen the danger of war nor its destruc-
tiveness. The Soviet proposal would permit stocks
of weapons to be accumulated, while merely pro-
posing a declaration against their use which would
provide at best the illusion and not the reality of
security.

The United States adheres to the views rec-
ognized as fundamental by the United Nations,
which state that the whole disarmament program,
including the elimination and prohibition of
atomic weapons and major weapons adaptable to
mass destruction, should be carried out under ef-
fective international controls and in such a way
that no state would have cause to feel that its
security was in danger. The Soviet proposal for a
ban on the use of atomic and hydrogen weapons is
an effort to single out particular weapons and then
not to do anything more than create a paper
promise not to use these weapons. This approach
attempts to ignore the defeat suffered by the
U.S.S.R. when it last made such a proposal, when
the members of the U.N. pointed out clearly that
it is aggression which is the gi-avest of all crimes
against peace and security, rather than the use of
any particular weapons. For its part, the United

June 28, 1954

987

States Government has said before and will repeat
again that it will not use any kind of a weapon
except to repel aggression ; that the United States
will not threaten to employ these weapons or use
them in any other manner inconsistent with our
obligations under the U.N. Charter. These are
pledges far greater than those which the U.S.S.R.
seeks to obtain from us for both propaganda and
strategic purposes.

I have emphasized particularly in my statenient
two of what I conceive to be the four principal
approaches used by the U.S. in trying to obtain
this objective of peace with freedom and security.
They are all part of the whole, and the use of the
processes of peaceful settlement and the attempts
to alleviate international social and economic ills
are also of great importance.

I would like to close with one reference which
would indicate to you why I have placed such em-
phasis upon collective security and disarmament.
Dr. Lloyd V. Berkner, a distinguished physicist,
recently wrote : "I have heard it said that the only
hope of avoiding destruction to our civilized
values now lies in negotiation. This is probably
true. But negotiation can be effective only when
we negotiate from strength." One of the major
objectives of tliis Government is to negotiate from
strength. It is for this among other reasons that
we pursue the four courses of action which I have
described. We have sometimes been accused of
seeking strength rather than negotiation. In fact,
the United States is seeking both strength — our
own and that of the free nations — and negotiation.
This dual effort has received the firm support of
most members of the United Nations. I believe
our record will demonstrate clearly that we have
sought to negotiate settlements of the major in-
ternational issues, and I am sure that my recital
of the initiative taken by the United States in the
disarmament field is good testimony to the
patience and persistence of these efforts. We shall
continue these efforts. I only hope that some day
we may be successful.

Building Strengtii in Today's
World Power Situation

by Deputy Under Secretary Murphy '

Perhaps today more than ever in American his-
tory the impact of our foreign relations is felt
more directly by those like yourselves whose good
fortune it is to be gi-aduated from American uni-
versities. But of course you know that the power
of a great nation is inextricably bound up with its

^ Address made at the commencement exercises at Ford-
ham University, New York, N. T., on June 9 (press release
311).

988

responsibilities. The world into which this grad-
uating class enters is profoundly different from
that which received your elders and preceding
generations of Americans. Just as the power
situation of our country has undergone change, so
the world of today is different in the tempo of
events, in the development of scientific techniques,
in its social characteristics and its conflicting
ideologies. In the healthy environment of Ford-
ham you are blessed by acceptance of a code of j
morality which has become alien to large masses "
of the world population for whom the state and
not the individual is of capital importance.

I suppose a pessimist would bemoan the fortune
which has been our lot in emerging from the ti-
tanic battles of World War II, victorious over the
totalitarian ideologies of nazism and fascism,
only to collide headlong, after barely a month of
respite, with the worldwide crusade of yet an-
other pagan philosophy, Soviet communism. But
it really is a challenge out of which will come a
better understanding of human values and a firm
belief in our i-eligioiis principles. Communism
long since rejected that code of morals which you
have learned to revere here at Fordham and else-
where. At times, in dealing with tlie exponents
of the other system, it has seemed to some of us
that we are at a disadvantage. For them the
conception of political action in good faith, of
trutli, of confidence, and of trust are the out-
moded concepts of a despised bourgeoisie. But
I believe that the disadvantage is more apparent
than real, and now the problem is more clearly
understood by an ever growing number in the free
world. At least the day has passed when we heard
so often that the trouble was that the Soviets did
not understand us well enough and that we had to
make substantial concessions at every turn to per-
suade them of our good faith. It seems hard to
believe today that such a theory was widespread
on the part of many Americans 10 years ago. In-
credible as it now seems, those were the days
when it was considered a diplomatic victory to
induce a Soviet representative merely to attend an
international meeting. But that is the way it was.
Of course, as our Secretary of State recently
said, if one does not believe in a spiritual order, if
one does not accept the fact of moral law and
wliat the Virginia Bill of Rights referred to as
"the duty which we owe to our Creator," then it is
indeed difficult to combat the thesis that men
should be the servants of the state. And that one
state should be the master over all other states.
As Secretary Dulles has wisely said, if it be ac-
cepted as a premise that man is merely matter,
then it is easy to conclude, as the Communists do,
that the greatest harmony and greatest productiv-
ity come from organizing a society of conformity,
where diversity is treated as grit in the gears of
a delicate machine. If all people act only as di-
rected and think only as directed and believe only
as directed, then, it is argued, there will be none

Department of Slate Bulletin

of the collisions, the disturbances, which produce
social unrest and wars. Then, it is said, there will
be peace and maximum productivity, because we
shall have applied to man the same principles of
conduct which, we find, increase peace and pro-
ductivity in the case of domesticated animals.

Under our system political liberty and national
sovereignty are orderly and acceptable only if we
exercise self-restraints and self-control in accord-
ance with the dictates of moral law; it is indis-
pensable to a free society that there be acceptance
of the supremacy of moral law, or free society
becomes a society of intolerable license. Basically
the present conflict between freedom and despot-
ism is a conflict between a spiritual and material
view of the universe and of the nature of man.

It is not and cannot be satisfactory to the Soviet
Communists that freedom is suppressed only with-
in what is now the area dominated by them — this
for the reason that freedom anywhere is a constant
danger to them because freedom is inherently a
contagious and dynamic moral force.

Thus it happens in our negotiations with the
Communists, whether it be in relation to Germany,
Austria, atomic energy, or Korea or Indochina,
there is always a consistent pattern. They cannot
relax their grip on what they have. They in-
variably insist upon a formula which will not
only assure the perpetuation of their despotism
but they seek bj' ruthless methods to gain control
of other and more distant areas which still enjoy
freedom.

That is the grim element, in what would other-
wise be a favorable, even happy, international pic-
ture, and it overshadows the future destiny of to-
day's graduating class and the classes of all our
American universities. Arising out of these cir-
cumstances and to protect the young people in
the development of their careers and the enjoy-
ment of a way of life which we cherish, your
government is engaged in the elaboration of a
system of collective security.

Naturally the most important objective of your
government is to keep the peace and the cardinal
principle it has adopted for this purpose is the
principle of collective security. We learned this
lesson from the bitter experiences of two world
wars. We have tried and it continues to be a tenet
of Amei-ican policy to apply this principle on a
universal basis in the United Nations.

Unfortunately for the world, Soviet imperial-
ism, operating under various slogans and promot-
ing the cause of international communism, became
the chief disturber of the peace throughout a whole
series of expansionist projects. By devious ways
and the ample use of the veto its repi-esentatives
have tried to obstruct the normal operation of the
United Nations peace machinery which under the
charter is comparatively simple and clear. A
number of nations including our own refused to
be frustrated by Soviet obstructionist tactics and
it fortunately became apparent that the peace-

making function of the United Nations is so im-
portant that it offers a reasonable latitude and a
variety of action all within the purview of the
Charter.

Thus it is well to remember that the Uniting for
Peace Resolution empowered the vetoless General
Assembly to initiate collective action against ag-
gression. Article 52 of the charter authorizes and
encourages regional security arrangements for
keeping the peace. And, of course, the historic
Vandenberg Eesolution adopted by our Congress
authorized American association with regional
and other collective security arrangements.

So it is clear that the guideline for United States
security action contemphites that such action have
the moral sanction of the United Nations in ac-
cordance with its established procedures. In such
instances it is also clear that our national action
must be a part of collective action, either under
the charter as in the case of Korea, or under
regional arrangements for self-defense as author-
ized by the charter and of course including the
threatened victim nation itself. In the words of
our President, each area must be defended pri-
marily by the people of that region ; no nation can
be saved which does not wish to be saved.

Thus our present policy represents an evolution
of the security goals we set for ourselves during
the course of American postwar planning. It has
been adapted to cope with Communist obstruction
but it still stresses security as the primary require-
ment for world progress.

Closely associated in our minds with security
is the promotion of world prosperity through co-
operation. Again the Iron Curtain has denied us
this on a worldwide basis but the free world offers
us a vast area in which we can act. And j'our
Government is acting with vigor in the fields of
economic cooperation and technical assistance as
well as in the broader areas of cultural exchanges
and intellectual cooperation. It is in these areas
that solid barriers can be erected against Com-
munist subversion which breeds on and inspires
social distress, and so strength can be stored
against eventual Communist aggression.

British Leaders' Visit to
United States

WHITE HOUSE STATEMENT

White House press release dated June 15

Some weeks ago the President of the United
States of America invited the FVime Minister and
the Foreign Secretary of the United Kingdom to
spend a weekend as his guests in Washington.

June 28, 1954

989

The invitation was cordially accepted, and it has
been arranged for the visit to take place during
the weekend beginning June 25.

STATEMENTS BY SECRETARY DULLES

Press release 321 dated June 15

At his neios conference on June 15, Secretary
Dulles ^oas asked the purpose of the impending
visit to the United States of Sir Winston Churchill
and Anthony Eden. Mr. Dulles replied:

The purpose is no more than the general desire
which Sir Winston Churchill has constantly had
to keep in close touch with his American friends.
It has been his practice, I think, over a period of
years, to come almost annually to this country.
In the process of coming here, he keeps in contact
with American public opinion and with the
thinking of the President and the Secretary of
State in relation to matters which are of common
concern. This is what you might call a normal
visit in this respect. It does not grow out of any
emergency. It has no agenda. It is merely an
informal talk together of the kind which Sir
Winston has sought over a good many years.

Asked irhether the timing of the imitation and
its acceptance implied that there had been some
change in the British position ^''diie to the failure''''
of the Geneva Conference, Mr. Dulles replied:

Well, there has been actually a sort of standing
invitation from the President to Sir Winston and
Mr. Eden to come over here whenever it was con-
venient. They are old friends of his, and ho enjoys
the prospect of getting together and having in-
formal talks. This, as I say, has been a sort of
standing invitation. Actually, it couhl be said
that it has been outstanding for much more than
some weeks. The fact that it is actually accepted
now for the weekend of June 25 is partly due to
the fact that it was not convenient for Mr. Eden
to come over here with Sir Winston while the
Geneva Conference was going on. It looks now
as though the Geneva Conference either will be
terminated or recessed or perhaps reduced to a
lower level of negotiation, so that it now seems
a convenient time to have the sort of informal
get-together which has been in our minds for
some time.

Ashed whether it loould be fair to assurne that
the conversations inill have some hearing on united
action, Mr. Dulles replied:

I would think that it would be fair to assume
that we would talk about whatever are the live
topics of the moment and that might be one of
them.

Ashed whether another topic would he possible
alternatives to Edc, the Secretary said:

I think my answer to the prior question covers
that one also. As I say, there is no agenda, and the
meeting and talks will be extremely informal, and
there will not be, as I understand it, any attempt
to arrive at any formal decisions, but probably the
kind of talk which would be expected of men of
affairs if they gathered together in the smoking
room after dinner and talked about the mattei's
that are currently in the news.

