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Foreign Relations of the United States . . , 

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

1937, Volume lY, The Far East 



Documents published in this volume deal chiefly with prob- 
lems arising from the outbreak of undeclared war between 
China and Japan in July 1937, especially with efforts by the 
United States and other powers to restore peace. This is the 
second of two volumes dealing with the Far East crisis in 1937, 
Foreign Relations of the United States, 1937, Volume III, The 
Far East, having been released in June. 

In 1937 China faced Japan, with the Soviet Union watching 
from the sidelines and discussing developments with other 
powers. Nine hundred pages of contemporary papers deal 
with not only efforts to end the undeclared war but also other 
phases of the war itself and repercussions affecting the United 
States. 

The principal chapter of this volume relates to a conference 
called at Brussels under the terms of the Nine Power Treaty of 
February 6, 1922, regarding China to explore the possibility of 
peaceful solution of the conflict between Japan and China. 
Chapters are also included on American relations with China, 
Japan, and Siam (Thailand). 

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ol. XXXI, No. 797 
October 4, 1954 



VlBNT oj^ 




PARTNERSHIP FOR PEACE • Address by Secretary Dulles . 471 



CORRESPONDENCE WITH SOVIET UNION ON 

ATOMIC POOL PROPOSAL 478 



ADMINISTRATION OF AGRICULTURAL TRADE 

DEVELOPMENT AND ASSISTANCE ACT 498 



RETURN OF HISTORIC OBJECTS TO COUNTRIES 

OF ORIGIN • Article by Ardelia R. Hall 493 



For index see inside back cover 



^."T 0» 



j^or:on ruo.x ,^. .rary 
"uperintoni.'nt of Documents 

OCT 2 7 1954 




*.*.,.,-^*. bulletin 



Vol. XXXI, No. 797 • Publication 5602 
October 4, 1954 



For sale by the Superintendent of Documents 

U.S. OoTeroment Printing Office 

Washington 26, D.C. 

Price: 

62 issues, domestic $7.60, foreign $10.25 
Single copy, 20 cents 

The printing of this publication has been 
approved by the Director of the Bureau of 
the Budget (January 22, 1952). 

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



The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes se- 
lected press releases on foreign policy, 
issued by the White House and the 
Department, and statements and ad- 
dresses made by the President and by 
the Secretary of State and other offi- 
cers of the Department, as ivell as 
special articles on i-arious phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreentents to 
which the United States is or may 
become a party and treaties of gen- 
eral international interest. 

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



Partnership for Peace 



Address by Secretary Dulles ' 



I come to this openinfr of the Ninth General 
Assembly witli a deep sense of the significance of 
this occasion. This annnal gathering of the rep- 
resentatives of 60 nations represents mankind's 
most hopeful effort to achieve peace with justice. 
Here is made manifest tlie close interdependence 
of today's world and, also, the vast opportunity 
for constructive results which lie in good partner- 
ship efforts. 

The people of the United States believe whole- 
heartedly in the purposes and the principles set 
out in the charter of the United Xations. That 
document marks a milestone in the understanding 
of the nature of peace. It recognizes that peace 
is not a passive concept but a call to action. It is 
not enough to dislike war and to denounce it. War 
has been hated throughout the ages. Yet war 
has been recurrent throughout the ages. One rea- 
son is that men have never put into the winning 
of peace efforts comparable to those which they 
put into the winning of a war. 

Mankind will never have lasting peace so long 
as men reserve their full resources for tasks of 
war. To preserve peace and to do so without the 
sacrifice of essential freedoms require constant 
effort, sustained courage, and at times a willing- 
ness to accept grave risks. That is the true spirit 
of ]ieace. 

During the past year many nations have ac- 
tively worked together on behalf of a just and 
durable peace. There have been moments when, 
it seemed, the scales between general war and 
peace were precariously balanced. That hazard- 
ous equation still exists. But at least we see the 



' Made before the U. N. General Assembly on Sept. 23 
(press release 525). 



hazard and strive to shift the balance in favor of 
peace. 

The efforts of the past year are not to be ap- 
praised merely by whether they in fact produced 
concrete settlements. The making of intelligent, 
resolute, and united efforts for just settlements has 
itself contributed to peace. It shows a dynamic 
spirit and a vigilance which are a warning to any 
potential aggressor. In the past, peace has often 
been lost by default. That, let us resolve, shall 
not happen again. 

I cannot, of course, now touch on all of the man- 
ifold activities which have recently occurred with- 
in and without this organization. I shall focus 
mainly on political efforts with which my own 
country was associated as an active partner. Let 
me first speak of the Organization of American 
States. The inter- American system rests on a long 
tradition of cooperation for freedom and peace in 
this hemisphere. Faithfulness to that tradition, 
and pride in it, have served to spare this hemi- 
sphere from such wars as have tragically ravaged 
Europe and Asia during the last century and more. 
Last March the Caracas Conference of the Ameri- 
can States decided and declared that if interna- 
tional communism gained control of the political 
institutions of any American State, that would be 
a danger to the peace and security of them all 
and call for collective action to remove the threat. 

However aggressive communism may be judged 
elsewhere, we of this hemisphere, with no excep- 
tion, know that its intrusion here would open grave 
conflicts, the like of which we have not known 
before. 

In Guatemala there developed an identifiable 
threat to the peace and security of this hemisphere. 



Oc/ofaer 4, 1954 



471 



The American States exchanged views about this 
dangei- and were about to meet to deal with it col- 
lectively when the Guatemalan people themselves 
eliminated the threat. 

In this connection, there was occasion for the 
United Nations to apply the principles of our 
charter ■which, while affirming the universal juris- 
diction of this organization, call for the use of 
regional arrangements before resort to the Security 
Council (articles 33 and 52). These provisions 
had been hammered out in the course of debate 
at San Francisco, when our charter was adopted. 
The American States at that time urged that their 
tested relationship should be coordinated with, and 
not totally replaced by, the United Nations, which 
they felt miglit prove undependable because of 
veto power in the Security Council. So it was de- 
cided to make regional association a major fea- 
ture of the United Nations peace system. 

This year the Organization of American States 
showed anew that it is ready, able, and willing 
to maintain regional peace. Thereby, the provi- 
sions of the United Nations Charter have been 
vindicated and the foundation for peace in the 
American Hemisphere has been solidified. 

Germany and Austria 

Last year I said here that "the division of Ger- 
many camiot be perpetuated without gi'ave risks." ^ 
In an effort to eliminate that risk, I went to 
Berlin last January to confer with the Foreign 
Ministers of tlie other tliree occupying powei"S. 
We there joined with Britain and France in pre- 
senting a proposal for the unification of Germany 
through free elections, to be supervised bj' the 
United Nations or some comparable impartial 
body. The Soviet Union countered with propo- 
sals which added up to an extension of the Soviet 
orbit to the Ehine. Accordingly, the dangerous 
division of Germany still persists. But, I may 
add, something else persists — that is our resolve, 
in the spirit of peace, to end the cruel injustice 
being done to Germany. 

Last year I also spoke of an Austrian treaty as 
l)eing long overdue. I pointed out that as between 
the occupying powers there was "no substantial 
item of disagi'eement." At the Berlin Conference 
tlie three Western occupying powers eliminated 



• For text of Secretary Dulles' arldress before the 
Eighth General Assemby, see Bulletin of Sept. 28, 1053, 
p. 4():l. 



the last vestige of disagreement by accepting the 
Soviet version of every disagreed article. It 
seemed, for a fleeting moment, that the Austrian 
treaty might be signed. But then the Soviet 
Union improvised a new condition. It said that 
it would not free Austria from Soviet occupation 
until a German peace treaty was concluded. 

There cannot be a German peace treaty until 
Germany is united. So Austria continues to be 
an indefinitely occupied nation. Nevertheless, 
here again, we do not accept as final the denial of 
justice to unhappy Austria — the first victim of 
Hitlerite aggression and the object of the 1943 
Moscow pledge of freedom and independence. 
The three Western Powers, constant in the spirit 
of peace, have again within recent days urged that 
the Soviet Union sign the Austrian state treaty as 
a deed which, far more than platitudinous words, 
will show whether other matters can fruitfully be 
discussed. 

European Unity 

The problem of peace in Europe has become 
more complicated because of the recent setback to 
the consummation of the European Defense Com- 
munity. That concept came from recognition 
that the best guarantee of permanent peace in Eu- 
rope was an organic unity which would include 
France and Germany. Also, if this unity merged 
the military forces of these two and other Euro- 
pean countries, that would assure their nonaggres- 
sive character. Such forces would clearly be un- 
available except as the whole community recog- 
nized the need for defensive action. 

The votes of Communist deputies more than ac- 
counted for the parliamentary majority which in 
one country shelved the Edc. Thus, they acted 
to perpetuate European divisions which have re- 
currently bred wars. However, the free nations 
concerned do not accept with resignation the per- 
petuation of what, historically, has been the 
world's worst fire hazard. They are alert to the 
peril and are working actively to surmount it. 

Korea 

Last year when I spoke here about Korea, I was 
able to report an armistice. That, I said, was not 
because the Communist aggressors loved peace, but 
because they had come up against an effective mili- 
tary barrier. I went on to say, "The Korean po- 
litical conference, if the Communists come to it. 



472 



Oeparfmen/ o^ State Bulletin 



will afford a bettor test." It took 7 months of 
arduous negotiation to bring about the political 
conference. When it occurred at Geneva, tlic 
United Nations side proposed the unifu-ation of 
Korea on the basis of free all-Koi'oan cU'ctioiis to be 
supervised by the United Nations. This proposal 
was rejected by the Communist side. They in- 
sisted that the United Nations must itself be 
treated as an instrument of aggression and be 
debarred from any further activity in Korea. 

This counterproposal, insulting to the United 
Nations, was unanimously rejected by those who 
proudly hailed the Korean action of the United 
Nations as the first example in all history of an 
international organization which had in fact acted 
effectively against armed aggi'ession. 

The United States does not believe that the uni- 
fication of Korea must await another war. We 
have exerted all tlie influence we possess in favor 
of a peaceful solution of the Korean problem, and 
we have not lost faith that this solution is possible. 

Southeast Asia 

At the Geneva Conference the belligerents in 
Indochina also dealt with the problem of peace. 
An 8-year conflict of mounting intensity was 
brought to a close. We can all rejoice that there 
has been an end to the killing. On the other hand, 
we cannot shut our eyes to the fact that sevei'al 
hundred thousand in Noi'th Viet-Nam have at 
their desire been transferred to non-Communist 
areas, and that there still remain millions un- 
willingly subject to an alien despotism. In this 
case, an end to fighting has been bought at a heavy 
price, and the final result is still obscure. 

One result, however, has been the driving home 
to the nations interested in Southeast Asia of the 
importance of a collective organization for de- 
fense against further aggression. At Manila this 
month eight nations met and negotiated and signed 
a treaty calling for collective defense against 
aggression. 

The Manila Pact constitutes significant action 
taken under the charter of the United Nations, 
which recognizes the inherent right of individual 
and collective self-defense. Those who cry out 
when others exercise their inherent right of self- 
defense only expose their own aggressive purposes. 

The Manila Conference did much more than 
extend the area of collective security. It adopted 
the Pacific Charter. Thereby, the eight nations — 



Asian and non-Asian — which met at iMaiiila pro- 
cliiimed in ringing terms the principles of self- 
(litermination, self-government, and independence. 
Tiiis chai'ter, and (he s]>irit f)f fellowship whicli 
gave it birth, should serve once and foi' all to end 
the myth that there is inherent incompatibility 
between East and West. The peoples of Asia who 
are already free, or who seek freedom, need not 
remain weak, divided, and unsupported in the face 
of the new imperialism which has already reduced 
to colonial servitude 800,000,000 people, of what 
were once 15 truly independent nations. 

Atomic Energy 

The past year has been marked by intensive 
efforts in the field of atomic energy. The United 
States has sought to share its commanding posi- 
tion in this field in ways that would permit many 
to join in a great new adventure in human welfare. 
We hoped to turn atomic energy from being an 
instrument of death into a source of the enrich- 
ment of life. 

I vividly recall December 8, 1953, when we here 
heard President Eisenhower propose that the na- 
tions possessing atomic material would cooperate 
under the auspices of the United Nations to create 
a world atomic bank into wliich tliey would each 
contribute fissionable material which would then 
be used for the purpose of productivity rather 
than destruction.^ I shared the drama of that 
moment and sensed the universal applause which 
then greeted that proposal — applause which 
echoed around the world. 

Because it seems that oftentimes negotiations 
jiublicly conducted with the Soviet Union tend to 
become propaganda contests, President Eisen- 
hower proposed that these new negotiations should 
be privately conducted. The United States, after 
consultation with others, then submitted a con- 
crete, detailed proposal to cany out President 
Eisenhower's great conception. I myself met sev- 
eral times with the Soviet Foreign Minister at 
Berlin and at Geneva to discuss this matter. We 
are quite willing that all documents exchanged be- 
tween the United States and the Soviet Union dur- 
ing these negotiations be published. 

We hoped and believed that, if the Soviet Union 
would join with the United States, the United 
Kingdom, and other nations possessing fissionable 



■Ihift., Dec. 21, 1953, p. 847. 



Ocfober 4, 1954 



473 



U. S. Request to Secretary-General 
for Agenda Item on Atomic Energy 

U.N. doe. A/2734 dated September 23 

New Yobk, 23 September 1954 
I have the honour to request, under rule 15 of the 
rules of procedure, that an item entitled "Inter- 
national co-operation in developing the peaceful 
uses of atomic energ.v : report of the United States 
of America" be added to the agenda of the General 
Assembly as an important and urgent question. 

In connexion with the above-mentioned request 
I attach an explanatory memorandum, in accordance 
with rule 20 of tlie rules of procedure. 

H. C. Lodge, Jr. 
Chair>nan. 

Explanatory Memorandujc 

The President of the United States, in his state- 
ment to the eighth regular session of the General 
As.sembly on 8 December 195.3, made far-reaching 
proposals to set up an international atomic energy 
agency under the aegis of the United Nations to 
develop plans whereby the peaceful u.se of atomic 
energy would be expedited. The President furtlier 
indicated the willingness of the United States to 
take up with the Powers "principally involved" the 
development of plans for such an agency. 

During the past year the United States has en- 
gaged in discussions on this subject with the Powers 
principally involved with atomic energy matters, 
and particularly with the Union of Soviet Socialist 
Republics. Wliile the attempt to secure the co- 
operation of the USSR in this endeavour has not 
been successful, the other Governments with whom 
the United States has discussed this proposal have 
indicated general agreement on the objectives of the 
proposal and on the general nature of the inter- 
national atomic energy agency. 

The United States intends to proceed immediately, 
in conjunction with the other nations princii)ally 
involved, to create an international agency to de- 
velop the constructive uses of atomic energy. This 
approach excludes no nation from participation 
in this great venture. As more precise plans take 
shape, all nations interestwl in participating and 
willing to take on the responsibilities of member- 
ship will be welcome to join in the planning and 
execution of this programme. 

The United States believes that an international 
scientific conference of representatives of Govern- 
ments and scientists would be useful in identifying 
the technical areas in which progress can best be 
made in applying atomic energy to peaceful ends, 
and accordingly suggests that the United Nations 
should convene such a conference. The United 
States intends at the appropriate time to describe in 
greater detail the nature of such a conference and 
its objectives. 

There have been other significant developments 
during the past year in connexion with peaceful 
uses of nuclear energy concerning wliich the United 
States will report. 

The United States believes that an explanation of 
these matters is of such import to all njitions that 
it warrants the additidu of this item lo the General 
Assembly's agenda as an important and urgent 
matter. 



material and atomic know-how, this act of co- 
operation might set a pattern which would extend 
itself elsewhere. 

The plan we submitted could not have hurt any- 
one. It was motivated by the hope of lifting the 
darkest cloud that hangs over mankind. Its ini- 
tial dimensions were not sufficient to impair the 
military capability of the Soviet Union, and there 
was no apparent reason for its rejection. Above 
all, it was a practicable, easily workable plan, not 
dependent on elaborate surveillance. 

Nevertheless, the proposal was, in effect, re- 
jected by the Soviet Union last April. Its re- 
jection was not because of any alleged defects in 
the plan itself. Any such would certainly have 
been negotiable. Tlie Soviet position was, in 
effect, to say — we will not cooperate to develop 
peacetime uses of atomic energy unless it is first 
of all agi-eed to renounce all those uses of atomic 
energy which provide the free nations with their 
strongest defense against aggression. 

To date, the Soviet Government has shown no 
willingness to participate in the implementation 
of President Eisenhower's plan except on this 
completely unacceptable condition. Yesterday, 
wlien it was known that I would speak on this 
topic today, the Soviet Union broke a 5 months' 
silence by delivering a note in Moscow affirming 
its readiness to talk further. But the note still 
gave no indication that the Soviet Union had 
receded from its negative position. 

The United States remains ready to negotiate 
with the Soviet Union. But we shall no longer 
suspend our efforts to establish an international 
atomic agency. 

The United States is determined that President 
Eisenhower's proposal shall not languish until 
it dies. It will be nurtured and developed. We 
shall press on in close partnership with those na- 
tions which, inspired by the ideals of the United 
Nations Charter, can make this great new force a 
tool of the humanitarian and of the statesman, 
and not merely a fearsome addition to the arsenal 
of war. 

The United States is proposing an agenda item 
which will enable us to report on our efforts to ex- 
plore and develop the vast possibilities for the 
peaceful uses of atomic energy. These eflforts 
have been and will be directed primai-ily toward 
the following ends : 

(1) The creation of an international agency, 



474 



Deparfmenf of State Bulletin 



Statement by Ambassador Lodge on Atomic Pool Proposal ' 



lu his si)oech yesterday, Secrotiiry Dulles an- 
nounced the decision of the (Jovernmeiit of the 
United States to press forward witli President 
Kisciiliower's vital proposal tor the eslablishinent of 
an iuternatiouai agency to develop the peaceful uses 
of atomic energy. Secretary Dulles referred to the 
sincere effort made by the United States to enlist 
the cooperation of the Soviet Union in tliis unprece- 
tlented offer to share tlie fruits of modern tech- 
nology with all nations and peoples. The Soviet 
Union lias refused to join in tliis venture so far. 
We can all hope that this refusal is not final. 

But in any event, the attitude of the Soviet Union 
cannot lie permitted to deprive the people of the 
world of the benefits of the greatest scientitie dis- 
covery of modern times. The other nations which 
are in a position to contribute to this sreat venture 
have indicated their readiness to do so. The United 
States is determined to join witli them without 
further delay in order that nations and jieoples 
everywhere sliall share as soon as possible in atomic 
progress for peace. 

Substantial progress has already been made In 
the development of the peaceful uses of nuclear 
energy and its by-products. A concerted interna- 
tional ettort of the kind the United States is pre- 
pared to support could hasten the process of bringing 
this boon to human life out of the laboratory and 
putting it to work in fields, factories, and hospitals 
anil ail otlier jilaces where people live and work. 

The United States therefore proposes tlie addition 
to the agenda of the Ninth Regular Session of the 
G'eneral Assembly of an item entitled "International 
Cooperation in Developing the Peaceful Uses of 
Atomic Energy : Reiwrt of the United States of 
America." ' 



' Made in the General Committee on Sept. 24 
(U.S./U.X. press release 196.3). 
' For text of formal request, see opposite page. 



I am .sure that the members of this committee 
will agree that this is an urgent and imiwrtant 
matter in the .sense of rule l."> of the General As- 
.sembly. The inclusion of this item on our agenda 
will permit the United States and other governments 
principally involved in the development of atomic 
energy to report more fully to this Assembly on the 
progress already achieved and on the efforts to 
set up an international atomic energy agency. It 
will also enable the General Assembly to consider 
the convening of an international scientific con- 
ference under the auspices of the United Nations 
to hel]) in identifyini; areas in which further tech- 
nical progress might be made. 1 am certain that 
the great majority of the members of the Unitetl 
Nations are anxious for this opportunity to assist 
in making the promise of atomic energy a beneticeut 
reality for all jieople. 

The United States believes that this item should 
be discussed in the Political Committee and recom- 
mends that tlie General Committee so decide. 

Ttiere is probably no single matter before us at 
this General Assembly which holds out greater prom- 
ise for actively and constructively promoting the 
material welfare of mankind. ' 



' The General Committee decided unanimously to 
add the U.S. Item to the agenda as an Important 
an<l urgent matter. After a statement by the Soviet 
representative, Andrei Vyshinsky, favoring the 
recommendation, Ambassador Lodge made the 
following additional remarks : 

"Of course, no one will be happier than the repre- 
sentative of the United States to find that the Soviet 
Union by Its actions makes clear its cooperation 
with this great idea. But let us not forget the words 
of the old proverb — actions speak louder than words. 
The world has been waiting for such action since 
last December 8. Secretary Dulles said yesterday 
we will be glad to publish the entire correspondence 
and then the world can reach its own judgment." 



whose initial membership -will inchide nations 
from all regions of the world. It is hoped that 
such an agency will start its work as early as next 
year. 

(2) Tlie calling of an international scientific 
conference to consider this whole vast subject, to 
meet in the spring of 1955, under the auspices of 
the United Nations. 

(3) The opening early next year, in the United 
States, of a reactor training school where stu- 



dents from abroad may learn the working princi- 
ples of atomic energy with specific regard to its 
peacetime uses. 

(4) The invitation to a substantial number of 
medical and surgical experts from abroad to par- 
ticipate in the work of our cancer hospitals — in 
which atomic energ}' techniques are among the 
most hopeful approaches to controlling this men- 
ace to mankind. 

I would like to make perfectly clear that our 



Ocfober 4, 1954 



475 



planning excludes no nation from participation in 
this great venture. As our proposals take shape, 
all nations interested in participating, and willing 
to take on the responsibilities of membership, will 
be welcome to join with us in the planning and 
execution of this program. 

Even though much is denied us by Soviet nega- 
tion, nevertheless much remains that can be done. 
There is denied the immense relaxation of tension 
which might have occurred had the Soviet Union 
been willing to begin to cooperate with other na- 
tions in relation to what offers so much to fear and 
so much to hope. Nevertheless, there is much to 
be accomplished in the way of economic and hu- 
manitarian gains. There is no miracle to be 
wrought overnight. But a program can be made 
and vitalized to assure that atomic energy can 
bring to millions a better way of life. To achieve 
that result is our firm resolve. 

Closely allied to this question of peaceful uses 
of atomic energy is the whole vast and complex 
question of disarmament. At this Assembly last 
year, the United States affirmed its ardent desire 
to reduce the burden of armament. I stated here 
that the United States would vigorously carry 
forward the technical studies on armament con- 
trol and limitation which are vital to any solution 
of this problem. 

London Talks on Disarmament 

Last spring the United States participated in 
discussions in London with the Soviet Union, the 
United Kingdom, France, and Canada on a sub- 
committee of our Disarmament Commission to see 
whether a fresh approach to the problem could 
achieve a solution acceptable to the Soviet Union 
as well as to the free world.^ The record of these 
meetings has now been made public. 

It shows that the representatives of Canada, 
France, the United Kingdom, and the United 
States tried with patience and ingenuity to ex- 
plore all avenues of agreement with the Soviet 
Union whicli would be consistent witli tlie security 
of all nations. Once more we made clear, as we 
have again and again in the past, that we seek to 
eliminate tlie use of atomic energy for any pur- 
poses but those of peace. 

These efforts were met by a flat refusal by the 
Soviet Union even to discuss our proposals on 



'Ibid.. Auk. 2, 1954, p. 171. 
476 



their merits. The crux of the Soviet position was 
that, before it will engage in real negotiations on 
disarmament, it insists upon a paper ban by the 
major powers of the use of nuclear weapons. 
The great shield, the supreme deterrent, must first 
be abandoned, leaving the free nations exposed to 
the Communists' unrivaled manpower. Once that 
inequality has been assured, then — perhaps — the 
Soviet Union will negotiate further from its posi- 
tion of assured supremacy. Such procedure 
would not increase the security of any free nation. 
Reluctantly we must conclude that the Soviet 
Union has at present no serious desire to nego- 
tiate on the disarmament problem. But we shall 
continue to hope, and to seek, that the Soviet Union 
may ultimately .come to cooperate on a program 
which could end the wasteful diversion of vast 
economic wealth and bring it into the constructive 
service of mankind. 



Charter Review 

No doubt you will have observed that many of 
tlie efforts for peace to which I have referred were 
conducted outside of the United Nations itself. 
It should not, however, be forgotten that the 
organs of the United Nations are themselves stead- 
ily carrying forward activities which contribute 
substantially, even though not spectacularly, to 
the political, economic, and social conditions 
which are the foundation for peace. The United 
States wishes to pay a high tribute to those who 
perform these indisi)ensable tasks. 

If many major political developments have oc- 
curred outside the immediate framework of the 
United Nations, that is due to two causes— one 
good, one bad : 

The charter of the United Nations itself pro- 
vides that the parties to any dispute which would 
endanger international peace and security should 
first of all seek a solution by negotiation, resort 
to regional agencies, or other peaceful means of 
their own choice. Only when tliese methods fail 
should there be resort to the Security Council. In 
other words, the Security Council of the United 
Nations was never intended to be a court of first 
instance, but only a court of last resort. In this 
sense, the unprecedented peace efforts of tlie past 
year fall within the pattern which our charter 
itself prescribes. 

A second cause exists, and it is disturbing. It 
is the fact that the membership of the United Na- 



Deparfment of State Bulletin 



tions fulls fur short of representinj; the totiility of 
those nations which are peace-loving, which are 
able and willing to carry out the obligations of 
the charter, and which are indispensable parties 
to many critical international problems. Four- 
teen nations are now debarred from membership 
only through the use — in reality the abuse — of the 
so-called veto power. None of these is in the cate- 
gory of Conununist China, which has been found 
by the United Nations to be guilty of aggression. 
All 1-t are fully qualified for membership. Unless 
ways can be found to bring peace-loving, law-abid- 
ing nations into this organization, then inevitably 
the power and influence of this organization will 
progi'essively decline. 

We are approaching the tenth anniversary of 
the founding of the United Nations. All of the 
member governments and their peoples may prop- 
erly be thankful for the great accomplishments 
of the United Nations and for its unique service as 
a forum for international discussion. However, 
tliis coming anniversary must be made more than 
a date for self -congratulations. It is the time to 



take account of weaknesses of our organization and 
of ways in which it can be made to function better 
as a guarantor of ])eaco and justice and as a cen- 
ter for harmonizing the actions of nations. That, 
indeed, was the idea of the founders, who planned 
for a charter i-eview conference to be called at the 
ne.xt annual session of our Assembly. 

The search for peace has had its high hopes and 
its deep frustrations. But after the frustration, 
there is always renewed hope. On behalf of the 
United States I would say in my closing words 
that we believe that international peace is an at- 
tainable goal. That is the premise that underlies 
all our planning. AVe propose never to desist, 
never to admit discouragement, but confidently 
and steadily so to act that peace becomes for us 
a sustaining principle of action. In that, we know 
that we shall not be alone. That is not merely be- 
cause we have treaties of alliance and bonds of ex- 
pediency. It is because the spirit of peace is a 
magnet that draws together many men and many 
nations and makes of them a fellowship of loyal 
partners for peace. 



BULLETIN Marks Twenty-fifth Anniversary 



This issue of the BULLETIN marks the twenty- 
fifth anniversary of the publication of an official 
periodical by the Department of State. 

The first issue of Press Releases, predecessor to 
the BULLETIN, appeared on October 5, 1929. It 
contained, among other documents, a message from 
Secretary Stimson on the death of the German 
Foreign Minister, Gustav Stresemann. The second 
issue included the text of the British Government's 
invitation to the London Naval Conference, a 
message from President Hoover to the President 
of Argentina on the inauguration of air mail serv- 
ice between their countries, and information con- 
cerning the visit to Washington of Prime Minister 
Ramsay MacDonald. 

Issue No. 1 of Press Releases also was Publica- 
tion No. 1 in the Department's newly inaugurated 
publication program. The consecutive numbering 



system begun at that time is still in effect; publi- 
cation No. 5545, Foreign Relations of the United 
States, 1937, Volume IV, The Far East, was released 
on September 25. 

On July 1, 1939, the Department of State BUL- 
LETIN first made its appearance, superseding both 
Press Releases and the monthly Treaty Informa- 
tion bulletin. The decision to discontinue the 
latter publications was based on the belief that 
"a single bulletin containing both treaty informa- 
tion and information on other closely related 
aspects of the conduct of American foreign rela- 
tions would constitute a more useful and convenient 
source for current reference and for filing than 
two separate publications." 

The present format of the BULLETIN was 
adopted with the issue of October 6, 1946. 



Ocfober 4, 1954 



477 



Correspondence With Soviet Union on Atomic Pool Proposal 



Press release 531 dated September 25 

FoUoioing are the texts of documents exchanged 
between the Governments of the United States 
and the Union of Soviet Socialist RepuUics be- 
tween January and September 1954 during the 
course of negotiations concerning President Eisen- 
hower's proposals before the United Nations Gen- 
eral Assembly on December 8, 1953. 



NOTE HANDED TO AMBASSADOR GEORGI 
ZAROUBIN BY SECRETARY DULLES, 
WASHINGTON, JANUARY 11 

1 The United States suggests that the conversation with 
reference to atomic energy should initially he conducted 
through diplomatic channels, reserving the right of any 
participant to propose shifting the deliberations to the 
United Nations pursuant to its resolution suggesting pri- 
vate discussions under the auspices of the Disarmament 
Commission.' 

•> It is suggested that the diplomatic discussions take 
place at Washington and wherever else it is convenient 
for the participants to meet. Presumably Mr. Molotov 
and Mr. Dulles would have a private discussion at Berlin." 

3 It is suggested that procedural talks should in their 
initial stage be limited to the U.S.S.R. and the United 
States, with the participation of the other nations prin- 
cipally involvetl as determined in the light of the subject 
matter to be discussed. 

4. The United States is prepared to consider any pro- 
posal that the Soviet Union sees fit to make with reference 
to atomic, hydrogen and other weapons of mass de- 
struction. 

5. However, the United States believes that the first 
effort should be to proceed on a modest basis which might 
engender the trust and confidence necessary for planning 
of larger scope. That is why the United States urges an 
early discussiim of the proposal made by President Eisen- 
hower on December 8, 1!)5:{. The United States is prepared 
to have concrete private discussions about this plan and 
its possible implementation. 

" Bulletin of Dec. 14, 1953, p. 838. 

'I.e. during the four-power conference opening at 
Berlin on Jan. 25. 



478 



6 The United States suggests that privacy will best 
serve practical results at this time and that these talks 
should not be used for propaganda purposes by either side. 



NOTE HANDED TO SECRETARY DULLES BY 
AMBASSADOR ZAROUBIN, WASHINGTON, 
JANUARY 19 

[Translation] 

In connection with the aide memoire handed by .T. F. 
Dulles, Secretary of State, to Ambassador G. N. Zaroubin 
on January 11, the Soviet Government considers it neces- 
sary to communicate the following. 

1. Paragraph 1 of the U.S. aide memoire states : 

The United States suggests that the conversation with 
reference to atomic energy should initially be conducted 
through diplomatic channels, reserving the right of any 
participant to propose shifting the deliberations to the 
United Nations pursuant to its resolution suggesting 
private discussions under the auspices of the Disarma- 
ment Commission. 

On this point there are no remarks. 

2. Paragraph 2 of the aide memoire of the U.S.A. states : 

It is suggested that the diplomatic discussions take 
place at Washington and wherever else it is convenient 
for the participants to meet. Presumably Mr. Molotov 
and Mr. Dulles would have a private discussion at Berlin. 

On paragraph 2 there are no remarks. 

3. In paragraph 3 of the aide memoire of the U.S.A. 
it is said : 

It is suggested that procedural talks should in their 
initial stage be limited to the U.S.S.R. and the United 
Staes, wfth the participation of the other nations 
principally involved as determined in the light of the 
subject matter to be discussed. 

Agreement is expressed regarding the considerations 
stated in paragraph 3 of the aide memoire, keeping in 
mind that at the specified stage of the negotiations there 
will be considered the necessity for drawing into the 
negotiations all powers that bear the chief responsibility 
for maintaining peace and international security. 

4. Paragraph 4 of the aide memoire of the U.S.A. states : 

The United States is prepared to consider any proposal 
that the Soviet Union sees fit to make with refe^-ence to 
atomic, hydrogen and other weapons of mass destruction. 



Deparfmenf of Sfafe Bu//ef/n 



Ill tills connection It is necessnr.v to recall the stnte- 
meiit made by the Soviet Government on December 21, 
1S)53,' which pointed out that the Soviet Govcniuient pro- 
ceeds ou the liasis of the assuiiiptioii that during the 
course of the neiiotialions tlu'ic will be coiisldi'icd at the 
same time the proposal of the Soviet I'nioii with regard 
to an agreement under which the states participating in 
the agreement would assume the uucuuditional obliga- 
tion not to use the atomic, hydrogen, or any other weapon 
of mass destruction. 

r>. In paragraph 5 of the aide memolre of the U.S.A. 
It is said : 

However, the United States believes that the first effort 
should be to proceed on a modest basis which might en- 
gender the trust and confidence necessary for planning of 
larger scope. That is why the United States urges an 
early discussion of the proposal made by President Eisen- 
hower on December 8. I!iri3. The United States is pre- 
pared to have concrete private discussions about this plan 
and its possible implementation. 

The Soviet Government agrees to consider President 
Ei-senhower's proposal of December 8, 1953, and likewise 
agrees to enter into the said negotiations relating to this 
proposal. At the same time the Soviet Government con- 
siders it necessary to negotiate to the effect that in the 
discussion of this proposal made by the U.S.A. and the 
proposal made by the U.S.S.R. as mentioned in paragraph 
4, the principle of rotation be observed, with one con- 
ference being devoted to the consideration of the U.S. pro- 
posal and the next being devoted to the consideration of 
the U.S.S.R. proposal. 

6. Paragraph 6 of the aide memoire of the U.S.A. 
states : 

The United States suggests that privacy will best serve 
practical results at this time and that these taUis should 
not be used for propaganda purposes by either side. 

On this paragi-aph there are no remarks. 



DRAFT DECLARATION HANDED TO SECRETARY 
DULLES BY MR. MOLOTOV, BERLIN, 
JANUARY 30 

[Translation] 

Draft Declaration of the Governments of the United 
States of America, England and France, Chinese People's 
Republic and the Soviet Vnion Concerning Unconditimial 
Renunciation of Use of Atomic, Hydrogen and Other 
Forms of Weapons of Mass Destruction. 

The Governments of the United States of America, Eng- 
land, France, Chinese People's Republic and the U. S. S. R., 
determined to deliver humanity from the threat of de- 
structive war with the use of atomic, hydrogen, and other 
forms of weapons of mass destruction, desirous of as- 
sisting In every way in the utilization of the great scien- 
tific discoveries in the field of atomic energy only for 
peaceful purposes for the well-being of peoples and the 
amelioration of their Living conditions. 



•Bulletin of Jan. 18, 19.j4, p. 80. 
Ocfober 4, 1954 



Considering that the unconditional renunciation by 
states of the use of atomic, hydrogen, and other forms of 
weapons of mass destrui'tion corresponds to the basic pur- 
IM)se8 of the organization of the United Nations and 
would constitute an iiri|Hirtant steii on the road to the 
complete withdrawal from national armaments of the 
atomic, hydrogen, and other forms of weapons of mass 
destruction with the establishment of strict Interna- 
tional control guaranteeing the execution of agreement 
concerning the prohibition of the use of atomic energy 
for military purpo.ses, animated by the aspirations of the 
peoples for a reduction in international tension. 

Solemnly declare that they take upon themselves the 
unconditional obligation not to use atomic, hydrogen, 
and other forms of weapons of mass destruction ; 

Call on other countries to adhere to the present decla- 
ration. 



AIDE MEMOIRE HANDED TO 
SECRETARY DULLES BY MR. MOLOTOV, 
BERLIN, FEBRUARY 13 

[Translation] 

1. In the aide memoire presented by the Ambassador of 
the U. S. S. R. in Washington to the Secretary of State 
of the U.S.A. on January 19, 1954, the Soviet Government 
expressed tie view that at a subsequent stage of the ne- 
gotiations on the atomic problem all the powers hearing 
primary responsibility for tlie maintenance of peace and 
international security should be invited to take part. 

In a private talk with Mr. Dulles on January 30 last, 
V. M. Molotov explained that the powers referred to are 
the Five Powers, namely, the United States of America, 
the Soviet Union, Britain, France, and the Chinese Peo- 
ple's Republic. 

2. In that talk Mr. Dulles expressed the view that 
Britain, France, and also Canada and Belgium should be 
invited to join in the negotiations on the atomic problem, 
and he explained that Canada and Belgium should take 
part as countries possessing resources of atomic mate- 
rials. 

3. In connection therewith the Soviet Government states 
that it would have no objection to the participation in 
the negotiations on the atomic problem at an appropriate 
stage, besides the Five Powers, of Canada and Belgium, 
and also believes it necessary to have Czechoslovakia in- 
vited to take part in the said negotiations as a country 
possessing atomic materials. 



LETTER FROM SECRETARY DULLES TO 
MR. MOLOTOV, BERLIN, FEBRUARY 16 

Dear Mr. Minister: I refer to your Aide Memoire, 
which you handed me on February 13, 1954, regarding 
the discussions on the atomic proposal. 

In your numbered paragraph 2, you state that I "ex- 
pressed the view that Britain, France and also Canada 



479 



and Belt;ium should be invited to join in the negotiations 
on tlie atomic problem, and (he) explained that Canada 
and Belgium should take part as countries possessing re- 
sources of atomic materials." This statement does not 
fully accord with my recollection of what I said on the 
subject on January 30. I would like to clear up the 
apparent misunderstanding. At that discussion I said 
that the United Kingdom, Canada and France had all 
made progress in the atomic field. I then referred to 
Belgium and other countries which were important sources 
of raw material. In these circumstances I indicated that 
if we shifted our talks from a bilateral basis to a broader 
conference at that .«tage the United States would raise 
the problem of what countries should participate. 

In connection with the jieneral subject of possible fu- 
ture participation, I should like to call your attention 
once more to a general statement which I have made re- 
peatedly here in Berlin. This is that the United States 
is not prepared to participate In any conference with the 
Chinese Communist regime on the theory that it has, or 
shares, any special position of responsibility for the 
maintenance of international peace and security. 

I shall hope to be in a position to hand to Ambassador 
Zaroubin in Washington, shortly after my return, a memo- 
randum on the substance of the President's proposal. 
Very truly yours, 

John Fosteb Dulles 

His Excellency 

V. M. MOLOTOV, 

Minister of Foreign Affairs for 

the Union of the Soviet Socialist Republics. 



LETTER FROM MR. MOLOTOV TO 
SECRETARY DULLES, BERLIN, FEBRUARY 18 

[Translation] 

Deab JIr. Secret aby of State : I confirm the receipt of 
your letter of February 16, 1954. 

Inasmuch as you are already preparing to depart today, 
I will .send my reply to your letter through the Ambassador 
of the Soviet Union in Washington, Zaroubin. 
Respectfully, 

V. MoLOTOV 



MEMORANDUM HANDED TO ACTING 
SECRETARY SMITH BY AMBASSADOR 
ZAROUBIN, WASHINGTON, MARCH 10 

[Translation] 

In connection with the letter from the Secretary of 
State of the United States of America of February 16 
of this year addressed to Mr. V. M. Molotov, Minister 
of Foreign Affairs of the U. S. S. K., I am instructed by 
Mr. V. M. Molotov to state the following : 

The views expressed in the letter that it is not con- 
sidered expedient to deflne at present which specific coun- 



tries should be invited to participate in the talks on the 
atomic question at a later stage of the talks have been 
noted. 

As already stated in the aide memoire handed to Mr. 
Dulles by Ambassador Zaroubin January 19, as well as 
in the private discussion held by Mr. V. M. Molotov and 
Jlr. Dulles at Berlin, the Soviet Government agrees to 
negotiate with the Government of the United States of 
America on the atomic question on a bilateral basis. At 
the same time, in case It is decided to shift these negotia- 
tions to a broader basis, there is no objection to an addi- 
tional examination of the question as to the participants 
in such negotiations. 

With regard to the possible participation of the Chinese 
People's Republic in the negotiations on the atomic ques- 
tion at a subsequent stage, the opinion of the Soviet Gov- 
ernment on this question was stated in the aide memoire 
of February 13. 



MEMORANDUM HANDED TO AMBASSADOR 
ZAROUBIN BY SECRETARY DULLES, 
WASHINGTON, MARCH 13 

Outline of an International Atomic Enekgt Agency 

The United States Government wishes to submit addi- 
tional tentative views amplifying the proposals for an 
International Atomic Energy Agency as presented by the 
President of the United States to the United Nations 
General Assembly on December 8, 1953 : 

I. The Objectives of the U.S. Proposals 

The U.S. propo.ses that there should be established 
under the aegis of the United Nations an Inter- 
national Atomic Energy Agency to receive supplies 
of nuclear materials from those member nations 
having stocks of such materials to be used for the 
following objectives : 

A. to encourage world-wide research and develop- 
ment of peaceful uses of atomic energy by assuring 
that engineers and scientists of the world have 
sufficient materials to conduct such activities and 
by fostering the interchange of information. 

B. to furnish nuclear materials to meet the needs of 
agriculture, medicine, and other peaceful activ- 
ities including the eventual production of power. 

II. The International Atomic Energy Agency 

A. The Agency would be created liy and derive its 
authority under the terms of a treaty among the 
participating nations. To the greatest extent 
practicable, the treaty should define standards and 
principles which would govern the Agency in the 
discharge of its functions. 

B. Membership — all signatory states would be mem- 
bers of the Agency. 



480 



Department of State Bulletin 



C. Uoverning Itoiiy 

1. The highest executive authoritj in the Aseuoy 
should tie t'xorcisoil liy ii Hoard of Governors, 
of limited nienihership reiireseiitin}; t;overn- 
ments. In deterininiiiL; the eoiiiiiosltion of the 
Hoard of Governors, it might be desirable to 
take account of geographic distribution and 
membership by prosi>ective bcuellciarics. It is 
expected that the principal eontril)utors would 
be on the Board of Governors. 

2. It is suggested that decisions of the Board 
of Governors generally should be taken by some 
form of majority vote. Arrangements could 
be worked out to give the principal contribut- 
ing countries special voting privileges on cer- 
tain matters, such as allocations of fissionable 
material. 

D. Staff— The Staff of the Agency should be headed 
by an administrative head or general manager, 
appointed for a fixed term by the Board of Gover- 
nors and subject to its control, and, of course, 
include highly qualified scientific and technical 
personnel. Under the general supervision of the 
Board, the administrative head should be responsi- 
ble for the appointment, organization and func- 
tioning of the Staff. 

E. Financing 

1. Funds for the central facilities and fixed plant 
of the Agency and its research projects should 
be provided through appropriation by the par- 
ticipating states in accordance vfith a scale of 
contributions to be agreed upon. It is sug- 
gested that it might be possible to utilize the 
general principles governing the scale of con- 
tributions by individual members to the UN. 

2. Funds for specific projects submitted by mem- 
ber nations to utilize the materials or services 
of the Agency should be provided by the re- 
cipient country concerned through specific ar- 
rangements in each case. 

F. The administrative headquarters of the Agency 
could be located at a place mutually agreed upon. 

G. Relationship to the United Nations and Other 
International Bodies — The Agency should submit 
reports to the UN Security Council and General 
Assembly when requested by either of these or- 
gans. The Agency should also consult and cooper- 
ate with other UN bodies whose work may be 
related to that of the Agency. 

H. The facilities of the Agency would include : 

1. Plant, equipment, and facilities for the receipt, 
storage, and issuance of nuclear materials. 

2. Physical safeguards. 

3. Control laboratories for analysis and verifica- 
tion of receipts and inventory control of nu- 
clear materials. 

4. Necessary housing for administrative and other 
activities of the Agency not included in the 
preceding categories. 



5. Those faclUtleB, as iiiigbl in time be necessary, 
for such purposes as education and training, 
research and development, fuel fabrication 
and chemical processing. 

111. Ftinction.i of the Aijcnvy 

A. Receipt and Storage of Materials 

1. All member nations possessing stocks of normal 
and enriched uranium, thorium metal, U-2.'W, 
U-235, U-2.'$8, Plutonium and alloys of the fore- 
going would be expected to make contributions 
of such material to the Agency. 

2. The United States would be prepared to make 
as a donation, a substantial initial contribution 
of nuclear materials towards the needs of the 
Agency. The USSR would make an equivalent 

donation towards these needs. 

3. The Agency would specify the place, method of 
delivery, and, when appropriate, the form and 
composition of materials it will receive. The 
Agency would also verify stated quantities of 
materials received and would report to the 
members these amounts. The Agency would be 
responsible for storing and protecting materials 
in a way to minimize the likelihood of surprise 
seizure. 

B. Allocation of Materials by the Agency 

1. The Agency would review proposals submitted 
by participating members desiring to receive al- 
locations of Agency stocks in the light of uni- 
form and equitable criteria, including: 

a. The use to which material would be put, in- 
cluding scientific and technical feasibility. 

b. The adequacy of plan.s. funds, technical 
personnel, etc., to assure effective use of the 
material. 

c. Adequacy of proposed health and safety meas- 
ures for handling and storing materials and 
for operating facilities. 

d. Equitable distribution of available materials. 

2. Title to nuclear materials would initially remain 
with the Agency, which would determine fair 
payment to be made for use of materials. 

3. In order to insure that adequate health and 
safety standards were being followed, and in 
order to assure that allocated fissionable ma- 
terial is being used for the purposes for which 
it was allocated, the Agency would have the 
continuing authority to prescribe certain design 
and operating conditions, health and safety 
regulations, require accountability and operat- 
ing records, specify disposition of byproduct 
fissionable materials and wastes, retain the 
right of monitoring and require progress reports. 
The Agency would also have authority to verify 
status of allocated material inventories and to 
verify compliance with the terms of issuance. 

4. Information about all transactions entered into 
by the Agency would be available to all members. 

C. Information and Service Activities of the Agency 
1. All member nations possessing information 



October 4. 1954 



481 



relevant to the activities of the Agency would 
be expected to make contributions from that 
information to the Agency. 
. In addition to data developed as a result of its 
own activities, the Agency would have avail- 
able: 

a. Data developed by participating countries as 
a result of the utilization of the materials, 
information, services, and other assistance 
of the Agency. 

b. Data already publicly available in some of 
the countries. 

c. Data developed and previously held by prin- 

cipals or other members and voluntarily con- 
tributed to the Agency. 

. The Agency would encourage the exchange of 
scientific and technical information among na- 
tions, and be responsible for makiag wide dis- 
semination of the data in its possession. 

. The Agency would serve as an intermediary 
securing the performance of services by one 
participating country for another. Among the 
specific activities the Agency might provide 
would be the following: 

a. Training and education. 

b. Services concerned with developing codes for 
public health and safety in connection with 
the utilization of fissionable materials. 

c. Consultative technical services in connection 
with the establishment and carrying on of 
programs. 

d. Processing of nuclear materials (i. e., chem- 
ical separation and purification, fabrication 
of fuel elements, etc.). 

e. Supply of special materials, such as lieavy 
water. 

f. Design and supply of specialized equipment. 

g. Special laboratory services such as conduct 
of experiments and tests. 

h. Aid in making financial arrangements for 
the support of appropriate projects. 



AIDE MEMOIRE HANDED TO SECRETARY 
DULLES BY MR. MOLOTOV, GENEVA, 
APRIL 27 

[Translation] 

In connection with tlie memorandum of the Govern- 
ment of the U. S. A. dated March 19, containing supple- 
mentary explanations concerning the international organ 
(agency) of atomic energy, discussed in President Eisen- 
hower's statement of December 8, 1953, the Soviet Govern- 
ment considers it neces.sary to state the following consid- 
erations. 

In the aforementioned statement of the President of 
the U. S. A. which underlined the special danger of the 
atomic weapon, a i)roiK)sal was made that tlie appropriate 
states allocate a small part of the atomic materials out 



of their stocks for the disposal of the International 
Agency to use for peaceful needs. In the memorandum 
of JIarch 19 several details of the organization of the 
aforementioned International Agency were given, but 
those remarks which were made by the Soviet Govern- 
ment in its statement of December 21 concerning the 
statement of the President of the U. S. A. on December 
8 were completely ignored. Nevertheless, these remarks 
of the Soviet Government aim to achieve an agreement 
concerning the prohibition of atomic weapons and to 
secure the acceptance of an obligation by the states in 
the very near future not to use atomic and hydrogen 
weapons, which are by their nature weapons of aggression. 

In his address of December 8 the President of the 
U. S. A. declared "My country wants to be constructive, 
not destructive. It wants agreements, not wars, among 
nations." In this statement the President of the U. S. A. 
al.so said : "The United States, heeding the suggestion 
of the General Assembly of the United Nations, is 
instantly prepared to meet privately with such other 
countries as may be 'principally involved', to seek 'an 
acceptable solution' to the atomic armaments race which 
overshadows not only the peace, but the very life, of 
the world." 

These statements of the President of the U. S. A. 
expressed wishes for peace, a yearning to find a solution 
of the problem of the atomic armament race, together 
with representatives of other countries, and a desire to 
achieve "agreements, not wars, among nations." Inas- 
much as it is the constant aspiration of the Government 
of tlie U. S. S. R. to assist in strengthening peace among 
nations and under present conditions, in particular, 
to assist in the elimination of the threat of an atomic 
war, the Soviet Government has expressed readiness to 
take part in the appropriate negotiations. 

However, the Soviet Government has considered and 
still considers it necessary to call special attention to the 
following. 

First : The proposal of the U. S. A. that the appropriate 
states place a small part of atomic materials out of their 
stocks at the disposal of the International Organ to be 
used for peaceful needs, cannot assist in the achieve- 
ment of the aims set forth in the aforementioned address 
of the President of the U. S. A. By such an allocation of a 
small part of the atomic materials for peaceful needs, 
the principal mass of the atomic materials will go, as 
before, for the production of new atomic and hydrogen 
bomli.s, which means a further accumulation of atomic 
weapons and the possiliility of creating new types of this 
weaiwn of more destructive force. Such a situation 
means that the states which have the opportunity to 
produce atomic and hydrogen weapons will not be 
restrained at all in tlie furtlier increase of stocks of this 
weapon. 

The allocation of a small iKirtion of atomic materials 
out of the stocks in existence to be utilized for peaceful 
needs may only create the appearance that the quantity 
of atomic materials allocated for the production of 
atomic and hydrogen weapons is being decreased. But, 
in reality that is not the case at all. The production 
of atomic materials in a number of countries has been 



482 



Deparfmenf of Stale Bulletin 



jjrowln;,' with I'lU-li year so fast that the alhxatioii of a 
certain part for iH'acoful iuhhIs wili by no mi-ans reduce 
the quantity of the ucwly produced atomic and liydrofjen 
boml)s. Consequeutly, even In case tlie U. S. proiiosal 
should be carried out, it would be iiupos3tl)le to say that 
tlie atomic annament race is l>elnf; stopi>ed, as was said 
In the statement of the President of the V. S. A. of 
December 8. 

The level of science and tecbiiique which has been 
readied at the present time malies it iwssible for the 
very application of atomic energy for peaceful purposes 
to be utilized for increasing the production of atomic 
weaix)us. 

It is well known that it is practically feasible to 
carry out on an industrial scale a process of obtaining 
electrical power for peaceful needs by utilizing atomic 
materials, in which tlie quantity of the tissionable atomic 
materials applied in the process not only fails to decrease 
but, on the contrary, increases. And the harmless atomic 
materials are converted into explosive and fissionable 
materials which are the basis for the production of 
atomic and hydroiren weapons. In other words, the 
fact that the peaceful application of atomic energy is 
connected with the ixissibility of simultaneous produc- 
tion of atomic materials utilized for the manufacture 
of the atomic weapon is indisputable and has been proved 
in practice. Such a situation not only fails to lead to 
a reduction of the stocks of atomic materials utilized for 
the manufacture of atomic weapons, but also leads to an 
increase of these stocks without any limitations being 
applied either to the constantl.v increasing production of 
these materials in individual states or to production by 
the International Agency itself. 

Consequently, the proposal of the U. S. A. concerning 
the allocation of a certain portion of atomic materials to 
be utilized for peaceful purposes not only fails to stop the 
atomic armament race but leads to its further inten- 
sification. 

Second : The U . S. proposal of December 8, as well as 
the v. S. A. memorandum of March 19, completely evades 
the problem of the inadmissibility of the use of atomic 
weapons, which are weapons of mass destruction. 

The acceptance of President Eisenhower's proposal 
would by no means restrict the aggressor in utilizing 
atomic weapons for any purpose and at any time and 
con.sequeutly would not diminish at all the danger of a 
war with the use of atomic and hydrogen weapons. 

Thus, the acceptance of the aforementioned proposal of 
the U. S. A. would not introduce any change into the 
existing situation, when states which have at their dis- 
posal atomic materials and appropriate manufacturing 
and technical possibilities for the production of atomic 
weapons produce them on an increasing scale and ac- 
cumulate stocks of atomic and hydrogen bombs of more 
and more destructive power. Besides, all this takes place 
under conditions of complete absence of any international 
agreement whatsoever which binds states in the applica- 
tion of atomic and hydrogen weapons. 

However, it cannot be denied that recently there has 
been widespread uneasiness in many countries in connec- 
tion with the increase in the destructive power of the 
atomic weapon and especially In view of the appearance 



of I be hydrogen weapon. It would be wrong not to con- 
sider the.se well-known facts and the ever-lncreasingly in- 
sistent demands not to permit the use of the atomic and 
the hydrogen weapon In warfare. 

All this justifies the conclusion that neither the V. S. 
proposal of December S nor the U. S. memorandum of 
March 19 meets the basic purpose — elimination of the 
threat of atomic war. 

In its statement of December 21 the Soviet Government 
pointed out that if the Government of the U. S. A., as 
well as the Government of the U. S. S. R. Is striving to 
reduce International tension and strengthen peace, then 
the efforts of both Governments should be directed toward 
concluding an agreement for prohibiting the atomic weap- 
on and toward establishing a suitable and effective in- 
ternational control over this prohibition. With such an 
international prohibition against the atomic weapon, broad 
possibilities would be opened for the use of atomic energy 
for peaceful purposes. Since the statement of December 8 
of the President of the U. S. A. and the U. S. memorandum 
of March 19 both evade the question of prohibiting the 
atomic weapon and actually ignore the possibility of fur- 
ther unlimited increase in the production of this weapon 
and its u.se by an aggressor, the U. S. proposal for the 
creation of an international agency for the utilization of 
atomic energy does not reduce the danger of atomic war- 
fare in the slightest. Moreover, it may even serve ends 
that are the exact opposite. This proposal to use some 
portion of the atomic materials for peaceful purposes may 
create the deceptive appearance of curtailing the produc- 
tion of the atomic weapon and may lead to the relaxing 
of vigilance on the part of nations with regard to the 
growing threat of war with the use of this weapon of 
aggression and mass destruction of people. 

The fact that heretofore it has been impossible to con- 
clude an appropriate agreement for the unconditional 
prohibition of atomic, hydrogen, and other types of weap- 
ons of mass destruction not only does not diminish the 
importance of efforts in this direction but, on the contrary, 
makes such efforts still more necessary, taking into ac- 
count the ever-increasing danger for nations in connection 
with the continuing race in the production of the atomic 
and the hydrogen weapon. This applies especially to those 
states which have available the corresponding resources 
in atomic materials and are producing the atomic and the 
hydrogen weapon. 

If the matter were reduced merely to agreements be- 
tween states, that for peaceful purposes there should be 
allotted only some small portion of the atomic materials, 
but the production of the atomic weapon in the future 
also should not be restricted at all, then such an inter- 
national agreement would in fact grant an inadmissible 
sanction to the production of the atomic weapon, which 
would suit the convenience of the aggressive forces only. 
This sort of international sanction of the production of 
the atomic weapon not only would not facilitate the con- 
clusion of an agreement for its prohibition but would, on 
the contrary, be a new obstacle on the road to the conclu- 
sion of such an agreement. 

It is indispensable that not merely some portion, but 
the entire mass of atomic materials be directed entirely 
to peaceful purjKises, that the achievements of science In 



Ocfofaer 4, 1954 



483 



this field serve not purposes of war and mass destruction 
of people but purposes of improving economic life and 
culture, which would open up unprecedented opportunities 
for improving industry, agriculture, and transportation, 
for use in medicine, for perfecting technical processes and 
the further progress of science. 

The prohibition of the atomic and the hydrogen weapon 
and the utilization of all atomic materials for peaceful 
purposes, supplying the proper aid to regions that are 
economically weak, would at the same time promote the 
possibility of concluding an agreement on the matter of a 
decisive reduction in conventional types of armaments. 
This would make it possible to greatly alleviate the tax 
burden which nations are bearing as a result of the ex- 
istence in many states of inordinately swollen armies, 
since the armament race goes on. 

Desiring to facilitate the possibility of concluding an 
agreement for the unconditional and complete prohibition 
of the atomic weapon and the establishment of appro- 
priate international control, the Soviet Government, hav- 
ing expressed its readiness to take part in negotiations 
with respect to the proposal of the Government of the 
U. S. A., has, on its part, introduced the following pro- 
posal for consideration : 

Bcinp guided hy the desire to reduce international ten- 
sion, the states participating in the Agreement undertake 
the solemn and unconditional obligation not to use atomic, 
hydrogen, or any other weapon of mass destruction. 

This proposal was set down as the basis for the draft of 
a declaration of the Governments of the U. S. A., Great 
Britain, France, the Chinese People's Republic, and the 
Soviet Union, a draft which the Soviet Government com- 
municated on January 30 to the Government of the U. S. A., 
as well as to the Governments of Great Britain, France, 
and the Chinese People's Republic. The adoption of the 
obligation of unconditional repudiation of the use of the 
atomic and the hydrogen weapon by states, and first of 
all by the Great Powers, would mean a great step toward 
relieving humanity of the threat of atomic war with its 
countless sacrifices and hardships. 

The Soviet Government observes that the Government 
of the U. S. A. has so far not only failed to recognize the 
necessity for the urgent prohibition of the atomic and 
hydrogen weapon and for the establishment of appropri- 
ate international control over this prohibition, but it has 
also failed to express readiness to come to an understand- 
ing on the unconditional repudiation by states of the use 
of the atomic, the hydrogen, or any other weapon of mass 
destruction. In this connection, the Soviet Government 
attaches special importance to achieving coordination be- 
tween the positions of the U. S. S. R. and the U. S. A. with 
regard to the adoption by states of the solemn and un- 
conditional obligation not to use the atomic, the hydrogen, 
or any other weapon of ma.ss destruction. Consideration 
of the separate proposals regarding partial utilization of 
atomic materials for peaceful purposes, without agree- 
ment between states on repudiating the use of the atomic 
weapon, would not contribute anything at all toward re- 
ducing international tension and the danger of war. Be- 
sides, it might lead to a blunting of the vigilance of nations 
with regard to this danger. 



In view of the considerations cited and in accordance 
with General Eisenhower's statement concerning the de- 
sire of the U. S. A. to reduce international tension, the 
Soviet Government considers it urgently necessary In the 
first place to arrive at an agreement between the U. S. S. R. 
and the U. S. A. on the question of repudiating the use of 
the atomic weapon, without which the negotiations ini- 
tiated cannot yield the proper results, in which the peoples 
of our countries and other states are interested. 

As far as the other questions dealt with in the U. S. 
memorandum of March 19 are concerned, the inadequacy 
and one-sidedness of which are obvious, they can be con- 
sidered as a supplement, after arriving at agreement on 
the fundamental questions. 



INFORMAL PAPER LEFT WITH MR. MOLOTOV 
BY SECRETARY DULLES, GENEVA, MAY 1 

1. I have now read the aide-memoire of the Soviet 
Union of April 27 re the proposal for "an international 
atomic energy agency" submitted to the Soviet Ambassa- 
dor in Washington on March 19. This aide-memoire 
criticizes the proposal on the grounds that it would not 
substantially reduce atomic material stockpiles, or control 
the making or use of atomic weapons or remove the threat 
of atomic war. 

2. These criticisms misconstrue the purpose of the US 
proiwsal of March 19. By its terms this proiwsal was 
not intended as a measure for the control of atomic weaj)- 
ons or for solving itself the various other problems men- 
tioned in the Soviet note. Its purpose was the more 
limited one of initiating international cooperation in the 
field of atomic energy on a basis which would avoid many 
of the obstacles which have heretofore blocked any agree- 
ment. In this way the proposal could contribute to im- 
proving relations among the cooperating nations and 
thereby to facilitating solution of the more difficult prob- 
lem of effective control of atomic energy for military 
purposes. 

3. Accordingly, the US cannot concur in the view of the 
Soviet Union that creation of an international agency to 
foster the use of atomic materials for peaceful purposes 
would not be useful In itself. On the contrary, it be- 
lieves that such an agency could have valuable results 
both in encouraging closer cooperation among the par- 
ticipating nations and in expediting more extensive use 
of atomic energy for purposes beneficial to mankind. The 
US therefore regrets that the Soviet Union is not willing 
to explore this matter further at this time. 

4. In view of the lack of interest now of the Soviet 
Union in pursuing this proposal, the US will feel free to 
examine the creation of such an agency with other nations 
which might be interested. If the Soviet Union should 
later decide that it wishes to take part in any such dis- 
cussions, the US will, of course, welcome its participation. 

5. The US proposal of March 19 was, of course, not 
intended as a substitute for an effective system of control 
of atomic energy for military purposes. The US will 
continue, as heretofore, to seek means of achieving such 
control under reliable and adequate safeguards. It is 



484 



Department of State Bulletin 



prepareil to contiiiuo excliangi's of views with tlie Soviet 
Union for that purpose, and will shortly submit to the 
Soviet Union comments on its proposal referred to in its 
aide-memoire of April 127. 



MEMORANDUM HANDED TO AMBASSADOR 
ZAROUBIN BY ASSISTANT SECRETARY 
MERCHANT, WASHINGTON, JULY 9 

The United States has further considered the draft 
declaration of January 30 and Aide-Memoire of April 27 
delivered by the Soviet Union to the United States. The 
United States wishes to make the following comments : 



1. The President's speech of December 8, 1953 to the 
United Nations General Assembly pointed out the dangers 
of the atomic armaments race and stressed the desire of 
the United States to remove these dangers by any effective 
method which includes ade<iuate safeguards against viola- 
tions and evasions. The United States would welcome 
any system of disarmament which would serve to protect 
the peoples of the world from the threat of war and re- 
lieve them of the heavy burden of military defense in a 
manner consistent with their security. 

2. The United States is also aware of the difficulties 
which have been experienced since 1046 in trying to nego- 
tiate a disarmament plan. From that date until the 
present, the United States has persistently sought, alone 
and in concert with other nations, to find ways of easing 
the burden of armaments and of lessening the threat of 
war. In the United Nations Atomic Energy Commission 
from ISMO through 1948, in the Commission for Conven- 
tional Armaments from 1947 through 1950, in the special 
meetings of the Six Permanent Members of the United 
Nations Atomic Energy Commission in 1949 and 1950, and 
in the United Nations Disarmament Commission since 
1951, the overwhelming majority of nations was able to 
reach agreement— the Soviet Union alone prevented 
progress. 

3. Despite this discouraging record, the President, In 
his address on December 8, stated that the United States, 
heeding the resolution of November 28, 1953 of the General 
Assembly of the United Nations, was "prepared to meet 
privately with such other countries as may be 'principally 
involved' to seek 'an acceptable solution' to the atomic 
armaments race which overshadows not only the peace 
but the very life of the world." 

II. 

4. In his address, the President also stated that the 
•United States would carry into these talks a new pro- 
posal for an international atomic energy agency to expe- 
dite the use of atomic energy to serve the peaceful pur- 
suits of mankind. In its memorandum of March 19, the 
United States explained in more detail its views on the 
method for converting this conception into a practical 
reality. The Aide-Memoire of April 27 of the Soviet 
Union appears to misconstrue completely the purpose of 
this specific proposal. 



5. This proposal was intended to make a beginning to- 
ward bringing to the jieoples of the world the pea<eful 
benefits of atomic energy. This offer by the United States 
to Join with other nations having atomic facilities to 
furnish fissionable material and atomic energy technol- 
ogy for the common benefit, would provide u new opi)or- 
tunity for international cooperation. Successful coopera- 
tion in the implementation of the President's proposal 
would surely result in an Improved atmosphere, which, 
in turn, could significantly improve the prospects for 
genuine, safeguarded international disarmament. The 
proposal Itself was not put forward as a disarmament 
plan. 

6. The Soviet Aide-Memoire of April 27 states in effect 
that the USSR will not cooperate in steps to achieve 
peaceful benefits of atomic power for the world until the 
United States agrees to a ban on the use of atomic weap- 
ons. The primary reason given for this position is that 
under the President's United Nations proposal, stock- 
piles of weapon grade material could continue to increase 
after the international agency had been established. Yet 
the Soviet proposal for a ban on weapons' use would not 
in any way prevent such increases in stockpiles. Accord- 
ingly, the United States cannot agree that the Soviet 
position provides a valid objection to proceeding at this 
time with steps for promoting the peaceful uses of atomic 
energy. 

7. The Soviet Union also appears to assume that any 
form of peaceful utilization of atomic energy must neces- 
sarily increase stocks of materials available for military 
purposes. In reality, however, ways can be devised to 
safeguard against diversion of materials from power pro- 
ducing reactors. And there are forms of peaceful utiliza- 
tion in which no question of weapon grade material 
arises. 

8. The United States believes that the nations most ad- 
vanced in knowledge regarding the constructive uses of 
atomic energy have an obligation to make it available, 
wider appropriate conditions, for promoting the welfare 
of peoples generally. At the present stage of nuclear 
technologj-, the United States believes that it is now jms- 
sible to make a beginning in this direction. Accordingly, 
the United States will feel free to go ahead with its 
proposal with other interested nations, even though the 
Soviet Union does not wish to pursue it at this time. 
If at a later time the Soviet Union should decide to take 
part in any such discussions, the United States will con- 
tinue to welcome such participation. 

III. 

9. The Soviet Union refers to its proposal of January 30 
for an international agreement calling for unconditional 
renunciation of the use of atomic, hydrogen and other 
forms of weapons of mass destruction. The United States 
has thoroughly and earnestly considered this proposal in 
accordance with its oft-declared policy to examine with 
an open mind all suggested approaches to the problem 
of disarmament. 

10. In the opinion of the United States, any effective 
plan for disarmament must provide satisfactory answers 
to two fundamental questions : 

a. First, will the plan result in an actual reduction or 



Ocfober 4, 1954 

316699—54 3 



485 



elimination of national armaments in a manner con- 
sistent with the security of each nation? A paper 
promise not to use weapons will not enable the nations 
safely to reduce their armaments. The very existence 
of any weapon poses the possibility of its use, despite 
promises not to do so, which can be broken without 
notice. 

b. Second, will the plan materially reduce or elim- 
inate the danger of aggression and warfare? If any 
plan would, in fact, tend to increase the danger of re- 
sort to war by a potential aggressor, it would not ac- 
complish the basic purpose of disarmament. 

11. The Soviet Union's proposal of January 30 fails to 
meet either of these basic tests, or to offer any hofie for 
beneficial results in the disarmament field : 

a. It would leave unimpaired existing armaments 
and continued armament production. This is clear 
from the terms of the Soviet proposal itself. There 
would be only an exchange of promises not to make use 
of weapons which are still retained. There could be 
no certainty that these assurances would be observed. 
The maintenance of stocks of weapons and the con- 
tinued manufacture of weapons would bear ominous 
witness to the danger that the assurances might be 
disregarded. 

b. The danger of aggression and war would not be 
lessened if the Soviet proposal were put in effect. In- 
deed, it could be increased, since the deterrent effect 
upon a potential aggressor of the existence of nuclear 
weapons would doubtless be lessened if his possible vic- 
tims had undertaken an obligation not to use them. 
Such an aggressor might be tempted to initiate an at- 
tack in the hope that the ban would prevent or delay 
the use of such weapons in the defense of his victims. 
Yet, the aggressor with nuclear weapons would be in a 
position to repudiate his past assurances and employ 
nuclear weapons whenever it suited his interests. Thus, 
such a plan might merely serve to induce aggression 
and weaken its victims. 

12. Not only does the Soviet proposal fail to meet the 
necessary tests of any effective plan to prevent atomic 
warfare, but it would in fact harm the chances of adop- 
tion of any such effective plan. For surely the Soviet 
proposal, if it were accepted, would tend to create the 
deceptive impression that the danger of atomic warfare 
had somehow been limited and weaken the vigilance of 
the people regarding a threat which had, if anything, in- 
creased. This false sense of security could discourage 
further efforts to achieve genuine disarmament under 
effective safeguards, which would actually enhance the 
security of all, reduce the danger of war, and lighten the 
heavy burden of armaments. 

IV. 

13. The United States reaffirms, as it did in the resolu- 
tion adopted by the United Nations (Jeneral Assembly on 
November 17, 1950, that, whatever the method used, ag- 
gression itself is the gravest of all dangers. Only if there 
is aggression will the world be exposed to the horrors of 
modern war. 

486 



14. The signatories of the United Nations Charter have 
undertaken solemn assurances not to commit aggression. 
In conformity with its historic traditions, the United 
States will never violate that pledge. But, as indicated, 
the United States is convinced that the only truly effec- 
tive way to ensure that aggression will not take place 
and that nuclear weapons will not be used in war is to 
adopt a safeguarded, balanced system of disarmament. 
Such a system could materially reduce the chance of suc- 
cessful aggression, and thereby minimize the risk of any 
aggression at all. 

15. The United States continues to believe that a solu- 
tion of the armaments problem is essential. Despite its 
inability to accept the Soviet proposal, the United States 
is ready at all times to discuss acceptable measures for 
effective disarmament under proper safeguards. It is pre- 
pared to do so either in the continuation of private ex- 
changes or in the United Nations Disarmament Commis- 
sion. In view of the urgency of disarmament, the United 
States will welcome such a continuation if the Soviet 
Union considers it a useful means for seeking a common 
approach to this problem. 

16. The United States also hopes that, in the light of the 
foregoing, the Soviet Union will wish to comment further 
on the concrete proposal submitted by the United States 
on March 19, 1954. In any event the United States is 
prepared to renew with the Soviet Union at any time the 
talks on the President's proposal. 

Depabtment of State, 

Washington, July 9, 195-i. 



AIDE MEMOIRE HANDED TO AMBASSADOR 
BOHLEN BY MR. GROMYKO,' MOSCOW, 
SEPTEMBER 22 

[Translation] 

The Soviet Government has examined the U.S. Govern- 
ment's memorandum of July 9, 1954, which is in answer 
to the U.S.S.R. Government's aide memoire of April 27 and 
considers it necessary to state the following : 

In the above-mentioned aide-memoire of AprU 27 the 
Soviet Government set forth certain observations in con- 
nection with the U.S. Government's proposal concerning 
the establishment of an International Organ for Atomic 
Energy, whicli was discussed in President Eisenhower's 
statement of December 8, 1953. The Soviet Government 
drew attention to the fact that the implementation of the 
U.S.A.'s proposal, which provides that appropriate states 
allot from their stockpiles a certain part of atomic mate- 
rials to the disposition of the International Organ to be 
used for peaceful purposes, cannot contribute to stopping 
the atomic armaments race. In this connection the fact 
was pointed out that states which have the ability to pro- 
duce atomic and hydrogen weapons will in no way be 
hampered in further increase of stockpiles of them by 
allotting only a small part of atomic materials to peace- 



* Andrei Gromyko, Deputy Foreign Minister. 

Department of State Bulletin 



fill purposes while tUe luaiu body of these materials will 
as before go for production of atomic weapons. 

lu the above-mentioned aide meiuolre of April 27 the 
Soviet Government also drew attention to the fact that 
the United States of America's proposal avoids the ques- 
tion of the impermissibility of using atomic weapons which 
are weapons of mass destruction, and that acceptance of 
this proposal of the I'.S.A. would bring about no chant;e lu 
the existing situation, whereby states disposing of atomic 
materials and corresponding possibilities for production 
of atomic weapons are producing them on an ever-increas- 
ing scale and are building up stockpiles of atomic and 
hydrogen bombs of ever greater destructive force. 

Such a situation would mean that in fact inadmissible 
International approval would be given to the production 
of atomic weaixnis, a fact which not only would not facili- 
tate the attainment of agreement regarding prohibition 
of atomic weapons and their removal from state arma- 
ments but on the contrary would create new obstacles on 
the path of reaching such agreement. It is not hard to 
understand that this would serve the purpose only of a 
potential aggressor ; thus the U.S.A.'s proposal does not 
satisfy the basic aim — to remove the threat of atomic 
war. 

In its memorandum of July 9 the Government of the 
U.S.A. speaks of its desire to seek, together with other 
countries, ways of lessening the threat of war and light- 
ening the armaments burden. The Soviet Government is 
of the opinion that, if the Government of the U.S.A. as well 
as the Government of the Soviet Union desires to lessen 
the threat of war and lighten the armaments burden, the 
efforts of both Governments should be directed toward 
the attainment of an agreement regarding prohibition of 
atomic weapons with the establishment of strict interna- 
tional supervision over this prohibition and regarding sub- 
stantial limitation on conventional armaments of states. 

With just this end in mind the Soviet Government has 
more than once advanced proposals in the United Nations 
which provide for the conclusion of an international con- 
vention regarding unconditional prohibition of atomic 
weapons and other types of weapons of mass destruction 
and regarding substantial limitation of conventional arm- 
aments. In advancing these proposals the Soviet Govern- 
ment based itself on the fact that they answer the 
ever-increasing popular demands to put an end to the 
armaments race, including in field of atomic weapons, and 
to take urgent measures to deliver humanity from the 
horrors of destructive atomic war. Despite the assertion 
contained in the American memorandum of July 9, it is not 
the Soviet Union but the Government of the U.S.A. which 
has up to the present time prevented the conclusion of 
an agreement under conditions acceptable to all sovereign 
and equal states, both regarding prohibition of atomic 
weapons and also regarding substantial limitation of con- 
ventional armaments with establishment of effective su- 
pervision over fulfillment of such decisions. 

International agreement regarding prohibition of atom- 
ic weapons with establishment of appropriate supervision 
over this prohibition would open wide possibilities for 
use of atomic energy for peaceful purposes. 

As is known, up to this time it has not been possible 



to reach appropriate international agreement regarding 
unconditional prohibition of atomic, hydrogen, and other 
types of weapons of mass destruction, In view of the fact 
that the United States from the very beginning of the 
arising of the atomic problem has refused to take part 
together with other states in an international agreement 
prohibiting atomic weapons. 

However, the circumstance that it has not been possible 
to reach such agreement up to the present time should 
not diminish the significance of efforts to reach the re- 
quired agreement between interested states. 

Such a new effort on the Soviet Government's part to 
find a way out of the existing situation was the Soviet 
Union's proposal that states take upon themselves the 
unconditional ohligation not to use atomic, hydrogen, or 
other types of weapons of mass destruction. This pro- 
posal in the form of a draft of an appropriate declara- 
tion by states was transmitted to the United States Sec- 
retary of State, Mr. Dulles, on January 30. 

Renunciation by states of the use of atomic, hydro- 
gen, and other tyi)es of weapons of mass destruction 
would be an important step on the path toward removal 
from state armaments of these types of weapons and 
establishment of strict international supervision guaran- 
teeing fulfillment of an agreement regarding prohibition 
of use of atomic energy for military purposes. Accept- 
ance of the above-mentioned declaration would have tre- 
mendous significance in the matter of removing the threat 
of war in which atomic weapons would be used, would 
contribute to strengthening international trust and lessen- 
ing international tension, and also to improving atmos- 
phere, the importance of which the U.S. Government re- 
fers to in its aide memoire. 

As is apparent from the U.S. Government's memorandum 
of July 9, the Government of the U.S.A. has taken a 
negative position with regard to the above-mentioned 
proposal of the Soviet Union. As an objection to the 
Soviet proposal the U.S. Government refers to the alleged 
fact that it cannot be sure that an agreement regarding 
unconditional renunciation by states of use of atomic 
and hydrogen weapons will be carried out. However, If 
one takes this point of view, one must in such a case 
recognize that almost any international treaty or any 
agreement, and also consequently obligations undertaken 
in accordance with it, must be placed in doubt. It stands 
to reason that it is impossible to agree with this, since 
it contradicts established principles and standards of rela- 
tions between states. 

lu reality the international obligations of states which 
could arise out of a declaration regarding the renuncia- 
tion of use of weapons of mass destruction could have 
not less but rather far more significance than certain 
important international agreements concluded in the past 
whose positive significance is generally recognized. 

It Is known that during the First World War, when 
there was as yet no corresponding international agree- 
ment, there were widely used such weapons of mass de- 
struction as suffocating and poisonous gases and also other 
types of chemical weapons which met with the decisive 
condemnation of peoples. Specifically in this connection 
the necessity was recognized of concluding an interna- 



Ocfober 4, 1954 



487 



tlonal agreement forbidding the use of such types of 
weapons of mass destruction of people. As a result, the 
Geneva Protocol concerning prohibition of chemical and 
bacteriological weapons was signed in 1925. It is known 
that this protocol played an important role in preventing 
the use of chemical and bacteriological weapons during 
the Second World War, as a result of which peoples were 
spared the grave consequences of use of these weapons by 
belligerents. 

This fact shows that international agreements contain- 
ing obligations not to use specific types of weapons in 
war are not only possible but necessary and are important 
means of struggling for the strengthening of peace. This 
should be all the more applicable to an agreement con- 
cerning the most destructive weapons known to mankind, 
atomic and hydrogen weapons. 

Also groundless is the allegation contained in the U.S. 
Government's aide memoire that international agreement 
on the renunciation by states of the use of atomic and 
hydrogen weapons could increase the danger of war, as is 
also the assertion that the existing situation, which Is 
characterized by an unlimited race in the field of produc- 
tion of atomic weapons, creates greater security than the 
conclusion of an agreement on renunciation by states of 
the use of the types of weapons mentioned. Such an asser- 
tion is in clear contradiction to the actual situation and 
to the facts. It was specifically with the appearance of 
atomic and then hydrogen weapons, and also of rocket 
and other new types of weapons of mass destruction of 
ever-growing destructive force, that the armaments race, 
including the race in production of atomic and hydrogen 
weapons, especially gained intensity and at the same time 
the threat increased of atomic war with all the grave 
consequences ensuing therefrom for all peoples. 

On the other hand, the renunciation by states of the use 
of atomic and hydrogen weapons would change the inter- 
national situation, would assist in further reduction of 
tension in international relations and would lighten the 
burden of the armaments race and excessive expenditures 
on the maintenance in many states of swollen armed 
forces. This, in its turn, would create conditions for the 
transition to the nest step, to complete the prohibition 
of atomic and hydrogen weapons and their removal from 
the armaments of states. 

In the Soviet Government's aide memoire of April 27 
of this year attention was drawn to the fact that it is 
possible to carry out the process on an industrial scale of 
generating electrical energy through utilization of atomic 
materials whereby the quantity of fissionable materials 
used does not decrease but rather, on the contrary, in- 
creases. At the same time nondangerous materials are 
turned into dangerous and explosive materials capable 
of serving as the basis for production of atomic and 
hydrogen weapons. This means tliat the peaceful use of 
atomic energy is tied to the possibility of simultaneously 
producing explosive atomic njaterials for manufacture of 
atomic weapons, which immutably leads to an increase 
in the scale of production of atomic weapons and an 
increase in the stocks of these. 

In the U.S. Government's memorandum it is stated 
that forms of peaceful utilization of atomic energy are 
possible in which ways can be found to guarantee against 



seepage of materials from factories producing energy and 
that according to the opinion of the U.S. Government there 
are forms of peaceful utilization in which the question 
of materials going into production of atomic weapons does 
not arise. The Soviet Government is ready to examine in 
course of further negotiations the U.S. Government's 
views on this question. 

The proposal of the U.S. Government and the proposal of 
the Soviet Government, as well as the views expressed 
by both Governments in the course of negotiations show 
that it has not yet been possible to harmonize the posi- 
tions of the parties on a number of substantive questions. 
In the course of negotiations the Soviet Government in- 
sisted and continues to insist on the necessity for inter- 
national agreements which would insure that atomic 
energy would not be permitted to be used for military 
purposes and would make its use possible only for peaceful 
purposes, for the good of mankind. The U.S. Government 
also states that it desires to cooperate in the peaceful 
utilization of atomic energy. 

Inasmuch as reconciling positions of the U.S.A. and 
the Soviet Union on this question has an important sig- 
nificance for the achievement of international agreement 
regarding the use of atomic energy for peaceful purposes, 
the Soviet Government deems it desirable for both Gov- 
ernments to continue efforts to bring the positions of the 
parties closer together. One must not consider that the 
possibilities of making the positions of the parties agree 
have been exhausted, especially if one takes into account 
the fact that a number of concrete questions which arise, 
both in connection with the proposal of the Soviet Union 
and in connection with the proposal of the United States, 
have not yet been subjected to proper examination. More- 
over, thorough examination of these questions could assist 
in further clarification of the possibilities of reaching an 
appropriate agreement. 

In this connection the Soviet Government would con- 
sider it expedient to draw the attention of the U.S. Gov- 
ernment to certain important principles which one must 
not overlook in considering the question on international 
cooperation in the field of peaceful uses of atomic energy. 
The Soviet Government proceeds from the principle that 
an important prerequisite to international agreement in 
this field is recognition that any such agreement should 
not place any one state or group of states in privileged 
position whereby this state or group of states could enforce 
its will on other states. This is particularly worthy of 
emphasis in connection with the U.S. Government's pro- 
posal having to do with structure and governing bodies 
of the International Agency. 

Any International Organ created on the basis of an 
appropriate agreement between states can only success- 
fully carry out its functions if its competence, sufficiently 
wide to permit it effectively to fulfill the tasks entrusted 
to it, is not at the same time utilized to the detriment of 
the security of some of the other states. It can answer 
its purpose only if its competence and tasks, as well as its 
practical activity, are in conformity with generally rec- 
ognized principles of the charter of the United Nations. 

The Soviet Government shares the opinion of the U.S. 
Government regarding the thesis that the appropriate 
International Organ would report concerning its activity 



488 



Department of State Bulletin 



to the Security Council niul the General Assembly. It 
goes without siiyin^ that when, in this eonnectlon, ques- 
tions arise having to ilo with the security ot some of the 
other states, necessary decisions must be taken speclllcally 
by the Security Council in accordance with Its jiowers as 
the Organ on which Is placed principal responsibility for 
the maintenance ot peace and international security. 
This was recognized as early as .January VMQ when the 
ijrst decision of the United Nations concerning atomic 
problems was taken. 

The Soviet Government taking into consideration the 
declaration of the Government of the U.S.A. concerning 
willingness at any time to renew the negotiations con- 
nected with the peaceful uses of atomic energy, for its 
part declares its willingness to continue these negotiations 
for the examination of the proposals of the Soviet Govern- 
ment as well as the proposals of the Government of the 
U.S.A. 

In conclusion, the Soviet Government would like to 
know the opinion of the U.S. Government as to whether 
it is not desirable that all documents which have been 
mutually exchanged between the Governments of the 
Union of Soviet Socialist Republics and the United States 
of America during the course of the conversations which 
have taken place on the atomic problem should he pub- 
lished in the press of the Soviet Union as well as the press 
of the U.S.A. respectively in order that public opinion 
might be informed concerning the contents of these nego- 
tiations. In this connection the Soviet Government takes 
into consideration the fact that in the course of the con- 
versations which have taken place between the Soviet 
Union and the U.S.A., communications have appeared in 
the press which imprecisely elucidate certain questions 
concerning the position of the parties. 



LETTER FROM AMBASSADOR BOHLEN TO 
MR. GROMYKO, MOSCOW, SEPTEMBER 23 



tlio serious situation resulting from the rejection 
of tlic plan for a European Defense Conniuinity. 
Wo shall explore new approaches to the difficult 
problems which the Enc plan was designed to 
solve. 

The failure of Edo has raised doubt as to the 
validity of certain assumptions which have been 
at the very heart of the Atlantic security system. 
One such assumption is that the German Federal 
Republic will be associated with the family of free 
nations as a sovereign and equal partner and will 
make a material contribution to the common de- 
fense program. Another is that the nations of 
Western Europe will achieve a high degree of mili- 
tary, political, and economic unity among them- 
selves. 

Now the feasibility of the whole collective se- 
curity program must be reexamined. 

Most Americans have come to realize that it is 
no longer possible to turn back the clock and seek 
security through isolation. We also know that we 
cannot afford to gamble our safety and our surviv- 
al on arrangements and programs that have no 
reasonable prospect of providing genuine security. 

We are encouraged by the initiative taken by 
the Governments of the United Kingdom and 
France in developing new proposals. The United 
States believes that the primary responsibility for 
new proposals rests with the European States. 
Therefore, we take with us no specific proposals 
of our own. But we do go, to be helpful if we can. 



r>K.VK ilB. Gromyko: I have the honor to refer to the 
aide-memoire which you handed to me on September 22 
and to inform .vou that the United States Government is 
willing to publish all documents exchanged between the 
Governments of the Union of Soviet Socialist Republics 
and the United States of America regarding the proposal 
advanced by the President of the United States of America 
on December 8, 1953, with respect to the international 
use of atomic energy for peaceful purposes. 

Sincerely yours, 

Charles E. Bohlen 



Nine-Power Conference on 
European Security 

STATEMENT BY SECRETARY DULLES 

Press release 530 dated September 25 

I am now leaving to attend the nine-power con- 
fei-ence in London. It has been called to consider 



U.S. DELEGATION TO LONDON TALKS 

Press release 528 dated September 24 

Following is the U.S. delegation to accompany 
Secretary Dulles to the nine-power talks opening 
in London on September 28 : 

Assistant to Mr. Dulles 

lloderic L. O'Connor, Special Assistant to the Secretary 

Special advisers 

Winthrop W. Aldrich, Ambassador to Great Britain 

Robert U. Bowie, Director, Policy Planning Staff, Depart- 
ment of State 

David K. E. Bruce, U.S. Representative to European 
Coal and Steel Community 

James B. Conant, U.S. High Commissioner to Germany 

H. Struve Hensel, Assistant Secretary of Defense for 
International Security Affairs 

John C. Hughes, U.S. Permanent Representative on North 
Atlantic Council 

Carl W. McCardle, Assistant Secretary of State for Public 
Affairs 

Livingston T. Merchant, Assistant Secretary of State for 
European Affairs 



Ocfober 4, 1954 



489 



Press officer 

Henry Suydam, Chief, News Division, Department of State 

Advisers 

Col. Joseph C. Anderson, Deputy Chief, European Division, 
Ofl3ce of Foreign Military Affairs, Department of 
Defense 

Roger Ernst, Assistant for Plans and Coordination, Euro- 
pean Division, Office of Foreign Military Affairs, De- 
partment of Defense 

Russell Fessenden, Office of European Regional Affairs, 
Department of State 

Charles D. Hilles, Hicog Representative, Bonn Working 
Group, Bonn 

Coburn B. Kidd, Officer in Charge, German Political Af- 
fairs, Department of State 

Edwin M. Martin, Director, Office of Political Affairs, 
U.S. Mission to Nato and European Regional Organi- 
zations, Paris 

Ben T. Moore, Director, Office of European Regional Af- 
fairs, Department of State 

John M. Raymond, Assistant Legal Adviser for German 
Affairs, Department of State 

Jacques J. Reinstein, Special Assistant to Assistant Secre- 
tary for European Affairs, Department of State 

Col. Richard S. Silver. Military Assistant to Assistant 
Secretary Hensel, Department of Defense 

William R. Tyler, Deputy Director, Office of Western 
European Affairs, Department of State 

Coordinator 

Arthur C. Nagle, Executive Secretariat, Department of 
State 

Secretary of delegation 

Donald B. Eddy, Senior Conference Officer, Office of In- 
ternational Conferences, Department of State 



Anniversary of Death of 
Bulgarian Patriot 

Statement by Under Secretary Smith 

Press release 522 dated September 22 

Seven years ago tomorrow Nikola Petkov was 
hanged by the Bulgarian Communist Government 
because he dared to oppose it. As the leader of 
the opposition, Petkov waged a courageous 
struggle for representative government, justice, 
and human liberties, but his voice was silenced in 
the traditional Communist manner. Since his 
death the forces against wliich he fought have 
gained full control in Bulgaria. 

The Bulgarian Communist regime, by means of 
the judicial murder of Nikola Petkov, demon- 
strated once again its callous disregard for human 
rights and fundamental freedoms. It has con- 
tinued to conduct itself in this manner, thereby 
not only violating the provisions of the Treaty of 
Peace but also the dictates of justice and humanity. 

The American people and the other peoples in 
the free world have not forgotten Nikola Petkov. 



His self-sacrifice remains an inspiring example to 
free men everywhere. To the millions of op- 
pressed peoples behind the Iron Curtain Petkov 
is justly a symbol of determination that one day 
they will again have governments of their own 
choosing. 



First U.S. Flood Relief Cargo 
Leaves for Austria 

The first U.S. relief cargo for victims of this 
summer's Danube River floods was scheduled to 
leave for Austria about September 14, according 
to an FoA announcement of September 8. The 
cargo, consisting of some 9,500 tons of corn for 
livestock feed, was to be loaded on the Liberty ship 
Norcuba of the North Atlantic & Gulf Steamship 
Company at Philadelphia. The ship is expected 
to reach Trieste the first week in October, where 
the corn will be delivered to the Austrian Govern- 
ment for shipment by rail to Austria. 

This is the first shipment of 25,000 metric tons 
of corn, valued at $1.9 million, to be sent to Austria 
under President Eisenhower's offer of agricultural 
commodities for European flood victims. The 
remainder of the 25,000 tons will follow in the near 
future. Needs of the other countries named by 
President Eisenhower in the U.S. offer — the Fed- 
eral Republic of Germany, Yugoslavia, East 
Germany, Hungary, and Czechoslovakia — are 
being surveyed by local authorities, Red Cross 
officials, and U.S. representatives. 

After a survey of the flood areas, the Austrian 
Government found that corn was needed to help 
replace the feed grain and feed potatoes lost in 
the July floods. The 25,000 tons of corn not only 
will help Austrian farmers by fully replacing their 
feed crop losses but also will help to maintain the 
overall Austrian food supply at preflood levels. 

President Eisenhower authorized the use of the 
corn for Austria under the Agricultural Trade 
Development and Assistance Act of 1954. Title 
II of this act permits the President to grant sur- 
plus agricultural commodities from Commodity 
Credit Corporation stocks to friendly nations or 
populations in order to meet famine or other 
urgent relief requirements. 

The Austrian Government has agi-eed to provide 
transportation for the 25,000 tons of corn from 
Trieste to Austria and to distribute it on an 



490 



Department of State Bulletin 



equitable basis, according to crop losses and free of 
charge, to the flood victims. As specified by the 
U.S. legislation, the corn will be identified as a 
gift for tlie people of Austria from tiie people of 
the United States. 



Iranian Message of Sympathy 
Concerning Hurricane Damage 

White House Office press release dated September 10 

TJie White House on September JO vuule pub- 
lic the foUoimng exchange of cables between the 
President and the Shah of Iran. 

The President to the Shah 

Your Imperial SLvjestt: Your Imperial Ma- 
jesty's message of sympathy concerning the 
tragic loss of life and property which a hurricane 
recently inflicted on the northeastern coast of the 
United States has touched me deeply. It is fur- 
ther evidence of your humanitarian feelings 
which are so widely recognized. I appreciate 
your message and the spirit which inspired it, and 
I wish to take this occasion to assure you again 
of my admiration for the way you have led your 
nation through the difficulties of the past few 
years to the jiresent point where a future full of 
opportunity is opening before you and your 

people. 

DwiGHT D. Eisenhower 

The Shah to the President 

Mr. President : I was deeply distressed by the 
news of the tragic loss of life and property which 
the recent hurricane inflicted upon your nation. I 
would like to express to Your Excellency and to 
the noble people of the United States the heart- 
felt sympathy of myself and that of my people. 

Beza Shah Pahlavi 



Visit of President Tubman 

The Department of State announced on Sep- 
tember 21 (press release 519) that arrangements 
are being completed for the visit of William V. S. 
Tubman, President of Liberia, and his party, who 
will visit Washington in October at the invitation 
of President Eisenliower. In extending the in- 
vitation in April this year, the President recalled 



the traditional bonds of warm feeling which unite 
Liberia and (lie United States and emphasized 
the admiration of Americans for the achievements 
of Liberia and tlie role it plays in Africa. 

His Excellency will arrive at Washington on 
October 18. After a state visit of 3 days in Wash- 
ington, President Tubman expects to make an ex- 
tended tour of about 3 weeks through the United 
States, which will take him to Baltimore, Akron, 
Chicago, Detroit, Cleveland, New York, Atlanta, 
and New Orleans ; he will then depart for Haiti. 

Tlio President plans to visit various educational 
institutions, including Howard Universit}', Mor- 
gan State College, the University of Chicago, 
Lafayette College, Lincoln LTnivei-sity, Atlanta 
University, Tuskegee Institute, and Langston 
Univei-sity. 



U.S.-French Talks on Indochina 

Press release 529 dated September 25 

At the suggestion of the French Government, 
Guy La Chambre, Minister of State in Charge of 
Relations with the Associated States in the 
French Govermnent, and General Paul Ely, 
French Commissioner General in Indochina, are 
coming to Washington to participate in conversa- 
tions with officials of the U.S. Government which 
are expected to last from September 27 through 
September 29. 

M. La Chambre and General Ely will take 
advantage of the presence in Washington of 
French Finance Minister Edgar Faure, who has 
arrived to take part in meetings of the Boards of 
Directors of the International Monetary Fund 
and the International Bank for Reconstruction 
and Development. M. Faure will join M. La 
Chambre and General Ely in their conversations 
with the U.S. Government. 

These talks will be of an informal, exploratory 
nature and will concern matters primarily of 
mutual interest to the two Governments, par- 
ticularly the status of U.S. financial assistance 
for the French Union forces in Indochina. Con- 
versations will be held with high officials of the 
Departments of State and Defense and the For- 
eign Operations Administration. 

The Governments of Cambodia, Laos, and Viet- 
Nam have been informed through their represent- 
atives in Washington of the purpose of these 



Ocfober 4, 7954 



491 



talks and will continue to be kept informed. The 
means by which the U.S. Government can most 
effectively assist the three Associated States will 
be the subject of continuing consultations with 



their goveriunents. 



U.S.-Pakistan Friendship 

ty Horace A. Hildreth 
Amhassador to Pakistan'^ 

In Pakistan we have a young nation, seven years 
of age, born at a time of trouble and tunnoil and 
inheriting so many difficult problems that many 
people did not expect it to survive as long as it 
already has survived. Pakistan has by no means 
solved all of its pressing and difficult problems, 
but with the passage of even a few years, it has 
assumed a position of leadership in one of the 
troubled and uncertain areas of the world. 

Pakistan has definitely repudiated communism 
as being utterly unacceptable to the principles of 
the Moslem religion. . . . The Government of 
Pakistan has recently outlawed the Communist 
Party and imposed the same restrictions on the 
freedom of mobility of the Kussian diplomatic 
representatives in Pakistan that Russia has im- 
posed upon the freedom of mobility of the diplo- 
matic corps in Moscow. This does not mean, how- 
ever, that the Communists have given up their ef- 
forts in Pakistan. 

Having rejected communism largely on re- 
ligious grounds, Pakistan has definitely cast its 
lot with the West with a degree of courage and 
firmness that is heartening to the entire Western 
world. The leadership of Pakistan is devoted to 
sound Moslem principles and is willing and anx- 
ious to take full advantage of modern develop- 
ments that have occurred in the Western woi'ld in 
all walks of life. But most important of all, de- 
spite the vicissitudes facing Pakistan, their "will 
to do" never diminishes. In a world where too 
many peoples seem incapable of making up their 
minds, it is indeed heartening to see this young 
nation facing so many problems and forging 
ahead with determination, courage, and an honest 
appraisal of the facts of life. 



In addition to having cast its lot with the West, 
Pakistan is a firm friend of the United States, and 
the help that the United States has been able to 
give in the past and may be able to give in the 
future is not only appreciated but is helping to 
build a nation that is dedicated to the same prin- 
ciples for which the United States is woi'king 
throughout the world. 



Death of Japanese Fisherman 

Statement hy John M. Allison 
Anxbassador to Japan ^ 

I have just been informed of the death of Mr. 
Aikichi Kuboyama, member of the crew of the 
Fiikuryu Maru. I speak on behalf of the Gov- 
ernment and people of the United States in ex- 
pressing extreme sorrow and regret at this most 
unliappy event. My deepest sympathy is ex- 
tended especially to the family of the deceased. 



Shipments to Hong Kong 

Exporters now may ship more than 25 addi- 
tional commodities to Hong Kong without apply- 
ing for individual export licenses, the Bureau 
of Foreign Commerce, U.S. Department of Com- 
merce, announced on September 16. 

Items added to the list of nonstrategic commod- 
ities which may be exported under general license 
GHIv without prior application to tlie Bureau in- 
clude certain rubber gloves, boots and shoes ; naval 
stores; dried fruits; pharmaceuticals; photo- 
graphic, pi'ojection, and optical goods ; and dental 
office and laboratory equipment." 

A detailed list of these additional items is pub- 
lished in the Bureau's Current Export Bulletin 
No. 737, dated September 16. 



Correction 

BULLETix of September 27, 1954, p. 434 : In the 
text of the Bonn communique, the sixth line of the 
second paragraph should read "and the free world, 
should, in the view of the two." 



' Excerpts from an address made at the Fletcher School 
of Law and D-iplomacy, Medford, Mass., on Sept. 23 (press 
release .^.23 dated Sept. 22). 



" Issued at Tokyo on Sept. 23 (press release 524). 
"For an announcement of previous additions to the list, 
see Bulletin of Feb. 1. 10r)4. p. 157. 



492 



Depariment of State Bulletin 



U.S. Program for Return of Historic Objects 
to Countries of Origin, 1944-1954 



by Ardelia R. Hall 



The Department of State last month returned 
through the embassies at Washington important 
historic and artistic objects lost and displaced 
from their respective countries during World War 
II. The receiving govenmients, in turn, will ar- 
range for the restoration of the items to the former 
owners. The objects have been recovered in the 
United States under the Government's postwar 
program for the restitution of cultural property. 
The most valuable of these objects entered the 
United States through trade channels. 

All the objects returned at this time formerly 
belonged to state or municipal collections in 
Europe. They included Dutch archives of the 
Netherlands East Indies dating from 1767 to 1939 ; 
German archives of the 15th and 17th centuries, 
mainly from the town of Grebenstein in Hesse; 
English documents on parchment of the I7th cen- 
tury from London and Laxfield; a collection of 
250 ancient seals, gems, and other objects from the 
Staatliche Miinzsammlung (State Coin Collec- 
tion) at Munich ; 50 gold medals and coins from 
the historic collection of the Staatliche Kunst- 
sammlung (State Art Collection) in the Schloss- 
museum at Weimar; a banner from Aachen; a 
painting by the Dutch artist, Brekelenkam, from 
the Diisseldorf Kunstsammlung ; a rare Wiirzburg 
missal of 1495 from the Mainfrankisches Museum 
at Wiirzburg; and, most important of all, a 10th- 
century codex or bound manuscript containing one 
surviving page of the Hildebrandslied from the 
Lundesbibliothek (State Library) at Kassel and 
a 14th-centui7 codex of "De Africa" by Petrarch, 
from the Biblioteca Civica of Trieste. 

The Hildebrandslied (Song of Hildebrand) 
was an heroic poem in High German, written 



about the year 800 A. D. The two surviving pages 
owned by the Kassel Library are among the most 
valuable manuscripts of world literature. The text 
was copied on parchment by the monks of Fulda. 
For over a thousand years these two parchment 
pages have survived. They were bound with a 
10th-century manuscript on religious subjects, 
"Liber Sapientiae," where they were apparently 
reused as the end-pages of the later manuscript. 
The ancient poetry, written on the first page 
{recto) and the last page, or page 76 {verso), of 
the codex, is not only the oldest example of Ger- 
man poetry but also the oldest example of writing 
in the German language. 

Unfortunately the bound manuscript which has 
now been found contains only the second page of 
the Hildebrandslied. The first page (see cut) had 
been removed from the manuscript and is missing. 
All efPorts to trace the missing page have thus far 
been unsuccessful. It is, however, known that 
the first page was missing as early as November 
1945, when the bound manuscript came into the 
possession of a New York dealer. Its removal 
from the codex is probably the greatest single loss 
to literature resulting from World War II. 



Manuscript Collection at Kassel 

The library at Kassel lost all its books and 
printed materials in a bombing raid in September 
1941. The manuscript collection was believed to 
have been saved. However, at the end of tlie war, 
two of the manuscripts — the Hildebrandslied Co- 
dex and the Willehalm Codex (see cut)— tlie two 
chief possessions of the library, were found to liave 
been taken from the war repository. They had 



Ocfober 4, J 954 



493 



been packed together in a small box and stored for 
safety in a bunker at Bad Wildungen in August 
1943. The bunker was reported to have been 
carefully guarded until the last months of the war, 
when the custodians were displaced. The Ameri- 
can Monuments, Fine Arts, and Archives oiScers 
were not immediately informed, when Allied 
troops entered the town, of the repository and its 
importance. In June 1945 the State Conservator 
of Greater Hesse reported to the American Mili- 
tary Government that the bunker had been entered 
and the two famous manuscripts were missing. 
At the time it could not be ascertained whether the 
box with the manuscripts had been removed by 
German civilians, displaced persons, or American 
troops. 

The loss of these irreplaceable manuscripts be- 
came the subject of an extensive search in Ger- 
many. Dr. Theodore A. Heinrich, the American 
director of the Wiesbaden Central Collect- 
ing Point, made every effort to trace them. Now 
that the Hildebrandslied has been found in the 
United States, the United States Government will 
try to determine whether the missing page of the 
Hildebrandslied and the 14th-century Willehalm 
Manuscript were also brought to the United 
States. A description of the missing manu- 
scripts is being publicized so that American in- 
stitutions may be alerted to the loss. Should they 
be found in American jjossession, they may be 
turned over to the nearest public librai-y with the 
request that arrangements be made for their safe 
transfer to the Department of State at Washing- 
ton. 

Descriptions of these two treasures of the Kas- 
sel Library have been published many times. The 
Hildebrandslied is to be found described in many 
books ' and most encyclopedias, and the Willehalm 
manuscript is published in a large folio volume.^ 



The Song of Hildebrand 

The missing page of the Hildebrandslied con- 
sists of 24 lines of the poem, written in Irish minus- 
cule on parchment, 28.5 by 21 centimeters or 11 
inches by 814 inclies in size. There are three 
small holes in the right-hand margin and a large 
hole at the end of the last line. 

The Song of Hildebrand recounts the story of 
Hildebrand and his son, who after many years of 

Footnotes at end of article. 



separation meet and, without knowing each other, 
engage in combat. The poem breaks off with no 
indication of the outcome of the battle. There is 
an early Norse saga which refers to the Hilde- 
brandslied and says that the son was killed, but 
in the later sagas the son is defeated and forced 
to recognize his father. 

The two pages of the Hildebrandslied are the 
only surviving remnant of the many sagas and 
ballads of that early period. They were first kept 
in the cloister at Fulda and were presented to the 
Kassel Library early in the 19th century by Jacob 
and Wilhelm Grimm, who first recognized the 
manuscript as a unique example of German poetry. 
The Grimms were distinguished scholars of Kas- 
sel. Their research in poetry and popular tales 
became the foundation of the science of folklore, 
and their works have been read throughout the 
world. In 1814 Jacob Grimm was sent to Paris 
to obtain the restitution of the valuable collections 
of books that Napoleon had carried off from 
Kassel. 



The Willehalm Manuscript 

The lost Willehalm Codex of Wolfram von 
Eschenbach is a bound manuscript of the 14th cen- 
tury, containing 396 folios and 62 miniatures. 
Thirty-three of the miniatures are completed, and 
the rest are partly finished. The manuscript is 
41.5 by 29 centimeters or 161^4 inches by 11% inches 
in size. Tlie script is a fine, precise, pointed 
Gothic minuscule of a severe style. 

The poem by Wolfram von Eschenbach in the 
missing Willehalm Codex relates the heroic deeds 
of the Christian knight, Willehalm. In one of 
the miniatures illustrating Willehalm's adven- 
tures, the hero is kneeling before Charlemagne, 
and in another he is seated before Tybalt, Arabele, 
and the three queens. 

The illumination of the manuscript shows strong 
English influence and belongs to the Cologne 
school. The ornamental initial on the first page 
was executed with skill and versatility. Framed 
in a triple Gothic arch, Christ in Glory is be- 
stowing His blessing; the Evangelists' symbols 
are at the corners. Below, the donor of the book, 
tlie Landgrave of Hesse, kneels in prayer; beside 
him is his coat of arms with the lion of Hesse. 
This is the oldest Icnown colored representation of 
the arms, other than the 13th-century Landgrave 



494 



Department of State Bulletin 




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Another page of the manuscript lias been returned to the Landesbiblio- 
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^' t»C9!ftjgcltnrfjrnjtnwiorrno? ' 
,5 wo m mlrvri htvM .r^^^ 

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First page of the missing Willehalm mnniiscriiil. diitiiig from iliv lllh 
ciiiliiri/. The manuscript coiilnins :!!l(i folios, mani/ of lliini riclily 
illuminated. 



esctitcheons preserved in the Marburg Clunrh of 
St. Elizabeth. 

On the vine framing the page a monk is reading 
at a lectern, and there are charming, droll figures 
of rabbits and monkeys. The numuscript is dated 
by a Latin entry on folio 395 verso: "In the year 
of our Lord one thousand tluee hundred and 
thirty-four, the illustrious Prince Henry, Lund- 
grave and Lord of the Land of Hesse, had this 
written in honor of St. William Marchionis at his 
court ; never to be transferred but to remain for- 
ever in the possession of his heirs." 

The IJrth-century manuscript of "De Africa," 
a Latin poem by Petrarch, was fully identified by 
the library of the city of Trieste and also was 
marked with the stamps of the famous Petrarch 
collection owned by the library. The manuscript 
was sent on September 20, 1954, to the United 
States Political Adviser to the Commander Brit- 
ish-United States Zone, Free Territory of Trieste, 
to be restored to the municipal library on behalf 
of the United States Government. 



Traditional Principles Upheld 

The I'ccovery of these manuscripts and of other 
rare books and objects of art dispersed during or 
following "World War II has been a part of United 
States Goverimient policy. The protection of cul- 
tui\il property and respect for its ownership are 
based upon the traditional principles upheld by 
the United States Government. These principles 
were incorporated in the General Orders No. 100 
promulgated by President Lincoln and in all edi- 
tions of the Rules of Land Warfare of the De- 
partment of the Army. 

President Eisenliower, when he was Supreme 
Commander, Allied Powers Europe, during 
World War II, issued orders unrivaled in their 
firm expression of a determination to preserve the 
historic and cultural heritage of Europe. In a 
directive of May 26, 19-44,^ General Eisenhower 
stated : 

Shortly we will be fighting our way across the continent 
of Europe in battles designed to preserve our civilization. 
Inevitably, in the path of our advance will be found his- 
torical monuments and cultural centers which symbolize 
to the world all that we are fighting to preserve. 

It is the responsibility of every commander to protect 
and respect these symbols whenever possible. 

A subsequent directive of November 9, 1944,^ an- 
nounced the policy of cultural restitution : 



It is the policy of the Supreme Commander to take 
measures to facilitate the eventual restitution of works 
of art and ol)jects of scientific or historical imiwrtance 
which may have been loutod from United Nations govern- 
ments or nationals. . . . 

It is also the policy of the Supreme Commander to 
avoid, as far as military necessity will permit, damage to 
all structures, objects or documents of cultural, artistic, 
archaeological, or historical value ; and to assist wher- 
ever practicable in securing them from deterioration upon 
the process of war. . . . 

You will ensure that the prevention of looting, wanton 
damage and sacrilege of l)uildings by troops Is the respon- 
sibility of all commanders and you will ensure that the 
seriousness of offenses of this kind is explained to all 
Allied personnel. 

After the extent of the Nazi confiscations had 
become known, the Allied Powers issued a solemn 
warning in the London Declaration of January 
5, 1943,^ that they intended "to do their utmost to 
defeat the methods of dispossession practiced by 
the governments with which they are at war 
against the countries and peoples who have been 
so wantonly assaulted and despoiled." The Al- 
lied Powers reserved all rights to declare invalid 
such transfers of property. It was specifically 
stated that works of art were included. Concerted 
efforts to rectify the injustices were sought at in- 
ternational conferences ^ and through inter-Allied 
agreements.' 

The Allied war agencies concerned with the 
protection of the international cultural heritage 
had long but informative names. In the United 
States the American Commission for the Protec- 
tion and Salvage of Artistic and Historic Monu- 
ments in War Areas was established on August 
20, 1943, under Supreme Court Justice Owen J. 
Roberts and David E. Finley, Director of the 
National Gallery of Art. The British Committee 
on the Preservation and Restitution of Works of 
Art, Archives and other Material in Enemy Hands 
was set up by Prime Minister Churchill on May 
9, 1944. 



Objects Appearing in U.S. 

The problem of looted and displaced works of 
art appearing in the United States was first 
brought to the attention of the American Com- 
mission in September 1944 on behalf of Cardinal 
Spellman, who was one of the members of the 
American Commission.* 

Following World War II, the State-War-Navy 



Ocfober 4, 1954 



495 



Coordinating Committee approved a government 
policy,^ which states : 

The introduction of looted objects of art into this coun- 
try is contrary to the general policy of the United States 
and to the commitments of the United States under the 
Hague Convention of 1907 and in the case of objects of a 
value of $5,000 or more is a contravention of Federal law. 
It is incumbent on this Government, therefore, to exert 
every reasonable effort to right such wrongs as may be 
brought to light. 

