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VOLUME XXXII: Numbers 810-835 

January 3— June 27, 1955 


Volume XXXII: Numbers 810-835, January 3-June 27, 1955 

Abs, Hermann J., German representative at conversations 

on war claims, 267, 290, 438 
Ad Boo Committee on Restrictive Business Practices, 665 
Adams, President John Quincy, quoted, on Congress of 

Panama, 728 
Adenauer. Konrad, Chancellor of the German Federal 
Eepublic, visit to U.S. and joint statement vcith 
President Eisenhower, 1033 
Advertising Club of New York, award to Secretary Dulles, 

551, 552 
Advisory Committee on Energy Supplies and Resources 

Policy, report to the President, 487 
Afghanistan, U.S. development assistance, including 
loan for Helmand River Valley development, 339, 347 
Africa : 
Communism, pressure on, article (Kalljarvi), 808 
Independence of nations of, discussion, 316 
Mutual security program in, 338, 350, 713 
U.S. grants and credits for development assistance to 

territories of Western Europe, 339 
U.S. policy (1954) in Near East, South Asia, and 

article (Howard), 256, 301, 338 
Visiting missions of Trusteeship Council, statements, 
67, 316, 451, 703 
Afro-Asian Conference, 461 
Aggression, collective action against in Korea (1950), 6, 8, 

292, 378, 420, 769 
Agricultural delegations, exchange of notes between U.S. 

and Soviet Union, 932, 970 
Agricultural research, cooperative project with Costa Rica, 

agreement (1954) amending agreement, 545 
Agricultural surpluses (see also Agricultural Trade De- 
velopment and Assistance Act) : 
Agencies active in surplus disposal programs, 202 
Agreements for sale, with Argentina, 767, 786; Chile, 

281, 313: Finland, 814, 1020; Germany, for West 
Berlin, 720; Israel, 815, 826; Italy, 1020; Japan, 
204, 957, 1020; Korea, 1006, 1059; Pakistan, 204, 

282, (text) 311; Peru, 313, 398; Spain, 767, 826; 
Turkey, 203, 786, 814, 826; Yugoslavia, 138, 204, 746 

Disposal of, relation to foreign policy, 201, 202, 880 

Disposition of, to avoid disruption of world market, 
resolution (GATT), 579 

Domestic donations, 203, 205 

Emergency assistance extended to Bolivia, 308, 726; 
Danube Basin, peoples in flooded area, 138, 419, 
726, 847; Haiti, 702, 726; Libya, 351, 726; Nepal, 
348, 726 ; Pakistan, 157, 349, 726 ; Yugoslavia, 138, 
726, 847 

FOA, Latin American meeting at Buenos Aires, 277, 278 

Agricultural surpluses — Continued 
FOA, three programs, outlined, 725 
Foreign donations, 205 

Interagency Committee on Agricultural Surplus Dis- 
posal, establishment, 201 
Value of commodities moved, 203, 205, 714, 718, 725 
Agricultural Trade Development and Assistance Act (Pub- 
lic Law 480) ; 
Administration of, not to disturb world markets, state- 
ments (Eisenhower), 201, 202, 880, 881 
Farm surpluses. See Agricultural surpluses. 
Messages (Elsenhower) to Congress, 169, 200, 714 
Text of agreement with Pakistan under, 311 
Trade, including barter, with Soviet bloc prohibited, 

opinion of Assistant Attorney General, 569 
Utilization of foreign currency accruing from sale of 
agricultural surpluses, 169, 201, 357, 714 
Agriculture, cooperative programs, agreements with Bo- 
livia, 746, 866 ; Chile, 982 ; Costa Rica, 453, 906 ; Ecua- 
dor, 441, 1059; El Salvador, 630, 666; Haiti, 366, 826; 
Honduras, 944; Paraguay, 906; Peru, 786; Yugo- 
slavia, 138 
Agriculture, Department of, responsibility for tour of 

Soviet farm delegation, 933 
Air defense technical center, agreement with Netherlands 

(1954), 157, 398 
Air Force mission agreement with Bolivia (1941), exten- 
sion (1954), 545 
Air training programs, in NATO countries, 510 
Air transport agreements with : 

U. K. (1946), discussions on authorization for polar 

routes, 998 
Venezuela, exchange of notes (1954) amending agree- 
ment (1953), 112 
Air transport services agreement (1946) with India, 

terminated, 157 
Aircraft (see also Aviation) ; 
Attack by North Korean planes on U.N. Command plane 

over Yellow Sea, 426 
Certificates of airworthiness, agreements effected with 
Denmark (1954), 74; Italy (1954; 1955), 313; South 
Africa, Union of (1954; 1955), 630; Sweden (1954), 
Certificates of airworthiness, agreements terminated 
with Denmark (1934), 74; Italy (1931), termination 
of Art. 9, 313; South Africa, Union of (1931), 630; 
Sweden (1933), 158 
Chinese Communist attack on sabre jets of U.N. Com- 
mand, protest, 891 

Index, January to June 1955 


Aircraft— Coniliiui'd 

Krcucb airlift for refunds from North \ let-Nam, ^i.6. 

International aerial iwtrol by OAS during conflict in 

CoKla Kk-a, ISO, 182. 270 
OAS. memlH-rs culled upou to offer aircraft for observa- 
tion fllcbts In ivntrul America. 131 
D.a case In International Court of Justice against 

Cwcbosloviik destruction of aircraft. 648 
U.S. Bale to Costa Kica witli concurrence of OAS, 181, 
Alrllelds, additional, NATO project, 89 
All'iiiilu : 

F..rc«'d latK)r in, 105. 108 
Treaties, agreements, etc. : 
Uenoi-lde (11M8). accession, 906 
I'nlverwil |M)stal convention (1952), ratification. 545 
r.S. offer of food to and Albanian rejection, 486, 487 
Aldrlch, Wlntbrop W., Ambassador to Great Britain, ad- 
dresses : 
North Atlantic community, 503 
U.S. trade. .389 
Allen. George V. : 
Conflrmatioo as Assistant Secretary of State, 282 
Stjitcnicnls as Ambassador to India before committee 
of Ciiiigress. 349 
Alliance, political cooperation, and mutual assistance be- 
tween <!reece. Turkey, and Yugoslavia, pact (1953; 
iaM),339, 342. 839 
Allied High Commission in Germany : 

I<; FarlH-iilndustrie AG. deconcentration of. 396 
I'roclumntiiin nbolisblng. 791 
Allle<l Military Government. Trieste, relinquishment of 

lone and llnal report. 400 
Allliwin. John M.. confirmation as U.S. Representative to 

ECAFE. 630 
American colleges, contracts for projects in education in 

Tuklstan. Ethiopia, and Liberia. .348. .•J.'jO, 721 
American Farm Itureau Federation, part in tecliiiical co- 

operatbin iirogram, 721 
"American Studies": 
• "onference on to be held at Oxford University. 1039 
Subjrrt of proji-cts under exchange program and of 
courses In foreign universities. 383 
Anflo-Egjptlan Sadan, convention of World Meteorologi- 
cal Organization, extension to. 866 
U.S. expedition to establish bases, in connection with 

CSenphyslcal Year, 644 
U.S. Inrltation to listed nations to designate observers 

Antitniiit pollclefi and foreign trade, statement (Kali- 

Jarvl) . before mmmlttee of Congress, 974 
Approprlntbrnn. State Department (1930-.",), table. 541 
Aqthn. Golf of. complaint by Israel of Egyptian inter- 

frrpnr«> with whipping. 305 
Arab rpruic«<>« from Palestine: 

Nomt-r Hnd r<,n'llH.m. .306, ann. 760 

'"■>■' '"on or comiH-nsation. 25. 20, 27. 28. 

C"* . ... "1)1.300.659.600 

l-NU W A^ Her inlted Nntlons Ucllef and Works Agencv 
for Palntlnc UefoKeea 


Arab States : 
Address on Palestine problem (Byroade), 301 
Defense provision respecting, in Anglo-Egyptian agree- 
ment (1954), 261 
Expansionist Zionism, fear of, 302 
ILO, interest in, 7(>4 

Israel-Jordan armistice agreement (1949), 303, 304 
Jordan Valley, plan for sharing water resources with 

Israel. 346, 765 
Peace with Israel. U.S. attitude, 93, 301, 303 
Poverty major social problem, its causes, 760 
Tensions with Israel, 567, 568, 712, 713, 760 
Treaty of joint defense between (1950) , 261 
Tripartite declaration by U.S., U.K.. and France, Arab 

doubt of ability to fulfill, 302 
U.S. Ambassador to Israel, protest against presentation 

of credentials at Jerusalem, 305 
U.S. technical and economic aid, 339, 345, 346, 347, 722. 
Arctic Maid, U.S. flag fishing vessel, seized by Ecuador, 

Argentina : 

Claim to extended territorial waters, 935, 939 
Treaties, agreements, etc. : 
Agricultural surpluses, with U.S. (1955) , 767, 786 
Atomic energy, agreement with U.S. (1955) for coop- 
eration in research in peaceful uses of, 101 8re 
Children, convention fixing age for employment at sea 

(1936), ratification, 746 
Masters and oflieers on merchant ships, convention on 
minimum requirement of professional capacity 
(1936), ratification, 746 
Universal postal convention (1952), ratification, 826 
Argonne National Laboratory, School of Nuclear Science 

and Engineering, 421, 553, 615, 691, 804 
Armaments control. See Disarmament 
Armed Forces Assistance to Korea, 299 
Armour, Norman, confirmation as Ambassador to Guate- 
mala, 113 
Arms, traffic in. history of control by Office of Munitions 

Control, Department of State, 542, 884 
Arms and ammunition, statement (Dulles) on Communist 

shipment from Stettin to Guatemala, 217 
Armstrong, Willis C, designation in State Department, 282 
Army, Department of the, economic aid to Korea, 296 
Asia («ce also Far East) : 

China and the stakes in, article (Jenkins) , 3 
Communism, economic strength a deterrent to, 912 
Communism, pressure on Asia, article (Kalijarvi), 808 
("on.sultative Committee on Economic Development in 
South and Southeast Asia, third annual report, 16 
Economic and defensive aid. statements (Eisenhower). 

695. 712, 715, 1003 
Economic development, U.S. aid in, address (Murphy), 

835. 840 
Food production, rise in, 771 
Mutual Security Program, emphasis on Asia, 854, 855, 

Report to Nation (Dulles) after visiting seven Asian 

governments, 4.''i9 
U.S. defense commitments, statement (Dulles), 526 
U.S. oflicial relations with nations of, increase, 837 

Department of State BvUeiin 

ia — Continued 

U.S. policy in, statements (Dulles), 327, 676, 855, 872 

U.S. Policy in Near East, South Asia, and Africa (1954), 

article (Howard), 2-;6, 301, 338 
;ia, free, and Southwest Pacific, proportion of total 
world population and of strategic materials, 719, 771 
;ia, South and Southeast, third annual report of Con- 
sultative Committee on Economic Development in, 16 
;ian Economic Development, President's Fund for, 712, 

713, 912 
omic energy (see also Atomic Energy Commission; 

Atoms-for-peace) : 
Agreement with Turkey (1955) for cooperation concern- 
L ing civil uses of, signature and entry into force, 

I 865, 1020 

Agreements (1955) for cooperation in research in peace- 
ful uses of, initialed with Argentina, Denmark, 
Israel, Italy, Lebanon, Spain, and Switzerland, 
lOlSn ; Brazil and Colombia, 1018 
Civil uses. See peaceful uses, infra 
Cooperation of U.S. agencies with parties to NAT re- 
garding atomic information, text of draft agree- 
ment, 686, 687 
" Egyptian scientists to study in U.S. the peaceful uses 
of, 199 
Human problems of the nuclear age, address (Eisenhow- 
er), 1027 
Italian Prime Minister and Secretary Dulles, review of 

cooperation in peaceful uses, 615 
Moscow propaganda belittling program for peaceful 

uses, 434, 694 
New plants in operation, 164, 165 

Peaceful uses, addresses and statements on: (Dulles, 
at Bangkok), 372, 421; (Eisenhower, budget mes- 
sage), 164, 165; (Key), 336; (Patterson), 5.53, 690 
School of Nuclear Science and Engineering, opening 

of, 421, 5.53, 615, 691, 804 
Soviet offer to share knowledge of, statement (Straus), 

Submarines, atomic-powered, appropriations in budget 

message (Eisenhower), 165 
U.S. and U.K. offers of fissionable material for program 
of peaceful uses of, 272, 336, 467 
itomic Energy, International Conference on Peaceful Uses 
Advisory Committee, meetings, 272, 314, 336; second 

session, 861, 1016 
Announcements, 315, 444 
List of nations invited, 450 

Statements by U.S. representative (Rabi) on objec- 
tives, 234, 314 
Uomic Energy, Joint Congressional Committee on : 
Naming of panel to measure impact of atomic power 

on U.S. life, 692 
Proposed agreement for cooperation of U.S. agencies 
with parties to NAT regarding atomic information, 
686, 687 
itomic Energy Act (1954), provisions respecting inter- 
national cooperation, and bilateral agreements, 690, 
itomic Energy Agency, International : 
Proceedings to devise methods to serve peace, 421, 692, 

Index, January to June 1955 

Atomic Energy Agency, International — Continued 
Proposal (Eisenhower), 336, 1028 
Recommendation, General Assembly, 272, 421 
Atomic Energy Commission, U.S. : 
Libraries on the atom, distribution of, 692 
Research reactors, construction for sale abroad, atti- 
tude, 690 
School of Nuclear Science, at Argonne Laboratory of, 
421, 553, 615, 691, 804 
Atomic information for mutual defense purposes, signa- 
ture of agreements with Canada and with U.K., 1059, 
Atomic weapons : 

Destructive power, deterrent to aggression, 327, 328 
Gradual replacement of conventional, 13 
Atoms-for-peace, proposal (1953) by President Eisen- 
hower : 
Application to African trust territories, statement 

(Sears), 705 
General Assembly, endorsement, 272, 421, 460, 804 
Research reactors, proposal to offer to free nations, 
690, 1028 
Attorney General's National Committee to Study the Anti- 
trust Laws, report by, including section on foreign 
commerce, 977 
Attorney General's Office, opinion of Assistant Attorney 
General on trade, including barter, with Soviet bloc 
under Agricultural Trade Development and Assist- 
ance Act (1954), 569 
Auerbach, Frank L., address on immigration, 1047 
Australia : 

Investment of foreign capital, results, 20 
Loan from World Bank, 562 

Prime Minister Menzies, visit to Washington and ad- 
dress before Congress, 295, 560 
Treaties, asreements, etc. : 
Automotive traffic (1949), accession, 37 
German external debts (1953), notification by Aus- 
tralia of extension to territories, 281 
Manila Pact (1954), communique and statement by 
Council meeting of signatories, and entry into force, 
371, 398 
Mutual defense, with U.S. and New Zealand, 80, 129, 

328, 377, 459, 524, 954, 1000 
Opium protocol (1953), accession applicable to listed 
territories, 398 
Austria : 
Map, 920 

Neutrality, plans respecting, 1010, 1015 
Securities, legislation requiring revalidation, 230 
Treaties, agreements, etc. : 

Educational exchange, with U.S., under Fulbrlght 

Act, 1019 
State treaty : 
Austrian-Soviet communique and memorandum, 734, 

Communique by the four Ambassadors, 833 
Exchange of notes, U.S. and Soviet Union, and U.S. 

statement, 733, 734 
Molotov, V. M., statement, 735 

Negotiations, 727, 754, 805, 832, 873, 875, 1008, 1013 
Signature and statements (Dulles; Eisenhower), 
873, 906, 911, 914, 916 


Aimtrla— Continued 
Tn-atl"-". nicrwnH'ntji, etc. — Continued 
Statf treaty— t^'ontinued 
Text. l»m 

Trniismlttnl to Senate, 1007 

Triitfirtlte declaration. V.S., U.K., France, WT, 733 
r .S. ratlllcatloD, 1007n 
World MetiH>ri>ln^Ual Organization convention, acces- 
Kton, 453 
U.S. c«-<>ni.mlc aid, 883 
Automiitire tralllc. convention (1049), accession by Aus- 
tralia. 37 
Aviation {nrr alto Aircraft) : 
Air loBlstlcs Hjsfeni. International considerations, arti- 
cle ( Burr! np-r), 045 
Civil aviation talks, U.S. and U.K.. including polar 

routes, 997 
Convention (lOin)), ratification by Union of South 

Africa, lucludlnK South West Africa. 702 
Convention on International civil (1944), adherence by 

Laos. 105N 
Convention on International civil, protocols amending 
with respect to sessions and seat, list of ratifica- 
tions, 545 
Aviation Divlsiiin. 49th I".S.. remarks of General Steven- 
son c'onimandin;.', exchange of aidc-mimoire by U.S. 
and Soviet Union, 137 
Aviators, release by Communist ('hinji of four U.S. airmen, 

BalancinK the books for W.'Vi, statement (Dulles), 43 
Balkan Alliance between Greece, Yugoslavia, and Turkey 

( IlCk-J ; llt.Vl). a39. .'ML'. 839 
Baltic iiiuntries. anniversary, statement (Dulles), de- 
ploring loss of Independence, 337 
BandunK conference of Asian-African countries : 
Condemnations of communism, 832. 837, 838 
Statements (Chou En-lal) on peace, 738, 7.59, 800, 835, 

Statements (Rlsenbower; Dulles) on influence for 
peace. ItT.S. IZA. "."«. 757. 999 
Bangkok conference. Nrc unilcr Manila Tact 
BorlKuir. Walworth. US. representative at conversations 

on tiernian claims, 2(17, 2JK), 438 
Bnrrlnk'er. J. I'aul. Dlre<tor of Office of Transport and 
Air loRlHtlcH Mystem. International considerations, ar- 
ticle, fti.-, 

Htntenient U-fore committee of Congress recommending 
ratlllciiiioii of International telecommunication con- 
vention (lft.'.2). 442 
Barter : 

V"r|.ni|i„rel Trade I),.v,. ,„,.„t and Assistance Act 

<1"M). prohibition of with Soviet bloc, opinion 
from Attorney (ienerai's Offl.e. 50!) 

Hnrplii. n«Tlctiltnral commodities, exchange for specl- 
n«| nrn-n, le^nl authority. 200 
IUm<ii In nlllnl ti-rrltorlctt: 

fWmnny. trmiy. i,„ii,ii„k materials for U.S. military, 
air. and nnvol Uni's |n Spain. .198 

Libya. baiM< aKrec^pnt ( 105 1 ) , X<\ 

Valor of. 70B 


Bayar, Celal, President of Turkey, visit to U.S. and 

tribute to U.S., 256, 339 
Beam, Jacob D., designation in State Department, 630 
Beaulac, Willard L., Ambassador to Chile, address on tech- 
nical cooperation, 964 
Bedell. Dr. Ralph Clairon, Secretary-General of Sontl 

Pacific Commission. 423 
Beirut, American University of, 765, 766 
Belgium (see also Belgo-Lusembourg Economic Union) : 
Coal imports from outside European Coal and Steel 

Community, 496 
Ruanda-Urundl, report on Belgian administration, 7W 
Treaties, agreements, etc. : 
Aviation, international civil (1944), protocols amend 

ing, ratification. 545 
Disposal of excess projjerty furnished in connectloi 
with mutual defense assistance program with U.S 
(1953), 498 
Double taxation, avoidance of, convention with U.S 

(1954), 498 
Drugs, protocol terminating Brussels agreements foi 
unification of formulas for potent drugs, ratification 
Mutual defense assistance agreement (1950) witl 

U.S., agreement (1955) amending, 866 
North Atlantic Treaty, accession of Germany (1954) 

acceptance, 746 
NATO, status of, national representatives and stafl 
(1951), ratification, 453 
Belgo-Luxembourg Economic Union, agreement on tarifi 
concessions between U.S., Netherlands, and, 1053 
(text) 1055, 1059 
Bicycles, imports of, letter (Eisenhower) to U.S. Tarifl 

Commission asking for further data. 1003. 1004 
Biological Sciences, 12th General Assembly of Interna- 
tional Union of, 629 
Bipartisanship in foreign policy, statements (Dulles), 287, 

328, 995 
Bissonnette, Rev. Georges, American priest, expulsion 

from Soviet Union, 424 
Board of Review (Germany), appointment of U.S. mem- 
ber, 611 
Bohan, Merwin L., 366 
Bolivia : 
FOA. study of means to reclaim unpopulated lowlands, 

Treaties, agreements, etc. : 

Air force mission agreement (1941). with U.S., ex- 
tension (1954), 545 
Cooperative programs, with U.S.. in agriculture, edu- 
cation, and health (1955). 746, 866 
U.S. aid in agricultural surpluses and in development 

and emergency assistance, 308, 726 
U.S. Ambassador (Drew), confirmation. 113 
Ronbright, James C. H., confirmed as Ambassador to Por- 
tugal. 246 
Bonds. German dollar, report of Validation Board, 139 
Bonsai, Philip W., confirmed as Ambassador to Colombia, 

Books and technical equipment, international exchange 

with India, 307 
Braderraan, Eugene M.. designation as U.S. representa- 
tive at ECAFE tradi> conference. Hong Kong. ." 

Department of Slate Bulletin 

irazil : 

Treaties, agreements, etc. : 
Atomic energy, cooperation in research in peaceful 
uses of, initialing of agreement with U.S. (1955), 
Cooperative programs of rural education and health, 

agreements with U.S., 630, 866 
Naval mission agreement (1942), agreement with 

(U.S. amending, 74 
Tariffs and trade, general agreement on, third pro- 
tocol of rectifications to schedules, signature, 398 
Technical cooperation in prospecting of oil shale 
(1950), extension with U.S. (1954), 453 
U.S. Ambassador (Dunn), confirmed, 246 
{reithut, Richard C, designation in State Department, 282 
Sricker amendment, proposed, to the Constitution, state- 
ment (Dulles), 820 
Sritish-American partnership, value of, address (Aldrich), 

{ritish Guiana and British Honduras, associate member- 
ship, international telecommunication convention (on 
U.K. application) , 74 
Jrosio, Manlio, credentials as Italian Ambassador to 
U.S., 295 
, Brussels Treaty (1948), as amended (1954), 465, 504, 605, 

606, 607 
t Bryan, Belton O., article on munitions control, 884 
Building exhibit, international, 767 
Bulgaria : 
Escapees, death sentence, and prison sentence on rela- 
tives, 415 
Forced labor in, 105 
Burma : 
Communism, lack of success in, 8 
Foreign policy and natural resources, 380 
Nationalist Chinese troops and dependents in section of 

transport to Formosa, 271 
Prime Minister U Nu, visit to U.S., 840, 1002 
Secretary Dulles, visit to, 332, 461, 1002 
U.S. Ambassador (Satterthwaite), confirmed, 630 
Burns, Maj. Gen. E. L. M., Chief of Staff of TSO, pro- 
posals to reduce Egyptian-Israeli border incidents, 
659, 662 
Buy American Act : 
Executive order prescribing procedures (text), 50, 389, 

Foreign criticism of U.S. import procedures, 49 
Italian memorandum on trade relations with U.S., 394 
Byrd, Rear Adm. Richard E., U.S.N., duties in program 

for International Geophysical Year, 644 
Byroade, Henry A. : 
Addresses on Palestine problem, 301, 302 
Confirmed as Ambassador to Egypt, 246 

Caffery, Jefferson, resignation as Ambassador to Egypt, 

Cale, Edward G., address on coffee in inter-American re- 
lations, 941 

Calendar of international meetings, 18, 233, 399, 574, 739, 

Calendar reform, U.S. attitude, note from U.S. Representa- 
tive to U.N. to U.N. Secretary-General, 629 

Cambodia : 

Communist aggression, 218, 420 
Secretary Dulles, visit to, 332, 461 
Treaties, agreements, etc. : 

Manila Pact, measure of participation in, 372, 378, 

379, 459, 726 
Military assistance agreement, with U.S. (1955), 891 
U.S. defense support, 51, 169, 338, 720 
U.S. economic and technical assistance, 569 
Viet-Nam, differences, 379 
Cameroons, British, statement in Trusteeship Council by 

visiting delegation, 317 
Cameroons, French, statement in Trusteeship Council by 

visiting delegation, 316 
Canada : 

Secretary Dulles, visit to, 333 

Trade relations, informal meeting of U.S. and Canadian 

officials, 97 
Treaties, agreements, etc. : 

Atomic information for mutual defense purposes, 

agreement with U.S. (1955), signature, 1059 
Aviation, convention (1944) on international civil, 

protocols amending, ratification, .545 
Customs facilities for touring (1954), accession, 1020 
Customs on temporary importation of private road 

vehicles (1954), accession, 1020 
Distant early warning system, establishment and op- 
eration, with U.S. ( 1955) , entry into force, 1020 
Great Lakes fisheries, with U.S.: treaty (1946), with- 
drawal, 281; treaty (1954), ratification, 982, 1059 
Tariff duty on certain fish and fish products, agree- 
ment with U.S. (1955), 1053, (text) 1055,1059 
Capital, private. See Investment of private capital 

Caracas declaration, against international communism in 
any American state: 
Cited, 43. 79, 215, 376, 588, 600, 729, 730, 770, 994 
Debate upon, 217, 218 

Guatemala, adherence by new government, 218 
Caribbean Commission, meeting at San Juan, concurrent 

with ses.sion of West Indian Conference, 863 
Carney, Admiral Robert B., Chief of Naval Operations, 

consultation at Taipei with Chinese officials, 732 
Carpenter, Isaac W., Jr., designation as Controller of 

State Department, 321 
Cartels, change in European attitude toward, 975 
Cease-fire in Formosa Strait, efforts toward, 251, 253, 289, 

330, 365, 552, 738, 755 
Center for International Studies, study of President's 

trade program, 963 
Central America, meeting the people of, address (Nixon), 

Central and Eastern Europe, U.S. gift of food for flood 

relief, 419 
Ceylon : 
Aviation, international civil, convention (1944), pro- 
tocols amending, ratification, 545 
Visit of Premier Sir John Kotelawala to U.S. (1954), 256 
Chapin, Selden, confirmed as Ambassador to Iran, 982 
Cheese, U.S. Tariff Commission to investigate whether 
certain imports should be subject to Presidential proc- 
lamation (1953), 815 

Index, January to June 1955 


Child ConcraM, lOtb Pu Americaii, 318 

Children, conrentlon on age for employment at sea, ratifi- 

ratloD by Argentina, "■W 
Children's Fund. Sre United Nations International Chil- 
dren'! Emergency Pond 
Claim to extended territorial waters, 935, 939 
Treaties, agreements, etc. : 
Agricultural surpluses, with U.S., 2S1, 313 
Cooperative proRram of agriculture and livestock 

( 1951 ). with U.S.. extension ( 1955 ) . 9S2 
Copyright, convention on literary and artistic (1910), 

ratiflcaUon, 866 
Copyright, Inter- American conventions (1946), ratifi- 
cation, 244 
Copyright, universal convention and protocol (1952), 

ratlflcation, 453 
Edn<-utiiinal exchange, with U.S.. under Fulbright 

Act. 604, 666 
Informational media guaranty program, with U.S., 313 
Relief supplies, duty-free entry and defrayment of 
Inland transportation, agreement with U.S., 866 
China, ('•■ : 

Achievements of communism in, 5, 8, 130, 219, 676 
Attac-li ujion mutual defense treaty between U.S. and 

Reimblic of China, 129, 289 
Bandung conference, statements of Oiou En-lai on 

pence. ".TS. 754. 800, 835, 999 
Cease-flre in Formosa Straits. See infra, offshore is- 
Forre<l Inbor. repealed by Peiping Minister of Public 
Seonrlty and others, 100, 105 ; Soviet Russian help 
in. 10,-, 
Forroowi unci Pescadores, rmrpose to conquer, and de- 
mand that U.S. withdraw. 211, 289, 327, 329 330 
377. 420. 422. 463. 525, 526. 527, 727. 7.54' 757'. S.Vi, 
1001 ; (juestlon of inclu-sion of coa.stal islands 191 

Inhuman treatment of nationals and of Americans, 6 

Intentions, estimate (Dulles). 551 

Korea, aggression in. statements (Dulles), 327. 330 

Ucaaage to U.N.. refusing to take part in Security Coun- 
cil discussions on hostilities In area of offshore 
Ulands. r,4. 527. 5.52; U.S. attitude, 2*>9. 33f>. 365. 

Offshore islands. New Zealand letter requesting meeting 
of Secirity Council to terminate armed hostilities in 
ar.-a. 2.'.1 . 2.-,3. 2K). 330. 365. 467. .552, 7.''>8, 7.55 

Prisoners. US. pers^,nnel of U.N. Command and US 
'J-iil'o",''' '■"'"^••'■'^""n'' «t Oeneva for release of. 
430 M ; detention. 6. 10, 44 ; offer to provide entry 
V .«. for relatlvPH of. U.S. attitude. 1!»2. 214 ; release 
"f four. 053; stat.™ont (Dulles). .5.52- U N effort 
for releaae. 122. 100. 268. 429, 738 

Porgo, stnt.-ment (I)ullc-s), (H2 

Rerogiiltlon oppo«ied by U.S., 131 

negulMion, for punUhment'of counter-revolutionaries, 

8lno-HoTkt Bgrwmenu (U«4) 7 
f^tbeaat A.I.. .ggre«lv. design, ,„, n^S. .V,2 

China. Communist — Continued 
U.N.. efforts to obtain seat in, 4S3 
UnemplojTiieiit, reduced by forced labor, 104 
Viet-Nam. civil war Ln, fomented by, 378, 420 
China. Republic of (see also Formosa) : 
Chiang Kai-shek. President, exchange of messages wiA 
President Eisenhower on redeployment of fores 
from Tachens. 332 
Consultation with U.S. officials under mutual defewe 

treaty, 420, 732 
FOA<:hina. counterpart funds, 423 
Influence upon Chinese in Southeast Asia, 8 
Xaiiofuii City Bank of Xeic York v. Republic of Chim, 

Supreme Court decision, 557 
Offshore islands, armed hostilities, New Zealand letter 
requesting meeting of Security Council, 251, 253. 
2S9, 330, 365. 467, 552, 738, 755 
Secretary Dulles, visit to, 462 
Students and scholars, return to Far East, 627 
Tachen Islands. U.S. aid in redeployment of forces from, 

191, 2-55. 290. 329, 332 
Treaties, agreements, etc : 
International telecommunication convention (1^2). 

ratification, 545 
Mutual defense, with U.S. (1954) : 

President Eisenhower's transmittal to Ctongress 
with texts of Secretary Dulles' report and ex- 
change of notes with China, 1.50 
Ratification and entry into force, 328, 366, 377, 420. 

4.53, 462, 524. 666 
Secretary DuUes' statements, 287. 420, 459. 462 
Statements : ( H. Hoover, Jr. ) , 954, 1000 ; ( Murphy) , 
524: (Robertson), 129; ( Sebald ) , 377 ; (Stassen) 
Xaval craft, small, agreement with U.S. (1954) relat- 
ing to loan of, agreement (1955) amending, 7S6 
Troops and dependents in northeast Burma, evacuation 

to Formcsa. 271 
U.S. Congress, joint resolution on defense of Formosa. 

213 : President Eisenhower's message to, 211 
U.S. support, 169, 423, 712, 718. 720 
U.S. prjsition in negotiations dealing with territory or 
rights of, 421, 463, 738, 75.5, 836, 999, 1000 
Chou En-lai : 
Me.ssage to U.N. Secretary-General, decUning to attend 
meeting in regard to Chinese offshore islands, 25* 
Statements on peace at Bandung conference, 738, 755, 
757, 7.59, 800, 835, 999 
ChurchiU, Sir Winston : 
Retirement, statements (Eisenhower; Dulles), 640 
Tribute to U.S., 9 
f'iviiian Relief In Korea (CRIK), 297, 298, 299 
Germany, agreement (1955) with U.S. for disposition 
of certain, pursuant to surplus property payments 
agreement (1053), 10.59 
Germany, assets in U.S. and U.S. war claims, conversa- 
tions on, 267, 290, 437 
•lapan, assets in U.S., conversations on, 438 
.Netheriands, diwnissions with U.S. under conflicting 
claims to German enemy assets (1947), and claims 
to looted securities (1951), 998 

Department of State Bulletin 

lassifled materials and technical data, subject to import 

and export controls, 885 
oal (see also European Coal and Steel Community) : 
FOA shipments to Viet-Nam, 192 

Proposals by Advisory Committee on Energy Supplies 
with regard to domestic conditions and exports, 490 
offee, importance in inter-American trade, 941 
ollective action. See Enforcement measures 
oUective Measures Committee, U.N., 434 
ollective security : 

Addresses and statements : (Beaulac), 964, 966; (Mor- 
ton), 215; (Murphy), 796, 848; (Sebald), 375; 
(TVadsworth) , 434 ; ( Waugh) , 958 
Asian nations, attitude, 1000, 1003 
Economic policy, relation, 877, 878 
"Long haul" concept, 44 

Map, showing U.S. collective defense arrangements, 478 
Report over television (Dulles), 872 
Vigorous economies, partnership of, statement (Eisen- 
hower), 883 
ollius. Gen. J. Lawton, Special Representative of the 
President in Viet-Nam, return for temporary consulta- 
tion and report to the President, 192, 423, 738 

• olombia : 

Atomic energy, peaceful uses of, initialing of agreement 
with U.S. (1955) for cooperation in research, 1018 
Cyprus case in General Assembly, opinion of representa- 
tive, 264 
U.S. Ambassador (Bonsai), confirmation, 366 
'olombo Plan. iSee Consultative Committee on Economic 

Development in South and Southeast Asia 
lolon Corridor, convention (1950), with Panama, ratifica- 
tion, 700, 702, 746 
'olonialism, Communism a new variety of, 74, 837 
Commerce Department, export controls on Salk poliomye- 
litis vaccine, 689 
Commercial samples and advertising material, convention 
to facilitate import : 
Accession by Switzerland, Spain, and Netherlands and 

listed territories, 37, 1020 
Ratification by Greece and Sweden, 453, 498 
Commission on Organization of the Executive Branch of 
the Government (Hoover Commission), 470, 474, 533, 
534, 537 
Committee for Reciprocity Information : 
Notice of hearings, trade-agreement negotiations with 

Switzerland on possible concessions, 361 
Supplementary notice, trade-agreement negotiations 
involving Japan, 363 
Commodities agreements. See Agricultural surpluses 
Commodity Credit Corporation, part in agricultural sur- 
plus disposal program, 168, 169, 202, 206, 397 

• Commodity set-aside, delegation of authority for admin- 

istering, 655 
Commodity Trade Commission, established by ECOSOC 

resolution, U.S. attitude. 111 
Communism : 
Achievements in China and in Asia, 5, 8, 131, 219, 460, 

483, 524, 676 
Aggression by, statement (Lodge), 252 
Anticolonialism, exploitation, 74, 837 

Communism — Continued 

Caracas declaration against, 43, 79, 215, 217, 376, 588, 
600, 729, 730, 770, 994 

China, economic and political aims in, 219 

Council of signatories to Manila Pact, statement of pur- 
pose to combat, 372 

Economic strength, security against communism, 119, 

Far East, expansion in, 5, 131, 219, 483, 524, 676 

Flight of citizens from North Viet-Nam to free Viet- 
Nam, 222 

Guatemala, setback in, 43, 218, 600 

Haiti, steps to eliminate, 274, 275 

Huk revolt in Philippines, 8, 460, 524 

Imperialism, 302, 422, 450 

Indochina, strategy in, 218 

Iran, setback in, 43, 994 

Italy, position in, 133, 292, 616 

Latin America, notably Guatemala, threat to, 484 

Near East, South Asia, and Africa, menace, 481, 761, 762 

New colonialism, 302, 422 

Peace, its pattern for, 671 

Propaganda, exposure of in General Assembly, 270 

Statements (Eisenhower), 610; (Murphy), 796; (Nixon, 
in Central America), 589, 590; (Robertson), 126; 

Subversion, technique of, 13, 770 

Subversion in Asia, statements (Dulles), 460, 462, 463 

Tactics vary, goal the same, 79, 80, 123, 127, 518, 671, 

Viet-Nam, agents at work in, 224, 229 
Communist bloc nations : 

List of, 127 

Nature of threat to U.S., 480 

Trade fairs, increased part In, 719 

Voting record in U.N., 433 
Communist Party, in Prance, vote of members on Paris 

agreements, 43, 183 
Conant, James B., U.S. High Commissioner for Germany : 

Addresses on U.S.-German relations, 137, 1034 

Confirmed as Ambassador to Germany, 865 

East German road tolls : letters to Soviet High Com- 
missioner Pushkin, 648, 736, 834 ; tripartite commu- 
nique by U.S., U.K., and French Ambassadors, 997 
Congress : 

Bipartisan cooperation, statements (Dulles), 287, 328, 

Foreign policy listed. See Legislation 

Formosa, joint resolution on defense of, 213, 255 
President's message and statement, 211, 214 
Statements (Dulles), 289, 328, 420, 463, 527, 552 
Statements (Morton; Lodge; Sebald; Murphy), 220, 
252, 377, 525 

House, address before by Australian Prime Minister 
(Menzies), 560 

House Committee on Foreign Affairs, hearings on con- 
tinuance of technical and economic aid to India, 
on amending Foreign Service Act (1946), and on 
the mutual security program, 349, 407, 911 

House Judiciary Committee, subcommittee of, statement 
(Kalijarvi) on antitrust policies and foreign trade, 

Index, January to June 1955 


ContivBB — Tout liniPil 

llouiH' WajH mill Mi'iius Comiiilttee, bearings on eiten- 
Hlnii (.f Trudf AKTwmeiits Act (1934), statement 

(DuiiM). 171, 443. an 

Joint i'onimlttiH' on Atomic Energy: 
ApiMlntmc'iit i>f panol. 602 

Pn>p«»ed a»fn-«-iii«'Mt for cooix-ratlon of U.S. agencies 
with portloH to NAT Hubinltted to, 686, 687 
Joint M>«ilon, address by I'resldent Maglolre of Haiti, 

Law providing relnibursetuent of owners of U.S. flag 
TpKwl.M dolK-d on claim of territorial waters, 937 
rmldentlal meswiges. Sec Elsenhower: messages 
UolatlonM with State Deiiartment (1030-55), 531 
H^natp, Kalian I'rlnie .Mlnl.ster, address before, 613 
8«uatc ApproiirlntloiiH Committee, statement (Lodge) 

on I'.N. technical as-sistance program, C63 
Senate Committee on Flnanre, hearings on trade agree- 
ments hill, statements (Dulles), 171, 443, 572 
Senate Committee on Foreign Helations, hearings, state- 
ments (Puiles) on — 
Austrian state treaty, 1013 
China, mutual defense treaty, 287 
London and I'aris agreements, 605 
Mutual sei'urlt.v program, 854 
Yalta papers, 7T:S 
Senator Olln D. Johnston, Inquiry as to security status 

of State D«>partment employees and reply, 245 
U.S. Advisory Comnil.sslon on Eklucatlonnl Exchange, 
Senate contlrniiitlon of members of, 469 
ConRTes-s oil Ijircf l>aiiis, !(st 
Conaell euroii^k'n jxiur la recherche nud^aire, 692 
Conservation of fur seals of North Pacific Ocean, U.S. 

invitation to conference, 7S5 
Constantinople convention (18.S.S), guaranteeing freedom 
of iinvlgiitlon through Suez: 
Determination by U.K. and Kgyiit to uphold, 260, 261, 305 
ERTptian violation, Isruell claim, 305 
U.S. position, 2m 
Constitution, text of Joint resolution proix)sing amend- 
ment (Bricker amendment), relating to legal effect 
of trenties. 821 
Consuln r olllcf*. U.S. Sr« undir Foreign Service 
<<jDsullatlv)> Conimltte<> on Economic Development in 
South and .Soiiibeast Asia (Colombo Plan) : 
Artlrltles. .'.23, 712. 727, 771, 8.V., 913 
Third annual report, summary, 16 
<°ontln<'ntal shelf and problems of the high seas : 

General Aiwmbly r.*ilutlon requesting International 

liOw ('oinnilssioii to submit re|M)rt, 62, 64 
Jariwllnlon by contiguous nation, U.S. proclamation, 

Cooper. John Sherman, confirmation as Ambassador to 

India, and Neiml. ,100 
Copyright cnnvf'ntlons: 

Inler-Amerl.nn convention (IWfl), ratification by Chile, 

Literary and artistic ( iniO) . ratlflcntlon by Chile, 866 
Unlvenml. nt.d pr-tor..! (ii».-,2), ratification by Cliile 

an<l Simln. I.VI. Ono .nd iUt,'v prolrH-..^ ( llk'.S). accession bv Costa 

Ulm, 1.17; ratinrnllonhy Israel, 006 


Corfu Channel case (1949), 699 
Corse, Carl D., designation in State Department, 282 
Corsi, Edward, designation in State Department, 74 
Costa Rica : 
Aircraft, sale by U.S. to, OAS resolution respecting, 182 
Ambassador to U.S. (Fournier), credentials, 957 
Conflict in, OAS action to uphold government, 178, 270, 

National Power and Light Co., credit to by Export- 
Import Banit, 604 
Petition to OAS for military assistance, 132 
Political conditions, address (Nixon), 588 
Treaties, agreements, etc. : 
Constitution of ICEM ( 1953) , acceptance, 746 
Cooperative programs with U.S. in agricultural re- 
search (1954), 545: agriculture (1955), 453, 906; 
and health (1955), 1059 
Copyrijrht, universal, and three protocols (1952), ac- 
cession, 157 
Customs Tariffs, International Union for Publication 
of. protocol (1949) modifying convention (1890), 
adherence, 37 
Investment guaranties, with U.S., exchange of notes, 
U.S. Ambassador (Woodward), confirmation, 113 
Cotton Advisory Committee, International, agenda and 

delegates for meeting at Paris, 1060 
Cotton exx)ort policy, 881 
Counterpart funds : 

FOA-China, generated by sale of FOA-financed imports, 

Ireland, disposition of balance, agreement with U.S., 

Italy, use of a Trieste industrial loan, exchange of 
notes, U.S. and Italy, 396, 498 
Couve de Murville, Maurice, credentials as French Am- 
bassador, 2.55 
Crittenden, E. C, article on 10th General Ck)nference on 

Weights and Measures, 54 
Crusade for Freedom : 
Balloon leaflets released over Hungary, U.S. note to 

Hungary, 14 
Results, address (Gruenther), 519 
Statement (Eisenhower), 295 
Ambassador to U.S. (de la Caiupa y Caraveda), cre- 
dentials, 732 
Tariff concessions, under GATT, request for renegotia- 
tion, 1057 
Treaties, agreements, etc. : 

Military assistance, agreement with U.S. (1955) for 
disjMisition of materials furnished by U.S. under 
ngrwnient (19."i2), 944 
Naval mission, extension of agreement with U.S. 

(19.55), 1020 
Safety of life at sea ( 1948 ) , acceptance, 281 
Cultural relations, inter-American convention for promo- 
tion of. ratification by Venezuela, 244 
Cumming, Hugh S., Jr., address at opening of Lincoln 
Library, Padang, 385 

Department of Stale Bulletin 

Currency : 
Accruing from sale of agricultural surpluses, uses of 

by U.S., 204, 725 
Convertibility, President's message to Congress, 122, 
391, 813 
Customs : 
Facilities for touring, convention (1954), 742, 744; sig- 
nature by Japan, Luxembourg, and India, 37, 545 ; 
accession by Canada, 1020 
Private road vehicles, temporary importation, conven- 
tion (1954), 744; signature by Japan and Luxem- 
bourg, 37 ; accession by Canada, 1020 
Simplification of procedures, 49, 81, 120, 177, 389, 391, 
Customs Simplification Acts (1953; 19.54), 120 
Customs tariffs. International union for publication of, 
convention (1890), adherence by Viet-Nam, 746; pro- 
tocol (1949), modifying convention, adherence by 
Costa Rica and Viet-Nam, 37, 746 
Cyprus : 
Anglo-Greek discussions on status of and debate in 

General Assembly, 261, 263 
General Assembly resolution and statements (Lodge), 
31, 32 
Czechoslovakia : 
Ceases to be member of International Monetary Fund 

and International Bank, 439, 453 
Forced labor in, 105 
Notes demanding return of Czech border guard, and 

U.S. reply, 736 
U.S. gift of food for flood relief, summary of shipments, 

U.S. proceedings in International Court of Justice 
against, for destruction of aircraft, 648 

Danube Basin, U.S. relief shipments to peoples in flooded 

area, 138, 419, 726, 847 
Davis, Kingsley, confirmation as U.S. representative on 

U.N. Population Commission, 546 
Defense Mobilization, Director of, authority with respect 

to Buy American Act, 658 
Defense Production Act, desirability of extending, 82 
Defense support (see o?«o Development assistance) : 
Budget recommendations (Eisenhower), 168, 713 
China, 169, 423, 712, 720 
Greece, 338, 712, 720 ; reduction of, 344 
Italy, agreement with U.S., 395, 498, 720 
Korea, 296, 718, 720 
Near East, South Asia, and Africa, countries of, 51, 169, 

338, 569, 720 
Pakistan, agreement with U.S., 157, 282, (text) 808, 654 
Turkey, 344, 712, 720 
Yugoslavia, 847 
de la Campa y Caraveda, Miguel Angel, credentials as 

Cuban Ambassador, 732 
Denmark : 
Economic and political problems, 811 
Greenland, new status as integral part of, 68 
Treaties, agreements, etc. : 
Aircraft, certificates of airworthiness, agreement with 
U.S. (1954), 74; agreement with U.S. (1934), ter- 
minated, 74 

Denmark — Continued 

Treaties, agreements, etc. — Continued 

Atomic energy, initialing of agreement with U.S. for 

cooperation in research in peaceful uses, 1018»i 
North Atlantic Treaty : 
Accession of Germany (1954), acceptance, 786 
Agreement between parties to NAT on status of 

forces (1951), ratification, 982 
Protocol on status of international military head- 
quarters (1952), ratification, 982 
de Torrents, Henry, credentials as Swiss Minister to U.S., 

Development assistance ( see a/«o Defense support) : 
Bolivia, to redeem lowlands, 308, 722 
Budget recommendations (Eisenhower), 168, 713 
Egypt, port improvement and other projects, 441, 722 
Guatemala, for economic recovery, 722 
India, 054, 722 

Near East, South Asia, and Africa, countries of, 338, 
339, 722 
Diem, Ngo Dinh, Premier of Free Viet-Nam, 838, 873 
Diplomacy, basic instrument for international understand- 
ing, address (Beaulac), 969 
Diplomatic relations, Libya, elevation of legation to em- 
bassy, 351 
Diplomatic representatives in U.S., credentials : Cuba, 
732 ; Costa Rica, 957 ; Dominican Republic, 380 : Fin- 
land, 214 ; France, 255 ; Germany, 795 ; Honduras, 795 ; 
Italy, 295; Libya, 840; Panama, 677; Poland, 795; 
Switzerland, 214 
Direct forces support : 
Budget recommendations (Eisenhower), 167, 713 
China, 712 
Korea, 167, 296, 712 

Near East, South Asia, and Africa, countries of, 339 
Yugoslavia, 847 
Disarmament : 
Appointment of Special Assistant to President ( Stassen) 

to develop policy on, 556 
Development of U. S. policy, address ( Stassen ) , 801 
Statements (Dulles), 557, 609, 675 
Disarmament Commission, U.N., Subcommittee meeting 
in London : 
Purposes, statements (Lodge; Wadsworth), 450, 901 
Sessions, 235, 435, 557, 768 
Soviet misrepresentation of Western position, statement 

(Wadsworth), 627 
Soviet proposals, texts (May 10) : declaration, 900; 
resolution on convention for reduction of arma- 
ments and prohibition of atomic weapons, 902; 
resolution on international control, 904 
Texts of documents submitted (Feb. 25- Apr. 21) , 892 
U.S. views on Soviet proposals, statement (Wadsworth), 
Displaced Persons Act (1948), effect on immigration, 1047, 

Dixon, Roger C, designation in State Department, 282 
Dollar problem in foreign trade, address (Thibodeaux), 46 
Domestic jurisdiction : 

Competence of General As.sembly respecting race con- 
flict in South Africa, 33 
Cyprus, case of, cited by U.K. in General Assembly, 263, 

Index, January fo June 1955 


Dominican lU-puliUc: . 

Amba««.dor to l.S. (Sal.iwir Canmrena), credentials, 

Treatlm, aRreementa, etc. : 

Aviation. Intermillonal civil (1944), protocols amend- 

InK. ratlllcatlon, MS 
Safety of llfi' at sea, convention (1048), acceptance, 
Dorwy. Stephen P., article on social discontent in Near 

East, 700 
Double taxation, conventions for avoidance of, with 
Belgium, 498: OiTnmny. 37, 38, 113; Italy, 614, 630; 
Japan. 408. (MJT., 0C«, 701; ; V.K.. 244, 282 
Drew. Gerald A., conflrmation as Ambassador to Bolhia, 

DrucH. pn)tocol for terminating Brussels agreements for 
nnlfl'-atlnn of pliarmncopwial formulas for potent, 
ratlflcutlon by HelKlum. 306 
Dufek. Capt. GeorRe, U.S.N., duties in U.S. expedition to 

Antarctic, 644 
Dull<-H. John Foster, Secretary of State:, statements, etc. : 
American tradition, 1031 
Armaments control. U.S. policy, GOO, 675 
.\rms and ammunition from Soviet source delivered 

at I'lierlo I5arrlo.«i, 217 
Asia. U.S. policy in, 327, 4.50, 670, 855, 912 
Atomic energy, iH'aceful uses, announceiiieiit with 

Italian Prime Minister, 615 
Atomic energy, peaceful uses, at Bangkok, 421 
Aastria, Soviet intentions toward, 7.">4, 805, 833 
Austrian state treaty, signing, 80.5. 873. 017. 1013 
Balancing the books for /95.J. 43 
Baltic countries, plight of, 337 
Hnndung cimference. InHuetice for peace, 373, 754, 757, 

Bangkok conference of signatories to Manila Pact, 
op.'nlng and closing statements, 3.30, 3,32. 373, 374 
lllpnrtisanshlp in fnrels;n policy. 287. 328, 005 
IJiHlget. State Department (1050). 823 
fhlna, Itepubllc of, fidelity to our ally, 421, 4(3, 738, 

7.Vi. WW) 
Churchill, Sir Winston, retirement. 640 
f'lnrlnnntl Council on World Affairs. German study, 

Cx>mmiinlHt China ; efforts to take offshore islands from 

Nationalists, 191 ; intentions, .327, 551 ; purge, 642 
ConHtltutlon, proposi'd amendment relating to trea- 

tlpti, 820 
DlMirmament Commission, D.N., me<>ting of subcom- 

mlttpo, ■V>7 
K.4len. Sir Anthony. British Prime Minister. 041 
TorolBn MlnlKterH' meeting, possibility of, 641 
ForelCT policy, U.S.: broad goal of,>«l, 174, 327, 373; 
prInrlplM. 071 ; recent achievements, 727, 871 Oil 
Knnlen S<>rvlrf. tributes to, 402. ,551. 0114, ()!).5, 1014 
FnrmoKn. area of, wnr or ponce In, «M3, 7:J8, 7.55 
r..rmo««. rongreiwlonnl Joint resolution on 280 S'^S 
430, 403 

Frmrh Amwrnbly. vote to ratify Uudon and Paris 
acronjii, 43 


Dulles, John Foster, Secretary of State— Continued 
Addresses, statements, etc.— Continued 

Germany, deposit of accession to North Atlantic 

Treaty, 793 ; part in negotiations dealing with rights 

of, (U2 ; welcoming into NATO, 805, 831 

Italian Foreign Minister, signing of double taxation 

conventions, 614 
London agreements, 43, 188, 606 
Manila Pact, 43, 210, 330, 332, 373, 374, 450, 720 
Middle East, 354 
Military forces, U.S. policy, 12 
Mutual defense treaty, with China, 287, 328, 420, 462 
Mutual security program, 171, 854, 911 
National Reserve Plan, 514 
NATO, 6th anniversary, 685 

NATO Council meetings (Dec. 1054 ; May 1955) , 0, 831 
Neutrality, with respect to Germany and Austria, 932 
Pacific Charter, 331 
Pan Americanism, 728 
Paris agreements, 605 
Passports for visits to Communist China, inadvisa- 

bility, 214 
Peace, efforts for, 123, 221 
Report to President on TV of events in Europe (May 

9-15), 871 
Salk poliomyelitis vaccine, sharing with other coun- 
tries, 680 

Secretary-General Hammarskjold's efforts for release 

of imprisoned U.N. Command personnel, 190, 552 

Soviet Union, possibility of lessened tension, 642 

State Department iiersonnel, tribute to, 551, 993, 994, 

Stevenson, Adlai, criticism of present foreign policy, 

Suez Canal, Anglo-Egyptian agreement, 260, 261, 904 
Trade Agreements Act, extension, 171, 443, 572 
U.N., importance of, 676 
U.S. defense commitments in Far East and Southeast 

Asia, 421, 526 
Yalta papers, publication, 773 
Award and citation from Advertising Club of New York 

551, 552 
Bangkok conference of signatories to Manila Pact, U.S 

representative, 318, 422 
Canada, visit to, 333 

Consultation at Taipei with Chinese officials, 732 
Correspondence, messages, reports, etc. : 

Austrian state treaty, report to President, 1007 

Lord Ismay, exchange of notes on NATO anniversary, 

Mayer, Rene, president of European Coal and Steel 

Community, !)07 
Mutual defense treaty, with China, report to Presi- 
dent, 1.50 
Panama, upon death of President of, 91 
Soviet Ambassador, restrictions on travel in U.S. by 
Soviet citizens, 193 
Far Eastern countries, visits to, 332, 459 
Formosa, visit to, 462 

U.S. chiefs of mission In Far East, at conference of, 332 
Dunn, James C., confirmed as Ambassador to Brazil, 246 

Eakens, Robert H. S., (lesignation in State Department, 


Department of State Bulletin 

lijan, Ambassador Abba, 302, 304, 305 

CAFE. See United Nations Economic Commission for 

Asia and the Far East 
eonomic aid (sec also Technical and economic aid) : 
Israel, special economic assistance, agreement with U.S. 

(1955) amending agreement (1953), 498 
Korea, agreed minute, 296, 299 
Libya, agreement with U.S., 351 
Yugoslavia, agreement with U.S. (1955), 498 
iconomic and Social Council, U.N. (ECOSOC) : 
Hottel, Mrs. A. K., confirmation on Social Commission, 

Resolution establishing Commodity Trade Commission, 

Resolution on freedom of information, 59 
Resolution reconstituting Advisory Committee on Refu- 
gees as UNREF, 785 
Iconomic Commission for Asia and Far East, U.N. 

(BCAFE) : session of subcommittee on trade, 57 
Iconomic Commission for Europe, U.N. (ECE) , 546, 558 
iconomic Cooperation Administration (ECA) : 
Aid to Korea, 296, 297 

Grant (1950), for refugee housing in Germany, 189 
Economic defense program, article (Kalijarvi), 809 
Iconomic Development, Institute on, part In technical 

cooperation programs, 721 
economic policy and relations, U.S. : 
Aid to foreign countries. See Technical and economic 

aid to foreign countries 
Article by Historical Division, State Department, 528 
Asiatic nations, program for, address (Murphy), 522, 

Cold war, economic aspects, address (H. Hoover, Jr.), 

Colombo Plan, U.S. contribution, 16, .523 
Domestic economy. President's messages to Congress, 

79, 81, 119, 163 
Expanding economies of free nations, addresses : (Eisen- 
hower) , 753, 754 ; ( Waugh) , 877 
Foreign economic policy : 
Aim of, 528, 529 

President's messages to Congress and statement, 119, 
678, 696, 812, 844 
Free world, industrial prosperity in, address (H. Hoov- 
er, Jr.), 955 
Investment of private capital abroad, promotion of, 19, 

137, 439. 523, 602, 723, 800, 844, 845, 973 
Korea, aid to (19-15-.54), 296 
Latin America, 600, 601 
Military strength, dependence on, 955 
U.S. responsibility, nature of, 171 
U.S. trade policies, address (Aldrich), 390 
Wartime to peacetime economy, transition, 163 
ECOSOC. See Economic and Social Council, U.N. 
Ecuador : 

Claim to extended territorial waters, 935, 937, 939 
Treaties, agreements, etc. : 
Air force mission, army mission, and naval mission, 

agreements with U.S. extending (1955), 982 
Cooperative programs, with U.S., in agriculture and 

education (19.55), 441, 1059 
Investment guaranties, with U.S., 666 
Trade agreement, with U.S., termination, 1.53, 313 

Index, January fo June 1955 

Ecuador — Continued 

U.S. contributions to technical cooperation programs, 

U.S. llag fishing vessels, seizure on claim of territorial 
waters, 937 
Eden, Sir Anthony : 
British Prime Minister, appointment as, statements 

(Eisenhower; Dulles), 640, 641 
Statements at London conference, British forces on 
Continent, 188, 608 
Editors, Soviet, of youth newspapers, plan to visit U.S., 

487 ; canceling of plans, 695 
Education : 

Cooperative programs, agreements with : Bolivia, 746, 
806; Brazil, 630; Ecuador, 10.59; Haiti, 366, 906; 
Honduras, 944; Nicaragua, 826; Paraguay, 906 
Integrated, combining liberal and practical, address 

(Eisenhower), 1029 
Nuclear studies. See Nuclear studies 
Education, Institute of International, 487, 695 
Educational Exchange, U.S. Advisoi-y Commission on, 

announcement of chairman and other members, 469 
Educational exchange program, international : 
Austria, agreement with U.S. (1955), under Fulbright 

Act, 1019 
Budget message (Eisenhower), 170 
Chile, agreement under Fulbright Act, 604, 666 
Conference on American Studies to be held at Oxford, 

383, 1039 
Function, address (Key), 381 
India, librarians for advanced training in U.S. and 

exchange of books, 307 
Information program under, 267 
Israel, soil expert, 307 
Italy, agreement with U.S. under Fulbright and Smith- 

Mundt Acts, 619 
Latin America : 
Editors and publishers from, tour of U.S., 440 
Leaders and students, exchange of, 599 
U.N. agencies and candidates, cooperation, 384 
Educational institutions, U.S., technical cooperation con- 
tracts in underdeveloped areas, 348, 350, 721, 722 
Egypt {see also Egyptian-Israeli) : 
Armistice Demarcation Line between Israel and, ten- 
sion near, 860 
High Aswan Dam project, 765 

Labor legislation, regulating dismissal of employee, 764 
Land reform law and rural social centers, 763 
Radioisotopes, use of, Egyptian scientists to study in 

U.S., 199 
Suez Canal, and Gulf of Aqaba, Israeli complaint ot 

restrictions on shipping, 110, 305 ; U.S. attitude, 305 
Treaties, agreements, etc. : 

Development assistance, agreement with U.S., for 

highway and port development, 441, 722 
Informational media guaranty program, agreement 

with U.S., 545 
International telecommunication convention (1952), 

ratification, 206 
Israeli-Egyptian general armistice (1949), 305 
Suez Canal, agreement with U.K. (1954) , 217, 260, 269 


Ecjrpt — Contlnuwl 
TreatleH, aicri'otiM'nts, etc.— Cdiitlnucd 

Sum Cuiial. .t.nviM.tlon (lH.s«). frwtlom of navigation 

throiiRh. ndhcrt'iioe t" prliicliilf i>f. l'«Ml, 261 
l'nlr«T!uil i«>Ntnl loiivi-ntloii (li>.VJ), nitiHcation, 746 
I'.S. Anilmsjuidor ( Ityronde), cc.utlrmation, 246 
U.S. «-«ii«imlr and twliiilcnl cooperation programs, 346, 

71». ~H.'> 
C.8. erant and loan aswlstance, 10!) 
Kgyptlan I.sraell olasli in tlie Gaza Strip: 

Letter (UilKi't, to Security t'oiiiicil members on con- 

tlntie<l Imid.-nt.s. 1016 
Swurlly Council resolutions, 661, 662 
Btatementfl of I'.S. representatives (Lodge; Key), 659, 
060. 061. SCO 
KifTP'lan-Isracll Mixed Armistice Commission, 305 
Klm'nhower. KwiKlit D., Tresident : 
Addres.s«'S. statements, etc. : 
AKTleultural Trade Development and Assistance Act, 

not to disturb world markets, 201, 202, 880 
Albania, offer of food to, 486 
Atomic energy, cooperation with Turkey In peaceful 

uses. Hoe 
Atoms-for-iK'aoe (19.-3), 272, 294, 336, 421, 460, 467, 

.V.3. tBNt, 9M>, KGS 
Austrian state treaty, signing, 873 
Kandung conference, influence for peace, 727 
Chancellor Adenauer, Joint statement with, 10.33 
Churchill. Sir Winston, retirement, 640 
Collertlve security, partnership of vigorous economies, 

Commerce and world peace, S42 
Crusade for F>ee<Iom, 295 
Eden. Sir Anthony, Ilrltish Prime Minister, WO 
Foreign policy, U.S., precepts governing, 293 
Formosa. Joint resolution, gratitication at vote, 214 
Freni-h Assembly, vote to ratify Paris accords, 80 
Imixirt of hatters' fnr, rate of duty, 657 
Import of iieanuts and walnuts, (i.->5, 657 
Inter-American Investment Conference, 439 
International Finance Corporation, U.S. participation, 

121, 844 
Middle Fast, poHitlve develoiiments, 340, 3i54 
Military strength, U.S., 81 
Near Fjist, Just |>eace as U.S. goal, 303 
Nuclejir age, i)roblems of, at Pennsylvania 

State University, 1027 
PaklsUn. military aid to, .340 
IVnce, nddn-Hs at West Point, 9S7 
Peace, two-way trade as steps im road to, 7,51 
iUdIo Vtw Kuro|i4-, 295 
HonlhenNt Asia, call for united action against aggres- 

sl<m (Ui.Vt). .178 
Thai Prime Minister and Flebl Marshal, award of 

I.PClon of Merit. 8-11 
Trade, fertile mill for \>onre. 7.V4 
Trade barrlem. gnidual rmliictlon. 81, 120, 879 
Travel, piK-onraifenient of, 121, 494, 813 
Undemtnn.linif ..f publl.- atTalrs, ne«^d for, 609 
U.N.. U H numx.rt of. 81 
Cb«» Import., direction to U.S. Tariff Commission to 
Invpiitliate. Kl.'i 


Elsenhower, Dwight D., President — Continued 
Correspondence : 

Bao Dai, Chief of State of Viet-Nam, 423 

Chiang Kai-shek, on redeployment of forces from 

Tachens, 332 
European Prime Ministers, U.S. policy declaration on 
Western European Union and related Paris agree- 
ments, 464, 608 
Indian Premier Pandit Jawaharlal, 340 
Mayo, Dr. Charles W., president of American Asso- 
ciation for U.N., 466 
Panama, upon death of President of, 91 
Rockefeller, Nelson A., appointment as Special Assist- 
ant to the President, 16 
Sandstrom, Justice, on Ked Cross aid to European 

flood sufferers, 419 
Secretary Dulles on transfer of FOA to State Depart- 
ment, 715 
Secretary of Defense Wilson on personnel strengths, 

87 ; on security of U.S. and free world, 470 
U.S. Tariff Commission, on imports of bicycles, 1004; 
rejecting increase in tariff on silk scarves, 52 .i 
Executive orders. See Executive orders I 

"Good partner" concept, 44, 86, 126, 128 * 

Italian Prime Minister and party, discussions at W'hite 

House, 613 
Meeting witli Secretary of Defense and Joint Chiefs of 

Staff, discussing Formosa, 213 
Messages, reports, and letters to Congress : 
Agricultural Trade Development and Assistance Act 

(1954), activities under, 200 
Austrian state treaty, transmittal to Senate, 1007 
Budget message, excerpts, 163, 713 
Cooperation with NATO in atomic information, letter 

to Senator C. P. Andenson, 686 
Decision against imposing new import restrictions on 
■wood screws, letters to Senator Jlillikin and Repre- 
sentative Reed, 97 
Foreign economic policy, 119, 844 
Formosa, U.S. policy, 211, 214; defensive only, state- 
ment (Lodge), 2,52; quoted (Dulles), 289, 328, 420, 
463, 527, 552 
Great Lakes fisheries conventions: (1954) for ratifi- 
cation and (1946) for withdrawal, 281 
Inter-American Highway, letters to Vice President 

Nixon and Speaker Rayburn, 595 
International Finance Corporation, 121, 844 
Mutual defense treaty with China, transmittal to 

Senate, 150 
Mutual Security Program (1956), 166, 695, 711 
Organization for Trade Cooperation, U.S. membership, 

Refugee Relief Act, recommendations for amending, 

State of the Union, excerpts, 79 
Trade agreements, report on inclusion of escape 

clauses, 153 
Trade Agreements Act, extension of. letter to Repre- 
sentative Joseph W. Martin, Jr., 388 
Proclamations. Sec Proclamations 
SHAPE, European situation (1951), 508, 515 
Tribute by President Magloire of Haiti, 274 

Department of State Bulletin 

Eisenhower, Dwight D., President — Continued 

Western European Union and related Paris agreements, 
U.S. policy declaration, 464, 608 
EI Salvador : 
Claim to extended territorial waters, 935 
Treaties, agreements, etc. : 
Agricultural development, cooperative program, with 

U.S., 630, 666 
Convention of World Meteorological Organization 

(1947), accession, 982 
Productivity, cooperative program with U.S. (1954), 

Trade agreement with U.S., question of escape clause, 
U.S. Ambassador (Hill), confirmation, 113 
Emergency assistance in disasters, under Title II, Agricul- 
tural Trade Development and Assistance Act : 
Amount of agricultural surplus commodities, 725 
Bolivia, Pakistan, Nepal, and Libya, aid to, 157, 308, 

348, 349, 726 
Danube Basin, relief shipments after floods, 138, 419, 

726, 847 
Haiti, hurricane disaster, 275, 702, 726 
Employment service program, cooperative, with Peru 
(1954), pursuant to technical cooperation agreement 
(1951), 206 
Enemy property, authorization to return in cases where 

owners were persecuted by Nazi Government, 276 
Energy Supplies and Resources Policy, Advisory Com- 
mittee on, report to the President, 487 
Enforcement measures for removal of threat to peace, Gen- 
eral As.sembly resolution on logistic support for nation 
unable to equip own forces, 434 
Enochs, Elisabeth S., 318 
Escape-clause procedures : 
Italian criticism, 388, 395 

Report to Congress (Eisenhower) on escape clauses in 
existing trade agreements, 153 
Ethiopia : 

International telecommunication convention (1952), 

ratification, 37 
U.S. military assistance, 724 
U.S. technical and economic aid, 350 
Visit of Emperor Haile Selassie to U.S. (1954) , 256 
Europe : 
Eastern and central, U.S. gifts of food for flood relief, 

138, 419, 726, 847 
Economic growth, rate of falling behind Soviet Union, 

807, 812 
Economic improvement in Western Europe, 12, 81, 167, 

169, 216, 217, 711, 718, 720, 803, 855, 912 
Importance to U.S. of European allies, 216, 270, 681, 682 
Loans to contrasted with loans to other areas, 730, 968 
U.S. economic and military aid, 216, 724 
U.S. troops, no intention of withdrawing, 14, 465 
European Coal and Steel Community : 
Agreement with U.S. amending loan agreement (1954), 

Annual report of member states, 497 
Belgium, proposed import of U.S. coal, 496 
Competitive market, 976 

Secretary Dulles, letter to new President of (Ren6 
Mayer), 997 

European Defense Community : 
Failure of adoption, 43, 124 
Statements (Dulles), 606, 677 
European Migration, Intergovernmental Committee for 

(ICEM), 170, 401, 403, 486, 652, 745 
European Recovery Program (Marshall Plan), 47, 216, 

292, 711, 803, 808 
European Travel Commission, travel promotion campaign, 

742, 743 
Executive orders: 

Administration of Agricultural Trade Development and 

Assistance Act, delegation of responsibilities, 201 
Award of Legion of Merit to foreign military personnel, 

Buy American Act, prescribing procedures under, 50, 658 
Commodity set-asides, delegation of authority for ad- 
ministering, 655 
Director of USIA to be member of Operations Coordi- 
nating Board, 436 
Foreign Operations Administration, transfer of func- 
tions to State Department and Defense Depart- 
ment, 889 
International Cooperation Administration, establish- 
ment of, 890 
Japanese war criminals, amending Executive order es- 
tablishing clemency and parole board, 998 
Jewish Restitution Successor Organization, authority to 
receive unclaimed property of victims of Nazi per- 
secution, 276 
Korea and adjacent waters, termination of combatant 

activities, 90 
U.S. authority and functions in Germany, 792 
Export-Import Bank : 

Loans and credits to Austria, 883 ; India, 654 ; Iran, 696 ; 
Latin America, procedures and volume of loans, 
592, 603, 713, 731 ; Liberia, 232 ; National Power and 
Light Co. of Costa Rica, 604 ; Near East, South Asia, 
and Africa, countries of, 345, 347, 351, (table) 
352 ; Pakistan, 654 
Reorganization (1954), 232 
Semiannual report, 231 

Far East (see also Asia) : 
Addresses and statements: (Dulles), 327, 459, 676; (H. 
Hoover, Jr.), 999; (Morton), 218; (Robertson), 128 
Changes in form of government in, 1000 
Communism, gravity of problem, 5, 8, 131, 219, 460, 483, 

524, 676 
Conference of U.S. chiefs of mission in, 290, 422, 462 
Free world security arrangements under Mutual Secu- 
rity Program, 724, 726 
U.S. relations with countries of (1930-55) , 482 
Farm delegations. See Agricultural delegations 
Farm surplus. See Agricultural surpluses 
Parmer, American, and foreign trade, address (Thibo- 

deaux), 45 
Feed grain, sale to Germany, and purchase in Germany of 
building materials, treaty with Germany, (text) 397, 
Finance Corporation, International, proposal to establish, 
22, 121, 168, 169, 391, 603, 844, 960 

Index, January to June 1955 


Finland : 
Aml)n8Ma(lor (Nykopp), presentaUon of credentials, 214 
Treaties, uicreements, etc. : 
AKrlfulturul surplusi's, with U.S., 814, 1020 
Avintlon, Internatloiiul civil, protocols amending con- 
vention, ratlllcatlon, W5 
Geneva conventions (J'.MO), ratification, 576 
U.S. Ambaiwador (McFall), conllrmed, 113 
Fl»h and flsh products, tariff dut.v on, agreement with 

Canada (1055). ior.3, (text) 1055,1059 
Fisheries : 
Conservation of: 
Conference to study, statement (Nash), in General 

Assembly, (M 
Sumnuiry of U.S. position, 64, 606, 700, 9.36 
U.S. proclamation on, 936 
FretHlom of the seas, relation to, 697, 698, 936, 937 
Great Lakes, treaty with Canada (19.")4), ratiflcation, 

ond treaty (1946), withdrawal. 281, 982 
International Pacific Hnliliut Commission, appointment 

of U.S. member (Madsen), 1061 
Motive for claims to larce areas of high Seas, 700, 936 
Fisheries and Wildlife, Special Assistant to Under Secre- 
tary for, summary of U.S. position on living resources 
of the sea, 696 
FleminInK, -Xrtbur S., Director of Office of Defense Mobili- 
zntinii. authority In respect to Buy American Act, 658 
Flood relief: 

Hollvla. Malfl, Llbyo, 726 

Central and Eastern Kurope, quantity and cost of ship- 

metits. 138. 419, 725. 847 
Nepal, 348, 726 
faklstan, S4X, 319, 726; agreement amending agreement 

(19.'i4), 1.17 
Yugoslavia, 138 
FOA. ftre Foreign Operations Administration 
Fojtik, Jan, Ciechoslnvak border guard, escape into Ger- 
many, U.S. ami Czechoslovak exchange of notes, 736 
Food. Src Agricultural surpluses 
Food and Agriculture Organization (FAO) : 
Ijitln American meeting at Uiienos Aires, 277 
Research by, benefit to U.S. economy, 3.36 
TiThnlcal cooperation with countries having problems 

In f<Mid production, 334 
U.S. contribution to, 3.')2 
Food production. Increase In Asia, 771 
Forcpfl lab..r In Soviet Union and Its satellites and in 
Communist China, statements In General Assemlily 
(Johnson : Green), 99, 106. 292 ; statements by Chinese 
nfflelnls. 100, itr.. 
Ford Ko.indiillon. aid to program for Improvement of 

tearblng In Vlrt'ln Islands. 71 
ForelCT F^.nomlc I'..l|,_v c.mmi.^slon (Randall Coinmis- 

sion) . 3.'.i. anji. nm. (vn. 71.-, ikjo 

For,.|gn forces li, K.^lernl Republic of Germanv. conven- 

tlon on presence of ( UCI). «oo, 74(i_ s26, ttOfi 
Forel,,, MInlslrrs (.rr ah., .M.^-tlng of of Govern- 
mcfii » : 
M«.thH| (nf ihrw.) ,„ pinn j..^ ^nur Power Conference, 
Pc-.|h,i„y „f „„.„„g ,„, ,„,,^^ ..Moments (Dulles), 


Foreign Operations Administration (FOA) : 

Export-Import Bank, agent for FOA, payment to 
Treasury of collections on loans, 232, 696 

Foreisru investments, information on, 22 

Functions, 423, 529, 714, 715 

Regional meeting at Buenos Aires, 277 

Report on exodus of refugees from North Viet-Nam, 222 

Technical cooperation programs, summary of, 720, 840 

Transfer of functions to State Department and Defense 
Department, 714, 715, 889, 911 

Transfer to of Technical Cooperation Administration, 
476, 529, 537, 538 
Foreign policy : 

Agricultural problem of surpluses, relation to, state- 
ments (Eisenhower), 201, 202, 880, 881 

Bipartisanship, addresses: (Dulles), 287, 328, 995; 
( Stassen ) , 803 

Collective security, system of, addresses: (Morton), 
215; (Murphy), 796 

Development of in Near East, South Asia, and Africa 
(1954), article (Howard), 256, 301, 338 

Expressed as broad goal (Dulles), 44, 174, 327, 373, 524 

Mutual security. See Mutual Security Program 

Principles, address before Jesuit alumni (Dulles), 671 

Teacher and, address (Kalijarvi), 1040 

Trade, effect upon, statements: (Dulles), 171, 173; 
(Eisenhower), 753, 754 

Trade-union movement, importance to, address (Mur- 
phy), 84 
Foreign Service (see also State Department) : 

Addresses on career in (Henderson), 635, 849 

Appointments and confirmations, 113, 246, 366, 582, 630, 
786, 865, 906, 982, 1062 

Budget message (Eisenhower), recommendations to 
strengthen, 167, 170 

Consular office, Kuala Lumpur, elevation to Consulate 
General, 906 

Examinations under new program, 320, 852 

Far East, conference of U.S. chiefs of mission, 290, 422, 

Financial needs, statements: (Dulles), 823; (Hender- 
son), 637 

Integration program, progress, 638, (539 

Personnel, Public Committee on. See Public Committee 

Resignatiou of JefCer.son Caffery as Ambassador to 
Egypt, 454 

Scholarships, suggestion of Wriston Committee, 639, 853 

Tributes by : (Dulles), 462, 551, 994, 995, 1014 ; (Nixon), 
592 ; (Luce), 617, 620, 622 
Foreign Service, Toward a Stronger: Report of the Secre- 
tary of State's Public Committee on Personnel, 408, 
409, 539 
Foreign Service Act (1946) : 

Amendment, proposed, hearings before committee of 
Congress, 407 

.\mendments of 1955, enactment into law, outline of 
principal changes, 622 
Foreign Service Inspection Corps, transfer to Office of 

Deputy Under Secretary for Administration, 624 
Foreign Service Institute : 

Beginnings of and plans for, address (Hoskins), 817 
Public Conunlttee on Personnel. See Public Committee 
Reorganization, 639, 851 

Department of State Bulletin 

Foreign Service Institute — Continued 

Transfer to Office of Deputy Under Secretary for Ad- 
ministration, 546, 62-4 
Formosa (see also Cliina, Republic of) : 

Area of, war or peace, statement (Dulles) , 643 

Chinese Communist activity in Straits, 191, 220, 251, 253, 

289, 330, 365, 551, 738, 755 
Chinese Communists, purpose to conquer. See under 

China, Communist 
FOA, funds for harbor construction, 423 
Importance to security of U.S. and other free nations, 
statements (Eisenhower; Dulles), 191, 211, 287, 
329, 525, 1000 
Juridical status, question, 220 

Meeting of President with Secretary of Defense and 
Joint Chiefs of Staff, discussing air and naval forces 
in area of, 213 
President's message to Congress on defense of and joint 
resolution by Congress, 211, (text) 213, 214, 220, 252, 
255, 289, 328, 377, 420, 463, 552 
Seventh Fleet, order (1950) to defend from invasion 

from Communist mainland, 211, 220, 329, 525 
Soviet claim of U.S. intervention in internal affairs 
of China, 253 ; draft resolution in Security Council, 
U.S. commitment to defend: address (H. Hoover, Jr.), 
1000 ; statements (DuUes) , 191, 287, 329, 644 
Four Power Conference. See Meeting of Heads of Govern- 
Fournier, Fernando, credentials as Costa Rican Ambas- 
sador, 957 
France : 

Airlift and ships evacuating refugees from North Viet- 

Nam, 223, 224 
Ambassador to U.S. (Couve de Murville), credentials, 

Communist Party in, 43, 183, 292 
Cyprus case, support of British view, 264 
Meeting of Foreign Ministers of U.K., U.S., and, 759, 

Meeting of Heads of Government (four powers). See 

Non-self-governing territories, reports of visiting mis- 
sions on administration in Cameroons and Togo- 
land, 317, 451 
North Africa, attitude toward events in, 307 
Saar, European status, agreement with Germany, 607 
Treaties, agreements, etc. : 

Austrian state treaty. See under Austria 
Exercise of retained rights in Germany (1954), tri- 
partite agreement, 826 
International telecommunication convention (1952), 

ratifications for Morocco and Tunisia, 1038 
Manila Pact, communique and statement by Council 
meeting of signatories to, 371 ; entry into force, 398 
North Atlantic Treaty, protocol on accession of Ger- 
many (1954), acceptance, 43, 188, 605, 609, 826 
North Atlantic Treaty, status of NATO, representa- 
tives, etc., and status of international headquarters, 
agreement and protocol, ratifications, 281 
Paris agreements, ratification, 43, 80, 183, 609, 826 
Presence of foreign forces In Germany, convention 
(1954), ratification, 826 

Index, January to June 7955 

382901—56 3 , 

France — Continued 
Treaties, agreements, etc. — Continued 

Termination of occupation in Germany, proclamation, 
791; protocol (1954), ratification, 43, 188, 605, 609, 
Tripartite Declaration on Austria (1955), with U.S. 

and U.K., 647, 733, 734 
Tripartite declaration with U.S. and U.K. (1950) , Arab 
doubt of ability to fulfill, 302 
Tripartite note, with U.K. and U.S., to Soviet Union 
on settlement of problems, 832 
Prank, Isaiah, designation in State Department, 282 
Free enterprise : 

American formula, statements (Eisenhower), 119, 731, 

Expanding economy from, statement (Kalijarvi), 974 
Success over collectivist system, address (H. Hoover, 
Jr.), 956 
Freedom of information, address (Cumming) at opening 

of USIS Lincoln Library at Padang, 385 
Freedom of navigation, convention regarding Suez Canal 
(1888), agreement, U.K. with Egn^t (1954), uphold- 
ing, 260, 261, 305 
Freedom of the seas : 
AppUcation to fisheries, 697, 698, 936, 937 
Breadth of territorial waters to be consistent with, 699 
Definition, 934 

U.S. policy to support principle of, 935 
Friendly cooperation, agreement between Turkey and 

Pakistan, 339, 340, 341 
Friendship, commerce, and economic development (1949), 

with Uruguay, protocol supplementing (1955), 982 
Friendship, commerce, and navigation, treaties with : 
Haiti (1955), signature, 452, 453 
Israel (1951) , entry into force, 34uh 
Fulbright Act, educational exchange under, with Austria, 

Chile, and Italy, 604, 619, 666, 1019 
Fur seals of the North Pacific, conference to negotiate a 
treaty to conserve, 785 

Gambia, harbor improvement, technical assistance, 358 
Gas, recommendations for regulation by Advisory Com- 
mittee on Energy Supplies, 488 
GATT. See Tariffs and trade, general agreement on 
Gaza incident, 660, 661, 662, 860, 1016 
General Assembly : 
Ad Hoc Committee on Forced Labor, 99, 106, 107 
British Togoland, resolution (Dec. 14) on ascertaining 

wishes of inhabitants as to future status, 68)1 
Continental shelf and problems of the high seas, reso- 
lution (Dec. 14) requesting International Law Com- 
mission to submit report, 62, (text) 64 
Cyprus case : British contention of likeness of discus- 
sion to intervention, 263 ; debate, 261, 263, 266 
Fisheries, conservation, resolution (Dec. 14) calling for 

conference to study, (text) 66 
Forced labor, resolution (Dec. 17), 109 
Freedom of information, resolution on technical assist- 
ance in field of, 62 
Hostilities, duties of states in event of outbreak of, 
resolution (1950), 343 


General Assembly— Continued 

U,Kl»tlc support. In future cUective action against ag- 

Kressor, to niitlon unable to equip own forces, 434 
Morm-co. n-solutUrti on (Dec. 17), and statements 

( LodKe) , 2<H, •^. 30, 307 
Palestine refuRees. resolution (Dec. 2) extending man- 
date of INRWA for five years, 27 
Peaceful of atomic cnei(.7. President Eisenhower's 
plan (ll»r>3), unanimous endorsement, 272, 421, 804 
Race relations In South Africa, 32, 35 
Tunisia, resolution on (Dec. 17), and Statements (Lodge; 

Wadsworlh). 2!), 30, 31. 307 
Ves-sels detained in waters, resolution rejecting 
Polish charges of U.S. responsibilty. 430 
Geneva conventions (1&49)— prisoners of war; protection 
of civilians in time of war ; wounded, sick and ship- 
wrecked members of armed forces at sea ; wounded 
and sick In armed forces in the field : 
Adherence by Thailand, 281 
Ratltlcntion by Finland and Poland, 38, 576 
Geneva conversations respecting detention of U.S. citizeiiS 

in Communist China, 430, 953 
Genocide, convention on prevention and punishment of 
crime of: 
Albania, accession, 906 
Greece, ratification. 74 
Geophysk-al Year. International, 044, 998 
Geopolitics. 64<i, 047 
George, Walter F., chairman. Senate Foreign Relations 

C!ommlttee, tribute (Dulles), 328 
Gerely, I'iercc J., appointment as Deputy Administrator 

for Refugee Uellef Act. 1062 
German Board of Review. Oil 
German dollar bonds, report of Validation Board (1953- 

54), 139 
Germany : 

Addresses: (Conant), 137, 1034; (Lyon), 183 
Allied High Commission and Land Commissioners, proc- 
lamation abolishing, 791 
Ambassador to U.S. (Krekeler), credentials, 795 
Cartels, statement by ofBcial opposing, 975 
Claims (»ve aUo under treaties, infra), German assets 
In U.S. and U.S. war claims, conversations, 267, 
290. 437 
Economic evolution. 185 

Gifts of statue and drawings to U.S.. letters from Presi- 
dent IleuHs accompanying. 221. 760 
10 Farbenlndustrle AG, deconcentratlon by Allied High 

CommlssUm, 390 
Investments, prewar savings, compensation for hard- 
ship caused by currency reform extended to non- 
residents, 940 
JewUh Restitution Successor Organization, authority 
to receive unclaimed property of victims of Nazi 
IXTsecutlon, 270 
Map. 794 

NATO, admission Into, IRS, 793, 805. 831, 872, 911, 914 
NATO. spBtlnB In Council, 831, 872, 911, 914 
f».rii|.ni|..n Statute, proclamation revoking, 791 
RefuKwd; fr<im communism, number, 5; from East 

Germany, 1H4, ISO 
Rennincatlon. problem of, 180. 1034. 10,36, 1059 
•Hnsr. Eurojienn status, agreement with Prance. 607 


Germany — Continued 

Sovereignty: German statement on attaining. 791; I 

restoration, 464, 605, 666, 911, 914 
Soviet Union, effort to obstruct German entrance into ^ 

united Europe, 187 
Strategic importance to European defense, 12, 517 
Treaties, agreements, etc. : 

Claims, agreement (1955) with U.S. for disposition 
of pursuant to art. I of surplus property payments 
agreement (1953), 1059 
Convention on relations between the Three Powers 

and, entry into force, 791, 792, 793 
Exercise of retained rights in Germany (1954), tri- 
partite agreement, U.S., France, and U.K., 826 
External debts, multilateral (1953), extension by Aus- 
tralia to certain territories, 281; ratification by 
Ceylon, 498 
Feed grain, U.S. sale to Germany, and purchase in 

Germany of building materials, 397, 398 
Income tax, avoidance of double, entry into force with 

U.S. (1954), 37, 38, 113 
North Atlantic Treaty, protocol on accession of Fed- 
eral Republic (1954), entry into force, 545, 605, , 
609, 666, 727, 746, 786, 793, 826, 871 
Offshore procurement, with U.S. (1955), 786 
Organization for Trade Cooperation, agreement on 

(1955), signature, 1058 
Presence of foreign forces in Federal Republic, con- 
vention (1954): accessions, listed, 906; approval, 
U.S., 666, 746 ; ratification by France, Germany, and 
U.K., 826 
Safety of life at sea (1948) , acceptance, 206 
Termination of occupation regime, protocol (1954), 
ratification by France, 43, 188, 605, 609, 826 : Ger- 
many, 746; U.K., 826; U.S. 605n, 609, 666, 727, 746 
Universal postal convention (1952), adherence, 746 
United States and Germany: 19^5-55, 1020 
U.S. Ambassador (Conant), confirmation, 8G5 
U.S. authority and functions in, Executive order, 792 
U.S. contribution toward arming, 711 
U.S. gift of food for flood relief, summary of shipments, 

U.S. position on negotiations dealing with territory or 
rights of, 642 
Germany, East Zone : 
Road tolls, drastic increase in, letters between High 
Commissioner Conant and Soviet High Commis- 
sioner Pushkin, (V4S, 736, 834 ; tripartite communi- 
que by U.K., French, and U.S. Ambassadors, 997 
U.S. gift of food for flood relief, summary of shipments, 
Goedhart, Dr. van Heuven, 652 
Gold Coast, independent status, 67 
"Good partner" concept of President Eisenhower, 44, 86, 

126, 128 
Goodklnd, Louis W., designation in State Department, 282 
Gowen, Franklin C, Consul General at Geneva, talks with 
Chinese Communists on release of detained U.S. na- 
tionals, 9.'>3 
Grants and credits: 
Latin America, liberalized to, 592, 603, 604, 713, 731 
Ivoans preferable to grants, 523, 591, 592, 603, 604 

Department of State Bulletin 

Grants and credits — Continued 

Xear East, South Asia, and Africa, countries of, 169, 
338, 339, 345, 347, 349, 350, 351 
Great Lakes flslieries, treaty with Canada (1954), ratifi- 
cation, and treaty (1946), withdrawal, 281, 982, 1059 
Greece : 

Cyprus, status of, statements in General Assembly, 262, 

263, 266 
Economic and political conditions, 217, 344 
NATO, membership, 342, 343, 839 
Treaties, agreements, etc. : 
Commercial samples and advertising material, con- 
vention to facilitate import, ratification, 498 
Genocide convention (1948), ratification, 74 
North Atlantic Treaty, accession of Germany (1954), 

NATO, agreement on status of, national representa- 
tives and staff (1951), signature, 866 
Offshore procurement, agreement (1954) with U.S., 

agreements pursuant to, 74, 1059 
Plant protection convention (1951), adherence, 113 
Tripartite Balkan pact (1953 ; 1954) with Turkey and 
Yusoslavia, 339, 342, 839 
U.S. defense support, 338, 712, 720 ; reduction of defense 

support, 344 
U.S. development assistance, 344 
U.S. military aid, 339, 724 
Green, James F., statements in General Assembly on 

forced labor, 108 
Greenland, status as integral part of Denmark, 68 
Gromyko, Andrei A., Soviet First Deputy Foreign Minis- 
ter, view of Western position on disarmament, 627 
Gruenther, Gen. Alfred M., Supreme Commander, Allied 
Powers Europe, statements : 
European defense, 515 
NATO (1954), 512 
Guaranties. See Investment guaranties 
Guatemala : 

Caracas declaration, adherence to by new government, 

Communism, conditions under, 217, 218, 590, 593, 594, 

Communist conspiracy, overthrow of and establishment 

of new government, 43, 217, 218 
Treaties, agreements, etc. : 
Charter of OAS, ratification, 666 
Inter-American treaty of reciprocal assistance (1947), 

ratification, 666, 729 
Investment guaranties, with U.S., 702 
Nonimmigrant visas, with U.S., 281 
Trade agreement, question of escape clause, 153 
U.S. Ambassadors (Armour; Sparks), confirmation, 113, 

U.S. economic and technical cooperation programs and 

development assistance, 718, 721, 722 
U.S. military assistance and negotiations for agreement, 
724, 1019 
Guided missiles, long-range proving ground, agreement 
with U.K. (1950), negotiations to extend range, 44 

Hagerty, James C, press secretary to the President, state- 
ment on rejection by Albania of U.S. offer of food, 

\ndex, January to June 1955 

Hahn, Mrs. Lorena B., statements In U.N. Commission on 
world progress in improving status of women, 777 
Haiti : 

Address before joint session of Congress by President 

Magloire, 273 
Communism, efforts to eliminate, 274, 275 
Hurricane aid from U.S., 275, 726 
Treaties, agreements, etc. : 

Cooperative programs, agreements with U.S., in 
agriculture (1955), education (1954), and health 
(1955), 366, 453, 826, 906 
Emergency assistance in hurricane disaster, with U.S. 

(1955), 702 
Friendship, commerce, and navigation, with U.S. sig- 
nature, 452, 453 
Inter-American cultural relations (1954), ratification, 

Military assistance, with U.S. (1955), signature, 244, 
Hammarskjold, Dag, Secretary-General of U.N. : 

Efforts for release of U.S. military personnel of U.N. 
Command held in Communist China, 122, 268, 429 
Report to Secretary Dulles on mission to Peiping, 189 
Tribute by Ambassador Lodge, 953 
Hampton Institute-Ford Foundation, program for im- 
provement of teaching in Virgin Islands, 71 
Hartman, Douglas W., American member of Validation 

Board for German Dollar Bonds, 139, 140, 146 
Hatters' fur, continuation of rate of duty, 657 
Hawaii, foreign aid trainee program, 72 
Health : 

Cooperative progi'ams, agreements with Bolivia, 746, 

866 ; Brazil, 866 ; Costa Rica, 1059 ; Haiti, 366, 453 ; 

Honduras, 1059; Nicaragua, 826; Paraguay, 906; 

Peru, 1020; Venezuela, 1020 

Near Eastern students of public health in U.S., 766 

Heath, Donald R., confirmation as U.S. Ambassador to 

Lebanon, 366 
Heavy water, request by India to purchase, 396 
Helmand River Valley, loan to Afghanistan by Export- 
Import Bank for development, 347 
Henderson, Loy W. 

Addresses, statements, etc. : 
Foreign Service, 635, 849 

Foreign Service Act, before committee of Congress, 
Designation in State Department, 320 
Iranian oil dispute, settlement of, part in as U.S. Am- 
bassador, 257 
Hendrickson, Robert C, confirmed as Ambassador to New 

Zealand, 246 
Hensel, H. Struve, statement on free labor and offshore 

procurement, 229 
Heuss, Theodor, President of Germany, letters to Presi- 
dent Eisenhower accompanying gifts to the American 
people, 221, 766 
High seas : 

Coastal states, attempts to appropriate areas of, 700, 

935, 937, 938, 939 
General Assembly resolution requesting International 
Law Commission to submit report on problems of, 
62, 64 


IIlRh sen*— Continued 
Inierfi-rence with flslilng. on claim of territorial waters, 
lllshwayii convontlon. with Panama (1050), ratlflcatlon, 

71)0. 70'.', 740 
Hill. Robert C. confirmation as Ambassador to El Sal- 
vador. 113 
History of Sintp Dt'iMirtnient (in30-.''j5), Rrowth In func- 
tion* unci renixinslblllties, in two parts, 470, 528 
Holland, Henry F.. addresses: 

OAS action In Costa Itlcan conflict, 178 
D.S. relations with other American Republics, 598 
HoUlster. .lolin B., couflrmed as director of the Interna- 
tional Cooperation Administration, 012, 1062 
Holmes, Julias C, defllgnatlon in SUte Department, 74 
Hondnras : 
AnihaiiBador to U.S. (Izagulrre Valladares), credentials, 

Claim to extended territorial waters, 935, 939 
Political conditions, address (Nixon), 589, 594 
Treaties, acreement.s, etc. : 
Cooperative programs, with U.S., in agriculture, edu- 
cation, and health (1055), 944, 1059 
Inter-Ainorlcan Highway In, agreement (1955), 

amending aBre«>ment (19-12), 1059 
Relief supplies, duty-free entry and defrayment of 

Inland transportation, with U.S., (560 
Trade agreement, question of escape clause, 153 
Hoover, Herbert, Jr. 
Addresses : 
Economic aspects of Cold War, 954 
Far East policy, 009 
Message as Acting Secretary of State to president of 

Hungarian National Council (Varga), 558 
Settlement of Iratiian oil dispute, part In as consultant 
In State Department. 257 
Hoover Commission, 470, 474, 533, ."534, 537 
Hosklns, Harold U. : 
Address on search for qualified personnel, 816 
Appointment as director of Foreign Service Institute. 

Hostilities, armed. In area of Chinese offshore islands, New 
Zealand refjiicst for discussion In Security Council 
Z'l. 253 
Hotchkls, lYeston, U.S. representative In ECOSOC, state- 
ments : 
IndaHtriall7.ntlon In underdeveloped countries, 857 
Travel. Increasing Intornatloiial. 741 
Bottel, Mrs. Althea K., conflrmntion ns U.S. representative 

on Soiinl ConiiiilKoion of ECOSOC, 815 
Honghlon. Mrs Dorothy D.. deputy director of FOA, article 

on RMlstanre to escapees, 415 
Hownrd. Marry N.. article In three parts, on development 
of VM policy In Near East. S<mth Asia, and Africa 
«lfK%4l. 256. 301. 338 
Human rights: 
Fortxtl labor. Sm Foroe<l Inhor 

lUr^ connict In Sonth Africa. quPKtIon of competence of 
Ocn-ril Awembly because of domestic jurisdiction 
32. 85 
Hnngary ; 
lUlloon leaflet- rele,*^ by Crusade for Freedom and 
Kadln Freo Euro|». text of U.S. note, 14 


H unga ry — Continued 
Forced labor in, 105 
Independence Day, message by Acting Secretary Hoover 

to the Rt. Rev. Bela Varga, 558 ^ 

Peace treaty, rights under cited in U.S. note, 15, 16 
U.S. sift of food for flood relief, 419 
Hyde, Dr. H. van Zile, chairman of 15th session of Execu- 
tive Board of World Health Organization, 112 

ICA. See International Cooperation Administration 
Iceland, acceptance. North Atlantic Treaty, protocol on 

accession of Germany, 545 
ICEJI. See Intergovernmental Committee for European 

Ichinng Island, seizure by (Hiinese Communists, 191, 211, 

251, 252 
Ideological struggle, communism vs. freedom, need for in- 
telligent look at world, address (Eisenhower), 609 
IG Farbenindustrie AG, deconcentration by Allied High 

Commission, Germany, 396 
ILO. See International Labor Organization 
Immigration and Nationality Act (1952), review of effect 

of, 1047, 1048, 1049 ^ 

Immigration and Naturalization Service, Chinese students, 

departure of, reexamination of cases, 627 
Immigration today, address (Auerbach), 1047 
India : 
Communism, lack of success in, 8 
Cyprus case, opposing Greek proposal, 265 
Emergency food loan (1951) , interest on used for educa- 
tional exchanges and interchange of books, 307 
Heavy water, request to purchase, 396 I 

Treaties, agreements, etc. : 
Air transport services, agreement with U.S. (1946), 

terminated, 157 
Aviation, international civil, protocols amending con- 
vention, ratification, 545 
Customs facilities for touring ( 1954) , signature, 545 
Parcel post agreement (1954) , with U.S., 866 
U.S. Ambassador (Cooper), confirmation, 366 
U.S. development assistance, grants and credits, 339, | 

6,54, 722, 840 
U.S. offer of military assistance, 341 
U.S. technical and economic aid to : 
Hearings before committee of Congress, testimony 

(Allen), 349 
Projects undertaken, 350, 522 
Indian Credit and Investment Corporation, 350 
Indian National Service Extension, assistance by U.S. 

technicians, 3.50 J 

Indochina (see also Cambodia ; Laos ; Viet-Nam) : ' 

Military situation (1950), relation to Korea, 378 
U.S. security, relation to, 218 
Indonesia : 

Communism, lack of success in, 8 

Lincoln Library, Padang, address by Ambassador Gum- 
ming at opening, 385 
Western New Guinea, negotiations with Netherlands 
on status of, 271 
Industrial propert.v. See Patent rights 
Industrialization in underdeveloped countries, problems 
of, statement (Hotchkis), 857 

Departmenf of Stale BuUelin 

Information, freedom of: 

Technical assistance in field of, U.N. resolution, 62 
Weapon for peace, statement (Johnson) in General 
Assembly, 5S 
Information Agency, U. S. : organization; 436, 476, 535, 

537 ; overseas program, 170, 599 
Informational media guaranty program, agreements 
with — 
Chile, 313 
Egypt, 545 
Philippines, 545 
Institute of Inter-American Affairs, 714 
Institute of International Education, 487, 695 
Insurance, non-occupational, for Mexican workers for in- 
juries and illnesses, exchange of notes with Mexico, 
Interagency Committee on Agricultural Surplus Disposal, 

establishment, 201 
Inter-American Commission of Women : 
Meeting in Puerto Rico, 6.51, 1017 
Origin of, G51 
Inter-American Conference, 10th, at Caracas, declaration 

of Caracas. See Caracas Declaration 
Inter-American Conference on Social Security, session at 

Caracas, 545 
Inter-American cultural relations, promotion of, multi- 
lateral convention (1954), ratification by Haiti, 49S 
Inter-American Economic and Social Council : 
Programs, 731 

World coffee situation, resolution for study of, 943 
Inter-American Economic Conference, 729, 731, 743 
Inter-American Highway : 

Completion, desirability of hastening, statements 

(Nixon), 592, 596; (Holland), 603 
Map, facing 596 

President Eisenhower, letters to Vice President Nixon 
and Spealser Rayburn on desirability of completion, 
Inter-American Highway in Honduras, agreement with 
Honduras (1955), amending agreement (1942), 1059 
Inter-American Investment Conference, 439, 599 
Inter-American Treaty of Reciprocal Assistance (Rio 
Pact) ; 
Central American situation, invoked in case of, 131 
Costa Rica, appeal under, 179 
Guatemala, ratification, 666, 729 
Outline of, 504 

Prototype for Manila Pact, 729 
Intergovernmental Committee for European Migration 
(ICEM) : 
Accomplishments of, 745 
Air flights booked by, 486 
Budget recommendations (Eisenhower), 170 
Condition of refugees, 652, 653 
Constitution (1953) in force for listed states, 746 
Report of 8th session, 401, 403 
International Atomic Energy Agency, to devise methods 
to serve peaceful pursuits : 
Negotiations for, 421, 690, 692 
Proposal (Eisenhower), 336 
Recommendation, General Assembly, 272 

International Bank for Reconstruction and Development 
(IBRD) : 
Czechoslovakia, ceased membership, 439, 453 
International Finance Corporation, new aflBliate, an- 
nouncement, 845, 060 
Israel, member, 439 

Loans to Australia, 562 ; India, 350 ; Latin America, 713 ; 
Near East, South Asia, and Africa, countries of, 
348», 350 ; table, 353 
Report for six-month period, 439 
Studies and surveys in Near East, 765 
U.S. contribution to, 353 
International Building Exhibit, plans, 767 
International civil aviation convention (1944) : 
Adherence by Laos, 1058 

Protocols amending with respect to sessions and seat, 
list of ratifications, 545 
International Civil Aviation Organization, program to 

facilitate travel, 742 
International Commodity Trade, Commission (of 
ECOSOC) on; 
Study of price fluctuations and price relationships. 111 
U.S. not to participate. 111, 279 
International Conference on Peaceful Uses of Atomic 
Energy, 234, 272, 314, 315, 336, 444, 450, 804, 861, 1016 
International Congress on Large Dams (5th), U.S. dele- 
gation for session at Paris, 981 
International Cooperation Administration; 
Establishment, 714, 716, 803, 890, 912 
HoUister, John B., confirmed as director, 1062 
International Cotton Advisory Committee, agenda and 

delegates for meeting at Paris, 883, 1060 
International Council of Scientific Unions, 644 
International Court of Justice : 
Corfu Channel case (1949), cited, 699 
Norwegian fisheries case, judgment quoted, 936 
U.S. proceedings against Czechoslovakia in the case of 
destruction of U.S. aircraft, 648; text of applica- 
tion, 649 
International Finance Corporation (IFC) : 

President's message to Congress recommending partici- 
pation, 121, 844, 960 
Proposal to establish, 22, 121, 168, 169, 391, 603 
International Geophysical Year (1957-58), U.S. participa- 
tion in plans, 644, 998 
International Joint Commission (U.S. and Canada), pro- 
posal for regulating water levels on Lake Ontario, 563 
International Labor Conference, agenda and U.S. delega- 
tion for session at Geneva, 980, 981 
International Labor Oflice, Governing Body, sessions, 365, 

International Labor Organization, Chemical Industries 

Committee, 4th session, Geneva, 319 
International Law Commission : 
Continental shelf, draft articles on, statement (Maho- 

ney ) , in General Assembly, 62, 64, 938 
Fisheries, report showing inadequacy of existing inter- 
national agreements to conserve, 64, 698, 937 
Territorial sea, draft articles on regime of, question of 
breadth of, U.S. views, 64, 699, 936 
International Monetary Fund (IMF), Czechoslovakia, 
ceased membership, 453 

Index, January to June 1955 


International I'ncltlc Halibut Comtnission, appointment 

of r.S. moraber (Mndsen), 1061 
International Social Service, American Branch, 486 
International sugar agreement (1953), 666 
International Telecommunication Union, convention 
( im"). revision (l!ri2), U.S. ratification, 442, 702, W4 
International Union of Biological Sciences, 12th General 

Aswaibly, 629 
Intervention in Interniil affairs of China, Soviet accusa- 
tion acalnst U.S., In letter and draft resolution, to 
Security Council, 253, 254; reply by Ambassador 
I»dge. 252 
Intervention in Internal affairs of Israel, U.S. denial of 

Interference, 302 
lolervention in Internal affairs of U.K., discussion amount- 
ing to intervention, British contention in General 
Assembly in Cyprus, 263 
Investment, Otllce for Foreign, established in Commerce 

Department, 848 
lovestment guaranties, as authorized by Mutual Security 
Act ( ll>.'»4 ) , exchanges of notes with : Costa Rica, 
K«): F.<iuuior, OtK!; Guatemala. 702; Pakistan, 982, 
1018 : Pern, 786 
Investment of private capital abroad : 
Asiatic area, 523, 723 

Benefits of, statement (Straus) in General Assembly, 19 
Confidence essential, statements : (Holland), 602 ; (Nix- 
on), 501; (Straus), 21 
Importance of, 800 
I-atin America,, (Holland), 602; (H. Hoover, 

Jr.), 9.-)0; (Nixon), 591 
OEEC. repcjrt, Private V.S. Investment in Europe and 

the Overseas Territories, 137 
Philippines, 937 

President's messages, 121, 168, 391, 813 
Propose<l measures to encourage, 602 
Itelnvestment, 20 
U.S. efforts to encourage, 844, 845 

World Bank, announcement of new affiliate, IFC, and 
Its obJi>ctlve. 845, 81C, 960 
Inrrslmcnl Opportunities Abroad, 848 
lown State Collcgo, Soviet farm delegation, arrongements 

for tour, 933 

Agreement with Oil Consortium respecting production 

of oil, 257 
Communist position erased, 43, 094 
Oil, revenues nsecl for economic development, 763 764 
on. m.ttlo,„ent of AnKl.,-Ir»nlan dispute and political 

ultimtlon. 217. 2.'i7, 370. 091 
Prc>-S<.vl.t activity In, 215 
Shah and Foreign Minister, statements on settlement 

of Anglo-Iranian oil controversy, 250 
8hob. TlRlt to U.S. ( 19.71 ) . IJ.'HJ 
«hnirii decree, turning bind over to peasants. 70;5 
TrentlcK, ngre^Mnents, etc.; 

Internntlonul It|. o Comndssl.m, amended constitution 

nml ruleii of prore<lure. acceptance 313 
Military ml«ion with U.S. (19.-5), extending previous 

agrwinent ( in.'iO), (no. 7'j.|, g-'V.! 
C.H. AmboR»nd»r (Chapin), confirmation. 082 

Iran — Continued 

U.S. defense supiwrt and economic support, 712, 765, 

U. S. grant and loan assistance, 169, 696, 722 
U.S. technical cooperation and development assistance, 
339, 345, 696, 718, 763, 765, 840 
Flood control, on Tigris, 765 

Land, projects for settlement of landless peasants, 763 
Oil revenues, largely used for economic development, 

Treaties, agreements, etc. : 

Mutual defense assistance agreement with U.S., 339, 

341, 724, 839 
Protocol (1953) amending slavery convention (1926), 

acceptance, 1058 
Technical coojieration program of community welfare, 
with U.S. (1955), replacing agreement (19.52), 702 
Turkey, mutual defense treaty (1955), 339«., 712, 839 
U.S. technical aid, 345 
Ireland : 
Treaties, agreements, etc. : 
Aviation, international civil, protocols amending con- 
vention, ratification, 545 
Counterpart special account, agreement with U.S 

governing disposition of balance in, 398 
Plant protection convention (1951), ratification, 982 
Iron Curtain, number of escapees, 415, 418 
Irrigation, transportation, and industry, cooperative pro- 

gi-am, with Peru (1955), 1059 
Ismay, Lord, Secretary General of NATO : 
Excerpt from report on NATO, The First Five Tears, 

Exchange of messages with Secretary Dulles on NATO 
anniversary, 685 
Israel (see also Israeli-Egyptian; Near East; Palestine) : 
Armistice Demarcation Line between Egypt and, tension 

near, 860 
Border incidents, 303 
Compensation or repatriation to Arab refugees, attitude 

of Israel, 25 
Domestic affairs of, U.S. denial of interference in, 302 
I-l\pansi(inist Zionism, Arab fear of, 302 
Jerusalem, violence in, U.S. attitude, 304 
Jordan Valley, sharing of waters with Arab States 

(Johnston plan), 346, 765 
Member, World Bank, 439 

Peace with Arab States, U.S. attitude, 93, 301, 303 
S.S. Bat Galim, case of, 110, 305 
Suez Canal, and Gulf of Aqaba, complaint of Egyptian 

restrictions on shipping, 110, 305 
Tensions with neighboring states, 567, 568, 712 
Treaties, agreements, etc. : 
Agricultural surpluses, with U.S. (1955), 815, 826 
Atomic energy, initialing of agreement with U.S. 
(1055) for cooperation in research in peaceful uses 
of, 1018)1 
Copyright, universal convention and protocols (1952), 

ratification, 906 
Egyptian-Israeli general armistice agreement (1949), 

Friendship, commerce, and navigation with U.S. 
(1951), entry into force, 34.5m 

Department of Stale Bulletin 

Israel — Continued 
Treaties, agreements, etc. — Continued 

Jordan-Israel armistice agreement (1949), 303, 304 
Nortli Atlantic Ocean stations (1954), 576 
Road trafHc convention (1949), ratification, 545 
Slave trade and slavery (1926) , accession, 545 
Special economic assistance (1953), with U.S., agree- 
ment amending (1955), 498 
U.S. economic and technical aid and development as- 
sistance, 339, 345 
U.S. grant and loan assistance, 169, 339 
U.S. policy, statements : (Byroade), 301 ; (Eisenhower), 

U.S. soil conservation expert, 307 
Israel-American Friendship Iieague, at Tel Aviv, address 

(Lawson), 92 
Israel-Jordan Mixed Armistice Commission, 303, 304 
Israeli-Egyptian clash in the Gaza strip, 659, 660, 661, 

662, 860, 1016 
Israeli-Egyptian Mixed Armistice Commission, 305 
Italy : 

Ambassador to U.S. (Brosio), credentials, 295 

Atomic energy, exchange of information with U.S. in 

field of peaceful uses, 615, 619 
Communism in, strength of, 133, 292, 616 
Current situation, address (Luce), 132 
Economy of, addresses (Luce), 134, 176 
Exports to U.S., problems confronting, 395 
NATO Council, declarations on Italian part in Euro- 
pean cooperation, 831 
Trade relations with U.S., exchange of memoranda, 392 
Treaties, agreements, etc. : 

Agricultural surpluses, with U.S. (1955), 1020 
Aircraft, arrangement with U.S. relating to admission 
of and acceptance of certificates (1931), termina- 
tion of Art. 9, 313 
Aircraft, certificates of airworthiness, agreement with 

U.S. (1954; 1955), 313 
Atomic energy, initialing of agreement with U.S. 
(1955) for cooperation in research in peaceful uses 
of, lOlSn 
Counterpart lira industrial loan fund, continuing use 

of, with U.S., 396, 498 
Defense support aid, with U.S. (1955), 395, 498, 720 
Double taxation conventions, with U.S., taxes on in- 
come and on estates, 614, 630 
Educational exchange, with U.S., 619 
North Atlantic Treaty, protocol on accession of Ger- 
many (1954), acceptance, 465, 746 
NATO, agreement on status, national representa- 
tives, and international staff, ratification, 498 
Paris agreements, ratification, 465, 609 
Trieste, memorandum of understanding, with U.S., 

U.K., and Yugoslavia, implementation, 216, 235 
U.S. loan of two submarines. Bari and Dace, ex- 
change of notes with U.S., 38 
Trieste, settlement of problem of, 400 
Visit to U.S. by Prime Minister Scelba and Foreign 
Minister Martino, 612, 615 
Izaguirre Valladares, Carlos, credentials as Honduran 
Ambassador, 795 

Jackson, C. D., U.S. Representative in General Assembly, 
economic and social progress in non-self-governing ter- 
ritories, statement, 69 
Jacobs, Joseph E., confirmation as Ambassador to Poland, 

Japan : 
Assets in U.S., conversations on, 438 
Communism, lack of success in, 8 
Economic and political problems, 811, 1045 
Economic situation, address (H. Hoover, Jr.), 1001 
Member Colombo Plan, 17 

Proce.s- verbal (1955) extending declaration (1953) on 
commercial relations between parties to GATT and 
Japan, signatories listed, 1058 
Trade, necessity for, 129, 1001, 1045, 1051 
Trade-agreement negotiations, supplementary notice, 

359, 362, 363 
Treaties, agreements, etc. : 

Agricultural surpluses, agreements with U.S., entry 

into force, 204, 957, 1020 
Compensation for damage as result of U.S. nuclear 
tests in Marshall Islands, U.S. and Japanese ex- 
change of notes, 90, 206 
Customs facilities for touring ( 1954) , signature, 37 
Customs on private road vehicles, temporary importa- 
tion (19.54), signature, 37 
Double taxation, conventions for avoidance of with 
respect to taxes on estates and on income, with 
U.S. (1954) , 498, 665, 666, 702 
Loan of U.S. naval vessels, proc^s-verbal providing 

for annex to agreement for, 282 
Military equipment, arrangement relating to furnish- 
ing, pursuant to mutual defense assistance agree- 
ment, with U.S. (1955), 244 
Mutual defense, with U.S., 80, 129, 328, 377, 459, 524, 

954, 1000 
Tariffs and trade, general agreement on : negotiations 
toward participation by Japan, 129, 706, 812 ; par- 
ticipation in on provisional basis, 495, 496, 706 ; pro- 
tocol of accession and decision agreeing to accession, 
1051, (tests) 1053 and 1055, 1059 
Technical cooperation agreement, to raise productiv- 
ity, with U.S. (19.55) , 701, 982 
Vested assets in U.S., conversations, joint statement by 

U.S. and Japanese delegations, 848 
War criminals. Executive order amending Executive 
order establishing clemency board, 998 
Japanese-American orphans, admission to United States, 

Jenkins, Alfred le S., article on China and the stakes in 

Asia, 3 
Jernegan, John D., address on Middle East defense, 564 
Jerusalem : 

Internationalization of, protest by Arab States at pres- 
entation there of Ambassador Lawson's credentials, 
Violence between Jordan and Israel, U.S. attitude, 304 
Jewish Restitution Successor Organization, designated by 
Executive order to receive unclaimed property of 
victims of Nazi persecution, 276 

Index, January to June 1955 


John«on. A. M. Ade. VS. representative to General As- 
■enilily, utatenientH : 
Forcwl labor In Soviet Union and sntellltes, and In 

('omiimiil.<i( Cliliui. W 
Kr«^e<loiii of Informiitton, 58 
Greenland, new 8tatu8 of, 08 
Johnatnn. ErU-, the I'resldciifs Tersonal Representative in 
Near Ka»t, report to I'rosldent nnd Secretary of State 
on BtiltiKlc of Interested states in sharing Jordan 
wott-ra, 25, 310 
Johnston, Senator Olln D., Inquiry as to security status 
of State I»epartinent employees nnd reply by Assistant 
Secretary Morton, 245 
Joint Chiefs of Staff: 

I'ersonnel strciiRths, discussions with the President and 

Secretary of Defense, 87 
Itecnnimenilations on military assistance, 166 
Joint Committee on Atomic Energy, 686 
Jones, Klchard Lee, ccmflrmed as Ambassador to Liberia, 

Jordan : 

Border Incidents, U.S. attitude, 303 

Jerusalem, violence In, U.S. attitude, 304 

Plan for Jordan Valley development, attitude, 346 

Treaties. nKreenients, etc. : 

Israel-Jordan armistice (1949), 303, 304 
Kellef suippUes. duty-free entry and defrayment of 
Inland transp<irtatlon, with U.S., 786 
U.S. development assistance, 339, 722 
U.S. Krnnt and loan assistance, 169, 339 
U.S. te<'hnlcal and economic aid, 345, 765 
Jordan River Valley, International sharing of waters by 
Jordan. Ix-banon, Syria, and Israel (Johnston plan), 
2."., 20, 346, 705 
Junior Chamber of Commerce of Southeast Asia, aid to 
refuRcea from North Vlet-Nani, 227 

Kalljarvl, Thorsten V.: 
Antitrust policies and forelpi trade, statement, 074 
Foreign policy and the teacher, address, 1040 
Relative power positions of free world and Soviet bloc, 
article, 800 
Key, Davl.l S!cK., Assistant Secretary for International 
OrKnnl/atlon Affairs, addresses: 
American citizen and U.N., 333 
Current problems In U.N., 208 
Educational exchanRc. role of U.S. Government, 381 
United Nations, achievements, 466, 768 
KlmlH-l, William A.. U.S. representative at session of ECE 

Knight^ Mlw. Frances G., designation In State Department. 