Ashed whether the French would he brought
into the talhs, Mr. Dulles replied:

I do not think that there will be any French
pai'ticipation in these particular talks. As I say,
this has been a sort of personal invitation of the
President's to personal friends of his. It is not
intended to arrive at any formal decisions which
would involve mattei"s of legitimate concern to
France, and it is not anticipated that the French
will be invited. This is not going to be like the
three-power talks that took place at Bermuda.
There have been occasions, as you know, when the
French President of the Council and the French
Foreign Secretary have been over here alone with-
out the presence of the British, and this will be an
occasion when the British will be here without
the presence of the Fi-ench. There are no impli-
cations to be drawn from that.

Ashed, whether he expected the visit of Mr.
Churchill and Mr. Eden to advance his efforts and
his interests in the formation of a, collective de-
fense system for Southeast Asia, Mr. Dulles
nrswered:

The United States has not given up its view
that the situation in that area would be improved
by (he creation of a collective defense system. I
would hope that the talks here would at least
further progress along that line. There seems to
be some indication that the British feel that the
possibilities of Geneva have been exhausted and
that the result is sufficiently barren so that alter-
natives should now be considered. If that is the
way tliey feel when they come over here, I hope
that that can lead to a closer meeting of the minds
which may permit, in consultation with the other
states which are legitimately involved, the taking
of some decisions.

U.S. Assurances to France

White House press release dated June 18

Follounng is the text of a letter of June 18 from
President Eisenhower to President Rene Coty of
France :

My dear Presitext Coty : I write to assure you
that in these troubled days my country rernains
warm in its sympathy and staunch in its friend-
ship for your country.

990

liepat\men\ of Sfafe Bullelin

It is of the utmost concern to my country, and
indeed to peoples everywhere, that France should
continue to play her historic role as the champion
of liberty, equality, and fraternity, and as a master
craftsman of new and better human relationships.

The United States hopes to see realized, while
the opportunity still exists, the imaginative and
epochal French concept for blending national
military forces on the continent of Europe so that
they will perform a single service of peace and
security. I want to assure you that the pledge of
support embodied in my message of April 16 ^ to
Monsieur Laniel still stands, and will continue
available to his successor.

In Indochina our nation has long shown its deep
concern by heavy financial and material aid which
continues. The proposals for a united defense
which we submitted to Monsieur Laniel repre-
sented on our part a momentous and grave deci-
sion. Nothing has happened here to change the
attitude thus expressed, even though the lapse of
time and the events which have come to pass have,
of course, created a new situation. But I assure
you that we shall be ready in the same sjnrit to
open new discussions as the forthcoming French
Government may deem it opportune.

I have mentioned two aspects of our relations
which imperatively demand high governmental
attention. You can be sure that they will be dealt
with upon the foundation of the respect and af-
fection for France which is felt by many millions
of individual American citizens. Our past asso-
ciations have brought sorrows and joys which
have indelibly pressed their image upon the very
heart of our nations and this is, on our side, a
guarantee of our future attitude.

I shall be talking informally with Sir Winston
Churchill and Mr. Eden next week and I look for-
ward to resuming with the Government of France
such intimate conversations as I have had in the
past both as President and previously when I
served in Europe in our common cause first of
liberation from one tyranny and then of defense
against another tyramiy.

I extend to you, my dear Mr. President, my re-
spectful greetings.

DwiGHT D. Eisenhower

Proposed Changes in Organization
of Export- Import Banl<

White House press release dated June 10

I'resident Eisenhower met at noon on June 10
with Senators Homer E. Capehart and Burnet K.
Maybank, of the Senate Committee on Banking
and Currency; Representatives Jesse P. Wolcott
and Brent Spence, of the House Committee on
Banking and Currency ; Secretary of the Treasury

' Bulletin of Apr. 2G, 1U54, p. 019.

George M. Humphrey ; Deputy to the Secretary of
Treasury W. Randolph Burgess; Assistant Secre-
tary of State Thruston Morton ; General Glen E.
Edgerton, Managing Director of the Export-
Import Bank.

At the meeting, agreement was reached on sev-
eral changes in the organization of the Export-
Import Bank which will be embodied in bills to
be introduced by Senators Capehart and Maybaiik
in the Senate and by Representatives Wolcott and
Spence in the House.

The changes are the result of a year's experience
and study, including visits to Latin American
countries by members of the Senate Banking and
Currency Committee and a mission headed by Dr.
Milton Eisenhower.

The Banking and Currency Committee of the
Senate has also had the benefit of consideration
of tliese problems by an advisory committee of
businessmen and financial representatives.

The proposed legislation would increase the
lending authority of the Bank by $500 million and
strengthen the organization of the institution by
creating a bipartisan board of directors of five
members to be appointed by the President subject
to Senate confirmation. The Chairman of the
Board would be the President of the Bank, who
would serve as the chief executive officer.

These proposed changes are designed to further
the basic objectives of the Bank, which are to aid
in financing and to facilitate the export and im-
port trade of the United States. Such assistance
is particularly important to American exporters
under current conditions in world markets.

The National Advisory Council on International
Monetary and Financial Problems will continue
to coordinate the foreign financial operations of
the Export-Import Bank with those of other agen-
cies of the Government. The President of the
Bank will become a member of the Nac.

International Bank Announcements

Loan for Pakistan Gas Project

The International Bank for Reconstruction and
Development, with six private British banks par-
ticipating, on June 2 made a loan of £5 million
(equivalent to $14 million) for the construction of
a natural gas transmission line in West Pakistan.
The project, based on the recent discovery of natu-
ral gas about 350 miles north of Karachi, will for
the first time make this fuel available to industry
and is of great potential importance in Pakistan's
economic development.

The loan was made to the Sui Gas Transmission
Company Limited. This is a newly formed com-
pany in which three-quarters of the shares will be
held by private investors in Pakistan and in the
United Kingdom, and one-quarter will be held

June 28, 1954

991

by the Pakistan Industrial Development Corpo-
ration. Slightly more than one-half of the shares
will be in Pakistani ownership; the Burmah Oil
Company Ltd. and the Commonwealth Develop-
ment Finance Company Ltd. of the United King-
dom will hold the remainder.

The Eastern Exchange Banks, a group of six
banks doing business in Asia, have agreed to par-
ticipate in today's loan, without the International
Bank's guarantee, to the extent of £645,000 ($1,-
806,000) . This represents the first seven maturities
of the loan, falling due semiannually from August
1, 1956, through August 1, 1959. The participat-
ing banks are The Chartered Bank of India, Aus-
tralia & China ; Eastern Bank, Limited ; Grind-
lays Bank Limited; Lloyds Bank Limited;
Mercantile Bank of India, Limited; and the Na-
tional Bank of India, Limited.

The development of natural gas will provide
Pakistan with an important domestic source of
fuel. Pakistan has relatively meager supplies of
coal and oil. Of its annual coal requirements of
about 1.2 million tons, 600,000 tons are now im-
ported; and fuel oil imports average more than
500,000 tons a year. By providing relatively cheap
and abundant supplies of the new fuel, the Sui gas
project will in time save large amounts of foreign
exchange. In the first year of oi:)erations gas from
the project will be equivalent in fuel value to
some 500,000 tons of coal, and, as plant capacity is
reached, it will be triple this amomit.

Assistance to Railways
In French West Africa

The International Bank on June 10 made a loan
of $7.5 million to assist a program being carried
out to modernize the railwaj-s of French West
Africa. J. P. Morgan & Co., Incorporated, has
agreed to participate in the loan, without the In-
ternational Bank's guarantee, to the extent of
$609,000 covering the first two maturities of the
loan falling due on December 1, 1956, and June 1,
1957.

Efficient rail transport is essential to the trade
and future development of French West Africa.
Distances are great: the country is about three-
fifths the size of the United States and eight times
that of France. About three-quarters of the pop-
ulation of 18 million live more than 200 miles from
the Atlantic coast. Without the railways the inte-
rior would be largely cut off from world commerce ;
traffic on the major rivers is hampered by sand-
bars, rapids, and wide seasonal variations in the
water level, while long motor roads have proved
costly to build and maintain. At present about
four-fifths of the freight carried by the railways
moves in overseas trade. Exports consist chiefly of
cocoa, cotTee, peanuts, bananas, palm oil, and other
tropical products.

The railways consist of four separate meter-gage
lines. They total 3,750 kilometers (2,250 miles) in

length and run inland towards the Niger Eiver
from the widely separated ports of Dakar, Con-
akry, Abidjan, and Porto Novo.

During the Second World War the railways suf-
fered seriously from lack of replacement parts and
could not be adequately maintained. In 19i7,
therefore, the French authorities began a long-
range program to modernize equipment and in-
crease operating efficiency. This program is ex-
pected to cost the equivalent of $90 million and
to be completed in 1957.

Track, telecommunications, and repair facilities
are being impi-oved, rolling stock modernized, and
the existing fleet of steam locomotives is being re-
placed by diesels throughout the system. By the
end of 1952 the equivalent of $45 million had been
spent and about half the program completed. In
the meantime, the volume of freight carried has
risen to a level two-thirds greater than prewar.

The bank's loan will provide funds for the pur-
chase of 35 diesel mainline locomotives and 34
diesel switching engines for (lie two longest and
most heavily used lines, running from Dakar, in
the territorj^ of Senegal, into the Sudan, and from
Abidjan, in the Ivory Coast, into the Upper Volta.
Bids for the locomotives were solicited on an inter-
national basis, and French suppliers were success-
ful. The diesels will be cheaper to oi)erate than
the steam locomotives they will replace and can
be expected to pa}' for themselves in about 6 years.

The loan is for a term of 12 years and carries
interest at 414 percent, including the statutory
1-percent commission charged by the bank. The
equipment bought with the proceeds of the loan
will be used by the French West African Kail-
way Administration, which operates the railways
under the supervision of the Central Office for
French Overseas Kailwaj'S. The Central Office
is the borrower, and the loan is guaranteed by the
Republic of France.

After having been ajiproved by the bank's ex-
ecutive directors, the loan documents were signed
by His Excellency Henri Bonnet, Ambassador of
France to the United States, on behalf of the Re-
public of France ; by Fi-ederic Surleau, President
of the Central Office for French Overseas Rail-
ways, on behalf of the Central Office; by Henri
Cuneo, Inspector General of Public AVorks for
French Overseas Territories, on behalf of the
French West African Railway Administration;
and by Eugene R. Black, President, on behalf of
the International Bank.

Turkey's Armed Forces Get
$30 IVIiilion in FOA Funds

An allotment of $30 million to provide Turkey's
armed forces with such items as jet fuel, lubri-
cants, tires and batteries, and clothing was an-
nounced on June 15 by the Foreign Operations

992

Department of State Bulletin

Administration. This allotment is in addition to
substantial support being given Turkey in direct
military aid and $46 million previously allotted
in defense support f imds to bolster the defenses of
Turkey.

While Turkey still is a relatively underde-
veloped country, Foa said, a combination of
equipment, supplies, and technical exchange pro-
vided the country in the last 6 years has resulted
in a tremendous expansion and development of
the Turkish economy. Virtually all elements of
Turkish national life have benefited from the
ambitious economic development program upon
which Turkey has embarked.

In furtherance of programs to build a stronger
Turkey, the United States since 1948 has pro-
vided $353,500,000 (including the June 15 allot-
ment) in economic assistance, plus additional
millions in direct military aid.