The effective protection of works of art begun 
under General Eisenhower's directives, carried out 
by the Allied armies and military governments, 
and completed by the Allied High Commissioners 
in Austria and Germany prevented the dispersal 
of hundreds of thousands of objects and greatly 
minimized the problem of recovery. The number 
of dispersed objects of cultural importance which 
have been found in the United States is relatively 
small compared with the millions of objects of 
art, books, and archives from over 2,000 reposi- 
tories which were taken into the custody of the 
U.S. Military Government in the American Zone 
of Germany alone.^" 

A review of the works of art and other objects 
of cultural value which have been recovered in the 
United States in the 10-year period since the pro- 
gram was initiated in September 1944 shows that 
between 1944 and 1954 a total of 66 cases involving 
1,586 objects have been brought to the attention 
of the Department of State. Of this total, 40 cases 
have been concluded and 1,194 objects recovered 
and transferred through diplomatic channels to 
the rightful owners." In the 11 cases completed 
in September, 360 objects were transferred to the 
embassies in Washington. There are 15 cases cur- 
rently under investigation involving 32 objects 
and 2 collections. AVlien these are completed, all 
missing objects which are known to have appeared 
in the United States and have come to the atten- 
tion of the Government will have been recovered. 
The success of the recovery program is due to 
the generous response of American educational 
and cultural institutions and to the unfailing su])- 
port of the Government agencies in Washington. 
The Bureau of Customs of the Treasury Depart- 
ment has been most efficient in handling cases in- 
volving violations of United States customs laws. 
Shirley Stephens, the head of enforcement in the 
Bureau of Customs, has been directly responsible 
for the continued effectiveness of the program. 
Mr. Stephens was consulted by the American Com- 



496 



mission in 1944, when the matter was first under 
consideration, and he has taken a direct part in 
every case that has been under investigation by 
the Bureau of Customs since that date. 

The advice and assistance of officers of the De- 
partment of Justice, including Julian D. Simpson, 
Harold P. Shapiro, and John ISIurphy, have been 
invaluable to the solution of the most difficult 

cases. 

Special acknowledgment should also be made to 
Mr. Finley, Director of the National Gallery, for 
his contribution to the work of the American Com- 
mission and for his cooperation with the Depart- 
ment of State in taking temporal^ custody of the 
objects when they are received in Washington. 

The following American institutions are among 
the many that have also given invaluable assistance 
and expert advice about the objects: the Smith- 
sonian Institution, the Library of Congress, the 
Freer Gallery of Art, the National Gallery of Art, 
the Los Angeles County Museum, the University 
of Florida, the Art Institute of Chicago, the John 
Herron Art Institute of Indianapolis, the Museum 
of Fine Arts of Boston, the Fogg Museum of Art 
and theBusch-Reisinger Museum of Harvard Uni- 
versity, the Detroit Institute of Arts, the Palace 
of the Legion of Honor Museum of San Francisco, 
the Duluth (Minnesota) Public Library, the Co- 
lumbus (Ohio) Public Library, the Princeton Uni- 
versity Library, the New York Public Library, 
the Frick Art Reference Library, the Morgan Li- 
brary, the Cornell University Library, the Syra- 
cuse University Library, the Numismatic Society 
of New York, the Institute of Fine Arts of New 
York University, the Frick Collection, the New 
York Historical Society, the University of Pemi- 
sylvania Library, the Philadelphia Museum of 
Art, the Rhode Island School of Design, the Mu- 
seuni of Williams College, the Museum of Houston 

(Texas) , and Lawrence College. 



Response to Recovery Program 

Directors of these institutions have made the 
following connucnts upon the Govermnent pro- 
gram : 

This museum lias been instrumental in uncovering sev- 
eral items l)elonginK to European museums during the 
past 3 years. We are most anxious to cooperate with the 
return of Uicso objects, as part of the reciprocal activities 
of the major museums. . . . 



Department of Sfofe Bulletin 



I am kIuJ to sec from your letter iiud the statements 
attaehed to It (on return of looted objects] that the atti- 
tude of the Covernment is exiictly as we felt it would 
be. . . . 

I very much hi>iH> that you will lie ahle to receive the 
objects and return them to the institutions from whidi 
they were mistakenly taken. In conclusion, let me applaud 
the effort which you are niakinj; to ri^ht this kind of 
wrong. . . . 

I am dolishted that macliinery has been set up whereby 
this kind of property can be restored to its rightful own- 
ers. Such conduct makes me proud to be an American 
citizen. . . . 

Tlie nieiubership of tlie College Art Association 
of Ainericii empowered its executive committee 
to e.\pre.ss ajiproval of the Government's eli'orts 
in behalf of the restitution to rightful ownei-s of 
works of art, which was described as '"a cultural 
enterprise without historical precedent." 

When the objects have been transferred to the 
recipient governments, the return has brought 
many expressions of gratitude. The French 
Government, on the recoverj^ of a painting looted 
in Paris from a famous Jewish collection in 1941, 
expressed its appreciation to the Department of 
State and also sent a letter of thanks to the 
museum whicli had assisted in the return. 

The director of the Berlin Hauptarchiv, when 
he heard that a rare manuscript had been re- 
covered, wi'ote, "Seldom has a letter caused so 
much joy as yours of the 24th of June concerning 
the return of the Testament of Frederick the 
Great. For your verj^ good news we beg to ex- 
press our sincerest thanks." On the occasion of 
the formal opening of the Johannes Gutenberg 
Celebration at Mainz, Germany, on June 24, 1950, 
the Mayor of Mainz spoke of the appreciation of 
his city for the efforts of the United States Gov- 
ernment in returning the 500-year-old Mainz 
Psalter to Germany and in consenting to the ex- 
hibition of the famous and precious book in 
Mainz for the duration of the commemoration. 
An official of the German Foreign Office at a 
ceremony marking the return of several works 
of art said, "It is with the greatest satisfaction and 
sincere gratitude that I accept on behalf of the 
Federal Government these treasures which are 
returned to us as former German properties. They 
will be given to their legitimate owners or their 
successors as soon as possible. "We all have had 
the very satisfactory experience during and after 
the war that there are men of good will in every 



country on earth, who — unaffected by tlie passions 
of the moment — strive toward the realization of 
higher ideals and toward justice." 

Italian Govermnent oilicials have expressed 
their gratitude for the assistance of the United 
States authorities in the recovery of works of art. 
In the case of the restitution to the Biblioteca 
Civica of Trieste of the 14th century Petrarch 
manuscript, the Italian Ambassador expressed 
"his warmest gratitude and deep appreciation of 
the assistance olfered by the American authorities 
in the recover}' of the masterpiece." 

A Polish representative, on receiving two paint- 
ings belonging to the State Collection at Warsaw, 
wrote, "May I express to you my sincerest 
thanks for your kind cooperation and help in the 
recovery of the paintings by Cornclis van Poelen- 
burgh and Quiryn Gerrits van Brekelenkam." 

Most of the historic and artistic objects which 
have been recovered in the United States were 
lost from state museums, libraries, or archives 
or from churches. All of the relatively few works 
of art of private ownership which have appeared 
were confiscated by the Nazis from Jewish collec- 
tors, who were the chief victims of Nazi plunder- 
ing in Western Europe. 

By the restoration of these looted objects to 
their former Jewish owners, a grievous wrong has 
been righted. And by returning the dispersed 
objects which had passed from public collections 
in Europe to private hands in the United States, 
the U.S. Government has performed a great public 
service. It is a service not only to the nations 
which have regained precious symbols of their 
cultural heritage but also to all lovers of art and 
literature, who will find these valuable objects 
once more available to the public. 

Footnotes 

1. Gnilelmus Grimm, /)cHt;f7f6»a?i<fo (Gottingao, 1830) : 
Wilhelni Hopf, Die Lnndesbibliothek Kassel, 1580-1930 
(Marburg, 1930), pp. 31, 32; Das BildebrandsUcd (Kas- 
sel, 1937) etc. 

2. Robert Freyham, Die Illustrationen zum Casseler 
Willehalm Codex; Wilhelm Hopf, loc. cit., pp. 99-102. 

3. Report of the American Commission for the Protection 
and Salvage of Artistic and Historic Monuments in War 
Areas, 19J,6 (Washington, 194C), p. 102. 

4. The Museum News, Jan. 1, 194.'5. 

.'■>. Buu-ETIN of Jan. 9, 1943, p. 21; United States Eco- 
nomic Policy Toirard Germany, Department of State pub- 
lication 2C30, p. 52. 

6. United yations Monetary and Financial Conference, 
Department of State publication 2187; Inter-American 



October 4, 1954 



497 



Conference on Problems of MVar and Peace. Department 
of State publication 2497. 

7. Bulletin- of Aug. 27, 19.51, Appendix 1, p. 340. 

S. Report of the American Conuiiission . . ., p. 2.3. 

9. Bulletin of Feb. 23, 1947, p. 3.58. 

10. Articles published in the Information Bulletin of 
the Office of U.S. High Commissioner for Germany dealing 
with the restitution of art in the U.S. Zone of Germany 
include : 

"Recovery and Protection of Art Treasures," Aug. 4, 1935; 

"Back from the Salt Mines," Nov. 3, 194.5 ; 

"Operation 'Lost and Found,' " July 1, 1946; 

"Restitution Program Revieiced," Oct. 28, 1946; 

"Restitution." March 3, 1947: 

"Silver Train to Hungary," May 26, 1947; 

"Oermany Makes Restitution," June 1950. 

11. Articles dealing with the recovery of war-dispersed 
art in the United States include : 



"Rare Mainz Psalter of 1457, Looted, Returned to U.S. 

Zone in Germany," Bltlletix of Mar. 27. 19.50, p. 487: 
"Mainz Psalter Returned," Information Bulletin, June 

1950. 
"Mainz Exhibiting Treasured Psalter," Bulletin of Aug. 

28, 1950, p. 349. 
"Recovery of Lost European Treasures," Department of 

State Record, May-June 1951, p. 39. 
"The Recovery of Cultural Objects Dispersed During 

World War II." Blxletin of Aug. 27, 1951, p. 337. 
"Cultural Articles Returned," Information Bulletin, July 

1952. 
"Royal Treasures Returned to Ryukyu Islands," Bulletin 

of June 8, 1953, p. 819. 



• Miss HaN, author of the above article, is Arts 
and Monuments Adviser, Department of State. 



Administration of Agricultural Trade Development and 
Assistance Act of 1954 



White House Office press release dated September 9 
WHITE HOUSE ANNOUNCEMENT 

The President on September 9 issued an Execu- 
tive order providing for tlie administration of the 
Agricultural Trade Development and Assistance 
Act of 1954. 

Under that act agricultural surplus commodi- 
ties, aggregating $700 million in value, may be sold 
abroad for local currencies over a period of 3 years, 
and such commodities, up to $300 million in value, 
may be given to friendly peoples in the event of 
national disaster or famine. 

The Executive order assigns to the Secretary of 
Agriculture primary responsibility for sales under 
the act, including the development of overseas 
markets for agricultural commodities, and assigns 
primary responsibility for the grants for famine 
relief to the Director of the Foreign Operations 
Administration. 

A number of other Federal agencies will par- 
ticipate in the administration of these activities. 
In order that their activities may be properly 
coordinated, the President has established an in- 



teragency advisory committee which will be 
headed by a representative of the White House 
Office. 

The Executive order provides that the local cur- 
rency proceeds of overseas sales of agricultural 
commodities under the act shall be held in the 
custody of the Treasury Department and shall be 
released by the Director of the Bureau of the 
Budget for use in connection with the purposes 
authorized by the act. Those purposes are: (1) 
the development of new markets for United States 
agricultural commodities; (2) the acquisition of 
strategic and critical materials; (3) the procure- 
ment of military equipment, materials, and facili- 
ties; (4) the purchase of goods or services for 
other friendly countries; (5) the promotion of 
balanced economic development and trade among 
nations; (6) the payment of U.S. obligations 
abroad; (7) the promotion of multilateral trade 
and economic development; and (8) international 
educational exchange activities. 

The Agricultural Trade Development and 
Assistance Act of 1954 provides a supplementary 
means of dealing with existing stocks of agricul- 
tural products with primary emphasis upon the 



498 



Department of Sfafe Bulletin 



objective of reducing surplus crops through over- 
seas marketing. Tlie statute provides that private 
tr:i(U> channels shall be used to the inaxiinuni ex- 
tent possible, that marketings under tlie act shall 
not interfere with usual U.S. marketings or dis- 
rupt world prices, and that activities under the 
act shall be carried on so as to further U.S. 
objectives abroad. 

In his message to the Congress in January of 
this year on the subject of agriculture ' the Presi- 
dent stated that our food stocks can be used for 
constructive purposes that will benefit the people 
of the United States and our friends abroad. 
With effective administration, mobilizing the total 
resources of Government and private channels, 
substantial strides will be made in achieving this 
goal. 

The President, in connection with the Executive 
order, issued an important policy statement con- 
cerning foreign trade as related to agriculture. 
The statement, representing the work of an inter- 
departmental committee under the chairmanship 
of Clarence Francis, special consultant to the 
President, was approved by the President on 
September 9. 



TEXT OF POLICY STATEMENT 

The general foreign economic and trade policy 
set forth in the President's message to Congress 
of March 30, 1954,- is applicable to and in the 
general interest of American agriculture. United 
States farm programs, both short-run and long- 
run, should be consistent with this policy. 

United States agriculture, as well as other seg- 
ments of the economy, stands to gain from such a 
sustained policy of expanding world trade, based 
upon the most productive use in each country of 
the available labor, natural resources, and capital. 
Therefore, it is in the long-run interest of the 
American farmer, as well as all Americans, for 
this comitry to work with other nations in a mutual 
effort to expand international trade, and to pro- 
mote the fuller convertibility of currencies, the 
freer movement of investment capital, and the in- 
terchange of technical and scientific information. 

Today, the United States agricultural situation 
is complicated by two factors on the domestic 

" H. Doc. 292, 83d Cong., 2d sess., transmitted Jan. 11, 
1954. 
* Bulletin of Apr. 19, 1954, p. 602. 



front : ( 1 ) prices of many farm products are not 
competitive with world prices; and (2) produc- 
tion of certain farm protlucts is badly out of bal- 
ance with demand, thus creating rapiilly mount ing 
surplus stocks which overhang and tend to un.settle 
both domestic and foreign nuirkets. Both of these 
factors promise to remain operative for some time. 
It therefore becomes necessary to reckon with them 
in any formulation of an agricultural foreign 
trade policy for the United States. 

Consistent with the principles set foi-th in the 
President's message of March 30, 1954, it is essen- 
tial that our agricultural foreign trade policy 
take into account the position of other countries 
and that our policy be understood by them. 

Today, the magnitude of the U.S. holdings of 
many commodities is such as to be capable of 
demoralizing world commodity markets should a 
policy of reckless selling abroad be pursued. This 
potential greatly alarms other countries despite 
the fact that past behavior of the United States 
has shown no intention of pursuing a harmful 
policy. 

At the same time, the United States cannot ac- 
cept the role of limiting its sales in world markets 
until other countries have disposed of their pro- 
duction. The adjustment of world supply to 
world demand will require adjustments of pro- 
duction in other countries, as well as the United 
States. 

The capacity of certain areas of the world to 
produce food and fiber in excess of current market 
takings presents a basis and a hope for improving 
living standards around the world — provided 
ways can be found for improving marketing and 
distribution systems and enlarging the purchasing 
power of consumers. This represents a challenge 
to the nations of the world to develop sound means 
for utilizing their productive capacity in the im- 
provement of living standards. 

1. The world supply and demand situation in 
agricultural products requires, in the interest of 
the general welfare, an orderly and gradual liqui- 
dation of our surpluses. Such a polic}', arrived 
at with the full knowledge of friendly nations, 
would go far to eliminate fear arising from 
uncertainty. 

2. The United States cannot be satisfied with 
the position of holding its own supplies off the 
market and accumulating surpluses while other 
countries dispose of their entire production. Ac- 



October 4, 7954 



499 



cordingly, the United States will oifer its products 
at competitive prices. At the same time, the 
United States will not use its agricultural sur- 
pluses to impair the traditional competitive posi- 
tion of friendly countries by disrupting world 
prices of agricultural commodities. 

3. The United States will seek in cooperation 
with friendly coimtries to utilize its agricultural 
surpluses to increase consumption in those areas 
where there is demonstrable imderconsumption 
and where practical opportunities for increased 
consumption exist or can be developed in a con- 
structive manner. The United States will attempt 
to utilize such opportunities in a manner designed 
to stimulate economic development in friendly 
countries and to strengthen their security position. 

4. The United States recognizes that the move- 
ment of goods in foreign trade is dependent upon 
the enterprise of private business — foreign and 
domestic. In implementing these policies with 
respect to agricultural commodities, the U. S. 
Government will seek to assure conditions of com- 
merce permitting the private trader to function 
effectively. 

LETTER FROM THE PRESIDENT TO 
CLARENCE FRANCIS 

Dear Mr. Francis : The Executive order which 
I have issued today establishing administrative 
arrangements for the Agricultural Trade Develop- 
ment and Assistance Act of 1954 provides, as you 
know, for an Interagency Committee on Agricul- 
tural Surplus Disposal with a representative of 
the Wliite House Office as Chairman. 

I request you to assume responsibility for or- 
ganizing this Committee and to serve as its Chair- 
man. I shall look to you for advice concerning 
policy issues that may develop. 

In connection with the work of your Committee 
I shall expect you to be guided by the policy state- 
ment concerning foreign trade as related to agri- 
culture which I have approved and issued today. 
I regard this document as an important announce- 
ment of the philosophy of this Administration 
with respect to agricultural foreign economic 
policy. It should generate confidence both at 
home and abroad as to our purposes in this vital 
area of international economic relations. 

With best wishes, 
Sincerely, 

DwiGHT D. Eisenhower 



LETTER FROM THE PRESIDENT TO 
AGENCY HEADS' 

I have today issued an Executive order provid- 
ing for the administration of the Agricultural 
Trade Development and Assistance Act of 1954. 
It is the purpose of this letter to further define 
relationships among the several agencies of the 
executive branch which will have key responsi- 
bilities in assuring successful administration of 
this progi'am. 

The act provides for the use of surplus com- 
modities to further many of our existing domestic 
and foreign programs, and in some instances, it 
expands or liberalizes them. Tliese programs are 
currently carried on by many agencies of the Gov- 
ernment. Accordingly, it is desirable to place the 
administration of the new act in those agencies and 
to make it possible for them to make their proper 
contribution in connection with the disposition of 
agricultural surpluses. 

The very fact that a number of agencies have a 
responsibility in one or another aspect of surplus . 
disposition makes effective coordination absolutely 
essential. It is therefore directed that a conunit- 
tee, to be known as "The Interagency Committee 
on Agricultural Surplus Disposal," be established 
to assist the agencies concerned in bringing into 
harmonious action, consistent with the over-all 
policy objectives of this Government, the various 
agricultural surplus disposal activities vested in 
them by, or assigned to them pursuant to, the Act. 
The Committee should be composed of a repre- 
sentative of the White House Office, as chairman, 
and one representative of each Government depart- 
ment and agency which is, consonant with law, 
designated by the Chairman to have representa- 
tion on the conmiittee. I shall look to the Chair- 
man to advise me concerning policy issues which 
arise. I shall expect the Secretary of Agricultin-e 
to assure the effective coordination of day-to-day 
operations through appropriate interagency rela- 
tionships. 

The following arrangements are prescribed in 

' Sent on Sept. 9 to the following : the Secretary of 
Agriculture, the Director of the Foreign Operations Ad- 
ministration, the Secretary of State, the Secretary of 
Defense, the Secretary of Commerce, the Director of the 
Bureau of the Budget, the Secretary of the Treasury, 
Clarence Francis, Special Consultant to the President, the 
Director of the Office of Defense Slobilization, the Ad- 
ministrator of General Services, and the t'hairman of the 
Board of Governors of the Federal Reserve System. 



500 



DeparfmenI of State Bulletin 



Older to facilitate the best administration of the 
Act: 

1. Existing jiert incut intorajiency coordination 
arraiisjenients are to be followed. 

2. This progi'ani must be carried out in accord- 
ance with and in furtherance of our forei<;n policy 
objectives. I wish to reemphasize that tne Secre- 
tary of State is the officer responsible for advising 
and assistinji me in the foiniulation and control of 
foreifrn policy. I look to him as the channel of 
authority within tlie executive branch on foreign 
policy as I do to the Secretaries of Defense and 
Treasury in their respective fields. 

3. The delegation to the State Dei)artnient of 
responsibility for negotiations with foreign gov- 
ernments is intended to give recognition to State 
Department's central responsibility in this area. 
Other agencies directly concerned with the sub- 
stance of the negotiation, however, must continue 
to carry substantial responsibility in such negotia- 
tions. Moreover, it is assumed that these other 
agencies will conduct day-to-day discussions with 
representatives of the foreign governments in im- 
plementing basic agreements reached with such 
governments. Such discussions, of course, must be 
in conformance with tlie foreign policy responsi- 
bilities of the State Department and the chiefs of 
our diplomatic missions. 

4. It is imperative that we continue to coordi- 
nate United States programs affecting other na- 
tions. For this reason, the accompanying Execu- 
tive order makes this program subject to my 
previous instructions with respect to coordination 
of T'uited States activities in foreign countries. 
Under those instructions, the chief of the diplo- 
matic mission is the principal officer of the United 
States in each country and has full responsibility 
and authority for assuring effective action in that 
country. 

5. In order to coordinate most effectively the 
various agricultural surplus disposal programs 
abroad, I shall expect the Secretary of Agricul- 
ture to utilize to the maximum extent practicable 
the facilities, services and experience of the For- 
eign Operations Administration. 

6. I am requesting the Secretary of Commerce 
to provide the focal point in the Government for 
assisting private enterprise with respect to barter 
transactions referred to in the act. This arrange- 
ment would be one more step toward assuring the 
maximum utilization of private channels in the 
execution of tliis program. 

7. It is contemplated that the Office of Defense 
Mobilization shall utilize the facilities and services 
of the General Services Administration for the 
purchase and handling of materials under section 
104(b) of the act. 

In January of this year, I stated in my message 
on Agriculture that surplus agricultural stocks can 
be used for constructive purposes that will benefit 



the people of the United States and our friends 
abroad. Enactment of this legislation is a major 
steji forward in achieving that broad objective. 
With effective administration, mobilizing the total 
resources of Government and private channels of 
trade, we shouhl make substantial strides towards 
aciiieving the above goals. 

I have forwarded an identical letter to the other 
officers of the Government jjrincipally concerned 
with carrying out the Executive order. 
Sincerely, 

DwaoHT D. EISE^•H0^v?:R 



EXECUTIVE ORDER 10560 < 

ADMIXISTUATION OF TIIP: AGRICULTUKAI. TRADE 
DEVELOPMENT AND ASSISTANCE ACT OF 1954 

By virtue of the authority vested in me by section 301 
of title 3 of the United State.s Code (6.1 Stat. 71."?) and 
as President of the I'nited .States, it is ordered as follows : 

Section 1. Department of Agriculture. Except as other- 
wise provided in this order, the functions conferred upon 
the President by Title I of the Agricultural Trade iH'vt'lui)- 
nient and Assistance Act of 1954 are hereby delegated to 
the Secretary of Agriculture. 

Section 2. Foreign Operations Administration. The 
functions conferred upon the President by Title II of the 
Act are hereby delegated to the Director of the Foreign 
Operations Administration. 

Section 3. Department of State, (a) The functions of 
negotiating and entering into agreements with friendly 
nations or organizations of friendly nations conferred 
upon the President by the Act are hereby delegated to the 
Secretary of State. 

(b) All functions under the Act, however vested, dele- 
gated, or assigned, shall be subject to the responsibilities 
of the Secretary of State with respect to the foreign policy 
of the United States as such policy relates to the said 
functions. 

(e) The provisions of Part III of Executive Order No. 
1047G of August 1, 19.53 (18 F. R. 4537, ff.)," are hereby 
extended and made applicable to functions provided for in 
the Act and to United States agencies and personnel con- 
cerned with the administration abroad of the said func- 
tions. 

Section 4. Foreign eurrencies. (a) There are hereby 
deleg.Ttcd to the Director of the Bureau of tl^e Budget (1) 
so much of the functions conferred upon the President 
by the Act as consists of fixing from time to time the 
amounts of foreign currencies which accrue under Title I 
of the Act to be used for each of the several purposes de- 
scribed in paragraphs (a) to (h). inclusive, of section 104 
of the Act, and (2) the function conferred upon the Presi- 
dent by the last proviso in section 104 of the Act of waiv- 



• 19 Fed. Reg. 5927. 

' Bulletin of Aug. 24, 1953, p. 240. 



Ocfofaer 4, 7954 



501 



ing the applicability of section 1415 of the Supplemental 
Appioiiriation Act, 1953. 

( 1) ) The Secretary of the Treasury is hereby authorized 
to prescribe regulations governing the purchase, custody, 
deposit, transfer, and sale of foreign currencies received 
under the Act. 

(e) The foregoing provisions of this section shall not 
limit section 3 of this order and the foregoing subsection 
(h) shall not limit subsection (a) above. 

(d) Purposes described in the lettered paragraphs of 
section 104 of the Act shall be carried out, with foreign 
currencies made available pursuant to section 4 ( a ) of this 
order, as follows : 

(1) Those under section 104 (a) of the Act by the 
Department of Agriculture. 

(2) Those under section 104 (1)) of the Act by the 
Office of Defense Mobilization. The function, conferred 
upon the President by that section, of determining from 
time to time materials to be purchased or contracted for 
for a supplemental stockpile is hereby delegated to the 
Director of the Office of Defen.se Mobilization. 

(3) Those under section 104 (c) of the Act by the 
Department of Defense. 

(4) Those under sections 104 (d), (e), and (g) of the 
Act by the Foreign Operations Administration. The 



function, conferred upon the President by section 104 (g) 
of the Act, of determining the manner in which the loans 
provided for in the said section 104 (g) shall be made, 
is hereby delegated to the Director of the Foreign 
Operations Administration. 

(5) Those under section 104 (f) of the Act by the 
respective agencies of the Government having authority 
to pay United States obligations abroad. 

(6) Those under section 104 (h) of the Act by the 
Department of State. 

Section 5. Reports to Congress. The functions under 
section 108 of the Act, with resi)ect to making reports to 
Congress, are reserved to the President. 

Section 6. Definition. As used in this order the term 
"the Act" means the Agricultural Trade Development and 
Assistance Act of 1954 (Public Law 480, approved July 10, 
1954, 68 Stat. 454) and includes, except as may be in- 
appropriate, the provisions thereof amending other laws. 



X^ Cj-s-^- fc-/^0'C<-<-u,. A.rt<*.^ 



The White House, 
September 9, 195.'i. 



Sweden Removes Import License 
Requirements on Some Items 

Press release 533 dated September 25 

The following joint state?}ient of the Depart- 
ments of Commerce and State was released on 
September 25 : 

The U.S. Government notes ■with satisfaction 
the Swedish Government's decision to liberalize 
its dollar trade effective October 1, by removing 
import license requirements from a large number 
of commodities which until now have been subject 
to tight licensing and foreign exchange control. 
This free list covers about 45 percent of total 
Swedish imports in 1953. 

Simultaneously, the Swedish Government an- 
nounced that goods which are not on this free list 
but are free-listed for Western European and 
certain otlier countries (Oeec' free list) will be 
imported from the dollar area in greater tjuan- 
tities, either directly from the dollar area or in- 
directly from those non-dollar areas. The Swedish 
Government also announced that it M-ill continue 



' Organization for European Econ(miic Cooperation. 
502 



to investigate the possibility of adding other items 
to the dollar free list. 

While all details are not yet available, it is un- 
derstood that the dollar free list is composed of 
raw materials, semimanufactures, and a large 
number of finished goods. Included in the list 
among other items are almost all chemical prod- 
ucts, all hides and skins, rubber products, wood 
goods, all paper other than newsprint, textile raw 
materials, yarn, cord fabrics, shoes, hats, and stone, 
clay, and glass products of various kinds. 

Extensive free-listing is also applicable to en- 
gineering products. All manufactures of iron and 
metal, the greater part of iron and steel products, 
and all machines, apparatus, and instruments, 
with the exception of cameras, projectors, and 
musical instruments, are free-listed. Also in- 
cluded are equipment for railways, streetcars, mo- 
torcycles, and bicycles. In the field of foodstuflfs, 
imports are free-listed among otliers for dried 
fruits and raisins, rice, canned fish and canned 
fruits, juices, and a number of other products. 
Finally, the list includes raw materials for plas- 
tics and a large number of products of less im- 
portance such as small boxes, handbags, fishing 
tackle, tobacco pipes, fountain pens, and many 

Department of State Bulletin 



otlier consumer goods. It is important to note 
that the free list inehides a preat majority of tlie 
commodities on wliich Sweden granted tariff con- 
cessions to the United States under the (Jcneral 
Agieement on Tariffs and Trade. 

Sucli details as are now available can be ob- 
tained from the European Division, Bureau of 
Foreign Commerce, Department of Commerce, 
"Washington '2o, D. C, and from all field offices of 
the Department of Commerce, wliich will also liave 
the information on additional details to be released 
later bv the Swedish Government. 

In announcing these actions, the Swedish Gov- 



ernment referred to the discussions which have 
lately taken i)lace in Western Europe on the prob- 
lem of attaining a more general system of cur- 
rency convertibility. Sweden thus joins a number 
of other Western European countries in efforts to 
improve productivity and reduce costs and prices 
by increased competition. This voluntary action 
by the Swedish Government is commendable not 
only as an aid to expanded dollar trade with Eu- 
rope, which the United States Govermnent values 
highly, but also as another example of construc- 
tive policy by countries whose financial positions 
permit measures in the direction of freer trade. 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings > 

Adjourned During September 1954 

XXVII Art Biennale 

XV International Exhibition of Cinematographic Art 

UNESCO International Seminar on Adult Education in Rural Areas . 

U.N. Committee on Information from Non-Self-Governing Terri- 
tories: 5th Session. 

8th Edinburgh Film Festival 

International Scientific Radio Union: 11th General Assembly . . 

Congress of the Life-Saving Federation 

Wmo Executive Committee: 5th Session 

Interparliamentary Union: 43d Conference 

UNESCO Regional Seminar on the Arts and Crafts in General 
Education and Community Life. 

U.N. World Conference on Population 

International Mathematical Union: 2d General Assembly .... 

International Elect rot echnical Commission: 50th.\miiversarv Meeting . 

International Society of Cell Biology: 8th International Congress . 

Fao Third Regional Meeting on Food and .Agricultural Programs 
and Outlook in Latin .\merica. 

First International Congress and Second International Seminar 
on Vocational Guidance. 

10th International Congress of Mathematicians 

Southeast Asia Collective Defense Conference 

International Sugar Council: Executive Committee Meeting . . . 

IcAO Legal Committee: 10th Session 

International Sugar Council: Statistical Committee Meeting . . 

International Sugar Council: 1st Meeting of 2d Session 

Itu International Radio Consultative Committee (Ccir) : Study 
Group IX 

Who Regional Committee for the Western Pacific: 5th Session . . 

27th International Congress of Industrial Chemistry 



Venice lune-Sept. 30 

Venice July 6-Sept. 7 

Denmark Aug. 14-Sept. 4 

New York Aug. 20-Sept. 13 

Edinburgh Aug. 22-Sept. 12 

The Hague Aug. 23-Sept. 2 

Algiers Aug. 24-Sept. 5 

Geneva Aug. 25-Sept. 11 

Vienna Aug. 27-Sept. 2 

Tokyo Aug. 28-Sept. 25 

Rome Aug. 31-Sept. 10 

The Hague Aug. 31-Sept. 1 

Philadelphia Sept. 1-16 

Leiden Sept. 1-7 

Buenos Aires Sept. 1-10 

Bonn Sept. 1-15 

Amsterdam Sept. 2-9 

Manila Sept. 6-8 

London Sept. 6-10 

Montreal Sept. 7-28* 

London Sept. 7-10 

London Sept. 8-10 

Geneva Sept. 10-22 

Manila Sept. 10-16 

Brussels Sept. 11-19 



' Prepared in the Office of International Conferences Sept. 24, 1954. Asterisks indicate tentative dates. Following 
is a list of abbreviations: L'nesco, United Nations Educational, Scientific and Cultural Organization; U.N., United 
Nations; Wmo, World Meteorological Organization; Fao, Food and Agriculture Organization: Icao, International Civil 
.\viation Organization; Itu, International Telecommunication Union; Ccir, International Radio Consultative Committee 
(C'omit6 consultatif internationale des radio communications); Who, World Health Organization; Paso, Pan American 
Sanitary Organization; Ecafe, Economic Commission for .Asia and the Far East; Ilo, International Labor Organization; 
Gatt, General .Agreement on Tariffs and Trade; Icem, Intergovernmental Committee for European .Migration; Nato, 
North -Atlantic Treaty Organization. 



Ocfober 4, 1954 



503 



Calendar of Meetings — Continued 

Adjourned During September 1954 — Continued 

Fao Meeting on Desert Locust Control Rome Sept. 13-17 

International Union of Geodesy and Geophysics: 10th General Rome Sept. 14-29 

Assembly 

International Technical Committee for the Prevention and Extin- Rouen Sept. 16-19 

guishing of Fire: Meeting of Permanent Council 

International Federation for Documentation: 21st Conference . . . Belgrade Sept. 19-26 

Fao Committee on Commodity Problems: 24th Session Rome Sept. 20-25 

IX International Exposition of Preserved Foodstuffs and Packing . Parma (Italy) Sept. 20-30 

International Bank for Reconstruction and Development and Inter- Washington Sept. 24-29 

national Monetary Fund: 9th Axmual Meeting of Boards of 

Governors 

In Session as of September 30, 1954 

International Exposition and Trade Fair Sao Paulo Aug. 21- 

Unesco International Seminar for Museum Staff and Educators . . Athens Sept. 12- 

Consultative Committee for Economic Development in South and Ottawa Sept. 20- 

Southeast Asia ("Colombo Plan"): Officials Meeting. 

IcAO Air Navigation Commission: 17th Session Montreal Sept. 21- 

U.N. General Assembly: 9th Regular Session New York Sept. 21- 

IcAO Air Transport Committee: 23d Session Montreal Sept. 27- 

Fao Council: 20th Session Rome Sept. 27- 

IcAO Council: 23d Session Montreal Sept. 28- 

Nine-Power Conference London Sept. 28- 

Scheduled October 1-December 31, 1954 

International Congress of Chronometry Paris Oct. 1- 

International Philatelic and Postal Exhibition New Delhi Oct. 1- 

Consultative Committee for Economic Development in South and Ottawa Oct. 4- 

Southeast Asia ("Colombo Plan"): Ministerial Meeting 

Fao Working Party on Fertilizers: 4th Meeting Tokyo Oct. 4- 

Fao Working Party on Rice Breeding: 5th Meeting Tokyo Oct. 4- 

Paso Executive Committee: 23d Meeting Santiago Oct. 4- 

International Council for the Exploration of the Sea: 42d Annual Paris Oct. 4- 

Meeting. 

Itu International Telephone Consultative Committee: XVII Pie- Geneva Oct. 4- 

nary Assembly 

IcAO North Atlantic Regional Air Navigation Meeting: 3d Session . Montreal Oct. 5- 

10th General Conference on Weights and Measures Paris Oct. 5- 

Unesco Seminar for Leaders of Youth Movements Habana Oct. 5- 

Caribbean Commission - Unesco Joint Conference on Education Port-au-Spain Oct. 6- 

and Small-Scale Farming in Relation to Community Develop- 
ment 

2d International Meeting of Communications Genoa Oct. 6- 

U.N. ECAFE Subcommittee on Electric Power: 4th Session . . . Tokyo Oct. 6- 

Paso 14th Pan American Sanitary Conference and 6th Meeting of Santiago Oct. 7- 

the Regional Committee of Who 

General Assembly of the International Commission of Criminal Rome Oct. 9- 

Police: 23d Session 

Fao International Rice Commission: 4th Session Tokyo Oct. 11- 

Ilo Iron and Steel Committee: 5th Session Geneva Oct. 11- 

South Pacific Commission: 13th Session Noumda (Now Caledonia) . Oct. 11- 

International Wheat Council: 16th Session London Oct. 12- 

U.N. ECAFE Railway Subcommittee: 3d Session and Working Tokyo Oct. 13- 

Party on Prevention and Speedy Disposal of Claims. 

Southeast Asia Communications Coordinating Meeting Bangkok Oct. 18- 

Paso Executive Committee: 24th Meeting Santiago Oct. 22- 

International North Pacific Fisheries Commission: 2d Meeting . . Vancouver Oct. 25- 

Ilo Metal Trades Committee: 5th Session Geneva Oct. 25- 

U.N. Ecafe Working Party of Experts on the Aspects of Economic Bangkok Oct. 25- 

Development Programs. 

GATTylfi Hoc Committee for Agenda and Intersessional Business . . Geneva Oct. 26- 

General Agreement on Tariffs and Trade: 9th Session of Contracting Geneva Oct. 28- 

Parties. 

International Exposition in Bogotd Bogota Oct. 29- 

Unesco Executive Board Rio de Janeiro Oct. 31- 

U.N. EcAFB yld //oc Working Party of Senior Geologists on the Prepa- Bangkok Nov. 1- 

rations of a Regional Geological Map for Asia and the Far East. 

UNESCO Budget Committee Montevideo Nov. 1- 

Unesco Executive Board Montevideo Nov. 1- 

Fao European Forestry Commission and ^\'orkiIlg Party on Af- Geneva Nov. 3- 

forestatioii. 

14t}i International (^ongress of Military Medicine and Pharmacy . . Luxembourg Nov. 7- 

504 Department of State Bulletin 



Calendar of Meetings — Continued 

Scheduled October l-December 31, 1954 — Continued 

Iiiternatioiiiil Philatclicftl Kxpositioii 

Fao 3d Inlor-Amoricaii Meeting on Livestock Production 

Ilo Governing Body: 127th Session 

U.N. EcAFE Mineral Resources Subcommittee: Ist Session . . . . 

Fag Meeting on Economic Aspects of the Uicc Situation 

Unksco General Conference: 8th Session 

Third Inter-American .Vccounting Conference 

Inter-.\merican Commission of Women : 10th General Assembly . . 

Customs Cooperation Council 

IcAo Special Kuropean-. Mediterranean Communications Meeting . 

Meeting of Ministers of Finance or Economy (4th Extraordinary 
Meeting of Inter-American Economic and Social Council). 

IcEM Ad Hoc Subcommittee on Draft Rules and Regulations . . . 

International Sugar Council: Statistical (committee 

International Sugar Council: Executive Committee 

Ilo 8th International Conference of Labor Statisticians 

International Sugar Council: Second Se.ssion 

IcEM Subcommittee on Finance: 6th Session 

Caribbean Commission: 19th Meeting 

Intergovernmental Committee for European Migration: 8th Ses- 
sion. 

Nato Ministerial Meeting of the Council 

Fao Fourth World Forestry Congress 

Inter-American Seminar on Secondary Education 



Siio Paulo . . 
Uuenos Aires 
Home . . . . 
Bangkolc . . . 
Rangoon . . . 
Montevideo . . 
Sao Paulo . . 
Port-au-Prince 
Brussels . . . 

Paris 

Rio de Janeiro 



Geneva 

London 

London 

Geneva 

London 

Geneva 

Cayenne (French Guiana) 

Geneva 



Paris 

Dehra Dun (India) 
Santiago 



Nov. 


7- 


Nov. 


8- 


Nov. 


8- 


Nov. 


8- 


Nov. 


11- 


Nov. 


12- 


Nov. 


14- 


Nov. 


14- 


Nov. 


15- 


Nov. 


16- 


Nov. 


22- 


Nov. 


22- 


Nov. 


22- 


Nov. 


23- 


Nov 


23- 


Nov. 


24- 


Nov. 


2.')- 


Nov. 


29- 


Nov. 


30- 


November* 


Dec. 


11- 


Dec. 


29- 



Chinese Communist^^ Attacks 
on Free World Shipping 

Statement by Henry Cabot Lodge, Jr. 
UjS. Representative to the United Natio-ns^ 

I am making public today for the first time an 
official list, recently completed, which shows that 
the shooting down of an unarmed British airliner 
off Hainan Island last July 22 - was but the latest 
of at least 39 warlike acts by the Chinese Com- 
munists against the ships and aircraft of free na- 
tions in the last 4 years. This is issued for the 
information of the public. It speaks for itself. 

Wlien the attack off Hainan took place, not only 
the United States and Britain, whose citizens lost 
their lives, but people all over the world were 
alarmed at this action against himianity and in- 
ternational law. My purpose in making public 
this list of 38 additional attacks is to show that the 
Hainan shooting was no isolated incident but part 
of a pattern of constant aggressive pressure 
against the free world. 

' Issued by the U. S. Mission to the United Nations on 
Sept. 19 (U.S.AJ.N. press release 1956 dated Sept. 17). 

'Bulletin of Aug. 2, 1954, p. 165, and Aug. 9, 1954, 
p. 196. 



This tabulation shows 26 incidents involving the 
British flag, 5 involving the United States, 2 in- 
volving Denmark, 2 involving Panama, and one 
each involving Norway, France, and Portugal. 

In turn, this series of acts of piracy must be 
viewed as part of a still larger pattern. I refer to 
the Chinese Communist record in Korea ; the cam- 
paigns of extermination against the Chinese people 
themselves, in which millions have lost their lives; 
the boast of the Chinese Communist leaders that 
tliey have the second largest army in the world — 
second only to the Soviet Union. Within this 
larger pattern, the many violent actions off the 
Cliinese coast over the past 4 years seem to reveal 
the basic character of the Red Chinese regime — 
a regime committed to any means whatever, but 
especially to violence, in order to achieve its aims 
of conquest. 

From July 1950 through June 1954 the Chinese 
Communists made 38 attacks on foreign ships and 
aircraft, as follows : 

1950 

July 20, 1950: British S.S. 7'afc Shing was fired on by Chi- 
nese Communist shore batteries in the vicinity of Lafsanii, 
the ship's location possibly within 2 miles of Lafsami. 

July 2//, I'JSO: The Panamanian ship S.S. Flyiny Dragon 
was fired on by Chinese Communist shore batteries on 
Lafsami. The ship was hit. 



Ocfober 4, 7954 



505 



August 2, 1950: An Air France plane was fired on by Chi- 
nese Communist A/A guns, Ladrone Island. 

August 3, 1950: The 300-ton British freighter Namhee was 
fired on by Chinese Communist shore batteries on the Nam 
Shan Islands. There were no hits and no casualties. 

August 6, 1950: The American ship S.S. Steel Rover was 
fired on by Chinese Communist shore batteries in the Lama 
Island group ; the ship was just entering Hong Kong. 

Auffiist 7, 1950: The British ship S.S. Haiiii Sung was fired 
on by Chinese Communist shore batteries in the Lama 
Islands ; the ship was just outside Hong Kong waters ; 
two British oflicers were slightly wounded. 

August S, 1950: The Norwegian ship S.S. Pleasantville 
was fired on by Chinese Communist shore batteries in the 
Lama Islands. The ship was just outside Hong Kong. 

August 13, 1950: A Pacific Overseas Airways plane, under 
U.S. flag, was fired on by Chinese Communist machine 
guns from an island near Macao. 

August n, 1950: The British destroyer Concord was re- 
peatedly shelled by Chinese Communist batteries on the 
Lama Islands, then by batteries on the Ling Ting Islands. 
One enlisted man was wounded. 

September 16, 1950: The British ship S.S. Sing Hing was 
fired on by Chinese Communist shore batteries from the 
Lama Island group. 

September 17, 1950: The British ship S.S. Mahadevi was 
fired on by Chinese Communist shore batteries in the Lama 
Island group. 

October 7, 1950: The Danish S.S. Emilie Maersk was flred 
on by Chinese Communist shore batteries on the Lama 
Island group. 

November 7, 1950: Portuguese sloop Ooncalo Velho was 
flred on by Chinese Communist shore batteries on the 
Lafsami Islands. The ship was just outside Hong Kong 
waters on the regular Hong Kong-Macao route. 

December S, 1950: A Panamanian flagship was shelled by 
Chinese Communist shore batteries off Wu Tu Island, 
near Amoy. No damage, no casualties. 

December 9, 1950: The British tug Allegiance was fired on 
by shore batteries at Putao (Pak Leak) Island, in the 
Wan Shan Island group. The tug was returning from 
the rescue of the Philippine S.S. Joseph S. The master 
and two crew members were slightly injured. 

1951 

February IS, 1951: The British-registered Caltex II, a 
motor vessel, was shelled by Chinese Communist shore 
batteries on Ling Ting Island. The ship was outside 
Hong Kong waters. The British master and British chief 
officer were injured. 

April 10, 1951: The British ship Jade Leaf on its way from 
Hong Kong to Chuen Chow was forced by weather con- 
ditions to anchor near Namao Island, off Swatow. The 
master did not know that the area was prohibited. The 
ship was fired on by Chinese Communist shore-battery 
machineguns. The ship was bit once and there were no 



casualties. Later, while entering Swatow, the ship was 
buzzed by unidentified planes. 

April 1(1, 1951: Chinese Communist .shore batteries on 
outer Ling Ting Islands fired on the British S.S. Victoria 
Peak causing some of the cargo to ignite. 

May 3, 1051: The British tug, Caroline Holler, while tow- 
ing barge, was fired on by Chinese Communist shore bat- 
teries on the Ling Ting islands. 

June 8, 1951: The British S.S. Edith Mollcr was shelled 
li.v Cbine.se Communist armed junk and shore batteries 
near Hong Kong. 

June S. 1951: The Danish ship Marieskov. while going 
up the Pearl River estuary, was shelled by Chinese Com- 
munist island batteries. 

August 12, 1951: Enroute Hong Kong to Chuanchow, the 
British S.S. Jade Leaf took shelter in Tang Sang harbor. 
The ship, being mistaken for Nationalist, was attacked 
by the Chinese Communists. The attack resulted in the 
killing of the boatswain. 

September 2, 1951: Between Hong Kong and Macao, the 
British flag r» Hen, on the regular Hong Kong-Macao 
run, was fired on by a Chinese small craft. 



A vessel off Swatow fired on a U.S. 



Tiovember 26, 1951: 
Navy plane. 

1952 

Januanj 1952: The Asiatic Petroleum Company's oil 
lighter BPM 88, sailing under British flag, was intercepted 
and detained by the Chinese Communists, on the fringe 
of Hong Kong territorial waters. 

September 25, 1952: On the regular Hong Kong-Macao 
route the British flag S.S. Tak Shing was fired on and 
detained by an armed Chinese Communist naval vessel. 
The Tak Shing was taken to Lafsami Island where two 
passengers were removed. 

Scjitember 25, 1952: In answer to the distress call, the 
H.M.S. Mounts Bay and consort arrived to give escort 
to the Tak Shing to Hong Kong. While still in British 
territorial water, 4 miles from Lafsami. Chinese Com- 
munist shore batteries fired on the Mounts Bay. The 
Mounts Bay returned fire and silenced the batteries. 

October 13, 1952: While pursuing a susijected smuggling 
junk, a Hong Kong revenue launch in the vicinity of 
Ling Ting Island was fired on by a Chinese Communist 
shore battery. 

November 2, 1952: A Chinese Communist armed junk took 
into custody two British seamen in a whale boat sailing 
around Hong Kong Island — about half way between Lama 
Island and the Ling Ting Islands. The men were taken to 
Canton, questioned intensively, and were returned to 
Hong Kong on Jlarch 19, 1953, having been detained for 
more than 4 months. 

1953 

January IS, 1953: Chinese Communist A/A fire off Swatow 
shot down U.S.N. Neptune plane. U.S.C.G. Mariner 
crashed taking off after rescue. U.S. destroyer flred on by 



506 



Department of State Bulletin 



shore batteries, later chased by hostile craft. Total cas- 
ualties were eleven missing. 

iliirrh it, lOoS: Chinese Communist gunlmnt seized U.S. 
yaclit Kelt about 5 miles west of Lantau Island, 6-7 miles 
north of Lafsanii. The following' Americans were taken 
Into custody and not released until September VXA: 
Rlcliiird Applcgate, Henjamiu Krasner, and Donald Dixon. 
Tlircc t'binese, who were with the Americans, have not 
been released. 

April SO, li>')3: A Chinese Communist fiuulioat attacked 
a British-registered motor junk in international waters 
near Soko Island and Sans Lau I'oint off the southwest 
tip of Lantau Island. After taking refuge in British 
waters, a Ciiinese Communist sunlioat and four Commu- 
nists in naval uniform pursued the Junk and after some 
shootinv: took it. The Horn; Kong Marine Department 
later rescued the crew. 

3Iay 25, 1953: As it was leaving Amoy, the British S.S. 
yiiicloik- received small arms fire from Communist-held 
Hu Hsu Island. 

June 30. 1953: At Scrag Point Chinese Communist shore 
batteries fired on the S.S. HiidraJuck of British registry. 

September 9, 1953: A Chinese Communist gunboat tired on 
Hong Kong ML 1323 in disputed waters in the Pearl River 
estuary. Resulting casualties : 6 British navy crew mem- 
bers and one captain of the Royal Hong Kong defense force 
killed. 

yoveniber 11, 1953: Chinese Communist shore batteries 
fired on S.S. Inchulva, under British flag, while entering 
Wenchow. 

yorember 12, 1953: The S.S. Inehuh-a again attempted to 
enter Wenchow. It was again shelled with no damage. 

1954 

June i. 1954: Chinese Communists took British forces 
yacht Elinor which, while on a pleasure cruise, entered 
Chinese Communist waters through navigational error. 
2 officers and 7 men aboard were detained tiU July 10. 



Chinese Representation 
in the United Nations 

Statement by Ambassador Lodge 

U.S. Representative to the General Assembly^ 

Madam President, let me first of all express on 
behalf of the United States appreciation for the 
statesmanlike address with which you have just 
favored us, and let me say too that we take great 
satisfaction in the way in which you have con- 



ducted yourself as president of this General As- 
sembly during the year just ending. 

Let me also, as representing tlu' host country, 
extend a cordial welcome to the delegates and the 
alternates, expressing the hope that your stay here 
will be fruitful and enjoyable. 

Now, Madam President, for reasons which are 
well known, the United States will not engage in 
a discussion of the substance of this question that 
has been raised by the representative of the Soviet 
Union. Indeed, we will make a motion as fol- 
lows : I move that the Assembly decide not to con- 
sider at its Ninth Session during the current year 
any proposals to exclude the representatives of the 
Government of the Republic of China or to seat 
representatives of the Central People's Govern- 
ment of the People's Republic of China. 

Logically, this motion takes precedence over the 
Soviet proposal,'-' and therefore I ask that rule 93 
of the Rules of Procedure be invoked. This rule 
reads as follows : "If two or more proposals relate 
to the same question, the General Assembly shall, 
unless it decides otherwise, vote on the proposals 
in the order in which they have been submitted. 
The General Assembly may after each vote on a 
proposal decide whether to vote on the next pro- 
posal." Tliat is the end of rule 93. 

That rule, you will observe, gives the Assembly 
the power to decide questions of precedence, and 
I accordingly ask the Assembly to decide to vote 
first on my motion. Put that first, and then I will 
ask to vote on the motion itself. 

I therefore ask the chair to put the following 
proposal to the Assembly, that the Assembly de- 
cides to consider first the motion just offered by 
the representative of the United States. Then 
after that motion has been voted on, it would then 
be in order to vote on the substantial proposal 
which I have made.* 



' Made at the opening session of the Ninth General As- 
sembly on Sept. 21 (U.S./U.N. press release 1958). 

Ocfober 4, 1954 



'The Soviet draft resolution (U.N. doc. A/L. 176) 
proposed that representatives of the People's Republic 
of China take the seat of China in the General Assembly 
and in other organs of the United Nations. 

'The Assembly decided to consider the U.S. motion 
first, by a vote of 45-7 (Burma. Byelorussia, Czecho- 
slovakia, Poland, Sweden, Ukraine, U.S.S.R.), with 5 
abstentions. The U.S. draft resolution (U.N. doc. A/L. 
177) was then approved by a vote of 43-11 (Burma, 
Byelorussia, Czechoslovakia, Denmark, India, Norway. 
Poland, Sweden, Ukraine, U.S.S.R., Yugoslavia), with 
G abstentions. 

507 



TREATY INFORMATION 



Status of Tariff Concessions 
Under GATT 

Press release 517 dated September 20 
DEPARTMENT ANNOUNCEMENT 

Public views were requested on September 21 
regarding the status of tariff concessions granted 
in the General Agreement on Tariffs and Trade 
in view of the jjossibility of modification of article 
XXVIII of the agreement. 

Article XXVIII, as it stands at present, pro- 
vides that on or after July 1, 1955, any country 
may withdraw tariff commitments with regard to 
any particular product. However, a country 
wishing to withdraw a concession first must try to 
reach some basis of agreement with other inter- 
ested contracting parties concerning such with- 
drawal. A possible basis for agreement would be 
the granting of new concessions as compensation 
for the withdrawn concession. If such efforts to 
arrive at agi-eement fail, the country can never- 
theless proceed with its intended action and the 
other interested country then becomes free to with- 
draw equivalent concessions in order to restore 
balance in the agreement. 

Because of concern that extensive use of the uni- 
lateral procedure might lead to a rather rapid 
increase in world tariffs, the date at which this pro- 
cedure might become available, which originally 
■was January 1, 1951, has twice been postponed. 
Proposals to modify the application of article 
XXVIII are expected to be made at the coming 
Ninth Session of the General Agreement which 
opens on October 28. 

Interested persons may express views with re- 
gard to any aspect of this matter, including the 
general question of modification of the article, as 
well as possible changes in individual concessions 
which the United States has received or granted. 
Such views will be carefully considered before a 
final decision is reached as to the U.S. position. 
Certain views on this subject were presented at the 
hearings on the Gatt review of September 13 
through September 17, held by the U.S. delega- 



tion to tlie review session.^ These views will be 
made available to the trade-agreements organiza- 
tion for consideration along with information and 
views presented at the coming hearings. 

Written views should be submitted to the Com- 
mittee for Reciprocity Information, the interde- 
partmental organization which receives views with 
regard to trade agi'eement matters, by October 18. 
Public hearings will also be held by the committee, 
opening on October 18 in the auditorium of the 
National Archives Building, Eighth Street and 
Pennsylvania Avenue, Washington, D.C. Appli- 
cations for appearances before the committee 
should be made by October 6 and should be accom- 
panied by a written brief or by a preliminary out- 
line indicating as specifically as possible the sub- 
ject on which the individual wishes to be heard. 
A written brief must in all cases be submitted be- 
fore the individual makes his appearance. Appli- 
cations to be heard should be made to the Chair- 
man, Committee for Reciprocity Information, 
Tariff Commission Building, Washington 25, 
D.C. 

Article XXVIII now provides, in effect : 

1. On or after July 1, 1955,- any contracting 
party may, by negotiation and agreement with any 
other contracting party with which such treatment 
was initially negotiated, and subject to consulta- 
tion with such other contracting parties as the con- 
tracting parties determine to have a substantial 
interest in such treatment, modify, or cease to ap- 
ply, the treatment which it has agreed to accord 
under article II to any product described in the 
appropriate schedule annexed to the General 
Agreement. In such negotiations and agi-eement, 
which may include provision for compensatory ad- 
justment with respect to other products, the con- 
tracting parties concerned shall endeavor to main- 
tain a general level of reciprocal and mutually ad- 
vantageous concessions not less favorable to trade 
than that provided for in the agreement. 

2. (a) If agreement between the contracting 
parties primarily concerned cannot be reached, the 
contracting party which proposes to modify or 
cease to apjily such treatment shall, nevertheless, 
be free to do so, and if such action is taken tlie con- 



' For .\ssislaut Secretary Waugh's statement at the 
opening of the review session, see Bulljh'in of Sept. 27, 
1954, p. 458. 

'■' The appliiable date in the case of Brazil is .Ian. 1, 1054. 



508 



Department of State Bulletin 



tracting party with which such treatment was ini- 
tially iiegotiuteil, and the other contracting parties 
detorniined under paragraph 1 of this article to 
have a substantial interest, shall then bo free, not 
later than C months after such action is taken, to 
withdraw, upon the ex[)iration of 30 days from the 
day on which written notice of such witiulrawal is 
received by tlie contracting parties, substantially 
equivalent concessions initially negotiated with the 
contracting party taking such action. 

(b) If agreement between the contracting par- 
ties primarily concerned is reached but any other 
contracting party determined under paragraph 1 
of this article to have a substantial interest is not 
satisfied, such other contracting party shall be free, 
not later than 6 months after action under such 
agreement is taken, to withdraw, upon the expira- 
tion of 30 days from the day on which written no- 
tice of such withdrawal is received by the contract- 
ing parties, substantially equivalent concessions 
initially negotiated with a contracting party tak- 
ing action under such agreement. 



NOTICE ISSUED BY 
INTERDEPARTMENTAL COMMITTEE 

Pursuant to section 4 of the Trade Agreements Act 
approved June 12, 11):{4, as amended (48 Stat. (pt. 1) 945, 
ch. 474; 65 Stat. 73, ch. 141), and pursuant to paragraph 
4 of Executive Order 10082 of October 5, 1949 (3 CFR, 
1949 SUPP; p. 126), notice is hereby given by the Inter- 
departmental Committee on Trade Agreements that, in 
connection with the forthcoming review and renegoti- 
ation of the General .Agreement ou Tariffs and Trade 
with a view to strengthening that agreement, it is intended 
that consideration will be given to enhancing the tirmness 
of the tariff concessions. In particular, consideration 
would be given the modification of the application of the 
provisions of article XXVIII of the General Agreement 
by extension of the date after which such provisions may 
be invoked, or otherwise. 

Article XXVIII, which is one of the most important 
provisions of the General Agreement in relation to the 
firmness of the concessions on individual products, pro- 
vides that these concessions, originally negotiated in the 
case of the United States at Geneva in 1947, at Annecy 
in 1949, or at Torquay in 1950 to 1951, may he modified 
or withdrawn on or after a specified date, following con- 
sultation and negotiation with other contracting parties, 
without the necessity of terminating the entire agree- 
ment. The article envisages that the balance tietweon the 
concessions granted by the various contracting parties 
shall be maintained, preferalily through the negotiation 
of new concessions in compensation for any modifications 
or withdrawals made, but through retaliatory modifica- 
tions by other parties if agreement cannot be readied on 
new concessions. The date on and after which the pro- 



visions of article XXVIII may now he invoked Is July 1, 
1955, except for concessions in Schedule III (Brazil) and 
concessions initially negotiated by other contracting 
parlies with Brazil as to which such provisions may now 
be invoked. No modillcation of article XXVIII would 
affect the right of any contracting party to withdraw or 
modify individual concessions pursuant to artU-le XIX 
(commonly called "the escape clau.se") of the General 
Agreement. 

Pursuant to section 4 of the Trade Agreements Act, as 
amended, and paragraph 5 of Kxecutive Order 10082, 
information and views as to any asi)ect of the proposals 
announced in this notice may be submitted to the Com- 
mittee for Reciprocity Information in accordance with 
the announcement of this date issued by that committee. 
Information and views submitted, orally or in writing, 
to the chairman of the United Stales delegation for the 
review and renegotiation of the General Agreement, in 
connection with the hearings held under his direction 
from September 13 through Sopteniher 17, 19.54, will be 
made available to the Committee for Reciprocity Infor- 
mation. 

By direction of the Interdepartmental Committee on 
Trade Agreements this 21st day of September, 19.54. 
Caul D. Corse 

Chairman, Interdepartmental 
Committee on Trade Agreements 



NOTICE ISSUED BY COMMITTEE 
FOR RECIPROCITY INFORMATION 

The Interdepartmental Committee on Trade Agree- 
ments has issued on this day a notice of intention to con- 
sider possible modification of the firmness of the tariff 
concessions in the General Agreement on Tariffs and 
Trade. 

The Committee for Reciprocity Information hereby 
gives notice that all applications for oral presentation of 
views in regard to the foregoing proposals shall be sub- 
mitted to the Committee for Reciprocity Information not 
later than 12 : 00 noon October 6, 19.'54, accompanied by a 
written brief or by a preliminary outline indicating the 
subject as specifically as possible on which the indi- 
vidual wishes to be heard. A written brief must, in all 
cases, be submitted before the individual makes his oral 
appearance. Communications shall be addressed to 
■■The Committee for Reciprocity Information, Tariff 
Commission Building, Washington 25, D.C." Fifteen 
cojues of written statements, either typed, printed, or 
duplicated shall be submitted, of which one copy shall 
be sworn to. 

Written statements submitted to the Committee, except 
information and business data proffered in confidence, 
shall be open to inspection by interested persons. Infor- 
mation and business data proffered in confidence shall 
lie submitted in separate pages clearly marked "For of- 
ficial use only of Committee for Reciprocity Information." 

Public hearings will be held before the Committee for 
Reciprocity Information, at which oral statem(>nts will 
he heard. The first hearing will he at 10: IX) a. m. on 



Ocfober 4, 7954 



509 



October IS, 1954 in the auditorium of tbe National 
Archives Building, 8th and Pennsylvania Aveuue, North- 
west, Washington, D. C. Witnesses who make applica- 
tion to be heard will be advised regarding the time of 
their individual appearances. Appearances at hearings 
before the Committee may be made only by or on behalf 
of those persons who have, prior to that appearance, 
filed written briefs and who have within the time pre- 
scribed made written application for oral presentation of 
views. Statements made at the public hearings shall be 
under oath. 

Copies of the notice issued today by the Interdepart- 
mental Committee on Trade Agreements may be obtained 
from the Committee for Reciprocity Information, Tariff 
Commission Building, Washington 25, D. C. and may be 
inspected in the Field Offices of the Department of Com- 
merce. 

By direction of the Committee for Reciprocity Informa- 
tion this 21st day of September 1954. 

Edwabd Taedlet 
Secretary, Committee lor 
Reciprocity Information 



Current Actions 

MULTILATERAL 



exchange of notes at Canberra September 3, 1954. En- 
tered into force September 3, 1954. 

El Salvador 

Cooperative program agreement for agricultural develop- 
ment, pursuant to the general agreement for technical 
cooperation of April 4, 1952 (TIAS 2527). Signed at 
San Salvador July 16, 1954. 

Entered into force: August 10, 1954 (the date notifica- 
tion of ratification was given the United States by El 
Salvador). 

Agreement for a cooperative program of productivity, 
pursuant to the general agreement for technical co- 
operation of April 4, 1952 (TIAS 2527). Signed at San 
Salvador August 31, 1954. Enters into force on date 
that notification Is given the United States of publica- 
tion of the agreement in the Diario Oflrial of El 
Salvador. 

Greece 

Agreement to correct certain errors in the English text 
of the convention of February 20, 1950 (TIAS 2901) 
for the avoidance of double taxation and the j)reveution 
of fiscal evasion with respect to taxes on the estates of 
deceased persons. Effected by exchange of notes at 
Athens August 3 and 19, 1954. Entered into force 
August 19, 1954. 



Germany 

Agreement on German external debts. Signed at London 
February 27, 1953. Entered into force Septemlier 16, 
1953. TIAS 2792. 
Ratification deposited: Spain, August 25, 1954. 

Narcotics 

Protocol for limiting and regulating the cultivation of the 
poppy plant, the production of, international and whole- 
sale trade in, and use of opium. Dated at New York 
June 23, 1953.' 
Accession deposited: Cuba, September 8, 1954. 



BILATERAL 



Australia 



Agreement amending article 5 of the agreement of Novem- 
ber 26, 1949 (TIAS 1994) for the use of funds made 
available in accordance with the agreement on settle- 
ment for lend-lease, reciprocal aid, surplus war property 
and claims of June 7, 1946 (TIAS 1528). Effected by 



' Not in force. 



Mexico 

Agreement for a cooperative project with Escuela Superior 
de Agricultura "Antonio Narro," pursuant to the general 
agreement of June 27, 1951 (TIAS 2273), as amended. 
Effected by exchange of notes at Mexico June 17, 1954. 
Entered into force June 17, 1954. 

Panama 

Agreement extending tbe modus rivcndi signed Septem- 
ber 14, 1950 (TIAS 2481), providing for maintenance 
of the Boyd-Roosevelt Highway pending entry into 
force of the highway convention, also signed September 
14, 1950. Effected by an exchange of notes at Panama 
August 12, 26, and 30, 1954. Entered into force August 
30, 1954. 

Viet-Nam 

Agreement relating to duty-free entry and defrayment of 
inland transportation charges on relief supplies and 
packages for Viet-Nam. Effected by exchange of notes 
at Saigon August 20 and 26, 1954. Entered into force 
August 26, 1954. 



510 



Department of State Bulletin 



J 



October 4, 1954 



Index 



Vol. XXXI, No. 797 



Agricnilnra. Admlnlslruilon of Agricultural Tnds Development 

luul AsslsUinco Act of 19M 498 

American Principles 

Piirliii'rslilp (or ri<aci> (Dulles) 471 

U. 8. Pro(;rani for Return of Historic Objects to Countries of Origin, 

1944-19M (Hull) 493 

Atomic Energy 

Corri'spomli'iia' With Soviet Vnlon on Atomic Pool Proposal (toits 

of corrt»sponiJeiice> 478 

Partnership for Peai-o (Dulles) 471 

Statement by Ambassador Lodge on Atomic Pool Proposal 475 

V. 3. Request to Secretarj'-Clencral for Agenda Item on Atomic Energy 

(Lodge) 474 

AiulrU. First U. S. Flood Relief Cargo t«aves for Austria 490 

Bulgaria. Anniversary of Death of Bulgarian Patriot (Smith) ... 490 

China 

Chinese Communist Attacks on Freie World Shlpiilng (Lodge) ... 505 

Chinese Representation in the I'nlted Nations (Lodge) 607 

Shipmcnis to Hong Kong 492 

Economic Affairs 

Administration of -Agricultural Trade Development and Assistance 

Act of 1954 498 

Chinese Communist Attacks on Free World Shipping (Lodge) ... 105 

Shipments to Hong Kong 492 

Status of Taria Concessions Under OATT 508 

Sweden Removes Import License Requirements on Some Items ... 502 

Europe 

Nine-Power Conference on European Security (Dulles) 489 

C. S. Program for Return of Historic Objects to Countries of Origin, 

1»44-1954 (HaU) 491 

France. C S.-French Talks on Indochina 491 

Germany. Nine-Power Conference on European Security (Dulles) . . 489 

Indochina. ('. S.-French Talks on Indochina 461 

International Organizations and Meetings 

Calendar of .Meetings 503 

Nine-Power Conference on European Security (Dulles) 489 

Iran. Iranian Message of Sympathy Concerning Hurricane Damage 

(tests of letters) 491 

Japan. Death of Japanese Fisherman (Allison) 492 

Liberia. Visit of President Tubman 491 

Military AITalrs. Chinese Communist .Attacks on Free World Ship- 
ping (Lodge) 505 

Mutual Security. First C. S. Flood Relief Cargo Leaves for Austria . 490 

Pakistan. U. S.-Pakistan Friendship (Hildreth) 492 

Presidential Documents 

Administration of .Agricultural Trade Development and -Assistance 

Act of 19.V1 498 

Iranian Message of Sympathy Concerning Hurricane Damage ... 491 

Publications. BrixETiN Marks Twenty-fifth .Anniversary .... 477 

State, Department of. Buu-ETIN Marks Twenty-fifth .Anniversary . 477 
Sweden. Sweden Removes Import License Requirements on Some 

Items 502 

Treaty Information 

Current Treaty .Actions 510 

Status of Tariff Concessions Under OATT 608 

V. 8. S. R. Correspondence With Soviet Union on Atomic Pool 

Proposal (te.vts of correspondence) 478 

United Nations 

Chinese Communist -Attacks on Free World Shipping (Lodge) ... 505 

Chinese Representation in the United Nations (Lodge) 507 



Partnership for Peaci- (Dulles) 471 

Statement by Anil>u.s.sadur Lodge on Atomic Pool Proposal .... 47S 
U. S. Roi|ue.st to Secretary.Qeneral for Agenda Item on Atomic 

Energy (Lodge) 474 

Namt Index 

Alllsiin, Jiihn M 492 

Bohlen, Charles E 489 

Corse. Carl D 809 

Dullas, Secretary 471,478,479,480,484,489 

ELsenhower, President 491, 498, 600 

Grrimykii, Andrei 488 

Hall, Arilelia R 493 

Hlldroth, Horace A 492 

Lodse, Henry Cabot, Jr 474,47S,50(,»7 

Merchant, Livingston T 48t 

-Molotov, V. M 479,480,482 

Pahlavi. RezB Shah 401 

Smith, Waller HedoU 490 

Tubman, William V. 8 491 

Yardley, Edward 609 

Zaroubln,Ooorgi 478,480 



Check List of Department of State 
Press Releases: September 20-26 

Releii.si's limy be (ilitaiiiecl fioin tlie News Division, 
Department of State, Washington 25, D. C. 

Subject 
Robertson and Laurel : Philippine 

trade. 
Request for views on Gatt. 
Bohan : Economic relations with Latin 

America. 
Pre.sident Tubman's visit. 
Educational exdiange. 
Educational exchange. 
Smith : Anniversary of Petkov's death. 
Hildreth : I'.S.-Pakistan. 
Allison: Deatli of Japanese fisherman. 
Dulles: Partnership for peace. 
Visit of Jlayor of Paris. 
Claim against U.S.S.R. for B-2}). 
Delegation to Sl-jxiwer talks in London. 
U.-S.-Krench talks on Indochina. 
Dulles : Departure for London. 
Correspondence with U.S.S.R. on 

atomic pool. 
Legation in Libya made Embassy. 
Liberalization of Sweden's dollar trade. 

•Not printed. 

tHeld for a later issue of the Bulletin. 



No. 


Date 


t516 


9/20 


517 


9/20 


t518 


9/21 


519 


9/21 


•.520 


9/21 


•,521 


9/21 


522 


9/22 


523 


9/22 


524 


9/23 


525 


9/23 


•526 


9/24 


t527 


9/25 


528 


9/24 


529 


9/25 


.530 


9/25 


531 


9/25 


t532 


9/25 


533 


9/25 



O. S. fiOVCRKMENT PRINTIH6 OFPICCi It94 




United States 
Government Printing Office 

DIVISION OF PUBLIC DOCUMENTS 

Washington 25, D. C. 



PENALTY FOR PRIVATE USE TO AVOID 

PAYMENT OF POSTAGE, S300 

(GPOl 



OFFICIAL BUSINESS 



Foreign Relations of the United States . . . 

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

1937, Volume IV, The Far East 



the 

Department 

of 

State 



Documents published in this volume deal chiefly with prob- 
lems arising from the outbreak of undeclared war between 
China and Japan in July 1937, especially with efforts by the 
United States and other powers to restore peace. This is the 
second of two volumes dealing with the Far East crisis in 1937, 
Foreign Relations of the United States, 1937, Volume III, The 
Far East, having been released in June. 

In 1937 China faced Japan, with the Soviet Union watching 
from the sidelines and discussing developments with other 
powers. Nine hundred pages of contemporary papers deal 
with not only efforts to end the undeclared war but also other 
phases of the war itself and repercussions affecting the United 
States. 

The principal chapter of this volume relates to a conference 
called at Brussels under the terms of the Nine Power Treaty of 
February 6, 1922, regarding China to explore the possibility of 
peaceful solution of the conflict between Japan and China. 
Chapters are also included on American relations with China, 
Japan, and Siam (Thailand). 

Copies of this volume may be purchased from the Superin- 
tendent of Documents, Government Printing Office, Washing- 
ton 25, D. C, for $4 each. 



Order Form 

To: Supt. of Documents 
Govt. Printing Office 
Washington 25, D.C. 



Enclosed find: 



Please send me copies of Foreign Relations of tfie United States, 

1937, Volume IV, The Far East. 

Name: 

Street Address: 

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money order). 



^/te/ ^eft€ty7(t}nent ^^ b^tcfyt^/ 




Vol. XXXI, No. 798 
October 11, 1954 



^BNT o^ 




FINAL ACT OF LONDON CONFERENCE 515 

THE AMERICAN MEMORIAL LIBRARY AT BERLIN • 

by Ambassador Janies B. Conant 531 

U.S. RELATIONS WITH LATIN AMERICA • 

by Ambassador Merwin L. Bohan 535 

COOPERATING TO IMPROVE FREE WORLD'S 

ECONOMY • Statement by Secretary of the Treasury 
Humphrey 548 



For index see inside back cover 







''->T.. O' ' 



^,? Qe/iarttnott c/ Cnate 



bulletin 



Vol. XXXI, No. 798 • Publication 5610 
Ocl(her 11, 1954 



For snle by tlie Superintendent of Documents 

U.S. aoverniiient Printing Office 

Washington 25, D.C. 

Peice: 

62 issues, domestic $7..50, foreign $10.2.'> 

Smgle copy, 20 cents 

The printing of this publication has 
lieen approved by the Director of the 
Dureau of the Budget (January 22, 1952). 

iN'oU': Contents of this publication arc not 
eopyrlKhted anil iti^nis coiil.niied lierein may 
he reprinted. Citation of the Dui'ahtment 
or SlATK 1U'U.ET1N as tile .sourcc will t>e 
aplJreclated. 



The Utpiirtnicnl of State BVLLETIl^, 
a iieehly publication issued by the 
Public Services Division, provides the 
public end interested aaencies of the 
Government ivith information on 
developments in the field of foreign 
relations and on the uork of the 
Department of Slate and the Foreign 
Service. The BILLET I. \ includes 
selected press releases on foreign 
policy, issued by the Uhite House 
and the Department, and statements 
„n,l addresses made by the Vresident 
and by the Secretary of Stale and 
other officers of the Deparlmenl, as 
well as special articles on tnirious 
phases of international affairs ami ihe 
functions of the Department. Infor- 
malion is included concerning treaties 
and inurnational agreements to 
lihich Ihe Lnited Slates is or may 
become a party and treaties of general 
inl{-rtuilii>nal irtteresl. 

l-ublicalions of the Dei>arlmenl. as 
tvell as legislutive material in the field 
of inlcrnalional relations, are listed 
rurrcnily. 



Agreement on Restoration of German Sovereignty and 
German Association with Western Defense System 



FINAL ACT OF THE NINE-POWER CONFERENCE 
HELD AT LONDON, SEPTEMBER 28-OCTOBER 3 



The Conference of the Nine Powers, Belgium, 
Canada, France, German Federal Republic, Italy, 
Luxembourg, Netherlands, United Kingdom of 
Great Britain and Northern Ireland and United 
States met in London from Tuesday September 
Twenty-eighth to Sunday October Third. It 
dealt with the most important issues facing the 
"Western world, security and European integra- 
tion within the framework of a developing Atlan- 
tic community dedicated to peace and freedom. 
In this connexion the Confei'ence considered how 
to assure the full association of the German Fed- 
eral Republic with the West and the German de- 
fence contribution. 

Belgium was represented by His Excellency 
Monsieur P-H. Spaak. 

Canada was represented by the Plonourable 
L. B. Pearson. 

France was represented by His Excellency Mon- 
sieur P. Mendes-France. 

The Federal Republic of Germany was repre- 
sented by His Excellency Dr. K. Adenauer. 

Italy was represented by His Excellencj' Pro- 
fessor G. Martino. 

Luxembourg was represented by His Excellency 
Monsieur J. Bech. 

The Netherlands was represented by His Ex- 
cellency J. W. Beyen. 

The United Kingdom of Great Britain and 
Northern Ireland was represented by Rt. Hon. A. 
Eden, M. C, M. P. 

The United States of America was represented 
by the Honourable J. F. Dulles. 

All the decisions of the Conference formed part 
of one general settlement which is, directly or in- 
directly, of concern to all the Nato powers and 



which will therefore be submitted to the North 
Atlantic Council for information or decision. 

I. Germany 

The Governments of J''rauce, the United King- 
dom and the United States declare that their 
policy is to end the Occupation regime in the Fed- 
eral Republic as soon as possible, to revoke the 
Occupation Statute and to abolish the Allied High 
Commission. The Three Govermnents will con- 
tinue to discharge certain responsibilities in Ger- 
many arising out of the international situation. 

It is intended to conclude, and to bring into 
force as soon as the necessary parliamentary pro- 
cedures have been completed, the appropriate in- 
struments for these purposes. General agree- 
ment has already been reached on the content of 
these instruments and representatives of the Four 
Governments will meet in the very near future 
to complete the final texts. The agreed arrange- 
ments may be put into effect either before or si- 
multaneously with the arrangements for the Ger- 
man defence contribution. 

As these arrangements will take a little time to 
complete, the Three Governments have in the 
meantime issued the following Declaration of In- 
tent: 

Recognising that a great country can no longer be 
deprived of the rights properly belonging to a free and 
democratic people ; and 

Uesiring to associate the Federal Republic of Ger- 
many on a footing of equality with tlieir efforts for 
peace and security. 

The Governments of France, the United Kingdom, 
the United States of America desire to end the Occu- 
pation rC'gime as soon as possible. 

The fulfilment of this policy calls for the settlement 
of problems of detail in order to liquidate the past and 



October 11, 1954 



515 



to prepare for the future, and requires the completion 
of appropriate Parliamentary procedures. 

In the meantime, the Three Governments are instruct- 
ing their High Commissioners to act forthwith in ac- 
cordance with the spirit of the above policy. In 
particular, the High Commissioners will not use the 
powers which are to be relinquished unless in agree- 
ment with the Federal Government, except in the 
fields of disarmament and demilitarisation and in cases 
where the Federal Government has not been able for 
legal reasons to take the action or assume the obliga- 
tions contemplated in the agreed arrangement. 

II. Brussels Treaty 

The Brussels Treaty will be strengthened and 
extended to make it a more effective focus of Eu- 
ropean integration. 

For this purpose the following arrangements 
have been agreed upon : 

(a) The German Federal Kepublic and Italy 
will be invited to accede to the Treaty, suit- 



ably modified to emphasise the objective of 
European unity, and they have declared 
themselves ready to do so. The system of 
mutual automatic assistance in case of at- 
tack will thus be extended to the German 
Federal Republic and Italy. 

(b) The structure of the Brussels Treaty will 
be re-inforced. In particular the Consulta- 
tive Council provided in the Treaty will 
become a Council with powers of decision. 

(c) The activities of the Brussels Treaty Or- 
ganisation will be extended to include fur- 
ther important tasks as follows : 

— The size and general characteristics of the 
German defence contribution will conform 
to the contribution fixed for Edc. 

— The maximum defence contribution to 
Nato of all members of the Brussels Treaty 



*FoUowing are the texts of Annexes I and II to Article 
107 of the European Defense Community Treaty. 

Annex i to Article 107 

1. War iceapons. 

a. Portable firearms, with the exception of hunt- 
ing weapons and calibres less than 7mm. 

b. Machine guns. 

c. Anti-tank weapons. 

d. Artillery and mortars. 

e. Anti-aircraft weapons (D.C.A.). 

f. Smoke-screen, gas and flame producing 
apparatuses. 

2. Munitions and rockets of all types for military use. 

a. Munitions for war weapons defined in Para- 
graph 1 hereinabove and grenades. 

b. Self-propelled weapons. 

c. Torpedoes of all types. 

d. Mines of all types. 

e. Bombs of all types. 

3. Powder and explosives for military use, including 
materiel primarily used for propulsions hy rockets. 

Exempted will be products principally for civilian 
use, specifically : 

Pyrotechiiical compounds ; 
Priming explosives : 
Fulminate of mercury ; 
Nitride of lead ; 
Triuitroresorcinate of lead ; 
Tetrazene ; 

Chlorated Explosives; 

Nitrate exjilosives with dinitrotoluene, or with 
dinitronaplitlialine ; 
Hydrogen-peroxide at less than 60%; 
Nitrocelluloses; 
Black powder ; 



516 



Nitric acid at less than 99% ; 
Hydrate of hydogine at less than 30%. 

4. Armored equipment. 

a. Tanks. 

b. Armored vehicles. 

c. Armored trains. 

5. Warships of all types. 

6. Military aircraft of all types. 

7. Atomic weapons. 

,1 According to definitions 

8. Btologtcal loeapons^l ^.^^^ .^ ^^^^^ ^^ 

9. Chemical weapons.' J jjereinbelow. 

10. Constituent parts which can be used only in the 
construction of one of the items enumerated in groups 
1, 2, 4, 5, and G hereinabove.' 

11. Machines which can be used only for the manufac- 
ture of one of the items enumerated in groups 1, 2, 4, 5, 
and 6 hereinabove.' 

Annex II to Article 107 

The present annex shall be deemed to include the 
weaiHjns defined in Paragraphs I-VI and the manufac- 
turing facilities especially designed for their production. 
Nevertheless, the provisions of Paragraphs II-VI of this 
annex sliall be deemed to exclude any device or assembly, 
apparatus, production facilities, product and agency uti- 
lized for civilian purposes or serving research for sci 



' The Commissariat may exempt from the requirement 
of authorization chemical and liiohigical substances the 
use of which is primarily civilian. If the Commissariat 
decides that it is unable to grant such exemptions, it shall 
limit the control which it exercises solely to the use of 
such substances. 

'The prdduction of models of, and the technical re- 
search concerning, the materials defined in paragraphs 10 
and 11 hereinabove are not subject to the apiiropriate 
provisions of Article 107. 

Deparimenf of State Bulletin 



Organisation will be determined by a spe- 
cial agi'eenient fixing levels which can only 
be increased by unanimous consent. 

— The strength and armaments of the in- 
ternal defence forces and the police on the 
Continent of the countries members of the 
Brussels Treaty Organisation will be fixed 
by agreements within that Organisation 
having regard to their proper function and 
to existing levels and needs. 

The Brussels Treaty Powers agree to set up, as 
part of the Brussels Treaty Organisation, an 
Agency for the control of armaments on the Con- 
tinent of Europe of the continental members of 
the Brussels Treaty Organisation. The detailed 
provisions are as follows. 

1. The functions of the Agency shall be 

(a) to ensure that the prohibition of the manu- 



facture of certain types of armaments as agreed 
between the Brussels Powers is being observed; 

(b) to control the level of stocks held by each 
country on the Continent of the types of arma- 
ments mentioned in the following paragraph. 
This control sluill extend to production and im- 
ports to the extent required to make the control 
of stocks effective. 

2. The types of annaments to be controlled under 
1 (b) above shall be 

(a) weapons in categories I, II and III listed 
in Annex II to Article 107 of the Edc Treaty;* 

(b) weapons in the other categories listed in 
Annex II to Article 107 of the Edc Treaty. 

(c) A list of major weapons taken from Annex 
I to the same Article to be established hereafter 
by an expert working group. 

Measures will be taken to exclude from control 



entifle, medical and Industrial purposes in the spheres of 
pure and applied science. 

I. Atomic Weapons. 

a. An atomic weapon is defined as any weapon 
which contains, or is designed to contain or utilize, 
nuclear fuel or radioactive isotopes and whicli, by 
explosion or other uncontrolled nuclear transfor- 
mation of the nuclear fuel, or by radioactivity of 
the nuclear fuel or radioactive isotopes, is capable 
of mass destruction, mass injury or mass poison- 
ing. 

b. Furthermore, any part, device, assembly or ma- 
terial especially designed for, or primarily useful in, 
any weapon as set forth under Paragraph a, shall 
be deemed to be an atomic weapon. 

c. Any quantity of nuclear fuel produced in any 
one year in excess of 500 grammes will be consid- 
ered material especially designed for, or primarily 
useful in, atomic weapons. 

d. Nuclear fuel as used in the preceding definition 
includes plutonium. Uranium 2.S.3, Uranium 2.35 
(including Uranium 235 contained in Uranium en- 
riched to over 2.1 per cent by weight of Uranium 
2.35) and any other material capable of releasing 
substantial quantities of atomic energy through 
nuclear fission or fusion or other nuclear reac- 
tion of the material. The foregoing materials shall 
be considered to be nuclear fuel regardless of the 
chemical or physical form in which they exist. 

II. Chemical Weapons. 

a. A chemical weapon is defined as any equipment 
or apparatus expressly designed to use, for mili- 
tary purposes, the asphyxiating, toxic, irritant, 



paralysant, growth-regulating, anti-lubricating or 
catalyzing properties of any chemical substance. 
b. Subject to the provisions of Paragraph c, chem- 
ical substances, having such properties and capable 
of being used in the equipment or apparatus re- 
ferred to in Paragraph a, shall be deemed to be 
included in this definition. 

e. Sucli apparatus and such quantities of the chem- 
ical substances as are referred to in Paragraphs 
a and 6 which do not exceed peaceful civilian re- 
quirements shall be deemed to be excluded from 
this definition. 

III. Biological Weapons. 

a. A biological weapon is defined as any equipment 
or apjiaratns expressly designed to use, for mili- 
tary purposes, harmful in.sects or other living or 
dead organisms, or their toxic products. 

b. Subject to the provisions of Paragraph c, in- 
sects, organisms and their toxic products of such 
nature and in such amounts as to make them capa- 
ble of being used in the equipment or apparatus 
referred to in a shall be deemed to be included in 
this definition. 

c. Such equipment or apparatus and such quanti- 
ties of the insects, organisms and their toxic prod- 
ucts as are referred to in I'aragraphs <i and 6 which 
do not exceed peaceful civilian requirements shall 
be deemed to be excluded from the definition of 
biological weapons. 

IV. Long-range Missiles, Guided Missiles and Influence 
Mines. 

a. Subject to the provisions of Paragraph d, long- 
Footnote continued on newt page. 



Oc/ofaer 7 J, 1954 



517 



materials and products in the above lists for 
civil use. 

3. As regards the weapons referred under para- 
graph 2 (a) above when the countries which have 
not given up the right to produce them have passed 
the experimental stage and start effective pro- 
duction, the level of stocks that they will be al- 
lowed to hold on the Continent shall be decided 
by the Brussels Treaty Council by a majority vote. 

4. The continental members of the Brussels Treaty 
Organisation agi'ee not to build up stocks nor 



range missiles and guided missiles are defined as 
missiles such that the velocity or direction of mo- 
tion can be influenced after the instant of launching 
by a device or mechanism inside or outside the 
missile, including V-type weapons developed in the 
recent war and subsequent modifications thereof. 
Combustion is considered as a mechanism which 
may influence the velocity. 

b. Subject to the provisions of Paragraph d, influ- 
ence mines are defined as naval mines which can 
be exploded automatically by influences which ema- 
nate solely from external sources, including influ- 
ence mines developed in the recent war and 
subsequent modifications thereof. 

c. Parts, devices or assemblies specially designed 
for use in or with the weapons referred to in Para- 
graphs a and 6 shall be deemed to be included in 
this definition. 

d. Proximity fuses, and short-range guided missiles 
for anti-aircraft defense with the following maxi- 
mum characteristics, are regarded as excluded from 
this definition : 

Length, 2 meters ; 

Diameter, 30 centimeters ; 

Velocity, GGO meters per second ; 

Ground range, 32 kilometres ; 

Weight of war-head, 22.S kilogrammes. 

V. Naval Vessels other than Minor Defensive Craft. 

Naval Vessels other than minor defensive craft 
mean : 

a. Warsliips over l,.50O tons displacement. 

b. Submarines. 

c. All war.ships powered by means otlier than steam, 
diesel or petrol engines or gas turbines or jets. 

VI. Military Aircraft. 

Complete military aircraft and components thereof, 
as listed below: — 

a. Air frames — center section spars, wing panel 
spars, longerons. 

I). Jet engines — centrifugal iniiicllors, turbo discs, 
burners, axial flow center shafts, 
c. Reciprocating engines — cylinder blocks, super- 
charger impellors. 



to produce the armaments mentioned in para- 
graph 2 (b) and (c) beyond the limits required 

(a) for the equipment of their forces, taking into 
account any imports including external aid, and 

(b) for export. 

5. The requirements for their Nato forces shall 
be established on the basis of the results of the 
Annual Review and the recommendations of the 
Nato military authorities. 

6. For forces remaining under national control, 
the level of stocks must correspond to the size and 
mission of those forces. That level shall be noti- 
fied to the Agency. 

7. All importations or exportations of the con- 
trolled arms will be notified to the Agency. 

8. The Agency will operate through the examina- 
tion and collation of statistical and budgetary 
data. It will undertake test checks and will make 
such visits and inspections as may be required to 
fulfil its functions as defined in paragraph 1 
above. 

9. The basic rules of procedure for the Agency 
shall be laid down in a Protocol to the Brussels 
Treaty. 

10. If the Agency finds that the prohibitions are 
not being observed, or that the appropriate level 
of stocks is being exceeded, it will so inform the 
Brussels Council. 

11. The Agency will report and be responsible to 
the Brussels Council, which will take its decisions 
by a majority vote on questions submitted by the 
Agency. 

12. The Brus-sels Council will make an Annual 
Report on its activities concerning the control of 
armaments to the Delegates of the Brussels Treaty 
Powers to the Consultative Assembly of the Coun- 
cil of Europe. 

13. The Governments of the U.S.A. and Canada 
will notify the Brussels Treat}' Organisation of 
the military aid to be distributed to the continental 
members of tliat Organisation. The Organisation 
may make written observations. 

14. Tlie Brussels Council will establish a Work- 
ing Group in order to study the draft directive 
presented by the French Government and any 
other papers which may be submitted on the sub- 
ject of armaments production and standardisation. 

15. The Brussels Treaty Powers have taken note 



518 



Department of Slate Bulletin 



of the following Declaration of the Chancellor of 
the Federal Republic of Germany and record their 
agreement with it : 

The Federal Chancellor Declares : 

(hat the Federal Republic undertakes not to manu- 
facture in its territory any atomic weapons, chemi- 
cal weapons or biological weapons, as detailed in 
paragraphs I, II and III of the attached lists; 

that it undertakes further not to manufacture in 
its territory such weapons as those detailed in 
paragraphs IV. V and VI of the attached list. 
Anj' amendment to or cancellation of the substance 
of paragraphs IV, V and VI can, on the request 
of the Federal Republic, be carried out by a resolu- 
tion of the Brussels Council of Ministers by a two- 
thirds majority, if in accordance with the needs 
of the armed forces a request is made by the com- 
petent supreme commander of Nato ; 

that the Federal Republic agrees to supervision by 
the competent authority of the Brussels Treaty 
Organisation to ensure that these undertakings are 
observed. 

List Appended to the Declaration by the Federal 
Chancellor 

This list comprises the weapons defined in paragraphs 
I to VI and the factories earmarked solely for their pro- 
duction. All apparatus, parts, equipment, installations, 
substances and organisms which are used for civilian 
purposes or for scientific, medical and industrial research 
in the fields of pure and applied science shall be excluded 
from this definition. 

I. Atomic iceapons 

Text as in Annex II paragraph I to Article 107 of 
the EDC Treaty with the deletion of (c). 

II. Chemical weapons 
III. Biological iceapons 
IV. Long distance tnissilcs, 

guided missiles, 

magnetic and influence 

mines 

V. M'arships, tcith the exception of smaller ships for 
defence purposes 

"Warships, with the exception of smaller ships for 
defence purposes are: 
(a) Warships of more than 3,000 tons displacement. 

(b) Submarines of more than S.'JO tons displace- 
ment. 

(c) All warships which are driven by means other 
than steam, Diesel or petrol engines or by gas tur- 
bines or by jet engines". 

VI. Bomber aircraft for strategic purposes 

The closest possible co-operation with Nato 
shall be established in all fields. 



Texts as in Annex II, 
paragraphs II, III 
and IV to Article 107 
of the EDC Treaty. 



Results off London Conference 

Statciiiitit hi) Secretary Dulles' 

The London Conference produced solid results. 
It worked out a system, in place of the European 
Defense Community, which can preserve and 
strengthen the Atlantic community by giving it a 
hard core of lOuropean unity. Thus, It salvages 
many of the values of the Koc plan and will give 
opportunity for the otlicr values to be achieved by 
furlher effort. The fact that all of this was done, 
and done within 33 days of the rejection of Edc, 
shows the vitality of the Atlantic community. 
Under this new plan : 

German sovereignty will be restored, and begin- 
ning today the Allied High Commissioners will 
forego tlie exercise of most of their occupation 
rights. 

Germany will join Nato and make its indispensa- 
ble contribution to the defense of the West. This 
will be done within a Continental .system of arma- 
ment controls. 

Western unity will be developed within the 
framework of the Brussels Treaty. The treaty 
members will become identical with the projected 
membership of Edo, the United Kingdom being an 
additional member. Their Council will have broad 
authority and can act in many important matters 
by a majority vote. Thus national authority gives 
way to European authority. 

The United Kingdom has made a momentous 
long-term commitment of its military forces to the 
continent of Eurojje. 

JIuch of what was agreed on will, of course, re- 
quire further approvals by other nations and by 
parliaments. 

When I went to London, I said that the initiative 
rested with the European powers.' They had exer- 
cised that initiative. 

The result is what the Europeans decided on for 
themselves. The United States will, I hope, co- 
operate with the result, because to do so will be very 
much in our national interests. 



' Made at Washington National Airport on Oct. 4 
(press release 547). 
' BtnxETiN of Oct. 4, 1954, p. 489. 



III. United States, United Kingdom and Canadian 
Assurances 

The United States Secretary of State set forth 
the willingness of the United States to continue 
its support for European unity, in accordance 
with the following statement. 

If, using the Brussels Treaty as a nucleus, it is possible 
to find in this new pattern a continuing hope of unity 
among the countries of Europe that are represented here, 



October 11, 1954 



519 



and if the hopes that were tied into the European De- 
fense Community Treaty can reasonably be transferred 
into the arrancrements which will be the outgrowth of 
this meeting, then I would certainly be disposed to recom- 
mend to the President that he should renew the assurance 
offered last spring in connection with the European De- 
fense Community Treaty to the effect that the United 
States will continue to maintain in Europe, including 
Germany, such units of its armed forces as may be neces- 
sary and appropriate to contribute its fair share of the 
forces needed for the joint defense of the North Atlantic 
area while a threat to the area exists and will continue 
to deploy such forces in accordance with agreed North 
Atlantic strategy for the defense of this area. 

The United Kingdom confirmed its active par- 
ticipation in the Brussels Treaty Organisation and 
gave the follo^Ying assurance about tlie mainte- 
nance of United Kingdom forces on the continent 
of Europe. 

The United Kingdom will continue to maintain on the 
mainland of Europe, including Germany, the effective 
strength of the United Kingdom forces now assigned 
to Saceur, four divisions and the Tactical Air Force, 
or whatever Saceur regards as equivalent fighting ca- 
pacity. The United Kingdom undertakes not to with- 
draw those forces against the wishes of the majority 
of the Bru.ssels Treaty Powers, who should take their 
decision in the knowledge of Sacexjb's views. 

This undertaking would be subject to the understand- 
ing that an acute overseas emergency might oblige Her 
Majesty's Government to omit this procedure. 

If the maintenance of United Kingdom forces on the 
mainland of Europe throws at any time too heavy a strain 
on the external finances of the United Kingdom, the 
United Kingdom will invite the North Atlantic Council 
to review the financial conditions on which the forma- 
tions are maintained. 

Canada reaffirmed in the following statement 
its resolve to discharge the continuing obligations 
arising out of its membership in Nato and its sup- 
port of the objective of European unity. 

As far as we are concerned, the North Atlantic Treaty 
Organisation remains the focal point of our participation 
in collective defence and of our hope for the development 
of closer cooperation with the other peoples of the Atlan- 
tic community. As such, it remains a foundation of Ca- 
nadian foreign policy. While we emphasise, then, our 
belief in the North Atlantic Treaty Organisation we wel- 
come the proposed extension of the Brussels Treaty. We 
shall look forward to a growing relationship, within the 
framework of Nato, with the new Briissels Treaty Or- 
ganisation, composed of countries with whom we are 
already bound by such close ties. 

IV. NATO 

Tlie powers present at tlie Conference which 
are members of Nato agreed to recommend at the 



next ministerial meeting of the North Atlantic 
Council that the Federal Eepublic of Germany 
should forthwith be invited to become a member. 
They further agreed to recommend to Nato that 
its machinery be reinforced in the following 
resi^ects : 

(a) All forces of Nato countries stationed on 
the Continent of Europe shall be placed under 
the authority of Saceue, with the exception of 
those which Nato has recognised or will recognise 
as suitable to remain under national command. 

(b) Forces placed under Saceur on the Conti- 
nent shall be deployed in accordance with Nato 
strateg)'. 

(c) The location of such forces shall be deter- 
mined by Sacetjr after consultation and agree- 
ment with the national authorities concerned. 

(d) Such forces shall not be redeployed on the 
Continent nor used operationally on the Conti- 
nent witliout his consent, subject to appropriate 
political guidance from the North Atlantic Coun- 
cil. 

(e) Forces placed under Saceur on the Conti- 
nent shall be integrated as far as possible con- 
sistent with military efficiency. 

(f ) Arrangements shall be made for the closer 
coordination of logistics by Saceur. 

(g) The level and effectiveness of forces placed 
under Saceur on the Continent and the arma- 
ments and equipment, logistics, and reserve for- 
mations of those forces on the Continent shall be 
inspected by Saceur. 

The Conference recorded the view of all the 
govermnents represented that the North Atlantic 
Treaty should be regarded as of indefinite dura- 
tion. 

V. Declaration by the German Federal Government 
and Joint Declaration by the Governments of France, 
United Kingdom and United States of America 

The following declarations were recorded at the 
Conference by the German Federal Chancellor 
and by the Foreign INIinisters of France, United 
Kingdom and United States of America. 

Declaration by German Federal Republic 

The German Federal Republic has agreed to 
conduct its policy in accordance with the prin- 
ciples of the Charter of the United Nations and 
accepts the obligations set forth in Article 2 of 
the Charter. 



520 



Department of State Bulletin 



Upon lier accession to the Nortli Atlantic Treaty 
and tlie Brussels Treaty, the German Federal Re- 
public declares that she will refrain from any 
action inconsistent with the strictly defensive 
character of the two treaties. In particular the 
Gennan Federal Republic undertakes never to 
have i-ecouree to force to achieve the reunification 
of Germany or the modification of the present 
boundaries of the Gernum Federal Republic, and 
to resolve by peaceful means any disputes which 
may arise between the Federal Republic and other 
States. 

Declaration hy the Governments of United States 
of America, United Kingdom and France 

The Governments of the United States of Amer- 
ica, the United Kingdom of Great Britain and 
Northern Ireland and the French Republic, 

Beino; resolved to devote their eft'orts to the 
strengthening of peace in accordance with the 
Charter of the United Nations and in particular 
with the obligations set forth in Article 2 of the 
Charter 

(i) to settle their international disputes by 
peaceful means in such a manner that in- 
ternational peace and security and justice 
are not endangered; 

(ii) to refrain in their international relations 
from the threat or use of force against 
the territorial integrity or political inde- 
pendence of any State, or in any other 
manner inconsistent with the purposes of 
the United Nations; 

(iii) to give the United Nations every assist- 
ance in any action it takes in accordance 
with the Charter, and to refrain from giv- 
ing assistance to any State against which 
the United Nations take preventive or en- 
forcement action; 

(iv) to ensure that States which are not Mem- 
bers of the United Nations act in accord- 
ance with the principles of the Charter so 
far as may be necessary for the mainte- 
nance of international peace and security. 

Having regard to the purely defensive character 
of the Atlantic Alliance which is manifest in the 
North Atlantic Treaty, wherein they reaffirm 
their faith in the purposes and principles of the 
Charter of the United Nations and their desire 



to live in peace with all peoples and all Govern- 
ments, and undertake to settle their international 
disi)utes by peaceful means in accordance with the 
principles of the Charter and to refrain, in accord- 
ance with those principles, from the threat or use 
of force in their international relations, 

Take note that the German Federal Republic 
has by a Declaration dated October 3rd accepted 
tlie obligations set forth in Article 2 of the Char- 
ter of the United Nations and has undertaken 
never to have recourse to foice to achieve the 
reunilication of Germany or the modification of 
the present boundaries of the German Federal Re- 
public, and to resolve by peaceful means any dis- 
putes which may arise between the Federal Re- 
public and other states: 

Declare that 

1. They consider the Government of the Federal 
Republic as the only German Government freely 
and legitimately constituted and therefore en- 
titled to speak for Germany as the representative 
of the German people in international aifairs. 

2. In their relations with the Federal Republic 
they will follow the principles set out in Article 2 
of the United Nations Charter. 

3. A peace settlement for the whole of Germany, 
freely negotiated between Germany and her for- 
mer enemies, which should lay the foundation of a 
lasting peace, remains an essential aim of their 
policy. The final determination of the bound- 
aries of Germany must await such a settlement. 

4. The achievement through peaceful means of 
a fully free and unified Germany remains a fun- 
damental goal of their policy. 

5. The security and welfare of Berlin and the 
maintenance of the position of the Three Powei-s 
there are regarded by the Three Powers as essen- 
tia] elements of the peace of the free world in the 
present international situation. Accordingly 
they will maintain armed forces within the terri- 
tory of Berlin as long as their responsibilities re- 
quire it. They therefore reaffirm that they will 
treat any attack against Berlin from any quarter 
as an attack upon their forces and themselves. 

6. They will regard as a threat to their own 
peace and safety any recourse to force which in 
violation of the principles of the United Nations 
Charter threatens the integrity and unity of the 
Atlantic alliance or its defensive purposes. In the 
event of any such action, the three Governments, 



October 11, 1954 



521 



for their part, will consider the offending govern- 
ment as having forfeited its rights to any guar- 
antee and any militai-y assistance provided for in 
the North Atlantic Treaty and its protocols. They 
will act in accordance with Article 4 of the North 
Atlantic Treaty with a view to taking other 
measures which may be appropriate. 

7. They will invite the association of other 
member States of the North Atlantic Treaty Or- 
ganisation with this Declaration. 



VI. Future Procedure 

The Conference agreed that representatives of 
the governments concerned should work out ur- 
gently the texts of detailed agreements to give 
effect to the principles laid down above. These 
will be submitted, where appropriate, to the North 
Atlantic Council, and to the four Governments 
directly concerned with the future status of the 
Federal Kepublic. The Conference hoped that it 
would be possible to hold a ministerial meeting 
of the North Atlantic Council on October 22 to 
decide on the arrangements affecting IS.' ato. This 
will be preceded by meetings of the four Foreign 
Ministers on the question of German sovereignty 
and of the nine Foreign Alinisters. 

These agreements and arrangements constitute 
a notable contribution to world peace. A West- 
ern Europe is now emerging which, resting on 
the close association of the United Kingdom with 
the Continent and on growing friendship between 
the participating countries, will re-inforce the 
Atlantic community. The system elaborated by 
the Conference will further the development of 
European unity and integration. 



ANNEX 

Draft Declaration and Draft Protocol 
to Brussels Treaty 

The Governments of Belgium, France, Luxembourg, the 
Netherlands and the United Kingdom, parties to the 
Brussels Treaty of March 17, 1948, for collaboration in 
economic, social and cultural matters and for legitimate 
collective self-defence, 

Aware that the principles underlying the association 
created by the Brussels Treaty are also recognised and 
applied by the Federal Republic of Germany and Italy, 

Noting with satisfaction that their devotion to pence 
and their allegiance to democratic institutions constitute 
common bonds between the countries of Western Europe, 

522 



Convinced that an association with the Federal Republic 
of Germany and Italy would represent a new and sub- 
stantial advance in the direction already indicated by the 
treaty. 

Decide, 

In application of Article IX of the treaty, to invite the 
Federal Republic of Germany and Italy to accede to the 
Brussels Treaty, as revised and completed by the protocol 
(and list of agreements and documents to be specified in 
the final text). 



DRAFT PROTOCOL TO THE BRUSSELS TREATY 

H. M. King of the Belgians, the President of the French 
Republic, President of the French Union, H. R. H. the 
Grand Duchess of Luxembourg, H. M. the Queen of the 
Netherlands, H. M. the Queen of the United Kingdom of 
Great Britain and Northern Ireland and of her other 
realms and territories, head of the Commonwealth, parties 
to the Treaty of Economic, Social and Cultural Collabora- 
tion and Collective Self-Defence, signed at Brussels on 
March 17, 1948, hereinafter referred to as the treaty, on 
the one hand, 

And the President of the Federal Republic of Germany 
and the President of the Italian Republic on the other 
hand, 

Inspired by a common will to strengthen peace and 
security, 

Desirous to this end of promoting the unity and of 
encouraging the progressive integration of Europe, 

Convinced that the accession of the Federal Republic 
of Germany and the Italian Republic to the treaty will 
represent a new and substantial advance towards these 
aims: 

Article I 

The Federal Republic of Germany and the Italian Re- 
public hereby accede to the treaty, as revised and com- 
pleted by the present protocol (and the list of agreements 
and documents). 

Article II 

(A) The subparagraph of the preamble to the treaty 
"to take such steps as may be held necessary in the event 
of renewal by Germany of a policy of aggression" shall 
be modified to read : 

"To promote the unity and to encourage the progressive 
integration of Europe." 

(B) The following new article shall be inserted in the 
treaty as Article IV : 

"IV. In execution of the treaty, the high contracting 
parties and any organs established by them under the 
treaty shall work in close cooperation with the North 
Atlantic Treaty Organization." 

The present Article IV of the treaty and the succeeding 
articles shall be renumbered accordingly. 

(C) Article VIII. formerly Article VII, of the treaty, 
shall read : 

"For the purpose of consulting together on all questions 
dealt with in the present treaty and its protocol and the 
agreements and other documents set out in Article I above 
and of strengthening peace and security and of promoting 



Department of State Bulletin 



unit}- and of encouraging the proRresslve integration of 
Kumpe and closer cooporation between nieiul)er states 
ami witli otlier Kuropean organisations, tlie liigh eontract- 
InK parties will create a conncil, which shall he so or- 
^'anised as to he ahle to exercise its functions continu- 
ously. The council shall meet at such tlmea as it shall 
deem fit. 

"At the request of any of the hijjh contracting parties, 
the council shall be immediately convened In order to per- 
mit the hijjh contracting parties to consult with re^-ard to 
any situation which may constitute a threat to peace, in 
whatever area this threat should arise, or with regard to 
any situation constituting a danger to economic stability." 

Abticle III 

The present protocol and the aRreements set out in 
Article II above shall be ratilled and the Instruments of 
ratification shall be deposited as soon as possible with 
the Belsian Government. They shall enter into force 
upon the date of deposit of the last instrument of rati- 
fication. 



ANNEX 



Statement by the United States Secretary of State 
(The Hon. John Foster Dulles) at the Fourth Ple- 
nary Meeting [September 29] 

At the time when we thought that the European 
Defense Community Treaty would promptly be 
put to a vote of the French Parliament — that was 
some time last spring — the United States indi- 
cated that it would be prepared to make a dec- 
laration with respect to its intentions as to the 
maintenance of armed forces in Europe in the 
event that the European Defense Community 
Treaty should come into force. The text of that 
message ^ was communicated to the six nations 
that were signatory to the European Defense Com- 
munity Treaty, and also to the United Kingdom. 
The essence of that declaration was that the 
United States would continue to maintain in 
Europe, including Germany, such units of its 
armed forces as may be necessary to contribute its 
fair share of the forces needed for the joint defense 
of the North Atlantic area while the threat to that 
area exists, and that we would continue to main- 
tain such forces in accordance with the agreed 
North Atlantic strategy for the defense of this 
area. There were other provisions of that declara- 
tion. In fact, there were six, one of which related 



' Bulletin of Apr. 26, 1954, p. 619. 
Ocfober 7 J, 1954 



to treating the North Atlantic Treaty as a treaty 
of indefinite duration, rather thmi only for a fixed 
period of years. 

I do not need, I tiiink, to read the full text of 
that declaration, because it has, as I say, been 
communicated to all of the governments who are 
rcprcsenteil here. You doubtless are already fa- 
miliar with, and can readily consult, the text which 
was sent to you at that time. That declaration 
was made, as I say, in anticipation of the coming 
into force of the European Defense Community 
Treaty. The declaration was made after consul- 
tation with tlie leaders of both parties in the Con- 
gress of the United States. It would have been 
as solemn and definitive an obligation as the 
United States is constitutionally capable of mak- 
ing in this matter. 

I should perhaps explain that under our con- 
stitutional system the President of the United 
States is Commander in Chief of the Armed 
Forces of the United States and, as such, has the 
right to determine their disposition. That is a 
right which cannot be impaired by action of the 
Congress. Also, while Congi-ess has no authority 
to deprive the President of his right as Comman- 
der in Chief of the Armed Forces to make such 
disposition of those forces as he believes to be in 
the interest of the security of the United States, 
it is equally the case that one President of the 
United States is not constitutionally able to bind 
his successors in this matter. 

Each President of the United States comes into 
office enjoying the right to dispose of the armed 
forces of the United States as he thinks best serves 
the interests of the United States in accordance 
witli the advice which he gets from his military 
advisers. 

Therefore it is not constitutionally possible for 
the United States by treaty, by law, or in any 
other way to make a legally binding, fixed com- 
mitment to maintain any predetermined quota of 
armed forces in any particular part of the world 
for any particular period of time. 

It is nevertheless possible for the President to 
define a policy which in his opinion makes it ap- 
propriate to maintain certain elements of the 
armed forces of the United States in certain areas 
in pursuance of that policy. And if the policy is 
a basic and fundamental one, it is extremely un- 
likely that that allocation of forces would be al- 
tered. Now, this declaration that I refer to was 



523 



designed to involve an exercise, to the fullest 
degree possible under our constitutional system, of 
the determination of our Government to support 
the European Defense Community bj' contributing 
armed forces which would be subject to integration 
with its forces, and that declaration was made with 
the confidence that the policy that it reflected 
would be pursued because of the very great interest 
which the United States has in the creation of 
unity in Europe, and the fact that our Nation 
has historically shown its willingness to make tre- 
mendous contributions if, in its opinion, that will 
aid in the real unification of Europe. 

I might recall that the European Recovery 
Plan — the Marshall plan as it was called — was 
made pursuant to a congressional act which said 
that the purpose was to projnote the unification of 
Europe. The North Atlantic Treaty was an en- 
gagement which was quite unprecedented for the 
United States. It was quite unprecedented for 
the United States to make that kind of long-range 
alliance with other countries. That was directly 
contrary to our earlier policies which had been 
pursued for over 100 years. That action was taken 
only after the European countries themselves had 
first come together under this Brussels Treaty 
which we are talking about so much today. It was 
the encouragement which came from that which 
very largely led to our going on and joining in 
the commitments of the North Atlantic Treaty. 

