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Vol. XXX, No. 771 
April 5, 1954 

GRAM • 12th Semiannual Report 499 


MOVEMENT IN GERMANY • Texts of Correspond- 
ence 508 


Under Secretary Murphy 513 




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 

For sale b; the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26, D.C. 


62 Issues, domestic $7.60, foreign $10.26 

Single copy, 20 cents 

The printing of this publication has 
been approved by the Director of the 
Bureau of the Budget (January 22, 1962). 
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 

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 

The International Educational Exchange Program 


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} 


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

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. 


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 

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 

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 

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. 


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 


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. 


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 

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- 


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 

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- 

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 

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 

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 

— 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 

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. 


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 


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 

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 

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 


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 

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 

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. 


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. 


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 

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 

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 

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 


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- 

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 


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 

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 

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 

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 


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 

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 

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- 


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. 


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 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 

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

April 5, 1954 


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- 

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 

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. 


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 

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 

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 


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 

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 


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

Mr. Dengin to General Timberman, March 6 


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 

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 

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- 

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 


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. 


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 


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 
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 

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 


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 

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 

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 


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 

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 

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 

* 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 


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- 

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 

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


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 

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 

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 

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 

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

April 5, 1954 


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 


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 

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 


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. 


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. 


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 

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 


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 

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 

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 


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

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. 


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- 

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. 


Department of State Bulletin 


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 

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 

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- 

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 


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: 


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 

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- 

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 

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 

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. 


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- 

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 

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- 


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 


Current Actions 

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!,: 


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. 



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. 


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. 


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. 


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. 


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 ^ 


Agreement Revising and Renewing the International 
Wheat Agreement 

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











Costa Rica 




United States of America . 







Dominican Republic . . . 


New Zealand 


El Salvador 


Federal Republic of Ger- 





Union of South Africa . . 

Dnte of 

deposit of 


of acceptance 

May 18 
.Tune 30 



July 11 

July 13 

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 


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 






State of Vatican City 


Saudi Arabia .... 







Date of de- 
posit of in- 
strument of 

Sept. 11 

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

Date of de- 
posit of in- 
strument of 


Sept- 17' 
Sept. 30 

Dec. 31 

Date of en- 
try into force 

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

Sept. 11 
Sept. 17 
Sept. 30 
Oct. 14 


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. 

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. 


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 


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 


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 



















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- 


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 


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 

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 

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- 


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 


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 : 



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 

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- 



of Agricul- 

Department of Commerce 

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

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

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- 

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 


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- 

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 

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 



of Agricul- 

Department of Commerce 

Department of Labor 

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

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

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

April 5, J 954 


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 


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). 


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- 

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 

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 

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. 


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- 

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 

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 

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. 


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- 

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 


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 

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. 


Deparfment of Sfafe BuUetin 

April 5, 1954 


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 


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. 


Radio discussions with Mexico 
Trade relations with Philippines 
Wheat to Afghanistan 
Dulles: John P. Davies 
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- 
Soviet lend-lease vessels 
Patterson: U.N. Day Committee 

*Not printed. 

t Held for a later issue of the Bulletin. 

































April 5, 1954 


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



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 

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 Secretary of State John Foster Dulles, 
delivered over radio and television on February 24, 1954. 

Publication 5399 

70 cents 

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'o: Supt. of Documents 
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Enclosed find: 

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Our Policy for GermariY 

Please send me copies of 

Foreign Ministers Meeting — Berlin Discussions 
January 25-FebruarY 78, 7954 


Street Address 

City, Zone, and State. 



j/t0 ^€fixM^^(}mjen^ /CI/ t/tc^^ 

April 12, 1954 

VlBNT Ofr 

THE^THREAT OF A RED ASIA • Address by Secretary 

Dulles 5*' 


Deputy Assistant Secretary Elbrick 555 



POLICY • by EdKin W. Martin 543 


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

For index see inside bade cover 


Voston Public Library 
Superintendent of Documents 

APR 28 1954 

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


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. 


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 Biilleiin as the source will be 

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 
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tions of the Department. Informa- 
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and international agreements to 
ichich 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 
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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 

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 

"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- 

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 


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 


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 

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

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 

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 

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 

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

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 


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 

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 

DwiGHT D. Eisenhower. 

' Col. Christian de Castriea 


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 


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 

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 


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 


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 

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 

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 

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- 

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 

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 

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 


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 


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. 


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 


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. 


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. 


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 

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 



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 

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 

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 

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. 