Kocher, Eric, nomination as Consul General at Kuala 

I.iimpur. (Kifl 
Kon-n err alto Korean Armistice) : 

D«to of tennliiallon of oombntnnt activities, 90 

Economy, Improvement In. 299 

Ti-rrltoHnl wntprn, rlolm. Ita'. 

'^^' • "lents, etc.: 

^on.lusem with U.S. (1955). entrv into 
. : <:. IKB 
Kc^m^.ld. U.S.. continuation of, agreed minute. 


Korea — Continued 

Treaties, agreements, etc. — Continued 
Initial financial and property settlement agreement 

(1948), with U.S., 296 
Loan of U.S. naval vessels, with annex (1955) , 498 
Mutual defense, with U.S., 44, 80, 129, 328, 377, 459, 

524, 724, 726, 954, 1000 
Relief supplies, agreement with U.S. for duty-free 

entry and inland transportation, 906 
Telecommunication convention, international (1952). 
final protocol, and additional protocols, ratification, 
Universal postal convention (1952), ratification, 746 
U.S. defense support and aid in reconstruction, 296, 718, 

U.S. economic assistance (1945-54), article, 296, 300 
U.S. military assistance and direct forces support, 167. 
296, 712 
Korea, Civil Assistance Command, channel for aid to 

Korea, 297, 298 
Korean Armistice : 
Communist violations, 426, 552 

U.N. Command personnel held prisoner in violation of, 
Korean war (1950) : 
Due to Soviet misinformation furnished to Kremlin, 

address (Stassen), 805 
Failure of Communist aggrression, 6, 8, 292, 420, 769 
Relation to Indochina, 378 

Soviet promotion of aggression, statement (Dulles), 327 
Kotelawala, Sir John, Premier of Ceylon, visit to U.S., 256 
KreUeler, Heinz L., German Ambassador : 
Conveys gift from German people, 221 
Presentation of credentials, 795 
Remarlcs on depositing accession to NAT, 793 
Kuala Lumpur, Malaya, elevation to Consulate General, 

Labor : 
Forced labor in Soviet Union and satellites and in Com- 
munist China, statements in General Assembly 
(■Tohnson; Green), 99, 106 
Foreign affairs, concern with, address (Murphy) , 84 
Offshore contracts to be placed where free labor benefits, 
Lalce Ontario, proposal by International Joint Commission 

for regulating water levels, 563 
Communist aggression and subversion, 218, 420, 400 
Secretary Dulles, visit to, 332, 461 
Treaties, agreements, etc. : 
Aviation convention, international civil (1944), ad- 
herence, 1058 
Manila Pact, measure of participation in, 372. 378, 

379, 4.'".9, 726 
Plant protection convention (1951), adherence, 630 
World Meteorological Organization (1947), accession, 
U.S. defense support, 51, 169, 720 
U.S. economic and technical assistance, FOA program, 

Vlet-Nam, differences, 379 

Department of State Bulletin 

Latin America: 
Addresses and statements: (Eisenhower), 713; (Hol- 
land), 598; (Nixon), 587 
Claims of certain states to territorial -waters In excess 
of three miles, to continental shelf, and to its sea, 
935, 937, 938, 939 
Coffee trade, importance to, 941, 912 
Communism, Caracas declaration against, 43, 79, 215, 

217, 376, 588, 600, 729, 730, 770, 994 
Communist problem in, notably Guatemala, 484 
Economic situation, address (Kalijarvi), 808 
Editors and publishers, U.S. tour under educational ex- 
change program, 440 
FOA meeting at Buenos Aires, 277 
Loans to : 
Contrasted with loans to Europe, address (Dulles), 

730, 968 
Export-Import Bank, increase in, 731 
Preferred to grants, 523, 591, 592, 603, 604 
Technical cooperation programs, accomplishments, 713 
U.S. relations with countries of, ( 1930-55) , article, 483 
Lawson, Edward B., address at Tel Aviv before Israel- 
American Friendship League, 92 
Lebanon : 
Atomic energy, initialing of agreement with U.S. (1955) 
for cooperation in research in peaceful uses of, 
Jordan Valley development, attitude toward plan for, 

Litani River Basin project, U.S. aid, 764 
U.S. Ambassador (Heath), confirmation, 366 
U.S. development assistance and economic aid, 339, 346, 

722, 765 
U.S. grant and loan assistance, 169 
U.S. technical aid, 346, 765 
Legion of Blerit : 

Award to foreign military personnel (Ex. Order 10600), 

Citation of award to Field Marshal P. Pibulsonggram of 
Thailand, 841 
Legislation, foreign policy, listed, 98, 153, 232, 280, 387, 

443, 573, 658, 805 
Lend-Lease Act, vessels of U.S. Navy loaned to U.S.S.R. 
under, number returned and agreements (1954; 1955) 
for return, 52, 113, 969, 1060 
Liberia : 
Loan from Export-Import Bank for highway construc- 
tion, 232 
U.S. Ambassador (Jones), confirmation, 9S2 
U.S. technical assistance, including correction of shore 

erosion endangering harbor, 350, 358 
Visit of President Tubman to U.S. (1954) , 256 
Libya : 
Ambassador to U.S. (Muntasser) , credentials, 840 
Embassy status, 351 
Treaties, agreements, etc. : 

Base agreement, with U.S. (1954) , 351 
Economic aid, with U.S., for development assistance 
and grain for relief, 339, 351 
U.S. Ambassador (Tappin), confirmation, 246 
U.S. emergency shipment, 726 
U.S. grant and loan assistance, 169, 351 
U.S. technical assistance, 350 

Index, January to June 1955 

Libya — Continued 

Visit of Premier Ben Halim to U.S. (1954), 256 
Licensing fees on munitions imports and exports, effec- 
tive date, 51 
Lippmann, Walter, quotation on power of mass opinion in 

democracy, 1041 
Litvinov, Maxim M., exchange of notes with Franklin D. 
Roosevelt (1933) on rights of U.S. nationals in Soviet 
Union respecting religious liberty, 425 ; Soviet viola- 
tion, 424 
Liu Shao-chi, spokesman for Chinese Communists, 127 
Loans, U.N. See International Bank for Reconstruction 

and Development 
Loans and credits (see also Export-Import Bank) : 
Austria, 883 

European Coal and Steel Community, agreement amend- 
ing loan agreement, 38 
India, 6.54 
Iran, 696 
Latin America, procedures for and volume of loans, 591, 

592, 603, 604, 713, 731 
Liberia, 232 

National Power and Light Co., of Costa Rica, 604 
Near East, South Asia, and Africa, countries of, 169, 

339, 345, 346, 347, 349, 351, 696 
Pakistan, 349, 654 

Preferable to grants, 523, 591, 592, 603, 604 
Lodge, Henry Cabot, Jr. : 
Addresses, statements, etc. : 

Chinese offshore islands, armed hostilities, U.S. at- 
titude on invitation to Communist China to be 
present at Security Council discussion, 251, 252, 253, 
Cyprus case, statements in support in General As- 
sembly of New Zealand resolution, 31, 266 
Disarmament, meeting in London, 450 
Egyptian-Israeli dispute and Gaza incident, 659, 660, 

Moroccan question and Tunisian question in General 

Assembly, 28, 29, 30 
Release by Communist China of U.S. aviators, 953 
Technical assistance, U.N. program, U.S. support for, 
351; testimony before committee of Congress, 663 
U.S. intervention in Chinese internal affairs, denial, 
Correspondence : 
Egyptian-Israeli clashes in Gaza Strip, letter to Se- 
curity Council members, 1016 
U.N. official, expanded program for technical assist- 
ance, U.S. pledge to, 861 
Subcommittee of Five of Disarmament Commission, 
U.S. representative, 235 
Lodge, John, confirmed as Ambassador to Spain, 246 
Logistic support for nation unable to equip own forces in 
case of enforcement measures for removal of threat 
to peace. General Assembly resolution (1954), 434 
Logistics. See Air Logistics under Aviation 
London agreements (1954), statements (Dulles), 43, 188, 

London Daily Express, on forced labor in Communist 

China, 101 
London Debt Agreement (1953), 438 


"UinK haul" concept of forelffn policy, 44 

lionl. Mm. t>swald B., U.S. representative, to attend ses- 

hIoii of l"..N. Commltwlon on Human Ulghts, 576 
I>iwil«Tnillk. William Clay, soil expert, to Israel under 

exchauito proBTani, 307 
I.uce. Clare B<H>tho, U.S. Amlia.^sador to Italy, addresses: 
American dli'lomacy at work, 016 
Italy In IW5, l.'il* 
World trade and U.S. security, 174 
LnxenibourR {ife alto Helgo-Luxembourg) : 
Treaties, aKri-ement.s, etc.: 
(.'uHtoms facilities for touring (1954), signature, 37 
Coatonu on private road vehicles, temporary Im- 
portation (1104 ). signature, 37 
Obdcj-ne publications, protocol (1949) amending 

agreement (1910) for suppression of, 702 
riant prot<i-tlon convention (1951), ratiflcation, 544 
White slave traffic, protocol (1949) amending previ- 
ous agreements, acceptance, 702 
Lyon, Cecil U., Director of the Office of German Affairs, 
address on the new Germany, 183 

MacCoIl, liene, correspondent of Londim Daily Express, on 

forced labor In China, 101 
SlcCormlclc, Admiral Lynde D., report to Standing Group, 

NATO, excerpt, 512 
McDonnell, James, appointment as chairman of U.N. 10th 

anniversary program, ;!S5 
McKnll, Jack K., conllrmation as Ambassador to Fin- 
land. 113 
Madsen, Matthias, appointed U.S. member on Pacific Hali- 
but Commission, 1001 
Maglolre, Paul E., President of Haiti, address before 

Joint se.<ision of Congress, 273 
Magsaysay. President, of the Philippines, tribute (Dulles), 

332, 402 
Mahoney. Charles H., U.S. representative in General As- 
sembly, statements on iirobloms of high seas and 
forthcoming reitort, 02 
Malaya : 
Kuala Lumpur, elevation to Ccmsulate General, 906 
Prote<tlon under mutual security treaties, 459 
Mnnlln Pact (Southeast Asia collective defense treaty) : 
Council, nnnKki>k conference: 
Plans and U.S. delegation, 89, 318 
Texts of conimuni(|ue and statement, mid opening 
and closing statements (Dulles), 371, 373, 374 
Council, designation of military advisers and repre- 
sentatives, 372, 405; meetings of mllltarv advisers 
373, 400 
History and provisions of, .371, 378, 726, 727, 729 770 
KntlOi-atlon and entry Into force, 37, 281, 328, 398, 498, 

Sovlrt,,,. XM 

Htatemenis: (Dulles). «, 210, 330, 332, 459; (Eisen- 
howor), SI); (Murphy), 85. !-,24 ; ( Itobertson ) , 126 
12«, l.TO; (Hobald),378 
Mao Tso-iunK: 
On forc«l lalxir In Communist China, 101 
»««•« portrait, 127 

AfrU-a (North), Asia (South), and Near East, 258 
Anxlrla. 020 


Maps — Continued 
Germany, 794 
Israel, 303 
Pan American Highway .System, Principal routes of, 

facing 596 
World, showing U.S. collective defense arrangements, 
Marshall Islands, nuclear tests in, U.S. compensation for 
damage, U.S. and Japanese exchange of notes, 90 
Marshall Plan (1947), 47, 216, 292, 711, 803, 808 
Martino, Gaetano, Italian Foreign Minister, visit to 

Washington and remarks by, 612, 615 
Massachusetts Institute of Technology, study issued by 
Center for International Studies on expanded world 
trade, 963 
Massive retaliation, inadequacy of, 682 
Masters and ofiicers on merchant ships, convention on 
minimum requirement (1936), ratification by Argen- 
tina, 746 
Matsu Island, relation to defense of Formosa, 421, 526, 

527, 1001 
Meeting of Heads of Government : 

Discussion of, 875, 876, 914, 989, 990, 996, 1036 
Three-power preliminary meeting, purpose of, 759, 991 ; 

tripartite statement, 1030 
Tripartite notes by France, U.K., and U.S. to Soviet 
Union proposing, 832, 989 ; Soviet acceptance, 915n. 
Mend^s-France. I'ierre, Premier of France, statements on 

French problems in North Africa, 307 
Menzie.s, Robert G., Prime Minister of Australia : 
Address before House of Representatives, 560 
Visit to Washington, 295 
Metric standards, project to redefine, 55 
Mexico : 
Claim to extended territorial waters, 939 
Political conditions, address (Nixon), 589, 593 
Treaties, agreements, etc. : 

Industrial productivity, agreement with U.S. for pro- 
gram promoting (1955), 1059 
Migratory workers, with U.S. (1955), 701, 866 
Non-occupational insurance for injuries and illnesses 
of Mexican workers, with U.S., 74 
Middle East: 

Agriculture and democracy in, article (Tannous), 354 
Defense of and U.S. support to, 565, 566, 569 
Northern tier concept, 43, 86, 354, 568, 839, 954 
U.S. definition of, 564 
U.S. policy in, 355 
Migrant labor agreement ( 1951 ) , with Mexico, as amended 

(1955), 701, 866 
Military assistance (see also Defense support; Direct 
forces support; Mutual defense) : 
Agreements with : Camlwdia, 891 ; Cuba, 944; Far East- 
ern nations, 726; Guatemala, 1019; Haiti, 244, 282; 
Philippines, 906 
Equipment : 

Increase in European production, 11 
Integration of equipment of U.S. and allied forces, 714 
Europe, including Gcrmatiy, amount of aid, 711, 724 

Department of State Bulletin 

Military assistance — Continued 
Program : 

Global, total value, 724, 798 
NATO program, coordination with, 167, 1038 
Recommendations, budget message (Eisenhower), 166 
Military equipment, arrangement with Japan, relative to 
furnishing, jjursuant to mutual defense assistance 
agreement (1954), 244 
Military missions, extension of previous agreements, 
with — 
Ecuador, 982 
Iran, 630, 724, 839 
Military program, U.S. : 
Personnel strengths, correspondence between the Presi- 
dent and the Secretary of Defense, 87 
President's message to Congress, 81 
Ministers of Finance and Economy, meeting in Rio de 

Janeiro (1954), 729, 731, 743 
Mitchell, William L., delegate to Inter-American Confer- 
ence on Social Security, 545 
Mobile striking power, new strategic concept, 12 
Molotov, V. M., statement on Austrian state treaty, 735 
Monaco, acceptance, convention on safety of life at sea 

(1948), 1058 
Moroccan situation. General Assembly resolution and 

statements (Lodge), 28, 29, 30 
Morton, Thruston B. : 
Address on peace through collective security, 215 
Reply to Senator Olin D. Johnston concerning State 
Department personnel, 245 
Moscow Declaration (1943), pledges of fulfilled by Aus- 
trian state treaty, 1007, 1008, 1009, 1013, 1015 
MuUiken, Otis E., delegate to session of Governing Body 

(ILO), 365 
Munitions Control, Office of, articles on activities and 

U.S. policy, 51, 542, 884 
Muntasser, Saddiq, credentials as Libyan Ambassador, 840 
Murphy, Robert D., Deputy Under Secretary of State, 
addresses : 
Asia, 521, 835 

Fundamentals of collective security, 796 
Labor's concern with foreign affairs, 84 
Mutual defense assistance agreements {see also Military 
assistance; Mutual defense treaties) with — 
Belgium : 
Agreement (1955), amending agreement (19.50), 866 
Agreement (1953), disposal of excess property fur- 
nished, entry into force, 498 
Ethiopia, 724 
Iraq, 339, 341, 724, 839 
Japan, 244 
Netherlands, agreement (1950), program of facilities 

assistance pursuant to, agreement (1955), 1020 
Pakistan, 339, 340, 341, 342, 459, 724, 839 
Thailand, 459, 718, 720, 724 
Mutual defense treaties (see also Military assistance; 
Mutual defense assistance agreements) : 
Australia and New Zealand, trilateral treaty with U.S., 

80, 129, 328, 377, 459, 524, 954, 1000 
China, Japan, Korea, the Philippines, bilateral treaties 
with U.S., 80, 129, 150, 211, 287, 328, 377, 420, 453, 
459, 524, 954, 1000 
List of Asian countries covered by, 459, 954, 1000 

Index, January to June 1955 

Mutual Security Act (1954) : 

Agricultural surpluses, provision relating to, 138, 203 

Authority under to control import and export of muni- 
tions, 884, 886, 887 

Encouragement of International travel, direction to the 
President, 494 

Financial aid under, for Laos, Cambodia, and Viet-Nam, 

Loans under, responsibilities of FOA and Export-Import 
Bank, 282, 696 

Mutual security program under, 714, 715, 717 
Mutual security program (see also Mutual defense) : 

Budget recommendations, fiscal year 1955, 338 

Budget recommendations, fiscal year 1956: 
Messages to Congress (Eisenhower), 163, 166, 3^, 

695, 711, 713 
Statements before committees of Congress (Dulles), 
171, 287, 854, 911 

Cumulative effects of, statement (Dulles), 911 

Economic and technical aid to foreign countries. See 
Technical and economic aid 

Far East and Pacific, stabilization of free nations of, 
695, 712, 726, 727 

FOA, regional meeting, 277 

Military aid to foreign countries. iSee Defense support ; 
Military assistance 

Mutual security treaties, value, statements (Dulles), 
171, 328, 459 

Near East, South Asia, and Africa, countries of, new 
approaches to security, article (Howard), 338 

Objective of program, 711, 715, 797 

Report to Congress on program (July-Dec. 1954), ex- 
cerpts, 717 

Narcotics, opium protocol (1953) : 

Accession by Au.stralia for specified territories, 398 
Ratification by U.S., 398 ; by Pakistan, 702 
Nash, James P., U.S. representative to General Assembly, 
statement on conference to study conservation of 
fisheries, 64 
Nathan, Otto, passport case of, 1050 
National Academy of Sciences, (544 

National Catholic Welfare Conference, aid to refugees 
from North Viet-Nam and cooperation in refugee 
program, 227, 486 
National City Bank of New York v. Republic of China et 

al., Supreme Court decision, 557 
National Cotton Council, 883 
National Reserve Plan, statement (Dulles), 514 
National Science Foundation, 644 

National Security Council, creation and activities, 531, 715 
NATO. See North Atlantic Treaty Organization 
Naval base and fleet facilities, additional, NATO project. 

Naval missions, agreements with — 

Brazil (1954), amending agreement (1942), 74 
Cuba (1955), extending agreement (1951), 1020 
Navarre Plan, building up local forces, 13 
Near East : 

Economic development projects, U.S. aid, 344, 351, 7(34, 

Land turned over to peasants by Shah of Iran, by private 
individuals, and by states, 763 


Near East— CoDtlnoed 
I'ubllc boallii, stuilenu studylne In C.8., 766 
Social (llJHoiiU'iit, iirtlfli' (Porsi-y), 760 
Tcchiilciil ii^.slsiHiKx. r.S., iiiiil pniBraius of L'.N. speclal- 
Iu-<1 UBfiicl.-si, 34.'). 7(13, 70.',. 706 
Near l-:ast. South AhIii, nud Africa : 

Communist mpimco In area, 4«1, 761, 762 

I'. 8. iK>ll<y In N'l-nr Kimt, South Asia, and Africa (1954), 

article ( Howard ) . 2M. 301. 338 
r.S. r«'Iatlnn.s with ctmntrles of (1930-55), article, 481 

NVgro, A rl.iin, status of, statement (Green) In General 

AKsombly. 107 
Nepal : 

KOA, relU'f procraiu after floods, 348, 726 
U.S. AmIm.sjMidor (CooiH>r), conflrmatlon, 366 
U.S. technical and economic aid, 347 
Netherlanils : 
TreatU's, agreements, etc.: 
Air defense technical center, agreement with U.S. 

(1954), 157. 398 
Claims to liMited securities (1951), and claims to 
German enemy a.ssct.«, under Brussels intercus- 
todlal agreement ( 1947), discussions, 998 
Commercial samples and advertising material, con- 
vention (1952) to facilitate import, accession also 
for listed territories, 1020 
International telecommunication convention (1952), 
ratlflcatlons of Netherlands and listed territories, 
Mutual defense as^sistance agreement with U.S. 
(1050), aKrr>ein)-nt on program of facilities pur- 
suant to (1955). 1020 
Patent rights nnd technical information, agreement 

( 1955 ) . with U.S.. for interchange, 906 
Koad frafllc convention (19-19). notification of exten- 
sion to Netherlands New Guinea and Surinam, 545 
Tariff concessions, agreement between U.S., Belgo- 
Luxembourg Economic Union, and (19.j5), (text) 
10S5. 1059 

Netherlands New Guinea, road traflic convention (1949), 

extension to, 545 
Neutral Nations SuiicrvKsory fomnilsslon : 
Investigation of Communist violation of Korean armis- 
tice, 427 
(Juextlon of termination, 429 
Neutrality : 
Austrian plans reKp«><llng, 1010, 1015 
StnteniiTit (Dulles) with respect to Austria and to 
Germany, 032 
New York Time,, nrtlcles by Harrison Salisbury on forced 

labor In Soviet Union, 100 
New Za>aland : 
ChlniiH. nff.liore Ulands. re<iuest by representative for 
meellng of Se<Tirlty Council to consider hostilities 
in srr, of. 251. 2.VI, 2.S9. aiO; U.S. attitude, 253, 
aft'., 652 
fleardutlon In f.onornl Assembly, not to consider Cyprus 

rase further. 2fll. 2fl3. 266 
Ue^lutlon In S.^rl,y Coun.ll regarding Egyptian re- 
strlrtloM on Suea Canal tramc, 305 


New Zealand— Continued 
Treaties, agreements, etc. : 

International telecommunication convention, addi- 
tional protocols, and final protocol (1952), ratifi- 
cation (also for listed territories), 982 
Manila Pact, statement and communique by Council 
meeting of signatories to, 371 ; ratification and 
entry into force, 398 
Mutual defense, with U.S. and Australia, 80, 129, 328, 

377, 459, 524, 954, 1000 
Universal postal convention ( 1952 ) , ratification, 630 
U.S. Ambassador ( Hendriclison ) , confirmation, 246 
Newfoundland, Investment of foreign capital in, results, 21 
Nicaragua : 
Conflict in Costa Rica, question of implication in, 179, 

180, 181 
Cooperative programs in education and health, agree- 
ments with U.S., 826 
Political conditions, address (Nixon), 588, 594 
Nicaraguan-Salvadoran free trade area, 498 
Nichols, Clarence \V., designation in State Department, 282 
Nigeria, evolution of, 318 
Nixon, Richard M., Vice President : 
Addresses, statements, etc. : 

Inter-American Highway, recommending completion, 

592, 596 
Meeting the people of Central America, 587 
Nonimmigrant visas, agreement with Guatemala, entry 

into force, 281 
Noninterference in internal affairs of other nations {see 
also Intervention), restrictive business practices dis- 
cussed in connection with, 975 
Non-self-governing territories, economic and social prog- 
ress, statement (.Jackson) in General Assembly, 69 
North Atlantic community, address by U.S. Ambassador to 

Great Britain (Aldrich), 503 
North Atlantic Council : 

Defense production and mobilization, meeting called by 

Defense Production Committee, 125 
Defensive strength, report to Council by Military Com- 
mittee, 10 
Italian part in European cooperation, declarations on. 

Ministerial meetings : 
Dec. 195//: communique, 10; statement (Dulles), 9 
May 195.-): communique, 831; statements (Dulles), 
831, 872, 911, 914 
Permanent Representatives and other members, visit 
to North American installations, 833 
Nortli Atlantic Ocean stations, agreement on (1954), 

entry into force, 576 

North Atlantic Treaty (NAT) : 

Accession of Germany, protocol (1954), acceptances by 

all parties to NAT, 465, 545, 605. 609, 666, 746, 786, 

826 ; accession deposited by Germany, 793, 826, 831 

Agreement between parties to, regarding status of forces 

(1951), ratification by Denmark, 982 
Agreement on status of NATO, national representatives 
and staff (1951): ratification by Belgium, 453; 
France, 281; Italy, 498; U.K. 74; signature by 
Greece, 866 
European situation at time of signing, address. (Aid- 
rich), 503. .504 

Department of State Bulletin 

North Atlantic Treaty — Continued 

Protocol on status of international military headquar- 
ters (1952), ratification by Denmark, 982; France, 

U.S. policy declaration on Western European Union, 

involving policy on NAT, 464, 465 
Western European Union, relation to, 294, 465, 608, 831 
North Atlantic Treaty Organization (NATO) : 
Address (Gruenther), on European defense, 515 
Agreement between parties to NAT for cooperation 

regarding atomic information, text of draft, 686, 

Air training programs, 510 
Anniversary of treaty signature, address (Perkins) , 681 ; 

statement (Dulles), 685 
Annual review of capabilities and annual survey, 724, 

Contribution to objectives of U.N., 769 
Council. See North Atlantic Council 
Cyprus case, effect on relations of constituent countries, 

262, 264, 265, 266 
Defense expenditures by our allies, statement (Murphy), 

Defense expenditures of NATO countries (1949-53), 

Annex A to excerpt from Lord Ismay's report on 

NATO, 513 
Defensive nature of, in connection with remarks of 

General Stevenson, U.S.A., exchange of aide- 
memoire, by U.S. and Soviet Union, 137 
Defensive power, increase of, 43, 80, 724 
Germany, welcoming into membership, 188, 793, 805, 831, 

872, 911, 914 
Greece and Turkey, membership in, 339, 341, 342, 343 
History of, 505, 855, 1036, 1038 
Information program, visit to U.S. by group of reporters, 

officials and others from NATO countries, 267, 441, 

Infrastructure program (1955), including airfields, fleet 

facilities, and oil pipelines, 89 
Maneuvers for training purposes, 509 
NATO: The First Five Years, report by Lord Ismay, 

excerpt, 506 
Standing Group and Military Representatives Com- 
mittee, headquarters, 8.S4 
Turkey and Greece, contribution to, 339, 341, 342, 343 
Western European Union, relation to, 465, 831 
North Korea : 
Communism, attitude toward, 5, 6, 8 
Illegal introduction of combat aircraft in violation of 

armistice, 426 
"Northern tier" concept, in Middle East, 43, 86, 3.54, 568, 

839, 954 
Norway : 
Cyprus case, opposing inclusion on General Assembly 

agenda, 265 
Treaties, agreements, etc. : 
North Atlantic Treaty, accession of Germany (1954), 

acceptance, 746 
Patent rights and technical information, agreement 

with U.S. for interchange of (1955), 786 
Norwegian fi.sheries case, judgment by International Court 

of .Justice, 936 
Nu, U, Prime Minister of Burma, visit to U.S., 840 

Index, January to June 1955 

Nuclear science. Sec Atomic energy 
Nuclear studies : 

Oak Ridge Institute of, 691, 705 

School of Nuclear Science and Engineering, 421, 553, 
615, 691, 804 
Nuclear tests in Marshall Islands, U.S. compensation to 
Japanese for damage, U.S. and Japanese exchange 
of notes, 90, 206 
Nykopp, Johan Albert, credentials as Finnish Ambassador 
to U.S., 214 

Oak Ridge Institute of Nuclear Studies, training course, 

691, 705 
OAS. See Organization of American States 
Obscene publications, protocol (1949) amending agree- 
ment (1910), acceptance by Luxembourg, 702 
Occupation regime in Federal Republic of Germany, pro- 
tocol on termination of (1954), ratification by France, 
43, 188, 605, 609, 826; Germany, 746; U.K., 826; U.S. 
605«, 609, 666, 727, 746 
OEEC. See Organization for European Economic Coop- 
Office for Foreign Investment, established in Commerce 

Department, 848 
Offshore islands. See under China, Republic of 
Offshore procurement : 

Agreements with : Germany, 786 ; Greece, 74, 1059 
Contracts, amount of, 725 

Free labor, not Communist labor, to benefit, 229 

Anglo-Iranian controversy, solution, 217, 257, 269 
Austrian, Soviet relinquishment under state treaty, 1010, 

Brazilian oil shale, technical cooperation on prospect- 
ing, 453 
Imports and domestic production, desirable proportion, 
recommendations by Advisory Committee on Energy 
Supplies, 489 
Middle East, resources of, 565 

Nationalization, Communist preference, vs. free enter- 
prise, address (H. Hoover, Jr.), 9.56 
Pipelines, additional, NATO project, 89, 520 
Price in Western Europe, U.S. views on study by ECE 

secretariat, 558 
Production and problems, 355 
Oil Consortium, agreement with Iranian Government re- 
specting oil production, 257 
Operation Brotherhood, operated by Philippine Junior 

Chamber of Commerce, 461 
Operations Coordinating Board : 
Interdepartmental body, 474 
USIA Director to be member of, 436 
Organization for European Economic Cooperation 
(OEEC) : 
Beginnings, 770 

Long-range economic plan for Italy, 135 
Program to facilitate travel, 743 

Report, entitled Private I'.S. Investment in Europe and 
the Overseas Territories, 137 
Organization for Trade Cooperation (OTC) : 
Agreement (19.55) , signature, 577, 1058 ; text, 579 
Purpose, to administer GATT, 48, 495, 577, 800, 879, 
960, 962 


OrKni.l««<l"» f'-r Trn.lo r,K.i*ratlon-Contlnued 

Pn-M.l.-i.l« m.-s«iK.- t.. «-o..Brfs« recommending U.S. 
in.mb.Ti<lill). 078. 879 

Oritnnluillon of AmerU-iin Suites (OAS) : 
Charter, riitlfl.iitlon l.y Guatemala, <MJO 
Ccta Ill.n. mu-eew. In terminating hostilitle.s In, -118. 

a».tn H1.-.1 Hii.l NlmrnKua. settlement of dispute be- 

twwn, n», WO, ISt.-JWff 
Inter-Ainerloan Commission of Women, meeting of As- 

HefilKiiatlon of Merwln L. Bohan as U.S. representative 

on Inter-Amerkan Phonemic and Social Council, 

Rew.lutlon on situation In Costa Illca, calling upon niem- 

t>orti for certain aid, 131 
KesoUitlon ro<iuestlnR member states to expedite orders 

from Costa Ulca for aircraftri«2^ 
U.S. aircraft available for observation flights in Central 

America, 131 
U.S. contrlliution. 713 
Value, addre.iN (iMilles), 728 
OTC. Sec Organization for Trade Cooperation 
Outer Continental Shelf LAnds Act, 938, 930 

I'ncinc Charter; 

H«'glnnlnKH, SO. 124, 12.S 
I'riii.iples of, .331. ;U1, 373. 379, 461, 524 
I'hiIMi-. Western. defeiL-fe of: 
Mi-Ksage to ('< (Elsenhower), on defense of For- 
mosa, 211 
Statetnents (Dulles) on mutual defense treaty with 
China anil Act of Congress authorizing defense of 
Fornio.-ia, 287, .329. 044 
Statements ( Murphy : 11. Hoover, Jr.) on Importance of 
Formosa to defense of Pacific, 525, 1000 
Pakistan : 

Premier Mohamme<l All. conversation with Chou En-lai, 

Trentit*. agreements, etc. : 

Agricultural surjilus coinniodities. with U.S., 204, 282, 

(text) 311 
Defense Kup[)ort with I'.S., entry Into force, ir,7, 282, 

(text), .ms. ttTA, 720 
Economic aid, with U.S., 1,''.7 
Emergency Hood assistance, agreement amending 

agroenient (in.%4), with U.S., 157, 349 
Inti-nintliiMiil ti'leconimunlcatlons convention (1952), 

rntlllrntlon, .37 
Inveniment giiarnntles. with U.S.. 982. 1018 
Manlln Part : c-omniunique and statement by Council 
nwi-llng of signatories to, 371; entry Into forc-c 
3^12. 3!>H 
Mutual ilrfi-iiiio aHNlNtance agreement, with U.S., 330. 

.341. 342, -LMl. 724. 8.39 
Nnrcfitlc drugs, opium protocol (1953), ratification 

Tprhnlral nioppratlon. agreement (1955). with U.S., 
.... . , . . .,, . „i;r„.n,|.nt (1051), 282 
Turk. '»>l''rntlMii, nKre<>ment with (1054), 

• .'Uo. :ui. 830 


Pakistan — Continued 

U.S. military aid, 339, 340, 341 
U.S. technical and economic aid, 342, 348 
Visit of Premier Mohammed Ali to U.S. (1954) , 256 
Palestine : 

Arab refugees from : 
Reparation or compensation. 25, 26, 27, 28, 302. 306 
U.S. financial aid, 339 
U.S. policy, 28, .301, 306, 659, 660 
Jordan waters, project for international sharing, Israeli 

attitude, 346, 347, 765 
Problems (19.54), 301 
Refugees from. See Arab refugees, supra; see also 

U.X. Relief and Works Agency 
U.S. cooperation toward peace, 713 
Pan American Child Congress, 10th, meeting at Panama, 

Pan American Day and Pan American Week, proclama- 
tion, 597 
Pan American Union, 600 
Panama : 
Ambassador to U.S. ( Vallarino) , credentials, 677 
Death of President of, statement by President Eisen- 
hower, 91 
Political conditions, address (Nixon), 588 
Seizure by Peru, on claim of territorial waters, of 

whalers flying Panamanian flag, 937 
Treaties, agreements, etc. : 

Colon Corridor, convention (1950), with U.S., ratifi- 
cation, 700, 702, 746 
Highways convention (1950), with U.S., ratification, 
700, 702, 746 
Panama Canal, treaty between U.S. and Panama (1955), 
text, and text of memorandum of understandings 
reached, 37, 238, 241 
Paraguay, cooperative programs, in agriculture, education, 

and health (19.50), exten.sion with U.S. (1955), 906 
Parcel post agreement (1954), with India, entry into 

force, 866 
Paris agreements (see also North Atlantic Treaty: acces- 
sion of Germany: see also under Germany: treaties, 
terniiuation of occupation regime), ratification by 
Franco, Germany, Italy, U.K., and U.S., 43, 465, 605n, 
609, 826 
Passport Oflice, designation of Director, 745 
Passports. Otto Nathan case, 1050 

Patent rights and technical information, interchange for 
defense purposes, agreements (1955) with — 
Netherlands, 906 
Norway, 780 
Patriotism and the American tradition, address (Diilles) 

at Indiana University, 1031 
Patterson, Morebead, addresses: 

Atomic energy, for peace, international cooperation, 690 
Oix>ning of School of Nuclear Science and Engineering, 
Peace Observation Commission, 343n 
Peaceful settlement: 

Egypt and United Kingdom on Suez Base, 124 
Issues in 1954 solved by free world, 43, 80 
Italy and Yugoslavia with relation to Trieste, 124 
Peanuts, modifications of restrictions on imivirt. 0."i5, 1005 

Department of State Bulletin 

Pearson, Lester B., Canadian Secretary of State for Ex- 
ternal Affairs, excliauge of letters with U.S. Ambas- 
sador on St. Lawrence Seaway, 437 
People's Daily Jen Min Jih Pao, on forced labor in Com- 
munist China, 100, 101 
Perkins, George W., U.S. representative on North Atlantic 

Council, address on NATO, 681 
Personnel, Secretary of State's Public Committee on, re- 
port of, 408, 409, 539, 621, 623, 627, 638, 817, 850, 851, 
853, 995 

Claim to extended territorial waters, 935, 937, 939 
Investment of foreign capital in, results, 21 
Seizure of whaling vessels and fine, under claim of ter- 
ritorial waters, 937 
Treaties, agreements, etc. : 

Agricultural surpluses, agreement with US., 313, 

Cooperative employment service program, with U.S., 

Cooperative program, with U.S., in agriculture and 
health, agreements (1955), extending agreements 
(1950), 786, 1020 
Cooperative program, with U.S., in irrigation, trans- 
portation, and industry (1955), 1059 
Guaranties against inconvertibility of investment re- 
ceipts, agreement with U.S. (1955), 786 
Stabilization agreement with U.S., extension, 440 
Supplies and services to naval vessels, with U.S., 
signature, 282 
Petroleum. See Oil. 

Peurifoy, John E., Ambassador to Thailand, to serve also 
as U.S. representative on Council for Manila Pact, 
113, 465 
Philippines : 

Communist defeat in, 8, 460, 524 
Huks, method of dealing with revolt of, 460, 524 
Junior Chamber of Commerce, aid to Vietnamese refu- 
gees, 461 
Member, Consultative Committee on Economic Develop- 
ment in South and Southeast Asia, 17 
Secretary Dulles, visit to, 332 
Territorial waters, claim, 935 
Treaties, agreements, etc. : 
Informational media guaranty program, exchange of 

notes modifying agreement (1952), 545 
Manila Pact, communique and statement by Council 

meeting of signatories to, 371, 398 
Military assistance, with U.S. (1955), 906 
Mutual defense (1951), with U.S., 80, 129, 328, 376, 

459, 524, 954, 971, 1000 
Trade agreement (1946), negotiations for revision, 
129, 971 
U.S. defense support, 720 

U.S. technical and economic assistance program, 300, 522 
Phillips, Christopher H., address on U.N. refugee program, 

Phleger, Herman, Legal Adviser, address on recent devel- 
opments affecting the regime of the high seas, 934 
Photography and sketching, by Soviet citizens in U.S., U.S. 
note, announcement, and regulations restricting, 199 

Photography and sketching, by U.S. citizens In Soviet 
Union, restrictions contained in Soviet circular note, 
Pibulsonggram, I., Prime Minister and Defense Minister of 
Thailand, address before U.S. Senate, and award of 
Legion of Merit, 841 
Plant protection convention, international (1951) : 
Adherence by Greece, 113 ; by Laos, 630 
Ratification by Ireland, 982 ; Luxembourg, 544 ; Yugo- 
slavia, 544 
Poland : 
Ambassador to U.S. (Spasowski), credentials, 795 
Detention of merchant vessels Praca and Qottwald by 
Chinese Navy, charge of U.S. responsibility, and 
U.S. denial, exchange of notes, 430 
Forced labor in, 105 

Geneva conventions (1949), ratification, 38 
Underground leaders, arrested by Soviet authorities 
(1945), U.S. request for information on, 737, 738 
Polio. See Salk poliomyelitis vaccine 
Portugal : 

Treaties, agreements, etc. : 

International Rice Commission, amended constitution 

and rules of procedure, acceptance, 244 
North Atlantic Treaty, accession of Germany (1954), 
acceptance, 786 
U.S. Ambassador (Bonbright), confirmation, 246 
Power positions, relative, of free world and Soviet bloc, 

article (Kalijarvi), 806 
Prisoners (see also Protection of U.S. Nationals) : 
Polish underground leaders under Soviet arrest (1945), 

U.S. request for information, 737, 738 
U.N. Command personnel held in violation of Korean 
armistice agreement, 6, 10, 44, 122, 189, 268, 429 
Private enterprise vs. Government control, 164, 166 
Proclamations : 

Continental shelf, jurisdiction by contiguous nation, 

Fisheries, conservation zones, 936 
Import of peanuts, permission for increase, 656, 1005 
Pan American Day and Week, 597 
United Nations Day, 651 
World Trade Week (1955), 657 
Productivity in industry : 
Agreements on cooperative programs with El Salvador 
(1954), 1020; Japan (1955), 701, 982; Mexico 
(1955), 1059 
Efforts toward raising, paper by U.N. Secretary-Gen- 
eral, 857, 858 
Protection by U.S. of foreign interests, 544 
Protection of U.S. nationals and property : 

Communist China, conver.sations at Geneva respecting 

U.S. citizens, military and civilian, held in, 430, 953 

Communist offer of visas to relatives of U.S. personnel 

detained in Communist China, U.S. attitude, 192, 


Compensation to those suffering losses as result of war 

with Japan, 848 
U.S. military personnel of U.N. Command and U.S. 
civilians held in Communist China, 6, 10, 122, 189, 
268, 429, 953; statements (Dulles), 44, 190. 552 
Proving ground for guided missiles, agreements with U.K. 
(19.50), negotiations to extend range, 44 

Index, January to June 1955 


I'ulilU- ail%liieni: 
Ainx'liitiiifiit by SwTPtary Dulles In coiincitlon with 

tariff iM>K"tlntlon», 700 
Statrni*'nt by, lor>6 
Public (•..iimiltK'c iiri Personnel, Secretary of State's 
(Wrislon Committee) : 
Cited. .TJ). 4<)>i. 4(«». KHt. 021. 850. 851. 853. 995 
Ite«Mmini'mlallonM. Hummary. 0.'W, 817 
ft^-oiicl audit report, (text) 0^:1,0.18 
CoiiBriiw. Hilt of current pulillcatlons on foreign policy, 

Its. l.-Kt, Zl-2. 2SI1, :t,s7. «3. 57:t. OoS, 805 
Foreign UrUiliont of the United Slates, released: 
irew. vol. IV (Far East). .322 
IICIS. vol. I (General). 944 
Has. vol. II (British Coninionweiilth. Kurope. Near 

East and Africa). 940 
1039. vol. in (Far East), 100 
Oeneral agreement on tarilfs and trade, list of current 

Stale department dealinR vrith, 080 
State Ik'pjirtment, lists of recent releases, 38, 114, 158, 

2S2, 300, 4.VI. 7.S0. si!). JM(J, 1021 
United Nations, lists of oirrent documents. 30. 230. 

279. .'.70, 70<t, 772. 8ft3, 1017 
Vniled States and Oermanv ; 19!,5-1955, 1020 
Puerto Rli-o. wononiie conilitions. address (Nixon). 589 
Pur>.-e Irlal.M, within Soviet bloc. 292. 042 
Pu.obkln. (i. M.. Soviet High Commissioner in East Ger- 
mniiy, correspondence with U.S. High Commissioner 
Conant on road tolls. (J4K, 7.30, 8.34 ; tripartite com- 
munique by I'.K.. French, and U.S. Ambassadors, 997 

Quemoy Island, attack ujxin by Chinese Communists. 211, 

251. 2.'52. 2.S9. 377 
Quemoy and XIatsu Islands. U.S. position with re.spect to statements (Dulles). 421, .">2G. .")27. 1001 

Rahl, Dr. Isador I.. U.S. repre.sentatlve on Advisory Com- 
mittee for International Conference on Peaceful Uses 
of Atomic Knert'>'. statements, 2.34, 314 
lUicv relations, apartheid In .South Africa, statements in 

General Assembly (Wadsworth), 32, 35 
Kailfonl. Admiral Arthur W., Chairman of Joint Chiefs 
of Staff, consultation at 'i'aiiici with Chinese officials, 
Itadlo Free Europe; 

ItnllrHiii li-allcts released over Hungary, U.S. note to 

Hungary, 14 
Statement by the President, 295 
Itndlfdwitop.^, Egypt Inn scientists to study in U. S.. 199 
Unndnll. Clarence U.. 001. 900 
Ilandnll Conmiisslon. Kir Foreign Economic Policy Coui- 


Itankln. J. U'v. Ansistant Attorney Oeneral, memorandum 

on effert on trade. Including barter, with Soviet bloc, 

nwler Aitrlciiltuml Trade Development and A.s.sist- 

•nr». Art ( 1054 ) . .500 

Rerlprnml irndn agret-ments. Her Trade .Xgreements Act 

UinI Army, withdrawal from Austria, 874, 913, 914 1009 

Hr«l Cromi i 

AM to rpfagM'* from North Viot-Nam, 'i'J^ 


lied Cross — Continued 

Distribution of U.S. aid in disasters, 419. 726 
Hurricane aid to Haiti, 275 
Refugee Relief Act (1953) : 
Appointment of deputy administrator under (Gerety), 

Appropriations, President's budget message, IVO 
Message of the President to Congress recommending 

amendments, 951 
Orphans, provision for admission to U.S., 90, 486 
Refugees and displaced persons : 

Arab refugees from Palestine, repatriation or compen- 
sation, 25, 26, 27, 28, 302. 306, 347 
Article on assistance to escapees by deputy director of 

FOA (Houghton), 415 
Australia, Canada, and Latin America, movement to, 

Austrian treaty, deletion of article respecting, 1010, 

Budset message (Eisenhower), 170 
Constitution of ICEM (1953) in force for listed states 

East Germany, flight from to West, 184, 189 
Fojtik, .Tan, Czech border guard, escape into Germany, 

Germany, need of emigration from, 405 
Housing in Germany, FOA grants-in-aid for. 189 
Orphan.s, arrival in U. S., 90, 486 
Promoting movement of migrants from Europe, article 

on ICEM (Warren) , 401, 403 
United Nations. See U.N. High Commissioner for Ref- 
ugees ; U.N. Relief and Works Agency for Palestine 
l\S. Escapee Program, 416, 652 
Viet-Nam, North, exodus to Free Viet-Nam, reports by 

l'X)A Mission, and by Secretary Dulles, 222, 461 
Viet-Namese fleeing to Free Viet-Nam, U.S. aid in 

exodtis, 223, 226, 228, 718, 720 
Voluntai'y organizations, aid to, 713 
Regional organizations, contribution to U.N., address 

(Key), 769 
Reinhardt, G. Frederick, confirmation as U.S. Ambassador 

to Viet-Nam, 786 
Relations between the Three Powers and Germany, con- 
vention, entry into force, 791, 792, 793 
Relief, grants mainly under Title II of Agricultural Trade 
Development and Assistance Act, to meet famine in 
Europe and Asia, 138, 348. 349, 419, 725, 847 
Relief supplies, agreements for duty-free entry and de- 
frayment of inland transportation, with Chile, 866; 
Honduras, 666 ; Jordan, 786 ; Korea, 906 
Religious liberty : 
Exchange of notes ( Roosevelt-Litvinov, 1933) on rights 

in Soviet Union of U.S. nationals, 425 
Litvinov agreement (1933) , expulsion of American priest 
from Soviet Union in violation of, 424 
Rem6n, Jos(5 Antonio, president of Panama, assassination, 

Repatriation, nonforcible, established by U.N. action in 

Korea, 6, 8 
Resettlement, refugees from North Viet-Nam into life and 
economy of Free Viet-Nam, 226 

Department of State Bulletin 

Restrictive business practices : 
Adverse effects in foreign trade, 974 
U.S. attitude toward U.N. study of and proposed inter- 
national agreement, 665, 976 
Reusch, WaltUer, German member of Validation Board 

for German Dollar Bonds, 140, 146 
Rice Commis.sion, International, amended constitution 
and rules of procedure, agreement (1953), acceptances 
by Portugal and Iran, 244, 313 
Road traffic convention (1949) : 
Notification by Netherlands of extension to Netherlands 

New Guinea and Surinam, 545 
Ratification by Israel, 545 
Status, 742, 744 
Robertson, Walter S., Assistant Secretary of State : 
Address on partnership of free nations, 126 
Consultation at Taipei with Chinese officials, 732 
Rockefeller, Nelson A., appointment as Special Assistant 

to the President, 16 
Roosevelt, Franklin D., exchange of notes with Litvinov 
(1933), on rights of U.S. nationals in Soviet Union, 
respecting religious liberty, 425 
Ruanda-Urundi, report in Trusteeship Council on progress, 

Rumania : 

Anniversary of independence, S42 

Forced labor in, 105 

Safety of life at sea, convention (1948), acceptance, 281 

Saar, Franco-German agreement on European status, sig- 
nature, 607 
Safety of life at sea, convention (1948), acceptance by 
Cuba, Dominican Republic, Germany, Monaco, and 
Rumania, 206, 281, 1058 
St. Lawrence Seaway, plans for construction, exchange 

of notes by U.S. and Canada, 437 
Salazar Camarena, Joaquin Eduardo, credentials as Do- 
minican Ambassador, 380 
Salisbury, Harrison, articles in New York Times on slave 

labor in Soviet Union, 109 
Salk poliomyelitis vaccine, statement (Dulles) on tran.s- 
I mission of report to interested countries, 689 

, Sandstrom, Justice Emil, chairman of board of governors 
of League of Red Cross Societies, letter to President 
Eisenhower, 420 
Santa Ana, U.S. flag fishing vessel seized by Ecuador, 987 
Satterthwaite, Joseph C, confirmed as Ambassador to 

Burma, 630 
Saudi Arabia, request that U.S. foreign aid mission close, 

Savings investments in Germany, compensation for hard- 
ship caused by currency reform extended to non- 
residents, 940 
' Scarves, screen-printed silk, rejection of higher duties on, 
Scelba, Mario, Prime Minister of Italy, visit to U.S., ad- 
dress before Senate, and announcement with Secre- 
tary Dulles of cooperation in peaceful uses of atomic 
I energy, 612, 613, 615 

I Scholarship Training Program, proposal by Public Com- 
mittee on Personnel, 625 
i School of Nuclear Science and Engineering, opening of, 
' 421, 553, 615, 691, 804 

Index, January fo June 7955 

Schuman Plan, antieartel provisions, 976 
Sears, Mason, U.S. representative on Trusteeship Council, 
statements : 
Atoms-for-peace proposal of President Eisenhower, ap- 
plication to African trust territories, 705 
Cameroons, self-government, 316, 317 
Ruanda-Urundi, progress, 704 
Tanganyika, racial problems, 703 
Togoland, political progress, 451, 452 
Sebald, William J. : 
Address on collective security, 375 
Statement on revision of trade agreement (1946) with 
Philippines, 971 
Securities : 
Austrian, legislation requiring revalidation of, 230 
German dollar bonds, report of Validation Board, 139 
Security Council : 
China, hostilities in area of islands off : 

Invitation to Communist China to participate in dis- 
cussion, 251, 253 ; Chinese Communist refusal, 254, 
289, 552 ; U.S. attitude, 253, 330, 365 
New Zealand request for meeting to consider, 251, 
253, 289, 330 ; U.S. attitude, 253, 365, 552 
Egypt and Israel, appeal to for cooperation with Truce 
Supervision Organization, resolution, (text) 662; 
statement (Lodge), 661 
Gaza incident, Israeli attack on Egyptians, resolution, 

(text) 661; U.S. attitude, letter (Lodge), 1016 
Israeli complaints against Egypt in respect of shipping 

and armistice agreement, 305 
S. S. Bat Oalim, case of Egyptian seizure of Israeli 

vessel, 110, 305 
Suez Canal, resolution proposed regarding Egyptian re- 
strictions on Suez traffic, 305 
U.S. intervention in internal affairs of China, Soviet 
charge and U.S reply, 2.52, 253, 245 
Selective Service Act, desirability of extending, 82 
Self-determination of peoples : 
Cyprus, quoted in case of, 264, 205, 266 
New states, turning to U.S. to champion their cause, 

difficulty of position, 271 
Statement (Eisenhower), 695 
Self-government, U.S. position on timetable for attainment 

by territories, 703, 706 
Self-interest, enlightened, principle in foreign relations, 

Self-reliant economy, capacity of American Republics, ad- 
dress (Dulles), 731 
Setasides of commodities, authority for administering, 6.55 
Simla conference, 913 
Slave labor. See Forced labor. 
Slave trade and slavery, convention to suppress (1926), 

accession by Lsrael, 545 
Slavery convention (1926), protocol amending, and annex : 
Acceptance by Iraq, 1058 
Ratification by Yugoslavia, 630 
Signature by Turkey, 206 
Smith, S. Alexander, U.S. representative to General As- 
sembly, statement on future of British Togoland, 67 
Smith, Walter Bedell, Acting Secretary of State, statement 

on Libya, 351 
Social Security, Inter-American Conference on, session at 
Caracas, 545 


South Afrirn, I'nlon nf : 

Aparlkiid. probl.'iii of. statements (Wadsworth) In 

Cciieral Aswiiibly. .'{2, 35 
Trentlen, nBTiN'iiifiitw, etc. : 

Aircraft. <iTtlll<atPM of airworthiness, exchange of 
Doteo with U.S. ( IJtM : 1!).".), entry into force. 630; 
(1B31). termination. 030 
Aviation convention (102»). ratlllcatlon (Including 
Sonth West Africa). 702 
U.S. AniliaK-tadnr ( Wullcs). confirmation, 113 
Sooth African-Southern lUioileslan Customs Union, 498 
South Pacltlc romnilsslon. ontli of office of Ralph Clalron 

IUhIcM as Secretary General. 423 
Southeast Asia : 
Coniniunl.Ht Hilna. aggressive intentions, 526, 552 
I*<irjM>so to improve economic condition under Manila 

I'act. 400 
U.S. ( commitments. .120 
Southeast Asia collective defense treaty. .SVc Manila Pact 
South West Africa, aviation c-onvention (1029), applica- 
bility to. 702 
Soven-ign Immunity, plea by Republic of China, case in 

Supreme Court. 5.'i7 
Soviet bliM- r-ountries: 
K.'ononilc (illlicuitles. 004 
Trade agrtH-ments. increase. 718 

Trade with U.S.. including barter, prohibited, oiiinion 
of Assistant Attorney Cieneral on effect of Agricul- 
tural Trade Development and Assistance Act 

(1054), :m 

Voting nvord In U.N.. 432 
Soviet Snciiillst RepublU-s. Union of (sec also Soviet bloc) : 
Adjoining <-<iuntrles. enslavement of or pressure upon, 

215. 292 
Agricultural delegations, exchange of with U.S., notes 

conceniine, 932. 070 
Arm<-<l strength. In time of noin-e. 10. 11. 293. 504, 505, 

513. 510. 798. 801 
Armwl slrenirth. stiitcnieiit of. Annex I? to excerpt from 

I^ird Ismny's ri-p.irt on NATO, 513 
Asian iM.IUy. .^•{l 
Atomic energy: 

Crltiiism of U.S. proposal of atonis-for-peace, 434, 694 
I'roJ.><ted conference on peaceful use of, Soviet com- 
ment, 234 
Results expected from. ,154 

S<iTlet offer to share knowledge of, Statement 
(HtrauKs). 170 
Austria. Invitation to Moscow, resulting in a memoran- 
dum of agrot-nient. 101 1, 1014 
AuMrInn «lnte Ireiiiy. ,s',v „„,;,.,• Austria 
nil)u-ns ..f. restrictions on travel in U.S.. U.S. note, 

announcement, and regulations. 193 
Colonlnllnn In. 74 

Culturnl c\rhnngp, iiropngnnda. 384 
IHwrmnment. n.UrepreH..iitatlon of Western p<,sltion, 

•tnlemrnt (Wadsworth), 027 
IXanrninmi-nt. pro|ioHnls (May Id) : 
I><-<'lnrnlliiM. (Nn 

U.~M.l..ii,m „n convention for reduction of armamenU 
■ i"l prohllilllon of atomic weaisms, 002 


Soviet Socialist Republics, Union of — Continued 
Disarmament, proposals — Continued 

Resolution on international control over reduction 
of armaments and prohibition of atomic weapons, 
Economic situation : 

Address (H. Hoover, Jr.), 955 
Soviet claim of gains, 718 
Editors of student and youth newspapers, plan and can- 
celing of plan to visit N.S., 487, 695 
Escapees, measures to punish, 415 
Expansion, methods of, 291. 552 
Expulsion from Soviet Union of U.S. priest, 424 
Farm delegation. See Agricultural delegations, supra 
Forced labor : 

Article (Salisbury), in New York Time*, 109 
Communist China, assistance in Instituting, 105 
Statements in General Assembly (.Johnson; Green), 
99, 106 
Foreign policy, as de.scribed by U.S. Ambassador to 
Great Britain (Aldrich), 504, 505; by General 
Gruenther. 519 
German integration into unite<l Europe, effort to ob- 
struct, 187, 292 
Imperialism, 515, 520 
Indoctrination of youth, 518 
Information monopoly in, 61 
Korea, promotion of aggression in, statement (Dulles), 

Litvinov agreement (1933), violation by U.S.S.R., 424 
Manila Pact, criticism, 331 
Meeting of Heads of Government. See Meeting 
Middle East, object of Soviet ambition, 505 
Military alliances, system of, 292 
National minorities, deportation or killing of, 34 
Photography and sketching by U.S. citizens in. Soviet 

circular note restricting. 199 
Polish underground leaders, arrested by Soviet authori- 
ties (194.J). U.S. request for information. 737 
Postwar territorial gains in Far East. 216 
Racial discrimination, question of existence in. 33. 34 
Red Army, withdrawal from Austria, 874, 913. 914, 1009, 
Return of U.S. Navy vessels receive<i under lend-lease, 
agreements with U.S. (1954; 1955), on dates and 
procedures, and number to be returned, 52, 113, 969, 
Road tolls in East Germany, correspondence between 
U.S. High Commissioner (Conant) and Soviet High 
Commissioner (Pushkin), e48, 736, 834 
Sino-Soviet agreements (1954), 7 
State r. party, policy differences of. 329 
Tension, likelihood of reduction of, statement (Dulles), 

Trade unions in, nature of, 84 

Travel by U.S. citizens in, Soviet note (1953) restrict- 
ing, 197 
U.S. Commander of 49tb Aviation Division based in 
England, remarks of, exchange of aidc-mdmoire, 
U.S. with U.S.S.R., 1.37 

Department of Slate BulleI'm 

Soviet Socialist Republics, Union of — Continued 
U.S. intervention in internal affairs of China, claim : 
Soviet letter and draft resolution in Security Council, 

253, 254 
U.S. reply, 252 
Veto in Security Council of resolution respecting 

Egyptian restrictions on Suez Canal traffic, 305 
Viet-Nani, civil vcar fomented by, 218, 378 
Yugoslavia, new attitude toward, significance, 913, 914, 
933, 992 
Spain : 
Lineup with the West, 217 
Treaties, agreements, etc. : 
Agricultural surpluses, with U.S., 767, 826 
Atomic energy, initialing of agreement with U.S. 
(1955) for cooperation in research in peaceful uses 
of, 1018n 
Commercial samples and advertising material (1952), 

convention to facilitate importation, 37 
Universal copyright convention and protocol (1952), 

ratification, 666 
Universal postal convention (1952), ratification by, 
U.S. Ambassador (Lodge), confirmation, 246 
U.S. defense support, 711, 720, 724 
Sparks, Edward J., confirmed as Ambassador to Guate- 
mala, 1062 
Spasowski, Romuald, credentials as Polish Ambassador, 

Specialized agencies of the U.N., value of, 771 
Stabilization agreement, with Peru, extension, 440 
S.S. Bat Galim, Israeli ship, case of, 110, 305 
Stassen, Harold E. : 
Address, U.S. policy on disarmament, 801 
Appointment as Special Assistant to President for de- 
veloping disarmament policy, 556 
Tribute (Dulles), 911, 912 
State Department (see also Foreign Service) : 
Administrator, Bureau of Security and Consular Affairs, 

functions, 321 
Appointments and designations, 74, 113, 282, 320, 454, 

546, 630, 745, 1062 
Appropriations (1930-55), table, 541 
Article by Historical Division on growth in functions 

and responsibilities (1930-55), 470, 528 
Budget (19.56), statement (Dulles), 823 
Budget and finance, 537, (table) 541 
Bureau of International Organization Affairs, estab- 
lishment, 477, 485 
Confirmations, 282, 1062 
Congressional relations, 531 
Control of export and import of arms, 542, 884 
Controller, functions, 321 
Deputy Under Secretary of State for Administration, 

functions, 321 
Diplomacy through international organizations and con- 
ferences, 484 
Economic activities, 528 
Economic Defense and Trade Policy, Ofiice of, abolished, 

FOA, transfer of functions of to State Department and 
Defense Department, 714, 715, 889, 911 

Index, January to June 1955 

State Department — Continued 
FOA, transfer to of Technical Cooperation Administra- 
tion, 476 
Foreign buildings, holdings of, 539 
Foreign Service Institute, transfer to Office of Deputy 

Under Secretary for Administration, 546 
History of (1930-55) , in two parts, 470, 528 
Information activities, transfer of overseas program to 

U.S. Information Agency, 534, 535, 537 
Inspection functions, transfer of, 113 
Integration into FSO of employees in Civil Service, FSS, 

or FSR, 472 
Intelligence activities, 530 
International Cooperation Administration, functions of 

FOA to be transferred to, 889, 890 
International Materials Policy, Office of, abolished, 282 
International Trade and Resources, Office of, estab- 
lished, 282 
Legal problems, postwar, 530 
Munitions Control, Office of, activities, 542 ; article 

(Bryan), 884 
Passport Office, designation of Director, 745 
Passports : 

Issuance of confided to judgment of Secretary of State, 

Statistics, 542 
Personnel, Public Committee on. See Public Committee 
Personnel, tribute (Dulles ) , 993, 994, 995 
Recruitment of Foreign Service officers : 
Address (Hoskins), 816 
Plans, 851 
Secretary of State and other top-level officers, respon- 
sibilities, 473 
U.S. chiefs of mission in Far East, conference, 290, 332 
State of the Union message to Congress (Eisenhower), 

excerpts, 79 
Stevenson, Adlai, criticism of administration foreign pol- 
icy answered by Secretary Dulles, 677 
Stevenson, Gen. John D. Commander of U.S. 40th Air 
Division, resentment of Soviet Union at remarks of, 
Strategic materials (^ee also Energy supplies) : 
Amounts purchased abroad, 177 
Latin America, source, 484 
Need for, 529, 798 

Stockpiling, 166 ; liquidation of, procedure recom- 
mended by 9th session of GATT, 579 
Underdeveloped countries, major source of, 719 
U.S. purchase with foreign currencies acquired from 
sale of surplus agricultural commodities, or by 
barter, 200, 205 
Straus, Roger W., promotion of international flow of 

private capital, statement in General Assembly, 19 
Strauss, Lewis L., chairman. Atomic Energy Commission, 
statements : 
Reported Soviet offer to share knowledge of atomic 

power, 170 
Sale of heavy water to India, 396 
Stuart, R. Douglas, U.S. Ambassador to Canada, exchange 
of letters with Canadian Foreign Minister on St. 
Lawrence Seaway, 437 
Stump, Admiral Felix B., Commander in Chief Pacific, 
consultation at Taipei with Chinese officials, 732 


Subin<>rK<>(l Luiuls Aft. li:Ci 
SiibMTsloii 111 I'liltc-U HtuteK: 
Pr<>Kr>'>u* In attack uu, Xi 
Tmity iirovUlon to safeguard against, 1000 
Sa*>s C'aiml : 

Anglo^EKyptlan aRrceinent (1054) resi)ectlng, 217, 260, 

•JBO, 004 
Egyiitian rpstrlctlons mi Isrnell shipping, 110, 305 
S.S. Hal dnlim, <iise of, 110, .'105 
SuKar at-TtH'iuent, intoruiitlonnl (1053), (MM 
Supreme Court, <l»H'lsion In case of National City Bank 

of \rw York v. Rri>ublic of China, 557 
8iiiiri'iiu' Ilcmlfiunrlcrs Allied Powers in Europe 

(SIlArE). iiplnlon on strength of NATO, .505 
Suriniiui, road tralDc eonventlon (1!)4!)), extension to, 545 
Suydani, Henry, statements: 
Chinese Communist rejection of invitation to attend 

meeting of Security Council, 2'A 
U.S. personnel held in Red China, Communist offer of 
visas to relatives of, 102 
Swo<Ien : 

Neutral Nations Supervisory Commission, U.S. aide- 

m^oire questioning continuance, 420 
Treaties, agreements, etc. : 

Aircraft, certilicates of airworthiness, agreement with 
r.S. (1054), entry into force, I.'kS; agreement 
(MKVJ), terminated, 158 
Commerce, importation of commercial samples and 
advertising material, ratification, 453 
Switzerland : 
.Minister (de Torrent^), presentation of credentials, 214 
Neutral Nations Supervisory Commission, U.S. aide- 

mi'moirc questioning continuance, 420 
Treaties, agreements, etc.: 

Atomic energy. Initialing of agreement with U.S. 
(10."!) for cooperation in research in peaceful uses 
of, 1018n 
Commercial samples and advertising material (1952), 

convention to facilitate import, accession, 37 
Trade agreement (1036), with U.S., negotiations to 
compensate for Increase In U.S. duty on watches, 
350, 360, :t01 
Trade agreement, supplementary (1055), with U.S. 
(text) 1056. 1000 
Syria : 
Development projects, 765 
Jordan Valley development, altitude tr>wiird plan for 

I^nds, Htate, distribution to iM-asnnts, "KJ 

Tarhen Inlands: 
Attack up<m by CIdnese Commuidsfs, 211, 251, 2.52, 3.30 
K»imbllc of China, redeployment of forces from, U. S. 
nid and exchange of mes-sages. President Kisen- 
hower and President Chiang Kai-shek, 2.55 200 .'529 

Taiwan. Srr Pnrninwi 

Tangiinylka. rpjN.rt In Trusteeship C.mncli on racial prob- 
Ivtan, 7na 

Tannou,. Anf I., article on agriculture and democracy In 

Middle Kjmt. .^54 
Tappln. John I,., roi.iirmed a.i And)aK«ador to Ml.ya, 24« 


Tariff policy, U. S. : 

Bicycles, further data desired on imports, 1003, 1004 
Concessions on certain items, agreement between U. S. 
and Benelux countries (1055), 1053, (text) 1055, 
Fish and fish products, duty on, agreement with Canada 

(19.55), 1053, (text) 10.55,1050 
Hatters' fur, continuation of rate of duty, 657 
Peanuts and walnuts, modification of restriction on 

import, 655, 657, 1005 
President's message to Congress on foreign economic 

policy, 110 
Reciprocal reduction of barriers, 120 
Scarves, screen-printed silk, decision not to increase 

duty on, 52 
Wood screws, decision not to impose new import restric- 
tions, 97 
Tariffs and trade, general agreement on (GATT) : 
Achievements of, 800, 879, 961, 962, 1045 
Balance-of-payments provisions, 578 
Canada, informal meeting w-ith U. S. to review conces- 
sions and import restrictions under, 97 
Concessions, extension of life of, 577 
Cul)a, renegotiations of certain concessions, request, 

Declaration on continued application of schedules, list 

of signatories, 1059 
Fourth protocol of rectifications and modifications, list 

of signatories, 1058 
Japan : 
Participation in, negotiations. 120, 359, 706, 812, 1051 
Proc6s- verbal extending declaration (1953) on rela- 
tions between certain parties to GATT and Japan, 
Protocol of terms of accession and decision agreeing 
to, 1051, (texts) 1053 and 1055, 1059 
Ninth session, to review and clarif.v agreement, 48, 120, 

390 ; reports, 495, 577 
Organization for Trade Cooperation, established to ad- 
minister GATT, 48, 495, 577, (text) 579, 678, 800, 
879, 960, 9G2, 1058 
Protocols amending (1955), 10.59 

Public advisers: appointment in connection with tariff 
negotiations with Japan and other countries, 706, 
10.53; statement by, 1056 
Publications on, list, 680 
Recommendations in Presidential messages to Congress 

to strengthen, 120, 813, 959 
Third protocol (19.53) of rectifications and modifica- 
tions to schedules, signature by Brazil, 898 
Taylor, Gen. Maxwell D., Conmuuuler in Chief of U.N. 
Command, protest against Chinese Communist attack 
on sabre jets, 891 
Teachers, influence of, address (Kalljarvi), 1041 
Teaching, program by Hampton Institute-Ford Founda- 
tion for improvement of, in Virgin Islands, 70 
Technical and economic aid to foreign countries : 
Accomplishments, 720 
Afghanistan, 339, 347 

African harbors, shore erosion and shoaling problems, 
358, 441, 722 

Department of Stale Bulletin 

Technical and economic aid to foreigm countries — Con. 

Agriculture, cooperative programs with Bolivia, 746, 
866 ; Chile, 982 ; Costa Kica, 433, 906 ; Ecuador, 441, 
1059; El Salvador, 630, 666; Haiti, 366, 826: Hon- 
duras, 944 ; Paraguay, 906 ; Peru, 786 ; Yugoslavia, 

Arab countries, 339, 344, 722, 763, 765, 766 

Asia, aid in economic development, 835, 840 ; results, 771 

Bolivia, development assistance, 308 

Brazilian oil shale, agreement on prospecting, 453 

Closing of foreign aid mission in Saudi Arabia, 346 

Construction industry in Asia and Caribbean, increased 
efficiency, 859 

Continuance of, statements : (Eisenhower), 81, 121, 169, 
713,813; (Dulles), 731; (Beaulac), 964; (Howard), 
338, 344; (Key), 334, 336 

Demand for technicians greater than supply, 718, 858 

Education, cooperative programs with Bolivia, 746, 866 ; 
Brazil, 630; Ecuador, 441, 1059; Haiti, 366, 906; 
Honduras, 944; Nicaragua, 826; Paraguay, 906 

Egypt, 346, 718, 765 

El Salvador, cooperative program in productivity, 1020 

Ethiopia, 350 

Far East, development programs, 483, 522, 770 

First programs, in Latin America, 713, 731, 964, 965 

Formosa Harbor, funds for construction, 423 

Germany, housing for refugees, 189 

Greece, development assistance, 344 

Guatemala, 718, 721, 722 

Hawaii, trainee program in, 71 

Health, cooperative programs with Bolivia, 746, 866; 
Brazil, 866 ; Costa Rica, 1059 ; Ecuador, 441 ; Haiti, 
366, 453; Honduras, 1059; Nicaragua, 826; Para- 
guay, 906; Peru, 1020; Venezuela, 1020 

India, 339, 522, 654, 722, 840 

Iran, 339, 345, 696, 718, 763, 765, 840 

Iraq, development and community welfare program, 345, 

Israel, 339, 345 

Italy, defense support, 395, 498, 720 

Japan, agreement to raise productivity, 701, 982 

Korea, development assistance, 296, 297, 298, 299, 300, 
718, 720 

Latin American technicians and labor leaders, visits 
to U.S., 599 

Lebanon, aid in river basin project, 339, 346, 722, 7(54 

Libya, 3.50, 351 

Middle East, value in, article (Tannous), 355 

Near East, South Asia, and Africa, countries of. 339, 
344, 345, 346, 347, 348, 350, 351, 722, 765 

Nepal, 347 

Number of technicians and contracts, statements ( Stas- 
sen), 344, 718 

Pakistan, agreement (1955), 282; defense support, 654, 
720 ; economic aid, 157, 342, 348 

Participating governments, amount of contribution, 721 

Peru, cooperative programs in industry (1954; 1955), 
206, 1059 

Philippines, industry and mining, 300, 522 

Transfer to FOA of technical cooperation program, 476, 
529, 537, 538 

Transfer to State Department and Defense Department 
of the functions of FOA, 714, 715, 889, 911 

Index, January to June J 955 

Technical and economic aid to foreign countries — Con. 
Turkey, 342, 344 

Universities, U.S., contracts, 348, 350, 721, 722 
Viet-Nam, Cambodia, and Laos, 192, 569 
Virgin Islands, teacher training in, through Hampton 

Institute-Ford IToundation, 70 
Yugoslavia, economic aid, 498, 847 
Technical assistance program, U.N. See under United 

Technical cooperation program, U.S. See Technical and 

economic aid to foreign countries 
Telecommunication convention, international (1952) 
ratification by China, 545; Egypt, 206; Ethiopia, 37 
French Protectorates of Tunisia and Morocco, 1058 
Korea, 313 ; Netherlands and listed territories, 10.58 
New Zealand and listed territories, 982 ; Pakistan, 37 
U.S., 702, 944 
Additional protocols and final protocol, ratification by 

Korea and New Zealand, 313, 982 
Associate membership, on U.K. application, for listed 

Caribbean possessions, 74 
Final protocol, ratification by U.S., 702, 944 
Television address (Dulles) reporting on events in Europe 

(May 9-15), 871 
Territorial waters : 

Claims to, in excess of three miles, and to waters above 
continental shelf, by certain states, 935, 937, 939 
General Assembly resolution requesting report from In- 
ternational Law Commission, 62, 64 
Peruvian seizure of whalers under claim of, 937 
Three-mile limit, U.S. position on draft articles pre- 
pared by International Law Commission, 699, 935 
Thailand : 

Communism, lack of success in, 8 

Member, Consultative Committee on Economic Develop- 
ment in South and Southeast Asia, 17 
Prime Blinister and Field Marshal I. Pibulsonggram, 

visit to Washington, 841 
Secretary Dulles, visit to, 332 
Treaties, agreements, etc. : 

Geneva conventions (1949), adherence to, 281 
Manila Pact, communique and statement by Council 
meeting of signatories, 371 ; ratification and entry 
into force, 37, 398 
Mutual defense assistance, 459, 718, 720, 724 
U.S. Ambassador (Peurifoy), 113 
Tliibodeaux, Ben H. : 
Address on American farmer and foreign trade, 45 
Designation in State Department, 282 
Three-mile limit of territorial waters, general agreement, 

Thurston, Ray L., article on the decade after V-E Day, 291 
Togoland, British : 

Economic development, Volta River Dam, 452 
Future status, after trusteeship, 67, 68w ; statement 
(Sears) in Trusteeship Council, 452 
Togoland, French, statement (Sears) in Council on pro- 
gress, 451 
Torrents, Henry de, credentials as Swiss Minister, 214 
Toioard a Stronger Foreign Service: Report of the Secre- 
tary of State's Public Committee on Personnel, 408, 
409, 539 



Asrlrultural Trade Devplopment and Assistance Act 

(IKM), i-ffptt with ri'siHH-t to Soviet bloc, 569 
AKiicuUur<>, roliitloi) to, 4.'i, 122 
AntltniHt |>ulUli-s uiul, stuU-iuent (Kalljarvl), 974 
llarrhTH, Intcrniitloiinl, efforts to lower, messages 

(KIsenhiiwer), SI. 120, 879 
IJuy Aiiierlctin Art : Bxcfutlve order, prescribing pro- 

(••■<lures, .Vt; foreign blilders, attitude, 49 
Coninierclnl sjinipl<'« and advertising ninterial, con- 
voiitloii (1!t,"2) to facllitiite liiiiK)rt : accession by 
Swllzerluiid and Hiwilu, .'tV; by Netherlands and 
listed territories, 1020; ratlllcatlon by Greece, 498; 
by Sweden, 4.''>3 
ConiiiKxIlty Trade Commission, U.S. not to participate 

In, 111 
Dlsorlminntlon against U.S. Imports, 48 
Economic strength (Iei)endent on, mes-sage (Elsen- 
hower), 119, 751 
Foreign relations, effect u|)on, statements: (Dulles), 

171. 17:»: (Elsenhower), 174 
Hong Kong ni<H-llng of subcommittee on trade of Cora- 

mlttM- on Industry and Trade of BCAFE, ."7 
Importance to eolle<-tlve security, 174. ,S(iO. 814 
Italy, exchange of memoranda on liherallzation of, 392 
Latin America, volume of, with U.S. 38S, 591, 601, 602 
I.,atlii American market. Importance to U.S. economy, 

I'eac-e, avenue to, address (Elsenhower), 754 
Quotas on Philippine products, Including sugar, changes 

propose<l In revLsed trade agreement, 973 
Randall Commission, recommendations for liberaliza- 
tion of, :W9, 390 
Itelatlon.s with Canada, Informal meeting, 97 
Travel, relation to, 741 

Uniformity of nomenclature for classification of mer-, convention (1923), r.S. withdrawal, 906 
U.S. ImiH.rt restrictions, detriment to, 49, 81 
U.S. trade policy, addresses (Thlbodeaux; Aldrich), 47, 

4I», 3M) 
World Trade Week (19,''.5), proclamation, 657 
Trade agreements : 

IVnador, terndnntlon, with U.S., 1,">3, 313 
Ki«a|M'-clause safeguards, Italian criticism, 38S, 395 
I'hillpplni-s. neKotlalloiis for revision. 129, 971 
Switxerhind : tariff negotiations to comiK-nsate for in- 
crease In duty on watches, 359; trade agreement 
(IIKWI. supplementary agreement to, (text) 1056, 

Trade AKre«>nient», Interdepnrlmental Committee on: 
Noll.-.' of tariff negotiations with Switzerland, 3.')9, 300 
Notice iiuppiementary to notice (1954) inv.,lvlng Japan 

Iteport on Inclusion of escape clauses, ].%3 
Trn.le AKn-.menl» Act (11K14). extension of: 

Addro«M>«: (KnllJnrvD.Ni.T; ( Murphy ), 800 ; (Waugh) 
S7H, HSO " " 

Approvnl hr both Hoqim>s. 878 

'"■"' "•■'■: '<•*'•>•• to Representative Martin, 

to Congr<>s8 on foreign economic 

i ....... ...«i, n.-.» 


Trade Agreements Act (1934)— Con. 

Secretary Dulles, statements before committees of Con- 
gress, 171, 443, 572 
Trade Agreements Extension Act (1951), report on inclu- 
sion of escape clauses, transmittal by the President 
to Congress, 153 
Trade Cooperation, Organization for. See Organization 

Trade fair program, U.S. 86, 122, 813 
Trans-Isthmian Highway, U.S. maintenance of, 700 
Travel, international : 

Development and future prospects, U.S. memorandum 

to U.N. Secretary-General, 491 
Mutual Security Act (1954), direction to the President 

to promote, 494 
President ELsenhower, recommendations to Congress, 

121, 494, 813 
Soviet citizens in U.S., U.S. note, announcement, and 

regulations restricting, 193 
Statement in ECOSOC on increasing (Hotchliis), 741 
Trade, relation to. 741 

U.S. citizens in Soviet Union, Soviet note (1953) re- 
stricting. 197 
Treaties, agreements, etc.. International (for specific 
treaty, see country or subject) : 
Agricultural surpluses, U.S., agreements for sale. See 

Agricultural surpluses 
Agriculture, cooperative programs, agreements. See 

'Vgriculture, cooperative programs 
Aircraft, certificates of airworthiness. See certificates 

under Aircraft 
Austrian state treaty. See under Austria 
Education, cooperative programs. See Education 
Health, cooperative programs. Sec Health 
Paris ajk'reenients. See Germany : treaties, termination 
of occupation regime. See also North Atlantic 
Treaty : accession of Germany 
Southeast Asia collective defense treaty. See Manila 

Tariffs and trade, general agreement on. See Tariffs 

and trade 
Trieste, memorandum of understanding between Italy, 

U.K., U.S., and Yugoslavia, 235 
Tripartite Declaration on Austria, by France. U.K., and 

U.S., 733, 734 
Western European Union and related Paris agreements, 
U.S. policy declaration, message of the President 
to Prime Ministers, 464. 008 
Treaties, proposed Bricker amendment to Constitution, 

statement (Dulles), 820 
Treaty actions by 83d Congress, summary, 154 
Treaty actions on treaties submitted prior to 83d Congress, 


Allied Military Government, termination, and final re- 
port to Security Council on administration of U.S.- 
r.K. Zone, 230, 269, 400 
Memorandum of understanding between Italy, U.K., 

T'.S., and Yugoslavia, implementation, 235 
Solution of problem of. 135. VMi, 376 
Tripartite lialkan Pact (19.".3 ; 19.54 ). ."iliO. 342. 839 
Tripartite Declaration on Austria (19.55). 647. 733. 734 
Tripartite declaration on Palestine problems. .302 

Department of State Bulletin 

Truce Supervision Organization (TSO), 659, 662 
Truman, Harry S., proclamations on fisheries and on Con- 
tinental Shelf, 936, 937, 938 
Truman doctrine (1947), announced in respect to situation 

in Greece, 292 
Trusteeship Council : 
Atoms-for-peace proposal, application to African trust 

territories, statement (Sears), 705 
British Togoland, discussion of future status, 67, QSn, 

Cameroons, under British and under French administra- 
tion, statements (Sears), 316, 317 
French Togoland, political progress, statement (Sears), 

Gold Coast, independent status, 67 
Ruanda-Urundi, statement (Sears), 704 
Tanganyika, racial problem, 703 

Timetable for attainment by territories of self-govern- 
ment, U.S. position, 703, 706 
Tunisian situation : 

French attitude, statements (Mendes-France), 307 
General Assembly resolution and statements (Lodge; 
Wadsworth) , 29, 30, 31, 307 
Turkey : 

Cyprus, case of, in General Assembly, domestic juris- 
diction cited, 264, 265, 266 
Iraq, mutual defense treaty with (1955), 339«, 712, 839 
NATO, membership, 339, 341, 342, 343 
Pakistan, treaty of friendly cooperation with (1954), 

339, 340, 341, 839 
Resistance to Soviet Union, 215 
Treaties, agreements, etc. : 
Agricultural surpluses, with U.S. (1954), and supple- 
mental agreement (1955), 203, 786, 814, 826 
Atomic energy, with U.S., for cooperation in research 

in peaceful uses of, 865, 1018m, 1020 
North Atlantic Treaty, protocol on accession of Ger- 
many, acceptance, 545 
Slavery, protocol amending convention (1926), 206 
Tripartite Balkan Pact between Greece, Turkey, and 

Jugoslavia, 217, 339, 342, 839 
U.S. defense support and military aid, 338, 339, 342, 

344, 712, 718, 720, 724, 839 
U.S. technical and economic aid, 342, 344 
Visit to U.S. of President Celal Bayar and Premier 
Adnan Jlenderes, 2.^6, 339 
U Nu, Prime Minister of Burma, visit to U.S., 840, 1002 
Underdeveloped areas : 

Effect on economy of free world, 719, 723 
Industrialization in, study by U.N. Secretary-General, 
UNESCO. See United Nations Educational, Scientific, 

and Cultural Organization 
Uniformity of nomenclature for classification of mer- 
chandise, convention (1923), U.S. withdrawal, 906 
United Kingdom : 
Atomic energy, offer of fissionable material, for peaceful 

uses, 272, 336, 467 
Cyprus, status of, statements in General Assembly, 262, 

263, 266 
Gold Coast, independent status, 67 
Meeting of Foreign Jlinisters of France, U.S., and, 759, 

Index, January fo June 1955 

United Kingdom — Continued 
Meeting of Heads of Government (four powers). See 

Military forces to remain on Continent, statement 

(Eden), 188, 608 
Non-self-governing territories, reports of visiting mis- 
sions on British administration in Cameroons and 
Nigeria, 316 ; Tanganyika, 703 ; Togoland, 67, 452 
Oil controversy, with Iran, solution, 217, 257, 269 
Racialism in Africa, views, 704 
Treaties, agreements, etc. : 

Air transport agreement, with U.S. (1946), authoriza- 
tions for polar routes, 998 
Anglo-Egyptian alliance (1936), termination, 261 
Atomic information for mutual defense purposes, 
agreement with U.S. on cooperation (1955), sig- 
nature, 1060 
Austrian state treaty. See under Austria 
Aviation, international civil (1944), protocols amend- 
ing with respect to sessions and seat, ratification, 
Constantinople convention (1888), guaranteeing free- 
dom of navigation through Suez, to be upheld by 
U.K. and Egypt, 260, 261, 305; U.S. position, 260 
Double taxation, with U.S., 244, 282 
Exercise of retained rights in Germany (1954), tri- 
partite agreement, 826 
International telecommunication convention (1952), 
associate membership (on U.K. application) for 
British Guiana,' British Honduras, and listed is- 
lands in West Indies, 74 
Long-range proving ground for guided missiles (1950), 

with U.S., negotiations to extend range, 44 
Manila Pact, communique and statement by Council 
meeting of signatories to, 371 ; entry into force, 398 
North Atlantic Ocean stations (1954), acceptance, 576 
North Atlantic Treaty, agreement on status of NATO, 
national representatives and staff (1951), ratifica- 
tion, 74 
North Atlantic Treaty, protocol on accession of Ger- 
many, 609, 826 
Paris agreements, ratification, 188, 609, 826 
Presence of foreign forces in Germany, convention 

(1954), ratification, 826 
Suez Canal, agreement with Egypt (1954), 260, 269 
Termination of occupation in Germany, proclamation, 
791; protocol (1954), ratification, 188, 609, 826 
Tripartite declaration on Austria, 647, 733 
Tripartite declaration on Palestine problem with U.S. 
and France (1950), Arab doubt of ability to fulfill, 
Trieste, U.S.-U.K. Military Government: termination, 
235, 236, 269; report by commander of zone (Win- 
terton), 400 
Tripartite note, with France and U.S., to Soviet Union 
on settlement of problems, 832 
United Nations (see also General Assembly; International 
Court of Justice; Security Council) : 
Accomplishments: addresses (Key), 268, 333, 460, 768; 

(Wadsworth), 432 
Ad Hoc Committee on Forced Labor, 99, 106, 107 
Anniversary (10th), plans and U.S. representation, 387, 
768, 915, 1060; U.S. proclamation, 0."1 


t'nllt-d Nation*— Continued 
Atumic EDfror. International Conference on Peaceful 
Van of. See Atomic Enerw. International Con- 
Atonw-forponce plan. Kupi>ort. Sec Atoms-for-peace 
Austrian Indepeiid.-nce. resolution (1952) calling upon 

tilt' four (HiwerH to restort', 1009, 1013 
Cal<-n(lar reform. U.S. attitude, text of note from U.S. 

Keprewntatlve to S<tretnr}-Oeneral. 629 
Charter review, I'.S. attitude, 677 
China. CommunUt. efforts to obtain seat, 483 
Chln.~M> offshore Islands, efforts for cease-fire, 251, 254, 

2>«i. :{.■«•, 3«Vi. 4»I7. .'V)2. ".■{«. 755 
DlMirmanient. Krr Uisiirniament Commission, U. N. 
Educational exchange, I'.S. cooperation, 384 
Finance Corporation, International, U.S. support for 

eMlahllshment of, 22 
Internal lonni Ijiw Comml.s.slon. Sec International Law 

Palestine refuK<-es. Sec Palestine 

Refusee proErain. Sec Unlte<l Nations High Commis- 
sioner for ItefuKces; United Nations Relief and 
Works .Vgency for Palestine Refugees 
Restrictive business practices, 66.'), 976 
Spe<'lall7,ed iigencles. practical results of, 436 
Tei'hnlcMl assistance program : 

Randall Commission. sup|iiirt of. 351 
Resolution to render In field of freedom of informa- 
tion, 62 
Statement (lyodge) before committee of Congress, 663 
U.S. contrlbuUon to, .351, 663, 713, 861 
Territorial sea, regime of, draft articles of International 

Imw CommlRslon. 699 
r.8. contributions to agencies of. .351. 352 
U.S. support of, statements (Elsenhower; Dulles), 81, 
Unite<l Nations, American As.socintlon for, 466n. 768« 
I'nItiHl Nations A<i Hoc Committee on Forced Labor: 
Findings, no forced labor In T'nited States. 106, 107 
Integrity of members of committee maligned by Soviet 

and Soviet IiUk.- delegations, 108 
Reiwirt of. trt), 109 

Hignlllcance of Soviet refusal to reply to communica- 
tions of, 100 
United Nations Collective Measures Committee, 434 
Unlie<l Nnllims Command : 
Oilni'se ('ommunist offer to provide entry visas to rela- 

llveM of U.S. prisoners. 192. 214 
Korean ArmlNtict^ Agreement, letter and statements 

charging Communist violation of, liK). 427, 428 
Pernonnel detained by Chinese Communists, efforts of 
Kecretary-Ceneral for release, 122, 189, 268, 429. 
Krr aUo Protection of U.S. nationals 
Prote«l by <omiiuinder In Chief against Com- 
munUt attack on sabre Jets. 8!)1 
Unlliil Nntlons ComnilKHlon on Human Rights, session at 
Cirnera, to consider U.S. draft resolution proposed at 
earlier Krsslnn. .'JO 
Vnitnl Nnt|..n. C-.mmls«lon on Racial Situation In Union 

of H«.ulh Afrlro. U.S. ntlltnde. X3. 34, Ki 
Unltnl Nnllons tVonomlc and Social Council : 

Ilotti.l. Mr*. A. K., conllrmalion on S.mIbI Commission, 


United Nations Economic and Social Council — Continued 
Resolution establishing Commodity Trade Commission, 

Resolution on freedom of information, 59 
Resolution reconstituting Advisory Committee on Refu- 
gees as UNREF, 785 
United Nations Economic Commission for Asia and the 
Far East (ECAFE), U.S. delegation to first session 
of subcommittee on trade of Committee on Industry 
and Trade, 57 
I'nited Nations E>;onomic Commission for Europe (ECE) : 
Oil study by. U.S. view, 558 
Session (10th) at Geneva, 546 
United Nations Educational, Scientific and Cultural Or- 
ganization (UNESCO), U.S. contribution to. 352 
United Nations Expanded Technical Assistance Program. 

See Technical assistance under United Nations 
United Nations High Commissioner for Refugees, OflBce 
Attempts to integrate refugees into countries of resi- 
dence, address (Phillips), 652 
Reconstituted Advisory Committee to be known as U.N. 
Refugee Fund Executive Committee, 784, 862 
United Nations Children's Fund (UNICEF) : 
Aid to Vietnamese refugees, 227 
Surplus food, U.S. donations to, 206 
U.S. contribution to, 352, 713, 772 
United Nations Korean Reconstruction Agency (UNKRA) , 

aid to Korea, 297, 208, 299 
United Nations Population Commission, appointment of 

U.S. representative, 546 
United Nations Refugee Fund (UNREF) Executive Com- 
mittee, 784, 862 
United Nations Relief and Works Agency for Palestine 
Refugees (UNRWA) : 
Bona fides of recipients of relief, U.S. representation 

respecting, 25, 27 
Extension of mandate for five years, 24, 27 
Inventory of economic development programs, 7(54 
Nile water, project to lead under Suez to irrigate Sinai 
lands, 765 
United Nations Truce Supervision Organization : 
Report to United Nations, 303 
Status, 93, 301, 304 
United States and Germany: 19li5-1955, 1020 
United States Army and Navy, assistance in exodus of 

refugees from North Viet-Nam, 223, 224 
United States Educational Commission, 1039 
United States Escapee Program, legislative basis, objec- 
tive, and accomplishments, 416, 652 
United States Information Agency (USIA) : 

Director of to be member of Operations Coordinating 

Board, 430 
Independent organization, 535, 537 
Overseas programs, 170, .599 

Transfer to of U.S. Information Administration, 476 
United States naval vessels, loaned under agreements to 

China, 780; Italy, .38; .lapan, 282; Korea, 498 
United Stales naval ves.scls, received l)y Soviet Union 
under Lend-lease, agreements for return of part, 52, 
113, 909, 1060 

Department of Sfafe Bulletin 

United States Navy, atomic-powered submarines and de- 
velopment work to power larger vessels, 165 
United States Operations Mission, activities in Viet-Nam 
in fields of public health, agriculture, etc., 223, 226, 
United States Permanent Delegation to U.N., note verbale 
to U.N. concerning draft articles by International Law 
Commission on territorial sea, 699 
United States Tariff Commission : 
Hatters' fur, continuation of rate of duty, 657 
Presidential directive to investigate whether certain 
cheese imports should be subject to proclamation 
(1953), 815 
Screen-printed silk scarves, recommendation for in- 
crease in duty on, 52 
Walnuts and peanuts, recommendations as to restric- 
tions on imports, 655, 657 
Wood screws, decision of President not to impose new 
import restrictions, 97 
Universal postal convention (1952) : 
Adherence by Germany, 746 

Ratification by Albania, 545; Argentina, 826; Egypt, 
746 ; Korea, 746 ; New Zealand, 630 ; Spain, 1058 ; 
Venezuela, 366 
Universities, U.S., contracts for technical cooperation in 

underdeveloped areas, 348, 350, 721, 722 
UNRWA. See United Nations Relief and Works Agency 

for Palestine Refugees 
Upton, Robert W., appointment as U.S. member of Board 

of Review, under Paris agreements, 611 
Uruguay, friendship, commerce, and economic develop- 
ment, treaty with U.S. (1949), protocol supplementing 
(1955), 982 

Validation board for German dollar bonds, report (Sept. 

1, 1953-Aug. 31, 1954), 139 
Vallarino, J. J., credentials as Panamanian Ambassador, 

V-E Day, a decade after, address (Thurston) , 291 
Venezuela : 

Treaties, agreements, etc. ; 
Air transport agreement, with U.S. (1953), agreement 

amending (1954), 112 
Cooi)erative program, with U.S., in health, extending 

agreement (1943), 1020 
Cultural relations, convention for promotion of inter- 
American (1954), ratification, 244 
Universal jwstal convention (1952), ratification, 366 
^'essels : 

Polish merchantmen Praca and President Gotticald, de- 
tention by Chinese Navy, Polish charge against 
U.S. and U.S. denial, 430 
Supplies and services to naval, agreement (1955) with 

Peru, 282 
U.S. flag vessels, reimbursement of owners if seized on 
claim of territorial waters not recognized by U.S., 
U.S. naval, loans to China, small craft, 786 ; Italy, two 
submarines, 38; Japan, 282; Korea, 498; U.S.S.R., 
received under lend-lease, agreements for return, 52 
113, 969, 1060 

fndex, January to June 1955 

Viet-Nam, Free : 

Civil war in, abetted by Communist China and Soviet 

Union, 218, 378, 420 
Coal shipment, part of FOA aid program, 192 
Collins, Gen. J. Lawton, Special Representative of the 

President, 192, 423, 738 
Congressional hearings for 19S6 appropriations, 738 
Economic and technical assistance, FOA program of, 569 
Internal security forces, 12 
Laos and Cambodia, ethnical differences, 379 
Organizations aiding refugees, 223, 224, 227 
Political developments in, 838, 873, 1002 
President Eisenhower, letter supporting to Bao Dai, 

Chief of State, 423 
Secretary Dulles, visit to, 332, 461 
"Sects" and national police, question of authority of 

government over, 461, 727 
Treaties, agreements, etc. : 

Customs tariffs, convention creating international 
union for publication of (1890), and protocol (1949), 
adherence, 746 
Manila Pact, measure of participation in, 372, 378, 379, 

459, 726 
World Meteorological Organization, accession, 498 
U.S. Ambassador (Reinhardt), confirmation, 786 
U.S. defense support, 51, 169, 720 
Viet-Nam, North ; 

Communism in and exodus of refugees from, report by 
FOA Mission, 5, 8, 222; U.S. aid to refugees, 718, 
Political conditions, 229, 462 
Virgin Islands, program for improvement of teaching 

aided by Hampton Institute-Ford Foundation, 70 
Visas, Chinese Communist offer to provide to relatives of 

imprisoned U.S. military personnel, 192 
Volta River power dam. West Africa, 452 
Voluntary agencies, assistance to FOA in technical co- 
operation activities, 721 

Wadsworth, James J., addresses, statements, etc. : 
Disarmament, Soviet proposals and misrepresentation 

of Western position, 627, 900, 901 
South Africa, apartheid in, 32, 35 
Tunisian question, 30 
United Nations, in fight for freedom, 432 
U.X. Relief and Works Agency, 24, 26, 28 
Wailes, Edward T., confirmation as Ambassador to South 

Africa, 113 
Walnuts, no restriction on imports, 657 
Wan, Prince, of Thailand, tribute (Dulles), 332 
War Powers Act (1941), First, Title II, desirability of 

extending, 83 
Warning system, distant early, agreement with Canada 

(1955), entry into force, 1020 
Warren, George L., report on 8th session of Intergovern- 
mental Committee for European Migration, 403 
Waugh, Samuel C, Assistant Secretary for Economic 
Affairs : 
Addresses on foreign economic policy, 877, 958 
U.S. representative at Geneva session of GATT, 577 
Weather. See World Meteorological Organization 


Wflghtu and MfiiHuros, International Commlttpe on. and 
International Bureau of. activities and financial sup- 
|K)rt, M, W5 

WelKhtH and Measures. 10th General Conference on, ar- 
ticle (Crittenden). M 

Weiss. I'HUl Alfred. U.S. delegate to 12th assembly of 
International Union of Biological Sciences, 629 

Welch. Uollnrul. dcslKnatlon In State Department, 113 

Wentirn Kurojioan fnlon: 

Beglunlnw. 43. 8.\ 124. 183. 188. 376. 672, 67.'"., 677. 68o, 

724. r.T 
Council of. first meeting. 872. 911. 014 
Entry Into force of agreements establishing. 605. 769, 

(ierniany, member, INS, 872 
Italy, part In. 135, 136. 465 
North Atlantic Treaty, rflnlloii t", 294, 465, 831 
r.S. policy dc<-l»rntlon, sent by President Eisenhower to 
I'rlme Ministers of seven si;;niitory nations, 464, 608 
Value of, statements (DuUes), 328, 642 
Whalers, seizure by Peru on claim of territorial waters, 

Whaling, amendments to amended schedule to interna- 
tional whaling convenUon (1946), in force for listed 
states. 746 
White slave traffic, protocol (1949), amending agreement 
(IIHM) and convention (1910), acceptance by Luxem- 
bourg. 702 
WHO. Sre World Health Organization 
Wilson, Charles E., Sec-retary of Defense: 
Corri-spoiiilence with President Eisenhower: 
Military strength. Including personnel, 87 
Transiiilttliig draft agre<'ment for cooiieration with 
NATO regariling atomic information, 687 
Wlnterliiii. MaJ. <ieii. Sir .lohn, report on relinquishing 

U.S. U.K. Zone of Trieste to Italy, 400 
Women, Inter-American Commission of, meeting in 

Puerto Klco, a'.l 
Women, U.N. Commission on Status of, statements made 
before the Commission by Mrs. L. B. Hahn : educa- 
tional opiwrtunltles, 780; equal pay. 778; equal suf- 
frage, 777; older women workers, 780; technical as- 
slstani-e, 782 
WiMMlward, Kobert F., confirmation as Ambassador to 

CoHtn HIca. 113 
World Bank. Krc Inteniatlonal Bank for Heconstruction 

ami I)<'veliipnient 
Worl.l Health Organization (WHO) : 
Aiu<4>nibly. annual session. 861 
Delegatiiin for tleneva meeting. 112 
Technical c<K)peratlon in problems of humiin and animal 

health, .'m 
U.8. contribution to, 352 

World Meteorological Organization, convention (1947) : 
Atx-ession by Austria, 453 ; El Salvador, 982 ; Laos, 1020 ; 

Viet-Nam, 498 
Extension to Anglo-Egyptian Sudan, 866 
World Peace Conference, organized by Communists, 804 
World power, causes of emergence of U.S. as, 477, 518, 

World Power Conference, 981, 982 

Wriston, Dr. Henry M., chairman of Secretary of State's 
Public Committee on Personnel, 539, 621, 623, 627, 638, 
817, 850 

Talta papers, publication, statement (Dulles), 773 
Yugoslavia : 

Independence from Mo.scow, 216, 217. 292 

Soviet ofiBeials, proposed visit to, Yugoslav attitude, 933 

Soviet Union, new relations, significance, 913, 914, 933, 

Treaties, agreements, etc. : 

Agricultural surpluses, with U.S. (1955), and disaster 

relief shipments, 138, 204, 746, 847 
Economic aid, agreement with U.S. (1955), 498 
Plant protection convention (1951), ratification, 544 
Slavery convention (192G), protocol amending (1953), 

ratification, 630 
Trieste, memorandum of understanding with U.S., 
U.K., and Italy, implementation, 235 
Tripartite Balkan Pact (1953; 1954) with Greece and 

Turkey, 339, 342, 839 
U.S. defense support and direct forces supiwrt, 711, 720, 

724, 847 
U.S. gift of food for flood relief, summary, 420, 726, 847 

Corrections in Volume XXXII 

The Editor of the Bulletin wishes to call atten- 
tion to the following errors : 

February 21: page 304, right-hand column, 5th 
line from bottom of footnote 13, Security Council 
should read : 

V.N. Truce Supervision Organization 

February 2t: page 320, right-hand column, 4th 
line from bottom, February 7, 1954 should read : 

Febrxtary 7, 1953 

June 6: page 933, right-hand column, 13th line 
from bottom, Vladimir Popovic should read : 

Leo Mates 



Released July 1950 

Tm nit bj tb« Boperintendent of Docamenta, U.S. Qovcrnment Printing Office 
Waahtngton 25, D. C. - Price 30 cents 

0. 1. COVERNMEKT Pftir 



January 3, 1955 


le S. Jenkins ••........ 3 


by Secretary Dulles and Text of Communique 9 

VATE CAPITAL • Statements by Roger W. Straus ... 19 


Statements by Ambassador James J. Wadsworth 24 

Text of Resolution • 27 

For index see inside back cover 


FEB 2 1955 

%e Q)^ia,^tme7t^ €^^ ^late DUllGlin 

Vol XXXn, No. 810 • PrBUCATiox 5708 
January 3, 1955 

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Pitottnc OfBee 
WMttachn », D.C. 