The first action taken to provide military aid to 
Europe was under the Military Defense Assistance 
Act of 1949. The language of it was that it was 
designed to promote the integration of the defense 
of Europe. I think that the history of our action, 
both our positive action and negative action, shows 
that we respond in many ways like a barometer 
to the climate which exists in Europe. If the cli- 
mate is one of unity and cohesion, our assistance 
and aid of every kind goes out. If the climate is 
one of dissension, disunity, revival of threats of 
war, perpetuation of the cycle of recurrent war, 
then our tendency is to withdraw. Tlie declara- 
tion which we felt able to make in support of the 
Eurojiean Defense Community was on the assump- 
tion that tliat was a permanent act which would 
tie together organically tlie countries of Europe 
which in the past have been separate and among 
whom war has been bred. We felt that it tied 
them together so iiermanently, so organically, that 
we could regard that old chapter as a closed chap- 



ter and could hopefully commit our strength to 
Europe in the confidence that our soldiers over 
here in Europe wotild be in a structure which was 
safe and sound, that we were not putting our troops 
in the midst of what has historically been the 
world's worst fire hazard. 

Now, a committal of that character is not lightly 
made, and I would say in all frankness that as the 
situation stands today it would not be possible for 
the President of the United States to renew that 
committal. Tliere has been a great wave of dis- 
illusionment wliich has swept over the United 
States, and it is pai-ticularl}' manifest in the Con- 
gress — a great wave of disillusionment over what 
has happened, and a feeling that, after all, the sit- 
uation in Europe is pretty hopeless and the United 
States had better not make any long-term com- 
mittals to be part of it. 

That conclusion is so disastrous in my opinion 
both for the nations of Europe and for the United 
States that I hope most ardently that what is done 
here will make it possible to come to a different 
conclusion, and that it will change the atmosphere, 
the feeling, in tlie United States to a degree which 
will permit of a renewal of the pledge by the 
United States to maintain in Eiu'ope such elements 
of its armed forces as may be necessary or appro- 
priate to contribute our fair share of what is 
needed for the common defense of this North At- 
lantic area while the threat to that area exists. I 
cannot say at this moment that a renewal of that 
commitment is possible. I can say, and must re- 
peat, that, as things stand today, it is not possible. 
But if, out of the elements of the situation with 
which we are dealing — if, using the Brussels 
Treaty as a nucleus, it is possible to find in this 
new pattern a continuing hope of unity among the 
countries of Europe that are represented here, and 
if the hopes that were tied into the European De- 
fense Community Treaty can reasonably be trans- 
ferred into the arrangements which will be the 
outgrowth of this meeting, then I would certainly 
be disposed to recommend to the President that he 
should renew a pledge comparable to that which 
was offered in connection with the European De- 
fense Community Treaty. 

Obviously the context of the pledge would have 
to be changed, because in the form in which it was 
given it related distinctively to the European De- 
fense Community Treaty. 

Just what rejjhrasing would be required to give 



524 



Deparfment of Slafe Bulletin 



it the new look tlmt would be appropriate to the 
new situation, that is a matter which I have not 
studied and which could not usefully be studied 
until we know whether or not a promise of fjenuino 
and durable unity will come oiit of the delibera- 
tions of this gathering and those which may suc- 
ceed it. 

That, Mr. Chairman, is as clear a statement as 
I can make today of the position of my Govern- 
ment in relation to this matter. We are extremely 
anxioTis to contribute all that we can from a mate- 
rial and constitutional standpoint to promote the 
kind of unification which will above all ciul a 
situation which has led to recurrent wars which 
have weakened and ilrained the Western nations 
so that our whole Western civilization is in jeop- 
ardy as never before in a thousand years. 

In reason you can count on us. I think that 
what we have done since the end of the war in 
terms of economic contribution, militarj' contri- 
butions, the willingness to contribute our best and 
ablest brains in terms of both military and eco- 
nomic matters, all of that I think is a proof which 
cannot be challenged as to what our disposition is 
in this matter. You can be confident that that dis- 
position will be reflected by genuine support to the 
extent that is appropriate if there is, on this side, 
the movement toward unity, if there is a beacon 
light still ahead, if we do not feel that we have 
come to a watershed where efforts toward unity 
finally are ended and we are going down on the 
other side into the abyss of continuing disunity. 
I do not think that is going to happen. If it does 
not happen, then you can count on the United 
States' acting in support of what the European 
countries do. I believe that you will find that the 
American flag, with all it symbolizes, will con- 
tinue to fly alongside of your own here in Europe. 



Statement by the United Kingdom Secretary of 
State (The Rt. Hon. Anthony Eden, M. P.) at the 
Fourth Plenary Meeting [September 29J 

Gentlemen, I think we all feel that we have just 
listened to a statement from the United States 
Secretary of State of very rare quality and much 
valued frankness. What he has said to us, those 
of us who are European, is I think all that in 
present conditions we could possibly expect from 
the United States. 



As we survey these post-war years we, I fear, 
too readily at times take for granted what this 
generous brother has done for us in Europe at a 
time when but for his help all must have collapsed 
in confusion and, perhaps, into communism also. 
On behalf of tlie country I represent here, 1 would 
like to assure him that what the United States has 
done are not— "All good deeds past, forgot as 
soon as done" — but will be remembered with 
thankfulness, and not for our own sakes alone. 
So I would like to tell Mr. Foster Dulles that the 
words he has said, so far as our Government are 
concerned, will be examined with gratitude and 
with understanding, and that we shall do our 
best — I believe this conference will do its best — 
to prove worthy of that greater confidence the 
United States will show as we establish our ability 
to prove our unity and our strength. 

Now in all this I am conscious that my own 
countiy has a part to play. I do not want to go 
back over the full history of past declarations and 
past undertakings, though there are perhaps one 
or two that I ought to mention if the setting of 
what I want to say this afternoon is to be under- 
stood. We gave, as the United States Govern- 
ment gave, a series of undertakings to the Edc. 
AVe gave them by treaty, we gave them by agree- 
ment, we gave them by declarations, and, as I 
have already informed my colleagues, we stand by 
those undertakings and we are ready to reaffirm 
them. They are not, I think, unimportant, but 
some of them are, it is true, inapplicable in the 
absence of Edc. Some of those that have as a result 
of the disappearance of Edc now disappeared 
may, and probably will, be covered by the pro- 
posals which this conference is now considering. 
The provision of automatic military assistance, 
for instance, which was contained in our treaty 
with Edc will be reproduced, I trust, by the pro- 
posed enlargement of the Brussels Treaty. Co- 
operation between the armed forces ; the deploy- 
ment and integration of those forces; consulta- 
tion about the level of forces, will all now take 
place, though perhaps within a different frame- 
work. 

I am very conscious, and so are my colleagues, 
that there is one particular plane on which many 
of you here would wish us to make our position 
clearer, and where, if we were able to do so, it 
might assist the work of this conference. This 
relates to the maintenance of British forces on the 



October 7 J, 1954 



525 



continent of Europe, and in respect of that I have 
a new proposal to put to my colleagues. The 
United Kingdom will continue to maintain on the 
mainland of Europe, including Germany, the ef- 
fective strength of the United Kingdom forces 
which are now assigned to Saceub — four divisions 
and the tactical Air Force — or whatever Saceuk 
regards as equivalent fighting capacity. 

The United Kingdom undertakes not to with- 
draw those forces against the wishes of the major- 
ity of the Brussels Treaty Powers, who should 
take their decision in the knowledge of Saceuk's 
views. This undertaking would be subject to the 
understanding that an acute overseas emergency 
might oblige Her Majesty's Government to omit 
this procedure. If maintenance of the United 
Kingdom forces on the mainland of Europe 
throws at any time too heavy a strain on the ex- 
ternal finances of the United Kingdom, then we 
would invite the North Atlantic Council to re- 
view the financial conditions on which the forma- 
tions are maintained. 

My colleagues will realise that what I have 
annoimced is for us a very formidable step to 
take. You all knoAv that ours is above all an 
island story. We are still an island people in 
thought and tradition, whatever the modern facts 
of weapons and strategy may compel. And it has 
been not without considerable reflection that the 
Government which I represent here has decided 
that this statement could be made to you this 
afternoon. I want only to add this : we are mak- 
ing it in just the same spirit as Mr. Dulles spoke 
just now, because we hope that by doing so we 
shall make a contribution to enable this confer- 
ence to succeed, and recreate confidence on this 
European continent, and make it possible for us 
to show an example of unity to the world. Of 
course, you will understand that what we have 
just said, and the undertaking we are prepared to 
give, does depend on the outcome of our work. 
If we succeed here, then this undertaking stands ; 
if we do not, H. M. Government could not regard 
itself as committed to what I have said this 
afternoon. That applies to the whole of our woi'k, 
all the work that we are doing here. So I can 
only conclude by saying I hope the conference will 
consider that what we have said will be a con- 
tribution to bring us at least a stage nearer the 
successful conclusion of our labours. 



Statement by the Canadian Minister for External 
Affairs (The Hon. Lester Pearson) at the Fourth 
Plenary Meeting [September 29] 

Mr. Chairman, this item on the agenda, which 
I apologise for returning to — item 5 — is headed 
"United Kingdom and United States Declara- 
tions." I assume that under it I would be quite 
in order in expressing great appreciation for the 
statements which have been made by you and by 
Mr. Dulles this afternoon, and I hope I would 
not be ruled out of order if I make a short declara- 
tion on behalf of my own country. 

Your statement, Mr. Chairman, if I may say so, 
was one of historic importance. If it is thought, 
as it sometimes is, that the United Kingdom looks 
across the Channel more intensely in war than in 
peacetime, that feeling certainly must have been 
removed by your statement earlier this afternoon. 
To me it was all the more impressive because I 
recognise that the source of the power and the 
glory of this island has been its vision across the 
seas. 

The statement of Mr. Dulles was also impor- 
tant, not only for the development of European 
unity but for that larger Atlantic Connnunity de- 
velopment with which we are all concerned. In- 
deed, as I see it, European unity cannot be ef- 
fectively secured miless the lines not only across 
the Channel but across the Atlantic are strong and 
unbroken. My country has a part to play in this 
Atlantic aspect of the problem. Therefore, we 
accept the continuing obligations arising out of 
our membership of the North Atlantic Treaty 
Organization, and we are resolved to continue to 
do our best to discharge them. The disappearance 
of Edc does not, we think, affect those obliga- 
tions, because Edc — though we were indeed dis- 
appointed in its disappearance — because Edc, 
as we saw it, was a means to an end and not an end 
in itself. We are here to find an alternative 
method to accomplish the same purpose. That 
alternative method, that alternative arrangement, 
must include the association of Germany not only 
with the defence of Europe and the West, but — 
and this is, I am sure, equally important — with the 
development of the Atlantic Community ; an asso- 
ciation to be brought about in such a way that the 
fears that we have inlierited from the unhappy 
past will be replaced by a new and better hoi^e for 
the future. 

So new methods are being discussed this week 



526 



Deparfment of State Bulletin 



ami new solutions aro bein_£j sought. As far as we 
are concerned, however, the Nortii Atlantic Treaty 
Organization remains the focal point of our par- 
ticipation in collective defence and of our hope 
for the development of closer co-operation with 
the other peoples of the Atlantic Community. As 
such, it remains a foundation of Canadian foreign 
polic}'. Indeed, enduring and whole-hearted sup- 
port for Nato is for us a policy above politics on 
which I think our friends can rely. 

That support in defence niattere is now worked 
out each year by consultation through the ap- 
propriate agencies of our organization — that is, 
Nato. Apart from mutual aid, it now takes the 
form of naval forces, an infantry brigade group, 
and an air division of 12 jet fighter squadrons sta- 
tioned in Europe. We will continue to assist in 
the common defence through the existing Nato 
procedures until better ones are agreed on. The 
presence of these Canadian forces on the Euro- 
pean continent is not only a measure of our mili- 
tary contribution to the common defence but an 
evidence of our belief in the future of the North 
Atlantic Community. 

"While we emphasize, then, our belief in the 
North Atlantic Treaty Organization, we welcome 
the proposed extension of the Brussels Treaty. 
We shall look forward to a growing relationship 
within the framework of Nato to the Brussels 
Treaty countries with whom we are bound by such 
close ties. 

We are sure, and I hope our confidence will be 
realized — I know it will — that these new arrange- 
ments through Brussels can be developed without 
weakening or diminishing Nato in any way in its 
essential functions, because Nato, with Ger- 
many associated with it under agreed arrange- 
ments, should, we think, be a stronger force than 
ever against war, and for the progressive develop- 
ment of the Atlantic Community. 

We are also certain, Mr. Chairman, that in this 
development the United States, which has played 
such a magnificent, generous, and indeed essential 
part, will continue to be able to do so. Mr. Dulles 
has given us hope in that regard this afternoon. 

We Canadians, being neighbours of the United 
States, know as well as anybody else that that 
country does not fail to accept and to meet, suc- 
cessfully, any great international challenge which 
faces it. We are certain that in the days ahead 
it will continue to meet the challenge of assist- 



ing in the development of European unity and the 
Atlantic Conununity — and the two go together. 

The work, then, which we are doing this week 
must, in order to succeed, nuike possible the con- 
tinued contribution of the United States to these 
great objectives. If that is done, and I know it is 
going to be done, it will also, I assure you, make 
it much easier for my own country to continue to 
do its share. 



ANNEX 



Conference Paper on a German Defence Contribu- 
tion and Arrangements To Apply to SACEUR's 
Forces on the Continent 

The nine Governments represented at the London Con- 
ference agree to instruct representatives to draw up in 
Paris, in concert with the military and civilian agencies 
of NATO through the Secretary General, detailed proposals, 
for approval by the North Atlantic Council, for a German 
defence contribution and arrangements to be applied to 
Saceue's forces on the Continent. These detailed pro- 
posals shall be based on the following principles agreed 
between the nine Governments : 

1. (a) The seven Brussels Treaty Powers will conclude 
a special agreement setting out the forces each of them 
will place under SACEim on the Continent. 

(b) The German contribution shall conform in size and 
general characteristics to the contribution fixed for the 
Edc brought up to date and adapted as necessary to make 
it suitable for Nato. 

( c ) The terms of this special agreement will be agreed 
with the other Nato countries. 

(d) If at any time the Nato Annual Review recom- 
mends an increase above the figures in the Brussels Special 
Agreement such increase will require the unanimous ap- 
inoval of the Brussels Powers expressed in the Brussels 
Council or in Nato. 

(e) The Brussels Powers will ask that arrangements 
be made for Saceub to designate a high-ranking officer 
who will be instructed to transmit regularly to the Brus- 
sels Treaty Organisation information acquired as indi- 
cated in 3 (f) below in order to permit that Organisation 
to establish that the figures agreed among the Brussels 
Powers are being observed. 

2. All forces of Nato countries stationed on the Conti- 
nent of Europe shall be placed under the authority of 
Saceiue, with the exception of the forces which Nato has 
recognised or will recognise as suitable to remain under 
national command. The strength and armaments on the 
Continent of the internal defence forces and of the police 
belonging to the members of the Brussels Treaty Organi- 
sation shall be fixed by agreements made within this Or- 



Oc/ofaer 11, 1954 



527 



ganisation, taking into account the tasli for which they 
are intended and on the basis of existing levels and needs. 
3. Arrangements to apply to Saceub's forces : 

(a) Force-S placed under Saceue on the Continent shall 
be deployed in accordance with Nato strategy. 

(b) The location of such forces shall be determined by 
SACEiTi after consultation and agreement with the national 
authorities concerned. 

(c) Such forces shall not be redeployed on the Conti- 
nent nor used operationally on the Continent without his 



consent subject to appropriate political guidance from the 
North Atlantic Council. 

(d) Forces placed under Saceur on the Continent shall 
be integrated as far as possible consistent with military 
efficiency. 

(e) Arrangements shall be made for the closer co-ordi- 
nation of logistics by Saceur. 

(f) The level and effectiveness of forces placed under 
Saceur on the Continent and the armaments, equipment, 
logistics and reserve formations of those forces on the 
Continent shall be inspected by Saceur. 



Treaty of Economic, Social and Cultural Collaboration and Collective Self-Defence^ 



BETWEEN GREAT BRITAIN AND NORTHERN IRELAND, BELGIUM, 
FRANCE, LUXEMBOURG, AND THE NETHERLANDS 



Brussels, 17th March, 1948 



His Royal Highness the Prince Regent of Belgium, 
the President of the French Republic, President of the 
French Union, Her Royal Highness the Grand Duchess 
of Luxembourg, Her Majesty the Queen of the Nether- 
lands and His Majesty The King of Great Britain, Ire- 
land and the British Dominions beyond the Seas, 

Resolved 

To reaffirm their faith in fundamental human rights, 
in the dignity and worth of the human person and in 
the other ideals proclaimed in the Charter of the United 
Nations ; 

To fortify and preserve the principles of democracy, 
personal freedom and political liberty, the constitutional 
traditions and the rule of law, which are their common 
heritage ; 

To strengthen, with these aims in view, the economic, 
social and cultural ties by which they are already 
united ; 

To co-operate loyally and to co-ordinate their efforts 
to create in Western Europe a firm basis for European 
economic recovery ; 

To afford assistance to each other, in accordance with 
the Charter of the United Nations, in maintaining inter- 
national peace and security and in resisting any iwlicy 
of aggre.ssion ; 

To take such steps as may be held to be necessary in 
the event of a renewal by Germany of a policy of 
aggression ; 

To associate progressively in the pursuance of these 
aims other States inspired by the same ideals and ani- 
mated by the like determination ; 



' Reprinted from Bui-letin of May 9, 1948. 



Desiring for these purposes to conclude a treaty for 
collaboration in economic, social and cultural matters 
and for collective self-defence ; 

Have appointed as their Plenipotentiaries : 

His Royal Highness the Prince Regent of Belgium 

His Excellency Mr. Paul-Henri Spaak, Prime Minister, 

Minister of Foreign Affairs, and 
His Excellency Mr. Gaston Eyskens, Minister of Finance, 

The President of the French Republic, President of the 
French Union 

His Excellency Mr. Georges Bidault, Minister of For- 
eign Affairs, and 

His Excellency Mr. Jean de Hauteclocque, Ambassador 
Extraordinary and Plenipotentiary of the French Re- 
public in Brussels, 

Her Royal Highness the Grand Duchess of Luxembourg 
His Excellency Mr. Joseph Bech, Minister of Foreign 

Affairs, and 
His Excellency Mr. Robert Als, Envoy Extraordinary and 

Minister Plenipotentiary of Luxembourg in Brussels, 

Her Majesty the Queen of the Netherlands 

His Excellency Baron C. G. W. H. van Boetzelaor van 
Oosterlidut. Minister of Foreign Affairs, and 

His Excellency I'.aron Binnert I'hilip van Harinxnia thoe 
Slooten, Ambassador Extraordinary and Plenipoten- 
tiary of the Netherlands in Brussels, 

His Majesty the King of Great Britain, Ireland and the 
Briti.sh Dominions beyond the Seas for the United 
Kingdom of Great Britain and Northern Ireland 



528 



Department of State Bulletin 



ThP Right Honournhle Ernest Bevin, Member of Parlia- 
ment, I'rincipul Stx'refary of State for Foroltjn AlTnlrK, 
and 

His Exceliency Sir Oeorge William Remlt-l, K. C. M. O., 
Ambassador Extraordinary and I'lenipotentlary of 
His Britannic Majesty in Brussels, 

who, liaving exhibited their full powers found in good 
and due form, have agreed as follows: 

Abticle I 

Convinced of the dose comnumity of their interests 
and of the necessity of uniting in order to promote the 
economic recovery of Europe, the High Contracting Par- 
ties will so organize and coordinate their economic 
activities as to produce the best possible results, by the 
elimination of coiifiict in their economic policies, the 
co-ordination of production and the development of com- 
mercial exchanges. 

The co-operation provided for in the preceding para- 
graph, which will be eflfwted through the Consultative 
Council referred to in Article VII as well as through 
other bodies, shall not involve any duplication of, or 
prejudice to, the work of other economic organizations 
in which the High Contracting Parties are or may be 
represented but shall on the contrary assist the work 
of those organizations. 

Abticle II 

The High Contracting Parties will make every effort 
in common, both by direct consultation and in specialized 
agencies, to promote the attainment of a higher standard 
of living by their peoples and to develop on correspond- 
ing lines the social and other related services of their 
countries. 

The High Contracting Parties will consult with the 
object of achieving the earliest possible application of 
recommendations of immediate practical interest, relat- 
ing to social matters, adopted with their approval in the 
specialized agencies. 

They will endeavour to conclude as soon as possible 
conventions with each other in the sphere of social 
security. 

Abticle III 

The High Contracting Parties will make every effort 
in common to lead their peoples towards a better un- 
derstanding of the principles which form the basis of their 
common civilization and to promote cultural exchanges by 
conventions between themselves or by other means. 

Abticle IV 

If any of the High Contracting Parties should be the 
object of an armed attack in Europe, tlie other High Con- 
tracting Parties will, in accordance with the provisions of 
Article 51 of the Charter of the United Nations, afford 
the party so attacked all the military and other aid and 
assistance in their power. 

Abticle V 

All measures taken as a result of the preceding Article 
shall be immediately reported to the Security Council. 



They .shall be terminated as soon as the Security Council 
has taken the measures necessary to maintain or re- 
store international i)eac(? and .security. 

The present Treaty does not prejudice in any way the 
obligations of the High Contracting Parties under the 
provisions of the Charter of the United Nations. It shall 
not be interpreted as affecting in any way the authority 
and responsibility of the Security Council under the 
Charter to take at any time sucli action as It deems 
necessary in order to maintain or restore international 
peace and security. 

Abticle VI 

The High Contracting Parties declare, each .so far as 
he is concerned, that none of the international engage- 
ments now in force between him and any other of the 
High Contracting Parties or any third State is in con- 
tlict with the provisions of the present Treaty. 

None of the High Contracting Parties will conclude any 
alliance or participate in any coalition directed against 
any other of the High Contracting Parties. 

Abticle VII 

For the purpose of consulting together on all the ques- 
tions dealt with in the present Treaty, the High Contract- 
ing Parties will create a Consultative Council, which shall 
be so organized as to be able to exercise its functions con- 
tinuouslj'. The Council shall meet at such times as it 
shall deem fit. 

At the request of any of the High Contracting Parties, 
the Council shall be immediately convened in order to 
liermit the High Contracting Parties to consult with 
regard to any situation which may constitute a threat to 
peace, in whatever area this threat should arise; with 
regard to the attitude to be adopted and the steps to be 
taken in case of a renewal by Germany of an aggressive 
policy ; or with regard to any situation constituting a 
danger to economic stability. 

Abticle VIII 

In pursuance of their determination to settle disputes 
only by peaceful means, the High Contracting Parties will 
apply to disputes between themselves the following pro- 
visions : 

The High Contracting Parties will, while the present 
Treaty remains in force, settle all disputes falling within 
the scope of Article 36, paragraph 2, of the Statute of the 
International Court of Justice by referring them to the 
Court, subject only, in the case of each of them, to any 
reservation already made by that Party when accepting 
this clause for compulsory jurisdiction to the extent 
that that Party may maintain the reservation. 

In addition, the High Contracting Parties will submit 
to conciliation all disputes outside the scope of Article 
36, paragraph 2, of the Statute of the International Court 
of Justice. 

In the case of a mixed dispute involving both questions 
for which conciliation is appropriate and other questions 
for which judicial settlement is appropriate, any Party 
to the dispute shall have the right to insist that the 
judicial settlement of the legal questions shall precede 
conciliation. 



October 11, 1954 

317473—54 3 



529 



The preceding provisions of this Article in no way 
affect the application of relevant provisions or agree- 
ments prescribing some other method of pacific settlement. 

Article IX 

The High Contracting Parties may, by agreement, invite 
any other State to accede to the present Treaty on con- 
ditions to be agreed between them and the State so 
invited. 

Any State so invited may become a Party to the 
Treaty by depositing an instrument of accession with 
the Belgian Government. 

The Belgian Government will inform each of the 
High Contracting Parties of the deposit of each instru- 
ment of accession. 

Aetiole X 

The present Treaty shall be ratified and the instru- 
ments of ratification shall be deposited as soon as 
possible with the Belgian Government. 

It shall enter into force on the date of the deposit of 
the last instrument of ratification and shall thereafter 
remain in force for fifty years. 

After the expiry of the period of fifty years, each of the 
High Contracting Parties shall have the right to cease 
to be a party thereto provided that he shall have previ- 
ously given one year's notice of denunciation to the 
Belgian Government. 

The Belgian Government .shall inform the Govern- 
ments of the other High Contracting Parties of the 
deposit of each instrument of ratification and of each 
notice of denunciation. 

In witness whereof, the above-mentioned Plenipoten- 
tiaries have signed the present Treaty and have aflSxed 
thereto their seals. 

Done at Brussels, this seventeenth day of March 1948, 
in English and French, each text being equally authentic, 
in a single copy which shall remain deposited in the 
archives of the Belgian Government and of which certi- 
fied copies shall be transmitted by that Government to 
each of the other signatories. 

For Belgium : 

(L. s.) P. H. Spaak. 

(L. s.) Gaston Etskens. 

For France : 

(L. S.) G. BiDAULT. 

(L. S.) J. DE HAUTECLOCQTTE. 

For Luxembourg : 
(l. s.) Joseph Bech. 
(l. s.) Robeet Als. 

For the Netherlands : 

(l. s.) W. van Boetzelaer. 

(l. s.) van Hakinxma thoe Slooten. 

For the United Kingdom of Great Britain and Northern 
Ireland : 
(l. 8.) Ernest Bevin. 
( L. 8. ) George Rendel. 



Understanding U.S. Foreign Policy 

Statement hy Under Secretary Smith ^ 

For some years I have been looking forward 
to leading what you might call a normal existence. 
But now that the time for my actual retirement 
from Government service has come, I realize how 
much I am going to miss it. 

Aside from the satisfaction one gets from try- 
ing to do something for our country, there are the 
personal htmian relationships. During more 
years of service than I like to say — in the Army, 
in the Intelligence Service, as an Ambassador in 
the field, and, finally, in the Department of State — 
I have worked with the very splendid people in 
all of those services. And I must take this oppor- 
tunity to pay tribute to the dedicated and devoted 
men and women who are serving the Government 
in and out of uniform. At the same time, I wish 
that more of our young people who are about to 
enter active life could realize the richness of ex- 
perience and the satisfaction that comes with such 
service. I feel so strongly about this that I have 
told the President and Secretary Dulles that even 
though I am retiring to private life I am myself 
ready to assist at any time and in any way I can. 

These are difficult days for our country and for 
the whole free world even though we are having 
and will have our diplomatic victories. I know 
myself that the best planning and the best execu- 
tion of planning cannot attain really good 
or really definite results without the understand- 
ing and support of the American people generally. 
And so my parting thought and indeed my appeal 
to each of you who hears me is this : 

Take a real interest in what the Department of 
State is doing to safeguard the ideals of America 
and its security throughout the world. 

Think seriously and sympathetically about the 
problems it faces in its unending task of working 
for peace and security for ourselves and for man- 
kind generally. 

If you can, take an active part in groups and 
associations dedicated to the achievement of these 
goals. 

And finally and most important of all, try to 
realize that some of the most important successes 



'Made on Oct. 1 (press release 545) on the eve of his 
retirement. 



530 



Department of State Bulletin 



in the conduct of foreign policy are those that can't 
be talked about. 

The President and his Secretary of State, who 
are charged with the direction of our foreign 
policy — I should say our nonpartisan foreign pol- 
icy, because basically it is nonpartisan — are tire- 



less in their efforts to make of this world a better 
place to live in freedom, in security, and with an 
ever-expanding opportunity for constructive and 
rewarding work. They and the career services 
which assist them deserve all you can give them 
in the way of understanding and of support. 



The American IMemorial Library— A Monument to the Spirit of Berlin 



by James B. Conant 

U. S. High Commissioner for Oermxiny ' 



When, 2 years ago, I came to Berlin for the first 
time after the war, the conferences I had there in- 
cluded a number of meetings with businessmen 
and trade-union leaders. At those meetings it 
was time and again pointed out to me how much 
the strength of Berlin depended on its economic 
rehabilitation. "Berlin needs orders," was what 
everyone kept telling me. Today we may state 
with some satisfaction that, despite the continuous 
influx of refugees from the East, economic con- 
ditions in Berlin are steadily improving and the 
number of unemployed is today smaller than it 
has been since the war. 

Wlien I asked what contribution the free world 
could make toward further reinforcing Free 
Berlin to enable it to fulfill its unique task, I re- 
ceived a somewhat different reply. I was told 
that Berlin should also be promoted as a cultural 
center. The building which we are dedicating to- 
day is a symbol of our joint efforts in that field. 
We all know that we must not direct our attention 
exclusively to material things, and that the ex- 
istence of Berlin as an outpost of the free world 
is guaranteed not only by a sound economy but 
above all by a prospering cultural life. We all 
are looking forward with confidence to the day 
•when Berlin will resume its proper position and 



' Traiislatiuu of an address made at the opening cere- 
monies for the American Memorial Library at Berlin on 
Sept. 17 (Hicoo press release). 



again become the capital of a Germany reunited 
in peace and freedom. Until that day it will re- 
main the duty of the free M'orld, especially of the 
Federal Republic and the three protecting powers 
which are present here, to do everytliing to re- 
inforce and support Berlin as a symbol of liberty. 
This applies not only to the economic and military 
spheres but also to the intellectual sphere. 

This library, which is located so close to the 
sector border, reminds us how important it is, at 
this time of difficulties and tensions, to remember 
the gi'eat cultural values of our free Western cul- 
ture in a divided world. This library is intended 
to show the importance of Berlin as one of the 
great intellectual centers of resistance against 
slavery. 

Cultural^Tradition'of^Berlin 

At the same time, this library is intended to 
continue the great cultural tradition of this city, 
which has for centuries played a prominent part 
in the intellectual life of Germany. In the 18th 
century King Frederick I of Prussia tried to make 
Berlin the Athens of the North. The Charlotten- 
burg Castle was built as a "little Versailles" for 
Queen Sophie Charlotte. Gottfried Leibniz 
headed the Prussian Academy. At the begimiing 
of the 18th century Johann Joachim Winckel- 
mann, the man who made a decisive contribution 
toward the understanding of Greek culture, was 



Ocfober I?, 1954 



531 



a student of a local gymnasium. Later on Fred- 
erick the Great tried to have Kant, the great 
philosopher, come to Berlin, and when during a 
cabinet meeting he received word that Johann 
Sebastian Bach had come to Berlin for a visit, he 
said to his ministers : "Let us interrupt our meet- 
ing and see whether we can make old Bach play 
for us." 

I would like to recall to your mind the cultural 
life of Berlin in the 19th century, when the famous 
Friedrich-Wilhelm University was founded and 
Wilhelm von Humboldt was Prussian Minister of 
Education. His famous brother, Alexander von 
Humboldt, the scientiest and explorer, is also not 
forgotten. 

And who could forget the names of those who 
helped shape the cultural and intellectual life of 
Berlin in this century : Friedrich Meinecke, the 
historian ; Karl Justi, the expert on the history of 
art; Alfred Kerr, the art critic; the great Max 
Liebermann; Else Lasker-Schuler, the poetess; 
and Kurt Tucholsky, just to name a few. 

But these impressive cultural achievements of 
Berlin in the past should not lead us to forget the 
present. All those who come to Berlin are sur- 
prised to see that the cultural life of Berlin is so 
vigorous despite all this city went through, despite 
all the distress and restrictions which result from 
its island position. Xo other German city has so 
many theaters, opera houses, universities, libraries, 
etc. No other German city has attracted since the 
war so many artists from all over the world as has 
Berlin on the occasion of its Festival Weeks. The 
Free University of Berlin was founded despite, or 
even as a result, of the blockade. The Berlin Phil- 
harmonic OrchcvStra is one of the most famous or- 
chestras in the world. The compositions of Boris 
Blacher, director of the Berlin conservatory, have 
become known in countless other countries; his 
newest composition was recently played for the 
first time in America. His predecessor, Werner 
Egk, is equally responsible for Berlin's reputation 
as a city of music. 

Most of the schools of Berlin have been recon- 
structed and offer thousands of refugee children 
an education in an atmosphere of freedom. The 
Teclmical University has steadily gained in impor- 
tance and its reconstruction is making good prog- 
ress. The students and professors of the Free 
University are doing pioneer work in developing 
new methods of education. The School for Peda- 



gogics, the School of Fine Arts, and the School 
of Political Science are in every respect the equals 
of similar institutions in the Federal Republic. 
Finally, within the framework of this understand- 
ably incomplete enumeration, I would like to refer 
to the reconstruction of a large part of the Berlin 
Art Library. It would be futile to try to name all 
those who contributed toward the cultural resurg- 
ence of Berlin; however, the Senator for Public 
Education, Professor Dr. Tiburtius, and his pre- 
decessor, the late Stadtrat May, must not go with- 
out mention. 



Origin of Library Plan 

Today we are dedicating a library which, we 
hope, will take its place among the great cultural 
institutions of Berlin. It has been named the 
American Memorial Library. To whose memory 
is it dedicated ? Let me briefly recall the history 
of the plan to build this library. When in 1951 
certain Amei'ican funds were made available to the 
Berlin aid program, it was suggested that these 
funds should be used above all for projects of cul- 
tural importance. Thus, shortly after the block- 
ade had been successfully ended, it was decided to 
use a part of those American funds for construct- 
ing a monument recalling German-American co- 
operation in those difficult times. 

The United States was not at all interested in 
erecting a monument to itself in Berlin, a monu- 
ment perhaps in the form of a huge eagle — the 
heraldic emblem of the United States — or some 
other colossal sculpture. What we envisaged was 
a monument to remind coming generations of the 
time when the fate of this city was the major con- 
cern of all nations of the free world, of the time 
when Americans could work and fight together 
with the brave Berliners to break the ring of slav- 
ery which threatened to strangle the city. We in- 
tended to create a monimient of permanent value, 
not so much in the material sense, but a monument 
to the spirit this city displayed in those days of 
extreme crisis. A German-American Committee 
was set up to determine the most appropriate use 
to be made of these funds. That Committee con- 
sisted of representatives of the city council, of in- 
dustry, the ti-ade unions, and of education. I am 
especially pleased that it chose a library. 

The unnatural division of the city was responsi- 
ble for the insufficient number of libraries avail- 



532 



Department of Stale Bulletin 



able to Berliners. Naturally, East Berlin has its 
labraries too, but everyone knows that the reader 
there is limited in his intellectual fare solely to 
that provided by a single totalitarian regime. 

The difference between Communist libraries 
and the libraries of the free West is the difference 
between a culture based on the totalitarian prin- 
ciple of authority and a culture based on the prin- 
ciple of fi-eedom. As long as the East-West ten- 
sion exists, as long as the world remains divided 
not only politically and economically but, above 
all, in the cultural sphere, so long will this librai-y, 
located within sight of the East, be a symbol of 
the superiority of freedom of thought over the 
spirit of slavery. I recall the words of your 
unforgettable Mayor Renter which were enclosed 
in the corneretone of this American Memorial 
Library : 

Founded at a time when the people of Berlin in the 
free part of their city defended their right to freedom 
and independence steadfastly and imperturbably, despite 
severe afliictions, this building will remind the living and 
coming generations of the unconquerable forces of the 
free spirit and moral duty. 

This library in which we have gathered has not 
been built according to traditional architectural 
plans. Certain experiences we have had in 
America with the adaptation of the library system 
to the requirements of our times have been taken 
into account. We certainly do not pretend to 
teach Europe a lesson on how to run a library. 
'WHiat we have done in planning this type of library 
is to adapt European tradition, which is much 
older than ours in the United States, to present- 
day American conditions, which, I believe, also 
exist to a large extent in Europe. 

Link With America 

Incidentally, European and American ideas 
concerning libraries were first brought together a 
hundred years ago, when the first public library 
of the United States was opened in Boston in 1854. 
The spiritus rector of that library was George 
Ticknor, of Harvard University, the University 
with which I myself had the honor of being affili- 
ated for so many years. Ticknor had traveled in 
Germany, and it was the high level of German 
public libraries which particularly impressed him 
during a protracted sojourn in this country. So 
he tried to achieve a similarly high standard for 
the future American libraries. When the plans 



Message From Secretary Dulles ' 

You are about to dedicate the American Memorial 
liibrnry, n monument raised lu lionor of the men 
who helped to keep freedom alive in Berlin. By 
doing 80 they helped to make It possible for your 
countrymen in the surrounding Soviet Zone to hold 
steadfast to the spirit of that Western civilization 
imd Christian culture wlilch binds us all together. 

The Soviet refusal to permit the reunilleatlon of 
Germany briufjs with it the danger that Communist 
ideas will find acceptance among the people of the 
Soviet Zone because they are the only ideas reaching 
them. 

No weapon against such a danger could be more 
effective than a great library. Moreover, I am 
confident that when, by unceasing efforts, a reunified 
Germany shall have been achieved, this library will 
serve as a souice of strength for the spiritual life 
of a great unified nation. 



' Delivered by Ambassador Conant to Mayor 
Walther Schreiber of Berlin on Sept. 17. 



for the public library in Boston were being pre- 
pared, a conflict developed between Ticknor and 
the then president of Harvard, Dr. Edward Ever- 
ett. Everett insisted on libraries being exclu- 
sively places of research work. Ticknor, on the 
other hand, envisaged the inclusion of popular 
literature, access to the stacks, and, in short, an 
appeal to the public at large. Fortunately the 
ideas of Ticknor prevailed and the Boston Public 
Library, the first of its type in America, became 
the predecessor of thousands of similar institu- 
tions which served the scientist as well as the 
simple citizen and student. As a boy I spent many 
hours in the Boston Public Library, and the way 
to go there was never too long for me. 

Just as a hundred years ago Ticknor took home 
German ideas to America, ideas which decisively 
influenced the American library system, thus some 
of his ideas have returned today to the country 
where they originated. 

The library which we are opening today is 
dedicated to the principle of service to the public 
at large. It applies to all strata of the population, 
to the laborer as well as to the scientist, to the 
specialist as well as to the juvenile for whom it 
establishes a first contact with the cultural inherit- 
ance of our civilization. In addition to serving 
as a remembrance of German-American coopera- 
tion at a time when this city gave proof of its will 
to freedom, this American Memorial Library will 



Oc/ober 11, 1954 



533 



serve that spirit which is best expressed by the 
words of Jefferson which are inscribed at the 
entrance to this library : 

This Institution will be based on the illimitable free- 
dom of the human mind. For here we are not afraid to 
follow truth wherever it may lead, nor to tolerate error 
so long as reason is left free to combat it. 

The present ideological differences between the 
free world and the world of slavery cannot be 
characterized more clearly. The actuality of the 
statement made by Jefferson shows that his words 
are just as valid today as they were more than 150 
years ago. And they will remain valid in the 
future. Let us face the future in that spirit of 
confidence which marks the words of Jefferson. 
Having that confidence we can rest assured that 
the day will come in which present differences 
between the East and the "West in Germany will 
be eliminated, in which the traces of temporary 
partition will have disappeared in a Germany 
reunited in freedom. 

In dedicating this library, we honor the past 
and face the future with confidence. 



U.S.-French Talks on Indochina 

Press release 542 dated September 29 

Following is the text of the commimique based 
upon the exchange of views September 27-29^ J95i, 
between Acting Secretary Sinith, M. Guy La- 
Chambre, French Minister of State for Relations 
with the Three Associated States, and M. Edgar 
Faitre, Finance Minister of France. 

Representatives of the two Governments have 
had very frank and useful talks which have shown 
the community of their views, and are in full 
agreement on the objectives to be attained. 

The conclusion of the Southeast Asia Collective 
Defense Treaty in Manila on September 8, 1954, 
has provided a firmer basis than heretofore to as- 
sist the free nations of Asia in developing and 
maintaining their independence and security. 
The representatives of France and tlie United 
States wish to reaffirm the support of their Gov- 
ernments for the principles of self-government. 



independence, justice and liberty proclaimed by 
tlie Pacific Charter in Manila on September 8, 
1954. 

The representatives of France and the United 
States reaffirm the intention of their governments 
to support the comjilete independence of Cam- 
bodia, Laos, and Viet-Nam. Both France and 
the United States will continue to assist Cambodia, 
Laos, and Viet-Nam in their efforts to safeguard 
their freedom and independence and to advance 
the welfare of their peoples. In this spirit France 
and the United States are assisting the Govern- 
ment of Viet-Nam in the resettlement of the Viet- 
namese who have of their own free will moved to 
free Viet-Nam and who already number some 
300,000. 

In order to contribute to the security of the area 
pending the further development of national 
forces for this purpose, the representatives of 
France indicated that France is prepared to retain 
forces of its Expeditionary Corps, in agreement 
with the government concerned, within the limits 
permitted under the Geneva agi'eements and to an 
extent to be determined. The United States will 
consider the question of financial assistance for 
the Expeditionary Corps in these circumstances 
in addition to supjjort for the forces of each of 
the three Associated States. These questions vi- 
tally affect each of the three Associated States and 
are being fully discussed with them. 

The channel for French and United States eco- 
nomic aid, budgetary support, and other assistance 
to each of the Associated States will be direct to 
that state. The United States representatives will 
begin discussions soon with the respective govern- 
ments of the Associated States regarding direct 
aid. The methods for efficient coordination of 
French and United States aid programs to each 
of the three Associated States are under consider- 
ation and will be developed in discussions with 
each of these states. 

After the bilateral talks, the chiefs of diplomatic 
missions in Washington of Cambodia, Laos and 
Viet-Nam were invited to a final meeting to have 
an exchange of views and information on these 
matters. The representatives of all five countries 
are in complete agreement on the objectives of 
peace and freedom to be achieved in Indochina. 



534 



Department of State Bulletin 



U. S. Relations With Latin America 



by Merwin. L. Bohan 

VJS. Representative an the Inter- American Economic and Social Cotmcil ^ 



In tliese dark days of intercontinental nimor 
and alarm, it is all too easy to forget that what 
we so assiduously seek abroad — peace and under- 
standing among nations — has already been sought 
and found in our own Western Hemisphere. In- 
deed, those of us who labor in the inter- American 
vineyard are sometimes afraid that the very fact 
that we have won our major objective in this area 
makes our people a little less conscious of the 
continued need to tend and nurture the solidarity 
that has come to characterize the relations of the 
21 American Republics — a solidarity which in the 
political as in the economic field is of vital im- 
portance to the United States. All of which 
serves as explanation for my requesting your in- 
dulgence in allowing me to spend a few minutes 
in examining what Latin America is and what it 
represents in terms of our present and future 
scheme of things. 

First as to what it is. It is a group of 20 sov- 
ereign Republics which occupy almost one-fifth 
of the world's land area. The countries compris- 
ing it range in size from Brazil, which is so big 
that it would take another Texas for the United 
States to equal it, down to little El Salvador, which 
would only make a good-sized western county. 
Differences in race are almost as notable. In some 
countries, such as Mexico, Guatemala, Peru, and 
Bolivia, Indian blood predominates; in others, 
such as Argentina and Uruguay, the population 
is almost exclusively of European origin. In still 
others, such as northeastern Brazil and in the 
coastal fringes of the Caribbean, considerable Ne- 
gro blood is to be foimd. 



' Address made before the combined service clubs at 
Madison, Wis., on Sept 21 (press release 518) . 



In fact, I sometimes wonder if we do not do 
a disservice to understanding in talking so much 
about Latin America, for it has created in our 
minds a concept of oneness and sameness which 
the facts do not bear out. Strictly speaking, there 
is no such thing as Latin America, but rather 20 
sovereign and quite individualistic peoples. Even 
among the 18 which once formed a part of the 
Spanish Empire and thus have a common tongue 
(Brazil speaks Portuguese; Haiti, French), the 
differences are clearly apparent to even the most 
superficial observer. This has been brought about 
in part by differences in racial background but 
mainly because economics has discouraged inter- 
course and communication between the countries of 
Latin America while encouraging it between each 
of those countries and Europe and the United 
States. In other words, each country — since the 
passing of such continental figures as Bolivar and 
San Martin — has worked out its destiny generally 
uninfluenced by its sister Latin American Repub- 
lics, and each has reacted, in its own individualis- 
tic fashion, to the influences which have played 
upon it from abroad. 

Those influences, down to the outbreak of World 
War I, were far stronger from Europe than from 
the United States. As late as the 1920's, drawing 
room French rather than counting house English 
was the language of polite society. Paris re- 
mained the center of the universe, and it was quite 
generally accepted that the United States was the 
land of crass materialism, home of the almighty 
dollar. 

In the brief span of 30 years, all of this has 
changed. European influence has become more 
nostalgia than substance; the dynamic forces of 
today move along lines of longitude rather than 
of latitude. 



Ocfober 17, 1954 



535 



Political Solidarity 

How has all this come about? It would be 
quite natural — but also quite inaccurate — to seek 
the answer among the cataclysmic changes of 
World War II. That conflict merely magnified 
the effects of a directional shift which began even 
before World War I, accelerated during the 1920's, 
and became dynamic in the 1930's. The triumph — 
not of North American influence but of something 
much finer that had been distilled during the thir- 
ties — inter- American understanding — came at Rio 
de Janeiro in 1942 when, under the awful shadows 
of Pearl Harbor, the American Republics threw 
in their lot together. After 1942 it could be fairly 
said that political solidarity had been achieved 
in the Western Hemisphere. 

During the war this solidarity was reflected in 
all fields. Latin American air bases played a vital 
role in the success of the North African campaign, 
radical increases were registered in the production 
of strategic materials throughout the hemisphere, 
and cooperative efforts effectively controlled 
enemy espionage and propaganda activities. 

But even before the coming of peace, the full- 
ness of that understanding was being challenged. 
Our wartime President had passed on; Sumner 
Welles, the statesman who had given substance and 
reality to the good-neighbor policy, had fallen 
from power ; and United States interests, so closely 
focused on Latin America during the early years 
of the conflict, were now dispersed on a global 
basis. 

It is not to be wondered that many of our friends 
and neighbors to the south misinterpreted our 
policies, especially in the field of economic aid 
for Europe and Asia, as indicating a cooling of 
our interest in them. The more thoughtful real- 
ized that the billions we were pouring into recon- 
struction of the war-devastated areas were pro- 
portionately as important to them as to us, 
perhaps more so since fully one-half of their for- 
eign commerce was with the areas of the world in 
which United States aid was most heavily con- 
centrated. But the caboclos of Brazil and the 
rotos of Chile no longer felt as close as they once 
did to their envied cousins in the fabulous land 
to the north. 

The currents of our relations during the post- 
war years have ebbed and flowed — never regain- 
ing the fullness of understanding achieved in the 
early forties; never deteriorating to a point where 



the gains of the late twenties and the 1930's were 
too seriously compromised, for a reciprocal appre- 
ciation of the interdependence of the countries of 
the New World has taken deep and permanent 
root in the consciousness of all Americans. 

This state of things, favorable as it is if com- 
pared to the early years of the century, is not a 
good enough example of what the New World 
has to teach the Old in terms of understanding 
and cooperation among the nations. Sustained 
improvement in our relationships, in the opinion 
of many competent authorities, depends more on 
economic than on political factors. Those that 
hold this view point out that, once suspicion of 
the United States was laid to rest in the thirties, 
political underetanding was comparatively easy 
since, revolutions and dictatorships notwithstand- 
ing, liberty and the dignity of man are basic con- 
cepts held in common by all 21 American Repub- 
lics. In the economic field the problem is more 
complicated. There are few common denomina- 
tors to bridge the gulfs that tend to separate coun- 
tries of such dissimilar stages of development and 
levels of living. 

Economic Approach 

There is much to be said for the economic ap- 
proach to better understanding. Latin America 
is in the throes of a far-reaching economic and 
social revolution. Everywhere government is 
alive to the demands for a better and a fuller 
life, and while many of the efforts to provide it 
have set in motion self-defeating inflationary pres- 
sures, the area as a whole has made giant strides 
in the last decade. 

This progress, however, merely whets desire. 
Population growth is such that further advances 
in the standard of living require a progressively 
higher rate of economic development. To achieve 
that higher rate in turn requires an ever-growing 
volume of financial resources. 

The domestic resources of the other American 
Republics have provided fully 90 percent of the 
financing of their economic development. The 
balance has come from foreign private investment 
and from public credit extended by the Interna- 
tional Bank for Reconstruction and Development 
and our own Export-Import Bank. Domestic re- 
sources, in turn, have been drawn in large measure 
from the proceeds of exports. All of which ex- 
plains the constant preoccupation of the other 



536 



Department of State Bulletin 



American Republics witli such problems as the 
prices of primary commodities, forei{;;n markets 
for export products, and financial assistance in 
the economic development process. 

Vou will recall tiiat at the Tenth Inter-Amer- 
ican Conference, held in Caracas, Venezuela, in 
ilarch of this year, the United States did not 
feel that it was in a position to come to grips 
with the major economic problems of the other 
American Republics.^ Indeed, the timing!; of the 
Caracas meeting, from the standpoint of the 
United States, was diflBcult, since several impor- 
tant aspects of our foreign economic policies were 
in the process of being defined. Dr. Milton Eisen- 
hower's report and recommendations were under 
consideration in the various interested depart- 
ments of our Government; the Randall Commis- 
sion had just reported; and Senator Capehart's 
invaluable Latin American study hiul just been 
made public. 

For these reasons, many of the countries at- 
tending the Inter- ^Vmerican Conference felt that 
a later meeting, devoted to economic problems, 
would be more fruitful of results. The United 
States concurred in this reasoning, and it was 
therefore agreed that there would be a meeting 
of ministers of finance and econom}' in Brazil in 
the fall of the present year. The definitive date 
for the meeting has since been set for November 
22. 

Preparation for Rio IVIeeting 

The Executive establishment has been deeply 
concerned with the need for making the Confer- 
ence a success, and the President, at the suggestion 
of the Secretary of State, named a sub-Cabinet 
committee shortly after the Caracas meeting to 
thoroughly review United States policies. This 
committee, under the chairmanship of Henry F. 
Holland, Assistant Secretary of State for Inter- 
American Affairs, has worked long and faithfully 
and has made every effort to develop sound posi- 
tions with respect to the problems which will be 
brought up for discussion at Rio. As has already 
been indicated, those problems will mainly con- 
cern prices, markets, and financial cooperation. 
The Latin Americans want (1) United States 
assistance in assuring fair and equitable prices 
for their raw materials; (2) assurances of stable 



' For a report on the Conference, see Bxtlletix of Apr. 
26. 10.^4, p. 634. 



tariffs and an expanding United States market for 
their products; and (.'I) financial and teciinical 
cooperation in their economic development. 

There will undoul)tedly be a different approach 
to these problems, however, than has been the 
case at previous conferences, where results were 
often judged by the quantitative production of 
resolutions and declarations couched in such gen- 
eralized language as to satisfy the most diverse 
and even conflicting views. At Rio there is every 
reason to believe that specific proposals will be 
advanced to deal with each of the more impor- 
tant economic problems. 

The most intensive preparations in the memory 
of old conference hands are being made. A 
special committee of the Inter- American Economic 
and Social Council, which is supervising the 
preparations, has met I'egularly twice a week since 
March, even during the worst of the Washington 
summer, wliich is, as many of you know, as tough 
a test of sincerity of purpose as can be devised. 
The staff of the Pan American Union has pro- 
duced an impressive series of background reports, 
while the Economic Commission for Latin Amer- 
ica, under the leadership of Dr. Paul Probisch 
and aided by a panel of Latin America's out- 
standing economists, has been hard at work in de- 
veloping material for the Conference. All of this 
in addition to individual country preparations, 
such as these I have already described in the case 
of the United States. 

There is no need for any particular crystal ball 
to forecast some of the Latin American proposals 
which will be introduced at Rio. Among them 
the following merit mention : 

1. Consultation in connection with the disposal 
of agi'icultural surpluses ; 

2. Consideration of possible measures to stabi- 
lize prices of primary products including the use 
of stockpiles to avoid extreme fluctuations in the 
prices of strategic and other mineral products ; 

3. Reduction of U.S. tariffs and avoidance of 
restrictions on the importation of Latin American 
products ; 

4. Consideration of special treatment with re- 
spect to trade for underdeveloped countries in 
order to encourage economic development; 

5. Utilization by the United States of income 
taxes collected on the operations of U.S. firms in 
Latin America to promote economic development 
in that area ; 



October 11, 1954 



537 



6. Establishment of a regional development in- 
stitution to provide loan and equity capital for 
private enterprise ; 

7. Increased credit facilities for Latin America 
by the International and Export-Import Banks ; 

8. The setting up of target amounts for yearly 
public and private investment, with public invest- 
ment making good any deficit in the quota of pri- 
vate investment. 

The foregoing are by no means all the questions 
that will be raised. The point to be kept in mind, 
however, is that specific solutions rather than gen- 
eral pronouncements will be sought at Kio. 

It is clear that we cannot wholly satisfy all these 
aspirations. In the case of prices, we have a mu- 
tual interest in satisfactory price relationships 
since this means prosperity for all concerned, but 
we certainly do not have the resources to enter 
into any global price-parity formulas or plans 
involving vast financial commitments. We can 
assist in efforts to diversify the economies of the 
Latin American countries, thus lessening depend- 
ence on one or a few export products, and possibly 
take other measures to mitigate the effects of price 
fluctuations. However, the best assurance we can 
offer of relative stability and "fairness" of price 
is to maintain the high level of United States 
economic activity which is the major factor in 
raw-material demand. 

In the field of commercial policy, our record with 
respect to Latin American products is a reassur- 
ing one. Approximately four-fifths of our im- 
ports from Latin America are on the free list and 
therefore not subject to duty, while the average 
rate on the balance is generally quite low, some- 
what under 10 percent ad valorem. In addition, 
during the past 20 years the United States has 
probably done more than any major trading coun- 
try of the world to reduce its tariffs. 

There are other strong points in our position. 
We are prepared at Eio to again reaffirm our deep 
and abiding interest in the economic development 
of our neighbors and our willingness to cooperate 
with them in that field; we are prepared to im- 
prove and expand our programs of technical co- 
operation; and to reassure them as to the avail- 
ability of sufficient public foreign credit resources 
to meet new, foreseeable needs for the financing 
of sound projects for which private capital is not 
readily available and whose financing is within 



538 



the debt-carrying capacity of the borrowmg 
country. 

Continued consideration is being given in Wash- 
ington to the policies the United States will follow 
at Rio, and this is fortunate, since 7 weeks still 
remain in which positive and constructive deci- 
sions may be taken — a process which, I would 
like to emphasize, does not, in the case of Latin 
America, necessarily imply any demands on the 
pocketbook of the American taxpayer. The other 
American Republics are not seeking grants in aid 
but cooperation of a kind that is mutually profit- 
able to all the parties to it. The sound extension 
of credit is not only a profitable course for debtor 
and creditor alike but builds up consuming areas 
wliich, in turn, mean greater markets for Ameri- 
can products. Our foreign trade with Latin 
America has grown from 1.7 billion dollars in 1938 
to 6.9 billion in 1952, thus making it the principal 
foreign trade area for the United States. It ac- 
counts for between one-fifth and one-fourth of our 
exports and supplies approximately a third of our 
imports. Further, more private United States 
investments are concentrated in Latin America 
than in any other region of the world, the total 
value of such investments now exceeding 6 billion 
dollars. 

I would like to conclude with the following 
brief but eloquent quotation from Dr. Milton 
Eisenhower's report to the President on United 
States-Latin American relations : 

Tbere is no doubt in my mind about the future of Latin 
America. Her people are on the march. They are deter- 
mined to improve their standards of living. They have 
the resources and the manpovper to do so. 

Latin America is destined to be an economically power- 
ful area of the globe. While it will always have economic 
relations with Europe and other parts of the world, its 
firmest and most extensive relations can and should be 
with the United States. 

In the long view, economic cooperation, extended to help 
the people of Latin America raise their level of well-being 
and further their democratic aspirations, will redound to 
their benefit and to ours. 

Working together, the nations of this Hemisphere can, 
if history should so decree, stand firmly against any enemy 
in war, and prosper mightily together in times of peace. 



Visit of President Magioire 

White House press release dated September 21 

The "White House announced on September 21 
( hat President Eisenhower has invited President 
Paul Magioire of the Republic of Haiti to make 

Deporfmenf of State Bulletin 



a state visit to tlie United States. President 
Mngloire lias accepted tliis invitation and is ex- 
pected to arrive in the United States on January 
26, 19.")!'). It is anticipated that President Ma<;- 
loire will remain in AVashington for 3 days, lie 
will be accompanied by Mrs. Ma<;loire. 

The visit is a further demonstration of the cor- 
dial relations and historic friendship between the 
United States and the Republic of Haiti. Presi- 
dent Majiloire was elected in 1950 for a term 
endinjr in 1957. 



U.S., Canada Agree on Need for 
Distant Early Warning Line ' 

On April 8, 1954, tlie Governments of Canada 
and the United States issued a joint announcement, 
which, after referring to the construction of the 
Pinetree radar chain, announced plans for the es- 
tablishment of a further radar system "generally 
to the north of the settled territory in Canada."^ 
The Canadian Government subsequently decided 
that it would be appropriate, as a part of its con- 
tribution to the common defense requirements of 
the two countries, for Canada to undertake respon- 
sibility for financing, constinicting, and operating 
this new system, which is generally referred to as 
the "Mid-Canada Line." 

During tlie time that plans for the Mid-Canada 
Line have been under development, studies have 
also been going on to determine the feasibility of 
providing even earlier warning of the approach 
of hostile aircraft. 

As a result of these studies, the Canadian and 
United States Governments have agreed in prin- 
ciple that there is a need for the establishment of 
a distant early warning line across the far north- 
em part of North America and have directed that 
detailed planning for siuh a line should be initi- 
ated at once. The basis of participation by the 
two countries in the construction and operation of 
the line, and the division of costs, will be deter- 
mined after the detailed plans have been consid- 
ered and agreed. 

In developing the complete system for warning 



' ReleasPd to the press by the Department of Defense 
on Sept. 27 ; released simultaneously by the Canadian 
Government. 

' Bulletin of Apr. 26, 1954, p. 639. 



of the approach of hostile aircraft and for the 
control of interceptor forces, the two Governments 
have followed a policy of building outward from 
the likely target areas. Thus the first step, which 
lias now been largely completed, was the construc- 
tion of the main control and warning radar instal- 
lations in the continental United States and the 
populated part of Canada. The second step, 
which is now under way, is the provision of the 
Mid-Canada Line. A third measure, the need for 
which has now been agreed upon between the two 
Governments, will be the provision of a distant 
early warning line across the most northerly prac- 
ticable part of North America. Portions of the 
complete warning and control system in Canada 
will be extended to seaward on both flanks of the 
continent by the United States. 

The establishment of these North American de- 
fense installations is a costly and difficult task, 
which is being undertaken because our security 
requires it and is being accomplished successfully 
because of the readiness of Canadians and Ameri- 
cans to work together in a common cause. 



Bill To Control Level of 
Lake Michigan Vetoed 

Statement iy the President 

White House OflSce press release dated September 3 

I have withheld my approval of H.R. 3300, "To 
authorize the State of Illinois and the Sanitary 
District of Chicago, under the direction of the 
Secretary of the Army, to help control the lake 
level of Lake Michigan by diverting water from 
Lake Michigan into the Illinois waterway." 

The bill would authorize the State of Illinois 
and the Sanitary District of Chicago, under the 
supervision and direction of the Secretary of the 
Army, to withdraw from Lake Michigan, in addi- 
tion to all domestic pumpage, a total annual aver- 
age of 2,500 cubic feet of water per second into 
the Illinois waterway for a period of 3 years. This 
diversion would be 1,000 cubic feet per second 
more tlian is presently permitted under a decree 
of the Supreme Court of the United States dated 
April 21, 1930. The bill also would direct the Sec- 
retary of the Army to study the effect in tlie im- 
provement in conditions in the Illinois waterway 



Ocfober 11, J 954 



539 



by reason of the increased diversion, and to report 
to the Congress as to the results of the study on or 
before January 31, 1957, with his recommenda- 
tions as to continuance of the increased diversion 
authorized. 

The bill specifies that the diversion would be 
authorized in order to regulate and promote com- 
merce, to protect, improve, and promote naviga- 
tion in the Illinois waterway and Mississippi Val- 
ley, to help control the lake level, to afford protec- 
tion to property and shores along the Great Lakes, 
and to provide for a navigable Illinois waterway. 
No mention is made of possible improvement of 
sanitary conditions or increase in hydroelectric 
power generation on the waterway. 

I am unable to approve the bill because (1) 
existing diversions are adequate for navigation on 
the Illinois waterway and Mississippi River, (2) 
all methods of control of lake levels and protec- 
tion of property on the Great Lakes should be con- 
sidered before arbitrarily proceeding with the 
proposed increased diversion, (3) the diversions 
are authorized without reference to negotiations 
with Canada, and (4) the legitimate interests of 
other States affected by the diversion may be ad- 
versely affected. I wish to comment briefly on 
each of these points. 

I understand that waterborne traffic on the Illi- 
nois waterway has grown in the last 20 years from 
200,000 tons to 16,000,000 tons annually. The 
Corps of Engineers advises, however, that the 
existing diversions of water are adequate for navi- 
gation purposes in the Illinois waterway and the 
Mississippi River. Surveys are now under way 
by the International Joint Commission and the 
Corps of Engineers to determine the best methods 
of obtaining improved control of the levels of the 
Great Lakes and of preventing recurrence of dam- 
age along their shores. Reasonable opportunity 
to complete these surveys should be afforded be- 
fore legislative action is undertaken. 

The diversion of Maters into and out of the 
Great Lakes has historically been the subject of 
negotiations with Canada. To proceed unilater- 
ally in the manner proposed in H.R. 3300 is not 
wise policy. It would be the kind of action to 
which we would object if taken by one of our 
neighbors. The Canadian Government protested 
the proposed authorization when it was under con- 
sideration by the Congress and has continued its 
objection to this bill in a note to the Department 



of State dated August 24, 1954.^ It seems to me 
that the additional diversion is not of such national 
importance as to justify action without regard to 
the views of Canada. 

Finally, as is clear from the report of the Senate 
Committee, a major purpose of the proposal to di- 
vert additional water from Lake Michigan into the 
Illinois waterway is to determine whether the in- 
creased flow will improve existing adverse sanita- 
tion conditions. The waters of Lake Michigan are 
interstate in character. It would seem to me that a 
diversion for the purposes of one State alone 
should be authorized only after general agreement 
has been reached among all the affected States. 
Officials of several States adjoining the Great 
Lakes, other than Illinois, have protested approval 
of the bill as being contrary to their interests and 
not in accord with the diversion authorized under 
the 1930 decree of the Supreme Court. Under all 
of these circumstances, I have felt that the bill 
should not be approved. 



Austria Thanks U.S. for 
Gift of Fodder Corn 

White House Office press release dated September 4 

The White House on Sefteniber 4 made puhlic 
the following message to the President from 
Theodor Koern£r, President of Austria. 

Decision of United States Government to make 
25,000 tons of fodder corn available for free dis- 
tribution among Austrian flood victims ^ prompts 
me to express deep-felt thanks to you, Mr. Presi- 
dent, in my own name and in the name of the 
Austrian people and at the same time to express 
admiration for the material generosity and high 
humanitarian spirit with which the American 
people and government constantly display their 
willingness to help the whole world. The gift 
of fodder corn not only represents quantitatively 
an extraordinai-y contribution for the relief of 
the emergency caused by the disastrous flood but 
will also contribute considerably toward over- 
coming as rapidly as possible production diffi- 
culties originating in the catastrophe. 



' Not printed. 

' Bulletin of Oct. 4, 1954, p. 490. 



540 



Department of Sfofe Bulletin 



Loss of Americans and Japanese 
in Hakodate Typhoon 

Press release 540 dated September 28 

FoUowinff is the text of a message from the 
Prime Minister of Japan to Secretary DuUes, to- 
gether with Acting Secretary Smith''s reply. 

Prime Minister Yoshida to Secretary Dulles 

Septejiber 27, 1954 

The Honorable John Foster Dulles 
Secretary of State. 

On my arrival at Ottawa, I was ^-eatly shocked 
to receive a report that some sixty United States' 
Forces members and dependents perished in the 
sinkinsj of the Toyamani at Hakodate last Sun- 
day [September 2G]. I lament the loss of so 
manj- American lives and hasten to express to you 
my sincere condolences. 

Shigeeu YosiiroA 
Prime Minister of Japan 

General Smith to Prime Minister Yoshida 

September 28, 1954 

His Excellency Siiigeru Yoshida 
Prime Minister of Japan 

Through the American Embassy., 
Ottawa. 

I wish to thank you for your message to Secre- 
tary Dulles regarding the loss of American lives in 
the Hakodate typhoon. The people of the United 
States share the deep sense of tragedy felt by you 
and the Japanese people at this unpai-alleled 
disaster. Your thoughtfulness is greatly ap- 
preciated. 

Walter Bedell Smith 
Acting Secretary of State 

Negotiations on Revision of 
Philippine Trade Agreement 

Press release 539 dated September 28 
DEPARTMENT STATEMENT 

The U. S. delegation for the Philippine trade ne- 
gotiations issued formal notice on September 28 
that it would hold hearings beginning at 10 a. m., 
November 1, 1954, in Washington, at the Tariff 
Commission hearing room, with respect to possible 



modification of the 1946 Agreement on Trade and 
Related Matters between the two countries. A 
preliminary announcement of these hearings was 
made by the Department of State on August 11, 
1954.' 

The notice of the delegation states that applica- 
tions for oral presentation of views and informa- 
tion, as well as written briefs or statements, must 
be presented to the delegation not later than 12 
noon, October 22, and that only those persons will 
be heard who by that date have presented written 
briefs or statements and filed ai)plications to be 
heard. The notice points out that the negotia- 
tions will cover all aspects of the 194G agreement, 
and particularly the provisions regarding tariff 
preferences (article I), commodity quotas and 
their allocation (articles II and III), exchange 
rates and controls (article V), national treatment 
for Americans in the development of Philippine 
natural resources (article VII), and nondiscrimi- 
nation and termination (article X). 

Twelve copies of the written briefs or state- 
ments are to be supplied to the delegation, either 
typed, printed, or duplicated. One copy should 
be swoi'n to. These communications should be 
addressed to "The Chainnan, United States Dele- 
gation for Philippine Trade Negotiations, De- 
partment of State, Washington 25, D. C." 

NOTICE OF HEARINGS 

Notice is hereby given by the United States Delegation 
for Philippine Trade Negotiations of intention to conduct 
negotiations with tlie Republic of the Philippines for the 
purpose of revising, subject to the approval of the Con- 
gresses of the two countries, the Agreement on Trade and 
Related Matters entered into between the United States 
and the Philippines on July 4, 1946 pursuant to Public 
Law 371 of the 79th U.S. Congress ("Philippine Trade 
Act of 1946"). A continuation through December 31, 
1955 of the reciprocal free trade provisions of the Agree- 
ment was recently approved by the two Congresses (Pub- 
lic Law 474 of the S3rd U.S. Congress) to permit time 
for the consultations and negotiations to which this notice 
refers. 

The negotiations will cover all aspects of the 1946 Agree- 
ment and particularly the provisions regarding tariff 
preferences (Article I), commodity quotas and their al- 
location (Articles II and III), exchange rates and con- 
trols (Article V), national treatment for Americans in 
the development of Philippine natural resources (Article 
VII), and nondiscrimination and termination (Article X). 

Any persons who have views or information which they 
wish to present to the Delegation with respect to possible 



' Bulletin of Aug. 23, 1954, p. 264. 



October 71, 7954 



541 



modification of the 1946 Agreement in these or otlier re- 
spects are invited to do so in tlie public hearings which 
will be held before the Delegation beginning at 10 : 00 
a. m., November 1, 1954. The Delegation will also re- 
ceive information and views in writing. Presentations 
will be given equal consideration, whether written or oral. 
Anything which is confidential should be so labeled on 
the cover sheet and separated from nonconfidential 
material. 

Applications for oral presentation, and the submission 
of written statements or briefs, must be made to the Dele- 
gation not later than 12 : 00 noon, October 22. All such 
communications should be addressed to "The Chairman, 
United States Delegation for Philippine Trade Negotia- 
tions, Department of State, Washington, 25, D. C." 
Twelve copies of written statements, either typed, printed 
or duplicated, shall be submitted, of which one copy should 
be sworn to. 

Only those persons will be heard who have presented 
written briefs or statements and filed applications to be 
heard by the closing date indicated in the preceding para- 
graph. The bearings will be held in the Hearing Room of 
the Tariff Commission at 7th and F Streets, Washington, 
D. C. Applicants for oral presentation will be advised 
regarding the time of their individual appearance. State- 
ments made at the public hearings shall be under oath. 

By direction of the Chairman of the United States Dele- 
gation for Philippine Trade Negotiations this twenty- 
eighth day of September, 1954. 

F. Patrick Kellt 

Executive Secretary 
United States Delegation for 
Philippine Trade Negotiations 



Formal Opening of 
U.S.-Philippine Trade Talks 

Press release 516 dated September 20 

The folloioing remarhs were made l>y Walter S. 
Roiertson, Assistant Secretary for Far Eastern 
Affairs, and Senator Jose P. Laurel, Chairman of 
the Philippine delegation, on the occasion of the 
foi'mal opening of the U.S. -Philippine trade talks 
on September W. 

REMARKS BY ASSISTANT SECRETARY 
ROBERTSON 

President Eisenhower has asked me to extend 
to you the warm greetings of the United States 
Government as well as his personal felicitations 
on this occasion signaling the opening of the dis- 
cussions on the United States-Philippine Trade 
Agreement. 

Secretary of State Dulles also extends his greet- 
ings and has asked me to convey to you his sincere 



regrets at not being able to participate in this open- 
ing ceremony. As you know, he has just made a 
quick trip to Europe and will not be returning to 
Washington before proceeding to the United Na- 
tions General Assembly. 

More than a year ago the President of the 
Philippines requested a re-examination and read- 
justment of the provisions of the 1946 Agreement 
on Trade and Related Matters Between the 
United States and the Republic of the Philippines. 
President Eisenhower replied at that time that the 
United States stood ready to give sympathetic 
consideration to any specific proposals which the 
Philippine Government might wish to advance.^ 

We are now about to commence our discussions. 
I am confident that they will be frank and cordial 
and that the results will be fruitful and will repre- 
sent the best interests of our two countries. 

I think these discussions are another example 
of the close and friendly relations existing between 
us. This is a relationship of free and sovereign 
nations whicli sit down together and discuss 
frankh' any differences in point of view and which 
are prepared to reach an understanding in a spirit 
of compromise and mutual trust. 

Senator Laurel, it is indeed a pleasure and an 
honor to welcome such a distinguished visitor from 
your great Republic. We are well aware of your 
years of devoted public service and of the esteem 
in which you are held in your own country. I 
should like to convey to you my own country's 
high esteem and warm welcome. 

REMARKS BY SENATOR LAUREL 

In behalf of the Philippine Economic Mission, 
I ackiiowledge with profound appreciation the 
gi-eetings of the President and the Secretary of 
State of the United States, which you have just 
conveyed to us. 

We particularly cherish the personal felicita- 
tions from President Eisenhower, whose loj'al and 
worthy services when we were still a Common- 
wealth have forged an indissoluble bond of mutual 
regard and affection between him and our people. 

President Magsaysay has entrusted me with the 
pleasant task of expressing the gratitude of the 
Government and people of the Republic of the 
Philippines to the Government and people of the 
United States for their sympathetic attitude to- 



542 



' Bru-ETiN of Sept. 7, 1953, p. 316. 

H&patimeni of State Bulletin 



ward the revision of the 1046 A<;recinent on Trade 
and Related Matters. This attitude was mani- 
fested by the readiness with which President 
Eisenliower approved the lioUling of these negotia- 
tions and tlie speedy enactment by tlie Congress 
of a statute in effect extending for 18 montiis the 
free trade between our two countries in order to 
facilitate the successful re-examination of said 
trade agreement. 

Secretary Robertson, I share your feeling of 
confidence that these discussions will be conducted 
in utmost candor and cordiality, which auger their 
felicitous conclusion. The Philippine delegation 
will participate in the discussions in a spirit be- 
fitting the free and friendly collaboration wliich 
exists between our two countries. I am sure we 
shall be able to reach a satisfactory agreement 
which will promote our common interests and 
mutual advantage. 

Secretary Robertson, I am deeply touched by the 
kind words of welcome which you have addressed 
to me personally. There is no more gratifying 
experience for me than to be so warmly received 
in this great country since I last came here as a 
humble student 36 years ago. 



Department Engages ANTA 

Press release 541 dated September 29 

The Department of State has engaged the Amer- 
ican National Theatre and Academy to act as its 
agent for the purpose of encouraging and facilitat- 
ing tours abroad by American individuals and 
groups in musical, theatrical, and other fields. 

This project is an extension of the continuing 
exchange programs handled by the International 
Educational Exchange Service of the Department 
of State. 



TREATY INFORMATION 



Current Actions 

MULTILATERAL 
Aviation 

Protocol amending Article 45 of the Convention on Inter- 
national Civil Aviation (TIAS 1581), relating to the 
permanent seat of the International Civil Aviation Or- 
ganization. Done at Montreal June 14, 1954. Enters 



into forci' on date on wlilcli (ho forty-sfH'oiul instrument 
of r:iIillciilloM is (Icpositcil with ICAO. 

Narcotic Drugs 

Protocol for limiting and rc^'uliitlnf; the <'iiltlvation of 
thf poppy plant, th(? production of, international and 
wholesale trade in, and use of opium. Dated at New 
Vorlv Juno 23, li)53.' 
Ratified by the President: September 14, 1954. 

Slave Trade 

Protocol amending the slavery convention signed at 
Geneva SepK-niher 25, 1!)2C (40 Stat. 2183), and annex. 
Done at New Yorlv December 7, lO.'iS.' 
Sifiiiature (ad referendum) : Ecuador, September 7, 
1954. 

Telecommunications 

International telecommunications convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 1954.' 

Ifiitiflriiliuiin deposited: Yugoslavia, August 16, 1954; 
Franco and Al^'eria. and Overseas Territories of the 
French Republic and Territories administered as such,* 
August 19, 1954. 

Final protocol to the international telecommunication 
convention. Signed at Buenos Aires December 22, 1952. 
Entered into force January 1, 19.54.' 
Rntifieation deposited: Yugoslavia, August 16, 1954. 

Additional protocols to the international telecommunica- 
tion convention. Signed at Buenos Aires December 22, 
1952. Entered into force December 22, 19.52. 
Ratifieation deposited: Yugoslavia, August 16, 1954. 

Trade and Commerce 

Declaration regulating the commercial relations between 
certain contracting parties to the General Agreement 
on Tariffs and Trade and Japan. Done at Geneva Octo- 
ber 24, 19.53. Entered into force November 23, 1953 for 
the United States. TIAS 2917. 
Acceptance effective: Germany, September 2, 1954. 



BILATERAL 
Colombia 

Agreement for a cooperative program of housing in Co- 
lombia, pursuant to the General Agreement for Tech- 
nical Cooperation dated March 5 and 9, 1951 (T1.\S 
2231) . Effected by exchange of notes at Bogota June 24 
and 30. 19.54. Entered into force June 30, 1954. 



' Not in force. 

' Not in force for the United States. 

'These comprise: French Equatorial Africa (Gabon, 
Middle-Congo, Oubangui-Chari, Chad) ; French West 
Africa (Senegal, French Sudan, French Guinea, Ivory 
Coast, Niger, Haute-Volta, Dahomey, Mauretania) ; 
French Somaliland ; French Settlements in India ; French 
Settlements in Oceania ; Madagascar and Dependencies ; 
New Caledonia and Dependencies; Saint Pierre and Ml- 
quelon Islands ; Territories under French Trusteeship 
(Cameroon, Togo). 



October 11, 1954 



543 



Germany 

Convention for the avoidance of double taxation with 
respect to taxes on income. Signed at Washington July 
22, 1954. 
Ratified hy the President: September 22, 1954. 

Guatemala 

General agreement for technical cooperation. Signed at 
Guatemala City September 1, 1954. Entered Into force 
September 1, 1954. 

Peru 

Agreement terminating the agreement of April 1 and 9, 
1952 (TIAS 2723), as amended, providing for an agri- 
cultural experiment program in Peru. Effected by 
exchange of notes at Lima April 27 and May 11, 1954. 
Termination became effective May 18, 1954. 



FOREIGN SERVICE 



First Foreign Service Officers 
Under New Program Take Oath 

Press release 543 dated September 30 

The first group of Foreign Service officers to be ap- 
pointed under the Secretary of State's integration pro- 
gram received their oath of office on September 30. The 
program calling for the integration of the Departmental 
and Foreign Service was one of the recommendations 
advanced by the Secretary's Public Committee on Per- 
sonnel, headed by Henry M. Wriston. 

Following are the names and home towns of the officers 
appointed : 

Harlan P. Bramble, Portland, Oreg. 
W. Clyde Dunn, Chapel Hill, N. C. 
Richard B. Freund, Chicago, 111. 
Paul T. Meyer, East Orange, N. J. 
Harry K. Baker, Chevy Chase, Md. 
Douglas N. Batson, Poplarville, Miss. 
James H. Boughton, Westport, Conn. 
Louis Mason Drury, Chevy Chase, Md. 
Tobias J. Boyd, Johnstown, Pa. 
Delbert D. Mehaffy, Mediapolis, Iowa. 
Joseph B. Tisinger III, Takoma Park, Md. 
Bett.v-Jane Jones, Milwaukee, Wis. 
Gloria E. Abiouuess, Norfolk, Va. 



Legation in Libya Elevated to Embassy 

The United States announced on September 25 (press 
release 532) the elevation of its Legation in Libya to 
the status of an Embassy. 

At the same time, the White House announced tliat the 
President has named John L. Tappin to be U.S. Am- 
bassador to Libya. He succeeds Henry S. Villard, who 
has served as Minister of the United States to Libya 



since February 1952 and who has recently been ap- 
pointed Principal Political Adviser on Near Eastern and 
African Affairs to the U.S. delegation of the Ninth Gen- 
eral Assembly of the United Nations. 

Consular Offices 

The consulate at Tananarive, Madagascar, was closed 
to the public on July 1, 1954, and officially closed on Au- 
gust 31, 1954. 



Recess Appointments 

The President on September 25 made the following 
recess appointments : 

Robert F. Woodward to be Ambassador to Costa Rica. 
Robert C. Hill to be Ambassador to El Salvador. 
John L. Tappin to be Ambassador to the United King- 
dom of Libya. 



PUBLICATIONS 



Foreign Relations Volume 

Press release 511 dated September 16 

The Department of State on September 25 re- 
leased Foreign Relations of the United States, 
1937, Volume IV, The Far East. Documents 
published in this volume deal chiefly with prob- 
lems arising from the outbreak of undeclared war 
between China and Japan in July 1937, especially 
with efforts by tlie United States and other powers 
to restore peace. This is the second of two vol- 
umes dealing with the Far East crisis in 1937, 
Foreign Relatione of the United States, 1937, Vol- 
utne III, The Far East, liaving been released last 
June 26.' 

In 1937 China faced Japan, with the Soviet 
Union watching from the sidelines and discussing 
developments with other powers. Nine hundred 
pages of contemporary papers deal with not only 
efforts to end the undeclared war but also other 
phases of the war itself and repercussions affect- 
ing the United States. 

A conference was called at Brussels under the 
terms of the Nine Power Treaty of February 6, 



544 



' Bulletin of July 12, 1954, p. 73. 

Oepar/menf of State Bulletin 



1922, rejrard'mir Chiiii), to exi>1oro the pcissibility 
of peiK'cful solution of the conflict between Japan 
anil China. Tliis conference forms the principal 
diapter in this second volume on the Far East in 
1937. Chapters are also included on American 
relations with China, Japan, and Siam (Thai- 
land). 

As long ago as 1937 the role played by Soviet 
diplomacy and Communist intrigue in China was 
emerging. 

Ambassador Nelson T. Johnson at Nanking 
cabled on January 12 that the Chinese military at 
Sianfu — where Generalissimo Cliiang Kai-shek 
had been kidnapped a month before and released 
under mysterious circumstances — "had linked 
themselves closely with the Communists in a com- 
mon purpose to fight the National Government" 
(p. 553). In the spring months Red propaganda 
agencies were discovered to be using "American 
ownership, real or simulated," as protection 
against Chinese jurisdiction (pp. 692-9-1). 

On May 12, however, Mr. Johnson mentioned 
"General Chiang Kai-shek's reported willingness 
to come to a working agreement with the Commu- 
nist forces in the northwest" (p. 597), and on 
June 25 Consul General C. E. Gauss, at Shang- 
hai wrote (p. 688) : 

As the Department Is aware from political reports from 
China, some sort of rapprochement has taken place be- 
tween the Chinese Communists and the Kuomintang and 
Nanking Government. 

^Ir. Gauss noted further that "the activities and 
support of the Third Internationale (at Moscow) 
are being directed away from criticism and at- 
tack on the National Government of China toward 
the development of a 'popular front' of opposition 
to Japan." 

By November 3 Ambassador Johnson could re- 
port that official Chinese sources hoped for a 
Soviet -Japanese nonaggression pact similar to the 
Soviet-Chinese pact of August 21 (p. 151). The 
same sources argued that "communism internally 
is a domestic Chinese problem" — contrary to usual 
Japanese announcements. 

President Roosevelt's "quarantine" speech at 
Chicago on October 5 brought various reactions 
abroad. Ambassador Joseph E. Davies at Moscow 
sent telegrams on Soviet comment (pp. 87-8, 100- 
1, 119-20). Dated between October 18 and 29, 
these indicated press and official pleasure over the 
chance of United States exercising restraint upon 



Japati. Soviet Foreign Commissar Litvinov de- 
clared that "the Soviet Union was prepared to 
take a strong position if it were in cooperation 
with the United States, France, and England" 
(p. 120). 

On November 10 Ambassador William C. Bul- 
litt at Paris cabled a report of an interview wifli 
French Premier Chautemps (pp. 172-4), in wliich 
the latter spoke as follows : 

I understand how much the President may desire to 
do something today to preserve peace ; but I should in- 
finitely rather have liim say nothing than make speeches, 
like his speech at Chicago, which aroused immense hojM's 
when there is no possibility that in the state of American 
opinion and the state of mind of the Senate he can fol- 
low up such speeches by action. Such a policy on the 
part of the United States merely leads the dictatorships 
to believe that the democracies are full of words but are 
unwilling to back up their words by force, and force is 
the only thing that counts today in the world (p. 173). 

On November 16 Japanese Embassy Counselor 
Suma told Assistant Secretary of State Hugh R. 
Wilson (pp. 194r-6) what Japan thought of the 
situation: "the Chicago speech of the President 
and the association by the State Department of the 
United States with the action of tlie League (of 
Nations) had shaken Japan's belief in our friend- 
ly attitude; nevertheless, the President had fol- 
lowed his Chicago speech by a fireside talk (Octo- 
ber 12), which had done much to restore the 
friendly sentiments of the Jaj)anese for us" 
(p. 194). 

An interesting account of the relationship be- 
tween American press representatives and dele- 
gates attending the Brussels Conference is given in 
a telegram on November 21 from Norman H. 
Davis, Chairman of the American delegation (pp. 
221^). As Mr. Davis noted, it was difficult to 
explain that the United States only intended "to 
seek with all the other powers at the Conference 
a peaceful solution of the conflict in the Far East" 
(p.222). 

Aside from discussions at Geneva and Brussels, 
the new volume contains chapters on protection 
of American rights in the area of the undeclared 
war, sinking by Chinese and Japanese action re- 
spectively of the liner President Hoover and the 
gunboat Panay, assistance of various kinds to 
China, representations to China on behalf of 
Americans, narcotic traffic in China, Japanese 
Army pressure on their government, representa- 
tions to Japan in regard to oil, fisheries, and other 



Oc/ofaer n, 1954 



545 



interests, Japan's ban on U.S. naval visits to the 
Pacific mandated islands, Japanese aid in search 
for the missing Amelia Earhart plane, and a new 
friendship treaty with Siam. 

A final volume for 1937, that on the American 
Kepublics, will appear shortly. 

Copies of this volume (IV, 911 pp.) may be 
purchased from the Superintendent of Documents, 
Government Printing Office, Washington 25, D. C, 
for $4 each. 



Recent Releases 

For sale 'by the Superintendent of Documents, U.S. Oov- 
ernment Printing Office, Washington 25, D. C. Address 
requests direct to the Superintendent of Documents, ex- 
cept i« the case of free publications, ivhich may be obtained 
from the Department of State. 

Technical Cooperation— Jordan Program. TIAS 2S19. 
Pub. 5238. 5 pp. 50. 

Agreement between the United States and Jordan, amend- 
ing agreement of February 12, 1952, as amended — Signed 
at Amman Apr. 7, 195.3. 

Mutual Aid Settlement — Release of Netherlands Obliga- 
tions on Behalf of Indonesia Under Agreement of May 
28,1947. TIAS 2820. Pub. 5239. 5 pp. 50. 

Agreement between the United States, the Netherlands, 
and Indonesia. Exchange of note.s — Signed at The Hague 
Sept. 17 and Djakarta Oct. 15, 1952, and at Washington 
Apr. 8, 1953. 

Technical Cooperation Program. TIAS 2821. Pub. 5240. 
2 pp. 5<t. 

Agreement between the United States and Lebanon, 
amending agreement of June 26, 1952 — Signed at Beirut 
Apr. 14, 1953. 

Air Transport Services — Nonassertion of Sovereign Im- 
munity From Suit. TIAS 2828. Pub. 5248. 2 pp. 50. 

Agreement between the United States and the Netherlands. 
Exchange of notes — Signed at Washington June 19, 1953. 

€Iobal Relations of the United States. Pub. 5536. Gen- 
eral Foreign Policy Series 91. 12 pp. 100. 

An article (Department of State Bulletin reprint), with 
maps and illustrations, by S. Whittemore Boggs on the 
study of the spherical surface of the globe in relation to 
tJie comprehension and better understanding of many 
world problems and cultural relationships. 

Intervention of International Communism in Guatemala. 

Pub. 5556. Inter-American Series 48. 95 pp. 35^. 

A description of the growth of International communism 
in Guatemala and its attempt to get a foothold in the 
Western Hemisphere by gaining control of the political 
institutions of an American Republic. 

People to People — Diplomacy. Pub. 5492. International 
Information and Cultural Series 36. 29 pp. 200. 

A report on the conduct of the International Educational 
Exchange Service in carrying out its program of leader- 
ship, as authorized by the Congress, in coordinating the 
exchange of foreign policy objectives of government and 
private agencies. 

546 



U.S. Participation in the V.'N. — Report by the President 
to the Congress for the Year 1953. Pub. 5459. Interna- 1 
tional Organization and Conference Series III, 100. 
277 pp. 700. 

An annual report, with tables and charts, on the im- 
portant part the United States has played in the activities 
of the United Nations system and of its efforts to trans- 
late the terms and objectives of the charter into reality. 

Technical Cooperation — Public Health and Sanitation 
Program. TIAS 2756. Pub. 5366. 4 pp. 5^. 

Agreement between the United States and Iraq. Effected 
by exchange of notes — Dated at Baghdad June 9 and 
July 27, 1952. 

Technical Cooperation — Economic Development Program. 

TIAS 2757. Pub. 5307. 6 pp. 50. 

Agreement between the United States and Iraq. Effected 
by exchange of notes — Dated at Baghdad October 23 and 
November 16, 1952. 

Technical Cooperation — Water Resources Development 
Program. TIAS 2758. Pub. 5415. 5 pp. 5<». 

Agreement between the United States and Iraq. Effected 
by exchange of notes — Dated at Baghdad December 11, 
1951, April 28 and May 21, 1952. 

German External Debts. TIAS 2792. Pub. 5230. 355 

pp. $1. 

Agreement, with annexes and appendices, between the 
United States and Other Governments — Signed at London 
February 27, 1953. 

Settlement of United States Claim for Postwar Economic 
Assistance to Germany. TIAS 2795. Pub. 5286. 15 pp. 
10«!. 

Agreement between the United States and the Federal 
Republic of Germany — Signed at London February 27, 
1953. 

Technical Cooperation — Application to Eritrea of Pro- 
gram for Technical and Science Education. TIAS 2803. 

Pub. 5204. 2 pp. 50. 

Agreement between the United States and Ethiopia. 
Effected by exchange of notes — Dated at Addis Ababa 
June 19 and 25, 1953. 

Technical Cooperation — Application to Eritrea of Agri- 
cultural Education Program. TIAS 2805. Pub. 5266. 
1 p. 50. 

Agreement between the United States and Ethiopia — 
Signed at Addis Ababa June 25, 19,53. 

Technical Cooperation — Program of Agriculture. TIAS 
2806. Pub. 5267. o pp. 50. 

Agreement between the United States and Ethiopia. 
Effected by exchange of notes — Dated at Addis Ababa 
June 23 and 30, 1953. 

Mutual Defense Assistance — United States Military 
Assistance Advisory Group to Saudi Arabia. TIAS 2812. 
Pub. 5227. 10 pp. 100. 

Agreement between the United States and Saudi Arabia, 
implementing agreement of June IS, 1951. Effected by 
exchange of notes — Signed at Jidda June 27, 1953. 

Air Transport Services. TIAS 2813. Pub. 5228. 29 pp. 
150. 

Agreement, with annex and exchange of notes between 
the United States and Venezuela — Signed at Caracas 
August 14, 1953. 



Department of State Bulletin 



Technical Cooperation— Well Drilling Under Program 
for Water Resources Development. TIAS -">1 1. Pub. 

521)1. 3 pp. r)(f 

ARrcement between the United States and Ethiopia. 
EiTooted by exchange of notes — Dated at Addis Ababa 
J\im' 27 and .'{O. 1053. 

Economic Cooperation. TIAS 281C. Pub. 523.''>. 8 pp. 
10(^. 

Agreement between the United States and the United 
Kingdom of Great Britain anil Northern Ireland, pur- 
suant to agreement of July 0, 1948, as amended. Effected 
bv exchange of notes — Signed at Loudon B'ebruary 25, 
litSS. 

Training Program in the United States of America for 
Japanese National Safety Force Officers. TI.VS '-'SIT. 
Pub. 5236. 4 pp. 5(?. 

Agreement between the United States and Japan. Ef- 
fei'ted l)v esi'hange of notes — Signed at Tokyo March 17 
and IS, 1953. 

Economic Cooperation — Guaranties under Public Law 
472, 80th Congress, as Amended. TIAS 2818. Pub. 5237. 
4 pp. 5(. 

Agreement between the United States and Haiti. Ef- 
fected by exchange of notes — Signed at Washington March 

13 and April 2, 1953. 

Agricultural Experiment Station in El Salvador. TIAS 
2S22. I'vib. .".L'4.j. 3 pp. uf. 

Agreement between the United States and El Salvador, 
extending Memorandum of Understanding of October 21, 
1942, as amended and extended. Effected by exchange 
of notes — Signed at San Salvador April 16 and 21, 19.53. 

Agricultural Experiment Station in El Salvador. TIAS 
2823. Pub. 5240. 3 pp. 5f. 

Agreement between the United States and El Salvador, 
extending Memorandum of Understanding of October 21, 
1942, as amended and extended. Effected by exchange 
of notes — Signed at San Salvador June 30, 19.53. 

Civil Aviation Mission to Panama. TIAS 2824. Pub. 
5241. 4 pp. 5^. 

Agreement between the United States and Panama, 
amending and extending agreement of March 31, 1949. 
Effected by exchange of notes — Signed at Panama April 

14 and aiay 8, 1953. 

Economic Cooperation. TIAS 2826. Pub. .5243. 4 pp. 

.\greemont between the United States and Portugal, 
amending agreement of September 28, 1948, as amended. 
Effected by exchange of notes — Signed at Washington May 
22 and 25, 1953. 

Technical Cooperation — Agriculture and Natural Re- 
sources Development Programs. TIAS 2827. Pub. 5247. 
8 pp. ]l»'\ 

Agreement between the United States and Colombia. Ef- 
fected by exchange of notes — Signed at Bogotd May 25, 
and June 9, 1953. 

International Recognition of Rights in Aircraft. TI.VS 
2S47. Pub. .".^'^s. 17 p. 10^ 

Convention between the United States and Other Govern- 
ments. Opened for signature at Geneva June 19, 1948 — 
Entered into force with respect to the United States 
September 17, 1953. 



The Philippines— 1954. Pub. 5.508. Far Eastern Series 
(!(). 1 1 pp. iOif. 

A backurdunil suniniiiry im llie Philippines since gaining 
its inilependence on .luly 4, 194(>, its strate;,'lc Importance 
to the frc'e nations of the world, and Us ^'rowing influence 
in the Far Fast as a const ruelive and effective democratic 
counterforce to the spread of communism. 

The Record on Disarmament. Pub. 5581. International 
Organization and Conference Series III, 102. 20 pp. 15^. 

A report of the U.S. Deputy Representative to the Dis- 
armament Commission on the London meeting of the 
Subcommittee of Five on the Disarmament Commission 
meetings from May 13 to June 22, 1954. 

The United Nations — An Appraisal for 1954. Pub. 5554. 
International Organlzution and Conference Series III, 
101. 22 pp. 150. 

A balance sheet of the costs, accomplishments, and aims 
of the LInited Nations, its importance as a forum for 
world opinion, and its effective part in the progress of 
the free world in its fight for peace and the common bene- 
lit of all mankind. 

Aerial Mapping Project in Thailand. TIAS 2759. Pub. 
5371. 3 pp. 50. 

Agreement between the United States and Thailand. Ex- 
change of notes — Signed at Bangkok November 8 and De- 
cember 3, 1952. 

Validation of Dollar Bonds of German Issue. TIAS 2793. 
Pub. 5212. 02 pp. 300. 

Agreement between the United States and the Federal 
Republic of Germany — Signed at Bonn February 27, 1953. 
Confirmation of Effectiveness in Berlin. Exchange of 
notes — Si^Tied at Washington February 25 and April 9, 
1954. 

Certain Matters Arising From the Validation of German 
Dollar Bonds. TIAS 2794. Pub. 5280. 11 pp. 100. 

Agreement between the United States and the Federal 
Republic of Germany — Signed at Bonn April 1, 1953. 
Confirmation of Effectiveness in lierlin. Exchange of 
notes — Signed at Washington February 25 and April 9, 
1954. 

Settlement of Indebtedness of Germany for Awards 
Made by the Mixed Claims Commission. TIAS 2796. 
Pub. 5287. 15 pp. 100. 

Agreement between the United States and the Federal 
Republic of Germany — Signed at London February 27, 
19.53. 

International Wheat Agreement. TIAS 2799. Pub. 5183. 
175 pp. 500. 

A.u'reement between the United States and Other Govern- 
ments, revising and renewing agreement of March 23, 
1949 — Open for signature at Washington April 13-27, 
19.53. 

Technical Cooperation— Program of Agriculture. TIAS 
2829. I'ub. 5249. 8 pp. 100. 

Agreement, with Memorandum of Understanding, between 
the United States and Liberia — Signed at Monrovia June 
■S.). 19.53. 

Army Mission to El Salvador. TIAS 2825. Pub. 5242. 
19 pp. 150. 

.Vgreement between the United States and El Salvador — 
Signed at San Salvador May 21, 1953. 



Ocfober J?, 1954 



547 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Cooperating To Improve 
Free World's Economy 

Statement by George M. Humphrey 
Secretary of the Treasury ^ 

At the opening of the meeting it was my priv- 
ilege to bring you the welcome of the President 
of the United States in behalf of the American 
people. Now I should lili:e to express my own 
gratification at being with you again and rep- 
resenting the United States in the second of these 
annual meetings which have been held since I be- 
came Secretary of the Treasui-y. It is a great 
pleasure to renew our pleasant associations and to 
have the opportunity to discuss problems of mu- 
tual interest with you. 

Since our last meeting the free world has con- 
tinued to advance toward our common objectives 
of a healthier and wider flow of trade and money. 
The President of the United States in his March 30 
message to our Congi-ess has set the guidelines for 
our foreign economic policy.^ Last month he em- 
phasized that this message remains firmly our po- 
sition. Our objective is "to obtain, in a manner 
that is consistent with our national security and 
profitable and equitable for all, the highest pos- 
sible level of trade and the most efficient use of 
capital and resources." Greater freedom from 
restrictions and controls and the increased 
efficiencies which arise from expanding markets 
and the freer play of economic forces are essential 
to the attainment of this higher trade level. 

During the past year genuine progress has been 
made in removing restrictions and strengthening 
our economies. Production and trade remain at 
high and sounder levels. Good money policies are 
more widespread. Price levels have become more 



' Made before the opening joint session of the Boards 
of Governors, International Monetary Fund and Interna- 
tional Banlc for Reconstruction and Development, Wash- 
ington, D. C, on Sept. 24. Mr. Humphrey is the Gover- 
nor for the United States. 

' Bulletin of Apr. 19, 1954, p. 602. 



stable. Balances of international payments are 
in better equilibrium. Currency convertibility — 
a most desirable condition for a freer and healthier 
international trade — has become a nearer prospect, 
as the Fund report points out. 

I think it is worthy to note how far the trade- 
agreements program of the United States has 
moved to reduce our tariffs and eliminate restric- 
tions against imports through the negotiation of 
reciprocal agreements. During 1953, only 45 per- 
cent of the total value of our imports were subject 
to any import duties. Fifty-five percent were duty 
free. The duties collected on our dutiable imports 
represented only 12 percent of their value. To 
some extent, of course, the ratio of the duties col- 
lected to the value of imports reflects a rise in the 
prices of imported articles. Nevertheless, it is 
clear that the average cost, to the rest of the world, 
of sending their goods to us is now comparatively 
low. 

The United States has taken and will continue 
to take its part in trying further to remove un- 
necessary restrictions on international trade under 
the program set forth by the President in his 
March 30 message to our Congress, and our most 
recent moves towai'd customs reform are another 
step in that dii'ection. 

In view of tlie stronger international position 
of many otlier countries, we should reasonably 
look forward to gradual further lifting of their 
present restrictions on their trade with the rest 
of the world and with us. 

I think it is generally recognized that probably 
the greatest contribution which the United States 
can make to expanding and profitable interna- 
tional trade is a healthy and growing economy at 
a higli level of activity here in the United States. 
This helps sustain a high level of demand for the 
world's goods and so fosters trade on a mutually 
beneficial basis. To sustain a high level of eco- 
nomic activity in this country is the keystone of 
our policy. 

Over the long term, economic progress must be 
based upon a substantial tlow of new private in- 
vestment, both national and international. The 



548 



Department of State Bulletin 



Message From President Elsenhower 

The iolhiiriny Utter from llii- i'n\siiltnt was read 
by Secretary of the Treamiry Qeorge M. Humphrey 
to the openitiff scsnion of the annual meeting of 
Boards of Governors, International Hank for He- 
constriietion and Development and the Interna- 
tional Monetary Fund, on September 2i: 

I am delighted to send greetings to the Boards of 
Governors of the International Bank for Uecon- 
structiou and Development and the International 
Monetary Fund at their Ninth Annual Meeting in 
Washington. 

The International Bank and tlie International 
Monetary Fund during the past year have again 
demonstrated that they are active and effective in- 
struments in promoting international cooperation 
toward the well-being of tlie free world. The 
United States heartily approves the Funti's efforts 
to free the world from restrictions on the flow of 
trade and money and to foster sound monetary ix)l- 
icies and currency convertibility. The Bank has 
notably aided the member countries in their eco- 
nomic development and has helped promote condi- 
tions under which greater flow of private invest- 
ments can take place. 

The Kimd and the Bank have our best wishes for 
success and the assurance of our support. I antici- 
pate with confidence a successful year for both 
institutions. 



International Bank in its relatively brief career 
has done much to improve the climate for invest- 
ment. Its loans for the development of basic fa- 
cilities in the member countries have provided the 
groundwork for other forms of investment. The 
bank can be an important supplement to the flow 
of private investment, but it cannot be a substitute 
for it. 

In 1953 the International Bank disbursed $240 
million in loans to member coimtries. By way of 
comparison, the outflow of private capital from 
the United States has been about $900 million a 
year for the last 6 years. In addition, the sub- 
sidiaries abroad of American companies have re- 
invested earnings at an average rate of about $600 
million a year. 

To complete the picture, the U.S. Government 
has lent over $-100 million a year net of repay- 
ments. All in all, these various sources — the In- 
ternational Bank, private U.S. investors, and the 
U.S. Government — have added more than $2 bil- 
lion a year to the capital available to foreign coun- 
tries. Three-fourths of this lias come from pri- 



vate investors. Naturally the great bulk of this 
investment has been nuide in those countries wiiere 
experience has shown the principal is most safe 
and where reasonable retinii of earnings can be 
best assured. 

All countries must of course rely upon domes- 
tic savings for the great bulk of their economic 
development. The encouragement of savings and 
of capital formation at home and tiie investment 
of these savings at home in productive enterprise, 
as well as investment from abroad, are dependent 
on sound monetary and investment policies and 
assurance of safety of principal and fair treat- 
ment of investors, which give people confidence in 
their currency and in the preservation of its value. 
I am sure the discussions we shall have during the 
next few days will help to assess the importance of 
these elements in vigorous and successfid inter- 
national investment. 

I am looking forward to hearing the views of 
the other Governors on the problems of inter- 
national exchange and capital investment and the 
related matters, which are the occasion for our 
annual meetings. I know that during these meet- 
ings we will all become better acquainted and have 
the oi)])()rtunity to obtain a better understanding 
of our mutual interests and problems, which we 
can all approach in a real spirit of optimism so 
amply justified by the widespread improvement 
in economic conditions in the free world. 



Current U. N. Documents: 
A Selected Bibliography' 



General Assembly 

International Law Commission. Sixth session. Nation- 
ality Including Statelessness. Survey of the Problem 
of Multiple Nationality (Prepared by the Secretariat). 
A/CN.4/84. May 14, 1954. 149 pp. mimeo. 

Supplementary List of Items for the Agenda of the Ninth 
Regular Session of the General Assembly : Item Pro- 
posed by Afghanistan, Burma, Egypt, India, Indo- 
nesia, Iran, Iraq, Lebanon, Pakistan, the Philippines, 
Saudi Arabia, Syria, Thailand and Yemen. The 
Tunisian Question. A/2683, July 29, 1954. 6 pp. 
mimeo. 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia 
University Press, 29(50 Broadway, New York 27, N. Y. 
Other materials (mimeographed or processed documents) 
niav be omsulted at certain designated libraries in the 
United States. 



October 11, 1954 



549 



Question of Defining Aggression. Comments received 
from Governments regarding tbe report of the Special 
Committee on tlie Question of Defining Aggression. 
A/2689. August 6, 1954. 14 pp. mimeo. 
Report of ttie International Law Commission Covering 
the Worli of its Sixtli Session. A/CN.4/88. August 
5, 1954. 60 pp. mimeo. 
Information from Non-Self -Governing Territories: Sum- 
mary and Analysis of Information Transmitted Under 
Article 73e of the Charter : Report of the Secretary- 
General. A/2655. August 11, 1954. 12 pp. mimeo. 
Economic Development of Under-Developed Countries. 
Special United Nations Fund for Economic Develop- 
ment. A/2646/Add. 2. July 23, 1954. 30 pp. mimeo. 
Information from Non-Self-Governing Territories: Sum- 
mary and Analysis of Information Transmitted Under 
Article 73e of the Charter. Report of the Secre- 
tary-General. A/2657/ Add. 3. August 13, 1954. 75 
pp. mimeo. 
Information from Non-Self -Governing Territories: Sum- 
mary and Analysis of Information Transmitted 
Under Article 73 e of the Charter: Report of the 
Secretary-General. Summary of information trans- 
mitted by the Government of Australia. A/2651. 
August 20, 1954. 11 pp. mimeo. 
Information from Non-Self -Governing Territories: Sum- 
mary and Analysis of Information Transmitted 
Under Article 73 e of the Charter: Report of the 
Secretary-General. Summary of information trans- 
mitted by the Government of Belgium. A/2652. 
August 11, 19.54. 20 pp. mimeo. 
Information from Non-Self-Governing Territories: Sum- 
mary and Analysis of Information Transmitted 
Under Article 73 e of the Charter: Report of the 
Secretary-General. Summary of information trans- 
mitted by tlie Government of Denm;ul£. A/2653. 
August 17, 1954. 27 pp. mimeo. 
Information from Non-Self-Governing Territories: Sum- 
mary and Analysis of Information Transmitted 
Under Article 73 e of the Charter: Report of the 
Secretary-General. Summary of information trans- 
mitted by the French and British Governments in 
respect of New Hebrides. A/2654/Add.l. August 13, 
1954, 10 pp. mimeo. 
Information from Non-Self -Governing Territories: Sum- 
mary and Analysis of Information Transmitted 
Under Article 73 e of the Charter: Report of the 
Secretary-General. Summary of information trans- 
mitted Ijy the British Government. A/2657/Add.l. 
August 12, 1954. 69 pp. mimeo. 
Information from Nou-Self-Governing Territories: Sum- 
mary and Analysis of Information Transmitted 
Under Article 73 e of the Charter: Report of the 
Secretary-General. Summary of information trans- 
mitted by the British Government. A/2657/ Add.2. 
August 13, 1954. 74 pp. mimeo. 
Question of Organizing an International Professional 
Conference To Prepare the Final Text of an Interna- 
tional Code of Ethics for the Use of Information 
Personnel. Report of the Secretary-General. 
A/2691. August 16, 1954. 12 pp. mimeo. 
Constitutions, Electoral Laws and Other Legal Instru- 



550 



ments Relating to PoUtical Rights of Women. 
Memorandum liy the Secretary-General. A/2692. 
August 18, 1954. 52 pp. mimeo. 
Election of Five Members of the International Court of 
Justice. List of Candidates Nominated by the 
National Groups. Note by the Secretary-General. 
A/2695. S/32S1. August 20, 1954. 36 pp. mimeo. 
Appointments To Fill Vacancies in the Membership of 
Subsidiary Bodies of the General Assembly. United 
Nations Administrative Tribunal. Note by the Sec- 
retary-General. A/2699. August 23, 1954. 2 pp. 
mimeo. 
Questions Relating to Economic Development. Memo- 
randum by the Secretary-General. A/2702. August 
23, 1954. 3 pp. mimeo. 
Supplementary List of Items for the Agenda of the Ninth 
Regular Session of the General Assembly: Item 
Proposed by Greece. Application, Under the Aus- 
pices of the United Nations, of the Principle of Equal 
Rights and Self-Detennination of Peoples in the Case 
of the Population of the Island of Cyprus. Letter 
dated 16 August 1954 to the Secretary-General from 
the President of the Council of Ministers of Greece. 
A/2703. August 20, 1954. 7 pp. mimeo. 
Supplementary List of Items for the Agenda of the Ninth 
Regular Session of the General Assembly : Item Pro- 
posed by Burma. Complaint by the Union of Burma 
Regarding Aggression Against it by the Government 
of the Republic of China. Letter dated 20 August 
1954 from the Permanent Representative of Burma 
to the United Nations, addressed to the Secretary- 
General. A/2704. August 20, 1954. 2 pp. mimeo. 
Freedom of Information: Report of the Economic and 
Social Council. Note by the Secretary -General. 
A/2705. August 23, 1954. 2 pp. mimeo. 
Supplementary List of Items for the Agenda of the Ninth 
Regular Session of the General Assembly : Item Pro- 
posed by Australia. Admission to the United Nations 
of Laos and Cambodia. Cablegram dated 22 August 
1954 from the Minister for External Affairs of 
Australia, addressed to the Secretary-General. 
A/2709. August 23, 1954. 1 p. mimeo. 
Supplementary List of Items for the Agenda of the Ninth 
Regular Session of the General Assembly : Item Pro- 
posed by Costa Rica. Establishment of a World Food 
Reserve. Letter dated 22 August 1954 from the 
Permanent Representative of Costa Rica to the United 
Nations, addressed to the Secretary-General. 
A/2710. August 23, 1954. 7 pp. mimeo. 

Disarmament Commission 

Letter Dated 22 July 1954 from the Representative of 
India to the Chairman of the Disannament Com- 
mission. DC/54, July 23, 1954. 1 p. mimeo. 

Fourth Report of the Disarmament Commission. DC/55, 
July 29, 19.54. 9 pp. mimeo. 

Security Council 

Report by the Chief of Staff of the Truce Supervision 
Organization to the Secretary-General C<mcerning 
the Jerusalem Incident. S/3278. August 6, 1954. 
27 pp. mimeo. 