'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 


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. 


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. 


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 

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. 


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 


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- 


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. 


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 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. 


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 


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. 


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 

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- 

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 

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 


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- 

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. 


Department of State Bulletin 

Fifth Anniversary of NATO 


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. 


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 


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 

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 

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 

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. 


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 

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 

T will report the results of our conferences to 
President Eisenhower and to the Secretary of 

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 

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. 


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 

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 


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. 

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- 

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 : 

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 

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 


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 

• 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. 


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; 

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 


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 : 

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, 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. 

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 

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 


^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 

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- 

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. 


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 

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 

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. 


Current Actions 


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. 


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. 


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 



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. 


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. 


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. 

Treaty of Peace With Japan 

Signed at San Francisco September 8, 1951 

Signatory state 











Costa Rica 


Dominican Republic . . 



El Salvador 
















New Zealand 








Saudi Arabia 



Union of South Africa . . 
United Kingdom of Great 

Britain and Northern 

United States of America . 

Date of deposit of 

instrument of 


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 


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, 


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 


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, 


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 


Date ofentrf 

into force < 




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. 


(To the Treaty of Peace with Japan) 
Opened for signature at San Francisco on September 8, 1951 




Belgium . 


Canada . 

Ceylon . 


Egypt. . 

Ethiopia . 

France . 

Greece . 

Haiti . . 


Iran . . 

Iraq . . 

Laos . . 

Lebanon . 

Liberia . 



Pakistan . . 

Saudi Arabia 

Syria . . . 

Turkey . . 

United Kingdom of Great 
Britain and Northern 




New Zealand 

Sept. 8 

Sept. 8 

Sept. 8 

Sept. 8 

Oct. 3 

Dale of entry into 

Apr. 28, 
Aug. 22, 
June 2, 
Apr. 28, 
Apr. 28, 
June 6, 
Dec. 30, 
June 12, 
Apr. 28, 
May 19, 
May 1, 


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 

Opened for signature at Washington on June 12, 1962 










Dominican Republic 

Date of signature 


3, 1952 

12, 1952 
1, 1952 

13, 1952 
13, 1952 
16, 1952 

8, 1952 
15, 1952 
12, 1952 

Date of entry into 

Oct. 3, 1952 
Aug. 12, 1952 
Aug. 22, 1952 
Aug. 13, 1952 
June 13, 1952 
June 16, 1952 

Aug. 15, 1952 
June 12, 1952 


Department of State Bulletin 

Agreement for the Settlement of Disputes Arising 
Under Article 15 (a) of the Treaty of Peace With 
Japan — Continued 










New Zealand 




Union of South Africa . . 

United Kingdom of Great 
Britain and Northern 

United States of America . 



Date of signature 














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 

July 24, 1952 
May 19, 1953 
May 1, 1953 










7, 1954 
29, 1952 
11, 1952 
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 


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.*' 


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 

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. 


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 

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 ( 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 

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 


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. 


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 

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 

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. 


Department of State Bulletin 


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. 



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. 

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. 

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. 

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 

April 72, 1954 


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. 

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 
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. 

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. 


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-Arab Relations (White) 554 

Israeli Complaint Against Egypt Regarding Shipping Re- 
strictions (Lodge) 569 


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 


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 


Department Views on Soviet Security Proposals . , . 562 

Return of 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- 
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. 





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1936, Volume I, General, The British Commonwealth 

Of outstanding historical interest in this volume are 
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armament and Hitler's dramatic move of sending his 
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Aside from problems of armament and threats to 
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include negotiations for the suppression of liquor 
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especially with the efforts of Secretary of State Hull to 
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Vol. XXX, No. 773 
April 19, 1954 



ECONOMIC POLICY Message of the President to the 
Congress ••••. 602 


PROGRAM FOR 1955 • Statement by Secretary Dulles . 579 


by Winthrop G. Brown 608 


Secretary Smith ...................... 589 


by Ambassador Winthrop W. Aldrich 591 

AMERICA AND THE NEW INDIA • by John D.Jernegan . 593 

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 


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. 


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Single copy, 20 cents 

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 

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 

<<Not One of Us Alone" 


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 

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 

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. 


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 


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- 


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- 

It is obvious that the present status cannot con- 
tinue much longer. 


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. 


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 

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 

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 

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 

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. 


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. 


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., 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 

' For text, see Bulletin of Mar. 22, 1954, p. 420. 
April ?9, 1954 

* Ibid., Apr. .'i, l!)r)4, p. 520. 