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77w Department of State BLLLETiy, 
a iceekly publication issued by the 
Public Services Dirision, provides the 
public and interested agencies of 
the Goremment trith information on 
developments in the field of foreign 
relations and on the irork of the De- 
partment of State and the Foreign 
Service. The BL'LLETiy includes 
selected press releases on foreign pol- 
icy, issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as irell as 
special articles on various phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and interruitional agreements to 
tchich the United States is or may 
become a party and treaties of gen- 
eral international interest. 

Publications of the Department, as 
vcell as legislative material in the field 
of international relations, are listed 

China and the Stakes in Asia 

hy Alfred le S. Jenkins 

America has come to the fore as a world power 
at an especially trying and demanding time. The 
atomic age has arrived just when the world was 
beginning to find some solutions to the many prob- 
lems presented to it in rapid succession by the age 
of steam and electricity. Xo one doubts that these 
threshold years of the atomic age through which 
we are passing can bring us either undreamed-of 
good or indescribable evil. This is the promise — 
and the threat — of breathtakingly rapid material 
progress. "Whether we shall harvest the fruits 
of the promise or of the threat will depend upon 
the moral direction which humanity as a whole 
can give to the immense physical forces which it 
now possesses. This whole question is given 
added urgency by the highly charged situation 
in which a shrunken world is largely divided into 
two opposing camps, each possessed of the ability 
virtually to destroy the other. 

There are many who fear that this situation can 
end only in mutual destruction. The Communists 
would appear to believe that some great holocaust 
is in store for mankind, inasmuch as the one re- 
curring theme in Commtmist dogma is the "in- 
evitable"' fight to the finish between the Com- 
munist and capitalist worlds — despite Communist 
tactical protestations from time to time of peace- 
ful intent. This seeming conviction is indeed one 
of the greatest dangers of communism, for it is a 
certainty that both men and nations tend to gravi- 
> tate toward what they constantly hold before the 
mind's eye. I cannot believe, however, that we 
are inexorably moving toward some great Wag- 
nerian catastrophe on a world scale. The uni- 
versal will to live is a powerful force in God's 
hxunan exjjeriment on earth, and I cannot believe 
that anything as meaningful as that great ex- 
periment is destined either to explode or to fizzle 

There is no mistaking the fact that the in- 
ternational problems which our country faces are 
many and complex, and some are exceedingly frus- 
trating in that there does not seem to be an easy 
or quick solution to them. To some degree we 
Americans must share the guilt of aU, that these 
problems confront our present world in the forms 
which they take. I believe, however, that we 
will be called upon to contribute to their solu- 
tion in far greater measiire than we may have, 
through sins of either commission or omission, 
contributed to their emergence. This is natural 
and right, if only because our equipment to meet 
them is without any doubt adequate to the chal- 
lenge, provided we fxilly recognize and rightly 
use both our vast material and spiritual strength. 
We need to remind ourselves that our nation is in 
fact something new and diilerent on the face of 
the earth. It is the first nation in history which 
at its inception was founded consciously, care- 
fully, and prayerfully on the daring projxjsition 
that all men are created equal and which was 
designed to insiu'e for each individual personal 
freedom and opportunity, as nearly equal and 
unlimited as imperfect human institutions can 

I have devoted this much time to reminding 
ourselves both of the precarious state of our world 
and of the challenge which is presented to our 
country, because Asia's problems are peculiarly 
the product of these forces which have converged 
on the 20th century and because Asians seek pre- 
cisely what we ourselves have sought and won in 
such gratifying measure. 

Most of Asia has up to now not enjoyed much of 
the material, social, and political advantages which 
the 20th century has brought to many of the other 
areas of the world. It has been said that Asia for 
some time has had a window on the 2«>th centurv 

January 3, 7955 

and that it is now determined to find the door to it. 
This determination is as real and strong as it is 
natund and right, Asia will find this door, or 
come very near to battering down our whole struc- 
ture in the attempt. The real Asian revolution of 
our time is aimed at very nearly the same things 
which we ourselves respect as man's highest val- 
ues : freedom of each individual to walk upright 
in the dignity of his God-given manhood, the pro- 
vision of material necessities and some comforts 
for all, and a sense of "belonging" to a group of 
which he can be proud. The great tragedy is that 
tbe world Communist conspiracy has with some 
saocesB attempted to ride the crest of this largely 
readymade, truly Asian revolution, diverting it 
from its natural course and denying to those who 
have been victimized most of the things which 
they seek. And the irony of it is that it is the 
free world which has developed the institutions 
and the experience which can best produce those 
▼ery things. 

Asia's SUke in Asia 

Our stake in Asia, while it includes our material 
and other investments there, has far broader mean- 
ing also. In the closely interdependent world of 
today everyone has a stake in what happens in 
Asia, and for no lesser reason than concern lest 
oar whole human experiment on this little globe 
may end in an explosion rather than continue with- 
out major interruption on its evolutionary way. 
We, of all people, should be able to understand 
^\sian aspirations. And we must never for one 
moment forget the obvious fact that it is the 
.\=ians themselves who have the greatest stake of 
all in Asia. It is only by holding to this truth that 
oar own interests there will be served in the long 
run. The extent of Communist objectives is easily 
discerned : the Communists will go just as far as 
free men will let them. If we have learned any- 
thing in A-sia in the past few years it should be 
the lesson that it is largely up to the threatened 
Aaians to stop communism in Asia— with frater- 
nal (support from other free peoples where it is 
wanted and where it will be effective. We must, of 
«wirse, in the last analysis reserve freedom of 
ar^ion in nny area open to us when we believe our 
mterests to be threatened. But the 
1 t mutual one and will be solved satis- 

facumly only in willing and understanding con- 
cert. W e sincerely believe that our stake in Asia 

is in no way incompatible with Asia's own stake 
in Asia, and I shall speak of it in this sense. 

Our stake in Asia is in fact now gravely en- 
dangered partly because for so long we and most 
of the West were scarcely aware that we had very 
high stakes there. Asian questions are the most 
controversial because they are perhaps the least 
understood. The Soviet Union, however, partly 
because of the dictates of geography, has always 
had to keep an eye on ALsia. It seems to have rec- 
ognized quite early those tremendous forces in 
Asia which are revolutionary and to have seen 
its opportunity to capture those forces for the 
sinister purposes of Eussian imperialism, using 
as vehicle and guise the mechanism of the so-called 
world socialist revolution powered by the Krem- 
lin and the Communist Party. This was made 
easier after World War 11 not only because of the 
increased economic misery and social ferment re- 
sulting from protracted warfare and the tremen- 
dous difficulties faced by those nations which had 
recently won independence, but also because of the 
widespread and deep resentment of previous forms 
of Western exploitation in the area. 

The undeniable fact that Western activities in 
Asia also brought much that was good did little 
to salve injured Asian sensibilities. It is human 
nature that help to the weak may be resented al- 
most as much as harm, and in some subtle ways 
perhaps even more. Any man worthy of the name 
wants to stand squarely on his own two feet and 
compete in indxistry, science, and education, ra- 
ther than accept a donation and feel obligated to 
the donor. This is a problem which we frankly 
have to face in our aid programs to free peoples 
who want to preserve their freedom. Our inten- 
tions are good, and the need may be great — in the 
interest of the recipient and in our own enlightened 
self-interest — but the emphasis must be on frater- 
nal help to stand up straight until we can look each 
other in the eye at the same level and proceed with 
the proper business of mutual contribution to 

Communism is eager to promise what Asia 
wants: economic plenty and even individual and 
national dignity. It is not too difficult to sell these 
false promises to people who are to a considerable 
extent politically inarticulate. The surprising and 
heartening thing is that under the circumstances 
communism has not made more progress than it 
has in postwar Asia. 

Our central problem in Asia is the coming to 

Department of Slate Bullelin 

power of a fanatically hostile Chinese Communist 
regime in close partnership with the U. S. S. R., 
to all appearances charged by world communism 
with special responsibilities for Communist en- 
slavement of the rest of Asia. In addition to the 
manpower of China and its material resources, 
largely potential, communism wants to control the 
industrial capacity of Japan and the food and 
mineral resources of Southeast Asia. 

Communist Success in Cliina 

A great deal has been said about the reasons 
for the Communist success in China, and much of 
this has been highly charged with emotion. This 
is understandable. I confess to feeling very deep 
emotion myself about any development which 
affects our national interest so greatly and which 
affects the lives of 600 million hiunan beings even 
more immediately. But it is important to remem- 
ber that one of the chief causes, if not the chief 
cause, of the Communist triumph in China is that 
the Communists successfully hoodwinked a large 
proportion of the Chinese people into believing 
that they could provide what the Chinese wanted. 
For countless millions this was their own plot of 
land; for hundreds of thousands of others, in- 
cluding the intelligentsia, it was enlianced na- 
tional prestige. Private business was promised a 
relatively long life and an easy and promising 
transition to socialism. The workers were assured 
that eventually they would inherit the whole and 
be the masters. All of this was made even more 
attractive by the familiar, spurious, and always 
short-lived Communist device of the "United 
Front," by which the Communist Party purports 
initially to cooperate with non-Communist parties 
and institutions until the growth of police state 
controls makes this sham unnecessary. 

This program, to the uninitiated Chinese, was 
enticing — as it appears on surface examination to 
many others in predominantly agrarian Asia. 
Communism was also portrayed as the "inevitable 
wave of the future" and as the newest and most 
'progressive of all ideologies. "New" and "pro- 
gressive" are particularly appealing terms to 
peoples who have comparatively recently and with 
agonizing embarrassment been forced to view 
some important elements in their civilization as 
"outmoded" and "lagging." 

We know not only that communism is actually 
•'old hat" but also that it has been tried and found 

wanting in practically all respects, and particu- 
larly in those respects most essential to man's 
happiness and well-being. "We know that Com- 
mimists, conversely, in speaking of our free sys- 
tems as "old," "outmoded," and "discredited," are 
harking back several decades to the growing pains 
and admitted dislocations and injustices which 
marked the emergence of industrial capitalism in 
the period of the Industrial Revolution, and that 
they are depicting even this adolescent age of 
capitalism with wild exaggeration. "We know that 
democracy and planned capitalism have solved 
these problems to an amazingly successful extent, 
while preserving individual liberties and the 
drive, virility, and ever-renewed newness which 
free thought and essentially free enterprise and 
competition alone can produce — and wliich com- 
munism can never achieve, by its very nature. We 
know, indeed, that theoretical communism has 
proved unworkable largely because it is blind to 
the basic nature of hiunanMnd; that when it is 
tried it evolves, despite itself, into a tyrannical, 
bureaucratic dictatorship with privilege for the 
few and the most clearly stratified society 

Many Asians know none of these things, or are 
not convinced of them. We are trying our best 
to help them know the truth. I say we are trying 
our best; I hope we are. We estimate that the 
Communists are spending at least ten times as 
much money on their propaganda campaigns as 
we are in the informational aspects of our "cam- 
paign of truth." We may perhaps take some com- 
fort from the belief that the truth, at least where 
it can be seen plainly, may be more cheaply and 
successfully marketed than even cleverly packaged 

Disillusionment With Communism 

Fortunately there are holes in the Iron Curtain. 
The truth can be seen fairly plainly in parts of 
Germany, and as a result 1,800,000 refugees in 5 
years have chosen truth and freedom at great per- 
sonal sacrifice. The truth is more clearly emerg- 
ing to the Vietnamese; nearly a half million 
refugees have already chosen to forsake Ho Chih- 
minh's "paradise," taking with them what few be- 
longings they could. In divided Korea the truth 
is not hard to discern, and the overwhelming ma- 
jority, not only of North Korean but of Chinese 
prisoners of war as well, responded to the pull of 

January 3, 1955 

truth by forsaking ties of home and family and 
ek'ctin.' to join forces witli the truth. The Chi- 
nese und North Koreans now know connnunism 
intinuitelv, and most of them appear to want no 
more of it. Tlie Communists- ill-fated Korean ad- 
venture ironically but happily established two 
principles which n.ay yet prove to be their own 
undoing: the principle of determined collective 
security through the United Nations and the pnn- 
ciple of nonforcible repatriation. The two million 
Chines in Hritish Hong Kong are close enough to 
stark realities to know the truth; and in Hong 
Kong each and every succeeding year since the 
Communist takeover of the mainland fewer Chi- 
nese Communist flags and more Chinese National- 
ist flags have been displayed on the respective na- 
tional holidays. 

The gains which communism may achieve 
through its mammoth propaganda campaign can 
be more than ollset under circumstances where 
communism in action can be clearly seen. An 
iron curtain is literally the shield of communism 
and the badge of basic failure and fear. The 
Communists want to obtain vital materials 
through barter, but they fear above all things an 
exchange of ideas and accurate knowledge. 

• For those behind the Iron Curtain knowledge 
has come too late to save them, at least for a while. 
The Chinese, among the other victims, have 
learned the hard way. The peasant who was 
|)romised land Krst actually received it, but many 
have already been dispossessed by the process of 
state collectivization ; and the others, already suf- 
fering from Communist requisition of the fruits 
of their toil, now see the same fate in store for 
them. Resistance there has surely been, but the 
Communists have been careful to vary the pres- 
sure for collectivization in order to restrict resist- 
ance to proportions which will be manageable for 
their increasingly eflRcient police-state methods. 

Perhaps the greatest of communism's failures 
has l)een with regard to food production. The 
march of forced collectivization has invariably 
left both bloodshed and famine in its wake, and 
further misery is surely in store for a China whose 
marginal subsistence level has always been precar- 
ious. At times when natural disaster is added, 
suffering is incalc\dably compounded. In the 
past other countries have rushed to China's aid at 
such times. During the recent impreccdented 
flootl.s, however, while China was continuing to 
ship vast quantities of foodstuffs to the Soviet 

Union in payment for industrial and military aid, 
China twice rejected offers of help from the League 
of Red Cross Societies. And at the same time 
Communist China's own radios were callously re- 
cording the magnitude of suffering visited on its 
people, in large measure due to the false pride of a 
boasting regime. 

Inhuman Treatment in Red China 

As for other characteristics of the Red Chinese 
regime, everyone has read reports of the countless 
killings and induced suicides in connection with 
the so-called reform of agriculture, business, 
labor, education, and religion ; of the turning of 
children against parents and of friend against i 
friend; of mass and individual "brain-washing";, 
of forced labor camps; of the "People's Courts" 
where "justice" is made the shameless handmaidenj 
of politics; and of the inexcusable treatmenf" 
which our own businessmen and missionaries an<] 
in the early days, our officials have received from! 
the Chinese Communists. There are still 28 k 
American civilians languishing in Chinese Com-' 
munist jails under intolerable physical conditior 
all but incommunicado, many of them withoi 
trial or even a statement of charges against theE^ 
The recent sentencing of 13 Americans on "esp^ 
onage" charges is but the latest shocking chapt _ 
in the Communist mistreatment of foreign nation- 
als, and evidence of their utter disregard for com- 
mitments which they assumed under the Korean 
Armistice Agreement on prisoners of war. 

Even better known and documented is the ex- 
ternal conduct of Red China, wliich includes overt 
aggression in Korea and the related defiance and 
contempt shown for the United Nations, in which 
the regime claims a seat "by right''; semicovert 
but very substantial aggression against Indochina ; 
forcible occupation of Tibet; subversion and in- 
timidation throughout Southeast Asia ; unspeak- 
able atrocities against prisoners of war ; conducting 
an extortion racket among overseas Chinese, using 
relatives on the mainland as hostages; and spon- 
sorship of a huge trade in banned narcotics in or- 
der to gain badly needed foreign exchange. 

Is there no good that can be said of the regime i 
There is a little. The streets are reported to be 
cleaner, and there have been spotty advances in 
public health. On the other hand there appears tc 
be a rise in tuberculosis, especially among over- 
worked cadre and industrial workers, and an m- 

Departmenf of S»afe Bo//efin 

creasing incidence of nervous breakdowns and 
)tber mental troubles, maladies with which China 
liad amazing]}' little experience before the Com- 
nunists came. There have, it is true, been some ad- 
rances in industrial recovery and in new industrial 
jnterprises. Such advances have for the most part 
been inefficient and wasteful of himian energy and 
hfe, but these factors seem to be of minor con- 
cern to the regime, which is bent upon building 
I heavy-industry base. Communist China's 5- 
year program, however, is seriously behind sched- 
ile. The Communists lack trained technical and 
managerial personnel, and thei-e are indications 
that the Chinese are not as impressed as their 
propaganda would have one believe with their 
results in emulating "advanced Soviet methods." 

Tremendous Energy in "New China" 

It would be a mistake to assimie, however, that 
there is not tremendous force beliind the so-called 
"New China." Most of this force derives from the 
energy of the true Asian revolution, which in 
China has been captured and imperfectly but dan- 
gerously harnessed by communism — but force is 
there. In a few areas, and at ghastly cost in others, 
communism itself has been able to supply in 
limited and usually warped form a few of the 
things which the Chinese sought and needed. 
Communism has succeeded to some extent in flat- 
tering youth and women by giving them difficult 
and important jobs to do. Insofar as communism 
with its demands and challenges resembles a re- 
ligion, albeit a perverted and materialistic one, it 
has helped fill the uncomfortable vacuum left by 
the earlier breakdown of the ancient Confucian 
morality and of the closely knit, authoritarian 
family. Last but not least, the Chinese Com- 
mimist regime, while it has certainly not brought 
to the Chinese a national dignity by its lawless 
acts, has managed to get very much into the lime- 
light and with Soviet help has achieved a military 
potential of menacing proportions. Although 
Communist China was at the Geneva Conference 
•argely because it was the chief instigator of the 
roubles which the Conference itself was designed 
settle, its presence there inescapably gave it 
idded "prestige." Even those Chinese who in 
heir hearts oppose the reginie must derive some 
atisfaction from this "prestige," evei\ though they 
nay have vastly preferred that it be attained by 
aore honorable means. 

China and the Soviet Union are losing no time in 
attempting to capitalize on the Mao regime's 
growing prominence, in an attempt to gain it 
international acceptance, through wider diploma- 
tic recognition and a seat in the United Nations. 
Tlie current Communist tactic of a "peace of- 
fensive" is admirably suited to the need quickly to 
garb the Mao regime in respectability. The Sino- 
Soviet agi-eements of October 12, 1954, seem espec- 
ially to be designed further to increase Communist 
China's prestige and at the same time to give at 
least the surface appearance that Commimist na- 
tions can deal with each other on the basis of 
equality and reciprocity. We have all along con- 
sidered the Red Chinese regime as a willing accom- 
plice of the Soviets and, as such, a sort of junior 
partner rather than a full-fledged satellite in the 
Eastern European sense. These agreements 
strengthen this view and at least on the surface 
appear to create a kind of !Moscow-Peiping axis 
within the Communist orbit, in further contrast to 
Moscow's relations with its Eastern European 
satellites. This surface "government-to-govern- 
ment" camaraderie, however, does not necessarily 
alter the subsurface unified Conmiunist Party con- 
trol of both governments. 

"We have learned to be wary of frenzied Com- 
munist protestations of peaceful intent such as are 
now issuing forth with stereotyped consistency 
from all Commimist capitals. I doubt that under 
present conditions of the world the Conmimiists 
want a big war. But experience has shown that 
they are never averse to small wars if they think 
their ends can be gained thereby. The trouble is 
that we may not always succeed in preventing 
small wars from growing. Communists consider 
that in a very real sense they are always at war 
with the non-Commimist world and that periods of 
cease-fire are but a tactic of expediency in a con- 
tinuing war. Peace is but the other side of the 
war coin. George Orwell may prove to be one of 
the most perspicacious writers of oui- time. 

The Communists need a "breather" now, and 
they will doubtless get it. The free world is not 
going to start a war. For that reason they can 
get a "breather" any time they want it and for a 
duration of precisely their own determining. 
This is a great advantage for them, but I see no 
sensible way out of it. At the same time, so long 
as the Communists are the self-proclaimed mortal 
enemy of all who are not in their camp (in their 
eyes, and by their own admission, they recognize 

'onoory 3, 7955 

no "neutrals"), I can see no rhyme nor reason 
whatsoever in helping them to solve their great 
internal difficulties, in helping them to make the 
most of these breathing spells ^hich they can al- 
ways have. A "peace offensive" for their pur- 
poL is in large measure a bid for trade-*spe- 
dalh- trade in strategic materials in which they 
are short-and in this instance also a bid for full 
free-world acceptance of Communist China into 
the family of nations. 

Question of Recognition 

We do not recognize the regime of Mao Tse- 
tung as representing the will of the masses of 
Chinese people, for whom we continue to have the 
deepest feelings of friendship. We cannot recog- 
nize this regime, and we consider it inconceivable 
that it should be seated in the United Nations 
when its entire 5-year history has been a clear de- 
nial of the basic principles on which that organiza- 
tion is founded. 

We are determined in our support of Free 
China because we believe not only that it more 
truly represents the wishes of the Chinese people 
than does the Peiping regime but also that it 
better serves the interests of the free world 
as a whole, as well as our own interests. The 
Government of the Republic of China has made 
great strides in many areas during its time on 
Formosa. We will not forsake the people of Free 
China. It would clearly be the height of in- 
justice to allow the 10 million Chinese there to fall 
under Communist sway against their clearly dem- 
onstrated wishes. These people know commu- 
nism. Many of them have relatives on the main- 
land who have suffered greatly due to the excesses 
of the mainland regime. Furthermore, if there 
were not a free Chinese government which is a 
going and growing concern, the Chinese Commu- 
nists would have a much stronger hand among the 
12 million overseas Chinese throughout Southeast 
Asia. Tlie direct and indirect influence which 
could then be more effectively wielded by the 
Communists in the economic and political life of 
these countries would be dangerously enhanced. 

In addition to Communist China the only terri- 
torial pains which communism has made in Asia 
are in North Korea and North Viet-Nam. These 
gains are tragic, most of all for the peoples di- 
rectly affected. But there is much from which 
we can take encouragement. For one thing, no 

group of people has yet voted itself into comma- ; 
nism. The precedent of collective action against ^ 
overt aggression gives us hope that tliis road may ^ 
be forever closed to communism, and the growing ' 
awareness among Asians of the reality of Com- 
munist threats gives us hope that infiltration and 
subversion wiU be increasingly difficult. Our 
military support and technical cooperation pro- 
grams in the Far East are proof of our desire to - 
assist the independent governments of the area in 
their difficult tasks of meeting defense needs and - 
at the same time building stable and progressive 
societies patterned on democratic principles. 

I do not begin to believe that the Communists 
are pursuing with masterly skill an infallible blue- 
print of strategy in Asia or anywhere else. In 
Japan the Communists counted upon a long and 
vmpopular occupation and upon economic dista'ess 
to make the Japanese people turn to communism. 
This has not happened. Japan has now resumed 
an honorable place in the community of nationf 
and despite some unsolved economic difficulties has 
made a most impressive recovery. The Commu- 
nist aggression in Korea was not only throwi 
back: it estabUshed the two very important prin- 
ciples of collective action against aggression anc 
of nonforcible repatriation. The Communisti 
have met with a near total defeat in the Philip- 
pines, after a period which must have given then 
considerable cause for hope. Indonesia, according 
to the Communist timetable, was to have faller 
some 4 years ago, but the Communist uprising at 
that time was put down with determined effective- 
ness. The Communists have gotten virtually no- 
where in Thailand, Burma, or India. Commu- 
nist-led rebels in Malaya are still a problem, but 
less so than was the case some months ago. There 
appears to be a real determination on the part ol 
the free peoples of the Associated States to remair 
free, and the recent pact signed at Manila should 
help insure that this will be possible. Edmuno 
Burke once said, "The only thing necessary foi 
the triumph of evil is for good men to do nothing. 
Asians are increasingly aware that there are things 
to be done if their freedom— in many cases re- 
cently won— is to be safeguarded. And in the last 
analysis, the only effective anticommunism in Asia 
must be Asian. 

We should not be overly concerned by differ- 
ences which may be debated among the free-world 
nations. In areas of free speech things are never 
so bad as they sound, just as in areas of controlled 

Department of State Bulletin 

peech things are never so good as they sound, 
^here will be differences among free friends. But 
spendable friendship is needed in order to pre- 
srve freedom, and I believe that this is a deep 
onviction of the free world. We cannot go it 
lone and we have no desire to try it. We will all 
lake some mistakes, for our governments are made 
p of human beings ; but our aim is to achieve the 
ighest possible degree of fraternal concert with 
iir friends. 

Asia is determined to find a new day. Wliatever 
se may be in doubt in that changing continent, 
is a certainty that a determined effort is going 
< be made by Asians to better their lot — through 
hatever auspices appear to them most attractive. 
The whole world has high stakes in Asia, and 
e, the wealthiest and most powerful nation in the 
ee world, have special and inescapable responsi- 
lities for the outcome in Asia, although the solu- 
' on in the last analysis must be essentially of, by, 
id for Asians. 

Recently a great friend of the American people, 
id one of the great men of all time, Winston 
Tiurchill, had this to say of the United States: 
There is no other case of a nation arriving at the 
mmit of world power, seeking no territorial 
dn, but earnestly resolved to use her strength and 
jalth in the cause of progress and freedom." 
ad grant that our nation will always measure up 
this great compliment. As long as it does, pro- 
ded we look also to defense through material 
rength, that spiritual drive which is the indis- 
nsable ingredient of the American spirit will 
ford us at least the surest security which can be 
d, in a future which must be dangerous and 
[venturesome at best. For this I believe, and I 
lieve it more the longer I watch events in both 
1 mispheres : a nation, like a man, can in the long 
n, and especially in things that really matter, 
: ap only what has first been sown. 
It is true that the real battle between com- 
: imism and the free world is for the minds and 
. arts of men. It must be demonstrated beyond 
1 e power of iron curtains to hide that free systems 
<* government and economy can inspire the hearts, 
<p the energies, and meet the needs of mankind 
i comparably better than can systems of state 
lamentation and control. This is the battle 
■'lich we welcome, for we can win that battle. 
1 it we and the free world must survive, in order 
t fight it. We cannot afford to allow ourselves 
t be lulled into a sense of false security by the 

"peace offensive" soporific. Certainly at the same 
time we must continually seek safe avenues to a 
more peaceful world. As President Eisenliower 
recently put it, "Since the advent of nuclear weap- 
ons, it seems clear that there is no longer any 
alternative to peace, if there is to be a happy and 
well world." But we must keep our guard up. 
Our guard is up at present. I know of no spot in 
the free world which the Communists today can 
attack with impunity. We must keep it that way. 

• Mr. Jenkins, author of the above article, is 
Officer in Charge of Political Affairs, Office of 
Chinese Affairs. His article is based on recent 

North Atlantic Council 
Meets at Paris 


Press release 726 dated December 21 

I returned yesterday from the Paris meeting of 
the Nato Council. The commxmique which was 
issued reports in summary form what took place. 
I would like to comment briefly on two items in 
the communique. 

The first was the statement that Soviet policy 
continues to be directed toward weakening and 
dividing the Western nations and that the threat 
to the free world has not diminished. It is sig- 
nificant that there was complete agreement on this 
proposition by all of the 14 nations represented 
on the Nato Council. 

During the course of the discussion of this mat- 
ter at the Council, I made a statement on behalf of 
the United States delegation in which I said that 
Soviet policy is like a powerful stream, the surface 
of which is sometimes ruffled, the surface of which 
is sometimes calm, but that we cannot judge the 
force and direction of the current merely by look- 
ing at the surface manifestations. The important 
thing, I said, is that we should proceed in our own 
way, steadily building our own strength and our 
own imity upon which our strength depends. 
There were, I said, three great dangers to be 
avoided : 

( 1 ) that we might by surface calm of the Soviet 
stream be lulled into a false sense of security ; 

Jiuory 3, 7955 

(2) that by the roupli appearance of the Soviet 
stream we mipht be frightened into a state of 
paralysis, or 

( 3 ) be provoked into ill-considered and divisive 

In developin<r the first danger, I pointed out 
that behind the rec«nt Soviet peace offensive was 
to be found ever-increasing military strength far 
beyond defensive needs and the development of 
subversive activities in every free country, and 
notably attempts to exploit the theme of colonial- 
ism so as to divide and weaken the free world. 

In connection with the second danger — being 
frightened into inaction — I quoted violent Soviet 
threats which had been directed against the West 
in connection with the Marshall plan, the adoption 
of the North Atlantic Treaty, the adherence of 
Turkey to the North Atlantic Treaty, the develop- 
ment of the Federal German Republic in West 
Germany, and against Yugoslavia when it broke 
loose from the Soviet Communist orbit. At that 
time, the Soviet Union denounced the treaty of 
friendship which had been made in 1945 between 
Yugoslavia and the Soviet Union. 

I recalled that, at the time of the conclusion of 
the Japanese peace treaty, the Communists had 
suggested that, since the peace was not joined in by 
the Soviet Union, it was a separate peace which 
violated the armistice and that the Soviet Union 
would be free to resume hostilities. 

There is a striking parallel in the past to what 
is going on in the present. I expressed confidence 
that, if we persist in building defensive strength 
and unity in Western P^urope, it will actually pro- 
mot* peace. 

To ilhistrate the third danger of being provoked 
into and divisive action, I referred to the 
provfxation to which the United States Ls now 
being subjwte<J by f'ommunist China and the pa- 
tience being demonstrated by our country under 
the din-ction of President F^isenhower. 

I UH)k o<;casion to thank the Nato nations which 
were niemljei-s of the UniU'd Nations for their 
support of the recent United Nations resolution' 
condenming the Chinese Communists and calling 
for the liberation of our wrongfully imprisoned 

The second item of the agenda to whicli I would 
allude is that which reports the approval of a re- 
port by the Military C:ommittee which defined the 

■ Uuijjrriw of Dw. 20. 1054. p. 032. 

most effective pattern of Nato military defensive 
strength for the next few years, taking into ac- 
count modem developments and weapons and 

This report, which assumes a unity that in- 
cludes Western Germany, shows for the first time 
the means of developing a forward strategy which 
could be relied on to protect Western Europe from 
invasion. As that capability is developed, it wiU 
surely constitute the strongest deterrent against 
military aggression. Furthermore, it will assure 
that, if unhappily aggression should be attempted, 
it would not succeed and that the aggressor would 
be thrown back at the threshold. Thus we see the 
means of achieving what the people of Western 
Europe have long sought — that is, a form of secu- 
rity which, while having as its first objective the 
preservation of peace, would also be adequate foi 
defense and which would not put Western Europt 
in a position of having to be liberated. 

The Council action made it clear that, in ap 
proving the report, it did so for the purposes o1 
planning and preparation and that this did noi 
involve a delegation to the military in a fielc 
which is properly the responsibility of govern 
ments with respect to putting plans into action ii 
the event of hostilities. The situation is thus nor 
mal in this respect. In this country, as in th« 
other Nato countries, it is the civil authorities o 
government and not the military who make thi 
grave decisions. That, of course, will be the situa 
tion as regards the North Atlantic Treaty Organi 

The Council meeting showed a spirit of fellow 
ship and a spirit of optimism which grew out o 
the prospect that the Western European unit; 
planned by the recent London and Paris accord 
would shortly become an accomplished fact an( 
thus both strengthen Nato and assure that it wil 
effectively serve its purpose in deterring aggres 
sion and preserving peace. 


Following is the text of a communique issue* 
at Paris on Decem,her 18 hy the North Atlanti 
Council at the close of a 2-day session: 

1. The North Atlantic Council, meeting ii 
Paris in ministerial session under the chairman 
ship of Mr. Stephanos Stei)hanopou]os, Foreig 
Mini.ster of Greece, completed its work today. I 

Department of Slate Bullel'n 

was attended by ministers of foreign affairs, de- 
fence, finance, economic affairs and defence pro- 

2. The Council noted the progress report by the 
Secretary General covering activities and develop- 
ments in the organization during the past twelve 

Ministere welcomed the extension of political 
consultation within the Coimcil. 

They noted with interest the steady progress in 
the infrastructure programmes and in emergency 
planning in the civil field, and recommended the 
continuation of these studies and of this work, in 
particular in civil defence. 

The report referred to the dissemination of in- 
formation about Xato and to the forthcoming 
publication of the Secretary General's five-year 
report. It also emphasized the value of the visits 
of parliamentarians, of the development of volun- 
tary organizations interested in Xato, and of the 
tours of journalists to member countries. 

3. In accordance with its regular practice, the 
Council exchanged views on matters of common 
concern in the international situation. 

The Council welcomed the efforts being made 
under the aegis of the United Xations for a world- 
wide agreement for a general limitation and con- 
trol of armaments. 

4. The Council agreed that Soviet policy, 
backed as it is by ever-increasing military power, 
continues, in spite of some outward signs of flexi- 
bility, to be directed towards weakening and divid- 
ing the Western nations. Soviet policy contributes 
no constructive solution for ensuring world 
security and for maintaining the freedom of 
peoples. It provides no ground for believing that 
the threat to the free world has diminished. 

The Council reaffirmed its will to build for peace 
on solid foundations of unity and strength. The 
Council noted with satisfaction the progi"ess wliich 
has been made towards bringing into effect the 
Paris Agreements which it regards as an essential 
contribution to the unity of Europe, to the 
'security of the free world, and thereby to the 
cause of peace. 

5. The Council took note of a progress report 
submitted by the Military Committee. It noted 
with satisfaction that a request by SACEUK 

Supreme Allied Commander Europe] had led to 
legotiations between the Xetherlands and the 
™ted States, the recent completion of which will 

permit the establishment of a Shape [Supreme 
Headquarters, Allied Powers in Europe] air de- 
fence technical centre in The Hague at which sci- 
entists of all member nations will be able to con- 
tribute to the development of air defence. The 
Council also noted that the Xato Defence College, 
now in its fourth year, has made a valuable con- 
tribution of qualified personnel to staffs and agen- 
cies of Xato and of member governments. 

6. The Council considered a report by the Mili- 
tary Committee on the most effective pattern of 
Xato military defensive strength over the next 
few years, taking into account modem develop- 
ments in weapons and techniques. It approved 
this report as a basis for defence planning and 
preparations by the Xato military authorities, 
noting that this approval did not involve the dele- 
gation of the responsibility of governments to 
make decisions for putting plans into action in the 
event of hostilities. 

7. The Council considered the report on the an- 
nual review for 1954. which sets forth the co- 
ordinated Xato defence programmes for the next 
three years. The review was based on the Coxmcil 
directive adopted in December. 1953. that it would 
be necessary for member comitries to support over 
a long period forces which, by their balance, qual- 
ity and efficiency, would be a major factor in de- 
terring aggression. 

The ministers considered and accepted as mili- 
tary guidance a report by the Military Committee 
giving its comments on the 1954 annual review. 
This report stressed that the level of forces for the 
defence of the Xato area should be maintained as 

The Coimcil noted that there had been an in- 
crease in the strength of Xato forces and further 
steady improvement in their efficiency over the 
past year. This improvement in quality resulted 
primarily from the large-scale combined exercises 
held by Xato land, sea and air forces, from the in- 
creases in operational and support units and from 
the supply of large quantities of new equipment. 

The Council expressed its satisfaction at the ex- 
pansion of European production of defence equip- 
ment as well as the continued provision of Xorth 
American equipment, and urged continued co- 
opeKition in research and development. 

Following the recommendations made in the an- 
nual review report, the Council adopted firm force 
goals for 1955, provisional goals for 1956 and 

lanuary 3, 1955 


planning poals for 1957. The force goals agreed 
ujwn for 1955 are of about the same numerical 
strength as those for 1954, but further improve- 
ments in training, equipment and effectiveness are 
provided for. The German defence contribution 
under the Paris Agreements remains, in the opin- 
ion of the Council, an indispensable addition to the 
defence effort of the West. 

8. The Council noted with satisfaction the en- 
couraging economic developments in many mem- 
ber countries over the past year and particularly 
the expansion of production in several European 
countries. The additional resources thus made 
available have enabled further improvements to be 
made in general welfare and social progress, while 
at the same time permitting a continued contri- 
bution towards increases in the strength and effec- 
tiveness of Nato forces. The Council recognised 
that further steady growth in the economic 
strength of the alliance as a whole is essential in 
order to preserve and increase the well-being and 
security of all member countries, and that to this 
end it is necessary to strengthen economic coopera- 
tion between member countries. 

Strategic Concept 

PreM rdeniie 728 dated December 21 

At hi-H news conference on December Bl, Secre- 
tary DulUs was ashed a series of questions relating 
to whether or not a reduction in military forces 
meant a corresponding reduction in U.S. milifaTy 
effectiveness and the effect upon U.S. commit- 
ments throughout the world. He was asked., in- 
itially, whether there is a contradictory element in 
defending nations subject to possible Communist 
aggression in the Far East and at the same time 
planning for the withdrawal of existing forces 
there. Mr. Dulles m/ide the following reply: 

No, there is no contradiction of American pol- 
icy. In fact, that is a consummation of American 
policy which has been set forth rather clearly. 
Almost exactly a year ago today— I think it was 
on December 26— the President announced the 
first deployment of United States troops from 
Korea and he said that that was part of the policy 
which we were adopting of depending in that area 
primarily upon mobile striking power rather than 
upon having in place enough troops themselves to 
throw back an assault.* 

' fiuuxn.i of Jan. 4, 1054, p. 14. 


It is the basic conception of the United States 
and its present policy that it is not possible for 
the United States or, indeed, for the United States 
and its allies to maintain at all danger points 
around the Soviet orbit of some 20,000 miles 
enough forces in place to withstand an assault at 
each one of the points where the Soviet Union or 
its Chinese Communist allies could launch a land 
attack. The attempt to do that would be futile, 
and it would mean real strength nowhere and 
bankruptcy everywhere. Therefore, we are re- 
lying in most of the areas of the world primarily 
upon the deterrent of striking power as an effec- 
tive defense. 

You may recall that at the time of the signature 
of the Korean Armistice there was signed a dec- 
laration by the 16 nations that participated in 
the fighting under the United Nations Command, 
a declaration that, if the Communist attack should 
be resumed, it would not, probably, be possible to 
confine the reaction to Korea itself.^ 

That was an initial declaration of the fact that 
we relied primarily as a deterrent upon our power 
to strike in areas which were beyond the imme- 
diate area which the enemy picked for his hostili- 
ties. The processes of building up a strategic re- 
serve of land forces and relying at the front line 
primarily on sea and air power is a policy which 
we adopted over a year ago, and what is going on 
now is merely an application of that policy. 

To elaborate further, when I was at Manila and 
we were drawing up the Manila Pact for South- 
east Asia, we had a discussion there as to whether 
or not under that pact an effort would be made to 
create in the danger areas of the treaty area 
enough forces to resist open armed attack. We 
pointed out that neither the United States nor, 
we thought, the other members of the treaty could 
do that without gravely weakening themselves at 
other points and that it would be necessary to rely 
primarily upon the deterrent of mobile power — 
sea and air power — to prevent an open, armed at- 
tack and that the task in these areas covered by 
the treaty would be primarily the task of creating 
local forces as against subversion — internal secu- 
rity forces. The present thinking in relation tf 
the French and Vietnamese forces in Southerr 
Viet-Nam is within the pattern wliich I have de- 
scribed, namely, to try to have there sufficieni 
forces to maintain internal order and to prevent 

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

Department of State Bullelir. 

revolutionary activities, but not to rely upon those 
forces primarily in the event there should be open 
general war- 

Ashed whether our policy with respect to Viet- 
Nam is to huild up forces primarily for internal 
security purposes^ and whether that means that 
we abandon the old idea under the Navarre Plan 
to huild up native forces sufficiently strong to de- 
fend themselves, Secretary Dulles replied: 

Of course the Navarre Plan was a plan designed 
to cope with a war which was actually in being. 
At the present time the assumption is that the 
Manila Pact will deter the Viet Minh or the Chi- 
nese Communists from open armed aggression 
against the area and that, therefore, the principal 
task is to have a security force adequate to main- 
tain internal order and to prevent a subversion 
which might by internal means take the govern- 
ment over. That task itself would be a hard 
enough task. I do not think that the people are 
able to bear the additional task of trying to create 
an army able to fight an invasion if it occurs. If 
that occurs, then there will be, presumably, a reac- 
tion under the Manila treaty. 

Ashed for an estimate of our power or the power 
of our allies to stop subversion, Secretary Dulles 

The capacity to resist that subversive activity 
must in each case be primarily dependent upon the 
local government. That is nothing which can be 
totally supplied from without. Generally speak- 
ing, the experience has been that governments of 
countries, even though relatively weak in a mili- 
tary way, were immune from overtlirow by Com- 
munist-inspired revolution so long as they were 
responsive to the will of the people and had popu- 
lar support and so long as they had a security 
force that was loyal to them and efficient. 

Under those conditions there has not been an 
effort to take such countries over. Possibly an 
exception should be made in the case of countries 
which were directly under the menace of Soviet 
armies and where there was a fear of invasion or 
where there was, in fact, occupation — which oc- 
curred in some of the eastern European countries 
after the last world war. But there seems to be 
some evidence to suggest at least that the Soviet 
Communists do not indulge in an open brutal act 
of attempting to overthrow a country by a Com- 
munist-inspired revolution from within if it would 

January 3, 7955 

clearly show their hand and expose the perfidy of 
their propaganda throughout the world that they 
are a benevolent force, a peace-loving country, one 
that wants to help. Therefore, it seems that their 
activities are somewhat limited by their own 
worldwide propaganda where there are countries, 
even though they may be small and weak, which 
have a real will to resist, which have a govern- 
ment that has popular support, and which have a 
reasonably efficient security force of their own. 
There is a large measure of insurance under those 

Ashed whether the reduction in military man- 
power would adversely affect our deterrent to ag- 
gression, whether it would detract from our abil- 
ity to negotiate from strength or to carry out ow 
relations with other countries, Secretary Dulles 

No. It will not affect it at all. We shall have 
more strength increasingly every year. When 
there is a tremendous development — evolutionary 
development in terms of weapons — it isn't logical 
at all to assume that your strength depends upon 
keeping in being precisely what used to be under 
other conditions a principal means of force. Let 
us suppose, for example, at the time when gun- 
powder was invented a certain nation had a lot of 
people armed with crossbows. Would you think 
it involved a diminishing of their strength if they 
began to reduce somewhat the number of people 
armed with crossbows? I am not suggesting 
there is an exact parallel there, but I am suggest- 
ing that, as there is an evolution in tactics or 
strategy due to the creation of new weapons, there 
need to be adjustments. Now, there is need for 
and probably always will be need for a certain 
number of land forces. I am not suggesting land 
forces have become obsolete by any means. But 
I do suggest there has to be an adaptability and 
flexibility. If any change is looked upon as weak- 
ness, that is a completely false Judgment of the 
situation. We believe that the United States, as 
a result of these changes which are occurring — 
the shift in emphasis and the dependence upon 
new types of defensive and offensive mechanisms — 
is becoming steadily stronger. 

The present policies will gradually involve the 
use of atomic weapons as conventional weapons 
for tactical purposes. If that occurs and there is 
a replacement of what is now known as conven- 


tioiial weapons by a dilFerent type of weapon, they 
will, of course, be used. 

There is, of course, a great difference between 
the tactical use of weajwus and the strategic use of 
weapons. That distinction is not peculiar to 
atomic weapons. Tiie same distinction existed 
during the last war when there came the question 
as to whether or not to carry out the bombing of 
German cities. The question of whetiier or not 
to weapons of any kind for massive retalia- 
tion and desti-uction is a question which poses 
itself in any war. 

As I say, it is not distinctive t« the use of atomic 
weapons, which are merely weapons which have 
greater destructive capacities than the former 
weapons. Hut, in turn, fonner weapons had far 
greater destructive capacity than the weapons that 
were known before then. There lias been a pro- 
gressive increase throughout history of the de- 
structive capacity of weapons. That always 
brings with it these problems as to whether you use 
them for tactical purposes or for so-called strategic 
purposes. That issue is one which has to be re- 
solved in light of the facts of each case. 

Asked if it were possible to redv^e the overall 
strength of U.S. military forces urithovt reducing 
either the forces carrying out the worldicide com- 
mitments or the centrally placed strategic reserve, 
.Mr. Dtdles replied: 

Well, the cuts to which you refer are primarily 
a reduction in the strength of the land forces in 
being at the moment. It doesn't apply to reserve 
forces or the like. Now it is deemed entirely con- 
sistent with the United States connnitments and 
United States policies to make those reductions. 
If it were not the case, they would not be made, I 
can assure you. 

In the first place, there is no present intention 
of taking any U.S. troops out of Europe. That is 
one situation where we are not relying exclusively 
by any means upon the deterrent of striking power 
but also on defense in being. The reason for that 
is that Western Europe is a prize of such unique 
value that an aggressor might try to grsib AVestern 
Europe even at the risk of very material losses 
to himself. There is no comparable situation else- 
wliere in the world. Therefore, it seems in the 
main that the deterrent of mobile power would be 

Anked whether he would conmder it to he a 
dnngcroun threat if, as a consequence of the Ameri- 


can cuts in manpower, the Westerii European 
powers started cutting their manpower too, the 
Secretary replied: 

If you are going to do what I suggested, namely, 
maintain in AVestern Europe, which is an especi- 
ally valuable asset to a potential aggressor — if you 
are going to try to maintain there forces in being, 
which is the present strategy, then it would be un- 
fortunate if there were to be a cut in the forces 
of the Western European countries. 

As I said, the United States is not planning any 
reduction, at the present time, at least, of its forces 
in Europe. But the policy in relation to Western 
Europe — the military policy — is, for the reasons I 
indicated, different from the policy applicable to 
the other areas of the world, which perhaps do not 
require the same supplement in the way of defense 
in being that is required of "Western Europe. 

Asked whether the m,ilitary manpower reduc- 
tions are the result of reappraisal of Russian in- 
tentions or any feeling war is farther away or are 
simply the result of technological improvements. 
Secretary Dulles replied: 

The reductions are not due to the fact that wt 
consider the threat has diminished but merely dut 
to the fact that we think that we have other ways 
to cope with that threat. 

Release of Balloon Leaflets 
Over Hungary 


Press release 723 dated December 20 

The American Legation at Budapest on Decern 
her 17 delivered the following note to the Hun 
garian Ministry for Foreign Affairs in reply tt 
the Hungarian protest of Octoher 15, 1951^, con 
cerning the release of halloon leaflets over Hum, 
gary hy the Cnisade for Freedom and Radio Frei 

The Legation of the United States of Americ; 
presents its compliments to the Slinistry for For 
eign Affaire of the Hungarian People's Republii 
and has the honor to refer to the Ministry's noti 
of October 15, 1954:, concerning leaflets carried b^ 
balloons into Hungary. 

Oepartmeni of Sfafe Bullet'n 

The Legation is instructed b}' the United States 
Government to state that the activity in question 
was undertaken by the Crusade for Freedom and 
Radio Free Europe on their own initiative and re- 
si^onsibility. These are private organizations 
establislied and supported by private American 
citizens. It is only natural that they should take 
an interest in the welfare of the Hungarian peo- 
ple and seek some means of communication with 
them. If unusual methods have been adopted, 
this is due solely to the actions of the Hungarian 
Government and to those in and outside of Hun- 
gary who may be responsible for the policy of 
erecting barriere against normal intercourse 
among peoples. This policy has been pursued to 
such a degree that even the airwaves in Hungary- 
are artificially jammed to prevent as far as possi- 
ble communication by radio. 

Since this matter was called to its attention, the 
Government of the United States has obtained 
copies of the balloon leaflets and carefully exam- 
ined their content. These leaflets suggest only 
that the people of Hungary employ legal means 
to achieve realization of rights theoretically as- 
sured them by their Constitution and, in many in- 
stances, explicitly guaranteed under the Treaty of 
Peace. The Government of the United States is 
at a loss, therefore, to understand the basis of the 
Hungarian Government's concern and more spe- 
cifically on what grounds it apparently finds re- 
pugnant the points made in the leaflets that the 
Hungarian Government could improve the condi- 
tion of the Hungarian people by : 

a. In practice, vesting real authority in popu- 
larly chosen Local Councils, constitutionally re- 
sponsible and accountable to the local population ; 

b. Enforcing in practice the constitutional 
guarantees of free speech and assembly ; 

c. Assuring in practice the constitutional guar- 
antee of equality before the law ; 

d. Guaranteeing in practice the right of the 
working peasant to a just share of the fruits of 
his labor; 

e. Respecting in practice responsibility of the 
working people freely to organize for the protec- 
tion of their interests against all exploitation; 

f. Observance in practice of the constitutional 
right of the workers to proper rest and recreation, 
as well as other benefits necessary for a decent 
livelihood ; 

g. Affii-mation in practice that, to protect the 
wealth of the Hungarian community, the economic 
welfare of the Hungarian people must transcend 
the demands resulting from foreign economic 
levies ; 

January 3, 1955 

h. Recognition in practice that the forced na- 
tionalization of consiuner goods outlets and serv- 
ices has deprived the Hmigarian people not only 
of an important element of their guaranteed per- 
sonal liberty, but also of their legitimate material 

i. Realizing in practice the requirement for ade- 
quate housing to assist in jjrotecting the in.stitu- 
tions of marriage and family ; 

j. Establishing in practice the principle of free 
education and scholarly inquiry, and the constitu- 
tional right of freedom of worship and conscience. 

The United States Government does not believe 
that any of the above suggestions can be consid- 
ered either "inciting," "slanderous," or "sedi- 
tious." Certain of the highest officials of the Hun- 
garian Government apparently share this belief as 
in recent months they publicly criticized present 
conditions in Hungary including references to 
flagrant abuses of police power and judicial proc- 
esses as well as deep-seated economic ills and po- 
litical tensions. The leaflets in question merely 
make suggestions concerning practical means 
whereby some admitted shortcomings may be 

The United States Government desires to take 
this occasion to reiterate its belief in international 
freedom of communication and to express its con- 
viction that steps in achieving peaceful relations 
between peoples will be fi-ustrat«d so long as gov- 
ernments attempt to isolate and silence their own 
people. In this connection it is noted that Hun- 
garian Government representatives attended the 
recent Montevideo Conference of the United 
Nations Educational, Scientific and Cultural 
Organization and that the Hungarian delegation 
joined all other delegations in adopting by accla- 
mation the resolution entitled "Measures to Pro- 
mote the Use of Means of Mass Communication to 
Increase Mutual Confidence and Understanding 
Among the Peoples of the "World." This resolu- 
tion among other things invites all members of 
UNESCO to take the necessary measures to assure 
freedom of expression and to remove barriers to 
the fi'ee flow of undistoi-ted information between 
member states. 

The United States Government hopes that the 
day will come when balloons will no longer be 
necessary as a means by which the people of one 
country may freely communicate with peoples in 
other lauds. Presumably it is within the power 
of the Hungarian Government to take the neces- 
sary remedial action. Should the Hungarian Gov- 


emment, in conformity with the obligations it as- 
sumed toward the United States and other signa- 
tories of Article Two of the Treaty of Peace, estab- 
lish freedom of discussion, opinion, and assembly 
within the country and, in accordance with the 
spirit of that Article and the above-cited Ukesco 
resolution, remove existing barriers to free inter- 
change with the outside world, the need for friends 
of the Hungarian people to resort to unconven- 
tional means of communications will no longer 

Nelson A. Rockefeller Appointed 
Special Assistant to the President 

J'/ie White House on December 16 made public 
the following letter from the President to NeUon 
A. Rockefeller and on the same date announced 
Mr. Rockefeller's resignation as Under Secretary 
of the Department of Health, Education and 

De.\r Mr. Rockefeller : An outstanding char- 
acteristic of our nation, I believe, is a constant en- 
deavor to insure each citizen the fullest possible 
opportunity to develop himself spiritually, socially 
and economically. Faith in the individual, in his 
dignity and in his capacity for achievement is a 
basic principle of our system. The history of 
America is the story of men and women who came 
to these shores from all parts of the world and who 
have made full use of their opportunities, not only 
for themselves but in order that others might bene- 
fit Of such is our strength. 

It is my conviction that all the peoples of the 
world share the same human cravings for freedom 
and for opportunities to win economic and social 
advancement. In keeping with our heritage we 
seek to join with all peoples in a common effort to 
achieve and sustain the basic essentials of human 

It is time for all of us to renew our faith in our- 
selves and in our fellow men. The whole world 
has been far too preoccupied with fears. It is 
time for people throughout the world to think 
again of hopes, of the progress that is within 

So that these matters may have the increased 
degree of attention they deserve, not only in the 
Departments and agencies but especially within 
my immediate staff, I hereby appoint you as 


Special Assistant to the President. I shall look to 
you for advice and assistance in the development 
of increased understanding and cooperation among 
all peoples. I shall also look to you for assistance 
in reviewing and developing methods and pro- 
grams by which the various Departments and 
agencies of the government may effectively con- 
tribute to such cooperation and understanding. 
You are requested to attend the meetings of the 
Cabinet, the National Security Council, the Coun- 
cil on Foreign Economic Policy, and the Opera- 
tions Coordinating Board. 

DwiGHT D. Eisenhower 

Third Colombo Plan Report Released 

Press release 722 dated December 17 

The Department of State on December 17 an- 
nounced the release of the Third Annual Eeport 
of the Consultative Committee on Economic De- 
velopment in South and Southeast A^sia.^ This 
report, which has been released by various mem- 
bers of the Colombo Plan, was prepared at the 
sixth meeting of the Consultative Committee held 
in October at Ottawa, Canada. It covers the 
1953-1954 period. 

The United States has been a member of the 
Consultative Committee since 1951. The Com- 
mittee developed from the Commonwealth Com- 
mittee, which in 1950 issued the original Colombo 
Plan report containing the individual 6-year de- 
velopment plans of several member countries in 
the area. Although commonly referred to as the 
Colombo Plan, the program is simply an inter- 
governmental committee. All assistance from the 
contributing countries, such as Canada, Australia, 
New Zealand, the United Kingdom, and the 
United States, is bilaterally given and bilaterally 
received. The U.S. contribution is the sum total 
of the assistance it extends to the various countries 
of the area to promote the economic development 
of those countries. The Consultative Committee 
constitutes the annual fonmi for members of the 
Colombo Plan. 

The principal objective of the Consultative 
Committee is to exchange views on problems con- 
cerning the raising of living standards by accel- 
erating the pace and widening the scope of eco- 

' Copies of the report may be obtained from the Queen's 
Printer, Ottawa, Can., for 50 cents plus postage. 

Deparfment of Slate Bullefin 

nomic development in countries of South and 
Soutlieast Asia by a cooperative approach to their 

Member governments of the Consultative Com- 
mittee participating in the preparation of the 
report included Australia. Burma, Cambodia, 
Canada, Ceylon, India, Indonesia, Laos, Nepal, 
New Zealand, Pakistan, the United Kingdom and 
Malaya and British Borneo, the United States, 
and Viet-Nam. At the Ottawa meeting the Phil- 
ipjjines and Thailand, heretofore observers at ses- 
sions of the Committee, and Japan became mem- 
bers of the Consultative Committee. 

The State Department in releasing the report 
emphasized that the discussion therein of the na- 
tional development programs and projects is the 
responsibility of the governments concerned and 
does not imply financial or other aid for such pro- 
grams beyond that which is being given currently 
under existing bilateral assistance progi'ams. 

The report indicates that the third year of the 
implementation of the individual national pro- 
grams initially presented as the Colombo Plan 
saw a 27 percent increase from the previous year 
in total development expenditures throughout the 
area of South and Southeast Asia. It is expected, 
according to the report, that such expenditures in 
the current, or fourth, year of the Colombo Plan, 
will increase by 31 jjercent. 

Almost all countries in the area maintained and 
increased their programs for development, there- 
by accelerating the momentum generated in the 
earlier years of the program, although the report 
notes that basic development, especially in some 
countries, has been slower than is desirable to 
achieve the objects of the Plan. 

Agriculture, including irrigation and multipur- 
pose projects, and basic services, especially trans- 
port and power, continued to occupy a leading 
place in most national development programs. 

Last year's increased food production, in part 
I result of generally favorable weather conditions, 
s also a reflection of the strenuous efforts under- 
aken in the development programs to increase 
,he yield and extend the area of food production. 
The heavy investment in agriculture undertaken 
n recent years in countries of tlie area should 
nsure an increasing volume of food production 
md a higher measure of economic stability for the 
vhole Colombo Plan region. 

The report indicates that power development 
nade steady progress throughout the area during 

'anuar/ 3, 7955 


the past year and that railroads are being rehabil- 
itated and improved and rolling stock expanded. 
Road building continues to be an urgent problem, 
with which governments of the region are coping 
with varying degrees of success. 

In the field of social services, the report notes 
that development has been active and that sub- 
stantial investments have been made in new 
houses, educational and medical facilities, and re- 
settlement projects. Enlarged social service pro- 
grams are expected in the near future to become 
a significant factor in raising the economic pro- 
ductivity of the region. 

The governments in the region who are mem- 
bers of the Colombo Plan expended approximately 
$1,540 million toward their respective economic 
development programs. Assistance by countries 
such as Australia, Canada, New Zealand, the 
LTnited Kingdom, and the United States made a 
significant contribution during the year to the 
progress of the Colombo Plan, totaling $280 mil- 
lion in grant assistance and approximately $62 
million in loans authorized or disbursed from 
international and governmental loan agencies. 
LTnited States grant assistance, which is made 
available bilaterally, totaled, in the year ending 
June 30, 1954, $163 million. These U. S. pro- 
grams are being continued in fiscal year 1955 pur- 
suant to recent congi'essional authorizations and 

The report concludes that the decision in 1950 
to embark on far-reaching and comprehensive 
programs of economic development was one of 
immense importance for the future of the area 
and the world. Much progress has been made 
since that time. The future still holds many 
problems. The report says that the financial 
problems of the Colombo Plan countries, relative 
to their development needs, are most serious and 
that, on balance, the gap between estimated costs 
of firm development progi'ams and foreseeable 
available financial resources is widening rather 
than narrowing. The report states: "They [the 
countries] are aware that the main burden must 
be borne on their own resources, though external 
aid can do much to smooth and accelerate the 
progress toward a higher standard of living. But 
thej- have come through the initial difficulties, and 
not as isolated entities but as membei-s of a great 
and growing partnership animated by a common 
purpose and increasingly conscious of each other's 
problems and aspirations." 



Calendar of Meetings^ 

Adjourned During December 1954 

IcAO Air Xaviijation Commission: 17th Session Montreal Sept. 21-Dec. 10 

U. X. General Assemljly: 9th lU-Kular Session New York Sept. 21-Dec. 18 

IcAO Air Transport Committee: 23d Session Montreal Sept. 27-Dee. 8 

IcAO Council: 23 I Session Montreal Sept. 2S-Dec. 15 

U. N. Ecosoc: Hesuined 18th Session New York Xov. 5-Dec. 16 

UNESCO General Conference: 8th Session Montevideo X^ov. 12-Dee. 10 

IcAO Airworthiness Panel Meeting Montreal X'ov. 15-Dec. 17 

Ia-Ecosoc: 4th Extraordinary ^ieeting (Ministers of Finance or Quitandinha (Brazil) .... X'ov. 22-Dec. 2 


I Lo 8th International Conference of Labor Statisticians Geneva Nov. 23-Dec. 3 

Caribbean Commission: 19th Meeting Port-of-Spaln (Trinidad) . . X'ov. 29-Dec. 4 

IcEM Council: 1st Meeting Geneva X'ov. 30-Dec. 4 

IcEM Executive Committee: 1st Meeting Geneva Dec. 4 (1 day) 

U. X. High Commissioner's Advisory Committee on Refugees: 5th Geneva Dec. 6- Dec. 10 


Fad 4th World Forestry Congress Dehra Dun (India) .... Dec. 11-Dec. 22 

Fao Phytosanitary Conference for Southeast Asia and Pacific Singapore Dec. 13-Dec. 17 


Unicef Executive Board and Program Committee Xew York Dec. 13-Dec. 15 

X'ato: Ministerial Meeting of the Council Paris Dec. 17-Dec. 19 

In Session as of December 31, 1954 

Gatt Contracting Parties: 9th Session Geneva Oct. 28- 

Intcrnational I>xposition and Trade Fair Sao Paulo Xov. 15- 

Sixth Mexiran Book Fair Mexico City X'ov. 20- 

U. X. Tru.steoship Council: Standing Committee on Petitions. . . Xew York " Dec. 10- 

Inter-.\merican Seiiiiiiar on Secondary Education Santiago Dec. 29- 

Scheduled January 1-IMarch 31, 1955 

U. X. Ecosoc Subcommission on Prevention of Discrimination and Xew York. Jan. 4- 

Protection of Minorities. 

U. X. EcAFE Subcommittee on Trade: 1st Session Hong Kong Jan. 6- 

10th Pan American Child Congress Panama Citv Jan. 10- 

Who Standing Committee on Administration and Finance . . . . Geneva. Jan. 10- 

U. X. Advisory Committee Concerning the International Confer- New York Jan. 17- 

ence on Peaceful Uses of Atomic Energy. 

U.X. Ecosoc Commission on International Commodity Trade: Ist New York Jan 17- 


Who Executive Board: 15th Meeting Geneva Jan. 18- 

Ii.o European Regional Conference Geneva . . . . Jan! 24- 

L. X. EcAFE Inland Transport Committee: 4th Session Bangkok Jan. 24- 

Consultative Committee on Rice: 9th Meeting Singapore Jan. 27- 

Wmo Regional A.ssociation for Asia: 1st Session. Xew Delhi January 

L. X. Trusteeship Council: 15th Session Xew York January- 

ILO Chemical Industries Committee: 4th Session Geneva Feb. 7- 

U. X. p:ro.Hoc Transport and Communications Commission: 7th Xew York Feb. 7- 

_ session. 

y,- ^- .^V"*i'!*I'''''^ Conference for Asia and the Far East .... Dehra Dun (India) .... Feb. 15- 
Gatt Tariff Xegotiations with Japan Geneva Feb. 21- 
Ir.o Governing Body: 128th Session Geneva Feb 21- 

Pan American Highway Congress: Permanent Executive Com- Mexico City' .' .' .' ." .' Feb.' 21- 

iV^"i'*i*''*'i''"''"'*^"r.^'"'''>*'"'^''=«''"8 Bangkok Feb. 23 

I LP Ania n Advisory Committee: 6th Session Geneva Mar. 7- 

Astori-sks indicate tentative dates. FoUowin: 

nited Xations; Unesco, United X."itioii- 

Economic and Social Council; Ilo, Inter 

Migration; Fao, Food and Agriculture 

Treaty Organization; Gatt, Genera 

conomic Commission for Asia and thf 

tcorological Organization; Icsu, International Council oi 


Department of Slate Bulletin 

Calendar of Meetings — Continued 

Scheduled January l-March 31, 1955 — Continued 

International Council of Scientific Unions (Icsu) : Quarterly Meet- 
ing of the Bureau. 

UxicEF Executive Board and Program Committee 

U. X. Ecosoc Commisoion on Status of Women: 9th Session. . . 

U. X. Ecosoc Population Commission: 8th Session 

U. X. Economic Commission for Europe: 10th Session 

U. X. Ec.\FE Committee on Industry and Trade: 7th Sessioa . . 

Inter-American Conference on Social Security: oth Session. . . . 

U. X'. Economic Commission for Asia and the Far 11th 

U. X". Economic and Social Council: 19th Session 

U. X. Ecosoc Commission on Human Rights: 11th Session . . . Legal Committee: X'egotiability Subcommittee 

F.iO Latin American Forestr.v Commission: 5th Session 

Washington Mar. 7- 

X'ew York Mar. 7- 

Xew York Mar. 14- 

Xew York. Mar. 14- 

Geneva Mar. 15- 

Tokyo Mar. 15- 

Caracas Mar. 16- 

Tokyo Mar. 28- 

X'ew York Mar. 29- 

Geneva Mar. 31- 

Europe March * 

Venezuela March * 

Promoting the Internationa! Flow of Private Capital 

Statements iy Roger W. Straus 

U.S. Representative to the General Assembly ^ 


D.S. delegation press release 2047 dated November 30 

In my first statement to this committee,^ I em- 
phasized our opinion that the fullest possible ex- 
ercise of individual initiative is the basis of sound 
economic development. We are convinced that 
this is so as a result of our own experience. In 
less than a century, we developed from an agricul- 
tural society to a highly industrialized nation. 
The United States has fortunately been blessed 
with an abundance of natural resources. But the 
economic and social benefits which the American 
people have drawn from them are, in large pai't, 
the fruits of individual enterprise, coupled with 
private investment from "Western Europe. The 
economic history of the United States, together 
with that of Canada and other countries, certainly 
refutes the thesis that the inevitable result of for- 
eign investment is to keep the recipient country 
in a perpetual state of underdevelopment. 

One of our objectives in the United Nations is 
to enable countries in the process of development 

'Made in Committee II (Economic and Financial) on 
Nov. 30 and Dec. 3. 
' BuixETiN of Oct. 25, 1954, p. 62(i. 

to speed up their rate of progress. That is why 
the General Assembly is giving attention to the 
problem of encouraging the international flow of 
private investment. 

I am sure that most of us recognize that the 
problem of stimulating foreign private invest- 
ment is not an easy or simple one. It cannot be 
solved onh' by financial mechanisms. It has deep 
psychological aspects. Government capital can be 
directed; private capital caimot. Private capital 
cannot be driven ; it must be induced. 

Consequently, the first task is to awaken inter- 
est, dispel ignorance, and inspire confidence on 
the part of the potential investor. The world's 
capital markets are highly competitive, and, as 
every businessman knows, even a good product 
cannot survive in a highly competitive market 
unless it is actively pushed. 

In many places, private investment is already 
making a substantial attack on the problem of eco- 
nomic development. At the end of 1953, Ameri- 
can private investment in foreign countries totaled 
about $24 billion. Of this total, something ap- 
proaching $10 billion was invested in imderdevel- 
oped areas. I might add that the return on our 
total investment abroad has been averaging about 
6 percent per annum. 

Januory 3, 1955 


DurinR the post 6 years, our private investors 
have Ixfn st-ndiiiR abroad about §900 million a 
year in now dollar funds, after taking into account 
repatriation of capital. In addition, about $6(J0 
million a year of earninps were reinvested directly 
in the countri»-s in which they were earned. This 
means that total new investment provided by pri- 
vate rnite<l States sources has, during this period, 
reached at least 1 to U/o Ij'll'on iM\aTS a year. 
Of this amount, 60 percent has gone into under- 
develo|HHl areas. 

During the first half of 10r>4, our private in- 
vestors place<l almost $645 million in new capital 
abroad, that is, without continuing reinvestment 
of earnings. At an annual rate, this amounts to 
almost 1 billion 300 million dollars of new invest- 
ments. This is higher than in any year since 
World War II. 

In this connection, I find that there is occasion- 
ally a tendency to reganl reinvestment of earnings 
from e.xisting foreign investment as not really 
contributing to the economic development of the 
country concerned in any effective fashion. It 
seems to me that this is a mistake. Reinvestment 
of prf)fits and earnings not only reduces demand 
for foreign exchange but also contributes directly 
to the expansion of economic activity and the in- 
crease in the national income of the country in 
whicli it takes place. Furthermore, it directly in- 
creases the interest of the investor in the local 
economy and his concern with its economic prog- 
ress. If done entirely voluntarily, it is a signal 
toother i>otential investoi-s that the capital ali-eady 
investe<l has confidence in the fair treatment ac- 
corde<l by the hfjst country, as well as in the oppor- 
tunities for further expansion. 

Sometimes the desirability of ])rivate invest- 
ment in economic development is debated solely 
in terms of the amount of new foreign exchange 
which it brings to the underdeveloped country, as 
compared with the amount of foreign exchange 
wliich it takes out in the form of earnings. Clearly 
this is but one a.^pect of a broad and complicated 
picture. The benefits of private inve.stment can- 
not be meosurwl simply by looking at its effect on 
a count rj'.H foreign exchange accounts. To do so 
is to look ot only one part of the problem. To 
appreciate its true contribution we must analyze 
it.H whole impact on the domestic economy in terms 
of such things ns the training of local labor, the 
development of relnte<l ioc-al industries, the growth 


of new or existing cities and towns, the production 
of commodities wliich otherwise would have been 
imported— in short, all the things that go to make 
up national prosperity and economic strength. 

Case Histories 

To me, .statistics about the international flow of 
capital are always far less impressive than spe- 
cific case histories of what is actually being done. 
Examples of the many ways in which American 
companies are helping to introduce new techniques, 
develop new crops, train local labor, and encour- 
age the establishment of new local business enter- 
prises could be given by the hundreds. I should 
like to mention one or two which I have personally 
observed in my own work. 

Approximately 25 years ago, in the heart of the 
Queensland desert of Australia, a promising de- 
posit of silver lead zinc ore was found. British 
and Australian capital began to mine the ore. A 
few years later, it was evident that additional 
investment would be required fully to develop the 
possibilities of the area. Ajnerican investors 
agreed to join the enterprise. Millions of addi- 
tional dollars were put into the property. Further 
development uncovered a copper deposit. 

A town of 11,000 people was built up. Health, 
educational, and recreational facilities were pro- 
vided. Houses were built, at first by the company, 
more recently by individuals through a building 
and loan association. 

When I visited the area last May, after a period 
of 7 A'ears, I found a lovely town, with trees and 
flowers growing in the irrigated earth. There 
were shops, moving picture theaters, a large swim- 
ming pool, bowling greens, and a football and 
cricket field. A large slaughter house was pro- 
viding meat supplies from neighboring ranches; 
vegetables and fruits were being brought from 
the coast in refrigerator cars. 

The development was providing emploj'ment 
not only in its immediate vicinity but hundreds 
of miles away. Among its major requirements 
was a constant supply of coal, coke, and cement. 
In fact, its need for cement led to the construction 
of a new plant which was supplying many other 
customers who previously had depended on ce- 
ment transported by ship and railroad at almost 
prohibitive costs. This mine, together with 
others developed in the same vicinity, will con- 
tinue for at least another half century to provide 

Department of State Bulletin 

employment and good living conditions for many 

Similarly, in Peru a small operation in the 
heart of the Andes was started 4 years ago to 
produce lead and zinc. A model town was the 
first part of the enterprise actually constructed. 
Because Peru has given evidence of desiring priv- 
ate investment, there is now under active con- 
sideration a new $200 million cojaper-mine de- 
velopment, including two towns, a lOG-mile rail- 
road, new port works, and many other facilities. 
The Export-Import Bank has earmarked $100 
million to cover half the capital as a loan, and 
private enterprise is to provide the balance. 

If this enterprise is undertaken — and I think it 
will be — a large section of the Peruvian economy 
will benefit. Not only will employment be given to 
thousands directly involved, but a new home mar- 
ket will be provided for agricultural products of 
aU kinds. Many small industries will undoubt- 
edly be set up to meet the needs of the operation 
and the people employed. Educational and recre- 
ational opportunities will be created. Further- 
more, earnings of foreign exchange will be in- 
creased, the national income substantially raised, 
and a large territory opened up for future in- 
dustrial expansion. In this case a contract be- 
tween the Peruvian Government and the organi- 
zation to supply the equity capital was entered 
into. It outlined the duty and rights of that or- 
ganization in considerable detail. 

In Newfoundland I have seen what is called 
"moose pasture" turn into a thriving town of 
3,500 people as part of the development of zinc 
lead copper ore lodes financed by British and 
U.S. capital. 

So it goes in all parts of the free world. Where 
private capital, both domestic and foreign, is en- 
couraged, the nation's economic and political 
health and stability are strengthened. 

We are here concerned with ways and means 
of encouraging this kind of activity, of dispelling 
the doubts of potential private investors, of di- 
^ recting their attention to opportunities abroad. 
I do not propose to discuss in detail the familiar 
types of deterrents to private investment. In 
some cases they involve general political instabil- 
ity, which has its roots deep in world conditions 
and is beyond the control of individual govern- 
ments. But in many cases they involve internal 
I policies, which may include the threat of expro- 

priation, discrimination against foreign com- 
panies, stringent controls over the operations of 
foreign investors, restrictions on the repatriation 
of earnings or of capital itself, or a general desire 
to exclude the foreign investors from the local 

If foreign investment is to be encouraged, there 
must be mutual confidence between the investor 
and the recipient country. The foreign investor 
must be really wanted and welcome, not only by 
the local government but by the people as well. 
They must be willing to permit the investor to 
earn a reasonable return for the risk involved. 
The private investor must be convinced that, if 
he is successful, he will not be deprived of the 
fruits of his enterprise. One case of discrimina- 
tion or inequitable treatment can discourage many 
other potential investors. 

The job of building up the confidence of the 
private investor is not one which can be done pri- 
marily by the governments of capital exporting 
countries. While we stand ready to assist them in 
every appropriate way, it must be done mainly by 
those countries which need and desire foreign 

I am fully aware that there have been examples 
where foreign capital has been responsible for 
causing resentment, but I believe that this is now 
extremely rare. Certainly any host country has 
not only the right but the duty to demand com- 
pliance with its best interests. The relationship 
of foreign capital and the country in which it 
operates must be that of guest and host. 

Rights of Recipient Countries 

The recipient country has a right to expect com- 
pliance with its laws and respect for local customs 
and tradition. It has a right to expect a real 
effort by the investor to employ its citizens and to 
provide them with opportunities to acquire tech- 
nical competence in tlie industry concerned. I 
believe that the vast majority of American busi- 
nessmen understand that foreign investment can 
be successful only when the recipient country pros- 
pers. I am sure that there are few investors left 
with the erroneous idea that they can get in and 
get out quickly with large profits and without 
contributing to the well-being of the host country. 

The United States Government in recent years 
has taken various steps to encourage investment 
abroad by American citizens. Through our De- 

January 3, 1955 


partincnt of C'oiimieive ami our Foreign Opera- 
tions Administration, we give wide circulation to 
information on foreign investment opportunities. 
We offer our investors guaranties against certain 
nonbusiness risks affecting investment in any 
country which conchides the necessary bihiteral 
agreement with the United States. For many 
years, tlie United States has pursued a program 
of negotiating treaties designed, among otlier 
things, to assure conditions favorable to the in- 
vestment of private foreign capital. We stand 
ready to explore with any country the possibility 
of concluding such a treaty, as well as bilateral tax 
treaties specifically designed to create a more fa- 
vorable climate for international investment. 
Finally, as announced a few days ago, the admin- 
istration intends again to submit to Congi'ess pro- 
posals for reducing taxation on income fi'om 
foreign investment. 

I, for one, am quite optimistic that private in- 
vestment will be available in expanding amounts 
in the near future. I do not mean to imply, of 
course, that, if the major impediments to the flow 
of capital were removed, private investment would 
instantly flow in tremendously increa.sed volume. 
Any realistic proposal of future prospects must 
recognize the initial advantage of the domestic 
market in the competition for available capital. 
The American corporate or individual investor 
has many opportunities to invest his capital in his 
own country. Here he enjoys a familiar environ- 
ment in which he has confidence and which does 
not involve risks inherent in any investment made 
abroad. Even when he does decide to invest 
abroad, the American investor is likely to be in- 
terested initially in the countries most familiar 
to him, wliich may well be those which are closest 

Nevertheless, from my own observations and 
from discussions with other businessmen, bankers, 
and economists both here and abroad, I am con- 
vinced that during the next 10 years there will be 
increasing amounts of private capital— from many 
industrialized countries, including of course the 
United States— prepared to invest in underdevel- 
oped countries that give evidence of really 
desiring it. 

Mr. Cha irman, the draft resolution » which has 

• K.'.s..luiion r,l2 B (XVII). The draft as amended was 
».l.iptpd hy Coimnlttee II on Dec. 1, 45-1-7, and by the 
'**nnry on Dec. 11. 48-0-8. 

been presented by the Economic and Social Coun- h 
cil for our consideration is the result of much 
deliberation by the Council. It takes into account 
tlie points of view of many countries on the prob- 
lem of international private investment. The res- 
olution is by no means definitive. As drafted, it 
is but a first sketch of some of the waj^s in which 
capital-exi)orting and capital-importing countries 
can work to encourage an expanding flow of pri- 
vate capital. But it does point the waj' in the 
right direction. 

At the 17th session of the Economic and Social 
Council, the United States delegation vigorously 
supported this draft resolution. We shall, of 
course, vote for it in this Assembly. Its adoption 
by a large majority will be a most valuable step in 
the direction of creating that better atmosi^here 
and mutual confidence which is the very basis of 
foreign investment. 


U.S. (lelepation press release 2056 dated December ? 

I am sure that you are all aware that on Novem- 
ber 11, 19.54, the executive branch of my Govern- 
ment announced that it was prepared to support 
the establishment of an International Finance 
Corporation.^ Our participation in the new cor- 
poration is, of course, dependent upon congres- 
sional approval, which the administration is pre- 
pared to seek at the appropriate time. The pro- 
posal for an International Finance Corporation, 
examined in various reports of the International 
Bank, is one of the results of our search in the 
United Nations for ways to encourage private 
capital to play an increasing role in economic de- 
velopment round the world. 

The establishment of such a corporation has 
been under discussion for nearly 4 years. During 
this time my Government has given it a great 
deal of thought. Although we did question the 
necessity and desirability of establishing a new 
international financial institution of this kind, wo 
have always been sympathetic to tlie desire of 
many governments for a greater inflow of invest- 
ment capital to meet their development needs. 
For that reason, my Govei'nment has suj^ported 
the several resolutions of the Economic and Social 
Council and the General Assembly which called 

' BuiXEiiN of Nov. 29, 1954, p. 813. 

Department of State Bu/fefinI** 

for further study and consideration of the pro- 
posal for an International Finance Corporation. 
Now we are prepared to join with other like- 
minded countries in establishing such a corpora- 
tion, as an experiment in specific intergovernmen- 
tal action to encourage and assist private initia- 
tive and enterprise in the interest of economic de- 

We consider it as an experiment because its ef- 
fectiveness can only be demonstrated by its re- 
sults over a period of time and with resources 
sufficient to provide a fair test. The true measure 
of the corporation's success will be the additional 
flow of capital which it generates, directly and 
indirectly, from private soui'ces. 

As we are all aware, the problem of private in- 
vestment for economic development is not only 
one of stimulating the international flow of pri- 
vate capital. The movement of domestic private 
savings in underdeveloised countries into local 
business enterprises must also be increased. While 
the volume of savings in underdeveloped areas 
attainable in the near future may be small in com- 
parison with requirements, much can be done to 
encourage additional local investment in produc- 
tive industrial and commercial enterprises. In 
our view, this can be one of the most important 
areas of activity by an international finance cor- 

The proposed capitalization of $100 million 
should provide adequate resources for this purpose. 
Of course, if an international finance corporation 
is to be truly international in character, it must 
attract a wide degree of support and participation 
by those countries needing capital, as well as 
those countries able to export capital. 

In joining in this intergovernmental effort to 
stimulate the international investment of private 
funds, we hope there will be no misunderstanding 
of the role of an Ifc. It would not be a substitute 
for other measures, largely unilateral in nature, 
which are needed to provide the conditions where- 
by private enterprise can function and make its 
'full contribution to the developmental process. 
These measures have been discussed specifically 
in connection with the resolution just adopted by 
the committee on the international flow of private 

Rather, the International Finance Corporation 
should be regarded as a catalyst which will stim- 

ulate and assist private enterprise to respond to 
the conditions and opportimities which exist in 
the countries participating in it. It can help in the 
common effort of governments to strengthen the 
confidence of private investors, both domestic and 
foreign, in the sincerity and resolution with which 
the problems of economic development are being 
approached. In short, its success will depend to 
a very great extent on the attitudes displayed and 
the steps taken beyond the formality of signing its 
charter and contributing to its capital. It is, in 
part, in this framework that participating gov- 
ernments will no doubt wish to review the effective- 
ness of the new organization from time to time. 

There has been one aspect of the Ire proposal 
which was particularly troublesome to my Gov- 
ernment. As heretofore discussed, an Interna- 
tional Finance Corporation would offer two kinds 
of financial assistance to private enterprise : loans 
without govermnent guaranties, and equity in- 
vestments representing an interest in ownership. 
We feel that it is not appropriate for an inter- 
governmental organization to participate in the 
ownership and management of what are essentially 
private enterprises. Basically, this kind of rela- 
tionship seems inconsistent with the whole concept 
of private enterprise, and, accordingly, we pro- 
pose that the International Finance Corporation 
not be authorized to provide equity financing. 
Rather, in addition to loans, it should be empow- 
ered to invest in securities bearing an interest only 
if earned. It should also be empowered to invest 
in debentures which would be convertible into 
stock when sold by the corporation to private in- 
vestors. This would still permit considerable 
flexibility to the coi'poration with respect to the 
nature of its joint financial participation with 
private enterprise, but in ways which, we feel, 
are more consistent with its basic objectives. In 
this connection, it might be noted that, by selling 
its holdings in going enterprises, the corporation 
will greatly increase the velocity of its capital. 

The United States, in company with other dele- 
gations, intends to submit a draft resolution " sup- 
porting the establishment of an International Fi- 

' The draft resolution, U.N. doc. A/C.2/L.249 dated Dec. 
4, was sponsored jointly b.v Brazil, Canada, France, Greece, 
Mexico, Pakistan, Peru, Turkey, and tlie U.S. Committee 
II approved it on Dec. 6 by a vote of 44-0; the Soviet bloc 
abstained. The vote In the Dec. 11 plenary was 50-0-5. 

lanuary 3, 1955 


nance Corporation in principle and requesting the 
International Hank to proceed with the prepara- 
tions and consultations necessary to its establish- 
ment at an early date. The International Bank 
is well efpiipped to undertake this task in view of 
its experience with the problems of economic de- 
velopment, its extensive contact with private cap- 
ital markets, and, of course, the very great amount 

of study and consideration which it has already 
given the proposal for an international finance 
corporation since first requested to do so by the 
Economic and Social Council. Overwhelming en- 
dorsement of this resolution will make it possible 
to begin work looking toward the addition of yet 
another major financial institution dedicated to 
more abundant lives for people everywhere. 

U.N. Extends Mandate of Relief Agency 
for Palestine Refugees 

Statements by James J. Wadsworth 

U. S. Representative to the General Assembly * 


U.S. deleKatlon press release 2031 dated November 19 

I have listened with gi'eat interest to the clear 
and forthright statement of Mr. LaBouisse, the 
new Director of the United Nations Relief and 
Works Agency. My delegation has also examined 
Mr. LaBouisse's report as Director and the special 
joint report of the Director and the Advisory Com- 
mission.^ They provide a sound basis for our work 

I am sure all will agree that this present item 
is but one aspect of the Palestine question. There 
are many other aspects of this question, and surely 
no one here will minimize their reality, their diffi- 
culty, or their place in the eventual solution of the 
Palestine problem as a whole. But the particular 
part of this problem now befoi'e us is itself im- 
mense and difficult. It is nothing less than the 
practical task of supporting Arab refugees and, 
beyond that, of establishing a better and more 
secure future for them in the Near Eastern region. 
I think it is imperative that the Assembly now 
take practical measures to advance this program. 

We need not review the history of the General 

'MiKic In iho Alt Hoc roUtl.-al Committee on Nov. 19, 
24. and ::({. 
"U. N. does. A/2717 niul Add. 1. 


Assembly's effort to settle the refugee question. It 
has been slow, often frustrating, but patient and 
persistent. Over the years the long-range, essen- 
tial objective of Unrwa has come to be that of 
rehabiUfation, that is, finding means of enabling 
refugees to become effective and self-supporting 
members of society. 

I think we may, at the outset, say that the essen- 
tial issue now is simply whether or not this shall 
continue to be the function and objective of 
Unrwa. The United States believes it should be. 
We are prepared to support the continued life and 
mandate of Unrwa for another 5 years. We do so 
in order that the refugee question may be resolved 
and in order that the refugees may once again find 
a secure and productive place in the society and 
economy of the Near East. 

Efforts must now center on finding new homes 
and work, for refugees choosing these opportuni- 
ties, in the Arab countries which have declared 
their willingness to find homes for their brother 
Arab who seeks resettlement as contemplated in 
the 194S resolution of the Assembly. It is obvious 
that programs which could achieve what we desire 
for the refugees, and for the eventual economic 
benefit of the countries in the area, will undoubt- 
edly take some years to complete. 

The extension of Unrwa's life, as far as my del 
gation is concerned, is based on the fact that recli 

Department of Slate BulMIl 

Qation projects take time to execute ; but the peiiod 
)f extension, insofar as my delegation is concerned, 
s valid only if the Sinai project, the Jordan- 
^armuk project, and other projects are begun very 
ioon. If prompt action is not forthcoming, the 
ittitude of my Government must inevitably under- 
go thorough reexamination, as its willingness to 
continue its support to Unrwa will in all prob- 
ibility be based on tangible evidence of progress 
jn tlie programs of public works within a reason- 
ible time. 

Thus the extension of the Unrwa program can 
ichieve its purpose only if the host governments 
cooperate to the utmost with the Director of the 
A.gency solving the issues remaining before it in 
3inai and the Jordan Valley and in finding new 
projects. I am sure that all of the host govern- 
ments will recognize that such rehabilitation proj- 
ects are in the best interests of their own people 
as well as of thousands of the refugees. 

In this connection my Government is greatly 
Bncouraged in the belief that many responsible 
Arab leaders today do appreciate the benefits 
which they will derive from rehabilitation proj- 
ects. We are frankly hopeful that through the ef- 
forts of Ambassador Eric Johnston, President 
Eisenhower's Personal Representative in the Near 
East, an agreement may soon be reached for the 
development and full utilization of the waters of 
the Jordan Kiver Basin, which is of concern to the 
interests of Jordan, Lebanon, Syria, and Israel. 
With understanding and cooperation this project 
and others can be realized well within the proposed 
extended lifetime of Unrwa. By its very sub- 
stantial financial contributions, and by such ef- 
forts as those of Ambassador Johnston, the United 
States has pressed and will continue to work for 
the resolution of the refugee question through 

Obviously the extension of Unrwa's mandate in 
no way prejudices rights of the refugees to repatri- 
ation or compensation. The settlement of these 
rights should be a matter of continued concern 
to all members of the United Nations and should 
'be the subject of early action. We would welcome 
prompt indications from the Government of Israel 
;hat it is taking concrete steps to settle these mat- 
:ers. We appreciate that Israel has indicated its 
willingness to discuss the settlement of the com- 
)ensation question. But, despite the difficulties 
vhich we know confront the Israeli Government, 

we would now welcome more specific proposals 
from them. 

As to my delegation's position, I should call 
attention to the following United States reserva- 
tion to the special report of the Advisory Commis- 

The United States is obviously desirous of an exjjeditious 
and equitable settlement of all aspects of the refugee prob- 
lem. However, it believes that, so long as the rights of 
the refugees are fully protected, the failure to resolve the 
problems of repatriation or compensation must not be an 
obstacle to the Agency's eftorts to rehabilitate refugees 
as promptly as possible. 

I turn now to the question of how the relief and 
rehabilitation programs are to be supported finan- 
cially. We believe that the committee should 
approve the budget recommended by the Director 
and the Advisory Commission for the current 
year, and we are prepared to discuss our share 
of it at the appropriate time. We had hoped that 
more employment opportunities might have made 
it possible to reduce the relief budget. Meantime 
we depend on the Director to be constantly on the 
lookout for every possible economy. We are im- 
pressed with the necessity of reducing the relief 
rolls as rapidly as feasible. In signing the special 
joint report, the United States made the following 
as its second of two reservations : 

The United States believes that any redefinition of a 
refugee eligible for relief should be contingent on the 
establishment of an effective system for determining the 
bona fides of relief recipients and the deletion from the 
registration rolls of the persons not entitled to relief. 
The United States believes that the purpose of the 
Agency's function in the relief field would be defeated if 
these steps were not taken and every effort made not to 
exceed the present number of relief recipients. 

Mr. Chairman, it is essential that we see to it 
that the contributions are used to achieve the pur- 
poses of the program, that is, used for the per- 
sons — particularly children — entitled to it. This 
is in the obvious interest of the refugees them- 

So much for the immediate problems of the 1955 
budget. We stand ready to consider the require- 
ments of future years as and when they are pre- 
sented by Unrwa. 

Mr. Chairman, the program for the Palestine 
refugees is one of the largest of the United Na- 
tions programs. Up to now it has met a need on 
a year-to-year basis, and I think our legislatures 
and our peoples want to see progress. The con- 
tribution of some members is financial. Others 

lonoary 3, 7955 


can and must — if Unkwa is to succeed — contribute 
also their constant, sincere, and iniaj^inative co- 
operation in giving the program ell'ect in the area 
itself. In pressing forward witli this program, 
our governments count on receiving the kind of 
coopenition in tlie Near East which makes the 
program a realistic means of dealing with the 
problem. I am confident that on this basis our 
prograiu will go forward successfully. 


U.S. delcRaUon press release 2040 dated November 24 

The United States has joined with the United 
Kingdom, France, and Turkey in cosponsoring the 
draft resolution which has now been put before 
the committee.' It is our earnest hope that it will 
receive the support of this committee. Its primary 
objective is to renew the mandate of the United 
Nations Relief and Works Agency for a period 
of ."j years. 

I should like to make a brief comment with 
respect to the preambular paragi-aphs of the 
resolution. AVe believe the resolutions which are 
recalled in the preamble provide adequate terms 
of reference now, and in the future, for the Di- 
rector and the Agency. The resolution before the 
committee also takes note of the report of the 
Director and the special report of the Director 
and the Advisory Commission. These reports 
comprise important guide lines to tlie Agency in 
that they underscore the problems which now and 
in the future will confront it. A third element 
in the preiimble notes that repatriation or com- 
pensjition has not been effected and that the situa- 
tion of the refugees is still a nuitter of very gen- 
uine concern. 

In connection with the right of repatriation, 
which the resolution reaffirms clearly and which 
has received a good deal of attention in the 
speeches of a number of delegations, we wish to 
urge upon our Arab colleagues and upon the rest 
of the committee our conviction that the eventual 
resolution of the refugee problem rests not in look- 
ing back but in looking forward to a new and 
stronger economy for the Arab States, coming to 
regard many of their Arab refugee brothers not 
as temporary residents but as fellow citizens and 

' D.N. doc. A/.\C.7C/I..iri. 

cosharei-s of the Near East's future. Again we 
repeat our belief that Israel ought to satisfy one 
or the other of the two rights. We also believe 
that it is essential that the refugees understand 
that the true destiny of most of them lies in the 
Arab world. As the Secretary of State stated in 
his speech of June 1, 1953 : 

Some of these refugees could be settled in the area 
pre.sentl.v controlled by Israel. Most, however, could more 
readily be integrated into the lives of the neishboring 
Arab countries. This, however, awaits on irrigation 
projects, which will permit more soil to be cultivated. 

In the best interest of the host countries and the 
refugees, the General Assembly should request the 
governments of the area to continue to cooperate 
with the Director of Unrwa in seeking and carry- 
ing out projects which are capable of supporting 
substantial numbers of refugees. This is sound 
economic sense, both for the Arab governments 
concerned and for the refugees. It is also sound 
economic sense for the contributors. The com- 
mittee will recall my statement of the other day 
with respect to the importance we attach to the 
early start of such projects as those in Sinai and 
the Jordan Valley. As we believe that the Direc- 
tor is now empowered to conduct any program 
desired by the host countries for which he can 
obtain financial support, we have considered it 
unnecessary to modif}' Unrwa 's terms of refer- 
ence to permit Unrwa to engage in general devel- 
opment programs, which was a subject in the joint 
report of the Director and Advisory Commission. 

We are willing and prepared to .see the rehabili- 
tation fund of $200 million maintained, subject of 
course to the reduction of expenditures already 
made. We are prepared also to approve the relief 
budget of $25.1 million and the rehabilitation 
budget of $36.2 million for the fiscal year ending 
June 30, 1955. In connection with the rehabilita- 
tion budget, we are gratified to note the progress 
made in Unr%va's educational program. 

We share the earnest concern of the Director, 
the Advisory Commission, and the Government 
of Jordan for the plight of the border villagers. 
However, the innnediate solution of that pioblem 
is not within the terms of reference of Uxrwa. 
The resolution before us proposes that the Direc- 
tor be requested to make a study and report on the 
l)roblem of the assistance which should be given 
to other claimants for relief, particularly children 
and border villagers. We believe such a study 
can be useful. We believe it is important, how- 


Department of State Bvlletin 

Resolution on Palestine Refugees^ 

U.N. doe. A/2826 dated December 2 

The General Assembly, 

Recalling Its resolutions 194 (III) of 11 December 
1948, 302 (IV) of 8 December 1949, 393 (V) of 
2 December 1950, 513 (VI) of 26 January 1952, 
614 (VII) of 6 November 1952 and 720 (VIII) of 
27 November 1953, 

Notiny the annual report of the Director of the 
United Nations Relief and Works Agency for Pales- 
tine Refugees in the Near East, and the special 
report of the Director and the Advisory Commis- 
sion of Unbwa, 

Noting that repatriation or compensation of the 
refugees, as provided for in paragraph 11 of resolu- 
tion 194 (III), has not been effected and that the 
situation of the refugees continues to be a matter of 
grave concern, 

1. Decides, without prejudice to the rights of the 
refugees to repatriation or compensation, to extend 
the mandate of the United Nations Relief and Works 
Agency for Palestine Refugees in the Near East for 
five years ending 30 June 1960 ; 

2. Requests the Agency to continue its consulta- 
tion with the United Nations Conciliation Commis- 
sion for Palestine in the best interest of their respec- 
tive tasks with particular reference to paragraph 11 
of resolution 194 (III) ; 

3. Requests the Governments of the area to con- 
tinue to cooperate with the Director of the Agency 
in seeking and carrying out projects capable of 
supporting substantial numbers of refugees ; 

4. Decides to maintain the rehabilitation fund of 
$200 million subject to reductions for expenditures 
already made ; 

5. Approves a relief budget of $25,100,000 and a 
rehabilitation budget of $36,200,000 for the fiscal 
year ending 30 June 1955 ; 

6. Requests the Director, in consultation with the 
Advisory Commission, to study and report upon 
the problem of assistance which should be given to 
other claimants for relief, particularly children 
and needy inhabitants of villages along the demar- 
cation lines ; 

7. Authorizes the Director to prepare, in con- 
sultation with the Advisory Commission, tlie bud- 
gets for relief and rehabilitation in advance of each 
fiscal year, which budgets lie shall transmit to the 
Negotiating Committee for Extra-Budgetary Funds, 
witliout prejudice to review each year by the Gen- 
eral Assembly ; 

8. Requests the Negotiating Committee for Extra- 
Budgetary Funds, after receipt of such budgets 
from the Director of Unbwa to seek such funds 
as may be required by the Agency ; 

9. Appeals to the Governments of Member and 
non-member States to make voluntary contribu- 
tions to the extent necessary to carry through to 
fulfilment the Agency's programmes, and thanks the 
numerous religious, charitable and humanitarian 
organizations for their valuable and continuing 
work in assisting the refugees; 

10. Requests the Director to continue to submit 
the reports referred to in paragraph 21 of resolu- 
tion 302 (IV), as well as tlie annual budgets. 

' Approved in the Ad Hoc Political Committee on 
Nov. 30 by a vote of 41-0-8 (Soviet bloc, Israel, Iraq, 
and Burma) and in the plenary session on Dec. 4 by 
a vote of 48-0-7 (Soviet bloc, Israel, and Iraq). 

ver, tliat wc all understand that the requirement 
if such a report does not place an obligation upon 
his body, and especially upon the present con- 
ributors, to enlarge the present scope of assist- 
ance. We hope that the Director and the Advisory 
Commission will have clearly in mind the position 
if the United State.s set forth in its second reser- 
ation in signing the special joint report. We 
tated it the other day, and we believe it desirable 
repeat it now : 

' The United States believes that any redefinition of a 
ef ugee eligible for relief should be contingent on the estab- 
shment of an effective system for determining the bona 
des of relief recipients and the deletion from the regis- 
•ation rolls of the persons not entitled to relief. The 
'nited States believes that the purpose of the Agency's 
auction in the relief field would be defeated if these steps 
ere not taken and every effort made not to exceed the 
resent number of relief recipients. 

The resolution suggests in operative paragraphs 
7 and 8 what we believe is a more satisfactory 
method of arranging for the preparation of and 
action upon the budgets of Unrwa. In the past 
it has been the practice of the General Assembly 
to autliorize a provisional figure each year as the 
budget for the fortlicoming liscal year. Unfortu- 
nately this provisional figure often had to be ex- 
ceeded in order to carry out tlie program of the 
Agency. The tentative and provisional nature of 
the figures made budgetary planning difficult. 
The resolution proposes that the General Assembly 
autliorize the Director as its agent to prepai-e, in 
consultation with the Advisory Commission, the 
budgets in advance of each liscal year. The budg- 
ets should serve as the firm basis for the Nego- 
tiating Committee for Extra-Budgetary Funds to 
seek financial support from those nations which 

:tnuarY 3, 1955 


desire the futiire well-being of the Near "EaA. 
This new procedure dearly does not prejadice re- 
view of the badgcts each year by the General 
Assembly, if the General Assembly so desires. 

It is of the utmost importance that the appeal 
of the General Assembly be renewed to the govern- 
ments of member and nonmember states to make 
voluntary contributions to the extent necessary to 
fulfill the Agency's programs, present and future. 
If the Agency is to succeed, and if the refugee 
problem is ever to be settled, this appeal cannot be 

In conclusion, we wish to take this opportunity 
to commend the spirit of accord which has made 
this draft resolution possible. It is such a spirit 
which will lead to a solution of this unhappy prob- 
lem. It deserves the encouragement and support 
of this body. 


VM. ddctBtJoB prcM rdcaae 20*2 dated XorcBbcr 2« 

Mr. Chairman, I would like to ask the permis- 
sion of yourself and the conmiittee to make a very 
Ixief statement before we proceed with the list of 

Since my speech of last Wednesday, three other 
speakers have expressed doubt and concern over 
what apparently seemed to them a change in the 
policy of my Government. I have asked for the 
flo<M" in order to reply to these expressions and in 
order to avoid any further misunderstanding. 

Paragraph 11 of Resolution 194 (III), which is 
referred to both in the preamble and operative 
paragraph 2 of the four-power draft resolution 
now before us, reads as follows : 

11. Retolrei that the refnge«g wishing to retarn to their 
bomea and tire at peace with their nei^ihbors gboold be 
permitted to do bo at the earliest practicable date, and 
that compensation shoold be paid for the property of those 
cb'fmint; o/tt to return and for loss of or damaze to prop- 
erty which, onder principles of international law or in 
equity, Blioald be made good by the GoTemments or 
aathorities responsible. 

Now, ilr. Chairman, it will be noted that this 
calls for repatriation or compensation to the Arabs 
choosing not to return. 

My statement, which has apparently been mis- 
understood, was that Israel ought to satisfy one or 
the other of the two rights. I did not say that 
Israel should choose one or the other of the two 

courses of action. No one should read into thai 
statement any question of the abandonment of 
repatriation in favor of compensation, and no one 
should read into that statement that Israel instead 
of the refugee has the choice of these rights. 

It is therefore apparent that the position of n 
Government has not changed. 

Assembly Adopts Resolution on 
Morocco by Overwhelming Vote 

Statements by Henry Caiot Lodge. Jr. 

U.S. Repreientative to the General Assembly ^ 


U.S. ddegation press rdease 2081 dated December 13 

TVe believe that the peaceful and progress:" 
development of free and vital political institutioL 
capable of fulfilling the aspirations of the peop'.- 
of Morocco would benefit both France and Morr*- 
co and would best promote the principles of t": 
United Nations. The United States, with its tra 
ditional sympathy for the aspirations of peoples 
for self-government , fully supports this view. W( 
must at the same time consider carefully what wf 
in this Assembly can do to facilitate progress t 
ward this goal and not inadvertently do thinr 
which tend to defeat their own purpose. 

The United States maintains the view which : 
has expressed in past sessions of this body thai 
this goal is best attained through sincere and co- 
operative efforts on the part of the peoples and 
Governments of France and Morocco. It is tbe^ 
who must work together and work out their r 
lationship in larger freedom. 

That is why the United States does not intenc 
to give its support to a resolution at this time. 

Although there is some language in the resolu- 
tion now before the committee which we belie't^ 
would hinder progress in negotiations betwec 
France and Morocco, we are frank to say th- 
there clearly are sentiments in the resolution c 
which we approve. And we do not hesitate tc 
answer in the aflirmative the question which wai 
addressed to us last Saturday as to whether the 

• Made in Committee I (Political and Security) on D« 
13 and in the plenary session on Dec 17. 


DepartmenI of Slate Bullelim 

Jnited States still adheres to President Eisen- 
Lower's declaration of last June 29 ^ in support of 
he principles of self-government. We do so ad- 

But we feel that as a practical matter the pas- 
age of resolutions would be inadvisable at this 
ime, given our belief that the present Govern- 
lent of France is sincerely striving to settle this 
roblem in accordance with the purposes and 
rinciples of the United Nations Charter. 
Now, Mr. Chairman, the time of course may 
jme when passing resolutions here will do some 
cod. We do not feel that this is the time. We 
re in an era of practical action rather than ex- 
ortation, at least so it seems to us. 
Therefore, we think that the best way to en- 
mrage progress toward this goal is to welcome 
^ery indication of good will and cooperative ef- 
)rt on the part of the parties concerned. By thus 
jmonstrating our faith in their common purpose, 
6 may hope to encourage them to greater 

We are also convinced that progress toward 
If -government for Morocco can best be achieved 
' direct negotiations between France and Mo- 
icco, and by agreements responsive to the aspira- 
ms of the Moroccan people. This is the method 
commended by the General Assembly in its 
solution on Morocco of December 19, 1952.' We 
lieve that no other method is so likely to achieve 
nstructive and early results. 
This method is being applied with great prom- 
) of success in the case of Tunisia, Negotiations 
tween the representatives of the French and 
anisian Governments are now in progress, tak- 
g place in an atmosjDhere of conciliation and 
nfidence. The United Nations can take satisf ac- 
)n in the fact that the methods of settlement sug- 
sted by the Assembly in 1952 with respect to 
is question are being applied. We have recently 
tnessed the highly successful joint initiative of 
e French and Tunisian Governments in induc- 
■y rebel elements to lay down their arms and to 
:;urn peacefully to their homes. This partner- 
iip is striking evidence of the ability of the 
lench and Tunisians to act together in the solu- 
i'n of their common problems. 

Bulletin of July 12, 1954, p. 49. 
Ibid., Jan. 5, 1953, p. 36. 

If progress is slower in Morocco, it is because 
the situation there is considerably more complex, 
so that conditions for successful negotiation have 
been more difficult to establish. We therefore de- 
plore any measures such as acts of terrorism and 
violence which make negotiations difficult and 
which can only interfere with the orderly political 
development and the social and economic progress 
of the Moroccan people. 

But despite the slower rate of progress evident 
in Morocco, the United States believes that the 
example furnished by recent developments with 
regard to Tunisia wiU commend itself, both to 
France and Morocco, as the approach most con- 
ducive to a harmonious settlement of the Moroc- 
can problem. This approach, calling as it does for 
cooperative effort and good will on the part of the 
parties directly concerned, is also in the best inter- 
ests of the United Nations and of fulfilhnent of 
charter principles. It is the approach most likely 
to promote the orderly progress of peoples who 
have not yet achieved a full measure of self- 


U.S. delegation press release 2085 dated December 13 

The United States delegation had hoped to vote 
for the draft resolution which has just been 
adopted," but we did not feel that we could do so 
after the committee defeated the Dominican Re- 
public amendment, which expressed confidence in 
the intentions of the Government of France to 
work out the problem. We do have confidence in 
the Government of France, and in M. Mendes- 
France in particular. We think that he will be 
able to work this out and should be given every 
opportunity to do so, and that is the reason why 
we did not vote for this resolution, which other- 
wise we should have liked to have supported. 

*On Dec. 13 Committee I, by a vote of 39-15 (U.S.)-4, 
adopted a revised draft resolution (U.N. doc. A/C. l/L. 
123) cosponsored by Afgliauistan, Burma, Egypt, India, 
Indonesia, Iran, Iraq, Lebanon, Pakistan, Saudi Arabia, 
Syria, and Yemen. With this draft the committee recom- 
mended that the Assembly, "noting that some delegations 
declared that negotiations betvpeen France and Morocco 
will be initiated regarding this question," decide "to post- 
pone for the time being further consideration of the item." 

Inuary 3, 7955 



U.S. di'lrKotlun preii» rploaiK 2(p0« dated rH-rcmbor 17 

The United Stiito-s ilele^iitiun coniinend.s tlie 
vurioiis (lele<pi(e.s wliose lonciliiitory iittitude made 
possible tliisoverwlieliniiig support for the re.sohi- 
tion on the Moroccan question. 

The United Stjites is glad to have been able to 
join the Arab delegations in this vote of confidence 
tliat a satisfactorj' solution will be found. 

May I say this is also the attitude of the United 
States on the Tunisian resolution which follows. 


D.N. dor. A/Kp«. 21iO 

The (Icncral AsHcnibly. 

Bavitm examined the Moroccan question, 

tioting that some deleKtttions declared that negotia- 
tions between France and Morocco will be initiated rejfard- 
inc this question, 

ExprcHKing confidence that a satisfactory solution will 
be achieved. 

Derides to postpone for the time being further considera- 
tion of the item. 

U.N. Expresses Confidence in 
French-Tunisian Negotiations 

Statements by James J. Wadswortk 

U.S. Representative to the General Assembly ' 


1 to say only a few words on this question 
because in the view of my Government the present 
outlook for substantial progress in self-govern- 
ment for Tunisia makes extended discussion in this 
Assembly neither desirable nor necessary. 

We believe that current negotiations between 
France and representatives of the Tunisian Gov- 
ernment are in accordance with the sense of the 
Assembly re.solution of December 17, 1952,= which 
recommended bilateral negotiations on this prob- 
lem. And with long-awaited and important 

'Approved In plenary session on Dec. 17 by a vote of 

'Made In Commlttw I (Political and Security) on 
Dec. 10 (U.S. delegation press releases 2093 and 20!)4). 

• Buixm.N of Dec. 21), 11).';2, p. 1045. 


negotiations actually in progress now and witli 
the conciliatory atmosphere which surrounds 
them, we can take satisfaction in the fact that 
the methods of settlement suggested by the A- 
sembly are being applied. 