Deparfment of State Bulletin 



October 11, 1954 



Index 



Vol. XXXI, No. 798 



American Repuhllca. U.S. Kelatloiis Wlih Latin Araerlra (Bohan) . 535 

Aslii. Foreign Kolatlons Volume m 

Auairla. Austria Thanks U.S. for Gift of Fodder Corn MO 

Canada 

Bill To Control Ixsvol of Lake Michigan Vetoed (Elsenhower) .... 531) 

U.S., Canada Agree on Need for Distant Early Warning Line .... S39 

Omgreas, The. Dill To Control Level of Lake Michigan Vetoed 

(Elsenhower) 539 

Economic Affairs 

Cooreratlng To Improve Free World's Economy (Humphrey, Elsen- 
hower) 548 

Pormid Opening of U.S.-Phlllpplne Trade Talks 542 

Negotiations on UevLslon of Philippine Trade .Agreement .Ml 

D. S. Relations With Latin America (Bohan) 535 

Edncallonal Exchange. Department Engages AXT.\ 543 

Eurupv 

Asrcement on Uestoratlon of German Sovereignty and German A.vso- 
i iiitlon With Western Defense System (text of Final .\ct of London 
Conference and statements by Dulles) 515 

Text of 194S Brussels Pact 628 

Foreign Scrrice 

ConsiilLir Ollices 544 

First Foreign Service OIHcers Under New Program Take Oath ... 544 

Legation In Libya Elevated to Embassy 544 

Recess Appointments (Hill, Tappln, Woodward) 544 

France. U.S.-French Talks on Indochina (text of communique) . . 534 

Gcmiany 

Agreement on Restoration of German Sovereignty and German Asso- 
ciation With Western Defense System (text of Final Act of London 
Conference and statements by Dulles) 515 

The American Memorial Library — A Monument to the Spirit of 
Berlin (Conant) 531 

Haiti. Visit of President Maglolre 538 

Indochina. U.S.-French Talks on Indochina (text of communique) . 634 

International Organizations and Meetings. Cooperating To Improve 

Free World's Economy (Uumphrey. Elsenhower) 548 

Japan. Loss of Americans and Japanese in Hakodate Typhoon (texts 

of messages) s-ll 

Libya. Legation in Libya Elevated to Embassy 544 

Mutual Secorily 

Agreement on Restoration of German Sovereignty and German Asso- 
ciation With Western Defense System (text of Final Act of London 
Conference and statements by Dulles) 515 

U. S., Canada .\eree on Need for Distant Early Warning Line. ... 539 

Philippines, The 

Formal Opening of U.S.-Phillpplne Trade Talks 542 

Negotiations on Revision of Philippine Trade Agreement Ml 

Presidential Documents. BlU To Control Level of Lake Michigan 

\etocJ 539 

Publications 

Foreign Relations Volume 544 

Recent Releases 546 

U. N. Documents 549 

Slate, Department of. Understanding U.S. Foreign Policy (Smith) . 530 

Treaty InTomiation 

Agreement on Restoration of German Sovereignty and German Asso- 
ciation With Western Defense System (text of Final Act of London 
Conference and statements by Dulles) 615 



Traaly Informallon— Oontlnuod 

Current Actions 543 

Formal Oiwnlng of U.S. •I'hlllpplno Trade Talks 542 

Negotiations on Itcvlsiiin of Phlltppino Trade Agreement Ml 

Text of IU48 Brussels Pact 628 

Dolled Nallons. Current U. N. Dooumonts 64l> 

Name Indtx 

Bohan, Merwln L .' 535 

Conant, Jamo8 B 631 

Dulio.'!, Secretary 619,623,633 

Eden, Anthony 626 

Ki.sonhowor, President 519, M9 

Faure, Edgar 634 

Hill, Robert M4 

Humphrey, George M M8 

Kolly, F. Patrick S'l 

Kocrnor, Tlwodor 640 

LaOhambre, Guy 534 

I.aur.'l, Jiis6 P 542 

Maglolre, Paul 638 

Pearson, Lester B 526 

Robertson, Walter S M2 

Smith, Walter Bedell 630,634,M1 

Tappin, John L 544 

Woodward, Robert F M4 

Yoshida, Shigeru 541 



Check List of Department of State 
Press Releases: September 27-October 3 

Releases may be obtained from the News Divi- 
sion, Department of State, Wasliington 2.'5, D. C. 

Press releases issued prior to September 27 which 
appear in this issue of the Bulletin are Nos. 511 
of September 16, 51G of September 20, 518 of Sep- 
tember 21, and 532 of September 25. 

Subject 
East German refugees. 
Note on Noel Fields. 
Note on Hermaun Field. 
Educational exchange. 
Educational exchange. 
Notice on Philippine trade hearings. 
Correspondence with Yoshida. 
Contract with .\NTA. 
U.S.-French talks on Indochina. 
First FSO's under new program. 
Educational exchange. 
Smith : Retirement statement. 
Barbour : International Peasant Union. 

*Not printed. 

tHeld for a later issue of the Bulletin. 



No. 


Date 


•534 


9/27 


t535 


9/28 


t536 


9/28 


♦537 


9/28 


•538 


9/28 


539 


9/28 


540 


9/28 


541 


9/29 


542 


9/29 


543 


9/30 


•544 


10/1 


545 


10/1 


t546 


10/2 




United States 
Government Printing Office 

DIVISION OF PUBLIC DOCUMENTS 

Washington 25» D. C. 



PENALTY FOR PRIVATE USE TO AVC 
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OFFICIAL BUSINESS 



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Department 

of 



Intervention of International 
Communism in Guatemala 



Publication 5556 



35 cents 



Nearly 100 pages of official statements and documents tell the 
story of the recent intervention of the international Communist 
movement in Guatemala. 



Part One of this publication consists of statements by Secre- 
1^ I I tary Dulles, Ambassador Lodge, and Ambassador Dreier, to- 

\ I SiTP gether with the Caracas Declaration of Solidarity and U.S. 

y lulw Senate Concurrent Resolution 91, reaffirming United States 

support of the Declaration. 

Part Two represents a case history of a bold attempt on the 
part of international communism to get a foothold in the West- 
ern Hemisphere by gaining control of the political institutions 
of an American Republic. The situation in Guatemala has 
changed since this document was prepared. Nevertheless, it is 
the view of the Government of the United States that the facts 
in this document constitute a grim lesson to all nations and 
peoples which desire to maintain their independence. 

Copies may be purchased from the Superintendent of Docu- 
Order Form ments. Government Printing Office, Washington 25, D. C. 

To: Supt. of Documents "" — 

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Vol. XXXI, No. 799 
October 18, 1954 




FOUR-POWER AGREEMENT ON TRIESTE 555 

THE DEFENSE OF EUROPE: A PROGRESS REPORT • 

by Gen. Alfred M. Gruenther 562 

EUROPEAN COMMAND REPORTS ON OFFSHORE 

PROCUREMENT PROGRAM 567 

PROBLEIMS IN THE FAR EAST • by Everett F. Drumright . 571 

THE CONCEPT OF SELF-DETERMINATION IN 

AMERICAN THOUGHT • by Waltvorth Barbour .... 576 



For index see inside back cover 




"■«»«• o» 



^^-^^^. bulletin 



Vol. XXXI, No. 799 • Publication 5616 
October 18, 1954 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 25, D.C. 

Peice: 

52 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 Department 
or State Bulletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes se- 
lected press releases on foreign policy, 
issued by the White House and the 
Department, and statements and ad- 
dresses made by the President and by 
the Secretary of State and other offi- 
cers of the Department, as well as 
special articles on various phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreements to 
which the United States is or may 
become a party and treaties of gen- 
eral international interest. 

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



Four-Power Agreement on Trieste 



PreBs release 554 dated October 5 
ANNOUNCEMENT OF AGREEMENT 

At noon today in London a Memorandum of 
Undei-standing on Trieste was initialed by repre- 
sentatives of the Governments of the United 
States, the United Kingdom, Italy and Yugo- 
slavia. Llewellyn E. Thompson, United States 
Ambassador to Austria, initialed the Memo- 
randum of t'nderstanding for the United States 
and Mr. Geoffrey Harrison. Assistant Under-Sec- 
retary of State in the British Foreign Office, in- 
itialed for the United Kingdom. The Ambassa- 
doi-s of Italy and Yugoslavia in London, Signer 
Manlio Brosio and Dr. Vladimir Velebit, initialed 
the document for their two Governments. The 
text of the Memorandum of LTnderstanding is 
being communicated to the Security Council of 
the United Nations. 

Today's initialing came as a successfid conclu- 
sion to conversations among the four Govermnents 
which have been carried on for eight months in 
an endeavor to work out arrangements for the 
Free Territory' of Trieste wliich would be accept- 
able to the Governments of Italy and Yugoslavia. 
The United States Government welcomes the 
understanding reached today which it believes will 
lead to improved relations and closer cooperation 
between Italy and Yugoslavia. The United 
States Government takes this opportunity to de- 
clare it will give no support to claims of either 
Yugoslavia or Italy to territory under the sov- 
ereignty or administration of the other. The 
United States Goverimient is confident that it will 
be possible for the two countries to resolve any 
outstanding problems by friendly negotiations in a 
sjiirit of mutual understanding. 

Arrangements are being made for the early 
termination of Allied Military Government, the 



withdrawal of American and British forces from 
the area under their occupation and the assump- 
tion by Italy and Yugoslavia of responsibility in 
the areiis as defined by the agi'eement initialed 
today. 

EXCHANGE OF LETTERS 

Identical Letters From Mr. Harrison and 
Mr. Thompson to Ambassador Brosio 

My Government refers to the decision recorded 
in the Memorandum of Understanding of the 5th 
of October, 19.54 between the Govemments of 
Italy, the United Kingdom, the United States and 
Yugoslavia by the terms of which responsibility 
for the area of the Free Territory of Trieste ad- 
ministered by the United Kingdom-United States 
Military Govermnent will be relinquished by it and 
assumed by Italy. In order to assure that the ter- 
mination of Military Government and the assump- 
tion of administration by Italy as well as the 
withdrawal of United Kingdom and United States 
troops and entry of Italian troops take place 
promptly and smoothly, it is proposed that the 
Italian Government designate a representative to 
meet at an early date with the Commander of 
the United Kingdom-United States Zone to formu- 
late the pertinent arrangments. My Government 
hopes to be able to carry out these steps within one 
month of the date of initialling of the Memoran- 
dum of Understanding. 

Identical Letters From Ambassador Brosio to 
Mr. Harrison and Mr. Thompson 

It gives me pleasure to acknowledge, etc. etc., 

My Government has designated General Ed- 

moudn de Renzi as its representative to meet with 



Ocfober 18, 7954 



555 



Statement by Secretary Dulles 
on Trieste Agreement 

Press release 553 dated October 5 

Ever since the enil of the war there has been 
controversy as to the status of the Trieste area. 
The United States as one of the occupying powers 
has had a responsibility in this matter. It had 
become urgent to arrive at a settlement because 
the lacli of a settlement has created strain between 
two Governments — Italy and Yugoslavia — and made 
it difficult to develop a solid and dependable col- 
lective defense of Southern Europe. 

Now at last this difficult problem is to be settled 
as the result of many months of negotiations. The 
United States and the United Kingdom have in this 
matter extended their good offices to enable the 
Italian and Yugoslav Governments to come to a 
mutually satisfactory solution. This settlement 
will restore to Italy the city of Trieste and the 
surrounding area and will allow the retention by 
Yugo.slavia of that portion of the Free Territory 
of which it is the occupying power and where the 
people are predominantly Yugoslav. The agree- 
ment includes provision for the protection of 
minorities. 

The United States hails this gratifying demon- 
stration of the will for peace showing itself 
through deeds. The problem has been one of great 
complexity, which defied solution for 9 years. But 
it has now yielded to the broad statesmanship 
which has been put to work upon it. This event 
will, we hope, open a new era which will bring 
political tranquillity to the peoples directly in- 
volved and greater security to all of the free nations 
of Europe. 

The solution of this matter reflects credit upon 
many. I am confident, however, that none will 
question the outstanding contribution to a settle- 
ment which was made by United States Ambassador 
L. E. Thompson and Mr. Geoffrey Harrison, United 
Kingdom Assistant Under-Secretary of State, who 
dealt with this matter continuously for 8 months. 
U.S. Deputy Under Secretary Robert D. Murphy, 
on his recent trip to Europe, composed the small 
but stubborn remaining differences. 



the Commander of the United Kingdom-United 
States Zone of the Free Territory of Trieste to 
formuhite the arrangements for the change in ad- 
ministration in that area of the Free Territory of 
Trieste for which Italy will assume responsibility. 
It is understood that as soon as the boundary ad- 
justments have been carried out the entry of 
Italian troops will take place at the time specified 
in these arrangements and simultaneously with 



the final withdrawal of British and American 
forces and the assumption of responsibility by 
Italy. 



MEMORANDUM OF UNDERSTANDING BETWEEN 
THE GOVERNMENTS OF ITALY, THE UNITED 
KINGDOM, THE UNITED STATES AND YUGO- 
SLAVIA REGARDING THE FREE TERRITORY 
OF TRIESTE 

1. Owing to the fact that it has proved impos- 
sible to put into effect the provisions of the Italian 
Peace Treaty relating to the Free Territory of 
Trieste, the Governments of the United Kingdom, 
the United States and Yugoslavia have main- 
tained since the end of the war military occupa- 
tion and government in Zones A and B of the 
Territory. When the Treaty was signed, it was 
never intended that these responsibilities should 
be other than temporary and the Governments of 
Italy, the United Kingdom, the United States and 
Yugoslavia, as the countries principally con- 
cerned, have recently consulted together in order 
to consider how best to bring the present unsatis- 
factory situation to an end. As a result they have 
agreed upon the following practical arrangements. 

2. As soon as this Memorandimi of Under- 
standing has been initialled and the boundary ad- 
justments provided by it have been carried out, 
the Governments of the United Kingdom, the 
United States and Yugoslavia will terminate mili- 
tary government in Zones A and B of the Terri- 
tory. The Governments of the United Kingdom 
and the United States will withdraw their mili- 
tary forces from the area north of the new bound- 
ary and will relinquish the administration of that 
area to the Italian Government. The Italian and 
Yugoslav Governments will forthwith extend 
their civil administration over the area for which 
they will have responsibility. 

3. The boundary adjustments referred to in 
paragraph 2 will be carried out in accordance with 
the map at Annex I.' A preliminary demarca- 
tion will be carried out by representatives of Al- 
lied Military Government and Yugoslav Military 
Government as soon as this ]SIemorandum of Un- 
derstanding has been initialled and in any event 
within three weeks from the date of initialling. 
The Italian and Yugoslav Goveniments will im- 



' Not printed. The map reproduced here was especially 
prepared for the Kulletin. 



556 



Department of State Bulletin 




10719 6-47 iftrv'Md 10 M) 



mediately appoint a Boundary Commission to ef- 
fect a more precise demarcation of the boundary 
in accordance with the map at Annex I. 

4. The Italian and Yugoslav Governments agree 
to enforce the Special Statute contained in Annex 
II. 

5. The Italian Govermnent undertakes to main- 
tain the Free Port at Trieste in general accord- 
ance with the provisions of Articles 1-20 of Annex 
VIII of the Italian Peace Treaty.^ 

6. The Italian and Yugoslav Governments agree 
that they will not undertake any legal or ad- 
ministrative action to prosecute or discriminate 
against the person or property of any resident of 
the areas coming under their civil administration 
in accordance with this Memorandum of Under- 
standing for past political activities in connexion 
with the solution of the problem of the Free Ter- 
ritory of Trieste. 

7. The Italian and Yugoslav Governments agree 
to enter into negotiations within a period of two 
months from the date of initialling of this Memo- 
randum of Understanding with a view to con- 
cluding promptly an agreement regulating local 
border traiBc, including facilities for the move- 
ment of the residents of border areas by land and 
by sea over the boundary for normal commercial 
and other activities and for transport and commu- 
nications. This agreement shall cover Trieste and 
the area bordering it. Pending the conclusion 
of such agreement, the competent authorities will 
take, each within their respective competence, ap- 
propriate measures in order to facilitate local 
border traffic. 

8. For a period of one year from the date of 
initialling of this Memorandum of Undei-stand- 
ing persons formerly resident ("pertinenti"-"zavi- 
cajni") in the areas coming under the civil ad- 
ministration either of Italy or of Yugoslavia shall 
be free to return immediately thereto. Any jjer- 
sons so returning, as also any such who have al- 
ready returned, shall enjoy the same rights as the 
other residents of these areas. Their properties 
and assets shall be at their disposal, in accordance 
with existing law, unless disposed of by them in 
the meantime. For a period of two years from 
the date of initialling of this Memorandum of 
Understanding, persons f oi-merly resident in either 
of these areas and who do not intend returning 



thereto, and persons presently resident in either 
area who decide within one year from the date of 
initialling of this INIemorandum of Understand- 
ing to give up such residence, shall be pennitted to 
remove their movable property and transfer their 
funds. No export or import duties or any other 
tax will be imposed in connexion with the moving 
of such property. Persons wherever resident who 
decide to sell their movable and immovable prop- 
erty within two years from the date of initialling 
of this Memorandum of Understanding will have 
the sums realised from the sale of such property 
deposited in special accounts with the National 
Banks of Italy or Yugoslavia. Any balance be- 
tween these two accounts will be liquidated by the 
two Governments at the end of the two year pe- 
riod. Without prejudice to the immediate imple- 
mentation of the provisions of this paragraph the 
Italian and Yugoslav Governments undertake to 
conclude a detailed agreement within six months 
of the date of initialling of this Memorandum of 
Understanding. 

9. This Memorandum of Understanding will be 
communicated to the Security Council of the 
United Nations.^ 

L<iNix)N. the 5th of October, 195^. 

Manlio Brosio 
Geoffrey W. Harrison 
Llewellyn E. Thompson 
Dr. Vladimir Velebit 



Annex II. 



SPECIAL STATUTE 



Whereas it is tlie common intention of the Italian and 
Yugoslav Governments to ensure human rishts and funda- 
mental freedoms witliout discrimination of race, sex, lan- 
suage and religion in the areas coming under their 
administration under the terms of the present Memoran- 
dum of Understanding, it Is agreed : 

1. In the administration of their resp<>ctive areas the 
Italian and Yugoslav authorities shall act in accordance 
witli the principles of the Universal Peclaration of Human 
Rights adopted hy the General Assembly of the United 
Nations on the 10th of December, 1948, so that all inhabi- 
tants of the two areas without discrimination may fully 
enjoy the fundamental rights and freedoms laid down 
in the al'oresaid Dcchiration. 

2. The members of the Yugoslav ethnic group in the 



'Department of State publication 2!)6(). 



^ Transmitted to the President of the Security Council 
on Oct. 5 and circulated as U.N. doc. S/;!:«)l. 



558 



Department of State Bulletin 



nrea iiiliiiiiiislonMl by Italy iiiul tlio iiieiiibors of tlio Itnliau 
ethnic Kronp in tlie nrea administered by Ytigoslavia shall 
enjoy eiiiiality of rij-'hts and treatment with the other 
inhabitants of the two areas. 
This equality implies tlint they shall enjoy: 

(a) eqnality with other eitizens rei;ardinK i>oliti<'al and 
civil risihts as well as other Imiiian rit;l>ts and 
fundamental friH-doins fiuaranteed by Article 1 ; 

(b) e<]ual rii-'hts in acquiring or i>erforining any public 
services, functions, professions and honours ; 

(c) equality of access to public and administrative 
office: in this regard the Italian and Yugoslav ad- 
ministrations will be guided by the iirinciple of 
facilitating for the Yugoslav ethnic group and for 
the Italian ethnic grouj), respectively, under their 
administration a fair representation in adminis- 
trative positions, and especially in those fields, 
such as the inspectorate of schools, where tie 
interests of such inhabitants are particularly 
involvetl ; 

(d) equality of treatment in following their trade or 
profession in agriculture, commerce, industry or 
any other field, and in organising and operating 
economic associations and organisations for this 
purpose. Such equality of treatment shall concern 
also taxation. In this regard persons now engaged 
in a trade or profession who do not possess the 
requisite diploma or certificate for carrying on such 
activities, shall have four years from the date of 
initialling of the present Memorandum of Under- 
standing within which to acquire the necessary 
diploma or certificate. They will not be prevented 
from exercising their trade or profession because 
of failure to have the requisite documents unless 
they have failed to acquire them within the afore- 
mentioned four year i)eriod ; 

(e) equality of treatment in the use of languages as 
defined in Article 5 below ; 

(f) equality with other citizens in the general field of 
social assistance and pensions (sickness benefits, 
old age and disability pensions including disabili- 
ties resulting from war, and pensions to the de- 
pendents of those killed in war). 

3. Incitement to national and racial hatred in the two 
areas is forbidden and any such act shall be punished. 

4. The ethnic character and the unhampered cultural 
development of the Yugoslav ethnic grou|) in the Italian 
administered area and of the Italian ethnic group in the 
Yugoslav administered area shall be safeguarded. 

(a) They shall enjoy the right to their own press in 
their mother tongue; 

(b) the educational, cultural, social and sports organi- 
sations of both groups shall be free to function in 
accordance with the existing laws. Such organi- 
sations shall be granted the same treatment as those 
accorded to other corresponding organisations in 
their respective areas, especially as regards the 
use of public buildings and radio and assistance 
from public financial means; and the Italian and 
Yugoslav authorities will endeavour to ensure to 



such organisations the continued u.s<' of the faclU- 
lies they now enjoy, or of comparable facilities; 
(c) Uindergarleii, primary, swondaiy and |irofessloual 
school teaching in the mother tongue shall be ac- 
iiirdcd to both groups. Such scIuhiIs shall be main- 
tained in all localities in the Italian administered 
area where there are children members of the 
Yugo.slav ethnic group, and in all localities in the 
Yugoslav administered area where there are chil- 
dren members of the Italian ethnic group. Tlie 
Italian and Y'ugoslav Governments agree to main- 
tain the existing schools as set out in the list at- 
tached hereto for tlie ethnic groups in the area 
under their administration and will consult in the 
Mixed Committee provided for in the final Article 
of this Statute before closing any of these schools. 

Such schools shall enjoy equality of treatment 
with other .schools of the same type in the area ad- 
ministered, resiwctively, by Italy and Yugoslavia 
as regards provision of textbooks, buildings and 
other material means, the number and position of 
teachers and the recognition of diplomas. The 
Italian and Yugoslav authorities shall endeavour 
to ensure that the teaching in such schools will 
be performed by teachers of the same mother tongue 
as the pupils. 

The Italian and Y'ugoslav authorities will 
promptly introduce whatever legal prescriptions 
may he necessary so that the permanent organisa- 
tion of such schools will be regulated in accordance 
with the foregoing provisions. Italian speaking 
teachers, who on the date of the initialling of the 
present Memorandum of Understanding are em- 
ployed as teachers in the e<lucational system of the 
Yugoslav administered area and Slovene speaking 
teachers who <m the said date are employed as 
teachers in the educational system of the Italian 
administered area shall not be dismissed from their 
positions for the reason that they do not possess 
the requisite teaching diploma. This extraordi- 
nary provision shall not be used as a precedent or be 
claimed to apply to any ca.ses other than the cate- 
gories specified above. Within the framework of 
their existing laws the Yugoslav and Italian author- 
ities will take all reasonable measures to give the 
aforementioned teachers an opimrtunity, as pro- 
vided in Article 2 (d) above, to qualify for the same 
status as regular members of the teaching staff. 

The educational programiues of such schools must 
not be directed at interfering with the national 
character of the pupils. 

5. Members of the Yugoslav ethnic group in the area 
administered by Italy and memliers of the Italian ethnic 
group in the area administered by Yugoslavia shall be 
free to use their language in their jiersonal and oflicial re- 
lations with the administrative and judicial authorities of 
the two areas. They shall have the right to receive from 
the authorities a reply in the same language; in verbal 
replies, either directly or through an interpreter: in cor- 
respondence, a translation of the replies at least is to be 
provided by the authorities. 



October J 8, J 954 



559 



Public documents concerning members of these etlmic 
groups, including court sentences, shall be accompanied 
by a translation in the appropriate language. The same 
shall apply to official announcements, public proclamations 
and publications. 

In the area under Italian administration inscriptions on 
public institutions and the names of localities and streets 
shall be in the language of the Yugoslav ethnic group as 
well as in the language of the administering authority in 
those electoral districts of the Commune of Trieste and in 
those other communes where the members of that ethnic 
group constitute a significant element (at least one 
quarter) of the poinilation; in those communes in the 
area under Yugoslav administration where the members 
of the Italian ethnic group are a significant element (at 
least one quarter) of the population such inscriptions and 
names shall be in Italian as well as in the language of the 
administering authority. 

6. The economic development of the Yugoslav ethnic 
population in the Italian administered area and of the 
Italian ethnic population in the Yugoslav administered 
area shall be secured without discrimination and with a 
fair distribution of the available financial means. 

7. No change should be made in the boundaries of the 
basic administrative units in the areas which come under 
the civilian administration of Italy or Yugoslavia with a 
view to prejudicing the ethnic composition of the units 
concerned. 

8. A special Mixed Yugoslav-Italian Committee shall be 
established for tlie purpose of assistance and consultation 
concerning prolUems relating to the protection of the 
Yugoslav ethnic group in the area under Italian adminis- 
tration and of the Italian ethnic group in the area under 
Yugoslav administration. The Committee shall also 
examine complaints and questions raised by individuals 
belonging to the respective ethnic groups concerning the 
implementation of this Statute. 

The Yugoslav and Italian Governments shall facilitate 
visits by the Committee to the area under their administra- 
tion and grant it every facility for carrying out its 
responsibilities. 

Both Governments undertake to negotiate forthwith 
detailed regulations governing the functioning of the 
Committee. 
London, the 5th of October, 1954. 

Manlio Brosio 

Dr. Vladimib Velebit 



List of Existing Schools 

Referred to in Article 4 (e) of Annex II 
(Special Statute) of Memorandum of Understanding 

I. Slovene Schools presently funclioning in the area coming 
under the adminislralion uf Italy in accordance with the 
Memorandum of Understanding 

1. Kindergartens 

a) Municipality of Trieste (Trst) : 

Barcola (Barkovlje) Via San Fortunato 1, 

Gretta (Greta) 
San Giovanni (Sv. San Giacomo (Sv. Jakob) 

Ivan) 
Servola (Skedenj) San Saba (Sv. Sobota) 



560 



Longera (Lonjer) Basovizza (Bazovica) 

Trebieiano (Trebce) Villa Opieina (Opcine) 
S. Croce (3v. Kriz) Prosecco (Prosek) 

b) Commune of Duino-Aurisina (Devin-Nabrezin i • 
Malchina (Mavhinje) Duino (Devin) 
Aurisina (Nabrezina) 

c) Commune of Sgonico (Zgonik) : 

Sgonico (Zgonik) Gabrovizza (Gabrovica ) 

d) Commune of Monrupino (Repentabor) : 
Monrupino (Repentabor) 

e) Commune of S. Dorligo della Valle (Dolina) : 

S. Dorligo d. Valle Bagnoli della Rosandra 

(Dolina) (Boljunec) 

S. Antonio in Bosco Domio (Domjo) 

(Borst) 

2. Elementary Schools 

a) Municipality of Trieste (Trst) : 

S. Giacomo (Sv. Via S. Francesco (Ul. Sv 

Jakob) Franciska) 

Via Donadoni (Ul. Servola (Skedenj) 

Donadoni) 

Cattinara (Katinara) Rioano (Rojan) 

S. Anna (Sv. Ana) S. Giovanni (Sv. Ivan) 

Barcola (Barkovlje) Villa Opieina (Opcine) 

Prosecco (Prosek) S. Croce (Sv. Kriz) 

Trebieiano (Trebce) Gropada (Gropada) 
Basovizza (Bazovica) 

b) Commune of Duino-Aurisina (Devin-Nabrezina) 
Aurisina (Nabrezinaj Sistiana (Sesljan) 
Duino (Devin) S. Giovanni di Duino 

(Stivan) 
Medeazza (Medja Ceroglie (Cerovlje) 

vas) 
Malchina (Mavhinje) Slivia (Slivno) 
S. Pelaggio (Sem- 

polaj) 

c) Commune of Sgonico (Zgonik) : 

Sales (Salez) Gabrovizza (Gabrovica) 

Sgonico (Zgonik) 

d) Commune of Monrupino (Repentabor): Mon- 

rupino (Repentabor) 

e) Commune of San Dorligo della Valle (Dolina): 
S. Dorligo della Valle Bagnoli della Rosandra 

(Dolina) (Boljunec) 

S. Antonio in Bosco S. Giuseppe della Chiusa 

(Borst) (Ricmanje) 

Domio (Domjo) Caresana (Mackovlje) 

Pese (Pesek) 

f) Commune of Muggia (Milje) : 

Stramare (Stramar) S. Barbara (Sv. Barbara) 

3. Professional Schools and Courses 

a) Municipality of Trieste (Trst) : 

Industrial Professional School at Roiano (Rojan) 
Industrial Professional School at S. Giovanni 

(Sv. Ivan) 
Two-Ycar Industrial Professional Course at 

Villa Opieina (Opcine) 
Two- Year Commercial Professional Course at 

Prosecco (Prosek) 
Two-Y'ear Commercial Professional Course at 

Cattinara (Katinara) 
Professional Cour.se at S. Croce (Sv. Kriz) 

b) Commune of Duino-Aurisina (Devin-Nabrezina) : 
Two-Year Industrial Professional Course at 

Aurisina (Nabrezina) 

c) Commune of S. Dorligo della Valle (Dolina) : 
Two- Year Industrial Professional Course at S. 

Dorligo d. Valle (Dolina) 
The above-mentioned professional courses shall 
be changed into professional schools in accord- 
ance with the Italian law. 

Department of State Bulletin 



4. Secondary SchooU— Trieste (Tret) : 

Junior Higli Scliool 

Via (lolie Scuole Nuove-S. Giacomo (Sv. Jakob) 
Senior High School 

Via I.iuzarctto Vecchio, 9 
State Teachers' School 

Piazzale Gioherti— S. Giovanni (Sv. Ivan) 
Commercial Academy 

Piaz/.ale Gioberti, S. Giovanni (Sv. Ivan) 

II. llalian Schools presently functioning in the area coming 
under the adminislralion of Yugoslnvia in accordance 
with the Alemorandum of Understanding 

1. Kindergartens 
Kopar (Capodistria) 

2. Italian classes in Kindergartens in: 

Izola (Isola d'lstria) Secovlje (Sicciole) 

Piran (Pirano) Novigrad (Cittanova) 

Bujc (Buie) Umag (Umago) 



3. Elementary Schools 

Umag (Umago) 
Kostajnica (Castagna) 
Kopar (Capodistria) 
Sv. Lucija (S. Lucia) 
Buje (Buie) 
Momjan (Momiano) 
Izola (Isola d'lstria) 
Semedela (Semedella) 



» 



Brtonigla (Verteneglio) 
Novigrad (Cittanova) 
Piran (Pirano) 
Secovlje (Siccioh) 
Groznjan (Grisignana) 
Sv. Nikolai (S. Nicolo) 
Prade (Prade) 
Strunjan (Strignano) 



4. Professional Schools 

Kopar (Capodistria) 

Izola (Isola d'lstria) 

Secovlje (Sicciole) 

Buje (Buie) 

Umag (Umago) 

Novigrad (Cittanova) 

Italian Division of Trade School for Girls 

(Three year course) at Kopar (Capodistria) 

5. Secondary Schools 

Classical High School (eight years) 
Kopar (Capodistria) 

Scientific High School (eight years) Piran (Pirano) 
Commercial Technical School (two years) Deola 
(Isola d'lstria) 



MESSAGES FROM SECRETARY DULLES TO 
ITALIAN AND YUGOSLAV FOREIGN MINISTERS 

Secretary Dulles to Foreign Minister Gaetano 
Martina of Italy 

Press release 556 dated October 6 

On the occasion of the announcement of agree- 
ment on Trieste I wish to convey to yon and your 
representatives who dealt with this issue my pro- 
found <rratification at the successful outcome of 
tiie London negotiations. This accord is proof in- 
deed of what can be achieved through cooperation 
and understanding when there exists a sincere de- 
sire to find a solution to an involved interna- 
tional problem. 



Tliis agreement is a real achievement of states- 
mansliip which should assist substantially in the 
development of greater security in Southeastern 
Europe against any i)ossible encroaciunent. I am 
sure tiuit you share with me the hoi)e that this 
accord will foster tlie enhancement of peace and 
tlie well-being of the peoples of Europe. 

Secretary Dulles to Foreign Minister Koca Popo- 
vic of Yugoslavia 

Press release 557 dated October 6 

On the occasion of tlie announcement of agree- 
ment on the Trieste question, I wish to convey to 
you and your representatives who dealt with this 
issue my profound gratification at the successfid 
outcome of the London negotiations. I wish to 
congratulate you and them on the patience and 
understanding shown. 

This accord is an excellent demonstration of 
what can be achieved through cooperation and 
understanding when tiiere exists a sincere desire 
to find a solution to a difficult international prob- 
lem. It is a real achievement of statesmanship 
and lays a firmer foundation for cooperation 
among free nations to increase tlieir mutual secu- 
rity and welfare. In addition to these improved 
general prospects the settlement of this issue also 
opens the way to concrete and forward looking 
steps in the solution of economic and military 
problems in which your country and mine have a 
conunon concern. 

Herbert Hoover, Jr., Assumes 
Office as Under Secretary 

Press release 549 dated October 4 

Following is the text of a statetnent made hy 
Herbert Hoover, Jr., upon assuming office as 
Under Secretary of State 07i October 4- 

It is with a deep sense of responsibility that I 
undertake the duties of the Under Secretary of 
State at the invitation of President Eisenhower 
and of yourself [i.e. Secretary Dulles]. 

I want you to know tliat 1 feel that it is a very 
great honor to join with the many membei-s of the 
Department and of tlic Foreign Service wlio have 
dedicated themselves to the service of our country 
in these difficult times. And I particularly feel 
that it is a great privilege to serve under you in 
the constructive leadership which you are giving 
so actively to our foreign policy. 



October ?8, T954 



561 



The Defense of Europe: A Progress Report 



hy Gen. Alfred M, Gruenther 

Supreme Commander, Allied Powers Europe ' 



As you probably know, my assignment calls f or 
the defense of Europe, from the northern tip of 
Norway to the eastern bordei-s of Turkey, a dis- 
tance of some 4,000 miles. My purpose this 
evening is to give you a progress report on how 
we are doing in Europe. 

The day before yesterday, I left Germany — 
Northern Germany — where I had attended 4 days 
of maneuvers. The maneuvei-s that we have had 
this year are the largest we have had since General 
Eisenhower came to Europe in the early part of 
1951. And I can say that they were also the most 
successful maneuvers that we have staged. I 
spent 2 days with General Hoge, of the Central 
Army Group, which was largely an American- 
French maneuver, and a clay and a half with Gen- 
eral Gale of the Northern Army Group — General 
Gale being a British Commander. It was a two- 
sided maneuver that had as the commander on one 
side a Belgian Commander and under liim two 
Belgian divisions, a Canadian brigade, American 
troops, atomic artillery, and British troops. On 
the opposing side was a Netherlands Commander 
with British troops, Netherlands troops, and some 
American troops, and, again, atomic artillery. 

That maneuver is the most successful one we 
have had, and the improvement in the functioning 
of our troops was very marked over what it was 
7 years ago and very obvious over what it was a 
year ago. As you may have read in the press, 
the atomic side was played very extensively. In 
the tactical use of the atomic bomb, atomic bombs 
wei-o dropped from airplanes and also projected 



'Address mado before the National Security Industrial 
Association at New Yorli, N. Y., on Sept. 29. 



from atomic artillery. It is still too early to eval- 
uate the lessons of the maneuver, but it is clear 
that we are on the threshold of a new type of 
warfare which is going to change, to a consider- 
able extent, tactics and organization. However, 
having said that, I also should like to reiterate that 
it does not change the necessity for the troops on 
the ground or the so-called tactical air support 
which you know so well. 

I'd like now to move to our general progress in 
tlie North Atlantic Treaty Organization from the 
standpoint of buildup of our forces, starting with 
the time when General Eisenhower arrived in 
January 1951. Now he found, when he arrived in 
Europe, a very low state of morale. You will re- 
call at that time that we were about to be ejected 
from the Korean peninsula. And in Europe it- 
self, the new and better world which we had been 
led to believe was going to follow the last war 
had given way, as a result of incidents in Europe 
and throughout the world, to the stark realism 
that Soviet imperialism was again on the march. 
General Eisenhower found precious few troops. 
But what was woi-se still was that there was no 
way to use the troops that he did have, no way to 
employ those resources in a common strategj'. 

Now, some 3% years later, that situation has 
changed considerably. We now have, division- 
wise, between 90 and 100 divisions. Not all of 
those are D-day divisions; some are D plus 15, some 
are D plus ?M. But they constitute a very sub- 
stantial force. In the field of aircraft — air forces 
— the increase lias been even greater, although 
that still happens to be one of our greatest short- 
ages. We feel that as of now we still do not have 
enough to meet an all-out act of Soviet aggression 
successfully, and that is why we have asked our 



562 



Department of State Bulletin 



|M)liticiil siiperioi-s, the North Athintic Council, to 
furnish nunv troops. And ono ideinent of that 
iiilditional stren<;tii iuis couu' In I he (juostion of 
German forces. 

Tlie second element, as we move ahead, is that it 
will take, from the time of decision, approximately 
2 yeai-s until we have Germai\ firoiuul forces, and 
approximately 3 years until we have Gennan tac- 
tical air forces. So we are actually moving our 
planning cycle ahead for a period about .'5 yeai-s 
hence. And we say that, as of that time, if we do 
have that German contribution and if we are able 
to use atomic bombs against an act of aggression, if 
it should take place, we will have a reasonably 
good chance of defending Europe successfully 
against an all-out act of Soviet aggression. Those 
two conditions, however, must be met. 

Now, of the status of the fii-st one you are well 
aware, namely, that after 7 years of consideration, 
a project for bringing the German troops into use 
for the defense of Europe was rejected by the 
French Parliament, and the nine foreign ministers 
are meeting in London right now — they finished 
their session this evening. It's now- a few minutes 
after 3 o'clock in the morning in I-(ondon, and 
those foreign ministers are sleeping, I hope peace- 
fully, getting ready for the session which starts 
again tomorrow morning at 11 o'clock. This is 
an extremely important session. It's vital that 
the nine foreign ministers meeting reach a solu- 
tion on this critical problem. 

France and EDC 

Having said that, I should like to spend a mo- 
ment so that you will understand why the French 
Parliament rejected the Edc. The idea of 
Edc — the European Defense Community — was to 
make a German contribution available for the de- 
fense of Europe. But, since that is more of a po- 
litical problem than a military problem, that new 
organization had to be backed by a political frame- 
work, and the framework was to be the European 
Defense Community — a move toward a united 
Europe with only six countries participating: 
France, Belgium, the Netherlands, Luxembourg, 
Italy, and AVestern (iermany. The French Parlia- 
ment decided that united concept, that federal con- 
cept, if you will, was premature. But it is well 
that you understand that most of the people in 
France, and a great many of the people who vot^-d 
against tiiis in the Parliament, were not against 



German rearmament as such. They were against 
that particular vehicle for bringing Gennan 
rearmament into being; and the part that they ob- 
jected to was this federalization, or, as it has been 
described in Eiiroix', tlie supernational aspe<'t of 
the European Defense Conununity Treaty. I 
bring that up because there has been considerable 
misundei-staiiding that thi' French are against 
German rearmament. 

Now there are many French wJio are against it, 
and T think you should know why they are against 
it because, whether you agree or not, I feel tliat it 
is essential in this alliance that we understand 
the point of view of the other man. You know well 
that France and (Jermany have had three wai-s in 
the last 80 years. You know that there was a large 
resistance movement in France against the Ger- 
mans during the war and that created a great 
amount of bitterness. You may not know that 
there were 700,000 French laborei-s deported to 
Germany, and many of them felt that they had a 
very mihappy existence. In addition to that, there 
were 240,000 of the so-called upper classes who 
were shipped to Germany and spent considerable 
time in prisons like Dachau and Buchenwald, and 
of that grouj), over 100,000 failed to return. So 
it is not difficult to see that there is a considerable 
amount of bitterness still existing on this subject. 

And in case you are inclined to be impatient of 
bitterness, I would recall to you that, after our own 
Civil War, the last state that came back into the 
Union i-eturned in 1877 — 12 years after the end of 
that war — and the bitterness did not end then. 
Those were people that we knew, that spoke the 
same language and were very good friends. 

So if you consider the idea of bitterness, please 
bear in mind that the French situation does have 
a jwint that should be considered. I don't say 
that, having considered it, they should not have 
passed Eiw, but I say that if we criticize them 
we should undei-stand their side of the argument. 

'\ATiat the solution is going to be at London it's 
too early to say. I am sure of this — I am sure 
Mr. Mendes-France, who is the French Premier, 
is going with the determination to solve this 
problem. I am sure that he is resolved to find an 
arrangement for bringing the Gennans into an 
organization where they will be able to contribute 
to tiie defense of Europe. What, again, w-ill be the 
means for that is a subject that is being negotiated 
now, and it would not be ])rofitable to go into that 
matter because the situation is extremely fluid. 



October J 8, J 954 



563 



Use of Atomic Power 

On the question of the second element, you'll 
recall that I said that in order to defend Eui-ope 
successfully we had to have a German contribution, 
which I think we are going to get, and we must 
also be able to use atomic bombs to repel an act of 
aggression. Now, in attacking that problem, I 
would like to tell you that this has been one of the 
strongest points that the Soviet propaganda has 
been directed against. The Soviets, if you will re- 
call, starting more than 2 yeare ago, have been say- 
ing, "We will agree to nothing in the way of dis- 
armament unless atomic bombs are banned." You 
will recall that, when the President made his 
atomic-pool proposal last December the eighth, the 
first answer of the Soviets was, "Yes, we shall 
participate provided that there shall be a banning 
of the atomic bomb." 

"WHien the disarmament convention met in Lon- 
don- — for about the fifth time in the last several 
years — in May of this year, there was no agreement 
because the Soviets said, "Yes, we'll consider dis- 
armament if the atomic bomb is banned. That 
must be the first thing." And that element is one 
of the main points of the Soviet propaganda now. 

Now you must understand, and I'm sure you 
do — and you'll forgive me if I labor the point — 
the Soviets are much more clever now than they 
have ever been before in the way they are handling 
their propaganda. We thought Uncle Joe was 
tough — and he was. But the new regime, the 
the triumvirate of Mr. Malenkov, Mr. Molotov, 
and Mr. Khrushchev, is infinitely more clever and 
infinitely more dangerous than Uncle Joe ever was. 
We miglit even say we never had it so good as 
under Uncle Joe. They are conducting a very 
tough campaign, and to meet that we must realize 
we are in the major leagues and are going to be in 
the major leagues for some time. 

Now, we feel that it would be a great error for 
the West to agree to the banning of atomic bombs 
because even with the German contribution we are 
not going to be able to match the Soviets in the 
field of conventional troops and conventional ar- 
mament. And we are trying to redress that de- 
ficiency by the use of the atomic bomb. Ob- 
viously, if we cannot redress that, it changes the 
picture very materially and very adversely. 

Now a variant — although the Soviets have not 
actually advanced this, but many of tlieir follow- 
ers have — a variant of that is this, and this makes 



an appeal, "Well, let's ban the atomic bomb ex- 
cept in retaliation." Now, let's just examine that 
for a second, and let's use the case of Dien-Bien- 
Phu as an illustration. 

At Dien-Bien-Phu, the Communists put 42,000 
against 12,000. Normally 42,000 are going to beat 
12,000, and they did in that case. If you agree to 
use the atomic bomb only in retaliation, that would 
mean that the side with the 12,000 could not use 
it to redress this imbalance. The side with the 
42,000 might never care to use it. If they could 
win without it, why should they allow themselves 
to be subjected to a retaliatory measure? So we 
say — we, who are charged with a certain element 
of planning for the defense of Europe — that it 
would be to the disadvantage of the United States 
and the other nations in Nato to agree to this 
proposal of the Soviets. 

Now that does not mean that we do not agree to 
disarmament. If there is a safe and secure dis- 
armament plan across the board which will make 
war impossible, we are for that. But simply be- 
cause atomic bombs do create casualties — and very 
heavy casualties against women and children — is 
no reason why we should become sentimental over 
this question as to what weapons must be used. 
The chore is to make war itself impossible. How- 
ever, the Soviets are very clever on this, and in an 
area which is very, very close to Soviet bombers 
you can well understand the appeal that the cam- 
paign is going to have. It isn't dangerous yet, and 
I say that most of the people on the Continent are 
not thinking about it very much. But sooner or 
later they will, and sooner or later we are going to 
have a real problem on our hands in the counter- 
propaganda field. That brings me to my next 
point and that is this question of ideas. 

The Cold War 

You gentlemen represent here a portion of 
American industry, you and your predecessors, 
wlio have made a tremendous contribution in 
making America great. You were not worried — 
or 3'our predecessors, the pioneers — about obsta- 
cles, and you've made our country the strongest 
and wealthiest country in the world. That's 
created a type of psychology that the Americans 
can do anj'thing. And in the field of production, 
in tlie field in which you gentlemen are doing so 
well, that is true. 

But it does not follow that just because we can 



564 



Department of State Bulletin 



get more bulklozors on a job and overcome all 
difficulty, we are going to win the other struggle — 
the struggle which is being waged very vigorously 
now and is commonly known as the cold-war 
struggle — the battle for men's minds, if you will. 
And we are up against some very fine experts in 
that field. 

You gentlemen have made your success, in large 
measure, not only by overcoming those obstacles 
but by selling your products. And in that you 
have appealed to the mind. Cei'tainly the talents 
which you have put to use in advertising your 
products could be put to use in woi-king in this 
field, which, if anything, is even more important 
than the military field. And make no mistake 
about it, the Soviets are very, very clever in that 
field, and they are beginning to do well, especially 
since Comrade Stalin passed out of the picture. 
They have a field which they are able to exploit 
because the conditions, the social conditions, which 
were so damaged during the war — and again take 
France as an illustration, with its badly damaged 
railroads and housing — and the social improve- 
ment which would noi'mally come to a country- 
have been delayed as a result of rearmament. 
"\Miat is more logical than that the workmen, who 
have had those benefits delayed, should show a 
certain amount of resentment over continuing to 
pay high taxes? 

Just the day before yesterdaj^ — no, it was 2 days 
before that — I met a painter, and that painter was 
getting 28,000 francs a month. Twenty-eight 
thousand francs a month is $80. He has to leave 
his house at seven-thirty in the morning, and he 
gets home at seven o'clock at night, and, somehow, 
he seems to work on Saturdays. I'm not sure 
about that, but he's always away on Saturday. He 
has one child, he gets a little social security for 
that, but his total pay is $110. Now, if he should 
buy a ton of hard coal in France, which I assure 
you he never does, it costs him $54. A pound of 
butter costs him about 90 cents. Bread is cheaper, 
rent is cheaper, a few things are cheaper than 
they are here. But he lives a very tough existence. 
He doesn't happen to be a Communist, this par- 
ticular one, but 5 million like him are Communist 
in France. Not that they know the slightest idea 
about Marxism; not that they care. They are 
talking about a social system, and the Communists 
have been able to capitalize on that. But that is 
the kind of audience that requires the kind of 



leadership that we are going to have to exert in 
order to overcome that situation. 

Now in this country — and I see a great many 
Americans — nniny of you here have been to our 
headquarters — I know there is a growing impa- 
tience about Europe and particularly about 
France. And you have reasons to be exasperated, 
I am sure. But will you please bear in mind, as 
you become exasperated, that the one fellow who 
is getting the advantage of that is Mr. Malenkov, 
and he is sitting back chuckling all the time, be- 
cause he hasn't even been smart enough to devise 
some of these divisive influences. So, if we must 
be tough with our allies, I hope we can do it in 
sorrow rather than in anger. Because the most 
important thing in this alliance — and the thing 
which has been accepted by all of the 14 member 
nations of 400 million people — is that we are not 
going to w'in this struggle unless we do it together 
and in common. Make no mistake about that. 

From time to time there are advocates of the 
"fortress America" theory. But just for the sake 
of argument let us assume that you could prove 
mathematically that you could win a war on the 
"fortress America" concept — and I say "for the 
sake of argument" because I don't admit it. But 
I don't want to go into that. You don't win the 
cold-war struggle by it, and that may be the one 
that we're going to have with us for a generation 
or two generations. If we lose that, then we have 
lost everything. 

So, as we consider these elements of military 
strength, my plea to you is to consider the spiritual 
side of it. The leadership of the United States is 
of paramount importance in this struggle. You 
hear, from time to time, that there is anti-Ameri- 
canism in Europe. There is — not as much as you 
hear. There would be a great fear if it were ever 
indicated that the Americans were going to pull 
out of Europe. 

We hear from time to time from people who say, 
"Well, let's work out a separate arrangement with 
the Germans. You have said that the Germans 
are important and necessary for the defense of 
Europe." That is true. The other part, which 
we didn't say, because it's based on the North 
Atlantic Treaty, is that we also need France. So 
the story is we must have both Germany and 
France to defend Europe. 

Now I recognize that this does not give you any 
prescription as to what you're to do, and I can 



October 78, 1954 



565 



only hide behind the wisecrack which "Will Rogers 
made some years ago when he was talking about 
the submarine problem. He said, "The submarine 
problem is a simple one to solve. All you have to 
do is bring the ocean to a boil, and, when the sub- 
marine comes to the top, knock it off." Well, 
somebody said, "Will, how do you get the ocean to 
a boil?" "Well," he said, "I'm only defining the 
general principle, the details are up to you." 

And I'm leaving the details to you gentlemen 
because it's a field that is primarily in the civilian 
field and not in the military field. 

To be just a little more si^ecific, however, than 
Will was, I would say this : Certainly respect and 
support of the leaders who are working in this 
field is one of the paramount contributions you 
can make, plus recognition that the job that they 
are doing is a very difficult one and one for which 
there probably is no answer. Many of these prob- 
lems are still going to be with us many years from 
now. 

In the last 7 years I have had occasion to work 
with three Secretaries of State : General Marshall, 
Mr. Acheson, Mr. Dulles. I think they have all 
been men of great quality, and I admire each and 
every one of them. I would say that Mr. Dulles 
has the toughest job and he needs every bit of 
support that you can give him now. It is not a 
matter of political affiliation — he's up against a 
very difficult situation. 

Need for an Informed Public 

Secondly, I feel that in our public opinion and 
in our know-how — which is a thing that you gen- 
tlemen know in the industrial field — in the know- 
how in this ideological field, we have to increase 
our fund of knowledge very materially. By reason 
of our power position the mantle of leadership has 
fallen on our shouldere, but we are ill-equipped to 
execute it; and we must change that situation. 

Now what do I mean by that ? Well, your own 
children — how much are they studying the sub- 
ject, how much do they know of Europe, and how 
much are they working on it in their college 
courses? How many of your sons and daughters 
are trying to get into the Foreign Service, a field 
of tremendous importance for the future of the 
United States ? The Foreign Service has recently 



been reorganized to make the opportunities more 
attractive, and I'm not here recruiting for them, 
but I've seen them in operation and the job they 
do is of tremendous importance. But above all, 
I'm making my plea for an understanding and a 
realization that these problems cannot be solved in 
simple ways. 

As for the future, I have confidence that we're 
going to succeed. I am not one who believes that 
the Soviets have no weaknesses. There is a tend- 
ency to feel that every Soviet is six feet tall ; but 
that isn't true. There are some dumb ones just 
like we have them. 

But to consider some of their internal weak- 
nesses I need only point to one. Mr. Khrushchev 
pointed out, a year ago, that in the year 1953 the 
Soviet Union had in Russia 9 million less head of 
cattle than it had in 1928. In 1928 its population 
was 152 million; now its population is perhaps 
210 million. In the production field you know the 
story — it takes a Soviet citizen about 3 months' 
work to buy a suit of clothes, a suit that would 
ordinarily cost here about $80. 

Those are internal problems which are going to 
give Mr. Malenkov many a headache, and that 
particular one, the last one, will give him a first- 
class headache — and let us pray that it will be a 
real good one ! He has promised that he is going 
to change that, but he's got 210 million kibitzers 
who are going to know whether he changes it, 
though they may not know whether his figures on 
steel are correct. 

So I feel that the progress we have made has 
been significant and that we have no reason to 
cringe in fear before this monolithic dictatorship. 
It is notliing that we can underestimate, but, on 
the other hand, there's no reason why we should 
feel that the problem is impossible. 

Nato is your organization. It will continue 
to thrive if it has the active participation of the 
people of the United States; and a group such as 
you will realize that our problems can only b© 
solved by the application of wisdom and patience 
and perseverance — frequently in the light of most 
irritating conditions. 

As for the cold war itself, I'm sure we can handle 
that with clear poise and steady purpose if we 
remain dedicated to the unity of our cause. For 
free men there is no other way for survival. 



566 



Department of State Bulletin 



European Command Reports on Offshore Procurement Program 



STATEMENT BY GEN. ORVAL R. COOK ' 

1 am <:lad to welcome you jj;eiitlemen to tlie 
Headquarters of the United States European 
Command liere at Camp des Loges [near St. Ger- 
main, on the outskirts of Paris]. It is the first 
opportunity I liave had to meet with the press 
since we moved here from our Frankfurt liead- 
quarters in May. 

This Headquartei-s— US EUCOM, to use its 
abbreviation — is headed by General Gruenther, 
whom most of you know. His position of Com- 
mander in Chief, US EUCOM, is in addition to 
his international responsibilities as Supreme 
Allied Commander, Europe. In discharging his 
U.S. European Command responsibilities, Gen- 
eral Gruenther has delegated to me, as Deputy 
Commander in Chief, US EUCOM, broad author- 
ity- 

The primary reason for inviting you here today 
is that there is one program in particular under 
our jurisdiction which I thought you might be 
interested in at this time — the U.S. offshore pro- 
curement program. I believe this subject is news- 
worthy now because we have just computed the 
total of contracts placed by the Army, Navy, and 
Air Force this past fiscal year throughout the 
European and N.\to areas. We are thus able to 
give you specific information on the program for 
the year ended June 30 and, in the light of these 
new figures, to make some observations on what 
tlie whole Osp program is accomplishing. 

For those of you not familiar with the term 
"offshore procurement program," let me explain 
brieflv what it is. 



' Made at a press conference at the Headquarters of 
the U.S. European Command on Oct. 4. General Cook 
is Deputy Commander in Chief, U.S. European Command. 



Since 1046 our allies have made great strides 
in economic recovery and in building up their 
own defense capabilities. The United States, 
through the Mutual Security Program, has pro- 
vided assistance to these countries by furnishing 
equipment for their military forces which was 
beyond their own capacities to provide. This 
U.S. military assistance programed for the Euro- 
pean Nato countries since 1949 has amounted to 
some 12 billions of dollars, more than half of which 
has been delivered. The program has effectively 
supplemented the substantial efforts which these 
countries themselves have been making. 

U.S. assistance is provided in two ways — first, 
in the form of defense items manufactured for 
the Mutual Security Program in the IT^nited States 
and shijjped here; and second, in the form of U.S.- 
type equipment and supplies which we procure 
here in Europe and transfer to the several coun- 
tries for their defense force. To instruct the re- 
cipients of this military equipment in its use, main- 
tenance, and repair, the defense assistance pro- 
gram is augmented by an extensive training pro- 
gram conducted by the United States Aimed 
Forces both here and at home. 

We also buy supplies and services throughout 
Western Europe for the U.S. troops stationed here 
in Europe. The supplies are principally food- 
stuffs, but the services are diversified and include 
many items such as repaire to and parts for U.S. 
combat vehicles. 

The buying of military equijiment and goods 
and services in the European N.\to area we call 
"offshore procurement." The name obviously 
comes from the fact that it describes purchases 
made beyond the shores of the United States. 

The subordinate commands and agencies of this 
Headquarters placed offshore procurement con- 



Ocfober 18, J 954 



567 



tracts with the industrial establishment of West- 
ern Europe totaling more than 612 millions of 
dollars in the past fiscal year. Approximately 
two-thirds of this amount was for weapons and 
other military supplies needed by our allies for 
their defense forces. The other third — some 200 
millions — was for supplies and services needed 
for our own U.S. troops stationed in Europe. 

All of the military equipment portion of the 
program, as in the previous years' programs, will 
be turned over to our defense partners to assist in 
the buildup of their armed forces. This U.S. 
assistance to our European allies is providing a 
vastly increased measure of security to all of the 
free nations of the world by increasing the capa- 
bilities of our partners to defend our common 
freedoms — ours as well as their own. 

The 612 millions of dollars' worth of orders 
placed in the fiscal year 1954 are in addition, of 
course, to the $2,660,000,000 in orders similarly 
lolaced during the preceding 2 years, from which 
a steady flow of deliveries is now being received. 

Thus, in the past 3 years under the mutual de- 
fense program, we have contracted with "Western 
Eui-opean industry and suppliers for more than 
three and one-quarter billions of dollars' worth 
of supplies and equipment — two and one-half 
billions in defense equipment to strengthen the 
armed forces of our allies, and three-quarters of 
a billion in supplies for our own troops, the latter 
including substantial quantities of foodstuffs for 
our forces. 

Industries in all the Nato countries and several 
of the non-NATO countries share in these orders 
in such manner as to spread their benetits into 
every part of the countries' economic and defense 
structure. The procurement of agricultural prod- 
ucts results in favorable effects on that segment of 
the European economy. Industries receiving con- 
tracts bring literally thousands of other factories 
and suppliers into the work under subcontracts so 
that vast numbers of skilled workmen are em- 
ployed in the manufacturing processes. 

And as all of these factories and workmen be- 
come skilled in the manufacture of specialized de- 
fense items, the defen.se-production capacity of our 
partners in the Western alliance is greatly ex- 
panded — one of the precise purposes of the Ameri- 
can Congress in bringing tliis program into being. 

There is no doubt that these economic and de- 
fense benefits are being realized. The steadily in- 



creasing flow of deliveries under the contracts 
placed during the past 3 years provides convincing 
proof of it. 

Of the two and one-half billion dollars of orders 
we have placed for ammunition, aircraft, ships, 
electronic equipment, combat vehicles, and other 
defense materials for our allies since July 1, 1951, 
we have received delivery on about 617 million 
dollars' wortli — about one-fourth of what we have 
ordered. We have paid out some 672 millions of 
dollars — that is, paid outright for everything that 
has been delivered and in addition have made some 
progress payments on certain expensive units such 
as ships, which a contractor himself camiot be 
expected to finance alone. 

This leaves about $1,880,000,000 worth of mili- 
tary items still to be delivered and paid for. 
These deliveries and payments, under orders al- 
ready placed, will be continuing for the next 2 
years — and more in some cases. 

Right now, our dollar payments for these mili- 
tary-equipment items are running at the rate of 
about 60 millions of dollars per month. Add to 
this the 21 millions we are spending each month 
for supplies for our own troops, and we find that 
the total dollar payments under this program in 
all our allied countries of Western Europe are 
running at the rate of 81 millions of dollars per 
month. For your convenience, I have had all of 
these figures prepared on a country-by-country 
basis. This summary will be available to you 
when we conclude here. 

I am convinced that our offshore procurement 
program is achieving the purposes for which it 
was intended. 

First, it is supplying essential items for the time- 
phased defense programs of our allied countries. 

Second, it is strengthening the European de- 
fense-production facilities and resources with the 
result of broadening Western Europe's industrial 
mobilization base — so important to us all. 

Third, it is pi'oviding dollar exchange to Eu- 
rope with resultant strengthening of the economies 
of our allies which is so necessary to the buildup 
and continuation of their own defense strength. 

And finally, it is assuring our allies that the 
United States, as one of the partners in the great 
European defense alliance, is working vigorously 
to further tlio military, economic, and political 
objectives of the North Atlantic Treaty Organiza- 
tion. 



568 



Department of State Bulletin 



STATISTICAL REPORT' 

OlFsliore procuiviiR-iit contnicts totiilinj^ $()1'2,- 
050,000 were awarded in the fisciil year emling 
June 30, lOSl. by the subordinate connnands and 
agencies of the United States European Connnand. 

Of this total, $394,950,000 was in tlie form of 
439 contracts for military supplies and equipment 
under the Mutual Defense Assistance I'rogram 
and $217,100,000 was in orders for supplies, serv- 
ices, and equipment in support of U.S. troops and 
installations in Europe. 

Of the overall total, the U.S. Army, Europe, 
headquarters at Heidelberg, Germany, placed or- 
ders for $-298,060,000; the U.S. Air P^orces in 
Europe, through its Wiesbaden headquarters, 
placed orders for $187,100,000; the U.S. Naval 
Forces. Eastern Atlantic and Mediterranean, with 



'Released at the Headquarters of the U.S. European 
Command on Oct. 4. 



headcpiarters at London, placed oiders for $63,- 
58(),()()i); and tiie Joint Construction Agency, 
thiougii its Paris lieadquarters, placed contracts 
valued at $(;3,310,000. 

Major items of purchase and their approximate 
values were: 

Ships and equipment .$20, .'HiO, 000 

Ammunition 147, 000, fKX) 

.\lrcraft and equipment lo:?, 000, 000 

Construetion tiS, (tOO, <X)0 

Suhslstence 4:{, 000, 000 

Tanks and antoniotivc 37, 760, 000 

Klectrouic, coiniiuinications equipment 3.5,050,000 

Maintenance and repair 30,720,000 

Weapons (arms-artillery) 21,650,000 

HuildinK supplies 7,040,000 

Fuels and lubricants 4,510,000 

Miscellaneous and actions under $10,000- <50, 800, 000 

The contracts and orders were placed in all of 
the 11 European Nato countries and in 7 non-NATo 
countries. 



Country 



Total Contracts 

Awarded (Mdap and 

Troop Support) 



Deliveries 
(Mdap) 



Payments Made 
(Mdap) 



Total U.S. Troop 

Support Orders 

Placed 



Approximate 

Current Monthly 

Rate Payments 

(Mdap and 
Troop Support) 



Xato 

Belgium 

Denmark 

France 

Greece.. 

Italy... 

Luxembourg 

Netherlands. 

Norway 

Portugal.. 

Turkey 

United Kingdom. 

Total 

Nod-Nato 

Germany,. 

Spain 

Switzerland 

Yugoslavia.. 

.\ustria 

North Africa 

Sweden. 

Others. 

Total 

Total Nato and Nou-Nato 



$190, 910, 000 

52, 670, 000 

1, 335, 630, 000 

35, 000, 000 

490, 400, 000 

1, 240, 000 

121, 890, 000 

27, 960, 000 

21, 890, 000 

9, 360, 000 

749, 570, 000 



$13, 410, 000 

110,000 

357, 420, 000 

4, 740, 000 

98, 910,000 

370, 000 

10, 130, 000 

4, 780, 000 

None 

None 

117,300,000 



$13, 400, 000 

2, 340, 000 

389, 800, 000 

4, 740, 000 

115,310,000 

370, 000 

15, 810, 000 

4, 780, 000 

460, 000 

None 

117,990,000 



$48, 150, 000 

36, 020, 000 

295, 140, 000 

None 

34, 750, 000 

480, 000 

42, 820, 000 

530, 000 

3, 620, 000 

None 

114,350,000 



$2, 337, 000 

1, 400, 000 

42,019, 000 

1,000,000 

8, 965, 000 

33, 000 

3, 189,000 

1, 614,000 

300, 000 

500, 000 

15. 176, 000 



$3, 036, 520, 000 



$607, 170, 000 



$665, 000, 000 



$575, 860, 000 



$76, 533, 000 



$75, 910, 000 
13,570,000 
88, 930, 000 

15, 810, 000 

16, 990, 000 
13, 350, 000 

4, 270, 000 
7, 160, 000 



$6, 070, 000 
None 
3, 920, 000 
320, 000 
None 
None 
None 
None 



$6, 680, 000 

None 
860, 000 
320, 000 

None 

None 

None 

None 



$56, 810, 000 

200, 000 

45, 070, 000 

320, 000 

16, 990, 000 

13,350,000 

4. 270, 000 

None 



$2, 978, 000 
305, 000 
4,251,000 
590, 000 
471,000 
471,000 
118,611 
None 



$235, 990, 000 



$3, 272, 510, 000 



$10,310,000 



$7, 860, 000 



$137, 010, 000 



$9, 084, 000 



$617, 480, 000 



$672, 860, 000 



$712, 870, 000 



$85, 617, 000 



Ocfober 18, 1954 

318232—54 3 



569 



The orders for the $394,950,000 in military 
equipment under ]VIdap were placed in the several 
countries as follows : 

(In millions of dollars) 
NATO countries Total (MDAP onli/) 

Belgium 37. 67 

Denmark 1- ^'* 

France 22. 34 

Greece 1- ^ 

Italy 93. 18 

Netherlands 2. 54 

Norway ■*• ^^ 

United Kingdom 192.58 

Turkey • ^"^ 

Luxembourg • -^ 

Total 356. 74 

Non-NATO countries Total (MDAP only) 

Gei-many "^^ '^^ 

Spain 10. 64 

Yugoslavia 13.76 

Switzerland 6. 05 

Total 38. 21 

Grand total: Nato and non-NATo 394.95 

The fiscal year 1954 contract total of $612,050,- 
000 brings the total of contracts let under offshore 
procurement since the beginning of the program in 
fiscal 1952 to $3,272,590,000. Of this total, 
$2,552,780,000 was for military supplies and equip- 
ment for our partners and allies under IIdap and 
$719,810,000 was for supplies, equipment, and serv- 
ices in support of U.S. military forces in Europe. 

In the Mdap portion of the program, the U.S. 
has received deliveiy on $617,480,000 of the total 
of $2,552,780,000 in orders placed and has actually 
disbursed $672,860,000 in payment for these items 
and advances to contractors on goods yet to be 
delivered. 

These payments for Mdap items and for goods 
and services for U.S. troop support are currently 
running at the rate of approximately $85,000,000 
per month. 

The accompanying- talile ' gives the total con- 
tracts awarded (Muap and U.S. troop support) by 
countries for the 3 fiscal years 1952-53-54, totals 
of deliveries and payments for the period, total 
U.S. troop-support orders placed, and the current 
appro.xiniate rate of monthly payments by the 
United States on deliveries, by countries. 



Secretary Dulles Reconvenes 
Public Committee on Personnel 

Press release 551 dated October 4 

The Department of State announced on October 
4 that Secretary Dulles had asked the Public 
Committee on Persoimel to reconvene on Octo- 
ber 11. 

The purpose of the meeting is to consult with 
the Secretary on the Department's progress in 
carrying out recommendations for strengthening 
the Foreign Service made by the Committee last 
May. The Secretary announced his action on these 
recommendations on Jime 15.^ 

Mr. Dulles is taking the imusual st«p of recon- 
vening the Committee in order that he may receive 
from its members an evaluation of the actions taken 
by the Department to date, and also to obtain the 
benefit of their views about the administrative 
measures already taken or still necessary to take 
in launcliing the program. 

The Connnittee was established March 5 by the 
Secretary to study and advise him on measures 
necessary to increase the effectiveness of the career 
service to meet the vastly increasing responsibili- 
ties in the field of foreign policy which have de- 
volved upon the President and the Secretary. 

Its members are : 

Norman Armour, former Assistant Secretary of State, 
former United States Ambassador to several coun- 
tries, and recently appointed Ambassador to Guate- 
mala ; 

John A. McCone, president, the .losliuu Hi'nd.x CVirpora- 
tion, Los Angeles; 

Robert JIurpb.v, lieputy Under Secretary of State ; 

Morehead Patterson, chairman and president, American 
Machine and Foundry Company, New York, 1954 
Chairman of the U.S. Committee for U.N. Day, and 
recently U.S. Deputy Representative to the U.N. Dis- 
armament Commission ; 

Donald Uussell. president of the University of South Caro- 
lina and t'diiuer .\ssistant Secretary of State; 

Charles E. Saltzmau. general iiartner. Henry Sears and 
Company. New York, on temporary leave of absence 
while serving as Under Secretary of State for Ad- 
ministration ; 

.John Hay Whitney, senior piulner in .1. II. Whitney and 
Company, New York ; J 

Dr. Henry M. Wiiston, president of Brown University. ' 

Dr. Wriston serves as Chairman of the Com- 
mittee. The \'ice Chairman is Mr. Whitney. 
Tlie plan wliich they presented to the Secretary 



" See iirecedinu page. 

570 



■ Bulletin of June 28, 1954, p. 1002. 

Department of State Bulletin 



embodied an immediate program for strengthen- 
;nfi the professional servii-e, as well as a lonp;-ninpe 
method of maintaining a high-caliber Foreign 
Service. Key i-econmiendations were: 

1. Integration of the officers of the Depart- 
mental home service and the Foreign Service per- 
forming similar foreign atl'aii-s duties. 

2. The bold and imaginative recruitment and 
scholarship program wlierehy the Foreign Service 
would obtain a constant and adequate flow of quali- 
fied young men and women representing the best 
cross section of American life. 

3. Provision for continuity and vigor in the 
administrative leadei-ship of the Department, 
thereby to assure the consistency and stability of 



personnel policy vital to effective administration. 

'Hie majority of the ConMiiitfce's recommenda- 
tions are being put into ellVct under the authority 
of the Foreign Service Act of 1946. Some aspects 
of the program refpiire additional legislation, a 
portion of which was re(iuested from and granted 
by the Sod Congress. 

A complete review of the various steps which 
have been taken in this integration and recruit- 
ment program will be given to the Committee by 
the Secretary. 

Mr. Saltzman, who served on the Committee, was 
made Under Secret^iry of State for Administra- 
tion in June. Tie has a special responsibility to 
implement the reconmiendations of the report. 



Problems in the Far East 



bi/ Everett F. Dmmnght 

De-puty Assistant Secretly for Far Eastern Affairs ' 



Sine* the days 400 years ago when contacts were 
first established between the West and the East on 
a more or less regular basis, the East has been an 
area of weakness — of weakness, that is, relative 
to the West. It had lagged Ijehind the West in 
invention and in material development, especially 
in weapons and the art of war. Its systems of 
government were backward by European stand- 
ards. In modern terms, we should speak of the 
East of several centuries ago as compounded in 
part of stagnation and in part of disorder. We 
should say that it constituted a huge power vac- 
uum. To point this out reflects no discredit upon 
the Asian peoples. All peoples have their ups 
and downs. In the past, in the dark ages, Europe 
had lieen weak; Asians had poured into Europe 
from the East, Arabs into Europe from the South. 

Sooner or later, power vacuums — like climatic 
low-pressure areas — become filled from the out- 
side. Following the arrival of the first Europeans 

' Made before the Board of Directors of the National 
Chamber of Commerce. Wai^hin;rton, D.C.. on Sept. 17. 

Ocfober 18, 1954 



in the East, the history of the East has been, until 
comparatively recent yeai-s, largely a history of 
the assertion of power in the East by outsiders — 
Portuguese, Spanish, Dutch, French, British, Rus- 
sians, and Americans. 

If the West took a great deal out of Asia, the 
West also brought a great deal to Asia. Among 
other things it brought the Asians a picture of a 
more rewarding material life than they had ever 
dreamed of — the life that the West had achieved 
for itself through scientific and industrial prog- 
ress. It also brought ideas— ideas about justice 
and human worth and the idea of nationalism. 
The West aroused in the East a determination to 
achieve some things that the West had achieved. 
Western ascendancy in the East made it inevitable 
tliat Western ascendancy would come to an end. 

The United States has with consistency given 
sympathy and tangible assistance to the Asians in 
their desire to be free of foreign controls and to 
achieve a more rewarding life. For one thing, we 
have not forgotten our own colonial backgroimd 

571 



and our successful fight for indeijendence. For 
another, we are believers in progress, in man's 
ability to achieve mastery of his physical environ- 
ment. Thirdly, we have not wished to see the 
Asian countries closed to our missionaries and our 
traders. Finally, we have recognized fi'om the 
very beginning of our intercourse with the East 
that the incorporation of Asia under a hostile im- 
perialism would threaten our security in the 
Pacific. 

It is fair to say that opposition to imperialism 
has been the foundation stone of our policies in 
Asia. It is true that we supplanted Spanish rule 
in the Philippines with American rule, but we em- 
ployed our privileged position in the islands to 
prepare the Filipinos for self-government, which 
we gave them in 1946. Half a century ago we 
acted to prevent the carving-up of China by the 
great powers with our enunciation of Hay's "Open 
Door" policy. Thirteen years ago we found our- 
selves involved in a life-and-death struggle in the 
Pacific because we would not acquiesce in the dis- 
memberment of China. That time, the imperi- 
alist power was an Asian power — Japan — which 
had mastered the technology of the West and was 
determined to use it to supplant Western hegem- 
ony in Asia with its own rale. We defeated 
Japanese imperialism but not before two things 
had happened that made the restoration of Euro- 
pean rule in the former Asian colonies a thankless 
proposition. First, Asia had been fired by the 
spectacle of the defeat of Western armies by other 
Asians. Second, Japanese arms by the hundreds 
of thousands fell into the hands of the insurrec- 
tionists. And, it should be pointed out, the West- 
ern powers no longer had much desire to maintain 
rule by force over embittered and resentful Asian 
populations. 

Rise of Communist Imperialism 

The achievement of freedom by nine Asian 
countries in the postwar years has been one of the 
great historical phenomena of our lifetime. Un- 
fortunately, it has been accompanied by another 
phenomenon scarcely less significant with wliich 
Asian independence is clearly irreconcilable. 
This has been the emergence of a new imperialism 
in Asia. Again, as in the case of the Japanese 
empire, the weapons of this new imperialism have 
come from the West and been adopted by an Asian 
power clique. The literal weapons have come 



from arsenals in European Russia. The origin 
of the ideological weapons may be pinpointed to 
a bearded habitue of the reading rooms of the 
British Musemn of 100 years ago — Karl Marx. 
Wliat happened in Russia nearly 40 years ago has 
within the last few years happened in China — 
Communists have taken over the country. A cen- 
tralized and ruthless dictatorship has been im- 
posed upon the Chinese people. The other peoples 
of Asia have been confronted by tlie menace of a 
new imperialism as aggressive as any in the past, 
and far harsher and more unequivocally totali- 
tarian than any they have ever known. It is an 
imperialism which is not only strong in its own 
right by virtue of its ironclad control of more than 
400 million Chinese but is dedicated to inter- 
national communism and thus united with the 
power of the sprawling Soviet state. 

Wliat makes the menace of Conmiunist China, 
like the menace of Soviet Russia, particularly dif- 
ficult to deal with is the manifold nature of the 
threat it presents. On the one hand Commmiist 
China and the Soviet Union have the most nu- 
merous armed forces in the world with which they 
can intimidate their neighbors and with which 
they could unquestionably overrun considerable 
territories before counteraction could be effective. 
On the other hand, the Communists have acquired 
considerable proficiency in gaining their ends by 
political methods. These methods consist of mak- 
ing common cause in non-Communist countries 
with important protest groups for the purpose of 
channelizing beliind the Comnnmist Pai'ty the 
various elements of discontent with, and rebellion 
against, the existing order. This is known as the 
strategy of the united front. 

As between wimiing other peoples by force and 
winning them by getting on their good side, there 
is obviously some contradiction. It is difficult to 
employ both methods at once with great effect. 
In actual practice, the Coimnunists are inclined 
to alternate their methods, shifting from one to 
the other according to the situation and require- 
ments of the moment. The immediate postwar 
years were, in the Far East at least, years of the 
united front. The Communists tried to identify 
themselves with tlie most popular causes and move- 
ments in Asia. But then in 1948 the decision was 
handed down by the international Communist 
leadership to resort to force against the weaker 
non-Connnunist regimes in the Far East. Warfare 
was launched against the governments and anti- 



572 



Department of State Bulletin 



Communist elements of the Pliilippines, Burma, 
Maluya, anil about a year later, against the Re- 
public of Indonesia. The most daring and cyni- 
cal employment of foree by the Coinminiists came 
in June 1950 with the overt attack on the Kepublic 
of Korea. 

The shift in crand strategy, of which I have 
spoken, did not apply to China and Indochina. 
There, the Communists seemed to have con- 
cluded — not without reason — that they had hit 
upon a winning formula which did not need to be 
changed, a combination of political and military 
methods that promised to pay oflF. 

In China, the disastrous weakening of the con- 
trol exercised by the National Government and 
the general impoverishment and despair, basically 
resulting from the war with Japan, conspired 
powerfully to the advantage of the Communists. 
In Indochina, it was the effort of the French to 
re-impose their rule by force that gave the Com- 
munists their opportunity. Achieving a strong 
political position by seeming to offer a sorely tried 
people those things which they most desired — 
peace and stability in one case, relief from foreign 
rule in the other — the Chinese Communists and 
Vietnamese Communists were able to amass de- 
cisive military forces on their side. 

Return to Strategy of United Front 

The truce in Korea and the truce in Viet-Nam 
appear to have signalized another broad change 
in Communist strategy, the second since World 
War II. We now appear to be returning to the 
strategy' of the united front, in which militarA' 
action will be played down and the Communists 
will seek to pose as the righteous champions of 
long-suffering peoples everj-where. This does not 
mean that we can afford to let down our guard 
in anticipation of a period of peace. The Com- 
munists are always capable of quickly reversing 
their strategy when they perceive that it is to 
their advantage to do so. At present, however, 
the Communists appear to be planning their major 
efforts in the political fields in the Far East with 
the primary objective of creating disunity among 
their adversaries, particularly by arousing fear, 
suspicion, and resentment of the United States, 
and by playing upon local grievances to achieve 
this objective. Accordingly, this is what we shall 
have to expect in the foreseeable future : 

1. In Japan, the Communists will attempt to 
take advantage of the frictions always resulting 



from the presence of foreign troops to create and 
intensify anti-American feelings. They will ex- 
ploit Japanese fears of being caught in the atomic 
crossfire of another world war in order to neutral- 
ize Japan. They will seek to dominate Japanese 
labor, utilizing techniques found effective in other 
industrial countries. They will wait for Japan's 
tM:onomic position to worsen, as it surely will un- 
less wider markets are found for Japanese exports, 
and if their hopes for Japan's economic collapse 
prove justified, the Communists will use the situ- 
ation to discredit the moderate democratic ele- 
ments and to promote Japanese trade with 
mainland China as a means of obtaining Japan's 
economic tie-in with the Moscow-Peiping bloc. 



Department Publishes Documents 
on Korean Problem 

The Department of State this month released a 
193-page publication entitled The Korean Problem 
at the Genera Conference, April 26-June 15, 1954, 
containing a brief narrative account of the Korean 
phase of the Geneva Conference and texts of the 
principal statements and proposals made by repre- 
sentatives at the Conference. The major U.N. 
resolutions relating to Korea also are included. 
Copies are for sale by the Superintendent of 
Documents, U.S. Government Printing Office, 
Washington 25, D. C. (60 cents). 



2. In Korea, the Communists would seem to 
have eliminated any possibility of posing as 
friends of the Korean people or of being accepted 
as champions of any popular Korean causes. We 
must not be too sure of this, however. Wlien a 
country has suffered such devastation as that which 
was brought upon Korea, opportunities for sub- 
version and for proselytizing extremist doctrines 
are enhanced. Moreover, we must not forget that 
the Communists have the power to give the Ko- 
reans, for a price, what they most desire : unifica- 
tion. We must also not forget that President Rhee 
virtually is the government of the Republic of 
Korea. Whether any of his possible successors 
would have suflicient national stature and support 
to be able to hold the country together, under cir- 
cumstances of adversity, we cannot know. 

3. In Viet-Nam the danger, of course, stares us 
in the face. The Viet Minh — the Communist 
regime administering north Viet-Nam under the 
Geneva settlement — has an organization tempered 
in the fires of 8 years of war. It has a record of 
fanatical opposition to French domination. For 



Ocfober ?8, J 954 



573 



years it was synonymous with national independ- 
ence in the eyes of large numbers, if not the ma- 
jority of Vietnamese, south and north. It has its 
indoctrinated partisans throughout south Viet- 
Nam. Both as a Vietnamese political force and a 
Vietnamese military force, it will not be easy for 
anti-Communist Vietnamese to match. 

4. Southeast Asia as a whole offers a varied field 
for Communist enterprise. Each coimtry has its 
vulnerabilities. There are subnationalist or re- 
gionalist movements, as among the Karens in 
Burma and the Atjinese in Indonesia, which have 
led to civil war. There are religious movements 
to cause disorders such as the Moslem Moros in 
the Philippines and the Darul Islam which seeks 
to make a theocratic state of Indonesia. There 
are deficiencies in government services, result- 
ing from lack of experience, that weaken the gov- 
ernment's position and its support and play into 
the hands of profiteers in popular dissatisfactions. 
There is lack of capital for economic development 
that results in economic stagnation and potentially 
dangerous feelings of frustration, particularly 
among the educated classes — always the tinder of 
a revolution. There are the consequences of fall- 
ing prices of Southeast Asia's chief export prod- 
ucts — rubber, tin, rice, vegetable oils. There is 
the legacy of bitterness toward the West which 
makes it difficult for former colonial peoples to 
see Western policy as having any other objective 
than the economic, if not the political, domination 
of their countries and which makes it difficiilt for 
the West effectively to assist the Southeast Asians 
in a solution of their problems. There is the na- 
tural disposition of peoples whose experience with 
capitalism, domestic as well as foreign, has not 
been happy, to look to the doctrines of Marx as 
the answer to their needs. There is the spectacle 
of the Soviet Union which — to hear the Commu- 
nists tell it — rose in a single generation from serf- 
dom and national impotence to a position of 
first-rate power in the world without the help of 
the greedy capitalists who now look upon it with 
as much fear as hatred. There are the Chinese in 
the Southeast Asian countries, totaling over 10 
million, outnumbering the indigenous inhabitants 
of Singapore and Bangkok — Chinese whose self- 
interest and sense of race and culture necessarily to 
some extent tend to turn them toward Peiping as 
the capital of China proper. 

Throughout the Far East — as indeed throughout 



574 



the world — there is the passionate desire for peace 
upon which the Communists can play. Con- 
trolling all means of communication within their 
world, the Communists are able to conduct their 
own military preparations in the dark while seiz- 
ing every opportunity to denounce every defense 
measure on the part of the free nations, and of 
the United States in particular, as an aggressive 
act aimed at the destruction of the workers' para- 
dise by the imperialist war-mongers of Wall 
Street. IManipulating every means of expression 
in their world, the Communists are able to fill their 
press with eulogies of peace while castigating, as 
a demonstration of belligerency and aggressive- 
ness, every just warning of Communist intentions 
by spokesmen for the free nations — Americans in 
particular. 

That, in brief, is the problem we face in the 
Far East^ — that and the enormous mass of infan- 
try on the other side of the iron curtain in China, 
north Viet-Nam, North Korea, and Soviet Si- 
beria, the thousands of planes in the Communist 
air forces in the Far East, the large Soviet sub- 
marine force based on Vladivostok. 

What We Must Do 

Because the subject I was given was our prob- 
lems in the Far East, I have not planned to ex- 
patiate upon our policies. I believe it is clear what 
general line these policies must take. We must 
match the military strength of the Communists, 
not necessarily weapon for weapon, but in total 
effectiveness. By "we" I mean the United States 
and its allies. We must help the Asian states 
develop the military power to cope successfully 
with internal rebellion and to make an aggressor 
deploy a major force in order to invade success- 
fully — thus creating the basis for international ac- 
tion against him. The fii"st-rate military forces 
we have helped develop in the Republic of Korea 
and the Republic of China are examples of what 
can be done. In addition, I would call your atten- 
tion to the newly signed Southeast Asian Collective 
Defense Treaty.^ Tliis treaty, together with the 
security treaties we have entered into with Japan, 
Australia and New Zealand, the Philippines, and 
the Republic of Korea, demonstrates that the 
Communists cannot expect to pick off the free na- 
tions of the Far East singly and with impunity. 



HuiiKTiN (if Sept. 20. 1954, p. ms. 

Department of State Bulletin 



Wi' iiitisl lii^lp tiie Asiiiiis create societies that 
function witii reast)iial)ie clliciciicy ami no ilot oilVf 
tlie Communists a vital lodjtement fi'om wliicli tlie 
whole structure can be subverted. This we ai-e 
doin<j through a great variety of technical aid pro- 
frrams and, in the case of Korea and Formosa, 
thronjih very substantial pro<j;rams of reconstruc- 
tion and development. Perhaps the most impor- 
tant thing we can do to create economic health in 
the Far East is to help remove barriers to trade 
among the Far Eastern countries — i)articularly be- 
tween Japan and Southeast Asia — and between 
the Far Eastern countries and the rest of the free 
world. Above all, markets must be developed for 
greatly increased Japanese exports. Tliis means 
finding a larger market in the United States as 
well as in other countries. 

We must give the Asians every opportunity to 
come to a realistic appreciation of the Commu- 
nist danger and of what the United States stands 
for and what it is trying to achieve. Our i)resent 
widespread information programs and the facili- 
ties we have offered to enable Asian students and 
leadei's to studj^ and travel in our country ai'e 
sizable steps in the right direction, but I am not 
sure that they go far enough. 

We must convince the Asians that we are wholly 
behind them in their desire to achieve and main- 
tain independence. This is not as easy as it sounds 
when our efforts to make sure that the material 
aid we give is effectively utilized and our efforts 
to develop collective resistance to aggression in 
-Vsia are both apt to be interpreted as interference 
in the domestic affairs of Asian countries. It is 
made more difficidt when the exigencies of the cold 
war sometimes seem to put us in the position of 
defending colonialism. Nevertheless, our record 
is a good one and we should be able to build on 
it with confidence. The Pacific Charter,- which 
was signed at Manila at the same time as the col- 
lective defense pact and which pledges the signa- 



tories to u[)h<)l(l the principles of e(|ual rights and 
self-iletcrminat ion of peoples, is a guaranty to 
the Asians of our intentions and of tliose of our 
Fi-ench and Prilish allies. 

We must make the Asians understand that what 
we want in the world is very similar to what they 
want, that in the main their aspirations and oui-s 
are not very different, tluit what we have to offer 
is something that they can respect, and that our 
strength means greater security for them. This is 
something that the American people must accom- 
plish through their agencies of expression — mag- 
azines, books, news]iapers, motion pictures — and 
through their unofficial representatives ovei-seas, 
by whom the United States is more often judged 
than by its official representatives. 

Above all i)erhaps, the Asians must understand 
that the objective of our policy and our power is 
peace. This necessity imposes an obligation upon 
all of us — the obligation to remain strong and 
alert as a nation without indulging in the kind of 
warlike and boastful talk that seems to make it 
easier for a democracy to accept the sacrifices re- 
quired for military preparedness. 

If I have devoted so much more time to our 
problems in the Far East than to what we are 
doing to meet them, it is not because I think our 
problems are greater than our resources for deal- 
ing with them. Quite the contrary. The Com- 
munists have enjoyed only two major successes in 
the Far East: one in China, one in Viet-Nam. In 
both cases their success arose from the conditions 
of a foreign occupation and of a long and genei'ally 
unsuccessful effort on the part of nationalist forces 
to expel the foreigner. For the rest, the Com- 
munists' hopes have been disappointed in one Far 
Eastern country after another. If the Com- 
munists have twice reversed their grand strateg}', 
it is because their grand strategy has not .succeeded 
as they expected. It is well within our power to 
insure that it never will. 



October 18, 1954 



575 



The Concept of Self-Determination in American Tliouglit 



hy Walworth Bariour 

Deputy Assistant Secretary for European Affairs ' 



This gathering, dedicated to a free life for the 
peasant farmers of Eastern Europe, is an appro- 
priate one at which to make a few remarks about 
the principle of freedom, or more particularly of 
self-determination, in the American approach to 
world affairs. 

In the 18th century the American colonists 
began a revolution that continues until this day. 
Its purpose was tlie winning of freedom and na- 
tional independence, and its fruit was the shaping 
of democratic institutions to make that freedom 
and independence a living reality. Like the 
French Revolution, the American Revolution be- 
longed to the great democratic movement which 
has had its local manifestations in the various 
countries of the free world. You will doubtless 
agree that this democratic movement, exalting in- 
dividual rights, human dignity, and national 
independence, is the true revolution of the modern 
age — not the Conununist-proclaimed revolution, 
which looks backward to the concepts of the 
absolute power of the state, the collectivistic organ- 
ization of society, and the maintenance of imperial 
dependencies through the Communist mechanism. 
The democratic revolution will survive, spread, 
and invigorate the nations of the modern world 
long after the deadening dogmas underlying the 
Communist system have passed into limbo. 

"N^Hiatever the virulent attacks of Communist 
propaganda may say to the contrary, the further- 
ance of freedom and self-government has been the 
central motivating influence in American political 
behavior both at home and abroad ever since our 



'Address made before the Fourth Congress of the 
International Peasant Union at New Yorli, N. Y., on Oct. 
;{ (press release 546 dated Oct. 2). 



birth as a nation. In asserting our independence 
we affirmed that govermnent derives its just 
powers from the free consent of the governed. The 
people of the United States established the Con- 
stitution in order, among principal pui'poses, to 
"secure the blessings of liberty to ourselves and 
our posterity.*' Since that time the American 
partiality for this jihrase is evident in its frequent 
utterance in public speeches. It never fails to 
strike a responsive chord in an American audience. 
The American continues to believe that a test of a 
good conunonwealth is whether it makes possible 
such blessings for its citizenry. 

It was natural that this valuation of freedom 
should be strongly held during the early years of 
the Republic, when we were endeavoring to com- 
plete the process of securing independence from 
Europe. As Washington affirmed in his Farewell 
Address, "Interwoven as is the love of liberty with 
every ligament of your hearts, no recommendation 
of mine is necessary to fortify or confirm the at- 
taclunent." Later this country passed through the 
ordeal of a long and bitter civil war in which the 
issues were freedom and self-government as each 
side conceived them. Abraham Lincoln, the Great 
Emancipator, guided the course of this conflict 
in order to preserve a Union based upon govern- 
ment by the people and for the people. 

Participation in World Affairs 

In the 19th century Americans lived much to 
themselves within the limits of this continent. 
When the changing world of the 20th century 
impelled us to a greater concern with distant neigh- 
bors, this devotion to freedom which had so long 
animated the pursuit of our domestic affairs was 



576 



Department of State Bulletin 



carried ovor into the more active American par- 
ticipation in world affaii-s. Tlie new order of 
society envisajied by President "Woodrow "Wilson 
as the "new freedom" extendeil to the international 
sphere as well as to national problems. He was as 
ardent a champion of the fieedom of nations as he 
was of social reform at home. He led the Amer- 
ican nation in a great war "for the rights of na- 
tions great and small and the privilege of men 
everywhere to choose their way of life and obe- 
dience." The world was not only to be made safe 
for democracy by the successful termination of the 
war. The peace that followed was to be "planted 
upon the tested foundations of political liberty." 
The principle of self-determination was funda- 
mental in the Fourteen Points, and in the Hnal 
point of this program for the peace he foresaw an 
association of nations to afford mutual guarantees 
for the political independence of both small and 
great states. 

In disposing of the wreckage of three empires in 
Central and Eastern Europe the peacemakers of 
1919 concluded in his view "a people's treaty, that 
accomplishes bj' a great sweep of political justice, 
a liberation of men who never could have liberated 
themselves, and the jwwer of the most powerful 
nations has been devoted not to their aggrandize- 
ment but to the liberation of people." He con- 
ceived of article 10, pledging a member of the 
League of Nations to respect and preserve the 
territorial integrity and political independence of 
every other member against external aggression, as 
the heart of the League Covenant. This provision 
was for him a recognition of the saci'edness of the 
principle of self-determination. 

The central theme of freedom in the ^Vmerican 
approach to the world was reiterated by President 
Roosevelt in the Four Freedoms speech of 1941. It 
may be recalled that in this speech devoted to for- 
eign affairs the President was looking forward to 
a "world" foimded upon what he regarded as four 
essential human freedoms. 

The American heritage of freedom has made 
itself felt more recently in three international 
charters : the Atlantic Charter, the United Nations 
Charter, and lastly the Pacific Charter proclaimed 
at Manila by the eight states signing the South- 
east Asia Collective Defense Treaty. 

To turn to the last of these docimients, we should 
bear in mind the extent to which tlie principle of 



self-determination inspired the formulation of the 
Pacific Charter. The Pacific Charter states: 

FM-st, III lU'cordunce wilh tlie pnivlslotis of tbe United 
Nntioiis Charter, they [the signatory powers] uphold the 
principle of e<iual rights and self-determination of peoples 
nnd they will earnestly strive by every i>eacefiil means to 
jironiote self-government and to secure the indeijcndence of 
all countries whose peoples desire It and are able to 
undertake its responsihillties; Second, they are each 
prei)ared to continue taliiui,' elTective practical measures 
to ensure conditions favorable to the orderly achievement 
of the foregoing purimses In accordance with their con- 
stitutional procedures.' 

The great importance of this document is its 
application to all areas including underdeveloped 
or colonial areas. It exj)resses clearly the Amer- 
ican desire to see the principle of self-determina- 
tion extended throughout the world wherever a 
people desires and is prepared to assume the re- 
sponsibilities of an independent national existence. 
As Secretary Dulles suggested in his address of 
September 15 on the Manila Conference, "The 
Pacific Charter, on whicli the East and the "West 
did meet, may well prove to be the most momentous 
product of the Conference." ^ 

These examples are sufficient to suggest the 
cardinal importance of the concept of self-deter- 
mination in American thought about the relations 
of the United States with other nations. No one 
should neglect or minimize the significance of this 
article of American faith common to both our 
major political parties and to all representative 
American bodies. Imperfect as our efforts may 
occasionally have been as to international develop- 
ments in relation to this principle, we have never- 
theless striven for this goal, and it serves as a 
touchstone by which we judge the enduring value 
of international acts. 

To proceed to the more practical consequences 
of this idea, we pursue the principle of self-deter- 
mination as regards the internal life of nations 
with a view to the people of each nation having 
the right to enjoy government and other institu- 
tions of their own choosing as soon as they are 
prepared to conduct such institutions in an 
orderly, peaceful, and stable manner. We believe 
that each nation should be free to change its form 
of govermnent and, in accordance with its law, its 
current executive and legislative officers whenever 
the change actually represents the will of the peo- 
ple : that the nation should have the right freely 

= Bulletin of Sept. 20. 1954, p. 393. 
' Ibid., Sept. 27, in.'54, p. •13.3. 



October 18, 1954 



S7T 



to establish its own body of law and system of 
courts. We oppose any system of government 
or group of rulers imposed on a nation against its 
will. Each nation should have the freedom to 
determine its own economic institutions. This does 
not mean, of course, that we Americans are not 
firmly convinced as a people that a system of free 
enterprise offers the best hope of a dynamic 
economy and widely distributed prosperity. In 
the social and intellectual sphere the press, educa- 
tional and cultural institutions, and religious 
organizations should be free to function in accord- 
ance with popular wishes. It should be stressed 
that this conception of self-determination is not 
to be confused in any way with what the Soviets 
under Stalin tried to pass off as self-determination 
among national minorities — that is, a limited pos- 
sibility for an ethnic group to express its own cul- 
tural interests, as by use of its own language and 
alphabet for local purposes, while remaining 
otherwise subject to the centralized, absolute power 
of Moscow. 

Free Society of Nations 

The objective of self-determination which we 
seek in the international held is a free society 
of nations where each may establish its relations 
with others on the basis of mutual interest, free 
consent, and the requirements of international 
peace. This implies that all nations should have 
the riglit to enter into such local, regional, and 
wider international aiTangements and associations 
as will promote their mutual welfare without 
endangering that of nonmember nations. It pre- 
sumes that all such arrangements and associa- 
tions will of necessity be in accordance with the 
provisions of the U. N. Charter. 

On the other and negative side, the United 
States can never concede that any state should be 
free to force on the people and territory of another 
state its political dominion, its occupying forces, 
or its control over the national economic and in- 
tellectual life. Where self-determination fully 
governs the relations of nations there can be no 
room for one state to bring about the subversion, 
Hubjex,'tion, and exploitation of another, whatever 
concealed instrumentalities may be utilized for this 
l)urpose. The United States is dedicated to work- 
ing toward the creation of a world where the ex- 



tension and maintenance of such dominion is 
impossible. 

I know you members of the agrarian parties 
from Central and Eastern Europe are more imme- 
diately interested in how we Americans see the 
application of this principle of self-detennination 
to your homelands. It is clear to the world that 
the present regimes in your countries are imposed 
by a foreign power against the opposition of the 
overwhelming mass of the population in each state. 
There can be no doubt that if Soviet military and 
police power — and the Communist terror sup- 
ported thereby — could be rolled back, these 
regimes would quickly fall. Since we are devoted 
to the principle of self-determination, we cannot be 
reconciled to the regimes in your countries. We 
cannot adjust to their totalitarian practices and 
their denial of human rights. We cannot grow 
accustomed to their willingness to make their 
countries the subservient tools of a foreign power. 

We know that these regimes cannot last, for the 
freedom they lack is inherent in the human spirit. 
Sooner or later they must change or fall. These 
alien, hated tyrannies camiot endure as they are; 
the}' cannot solve the problems confronting them; 
they cannot satisfy the needs of the people ; they 
cannot make for a stable Europe or a tranquil 
world. They proclaim new courses which are only 
gestures, tactics, or ill-starred efforts to surmount 
rising difficulties. The fate of the peoples ruled 
by them is not tinally determined. 

It is our firm conviction that these Soviet 
colonies under totalitarian oppression are an his- 
torical anachronism in contemporary Europe. 
■\Miile they last, they cause misery to the captive 
peoples and by dividing Europe bring burdens and 
unsettlement to all of it. But the European com- 
munity of free peoples will eventually triumph 
and absorb them. The logic of history is on the 
side of freedom and not on the side of the Com- 
munists. If there is any historical inevitability, 
it is that the Europe of self-determination will 
prevail over the Europe of historical materialism. 

It is perhaps another inevitability in view of the 
basic trend of our history that when the United 
States looks to Europe its policy is to assist the 
progi'ess of freedom. Believing that a union of 
self-governing nations will extend and secure 
freedom in Europe, our purpose, despite any tem- 
porary setback in a single field, is to cooperate with 
all the fi'ee nations of Europe in advancing 



578 



Departmenf of State Bulletin 



Europeiui iiitejjratiuu in evory \v;iy we can. AVo 
see the captive nations of Central and Eastern 
Europe as l)i'l()ii<i:iii<j: to this unity. They belonj^ 
now in spirit and to the e.\t<.Mit possible tiirough 
their fi-ee spokesmen in exile; eventually they will 



conic into tiieir rif^iitl'ul place as equal inenil)ers 
in the free community of Europe. Toward this 
full reunion of your countries with free Eui'o])e 
the I'nited States is working constantly in every 
possible concrete way. 



Presentation of Claim Against Soviet Government 
for Destruction of B-29 off Hokkaido in 1952 



DEPARTMENT ANNOUNCEMENT 

Press release 527 dated September 25 

Ambassador Charles E. Bohlen delivered to the 
Soviet Foreign Office at Moscow on September 25 
a note from the U.S. Government to the Soviet 
Government preferring a formal diplomatic claim 
against the Soviet Government on account of the 
destruction by Soviet aircraft of a U.S. Air Force 
B-29 aircraft off Hokkaido, Japan, on October 7, 
15)52.' The note demands that the Soviet Govern- 
ment pay damages in the sum of $1,620,295.01 and 
invites the Soviet Government, in the event that 
the Soviet Government denies liability, to join in 
submitting this dispute to the International Court 
of Justice. 

Ambassador Henry Cabot Lodge, Jr., was in- 
structed to recjuest the President of the U.N. Se- 
curity Council to circulate the text of this note to 
the membere of the Council. In a recent proceed- 
ing the Security Council considered another Soviet 
attack against a U.S. aircraft committed on Sep- 
tember 4, 1954.^ 

In earlier interchanges of notes on the B-29 in- 
cident the Soviet Government contended that the 
incident took place near the Island of Yuri, which 
the Soviet Govenmient claims had become Soviet 
territory by virtue of the Yalta Agreement re- 
garding Japan of February 11, 1945.^ In the note 



' For the Soviet note of Oct. 12, 1952, regarding the in- 
cident and the U. S. reply of Oct. 17, 1952, see Bulletin 
of Oct. 27, 1952. p. 649. 

' Ibid., Sept. 20, 19.54, p. 417. 

' A Decade of American Foreign Policy, 19.'il-/i9, S. Doc. 
12,"?, 81st Cong., 1st sess., p. 33. 

Ocfober 18, 1954 



delivered today the U. S. Government repudiates 
the Soviet Government's construction of the Yalta 
Agreement regarding Japan and rejects the Soviet 
claim to any lawful territorial right to the Island 
of Yuri or to the Habomai Islands, of which the 
Island of Yuri is a component. 

The note follows a thorough investigation, since 
the date of the incident, into the circumstances of 
the shooting and into the possibility that crew 
membei's survived and came into the custody of 
the Soviet Government. 

The present note, based on the investigation, 
charges that the B-29 was shot down without 
warning over territory rightfully belonging to 
Japan and in which the U.S. aircraft were entitled 
to fly by the terms of the Security Treaty with 
Japan which came into effect April 28, 1952.'' It 
demands that the Soviet Government provide in- 
formation with respect to the whereabouts and wel- 
fare of any surviving crew members and make 
provision for the prompt return of any survivors 
whom the Soviet Govermnent may still be holding 
or of whose whereabouts the Soviet Government 
may be informed. 



TEXT OF NOTE 

Excellency : I have the honor to transmit to you here- 
witli. upon the in.stnution of my Government, the follow- 
ing communication : 

The Government of the United States of America makes 
reference to the destruction on October 7, 1952, by fighter 



' Bri.LETiN of Sept. 17, 1951, p. 464. 



579 



aircraft of the Union of Soviet Socialist Republics, of a 
United States Air Force B-29 airplane near the Japanese 
Island of Hokkaido. It will be recalled that by notes 
dated October 17, 1952 and December 16, 1952,' the United 
States Government, protesting the actions of the Soviet 
aircraft, requested the Soviet Government to make pay- 
ment for the destroyed airplane and for the lives of any 
of the crew who might have perished, and further re- 
quested the Soviet Government to provide information on 
the whereabouts and welfare of any of the crew members 
who might have survived, with a view to their return 
to the United States. 

The Soviet Government has not, in the period which 
has, elapsed since December 16, 1952 when the last United 
States note was delivered to it, given any indication of 
the fate of the crew members of the B-29 shot down by 
the Soviet aircraft. As the United States Government re- 
minded the Soviet Government in the note of October 17, 
1952, witnesses actually observed a Soviet Government 
patrol boat leave Suisho Island, a point clo.se to the spot 
where the B-29 was seen to go down, immediately after 
the shooting and proceed to the spot where the B-29 had 
hit the water, and some time later saw the boat return. 
The spot, the Soviet Government is further reminded, was 
in an area then and since freely accessible to Soviet Gov- 
ernment personnel and in the vicinity of the area of Yuri 
Island which the Soviet Government in its own account 
of the episode, in its notes of October 12, 1952 and No- 
vember 24, 1952, fixes as the area in which the episode 
took place. Therefore the United States Government 
could not, and cannot, accept either the Soviet Govern- 
ment's statement, in its note of November 24, 1952, that 
it possessed no information regarding the whereabouts of 
the members of the crew of the B-29 airplane or the Soviet 
Government's continued silence in regard to whether the 
Soviet Government has any information concerning the 
fate of any of the crew members, whether any are alive, 
and whether the Soviet Government proposes to make ar- 
rangements for their return. Nor can the United States 
Government acquiesce in the continued failure of the 
Soviet Government to give any indication of willingness to 
make amends for the damage it caused and for which it 
is responsible, in spite of the requests therefor in the 
United States Government's notes above described. 

The purpose of the present communication is, in view of 
the foregoing, to place solemnly upon the record all the 
facts which the United States Government has been able 
to gather on the subject and based thereon to prefer 
against the Soviet Government a formal international dip- 
lomatic claim as set forth below. 

I 

The United States Government charges, and is pre- 
pared to prove by evidence in an approjjriate forum, the 
following : 

1. In the Treaty of Peace between the Allied Powers 
and Japan signed in the City of San Francisco September 



8, 1951,' provision was duly made, in Article 6 thereof, 
for the stationing and retention, imder or in con.sequence 
of bilateral or multilateral agreements between Japan 
and any of the Allied Powers, of armed forces in Japa- 
nese territory following the termination of the occupa- 
tion of Japan by occupation forces of the Allied Powers. 
On the same date the United States of America, as one 
of the Allied Powers to whom reference is made in the 
Treaty of Peace, entered into a Security Treaty with 
Japan by which Japan granted, and the United States of 
America accepted, the right to dispose land, air and sea 
forces of the United States in and about Japan upon the 
coming into force of the Treaty of Peace. 

The Treaty of Peace with the Allied Powers and the 
Security Treaty between the United States of America 
and Japan came into force April 28, 1952, and thereupon 
the state of war between Japan and each of the Allied 
Powers terminated and the full sovereignty of the Japa- 
nese over Japan and its territorial waters was duly rees- 
tablished. 

In pursuance of the Security Treaty and with the con- 
sent of the Government of Japan, the United States 
Government after April 28, 1952, maintained air forces 
and aircraft in and about Japan which engaged and con- 
tinued to engage in such activities as were proper and 
necessary to provide for the defense of Japan and of the 
United States' forces maintained therein against aggres- 
sion, and for the purpose of deterring armed attack upon 
them. 

Before and on October 7, 1952, pursuant to the Secu- 
rity Treaty and agreements thereunder between the Gov- 
ernment of Japan and the Government of the United 
States, regulations were in effect for Japan governing 
civil and military air traffic control and communications 
systems. To enforce these regulations and to maintain 
orderly traffic control over overflying aircraft, civil and 
military, appropriate United States authorities within 
Japan were, by the United States Government and with 
the consent of the Government of Japan, duly charged 
with the major responsibilities for the operation of the 
air traffic control system respecting civil and military 
aircraft and with the enforcement thereof. As was at 
all times well known to the Soviet Government, the appli- 
cable regulations required that all aircraft proposing to 
fly into the air space of Japan should make prior noti- 
fication to appropriate air traffic authorities within Japan 
and particularly that any military aircraft proposing to 
fly into the air space of Japan should make prior appli- 
cation to appropriate control authorities within Japan 
and receive prior authorization for such fli;;ht. 

2. In the morning of October 7, 1952, an unarmed 
United States Air Force B-29 airplane. No. 44-61S15, bear- 
ing the identification call sign "Sunbonnet King", was 
duly dispatched from its base in the Island of Honshu 
in Japan, to perform a duly authorized flight mission 
over the Island of Hokkaido, Japan, and upon completion 
to return to its base. The dispatching of the B-29, its 
mission, and its activities thereafter were all in the pur- 
suance of the duties and functions of the United States 



•For the Soviet note of Nov. 24, 1952, and the U. S. 
reply of Dec. 16. 1952, see ibid., Jan. 5, 195.3, p. 11. 

580 



'Ibid., Aus- 27, 1951, p. 349. 

Department of Sfofe Bulletin 



CJovernnient and the I'nited Stntes Air Fdrco uiuUt the 
Treaty of Peace and the Security Treaty Uescrit)ed above. 
Neither the dispatchiii!; nor the mission was intended or 
calculated to \k'. nor were the activities thereafter per- 
formed tiy the aircraft, in any way hostile to the Soviet 
Government or any other Kovernnient, or directed a;;alnst 
Soviet installations or jx-rsonnei of the Soviet Government 
or any other government in any place. 

The aircraft was manned by a crew of eight, all of them 
members of the United States Air Force and citizens and 
nationals of the United States of America. The aircraft 
commander was Captain Eugene Minot Enirlish, Serial 
No. AO 7(!S042. The copilot was Second Lie\itenant I'aul 
Eufiene Brock, Serial No. AO 22210127. The navijjator 
was First Lieutenant John Rohert.son Dunham, Serial No. 
20173 A. The other crew members were Staff Sergeant 
Samuel Albion Colgan. Serial Xo. AF 31.379700; Staff 
Sergeant John Arthur Hirsch, Serial No. AF 19.S29704 ; 
Airman First Class Thomas Gerald Shipii, Serial No. AF 
18365941 ; Airman Second Class Fred Grady Kendrick, 
Serial No. AF 143472'.14 ; and Airman Second Class Frank 
Eugene Neail, Serial No. 133!V12r)7. 

3. Acting in compliance with their llight mission in- 
structions. Captain English and his crew in the U-29 air- 
craft, "Sunbonnet King", after leaving the Island of Hon- 
shu, duly commenced flying over the Island of Hokkaido, 
beginning approximately 11 o'clock in the morning local 
time. At approximately 2 o'clock in the afternoon local 
time, while the B-29 was over the mainland of Hokkaido, 
flying at approximately I.", ."00 feet altitude, Soviet Gov- 
ernment authorities having become aware of these facts 
deliberately dispatched two fighter aircraft to intercept the 
B-29 over Japanese territory, and continuing under the 
control of Soviet Government authorities, the two Soviet 
fighter aircraft thereupon deliberately flew in a coui-se 
calculated to converge with the course of the B-29 and to 
intercept it. The two Soviet fighter aircraft were not 
notified in advance by Soviet authorities to the traffic con- 
trol authorities in Japan, and they were without any 
license or authority whatsoever to overfly the territory of 
Japan. Nevertheless, the Soviet authorities then con- 
trolling the actions of the aircraft, and the Soviet pilots 
flying the aircraft, deliberately and willfully, unbeknown 
to the crew of the B-29 and with a calculated disregard 
of the sovereignty of Jajian, of the jxisition of the United 
States in Japan, and of the United States defense of 
Japan, and in violation of the air traffic control regula- 
tions lawfully in effect in and over Japan respecting over- 
flight of the territory of Japan, directed the Soviet air- 
craft westward as described. At 2 : lii p. m. local time 
the two Soviet fighter aircraft, so directed, reached a 
position in the air space of Hokkaido approximately 
thirty-two miles west from Yuri Island and six miles 
north of Nemuro Peninsula over the territorial waters 
of the Island of Hokkaido, substantially directly above 
the B-29's position, flying and continuing to fly at a 
height at which the crew of the B-29 could not then or 
thereafter observe the presence of the Soviet aircraft but 
at which the B-29 could be and was continuously observed 
by the pilots of the Soviet fighter aircraft and undoubtedly 
by the Soviet authorities controlling the pilots. Then the 
Soviet fighter aircraft, continuing to act under the direc- 



tion and control of the Soviet authorities, proceeded to pace 
the flight of the H~29 from 2 : 15 p. ra. local time to 2 : 31 
p. m. local time, continuously hovering over the B-20, 
while the B-29 was engaged In innocent flight over the 
Island and adjacent waters of Hokkaido within Japan. 

At approximately 2 : 'J9 p. ni. local time the B-'29, pass- 
ing at the end of Nenmro Peninsula of the Island of Hok- 
kaido, was in the process of effecting a nornutl turn for 
B-29 type aircraft, in order to enable the B-29 to fly 
westward and farther Into the mainland of Hokkaido; in 
so doing it came over the water area adjacent to the tip 
of the Nenuiro Peninsula close to the Nosappu Lighthouse 
there when, undoubtedly upon instructions from the 
Soviet controlling authorities, the pacing Soviet fighter 
aircraft dived from their high altitude, behind and un- 
beknown to the B-29 and its crew, and without any warn- 
ing whatsoever opened fire on the B-29, with several 
deliberate and successive bursts. Simultaneously, like- 
wise upon the orders of the competent Soviet authorities, 
in concert with the pilots in the fighter aircraft, Soviet 
personnel then stationed on the Island of Yuri east of the 
Nemuro Peninsula, opened fire upon the B-"29 from the 
ground. 

The B-29 was struck by the fire from the fighter air- 
craft, and by ground flre, was disabled and plunged into 
the sea, hitting the water at a point between Yuri Island 
and Akiyuri Island, southwest of Harukarimoshiri Island, 
all in territory rightfully belonging to Japan. The air- 
craft, broken up in several parts, exploded as the water 
was hit and floated as wreckage upon the surface of the 
water. 