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 

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 

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. 

'Special Study Mission to Southeast Asia and the 
Paoifio (Committee print), S3d Cong., 2d sess., Jan. 29 

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- 

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 

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 


Berlin Rebuilds 


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 

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 

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- 


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 

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 

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 

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. 

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. 


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- 

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 

" 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 

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 

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. 


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 

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 

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 


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 

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 

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 

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. 

' 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 

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 

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 


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 


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 

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 


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 

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 

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 


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 

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 

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 

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- 


tion of the Indian subcontinent is a part of Soviet 

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 


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 

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 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 

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- 

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 

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 


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 

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 


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 

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 


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 

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 

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 


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 

(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 


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 


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 

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 

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- 


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 

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 

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- 


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 

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 

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 


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 

Dollar grants are no lasting solution to this 

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 

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- 

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. 


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 

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 


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 

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 

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 


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. 


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 


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- 


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 

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 


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. 


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 

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; 

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- 

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. 

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 


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- 


Department of State Bulletin 

ments barriers in its comparatively lengthy and 
stimulating discussion of the development of this 

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 

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 


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 


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 

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 


needed to meet the Soviet Union's basic food 

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. 


Department of State Bulletin 


Current Actions 



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. 

United States' 
Japan ' 
New Zealand 

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. 

Japan ' 

United States acting as the Unified Command 


Canada ' 

New Zealand ' 


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. 


United States acting as the Unified Command 



New Zealand 


Union of South Africa 

United Kingdom 
Entered into Force: February 19, 1954. 



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. 


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. 


Mutual Defense Assistance Agreement. Signed at Tokyo 
March 8, 1954. Enters into force upon ratification by 

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 

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. 


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. 


Agreement on dates and procedures for the return of 20 
subchasers type Ul'C and I'TC. 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. 



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 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. 

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, 

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, 

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, 


Departmenf of State Bulletin 

April 19, 1954 


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 


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 


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. 

Dulles : Mutual security program 
U.S. Mexitan radio talks 
Educational exchange 
Kalijarvi : Copyright convention 
Dulles : Meeting of Republican 

Enemy property claims 
Coal and Steel Community loan 
Byroade : Middle East in new per- 
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. 

































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 
Superintendent of Documents, Government Printing 
Office, Washington 25, D. C, for $4.25 each. 

Order Form 

To: Supt. of Documents 
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Washington 25, B.C. 

Please send me a copy of 

Foreign Relations of the United States, 1936, 
Volume I, General, The British Commonwealth 


Street Address 

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moneu order). 



April 26, 1954 

^ENT o^ 

■*tes o^ 



Assistant Secretary Byroade 628 


Deputy Assistant Secretary Wainhouse 642 


by Mrs, Lorena B. Hahn 646 


CHINA • by Alfred le Sesne Jenkins 624 

FERENCE • Article by miliam G. Bou-dler 634 

For index see inside back cover 

Boston Public Library 
Superintendent of Documents 

MAY 2 4 1954 


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. 


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 

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 

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. 


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 

(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 


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. 


Paet I. — Common Aims 


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. 


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 

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. 


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. 


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 


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 

(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 

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- 

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. 


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 

Paris, April IS, 1951,. 


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 


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 

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 


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 

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- 

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 


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 


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 

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- 


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 

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 

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 

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 


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 

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 


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 

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 

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. 


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- 

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 


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 


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 

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. 


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 


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 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 


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 

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- 

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- 


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- 

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. 


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 

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. 


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 


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 

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 


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 


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 

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 



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 ; 

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. 


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 


Deparimeni of Sfafe Bulletin 


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. 



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 

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 

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 

April 26, 7 954 


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- 

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 

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 

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 

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 

' For an earlier statement by the Department regarding 
the Georgescu case, see Bulletin of June 8, 1953, p. 815. 


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 

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 


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 

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 

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- 


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 

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 

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 


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- 

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. 


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 

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 

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. 

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. 

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. 


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 ' 


tJ.S./U.N. press release dated March 23 

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- 

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. 

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 

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 


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. 


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 

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 

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. 


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 

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. 


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. 


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. 


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 

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 


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 


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- 

Second, more teachers, and more women in 

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. 


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 


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- 

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 


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 

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 


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- 

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 

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 


Report of U. N. Command Operations in Korea 


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 

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 


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 

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. 


Current Actions 


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 
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. 







United Kingdom 

United States " 

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 


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. 


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. 