FOA Authorizes Funds
for Korean Power Plants

The Foreign Operations Administration on
June 10 announced a $30 million authorization for
building three new thermal-electric power plants
in the Republic of Korea which will add 100,000
kilowatts to South Korea's power supply.

The power project is the largest single author-
ization approved for South Korea, and will pro-
vide a foundation upon which the country's over-
all economic rehabilitation may be achieved. It
and other power projects now under way will
quadruple the country's available power.

The $30 million authorization brings to $158
million the expenditures so far authorized out of
this fiscal year's $200 million Foa funds. Addi-
tional purchase requests from Korea, totaling $42
million, are being processed to complete the fiscal
1954 program.

Current U.N. Documents:
A Selected Bibliography

Economic and Social Council

Slavery. Report by the Secretary-General on Consulta-
tions Concerning the Desirability of a Supplementary
Convention on Slavery and its Possible Contents.
Supplementary Report by the Secretary-General
Under Council Resolution 475 (XV), Paragraph 8.

' Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New York 27, N. Y. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.

Report of the Social Committee. E/2585. April 28,
1954. 3 pp. mlmeo.

Allegations Regarding Infringements of Trade Union
Rights Received Under Council Resolution 277 (X).
Communication received from the International Con-
federation of Free Trade Unions. E/2587. April 29,
1954. 7 pp. mimeo.

Economic Development of Under-Developed Countries.
Report of the Economic Committee. E/2588. April
29, 1954. 10 pp. mimeo.

Resolutions Adopted by the Economic and Social Council
During its Seventeenth Session From 30 March to

30 April 1954. E/2595. May 11, 1954. 4 pp. mimeo.
Provisional Agenda for the Eighteenth Session of the

Economic and Social Council. Note by the Secretary-
General. E/2600. May 11, 1954. 5 pp. mimeo.
Expanded Programme of Technical Assistance for Eco-
nomic Development. Assistance to Countries and
Territories In the Latin American Region During

1953. E/CN.12/AC.24/3. December 30, 1953. 86 pp.
mimeo.

Comments on "Principles for Statistics of External Trade".
(Memorandum submitted by the representative of
the United States of America.) E/CN.3/173/Add.l.
March 29, 1954. 12 pp. mimeo.

Protocol for Limiting and Regulating the Cultivation of
the Poppy Plant, the Production of, International
and Wholesale Trade in, and Use of Opium. Draft
of a Model Code and Commentary for the Application
of the Protocol. E/CN.7/275/Add.l. April 13, 1954.
96 pp. mimeo.

Consideration of the Provisional Agenda for the Eight-
eenth Session of the Council. Preliminary annota-
tions to the draft provisional agenda for the eight-
eenth session contained in E/2530/Rev. 1. E/L.600.
April 26, 1954. 9 pp. mimeo.

Comparison of Provisions of Draft Conventions on Cus-
toms Formalities for the Temporary Importation of
Private Road Motor Vehicles Carrying Persons and
the Equipment of Such Vehicles ; and Summaries of
Comments Received. E/CONF.16/11. April 28, 1954.
50 pp. mimeo.

Comparison of Provisions of Draft Conventions on
Customs Formalities for Tourism; and Summa-
ries of Comments Received from Governments.
E/CONF.16/12. April 28, 1954. 21 pp. mimeo.

Financial Report and Accounts for the Year Ended

31 December 1953 and Report of the Board of Audi-
tors. E/ICEF/261. May 3, 1954. 53 pp. mimeo.

Draft Convention on Tourist and Commercial Vehicles
Used for the Transport of Tourists, Prepared by
the Government of France. E/CONF.16/15. May 5,

1954. 32 pp. mimeo.

Draft Conventions on (i) the Concessions and Facilities
to be Granted to Tourists, and (ii) the Importation
of Tourist Publicity Documents and Material, Pre-
pared by the French Government E/CONF.16/16.
May 5, 1954. 13 pp. mimeo.

Security Council

Letter Dated 22 April 1954 from the Permanent Repre-
sentative of Pakistan to the United Nations Addressed
to the President of the Security Council. S/3204.
April 22, 1954. 1 p. mimeo.

Letter Dated 26 April lO.'Vl from the Representative of
Israel Addressed to the President of the Security
Council. S/3210. May 6, 1954. 4 pp. mimeo.

Summary Statement by the Secretary-General on Matters
of Which the Security Council is Seized and on the
Stage Reached in Their Consideration. S/3207.
May 3, 1954. 2 pp. mimeo.

Letter Dated 3 May 1954 from the Permanent Repre-
sentative of Syria to the United Nations Addressed
to the President of the Security Council. S/320S.
May 3, 1954. 1 p. mimeo.

June 28, 7954

993

Anticipated Increase in Refugee Migration for 1954 and 1955

SEVENTH SESSION OF THE INTERGOVERNMENTAL COMMITTEE FOR EUROPEAN MIGRATION

by George L. Warren

The Intergovernmental Committee for Euro-
pean Migration, established on the initiative of
the U.S. Government at Brussels in 1951, is en-
gaged in facilitating the movement of migrants
and refugees out of Europe wlio would not other-
wise be moved. The Committee, which had met
in previous sessions at Brussels, AVashington,
Venice, and Geneva, held its seventh session at
Geneva from April 26 through May 1, 195-1.1
Sul>committees on draft rules and regulations and
on finance met between April 20 and 24 and during
the session to prepare the work of the plenary
session of the Committee.

The 24 member governments participating in
the seventh session were :

Argentina

Greece

Australia

Israel

Austria

Italy

Belgium v

Luxembourg

Brazil

Netherlands

Canada

Norway

Chile

Paraguay

Colombia

Swe(len

Costa Rica

Swilzprland

Denmark

Uruguay

France

United States

Germany

Venezuela

The United Kingdom, Spain, the Allied Mili-
tary Government of Trieste, and the Hoh' See
were represented by observers. The Sovereign
Order of Malta, the United Nations High Com-
missioner for Refugees, the International Labor
Organization, the U.N. Educational, Scientific
and Cultural Organization, the Food and Agri-
culture Organization, the Council of Europe, the
Organization for European Economic Coopera-
tion, and nongovernmental organizations and vol-
untary agencies interested in migration were also
represented by observers.

' For articles on the Committee's previous sessions, see
Bulletin of Feb. 4. 1952, p. 169: Apr. 21, 19.^2, p. 6.^S;
July 21, 1952, p. 107 ; Jan. 12, 1953, p. 64 ; June 22, 1953,
p. S79 ; and Jan. 4, 1954, p. 26.

994

Director's Statement

Former American Ambassador Hugh Gibson,
Director of the Migration Committee, made a
challenging statement to the government members
at the opening meeting of the session. Citing the
low volume of movement, 77.626 in 1952 and
87,501 in 1953, lie pointed out that a gradual in-
crease in movement had taken place since July
1953 and tliat 40,328 persons had been assisted to
find new homes overseas by the Committee in the
first 4 months of 1954, clearly indicating a total
movement for the year under the Committee's
auspices of approximately 120,000.

The operations of the Committee in the first 2
years had taken ])lace during a period of low
worldwide migration when immigration countries
for economic and political reasons had reduced
their intake of innnigrants. The Conmiittee
therefore found itself under the necessity of de-
veloping and encouraging new bilateral arrange-
ments between governments to reestablish the
higher flow of migrants that had taken place with
international assistance during the period from
1947 to 1951. Mr. Gibson stated that the increased
rate of movement already noted in recent months
had resulted not only from the action of govern-
ments in increasing their intake but largely from
special services provided by the Committee. The
Connnittee, he said, had assisted governments, at
their request, to improve their emigration and im-
migration procedures and had supplied special
services in the way of vocational and language
training and information to migrants concerning
immigration opportunities. A large part of the
increased movement had resulted, he stated, from
the Committee's recent efforts in Italy and Greece,
particularly to assist the reunion of families of
migrants who had gone in earlier years to
Australia, Argentina, and Brazil.

Mr. Gibson estimated that the present move-
ment of migrants assisted by the Committee con-

Deparfment of Sfofe Bullefin

statement by Secretary Dulles '

Mr. Chairman and honorable delegates, I welcome
this opportunity of addressing the Intergovern-
mental Committee for European Migration. Your
work is of intense interest to the United States, an
interest which is proved by the presence of our
United States legislators here, particularly Con-
gressman Reed and Congressman Walters, at so
many of your sessions.

I have come here merely to confirm, if any con-
firmation is needed, the interest which the United
States takes and which has already been so fully
shown.

Tour Committee, by reason of its struoture,_the
evidence of which is here about us, is well fitted to
work out the solution of the urgent problems of
excess populations and of their productive resettle-
ment. You are the only intergovernmental organi-
zation which, if adequately supported by its mem-
bers, can actually solve some of those difficult
problems.

There are many facts which show that your
organization is dealing successfully with its prob-
lems. I may mention only a few. I note that the
number of member governments has increased, so
that there are now 24. I note the fact that those
member governments have determined to establish
this Committee on a more permanent basis through
the adoption of a constitution.

Already, I understand, your Committee is re-
sponsible'for assisting the movement of one-third
of the yearly total number of migrants from conti-
nental Europe. The scope of your work is now being
extended and your activities are being broadened.
All of this represents solid progress and confirms
the farsighted intentions of your founders.

I alluded a moment ago to the interest which the
United States Government has taken in this work.
That interest derives from many factors. We know
that the growth of excess populations creates un-
employment with all its disturbing implications.
The problems with which you are dealing are not
unrelated to the defense and the security of the
entire free world.

All of this is of course of very direct interest to
the United States. Also, I may add, the humani-
tarian character of your task has a strong appeal.
The American people have always had a very deep
sympathy with whatever alleviates the sufferings
of mankind. These are a few of the many considera-
tions which justify continued United States support
of this organization.

I may add that it is encouraging to know that
this compact and active organization, with its clear-
cut agenda, is in fact able to reach constructive
decisions on its vital tasks. I hope the same may
prove true of the other Conference which I am
attending which goes on in this same building.

What you are doing here is proof that the free
governments can effectively join together in the
solution of great human problems. In this troubled
world where so many suffer and where so much
suspicion reigns, your Committee's work stands out
as a welcome shining light.

' Made before the Intergovernmental Committee
for European Migration at Geneva, Switzerland,
on Apr. 30.

stituted one-third of the total annual migration
from Europe and stated that he looked forward
confidently to an annual movement under the
Committee's auspices of 250,000. This target
would i^resent a challenge to the government mem-
bers to make sufficient resources available to the
Committee to permit full exploitation of the op-
portunities for migration presently envisaged.
The Conmiittee found practical application of
Mr. Gibson's observations in its later consideration
of the program proposed for 1955, which en-
visaged the movement of 156,700 under a total
budget of $50,035,675.

I\Ir. Gibson urged the governments also to give
early consideration to acceptance of the constitu-
tion proposed for the Committee at its sixth ses-
sion. He reported that eight governments —
Australia, Canada, Denmark, Israel, Italy, the
Netherlands, Sweden, and Switzerland — had al-
ready notified the Committee of their acceptance
of the constitution, which will give the Commit-
tee a more formal status and an anticipated life
span of at least 3 years from the date of entry into
force. Acceptances by 16 governments are re-
quired with other conditions to bring the con-
stitution into force.