Now, Mr. Chairman, both the distinguished 
repre.sentative of Syria [Ahmed Shukairy] and 
the distinguished representative of Egj'pt [Omar 
Loutfi] have reminded us of the historic and 
welcome statement made on July 31 by the Prime 
Minister of France, and I will not take the time of 
the committee to requote what he said that day. 
I would wish to remind the members of the com- 
mittee, however, that M. Mendes-France confirmed 
this policj' to the members of this Assembly last 
November 22, expressing his faith in the future of 
a liberal policy of mutual understanding and 
political, economic, and social progress. 

As Ambassador Lodge pointed out in this com- 
mittee on December 13,' 

We have recently witnessed the highly successful .loint 
initiative of the French and Tunisian Governments in 
inducins rebel elements to lay down their arms and to 
return peacefully to their homes. The partnership is 
striking evidence of the ability of the French and Tunisi- 
ans to act together in the solution of their common 

Now, Mr. Chairman, my delegation fully ap- 
preciates the moderate and conciliatory attitude 
shown by the sponsors of the draft resolution be- 
fore us.'' However, because of my Government V 
strong belief that it would not be advisable to pa^^ 
any resolution at this time, I would appeal to the 
sponsors not to press this pro]>osal to a vote. This 
draft which is before us and the statements which 
the sponsors have made and are making to this 
committee can stand in the official record as an 
expression of their views, and I feel sure that 
our rapporteur could make an appropriate note 
of it in his report. 


Although my delegation, as I made clear this 
morning, believed that no resolution at this time 
was desirable in view of the auspicious atmos- 

* See p. 29. 

' U.N. doc. A/C.1/L.12S. The cosponsors were Afghan- 
istan, Burma, Egypt, India, Indonesia, Iran, Iraq, Leba- 
non, Pakistan, Philippines, Saudi Arabia, Syria, Thailand, 
and Yemen. 

Department of State Bulletin 

phere in whicli the negotiations were being con- 
ducted, I am glad to have been able to vote for the 
revised resolution. 

In our view, by expressing confidence we are, in 
fact, saying to both parties — we trust you to carry 
this forward to a successful conclusion; and by 
expressing confidence that the negotiations will 
bring about a satisfactory solution, we are ex- 
pressing our collective support of the cooperative 
eifort being made by both the French and the 
Tunisian Governments. 

As such, I trust that a resolution of this type 
will help to maintain the favorable atmosphere 
which holds so much promise for both sides. 


D.N. doc. A/C.1/765 

The General Assembly, 

Having considered the Tunisian Question ; 

Notin-g with satisfaction that the parties concerned have 
entered into negotiations and that these negotiations are 
still in progress ; 

Expressing the confidence that the said negotiations will 
Dring about a satisfactory solution ; 

Decides to postpone for the time being the further con- 
sideration of this item. 

J.N. Cuts Off Discussion 
)f Cyprus Question 

When cojmnittee I {Political and Security) 
'legan consideration of the Cyprus question on 
December H, it had before it a draft resolution 
■ubmitted by Greece {A/C.l/L.12Jf) whereby,^ 
nter alia, the General Assembly would express 
he wish that the principle of self-deterTnination 
'e applied in the case of the population of the 
'sland of Cyprus. On a point of order, Leslie 
'{no.P Munro, the representative of New Zealand, 
ntvoduced a draft resolution {A/C.1/L.125) 
'ihereby the Assembly would decide not to con- 
idrr the item further. He requested, and the 

' Adopted by Committee I on Dec. 16 by a vote of 54-0-3 
nd in plenary session on Dec. 17, .56-0-3. The original 
raft differed from the final draft in two respects : it 
)ntiuned another preambular paragraph "Appealing to 
le parties to deal with the problem in a spirit of mutual 
aderstanding" ; and the last paragraph of the preamble 
;ad, "Expressing the hope that the said negotiations will 
■ing about a satisfactory solution in confonnity with the 
■inciples of the Charter." 

committee agreed {28-15-16), that the New 
Zealand proposal wovld have priority in the dis- 
cussion and in the vote. Following are two state- 
ments Tnade by Henry Cabot Lodge, Jr., U. S. 
representative to the General Assembly, in Com- 
mittee I on December H {U.S. delegation press 
release 208Jf). 


I have noted what the representative of New 
Zealand has said about not wishing to gag any- 
one. I liave not only noted it but I agree with it. 
It is my belief that giving his motion priority 
would in no way prevent the representative of 
Greece [Alexis Kyron] from making his state- 
ment. Certainly I would defend his right to make 
his statement and contend that it is not affected 
by our adoption of this New Zealand resolution 
and by our giving it priority. 

It seems to me, though, that the nature of the 
motion made by the representative of New 
Zealand, which has been circulated, is such that it 
should logically be given priority in the discussion 
and in the voting. 

The United States supports, for that reason, the 
proposal of the New Zealand representative to give 
priority to his motion, and I reserve the right, 
Mr. Chairman, to make a brief statement on the 
merits of the New Zealand proposal itself at the 
proper time. 

With all due respect to the distinguished gentle- 
men here who hold an opposite view, I would like 
to say that I do not agree with the contention that 
a two-thirds majority is needed on the proposal 
of the representative of New Zealand. 

It seems to me that rule 124 applies to the adop- 
tion or rejection of proposals. The General As- 
sembly has not adopted any proposals on this ques- 
tion. All that it has done is to decide to place 
this item on the agenda. 

Let me say, too, that the adoption of the pro- 
posal of the representative of New Zealand does 
not involve in my opinion a reconsideration of 
the Assembly's decision to place this item on the 
agenda. Therefore, I think that a simple majority 
is required for its adoption. 

I would call attention to the fact that the resolu- 
tion of the representative of New Zealand does not 
say that we shall not "discuss"' the question. It 

snuory 3, 7955 


says that we shall not "consider" it, and in my view 
there is a very real difference between the word 
"consider" and the word "discuss." The word 
"consider" involves passing a judgment, and the 
word "discuss" does not. Therefore, it seems to 
me that a fundamentally different attitude of mind 
must be held toward the proposition not to "con- 
sider" from that wliich one would have with re- 
gard to a proposition not to "discuss." 

Now, let me say, Mr. Chairman, that the fact 
that the question of Cyprus has been raised in the 
United Nations at this time is a matter of very 
deep concern to the United States. It affects the 
interests and sentiments of nations and peoples 
with whom we feel the closest bonds of sympathy. 
Moreover, the welfare of much of the free world 
depends upon the maintenance of their historic 
friendship and mutual trust among each other. 

The United States is convinced that the para- 
mount task before this body is to dispose of this 
item so as not to impair that friendship and trust, 
because that continuing relationship and solidar- 
ity are vitally important to the peace and stability 
of the area of which Cyprus is a part. 

After very searching and deliberate thought and 
lengthy consultations with those directly con- 
cerned, we in the United States Government have 
reached the conclusion that tlie course of wisdom 
is that proposed by the representative of New 

Recognizing the deep emotions which have al- 
ready been stirretl by this issue, we believe that a 
prolonged consideration in this forum would only 
increase tensions and embitter national feelings at 
a time when the larger interests of all concerned 
are best served by strengthening existing solidar- 
ity among freedom-loving nations. 

The United States therefore will vote in favor 
of the motion proposed by the representative of 
New Zealand. 


U.N. doc. A/C.1/7C4 

The General Assembly, 

Considering tliat, for the time being, it does not appear 
appropriate to adopt a resolution on the question of 

' Sponsored by New Zealand ; adopted, as amended, by 
Committee I on Dec. 15, liy a vote of 49-0-11, and In the 
plenary session on Dec. 17, 50-0-8. 

Decides not to consider further the item entitled 
"Application, under the auspices of the United Nations, 
of the principle of equal rights and self-determination of 
peoples in the case of the population of the Island of 

The Problem of Apartheid 
in South Africa 

Statements by James J. Wadsworth 

U.S. Representative to the General Assembly ^ 


U.S. delegation press release 2062 dated December 6 

The question of race conflict in the Union of 
South Africa has been before the General Assem- 
bly for 2 years. It involves the subject of race " 
relations within a member state and is a matter 
which my Government views with deep concern. 
Our primary desire is to promote, within the 
framework of the charter, the objectives of the 
United Nations in the field of himian rights. 

The charter marked a liistoric step forward 
when it included among the purposes of the 
United Nations the achievement of international 
cooperation in promoting and encouraging respect 
for hmnan rights and fundamental freedoms for 
all without distinction as to rac«, sex, language, or 
religion. This represented an important innova- 
tion in international life. The very newness and 
importance of the concept makes it essential that 
the United Nations proceed with the greatest care 
in order to avoid blighting the prospects for con- 
structive growth in this field. 

It is axiomatic that problems which arise in th( 
delicate area of relationship between individual; 
cannot be solved overnight. Their solution re 
quires constructive action exercised with a higl 
degree of responsibility. They require patient ef 
forts of all of us, within the broad guidelines laic 
down in the charter and within the framework o: 
any broad declarations of principle which thi; 
Assembly has already made or may make. 

A key point which the United States has sough 
to stress during consideration of this item at previ 

' Made in the Ad Boc Political Committee on Dec. 
and 8. 


Department of Slate Bulletii 

ous sessions is the importance of determining how 
the United Nations can best play the part laid 
down for it in the charter with respect to the ad- 
vancement of hmnan rights. This brings us at 
once to the question of the competence of the or- 
ganization in this field. 

We have no doubt that the drafters of the char- 
ter believed that the United Nations had a positive 
role in the field of human rights. How otherwise 
can we explain the presence of those provisions of 
the charter such as articles 55 and 56 ? Ai'ticle 55 
specifies that the United Nations shall promote 
"universal respect for, and observance of, human 
rights and fundamental freedoms for all without 
distinction as to race, sex, language, or religion." 
Article 56 provides that all members "pledge 
themselves to take joint and separate action in 
cooperation with the Organization for the achieve- 
ment of the purposes set forth in Article 55." 

While the United States Government is not in 
accord with some of the extreme views regarding 
the application of article 2 (7) ^ to this case, we 
believe it is essential that the Assembly should at 
all times bear in mind the domestic jurisdiction 
provisions of the charter. Ambassador Lodge re- 
iterated this year in the General Committee our 
view that items of this character invite questions 
concerning the competence of the Assembly under 
article 2 (7) of the charter.^ He also emphasized 
our concern over a tendency in the Assembly to 
include in the agenda items whose international 
character is subject to question and which could 
affect the authority and sound development of the 
United Nations. 

The importance of reaching a soimd basis for 
our work with respect to the advancement of 
human rights so that its effects will be constructive 
cannot be overemphasized. Let me recall the 
words of the United States representative in this 
committee [Mrs. Frances P. Bolton] who spoke on 
this problem last year. She said : 

When the United Nations considers critical human 
rights problems within a particular country, that consid- 

' Article 2 (7) of the U.N. Charter reads as foUows: 
"Nothing contained in the present Charter shall author- 
ize the United Nations to intervene in matters which are 
sssentially within the domestic jurisdiction of any state 
3T shall require the Members to submit such matters to 
settlement under the present Charter; but this principle 
shall not prejudice the application of enforcement meas- 
ires under Chapter VII." 

' U.S./U.N. press release 1959, dated Sept. 22, 1954. 

fanuary 3, 1955 

eration should be related to developments throughout the 
world in the field of human rights and should be directed 
tovpard the evolution of international standards having 
general application. At the end of such a consideration, 
the United Nations can usefully go on record by stating 
its general conclusions as to the objectives wliich each 
Member should pursue in the human rights field. This 
expression of opinion by the organized community of na- 
tions should serve as a helpful guide to all Members. 

My delegation believes that the way the Assem- 
bly should deal with the present item is to reaffirm 
its belief in the basic wisdom and the universal 
validity of the human-rights provisions of the 
charter as a standard to which all members should 

This is the basis for our view that the Assembly 
should not consider this problem in terms of con- 
ditions in the Union of South Africa alone but in 
relationship to developments throughout the 
world. This was why we did not support the 
establislmient of the United Nations Commission 
on the Racial Situation in the Union of South 
Africa. We seriously doubted its usefulness. We 
were convinced that this was not the way to en- 
courage and nurture a constructive solution to the 
problem before us. The experience of the past 2 
years and the two reports of the Commission * have 
justified no change in that initial opinion. 

This year the Commission has included in its 
report further information collected by it concern- 
ing the situation in South Africa. It has also 
reviewed various solutions proposed in South 
Africa for the settlement of racial problems. 
Moreover, it has sought information on what it 
hoped might be relevant experience in other coun- 

In so doing, it has fallen into the regrettable 
error of seeking to judge one country by the situa- 
tion in another. Unfortunately, its siunmaries of 
the situation elsewhere suggest in some instances 
perfection, where in fact the situation is far from 
satisfactory. For example, the Commission states 
flatly that^ 

in the Union of Soviet Socialist Republics, racial problems 
have been resolved as a result of continuous and effective 
action by the government and authorities. Racial dis- 
crimination has been abolished and any attempt to prac- 
tice it constitutes an offense. 

The Commission then cited appropriate provi- 
sions of the Soviet Constitution to demonstrate 

' U.N. docs. A/2505 and Add. 1, and A/2719. 


tliat (he pririi-iple of noiuliscriiiiiniition was an 
important part of t\m Soviet system. 

If we should look beyond documentary evidence 
and study governmental practices we might well 
come to a quite dilFerent conclusion. It is idle 
to pretend that in any country, and particularly 
in the Soviet Union, racial bigotry has been or 
can be effaced by a mere declaration. In fact, 
racial discrimination continues to exist in the 
Soviet Union, and this is admitted in the Soviet 

Many practices followed by the Soviet Union 
are inconsistent with respect for national and 
religious traditions of minority peojiles. Among 
these are the forcible destruction of ancient re- 
ligious rites and practices, notably of Islam; the 
rewriting of the history of minority peoples so as 
to eliminate all criticism of tilings Russian; and 
even the elimination of praise of national heroes 
who fought against the Tsarist regime. 

Moreover, the value of Moscow pledges of local 
autonomy to national minorities was demonstrated 
during and since World War II. In this pexiod, 
the U. S. S. R. has deported or killed more than 
1,G00,000 persons, comprising the total population 
of nine non-Russian ethnic minorities, and has 
arbitrarily dissolved or reorganized six of its 
"autonomous'' administrative units. Moscow's 
failure to list these peoples any more as separate 
nationaliti&s suggests that they are now being 
forcibly assimilated at their places of residence. 

The purpose of mentioning these facts is not to 
provoke a debate eitlier on the accuracy of the 
Commission's report or on the subject of racial 
equality. Rather, it is to suggest that the insertion 
of proi)aganda and half-truths into a serious 
study of this very intricate problem cannot be 
helpful and should be avoided. 

We realize full well, as othei-s do, that translat- 
ing ideals into realities in the field of human re- 
lations is both difficult and often painfully slow. 
My own country is a case in point. It is made up 
of a number of different racial groups— a melting 
pot in every sense of the word. Wliile happily 
becoming more and more rare, there are still oc- 
casions on which all peoples do not receive equal 
treatment. We recognize that none of us enjoys 
perfection in this field. Hut we have been moving 
steadily forward toward the translation into 
reality of the i)r()position tliat "all men are created 

For example, until last year, although there was 
considerable opinion that the condition was wrong, 
legal segregation in the education of white and 
negi'o students in many of our southern States still 
existed. AVhen the Supreme Court of the United 
States recently rendered its historic decision, it 
emphasized the importance of education if a child 
is to be expected to succeed in life. The Court 
went on to say that to separate children from 
others of the same age and qualifications "solely 
because of their race, generates a feeling of in- 
feriority as to their standards in the community 
that may affect their hearts and minds in a way 
unlikely ever to be undone."' At the same time the 
Court appreciated that the implementation of this 
decision would require time. In this one c;ise there 
is ample illustration of the point that this com- 
mittee must constantly bear in mind — that changes 
in this field cannot come at one stroke. It also 
demonstrates another essential point, that the full 
assistance of those directly afl'ected will be crucial 
in the further implementation of the Court's 

This year the Commission on the Racial Situa- 
tion in the Union of South Africa has ventured to 
discuss the possibilities of a peaceful settlement of 
the racial problems in South Africa. One point 
stands out in this section of the report. The Com- 
mission states unequivocally that "any measures 
to reduce racial conflicts must be the result of ef- 
forts initiated within the Union itself." It is also 
emphasized that "it is for the South African 
people themselves to solve their problem." The 
validity of both points is borne out in the ex- 
perience of all of us in the human-rights field. We 
must not lose sight of them in our consideration of 
the i)resent item. 

At the same time, the Commission's report states 
that there is a place for "disinterested interna- 
tional offers of good offices." It also ventures to 
suggest, presumably for the consideration of the 
people of South Africa, various means that might 
be useful in bringing about a peaceful settlement. 
But, according to the Commission's own reason- 
ing, its suggestions can be useful only if the South 
African people themselves decide to draw upon 
them. This is also our view-, Mr. Chairman. The 
list of suggestions contained in the Commission- 
report can be of utility and are valid only if tin 
South Africans decide to employ any of thesf 


Department of State Bulletin 

I should like also to coniment on the suggestion 
in the Commission's report that the United Na- 
tions should oiler to set up at South Afi-ica's re- 
quest "a committee of technical experts specializ- 
ing in the jjlanning of economic and social 
; develojiment, j)articularly in multi-racial societies, 
I who might be asked to catalogue all the various 
forms of assistance which the United Nations and 
the Specialized Agencies can supply."' 
; Mr. Chairman, the United Nations and the spe- 
cialized agencies may well have the experience and 
be in a position to provide such technical assist- 
ance. However, we cannot agree with the Com- 
mission's apparent intention that this arrange- 
ment should be made for South Africa only. This 
ivould give the unjustifiable impression that South 
ifrica is the only member needing such advice 
uid assistance. Most of us here have and admit 
• )ur problems in this field. If there is to be any 
;uch arrangement for an exchange of technical 
idvice and experience, certainly it should not be 
,n arrangement covering one country alone, 
lather, it might be a pool within the United Na- 
ions upon which all members could draw and to 
ihich all might contribute as they could. 
Finally, Mr. Chairman, I should like again to 
nderscore our belief that the constructive ap- 
roach to problems of human rights is in the 
erspective of the worldwide human-rights sit- 
ation. For my delegation that means that we 
lust continue to proclaim as the standard to which 
11 of us should aspire the general principle of 
,, Jspect for human rights and for fundamental 
I eedoms for all without distinction as to race, 
'x, language, or religion. Each in our own way 
ul in accordance with our own situation can and 
list make advances as rapidly as feasible if the 
jals of the charter in the field of human rights 
e to be realized. 


5. delegation press release 2071 dated December 8 

As I indicated in my speech in the general de- 
te on this item, the United States does not re- 
, rd the perpetuation of the United Nations Com- 
• ssion on the Racial Situation in the Union of 
'> aith Africa as the proper means of dealing with 
I } situation. We continue to believe that the 
1 )st useful way in which to approach this prob- 

lem of liuman rights is, first, to relate its consid- 
eration to developments and conditions through- 
out the world and, second, for the Assembly to 
state, and where appropriate to reaffirm, the ob- 
jectives to which all members should aspire in the 
promotion and encouragement of human rights. 
In the long run, we think this course would be 
more effective in bringing about the result we all 
desire than any other action within the compe- 
tence of this body. 

We will support the first amendment submitted 
by Argentina, Brazil, and Cuba ^ calling for the 
deletion of the fifth paragraph of the preamble, 
for the same general reasons expressed by the dis- 
tinguished rei^resentative of Argentina [Rodolfo 
Munoz] yesterday. 

Without reflecting in any way upon the person- 
nel of the Commission and particularly its chair- 
man, we have always entertained serious doubts 
as to the usefulness of the Commission's work. 
Nothing it has done or said in its report during 
the past 2 years has altered our judgment of its 
lack of practical value in the South African situ- 
ation. Whatever may have been the basis at the 
outset for the contrary view, we see no reason to 
prolong its existence now and consequently op- 
pose and will vote against operative paragraphs 
6 and 7 of the 20-power resolution which contin- 
ues the Commission and requests it to report to 
the tenth session." 

Furthermore, we will vote against paragraph 4 
as amended which invites South Africa to take 
into account the experiences of other multiracial 
societies as described in chapter 7 of the Commis- 
sion's report. We believe the amendment im- 
proves the paragraph, but we still cannot support 
it. Aside from the error of urging one country 
to follow the patterns followed by others, to refer 
South Africa to the experience of other multi- 
racial states seems to rest upon the assumption 
that the situation elsewhere is in every case be- 
yond criticism — which is simply not true. I 
would like to repeat my earlier criticisms of this 
chapter, which in its comments on Soviet racial 
policies seems to us to be highly naive, to say the 
least. As the Commission itself emphasized time 
and again in its report, it is for the South African 
people themselves to work out their problems. If 

' U.N. doc. A/AC. 76/L. 21. 
" U.N. doc. A/ AC. 76/L. 20. 

Jrjuary 3, J 955 


this criterion is accepted, as we believe it should 
be, it follows tliat the South African people must 
also decide themselves what measures are best 
suited to their problems. 

To sum up, the United States is voting against 
three paragraphs of the 20-power resolution, oper- 
ative paragraphs 4, 6, and 7, for the reasons I have 
already given. We will abstain on all other para- 
graphs of the resolution and on the vote on the 
resolution as a whole. We are abstaining because 
we do not believe that this resolution is the best 
way to achieve results. On the other hand, the 
United States Government, as every member of 
this organization knows, opposes every form of 
racial discrimination, and it is abstaining because 
it does not wish to cast a vote that could be re- 
garded as in any way condoning the racial poli- 
cies of the Union of South Africa. 

In order to a fiord my delegation and others the 
opportunity of expressing their opinions on these 
various matters, I ask that the vote on this resolu- 
tion be taken by paragraphs.' 

Current U.N. Documents 
A Selected Bibliography » 

Economic and Social Council 

Economic Commission for Asia and the Far East. Report 
of the ReKionai Technical Conference on Water 
Resources Development. E/CN.11/391 (E/CN.ll/ 
FLOOD/12). June 30, 1954. 44 pp. mimeo. 

Full Employment. Implementation of full employment, 
economic development and balance of payments 
policies. Argentina. E/2565/Add. 10. July 21, 
1954. 24 pp. mimeo. 

Expanded Profrramme of Technical Assistance. Report 
of the Technical Assistance Committee. E/2637. 
July 20, 19."i4. IG pp. mimeo. 

Application from the Bulgarian People's Republic for 
Membership in the United Nations Educational, 
Scientific and Cultural Organization. Note by the 
Secretary-General. E/2642. July 29, 1954. 4 pp. 

Organization and Operation of the Council and its Com- 
missions. Permanent Advisory Commission on Inter- 
national Commodity Trade. E/2623, June 30, 1954. 
17 pp. mimeo. 

' On Dec. 8 the Ad Hoc Political Committee adopted the 
20-power draft resolution (U.N. doc. A/AC.76/L. 20/Rev. 
1) by a vote of 34-9-10. The resolution was approved in 
plenary session on Dec. 14 by a vote of 40-10-10. In each 
case the United States abstained. 

• Printed materials may be secured in the United States 
from the International Documents Service, Columbia 
University Press, 2SK50 Broadway, New York 27, N. Y. 
Other materials (mimeographed or processed documents) 
may Iw consulted at certain designated libraries in the 
United States. 


Report of the Commission on Human Rights (Tenth Ses-*^ 

sion). Report of the Social Committee. E/2638, 

July 26, 1954. 6 pp. mimeo. 
World Economic Situation. Report of the Economic 

Committee. E/2643, July 30, 1954. 6 pp. mimeo. 
Economic Development of Under-developed Countries. 

Report of the Economic Committee. E/2644, August 

3, 1954. 4 pp. mimeo. 
Organization and Operation of the Council and its Com- 
missions. Report of the Co-ordination Committee 

E/2649, August 4, 1954. 37 pp. mimeo. 
European Housing Progress and Policies in 1953. Countrj 

Reports. E/ECE/190, E/ECE/IM/HOU/50, August 

5, 1954. 206 pp. mimeo. 
Calendar of Conferences for 1955. Note by the Secretary 

General. E/2651, August 5, 1954. 5 pp. mimeo. 
Full Employment. Implementation of Full Employment 

EiConomie Development and Balance of Payment! 

Policies. YuKOslavia. E/2565/Add.ll, August 26 

1954. 36 pp. mimeo. 
United Nations Children's Fund. General Progress Re 

port of the Executive Director. Introduction 

E/ICEF/276/Add.l, September 1, 1954. 15 pp 

Seventeenth Report of the Administrative Committee oi 

Co-ordination to the Economic and Social Council 

E/2659, October 15, 1954. 11 pp. mimeo. 
United Nations Conference on the Status of Statelesi 

Persons. Final Act. E/CONF.17/5, [September 2i 

1954]. 28 pp. mimeo. 

Security Council 

Decisions Taken and Resolutions Adopted by the Securit; 
Council During the Year 1953. S/INF/8. A« 
20, 1954. 12 pp. mimeo. 

Letter Dated 10 September 1954 from the Representative ( _ 
the Union of Soviet Socialist Republics Addresset r. 
to the President of the Security Council. S/328f ,. 
September 10, 1954. 5 pp. mimeo. 

Report by the Chief of Staff of the Truce Supervisio 
Organization to the Secretary-General Concernin 
the Incident in the Beit Liqya Area. S/3290, Septem 
ber 14, 1954. 10 pp. mimeo. 

Letter Dated 30 September 1954 from the Permanen 
Representative of Egypt to the President of th 
Security Council. S/3298, October 1, 1954. 1 i 

Letter Dated 4 October 19.54 from the Representative o 
Israel Addressed to the President of the Securit: 
Council. S/3300, October 4, 1954. 1 p. mimeo. 

Letter Dated 5 October 1954 from the Observer of Ital, 
to the United Nations and the Representatives of th 
United Kingdom, the United States of America am 
Yugoslavia, Addressed to the President of the Seen 
rity Council [transmitting the October 5 Memoranduu 
of Understanding regarding Trieste]. S/3301, Oc 
tober 5, 1954. 12 pp. mimeo. 

Letter I>ated 7 October 1954 from the Permanent Repre : 
sentative of Egypt to the President of the Securit; 
Council. S/3302, October 7, 1954. 1 p. mimeo. 

Letter Dated 12 October 1954 from the Permanent Repre 
sentative of the Union of Soviet Socialist Repub j^ 
lies. Addressed to the President of the Security Conn 
cil [taking cognizance of the Trieste agreement] & 
S/3305, October 13, 1954. 1 p. mimeo. 


Standard Minimum Rules for the Treatment of Prisoners 
Oli.servations Relating to the Revised Draft of Stand 
ard Minimum Rules for the Treatment of Prisoner! 
Approved by the International Penal and Peniten 
tiary Commission on 6 July 1951. ST/SOA/SD/L.t 
Add.l/Corr.l, September 7, 1954. 1 p. mimeo. 

Department of State BuHohV '» 


ncome-Tax Convention With 
ederal Republic of Germany 

ress release 724 dated December 21 

On December 20, 1954, the income-tax conven- 
on between the United States and the Federal 
iepublic of Germany was brought into force by 
irtue of the exchange of instruments of ratifica- 
on at Bonn. 

The Convention for the Avoidance of Double 
'axation With Respect to Taxes on Income was 
gned at Washington on July 22, 1954. On 
.ugust 20, 1954, the Senate gave its advice and 
msent to ratification of the convention. The 
'resident ratified it on September 22, 1954. 

The provisions of the convention follow, in gen- 
ial, the pattern of income-tax conventions be- 
veen the United States and a number of other 
juntries. It is designed to remove an undesir- 
3le impediment to international trade and eco- 
omic development by doing away as far as pos- 
ble with double taxation on the same income. 

Under the terms of the convention, it is effec- 
ve for taxable years beginning on or after the 
rst day of the calendar year in which such ex- 
lange takes place, namely, January 1, 1954. 

In the United States the provisions of the con- 
jntion establishing rules for avoidance of double 
ixation and for administrative cooperation apply 
ily to Federal taxes and do not apply to the im- 
>sition of taxes by the States, the District of Co- 
mbia, or the territories or possessions of the 

nited States. In the Federal Republic of Ger- 

any the convention applies to the income tax, 

irporation tax, and the Berlin emergency contri- 

ition {Notopfer). 

.S. and Panama Complete 
I egotiations for New Treaty 


1 'ss release 727 dated December 21 

Negotiations, commenced in September 1953, 
1 ve been completed for a new treaty and certain 

Released simultaneously at Panama City. 

'inuary 3, 1955 

understandings regarding matters of common 
concern to Panama and the United States arising 
from the construction, operation, maintenance, 
and protection of the Panama Canal. The United 
States and Panama are pleased to find themselves 
in agreement on the solution of various important 
matters which representatives of the two Govern- 
ments have been considering for more than a year. 
Signing of the documents is expected to take 
place in Panama in early January. Foreign Min- 
ister Jose Ramon Guizado will sign the treaty and 
understandings on behalf of the Republic of Pan- 
ama and Ambassador Selden Chapin for the 
United States. The agreements will be subject to 
ratification in conformity with the constitutional 
methods of each country. 

Current Actions 


Automotive Traffic 

Convention on road traflBc, with annexes. Dated at 
Geneva September 19, 1949. Entered into force March 
26, 1952. TIAS 2487. 

Accession deposited (excluding annexes 1 and 2) : 
Australia, December 7, 1954. 

Convention on customs facilities for touring. Done at 
New York June 4, 1954.' 

Signatures: .Japan, December 2, 1954; Luxembourg, De- 
cember 6, 1954. 

Customs convention on the temporary importation of pri- 
vate road vehicles. Done at New York June 4, 1954.' 
Signatures: Japan, December 2, 1954 ; Luxembourg, De- 
cember 6, 1954. 

Customs Tariff 

Protocol modifying the convention signed at Brussels 
July 5, 1890 (26 Stat. 1518) providing for formation of 
an International Union for the Publication of Customs 
Tariffs. Done at Brussels December 16, 1949. Entered 
into force May 5, 1950.^ 
Adherence deposited: Costa Rica, October 27, 1954. 

Southeast Asia Defense Treaty 

Southeast Asia collective defense treaty, and protocol. 
Signed at Manila September 8, 19.54.' 
Ratification deposited: Thailand, December 2, 1954. 


International telecommunication convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 1954.'' 

Ratifications deposited: Ethiopia, November 3, 1954; 
Pakistan, November 3, 1954. 

Trade and Commerce 

International convention to facilitate the importation of 
commercial samples and advertising material. Dated 
at Geneva November 7, 1952.' 

Accessions deposited: Switzerland, December 4, 1954 ; 
(vrith reservation) Spain, September 9, 1954. 

' Not in force. 

■ Not in force for the United States. 



a»'m«vii i'onvciillDii n'lHtlvc to troatiiiciit «t prisoners of 

war ; 
(Jfiu'vii coiirt'iitiori for aiiii'lloration of the condition of tlie 

woiuKJcd and slclc in armed forces in llie fleid ; 
Geneva convention for amelioration of tlie condition of 
wonnded, Kicl< and shipwro ke<i members of armed 
forces at sea ; 
Geneva convention relative to protection of civilian per- 
s<ms in time of war. 
Dated at Geneva August 12, 1949. Entered into force 

(K-tol)er 21, Ift.W.' 
Iliitiflriilion drimsitcd (with reservations) : Poland, No- 
vemlier 20, 19.'>4. 


European Coal and Steel Community 

AcriiMiiiMt b<>tw.cii llie I'liited States of America ami tlie 
l-;iirc'iM'aM Coal and Ste<'l ('oTiinmnity supplementing and 
ainendiMR llie loan aRreement dated April 2."5, 1954 (TXAS 
294.'")). SiRned at Luxembourg December 8, and at 
WashinRton December 16, 19.54. Entered into force De- 
cember 16, 19.''i4. 


Convention for the avoidance of double taxation with re- 
B|>e<'t to taxes on income. Signed at Washington July 
22, 1954. 

Entcrrd into force: December 20, 1954 (date of exchange 
of ratlQcations). 


Agreement relating to the loan by the United States of 
two submarines, the Barb (SS-220) and the Dace (SS- 
247), to Italy. Effected by exchange of notes at Wash- 
ington April 27, 1954. Entered into force April 27, 

Recent Releases 

For »nlr li/i the Superintendent of Documents, U.S. Gov- 
rrnnu-nt I'rinting Office, Waghinpton 2.5, D. C. Addreii.t 
reiiuintx direct in the Superintendent of Docutncntg, ex- 
cept in the caite of free publications, ichich may 'be ob- 
tained friim the Iteparlme/it of Stair. 

The Ccneral Agreement on Tariffs and Trade — Negotia- 
tions I'nder the Trade Agreement Act of 1934 as Amended 
and Extended. I'ub. 505.3. Commercial Policy Series 145. 
40 pp. L'0<?. 

Announcement by the Interdepartmental Committee on 
Trade Agreements of reciprocal tariff negotiations involv- 
ing .lapan, including notice of U.S. intention to negotiate, 
list of i)roducts to be considered, and notice of public 

I>ondon and Paris Agreements, September-October 1954. 
I'ub. rAV,'.). International Organization and Conference 
S<.rleH 11,5. 128 pp. 4r,i. 

A pampbl.'t which Includes the various agreed documents 
resulting from the NIne-I'ower Conference held at London 
from September 28 to October 3, the Conferences held at 
Inris October 20-23, and the transcript of the report 

' Not In force for the T'niteil States. 

made by the Secretary of State to the President and th 
Cabinet and the American people on October 25, 1954. 

Technical Cooperation — Rural Improvement Prograni 

TIAS 284:{. Pub. 5275. Ki pp. 10(. 

Agreement between the United States and Egypt — Signe 
at Cairo -March 19, 1953. Entered into force March 18 

Technical Cooperation — Program of Agriculture. TIAI 
2857. I'ub. 5298. 12 pp. lOif. 

Agreement betveeen the United States and Nicaragua 
superseding agreement of January 25 and February 1 
1950— Signed an Managua .lune 30, 1953. Entered int 
force .Tune 30, 1953. 

Trade-Mark Registration. TIAS 2860. Pub. 5305. 
pp. 5(*. 

Agreement between the United States and Denmarl 
Exchange of notes — Signed at Washington June 26 an 
October 1.5, 1953. Entered Into force October 15, 1953 
operative retroactively September 17, 1953. 

Regulation of Production and Marketing of Sugai 

TIAS 2Sti2. Pub. 5309. 7 pp. 10<?. 

Protocol between the United States and Other Goverr 
ments, prolonging the International Agreement of May > 
1937— Signed at London August 30, 1952. Operati\i 
September 1, 1952. 

Navigation, Transfer of Loran Stations in Newfoundlai 
to the Canadian Government. TIAS 2865. Pub. 5317. 
pp. 5(t. 

Agreement between the United States and Canada. B 
change of notes — Signed at Ottawa June 26 and 30, 195 
Entered into force June 30, 1953. 

Whaling, Amendments to the Schedule to the Interna 
tional Whaling Convention Signed at Washington Decen 
bcr 2, 1946. TIAS 2866. Pub. 5318. 5 pp. 5(f. 

Adopted at the Fifth Annual Meeting of the Internatioiu 
Whaling Commission London, June 1953. Entered int 
force October 8, 1953. 

Naval Mission to Chile. 

Agreement between the United States and Chile, extendi!) 
and amending agreement of February 1.5, 1951. Exchanf 
of notes — Signed at Washington October 6 and 26, 198 
Entered into force October 26, 1953. 

TIAS 2867. Pub. 5319. 3 p; 

TIAS 2868. Pol 

Defense, Military Facilities in Greece. 

5326. 11 pp. 10(J. 

Agreement between the United States and Greece — Signe 
at Athens October 12, 1953. Entered into force Octobt 

12, 1953. 

United States Air Force Mission to Cuba. TIAS 
I'ub. 5321. 4 pp. 5!*. 

Agreement between the United States and Cuba, extern 
ing agreement of December 22, 19.50, as extended. Ex 
change of notes — Signed at Wasliington July 7, Septen 
ber 21. and October 13, 1953. Entered into force Octoti 

13, 1953. 


TIAS 2872. Pub. 532' 

Air Force Mission to Honduras. 

2 pp. 5?*. 

Agreement between the United States and Honduras, eJ 
tending agreement of March 6, 19,50. Exchange of notes- 
Signed at Washington October 5 and November '2:^, 195; 
Entered into force November 23, 19.53. 

Department of Stale Bulleiii 

January 3, 1955 


Vol. XXXII, No. 810 

China and the Stakes In Asia (Jenkins) . 
Third Colombo Plan Report Released ....'!!" 
China. China and the Stakes in Asia (Jenkins) 
Commanism. China and the Stakes in Asia (Jenkins) 
Economic A£Fairs 

Income-Tax Convention With Federal Republic of Ger- 

Promoting the International Flow of" p'rivate Capital" 

Third Colombo Plan Report Released ! . . . . 


.Assembly Adopts Resolution on Morocco by Overwhelming 
Vote (statements and text of resolution) 

J.N Expresses Confidence in French-Tunisian Negotia- 
tions (statements and text of resolution) 

Hermany. Income-Tax Convention With Federal Republic 
or Germany 

wary. Release of Balloon Leaflets Over Hungary (text 
of U.S. note) ■^ ' 

of Balloon Leaflets 

ntemational Information. Release 
Over Hungary (text of D.S. note)' 

"'"Meetogs "'^""'""""^ »"•> Meetings. Calendar of 

lirael UN. Extends Mandate of Relief Agency for Pales- 
tine Refugees (statements and text of resolution) 
'^.rdan U.N Extends Mandate of Relief Agency for Pal- 
estine Refugees (statements and text of resolution) 

1 orocco. Assembly Adopts Resolution on Morocco by Over- 
whelming Vote (statements and text of resolution) 

Strategic Concept (DuUes) 

ilitary Affairs, 
utual Secnrity 

.rtb Atlantic Council Meets at Paris (statement and text 
ot communique) ..... 

rategic Concept (Dulles) . .' ' 

lird Colombo Plan Report Released" . ". 

Meets at Paris (statement and text'-of coZun^ueT 
"Tr:aty"(U"t'st:t''emTnt?"'.^^"^ ^^^°""'-« ^^ ^'- 

esidential Docaments. Nelson A. Rockefeller Appointed 
Special Assistant to the President . . ''Po^'^ea 

; rrent U.N. Documents 
.*:ent Releases . 

' "ReTie^A """'T' ''"""" ^-^^ ^''"■"'^^ Mandate of 

'It VrroiLf:;)'''^^."""^.''!^"^^^^ <.^^.^'"^"*^ ^'"^ 

' ""so^h'^tV r"'?w""- '"'* ^™'"^'^ "' Apartheid' in 
bouth Africa (Wadsworth) 

Treaty Information 

Current Actions . . 

'"*"^n7'' ^"''™°"»° With Federkl Republic of 6eT- ^ 

U.S. and Panama Complete Negotiations f;r kew ireaty ^ 
(joint statement) .... .^'ciiy 

Tunisia. U.N Expresses Confidence in" French^Tunls'ian 

Negotiations (statements and text of resolution) 3, 

United Kingdom (Cyprus). U.N. Cuts Off Discussion of 

Cyprus Question (statements and text of resolution) 3, 

United Nations 

Assembly Adopts Resolution on Morocco by Overwhelming 
Curre^nfDrm:^'^''"'*^^''''^^^^'"""^' • ' " ^S 

UN ''cut^Off n-*^"'^"' '° South" AfVick ("wadswo;th") ." H 
and text "j'^'^'Z,"' Cyprus Question (statements 
ana text of resolution) . 

U.N. Expresses Confidence in Fr'ench-iunisian ' Nego'tia^ 

UN r! *!,"'*'""''°''^°<^'«^t»f ^^^olution) . 30 

Refugees (statements and text of resolution) ... 24 

Name Index 
Dulles, Secretary 

Eisenhower, President ". '. ^' ^^ 

Jenkins, Alfred le S. . ^^ 

Lodge, Henry Cabot, Jr. " „„ ,? 

Rockefeller, Nelson A. . . ." '" 

Straus, Roger W. . . 

Wadsworth, James J. 

24, 30, 32 

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

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

Press release issued prior to December 20 which 
appears in this issue of the Bulletin is No. 722 
of December 17. 

Date Subject 

12/20 Reply to Hungary on balloon leaflets. 

12/21 Income-tax convention with Germany. 

12/21 Educational exchange. 

12/21 Dulles : NAC meeting. 

12/21 Agreement with Panama. 

12/21 Dulles: Strategic Concept. 

12/23 Return of naval craft by U.S.S.R. 


*Not printed. 

tHeld for a later issue of the Bulletin. 





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XXXII, No. 811 
nuary 10, 1955 

BALANCING THE BOOKS FOR 1954 • Statement by 

Secretary Dulles ••....•••.... 43 


by Ben H. Thibodeaux ....••••••••••••••• 45 


PEACE • Statement by A. M. Ade Johnson 58 


STANDARDS • Article by E. C. Crittenden 54 

For index see inside back cover 

'uperintcn'l"nt of Documents 

FEB 2 1955 

•»-«r.. o» •■ 

Me Q)e/ia^l^e7il c/ ^lu^e JOUilGllIl 

Vol. XXXII, No. 811 • Pubucation 5722 
January 10, 1955 

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Notes r'oiitents of this puMlcatlon are not 
ooiiyrithled uiil Items oontalne<I herein may 
be rrtirlnt»<l. riuilon of the IlirARTUKNT 
or Stati Di-LLETIN u the source will be 

rfw Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Government u-ith information on 
developments in the field of foreign 
relations and on the tcorfc of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
selected press releases on foreign pol- 
icy, issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as tcell as 
special articles on various phases of 
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and international agreements to 
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eral international interest. 

Publications of the Department, as 
tcell as legislative material in the field 
of international relations, are listed 

Balancing the Books for 1954 

News Conference Statement hy Secretary Duties 

Press release 741 dated December 31 

As we close the books for 1954, we can feel a 
measure of satisfaction. The year has had its dis- 
appointments and reverses. However, on net bal- 
ance, there has been substantial gain. Most of 
all this gain has been in the demonstrated capacity 
of the free nations to develop, cooperatively, their 
unity and strength. As a result, the danger of 
general war recedes. 

One setback has been the Indochina armistice, 
which reflected the military reverses of the French 
Union. But out of this setback there has come 
the Manila Pact, which, if adequately imple- 
mented, can limit the scope and consequences of 
the loss. 

Another setback was the defeat in France of the 
European Defense Community. But out of that 
has come the plan for Western European Union 
which reproduces much of the good contained in 
the Edc. This new plan has now been approved 
by the French Assembly in the face of unparal- 
leled pressure from the Soviet Communist bloc. 

Thus, when there has been adversity, the free 
world has shown a capacity to react to it. In 
addition, the free nations have solved, or are in 
a good way to solve, many highly controversial 
issues which threatened their unity. Among these 
matters may be mentioned the dispute between 
Italy and Yugoslavia about Trieste, the dispute 
oetween Britain and Egypt about the Suez Base, 
he oil dispute between Britain and Iran, and the 
lispute between France and Germany about the 

The North Atlantic Treaty Organization has 
idopted major decisions which, when imple- 
nented, will give it vastly increased defensive 

In this hemisphere, the American States, 
irough the Caracas declaration, have made a 
lomentous announcement with reference to intei^ 

national communism. This, as I have said, may 
serve the needs of our time as the Monroe Doc- 
trine served the needs of the last century. 

Vote by French Assembly on 
London and Paris Accords 

statement by Secretary Dulles 
Press release 737 dated December 30 

The news from France is good. The French 
Assembly voted to ratify the treaties which will 
carry into effect the accords reached last October 
in London and Paris.' The vote indicates that of 
all the parties only the Commmiist bloc of about 100 
deputies voted mechanically against all construc- 
tive measures. In the other parties there were 
differences, but they were differences of opinion 
as to how best to proceed to achieve Western 
European unity under conditions which would as- 
sure increased strength to protect national and 
individual freedom. It is understandable that these 
differences should have existed. The issues were 
both complicated and momentous. Now that the 
French Assembly has spoken, we can justifiably hope 
that the remaining ratification procedures in France 
and elsewhere will soon be concluded. 

A special tribute is due to those in France who 
saw that patriotism required the burying of age-old 
hostilities. That this could happen is a good augury 
for the years ahead. 

' For texts of the Final Act of the London Con- 
ference and of the agreements signed at Paris, see 
Bulletin of Oct. 11, 1954, p. 515, and Nov. 15, 1954, 
p. 719. 

In Iran and in Guatemala, Communist positions 
of strength have been vigorously erased. 

In the Middle East, the northern tier concept is 
taking form under the leadership of Turkey and 

anuary JO, 7955 


From 11 military standpoint the free nations con- 
tinue .strong iind have found the way to maintain 
and develop their strength consistently with their 
economic well-being. AVliat we call tlie "long 
haul" concept has been brought into application 
boUi in this country and in others which had been 
operating on emergency plans. 

In the Western Pacific, the security base has 
been ronniled out by the U.S. treaty with the Re- 
public of Korea and by the pending treaty with 
the Republic of China, as well as by the Manila 

Our relations with our allies are intimate and 
nuirked by mutual confidence born out of Presi- 
dent Eisenhower's "good partner" concept. 

The United Nations has this year shown in- 
creased vigor, and we have joined in entrusting to 
it the tiisk of obtaining the release of U.S. pris- 
oners of war wrongfully imprisoned by Commu- 
nist China in violation of the Korean Armistice 

Under the auspices of the United Nations, there 
is rapidly taking form the Eisenhower plan for 
using atomic energy to enrich and uplift all 

All of this enables us to face the new year with 
confidence. But we must beware of overconfi- 
dence. Hostile forces remain strong and implaca- 
ble and they are operating with even greater guile 
than heretofore. In the face of that undiminished 
power and guile we cannot e.xpect an unbroken 
series of successes. Indeed, we cannot hold our 
own, much less increase our net gain, unless we 
maintain our vigilance and our efforts on a basis 
of national unity. 

Peace will never be won if men reserve for war 
their greatest efforts. Peace, too, requires well- 
directed and sustained sacrificial endeavor. 
Given that, we can, I believe, achieve the great 
goal of our foreign policy, that of enabling our 
people to enjoy in peace the blessings of liberty. 

U.S. and U.K. Discuss Extension of 
Proving Ground for Guided Missiles 

Press release 733 dated December 30 

In 1950 an agreement was signed between the 
Government of the United Kingdom, with the 
concurrence of the Govermnent of the Bahamas, 
and the Government of the United States, to pro- 
vide for the establishment in the Bahamas of a 
long-range proving ground for guided missiles.^ 
The range has subsequently been operated in close 
and successful cooperation betw^een these Govern- 

The test range presently extends from Cape 
Canaveral southeast, through the Bahamas archi- 
pelago, with tracking stations on the islands of 
Grand Bahama, Eleuthera, San Salvador, Maya- 
guana, Grand Turk of the Turks and Caicos 
Islands, Dominican Republic, and Puerto Rico. 
These bases have all been constructed, except the 
latter two, which are under construction. 

The Air Force Missile Test Center, which 
operates the Florida Missile Test Range, is located 
at Patrick Air Force Base, Florida, and is one of 
the 10 centers of the Air Research and Develop- 
ment Command. The range is used to test guided 
missiles and pilotless aircraft for governmental 
agencies and contractors. 

Negotiations are now in progress to extend this 
range to the British territories of Saint Lucia in 
the Windward Islands and Ascension Island in the 
South Atlantic. In these negotiations, which it is 
hoped will play a valuable part in strengtheniiiu 
Western defense, effective steps will be taken ti 
safeguard the interests and safety of the inhabi- 
tants of the territories concerned and of civilian 
shipping and air commerce. 

' Bulletin of July 31, 1950, p. 191. 


Department of State 8u//ef/ij 

The American Farmer and Foreign Trade 

hy Ben H. Thibodeaux 

Director of the Office of Economic Defence and Trade Policy 

It IS a privilege for me to discuss with you a 
subject m which all of us in tlie United States 
have sucli a big stake. My subject is the foreign 
trade of the United States and the decisions that 
need to be made as to the course and magnitude 
of that trade. 

It^is a particular pleasure to discuss that topic 

at the annual meeting of the Farm Bureau Fed- 

; eration. The leadership of the Federation, with 

I that of our other great farm organizations, has 

^ been m tlie forefront in support of United States 

; toreip economic policies and operations that not 

1 )nly have benefited American agi-iculture and our 

I economy generally but also have served to 

strengthen our relations with other countries in 

, he free world. To cite one example, I gratefully 

recall how Allen Kline, James Patton, J T 

, zanders, and John Davis, each representing his 

I'wn organization, visited Europe as a team in 

I 950 at our invitation to appraise the food and 

gricultural program being conducted under the 

rarshall plan. Their participation in and sup- 

ort of that work contributed greatly to its 


Indeed, much of what I have to say today on our 
)reign trade is in keeping with the policies of 
le J^arm Bureau as stated in various forums bv 
5ur president, Mr. Kline, and as outlined in your 
solutions in the past. The support of trade 
:pansion by American farm groups is based upon 
^eir solid realization of its crucial importance 

the United States. 

<;niflcance of Foreign Trade 

Jhe significance of foreign trade to the United 
^ates cannot be judged from the coverall figure 

Address made before the American Farm Bureau Fed- 
« tion, New York, N. Y., on Dec. 13. 

Jiuary JO, 7955 

that only about 4 percent of our national income 
is derived from exports. The percentage figure 
reflects the tremendous size of our total economy 
rather than the significance of our foreign trade 
either to ourselves or to the rest of the world 

Actually the United States is the largest ex- 
porter m the world-and the largest importer as 
well. A number of countries are dependent upon 
us as their largest single source of supplies and 
their largest single market. This means that 
their economic welfare is highly dependent upon 
the demand for their products in the United 
tetates and the terms upon which their products 
may enter our markets. Our actions in the foreign 
trade field thus have a tremendous effect on the 
economies of these countries and determine to an 
important extent the level of living that their 
people can afi'ord. 

The percentage of our total national income de- 
rived from exports also hides the high dependence 
of many important sectors of our economy upon 
exports. Foremost among these is agriculture. 
In recent years we have exported approximately 
27 percent of our cotton, 30 percent of our wheat, 
53 percent of our rice, and 24 percent of our to- 
bacco. More than one-fifth of each of a number of 
agricultural products finds its way into export out- 
lets. An estimated 55 million acres of farm land 
were used in the production of commodities for 
export in 1951. 

On the industrial side, likewise, one-fifth or 
more of various types of machinery is exported; 
included are steel-mill equipment, tractoi-s, com- 
bines, and textile machinery. More than 15 per- 
cent of our lubricating oils, motor trucks, insecti- 
cides, and printing equipment are exported. 

A sharp decline in our exports affects not only 
the industries directly concerned. It may also 
produce a chain reaction that penetrates deeply 


and danpcrouslv into our economy. A sharp drop 
in cotton exports that results in reduced farm in- 
comes is immediately felt by sellers of automobiles, 
refriperators. farm machinery, and fertilizers in 
the South. Similarly, a cutback in industrial ex- 
ports and consequent material unemployment in 
exjwrt industries becomes reflected in a reduced 
demand for farm products. "We frequently hear 
the argument that imports may cavise unemploy- 
ment We should not forget the other side of the 
coin, and that is, a fall in exports also results in 
unemployment and idle resources. 

I repeat, then, that we have a high stake in the 
foreign trade of the United States. It is one of 
the essential elements in the economic welfare of 
ourselves and of the free world. 

There are many facets of our foreign trade that 
invite discussion. I should like to deal with t'vo 
of them. One is the so-called dollar problem and 
tJie questions relating to it. The other is the work 
that we are doing with other countries in a cooper- 
ative effort to expand world trade for the benefit 
of all. 

The Dollar Problem 

Ijet us examine briefly the nature and signifi- 
cance of the so-called dollar problem. 

Our domestic producer expects to be paid in dol- 
lai-s for his products, including the part that may 
be exported. The foreigner who might need these 
I)roducts frequently has been unable to obtain the 
dollars required for their purchase. In these con- 
ditions, there is no sale. If these circumstances 
are multiplied by a few million producers in the 
United States and millions of would-be consumers 
abroad, the result is mounting domestic surpluses 
and the problem of what to do about them. Un- 
fortunately we have encountered these conditions 
much too frequently. 

Tlie dollar shortage abroad has been greatly 
eased in the last 2 years. A balance of payments 
was achieved between the United States and the 
rest of the world both in 10.53 and 1954. Gold re- 
serves and dollar holdings of foreign countries 
(excluding the U. S. S. R.) amounted to $27.4 bil- 
lion at mid-19r)4— an increase of nearly $5 billion 
compared with 2 years earlier. These conditions 
have enable«l the rest of the world to buy more of 
our proilucf.s. An increase in our exports this 
spring and early summer was one of the factors 


that cliecked the decline in United States pro- 

The ability of foreign countries to buy from 
us must be sustained and increased. The progi-ess 
that has been made must be safeguarded and im- 
proved. We are entering a competitive era in 
world trade. Unless the countries of the world 
can earn sufficient dollars to buy our products, 
however, we shall be in a poor position to compete. 
We would again have the dollar problem in full 

The reason for dollar shortages abroad is simply 
stated. We have been exporting much more than 
we have imported, and we have been heavily sur- 
plus in our balance of payments with the rest of 
the world. The phenomenon is not new. It arose 
in serious proportions following World War I, 
when we emerged as a creditor nation and with 
a continuing net surplus in our accounts with other 
countries. These conditions persisted through the 
1930's and became particularly acute immediately 
following World War II. 

For foreign countries dollar scarcities fi'e- 
quently have meant economic distress because of 
inability to obtain sufficient food, raw materials, 
machinery, fuel, or other items essential for eco- 
nomic activity and the maintenance of living 
standards at reasonable levels. Particularly was 
this true in the immediate postwar period. Eco- 
nomic distress in turn has frequently engendered 
public unrest, political instability, and a sense ol 
resentment that dire want should prevail in some 
countries simultaneously with the existence of 
burdensome surpluses in others. Economic weak- 
ness has also impaired the ability of countries tc 
combat communism and to prepare their defense,' 
against aggression. These circumstances havi 
served to set the stage for Communist exploitatioi 
and the propaganda reiteration of the hackneyec 
Marxian theme, now about 100 years old, that thf 
capitalistic system is on the verge of falling apart 

Dollar shortages abroad have directly threat 
ened our own economy. Because of limited abil 
ity to buy from us, foreign countries have severely 
restricted their imports of American goods h} 
means of quotas, embargoes, and exchange restric 
tions. They did without our gootls when the} 
could. Nondollar supplies were sought even a 
relatively high prices in the currencies availabli 
to the importing country. A pronounced treiu 
developed toward national self-sufficiency 

Department of State Bulletir 

prompted in part by fears of war and by pro- 
tectionism, but also because of limited foreign ex- 
change. 1 need not elaborate to this group that 
a continuation of these practices would perma- 
nently impair our export markets, to the detriment 
of our domestic producers. 

The dollar problem assumed crisis proportions 
following World War II, when the vast demands 
tor food and reconstruction material had to be 
supplied largely from the United States. The 
gold and dollar reserves of the war-ravaged coun- 
tries were near exhaustion, and the means of 
earning dollars to pay for needed supplies were 
inadequate or nonexistent. Had we hesitated, eco- 
nomic and hence political chaos might have re- 
sulted and the Kremlin might have absorbed more 
)t i.urope than it now has under its phony pigeon 

iVing. ^ i a 

The United States met the challenge, throu-h 
•he Marshall plan and in other ways, with grants 
md loans that amounted to $32 billion during the 
)enod 1946-53. An additional $10 billion was 
upphed during that period in the form of grants 
'f military supplies and services. The results 
'f that aid are well known. Production and trade 
evels in the Marshall plan countries are now ma- 
erially higher than prewar, and Western Europe 
; sohdiy entrenched in a system of economic 
trength, freedom, and democracy that it is pre- 
•ared to defend. Progress is being made in other 
arts of the world, although conditions still exist 
articularly m underdeveloped areas, that may re- 
uire special attention. 
As I indicated earlier, the rest of the world was 
pproxnnately in balance of payments with the 
Jnited States in each of the last 2 years, and 
^reign holdings of gold and dollars have increased 
J comfortable levels. The position admittedly 
■' not stable as yet. The balance in our current 
:;counts with other countries is partly explained 
y continued restrictions on dollar imports, and 
icreased dollar reserves abroad have been made 
ossible largely by liuge United States expendi- 
,ires for foreign economic aid and military sup- 
Jrt. These are important qualifications. None- 
*less, given the improvement that has occurred 
id the consequent reduction in our foreign aid, 
e time has come for a decision in the United 
;ates as to the future course of our foreign trade 
)hcy and business relations with the rest of the 

■ noory 10, 1955 

Possible Alternatives 

In making a decision as to our trade policy, 
three alternatives present themselves : 

1. Continue to supply dollars through our eco- 
nomic aid programs to enable the rest of the world 
to buy more commodities from us, or simply give 
the commodities away; 

2. Curtail our production to domestic needs and 
an effective foreign demand within circumscribed 
limits ; 

3. Aggressively seek to expand international 
trade on a mutually profitable and equitable basis 
thereby enabling other countries to earn more dol- 
lars to spend in our markets and to meet payments 
on American investments needed for their eco- 
nomic development. 

The first two alternatives may have to be used 
to some degree in coping with emergency situa- 
tions. I thinlc you will agi-ee, however, that they 
do not represent desirable long-term solutions 
either for us or for the other nations of the free 
world. The first alternative imposes a staggering 
burden on the American taxpayer and would be 
resisted by foreign countries desirous of employ- 
ing their labor and resources to earn dollars by 
trade instead of having to solicit gifts or loans. 
Under the second alternative, even assuming that 
the necessary adjustments might be made wfthout 
excessive cost and decreased domestic levels of liv- 
ing, our allies would be deprived of goods that 
they need. This would weaken their economies 
and their ties Ts-ith us and push them toward the 
Soviet bloc in search of trade. 

By all measures, including our domestic wel- 
fare as well as the strengthening of our foreign 
economic and security relations, the third alter- 
native — that of expanding international trade to 
the highest possible level— is the soundest solution 
consistent with the best long-term interests of the 
United States. It is the commonsense course 
which gives recognition to the simple fact that, if 
we wish to sell abroad, we must also buy abroad. 
It is the course that enables the fullest and most 
efficient use of our resources and those of the other 
free countries. By contributing to mutually bene- 
ficial exchanges of goods, services, and investments, 
it also provides a solid support for our political 
relations with friendly countries and for their 
effective participation in the common defense 
against Communist encroachments. 


Expansion of World Trade 

I sliould like now to discuss work that is in 
progress in keeping; with the objective of expand- 
ing world trade. I shall address myself specifi- 
cally to the measures being taken for the removal 
of trade restrictions. 

The President is authorized to negotiate tariffs 
with other countries under the terms of the Trade 
Agreements Act. This act is due to expire on 
June 12, 1955. Failure to obtain its renewal in 
Congress would mean that tariff negotiations with 
other countries as at present would come to an end. 
The President proposes, however, to request con- 
gressional action on this legislation, as indicated 
in his letter of November 8, 1954, to Assistant 
Secretary of State Waugh, which reads in part 
as follows : ^ 

Based upon ... a review in the United States, I 
recommended in March of this year a program for ex- 
panding international trade and overseas investment, for 
promoting currency convertibility, and for reducing the 
need for economic aid. Some portions of this program 
have already been put into effect. The remaining parts, 
especially the heart of the program — extension and 
amendment of our Trade Agreements Act — will, as you 
know, be pressed at the session of the Congress which 
begins in January, and I look forward to early action. 

That program envisages United States participation in 
a multilateral approach to tariffs and trade. The General 
Agreement [on Tariffs and Trade] has made a useful con- 
tribution to the postwar recovery and restoration of the 
economic vitality of the free world. 

Under the Trade Agreements Act, bilateral 
agreements were negotiated with 29 countries 
from 1934 onward. These agreements were highly 
useful in helping cure the paralysis in world trade 
resulting from the depression of the early 1930's. 
Bilateral trade arrangements, however, are cum- 
bersome and have the obvious disadvantage of de- 
fining trade chamiels too narrowly. 

Beginning in 1947 the United States joined with 
33 other countries in multilateral tariff and related 
negotiations under a set of rules called the General 
Agreement on Tariffs and Trade (Gatt). These 
countries account for about 80 percent of world 
trade. The Gatt is deservedly given credit for a 
substantial reduction in barriers to international 
trade and for a period of stability in tariff's un- 
precedented since before World War I. 

Negotiations with the other countries in the 

Gati' are now in progress at Geneva,^ for the 
purpose of (a) clarifying and strengthening the 
rules of good behavior in international trade 
among the Gatt partners and (b) obtaining 
agreement on a constitution for an effective organ- 
ization to administer the Gatt. It is planned to 
submit this organization constitution to the Con- 
gress for approval. The delegation representing 
the United States in these negotiations at Geneva 
comprises not only Government officials but also 
a bipartisan congressional group and public 

The trading rules of the Gatt, formulated in 
1947, were highly flavored by the difficult economic 
conditions of the immediate postwar period. 
These conditions, fortunately, are vastly amelio- 
rated, as I explained earlier, and there is need now 
to modify the Gatt rules accordingly. 

Restrictions on American Exports 

There are a number of improvements that wt 
seek in the trading rules of the Gatt. Foremost; 
among these are stricter rules against the imposi-i 
tion of restrictions against imports of Americar; 
commodities. Many foreign coimtries continue tc 
discriminate against American imports for finan- 
cial reasons. The dollar problem continues tc 
plague us, as it has in the past. Import quotas anc 
exchange restrictions against dollar imports art 
still widespread. AVe are pressing for the elimi 
nation of these restrictions, however, by countrie; 
that have accumulated reasonably adequate I'e 
serves of gold and dollars in relation to their cur 
rent imports from the dollar area. Considerabh 
pi'ogress has been made. Greece is now entirely 
free of such restrictions. Important relaxation.- 
have been made by Germany, the United Kingdom 
Sweden, Benelux, Switzerland, Italy, and others 
It is our view that faster progress can be made 
however, and we are pushing for it. 

Our efforts are meeting with strong resistanci 
from other countries. The resistance stems fron 
a fear that protectionism and import restriction: 
in the United States will make it difficult for othd 
countries to continue to earn dollars by tradu 
They fear that an overly rapid removal of restric 

' Bulletin of Nov. 22, 1!).'54, p. 774. 

' For an announcement of the U.S. delegation, see ihid. 
Nov. 8, 195-1, p. 711 ; for a statement at Geneva on Nov. li 
by Assistant Secretary Waugh, chairman of the U.S 
delegation, see ihid., Nov. 22, 1954, p. 772. 


Department of Slate Bulletin 

tions against dollar imports would deplete re- 
serves that have been built up largely by self-de- 
nial of imports. The attitude is to play safe and 
to maintain "rainy day" reserves until there is 
positive indication that the United States is ready 
and willing to let down its own barriers against 
imports and thereby enable other countries to eai'n 
dollars which in turn could be spent more freely 
in our markets. 

Wliether we like it or not — and we do not — there 
is distrust abroad as to our commercial policy in- 
tentions. A major objective in our aid operations 
abroad has been to induce foreigners to increase 
their productivity, to adapt their products to the 
American market, and to earn their own dollars in 
order to relieve the American taxpayer of the aid 
burden. A number of countries have done pre- 
cisely that. Still officials and businessmen from 
these countries report that they become confused 
and frustrated when their efforts to earn dollars 
are made difficult or impossible by our import re- 
strictions, including : 

1. The Buy American Act. The rejection of 
foreign bids much below the lowest domestic bid 
has created high concern abroad, particularly 
when similar items are not permitted to be shipped 
to the Soviet bloc for security reasons ; 

2. An invocation of the escape clause of our 
Tariff Act and the imposition of import quotas 
or increased tariff" fees at the first sign of foreign 
competition in a country that prides itself on its 
freely competitive system; 

3. Tariff's which in many cases are considered 
prohibitive; and 

4. Customs procedures that are frequently so 
complex, uncertain, and time-consuming as to dis- 
courage even the hardiest potential seller in the 
American market. 

In seeking the elimination by other countries 
of their restrictions against American exports, we 
sometimes find ourselves in the weak bargaining 
position of having to insist that our own import 
restrictions must be maintained. Under section 22 
of our Agricidtural Adjustment Act, as amended, 
for example, the importation of an agricultural 
conmaodity may be reduced to 50 percent of im- 
ports during a past period, and duties may be 
levied up to 50 percent of the unit value of the 
commodity if its importation injures or threatens 
to interfere with a domestic agi-icultural program. 

January 10, 1955 

It is recognized in other countries that the Amer- 
ican taxpayer should not be asked to subsidize 
imports of commodities attracted by our high sup- 
port prices. There is also appreciation abroad 
that our cutbacks of imports under section 22 have 
been moderate. Foreign suppliers are afraid, 
however, tliat our future actions could be less mod- 
erate. These fears would be dispelled if it were 
possible for us to agree that our restrictions under 
section 22 would not be below the volume of im- 
ports that would have occurred in the absence of 
a domestic support program. 

There is also deep concern abroad lest our agri- 
cultural surplus disposals and export subsidies 
disrupt world prices and pre-empt markets nor- 
mally supplied in part by other countries. The 
foreign producer realizes full well that he is unable 
to compete with the United States Treasury. 
Here too, however, there is appreciation of the 
moderation with which these programs have 
been administered. Continued consultation with 
friendly countries likely to be affected by our 
actions would dispel the uncertainty as to our 
intentions. So would our adherence to a policy 
that our subsidies on export commodities sliould 
not be at such a level as to pre-empt more than 
our equitable share of the world market. 

Trade restrictive measures are not unique with 
the United States, as I indicated earlier. Various 
countries employ a formidable array of restrictive 
devices against our exports. Many are purely pro- 
tectionist. But no one country is willing to relax 
these measures or to lower its tariffs unless its 
trading partners also agree to take sucli measures. 
That is the challenge and the opportunity in the 
multilateral negotiations under the Gait and in 
our trade relations with the free world generally. 

The United States must accept the challenge. 
In international trade the United States simply 
cannot "go it alone." In its own best interests it 
must exercise its leadership in pushing for effec- 
tive international cooperation toward the goal of 
trade expansion. For, as President Eisenhower 
said in his message of March 30, 1954, to the 

If we fail in our trade policy, we may fail in all. 

Our domestic employment, our standard of living, our 

security, and the solidarity of the free world— all are 

' Hid., Apr. 19, 1954, p. 602. 


Procedures for Administering 
Buy American Act 

Wblt« Bouw pren reletue dated December IT 

Th« President on December 17 issued an Exec- 
utive order establishing uniform standards and 
procedures to be a|)plied in administering the Buy 
American Act. The order is designed to bring 
about the greatest possible uniformity among ex- 
ecutive agencies applying the basic legislation. 
The Buy American Act, which became law in 
19.33, provides that preference in the award of 
government contracts shall be given to domestic 
suppliers, as against foreign suppliers, unless the 
domestic supplier's bid or offered price is un- 
reasonable or the award to him would be incon- 
sistent with the public interest. 

Two methods are provided in the order for 
determining whether the domestic supplier's bid 
or offered price is unreasonable. The head of 
each agency will select the method better suited to 
the procurement procedures of his agency. Un- 
der the first method the bid or offered price of a 
domestic supplier will be deemed unreasonable if 
it is greater than 10(1 percent of the bid or offered 
price of the foreign bidder (including applicable 
duty and costs incurred after arrival in the Ignited 

lender the alternative method the domestic price 
will be deemed unreasonable if it exceeds the 
sum of (1) tlie foreign bid or offered price (in- 
cluding applicable duty and costs incurred after 
arrival in the United States) and (2) 10 percent 
of such bid exclusive of such duty and costs. 
When the price amounts to less than $25,000, in 
the interests of administrative simplicity only the 
applicable duty need be excluded from the bid 
or offered price in making a determination under 
this .second method. 

The order provides exceptions permitting 
agency heads to retain their authority or responsi- 
bility to place a fair jn-oportion of their total 
purchases with small business concerns, and to 
reject any bid or offer for security reasons or be- 
cause it would be in the national interest to do so. 

The order also permits rejection of a foreign 
bid or offer in any situation in which the domestic 
low bidder would juoduce substantially all of the 
materials in areas of substantial uncmjiloyment as 
determined by the Secretary of Lalior after a de- 
termination by the President that such preference 
woidd be in the national interest. In issuing the 


Executive order the President announced that he 
had made a determination that it is at this time 
in the national interest to give a preference to 
United States low bidders who will produce sub- 
stantiall}' all of the materials contracted for in 
labor-surplus areas. 

"Wlierever the liead of an executive agency pro- 
posing to purchase domestic materials determines 
that a greater differential than that provided in 
the order is not unreasonable or is not inconsistent 
with the public interest, he is authorized to do so 
by the order and thereafter to submit a written 
report of the facts in the case to the President. 

Executive Order 105821 

Pbescribing Uniform Pbocedures for Certai:^ Determi- 
nations Under the Buy-American Act 

Whereas in the administration of the act of March 3, 
193.3, 47 Stat. 1520, 41 U. S. C. lOa-lOc ; 41 U. S. C. lOd, 
commonly known as the Buy-Ainprican Act, and other 
laws requiring the application of the Buy-American Act, 
the heads of executive agencies are required to deter- 
mine, as a condition precedent to the purchase by their 
agencies of materials of foreign origin for public use 
within the United States, (a) that the price of like ma- 
terials of domestic origin is unreasonable, or (b) that 
the purchase of like materials of domestic origin is incon- 
sistent with the public interest ; and 

Whereas it is desirable and in the public interest that 
such determinations be made on as uniform a basis as 
possible : 

Now, THEREFORE, by vlrtue of the authority vested in 
me as President of the United States, it is hereby ordered 
as follows : 

Section 1. As used in this order, (a) the term "mate- 
rials" includes articles and supplies, (b) the term "execu- 
tive agency" includes executive department, indepeudent 
establishment, and other instrumentality of the executive 
branch of the Government, aud (c) the term "bid or of- 
fered price of materials of foreign origin" means the bid 
or offered iiriee of such materials delivered at the place 
specified in the invitation to bid including applicable duty 
and all costs incurretl after arrival in the United States. 

Sec. 2. (a) For the purposes of this order materials 
shall he considered to be of foreign origin if the cost 
of the foreign products used in such materials constitutes 
fifty per centum or more of the cost of all the products 
used in such materials. 

(b) For the puriHJses of the said act of March 3, 1933 
and the other laws referred to in the first paragraph of 
the preamble of this order, the bid or offered price of mate- 
rials of domestic origin shall be deemed to be unreason- 
able, or the purchase of such materials shall be deemed 
to be inconsistent with the public interest, if the bid oi 
offered price thereof exceeds the sum of the bid or of 

' 19 Fed. Reg. 8723. 

Department of State Bulletin 

ered price of like materials of foreign origin and a dlffer- 
intial computed as provided in subsection (c) of this 

(c) The executive agency concerned shall in each in- 
tance determine the amount of the differential referred 
o in subsection (b) of this section on the basis of one of 
he following-described formulas, subject to the terms 
hereof : 

(1) The sum determined by computing six per centum 
if the bid or offered price of materials of foreign origin. 

(2) The sum determined by computing ten per centum 
if the bid or offered price of materials of foreign origin 
xclusive of applicable duty and all costs Incurred after 
rrival in the United States : provided that when the bid 
T offered price of materials of foreign origin amounts 
less than $25,000, the sum shall be determined by com- 
luting ten per centum of such price exclusive only of 
pplicable duty. 

Sec. 3. Nothing in this order shall affect the authority 
ir responsibility of an executive agency : 

(a) To reject any bid or offer for reasons of the national 
nterest not described or referred to in this order ; or 

(b) To place a fair proportion of the total purchases 
rith small business concerns in accordance with section 
102 (b) of the Federal Property and Administrative Serv- 
ces Act of 1949, as amended, section 2 (b) of the Armed 
services Procurement Act of 1947, as amended, and .sec- 
ion 202 of the Small Business Act of 1953 ; or 

(c) To reject a bid or offer to furnish materials of 
oreign origin in any situation in which the domestic sup- 
)lier offering the lowest price for furnishing the desired 
aaterials undertakes to produce substantially all of such 
naterials in areas of substantial unemployment, as deter- 
nined by the Secretary of Labor in accordance with such 
ippropriate regulations as he may establi-sh and during 
luch period as the President may determine that it is in 
he national interest to provide to such areas preference 
n the award of Government contracts : 

Provided, that nothing in this section shall prevent the 
•ejection of a bid or offered price which is excessive ; or 

(d) To reject any bid or offer for materials of foreign 
)rigin if such rejection is necessary to protect essential 
lational-security interests after receiving advice with re- 
pect thereto from the President or from any officer of the 
Jovernment designated by the President to furnish such 

Sec. 4. The head of each executive agency shall issue 
uch regulations as may be necessary to insure that pro- 
urement practices under his jurisdiction conform to the 
revisions of this order. 

Sec. 5. This order shall apply only to contracts entered 
ito after the date hereof. In any case in which the head 
f an executive agency proposing to purchase domestic 
aterials determines that a greater differential than that 
rovided in this order between the cost of such materials 
' domestic origin and materials of foreign origin is not 
ireasonable or that the purchase of materials of domestic 
igin is not inconsistent with the public interest, this 
der shall not apply. A written report of the facts of 

each case in which such a determination is made shall be 
submitted to the President through the Director of the 
Bureau of the Budget by the official making the determi- 
nation within 30 days thereafter. 

The White House, 
December 17, 195^. 

Schedule of Fees on Munitions 
Shipments Not in Force Until April 

Press release 735 dated December 30 

A schedule of fees for the licensing of mu- 
nitions imports and exports, planned to be 
effective January 1, 1955/ will not be in force 
until April 1, 1955. The change is made to allow 
more time for the public to express itself on the 
proposed schedule. 

The schedule of fees provides for a variable 
charge based on the licensed shipment ranging 
from $1 for a licensed shipment of $100 to $80 for 
a licensed shipment of $100,000 and over. No 
charge is made for licenses covering shipments 
amoimting to less than $100 in value. 

Direct Defense Support for 
Laos, Cambodia, and Viet-Nam 

Press release 739 dated December 31 

Arrangements have been completed so that on 
January 1, 1955, the United States can begin 
supplying financial aid directly to the Govern- 
ments of Viet-Nam, Cambodia, and Laos for the 
purpose of strengthening their defense against the 
threat of Conmiunist subversion and aggression. 
This direct aid reaffirms the independent status 
these Governments now possess, and is in addition 
to the economic aid that has been given directly 
to these three states by the United States since 
1950. The aid will be given pursuant to section 
121 of the Mutual Security Act of 1954, which 
provides for "the furnishing, as far as possible, of 
direct assistance to the Associated States of Cam- 
bodia, Laos and Viet-Nam . . . ." The provision 
of U.S. aid directly to these Governments was 
confirmed by the communique issued at "Wash- 
ington on September 29 of this year,= following 

' BiTLLETiN of Dec. 13, 1954, p. 917. 
= Bulletin of Oct. 11, 1954, p. 534. 

inoary 10, J955 


talks between representatives of the United States, 
FnuK-e, and the Chiefs of Mission of the three 
Associated States and by letters from President 
Eisenhower to the King of Cambodia' and to 
President Diem of Viet-Nam.* 

Return of Lend-Lease Vessels 

Prt-fls ri'lPOKC 729 dntpd DcccmliiT 23 

The Soviet Government has agreed on the dates 
and procedures for the return to U.S. control of 
27 small naval craft loaned to the Soviet Union 
under lend-lease during World War II. The 27 
craft, consisting of 4 submarine chasers, 8 motor 
torpedo boats, and 15 landing craft (infantry), 
are to be turned over to U.S. Navy representatives 
at the port of Maizuru, Japan, during the months 
of June and July 1955. 

These craft are part of a group of 18G naval 
craft, the return of which the United States first 
requested on September 3, 1948. The Soviet Gov- 
ernment agreed to return the 18G craft on October 
20, 1953, and on December 28, 1953, representa- 
tives of the two Governments began to work out 
the necessary details for the return of the craft.' 
In May and June 38 naval craft, consisting of 12 
motor torpedo boats and 26 submarine chasers, 
were returned to U.S. Navy control at the port of 
Istanbul, Turkey." 

Discussions are continuing on the ports, dates, 
and procedures for the return of the other 121 
naval craft. 

Rejection of Higher Duties on 
Screen-Printed Silk Scarves 

Whllo IIiiUBc press release dated December 23 

The President on December 23 declined to ac- 
cept the recommendations of the U.S. Tariff Com- 
mission for an in the duty on imports of 
screen-printed silk scarves. 

The Tariff Commi.ssion's investigation into 
8creen-i)rinted silk scarves was made pursuant to 
section 7 of the Trade Agreements Extension Act. 
The Tariff Conunission's original investigation 

• Ibid., Oct 25, 1954, p. 615. 

* lliiii., Nov. IT), m.'il, p. T.i-t. 
' Ihid., .Inn 11, 1!).-.!, p. 44. 
'Ibid., Apr. IL', l!).",!, p. 563. 

and report were augmented by a supplemental in- 
vestigation and rej^ort made at the President's 

The President, in identical letters to Senator 
Eugene D. Millikin, Chairman of the Senate Fi- 
nance Committee, and Representative Daniel A. 
Eeed, Chairman of the House Ways and Means 
Committee, stated that he had serious question as 
to the need for the proposed action and as to its 
probable efficacy. 

Text of President's Letter 

Dear Mr. Chairman : I have now completed my 
study of the Tariff Commission's supplemental re- 
port on its escape clause investigation relating to 
screen-printed silk scarves. In its original report 
the Commission recommended an increase in the 
duty on imports of these scarves, but certain ques- 
tions led me to return the report to the Conunis- 
sion with the request that it make a further care- 
ful examination of the case. 

From the beginning, one of the dominant prob- 
lems of this case has been an unusual difficulty in 
ascertaining whether serious injury from imports 
could be clearly established. Many differing and 
varied operations are involved in the domestic 
manufacture of screen-printed silk scarves. Man- 
ager-jobbers, whose fii'ms are known in the trade 
as "scarf houses," estimate market possibilities and 
detei'mine what shall be made and where, import- 
ing finished scarves or contracting to have scarve> 
made domestically from their oM'n cloth. Also in- 
volved are the domestic screen-printers, cutter.'^ 
and hemmers who work under contract from tlu' 
scarf houses, some of whom specialize in work 011 

The manager- jobbers claim no injury and seek 
no tariff relief. To a greater extent than they for- 
merly did, they are today relying upon importa- 
tion rather than domestic manufacture to meet 
their needs. Furthermore, they handle other ar 
tides as well as scarves and consequently, altliougl 
sales of all screen-printed silk scarves bj- thirty 
one representative iirms declined between 1952 am 
1953, manager-jobbers' sales of other kinds o 
scarves, other neckwear and accessories increase! 
more than enough to offset the decline in the sal' 
of screen-printed silk scarves. 

' Copies of the Tariff Commission's reports may be ol 
taioed from the U.S. Tariff Commission, 'Washington 2' 
D. 0. 


Department of State Bulletli 

The substantial decline in domestic production 
of screen-printed silk scarves has pi'esented a dif- 
ferent problem for the screen-printers, cutters and 
hemmers, however. But with little adaptation 
each of these operations can be employed in the 
production of articles other than scarves. The 
screen-printers' skills are also utilized in the man- 
ufacture of dress fabrics, men's ties and drapery 

Services performed by cutters and hemmers in 
the manufacture of screen-printed scarves are 
also used elsewhere, for example in the manufac- 
ture of other neckwear, blouses, and accessories. 
In the ladies' wear industry centering around New 
York City it is conmionplace for plant operators 
and employees alike to shift with a high degi-ee 
of mobility from the manufacture of one article 
to another. Under the circumstances, therefore, 
although it is clear that domestic scarf pro- 
" duction has declined, it is not clear that serious 
injury has resulted. 

Another important question in this case relates 
to the effect that a tariff increase would produce. 
It might well just reduce imports or increase their 
cost without appreciably improving the market 
for domestic scarves. And with fashion playing 
a large role in determining the size of the total 
market for scarves, it becomes especially problema- 
! tical to say what the net result of a tariff increase 
I might be. Sales of scarves from all sources are in 
a general decline. Scarf imports were lower in 
1953 than in 1952 and during the first nine months 
af 1954 a further 30% decline occurred. 

A new factor which may appreciably influence 
the silk scarf import situation is the Flammable 
Fabrics Act which became effective last July. This 
measure was enacted to prevent interstate com- 

merce in highly flammable fabrics and articles. It 
prohibits trade in wearing apparel, including 
scarves, which cannot pass a prescribed test of 
flammability. The full effect of this Act on im- 
ports of silk scarves is somewhat difficult to meas- 
ure because the law has been in effect for such a 
short time. Present indications are that substan- 
tial quantities of the thinner scarves, which are 
also the cheapest, are failing to pass the standards 
imposed by the Act for shipments in interstate 
commerce. If these preliminary indications are 
borne out by greater experience, the scarves that 
do meet the test of the law will be the heavier, 
higher-priced scarves in the production and sale 
of which domestic manufacturers enjoy their 
greatest success. 

My review of all of these factors leaves with me 
serious questions as to the need for the proposed 
action and as to its probable efficacy. Scarves are 
an important Japanese export specialty and it is 
Japan's trade that would be mainly affected by an 
increase in the tariff on imported scarves. A 
stronger and more stable Japanese economy is of 
major importance to Japan and to the free world. 
Our current efforts to expand Japan's trading op- 
portunities by inducing other countries to join us 
in lowering trade barriers against Japanese goods 
is an important link in our over-all security effort. 
Restrictive action which would affect mainly a 
Japanese product would be warranted at this time, 
therefore, only if it were clearly and uimaistakably 

In the light of all these aspects of the case, I 
have decided not to take any action to increase the 
tariff on imports of screen-printed silk scarves. 

DwiGHT D. Eisenhower 

[January 10, 1955 




Preservation of International Metric Standards 


by E. C. Crittenden 

Continuing a series begun in 1889, the Tenth 
General Conference on Weights and Measures was 
held at Paris and Sevres, France, October 5 to 14, 
1954. Of 35 coinitries belonging to the interna- 
tional organization, 32 sent delegates or observers, 
the total number being more than 70. As repre- 
sentatives of the United States the Department of 
State appointed Dr. Allen V. Astin, director of 
the National Bureau of Standards, and Dr. E. C. 
Crittenden, consultant to the Bureau. 

These General Conferences, which are convened 
at 6-year intervals, exercise general authority over 
a pennanent International Committee on Weights 
and Measures of 18 members, which meets each 2 
years. The Conmiittee is responsible for directing 
all projects in metrology which the member coun- 
tries decide to undertake jointly, including the 
preservation of the international metric standards 
and other activities of the International Bureau 
of AVeights and Measures. 

The Bureau, with a staff of about 16 persons, is 
housed at Si^vres in the Pavilion de Breteuil, an 
ancient residence dedicated as international terri- 
tory. ]5esides providing a depository for inter- 
national standards it carries on important re- 
searches on many metrological i^roblems, calibrates 
standards for other laboratories, both national and 
privately owned, and serves as a permanent secre- 
tariat for the International Committee and the 
(leneral Conferences on Weights and Measures. 

Problems of measurement have become so diverse 
that no single small group of men can deal with 
them. Consequently, to assist the International 
Committee on Weights and Measures in special 
fields four advi.sory committees have been set up. 

Each of these committees includes representatives 
of seven or eight national laboratories and some 
experts selected individually from smaller coun- 
tries. The present advisory committees cover 
measurements and standards in electricity, in pho- 
tometry, and in thermometry, and the project for 
a new definition of the meter. 

Many countries which belong to the interna- 
tional weights and measures organization do not 
have representatives in the permanent commit- 
tees. Consequently, one of the purposes served by 
each General Conference is to inform member 
countries of the progress made during the preced- 
ing 6-year interval. The Conferences make deci- 
sions on matters of principle and on changes of 
policy or practice. 

Reports on Work of Bureau 

Current work of the International Bureau was 
reported to the Conference by the director, Charles 
Volet, and by various members of his staff. One 
phase of their review dealt with comparisons of 
electrical and photometric standards from all of 
the larger countries, showing a very satisfactory 
degree of uniformity in the new electrical units, 
as adopted in 1948, and good progi'ess toward uni- 
formity of photometric measurements on all types 
of lamps. Comparisons of end-gages calibrated 
at various national laboratories by means of light- 
waves indicated that such calibrations are now 
sufficiently precise to meet the ordinary needs o: 
industiy but that the measurements would not bi 
fully satisfactory for the establishment of basi' 
standards, because the results-obtained in differen 


Department of State Bulleth 

countries might dilier by as much as 5-hundredths 
of a micron on a 100-millimeter gage, that is, 5 
parts in 10 million. Further research is needed to 
determine the causes of these discrepancies. 

In many physical measurements the force of 
gravity at the particular location must be known 
or assumed. The International Bureau therefore 
has in progress a determination of that force at 
Sevres. Preliminary results reported to the Con- 
ference indicate that the "Potsdam" basis for 
values of gravity, which has been generally used 
for half a century, is too large by 24 parts in a mil- 
lion. This agrees rather closely with determina- 
tions made at the National Bureau of Standards 
and the British National Physical Laboratory. 
However, additional determinations are under 
way in other laboratories. Consequently, the In- 
ternational Committee, following a recommenda- 
tion of its Advisory Committee on Thermometry, 

• agreed that values of the force of gravity involved 
in the determination of atmospheric pressures 
should conform to the classical Potsdam system 
intil the International Committee approves a 

The International Bureau also reported the re- 
sults of a recalibration of national kilogram stand- 
ards completed since the Ninth General Confer- 

j jnce in 1948. Of 24 standards originally certified 
n 1889, 2 showed no perceptible changes, 14 had 

! slight apparent increases in mass, and 8 showed 
small losses, the largest loss being 6-himdredths of 
I milligram, or 6 parts in 100 million. Kilogram 
N'o. 20, which belongs to the United States, ap- 
peared to have increased by 2 parts in 100 million 
between 1889 and 1948, but, if this was a real 
change, nine-tenths of it occurred before 1937 
vhen the last previous comparison was made. The 
veighings of 1889 were not sufficiently precise to 
nake it certain that any change has occurred in 
my of the national standards except one. 

An intercomparison of national and interna- 
ional meter bars is scheduled to begin in 1955, and 
)n this account special attention was directed to 
he possibility of increasing the precision of ob- 
ervations by ruling new lines to replace the origi- 
lal ones on the bars distributed in 1889. It is 
laimed that the lines can now be made so much 
letter as to reduce the uncertainty of calibrations 
■y a factor of 10. Additional lines can also be 
uled to give a length of one meter when the bar 
s at 20° C. instead of 0°. Some countries have 

expressed a desire to have their meter standards 
reengraved to gain these advantages. 

Redefinition of Meter Unit 

On the project to redefine the meter unit by bas- 
ing it on wave-lengths of light in a spectral line 
given by some single isotope, definite progress was 
reported. The Advisory Committee on Defini- 
tion of the Meter, at a meeting in September 1953, 
recommended that when a new definition is 
adopted it shall be expressed in terms of a wave- 
length in vacuum, derived from the presently ac- 
cepted M-ave-length of the red cadmium line in air 
under standard conditions. The conversion from 
air to vacuum wave-lengths is to be made in ac- 
cordance with a formula for the dispersion of 
normal air adopted in 1952 by a Commission on 
Spectroscopy recognized as the best authority in 
this field. 

The International Conxmittee approved this 
procedure for developing the new definition, but 
the actual adoption of a definition was not pos- 
sible because four different isotopes have been pro- 
posed as sources of light suitable for this purpose. 
Dr. W. F. Meggers of the National Bureau of 
Standards several years ago proposed that the 
wave-length of the green line of mercury of mass 
number 198 be adopted. Workers at the German 
Physikalisch-Technische Bundesanstalt have ad- 
vocated the use of a line in the spectrum of kryp- 
ton 86 and this year have added xenon 136 as an- 
other possibility. Reports from the Russian In- 
stitute of Metrology have favored the retention of 
cadmium, using, however, the single isotope cad- 
mium 114 instead of the natural metal. 

The British National Physical Laboratory and 
the Canadian National Research Council Labora- 
tory have studied some of these possibilities, but 
more information concerning the spectral lines of 
the isotopes, the types of lamps to be used, and 
other operating conditions is needed to give a basis 
for choice of a particular line. Consequently the 
Conference, while recognizing the progress made, 
urged the laboratories to expedite their work on 
monochromatic radiations in order that the 
Eleventh General Conference may reach a deci- 
sion on the problem. 

Redefinition of Unit of Time 

The question of defining a unit of time more 
constant in value than the mean solar second as 

anuary 70, 1955 


now deteniiincd by current astronomical observa- 
tions was brought up by a resolution adopted by 
the Intenuitional Union of Astronomy in 1952. 
The astronomers point out that the length of the 
mean solar ilay has varied by as nmch us 1 part in 
10 million iluring the period from 1870 to 1950, 
and there is no assurance that even larger varia- 
tions will not occur. Consequently the Union rec- 
ommended that for highly precise data (such as 
the frequencies assigned for some radio signals) 
the second be taken as a fraction of a single speci- 
fied year. The formal resolution, however, re- 
ferred to a ''sidereal'' year when it should have said 
"tropical" year. Consequently, the General Con- 
ference did not consider it advisable to act on the 
recommendation. Instead it authorized the Inter- 
national Committee to decide the matter without 
waiting until another General Conference con- 
venes. The second will presumably be defined as 
"the fraction 1/31 556 925.975 of the tropical year 

In accordance with a reconuiiendation of the 
Advisory Committee on Thermometry, the Con- 
ference adopted a new definition of the thermo- 
dynamic or absolute scale of temperature by as- 
signing the value 273.16° K for the triple point of 
water as the sole fixed fundamental point of the 
scale. This method of defining the scale has been 
advocated in recent years by Professor W. F. 
Giauque of the University of California but was 
originally suggested 100 years ago by I^rd Kelvin. 
Furthermore, any changes in assigned tempera- 
tures resulting from the change in definition of the 
scale are not likely to be greater than the uncer- 
tainty of present measures. The name Kelvin is 
therefore retained. 

In response to a request from the International 
Organization for Standardization for the estab- 
lishment of a standard value for nonnal atmos- 
pheric pressure, the Conference announced that the 
value adopted by the Ninth General Conference in 
the definition of the International Temperature 
Scale should be accepted for all purposes. It is 
1 013 250 dynes per scjuare centimeter, or, in the 
meter-kilogram-sec(md system, 101 325 newtons 
per square meter. 

A proposal for the establishment of a system of 
practical units for \ise by all countries, submitted 
by the French Government in 1918, gave rise to 
such diverse comments that the International Com- 
mittee was unable to juepare a generally acce])table 
revision. By a divided vote on some details, the 


Conference decided that as a basis for such a sys- 
tem the following units should be adopted: for 
length, the meter; for mass, the kilogi-am; for 
time, the second; for electric current, the ampere; 
for thermodynamic temperature, the degree Kel- 
vin ; for luminous intensity, the candela. 

Financial Report 

With regard to finances it was reported that, 
following a request made by the Ninth General 
Conference, 21 countries have made special gifts 
totaling about 79,000 gold francs ($25,800) for the 
improvement of the plant and equipment of the 
International Bureau. Although the United 
States Government has made no special cash gift 
in response to this request, it may be recalled that 
private American agencies have in the past given 
material assistance to the International Bureau. 
In particular, the Rockefeller Foundation gave 
funds for the enlargement of the Bureau labora- 
tory to provide room for work on electrical 

By action of the International Committee, valid 
because delegates of no country objected when the 
decision was reported to the Conference, the basic 
budget (contributions of countries which adhered 
to the Convention of the Meter before 1921) was 
increased from 175,000 gold francs to 300,000. On 
a corresponding scale eight countries which have 
adliered more recently will pay 55,000 gold franc.-, 
making the total of dues for the support of the In 
ternational Bureau 355,000 gold francs ($116,000; 
per year. 

Membership of International Committee 

The final act of the General Conference was 1 
election of members of the International Commit 
tee to bring the membership up to the total of 18,j 
as provided by the Convention of the Meter. Fn 
members elected in 19-18 or earlier remain. The 
are from Argentina, Italy, Rumania, Sweden, 
Yugoslavia. Eight members elected provisional] 
by the International Committee between 1948 
1954 were confirmed. These members are froi 
Canada, Czcchoslovalda, France, Germany, Japa 
the Netherlands, Spain, and the Union of Sov 
Socialist Republics. The remaining five vacancie 
were filled by electing members from Australia 
Austria, Finland, the United Kingdom, and thi 
United States. Dr. Astin is the new Americai 

Department of State Bullelli 

member, succeeding Dr. Crittenden, who resigned 
at the close of the Conference. At a meeting after 
the Conference, the International Committee 
elected, as its president, Andre Danjon, director of 
the Obsei-vatory of Paris; as vice president. Dr. 
Eichard Vieweg, president of the German Physi- 
kalisch-Technische Bundesanstalt ; and as secre- 
tary. Professor G. Cassinis, rector of the Poly- 
technic School of Milan, Italy. 

The present membership of the International 
Committee is as follows : 

Charles Volet, ex 

Director, International Bureau 
of Weights and Measures 

Allen V. Astin 

H. Barrel! 

G. D. Bourdoun 

G. Cassinis 

Andre Danjon 

N. A. Esserman 

R. H. Field 

M. T. Isnardi 

C. Kargatchin 

J. Nussberger 

Jos6 M. Otero 

M. Slegbabn 

C. Statescu 

Josef Stulla-Gotz 

Richard Vieweg 

A. Vaisila 
Ziro Yamauti 

lonuory 10, 7955 

327068 — 55 3 

Director, United States Na- 
tional Bureau of Standards 
Superintendent, Metrology 
Division, British National 
Physical Laboratory 
Vice-Director, Central Cham- 
ber of Measurements and In- 
struments, U. S. S. B. 
Rector and Professor in the 
Polytechnic School of Milan, 

Director of the Observatory of 

Chief, Division of Metrology, 
National Standards Labora- 
tory of Australia 
Professor, University of Am- 
sterdam, Netherlands 
Chief, Section of Metrology, 
National Research Council 
Laboratory, Canada 
Professor, Faculty of Sciences, 
University of Buenos Aires, 

Section Chief in the Ministry 
of Commerce of Yugoslavia 
Director, Service of Weights 
and Measures of Czechoslo- 

Director, Institute of Optics, 
"Daza de Valdes," Madrid, 

Nobel Institute for Physics, 
Stockholm .50, Sweden 
Technical Adviser, Service of 
Weights and Measures of 

Consultant, Bundesant fflr 
Eich- und- Vermessungsveesen, 
of Austria 

President, Physikalisch-Tech- 
nische Bundesanstalt, Ger- 

Professor, First Faculty of 
Engineering, University of 
Tokyo, Japan 

• Dr. Crittenden, mithor of the above article, 
in a consultant at the National Bureau of Stand- 
ards of the Department of Commerce and served 
as a representative of the United States at the 
Tenth General Conference on Weights and Meas- 
ures. He was formerly a member of tlie Interna- 
tional Committee on Weights and Measv/res. 

U.S. Delegations to 
International Conferences 

Economic Commission for Asia and Far East, 
Subcommittee on Trade 

The Department of State announced on Decem- 
ber 30 (press release 734) that Eugene M. Brader- 
man, Director, Far Eastern Division, Bureau of 
Foreign Commerce, Department of Commerce, had 
been designated U.S. representative to the first 
session of the subcommittee on trade of the Com- 
mittee on Industry and Trade of the United Na- 
tions Economic Commission for Asia and the Far 
East (Ecafe), to be held at Hong Kong from 
January 6 to 12, 1955. 

Mr. Braderman will be assisted by the following 
advisers : 

Charles L. Hodge, Office of Chinese Affairs, Department of 

Ralph H. Hunt, American Consulate General, Hong Kong 
C. Philip Clock, American Consulate General, Singapore 

At its sixth session (Kandy, Ceylon, January 
26-February 4, 1954), the Committee on Industry 
and Trade concluded that, while two trade pro- 
motion conferences which had been held under the 
auspices of Ecafe had laid a valuable foundation 
for trade promotion activities in the region, there 
was need for a standing subsidiary organ to insure 
regular and thorough examination of trade prob- 
lems at a technical level. It consequently estab- 
lished the subconmiittee on trade with the follow- 
ing terms of reference : (1) to review the trade and 
commercial policies of the countries of the region 
and to promote the development of interregional 
and intraregional trade, with a view to assisting 
the economic development of the countries of the 
region; (2) to review the progress made by the 
countries of the region in the development of tech- 


iiiques iuiu ineiiious lor iiaae proiuoiioii, iiiciuu- 
iiig tlie trainiii<f of trade promotion personnel ; 
and (3) to study other problems aii'ecting inter- 
national trade, such as price stabilization of com- 
modities, commercial arbitration, market research, 
and freight rates, liavin<r due regard to the work 
being done in these fields by the United Nations 
and other international agencies. 

The provisional agenda for the meeting pro- 
vides for a review of the trade promotion activities 
of the EcAFE secretariat, a review of current trade 

ueveiopiiienis, aim tue preseiuuLion anu uisciission 
of statements by the various delegations on the 
trade and commercial policies, bilateral trade 
agreements, barter arrangements, quotas, and 
licensing procedures of their respective countries. 
Special study will be made of questions relating 
to the market analysis of hides and skins for Asia 
and the Far East, commercial arbitration facilities, 
and standardization in the Ecafe region. In 
addition, the participants will adopt a program of 
work for the subcommittee. 

Freedom of Information as a Weapon for Peace 

Statement hy A. M. Ade Johnson 

U.S. Representative to the General Assembly ' 

In virtually all of the great, as well as small, 
tasks undertaken by the ITnited Nations, we are 
greatly dependent on a thing known as truth. It 
is sometimes an elusive commodity, even to us 
here in the United Nations, where we have fullest 
access to arcliives, reports, and other historical and 
technical materials. It is much more elusive to 
those who do not have these valuable materials at 
their fingertips. Throughout the whole history of 
mankind — certainly in historic times — there has 
been a constant search for truth in a world where 
truth is sometimes hard to pin down. There has 
been a constant struggle between truth on one side 
and falsehood, rumor, and half-truths on the other. 
So important has this struggle been to all peoples 
that it is reflected not only in the wi-itings of recog- 
nized scientists, teachers, and philosophers, but in 
the ancient folklore of peoples everywhere. I am 
reminded of an old folktale of Ethiopia which re- 
counts how Truth and Falsehood, after outwitting 
their enemies, were left on the field confronting 
each other. They fought, and Truth vanquished 
Falseliood. But Falsehood again arose from the 
ground and they fought again. Again F'alsehood 
was beaten, but soon he rose and fought again. So 

•Made in Committee III (Social, Humanitarian and 
Cultural) on Nov. 30 (U. S. Delegation press release 

it is, this old tale tells us, that truth and falsehood 
are destined to combat as long as the world exists. 
Truth will win, but it must fight again and again. 

John Milton echoed this ancient faith in the 
supremacy of truth when he wrote: "I^et truth 
and falsehood grapple; whoever knew truth put 
to the worse in a free and open encounter?" 

At no time in human history has it been more 
necessary for all men to know the truth. The 
world has shrunken mightily in the past few cen- 
turies. What more convincing evidence can there 
be of this fact than that we are .sitting here to- 
gether in this committee — representatives of 60 
nations in every part of the earth — discussing our 
mutual problems? The problems of one people 
have inescapably become the problems of all of 
us. In seeking solutions of our common problems, 
whatever we do is dependent upon our understand- 
ing of truth. Even more, it is dependent on the 
understanding of truth held by the peoples whom 
we represent. 

With the invention of printing, man was pre- 
sented with a boon and a challenge. Printing 
made possible tlie dissemination of ideas on a wide 
and expanding scale. Radio and television have 
made the spread of ideas almost instantaneous. 
Our obligation is to .see to it that the people of 
our countries have the constant and ever-present 
opportunity to disentangle truth from the web of 


Department of Sfafe Bulletin 

conflicting ideas, ihey must have the chiince to 
decide for themselves what is good for them and 
for all of us. We have the obligation, in short, of 
destroying the barriers which may exist against 
the free exchange of information and ideas. With- 
out this, the hope we have of solving many of our 
common jjroblems may come to nothing. 

At no time in our history has the need for a 
free flow of information been more real than today, 
when we have produced an almost incredible me- 
chanical and atomic technology. This technology 
is a critical factor in the relations between na- 
tions, and between governments and their peoples. 
How it is to be used for our common welfare must 
be determined by the world's peoples in an atmos- 
phere of enlightemnent. Our technology must 
remain an instrument which works for us, and 
not against us. Without the free exchange of ideas 
and information, without full access to different 
aspects of the truth, when it is impossible for us 
to compare and weigh one assertion against a con- 
trary assertion, we cannot adequately master and 
use our technical knowledge. Such barricades to 
truth can only result in the loss of man's power 
to control his environment, and the loss of his 
power to make decisions for the common good, 
and the loss of his political freedom as well. 

The development of a free press — of the right 
to voice facts or opinions in print — is the story 
of our struggle against repressive concepts of gov- 
ernment. Those concepts, unfortunately, persist 
tenaciously in certain parts of the world today. 
In some instances we observe partial attempts to 
control national and international thinking, to 
withhold facts which people have an inalienable 
right to know. We find varying degrees of cen- 
sorship of news at national boundaries, where some 
governments are attempting to deprive their own 
citizens of information known elsewhere, or to 
prevent news known within the country from 
getting out. This is no contribution whatsoever 
to a better informed and better world, or to the 
freedom of the citizens of any single nation, or — 
in the long run — to the durable and just peace 
which is undoubtedly one of the prime objectives 
, of the United Nations. 

We are confronted, however, with another phe- 
nomenon which is even more grim. Within cer- 
tain political areas of our 20th century world we 
find governmental systems which not only hamper 
and restrict the flow of information across their 
borders but maintain a strangling control over 

everything that their citizens may read m their 
newspapeis and magazines, over everything they 
may hear on their radios, and whtit they may see 
on television, on films, or in the theater. This 
situation can do nothing else but deprive vast 
populations of the capacity for making sound 
judgments, for knowing what others think, and 
for sensing the community of interests which peo- 
ples everywhere share. It can contribute nothing 
to peace, but on the contrary can only create a 
deep pool of misunderstandings that conceivably 
could lead to war. 

In exploring the question of freedom of infor- 
mation, as with all other vital matters, the better 
we can marshal the facts the better we will be able 
to bring our judgments and recommendations to 
bear. As we know, the Economic and Social 
Council at its I7t.h session passed resolutions on 
freedom of information which initiated action and 
study of 12 different aspects of this problem. 
That it was able to make so many decisions was 
due in great measure to the substantive facts and 
keen provided by the rapporteur, Mr. 
Salvador I^pez, in his excellent report.' One of 
the inspiring episodes of the I7th session 
was the abuse visited on Mr. Lopez for his forth- 
right and courageous presentation of facts about 
censorship and other obstacles to free exchange 
of information. My delegation hopes— I think 
we all hope — that this kind of situation will not 
arise again. I believe we are all interested in the 
benefits of freedom of news. And I am sure we 
will be in a better position to share these benefits 
as the facts become more familiar to us. 

U. S. Traditions 

Mr. Chairman, as the rapporteur so generously 
acknowledged in his report, my country was 
founded on principles among which freedom of 
speech and freedom of the press rank very high. 
The very first amendment to the United States 
Constitution, adopted in 1791, prohibits the Fed- 
eral Government from infringing on these free- 
doms. That amendment states, in simple lan- 
guage : 

Congress sli.iU make no law respecting an establishment 
of religion, or prohibiting the free exercise thereof; or 
abridging the freedom of sijeech, or of the press; or the 
right of the people peaceably to assemble and to petition 
the Onvernment for a redress of grievances. 

' U.N. doc. E/2426 and Adds. 1 to 5. 

January 10, 1955 


3ioreover, an amenament to tue j^ euerai v^on- 
stitution ill 1868 reinforced the deep-rooted prin- 
ciple of a free press by prohibiting the State 
governments from enacting any hiws which would 
"abridge the privileges or immunities" of Ameri- 
can citizens as proclaimed in the Constitution. 
Indeed, the constitutions of virtually every State 
within the Union impose clearest restraints on 
their governments against curtailing freedom of 
the press and speech. 

There is no basic right to which Americans are 
more alert than the freedom to speak and be heard ; 
the right to know the facts and to criticize or 
applaud them as they choose; the right to hear 
both sides of a question; the right to fonuulate 
their interpretation of facts and assertions on the 
basis of their own best human judgment; and the 
right to challenge assertions and weigh the 

I believe my country has contributed gi-eatly 
during the course of its history toward consolidat- 
ing and strengthening the fundamental principle 
of freedom of information. It is a principle dear 
to us, and we shall continue to support it in every 
way possible. 

In the United States today there are approxi- 
mately 20,000 newspapers and periodicals pub- 
lished on a regular basis. Twelve thousand of 
them are newspapers, and of these 1,775 are daily 
papers. More than 1,400 of the dailies are inde- 
pendents. I do not think I need to labor the point 
that wide differences of opinion are voiced by these 
papers, just as different opinions are voiced in the 
press of many other nations represented here. 

It is readily observable that among the news- 
papers of this city, for example, there is consider- 
able divergence in the treatment of news and in- 
terpretation of events. There are four morning 
papers, three afternoon papere. There are 
numerous language journals — Slavic, Chinese, 
Italian, Spanish, French, and others — many of 
which have news sources of their own. There are 
business papers and labor papers. There is even 
the Daily Worker. I think there can be little ques- 
tion of the news not being available to citizens of 
this city, and this is equally true of cities through- 
out the country. Some small towns may have only 
a single daily paper of their own, but also acces- 
sible are the journals of nearby towns and cities. 
In addition, virtually every home in the nation — in 
fact, almost every automobile — has a radio. And 


tnere are an esiimatea .ju million television re- 
ceivers, on which news from the major services 
and specialized services is available. 

It is very important that we do what we can 
to encourage the development of independent do- 
mestic information enterprises everywhere. The 
Economic and Social Council took full note of this 
need in Resolution 522 (X^^II)K on the en- 
couragement and development of independent do- 
mestic information enterprises. If we are to have 
freedom of information in the real sense of the 
word, there must be independent sources of infor- 
mation. Only if there are many informative media 
and only if they are really independent will they 
be able to give their readers and listeners the 
opportunity to discern truth for themselves. If 
truth and falsehood are to grapple, as Milton put 
it, then they must be pennitted to meet face to face. 