Department of Sfafe Bulletin 

April 26, 1954 


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 


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 

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 


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 


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- 


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 


♦Not printet 

tHeld for a 

later issue of the Bulletin. 


Foreign Relations of the United States . . . 

the basic source of information on U.S. diplomatic history 

1936, Volume lY, 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 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 

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Vol. XXX, No. 775 
May 3, 1954 


ATOMIC ENERGY • by Lewis L. Strauss 659 


Secretary Holland 675 


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 


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. 


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 

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 

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- 

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 


Union — a condition with consequences of disas- 
trous weiglit for the future of the presently free 

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 

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 

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. 

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 

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 

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 

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. 


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- 

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 


capital in the development of nuclear power until 
the Commission had demonstrated its economic 

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 

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 

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 

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 


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 

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. 


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 


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 

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 

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 


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 

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 


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 

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 

The brutal Soviet conquest of Czechoslovakia 
did not disintegrate the will of the West. It led 
to the formation of the North Atlantic Treaty 

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 

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 

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. 


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 

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- 

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 

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 

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 

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 


U. Alexis Johnson, Ambassador to Czechoslovakia 

Special Advisers 

Theodore Achilles, Deputy Chief of Mission, Paris 

May 3, 1954 


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 



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 

Robert H. McBride, Officer in Charge, French-Iberian 

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 

Press Officer 

Henry Suydam, Chief, News Division 

Deputy Coordinator and Secretary of Delegation 

Basil Capella 

Meeting of NAC Ministers 


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 

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 

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." 


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 

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 


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- 

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 


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. 


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. 


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 

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 

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 


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 


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 

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, 

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. 


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 

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 

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. 


Department of State BuUetia 

Observance of Pan American Day 

Addresses hy Henry F. Holland 

Assistant Secretary for Inter-American Affairs 


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 


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 


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. 



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 

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- 

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 

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 


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. 


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 


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 

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. 

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. 

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. 

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. 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. 

Conditions in the Trust Territory of Tanganyika. Report 
of the Drafting Committee. T/L.451, March 19, 1954. 
15 pp. mimeo. 

May 3, 7954 


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 


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) 


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 


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 


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 


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 


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- 


May 15- 

May 17- 

May 17- 

May 17- 

May 19- 

Mav 24- 

May 1- 

May 27- 

May 29- 


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- 


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 ' 


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 


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 

'Made in the Economic and Social Council on Apr. 9 
and 13. 


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 

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 

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 


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 


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. 


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 


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. 


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. 


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 

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 

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 


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 

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- 

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 

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 

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 

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. 


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 commissions as (iescril)ed in the Korean 
Armistice Agreement, see Bulletin of Aug. \i, VJi'i.i, pp. 

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 


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 

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 

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 


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 


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 : 


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. 


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, 

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 


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- 


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 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 

Alternate United States Representative 

Howard B. Calderwood, Office of United Nations Economic 
and Social Affairs, Department of State. 


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 

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. 


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. 


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) 


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 


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. 


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. 


Agreement Between the Parties 

to the North Atlantic Treaty 

Regarding the Status of Their Forces^ 


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, 

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 

' 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. 





United States of America 




Date of deposit 

of i7ittfrjimci>l of 


Sept. 29, ] 952 
Feb. 24, 1953 

27. 1953 ^ 
24, 1953' 

28, 1953 
Nov. 18, 1953* 
Mar. 19, 1954< 



Date of 
entry into force 


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. 


Protocol on the Status of 

International Military Headquarters Set Up 

Pursuant to the North Atlantic Treaty ' 


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. 




United States of America 

Dale of deposit 

of instrument of 


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 



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. 



Charles D. Hilles, Jr., as special legal adviser to the 
U.S. High Commissioner for Germany, effective April 19 
(press release 204). 


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. 


Department of State Bulletin 

May 3, 1954 



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 


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 


212 4/23 Remarks by Smith, Monnet 


Foreign Relations of the United States . . . 

the basic source of information on U.S. diplomatic history 

1936, Volume 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 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. 


Ettcloaed And: 

Street Address: 


(cttsh, check, or City, Zone, and State: 

money order). 

^3^3. //f 





Vol. XXX, No. 776 
May 10, 1954 


by the President 699 

TOWARD A FREE KOREA • Statement by Secretary 

Dulles 704 


DISPUTE • by Assistant Secretary Byroade 708 

MENT • by Henry Cabot Lodge, Jr 721 

Preston Hotchkis 725 


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. 


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 

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 

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