The response to the Director's statement was
sympathetic although, as might be expected, many
government representatives stated that no finan-
cial commitments with respect to future years
could be made at that time. For the United
States, Chauncey W. Reed, Francis E. Walter,
and Mrs. Dorothy D. Houghton, alternate U. S.
representatives, assured the Committee of continu-
ing United States interest and support. Mr. Reed
stated that the question of United States partici-
pation in the Committee in accordance with the
con.stitution adopted at the previous session at
Venice was currently under consideration by the
Congress and predicted early favorable action.
Mr. Walter spoke of the lively interest in the Com-
mittee in the U. S. Congress, and Mrs. Houghton
presented a summary statement of the activities
of the United States Escapee Program and cited
the close collaboration existing between the pro-
gram and the Committee as a practical demonstra-
tion of United States support of the Committee's
efforts. Approximately 10,000 recent escapees
from Communist areas had been assisted in re-
settlement by the joint action of the Committee
and the Escapee Program.

In attendance at the meeting of April 30 were
Richard Casey, Minister of State for External
Affairs, Australia; John Foster Dulles, Secretary
of State, United States of America; Paul-Henri
Spaak, Minister of Foreign Affairs, Belgium ; and
Adrian Pelt, Director, European Office of the
United Nations. Mr. Casey and Mr. Dulles ad-
dressed the Committee briefly, confirmed the inter-
est of their respective governments in its work,
and commended the Committee for its efforts to
find solutions for a great human problem.

June 28, 1954

995

The report of the Director for 1953 disclosed
that the sources and destinations of 87,501 persons
moved during that year were as follows :

From. To

Austria 5,531 Argentina 9,022

Germany 40,325 Australia 13,326

Greece — 4,096 Brazil 12,702

Italy 20,975 Canada 36,922

Netherlands 2,296 Chile 776

Shanghai-Far East. 3, 259 Israel 2, 389

Trieste 1,367 tJ. S. A 6,365

Others 9,652 Venezuela 3.921

Others 2,078

87,501

87, 501

Of the 165,165 persons moved by the Committee
between February 1', 1952, and December 31, 1953,
47,000 were refugees under the mandate of the
Office of the United Nations High Commissioner
for Refugees.

On recommendation by the Ad Hoc Subcom-
mittee on Draft Rules and Regulations the Com-
mittee at^proved the texts of rules of procedure
for the Council and for the Executive Committee.
After the constitution comes into force, these rules
of procedure will be referred to the Council and
to the Executive Committee for adoption. Draft
staff and financial regulations were referred to a
later session of the Committee.

Acting on the report of the Subcommittee on
Finance, composed of Australia, Canada, France,
Germany, Italy, the Netherlands, and the United
States, the Committee accepted the financial re-
port for 1953, which showed income of $2,525,490
to cover administrative expenditure and income of
$30,886,080 for operational expenditure, a total
of $33,411,570. Administrative expenditure
totaled $1,970,302 and operational expenditure
$23,885,114, totaling $25,855,416.

Revised Budget for 1954

The Subcommittee on Finance recommended
and the Migration Committee adopted a revised
budget and plan of expenditure for 1954
envisaging the movement of 118,400 persons.
Administrative expenditure of $2,580,437 and
operational expenditure of $37,413,636 were ap-
proved, making the total budget adopted for 1954
$39,994,073.

The adoption of this budget presented the Com-
mittee with a challenge to raise $2,588,109 in ad-
ditional resources to cover an anticipated deficit
in that amount in the 1954 operations. The Com-
mittee was convinced that the anticipated deficit
would develop in fact because the movement of
persons in the first 4 months of 1954 totaled
40,328 and there was thus every indication that
the estimate of 118,400 in movement would be
achieved in 1954. In response to this situation the
Australian representative reported an offer of an
additional contribution of $400 thousand for 1954.
Denmark offered an additional $30 thousand and

Norway $14 thousand. The United States rep-
resentative, W. HaUam Tuck, offered on behalf
of the United States an additional contribution
totaling $1 million : $500 thousand to be made
available on the basis of movement achieved in
excess of 110,000 up to a maximum of 118,400, and
$500 thousand in consideration of comparable
contributions by other member governments to
cover the anticipated deficit.

In offering this special contribution, the United
States representative stressed again the need for
additional contributions by member governments
to the operational expenditure and expressed the
hope that the additional contributions offei'ed at
the seventh session would inspire otlier member

fovernments to make comparable contributions,
le also stressed the necessity for placing a larger
proportion of the movement achieved on a re-
volving-fund basis and urged that more of the
migrants be encouraged to contribute under par-
tial payment plans toward the costs of their
transport.

The Miration Committee recognized the close
relationship between the anticipated deficit in in-
come for 1954 and the need for the Committee
to establish the cash reserve proposed by the Di-
rector. The Director pointed out that such a
cash reserve would be needed in the fall months
of 1954, if the Committee were to be in a position
to finance its operations in 1955 and to make the
advance payments required. The Director urged
all governments to make payments on administra-
tive and operational contributions earlier and in
any event to make reimbursements for movements
effected by the Committee immediately on pres-
entation of invoices.

The Director originally proposed the establish-
ment of a cash reserve of $3 million : $1 million to
be allocated as a reserve for administrative ex-
penditure and $2 million for operational expendi-
ture. Contributions were to be made to the reserve
for administrative expenditure by all member gov-
ernments in accordance with the scale of contribu-
tions to the administrative expenditure already in
effect. However, the Director proposed that only
the emigration and immigration countries contrib-
ute to the cash reserve for operational expenditure.
The United States representative advised the
Committee that the United States would give
serious consideration to the request for a one-time
contribution to a cash reserve on a loan basis in
addition to the regular contribution, provided all
member governments were asked to contribute
approximately on the scale of contributions to
administrative expenditure to the total of the pro-
posed $3 million cash reserve. This proposal met
with some resistance from the so-called sympa-
thizing government members and the adminis-
tration on the ground that the sympathizing
governments were not prepared to share in the
costs of operations. After discussion the United
States view prevailed and was embodied in the

996

Deparfmenf of State Bulletin

final resolution aaopted by the Migration Com-
mittee requesting governments to provide funds
in the amount of $3 million on a loan basis for a
cash reserve. There was general acceptance by
the members of the Committee of the necessity for
establishing such a cash reserve during 1954.

Plans for 19S5

In considering the proposed plan of operations
and the budget and plan of expenditure for 1955,
the Subcommittee on Finance and the Migration
Committee recognized that their action was of a
preliminary nature because of the necessary budg-
etary procedures of many of the government mem-
bers and that final action on the 1955 budget would
be taken at the next session. After much discus-
sion an estimate of movement during 1955 totaling
156,700, including a movement of 50,000 to the
United States under the Refugee Relief Act of
WSS, was tentatively adopted. It was recognized
that this estimate would require a substantial in-
crease in the budget of the Committee and conse-
quently presented a challenge to the member gov-
ernments to increase their contributions. The esti-
mate of movement, however, appeared justified by
the current high rate of movement in 1954 and the
movements already planned and anticipated for
1955. An administrative budget of $2,491,728 and
an operational budget of $47,543,947, making a
total budget of $50,035,675, was adopted subject
to final review and determination at the eighth
session.

No commitments were made at the seventh ses-
sion by member governments with respect to their
contributions for 1955. The Committee, however,
had knowledge of the proposal currently under
consideration by the U.S. Congress that the United
States contribution be $11,700,000 for that period.
Assuming a United States contribution of $11,-
700,000, the budget as tentatively adopted called
for an increase in contributions by other govern-
ments over their present contributions of
$6,949,281.

The Committee was interested to learn that sub-
stantial success had been achieved since the previ-
ous session in reducing the refugee population in
Trieste to below 3,000. In the same period the
movement of European refugees out of Shanghai
through Hong Kong to overseas countries of re-
settlement was proceeding at a slower pace. The
Australian and Netherlands representatives re-
ported to the Committee that special efforts would
be made during 1954 and 1955 to increase the
current movement of migrants from the Nether-
lands to Australia by 15,000 under special arrange-
ments requiring the full support of the Com-
mittee.

Baron Eric O. van Boetzelaer (Netherlands)
presided at the opening session in the absence of
Fernando Nilo de Alvarenga (Brazil), chairman
of the sixth session. The following officers wei'e

June 28, 1954

unanimously elected to serve at the seventh ses-
sion: Chairman, J. Serres (France) ; First Vice
Chairman, D. Uzcategui-Ramirez (Venezuela) ;
Second Vice Chairman, Karl Fritzer (Austria) ;
Rapporteur, A. Donnadieu (Costa Rica). Baron
van Boetzelaer served as chairman of the Sub-
committee on Finance and Ralph L. Harry (Aus-
tralia) as chairman of the Subcommittee on Draft
Rules and Regulations.

The United States was represented at the ses-
sion by W. Hallam Tuck, member of the Person-
nel Task Force for the Commission on Organiza-
tion of the executive branch of the Government.
Alternate representatives were: Chauncey W.
Reed and Francis E. Walter, both Members of
the U.S. House of Representatives, and Mrs.
Dorothy D. Houghton, Assistant Director for
Refugees, Migration, and Voluntary Assistance,
Foreign Operations Administration. Advisers
were: George L. WaiTen, Adviser on Refugees
and Displaced Persons, Department of State;
Walter M. Besterman, staff member, and William
R. Foley, Committee counsel, Committee on the
Judiciary, U.S. House of Representatives; Rich-
ard R. Brown, Director, Office of Field Coordina-
tion, U.S. Escapee Program, Foa, Frankfort;
Col. Dayton H. Frost, Chief, International Pro-
grams Division on Refugees, Foa ; Albert F. Can-
well, Spokane, Wash. ; and Robert Hubbell, Labor
Specialist, U.S. European Regional Organization
(Foa), Paris. Harold D. Cooley, Member of the
U.S. House of Representatives, visited the Com-
mittee at its opening session.

The eighth session of the Committee will be
held in November 1954 at Geneva unless the com-
ing into force of the constitution requires that a
meeting be called earlier.

• Mr. Warren, author of the above article, is
Adviser on Refugees and Displaced Persons,
Department of State.

U.S. Encouragement
of International Travel

Following is the text of a letter dated June 8
addressed hy Clarence B. Randall, special con-
sultant to the President, to Jacol K. Javits,
Member of the House of Representatives: ^

The WnrpE House,
Washington, June 8, 1951t~

Dear Congressman Javits : Following through
further with respect to your letter of May 19,
1954,= I am happy to give you this summary of

' Reprinted from Cong. Rec. of June 15, 1954, p. A4386.
' Not printed here.

997

steps taken by tlie executive branch with respect
to the encouragement of international travel.

One of the most significant recent developments
has been the emphasis which the President placed
on the expansion of international travel in his
message to the Congress of March 30 on the sub-
ject of foreign economic policy.^ After stressing
the cultural, social, and economic advantages to
the whole free world of international travel, he
stated :

I shall instruct the appropriate agencies and depart-
ments, at home and abroad, to consider how they can
facilitate international travel. They will be asked to take
action to simplify governmental procedures relating to
customs, visas, passports, exchange, or monetary restric-
tions and other regulations that sometimes harass the
traveler.

A bill, H. R. 8352, was introduced by Congress-
man Frelinghuysen to give effect to the one spe-
cific legislative recommendation made by the Pres-
ident in connection with international travel.
This bill would increase the duty-free allowance
for tourists from $500 to $1,000, exercisable every 6
months.

To implement further his recommendations in
this field, the President has recently sent memo-
randa to the four principal agencies concerned
with international travel, namely, the Depart-
ments of State, Commerce, Treasury, and Justice,
requesting them to take the necessary stejis to carry
out his recommendations.

As a further follow-up on tliis section of the
President's message I have asked tbe Departments
of Agriculture, and of Healtli, Educuticm, and
Welfare to reexamine the provisions of the i)lant
and animal quarantine laws and the Pure Food
and Drug Act, and tlie administration therefor,
to determine whether there are any inecpiities in
the application of these laws to foreign connnodi-
ties as compared with domestic connnodities. It
is understood witli the staff of each of these de-
partments that these reviews although more gen-
eral than the tourist problem do cover any aspects
of these laws or their enforcement which affect
tourists.