It is also our view that control by any single 
management group of press, radio, television, or 
film would not be in the public interest. There 
are three competing large news services in the 
United States — the United Press, the Interna- 
tional News Service, and tlie Associated Press. 
There are also smaller syndicates and agencies, 
such as the Nortli American Newspaper Alliance. 
These news-gathering organizations are in com- 
petition with one another. Their reputations, 
their livelihood, and their very survival depend 
upon their speed, their accuracy, and their ability 
to get the news and the news-behind-the-news. 
They provide news and information resources that 
otherwise M-ould be unavailable to the smaller 
newspapers without large amomits of money to 
invest in news coverage. In addition to the news 
agencies, many papere have their own correspond- 
ents assigned to overseas posts, to the National 
Capital, and to special events and international 
conferences of all kinds. Papers like the New 
York TinuK and the New York Herald-Trihune, 
which have a large staff of foreign correspondents, 
make their special dispatches available to other 
newspapers througliout the nation. And numer- 
ous papers in the United States subscribe to for- 
eign services. All these services are in competi- 
tion with one another. Tiiey are also in competi- 
tion with weekly news publications, such as News- 
week, Time magazine, and others. Because of this 
intensive competition, the pressures for ever- 
increasing accuracy and fuller coverage of news 
are acute. 

Departmenl of State Bulletin 

And I would like to point out that the United 
States Government does not own, subsidize, oper- 
ate, or control a single domestic news service, 
newspaper, radio station, or television station. 
In the licensing of domestic radio transmitters, as 
a matter of historic policy, the Federal Govern- 
ment is deeply concerned with the prevention of 
monopoly and with assuring that stations will 
observe the highest standards of fair play. 

Mr. Chairman, I am not citing these details out 
of boastfulness. I am well aware that a vast 
majority of the nations here have a comparable 
interest in the dissemination of news and the free 
exchange of opinion. We are only one nation 
among many which cherish the hard-won heritage 
of press freedom, of freedom of information. 

But this committee has a vital concern in estab- 
lishing the true character of information monop- 
olies and in discouraging them. There has been 
allusion in the past to the possible monopolistic 
nature of the big press services, and I think we 
ought to be quite clear that bigness in free enter- 
prise does not in itself constitute monopoly. In 
the United States we are in fact protected from 
monopoly by the very competition I have just 

Results of Information Monopoly 

If we seek to know what information monopoly 
really is let us look elsewhere. Let us take note 
of those nations where there are no private news 
services at all ; where a govermnent exercises the 
most rigid controls over all information media; 
where that government specifies what a news- 
paper or magazine may say or not say and screens 
news from the outside world — or prohibits it alto- 
gether — with a view to eliminating ideas or facts 
that contravert government policy. Mr. Lopez 
noted in his report last year that this situation in 
the Soviet Union produces "the greatest of all 
information monopolies — a vast political monop- 
I oly which is monolithic both in structure and in 
' function." Advocates and supporters of this kind 
j of monopoly attempt to justify it (if they do not 
I try to deny it) on the grounds that the prime pur- 
pose of information media is to further social 
objectives. I am impressed by the way the Lopez 
report of last year analyzed this rationale. I 
quote from the report : 

No one would deny that the Press is a major social 
force which must therefore put the general above the 

private good. But the only way in which the Press can 
perform this important function, the only way in which 
it can be a positive force for democratic and social prog- 
ress is by providing a forum for the public discussion of 
what those social goals should be. The only measure of 
substantive freedom which exists in the Soviet Press is 
the limited freedom (known as "self-criticism") to dis- 
cuss the strictly technical means for achieving prede- 
termined economic and social goals. No general public 
discussion, in the Press or elsewhere, of what those goals 
should be is permitted. 

Under conditions of this kind, as the report 
points out, the press is the instrument of a politi- 
cal monopoly designed to perform an authori- 
tarian function. There is no room in it for the 
dynamic social function of providing a forum for 
the free public discussion of ends and means. 

Mr. Chairman, we are aware of abuses of the 
right of public information in many parts of the 
world. Abuses exist in varying degrees. But 
the planned news control that we find in the So- 
viet-dominated areas today is the most complete, 
the most thorough, and the most intolerant of 
freedom of ideas. 

Early last month in Calcutta, Prime Minister 
Nehru of India commented on some of his obser- 
vations regarding Communist China, which he 
had just visited. He noted — with a good deal of 
disappointment — that "there was no opposition 
newspaper permitted in China." He said it was 
difficult to know what was happening elsewhere 
in the world by reading the Chinese newspapei-s. 
He said that in order to keep in touch with devel- 
opments in the outside world he had to depend 
on news bulletins of the Indian Embass}' in 

Mr. Chairman, it is to conditions such as these 
that we must give predominant attention if true 
freedom of information on a worldwide scale is 
to become a reality. 

One of the resolutions of the I7th session of the 
Economic and Social Council calls for keeping 
under scrutiny the violations of freedom of infor- 
mation which have been noted. It requests the 
Secretary-General to provide the 19th session of 
the Council with a "world-wide survey of current 
principles and practices involved in the censorship 
of outgoing news dispatches." It further requests 
the Secretary-General to provide "a study of pub- 
lic and private information monopolies and their 
effects on freedom of information." It is the 
view of my delegation that these studies will be 
invaluable to our proper understanding of condi- 

January 10, J 955 


tions and practices which exist and of how such 
conditions are affecting the exchange of dissemi- 
nation of news. 

But censorship is only the negative aspect of 
our problem. We are also all aware, I think, that 
some communities are not equipped with strong 
independent information enterj)rises because they 
lack the teclmical means and even the technical 
knowledge. The Economic and Social Council 
has recommended authorizing the extension of 
technical assistance in the field of freedom of 
information. My delegation, in cooperation with 
others, has offered a resolution which will make 
it possible for the Secretary-General to render 
services in this field, in line with the Council's 

Technical Assistance 

Technical assistance in freedom of information 
is of two kinds. Assistance relating to telecom- 
munications, paper pulp, paper newsprint, mod- 
ernization of plants, technical training of print- 
ers, and so on, can in nuiny cases qualify under the 
terms of the expanded program of technical as- 
sistance. The Economic and Social Council has 
alreadj' taken the necessary action to recommend 
to the agencies participating in the expanded pro- 
gram that they give due consideration to requests 
which governments may submit for such aid. 

There are other parts of the progi-am which 
would be related to social activity and the promo- 
tion of the rights and freedoms recognized under 
the charter and the Universal Declaration. 
Wliere such technical assistance would not be re- 
lated directly to economic development, it should 
be offered under the regular program of the 
United Nations. To the greatest extent possible, 
the proposed assistance should be pi'ovided within 
the limit of available funds and by utilizing the 
services of staff members already employed in the 
Secretariat. If any substantial number of .re- 
quests should be received, this eventually may re- 
quire an adjustment of allocation of resources for 
technical assistance under the regular budget. 
My Government recognizes this and believes that 
this field of activity is so important that such 
action would be fully justified. 

•U.N. doc. A/C. 3/L. 448 and Add. 1, sponsored by 
Chile, Ecuador, Ivebanon, Mexico, the Philippines, Sweden, 
and the United States ; adopted by Committee III on Dec. 
7 by a vote of 47-1-1 and in plenary on Dec. 17 by a vote 
of 63-0-2. 


May I point out that this resolution would 
merely grant authority to the Secretary-General 
to render technical assistance in a field where he 
does not now have that authority. The resolu- 
tion would not require any state to request techni- 
cal assistance, nor would it require the Secretary- 
General to render technical assistance. The reso- 
lution would merely extend the field in which the 
Secretary-General might render technical assist- 
ance if requested by a state. 

Mr. Chairman, the importance of our work in 
regard to freedom of information is very great. 
It involves much more than a basic philosophical 
or humanitarian right. It deeply involves the 
welfare of our small, 20th-century world. We 
have man}' complicated and vital issues which we 
shall have to solve together, because they concern 
all of us. We must all have free access to infor- 
mation. We must know what the contrary points 
of view are. We must know this not only in the 
halls of the United Nations but in the villages and 
countryside of every continent. Otherwise many 
people will be deprived of the capacity to bring 
their best judgment to bear on the vital questions 
that confront us. I, for one, have only the great- 
est confidence in the human race. If more people 
have access to all the known facts and to one an- 
other's views, our other tasks will be lightened. 
Freedom of information can prove itself to be one 
of the great weapons of peace. 

Law Commission Asked To Submit 
Finai Report on Higii Seas Problems 



I would like to explain briefly the position of 
my Government with respect to the item which 
we have now begun to consider. The Unit«d 
States Government took the initiative, along with 
several other governments, in proposing this item 
for the agenda of this session of the General 
Assembly.^ This initiative was taken because ol 
my Govermnenfs conclusion that a consideration 
by the Assembly of the Continental Shelf prob- 

'Made in Committee VI (Legal) on Nov. 29 (U.S. delfr 
gation press release 2045). 
• Bulletin of Sept. 20, 1954, p. 422. 

Department of State Bulletin 

lem, and, in particular, the draft ai'ticles on the 
Continental Shelf which were submitted last year 
to the General Assembly by the International Law 
Commission,^ should be undertaken as early as 
possible. It is the view of my Government that 
this consideration will provide a helpful and val- 
uable first step in working out eventual interna- 
tional agreement on this important problem, a 
problem which, so long as it remains unsettled, 
seems bound to give rise to increasingly serious 
disputes among nations. 

We are all, of course, aware that at its eighth 
session last year the Assembly decided "not to deal 
with any aspect of the regime of the high seas 
or of the regime of territorial waters until all 
the problems involved have been studied by the 
International Law Commission and reported upon 
by it to the General Assembly." This decision 
appears to have been based upon the view that, be- 
cause of the logical relationship which links to- 
gether all of the great variety of subjects which 
fall under the headings "regime of the high seas'' 
and "regime of territorial waters," a satisfactory 
consideration of any of these separately would be 
impossible. Such a point of view appears to have 
arisen out of what my delegation considers to have 
been an extreme of caution, to insure that any 
decision which might be taken by the Assembly 
regarding any single aspect of the general sub- 
ject matter should not in any way prejudice the 
decision which the Assembly might later take re- 
garding any other aspect of the problem. And, 
consequently, under this Kesolution 798 (VIII), 
the Assembly last year decided in effect to put off 
for an indeterminate period any consideration at 
all of any of the great number of problems relat- 
ing to the territorial sea and the high seas — prob- 
lems which are becoming of increasingly pressing 
concern to a number of the states of the world. 

Under the decision taken last year, the Assembly 
cannot even begin its search for a solution to 
these problems but must mark time for what prom- 
ises to be, in the view of my Government, too long 
a time. We recognize that the draft articles on 
the Continental Shelf were submitted to the As- 
sembly at its eighth session too late to permit gov- 
ernments to prepare adequately for substantive 
discussion of the articles and that consequently 
some sort of decision to postpone consideration 

' U.N. doc. A/2456, chapter HI. 

January JO, 7955 

was necessaj-ily a proper one for the Assembly 
to take. My Government has taken the initiative 
this year to reopen Assembly consideration of the 
subject because it is convinced that the period of 
postponement embodied in last year's decision was 
overly long. 

My Government does not consider that the prob- 
lems relating to the Continental Shelf are so linked 
to problems relating to other aspects of the re- 
gimes of the high seas and of territorial waters 
as to require that their consideration be postjwned 
until the International Law Commission has com- 
pleted all of its work on all of the great range of 
problems involved. Indeed, the International 
Law Commission could not have felt that a sepa- 
rate consideration by the Assembly of the various 
problems was impossible or inadvisable since the 
Commission itself has considered separately its 
own reconmiendations for disposition by the Gen- 
eral Assembly of the drafts of articles on the 
Continental Shelf and articles covering the basic 
aspects of the intei-national regulation of fislieries. 
In fact, we believe a separate consideration of the 
subject of the Continental Shelf coidd work a real 
advantage, because agreement on this subject may 
actually facilitate consideration and agreement on 
other related problems which tlie Assembly might 
subsequently consider. 

None of us here needs to be reminded that the 
Continental Shelf has been the subject of varying 
points of view. This variance has not been simply 
one over details of a concept wliich has received 
general accejjtance among states, but there exists 
basic disagreement which in its ramifications seri- 
ously threatens the substance of the vital principle 
of freedom of the seas. My Government attaches 
the greatest importance to this principle and con- 
sequently considers it of importance that steps 
be not long delayed to work out, in the United 
Nations, agreement on the problems which relate 
to the Continental Shelf. A large number of the 
frequent disputes whioli arise out of the exercise 
or attempted exercise of jurisdiction by coastal 
states over the ships of other states have as an im- 
portant underlying factor a difference of view 
concerning the scope of the concept of the Con- 
tinental Shelf. The United States Government 
views with increasingly serious concern these dis- 
putes and incidents which have been occurring. 
We think that the underlying causes of these dis- 
putes require tlie prompt attention of the General 
Assembly, and we urge other governinents to join 


with us in agreeing now to begin an exploration 
of the Continental Shelf problem at the Assem- 
bly's next session. 

In our view the draft articles on the Continental 
Shelf which have been submitted by the Inter- 
national Law Commission provide the best basis 
for discussions of the subject, and my delegation 
has joined with the delegations of Belgium, Cliina, 
the Netherlands, New Zealand, and the United 
Kingdom in sponsoring the draft resolution which 
is now before the Committee (Document 
A/C.6/L.339). You will note that this draft res- 
olution, if adopted by the Assembly, would record 
the view that any decisions taken with respect to 
the draft articles on the Continental Shelf should 
be without prejudice to the question of the breadth 
of the territorial seas. In addition to providing 
for a decision to include the item of the draft 
articles on the Continental Shelf in the provisional 
agenda for the 10th session, the resolution also 
takes account of the necessity of securing an early 
consideration by the Assembly of the other im- 
portant problems which relate to the regime of 
the high seas and the regime of the territorial 
waters, by containing a request that the Inter- 
national Law Commission give special attention 
to its study of these topics.'' 


U.N. doc. A/Resolutlon/267 

The General Assembly, 

Considering that the International Law Commission in 
its report on the work of the fifth session submitted for 
the consideration of the General Assembly draft articles 
on the fontinental shelf, 

Believing that consideration by the General Assembly of 
the regime of the liigh seas, the regime of territorial wa- 

' The sponsors of the draft resolution accepted amend- 
ments submitted by Argentina, Chile, Colombia, Costa 
Rica, Ecuador, El Salvador, Iceland, Mexico, Peru, and 
Uruguay (U. N. doc. A/C.6/L.341/Rev.l ) . In a state- 
ment to the committee on Dec. 3, Mr. Mahoney said in 
discussing the amendments: "My delegation understands 
this new language as expressing the intent that the In- 
ternational Law Commission should finish with its study 
and, whether or not it reaches complete agreement, should 
submit its final report on the topics listed in the resolu- 
tion, in time for consideration of these topics by the 
General Assembly at its eleventh regular session." 

At the same meeting, the committee adopted the 
amended draft by a vote of 44-0-9. 

• Adopted In plenary on Dec. 14 by a vote of 32-0-9. 


ters and all related problems should be undertaken with- 
out undue delay, 

Recalling that, in resolution 798 (VIII) of 7 Decem- 
ber 1053, the General Assembly, having regard to the fact 
that the problems relating to the high seas, territorial 
waters, contiguous zones, the continental shelf and the 
superjacent waters were closely linked together Jurid- 
ically as well as physically, decided not to deal with any 
a.spect of those matters until all the problems involved 
had been studied by the International Law Commission 
and reported upon by it to the General Assembly, 

1. Requests the International Law Commission to de- 
vote the necessary time to the study of the regime of the 
high seas, the regime of territorial waters and all related 
problems in order to complete its work on these topics and 
submit its final report in time for the General Assembly 
to consider them as a whole, in accordance with resolu- 
tion 798 (VIII), at its eleventh session; 

2. Decides to include the final report of the Interna- 
tional Law Commission on these topics in the provisional 
agenda for the eleventh session of the General Assembly. 

U.N. To Convene Conference 
on Fishery Conservation 



Eecent events have given renewed emphasis to 
many of the comments contained in the fisheries 
section of the report of the International Law 
Commission presented to the eighth session of 
the General Assembly.^ These events would seem 
to justify terms used by the Commission such as 
"a condition approaching anarchy" and to indi- 
cate that in its choice of words the Commission 
may have even indulged in understatement when it 
said that the inadequacy of existing law on the 
subject results in conditions "productive of fric- 

In the light of these events, my Government 
feels more than ever the urgency of United Na- 
tions consideration of the fishery question as the 
first step in resolving differences which are in- 
creasingly causing friction and ill feeling between 
friendly nations. The longer the United Nations 
delays consideration and action on the question, 
the greater is the opportunity for the fishery ques- 

'Made in Committee VI (Legal) on Dec. 3 (U. S. dele- 
gation press release 205.5). 
'U.N. doc. A/2456, paragraphs 04 and 102. 

Department of Sfofe Bulletin 

tion progressively to become more difficult. Dif- 
ferences whicli it may now be possible to reconcile 
may, if not dealt with promptly, grow to such pro- 
portions that they become major issues. 

In view of the overwhelming argmnents as to 
the urgency of this question, I think it need not 
be emphasized further. However, I would like 
to refer to some of the other issues which have 
been raised in connection with immediate con- 
sideration of the fishery question by the United 

In its report to the eighth session of the Gen- 
eral Assembly, the International Law Commission 
submitted its recommendations concerning fish- 
eries. This was one of the several questions it 
was studying within the scope of the general topic 
of the "regime of the high seas." The latter topic 
has been under study by the International Law 
Commission since its first session in 1949. 

By its action in submitting a separate draft 
Df articles on fisheries after 4 years of study, the 
[nternational Law Commission clearly indicated 
:hat tliis question can be considered separately 
from the other questions within the scope of the 
topic "regime of the high seas." In its report, 
the International Law Commission also referred 
to the "general importance and recognized 
urgency of the subject matter of the articles in 
question" and made the following comments : 

It is generally recognized that the existing law on the 
subject, including the existing international agreements, 
)rovides no adequate protection of marine fauna against 
;xtermination. The resulting position constitutes, in the 
irst instance, a danger to the food supply of the world, 
ilso, insofar as it renders the coastal State or the States 
iirectly interested helpless against wasteful and preda- 
;ory exploitation of fisheries by foreign nationals, it is 
Jroductive of friction and constitutes an inducement to 
States to take unilateral action, which at present is prob- 
ibly illegal, of self-protection. 

There may be some diiferences in opinion con- 
lerning these comments, but there can be little 
question that they apply in general to a large part 
)f the world. 

The United States Government is of the opin- 
ion that the International Law Commission has 
nade an excellent contribution to the formulation 
)f the problems and principles concerned in the 
lonservation of international fisheries and that the 
Commission has progressed about as far as it can 
)n the basis of legal considerations alone. It is, 
;herefore, of the opinion that study of the techiii- 

cal and administrative aspects of international 
conservation and regulation of fisheries and the 
operation of international research and conserva- 
tion bodies now is higlily desirable if not essential 
to effective treatment and solution of the problems. 
The results of such study should be invaluable to 
the General Assembly when further consideration 
is given to this matter. 

Through its experience in this field, involving 
eight conventions dealing with 20 other countries, 
the United States has become convinced that tech- 
nical and administrative considerations play an 
exceedingly important role in determining the 
principles and courses of action which will con- 
tribute most to the successful handling of inter- 
national fishery conservation problems. It seems 
reasonable that the United Nations should give 
careful consideration to technical and administra- 
tive phases of the matter of fisheries regulation and 
control before it takes action on a set of i^rinciples 
such as those proposed by the International Law 

The United States Government is convinced 
that, as a jjractical matter, the question of fisher- 
ies can constructively be considered separately 
from other questions concerned with the "regime 
of the high seas." In fact, it seems highly proba- 
ble that progress in solving fishery questions would 
facilitate progress in solving some of the other 
related questions. The international fishery con- 
servation experience of a number of states has 
been that solution of some of the less complex 
parts of the overall problem has made possible 
progress in solution of the more complex. 

It appears highly desirable and fully practical 
to seek agreement upon principles of international 
fishery conservation upon the high seas, even 
though there now are considerable differences 
among nations regarding the proper extent of the 
territorial sea. This question is under study by 
the International Law Commission. In the mean- 
time, under present concepts of the territorial 
sea, even according to the more extreme versions, 
there are broad areas of high seas, and there are 
populations of fish which frequent these areas dur- 
ing all or part of their life cycles. These fish pop- 
ulations support important and growing interna- 
tional fisheries. New techniques for locating and 
catching fish have greatly increased the efficiency 
of modern fishing operations and have their effect 
upon fishery resources. Joint action by nations 

\an\iary 10, 1955 


concerned is needed to provide for tlie continued 
niuximum productivity of these resources. Devel- 
opment of and agreement upon adequate and ef- 
fective principles for the conservation of inter- 
national fisheries need not and should not be held 
in abeyance i)cnding settlement of the otlier issues. 

Progress in resolving this question or phases of 
it, rather tiian handicapping efforts to reach agi^ee- 
ment on related questions, sliould be helpful. If 
the United Nations can develop agreement on 
principles or procedures for safeguarding the con- 
tinued productivity of high seas fishery resources 
in such a way as to give proper consideration to 
the interests of all nations, it may prove less diffi- 
cult to reconcile differences with regard to the 
necessary extent of the territorial sea. 

If we are first to limit and then to reduce the 
area of disagreement among friendly nations, 
which up to now has been widening, concerning 
the "regime of the high seas," it is essential that 
we find some area of agreement. We can then 
labor to expand this area until our differences 
diminish and, we hope, in time vanish. Conser- 
vation may well provide this area of agreement. 

]\fr. Chairman, a draft resolution, co-sponsored 
by Belgium, China, France, Greeee, Iceland, 
Netherlands, Panama, Turkey, United Kingdom, 
and the United States, has been tabled and is now 
before the committee.' This resolution provides 
for the convening of a conference to deal with 
problems of conservation and regulation of inter- 
national high-seas fisheries. Wo would like to see 
the proposed conference restrict its attention to 
the fish(Ty questions dealt with by the Interna- 
tional Law Commission and the problems related 
to the conservation of international fisheries. We 
would like to see the conference study the princi- 
ples proposed by the International Law Commis- 
sion and particularly consider their adequacy and 
practicability from the technical and administra- 
tive standpoint. It is not intended that the con- 
ference consider the subject of marketing or other 
economic matters divorced from conservation. In 
any event, however, it is evident that exploration 
of the problems above outlined, by an ad hoc con- 
ference with appropriate representation of experts, 
is a necessary prerequisite to any further construc- 

•U.N. (1.K-. A/C.O/L.34.3. The resolution, as amended, 
wns adopted by Committee VI on Dec. 7 by a vote of 
41-5(Sovlet bloc)-.--, and by (he iil«-nnry on Dec. 14 l)y a 
vote of 38-R-4. 


tive step which the United Nations may take in 
this field. 

My Government wishes to bring to the attention 
of this committee and the General Assembly the 
fact that the Organization of American States is 
planning to convoke a specialized conference in 
195.5 for the broad purpose of studying as a whole 
the different aspects of the juridical and economic 
system governing the submarine shelf, oceanic 
waters, and their natural resources, in the light of 
present-day scientific knowledge. The date for 
this conference has not yet been determined. Al- 
though the purpose of this conference covers mat- 
ters far outside the subject of the United Nations 
conference proposed in the draft resolution now 
before this committee, it is desirable to avoid any 
conflict in the dates set for the two conferences 
since such conflict might provide a handicap ti 
some countries in arranging for representation 
My Government therefore suggests that the Secre 
tary-General, in arranging for the proposed con 
ference, consult with appropriate representative': 
of the Organization of American States for th( 
purpose of setting conference dates which do no 
conflict, bearing in mind that the United Nation 
conference is to be convened not later than Jul; 


U.N. doc. .\/Resolullon/2C8 

The Qpncral Assembly, 

Considering that the luteruational Ljiw Comraission hn 
proposed for the consideration of the General Asseiiib' 
draft articles covering certain basic aspects of the ini 
national regulation of fisheries, and considering also tl: 
that Commission has not yet concluded its study of n 
lated questions. 

Havitifi reyanl to the fact that the problem of th 
international con.servatlon of tisheries involves matter 
of a technical character which require consideration on 
wide international basis by qualitied experts, 

Being of the opinion that an international technical cm 
fcrcnce should be held in the near future to consider tl 
problems of fishery conservation and make recommend: 
tions thereon, 

Reenlling that, by resolution 798 (VIII) of 7 Decembe 
195;}, the General .Vssombly, having regard to the fact th.i 
the problems relating to the high seas, territorial water 
contiguous zones, the continental shelf and the superjaci i 
waters are closely linked together juridically as well a 
physically, decided, consequently, not to deal with an 
aspect of those topics until all the problems involved ha 
been studied by the International Law Commission an 
reported upon by it to the General Assembly, 

Department of State Bulleli 

Having regard to the fact that the technical studies 
relating to the conservation, protection and regulation of 
fisheries and other resources of the sea are also closely 
linked to the solution of the problems mentioned in the 
preceding paragraph, 

1. Requests the Secretary-General to convene an inter- 
national technical conference at the headquarters of the 
Food and Agriculture Organization of the United Nations 
on IS April 1955 to study the problem of the international 
conservation of the living resources of the sea and to make 
appropriate scientitic and technical recommendations 
which shall take into account the principles of the present 
resolution and shall not prejudge the related problems 
awaiting consideration by the General Assembly ; 

2. Ini-itcs all States Members of the United Nations and 
States members of the specialized agencies to participate 
in the conference and to include among their representa- 
tives individual experts competent in the field of fishery 
conservation and regulation ; 

3. Invites the interested specialized agencies and inter- 
governmental organizations concerned with problems of 
the international conservation of the living resources of 

, ihe sea, to send observers to the conference ; 

4. Requests the Secretary-General to arrange for the 
lecessary staff and facilities which would be required for 
:he conference, it being understood that the technical 
services of Governments of Member States and the tech- 
lical and secretarial services of the Food and Agriculture 
Drganization shall be utilized as fully as practicable in 
he arrangements for such a conference ; 

5. Requests the Secretary-General to circulate the re- 
)ort of the conference for information to the Governments 
)f all States invited to participate in the conference ; 

6. Decides to refer the report of the said scientific and 
echnical conference to the International Law Commission 
IS a further technical contribution to be taken into ac- 
count in its study of the questions to be dealt with in the 
inal report which it is to prepare pursuant to resolution 

.... (IX) of 14 December 1954.'' 

'uture of Togoland Under 
J.K. Administration 

Uate7nent hy Senator H. Alexander Smith 
J.S. Representative to the General Assemhly ^ 

At successive sessions of the General Assembly, 
he United States delegation has followed with 
eep interest the evolution of the Togoland prob- 
!m before the United Nations. We have seen the 
'Ewe question" modulate into the "Togoland uni- 
cation question," and the emergence of the immi- 
ent question of the "Future of the Territory of 
'ogoland under United Kingdom Trusteeship." 

' See A/Kesolution/267, p. 64. 

'Made in Committee IV (Trusteeship) on Dec. 7 (U.S. 

-'legation press release 2064). 

inuary 10, 1955 

Perhaps no one will deny that this development 
has placed before the General Assembly its most 
important and complicated problem to date in the 
trusteeship field. 

The fact that the General Assembly is at this 
time considering the future of the small West 
African territory known as the Trust Territory 
of Togoland under United Kingdom administra- 
tion results both from the rapid political evolu- 
tion of that section of Africa and from the special 
responsibilities of the United Nations toward trust 
territories. More specifically, our consideration 
of this question derives from the memorandum of 
the United Kingdom Government of June 21, 1954, 
and Trusteeship Council Resolution 1002 (XIV). 
In its memorandum the United Kingdom Govern- 
ment states that the Gold Coast, of which British 
Togoland has administratively constituted an in- 
tegral part since World War I, will shortly achieve 
an independent status. "Wlien this occurs, the 
United Kingdom has indicated that it will be nec- 
essary to amend, replace, or terminate the trustee- 
ship agreement for the Territory. 

In the 14th meeting of the Trusteeship Council, 
the United States representative spoke of the im- 
portance of the recent developments in West 
Africa which have resulted in the rapid evo- 
hition of the trusteeship problem now before us.* 
He emphasized the great significance of June 15, 
1954, when general elections were held in the 
Gold Coast and British Togoland mider a sys- 
tem of universal adult suffrage. Inasmuch as the 
peoples of British Togoland had an opportunity 
to express, by their support for various candidates, 
their views on questions relating to the future of 
their territory, these elections were hailed as a step 
toward an ultimate application of the principle 
of self-determination. This was the basis for our 
sponsorship of Trusteeship Council Resolution 
1002 (XIV) , which took note of the United King- 
dom Government's request that the "Future of the 
Trust Territory of Togoland under United King- 
dom Trusteeship" be placed on the provisional 
agenda of the Ninth General Assembly. 

Mr. Chairman, the matter before us relates to 
but a segment of the important political develop- 
ments which are taking place in West Africa. The 
Congress of the United States, in a joint resolu- 
tion approved by the President on August 27, 
1954, as Public Law 667, 83d Congress, 2d Session, 

' BuixETiN of .Tuly 12, 1954, p. 62. 


took note of the i-ecent milestones in the progress 
of peoples in this area toward self-government and 
independence. The occasion for this joint reso- 
lution was to extend the most cordial greetings of 
the Congress of the United States to the repre- 
sentative bodies of the Gold Coast and Nigeria on 
the occasion of the meeting of their legislatm-es 
imder their revised constitution. 

I commend a reading of this resolution by the 
petitioners who have come here to present various 
views in regard to the future administration of 
their territories. Tliey will find in it a statement 
of "the policy of the United States to encourage 
efforts toward independence and self-government 
truly expi-essive of the desires of the people and 
as they show their capability to establish and pro- 
tect free institutions." They will also find implicit 
in the resolution a sincere and solid basis for the 
warm welcome and sympathetic consideration for 
their aspirations which I have the honor to express 
on behalf of my delegation and my Government. 

It is the view of the administering authority that, 
through integration with an independent Gold 
Coast, the Trust Territory of Togoland under 
United Kingdom administration would achieve the 
objectives of the trusteeship system. They con- 
sider, moreover, that such integration is what the 
majority of British Togolanders desire, and they 
point to the results of the general elections of last 
June as a preliminary indication that this inter- 
pretation of the inhabitants' wishes is correct. At 
the same time they appreciate that, as one party 
to the trusteeship agreement, the General Assem- 
bly will wish to form its own opinion as to what 
status the majority of the inhabitants desire for 
their territory when the Gold Coast becomes inde- 

Determining the wishes of a territory like Brit- 
ish Togoland, where acquaintance with modem 
.political institutions is still very new, is not an easy 
task. This underlines the importance of taking 
great pains to assure that means are devised 
whereby the wishes of the people are fully, effec- 
tively, and accurately expressed, reflecting a gen- 
uine understanding of the issues at stake. 

It is for this reason that my delegation finds it- 
self in entire agreement with the resolution intro- 
duced by India, which would entrust the initial 
task of drawing up arrangements for ascertaining 
the peoples' wislies to the Trusteeship Council. 
The Council as the United Nations organ devoted 
particularly to the functioning of the trusteeship 

system is in the best position to give this matter 
the thorough study it warrants and to work out 
the most effective possible arrangements for final 
decision by the General Assembly. We agree, too, 
that the Council should have the benefit of an on- 
the-spot study of this problem by a visiting mis- 
sion. We feel sure that with such assistance the 
Council will be able to present a plan to the next 
General Assembly that will command wide sup- 
port and contribute to the effective functioning of 
the trusteeship system at this historic juncture in 
its development.' 

New Status of Greenland 

Statement 6y A. M. Ade Johnson 

U.S. Representative to the General Assembly^ 

In addi'pssing the committee on the question of 
cessation of transmission of information concern- 
ing Greenland, my delegation wishes to extend a 
warm welcome to the two honorable Greenland 
members of the Danish Parliament who have 
journeyed here to assist us in our deliberations. 
We trust that the return visit of Mr. Augo Lynge 
and Mr. Frederik Lynge to the United Nations 
and to our country will be a rewarding one. 

My delegation and my Government wish to 
record their appreciation for the way in which the 
Danish Government has complied with General 
Assembly Resolution 222 (III) which calls for the 
transmission to the United Nations of information 
on the constitutional changes which occur and 
which lead administering members to decide to 

' On Dec. 14 the General Assembly, by a vote of 44-0-12, 
adopted a resolution (A/Hes./277) (1) deckliug to ascer-i 
tain the wishes of the inhabitants as to their future, 
(2) requesting the Tnisteeship Council to consider ar- 
ranjrements, (3) further requesting the Council to send 
a special visiting mission to the two Togolands to study 
the problem, and (4) urging that meanwhile those directly 
concerned lend their utmost cooperation to earlier recom- 
mendations of the Assembly. 

'Made in Committee IV (Trusteeship) on Nov. 10 (U.S. 
delegation press release 2016). 

The committee on Nov. 12 adopted by a vote of 3 4 1 12 
a resolution (U.N. doc. A/C.4/L.354 ) , as amended, by 
which the General Assembly would afiirm that Greenland 
had ceased to be a non-self-governing territory and that 
Denmark need no lon.irer transmit data on the territory. 
The Assembly approved the proposiU on Nov. 22 by a vote 
of 45-1 (Belgium) -11. 


Department of State Bulletin 

cease reporting on a particular territory. My 
Government, as the committee will recall, has had 
some experience in complying with this resolu- 
tion^ and can, therefore, fully appreciate the 
background entailed in the preparation and trans- 
mittal of documentation such as that contained in 
the communication from the Minister of Foreign 
Affairs of Denmark to the Secretary-General of 
September 14, 1953.^" In this same connection we 
congratulate the Danish delegation upon the com- 
pendium of developments during the years leading 
up to the constitutional amendment of June 1953." 
This remarkably fine catalog of up-to-date in- 
formation on Greenland, prepared in accordance 
with the "standard form," is a most fitting con- 
clusion to the transmission of information on a 
former non-sel f-goveining territory. At the same 
time it constitutes a splendid introduction to the 
land and people of what has become an integral 
part of the Danish realm. This report, together 
with the handsome and fascinating volume on 
Greenland published by the Royal Danish Minis- 
try for Foreign Affairs and the statements by the 
Danish delegation in the Committee on Informa- 
tion and in this committee, sets forth a record of 
human achievement, advancement, and coopera- 
tion which should be heart-warming indeed to the 
General Assembly. 

In the Conmfiittee on Information the United 
States delegation shared the unanimous view that 
the information before it indicated that Green- 
land may be considered as falling outside the scope 
of chapter XI of the charter, and consequently it 
is no longer necessary or appropriate for the Gov- 
ernment of Demnark to transmit information 
under article 73 (e). At that time the United 
States delegate stressed the fact that there could 
be no doubt as to Denmark's good faith or the 
desire of the people of Greenland to become an 
integral part of the Danish reahn. It has been 
made clear by the Greenland members of the Dan- 
ish delegation that the local population has en- 
joyed full freedom of choice. 

On behalf of my Government, I wish to express 
again the hope that the peoples of Denmark and 
^Greenland will be successful and prosperous as 

'For material on the cessation of transmission of in- 
formation concerning Puerto Rico, see Bulletin of Feb. 
), 19.53, p. 229 ; Apr. 20, 1953, p. 584 ; and Dec. 14, 1953, 
?. 841. 

" U.N. doc. A/AC.35/L.155. 

" This memorandum is attached as an annex to L. 155. 

ilanuary 70, 7955 

a single nation and to thank their Government 
and the Danish delegation for their valuable co- 
operation with the United Nations. Although 
Denmark will cease to appear on our rolls as an 
administering member, we will continue to have 
the benefit of its delegation's experience and pro- 
verbial cooperation here in this committee. Those 
members of delegations with the longest experi- 
ence in United Nations work are in the best posi- 
tion to appreciate the tribute due our staunch 
colleague in this committee, Mr. Hermod Lan- 
nung, for his dedication to the principles which 
guide our work, his friendliness, and his long- 
standing record of helpful collaboration. 

Economic and Social Progress in 
Non-Self-Governing Territories 

Statement l>y C. D. Jackson 

U.S. Representative to the General Assembly ' 

Mr. Chairman, in view of your announcement 
Wednesday that we would consider together all 
aspects of the item before us, I will comment first 
on the report on economic conditions.^ There- 
after, I would like to report to the Committee on 
two interesting developments in territories under 
United States administration. Finally, I wish to 
make some general comments on the value of the 
work of the Non-Self-Governing Territories Com- 
mittee and the Fourth Committee and the general 
approach of my Government to the problem of 
dependent territories. 

Report on Economic Conditions 

We believe that the report on economic devel- 
opments is a worthy supplement to the report com- 
piled in 1951. As was the case with respect to the 
earlier report, the Committee's task was facili- 
tated by the analyses of special economic problems 
in non-self-governing territories prepared by the 
Secretariat. In this connection my delegation 
found the paper entitled "Enlargement of the 
Exchange Economy in Tropical Africa" ^ to be 
of particular value. Administering members too 

'Made in Committee IV (Trusteeship) on Oct. 25 (U.S. 
delegation press release 1989). 
" U.N. doc. A/2729. 
' U.N. doc. E/2557. 


are to be congratuJated tor the quantity and qual- 
ity of the information they are transmitting. The 
vahie of tlie information transmitted transcends 
our limited purposes in the Committee and here 
in the Fourth Committee. I am sure that all ad- 
ministering authorities are aware of the impor- 
tance of maintaining reliable and up-to-date sta- 
tistical services in their territories so that avail- 
able information on them will be as complete as 
possible. Developments in the private sector of 
the economies is one area in which my delegation 
believes we could usefully get more complete in- 

Turning to the substance of the Committee's 
report, we note the emphasis which is given to 
popular participation in the economic develop- 
ment of territories as jDart of a fundamental phil- 
osophy affecting the whole range of developments 
in non-self-governing territories and the relation- 
ship between administrations and peoples. We 
attach great importance to the closest possible 
participation of the indigenous inhabitants of non- 
self-governing territories in the process of plan- 
ning and executing economic development pro- 
grams. There are few things wliich will promote 
the capacity of a people for self-government fas- 
ter than the assumption of direct responsibility 
for the formulation and execution of their own 
development programs. In many territories the 
responsibility assumed by the local peoples is al- 
most complete. In others it is still confined to an 
advisory role. My delegation is gratified by the 
progi-ess that has been made in this field and would 
encourage the administering authorities to pursue 
this line of development. 

One of the most basic problems of development 
in underdeveloped areas is that of financing devel- 
opment programs. The information available in- 
dicates that acbninistering authorities have tried 
in varying degrees and with varying success to 
mobilize local capital for this puii^ose. Although 
such capital is not always readily available in non- 
self-governing territories in sufficient quantities, 
successful efforts to mobilize it can increase the 
sense of participation in development as well as 
providing a stake in the future of the territory for 
the inhabitants. In this connection I would like 
to reaffirm the interest of the United States in ex- 
panding the investment of international private 
capital in underdeveloped areas. In so doing it is 
not my intention to minimize the need for public 
investment in the development of basic facilities 

or tor the mobilization ot local capital investment. 
The potentialities for development from the in- 
vestment of international private capital are such 
that it will be well worthwliile for countries to 
make genuine efforts not only to remove the more 
obvious impediments to the flow of private capital 
but also to attempt to create the necessary favor- 
able climate to attract it. 

My delegation believes that it is particularly 
noteworthy that at the 1954 session of the Com- 
mittee on Information six members included spe- 
cialist advisers on economic affairs on their delega- 
tions. These specialists made a solid contribution 
to the Committee's report, and it is hoped that at 
future sessions the Committee will have the benefit 
of such technical advice. The U.S. delegation 
has consistently taken the view that the Committee 
on Information provides an excellent forum 
through which members have an opportunity to 
exchange views on problems which in many re- 
spects are universal and not particular to a limited 
number of territories. The opportunity provided 
by the Committee for both administering and non- 
administering members to exchange their views 
and experiences in dealing with similar problems 
can be of great value and can ultimately contribute 
to the welfare of non-self-governing peoples. [ 

We would urge the General Assembly to ap- j 
jjrove the Committee's economic report in its gen- 
eral terms and bring it to the attention of special- 
ized agencies and other organizations interested in 
the economic advancement of non-self-governing 
peoples and recommend it for the consideration of 
the administering members. 

Turning now to the social and educational fields, 1 
I would like to share with the Committee informa- a 
tion on two recent developments in U.S. territories ^ 
because they may be a source of inspiration andli 
practical value to other peoples. 

Virgin Islands Program 

Members of this Committee are well aware of 
the need for developing opportunities for higher 
education in dependent territories and the tre- 
mendous efforts which are required to even begin 
to meet this problem. In many small or highly 
underdeveloped territories an institution of highei 
education often seems to be a remote possibility 
For this reason the recent development of the Vir- 
gin Islands progi'am for improvement of teachinr 
we believe is significant. 


Department of Slate Bulletin 

This program is the result of the initial efforts 
of Dr. Alonzo G. Moron, a native of the Virgin 

' Islands who is now the President of a well-known 
American institution of higher education, the 
Hampton Institute in Virginia. Dr. Moron has 
remained deeply concerned with the problems of 

j the Virgin Islands. Through his efforts and the 
cooperation of the Ford Foundation, there has 
been established in the islands the Hampton Insti- 
tute-Ford Foundation program for the improve- 
ment of teaching in the Virgin Islands. The 
Committee may be interested in a brief report on 
this program. 

Aided by a grant of $247,200 from the fund for 
the advancement of education, Hampton Institute 
has embarked on a twofold program for the im- 
provement of the quality of teaching in the Virgin 
Islands. The need for such a progi-am arises 
mainly from the fact that there is no institution of 
higher learning on the Virgin Islands, and the ed- 

" iicational system there has had to recruit teaching 
5taff from graduates of the local high schools. Of 
the 180 teachers in the system, approximately 80 
percent have had no training beyond high school. 
Beginning October 1, 1953, Hampton Institute 
sent two members of its faculty to give in-service 
courses to teachers in the Virgin Islands. These 
two teachers conducted classes for the Virgin 
Islands' teachere on the Island of St. Croix during 
the first semester and the Island of St. Thomas 
during the second semester. Eighty-five percent 
of all the public school teachers who are not col- 
lege graduates were enrolled in these courses. 
This in-service program was continued during the 
summer of 1954 with the establishment of session 
I of the Experimental College for the Virgin 
Islands at St. Thomas. To conduct courses during 
an intensive 5-week session, Hampton Institute 
sent four distinguished professors fi'om Hampton 
and other colleges to conduct courses in English, 
mathematics, American history, and sociology. 
Ninety-eight teachers from the three islands were 
enrolled in these courses and enjoyed the expe- 
rience of attending a "college" in the Virgin 
Islands. For these 5 weeks a hotel was rented to 

•house the teachers from St. Croix and St. John and 
the off-island faculty. Classes, lectures and rec- 
reation activities were all held at the hotel site. 

The second aspect of this program for the im- 
provement of the quality of teaching in the Virgin 
Islands involves the granting of all-expense 
scholarships to a select group of 10 high school 

students from the Virgin Islands to enable them 
to matriculate at Hampton in a special teacher- 
training course. Eecognizing the opportunities 
for experimentation, the college has designed a 5- 
year course of which the first 4 years will be de- 
voted to the study of liberal arts subjects with a 
fifth year of practice teaching, seminars, and edu- 
cational methods. Also participating in this spe- 
cial program will be a select group of 10 scholar- 
ship students from the continental United States. 
This particular type of training was chosen for 
this group in an attempt to prepare teachers whose 
training would be broad enough to enable them 
to provide leadership in the community at the 
same time they were doing good work in the 
school system. 

The local government has given excellent coop- 
eration to Hampton Institute and to the fvmd for 
the advancement of education in this joint en- 
deavor. Since the grant was made to the college 
instead of the Government of the Virgin Islands, 
the program has proceeded without interruption 
from recent changes in the local administration. 

The program will continue in 1954-55 with an- 
other team of teachers being sent to the Islands for 
the winter and spring sessions. Session II of the 
Experimental College will be conducted in St. 
Croix in the summer of 1955. 

As national chairman of the United Negro 
College Fund, the development of this type of 
program at Hampton Institute is particularly 
gratifying to me. 

Foreign Aid Trainee Program in Hawaii 

The second development I should like to men- 
tion relates to the Territory of Hawaii. The mul- 
tiracial population of the territory is made up of 
Hawaiian, part Hawaiian, Puerto Rican, Chinese, 
Japanese, Caucasian, Korean, Filipino, and other 
races. The Caucasian percentage of the total 
population is only 15.3 percent. We believe that 
Hawaii presents to people on the American main- 
land as well as those from abroad an inspiring 
example of how peoples of different ethnic origins 
can learn to live and work happily together; of 
how social understanding can be enhanced as social 
prejudices are removed. In this respect we be- 
lieve that Hawaii has a significant contribution to 
make to international understanding because of 
the nearness of its people in culture, thought, and 
ancestry to peoples of many other countries. 

January 10, J 955 


Desiring to play a part in the promotion of inter- 
national understanding as an essential for securing 
future world peace, the territory itself has 
launched what we believe to be a very sound in- 
vestment in the great cause for which the United 
Nations was established. Its Governor, the Hon- 
orable Samuel Wilder King, has recently ap- 
pointed a Foreign Aid Trainee Program Commit- 
tee under the chairmanship of the President of 
the University of Hawaii. The membership of 
this Committee is representative of the Govern- 
ment of Hawaii,, the University of Hawaii, and 
the entire business community. 

Although this Committee has been in existence 
less than a year, its accomplishments to date and 
its planning for the future ai-e encouraging. The 
broad aims of the Committee are to bring about 
the establishment in the free social climate of 
Hawaii a training center for American students 
and technicians going out to the Far East, Asia, 
and the Pacific Islands and for students and other 
visitors coming from these areas to the American 

Already a short orientation program for stu- 
dents coming to America has been established. 
While students are studying our language and 
being briefed on such matters as United States 
customs, money, transportation, foods, living con- 
ditions, etc., they shall have the opportunity to 
visit territorial and municipal offices, court ses- 
sions, trade union headquarters, sugar plantations, 
canning factories, and city and farm homes. The 
Committee is working toward the establishment 
of long-term training and observation programs 
utilizing the excellent training facilities available 
in the fields of health, education, agriculture, in- 
cluding agi'icultural extension and plantation 
health and management, public administration, 
business and vocational education. 

In the 4-month period from June through Sep- 
tembei', the International Cooperation Center 
served 305 individuals from 18 countries who al- 
together spent 1,590 man-days in Hawaii under 
the auspices of the center. 

The idea that Hawaii would be an excellent 
place for training Americans to go abroad and 
people from other countries coming to the United 
States is not a new one. However, this idea did 
not get translated into a coordinated progi-am 
until the people in Hawaii organized themselves 
for the purpose of increasing their capacity to 
promote cooperation and understanding in the 

field of international relations. In launching their 
training center, they drew heavily upon the expe- 
rience and methods utilized in Puerto Rico in 
the successful establishment and development of 
training programs in that island. The program in 
Hawaii is managed locally : its director. Dr. Y. 
Baron Goto, is of Japanese origin; its deputy 
director is of Chinese origin; while its secretary 
is Caucasian. 

Mr. Chairman, I have invited attention to these 
two developments as examples of the type of activ- 
ities being carried on in many countries. Kno^vl- 
edge of worthwhile action of this sort should 
become increasingly widespread. Here in this 
Committee and in the Committee on Information 
there is a very real opportunity to exchange infor- 
mation and to gain an appreciation of con- 
structive developments which are taking place 
in many countries. Such developments demon- 
strate the important principles of cooperation and 
good-neighborliness set forth in article 73 (d). 
and article 74 of the charter which should be fun- 
damental guides for our work here. 

Work of Committee IV 

I feel that this conclusion of what might be 
called the "business" portion of my remarks, with- 
out an additional thought or two concerning the 
work and responsibilities and "mood" of this Com- 
mittee, would not fully convey my feelings to you, 
Mr. Chairman, and to the members of the Com 
mittee. It is possible that I am motivated to dc 
this by the fact that I am a newcomer and there- 
fore somewhat more impressionable than some ol 
you who have been through it all before. But, aj 
a newcomer, I could not help reflecting over the 
past weeks about this Committee and its work. 

I suppose that the thing that struck me with 
greatest force was the simple fact that this Com- 
mittee exists. I am impressed by the fact that 
representatives of 60 nations should gather here 
to discuss the problems of the 200 million people 
who live in colonial or non-self-governing terri- 
tories, many of them in remote areas and probabl\ 
quite unaware that they are the subjects of in- 
ternational eliscussion. It seems to me that in tlu 
sweep of history it is still a new, even a revolii 
tionary concept, that the fate of peoples "not yet 
able to stand by themselves under the strenuous 
conelitions of the modern world," as the I^agut 
Covenant put it, should be the concern of the inter- 
national couununity. 


Department of State BvlleI'm 

That there are differences of view, sometimes 
iharp differences, as to how these people should 
)e assisted to play their full role in the world, is 
lot surprising ; in fact it seems to me normal and 
lealthy. Nor does it in any way detract from the 
mportance of this Committee that its functions 
ire limited to discussion, exchange of views, and, 
vhere appropriate, the formulation of recommen- 
lations. As a person who has devoted more than 
wo decades to the study of public opinion and 
he dissemination of information, I would be the 
ast to underestimate the power of ideas. I am 
veil aware, too, that when the ideas are infused 
vith emotion they often impel people to action. 
But wlien that emotion reaches a certain intensity, 
he resulting action may be hasty and ill-consid- 
sred — even violent. 

One of the dominant ideas in the contemporary 
vorld is the idea of "nationalism." This con- 
sept is, moreover, heavily loaded with emotion, 
[n this fact lie both the virtue and the danger 
n this Committee's discussions. Negatively 
ipeaking, the virtue lies in the fact that discus- 
ion, even intemperate discussion, is better than 
ntemperate action. Moreover, discussion serves 
,0 bi'ing out the complexities of some of these 
)roblems and correct somewhat the tendency we 
ill have to oversimplify and to be doctrinaire as to 
heir solution. 

The danger lies in the possibility that the in- 
ensity with which some delegations push for the 
icceptance of their convictions may threaten the 
ssential cooperation of those members on whom 
[evolve the practical problems of bringing about 
he desired progress. 

The payoff, to use an American colloquialism, 
loes not belong to the most vehement nation but 
o the nation able to do something about it — 
lamely, the administering authority. Now it is 
lot enough just to be able. That nation must 
-Iso be willing. And therein lies the subtlety 
aherent in the debates of this particular Com- 
littee. If the heat of the debate impairs the 
rillingness, there is no longer any influence on the 

, These thoughts, and the plea for moderation 
1 1 our discussion that is implicit in them, will not 
; e new to you. However, I feel that they are worth 
JStating at this time, particularly as they repre- 
, 5nt a basic element in my Govermnent's approach 

> colonial questions. As Secretary of State 

)ulles expressed it, where we exercise restraint 

January 10, 1955 

it is because of a reasoned conviction that pre- 
cipitate action would in fact not produce in- 
dependence "but only transition to a captivity far 
woi-se than present dependence." At the same 
time he went on to emphasize "our conviction 
that orderly transition from colonial to self-gov- 
erning status should be carried resolutely to com- 

It is not necessary to dwell here on the fact that 
orderly transition to genuine and lasting self- 
govermnent or independence means that solid 
economic, social, and educational foundations 
must be built. While the international conununity 
has a legitimate concern that the need for sound 
foundations not be used as an excuse to delay 
political progress, it is obvious that the respon- 
sibility for building these foundations rests almost 
entirely with the administering powers in co- 
operation with the colonial peoples themselves. 
The contribution of the international conunmiity 
is largely in terms of ideas and attitudes. It is 
in this field that my delegation feels that the Non- 
Self-Governing Territories Conunittee and this 
Committee can make their most valuable con- 

I think it is useful at this point to state what 
I believe to be a fact of contemporary political 
life: In the free world the trend toward in- 
creasing self-government is a genuine, accelerat- 
ing trend. In the free world the direction of the 
flywheel of colonialism has not only been ar- 
rested — it has been reversed. 

Given this fact, what should our attitude be? 

Certainly not complacence. Some who may not 
feel that the flywheel is turning in its new direc- 
tion with sufficient speed obviously have the right 
to express impatience. But I wonder if it would 
be a wise course to allow impatience to become 
indignation. As I said, we do not have to stop the 
flywheel ; we don't even have to start it going the 
other way — it is already moving in the proper di- 
rection in the free world. There may be other 
and more appropriate subjects for indignation. 

That is the sum of my somewhat philosophical 
reflections, which I hope you will not take amiss 
from a newcomer. 

We will listen with the gi-eatest interest to the 
views of other members, and we hope that when 
this session has concluded, we will have been 
drawn together by the objectives we share more 
than divided by our differences as to the methods. 

Illustrative of what I am trying to say in 


measured language occurred in somewhat less 
measured language last Friday [October 22]. In 
speeches we heard here on Friday some rather 
strong language was used regarding the admin- 
istering authorities, including a reference to the 
European nations as "hypocritical" in their at- 
titude toward non-self-governing territories. 

If such a statement can be made in this Com- 
mittee in reference to nations which have demon- 
strated actual, visible, tangible forward movement 
toward decolonialization, may I redress some of 
the balance by suggesting that some notice, no 
matter how cursory, be taken of the new colonial- 
ism which is rising in the Soviet orbit. We ought 
to consider whether there isn't more than one 
kettle we wish to call black, or, to put it another 
way, which particular one merits our indignation. 

In the eyes of the world the success of our work 
will not be judged by the extent to which any one 
of our viewpoints has prevailed. It will be judged 
by the extent to which it has actually advanced the 
dependent peoples along the road to stable and 
secure self-government or independence — a goal 
that will not be advanced by disunity in the free 


Current Actions 



Convention on the prevention and punishment of the 
crime of genocide. Done at Paris December 9, 1948.' 
Ratification deposited: Greece, December S, 19r)4. 

North Atlantic Treaty 

Agrceiiipiit im the status of the North Atlantic Treaty 
Orgaiiizution, national representatives and interna- 
tional staff. Oi)ened for signature at Ottawa September 
20, l!).--,!. Entered into force May IS, 19.")4. TIAS 2092. 
Ratification dtpositcd: United Kingdom of Great Urit- 
ain and Northern Ireland, December 10, l',)54. 


Intenialionnl tek'coniniunication convention. Signed at 
Huenos .Vires December 22, 1952. Entered into force 
.lanuary 1, 19.'>4.' 

' Not in force for the United States. 

Associate Membership approved {United Kingdom <ip 
plication) for: Bermuda-British Caribbean Groui 
(Including Bahamas, Barbados, Bermuda, Britisl 
Guiana, British Honduras, Jamaica, Leeward Island; 
(.\ntigua, Moutserrat, St. Christopher, Nevis am 
Anguilla, and British Virgin Islands), Trinidad an( 
Tobago, and Windward Islands (Dominica, Grenada 
St. Lucia, St. Vincent), November 2S, 1954. 



Agreement amending and extending naval mission agre< 
ment of 1942 (E.\S 247) as amended (TI.\S 1559; 
Effected by exchange of notes at Rio de Janeiro June 2 
and October 9, 1954. Entered into force October 9, 195- 


Arrangement providing for certificates of airworthlne.' 
for imported aircraft. Effected by exchange of notes i 
Copenhagen De<ember 15, 1954. Entered into force D' 
cember 15, 1054. 

Arrangement providing for reciprocal recognition of ce 
titicates of airworthiness for imported aircraft. B 
fected by exchange of notes at Copenhagen March 12 ar 
24, 1034 (lOAS CO). 
Terminated : December 15, 1954. 


Agreement approving signature sheet to be added to mod 
contract attached to agreement of July 30, 10.54 (TU 
3034) concerning the basic principles and ptilicies go 
erning the offshore procurement program in Greet 
Effected by exchange of notes at Athens October 14 ai 
November 12, 10,54. Entered into force November ] 


Agreement providing for non-occupational insurance f 
injuries and illnesses for Mexican workers, pursuant 
agreement of March 10, 1954 (TIAS 2932). Effected 1 
exchange of notes at Mexico November 19, 1054. E 
tered into force November 19, 1954. 



Edward Corsi as Special Assistant to the Secretary l| 
Refugee and Migration Problems, effective January 
(press release 730 dated December 30). 


Julius (.". Holmes as Special Assistant to the Asslsta 
Secretary for European Affairs, effective December 1 


Department of Stale BulM 

January 10, 1955 


Vol.*,XXXII,«No. 811 

rinciples. Balancing the Books for 1954 


Cambodia. Direct Defense Support for Laos, Cambodia, 

aud Viet-Nam 

Denmark. New Status of Greenland (Johnson) .... 
Economic Affairs 

The American Farmer and Foreign Trade (Thibodeaux) . 
I' s Delegation to Economic Commission for Asia and the 

Far East 

Procedures for Administering Buy American Act (text 

of Executive order) 

Rejection of Higher Duties on Screen-Printed Silk Scarves 


Schedule of Fees on Munitions Shipments Not in Force 

Until April 

U.N. To Convene Conference on Fishery Conservation 

(statement and text of resolution) 

France. Vote by French Assembly on London and Paris 

Accords (Dulles) 

Greenland. New Status of Greenland (Johnson) .... 
International Information. Freedom of Information as a 

Weapon for Peace (Johnson) 

ilnternational Orgranizations and Meetings 
'Preservation of International Metric Standards (Crit- 

U.S. Delegation to Economic Commission for Asia and the 

Far East 

Laos. Direct Defense Support for Laos, Cambodia, and 


IHilitary Affairs. U.S. and U.K. Discuss Extension of Prov- 

Ground for Guided Missiles 

Matnal Security 

(Direct Defense Support for Laos, Cambodia, and Viet-Nam . 

Vote by French Assembly on London and Paris Accords 


Won-Self-Goveming Territories 

i^conomic and Social Progress in Non-Self-Governing Ter- 
ritories (Jackson) 

i Future of Togoland Under U.K. Administration (Smith) . 
Presidential Documents 

Procedures for .\dministering Buy American Act . 
Rejection of Higher Duties on Screen-Printed Silk Scarves . 
State, Department of 

Appointment (Corsi) 

f Designation (Holmes) 

ToEoland. Future of Togoland Under U.K. Administration 


Treaty Information. .Current Actions 

U.S.S.R. Return of Lend-Lease Vessels 

United Kingdom. U.S. and U.K. Discuss Extension of 

Proving Ground for Guided Missiles 

Jnitcd Nations 

Sconomic and Social Progress In Non-Self-Governing Ter- 
ritories (Jackson) 

•"reedom of Information as a Weapon for Peace (John- 

Future of Togoland Under U.K. Administration (Smith) . 67 
Law Commission Asked To Submit Final Eeport on High 

Seas Problems (statement and text of resolution) . . 62 

New Status of Greenland (Johnson) 68 

U.N. To Convene Conference on Fishery Conservation 

(statement and text of resolution) 64 

Viet-Nam. Direct Defense Support for Laos, Cambodia, 

and Viet-Nam 51 

Name Index 

Corsi, Edward 74 

Crittenden, E. C 54 

Dulles, Secretary 43 

Eisenhower, President 50, 52 

Holmes, Julius C 74 

Jackson, CD 69 

Johnson, A. M. Ade . . 58, 68 

Mahoney, Charles H 62 

Nash, James P 64 

Smith, H. Alexander 67 

Thibodeaux, Ben H 45 









Check List of Department of State 
Press Releases: December 27-January2 

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

Press release issued prior to December 27 which 
appears in this issue of the Bulletin is No. 729 of 
December 23. 


Educational exchange. 

Educational exchange. 

Lodge and Dunn nominations; Kem- 
per resignation. 

Extension of proving ground in 

Delegation to ECAFE. 

Effective date of munitions licensing 

Corsi appointment (rewrite). 

Dulles : French vote on WEU. 

Air agreement with 

Defense support for Indochina. 

Educational exchange. 

Dulles : year-end review. 

*Not printed. 

fHeld for a later issue of the Bulletin. 

733 12/30 





















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Vol. XXXII, No. 812 
January 17, 1955 

THE STATE OF THE UNION • Excerpts from Presii 

Eisenhower's Message to the Congress 79 


Correspondence Between the President and the Secretary 
of Defense 87 


Deputy Under Secretary Murphy 84 


FREE WORLD • by Ambassador Edward B. Lawson . . 92 


Statements by A. M. Ade Johnson and James F. Green . . 99 
Text of Resolution 109 

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Vol. XXX 1 1, No. « 1 2 . Publication 5727 
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rhe State of the Union 


Mr. 1'resident, Mr. Speaker, Ladies and Gen- 


My friends, first, I do most sincerely thank you 
rem the bottom of my heart for the cordiality of 
our welcome, and I extend cordial gi'eetings to the 
1th Congress. We shall have much to do to- 
' ether; I am sure that we shall get it done, and 
lat we shall do it in harmony and good will, 
nd here I am certain you will permit me tliis 
lorning a personal allusion. The district where 
was born has been represented in this Congress 
>r more years than he cares to remember, I sup- 
ose, by our distinguished Speaker. Today is his 
irtliday, and I want to join with the rest of you 
I felicitating him and in wishing him many 
ippy returns of the day. 

Now, ladies and gentlemen, at the outset, I be- 
jve it would be well to remind ourselves of this 
eat fundamental of our national life : our com- 
on belief that every human being is divinely 
flowed with dignity and with worth and in- 
ienable rights. This faith, with its corollary — 
at to grow and flourish people must be free — 
apes the interests and the aspirations of every 

From this deep faith have evolved three main 
rposes of our Federal Government : 
First, to maintain justice and freedom among 
rselves and to champion them for others so that 
may work effectively for enduring peace ; 
Second, to help keep our economy vigorous and 
< landing, thus sustaining our international 
s ength and assuring better jobs, better living, 
t ter opportunities for every citizen ; and 
Third, to concern ourselves with the human 

Delivered before a joint session of the Senate and the 
I use of Representatives on Jan. 6 (H. doe. 1, S4th Cong., 
1 sess.). 

problems of our people so tliat every American 
may have the opportunity to lead a healthy, pro- 
ductive and rewarding life. 

It is under these three headings that I shall pre- 
sent to you today, ladies and gentlemen, the 
thoughts that I believe appropriate to this occa- 

Now, foremost among these broad purposes of 
government is our support of freedom, justice, 

It is of the utmost importance, then, that each 
of us understand the true nature of the world 
struggle now taking place. 

It is not a struggle merely of economic theories, 
or of forms of government, or of military power. 
The issue is the true nature of man. Either man 
is the creature whom the Psalmist described as "a 
little lower than the angels," crowned with glory 
and honor, holding "dominion over the works" of 
his Creator; or, man is a soulless, animated ma- 
chine to be enslaved, used and consumed by the 
state for its own glorification. 

It is, therefore, a struggle which goes to the 
roots of the hmnan spirit, and its shadow falls 
across the long sweep of man's destiny. This 
prize, so precious, so fraught with ultimate mean- 
ing, is the true object of the contending forces in 
the world. 

New Bonds of Unity 

In the past year, there lias been progress justi- 
fying hope for the ultimate rule of freedom and 
justice in the world. Free nations are collectively 
stronger than at any time in recent years. 

Just as nations of this hemisphere, in the his- 
toric Caracas and Rio Conferences, have closed 
ranks against imperialistic communism and 
strengthened their economic ties, so free nations 
elsewhere have forged new bonds of unity. 

Jiuory 7 7, J 955 


Recent ajrieiMueiits between Turkey iind Paki- 
stan ha\ e laid a foundation for increased strength 
in the MicKlie East. Witli our nndei-standing sup- 
jKirt, Kgypt and liritain, Yugoslavia and Italy, 
Britain and Iran liave resolved dangerous differ- 
eaices. The security of the Mediterranean has 
been enhanced by an alliance among Greece, Tur- 
key, and Yugoslavia. Agreements in Western 
Europe liave paved the way for unity to replace 

French Action on 
Western Defense Treaties 

statement by the President 

White House press release dated December 30 

The recent series of actions taken by the French 
Assembly is a matter of great gratification, not only 
to the United States but to the entire free world. 

There are, of course, further steps to be taken, 
both in France and elsewhere, before a satisfactory 
foundation for Western defense has been achieved. 
Hut of particular iiuportance is tlie fact that tlie 
French Deputies, after initial hesitations against 
bringing Germany into Western defense arrange- 
ments, have now voted to ratify the new treaties 
signed at I'aris last October. 

The French action is all the more significant since 
it follows the vote on ratification taken last week 
by the Italian Asseml)ly, which approved Western 
defense plans by a decisive majority. 

Once sovereignty is restored to the Federal Re- 
public, with (ierman participation in the North 
Atlantic Treaty Organization, there will be added 
defensive strength and general solidarity in Western 
KuroiK'. As decisive cooperation supplants age-old 
antagonisms, the prospects for a general and lasting 
IJeace will be definitely improved, and a measure of 
encouragement may therefore even now be felt by 
all who are earnestly striving to maintain and im- 
prove the unity and harmony of the free world. 

jiast divisions which have undermined Europe's 
economic and military vitality. Tlie defense of 
the West appears likely at last to include a free, 
denifwratic Germany, i)articipating as an equal in 
the councils of Nato. 

In Asia and the Pacific, the pending Manila 
I'act supi)lements our treaties with Australia, New 
Zealand, the Philippines, Korea and Japan and 
our prospective treaty with the Republic of China. 
The,se pacts stand as solemn warning that future 
military aggression and subversion against the 
free nations of Asia will meet united response. 
The Pacific Charter, also adopted at Manila, is a 

milestone in the development of human freedoiu 
and self-government in the Pacific area. 

Under the auspices of the United Nations, there 
is promise of progress in our country's plan for the 
peaceful use of atomic energy. 

Finally, today the world is at peace. It is, tc 
be sure, an insecure peace. Yet all humanity find^ 
hope in the simple fact that for an appreciable 
time there has been no active battlefield on earth 
This same fact inspires us to work all the mon 
effectively with other nations for the well-being 
the freedom, the dignity, of every human on earth 
In the ultimate achievement of this great purpos 
lies the only sure promise of security and perma 
nent peace for any nation, including our own. 

Communist Reliance on Force 

These developments are heartening. But sobei 
ing problems remain. 

The massive militar}' machines and ambitior 
of the Soviet-Communist bloc still create uneas 
ness in the world. All of us are aware of the coi 
tinning reliance of the Soviet Communists on mi 
itary force, of the power of their weapons, of the 
present resistance to realistic armament limitatioi 
and of their contimiing eliort to dominate or intin 
idate free nations on their periphery'. The 
steadily growing power includes an increasin 
strength in nuclear weapons. This power, con 
bined with the proclaimed intentions of the Con 
nuinist leaders to communize the world, is tl 
threat confronting us today. 

To jirotect our nations and our peoples from tl 
catastrojihe of a nuclear holocaust, free natioi 
must maintain countervailing military power 
persuade the Communists of the futility of sec 
ing to advance their ends through aggression. 
Communist rulers understand that Amerir; 
response to aggression will be swift and decisivi 
that never shall we buy peace at the expense 
honor or faith— they will be powerfully deterni 
from launching a military venture engulfing thf 
own peoples and many others in disaster. Nc 
this, of course, is a form of world stalemate. B' 
in this stalemate each of us — every American 
may and must exercise his high duty to strive 
every honorable way for enduring peace. 

The military threat is but one menace to or 
freedom and security. We must not only detr 
aggression; we must also frustrate the eliort f 
Communists to gain their goals by subversion. ' 


Department of State Bvllef 

this end, free nations must maintain and reinforce 
their coliesion, their internal security, their po- 
litical and economic vitality, and their faith in 
In such a world, America's course is clear : 
We must strengthen the collective defense under 
the United Nations Cliarter and gird ourselves 
with sufficient military strength and productive 
capacity to discourage resort to war and protect 
our Nation's vital interests. 

We must continue to support and strengthen the 
United Nations. At this moment, by vote of the 
United Nations General Assembly, its Secretary 
General is in Connnunist China on a mission of 
ieepest concern to all Americans : seeking the re- 
lease of our never-to-be-forgotten American avia- 
ors and all other United Nations prisoners wrong- 
fully detained by the Communist regime. 

We must also encourage the efforts being made 
n the United Nations to limit annaments and to 
larness the atom to peaceful use. 

We must expand international trade and invest- 
nent and assist friendly nations whose own best 
ifforts are still insufficient to provide the strength 
'ssential to the security of the free world. 

We nuist be willing to use the processes of 
legotiation whenever they will advance the cause 
)f just and secure peace. 
In respect to all these matters, we must, through 
vigorous information progi'am, keep the peo- 
>les of the world truthfully advised of our actions 
lid purposes. This problem has been attacked 
rith new vigor during the past months. I urge 
hat the Congi'ess give its earnest attention to the 
;reat advantages that can accrue to our country 
hrough the successful and expanded operations 
f this information program. 
We must carry forward our educational ex- 
hange program. 
Now, to advance these many efforts, the Congress 
lUst act in this session on appropriations, legis- 
ition, and treaties. Today I shall mention espe- 
ially our foreign economic and military pro- 

conomic Progress 

The recent economic progress in many free na- 
ons has been heartening. The productivity of 
bor and the production of goods and services 
•e increasing in ever-widening areas. There is 
growing will to improve the living standards of 
1 men. This progress is important to all our 

muary 17, 7955 

people. It promises us allies who are strong and 
self-reliant; it promises a growing world market 
for the products of our mines, our factories, our 

But only through steady effort can we continue 
this progress. Barriers still impede trade and the 
flow of capital needed to develop each nation's 
human and material resources. Wise reduction 
of these barriers is a long-term objective of our 
foreign economic policy — a policy of an evolution- 
ary and selective nature, assuring broad benefits 
to our own and to other peoples. 

We must gradually reduce certain tariff ob- 
stacles to trade. These actions should, of course, 
be accompanied by a similar lowering of trade 
barriers by other nations, so that we may move 
steadily together toward economic advantage for 
all. We must further simplify our customs pro- 
cedures. We must facilitate tlie flow of capital 
and continue technical assistance, both directly 
and through the United Nations. This must go 
to less developed countries to strengthen their in- 
dependence and raise their living standards. 
Many another step must be taken in the free world 
to release forces of private initiative. 

On January 10, by special message, I shall sub- 
mit specific recommendations for carrying for- 
ward the legislative phases of our f oreigii economic 

Maintenance of Military Strength 

Our many efforts to build a better world include 
the maintenance of our military strength. Tiiis 
is a vast undertaking. Over 4 million Ameri- 
cans — servicemen and civilians — are on the rolls 
of the Defense Establishment. During the past 2 
yeai-s, by attacking duplication and overstaffing, by 
improved procurement and inventory controls, by 
concentrating on the essentials, many billions of 
dollars have been saved on these defense activities. 
I should like to mention certain fundamentals un- 
derlying this vast program. 

First, I repeat that a realistic limitation of 
armaments and an enduring, just peace remain 
our national goals; we maintain powerful military 
forces because there is no present altemative — 
they are forces designed for deterrent and de- 
fensive purposes, able instantly to strike back with 
destructive power in response to any attack. 

Second, we must stay alert to the fact that un- 
due reliance on one weapon or preparation for 


only one kind of warfare simply invites an enemy 
to i-esort to another. We must, therefore, keep 
in our Armed Forces balance and flexibility ade- 
quate to our needs. 

Third, to keep our Armed Forces abreast of the 
advances of science, our military planning must 
be flexible enough to utilize the new weapons and 
techniques which flow ever more speedily from our 
research and development programs. The forth- 
coming military budget therefore emphasizes 
modern airpower in the Air Force, Navy, and 
Marine Corps and increases the enipiiasis on new 
weapons, especially of rapid and destructive 
striking power. 

It seeks continuous modernization of our Army. 
It accelerates the continental defense program and 
the buildup of military reserve forces. It con- 
tinues a vigorous program of stockpiling strategic 
materials and strengthening our mobilization base. 
It provides for reduction of forces in certain 
categories and their expansion in othere, to fit 
them to the military realities of our time. These 
emphases in our defense planning have been made 
at my personal direction after long and thought- 
ful — even prayerful — study. In my judgment, 
they will give our Nation a defense acciirately 
adju.sted to the luitional need. 

Fourth, i)cnding a world agreement on arma- 
ment limitation, we must continue to expand our 
supplies of nuclear weapons for our land, naval, 
and air forces. We shall continue our encourag- 
ing progress, at the same time, in the peaceful use 
of atomic power. 

Fifth, in the administration of these costly 
programs, we demand the utmost efficiency. We 
must assure our people not only of adequate pro- 
tection but also of a defense that can and will be 
resolutely carried forward from year to year until 
tlie threat of aggression has disappeared. 

To help maintain this kind of armed strength 
and to improve its efficiency, I urge the enactment 
of several important measures. 

The first concerns the Selective Service Act 
which expires next June 30. For the foreseeable 
future, our standing forces must remain much 
larger than voluntary methods can sustain. We 
must, therefore, extend the .statutory authority to 
induct men for 2 years of military service. 

The second kin<l of measure concerns the rapid 
turnover of our most experienced servicemen. 
This process seriously weakens the combat read- 
iness of our Armed Forces and is unnecessary and 


extravagantly expensive. To encourage more | 
trained servicemen to remain in uniform, I shall, 
on the 13th of this month, propose a number of 
measures to increase the attractions of a military 
career. These measures will include more ade- i 
quate medical care for dependents, survivors' 
benefits, more and better housing, and selective 
adjustments in military pay and allowances. 

And, third, I shall present a program to i-ebuild 
and strengthen the civilian components of oui 
Armed Forces. Because it will go far in assurin| 
fair and equitable participation in military serv 
ice, it is of particular importance to our comba' '_ 
veterans. In keeping with our historic militar 
policy, the program is designed to build civiliai 
reserves capable of effective military service in ai 
emergency in lieu of maintaining active forces ii 
excess of the Nation's immediate need. 

Through this progi-am the individual will b 
able to discharge one of his obligations to the N;i 
tion ; equally, the Nation will be able to discharjz 
one of its obligations to a potential future servict 
man; namely, to give him the greatest possibl 
chance of survival in time of war. 

An effective defense requires continuance of ou 
aggressive attack on subversion at home. In thi 
effort we have, in the past 2 years, made real proi 
ress. FBI investigations have been reinforced 1' 
a new Internal Security Division in the Depart 
ment of Justice ; the security activities of the In 
migration and Naturalization Service have bee 
revitalized; an improved security system is i 
effect throughout the Goverment ; the Departmer 
of Justice and the FBI have been armed with nc 
legal weapons forged by the 83d Congress. 

We shall continue to ferret out and to destro 
Communist subversion. 

We shall, in the process, carefully preserve ou 
traditions and the basic rights of every America 

Our civil defense progi'am is also a key elemer 
in the protection of our country. We are develo] 
ing cooperative methods with State governor 
mayors, and voluntary citizen groups, in build 
ing the civil defense. The significance of this oi 
ganization in time of war is obvious; its swif 
assistance in disaster areas last year proved it 
importance in time of peace. 

An industry capable of rapid expansion an 
essential materials and facilities available in tim 
of emergency are indispensable. I urge, therefon 
a 2-year extension of the Defense Production A( 

Department of State BuUefi' ^ 

aiid title II of the First War Powers Act of 1941. 
These are cornerstones of our program for the de- 
velopment of an adequate mobilization base. 


At this point, I should like to make this addi- 
tional observation. 

Our quest for peace and freedom necessarily 
presumes that we who hold positions of public 
trust, must rise above self and section — that we 
must subordinate to the general good our partisan 
ind our personal pride and prejudice. Tirelessly, 
svith united purpose, we must fortify the material 
md spiritual foundations of this land of freedom. 
A.S never before, there is need for unhesitating co- 
)peration among the branches of our Government. 

At this time the executive and legislative 
•jranches are under the management of different 
Dolitical parties. This fact places both parties on 
rial before the American people. 

In less perilous days of the past, division of 
governmental responsibility among our great par- 
ies has at times produced indecision approaching 
"utility. We must not let this happen in our time. 
We must avoid a paralysis of the will for peace 
md international security. 

Now in the traditionally bipartisan areas — mili- 
ary security and foreign relations — I can report 
.0 you that I have already, with the present lead- 
)rs of this Congress, exchanged assurances of un- 
I 'eserved cooperation. Yet, the security of our 
j lountry requires more than maintenance of mili- 
ary strength and success in foreign affairs; these 
dtal matters are in turn dependent upon concerted 
md vigorous action in a number of supporting 

I say, therefore, to the 84th Congress: 

In all areas basic to the strength of America, 
here will be — to the extent I can insure them — 
iooperative, constructive relations between the ex- 
cutive and legislative branches of this Govern- 
Qent. I^t the general good be our yardstick on 

every great issue of our time. In that pledge I 
should include, also, the similar pledge of every 
head of department or independent agency in this 

Tile Faith of Our People 

And now, I return to the point at which I be- 
gan — the faith of our people. 

The many programs here summarized are, I 
believe, in full keeping with their needs, interests, 
and aspirations. The obligations upon us are 
clear : 

To labor earnestly, patiently, prayerfully, for 
peace, for freedom, for justice, throughout the 
world ; 

To keep our economy vigorous and free, that 
our people may lead fuller, happier lives ; 

To advance, not mei'ely by our words but by our 
acts, the determination of our Government that 
every citizen shall have opportunity to develop to 
his fullest capacity. 

As we do these things, before us is a future filled 
with opportunity and with hope. That future 
will be ours if, in our time, we keep alive the 
patience, the courage, the confidence in tomorrow, 
the deep faith of the millions who, in years }>ast, 
made and preserved us this Nation. 

A decade ago, in the death and desolation of 
Em-opean battlefields, I saw the courage and reso- 
lution, I felt the inspiration, of American youth. 
In these young men I felt America's buoyant confi- 
dence and irresistible will to do. In ihem I saw, 
too, a devout America, humble before God. 

And so, I know in my heart— and I believe that 
all Americans know — that, despite the anxieties 
of this divided world, our faith, and the cause in 
which we all believe, will surely prevail. 

And now, my friends, my apologies for the 
length of this address, and thank you for your 
great courtesy. 

anuory 17, 1955 


Labor's Concern with Foreign Affairs 

by Deputy Under Secretary Murphy ' 

It is both an honor and a pleasure to be here 
today as the gue^t of the Italian-American Labor 
Council. The honor lies in the opportunity to 
join this distinguished group of foreign and 
American leaders in paying tribute to Matthew 
Woll on tlie eve of his 75th birthday. The pleas- 
ure is in seeing many friends both old and new 
at this congenial gathering. 

Man}' of you have known Matthew Woll far 
longer than I and at closer range. To tell you of 
his stalwart and continuing seiTice as Vice Presi- 
dent and member of the Executive Council of the 
American Federation of Labor and as Chairman 
of the International Eelations and Free Trade 
Union Committees would be belaboring a theme 
with which you are all familiar. Nor need I re- 
peat to you how liis leadership as an officer of the 
Photo-Engravers Union has contributed to the 
solidity of that staunch union. 

From my vantage point in the middle distance 
I can, however, gain a certain perspective on tlie 
contribution he has made in the 64 years since he 
came America's way — and since America very 
shortly thereafter came his way. I see him as a 
living symbol of American labors interest and 
participation in international atfairs. By this 1 
don't just mean his committee work and his work 
as a delegate to international labor conferences, 
noteworthy as this has been. Matthew Woll's 
interest in international affairs, and indeed that 
of the American Federation of Labor as a wiiole, 
is far from limited to the labor aspects alone. 
He has recognized the deep and sustaining place 
of labor as a constant element of world society. 
Because of this place he has regarded the whole 

'Addrew* made before the Italian-.'Unerican Labor 
Council at New York, N. Y., on Jan. 8 (press release 10 
dated Jan. T). 

area of foreign policy rightly as the concern of 

labor, and he has felt free to comment accordingly. 

I know because I have been on the receiving endi 

from time to time. 

Free Labor Essential to Democracy 

Let me say right here that the Department of 
State encourages such interest, and if we are oc- 
casionally hard pi'essed by questions, that is 
healthy too. Free labor is an essential element of 
the democratic framework. More and more, labor 
has come to accept and play its role in the develop- 
ment of the institutions of democracy the world 
over. We all know that where there is no democ- 
racy — or where democracy is on the run — the 
unions are among the first to feel the pressure. 

It is common knowledge that the so-called trade . 
unions of the Soviet world are mere instruments i 
of the state. You know and we know that control 
of the trade unions is a prime target of the Soviet 
conspiracj' and a focal point for subversive ac- 
tivity by their agents. In contemporary history ■ 
the Commmiist coup in Czechoslovakia is a glar- 
ing example of this technique. You will recall 
that this revolt was achieved in large measure 
from within — by the cancer of subve reive takeover 
of the trade unions. 

I know that the leaders of American labor are 
fully aware of this type of malignancy. The fact 
that the American labor movement sees eye to eye 
with the Department of State on the threat of 
Communist imperialism and on so many other 
basic elements of foreign policy is a source of 
gratification. I know that American labor has 
lent financial and spiritual assistance to tiie sup- 
port of the democratic elements of trade union> 
abroad, so that they could in turn fight the good 
fight against Communist infiltration and maintain 


Deparlment of State Bulletin 

their freedom, their independence, and their in- 
tegrity. Matt Woll has been in the forefront of 
this crusade. The Italian- American Labor Coiua- 
cil has also done a splendid service in alerting 
Italo-Americans to this danger in their mother 
ciiuntry and tlirough them giving support to the 
democratic forces in Italy. 

I salute both Council and guest of honor for 
their work. 

It is hard to place too much stress on the im- 
portance of an informed and alert trade union 
movement to the conduct of our foreign policy. 
Fin- no matter how well conceived our foreign 
policy may be, its success is dependent in large 
measure on our internal strength. American labor 
is a vital component of this strength and provides 
;iu indispensable source of vigor and support 
wliich enables our Government to conduct its rela- 
' tions with other nations to the best advantage of 
our people. 

Now I want to revert to my main theme, which 
is that foreign affairs is the intimate concern of 
labor. In recognition of this I would like to com- 
ment briefly on the state of our relations with the 
rest of the world in this first month of a new 
year of great moment. 

Progress in 1954 

Nineteen fifty-four was an anxious year, but it 
ended up as a year of sound progress in the cause 
of peace and security. In his press conference on 
the last day of 1954, Secretary of State Dulles 
highlighted the progress while freely admitting 
the setbacks. This is the way he put it : - 

Most of all this gain has been In the demonstrated 
capacity of the free nations to develop, cooperatively, 
their uuity and strength. As a result, the danger of 
general war recedes. 

One setback has been the Indochina Armistice .... 
But out of this setback there has come the Manila 
Pact, which, if adequately implemented, can limit the 
scope and consequences of the loss. 

.\nother setback was the defeat in France of the 
European Defense Community. But out of that has 
come the plan for Western European Union which re- 
produces much of the good contained in the Edc. 

So out of bad has come good; out of a measure 
of failure has come, if not yet complete success, at 
least the promise of greater success. 

Perhaps one reason why labor and government 
have been in close agi'eement on foreign policy is 

■ 'Bulletin of Jan. 10, 1955, p. 43. 
it January 17, 1955 

that the operating principle in international rela- 
tions has closely resembled a principle which the 
trade unions have been applying for years. Tliat 
is the pi'inciple of collective security. When 
organizations share the same principle they are 
apt to be sympathetic. You labor men band to- 
gether and you bargain for the well-being of the 
working man in much the same way our Govern- 
ment bargains and unites with other nations 
against a common danger. 

Let me emphasize that there are many hazards 
still ahead. But the heartening sign has been 
that the free nations of the world, in the case of 
each of the two setbacks listed by the Secretary of 
State, closed the ranks and made a forward step 
together. Wlien this happens, the Communist 
threat is turned aside; the Communist lies and 
outcries fall on deaf ears. 

In both of these historic events the United 
States played the part of good partner and helpful 
ally. After the collapse of Edc, you will recall, 
Mr. Dulles took with him to London no specific 
proposals but the willingness to go along with any 
workable formula that was presented by the na- 
tions of Western Europe, whose immediate and 
vital concern it was. This held true at the time of 
the Manila conference, when eight nations, Asian 
and non-Asian, signed a pact against aggression 
and subversion. The story of the collapse of the 
Edc and the anxious weeks which followed it has 
been in the headlines for months. It was a time 
of historic concessions and statesmanlike coopera- 
tion, especially on the part of England and Ger- 
many and France. The world literally held its 
breath until ratification by the French Assembly 
last week removed one of the last major obstacles 
to the return of Germany to her sovereign place 
and responsibility among the Western European 

Mutual Defense in Asia 

The situation in Asia has been less in the fore- 
front of the news. The Manila treaty put new 
heart into the defense of Southeast Asia and threw 
a mantle of protection over the new states of Laos 
and Cambodia and southern Yiet-Nam. The 
treaty was a great landmark in collective security 
in Asia. But there have been others. The de- 
fensive treaty with the Kepublic of China, also 
awaiting approval at the new session of Congress, 
is the latest example. You will recall that we also 


have bilatenil defensive treaties with Japan and 
Korea. And, far across the vast continent, there 
is forming what is known as the "Northern Tier" 
defense line. An agreement between Turkey and 
Pakistan to discuss mutual defense needs was the 
beginning here. But the desires of the nations 
involved will have to govern any pact that de- 
velops. We do not seek to impose any system of 
collective security on any country. 

This is in keeping with our good-partner role. 
It is also in keeping with the fierce determination, 
especially among the new-born Asian nations, to 
preserve their hard-won independence against any 
infringement. This determination, coupled with 
a lingering fear of the old colonialism, is — if I 
make a sweeping generality — perhaps the deepest 
motivating force in the new Asia, and one which 
we must never forget. 

It found eloquent expression in the Manila 
charter which was signed at the same time as the 
treaty. This charter proclaimed the dedication of 
the eight signatories to the independence and self- 
government of all peoples everywhere who are able 
to discharge the responsibilities. 

Words Are Not Enough 

Words are wonderful and have changed the 
course of history. But words alone, even the 
ringing words of the Pacific Charter, are not 
enough. The Asian nations, emerging from the 
long twilight of colonialism, will be watching us 
every step of the way. Despite our good faith, 
which we have demonstrated in many ways, such 
as in the case of the Philippines, they look for con- 
tinuing proof that we do not practice a kind of 
benevolent economic colonialism that is quite a 
good deal better than the brutal Connnunist 
brand — but is still colonialism to them. 

The coming Bangkok meeting of the Manila 
treaty nations marks the forward step to imple- 
ment that treaty and also to show that the ringing 
words of the charter have substance. I take pleas- 
ure in the fact that the meeting is in Thailand, an 
ancient Asian country whose security is so directly 

A major problem in Asia is that of communica- 
tion. Words are not enough ; the word must be 
passed. The fact that wo are against colonialism 
is all well and good, but the Asians must be con- 
vinced of tlii.s. The truth about Ajnerica must 
be told. 

Let me give you an example which I consider 
illuminating. Last fall at Damascus a trade fair 
took place in which the Soviet participation fax 
exceeded ours in cost and magnitude. The Soviet 
pavilion was an impressive affair complete with 
statues of Stalin and Lenin and the rest. Our 
contribution was Cinerama, and it stole the show. 
The struggle for tickets was tremendous — the 
Arabs came from hundreds of miles around to 
see this new wonder. Thousands saw America 
unfold and were impressed. The American news- 
papers reported a major propaganda triumph in 
the cold war. 

But there is another side to this story. To 
build the Russian pavilion, 1,200 workers were 
hired. They were paid 10 pounds for an 8-hour 
day in contrast to the normal 2-3 pounds which 
woi"kers on other pavilions received. Overtime 
was generous and medical care good. In con- 
trast to Cinerama, the end product of this was not 
too satisfactory. The Russian wares, consisting 
mostly of candy and of rather dated-looking cars, 
went largely unnoticed in the rush for Cinerama. 

But some of the workers were inevitably im- 
pressed. The press was not fooled, and I quote 
from one leading Syrian newspaper : 

This is a sample of the unsuccessful Communist propa- 
ganda which has been felt by each one of us easterners. 
The Russians pay fabulous wages for workers abroad 
and enslave their own workers at home. They show gen- 
erosity and hospitality on the outside but Impose misery 
on the inside .... 

But many of the workers in Syria do not read. 
The short hours and the extra money made their 
mark. I think this is worth remembering. In the 
long run the truth prevails, but lies and illusions 
sometimes strike home. Some of those workmen 
said to themselves : "If this is the way they treat 
you in Russia, I'm for them." 

We Americans are interested in truth. "We 
want the American way of life shown and known 
abroad for what it is, not what it pretends to be. 
Our enlightened self-interest and sense of partner- 
ship with the other free nations must be told and 
told again. 

Many of you here, like our distinguished guest 
of honor, have played notable parts telling the 
American story abroad and in exposing the true 
natui'e of the Communist claims and pretensions 
with regard to their concern for the worker. 

We need your continuing help in the struggle 
that still lies ahead. 


Department of Sfafe Bulletin 

Adapting U.S. Military Strength 
To IVleet Changing World Conditions 

White House press release dated January 5 

Following^ is an exchange of correspondeiice be- 
\[ iween the President and the Secretary of Defense. 

')' iecretary Wilson to the President 

] January 3, 1955 

De^vr Mr. PREsroENT : For nearly two years we 
lave discussed the various problems relating to 
he armed services and in particular the need for 
he conservation and proper utilization of our 
iianpower, both military and civilian. Just be- 
ore Christmas you again discussed the question 
if personnel strengths with me and the Joint 
chiefs of Staff. 

. I have found so much value in the views under- 
ying your decisions as to the personnel strengths 
f the armed services that I wonder if you would 
ive me the gist of them in written form. I should 
ike very much to have them available during the 
ext year to guide me in my consideration of those 
latters and to be able to make them available to 
11 of the interested people who are considering 
his problem. 
With great respect, I am 
Faithfully yours, 

CHAKtEs E. Wilson 

lie President to Secretary Wilson 

January 5, 1955 
Dear Mr. Secretary: Responding to your re- 
uest I shall, in this note, briefly summarize the 
iews on our general needs in military strength, 
icluding personnel, that I expressed verbally to 
ou and the Joint Chiefs of Staff in December. 
'eedless to say, these convictions on how best to 
reserve the peace were formed after earnest con- 
deration of the oral and written views of our 
lilitary advisers. 

' In approaching this problem, we should keep 
7er before us the realization that the security of 
le United States is inextricably bound up with 
le security of the free world. For this reason, 
le of our tasks is to do everything possible to 
remote unity of understanding and action among 
le free nations so that each may take its full and 
roper part in the cooperative process of estab- 
shing a lasting and effective security. 

Certain considerations, applying more specif- 
ically to our own country's military preparations, 
are these : 

First, the threat to our security is a continuing 
and many-sided one — there is, so far as we can 
determine, no single critical "danger date" and no 
single form of enemy action to which we could 
soundly gear all our defense preparations. We 
will never commit aggression, but we must always 
be ready to defeat it. 

Second, true security for our country must be 
founded on a strong and expanding economy, 
readily convertible to the tasks of war. 

Third, because scientific progress exerts a con- 
stantly increasing influece upon the character and 
conduct of war, and because America's most pre- 
cious possession is the lives of her citizens, we 
should base our security upon military formations 
which make maximum use of science and tech- 
nology in order to minimize numbers in men. 

Fourth, due to the destructiveness of modem 
weapons and the increasing efficiency of long- 
range bombing aircraft, the United States has 
reason, for the first time in its history, to be deeply 
concerned over the serious effects which a sudden 
attack could conceivably inflict upon our country. 

Our first objective must therefore be to main- 
tain the capability to deter an enemy from attack 
and to blunt that attack if it comes — by a combi- 
nation of effective retaliatoi-y power and a con- 
tinental defense system of steadily increasing 
effectiveness. These two tasks logically demand 
priority in all planning. Thus we will assure that 
our industrial capacity can continue throughout a 
war to produce the gigantic amounts of equipment 
and supplies required. 

We can never be defeated so long as our relative 
superiority in productive capacity is sustained. 

Other essential tasks during the initial period 
following a possible future attack would require 
the Navy to clear the ocean lanes, and the Army 
to do its part in meeting critical land situations. 
Our forces in Nato and elsewhere could be 
swiftly engaged. To maintain order and organi- 
zation under the conditions that would prevail in 
attacked areas of our country would of itself con- 
stitute a major challenge. Improved Reserve 
programs would help greatly — in fact might prove 
the decisive margin — in these as in other major 

inoary 17, 1955 


To provide for meeting lesser hostile action- 
such us local aggression not broadened by the in- 
tervention of a major aggressor's forces— growing 
reliance can be placed upon the forces now being 
built and strengthened in many areas of the free 
world. l?ut because this reliance cannot be com- 
plete, and because our own vital interests, collec- 
tive security and pledged faith might well be in- 
volved, there remain certain contingencies for 
which the United States should be ready with 
mobile forces to help indigenous troops deter 
local aggression, direct or indirect. 

In view of the practical considerations limiting 
the rapid deployment of large military forces from 
the continentalUnited States immediately on out- 
break of war, the numbers of active troops main- 
tained for this purpose can be correspondingly 
tailored. For the remainder we may look pri- 
marily to our Reserves and our mobilization base, 
including our stockpile of critical materials. 

All these capabilities have a double value— they 
.serve our aim in peacetime of preventing war 
through their deterrent effect ; they form the foun- 
dation of effective defense if aggressors should 

Both in composition and in strength our secu- 
rity arrangements must have long-term appli- 
cability. Lack of reasonable stability is the most 
wasteful and expensive practice in military ac- 
tivity. We cannot afford intermittent accelera- 
tion of preparation and expenditure in response to 
emotional tension, inevitably followed by cutbacks 
inspired by wishful thinking. Development of 
sound, long-term security requires that we design 
our forces so as to assure a steadily increasing 
efficiency, in step with scientific advances, but 
characterized by a stability that is not materially 
disturbed by every propaganda effort of un- 
friendly nations. 

It is, of course, obvious that defensive forces in 
America are maintained to defend a way of life. 
They must be adequate for this purpose but must 
not become such an intolerable burden as to occa- 
sion loss of civilian morale or the individual initia- 
tive on which, in a free country, depends the dy- 
namic industrial etTort which is the continuing 
foundation of our nation's security. 

It is at this point that professional military 
competence and political statesmanship must join 
to form judgments as to the minimum defensive 
structure that should be supported by the nation. 


To do less than the minimum would expose the 
nation to the predatory purposes of potential 
enemies. On the other hand, to build excessively 
under the impulse of fear could, in the long run, 
defeat our purposes by damaging the growth of 
our economy and eventually forcing it into regi- 
mented controls. 

It is for the reasons so briefly touched upon 
above that I have decided to present to the Con- 
gi-ess, on behalf of the Administration, a program 
which has been under development during th( 
past two years. That program contemplates ar 
active personnel strength of the Armed Forces al 
June 30, 1955, of approximately 3,000,000, withii 
which the Air Force will be increased to abou 

Experience will determine to what extent t\v 
personnel strengths set for June 1955 can be fur 
ther reduced. It would not be wise at this time ti 
fix rigid targets for 1956. As a goal, I suggest ; 
strength of the order of 2,850,000— with any fur 
ther material reductions dependent upon an im 
proved world situation. To reach such figure 
without injuring our combat strength will requir 
continuing close scrutiny of all defense elements 
with particular empliasis on administrative over 

Essential to this entire program is economy ii 
operation. If we are to support active and effec 
tive forces of the order indicated over a perioi 
which may last for decades, we must practice 
strict austerity in day-to-day operations. Thi 
is an insistent and constant mission of every re 
sponsible official, military and civilian, in the De 
fense Department. 

In this time of rapidly developing technolog 
and frequent changes in the world situation, w 
should in our efforts for peace and security cor 
tinuously re-shape our programs to changing cor 
ditions and avoid fixed or frozen ideas. Th 
thi-eat of modern war calls for constant moderi 

Since your request to me and this reply bot 
deal with mattere on which our citizenry ought t 
be as fully informed as considerations of securit 
permit, I am directing the public release of the tw 


DwuiiiT D. Eisenhower ' 
Deparfmenf of Sfafe BuUeti 

NATO Infrastructure Program 

The following xoas released to the press at Paris 
iy the NATO information division on December 

The North AtUmtic Treaty Organization has 
approved an £81 million infrastructure program 
for the year of 1955. This is part of the £700 
million infrastructure program, of which £650 
million has so far been authorized for specific 
Nato projects during the past 5i/^ years. 

The 1955 program was approved by the North 
Atlantic Council under authority granted by the 
Foreign Ministers in April 1953. At that time 
the member governments designated £250 million 
of the £700 million total for a 3-year, cost-shared 
progi-am, of which this is the second year, and 
■ delegated authority to the Council of Permanent 
Representatives for disposal of these funds. Un- 
der this authority the Permanent Council, after 
reviewing the military requirements submitted by 
Greneral Alfred M. Gruenther, Supreme Allied 
Commander, Europe, and Admiral Jerauld 
W^right, Supreme Allied Commander, Atlantic, 
decides upon the annual infrastructure program. 
Ajiproximately 40 percent of the 1955 infra- 
structure budget will be used for construction of 
vdditional airfields and for improvement of exist- 
ing airfields; 25 percent is for Nato additions to 
laval base and fleet facilities; 20 percent will be 
ased to expand the oil pipeline system which al- 
ready represents a £76 million Nato investment; 
I :elecommunications, a familiar item in infrastruc- 
ture planning, account for 10 percent of the budg- 
et; the remaining 5 percent will finance construc- 
ion of radar warning installations, radio 
lavigational aids, and headquarters. 

During 1954 £100 million of infrastructure con- 

^ruction was launched. By the end of this year, 

hrough the infrastructure mechanism, 132 Nato 

lirfields will have been made available for use as 

leeded by Nato; this represents the continuing 

'mprovement of 120 airfields already usable in 

953, so that they are equipped to handle any 

' lewly developed type of Nato fighter plane, plus 

; ompletion of 12 additional airfields. 

During the i^resent year eight Nato countries 
tarted work on the vast pipeline system. This 
iroject of some 6,000 kilometers of pipe, complete 
dth i^umping stations, storage facilities, etc., has 
•rogressed from the stage of planning and engi- 

onuory 77, 1955 

neering into that of execution. It calls for a Cen- 
tral European network of pipelines with ports on 
both the Channel and Mediterranean coasts in 
order that the system can be supplied by the tanker 
fleets of the Nato nations. The system itself is 
equipped to handle several types of fuel. Its mag- 
nitude can best be illustrated by the contemplated 
rate of flow, which is equivalent to the uninter- 
rupted movement of 70 complete tanker trains. 

Telecommunications built under Nato common 
infrastructure auspices to meet military require- 
ments have, at present, increased civilian facilities 
tremendously. These same facilities are, of course, 
completely available for military use in the event 
of emergency. Experts in this field estimate that 
the European national plans and programs for 
the improvement of communications systems have 
been advanced by 10 to 15 years through the Nato 
program. To date over £85 million of the £120 
million total designated for this purpose has been 

The cooperation of the 14 Nato Governments 
has been largely responsible for the success of the 
infrastructure jjrogram to date. Potential waste 
or duplication of effort has been virtually avoided 
due to an established procedure of screening, by 
experts, item by item authorization by commit- 
tees of the Council, joint civilian and military in- 
spections and fuial auditing, in full cooperation 
with the military establishment. The comprehen- 
sive system of budgetary control assures that 
essential military requirements are met with min- 
imum expense to the Allies, and, in turn, the co- 
operation of member governments in forwarding 
each project has assured that standards estab- 
lished through the Nato mechanism are met. The 
jDrinciple of opening infrastructure construction 
contracts to international competitive bidding has 
also tended to reduce cost, improve quality, and 
implement the objectives of article 2 of the North 
Atlantic Treaty. 

Foreign Ministers of Manila Pact 
Countries To Meet at Bangitok 

Press release 2 dated January 3 

The Governments of Australia, France, New- 
Zealand, Pakistan, the Philippines, Thailand, the 
United Kingdom, and the United States made 
clear, in signing the Manila Pact and the Pacific 
Charter, their determination to cooperate closely 



in order to contribute to the peace and security of 
Southeast Asia and the Southwest Pacific. In 
furtherance of this purpose, the foreign ministers 
of the signatory governments have agreed to meet 
on February 23. They have accepted with pleas- 
ure the invitation of the Government of Thailand 
to hold this meeting at Bangkok. 

The purpose of the meeting will be to consider 
arrangements for the implementation of the 
Manila treaty and to exchange views on matters 
affecting the peace and security of the treaty area. 

Ending of Combatant Activities 
in Korea and Adjacent Waters 

Executive Order 10585 < 

Designating the Date of Teemination of Combatant 
Activities in Korea and Waters Adjacent Theketo 

By virtue of the authority vested in me by section 112 
(c) (3) of the Internal Revenue Code of 19.'54, January 
31, 1955, as of midnight thereof, is hereljy designated as 
the date of termination of combatant activities in the 
zone comprised of the area described in Executive Order 
No. 10195 of December 20, 1950 (15 F. R. 9177).' 


C-*.*-^ Z-/>C-/ C>-<-t-,-. X«/»<*^ 

The White House, 
January 1, 1955. 

Japanese-American Orplians 
To Be Admitted to U.S. 

The Department of State announced on January 
4 (press release 4) that 15 Japanese-American 
orphans would soon enter the United States, under 
provisions of the Refugee Relief Act, to become 
adopted sons and daughters of families who 
learned of their J)light through the National Cath- 
olic Welfare Conference and the American Joint 
Committee in Tokyo. 

The 5 girls and 10 boys, wliose American fath- 
ers and Japanese mothers were unable or unwill- 
ing to care for them, have spent their lives so far 
at Our Lady of I^urdes baby home at Yokohama, 
under supervision of Catholic Sisters. 

They range in age from 2 to 8 years. They will 
have homes in eight diflFerent States. All have 

' 20 Fed. Reg. 17. 

' nrujrnN of .Ian. 22, 1951, p. 149. 

been taught English words in recent weeks so that ' 
they may be able to understand their new fathers 
and mothers. ^Vhile some Japanese-American 
orphans have been adopted by Americans who 
were in Japan, these 15 have been chosen by fami- 
lies in the United States on the basis of informa- 
tion of welfare agencies. Most of them have not 
seen the Americans who are offering them homes 
and family care in the country of their true fath- 
ers. The special nonquota visas under the Refu- i 
gee Relief Program were issued to the children 
during the Christmas season at the U.S. Consulatt 
General at Yokohama. Under the Refugee Re- 
lief Act of 1953 there is provision for the admis- 
sion to the United States of 4,000 orphans, ovei 
and above the quotas of the regular immigratioi 

Compensation to Japanese for Damag< 
Resulting From Nuclear Tests 

Press release 6 dated January 4 

Following are the texts of notes exchanged a 
Tokyo on January 4 hy Ambassador John M 
Allison and Japanese Deputy Prime Minister am 
Foreign Minister Mamoru ShigemAtsu. 
U.S. Note 

I have the honor to refer to our recent convetl 
sations regarding compensation for Japanese na| 
tionals who sustained personal and property dam 
age as a result of nuclear tests in the Marshal 

Your Excellency knows of the deep concern ant 
sincere regret the Government and people of fihi 
United States of America have manifested ova 
the injuries suffered by Japanese fishermen in tb 
course of these tests, and of the earnest hopes hel( 
in the United States for the welfare and well-beinj 
of these injured fishermen. The Government o 
the United States of America has made cl 
that it is prepared to make monetary compe; 
tion as an additional expression of its concern 
regret over the injuries sustained. 

I now desire to inform Your Excellency that th' 
Government of the United States of Americi 
hereby tenders, ex gratia, to the Govenmient o 
Japan, without reference to the question of lega 
liability, the sum of two million dollars for pur 
poses of compensation for the injuries or damage 
sustained as a result of nuclear tests in th' 
Marsliall Islands in 1954. 





Department of State Bulleth 

The Government of the United States of Amer- 
ica understands that the tendered sum will be dis- 
tributed in such an equitable manner as may be 
determined in the sole discretion of the Govern- 
ment of Japan, and also wishes to observe that 
this sum includes provision for a solatium on be- 
half of each of the Japanese fishermen involved 
and for the claims advanced by the Government 
of Japan for their medical and hospitalization 

It is the understanding of the Government of 
the United States of America that the Government 
of Japan, in accepting the tendered smn of two 
million dollars, does so in full settlement of any 
and all claims against the United States of Amer- 
ica or its agents, nationals, or juridical entities, 
on the part of Japan and its nationals and juridical 
' entities for any and all injuries, losses, or damages 
arising out of the said nuclear tests. 

I should appreciate it if Your Excellency would 
inform me whether the sum tendered herein is 
acceptable to your Government and whether the 
above understanding of my Government is also the 
understanding of your Government. In the event 
such sum is acceptable, I have the honor to propose 
that this note and Your Excellency's reply accept- 
ing the tendered sum shall be considered a con- 
firmation of these mutual understandings of our 

Accept, Excellency, the renewed assurances of 
my most distinguished consideration. 

Japanese Note 

I have the honour to refer to Your Excellency's 
note of this date, regarding compensation for Jap- 
anese claims arising out of nuclear tests in the 
Marshall Islands, which reads as follows : 

[Text of U. S. note] 
I have the honour to inform Your Excellency 
that the sxun tendered is acceptable to the Govern- 
ment of Japan and receipt thereof is hereby ac- 

knowledged. I have further the honour to inform 
Your Excellency that the above understanding 
of your Government is also the understanding of 
my Government and that Your Excellency's note 
and this reply accepting the tendered sum shall 
be considered a confirmation of these mutual 
understandings of our Governments. 

I avail myself of this opportunity to renew to 
Your Excellency, Monsieur I'Ambassadeiur, the 
assuriuice of my highest consideration. 

Death of President of Panama 

statement by the President 

White House prebG release dated January 3 

I was grieved to learn of the tragic assassination 
of President Jose Antonio Remon of Panama. A 
firm friend. President Remon was held in great 
respect by the Government of our Nation. Only 
last year he and Seiiora Remon were visitors at the 
White House.^ 

To Seiiora Remon, to the new President Guizado 
and his associates in the Panamanian Government, 
and to the people of Panama, I extend my personal 
sympathies as well as the sincere condolences of 
the people of the United States. 

Statement by Secretary Dulles ' 

The people of the United States have learned 
with shock and deep grief of the death of Presi- 
dent Remon, for whom we have held great respect 
and friendship. In their name and my own I send 
sincere condolences to Seiiora de Remon, to Vice 
President Jose Ramon Guizado and his associates 
in the Panamanian Government, and to the people 
of our sister Republic. 

' Bulletin of Oct. 12, 1953, p. 487. 

''Made at New Xork, N. Y., on Jan. 2 (press release S 
dated Jan. 3). 

January 17, 1955 


United States-Israel Friendship in the Free World 

hy Edward B. Lawson 
Ambassador to Israel ' 

It is a privilege and an honor to be invited to 
address you for a few moments tonight. I shall 
address myself to the general subject of "United 
States- Israel Friendship in the Free World." In 
so doing, I shall in no manner seek to introduce or 
discuss matters of an obviously controversial na- 
ture, nor shall I undeilake to in any way olfer 
direct or implied advice or suggestions. There 
are, I assure you, no hidden meanings in my words. 
I shall speak tonight in a spirit of friendliness — 
an approach to my subject one would naturally 
expect from a guest who has been welcomed in 
your country with such warmth and courtesy — 
who has come to your country with gi'eat enthusi- 
asm and hope, who admires so avidly the religious, 
historic, cultural, and broad international back- 
ground of your [jcoples and the great faith, cour- 
age, and drive which has made your country an 
outstanding phenomenon of democracy in modern 

I come to you as a friend. And I accept in the 
sincerest and most genuine spirit the literal inter- 
pretiition of the title under which you are organ- 
ized — the Israel-America Friendship League. 