Shocked and unable to control the aircraft, the crew of 
the B-29 called out on voice radio on an international 
emergency channel that they were in extreme distress, and 
attempted to abandon the plane in the air. The United 
States Government has concluded, and charges, that some 
or all of the crew of the B-29 .successfully parachuted to 
the sea at approximately the iwsition where the aircraft 
hit the water. 

Within a few minutes thereafter, and while the wrecked 
aircraft and its crew were still on the surface of the sea, 
a patrol boat belonging to the Soviet Government, upon 
orders of competent Soviet authorities, left the Island of 
Suisho, east of the Nosappu Lighthouse and northwest of 
the position where the B-29 was shot and came down, 
and proceeded to the scene of the wreckage. The I'nited 
States Government concludes, and therefore charges, that 
this was for the purpo.se of picking up survivors and 
objects in the debris of the aircraft of possible interest to 
the Soviet Government. Undoubtedly having accom- 
plished its mission the patrol boat then returned to Suisho 
Island. The United States Government concludes, and 
charges, that the Soviet Government's |)atrol l)oat did pick 
up items of interest to the Soviet Government as well as 
.survivors still alive and bodies of other crew members, if 
dead. Undoubtedly the competent Soviet authorities in 
the area had and prepared a complete report which was 
thereafter undoubtedly duly submitted to the appropriate 
responsible authorities of the Soviet Government. The 
pilots of the Soviet aircraft involved in the pacing and 
shooting of the B-29 were, after effecting the destruction 
of the B-29 as above noted, the United States Government 



October IB, 1954 



581 



concludes, and charges, undoubtedly recalled immediately 
by Soviet ground authorities to base, and thereupon un- 
doubtedly submitted in due course to their superiors in 
the Soviet Government their reports of their conduct, and 
such reports, together with all additional reports from in- 
formed Soviet authorities in the area, were undoubtedly 
duly submitted to the appropriate authorities of the 
Soviet Government. 

II 

The Soviet Government in its note of October 12, 1952, 
and in its note of November 24, 1952, replying to the 
United States Government's note of October 17, 19.52, will- 
fully and knowingly made material misstatements of fact 
with the purpose of creating an untrue record and of 
misleading the United States Government. Among these 
misstatements are the following : 

A. With respect to the note of October 12, 1952. The 
United States Government has already pointed out in its 
reply of October 17, 1952, respects in which the Soviet 
Government note of October 12 was false and misleading. 
The United States Government is prepared to prove by 
evidence in an appropriate forum In particular the follow- 
ing: 

1. The note states tliat the "B-29 bomber violated the 
state frontier of the USSR in the area of Yuri Island". 
As the United States Government has frequently and con- 
sistently declared, the Soviet Government does not law- 
fully have a state frontier in the area of Yuri Island. The 
United States declares again that the territorial rights 
and sovereignty of Japan before, on and after October 7, 
1952. extended and now extend north and east of the main- 
land of Hokkaido to include the island and area of Yuri 
and all of the Habomai Islands, up to and including the 
Island of Shikotan, and their territorial waters. 

2. The statement that two Soviet fighters "demanded 
that the American bomber follow them for a landing to 
the nearest airdrome" is false and misleading and was 
known by the Soviet Government to be false and mislead- 
ing when made. As above set forth, two Soviet fighters 
were directed to fly and had flown over the Hokkaido 
territorial waters to a point within the air space of 
Hokkaido more than twenty-five miles west of the tip of 
Nemuro Peninsula and deep within Japanese territory; 
had intercepted the flight path of the B-29, unbeknown to 
the B-29 crew, and hovering over it followed it around 
within Japanese territory for at least sixteen minutes, as 
above noted, knowingly traversing the land mass and adja- 
cent territorial waters of the Nemuro Peninsula of Hok- 
kaido. It is completely false that any communication 
was sent from the Soviet fighters or other Soviet .source to 
the B-29 on any subject, and it is particularly false that 
the fighters or any other Soviet source made any requests 
or demand that the B-29 follow the fighters or that it land 
at any iilace, and no airdrome or landing jjlace was ever 
pointed out to the B-29 by anybody. In fact, as described 
above, the Soviet fighters deliberately and unlawfully 
paced the B-29 within the Japanese air space of Hok- 
kai(l() and then shot at it without any warning whatever 
and without even first making their presence known to 
the crew of the B-29. 



3. The statement that the B-29 opened fire on the Soviet 
fighters is completely false and was known by the Soviet 
Government to be false when made. The only aerial 
firing which was done in the course of the incident was 
done by the Soviet fighters, which came out of their con- 
cealed positions and attacked and hit the B-29, still inno- 
cent of their presence or purposes : and in so emerging 
from the rear, the Soviet jiilots contrived and calculated 
that the B-29 would have no opportunity for self-defense, 
even if its crew, contrary to the fact, were able to open 
defensive fire. Furthermore, the B-29 airplane had, prior 
to its departure from its base that morning, and in ac- 
cordance with standard operating procedures, been ren- 
dered powerless to engage in effective combat by United 
States Air Force armorers at the base, and the aircraft 
remained thereafter continuously so powerless, for the 
mission of the aircraft was to be performed entirely with- 
in the territory of Jaiian with no reasonable ground for 
anticipation of meeting hostile or aggressive conditions. 

4. The statement that the Soviet fighters engaged in 
"return fire" is false, and was known by the Soviet Govern- 
ment to be false when made. The only firing whicn was 
done was that of the Soviet fighters themselves, aided by 
a Soviet ground battery, and was all directed against the 
B-29. 

5. The statement that the B-29 after being fired uiwn, 
"went off into the direction of the sea" is, except in the 
respect that the B-29 upon being shot down by Soviet 
fire fell into the sea at the ix)sition above noted, particu- 
larly false and was known by the Soviet Government to 
be false when made. The implication that the Soviet 
Government was unable to state what happened to the 
B-29 after it was hit by attacking fire is the more culpable 
in view of the fact that the destruction of the B-29 took 
place within the per.sonal view of observing Soviet offi- 
cials, and the wreckage was immediately visited and ex- 
amined b.v the Soviet officials who were on board the, 
patrol boat dispatched from Suisho Island to the scene 
of the crash, as above described. 

B. With respect to the note of November 24, 1952. The 
United States Government has already in its reply of 
December 16, 1952, pointed out respects in which the al- 
legations of this note were false. The United States 
Government is, in particular, prepared to prove by evi- 
dence in an approptiate forum the following: 

1. The statement that the United States Government 
acknowledged in the note of October 17 that the B-29 was 
armed is false. The B-29 was at all relevant times un- 
armed, its guns having been rendered inoperative by its 
armorers, as stated above. 

2. All the other statements which reiterate the false 
and misleading averments contained iu the Soviet Gov- 
ernment's note of October 12, are equally false and mis- 
leading, as noted above. 

3. The statement that the Soviet Government is not 
in possession of any information regarding the where- 
abouts of the crew of the B-29 is false and known by the 
Soviet Government to be false. Apart from the observa- 
tions of iJersonnel whom the Soviet Government main- 
tained, unlawfully, on Yuri Isl.ind and in that area, the 



582 



Department of Stale Bulletin 



observations of the Soviet Oovernnieiit personnel on the 
pntrol boat ilisiiatehed from Sulsho Island, whieh the 
United States Government is prepared to prove by evi- 
denee as above noted, elearly save the Soviet Oovern- 
ment complete information on these suljjeets. 

Ill 

The I'nited States Government finds, and charKes, that 
the Soviet Government in the fore^'oinj; facts was guilty 
of delilierate and willful violations of international law 
on acount of which it has become liable to the United 
States Government for damages and other amends: 

1. It was unlawful for the Soviet authorities to have 
dispatchetl aircraft with intention and instruction to over- 
fly the territory of Japan at any point without first noti- 
fying the competent authorities of the Uniteil Slates and 
receiving permission therefor, as required by regulations 
and international law. 

2. It was unlawful for the Soviet military aircraft to 
overfly the territory of Hokkaido ami to have tarried 
there, and in the circumstances particularly reprehensible 
and immoral for the Soviet authorities to conceal from the 
li-2'J aircraft the presence of the two Soviet lighter air- 
craft over the territory of Japan and to intercept and to 
pace its flight over the territory of Japan, these being 
hostile and belligerent acts under international law. 

3. It was specifically unlawful for Soviet authorities to 
have intercepted the B-29 aircraft in the course of the 
flight at any point, to have attempted to bring it down 
at any such point, even at the point claimed by Soviet au- 
thorities as "the region of Yuri Island". 

4. Assuming, contrary to the fact, that the Soviet au- 
thorities had any legal justification for seeking to bring 
the B-29 down to land, these authorities willfully vio- 
lated all applicable rules of international law, first, in 
that they failed to give to the B-29 and its crew any prior 
warning or any prior direction or request to land ; sec- 
ondly, in that they did not lead the B-29 or its crew to an 
appropriate landing field or point out such a landing field 
to them ; thirdly, in that they did not in the circumstances 
described give the B-29 or its crew prior warning of in- 
tention to tire. 

5. It was unlawful, regardless of prior warning or di- 
rection to land, for the Soviet authorities either in the 
air or on the ground to fire on the B-29 under the cir- 
cumstances mentioned and in the area above mentioned. 

6. It was unlawful for the Soviet authorities to have 
failed to respond truthfully to the United States Govern- 
ment's request of October 17, 19.52 with respect to sur- 
vivors ; in particular it was the duty of the Soviet Govern- 
ment to inform the United States Government of the 
findings of fact reiwrted or made by the patrol boat offi- 
cers and by other local Soviet authorities. To the extent 
that it was determined by Soviet authorities that mem- 
bers of the crew were alive, it was the duty of the Soviet 
Government so to inform the United States Government 
and make arrangements for their return. On the other 
hand if any crew members were found to be dead it was 
the duty of the Soviet Government so to inform the United 
States Government and to make arrangements to make 
return of the bodies. It is still, and has continuously been, 

Ocfober J 8, 1954 



the duty of the Soviet Government to keep the United 
States Government currcnily informed of all facts in 
Soviet possession concerning the crew members, to fa- 
cilitate access to them by appropriate representatives of 
the United States Government, to arrange for their re- 
turn and to provide them with the maximum degree of 
care and comfort in the interim. 

7, It was unlawful for the Soviet Government to have 
retained any portion of the aircraft or the eipiipment 
thereon without the consent and agreement of the United 
States Government ; and since no such consent or agree- 
ment has been granted by the United States Government 
it is the duty of the Soviet Government to return to the 
United States Government any portions of the aircraft 
or ecpiipment thereon which were salvaged by the Soviet 
authorities. The United States Government demands that 
tills return be m;ide forthwith. 

For all these violations of international law the Soviet 
Government is liable to the United States as set forth 
herein. 

IV 

The Soviet Government in its notes of October 12 and 
November 24, 1952 has made certain assertions with re- 
gard to an alleged state frontier of the Soviet Union in 
the area where the B-29 was shot down. The United 
States Government denies that these assertions are valid, 
and the United States Government is prepared to dem- 
onstrate the validity of its position by evidence and by 
considerations of international law in any appropriate 
forum. 

In its note of November 24, 1952, the Soviet Govern- 
ment particularly states that the United States position 
that Yuri Island, at or east of which the Soviet Govern- 
ment apparently claims a state frontier of the Soviet 
Union, is not lawfully Soviet territory is "in crude con- 
tradiction with the provisions of the Yalta agreement 
concerning the Kurile Islands which was signed by the 
Government of the United States of America." The 
United States Government, reiterating its denial of valid- 
ity to the Soviet Government statement, takes this op- 
portunity to declare the following: 

The United States Government is aware that military 
forces of the Soviet Government were physically present, 
together with their military equipment, on or near Yuri 
Island and in adjacent positions among the Habomai Is- 
lands on October 7, 1952, and prior thereto following the 
surrender of the Japanese Government to the Allied 
Towers. But this presence, in its origination and its 
continuance, and particularly after the effective date of 
the Treaty of Peace between the Allied Towers and Japan, 
April 28, 19.52, was without any justification in interna- 
tional law or in morals, was in deliberate violation of the 
terms of the Japanese Surrender and of the agreement 
regarding surrender and occupation of Japan between 
the Soviet Government and the Allied Powers, gave the 
Soviet Government no legal right, title or interest in this 
area and provided the Soviet Government with no privi- 
lege or justification for the actions taken by it on October 
7, 1952, against the B-29 and its crew, as described above. 
' More particularly, the Inited States Government states, 
in reply to the Soviet Government's assertions: 

583 



1. No disposition having the legal force and effect of 
alienating from Japan the Habomai Islands, including the 
area in which occurred the wrongful actions of the Soviet 
Government on October 7, 1952. as above detailed, has 
ever taken place. Such disposition could be made only by 
or with the consent of the Japanese Government, and no 
such consent has ever been given. The only renunciation 
by the Japanese Government of territory north of Hok- 
kaido was by the Treaty of Peace between Japan and the 
Allied Powers of September 8, 1951, and in this document 
the Government of Japan did not relinquish Japanese 
sovereignty over the area involved in the acts of the Soviet 
Government complained of herein, nor does it confer or 
recognize any right in the Soviet Government with respect 
thereto. 

The United States Government both on the occasion of 
the signing of the Peace Treaty and the Security Treaty 
and on the occasion of the consent by the United States 
Senate to their ratification by the President of the United 
States, as required by the Constitution of the United 
States of America, and the President by his ratification, 
made clear that the Habomai Islands were to be con- 
sidered as continuing to belong to Japanese sovereignty. 
The United States Senate declared : 

"As part of such advice and consent the Senate states 
that nothing the treaty contains is deemed to diminish or 
prejudice, in favor of the Soviet Union, the right, title, 
and interest of Japan, or the Allied Powers as defined in 
said treaty, in and to Soiith Sakhalin and its adjacent 
islands, the Kurile Islands, the Habomai Islands, the Is- 
land of Shikotan. or any other territory, rights, or inter- 
ests posses.sed l)y Japan on December 7, 1941, or to confer 
any right, title or benefit therein or thereto on the Soviet 
Union." 

The Government of Japan has likewise oflBcially char- 
acterized the Habomai Islands and Shikotan as remaining 
under Japanese sovereignty and as not included in the 
phrase "Kurile Islands" as used in the Treaty of Peace. 

No other actiwn or conduct by the Government of Japan, 
or by the United States Government or by the Allied 
Powers signatory to the Peace Treaty, has been taken 
which has the legal effect of transferring or consenting 
to the transfer of sovereignty over the area of Yuri Island 
and other Habomai Islands, or of Shikotan, to the Soviet 
Government. 

2. The statement of the Soviet Government that the 
United States position that Yuri Island is not lawfully 
part of Soviet state territory is in "contradiction" with 
the "Yalta agreement concerning the Kurile Islands, which 
was signed by the Government of the United States of 
America" is untrue. 

(a) The geographical name "Kurile Islands", in the 
context of the Treaty of Peace and in the context of the 
Yalta Agreement to which the Soviet Government refers, 
does not include and it was not intended by the parties 
thereto to include, the Island of Yuri, which is a part of 
the Habomai Islands, all of which were and are separate 
and apart from the Kurile Islands. 

(b) The Yalta Agreement regarding Japan of Febru- 
ary 11, 1945 was not Intended to and did not contain any 
provision by which the Soviet Government became entitled 
unilaterally to seize, occupy, or exercise sovereignty over, 
or to become entitled to possess, any Japanese territory 

584 



whatever, neither the Kurile Islands, nor the Habomai 
Islands nor any other area, and in particular not that 
area of the sea, land and air space of Japan in which 
the United States B-29 aircraft was intercepted, tracked 
and shot down by Soviet fighter aircraft, as recited above. 
The Yalta Agreement was, as the Soviet Government 
has at all times well known, a memorandum expressing 
the views of the President of the United States, the Prime 
Minister of Great Britain, and the Premier of the Union 
of Soviet Socialist Republics, each acting within his Gov- 
ernment's constitutional powers and limitations, respect- 
ing a proposal by the Premier of the Union of Soviet So- 
cialist Republics that in the event of the Soviet Govern- 
ment's entrance to the war against Japan, jointly witlx 
the other Allied Powers, the Soviet Government should, in 
the final peace settlement terminating the war, be sup- 
ported in a claim for the return to the Soviet Government 
of certain Japanese territory formerly owned by the 
Czarist Government of Russia. Provisions of the memo- 
randum were subsequently reflected in the terms of sur- 
render proclaimed by the Allied Powers, with the knowl- 
edge and consent of the Soviet Government and its subse- 
quent adherence, to the Government and people of Japan, 
accepted by the Government of Japan in the document 
of surrender. The Treaty of Peace with Japan duly and 
solemnly signed and ratified by the parties thereto was 
intended to constitute the final peace settlement envisaged 
by the parties to the Yalta Agreement on Japan of Feb- 
ruary 11, 1945 ; and so far as concerns any relevant under- 
takings which the United States Government may ha\e 
made under that Agreement the Treaty of Peace with 
Japan constitutes the full performance of such under- 
takings. 

(c) The provisions of the Yalta Agreement and the 
intentions of the parties thereto were made clear not 
only in the Treaty of Peace but in the intermediate procla- 
mations of policy by the Allied Powers. 

These documents provided that in the event of Japanese 
surrender "Japan would not lose access to raw mate- 
rial areas", Japan would be stripped only of the Islands 
"vv-hich she has .seized or occupied since the beginning cf 
the First World War in 1914", and "be expelled from all 
other territories which she has taken by violence and 
greed", and the Allies proclaimed that they "covet no 
gain for themselves and have no thought of territorial 
expansion". 

The Island of Yuri and its territorial waters, as well as 
all the Habomai Islands and the Island of Shikotan and 
their territorial waters, including all the area in which 
the wrongful actions of the Soviet Government on October 
7, 1952, as above detailed, took place, did not and were 
not intended to fall within territory to be detacned from 
Japanese sovereignty by the Treaty of Peace, by the Yalta 
Agreement or any other policy formulation of the Allied 
Powers for the reasons that ; 

(i) The Habomai and Shikotan Islands were at no 
time within the sovereignty of the Czarist Government 
of Russia or of the Soviet Government, or ever claimed 
by them at any time prior to the unlawful unilateral seiz- 
ure of them by the Soviet Government. On the contrary, 
they were from ancient times territory of Japan, never 

Department of State Bulletin 



taken by violence or wreeU, always occupied by Japanese 
people, nn liite;;rnl portion of the Japanese patrimony, 
nnd were so recognized by the Soviet Government and Its 
predecessor governments at all revelant times prior to 
the unlawful unilateral seizure above described ; 

(ii) The islands nnd waters in the area described con- 
stituted, and of necessity still constitute, an integral por- 
tion of the economic resources of the Japanese people, 
containins traditional domestic llsberles from which the 
JajMinese people have derived their economic subsistence 
and they constitute, and have from ancient times con- 
stituted, normal sea routes for the internal commerce of 
Japan. 

3. The United States Government declares rhut the 
unilateral seizure and continued occupation of the Ha- 
boniai Islands and Shikotan, and the area adjacent 
thereto, by forces of the Soviet Government, and the 
government thereof as if they were within the sovereignty 
of the Soviet L'niou and removed from the sovereignty of 
Japan, constitute fla;:rant violations by the Soviet Govern- 
ment of the terms of the Yalta Agreement reicardinK 
Japan of February 11, 1945, mentioned above; of the terms 
of the Cairo Declaration of the Allied Powers of Decem- 
ber 1, 1943, and of the Totsdam Declaration of July 26, 
1945, setting forth the terms of surrender offered to the 
Government of Japan to all three of which the Soviet 
Government adhered by its declaration of August 9, 1945 ; 
and of the Soviet Government's Declaration of War 
against Japan of August 9, 1945, and of the terms of 
acceptance of the Allied Surrender Terms by the Japanese 
Government of August 14, 1945. The United States Gov- 
ernment declares that the Soviet Government, by its fore- 
going commitments, solemnly pledged that no territory 
would be talien from Japan except in the diplomatic 
process of a treaty of peace with all the Allied Powers, that 
the Soviet Government did not covet any gain for itself 
and had no thought of territorial expansion and would 
not claim or take from Japan any territory which Japan 
had not taken by violence and greed. 

The United States Government further declares that 
regardless of the rights, if any, which the Soviet Govern- 
ment might claim with respect to the Kurile Islands, it 
had and has no valid claim whatever by virtue of the 
Yalta Agreement of February 11, 1945, or otherwise, to the 
Habomai Islands, including Yuri Island and Shikotan 
and their territorial waters, and the area in which the 
unlawful actions took place on October 7, 1952, as above 
described, were committed by the Soviet Government; 
but it was the afl3rmative duty, for the violation of v.'hich 
it is legally liable to the United States, as well as to 
Japan, not to attack, obstruct or Interfere with the per- 
formance by the United States Government of its func- 
tions under the Treaty of Peace with Japan and the 
Security Treaty and the Administrative Agreement 
thereto. 

The United States Government does not deem it neces- 
sary to dwell at this time upon the various aspects in 
which the Soviet Government has further callously vio- 
lated the various obligations assumed by it in the course 
of the discussions by the heads of state at the Yalta Con- 
ference reflected in the Yalta Agreement, and particularly 



the terms expres.sed and implied as to the Soviet (jov- 
ernment's association with the Allied Powers in the war 
against Japan, Its adherence to the Allied Surrender 
Terms, the character of Its participation In the occupa- 
tion of Japan following the surrender, and ils adherence to 
the flual Treaty of Pciice, and the fact that by virtue of 
its rei)rehensilile conduct in these regards the Soviet 
Government would in any event disentitle itself to any 
territorial aggrandizement at the expense of Japan and 
the Japanese people. 

4. The United States further declares that the uni- 
lateral seizure and continued occupation and exerci.se 
of sovereignty over the Ilabomni Islands and the area 
adjacent thereto by the Soviet forces, and the actions of Oc- 
tober 7, 1952, described al)ovo, were and have been carried 
out by the Soviet Government with the purpose and effect 
of harrying the Japanese people; of hampering their op- 
portunities to make a living from their traditional fish- 
eries in the sea as has been their ancient and inalienable 
right; of preventing normal commerce with and within 
Japan; of hampering domestic police activities necessary 
for the exerci.se of full resj)onsibiiity and sovereignty over 
the islands of Japan by the Japanese Government as 
well as the defense thereof with the assistance of the 
United States Government ; and of Intinddating the Gov- 
ernment and people of Japan. Neither the United States 
Government nor any authorized representative thereto, in 
the Yalta Agreement or otherwise, has ever consented 
directly or indirectly to this immoral and unlawful depri- 
vation of the Japanese people by a foreign power. 

5. The United States Government further declares that 
nothing in the Treaty of Peace, the Yalta Agreement of 
February 11, 1945, or any other valid international act, 
document or disposition, provided any justification for 
the actions taken by the Soviet Government with respect 
to the B-29 aircraft descrilied above, including the refusal 
of the Soviet Government to provide the United States 
with true information concerning the incident and the 
fate of the crew, as described above. 



The United States has suffered the following items of 
damage in direct consequence of the foregoing illegal acts 
and violations of duty for which the Soviet Government 
is responsible, and the United States Government de- 
mands that the Soviet Government pay to it the following 
sums on account thereof: 

1. The United States Air Force airplane B-29, No. 
44-C1815, and its contents at the time of its destruction 
on October 7, 1952, valued in total at $919,984.01. 

2. Damages to the United States by the willful and un- 
lawful conduct of the Soviet Government, .$300,311. 

3. Damages to the next of kin, nationals of the United 
States, for the deaths of the crew members resulting 
from the willful and unlawful conduct of the Soviet Gov- 
ernment or for the willful and unlawful withholding by 
the Soviet Government of such members of the crew as 
survived, $400,000. 

Total $1,620,295.01 

The United States Government declares that its demand 
for compensation on account of the members of the crew 



October 18, 1954 



585 



who survived does not imply the acquiesceuce of the 
United States Government in the withholding of those 
crew members from return to the United States Govern- 
ment, or the suppression by the Soviet Government of 
Information regarding their whereabouts or welfare or 
the making of false statements by the Soviet Govern- 
ment with respect thereto : and the United States takes 
this opi)ortunity again to demand that the Soviet Gov- 
ernment forthwith provide the information in this regard 
which has been requested by the United States Govern- 
ment, and make provision for the prompt return of any 
crew members whom It may still be holding or of whose 
whereabouts it Is Informed, and in the Interim to provide 
them with the maximum degree of care and comfort and 
facilitate access to them by appropriate representatives 
of the United States Government. The United States 
Government further reserves the right to make additional 
demand upon the Soviet Government for amends and other 
actions on account of its conduct on or since October 7. 
1952, with respect to such survivors. 

Furthermore, the United States has not Included In 
Its demand for damages, specified above, any sum on 
account of the Items of Intangible Injury deliberately and 
intentionally caused to the United States Government and 
the American people, and to the Government of Japan and 
the Japanese people, liy the wrongful actions of the Soviet 
Government. The United States Government in this re- 
gard has determined to defer to a future date the formu- 
lation of the kind and measure of redress or other action 
which the Soviet Government should take which would 
be appropriate In International law and practice to con- 
firm the Illegality of the actions directed by the Soviet 
Government against the United States Government and 
the American people, and to defer to the Government of 
Japan the matter of the liability of the Soviet Government 
for actions directed by the Soviet Government against the 
Government of Japan and the Japanese i)eople. 

The Government of the United States calls upon the 
Union of Soviet Socialist Republics promptly to make Its 
detailed answer to the allegations and demands made In 
this communication. Should the Soviet Government In 
Its answer acknowledge its indebtedness to the United 
States on account of the foregoing and agree to pay the 
damages suffered and to comply with the demands as 
above set forth, the United States Government is pre- 
pared, if requested, to present detailed evidence in support 
of its calculations of damages suffered and alleged. If, 
however, the Soviet Government contests liability, It Is 
requested so to state In its answer. In the latter event, 
the Soviet Government is hereby notified that the United 
States Government deems an international dispute to 
exist falling within the competence of the International 
Court of Justice and that the United States Government 
proposes that that dispute be presented for hearing and 
decision In the International Court of Justice. Since it 
appears that the Soviet Government has thus far not 
filed with that Court any declaration of acceptance of the 
compulsory jurisdiction of the Court, the United States 
Government invites the Soviet Government to file an 
appropriate declaration with the Court, or to enter into 
a Special Agreement, by which the Court may be em- 
powered in accordance with ils Statute and Uulos to deter- 



U.S. Requests Repatriation off 
Noel, Herta, and Hermann Field 

NOTE TO HUNGARY 

Press release 535 dated September 28 

Folloioing is the text of a note delivered on 
September 28 to the Hungarian Ministry of For- 
eign Affairs hy the American Legation at Buda- 
pest concerning the arrest and imprisonnient of 
Noel and Herta Field: 

The Legation of the United States of America 
presents its compliments to the Ministry of For- 
eign Atfairs and on instrnctions of tlie United 
States Government has the honor to refer to the 
IMinistry's note of December 7, 19-1:9 alleging that 
none of the American citizens Noel, Herta and 
Hermann Field had been in Hungary since the 
preceding May. In this connection the United 
States Government wishes to inform the Hun- 
garian Government that the former Deputy Chief 
of Department Ten of the Polish Ministry of Pub- 
lic Security (MBP), Jozef Swiatlo has revealed 
the following information : 

Prior to the Rajk trial, General Roman Rom- 
kowski and Swiatlo traveled from Warsaw to 
Budapest in an effort to gather evidence against 
certain Polish nationals who were thought to have 
been involved in the Rajk "affair" and to be asso- 
ciated with the Noel Field whom the Hungarians 
were linking with the Rajk "conspiracj-". In 
Budapest Romkowski and Swiatlo were intro- 
duced to Gabor Peter (then head of the Hungarian 
Police) and his assistant, Colonel Istvan Szucs. 
The case was discussed with Szucs and it was 
decided whicli of tlie witnesses wotild be inter- 
rogated. 

Swiatlo renuiinetl in Budapest twelve days. 
During this time it was learned how the Hungarian 
authorities had brought Noel and Herta Field 



586 



Department of State Bulletin 



uihUm Tustoclj' to Budiipest wlien they clisuppcared 
in till' .summer of 1949. In addition to other wit- 
nesses, tlie Huiifxariuii autliorities made the Fiehls 
available to KoiiiUowski and Swiallo for iuterro- 
•jation. Noel and Ilerta Field were interro<;ated 
separately by Swiatlo at the AVII (State Secu- 
rity Authority) Buildiuf; in Hudapest whei-e the 
Fields were imprisoned. Noel Field stated to 
Swiatlo that he had not en<j;a<ied in esiiionafre but 
was fxatherinjr information for a Ijook about the 
countries of the so-called People's Democracy. 

In view of this information that Noel and ITerta 
Field were imprisoned anil interrogated in Hun- 
gary the United States Government requests im- 
mediate consular access to these American citizens 
and the conclusion of arrangements for their re- 
patriation at the earliest possible (hite. 



NOTE TO POLAND 

I'ress release 536 dated September 28 

Following is the text of a note delivered on 
September 28 to the Polish Minixtry of Foreign 
Affairs by the American Embassy at Warsaw 
concerning the arrest and imprisontnent of the 
American citizen, Hermann Field: 

The Embassy of the United States of America 
presents its compliments to the Ministry of For- 
eign Affairs and on instructions of the United 
States Government has the honor to refer to the 
Embassy's repeated lonnnunications to the Min- 
istry of Foreign Affairs concerning the welfare 
and whereabouts of the American citizen, Her- 
mann Field, who disappeared after entering tlie 
Wai-saw airpoi-t on August 22, 19i9. Bearing in 
mind that the Ministry has never given a satis- 
factory reply to tlie Emba.ssy's numerous repre- 
sentations in this matter, tlie United States Gov- 
ernment wishes to inform the Polish Government 
that the former Deputy Chief of Department Ten 
of the Polish Ministry of Public Security (MBP), 
Jozef Swiatlo has revealed the following infor- 
mation : 

TMiile Hermann Field was in Prague in August 
1949 he called Helena Syrkus, a well-known Polish 
architect, and Mela Granowska, a branch chief in 
the Personnel Section of the Ministry of Energy, 
at Warsaw and asked them to assist him in obtain- 
ing a visa for entry into Poland. These calls were 
reported to the Ministry of Public Security whose 



head, (ieiiei-al Stanislaw Radkiewicz, knew that 
the Hungarians were preparing the Rajk trial and 
that Noel Field would be inipiicalcd in (his trial. 
It was decided thai Hermann Field siioulil l)e per- 
mitted to come to Poland in order that he might 
be ex|)loited in this coniu-ction. After President 
Boleslaw Bierut had approved, Granowska tele- 
plioned Hermann Field at Prague and told iiini 
that slie would try to obtain a visa for him. (ira- 
nowska also said tiiat he should plan to stay with 
iier while he was in Poland. Hermann Field 
then arrived at Warsaw and was escorted by 
(iranowska to visit Helena Syrkus and Colonel 
Leon Gecow. 

Preparations were made to arrest Hermann 
Field when he went to the AVarsaw airjwrt to take 
a plane for Prague. Swiatlo was told by General 
Ronum Ronikowski, Deputy Minister in tlie Min- 
istry of Public Security, that President Bierut 
himself issued instructions for the arrest. The 
Chief of Intelligence of the Border Control Or- 
ganization (WOP) and the WOP officer in charge 
of the Warsaw airpoit were informed of tlie event 
to take place. 

Hernuinn Field was escorted to the airport by 
Helena Syrkus and Mela Granowska. Helena 
Syrkus left the airport first, followed by Granow- 
ska, and after the hitter's departure Hermann 
Field passed through customs. He then entered 
the waiting room where those about to leave are 
obliged to remain until the dejiarture of their 
plane. At this point he was called from the wait- 
ing room into the WOP office and arrested. The 
Ministry of Public Security had waited luitil this 
moment in order to pernut Hermann Field offi- 
cially to pass through customs and officially be 
listed as a passenger on the Czechoslovak Airlines 
l)lane bound for Prague. 

The arrest was made by Swiatlo, who invited 
Hermann Field to accompany him to a waiting car 
held in readiness by an assistant and a chauffeur. 
Hermami Field went with Swiatlo to the auto- 
mobile and, together with the assistant and chauf- 
feur, they di'ove to a place of detention at 
Miedzeszyn maintained by Department Ten of the 
Ministry of Public Security. 

It is known that Lieutenant Colonel Piasecki of 
that Department conducted a thorough interroga- 
tion of Hermann Field. Officials of the Ministry 
of Public Security recognized that no evidence was 
uncovered that he was a spy or had conducted 



Ocfofaer J 8, J 954 



587 



espionage on behalf of the American Government 
and concluded that he should be considered inno- 
cent and be protected. It is further known that 
Hermann Field continues to be in prison at 
JNIiedzeszyn, Poland. 

In view of the foregoing information the United 
States Government requests immediate consular 
access to this American citizen and the conclusion 
of arrangements for his repatriation at the earliest 
possible date. 



Agreement on Payment of Costs 
for Works at Niagara Falls 

Following are the texts of notes exchanged with 
Canada on Septemher 13 constituting an agree- 
ment for establishing procedures for the payment 
of expenditures on remedial works at Niagara 
Falls. ^ 



TEXT OF CANADIAN NOTE 

No. X-233 Ottawa, September 13, 195^, 

Sir : I have the honour to refer to recent conver- 
sations between representatives of our two Gov- 
ernments with respect to the construction of 
remedial works at Niagara Falls. As Article II 
of the Convention between the United States and 
Canada signed on February 27, 1950, concerning 
uses of the waters of the Niagara River provides 
that "the total cost of the works shall be divided 
equally between the United States of America and 
Canada", the Government of Canada and the 
Government of the United States consider it de- 
sirable that 50 per cent of the cost of the remedial 
works at Niagara Falls completed by or on behalf 
of the other Government shall be paid by or on 
behalf of such other Government as work pro- 
gresses. 

I have the honour to propose, therefore, that our 
two Governments agree as follows : 

(a) The Government of Canada and the Gov- 
ernment of the United States shall each bear 50 
per cent of the cost of the remedial works at Niag- 
ara Falls done by or on behalf of the other Gov- 
ermnent as work progi-esses. Monthly statements 

' For background, see Bulletin of June 1, 1953, p. 783; 
Aug. 10, 1953, p. 184 ; and June 21, 19&1, p. 954. 



of expenditures and payments to cover them in 
the funds of the country performing the work 
shall be exchanged between the agents of the two 
countries as indicated below. Adjustments will 
be made from time to time as required. 

(b) In order to facilitate administration, pay- 
ments by the United States Government shall be 
made directlj' to The Hydro-Electric Power Com- 
mission of Ontario, through the office of the Proj- 
ect Manager, Sir Adam Beck-Niagara Generating 
Station No. 2, Niagara Falls, Ontario, acting on 
behalf of the Government of the Province of On- 
tario, which, under an Agreement dated March 27, 
1950, made between the Government of Canada 
and the Government of Ontario, has assumed the 
obligations of the Government of Canada in re- 
spect of the Canadian share of the cost of the 
remedial works to be constructed pursuant to Ar- 
ticle II of the Niagara Treaty. Payments to the 
United States Government by The Hydro-Elec- 
tric Power Commission of Ontario shall be made 
to "The Treasurer of the United States" and be 
forwarded to the District Engineer, Butfalo, New 
York, District of the Corps of Engineers. In or- 
der to comply with the provisions of Article II of 
the Niagara Treat}', the receipts to be given for 
each payment made by The Hydro-Electric Power 
Commission of Ontario to the United States Corps 
of Engineers, and vice versa, shall constitute a full 
and sufficient discharge of the financial obliga- 
tions of the two Governments under the Treaty 
in respect of each such payment. In addition a 
final discharge of financial obligations shall be 
made between the Government of Canada and the 
Government of the United States when payments 
for all costs of the remedial works have been com- 
pleted. 

(c) Data in support of claims for reimburse- 
ments incurred for the period covered shall be 
made available by the Government of the United 
States through the District Office of the United 
States Corps of Engineers in Buffalo, New York, 
and by the Government of Canada through The 
Hydro-Electric Power Commission of Ontario, 
Office of the Project Manager, Sir Adam Beck- 
Niagara Generating Station No. 2, Niagara Falls, 
Ontario. 

(d) This arrangement shall remain in force un- 
til all payments have been completed and the final 
discharge of financial obligations referred to 
above has been made by an exchange of notes. It 
is understood that the arrangements herein set 
forth for the procedure respecting payment of 
amounts duo Caiuida are subject to the appropri- 
ation by the Congress of the funds required to pay 
such disbursements. 

If the Government of the United States is agree- 
able to the foregoing proposals, I suggest that the 
present Note and your reply to that effect should 



588 



Department of State Bulletin 



constitute an agreement between our two Gov- 
ernments which shall take effect this day. 

Accept, Sir, the renewed assurance of my highest 

consideration. 

L. B. Pearson 

Secretary of State 
for External Affairs 

Don C. Bliss, Esq., 
Charge d\iffaires a. ?'., 
Emba-t.ti/ of the United States 

>of America, 
Ottaxoa. 

TEXT OF U.S. NOTE 



No. 48 



Unfted States Embassy, 
Ottawa^ September 13, 195^.. 



Sir : I have the honor to acknowled<re receipt of 
your note No. X-2;33 of September 13, 19.'')4, in 
which you make proposals concerning the proce- 
dure to be followed in the payment of expendi- 
tures incurred by or on behalf of the respective 
Governments for work performed at Niagara Falls 
pursuant to Article II of the convention between 
the United States and Canada signed on February 
27, 1950 concerning the uses of the waters of the 
Niagara River. 

I have the honor to state that the Government 
of the United States concurs in these proposals and 
agrees that your note and the present reply shall 
constitute an agreement between our Governments 
establishing procedures to be followed with respect 
to disbursement of funds in payment for expendi- 
tures on construction of remedial works at Niagara 
Falls. 

Accept, Sir, the renewed assurances of my high- 
est consideration. 

Don C. Bliss 

'The Honorable 

Lester B. Pearson, 
Secretary of State for External Affairs, 
Ottawa. 

U.S. Delegations to 
International Conferences 

Conference on Education and Farming 

Tlie Department of State announced on October 
4 (press release 552) that the U.S. Government 
would be represented at the Technical Conference 



on Education and Small Scale Fanning in Rela- 
tion to Community Development, to be held at 
Port-of-Spain, Trinidad, October 6-15, 1954, by 
the following delegation : 

Delegates 

June Pranseth, Specialist for Rural Schools, Divi- 
sion of state aiKl Local Scliool Systems, OfHce of 
Kducatioii, Departiiieiit of Health, Education and 
Welfare 

Luis A. Suarez, Lender of the AK'rlciiltiiral Kconomlca 
and Cooperative Project, Federal Extension Service, 
University of Puerto Rico, Ulo I'iedras, V. R. 

Adviser 

Theo Lafayette Vaughan, Community Development Ad- 
viser, U.S.-FoA Mission to British Guiana, George- 
town, Britisli Guiana 

This Conference is being held under the joint 
sponsorship of the Caribbean Commission and the 
Ignited Nations Educational, Scientific and Cul- 
tural Organization (Unesco), and has been called 
as a i^esult of a recommendation by the Fifth Ses- 
sion of the "West Indian Conference (Jamaica 
1952). Its conclusions will form the basis for the 
documentation for the Sixth Session of the West 
Indian Conference (San Juan, May 1955). 

The interrelationship between the problems of 
small-scale farming and education will be dealt 
with in the following subjects: (a) the social and 
economic background of the problems; (b) the 
school in its relation to the community; (c) prob- 
lems of small-scale farming; and (d) education 
for community development. Field trips will be 
arranged by the Secretariat of the Caribbean Com- 
mission in consultation with the Government of 
Trinidad and Tobago, and evening seminars will 
be held on questions relating to agriculture and 
education. 



Current Treaty Actions 

MULTILATERAL 

Commodities — Wlieat 

Agreement revising and renewing the International wheat 
agreement of 1949 (TIAS 19.".7). Dated at Washington 
April ];{, lil.'i:?. Entered into force .luly l.'j, 1953 with 
respect to Parts 1, :{. 4, and 5; and August 1, 1953 with 
respect to Part 2. TIAS Tt^'d. 
AcrcpUmce drpositrd: I'.razil, September 13, 1954. 

Cultural Institutions and Objects 

Convention for the protection of cultural property in the 
event of armed conflict, and Regulations of Execution. 
Concluded at The Hague Jlay 14, 1954 ; open for signa- 



Ocfober 18, 1954 



589 



ture until December 31, 1954. Enters into force tliree 
mouths after deposit of five iustruments of ratification. 
Protocol for the protection of cultural property in the 
event of armed conflict. Concluded at The Hague May 
14, 1954 ; open for signature until December 31, 1954. 
Enters into force three months after deposit of five 
instruments of ratification. 

Signatures to convention: 

United States 

Andorra 

Australia 

Belgium (ad referendum )i 

Byelorussian Soviet Social- 
ist Republic 

China ' 

Cuba 

Czechoslovakia 

Ecuador ' 

El Salvador' 

France ' 

Federal Republic of Ger- 
many ' 

Greece' 

Hungary 

India ' 

Iran (ad referendum) ' 

Iraq ' 

Ireland 

Israel 

Labor 

Convention (No. 74) concerning the certification of able 
seamen. Adopte<l at Seattle June 29, 194G. Entered 
into force July 14, 1951 ; for the United States April 9, 
1954. TIAS 2949. 
Ratification regijitercd : Poland. April 13, 1954. 

Peace Treaties 

Treaty of peace with Japan. Signed at San Francisco 
September 8, 1951. Entered into force April 28, 1952. 
TIAS 2490. 
Ratification deposited: Guatemala, September 23, 1954. 

Postal Matters 

Universal postal convention, with final protocol, annex, 
regulations of execution, provisions regarding airmail 
and final protocol thereto. Signed at Brus.sels July 11, 
1952. Entered into force July 1, 1953. TIAS 2800. 
Ratification deposited: Hungary, September 3, 1954.^ 

Trieste 

Memorandum of understanding .between the Governments 
of Italy, the United Kingdom, the United State.s, and 
Yugoslavia regarding the Free Territory of Trieste, 



Italy ' 

Libya ' 

Luxembourg ' 

Monaco ' 

Netherlands ' 

Nicaragua ' 

Norway (ad referendum) ' 

Philippines 

Poland 

Portugal 

Rumania 

San Marino' 

Spain 

Syria ' 

Ukrainian Soviet Socialist 

Republic 
Union of Soviet Socialist 

Republics 
Uruguay ' 
Yugoslavia ' 



' Also signed protocol. 

" Ratification confirmed statement made at time of sig- 
nature of Final Protocol. 



with two annexes. Initialled at London October 5, 1954. 
Entered into forc-e October 5, 1954. 

War 

Geneva convention relative to treatment of prisoners of 

war ; 
Geneva convention for amelioration of the condition of 

the wounded and sick in armed forces in the field ; 
Geneva convention for amelioration of the condition of 

wounded, sick and shipwrecked members of armed 

forces at sea ; 
Geneva convention relative to protection of civilian per- 
sons in time of war. 
Dated at Geneva August 12. 1949. Eiitered into force 

October 21, 1950.' 

Adherence deposited: Germany, September 3, 1954. 



BILATERAL 

Canada 

Agreement relating to the payment of costs of remedial 
work at Niagara Falls pursuant to Article II of the 
treaty of February 27, 1950 (TIAS 2130) relating to 
uses of waters of the Niagara River. Effected by ex- 
change of notes at Ottawa September 13, 1954. Entered 
into force September 13, 1954. 

El Salvador 

Agreement providing for a United States Army Mission 
to El Salvador. Signed at San Salvador September 23, 
1954. Will enter into force on date the United States 
receives written notification that the agreement is ap- 
proved by El Salvador. 

Mexico 

Agreement approving memoranda of understanding by 
the Mexico-United States Commission for prevention of 
foot-and-mouth disea.se to provide financing for Com- 
mission oi)erations. Effected by exchange of notes at 
Washington December 12, 1953 and July 30, 1954. En- 
tered into force July 30, 1954. 

Philippines 

Agreement amending the agreement of November 18 and 
December 13, 1952 (TIAS 2931), as amended, relatiug 
to the recruitment of Philippine citizens for voluntary 
enlistment into the United States Navy. Effected by 
exchange of notes at Manila September 2, 1954. En- 
tered into force September 2, 1954. 

United Kingdom 

Agreement relating to claims for compensation arising 
from the use of the practice bombing range near Cux- 
haven. Germany. Exchange of letters at Bonn July 15 
and 21, 1954. Entered into force July 21, 1954. 



' Not in force for the United States. 



590 



Department o( State Bulletin 



'October 18, 1954 



I n d 



e X 



Vol. XXXI, No. 799 



American PrinciplM. The Concept of Sclf-Detprnilnatlon In 

Ainiiiran TluuiKlit (Bnrboiir) .1711 

Caniida. AKroemcnt on Pnyniciit nf (\)»t» for WorkK ill 

Nlaiinra Kiills (text of notes) 588 

Claims and Property. Presentation of Claim Aenlnst Soviet 
tioverunient for Destruction of B-20 off IlolvknUlo In 
liiri'J rtextof note) .ITl) 

Europe 

The Defense of Europe : A Progress Report (Gruenther) .liii 

European Command Reports on Offshore Procurement Pro- 

Kram (Cook) .le" 

Far East. Problems In the I'lir Kast (DrumrlKht) . . . 571 

Foreisn Service. Secretary Dulles Reconvenes Public Com- 
mittee on Personnel 570 

Hunsarr. U.S. Request.i Repatriation of Noel. Hertn. anil 

Hermann Kielil (text of notes) 581; 

International Organizations and Meetinffs. Conference on 

Kducntlon and Farming 5S0 

Mutual Security 

The Defense of Europe : A Progress Report (Gruenther) 5(i^ 
European Command Reports on Offshore Procurement Pro- 
gram (Cook) 567 

North Atlantic Treaty Organization 

The Defense of Europe : A Progress Report (Gruenther ) 5G2 

Euroiiean Command Reports on Offshore Procurement Pro- 
gram (Cook) 567 

Poland. U.S. Requests Repatriation of Noel, Herfa, and 

Hermann Field i text nf notes) 586 

Protection of Nationals and Property. U.S. Requests Repa- 
triation of Noel, Herta. and Hermann Field (text of 
notes) 586 

State, Department of. Herbert Hoover, .Ir., Assumes Office 

as Under Secretary 561 

Treaty Information 

Current Actions 589 

Four-Power Agreement on Trieste (texts of statements and 

corresiJoudence) 555 

Trieste, Free Territory of. Four-Power Agreement on 

Trieste (texts of statements and correspondence) . . 555 

U.S.S.R. Presentation of Claim Against Soviet Govern- 
ment for Destruction of B-29 off Hokkaido in 1952 
(text of note) 579 

Name Index 

Barbour. Walworth 576 

Bliss, Don C 589 

Brosio. Manllo 555 

Cook, Orval R 567 



Driimrlght, Everett V 571 

Dulles, Secretary 550, 561, 570 

Field. Hermann S86 

Field, Herta 586 

Field, Noel 580 

(irneiithiT. .\lfred M 602 

Harrison, Geoffrey W 555 

Hoover, Herbert, Jr 601 

Pearson. I,. B 688 

Thompson, Llewellyn E 555 



Check List of Department of State 
Press Releases: October 4 10 

Releases may be obtained from the News Division, 

Department of State, Wasliiugton 2."), D.f". 

I'ru.ss releases Lssuetl prior to Oct. 4 wliicli appear 
ill this issue of the Bullkiin are Nos. .'527 of Sept. 
2.".. .ISS and 53(5 of Sept. 2S, and 540 of Oct. 2. 
Subject 

Dulles : Return from Loudon Confer- 
ence. (See Bulletin of Oct. 11.) 

Hoover sworn in as Under Secretary. 

Hoover statement. 

Wailes : SweariuR-in ceremony. 

Wriston Committee reconvened. 

U.S. delegation to farming conference. 

Dulles : Statement on Trieste agree- 
ment. 

Agreement on Trieste. 

Hill : Swearing-in ceremony. 

Dulles : Message to Martino. 

Dulles : Message to Popovic. 

Program for MacDoniild visit. 

U.S. delegation to Pan American Sani- 
tary Conference. 

Robertson : Death of Ozalii. 

Cale : Economic situation in Latin 
America. 

Foreign Service memorial to be re- 
dedicated. 

Key : World security and Who. 

Gallman : Swearing-in ceremony. 

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tHeld for a later issue of the Btn.iJniN. 



No. 


Date 


547 


10/4 


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10/4 


549 


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551 


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552 


10/4 


553 


10/5 


554 


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•555 


10/5 


5.j6 


10/0 


557 


10/6 


•558 


10/6 


t559 


10/6 


•500 


10/6 


t5Gl 


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•502 


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t5G3 


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•504 


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1506 


10/9 



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Intervention of International 
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Nearly 100 pages of official statements and documents tell the 
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Vol. XXXI, No. 800 
October 25, 1954 




THE COIMMON DESTINY OF THE AMERICAS • by 

Ambassador John C Dreier 595 

SOME ASPECTS OF THE PRESENT ECONOMIC 
SITUATION IN LATIN AMERICA • by Edxcard 
G. Cale 600 

NUCLEAR PHYSICS, A TRIUMPH OF MAN'S 

MIND • by Ambassador James B. Conant 607 

WORLD SECURITY AND THE WORLD HEALTH 

ORGANIZATION • by Assistant Secretary Key 616 

U.S. VIEWS ON SOVIET DISARMAMENT PRO- 
POSAL • Statements by Ambassador Henry Cabot Lodge, 
Jr., and Ambassador James J. Wadsivorth 619 



For index see inside back cover 



Boston Public Library 
Superintendent of Documents 

NOV 2 4 1954 




M. *^.^*. bulletin 



Vol. XXXI, No. 800 • Pcblication 5637 



Oaoher 25, 1954 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 25, D.C. 

Price: 

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The printing of this publication has been 
approved by tne Director of the Bureau of 
the Budget (January 22, 1952). 

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



The Department of State BULLETIN, 
a iceekly publication issued by the 
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public and interested agencies of 
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developments in the field of foreign 
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xfhich the United States is or may 
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The Common Destiny of the Americas 



hy John C. Dreier 

UJS. Representative to the Council of the Organization of American States * 



It is particularly suitable that the Miami cele- 
bration of Columbus Day pay special attention to 
the common bond which the United States shares 
with the peoples of the other American Republics 
on this "birthday" of our continent. 

San Salvador, or Watlings Island — the first 
piece of land touched by the discoverer early in the 
moonlit morning hours of October 12, 1492 — lies 
some 400 miles to the southeast of here. Had it 
not been for a flock of birds, Columbus' course 
might have led him ultimately to the shores of 
Florida. We might then be celebrating this eve- 
ning on the spot which the Admiral of the Ocean 
Seas had touched himself. 

A few days before the discovery — up to October 
7, to be exact — Columbus was following a west- 
ward course, which in fact aimed almost directly 
at Miami. The records tell us that on that date 
he saw a great flight of birds heading toward the 
southwest — no doubt one of the great annual fall 
migrations with which we are familiar today. 
Columbus shifted his course halfway to the south- 
west on the theory that the birds must be headed 
for land. If he had not done so, at least one 
historian who is also a mariner of note maintains, 
Columbus would probabh' have passed through 
the northern Bahamas, entered the Gulf Stream, 
and been carried up the Florida east coast. 

Had Columbus' powerful imagination and 
vision extended to a comprehension of the charms 
of this part of the world, I am sure he would have 
disregarded the sign of the flying birds. How- 
ever, as thankful citizens of this New World, 



' Address made before the Miami Citizens Committee 
for tie Inter-American Observance of Columbus Day, at 
Miami, Fla., on Oct. 11 (press release 565). 



we may forgive this lapse in his otherwise master- 
ful genius and celebrate his coming as though he 
had in fact set foot on these golden shores. 

This little incident of the birds and its possible 
effect upon history is not only an amusing tale. 
It seems to me also to represent the many vagaries, 
uncertainties, errors, arguments, and difficulties 
with which Columbus and his venture were sur- 
rounded. 

Over the years, as he sailed the seas of the east- 
ern Atlantic and studied the calculations of the 
leading geographers of his own time and of cen- 
turies past, Columbus formulated a great plan 
which he called the "Enterprise of the Indies." 
Popular belief to the contrary, educated men in 
Columbus' day recognized that the world was 
round. But, while to others this was largely a 
matter for academic discussion, to Columbus it be- 
came a challenge to action. Why not take advan- 
tage of this fact, he argued, and sail across the sea 
to the other side of the world where inevitably one 
would come upon Cipangu (Japan) and the terri- 
tories of the Great Khan ? Thus would be opened 
up a new trade route to the riches of the Indies, as 
the whole of Asia was at that time called. And in 
the process of sailing this hitherto unknown por- 
tion of the sea, who knows, he asked, whether one 
might not encounter an island or two which would 
make a convenient stopping place before the Indies 
were reached, and of which one would, of course, 
become the royal governor? 

Like many another man with a project to put 
over, Columbus first had to overcome the experts. 
For years the eminent scholars whose advice was 
sought by the Spanish crown declared that the 
Enterprise of the Indies was impractical and based 
upon false calculations. And the strange thing 



Ocfofaer 25, J 954 



595 



about it is that they apparently were right — or at 
least less incorrect than Columbus. They de- 
clared his idea of a narrow sea between Spain 
and China or Japan was an luiderestimation ; that 
the ocean was really much greater than Colmnbus 
figured ; and tliat the opposite shore was beyond 
the range of contemporary sailing vessels. Little 
did they know how right they were — but, of course, 
what neither they nor Columbus suspected was 
that America lay on the way. 

Colmnbus finally appeared to have won the 
acquiescence if not the support of the experts and 
then had to wrestle with politics. After years of 
waiting, much of it spent in conditions of great 
poverty, he received his hearing before Queen 
Isabella and was turned down. Then there in- 
tervened one of those turns of fate of which we 
have no explainable cause. On his way from the 
Spanish court toward France, where he hoped to 
receive a better response, he was overtaken and 
ordered back. The Queen had changed her mind 
and determined to set the Enterprise of the Indies 
afloat. 

Then, the sliips made ready, came the voyage 
itself. Farther west sailed the caravels than any 
man had ever sailed before ; mythical islands ap- 
peared and disappeared as false landfalls were 
made. Having gone far beyond his estimated 
distance, Colmnbus himself believed he had missed 
Japan. 

Then came the increasing impatience of the 
men cooped up on these tiny vessels — more false 
landfalls — the command "Adelante — sail on" — 
the final promise to turn back in three days more 
if no land were sighted ; and that night the glimpse 
of a light (was it real, or merely the last false 
illusion of success?) and then at 2:00 a. m. on 
October 12 the cry of "tierra ! tierra !," when not a 
new route to Asia but a New World came into 
being. 

Through all these incidents reflecting the limi- 
tations of human mind and body there emerges 
as the responsible factor of success the great per- 
sonality and character of Columbus. Fired with 
a vision, deep in the faith that he would succeed, 
his inspired pursuit of a grandly conceived, 
though not entirely accurate, goal led to a tri- 
umphant and world-shaking reality. 

And so today we celebrate the 462d anniversary 
of the discovery. We honor Columbus, the man, 
whose faith and courage brought into being a 



New World and whose personal triumph provided 
a bridge from the dying ^liddle Ages to the new 
era of hope, discover}', and enlightenment which 
followed thereafter. 

The discovery is, of course, the first great his- 
torical fact which all the peoples of North and 
South America share in common. Through it, 
all of America is linked to the motherland of West- 
ern Europe and its civilization. 

Following Columbus, as decades and centuries 
passed, a great wave of population moved in in- 
creasing numbers across the Atlantic. Like Co- 
lumbus himself, the settlers of America were 
motivated by a number of different impulses — 
religious faith and ambition for material gain 
being prominent among them. But of increasing 
importance to those who came to the New World 
was a desire for freedom to work out a way of 
life of their own choosing. 

Continental Unity 

Thus, after some three centuries of colonization, 
America began to become conscious of a character 
of its own. Whereas it had been — except for con- 
quered native populations — dependent upon Eu- 
rope culturally, economically, and politically, by 
the end of the 18th and early 19th centuries 
America became conscious of its differences from 
Europe. This sense of difi'erence was soon trans- 
lated into political independence. 

The second great historical bond that unites the 
Americas is, therefore, the achievement of their 
independence. Through this act the European 
settlements of colonial times became in fact the 
New World of modern times. 

The consciousness of a common destiny as na- 
tions of a New World has been for 150 years one 
of the main ingredients of the moi'tar which has 
bound our countries together. Americans of all 
nations have shared the opportunity which the 
New World has been given to get rid of the ri- 
valries and enmities which had led European 
countries to repeated warfare and to establish on 
this continent a community of nations that could 
live in peaceful cooperation with each other. 

Americans, North and South, have sought their 
destiny in creating a society of free men, based 
upon flie recognition of the dignity and worth of 
tlie individual human being, casting off the rigid 
class distinctions and hampering traditions which 
characterized Old World society. A richer life, 



596 



Department of Stale Bulletin 



measured not only in material but in cultural and 
spiritual tei-ms, became the goal which Americans 
have by common consent set themselves to achieve. 

It was this spirit of Americanism which led to 
the gradual development of what we have called 
the inter-American system and its instrument, the 
Organization of ^Imerican States. It was a sense 
of relationship with Latin America, as part of a 
greater America, that led to the adoption of the 
Monroe Doctrine in 1823. A similar continental 
concept inspire<l the ambitions of the great libera- 
toi-s of Latin America. Simon Bolivar, when he 
called a conference in Panama in 182G. envisaged a 
federation of Latin American countries as a step 
toward a united continent including the United 
States. 

Again in 1889 it was a sense of continental miity 
which led the Government of the United St-ates to 
call the first Pan .American Conference, thus set- 
ting in motion the uninterrupted series of confer- 
ences which form the main consultative body of 
the Organization of American States, the tenth of 
which was held this year in Caracas, Venezuela. 

When the Xinth Inter- American Conference 
met in Bogota in 1948 to draft a new constitutional 
document, the representatives of the 21 Republics 
set forth the purposes and principles of tlie Or- 
ganization. These purposes may be summarized 
under two main headings : first, the maintenance 
of the peace and security of the Americas to pre- 
vent aggression from any source and protect the 
freedom and sovereignty of every member state ; 
and second, cooperation in working out common 
problems in order to promote the economic, social, 
and cultural welfare of all peoples of these 21 
countries. 

"Enterprise of the Americas" 

Paraphrasing Columbus' original proposal, we 
maj' call this common effort of American nations 
the "Enterprise of the Americas." 

We can point with pride to past achievements in 
regard to both the great purposes to which our 
enterprise is dedicated. But, like the Enterprise 
of the Indies, our Enterprise of the Americas has 
encountered many difficulties and still faces prob- 
lems of a future not yet clear. 

In the field of peace and security we can take 
justifiable pride in the growing sense of mutual 
responsibility that has developed over the past 100 
years. When the United States issued the Monroe 



Doctrine in 1823, we expressed our unilateral con- 
cern over any possible efforts to reestablish colonies 
or to reintroduce European political systems on 
this continent. By the early part of this century 
we had declared our intention to act in situations 
where intervention by a non-American power in 
the affairs of other American countries was 
threateneil in order to forestall such intervention. 
But gradually this assumption by one country of a 
unilateral responsibility fur the maintenance of 
peace and security was converted into an assump- 
tion by all 21 countries of a common responsibility. 
This great development was reflected in the prin- 
ciple adopted at the Conference of Chapultepec in 
Mexico in 1945, that an attack against one Ameri- 
can State would be considered an attack against all. 

This principle was incorporated in the Treaty 
of Rio de Janeiro, which provides for mutual as- 
sistance among the American States in the event 
of an armed attack and consultation in regard to 
any other form of aggression. The success of the 
regional machinery established in the Treaty of 
Rio de Janeiro for the prevention of aggression 
has been demonstrated on more than one occasion. 
As a companion piece to this treaty, there has also 
been drafted another agreement setting forth 
methods for the peaceful solution of international 
disputes among the American States. Although 
this second treaty has not yet reached the jwint of 
approval by a majority of the American Repub- 
lics, consideration is now being given to the de- 
sirability of revising the treaty to remove some of 
the obstacles which have impeded ratification. In 
any event the principles, procedures, and practice 
of peaceful settlement are so firmly established 
among the American States that they constitute 
one of the basic assumptions of our international 
code of conduct. 

Yet we cannot by any means view with complete 
equanimity the present situation in this continent 
with respect to the maintenance of peace and secu- 
rity. For the main danger which America faces 
today is, as dangers so often are, of a new sort — 
the danger of aggreasion by subversion of political 
institutions in the interests of a foreign power. 
We have a new kind of foe to cope with, and new 
and more effective means of defense must be 
found. 

Caracas Conference 

An important beginning to devise a stronger 
system of peace and security in the face of this 



Ocfofaer 25, J 954 



597 



danger was made at the Caracas Conference held 
last March. There, interpreting the principle of 
unitj' in defense against aggression, the American 
States declared that the domination or control of 
political institutions of an American State by 
the international Communist movement, extend- 
ing to this hemisphere the political system of an 
extracontinental power, would constitute a threat 
to the sovereignty and political independence of 
the American States, endangering the peace of 
the Americas, and would call for a Meeting of 
Consultation to consider appropriate action.^ It 
was on the basis of this principle that the Ameri- 
can States last June, following some sensational 
developments in the Eepublic of Guatemala, called 
for a Meeting of Consultation to consider the sit- 
uation created by Communist infiltration in that 
country. The Foreign Ministers were about to 
meet when a successful revolution in Guatemala 
overthrew the Communist-penetrated government 
there. 

The outcome of the Guatemalan case should 
not, however, lead us to think either that the gen- 
eral problem has been eliminated from the Amer- 
icas or that the means of protecting American 
political institutions have been clearly developed. 
More constructive thought is needed to understand 
the nature of the Communist threat to America 
and methods whereby unity of America may be 
evoked in defense against it. Certainly vigilance 
and a readiness to expose and control subversive 
activities are required. The role of international 
organizations in this respect must be more clearly 
thought out. 

Moreover, no one viewing the tradition of 
America can feel satisfied with negative measures 
alone. If we wish to strengthen our continent 
against the violence and bloodshed which in re- 
cent years have bi'ought misery and subjection to 
other parts of the world, we must build in the 
hearts of men. And that requires the clarification 
and dramatization of positive American goals 
that will respond to the political, economic, and 
cultural aspirations of the peoples of America. No 
program for the security of our American nations 
can succeed unless the peoples of America are 
given at least a moderate assurance that through 
inter-American unity and cooperation, construc- 
tive and positive gains will be made in improving 
the life of the common man. 



' Bulletin of Apr. 26, 1954, p. 638. 
598 



That brings us to the other great purpose of om- 
Enterprise of the Americas — the promotion of the 
economic, social, and cultural welfare of our peo- | 
pie. Here too we maj' point with pride to impor- 
tant developments in which the cooperation of 
American peoples has played a vital role. 

Our trade relations reflect the growing unity in 
inter-American affairs. United States trade with 
Latin America has increased from $1.7 billion in 
1938 to almost $7 billion in 1952. Today Latin 
America provides about one-third of our total im- 
ports and takes from a fourth to a fifth of our ex- 
ports. Latin American countries increasingly 
look to the United States as a market for their 
raw materials and as a source of manufactured 
goods and capital equipment. The Latin Ameri- 
can area is the largest single area of United States 
foreign investments. 

Moreover, progress in economic and social lines 
in Latin America has been outstanding, showing 
rates of growth which compare favorably with 
economically more advanced areas. 

For this progress, inter- American cooperation 
may take a considerable share of the credit. The 
program of reciprocal trade agreements, whereby 
since the 1930's tariffs have been reduced as a 
measure of promoting international trade, has 
been of great benefit to inter-American trade. 
Private investments which have formed the basis 
of most economic development in Latin America 
have been supplemented by special intergovern- 
mental arrangements. Through the Export-Im- 
port Bank and the International Bank for Recon- 
struction and Development, loans to Latin Amer- 
ica since World War II have been made at a rate 
of about $100 million per year. The fact that 
these loans have been made for sound economic 
projects is evidenced by the satisfactory rate of 
repayment. 

Technical Assistance Program 

Finally, a remarkable and interesting technical 
assistance program has been developed among the 
American Republics which is contributing to the 
economic and social development of the entire 
area. In the fields of agriculture, health and sani- 
tation, education, and housing, a wide interchange 
of technical knowledge is being pi'omoted. Proj- 
ects are being undertaken to apply this technical 
know-how to the solution of specific problems in 
individual countries. These activities are being 

Department of State Bulletin 



carried out not only through bilateral arrange- 
ments between the United States and other Ameri- 
can countries but also through the agency of the 
Organization of American States. 

For example, the Pan American Sanitaiy Bu- 
reau, the oldest international health organization 
in the world, is carrying on a continent-wido cam- 
paign to exterminate the carrier of yellow fever 
in settled areas, as well as conducting a number of 
other dramatic and significant health programs in 
cooperation with national health agencies. The 
Inter-American Institute of Agricultural Sciences 
is developing basic scientific and sociological in- 
formation which can increasingly contribute to 
the improvement of problems of agriculture and 
rural life throughout Central and South America. 

Thus again we may point with pride to achieve- 
ment in this field, and yet at the same time we must 
also look ahead to the existence of great and un- 
solved problems which challenge the future of 
inter-American unity and cooperation. For great 
as is the progress in social and economic fields in 
Latin America, the demand for progress is in- 
creasing at an equal if not a faster rate. Wlien 
people can see, as a result of motion pictures, 
travel, and other media of mass information, the 
higher standards of living to which modern tech- 
nology gives access, they become impatient to get 
there. The long, slow process through which our 
own country went in the 19th centurj^ no longer 
satisfies the urgent demands of peoples who are 
just now starting that long climb to a better way 
of life. 

Moreover, as modern technology has altered the 
economic basis of life, taking people away from 
the traditional rural society and developing the 
proletarian life of the cities, people have become 
more dependent upon the course of worldwide 
economic events. The outbreak of fighting in Ko- 
rea, for example, had an immediate and direct ef- 
fect upon the life of the Indian miner on the Bo- 
livian Altiplano. The suddenly increased demand 
for tin sent prices skyrocketing. Then, a few 
years later, the demand fell, and down crashed 
prices too, thus knocking to pieces the inflated eco- 
nomic structure which had been created 2 or 3 
years before. 

It is no wonder that a principal goal which the 
Latin American countries are now seeking in the 
field of economic relations is for a greater stabil- 
ity in their trade with us — particularly in their 



ability to sell their copper, tin, coffee, petroleum, 
and other essential goods to us at what they would 
consider a fair rate of return. 

This is but one example illustrating the fact 
that now more than ever the basic problems of this 
continent require international solutions. By this 
I do not in any way mean to disregard the equally 
powerful fact that international cooperation can 
help only those nations that begin by doing all 
within their power to help themselves. 

The ultimate fact, underlining the need for 
international action in regard to these problems 
that so directly affect human life in this continent, 
is that a failure to solve them cannot avoid inter- 
national repercussions. If the people of any 
American country is delivered into the hands of 
destructive demagogues and extremists, we shall 
all be the losers. If either communism on the one 
hand or fanatic nationalism on the other — or the 
two working together — should ever capture any 
considerable portion of the population of this con- 
tinent, the possibility of our ever achieving the 
high purposes of inter-American cooperation 
would indeed be dim. For in this age of explosive 
forces we can hope to maintain our freedom and 
civilization only if rational courses of human con- 
duct win out. All of us — Xorth Americans and 
Latin Americans — have a stake, therefore, in 
making our Enterprise of the Americas work. 
This means enlarging the area of common thought 
and eti'ort towards achieving on this continent a 
greater measure of freedom, security, and well- 
being. 



Belief in the Future 

With respect to all the problems which face us 
in inter-American cooperation today, perhaps 
what is needed as much as anything is a rededica- 
tion to that great American spirit which came in- 
to being 150 years ago with the achievement of in- 
dependence and which inspired men to a faith in 
their destiny as inhabitants of a new world en- 
dowed with a new hope. 

For a century and a half we have gone forward 
with a firm belief in our future and in our capacity 
to create in this New World a better life for hu- 
manity. Great things have been done. A great 
deal remains to be done if we want to have on this 
continent a strong, united, and confident America. 
There are too many signs today that that great 
belief in our future has been shaken, and that con- 



Ocfober 25, 7954 



599 



fidence in ourselves and in our fellow Americans 
has been soured ■with suspicion. Fear and hatred 
have made inroads where courage and good will 
should prevail. 

Too often we hear it suggested that we have gone 
as far as we can go in international cooperation; 
that we should even turn back from our efforts to 
seek a greater unity among nations. Perhaps, 
after all, our Enterprise of the Americas is just 
another crackpot idea. 

Surely we cannot lend ourselves to such counsels. 
They reflect the same atmosphere of cynicism and 
doubt that characterized tlie end of the 15th cen- 
tury when Columbus formulated his Enterprise 
of the Indies. It is refreshing to recall that among 
various other negative arguments advanced by the 



most learned scholars of that time, in response to 
Columbus" proposals, was the observation that in 
that advanced era of civilization, so long after 
the creation of the world, it was unlikely that there 
were anywhere any more lands of any value to be 
discovered ! 

Two yeai"s later, driven by his inspired faith and 
determination, Columbus came upon a New World. 

As we, the beneficiaries of his greatness, look 
forward to the possibilities of building a stronger 
and more vigorous America, let us recall as most 
applicable to our owji times the words of Coliun- 
bus in his letter reporting the discovery : "The 
eternal Almighty God, our Lord, it is Wlio gives 
to all who walk in His way victory over things 
apparently impossible." 



Some Aspects of the Present Economic Situation in Latin America 



iy Edward G. Cole 

Director, Office of Regional American Affairs ^ 



I come to speak to you on the subject of some 
aspects of the present economic situation in Latin 
America with a very great appreciation of the 
complexity of the subject matter and of my own 
limitations for dealing with them. 

In fact, it is difficult and sometimes erroneous 
to think in terms of Latin America as a unit, since 
there is great diversity among the countries of 
this area, which occupies almost one-fifth of the 
world's land area. For example, the countries 
vary greatly in size, ranging from Brazil, which 
is about as large as the United States plus an 
additional Texas, to Haiti, which is about the size 
of the State of Maryland. Differences in race 
between the various countries are also often very 
marked. In some countries, such as Mexico, 
Guatemala, Peru, and Bolivia, Indian blood pre- 



' Address made at a conference on "Latin America and 
Inter-American Relations" at tlie University of Virginia, 
Charlottesville, Va., on Oct. 7 (press release 561). 



dominates ; in others, such as Argentina and Uru- 
guay, the population is largely of European 
origin. In certain regions, such as northeastern 
Brazil and the coastal fringes of the Caribbean, 
considerable Negro blood is to be found. There 
are also great differences between many of the 
countries, economicall}'. For example, there are 
many ways in which economic conditions in such 
countries as Argentina, Chile, and Cuba are more 
nearly like those in the United States than those 
in such other Latin American countries as Haiti, 
Bolivia, and Paraguay. Economic conditions 
between different social or economic classes within 
a given country vary even more widely. An ac- 
curate description of Latin America is possible 
only when these differences are all included. 
There is not time in a limited discussion to do 
tliis, but I hope that you will remember that there 
are many exceptions to the generalizations that 
I will have to make in order to cover the topic 
with which I am dealing. 



600 



Department of State Bulletin 



Natural Resources 

Tlie jri^ncrnlization with which I shall begin 
is that Latin America is an area of large un- 
utilized natural resources. In general, the coun- 
tries of the area have the potential in terms of 
natural resources butli to build a prosperous home 
industry and agriculture and to expand foreign 
trade. Some of the countries are exceedingly 
well endowed. For example, Venezuela has large 
deposits of petroleum and iron; Colombia has 
rich reserves of coal and iron; Peru has a wide 
variety of minerals; Brazil has a very wide 
range of natural resources generally, although 
explorations so far made have not disclosed the 
existence of large deposits of coal or petroleum; 
and Argentina has an abundance of some of the 
finest agricultural lands in the world. Explora- 
tion has so far not been carried far enough fully 
to indicate the extent of the area's natural wealth. 

Despite an abundance of natural wealth in most 
of the countries of the area, especially in relation 
to present population, tliere are a number of 
handicaps that must be overcome in developing 
them. In terms of present technology and on the 
basis of presently known resources, Latin Amer- 
ica is not as well endowed as the United States 
to meet the basic needs of an industrial society. 

To a large extent, the physical environment 
of Latin Ameica is difficult and offers obstacles 
to economic development. For example, the 
Andean mountain range, which lies athwart the 
western part of South America, constitutes a 
formidable barrier to transportation and com- 
munication. Heat and humidity in large por- 
tions of the area are also unfavorable to optimum 
production. Land and mineral resources in a 
considerable number of the countries are limited. 
Given its vast area, however, which is some two 
and one -half times that of the United States 
and its known resources, it should be able to af- 
ford its present population a much higher stand- 
ard of living than it now enjoys. However, since 
it also has one of the most rapidly increasing 
populations of any major area of the world, it 
faces a serious problem in increasing production 
rapidly enough to increase per capita income. 
For example, it is estimated, on the basis of 
present trends, that the population of Latin 
America will be around 500 million by the year 
2,000. At present, its population is slightly in 
excess of that of the United States. If these 



estimates and similar estimates for the United 
States and Canada should prove correct, how- 
evei-, the population of Latin America will be 
more than twice that of the United States and 
Canada combined by the close of the present 
century. 

Increased Output 

A second generalization that may be made re- 
garding Latin America is that during the past 
decade and a half it has increased its economic 
productivity at a considerably more rapid rate 
than the rate at which its population has been in- 
creasing. The following data, which are largely 
taken from a recent report by the United Nations 
Economic Commission for Latin America, are in- 
dicative of the really remarkable progress which 
Latin America has made since the Second World 
War : Population is increasing in Latin America, 
on the average, at a rate of from 2 to 2i/^ percent 
per annum. But output of goods and services has 
been substantially in excess of population growth. 
The per capita rate of increase in the volume of 
goods and services available to Latin America 
since the war has been around 3i^ percent per 
year. Living standards have been raised appre- 
ciably as a result, but not all of the increased out- 
put has gone into increased consiunption. 

Economic development requires that capital be 
accumulated; and capital accumulation in Latin 
America since the close of the Second World War 
has been exceptionally intense, the investment rate 
approximating 16 percent of total national in- 
come. This compares favorably with the record 
of even highly industrialized countries. It has 
been estimated that more than 90 percent of the 
capital accumulated during the period was sup- 
plied from Latin America's own savings. The 
stock of capital per worker has increased on the 
average from $1,177 in 1945 to $1,409 in 1952, 
an increase of more than 25 percent. The out- 
standing feature of this development has been the 
expansion in manufactures. The value of manu- 
factures increased from $6.8 billion in 1945 to $11.4 
billion in 1952. This is an increase of better than 
70 percent in 7 years. The value of manufactures 
surpassed the value of agricultural output in 
Latin America in 1947 for the first time and has 
outranked it ever since. 

Notwithstanding this rapid rate of progress, 
there is still a great deal of popular dissatisfaction 



Ocfober 25, 7954 



601 



with their present economic conditions among the 
governments and people of Latin America. Fur- 
thermore, it appears that the amount of this dis- 
satisfaction is at least as great, if not greater, in 
those areas where there has been the greatest eco- 
nomic and social change. There are apparently 
many factors which heip to account for this situ- 
ation. First, average per capita income in Latin 
America is still very low in comparison with that 
of the more highly industrialized countries. The 
situation varies greatly as between countries ; but, 
in all, the lot of the major part of the population 
is poor. In Latin America as a whole, per capita 
income is probably not more than % of per capita 
income in the United States. Health conditions 
in many areas may be considered poor by accepted 
standards. For example, it is estimated that the 
death rate in most of the Latin American coun- 
tries is in excess of 100 per 1,000 live births. The 
comparative figure for the United States is 28 or 29 
per 1,000. The average diet in a number of the 
countries is less than the diet which has generally 
been considered by nutritional experts as the 
minimum necessary to maintain health and 
efficiency. 

The need for improved education in Latin 
America is also great. Many of the countrias 
have illiteracy rates exceeding 50 percent, and 
few of them have effectively orientated their edu- 
cational systems to the requirements of a modern 
industrial civilization. 

Transportation facilities are also inadequate. 
Latin America has about 1/3 the railroad mileage 
of the United States and fewer motor vehicles than 
the State of New Jersey. Lack of f amti-to-market 
roads handicaps the movement of food and other 
agricultural products. 

Notwithstanding the low average level of in- 
come in Latin America and the unsatisfactory 
health, educational, and other conditions that go 
with it, there are in virtually all of the Latin 
American countries a limited group of very well- 
to-do people. Their standards of living, health, 
and comfort are as good as those enjoyed by our 
wealthier citizens. The contrast between the con- 
dition of the few and that of the masses of the 
people is accordingly very marked. Part of the 
dissatisfaction with economic conditions is there- 
fore undoubtedly the result of the fact that the 
major portion of the population has not come 
anywhere near achieving the average standard of 



living of the more highly industrialized countries 
or of their own well-to-do classes. It is only nat- 
ural for them to wish to achieve a greater rate of 
progress. 

Furthermore, Latin American officials fear that 
the outlook for maintaining even the present rate 
of progress is not especially good, owing to a de- 
cline in the demand for, and falling prices of, a 
considerable number of their export products, such 
as tin, copper, and lead and zinc during the past 
2 years. Our Latin American neighbors are un- 
derstandably concerned over the situation. 

Inflation 

There are other reasons, however, why there is 
dissatisfaction among the masses of the people. 
One is that inflation in many countries is rampant 
and that it is hard to keep real incomes from 
falling, under such conditions. For example, the 
cost of living in Sao Paulo, Brazil, is reported to 
have risen fi-om an index of 100 in 1948 to an index 
of 162 in 1953, and in Santiago, Chile, from 100 in 
1948 to 256 in 1953. The cost of living in the 
United States during the same period rose from 
100 in 1948 to 111 in 1953. 

Although there has been a widespread increase 
in government assistance to labor in the field of so- 
cial security in Latin America during the past 15 
years, this in many cases has been financed through 
inflation and a system of taxation which have 
placed the bulk of the burden back on the work- 
ers. Furthermore, a considerable number of 
Latin American countries do not have inheritance 
taxes and progressive income taxes. Even where 
such taxes exist the rates are low and collection 
is often not fully effective. 

An additional reason why there is not greater 
popular satisfaction with the rate of economic 
progress made in Latin America in recent years is 
the fact that, even though average per capita in- 
come has increased, there are large segments of 
the population wliich apparently have not bene- 
fited. In this connection the Mexican experience 
is enlightening. Mexico is among the Latin 
American countries that have done most to keep 
inflation in check. Furthermore, few Latin 
American countries have done more than Mexico 
to develop a middle class or to lessen the extremes 
of income between its poorer and wealthier 
classes. Its rate of economic progress from 1939 
to 1950 was truly remarkable. Capital accumu- 



602 



Deparfmenf of Sfafe Bulletin 



liition during this period was unprecedented. 
There was a great increase in real income which 
permitted a considerable rise in tot^il consump- 
tion. The following information, which is taken 
from the Report of the Combined Mexican Work- 
ing Party entitled "The Economic Development 
of Mexico," indicatas, however that the increased 
income has not been evenly distributed. There 
has been a sliift in favor of profits, and against 
wages and salaries. As a result, a large part of 
the increase in consumption dvu-ing the period 
1939-50 was enjoyetl by a small part of the popu- 
lation. About 14 of the national income was paid 
in the form of profits, rents, and interests to a 
relatively small part of the total population. On 
the other hand, large nimibers of pereons received 
low incomes. 

Furthermore, workers in different regions of 
the country were affected differently by the in- 
crease in average real income. The standards of 
living for industrial workers and for agricultural 
workers in the new agricultural regions were 
above those in the older unimproved farming 
areas, and no significant improvement was dis- 
cernible in the real income of farmers in the old 
areas or in the real income of industrial workers 
as a group. The position of a large number of 
individuals during this period was nevertheless 
improved, since they shifted from other types of 
activity to industry where wages were generally 
higher. 

In one very real sense the rate of progi'ess made 
in Latin America during the period in question 
was to a large extent the result of a situation 
which cannot be relied upon for continued prog- 
ress. The principal reason for the progress was 
an improvement in Latin America's terms of 
trade, i.e. an increase in the prices of their ex- 
ports in relation to the prices of their imports. 
There has not been the inci'ease in economic pro- 
ductivity, especially in the export industries, that 
will be required if Latin America is to continue 
to increase its per capita national income. It ap- 
pears that there has actually been no increase in 
the physical volume of Latin American exports 
since 1948. 

Attitudes of Labor and Management 

The working class has had its desires for high 
standards of living greatly stimulated. By defi- 



nition, the raising of living standards would re- 
quire a great increase in production. However, 
the workers often do not wish to increase their 
hours of work per day or week, which are often 
small (the necessity for choosing between leisure 
and greater income has not been appreciated), or 
to cooperate with management in raising produc- 
tivity. The reluctance to increase their own pro- 
ductivity is based in part on suspicion of their 
employers and fear that increased productivity 
will only lead to more unemployment, or under- 
employment, of which there is now admittedly 
too much. In part this suspicion is warranted, 
because the management and the owners have 
often not yet adopted or approved the system of 
large-scale production and small unit profits. 
With some exceptions, both labor and manage- 
ment in Latin America will have to cliange their 
attitudes before there is to be a significant in- 
crease in productivity. There are encouraging 
signs in some countries that this is being done. 

The Communists of the area and other anti- 
United States elements find the conditions which 
I am describing tailor-made to their purpose of 
fomenting local discontent and antagonism 
against the United States and United States com- 
panies operating in Latin America. For example, 
one of the standard arguments of the Communists 
is that the United States is trj-ing to exploit the 
Latin American countries through private United 
States companies. Actually, insofar as produc- 
tivity has been improved in Latin ^Vmerica, the 
United States-owned enterprises have made an 
important contribution. Furthermore, the im- 
port of capital which is put to productive uses can 
and does make it possible for capital-scarce 
countries to maintain a higher level of consump- 
tion than if they had to reduce consumption to 
the extent necessary to provide all the capital that 
they use out of domestic savings. The Commu- 
nists and their associates, nevertheless, continue 
to urge that foreign-owned enterprises be nation- 
alized and that further foreign capital not be 
allowed to enter the country. Fortunately, there 
appears to be a slowly growing recognition of the 
importance of productivity and capital in some 
labor circles. 

The efforts of the Communists to sow discon- 
tent and discord are often made easier by other 
Latin American citizens, sometimes people in ofii- 
cial positions, who increase misunderstanding by 
speaking and acting as though there were simple 



Ocfober 25, 1954 



603 



■solutions to Latin America's problems. For ex- 
ample, the view is often expressed that Latin 
America's failure to make greater progress is the 
result of the fact that the more highly indus- 
trialized countries pay Latin America too little 
for its raw materials and charge it too much for 
industrial products. Often these same individ- 
uals argue, apparently without considering that 
there is any inconsistency between the two posi- 
tions, that Latin America should increase its 
duties against imported industrial products be- 
cause they are so efficiently produced that the 
Latin American countries cannot compete with 
them without substantially increased tariff pro- 
tection. It may be noted, furthermore, that it is 
common for the United States not to impose any 
duty on imports of most raw materials from Latin 
America, whereas it is rather general for the Latin 
American governments to tax the production or 
export of siich materials, sometimes to the point 
of virtual confiscation. Should they choose to do 
so, the Latin American countries are, accordingly, 
often in the position both to reduce the price to 
their consumers of imported industrial products 
and to increase the returns to their producers of 
raw materials. 

The contention is also often made by Latin 
American representatives that the more highly 
industrialized countries should assure their eco- 
nomic progress by undertaking to stabilize the 
prices of their raw materials in terms of the prices 
of industrial products. 

Terms of Trade 

Actually, as has been suggested earlier and as 
a recent study made by the Pan American Union 
indicates, from the outbreak of the Second World 
War to the present time the terms of trade of the 
Latin American countries as a whole, of the major- 
ity of the individual countries, and of most indi- 
vidual Latin American commodities have been 
vei-y favorable. In recent years they have been 
at approximately the same level as at the begin- 
ning of the century. From 1937 to 1953 they 
became increasingly favorable to Latin America. 
As has also been suggested earlier, the experience 
of the Latin American countries during this pe- 
riod is an indication of the fact that high prices 
for tlieir products have not been a panacea. 

The terms of trade are, in fact, only one of the 
many factors which may influence the welfare of 



a country. For example, the terms of trade do 
not give sufficient weight to volume, which in the 
case of many products has often been a dominat- 
ing element in the determination of international 
prices. The terms of trade also do not include 
any consideration of improvement in quality, 
which customarily occurs over any extended pe- 
riod of time, especially in the case of industrial 
products. The terms of trade may not, therefore, 
reflect the real prosperity of a country and they 
are likely to be even less of an indication of the 
prosperity of individual economic classes within 
a country. Venezuela and Brazil might be taken 
as random examples. The new President of Bra- 
zil, in a radio address last month, described the 
precarious economic situation existing in his 
country. This situation developed although the 
terms of trade were twice as favorable in 1952 as 
in the period 1935-39, and although it appears, 
even though complete statistics are not yet avail- 
able, that its terms of trade for 1953 were at least 
as favorable as for 1952. On the other hand, 
Venezuela's progress and present prosperity are 
well-known to all observers of tlie Latin Ameri- 
can situation, even though the terms of trade of 
her chief export product, petroleum, which con- 
stitutes regularly over 90 percent of her total ex- 
ports, improved by less than 30 percent between 
the period 1935-39 and 1953. 

Coffee Prices 

The fact that high prices are not necessarily 
beneficial to the producers of a product might be 
illustrated witli particular reference to coffee. 
There was an increase of more than 10-fold in 
the price of coffee in Brazil between 1937 and 
November 1953, before the price increase last 
winter. This increase was largely the result of 
the fact that Brazil, tlie world's largest producer 
of coffee, is now producing considerably less coffee 
than in the period before tlie Second World War, 
while world consumption of coffee is, of course, 
much higher. The price increase was not, however, 
an unmixed blessing, especially to the coffee grow- 
ers and more particularly to the woi'kei's. The 
exchange earned from coffee was one of the im- 
portant factors which accounted for an expan- 
sion of the currency in the coffee-producing 
countries, and this and other factors brought about 
the inflation tliat I have referred to earlier. Dur- 
ing the period 1937-53 the cost-of-living index in 



604 



Department of State Bulletin 



Sao Paulo, the principal cofTw-pi-odiioiiij; re<rion 
of Brazil, increased from •22 to l(i(i, more than 
seven-fold. Considerably more than half of the 
increased return was. thcrofore, re(iuired to pay in- 
creased costs of livinj^. Fiutlu'iinore, as a result of 
governmentixl policy in many of the coffee-produc- 
injr counti'ies, inchulini^ Brazil, the expt>rter was 
re<|uired to convei't his exchange in a controlled 
market under such terms that the coffee industry 
was forced to subsidize other activities. The re- 
sult was that the benelit of the increased coffee 
prices went only to a limited extent to those who 
worked coffee lands, especially the laborers. 

"\^^lat I have said about coffee and about dis- 
satisfaction in Latin ^\jnerica with its economic 
conditions suggests that high prices, or even eco- 
nomic development itself, alone, may not be 
enough to meet the needs of the people, especially 
the poorer classes. 

This leads me to a further generalization about 
Latin America, namely, that it is an area likely to 
be faced by increasingly complex problems which 
liave no short-term solution, for which it must 
continue, as in the past, to find answers largely 
on the basis of its own resources, industry, and 
genius. In order to provide increased standards 
of living for its people it must use its resources 
wisely. It must increase its economic produc- 
tivity not only by the application of improved 
techniques of production but through the indus- 
triousness of its people. 

It must find a proper balance between the various 
segments of its economy. Agriculture, industry, 
and transportation must be developed in harmony. 
In some of the Latin American countries this will 
require increased attention to agriculture, where 
per capita output is now less than it was before 
the Second "World War. For example, consider- 
ing 1948-49 as 100, per capita agricultural output 
in Latin America in the period 1934-38 was 107, 
and in 1952-53 it was 101. This means that the 
area is now less able to feed itself than it was 
prior to the beginning of the Second World War. 
Comparable figures for the United States are 84 
in the 1934-38 period and 112 in the 1952-53 
period. 

Specialization vs. Diversification 

Another problem faced by Latin American 
countries in increasing average living standards 
will be to strike a proper balance between spe- 



cialization and diversification of industry. At the 
present time most of the Latin American coun- 
tries are lieavily dependent on one, or at best three 
or four, raw materials and foodstuffs. For ex- 
ami)Ie, tin is the belhvether in Bolivia; nitrates 
and copper in Chile; sugar in Cuba; coffee in 
Brazil, Colombia, El Salvador, and Guatemala; 
meat and wool in Uruguay; petroleum in Vene- 
zuela ; and lead and zinc in Mexico. The prin- 
cii)al reason for this situation is probably the 
fact that the Latin American countries can pur- 
chase a greater volume of foreign goods through 
specializing in these commodities than by produc- 
ing other commodities. Tliey i-ely upon the for- 
eign exchange received from the exi)ort of these 
commodities to pay for most of their imports of 
consumer goods and of capital goods needed for 
economic development and for servicing foreign 
investments. If the countries continue, as will 
apparently be necessary, to rely on foreign imports 
and on foreign investment, they must maintain 
healthy conditions in these basic export indus- 
tries. On the other hand, so long as they are 
heavily dependent on these industries, their econo- 
mies are especially vulnerable to fluctuations in 
the world prices of the commodities in question. 

Another problem faced by the Latin American 
countries is to reach the proper balance between 
encoui-aging savings and investment, on the one 
hand, and permitting consumption levels to rise, on 
the other. If income were equally distributed in 
Latin i\anerica, it is probable that the rate of sav- 
ings would be less than at present, since the small 
amount of increase in income that the average citi- 
zen might receive initially would be much more 
likely to be spent to satisfy consumption needs 
than to be saved. It would be helpful to the 
masses in Latin America, however, if some way 
could be found of inducing the well-to-do to put 
a larger portion of their savmgs into productive 
undertakings. At present inflation and other 
conditions often lead them to invest in real estate 
or in foreign countries, rather than in productive 
enterprises at home. 

Another very difficult problem for the Latin 
Americans is to determine the extent to which 
their development will be financed by local sav- 
ings and by foreign investment. The most readily 
expansible source of economic development funds 
is undoubtedly private foreign capital. The eco- 
nomic development process could undoubtedly be 



October 25, 1954 



60S 



speeded up if local conditions were made attractive 
to such capital. On the other hand, this may in- 
volve the problem of absentee ownership and may 
run counter to nationalistic desires for local owner- 
ship and operation of industry. 

Just one final generalization. Latin America 
is an area in which we have many vital interests 
and with which we should accordingly cooperate 
to the extent that we and our Latin American 
neighbors can find mutually desirable programs. 
Except for Canada, many of the countries of the 
area are our closest neighbors. It contains regions 
of great strategic importance from the viewpoint 
of the United States and Western Hemisphere de- 
fense. It produces many raw materials that are 
important to us in peace and war. From the 
standpoint of military defense of the hemisphere 
our role is, of course, of crucial importance to the 
Latin American countries. Commercially, they 
are dependent upon us as a market for about half 
of their expoits. In the case of the countries 
which are geographically closer to us and in the 
case of some commodities such as coffee, we pur- 
chase a much larger portion of their exports — our 
exports to Latin America are equivalent to about 
20 percent of our total exports. We have always 
been closely bound together with them and they 
and we have generally cooperated effectively to- 
gether. I am sure that close cooperation between 
ourselves and them will continue, notwitlistanding 
many differences of opinion, because it will con- 
tinue to be in our mutual interest to cooperate and 
to resolve our differences in a spirit of understand- 
ing and accommodation. 



Arrival of Pakistan Prime Minister 

Remarks hy Acting Secretary Hoover ^ 

May I express my deep pleasure at the oppor- 
tunity afforded me personally and on behalf of 
Secretary Dulles to welcome you on your return to 
Washington. We in the United States are partic- 
ularly proud of the many bonds of friendship 
which link the peoples of Pakistan and the United 
States. Your previous residence here as Ambas- 



sador of your great country has made you well 
known to Americans of many walks of life. Thus 
it is with a sense of greeting old friends that we 
who are gathered here welcome you. May your 
visit be a most pleasant one for you both. 



National Olympic Day, 1954 

Proclamation 3069' 

Whereas the XVIth Olympic Games of the modern era 
will be held at Melbourne, Australia, November 22 to 
December 8, 1956, with Winter Games to be held at Cor- 
tina d'Ampezzo, Italy, January 26 to February 5, 1956, 
and the Pan American Games will be held at Mexico City 
in March 1955 ; and 

Whereas by a joint resolution approved April 22, 1954 
(68 Stat. 58), the Congress has declared that these games 
will afford an opportunity of bringing together yoimg 
men and women representing more than seventy nations, 
of many races, creeds, and stations in life and possessing 
various habits and customs, all bound together by the 
universal appeal of friendly athletic competition ; and 

Whereas the said joint resolution calls attention to 
the fact that the United States Olympic Association is 
presently engaged in assuring maximum support for the 
teams representing the United States in these athletic 
contests, and requests the President to issue a proclama- 
tion designating the sixteenth day of October 1954 as 
National Olympic Day : 

Now, therefore, I, DWIGHT D. EISENHOWER, Pres- 
ident of the United States of America, do hereby designate 
Saturday, October 16, 1954, as National Olympic Day, 
and I urge all citizens of our country to do all in their 
power to support the XVIth Olympic Games, the Winter 
Games, and the Pan American Games so as to insure that 
the United States will be ftilly and adequately repre- 
sented in these games. 

In witness wheeeof, I have hereunto set my hand and 
caused the Seal of the United States of America to be 
affixed. 

Done at the City of Washington this second day of 

October in the year of our Lord nineteen 

[seal] hundred and fifty-four, and of the Independence 

of the United States of America the one 

hundred and seventy-ninth. 



X^ Cji-f-y L'CZ^ Cj-icu.^ X**o.^. 



' Made at Washington National Airport on Oct. 14 on the 
arrival of Prime Minister Mohammed All and Begum Ali 
(pressrelease 578). 



By the President : 

Walter B. Smith 

Acting Secretary of State. 



' 19 Fed. Reg. C469. 



606 



Department of State Bulletin 



Nuclear Physics, A Triumph of Man's Mind 



hy James B. Conant 

UJS. High Commissioner for Germany^ 



^lien I lay in the sand of Alamogordo on July 
16, 1945, waiting for the first atomic explosion in 
the history of mankind, I would never have 
thought that one day I would open in Berlin an 
American exhibit devoted to the peaceful and con- 
structive applications of atomic energy. Wliile 
I was waiting in the dawn of that summer day, 
I discussed with some of the nuclear physicists 
present the probabilities as to the successful out- 
come of the experiment. For, as everyone now 
knows, we could not be then certain that an atomic 
explosion was possible. 

In the course of our discussion someone men- 
tioned the fact that we had once feared that, if 
an atomic explosion occurred, this would set off 
an uncontrolled chain reaction of the nitrogen in 
the atmosphere and the world would go up in 
flames. Exact calculation had already proved 
conclusively tliat such fears were pure nonsense: 
A nitrogen chain reaction could not occur under 
any circmnstances. Nevertheless, this idea of an 
uncontrolled chain reaction was evidently still in 
my subconscious mind. When the incredibly 
powerful light of the first atomic explosion ap- 
peared, the irrational thought hit me : The whole 
world has gone up in flames. Such was the deep 
impression made on me by the first atomic explo- 
sion in the history of man. 

The tremendous sound of the explosion 10 miles 
away reached us only after what seemed like an 
interminable minute. But long before I heard the 
explosion, the devastating picture which my fan- 



' Address made on Sept. 24 at the Berlin Technical 
University on the occasion of the opening of the U.S. 
exhibition "The Atom" In the 1954 German Industrial 
Exhibition (Hicoo press release). 



tasy had momentarily conjured up had disap- 
peared and I was face to face with reality — a 
reality which was terrible enough. Mankind is 
faced with great and diiBcult problems — that much 
is certain — but on the other hand we do not have 
to reckon with the fear of a world explosion, nor 
indeed with the fear of the radioactive poisoning 
of the entire atmosphere of this globe. 

Tonight, however, I do not propose to talk 
about the military applications of atomic energy 
nor the political problem which the release of 
atomic energy has brought with it. For the ex- 
hibition which we have prepared here in Berlin 
deals with quite different aspects of atomic energy. 

Tonight, rather, I want to devote my lecture to 
the peaceful uses of atomic energy. It is an inter- 
esting fact that in America we knew soon after the 
wartime development had begun that a controlled 
chain reaction was possible, but none of us could 
be sure whether an explosive chain reaction could 
be brought about. Only the laws of nuclear 
physics could give an answer to that question, and 
they were then still partially unexplored. 

Controlled Chain Reaction 

Let me say a few words about the controlled 
chain reaction. In this connection I would like to 
tell another personal story, if I may be permitted. 
Some of you may already have read it in the two 
articles which Mrs. Fermi, the wife of the great 
Italian-American physicist who played such a 
decisive role in the release of atomic energy, has 
published in the New Yorker magazine. 

It was he who brought about the first controlled 
chain reaction toward the end of 1942 under the 
grandstands of the football field at Chicago Uni- 
versity. As soon as the remarkable experiment 



OcJober 25, 1954 



607 



had been successfully carried out, I received a 
long-distance call from Dr. Arthur Compton, the 
director of the Chicago atomic research project. 
In this telephone conversation he said, in accord- 
ance with a prearranged code, "The Italian navi- 
gator has reached the new world." 

"And what is the attitude of the natives?" I 
asked excitedly. "Extremely friendly," replied 
Compton. 

It was thus I knew the first controlled chain re- 
action had succeeded. 

Some of you may ask : ""WTiat exactly is a con- 
trolled chain reaction ? " That is exactly what our 
exhibit will explain. In fact, we have constructed 
there an apparatus which does not differ very much 
from the first atomic pile which Fermi put in 
operation at Chicago University in December 
1942. 

I am not going to try to outline tonight those 
portions of theoretical physics which you will find 
explained repeatedly in our exhibition. Such an 
exposition might be considered presumptuous on 
the part of an organic chemist. For there is a 
certain rivalry between chemists and physicists, 
one that, I hope, is always friendly. But physicists 
do not relish having a chemist venture into a field 
which is their own. But now back to my subject. 

Those of you who know the theory may chiefly 
be interested in the models, instruments, and 
equipment displayed at our exhibition. For the 
others I hope that our exhibition may be an in- 
structive introduction into the new science of 
nuclear physics. 

Surely one must admire the intelligence of man 
which has enabled him to produce a controlled 
chain reaction. But what is the controlled chain 
reaction good for? May I emphasize again that 
I am not talking about the explosive chain reaction 
nor about the political problems which it has 
created. The controlled chain reaction in a nu- 
clear reactor produces energy in form of heat on 
the one hand and chemical elements with strong 
radioactivity on the other. These may be pro- 
duced either as byproducts of nuclear fission or 
by subjecting elements to neutron bombardment 
within the reactor. 

Atomic Power for Industry 

I have just mentioned that a nuclear reactor can 
produce energy which can be used to run steam 
engines or to produce electric power. I feel that 



608 



so much has already been written in the news- 
papers about the atom as a source of energy that I 
need not dwell on this subject, nor shall I discuss 
the economic feasibility of using atomic power for 
industrial purposes. But I do want to emphasize 
one point. The basic technical problems have long 
since been solved. It is the economic application 
of atomic energy for industry which must stiU 
be developed. As you know, I am sure, President 
Eisenhower gave the signal on September 6 which 
started the construction of the first American 
atomic power plant.- Four more experimental 
plants will be built soon, and these five power 
plants are destined to help solve the problems con- 
nected with the economic production and use of 
atomic energy. 

The reactor as a source of industrial energy 
still lies in the future. But the use of radioactive 
products, on the other hand, is already a matter 
of great importance, for they have become in- 
valuable tools of scientific research. Today they 
may be regarded as the most important result of 
the entire reactor program. In America radio- 
active materials have been produced for several 
years in commercial quantities, and they are 
shipped to more than 50 foreign countries. In 
England, particularly at Harwell, similar pro- 
grams have been developed. For substances whose 
radioactivity is short-lived, England naturally re- 
mains the principal supplier for Europe. 

In order to give you an idea of the quantities of 
radioactive materials produced, I would like to 
refer to a single experiment being carried out at 
Brookhaven. This is the so-called Gamma Field, 
where the effect of such radiation on plants is 
studied. Tlie source of radiation used there, a 
small block of radioactive cobalt, is only one of 
many similar sources used in numerous American 
laboratories and research institutes. But this one 
source has a radiation power of 1,800 Curies, the 
equivalent, that is, of 1,800 grams of radium. This 
may not impress you unless I tell you that there 
are only 1,500 grams of radium available in the 
world today. 

I have so far spoken of only one of the appli- 
cations of radioactive materials. Several of the 
other applications, because of their particular type 
of radiation, are an extremely practical and cheap 
substitute for X-ray machines. Many have 



' BuiXBnN of Sept. 20, 1954, p. 396. 

Department of Slate Bulletin 



greater intensity of radiation than radium. This 
tremendous power of radiation makes artificially 
produced radioactive materials extremely danger- 
ous for human beings. It is no exaggeration to 
say tliat the protective techniques which have made 
the handling of such materials possible constitute 
a veritable triumph of human ingenuity. 

When you go to the exhibit, you will find in the 
center of the main hall the actual apparatus which 
has been constructed to enable a person to carry 
out experiments behind a protective wall. The 
magic hands which are thus operated from a dis- 
tance are almost as skillful as the human hand it- 
self. But I must give a word of caution, not to 
warn you against possible dangers of the terrific 
radiation or poisoning — which, in fact, is present 
when this apparatus is used. This warning does 
not concern any possible dangere from radioac- 
tivity or poisoning. Quite the contrary. I must 
warn you that what you will see are harmless 
models. 

I have spoken of the use of some of the radio- 
active products of an atom pile as a substitute for 
a Roentgen tube. Let me remind this audience 
of the significance of the great discovery made by 
Roentgen when he was professor at Wiirzburg in 
the last part of the 19th century. The news of 
this great discovery was soon broadcast to the 
world, and rapidly physicians realized that the 
medical profession had been given a most valu- 
able tool. This was followed by the discovery of 
radium, which is used for very special purposes, 
particularly in the therapy of cancer. Today the 
reactor has given us a whole series of radioactive 
elements which, even in small quantities, are more 
than a complete substitute for Roentgen and 
radiiun radiations. When you visit our exliibi- 
tion, you will fijid interesting displays showing 
the use of radioactive iodine in the diagnosis of 
thyroid cancer and its metastases as well as in the 
localization and therapy of brain tumors. 

Radioactive Materials in Research 

Radioactive materials open new possibilities not 
only for the physician but also for the scientific 
researcher which are not as striking but may be 
just as important. The use of radioactive ma- 
terials in scientific research is difficult to explain 
in nontechnical words. Some of these materials 
are called tracers because they enable the scientist 
to follow complicated chemical reactions with 



great precision. In fact, one can follow these 
processes with the Geiger counter very much the 
way a dog follows the trace of a rabbit with his 
nose. This comparison may be made clearer by 
two specific examples. Both cases show how a 
radioactive element, the radioactive form of car- 
bon, has been involved in the solving of secrets of 
nature. 

I have a personal interest in the fii-st case, as 
one set of experiments in this field was described 
in a paper published in 1941 which carried my 
name among others, although my own contribu- 
tion to this work was small. In those days radio- 
active carbon could be made only in very small 
quantities and with great difficulties in the labora- 
tories. Today it is produced in relatively large 
iiuantities like many other radioactive materials, 
and production costs are considerably lower. In 
this initial experiment carbon dioxide was used 
which contained radioactive carbon and was there- 
fore radioactive itself. In experiments with living 
animal tissue a very surprising discovery was 
made : Some of the carbon dioxide was absorbed 
by this tissue and converted into sugar-like carbo- 
hydrates. Many of you will think that this was 
hardly a revolutionary discovery. In fact, this 
observation was so unexpected that the experi- 
menters felt at first they must have made an error ; 
for according to one of the basic postulates of 
biochemistry, animal tissue could not assimilate 
carbon dioxide but rather produce it by the oxi- 
dation of carbohydrates. It was another accepted 
postulate that assimilation of carbon dioxide by a 
living cell and its conversion to a carbohydrate 
only took place in gi-een plants under the influence 
of light. 

These postulates have now been shown to be 
completely false. Many animal and plant cells 
convert carbon dioxide into sugar, and each step 
in this process has been followed in considerable 
detail by following the trace of the radioactive car- 
bon. I regret that I cannot give you more of the 
details, fascinating as these details and their con- 
sequences are for the scientist. Let me just give 
you the conclusion reached on the basis of these 
experiments: Green plants convert carbon dioxide 
into carbohydrates under the influence of light; 
many animal tissues are able to accomplish the 
same transformation, the required energy pro- 
vided by the oxidation of some other sugars to 
carbon dioxide. 



October 25, 1954 

318878—54 S 



609 



Relation to Archeology 

Now let me jump from biochemistry to arche- 
ology. One of the most difficult problems which 
often faces the archeologist is the dating of an- 
cient discoveries. The second example I want to 
describe to you illustrates one of the most inter- 
esting and most recent applications of radioactiv- 
ity. Here, however, we are not concerned with 
an artificially produced radioactive material but 
rather with one that is found in nature. This 
method was developed by an American physical 
chemist, Willard F. Libby, of Chicago University. 

In the upper atmosphere a small percentage of 
nitrogen is constantly being transmuted into ra- 
diocarbon through the bombardment with cosmic 
rays. The percentage of this radiocarbon in the 
atmosphere is unbelievably small and at the same 
time constant : one atom of radioactive carbon to 
1,000 billion atoms of ordinary carbon. The ra- 
diocarbon is oxidized to carbon dioxide, which 
is absorbed by plants together with ordinary, non- 
radioactive carbon dioxide. Thus, radioactive 
carbon gets into the tissues of all living organisms 
in the same relative quantities as mentioned be- 
fore : one atom of radioactive carbon to 1,000 bil- 
lion atoms of ordinary carbon dioxide. 

Thus, when a plant or animal dies, the amount 
of radioactivity in its tissues, which is extremely 
small, corresponds to that in the atmosphere. Af- 
ter about 5,500 years — the so-called half life of 
radioactive carbon dioxide — half of the carbon 
14 has undergone decomposition and its radio- 
activity is thus only half of what it was initially. 
After about 11,000 years it is only one-quarter, and 
so on. Accordingly, by determining the radio- 
activity of any matter containing carbon dioxide, 
one can determine how many j^ears ago it acquired 
the carbon dioxide from the atmosphere. 

I must point out that these measurements are 
extremely difficult and can only be carried out with 
instruments of the utmost sensitivity. Nonethe- 
less, it is possible to date archeological discoveries 
that are from 1,000 to 20,000 years old with an ac- 
curacy of about 200 years. 

The accuracy of this method of radiocarbon dat- 
ing was checked by measuring the radioactivity 
of a piece of wood taken from the inside of one 
of our giant California sequoia trees. The age of 
this tree was known accurately through the num- 
ber of its annual rings. 

One of the interesting conclusions that have been 



reached is that the last glaciation of the North- 
ern Hemisphere occurred about 11,000 years ago 
and that the famous cave paintings in the Lascoux 
cave near Montignac in France are about 15,000 
years old. Linen wrappings from the Dead Sea 
scrolls of the Book of Isaiah, which were recently 
found in Israel, were determined to be about 1,900 
yeai-s old. 

If you have understood my explanations, you 
will have noticed that the two examples that I 
gave you are actually closely connected. Both 
have in common the assimilation of carbon dioxide 
by organic tissue. As a former professor I have 
a weakness for practical illustration. We have 
here a Geiger counter. I do not want to describe 
this instrument in detail. Suffice it to say that it 
reveals the presence of radioactive radiation. If 
this rose had been grown in an atmosphere con- 
taining radioactive carbon dioxide or with the 
use of radioactive fertilizer, it would itself radiate 
and affect a Geiger counter. 

Unfortunately, it would take too long for a 
plant to absorb carbon dioxide for anyone to dem- 
onstrate such a transformation in tlie course of a 
single lecture, but I am going to place this rose 
in water containing a radioactive phosphorus com- 
pound. Perhaps later I shall see whether or not 
I can convince you that there has been any assim- 
ilation of the radioactive material. Long ago I 
learned to be cautious about doing experiments 
before audiences. In the days when I was a chem- 
istry professor, I had more than one failure in 
such attempts. What I predicted sometimes did 
not come to pass. On one such occasion an elderly 
visitor to my lectures came up afterward and said, 
"Young man, you would do better as a lecture 
demonstrator if you spoke after the event as an 
historian and not before the event as a prophet" — 
a liiece of advice which I must say has stood me in 
good turn in my new profession. But of political 
matters I do not propose to speak tonight. 

The United States Government is contributing 
the exhibit entitled "The Atom" to the annual Ber- 
lin Industrial Fair because in the United States 
there were brought to a focus the results of what 
may be thought of as a great international under- 
taking. One may well consider the results 
achieved in the last 15 years as a great accomplish- 
ment of the creative human spirit. As an Ameri- 
can I am proud of the part American scientists 
have played. And it is highly satisfactory to re- 



610 



Department of State Bulletin 



member that in this endeavor they worked closely 
with (.ertiiin great scientists who were refugees 
from the totalitarian regimes of Europe and who 
found iisyluni in America. Let nie name liere 
Szilard, AVigner, Teller, Weisskopf, and Fermi. 