Consistent with the President's emphasis on the
importance of international travel is the request
by the Department of Commerce, now pending
before the Congress, for a small amount of money
with which to reestablish an office devoted exclu-
sively to the development of tourist travel. If this
money is appropriated by the Congress, it will be
possible to do considerably more in the way of pro-
viding adequate statistics on travel, determining
what factors tend to hinder travel, reviewing for-
eign regulations and procedures with a view to
suggesting through diplomatic channels changes
in these regulations and procedures which would
facilitate travel, and so on.

' Bulletin of Apr. 19, 1954. p. 602.

Simplified Customs Procedures

The Bureau of Customs has instituted various
new procedures designed to make it easier for
travelers to pass through the United States cus-
toms. Examination of travelers' personal luggage,
particularly that accompanying the traveler, has
been reduced to the minimum consistent with ade-
quate enforcement of our laws. "Within the past
2 years steps have also been taken to reduce the
formalities involved when a tourist makes a pur-
chase abroad and sends it home separately. An
experiment which holds great promise has been
underway for some time in conjunction with Can-
ada. This is a procedure whereby travelers leav-
ing certain Canadian points and going directly to
the United States are examined before leaving
Canada, and are thus not delayed at all upon
reaching the United States border. This proce-
dure may be extended to other nearby countries if
the necessary cooperation of those countries can
be secured. At present officials of the Treasury
Department do not think such a system would
prove feasible for the more remote countries, for
example. Western European or South American
countries.

Representatives of this country are actively
engaged in discussions with those of other coim-
tries, both through individual meetings and
through multilateral confei'ences, to find ways of
simplifying border formalities and otherwise to
facilitate international travel. We are at the pres-
ent time, for example, represented at the United
Xations Conference on Customs Forntalities for
tlie Tem])orary Importation of Private Vehicles
and for Tourism. This conference is seeking to
reach agreement on a protocol to the (Jeneva Con-
ference of 1948 for the purpose of establishing
uniform regulations covering automobiles and
auto travel and to arrive at international agree-
ment on the regulations covering personal belong-
ings accompanying a tourist. The United States
will also shortly send its delegation to the Fifth In-
ter-American Travel Conference, to be held this
year, June 10-20, in Panama. Active considera-
tion is now being given by this Government to a
recommendation for placing tourism on the agenda
of the forthcoming Inter-American Conference of
Ministers of Finance or Economy, to be held at
Rio de Janeiro.

In addition to discussing the problems of tourist
travel with other nations at conferences, this Gov-
ernment is now taking advantage of all opportuni-
ties as they arise to impress on other nations the
importance we attach to international travel and
to urge upon them the appropriate actions to
encourage such travel. You are no doubt aware
that the President, the Secretary of Commerce,
the Under Secretaiy of Commerce, the Assistant
Secretary of Commerce for International Affairs,
the Assistant Secretary of State for Economic
Affairs, and I all met with the delegation of lead-

998

Department of State Bulletin

ing European travel ofBcials, members of the Euro-
pean Travel Commission, which was recently in
this country.

Travel Talks With Foreign Officials

The Department of State has established new
2>rocedures to insure that the question of inter-
national travel will be discussed wherever appro-
priate with visiting foreign officials, as was clone
in the case of the recent visit of high-level Spanish
officials. Steps are now being talven by the Depart-
ment of State to see that the basic standing in-
struction to all our foreign service personnel will
take specific account of the emphasis placed on
international travel by the President. This will
further insure that the subject will be given ade-
quate attention in future discussions with other
nations.

One special aspect of our international discus-
sion on the question of international travel per-
tains to the visa which some nations, including this
one, require for entry by nonresidents of the coun-
try. The necessity for a visa is often a burden to
the traveler, particularly if he intends to visit sev-
eral countries, each of which requires a visa. The
State Department lias been successful in securing
the mitigation of certain onerous regulations con-
nected with the visa or the outright discontinu-
ance of the visa requirement for American travel-
ers to a number of countries, including all of the
countries of Western Europe.

Another way in which this Government can help
other countries stimulate tourist travel is through
giving these other governments, when they request
it, technical advice on travel and tourist accommo-
dations. The Department of Commerce is the
agency which provides this technical assistance.
With the use of funds of the Foreign Operations
Administration the Department of Commerce
within the past year has sent two travel techni-
cians abroad, and two persons have been brought
to this country from abroad, to study our methods
of accommodating tourists, publicity, statistics,
and otlier technical aspects of tlie field.

No doubt you are aware that the Department of
Commerce has recently establisiied a travel advis-
ory board composed of 20 high-level representa-
tives of the travel and tourist industry. Tliis com-
mittee was organized too recently to have had any
significant impact on the Government as yet. but
there is good reason to hope that it will prove very
beneficial.

Anotlier step taken by the executive branch
which indirectly should assist international travel
concerns the President's recommendations for re-
visions in the tax laws, now embodied in H. R.
8300. Tliis bill would provide certain tax in-
centives to American corporations for investing
overseas. These incentives would tend to make it
more attractive for American hotel corporations
to build hotels abroad. Lack of hotel facilities or

inadequate hotels is, as you know, one of the fac-
tors frequently cited as a deterrent to greater
travel abroad.

One further area where the efforts of this coun-
try, combined with those of other free nations,
may have a very marked effect on international
travel is that of currency convertibility. At the
present time, the inability of travelers to convert
foreign currencies readily from one to another is
an inconvenience, particularly if they are going to
visit two or more countries. One of the basic ob-
jectives of tliis administration as enunciated in
the President's message on foreign economic pol-
icy is the creation of those conditions in the world
which will permit major currencies to become con-
vertible. International travel will be greatly
facilitated thereby.

In concluding this, may I mention that the issu-
ance of passports, as an indication of the prospec-
tive level of international travel by Americans, is
already very high. Whereas in previous years, the
rate of 50,000 or more passports issued in 1 month
was not attained until April or even May, in prepa-
ration for this summer's travel, over 50,000 pass-
ports were issued this year in the month of March,
and it seems possible that we might reach an all-
time peak of over 60,000 passports issued in the
month of May. This is a hopeful sign for a very
big tourist year.

I agree fully that the promotion of tourist travel
is of great significance to this Nation and to all
other free nations. I shall be glad to do anything
that I can to be of assistance.

Please let me know if I can be of any further
service to you.

Sincerely yours,

Clarence B. Randall,
Special Consultant to the President.

Current Legislation on Foreign Policy:
83d Congress, 1st Session

Tensions Within the Soviet Captive Countries : Soviet
Zone of Germany. Prepared at the request of the
Senate Committee on Foreign Relations by the Legis-
lative Reference Service of the Library of Congress.
S. Doc. 70, Part 3, July 2S, 1953, VIII, pp. 53-84.

83cl Congress, 1st and 2d Sessions

stockpile and Accessibility of Strategic and Critical Ma-
terials to the United States in lime of War. Hearings
before the Special Subcommittee on Minerals. Ma-
terials and Fuels Economics of the Senate Committee
on Interior and Insular Affairs pursuant to S. Res.
143, a Resolution To Investigate tlie Accessibility and
Availability of Supplies of Critical Raw Materials.
Part 7, Tariffs and Taxes and Their Relationship to
Critical Materials, (October 23, 1953 ; Febnuiry 24 and
March 5, 1954, VI, 320 pp.

June 28, ?954

999

83d Congress, 2d Session

Review of the United Nations Cliarter. Hearing before
a Subcommittee of the Senate Clommittee on Foreign
Relations on Proposals To Amend or Otherwise
Modify Existing International Peace and Security
Organizations, Including the United Nations. Part 2,
February 12, 1954, Akron, Ohio, III, pp. 63-150.
First International Instrument Congress and EJxposition.
Hearing before the Subcommittee on Europe of the
House Committee on Foreign Affairs on H. J. Res. 257,
Authorizing the President To Invite the States of the
Union and Foreign Countries To Participate in the
First International Instrument Congress and Exposi-
tion To Be Held in Philadelphia, Pa., from September
13 to September 25, 1954. March 11, 1954, III, 18 pp.
Review of the United Nations Charter. Hearing before a
Subcommittee of the Senate Committee on Foreign
Relations on Proposals To Amend or Otherwise
Modify Existing International Peace and Security
Organizations, Including the United Nations. Part 3,
April 10, 1954, Milwaukee, Wis., IV, pp. 151-318.
The Problem of Membership in the United Nations. Staff
Study No. 3, Subcommittee on the United Nations
Charter of the Senate Committee on Foreign Rela-
tions. Committee print. May 21, 1954, V, 20 pp.
Federal Republic of Germany. Report to accompany S.

1573. S. Rept. 1391, May 24, 1954, 4 pp.
Foreign Service and Departmental Personnel Practices of
the Department of State. Sixteenth Intermediate
Report of the House Committee on Government Oper-
ations. H. Rept. 1673, May 25, 1954, III, 24 pp.
Authorizing the Erection of a Memorial Gift from the
People of the Netherlands. Report to accompany
H. J. Res. 356. H. Rept. 1681, May 26, 1954, 3 pp.
Protocol Amending the Slavery Convention of September
25, 1926. Message from the President Transmitting
a iProtocol Amending the Slavery Convention, Signed
at Geneva on September 25, 1926, Was Opened for
Signature at the Headquarters of the United Nations,
New York, on December 7, 1953, and Was Signed on
Behalf of the United States on December 16, 1953.
S. Exec. F, May 27, 1954, 7 pp.
Organized Communism in the United States. H. Rept.

1694, May 28, 1954, VII, 150 pp.
International Lalxjr Conference. Message from the Presi-
dent Transmitting Authentic Texts of a Recommenda-
tion (No. 91) Concerning Collective Agreements and
a Recommendation (No. 92) Concerning Voluntary
Conciliation and Arbitration, Both of Which Were
Adopted on June 29, 1951, by the International Labor
Conference at Its 34th Session, Held at Geneva from
June 6 to 29, 1951. H. Doc. 406, May 28, 1954, 10 pp.
International Labor Conference. Message from the
President Transmitting Authentic Text of a Conven-
tion (No. 102) Concerning Minimum Standards of
Social Security, Adopted on June 28, 1952, by the
International Labor Conference at Its 35th Session,
Held at Geneva from June 4 to 28, 1952. H. Doc. 407,
May 28, 1954, 30 pp.
Extending the Authorization for Funds for the Hospitali-
zation of Certain Veterans in the Philippines. Re-
port to accompany H. R. 8044. S. Rept. 1480, June 2,
1954, 13 pp.
Providing for a Continuance of Civil Government for the
Trust Territory of the Pacific Islands. Report to ac-
company S. 3318. S. Rept. 1482, June 2, 1954, 4 pp.
Inviting Nurse Genevieve de Galard-Terraube To Be an
Honored Guest of the United States. Report to ac-
company H. Con. Res. 236. S. Rept. 1507, June 4,
1954, 2 pp.
Report of the President's Adviser on Personnel Manage-
ment on Pay and Personnel Practices of Federal
Employees Stationed Overseas. First Intermediate
Report to the House Committee on Post Office and
Civil Service by the Subcommittee on Manpower
Utilization. H. Rept. 1760, June 7, 1954, IX, 31 pp.

Proposed Draft Language for the Refugee Relief Program.
Communication from the President Transmitting Pro-
posed Draft Language for the Fiscal Year 1955 for the
Refugee Relief Program. H. Doc. 422, June 7,
1954, 2 pp.