It will be the ambition of my wife and myself 
to live in harmony and friendship among you. As 
I have indicated, we have met on all sides — within 
the Government and without, among the press 
and among our neighbors, from the tradespeople 
and the man in the street — a welcome the warmth 
of which has never been exceeded in any country 
in which we have served during our 28 years of 
Foreign Service for our Government. This is 
most heartening. We have come to Israel with a 

•.\(l«lrcss mndc bcfori' the Israel-America Frieuilship 
Ix>aK"e at Tel ,\vlv on Dec. 4. 

particular spirit of friendship, with a pronounced 
desire and anticipation of pleasant and interesting 

Therefore, it was most fitting, we thought, that 
our first contact on arrival should be with your 
organization, the Israel-America Friendship 
League. And how impressed we were to find the 
officers and members of your league awaiting us 
in Haifa, whence some had traveled from Tel Aviv 
and Jerusalem in the very early morning hours. 
You did this to give two strangers to your country 
a hearty and warm welcome as they reached the 
shores of Israel. I know of nothing that could 
have pleased us more. I know of nothing which 
will prevent the spirit of friendship which took 
deep root at that moment from growing and 
flourishing during what we trust will be a loni: 
sojourn in your hospitable country. 

It is my fervent wish that, as we become better 
acquainted, as we extend our life among you, you 
and the people of Israel will see fit to give me 
your wholehearted confidence and that I will be 
able to earn a place of trust among you — your 
trust in my good will and in my desire to under- 
stand your problems and aid in their solution. 

And I urge that you continue to extend the hand 
of friendship and your confidence to my Govern- 
ment and to the other nations who signed the 
Tripartite Resolution in 1950. All are fi'iends of 
Israel. All are sincerely desirous of bringinj: 
jieace to your i)art of the world and thus to Israel. 
For without confidence, witliout trust, without the 
conviction that all these nations are honestly and 
sincerely striving to bring a just j^eace to tlie Near 
East, there cannot be the depth of the spirit of 
friendship the world would like to see. I am cer- 
tain that these nations deserve that confidence and 


Department of Sfofe Bulletin 


that friendship. I am likewise confident that 
Israel needs their friendship. 

I should also like to urge that you place similar 
confidence in the efi'orts of the United Nations and 
its Truce Supervision Organization in this area. 
The principles which guide these bodies in their 
eH'orts to achieve just solutions to difficult prob- 
lems are democratic in the finest sense and deserve 
your trust and confidence. 

Friendship Requires Faith 

If I may philosophize briefly : International 
friendship does not necessitate or presume a com- 
plete agreement of opinion among the nations in- 
volved. It does require faith. It does require 
faith that those nations devise no foreign policies 
witli a possible thought of harm or injury to a 
friendly nation. Friendship does not imply ap- 
proval of specific foreign policy so long as 
there is no genuine violation of friendly rela- 
tions. There can be, and naturally there are, 
many honest differences of opinion among friendly 
nations. That is a healthy state of affairs. But 
it is only when the golden strain of friendship 
runs through their relations that there can be the 
necessary understanding, tolerance, moderation of 
thought and action whicli not only permits but 
generates friendship. These in turn produce what 
is probably the outstanding byproduct of interna- 
tional friendship, that is, a willingness and desire 
to enter into discussions and receive and give coun- 
sel. This is the way of mature nations. This is 
the process which in the long run benefits all 

It is well known that my own country, in carry- 
ing out its heavy responsibilities to the world and 
in formulating its vital foreign policies, is con- 
stantly learning and profiting from the broad ex- 
perience and counsel of other countries. Counsel 
is not only accepted, but it is sought after. And 
among our friends we find it. Therefore, we wel- 
come your advice and counsel at all times. 

There are times in everyone's life when he is 
convinced that he faces an experience of special 
significance — an experience which will be richer 
in human relations and impress the mind and heart 
more vividly than most of his experiences of the 
past have done. This is the conviction with which 
I take up my duties here in Israel. 

My reasons for this conviction lie both in the 
past and in the present. It would be difficult in- 

January 17, 7955 

327787—55 3 

deed to come to this land without having a sense 
of history fall upon one almost like a cloak. This 
is particularly true of all of us who revere the 
Bible as a source of spiritual wisdom which has 
influenced the affairs of men beyond measure. 
Here in this land of the Bible the Jewish people 
first realized their greatness as a race, and in all 
the centuries since they have given continuing 
evidence of their greatness. 

You, the Jewish people, have survived enormous 
trials by the exercise of enormous courage and 
by devotion to the noble principles set forth in 
the Bible by your forefathers. All this — the rich- 
ness and drama of your past history — struck me 
forcibly as I stepped ashore a few days ago in 
Haifa and glanced up toward Mount Carmel. I 
recall that there, centuries ago, Elijah had the 
fieiy vision which foretold both the doom and the 
resurrection of Israel. 

Now this realization brought me swiftly into 
the present, and I have been engrossed in the 
present ever since. Every day, with you, I come 
face to face with the problems of Israel's rebirth. 
They are big problems. But I am convinced that 
you have a big people to cope with these prob- 
lems — people big enough in spirit, in energy and 
intelligence and courage, to build Israel into the 
sturdy member of the family of free nations that 
you want her to be. Israel is destined to play an 
important role on the world's stage. It is an im- 
portant partner in the free world of today. And 
in reaching this destiny Israel enjoys the full 
friendship of the United States. 

It is a part of my mission to assure you, not only 
in words but also by whatever deeds may be possi- 
ble, that the Government of the United States 
earnestly desires the continuing development of 
Israel as a free-world partner and that it desires 
to see this development go forward in peace. 

Moreover, the United States Government is 
aware of the fact that, in the liglit of today's 
events, the peace Israel has uppermost in her 
niind— that which she knows she must seek most 
urgently — is peace with the Arab States. This, 
too, the United States earnestly desires and rec- 
ognizes as necessary to the security and freedom 
of the nations of the Middle East. Israel is one 
of these nations. She is not looked upon by the 
United States as an isolated state but as part of 
a community of nations — a nation in which the 
hopes, aspirations, and traditions of the people 
are understood by my own people. 


A few days ago my President in a public address 
in the United States said among otlier things : 

There must be a patient, tireless effort by our Govern- 
ment to establish a just peace among nations. Essential 
to lasting peace Is a genuine desire of the individual citi- 
zens of each nation to understand the traditions and hopes 
and desires of the citizens of all other nations. We in 
America must strive to understiuul the emotions and at- 
titudes, instilled in other peoples from childhood, which 
lie at the heart of vexing internal difficulties. Above nil 
we need the religious quality of compassion — the ability 
to feel the emotions of others as though they were our own. 

But still more is essential to our cause than the capacity 
to understand the motivations which, ingrained in na- 
tions, divided them. We must probe through these to the 
more fundamental urgings, the bonds which make broth- 
ers of all men. 

The desire to be free, the desire to realize one's own ca- 
pacities, the desire for Justice, the respect for reason, will- 
ingness to sacrifice for one's children, love of home and 
love of peace — all these He deep in the heart.s of all peoples. 
It must be so. It is this divinely Inspired faith which 
gives promise to our quest for peace. 

I quote these reniari^s to sliow liow deeply 
President Eisenhower and, I believe, the people 
of the United States feel with regard to the need 
for peace throughout the world. I am convinced 
that this feeling is applicable in particular to 
the problem of peace as we face it here. I quote 
these remarks to give definite fonn to that spirit 
which shall guide my own actions while here in 
your countiT. I am confident that this spirit per- 
vades j'our country as widely as it does my own. 
And I pray tluit before long it will be so manifest 
in other countries, so strong an urge on the part 
of peoples of all countries, that peace will again 
reign and an abiding happiness for those people 
and their children can be built on the strong 
foundations of freedom and peace. 

Peace In Middle East 

Peace in the Middle East is not, as you know, 
to be acquired merely by wishful thinking or even 
by unilateral actions on the part of any single 
country. The burden of insecurity, the yearning 
for peace, and the realization of all that it means 
to Israel are fully imderstood by the American 
Government and by the American people. There 
is no suggestion in the thinking of the United 
States that Israel is not desirous of peaceful con- 
ditions which will permit her to progress further 
as a nation and be relieved of that unbearable bur- 
den of uncertainty. Although this undisputed 

understanding of the basic situation may in itself 
bring no direct or progressive action in the de- 
velopment of a peace, it contributes indirectly to 
a more stable condition, and there is definitely 
some satisfaction and comfort in the knowledge 
that it exists. 

So I say to you, if there is one message that I can 
bring to you tonight which should carrj' some 
measure of reassurance to the people of Israel, it 
is that my Government in formulating its world- 
wide foreign policies is giving serious considera- 
tion and thought to Israel and its important posi- 
tion in this world area. Those precepts of 
character which make for a strong nation, which 
I verj' briefly mentioned as prevailing in Israel, 
are fully recognized as we consider our foreign 
policies and in particular our relations with your 
country. There can be no justification for any 
fears that high-level interest in Washington is 
reserved for other world areas and for other and 
larger countries than Israel. There has been 
clear and unmistakable evidence to the contrary. 

The President of the United States, the Secre- 
tary of State, and the people of the United States 
are keenly and alertly interested in Israel and in 
its future. This interest and friendship is as keen 
today, I believe, as it wixs when your nation was 

I draw from my own personal experiences in 
AVashington only a short time ago to support my 
statements. I need only to recall my experience 
immediately prior to departing for this country 
to obtain emphatic and encouraging evidence of 
the direct and continuing interest in your country 
on the part of the leaders of my Government. As 
I told His Excellency the President of Israel the 
other day when I presented my credentials to him. 
President Eisenhower in his message to me on my 
departure for Israel showed clearly that he recog- 
nized the importance of Israel-United States 
friendship in this free world. And he saw clearly 
the pivotal position that Israel occupies. He is 
fully conscious of the need for peace and tran- 
quillity in this area and is very much interested in 
all policies which may affect Israel and her 

In my final conversations with Secretary' of 
State Dulles, I was frankly amazed at his famil- 
iarity with the many complex details of Israeli 
problems and the very high place of interest whicli 
they held in his overall consideration of world 
problems. He revealed an unusual closeness to 


Department of State Bulletin 

these matters — a closeness and familiarity whicli 
could come only from a lively personal interest 
and attention to them. It is well known that he 
has devoted an impressive part of his heavily 
scheduled time to studies and discussions with 
groups of persons and with our public leaders 
who have fostered Israel's interests devotedly and 
intensely, with your diplomatic representatives, 
with our own Congressmen, and others. His rec- 
ord of interest not only dates back beyond his visit 
to the Middle East something over a year ago 
(which, incidentally, M'as the only instance on 
record of a visit by a United States Secretai"y of 
State to the Near Eastern area and to Israel), but 
it has continued during his very intensive activity 
and heavy duties as long as he has been Secretary 
of Stat«.' 

And I should like to refer to the very high level 
of interest in Israel afi'aii-s displayed by leaders 
in our Congress. This is an important and hope- 
ful sign. And this interest is not merely academic. 
It is a real and active one. You have witnessed 
the arrival in Israel of members of our Congress 
from time to time who have in the past sought 
firsthand information, and you will soon see others 
coming to this countiy to better understand the 
basic influences and the background of the situa- 
tion. This intense interest reveals clearly the im- 
portance they attach to Israel in their thinking 
and their firm determination to apply constructive 
and intelligent thought to all mattere pertaining 
to our relations with your country and with the 
Near East. 

Related to this important congressional interest 
is the fact that our foreign policy is a true bi- 
partisan policy. This brings into play the best 
brains and the best leaders of our Congi-ess on 
matters affecting Israel and our relations with her. 
I believe that with all of their manifest official 
interest there can be no possibility of the problems 
of Israel escaping our policymakers and there can 
be no possibility of Israel being abandoned or for- 
gotten in the consideration of worldwide prob- 
lems. She is, I believe, in the forefront of our 
foreign-policy thinking. 

Now, I have been talking about the considerable 
degree of interest in Israel's welfare which has 
been displayed by the United States Govern- 
ment — by the executive and legislative branches — 
and the inspiring encouragement which I derived 
from that situation. But it occurs to me that no 
one can discuss this subject fully without also dis- 

cussing the attitude of the people who make that 
Government what it is. These are the ordinary 
American citizens who, in these days, have found 
themselves called upon in many ways to be world 

I had a splendid oppoi-tunity to renew acquaint- 
ance with my own countrymen during the several 
months I have just had at home among them. 
And I learned something about what they think 
on a good many issues, both domestic and foreign. 
The extent of their interest in foreign affairs and 
in Israel's position in the Middle East surprises 

You will not find many isolationists among 
Americans today. For one thing, modern methods 
of communication and transport have erased geo- 
graphical isolation. For another, political devel- 
opments within the last 40 years have involved 
Americans actively and personally in world af- 
fairs. The First World War involved our forces 
in Europe, and Americans came to know Europe 
far better. The Second World War took us to 
the Far East as well as to Europe. In the events 
which followed World War II, Americans came to 
know Korea and Indochina not as faraway places 
but as places wherein events had a direct bearing 
on their own lives and security. 

All these developments have convinced the 
American of today that insecurity almost any- 
where in the world can affect his own security. It 
is this realization, plus his deep-rooted humani- 
tarian impulses, which has caused him to turn his 
eyes toward the Near East. And again I say I was 
surprised to discover how much is known about the 
situation which exists here in your part of the 

These plain American citizens see the Near East 
as an area with a rich and ancient culture and vast 
possibilities for economic development. But they 
also see it as disorganized and disunited. The 
American wonders why the sources of friction 
among Middle Eastern nations camiot be elimi- 
nated. He sees this friction as diverting energies 
that are needed for creating strength and a better 
standard of living. He feels his Government 
should do what it can. His Government can and 
will. And this is where I can, I hope, play some 
beneficial part in helping my Government to un- 
derstand and proper!}' evaluate the policies, the 
attitudes, and the events as they occur here — those 
which may delay or may advance peace in tliis 

January 7 7, 1955 


Ours is a heavy responsibility and a complex 
one. It means that to the limit of our ability 
we must help to harmonize tlie conflicting views 
of many free, self-governing nations — without en- 
croaching upon the rights which all people cherish 
and without destroying the strength and inde- 
pendence of any free-world partner. We must trj- 
to help the free nations live together in peace in 
reconciling their differences, but we must not de- 
stroy diversity, for in diversity we recognize one 
of the rights of freedom. Fortunately, we do not 
carry this responsibility alone. For the United 
States is only one of a number of free-world part- 
ners, and each of these partners is responsible to 
the others — and to humanity — for earnestly seek- 
ing and firmly establishing ways to live together 
in peace. 

In the fulfillment of our solemn responsibility 
we have found that, although progress has at 
times been frustratingly slow and discouraging, 
patience and forbearance have finally brought 
peaceful settlement. That gives us hope for the 
future settlement of the long-standing interna- 
tional problems of today — a hope that through 
negotiation conflicts can be resolved in peace. 

Fundamentals of Hope 

Now do not misunderstand me. In making this 
statement I do not presume to pose as an inveterate 
optimist who, in his enthusiasm and hope for the 
best and in his intense wishful thinking, overlooks 
the stern realities of the situation. I would be 
less than realistic and honest to suggest that the 
situation in the Near East at this time is devoid of 
very serious and explosive conditions. !My very 
limited experience of about one month would in 
itself dispel any such misunderstanding. But 
back of every conflict and underneath every dark 
and discouraging problem there always exist cer- 
tain basically sound factors which, when they be- 
come properly operative, can bring encouraging 
results. Even at this stage they can be recog- 
nized as factors upon which our hope can be built. 
Similar situations and similar independence have 
been recognized throughout history. 

As I see these fundamentals of hope, they are 
potential bases of a solution to outstanding prob- 
lems in this part of the world. Their translation 
from potential to operative influences rests within 
the powers of your country, of my country, and of 


the free-world countries. Or perhaps I should 
say the benefits are dependent upon the actions 
of your people, of my people, and the people of the 
free world. "Working together in the all-conquer- 
ing spirit of friendship, all things are possible. 
Even with the greatest stretch of imagination, by 
the greatest perseverance of coimnon reasoning 
and logic, I cannot make myself believe that the 
problems of today as we face them in this area will 
remain insoluble to the kind of people who make 
up your nation and mine. And we have willing 
and enthusiastic coworkers of many nations of the 

Why do I have confidence in the future settle- 
ment of our major outstanding problems despite 
the record of discouragement during the past few 
years ? It is to a considerable extent based on the 
very character of the people of Israel as well as on 
the character of the people of my own country. 
This strong character complex has deep roots. It 
involves the intelligent element of reason as op- 
posed to uncontrolled emotion. It recognizes the 
possibilities of a friendly family of nations. It 
is derived from the functions of the home and the 
family life which has been preserved by our an- 
cestors throughout the years. When I speak of 
the family of nations to which Israel and the 
United States belong, I am forcefully struck with 
the tremendously important part that the family 
unit has played in the life of our countries. This 
leads me to the strong conviction that any nation 
the life of which is built so solidly on the family 
and the home will have the strength of character i 
and leadership to bring its problems to a successful ' 
conclusion in the end. And such nations will 
never fail to occupy leading positions in the great 
world family of nations. It is largely throu^fh 
the family that national character is formed — 
where the virtues of hard work, courage, the love 
of fair play, and belief in human brotherhood are 
taught. These ennobling qualities have been 
passed from generation to generation. 

In closing may I again say that United States- 
Israel friendship plays an important part in the 
free world. Together we can supply the leadership 
required to bring peace so sorely needed in this 
part of the world. Israel is in a forward posi- 
tion in that respect. leadership in all fields of 
human betterment — not only in government but 
also in organization and management, in science, 
the professions, and the arts — is a proven quality 

Department of State Bulletin 

of the Jewish people. Your talent in these mat- 
ters is outstanding. It can be most eiJective. 

Added to this is the unique tradition handed 
down to you from ancient times. The first people 
in history to call for justice in man's dealings with 
Iris fellowmen were the prophets of Israel. Their 
ideas helped lay the foimdations upon which the 
United States grew into a living democracy, for 
these ideas were woven into our Declaration of 
Independence and our Constitution. Thus, you 
and I are bound together in a great venture — a 
great ideal. And we will, I am sure, be joined by 
others. To this venture I look forward with the 
greatest of interest and pleasiu'e. 

And may I ask the liberty of suggesting, as my 
final words, a joint creed — a joint pattern for tliis 
joint venture. I quote from an inscription carved 
in stone on one of our great public buildings in 
Washington. It has always inspired me — it in- 
spires me now : 

Let all the ends thou aim'st at be thy country's, thy 
God's, and thy truth's. Be noble, and that nobleness that 
lies in other men, sleeping, but never dead, will rise in 
majesty to meet thine own. 

U.S. and Canada Meet Informally 
To Discuss Trade Relations 

Joint Communique 

Press release 7 dated January 6 

An informal meeting took place in "Washington 
this afternoon attended by the Rt. Hon. C. D. 
Howe, Minister of Trade and Commerce, the Hon. 
L. B. Pearson, Secretary of State for External 
Affairs, and the Hon. W. E. Harris, Minister of 
Fmance, representing the Canadian Government, 
and by Hon. John Foster Dulles, Secretary of 
State, Hon. George Humphrey, Secretary of the 
Treasury, and the Hon. True D. ilorse, Under 
Secretary of Agriculture, representing the United 
States Government. A number of problems were 
• reviewed which are of current interest in trade 
relations between Canada and the United States. 
Particular attention was devoted to the progress 
being made at the review session of the General 
Agreement on Tariffs and Trade, which is now 
under way in Geneva, Switzerland. Among the 
problems being dealt with at the review session, 
which are of direct concern both to Canada and 
the United States, are the future of tariff conces- 

sions made under the Agreement, agricultural im- 
port restrictions, and the widespread use of import 
restrictions for balance-of-payments reasons. The 
meeting was cordial, and it was possible to have 
a full and frank exchange of views on both sides. 

President Decides Against Further 
Restrictions on Wood Screws 

White House press release dated December 23 

The President on December 23 declined to ac- 
cept the recommendations of three members of the 
U.S. Tariff Conm^iission for an absolute quota on 
imports of wood screws of iron or steel. 

The Tariff Commission's investigation into the 
effect of trade agreement concessions on domestic 
manufacture of wood screws was made pursuant 
to section 7 of the Trade Agreements Extension 
Act. In its report,^ the Commission divided 
equally. On two earlier occasions when domestic 
producers made similar applications, the Tariff 
Commission declined to recommend restrictive 
action against imports. 

In the Commission's report on its latest investi- 
gation, three Commissioners, concluding that wood 
screws are being imported into tliis country in such 
increased quantities as to cause serious injury to 
the domestic industry, recommended an absolute 
aimual quota on imports of 2,800,000 gross. The 
other three Commissioners found no serious injury 
or threat of serious injurj- and therefore recom- 
mended that no action be taken. Under law, split 
decisions in the Commission are forwarded to the 
President for resolution and he is authorized to 
consider the findings of either as the findings of the 

The President, in identical letters to Senator 
Eugene D. Millikin, Chairman of the Senate 
Finance Conunittee, and Eepresentative Daniel A. 
Reed, Chairman of the House Ways and Means 
Committee, stated that a recent decline in the 
domestic production of wood screws has stemmed 
not from imports but mainly from an increased use 
of materials other than wood. The President said 
that since 1951 the ratio of imports to consiunption 
has shown no increase, but rather a slight tendency 
to decrease. 

Januory 17, 1955 

'Copies of the Tariff Commission's report may be 
obtained from the U.S. Tariff Commission, Washington 
25, D. C. 


Text of President's Letter 

Dear Mr. Chairman : The United States Tariff 
Commission on October 28, 195-i submitted to me a 
report of its escape clause investigation on wood 
screws of iron or steel, made pursuant to section 
7 of the Trade Agreements Extension Act. 

The Commission is equally divided as to whether 
the imposition of additional restrictions on im- 
ports of wood screws is warranted. Under the 
law, I am authorized to consider the findings of 
either group as tlie findings of the Commission. 
This is the third investigation on wood screws to be 
completed by the Commission in three years. In 
the two preceding investigations, the Commission 
found no serious injury and recommended no 

The group of Conmiissioners favoring restric- 
tive action believes that the increase in imports of 
wood screws since 1950 is causing serious injury 
and that to remedy the injury an absolute quota 
should be imposed limiting imports to 2,800,000 
gross annually, or roughly half of the recent level. 

The other group of Commissioners finds no seri- 
ous injury or threat of serious injury and therefore 
leconnnends that no action be talien. 

The first significant imports of wood screws into 
the American market after World War II occurred 
late in 1950 when domestic producers were unable 
fully to meet the exceptional demand stimulated 
by the Korean conflict. At that time, imports 
increased from negligible quantities to around 6 
million gross, or about 10 per cent of the 62 million 
gross consumption of that period. After 1951 the 
importation of wood screws continued but it has 
tended irregidarly downward. Imports this year, 
based on totals for the first nine months, appear 
likely to run lower tlian for any year since 1950. 

Meanwhile, domestic production of wood screws, 
though generally higher since World War II than 
in the decade before the war, has also tended down- 
ward recently. But this decline in late years has 
stemmed, not from imports, but mainly from an 
increasing use of materials other than wood. The 
ratio of imports to consumption since 1951 has 
shown no increase but rather a slight tendency to 

Spot reports indicate that such workers as are 
no longer engaged in the manufacture of wood 
screws have generally been employed in other de- 
partments in the same plants or by other plants 
producing similar products in the same general 
labor market area. 


Financial returns of eleven companies making 
about 85 per cent of all domestic shi2:)ments of wood 
screws mdicate that this industry as a whole has 
not suffered serious injury. Earnings have aver- 
aged well above those for all metal fabricating 
companies. Of couree, not all of the finns have 
done equally well. Four located in the Midwest 
and South, accounting for half of the domestic 
output, show better returns than the others. Such 
difficulties as have been encountered by some firms, 
however, cannot clearly be attributed to imports 
since other domestic producers are operating suc- 
cessfully. By the same token, it is at best doubtful 
that an import restriction would materially relieve 
the less successful plants which have for some time 
been losing ground to more effective domestic pro- 
ducers. I do not believe that the escape clause was 
intended to relieve the steady pressure of internal 
competition toward better production methods and 
lower costs. 

The domestic capacity available for the manu- 
facture of wood screws for defense needs in case of 
emergency appears to be entirely adequate. 

For all these reasons I have decided against 
imposing new import uestrictions in this case. 


DwiGHT D. Eisenhower 

Current Legislation on Foreign Policy: 
83d Congress, 1st Session 

Tensions Within tlie Soviet Captive Countries: Albania. 

S. Doc. 70, part 0. July 28, 19.53. 23 pp. 
Tensions Within the Soviet Captive Countries : Hungary. 

S. Doc. 70, part 7, July 2S, 1953. 33 pp. 

83d Congress, 2d Session 

Activities of United States Citizens Employed by the 
United Nations. Hearing before the Subcommittee To 
Investigate the Administration of the Internal Security 
Act and Other Internal Security Laws of the Senate 
Committee on the Judiciary. I'art 6, March 10, 1954. 
as pp. 

Communist Aggression Investigation. Fourth Interim 
Report of Hearings before the House Select Committee 
on Communist Aggression under Authority of H. Ues. 
346 and H. Res. 438. Part 2: Chicago, 111., .May 3-4, 
1954; New York, N. Y., May 7-8, 1954; London. England, 
June 14-10, lO.'M; Mnnlch, Germany, June 23-30, 1954. 
770 pp. 

Amending Section 4.")27, Revised Statutes. Hearing before 
the House Committee on Merchant Marine and Fisher- 
ies on H. It. 3800. June 15. 19,'54. 24 pp. 

The Foreign Operations .Vdministration End-Use Control 
I'rograni. Hearings before a Subcommittee of the 
House Committee on Government Operations. June 17, 
18, and 23, ]9.'i4. 215 pp. 

DeparlmenI of State Bulletin 

Forced Labor in the Soviet Union and its Satellites 

Following are the texts of statements made in 
Committee III (Social, Hmnanitanan, and Cul- 
tural) of the U.N. General Assembly on Decem- 
her 10 and H hy U.S. Representative A. M. Ade 
Johnson and James F. Green, adviser to the U.S. 
delegation. The statements were made during de- 
hate on a draft resolution {U.N. doc. A/C.3/L.- 
JiS6) condemning forced labor and calling for con- 
t tinned effort toward its abolition. 


U.S. delegation press release 2077 dated December 10 

This 20th centuiy in which we are living came 
as an era of great hope for the human race. iSIuch 
that has been beyond our gi'asp for so long in our 
histoiy seenis at last within reach. Many of our 
hopes for this century have been fulfilled or are on 
the way to fulfillment. Technologically we have 
learned a great deal. We have made vast strides 
in medicine, and we are able to prevent, control, 
and cure diseases that once had the power to ravage 
whole cities and even nations. We are able to 
produce ever-greater quantities of food for our ex- 
panding world population. 

In other fields, too, we have seen some dreams 
come true. At the end of the First World War a 
nimiber of new sovereign nations came into being, 
in line with the principle of self-determination of 
peoples. And within the past decade we have 
seen the emergence of still more free nations. 
That the distinguished representatives of the 
Philippines, of India, of Burma, of Pakistan, of 
' Indonesia, and a number of other governments are 
here in this Assembly, playing a vital and essential 
role in our critical deliberations, is clear testimony 
of the changes and progress of our century. 

It is within this setting that we have to consider 
the phenomenon which we call forced labor. And 
withm this setting of progressive enlightenment, 
the thing that we call forced labor looms as a 
dark, ominous, and cruel shadow. It is not the 

January 17, 1955 

first time we have had to take a look at this ques- 
tion. We ai-e already familiar with it. And yet 
each time it arises most of us, I am sure, are over- 
taken by feelings of shock that such a thing exists 
in our centuiy. Old-fashioned slavery was long 
ago repudiated and outlawed by most of the world. 
Where it survives it is only as a remnant of a way 
of life which the civilized world long ago aban- 
doned. But this thing which we call forced labor 
exists on a huge scale. It involves uncounted mil- 
lions of helpless human beings. And it is an in- 
strument of concerted goverimient policy in a 
contiguous region of the world where nearly 1 
billion people live. 

It is certainly one of the paramount obligations 
of our United Nations to seek paths, day in and 
day out, for closer understanding between nations 
and differing political systems. But there are 
aspects of differing political concepts which per- 
mit of no compromise whatsoever. I am deeply 
convinced of the principle that our world cannot 
forever endure "half slave and half free." Either 
this world will continue its progress toward the 
freedom which the 20th centui-y promised, or it 
will succumb to the concept of man as a demeaned, 
inconsequential creature whose destiny is to live, 
work, and die at the bidding of those who wield 
political power. Wliether we speak of these 
things in the United Nations or not, these two con- 
cepts are in real and serious conflict with one an- 
other. We cannot fail to take sober notice of this 

Mr. Chairman, the General Assembly last year 
discussed this question at some length.' This past 
spring the Economic and Social Council examined 
the report of the Ad Hoc Committee on Forced 
Labor.= There is no need, under the circum- 

' For statements made by Mrs. Oswald B. Lord at the 
eighth session, see BtT,i,ETi>- of Dec. 21, 1953, p. 865. 

- U.X. doe. E/2431. For statements made by Preston 
Hotchkis in the Economic anil Social Council, see Bvlle- 
TIN of May 24, 1954, p. 804. 


stances, to recapitulate the familiar facts in regard 
to forced labor within the Soviet Union and its 
satellites. Tliose facts are clear enouj^h for all 
to see and ponder. 

It is also a matter of record that the Soviet 
Union has refused to make any substantive reply 
to communications from the Ad Hoc Committee 
and the Secretary-General concerning forced la- 
bor within the Soviet Union. No matter what 
interpretation the Soviet Union places on its ac- 
tion, I tliink the real significance of the refusal 
is apparent to all. 

Forced Labor in Communist China 

Today I want to turn the spotlight on the man- 
ner in which tlie forced labor system, so ingeni- 
ously developed and refined under Soviet com- 
munism, lias been imposed upon a nation of more 
than GOO million people in Asia. This nation is 
Communist China. Under the current Commu- 
nist regime in Peiping, Communist China has 
fallen victim to the full fury of this legally sanc- 
tioned savagery. The manifold purposes of forced 
labor under the Chinese Communists are — as in 
the Soviet Union — to provide a vast horde of hu- 
man arms, backs, and legs to perform construction 
tasks at an absolute minimum cost; to eliminate 
from the population at large all those who have 
opposed or who might oppose the policies of the 
regime; to hold over the heads of the Chinese 
people, day and niglit, the threat of the direst 
punishment for the sliglitest action or expression 
against tlie government ; and to reconstitute the 
Chinese society into an absolute monolithic state 
in which the individual lives only for tlie jnirpose 
of supjiorting the regime which controls him. 
Forced labor in Ciiina is, in short, an instrument 
for political control, for public terror, and for 
implementation of economic programs. 

It would be hard to know exactly how many 
millions of helpless Chinese of all classes — former 
landowners, former civil sei'vants, former busi- 
nessmen, former soldiers of the National Govern- 
ment, and former farmers — are today in Peipiiig's 
slave labor camps, or how many are serving at 
compulsory labor outside the camps. Wo know 
that the number is large, and much of our infor- 
mation comes directly from spokesmen of China's 
Coninnmist regime. 

Willi a candor born of inexperience, the Chinese 
Communist leaders have spread profusely on the 

record the manner in which they have used the 
forced labor system as a means of fulfilling eco- 
nomic plans. The Peiping People's Daily Jen 
Min Jih Poo, the official organ of the Chinese 
Communist Party, on September 7 of this year, 
revealed that more than 83 percent of the persons 
in confinement throughout the country had been 
assigned to forced labor. The People's Daily 
.specified that these individuals had been put to 
work cutting timber, constructing buildings, re- 
storing and building water conservation installa- 
tions, railways, and highways. 

The economic value of this slave labor force to 
the regime was revealed in the meeting of the 
Government Administration Council on August 
26, 1954, b}' Lo Jui-ching, Peiping's Minister of 
Public Security, who enumerated a few of the 
production totals for the year 1953. He noted that 
slave laborers had produced in 1953 2 billion 
bricks, 770 million tiles, 4,284,000 pairs of socks, 
and 1,700,000 couplers for steam radiators. Lo 
Jui-ching also reported that many new farms had 
been establislied for forced labor, a number with 
more than 10,000 mou (1,666 acres) of land, and 
that considerable numbers of forced labor indus- 
trial units had been established. He reported that 
many so-called engineering corps had been created 
for the repair of conservation works, lumbering, 
railroad building, and the construction of state 

Other reports indicate the vast extent of this 
system. As early as October 24, 1951, Radio 
Chungking announced that more than 19,000 
prisoners in the south Szechuan area had been put 
to compulsory work of various kinds, with another 
7,500 prisoners performing labor for the army. A 
late 1954 report states that a labor reform camp 
near Yingte, Kwangtung, established in 1950, had 
become the second largest such camp in central 
and south China, with approximately 70,000 slave 

In March 1953, forced labor was reported on 
railway construction jobs in Kansu Province in 
northwest China. Another recent report on 
camps in Szechuan includes those at Chungking 
with 11,000 forced laborers and Chengtu with 
10,000. A camp at Kantzu in Sikiang Province 
is reported to have 10,000. Forced labor camps 
have also been reported at Fenghsu near Amoy, 
Chinchiting, IIshan-Tung]iu, Tenglisien, Kasligar, 
and Sulo. Foi-cihI labor camps reported in Ilei- 


Deparfmenf of Sfafe Bullefin 

lungchian include those at Tetu, with over 15,000 
slave laborers, Sunwu with 8,000, and Hsunhochen 
with 4,000. 

Even with the fragmentary information avail- 
able, it is clearly apparent that the slave labor 
system is firmly established on the Chinese main- 
land. And, Mr. Chairman, what we have to deal 
with is not just statistics. These figures I have 
mentioned represent human beings. The figures 
themselves are so overwhelming that by the time 
we come to the end of them it is difficult to re- 
member that we aren't talking about bushels of 
rice, or about rupees, but about men and women, 
young and old. 

Deferred Death Sentences 

You recall, I am sure, that representatives of 
the Labor Party of the United Kingdom visited 
China recently. Those visitors saw some of the 
slave laborers in action. One member of the 
visiting group was Rene MacColl, a correspondent 
of the London Daily Express. Here is his descrip- 
tion of what he saw : 

Here were half-naked men working with a ferocious 
determination and concentration such as I have never 
seen elsewhere. The way in which they went through 
a sort of drill, shuffling and moving to a pattern, was 
first Impressive and then frightening. It was like a 
speeded-up film by some satirical director bent upon 
exposing the soullessness of big business. 

Then came the chief warden's casual revelation : about 
two-thirds of the several thousand men and women in 
the jail were political prisoners ; and many of the political 
prisoners were under sentence of death. 

We began to understand the prisoners' total absorp- 
tion in their tasks. It was explained that the death sen- 
tence was held in abeyance for a 2-year period in order 
to see if the prisoner "truly and sincerely would see the 
error of his ways and genuinely embrace the concepts of 
the People's New China." If he did, the prisoner could 
expect commutation of his sentence to life imprisonment. 

Mr. Chairman, the British correspondent's in- 
formation about deferred death sentences hanging 
like a guillotine over the heads of the helpless 
slave labor prisoners is well substantiated. This 
diabolical device is an integi'al part of the system. 
Let me quote to you what the Peiping People's 
Daily has to say on this subject : 

Deferment of 2 years does not mean immediate re- 
lease after 2 years. Based upon the accomplishment 
during these 2 years, decision will be made as to whether 
the execution of the death sentence will be carried out. 
If it is found that the work they achieved is not satis- 

January 17, 7955 

factory, or that they refuse to reform, they can be ex- 
ecuted at any time. And even if they show wlllingnMs to 
be reformed, their conviction can also be commuted to 
life imprisonment. 

I suggest that in the darker periods of human 
history, when old-fashioned slavery was accept- 
able to some peoples, we had nothing quite 
comparable to this ugly inhumanity. Men and 
women from all walks of life are rounded up be- 
cause they are regarded as enemies or possible 
enemies of the regime in power, because they have 
not learned that in this kind of state there is only 
one view that can be voiced — that of tlie regime 
itself. They are divested of what Peiping calls 
"political rights" — that means, divested of legal 
and humanitarian protections of any kind — and 
assigned to hard labor for life, or for as long as 
the regime wishes, or until the state decides to 
liquidate them altogether. As long as they live 
they are called upon to be "reformed," to have their 
brains washed, to criticize themselves, to make 
confession upon confession, to demean their hu- 
man spirit, and to give every ounce of physical 
energy to the work assigned by the regime in the 
faint hope that the regime will relent. 

Policy Enunciated by Mao Tse-tung 

This thing did not happen by accident. It was 
not something that just occurred. It has nothing 
whatever to do with the basic character of the 
Chinese people, any more than the forced labor 
system in the Soviet Union has to do with the char- 
acter of the Soviet peoples. This nightmarish 
device was planned and replanned. On July 1, 
1949 — even before he achieved absolute power — 
Mao Tse-tung enunciated the basic principle of 
the forced labor institution he intended to impose 
on China. In his essay "On People's Democratic 
Dictatorship" he declared : 

AH the experiences of the Chinese people, accumulated 
in the course of successive decades, tell us to carry out a 
people's democratic dictatorship. This means that the 
reactionaries must be deprived of the right to voice their 
opinions; only the people have that right. Those be- 
longing to reactionary classes or groups would be given 
a chance to reform themselves through labor into new 
persons — but only on condition that they do not rebel, 
sabotage, or create disturbances. 

This policy, Mao explained, could be referred to 
as "benevolent policy" but it would be "compul- 
sorily imposed upon those originally from enemy 
classes. ... If they do not want to work, the 
People's State will force them to do so." 


Mao's basic principle was iiicoiporated :$ months 
later in an ollicial document called the '*C:ommon 
Program" and adopted by the Political Consulta- 
tive Conference on September 2!), 1949. That 
document provided for the suppression of so-called 
counter-revolutionary activities, and it spelled out 
some of the things it had in mind. I quote from 
article 7 : 

Reactionary elenipnt}4, fi'udul landlords, bureaucratic 
capitalists in general must, according to law, also be de- 
prived of their political rights within a necessary period 
after they have been di.sarmed and their special power 
abolished, but they shall at the same time l)e given a 
means of living and compelled to reform themselves 
through labor to become new men. 

"People" and "Non-People" In Communist China 

1 would like to diverge for a moment here to 
take note of the peculiar context in which these 
documents refer to "men" and "people." There 
appear to be two classes of creatures in China 
having the outward characteristics of human be- 
ings. First, there are what Mao Tse-tung calls 
"the people," members and supporters of the Com- 
munist Party and those who make no overt 
resistance to the dictatorship imposed on them. 
Then there are the "non-people"— those who, for 
whatever political or social reason, are regarded 
as undesirable or dangerous to the regime. These 
include all who oppose the regime, or who voice 
opposition sentiment, or who may have been in 
the civil service or army of the National Govern- 
ment, and so on. 

The Chinese Communist press and radio, over a 
long period of time, referred to open anti-Com- 
munists in the country as "wild beasts." It re- 
ported every so often the fact (hat so many thou- 
sand "wild beasts" had been slaughtered by 
Communist forces. ^Vhat we have here, among 
other things, is an ideological rationale for 
slavery and arbitrary mistreatment. Those sen- 
tenced to forced labor are not really people, 
according to the doctrine, and therefore, the 
Communists say, we need have no further con- 
cern for them— unless here and there, perhaps, a 
convict may be able to wash his brain so thor- 
oughly and work so hard that he may condi- 
tionally again be considered a part of the human 
race. It is in this context that Mao's stjitement 
that only the "people" have the right to voice 
their opinions becomes clear. 
The punitive drive against the "non-people" in 


Communist China, those branded as "counter- 
revolutionaries," was further elaborated on Feb- 
ruary 21, 1951, in a law entitled "Regulations of 
the People's Republic of China for the Punishment 
of Counter-Revolutionaries." These regulations 
spelled out in greater detail who were the "people" 
and who were not. They broadened the number 
of punishable offenses to include virtually anyone 
whom the regime might desire to punish. Counter- 
revolutionaries now included not only capitalists, 
landlords, and other so-called "reactionary ele- 
ments," but also those who fabricate and spread 
rumors, instigate resistance to labor service, con- 
duct "counter-revolutionary propaganda and agi- 
tation," alienate and split the solidarity between 
the government and the nationalities, democratic 
classes, parties and groups, and the like. 

Under the principle of retroactivity a man could 
be condemned for an act committed before the law 
itself had been conceived. Thus a person who at 
any time in his life had publicly uttered senti- 
ments contrary to Communist policy in 1951 
would be liable to punisliment. Under the princi- 
ple of analogy, a man could be punished for an 
act not even specified in the regulations but which 
resembled in some way the punishable acts which 
were cited. 

In short, they incorporated into Communist 
China basic elements of the Soviet forced labor 
system — tlie term "counter-revolutionary" as a 
term to embrace all those "class enemies" who dis- 
agree with the detailed plans of the party, the 
retroactive nature of laws, and the extension of 
the laws through analogy. 

"While they thus established a legal basis to 
punish opposition to the policies of the regime 
and to punish the expression of opinions contrary 
to those of the regime, the rulers of Communist 
China did not bother to provide for any legal 
measures establishing forced labor as a punish- 
ment or specifying the conditions under wliich 
persons might be sentenced to forced labor camps. 
The regulations of 1951 were silent on this point, 
although they have in fact served as the basis for 
the extensive system of forced labor Communist 
China has carried on since 1949y 

Slave Labor System Legalized 

Finally, on the basis of all of this experience, 
the Peiping regime got around to "legalizing" its 
slave labor system. On August 26 of this year. 

Department of Sfafe Bulletin 

Chinese Communist leaders completed the drafting 
of a law intended to make slave labor a legal and 
permanent institution. This law, passed by the 
222d Meeting of the Goverimient Administration 
Council, is called "Regulations Governing Labor 
Service for Eeform of the People's Republic of 

Translations of the text of this law, and of sup- 
plementary regulations for dealing with the re- 
lease of forced laborers at the termination of their 
sentences, have been submitted to the Secretary- 
General by the International Confederation of 
Free Trade Unions and circulated directly by that 
Organization to delegations. The Icftu has also 
submitted to the Secretary-General, and circu- 
lated to delegations, the speech of Minister Lo 
Jui-ching in which he presented the law to the 
Council, as well as an editorial from the Peiping 
PeopWs Daily urging its rapid implementation. 

Because these documents are already available, 
I will limit my remarks to some of the most im- 
portant aspects of the new law. 

In its own language, the purpose of the forced 
• labor regulations is to punish all "comiter-revo- 
lutionary criminals and other criminals through 
labor service to become new people." 

The law carefully states what was already the 
practice under the Common Program — that is, the 
intention of the regime to compel the prisoners 
to change their political opinions. This political 
character is openly ascribed to the punishment, 
both in the regulations and in the commentaries 
made on them. Article 25 makes it most explicit, 
calling for the coordination of forced labor with 
political and ideological education so the crimi- 
nals may be '"reformed into new men." The "re- 
form" is to be carried out through collective study 
classes, individual interviews, study of assigned 
documents, and organized discussions (article 
26) for at least 1 hour a day, 28 days a month 
(article 52) . 

The comments of the PeopWs Daily with respect 
to this policy were that the Communist Party 
must carry out "various effective measures to trans- 
form the various evil ideological conceptions in the 
minds of the people, so that they may be educated 
and reformed into new people. The enforcement 
of compulsory labor service for reform among the 
criminals during the period of their confinement 
is one of the most effective means to achieve such 
an end." 

The intention to employ forced labor in ac- 

cordance with the economic plans of the state is 
equally well stated. As in the U.S.S.R., the rulei-s 
of Communist China are assuring themselves of a 
vast pool of cheap labor upon which they can 
plan when constructing their economic programs. 
That such utilization of forced laborers will not 
be forgotten is assured by article 30 of the regu- 
lations, which specifies: "Production in labor serv- 
ice for reform shall serve the interests of national 
economic construction and be included in the 
state's general production and construction plans." 
The plans for using forced laborers are to be drawn 
up in accordance with guidance from the various 
departments of the government (article 31 ) . Spe- 
cific priority is given to agricultural production; 
industrial, mining, and porcelain production 
enterprises; and water conservancy, road build- 
ing, and other construction projects (article 33). 
Forced laborers may be transferred from one area 
and one type of employment to another (article 

Juveniles from the ages of 13 to 18 are also to 
perform "light labor ser\ace" while being given 
an "education in politics, in the new moral code, 
and in basic cultural subjects and production tech- 
niques" (article 22). 

Types of Forced Labor Institutions 

Aside from special institutions for juveniles, 
there are three major types of forced labor insti- 
tutions corresponding generall}- to the places of 
ordinary imprisonment, forced labor camps, and 
forced labor colonies of the U.S.S.R. The insti- 
tution for the relatively minor crimes, calling for 
sentences of 2 years or less, is the "detention liouse'" 
(article 8) . Apparently there was some objection 
to the utilization of these jails, for Minister Lo 
Jui-ching found it necessary in his statement be- 
fore the Government Administration Council to 
defend them on the basis that they were also in- 
cluded in the forced labor legislation of the Soviet 

The most serious offenders — tliose having been 
sentenced to death or lengthy terms — are to be 
placed in prisons, made to do compulsory labor 
service and to receive education under the prin- 
ciple of rigid control (articles 13-14). 

The third institution, most comparable to the 
vast slave labor camps of the U.S.S.R., is known 
as the "labor service for reform corps." The mass 
of "counter-revolutionaries and other criminals 
suited for labor service in the open" — including, 

January 17, J 955 


apparently, many with sentences only up to 2 
years — are to be put into the camps and colonies 
of the reform corps (article 17). It is tlirough 
this institution — and under its own Mxtj — that 
Communist China is undoubtedly building in its 
nortluvest provinces tlie Communist Chinese coun- 
terpart of the great Siberian slave labor empire 
of the Soviet secret police. 

How large such an empire may be is also re- 
flected in the regulations, article 20 of which spe- 
cifies that, on the basis of the number of criminals 
and the needs of production, forced labor corps 
may be organized into small companies, medium 
companies, large companies, branch companies, 
and general corps. Forced labor corps of 3,000 or 
more prisoners in isolated areas are envisaged in 
such numbers that it was found necessary to in- 
clude four articles on them (articles 63-66). 

Forced laborers are to work from 9-10 hours 
daily, or as much as 12 hours daily in seasonal pro- 
duction activities; they are to get only 1 day of 
rest every 2 weeks (article 52). This means a 
work w-eek of a minimum of 58i/^ hours. Add the 
minimum of 6^4 hours political education per 
week, and the total work week comes to a minimum 
of 65 hours. A speed-up system is introduced 
under the guise of "production competitions" 
(article 28). The Chinese slave laborers receive 
no pay. This is not made clear in the regulations 
but was pointedly stated in the accompanying 
editorial in the following words: "Such labor is 
forced, and without compensation, and carried out 
under strict control." As in the U.S.S.R., forced 
laborers will be assigned work norms (article 68). 
^Vhether food rations will be tied to these norms is 
not specified. 

Other built-in compulsions for rigorous appli- 
cation to assigned work and rapid reform of 
thinking almost make the crude pressure of work 
norms unnecessary in any case. The deferment of 
the execution of death penalties for 2 yeai-s, during 
which the prisoner is called upon to prove his re- 
generation througii hard work and reform of his 
thoughts, is retained (article 13). An elaborate 
system of reporting on the maintenance of disci- 
pline, and attitudes toward labor and study is 
specified (article 29). Forced laborers are en- 
couraged to report on each other to prison author- 
ities in hope of being extolled, given material re- 
wards, credited with a note of merit, having sen- 
tences reduced, or being paroled (article 68). 

Arbitrary Retention After End of Sentence 

On the other hand, a forced laborer must have 
done more than simply serve his sentence as speci- 
fied bj' law in order to be released. As a matter 
of fact, almost no one who is sentenced to forced 
labor may assume that he will be allowed to return 
to his home as a free man on the completion of his 
sentence, no matter how "actively" he engaged in 
forced labor or how studious he was in correcting 
his thoughts. 

To begin with : If he has been sent to a forced 
labor camp in a "large and sparseW populated 
district," he can be held there arbitrarily, regard- 
less of how he has served his sentence (article 2 
of the Provisional Measures for Dealing with Re- 
lease of Criminals) and even if he has a family to 
return to elsewhere (article 7, same). Even if he 
is not in a camp in a "large and sparsely populated 
district," and even if he has served his sentence 
satisfactorily, he may still be held arbitrarily un- 
less he has a definite home or vocation to return 
to (article 62). One of the more cynical reasons 
for these provisions, which make it possible to re- 
tain the great bulk of prisoners indefinitel}', was 
revealed by Minister Lo Jui-ching when he said: 
"Not only will certain criminals be relieved of 
anxiety for employment on the expir}^ of their sen- 
tence, but the state will also have its difficulties re- 
duced in dealing with the unemployment prob- 

Besides these general authorizations for the ar- 
bitrary^ retention of forced laborers, other provi- 
sions are set forth to extend sentences of those who 
have not satisfied the regime during their impris- 
onment. Anj' important "counter-revolutionary" 
criminal, habitual robber, or thief who fails to 
engage "actively" in forccil labor, frequently vio- 
lates prison regulations, or fails to reform can have 
his sentence extended by local courts (article 72). 
Open resistance to forced labor without repenting 
after "repeated education" requires reporting to 
local people's courts for "attention according to 
law" (article 71), and any new evidence discov- 
ered during his internment apparently can result 
in a lengthening of his sentence (article 43). ' *" 

In summary, a forced laborer can only be assured 
of release at the end of his sentence if he is not in 
a camp in a sparsely settled area, has a home or 
job to return to, has worked "actively" at forced 
labor, has had his opinions corrected, and has been 
a model prisoner. Otherwise, he can be held in- 


Department of State Bulletin 

Mr. Chairman, this institution of forced labor 
which has been imposed on the Chinese people 
bears marked similarities to the forced labor in- 
stitution in the Soviet Union. We may take note 
of the fact that the phrase "counter-revolutionary 
criminals" embraces all persons who do not agree 
with the regime or whose social origins are not 
accei^table. It corresponds closely to what the 
Russians call "class enemies" in article 1 of the 
Soviet Corrective Labor Code. We have noted 
that the various types of forced labor confinement 
places in China have already been institutionalized 
in the Soviet Union. There are innumerable 
other similarities throughout. This is no accident. 
Soviet practices in regard to forced labor have 
been used as a model and a tested precedent. Nor 
did it end there. I want to quote to you from the 
statement made by Lo Jui-ching, the Peiping Min- 
ister of Public Security, when he submitted his 
report on the new draft law to the Government 
Administration Council. Mr. Lo said — and I am 
now quoting exactly : 

During tie process of preparation, assistance was re- 
ceived from Soviet legal experts, and many discussions 
were held and revisions made. 

That is a short sentence, easily overlooked in the 
long texts which have been distributed. But I 
call your special attention to it. It is something to 
think about. "Wliile Soviet representatives in the 
United Nations were denying the existence of 
forced labor in the U.S.S.R., Soviet representa- 
tives in Communist China were extending a per- 
verted "technical assistance" to extend the Soviet 
system of forced labor to that country. 

I believe this reveals, more clearly than any- 
thing I could say, the reality that the world can- 
not remain forever in balance part slave and part 
free. AVliat we are looking at here is an ab- 
horrent system of slave labor spreading from the 
place of its origin to another continent. It now 
blankets all of mainland China, with a population 
of more than 600 million people. 

Albanian Forced Labor 

We have already seen how the slave labor doc- 
trine was exported from the Soviet Union into 
its satellite states in Eastern Europe. We have 
had reports on all of these states except one, Al- 
bania. Poland, Czechoslovakia, Hungary, Bul- 
garia, Rumania — all have been infected with this 
cruel disease. One might have thought that the 

January 17, 1955 

tiny country of Albania, with a population of 
1,300,000, would escape the plague. It was not 
so. No area under Soviet control or operatmg 
under Soviet doctrine has escaped, neither the 
great population of China nor the small popula- 
tion of Albania. 

Ever since the end of World War II, forced 
labor has been carried out in Albania under a 
variety of laws for both political and economic 
purposes. The Albanian penal code adopted by 
the People's Assembly on May 2;?, 1952, provided 
a stable and systematized basis for slave labor. 
Here again the hand of the teacher and master is 
seen. The xVlbanian Minister of Justice, Bilbil 
Klosi, declared when this law was submitted for 
approval that it embodied the familiar Soviet 
principles of class warfare and revolutionary 

The Albanian penal code frankly states its pur- 
pose as that of preserving the "dictatorship of the 
proletariat." Major penalties imder the code are 
death, imprisonment, and internment at "correc- 
tive labor" camps. All of the familiar character- 
istics of Soviet slave labor practices arc present. 
There are some 40 political prisons and concen- 
tration camps which have been in operation since 
the end of the war. Over 80,000 men, women, 
and children have gone into these camps. It is 
estimated that 16,000 people in the camps have 
perished. At present, around 10,000 persons are 
probably serving in political prisons, and another 
10,000 to 15,000 in concentration camps. 

Mr. Chairman, I do not have the time to go 
into any great detail here on the subject of forced 
labor in Albania. But we do have a great deal of 
information on this subject. My Government in- 
tends to submit evidence in writing to the Secre- 
tary-General, in the near future, on the purposes, 
extent, and operation of forced labor in Albania 
as well as in Communist China. 

Much of what I have had to say today may seem 
unreal as we sit here in this comfortable room. 
It is truly fantastic in this enlightened 20th cen- 
tury, but it is real. 

Some may ask tliemselves, ""\Miat does it profit 
us to raise this specter in the United Nations?" 
My answer is that we do not raise it, it has raised 
itself. There is no way of pretending that slave 
labor does not exist. It exists, as many millions 
of unfortunate, helpless people in Europe and 
Asia know too well. We may not escape facing it. 


Certainly this committee, which is concerned with 
human j)robIenis — with basic rights, with funda- 
mental freedoms, with slavery, self-determination, 
refugees, and freedom of infomiation — cannot 
close its eyes to such a primordial violation of the 
human spirit. Kemote as slave labor muj' seem 
to some of us who have been born and have always 
lived in an atmosphere of liberty, we cannot be 
unconcerned with it, any more than we can be un- 
concerned with cholera, leprosy, and yellow fever. 
We may take note that, while there has been no 
change in the system, there appears to have been 
some amelioration in the treatment of forced 
laborei-s in the Soviet Union. Perhaps our discus- 
sions here in the United Nations have had .some- 
tliing to do with it. It is hard to know. But we 
must continue our efforts in behalf of the little 
people of this world in whose interest, in the last 
analysis, the United Nations was founded. 


Mr. Chairman, I regret very much that the rep- 
resentative of the United States, Mr. Johnson, who 
spoke early in the general debate, could not be 
present this morning to make the very brief reply 
which he had intended to do. Mr. Johnson has 
had to return to his regular duties as Commis- 
sioner of Labor in the State of Washington. 

Mr. Chairman, I listened very carefully and 
very courteously to everything which the distin- 
guished representative of the Soviet Union said 
in his reply this morning, and I am sure he will 
listen to me in the same spirit. 

I listened particularly attentively to hear any 
new facts or new material which would illuminate 
our debate on this very important subject. I re- 
gret to say that I listened in vain. The only new 
material, of which I was conscious at least, were 
the quotations by Mr. William Green and Con- 
gressman Byrd ^ which the representative of the 
Soviet Union included in his long speech last year 
on this subject but which he liad not used until the 
reply this morning. 

Mr. Chairman, the representatives of the Soviet 
Union, the Ukraine, Byelorussia, Czechoslovakia, 

"The Soviet ropresentatlvo. (}. F. Saksin, had qiioted 
8tal(>mpnt.H hy thi- hitc wmiiira (irpi-ii. I'rpsident of the 
Aniprlcnn FecJeratlon of Labor, mid Ucpresentative Kobert 
C. Byrd of West Virginia. 


and Poland have had three principal things to say 
about my country's comments on forced labor and 
about the work of the Ad Hoc Committee on 
Forced Labor. The representative of the Soviet 
Union repeated those three principal points this 

First, the representatives of these delegations 
have claimed this year, as they did last year, that 
the LTnited States is the real source of forced labor, 
the real example of the existence of systems of 
forced labor in the modern world. 

Now, perhaps, through tlieir Marxian eyes they 
really believe this. But I can only say that I wish 
they would look about them a little more closely 
and a little more carefully. 

The United States Government and its delega- 
tions here and elsewhere have no fear of any facts 
which the representative of the Soviet Union and 
others may wish to present. Our delegations and 
our Government have answered all of these allega- 
tions before the Ad Hoc Committee on Forced 
Labor and we have answered these allegations here 
and in other bodies of the United Nations. 

Our country, Mr. Chairman, has never claimed 
to be perfect. There is, of course, unemployment 
in this country. There is, of course, some discrim- 
ination in this country. There is some poverty. 
There are miscarriages of justice. There are other 
abuses. But we do not, Mr. Chairman, have sys- 
tems of forced labor, and the Ad Hoc Committee 
on Forced Labor so found. 

Our political traditions, our religious ideologies 
are all in opposition to any such systems, to any 
such abuses of human freedom. And where indi- 
vidual miscarriages of justice or individual viola- 
tions of our laws occur, we are continuing to make 
progress in redressing such cases. 

Once or twice a year we read in the newspapers 
of an individual case of peonage or of servitude 
somewhere in the country. And immediatelj' the 
person responsible for that crime is brought into 
court and tried, and, if fomid guilty, is convicted. 

The Governments of the Soviet Union, of 
Czechoslovakia, Poland, and Communist China 
and other countries, on the other hand, have made, 
as the Ad Hoc Committee found, forced labor a 
part of their laws, a part of their political system 
and a part of their national economy. 

Several members, several representatives of 
these states have commented at length on the 
status of the Negro in the T"^nited States, although 

Deparfment of State Bulletin 

they did not make exactly clear just what this sub- 
ject has to do with the subject of forced labor 
which is on our agenda. 
May I reply very briefly on this subject. 

Status of American Negro 

It is quite true that our Negro citizens have not 
yet achieved full equality in every field of activity 
in this country. It is also quite true that our Ne- 
gro citizens are moving steadily ahead, year by 
year, under our democratic traditions and proc- 
esses. I am proud as an American to see Ralph 
Bunche receive a Nobel prize for his services to 
the United Nations. I am proud to read that Mar- 
ian Andei-son is to sing this winter at the Metro- 
politan Opera. Other Negroes in our country are 
rising each year, more numbers each year, to posi- 
tions in our Government, in our States, in our dele- 
gations to international conferences, in our legis- 
latures, in our colleges, and elsewhere. But I am 
even prouder as an American when I read that the 
Supreme Court has knocked down the last barriers 
to Negroes in American schools. And I am 
prouder when I see the general progress forward, 
the steady progress forward of our Negro citizens. 
Mr. Chairman, slavery was ended in the United 
States some 90 years ago. In fact, the traditional 
forms of slavery have long since disappeared in 
most regions of the world, although, as several 
speakers pointed out in our debate some weeks 
ago on the report of the Economic and Social 
Council, vestiges of slavery still remain in some 

The tragedy, Mr. Chairman, is that a new form 
of slavery has been developed and has been per- 
fected in the Soviet Union, in the states of Eastern 
Europe, and in Communist China today in the 
middle of the 20th centui-y. There is no doubt 
whatever in my mind that the lot of the Negro in 
this country today is far better than the lot of a 
slave in a forced labor camp in the Soviet Union 
or in Communist China or elsewhere. As a matter 
,of fact, I understand that statistics show that the 
average Negro in this country earns about three 
times the amount that the average Soviet citizen 
sarns even outside a forced labor camp. 
[ Now, Mr. Chairman, the representative of the 
i Soviet Union and the speakers in the general de- 
bate have had a good deal to say about the Taft- 
Hartley Act. I would like to point out two or 
hree things about the Taft-Hartley Act. 

lanuary 17, J 955 

In the first place, it is not a dictate handed 
down by someone sitting in the Wliite House. It 
is an Act of Congress adopted by the two liouses 
of the Congress, by Senators who are elected every 
6 yeai-s, and by Representatives wlio are elected 
every 2 years. Those Senators and those Con- 
gressmen try to reflect the will of the American 
people. They are quite free at any time to change 
their minds, to revise the Taft-Hartley Act, or to 
reject it entirely. That law, like a great many 
other laws in our country, is a matter of great po- 
litical controversy, especially during our elections 
every 2 years. It is criticized by many persons, 
and it is praised by many persons, both inside the 
Congress and outside. 

Perhaps I might repeat or paraphrase the re- 
mark which Mrs. Lord made in our debate last 
year, in referring to the 1952 election, when the 
representative of the Soviet Union included many 
of the quotations made against the Taft-Hartley 
Act. Mi's. Lord pointed out that, while some of 
the persons criticizing and condemning the Taft- 
Hartley Act were thrown out of ollice in 1952, 
none of them M^as thrown into jail ! 

Study of Charges Against U.S. 

Now, Mr. Chairman, the Soviet representative 
asked why the Ad Hoc Committee on Forced 
Labor, if it were really interested in the problem, 
did not investigate and study conditions in the 
United States. The answer is that it did so. The 
Ad Hoc Committee on Forced I^bor took up each 
of the charges which had been made against the 
United States, studied them, and csime to con- 
clusions just as it did in connection with other 
charges made against other countries. And the 
Ad Hoc Committee found that forced labor did 
not exist in this country. 

Mr. Chairman, the representative of the Soviet 
Union had some comments this morning about 
the problem of thought control, which had been 
mentioned only in passing, as I recall, in Mr. 
Johnson's statement I think that the only ex- 
ample of thought control that you can really find 
in this country is provisions in our laws against 
the advocacy of violent overthrow of the govern- 
ment — and I believe in some circumstances a per- 
son can do even that. 

We have laws of libel, we have laws against 
obscene publications and the rest, but thought 
control as used in Mr. Johnson's speech certainly 


does not exist in tiiis country. In fact, the verj- 
speeches and the ven- editorials whicli the repre- 
sentative of the Soviet Union quoted in attacks on 
the Taft-Hartley Act and on the McCarran Act 
by American citizens are an example of the absence 
of thoupht control and the presence of freedom of 
expression in this country. 

Secondly, ,Mr. Chairman, the representatives of 
the Soviet Union and the other delegations have 
abused the personal integrity of the members of 
the Ad Hoc Committee on Forced Labor. They 
have maligned the integrity of distinguished citi- 
zens of India, Peru, and Norway. The Chairman 
of the Ad Hoc Committee, Sir Ramaswami Muda- 
lier, is the best known of the three members to 
those of us who have served in the United Nations 
because he has been an outstanding figure in the 
economic and social work of the United Nations; 
and he is personally known to many of us in this 
room for his intelligence and integrity. 

The representatives who have cast aspersions on 
the three distinguished members of the Ad Hoc 
Committee have not, however, challenged the facts 
on the basis of whicli those three members made 
their conclusions. The Ad Hoc Committee cited 
those facts accurately, and they have not yet been 
repudiated by any of the representatives who 
have spoken. 

"Slanderous" Remarks 

Third, Mr. Chairman, the representatives who 
have spoken in the general debate and the repre- 
sentative of the Sovnet Union who has made his 
recent reply have claimed that the remarks of Mr. 
Johnson on behalf of the United States delegation 
were "slanderous." representatives have 
tried to take all the meaning out of some of the 
words familiar to us in this committee, words like 
"freedom," "rights," "democracy" and "people." 
Now they are trying to take all the meaning out of 
the word "slanderous." 

Almost everything which our representative, 
Mr. .Iohn.son, had said last Saturday was taken 
directly, often in verbatim quotations, from the 
official Chinese Communist and the oflicial Al- 
banian Communist sources. In fact, I think it 
was the representative of Iraq yesterday who said 
he had some regret that Mr. Johnson's speech was 
so well documented that it was difficult to see any 
way to avoid the statement of facts which that 
speech contained. 

If these facts then are slanderous, the com- 
plaints should not be addressed to the United 
States delegation ; they should be addressed to the 
Chinese Communists and the Albanian Commu- 
nists themselves. 

Mr. Chairman, the representative of the Soviet 
Union, if I understood him correctly, made a for- 
mal request that certain articles from the con- 
stitution of Communist China be circulated to this 
committee as a document — the articles which he 
had quoted in his speech. Our delegation would 
have no objection to that procedure provided that 
the quotations are either annexed to the Soviet 
representative's speech, if that is to be circulated 
as a document — and I would hope it might be — 
or if it is distributed as a document submitted by 
the delegation of the Soviet Union. It would be 
quite improper, I should think, for the Secretariat 
itself to circulate a document of this kind under its 
own name. But our delegation would certainly 
welcome these quotations, which we would be glad 
to look at carefully, if they were either attached 
to Mr. Saksin's speech as the speech of the Soviet 
representative or circulated as a Soviet document. 

Now, Mr. Chairman, I would hope that if this 
can be done — and I hope that it will be done — that 
members of the committee will compare the pro- 
visions of the constitution with the quotations and 
facts stated in Mr. Johnson's speech. 

One or two other comments, Mr. Chairman, and 
I shall conclude. 

The representatives who have spoken have care- 
fully avoided making anj' direct comments on 
forced labor in their territories, even of forced 
labor as the subject of our agenda. 

The representative of Byelorussia admitted, 1 
believe, the existence of corrective labor codes ii 
the Soviet Union. I would appreciate, and 1 
should think other representatives here would ap- 
preciate, hearing what the prisoners in the forcec 
labor camps and colonies or those exiled undei 
these codes are doing if they are not performing 
forced labor. 

I should like to hear, and I should imagine othei 
representatives would like to hear, the explana 
tions of the meanings of these penal codes and tht 
corrective labor codes — if I am quoting the titl 
correctly in English — of Poland and Czechoslo 
vakia if these codes are not regarded by those rep 
resentAtives as forced labor laws. 

I should also like to know the official explanatioi 


Department of State Bulletli 

of the Chinese Communist "Regulations Concern- 
ing Labor Service for Reform," if these are not 
regulations concerning forced labor. 

ilr. Chairman, the representative of the 
Ukraine told us that there was complete freedom 
to express political views in the Soviet Union, and 
the representative of the Soviet Union a few mo- 
ments ago repeated this statement and added some 
very interesting facts about this freedom to ex- 
press political views. If these statements are cor- 
rect, all of us in this room would certainly rejoice. 

But I should like to ask whether a political party 
in the Soviet Union or a political candidate could 
campaign on a non-Communist ticket and run a 
non-Communist candidate against Mr. Malenkov 
for the premiei-ship. I should like to ask whether 
any party or individual in the Soviet Union could 
undertake a political campaign advocating the 
return of capitalism. 

I note linally that the representative of the 
Ukraine has confirmed that persons arrested in the 
Soviet Union are made to do. if I understood the 
interpretation, labor service for the state. 

The Byelorussian delegate referred to "mythical 
millions" of forced laborers, perhaps in sarcasm. 
If there is no extensive forced labor in the Soviet 
Union, its representatives could clarify that fact 
by telling us exactly how many persons there are 
in their corrective labor camps, in these labor 
colonies, and in exile. If there are no more per- 
sons in such camps and colonies and in exile as 
one might ordinarily expect to be in the jails or 
prisons of any democratic state, then the burden 
of the case would fall of its own weight and we 
would not have to deal with this item on our 

Finally, Mr. Chairman, one of the representa- 
ives yesterday, if I understood him correctly, men- 
ioned the articles by a correspondent of the Xew 
i'ork Times who had recently made a trip to Si- 
5eria and had reported that he saw no forced labor 
here. I was interested, and indeed astonished, at 
hat statement if I understood it correctly, because 
'he only articles which have appeared in the Xew 
lork Times within the last 6 months to my knowl- 
dge have been the articles by !Mr. Harrison Salis- 
mry, who returned from the Soviet Union as the 
"i'mes correspondent there. 

Mr. Salisbury, as those of you who read the ar- 
icles in late September will recall, had two or 
hree articles dealing with forced labor in the So- 
iet Union. One of them bears the remarkable 

title— remarkable in view of the statement which 
we heard yesterday— as follows: '-Russia Re- 
viewed : The Prison Camps of Siberia."' and the 

Text of Resolution on Forced Labor* 

ir.X. doc. A/Resolution/287 

The General Asseinblij, 

Having noted Economic and Social Council reso- 
lution 524 (XVII) of 27 AprU 1954 concerning the 
report of the Ad Hoc Committee on Forced Labour, 

1. Endorses the condemnation by the Economic 
and Social Council of the existence of systems of 
forced labour which are employed as a means of 
political coercion or punishment for holding or ex- 
pressing political views, and which are on such a 
scale as to constitute an important element in the 
economy of a given country ; 

2. Requests the Economic and Social Council and 
the International' Labour Organisation to continue 
their eflforts towards the abolition of such systems 
of forced labour ; 

3. Supports the Council's appeal to all Govern- 
ments to re-examine their laws and administrative 
practices in the light of present conditions and the 
increasing desire of the peoples of the world to re- 
affirm faith in fundamental human rights and in 
the dignity and worth of the human person : 

4. Egresses its satisfaction with the action taken 
by the Economic and Social Council In requesting 
the Secretary-General and the Director-General of 
the International Labour Office to prepare a further 
report on this subject for consideration by the Coun- 
cil at its nineteenth session, setting out : 

(a) Whatever replies are received from Govern- 
ments in pursuance of General Assembly resotation 
740 (VIII) of 7 December 1953: 

(b) Any new information on systems of forced 
labour which might be submitted by Member States, 
specialized agencies and non-governmental organiza- 
tions in consultative status, together with any com- 
ments submitted by the Governments concerned. 

* Sponsored by Australia, Brazil, Canada, Costa 
Rica, Cuba, Xorway, Peru, Philippines, Turkey, 
United Kingdom, and the United States ; adopted by 
Committee III on Dec. 14 by a vote of 31-5 ( Soviet 
bloc)-12 and by the plenary on Dec. 17 by a vote 
of 41-5-10. 

sub-heading is : "Grim M, V. I). Slave-Ljtbor Em- 
pire Covers Major Part of Soviet Union."' 

Either I misunderstood the remark about a re- 
turning correspondent of the New York Times or 
the representative who spoke yesterday and I have 
been reading different editions of that newspaper! 

onoory 7 7, J 955 


In conclusion, Mr. Chainnan, may I state again, 
as Mr. Johnson did, that this is not a debate for 
political polemics. It is a debate on human rights. 
It is a debate just as much on human rights as our 
debates on tlie draft covenants, freedom of infor- 
mation, and otlier subjects liave been. It is a 
debate on the social welfare of men, women and 
children. Our conunittee is a social, humani- 
tarian, and cultural committee; and this debate of 
forced labor is just as much a proper part of our 
agenda, a proper subject of human rights, as any 
other subject we have discussed here. And it 
should be discussed not as political polemics but 
iis a matter of social and humanitarian concern. 

Discussion of Israeli Complaint 
on Restrictions in Suez Canal 

Statement by HenTy Cabot Lodge, Jr., 
U.iS. Representative to the United Natiom ' 

The case of the SS. Bat Galim is one of a long 
series of cases considered by this Council in the 
Palestine question. It must be looked at in the 
perspective of the liostilities between Israel and 
the Arab States that were at their height less than 
7 years ago, of the efforts of this Council to bring 
about a cessation of those hostilities, and the 
eventual establishment of armistice agi-eements 
between Israel and her neighbors as a result of 
United Nations mediation. It must also be looked 
at in the perspective of the inevitable dislocations 
and equally inevitable adjustments that always 
follow armed conflict between states. 

One had a right to expect, however, in the United 
Nations that these years would have shown greater 
progress toward the establishment of that gen- 
eral peace endorsed by the Governments of Egypt 
and Israel in signing the General Armistice Agree- 
ment between them. The progress that should 
have occurred has been arrested by ill-considered 
actions on the side of one or the other of the par- 
ties to the various armistice agreements between 
Israel and tlie Arab States. There have been times 
duririg this period when such actions have threat- 
ened to reopen hostilities. These incidents have 
caused the United Nations great concern. 

Confronted with the danger of new hostilities, 
a series of resolutions has been adopted which has 
come to make up United Nations jurisprudence on 
the Palestine question. Each of these resolutions, 
together with the General Armistice Agreement, 
has become an essential link in the slow process of 
building enduring peaceful relations between the 
countries of the Near East. None of them can be 
disregarded without imperiling the validity and 
the enforcement of the others. Respect for each 
of them is essential if the tensions that continue 
to divide peoples of the area are finally to be re- 
moved and the substantial benefits which each of 
the peoples concerned would obtain from a peace 
settlement are to be enjoyed. The United States' 
sole desire is to see a just and equitable settlement 
of the outstanding problems between Israel and 
her neighbors which will in fact benefit all, but we 
do not believe that this can be accomplished with- 
out strict adherence by both sides to the decisions 
of the Security Council, taken in accordance with 
its responsibilities for the maintenance of peace 
and security, and strict adherence to the provisions 
of the armistice agreements. 

Thus we cannot fail to state our view tliat 
Egyptian restrictions on ships passing through 
the Suez Canal, whether bound to or from Israel 
or whether flying the Israeli or some other Hag, 
are inconsistent with the spirit and intent of the 
Egyptian-Israeli General Armistice Agreement, 
contrary to the Security Council resolution of 
September 1, 1951, and a retrogression from the 
stated objectives both sides committed themselves 
to in signing the armistice agreement.^ We can- 
not fail to state, therefore, that we look to Egypt 
to give effect to these decisions and agreements. 
This being said, we must also take account of the 
fact that Egypt has responded in recent months 
to such expressions of view by members of the 
Security Council in a positive and constructive 
mamier in a number of important respects. The 
late lamented Ambassador ^Vzmi stated on Octo- 
ber 14, 1954, that since March 1954 when the Se- 
curity Council previously debated this question 
Egj'pt lias refrained from "any interference with 
vessels conveying goods to Israel or coming from 

'.Made in the Swurity Council on Jan. 4 (U.S./U.N. 
yresa relcuMC •>Uri). For an earlier statement by Mr. 
I-odRp, 8ee nuLLCTiN of Apr. 12, 1054, p. ."569. 


'For summaries of Security Council discussions on 
Israel's complaint about "restrictions imposed by Egypt 
on the passage of ships through the Suez Canal," Bee ibid.. 
Aug. 6, 1951, p. 239, and Sept. 3, 1951, p. 396. For text of 
Security Council resolution, see ibid., Sept. 17, 19f)l, p. 479. 

Departmenf of State Bulletin 

Israel ports and passing through the Suez Canal." 
Egypt has here shown a spirit of conciliation that 
we must commend and encourage. Further action 
to give full effect to the decision of September 1, 
1951, to allow the passage of the Bat Galini, an 
Israeli ship, to Israel and to cease interference 
with Israeli shipping as well as neutral shipping 
carrying goods to and from Israel will confirm our 
respect for Egypt as the legitimate custodian of 
the Suez Canal only recently reasserted by her 
historic agreement with the United Kingdom. 
Anything less than this will not be consistent with 
the spirit and intent of the resolution of Septem- 
ber 1, 1951, nor in our opinion with its express 

I should like to conclude, Mr. President, on a 
note of optimism and hope that both Israel and 
Egypt will take further steps to reduce tensions, 
to settle their differences in accordance with the 
spirit and intent of the decisions of the United 
Nations, and thereby to establish the conditions 
for a peace that can only be beneficial to both. I 
believe it is fair to say that during the past 12 
months there has been a lessening of the tensions 
surrounding the Palestine question. Egypt has 
contributed to that result. Israel has shown for- 
bearance and restraint in the conduct of her case 
here. Israel might well have shown impatience 
and resentment that she was not granted imme- 
diate satisfaction in such a case as this, where the 
majority of the Council have shown they believed 
the right to be on her side. Continued coopera- 
tion by both sides in the efforts of the Security 
Coimcil to eliminate the causes of friction between 
them should be the object of all around this table. 
The United States will continue to use its best 
efforts to achieve this end. 

U.S. Not To Participate in Worit 
of Commodity Trade Commission 

'Statement by Walter M. Kotschnig 
\cting U.S. Representative to ECOSOC ' 

At the last session of the Council I stated that 
my delegation hoped to be able to announce at this 
session whether my Government would participate 

in the Commission on International Commodity 
Trade. In this connection I am now autliorized 
to make the following statement : 

"The United States Government is not now pre- 
pared to participate in the work of the Commission 
on International Commodity Trade. It wishes 
for the present to keep in close contact with the 
Commission's work as it develops in the hope that 
it might be able to be of possible assistance. The 
United States Government will be prepared to re- 
examine the question of its eventual participation 
after the Commission's terms of reference and its 
scope of activities have been defined." 


In a report on "Conunodity Trade and Eco- 
nomic Development" prepared at the request of the 
General Assembly,^ a group of experts recom- 
mended the establishment of a commission to con- 
sider and make recommendations to the Economic 
and Social Council on proposals for stabilization 
of world commodity markets. This recommenda- 
tion was approved in principle by Ecosoc with 
the adoption of Kesolution 512 A at its seventeenth 
session in April 1954, over the opposition of the 
United States. The resolution charged the pro- 
posed Commission primarily with the responsi- 
bility for examining and making recommenda- 
tions on measures designed to prevent excessive 
fluctuations in the prices of and volimie of trade 
in primary commodities, including measures re- 
lating to the maintenance of an equitable price 
relationship between primary commodities and 
manufactured goods in international trade, and 
for keeping developments in world commodity 
markets under review. 

At its eighteenth session in August 1954 Ecosoc, 
again over U.S. opposition, adopted Resolution 
557 F, which set forth in detail the bases on which 
the Commission would be constituted and called 
for its first meeting to be held early in 1955. The 
Secretary-General recently announced that the 
Commission's first session would begin on January 

At the resumed eighteenth session of Ecosoc 
early in December 1954, the Council elected the 18 

' Made in the U.N. Economic and Social Council on Dec. 
16 (U.S.Af.N. press release 2092). Mr. Kotschnig is Di- 
rector of the Office of International Economic and Social 
Affairs, Department of State. 

January 77, 1955 

= U.N. doe. E/2ril9. For a stiitenient on tlie report made 
by Preston Hotchkis, U.S. representative to Ecosoc, at 
the seventeenth session of the Council, see BtnxETiN of 
Ma.v 10, 19.54, p. 725. 

menibei-s of the Commission to serve their first 
term. The United States was among tliose elected, 
despite the fact tliat prior to tiio election it had 
given no final indication whether or not it was 
prepared to particiiiate in the work of the Com- 

U.S. Delegations to 
International Conferences 

WHO Executive Board 

The Department of State announced on .Janu- 
ary 6 (press release 5) that Dr. II. van Zile Hyde, 
chief of the Division of International Health, 
Public Health Service, Department of Health, 
Education, and "Welfare, will olliciate as chairman 
at the 15th session of the Executive Board of the 
"World Health Organization ("Who), which is 
scheduled to meet at Geneva on January 18, 1955. 

In his capacity as the board member designated 
by the United States, Dr. Hyde will be assisted 
by the following advisei"s : 

David M. French, Office of iDternational Administration, 

Unreau of International Organization Affairs, De- 

imrtnieiit of State 
Arthur S. Osborne, M. D., medical director, Public Health 

Service, Department of Health, Education, and 


The 15th session will be preceded by a meeting 
of the Executive Board's Standing Committee on 
Administration and Finance, of which Dr. Hyde 
is a member, which is to be convened on Jan- 
uary 10. 

The Executive Board, the executive organ of 
the "World Health Assembly, the supreme author- 
ity of Who, consists of 18 persons who are desig- 
nated by as many member states elected by the 
"World Health Assembly. Its chief function is to 
give effect to the decisions and policies of the As- 
sembly. It prepares the agenda of meetings of the 
Assembly, reviews and comments on the proposed 
program and budget estimates prepared by the 
Director General, and submits to the Assembly a 
general program of work covering a specified pe- 
riod. In agreement with the regional committees, 
the Board appoints tlie regional directors. The 
Executive Board is emjwwered to take emergency 
mejusures witliin the functions and financial re- 
sources of the Organization in order to deal with 
events requiring immediate action. 

Items in the provisional agenda relate to ( 1 ) the 


reports of various expert and special committees 
of Who, such as that on pharmacopoeia; (2) pro- 
gram and budget proposals for 1956; (3) legis- 
lative developments in the United Nations Ex- 
panded Program of Technical Assistance for the 
economic development of underdeveloped coun- 
tries, and "Who's participation in the expanded 
program; (4) revision of the rules of procedure 
of the "World Health Assembly ; and (5) organiza- 
tional and administrative problems concerning the 
regional committees of the World Health Organ- 

U.S. and Venezuela Amend 
Air Transport Agreement 

Following is an exchange of diploTnatic notes 
hetioeen the Department of State and the Emhassy 
of Venezuela amending the bilateral Air Transport 
Agreement signed at Caracas on August IJ^. 1953.' 


December 30, 195i 

Excellency : I have the honor to refer to your 
Excellency's note No. 3077 dated December 30, 
1954 proposing that Routes 1 and 2 of Schedule 
Two of the annex to the bilateral Air Transport 
Agreement between the United States and Vene- 
zuela be amended to read as follows : 

1. From Venezuela, except Maracaibo, via Neth- 
erlands "^'est Indies and the Dominican Republic, 
to New York and beyond to Canada and beyond. 

2. From Venezuela, via the Netherlands "\A"est 
Indies, Jamaica and Cuba to Miami. 

The Government of the United States agrees to 
this amendment and to the suggestion that your 
Excellency's note of December 30, 1954 and this 
reply shall constitute an agreement amending 
Routes 1 and 2 of Schedule Two of the annex to 
the bilateral Air Transport Agreement. 

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

For the Secretary of State : 

Edward J. Sparks 
His Excellency 
Senor Dr. Cesar Gonzalez, 
AmhaJisador of Venezuela. 

' I'ress release 459 dated Aug. 26, li^.S. 

Department of State Bulletin 


embajada de venezuela 

washington, d.c. 
3077 December 30, 1954 

Excellency : I have the honor to refer to the 
Air Transport Agreement between the United 
States and Venezuela signed in Caracas, Vene- 
zuela on August 14, 1953. The Government of 
Venezuela proposes that Schedule Two, Routes 1 
and 2 of the Annex of said Agreement be amended 
to read as follows : 

1. From Venezuela, except Maracaibo, via 
Netherlands West Indies and the Dominican Re- 
public, to New York and beyond to Canada and 

2. From Venezuela, via the Netherlands West 
Indies, Jamaica and Cuba to Miami. 

It is suggested that if the above amendments are 
acceptable to the Government of the United States, 
this note, together with your Excellency's reply 
thereto accepting these proposals, shall constitute 
an agreement amending Routes 1 and 2 of Sched- 
ule Two of the Annex of said Air Transport 
Agreement between the United States and Vene- 

Accept, Your Excellency, the assurances of 
highest and distinguished consideration. 

Cesar Gonzalez 

iCurrent Treaty Actions 



International plant protection convention. Done at Rome 
December 6, 1951. Entered into force April 3, 1952.' 
Adherence deposited: Greece, December 9, 1954. 



Convention for tbe avoidance of double taxation with re- 
spect to taxes on Income. Signed at Washington July 
22, 1954. Entered into force December 20, 1954. 
Proclaimed by the President: December 24, 1954. 


Agreement on dates and procedures for the return of 4 
subchasers type RPC, 8 torpedo boats type PT, and 15 
landing craft infantry type LCI of the U.S. Navy re- 

' Not in force for the United States. 


ceived by the U.S.S.R. under the Lend-Lease Act. Signed 
at Washington December 22, 1954. Entered into force 
December 22, 1954. 


Agreement amending air transport agreement signed Au- 
gust 14, 1953 (TIAS 2813). Effected by exchange of 
notes at Washington December 30, 1954. Entered into 
force December 30, 1954. 


Transfer of Inspection Functions 

Department circular dated December 30 

1. Effective December 31, 1954, the Deiiartment's in- 
spection functions are transferred to the Office of the 
Under Secretary for Administration (O), and the organi- 
zational symbol of the Foreign Service Insjjection Corps 
is changed to 0/FI. Personnel now assigned to tbe For- 
eign Service Inspection Corps will be transferred to O. 

2. The name of the Bureau of Inspection, Security and 
Consular Affairs is changed to "Bureau of Security and 
Consular Affairs" (SCA). 


RoUand Welch as Deputy Director of the Visa Office, 
P>ureau of Security and Consular Affairs, effective 
January 16. 

January 7 7, 7955 


The Senate on December 2 confirmed the following : 
Gerald A. Drew to be Ambassador to Bolivia 
Robert F. Woodward to be Ambassador to Costa Rica 
Robert C. Hill to be Ambassador to El Salvador 
Jack K. McFall to be Ambassador to Finland 
Norman Armour to be Ambassador to Guatemala 
John E. Peurifoy to be Ambassador to Thailand 
Edward T. Wailes to be Ambassador to the Union of South 




Preservation of Halibut Fishery of Northern Pacific 
Ocean and Bering Sea. TIAS 2900. Pub. 5372. 7 pp. 

Convention between the United States and Canada- 
Signed at Ottawa March 2, 1953. Entered into force 
October 28, 1953. 

Recent Releases 

For sale by the Superintendent of Documentu, U.S. Oov- 
emmcnt Printing Office, Washington 25, D.C. Address 
requests direct to the Superintendent of Doeurnent.1 e.r- 
cept in the case of free publieations, which may he 
obtained from the Department of State. 

Utilization of Defense Installations Within Empire of 
Ethiopia. TIAS 2964. Pub. 5512. 12 pp. 10({. 

Agreement between the United States and Ethiopia — 
Signed at Washington May 22, 19!)3. Entered into force 
May 22, 19.53. 

Exemption of United States Airline Companies Frcn 

Certain German Taxes. TIAS 3003. Pub. 5576. 2 pp. 


Agreement between the United States and the Federal 

Republic of Germany. Exchange of notes — Signed at 

Washington July 22, 19.54. Entered into force July 22, 

1954 ; operative retroactively July 1, 19.50. 

Technical Cooperation— Agriculture, Forestry, and Fish- 
eries Program. TIAS 2840. Pub. 5272. 16 pp. 100. 
Agreement between the United States and Egypt — Signed 
at Cairo May 21, 1953. Entered into force May 21, 1953. 

Technical Cooperation, Program for Public Works Devel- 
opment. TIAS 2842. Pub. 5274. 14 pp. 10(#. 

Agreement between the United States and Egypt — Signed 
at Cairo Mar. 12, 1053. Entered into force Mar. 12, 1953. 

Technical Cooperation, Public Health and Disease Con- 
trol Program, Quarantine Services for Pilgrims. TIAS 
2S45. I'ub. 5277. 10 pp. lOfJ. 

Agreement between the United States and Saudi Arabia — 
Signed at Jidda June 29, 1953. Entered into force June 

29, 19.53. 

Rama Road in Nicaragua. TIAS 2853. Pub. .5294. 3 
pp. ->(f. 

Agreement between the United States and Nicaragua. Ex- 
change of notes — Signed at Wa.shington Sept. 2, 1953. En- 
tered into force Sept. 2, 19.53. 

Technical Cooperation, Special Technical Services. TIAS 

2855. Pub. 5296. 13 pp. 10!?. 

Agreement between the United States and Panama — 
Signed at Panama City June 26, 1953. Entered into force 
June 26, 1953. 

Technical Cooperation, Program for Technical Assist- 
ance. TIAS 2856. Pub. .52!»7. 5 pp. 5(». 

Agreement between the United States and Afghanistan — 
Signed at Kabul June 30, 19.53. Entered into force June 

30, 19.53. 

Army Mission to Honduras. TIAS 2873. Pub. ,5328. 2 
pp. 5<(. 

Agreement between the United States and Honduras, ex- 
tending agreement of March 0, 1950. Exchange of notes — 
Signed at Wawhlngton October 5 and November 23, 1953. 
Entered Into force November 23, 1953. 


Mexican Agricultural Workers. TIAS 3932. Pub. 5457. 
36 pp. 15tf. 

Agreements between the United States and Mexico, renew- 
ing and amending the agreement of August 11, 1951, as 
amended, and establishing a Joint Migratory Labor Com- 
mission. Exchanges of notes — Signed at Mexico March 
10, 1954. Entered into force March 10, 1954. 

Publications of the Department of State, October 1, 1929- 
January 1, 19.53. Pub. 50.59. 207 pp. $1.00. 

A cumulative of the numbered publications arranged 
alphabetically by subject for ease of reference. 

Participation of the United States Government in Inter- 
national Conferences, July 1, 1952-June 30, 1953. Pub. 
5;j;{4. International Organization and Conference Series 
I, 27. 240 pp. 65<}. 

Includes the composition of United States delegations and 
summaries of the proceedings. 

Publications of the Department of State, July 1, 1952- 
January 1, 1954. Pub. .5380. 65 pp. 45«'. 

A cumulative list of the numbered publications published 
.semiannually arranged alphabetically by subject for ease 
of reference. 

Our Southern Partners: The Story of Our Latin Amer- 
ican Relations. Pub. .5604. Inter-American Series 49. 
48 pp. 25«S. 

This pamphlet reports on the great economic and social 
changes at work in Latin America today and the key 
objectives of U.S. foreign policy in relation to the Ameri- 
can republics. 


20 pp. 

Pub. .5674. 

Near and Middle Eastern Series 17 

A background summary outlining briefly Israel's history, 
the many significant factors affecting the country's eco- 
nomic and social development, and American foreign 
IK)licy towards Israel and the Middle East as a whole. 

Economic and Technical Cooperation. 

.5340. (i pp. 5('. 

TIAS 2762. Pub. 

.\greenients between the United States and Indonesia. 
Exchanges of notes — Signed at Washington and Djakarta 
January 5 and 12, 1953, and Djakarta January 4 and 5, 
19.52. Entered into force January 5, 1952. 

Amity and Economic Relations. TIAS 2864. 
42 pp. 20('. 

Pub. .5.352. 

Treaty, witli exchanges of notes between the United 
Stales ami Ktliiopia— Signed at Addis Ababa September 
7, 1!I5I. KntciiMl into force October 8, 1953. 

Defense, Tax Relief for Offshore Procurement and Other 
Foreign Aid Programs. TIAS 2871. Pub. 5323. 3 pp. 

Agreement between the United States and Yugoslavia. 
Exchange of notes— Signed at Belgrade July 2.3, 1953. 
Entered into force July 23, 19.53. 

Department of State Bulletin 

January 17, 1955 


Vol. XXXII, No. 812 

American Principles. Labor's Concern With Foreign 

Affairs (Murphy) 84 

Asia. Foreign Ministers of Manila Pact Countries To 

Meet at Bangkok 89 

Canada. U.S. and Canada Meet Informally To Discuss 

Trade Relations (Joint communique) 97 

Claims and Property. Compensation to Japanese for Dam- 
age Resulting From Nuclear Tests (texts of notes) 90 

Congress. The 

Current Legislation 98 

The State of the Dnion (Eisenhower) 79 

Economic Aflfairs 

Labor's Concern With Foreign Affairs (Murphy) .... 84 

President Decides Against Further Restrictions on Wood 

Screws 97 

U.S. and Canada Meet Informally To Discuss Trade Re- 
lations (Joint communique) 97 

U.S. and Venezuela Amend Air Transport Agreement 

(texts of notes) 112 

U.S. Not To Participate in Work of Commodity Trade 

Commission (Kotschnig) Ill 

Esrypt. Discussion of Israeli Complaint on Restrictions in 

Suez Canal (Lodge) 110 

Europe. NATO Infrastructure Program 89 

Foreign Service. Confirmations (Drew, Woodward, Hill, 

McFall, Armour, Peurifoy, Walles) 113 

France. French Action on Western Defense Treaties 

(Eisenhower) 80 

Immigration and Nataralization. Japanese-American Or- 
phans To Be Admitted to U.S 90 

International Organizations and Meetings 

Foreign Ministers of Manila Pact Countries To Meet at 

Bangkok 89 

WHO Executive Board 112 


Discussion of Israeli Complaint on Restrictions In Suez 

Canal (Lodge) 110 

United States-Israel Friendship in the Free World 

(Lawson) 92 


Compensation to Japanese for Damage Resulting From 

Nuclear Tests (texts of notes) 90 

Japanese-American Orphans To Be Admitted to U.S. . . 90 

Korea. Ending of Combatant Activities In Korea and 

Adjacent Waters (Eisenhower) 90 

Military Affairs 

Adapting U.S. Military Strength To Meet (Hianglng World 

Conditions (Wilson, Eisenhower) 87 

Ending of Combatant Activities in Korea and Adjacent 

Waters (Eisenhower) 90 

NATO Infrastructure Program 89 

Matual Security. French Action on Western Defense 

Treaties (Eisenhower) 80 

North Atlantic Treaty Organization. NATO Infrastruc- 
ture Program 89 

Panama. Death of President of Panama (Eisenhower, 

Dulles) 91 

(Presidential Documents 
Adapting U.S. Military Strength To Meet Changing World 

Conditions 87 

Death of President of Panama 91 

Ending of Combatant Activities in Korea and Adjacent 

Waters 90 

Prench Action on Western Defense Treaties 80 

President Decides Against Further Restrictions on Wood 

Screws 97 

The State of the Dnion 79 

^oblications. Recent Releases 114 

itate. Department of 

iesignaUon (Welch) 113 

Transfer of Inspection Functions 113 

Treaty Information 

Current Actions 113 

U.S. and Venezuela Amend Air Transport Agreement 

(texts of notes) 112 

U.S.S.R. Forced Labor In the Soviet Union and Its Satel- 
lites (Johnson, Green) (text of resolution) .... 99 
United Nations 
Discussion of Israeli Complaint on Restrictions in Suez 

Canal (Lodge) no 

Forced Labor in the Soviet Union and Its Satellites 

(Johnson, Green) (text of resolution) 99 

U.S. Not To Participate in Work of Commodity Trade 

Commission (Kotschnig) m 

Venezoela. U.S. and Venezuela Amend Air Transport 

Agreement (texts of notes) 112 

Name Index 

Allison, John M 90 

Armour, Norman 113 

Drew, Gerald A 113 

Dulles, Secretary 91 

Eisenhower, President 79, 80, 87, 90, 91, 97 

Gonzalez, Cesar 112 

Green, James F 106 

Hill, Robert C 113 

Johnson, A. M. Ade 99 

Kotschnig, Walter M Ill 

Lawson, Edward B 92 

Lodge, Henry Cabot, Jr 110 

McFall, Jack K 113 

Murphy, Robert D 84 

Peurifoy, John E 113 

Shigemitsu, Mamoru 90 

Sparks, Edward J 112 

Walles, Edward T 113 

Welch, Rolland 113 

Wilson, Charles E 87 

Woodward, Robert F 113 

Check List of Department of State 
Press Releases: January 3-9 

Releases may be obtained from the News Divi- 
sion, Department of State, Washington 25, D. C. 
Travel restrictions on Soviet citizens. 
Meeting on Manila Pact. 
Dulles : death of President Rem6n. 
Orphans entering under Refugee Relief 

Act (rewrite). 
Delegation to WHO meeting. 
Notes regarding Bikini claims. 
U.S.-Canadian meeting on trade prob- 
Dulles : congratulations to Ambassador 
U.S.-YugosIav agreement on wheat and 

Murphy : Italian-American Labor Coun- 

















*8 1/7 

t9 1/7 

10 1/7 

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t Held for a later issue of the Bulletin. 

5 *** 





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

1938, Volume III, The Far East 

Documents in this volume deal with the undeclared war 
between China and Japan and with problems arising from it. 
The deepening of the international crisis caused by the conflict 
in China and the danger of general war among the Great 
Powers form the principal subjects of this volume of papers 
from State Department files. The prominent role played by 
the Soviet Union and by Chinese Communists in developing the 
situation is pictured in many documents now published for 
the first time. 

Significant reports on the chance of mediation, on the possi- 
bility of war between the powers, on the future of the Republic 
of China, and on specific problems resulting from intensifica- 
tion of the undeclared war are revealed in this 768-page publi- 
cation. Interest in the Communist question in China increased 
during 1938, and this volume also includes a series of reports 
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Ates o* 



the President to the Congress 119 

THE PEACE WE SEEK • Address by Secretary Dulles ... 123 

TIONS • by Assistant Secretary Robertson 126 

ITALY IN 1955 • by Ambassador Clare Boothe Luce 132 




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January 24, 1955 

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Note: Contents of this publication are not 
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The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Governntent tcith information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
selected press releases on foreign pol- 
icy, issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on txirious phases of 
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tion is included concerning treaties 
and international agreements to 
which the United States is or may 
become a party and treaties of gen- 
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Publications of the Department, as 
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Further Developing the Foreign Economic Policy 
of the United States 


The White House, 

January 10, 1955. 
To the Congress of the United States : 

For the consideration of the Congi'ess, I submit 
my recommendations for further developing the 
foreign economic policy of the United States. Al- 
though largely based upon my special message to 
the Congress of March 30, 1954,^ these proposals 
are the product of fresh review. 

The Nation's enlightened self-interest and sense 
of responsibility as a leader among the free nations 
require a foreign economic program that will stim- 
ulate economic gi-owth in the fi"ee world through 
enlarging opportunities for the fuller operation of 
the forces of free enterprise and competitive mar- 
kets. Our own self-interest requires such a pro- 
gram because (1) economic strengtli among our 
allies is essential to our security; (2) economic 
growth in underdeveloped areas is necessary to 
lessen international instability growing out of the 
vulnerability of such areas to Communist pene- 
tration and subversion ; and (3) an increasing vol- 
ume of world production and trade will help as- 
sure our own economic growth and a rising stand- 
ard of living among our own people. 

In the worldwide struggle between the forces of 
freedom and those of commmiism, we have wisely 
recognized that the security of each nation in the 
free world is dependent upon the security of all 
other nations in the free world. The measure of 
that security in turn is dependent upon the eco- 
aomic strength of all free nations, for without eco- 
aomic strength they camiot support the military 
stablishments that are necessary to deter Com- 
nunist armed aggression. Economic strength is 

' H. Doc. 63, 84th Cong., 1st sess. 
' BnxETiN of Apr. 19, 1054, p. 602. 

indispensable, as well, in securing themselves 
against internal Communist subversion. 

For every country in the free world, economic 
strength is dependent upon high levels of economic 
activity internally and high levels of international 
trade. No nation can be economically self-suffi- 
cient. Nations must buy from other nations, and 
in order to pay for what they buy they must sell. 
It is essential for the security of the United States 
and the rest of the free world that the United 
States take the leadersliip in promoting the 
achievement of those high levels of trade that wiU 
bring to all the economic strength upon which the 
freedom and security of all depends. Those high 
levels of trade can be promoted by the specific 
measures with respect to trade bari-iers recom- 
mended in this message, by the greater flow of 
capital among nations of the free world, by con- 
vertibility of currencies, by an expanded inter- 
change of technical counsel, and by an increase in 
international travel. 

From the military standpoint, our national 
strength has been augmented by the overall mili- 
tary alliance of the nations constituting tlie free 
world. This free-world alliance will be most 
firmly cemented when its association is based on 
flourishing mutual trade as well as common ideals, 
interests, and aspirations. Mutually advanta- 
geous trade relationships are not only profitable, 
but they are also more binding and more enduring 
than costly grants and other forms of aid. 

Today numerous uneconomic, manmade barriers 
to mutually advantageous trade and tlie flow of 
investment are preventing the nations of the free 
world from achieving tlieir full economic poten- 
tial. International trade and investment are not 
making their full contribution to production, em- 
ployment, and income. Over a large area of the 
world currencies are not yet convertible. 

onoory 24, 7955 


We and our friends abroad must together lui- 
dertake the lowering of the unjustifiable barriers 
to trade and investment, and we must do it on a 
mutual basis so that the benefits may be shared by 

Such action will add strength to our own domes- 
tic economy and help assure a rising standard of 
living among our people by opening new markets 
for our farms and factories and mines. 

The program that I am here lecommending is 
moderate, gradual, and reciprocal. Radical or 
sudden tariff reductions would not be to the inter- 
est of the United States and would not accomplish 
the goal we seek. A moderate program, however, 
can add immeasurably to the security and well- 
being of the United States and the rest of the free 

Trade Agreement Authority 

I request a 3-year extension of Presidential au- 
thority to negotiate tariff reductions with other 
nations on a gradual, selective, and reciprocal ba- 
sis. This authority would permit negotiations 
for reductions in those barriers that now limit the 
markets for our goods throughout the world. I 
shall ask all nations with whom we trade to take 
similar steps in their relations with each other. 

The 3-year extension of the Trade Agreements 
Act should authorize, subject to the present peril 
and escape clause provisions: 

1. Reduction, through multilateral and recip- 
rocal negotiations, of tariff rates on selected com- 
modities by not more than 5 percent per year for 
3 years ; 

2. Reduction, through multilateral and recipro- 
cal negotiations, of any tariff rates in excess of 50 
percent to that level over a 3-year period ; and 

3. Reduction, by not more than one-half over a 
3-year period, of tariff rates in effect on January 
1, 1945, on articles which are not now being im- 
ported or which are being imported only in neg- 
ligible quantities. 

The General Agreement on Tariffs and Trade 

For aijproximately 7 years the United States has 
cooperated with all the major trading nations of 
the free world in an effort to reduce trade barriers. 
The instrument of cooperation is the Greneral 
Agreement on Tariffs and Trade. Through this 


agreement the United States has sought to carry 
out the provisions and purpose of the Trade 
Agreements Act. 

The United States and 33 other trading coun- 
tries are now reviewing the provisions of the agree- 
ment for the purpose of making it a simpler and 
more effective instrument for the development of 
a sound system of world trade.' 'V\1ien the cur- 
rent negotiations on the revision of the organiza<- 
tional provisions of the general agreement are sat-r 
isfactorily completed, the results will be submitted 
to the Congress for its approval. 

Customs Administration and Procedure 

Considerable progress has been made in freeing 
imports from unnecessary customs administrativf 
burdens. Still more, however, needs to be done ir 
the three areas I mentioned in my message lasi 
year: (1) the simplification of commodity defini 
tions, classification, and rate structures; (2) im 
provement in standards for the valuation of im 
ports; and (3) further improvement of procedure; 
for customs administration. 

An important step toward simplification of tlv 
tariff structure was taken by the Congress last yea 
with the passage of the Customs Simplificatioi 
Act which directs the Tariff Commission to stud; 
the difficulties of commodity classification of im 
ports. The interim report of the Tariff Commi? 
sion to be made by next March 15 should help en 
able the Congress to determine whether furthe 
legislative steps should then be taken or shouL 
await submission of the final report. 

The uncertainties and confusion arising fror 
the complex system of valuation on imported ai 
tides cause unwarranted delays in the determina 
tion of customs duties. I urge the Congress t 
give favorable consideration to legislation fo 
remedying this situation. 

The improvement of customs administration n 
quires continuous effort, as the Congress recoj 
nized by enacting the Customs Simplification Act 
of 1953 and 1954. The Treasury Department i 
its annual report to the Congress will review tli 
remaining reasons for delay or difficulty in proi 
essing imported articles through customs and wi 
propose still further technical amendments t 
simplify customs procedures. 

' Ibid., Nov. 8, 1954, p. 711, and Nov. 22, 1954, p. 772. 
Deparfment of Sfafe Bulht'i 


Jnited States Investment Abroad 

The whole free world needs capital ; America is 
its largest source. In that light, the flow of capi- 
tal abroad from our country must be stimulated 
uid in such a manner that it results in investment 
largely by individuals or private enterprises rather 
than by government. 

An increased flow of United States private in- 
vestment funds abroad, especially to the under- 
ieveloped areas, could contribute much to the ex- 
Dansion of two-way international trade. The 
mderdeveloped countries would thus be enabled 
nore easily to acquire the capital equipment so 
3adly needed by them to achieve sound economic 
^owth and higher living standards. This would 
io much to offset the false but alluring promises of 
;he Communists. 

To facilitate the investment of capital abroad 
[ recommend enactment of legislation providing 
for taxation of business income from foreign sub- 
;idiaries or branches at a rate 14 percentage points 
ower than the corporate rate on domestic income, 
i,nd a deferral of tax on income of foreign branches 
mtil it is removed from the country where it is 

I propose also to explore the further use of tax 
reaties with the possible recognition of tax con- 
essions made to foreign capital by other countries. 
Jnder proper safeguards, credit could be given for 
oreign income taxes which are waived for an ini- 
ial limited period, as we now grant credit for 
axes which are imposed. This would give maxi- 
lum effectiveness to foreign tax laws designed to 
ncourage new enterprises. 

As a further step to stimulate investment abroad, 
recommend approval by the Congress at the ap- 
ropriate time of membership in the proposed In- 
smational Finance Corporation, which will be 
filiated with the International Bank for Recon- 
ruction and Development.* This Corporation 
' ill be designed to increase private investment in 
ss-developed countries by making loans without 
•overnment guaranties. Although the Corpora- 
on will not purchase stock, it will provide venture 
pital through investing in debentures and simi- 
r obligations. Its operation will cover a field 
' )t dealt with by an existing institution. 
1 The executive branch will continue through our 

I 'For a U. S. statement on the proposed International 
aanee Corporation, see iUd., Nov. 29, 1954, p. 813. 

nuory 24, 7955 

diplomatic representatives abroad to encourage a 
climate favorable to the private enterprise concept 
in investment. 

We shall continue to seek other new ways to en- 
large the outward flow of capital. 

It must be recognized, however, that when 
American private capital moves abroad it prop- 
erly expects to bring home its fair reward. This 
can only be accomplished in the last analysis by 
our willingness to purchase more goods and serv- 
ices from abroad in order to provide the dollars 
for these growing remittances. This fact is a fur- 
ther compelling reason for a fair and forward- 
looking trade policy on our part. 

Technical Cooperation 

The United States has a vast store of practical 
and scientific know-how that is needed in the un- 
derdeveloped areas of the world. The United 
States has a responsibility to make it available. 
Its flow for peaceful purposes must remain un- 

United States participation in technical coop- 
eration programs should be carried forward. 
These programs should be concerned with know- 
how rather than large funds. In my budget mes- 
sage next week, I shall recommend that the Con- 
gress make available the funds required to support 
the multilateral technical cooperation programs 
of the United Nations. The bilateral programs 
of the United States should be pressed vigorously. 

International Travel 

The United States remains committed to the 
objective of freedom of travel throughout the 
world. Encouragement given to travel abroad 
is extremely important both for its cultural and 
social importance in the free world, and for its 
economic benefits. Travel abroad by Americans 
provides an important source of dollars for many 
countries. The executive branch shall continue 
to look for ways of facilitating international 
travel and shall continue to cooperate with private 
travel agencies. 

One legislative action that would be beneficial in 
this field is the increase of the present duty-free 
allowances for tourists from $500 to $1,000 exer- 
cisable every G months. I recommend the passage 
of such legislation. 


Trade Fairs 

Intermitional trade fuii-s liave been of major 
imiKjrtaiiio fo foreign countrie-s for many years, 
and most of the trading nations have strengthened 
the promotional aspects of tlieir industrial dis- 
plays in many fairs with a central exhibit de- 
signed to emphasize the industrial progress and 
achievement of the nation. 