History of Atomic Physics 

At this point may 1 remind you of some of the 
more important steps in the history of atomic 
physics in this century. Kadioactivity was discov- 
ered by the Frenchman Becquerel in 1896 and 
studied tlioroughly by Pierre and Marie Curie 
who, 2 yeai-s later, discovered and isolated radiiun. 
In 1010 the English physicist Rutherford trans- 
formed an atomic nucleus for the first time. By 
bombarding a few atoms of nitrogen with alpha 
particles — that is, nuclei of the element lieliuni — 
he succeeded in transforming them into oxygen. 
The next decisive step was the discovery of neu- 
trons, this electrically neutral particle which alone 
makes possible the release of atomic energj' 
through a controlled chain reaction. On the basis 
of experiments made by Booth and Becker in Ger- 
many in 1930 and Irene Curie and Frederic Joliot 
in France in 1932, and on the basis of his own 
calculations, the Englishman Chadwick jiredicted 
the existence of neutrons and then proved this 
experimentally. 

The discovery of the neutron opened a new chap- 
ter in experimental physics. It is hard to over- 
estimate the importance of the new methods which 
were developed in a field which we have already 
learned to call neutron physics. The bombard- 
ment of elements with neutrons provided a way 
of carrying out many transmutations. The bom- 
bardment of the element with the greatest atomic 
weight, namely uranium, produced some strange 
effects which were at first misinterpreted. In 
January 1939, Professor Otto Hahn together with 
Fritz Strassmann made the remarkable discovery 
that in the process of the bombardment of uranium 
with neutrons there appeared elements of about 
half the atomic weight of the original uranium. 
Tliis discovery was made here in Berlin, and I 
am delighted that Professor Hahn is with us here 
in this city tonight. 

This discovery of Hahn and Strassmann was 
quickly made known to the scientific world and 
set up an intellectual chain reaction in which the 
names of Frisch, Meitner, Bohr, and Fermi are 
particularly connected. In the United States the 



news spread by word of mouth that in all prob- 
ability what was at hand was an atomic fission. 
This was soon verified by experiments in many 
laboratories. Within a year more than a hundred 
experimental papers luid been published. By the 
beginning of 1940 it was clear that one of the 
uraniinn isotopes would undergo atomic fission 
w hen bombarded with neutrons and in the process 
liberate more neutrons. Thus, the possibility of a 
chain reaction on a large scale had to be considered. 
It seemed that man was on the verge of demon- 
strating what Einstein had predicted more than 
35 years before — namely, that matter could be con- 
verted into energy. 

In the meantime Eurojje had gone to war. 
American, English, and Canadian scientists — with 
generous assistance of iVmerican industry — began 
to work feverishly, mostly on American soil, to 
solve the problem of how to release atomic energy 
on a large scale. AVliat these scientists accom- 
plished can truly be called a miracle of research. 
Once again, I am not referring to the atomic bomb 
but to the enormous collective scientific achieve- 
ment that the solution of the thousandfold prob- 
lems of releasing atomic energy on a large scale 
required. On the basis of experiments with mat- 
ter available only in such minuscule quantities 
that they could not be made visible even with the 
best of microscopes, computations were made with 
the aid of extrapolation leading up to the con- 
struction of an atomic pile. The enlargement fac- 
tor involved amounted to about 10 billion. 

As an organic chemist dealing with the reac- 
tions of molectiles I must confess that I was highly 
skeptical when my friends the physicists first told 
me of their plans. They proposed to release 
atomic energy by the fission of a kind of uranium 
which constitutes only approximately one-half of 
one percent of natural uranium. This isotope 
known as U-235 they considered to be the best fuel 
for a controlled chain reaction. In order to raise 
the probability of the fission of this isotope they 
proposed to reduce the speed of the liberated neu- 
trons by having the equivalent of a break. Ac- 
cording to the physicists' calculations it would be 
possible to control a chain reaction if uranium and 
a so-called moderator designed to slow down the 
fast neutron were piled up in layers. Such a con- 
struction came to be known as an atomic pile. Ac- 
cording to theory it seemed certain a minimum 
mass of uranium — the critical mass — would be 



Ocfober 25, 1954 



611 



needed before the chain reaction became self- 
sustaining, but the exact size of this critical mass 
could not then be calculated accurately. And 
when plans for an atomic pile were first drawn 
up in 1942, one did not know whether it would 
have to be the size of a table or as large as a foot- 
ball stadium. In our exhibition you will find a 
full-size replica of a typical so-called grapliite re- 
actor not unlike the first one built in Cliicago. 



A Triumph of Man's Mind 

I am very much tempted at this time to speak in 
more detail not only of the model of the reactor 
which j'OU will see but of the other models which 
are shown in our exhibition. But since you will 
all have an opportunity of seeing these things for 
yourself, I sliall not speak further about the exhi- 
bition. Eather let me, in conclusion, return to the 
title I have given to this lecture, namely "Nuclear 
Physics, A Triumph of Man's Mind." In so do- 
ing, I am clearly drawing your attention to the 
pure scientific aspects of the whole undertaking, 
and in this connection an old story comes to mind. 
A distinguished German theoretical physicist was 
once asked to give a lecture on the relation between 
pure and applied ph3?sics. His speech was very 
brief. He said : "The relation is very simple — 
the two have nothing whatever to do with each 
other." 

That he had slightly oversimplified the situa- 
tion, I hardly need to point out this evening. 
Nevertheless, the story has point here tonight, for 
some of my listeners may have forgotten, as they 
have listened to the mass of technical details I have 
expounded, the exciting development of the basic 
scientific ideas. For I have dwelt at some length 
this evening on the significance of the new discov- 
eries in the field of nuclear physics for everyday 
life. When you visit our exhibition you will see 
for yourselves the benefits that have arisen for 
mankind out of the scientific developments of the 
last 20 years. Artificially radioactive materials 
are used today, and will be used even more in the 
future, in medicine, in agriculture, and in innu- 
merable other scientific fields. I need not delve 
into the immense possibilities arising out of the 
production of energy and heat by controlled chain 
reaction. But let us forget the practical uses of 
atomic energy. Let us look at the history of the 
development of nuclear physics in the same spirit 



as we would listen to a symphony or an opera, or 
gaze at an architectural monument, or look at a 
painting. 

It is often difficult for the layman to realize to 
what extent the entire history of nuclear physics 
has been the result of the amalgamation of the in- 
tellectual powers of many men from many nations 
and through many periods of history. I am not 
referring primarily to the fact that after 1940 a 
large group of scientists worked together day by 
day. I am thinking rather of what may be called 
the unconscious intellectual collaboration of scien- 
tists who worked independently over many years. 
The people I have referred to in this lecture must 
be regarded as forming only the last link in a 
great chain of scientists who have been concerned 
with the structure of matter and the relation of 
matter and energy. It is the work of this whole 
host of scientists who have developed new con- 
cepts and tested them by experiment that has laid 
the solid foundations, the results of which have 
come to a climax in our controlled release of atomic 
energy. 

The nonscientist often believes erroneously that 
such material achievements as the release of atomic 
energy are the results solely of experimental work 
and of engineering skill. He sometimes imagines 
that the experimenters pursue their goal by a mere 
trial and error method. Such an idea is com- 
pletely false. The example of Einstein's famous 
formula relating energy and matter serves to show 
the significance of new ideas of a highly theoret- 
ical nature. Indeed, new concepts are often con- 
siderably more important than the results of ex- 
periments, and in fact many important discoveries 
of an experimental nature are the result of new 
conceptual developments. Scientific theories are 
best regarded as guiding lines which indicate to 
the scientist a fruitful line of experimentation. 
In the extraordinary and totally unexpected de- 
velopments of nuclear physics, mathematics has 
played a decisive role, for example. 

I have used the word unexpected in the preced- 
ing sentence advisedly. For one of the most fasci- 
nating aspects of the history of the development 
of atomic energy comes to light when one remem- 
bers what was said a short time ago by the best 
informed scientists about the nature of the uni- 
verse. You will find on the exhibition wall a defi- 
nition of an atom which goes back to the early 
Greeks and which would have been subscribed to 



612 



Department of State Bulletin 



liy all scientists as late as the beginning of this 
century. This is the delinition that the atom is a 
particle which cannot be split any further. Now 
we accept as a matter of coui-se the illogical state- 
ment that nuclear physicists are concerned, among 
other things, with the sjilitting of something that 
cannot be further divided — namely, an atom. 

Today, most of us take for granted thut a chain 
reaction involving uranium can bring about the 
liberation of energy by the conversion of matter 
into energy, and we glibly say that this is but a 
demonstration of the truth of Einstein's famous 
formula, "Energy equals mass times the square 
of the speed of light.'" Indeed, the repetition of 
this formula even in the daily press has made it 
almost a household word. But let me remind you 
of what an outstanding physicist of two genera- 
tions ago said about the same subject. I quote from 
a lecture of Professor Tate in 1876 : "The grand 
test of the reality of what we call matter — the 
proof that it has an objective existence — is its inde- 
structibility and uncreatability, if the term may be 
used, by any process at the command of man." 
And describing how the chemist can count on ex- 
actly the same amount of matter at the end of a 
series of chemical transformations as at the be- 
ginning, the lecture concluded : "This, then, is to 
be looked upon as the great test of the objective 
reality of matter." 

I sliould be trespassing far beyond the limits of 
this lecture if I attempted to discuss the impact of 
the developments of the new physics on the basic 
postulates of the philosopher. I would like only 
to point out the revolutionary effects of the whirl- 
wind development of nuclear physics on some of 
the basic premises of our thinking, and I am using 
revolutionary not in the sense of a rebellion against 
the past but in order to emphasize the breathtaking 
speed with M-hich the human spirit has been able to 
pile one new thought and one new discovery upon 
the other. 

It is therefore with a feeling of reverence and 
awe for what the human spirit can accomplish that 
I ask you to enter the doors of the American ex- 
hibit on the atom. 

The history of the last 300 years is a proud rec- 
ord of what human beings can accomplish through 
the manipulation of ideas. It is a story of the 
flowering of the creative powers of the human in- 
tellect. In this troubled period of history under 
the shadow of fusion and fission bombs, we do 



well to stress this phase of modern life. To have 
constructed a great fabric of new concepts and 
conceptual schemes, arising from experimental ob- 
servation and fruitful beyond measure of new ex- 
periments, is an achievement which, as long as 
there is recorded history, must be regarded with 
the greatest admiration. Like the Parthenon and 
the cathedrals of tlio Middle Ages, the scientific 
theories of the 19th and 20th centuries stand as 
witnesses to what the human spirit can accomplish. 
With such thoughts in mind, I now declare the 
American portion of the Berlin Industrial Fair 
open, since I shall not have the privilege of par- 
ticipating in the official opening tomorrow at the 
appointed time. 



Exchange of Messages 
on Trieste Accord 

On October 5 President Eisenhower sent mes- 
sages of congratulations on the Trieste accord to 
Luigi Einaudi, President of the Republic of Italy, 
and Marshal Josip Broz-Tito, President of the 
Federal PeopWs Republic of Yugoslavia. On 
October 9 the President received replies to these 
messages. Texts of the four messages follow: 

President Eisenhower to President EinaudI 

I wish to convey to you my profound gratifica- 
tion and that of the American people at the 
achievement of an agreement on the delicate Tri- 
este problem. This agreement, worked out 
through long months of difficult but friendly and 
constructive endeavor, gives testimony to the far- 
sighted statesmanship and good will of the gov- 
ernment of Italy. It is my earnest hope and 
expectation that this arrangement will usher in a 
new era of fruitful collaboration that will con- 
tribute to the prosperity and security not only of 
Italy and Yugoslavia but of all the free nations 
of Europe. We agree, I am sure, that this fine 
example of the ability of neighbor nations ami- 
cably to settle extremely difficult questions will be 
highly reassuring to our own peoples and those 
of friendly nations throughout the world. 

Please accept, Mr. President, my heartfelt con- 
gi-atulations at the efforts which you and the 
members of the Italian government have exerted 



Ocfober 25, 1954 



613 



to make possible this agreement wliich has so ma- 
terially contributed to the possibility of maintain- 
ing peace in the world. 

Sincerely, 

DwiGHT D. Eisenhower 

President Einaudi to President Eisenhower 

Mr. President, Ambassador Clare Boothe Luce 
has personally delivered the message you have ad- 
dressed to me at the moment of the conclusion of 
the agreement on the problem of Trieste and I 
wish not to delay in telling you how gi-atifying is 
for me this most valuable evidence of the satisfac- 
tion with which the American people and their 
President have welcomed the event. 

You have stressed the farsighted and construc- 
tive spirit that has animated the Italian Govern- 
ment during tins arduous diplomatic issue and 
have availed yourself of the understanding 
reached between Italy and Yugoslavia to reaffinn 
your confidence in a fruitful cooperation of the 
two bordering nations and in the help that the 
mutual relations among all peoples will derive 
from it. 

The agreement arrived at by my country will 
not fail, as you say, to have profound and favor- 
able repercussions on the happier future of a 
peaceful and strongly united Europe. 

In assuring you that Italy is well aware of the 
friendly contribution brought by the United 
States of America to the settlement of the ques- 
tion of Trieste, I thank you, Mr. President, in the 
name also of the Italian Government, for the 
noble expressions contained in your message, 
while I beg you to believe me, 

Sincerely yours, 

LuiGI ElXAUDI 

President Eisenhower to Marshal Tito 

Permit me on behalf of the American people 
personally to extend my warm congratulations to 
you and to the other members of your govern- 
ment at the achievement of an agreement on the 
Trieste problem. Tliis agreement, worked out 
with good will, patience and unremitting en- 
deavor, reflects honor upon your government, for 
the broad, farsighted statesmanship which has 
made this agreement possible. 

I am sure that you share with me the sense of 
optimism engendered by the agreement. All of 



the peoples of the free nations of Europe, as well 
as the American people, will now be encouraged 
by this arrangement which opens the way to 
greater security in Southeastern Europe against 
any possible encroaclunent and fostere the hope 
that improved relations between Yugoslavia and 
Italy will enhance the general welfare and peace 
in Eiu'ope. 

I wish to convey to you my deep gratification at 
this accord which I am convinced will materially 
contribute to that which is closest to our hearts, 
the maintenance of peace, of security and of pros- 
perity in the world. 

Sincerely, 

DwiGHT D. Eisenhower 

Marshal Tito to President Eisenhower 

Permit me to thank you most cordially on my 
behalf as well as on behalf of the members of 
the Yugoslav Government for the extremely warm 
congratulation you were kind enough to extend 
to me on the occasion of the agreement achieved 
on the Trieste problem. 

I avail myself of this opportunity to thank you 
for your great efforts in this matter which came 
particularly to expression in your message sent 
through Mr. Mirrphy and which greatly contrib- 
uted to the overcoming of the last obstacles and 
to the reacliing of an agreement. I fully share 
with you the sense of optimism that this agi-ee- 
ment will have great significance both for the 
normalization of relations between Yugoslavia and 
Italy and for the strengthening of peace and se- 
curity, not only here but generally in Europe. 

I wish to convince you that, regardless of the 
sacrifices Yugoslavia has made for this agreement, 
I as well as the other members of the Yugoslav 
Government feel a satisfaction that in this part of 
Europe a problem has been settled which had wor- 
ried the world. 



Assistant Secretary Robertson 
Visits Formosa 

Press release 669 dated October 11 

Assistant Secretary for Far Eastern Affairs 
Walter S. Robertson left on October 9 for Taipei, 
Formosa, where he will confer with Chinese Gov- 
ernment officials on current and prospective U.S. 
aid programs. 



614 



Deparfmenf of State Bulletin 



Mr. Bobertson was accompanied by Walter P. 
McConauf^liy, Director of the Office of Chinese Af- 
fairs, Department of State, and by Frank L. Tur- 
ner, who is in charge of Chinese aid programs for 
the Foreign Operations Administration. 



American Ambassador to Cambodia 
Presents Credentials 

WIiUp Iloiise prfs» roli-nsc dated October 2 

White House Announcement 

Robert M. McClintock presented his credentials 
us American Ambassador to Cambodia on Octo- 
ber 2. Mr. McClintock, who arrived in Phnom 
Penh, tlie capital of Cambodia, on September 30, is 
the first resident American Ambassador to that 
country. The United States, which has recog- 
nized Cambodia as an independent country since 
1950, has until now been represented by an Am- 
bassador resident at Saigon, Viet-Natn, who served 
concurrently as Ambassador to Viet-Nam and 
Cambodia and Minister to Laos. A charge d'af- 
faires has heretofore been resident at the American 
Embassy at Phnom Penh. 

The assignment of a resident Ambassador at 
Phnom Penh constitutes furtlier recognition by 
the United States of the completion of Cambodian 
independence through the full assumption by 
Cambodia of the powers of self-government. 

In a joint communique issued at Washington 
on September 29 at the end of the United States- 
French talks on Indochina,^ it was announced that 
the channel for French and Unitetl States economic 
aid, budgetary support, and other assistance to 
Cambodia, Laos, and Viet-Xam would be direct 
to each state, and that the United States repre- 
sentatives would begin discussions soon with the 
respective governments of the three states regard- 
ing direct aid. 

United States economic assistance to Cambodia, 
as well as to Viet-Nam and Laos, has been pro- 
vided directly for some time. United States 
budgetary support for the Cambodian armed 
forces has until now been provided through the 
French Government. AlS soon as arrangements 
can be made, budgetary support will henceforth 
be provided directly to the Government of Cam- 



' Bot-letiit of Oct. 11, 1954, p. 534. 
Ocfober 25, J 954 



bodia. The Cambodian Government is in full ac- 
cord with this decision to provide assistance 
tiiroiigh direct channels. 

President's Message 

When he prcnentcd hin cndentials, AmhauiHador 
McClintock dclivrrcd the following meHHuye from 
President Eisenhower to Norodom Sifuinouk, 
KiTig of Cambodia. 

Your Ma.jesty : The people of the United States 
have watched with concern and admiration the 
struggle of Cambodia against unwarranted Com- 
munist aggression. The United States is happy 
that Cambodia has reaffirmed its independence and 
that your Kingdom is in a position now to under- 
take a course which will secure that sovereign free- 
dom for which your people fought. 

At this time when Cambodia has so convincingly 
demonstrated its independence and its stern deter- 
mination to maintain that independence, I desire 
Your Majesty to know that my Government will 
be pleased to consider ways in which our two coun- 
tries can more effectively cooperate in the joint 
task of stemming the threats facing your terri- 
tories and maintaining peace and prosperity in 
your Kingdom. 

With assurances of my personal esteem and high 
regard, 

Sincerely, 

DwiQHT D. Eisenhower 
FOA Sends Flood Relief to Nepal 

The Foreign Operations Administration on 
September 27 announced a program to alleviate 
suffering among the stricken people of Nepal, 
where recent floods combined with an earthquake 
have left approximately 1,000 dead and more than 
132,000 homeless. 

Dr. Alexander Langmuir, Chief, Epidemic Con- 
trol Programs, U.S. Public Health Service, is now 
in Nepal making an on-the-spot survey to deter- 
mine the full extent of the assistance needed. Be- 
cause of the lack of communication facilities in 
the country, air reconnaissance of the disaster 
areas has been authorized. 

Meantime, Foa has authorized an emergency ex- 
penditure of $75,000 for the purchase of such badly 
needed supplies as vaccines and antibiotics, par- 
ticularly for waterborne diseases. 



615 



World Security and the World Health Organization 



l)y David McK. Key 

Assistant Secretary for IntematioTial Orgamization Affairs ^ 



President Eisenhower in his State of the Union 
Message this year affirmed that "In the world as a 
whole, the United Nations, admittedly still in a 
state of evolution, means much to the United 
States. It has given uniquely valuable services in 
many places where violence threatened. It is the 
only real world forum where we have the oppor- 
tunity for international presentation and re- 
buttal." 

At times, nations may seem to use this interna- 
tional forum of the United Nations to stress dis- 
agreements. Differences of viewpoint are some- 
times expressed in harsh terms which are dramatic 
and make the headlines. Yet the function of the 
United Nations as a forum is of great value. It 
has been likened to that of a safety valve which 
serves to reduce pressures. The airing of disputes 
through debate often reduces the risk of resort to 
force. Moreover, a basic principle familiar to 
democratic countries is that in the long run free 
debate exposes falsehoods. The discussions in the 
General Assembly last November were invaluable 
in demonstrating the falsity of Communist 
charges that the United States Air Force had em- 
ployed germ warfare in Korea. A distinguished 
representative of the medical profession. Dr. 
Charles W. Mayo, outlined with great skill how the 
Communists have perverted the use of the "condi- 
tioned reflex" technique to obtain false testimony 
from prisoners.^ The General Assembly, repre- 
senting world opinion and recognizing the empti- 
ness of the Communist allegations, strongly con- 
demned the charges. 



' Address made before the American Public Health As- 
sociation at BulTalo, N. Y., on Oct. 11 (press release 563 
dated Oct. 8). 

' Bulletin of Nov. 9, 1953, p. 641. 

616 



However, the United Nations is far more than 
an effective and unique world forum. It is, in the 
words of the President, "sheer necessity" and "a 
place where the nations of the world can, if they 
have the will, take collective action for peace and 
justice." 

Before the Minnesota Medical Association last 
June, I had the privilege of reviewing at length 
the accomplislunents of the United Nations in op- 
posing aggression, in peaceful settlements of dis- 
putes, and in setting up machinery which helps to 
secure and maintain the peace.^ At that time, I 
also referred briefly to the work of the United Na- 
tions and its specialized agencies in the social and 
economic fields. Since World War II, the United 
States and other peace-loving nations have taken 
the lead in developing a number of specialized 
teclmical agencies within the United Nations sys- 
tem. The work of these specialized agencies makes 
headlines only infrequently; yet it is as truly a 
part of cooperative international action for peace 
as are the activities of the United Nations itself to 
which I have already briefly referred. In the 
longer term, these agencies — the World Health 
Organization (Wiio), the Food and Agriculture 
Organization (Fao), the United Nations Educa- 
tional, Scientific and Cultural Organization 
(Unesco), the International Labor Organization 
(Ilo), and others — may perform work of great 
importance in removing the root-causes of war. 

The Vicious Cycle 

Throughout history, most of mankind has been 
diseased, hungry, and poorly housed. For 6 out 
of 10 human beings — for 9 out of 10 in many eco- 



• IU6,., June 28, 1954, p. 976. 

Department of State Bulletin 



nomically underdeveloped areas — tlicse remain 
the normal conditions of life totlay. As a result, 
the stJibility of half the world is menaced by a 
vicious social and economic cycle. Poor health 
means lower productivity; lower productivity 
means a lower standard of living; a lower stand- 
ard of living means less footl, education, and 
poorer living conditions; these, in turn, mean poor 
health. Thus the cycle of misery is completed. 

The peoples to whom these conditions are a grim 
reality are ever more aware that modern tech- 
nology' in economically advanced countries pro- 
vides a healthier and vastly more abundant life. 
Communist propagandists are, of course, exploit- 
ing this situation by claiming that communism 
alone provides the solution. Unless this destruc- 
tive cycle in economically underdeveloped areas is 
broken, mounting tensions may rend the world in 
conflict. 

Tliis situation gives an immediate urgency to 
article 55 of the United Nations Charter, under 
which member states agree to take joint and sepa- 
rate action to promote higher standards of living 
and conditions of economic and social progress. 
The specialized agencies are a major means by 
which nations are acting jointly to these ends. 
You, as experts in public health, are aware that 
the World Health Organization is among the fore- 
most in contributing toward breaking the vicious 
circle I have described and thus helping to eradi- 
cate the social and economic causes of vrar. 

The continuing achievements of Who can be 
evaluated in either economic and material or in 
psychological and spiritual terms. I shall refer 
only briefly to the former aspect, but I should like 
to discuss more fully the psychological aspect. 

Since the creation of Who, there have been many 
favorable references to its accomplishments 
measured in terms of material or economic gain. 
A recent example is contained in the current Who 
Newsletter (October-November 1954). Afghani- 
stan, with Who assistance, is now well on the way 
to nationwide control of malaria, a disease which 
each year has sapped the health and economic 
productivity of one-quarter of its population. By 
next year, Afghan nationals, trained by the Who 
team, will be able to continue their national 
malaria-control campaign without further aid 
from international workers. For one-quarter of 
the population of that country, a crushing burden 
on productivity will be lifted for the first time. 



'\^nuit this may mean economically can be seen from 
the results of malaria-control campaigns in nearby 
countries where, in some areas, crop productivity 
has increased by one-third. 

These material results, multiplied many times 
over in the many countries which Who is assisting 
with a wide range of health activities, are already 
helping impressively to break the destructive cycle 
of disease and poverty. 

Psychological Contributions of WHO 

The [)sychological or spiritual contributions of 
Who to world peace are less tangible than the eco- 
nomic contributions and so far have received far 
less attention. I am convinced, however, that in 
the long run they are more fundamental, for they 
deal with men's minds. Who, like other special- 
ized agencies, is promoting democratic and not 
totalitarian ways of life. It is promoting self- 
respect, self-reliance, and freedom for the 
individual. 

Dr. Leonard Scheele, the Surgeon General of 
the Public Health Service, in a notable address 
last June at the Midwest Conference on Woi-ld 
Health sponsored by the National Citizens' Com- 
mittee, emphasized the importance of Who as "an 
application of democratic principles." From my 
own observations of the work of Who, I heartily 
endorse this view. It is significant that the 
Seventh World Health Assembly meeting in May 
of this year elected as its president an African, 
Dr. Togba of Liberia. Dr. Togba in his presiden- 
tial address pointed out that in Who "the concept 
of democracy is being translated into action with- 
out regard to size or development of a country, 
race, culture, or creed." 

The structure of Who reflects democratic prin- 
ciples of organization. Membership is open to all 
states on an equal basis. All, large and small, may 
participate with equal voting rights in the annual 
World Health Assemblies. Moreover, the decen- 
tralized regional structure of Who has enabled 
the organization to be even more responsive to the 
wishes and needs of member states. Who is 
unique among international agencies in the extent 
to which it makes use of regional offices and com- 
mittees. Nations discuss with the regional office 
staffs their needs for various types of Who assist- 
ance. The regional committees then enable nations 
and territories to meet on an area basis to discuss 
their health needs and to review a regional health 



Ocfober 25, 1954 



617 



program and budget. Only after this regional re- 
view are these programs submitted to Who head- 
quarters for integration into an overall annual 
program and budget and for final approval or 
modification by the World Health Assembly. In 
this way, nations participate at several stages in 
the determination of Who programs — individu- 
ally, at the regional level, and on a world scale. 

Who is implementing the principles of democ- 
racy not only in its organization structure, to 
which I have just referi-ed, but likewise in its 
activities and programs. Who activities are help- 
ing to build effective communication between the 
peoples of the world. By "communication" I 
mean not merely the modern technological means 
of communication, such as the radio and airplane, 
but the man-to-man exchange of ideas and accom- 
modation of differences which are the basis of 
understanding. Through this process the Who 
activities are doing something to surmount the 
many barriers — cultural, political, and ideologi- 
cal — which still separate nations and peoples. 
Many Who projects illustrate this. 

Take as a typical example the Who malaria- 
control team in Formosa. In addition to an 
American entomologist, there are on that team a 
malariologist from Greece and a sanitary engineer 
from the Philippines. Operating as a team, these 
technicians are performing outstanding work in 
helping the people and government of Nationalist 
China to control the menace of malaria. More 
than that, they are demonstrating together that 
democracy in action translates itself into better 
understanding, education, and improved health 
and living conditions. 

Altogether, the Who staff is composed of 700 
health experts fi'om 50 countries, including about 
100 from the United States. They are sharing 
common tasks and common interests and are work- 
ing toward common objectives. They are learning 
to understand each other's viewpoints and to live 
harmoniously in a world which technology has 
shrunk so that we are all neighbors. 

Who technicians, whether at headquarters or on 
field projects, are likewise becoming acquainted 
with the peoples they are helping and are identify- 
ing themselves with the needs of these peoples. 
But this is, of course, a two-way process. On the 
other hand, throughout the economically under- 
developed areas of the world, the villager, the 
farmer, and the artisan are discovering that co- 



operative international action can achieve tangible 
benefits for them in their own lives. 

"Mr. Who" 

In tliis connection I cannot resist retelling an 
amusing but pertinent story about the World 
Health Organization, which is known in many 
parts of the world as "Who." An Indian doctor 
working on malaria control in a remote village in 
Northern Tliailand asked the local head man a few 
questions: Had he heard of Mr. Nehru? "No." 
Had he heard of President Eisenhower? "No." 
Had he heard of the U. N. ? "No." Had he heard 
of Who? "Oh, yes. Mr. Wlao is the man who 
sprayed my house, and we have had no more sick 
babies — very good man." 

This incident, which has been multiplied many 
times over, illustrates how the work of Who and 
other specialized agencies gets to the grass roots 
and effectively helps the common man. More- 
over, the peoples of underdeveloped areas are dis- 
covering, sometimes for the first time, that they, 
themselves, can actively participate in measures 
to improve their conditions of life. A mother tak- 
ing her child to a rural health center, where she 
will learn the elements of child hygiene; or a vil- 
lage population voluntarily pooling their labor to 
help build a sanitary well — these apparently in- 
significant events actually often represent a new 
awakening of individual and commimity initiative. 

Such, then, are some of the intangible accom- 
plishments of Who. They are found in the nature 
of the organization; in the bringing together of 
technicians from many countries to work with the 
people of many countries; in the stinmlation of 
local and national initiative. They add up to the 
promotion of democratic rather than totalitarian 
attitudes and processes. They are helping to make 
possible effective communication, a genuine meet- 
ing of minds. In this respect, just as sui'ely as in 
terms of economic gains. Who is helping gradu- 
ally to reduce tensions which could explode into 
war. It is not a rapid process, but it is in the right 
direction — and it is of importance for the security 
of the free world and of the United States. 

Today I have dealt mainly with Who and its 
achievements, which illustrate how the specialized 
agencies of the United Nations system play an im- 
portant part in removing the root causes of war. 
This work, of course, must be coordinated. It is 
evident that Who is alive to the need for continued 



618 



Department of State Bulletin 



luprovements in coordination, as shown by the 
onls of the Director-General, Dr. Candau, in his 
annual report on the work of Who for lOi'ilS.* lie 
nfers to "a growing awareness in all of us of the 
iiicd to plan Who's role in proniotin<; world health 
as comprising only one i)art — although admittedly 
a vital and central one — of the general framework 
of all national and international efforts to improve 
social and economic conditions throughout the 
world." 

Support for and strengthening of all activities 
of the United Nations system and strengthening 

' U. N. doc. E/2592 dated May 4, 1954. 



of the free world are integral parts of United 
States foi-eign policy. Addressing the ninth ses- 
sion of the General Assembly only last month, 
Secretary of State John Foster Dulles underlined 
the wholehearted belief of the American people in 
the United Nations Charter." This charter, he 
said, "recognizes that peace is not a passive con- 
cept but a call to action." The United Nations 
system is meeting tliis call to action for peace, and 
not least through the World Health Organization, 
which is mobilizing resources to promote the 
conditions of peace. 



' Bulletin of Oct. 4, 1954, p. 471. 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



U.S. Views on Soviet Disarmament Proposal 



Speaking before the General Assembly on Sep- 
tember 30, the Soviet Representative, Andrei 
Vyshinsky, introduced a disarnfiam^nt pi^oposal 
which he requested the Assembly to add to its 
agenda. On October 6 the Assembly voted unani- 
mously to include the item, and on October 11 
Convmittee I {Political and Security) began de- 
bate on the Soviet proposal. Following are a state- 
ment released to the press by Henry Cabot Lodge, 
Jr., U.S. Representative to the General Assembly, 
following Mr. VyshinsJcy^s speech before the As- 
sembly; two statements in Committee I by U.S. 
Representative James J. Wadsworth/ and the text 
of the Soviet draft resolution. 

STATEMENT BY MR. LODGE 

U.S. delegation press release 1965 dated September 80 

The bulk of the Vyshinsky speech was a violent 
attack, filled with wild inaccuracies, on the United 
States in an effort to smear us as plotters of a 
preventive war. It was as reckless as Secretary 
Dulles' speech was moderate.^ The world knows 
President Eisenhower and how utterly he is op- 



posed to a preventive war. The world will there- 
fore repudiate and deplore this particularly un- 
savory bit of Soviet mudslinging. 

The Vyshinsky proposal on disarmament will, 
of course, receive our careful and earnest consid- 
eration. We are glad to see that the proposal 
seems to denote something of a change in the 
attitude of the U.S.S.R. toward two of the im- 
portant principles which the United States has 
been trying for years to get the Soviets to accept. 
These are, first, that nuclear weapons, on the one 
hand, and conventional armaments and armed 
forces, on the other, are all related parts of the 
total picture and must be dealt with in a 
balanced fashion; second, disarmament must be 
subject to effective inspection and control which 
will protect the security of all states. 

At any rate, Mr. Vyshinsky's proposal appears 
to offer more hope than the Soviet attitude ex- 
pressed by Mr. Malik in London just this past 
summer when he rejected out of hand the British- 
French memorandum,^ which included the two im- 
portant principles I have just mentioned. 



' Bulletin of Oct. 4, 1954, p. 471. 
Ocfober 25, 1954 



' Jbid., Aug. 2, 1954, p. 182. 



619 



Of course, the decisive test is how far the Soviet 
Union has really moved from its previous rigid 
position on disarmament. We sliall get the an- 
swer to this question when Mr. Vyshinsky's pro- 
posal is studied and discussed in detail. Mean- 
time, I wish to emphasize that the United States 
will consider this proposal objectively and with 
the sincere hope that it will prove to be a real step 
toward a comprehensive, effective, and workable 
disarmament, 

STATEMENTS BY MR. WADSWORTH 

U.S. delegation press release 1973 dated October 12 

The First Committee of the General Assembly 
is entering its ninth year of activity — and its ninth 
year of hard work on the stubborn problem of 
disarmament. All these years of discussion have 
not brought forth a single agreement to scrap one 
gun or tank or bomb or to discharge one soldier. 

People all over the world, who know little of 
world politics, know this disheartening fact, yet 
it is in response to their will to peace that we con- 
tinue to seek a solution. Our failure in the past 
is due mainly to the unhappy fact that we chose 
to tackle the problem of armaments in a period 
torn with conflict. The two sides locked in tliis 
conflict have not been disposed to trust each other. 
Least of all has it seemed wise to trust the side 
whose extreme secretiveness is a part of its way of 
life. 

How can we establish the mutual trust on which 
disarmament should rest? 

We submit that we cannot establish trust on 
either side by demanding and repeating "I prom- 
ise — trust me." Trust is a most delicate quality, 
and it cannot be shouted into existence. In a mat- 
ter as vital as armaments we can establish it only 
if both sides first agree on a fair plan of action 
and then carry out each step of tliat plan on sched- 
ule and in jilain sight of each other. 

It is a most difficult task, but it is possible. If 
it is carried out in good faith, one of its chief re- 
sults will be the growth of the very quality of 
trust whose absence has paralyzed our efforts up 
to now. 

The Basic United States Position 

There are four basic ideas which have animated 
the United States from the very beginning of the 
disarmament discussions in the United Nations. 

Firnt, the United States wants disarmament. 



The United States was one of the countries which 
proposed article 26 of the United Nations Charter, 
calling for "the establislmient and maintenance of 
international peace and security with the least di- 
version for armaments of the world's hmnan and 
economic resources." We want disarmament that 
will disarm. We want more than a mere toast 
where states clink their glasses and drink to the 
health of disarmament. We want disarmament 
that will work. 

Second, we believe that there is more than one 
path by which the world can progress toward 
disarmament. Over the years we have marked 
out a number of paths on any or all of which we 
could make a start toward disarmament : control- 
ling atomic energy- : limiting the size of the armed 
forces of the Great Powers; a system of disclosure 
of all armed forces and all armaments with veri- 
fication by an international organ. AVe have 
always i-ecognized that it is impossible to solve 
this problem unless all the Great Powers agree on 
the solution. That is why we have suggested 
many avenues of discussion in the hope that, even 
if we could not reach full agreement with the 
Soviet Union, at least we could narrow the dif- 
ferences that separate us. That has been our 
approach in the past, and it is still our approach. 
Third, we want the world to be rid of nuclear 
weapons. The world will not be rid of nuclear 
weapons by merely shouting from the roof tops 
that they are prohibited or that they will not be 
used wliile one nation behind its Iron Curtain 
continues to stockpile them. The United States 
is not going to use atomic weapons or any other 
weapons in violation of the United Nations 
Charter. The United States is not going to use 
atomic weapons or any other weapons except in 
defense against aggression. That is our pledge, 
and it is also the pledge of every member of the 
United Nations including the U. S. S. K. That 
pledge, however, gives security to no one so long 
as one of the chief countries making the pledge 
has its Iron Curtain behind which it can prepare 
to violate its pledge without fear of detection. 

Fourth, we want world peace. We know that 
another war would be a catastrophe. We recog- 
nize that in the past arms races have preceded 
armed attack by aggressor nations. At the same 
time we cannot stop an arms race unless all the 
racers stop running, and we cannot know wliether 
all the racers have stopped running if one of them 



620 



Depor/menf of %taie Bulletin 



insists on runninf^ on a concealed trnck. For the 
free world to stop arniiiig while the Soviet Union 
keeps on increasing its strength would be an 
invitation to the ver\- war we seek to avoid and to 
the destruction of freedom. 

These are the lessons of hard experience. We 
think of them as we continue our search for a dis- 
armament that gives security to all. Thinking of 
these lessons, we hold that secure disarmament in 
a world without trust requires two things above 
all. 

First, it must cover all arnuiments in a single 
plan — for bayonets and high explosives are still 
deadly in this atomic age. 

Second, it must contain safeguards so that each 
side actually disarms in plain sight of the other, 
with the firm certainty that all pledges are l)eing 
carried out every step of the way. 

We believe that all states will agree generally 
with these principles. Why is it that we have 
been unable to translate these i)rinciplcs into a 
•workable disarmament program? The record of 
the Disiirmament Conmiission and its Subcom- 
mittee reveals a great deal on this subject. Let 
us now discuss it. 

The Record in the Disarmament Commission in 1954 

We agree with the Soviet suggestion that as 
far as possible we should forget the past, and we 
shall therefore devote far less time to the past 
than did the Soviet representative. 

The disamiament resolution passed by the 
Eighth General Assembly was notable for its sixth 
paragraph, which suggested that the Disarmament 
Conunission study the desirability of establishing 
a Subcommittee consisting of the representatives 
of the powers principally involved to seek in 
private an acceptable solution and report to the 
Disarmament Comnnission.^ 

Last April the Disarmament Commission, in 
conformity with this resolution, set up such a 
Subcommittee consisting of the Soviet Union, 
United Kingdom, France, Canada, and the United 
States. This Subcommittee met in London, in 
private and as we hoped, free from the tempta- 
tions of propaganda. Then the Subcommittee 
made a report to the Disarmament Commission.'' 
As a part of its report, the Subconmiittee made 



' Ibid., Dec. 14. 19.53, p. 838. 
* Ibid., Aug. 2, 19.54, p. 177. 



jniblic the entire records of the London meetings. 
The world is now in a iMJsition to judge the prog- 
ress or lack of progress at these private meetings 
and to determine the responsibility for their suc- 
cess or failure. 

The plain motive of the Eighth General Assem- 
bly in suggesting once again private meetings of 
a few powei-s was to produce new approaches to 
disarmament — approaches which would have at 
least some hope of narrowing the differences that 
have separated the Soviet Union from the free 
world. Let us examine the record of the Sub- 
committee of Five to see to what extent these 
hopes were fulfilled. 

At the very lirst meeting the Soviet Union sub- 
mitted a disarmament proposal, but it was not 
a new proposal. It was, word for word, the pro- 
posal which the Soviet Union had submitted to 
the Eighth General Assembly and which the As- 
sembly had found unacceptable. This was cer- 
tainly a discouraging start, and the same pattern 
prevailed throughout the discussions. The rep- 
resentative of New Zealand, in the Disarmament 
Conunission discussions in July, aptly character- 
ized the Soviet attitude as one of "stony immo- 
bility." 

In contrast, the other members of the Subcom- 
mittee tried to explore two avenues of approach 
to disarmament which had never before received 
any thorough treatment in the United Nations. 
The United States submitted a working paper on 
the establishment of an international control 
organ with appropriate rights, powers, and f unc-, 
tions. In presenting this paper we stressed that 
we were not putting forward a rigid position with 
the thought that all other states "should either 
take it or leave it." The United States repre- 
sentative said : "Let us think of this paper merely 
as one approach in an attempt to come to grips 
with basic issues of substance. From the dis- 
cussions of specific problems we hope to narrow 
the difference between us and perhaps arrive at a 
position which all of us can approve." Further- 
more we pointed out that the control organ, as 
we drew it up, would be as applicable to a program 
based upon Soviet concepts sketched over the past 
several years as it was to the U.S. program. 

Despite our efforts, the Soviet representative 
refused all serious discussions of our paper. As a 
matter of fact, he never got any further than the 
fii-st paragraph, which referred to the General 



October 25, 1954 



621 



Assembly resolution of January 11, 1952, whicli 
the U.S.S.R. had opposed. 

The second new avenue of approach was con- 
tained in the British-French memorandum of 
June 11 which has been so much in the news in 
recent weeks. This dealt with the phasing and 
timing of the chief elements of a disarmament 
program. The representatives of the United 
Kingdom and France have fully explained these 
proposals, and I shall not repeat their explana- 
tions. The United States supported and still sup- 
ports the proposals. 

In London the Soviet Union refused to discuss 
the British-French proposals and, as in the case 
of the U.S. suggestion, never got beyond the first 
paragraph. This was one of the comments by the 
Soviet representative : "It is perfectly obvious that 
the proposal of the United Kingdom and France 
and supported by the United States does not pro- 
vide at all for the prohibition of atomic weapons 
but is designed to justify their use. The adoption 
of such a proposal would in no way contribute to 
a slackening of international tensions or to the 
removal of the dangers of an atomic war. Wliat 
is more it could lull the vigilance of the peoples 
toward this danger." 

Now, after all, the Soviet representative at tliis 
General Assembly has introduced a resolution 
suggesting that these proposals of France and the 
United Kingdom be used as a basis for an inter- 
national disarmament treaty. 

We are indeed gratified that the Soviet Union 
has apparently changed its views and now recog- 
nizes the genuine value of the British-French pro- 
posals a.s a fresh approach to this great problem. 
But the change in position — and we hope it is a 
change — did not manifest itself until Septem- 
ber 30. 

The Soviet Proposal 

The first ray of hope that we have received in 
many years from the Soviet Union was the pro- 
posal made by tlie Soviet representative to this As- 
sembly on that date. That ray was considerably 
dimmed, though not extinguished, by Mr. Vyshin- 
sky's statement yesterday. We have studied the 
proposal carefully and, we believe, objectively. 
What I am going to say now reflects our initial 
impressions of a proposal which at several key 
points has been and remains obscure in its mean- 
ing. Our impression may readily be altered as a 



result of the discussions in this committee and later 
in the Disarmament Commission. 

Firsts we recognize that on one and only one im- 
portant matter the Soviet has taken a clear and 
unambiguous stand which somewhat narrows the 
differences which have separated the Soviet Union 
from the free world. The Soviet Union now con- 
cedes that 50 percent of the agreed reduction in 
amied forces and conventional armaments may 
take place before any action to prohibit nuclear 
weapons. This is paragraph I (2) (a) of the 
Soviet proposal. 

Second, in paragraph I (2) (c) the Soviet Un- 
ion calls for "inspection on a continuing basis to 
the extent necessary to ensure implementation of 
the convention by all states." This is one of the 
obscure points on which further discussion is re- 
quired. It could be a great improvement over the 
1952 Soviet formula for an international control 
organ that "shall have the right to conduct inspec- 
tion on a continuing basis, but it shall not be en- 
titled to interfere in the domestic affairs of states." 

Any control organ with powers "to the extent 
necessary to ensure implementation of the conven- 
tion" must clearly have the full run of a country. 
Mr. Vyshinsky pointed out that during the war 
button factories in the Soviet Union manufactured 
munitions. The International Control Commis- 
sion must therefore have the right to inspect but- 
ton factories in order to determine whether or not 
they are manufacturing munitions. This is pre- 
cisely what the Soviet delegate denied to us during 
the London talks. We had hoped that this resolu- 
tion indicated a change in position. However, if 
we interpret correctly Mr. Vyshinsky's statement 
of yesterday, any country can frustrate the in- 
spectors simply by posting on a mimitions factory 
a sign reading "Keep out — this factory makes but- 
tons." 

Third, a commission with adequate powers 
would of necessity also have the authority to take 
effective action whenever it found a violation. We 
do not infer by this that the commission would 
have its own army which could be used to punish 
a violator. It would, however, have certain pow- 
ers, some of which we enumerated in our paper on 
the international control organ which we sub- 
mitted to the Subcommittee of the Disarmament 
Commission in London. These powers included , 
the right to suspend allocations of fissionable ma- " 
terials to an offending country and to close down 



622 



Department of State Bulletin 



factories utilizing fissionable materials in that 
country. 

The Soviet repi-esontative in London stated cate- 
gorically that tlie control commission could do 
nothing beyond referring the violations to the 
Security Council, where each of tlie permanent 
members is in a position to veto all action. We 
hoped that tlie new Soviet proposals, with their 
language about full powers to ensure implementa- 
tion of the treaty, might represent a change in 
Soviet position. Mr. Vyshinsky yesterday very 
tlioroughly dispelled that hope. He made it clear 
tliat the control org-an, where tliere is no veto, could 
do nothing to punish violations. No violations 
can be punislied except with the consent of tlie 
Soviet Union, ai-med with its veto power. 

Fourth, there was one issue in London which 
perhaps received more extended discussion than 
any other — the issue of the relationship in time 
between the prohibition of nuclear weapons and 
the institution of international control. The So- 
viet Union in London took their traditional line 
that the prohibition of atomic weapons and the 
institution of controls should be simultaneous. 
"Simultaneous" is a pretty word, but, as we have 
pointed out on many occasions, in this context it 
is literally meaningless. 

The prohibition of atomic weapons is a single 
act. On the other hand the institution of controls 
is a long series of acts. The real question is this: 
At what point during the development of the con- 
trol organ would prohibition of atomic weapons 
take place ? 

The United States, United Kingdom, France, 
and Canada all took the position at London which 
was set forth in the British-French memorandum : 
that the proliibition of nuclear weapons would 
take place as soon as but no sooner than when the 
control organ was in a position to assure that the 
prohibition would actually prohibit. The Soviet 
Union, on the other hand, took the position that 
in fact the prohibition should take place as soon 
as there was agreement that there should be a con- 
trol organ. This is like saying: "Since we now 
agree to build a house, let's move in right away." 
An agreement will not keep the rain out. 

Mr. Vyshinsky, in his statement yesterday, gave 
a new meaning to the word "simultaneous." He 
said that the prohibition of nuclear weapons and 
the institution of international controls must be 
completed within the same period. In other 



words, we must sinniltaneously complete build- 
ing the house and moving into it. This, of course, 
is an improvement on moving into the house be- 
fore it is built. But it raises some questions. 
What if we agi-ee to move in and the house never 
gets built? What if the time limit for building 
expires, and the house is unfinished — do we have 
to move in anyway? In short, just how nmch of 
an improvement the new position is depends upon 
the detailed schedules of building and of moving 
in. Mr. Vyshinsky has substituted for his old 
formula which was impossible a new formula 
which is merely vague and requires further study. 

Fifth, another example of this need for study 
is paragraph I (1) (a), which speaks of agreed 
levels and reduction of armaments from the level 
of December 31, 1953. We studied this provision 
carefully in the English and French translations. 
Frankly, it has no meaning whatever. I am not 
sure that I understood Mr. Vyshinsky's explana- 
tion of this paragraph. As Mr. Vyshinsky point- 
ed out when we listened to the translations, con- 
ditions are far from the optimum. However, if 
I understood correctly, it is now fairly apparent 
that the Soviet Union proposes that the reductions 
start from December 31, 1953, levels and take 
place in two stages, 50 percent of the reductions to 
be in each stage. We are still unclear as to where 
the process ends. How do we detennine the levels 
to which the armed forces and armaments are to 
be reduced? We still do not know whether the 
Soviet Union continues to insist upon flat per- 
centage reductions from December 31, 1953, levels. 
Mr. Vyshinsky said that he was not pressing for 
percentage reductions at this time. He did not 
indicate that he had abandoned his previous re- 
quests or that he was accepting any alternative 
formula. 

We are still hopeful that these Soviet proposals 
represent an important step in the direction of an 
agreed disarmament program. They must, how- 
ever, be clarified and elaborated. Large segments 
of the disarmament program are not touched at 
all in these proposals. This was clearly pointed 
out by the representatives of the United Kingdom 
and France. There is a tremendous amount of 
hard labor ahead of us before we can turn any 
of the proposals now before the General Assembly 
or the Disarmament Commission into a practical 
disarmament program. 

This is a teclmical subject. We do not believe 



Ocfober 25, 1954 



623 



that the General Assembly is the forum for going 
into the technical details. We believe that the 
very fact that the Soviet Union has seen fit to 
present these new proposals underlines the wis- 
dom of the Eighth General Assembly in suggest- 
ing private discussions by the powers principally 
involved. We would support the reactivation of 
the Subcommittee to deal with these Soviet pro- 
posals and the other disarmament proposals which 
are before the Disarmament Commission. In 
short, we believe that the Soviet proposals should 
be studied in the hope that many of them in some 
form will be embodied in a disarmament treaty. 
We definitely do not reject them. 

The Outlook 

During the Subcommittee meetings in London 
and again during the disarmament discussions 
in New York, we pointed out that the Soviet ap- 
proach to disarmament had three main features 
which not only prevented agreement but also de- 
stroyed the possibility of genuine negotiation. Let 
us review those features and consider to what ex- 
tent they are applicable to the new Soviet pro- 
posals. In the -first place, the Soviet Union in 
the past has confined itself to proposals too vague 
to have any meaning. Ambassador [Morehead] 
Patterson in the Disarmament Subcommittee aptly 
likened the Soviet proposals to a book with a 
table of contents followed by nothing but blank 
pages. We are sorry to say that the current 
Soviet proposal fits this description. It will 
require much elaboration before it will be really 
meaningful. 

Second, the Soviet proposals in the past have 
been long on pledges and short on safeguards to 
insure that the Soviet Union would obsei-ve its 
pledges. It has refused any type of international 
control which would result in a genuine lifting of 
the Iron Curtain. The present proposals use 
language sufficiently broad so that it would be 
possible for the Soviet Union, under this pro- 
posal, to agree to genuine and effective safeguards. 
Wliether it in fact is prepared to take such a step 
will probably be determined only after we get 
down to detailed discussions. 

Third, even if we assume full Soviet observance 
of pledges, the past program would have had as 
its result the disarmament of the free world with- 
out disarming the Soviet L^nion. Thus under their 
previous plans the most important elements of 



strength of the free world — its nuclear weapons 
and its bases — would be eliminated. On the other 
hand, the most important features of Soviet 
strength — its vast armies and its conventional 
weapons — would be merely reduced by one-third. 
From this standpoint, the present proposal is a 
distinct improvement on previous proposals. It 
is entirely possible that when it is elaborated it 
would be consistent with the security of other 
states. Again, we cannot tell this until we can find 
out what it means. I ^ 

If the Soviet Union has really abandoned its ; 
policy of disarming the free world without dis- 
arming the Soviet bloc, this is indeed a change in 
policy. The previous policy, as we pointed out in 
the Disarmament Commission, was far older than 
the Disarmament Commission or than the United 
Nations. In fact it was a Communist policy even ^ 
before there was a Soviet Union. We can find it in 
the writings of Lenin as early as 1916 when he 
said : j 

Only after the proletariat has disarmed the bourgeoisie . 
will it be able, without destroying its world historical 
mission, to throw all armament on the scrap heap; the 
proletariat will undoubtedly do this, but only when this [ 
condition has been fulfilled, certainly not before. 

Until the Soviet Union shows some regard for 
the security of other states, until the Soviet Union 
looks on disarmament as a method of avoiding 
war and of improving living conditions of man- 
kind rather than as a steppingstone to strategic 
advantages for itself, there can be no progress to- 
ward disarmament. The United States is willing 
and indeed eager in the light of the developments 
of the past week to engage in further talks and 
negotiations which may give promise of progress 
toward the goal of world peace. We hope that 
the world will view realistically any further ne- 
gotiations and discussions and will not seek prema- 
turely to paint a bright picture of progi'ess which 
might turn out to be a mirage. 

Conclusions 

In conclusion let me reaffirm our wish to explore 
all avenues where there is a genuine prospect of 
progress toward disarmament that will really dis- 
arm. The President of the United States, in his 
inaugural address, stated certain fixed principles 
which would guide him in pleading our just cause 
before the bar of history and in pressing our labor 
for world peace. The very first of these princi- 
ples contains the following language : 



624 



Deparfment of State Bulletin 



We stand ready to en^'nge with auy and all others in 
■Joint effort to remove the causes of mutual fear and dis- 
trust among nations and so to make possible drastic re- 
duction of armaments. Tlie sole requisites for under- 
taking such effort are that, in their purpose, they lie aimed 
logically and honestly toward secure peace lor all ; and 
that, in their result, they provide methods by which every 
participating nation will prove good faith In carrying out 
its pledge. 

Tlie present Soviet proposals do appear to open 
an avenue for f urtlier discussion. It must be em- 
pliasized, however, that these proposals, like past 
Soviet proposals, are merely a beginning. There 
are many important parts of a disarmament pro- 
gram vrhich these proposals do not touch at all, 
and even vrhere the Soviet proposals suggest a 
solution in most instances that solution is too vague 
and ambiguous for the world to judge its merits. 
We hope there has been a real change in the Soviet 
outlook, a change that will make possible meas- 
urable progress toward the goal for which every- 
one must strive — a genuine and lasting peace. 

D.S. delegation press release 1976 dated October 12 

Just a very brief statement on the rather re- 
markable statement we have just heard from the 
distinguished delegate from the Soviet Union. 

He started out by talking about inaccuracies in 
my own statement and wound up by talking about 
a great many things on which I never had any- 
thing to say. However, I think that all through 
my prepared remarks the delegate of the Soviet 
Union will find that, due to the shortness of the 
time since he completed his speech of yesterday, I 
said perhaps I misjudged him, perhaps I misun- 
derstood him, if I understood him correctly. In 
those places where he has actually corrected me, I 
think that I should thank him for this correction. 
The interpretations, however, which one places 
upon the English language as it comes through the 
earphones is one thing as opposed to the corrected 
verbatim report which we will, of course, get later 
on. However, there are one or two points which 
3klr. Vyshinsky made which I feel might be worthy 
of very brief comment because I feel that we 
should not keep the committee sitting too long over 
this sort of an altercation. 

In the first place, in attempting to deny some 
of the things I have said, Mr. Vyshinsky did con- 
firm two of the things I said. First, that any 
action to deal with violations of a disarmament 
plan must be subject to the Security Council and 
its veto; second, he confirmed my contention that 



he had not completely abandoned liis i)ievious de- 
mands for a flat percentage re<luction. Perhaps 
Mr. Vyshinsky's translation when I was talking 
on that particular line might have been subject to 
misinterpretation, but my recollection is that I 
said that he did not press for his reduction plan 
at this time — and I think that that was an accurate 
statement. 

I would also agree very thoroughly witli my 
distinguished colleague from the Soviet Union 
that there is a vast amount of difference between 
opposition and discussion on the one hand and re- 
jection on the other. I stand, however, by my 
statement made in my prepared remarks and 
would ask the members of this committee to read 
the record of the London meetings in which Mr. 
Malik of the Soviet Union did in fact categorically 
reject the points that were made by the United 
States in its working paper on a control organ and 
by the Franco-British proposal. 

Finally, I believe with Mr. Vyshinsky that it 
might be of considerable value to all the members 
of this committee to read the entire text of Mr. 
Lenin's article on disarmament from which I 
quoted. At least I have avoided the accusation 
that the quote was incorrect; according to Mr. 
Vyshinsky it was taken out of context. But at 
the same time I feel that it is a revealing quote, 
and it is something which has been held fast to on 
the part of the Soviet Union in disarmament talks 
throughout most of our past several years. 

Altogether I believe that colloquies of this type 
are extremely valuable to the members of the 
committee. It is, of course, possible to attempt 
to confuse and befog the issue by talking about 
matters having nothing to do with the points at 
issue. However, at the same time, that also re- 
veals the weakness of the argument of the person 
doing it. 



SOVIET DRAFT RESOLUTION 

Following is the text of the disarmament pro- 
posal which the Soviet representative, Andrei 
Vyshinsky, introduced in a speech to the General 
Assembly on Septe?nier 30 and which he requested 
the Assembly to add to its agenda. On October 6 
the Assemhh) voted unanimously to include the 
item. 

U.N. doc. A/2742 dated September 30 

I. The General Assembly instructs the United Nations 
Disarmament Commission to prepare and submit for con- 



Ocfober 25, T954 



625 



firmatlon by the Security Council a draft international 
convention (treaty) designed to strengthen peace and 
increase international security and providing for the pro- 
hibition of atomic, hydrogen and other weapons of mass 
destruction and their elimination from the armaments 
of States, a substantial reduction in armaments and the 
establishment of international control over the imple- 
mentation of these decisions on the basis of the French 
and United Kingdom proposals of 11 June 1954. 

Accordingly, the convention (treaty) should contain 
the following basic provisions : 

(1) The following measures shall be taken simultane- 
ously : 

(a) In the course of six months (or one year). States 
shall reduce their armaments, armed forces and budgetary 
appropriations for military requirements to the extent 
of 50 per cent of the asreed levels. Armaments and armed 
forces shall be reduced from the strength of armaments 
and armed forces existing on 31 December lO.'iS, and ap- 
propriations shall be reduced from the amount of actual 
expenditure on military requirements during the year end- 
ing 31 December 1953. 

(b) For the purposes of supervising the fulfilment by 
States of the obligations in connexion with the reduction 
of armaments and armed forces provided for in sub-para- 
graph (a), a temporary international control commission 
shall be established under the Security Council with the 
right to require States to provide the necessary informa- 
tion on the measures taken by them to reduce armaments 
and armed forces. The commission shall take the nec- 
essary steps to supei-vlse the fulfilment by States of the 
obligations assumed by them in connexion with the re- 
duction of armaments, armed forces and appropriations 
for military requirements. States shall periodically sup- 
ply the commission at established intervals with informa- 
tion concerning the implementation of the measures pro- 
vided for in the convention. 

(2) On completion of the measures referred to in para- 
graph (1), the following measures shall be taken simul- 
taneously : 

(a) In the course of six months (or one year). States 
shall reduce their armaments, armed forces and budgetary 
appropriations for military requirements by the remaining 
50 per cent of the agreed levels from the strength of arma- 
ments and armed forces existing on ,31 December 1953, 
and shall reduce their appropriations from the amount of 
actual expenditure on military requirements during the 
year 31 December 19.53. 

(b) A complete prohibition of atomic, hydrogen and 
other weapons of ma.ss destruction shall be carried into 
effect, the production of such weapons shall be discon- 
tinued and they shall be entirely eliminated from the 
armaments of States ; all existing atomic materials shall 
be used only for peaceful purposes. 

The carrying out of these measures must be completed 
not later than the carrying out of the measures taken for 
the reduction of armaments and armed forces referred to 
in paragraph (2) (a), and the production of atomic and 
hydrogen weapons shall cease immediately, as soon as a 
start is made with the reduction of armaments, armed 



forces and appropriations for military requirements in 
respect of the remaining 50 per cent of the agreed stand- 
ards. 

( c ) States shall institute a standing international organ 
for the supervision of the implementation of the con- 
vention (treaty) on the prohibition of atomic, hydrogen 
and other weapons of mass destruction, the discontinuance 
of the production of these weapons and their elimination 
from the armaments of States and the reduction of arma- 
ments, armed forces and appropriations for military re- 
quirements. 

This international organ shall have full powers of 
supervision, including the power of inspection on a con- 
tinuing basis to the extent neces.sary to ensure imple- 
mentation of the convention by all States. 

II. In connexion with the proposal concerning the pro- 
hibition of the "use of nuclear weapons except in defence 
against aggression" in the Franco-British memorandum 
of 11 June 1954, the General Assembly instructs the 
United Nations Disarmament Commission to study and 
clarify this question and submit its recommendations. 



International Financing of 
Economic Development 

Statement by Roger W. Straus 

UjS. Representative to the General Assembly'^ 

Allow me to take this opportunity to acknowl- 
edge my great appreciation to be associated in the 
work of tills Committee with the distinguished 
men and women constituting its membership. I 
come here not as a trained economist, not as a 
government official. I come as a businessman, 
who, for the last 40 years, has been associated with 
a business organization that has operated in many 
parts of the world. It has contributed markedly 
to the economic development of some. Through 
this experience I have had firsthand opporttmity 
to observe some of the opportunities, needs, and 
problems which will be the subject of our discus- 
sions in this Committee. 

In his address before the 10th Inter- American 
Conference at Caracas early this year,^ our Secre- 
tary of State pointed out that, in today's interre- 
lated world, "No government adequately serves its 
own people unless it also is concerned with well- 
being in other coimtries." Obviously, no countiy 
can divorce itself from the problem presented by 



'Made in Committee II (Economic and Financial) on 
Oct. 8 (U.S. delegation press release 1972). 
= BuiXETiN of Mar. 15, 1954, p. 379. 



626 



Department of State Bulletin 



ho existence of extremely low standards of living 
. liupe areas of the world. The postwar yeare 
liavo witnessed a growing realization tliat the at- 
f;Kk on poverty, disease, and ignorance calls for 
iimiierative effort on the part of all of us. This 
italization is a new and vital force in international 
relations. 

All of us must join in every practical way to 
bring our knowledge, our science, and our tools to 
bear upon this problem. Nevertheless, since eco- 

ijnoinic and social progress depends primarily on the 
! efforts of tJie people concerned, each country must 
deride for itself what it is prepared to do about its 
own e. cmomic development. Each country must 
lie. hie for itself what institutions it will encourage 
to bring about the production of the things its peo- 
ple want. Each country must itself determine 
what steps it is prepared to take to attract outside 
capital to help with the job. 

In my own country, our traditional policy has 
been to develop our economy through private en- 
terprise. This emphasis on individual freedom 
and on the constructive force of individual ini- 
tiative is a basic part of our philosophy. It is this 
system which has generated the economic vitality 
which has been a mainspring of our economic de- 
velopment. 

Wliile we are convinced that the fullest possible 
exercise of private initiative is the basis of sound 
economic development, we are, at the same time, 
aware that it cannot be offered as a panacea for 
all economic ills. 

In many underdeveloped countries, the first 
need is for basic development in such fields as 
transport, power, communications, education, and 
public health. 

To provide the economy with this so-called 
"overhead capital" often involves large-scale in- 
vestment in projects which, at least in their work- 
ing stages, are not self-liquidating. The fields of 
education and public health have been tradition- 
ally regarded as largely the responsibility of gov- 
ei-nment. In other fields, such as transport, power, 
and communications, investment can often be pro- 
vided by the joint effort of government and private 
enterprise when, for one reason or another, private 
capital is not available in sufficient quantities. In 
other instances, the Government will find it ad- 
visable to assume the entire responsibility. 
Clearly, so long as the problem of building es- 
sential basic facilities in underdeveloped areas re- 



mains so important, we must continue to be con- 
cerned with the problems of public financing. 

Mr. Chairman, we shall later in our discussions 
be con.sidering various specific ways and means of 
assisting the economic development of underde- 
veloped countries. At this time, I should like 
only to touch upon some general aspects of the 
ItrobU'm without going into those matters with 
which we shall be dealing in detail later on. 

It has often been argued that the financial needs 
of economic development have outrun the capital 
available to underdeveloped countries; that the 
lack of funds is, if not the most important, one of 
the important limits on the rate of economic de- 
velopment. I do not intend at tliis time to analyze 
the accuracy of this generalization. Later in our 
deliberations, I hope to have an opportunity to 
discuss the prospects for the international flow 
of capital if appropriate opportunities are avail- 
able. But I would, in this connection, like to 
quote from a statement made by the Governor 
from Cuba at the meeting of the Board of Gov- 
ernors of the International Bank in Washington 
last month. The Governor from Cuba said : 

I can say without hesitation that there is more money 
ready to be lent by the Bank than there are projects 
ready to receive loans from the Bank. Our main dilfi- 
culty has been not the question of raising suflBcient money 
for financing development projects but the problem of 
having countries submit for our consideration good, worth- 
while, bankable projects. The Bank is fully aware of 
this bottleneck, and tries to help in every possible way the 
less developed countries to get proper technical and finan- 
cial assistance for the preparation and presentation of 
good projects. But I can say that no project has failed 
to obtain from the Bank the necessary financial assistance 
for lack of funds. 

Expanding Activities of International Bank 

The Annual Report of the International Bank 
issued just a few weeks ago tells an encouraging 
story of expanding bank activity which is re- 
flected in the economic and social growth of its 
member countries. During the fiscal year ending 
Jime 30, 1954, the bank made 26 loans, equivalent 
to about $325 million. These were more loans, 
and a greater amount of lending, than in any 
previous year of the bank's existence. Moreover, 
thus far in the present fiscal year, the rate of 
lending has kept pace with this new record, and 
the total of loans made by the bank has now passed 
the $2 billion mark, with almost three-quarters 
of the last billion going to underdeveloped areas. 



October 25, 1954 



627 



These loans have been made to 34 member 
countries. 

There is another development which, I think, 
has significant implications for the future finan- 
cing of economic development. In the years fol- 
lowing the war, the demands of reconstruction and 
investment at home prevented Western Europe 
from playing its traditional role as an exporter 
of capital, except in very limited fashion. This 
situation, together with Western Europe's own 
need for assistance, was one of the important fac- 
tors hampering the growth of the world economy 
in the postwar years. 

There are signs that this condition is rapidly 
changing. For example, between June 1953 and 
June 1954, Western European currencies to the 
equivalent of some $110 million became available 
in one form or another for lending by the Inter- 
national Bank. 

In fact, what might be called the greater inter- 
nationalization of the financial resources available 
to assist in economic development is becoming 
quite evident. During the past fiscal year, lend- 
able funds available to the International Bank 
increased by $310 million. Of this amount, al- 
most $190 million, or 61 percent, came from sources 
outside the United States. The last bond issue of 
the International Bank of $50 million was ovei*- 
subscribed by $28 million and had to be allocated 
among bidders from 23 countries. For the first 
time in the history of the financial world, a dollar 
issue has been sold entirely outside the United 
States. This is indeed a hopeful augury for inter- 
national financing of economic development. 

The contribution of the International Bank to 
the financing of the economic development of 
underdeveloped countries, substantial though it 
may be, is but a part of the story of the coopera- 
tive effort of the free world in this direction. We 
shall undoubtedly be hearing from the representa- 
tives of other countries about the contributions 
they have found it possible to make to assist the 
underdeveloped areas. The efforts and contribu- 
tions of my own country have often been indicated 
in this and other forums of the United Nations. 

For this fiscal year, the Congress has authorized 
$300 million for economic assistance to underde- 
veloped countries. This amount will raise the 
total of assistance extended to the underdeveloped 
areas by the American people since World War II 
to about $61^ billion. 



During the deliberations of this Committee last 
year there was some speculation as to the future 
role of the Export-Import Bank in the field of 
economic development. In this connection, I 
should like to recall one of the statements con- , 
tained in the message of President Eisenhower to ' 
the Congress on March 30, 1954.' In this message 
the President, referring to the Export-Import 
Bank, stated that the bank will consider on their 
merits applications for development projects 
which are not being made by the International 
Baiik and which meet the usual requirements of 
export-import lending. I think the statement in- 
dicates that the Export-Import Bank will be in a 
position to continue to play an active role in the 
development field. In this connection, some of 
you may be aware that the Congress recently au- 
thorized an increase of half a billion dollars in the 
lending authority of the bank. This action raised 
the bank's total lending authority to $5 billion. 
This same legislation also provided for a reor- 
ganization of the bank designed to make it a more 
effective operating instrument. 

Agricultural Trade Act 

I should like to mention one other way in which 
the United States can now help provide additional 
assistance for economic development. 

Underdeveloped countries wishing to carry out 
ambitious development projects are often faced 
with the problem of providing at the same time 
an increased supply of consmner goods to their 
populations. Unless they can do so, inflation may 
well result, with all its pernicious effects on the 
very process of economic development itself. To 
illustrate, some countries in South and Southeast 
Asia, where the problem of surplus labor is acute, 
have been deterred from expanding their invest- 
ment programs and putting this labor to work 
because they were not able to provide additional 
amounts of consumer goods. 

In general, the International Bank and our 
own Export-Import Bank have been prepared only 
to finance the cost of imported capital goods and 
industrial supplies. They have not, as a rule, 
been prepared to provide long-term loans for im- 
ports of consumer goods. 

As many of you are aware, our Congress has 
recently enacted the Agricultural Trade and De- 



■ Ibid., Apr. 19, 1954, p. 602. 



628 



Department of State Bulletin 



velopment Act. The purpose of tliis net is to 
ipnat>le tlie Govciniiient to use our iiirricultunil 
<?onuuodities to expand world trade. We believe 
4iat one of the truly constructive purposes for 
■which our surplus commodities can now he used is 
to help to promote economic development. We are 
prepared to make these commodities available to 
underdeveloped countries to help meet increased 
consumption demands arisin<r from their develop- 
ment projrrams. I should like to take a moment 
to indicate how this can be done. 

Under the provisions of the law, the United 
States Government is now authorized to sell its 
stocks of ajiricultural commodities for the local 
currency of the recipient country. Furthermore, 
the U.S. Government is authorized to lend back 

I to the buying country a substantial part of all such 
local currency received. In other words, undei'- 
developed countries can now secure assistance in 
importing increased supplies of such consumer 
goods as wheat, corn, cotton, fats, and oils, which 
they may need to procure to meet the increased 

' demands for consumer goods arising from acceler- 

i ated development operation. 

Such transactions envisaged in the Agricultural 

; Trade and Development Act can be mutually bene- 
ficial. Since development progi-ams may be ex- 
pected to lead to increased consumption, holdings 
of agricultural commodities now overhanging the 
market can be moved without disrupting normal 
markets or depressing world prices. Countries 
w hich, in other respects, are in a position to under- 
take new development projects and to put unem- 
ployed labor into productive employment can do 
~M without suffering the ill effects of inflation. 
Labor-using projects that may have been post- 
poned because they could not easily be financed 
can be given the priority they deserve. 

This new authority which the Congress has 
given us will run for a 3-year period. It is our 
hope that underdeveloped countries will take ad- 
vantage of this legislation to accelerate their eco- 
nomic development. 

Mr. Chairman, I think most of us would agree 
that the world has made important strides since 
the war in dealing with the problem of economic 
development. At the same time we are all, I am 
sure, acutely aware of the inmiense task still to 
be done. We cannot be content merely to look 
backward. It seems to me as a business executive, 
just as a manufacturer of automobiles is constantly 



trying to improve his already tried and tested 
models, so nuist we endeavor to make more effective 
our existing institutions and our existing metiiods 
of dealing with tliis problem. On the other hand, 
just as the autfmiobile manufacturer is also con- 
stantly searching for basically new designs, so 
must we be alert to new ways and means which 
have practical applications for the future. 

The peoples of the underdeveloped countries are 
eager for additional tools for economic growth. 
The compelling economic reasons for assisting 
the.se peoples to convert their aspirations into 
reality have often been analyzed, and I need not 
go into them at this time. But economic develop- 
ment has a larger significance. It is something 
which is good in it.self because it affects people, 
their dignity, and their freedom. Economic de- 
velopment can mean the difference between explo- 
sive tensions and stability, between apathy and 
hope, between serfdom and constructive citizen- 
ship. It can contribute to the development of a 
stable, democratic society of free men. 

These are powerful reasons for continued efforts 
by all of us to hasten the economic development of 
the underdeveloped counti-ies. 



U.S. Delegations to 
International Meetings 

Pan American Sanitary Conference and 
WHO Regional Committee Meeting 

The Department of State announced on October 
6 (press release 559) that the U.S. Govenunent 
would be represented at the Fourteenth Pan Am- 
erican Sanitary Conference and the Sixth Meeting 
of the Regional Committee of the World Health 
Organization at Santiago, Chile, October 8-22, 
1954, by the following delegation : 

Delegates 

W. Palmer Dearing, M.D., Chainnnii, Deputy Surgeon 
General, Public Health Service, Department of Health, 
Education and Welfare 

Frederick J. Brady, M.D., International Health Repre- 
.sentative. Public Health Service, Department of 
Health, Education and Welfare 

Howard B. Calderwood, Bureau of International Organ- 
ization Affairs, Department of State 

Advisers 

Roy Anduze, M.D., Commissioner of Health, Virgin la- 
lands Department of Health, Charlotte Amalie, Virgin 
Islands 



October 25, 1954 



629 



William Belton, Bureau of Inter-American Affairs, De- 
partment of State 
E. Ross Jenney, M.D., Chief of Health, Welfare and Hous- 
ing Field Party, Foreign Operations Administration, 
Santiago, Chile 
Juan A. Pons, M.D., Secretary of Health, Puerto Bico 

Department of Health, San Juan, Puerto Rico 
Walter W. Sohl, Jr., Secretary of Delegation, Bureau of 
International Organization Affairs, Department of 
State 
The Pan American Sanitary Conference is the 
supreme governing body of the Pan American 
Sanitary Organization (Paso), the international 
coordinating authority for public health in the 
Americas, and serves as the Regional Committee 
for the Americas of the World Health Organiza- 
tion. The Conference, which meets once in 4 
years, delegates its powers to the Directing Coim- 
cil, which meets yearly during the 3 years between 
Conferences. The Tliirteenth Pan American 
Sanitary Conference was held at Ciudad Trujillo, 
Dominican Eepublic, October 2-10, 1950. 

The Fourteenth Conference will plan the course 
of the Pan American Sanitary Organization for 
the next 4 years. Among the agenda items are 
the following: (1) The Director's reports— i. e. 
annual report, reviewing the Bureau's activities 
in 1953 ; and a 4-year report, from the beginning 
of 1950, for consideration of the Conference; (2) 
1955 program and budget; (3) malaria eradica- 
tion; (4) health reports of governments; (5) 
election of the Director of the Pan American San- 
itary Bureau for a 4-year term begimiing Febru- 
ary 1, 1955, and submission of his name to the 
World Health Organization in Geneva for con- 
firmation as Who Regional Director; and (6) 
Executive Committee nominations to fill vacancies 
on the 7-member Executive Committee, caused by 
the termination of the periods of office of Ecuador 
and Mexico. There will also be a series of tech- 
nical discussions in the form of seminars held con- 
currently with the Conference Session. The sub- 
jects chosen this year are (1) methods of improv- 
ing the reliability of raw statistical data required 
for health programs; (2) control of infant diar- 
rheas in the light of recent scientific progress; 
and (3) application of health-education methods 
in rural areas in Latin America. 



TREATY INFORMATION 



Current Actions 



MULTILATERAL 

International Rice Commission 

Amended Constitution of the International Rice Commis- 
sion and Rules of Procedure. Approved by the Seventh 
Session of the Fag Conference at Rome, December 10, 
1953. Entered into force December 10, 1953. 

Members of the Commission: 



United States 

Australia 

Burma 

Cambodia 

Ceylon 

Cuba 

Dominican Republic 

Ecuador 

Egypt 

France 

India 

Indonesia 



Italy 

Japan 

Korea 

Laos 

Mexico 

Netherlands 

Pakistan 

Paraguay 

Philippines 

Thailand 

United Kingdom 

Viet-Nam 



BILATERAL 

Costa Rica 

Agreement for a cooperative project in agricultural re- 
search in Costa Rica, pursuant to the general agreement 
for technical cooperation of January 11, 1951 (TIAS 
2186). Effected by exchange of notes at San Jos§ 
June 28 and 30, 1954. Entered into force June 30, 1954. 

Guatemala 

Agreement providing for transfer of military equipment 
and materiel to the Government of Guatemala, subject 
to certain understandings. Signed at Guatemala July 
27 and 30, 1954. Entered into force July 30, 1954. 

Honduras 

Agreement relating to duty-free entry and defrayment 
of inland transportation charges on relief supplies 
and packages. Effected by exchange of notes at Tegu- 
cigalpa August 2t> and September 17, 1954. Entered into 
force September 17, 1954. 

Liberia 

Agreement relating to duty-free entry and defrayment of 
inland transportation charges on relief supplies and 
packages. Effected by exchange of notes at Monrovia 
May 6, August 23, and September 15, 1954. Entered into 
force September 15, 1954. 

Thailand 

Agreement relating to investment guaranties. Effected by 
exchange of notes at Washington August 27 and Sep- 
tember 1, 1954. Entered into force September 1, 1954. 



630 



Department of Sfafe Bulletin 



October 25/1954 



Index 



Vol. XXXI, No. 800 



American Repoblic* 

The Odiiiinon Destiny of the Amerlcna (Drelcr) .... BOB 

Pun .\riu'rkuii Sniiltiiry Confermce aud WllO Reetonal 

Cciminltleo MeetliiR 628 

4ome Aspects of the Present Economic Situation In Latin 

America (Cnle) 600 

Atomic Eneriy. Niicleiir Physics, A Triumph of Man's 

Mlnil (Conuiit) 607 

Cambodia. American Ambasendor to Cambodia Presents 

Credentials (text of Elsenhower messaKe) .... 015 

Economic Affairs 

Internatlinial Financing of Economic Development 

(Stnuisl 026 

Some Aspects of the Present Economic Situation In Latin 

America (Cale) 600 

Foreim Service. American Ambassador to Cainbodin Pre- 
sents Credentials (text of Elsenhower niessaRe) . . 615 

Formosa. Assistant Secretary Kobertson Visits Formosa . 614 

Germany. Nuclear Physics, A Triumph of Man's Mind 

((.'onantl 607 

Health, Education, and Welfare 

Pan American Sanitary Conference and WHO Regional 

Committee Mi-etlng 629 

World Security and the World Health Organization 

(Key) 616 

International Organizations and Meetings. Pan American 
Sanitary Conference and WHO Regional Committee 
Meeting 629 

Italy. Exchange of Messages on Trieste Accord (Elsen- 
hower, EInaudI, Tito) 613 

Latin America. Some Aspects of the Present Economic 

Situation In Latin America (Cale) 600 

Military AAairs. U.S. Views on Soviet Disarmament Pro- 
posal (statements and text of resolution) .... 619 

Mutual Security. FOA Sends Flood Relief to Nepal . . . 615 

Nepal. FOA Sends Flood Relief to Nepal 615 

Pakistan. Arrival of Pakistan Prime Minister (Hoover) . 606 

Presidential Documents 

American Ambassador to Cambodia Presents Credentials . 61B 

Exchanpe of Messages on Trieste Accord 613 

National Olympic Day, 1954 606 

Treaty Information. Current Actions 630 

Trieste, Free Territory of. Exchange of Messages on Trieste 

Accord (Eisenhower, Einaudl. Tito) 613 

U.S.S.R. U.S. Views on Soviet Disarmament Proposal 

(statements and text of resolution) 619 

United Nations 

International Financing of Economic Development 

(Straus) 626 

U.S. Views on Soviet Disarmament Proposal (statements 

and text of resolution) 619 

World Security and the World Health Organization (Key) . 616 

World Health Organization 

Pan American Sanitary Conference and WHO Regional 

Committee Meeting 629 



World Security and the World UenKh Organization 

(Key) 618 

YugoslaTia. Exehanite of Messages on Trieste Accord 

(Elsenhower, Einaudl, Tito) 613 

Xame Index 

All. Moliamnied 006 

llroz-Tll.i, JohIj) 013 

C.ile, Edward Q 600 

Conaiit. James B 007 

Dreler, John C 595 

Elliaiull. LulEl 618 

Klsenhower. President 606, 613, 61B 

Hoover, Herbert. Jr 606 

Kev, David McK 616 

f."ili.-e. Henry Cabot, Jr 619 

McClintiick. Robert M 618 

McConaughv. Walter P 615 

Kobertson, Walter S 614 

Straus, Roger W 626 

Turner. Frank L 615 

Vyshlnsky. Andrei 610 

Wadsworth. James J 619 



Check List of Department of State 
Press Releases: October 11-17 

Releases may be obtained from the News Division, 
Department of State, Washington 2.5, D. C. 

Press releases issued inior to October 11 which 
appear in this issue of the Bulletin are Nos. 559 
of October 6, 561 of October 7, and 563 of October 8. 

Subject 

Dreier : Columbus Day. 
Educational exchange. 
Foreign Service memorial. 
Robertson visits Formosa. 
Program for Mohammed Ali visit. 
Educational exchange. 
Educational exchange. 
German dollar-bond debts. 
Program for Tubman visit. 
Waugh ; Colombo plan. 
Aldrich : N.Y. Board of Trade. 
Baldwin : Asian economic develop- 
ment. 
Hoover : Greeting to Mohammed Ali. 
Phillips designation (rewrite). 
Department honors ceremony. 

*Not printed. 

tHeld for a later issue of the Bulletin. 



No. 


Date 


565 


10/11 


*567 


10/11 


t.568 


10/11 


569 


10/11 


'570 


10/12 


•571 


10/12 


•572 


10/12 


t573 


10/12 


•574 


10/13 


t575 


10/13 


t576 


10/14 


t577 


10/14 


578 


10/14 


t579 


10/15 


•580 


10/16 




the 



United States 
Government Printing Office 

DIVISION OF PUBLIC DOCUMENTS 

Washjngton 25, D. C. 



PENALTY FOR PRIVATE USE TO AVOID 

PAYMENT OF POSTAGE. $300 

(GPO) 



OFFICIAL BUSINESS 



The Record on Disarmament 

Publication 5581 



15 cents 



Department 

of 

State 



A Subcommittee of Five of the U.N. Disarmament Commis- 
sion met at London in May-June 1954 to caiTy out the General 
Assembly's resolution of November 28, 1953, to "seek in private 
an acceptable solution." Following these talks, the Subcommit- 
tee's report was transmitted to the Disarmament Commission, 
which dealt with the Subcommittee's results at New York on 
July 20-29, 1954. 

The Record on Disarmament is a report on these meetings. 
As stated in the Letter of Transmittal, the discussions gave a 
clear indication of the present direction of Soviet thinking on 
disarmament. The Soviet Union showed no serious desire to 
negotiate the subject. It confined its efforts to glib distortions 
to support the propaganda slogan "ban the bomb." 
; This 20-page document gives a running account of the de- 

velopments in the secret talks at London, the records of which 
have now been made public, and the meetings at New York. 
The booklet provides a summary of the chief Western proposals 
and tactics. It concludes with a section on the implications 
of the discussions. 

Copies of The Record on Disarmament may be purchased 
from the Superintendent of Documents, U.S. Government Print- 
ing Office, Washington 25, D. C. 

Order Form 

Please send me copies of The Record on Disarmament. 

To: Supt. of Documents 

Govt. Printing Office Name: 

Washington 25, D.C. 

Street Address : 

City, Zone, and State: 

Eneloaed find: 



(cash, check, or 
money order). 



f5^ 5, 



J/ie/ ^eh<>(/rtrne7t{/ ^// ^(ate/ 




Vol. 
November 1, 1954 




•»tes o 



FIFTH ANNUAL HONOR AWARDS CEREMONY • 

Remarks by the President and Secretary Dulles 635 

THE COLOMBO PLAN • by Assistant Secretary Waugh . . 640 

ECONOIMIC DEVELOPMENT AND POLITICAL EVO- 
LUTION IN ASIA • by Charles F. Baldwin 646 

THE NEED FOR A MORE LIBERAL FOREIGN TRADE 

POLICY • by Ambassador Winthrop W. Aldrich 649 

PROGRESS IN HIGHWAY DEVELOPMENT FOR 

LATIN AMERICA • Report on the Sixth Pan American 
Highway Congress 666 



For index see inside back cover 



l»»tT O^ 



Cupcrintcndent of Documents 

NOV 2 4 1954 



^ne ZM€/ta/i(l^)n,e7il^ ^t ^late 




'>*Tn a' ' 



bulletin 

Vol. XXXI, No. 801 • Publication 5639 
November 1,1954 



For sale by the Superintendent of Documents 

U.S. Qovernment Printing Office 

Washington 26, D.O. 

Fbice: 

62 issues, domestic $7.60, foreign $10.25 
Single copy, 20 cents 

The printing of this publication has 
been approved by the Director of the 
Bureau of the Budget (January 22, 1952). 

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



The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of the 
Government ujith 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 interruitioTUil affairs and the 
functions of the Department. Infor- 
rruition is included concerning treaties 
and interruitional agreements to 
which the United States is or may 
become a party and treaties of general 
international interest. 

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



Fifth Annual Honor Awards Ceremony 



On October 19 the Department of State held its 
fifth annua? honor awards ceremony at Constitu- 
tion Hall, Washington, D. C. Following are texts 
of remarks made by the President and Secretary 
Dulles at the ceremony.^ 



SECRETARY DULLES 

Press release 691 dated October 19 

Mr. President, your presence here does us all 
ihonor. It symbolizes the vital importance of for- 
eign affairs to every aspect of American life. It 
is a reminder of the historic relationship between 
the Chief Executive, who is constitutionally re- 
sponsible for the current conduct of foreign affairs, 
uhI the Department of State and the members of 
the Foreign Service who serve him. 

The Department of State and the Foreign Serv- 
ice can boast a record of service that is older than 
the Republic itself. It was to the Department of 
State that the first Congress entrusted the safe- 
keeping of the Great Seal of the United States. 
Our Chiefs of Mission abroad are the personal 
representatives of the President. 

So we have a special and time-honored relation- 
ship to the Chief of State. 

"When I first became Secretary of State I spoke 
of the high regard in which I held the careers you 
of the State Department and Foreign Service have 
chosen. I said : ' 

. . . today we are the "shock troops" in the cold war 
which is being waged against us. Upon us depends, more 
ithan upon any other group of men and women in this 
country, the decision as to whether or not we will meet 



' For a list of individuals and units honored for out- 
standing performance of their duties, see press release 
585 dated Oct. 18 (not printed). 

' BiLLKTi.N of Feb. 9, 1953, p. 240. 



this threat, and whether we will meet it peacefully. I 
cannot imagine n greater opportunity or a greater chal- 
lenge that confronts anyone than confronts us and our 
affiliates in the Foreign Service in the Embassies all 
around the world. We have a tremendous task, a tre- 
mendous responsibility, and a tremendous opportunity. 

These words expressed wliat I believed then and 
they express what I believe now. 

We live in adventurous and dangerous times. 
Such times bring forth great ax;ts. Today we 
single out a few of the men and women who have 
responded to the challenge of our times in a man- 
ner and in circumstances which are outstanding. 
That is why they, in particular, are being cited 
today. 

There are, of course, many kinds of service that 
command such honor. First of all there is cour- 
age. One officer of the Foreign Service will not 
be able to receive his award today because he gave 
his life to save the lives of others. Other brave 
acts will receive recognition, acts of rescue and 
of fortitude in far places. 

There is also another form of devotion to duty 
which is no less deserving of recognition. I refer 
to the kind of initiative and ability which, in a 
real and direct way, contributes to the success of 
our foreign policy. This may take many forms, 
from the negotiation of a treaty or settlement that 
requires months of skill and patience, to the com- 
pletion of a delicate mission calling for tact and 
boldness in equal measure. It may be the type of 
consistently high day-by-day performance that 
inspires others. 

Many of the awards today go to members of 
the Civil Service, which is contributing its fuU 
and equal share of outstanding work. 

And let us remember those who are absent today. 
Most of these are members of the Foreign Service 
who are now on duty overseas. Their awards will 
be conferred on them at their posts. 



November 7, 1954 



635 



This ceremony is an expression of the morale 
and spirit of our whole Department and of its gen- 
erally high standard of performance. It is a re- 
affirmation of an honorable tradition of service 
to the nation. The success of our mission is de- 
pendent on the total of the skills and dedication 
which each brings to the performance of his or her 
task. As the head of the Department, I am at 
most the sum total of all its parts. As such, I feel 
proud as I stand here on this occasion. 

Now it is my high privilege to present one who 
knows at firsthand our Foreign Service through 
his own great services at home and abroad, in war 
and in peace, one who provides us with our greatest 
inspiration because of his own life of dedicated 
service to the welfare of our Nation— the President 
of the United States. 



THE PRESIDENT 

White House press release dated October 19 

In his opening remarks the Secretary well de- 
scribed my relationships with this great group, 
both with the Foreign Service and with the State 
Department civil personnel. So you can under- 
stand why I feel that this is a family gathering. 
I feel it keenly and hope you do the same, because 
you are the people that execute a responsibility 
that is laid upon me by our Constitution— the re- 
sponsibility for the foreign affairs of our country. 
You are, of course, in carrying this responsi- 
bility, concerned with promoting the prosperity 
and happiness and well-being of the United 
States, through solidifying those i-elations with 
other nations that will be helpful in this regard. 
Now this can be done only in peace. Since the 
advent of nuclear weapons, it seems clear that 
there is no longer any alternative to peace if there 
is to be a happy and well world. I often recall an 
argument I got into once with a foreign diplomat. 
He was a member of the British Foreign Office. 
And he was very worried about the arrangement 
that had been made to place the control of Ger- 
many temporarily in the hands of soldiers. He 
thought— and I don't know why— that those war- 
weary soldiers would be too anxious to start a war, 
and finally in rather resentful disgust I said to 
him, "My friend, I would like for you to know 
that the soldier has only one excuse for living in 
this world, and that is to regain the peace that you 
diplomats lost in the first place." 



636 



Now the reason I bring tliis up is that, even if 
there was a modicum of truth in what I said then, 
there no longer is. The soldier can no longer re- 
gain a peace that is usable to the world. I believe 
that the best he could do would be to retain some 
semblance of a tattered nation in a world that was 
very greatly in ashes and relics of destruction. 
But possibly he could keep us from immediate 
and complete domination by some outside force. 
That would be a poor climate in which to start 
again the development of a peace. Certainly it 
would be a far worse opportunity than we now 

have. 

The reason I paint this little pictur(^-even in a 
sort of digression— is this: We have glorious op- 
portunity ahead of us, because we have opportu- 
nity in a world that has not yet suffered that kind 
of desti-uction- pray God must not suffer that kind 
of destruction. 

In these halting words, and with these halting 
examples, I am trying to impress upon you my 
opinion of the importance of your work. There 
is no task facing the world today so important as 
maintaining a peace and giving to the world con- 
fidence that that peace will be just and lasting. 

That is the measure of what you people and 
those like you— those above you and those below 
you — in these services must do for America. 

Now, some among you today are being rewarded 
for unusual service. I have been a party to such 
ceremonies in the military sei-vice many times dur- 
ing my lifetime. They reward for courage, un- 
usual ability, and devotion and dedication, just as 
do you people. And I remind you that in my con- 
viction your work is now more important than 
theirs. But I want to bring out another point. 
Those experiences I had in the military service 
convinced me that the gradations in character 
among the different services is often difficult to 
determine. We select one man for a decoration 
and then another man is not selected. And yet 
the second man may have faced hardships, dan- 
gers, ajid privation. But you can say, well, if this 
service is not rewarded what shall we do ? I think 
you can only remind yourself of the words on the 
Iwo Jima Statue, "Uncommon Courage Was a 
Common Virtue." 

So these people, as they come up to be decorated, 
will be representative of each of you. Each of you 
wiU at least vicariously and in some small part be 
a recipient of that same award. By the same 
token, one day undoubtedly you will be standing 

Department of State Bulletin 



tliere to receive a token that will be rejjresentative 
of the work of a great body. Because only as we 
think of it in that way, only a^ we work tojiether 
from top to bottom, only as we give loyalty and not 
jealousy and envy, only as we cling together secure 
in our confidence that we are dedicated to the great 
ideals of ^Vinericanism. justice and decency and 
fair play — even for those with whom we are deal- 
ing, sometimes at swords-points, across the dis- 
tances of an ocean — only as we do that can we be 
truly successful. 

If there is any organization that should have 
the highest morale based firmly in its own convic- 
tions as to the importance of its work, the neces- 
sity for successful accomplishment regardless of 
wliat critic or opponent may say, a morale based 
in that high belief in a cause, then that should be 
the Foreign Service and the State Department — 
as, indeed, I believe it is. 

So 3'ou can understand something of the hap- 
piness I feel when I gather here with you to wit- 
ness the decoration of a few among you who, stand- 
ing as sj-mbols for all, will exemplify and typify 
the appreciation that your coimtry feels toward 
them — and each. 

Reded ication of Memorial 
to Foreign Service Officers 

Press release 56S dated October 11 

FoUoicing are the texts of remarks made on 
October 11 hy Secretary Dulles; the remarks of 
Deputy Under Secretary Miirfhy, who introduced 
the Secretary; and a letter from Presidejit Eisen- 
hower to Mr. Dulles read hy Mr. Murphy at a 
ceremony at the Department of State rededicating 
the Foreign Service memorial tablet honoring 
Americans who lost their lives under heroic or 
tragic circumstances while on active duty in the 
United States Foreign Service. 

Remarks by Mr. Murphy 

Mr. Secretary, early in 1933 a significant cere- 
mony took place in the lobby of the old State 
Department building on Pennsylvania Avenue. 
A memorial tablet honoring diplomatic and con- 
sular officers who had lost their lives in line of 
duty was unveiled by Secretai^ of State Henry L. 
Stimson. 

This memorial tablet was just recently moved 
here to the new headquarters of the Department 



of State, where it might better serve as a reminder 
and inspiration to oflicci's and employees of the 
Department and the Foreign Service, and to visi- 
tors who pass through this hall. 

Today we are gathered here for the purpose of 
rededicating this monument to the 65 members of 
the American Foreign Service who lost their lives 
under tragic or heroic circumstances between the 
years of 1780 and 1033, and of paying tribute to 
the six additional members whose names have been 
added to this roll of honor subsequent to its orig- 
inal dedication. 

Sharing this solemn observance with us from the 
Department and the Foreign Service, I am happy 
to note, are Chairman Henry M. Wriston and 
other members of the Secretary's Public Com- 
mittee on Personnel, who are so deeply interested 
in the Foreign Service. 

And now it is my gi'eat privilege, as President 
of the American Foreign Service Association, to 
invite our distinguished Honorary President, the 
Secretary of State, John Foster Dulles, to speak. 

Remarks by Secretary Dulles 

I am very glad to respond to the invitation of 
the President of the Foreign Service Association 
to rededicate this memorial. Mr. Murphy, as 
Deputy Under Secretary of State, is also the 
highest ranking career member of the Foreign 
Service. On this moving occasion, he represents 
a corps of men and women whose tradition of 
quiet devotion to the national interest is older 
than the Republic itself. 

In 1780 "William Palfrey, commissioned by the 
Continental Congress as the first United States 
consul, was lost at sea on the way to his post in 
France. Since then, 71 diplomatic and consular 
officers have lost their lives on active duty under 
"heroic or tragic circumstances." One died 3 
years ago while rescuing fellow workers when the 
United States chancery building in Korea was de- 
stroyed by fire. One lost his life on a torpedoed 
ship during World War I. Several were killed 
in earthcjuakes or volcanic eruptions. Some died 
of disease while serving in remote posts. A nmn- 
ber were assassinated. All gave their lives in the 
service of their country. 

We who come here today in gi'ateful memory 
of these men of the Foreign Service would do well 
to keep in mind that it is beyond our power to 
honor them. It is they who, by the quality of 



November I, 1954 



637 



their service, have honored us. It is they who 
have responded to the challenge of the poet : "Act 
well your part; there all the honour lies." 

Mr. Murphy has a letter from the President of 
the United States which I ask him now to read. 

Letter From President Eisenhower 

LowRT Air Force Base, 
Colorado 

October 9, 195^. 

The Honorable John Foster Dulles 
Secretary of State 

I count it a privilege to join with you and the 
members of the Foreign Service in paying tribute 
to the men of that Service who lost their lives 
under heroic or tragic circumstances in carrying 
out their duties on foreign soil. As we rededi- 
cate their memorial let us also rededicate ourselves 
to the high ideals of the organization wliich they 
so nobly served. Under inspired leadership, I 
know that the men and women of our splendid 
Foreign Service will tirelessly attack the grave 
problems before them, with courage, with intelli- 
gence, and with full devotion to the proud tradi- 
tions of our land of freedom. 
Sincerely, 

DwiGHT D. Eisenhower 



Paris Conference on 
European Security 

Following is the text of a nine-power cormrmni- 
que issued at Paris on October 21 , together with a 
statement made by Secretary Dulles at the Wash- 
ington National Airport on October 19 and a list 
of the principal U.S. delegates to the Special 
Ministerial Meeting of the North Atlantic Council. 

COMMUNIQUE OF OCTOBER 21 

The Foreign Ministers of Belgium, Canada, 
France, the Federal Republic of Germany, Italy, 
Luxembourg, the Netherlands, the United King- 
dom and the United States of America (M. Spaak, 
Mr. Pearson, M. Mendes-France, Dr. Adenauer, 
M. Martino, M. Bech, M. Beyen, Sir Antliony 
Eden and Mr. Foster Dulles) met in Paris on 
October 21st to complete the discussions begun at 
the recent Ixnidon conference on security and 

638 



European integration within the framework of! gc 
a developing Atlantic conmiunity dedicated to | cai 
peace and freedom.^ 

The Ministers were informed of the agreement 
reached between the Foreign Ministers of France, 
the German Federal Republic, the United King- 
dom and the United States of America in regard 
to ending the occupation regime in the Federal 
Republic. 

The nine Ministers then considered the reports 
of tlie working parties set up in Paris and London 
to give effect to the principles agreed at the Lon- 
don conference. They reached agreement on the 
text of four protocols strengthening and extend- 
ing the scope of the Brussels Treaty Organization, 
expanded to provide for the participation of Italy 
and of the German Federal Republic, and on the 
text of accompanying documents. 

They agreed that the London working group 
consisting of representatives of Belgium, France, 
the German Federal Republic, Italy, Luxembourg, 
the Netherlands and the United Kingdom should 
remain in being during the interim period before 
the formal accession of the German Federal Re- 
public and Italy to the Brussels Treaty Organiza- 
tion. 

The Ministers expressed to the secretaries gen- 
eral of the North Atlantic Treaty Organization 
and of the Brussels Treaty Organization, who 
were invited to be present at the meeting, their 
thaiLks for the valuable preparatory work done in 
the two organizations between the London and 
Paris conferences and for the facilities placed at 
their disposal by Nato for their meetings in Paris. 



STATEMENT BY SECRETARY DULLES 

Press release 502 dated October 19 

I am leaving for Paris to follow up the work of 
the London conference of 2 weeks ago. At that 
time it was agreed to restore German sovereignty, 
to amend the Brussels Treaty to admit Gennany 
and Italy and to establish a "Council of the West- 
ern European Union," and to bring the Federal 
Republic of Germany into the North Atlantic 
Treatj'. Since the London conference, woi"k has 
been proceeding on the completion of the docu- 
ments Tieeded to put into effect these historic deci- 



' For text of tbe final act of tlie London Conference, see 
Buu-ETIN of Oct. 11, 1954, p. 515. 

Department of State Bulletin 



sioiis, and it is lioped that tlio final executive acts 
can take jilace at Paris. 

Tliere is first to be a meeting on the questions 
relating to German sovereignty. This will bring 
together Chancellor Adenauer and the Foreign 
Ministei-s of the three Western occupying pow- 
ers — Mr. Eden of Britain, Mr. Mendes-France of 
France, and myself. 

Then there will be a meeting of the same nine 
Foreign Ministers who met in London and who 
worked out the plan for making over the Brussels 
Treaty into a means of achieving a large measure 
of European defense unity. The United States, 
while deeply interested in this development, will 
not itself be a member of this Brussels Treaty 
group. But we will cooperate closely with the 
treaty powers, witliin the framework of the North 
Atlantic Treaty. 

Then there will be a meeting on October 22 of 
the North Atlantic Treaty Ministerial Council. 
At tliat meeting, consideration will be given to 
inviting German membership and to strengthen- 
ing the authority of the Supreme Allied Com- 
mander so that he can more effectively integrate 
the Nato forces, including those of Germany. 

There are many difficult problems to be solved. 

However, I believe they can be solved, if it is 
possible to sustain the good spirit of cooperation 
and sense of high responsibility which were devel- 
oped at the London conference. 

As I said in going to that conference,^ the pri- 
mary responsibility rests upon the European coun- 
tries themselves. The United States, however, has 
a vital interest in the outcome. We shall be sym- 
pathetic and responsive to effective steps by the 
European countries to promote their strength and 
unity in the defense of freedom. 

U.S. DELEGATION TO NAC MEETING 

Press release 590 dated October 19 

United States representatives 

John Foster Dulles, Secretary of State 

Special Assistant, Roderic L. O'Connor 
Robert B. Anderson, Deputy Secretary of Defense 

Senior advisers 
David K. E. Bruce, U.S. Repre.sentative to the European 

Coal and Steel Community 
James B. Conant, U.S. High Commissioner for Germany 
General J. Lawton Collins. U.S.A., U.S. Representative 

on the Military Committee 
C. Donclas Dillon, American Ambassador to France 



' Ibid., Oct. 4, 1954, p. 489. 



H. Struve Hensel, Assistant Secretary of Defense for 

luternntioiial Security Affairs 
John C. Uughes, U.S. Permanent Representative on the 

North Atlantic Council 
Carl W. McCardlf, As.sistant Secretary of State for Public 

Affairs 
Liviut-'ston T. Merchant, Coordinator, Assistant Secretary 

of State for European Affairs 



Strengthening Pakistan's Economy 
and Defense Capabilities 

U.S.-PAKISTAN COMMUNIQUE OF OCTOBER 21 

Press release 599 dated October 21 

As the visit to Washington of Prime Minister 
Mohammed Ali of Pakistan draws to a close, the 
Government of the United States and the Govern- 
nient of Pakistan consider it fitting to reaffirm 
their common purpose in striving to assure peace 
and economic security to their peoples. They are 
convinced that those objectives can be attained 
tkrough measures of collective security, self-help 
and economic cooperation. At the same time, they 
share a common conviction that their goals can be 
attained only where fundamental spiritual values 
are permitted to flourish. 

The Prime Minister and cabinet members accom- 
panying him have had discussions of problems of 
mutual interest with a number of high-ranking 
officials of the United States, including President 
Eisenhower, Secretary of State Dulles, Secretary 
of Defense Wilson and Foreign Operations Ad- 
ministration Director Stassen. 

The discussions were preceded and have been 
accompanied by earnest efforts within the United 
States Government to determine measures which 
the United States might take to strengthen Paki- 
stan, bearing in mind Pakistan's special position in 
the Middle East and South Asia, its unreserved 
friendship and cooperation with the United States 
in its efforts for the security of the free world, and 
the economic problems with which Pakistan is at 
present faced. 

With the report of the special Foa mission sent 
to Pakistan last summer under the leadership of 
Mr. H. J. Heinz II, it became clear that, despite 
its own tremendous efforts, Pakistan was in urgent 
need of increased economic assistance to ameliorate 
shortages of consumers goods and industrial raw 
materials, and that economic development pro- 



November J, 1954 



639 



gi'ams must be increased if economic stability were 
to be attained. Accordingly, it has been agi-eed 
that the United States Grovernment will make 
available to Pakistan in the current fiscal year 
about $105 million in economic aid, part of which 
will be in the form of loans. This figure, which 
is five times last year's aid, includes funds for 
technical assistance, flood relief as previously 
agreed upon consequent to the disaster of last 
August in East Pakistan, and funds for develop- 
mental purposes. To meet Pakistan's urgent needs 
for consumer goods and industrial raw materials, 
the total figure also includes a substantial amount 
in the form of agricultural commodities. 



Recognizing Pakistan's position in the common 
defense effort and following the military assistance 
agreement signed with the United States this 
spring, the United States will endeavor to accel- 
erate the substantial military aid progi'ams for 
Pakistan, which are beginning this year. In this 
connection, the United States cannot make com- 
mitments beyond the limits of existing and cur- 
rent appropriations. However, the Government 
of the United States and the Government of Pak- 
istan intend to continue to study togetlier in this 
and future years the best means of achieving their 
mutual objective: the strengthening of the econ- 
omy and the defense capabilities of Pakistan. 



The Colombo Plan 



iy Samuel C. Waugh 

Assistant Secretat^y for Economic Affairs ^ 



The theme of your conference is "Strengthen- 
ing Economic Ties Between the United States and 
Asia." There is no need to tell this audience the 
importance of that objective. Indeed, your 
Council exists largely for that purpose — to en- 
large American understanding of the nature and 
content of our economic relations with Asia and to 
strengthen the economic ties between our country 
and Asian countries. 

Neither do I need to tell the members of this 
audience how important it is for our own interests 
and for the sake of peace and stability in the world 
that the aspirations of the countries of Asia for 
economic progress sliould be fulfilled. In those 
countries it is literally true that the future of the 
democratic way of life and the democratic form 
of government depends to a very considerable ex- 
tent on whether or not it will prove possible to 



' Address made before Far East-America Council of 
Commerce and Industry, New York, N. Y., on Oct. 14 
(press release 575 dated Oct. 13). 

For an article on the Colombo Plan, see Bulletin of 
Sept. 22, 19.'52, p. 441. 



achieve some measurable economic pi'ogress, some 
visible economic development, by democratic 
metliods. 

All of the free countries of Asia stand chal- 
lenged by the totalitarian governments of Eussia 
and Red Cliina. They are constantly being told 
that enormous progress has been made and is be- 
ing made in those Communist countries. They are 
not in a position to say that tliis is not so. They 
know, however, that if it is so this progress is 
being accomplished at a great price in human 
freedom and dignity. 

Nevertheless, whatever progress is being made 
in the slave states is a challenge to the free coun- 
tries. Tlie peoples of those free countries — many 
of them newly independent and newly possessed of 
the freedom to manage their own affairs — have 
chosen a system of government that is democratic 
and free. The peoples in these countries, how- 
ever, are not academic political scientists; they are 
farmers in the fields and workers in the factories. 
jTo them the worth of a political system is meas- 
ured by what it can do — what it can produce in 



640 



Department of State Bulletin 



the wiiy of economic well-being and increasing 
•reiieral welfare. 

To us the outcome of this chiiUcnge and this 
effort is of the greatest importance. I need not 
belabor with you the reasons why this is so. You 
know them full well. 

I have been asked to talk today about one im- 
portant set of economic ties between the free coun- 
tries of Asia and the United States and certain 
other free countries of the West — the Colombo 
Plan. In fact, I sugfrested I might talk to you 
about the Colombo Plan — in the first place, because 
I have just returned from Ottawa where I headed 
our United States delegation at the annual meeting 
of the Colombo Plan countries ; and in the second 
place, because I think that not enough of our 
people understand what the Colombo Plan is and 
what our relationship to the Plan involves. 

The Colombo Plan was conceived initially in 
1950 as an organization of Commonwealth coun- 
tries to focus attention on the economic develop- 
ment problems of the countries of South and 
Southeast Asia. It is designed to provide a frame- 
work within which international cooperative ef- 
forts can be made to promote sound and enduring 
economic progi-ess in that area. 

As I said, in its origins the Colombo Plan was a 
Commonwealth concept. It initially included on 
the one side the economically developed countries 
of the Commonwealth such as Great Britain, 
Canada, Australia, and New Zealand ; and on the 
other side the newly independent or not yet fully 
independent Asian countries members of the Com- 
monwealth such as India, Pakistan, Ceylon, Ma- 
laya, British Borneo, plus Burma. 

In the interim, however, the geographic scope 
of the membership has been so radically enlarged 
that it can no longer be thought of as being, in any 
way except historically, a Commonwealth i^roject. 
Not only has the United States since 1951 associ- 
ated itself as a full member, but other non-Com- 
monwealth countries of South and Southeast Asia 
have also joined, such as Cambodia, Laos, Viet- 
Nam, and Indonesia. Last week at Ottawa, Japan 
was admitted to membership, and Thailand and 
the Philippines, which had lieretofore been ob- 
servers, also became full members. In all, there 
are now 17 member countries, and the area 
stretches from Pakistan to the Philippines. In 
this area live 720 million people, about 29 percent 
of the world's population. 



A Committee for Economic Development 

What is the Colombo Plan? The esisiest and 
most enlightening answer to that question is to 
explain it is not a jjlan in the connnonly accepted 
use of the word "plan," but that it is exactly what 
its title says it is — the Consultative Committee for 
Economic Development in South and Southeast 
Asia. It is a committee of nations all of which 
are, for one reason or another, constructively in- 
terested in the economic development of the free 
countries of this ai-ea. It is a considtative com- 
mittee, not a continuing organization. There were 
initial foi'mative meetings of the group in 1950 and 
1951 at Colombo, at Canberra, and at London. 
Starting in 1952 there have been annual meetings 
to review progress in economic development and to 
assess prospects for the future. 

In the course of the formative meetings the 
member countries of the South and Southeast 
Asia area were encouraged to formulate economic 
development programs and thereby to translate 
their somewhat vague aspirations for economic 
progress into concrete schedules of definite and 
identifiable things to be done. In order to lend 
concreteness and definiteness to the undertaking, 
the countries agreed to envisage a 6-year pei'iod 
extending from July 1, 1951, to June 30, 1957, 
and to set down as specifically as possible what, 
during this period, they hoped to be able to ac- 
complish, how they expected to finance their pro- 
grams, what policies and legislative measures they 
expected to have to pursue, and what goals of in- 
vestment and production they hoped to be able to 
reach. 

These economic development progi-ams — each of 
which is an individual country development pro- 
gi-am — when taken collectively are known as the 
Colombo Plan. 

The subsequent meetings, which took place after 
the formative meetings, were held in 1952 and 
1953 at Karachi and New Delhi, and this year 
( 1954) in Ottawa. At these annual meetings the 
countries of the area review the results of the 
year just passed. They lay out on the table for 
frank and friendly discussion what they have ac- 
complished, what they have failed to accomplish, 
what difficulties they have encountered, what 
changes they have felt constrained to make in their 
development plans, and what policies they have 
pursued. Similarly, they evaluate their prospects 
for the future ; they try to assess what is likely to 
happen in the way of changes in the terms of 



November 1, 1954 



641 



trade, increases or decreases in public revenues, 
shortfalls or overages in the achievement of spe- 
cific development targets. They appraise what 
has been available to them heretofore and what 
is likely to be available in the future in the way 
of external assistance. They examine what has 
been and what is likely to be the role of private 
foreign investment in their economic develop- 
ment, what they have done and left undone to 
attract foreign investment and mobilize domestic 
capital. 