Authorizing the Appropriation of Additional Funds To
Complete the International Peace Garden, N. Dak.
Report to accompany H. R. 3986. S. Kept. 1533, June
8, 1954, 4 pp.

Providing for a Continuance of Civil Government for the
Trust Territory of the Pacific Islands. Report to
accompany H. R. 8754. H. Rept. 1767, June 8, 1954,
5 pp.

Authorizing the Secretary of Commerce To Further Ex-
tend Certain Charters of Vessels to Citizens of the
Philippines. Report to accompany S. J. Res. 72. H.
Kept. 1769, June 8, 1954, 2 pp.

Adoption of Constitutional Amendments. Report to ac-
company S. Res. 144. S. Rept. 1534, June 9, 1954,
2 pp.

Agricultural Trade Development and Assistance Act of
1954. Report to accompany S. 2475. H. Rept. 1776,
June 9, 1954, 12 pp.

Trade Agreements Extension. Report to accompany
H. R. 9474. H. Rept. 1777, June 10, 1954, 4 pp.

Communications Act Amendments Implementing Safety of
Life at Sea Convention. Report to accompany S.
2453. S. Rept. 1583, June 11, 1954, 21 pp.

Permitting Investment of Funds of Insurance Companies
Organized Within the District of Columbia in Obli-
gations of the International Bank for Reconstruction
and Development. Report to accompany H. R. 8974.
H. Rept. 1814, June 11, 1954, 3 pp.

Amending the Federal Food, Drug, and Cosmetic Act
Keliiting to the Labeling of Packages Containing For-
eign-Produced Trout. Report to accompany S. 2033.
H. Rept. 1850, June 11, 1954, 10 pp.

TREATY INFORMATION

Grant Economic Assistance
Agreement With Jordan

Press rel«a8e 319 dated June 15

The first basic grant economic-assistance agree-
ment between the U.S. Government and an Arab
State was concluded at Amman, Jordan, on May
13, the date of the note of acceptance from the
Jordanian Foreign Minister. The agreement com-
plements the point 4 general agreement of Febru-
ary 1951 and for the first time provides for U.S.
contributions to projects of a capital development
nature, as provided from funds for special eco-
nomic assistance authorized and appropriated by
the U.S. Congress.

It is generally similar to standard agreements
of its kind concluded by the United States with
other recipient nations throughout the world. It
sets the framework within which economic aid
will be extended. Within certain limitations, the
total to be committed in the current fiscal year

1000

Deparlment of State Bulletin

will depend upon the nature and number of indi-
vidual projects that are mutually agreed upon be-
tween the two Governments.

Projects currently under consideration are in
the general fields of irrigation, exploration and
utilization of ground water, range development
including the extension of water spreading, affor-
estation, and road construction.

Current Actions

MULTILATERAL
Copyrights

Universal copyright convention and three Protocols an-
nexed thereto.' Done at Geneva September 6, 1952.
Accession deposited: Pakistan, April 28, 1954.

Cultural Relations

Agreement for facilitating the international circulation of
visual and auditory materials of an educational, scien-
tific and cultural character, and protocol. Opened for
signature at Lake Success July 15, 1949.
Enters into force: August 12, 1954.'

North Atlantic Treaty

Agreement Between the Parties to the North Atlantic
Treaty Regarding the Status of Their Forces. Signed
at London June 19, 1951. Entered into force August 23,
1953. TIAS 2846.

Ratification deposited: United Kingdom, May 13, 1954.
Accession deposited: Turkey, May 18, 1954.

Protocol on the Status of International Military Head-
quarters. Signed at Paris August 28, 1952. Entered
into force April 10, 1954.

Ratification deposited: Turkey, May 18, 1954.
Proclaimed by the President: June 7, 1954.

Telecommunications

International telecommunication convention and six an-
nexes. Signed at Buenos Aires December 22, 1952.
Entered into force January 1, 1954.'
Ratification deposited: Norway, May 11, 1954.

Trade and Commerce

Third protocol ' of rectifications and modifications to texts
of the schedules to the General Agreement on Tariffs
and Trade (TIAS 1700). Done at Geneva October 24,
1953.
Signature: Pakistan, May 18, 1954.

War

Geneva convention for the amelioration of the condition

of the wounded and sick in armed forces in the field ;
Geneva convention for the amelioration of the condition

of the wounded, sick and shipwrecked members of the

armed forces at sea ;
Geneva convention relative to the treatment of prisoners

of war ;
Geneva convention relative to the protection of civilian

persons in time of war.

Dated at Ceneva August 12, 1949.'

Ratification deposited: Union of Soviet Socialist Re-
publics, May 10, 1954.

Weights and Measures

Convention amending the convention relating to weights
and measures. Dated at Sevres October 6, 1921. En-
tered into force February 10, 1923. TS 673.
Adherence deposited: Brazil, April 14, 1954.

BILATERAL
Honduras

Military assistance agreement. Signed at Tegucigalpa
May 20, 1954. Entered into force May 20, 1954.

Jordan

Agreement relating to economic assistance. Effected by
exchange of notes at Amman May 4 and May 13, 1954.
Entered into force May 13, 1954.

Lebanon

Agreement amending Articles II and VI of the program
agreement for technical cooperation of June 26, 1952,
as amended (TIAS 2659 and 2821). Signed at Beirut
April 30, 1954. Entered into force April 30, 1954.

Agreement amending Articles VI and VII of the program
agreement for technical cooperation of June 26, 1952, as
amended. Signed at Beirut April 30, 1954. Elntered
into force April 30, 1954.

Norway

Memorandum of understanding on conflicting claims to
enemy property. Signed at Washington June 21, 1952.
Entered into force: April 27, 1904 (upon receipt by each
Government of notification from the other Govern-
ment of approval).

STATUS LIST'

Agreement on the Status of the

North Atlantic Treaty Organization, National

Representatives and International Staff*

Opened tor signature at Ottawa September 20, 1951. Signed
September 20, 1951 by Belgium, Canada, Denmark, France,
Iceland, Italy. Luxembourg, the Netberlands, Norway, Portugal,
the United Kingdom of Great Britain and Northern Ireland,
and the United States of America. Signed October 2, 1953
by Turkey.

Denmark

Iceland

Netherlands

Norway

United States of

America.
Turkev

Date of deposit of Instru-
ment of ratification

Date of entry into
force

May 7, 1952

May 11, 1953

Julv 14, 1952'

February 24, 1953_
July 24, 1953 «

May 18, 1954

Mav 18, 1954
Mav 18, 1954
Mav 18, 1954
Mav 18, 1954
May 18, 1954

May 18, 1954

■ Not in force.

' Not in force for the United States.

3 As of June 15, 1954.

* Declaration by the Governments of Belgium, Luxem-
bourg, and the Netherlands regarding this agreement
signed September 20, 1951. An extract was signed by the
Council Deputies on December 12, 1951 regarding discrep-
ancies in the English and French texts of articles 14 and 16
of this agreement, -^n agreed minute was signed by the
Council Deputies on April 4, 1952 at London modifying
this agreement.

' Instrument of ratification included the declaration.

' Instrument of ratification included the extract.

June 28, 7954

1001

Initiation of Recommendations in Wriston Report

Folloxoing are the texts of a letter of June 15
from Secretary Dxdles to Dr. Henry M. Wriston,
chairman of the Public Committee on Personnel,
and a letter of May 18 from the Coinmittee to
Mr. Dulles tranjimitting the Committee^s re-port.

LETTER FROM SECRETARY DULLES TO
DR. WRISTON >

Press release 322 dated June 15

June 15, 1954

Dear Dr. Wriston: I have received and care-
fully studied the report of the Public Committee
on Personnel transmitted by your letter of May IS.
At my instruction, the report has been printed
and is being released today .=

I should like to commend the Committee for
the thorough and penetrating manner in which
its public-spirited members, under your able
chairmanshii), have dealt with the very difficult
persoiniel and administrative jiroblems of the De-
partment of State. It was the complexity and
vital importance of these problems, most of which
have been recognized — but left unsolved — for some
years, that persuaded me to seek approi)riate cor-
rective recommendations from this group of out-
standing private citizens.

I felt that this study could not be attempted
while the Department and Foreign Service were
undergoing the dislocations of the reduction-in-
force necessitated by budgetary restrictions. With
that obstacle passed, we could proceed. Accord-
ingly, I share the view of the Committee that now
is the time for action.

I have been particularly concerned that the pro-
fessional service, which bears the responsibility
for carrying out the vastly intricate business of

' Press release 322 also contains the text of a message,
not printed here, from Secretary Dulles to personnel of
the Department and Foreign Service concerning the
report.

'Toward a Stronger Foreign Service: Report of the
Secretary of State's Pulblic Committee on Pcrsontiel, June
1954, Department of State publication 5458, for sale bv
the Superintendent of Documents, U.S. Government I'rint-
ing Office, Washington 25, D.C., 30 cents.

1002

foreign affairs, has not expanded and broadened
to meet the growing demands of today in the
maimer envisioned by the Congress when it passed
the Foreign Service Act of 1946. I am, therefore,
particularly pleased that the Committee's recom-
mendations not only embody an immediate pro-
gram for strengthening this service, but also
provide a long-range method of maintaining that
essential strength.

As a fir.-;t and fundamental step, I have today
recommended, and the President has agreed to,
the nomination of Mr. Charles E. Saltzman as
Under Secretary of State for Administration.
Mr. Saltzman, who served as one of the members
of the Public Committee, is also a former Assist-
ant Secretary of State. He will have the duty
of initiating and directing the execution of this
new program. Under my supervision he will also
be in complete charge of the administrative of-
fices and operations of the Department, and will,
of course, nave my full support in carrying out
his mission.

Mr. Thruston Morton, with exceptional ability
and devotion to public service, has been carrying
the additional job of Acting Deputy Under Sec-
i-etary for Administration. Mr. Saltzman's ap-
pointment will enable Mr. Morton once again to
devote full time to his duties as Assistant Secre-
tary for Congressional Relations. I am grateful
to him for the administrative leadership he has
l)rovided during the inteiim jieriod while the
Committee was formulating its reconnnendations.

Mr. Saltzman believes, and I concur, that tliis
new ])rogram can be fully launched and well un-
derway by December 31, 1954, at which time the
statutory authority for the position of Under
Secretary of State for Administration expires,
and at which time Mr. Saltzman intends to return
to his business, from which he is taking a leave of
absence.

I heartily endorse the two key recommendations
made by the Committee :

A. Integration of the personnel of the Depart-
mental home service and the Foreign Service
where their functions and responsibilities con-
verge.

B. The bold and imaginative recruitment and
scholarship program whereby the Foreign Service

Deparfment of State Bulletin

would obtain a constant and adequate flow of
qualified young men and women representing the
best cross section of American life. Under this
program, members of Congress would in the fu-
ture have a part in selecting the candidates for
the Foreign Service Corps, much as they now do
for "West Point and Annapolis.

I have issued instructions to initiate these for-
wardlooking recommendations. Specifically, I
have taken the following actions :

1. By signing certain orders, I have accepted as
valid your central recommendation that those of-
ficers of the Departmental home service and the
Foreign Service who perform similar and related
functions should be integrated into one personnel
system. Such a system, as you point out, can
fortunately be built, in large part, on the excel-
lent existing statutory foundation of the Foreign
Service Act of 1946. '

2. I believe, with the Committee, that the na-
tional interest dictates the creation of a Foreign
Service Officer Corps (Fso) that is more flexible
and broadly versatile than at present. We must
take into particular account the need for special-
ized skills in the solution of the vastly complex
problems of today. I have directed that this be
done.

o. I have accepted the Committee's recommen-
dation that a substantial numl>er of Departmental
positions, probably about 1,450, be designated for
staffing by the Fso Corps, and that the present
incumbents of those positions be encouraged to
enter the new Foreign Service to serve at home or
abroad, as the Department's needs require.