Soviet and satellite exhibits, for example, have 
been costly, well-planned, and housed in expensive 
structures designed to convey the impression that 
the U. S. S. R. is producing on a large scale for 
peace and is creating a paradise for workers. 

The United States, which has a larger volume 
of international trade than any other nation, un- 
til recently has been conspicuous by its absence 
at these trade fairs. American visitors and par- 
ticipants have jKjinted out the failure of their 
Government to tell adefpiately the story of our 
fi-ee-enterprise .system and to provide effective 
international trade promotion cooperation. 

As a result, I have undertaken an international 
trade fair program under the direction of the 
Department of Connnerce. Since the inaugura- 
tion of (his program in August, participation has 
been authorized in 11 fairs to be held before June 
30. Sixteen additional fairs are being considered 
for exhibition purposes in the latter part of the 
year. The fii-st fair in which the United States 
presented a central exhibit is that at Bangkok, 
which oix-ned December 7, 1054. At it our exliibit 
was awarded first prize. Over 100 American com- 
panies supplied items for inclusion in it. 

I shall ask the Congress for funds to continue 
this program. 


Convertibility of currencies is required for the 
development of a steadily rising volmne of world 
trade and investment. The achievement of con- 
vertibility has not Ix-en possible in the ixjstwar 
period due to dislocations caused by the war, 
inflation, and other domestic economic difficulties 
in many countries, which have contributed to an 
iini)alance in international trade and paymenta 
However, steady progress, particularly by west- 
ern European countries, is being made toward 
our mutual objective of mstwing currency con- 

vertibility. The foreign ec 

onomic progi-am pro- 

|)osed here will make an important contribution 
to the achievement of convertibility. 



No single group within America has a greatei 
stake in a healthy and expanding foreign trade 
than the farmers. One-fourth to one-third oi 
some major crops, such as wheat, cotton, and to- 
bacco, must find markets abroad in order to main- 
tain farm income at high levels. 

If they are to be succe.ssf ul, programs designed 
to promote the prosperity of agriculture should 
be consistent with our foreign economic program 
We must take due account of the effect of anj 
agricultural program on our foreign economic re- 
lations to assure that it contributes to the develop- 
ment of healthy, expanding foreign markets ovei 
the years. 


The series of recommendations I have just mad( 
are all components of an integrated program 
pointing in a single direction. Each contribute 
to the whole. Each advances our national secu 
rity by bringing added strength and self-suffi 
ciency to our allies. Each contributes to om 
economic growth and a rising standard of livinj 
among our people. 


U. N. Secretary-General's Return 
From Mission to Red Cliina 

Statement by the President 

White House press release dated January 14 

The Secretary-General of the United Nation: 
has returned from his mission to Peiping. He ha; 
not yet formally reported but has indicated tha' 
his visit represented only a first stage in Unitec 
Nations negotiations to achieve the release of thi 
American airmen and other United Nations per 
sonnel detained in Red China. He believes tha 
progress has been made and urges that restrain 
be exercised to permit of further efforts. 

Quite naturally, the immediate reaction of al 
Americans to the Secretary-General's announce 
ment is disappointment. All of us are righth 
aroused that our airmen have not long since beei 
released by their Communist captors in accord 
ance with the clear terms of the Korean Armistice 

Deparlmenf of State Bulletir 

We must never forget one fundamental thing : 
We want our airmen returned safely to their 

All Americans are united and dedicated to this 
cause. Truth and right are on our side. We must 
have faith in the community of nations and in the 
tremendous influence of world opinion. 

It will not be easy for us to refrain from giving 
expression to thoughts of reprisal or retaliation. 

Yet this is what we must not now do. We must 
not fall into a Communist trap and through im- 
petuous words or deeds endanger the lives of those 
imprisoned airmen who wear the unifonn of oui" 

They are fighting men, trained to discipline. We 
now owe them discipline from ourselves. We must 
support the United Nations in its efforts so long as 
those efforts hold out any promise of success. 

The Peace We Seek 

Address hy Secretary Dulles 

I should like to talk with you about peace. 
"Peace" is one of the most beautiful and honored 
words of our language. However, the word has 
been so tarnislied and besmirched by Soviet Com- 
munist propaganda that today, in their mouths, 
it is scarcely recognizable. 

It is time that we rescue this great word from 
that undeserved fate and proclaim true peace 
throughout the lands. 

Peace is a woid which is rich in its meaning. 
It implies an absence of violence and warfare. 
But there is much more to it than that. It also 
implies the inner tranquillity which comes to 
those who are enabled to pursue happiness and 
develop their God-given possibilities of body, 
mind, and soul. 

To the orthodox Conununists on the other hand, 
peace is a negative, barren concept. It means a 
state of enforced conformity where all men think 
alike, believe alike, and act in accordance with a 
pattern imposed by their rulers, who constitute 
,what they call a dictatorship of the proletariat. 

If that system of conformity can be made world- 
wide, then, they argue, there will be an end to war. 
Thus, in the name of peace they seek to extend 
their power throughout the world. 

' Made at the centennial inaugural luncheon of the 
Young Women's Christian Association at New York, N. Y., 
on Jan. 11 (press release 11). 

January 24, 1955 

One thing is clear about this kind of peace : the 
international Communists cannot establish it 
without first resorting to war. This they admit. 
Of course, they use propaganda, subversion, and 
menaces to soften up others in the hope that they 
will give in without resistance. That is their 
"peace offensive." But they foresee that many 
will never peacefully accept their rule. So Lenin 
taught, and Stalin agreed, that "a series of fright- 
ful collisions between the Soviet Republic and 
the bourgeois states will be inevitable." 

The fanatical Communists believe that the end 
result — a world of total confonnity — justifies 
these frightful means. And rulers who are 
moved by a primitive lust for power find it con- 
venient to cloak their ambitions in such a doctri- 
nal garb. 

When we hear talk of peace from the Commu- 
nist camp, we must always look behind this talk 
to the nature of the Communist system. It is not 
a peace system but a force system, for only force 
can suppress the aspirations of men's soids. In- 
dividuals yearn to do what will satisfy them, not 
their masters. They want themselves to imple- 
ment the protective love which binds together the 
family unit. They want to commune with that 
higher Power whom thix)ughout the ages men 
have revered as God, and to feel that they do His 
bidding. Only under coercion do they accept a 
system which repudiates love of family, love of 



country, love of (lod, luul wliicli treats men as 
bits of mutter. That is not peace. Yet this is 
tlie false cf)nce|)t of "peace" with which the Com- 
munist.s loud their heaviest propaganda puns. 

The (lod-fearinp peoples want peace. But 
tliey seek it by u-sinj:, not suppressing, men's 
finest qualities. They know that society needs 
rules of conduct which promote harmony. But 
they (ind that the source of those rules is pri- 
marily moral or natural law, which is not man- 
made, and that the sanction for those rules is pri- 
marily a voluntary subjection to moral law, and 
not the arbitrary imposition of a police state. 

It is, of course, iimnensely difficult to preserve 
botli pejice and freedom. Nevertheless, we need 
not feel hopeless. Every year bears its harvest of 
events which show that the jjoal we seek is not be- 
yond human capacity to attain. 

Acts of Peace 

During the year there have been many acts 
of i)ertce. One was the settlement between (Jreat 
Britain and Egypt of the Suez Base controverey. 
Two years ago I was in that area. Warfare was 
close to breaking out. Indeeil. both sides were 
planning for that contingency. Nevertheless, 
coun.sels of moderation prevailed. The method 
of patient negotiation was followed, and linally 
a solution was found. It involved concessions by 
both of the parties. But today there is peace in 
the true sense, and we can hope that that example 
will extend its benign influence throughout that 
distraught Near Eastern area. 

A similar peace was made between Italy and 
Yugoslavia with relation to Trieste. Here again 
deep national feelings .seemed to conflict to a de- 
gree which permitted of no peaceful solution. A 
point was reached where both sides were moving 
troops toward the danger zone. But again the 
processes of negotiation and diplomacy were in- 
voked. Each side exercised nmderation and made 
concessions, with the result that a true peace has 
been achieved. We are entitled to hope that this 
peace, too, will spread its influence, so that the 
South European area will gain unity and strength 
to replace divisive weakness. 

The Manila Conference of bust September drew 
together colonial and anticolonial nations. Yet 
out of that Conference emerged the Pacific Char- 
ter, in which the nations of the West joined with 
the nations of the to proclaim in ringing 


terms the basic right of all peoples to self-govern- 
ment and independence. 

Also, during the past year a new start was made 
in Western Europe toward ending the national 
differences which for generations have led to re- 
current wars. These wars have steadily grown in 
scope and intensity. Tliey have so depleted Eu- 
rope's human, material, and moral strength that 
for the first time Western civilization can be seri- 
ously challenged by an atheistic system. 

It is indeed a shocking thing tliat Western Eu- 
rope, which has long been the cradle of Christian 
civilization, should also for so long have been the 
principal cockpit of war. 

To end that situation, the European Defense 
Community was conceived. It would have inte- 
grated permanently those forces which, in sepa- 
ration, have been hostile. Wlien that failed of 
adoption, this same purpose was transferred to 
the present plan for Western European union. 

There are some who treat this project as merely 
a device to rearm the Germans. That is belittlim: 
almost to the point of absurdity. Of coui*se, Ger- 
mans, like all self-respecting people, liave the right 
and duty to contribute to international peace and 
security. That, however, is but a byproduct of the 
great conception of bringing the countries of 
Western Europe into a relationship so close and | 
so permanent that it is inconceivable that they 
again should fight each other. The real issue is : 
shall the peoples of Europe be content to go on 
living in a political structure which has been the i 
world's worst fire hazard — or will they build 
something better? 

The new arrangements naturally encounter re- 
sistance. That is always the case when great deeds 
are done. The project for federal union in this! 
country encountered opposition, and in several 
states the margin of approval was meager and 
precarious. So it will be in Europe. But we can 
have good hope that this great act of peace will be 
consummated through the indispensable contribu- 
tion, by French and Germans, of tolerance, self- 
restraint, and vision. 

The United Nations during this past year 
played a notable part in serving, as its charter pre- 
scribes, as "a center for harmonizing the actions 
of nations." We eagerly await the return from 
China of its Secretary-General and his report on 
the outcome of a United Nations mission which 
critically involves issues of humanity and justice. 
Our own Nation makes its contribution to the 

Department of Stale Bulletin 

peacerul settlement of these issues by heeding the 
Biblical injunction to be "slow to anger." 

I could go on to multiply the proofs of man's 
capacity to build true peace. Last year was en- 
riched by them. A cataloging is, however, un- 
necessary. You know, as I know, that peace in 
the lofty sense of that word is in fact within 
man's reach. The limiting factor is not impossi- 
bility but the lack of well-directed effort and sac- 
rifice which could turn the possible into the actual. 

The hard fact is that, while throughout the 
ages men have longed for peace, they have sel- 
dom worked for it in a serious, intelligent, and 
sustained way. It is indeed shocking to contrast 
what men do in time of war to win victory and 
what they do in time of peace to prevent new war. 

Sacrifices for Peace 

"WHien we are at war, the nation imites and every 
mature citizen stands ready to respond to the call 
of duty. No sacrifice, even that of life itself, seems 
too great. Yet, when there is peace, men often 
think that it is sufficient to turn the task over to 
a few professionals and to hope, and perhaps to 
pray, that they will succeed. I do not minimize 
the value of those hopes and particularly of those 
prayers. They powerfully sustain those who carry 
heavy burdens. But in every country there is des- 
perate need for greater willingness to make the 
national sacrifices which may be required for 

There will never be permanent peace so long as 
men and nations reserve for war their greatest 
effort, their most sacrificial endeavor. 

In this country there is a vast urge for peace. 
We ended the fighting in Korea. We are help- 
ing, in partnership with others, to develop col- 
lective security throughout the free world. We 
shall, I hope, follow enlightened economic policies 
such as those President Eisenhower recommended 
yesterday. We extend good offices to promote acts 
of peace elsewhere, such as those I have mentioned 
and many others. 

Perhaps never before has any nation done so 
•much for peace. Our record is good, as judged 
by the past. But the past provides no proper 
standard. There is still too much complacency. 
Winning peace is a desperate struggle against an 
anemy — the war system — which so far has never 
been permanently defeated. Today that system is 
in fact sponsored by greater military power than 
las ever before existed. 

This struggle for peace cannot be won by paci- 
fism or by neutralism or by weakness. These 
methods have been tried and they have failed. 
Aggression is deterred only by an evident will 
and capacity to fight for rights more precious 
than is a debasing peace. 

But, also, peace cannot be won by truculence or 
by intolerance, without or within. Peace has to 
be planned as a campaign in which many factors 
are weighed. It is a campaign in which it may 
be necessary to strive even when success may be 
improbable, and to accept occasional reverses. In- 
deed, to deter war and to save peace we may have 
to be ready to fight, if need be, and to have the re- 
sources and the allies to assure that an aggressor 
would surely be defeated. 

In all of this the nations which truly want peace 
should be able to enlist the individual and collec- 
tive support of their people. 

To achieve true peace is, I know, a deep concern 
of the Young Women's Christian Association. 
You have grown in strength and vigor for now 100 
years. But the tasks before you remain great 
and ever more imperative. 

Therefore, I am grateful for this opportunity to 
bring to you this message — a message of hope, 
but also a message of deep urgency. 

NATO Conference To Discuss 
Problems of Defense Production 

Press release 21 dated January 12 

A NATO conference of high national production 
authorities is scheduled to meet at Paris January 
24r-26. The purpose of the conference is to bring 
together senior officials of the Nato governments 
to exchange views on problems of mutual concern 
in the fields of defense mobilization planning and 
defense production. 

The meeting is being held at the invitation of 
the Nato Defense Production Committee, which 
was established by the North Atlantic Council as 
an agency to make recommendations to the Coun- 
cil on policy questions relating to defense produc- 

Senior officials representing the United States 
from Washington will be Arthur S. Flemming, 
Director of the Office of Defense Mobilization, and 
Thomas P. Pike, Assistant Secretary of Defense 
for Supply and Logistics. 

lanuary 24, 1955 


The Growing Partnership Among Free Nations 

hy Walter S. Robertson 

Assistant Secretary for Far Eastern Affairs ^ 

It is an lionor and a privilege to speak to this 
distinfriiished group tonight, to have the opportu- 
nity of sharing with you some of our most critical 
problems. For the problems which I shall discuss 
briefly with you are not just the Government's 
problems. They are your problems and my prob- 
lems—American problems, free-world problems — 
problems demanding the utmost in wisdom, cour- 
age, and patience, if in their solution we are to 
preserve the fundamental values upon which this 
Nation was founded and became great. 

I^jst year in a press conference the President 
remarked that he thought we ought to "talk less 
about American leadership in (he world, because 
we are trying to be a good partner." Tjooking back 
at the year just past, it seems to me that a sense of 
growing partnership among the free nations, 
rather than perhaps overdynamic leadership by 
any one of them, was the significant new element. 
A compelling e.\ami)le of this approach by part- 
nership was the whole dranmtic episode of the 
collapse of Enc and the way the West Euro- 
pean nations moved in concert to fill the vacuum 
created by that collapse. This, as Secretary of 
State Dulles said and said again, was a European 
story. lie took with him to those fateful meet- 
ings last fall at I»ndon and Paris no overall plan 
to shore up the damage done. But we were, he 
said, more than willing to consider favorably any 
workable plan that was proposed by the nations 
most gravely concerned. 

The result is history now. With Great Britain 
and Germany and France all making notable con- 

' Address made before the Chaml)er of Commerce of 
Greater Philadelphia, Philadelphia, Pa., on .Tan. 13 (press 
release 23). 

cessions, in this spirit of partnership, a new plan 
for a Western European Union was developed 
which in many concrete ways represented an im- 
provement on the Enc plan. The free world 
breathed again. 

The Manila treaty last September was another 
example of this spirit of fellowship.- There, you 
will remember, eight nations, Asian and non- 
Asian, signed a pact against aggression and sub- 
version which put heart and hope into Southeast 
Asia and served notice on the Communist bloc 
that the ranks of the free nations — old and new — 
were closing. 

In thinking over what I wanted to say to you to- 
night, and in light of this growing emphasis on 
a partnei-ship of nations, I decided to brush up 
on a legal definition of what a partnership actu- 
ally was, in the business sense of the term. 
Mechem's Elements of the Law of Partnership was 
my guide, and I relearned several interesting iacX? 
from my business days which I think are appli- 
cable here. 

Complete good faith, fair dealing, and honesty 
on the part of each partner is, as I am sure you all 
know, the basic requirement. 

Each has full and equal responsibility for the 
partnerehip and each has a right to a share in 
the benefits. Among the subheads I learned 
again that "Duty to consult," "Duty to devote 
himself to the advancement of the firm's interest," 
and "Duty to conform to the partnership agree- 
ment" figured jiromincntly. 

Now running through all this was that old legal 
coverall, "unless otherwise specdfied," which is 

' For text of the treaty and of the Pacific Charter, see 
Bulletin of Sept. 20, 19.")4. p. 303. 


Department of State BuHelin 

woven out of a lot of "ifs," "buts," and "where- 
ases." But nonetheless there is good solid tinith 
here. "What holds true for a business partnership 
between men also holds true in considerable degree 
in a political-military-diplomatic partnership 
among nations. 


Cooperation Based on Necessity 

I M-ould be something less than honest with 
you if I did not make it very clear that this in- 
creasing cooperation in the free world is based 
on necessity. Let me go on record, for this is 
the premise upon which my whole report to you 
tonight is based : 

The tactics of the Cominwnist world may vary 
hut the threat re77iains the same. 

The present tactic has been an all-out peace 

•offensive, with a central theme of coexistence. 
Because the world, both the free world and the 
jlave world, longs for peace, tliis siren song of 
joexistence is making some headway — among neu- 
tral nations, among some of our allies, and perhaps 

I iven with some Americans. But let me remind 
?ou that the word means many things to many 

\ nen. To us it means tolerance and the right to 
ive as you please. To the masters of the Com- 
nunist world it means in the end one world all 

I ight, but what a world : a police state, a silent 
rorld of subjugation where no free voice is ever 

Xow, in the decade since World War II the slave 
rorld of the Soviet has greatly increased in power. 
?o it has been added, by imperialists of the same 
rutal stripe, the vast manpower and potential of 
'oiiimunist China. Historical hindsight is easy, 
"11 grant you, but at the risk of this kind of rear- 
'indow wisdom, I still say that there never was 
ny real doubt but that this would be so. Even 
ack in the early 1940's, when those bemused books 
ere coming out of China assuring us that the 
hinese brand of communism was at heart an 
?rarian reform movement, the handwriting on 
'le wall, written in red, soon to be written in blood, 
as very clear. Mao Tse-tung, the present head 
: the regime, was writing of himself : 

I am a Marxist dedicated to communizing China and the 
St of the world under the leadership of Moscow. 

Many years ago, Lenin is reported to have 
ritten : 

inoory 24, ?955 

First we'll take Eastern Europe, then the masses of 
Asia, then we will surround America, the last citadel of 
capitalism. We shall not have to attack. She will fall 
into our lap like an overripe fruit. 

And now this same dedication to the Communist 
ideal has just been reaffirmed in a recent speech by 
Liu Shao-chi, the Chinese Communist Party's 
principal spokesman : 

The Soviet road is the road all humanity will eventually 
take, in accordance with the laws of development of 
history. To bypass this road is impossible. We have 
always believed that Marxism-Leninism is universal 

Now let us see what the disciples of Lenin have 
done with the blueprint he bequeathed them. In 
Europe the rollcall of once-free nations now in 
slavery is a long and melancholy one: Latvia, 
Estonia, Lithuania, Czechoslovakia, Poland, Bul- 
garia, Rumania, Hungary, East Germany, Al- 
bania — in short. Eastern Europe. In Asia the list 
is shorter but the area — from the waters of Alaska 
to the South China Sea — is a vast one. Today the 
Coimnunists hold the mainland of China, with its 
600 million units of manpower, and North Korea, 
and they are threatening to take Southeast Asia by 
way of Indochina. The tactics vary — open ag- 
gression, mass murder, ruthless regimentation, in- 
filtration, subversion. The goal remains the same. 

Two-Faced Empire 

This Janus-headed empire contains over one- 
third of the human race. One face, at present the 
bland, soft-speaking one, looks toward Western 
Europe. The scowling one, in the image of Mao 
and the shadow of Malenkov, looks out upon all 
Asia from an interior position of great force and 

Tlie Communist conquest of China has given the 
Communist tyranny a firm Asian base. From tliis 
base major resources are available or might be 
brought to bear in or on every country in the Far 
East. We have recently seen such Communist 
pressures applied with tragic consequences in In- 
dochina. By common boundaries — the flow of 
trade — cultural affinities — the presence of Chinese 
populations — every coimtry in Asia is touched in 
some way by Communist China. 

The Chinese Communists and, for that matter, 
the other Asian Communists such as the Viet 
Minh may have points of conspicuous physical 
difference from the Russians, but as Communists 


thpy lire all identical, and it is as Communists that 
they think of themselves. To true Communists, 
the internatiomil Communists, it is in terms of 
Communist doctrine alone tliat tlie world and all 
that pocs on in it are to be regarded. 

If we understand what the Communists are, it 
is apparent that there are no grounds on which to 
appeal to them unless from a position of strength 
we can make them pause and heed us. Every basic 
Communist interest is predicated upon our pro- 
gressive defeat and final destruction. The only 
way we can "get at" them is through manifesting 
the power to defend our rights and interests. 
"When they encounter sufficient opposition, they 
call off the attack, as they did in Korea. They may 
even retreat, as they did in Iran in 1946. The 
Communist movement, though fanatical in dedi- 
cation, lacks that suicidal element of fanaticism 
that colored the prewar movements of militant 
German and Japanese nationalism. The Com- 
mimists are intensely practical. They have epi- 
thets just as scurrilous for comrades who lose 
out by going too fast as for those who lose out from 
lack of zeal. In fact, the sin of the Communist 
arch traitor, Trotslcy, was the sin of wanting to 
push the Revolution too fast. The point of this 
is inescapable. 

It is the Asiatic face of this great conspiracy 
that I propose to discuss with you tonight in some 
detail, for it is the area in which my own respon- 
sibilities within the Department of State lie. 

What is our policy? How do we propose to 
meet the ever-present threat of Communist ag- 
gression there, knowing it for what it is? A^Hiat 
progress is being made in the spirit of partnership 
which I defined in my opening remarks? 

Ivct me make one more generalization before I 
go into particulars. Corollary to the basic prem- 
ise of the constancy of the Communist threat is 
another and far more awesome truism. The slave 
world as well as the free possesses the nuclear 
weapons by which to destroy the whole world as 
we know it. "There is no longer any alternative 
to peace," the President said in October, and that 
is about as succinctly as it can be said. 

Twofold Policy 

Bearing (his ultimate threat in mind, as indeed 
we must, the overall policy of the United States 
with regard to the Far East may be described as 

One dominating aspect is the reduction of the 
power and menacing influence of the U. S. S. R. 
and Communist China and the prevention of fur- 
ther expansion of Communist power. 

The other is the encouragement of stability and 
strength in the area, through the cooperative asso- 
ciation of free and independent nations. 

The basic principle of a good business partner- 
ship, as we have seen, is "good and great confi- 
dence and trust." The establishment of such a 
climate of confidence and trust has been equally 
basic to our policy in the Far East, both in the pre- ^ ^ 
vention of further Communist expansion and in 
strengthening the bonds of the free nations in 
the threatened area. 

The complicating factor here has been the old 
ghost of colonialism. For the great driving force 
throughout Asia is the determination of the free 
peoples there — many of which have recently be- 
come independent — to maintain their freedom. 
They fear Russia and China, but paradoxically 
they still in some instances mistrust us too. 

Of course, the United States record on colonial- 
ism is the best answer to these baseless fears. Our 
good faith in giving the Philippines full inde- 
pendence as soon as they were ready for it is a 
case in point in the area itself. 

But the truth is not universally known, and 
Communist propaganda is everywhere distorting, 
perverting, poisoning. B 

I have mentioned the Manila treaty as an exam- , , 
pie of good teamwork and increased security. But 
something else happened at Manila last year that 
was equal in importance. The eight nations who 
met there signed the Pacific Charter, which pro- 
claimed in unmistakable terms the rights of self- 
government and independence for all nations 
ready to assume the attendant responsibilities. 

This has helped to disperse the lingering doubt? 
but there is a long way still to go. "Words an 
not enough. First of all the word must be spread 
in an area where communication is often exceed- 
ingly difficult and uncertain. The same applies t<: 
the Manila treaty itself. It is a beginning of i 
defensive alliance designed to meet the defensi 
needs of Southeast Asia. On February 23 tht 
Manila treaty nations are meeting at Bangkok U 
discuss how to give practical effect to the provi 
sions of the treaty. The fact that this meeting i 
in the capital city of Thailand, an ancient, inde ^ 
pendent Asian country, is both suitable and sym 


Department of Sfafe Bulletii 

bolic. The free and equal partnership is growing. 
The duty to consult, which as we have seen is 
part of such a partnersliip, is being fulfilled. 

So far I have dealt almost entirely in generali- 
zations as vast as the great Asian land mass with 
which they are concerned. I would like to con- 
sider more specifically the situation in the Far 
East. For the bowl of rice of the evening I would 
like to give you a few hard facts about the prog- 
ress there. 

A Look at Japan 

Moving from North to South, let's first have a 
look at Japan. Our principal effort comes under 
the "full and equal responsibility" clause in the 
definition of a partnership. Increasing assump- 
tion of Japan's responsibility for her own defense 
is one of the goals. We have a security treaty 
, with Japan ^ which provides for the stationing of 
U. S. forces in Japan and assumes that Japan will 
build up her defense potential over a period of 

The most obvious fact about that island nation 
jf 88 million souls— increasing more than 1 mil- 
lion per year — is that it must trade to live. Japan 
must import over 22 percent of her food require- 
ments and practically all of her raw materials. 
[f Japan cannot make a living doing business 
with the free nations, she will do business with the 
dommunists rather than starve. Doing business 
ivith people strengthens other ties with them. 
Japan can remain on the side of the free world 
mly if there are adequate trade possibilities for 
ler within the free world. 

This brings me to the second phase of our part- 
lership with Japan. Often what is good for one 
partner is good for both. There is, I know, some 
cear of the competition of Japan, but how much 
Detter the competition of free nations than a cost- 
ier struggle with an augmented Communist des- 
potism. I scarcely need to remind you that 
Fapan is one of our best customers, especially for 
luch agricultural products as cotton and wheat 
,ind rice, barley and soy beans, as well as coal and 
)etroleum and many manufactured goods — auto- 
aobiles, industrial machinery and chemicals. In 
act, almost one-third of Japan's imports come 
Tom the United States, while we buy only about 
me-sixth of her exports. In 1953 Japan's deficit 

in trade with the U. S. amounted to approximately 
$523 million, about one-half of her total trade def- 
icit. So it is to our selfish interest to let Japan 
earn dollars in the United States, as well as to 
assist her to increase market opportunities in other 
nations of the free world. 

The United States will begin negotiations in 
February at Geneva for the purpose of bringing 
Japan into the General Agreement on Tariffs and 
Trade.* We have taken the initiative in this mat- 
ter because we feel that Japan's full accession to 
the General Agreement would be the biggest single 
step which could be taken to increase her trade 
with the free world. In addition to negotiations 
with Japan on tariff concessions, the United 
States will consider granting some concessions to 
third countries which negotiate with Japan, if 
such concessions will assist in the expansion of 
Japanese exports to third countries. 

Mutual Defense Treaties 

Moving southward, the big step with the Repub- 
lic of China has, of course, been the mutual de- 
fense treaty now awaiting congressional approval. 
A measure of the success of this treaty is the fact 
that the Peiping radio and press is still beating 
the drums against it, calling it "grave provoca- 
tion" and a sign of imperialist American interfer- 
ence in domestic affairs. By this we know that we 
have touched the Communists on a sensitive spot. 
The treaty now awaiting Senate ratification closes 
the gap in our island chain of defenses in the Pa- 
cific. Our mutual defense pacts now include: 
Japan, Korea, Formosa, the Philippines, Aus- 
tralia, and New Zealand — defensive alliances to 
be further bolstered and supplemented by the 
Manila Pact upon ratification. It is our firm con- 
viction that the treaty with the Republic of China 
will prove to be a stabilizing factor in the Pacific, 
despite the f ulminations emanating from Peiping. 
I would also like to report with a sense of satisfac- 
tion that the military and economic potential of 
Formosa is growing and that the spirit of coopera- 
tion of the Nationalist Government there is mani- 
fest in all our dealings with them. 

The principal news about the Philippines has 
been the conclusion of negotiations between dele- 
gations of the two countries on proposed revisions 
of the 1946 trade agreement. In a spirit of friend- 

' Ibid., Sept. 17, 1951, p. 464. 
January 24, 7955 

'JMd., Nov. 22, 1954, p. 767. 


ship and goodwill, the two delepitions recently 
reached a<,'recn»ent on reconiinendations to be pre- 
sented to their respective jrovernments for con- 
sideration." The accord which was sijrned on De- 
cember If), 19r)4, represents an etTort to pnt the 
trade rehitionships of tlie two countries on a more 
norma! and stable basis and assist the Philippines 
to achieve a sound, vigorous economy, in keeping 
with their political independence. Included in the 
recommendations, which will become effective only 
after the Conpressos of the two countries have ap- 
proved them, are a number of concessions on both 
sides. For the Philippines, the most important 
parts of the accord provide that the President of 
the United States no longer has any control over 
the rate of exchange of the peso; (2) liberalizes 
certain U. S. quotas on Philippine articles; (3) 
mutualizes the right to engage in business and de- 
velopment activities in the territory of the other; 
and (4) provides for more favorable tariff and 
trade treatment for Philippine articles than under 
the 1946 Trade Agreement. Among the benefits 
which the accord would provide the United States 
is the elimination of the present Philippine 17 per- 
cent tax on foreign exchange transactions. These 
agreements, I submit, represent the concession 
made mutually by good partners in the common 
interest of the two nations. 

Now we come to an area of more controversy. 
The Secretary of State in his closing statement of 
the year 1954 " conceded that the armistice in Indo- 
cliina was a "setback which reflected the military 
reverses of the French Union." "But," he went on 
to say, "out of this setback there has come the 
Manila Pact, which, if adequately implemented, 
can limit the scope and consequences of the loss." 

Uy unanimous vote of the signatories of the 
Manila treaty, provision was made for new mem- 
bers. It is to be hoped that it will grow and that 
uncommitted nations will see fit to join. The 
Bangkok meeting in itself will be a milestone in 
making the treaty fact, for here the mechanics of 
the partnership will be worked out ; the treaty will 
become a thing of flesh and blood; the common 
need will unite. 

The common need, of coui-se, far transcends the 
military. In those areas where the subsistence 
level is low and starvation is an ever-present men- 
ace, the compulsion is for better housing, better 

* Ibid., Dec. ■2T, 19.".4, i>. '.KSl. 

* rbid.. Jnn. 10, 19^..^, ].. 4.'?. 

clothing, better education, machinery, and tech- 

Here I must inject a note of caution. The con- 
cept that the economic difficulties of free nations 
in Asia can be substantially alleviated by expand- 
ing trade with Communist China is in my opinion 
erroneous. The economy of mainland China is 
rigidly controlled by the Chinese Communist re- 
gime, and the foreign trade of Communist China 
is systematically regulated by the regime in terms 
of its political objectives and its 5-year economic 
development plan. No export or import trade is 
licensed which, in the estimation of the Commu- 
nist masters of mainland China, would not serve 
their aggressive purposes, directly or indirectly. 

The Chinese Conununist interest in trade expan- 
sion is limited principally to items of industrial 
and military importance. The regime is com- 
mitted to a program of industrial expansion de- 
signed to increase its warmaking potential. It 
must import from the free world in order to re- 
alize its goals. In order to pay for its imports, it 
must export. The measure of the ruthlessness 
with which the Chinese Communists pursue their 
program is seen in the fact that exports of food- 
stuff's from mainland China have continued un- 
diminished despite the catastrophic flood of last 
summer, which inundated an estimated 10 per- 
cent of the farm land of mainland China. The 
specter of starvation of additional thousands of 
flood victims did not for one moment deter the 
Communists from the exportation of food in ex- 
change for essential items of war supplies, indus- 
trial machinery, and .strategic materials such as 
rubber. The Communists employ food as a weapon 
of war. It matters not how many of its 600 mil- 
lions starve. Even the Communist Army has had 
to be put on food rations. To carry out its ob- 
jectives, the regime must build up its economic 
structure and war machine. The importation of 
"nonessential" consumer goods has no place in the 
Chinese Communist scheme of things. No bene- 
fit not fraught with the greatest danger could be 
derived by the free world countries from a large 
expansion of their trade with Commimist China 

No, unrestricted trade with Communist China 
is not the answer. The answer lies in closer co- 
operation among the free countries from a plat 
form of mutual security. Such a platform was 
constructed at Manila, and it is small wonder thai 
while it was being built the Chinese Communist; 


Department of State Bullelit 

resorted to every device of propaganda to intim- 
idate and divide the free nations who would op- 
pose them. 

Nonrecognition of Communist China 

This brings me to my final point for tonight. 
I am often asked why the U. S. Government is 
firmly opposed to recognition of the Chinese Com- 
munists and giving them a seat in the United 
Nations. We are confi-onted in Peiping with an 
arrogant, contemptuous regime of hard-core inter- 
national Communists who have played a gangster 
role in their relations with us and other coun- 
tries, the latest example being their sentencing 
as spies United Nations prisoners of war held in 
flagi'ant violation of the Korean Armistice. They 
have thrown our citizens into jail without trial, 
they have tortured and brainwashed our prisoners 
of war, they have blackmailed our businessmen, 
they have confiscated our properties. They re- 
spect no law — divine, international, or domestic — 
unless it suits their purposes to do so. They speak 
not for the great Chinese people and nation but 
for international communism. These defiant im- 
posters in Peiping come no closer to representing 
the true interests and aspirations of their coim- 
try than do William Z. Foster and his cohorts 
in this country, or Palmiro Togliatti in Italy, 
Dr Maurice Thorez in France. They are all part 
md parcel of the apparatus of the international 
Communist conspiracy. Their objectives are the 
intithesis of the principles which constitute the 
foundation of the United Nations Charter. They 
are dedicated to the destruction of everything the 
United Nations stands for. 

The regime stands convicted by the United 
'S'ations of the crime of aggression. It has not 
ixpiated that crime nor its crimes against count- 
ess innocent victims of Communist malevolence. 
[ts admission to the United Nations would under- 
nine the real Chinese Government, now based on 
Formosa, which is the one remaining hope of 
nillions of Chinese on the mainland and scat- 
tered about the world who despise communism 
md refuse to accept as permanent the Communist 
mslavement of their country. 

Our Government is opposed to any action 
vhich would strengthen the international prestige 
i>f Chinese communism or its capability for ad- 
'ancing its design for further conquests in col- 
usion with Soviet conununism. We should do 

nothing which would betray the hopes of the 
Chinese with the will to resist Communist domi- 
nation. Our recognition of Communist China and 
acquiescence in giving tliis contemptuous aggres- 
sor against the peace of the world a seat in an 
organization dedicated to maintaining the peace 
of the world would in our considered view have 
calamitous effects upon the United Nations itself 
and on the cause of freedom everywhere. 

There is a proverb of old China that I might 
mention in closing. It is in the form of a ques- 
tion and answer. "What is the cure for muddy 
water ? " the question goes. "Time," is the answer. 

Time is on our side, as it always is on the 
side of the true and the free. In the long rollcall 
of history, nazism and fascism will be episodes 
only, dark incidents if you will. So, too, will 
communism be, although the most evil and per- 
vasive of the three. Man was not made for, nor 
will he permanently endure, the cruel enslave- 
ment imposed by the ruthless bloody regimes of 
international communism. But his liberation will 
be immeasurably hastened provided we keep our 
heads clear and our courage strong, provided we 
make our working partnersliip with the other free 
nations a growing reality. 

Observation Planes Made Available 
to OAS Investigating Committee 


Press release 22 dated January 12 

In response to a resolution unanimously adopted 
by the Council of the Organization of American 
States this afternoon, the Department of State an- 
nounced tonight that the U.S. Government will 
make aircraft immediately available to carry out 
pacific observation flights in the area affected by 
the current disturbance in Central America. 

The Council of the Organization of American 
States, which is acting provisionally as the Organ 
of Consultation with respect to the Central Ameri- 
can problem under the Inter- American Treaty of 
Eeciprocal Assistance (Kio treaty) , called upon all 
members of the Oas who are in a position to do 
so to place aircraft at the disposition of the In- 
vestigating Committee of the Oas for this purpose. 

United States aircraft so provided will be under 

'anuary 24, 7955 


the opiTiUional control of the U.S. Commander 
in Chief, Caribbean. 

Oflicials of tliis Government are now making 
tlie necessary arrangements with the Oas. 


OASdoc. C-d-341 (KnglUh) Kcv. 2 

The Council of the Organization of American 
States, Acting PROVisiONAii.T as Organ of Con- 

Taking into account the petition and the infor- 
mation that the Government of Costa Rica has 
just presented, requesting military assistance, and 

Considering that yesterday a Committee was 
appointed to conduct an on-the-spot investigation 
of the facts pertaining to the situation described 
by the Government of Costa Rica, 

Resolves : 
1. To request the Chairman of the Council to 

communicate by cable with the Investigating Com- 
mittee, requesting it to submit, on an urgent basis, 
as soon as it arrives in Costa Rica, a preliminary 
report on the situation existing in the territory of 
that Republic, in order to enable the Council to 
reach the decision that should be adopted in ac- 
cordance with the Inter-American Treaty of Re- 
ciprocal Assistance. 

2. To request the American governments that 
they take the necessary measures to prevent the use 
of their territories for any military action against 
the government of another State. 

3. To request the governments that are in a po- 
sition to do so that they place at the disposal of 
the Investigating Committee aircraft to make, in 
the name of the Committee and under its super- 
vision, pacific observation flights over the regions 
atfected by the present situation, with prior noti- 
fication by the Chairman of the Council to the 
governments whose territories are traversed. 

Italy in 1955 

by Clare Boothe Luce 
Ambassador to Italy * 

You do me great honor today in inviting me to 
this table. And I can only repaj' you by giving 
you, in the customary time limit, the very best 
account I can of what is going on in Italy. 

What does go on in Italy? Well, what goes on 
in xVmerica? Certainly a great deal of what goes 
on over there, as over here, never appears on the 
agenda of statecraft and is rarely mentioned in 
the higher journalism. From day to day, from 
season to season, much of what most deeply in- 
terests the Italians in Italy and the Americans in 
America is not the stuff of which serious speeches 
are made — nor columns of expertise on foreign 
affairs. In our home newspapers we soak up a 

' Address mnde before the Women's National Press 
Cliilt. WnshlriKton, D. C, on Jan. 13 (press release 20 
dated Jan. 12). 

prodigious amount of newsprint devoted to mur- 
der trials and crimes of passion, local scandals, 
romances, and gossip. So do the Italians. Chiac- 
chiere, the Italians call it. Such absorbing mat- 
ters rarely cross international boundaries, but 
locallj', as we know, they are a great staple of 
daily news. 

For example, Italians are intei'ested in their 
feste. Just as we have one TV show after an- 
other, they have one festa after another. They are 
interested in their soccer teams, their films, and 
their film stars. They are also talking about fly- 
ing saucers, lotteries, the horse races. They arc 
currently interested in the gu-adrilatero di scorn- 
mento, a subject of great discussion in Rome 
"Wliat is it? A quadrilateral treaty? A new for 
mula of governrflent ? No, it's a new traffic system 


Depattmeni of State Bulletin 

iiie internal L^ity is so congested witn trucks and 
automobiles and scooters that the traffic problem 
seems to many a man on the street a more imme- 
diately dangerous one to his own life and limbs 
than controlling atomic weapons. Romans are 
talking about it, doing something about it. They 
talk more about lowering living costs than raising 
12 German divisions; finding husbands for their 
daughters, jobs for their sons, and houses for their 
families than about finding jjanaceas for world 
peace. In fact, most Italians are primarily inter- 
ested in their own and their neighbor's daily 
doings, their personal and private struggles, hopes, 
victories, and defeats, even as you and I. But all 
of this is not to say that the average Italian is not 
also fully aware of the great domestic and inter- 
national pi'oblems that his statesmen and his Gov- 
ernment must meet, grapple with, and solve if he 
is fruitfully to pursue his own private life and 
■ thoughts. 

I want to touch briefly on three special prob- 
lems which Italy confronts today : first, the prob- 
lem of the state ; second, the problem of economics ; 
:hird, the problem of foreign relations. All three 
3f these problems are closely intertwined. 

The Republic of Italy 

First, then, as to the state. It was not mitil 
1870, after we had already fought our Civil War, 
that the Kingdom of Italy was formed with its 
capital in Rome. Under Cavour and his succes- 
sors and until World War I, great progress was 
made under the monarchy. After World War I 
ihere came upon Italy the era of fascism, which 
was strong in some ways, and in some ways even 
popular and successful in Italy — but essentially 
aot constitutional, not truly lawful, and in any 
iSLse not destined to endure. World War II 
washed it out, and in 1946 the Italian people voted 
for a republic. 

But the circumstances under which the Repub- 
ic was founded were not ideal for the growth and 
naintenance of a vigorous young democracy. 
iVithin the context of the political realities of that 
'period the Communists were permitted to par- 
"icipate in the new Italian Government along with 
)ther anti-Fascist political parties. Thus the 
iarly authority and prestige which this participa- 
;ion in government gave to Italian Communist 
eaders have undoubtedly contributed in a large 
neasure to the political position of the Communist 
Party in Italy today. 

lanuary 24, 7955 

328423—55 3 

Add that the physical conditions for the estab- 
lishment of a republic which all could love and 
revere as we love ours were tragically lacking. 
Never a rich country, Italy sufi'ered an appalling 
destruction during the war as inch by inch the 
Germans retreated and nearly everything de- 
structible was destroyed. The miracle of postwar 
Italy was that it nevertheless did not sink into 
inertia and choose chaos, revolution, or des]Dair. 

]\Iost Italians feel that the United States acted 
generously in helping Italy recover from the cata- 
strophic physical destruction of the war. The 
Marshall plan and Eca aid and voluntary contri- 
butions of enormous size have played their 
splendid part in the reconstruction of Italy. 
Nevertheless — partly because of Allied war poli- 
cies, partly because of disastrous postwar eco- 
nomic conditions, and partly for other reasons I 
shall refer to later — communism remains the 
major political problem in Italy. 

It is not my opinion but the constantly expressed 
opinion of the majority of the Italian people and 
their leaders that they must solve this problem if 
the moral authority and constitutional validity of 
the Italian Republic are to be firmly and endur- 
ingly established. 

As you all know from reading the news from 
Italy, the Scelba government is, at this moment, 
going steadily forward on tliis main issue of es- 
tablishing the lasting validity of the democratic 
Republic of Italy. Specifically, the Government 
has set out to increase the efficiency of its bureauc- 
racy and to emphasize the seriousness of moral- 
ity in public administration. Most notably, the 
Prime Minister has set in motion measures to 
curb the extra-legal activities of the Communists. 
He has forced them to evacuate public and former 
Fascist Party premises which they seized at the 
end of the war. He is forcing the Communist 
press to conform to the laws of libel and slander. 
And Communists are being transferred out of 
sensitive positions in the bureaucracy. 

Today the free press of Italy is full of state- 
ments and exhortations by Italians in all walks of 
life — political leaders, businessmen, intellectuals, 
journalists — urging the Government to pursue a 
dynamic and pui^DOseful course, within the frame- 
work of the Italian Constitution, to defeat those 
who would drag Italy slowly behind the Iron 
Curtain. To stand up courageously for your be- 
liefs in the face of fierce opposition is no easier 
in Italy than anywhere else. The free world owes 


a tremendous debt of gratitude to all those who 
fight for the freedom and for the honor of the 
Italian Kepublic. It is a young democracy, and 
a harassed democracy, but it certainly does not 
lack for patriots eager and willing to defend it. 
Their fight is for their beloved country — but it 
is also for us, for free men everywhere. 

The Economic Situation 

Sccoiully, as to Italy's economic situation. It is 
often said in Italy tiiat the average Italian i^, bet- 
ter off materially tiian his ancestors ever were, 
even at the heiglit of the prosperous Pax Romana. 
Economic statistics make it difficult to deny that 
statement. Yet, it is also a fact tliat there is wide- 
spread economic discontent. There is no time to- 
day to elucidate that paradox. Certainly that 
discontent is by no means purely economic — there 
exists a more generalized political and social ma- 
laise. But in economic terms, it is also true that 
among the masses there is much miseria, sheer 
misery, deep rooted, heartbreaking, and by Ameri- 
can standards even inhuman. It is also true that 
many in the middle class, small shopkeepers and 
professional men, liave an agonizing time making 
ends meet and often feel that they are the really 
forgotten men and women of Italy. The indus- 
trial worker and the agricultural victims of mi- 
seria are constantly in the public eye, and in the 
minds of politicians — but vast numbers of the mid- 
dle class are also insisting that more attention 
should be given to them. 

In considering the paradox of Italy's overall 
prosperity and widespread discontent, there is a 
factor we must not ignore. A standard of living 
and a way of life which would have been quite tol- 
erable in Italy 50 or even 25 years ago is quite 
unacceptable now, just as it would be here. Fifty 
years ago most Italians never expected to travel 
out of sight of their village church spire more than 
a few times in a lifetime. They didn't dream of 
dashing off on weekends on a scooter to a sandy 
beach, let alone of having a Topolino automobile. 
Or, consider movies. Since the war tliousands of 
new movie houses have been built — I would guess 
that the cinema occupies today a relatively bigger 
place in the life of Italy than in the life of 
America. Automobile.s, movies — these are only 
two symbols of the more expensive life, the ways 
of communication with the modern world, which 
all Italians know today. And the plain fact is that 


the Italians intend, indeed demand, to live a men I 
ern life in the modern world. They are no longer 
content to live in the 19th century, no less in the 
Middle Ages. 

This ferment of desire — desire for progress— is 
bringing particularly important changes to the 
south, which is now undergoing both a social and 
an economic reawakening. There the political 
battle for men's loyalties is under way full swing. 
The Government is pressing forward with large- 
scale development and reform programs wliich 
the Communists are at the same time seeking to 
undermine and to steal the credit for. The south 
is today the cockpit of Italy, and it is there that the 
future of the Italian Republic may well be decided. 

Certainly in 1955 the Republic is off to a good 
start. In general, the year 1954 witnessed gains, 
even rather striking gains, in the Italian stand- 
ard of living. Here are some of the facts : 

Industrial production has reached a new post- 
war high — at midyear 1954 the index stood at 
183, as against 100 for 1938, the so-called "hist 
normal pi-ewar year." In 1953 the increase in 
the gi'oss national product was approximately 7 
percent — perhaps the highest rate of inci'ease in 
all of Europe. 

Moreover, there has been an increase in in- 
dustrial wages — chiefly due to an agreement that 
the free labor unions, over the opposition of the 
Communist-dominated union, were able to negoti- 
ate. Inflationary tendencies have been controlled, 
though there are legitimate complaints about the 
cost of living. But industrial labor is certainly 
better off' in terms of real wages. 

The foreign trade balance shows continued im- 
provement ; exports were up some 10 percent in the 
first 8 months of 1954 over the same period of 1953, 
while imports were virtually unchanged. Fori 
that and other reasons, Italy's international pay-1 
ments position for the first half of 1954 improved 
considerably over 1953, while foreign exchange 
reserves continued to increase steadily, totaling 
$829 million at midyear. In consecjuence, Italy 
was able to remove dollar import restrictions of 
various commodities, among them coal and petro- 

That hardheaded bankers considered Italy a 
good credit risk was attested when tlie Interna-j 
tional Bank agreed to consider substantial addi^ 
tional loans to help the underdeveloped areas of 
Italy. Development in general, and, as I have 
said, especially in the south, proceeds apace and 

Department of State Bulletin 

is one of the most heartening things going on in 
that ancient but vital land. 

A Social and Economic Program 

There are other encouraging signs for the 
future : 

The Scelba government is worlcing on plans for 
an ambitious social and economic program. If 
this program is carried into effect — and the heart 
of the matter is if the means to carry it into effect 
can be found — it will correct many of the festering 
ills that have so plagued and weakened the young 
Italian Kepublic. The Government today seeks 
legislation to clamp down harder on tax evaders, 
to send the worst offenders to prison; to reor- 
ganize the civil service; to increase construction 
of low-cost houses for workers; to reform the 
social security system; to build new and better 
roads; to encourage foreign private investment; 
to extend the already extensive land reform area; 
and to revise sharecropper contracts. 

As for unemployment — which, by the way, was 
slightly down at mid-1954 — there are under con- 
tinuing study plans to create more jobs. A com- 
prehensive, very long-range economic plan for 
Italy's future is being laid before Oeec [Organi- 
zation for European Economic Cooperation] in 
Paris now. All this, together with a birthrate 
lower than most countries of Western Europe and 
still declining, creates a brighter picture for the 
long-term settlement of this problem. Several 
European countries, notably Germany, have 
evinced a desire to help Italy work out her trouble- 
some unemployment problems — this on the alto- 
gether sound theory that if one member of the 
European community has serious economic prob- 
lems, all the others must suffer. I think you will 
agree with me that this latter development — of 
Europeans helping Europeans — is most hopeful. 

The Italian Government is well aware that 
there is still much to do in order that all Italians 
may have a proper standard of living. But even 
though the Italian leaders showed the wisdom of 
Solomon and the courage of a David, one hard 
fact remains: Italy does not today have the 
capacity to create a prosperous self-sufficient econ- 
omy. Perhaps no country can these days, but 
Italy less than most. This hard and central fact 
of its national life is obvious to every Italian. 
I wish it were as obvious to every American. 
Italy needs an expanding economy in a world of 

freer and expanding trade; it needs a free flow 
both of men and of money, of work and of invest- 
ment and distribution. But isn't that exactly 
what we all desire? The greatest way in which 
we can help Italy to achieve an adequate modern 
prosperity, and consequently the conditions for a 
strong republic, is for us — for the United States — 
to move ahead toward the ideal which we all share. 
And so I hope with all my heart that our Govern- 
ment, both in its executive and in its legislative 
branches, will vigorously pursue sound and ade- 
quate means toward this goal. The immediate 
effect of United States leadership in this field 
would be to give hope to Italy and to many other 
countries — hope not only for greater prosperity, 
but hope also that men can work out their eco- 
nomic problems in terms of freedom. 

Foreign Affairs 

And this leads, lastly, to foreign affairs. The 
year 1954 has been a very good year for Italy in 
its international relations. A few months ago 
when Edc collapsed in France, the gloom was thick 
in all Nato countries, especially Italy, where the 
Government had based its foreign policy firmly 
on European integration. Naturally there was 
some joy among those in Italy who desired to see 
Italy become a satellite of the Kremlin. They be- 
lieved that the collapse of Western policy marked 
the collapse of Italy's pro- Western government. 
They began to trumpet sounds as though they were 
going to take over. Then came the plans for the 
London Accords in October. A new Italian for- 
eign minister, Signor Martino, a distinguished lib- 
eral, took office on a Monday. On Tuesday he went 
to London. A few days later he returned, having 
participated energetically and constructively in 
the formulation of the agreement which led to 
AVestern European Union — to the great delight of 
all patriotic Italians. 

At about the same time the troublesome Trieste 
question was finally resolved. The return of Tri- 
este to Italy was a cause of deep satisfaction to the 
Italian people. For Trieste is not only a symbol 
of Italian unity, it is also a fine and handsome 
city — where, I may add, American soldiers left 
behind a most friendly and agreeable memory. 
Moreover, Trieste has the potentialities of becom- 
ing a prospering industrial area — again, if the 
means can be found to develop its capacities. 

On the part of the Italian Government, and of 

January 24, 1955 


Italian leadership generally, the decision to make 
the Trieste settlement was taken largely in terms 
of advancing the whole cause of international 
peace and grood will. Once again, the free world 
owes a debt of gratitude to the statesmanship that 
the Italians displayed in resolving this difficult 

Italy's statesmanlike approach to the Trieste 
problem and recent wholehearted support which 
all non-Cominform parties in Italy gave Wetj — 
both of these recent events illustrate the dominant 
theme of Italian foreign policy, namely, the de- 
sire of overwhelming numbers of Italians for max- 
imum international cooperation throughout the 
free world and for European union in particular. 
We have already emphasized, in speaking of 
economics, that it is to Italy's obvious advantage 
to have both European union and the maximum 
of international cooperation. In this context, and 
only in this context, can Italy be expected to 
achieve an adequate economic life. By the same 
token, the establishment in Italy of a strong demo- 
cratic state also depends to a considerable extent 
upon the continuing success of democratic insti- 
tutions in other countries, upon the mutual rein- 
forcement of the democratic ideal throughout the 
free world. 

To be sure, a healthy patriotism has its uses in 
Italy as it does in the United States, in Great 
Britain, and in other lands. Indeed, the "inter- 
nationalism'' which we seek today is one which is 
based on peoples' love of their own country and 
respect for their own democratic institutions, and 
creation of their own political patterns in the pur- 
suit of freedom. So also in the economic field, 
each country has a primarj' responsibility for the 
sound development of its own economic-social life. 
But in the age of jet propulsion and atomic fission 
a vigorous local democracy and vigorous local 
economy depend more and more upon the mutual 
reinforcement of democratic institutions and tech- 
niques of prosperity throughout the nations of the 
free world. 

The case of Italy vividly illustrates this 20th 
century fact of life. In Italy as in America the 
problem of the state, the problem of economic de- 
velopment, and the problem of foreign affairs are 
—all three of them— closely knit together. In 
James Reston's graphic phrase: "Every place is 
the same place now." Thus, the major theme of 
Italian foreign policy is, in fact, the major theme 
of the Inghest statesmanship of our time— the ef- 


fort of free nations and free men to live in amity 
and security and in good partnership, rendering 
mutual aid in order that all may enjoy the fruits 
of honest and intelligent labor. 

To sum up, Italy considers that 1954 was a suc- 
cessful year in both domestic and foreign policy 
because in a number of specific internal matters, 
as well as in the grand alliance of the West, the 
prospects for effective cooperation with the forces 
of freedom were enhanced throughout the world. 
As Prime ilinister Scelba has said : "Italy's for- 
eign policy of collaboration with the West is no 
longer a party policy but has become a national 

Today the complexity of the problems which 
face us is only exceeded by their size. Never- 
theless 1954 in Italy shows that they are capable of 
solution if we have the will as well as the wit to 
solve them. 

At the beginning, then, of 1955, may we all go 
forward together — we and our Italian allies — in 
our mutual hopes and aspirations. For their 
realization we depend on the devoted service of 
men and women in all ranks of public office. Here 
let me say how much we owe to tlie hundreds and 
hundreds of devoted servants in our own Foreign 
Service and in the foreign services of other coun- 
tries. But we depend no less, and even more, upon 
the responsible citizens of every country — upon 
the truly patriotic citizens who make a real effort 
to understand the problems of others and to con- 
tribute their share of effort, and even of sacrifice, 
to the common good. 

Jlay I say, in closing, that we who try to serve 
our country and its great cause of peace abroad 
depend— and we know how much we depend— on 
you. I know your high ideal : That the truth be 
told. That it be told with clarity. And that it be 
told, insofar as possible, in a spirit of charity. It 
is just so that many of you who have come by way 
of Rome have told the Italian story in 1954.' 

OEEC Publishes Report on 
U. S. Investment in Europe 

The development of U.S. private investment in 
Europe and the overseas territories of European 
powers has a major bearing not only on interna- 
tional financial relations but also on economic 
expansion and the spreading of modern tech- 

Department of State Bulletin 

niques. As part of an attempt to create condi- 
tions more conducive to such investment, the Or- 
ganization for European Economic Cooperation 
(in which the United States participates although 
it is not a member) last year organized a meeting 
between European experts and American busi- 
nessmen. Oeec has now published a report, Pri- 
vate United States Imvesfmient in Europe and the 
Overseas Territories^ which gives particulars of 
the statutory regulations and administrative pro- 
visions that apply to such investment and recom- 
mends various measures likely to encourage it. 
This 137-page report is available at $1.25 from 
the Oeec Mission, Publications Office, 2002 P 
St. NW., Washington 6, D.C. 

New Year's Greeting to the 
People of Germany 

hy James B. Conant 

U. S. High Commissioner for Germany ' 

I am very happy on this New Year's Day to 
bring to the Germans in East and West the best 
wishes of the American people and of my Govern- 
ment, as well as my own personal wishes for the 
New Year. 

As we enter the year 1955, the Gennan people is 
still tragically divided. To help bring about a 
reunification in freedom remains one of the most 
solemn obligations of my Govermnent. In the 
elections of December 5 the citizens of Free Ber- 
lin also spoke for their countrymen in the Soviet 
Zone and the whole world took note. The same 
SED [Sozialistische Einheitspartei Deutsch- 
lands] which in the unfree elections of October 17 
in the Soviet Zone tried to prove its claim that it 
is the ''party of the people'' was unable to elect 
a single candidate in the free elections in West 
Berlin. It seems to me that, after thus living up 
to its reputation as a stronghold of the free world, 
the city of Berlin can enter the new year with 
a feeling of real pride. 

But one cannot live on pride alone. I am there- 
fore particularly happy that during the last year 
18,000 apartments were built in West Berlin and 
the number of unemployed decreased by almost 
55,000. It is my sincere wish for all Berliners 

' Translation of message broadcast in German over sta- 
tion RIAS at Berlin on Jan. 1 (Hicoo press release 
dated December 31). 

ianuary 24, 1955 

328423—55 4 

that this favorable development will continue and 
that Berlin — even more than before — will par- 
ticipate in the economic recovery of West Ger- 
many. The Government of the United States 
will continue to do its share for the economic as- 
sistance of Free Berlin. 

Permit me to say a few completely personal 
words. I should like to speak to you now not as 
High Commissioner — with the ratification of the 
Paris treaties tliis title will disappear anyway. 
I would like to address myself particularly to the 
yoimger listeners in the Soviet Zone. 

You, my yoimg friends in the Soviet Zone, 
never had the chance to live in a free society, 
where you could freely form your own opinions 
and freely express them. You are living under 
a regime which tries to force an official ideology 
on all people in its power, a regime which perse- 
cutes and suppresses all criticism of this official 
ideology. You are living mider a regime which 
permits neither an election campaign nor real 

Tliis fear of free discussions and of the will of 
the people is the clearest admission of weakness. 
I am convinced that such a regime cannot perma- 
nently endure and that it will not be able to pre- 
vent the reunification of Germany in freedom. 

I wish you all a happy New Year. Especially 
to those whose horizon is darkest — to you I would 
like to say : We shall not forsake you. 

U. S. Replies to Soviet Query on 
Remarks of General Stevenson 

On January 11 the following aide-memoire was 
delivered to the Emhassy of the U.S.S.R. at 
Washington in reply to an aide-memoire presented 
to Under Secretary Hoover on December 16 by 
Soviet Cou/nselor of Embassy Anatoli F. Dobry- 


Press release 12 dated January 11 

The Department of State refei-s to the aide- 
memoire dated December 16, 1954 from the Em- 
bassy of the Union of Soviet Socialist Republics 
regarding statements reported to have been made 
by the Commander of the Forty-ninth Air Divi- 


sion, General John D. Stevenson. The Embassy's 
aide-memoire, in quoting General Stevenson, se- 
lected certain statements out of context. A closer 
examination of General Stevenson's remarks 
would have shown that he had given particular 
attention to the completely defensive nature of 
the mission of the unit under his command within 
the North Atlantic Treaty Organization frame- 

The United States Government feels that Gen- 
eral Stevenson correctly emphasized the defensive 
nature of Nato. If the Nato countries were not 
convinced of the need to take effective collective 
measures to counter the threat posed by the high 
level of armaments possessed by the Soviet Union 
and its satellites and if the Nato countries were 
not disturbed by the unwillingness of the Soviet 
Union to negotiate just solutions of outstanding 
European problems, there would be no necessity 
for maintaining the strong defensive forces which 
they have been compelled to organize. Under 
present circumstances, however, the United States 
and the other nations of the Free AVorld have 
no alternative but to maintain such strong defen- 
sive forces. 


(Unofflclal Translation] 

According to Knglish press, Commander of the 49th 
.\merican Aviation Division based in Ent-'land, General 
Stevenson, stated on December 10 of this year at Bent- 
waters Airport (England) that in the composition of 
his division were l)ombardment planes which are in- 
tended for the delivery of an atomic attack against the 
Soviet Union, and that this task was given to the divi- 
sion 2V4 years ago. 

Inasmuch as this statement of an official representa- 
tive of the armed forces of tlie United States of America 
Is incompatible with normal relations existing between 
the U. S. S. I{. and the U. S. A., tlie Soviet Government 
would wish to receive clarlflcatlons from the Government 
of the U. S. A. with regard to whether the information 
in the press regarding the nature of the statement of 

General Stevenson is correct and, if it is correct, then 
how the Government of the D. S. A. evaluates this state- 

Wheat and Cotton Agreement 
With Yugoslavia 

The Department of State announced on Janu- 
ary 7 (press release 9) that representatives of the 
U.S. Government had signed an agreement with 
the Yugoslav Govermnent at Belgrade on Janu- 
ary 5, providing for the sale and delivery of 425,- 
000 tons of wheat, and cotton to the value of $10 
million. At current market prices, the commodity 
value of the wheat (excluding ocean freight) is 
about $28 million. These commodities will be 
made available to Yugoslavia pursuant to title I 
of the Agricultural Trade Development and 
Assistance Act (Public Law 480, 83d Congress). 
The wheat will help alleviate food shortages in 
Yugoslavia, which has suffered its tliird wheat 
crop failure since 1950. 

A substantial part of the dinar proceeds imder 
this program will be made available to support 
Yugoslavia's economy, so that it can maintain 
an adequate defense posture. The balance of the 
proceeds will be used to meet U.S. expenses in 

The new program brings to 860,000 tons the 
amount of wheat to be provided to Yugoslavia 
nnder various programs for the current fiscal year. 
Shipments of wheat from the United States pre- 
viously authorized under other authorities and 
announced to the press have amounted to 435,000 
tons, of which 275,000 tons have been furnished 
under title II of the Agricultural Trade Develop- 
ment and Assistance Act, 10,000 tons as part of the 
Danube River flood relief program for six coun- 
tries suffering crop damages, and 150,000 tons 
under section 402 of the Mutual Security Act of 


Department of Sfafe Bullelin 

Report of the Validation Board for German Dollar Bonds 
September 1, 195S^August 31, 1954 

Following is the text of a report on the activities 
of the Validation Board for German Dollar Bonds, 
covering the period from the Board's inception 
through August SI, 1954, which was transmitted 
to Secretary Dulles on Decernber 17 hy Douglas 
W. Hartman, U.S. member of the Board. 

I. Introductory Remarks 


The validation of German Foreign Currency 
bonds, the settlement terms for which were agreed 
in the London Debt Agreement, signed on Feb- 
ruary 27, 1953, was undertaken by the Federal 
Republic of Germany in consultation and agree- 
ment with other nations concerned, including the 
United States. Substantial amounts of these se- 
curities had been deposited in vaults of banks 
in Berlin prior to and during the war, and after 
the occupation of Berlin by the Soviet armies these 
securities disappeared. Most of them were bonds 
which had been repurchased by the issuer's for 
amortization purposes or which had been acquired 
for such 2)urpose by the Conversion Office for 
German Foreign Debts, the Golddiskontbank or 
other agencies. 

Cancellation became generally impossible after 
the outbreak of the war in Europe in 1939; one 
reason being that the trustees outside of Germany 
whose participation as a rule was necessary could 
no longer be reached. The greater part of the 
securities so deposited in Berlin which disap- 
' peared during the Soviet occupation were dollar 
bonds offered in the United States. The total 
face amount of these bonds is estimated at about 
$350,000,000. Thereafter, some of these looted 
bonds made their reappearance on international 
markets. The elimination of such "bad" bonds 
is the essential task of the validation procedure 
which, as far as dollar bonds are concerned, has 

been conferred upon a mixed American-German 
Validation Board in New York. 

The successful execution of this procedure is 
imperative not only in the interest of the issuers 
(who will be protected from having to honor bonds 
a second time), but also in that of the holders 
of lawfully acquired German dollar bonds (fur- 
ther servicing of which would be endangered if it 
proved necessary to service "bad" bonds on a major 
scale) , and in the interest of the security of the 
states of the free world. If sales of "bad" bonds 
were made to any great extent, a substantial 
amount of dollars would become available for use 
in subversive activities. 


The Validation Board has been established as 
an American-German agency as provided by the 
Agreement of February 27, 1953, between the 
United States and the Federal Republic of Ger- 
many.^ The activities of the Board are governed 


the Law for the Validation of German Foreign 
Currency Bonds enacted under date of August 
25, 1952= (Bundesgesetzblatt, Part I, Page 
553), in connection with 

the above mentioned American-German Agree- 
ment (published in the Bundesanzeiger No. 50, 
March 13, 1953) and 

the American-German Treaty, dated April 1, 

1953 ^ (wliich was ratified by the United States 
Senate on July 13, 1953 and, after ratification 
by the Legislature of the Federal Republic of 
Germany, published in the Bundesgesetzblatt 
1953, Part II, Page 301) as well as 

' For text of the Agreement, see Bulletin of Mar. 9, 

1953, p. 376. 

^ For an article on the Validation Law, see ihid., Oct. 
20, 1952, p. 608. 

' nid.. May 4, 1953, p. 666. 

January 24, J 955 


by the Fii-st, Second, Seventh and Eighth Im- 
plement in<? Ordinance ( Biindesgesetzbhitt 1953, 
Piirt I, Tiigo 31, Bimdesanzeiger No. 50, March 
13, 1953, Bnndesgesetzbhxtt 1953, Part I, Page 
1522, and Bundesgcsetzblatt 1954, Part I, Page 
263), enacted by tlie German Federal Govern- 
ment under the Validation Law mentioned above 
with tlie consent of the United States Govern- 

The English texts (solely authentic in the 
United States according to Article IV of the 
Treaty dated April 1, 1953) of the legislation de- 
scribe*! in the foregoing paragraph are contained 
(except the two Implementing Ordinances) 
in the Messjige of the President to the Senate of 
the United States of April 10, 1953, Senate Docu- 
ment 83rd Congress, First Session, Executives D, 
E, F and G, Pages 143-144 and 153-201. 


The Validation Board commenced operations in 
the spring of 1953. The Board immediat«ly took 
up the preparation of the procedures for the open- 
ing of registration at the earliest date practicable. 

At this stage the assistjvnc* of the Ami fuer 
Wertpapierbereinigung, Bad Ilomburg v.d.H., 
with the comprehensive background experience 
acquired in the validation of German Reichsmark 
securities, and the assistance of the U.S. Securities 
and E.xchange Commission in Washington, D.C., 
were of extraordinary value. 

Of special importance, f ui-thermore, for setting 
the validation procedure in motion was the ap- 
pointment of The National City Bank of New 
York as the General Dei)ositary and J. P. Morgan 
& Co. Incoi-porated as the Special Depositary for 
the Board pui-suant to Article 2, paragraphs 1 
and 2 of the Second Imi)lementing Ordinance 
under the Validation Law. The appointments 
were made on July 24, 1953, by the Gennan Fed- 
eral Minister of Finance, Ilerr Fritz Schaeffer, 
during a visit lie paid to the United States. With 
the Special Depositai-}- — J. P. Morgan & Co. In- 
(•ori)orated — are deposited the bonds of the Dawes, 
Voung, and Prussian I^oans, wliile all other se- 
curities subject to validation, e. g. those of the 
Conversion Office, the German states (Laender), 
cities and private companies, are deposited with 
the General Depositjiry, The National City Bank 
of New York. 


The Validation Board is a mixed American- 
German Agency. It consists of the ^Vmerican 
Member, Douglas W. Hartman, and the German 
Member, Dr. Walther Reusch. Richard D. 
Kearney is the Deputy United States Member and 
Dr. Walther Skaupy and Dr. Walter Clemens are 
the Deputy German Members. David A. Stretch 
is the Board's Chairman acting in cases wherein 
the .Vmerican and German Members disagree (see 
Section 2, paragraph f of the United States-Ger- 
man Agreement of February 27, 1953). 

The German Member of the Validation Board 
is also the Foreign Representative of the Federal 
Republic of Germany for the Validation of Ger- 
man Foreign Currency Bonds in the United States 
(see Section 2, paragraph c of the Agreement of 
February 27, 1953; Section II, c (8) and Section 
IV, c, d and e of this report) . 

During the period covered by this report the 
Validation Board had a staff of fourteen persons, 
consisting of the Secretary to the Board, two 
legally trained examiners, three banking experts, 
and eight stenographer-typists and clerks. 

Tiie cooperation between the United States and 
German elements of the Validation Board has de- 
veloped in a most harmonious and satisfactory 
way and proves again the practicability of such 
small mixed agencies in working out special in- 
ternational problems. A great amount of work 
has been accomplished smoothly within a com- 
paratively short period by the Germans and 
Americans working together on the Validation 

The Board's offices are located on the 36th floor 
of 30 Broad Street, New York 4, N. Y. 

II. Execution of the Validation Procedure 


From August 26, to August 30, 1953, the 
Board's first advertisement appeared in 25 
English and 6 German language newspapers 
and periodicals in the United States and its terri- 
tories. This advertisement announced the be- 
ginning of registration on September 1, 1953, and 
contained the essential information concerning the 
securities subject to validation and their registra- 
tion (Exhibit I).'' At the same time, hundreds 
of jVjnerican newspapers and periodicals pub- 

'Not printed. 


Department of State Bulletin 

lished news stories or comments on the valida- 
tion procedure. Before the end of August, 1953, 
registration forms and exphxnatory pamphlets 
were distributed to more than 20,000 banks and 
brokerage firms in the United States as well as to 
many banks and other interested agencies in the 
rest of the world. The explanatory pamphlet 
contains on six pages detailed information on 
the validation procedure (Exhibit 2).^ 

The activities of the Board have been very well 
publicized throughout the period of this report, 
not only by New York newspapers and financial 
periodicals, but also tliroughout the United States. 
The German language press time and again com- 
mented upon the Board's work and the necessity 
of validation. Radio reporters also cooperated. 
In spite of the complexity of the subject matter, 
the reporting was substantially accurate. 

During the period covered by this report, the 
Board has issued nineteen press releases which 
were given good coverage. 

Early in April, 1954, a second notice to bond- 
holders was published in forty English and twelve 
German language newspapers and in mid-August 
1954, a third such notice was published. The lat- 
ter appeared in 36 English and 14 German lan- 
guage newspapers and periodicals in all parts of 
the United States and in its territories. 

Particular stress has been laid upon informing 
the German language press throughout the United 
States inasmuch as a very considerable part of 
these bonds was believed to be in the hands of 
Americans of German descent. 


( 1 ) Through its advertisement and the other re- 
ports of the Board, the great majority of the hold- 
ers of German dollar bonds in the United States 
and its territories obviously were reached ; almost 
half of all of the bonds registered to date came to 
the Board during the first two months of the reg- 
istration period, namely in September and Oc- 
tober of 1953. The endeavours of the Board and 
the cooperation of banks, brokers, dealers and the 
press also, in due time, reached the bondholders 
in the rest of the Western hemisphere and in 
Europe from where registrations have been re- 
ceived in increasing amounts, especially since De- 
cember of 1953. 

(2) During the period covered by this report. 
(September 1, 1953 up to and including August 
31, 1954) 33,610 registratiom covering H6,912 

hands in the face value of $12^,796,1^00 have been 

For more detailed information statistical tables 
have been appended hereto which set forth the fol- 
lowing information : 

(aa) The number of registrations and the total amount 
received l>y month and by depositary (Exhibit 3). 

This table demonstrates, among other things, that 
most of the registrations, by number of pieces as well as 
by face amount, were received during the first three 
months of the registration period and that there has been 
a considerable reduction during the last months. 

(bb) Geographic distribution of bondholders, cover- 
ing the first three months and the full year of registra- 
tions, by depositary (Exhibit 4). 

By far the greater part of the registrations come 
from the United States and are widely distributed. There 
has been heavy registration from New York, New Jersey, 
Connecticut, Massachusetts, Pennsylvania, Washington, 
D. C, Florida, Michigan, Minnesota, Missouri, Ohio, Wis- 
consin. Illinois and California. 

During the latter months of the registration period, 
especially since the beginning of the year, the registra- 
tions from countries other than the United States have 
increased considerably, so that registration for the 
United States, which stood around 90% of the total regis- 
tration during the first three months, fell off to about 70% 
of the total when the whole period is considered. 

Among other countries, Switzerland leads with about 
20% of the total face amount of registrations ; then fol- 
low Great Britain (including, for statistical reasons, 
Eire) with 1.7%, and France, including Algeria and Mo- 
rocco, with 1.3%. Besides the areas mentioned, only "all 
other South American countries" (including Uruguay) 
and Canada registered total amounts exceeding one mil- 
lion dollars ; the Netherlands follow with just below one 

(cc) With each registration form have been submitted 
on an average : 

during the first 
three months 

with the Board's 
General Depositary 

with the Board's 
Special Depositary 

during the whole 
period covered by 
this report 

with the Board's 
General Depositary 

4.625 bonds with a face value of 
$3,848.80 ; 

2.5 bonds with a face value of 
$2,373.50 ; 

6.75 bonds with a face value of 
$6,736.00 ; 

4.625 bonds with a face value of 
$3,742.80 ; 

3.45 bonds with a face value of 
$2,620.20 ; 

with the Board's 
Special Depositary 

5.8 bonds with a face value of 

These figures disclose a wide distribution of the bonds 
in relatively small holdings, as forecast by the Foreign 
Bondholders Protective Council, 90 Broad Street, New 
York City. 

January 24, 7955 


(dd) During the period covered by this report, 723 of 
the 33,610 registrations filed cover bonds with a face 
value of $25,000 or more. The total face amount of reg- 
istrations covering $25,000 or more is $40,971,000. 

104 of those registrations cover in each case bonds 
with a face value of $100,000 or more ; total face amount : 
$20,717,000 or about 17% of the aggregate face amount 
of bonds registered with the Board. Only 14 registra- 
tions each rei)resent bonds with a face value of $."500,000 
or more (total face amount $7,287,000 or barely 6% of the 
total face value of all bonds registered). The greatest 
amount covered by one registration form amounted to 

According to the Instructions on the registration form 
the registrant is requested to file separate applications 
for bonds of different issues. Some registrants, there- 
fore, filed several applications or several registrations 
have been submitted on behalf of one bondholder. When 
taking into account such cases the greatest holdings are 
as follows : 

three from one million to 1.6 million dollars; 
three from 500,0(X) to 800,000 dollars ; 
eight from 300,000 to 500,000 dollars. 

The evidence In each of these large registrations 
shows that the bonds covered were already held by own- 
ers prior to and on January 1, 1!)45. According to certi- 
fications by well known American and English banking 
Institutions they were located on such date within the 
United States or in London. 

More detailed information on the registrations cov- 
ering bonds with a face value of $100,000 or more may 
be found in exhibit number five. 

A breakdown of these registrations into several 
classifications, shows In particular that a relatively large 
percentage of these applications have been filed on behalf 
of trusts and that they include substantial amounts regis- 
tered for scientific, educational, church and welfare insti- 
tutions In the United States and to a smaller extent in 
Switzerland and some other countries. 

(3) The registration period was fixed to begin 
on September 1, 1953, and to expire on August 31, 
1954 ; it lias been extended to and including August 
31, 1955, by the Eighth Implementing Ordinance 
(of August 16, 1954) under tlie Validation Law 
(see I b above) . 

When the amount so far registered with the 
Board is added to the aggregate face amount of 
the bonds which, according to the informa- 
tion available, might come under the program for 
collective validation of bonds held in European 
countries (see IV-a- of this report) and of the 
bonds which will probably be validated as so- 
called Inland.sstuecke (bonds held in Germany on 
January 1, 1945), the total face value so accounted 
for appears to be about $200,000,000. This figure 
in turn is not too far from the amount which, ac- 
cording to more recent estimates, is believed to be 
legitimately outstanding. Therefore, it can be 


assumed that future applications for validation 
will not approach the amounts registered during 
the period covered by the report. 


(1) The Validation Board had first to submit 
information on every registration to trustees and 
paying agents as well as to issuers and examining 
agencies in Germany and request comment thereon 
as provided for in Article 22, paragraph 4, and 
Article 24, paragraph 2 of the Validation Law. 
Such information is submitted by the depositaries, 
acting on behalf of the Board, through lists of 
serial numbers or copies of the registrations. One 
of the most important sources of information has 
proved to be the examining agencies which were 
able to assemble from their own records and in 
cooperation with issuers, trustees, and otlier 
agencies a comprehensive amount of information. 
A considerable lapse of time, however, is unavoid- 
able between the registration of a bond and the 
receipt by the Board of the pertinent statements 
from the examining agencies, trustees, etc. This 
lapse of time at the outset of the procedure was 
often three months and more. The cooperation 
of the examining agencies with the Board was 
strengthened considerably following a trip to 
Germany of the Board's American Member, Mr. 
Hartman, in April and May, 1954. 

Information furnished to the Board by the Amt 
fuer Wertpapierbereinigung in Bad Homburg 
v.d.H., Germany, has also been of great value. 

(2) However, the period between registration 
and receipt by the Board of the statements of ex- 
amining agencies etc., was not wasted. The Board 
conducted a preliminary examination of registra- 
tions which had the beneficial result of obtaining 
necessary additional data and evidence. This pro- 
cedure was of great importance in enabling the 
Board to reach its decision, in most cases, soon 
after the opinions mentioned under (1) above were 
in hand. 

(3) Subject to receipt of the necessary state- 
ments of the examining agencies, etc. applica- 
tions were processed in the order in which the vari- 
ous issues were listed in the pi-ess announcement 
of August 26, 1953 (see exhibit 1) and in the order 
of receipt of such registrations by the Board. In 
spite of a very heavy work load, the Board, as a 
rule, was able to observe the six months' time limit 
prescribed in Article 5, paragraph 3 of the Second 

Departmenf of State Bulletin 

Implementing Ordinance under the Validation 
Law. In those cases where the rule could not be 
observed, the authority provided in the Second 
Implementing Ordinance under the Validation 
Law had to be made use of (see the observations 
under 6 below). 

(4) During the first six months of registration, 
i. e., up to February 28, 1954, the Board had re- 
ceived bonds in a total face amount of $90,129,500 
and had validated bonds with a face amount total- 
ling $43,019,800. 

At the end of the next three months, i. e. 
through May 31, 1954, registrations totalled $115,- 
101,600 of which $80,311,900 were validated. 

At the end of the period covered by this report, 
a total of $124,796,400 face amount of bonds had 
been registered with the Board through both de- 
positaries and bonds in a face amount of $93,- 
579,900 had been validated; $55,621,400 thereof 
had been registered with the General Depositary 
and $38,820,100 thereof validated. $69,175,000 
had been registered with the Special Depositary, 
$54,759,800 of which had been validated (see Ex- 
hibit 6). 

(5) As of August 31, the Board had not invali- 
dated any bonds although in possession of a con- 
siderable number of registrations against which 
there is substantial opposing evidence. Some of 
these registrations represent fairly large amounts. 
The procedure, however, has not yet been com- 
pleted in any of these cases. The reason for this 
may, in particular, be found in the ample time 
limits the Board allows to the parties concerned 
for submission of additional evidence and other 

(6) A large part of the registrations, especially 
those which came from outside the United States, 
were accompanied by insufficient evidence or no 
evidence at all. Therefore, it has been necessary 
to enter into extensive, and often time-consuming, 
correspondence with registrants and other persons 
or agencies. On the other hand, there were many 
registrations, especially those from the United 
States, which were accompanied by very good 

(7) In this connection it should be noted that 
the Validation Board must conduct a very careful 
examination of registered bonds in accordance 
with the legal requirements of the Validation 
Law and the agreements between the Federal Re- 
public of Germany and the United States of 
America regarding validation. 

The primary purpose of the examination is to 
determine the location of the registered bonds on 
January 1, 1945. The jurisdiction of the Valida- 
tion Board covers the validation of German dollar 
bonds which at said date were "outside of Ger- 
many" within the meaning of Article 3, paragraph 
2 of the Validation Law. Only such bonds are, 
under the applicable legislation, to be validated by 
the Board. On the other hand, the jurisdiction 
of the Validation Board does not extend to prob- 
lems regarding title to bonds registered for valida- 
tion. Controversies on such issues are left to the 
courts. In order to explain these points the Board 
has had to engage in a considerable amount of 

(8) According to jiaragraph 3 of Article 63 of 
the Validation Law, a registrant is entitled to ob- 
tain from the issuer reimbursement of expenses 
"necessarily incurred by him by virtue of the regis- 
tration and the examination proceeding . . .". 

The Validation Board malces the decision as to 
whether counsel fees may be allowed in any par- 
ticular case and as to the amount of such fees, if 
allowed. The Board, in general, has followed the 
rule that the services of attorneys are not necessary 
in the normal registration because the instructions 
which are included in the registration foi-ms and 
the detailed supplementary information contained 
in the explanatory pamphlet, distributed widely 
and without charge, are readily understandable 
by the layman. 

Under the procedure provided in Article 12 of 
the Agreement of February 27, 1953, and in Arti- 
cle 63, paragi'aph 5 of the Validation Law, the 
reimbursement of exjijcnditures other than counsel 
fees, may be granted on behalf of the issuers by the 
German Member of the Validation Board in his 
cajDacity as Foreign Representative of the Federal 
Republic of Germany (see Section I c of this re- 
port). As far as such expenditures include bank, 
broker and similar fees, the Foreign Representa- 
tive, as a rule, followed recommendations which 
he had obtained before the first decisions were 
made from prominent representatives of the New 
York financial community. 


The Validation Board established with its de- 
positaries a procedure under which the registrant 
is permitted, at the time of registration, to elect 
either to have his old bonds returned to him after 
validation (with validation certificates affixed 

January 24, 7955 


thereto), or to have the old bonds exchanged for 
new bonds. If at the time of validation an ex- 
chanjre offer has not yet been made the depositary 
is prepared to retain the validated bonds for the 
registrant until it may be exchanged for a new one. 

The Validation Board is required under para- 
graph 5 of Article 5 of the Second Implementing 
Ordinance under the Validation Law to cause a 
"forgery proof certificate" (Validation Certifi- 
cate) to be aflixed to validated bonds which are 
returned to the registrant instead of being ex- 
changed. The allixation of this certificate is car- 
ried out by the comjjetent depositary, pursuant to 
the order of the Validation Board. 

During the period covered by this report, bonds 
in the face amount of $93,579,900 have been vali- 
dated by the Board. Of this total amount certifi- 
cates have been attached to bonds in the face 
amount of $55,104,000, of which $28,441,500 of a 
total of $38,820,100 validated were handled by the 
Board's General Depositary, and $2G,GG3,100 of 
a total of $54,759,800 validated were handled by 
the Board's Special Depositary. $14,990,400 of 
the $26,063,100 face amount of Dawes, Young and 
Prussian Bonds to which validation certificates 
have been aflixed were subsequently exchanged by 
the Special Depositary under the applicable ex- 
change offer of the Federal Republic, dated 
October 6, 1953. 


During the period covered by this report the 
Validation Board has, in addition to the publicity 
mentioned above in (a), given a great deal of in- 
formation through correspondence, by telephone 
and in person to individuals, organizations, gov- 
ernmental agencies. Members of Congress, lawyers 
and newspaper men. Most of these inquiries came 
from the U.S., but many were also received from 
Germany and many other countries. To cover 
certain groups of inquiries form letters were pre- 
pared. Most of these inquiries, however, had to 
be answered individually. 

However, the Validation Board has had to re- 
fuse to answer certain questions because of legal 
restraint.s. This occuiTed, for instance, where in- 
formation on specific registrations or groups of 
registrations was sought in which the inquirer 
did not have a direct interest. Article 22, para- 
graph 4 and Article 24, paragraph 2 of the Valida- 
tion IjEw limit those entitled to be informed as 

to the content of registrations (such as names of 
registrants and beneficial owners) to the trustees, 
paying agents, examining agencies and issuers. 
Furthermore, the American Member of the Board 
considers himself subject to the provisions of Title 
18, Section 1905 of the United States Code, and, 
therefore, strictly limited as to the type of infor- 
mation which he can release. 

III. Expenses of the Validation Procedure 

According to Article 13, paragraph (a) of the 
Agreement Between the United States and the 
Federal Republic of Germany, dated February 27, 
1953, the costs resulting from the implementation 
of the Validation Law in the United States will 
be paid by the Federal Republic of Germany. Up 
luitil August 31, 1954, total costs to the Federal 
Republic of Germany for the validation procedure 
in the United States amounted to $448,354.65. Al- 
most two-thirds of this sum was devoted to paying 
the fees of the Board's depositaries, expenses for 
the public announcements (see Article 5 of the 
afore-mentioned Agreement, dated February 27, 
1953) and printing expenses including those for 
the steel engraved validation certificates. Part of 
these expenses, the amount of which has not as 
yet been determined, will have to be reimbursed to 
the Federal Republic of Germany by the Gennan 
issuers according to Articles 63 and 64 of the Vali- 
dation Law. 

iV. Related Problems 


The possibility of collective validation of Ger- 
man Foreign Currency Bonds is provided under 
Articles 13 and 55 to 58 of the Validation Law. 
Collective validation takes place after application 
of the issuei-s, by decision of the Federal Minister 
of Finance in conjunction with the Federal Min- 
ister of Justice. 

During the period covered by this report the 
Consolidated Hydro-Electric Works of Upper 
Wurttemberg. 7% First Mortgage Thirty-Year 
Sinking Fund Gold Bonds, due January 15, 1956 
(C IV No. 12 in the Schedule of Foreign Cur- 
rency Bonds attached to the Validation Law) 
were collectively validated, affecting 333 bonds in 
the total face amount of $311,000 which had been 
deposited with tlie Board's General Depositary. 
Also during the report period the German Federal 
Govermnent and the Govermnent of the United 


Department of Stale Bulletin 

States of America, through an exchange of notes, 
have agreed to the collective validation of not to 
exceed $62,000,000 in face amount of German Dol- 
lar Bonds which are located in Europe and which 
were held by Belgian, British, Luxembourg, 
Swedish or Swiss interests on January 1, 1945. 

The Validation Board as such is not concerned 
with the matter of collective validation except to 
the extent that provision has been made for the 
afiixation of its validation certificates (see Section 
II d of this report) to collectively validated bonds 
which are not submitted in exchange for new bonds 
or redeemed. The validation certificates have al- 
ready been affixed to the 333 bonds of the Con- 
solidated Hydro-Electric Works of Upper Wurt- 
temberg previously referred to. 


The Validation Board does not have jurisdic- 
tion with respect to problems arising out of trad- 
ing in German dollar bonds. Nevertheless, there 
is a relationship in fact between the activities of 
the Board and such trading. This relationship 
arises in large part as a result of regulations of 
the Securities and Exchange Commission in 
Washington, D.C. When that Commission on 
January 11, 1954, lifted its ban on trading in Ger- 
man bonds it provided that those bonds which 
require validation might not be dealt in by banks, 
brokers, or security dealers, ". . . unless (a) such 
security has been duly validated, and (b) if such 
security is a dollar security, there is attached a 
document of the Validation Board for German 
Dollar Bonds certifying to the validation of such 
security." (SEC order 34-4983 of January 11, 
1954) .= The Validation Board has kept the SEC 
informed at all times as to the progress which it 
has made in validating bonds. 


Pursuant to Article 18 of the Validation Law, 
the German Member of the Validation Board in 
his capacity as German Foreign Representative 
(see Section I -d- of this report) provides facili- 
ties for receijit and transmission to the competent 
authorities of registrations of German Foreign 
Currency Bonds which are not subject to the juris- 
diction of the Board (for example, £ Sterling or 
Swiss franc bonds or dollar bonds held inside 

'Ibid., Feb. 1, 1954, p. 159. 
January 24, 1955 

Germany on January 1, 1945). The same applies 
to applications for declaratory decrees. During 
the period covered by this report quite a substan- 
tial nimiber of such registrations have been re- 
ceived and were forwarded to the competent 
authorities. In addition, advice regarding such 
registrations has been given to a large niunber of 


Special problems have arisen in connection 
with cases concerning the restitution of German 
Dollar Bonds which were confiscated in Germany 
during the Nazi regime. The decision in these 
cases falls within the competence of the various 
Chambers for the Settlement of Securities in the 
Federal Republic and West Berlin. The Foreign 
Representative, however, assists registrants in 
these cases by giving them advice and forwarding 
their applications. 


The German Member of the Validation Board is 
likewise in charge of the German Security Set- 
tlement Advisory Agency. In this capacity he is 
required to disseminate information regarding the 
validation of Reichsmark securities. It was 
necessary to devote a substantial period of time 
during the registration period to this task. 

V. Cooperation With the Board 

Mention has already been made of the valuable 
assistance the Board has received from other 
agencies and organizations, firms, individuals and 
the press, some of which have been previously 
mentioned by name, e. g. the Amt fuer Wert- 
papierbereinigung, the Securities and Exchange 
Commission and the depositaries (The National 
City Bank of New York and J. P. Morgan and 
Co. Incorporated). 

We regret that space does not allow us to 
enumerate all agencies and persons without whose 
assistance or cooperation the work which has here 
been reported could not have been achieved. 

However, the Board would not wish to conclude 
the report without calling special attention to the 
assistance which has been rendered to it by the 
Office of International Finance of the United 
States Treasury Department and the Federal Re- 
serve Board in Washington, D. C, the Bank 
Deutscher Laender in Frankfort on Main, the 


Federal Reserve Bank of New York, the Foreign 
Bondholders Protective Council, Inc., the United 
States Committee for German Corporate Dollar 
Bonds, the two Stock Exchanges in New York, the 
National Association of Securities Dealers, the 
Swiss Bankers Association in Basle, Doremus and 
Company, New York (in public relation matters), 

as well as the American Bank Note Company, New 
York, which engraves the validation certificates. 



United States Member 

Dr. jur. Walther Reusch 

German Member 

[Exhibit 1 — press announcement to holders of German 
doliar l)onj8 issued on August 26, 1953, by the Validation 

[Exhibit 2 — explanatory pamphlet for use in connection 
with prepiiration and filing of Registration Form for Vali- 
dation of German Dollar Bonds in United States.] 

Exhibit 3 


September 1953 
October . . . . 
November . . . 
December . . . 
January 1954 
February . . . 
March . . . . 





August . . . . 

Total . . 




Faa amount 


Fau amouitf 


$23, 536, 800 


$15, 108, 400 


12, 257, 800 


8, 708, 100 


4, 857, 400 


4, 214, 700 


4, 302, 000 


4, 304, 100 


4, 120, 500 


4, 264, 300 


5, 721, 900 


3, 733, 500 


4, 321, 800 

1, 128 

3, 291, 100 


3, 456, 900 


4, 519, 000 


1, 720, 800 


2, 662, 500 


2, 284, 000 


1, 664, 300 


710, 000 


1, 522, 100 


1, 890, 100 


1, 629, 300 

12, 236 $69, 180, 000 

21, 374 $55, 621, 400 

Exhibit 4 


(Amount of flpires expressed In thousands of dollars) 

For the period Sept. 1, 1953 to Nov. 30, 1953 For the period Sept. 1, 1953 to August 31, 19M 

Nafl. City Nafl. City 

LcaUlm Bank J. P. Morgan Total Bank J. P. Morgan Total 

Alabama 55. 5 48. 1 103. 6 68. 4 66. 1 134. 5 

Arizona 42.5 133.3 175.8 59.2 145.3 204.5 

Arkansas 33. 8 14. 47. 8 35. 9 16. 51. 9 

California 946. 2 3, 339. 2 4, 285. 4 1, 537. 1 3, 867. 4 5, 404. 5 

Colorado 175. 214. 3 389. 3 275. 8 303. 3 579. 1 

Connecticut 463.6 577.5 1,041.1 526.3 663.5 1,189.8 

Delaware 15. 4 13. 28. 4 80. 4 19. 99. 4 

Florida 358. 9 600. 8 959. 7 573. 9 788. 4 1, 362. 3 

Georgia 150. 7 238. 1 388. 8 176. 8 277. 6 454. 4 

Idaho 6. 7 3. 5 10. 2 13. 6 3. 5 17. 1 

Illinois 1, 878. 2, 225. 3 4, 103. 3 3, 043. 3 2, 904. 6 5, 947. 9 

Indiana 102. 4 206. 7 309. 1 181. 263. 7 444. 7 

Iowa 157.9 268.2 426.1 315.7 353.9 669.6 

Kansas 65. 2 284. 4 349. 6 98. 9 390. 488. 9 

Kentucky 133. 5 249. 6 383. 1 164. 4 326. 8 491. 2 

Louisiana I95. g 98. 4 294. 2 293. 145. 4 438. 4 

Maine 165.4 76.7 242.1 270.1 120.2 390.3 

Maryland 5I6. 4 373. 9 895. 3 681. 1 648. 6 1, 329. 7 

Ma.s,snchu8ettB 772.4 737.1 1,509.5 1,118. 978.3 2,096.3 

^''* Department of State Bulletin 

(Amount of figures expressed In thousands) 

For the period Sept. 1, 1953 to Nov. 30, 1953 
Nafl. City 

Location Bank J .P. Morgan Total 

Michigan 506. 7 559. 6 1, 066. 3 

Minnesota 436. 2 848. 9 1, 285. 1 

Mississippi 85.5 62. 147.5 

Missouri 1,271.3 979.6 2,250.9 

Montana 35. 6 42. 7 78. 3 

Nebraska 502. 3 280. 4 782. 7 

Nevada 41. 10. 51. 

New Hampshire 58.7 51.5 110.2 

New Jersey 1, 127. 8 1, 365. 6 2, 493. 4 

New Mexico 11. 6. 1 17. 1 

New York 9, 268. 15, 180. 6 24, 448. 6 

North Carolina 19. 7 33. 2 52. 9 

North Dakota 8. 7 28. 2 36. 9 

Ohio 581. 9 2, 596. 8 3, 178. 7 

Oklahoma 207. 102. 309. 

Oregon 161. 7 257. 418. 7 

Pennsylvania 1, 651. 2, 609. 5 4, 260. 5 

Rhode Island 96. 1 77. 5 173. 6 

South Carolina 112.5 160.5 273. 

South Dakota 43. 8 14. 6 58. 4 

Tennessee 100. 92. 192. 

Texas 547. 8 229. 1 776. 9 

Utah 10. 5 7. 17. 5 

Vermont 52. 6 129. 1 181. 7 

Virginia 77. 5 180. 4 257. 9 

Washington 224. 4 228. 5 452. 9 

West Virginia 23. 8 20. 43. 8 

Wisconsin 624. 8 765. 9 1, 390. 7 

Wyoming 6. 3. 9. 

Alaska 12. 2 12. 2 

Hawaii 4. 39. 5 43. 5 

Washington D. C. and all other territories and de- 
pendencies in the U. S 195. 3 164. 5 359. 8 

Canada 175. 9 497. 1 673. 

Cuba 345. 7 215. 560. 7 

Mexico 108. 1 51. 159. 1 

All Central American Countries 1. 50. 51. 

Argentina 12. 9 155. 167. 9 

Brazil 87. 4 5. 92. 4 

Chile 18. 8 26. 5 45. 3 


Venezuela 11. 

All other South American Countries 187. 2 

Austria 67. 9 

Belgium and Luxemburg 96. 8 

Bulgaria and Albania — 

Czechoslovakia 2. 3 

Denmark and Iceland 36. 

France 138. 9 

Germany 41. 1 

' Great Britain and Ireland, Eire 430. 3 

Greece 2. 

Hungary — 

Italy 7. 6 

Netherlands 142. 7 

Norway and Finland 208. 

Poland — — 

Portugal 5. 5 16. 

Rumania 1. — 

For the period 

Naft. City 






50. 8 



2, 097. 1 

13, 730. 2 


2, 856. 4 

660. 1 




17. 1 


1, 752. 4 








Sept. 1, 1953 to August 31, 1954 








1, 031. 7 

103. 9 

190. 3 




50. 6 

746. 1 


21. 6 


12. 1 
217. 4 

982. 5 




731. 9 



J. P. Morgan 


1, 105. 2 


1, 337. 4 





1, 857. 8 

6. 1 

20, 410. 2 


44. 2 

3,811. 1 



3, 494. 6 














754. 4 











1, 283. 9 




1, 444. 1 
1, 805. 6 

3, 008. 9 


947. 1 

210. 3 

3, 954. 9 

17. 1 

34, 140. 4 



4, 730. 9 

6, 351. 
354. 2 


67. 1 
391. 1 


1, 944. 3 

35. 1 

2, 506. 8 
1, 177. 4 

292. 9 




1, 232. 1 


372. 5 


1, 670. 2 

2, 133. 1 



178. 1 




January 24, J 955 


(Amount of flgares expressed in thousands) 

For the period Sept. 1, 1953 to Nov. 30, 1963 For the period Sept. 1, 1963 to J 

Nafl. cut ^'<"J- ^V , „ ., 

loealion Bank J. P. Morgan Total Bank J. P. Morgan 


Spain 41. 8. 5 49. 5 186. 5 49. 5 

Sweden 117. 3 207. 324. 3 160. 3 275. 

Switzerland 1,316.6 545. 1,861.6 11,043.5 13,476. 

Turkey — — — 5.4 — 

Yugoslavia — — 

Algeria, Morocco and Tangiers — — — 13-6 19. 32. 6 

Egypt — 1. 1- — 5. 5. 

Union of South Africa — 74. 74. 17.3 74. 91.3 

AU other African Countries 7. — 7. 8. — 8. 

China — 60. 60. 1. 3 62. 63. 3 

Formosa — — — — 

India and Pakistan 2. — 2. 2. 3 — 2. 3 

Indo China and Thailand — — — -5 9. 9. 5 

Israel 7. 3 2. 9. 3 10. 8 2. 12. 8 

Iran, Iraq, Saudi Arabia, Lebanon and Yemen . . 2. — 2. 8. 3 — 8. 3 

Malaya — — — 2. — 2. 

All other Asiatic Countries 14. 5 — 14. 5 41. 5 — 41. 5 

Australia and New Zealand — — — 9. 3 5. 14. 3 

Japan 4. 4 — 4. 4 8. 2 210. 218. 2 

Philippines 3. 3 — 3. 3 4. 4 — 4. 4 

All other Pacific Islands — — — 2. 1 — 2. 1 

ToUl 27, 984. 2 40, 652. 68, 636. 2 55, 621. 4 69, 175. 124, 796. 4 

Exhibit S 


Dawet, Young and Pruxstan Loans (No9. 1-i) 

a) Banks, Brokers and Similar Institutions, 1. U. S. A 7, 455, 500 

2. Switzeriand .... 1, 104, 500 

3. Others 2, 383, 000 

b) Individuals, 1. U. S. A 3, 026, 100 

2. Switzerland .... — 

3. Others 845, 000 

o) Trustees (including Estates), U. S. A 

d) Schools, Universities, Religious and Charitable 

Organizations U. S. A 

AU other Loam (Not. 6-9t) 

a) Banks, Brokers and Similar Institutions, 1. U. S. A — 

2. Switzerland .... 681,000 

3. Others 1, 373, 000 

b) Individuals, 1. U. S. A 891, 000 

2. Switzerland .... — 

3. Others 505, 000 

o) Trustees, (including Estates), 
d) Schools, Universities, Religious and Charitable 

-10, 943, 000 

3, 871, 100 
1, 144, 500 

1, 109, 000 

2, 054, 000 

1, 396, 000 



Deporfmenf of Sfafe Bulletin 


Issue No. 
(American List 
see ExhibU 1) 

Number of pieces 
registered as of 
August SI, 195i 

Face amount 
registered as of c 
August SI. I95i 

Face amount of 

)onds validated 

s of August SI, 


Issue No. 
{American List 
see EiMbU I) 

Number of pieces 
registered as of 
August SI, 19Bi 

Face amount 
registered as of 
August SI, l9Si 

Face amount of 

bonds validated 

as of August SI, 





$25, 526, 800 

$20, 130, 900 








39, 312, 200 

32, 340, 900 



$82, 500 

$79, 500 




2, 291, 000 

985, 000 



335, 500 

283, 500 




2, 045, 000 

1, 303, 000 



189, 000 

150, 000 



223, 500 

198, 000 



229, 500 

186, 500 



692, 000 

622, 000 




67, 500 



787, 000 

605, 500 



591, 000 

437, 000 



410, 500 

339, 000 




43, 000 




1, 460, 500 

1, 045, 000 



194, 000 

107, 000 




1, 398, 000 

1, 030, 000 



100, 500 

93, 500 



921, 000 

803, 000 



175, 000 

157, 500 



974, 000 

607, 000 



77, 000 

68, 000 




536, 000 



82, 500 

63, 000 



572, 500 

454, 000 



629, 000 

424, 000 



828, 500 ■ 

688, 000 



123, 500 

87, 500 



83, 500 

78, 000 



94, 000 

62, 000 



598, 500 

429, 500 



167, 500 




272, 500 

246, 500 



1, 361, 000 

1, 028, 000 



906, 500 

702, 000 



493, 000 

451, 000 



691, 500 

593, 000 



193, 000 








237, 500 

199, 000 




5, 987, 400 

4,011, 100 



168, 000 

160, 000 




394, 100 

228, 700 



188, 000 

158, 000 



183, 000 

159, 000 



1, 307, 000 

336, 000 



345, 000 

263, 000 



607, 500 

268, 000 



169, 000 

134, 000 



762, 000 

395, 500 



434, 000 

400, 600 



571, 500 

410, 500 



242, 000 

210, 000 



841, 000 




128, 000 

116, 500 


1, 114 

1, 038, 000 

766, 000 



769, 000 

667, 000 



860, 000 

670, 000 



519, 500 

403, 000 







359, 000 

319, 000 



598, 000 

547, 000 




932, 000 

798, 000 



125, 000 




844, 000 

382, 500 



361, 000 

285, 000 




1, 190, 500 

975, 000 



80, 000 

60, 000 





1, 167, 000 



883, 000 

360, 000 




2, 930, 000 

2, 362, 000 



204, 400 

21, 800 



732, 000 

664, 500 



152, 000 

130, 500 





973, 000 



274, 500 

235, 000 



957, 000 

497, 000 



224, 000 

185, 000 



160, 000 




1, 335, 000 

608, 000 



519, 500 

329, 000 



457, 000 

149, 000 



287, 500 

249, 000 



1, 990, 000 

588, 000 





832, 500 



195, 500 

177, 000 



453, 000 

419, 000 


1, 117 

105, 500 
1, 070, 500 

85, 500 
789, 500 

*Loan no. 
Section IV ( 

21 has been collectively validatec 
l1. The listed honHs have hfien t 

; see Report, 

pfTistprerl for 



424, 000 

292, 000 

' individual validation. 

146, 912 $124, 796, 400 $93, 679, 900 

January 24, 7955 


Mutual Defense Treaty with Republic of China Transmitted to Senate ^ 


The White House, January 6, 1955. 

To the Senate of the United States: 

With a view to receiving the advic« and consent 
of the Senate to ratification, I transmit herewith 
the Mutual Defense Treaty between the United 
States of America and tlie Republic of China, 
signed at Washington on December 2, 1954.^ 

I transmit also for the information of the Sen- 
ate a document containing statements made by 
the Secretary of State and the Chinese Minister 
forForeign Affairs on the occasion of the initialing 
of the treaty on December 2, 1954, together with a 
joint statement regaixling conclusion of negotia- 
tions for the treaty issuetl simultaneously in Wash- 
ington and Taipei on December 1, 1954.^ 

There is further transmitted for the informa- 
tion of the Senate the rejiort made to me by the 
Secretary of State regarding the treaty. 

Finally, there are transmitted for the informa- 
tion of the Senate texts of notes exchanged by the 
Secretary of State and the Minister for Foreign 
Affairs of the Republic of China on December 10, 
1954, which, while not a part of the treaty, ex- 
press agreed understandings as to certain phases of 
its implementation. 

The Mutual Defense Ti'eaty between the United 
States of America and the Republic of China is 
defensive and mutual in chanu-ter, designed to 
deter any attempt by the Chinese Commimist 
regime to bring its aggressive militaiy ambitions 
to bear against the treaty area. 

This Mutual Defense Treaty, taken in conjunc- 
tion with similar treaties already concluded with 
Japan, Kore^a, the Philippines, and Australia and 
New Zealand, reinforces the systein of collective 
security in the Pacific area. It is also comple- 

■ Uoprlntwl from S. Exec. A, 84th Cong., 1st sess. 
' For text, WH- Hiilctin iif Dec. l.*?. 19.-.4, p. 899. 
• Ibid., pp. 80S find 80.1. 


mentary to the action taken in the signing of the 
Southeast Asia Collective Defense Treaty at Ma- 
nila on September 8, 1954. 

I recommend that the Senate give early and 
favorable consideration to the treaty submitted 
herewith, and advise and consent to its ratifica- 



Department of State, 
Washington, December 22, 1951^. 
The President, 

The White House : 

I have the honor to submit to you, with a view 
to the transmission thereof to the Senate for its 
advice and consent to ratification, the Mutual De- 
fense Treaty between the United States of 
America and the Republic of China, signed at 
Washington on December 2, 1954. 

The history of the negotiation of this treaty 
extends over the past year. Preliminary con- 
sideration of such a treaty was given following a 
pi'oposal firet made by the Republic of China in 
December 1953. Following the signature of the 
Manila Pact on September 8, 1954,* it seemed 
more than ever appropriate that this treaty should 
be made. I, therefore, visited Taipei on Septem- 
ber 9, 1954, and discu.ssed the scope and nature of 
the projected treaty with President Chiang Kai- 
shek. Following my return to the United States, 
it was decided in principle to proceed actively to 
conclude the treaty, and to this end the Assistant 
Secretaiy of State for Far Eastern Affairs, Mr. 
Robertson, went to Formosa (Taiwan) in Oc- 
tober 1954. Subsequent negotiations were con- 
ducted at Washington. The principal negotiator 
for the Republic of China was His Excellency 

* IhxA., Sept. 20, 1054, p. 393. 

Deparfmenf of Sfafe B\j\\e\\n 

Yeh Kung-ch'ao, Minister for Foreign Affairs, 
who was available in Washington concurrently 
with his work as head of the Chinese delegation 
to the United Nations. 

This treaty represents another link in the chain 
of collective defense arrangements in the West 
Pacific which bind the nations of the free world 
together in their common determination to resist 
further encroachments by the forces of commu- 
nism. The treaty is entirely defensive in charac- 
ter and intent. It is based on a mutuality of 
interest and responsibility. Even though bilateral 
and limited in scope to but one area of the world, 
the treaty reaffirms, in the first paragraph of the 
preamble and repeated elsewhere through the 
text of the treaty, the signatories' faith in, and 
deep sense of responsibility in working toward 
fulfillment of, the principles and purposes of the 
United Nations. 