The Colombo Plan period from 1951 to 1957 
is, you will notice, just a little bit more than half 
over. After the formative meetings the signifi- 
cance of the 6-year framework has, I think, be- 
come progressively less. The usefulness of the 
6-year concept was that it helped and enabled the 
countries of the area to view their development 
problems more concretely. It forced them to ex- 
amine their problems and their aspirations in 
terms of what definite, concrete things could be 
done within a finite and agreed period of time. 
This searching examination by the Colombo Plan 
countries was very healthy. It made for realism 
and for a very valuable, if painful, translation of 
general plans into precise projects. 

Annual Review of Progress 

Now, however, the benefits of this rigid time 
period have been realized. It is no longer neces- 
sary or even very useful to continue refining and 
modifying the 6-year targets. Indeed, at the very 
first annual review meeting — that held at Karachi 
in 1952 — it was agreed by the Colombo Plan coun- 
tries that they would no longer keep making tech- 
nical and statistical adjustments in the 6-year 
plans. The plans were sufficiently definite that it 
would be possible — and more useful — to meet each 
year to review and assess what had been accom- 
plislied in the preceding year and to evaluate the 
tasks and the problems for the foreseeable period 
lying ahead. 

It has been customary in the deliberations of the 
Consultative Committee to draw a loose line of 
distinction between the so-called recipient coun- 
tries and the so-called contributing countries. The 
distinction is, however, becoming more and more 
a tenuous one because — and this is one of the great 
virtues of the Plan — there has been engendered a 
process of cooperation and mutual aid among the 
recipient countries such that almost all of them 



are to greater or lesser extent contributing coun- 
tries to one another. They borrow technical skills 
and technical assistance from each other according 
to their respective needs and their respective ca- 
pacities to assist. 

Nevertheless, certain member countries obvi- 
ously are altogether or almost altogether contrib- 
uting countries. The United States is one of this 
group. 

I have said that we are a full member of the 
Colombo Plan. I have also said that we are a 
contributing-country member. Now what does 
this mean ? 

The point that must be emphasized is that the 
Colombo Plan is simply an intergovernmental 
committee. We do not contribute anything to any 
central pool. There is nothing analogous to the 
Organization for European Economic Coopera- 
tion. There is no process by which the contribu- 
tions of the contributing countries are parceled 
out or allocated by any international organiza- 
tion. Our assistance to the countries of the area — 
like that provided by Canada, Australia, New Zea- 
land, and the United Kingdom — is bilaterally 
given and bilaterally received. Our contribution, 
in other words, is the sum total we do in the various 
countries of the area to promote the economic de- 
velopment of those countries. Our aid programs 
are our governmental contribution. We are not 
under any contractual obligation either to provide 
any definite amount of assistance to any one coun- 
try or to all of them taken together ; nor, for that 
matter, are we under any contractual obligation 
to provide aid at all to any particular country. 
In Burma, for example, our aid program termi- 
nated at the request of the Burmese Government. 

Neither are we under any obligation to provide 
assistance in any uniform way or according to any 
uniform pattern. Our aid programs in Viet- Nam, 
Laos, and Cambodia have been very different in 
their nature and orientation from our programs, 
for example, in India and Indonesia. Neverthe- 
less, whatever we do to help to promote economic 
development in any of the countries of the area 
is accepted and regarded as our contribution in 
relation to that particular country. 

I have been emphasizing our aid programs and 
our public contributions toward economic develop- 
ment in this area. Indeed, the whole Colombo 
Plan intellectual framework emphasizes to a very 
large extent public programs of economic develop- 
ment and public teclmiques of intergovernmental 



642 



Department of State Bulletin 



cooperation. This is understandable. The gov- 
ernments of the area naturally are in a better posi- 
tion to measure what has been accomplished by 
public action and to assess what needs to be done 
throu<rh public development projects. Likewise 
the aid that is given by governments and received 
by governments is easier to measure than the less 
tangible benefits of private foreign investment. 

Nevertheless, this natural tendency to concen- 
trate upon what is done in what these countries 
call "the public sector" does not reflect any un- 
healthy bias in favor of public projects. Indeed, 
the countries of this area are fully aware of the 
benefits of and their need for private foreign cap- 
ital. Thej' have, for example, included promi- 
nently in their calculations of sources and pos- 
sibilities of external assistance an assessment of 
what can be borrowed on the private international 
capital markets and of wliat steps need to be taken 
by them to improve their credit-worthiness. 
Many of the countries in the area have taken spe- 
cific measures to improve the climate for foreign 
investment. They have issued official declarations 
welcoming foreign enterprise either in general or 
at least in specific fields. They have publicly 
recognized also that government measures are not 
the only factors governing the import of capital, 
and, for that matter, that the mere absence of dis- 
criminatory government measures is not in all 
cases sufficient to overcome the shyness of foreign 
capital. Hence they recognize further that if they 
desire foreign participation in specific fields they 
will probably have to take positive steps to attract 
it. 

Therefore, in the various annual reviews the 
Colombo Plan countries have recognized and wel- 
comed any evidence that may have developed dur- 
ing the preceding year of willingness on the part 
of foreign investors to undertake enterprises in 
the countries of the area, especially if these enter- 
prises happen to be undertaken jointly with local 
capital — as was the case, for example, with the 
Sui gas project in Pakistan and the oil refinery 
investments in India and as promises to be the 
case in the investment finance corporations being 
established in India and Ceylon. 

Private Capital Mobilized 

The countries of the area have not only, there- 
fore, recognized the need and the scope for private 
foreign participation in the development process; 



they have also recognized the overwhelmingly 
urgent problem of mobilizing private domestic 
capital. In the most recent annual report, for 
example — that which was just prepared at Ottawa 
and which has not yet been publislied — they have 
noted that governments can help to mobilize pri- 
vate capital by seeking to minimize the hindrances 
to initiative arising from such factors as burden- 
some governmental regulations and irksome meth- 
ods of tax administration. 

In the animal meetings the countries of the area 
are prepared to face frankly the difficulties that 
exist and the shortcomings which have manifested 
themselves. These meetings are by no means a 
eulogy upon the accomplishments of the year just 
finished. They are rather a frank and friendly 
review of what has been done and what still needs 
to be done. 

The prevailing tone, for example, of the annual 
report just drafted at Ottawa is one of optimism 
combined with stark realism. The countries, 
when they reviewed the pace and the content of 
economic development during the year just 
passed, were able to conclude that significant and 
encouraging progress had been made in a number 
of important respects but that there was no room 
for relaxation of effort. They recognized that 
in some countries the progress realized was rela- 
tively small ; that throughout the region as a whole 
the population has been growing rapidly (indeed, 
at an annual rate of slightly over 9 million) and 
that, therefore, food production per capita (de- 
spite very creditable increases in total food out- 
put) was still below prewar levels; that under- 
employment in rural areas was widespread and 
that unemployment in urban areas, particularly of 
educated persons, presented a serious social prob- 
lem ; that trained personnel in many fields was not 
yet available in sufficient numbers; that in some 
of the countries of the area the process of formu- 
lating balanced development programs was still 
not far enough along ; that there was only a nar- 
row margin of production over consumption and 
that, therefore, the level of savings and the level 
of tax revenues provided on the whole only a 
precarious base for development financing. 

This is indeed a formidable enumeration of 
problems to be faced and difficulties to be over- 
come. It is, of coui-se, not the whole story. Just 
as I did not want you to think that the annual 
meetings of the Colombo Plan group of countries 
were limited to an uncritical eulogy of results 



November 1, 1954 



643 



achieved, neither did I want you to think that they 
represent a session of breastbeating and complain- 
ing over the hardness of the task. Indeed, at this 
same Ottawa meeting which produced the cata- 
logue of problems which I summarized a few 
minutes ago, the countries of the area were able 
also to record that their own outlays on develop- 
ment had increased considerably over those for the 
preceding year. In India, for example, develop- 
ment expenditures by public authorities for the 
year 1951-52 were roughly $550 million. For the 
year 1953-54, they had increased to $705 million 
and are expected for the year ending June 30 next 
to approximate $1,170 million if financing is avail- 
able. For Pakistan the comparable figures are for 
the fiscal year 1951-52, $125 million; for the fiscal 
year 1953-54, $275 million. 

These, indeed, are very creditable results and 
expectations. I mention them merely lest you 
think that the sessions of the Colombo Plan meet- 
ings are devoted entirely to lamenting over the 
difficulties of the economic development problems 
of the area. But to return to the summation of 
the problems, the frankness with which the coun- 
tries of the area have discussed among themselves 
and with us their problems and difficulties and 
shortcomings is in its aggregate a most gratifying 
experience. I am reminded of the remark made 
at the 1953 Colombo Plan meeting by Indian 
Finance Minister C. D. Deshmulh (who was the 
chairman) that the Colombo Plan was "a great 
experiment in Inunan relations." It is very I'arely 
that governments are able to come together and 
with so much freedom and honesty and openness 
to say what they have done, what they have failed 
to do, what they still need to do, what they intend 
to do, and what are the political and cultural 
limitations upon what they can do. 

If there is any conclusion to be drawn as con- 
cerns what the members of this Far East-America 
Council might learn from the experience, at gov- 
ernmental level, in the Colombo Plan, it is, I 
should think, that there are almost limitless possi- 
bilities of fruitful cooperation between the United 
States and the countries of Asia if there is evi- 
denced the same frankness, the same patience, and 
the same understanding. "We in government know 
that there are difficulties in the way of establish- 
ing business connections in the countries of Asia. 
We know that there are frictions, there are uncer- 
tainties, there are difficulties of mutual under- 
standing. However, from our experience at the 



govei-nmental level we are quite certain there is a 
great fund of common interest and of common 
viewpoint. We conclude, therefore, that there is 
nmch which should be done and can be done to 
accomplish the objective stated as the theme of 
this conference: "Strengthening Economic Ties 
Between the United States and Asia." 



Transfer of Destroyers to Japan 

Remarks ly Everett F. Dnimright ^ 

I consider it a gi-eat honor to represent the Sec- 
retary of State on this important occasion. Two 
destroyers of the United States Reserve Fleet are 
being turned over today on loan to the Govern- 
ment of Japan under the Mutual Security Pro- 
gi-am. His Excellency the Ambassador of Japan 
[Sadao Iguchi] is with us here to receive the ves- 
sels on behalf of his Govermnent. Two Japa- 
nese crews, comprising officers and men of the Jap- 
anese Maritime Self-Defense Force, have been the 
welcome guests of this country for several weeks 
while they have been trained in the handling of 
these vessels. These Japanese crews will take the 
destroyers to Japan, where they will be an impor- 
tant addition to the modest defensive forces which 
Japan has now begun to establish. 

It is appropriate for us to recall at this moment 
t\\Q words of Prime Minister Yoshida at the San 
Francisco Conference, on the conclusion and sig- 
nature of the Treaty of Peace with Japan. At 
that time he so aptly stated : 

Uufortunatel.v, the sinister forces of totalitarian op- 
pression and tyranny operate still throughout the slobe. 
These forces are sweeping over half the Asiatic continent — 
sowing seeds of dissension — spreading unrest and con- 
fusion — and breaking out into open aggression here and 
there — indeed, at the very door of Japan. 

The Prime Minister went on to say : 

When the Allied troops are withdrawn from our coun- 
try with the conclusion of peace — producing a state of 
vacuum in the country — it is clear as day that this tide 
of aggression will beat down upon our shores. It is im- 
perative for the salie of our very existence that we take 
an adequate security measure. 

To meet the danger he had described. Prime 
Minister Yoshida shortly after the conclusion of 
the peace treaty signed a Security Treaty entered 



' Made at Charleston, S. C, on Oct. 10 (press release 
583 dated Oct. 18). Mr. Druuiright is Deputy Assistant 
Secretary for Far Eastern Affairs. 



644 



Department of State Bulletin 



into between Japan anil the I'nited States.- In 
this treaty the United States indicated its willing- 
ness tx) maintain certain of its armed forces in 
Japan, in the expectation that Japan wonld in- 
creasingly assume responsibility for its own de- 
fense against direct or indirect aggression. This 
treaty recognized the threat of aggression against 
Japan and Japan's inability at that time to pro- 
vide adequately for its own defense. 

The danger that Prime Minister Yoshida so 
fully recognized at that time still exists. Japan 
continues to be a major target of the international 
Coimnunist conspiracy. However, since Septem- 
ber 1951 the Government and the people of Japan 
have taken stei)S to assume increasing responsi- 
bility for the defense of their homeland. In the 
last session of the Diet, approval was given to the 
expansion of Japanese armed forces. The mission 
of these forces was also amended to include specific 
responsibility for defense against external aggres- 
sion. In the meantime, the Japanese (Tovernment 
and the U.S. Goveniment had signed a Mutual 
Defense Assistance Agreement.^ This gives the 
legal basis for the United States to provide mili- 
tary assistance to Japan under the Mutual Security 
Program. This program is based on the premise 
that only by true mutual effort can the nations of 
the free world reserve their independence and 
freedom. I cannot help at this moment but recall 
your very profound statement, Mr. Ambassador, 
at the Japan Society Dinner in New York City on 
March 18, 1954. You then said : 

In this common endeavor for our mutual self-preserva- 
tion, Japan is now ready to contribute her proper share. 
Out of the tragedy of war and out of the political, eco- 
nomic, .social, and moral convulsions which followed in 
the wake of conflict, Japan has emerged with a keen 
realization that she cannot stand alone in this world. 



' Bulletin of Sept. 17, 1951, p. 463. 
' Ibid., Apr. 5, 1954, p. 518. 



Mr. Aiiibassailor, no member of the free world 
conununity can stand alone today. Our very pres- 
ence hei'e in Charleston is indicative of the true 
nnituality of the free world. The loan of these two 
vessels to your Govermnent represents not only the 
intention of the U.S. Government to assist in the 
defense of Japan, but also the desire of your (lov- 
ernment to a.ssume this responsibility. The 
strength of the entire free world is dependent on 
the individual strength of its members. We have 
very recently seen in the conclusion of the Manila 
Pact further recognition of the interdependence 
of free nations in their common determination to 
resist aggression. Your Foreign Minister has 
pledged Japan's moral support to this arrange- 
ment. As time progresses, Japan will achieve its 
own position of strength in the Far East and will 
be better able to contribute to the common effort. 

These two vessels — the Asakaze, meaning Morn- 
ing Breeze, and the Hatakase, meaning Flag-flut- 
tering Breeze — will play their part in securing the 
defense of Japan. I am sure that the Japanese 
Maritime Self-Defense Force has chosen well you 
officers and men who take these vessels back to 
their duty stations. I know that you will take 
back to Japan more than the technical knowledge 
of ships acquired during your few months of train- 
ing here. I am sure that you will take back to your 
people the strong friendship, esteem, and good will 
which our people feel for yours. 

I wish you a pleasant voyage and success in your 
future missions. 

Letters of Credence 

Union of South Africa 

The newly appointed Ambassador of the Union 
of South Africa, Dr. John Edward HoUoway, 
presented his credentials to the President on Oc- 
tober 18. For the text of the Ambassador's re- 
marks and the text of the President's reply, see 
Department of State press release 582. 



November 1, 1954 



645 



Economic Development and Political Evolution in Asia 



hy Charles F. Baldwin 

Economic Coordinator, Bureau of Far Eastern Affairs ^ 



The political evolution of a nation and of a 
people is not something which develops out of the 
doctrines of political philosophy or the activities 
of political leaders alone. It comes about as a 
result of a fusion of the forces which most directly 
affect and condition the lives of the people of the 
country. One of the most influential of those is 
the economic force. 

It is surely true that man cannot live by bread 
alone. The materialistic doctrines of Marxian 
dogma leave unsatisfied urges of mankind which 
far transcend the material. It is, however, 
equally true that the spirit of man, which stimu- 
lates the political development of free men, finds 
hope and encouragement in an atmosphere of 
material progress and personal well-being. That 
fact is implicit in the concepts of democracy. 

One of the vitally important necessities of 
modern life is to see international developments in 
reality — not influenced by preconceived ideas or 
wishful thinking. If we look beneath the surface 
of Asian events today — as we must if we are to 
understand them clearly — we see Asia as a vast 
area where two powerful political movements have 
been occurring simultaneously. One of them, 
which represents the age-old longing of human 
beings to control their own destinies, we can call 
the revolution of Asian nationalism. The other, 
representing the equally old determination of a 
ruling clique to gain and exercise power by any 
means, is the massive and menacing impact of 
communism. One of these forces could light the 
way to greater human freedom and advancement 

' Address made before the Far East-Aiiierica Council of 
Commerce and Industry, New York, N. Y., on Oct. 14 
(press release 577). 



in Asia ; the other could extinguish that light for 
a long time. 

Since the last war the political status of hun- 
dreds of millions of Asians has been changed com- 
pletely. Before the war no country of South and 
Southeast Asia, with the single exception of Thai- 
land, governed itself. Now, all of them (India, 
Pakistan, Cej'lon, Burma, Indonesia, the Philip- 
pines, Thailand, Cambodia, Laos, and the non- 
Conununist part of Viet-Nam) are self-govern- 
ing — all except Malaya, which has been promised 
its independence by the British Government. 
This is an historical fact not only of profound 
political importance but of almost equally signifi- 
cant economic importance. 

The government of each of these newly inde- 
pendent countries bears the heavy responsibility 
of establishing and maintaining an economic cli- 
mate which will be conducive to political stabil- 
ity — an atmosphere in which the spirit of 
political independence and personal freedom will 
flourish. Essential to the welfare of these coun- 
tries, therefore, is a process of economic develop- 
ment which will insure a steady increase in the 
opportunities for the advancement of their people 
and which will better satisfy the aspirations of 
their people. 

This need for economic growth is a basic part 
of the economic problem of Asia, which is really 
two jiroblems which tend to be complementary. 
Japan, the only country which is highly advanced 
industrially, has experienced the characteristic 
postwar difTicultios of the large industrial coun- 
tries, comi)licatcd by a shortage of natural re- 
sources. All of the other free Asian countries re- 
veal the customary characteristics of retarded 



646 



Deparfmenf of State Bulletin 



economic development. In all of them progress — 
in some of tliem considerable progress — in attack- 
ing the problem has been made, but a great deal 
more remains to be done. 

The people of these countries want a higher 
standard of living. Their governments have 
promised them a higher standard of living. If 
those promises are not kept, or if for any other 
reason economic improvement does not take place, 
public disillusionment and resentment will replace 
hope and confidence, and the opportunities for 
troublemakers to take advantage of public discon- 
tent will multiply. 

There is a temptation, when we are confronted 
by problems so vast and perplexing as those of 
Asia, to resort to generalities which, while momen- 
tarily comforting, do not always liold up under 
analysis. The problem of economic underdevelop- 
ment in Asia is far reaching, deeply rooted, and 
not susceptible of quick and easy solution. It is 
possible, however, to identify the nuiin elements 
of the problem and to suggest at least an approach 
to the solution. 

Low Per Capita Incomes 

The most simplified statement of the basic prob- 
lem is that the income of the average Asian is too 
small to produce the savings needed to finance ade- 
quate economic development. Japan, Malaya, and 
the Philippines have annual per capita national 
incomes equivalent to around $200. The figure for 
Ceylon is roughly about one-half of that amount; 
in Thailand, the Indochina states, and Indonesia 
it ranges from about $60 to $75, while in Burma 
and India it is even lower. In an area of rapidly 
increasing population, an income which is distrib- 
uted so thinly is unable to satisfy basic needs and 
also provide sufficient economic stimulus to raise 
appreciably the relatively low level of economic 
development. 

There are, of course, factors other than low in- 
come and a slow rate of capital formation which 
are retarding economic progress. Because of the 
inability to generate internally sufficient capital 
for investment purposes, a steady and increasing 
flow of outside capital could be an important eco- 
nomic stimulant. Unfortunately, the movement 
of foreign private investment capital to Asia since 
the war has been little more than a trickle in 
comparison with the needs. In recent years net 
private foreign capital investment in the countries 



of South and Southeast Asia has amounted to 
only about $2.5 million i^er year, sligiitly over one- 
half of which has been United States private in- 
vestment. One can hope that more foreign pri- 
vate capital will move into free Asia for produc- 
tive purposes within the next few years, but it 
seems unlikely that such additional resources will 
be sufficient to change appreciably the overall eco- 
nomic situation in the near future. 

Directly affecting the scale of economic devel- 
opment in Asia is the problem of human atti- 
tudes. Under the most favorable circumstances 
the evolution of new ideas and practices in Asia 
will require time and painstaking effort. The gap 
between the concepts about material aspects of 
life of a great many Asians and of dwellers in 
more industrially advanced countries is wide. 
Many of those concepts have a deeply rooted re- 
ligious and philosophical basis, and the task of 
adjusting them to the requirements of a more 
complex economic society will challenge the wis- 
dom and patience of Asian governments and lead- 
ers. In fact, the ability to bring about this tran- 
sition under tolerable conditions may prove to be 
one of the greatest tests of the governments of 
Asian countries. 

Essential to the accomplishment of this transi- 
tion will be the development of an entrepreneurial 
group of sufficient size and experience to under- 
take and manage the kind of projects which are 
needed. 

Equally necessary will be an enlargement of the 
present Asian reservoir of skilled technicians. 
The technical assistance programs which have 
been carried on in Asia with the support of the 
United States and other countries have begun to 
reduce the proportions of this problem to some 
extent, but it is still a fundamental obstacle. A 
great deal more in the way of technical training in 
the shortest possible time will have to be accom- 
plished, both by private enterprise and by govern- 
ments in Asia, before a sound technical foundation 
to support a durable structure of economic de- 
velopment can be built. 

Closely associated with the human factor is the 
need for sound governmental policies to support 
the process of economic growth. Wise budget- 
ary and fiscal policies will be necessary to prevent 
"feast and famine" trends and to derive full bene- 
fits from each stage of economic progress. This 
will not be an easy task, particularly for the gov- 



November 1, 7954 



647 



ernments of the newly independent countries 
which are having to learn quickly the difficult les- 
sons of governing in the modern world, but it 
will be an essential task. 

Basic Objectives 

There are differences of opinion with respect 
to the best means of accelerating economic devel- 
opment in Asia. To the young Dyak AA-hom I met 
a few months ago in the interior of Borneo and 
who was studying better methods of basic agi'icul- 
ture under an Australian technical instructor, eco- 
nomic development has one meaning. To the 
Chinese manager of a new textile plant in Singa- 
pore whom I met a few days later, it has another. 
The pattern must, of course, necessarily vary ac- 
cording to different conditions in different coun- 
tries. In general, however, the following objec- 
tives should be sought — and in fact are being 
sought by many of the country developmental pro- 
grams todaj^ : 

A basic objective should be to increase agricul- 
tural efficiency, exploit agricultural potentialities 
more fully, and better diversify agricultural out- 
put. The free Asian countries have essentially 
agrarian economies; the process of their indus- 
trialization should rest upon an increasingly 
strong foundation of agi'icultural productivity. 
In the countries of free Asia there is a challenging 
opportunity to demonstrate that economic devel- 
opment in a free society need not be at the expense 
of agi'icultui'e, as it has been under Communist 
planning, but can benefit the tillers of the soil as 
well as the workers in industry. 

Another objective should be the provision of 
more adequate transportation and a more abun- 
dant siipply of power. Those of j'ou who have 
traveled oft' the well-beaten paths in Asia need not 
be reminded of the primitive transportation facili- 
ties which are often the rule rather than the ex- 
ception. The provision of better transportation 
and more abundant power should, of course, be 
designed to stimulate and not outdistance the gen- 
eral pace of economic development, but it can 
and it should be an important stimulant. 

An essential objective should, of course, be the 
development of industries which are economically 
justified and most likely to contribute to economic 
growth and to the expansion of trade. This is 
the most alluring sector of any economic develop- 



ment program and the one which presents the most 
dangerous pitfalls. In this vitally important 
phase of economic development, intelligent and 
realistic forethought will be necessary to avoid 
the uneconomical expenditure of time, effort, and 
money and to insure that industrialization will be 
of the kind most suited to the available human 
and material resources. 

There is a rather understandable tendency in 
most underdeveloped countries to try to emulate 
the more highly industrialized countries without 
always considering fully the phases of develop- 
ment through which those countries have passed. 
\Yliile big, basic industries play a vital part in the 
economic life of the United States and other in- 
dusti'ial nations, the role of the small industries 
has also been a vital one. Their role in the eco- 
nomic growth of Asia can also be of fundamental 
importance. 

Private American businessmen and investors 
have already been able to contribute substantially, 
directly and by example, to the economic develop- 
ment of Asia ; tliey should be able to make an even 
more important contribution in the future. 
Every Asian employee that is trained, every em- 
ployee benefit program that is instituted, every 
new, constructive investment that is made, and 
every new technical process which is introduced 
and applied assists in the endeavor. Many Amer- 
ican firms are doing these things today. We hope 
that the number will increase in the future. 

The need for workable plans of economic de- 
velopment and for their accomplishment is recog- 
nized by almost every enlightened Asian. It is 
highly important from the standpoint of the 
security of the people of the free world that these 
plans should be realized. Only by their realiza- 
tion can the trade of these countries with their 
great populations be expanded with benefits not 
only to themselves but to other countries of the 
free world. Only by their realization can Asian 
expectations be satisfied and economic and polit- 
ical stability achieved. 

The problems which will continue to arise in 
Asia will test the capacity of the Asians and of 
their non-Asian friends to concentrate on the 
larger and essential objectives and not be dis- 
tracted by momentary setbacks and rebuffs. Many 
countries of Asia are endeavoring to achieve eco- 
nomic evolution in a relatively short period of 
time and under conditions much more disad- 



648 



Deparfment of Sfafe Bulletin 



vaiitiifrpons than tlioso which attciuli'd tho jjrowth 
of the now highly developed countries. As they 
strufigle to develop, they will need the friendly and 
syni])athetii' uiidei-staiiding and assistance wliicli 
the United States and other economically ad- 
vanced countries can extend to them. By the ex- 



tension of such assistance, wo can demonstrate 
our <;o()d intentions antl tlie sincerity of our 
friendshij). We can also make more secure for the 
free people of Asia as well as for oniselves tlic 
benelits which economic, political, and social 
stability in a free society can make possible. 



The Need for a More Liberal Foreign Trade Policy 



by Winthrop W. Aldrich 
Amhansador to Great Britain ^ 



I have now spent almost 2 years in London. In 
the course of these 2 years I have had the privilej^e 
of observing at very close range a truly extraor- 
dinary series of American diplomatic successes, 
lender the wise guidance and leadership of Presi- 
dent Eisenhower and Secretary of State Dulles 
the United States has been cast more and more 
in the role of a good partner in the fellowship of 
nations. 

The Korean War was fought by us in that spirit 
of partnership against aggression which gives the 
United Nations meaning ; and the armistice which 
came at last was the result of long and concerted 
effort by the free nations. 

In this spirit of partnership we were able to 
assist Great Britain and Egypt in the final settle- 
ment in regard to the Suez Canal Base. In this 
same spirit we also played a helpful part in the 
conclusion of the Iranian oil dispute. 

The Manila Pact and the ringing Pacific Char- 
ter that was signed there were twin landmarks. 
The pact was a firm step in collective self-defense 
i n Southeast Asia, and the charter was a bold proc- 
lamation of the principles of self-determination, 
self-government, and independence in that pail 
of the world. 

And now within the last few days can be added 
the triumpliant conclusion of the Nine-Power 



' Address made before the lioard of Trade of New York 
at New York, N. Y., on Oct. 14 (press release 576). 

November J, 1954 

319G61— 54 3 



Conference and the signing of the Trieste Agree- 
ment. 

The pact that was signed at the Nine-Power 
Conference is, I believe, the best arrangement for 
the security of Western Europe that could be 
found after the rejection of YjUC. Out of the 
vacuum that the collapse of Edc created, and 
the anxious month that followed it, has emerged 
a workable plan for the sovei'eignty and rearm- 
ament of Germany and a hard core of unity at the 
center of the North Atlantic Community. The 
successful work of the architects at London has 
been crowned by the approval of the German 
Bundestag and — just the day before yesterday — 
by the approval of the French National Assembly. 

During the whole period of the Conference 
Great Britain and the United States worked to- 
gether in the closest fellowship. We rendered 
support to our great ally, who had taken the 
initiative in finding a plan to fill the vacuum 
created by the rejection of Edc. 

Because the collapse of the Edc plan was a col- 
lai)se from within, Mr. Dulles wisely felt that the 
initiative for new proposals at the Nine-Power 
Conference rested with the European nations 
there. But his statesmanship helped to guide 
the Conference over many shoals. 

Trieste was also essentially a European prob- 
lem, a 9-year fever spot where the territorial 
wishes of Italy and Yugoslavia appeared irrecon- 
cilable. But a long year of discussions and con- 

649 



ferences, in which Great Britain and the United 
States assisted, finally bi'oiight about a com- 
promise, and one more danger spot has been 
I'emoved. 

All of these events that I have enumerated will 
cause no comfort to the Soviet. The partnership 
of free nations has been tremendously strength- 
ened by these achievements. 

And now to speak of more immediate business. 



Importance of Trade Relations 

As members of the Board of Trade in the 
largest port and the leading commercial center 
of our Nation, you are vitally concerned with the 
foreign economic ix)licy of the United States. As 
American Ambassador to one of the world's great 
trading nations, I have been impressed anew with 
the enormous importance of our economic rela- 
tions with the rest of the world, not only in the 
economic sphere but in the political and military 
spheres as well. 

The phenomenal growth of our country and its 
transformation in so short a time from a new un- 
derdeveloped continent into the greatest economic 
jiower on earth have caused our foreign trade 
relations to become a problem of extraordinary 
urgency. 

I believe that an increasing number of our peo- 
ple, and particularly of our business community, 
have became aware of the problem and clearly un- 
derstand where the solution lies. And we are in- 
deed fortunate tliat today we have in the White 
House a President who has this clear under- 
standing. 

To meet the needs of the times, the American 
people should have as one of their main objec- 
tives the promotion of the highest possible levels 
of international trade. 

As a nation devoted to the ideal of free, com- 
petitive enterprise, we have a natural leaning 
toward a world in which trade is conducted on a 
multilateral basis, in which there is no discrimina- 
tion between sources of supply, in which every 
businessman has a chance to trade according to 
his choice and his capabilities, in wliich there is 
a minimum of government interference, and in 
wliich currencies are freely convertible. We all 
know that these conditions will not be created un- 
less the U. S. is prepared to take a hand in 
bringing them about. 

That is wliy I believe the recent recommenda- 

650 



tions of the President's Commission on Foreign 
Economic Policy,^ headed by Mr. Clarence B. 
Randall, should be adopted. They constitute a 
hardheaded practical program designed to fit 
smoothly into our American economy and to fur- 
ther the national interest. 

We must not let ourselves be deluded into think- 
ing that anything we do in this direction is merely 
for the benefit of other people or is designed to 
save the whole world at our own expense. Quite 
the contrary. A liberal foreign trade policy for 
the U. S. is dictated by the intelligent self-interest 
of the American people. It will certainly help 
other free nations, and it will cei-tainly strengthen 
the bulwarks of freedom everywhere. But it is 
equally essential for our own increased prosperity 
here in America and for the ultimate security of 
our own land and our way of life. 

Since I have been in London I have had it 
brought home to me time and again how direct 
and sharp are the effects of our foreign trade pol- 
icy on our own economic welfare in the United 
States. 

Large numbers of Americans count on export 
markets for their livelihood and their standai'd of 
living. In agriculture alone we have about 40 
million acres representing from 10 to 12 percent of 
the Nation's agricultural output, whose harvests 
go into the export trade. There are many Ameri- 
can factories that sell their manufactures through- 
out the world. President Eisenhower has pointed 
out that the jobs of more than four million of our 
people depend on foreign trade. 



Exports Dependent on Imports 

It is an elementary fact of economic life that 
if we expect to receive dollars in paj'ment for our 
exports, we have to make those dollars available 
abroad. 

What does this mean ? It means simply that if 
we restrict our imports under the theory that we 
are protecting America and the American stand- 
ard of living, we are in fact doing exactly the 
opposite. Restriction of our imports means restric- 
tion of our exiwrts. And that can mean reduced 
employment and living standards not only for the 
many Americans — farmers, manufacturers, work- 
ers — depending on exports, but for the American 



= I'.ULLETiN of Feb. 8, 1954, p. 187. 

Department of Stale Bulletin 



consuminp: piiblie as a wholo, whitli has to pay 
higlier prices iov its |j;()()cls. 

This point strikes you with imidi more force if 
you are sittinj;, as I do in Loiuloii, at one of tlie 
points abroad wliere America buys and conse- 
([iK'ntly is able to sell — or, sometimes wn fortu- 
nately, where America does not buy and conse- 
quently cannot sell. 

Day after day in I^ondoii we in tlie Embassy 
have visits from Americans anxious to sell their 
l>r(Hlncts in the I'.K. and British Conunonwealth. 
'I'hey want to sell automobiles and hardwoods and 
fruits and numy other U.S. products. Tiiey 
always <iet the same reply. ''We like your prod- 
ucts. We want them. But we do not have enough 
dollars. If we were able to earn the dollars, we 
would gladly buy from you." 

And at the same time we hear from British 
businessmen of the difficulties they encounter in 
our market, of delays in customs formalities, of 
higli taritl's in many cases, of low bids rejected 
on the basis of our Buy American requirements, 
and, above all, of uncertainty because of escape 
clauses or other provisions of our tarifl' laws gov- 
erning the conditions under which they may do 
business. 

All these difficulties that are put in the way of 
foreign imports to the United States frustrate 
the foreign exporter. But at the same time they 
do something else. They frustrate the American 
exporter as well. Every time we stop a possible 
import, we lose a probable sale abroad. 

If we do not move in the direction of a more 
liberal trade policy, there is every likelihood that 
we will not stay where we are in foreign trade 
matters. We are more likely to move backward 
into the morass of greater restriction, narrow bi- 
lateralism, and lower volumes of trade. These 
things have a momentum of their own, backwards 
as well as forwards. Such a development could 
endanger our whole economy. 

It is a fact of great significance that one of 
the main factors wiiich kept our recession last 
winter from getting worse was the maintenance 
of a high demand for our goods abroad. 

I believe the preponderance of opinion among 
American businessmen, farmers, labor leaders, and 
economists today is tending increasingly to the 
view that a more liberal U.S. foreign trade policy 
is essential to our own national prosperity. 

But today there is an even more urgent reason — 



over and above economic self-interest — wliy we 
shouhl follow tile lead of I'resiilent Eiseniiower 
and support a higher level of two-way trade. It 
is this: The safety of our Nation demands it. 

This is an entirely new development. And 
again it is due to the tremendous importance which 
the American economy has now achieved in the 
world pict ure. Our nuirket is so huge that a snudl 
upward or downward movement in our imports, 
unimportant as it may be in relation to our total 
consumption, may mean the diil'erence between 
jiiosiierity and depression for many other coun- 
tries. And if things go seriously wrong with our 
economy and if we do not behave reasonably, in- 
telligently, and fairly in the manner in which we 
handle our large share of world trade, economic 
havoc can be created in many places where it is 
to our national interest to see i)rosperity, stability, 
and good will. 

In the world of today we must cultivate our 
friendships and strengthen our alliances. One of 
the most important factore in this process is the 
manner in which we deal with our foreign trade. 



Liberal Policy Essential to Defense 

There are three very specific reasons why a more 
liberal foreign trade policy is essential to the de- 
fense of the U.S. : 

(1) If we provide a better market for our 
friends, we strengthen their economies. This 
makes a stronger foundation for their own defense 
efforts and makes their lands more imnnme from 
the enemy's fifth column, which feeds on economic 
difficulty. By liberalizing imports we achieve 
this by trade, which benefits oureelves as well as 
the other countries. 

(2) Friendly countries that are denied access 
to the American market must find markets else- 
where. Our enemies do not miss any opportunity 
to exploit our shortcomings. They say, "You see, 
you cannot trade with the United States. Trade 
with us instead." To many who have found dif- 
ficulty in trading with us, such as the Dutchman 
or Dane whose cheese or whose butter has been 
excluded from the United States, these words are 
bound to have their efl'ect. Such oilers have al- 
ready had some serious effects on American trade 
as well as on our common security. 

Now a certain amount of East- West trade may 
do no harm. It may jjossibly do .some good. But 



November I, 1954 



651 



it would become dangerous if there should be too 
great a dependence by smaller and weaker coun- 
tries in Europe and the East on Soviet markets for 
their prosperity and economic existence. 

(3) As the strongest nation in the partnership 
of the free world, it is vital for the United States 
to keep tlie confidence of the nations to whom we 
are allied and on whom we depend. Time and 
again we have taken the initiative in suggesting 
and working out action which later on has been 
successfully taken by the free nations in concert. 
But I would be less than frank with you if I did 
not say that every time we seem to doubt or waver 
in the adoption and continuance of a firm liberal 
trade policy for the United States, we sow the 
seeds of doubt in the minds of other countries as to 
our dependability as a leading partner. Every 
time the Buy American act is enforced to favor the 
purchase of some higher costing American equip- 
ment over a lower foreign bid, it causes only a 
small ripple of interest on this side, but I can 
assure you it creates waves of headlines and 
criticism, resentment, and bitterness in the country 
affected overseas. The cost of this kind of so- 
called protection for a single American firm is 
terribly great to our Nation as a whole. 

Randall Commission's Recommendation 

That is why I would so strongly endorse the 
recommendation of the Randall Commission to 
amend drastically such discriminatory legisla- 
tion. And that is why I believe so deeply in the 
wisdom and necessity of our adopting promptly 
the rest of the foreign economic policy which has 
been put forward by President Eisenhower. 

Since the wax-, in addition to helping other 
countries militarily and financially to regain their 
strength, we have taken the lead in trying to de- 
velop sound trade rules based upon the principles 
of private enterprise, free competition, individual 
initiative, and equal opportunity. We have 
preached this gospel fervently to the rest of the 
world. I believe that we as well as others should 
live up to it. 

One important step we can take is to enable 
the United States to play its full part in the Gen- 
eral Agreement on Tariffs and Trade (Gatt), 
which provides a frameworlv of worldwide trade 
rules. 

Our participation has been partially clouded by 
tlie fact that Congress has neither approved nor 



disapproved the Gatt. Nevertheless, its rules have 
been largely accepted as the rules of international 
trade. The countries which are parties to it have 
met frequently and have settled many trade prob- 
lems which might otherwise have grown into trou- 
blesome disputes. A remarkable atmosphere of 
mutual understanding and trust has grown up in 
Gatt, which is potentially a great unifying force 
in the free world. Such understanding and trust 
are especially necessary when, as at present, the 
Soviets are intensifying their "trade peace 
ofl'ensive." 

INIany countries are anxious to proceed with 
further negotiations for the reduction of tariffs. 
But no group of countries is willing to go ahead 
with any significant tariff action unless the United 
States can particijaate in the necessary negotia- 
tions. Until we adopt the President's proposal 
for cooperation in this field, we are not in a posi- 
tion to participate. 

There are other practical reasons why we should 
favor the promotion of a high level of world trade 
as widely as possible on a multilateral basis. 
About 85 percent of our imports are raw materials 
mainly from underdeveloped countries. There is 
also the special problem of Japan, which must be 
taken back into the Western society of trading 
nations on a fair basis so that she can again earn 
her living without unusual subsidies. To accom- 
plish this, there must be a concerted effort in the 
free world to make room for perhaps an additional 
500 or 600 million dollars' worth of annual Jap- 
anese exports during the next few years. 



Need for Action Now 

I have just one other point to make. 

Never has the time been more ripe for action in 
this field than this present moment. 

Partly as a result of our own efforts and as- 
sistance, partly as a result of the energy and de- 
termination of the other countries themselves, 
many nations of the free world have largely 
recovered from the effects of the war. Their cur- 
rencies are more stable, their production is once 
again forging ahead beyond the prewar levels, 
their gold and dollar reserves are rising. The ra- 
tionings and restrictions of wartime are being dis- 
carded one after another. There has been an in- 
creased swing toward economic freedom in many 
countries, particularly in the last 2 years. And 



652 



Department of State Bulletin 



many nations in Europe and in the l?i-i(isli (\)ni- 
monweallii are bej;;inning to taliv seriously about 
convertibility and return to the liealthy trade con- 
ditions which we all desire. 

Hut I think it is now clear that the liiial steps 
will not be taken by nuiny countries until they feel 
sure that we, too, will continue to move in tlu' 
desired direction. 



President's Views 

It is encouraging to know that President Eisen- 
hower is keenly aware of this situation and of the 
need for maintaining the present momentum to- 
ward freedom. In his letter to Mr. Harry Hullis 
of General Mills some weeks ago,^ the President 
wroto: "The prudent widening and doeponing of 
the channels of trade and investment by us will 
not only produce good results in themselves, but 
will encourage similar action l\y our friends 
abroad. That is the route to better markets and 
better feeling." 

And the I'resident added: "It is my present in- 
tention to give high priority to progress in this 
whole iield in planning for next year's legislative 
program." 

New developments and new needs are coming to 
the fore in large areas of the world. The free na- 
tions stand at the point of transition from emer- 
gency to long-term policies. What form these 
policies take will depend to a very large extent 
upon our national decisions in the months ahead. 

"We cannot afford to miss this opportunity to take 
action in behalf of the economic welfare of our 
own people and the security of ourselves and our 
friends the world over. 

It is of the utmost importance, therefore, that 
the American people support President Eisen- 
hower in his efforts to move as rapidly as possible 
toward a forward-looking foreign economic policy. 
In this effort I think the business community has 
a special res|)onsibility. Perhaps more than any- 
one else in our country, our leaders of commerce 
and finance, of industry and agriculture, can see 
clearly what we have to gain if we succeed and 
what we risk losing if we fail. 

"With the peace and prosperity of our land so 
clearly at stake, I am confident we shall succeed. 



Admission of Polish Seamen to U.S. 

Press release G04 dated Octoher 22 

.\c(ing Secretary Hoover and Attorney (general 
lli'ilxTt Hrownell, Jr., on October ii2 agreed that 
it would be in the national interest to admit to 
tlic United States '22 Polish seamen who defected 
Iroiii communism while their siii[)S were in For- 
mosa. The grant of entry was under the section 
of the Innuigration and Nationality Act which 
gives the Attorney General di.scretionary power to 
admit aliens who would otherwise be inadmissible, 
when there is a showing the entry would be in the 
national interest. 

Instructions relative to admission of the seamen 
to the United States have already been sent to 
Formosa by the Department of State. 



Petty Offenses Under 
Immigration Laws 

Press release 593 dated October 20 

A single petty offense against the law is no 
longer a bar to granting an alien a visa to enter 
the United States. 

"Visa applications are now being considered by 
the Department of State under provisions of a 
new regulation permitting issuance of a visa to an 
alien notwithstanding his conviction of a single 
offense which under American legal standards 
would be a misdemeanor, rather than a felony, and 
a conviction for which the penalty actually im- 
posed was imprisonment not to exceed 6 months, 
or a fine of not more than $500, or both.^ 

Scott McLeod, Administrator, Bureau of In- 
spection, Security, and Consular Afl'aii-s, said the 
regulation reflects the legislative intent of the 83d 
Congress that section 4 of Public Law 770 (the 
Immigration and Nationality Act), which it im- 
plements, be administered in accordance with 
American legal standards. 

Heretofore, single convictions for rationing vio- 
lations and other minor otTenses had been a bar to 
visa issuance to aliens and had in many instances 
brought about introduction of private bills in the 
Congress for waiving of the single minor offense 
restriction in individual cases. 



" IhliL, Sept. 13, 1954, p. 371. 
November 7, 7954 



' For text of the regulation, dated Oct. 14, see 19 Fed. 
Reg. 6785. 



653 



Case of Joseph S. Petersen 

Press release 595 dated October 19 

Joseph Sidney Petersen, Jr., an American citi- 
zen, has been charged with obtaining chissified 
defense information whicli could be used to the 
advantage of a foreign power in violation of the 
laws of the United States. Tlie foreign govern- 
ment involved has now been publicly identified as 
the Netherlands Government. The U.S. Govern- 
ment has taken this matter up with the Nether- 
lands Government and has received that Govern- 
ment's assurances that it had believed that the 
transmission of this information was in accord- 
ance with an authorized arrangement between the 
two Governments. The Department has no reason 
to question the good faith of the Netherlands Gov- 
ernment which has been amply demonstrated by 
that Government's complete cooperation during 
the investigatory period. 

For its own part, however, the U.S. Govern- 
ment must affirm that the activities of the Amer- 
ican citizen involved in this case were completely 
unauthorized by his Government and were carried 
out under his own personal responsibility, with- 
out the knowledge of his superiors and in viola- 
tion of the laws of the United States. 



Reorganization of German Coal 
and Iron and Steel Industries^ 

The following Law No. 76 issued by the Allied 
High Commission for Germany, which amends 
Law No. 27 (Reorganization of German Coal and 
Iron and Steel Industries), is deemed to be of 
interest to certain United States citizens as having 
legal effect upon them or their property. 

Law No. 76 — Amending Law No. 27 ' ( Ueorganization of 
German Coal and Ikon and Steel Industries 

The Council of the Allied High Commission enacts as 
follows : 

ABTICLE 1 

Paragraph 1 of Article 4 of Law No. 27 is hereby 
amended to read as follows : 

"1. The Steel Trustee Association established under 
United States Military Government Law No. 75 and 
United Kingdom Military Government Law No. 75 and 
Regulation No. 2 issued thereunder shall continue to 



' 19 Fed. Reg. 6611. 
» 15 Fed. Reg. 8591. 



exist and shall exercise the functions conferred on it by 
the present Law or by regulations or orders made here- 
under. The Allied High Commission may remove any 
member of the Steel Trustee Association and apjxiint 
other members of such Association." 

AUTICI.E 2 

Sub-paragraph (c) of paragraph 1 of Article 7 of Law 
No. 27 is hereby amended to read as follows : 

"(c) Any other action taken in connection with reor- 
ganizations of liquidations under this Law to the extent 
provided by regulations or orders hereunder." 

ARTICLE 3 

Article 11 of Law No. 27 is hereby amended to read as 
follows : 

"ARTICLE 11 
BEGtTLATIONS AND ORDERS 

The Allied High Commission may issue such regula- 
tions and orders for the purpose of implementing any 
provision of this law as it shall deem necessary or proper 
in order to carry fully into effect the purposes of this 
Law." 

ARTICLE 4 

Article 13 of Law No. 27 is hereby amended to read as 
follows : 

"ARTICLE 13 
BOARD OF REVIEW 

1. There is hereby established a Board of Review. 
The number, nationality, and method of appointment of 
members of the Board shall be determined by the Council 
of the Allied High Commission. Each member shall be 
a qualified lawyer or expert who shall not be otherwise 
concerned with the administration of this Law. The deci- 
sion of a majority of the members of the Board shall con- 
stitute the decision of the Board. In the absence of a 
majority, the order which is the subject of review shall 
be deemed to have been confirmed. 

2. The Board shall have jurisdiction to review any 
order issued under paragraph (c) of Article 5 of this Law 
on the petition of any interested person to the sole extent 
of determining whether the distribution made to such 
person has afforded him fair and equitable treatment 
within the provisions of the Law and of the regulations 
issued thereunder. 

3. A petition for review of an order issued before May 
15, 1052 shall be tiled before November 15, 1952. A i)eti- 
tion for review of any order issued on or after May 15, 
1952. shall be filed within six months of the date of issue. 

4. The petition shall be tiled with the Board or with the 
authority which issued the order the review of which is 
sought. 

5. In considering a petition for review the Board shall 
determine solely whether the order the review of which 
is sought is supjiorted by substantial evidence and is cor- 
rect as a matter of law. The filing and jiendency of a peti- 
tion shall not operate as a stay of the order except and to 
the extent that a stay may be directed by the Board 
upon a motion for such relief. 

6. The Board shall estal)lish its rules of procedure. It 
may talie evidence of any kind and summon witnesses and 
experts in accordance witli the jirovisions of the German 
Code of Civil Procedure. It may demand security for 
costs from a petitioner, l)ut if the petition is granted in 
full, the .security shall be refunded and no costs shall 
lie levied against the i)etilioner. If the petition is not 
granted in full, the costs shall be assessed l)y the Board 



654 



Department of State Bulletin 



on tbe principles laid down in the KostenordnunR of No- 
veiiilier 25, lll.'i."> ( Kciclisgcsi'tzblatt 1, piiKe 1371)." 

Done at Hdihi, IVter-sliei-};, on Ajirii 30, l!t52. 

On bi'lialf of the ('ouncil of the Allied Mi^h Coniinissidu. 

IVONE KlRKPATIllCK, 

United Kintidom llitih Cotnis- 
iiioncr for (liriiiani/, Clwirman. 

For till' Secretary of State: 

Gkoffrey AV. Lkwis, 
Deputy Director^ Office of Ger- 
man Affairs, Bureau of European Affairs. 

October 7, 1954. 

World Bank Loan to El Salvador 
for Coastal Highway 

On October 12 the International Bank for Re- 
construction and Development made a loan of 
$11,100,000 to El Salvador to pay the foreign- 
exchange costs of completing an all-weather high- 
way along the Pacific Coast. The highway will 
be 190 miles long and will extend from the Guate- 
malan border to the Port of La Union on the Gulf 
of Fonseca. 

The Philadelphia National Bank is participat- 
ing in the loan, without the International Bank's 
guaranty, to the extent of $250,000 of the first 
maturity falling due on April 15, 1959. 

The primary purpose of the highway is to open 
new areas to cultivation and make possible in- 
creased agricultural production. El Salvador has 
a good highway system but lacks all-weather roads 
in the coastal zone. This region contains the only 
sizeable expanse of fertile land remaining to be 
developed in El Salvador. The coastal highway 
will provide an artery, connecting with existing 
roads, through the entire region and will be an 
important step toward opening the country's last 
major land reserve to cultivation and settlement. 
Eventually the highway may also become an im- 
portant international highway linking El Salva- 
dor with Guatemala and Honduras. 

Construction of the coastal highway was started 
several years ago. At present 25 miles are open 
to traffic, and another 17 miles are being con- 
structed and financed by the Government without 
outside assistance. The bank's loan will finance 
the foreign-exchange costs of the remaining sec- 
tions totaling 148 miles. These sections are 
expected to cost the equivalent of $16 million and 
to take 4 years to complete. 



Construction will bo done by contractors cho.scn 
through international competitive bidding for 
unit-price contracts based on detailed specifica- 
tions of each section to be built. The Govern- 
ment is taking steps to retain an experienced firm 
of consulting engineers to prepare the detailed 
plans and specifications for the project and invi- 
tations to bid, to analyze and make reconnnenda- 
tions on bids, and to supervise construction. 
Apart from some minor items, construction equip- 
ment and materials will be supplied by the con- 
tractors. The proceeds of the loan, therefore, will 
be used mainly to cover the foreign-exchange por- 
tion of iiayments to contractors. The Government 
will provide the required local currency from 
budgetary appropriations. The Highway De- 
partment of El Salvador will maintain the new 
highway and will expand its maintenance facili- 
ties for this purjiose. 

Because of inadequate roads in the coastal zone, 
transport costs are high throughout most of the 
area, access to markets is difficult, and farmers 
receive low prices for their produce. Consider- 
able waste is caused by the slow haulage of crops, 
the movement of livestock on the hoof, and the 
stoppage of transport during the rainy season. As 
a result, operators of large farms concentrate on 
producing a few cash crops of sufficient value to 
support high transport costs, and small farm own- 
ers find it difficult to do more than subsistence 
farming. 

The new highway, with feeder roads to be built 
by the Government, should alleviate this situa- 
tion. With good roads, providing year-round 
access to wider markets at lower transport costs, 
agricultural production in the coastal zone should 
increase in value by the equivalent of about $10 
million a year. In addition, denser settlement of 
the zone will help relieve population pressure 
elsewhere in El Salvador. Roads alone will not 
bring about these results, but the Government is 
also planning to continue its efforts to improve 
health conditions in the coastal plains, to promote 
soil conservation and better production methods 
through agricultural extension services, and to fa- 
cilitate the establishment of more adequate proc- 
essing, storage, and credit facilities. 

This is the second bank loan to El Salvador. A 
loan of $12,545,000 was made in December 1949 
for the construction of a 30,000-kilowatt hydro- 
electric plant on the Lempa River, which began 
operating in June 1954. Most of the electricity 



November 1, 1954 



655 



from the new plant is being distributed in San 
Salvador, the capital, and in San Miguel, a key 
industrial center. 

After having been approved by the Executive 
Directors, the loan documents were signed on 
October 12 by Hector David Castro, Ambassador 
for El Salvador at Washington, and Rafael Meza 
Ayau, Minister of Economy of El Salvador, on 
behalf of the Government of El Salvador, and by 
Eugene R. Black, President, on behalf of the 
International Bank. 



imports on the domestic marketing program for 
edible tree nuts. 

The proclamation applies to shelled almonds 
and blanched, roasted, or otherwise prepared or 
preserved almonds (not including almond paste) 
and to shelled filberts, whether or not blanched. 

The Tariff Commission did not report or make 
recommendations with respect to walnuts. The 
Commission stated that it was making no findins 
at this time on walnuts because further investiga- 
tion was needed. 



Import Fees Imposed 
on Almonds and Filberts 

White House Office press release dated October 11 

The President on October 11 issued a proclama- 
tion imposing a fee of 10 cents a pound on imports 
of almonds into the United States over 5 million 
liounds, and a fee of 10 cents a poimd on imports 
of filbei-ts into the United States over 6 million 
pounds, during the period October 1, 1954, to Sep- 
tember 30, 1955, inclusive. 

The President's action modified the recommen- 
dations of the Tariff Commission. In its i-eport^ 
the Conmiission recommended a 10 cents per pound 
fee on imports of almonds above 41^ million 
pounds and a 10 cents per pound fee on imports of 
filberts above 5i/^ million pounds. 

During the quota year just ended there was a 
5 cents per pound fee on the first 7 million pounds 
of almonds imported into tliis country, which is 
now revoked, and a 10 cents per pound fee on im- 
ports in excess of 7 million pounds. There was no 
quota or fee on imports of filberts during the past 
year. During the previous year, however, there 
was an absolute quota on imports of filberts of 
41/4 million pounds. 

The President's action was based on the recent 
unanimous report on edible tree nuts by the United 
States Tariff Commission. The Commission's in- 
vestigation was made under section 22 of the Agi"i- 
cultural Adjustment Act, as amended, which au- 
thorizes limitations on imports when imports are 
interfering with or tlireaten to interfere with do- 
mestic price-support or marketing programs. 

The Tariff Commission's i-cport 7-esulted from its 
fifth continuing investigation into the effect of 



Text of Proclamation 3073 ^ 

1. Whereas, pursuant to section 22 of the Agricultural 
Adjustment Act, as added by section 31 of the Act of 
August 24, 1935, -19 Stat. 773, reeuacted by section 1 of 
the Act of June 3, 1937, 50 Stat. 240, and amended by sec- 
tion 3 of the Act of .July 3, 1948, 02 Stat. 124S, 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), 
on April 13, 1950 the President caused the United States 
Tariff Commission to make an investigation to determine 
whether almonds, filberts, walnuts, Brazil nuts, or cashews 
are being or are practically certain to be imported into 
the United States under such conditions and in such quan- 
tities as to render or tend to render ineffective, or mate- 
rially interfere with, certain programs undertaken by the 
Department of Agriculture with respect to almond,s, 
pecans, filberts, or walnuts, or to reduce substantially the 
amount of any product processed in the United States from 
almonds, pecans, filberts, or walnuts with respect to which 
any such program is being undertaken ; and 

2. Whereas the said Commission instituted such an in- 
vestigation on April 13, 1950, which it has been conducting 
since that date on a continuing basis and In the course of 
which it has from time to time reported to the President 
regarding the need for the imposition of restrictions pur- 
suant to the said section 22 in order to prevent imports 
of almonds, filberts, walnuts, Brazil nuts, or cashews from 
rendering ineffective, or materially interfering with, the 
said programs, or from reducing substantially the amount 
of any product processed in the United States from al- 
monds, pecans, filberts, or walnuts with respect to which 
any such program is being undertaken ; and 

3. Whereas import fees on shelled almonds and 
blanched, roasted, or otherwise prepared or preserved al- 
monds (not including almond paste) imposed pursuant 
to the I'resident's proclamation of Septemlier 20, 19."i3 
(Proclamation 3034; 18 F. R. 6345),' which proclamation 
was issued under the authority of the said section 22, will 
cease to apply to such articles entered, or withdrawn from 
warehouse, for consumption after September 30, 1954 ; and 

4. Whereas further in the course of the said investiga- 
tion, on September 24, 1954, the said Commission reported 



' Copies of the report may be obtained from the U.S. 
Tariff Commission, Wa.shington 25, D. C. 



' 19 Fed. Rni. 61 ".23. 

' BuTJjn-iN of Nov. 2, 1953, p. 602. 



656 



Department of Sfafe Bulletin 



to mo its finding's ri'iiardiir^ tlic nooil for imiiDrt rcstrlf- 
tioiis under the said sectiiui 21! on cerliiin tree nuts after 
September 30, 1954 ; and 

5. Whereas, on the basis of siuh rejiort of St'pteml)er 
24, 1954, 1 find tliat shelled almonds, and blanched, roasted, 
or otherwise prepared or iireserved almonds (not inclnd- 
inu almond paste), and shelled lilherts, whether or not 
lilanched, are prnclicully certain to be imported into the 
United States during the period October 1, 1SI51, to Sep- 
tember 30, 1955, both dates inclnsive, under siieh condi- 
tions and in such iiuantities as to render or tend to render 
inelTective, or materially interfere with, the programs 
undertaken by the Department of Agriculture under the 
Agricultural Marketing Agreement Act of 1037, as 
amended, with respect to almonds and filberts, which pro- 
grams will be in operation during such period ; and 

li. Whkkkas I find and declare that the imposition of the 
import fees hereinafter proclaimed is sliown by such in- 
vestigation of the Commission to be necessary in order 
that the entry of almonds and filberts described in the 
fifth recital of this proclamation will not render or tend 
to render ineffective, or materially interfere with, the 
said programs imdertaken by the Department of Agricul- 
ture : 

Now, THEREFORE, I, DWIGHT D. EISENHOWER, Presi- 
dent of the United States of America, acting under and by 
virtue of the authority vested in me by the said section 
22 of the Agricultural Adjustment Act, as amended, do 
hereby proclaim that a fee of 10 cents per pound, but not 
more than 50 per centum ad valorem, shall be Imposed 
upon shelled almonds and blanched, roasted, or otherwise 
prepared or preserved almonds (not including almond 
paste) entered, or withdrawn from warehouse, for con- 
sumption during the period October 1, 1954, to September 
30, 1955, both dates inclusive, in excess of an aggregate 
quantity of 5,000,000 pounds ; and that a fee of 10 cents per 
pound, but not more than 50 per centum ad valorem, shall 
be imposed upon shelled filberts, whether or not blanched, 
entered, or withdrawn from warehouse, for consumption 
during the period October 1, 1954, to September 30, 1955, 
both dates inclusive, in excess of an aggregate quantity 
of 0,000,000 pounds. The said fees shall be in addition 
to any other duties imposed on the importation of such 
almonds and filberts. 

In witness whereof, I have hereunto set my hand and 
caused the Seal of the United States of America to be 
afBxed. 
DOTTE at the City of Washington this eleventh day of 

October in the year of our Lord nineteen hundred 
[seal] and fifty-four, and of the Independence of the 

United States of America the one hundred and 

seventy-ninth. 

By the President: 

Herbert Hoover, Jr., 

Acting Secretary of State. 



Limitations on Imports 
of Oats Into United States 

White House press release dated October 4 

Tlie President on October 4 sifjiiecl a procla- 
mation liniitin<^ imports of oats into the United 
States from all sources to 40 million bushels dur- 
ing: the period October 1, 1954, to September 30, 
1955, inclusive. 

The President's action was based on the recent 
unanimous report on oats by the United States 
Tariii' Commission.' The Commission's investi- 
gation was made under section 22 of the Agricul- 
tural Adjustment Act, as amended, which atitlior- 
ized limitation on imports when imports are inter- 
fering with or threaten to interfere with domestic 
price-support or marketing progi-ams. The allo- 
cation between Canada and all other foreign coun- 
tries set forth in the proclamation is based upon 
total imports during five marketing seasons, 1948- 
49 to 1952-53. The proclamation applies to oats, 
hulled and unhulled, and unhulled ground oats. 

The Tariff Commission's report resulted from 
its second investigation into the effect of imports 
of oats on the domestic price-support program for 
oats. This second investigation was directed by 
the President on August 20, 1954.^ The Tariff 
Commission's first investigation and report re- 
sulted in a proclamation on December 27, 1953,^ 
limiting imports of oats into the United States 
from sources other than Canada to 21/^ million 
bushels during the period December 23, 1953, to 
September 30, 1954. From December 10, 1953, to 
September 30, 1954, Canada voluntarily limited 
shipments of oats to the United States to 23 mil- 
lion bushels. 



Text of Proclamation 3070* 

Whereas, pursuant to section 22 of the Agricultural 
Adjustment Act, as added by section 31 of the act of 
August 24, 19S5, 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. 
024), the Secretary of Agriculture has advised me that 



^ Copies of the report may be obtained from the U.S. 
Tariff Commission, Washington 25, D. C. 
' Bulletin of Sept. 6, 1954, p. 340. 
' IMil., Jan. 11, 1954, p. 57. 
' 19 Fed. Reg. 6471. 



November 7, J 954 



657 



he has reason to believe that oats, hulled or unhuUed, and 
unhulled ground oats are practically certain to be im- 
ported into the United States after September 30, 1954, 
under such conditions and in such quantities as to render 
or tend to render ineffective, or materially interfere with, 
the price-support program undertaken by the Department 
of As,Tieulture with respect to oats pursuant to section 
301 and 401 of the Agricultural Act of 1949, as amended, 
or to reduce substantially the amount of products proc- 
essed in the United States from domestic oats with respect 
to which such program of the Department of Agriculture 
is being undertaken ; and 

Whebeas, on August 20, 1954, I caused the United 
States Tariff Commission to make an Investigation under 
the said section 22 with respect to this matter; and 

WHBatEAS, the said Tariff Commission has made such 
investigation and has reported to me its findings and 
recommendations made in connection therewith ; and 

Whereas, on the basis of the said investigation and re- 
port of the Tariff Commission, I find that oats, hulled and 
unhulled, and unhulled ground oats, in the aggregate, are 
practically certain to be imported into the United States 
during the period from October 1, 1954, to September 30, 
1955, inclusive, under such conditicms and in such quanti- 
ties as to render or tend to render ineffective, or materi- 
ally interfere with, the said price-support program with 
respect to oats ; and 

Whereas, I find and declare that the imposition of 
the quantitative limitations hereinafter proclaimed is 
shown by such investigation of the Tariff Commission to 
be necessary in order that the entry, or withdrawal from 
warehouse, for consumption of oats, hulled and unhulled, 
and unhulled ground oats will not render or tend to render 
ineffective, or materially interfere with, the said price- 
support program : 

Now, THEREFORE, I, DWIGHT D. EISENHOWER, Presi- 
dent of the United States of America, acting under and 
by virtue of the authority vested in me by the said section 
22 of the Agi-icultural Adjustment Act, as amended, do 
hereby proclaim that the total aggregate quantity of oats, 
hulled and unhulled, and unhulled ground oats entered, 
or withdrawn from warehouse, for consumption during 
the period from October 1, 1954, to September 30, 1055, 
inclusive, shall not be permitted to exceed 40,000,000 
bushels of 32 pounds each, which permissible total quan- 
tity I find and declare to be proportionately not less than 
50 per centum of the total average aggregate annual 
quantity of such oats entered, or withdrawn from ware- 
house, for consumption during the representative period 
from July 1, 1948, to .Tune 30, 1953, inclusive ; and that, 
of the foregoing permissible total quantity, not more than 
39,312,(X)0 bushels of 32 pounds each shall be imported 
from Canada and not more than 688,000 bushels of 32 
pounds each shall be imported from other foreign coun- 
tries. 

The provisions of this proclamation shall not apply 
to certified or registered seed oats for use for seeding 
and crop-improvement purposes, in bags tagged and 
sealed by an officially recognized seed-certifying agency of 
the country of production : Provided, ( a ) that the indi- 
vidual shipment amounts to 100 liushels (of 32 pounds 
each) or less, or (b) that the individual shipment 



amounts to more than 100 bushels (of 32 pounds each) 
and the written approval of the Secretary of Agriculture 
or his designated representative 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 merchandise as set forth in the entry, plus 
the estimated duty as determined at the time of entry, 
conditioned upon the i)roduction of such written ap- 
proval within 6 months from the date of entry. 

In witness whereof, I liave hereunto set my hand and 
caused the seal of the United States of America to be 
affixed. 
Done at the City of Washington this 4th day of Oc- 
tober in the year of our Lord nineteen hundred 
[seal] and fifty-four, and of the Independence of the 
United States of America the one hundred and 
seventy -ninth. 

By the President: 

John Foster Dulles 

Secretary of State. 



Four Engineers Go to Thailand 
To Plan Highway Project 

The Foreign Operations Administration an- 
nounced on October 11 that four highway engi- 
neers have left for Bangkok, Thailand, to begin 
an engineering reconnaissance for a modern high- 
way to link Bangkok and the isolated northeast 
provinces. The Governments of the United States 
and Thailand are preparing to start construction 
before the end of 1954. 

Called the "Northeast Highway," the road will 
cost an estimated $7.5 million and is scheduled for 
completion in about a year. It will run from 
Saraburi, near Bangkok, to Ban Phai, 200 miles 
northeastward in the heart of the northeast pla- 
teau, passing through Korat, the northeast's prin- 
cipal city. 

Tlie road is seen as a key to the economic de- 
velopment of the potentially rich northeast re- 
gion. It will strengthen the economic and social 
ties of the northeast with the Bangkok area, bring- 
ing about more export of produce from the north- 
east and enabling that area to import other needed 
goods to improve the standard of living of the 
people. 



658 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings' 

Adjourned during October 1954 

I'nksco '2ii InttTiiatioiial Si'iiiiiiar on the Hole of Museums in Educa- Athens Sept. 12-Oct. 10 

lion. 

Fao Council: 20th Session Rome Sept. 27-Oct. 8 

Nine Power Meeting London Sept. 28-Oct. 3 

International Congress of Chrononietry Paris Oct. 1-5 

International Philatelic and Postal Exliibition New Delhi Oct. 1-5 

Consultative Committee for Economic Development in South and Ottawa Oct. 4-9 

Southeast Asia ("Colombo Plan"): Ministerial fleeting. 

F.\o Working Party on Fertilizers: 4th Meeting Tokyo Oct. 4-10 

Fao Working Party on Rice Breeding: 5th Meeting Tokyo Oct. 4-10 

Paso Executive Committee: 23d Meeting Santiago Oct. 4—6 

International Council for Exploration of the Sea: 42d Annual Meet- Paris Oct. 4-12 

ing. 

UNESCO Seminar for Leaders of Youth Movements Habana Oct. 5-26 

10th General Conference on Weights and Mea-sures Paris Oct. 5-14 

Caribbean Commission and Unesco: .Joint Technical Conference on Port-of-Spain Oct. 6-15 

Education and Small-Scale Farming in Relation to Community 

Development. 

2d International Meeting of Communications Genoa Oct 6-12 

U. X. EcAFK Subcommittee on Electric Power: 4th Session .... Tokyo Oct. 6-11 

Paso 14th Pan American Sanitary Conference and 6th Meeting of the Santiago Oct. 8-22 

Recional Committee of Who. 

General Assembly of the International Commission of Criminal Po- Rome Oct. 9-14 

lice: 23d Session. 

Fao International Rice Commission: 4th Se.ssion Tokyo Oct. 11-19 

Ilo Iron and Steel Committee: 5th Session Geneva Oct. 11-23 

U. N. EcE Committee for Development of Trade: 3d Session . . . Geneva Oct. 11-16 

International Wheat Council: 16th Session London Oct. 12-17 

Four Power Meeting Paris Oct. 20-23 

Nine Power Meeting Paris Oct. 21-23 

Nac Special Ministerial Meeting Paris Oct. 22-23 

Paso Executive Committee: 24th Meeting Santiago Oct. 22-23 

International North Pacific Fisheries Commission: 2d Meeting. . . Vancouver Oct. 25-30* 

U.N. EcAFE Working Party on Financial Aspects of Economic Bangkok Oct. 25-30 

Development Programs. 

Gatt .Id //oc Committee on Agenda and Intersessional Business. . Geneva Oct. 26-27 

UNESCO Executive Board Rio de Janeiro Oct. 31 (1 day) 

In Session as of October 31, 1954 

U.X. General Assembly: 9th Regular Session New York Sept. 21- 

IcAO Air Transport Committee: 23d Session Montreal Sept. 27- 

IcAO North Atlantic Regional .\ir Navigation Meeting: 3d Session . Montreal Oct. 5- 

Wmo Ad Hoc Meeting on North Atlantic Meteorological Telecom- Montreal Oct. 5- 

munications. 

IcAO Southeast Asia Regional Communications Coordinating Bangkok Oct. 18- 

IW Meeting. 

I1.0 Metal Trades Committee: 5th Session Geneva Oct. 25- 

General Agreement on Tariffs and Trade: 9th Session of Contracting Geneva Oct. 28- 

"*" Parties. 

Bogota International Exposition Bogotd Oct. 29- 

Scheduled November 1, 19S4-January 31, 1955 

UNESCO Budget Committee Montevideo Nov. 1- 

Unesco Executive Board Montevideo Nov. 1- 

U.N. EcAFE Working Party of Senior Geologists on Preparation of Bangkok Nov. 1- 

a Recional Geological Map for Asia and the Far East. 



' Prepared in the Office of International Conferences, Oct. 21, 1954. Asterisks indicate tentative dates. Following 
is a list of abbreviations: Unesco, United Nations Educational, Scientific and Cultural Organization; Fao, Food and 
Agriculture Organization; Paso, Pan American Sanitary Organization; U. N., United Nations; Ecafe, Economic Com- 
mission for Asia and the Far East; Who, World Health Organization; Ilo. International Labor Organization; Ece, Economic 
Commission for Europe; Nag, North Atlantic Council; Gatt, General Agreement on Tariffs and Trade; Icao, Inter- 
national Civil Aviation Organization; Wmo, World Meteorological Organization; Icem. Intergovernmental Committee 
for European Migration; Ecosoc, Economic and Social Council. 

November 7, 1954 659 



Calendar of Meetings — Continued 

Scheduled November 1, 1954-January 31, 1955 — Continued 

Fao European Forestry Commission: Working Party on Affores- 
tation. 

1st World Conference of Printing Enterprises 

14tli International Congress of Military Medicine and Pharmacy. . 

International Philatelic Exposition 

Fao European Forestry Commission: 7th Session 

U.N. EcAFE Subcommittee on Mineral Resources (Committee on 
Industry and Trade): 1st Session. 

Fao Meeting on Economic Aspects of the Rice Situation 

UNESCO General Conference: 8th Session 

3d Inter-American Accounting Conference 

Customs Cooperation Council 

Icao Special European-Mediterranean Communications Meeting . 

Ilo Governing Body: 127th Session . 

Meeting of Ministers of Finance or Economy (4th Extraordinary 
Meeting of Inter-American Economic and Social Council). 

IcEM Ad Hoc Subcommittee on Draft Rules and Regulations .... 

International Sugar Council: Statistical Committee 

Ilo 8th International Conference of Labor Statisticians 

International Sugar Council: Executive Committee 

International Sugar Council: 2d Session 

IcEM Subcommittee on Finance: 6th Session 

Caribbean Commission; 19th Meeting- 

IcEM 8th Session of the Intergovernmental Committee 

Nac Ministerial Meeting 

Fao 4th World Forestry Congress 

Inter-American Seminar on Secondary Education 

U. N. Ecosoc 18th Session of Council (resumed) 

10th Pan American Child Congress 

U. N. Ecafe Subcommittee on Trade: 1st Session 

Who Standing Committee on Administration and Finance .... 

Pan American Highway Congress: Permanent Executive Com- 
mittee Meeting. 

U. N. Ecosoc Commission on International Commodity Trade: 1st 
Session. 

Who Executive Board: 15th Meeting 

U.N. Ecafe Inland Transport Committee: 4th Session 



Geneva Nov. 5- 

Sao Paulo Nov. 6- 

Luxembourg Nov. 7- 

Sao Paulo Nov. 7- 

Geneva Nov. 8- 

Bangkok Nov. 8- 

Rangoon Nov. 11- 

Montevideo Nov. 12- 

Sao Paulo Nov. 14- 

Brussels Nov. 15- 

Paris Nov. 1&- 

Rome Nov. 16- 

Rio de Janeiro Nov. 22- 

Geneva Nov. 22- 

London Nov. 22- 

Geneva Nov. 23- 

London Nov. 23- 

London Nov. 24- 

Geneva Nov. 25- 

Cayenne (French Guiana) . Nov. 29- 

Geneva Nov. 30- 

Paris November* 

Dehra Dun (India) .... Dec. 11- 

Santiago Dec. 29- 

New York December 

Panama City Jan. 10- 

Hong Kong Jan. 10- 

Geneva Jan. 10- 

Mexico Jan. 13- 

New York Jan. 17- 

Geneva Jan. 18- 

Bangkok Jan. 24- 



Disarmament Talks in 
U.N. Political Committee 

Statements by James J. Wadsworth 

U.S. Representative to the General Assenibly ' 

U.S. delegation press release 1981 dated October 19 

Tlie general debate on disarmament has gone on 
for over a week.^ We think that the discussion 
has been extremely useful in clarifying a number 
of important matters. It has shown that the dif- 
ferences between the Soviet Union and the free 
world are almost as gi-eat as ever. 

The two sides are in the position of two politi- 



'Made in Committee I (Politieal and Security) on Oct. 
10 and Oct. 22. 

^ For statements by Ambassador Lodge and Ambassador 
Wadsworth on Sept. 30 and Oct. 12, and the text of the 
Soviet proposal, see Bot.letin of Oct. 25, 1954, p. 619. 



cal parties seeking to elect their slates in a given 
community. Both parties have put anticrime 
planks in their platforms. Both agree that we 
need policemen. But one party wants to let its 
policemen cover their whole beats and make ar- 
rests pursuant to law whenever they discover 
crime. The other party says, "Oh, no. The 
policeman can onlj? stay on Main Street, and if he 
should observe a crune there, he can merely report 
the commission of the crime to the Alunicipal 
Council, which in due course will hold a meeting. 
The policeman cannot make the arrest." 

It seems appropriate at this time to review the 
situation to see exactly where we stand. First, 
however, I should like to stress a point which has 
not been discussed very fully. The greater part 
of the discussion in this committee has been de- 
voted to the Anglo-French memorandum of June 
11 ' and to the Soviet proposals of September 30. 



' /?)!(/., A<ig. 2, 1954, p. 182. 



660 



Department of State Bulletin 



This is entirely fitting since the Britisli-Frencli 
ineinonuuhini is tlie instriunent which liud led to 
any narrowing of tlie gap between tlie Soviet 
I'nion and the free worhi tlnit may have talcen 
place. AVhat 1 want to stress now is that, im- 
portant as they are, neither the Anglo-French 
uiemoiandiiui nor the Soviet proposal, noi- the two 
combined, can be said to constitute a complete tlis- 
armament program. 

Over a period of years agreement has been 
ivached on jwst what are the chief elements of such 
a program. Last year these elements were set 
forth in the first prcaiubular paragrapli of the 
General Assembly resolution of November 28, a 
paragra])h which received 54 affirmative votes and 
no negat i ve votes.* These elements were : frfit, the 
regidation, limitation, and balanced reduction of 
all armed forces and all armaments; second, the 
elimination and prohibition of atomic, hydrogen, 
and other tj'pes of weapons of mass destruction; 
third, the effective international control of atomic 
energy to ensure the prohibition of atomic weap- 
ons and the use of atomic energy for peaceful pur- 
poses only; and fourth., the carrying out of the 
whole program under effective international con- 
trol and in such a way that no state should have 
cause to fear that its security was in danger. 

During the discussions in the Disarmament 
Commission and in the subcommittee this summer, 
it became apparent that there was a ffth element 
of a disarmament program which was not com- 
pletely covered bj' any of the four elements de- 
scribed in the General Assembly resolution: The 
fifth element was the relation of the other four ele- 
ments, or, to put it in other words, the timing and 
phasing of the prohibitions and reductions and of 
the establishment of international controls. 

The Anglo-French memorandum was written to 
deal with this fifth element. Since it covers the 
relationship of the other four elements, naturally 
it refers to them. The ^Vnglo-French memoran- 
dum was, of course, never intended to be a complete 
disarmament program. For example, it does not 
contain any formula for determining the levels to 
which armed forces and atomic armaments would 
be i-educed. It does not go into any detail as to 
the type of international control macliinery which 
would be set up or as to the powers and functions 
of an international control organ. It does not 



' /bid., Dec. 14, 1953, p. 838. 
UoM&mhet J, 1954 



deal with mnnerous basic problems in connection 
with the prohibition of atomic weapons, such as 
the type of installations which must bo controlled, 
or the nature of the control. These latter prob- 
lems are treated fully in the United Nations 
atomic energy plan approved by previous Gen- 
eral Assemblies. The Soviet Union does not agree 
with the solution suggested in the United Nations 
plan for the control of atomic energy. But we 
feel sure that the U.S.S.Il. will agree that any 
solution of the problem of atomic weapons must 
cover the subjects that are dealt with in the United 
Nations atomic energy plan. 

In short, the Anglo-French memorandum and 
the Soviet draft resolution, however different they 
may be, both deal with the same set of problems. 
They do not by themselves deal with all of the basic 
problems of a disarmament program. One of the 
flaws of the Soviet resolution, in our opinion, is 
the following sentence : "Accordingly the conven- 
tion should contain the following basic pro- 
visions." We read this to imply that the Soviet 
Union regards its proposal as a disarmament plan 
rather than merely one of the elements of a dis- 
armament plan. 



Fundamental Differences 

It may be useful at this time to point out just 
where we stand, in the thought that, if we know 
where we stand, it will be easier to plot our future 
course. 

Three fundamental and basic differences have 
emerged between the Soviet Union and the other 
members of the Disarmament Commission sub- 
conunittee. The f,rst of these relates to the reduc- 
tion of armed forces and nonatomic armaments. 
The position of Canada, France, the United King- 
dom, and the United States is that we should first 
agree upon levels to which armed forces and arma- 
ments will be reduced. The amounts of reductions 
would be the difference between these agreed levels 
and the levels of December 31, 1953. These reduc- 
tions would take place in two stages : 50 percent of 
reductions in the first stage and 50 percent in the 
second stage. The Soviet proposal goes along with 
the idea that the reductions shall be made from 
the December 31, 1953, level and that the reduction 
shall take place in two stages : 50 percent in each 
stage. Mr. Vyshinsky, however, has made it clear 
that the Soviet Union still favors a "proportional" 
reduction. In other words, the Soviet Union still 



661 



favors an overall reduction of one-third, or of some 
other fraction, applicable to all countries, the type 
of reduction which would perpetuate the present 
imbalance of armed forces and conventional arma- 
ments in favor of the Soviet Union. However, 
Mr. Vyshinsky says this is a matter to be decided 
by the international convention. 

The second major divergence relates to the 
powere and authority of the international control 
machinery. Mr. Vyshinsky went back once again 
to the detailed Soviet proposals of June 1947 con- 
cerning an international control organ. The pro- 
posals, when originally made, were made to the 
Atomic Energy Commission and related only to 
the control of atomic energy. They were discussed 
fully and exhaustively in the United Nations 
Atomic Energy Commission in 1947 and 1948. At 
that time a committee of the Atomic Energy Com- 
mission, consisting of Canada, China, France, and 
the United Kingdom, prepared a working paper 
which concluded "that the Soviet Union proposals 
ignore the existing technical knowledge of the 
problem of atomic energy control, do not provide 
an adequate basis for the effective international 
control of atomic energy and the elimination from 
national armaments of atomic weapons, and there- 
fore do not confonn to the terms of reference of 
the Atomic Energy Commission." This working 
paper was included as annex IV of the Tliird 
Eeport of the Atomic Energy Commission, dated 
May 17, 1948, and was approved by the General 
Assembly at the time it adopted the United Na- 
tions atomic energy plan. 

The Soviet proposals then dropped out of sight, 
until suddenly the Soviet representative revived 
them in the subcommittee discussion in London 
last spring. Wliy did they drop out of sight? 
You will recall that in 1952 Mr. Vyshinsky brought 
to the Sixth General Assembly some new proposals 
on international control which he glorified as a 
great concession to the West.'^ He conceded at that 
time that the international control organ shall 
have the right to conduct inspection on a continu- 
ing basis but should not be entitled to interfere in 
the domestic affairs of states. Since this was in 
contrast to the Soviet's previous insistence on 
periodic inspection, we all hoped that a door had 
been opened to agreement on a fundamental prin- 
ciple. During the disarmament discussions in 1952 



we strove without success to find out what the 
Soviet Union meant by "continuous inspection." 
Finally, in London last spring the Soviet repre- 
sentative tried to put life in the ghost of 1947, as 
his definition of "Inspection on a continuing basis." 
He thus succeeded only in demonstrating that the 
"continuous inspection" of 1952 was identical ta 
the "periodic inspection" of 1947. The great con- 
cession of 1952 turned out to be no concession 
at all. 

Now, since September 30, the Soviet Union has 
talked about an international control organ with 
"full powers of supei-vision, including the power 
of inspection on a continuing basis to the extent 
necessary to ensure implementation of the conven- 
tion by all states." At first glance this looked good 
since, in theory at least, it could encompass the 
powers which this Assembly has decided are 
essential. 

On October 15 Mr. Vyshinsky continued to as- 
sert that the Soviet Union favors a control organ 
capable of "powerful" and "effective" control. 
Exactly what powers would this mighty and 
powerful organ have? On October 15, and again 
yesterday, ]\Ir. Vyshinsky answered this question 
by again calling up the ghost of 1947 and reading- 
to us these 1947 proposals. 

Furthermore, he referred to the United States 
working paper on the control organ presented 
last smnmer by Mr. [Morehead] Patterson.^ He 
pointed out that the United States paper took the 
position that in cases of violations the control com- 
mission can close plants, and then he said : 

... if some people are prepared to accept that, we are 
not to be counted among them. I must say that quite 
openly. We feel that to vest such functions In a control 
commission is impossible. 

It is clear that on this all-important question 
of the powers of the international control organ 
there has been no change in the Soviet position. 
Once more, Mr. Vyshinsky continues to insist, just 
as he did in 1947, that the really important powers 
in connection with a disarmament program must 
be exercised by the Security Council, wliere all of 
the permanent members have a veto. 

"We fail to see why the U.S.S.R. objects to 
thorougli and effective international control. If 
the U.S., the U.K., France, and all the rest of us 
are willing to subject ourselves to it, what has the 
Soviet to fear? Are we to assume that she has 



' Ihlil., .Tan. 2S, 1952, p. 127. 
662 



' Ibid., Aug. 2, 1954, p. 179. 

Deparfmenf of State Bulletin 



sometliiiip; to hide — something she doesn't want 
the world to know? How can any disarmament 
plan work if, as I said last week, the steps of the 
plan cannot be carried out in full sight of each 
other? 

The Soviet accuses the U.S. of preparing for 
another war; of aggression against Formosa and 
all kinds of other fantastic crimes and intentions. 
How best can we display to the world that we are 
completely honest in our statements and straight- 
forward in our intentions ? "We think it is by open- 
ing wide our doors and inviting an international 
control body to come in freely and fully ; to inspect 
our atomic installations, our munitions plants, and, 
yes, even our button factories. What is more, we 
are prepared to accept corrective action on the part 
of the control organ in the event a violation is 
found. 

On the other hand, we in the United States sus- 
pect the Soviet Union of planning world conquest 
behind their facade of disarmament statements. 
Will they take the same steps to reassure the world 
that we are prepared to take ? While Mr. Vyshin- 
sky answered "No," he kept one ember burning. 
He suggested that this problem too should be 
worked out in the international convention. 

Question of Timing and Phasing 

The third fundamental difference between the 
Soviet position and that of the other states which 
participated in the London discussion relates to the 
timing and phasing of the most important ele- 
ments of the disarmament program. Mr. [Sel- 
wyn] Lloyd got to the heart of this diffei'ence in 
the second question which he addressed to Mr. 
Vyshinsky last Friday. He asked : "Does the So- 
viet Government agree that the officials of the 
control organ should be in position, ready and able 
to function in the countries concerned, before those 
countries begin to carry out the disarmament pro- 
gram?" There is nothing that I can add to Mr. 
Lloyd's explanation of the fundamental signifi- 
cance and importance of this problem. If we in- 
terpret Mr. Vyshinslcj^'s answer correctly, he 
didn't say "Yes" and he didn't say "No"; once 
again, he said : "This will be decided in the con- 
vention." Can we assume that the Soviet attitude 
will be any less rigid when we come to negotiate 
the convention ? After all, they have never shown 
themselves willing to discuss in detail any of the 
concrete proposals brought forward to date. 



But, in his A-ery last intervention on October 15, 
Mr. Vyshinsky took pity on us and did answer Mr. 
Lloyd's question in a manner which, I fear, is all 
too clear. He referred to paragi-aph 5 of the 
Franco-British memorandum and noted that Mr. 
Lloyd had stated that we diverged on this point. 
Tlien Mr. Vyshinsky said, "Tliat is correct ; \vc do." 
Now what does tlie fifth paragraph of the Franco- 
British memorandum say ? It says : 

5. After the constitution and positioninK of the Control 
Organ, which shiill l)e carried out within a specifiod time, 
and lis .soon as tlie Omtrol Organ reports that it ia able 
effectively to enforce them, tlie following measures shall 
cuter Into effect. 

So it is clear that, in substance, Mr. Vyshinsky's 
answer to Mr. Lloyd's second question is strongly 
in the negative. 

There are other differences, but the three which 
I have just outlined are the most important. As 
a result of the discussions in this committee which, 
I repeat, have been extremely useful and which, 
in my view, have come better to grips with the 
problem than any previous United Nations discus- 
sions, where do we stand and where do we go? 
Ijct us admit again that on one important point 
the differences have been naiTowed. The Soviet 
Union now admits that the disarmament program 
can take place in stages and that 50 percent of the 
reductions in armed forces and conventional arma- 
ments can take place before the prohibition of 
atomic weapons. Despite this concession, we are 
still some distance from the down-to-earth de- 
tailed negotiations that will be necessary to work 
out a disarmament convention. It would not be 
very profitable to start discussing the number of 
aircraft carriers, the number of bombers, the num- 
ber of ground forces that each state will be per- 
mitted under a disarmament program until we 
have some agreement on how to work out those 
figures. Mr. Vyshinsky says that the Soviet Union 
has one view and that the other members of the 
subcommittee have a different view and that we 
will work this out in the convention. 

Similarly, it would not be very profitable to 
work out the machinery, powers, and functions of 
an international control organ and then to find 
out that the control organ will never be in a posi- 
tion to exercise its powers. Here, again, Mr. Vy- 
shinsky says : "This is a question of method. Let's 
leave it to the convention." 

That is where we stand today. Now where 



November 1, 1954 



663 



Resolution on Disarmament^ 

U.N. doc. A/C.l/752/KeT. 2 dated October 22 

The General Assembly, 

Reaffirming the responsibility of the United Na- 
tions for seeking a solution of the disarmament 
problem, 

Coiiscions that the continuing development of 
armaments increases the urgency of the need for 
such a solution. 

Having considered the Fourth Report of the Dis- 
armament Commission of 29 July 1954 (D.C/53 and 
D.C/55), and the documents annexed thereto, and 
the Soviet draft resolution (A/C.1/750) concerning 
the conclusion of an international convention 
(treaty) on the reduction of armaments and the 
prohibition of atomic, hydrogen, and other weapons 
of mass destruction, 

1. Concludes that a further effort should be made to 
reach agreement on comprehensive and co-ordinated 
proposals to be embodied in a draft international 
disarmament convention providing for : 

(a) The regulation, limitation and major reduc- 
tion of all armed forces and all conventional 
armaments ; 

(b) The total prohibition of the use and manu- 
facture of nuclear weapons and weapons of mass 
destruction of every type, together with the con- 
version of existing stocks of nuclear weapons for 
peaceful purposes ; 

(c) The establishment of effective international 
control, through a control organ with rights, pow- 
ers and functions adequate to guarantee the ef- 
fective ob.servance of the agreed reductions of all 
armaments and armed forces and the prohibition 
of nuclear and other weapons of mass destruc- 
tion, and to ensure the use of atomic energy for 
peaceful purposes only; 

The whole programme to be such that no State 
would have cause to fear that its security was 
endangered ; 

2. Reqiic.iis the Disarmament Commission to seek 
an acceptable solution of the disarmament problem, 
taking into account the various proposals referred 
to in the preamble of the present resolution and any 
other proposals within the Commission's terms of 
reference ; 

:',. Suggcst.s that the Disarmament Commission re- 
convene the Sub-Committee established in accord- 
ance with paragraphs 6 and 7 of General Assembly 
resolution 715 (VIII); 

4. Requests the Disarmament Commission to report 
to the Security Council and to the General Assembly 
as soon as sufficient progress has been made. 



' Approved unanimously by Committee I on ( )ct. 2' 



should we go? Wltat course of action should we 
follow in this committee ? 

On each of these fundamental problems there 
are divergent views. It would be theoretically pos- 
sible for the Assembly to recommend that the So- 
viet Union should accept our view. We frankly 
doubt whether the General Assembly's approval 
of the Anglo-French memorandum or of the 
United States working paper on a control organ 
would advance by one day the achievement of an 
agreed disarmament program unless the General 
Assembly decision had the support of the Soviet 
Union. Yesterday the representative of Syria 
[Ahmad Shukairy] made this point most effec- 
tively. 

We have had some success, even though it is 
much less than we had originally hoped on Sep- 
tember 30, in narrowing the differences that sepa- 
rate us. It seems to us that there is no alternative 
course but to try again. The subcommittee of the 
Disarmament Commission seems to be the ma- 
chinery best suited to promote genuine negotia- 
tion. It would be naive to suppose that progress 
in the Disarmament Commission and its subcom- 
mittee will be rapid. Certain Soviet moves here 
in the ITnited Nations are not calculated to reduce 
international tensions. None of us can wave a 
magic wand which will produce immediate agree- 
ment. We are not counseling delay, nor do we wel- 
come it; we are merely pointing out that progress 
comes as a result of serious thought and thorough 
preparation, all of which is time-consuming. We 
may have to grope along another series of blind 
alleys before we find another one which leads closer 
to agreement. But we know of no other course. 

In the meantime, the United States believes that 
the Canadian resolution, which we are cosponsor- 
ing," affords the best hope of progress in the field 
of disarmament. The machinery provided in this 
resolution can move as fast as the Soviet Union 
will jiermit it to move. We are certainly anxious 
that it should move with the greatest possible 
speed consistent with the attainment of genuine 
agreement. 

I should now like to address a brief remark to 
my good friend. Sir Percy Spender. 1 attach the 
greatest significance to his suggestions with respect 
to the further progress of our discussion of dis- 
armament at this session. Nevertheless, I am sure 



664 



U. N. doc. A/C.l/752/Rev. 1. 

Department of State Bulletin 



that he will agree that our debate to this point has 
very closely outlined the points of agreement and 
disagreement between the views of the Soviet 
Union and those of the other members of the Lon- 
don subcommittee. I doubt if any further clari- 
fication can be obtained at this session. The type 
of problem which Jlr. Vyshinsky desires to be 
solved by the convention will not be solved in 3 
weeks or G weeks. 

I fully agree with Sir Percy's view as to the 
vital contribution which can be made by what he 
has termed the "middle" and "small" powers. We 
have had ample evidence of this already, and I cer- 
tainly hope that we shall have more before our 
])resent debate is over. The Ignited States cer- 
tainly does not believe that progress in this field 
can be made only by the so-called Great Powers. 

That is one reason why we support the Canadian 
resolution, which calls upon the Disarmament 
Commission to pursue its work. That Commission, 
with its 12 members, certainly enables other pow- 
ers to voice their views on a plane of complete 
equality with the Great Powers. Then, too, the 
results of its work will again be reviewed by the 
(General Assembly. In brief, I hope that, when 
we shall have concluded our general debate in this 
committee, all members of this body will have had 
ample opportunity to contribute fulh' to this vital 
task. 

The distinguished representative of Syria spent 
a considerable part of his challenging and able 
presentation yesterday in pointing out the seem- 
ingly irreconcilable attitudes of the U.S. and the 
U.S.S.R., in spite of the fact that we both appar- 
rently espouse the same general principles. I join 
with him in wondering whether "peace" means 
something in Russian that is wholly incompatible 
with what it means in English. 

We are ready to demonstrate that the peace we 
want is worth re^al sacrifice; that it is a precious 
thing deserving of persistent and impartial pro- 
tection; that it will flourish luider proper safe- 
guards in the broad light of day. We reaffirm our 
conviction that peace, as we mean it, cannot thrive 
on an exclusive diet of lip service; that it will 
suffer seriously from the drought of neglect ; that 
it will wither and die in the dark dungeons of 
secrecy. 

Yesterday Mr. Vyshinsky stated that he would 
nuich rather be offered advice than be asked ques- 
tions. I directed no questions to him. However, 



iiiiich as I hesitate to offer advice, he asked for it. 
1 suggest that his Govermnent accept the same in- 
ternational controls that the rest of us are willing 
to accept. 

U.S. delegation press release 1090 dated October 22 

The procedural agreement just announced by 
the distinguished representative of Canada 
[David M. JohnsonJ, an agreement which now 
provides for the cosponsorship by all five membei-s 
of the Disarmament Commission's subcommittee 
of the resolution originally tabled by Canada, verj' 
])roperly refere this question to that subcommittee. 
We join with our other cosponsoi-s in welcoming 
this agreement, and we pledge the continued 
efforts of the United States to achieve fully safe- 
guarded disarmament. 

The subconunittee, Mr. Chairman, will be able 
to probe into the many technical aspects of dis- 
armament. These technical aspects have been 
brought forth during our debate on this subject 
and have shown the divergencies which exist. But 
the deliberations of the subconunittee will test 
the extent to which good faith animates the Soviet 
Union in its present approach to disai-mament 
matters. We await that test with interest. 

The work we will undertake will call for con- 
structive, unremitting effort from every subcom- 
mittee member and the United States will do its 
part. 

Now, Mr. Chairman, in conunon with my col- 
league from Canada I wish to connnent very 
briefly on the question posed to the former co- 
sponsors by the distinguished delegate of India 
[V. K. Krishna Menon] the other day and of 
which we were reminded today by the distin- 
guished delegate of India. Since this seems to be 
a day somewhat devoted to unanimity, I am very 
happy to tell him that the United States, having 
studied the questions and the answers of the dis- 
tinguished representative of the United Kingdom, 
Mr. Lloyd, the United States finds itself in full 
accord with Air. Lloyd's answers. There may be 
some aspects of clarification or even elaboration 
which the United States might wish to add to Mr. 
Lloyd's answers. However, these are of a highly 
technical nature and I do not propose to burden 
the conuniltce with them today. If the distin- 
guished delegate of India would be desirous of our 
doing so, we will be very happy to submit them 
to him in writing, but they will not in any sense 
affect the substance of the answers. 



November I, 1954 



665 



Progress in Highway Development for Latin America 



SIXTH PAN AMERICAN HIGHWAY CONGRESS, CARACAS, JULY U-23, 1954 



Important impetus is expected to be given to 
the development of highways throughout Latin 
America as a result of the resolutions and recom- 
mendations of the Sixth Pan American Highway 
Congress, held at Caracas, Venezuela, from July 
11 to July 23, 1954. It was a fully representa- 
tive meeting, with 19 of the 21 American Republics 
sending official delegations. Outstanding among 
its accomplishments were the unanimous adoption 
of a permanent plan for the organization of future 
Congresses, with emphasis upon executive and 
technical committee work, and the institution of 
intensive studies for the financing and construc- 
tion of the Pan American Highway System. 
Along with these were many other decisions which 
reflected the determination of governmental and 
private bodies to make headway rapidly and con- 
structively on the problems of highway improve- 
ment and expansion. 

The Caracas meeting, latest of a series which 
began at Buenos Aires in 1925, was pronounced 
by many participants as the most effective to date. 
It carried out successfully the formative planning 
begun at the Fifth Congress at Lima in 1951 and 
a special Congress at Mexico City in 1952,^ and 
marked the coming to full maturity of this impor- 
tant hemispheric organization. In all of these 
activities, the United States has played a lead- 
ing part. 

The Seventh Congress will be held at Panama 
City, R P., in 1957. 

United States Delegation 

The members of the U.S. delegation were as 
follows : 

AValter Williams, Under Secretary of Commerce, Chair- 
man 



Charles P. Nolan, Bureau of Inter-American Affairs, De- 
partment of State, Vice Chairman 

J. Harry McGregor, Chairman, Subcommittee on Roads, 
House of Representatives 

George H. Fallon, Member, Committee on Public Works, 
House of Representatives 

Herbert Ashton, Bureau of Foreign Commerce, Depart- 
ment of Commerce 

Sewell Marcus Gross, American Road Builders Associa- 
tion 

Edwin W. James, American Society of Civil Engineers ' 

Henry H. Kelly, Office of Transport and Communications 

Policy, Department of State 
Gale Moss, American Association of State Highway 

Oificials 
Francis C. Turner, Bureau of Public Roads, Department 

of Commerce 
Norman B. Wood, Bureau of Public Roads, Department 

of Commerce 
William L. Brewster, second secretary of the 
American Embassy at Caracas, acted as liaison 
officer. 



Organization of the Congress 

All working sessions were held in the library 
building of the University City, a large enclave 
of structures which eventually will house many 
thousands of students. The physical facilities of 
the building were excellent, with auditoriimis and 



' For an article on the special Congress, see Bulletin 
of Jan. 19, 1953, p. 105. 



■ Special mention should properly be made of the par- 
ticipation of Mr. James, who has attended all of the Pan 
American Congresses except the first two as a U.S. delega- 
tion member. Mr. James was in charge of the coopera- 
tive work of the U.S. Bureau of Public Roads on the 
Inter-American Highway from 1929 until his retirement 
in 1953. During that period he made more than 60 in- 
spection trips to various parts of the highway, in addition 
to engineering surveys in Venezuela, Colombia, Ecuador, 
Peru, Bolivia, Chile, Brazil, Cuba, Haiti, the Dominican 
Republic, Puerto Rico, and the Virgin Islands. To in- 
numerable government oflScials, engineers, and economists 
throughout the Americas, he is known as "the father of the 
luter-American Highway." 



666 



Deparimeni of State Bulletin 



assembly rooms of ample dimensions and attrac- 
tive arcliitectural style. 

On the morning of July 11, the chiefs of dele- 
gations met in a preliminary session with the 
Organizing Committee and principal officere of 
the secretariat and designated the Minister of 
Public Works of Venezuela, Dr. Julio Bacalao 
Lara, as president and Dr. Eduardo Arnal, Dean 
of the Faculty of Engineering, Central University 
of Venezuela, as secretary general of the Con- 
gress. Dr. Francisco J. Hernandez of the Pan 
American Union was pernument secretary, as at 
previous Congresses. 

At the formal opening session the same after- 
noon, held in the Great Hall of Univei-sity City, 
these designations were confirmed. In addition, 
the Presidents of the American Republics were 
made honorary presidents and the Ministers of 
Public Works honorary vice presidents. Five 
technical commissions were established, to cover 
the following subjects : international affairs, high- 
way education, construction and maintenance, 
legislation and administration, and highway 
safety. A committee on coordination and style 
was also appointed. 

Technical Papers and Reports 

As is customai-j' in a technical conference, large 
numbers of papers had been submitted by organ- 
izations or individuals for consideration. The 
Final Act of the Congress listed 159 such papers. 
Of these, 51 were the subject of resolutions; 59 
were recommended to be published in full in the 
proceedings (including the following from the 
United States: "Economic Potentialities of the 
Pan American Highway," by Edwin W. James; 
"Soil Testing," by M. D. ISIorris; and "Repair 
Shops for the Care of Highway Equipment" and 
"Highway Planning in the United States," by the 
Bureau of Public Roads) ; and 49 were recom- 
mended to be summarized in the proceedings (in- 
cluding a paper by J. Stanley Williamson on 
"Highway Maintenance in Ecuador"). 

The most important reports presented were 
those of four special committees appointed bj' the 
Mexico City Congress in 1952 to prepare for the 
Caracas meeting. A so-called Interim Commit- 
tee, which was in effect an executive committee, 
with its chairman representing Mexico and with 
officials from Argentina, Brazil, Peru, and the 
United States as its members, recommended a plan 



of organization for the future Congresses and 
offered suggestions on the technical committee re- 
ports. The latter were submitted by committees 
on financing, chaired by Mexico; on planning and 
routing, cliaired by Brazil ; and on the organiza- 
tion of highway departments, chaired by Peru. 

Work of the Commissions 

Much of the work of the Congress was per- 
formed in the technical commissions, although this 
did not prevent many hours of discussion in the 
plenary sessions as well. Members of the U.S. 
delegation took an active part. 

In Commission I, on international affairs, the 
principal topic was the permanent organization 
of the Congresses. After a brief discussion of a 
revised plan informally submitted by the perma- 
nent secretariat, the original "Plan of Organiza- 
tion of the Pan American Highway Congi-esses" 
as drawn up by a five-nation committee earlier 
this year was unanimously approved with only 
minor editorial changes. Other matters handled 
by this commission included the regional and 
worldwide treaties on international road traffic of 
194.3 and 1949, plans for financing the construc- 
tion and improvement of the Pan American High- 
way System, and coordination of transport. 

In Commission II, on highway education, 
papers were presented on three principal sub- 
jects — descriptions of national highway systems, 
histories of national highway development, and 
the preservation of archeological and historical 
monuments. 

Commission III, dealing with plans, con- 
struction, and maintenance, was divided into six 
subcommissions : preliminary studies, earth move- 
ment, pavements, bridges, drainage, and mainte- 
nance. The principal work of the subcommis- 
sions was to consider and recommend disposition 
of some 25 technical papers submitted to the Con- 
gress. 

Commission IV dealt with highway legislation, 
administration, economics, and finance. Repre- 
sentative McGregor served as vice chairman of 
this commission, of which the principal work was 
the consideration and discussion of the recom- 
mendations of the Technical Committee on High- 
way Administration (Lima Committee). Of spe- 
cial interest to the United States, and particularly 
to the Bureau of Public Roads, was a resolution 
which recommends that the several countries 



November 1, 1954 



667 



establish priority of construction on the Pan 
American Higliway as follows: first — opening 
and constructing impassable sections to all-weather 
standard; second — improving substandard sec- 
tions to all-weather standard and constructing 
permanent structures; third-paving. This resolu- 
tion coincides with the policy of the Bureau of 
Public Roads to establish just such priority of 
construction on the Inter-American Highway 
progi'am throughout Central America and 
Panama. 

Commission V, on highway operation and 
safety, cx)nsidered a number of papers on highway 
traffic standards, signs, and nomenclature. 
Among other actions it requested the executive 
committee to undertake studies which would fix 
tliQ, basis for greater uniformity in the designation 
and identification of highway routes throughout 
the various American countries. 

Resolutions 

In four jjlenary sessions, spaced at intervals 
during the Congress and ending on July 20, de- 
finitive action was taken on the many proposals 
considered by the Congress. The Final Act was 
signed at a brief closing ceremony on the morning 
of July 23. 

The total number of resolutions adopted was 53. 
Notable among them were the following : 

Resolution I : Recommendation of a permanent 
"Plan of Organization of the Pan American High- 
way Congresses," which sets forth among other 
matters the objectives of the organization — chief 
of whicli is to facilitate and promote the develop- 
ment of highways in the American continent ; es- 
tablishes relations with the Organization of 
American States; provides that the Congresses 
will be held every 3 years, with five classes of par- 
ticipants — official delegates appointed by Gov- 
ernments of the American States, certain commit- 
tee members, the representative of the Organiza- 
tion of American States, special observers repre- 
senting international organizations, and other ob- 
servers ; creates a permanent Executive Committee 
and four technical committees of experts to cover 
the fields of goveramental highway departments, 
planning and routing of highways, financing, and 
terminology; and calls for a permanent secre- 
tariat, to be provided by the Pan American Union. 

In a separate action, tlie Congress designated 
the following countries to hold the chairmanships 



of these committees: executive, Mexico; highway 
departments, Peru ; plamiing and routing, Brazil ; 
financing, Venezuela; terminology, Argentina. 
The United States will have membership on all 
except the committee on plamiing and routing. 
The Executive Committee will be the chief moti- 
vating force for the next Congress, since respon- 
sibility for carrying out the recommendations of 
the Caracas meeting will largely devolve upon it. 
Its members are Mexico (chairman), Argentina, 
Brazil, United States, Panama, Peru, and Vene- 
zuela. Its first meeting will be held at Mexico 
City, January 13-17, 1955. 

An interesting feature of this new organization 
plan, which won unanimous approval at Caracas, 
is that it involves no financial commitments for 
the member countries other than the expenses of 
the host countries for the periodic Congresses or 
for committee meetings. Operation of the plan 
will be watched with gi'eat interest, for if it proves 
successful, its simplicity, economy and concentra- 
tion upon effective committee work may well com- 
mend it as a prototype for similar international 
technical organizations. Tlie Caracas resolution 
was framed in the form of a reconunendation to 
the Council of the Organization of American 
States, but its approval by that body and its con- 
sequent entry into force for all future Congresses 
are expected. 

Resolution II: Organization of a technical 
study, with the authorization and collaboration 
of Panama and Colombia, of a practicable route 
for the Pan American Highway through the Isth- 
mus of Darien. All of the American countries in- 
terested in this project are invited to lend their 
assistance, and tlie permanent Executive Com- 
mittee is placed in general charge. The Darien 
Peninsula, still largely unexplored, presents one 
of the most difficult gaps in the Pan American 
Highway, with about 170 miles of undeveloped 
and unknown territory between the present liigh- 
way connections in Panama and Colombia. The 
Caracas resolution marks the start of a vigorous 
attack upon this problem. The United States is 
expected to offer technical assistance, particularly 
as regards aerial surveys, with no commitment as 
to financial assistance. 

Resolution III : Preparation of a plan, by the 
Financing Committee and the Executive Com- 
mittee, for the financing of the entire Pan Ameri- 



668 



Department of State Bulletin 



can Hi{j;lnv!iy SysUnii "on the basis of continental 
cooperation, both govornnieutal and private." 

Resolution IV: Preparation of a formula, by 
the Executive Committee in cooperation with the 
International Bank for Reconstruction and De- 
velopment, to assist individual countries to obtain 
funds for highway development. 

Resoluiion V : An expi-ession of thanks t-o the 
U.S. Government for its help in the construction 
of the Inter-American Highway (Guatemala to 
Panama) . 

Resolution X: Suggestion that the American 
countries adopt uniform symbols for highway 
maps and that the United Nations be urged to 
continue its efforts to establish worldwide uni- 
formity in road signs and signals. 

Resolution XIII : Recommendation that the 
Executive Committee study the possible uniform- 
ity of highway specifications and design standards 
which would conform to the limitations on vehicle 
dimensions and weights as set forth in inter- 
national conventions. (The U.S. delegation un- 
derstands this to have particular reference to the 
vehicle size and weight limitations embodied in 
annex 7 to the Convention on Road Traffic of 
1949.») 

Resolution XVI: Interchange of information 
among the countries of the Gulf of Mexico and 
Caribbean Sea area and convening of a confer- 
ence by the Executive Committee to establish a 
"tourist circuit" embracing the southern United 
States, Cuba, Yucatan, and central Mexico. 

Resolution XVIII: Compliments to the United 
Nations Economic Conxmission for Latin America 
for its study on transportation in Central Amer- 
ica, with a recommendation that it produce a 
similar study for South America. 

Resolution XIX: Recommendation that gov- 
ernment agencies, automobile associations, and 
organizations of commerce, industry, and produc- 
tion support the formation of bodies representa- 
tive of commercial highway transport in all its 
phases. 

Resolution XX: Recommendation that all the 
American States should adhere to the worldwide 



' For a summary of the 1949 convention see Bulletin 
of Dec. 12, 1949, p. 886. 



ConviMition on Road Traffic (Geneva, 1949), es- 
tablish promptly the distinctive sign indicating 
national origin of motor vehicles in international 
traffic as provided by that treaty, and study the 
United Nations proposals for qualifications of 
drivers in international traffic with a view to their 
adoption as a basis for uniform issuance of driv- 
ers' permits; and that any country which has not 
yet done so should also ratify the regional Con- 
vention on Regulation of Inter-American Auto- 
motive Traffic (Washington, 1943) in order to 
meet the special documentary reijuirements of 
countries in this hemisphere pending ratification 
of the world convention. 

Resolution XXIV: Recommendation tliat a 
Department of Traffic, Highways, or Roads be 
created in each country where it does not already 
exist and that information on such departments be 
sent to tlie permanent secretariat. 

Resolution XXVI : Suggestion that adequate 
rights-of-way be obtained for highways, 60-met«r 
minimum width for principal routes and 30-meter 
for secondary, with 100 meters, if possible, for all 
roads on the Pan American Highway. 

Resolution XXVII: Recommendation that 
each country establish a National Commission on 
Connnunications to prepare a general plan for the 
national and regional development of highways, 
x'ailways, inland and ocean waterways, and air- 
ways, with a view to coordinated economic and 
social betterment ; that such a plan determine the 
steps necessary to be taken for both immediate and 
future development of the country; and that on 
completion of the work of the Commission, a 
National Council of Communications be estab- 
lished as a consultative body to study traffic 
changes in the various modes of transport and 
other unforeseen developments which may affect 
the coordinated program. 

Resolution XXIX: Suggestion that the 
American States adopt the contract method for 
construction of highways. 

Resolution XXX: Suggestion that the govern- 
ments give preferential attention to the mainte- 
nance of highways. 

Resolution XXXIII: Suggestion that the 
governments promote the construction of local 
roads in order to augment areas under cultivation, 



November 1, 7954 



669 



attract new industries, increase traffic on the prin- 
cipal routes, and develop the national economy 
and culture. 