4. I also agree that all officer positions abroad
under the Chiefs of Mission should be similarly
designated, and members of the Foreign Service
Reserve (Fsr) Corps and such of the Foreign
Service Staff (Fss) Corps as presently hold those
positions should likewise be encouraged to enter
the Fso group.

5. I have endorsed the Committee's recommen-
dations that a revised and liberalized examination
process should be instituted to effect these trans-
fers, which I expect will raise the strength of the
Fso Corjjs from about 1,300 to nearly 4,000.

6. I have issued instructions to consult with
appropriate members of the Congress regarding
the Committee's report and its recommendations
with the objective of putting into effect as quickly
as possible the fundamental recommendations of
the Committee related to the proposed integra-
tion program. I understand from your report
that certain minor amendments to existing legis-
lation will be necessary to carry out this program.

7. I have also directed that action be taken to
seek legislative authority for the scholarsliip pro-
gi'am proposed by the Committee. This program,
providing for two-year scholarship awards to out-
standing young men and women after competitive
examinations, would insure the constant renewal

of the Foreign Service from colleges in all parts
of the country. It seems to me that the scholar-
ship program is a most important and unique
feature of the Committee's recommendations.

8. I agree with the Committee that Con-
gressional appointment to the comf)etitions for
the majority of these scholarships is desirable,
with the Executive Branch having an appropriate
share.

9. Since the scholarship training program will
require legislative sanction and, in any case, will
take time to initiate, there is need for immediate
and interim action. I am particularly gratified
that the Committee considered this factor, and I
have adopted the recommendations to modernize
and speed up the examining and appointment
procedures for Foreign Service officers of the
jbeginning grade.

10. I have endorsed your recommended steps to
insure that entering officers will be truly repre-
sentative young men and women, from all sections
of our country.

11. I agree with the Committee's analysis of the
importance of the training function of the For-
eign Service Institute in preparing our diplomatic
officers for their tasks, and for inculcating in them
the skills and knowledge so necessary in the prac-
tice of present day foreign affairs. To this end,
I have accepted your recommendations for
strengthening the Institute so that it will have a
status more nearly equivalent to that of our war
colleges, as envisioned by the Congress when it
enacted the Foreign Service Act of 1946.

12. I am completely in agreement with the
Committee's views on the importance of establish-
ing a true career development system, especially
as reflected in the training and assignment of the
Department's personnel. Only through the exist-
ence of such a system can the Dejiartment attract
and hold the highly qualified and dedicated body
of men and women who must make up our pro-
fessional service.

These, it seems to me, are the basic recommenda-
tions of the Committee, and they will be put into
effect as rapidly as possible. There are, of course,
a few other detailed recommendations dealing
with personnel administration which require
further study by myself and the other senior offi-
cers of the Department. I have in mind such
suggestions as those concerning the inspection
function, allowances and retirement benefits, and
leave and salary adjustments. I shall see that
this study is vigorously carried forward.

I am glad to have the Committee's endorsement
of the Department's present effort to complete its
security screening program as quickly as possible.
We shall continue that effort, and shall equally,
of course, continue to insure that this program
is administered with the most careful fairness
and objectivity.

Please allow me to express to you, and to the
other members of the Committee, my appreciation

June 28, 1954

1003

of your efforts and my conviction that you have
made a substantial contribution to the strength
and future of the Department of State and its

career service.

Sincerely yours,

John Foster Dulles

LETTER FROM COMMITTEE TO
SECRETARY DULLES

Mat 18, 1954

Dear Mr. Secretary : Pursuant to the terms of
reference issued on March 5, 1954, by Acting Sec-
retary of State Walter B. Smith, we submit here-
with the Public Committee's Report.

Your recognition of deficiencies needing cor-
rection led to the appointment of this Committee.
It has had the cooperation and active assistance
of officers under your administrative leadership.
The fact at once became obvious that administra-
tive reform had to take second place to the de-
velopment of a dynamic foreign policy under the
conditions of acute emergency that have prevailed
in many parts of the world. At the same time the
administrative problem was itself made more
difficult because of national budgetary decisions
that compelled the Department of State to absorb
a reduction-in-force of more than 22 percent of its
strength.

The dislocations incident to that reduction and
to the new security measures are disappearing;
the Committee urges that now is the time for
action with respect to the professional service
under your direction.

The fundamental recommendations of this
Committee are two :

(1) To integrate the personnel of the Depart-
ment of State and of the Foreign Service, where
their official functions converge, into a single ad-
ministrative system, thus putting an end to the
institutional separateness of these main function-
ing arms of United States diplomacy.

(2) To improve and broaden the recruitment
methods of the Foreign Service, utilizing among
other things a nationwide system of competitive
scholarships, so as to provide a steady and ade-
quate flow of officer material into the integrated
service — a flow which, at the same time, will be
more fully representative, in its excellence and
variety, of the best of American youth.

This latter recommendation aside, most of the
reforms proposed in the attached Eeport, as they
pertain to a more broadly based and stronger
Foreign Service, could have been achieved by an
aggressive administration of the Foreign Service
beginning with the effective date of the Foreign
Service Act late in 1946.

A study of the Foreign Service Officer corps'
present strength, insofar as that strength is a

7004

product of the Act of 1946, reveals these important
figures :

— Only 355 officers have been examined and ap-
pointed to the beginning officer class since No-
vember 13, 1946, and of this number not a
single junior appointment has been made to the
Service since August 1952 ;
— Only 51 experienced Government and De-
partmental personnel have entered the Foreign
Service at higher officer ranks as established m
the Act's lateral entry provision ; and
— The Foreign Service Officer corps today num-
bers 1,285, the lowest strength in the last five
years.

The Hoover Commission in 1949 and the Sec-
retary of State's Advisory Committee on Per-
sonnel in 1950 made recommendations on the
subject of strengthening and increasing the size
of the Foreign Service.

These reports did not result in any measurable
action, and it is this Committee's considered judg-
ment that, had proper and prompt steps been
taken during those years, much valuable time
would have been utilized in developing the For-
eign Service along the lines this Report proposes.

Vigorous administrative action coupled with
full and spirited cooperation on the part of For-
eign Service and Departmental officei's is essential
to the success of every part of the Public Com-
mittee's Report you approve.

Over the long tei-m, the Report places great
emphasis on building the Foreign Service by an
annual recruitment conducted nationally for For-
eign Service Officere to be commissioned at the
beginning rank and by an intensified and produc-
tive training and career development program
for all Foreign Service Officers.

In order to attain the end upon which there is
agreement in every quarter, the Committee rec-
ommends a foreign service scholarship program
modeled after the successful naval reserve officers'
training plan. The purpose is to insure, so far as
it can be done, a representation of every part of
the country in the Foreign Service, and to be cer-
tain that the democratic ideal, long since embodied
in the recruitment of the Foreign Service, may be
even more fully realized.

NoRMAx ARsrouR Robert Murphy

JoHx A. McCoNE Ex Officio Member

MoREHEAD Patterson John Hay WnrrNEY
Donald Russeli. Vice Chairman

Charles E. Saltzman Henry M. Wriston

Chmrman

Designations

Henry P. Lerericb as Acting Deputy Director of the
OflSce of Eastern European Affairs, effective Jlay 26.

Robert M. McKlsson as Acting Offleer-inCharge of
Balkan Affairs witliin the OflSce of Eastern European
Affairs, effective May 26.

Department of Sfafe Bulletin

PUBLICATIONS

German War Documents
Volume Released

Press release 317 dated June 12

The honeymoon period of Nazi-Soviet collabo-
ration and the so-called "phony war" provide the
main themes for the latest volume of Documents
on German Foreign Policy, 1918-19Ji5, released
on June 19 by the Department of State. The new
volume is the eighth in the series being published
cooperatively by the American, British, and
French Governments from the archives of the
German Foreign Ministry captured by Allied
forces at the close of World War II. It begins
with the entrance of the United Kingdom and
France into the war and ends with the invasion of
Norway immediately in the offing, and bears the
subtitle: The War Tears, September 4, 1939-
March 18, 19^0.

Nazi-Soviet relations bulk largest in the volume.
One hundred and eleven documents bearing di-
rectly on this subject are included in the selection.
With the defeat of Poland in September, the Ger-
mans and Soviets were led to reexamine their
agreements for the division of Poland and the
Baltic States, and at the end of September Rib-
bentrop made another visit to IVJoscow. Import-
ant reports by Ribbentrop and Hencke, a senior
German diplomat, concerning this visit are pub-
lished for the first time. Also fully documented
for the first time are the negotiations for the ex-
change of materials of war and goods between the
IJ.S.S.R. and Germany during the winter of
1939^0. In these negotiations the Russians sur-
prised the Germans with the extent of their de-
mands and the tenacity with which they were
insisted upon. At their critical stages the dis-
cussions were conducted by Stalin himself, with
Molotov and Mikoyan also participating. The
minutes of these meetings give exceptionalinsight
into the bargaining method of the Soviet leaders.

In the period immediately following the nego-
tiation of the Nazi-Soviet pacts the respective
spheres of influence were rigidly observed and
Germany rejected suggestions that sympathy be
expressed with the Baltic States or Finland in
their dealings with the Soviet Union. It soon
became apparent that it was Germany's policy
not to intervene in Russian-Finnish discussions or
in the hostilities in which they resulted, but
Bliicher, the German Minister in Helsinki, on
numerous occasions protested against this policy
of his Government and urged aid to Finland.

During this period German policy toward the
neutrals had two main objectives: to counteract

ivne 28, 1954

the workings of the Allied blockade, and to dis-
courage the neutrals from a closer alinement with
Britain and France. These objectives are particu-
larly evident in I'egard to the smaller States of
Europe, Turkey, the Middle East, Latin America,
and the United States. At the same time Ger-
many sought to strengthen her ties with friendly
powers, particularly Italy, Japan, and Spain, and
to overcome their unconcealed misgivings about
German-Soviet collaboration.

Hitler and Ribbentrop repeatedly expressed
faith in the Russians and in the possibility of
maintaining close relations with them. In a letter
to Mussolini on March 8, 1940, Hitler wrote : "We
no longer have any reason for believing that any
Russian agency is trying to exert influence on
German domestic affairs." And to Mussolini, on
March 10, Ribbentrop said that "Stalin had re-
nounced the idea of world revolution. The Third
International, in his opinion, confined itself exclu-
sively to propaganda and informational work."

Ambassador Stohrer also had to indoctrinate
Franco with the new German line that Stalin's
regime had changed and that "national, not inter-
national revolutionai-y motivations had been
decisive for the present Russian attitude." The
Ambassador reported that his "emphatic explana-
tions seemed to give some reassurance to Franco."

The documents here published dealing with the
United States show that close attention was paid
to American attitudes and that the German For-
eign Ministry was, in general, well informed about
currents of opinion here. Several reports from
the military attache, in which Hitler is known to
have taken particular interest, are included.
Charge d'Affaires Hans Thomsen at the Wash-
ington Embassy was insistent in warning against
any resort to sabotage in America as in World
War I, as this would cut the ground out from
under the isolationists whose line was that Ameri-
can interests were not involved in the European
War. Thomsen also advised against use of Ger-
man propaganda in any overt support of the isola-
tionists, as this would only encourage the will to
intervention on the part of American opinion,
which was already overwhelmingly anti-German.

The most important U.S.-German negotiations
of the period were conducted by Under Secretary
of State Sumner Welles in February and March
1940. Documents on Welles' talks in Berlin in-
clude Hitler's instructions on the line to be taken
with Welles and memoranda of Welles' conversa-
tions with Ribbentrop, State Secretary Weiz-
sacker, Goring, and Hitler himself.

The volume will be of interest not only to his-
torians but also to persons with a general interest
in contemporary foreign affairs.

The research on this volume has been directed
by the following editors-in-chief : For the United
States: Paul R. Sweet; for the United Kingdom:
the Hon. Margaret Lambert; for France: Pro-
fessor Maurice Baumont.

1005

Foreign Relations Volume

Press release 305 dBted June 7

The growing threat of a general European War
and the Civil War in Spain form the subject
matter of the greater part of the documentation
printed in Foreign Relations of the United States,
1937, Volume I, General, which the Department
of State released on June 12. As in the volumes
for earlier years, the United States appears in a
role of neutrality and nonintervention, but indi
cation of a possible shift of policy appears with
President Roosevelt's "quarantine speech" at
Chicago on October 5.

Technically there was no war in Europe in
1937, even the fighting in Spain not being recog-
nized as such, but, as Frangois-Poncet, French
Ambassador to Germany, remarked to Ambassa-
dor William C. Bullitl at Paris, "nations no
longer waged war; they waged peace." (p. 123)

From Warsaw, Ambassador John Cudahy
wrote to President Roosevelt on December 26, 1936,
that there was a persistent rumor that the Presi-
dent contemplated some sort of movement in fur-
therance of peace in Europe. He described the
future outlook as dismal but believed it would be
a grave mistake for the President to attempt any
mediation without finst having a definite program
for improving conditions in Germany (pp. 24-26).
In reply. President Roosevelt wrote on January
15, 1937: "Do not believe rumors that I contem-
plate any move of any kind in Europe — certainly
under conditions of the moment." (pp. 26-27)

In a telegram of April 10 from London, Nor-
man Davis, Chairman of the American delegation
to the General Disarmament Conference, re-
ported a conversation with the British Secretary
of State for Foreign Affairs, Anthony Eden.
The latter said that when the time came to make
a move for peace it would probably be best for
the United States to take the lead. Mr. Davis
told him that, despite concern for the inevitable
disaster that would come unless something was
done to reverse suicidal policies, he was sure the
President had no desire or intention of interject-
ing himself in the European political situation.

In two telegrams of April 30, Ambassador Bul-
litt recorded conversations with Sir Eric Phipps,
British Ambassador to France, and Yvon Delbos,
French Foreign Minister, in which the theme was
that a strong stand against Germany by France
and England backed by the benevolent neutrality
of the United States might preserve peace in Eu-
rope. They expressed themselves extremely satis-
fied with American neutrality legislation, (pp.
84^86) This favorable view of the neutrality
law was not shared by Neville Chamberlain, Brit-
ish Chancellor of the Exchequer, who in a memo-
randum of about March 30 to Henry Morgenthau,

Secretary of the Treasury, characterized the exist-
ing law as an indirect but potent encouragement
to aggression and declared its amendment would
be the greatest single contribution which the
United States could make to world peace, (pp.
98-102, 100) In a reply to the British Embassy
on June 1, the Department of State explained cer-
tain changes in neutrality legislation and empha-
sized the need for liberal economic policies to ease
political tension, (pp. 102-106)

In July, after Mr. Chamberlain became Prime
Minister, a meeting between him and President
Roosevelt was proposed but on September 28
the former wrote that the time was not ripe,
(pp. 113,121-122)

On August 31, Ambassador William Phillips at
Rome was informed that the Italian Government
would welcome the initiative of President Roose-
velt to assure European peace and would do every-
thing in its power to lend its support, (p. 121)

President Roosevelt's "quarantine" speech of
October 5 is not reprinted in this volume but there
are a number of diplomatic reports on reactions to
it. (pp. 132-139, 151-152, 154, 210, 413, 425, 450,
464) The speech aroused hope in some quarters
of more active interest by tlie United States in
European affairs but it was followed by no definite
further moves. Under Secretary of State Sum-
ner Welles offered a proposal for concerted inter-
national action to reach common agreement on
the principles of international condiict to preserve
peace but the plan to present it to foreign govern-
ments was abandoned, (pp. 665-670)

Assistant Secretaiy George S. Messersmith on
October 11 presented to the Secretary of State a
significant memorandum on the threat to peace
from aggressive dictatorships if dangerous com-
promises continued to be made. (pp. 140-145)
He declared that "there is no escape from the con-
clusion that the United States are the ultimate
object of attack of the powere grouped in this new
system of force and lawlessness." (p. 141)

In a dispatch of November 23, Ambassador Bul-
litt reported a series of conversations on a trip to
Warsaw and Berlin, (pp. 162-177) Most sig-
nificant, perhaps, was that with Hermann Goering.
(pp. 170-177) This Nazi leader frankly stated
that Germany was determined to annex Austria
and that the Sudeten Germans of Czechoslovakia
as well as all other Germans living contiguous to
Germany must enter the German Reich.

The sections on the Spanish Civil War in this
volume contain numerous reports which indicate
the Department of State was carefully watching
developments but, as in the previous year (see
Foreign Relations, 1936, Volume II), the U.S.
Government maintained a policy of strict nonin-
tervention and centered its activities on the
protection of American lives and property and
on preventing the sending of American war ma-
terial to the belligerents.

1006

Department of State Bulletin

June 28, 1954

Ind

ex

Vol. XXX, No. 783

Africa. International Bank Announcements .....
lAmerican Principles. Building Strength In Today's World

Power Situation (Murphy)

Atomic Energy. Exhibition of Peaceful Uses of Atomic

Energy (Eisenhower)

Congress, The

Current I.egislatlon

Proposed Changes In Organization of Export-Import Banls .

Economic Affairs

FOA Authorizes Funds for Korean Power Plants . . .

ilnternational Bank Announcements

IProposed Changes In Organization of Export-Import B.ink .
U.S. Encouragement of International Travel (Randall) .
Foreign Service. Initiation of Recommendations in Wrls-

ton Report

iFrance. U.S. Assurances to France (Elsenhower) . . .

Guatemala. Guatemalan Situation (Dulles)

International Information. Exhibition of Peaceful Uses of

Atomic Energy (Eisenhower)

Ilnternational Organizations and Meetings

[Anticipated Increase in Refugee Migration for 1954 and

1055 (Warren, Dulles)

r.ritish Leaders' Visit to United States

Jordan. Grant Economic Assistance Agreement With

Jordan

Korea

Fii.\ Authorizes Funds for Korean Power Plants . .

Geneva Declaration on Korea

Military Affairs

Peace and Security in the H-Bomb Age (Wainhouse) .

Security in the Pacific (Dulles)

Mutual Security

Turkey's Armed Forces Get $30 Million in FOA Funds . .

U.S., Philippines To Discuss Mutual Defense Matters . .

Pakistan. International Bank Announcements ....

Philippines. U.S., Philippines To Discuss Mutual Defense
Matters

Presidential Documents

Exliibition of Peaceful Uses of Atomic Energy ....

U.S. Assurances to France

Publications

Current U.N. Documents

Foreign Relations Volume

German War Documents Volume Released

Refugees and Displaced Persons. Anticipated Increase
in Refugee Migration for 1!)54 and 1955 (Warren,
Dulles)

State, Department of

Designations (Leverich, McKisson)

Guatemalan Situation

Thailand. Thailand's Request for Peace Observation Mis-
sion (Dulles, Lodge) (draft resolution)

Treaty Information

Current .\cti0n3

Grant Economic Assistance Agreement With Jordan . .

Turkey. Turkey's Armed Forces Get $30 Million in FOA
Funds

United Kingdom. British Leaders' Visit to United States .

991

982

999

991

993
991
991
997

1002
990
981

982

994
989

1000

993
973

983
971

992
973
991

973

982
990

993

1006
1005

994

1004
981

974

1001

1000

United Nations

Current U.N. Documents 993

A Fresh Look at the United Nations (Key) 976

Geneva Declaration on Korea 973

Peace and Security in the H-Bomb Age (Wainhouse) . . 983
Thailand's Request for Peace Observation Mission (Dulles,

Lodge) (draft resolution) 974

Name Index

Armour, Norman 1004

Churchill, Winston 989

Dulles. Secretary 971, 973, 974, 981, 990, 995, 1002

Eden, Anthony 989

Elsenhower, President 982, 989, 990

Key, David McK 976

Leverich. Henry P 1004

Lodge, Henry Cabot, Jr 974

Luce, Clare Booth 982

McCone, John A 1004

McKisson, Robert M 1004

Murphy, Robert G 988, 1004

Patterson, Morehead 1004

Peurlfoy, John E 981

Randall, Clarence B 997

Romulo, Carlos P 973

Russell, Donald 1004

Saltzman, Charles E 1004

Wainhouse, David W 983

Warren, George L 994

Whitney, John Hay 1004

Wriston, Henry M 1004

092
989

Check List of Department of State
Press Releases: June 14-20

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

Press releases issued prior to June 14 which ap-
pear in this issue of the Bulletin are Nos. 304 and
305 of June 7, 311 of June 9, 314 of June 10, 317 of
June 12, and 318 of June 11.

No.

Date

Subject

Economic assistance, Jordan
Saltzman nomination
Churchill and Eden visit
Dulles : Wriston report
Guatemalan situation
Geneva Declaration on Korea
Mutual defense, Philippines
Educational exchange
Educational exchange
Key : Issues facing U. N.
Hewitt appointment
Waugh : U.S. economic leadership
Soviet veto of Thai proposal
Economic aid, Libya

■* Not printed.

t Held for a later issue of the P>ulletin.

319

6/15

•320

6/15

321

6/15

322

6/15

323

6/15

324

6/15

325

6/15

'*326

6/16

♦327

6/16

t328

6/18

t329

6/18

♦330

6/18

331

6/18

t332

6/19

U S. GOVERNMENT PRINTING OFFICE: 19B4

United States
Government Printing Office

DIVISION OF PUBLIC DOCUMENTS

Washington 25, D. C.

PENALTY FOR PRIVATE USE TO AVOID

PAYMENT OF POSTAGE, >300

IGPO)

OFFICIAL BUSINESS

the

Foreign Relations of the United States . . .

the basic source of information on U.S. diplomatic history

1937, Volume I, General

Department

' The growing threat of a general European War and the

Civil War in Spain form the subject matter of the greater part

f of the documentation printed in this volume. As in the volumes

11 T for earlier years, the United States appears in a role of neu-

^ ■ trality and nonintervention but indication of a possible shift

of policy appears with President Roosevelt's "quarantine
^1 . speech" at Chicago on October 5.

xT'lTp Technically there was no war in Europe in 1937, even the

il I U l w fighting in Spain not being recognized as such, but, as Francois-

Poncet, French Ambassador to Germany, remarked to Ambas-
sador William C. Bullitt at Paris, "nations no longer waged
war ; they waged peace."

Other documentation in this volume deals with a number of
general and multilateral problems.

Copies of Foreign Relations of the United States, 1937,
Volume I, General, may be purchased from the Superintendent
of Documents, Government Printing OiRce, Washington 25,
D. C, for $4,25 a copy.

Order Fovm Please send me copies of Foreign Relations of the United States,

1937, Volume I, General.
To: Supt. of Documents
Govt. Printing Office
Washingrton 25, D;C. Name:

Street Address:

Enclosed And: City, Zone, and State: ^

{cash, check, or
money order).

BOSTON PUBLIC LIBRARY

3 9999 06352 755 8

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