Resolution XXXIX: Eecommendation to the 
Inter- American Economic and Social Council to 
convene a meeting of traffic experts before the next 
Pan American Highway Congress is held. 

Resolution XLII: Kesolution to hold the 
Seventh Pan American Highway Congress in 
Panama City, K. P., in 1957. 

Resolution XLIV-A: Recommendation that 
schools for operators of construction and transpor- 
tation equipment be established and that aerial 
photographs be used as part of the means for 
determining highway locations. 



U.S. Announcement 

One of the chief events of the Congress required 
no specific resolution. It was an announcement 
by the chairman of the U.S. delegation in the 
plenary session of July 16 to the following effect : 

I am sure that most of you already know that in May 
of this year the United States Congress made an effective 
contribution toward completion of the inter-American 
portion of the I'an American Highway between Mexico 
and the Panama Canal by authorizing the future appro- 
priation of funds required to complete the Inter-American 
Highway by 1960 in cooperation with the Central Ameri- 
can countries and Panama. You will be interested to 
learn that this legislation was introduced and skillfully 
guided to final approval in the Congress by the Honorable 
J. Harry McGregor, Congressman from the State of Ohio, 
aided by the Honorable George H. Fallon, Congressman 
from the State of Maryland, both of whom are present, 
with us here in Caracas as members of the United States 
delegation to this Congress. 

As all of us are aware, one of our objectives here is to 
develop a means to hasten opening of the 25-mile gap in 
the highway in northern Guatemala. I am glad to be able 
to announce to the delegates to this Sixth Pan American 
Highway Congress that I have just received information 
that hearings have already been completed and that the 
Congress of the United States has before it now the bill 
for the actual appropriation of sufficient funds to permit 
the United States Government to enter into a cooperative 
agreement with the new Government of Guatemala to 
commence work on this section of the highway. Should 
the United States Congress act favorably on this appro- 
priation, funds would then be available with which the 
United States and Guatemala could negotiate an agree- 
ment for the immediate beginning of construction on this 
important section of the highway. 

The statement was greeted by applause. To 



many of those present, it meant that the last politi- 
cal obstacle to completion of the Inter-American 
Highway was about to be removed and that a 
through overland connection between the United 
States and the Panama Canal could become a 
reality, if the United States Congress so desired, 
within a period of perhaps 5 years. 

*This report was drafted for the UjS. delega- 
tion hy H. H. Kelly, ojjicer in charge of inland 
transport matters for the OiJice of Transport and 
Cormnunications Policy. 



TREATY INFORMATION 



Current Actions 



MULTILATERAL 

Agriculture 

International plant protection convention. Done at Home 
December 6, 19.51. Entered into force April 3, 1952.' 
Notification hy Australia of extension to: Territories 
of Papua and New Guinea, Nauru and Norfolk Island, 
August 9, 1954. 

Commodities — Sugar 

International .sugar agreement. Done at Loudon under 
date of October 1, 1953. 
Ratification deposited: Lebanon, September 23, 1954. 

Shipping 

Convention on the Intergovernmental Maritime Consul- 
tative Organization. Signed at Geneva March 6, 1948.' 
Acceptance deposited (icith reservation) : Mexico, Sep- 
tember 21, 1954. 

Slave Trade 

Protocol amending the slavery convention signed at 
Geneva on September 25, 1926 (46 Stat. 2183), and 
annex. Done at New York December 7, 1953.' 
Acceptance deposited: Egypt, September 29, 1954. 



BILATERAL 
Greece 

Treaty of friendship, commerce and navigation. Signed 

at Athens August 3, 1951. Entered into force October 

13, 1954. 

Proclaimed ii/ the President: October 18, 19154. 
Treaty of establishment. Signed at Athens November 21, 

1936. Entered into force October 22, 1937. 51 Stat. 230. 

Terminated : October 13, 1954 (upon entry into force 

of the treaty of friendship, commerce and navigation 

of August 3, 1951). 



' Not in force for the United States. 
' Not in force. 



670 



Deparimeni of State Bulletin 



November 1, 1954 Index 



Vol. XXXI, No. 801 



Affriculture 

Tiniwrt Fees Imposed on Almonds and Filberts (text of 

proi'laiimtlon) <150 

LImitntluns on Imports of Oats Into United States (text 

of proi'Iamatlon) 657 

American Kcpublica. Progress In Highway Development for 

Latin Anierlcft (KoUy) 666 

Asia 

The Colombo Plan (Waugh) 040 

Econoinio IVvelopment and Political Evolution In Asia 

(Haldwln) 6-«6 

Economic Affairs 

The Colombo Plan (Waugh) 640 

Economic Development and Political Evolution In Asia 

(Baldwin) 646 

Four Engineers Go to Thailand To Plan Highway Project . 658 

The Need for a More I-lberal Foreign Trade Policy (Ald- 

rlch) 64!) 

Progress In Highway Development for Latin America 

(Kelly) 606 

Reorganization of German Coal and Iron and Steel Indus- 
tries 654 

World Bank Loan to El Salvador for Coastal Highway . . 055 

El Salvador. World Bank Loan to El Salvador for Coastal 

Highway 655 

Europe. Paris Conference on European Security (text of 

communique and Dulles statement) 638 

Foreign Service. Rededlcation of Memorial to Foreign 

Service Officers (Murphy, Dulles, Eisenhower) . . . 037 

Germany. Reorganization of German Coal and Iron and 

Steel Industries 654 

Immigration and Naturalization 

Admission of Polish Seamen to U. S 653 

Petty Offenses Under Immigration Laws 653 

International Organizations and Meetings 

Calendar of Meetings 659 

Progress In Highway Development for Latin America 

(Kelly) 666 

Japan. Transfer of Destroyers to Japan (Drumright) . 644 

Military Affairs. Disarmament Talks in U. N. Political 

Committee (Wadsworth, text of resolution) .... 660 

Mntaal Security 

The Need for a More Liberal Foreign Trade Policy (Aid- 
rich) 649 

Paris Conference on European Security (text of com- 
munique and Dulles statement) 638 

Strengthening Pakistan's Economy and Defense Capabil- 
ities (text of Joint communique) 639 

Transfer of Destroyers to Japan (Drumright) .... 644 

Netherlands, The. Case of Joseph F. Petersen .... 654 

Pakistan. Strengthening Pakistan's Economy and Defense 

Capabilities (text of joint communique I 639 

Poland. Admission of Polish Seamen to U. S 653 

Presidential Documents 

Fifth Annual Honor Awards Ceremony 636 

Import Fees Imposed on Almonds and Filberts .... 656 

Limitations on Imports of Oats Into United States . . 657 
Redi'dlcatinn of Memorial to Foreign Service Officers 

(Murphy, Dulles, Eisenhower) 637 

South Africa, Union of. Letter of Credence (Holloway) . 645 



Stale. Dcparlmrnt of. Fifth Annual Honor Awards Cere- 
mony (Dulles, Elsenhower) 635 

Thailand. Four Engineers Go to Thailand To Plan High- 
way Project 658 

Treaty Information. Current Actions 670 

United Nations. Disarmament Talks In U. N. Political 



Committee (Wadsworth, text of resolution) 
Xame Index 



660 



Aldrlch. Wlnthrop W 649 

All, Mohammed 639 

Baldwin. Cliarles F 646 

Drumright. Everett F 644 

Dulles. Secretary 635, 637, 638 

Elsenhower, President 636, 638. 656, 657 

Holloway. John Edward 645 

Iguchi, Sndao 644 

Kelly, H. H 666 

Kirkpatrlck. Ivone 654 

Lewis, Geoffrey W 654 

Murphy, Robert D 637 

Petersen, Joseph S 654 

Wadswortii. James J 660 

Waugh, Samuel C 640 



Check List of Department of State 
Press Releases: October 18-24 

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

Press releases issued prior to October 18 which 
appear in this issue of the Bulletin are Xos. 56S 
of October 11, 575 of October 13, 570 and 577 of 
October 14. 

Subject 

Agreement with Belgium. 

Union of South Africa credentials 
(rewrite). 

Drumright : transfer of destroyers. 

Visit of Adenauer. 

Honor awards ceremony. 

Statement to Unesco Commission 

Drew : swearing-in ceremony. 

Educational excliauge. 

Hare : designation as Director Gen- 
eral of Foreign Service. 

U.S. delegation to NAC meeting. 

Dulles : awards ceremony. 

Dulles : departure for Paris. 

New regulation on immigration. 

Dulles : Suez Base agreement. 

Petersen case. 

Wainhouse : U.N. Charter review. 

Treaty with Greece. 

Arrival of Hong Kong refugee. 

U.S.-Pakistan communique. 

Copyright arrangement with India. 

Foreign Relations volume. 

Brown : Germany's role in free world. 

Dulles : United Nations Day. 

Admission of Polish seamen. 

•Xot printed. 

jHeld for a later issue of the Bulletin. 



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Vol. XXXI, No. 802 
November 8, 1954 




PEACE IN FREEDOIM • Address by tKefrestSen^^ . . 675 

SECRETARY DULLES REPORTS TO PRESIDENT IN 

FIRST OPEN CABINET MEETING 677 

VISIT OF CHANCELLOR ADENAUER 680 

THE UNITED NATIONS AND WORLD SECURITY • 

by Assistant Secretary Key 701 

A PREVIEW OF THE U.S. POSITION AT THE RIO 

CONFERENCE • by Assistant Secretary Holland . . . 684 

THE COMMUNIST CONSPIRACY IN GUATEMALA • 

Statement by Ambassador John E. Peurifoy 690 

SOVIET PROPAGANDA AND INTERNATIONAL TEN- 
SION • by Ambassador John Moors Cabot 697 

INTENSIFYING INTERNATIONAL EFFORTS TO AID 

REFUGEES • Statements by A. M. Ade Johnson ... 703 



For index see inside back cover 



Boston Public Lil-rary 
Euperintendont of Documents 

NOV 2 4 1954 




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Vol. XXXI, No. 802 • Publication 5652 
November 8, 1954 



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The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
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the Government with information on 
developments in the field of foreign 
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special articles on various pluises of 
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Peace in Freedom 



Address by the President ' 



AVe have come together in niemoiy of an inspir- 
ing moment in history — that moment, 300 years 
ago, when a small band of Jewish people arrived 
on the ship Saint Charles in what was then the 
Dutch colony of New Amsterdam. It was an 
event meaningful not only to the Jews of America 
but to all Americans — of all faiths, of all national 
origins. 

On that day there came to these shores 23 people 
whose distant ancestors had, through the Old 
Testament, given new dimensions of meaning to 
the concepts of freedom and justice, mercy and 
righteousness, kindness and understanding — ideas 
and ideals which were to flower on this continent. 
They were of a people who had done much to give 
to Western civilization the principle of human 
dignity; they came to a land which would flour- 
ish — beyond all I7th century dreams — because it 
fostered that dignity among its citizens. 

Of all religious concepts, this belief in the infi- 
nite worth of the individual is beyond doubt 
among the most important. On this faith our 
forefathers constructed the framework of our 
Republic. 

In this faith in human dignity is the major dif- 
ference between our own concept of life antl that 
of enemies of freedom. Tlie chief of these enemies 
a decade and more ago were Nazi and Fascist 
forces, which destroyed so many of our fellow men. 
Today the Communist conspiracy is the principal 
influence that derides the truth of human worth 
and, with atheistic ruthlessness, seeks to destroy 
the free institutions established on the foundation 
of that truth. 

Asher Levy and his party came to this land on 
that long-ago day because even then they had to 



' Made at the American Jewish Tercentenary Dinner at 
New York, X. T., on Oct. 20 (White House press release). 



find a country where they could safely put into 
practice their belief in the dignity of man. 

In this respect, as in so many others, they were 
no dill'erent from scores of other groups that 
landed on our shores. Only 34 years earlier, an- 
other party had landed at Plymouth Rock. That 
group, too, came here in the hope of escaping 
persecution, of gaining religious freedom, of 
settling quietly in the wilderness to build their 
homes and rear their families. 

And there was another noble concept of our 
common Judeo-Christian civilization shared by 
these two groups and by all others who have come 
to this land : the ideal of peace. 

I recall that wonderful prophecy of Isaiah: 
"And the work of righteousness shall be peace; 
and the effect of righteousness, quietness and as- 
surance forever." 

The pursuit of peace is at once our religious 
obligation and our national policy. Peace in free- 
dom, where all men dwell in security, is the ideal 
toward which our foreign policy is directed. 

I know that I am speaking to people who deeply 
love peace. I know that, with all other Americans, 
you share a profound thanksgiving that, for the 
first time in 20 years, there is no active battlefield 
anywhere in the world. 

Moreover, while fighting has been brought to 
a halt during the past 21 months, still other de- 
velopments favorable to the maintenance of peace 
have been brought about through understanding 
and through persistent and patient work, in which 
your Government has been a helpful participant. 
Some of these developments have commanded our 
headlines— Korea, Indochina, Egypt, Trieste, 
Iran, Guatemala. 

Our people and their Government are dedicated 
to making this a just and lasting peace. 

In the years immediately ahead, the advance- 



November 8, 1954 



675 



ment of peace -svill demand much of us — our 
strength, our patience, our -wisdom, our will. It 
will demand, above all, a realistic comprehension 
of the world and of its challenging problems. 
Some of the factors in these problems are new, 
some old. 

The principal and continuing factor is the per- 
sistently aggressive design of Moscow and Pei- 
ping, which shows no evidence of genuine change 
despite their professed desire to relax tensions and 
to preserve peace. Continuing, also, is the breadth 
and scope of the Comnnmist attack; no weapon is 
absent from their arsenal, whether intended for 
destruction of cities and people or for the destruc- 
tion of truth, integrity, loyalty. 



Development of New Weapons 

The major new factor in the world today, beside 
the absence of tighting, is the rapid development 
in military weapons — weapons that in total war 
would threaten catastrophe. This single product 
of science should be sufficient to stimulate the genu- 
ine efforts of all, including the Kremlin, to give 
to the world a true and permanent peace. 

For our part, we shall explore every avenue 
toward that goal. With any and all who demon- 
strate honesty of purpose, we are happy to confer. 
But well we realize that, in the circumstances of 
the moment, America must remain strong, and the 
community of free nations must likewise remain 
strong, to discourage the use of force in the world. 
In this effort, we must help to harmonize the di- 
vergent views of the many free, self-governing 
nations, and without encroaching upon rights 
which all people cherish. For in the diversities 
of freedom are a tremendous might, a might which 
the imposed system of communism can never 
match. 

Our nation, because of its unmatched produc- 
tivity and power, both existing and potential, 
holds a prime responsibility for maintaining 
peace. How, then, shall we meet this responsi- 
bility? With what policies can we best pursue 
our goal of peace ? 

Certain fundamentals are clear. Our nation 
does not covet the territory of any people. We 
have no wish to dominate others. The peace we 
seek is a secure and a just peace, not bought at the 
expense of others, of principle, or of abject sur- 
render of our vital interests. Peace so bought 



would at best be an illusion, and at worst a perma- 
nent loss of all that we hold most dear. 

The following avenues must be trod as we make 
our way toward our peaceful goal. 

First, we must tirelessly seek — through the 
United Nations, through every other available 
means — to establish the conditions for honorable 
peace. 

Second, we must promote the unity and collec- 
tive strength of other free peoples. 

Third, we must maintain enough military 
strength to deter aggression and promote peace. 

In these thoughts, we Americans overwhelm- 
ingly agree. 

To examine briefly the first principal avenue, 
we stand ready to join all others in removing fear 
among nations. We shall resolutely adhere to the 
principles of the United Nations Charter. We 
shall constantly urge the Communist rulers to do 
the same. We shall keep open the existing chan- 
nels for negotiation and shall use them whenever 
there is any jjrospect of positive results. 

At the Berlin and Geneva conferences, our na- 
tion sought serious negotiation on German unity, 
on a treaty for Austria, and on a political settle- 
ment for Korea. Our efforts found no similar re- 
sponse from the Communist side. We will not be 
misled by proposals intended to divide the free 
nations and to delay their efforts to build their 
own defenses. Nevertheless, no matter how dis- 
couraging the prospect, no matter how intractable 
the Communist regimes, we shall press on in search 
for agreement. 

We will welcome an agreement on a workable 
system for limiting armaments and controlling 
atomic energy. INIoreover, if the ai'maments bur- 
den can be lifted, this Government stands ready to 
ask the Congress to redeem the pledge made a year 
ago last April to help support, from the funds 
thus saved, a worldwide development program. 

The second road leading toward our peaceful 
goal concerns our efforts to strengthen and unify 
other free peoples. 

To meet the challenge destiny has laid upon our 
country, we must strive to help free peoples 
achieve their own security and well-being; we 
must encourage regional groupings of these peo- 
ples ; we must ourselves foster and practice policies 
that encourage profitable trade and productivity 
in the free world. 

In these areas, there has been heartening prog- 



676 



Department of State Bulletin 




Secretary Dulles Reports to President in First Open Cabinet Meeting 

On the evening of October 25 President Eisenhower and his Cabinet met at the White House in an open session, 
with nationwide press, radio, and television coverage, to hear Secretary Dulles' report on the outcome of the recent 
negotiations at Paris. Mr. Dulles reviewed the Four Power meeting, where agreements were approved on the 
subject of restoring German sovereignty; the Nine Power meeting, which reached final agreement on the documents 
required to amend the Brussels Treaty, establish the Council for Western European Union, and set up an agency 
for the control of the armed forces; and the meeting of the Council of Ministers of the North Atlantic Treaty 
Organization, where the 14 members unanimously approved the protocol which will invite Germany to become a 
full and equal member of NATO. 

Several of the other Cabinet members asked Mr. Dulles specific questions — on the Saar settlement, 
on the prospects of ratification, on Soviet reaction. To the question about how the Soviet Union feels about the 
Paris agreement, Mr. Dulles replied, in part: "I would say that I feel pretty confident that the Soviet Union 
doesn't like what is going on. . . . There is behind this program a sense of urgency and momentum, so that 
I don't believe the Soviet Union will be able to break it up." 

In conclusion Secretary Dulles said : "What has happened during these last few weeks has demonstrated that 
there is a basis for a good partnership on both sides of the Atlantic Ocean." 

A transcript of the Cabinet meeting, reproduced in pamphlet form, may be obtained from the Public Services 
Division, Department of State, Washington 25, D. C. 



November 8, 1954 



677 



ress. We have broadened our alliances. We have 
helped to remove sources of conflict. We have 
helped to build firmer foundations for social and 
economic progress in our quest for peace. 



Negotiations at Paris 

For some years free world nations have sought 
to associate the Federal Republic of Germany in 
the Atlantic community. Rejection of the Euro- 
pean Defense Treaty by the French Assembly 7 
weeks ago was a setback to that hope. Yet, no 
nation in Western Europe was willing to accept 
tliis setback as final. In the recent meetings at 
London, the free Western nations reasserted their 
basic unity and established a new pattern for 
achieving their common purposes. Secretary of 
State Dulles has just joined our European allies 
in Paris in further important negotiations to 
strengthen European cooperation. 

In Southeast Asia we have sought united action 
to preserve for the free countries of that area the 
independence accorded them at the end of World 
War II. Unfortunately, in recent years no foun- 
dation was laid for effective united action to pre- 
vent Communist gains. Because of their conse- 
quent isolation, the governments that bore the 
burden of the Indochina war understandably 
sought its conclusion in the face of the limitless 
manpower of China. 

But recently at Manila we succeeded in nego- 
tiating a treaty with Asian and European coun- 
tries. This pact symbolizes the desire of these 
nations to act together against aggression and to 
consult together on measures against subversion. 
The Manila Fact, bringing together states of the 
East and tlie AVest, and the related Pacific Charter 
are a long step toward tlie peaceful progress to 
which all Asian peoples aspire, whether or not 
members of the pact. 

In this hemisphere, we have strengthened our 
solid understanding with our American neighbors. 
At the Caracas conference earlier this year, the 
American Republics agreed that if international 
communism were to gain control of the political 
institutions of any one American state, this con- 
trol would endanger them all and therefore would 
demand collective action. Recently sucli a threat 
arose in Guatemala. The American states were 
preparing to act together to meet it when the 
Guatemalans themselves removed the danger. 



The Caracas agreement will stand as a bulwark j 
of freedom in the Western Hemisphere. 

In a number of areas throughout the free world, 
dangers to peace have been eliminated. The prob- 
lem of Trieste, a threat to peace for a decade, has 
now been satisfactorily solved by Italy and Yugo- 
slavia, with friendly assistance from the United 
States and Great Britain. Egypt and Britain ap- 
pear to have reached an amicable adjustment of 
questions centering on Suez. Iran has been helped 
in settling its difficult internal problems and is 
moving toward firm and friendly relations with 
the West. 

In the Near East, we are all regi-etfully aware 
that the major differences between Israel and the 
Arab States remain unresolved. Our goal there, 
as elsewhere, is a just peace. By friendship to- 
ward both, we shall continue to contribute to 
peaceful relations among these peoples. And in 
helping to strengthen the security of the entire 
Near East, we shall make sure that any arms we 
provide are devoted to that purpose, not to creat- 
ing local imbalances which could be used for in- 
timidation of or aggression against any neighbor- 
ing nations. In every such arrangement we make 
with any nation, there is ample assurance that 
this distortion of purpose cannot occur. 

The fact that so many stubborn problems have 
been resolved with patience and forbearance surely 
justifies ovir hope that, by similar efforts, the na- 
tions of the free world will be able to eliminate 
other problems. Such efforts themselves tend to 
bring the free nations closer together. In speak- 
ing recently of the London Conference, Sir 
Winston Churchill said of his country and the 
United States, "True and friendly comprehension 
between our kindred nations has rarely reached a 
higher standard." 

When we tliink of these many encouraging de- 
velopments over the world, and the patient, help- 
ful work that brought them about — when we con- 
template the fact that the seemingly endless war in 
Korea, with its tragic casualty lists, is a thing of 
the past — and when we see improvement in area 
after area, from Suez to Iran, from Trieste to 
Guatemala, from London to Manila — then we in- 
deed take heart. 

In addition, we must devise means by which 
more highly developed countries can assist peoples 
who face the difficulties of an earlier stage of eco- 
nomic development. 



678 



Department of State BuUetin 



As we continue to assist in tliese efforts, we shall 
also contribute much to free world unity by the 
wise use of ovir sireiit economic power. AVo have, 
in the past, provided indispensable assistance to 
our partners. We continue to stand ready to help : 
to repair the ravages of war; to ease economic diffi- 
culties caused by vital efforts to build defensive 
military strength; to relieve disasters from flood 
or famine. 



Sharing the Economic Burden 

Economic relations, however, are not a one-way 
street. If the common goal is to be reached, free 
nations nmst subordinate tlie selfish to the general 
interest. All must bear tlieir fair share of the 
common burden. All must do more to liberalize 
the exchange of goods among free peoples. Let 
us be mindful, first of all, of our own responsibility 
in this field. Bold action could release powerful 
forces of economic enterprise from which the 
whole free world would benefit. 

If there were no other reason for national policy 
being concerned every day and every minute with 
the nation's economy and with full employment, it 
would be justified by the need for this kind of eco- 
nomic strength in meeting world problems. 

We must continue to explore ways in which nu- 
clear discoveries can be turned to the service of 
man's peaceful needs. Since our nation's pro- 
posal for an international effort toward this end 
was laid before the United Nations last December, 
we have taken the initiative in this direction. We 
would welcome the participation of the Soviet 
Union. But this great effort for hiunan welfare 
cannot wait upon their decision. 

Our third major road leads us to maintain 
enough military strength to deter aggression and 
to help keep peace in the world. 

This strength is a trust on which rests the hope 
of free men. 

Neither in size nor in character can our military 
establishment remain static. With constantly 
changing dangers, with rapidly changing develop- 
ments in the science of warfare, our militarj' 
forces, too, must change. From atomic submarine 
to atomic cannon, from new weapon systems to 
new military organizations, this giant, complex 
structure must respond to the current needs of our 
time. Above all, its purpose is to prevent aggres- 



sion and war. Our forces will never be used to 
initiate war against any nation; they will be used 
only for the defense of the free world. 

Together with the armed strength of other free 
nations, our military power — the greatest in our 
peacetime history — is today a deterrent to war. 
This awesome power we must and shall maintain, 
for we are determined that at all times, in today's 
uncertain world, we shall be able to deal effectively 
and flexibly with whatever situations may arise. 

My friends, in these many ways our nation will 
continue tirelessly in its quest for peace based on 
justice. In recent months, we have come far, and 
yet we know that the road ahead is long and diffi- 
cult. But we shall continue to press on toward 
our goal. 

And as we do, we shall keep faith with those of 
earliest America who, as they came to these shores 
three centuries and more ago, launching a venture 
in freedom unparalleled in man's struggle over the 
ages, sought peace and freedom and justice, for 
themselves and for those who were to follow. 

Yes, my friends, we know, with the prophet 
Isaiah, that the work of righteousness shall be 
peace. 

We know that the Lord will give strength unto 
all of us as we strive tirelessly, confidently, for 
peace. 



Visit of Prime Minister Yoshida 

The Department of State announced on October 
28 (press release 614) that Prime Minister Shigeru 
Yoshida, after completing visits to Canada, 
France, West Germany, Italy, the Vatican, and 
the United Kingdom, would arrive at New York 
on November 2 and at Washington on November 7. 

The purpose of his visit is to promote amicable 
relations and to further understanding between 
Japan and the United States. He will meet 
President Eisenhower, Secretary Dulles, and other 
American leaders with whom he hopes to exchange 
views on matters of mutual interest and concern 
to both countries. 

The Prime Minister will stay in Washington 
until November 11, when he will leave for Japan, 
traveling by plane by way of San Francisco and 
Honolulu. 



November 8, 7954 



679 



Visit of Cliaricellor Adenauer 



Chancellor Konrad Adenauer of the Federal 
RepiiMic of Germany arrived at Washington on 
October 27 for discussions with the President and 
Secretary Dulles. During his stay he and the 
Secretary, on October 29, signed a Treaty of 
Friendship, Commerce, and Navigation between 
the United States and the Federal Republic. Fol- 
lowing are the texts of a statement made by Chan- 
cellor Adenauer on his arrival at the Washington 
National Airport, a statement issued by the Presi- 
dent and the Chancellor on October 28, and an 
announcement of the treaty signing, together with 
statements made at the signing by Secretary Dulles 
and the Chancellor. 



AIRPORT STATEMENT BY THE CHANCELLOR 

[Translation] 

Today, for the second time, I set foot on the 
soil of this hospitable, great, and free country. 
Many decisive events have taken place within the 
year and a half since my last visit.^ At that time 
a question was not yet settled which perhaps was 
a matter of life or death for my people and was 
of the utmost importance to the fate of Europe 
and to the preservation of peace in the world. 

The question was whether the North Atlantic 
Alliance, on whose strength and eti'ectiveness the 
freedom of the world is based, could be so imple- 
mented in Europe that it would constitute a genu- 
ine deterrent to any aggressor. This was the 
meaning of the invitation extended to us to join, 
as a new partner, the community of the free peo- 
ple united in this alliance. 

The German people, aware of their common re- 
sponsibilities with the free world, did not hesi- 
tate to accept the invitation. It was uncertain for 



' For material relating; to the Chancellor's visit in April 
1933, see Buixetin of Apr. 20, 1953, p. 5ti5. 



a long time, however, which form of German par- 
ticipation in the defense of the free world would 
find the agreement of all European partners. 

AVe hope that these doubts and this uncertainty 
have now passed. During the conferences of Lon- 
don and Paris, solutions were found to which all 
participating govermnents could agree. We could 
not have overcome the terrible state of uncertainty, 
anxiety, and insecurity with which we lived so 
long had we not had the generous support of the 
American Government and American public opin- 
ion on our road to assmning our own full responsi- 
bilities and to our final acceptance into the com- 
munity of free peoples. 

My satisfaction with what we have just achieved 
is, therefore, mixed with deepest gratitude toward 
the American people and their Govermnent for 
their understanding and their assistance. "We owe 
gratitude to President Eisenhower for liis un- 
failing confidence in us, and we owe gratitude to 
Secretary of State Dulles for his foresight, wis- 
dom, and steadfastness which were so much in evi- 
dence at the conferences where our fate was de- 
cided. 

I am moved to express this feeling at the very 
moment of my arrival in the United States. The 
whole German people are united in the desire to 
live in continual, cordial friendship with the 
American people. 



STATEMENT BY THE PRESIDENT AND THE 
CHANCELLOR 

White House press release dated October 28 

At the end of tlieir meeting today the President 
and the Chancellor issued the following statement: 



During this morning's conversations we took an 
opportunity to renew the spirit of friendship and 



680 



Depattment of Stale Bullelin 



confidence which lias marked our rehitionship in 
the past, especially in our eli'orts to overcome the 
very serious situation which faced us during; the 
past few months. We reviewed the decisions taken 
at Ix>ndon and Paris and we are convinced that 
with the coming into etl'ect of the Agreements 
signed this past weekend, the road towards a strong 
and imited Europe will have been paved. We 
view the understanding reached between the Gov- 
ernments of France and the Federal Republic of 
Grermany as an especially encouraging step to- 
wards lasting peace in Continental Europe. This 
understanding was greatly furthered by the com- 
mitment on the part of the United Kingdom to 
maintain forces on the Continent. The basis for 
a European community has thus been established. 
The continued interest in and support of this 
community by the United States was reiterated. 
Together with the strengthened North Atlantic 
Treaty Oi'ganization, now to include the Federal 
Republic of Germany, these new agreements will, 
we are convinced, serve to reinforce the defense 
system of the free world. 

II 

We particularly addressed ourselves to the ques- 
tion of German reunification. The demand for 
a reunited Germany in freedom is viewed by us 
as the legitimate demand of the German people. 
We are agreed that this aim shall be achieved only 
by peaceful means. We are convinced of the ne- 
cessity of continued efforts towards this goal and 
are agreed that such efforts will be made by the 
United States and the Federal Republic of Ger- 
many together with the Governments of the United 
Kingdom and France. 

In this connection, we exchanged views on the 
latest Soviet note.- It is our initial view that this 
does not seem to offer any new proposal on the 
part of the Soviet Union ; it appears essentially as 
a reiteration of the positions taken by Mr. Molotov 
at the Conference in Berlin regarding Germany 
and European security. 

We have no doubt that the strengthening of 
free Europe which will result from the recent Imu- 
don and Paris Agreements will aid our efforts to 
bring freedom and unity to all of the German 
people. 



Ill 

Wo discussed the unfortunate fact that huge 
numbers of Gernuin prisoners of war and civilian 
deportees are still held in custody in areas behind 
the Iron Curtain, mainly the Soviet Union. The 
Chancellor re(iuested the continued assistance of 
the United States in obtaining the release of these 
prisoners. This question has for some time been 
the subject of investigation by a United Nations 
Conunission. The Chancellor was assured that the 
United States stands ready, now as in the past, to 
offer every support and assistance considered use- 
ful in accomplishing this end. 

IV 

We also discussed the question of German assets 
in the United States. The President expressed 
sympathy for the problem raised by the Chancellor 
in his letter of July 17, 1954, to him on this sub- 
ject^ and again expressed his willingness to ex- 
plore such problems along with the question of 
American war claims. We were agreed that con- 
versations between representatives of our two Gov- 
ernments will soon begin. 



SIGNING OF TREATY OF FRIENDSHIP 
Department Announcement 

Press release 616 dated October 29 

Secretary Dulles and Chancellor Konrad Ade- 
nauer today signed a Ti-eaty of Friendship, Com- 
merce, and Navigation between the United States 
of America and the Federal Republic of Germany. 

The treaty signing is the culmination of a nego- 
tiation that began at Bonn over a year ago and 
was completed in Washington by delegations 
headed respectively by Walther Becker of the Ger- 
man Foreign Office and Thorsten V. Kalijarvi, 
Deputy Assistant Secretary for Economic Affairs. 

The treaty is designed to regulate basic eco- 
nomic relations between the two countries in ac- 
cordance with advanced and enlightened stand- 
ards and to direct the future development of those 
relations along mutually beneficial lines. It re- 
places, in the greater part, that treaty of 1923 be- 
tween the United States and German}' which was 
the forerunner and basic instrument in tJie devel- 



' Delivered to the U.S., British, and French Ambassadors 
at Moscow on Oct. 23. 



' Bulletin of Aug. 23, 1954, p. 270. 



November 8, 1954 



681 



opment of this Government's modem commercial 
treaty progi'am. 

The new treaty contains 29 articles, together 
with a protocol and exchanges of notes, and cov- 
ers in some detail a wide range of subject matter.* 
In brief, each of the two countries (1) agrees to 
accord within its territories to citizens and corpo- 
rations of the other, treatment no less favorable 
than it accords to its own citizens and corporations 
with respect to engaging in commercial, industrial, 
and financial activities; (2) formally endorses 
standards regarding the protection of persons, 
their property and interests that reflect the most 
enlightened legal and constitutional principles; 
(3) recognizes the need for special attention to 
stimulate the international movement of invest- 
ment capital and agrees tliat such movements shall 
not be unnecessarily hampered; and (4) reasserts 
its adlierence to the principles of nondiscrimina- 
toiy treatment of trade and sliipping. 

From tlie standpoint of aiding tlie economic 
interests of Germany, the treaty is the first of this 
type negotiated by that country since the war and 
represents an additional step in its forward-look- 
ing plans to attain a viable and sound economy 
and thereby contribute to the improvement of the 
economic welfare and security of the European 
community. 

The U.S. program for the negotiation of trea- 
ties of friendship, commerce, and navigation is an 
integral jiart of tliis country's policy for the fur- 
therance of liberal principles of trade and eco- 
nomic relations in general, and particularly for 
creating tliroughout the world conditions favor- 
able to economic development. Tliis treaty is the 
eleventh of its type which tlie United States has 
signed since Woi-ld War II and follows the same 
general pattern as the others. Internationally, 
these treaties provide a detailed legal basis for 
the protection of American private interests 
abroad. Domestically, thej- reinforce in terms of 
international obligation tlie position of the Fed- 
eral Govermnent as guardian of the rights of for- 
eigners and foreign enterprises in this country, a 
policy that has developed in conformity witli the 
Constitution and Federal law. Treaties of tliis 
type also confer upon qualified aliens "treaty 
merchant" and "treaty investor" status under the 
immigration laws, i. e. the privilege of indefinite 



*Tlie unofl5eial text (not printed hero) is attached to 
press release 616. 



sojourn in the United States for engaging in trade 
between the two countries or for supervising a 
substantial investment. 

The treaty will be submitted to the Senate for 
advice and consent and, after tlie constitutional 
ratification 2)rocess of both countries has been com- 
pleted, will enter into force one montli after the 
exchange of ratifications. 



Statement by Secretary Dulles 

Press release 617 dated October 29 

Mr. Chancellor: The signing of this treaty 
will mark the final official act of your all-too-short 
visit to "Washington. Its meaning goes far beyond 
the terms whicli it contains. For this treaty will 
stand as the symbol of the completion of the 
process of reestablishing normal relations between 
our two countries. It will place our commercial 
relations once again on a peacetime basis. 

I am particularly mindful of the fact that this 
treaty is not only a treaty of commerce but also a 
treaty of friendship. That relationship has 
marked our recent historic discussions in Bonn, 
London, and Paris and our talks here during the 
past 2 days. Now, this friendship is duly formal- 
ized for the years to come. 

Some observers consider that the Paris agree- 
ments whicli we signed last Saturday had pri- 
marily as their objective a contribution by Ger- 
many to the "Western defense, or, to put it more 
directly, German rearmament. That is not how 
we in the United States regard the matter, and I 
know that it is not how you regard the matter. 
The responsible leaders of both our nations have 
learned the dangers of militarism. Of course, all 
of the free peoples have a duty to contribute to the 
common defense. But our primary concern is to 
develop strong ties of friendsliip and peaceful 
commerce between the nations. It is that great 
and noble end wliich will be served by this treaty 
which we sign here today. 



Statement by Chancellor Adenauer 

[Trauslation] 

Mr. Secretary : On behalf of the Federal Re- 
public of Germany I have signed M'ith particular 
pleasure this Treaty of Friendship, Commerce, 
and Navigation, which was negotiated between our 
two Governments in a positive and constructive 
spirit. 



682 



Department of State Bulletin 



I wliolelicartcdl}' aprep witli what you said in 
evaluating the results of the Paris Coni'orence. 
It is not the question of raisino; some divisions 
which is at the bottom of our political activities, 
but the strengthening of ties of friendship within 
the free world and the further development of the 
welfare of our nations. We regret that we are 
forced to undertake efforts in the military lield in 
order to protect these values. 

I therefore welcome this treaty as a further tirm 
element in the peaceful cooperation of our two 
countries. This treaty is a commercial and legal 
instrument of a comprehensive and modern char- 
acter which is intended to establish a lirm basis 
for relationships of trade, industry, and naviga- 
tion between our two countries, as well as between 
individual citizens, on which our economic, cul- 
tural, and human relations can freely develop. I 
hope that this treaty will give new and strong 
momentum to the stream of living forces which in 
the past few years has begun to flow again from 
the manifold contacts and relations between the 
United States and Germany. 

It was the particular aim of these negotiations 
to make our mutual trade relations as liberal as 
I)ossible and to create favorable conditions for the 
exchange of goods and services betv.-een our two 
economies. I am therefore convinced that the 
treaty will have fruitful effects for the activities 
of our two countries. 

A^^lat gives this event deeper significance is 
the fact that the Federal Republic of Germany 
concluded its fii'st Treaty of Friendship, Com- 
merce, and Navigation with the great American 
nation. 

In the last few years and months we have 
rightly recalled to ourselves again and again the 
importance for us and for the other freedom-lov- 
ing countries of the protection that our m.ightj' 
American friend is offering us against the threat 
to which we are continuously exposed. But we 
do not want to forget that the worth of that pro- 
tection is not higher than the values it protects. 



A rich and prosperous life shall be possible 
within this protected area; free countries shall 
peacefully compete in a free exchange of their 
gifts and (lie products of their industry to promote 
the welfare of their citizens and to further their 
civilization. 

Tiiese convictions form the basis of the impres- 
sive development of the United States and are the 
same ideals which form the foundations of our 
own political and economic life. 

This common character of the ethical founda- 
tions is tlie basis of the friendship that unites our 
nations. This friendship is therefore much more 
than a mere community of interests which owes 
its existence to a present, and we hope passing, 
external threat. 

That is why this friendship constitutes a last- 
ing element in the life of our nations. To bear 
witness to this is the main object of the treaty 
we have just concluded. 



Iranian Oil Agreement 

Press release 610 dated October 2S 

The U.S. Government is happy to learn that the 
agreement-in-principle, signed on August 5, 195i, 
between the Government of Iran and an Inter- 
national Oil Consortium, has been ratified by the 
Iranian Senate [October 28] following its recent 
approval by the lower house. 

This action by the Iranian Parliament lays the 
basis for the immediate resumption of Iran's oil 
industry. 

Under the leadership of the Shah and Prime 
Minister Zahedi there is good reason to believe 
that Iran will be in a better position than in the 
recent past to make full use of its great natural re- 
sources; that, as a result of this far-reaching 
development, its people will enjoy a new era of 
economic and social progress; and that they will 
play an ever-increasing role in the maintenance 
of peace and security in the Middle East. 



November 8, 1954 



683 



A Preview of the U. S. Position at the Rio Conference 



&3/ Henry F. Holland 

Assistant Secretary for I nter- American Affairs ^ 



The bond that unites our American States is in 
its essence a spiritual tie born of our common 
struggle for liberty and of our consecration to 
identical moral and ethical standards. It is a 
relationship which we believe ennobles all those 
who share it. Its genius is our knowledge, proven 
again and again by experience, that through pa- 
tience, understanding, and tolerance this kinship 
becomes steadily more meaningful — a source of 
sti'ength and gi'owth for all of us. Tonight I 
shall undertake a second report on the economic 
aspects of that relationship. The first was made 
in a talk given last April in New Orleans.- I 
still adhere to the convictions expressed then and 
shall recall one or two of them to you. 

Our basic goal in the economic field in this hemi- 
sphere is to make an effective contribution to the 
establishment in each American Republic of a 
strong, self-reliant, and durable economy, one 
that will mean better living standards for all our 
peoples. We recognize and we shall vigorously 
defend the right of each American State to deter- 
mine the methods by which it will seek that goal. 
Correspondingly, in our contributions we shall try 
to be consistent with those sound principles which 
experience has demonstrated to be the basis of 
strong economies. 

One of these is the principle that governments 
should invade the field of business only when ab- 
solutely necessary and then, if possible, only on a 
temporary basis. Where private enterprise is 
willing to undertake the task, it should be made 
responsible for the production, distribution, and 



' Address made before the Pan American Society of the 
United States, Inc., at New Yorlj, N. T., on Oct. 27 (press 
release 608). 

' Bulletin of May 17, 1954, p. 704. 



marketing of goods and services. The role of 
governments in the economic field, we believe, is 
to create those conditions under which private en- 
terprise can perform its task with maximum ef- 
fectiveness and with full respect for its obliga- 
tion to society and humanity. These conditions 
include guaranties of property and contract rights ; 
an opportunity to earn a reasonable rate of return 
adequate to attract new capital; a stable and ex- 
I^anding international trade; the establishment 
of sound currencies ; clearly enunciated and stable 
economic policies; the encouragement of strong 
and independent labor movements. They also in- 
clude constant vigilance for the phj'sical and 
spiritual needs of our people. 

In April I emphasized the importance of the 
Conference of Ministers of Finance or Economy to 
be held next month in Rio de Janeiro. That con- 
ference gives us an opportunity to define economic 
goals, to compare our policies, and to coordinate 
them as far as possible. At Rio we can work to- 
ward the establishment of that kind of economic 
relation that should exist normally and perma- 
nently between mature, peaceful, and self-respect- 
ing nations, nations which are genuinely and 
deeply interested in each other's welfare. The 
time has come for us to concentrate on the kind of 
help which we can give to each other consistently, 
dependably, and on a long-term basis, shifting our 
emphasis from temporary and emergency meas- 
ures. 

In New Orleans I said that in preparation for 
the Rio Conference we would undertake to clarify 
and define our Government's policies and would 
discuss them with our sister states well in advance 
of the meeting. In other words, we do not view 
that conference as an occasion for any dramatic 
disclosures of new policies. We are considerably 



684 



Deparfment of State Bulletin 



more interested in perforniiinco and accomplish- 
ment. That calls fur extensive consultation not 
only at the conference but before and after it. The 
economy of tliis hemisphere is a whole composed 
of interrelated parts. The more smoothly those 
parts fit together, the stronger is the whole. This 
process of interlocking is not a task to be under- 
taken and concluded at the Rio Conference. It 
is a long-term job, in which that conference should 
be only an episode, albeit a very important one. 

Preparations for Rio Conference 

Taking this approach we began in April to pre- 
pare for the conference. A sub-Cabinet commit- 
tee comprised of representatives from every 
interested department and agency of our Govern- 
ment met twice weekly over a period of months 
to review our past economic policies in the hemi- 
sphere and to make specific recommendations for 
the future. The work of that group was largely 
concluded by the latter part of August, and its 
recommendations have been accepted. A number 
of us have spent much of the intervening time dis- 
cussing those plans and policies with tlie govern- 
ments of our sister republics. Let me outline them 
for you. 

"We have reemphasized that our mutual Ameri- 
can goal must be a world at peace, in which the 
free democratic peoples can prosper and in which 
every man may have a chance to provide for his 
family improved standards of living and better 
opportunities for the future. Perhaps the most 
important single economic development in the 
hemisphere is the growing determination among 
men everywhere somehow to achieve better living 
standards, to feed, clothe, house, and educate 
themselves and their families better. That de- 
termination, if encouraged, can become a powerful 
factor in our progress. If the Rio Conference is 
to have any significance, it must be remembered 
as a time when the American family assembled to 
rededicate itself to a joint and several effort to 
better the lives of its men, women, and children. 

Americans everywhere as they go about their 
daily work must have the confidence that here 
work and self-discipline will achieve the kind of 
housing, clothing, food, and education that make 
for dignity in living. Our children must look at 
their future with the same confidence. As nations, 
as peoples, as business and industrial communities, 
everj- step that we take toward achieving tliis goal 



will be richly rewarded. I^et me emphasize that, 
wliile tliat achievement will surely help in our 
united eilort to eliminate communism from the 
Americas, our purpose would be the same if there 
were no Conmiunist problem. It is our own in- 
terest in making of this hemisphere a better home 
for ourselves and our children that makes us stead- 
fast in this purpose. An acceptable standard of 
living shoukl be sought as an end in itself, not as 
a defense against communism. 

The primary burden in each state nnist be borne 
by its own people and its own government. Noth- 
ing tliat the government or people of one country 
can do will raise living standards in another unless 
the internal conditions essential for progress are 
already there. If they are, we can, however, 
hasten the process somewhat by our own helpful 
policies. These to a considerable extent depend 
upon economic and legislative actions by our gov- 
ernments. This is particularly true with respect 
to the elimination of unnecessary controls and 
regimentation of economies. An outstanding ex- 
ample is the recovery made by Peru in the last 
.5 years where unsound controls and regulations 
were removed and export and import trade were 
progressively allowed to set the exchange rates 
without artificial manipulation. As was to be 
expected, the initial effects were disquieting, but 
the long-term advantages of a free economy are 
now fully apparent. 

So each of us must be ready to carry his own 
load. That does not mean, however, that he must 
carry it alone. We know now that, just as there 
is an American political security, there is an Amer- 
ican economic security in which we are all partners, 
and that whenever in any American State that 
freedom and that security are impaired, every 
other member of the family suffers. The long- 
term self-interest of each of us justifies our helping 
others to progress steadily toward a solution of this 
basic economic problem. The fight against hun- 
ger, disease, illiteracy, and human misery in this 
hemisphere must become more of a joint and 
several effort, each facing his own problem 
squarely but each trying in good faith to make 
some contribution to the efforts of the others. We 
attach great importance to the combined aspect 
of this effort. The problem is not how one na- 
tion can help 20 others to raise their living stand- 
ards. It is how every American State without 
neglecting its domestic responsibilities can find 



November 8, 1954 



685 



some ^Tay to help the other 20. The problems of 
none of us are so great but that each can find some 
way to demonstrate his sincere interest m the ^vei- 
f are of every other. 

Wiat have we concluded will be our own con- 
tribution « We believe that it can be most effective 
in three fields-commerce, fbnxnce, and technical 
assistance. In each, we have tried to define poli- 
cies which are consistent with our laws and with 
what we believe to be practically possible m the 
United States today. Anything else would be pure 
theory, and we are interested in accomplishment. 
We shall, of course, take active interest m otlier 
fruitful fields of cooperation such as the encour- 
agement of tourist travel. 

Strengthening Commerce 

In the field of commerce our policy will be that 
announced by Tresident Eisenhower m his mes- 
sage on foreign economic policy sent to Congress 
last March.^ By those means which our laws per- 
mit and which are practically achievable we shall 
attempt to achieve more free and healthy trade and 
payments, to stabilize and strengthen our inter- 
national commerce, and gradually and selectively 
to reduce those artificial barriers which obstruct 
it both here and abroad. . 

It may be hard to develop a policy, but it is 
harder still to apply it in the individual test cases 
Here in this country when an issue is to be decided 
those on each side support their views tenaciously 
and energetically. That is wholesome even though 
it produces some pretty hot contests, particularly 
in the field of tariffs and quotas. Moreover, even 
people who wholeheartedly support a general 
policy of expanding foreign trade will fight hard 
for higher tariffs to protect their own interest. 
We would be unrealistic if we expected people 
to act in a less human fashion. 

One thing is certain. Again and again the 
President's policy on foreign trade will be put to 
test, and each time it is, these clashes between 
opinions and interests will occur. No one can 
prophesy with certainty their outcome m specific 
cases and under specific circumstances. It is obvi- 
ous from experience in a world of affairs that our 
performance in the application of our announced 
policy in the field of international and inter-Amer- 
ican trade will not be uniform. However, I be- 



= /Mr/., Apr. 19, 1954. p. C02 
686 



lieve that we can say with conviction that the 
great majority of our decisions will be consistent 
with the President's policy and that the exceptions 
will be based upon good and valid reasons. In my 
iudgment there has never been a time when the 
people of the United States and their representa- 
tives in the legislative and executive branches of 
our Government have been more aware of the 
crucial importance of international trade to our 
survival. To preserve the strength of our economy , 
this Nation must export and import. To export 
we must accept the goods of other nations m pay- 
ment for ours. It is just as simple as that. Un- 
less we buy more from our neighboi-s m this 
hemisphere and sell more to them, neither our 
economies nor theirs will develop rapidly. 

I am asked what guaranties we can give of the 
stability of this foreign trade policy. The an- 
swer is obvious. The best guaranty of that policy 
lies in spreadinsr to every corner of our country 
a clear understanding of the stake that each 
United States citizen has in our foreign trade. It 
we reduce our purchases of sugar from Cuba, by 
the same dollar amount we reduce our sales to her 
of automobiles, farm implements, rice, and other 
agricultural products. If we do not buy oil from 
Venezuela, we correspondingly reduce our tre- 
mendous volume of exports to her. The same 
happens if we reduce our purchases of wool from 
Uruguay or of coffee from Brazil, Colombia, and 
the other coffee-producing countries, if we do not 
buy lead and zinc from Canada, Mexico, and Peru, 
copper from Chile, tin from Bolivia. The same 
truth holds throughout the hemisphere. 



Capital for Economic Development 

The second field in which we shall try to make 
an effective contribution toward raising living 
standards is that of finance. To progress eco- 
nomically a nation must have capital. It must 
come, of course, from either public or private 
sources. By far the more prolific is the last 
Private investors in the aggregate are able at any 
time to produce quantities of capital that enor- 
mously exceed the maximum that governments 
can contribute. Today much private capital is 
available here and in other nations which accu- 
mulate it. 

This being true, if a government wants to at- 
tract capital for economic development, what bet- 
ter can it do than institute those policies and cre- 



Deparfmenf of Sfafe Bullefir 



ate those coiulitions that will lopieally encoiirajre 
all private investors, both domestic ami foreign. 
Both proups on the whole will react in the same 
way to a given set of conditions. .Viiytliiiig that 
discouragccb a Mexican investor is likely to dis- 
courage one from the United States or Argentina. 
By the same token conditions that attract one will 
attract the other. 

I am afraid we may have placed too much em- 
phasis on measures to attract the foreign investor. 
A government that wants foreign investors should 
first take a careful look at the local investor. If 
he is exporting his capital or investing it oidy in 
such nonj^roductive things as real estate, then it is 
a reasonable certainty that the foreign investor 
will l>e reluctant to enter. But if the domestic 
businessman is demonstrating his own confidence 
by investing in the sound and productive eco- 
nomic development of his country, then in order 
to attract the foreign investor it is necessary to 
add only two factors. The first is assurance of 
equal treatment to domestic and foreign investor, 
and the second is reasonable assurance of an op- 
portunity to repatriate profits. "Wliere the local 
situation is such that the domestic investor is ac- 
tive, add these two factors and the foreign inves- 
tor will come if he is wanted. 

We believe that in the 20th-century American 
busines-sman, be he Brazilian, Mexican, Xorth 
American, or what you will, lies the greatest hope 
for prosperity in our hemisphere. Private enter- 
prise went through a period of evolution when its 
lack of interest in basic human welfare brought 
it into ill repute and led nations to experiment with 
other systems. Those experiments have generally 
failed miserably, producing high costs, inferior 
goods and services, financial and political insta- 
bility. They tended to make people lose confi- 
dence in currency, their savings, and their ability 
to take cai'e of themselves and to devote their at- 
tention instead to plans to insure that govern- 
ments would take care of them. "We may now be 
emerging from that period of experiment. If so, 
it was not in vain. 

In the last decades and particularly since World 
War II, I believe a new kind of businessman has 
developed throughout the American hemisphere, 
a 20th-century businessman, one with a social con- 
.science, who understands that a business which 
habitually fails to pay its workers a decent liveli- 
hood is not an asset to its owners, to its commu- 



nity, or to i(s nation. This new businessman has 
demonstrated a willingness to discii)liiie himself 
and to submit to just discipline from his govern- 
ment. .\t the same time lie lias preserved that 
relentless drive, inexliaustible resourcefulness, and 
fierce pride in excellence of performance that no 
other system has even approached. lie deserves 
the support of our governments. 

I am told that we place too much emphasis on 
the role of private enterprise in solving our eco- 
nomic problems. The system has no peculiar 
sanctity. Our attitude toward it derives from the 
fact that it is the only economic system that fully 
preserves our philosophy of the dignity of every 
nam ; because better than any other system yet de- 
vised by man it has demonstrated the ability to 
make vast quantities of goods and services avail- 
able at reasonable prices. Only private enter- 
prise is e(iual to the task of developing the huge 
resources of this vast hemisphere, resources which 
could support a greatly increased population and 
at a inucli higher standard of living. 



Government Financing 

Yet we know that private enterprise cannot do 
the job without some govermnent hel[). There are 
development projects that are essential to the prog- 
ress of our countries and for which ))rivate capital 
will not be available even under the most favorable 
circumstances. That is true heie in the United 
States as well as in Latin America. 

For those projects governmental fuiancing is 
needed. In some cases the local government will 
be equal to the task. In others it will be unable 
itself to provide the required amount of capital 
but will be able to service a long-term international 
loan. 

Here we think first of the International Bank. 
It was created to perform precisely this task. On 
the whole its record has been excellent. Its per- 
sonnel is highlj' trained and experienced. It has 
capital available to lend. It would be shortsighted 
not to make maximum use of the bank. However, 
we recognize that there will bo i^rojects, both public 
and private, for which foreign financing will be 
required and which will lie outside the normal 
scope of Intei-natioiial Bank lending. 

To meet this need the United States proposes to 
intensify and expand the activities of the Export- 
Import Bank. Through it we shall do our utmost 
to satisfy all applications for economic develop- 



November 8, 1954 



687 



ment loans that fulfill certain sound and logical 
standards. First, the project must be one for 
which private capital would not reasonably be 
available, even under favorable conditions. Pref- 
erence will be given to applications from countries 
which have taken measures which would reason- 
ably encourage private capital. The project must 
be one for which it cannot be reasonably expected 
that capital will be available from the local gov- 
ernment or from the International Bank. 

Secondly, the loan itself must be economically 
sound. We feel that unsound loans, those which 
a reasonable man must assume will not be repaid, 
do more harm than good. A defaulted loan im- 
pairs a nation's credit and makes it harder for 
it to negotiate loans which would otherwise be 
perfectly sound. A defaulted loan creates resent- 
ments at home and abroad. Several Latin Amer- 
ican governments have expressed to us strong 
opposition to accepting so-called soft loans, point- 
ing out that the liquidation of old debts which 
should never have been incurred imposes an un- 
justified burden on a national economy. On the 
other hand, acceptance of a sound loan stand- 
ard encourages us all to follow those wholesome 
policies that not only increase the borrowing 
cajjacity of governments but lead to the establish- 
ment of strong business enterprises which can 
themselves qualify for loans that do not encumber 
the credit of their governments. 

Third, the project to which the loan relates 
must be one in the mutual interest of the two 
governments and their peoples. The credit of a 
government should not be burdened for a project 
which has no bearing on the welfare of the tax- 
payers who must eventually repay it. 

Lastly, the amount of the loan should not exceed 
the prudent lending capacity of the Export- 
Import Bank. After thoughtful consideration, 
we believe that the bank's capacity is and will 
continue to be adequate fully to support this 
policy. In reaching this conclusion we are en- 
tirely aware that this policy implies a substantial 
increase in the bank's activities. 



Technical Assistance 

I now come to the field of technical aid. This 
hemisphere is richly endowed with natural and 
human resources which are as yet but inadequately 
developed. Through technical assistance and 
training, these presently available resources can 



more quickly and effectively be put to use. 
Through technical assistance, agricultural lands 
which barely feed their occupants can be made to 
produce marketable supplies for cities as well. 
Technical assistance can correct substandard hous- 
ing by making information available on constinic- 
tion methods and economical materials. Through 
tecluiical assistance, disease can be reduced and 
life expectancies raised. In the field of tech- 
nical assistance almost every nation can fuid some 
way to make its contribution to a vast attack on 
human misery. Our policy will be to strengthen 
and to diversify our contribution in the field 
of technical assistance, but only, of course, if 
this is desired and requested by the governments 
concerned. 

The policies which I have outlined mark, as 
you might expect, a compromise between the sin- 
cere convictions of those within our Government 
who would not have gone so far and those who 
would have gone farther. A number of proposals 
submitted from within our own Government or 
from abroad have not been accepted. We are not 
foreclosing the discussion at Rio of any proposal 
supported by any delegation. We shall partici- 
pate in all discussions and in good faith. How- 
ever, we feel that it is constructive to announce 
our own views far in advance of the conference and 
to invite those of the other governments so that the 
work of coordinating our policies and our efforts 
can begin long before we arrive at Rio. 



Price Stabilization 

The governments of Latin America are inter- 
ested in devising means to stabilize prices for the 
products which they sell in world markets. The 
problem is one M'hich concerns us as well, for we 
also have exports whose prices fluctuate widely. 
We have attempted by various means to solve this 
problem here at home. None has proved entirely 
successful. This does not mean that we will 
abandon our efforts to find a solution or that we 
will be unwilling to consider those proposed by 
other American States. However, our own ex- 
perience leads us to believe that a hemisphere-wide 
program which would simply shift to this Nation 
a large part of the risk for price fluctuations is 
not justified by the nature of the problem. The 
cost would exceed our capacities whether the pro- 
gram contemplated direct payments or buffer 
stocks created to support prices. 



688 



Department of State Bulletin 



We arc reluctant to jruarantee to finance what- 
ever portion of tlie cost of developnieut, projects a 
local government may find itself unable to carry 
liccause of a drop in prices of its floods. Such 
l)rograins would tie up part of the j^'overnmcnt's 
borrowing capacity without any certainty that it 
would ever in fact be used. 

There arc practical ways to reduce the nuigni- 
tude of the problem, even if it cannot be eliminated. 
Maintaining high and stable levels of economic 
activity and income will help. Assm-ance to pro- 
ilucers everywliere of greater and moi-e depend- 
able access to the world's markets will neutralize 
some of the factors that produce these violent 
tluctuations in prices. If we maintain more ac- 
curate methods of estimating future supply and 
demand, those unforeseen shortages and excesses 
that distort prices can be minimized. 

Another proposal which has been made is that 
we create an inter-American bank whose capital 
would be largely furnished by the United States 
and which would make loans directly to foreign 
companies without the guaranty of their govern- 
ments. "We feel that such a bank would either 
compete with private lending institutions or would 
largely duplicate services available through the 
Export-Import Bank. The latter is now author- 
ized to extend credit to private borrowers whether 
domestic, foreign, or mixed, and it does not always 
require a guaranty from the local government. So 
flexible is the service offered by the Export-Import 
Bank that there are few lending operations which 
it cannot undertake within the limits of the policy 
we have outlined. We feel, therefore, that the 
benefits from creating still another independent 
banking institution would not justify the expense 
and time required to organize it, assemble and 
train its personnel, and establish operating proce- 
dures. Better, quicker, and more effective, we 
feel, is the achievement of those same benefits 
through intensified activity of the Export-Import 
Bank. 

We have heard but little support either at home 
or abroad for massive programs of grant aid in 
this hemisphere. I believe that it is generally 
recognized that, save in cases of real emergencies 
and such special projects as the Inter-American 
Highway, these programs are neither needed nor 
wanted by the other American States. 

I should mention at least briefly the question so 
often asked as to whether our policy is not really 

November 8, J 954 

320480—54 3 



to discourage industrialization in Latin America, 
forcing it to supply us with raw materials which 
wo will fabricate and resell as nuvnufactured goods. 
Such a policy would be directly contraiy to our 
own best interests. One of our problems is to sell 
our own foods and raw materials, as well as our 
manufactured goods. We export more than four 
times as much to Canada as to any other country 
in the world. Canada is rapidly industrializing, 
and the more she industrializas the more she buys 
from us and we from her. The same is true in 
Latin America. Mexico, Venezuela, and Cuba are 
industrializing rapidly. They are, respectively, 
our third, fifth, and sixth most important cus- 
tomei-s. Obviously, we serve our own interests by 
encouraging sound industrialization in Latin 
America. 

These, then, are the policies which we are sub- 
mitting to the Latin American Govermnents and 
to the Cabinet Ministers who will head their dele- 
gations at Rio. I have heard surprise that they 
include no dramatic, startling new element that 
will create a theatrical impact at Rio. I am 
grateful for that. It lets us center emphasis and 
attention where it should be centered, on our great 
need to define our basic problem — how to better the 
lives of our people — and to set about solving it. 

The reaction of the South American Govern- 
ments and business communities to these policies 
is in my opinion profoundly significant. In the 10 
South American capitals whence I have just re- 
turned we found general receptiveness to our be- 
lief that if vigorously and energetically pureued 
by our Government these policies will meet the 
need that exists in this hemisphere. Latin Ameri- 
cans are clear and intensely realistic thinkers, and 
I found everywhere a willingness to face their 
problems squarely and analyze them with com- 
mendable courage. Om- sister republics are not 
waiting passively for us or for anyone else to come 
and solve their problems for them. The other 
membei-s of tliis American family look to us for 
economic policies and conditions of trade which 
fully protect our own interests but which are sta- 
ble, dependable, and generous. They look to us as 
a source of capital on sound terms and conditions. 
They are anxious to participate with us in pro- 
grams of tecluiical assistance that will pool and 
extend our common resources in that field. They 
agi-ee with us that the 20th-century private busi- 
nessman, whatever may be his nationality, can do 



689 



more for this hemisphere than can all our govern- 
ments combined, and that he d&serves our support. 
The great question mark that I found every- 
where was not as to the adequacy of these policies 
but as to how we will apply them. These policies 
require self-restraint and some sacrifice from us. 
They will prove more controversial here at home 
than programs whose only significance is their 
dollar cost. These policies are aimed squarely at 
the basic needs of Latin America — stable and ex- 
panding markets, access to sound development 
loans, technical assistance. Their effect in this 
hemisphere can be tremendous. If we are loyal 
to them, if we apply them vigorously and gener- 
ously, we will have done our part. With these 
assurances from us any American State that is re- 



solved to combat inflation thi'ough sound fiscal and 
monetary policies, and to clear the way for an 
enlightened private enterprise, can reasonably ex- 
pect to make steady progress toward the goal to 
which I have so often referred. I am confident 
that the governments and the peoples of this hemi- 
sphere are disposed to adopt that course and to 
pursue it steadfastly. This conviction leads me 
to submit that, if we as a people and we as a Gov- 
ernment determine that these undertakings which 
we propose to make to Americans everywhere shall 
be fairly and generously fulfilled, then truly we 
stand in this hemisphere on the threshold of an 
era of great progress which will make of our lands 
a better inheritance for our children and will earn 
for us the gratitude of future generations. 



The Communist Conspiracy in Guatemala 



Statement hy John E. Peurifoy 
Ambassador Designate to Thailand ^ 



Let me say that I am deeply and sincerely 
pleased at the opportunity to testify before your 
committee. I believe that the Communist attempt 
to seize Guatemala, and particularly their reversal 
last June, is one of the most dramatic episodes 
that has taken place in a long and tremendously 
costly ideological struggle that has engulfed us 
since the end of AVorld War II. As several wit- 
nesses commented, we liave seen one free people 
after another disappear behind the Iron Curtain. 
Last June in Guatemala, for the first time one of 
them returned. The revolution led by Col. 
Carlos Castillo Armas demonstrates what a few 
courageous, determined, and dedicated persons can 



' Made before the Subcommittee on Latin America of 
the House Select Committee on Communist Aggression on 
Oct. 8. Mr. Peurifoy was Ambassador to Guatemala from 
Oct. 5, 1953, to Sept. 15, 1954. 

For a documentary study on Intervention of Interna- 
tional Communism in Guatemala, see Department of State 
publication 5,556, for sale by the Superintendent of Docu- 
ments, U. S. Government Printing Office, Washington 25, 
D. C, 35 cents. 



accomplish even in the face of the organized might 
and ruthlessness of a police state. 

Before beginning my testimony, I would like 
to take this opportunity to explode a popular and 
flattering myth regarding the part that I person- 
ally played in the revolution led by Colonel Cas- 
tillo. My role in Guatemala prior to the revolution 
was strictly that of a diplomatic observer: to in- 
form my Government regarding events there and, 
when requested to do so, to advise the responsible 
officials in the Department of State on policy mat- 
ters concerning Guatemala. The first and only 
active role that I played in the events last June 
was to lend my good offices to assist in negotiating 
the truce between the forces of Colonel Castillo 
and the military junta that was established in 
Guatemala after President Arbenz resigned. And 
even this role, Mr. Chairman, was undertaken 
only at the request of the junta. The revolution 
that overthrew the Arbenz government was engi- 
neered and instigated by those people in Guate- 
mala who rebelled against the policias and ruthless 



690 



Department of State Bulletin 



oppression of tlie Communist-controlled gov- 
ernment. 

It is my understanding, Mr. Chairman, that the 
purpose of your hearings is to determine: 

1. Whether or not the government of President 
Arbenz wtvs controlled and dominated by 
Communists. 

2. Whether or not the Communists who domi- 
nated Guatemala were in turn directed from the 
Kremlin. 

3. AVhether or not the Connuunists from Guate- 
mala actively intervened in the internal ail'airs of 
neighboring Latin American Republics. 

4. Whether or not this Connnunist conspiracy 
which centered in Guatemala represented a men- 
ace to the security of the United States. 

My answer to all four of those questions is an 
unequivocal "yes." 

The Arbenz government, beyond any question, 
was controlled and dominated by Communists. 
Tliose Communists were directed from Moscow. 
The Guatemalan Government and the Communist 
leaders of that country did continuously and ac- 
tively intervene in the internal affairs of neigh- 
boring countries in an effort to create disorder and 
overthrow established governments. And the 
Communist conspiracy in Guatemala did represent 
a very real iuid very serious menace to the security 
of the United States. 

And with your permission, Mr. Chairman, I 
would like to add a fifth point ; that menace still 
continues in Latin America. The Red conspiracy 
in Latin America has not been completely 
crushed. The loss of Guatemala represents a seri- 
ous setback to the Kremlin, not a final defeat. As 
President Castillo pointed out in a statement 
before j'our committee, the democratic forces have 
merely won the first battle in a long war. 

Of course it is true that the seriousness of the 
threat to our security has been greatly diminished 
since Colonel Castillo's successful revolution. 
Nevertheless, as long as this conspiracy is active — 
and I fear that will be for many years to come — 
the menace will continue to be a very real one in 
this hemisphere. 

That is the reason why I think your committee 
is rendering a very substantial service to the 
American people in holding these hearings. Your 
committee is alerting the public to the danger to 
us represented by Moscow's program of aggression 
in Latin America. As you know, Mr. Chairman, 



it is exceedingly difficult for our Government to 
formulate elective policies to combat a situation 
as si>rious as this one without the support of a well- 
informed public. 

I believe that these hearings will not only be 
invaluable to C'ongress in evaluating legislative 
proposals concerning Latin America but that they 
will also greatly assist the executive branch by 
mobilizing informed public opinion. 

Now, with your permission, I should like to 
elaborate brieOy on the four points summarized 
alH>ve. 

Communist Control of Arbenz Government 

I believe that an incident which occurred shortly 
before I became Ambassador to Guatemala illus- 
trates conclusively the fact that the government 
was under the complete domination of the Com- 
munists. One of the principal programs of the 
Communist Party in Guatemala was the agrarian 
reform, which they used as a weapon to gain politi- 
cal control over the farmworkers and the landless 
peasants. I understand that an officer of the De- 
partment of State may testify before your com- 
mittee at a later date and will be prepared to give 
you a more detailed discussion of the agrarian 
reform law. For the purpose of my testimony, it 
is sufficient to state that under the agrarian reform 
law President Arbenz was the final arbiter of any 
and all disputes concerning the expropriation of 
land and its redistribution among the peasants. 
Owners of expropriated land were denied the right 
of appeals to the courts. Nevertheless, one Guate- 
malan landowner did appeal. And on February 
6, 1953, the Supreme Court of Guatemala rocked 
the government and particularly the Communist 
Party by announcing, as a result of a 4—1 vote, 
that it would hear the landowner's appeal. 

The decision was immediately and angrily de- 
nounced by the Communists, who charged that it 
was in violation of that section of the law denying 
the right of such appeal. Carlos Manuel Pellecer, 
Victor Manuel Gutierrez, Jose Manuel Fortuny, 
and other Communist leaders demanded that the 
court be impeached. The next day a resolution 
was submitted to the Congress by a Communist 
deputy, was immediately passed, and the entire 
court was impeached. New judges were quickly 
appointed, including the one who had voted 
against granting the hearings, the decision was 
hastily i-econsidered by the new court, and the 
owner was denied the right of appeal. 



November 8, 1954 



691 



Mr. Chairman, I submit to this committee that, 
when the Communist Party can demand and get 
the dismissal of a Supreme Court of a country, 
then the Communist Party, for all practical pur- 
poses, controls the government of that country. 

Tliis, however, is only one illustration of the 
degree of control that the Communists exercised 
over the government of Guatemala during the 
regimes of Juan Jose Arevalo and Jacobo Arbenz. 

The facts of Communist penetration of the 
Guatemala Government and of the political, eco- 
nomic, and social life of the nation are well known 
to your committee. It is hardly necessary for me 
to recall the salient features — that of the 56 mem- 
bers of the Guatemalan Congress 51 were members 
of the "national front" supporting Arbenz and 
dominated by its Communist members; that prin- 
cipal Government agencies in agriculture, social 
security, propaganda and public information, edu- 
cation, and labor were in the direct hands of the 
Communist Party ; that the labor organization of 
the country was entirely dominated by Commu- 
nist-controlled unions affiliated with the Commu- 
nist Western Hemisphere labor arm, the CTAL, 
and with the worldwide Soviet labor instrument, 
the WFTU. In addition, the press, radio, and pub- 
lic forum were increasingly warped into tools of 
Communist propaganda and relentlessly being 
closed to anti-Communistic patriotic Guatemalans. 
The Guatemalan delegates to international organi- 
zations sucli as the United Nations, the Organiza- 
tion of American States, and the numerous 
regional and functional agencies of international 
cooperation whicli liave been set up to aid the 
■worldwide cause of peace were mere spokesmen 
for Soviet aggression and deception. 

Part of Kremlin Strategy 

This Communist penetration in Guatemala was 
the most striking example of the Kremlin's 
strategy in Latin America. Busy with power 
•expansion into Europe and Asia, the Red rulers 
of Russia have long pushed their conspiracy in 
Latin America as a diversionary tactic which, 
while sliowing no immediate gain of territory 
under their domination, would at least weaken 
and liarass our defenses. By creating a beachhead 
witliin our own zone of vital security, from wliich 
sabotage and subversion could be achieved against 
ns and our neighbors, the Kremlin aimed at pro- 
moting anarchy within the Western Hemisphere; 



they aimed at demoralizing this hemisphere by 
breaking its unity against Communist aggression j 
and throwing the inter-American system into a 
state of confusion and dispute. They sought to 
divert Latin American attention from their depre- 
dations and crimes in Europe and Asia by pushing 
forward Spanish-speaking front men who, in 
native accents, accused the United States of the 
aggressions and crimes which the Soviet itself was 
actually performing. 

The Communists in Guatemala were working 
for these Soviet aims under consistent and disci- 
plined Soviet control. This control was exercised 
directly through the Conununist Party itself. 
Seven of the 11 members of the Party's political 
committee are known to have visited the Soviet 
Union, 6 of them having made trips in the past 
2 years. Jose Manuel Fortimy, the Party's Secre- 
tary General, took liis most recent trip to Moscow 
from November 5, 1953, to January 12, 1954. The 
Party's leadere in labor unions, agrarian unions, 
and teacher unions all visited the Soviet Union in 
recent times, at least within the past 2 years, as 
did also leaders of Communist- front organizations 
such as the youth organization, the women's or- 
ganization, and the university students' front. 

The effectiveness of the training and instruction 
given to the Guatemalan Communists while in the 
Soviet Union was immediately manifest in the 
close integration of the Communist institutions in 
Guatemala with Soviet policy. No case of Soviet 
direction was more clear than what occurred after 
the return of Fortuny last Januai*y. A press and 
propaganda campaign, stirring alann over resist- 
ance of anti-Communists to the Arbenz regime, 
was immediately cranked up in the endeavor to 
prepare public opinion for the blow to fall. Then, 
at the end of January 1954, the dramatic announce- 
ment was made of the uncovering of a subversive 
"plot," with the sinister note of foreign interven- , 
tion, linking the United States by innuendo as | 
"the country of the North" from which direction 
and aid were allegedly being furnished the 
"plotters." 

This set the stage for wholesale arrests of anti- 
Communist citizens and for subsequent imprison- 
ment, torture, and even murder. Many who were 
later released, beaten and broken, were puslied 
across the frontiers into Mexico and Honduras by 
the vicious trunclieon-wielding police. These vic- 
tims of Communist suppression comprised out- 
standing leaders in the free labor movement, the 



«92 



Department of State Bulletin 



independent press, radio connnentatore, and the 
decent citizenry wlio did not bow down to a Com- 
munist state ruled by Arl)enz. Your connnittee is 
well aware that these tactics of brutal suppression 
and terroi'ization of the opposition are character- 
istically the last blow of coinniunisui in a country 
outside of the Soviet Union before complete sei- 
zure of power. 

Extensive Travels of Guatemalan Communists 

The contacts between the Guatemalan Commu- 
nist Party and the international Communist move- 
ment were easily niaintuined through travel other 
than to Moscow. Guatemalan Communist labor 
leaders, for instance, affiliated with and working 
for the Soviet international labor organization, 
traveled to the WFTU headquarters in the Soviet 
sector of Vienna in Eastern Europe and made 
lengthy visits to the Conununist centers in Buda- 
pest and Bucharest, under the guise of attendance 
at annual conventions of international Communist 
labor organizations. The youth organization, the 
"Alliance of Democratic Youth of Guatemala," 
affiliated with the "World Federation of Demo- 
cratic Y'outh with headquarters in Bucharest, Ru- 
mania, sent its leaders behind the Iron Curtain 
each j-ear to attend and receive instructions at 
these Soviet congresses. 

The women's organization, the "Guatemalan 
Women's Alliance," affiliated with the Interna- 
tional Federation of Democratic Women, had 
headquarters in the Soviet sector of Berlin. The 
student group, "The Democratic University 
Front," affiliated with the International Student 
Unions with headquarters in Prague, Czechoslo- 
vakia, sent its delegates to these student meetings 
for their dose of Communist indoctrination and 
organization. The phony peace front, "The Na- 
tional Peace Committee," affiliated with the World 
Peace Council, also with headquarters in Com- 
munist Czechoslovakia, made amjjie use of the 
various Soviet-sponsored so-called "Peace Confer- 
ences" held in Europe and Asia, as a means of 
orientation, instruction, and indoctrination of 
Guatemalan Communists traveling as delegates to 
these affairs. 

I have for the committee's attention a chart 
indicating travel back and forth to the Soviet 
Union by principal Guatemalan Communists in 
recent years.^ 



' Not printed. 



No one knowing the complexity of operating a 
large political movement on an international scale 
i-an observe the cohesion which the (Jominunist 
organizations in Guatemala displayed with their 
international Communist headquarters without 
realizing that such would be impossible without 
the most efficient and rapid system of communica- 
tions, instruction, and directives. Frequent travels 
to Moscow, useful and necessary though they are 
for training and indoctrination, are hardly suffi- 
cient to assure simultaneous action of all cogs in a 
worldwide machine. This system requires com- 
munications, and these we know were regularly 
transmitted by courier, radio, and cable. The 
presence of the Soviet Embassy in neighboring 
Mexico kept open a channel of communications, 
enjoying tlie privilege of diplomatic immunity and 
confidential codes; and it was no accident that 
the two principal Guatemalan representatives in 
Mexico were both identifiable Communists, Am- 
bassador Alvarado Fuentes and Consul General 
Pinto Usaga. 

The Soviet itself did not plant its own diplo- 
matic mission in Guatemala, as this would have 
been too obvious a link between the Guatemalan 
Communists, traitors to their country, and the 
gi-eat Soviet fatherland whose agents they had 
become. Just as the Guatemalan Commimist 
Party did not disclose itself under its true name 
until 1951, preferring the security of a veiled 
operation within other parties, so the Soviet itself 
did not show its hand openly but operated through 
satellite missions, commercial travelers, and its 
own traveling officials, such as the Commercial 
Attache of the Embassy in Mexico City. 



Threat to Guatemala's Neighbors 

The threat of Soviet communism, which is dedi- 
cated to expansion, conquest, and ultimate world 
revolution, was therefore not directed against 
Guatemala alone but to its peaceful and vulner- 
able neighbors. The Guatemalan people were the 
first nation in the hemisphere to suffer Communist 
control, but others were marked for conquest. The 
Guatemalan Govermnent, as a tool of Soviet pol- 
icy, aimed at disruption of the peace of the area 
by cynically maintaining a sustained campaign to 
undennine their governments. 

Your committee has already heard testimony to 
the efl'ect that the principal Communists of Cen- 



November 8, 7954 



693 



tral America had received refuge, aid, and comfort 
in Guatemala. Many of them had even been re- 
warded with government jobs. Thase foreign 
agents of communism were thus able to use Guate- 
mala as a base for their operations against their 
home countries. They were assisted in their sub- 
versive activities by scores of Guatemalan Com- 
munists and many Spanish Communists who were 
given visas to Guatemala during the early years 
of President Arevalo's regime. The increasing 
flow of propaganda material and trained agitators 
from Guatemala into the neighboring countries of 
El Salvador, Honduras, and Nicaragua became so 
overt that each of tliese governments, at various 
times, found it necessary to close their borders to 
Guatemalan travelers and to invoke rigid restric- 
tions on all travel. This conunittee will be inter- 
ested in these samples of Communist propaganda, 
printed in Guatemala and freely circulated in 
Central America. I am glad to submit these 
copies. 

One of the most blatant examples of interven- 
tion by Guatemalan Communists in the affairs of 
neighboring republics was the strike which para- 
lyzed Honduras for 8 weeks last sjoring. The suc- 
cess of their efforts came to startled public 
attention on May 1, 1954, when a general strike 
broke out in tlie nortlieni area of the country and 
continued for a period of 8 weeks. There had been 
no previous labor disturbances in Honduras, no 
negotiations for contracts pending, and no rejec- 
tions of workers' petitions. The duration of the 
strike would have been impossible without sub- 
stantial help from abroad. 

There is ample evidence that the strike was 
planned, instigated, and directed from Guatemala 
and was midoubtedly intended to unseat the Hon- 
duran Government. Help to the strikers was 
channeled through Guatemala and consisted not 
only of guidance and instructions but surely of 
tlie material aid publicly promised by the Com- 
munist-dominated Guatemalan National Federa- 
tion of Labor, for a minimum calculation of the 
cost of the strike, involving as many as 44,000 
workers over a period up to 8 weeks, would indi- 
cate it to be not less than three-quarters of a 
million dollars. No such sums of money were ever 
collected among the strikers in Honduras and 
could only have come from a foreign power. The 
Honduran Government, which had seized a Guate- 
malan military plane wliich flew into the northern 

694 



area of the country without authorization a month 
before the strike, found reason to expel three 
Guatemalan honorary consuls who had been ap- 
pointed to small towns in the strike zone only a 
few months before. The damage to the economy 
of Honduras was very considerable and was clearly 
a part of the Communiet plan to disrupt Central 
America. 



Arms Shipment in May 1954 

The jars and jolts to Guatemala's neighbors in 
Central America through strikes, political agita- 
tion, and subversion were evidences of the growing 
Connnunist threat, but it was during the critical 
period of the spring of 1954 that the Soviet made 
its big stab to solidify its strength in Guatemala. 
This was the shipment of arms on the S. S. Alfhem, 
which came into Puerto Barrios on ^lay 15, 1954.^ 
The cargo manifest was fraudulent, listing as 
glassware and laboratory equipment some 2,000 
tons of modern arms for the Arbenz government, 
packed in more than 15,000 cases. The cargo, 
which was of Czech origin, had left the Communist 
port of Stettin, Poland, about 3 weeks before and 
pursued a zigzag course across the Atlantic, giving 
false destinations three times en route. 

The Guatemalan armed forces were not without 
arms, and their numbers were already at least 
equal and probably superior to the total anned 
forces of the three immediate neighbore, El Sal- 
vador, Honduras, and Nicaragua. The Soviet 
primarily intended to drive a wedge into the 
middle of this continent. The four Central 
American Governments, Honduras, El Salvador, 
Nicaragua, and Costa Rica, all communicated to 
the Department of State their request for joint 
measures against the introduction of further 
armed force into the area. Our Government was 
moving rapidly to present this threat to all mem- 
bers of the Organization of American States, for 
action by the inter-American system, when the 
movement by Col. Castillo Armas in late June 1954 
overthrew the Communist government which had 
acquired the arms. 

How thoroughly the Arbenz goverimient was 
following the dictates of the Soviet Union was 
clearly shown during this crisis in the incident of 
tlie nonaggression pacts. At a moment when the 
alarm nf Guatemala's neighbors was highest over 



' Bulletin of June 7, 1954, p. 873. 

Department of State Bulletin 



the Alfhem sliipment, the Guatemalan Foreign 
Minister ostentatiously sent cables to the Govern- 
ments of Honduras and El Salvador, protesting 
friendship and otl'ering to sign treaties of nonag- 
gression with them. The very term used, "nonag- 
gression {)act,'' was a giveaway of the inspiration 
whence this maneuver came. It is a Soviet term, 
unfamiliar to Central American diplomacy and 
almost unheard of in the relations of our hemi- 
sphere, which hixs a long and honored history of 
peaceful settlement of disputes by the machinery 
set up in our inter- American system. The nonag- 
gression pact idea has repeatedly been used as a 
tactic of deception. Indeed, if we could write an 
accurate dictionary delinition of the term "non- 
aggression pact," it would be "(a) Agreement 
between St^ilin and Hitler on August 23, 1939, just 
before outbreak of World "War II which paved 
way for Nazi attack and was later used to conceal 
preparation for war between Russia and Germany ; 
(b) Any similar agreement, apparently for peace- 
ful purposes but concealing intent to make war.'' 
Guatemala's smaller neighbors were not deceived 
and rejected the invitation, reminding the Guate- 
malan Government that no need for such a pact 
exists between peace-loving neighbors. Indeed, 
Honduras invited Guatemala to show its peaceful 
purpo-ses by ceasing to support the strike in north- 
ern Honduras. 

The Guatemalan Communists also planned 
high-level iniiltration of all Central America, but 
in this adventure their plans were too ambitious 
and failed. 



New Central American Organization 

We in the United States are always so conscious 
of our own mistakes, Mr. Chairman — and I might 
add particularly those mistakes in the fields of 
foreign affairs — that it is rather comforting to 
note that the other side sometimes makes their 
mistakes too. One such incident involved the 
Organization of Central American States, which 
is generally referred to as Odeca. Such an organi- 
zation had been discussed for generations among 
the Central American republics. In 1951 the Com- 
munist-oriented Government of Guatemala, anx- 
ious to extend its influence in Central America, 
seized the initiative and sent proposals to the Gov- 
ernments of El Salvador, Honduras, Nicaragua, 
and Costa Rica that a conference be held to lay 
plans to form such an organization. The confer- 



ence was held at San Salvador, and a charter of 
the organization was adopted. An interim com- 
mittee was set up. A subsequent meeting to draft 
final plans was scheduled in Guatemala in the 
latter part of 1952. 

However, suspicion developed that the Com- 
munists of Guatemala planned to use the new 
organization as an additional vehicle for extend- 
ing their inlluence into the allairs of neighboring 
Central American republics. Shortly before the 
meeting in Guatemala City was to be held, the 
Government of El Salvador became so incensed 
at the activities of Guatemalan Communists agi- 
tating within that country that they closed the 
borders, rounded up more than 1,500 subversive 
suspects — many of them Guatemalan nationals — 
and expelled them from the country. Then the 
Government of El Salvador notified the other 
members of Odeca that it proposed to submit a 
resolution at the conference in Guatemala City 
demanding investigation of communism in Central 
America and the adoption of measures by all five 
Central American countries to counteract this 
menace. 

This boomerang of Communist plans was ex- 
ceedingly embarrassing to the Arbenz government, 
for the organization Arbenz had initiated in an 
eli'ort to extend Communist influence was threaten- 
ing to go into reverse and become a vehicle to 
combat communism. The Arbenz government 
twice postponed the proposed conference in Guate- 
mala City and exerted the strongest diplomatic 
pressure on El Salvador not to submit its proposed 
resolution. When these efforts failed and El Sal- 
vador stood firm in its intent, Guatemala finally 
withdrew from Odeca, on April 1, 1953, brazenly 
charging its neighbors with "aggression." This 
is another typical Soviet tactic, to accuse the peace- 
ful victims of Communist schemes of the very 
crime which the Communist aggressors are about 
to commit against them. 

To attract as much attention as possible, the 
Guatemalan Foreign Minister sent a message to 
the Security Council of the United Nations repeat- 
ing the same charges. He did not, however, ask 
for any action, which was in itself confession that 
the charges lacked proof and that the forum of 
the United Nations was used only for propaganda 
purposes. Since it was obvious that only one 
country, Guatemala, was the source of the Com- 
munist problem in the area, the Arbenz regime 
could not tolerate that its activities against its 



November 8, 1954 



695 



neighbors be placed under the spotlight of an 
international meeting. And it had one other 
equally serious motivation, that the Organization 
of Central American States, a new and valiant 
effort by these small countries themselves to inte- 
grate their economies and lift the living standards 
of their people, should collapse and not become a 
bulwark against Conununist advances in the area. 



Threat to U.S. Security 

I need hardly refer to the menace of this Soviet 
attempt to win Central America as aimed at our 
own vital interests and security; this is self-evi- 
dent, for geography alone supplies the reason. 
Central America lies almost at our southern bor- 
ders, no more than 3 houi"s' flying time by modern 
warplanes from the Gulf ports and even nearer to 
our greatest strategic installation anywhere in the 
world, the Panama Canal. If any part of this area 
should fall under Soviet power, it would shake 
the foundations of our defenses. The Soviets 
know that. They wei'e willing to pay a very high 
price in funds, manpower, organization, propa- 
ganda, and subversive skills to gain a base in 
Guatemala. And we know that the hardheaded, 
practical men of the Kremlin dedicate their best 
efforts on objectives which strike closest to the 
United States. For if we should weaken and suc- 
cumb, the road would lie open to their domination 
of the whole world. 

Thus, the struggle of the Guatemalan people to 
throw off' the Communist control was as much a 
struggle for the safety of Guatemala's neighbors, 
and ourselves, as it was to regain their own 
liberties. 

In conclusion, Mr. Chairman, let me state that 
the menace of communism in Guatemala was 
courageously fouglit by the Guatemalan people 
themselves, always against the superior odds which 
a police state has over the decent, patriotic citizen. 
Connnunist power was broken by the Guatemalans 
alone, and their deeds of heroic sacrifice deserve 
and will always receive the admiration and ap- 
plause of our own people. They fought the battle 
which is the common battle of all free nations 
against Communist oppression, and they won the 
victory themselves. 

President Eisenhower and Secretai-y Dulles have 
botli publicly pledged our supjx^rt to the new 
Government of Col. Castillo Armas and our aid 



to the Guatemalan people. It is my earnest hope 
and confidence that all feasible means to extend 
this aid will be promptly developed, so that Guate- 
mala may resume its place as a prosperous and 
progressive member in the family of free nations. 



U.S. Aid to Guatemala 

Press release 618 dated October 29 

On October 30 Norman Armour, Ambassador to 
Guatemala., delivered the following aide memoire 
to the President of Guatemala, Carlos Castillo 
Armas : 

The American Ambassador informed His Ex- 
cellency that the following aid is being made avail- 
able by the United States to the Government and 
people of Guatemala for the present fiscal year: 
Roosevelt Hospital $500,000; Inter-American 
Highway $1,425,000 ; general purposes $3,200,000 ; 
technical assistance $1,300,000 ; total $6,425,000. 

The Ambassador recalled that the Government 
of Guatemala is to make matching contributions 
of its own towards some of the projects for which 
the aid is to be used and stated that he and the 
officials of the Foa would be pleased to discuss 
promptly with the Government of Guatemala pro- 
cedures for utilization of the aids. 



Current Legislation on Foreign Policy: 
83d Congress, 2d Session 

study of Overseas Administrative Personnel Problems. 
Hearing before a Subcommittee of the House Com- 
mittee on Government Operations. March 16, 1954. 
21 pp. 

Report on Audit of the Institute of Inter-American Af- 
fairs for the Fiscal Year Ended June 30, 1953, with 
Letter of Transmittal from the Acting Comptroller 
General of the United States. H. Doc. 399, May 20, 
1954. 26 pp. 

Review of the United Nations Charter. Hearing before 
a Subcommittee of the Senate Committee on Foreign 
Relations on I'ropDsals To Amend or Otherwise Mod- 
ify Existing International Peace and Security Or- 
ganizations, Including the United Nations. Part 6, 
Des Moines, Iowa, .lune 19, 1954. 156 pp. 

Strategy and Tactics of World Communism. Hearings 
before the Subcommittee To Investigate the Admin- 
istration of the Internal Security Act and Other In- 
ternal Security Laws of the Senate Committee on the 
•Judiciary. Part 3. .July 1 and 8, 1954. 40 pp. 

Return of Confiscated Properly. Hearings before a Sub- 
cominillee of (he Senate Committee on the .Judiciary 
on S. 3423 To Amend the Trading with the Enemy Act. 
July 1 and 2, 1954. 248 p]i. 



696 



Department of State Bulletin 



Soviet Propaganda and International Tension 



by John Moors Cabot 
Amhcuisador to Sweden^ 



In democracies tlie people determine the broad 
lines of foreign policy. Any organization which 
helps to keep the people informed about what is 
going on in other countries is therefore doing 
something very necessary. I applaud the work 
of tho Swedish-American Association of Bor&s 
because it is doing that needed work. 

AVe know that in our generation democracy has 
been challenged both on the right and on the left. 
Those who would destroy democi'acy are forever 
trying to promote misundei-standings within de- 
mocracies and between democracies. As the rep- 
resentative of another democracy, a traditional 
friend of Sweden, I should like to discuss a prob- 
lem which faces all free nations. You will rightly 
recognize what I say as a plea for my country's 
viewpoint. You may well not agree with me, but 
I hope that you will think over the case I present 
carefully. 



"Warmongering Imperialists" 

The biggest newspaper chain in the world is 
not in the United States, although one edition is 
published in New York. Other newspapei-s of 
the chain are published practically all over the 
world ; I believe you have a couple here in Sweden. 
The head office of the chain is in Moscow, and it 
keeps a very tight rein on all of the member news- 
papers. 

Now this newspaper chain talks continually 
about a lot of things we should like to see in this 
world, such as peace and coexistence and better 
living conditions for the masses. It says that all 
these things "would be possible if only the ruling 



' Address made before the Swedish-American Associa- 
tiou at BorSs, Sweden, on Sept. 30. 



circles in tJie United States, together with their 
reactionary stooges in other countries, were not 
greedy, warmongering imperialists. Inciden- 
tally, until recently the chain insisted that among 
the most reactionary of these stooges were the 
Social Democratic parties in Europe, but there has 
apparently been an agonizing — and doubtless 
temporary — reappraisal in this regard. 

This charge of imperialism and warmongering 
seems pretty serious, and it doesn't refer to the 
dead past when the United States and many other 
democracies showed imperialistic tendencies. It 
refers to the recent past and the present. If it were 
justified, the record should show brilliant suc- 
cesses for such a policy backed by our great power 
and wealth. I think when these newspapers charge 
us with imperialism they might explain why over 
the years it has increasingly been the miserable 
failure the actual record shows. 

To the north of us lies Canada, a country of 
immense natural wealth still largely undeveloped 
despite the fabulous progress of recent years. 
Twice in the last 40 years Canada has loyally sent 
her forces to aid the mother country. Great Brit- 
ain, in desperate struggles to preserve freedom in 
Europe. By so doing, Canada clearly exposed a 
.3,000-mile frontier to such imperialist ambitions 
as the ITnited States might manifest. Was it 
strange that Canada didn't send a single regiment 
to the frontier as a precautionary measure in either 
"World War? The curious fact is that, if we have 
our family differences with Canada, I frankly can- 
not imagine either nation worrying about possible 
aggression from the other. 

To the south of the United States is Mexico. 
Our relations with Mexico have not always been 
happy— we fought a war in 1846-48 and have had 
recurrent troubles until recently. 



Movember 8, T954 



697 



We continue to have oui' differences with Mexico, 
but I think an event which I personally witnessed 
is typical of our present relations. In October 
1953 the Presidents of Mexico and the United 
States together dedicated Falcon Dam on the 
Kio Grande — the Mexican-American border. 
Could it be imperialism to build a dam in coopera- 
tion with a neighboring nation when the money 
might so easily have been spent for military ad- 
ventures? Could it be that, despite the pretexts 
an imperialistic nation might have used during 
Mexico's prolonged civil war in 1911-20 and again 
when our oil properties were expropriated in 1938, 
we actually preferred to cooperate with a weaker 
neighbor ? 

In the sparkling Caribbean area, to the south 
of the United States, are a number of small re- 
publics — just as there used to be some small repub- 
lics across the Baltic Sea. Historically, these Car- 
ibbean republias have tended to be poor, weak, 
and disorganized. "Wliat tempting morsels for 
imperialist ambitions! In one, Panama, is our 
greatest strategic asset, the Panama Canal, which 
we hold under a perpetual treaty. Panama has 
no army, yet in 1936 and again in 1953 it asked us 
to revise certain treaty provisions regarding the 
canal which it did not consider fair. We failed to 
use the Panamanian demands as an excuse to gob- 
ble Panama — in fact I doubt that the Panamanians 
would have made the demands if they had had 
certain other neighbors. Instead, we sat down 
with the Panamanians to work out revised agree- 
ments. 

Lest anyone think the governments of the Carib- 
bean republics are stooges of the United States, 
let me mention a couple of personal episodes. In 
May 1953, when I was Assistant Secretary for 
Inter-American Affairs, one Caribbean republic 
put out a story that I was consorting with Com- 
munist agents to overthrow its government. It 
happens the government was badly misinformed, 
but do you recall any case in which any newspaper 
in the chain to which I referred earlier made any 
such accusation against its head officers? 



False Charges in Guatemala 

In 1953 we became increasingly concerned that 
the then Government of Guatemala had suc- 
cumbed to the blandishments of this newspaper 
cliaiii. When I strove mildly to point out the 
danger, tlic chain accused me of favoring the inter- 



ests of the United Fruit Company, which had 
important interests in Guatemala, because I was a 
big stockholder in it. Incidentally, the Swedish 
newspapers in the chain repeat this story from 
time to time; you will probably find it in tomor- 
row's editions if you look. The fact is that I have 
never had a share of United Fruit stock in my life, 
and I have no other personal reason to favor the 
United Fruit. The same accusation has been made 
with equal untruth about Secretary Dulles. All 
of this was merely a part of the campaign the 
Communist marionettes in Guatemala put on 
against the United States ; I really don't recall any 
case in history where a small nation has put on 
such a provocative campaign against a powerful 
neighbor, whether or not the neighbor was im- 
perialistic. Fortunately, the people of Guatemala 
have now taken care of the situation there. 

In the Western Hemisphere our sister republics 
are going through a period of amazing, fruitful 
development — a period similar to that through 
which the United States went in the past century. 
Even today, although their combined military 
strength is a small fraction of ours, their economic 
resources are already substantial and are develop- 
ing rapidly. "What a luscious morsel for im- 
perialist greed ! 

How did the United States react to these un- 
paralleled opportunities? In 1823 we proclaimed 
that we would not tolerate any effort of any Euro- 
pean power to oppress or control the destiny of 
any American republic which had declared its in- 
dependence. During the 19th century a series of 
attempts were made to break this Monroe Doc- 
trine, particularly when we were distracted, as 
during our Civil War. We thwarted them — at 
times by a show of militai'y force — and every 
American nation which was independent in 1823 
is independent today. 



Inter-American Cooperation 

Far from seeking to dominate our sister re- 
publics, we have been seeking in a series of inter- 
American conferences since 1889 to build up a co- 
operative relationship with them. If the spirit of 
our relations is similar to that existing between 
the Scandinavian nations, I ask you to remember 
that the material factors — the military and eco- 
nomic power, the traditions, the language, and 
organizational stability — were very disparate in 
America. Europeans sometimes forget how much 



698 



Department of Stale Bulletin 



oiii- Aiiieiiiaii experience in cooperative rcliition- 
sliips contributed to tlie United Nations, and liow 
the basic coiu'ei)t of Nato, that an attack on one 
is an attark on all, was llrst worked ont by the 
AnuM-ican Rc[)nblics. In the liglit of our lon<; 
and honorable record of settlin*; disputes in the 
Americas by peaceful means, it was really a bit 
annoyinu; in the recent case of Guatemala to have 
inter-American action stopped by a veto in the 
Security Council, and then to have not only the 
chain of newspapers to which I have referred, 
but also many of our Eurojjean friends, lecture 
us on our failure to protect the Guatemalan Gov- 
ernment which had (lime everythinj; in its power 
to harm us. 

But for Europeans, American problems seem 
far away. Let us consider wliat tlic United States 
might have done in the Old World if it had acted 
in the imperialist tradition. 

From 191-1: to 1918 all of the great powers in 
Europe were engaged in a desperate war. To 
secure allies, eacli side dangled juicy offers before 
other nations, and a series of secret ti'eaties were 
written describing liow the booty was to be di- 
vided even before it was secured. In 1917 we 
entered the war. ^Vhat did we demand of our 
prospective allies as the price of our entry? 
Nothing. Having contributed the winning mar- 
gin in blood and treasure to our weary allies, 
what did we secure in the peace settlement? For 
ourselves, nothing — not an inch of territory, not 
even an economic asset. We tried at the peace 
table to uphold the principle that people have the 
right to determine under what government they 
wish to live. By the mandate system, we tried 
to circumscribe the old colonialism. We let others 
t^ike these mandates, and took none ourselves — 
strange conduct for an allegedly imperialist 
nation. 

At the end of W^oi'kl War I we had two million 
soldiers in Europe, and our war production was 
just beginning to roll. For years after the war 
Europe lay prostrate, requiring our help simply 
to live. Machiavelli would have rubbed his hands. 
We, however, disbanded our army, sponsored a 
series of disarmament agi'eements in which we 
made the greater sacrifices, and helped the Euro- 
pean nations regain their feet. Strange to say, 
we haven't been hearing very much from the news- 
paper chain recently about the massive aid we ex- 
tended to Russia to relieve famines on more than 
one occasion between the wars. 



Lend-Lease in World War II 

Despite the proverb that opportunity kiK>cks 
but onco at any man's door, the KSe^ond World 
War gave us an even better opportunity to pro- 
mote our alleged imperialistic purposes. ^V^ult 
did we do? We provided England, Russia, and 
other nations lighting aggression enormous (pian- 
tities of gCKKls to help them in tlieir fight. We 
took such risks that we were ourselves attacked. 
To Russia alone we sent over $10 billion of lend- 
lease equipment. What did we demand in return 
from the luird-presscd nations which we were aid- 
ing? Nothing. If the United States was an im- 
perialist nation, its diplomacy was singularly 
inept. 

At the end of World War II we again had a 
powerful army in Europe and incomparably the 
gi-e4itest fleet and air force in the world. We 
alone had the atom bomb. The Old World was 
again prostrate after 6 years of war. If ever a 
nation was in a position to promote imperialistic 
purposes, it wiis the United States in 1945. 

What did we do? We again disbanded our 
army and air force and put our fleet in mothballs. 
We shipped hundreds of millions of dollars of 
relief supplies through Unrra to Soviet Russia 
and other parts of Europe. We offered to share 
tlie secret of the atom bomb with other nations in 
return for their agreement that it should be placed 
under secure international control. If you look in 
any edition of the oft-mentioned newspaper chain, 
you might not realize that we were the first to pro- 
pose a means of stopping atomic warfare, when 
we had the bomb and no one else did. At the same 
time we gave full independence to the Philippines 
and we offered it to Puerto Rico. 

Marshall Plan Aid 

The postwar prostration of Europe was such 
that it became doubtful that Europe could recover 
with its own resources. We again offered our help 
through the Marshall plan — and the offer origi- 
nally included Soviet Russia, which rejected it. 
In the piust 40 years we have poured some $75 bil- 
lion into Europe. We are supposed — and you 
don't have to read the newspaper chain to hear 
this — to be very materialistic, always chasing dol- 
lars. If one can get dollars by giving them away, 
woulcbi't it be nice to know how it is done? This 
aid is also said to have promoted our economic 
imperialism. If so, we've got an awfully bad bar- 



November 8, 1954 



699 



gain for what we have poured out — our total for- 
eign investments are worth only a fraction as much 
as the aid, and we have secured no privileged mar- 
kets or other economic concessions in return. We 
do think that what helps our friends generally 
helps us, but that is another matter. 

Now I am sure I did not need to go into such 
detail to convince you that this newspaper chain's 
picture is — shall we say? — a bit distorted. Few 
people in Sweden or the United States take what 
it says seriously. But the shrill charges the news- 
paper chain wearisomely repeats have a curious 
way of turning up in the thinking of people who 
haven't the slightest sympathy with what the 
chain stands for. They turn up in the idea that 
this is just another struggle for power between 
two colossi, which is of concern to other countries 
primarily because the two may go to war and in- 
volve everyone else — this, although the record 
shows that our direct interests have seldom been 
involved in the cold war ; that, as in World War II, 
we became involved because we felt that if other 
nations fell, our own security would ultimately 
be affected. 

They turn up in the criticisms so often heard of 
foreign statesmen who in their own country's in- 
terest do or say something favorable for the 
United States. They turn up in the criticism of 
our atomic bomb tests, whereas those of others go 
unmentioned. Apparently our atomic bombs are 
even the only ones that affect the weather. 

They turn up in attacks upon our conviction that 
the Chinese Communist regime is not peace lov- 
ing — and developments in Korea did not silence 
them. They tuna up in attacks on our efforts to 
promote an integrated system of defense forces in 
Western Europe, despite the fact that such forces 
would defend European homes rather than Amer- 
ican interests. They turn up in the idea that it is 
provocative to sign a purely defensive pact in 
Southeast Asia against a clear menace of aggres- 
sion. 

They turn up particularly in wildly exaggerated 
ideas that any foreign nation which is or might be 
friendly in the face of common peril is untrust- 
worthy, weak, greedy, corrupt, reactionary, vacil- 



lating, rash, imperialistic, and anything else which 
may make it difficult for nations to cooperate for 
the common good. 

This newspaper chain works skillfully on our 
own democratic mentalities, which tend to believe 
that where there is smoke there must be fire ; that 
where there is a dispute, there must be right and 
wrong on both sides ; that the truth must always 
be between extremes. 'Wlien the newspaper chain 
makes up a stoi-y out of whole cloth and only ten 
percent of it is believed — or only ten percent of 
the people believe it — it is still that much ahead. 
When a democratic political leader or editor feels 
that he must attack a friendly foreign nation to 
show how objective he is, the newspaper chain has 
again profited. 

I hope you will think deeply of the factors which 
are producing international misunderstanding 
today. I know that you here in Sweden justly 
pride yourselves on your ability to ascertain, amid 
all the sound and iuiy, what is really going on, but 
that is a quality which democratic nations need 
more than ever today. I hope particularly that 
all free nations will try to be under-standing of 
each other and of each other's motives. The most 
powerful newspaper chain in the world is work- 
ing overtime to sow suspicion, distrust, and dis- 
agreement between free nations. If those nations 
listen to this siren's voice and quarrel among 
themselves, it will be at sorry day for freedom — 
everywhere. 



Nuclear Explosions in U. S. S. R. 

The Atomic Energy Commission announced on 
October 26 that there had been a series of detona- 
tions of nuclear explosives in Soviet territory. 
This series began in mid-September and has con- 
tinued at intervals to the present. As is gener- 
ally the case with nuclear detonations, these tests 
have resulted in some widespread fall-out of 
radioactive material, but insignificantly in the 
United States. 



700 



Department of Slate Bulletin 



II 



The United Nations and World Security 



hy David McK. Key 

Assistant Secretaiy for Internatianal Organization Affairs '■ 



As we here in Wiishington join today witli more 
than 7,000 other American communities and with 
the peoples of 80 nations in celebrating United 
Nations Day, we have a feeling of special close- 
ness to the organization that was conceived in the 
dark days of the war. For it was in this city, in 
the seclusion and beauty of Dumbarton Oaks, that 
the Great Powers in 194-i committed themselves 
to the creation of the world organization to be. 
The representatives of those powere recognized 
the signs of victory through the clouds of war, 
and they realized that the responsibility for plan- 
ning an organization for the maintenance of peace 
was in tlieir hands. Tliey acted accordingly. 
Had these men been unable to agree among them- 
selves at Dumbarton Oaks, there would have been 
no basis for the founding conference to be held 
in San Francisco the following year. 

But if we take pride in our special tie with the 
United Nations, let us be even more grateful that 
it has extended round the world. Let us be grate- 
ful that it binds us with many other countries, a 
number of whose diplomatic representatives are 
present here to share with us this celebration of 
the ninth anniversary of the coming into force of 
the United Nations Charter. 

In addition to welcoming these distinguished 
diplomatic representatives, we are honored in 
having with us Mr. Morehead Patterson, National 
Chairman of the United States Committee for 
United Nations Day. I also wish to congratu- 
late Mr. Edgar Morris, Chairman of the "Wash- 
ington Committee, and thank him and the other 
members of the Committee for their able efforts in 
organizing this celebration. And to all of you I 



' Remarks made at the Washington, D. C, United Na- 
tions Day observance on Oct. 24. 



am privileged to bring the warm greetings of the 
Secretary of State. 

I think we would do well to consider for a few 
minutes why we assemble here to observe United 
Nations Day. What is the significance of this 
public gathering and of countless others like it 
in every country of the world ? 

In the first place, we pay tribute to man's suc- 
cessful efforts to agree to organize world society 
against war and for the creation of conditions of 
peace and well-being. In the second place, we 
mark 9 years of growth and progress of the organi- 
zation established to accomplish these purposes 
and its evolution toward a more effective instru- 
ment of international security and world order. 
In the third place, we indicate our faith in the 
future of the United Nations and our determina- 
tion to make it serve ever better the interests of 
peace. 

Purpose of United Nations Day 

The United Nations can have little effect and 
influence in the world beyond the faith and loyalty 
which its member nations and the citizens of these 
member nations give to it. Therefore, it is most 
fitting that one day a year be set aside for such 
observances as these in which we can reaffirm the 
unity of mankind's need for the United Nations. 
This common agreement and support is too often 
lost sight of during the day-to-day operations of 
the organization when the task of reconciling op- 
posing views of member states on crucial world 
issues sometimes makes it appear that the United 
Nations is itself the cause of strife and disunity. 

I think it is correct to say that the importance 
which the public attaches to the deliberations, 
recommendations, and actions of the United Na- 



November 8, 1954 



701 



United Nations Day 

statement iy Secretary Dulles ' 

Sunday [October 24] the world is celebrating the 
ninth anniversary of the coming into force of the 
charter of the United Nations. The 60 members of 
the United Nations, and several nonraember nations, 
are observing this anniversary. 

In the United States alone, 7,000 cities, towns, 
and villages are holding celebrations. 

A spontaneous bond of tliis kind is symbolic of 
the vitality of the United Nations. It can only arise 
from a deep conviction that the United Nations is a 
living force throughout the world. 

The charter is a great landmark in the under- 
standing of the nature of peace. It recognizes that 
peace is far from being a passive concept. It recog- 
nizes that peace is a call to action. To attain it 
requires faith and comradeship among the nations, 
great courage and great sacrifice. 

That is the spirit of the charter, and that is the 
spirit in which peace must be sought without ceas- 
ing. 

I believe that the peace we all long for is an 
attainable goal. I believe that the United Nations 
can greatly help to realize that dream of peace. 
Thus the United Nation.s justifies our faith and (nir 
support. 



' Issued on Oct. 23 (press release 603 dated Oct. 
22). 



tions is yearly becomine; greater. As the problems 
facing the world community have become more 
critical, owing in large part to developments in 
atomic energy, the world has looked more and 
more to the United Nations for security and for 
long-range solutions designed to ease international 
tensions. This public concern and impatience is 
basically a healthy sign and an indication of the 
vitality of tlie organization. If during its llrst 
9 years the United Nations had become nothing 
more than a figurehead or .symbol of man's good 
intentions, public support and interest would long 
ago have abandoned it. The United Nations lias, 
however, increased in stature during these years 
and by its action has earned increased public 
confidence. 

A record number of communities in the United 
States are observing United Nations Day this year. 
In this connection, it is gratifying to note that an 
analysis of United States public opinion polls and 
other indices of public sentiment indicate that 



never in its history has the United Nations enjoyed 
the support of so large a proportion of the Ameri- 
can public. 



Value of Criticism 

Perhaps I should also observe that there has at 
the same time been much outspoken and sometimes 
bitter criticism of the United Nations. This criti- 
cism does not cause me undue concern. In fact, 
criticism should be welcome since no organization 
or system which depends for its life on the under- 
standing and support of the people can develop 
in a healthy and vigorous manner without the 
warnings and stimulation of vigorous opposition 
and criticism. If this is a sign of vitality, and I 
believe it is, we have no need to fear that the 
United Nations is in danger because of public 
criticism. On the contrary, we should be concerned 
if there were an absence of criticism, which would 
indicate public apathy. 

Let us rededicate ourselves here to the basic 
proposition of the founders of the United Na- 
tions — namely, "to save succeeding generations 
from the scourge of war." Only 4 days ago Presi- 
dent Eisenhower, underlining the urgency which 
faces us in turning this proposition into a work- 
able plan, stated that science has brought the world 
to a point where war does not jsresent the possibil- 
ity of defeat or victory but only the alternative in 
degi'ees of destruction. In other words, it is no 
longer the "scourge of war" but annihilation by 
war which we face. The world caiuiot again haz- 
ard recourse to war as a shortcut to peace. Our 
only rational alternative is to use peaceful means 
to establish international peace. This must be 
done by and through the United Nations, which 
the Presiden