The treaty consists of a preamble and 10 sub- 
stantive articles. The preamble reaffirms the ad- 
herence of both Govermnents to the aims of the 
United Nations and their peaceful intentions, re- 
calls their relationship during World War II, 
declares their sense of unity and determination to 
defend themselves against external armed attack 
"so that no potential aggi-essor could be under 
the illusion that either of them stands alone," 
and contemplates further development of a more 
comprehensive system of regional security in the 
West Pacific area. 

Article I contains provisions similar to those in 
comparable articles of other security treaties. By 
its terms the parties reaffirmed their solemn obli- 
gations under the Charter of the United Nations 
to settle by peaceful means any international dis- 
putes in which they may be involved, and to re- 
frain in their international relations from the 
threat or use of force inconsistent with the pur- 
poses of the United Nations. 

Article II incorporates in the treaty the prin- 
ciple of the Vandenberg resolution (S. Res. 239, 
80th Cong. ) , which advises that regional and col- 
lective security arrangements joined in by the 
United States be based on continuous self-help 
and mutual aid. The parties pledge themselves 
by such means to maintain and develop their in- 
lividual and collective capacity to resist armed 
ittack and Commiinist subversive activities di- 
rected from without against their territorial 
ntegrity and political stability. 

Article III confirms the agi-eement of the two 
parties to strengthen the base of freedom and to 
cooperate in economic and social advances which 
are so closely connected both with a successful 
resistance to communism and also with the greater 
welfare of the people. 

Consultation regarding implementation of the 
treaty, as the need arises, is provided for under 
article IV. 

By article V, each party recognizes that an 
armed attack in the West Pacific area directed 
against the territories of either party would be 
dangerous to its own peace and safety and declares 
that it would act to meet the common danger in 
accordance with its constitutional processes. Here 
again the treaty makes it clear that there is to be 
no conflict with the United Nations, for measures 
taken to deal with an external armed attack are 
to be reported immediately to the Security Council 
of the United Nations and such measures as are 
taken will be terminated when the Security Coun- 
cil has taken the measures necessary to restore 
and maintain international peace and security. 

The territories to which articles II and V apply 
are specified in article VT to be — 

in respect of the Republic of Cliina, Taiwan, and the 
Pescadores ; and in respect of the United States of 
America, the island territories in the West Pacific under 
its jurisdiction. 

It is also provided that articles II and V will be 
applicable to such other territories as may be de- 
termined by mutual agreement. 

Article VII grants to the United States the right 
to dispose such land, air, and sea forces in and 
about Taiwan and the Pescadores as may be re- 
quired for their defense, as determined by mutual 
agreement. It does not make such disposition 
automatic or mandatory. 

Article VIII makes clear that the obligations 
of the parties under the treaty do not affect in any 
way their obligations under the United Nations 
Charter. It recognizes the primary responsibility 
of the United Nations in maintaining interna- 
tional peace and security. 

Articles IX and X specify that the treaty is to 
come into force with the exchange of ratifications 
at Taipei and that the treaty has indefinite dura- 
tion, with provision for termination on 1 year's 

There are also enclosed, with a view to their 
transmittal for the information of the Senate, the 
texts of notes exchanged between the Secretary of 

January 24, 7955 


State and the Chinese Foreign Minister, dated De- 
cember 10, 1954. These notes express the under- 
standing of tlie signatories with respect to some 
phases of the implementation and operation of the 
treaty. They make clear the recognition by the 
parties of the inlierent right of the Republic of 
China to the self-defense of all territory now or 
hereafter under its control. They confirm the un- 
derstanding of the parties that the use of force 
from such territories will be a matter of joint 
agreement, subject to action of an emergency char- 
acter in the exercise of the right of self-defense. 
They recognize the mutual interests of the parties 
by providing that military elements which are a 
product of joint etTort and contribution will not be 
removed from the treaty area to such an extent as 
substantially to affect its defensibility without 
mutual agreement. 

I believe that the treaty will serve as an impor- 
tant deterrent to possible Communist efforts to 
seize positions in the West Pacific area, which 
seizure, if attempted, would, in fact, provoke a re- 
action on the part of the United States. By mak- 
ing clear that we recognize that an armed attack 
on the treaty area would be regarded by us as dan- 
gerous to our own peace and safety and that we 
would act to meet the danger, we give the world 
notice which, we are entitled to hope, will prevent 
hostile miscalculations and thus contribute to the 
peace and security of the area. Therefore, I hope 
that this treaty will be given early and favorable 
consideration by the Senate. 

Respectfully submitted. 

John Foster Dtjlles, 

Secretary of State. 


Depautjient of St.\te, 
Washington, December 10, 196^. 
Ilis Excellency George K. C. Yeii, 

Minwter of Foreign Affairs of the Republic of 

Excellency : I have the honor to refer to recent 
convei-sations between representatives of our two 
Govcnmients and to confinn the understandings 

reached as a result of those conversations, as 
follows : 

The Republic of China effectively controls both 
the territory described in Article VI of the Treaty 
of Mutual Defense between the Republic of China 
and the United States of America signed on De- 
cember 2, 1954, at Washington and other territory. 
It possesses with respect to all territory now and 
hereafter under its control the inherent right of 
self-defense. In view of the obligations of the 
two Parties under the said Treaty, and of the fact 
that the use of force from either of these areas by 
either of the Parties affects the other, it is agreed 
that such use of force will be a matter of joint 
agreement, subject to action of an emergency char- 
acter which is clearly an exercise of the inlierent 
right of self-defense. Military elements which 
are a product of joint effort and contribution by 
the two Parties will not be removed from the terri- 
tories described in Article VI to a degi'ee which 
would substantially diminish the defensibility of 
such territories without mutual agreement. 

Accept, Excellency, tlie assurances of my high- 
est consideration. 

John Foster Dulles, 
Secretary of State of the 
United States of America. 

December 10, 1954. 
His Excellency John Foster Dulles, 

Secretary of State of the United States of 

Excellency : I have the honor to acknowledge 
the receipt of Your Excellency's Note of today's 
date, which reads as follows : 

[Text of U.S. note] 
I have the honor to confirm, on behalf of my 
Government, the undei-standing set forth in Your 
Excellency's Note under reply. 

I avail myself of this opportunity to convey to 
Your Excellency the assurances of my highest 

George K. C. Yeh 

Minister for Foreign Affairs 

of the Republic of China. 


Department of Sfafe Bulletin 

Report on Including Escape Clauses 
in Existing Trade Agreements ^ 


To the Congress of the United States: 

Pursuant to the provisions of subsection (b) of 
section 6 of the Trade Agreements Extension Act 
of 1951 (65 Stat. 72, 73), I hereby submit to the 
Congress a report on the inclusion of escape clauses 
in existing trade agreements. 

This report was prepared for me by the Interde- 
partmental Committee on Trade Agreements. 

DwiGHT D. Eisenhower 
The White House, 
January 10, 1956. 


Section 6 of the Trade Agi-eements Extension 
Act of 1951 reads as follows : 

(a) No reduction in any rate of duty, or binding of any 
existing cTistonjs or excise treatment, or other conces- 
sion hereafter proclaimed under section 350 of the Tariff 
Act of 1930, as amended, shall be permitted to continue 
in effect when the product on which the concession has 
been granted is, as a result, in whole or in part, of the 
duty or other customs treatment reflecting such conces- 
sion, being imported into the United States in such in- 
creased quantities, either actual or relative, as to cause or 
threaten serious injury to tiie domestic industry produc- 
ing lilve or directly competitive products. 

(b) The President, as soon as practicable, shall take 
such action as may be necessary to bring trade agreements 
heretofore entered into under section 350 of the TarifE -\et 
Df 1930, as amended, into conformity with the policy es- 
rablished in subsection (a) of this section. 

On or before January 10, 1952, and every six months 
;hereafter, the President shall report to the Congress on 
;he action taken by him under this subsection. 

As indicated in previous reports, escape clauses 
;omplying with the requirements of section 6 of 
'he Trade Agreements Extension Act of 1951 
lave been included in all trade agreements con- 
■luded under the act except those with Ecuador, 
SI Salvador, Guatemala, and Honduras. 

As regards Ecuador, the previous reports re- 
erred to discussions in progress between the Gov- 

' H. Doc. 64, 84th Cong., 1st sess. ; transmitted on Jan. 10. 
anuaty 24, 7955 

ernment of the United States and the Government 
of Ecuador with regard to the existing trade agi'ee- 
ment, including the possibility of inserting an es- 
cape clause in the agreement. The Government of 
Ecuador has been informed that it would be nec- 
essary to amend the trade agreement to include an 
escape clause. The discussions with Ecuador are 
still in progress. 

With regard to the trade agreements with the 
Governments of El Salvador, Guatemala and 
Honduras, there has been no change in the situa- 
tion in the last 6 months and, for the reasons given 
in the report of July 10, 1952, no further action 
with regard to insertion of the escape clause has 
been taken. 

Current Legislation on Foreign Policy: 
83rd Congress, 2d Session 

Investigation of Communist Takeover and Occupation of 
the Non-Russian Nations of the U. S. S. R. Eighth In- 
terim Report of Hearings before the House Select 
Committee on Communist Aggression under Authority 
of H. Res. 346 and H. Res. 438. Munich, Germany, June 
30 and July 1, 1954; New York, N. Y., October 11-14, 
1954 ; Chicago, 111., Oct. 18-19, 1954. 370 pp. 

To Protect Rights of United States Vessels on High Seas. 
Hearing before the House Committee on Merchant 
Marine and Fisheries on H. R. 9584. July 2, 1954. 71 

To Give Effect to the International Convention for the 
High Seas Fisheries of the North Pacific. Hearing be- 
fore the House Committee on Merchant Marine and 
Fisheries on H. R. 9786. July 13, 1954. 35 pp. 

Foreign Aid Procurement: Hexylresorcinal Purchases 
for Indochina. Hearing before a Sut)committee of the 
House Committee on Government Operations. July 22, 
1954. 166 pp. 

Investigation of Communist Takeover and Occupation of 
Hungary. Fifth Interim Report of Hearings before the 
Sultcominittee on Hungary of the House Select Com- 
mittee on Communist Aggression under Authority of 
H. Res. 346 and H. Res. 438. Washington, D. C, August 
20, 1954 : New York, N. Y., August 23-25, 1954 ; Cleve- 
land, Ohio, August 26-27, 1954. 323 pp. 

Japanese-American Evacuation Claims. Hearings before 
Subcommittee No. 5 of the House Committee on the 
Judiciary on H. R. 7435, To Amend the Japanese-Amer- 
ican Evacuation Claims Act of 1948. San Francisco, 
Calif., August 30-31. 19.54; Los Angeles, Calif., Sep- 
tember 1-3. 1954. 456 pp. 

Treatment of Jews by the Soviet. Seventh Interim Re- 
port of Hearings before the House Select Committee on 
Communist Aggression under Authority of H. Res. 346 
and H. Res. 438. New York, N. Y., September 22-23, 
1954. 120 pp. 

Communist Aggression in Latin America : Guatemala. 
Ninth Interim Report of Hearings before the Subcom- 
mittee on Latin America of the House Select Committee 
on Communist Aggression xmder Authority of H. Res. 
346 and H. Res. 438. Washington. D. C, September 27- 
29 and October 8, 1954; Los Angeles, Calif., October 
14-15, 1954. 295 pp. 


Summary of Treaty Actions by 83d Congress 

Actions on Treaties Submitted 
During 83d Congress 

ronvpiitioii bftwcen the United States of America and 
Belgium modifying and supplementing the convention 
of October 28, 1D4S, for the avoidance of double taxation 
and the prevention of fiscal evasion with respect to taxes 
on income. Signed at \\'ashlugton September 9, 1952 
(Executive A, 83d Cong,. 1st Sess.) ; submitted to the 
Senate January », 1953 ; advice and consent to ratifica- 
tion given by the Senate July 9, 1953; ratified by the 
President July 23, 1953; ratifications exchanged Septem- 
ber 9. 1953; proclaimed by the President September Zi, 
19,53; entered into force September 9, 1953. Treaties 
and other International Acts Series (TIAS) 2833. 

Protocol on the status of international military headquar- 
ters. Signed at Paris August 28, 1952 (Executive B, 
s;!d Cong., 1st Sess.) ; submitted to the Senate February 
27. r.1.53 ; advice ami consent to ratification given by 
the Senate July 15, 19."i;{; ratified by the President July 
24. l'.i,53; ratification deposited July 24, 1953; proclaimed 
by the President June 7, 1954; entered into force April 
10, 1954. TIAS 2978. 

Protocol between the United States of America and Fin- 
land modifying article IV of the treaty of friendship, 
commerce, and consular rights of February 13, 1934. 
Signed at Washington December 4, 1952 (Elxecutive C, 
8.3d Cong., 1st Sess.) ; submitted to the Senate April 21, 
19.53; advice and consent to ratification given by the 
Senate July 21, 19,5:5 ; ratifie<i by the President August 
4, 19,53; ratifications exchanged September 24, 1953; 
priK'lainied by the Pre.sident November 3, 1953 ; entered 
into force September 24, 1953. TIAS 2861. 

Agreement on German external debts. Signed at London 
February 27, 1953 ( Kxecutive I). S3d Cou«., 1st Sess.) ; 
submitted to the Seiuite April 10, 1953; advice and con- 
st-ut to ratification given by the Senate July 13, 19.53; 
ratified by the President 4, 19.53; ratification 
deiM>site<l SeptemlKT 10, 19.53; proclaimed by the Presi- 
dent November 4, 19.53 ; entered into force September 16, 
19.53. TIAS 2792. 

Agreement Ix'tween the UuKcd States of .Xnierica and the 
Federal Republic of (ieriuauy regarding llic .settlement 
of the claim of (he United States for postwar economic 
assistance (other than surplus proiRM'ty) to Germany. 
Signed at London February 27, 19.53 (Executive E, s;}d 
i'oMg., 1st Sess.) ; submitted to the Senate April 10, 
]!).53; advice and consent to ratification given by the 
Senate July 13, 19.53; ratified by the President August 
4, 19.53; ratifications exchanged Sepli-raber 15, 1953; 
pr(K'lalmc<l by the President October 19, 1953; enteretl 
Into force September 16, 1953. TIAS 2795. 

Ak'reement between the United Stales of America and the 
Ke<leral Kepubllc of (leiiiiany reliiting to llie indebted- 
ness of Germany for awards nnide by the Mixe<l Claims 
Commls,sloii, United States and Gernuiny. Signed at 
London February 27, 19.53 (Executive F, 83d Cong., 1st 


Sess.) ; submitted to the Senate April 10, 1953; advice 
and consent to ratification given by the Senate July 13, 
1953 ; ratified by the President August 4, 1953 ; ratifica- 
tions exchanged September 15, 1953 ; proclaimed by the 
President October 19, 1953 ; entered into force Septem- 
ber 16, 1953. TIAS 2796. 

Agre«'ment between the United States of America and the 
Federal Republic of Germany regarding certain matters 
arising from the validation of German dollar bonds. 
Signed at Bonn April 1, 1953 (Executive G, 83d Cong., 
1st Sess.); submitted to the Senate April 10, 1953; 
advice and consent to ratification given by the Senate 
July 13, 1953; ratified by the President August 4, 1953; 
ratifications exchanged September 15, 1953: proclaimed 
by the President October 19. 1953; entered into force 
September 16, 1953. TIAS 2794. 

Agreement revising and renewing the international wheat 
agreement of 1949. Concluded at Washington April 13, 
19.53 (Executive H, 83d Cong., 1st : submitted to 
the Senate June 2, 1953 ; advice and consent to ratifica- 
tion given by the Senate July 13, 1953 ; ratified by the 
President July 14, 1953 ; acceptance deposited July 14, 
1953; proclaimed by the President August 14, 1953; 
Parts 1, 3, 4, and 5 entered into force July 15, 1953 ; Part 
2 entered Into force August 1, 1953. TIAS 2799. 

Convention between the United States of America and 
Australia for the avoidance of double taxation and the 
prevention of liscal evasion with respect to taxes on 
Income. Signed at Washington May 14, 1953 (Execu- 
tive I, 83d Cong., Sess.) ; submitted to the Senate 
June 3, 1953 ; advice and consent to ratification given by 
the Senate July 9, 1953 ; ratified by the President July 
23, 1953; ratifii'ations exchanged December 14, 1953: 
proclaimed by the President December 22, 1953; entered 
into force December 14, 1953. TIAS 2880. 

Convention between the United States of America and 
Australia for tJie avoidance of double taxation and the 
prevention of fis<-al evasion with respect to taxes on the 
estates of decciised iiersons. Signed at Washington 
May 14, 19.53 (Executive J, 83d Cong., 1st Sess.) ; sub- 
mitted to the Senate June 3, 1953; advice and consent 
to ratification given by the Senate July 9, 1953; ratified 
by the President July 23, 1953; ratifications exchanged 
January 7, 1954; proclaimed by the President January 
20, 1954; entered into force January 7, 1954. TIAS 

Convention between the United States of America and 
Australia for the avoidance of double taxation and tbt 
prevention of fiscal evasion with respect to taxes or 
gifts. Signed at Washington May 14, 19.53 (Executivt 
K, Sid Cong., 1st Sess.) ; submitted to Senate June 3 
1953; advice and consent to ratification given by tht 
Senate July 9, 19.53 ; ratified by the IMesident July 23 
19.53; ratifications exchanged Deceiul>er 14, 1953; pro 
claimed by the President December 22, 1953; enteret 
into force December 14, 1953. TIAS 2879. 

Protocol for the prolongation of the international agree 
ment regarding the regulation of the production anc 

Department of State BuUetir 

marketing of sugar of May 6, 1937. Done at London 
August 30, 1952 (Executive L, 83d Cong., 1st Sess.) ; 
submitted to the Senate June 10, 1953 ; advice and 
consent to ratification given by the Senate July 27, 1953 ; 
ratified by the President September 1, 1953 ; ratification 
deposited October 2, 1953 ; proclaimed by the President 
November 5, 1953; entered into force for the United 
States October 2, 1953. TIAS 2862. 

Universal copyright convention, with protocols. Done at 
Geneva September 6, 1952 (Executive M, 83d Cong., 
1st Sess.) ; submitted to the Senate June 10, 1953 ; advice 
and consent to ratification given by the Senate June 25, 
1954 ; ratified by the President November 5, 1954 ; 
ratification deposited December 6, 1954.' 

Agreement between the United States of America and the 
Federal Republic of Germany concerning the treaty of 
friendship, commerce, and consular rights of December 
8, 1923, as amended. Signed at Bonn June 3, 1953 
(Executive N, 83d Cong., 1st Sess.) ; submitted to the 
Senate June 27, 1953 ; advice and consent to ratification 
given by the Senate with a reservation July 21, 1953 ; 
ratified by the President with a reservation October 8, 
1954 ; ratifications exchanged October 22, 1954, pro- 
claimed by the President November 5, 1954 ; entered 
into force October 22, 1954. TIAS 3062. 

Treaty of friendship, commerce, and navigation, with pro- 
tocol, between the United States of America and Japan. 
Signed at Tokyo April 2, 1953 (Executive O, 83d Cong., 
1st Sess. ) ; submitted to the Senate June 27, 1953 ; advice 
and consent to ratification given by the Senate with a 
reservation July 21, 1953 ; ratified by the President witli 
a reservation September 15, 1953 ; ratifications ex- 
changed September 30, 1953 ; proclaimed by the Presi- 
dent November 4, 1953 ; entered into force October 30, 
1953. TIAS 2863. 

Convention between the United States of America and 
Canada for the preservation of the halibut fishery of the 
Northern Pacific Ocean and Bering Sea. Signed at 
Ottawa March 2, 1953 (Executive P, 83d Cong., 1st 
Sess.) ; submitted to the Senate July 1, 1953 ; advice and 
consent to ratification given by the Senate July 27, 1953 ; 
ratified by the President August 18, 19.53 ; ratifications 
exchanged October 28, 1953 ; proclaimed by the Presi- 
dent January 7, 1954 ; entered into force October 28, 
1953. TIAS 2900. 

International convention to facilitate the importation of 
commercial samples and advertising material. Dated at 
Geneva November 7, 1952 (Executive Q, 83d Cong., 
1st Sess. ) ; submitted to the Senate July 7, 1953. 

International telecommunications convention with an- 
nexes and final protocol. Signed at Buenos Aires De- 
cember 22, 1952 (Exec-utive R, 83d Cong., 1st ; 
submitted to the Senate July 27, 1953. 

Mutual defense treaty between the United States of Amer- 
ica and Korea. Signed at Washington October 1, 1953 
(Executive A, 83d Cong., 2d Ses.s.) ; submitted to the 
Senate January 11, 1954 ; advice and consent to ratifica- 
tion given by the Senate with an understanding January 

, 26, 1954 ; ratified by the President with an understand- 
ing February 5, 1954 ; ratifications exchanged November 
17, 1954; proclaimed by the President December 1, 
1954 ; entered into force November 17, 1954. TIAS 3097. 

International sugar agreement. Dated at London October 
1, 1953 (Executive B, 83d Cong., 2d Sess.) ; submitted 
to the Senate February 3, 19.54 ; advice and consent to 
ratification given by the Senate with an understanding 
April 28, 1954 ; ratified by the President with an under- 

' Not in force. 

standing April 29, 1954 ; ratification deposited May 3, 
1954 ; entered into force May 5, 1954. 

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, 19.53 (Executive C, 83d Cong., 2d Sess.) ; sub- 
mitted to the Senate April 14, 1954 ; advice and consent 
to ratification given by the Senate August 20, 1954 ; 
ratified by the President September 14, 1954. 

Convention between the United States of America and 
Japan for the avoidance of double taxation and the pre- 
vention of fiscal evasion with respect to taxes on income. 
Signed at Washington April 16, 1954 (Executive D, 83d 
Cong., 2d Sess.) ; submitted to the Senate May 7, 1954. 

Convention between the United States of America and 
Japan for the avoidance of double taxation and the pre- 
vention of fiscal evasion with resiject to taxes on es- 
tates, inheritances, and gifts. Signed at Washington 
April 16, 1954 (Executive E, S3d Cong., 2d Sess.) ; sub- 
mitted to the Senate May 7, 1954. 

Protocol amending the slavery convention of September 25, 
1926, and annex. Done at New York December 7, 1953 
(Executive F, 83d Cong., 2d Sess.) ; submitted to the 
Senate May 27, 1954. 

Convention between the United States of America and 
Belgium for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
estates and successions. Signed at Washington May 
27, 1954 (Executive G, 83d Cong., 2d Sess.) ; submitted 
to the Senate June 22, 1954. 

Supplementary protocol between the United States of 
America and the United Kingdom amending the conven- 
tion of April 16, 1945, for the avoidance of double taxa- 
tion and the prevention of fiscal evasion with respect to 
taxes on income as modified by the supplementary pro- 
tocol of June 6, 1946. Signed at Washington May 25, 
1954 (Executive H, 83d Cong., 2d Sess.) ; .submitted to 
the Senate June 22, 1954 ; advice and consent to ratifi- 
cation given by the Senate August 20, 1954 ; ratified by 
the President September 22, 1954. 

Notification with a view to extending the operation of the 
income tax convention of April 29, 1948, respecting taxes 
on income and certain other taxes, to the Netherlands 
Antilles with certain limitations by the Netherlands 
Government. Note dated June 24, 1952 (Executive I, 
83d Cong., 2d Sess.) ; submitted to the Senate July 24, 

Convention between the United States of America and the 
Federal Republic of Germany for the avoidance of dou- 
ble taxation with respect to taxes on income. Signed 
at Washington July 22, 1954 (Executive J, 83d Cong., 
2d S&ss.) ; submitted to the Senate July 29, 1954 ; advice 
and consent to ratification given by the Senate August 
20, 1954; ratified by the President September 22, 1954; 
ratifications exchanged December 20, 1954 ; proclaimed 
by the President December 24, 1954 ; entered into force 
December 20, 1954. 

Southeast Asia collective defense treaty and protocol. 
Signed at Manila September 8, 1954 (Executive K, 83d 
Cong., 2d Sess. ) ; submitted to the Senate November 10, 

Protocol on the termination of the occupation regime in 
the Federal Republic of Germany. Signed at Paris Oc- 
tober 23, 1954 (Executive L. 83d Cong., 2d Sess.) ; sub- 
mitted to the Senate November 15, 1954. 

Protocol to the North Atlantic treaty on the accession of 
the Federal Republic of Germany. Signed at Paris 
October 23, 1954 (Executive M, 83d Cong., 2d Sess.) ; 
submitted to the Senate November 15, 1954. 

January 24, 19SS 


Actions on Treaties Submitted 
During Earlier Congresses 

Internal iimal Labor Orgaiiiziition Convention (No. 74) 
concerning certification of able seamen. Adopted at 
Seattie June 2i), 1!)4C (Executive Z, 80th Cong., 1st 
Ses.s.) ; submitted to the Senate June 23, 1947; advice 
and consent to ratiUcation given by the Senate with two 
underslanilinss July 4, 1952; ratified by the President 
with two understandings February 17, 1953; ratifica- 
tion deposited April 9, 195;5 ; proclaimed by the President 
April 13, 19.")4 ; entered into force for the United States 
April 9, 1954. TIAS 2949. 

Convention on the international recognition of rights in 
aircraft. Ojiened for signature at Geneva June 19, 1948 
(Executive E, 81st Cong., 1st Sess. ) ; submitte<l to the 
Senate January 13, 1949 ; advice and consent to ratifica- 
tion given by tlie Senate August 17, 1949; ratified by the 
President August .'{0, 1949; ratification deposited Sep- 
tember 7, 1949; proclaimed by the President September 
30, 1953 ; entered into force September 17, 1953. TIAS 

Convention between the United States of America and 
Belgium for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes en 
income. Signed at Washington October 28, 1948 (Exec- 
utive I, 81st Cong., 1st Sess.) ; submitted to the Senate 
March 16, 1949; advice and con.sent to ratification given 
by the Senate July 9, 19.53; ratified by the President 
July 2.3, 1953 ; ratifications exchansred Septemlier 9, 
1953; proclaimed by the President September 23, 1953; 
entered into force September 9, 1953. TIAS 2833. 

Convention b<!tween the United States of America and 
Greece for the avoidance of doubli! taxation and the 
prevention of fiscal evasion with respect to taxes on the 
estates of deceased persons. Si^-'ned at Athens Febru- 
ary 20, 1950 (Executive K, 81st Cong., 2d Sess.) ; sub- 
mitted to the Senate April 17, 1950; advice and consent 
to ratification given by the Senate with a reservation 
September 17, 1951 ; ratified by the President with a 
reservation December 5, 1951; ratifications exchanged 
December 30, 1953 ; proclaimed by the President Janu- 
ary 15, 1954; entered into force DL-cember 30, 1953. 
TIAS 2901. 

(Convention between the United States of America and 
Greece for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
Income. Signed at Athens February 20, 1950 (Execu- 
tive L. 81st Con}.'., 2d Sess.) ; submitted to the Senate 
April 17, 19.50; advice and consent to ratificaticm given 
by the Senate with an understandiiiR September 17, 
1951; ratified by the I'resideiit with an understanding 
Decen)ber 5, 1951 ; ratifications exchan;,'ed December 30, 
1953; proclaimed by the President January 15, 1954; 
entered Into force December 30, 1953. TIAS 2902. 

Consular convention between the Ignited States of America 
and Ireland. Siirned at Dublin May 1, 1!I5() (Executive 
P, 81st ("iini;., 2d ; submitted to the Senate June 
7, 19,50; advice and con.sent to ratification given by the 
Senate June 13. 19.52; ratified l)y the President Juiie 26, 
19.52; ratifications exchanged May 13, 1954; proclaimed 
by the President June 12, 1954; entered into force June 
12, 19.54. TIAS 2984. 

Treaty of friendship, commerce, and navigation, with pro- 
tocol and exchange of notes, between the ITnited States 
of America and Israel. Signed at Washington Ausust 
2.3, 1951 (Executive U, 82d Cong., 1st Sess.) ; submitted 
to the .Senate October 18, 1951 ; advice and consent to 
ratification given by the Senate with a reservation July 
21, 19.53; ratified by the President with a reservation 
December 18, 1953; ratifications exchanged March 4, 


1954 ; proclaimed by the President May 6, 1954 ; entered 
into force April 3, 1954. TIAS 2948. 

Treaty of amity and economic relations, and related notes, 
between the United States of America and Ethiopia. 
Signed at Addis Ababa September 7, 1951 (Executive 
P, 82(1 Cong., 2d Sess. ) ; submitted to the Senate January 
14, 1952 ; advice and consent to ratification given by 
the Senate July 21, 1953; ratified by the President Au- 
gust 4, 1953 ; ratifications exchanged September 8, 1953 ; 
proclaimed by the President November 3, 1953 ; entered 
into force October 8, 1953. TIAS 2864. 

Agreement between the United States of America and 
Italy supplementing the treaty of friendship, commerce, 
and navigation of February 2, 1948. Signed at Wash- 
ington September 26, 1951 (Executive H, S2d Cong., 2d 
Sess.); submitted to the Senate January 29, 1952; 
adrice and consent to ratification given by the Senate 
with an understanding July 21, 1953. 

Treaty of friendship, commerce, and navigation, with pro- 
tocol and minutes of interpretation, between the United 
States of America and Denmark. Signed at Copen- 
hagen October 1, 1951 (Executive I, 82d Cong, 2d 
Sess.) ; submitted to the Senate January 29, 1952; 
advice and consent to ratification given by the Senate 
with a reservation July 21, 1953. 

Treaty of friendship, commerce, and navigation between 
the United States of America and Greece. Signed at 
Athens August 3, 1951 (ExecuUve J, 82d Cong., 2d 
Sess.) ; submitted to the Senate January 30, 1952; ad- 
vice and consent to ratification given by the Senate 
with a reservation July 21, 1953 ; ratified by the Presi- 
dent with a reservation June 24, 1954 ; ratifications 
exchanged September 13, 1954; proclaimed by the Presi- 
dent October IS, 1954; entered into force October 13, 
1954. TIAS 3057. 

Supplementary protocol to the consular convention of 
May 1, 1950, between the United States of America and 
Ireland. Signed at Dublin March 3, 1952 (Executive N, 
82d Cong., 2d Sess.); submitted to the Senate March 
28, 1952; advice and consent to ratification given by the 
Senate June 13, 1952 ; ratified by the President June 26. 
1952; ratifications exchanged May 13, 1954; proclaimed 
by the President June 12, 1954; entered into force ,Iune 
12, 1954. TIAS 2984. 

International convention for the high seas fisheries of 
the Noith Pacific Ocean, with annex and protocol. 
Signe<i at Tokyo May 9, 19.52 (Executive S, 82d Cong., 
2d Sess.) ; submitted to the Senate June 2, 1952; advice 
and consent to ratification given by the Senate .July 
4, 1952 ; ratified by the President July 30, 1952; ratifica- 
tions exchanged June 12, 19,53 ; proclaimed by the Presi- 
dent July 30, 1953; entered into force June 12, 1953. 
TIAS 2786. 

Agreement between the parties to the North Atlantic 
Treaty regarding the status of their forces. Signed at 
London June 1!l, 1951 ( Executive T, S2d Cong., 2d Sess.) ; 
submitted to the Senate June 16, 1952 ; advice and con- 
sent to ratification given by the Senate with a state- 
ment July 15, 1953: ratified by the President witli a 
statement July 24, 1953 : ratification deposited July 24, 
1953; proclaimed by the President October 27, 1953; I 
entered into force August 23, 19.53. TIAS 2846. 

Agreement on the status of the North Atlantic Treaty 
Organization, national representatives and international 
stafl". Done at Ottawa September 20, 1951 (Executive 
U, 82d Cong., 2d Sess.) ; submitted to the Senate June 
16, 1952 ; advice and consent to ratification given by the 
Senate July 15, 1953 ; ratified by the President July 24, 
1953; ratification deposited July 24, 1953; proclaimed , 
by the President June 7, 1954 ; entered into force May 
18, 1954. TIAS 2992. 

Department of State Bulletin 

Air Transport Services With India 

Press release 16 dated January 11 

Kepresentatives of the Government of India and 
the Government of the United States have con- 
cluded a series of recent conversations for tlie pur- 
pose of determining whether there was any basis 
for continuation of the 1946 agreement for air 
transport services. These conversations were car- 
ried on in a very friendly and cooperative spirit 
and in recognition of the value to both countries 
of uninterrupted air transport service between 
them. It was, however, not found possible in the 
time available at this stage to reconcile divergent 
points of view, and consequently the agreement 
will terminate January 14, 1955, in accordance 
with its terms and the termination notice given 
by the Government of India dated January 14, 
1954. The Government of India has issued tem- 
porary permits authorizing continued operation 
of two round trip flights weekly to and through 
India, both by Pan American and Trans World 
Airlines. Each company has, in the past, been 
operating three round trips weekly. PAA will 
serve either New Delhi or Calcutta on each flight, 
and TWA will serve Bombay on both flights. 

Further discussions will be held at an appro- 
priate time with a view to reaching an under- 
standing on the terms of a new air transport 

ects promoting economic development. Two- 
thirds of the total will be in the form of a grant, 
the remaining one-third being in the form of a 

The emergency commodities in this part of the 
program will include such items as industrial 
chemicals, drugs and medicines, nonf errous metals, 
unfinished iron and steel products, and sugar. The 
economic development projects will probably be 
in the fields of industry, natural resources, and 
agriculture. The rupees derived from the com- 
modity program will be used for the benefit of 

Pakistan has made tremendous efforts in its own 
behalf. It is clear, however, that increased eco- 
nomic assistance is urgently needed to help over- 
come shortages of consumer goods and industrial 
raw materials, and that economic development pro- 
grams must be increased. The new agreement is 
further evidence of the friendly interest of the 
people of the United States in the independence 
and security of the people of Pakistan and in the 
solution of their pressing economic problems. 

The long-term $20 million loan will be repaid in 
rupees under the terms of a separate agreement 
to be effected between the Govermnent of Pakistan 
and the Export-Import Bank of Washington. 

Copies of these agreements will be deposited 
with the Secretary-General of the United Nations. 

Economic Aid Agreement 
Signed at Karachi 

Press release 13 dated January 11 

An agreement between the United States and 
Pakistan was signed at Karachi on January 11 
covering a part of the U. S. $105 million economic 
aid program to Pakistan for the period ending 
June 30, 1955, which was announced during the 
recent visit of Prime Minister Mohammed AH to 
the United States.^ As a result of tliis agreement, 
the U. S. Government will allocate $60 million to 
Pakistan under the defense support chapter of the 
U. S. Mutual Security Act of 1954 (Public Law 

Pursuant to the agreement, $40 million will be 
made available for the procurement of emergency 
commodities for Pakistan and $20 million for proj- 

* Btjlletin of Nov. 1, 1954, p. 639. 

Current Treaty Actions 



Universal copyright convention and three related pro- 
tocols. Done at Geneva, September 6, 1952.' 
Accession deposiled: Costa Kica, December 7, 1954. 


Air transport services agreement. Signed at New Delhi, 
November 14, 1946. Entered into force, November 14, 
1946. TIAS 1586. 

Terminated: Jnnuary 14, 1955 (by notifiention given 
January 14, 1954, by India to the United States pur- 
suant to Article X (e) of the agreement). 


Agreement establishing an air defense technical center 
with cost reimbursement contract attached. Effected 
by exchange of notes at The Hague, December 14, 1954. 
Enters into force upon approval by the Netherlands 


Agreement amending the agreement of August 23, 1954 
(TIAS 3052), relating to emergency flood assistance. 

' Not In force. 

January 24, 1955 


EITiKtiil l>v cxchMiiKP of iKitps at WiishiiiKton, Xovem- 
iMT 20 mid DiKcinhcr 1<>. VXA. Knterod into force 
December 16, 1954. 


Arrangement relating to certificates of airworthiness for 
liiiix>rted aircraft. Effected by exchange of notes at 
Stockholm, December 22, li>54. Entered into force 
DiK'cinbtT 22. 19.''i4. 

Arrangement for the reciprocal recognition of certificates 
of airwortliiness for imported aircraft. Effected by 
exchange of notes at Washington, September 8 and 9, 
1933. 48 Stat. 1805. 

Tirminntrd : Opcemhpr 22. 10.54 (by the afrreement of 
De<'ember 22, 1954, relating to certificates of airworthi- 
ness for imported aircraft). 


Recent Releases 

For Kale hii the Superintendent of nociiinents, U. 8. Oov- 
emmntt I'rintinn O/pre, Wii.ihinijlon 2.5. D. C. Address 
requests direct to the Su;tirinten(ient of Documents, esr- 
ccpt in the ease of free fmhiiralivns, which man he obtained 
from the Dcfxirtmvnt of State. 

Highways, Boyd-Roosevelt Highway in Panama — Extend- 
ing Modns Vivendi Agreement of September 14, 1950. 

TIAS 2874. Pub. 5.'«0. 4 pp. Sjf. 

Mo<lus Vivendi Agreement between the United States and 
Panama. Exchange of notes — Signed at I'anaiiia August 
11, and September 14 and 21, 10.5;{. Entered into force 
September 21, lOf).'} ; operative retroactively September 
14. lO.'iS. 

Defense, Haines-Fairbanks Oil Pipeline Installation. 
TIAS 287.''). Pub. 5331. 14 pp. 10«(. 

Agreement between the United States and Canada. Ex- 
change of notes — Signed at Ottawa June 30, 1953. En- 
tered into force June 30, 1953. 

Technical Cooperation, Training Grants to Netherlands 
Nationals. TIAS 2S77. Pub. .'')338. 5 pp. 5<f. 

Agreement between the United States and the Nether- 
lands. Exchange of notes.— Signetl at Washington Oe- 
tol)er 23 and 27, 1953. Entered into force October 27, 

Amami Islands, Relinquishment by United States of 
America to Japan Under Article III of Treaty of Peace. 

TIAS 2895. Pub. .5421. 28 pp. 15(?. 

AirnH-nient, with annex, exchange of notes and official 
minutes between the United States and Japan — Signed at 

Tokyo December 24, 1953. Entered into force December 
25, 1953. 

Friendship, Commerce and Navigation. TIAS 2948. 
Pub. 5490. 55 pp. 20^*. 

Treaty, with protocol and exchange of notes between the 
United States and Israel — Signed at Washington August 
2.3, 1951. Entered Into force April 3, 1954. 

Military Assistance. TIAS 2975. Pub. 5530. 8 pp. 10<!. 

Agreement between the United States and Honduras — 
Signed at Tegucigalpa May 20, 1954. Entered into force 
May 20, 19.54. 

Air Transport Services. TIAS 3013. Pub. 5623. 10 pp. 

Agreement between the United States and Sweden, amend- 
ing agreement of December 16, 1944. Exchange of notes — 
Signed at Washington August 6, 1954. Entered into force 
August 6, 1954. 

Check List of Department of State 

Press Releases: January 10-16 


may be obtained from the News Divi- 

sion, Department of State, Washington 25, D.C. 

Press release issued prior to January 10 which 

appears In 

this Issue of the Bulletin is No. 9 of 

January 7. 

No. Date 


11 1/11 

Dulles: The Peace We Seek. 

12 1/11 

Aide memoire to U. S. S. R. on defensive 

character of NATO. 

13 1/11 

Aid agreement with Pakistan. 

•14 1/11 

Henderson nomination. 

•15 1/11 

Bonbright nomination. 

16 1/11 

Talks with India on air transport 

•17 1/11 

Hendrlckson nomination. 

•18 1/11 

Nixon's Caribbean itinerary. 

•19 1/12 

Educational exchange. 

20 1/12 

Luce: Italy in 1955. 

21 1/12 

NATO pro<luction conference. 

22 1/12 

Observation planes for OAS. 

23 1/13 

Robertson : Partnership in Free World. 

•24 1/13 

Dulles : birthday message to Schweit- 


t-'5 1/15 

Luce: Poor Richard Club, Philadelphia. 

* Not printed. 

t Held for a later issue of the Bulletin. 


Department of State Bulletin 

January 24, 1955 


Vol. XXXII, No. 813 

American Principles. Th« Peace We Seek (Dulles) , . 123 
American Repoblics. Observation Planes Made Available 

to OAS Investigating Committee (text of resolution) . 131 

Asia. The Growing Partnership Among Free Nations 

(Robertson) .... l .... 126 

China. Mutual Defense Treaty With Republic of China 
Transmitted to Senate (text of letter, report, and ex- 
change of notes) 150 

China, Communist. U.N. Secretary-General's Return From 

Mission to Red China (Eisenhower) 122 

Communism. The Growing Partnership Among Free Na- 
tions (Robertson) 126 

Congress, The 

Current Legislation , 153 

Further Developing the Foreign Economic Policy of the 

United States (message from the President) . y . 119 

Mutual Defense Treaty With Republic of China Trans- 
mitted to Senate (test of letter, report, and exchange 
of notes) 150 

Costa Rica. Observation Planes Made Available to OAS 

investigating Committee (text of resolution) . . . 131 

Economic Affairs 

Air Transport Services With India 157 

Economic Aid Agreement Signed at Karachi 157 

Further Developing the Foreign Economic Policy of the 
United States (message from the President to the 
Congress) 119 

OEEC Publishes Report on U.S. Investment in Europe . 136 

Report of the Validation Board for German Dollar Bonds, 

September 1. 1953-August 31, 1954 139 

iReport on Including Escape Clauses in Existing Trade 

Agreements (Eisenhower) ,. . 153 

Wheat and Cotton Agreement With Xugoslavia .... 138 

Europe. OEEC Publishes Report on U.S. Investment in 

Europe 136 

Germany, Federal Republic of 

New Tear's Greeting to the People of Germany (Conant) . 137 

Report of the Validation Board for German Dollar Bonds, 

September 1, 1953-August 31, 1954 139 

India. Air Transport Services With India 167 

■ibiternational Organizations and Meetings. NATO Confer- 
ence To Discuss Problems of Defense Production . . 125 

Italy. Italy in 1955 (Luce) 132 

Military Affairs 

NATO Conference To Discuss Problems of Defense Pro- 
duction 125 

U.S. Replies to Soviet Query on Remarlts of General 

Stevenson (texts of notes) 137 

Mutual Security. The Growing Partnership Among Free 

Nations (Robertson) 126 

North Atlantic Treaty Organization 

NATO Conference To Discuss Problems of Defense Pro- 
duction 125 

U.S. Replies to Soviet Query on Remarks of General Ste- 
venson (texts of notes) 137 

Pakistan. Economic Aid Agreement Signed at Karachi . 157 

Presidential Documents 

Further Developing the Foreign Economic Policy of the 

United States (message to Congress) > 119 

Mutual Defense Treaty With Republic of China Trans- 
mitted to Senate (text of letter, report, and exchange 
of notes) 130 

Report on Including Escape Clauses In Existing Trade 

Agreements ,.,... 153 

D.N. Secretary-General's Return From Mission to Red 

China , . 122 

Publications. Recent Releases . 158 

Treaty Information 

Current Treaty Actions 157 

Mutual Defense Treaty With Republic of China Trans- 
imitted to Senate (text of letter, report, and exchange 

of notes) 150 

Summary of Treaty Actions by 83d Congress 154 

United Nations. U.N. Secretary-General's Return From 

Mission to Red China (Eisenhower) 122 

U.S.S.R. U.S. Replies to Soviet Query on Remarks of 

General Stevenson (texts of notes) 137 

Yugoslavia. Wheat and Cotton Agreement With Yugo- 
slavia w 138 

Name Index 

Conant, James B 137 

Dulles, Secretary . » , 123, 150 

Eisenhower, President 119, 122, 150, 153 

Hartman, Douglas W 139 

Luce, Clare Boothe 132 

Reusch, Walther 140 

Robertson, Walter S 126 

Yeh, George K. C 152 


the I 




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1938, Volume III, The Far East 

Documents in tliis volume deal with the undeclared war 
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The deepening of the international crisis caused by the conflict 
in China and the danger of general war among the Great 
Powers form the principal subjects of this volume of papers 
from State Department files. The prominent role played by 
the Soviet Union and by Chinese Communists in developing the 
situation is pictured in many documents now published for 
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Significant reports on the chance of mediation, on the possi- 
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I. XXXJ/, No. 814 
Uanuary 31, 1955 


FREE WORLD • Excerpts from the President's Budget 
Message 163 


Statement by Secretary Dulles 171 


Clare Boothe Luce •• • 1'* 

THE NEW GERMANY • by Cecil B. Lyon 183 


For index see inside back cover 

rupcriaton'i-nt of Documents 

MAR 1 - 1955 

2//ie Qlefut^l^ent c/ 9iate DllilGllil 

Vol. XXXII, No. 814 • Publication 5741 
January 31, 1955 

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Note: Contents of this puMlcatlon are not 
copyrlnhte"! and Items contained herein may 
be reprinted. Citation of the I)«part»i«nt 
or SrtTi BULLCTIN as the source will be 

The Department of State BULLETIN, 
a voeekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Government icith information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BVLLETIS includes 
selected press releases on foreign pol- 
icy, issued by the White House and 
the Department, and statements and 
addresses made by tlie President and 
by the Secretary of State and other 
officers of the Department, as xcell as 
special articles on various phases of 
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tions of the Department. Informa- 
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ichich tlie United States is or may 
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Publications of the Department, as 
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Promoting the Security of tlie United States 
and the Free World 



To the Congress of the United States : 

I am transmitting to you today the Budget of 
the United States Government for the fiscal year 
1956, which begins July 1, 1955. 

The first part of this budget message sum- 
marizes the budget totals and highlights our 
policies and plans for next year, particularly as 
related to the fiscal situation. The second part 
presents summary tables and also contains my 
budget recommendations for each major Govern- 
ment activity. 

The fiscal and budget story during this past 
year centers around the fact that we successfully 
made the adjustment from a wartime to a peace- 
time type of economy, a truly significant achieve- 
ment. Aided by a proper fiscal policy, the 
inevitable dislocations of this adjustment, while 
difficult for some, have not been serious on the 
^\ hole. Our present growing prosperity has solid 
foundations, free from the artificial stimulations 
of war or inflation. However, the peace in which 
we live is an insecure peace. We must be con- 
stantly on the alert. Along with the other free 
nations of the world we must continue to 
strengthen our defenses. At the same time to 
remain strong for what will apparently be a long 
period of uncertainty ahead, we must also pro- 
gressively increase our prosperity and enhance our 

The 1956 budget is based on this outlook. Total 
expenditures will be reduced. However, I am rec- 

'H. Due. 16, transmitted on Jan. 17: reprinted from 
Cony. Rec. of Jan. 17, p. 313 ff. The message, together 
with a summary of the budget, is for sale by the Super- 
intendent of Documents, U. S. Government Printing Office, 
Washington 25, D. C, at $1..50 a copy. 

ommending somewhat increased expenditures in 
particular areas important to human well-being. 
Budget expenditures for the fiscal year 195() are 
now estimated at 62.4 billion dollars, 1.1 billion 
dollars less than for the current year. All parts 
of the administration will continue to work to- 
ward further reductions during the year by elimi- 
nating nonessentials and by doing necessary things 
more efficiently. 

"We must maintain expenditures at the high 
level needed to guard our national security. Our 
economy is strong and prosperous but we should 
not dissipate our economic strength through in- 
flationary deficits. I have therefore recommended 
to the Congress extension for 1 year of present 
excise and corporate income tax rates whicli are 
scheduled for reduction on April 1, 1955, imder 
present law. If this is done, and employment 
and production increase as currently anticipated, 
we can expect budget receipts to rise 1 billion 
dollars over 1955, to a total of 60 billion dollars 
in the fiscal year 1956. 

On the basis of these estimates of expenditures 
and receipts, the deficit will be reduced from the 
presently estimated 4.5 billion dollars in the fiscal 
year 1955 to an estimated 2.4 billion dollars in 
1956. Thus we continue to progress toward a 
balanced budget. 

Budget Policies 

Three broad considerations of national policy 
have guided me in framing the budget for the 
fiscal year 1956. 

First, we must defend our priceless heritage of 
political liberty and personal freedom against 
attack from without and undermining from 
within. Our efforts to date have helped bring 

January 31, J 955 


about encouraging results — cessation of fighting, 
new and stronger alliances, and some lessening of 
tensions. The growing strength of the United 
States and its friends is a l<ey factor in the im- 
proved outlook for peace. We must continue to 
build tliis strength. We must at the same time 
preserv'e our liberty at home by fostering the tra- 
ditional initiative of the American people. We 
will increase the scope of private activity by con- 
tinuing to take Government out of those things 
which the people can do better for themselves, 
and by undertaking on a partnership basis, wher- 
ever possible, those things for which Government 
action is necessary. Thus, people will be able to 
keep more of their earnings to use as they wish. 

Second, the Government must do its part to 
advance human welfare and encourage economic 
growth with constructive actions, but only where 
our people cannot take the necessary actions for 
themselves. As far as possible, these steps should 
be taken in partnership with State and local gov- 
ernment and private enterprise. We must do our 
part to provide the environment for our free enter- 
prise system to keep employment high, to create 
new jobs, and to raise the standard of living. We 
must broaden the opportunity for individuals to 
contribute to the growth of our economy and 
enjoy the fruits of its productivity. 

Third, wo must maintain financial strength. 
Preserving the value of the dollar is a matter of 
vital concern to each of us. Surely no one would 
advocate a special tax on the widows and orphans, 
pensioners, and working people with fixed in- 
comes. Yet inflation acts like a tax which hits 
these groups hardest. This administration has 
made a stable dollar and economy in Government 
operations positive policies from the top down. 
Expenditure reductions, together with a judicious 
tax program, effective monetary policy, and care- 
ful management of the public debt, will help to 
assure a stable cost-of-living — continuing our 
achievement of the past 2 years. 

Budget Expenditures 

Major ruitional Hecurity. — Expenditures for 
major national security programs in the fiscal year 
1950 are estimated at 40.5 billion dollars, G5 per- 
cent of total budget expenditures. This amount 

includes the cost of new legislation. I am pro- 
posing to establish an effective military reserve 
system and strengthen the career service. This 
budget provides for more expenditures by the De- 
partment of Defense for air power than ever be- 
fore in peacetime history. New weapons for 
defensive and retaliatory action are being devel- 
oped and produced in increasing quantities. High 
priority is being given to strengtliening our conti- 
nental defense system. Since military supplies 
are not being consumed in combat, the bulk of the 
military materiel being produced by our factories 
is adding to our capacity to defend ourselves. Our 
defense expenditures are now bringing about a 
steadily growing strength. Never in our peace- 
time history have we been as well prepared to 
defend ourselves as we are now. 

We will deliver about the same amount of mili- 
tary equipment to friendly nations as in 1954 and 
1955. New atomic energy plants will be placed in 
operation and more than in any previous year will 
be spent for peaceful applications of atomic 
energy. The dollar value of our stockpile of stra- 
tegic materials is expected to reach 78 percent of 
the minimum objective, compared with 58 percent 
in 1954. 

International affairs and finance. — Our interna- 
tional programs are closely related to national 
security. The conduct of our foreign affairs is 
crucial in preserving peace. We have materially 
contributed to the strengthening of friendly na- 
tions through the economic aspects of the mutual 
security program. Continuation of such assist- 
ance is urgently needed for some countries. Net 
expenditures for international affairs and finance 
are estimated to be 1.3 billion dollars, 88 million 
dollars lower than in the fiscal year 1955. 


This second part of the budget message starts 
with three summary tables. Folloioing these tables 
is an introduction containing {!) general analyses 
of budget expenditures from two different view- 
points, {2) a summary of transactions of major 
trust funds., and (3) a summary of receipts from 
and payments to the public. 

The remainder of the message discusses the nine 
major groups of Government programs. 


Department of Slate Bullelin 

Major National Security 

Development and control of atomic energy. — It 
is our purpose, working in concert with other 
nations, to banish the tlireat of atomic warfare 
which now confronts the world. Progress is being 
made toward establishing an international agency 
for cooperation in developing the peaceful uses of 
atomic energy, as I proposed to the United Nations 
on December 8, 1953.^ The budget of the Atomic 
Energy Commission for the fiscal year 1956 pro- 
rides for greater expenditures than ever before on 
projects to develop peaceful applications of atomic 
energy. We shall continue unabated our efforts 
to assure that this great force will be used, not for 
war, but for the well-being of all mankind. Until 
such assurance can be achieved, however, we have 
no alternative but to strengthen further our most 
affective deterrent to armed aggression — the power 
jf our nuclear weapons stockpile. 

Despite a growing program, I am recommend- 
ing for 1956 only a slight increase over 1955 in new 
luthority to incur obligations because of the avail- 
ibility of large unobligated balances, due partly to 
savings in construction costs. Total expenditures 
n the fiscal year 1956 are estimated at 2 billion 
ioUars, 50 million dollars less than in 1955. 

Operating expenditures will rise in the fiscal 
rear 1956 to the highest rate yet attained. They 
ivill increase from 1.2 billion dollars in 1955 to 1.5 
)illion dollars in 1956 principally because of an 
ixpected higher level of procurement of raw 
iranium ores and concentrates and because of 
P'eater production at the Commission's plants as 
lew facilities are completed and placed in opera- 
ion. The estimates assume continuing reductions 
n unit production costs. 

Capital expenditures in the fiscal year 1956 will 
Irop considerably as the large new production 
)lants authorized in prior years approach comple- 
ion. Recommended new construction will in- 
lude: (1) plant improvements and other facilities 
increase the efficiency and capacity of the pro- 
.uction complex, (2) certain weapons research 
acilities, (3) a medical research center, (4) an 
aternational training school in reactor technology, 
nd (5) developmental atomic reactor projects. 

The national effort to develop industrial atomic 
ower for peacetime uses will go forward with 
icreased vigor. The Atomic Energy Act of 1954 

' Bulletin of Dee. 21, 1953, p. 847. 

makes possible substantial private activity and 
investment in the constructive applications of 
atomic energy. Construction of one large atomic 
powerplant jointly financed by the Government 
and industry is already underway. As I stated in 
my message of February 17, 1954, to the Congress,^ 
"It is essential that this program so proceed that 
this new industry will develop self-reliance and 
self-sufficiency." Accordingly, it is expected that 
industry will fuiance an increasingly larger share 
of the total national effort in developing power 
reactor technology. However, to speed progress 
in getting the new technology established, the 
Atomic Energy Commission in 1956 will expand 
substantially its program to develop industrial 
power reactors. Construction of several experi- 
mental reactors will be started in 1955 and 1956. 
Of these, one of the most significant is a power 
breeder, designed to produce more fissionable ma- 
terial than it consumes. Nearly 15 million dollars 
is included in the budget for this project. 

Effective progress in military propulsion reac- 
tors will continue. The launching in 1954 of the 
first atomic submarine, the U. S. S. Nautilus, will 
be followed by the launching in 1955 of the U. S. S. 
Sea Wolf, an atomic submarine of different design. 
In addition, two atomic-powered attack type sub- 
marines have been financed by Department of De- 
fense appropriations in the fiscal year 1955. My 
recommendations for the Department for 1956 
include additional submarines of this type. In 
1956, development work will proceed on improved 
types of submarine reactors, and on a reactor to 
power larger naval vessels. The Atomic Energy 
Commission and the Department of Defense will 
expand and accelerate research on atomic-powered 
aircraft, and will continue development work on 
small transportable power reactors for military 

The basic — as distinct from applied — research 
which is fundamental to progress in all aspects of 
nuclear energy will be pursued energetically and 
will entail somewhat higher expenditures in 1956, 
both in the Commission's own laboratories and 
through support of research in universities and 
other institutions. 

I again recommend that the Congress approve 
legislation to allow the residents of Oak Ridge, 
Tennessee, and Richland, Washington, to pm-chase 
their homes and establish self-government, thus 

' ma., Mar. 1, 1954, p. 303. 

anuary 31, 7955 


tiikinjr the Foderiil (JovtMiinu'iit out of the business 
of owning and governing these conmuuiities. 

Stockpiling of strategic and cHtical materials. — 
A new long-term stockpile level has been estab- 
lished to provide an additional nieasme of security 
over and above the nuniunnn goals. Procurement 
of the additional minerals will generally be limited 
to instances where purchases at favorable prices 
will serve both to meet the long-term stockpile 
objectives and to maintain essential domestic pro- 
duction, as in the case of lead and zinc in the past 
(■> months. 

Preliminary reviews of .Mi minerals indicate 
that the new policy may eventually increase the in- 
ventories of materials by ;3.;J billion dollars above 
the <).5 billion dollai-s of mininnnn objectives. 
By the end of the fiscal year 195(;, about S.l billion 
dollars of materials within the minimum objec- 
tives, and an additional 1.2 billion dollars toward 
tlie long-term objectives will be in inventory, com- 
pare<l with June 1054 levels of :5.S billion dollars 
and 700 million dollars, respectively. In consid- 
erable measure, this progress is nnide possible 
under the Defense Production Act, discussed in 
the commerce and manpower section of this 

Mutual senirifi/ program. — Military assistance 
and dire^-t forces .support help other free nations 
to train and ecpiii) tlie modern armed forces which 
are necessary for our se^-urity as well as their own. 
Such assistance is an int*gial part of our own na- 
tional security program for it helps to create, in 
crucial areas of the free world, es.sential military 
strength which bolsters our own forces. Because 
our allies generally i)rovide the major portion of 
the costs of nuiintaining the forces, this strength 
is being created at a relatively low cost to the 
United States taxpayer. 

The military assistance and direct forces sup- 
port programs are two parts of an integrated 
mutual security program which in its entirety is 
designed to provide other nations with the margin 
of outside a.ssistance which they need to develop 
and maintain their jjolitical, military, and eco- 
i\omic strength, which is in our interest. Other 
parts of this program are discussed in the inter- 
national affairs and linance .section of this mes- 
sage. I shall submit to the Congi-ess proposals for 
neces,sary changes in the Mutual Security Act. will include my specific reijuests for author- 
iz:iiinii of api)ropriations for the fiscal year 1956. 

Total expenditures for nuitual security are esti- 
mated at 4.7 billion dollars in the fiscal year 1956, 
including the provisions for a program in Asia. 
Keconnnended new authority to incur obligations 
is 3.5 billion dollars. 


(Fiscal years. In mllUons) 

Military assistance: 
Present programs. . - 
Proposed leclslation. 
Direct forces support : 
Present proRrams. . . 
ProiM)S*'a legislation. 

Presi'nt programs 

Propost'd legislation... 

Present programs. 
Proposed legisla- 




new obli- 
ity for 


1 Compares with new oblleatlonal authority ol 4,725 mllUon dollars 
in 1964 and 2,781 million dollars in 1955. 

Organization for mutual security operations. — 
Tiie organizational arrangements to carry on the 
mutual security program beyond the present fiscal. 
year are now under careful study and I shall m 
the near future present to the Congi-ess my recom- 
mendations regarding them. 

Military a--<><isfance. — The mutual military as-f 
sistaiice proposed for the fiscal year 1956 will 
further help our allies to complete equipping and 
training the equivalent of more than ISO division- 
.">.") I combat vessels, 278 air squadrons, and relateil 
.supporting units. Our assistance goes only fm 
forces determined to be essential by our Join! 
Chiefs of Staff. It provides only the critical mar 
gin of training and equipment which the countrie 
cannot provide for themselves. During the pa>i 
5 years we have delivered over 6,000 aiiplam- 
almost 000 naval vessels of all types, 36.000 tank: 
ami comlxit vehicles, nearly 200,000 transport ve 
hides, billions of rounds of ammunition, and man} 
other items. Furthermore, specialized trainiiu 
courses have l)een conducted for t)flicers and tech 
nicians from 32 countries. 

Expenditures for military assistance in tlie fiscn 
year 1956 are estimated at 3.1 billion dollars ;i 


Department of Slate Bulletii 

compared with 3.6 billion dollars in the fiscal year 
1954, and an estimated 2.7 billion dollars in 1955. 
The decline in estimated expenditures from 1954 
to 1955, and the subsequent increase projected for 
1956, do not accurately reflect the probable rates 
of delivery of equipment to our allies during 1956. 
Actual deliveries are expected to continue in the 
fiscal years 1955 and 1956 at around the 3-billion 
dollar level which was attained in the fiscal year 
1954. The fluctuations in expenditure estimates 
are due to a change in the method of financing 
wlierein the Department of Defense finances the 
production of common type materiel, pending de- 
livery to the mutual security program and subse- 
quent reimbursement of Department of Defense 

Much of our mutual military assistance con- 
tinues to strengthen our allies in the North At- 
lantic Treaty Organization, and I hope that we 
may soon begin furnishing certain items of mili- 
tary equipment which will be needed by the new 
German forces. To the extent that this materiel 
cannot be financed by the Federal Republic of 
Germany from its own resources, it will be 
financed from appropriations made for the mutual 
security program. The continuing gi-owth of eco- 
nomic strength in Europe and completion of the 
financing of much of the capital equipment which 
was required for the initial rapid military buildup 
will make it possible to reduce military assistance 
for this area in the immediate future below the 
level of the last few years. 

The military assistance program proposed for 
the fiscal year 1956 will include aid to Korea 
which, in previous years, was financed from reg- 
ular Department of Defense appropriations. We 
are also proposing the continuation of assistance 
designed to strengthen further the defenses of 
Formosa, Japan, and certain other countries in 
Asia which are presently receiving military 

Expenditures in the fiscal year 1956 will be 
largely from appropriations made in previous 
years. At the same time, however, new authority 
of 1.4 billion dollars, which I am recommending, 
is needed to incur obligations in the fiscal year 
1956 to finance in advance certain new require- 
ments such as the Korean program. 

Direct forces svpporf. — The present Mutual Se- 
curity Act distinguishes between militai'y equip- 
ment and those supporting items which are nec- 
essary to make the soldiers and weapons effective. 

January 37, J 955 

These sui)porting items, commonly referred to as 
direct forces support, include gasoline, tires, uni- 
forms, medicines, rations, and similar items which 
all military forces consume every day. 

For the fiscal year 1956 I propose that direct 
forces supi)ort be provided to only a few selected 
countries. These countries, primarily in Asia, are 
ones where our mutual security requires the main- 
tenance of active forces larger than those which 
these countries could support from their own re- 
sources. In the fiscal year 1956 direct forces sup- 
port for the armed forces of the Republic of Ko- 
rea, which was formerly provided for in th© 
Department of Defense budget, will be covered 
for the first time by the mutual security program. 

Direct forces support will continue to be a sig- 
nificant part of the mutual security program for 
so long as the security of the free world requires 
that large military forces be maintained in Asia 
and the Near East. I reconunend 630 million dol- 
lars of new obligational authority under proposed 
legislation for this purpose. Expenditures for 
this program from existing appropriations and 
from the proposed legislation are estimated at 
600 million dollars in the fiscal year 1956, as com- 
pared with 550 million dollars in the fiscal year 

International Affairs and Finance 

During the past year the free world, despite 
some setbacks, has made heartening progress in 
building the strength and unity which are so 
important to our security. In this hemisphere, in 
Europe, Asia, and Africa, the free nations acted 
together to strengthen their defenses against in- 
ternational communism, to widen economic coop- 
eration, and to .settle long standing disputes which 
have undermined free world unity. In these de- 
velopments the United States has played a vital 

My program for the coming year is designed to 
consolidate these gains and to make further prog- 
ress. Particular emphasis will be laid on further 
strengtlieuing the foreign service organization of 
the Department of State which carries the burden 
of foreign policy leadership and negotiations. 
We are likewise placing emphasis on revision of 
our several international programs to give appro- 
priate attention to the important trouble spots 
around the world today. 

My budget recommendations for international 
affairs and finance reflect a coordinated plan for 


I Fiscal years. Is miUiom) 

Prognm or sgtDcy 

Oroaa expenditnns: 

EooDomic and Mchnlml deTelopment: 
Inienutional investment activities: 

International Finance Corporation (proposed legislation) 

Export-Import Bank (including Reconstruction Finance Corporation liquidation). 

Investment guaranties 

Mutual security program (nonmilitary) : 

Defense support and development assistance 

Technical cooperation 

Refugee and other aid (contributions to international agencies) 

Proposed legislation 

Civn aaalstanoe programs. Department of Defense 

Emergency oommoalty assistance, Department of Agricnltme.. 

Other assistance ,--.... — - — - 

Other refugee activities (Department of State) — 

Foreign information and exchange activities: 

Lnited States Information Agency - 

Department of Stale 

Emergency fmid for international allairs 

Conduct of foreign allairs (Department of State and other) 


Deduct app.icable receipts: 

Export-Import Bank. 

Reconstruction Finance Corporation 

Investment guaranties 

Commodity Credit Cori>oratlon 

Net budget expenditures 

new obli- 
for 19% 

> Appropriation to reimburse the Commodity Credit Corporation for commodity assistance provided in previous years. 

> Compares with new obligational authority of $1,26S miUion in 1954 and $1,585 million in 1955. 

the conduct of foreign affairs, for the expansion of 
trade and investment, for mutual security eco- 
nomic assistance, and for foreign information. 
Total net budget expenditures for the fiscal year 
1956 are estimated at 1.3 billion dollars, as com- 
pared with 1.4 billion dollars for the current year. 
Recommended new authority to incur obliga- 
tions in the fiscal year 1956 amounts to 1.9 billion 
dollars, 291 million dollars more than for 1955. 
Major items of this increase in new obligational 
authority result from increased emphasis on de- 
fense support and development assistance in Asia 
and reimbursement of the Commodity Credit Cor- 
poration for emergency assistance in the form of 
commodities furnished in previous years. 

International investment activities. — In my 
recent special message on foreign economic pol- 
icy,* I made recommendations which will enable 
us to expand foreign trade and investment. As a 
further step in providing capital to underde- 
veloped areas through stimulating private invest- 
ment, the United States is participating with other 
members of the International Bank for Recon- 
struction and Development in working out pro- 

' Ibid.. Jan. 1:4. 1055. p. 110. 

posals for an International Finance Corporation. 
Such a corporation, although it could not purchase 
stock, could provide venture capital by making 
special types of loans without government guaran- 
ties to private enterprises in less developed coun- 
tries. This budget includes 35 million dollars as 
the United States' share of the corporation's cap- 
ital of 100 million dollars. 

Moreover, in keeping with legislation approved 
last year, the Export-Import Bank estimates an 
increase in direct loans and guaranties of private 
loans from 460 million dollars in the fiscal year 
1955 to 665 million dollars in 1956. It is expected 
that a significant part of this increase will consist 
of guaranties of private loans which are not in- 
cluded in gross budget expenditures. New direct 
loans are expected to be authorized in the amount 
of 403 million dollars. The collections on old 
loans, including lend-lease and postwar recon- 
struction credits in Europe, will exceed disburse- 
ments against new direct loans, so that a net 
receipt of 90 million dollars to the Treasury is 
estimated in 1956. 

Defense support and development assistance. — 
We anticipate that the trade and investment poli- 
cies outlined above, and the marked advance in 

Department of State Bulletin 

jconomic strength of many foreign countries over 
:he past 2 years, will increasingly enable us to 
confine direct Government assistance for defense 
support and economic development abroad gen- 
erally to two types of situations, both of which 
ire related intimately to our own future security. 

In the first place, we will find it necessary for 
;ome time to provide defense support to certain 
■x)untries which have undertaken a military effort 
)eyond the capacity of their own economies to 
;upport. This defense support includes consmnp- 
ion goods and capital equipment to support the 
general economy, as contrasted with direct forces 
;upport which provides assistance to the military 
'orces of the country. In the second place, our 
lational interest will require direct assistance to 
•ertain less developed countries where a rate of 
conomic progress which would be impossible 
vithout such assistance is essential to their becom- 
"ng and remaining strong and healthy members 
if the community of free nations capable of re- 
isting Communist penetration and subversion. 

Employment, production, and foreign exchange 
•eserves in free European countries are generally 
ncreasing. Most of these countries can now 
trengthen their military establisliments and at 
he same time improve their living standards with- 
lut further United States defense support. In the 
iscal year 1955, defense support has been limited 
o very few countries, and a similar situation is 
ixpected to prevail in 1956. 

Latin America, an area with which we have 
veU-established trade and investment relations, 
las a great need for capital for economic develop- 
nent. Xevertheless, if Latin American countries 
"ollow a policy of encouraging private investment, 
iomestic and foreign, they should be able to con- 
tinue to raise the capital needed for further eco- 
lomic growth. In those cases in which private 
)r International Bank resources are not available 
)r not appropriate for financing soimd projects, 
-he Export-Import Bank will welcome applica- 
ions for loans. The new International Finance 
Corporation, when organized, can also help pro- 
'ride capital. Grants in Latin America have been 
lecessary only in special situations such as in 
Bolivia and Guatemala. 

In Asia, active warfare has only recently ceased 
md the free countries of this continent continue 
X) face the threat of Communist subversion and 
external aggression. "We therefore have been fur- 
lishing and propose to continue to furnish de- 

fense support to several countries including Korea, 
Formosa, Vietnam, Laos, and Cambodia. Some 
assistance in economic development has been ex- 
tended in India. 

LTnless such support is provided, we may expect 
economic deterioration and dangerous reductions 
in the military defenses of the free world. More- 
over, without such assistance, these countries, most 
of which border on Russia and Communist China, 
will not achieve the economic progress which is 
necessary to meet the threat of Communist sub- 
version. The loss of northern Vietnam makes this 
support more imperative than ever. 

In the Middle East and Africa, we have pro- 
vided some grant and loan assistance to promote 
economic development and political stability, and 
will request funds to continue this type of assist- 
ance in the fiscal year 1956. This assistance has 
gone to Iran, Israel, Lebanon, Jordan, Egypt, and 

My budget proposals for the mutual security 
program were developed on the assumption that 
all requirements for that program will be met 
from appropriations made for that purpose. 
Therefore if it becomes desirable to utilize foreign 
currencies accruing from sales of surplus agricul- 
tural commodities made under the Agricultural 
Trade Development and Assistance Act for mutual 
security purposes, mutual security appropriations 
will be used to reimburse the Commodity Credit 
Corporation for currencies so utilized. 

Technical cooperation. — Over recent years, 
technical cooperation has become a continuing 
part of L'nited States policy toward the rest of 
the world. American experts help the people in 
foreign countries, and foreign technicians come 
to the United States to observe our methods. As 
a result, millions of people are learning how to 
produce more food, to improve health and educa- 
tional standards, and to operate modern industries 
more effectively. Agreements for teclinical co- 
operation are in effect in 68 countries and terri- 
tories in Latin America, Asia, the Near East, and 

In addition to these bilateral efforts, we have 
contributed to meeting the total cost of the United 
Xations technical assistance program, for which 
experts and financial contributions come from 
many nations. I am proposing new obligational 
authority to cover the total proposed contributions 
of the United States to this program for both 
calendar years 1955 and 1956. 

'onoory 3?, J 955 


Refugee and other foreign relief. — The 1953 
Refupw Kelii'f Act provides for the admission 
of :il4.0(>0 people beyond rej^lar immigration 
quotas before December 31, 1956. Approximately 
17.0()0 visius liave been planted to date. Sufficient 
propress has been made on conchidinp agreements 
witli other countries, organizing staff abroad, and 
completing arrangements with voluntary agencies 
in the United States to justify the expectation that 
the program can be comi)leted in accordance with 
the provisions of tlie act. To accomplish this, I 
recommend an increase for tlie Department of 
State appropriation for the fiscal year 195(), and a 
sujjplemental appropriation for 1955. 

I am also recommending continued United 
States support of those progiams and interna- 
tional agencies througli wliich ftmds have been 
made available for relief, rehabilitation, and 
resettlement of escapees, refugees, and otiier 
special groups. These agencies include the Inter- 
governmental Committee for European Migration. 
and the United Nations agencies for Pale.stine 
refugees, and for emergency aid to children. In 
addition, this budget makes provision for a small 
contribution to help the United Nations Higli 
Commissioner for Refugees take refugees out 
of camps and make them part of the local 

Foreign information and exchange actiiutieH. — 
The United States Information Agency has done 
a capable job of redirecting its work and is in- 
creasingly effective. It is carrying out its missioii 
in "9 countries through local radio, press, films, 
and information centers. Its worldwide radio 
broadcasting is increasingly directed to the coun- 
tries beyond the Iron Curtain. But the Soviet 
efforts to divide the United States from other 
nations of the free world by twisting our motives, 
as well as its efforts to .sow fear and distrust, are 
mounting in tempo in many areas of the world. 
I believe it is of the highest importance that our 
|»rogram for telling the truth to jjeoples of other 
nations be .stepped up to meet the needs of our 
foreign policy. 

The Dei)artinent of State's educational ex- 
change program is primarily directed towartl the 
exchange of educators, newsmen, labor and man- 
agement officials, students and others who influ- 
ence the formation of public opinion abroad. The 
sharing of ideas strengthens the community of so vital to our relations with other people. 
I reconunend that exchanges be increased, 
imrticularly with underdeveloj)ed areas. 


Conduct of foreign affairs. — A prerequisite to 
the achievement of all our international affairs 
and finance programs is dynamic, positive, and 
dedicated leadeiship by the Department of State. 

This budget recognizes the essentiality of a 
stronger and better trained career corps of foreign 
service officers. We should also provide more 
adequate facilities for carrying out statutory con- 
.t^ular functions. Finally, more comprehensive 
commercial, labor, and other economic data are 
necessary to assist American businessmen to in- their foreign investment and trade. 

As a result of the recommendations of the Com- 
mittee on Government Operations of the House 
of Representatives and a committee of distin- 
guished citizens, we are starting a series of im- 
provements in the foreign service. The foreign 
service will be expanded to cover departmental 
positions; officers will be rotated more regularly 
between United States and foreign posts; and 
training will be improved. Appropriations to 
initiate these reforms are recommended. 

Reported Soviet Offer To Share 
Knowledge of Atomic Power 

Statement by Lewis W. Strauss 
Chairman, Atomic Energy Comm,ission^ 

white House press release dated Jaoaarj 14 

I have seen the statement from Moscow to the 
effect that the Soviet Government is prepared to 
.share with other nations its knowledge in the 
development of atomic power for industrial use. 
If the report is true, it goes part of the way in 
the direction of what President Eisenhower urged 
in his proposals before the United Nations on 
December 8 a year ago. 

We have already translated the President's 
words into action by allocating 100 kilograms of 
uranium for a world pool of fissionable materials 
for peacetime uses. We have made a large amount 
of reactor information public and have declassi- 
fied information alxjut the new reactor CP 5, near 
Chicago, quite recently. 

The Soviets have allowed more than a year to 
elapse after the President's proposal before giving 
this much of an indication of their attitude — if 
the report is anything more than propaganda. 

' Made at the White House on J;m. 14 nfter an appoint- 
ment with the President. 

Department of State Bulletin 

Extending the Trade Agreements Act 

Statement hy Secretary Dulles ^ 

It is my privilege to appear before you in sup- 
port of the foreign economic progi'am wliicli Presi- 
dent Eisenhower outlined in his message of Janu- 
ary 10 to the Congress.^ Specifically, I urge the 
extension of the Trade Agreements Act by enact- 
ment of H. R. 1. This extension, I am convinced, 
will promote the secui'ity and welfare of the 
United States. 

Today that security and welfare cannot be 
achieved without cooperative relations with other 
nations. We need to have partners in the great 
task of preserving human liberty. Fortunately 
we have such partners. The relationship is in 
many cases expressed by defense or mutual secu- 
rity treaties. By such treaties, including those 
now pending before the Senate, more than 40 
nations are boimd to us and we are bound to them. 

Our mutual security treaties serve us indis- 
pensably. They create in the aggregate what none 
of us possesses alone, that is, a total power which 
vastly exceeds that of the Soviet bloc. Also our 
arrangements pi'ovide such locations for striking 
power as make it clear to any potential military 
aggressor that he stands to lose more than he 
could gain. Thus there is a powerful deterrent 
to war. 

That is the key to our peace policy. It is a policy 
which has the overwhelming support of the Nation 
without regard to party. 

It would, however, be a great mistake to assume 
that our security can be assured merely by treaties 
of military alliance. Such treaties crumble unless 
they are supported by something more than words, 
or even by weapons. They require a solid founda- 

'Made before the Ways and Means Committee of the 
House of Representatives on Jan. 17 (press release 26). 
' Bulletin of Jan. 24, 1955, p. 119. 

tion of mutual good will. This, in turn, requires 
that the parties should have a genuine concern for 
each other's welfare. 

Most of our security treaties recognize the close 
relationship between security and economic 

The United Nations Charter, which is in a sense 
the father of all our mutual security treaties, says 
that "conditions of stability and well-being . . . 
are necessary for peaceful and friendly relations 
among nations." 

The Rio Pact of the Americas proclaims that 
security and peace are founded, among other 
things, "on the indispensable well-being of tiie 

The North Atlantic Treaty obligates the parties 
to "seek to eliminate conflict in their international 
economic policies and . . . encourage economic 

The recently signed Manila Pact contemplates 
that the parties will "cooperate with one another 
in . . . economic measures . . . designed both 
to promote economic progress and social well- 

U.S. Responsibility 

In this economic field many nations have a re- 
sponsibility. But the heaviest responsibility lies 
upon the United States. That is because we are 
the world's principal economic unit. Although 
the United States represents less than 7 percent of 
the world's population, we account for more than 
40 percent of the world's production. Our trade 
accomits for between 15 and 20 percent of the 
world's total trade. We are the largest single 
supplier of, and the largest single market for, 
many foreign countries. Therefore, our economic 
behavior is of tremendous importance to our 

ianvary 3?, J 955 


friends and allies. Indeed, we would quickly 
alienate our friends and allies if we followed trade 
policies which cut across their vital needs. 

Many do have such needs. Take, for example, 
Japan. Japan's total area is slightly smaller than 
California. But only IG percent of its land is 
arable, and it is virtually without any natural 
wealth. Its present population is 87 million, 
which amounts to nearly 4,500 people for each 
square mile of arable land. These people cannot 
live except throuTh imports, and they cannot pay 
for imports unless they export. Japan has a large 
industrial capacity, but this serves her little un- 
less she can import the necessary raw materials 
and export the resultant manufactured goods. 

There are many countries which, not having any 
appreciable industry of their own, must export 
raw materials so that they can buy elsewhere 
needed manufactured goods. Tliat is the case in 
Indonesia, in relation to tin and rubber ; in Vene- 
zuela, in relation to petroleum; in Egypt, in rela- 
tion to cotton; in Ceylon, in relation to tea and 
rubber; in Chile, in relation to copper; in Brazil 
and Colombia, in relation to coffee; and in Cuba, 
in relation to sugar. Many of the Arab peoples 
depend on exports of petroleum. In Pakistan 
there is large dependence on exports of cotton and 

Even countries with more balanced economies 
also depend heavily upon foreign trade. For the 
United Kingdom, exports have amounted to ap- 
proximately 21 percent of national income in re- 
cent years. For Canada, the percentage has been 
about 26 percent ; for DeTimark, 27 percent ; for the 
Netherlands, 20 percent; for Australia, 21 percent; 
and for New Zealand, 37 percent. "West Germany, 
too, has a dense population whose well-being de- 
pends on exports. 

Such figures show that it would be folly for us 
to be indifferent to world trade. 

I am glad to say that we have not committed 
that folly. We have succeeded in maintaining a 
vigorous economy which has been a major factor 
in liolding the free world together. We have 
drawn heavily on that economy to meet the special 
needs of others. Our tariff rates have for the 
most part been kept moderate, and we have had 
quotas on only a few products. Our exports and 
imports have greatly increased from the prewar 

However, other countries are uncertain as to 
the future trend of our trade policies. They fear 


that we may shift to a policy of raising rather 
than lowering trade barriers. Such fears, unless 
allayed, could set up a chain reaction wliich would 
gravely damage and disrupt the free world. It 
would bring to pass what Soviet forecasters have 
predicted and would provide hostile rulers with 
another opportunity greatly to expand their 
power. The enactment of the pending bill will 
clear the air and dissipate the hopes of our enemies 
and the fears of our friends. 

Provisions of Bill 

H. K. 1 would extend for 3 years the present 
Trade Agreements Act, which goes back to 1934, 
and it would authorize the President, subject to 
the present peril and escape-clause provisions : 

1. To reduce, through multilateral and recipro- 
cal negotiations, tariff rates on selected commodi- 
ties by not more than 5 percent per year for 3 
years ; 

2. To reduce, through multilateral and recip- 
rocal negotiations, any tariff rates in excess of 50 
percent to that level over a 3-year period ; and 

3. To reduce, by not more than one-half over a 
3-year period, tariff rates in effect on January 1, 
1945, on articles wliich are not now being imported 
or which are being imported only in negligible 

A principal advantage of the bill, from the for- 
eign relations standpoint, is that it extends the 
Trade Agi-eements Act for 3 years and that in- 
creases certainty. 

In 1953 and again in 1954 the Trade Agreements 
Act was extended only for a period of 1 year. 
I do not criticize that. For many years prior to 
1953 international trade had been dominated by 
war factors. From 1939 to 1945 the Second World 
War was in progi-ess. From 1945 until 1950 the 
task was one of rebuilding economic potentials 
abroad which had been largely destroyed by the 
war. In June 1950 the Korean war began, and in 
many countries emergency military programs 
were adopted at the expense of their peacetime 
industries. Only with the conclusion of the 
Korean Armistice in the summer of 1953 did there 
come the opportunity to evaluate our trade poli- 
cies in the light of worldwide peacetime condi- 

Now, however, we have had 2 years of such 
evaluation. We have seen that under the Trade 
Agreements Act as annually renewed there was no 

Department of Sfafe Bulletin 

serious depi-ession of our economy. In fact, today 
our economy is at a high peacetime level in terms 
of employment, real wages, and productivity. 
The living standards of our workers and farmers 
are the highest in history. Therefore, it seems to 
me, the time has come to renew the act not just 
for a year but for 3 years. That will have a 
stabilizing effect and increase confidence through- 
out the free world. 

A second important factor of the bill, from the 
standpoint of foreign relations, is that it provides 
the President with new negotiating powers wliich 
will enable the United States to make a new start 
in promoting freer trade policies on the part of 
other nations. The United States cannot itself 
be the recipient of all of the surpluses of other 
countries. The greatest possibilities of foreign 
trade expansion exist elsewliere. But these possi- 
bilities cannot be realized unless the United States 
is in a position to exert a continuing influence 
upon the trade policies of the free world. 

I can assure you that it is the administration's 
intention to exercise powers contemplated by the 
bill in such a manner that the legitimate concerns 
of United States business will be fully taken into 

Mr. Chairman, the point of view which I am 
expressing here today is that which I have held 
for many years. I recall that on April 15, 1943, 
I wrote to the late Mr. Doughton, an honored chair- 
man of this Ways and Means Committee, recom- 
mending renewal of the Trade Agreements Act. 
In that letter I made two principal points: The 
first was that the United States could no longer 
consider its economic policies to be matters of 
purely domestic concern because the world had 
become so interdejjendent that each country's trade 
and monetary policies had important repercus- 
sions upon others. Secondly, I stressed the fact 
that world trade conditions needed to be given 
stability. Without this, I said, no people can 
make long-range plans and a widespread sense of 
economic and social insecurity is created. 

Now 12 years have elapsed ; I am only confirmed 
' in my earlier views. 

I hope, Mr. Chairman, that I have not given 
the impression that the pending bill would pri- 
marily serve the economic interests of others. 
That is by no means the case. But I do not hesi- 
tate to say that, even if it were the case, I would 
still advocate the bill as needed to preserve the 
unity and vigor of the free world in the face of 

the terrible menace that confronts it. In time 
of war we make sacrifices that are immense. I 
believe that in time of peace we should also be 
prepared to make some sacrifices in order to hold 
together a free-world partnership which is in- 
dispensable to the peace and security of each of 
the parties. 

Happily, however, we do not need to think of 
this bill as sacrificial, even in terms of trade. It 
is a bill to expand our foreign trade. And that 
is good business for us. 

In 1953 our exports, excluding military aid, 
amounted to $12 billion. The economic effect of 
exports is not as directly or as easily perceived as 
the economic effect of imports. But exports make 
an immense contribution to gainful emplojanent 
and to the well-being of farmers and industrial 

Of course, competition from imports or from 
any other source always effects evolutionary 
changes in the economy. However, the bill is 
drafted so as to cushion our economy against 
undue shock by reason of competitive imports. 
Not only would tariff reductions have to be very 
gradual, but the bill does not change the "peril 
point" and "escape" procedures designed to pro- 
tect our economy from especial dangers. 

Economic Adjustments Inevitable 

Adjustments of our economy through one cause 
or another are inevitable. The principal causes 
are not imports but free trade as between the 
several states, the revolutionary developments of 
technical knowledge, and our antitrust policies. 
The cumulative effect of all of this means a con- 
stant replacing of old business with new, and that 
involves individual hardships. We are not callous 
or indifferent to them. But our Nation has found 
that the constant stimulation and renewal of its 
economic life is of tremendous value. That is 
why the United States today produces nearly half 
of all that is produced throughout the entire 
world. Other nations which might have created 
comparable opportunities for themselves have 
dropped behind as they clung to small, protected, 
domestic markets and to cartel policies designed 
to perpetuate the status quo. 

In conclusion, Mr. Chairman, let me say that 
I am not a technical expert in tariff matters. 
Others who can qualify as experts will follow me 
as witnesses. I do know something about the 

January 31, 1955 


foreign relations of the United States. Our for- 
eign policy, as I have put it in capsule form, is to 
enable the people of this country to enjoy in peace 
the blessings of liberty. I am ctmvinced that that 
result cannot be achieved without cooperative 
trade relations of a dependable character between 
the free nations. 

This pending bill and its counterpart. H. R. 
536,* are the only practical vehicles I know of for 
enabling us to promote that cooperation. In my 
opinion, the failure at this stage of world affairs 
to rededicate our Nation to liberal trade policies 

and to do so for a 3-year term would have grave 
consequences. As President Eisenhower said last 
year. "If we fail in our trade policy we may fail 
in all. Our domestic employment, our standard 
of living, our security, and the solidarity of the 
free world — all are involved." 

I fullv agree with his estimate of the situation. 
Therefore, speaking from the standpoint of one 
who has a large measure of responsibility for the 
international relations of the United States. I 
stronglv urge the enactment of the pending bill, 

World Trade and U.S. Security 

by CJarf Boot he Luce 
Ambagtador to Italy* 

The broad lines of my talk are suggested by the 
fact that Benjamin Franklin was the first truly 
universal man our country produced. He was 
printer, writer, pamphleteer, politician, inventor, 
diplomat, and — not least — businessman. His 
many- faceted genius could not brook one single, 
sealed compartment of life. The S4 years of his 
life testified to his awareness of one great truth: 
the values that gave meaning to his life — and life 
to his country — could be defended and advanced 
only on the widest fronts of thought and action. 
All things were parts of a single whole. This, of 
course, was widely understood in the ISth century. 
We in the 20th are beginning to grasp it anew. 

.\s you know, it was not long ago that "business- 
man" was a bad word in America's public vocabu- 
lary. The speed with which such nonsense evapo- 
rates is a tribute to the health of our political 
climate. Today every citizen knows the simple 
links — the simple equations — that relate American 
business to our Nation's very life, to the saving of 
freedom itself. 

" H. B. 1 w»s Introdoced by RepresentatiTe Jere Cooper 
of TnuMsaee. cliairmaii of the Wars and Means Com- 
mittee. H. B. 5S«, idCDtical with H. R. 1. was inCnxlaced 
fcy BepRMOtative Rob«t W. Kean of New Jersey, a 
■fni b d of tke conuninee. 

'Addreaa made before the Poor Richard Club, Phila- 
•Mphia. Pa.. 00 Jan. 17 (press release S dated Jan. 15). 


.security means producticMi. 

Production means defense. 

Defense means solvency. 

Solvency means sovereignty. 

All mean peace. And peace and its preserva- 
tion mean prosperity and its preservation- 

Govemment itself means the Nation's biggest, 
most crucial business. 

Alliances with other governments mean trade 
with other peoples. 

Supponing these truths is the plain testim<my 
of history. The Golden Age of Athens, Renais- 
sance Florence, the unique empire of Venice, 
Elizabethan England and Victorian England — 
these are the centuries* great monimients of tri- 
umphs of the human spirit, matchless conquests 
in arts and letter?.. And all were built upon the 
strongest economic foundations. Each avoided 
light compartmentalizaUon of its life into sealed 
chambers of narrow responsibility. The bosines 
of businessmen was not just business: it ranged 
from patronage of the arts to representation of 
their people at the courts of distant capitals. 

So it is — so it must be — today. 

I have seen the evidence of all this in our diplo- 
matic mission in Rome these last 2 years. Not so 
many years ago that mission consisted of a few 
career officers of our State Department's Foreign 

Department of State Bulletin 

> 1 vice. Today oiu- Foreign Service officers are 
-'1 the core of the organization, but they now 
:. \e. to help them, experts on all subjects from 
:;:: Hery and radar to malaria control and crop 

Why? Because our job today is to represent 
the interests of the United States on all fronts — 
political, cultural, economic, military — and those 
interests require us to help tliis Nation to become 
the strongest and most helpftd ally possible. Xo 
limits can be set to this job. For it epitomizes the 
job of all of us in this 20th century : the job of 
helping freedom itself to survive. 

iWorld's Business Is America's Business 

From this another truth emerges: The whole 
>vorld"s business is America's business — and Amer- 
ca's business is the whole world's. We get tired, 
[ know, of being reminded of this. But living so 
' lose to astounding historic changes, we must keep 
eniinding ourselves how dramatically events 
lave coincided to transform, almost overnight, 
Vmerica's role in the world. 

The fantastic shortening of distances and the 
rrim perfecting of weapons of vast destruction 
lave come at the same moment of history. And 
it this same moment, the United States has reached 
he summit of its power. But that power of ours 
s forged by our expanding industry, wliich as it 
!xpands becomes more than ever dependent on 
foreign markets and sources of raw material. 
5ucli is the coincidence of events we must face and 

Let me give you one interesting illustration of 
he speed of this change in America's life and 
esponsibility. Eecently a European diplomat, 
nquiring into the origins of the First World War. 
uade an exliaustive survey of pre-191i German 
irchives — Blue Books, White Papers, Yellow 
Sooks. Xowhere did he find a single reference to 
he United States as a major world force. And 
hat was only 40 years ago. 

We — the free world — have worked with some 
uccess to build our mihtary might to check aggres- 
•ive world communism: The strength of Xato, 
rhich increases in defensive power each year, and 
he improved defensive capabilities of our friends 
a the Far East are substantial achievements on 
his front. We have, here as elsewhere, learned 
rom Benjamin Franklin, who back in 1773 quoted 
lie Italian saying, '"Make yourselves sheep, and 
he wolves will eat you." 

On the political front the free nations have been 
equally successful. There are the Manila Pact for 
Southeast Asia and the London-Paris accords for 
Western Europe. Other achievements of the free 
world have been the settlement of the Trieste dis- 
pute, the resolution of the Suez Base question, an 
agreement between Britain and Iran over the 
Iranian oil wells, and an accord between France 
and Germany over the Saar. 

"\^Tiile this is reassuring, it is manifestly not the 
complete story. To keep defensive armies on the 
alert and to prepare pacts to deter aggression are 
still not enough to secure peace and freedom. The 
arithmetic of nuclear explosions may be momen- 
tarily reassuring, but it is not conclusive. 

Call for Action on Economic Front 

So our total etFort calls for action on the eco- 
nomic fi'ont. For here words like "liberation" 
and "initiative" can be given real meaning. And 
in this field, the economic, the combination of the 
skills and the common sense of America is 

TAIiat President Eisenhower is developing is a 
forward-looking world economic policy for the 
L'nited States. "A world economic policy"" is a 
dull plirase, without a suggestion of a drum roll or 
a tnmipet blast. Yet it may mean life or death 
for the economies of Europe and of Asia. It also 
may mean the difl'erence between victory and de- 
feat in the contest for the hearts and minds of men. 
Each continent faces different problems. And to 
both, the Uiuted States holds the great key. 

The issue for Europe is tliis : Although indus- 
trial output in most coimtries has been rising at 
the fastest rate in history, the rise in the standard 
of living has failed to keep pace with the expecta- 
tions and the aspirations of the people. That is 
because these aspirations have been gi'eatly stimu- 
lated by the unparalleled recejit developments 
in communications, which have made previously 
isolated groups more and more aware of the pos- 
sibilities of a better life. 

A key reason for this shortfall between actual 
accomplisliments and increasing expectations is 
the state of world trade, treading its narrow, 
I^erilous way between the Iron Curtain in the East 
and the scarcity of dollars in the West. 

Once, the grand avenues of Europe's commerce 
reached to every market, to every continent. 
Since World War II, communism has largely 

anuary 31, 1955 


sealed off Russia, Eastern Europe, and half of 
Asia— and the rest of Asia lies largely undevel- 
oped. So, to find both the markets and materials 
it needs, Europe must turn to "dollarland," the 
United States and Canada. But turning there, 
the hard fact facing Europe is the enforced war- 
time liquidation of most of its old investments in 
the ^Vmericas and elsewhere. 

As Europe needs trade, the other continents — • 
Asia, Africa, Latin America — no less urgently 
need capital and technical skills. In all these 
continents, but most brazenly in Asia, communism 
promises swift progress to the "wonderland" of 
industrialization: production and work, more 
food, better lives for all. The promise is false, 
but the fevered hope of these peoples is itself 
notliing more sinister than the simple thought that 
hunger and disease are not inescapable. No na- 
tion — by its living example — has so dramatically 
brought history's testimony to the validity of that 
hope as has the United States itself. We confront 
in tlie world, then, an image of ourselves — darkly 
seen, but there. And it serves to remind us that 
the U. S. A. — by simply existing as we do in free- 
dom and plenty — is the most revolutionarj' force 
the modem world has known. 

To one specific role the American businessmen 
can play in this world drama, our own history 
again gives eloquent clue. As Secretary of State 
Dulles recently reminded us, it is normal and 
healthy that in a free society economically ad- 
vanced countries lend to underdeveloped countries 
both technical skill and capital. European skills 
and European capital were heavilj' invested in the 
colossal economic offensive that, a century and 
more ago, pushed the frontiers of America and 
the "Western World across this continent to the 
shores of tlie Pacific. Beyond that ocean today, 
like frontiers challenge like boldness and effort 
and skill. 

The Italian Economy 

Now }ou may well wonder : Are not such grand 
considerations of world economic policy remote 
from the specific concerns of j'our Ambassador 
in Italy? 

They are not. The Milanese manufacturer, the 
Tuscan farmer, the Sicilian day-laborer — his fu- 
ture, too, depends heavily, perliaps critically, on 
the decisions of this administration and of Amer- 
ican business itself. 

I^t me explain : 


The economic storj' of Italy was told in very 
simple terms in a single month, in July of last 
year. That month, Italy's industrial production 
hit a postwar high— a full 83 percent above its 
1938 level. Yet that same month, Italy had to 
import $44 million more than it exported from 
this recordbreaking industrial output. This 
merely sums up the story of the last 4 years— years 
of unprecedented Italian productivity, each one 
of which has nonetheless seen the country record 
foreign trade deficits ranging from a minimum 
of more than $500 million to close to $1 biUion. 

Here emerges the cold, clear truth: No matter 
how wisely the domestic economy of Italy is 
geared, this nation cannot live all to itself. 
Geography and nature make Italian self-suffi- 
ciency an impossible dream. To import, to export, 
to trade — this is Italy's very life, its best hope. It 
is, as an economic unit, a fimction of Europe and 
of the world. 

What does this mean to the United States? 

At the present moment Italy's economy, for all 
its encouraging production indices, still means 
other things in terms of human beings. It means 
millions unemployed, or underemployed. It means 
millions of families who never taste meat. In 
political terms, it means this: Many of these 
millions have tasted the intoxicating flavor of the 
promises of communism. 

To meet this situation, the United States has two 
choices. One is to feed the Italian economy on 
American handouts. The other is to help Italy 
open avenues for trade abroad and to help Italians 
create internal conditions that will attract private 
investment, that will put their economy in better 
competitive position. I do not need to tell you 
which way better serves American interests — 
which, while fortifying Italy's national life, shows 
greater respect for the dignity of the Italian 
nation. Furthermore, it must be kept in mind that 
Italy's abilitj' to buy abroad — and she buys heavily 
in the United States — depends directly on her 
ability to sell abroad. 

Now there is no direct magic that the United 
States alone can invoke to heal Italy's trade needs. 
For example : Not America but West Germany is 
Italy's best market today. And Britain, France, 
and Switzerland closely follow. Our help must 
therefore be indirect — indeed, all such economic 
issues involve not just one or two nations, but the 
whole free world itself. As Britain, as France, as 
West Germany find their widening markets in the 

Department of State Bulletin 

world, so — and only so — can they themselves be 
widening markets for the farm products, the 
machinery, the textiles of Italy. 

Thus is every goal merely the beginning in 
this endless cycle, in these ocean-spanning, nation- 
binding processes of trade that are the very blood- 
stream of the free world. What is true in one 
place is true in all. A Britain that must import 
half its food, half its iron ore, all its petroleum, 
depends for its very life on the markets of the 
world. Across the globe, a Japan whose great 
China market lies behind the Iron Curtain must — 
if she is not to trade there — find a way of selling 
more than half a billion dollars' worth of annual 
exports in the Western trading society. 

What do these facts mean to America? In the 
harshest terms, our security; our national sur- 
vival; the allies, the defenses, the bastions neces- 
sary to them. In terms scarcely less harsh, our 
prosperity, itself essential to our security — for let 
us not forget that 100 percent of our tin, mica, 
asbestos, and chrome, 99 percent of our nickel, 99 
percent of our manganese, two-thirds of our wool, 
almost half our copper come from abroad; that 
4 millions of us now work directly for customers 
in foreign countries ; that our farmers earn a per 
person average of $1,100 a year from farm exports. 

World trade affects the security of the United 
States in three direct ways : 

First. We need, for our industries and for our 
defense, what can only be obtained abroad. 

Second. Our world allies can support their 
share of our common defense only as their econ- 
omies permit — and that means only as they can 
trade. What those allies mean, in strictly militai-y 
terms, is some 175 divisions to add to our 20, and 
the bases in Europe, the Near East, and the Far 
East, without which our combined military forces 
would be comparatively ineffective. 

Third. Allies who are denied U.S. markets will 
have to look elsewhere — and they will look behind 
the Iron Curtain. And it would be idle for us to 
exclaim that they would be making fateful polit- 
ical commitments in the process, that as Poor 
Richard warned us long ago, "necessity never made 
a good bargain." 

Finally, the clear and decisive truth is that our 
trade policy is, to all the world, a test of our woi'th 
as a champion of the West, a challenge in our deter- 
mination to be the good partner in world affairs. 

Ambassador Winthrop Aldrich remarked not 
long ago that uncertainty of our tariff policy in- 

January 31, 1955 

329356—55 3 

hibits European businessmen, who fear that suc- 
cess in the American market will invite tariff 
retaliation. Such businessmen are like pole vault- 
ers — they fear that the bar will be raised higher 
after every successful jump. 

But uncertainty is not all. Proposals have also 
been made to cope with the antiquated, red-tape- 
bound, U.S. customs procedure. At the end of 
1953 our ports boasted some 750,000 unsettled cus- 
toms entries, enough for a solid year's work by 
inspectors. A U.S. Government report not long 
ago concluded : "Many goods take longer to pass 
through customs than it took Columbus to discover 

These, then, are the all-important questions of 
our broad economic policy that the President and 
many other government officials will be trying to 
resolve these coming weeks. Theirs is not an en- 
viable task. It is one in which I think all of us 
are called on to try to help, for it forces us to 
see how deeply all interests and sections of our 
Nation are involved in this business of American 
survival. It was Clarence Randall— a business- 
man, not a poet nor a diplomat— who stated the 
matter quite truly : "Because of our greatness as 
a nation, we have suddenly come face to face with 
what may be our final destiny." 

We are still working, albeit for higher stakes, 
in the venerable tradition of Benjamin Franklin, 
businessman and diplomat. And the spirit — the 
heart and the wisdom — of our work matters quite 
as much as its material results. 

The essence of our task in the world is not just 
to clothe the body but to heal the spirit ; to work 
not through global charity but through the wise 
encouragement of self-reliance; to help restore 
dignity to man, pride to peoples, and independence 
to nations. For we know deeply — as Poor Rich- 
ard said in very American language — "A Plough- 
man on his legs is higher than a Gentleman on his 

We know, too, that history is not a notoriously 
patient muse, that time is running out, that not 
too many chances have already been and can still 
be wasted. As a Nation, we dare not join the dis- 
mal ranks of those who, as Richard again told us, 
when the well is dry suddenly know the worth of 

And earnest protestations of good intent do not 
suffice. For "words may show a man's wit, but 
actions his meaning." 

Let, then, our meaning be plain. And, if it is, 
let none of us doubt the outcome. 


OAS Action in the Costa Rican Conflict 

hy Henry F. Holland 

Assistant Secretary for Inter- American Affairs ' 

During the past 10 days much of our attention 
has been centered on the conflict in the Central 
American Republic of Costa Rica. Through the 
newspapers, television, and radio you have fol- 
lowed events there. I would like to discuss with 
you their significance as regards the inter-Ameri- 
can system and the policies of our own Govern- 

The dimensions of the conflict itself may be 
small — some 10,000 government forces, only 4,000 
of them well armed, pitted against GOO to 800 
revolutionaries; nevertheless, the principles and 
issues involved in the conflict are basic and of 
lasting importance to the peace and order of our 

What has been taking place in that small Cen- 
tral American country is in the first place a matter 
of humanitarian concern to all of us because hu- 
man lives and welfare are affected. If, and to 
the extent that, this is a domestic upheaval, it is 
regrettable, and would not be an occasion for U.S. 
or Oas political action. But the nature and ap- 
parent origin of the conflict suggest intervention 
from abroad and thus have presented problems of 
deep preoccupation to the American family of 
nations. At stake have been the principles of 
nonintervention and collective action to maintain 
international peace which are cornerstones of the 
relationship among the American States — a rela- 
tionship which is unique in the divided world of 
today. In the balance stood the expressed inten- 
tion of the American nations to come to the assist- 
ance of a sister republic when the integrity of its 
territory or sovereignty or political independence 
was threatened, thereby demonstrating the effec- 

' Address made before the Rotary Club, Houston, Tex., 
on Jan. 20 (press release .1.3 dated Jan. 19). 


tiveness of the inter-American regional security 

Beyond this, what is taking place in Costa Rica 
and the response of the Organization of American 
States, in my opinion, carried serious implications 
for the fabric of collective security which binds 
the nations of the free world. Happily, in this 
case there was no evidence that international com- 
munism had gained control of the political insti- 
tutions of Costa Rica. If that had been the case, 
the Caracas declaration would have applied and 
the Communist-dominated Government would 
have been deemed a common danger to all of the 
American Republics. 

I am pleased to say that the challenge has been 
met by the Oas, and in a rapid, efl'ective, and 
resoiu'cef ul manner. 

Basic Purposes of OAS 

Before taking up the course of events in the 
Costa Rican crisis and their significance, I believe 
I should very briefly describe the inter-^Vmerican 
machinery to which that country appealed, for any 
of you who might not be familiar with it. The 
Organization of American States, or Oas, as we 
generallj' refer to it, is a regional organization 
within the United Nations. All 21 American Re- 
publics are members. Its affairs are normally 
directed by a Council comprised of representatives 
of each member state and which under emergency 
conditions such as those in the existing situation 
is accorded certain unusual and extensive powers 
such as those it has exercised during recent days. 

Among the Organization's basic purposes as ex- 
pressed in its charter are the following: 

a. To strengthen the peace and security of the continent ; 

b. To prevent possible causes of difficulties and to ensure 

Department of State Bulletin 

the pacific settlement of disputes that may arise among 
the Member States ; 

c. To provide for common action on the part of those 
States in the event of aggression. 

A fundamental principle vouchsafed in the 
charter (article 25) is that: 

If the inviolability or the integrity of the territory or 
the sovereignty or political independence of any American 
State should be affected by an armed attacli or by an act 
of aggression that is not an armed attack, or by an extra- 
continental conflict, or by a conflict between two or more 
American States, or by any otier fact or situation that 
might endanger the peace of America, the American States, 
in furtherance of the principles of continental solidarity 
or collective self-defense, shall apply the measures and 
procedures established in the special treaties on the 

The principal treaty referred to in this article 
is the Inter- American Treaty of Reciprocal Assist- 
ance, known as the Rio Treaty. It is under this 
treaty that Costa Rica on January 8 appealed to 
the Council of the Organization for assistance, 
considering itself to be in imminent danger of 


The Costa Rican call for Oas action brought to 
a head issues and difficulties which have hovered 
in the background for some time. Last spring, 
after frustration of an attempt to assassinate him, 
the President of Nicaragua asserted that the Pres- 
ident of Costa Rica, from whose territory certain 
of the conspirators had come, was implicated. 
Thereafter, the Costa Rican Government from 
time to time asserted that a revolutionary move- 
ment was being prepared against it from outside 
its territory, with the toleration, if not assistance, 
of other governments. 

During this period of tension in the area, those 
of us dealing principally with Latin American 
affairs in Washington were informed of these 
developments. Not infrequently we were called 
upon to lend our assistance in an effort to ease the 
difficulties. At times both before and after the 
recent outbreak we have been asked to provide 
more direct assistance ourselves. 

In response to such appeals, the policy of the 
Government of the United States has been to take 
such informal and friendly steps as we believed 
would be proper and helpful to bring about a more 
cordial atmosphere between the governments con- 
cerned. We also encouraged them to make every 
effort to resolve their difficulties by direct negotia- 

tions. All members of the Organization of Amer- 
ican States clearly have a responsibility to strive 
for such settlement under the charter of that body, 
the Rio Treaty, and the U. N. Charter. However, 
we have firmly and consistently insisted that gov- 
ernments which found themselves unable to re- 
solve their difficulties by direct negotiations should 
utilize the abundant and effective machinery of the 
Organization of American States in achieving 
that peaceful solution which is enjoined upon all 
members of the inter- American community. Spe- 
cifically, we have repeatedly advised that a gov- 
ernment which had reason to believe that its 
sovereignty or political independence was endan- 
gered from outside its territory should place its 
complaint before the Organization of American 
States. We believe that procedures which are 
readily available in the Oas can be effective, and 
that the degree to which they achieve good results 
depends in no small measure upon the degree to 
which the American States resort to them and thus 
demonstrate their confidence in them. No ma- 
chinery for the maintenance of peace and security 
can demonstrate its effectiveness unless it is used 
by the governments that created it. 

Appeal by Costa Rica 

Now let me review briefly the order of events in 
connection with Costa Rica's appeal to the Oas. 
That will permit a clear understanding of the role 
played by the United States and the other members 
of the Oas. 

On Saturday, January 8, the Costa Rican repre- 
sentative notified the Council of the Organization 
of American States that his Government believed 
an invasion of its territory was imminent and 
that the movement was being supported in viola- 
tion of the obligations of the governments under 
inter-American treaties. These proliibit any 
American State from resorting to force in a dis- 
pute with another and require each State to take 
effective measures to prevent its territory from 
being used to further an armed attack on any other 
State. Costa Rica asked that the provisions of 
the Rio Treaty applicable to such emergencies be 

The Chairman of the Council immediately 
called a meeting of that body for the following 
day. Subsequently, the meeting was postponed 
24 hours, with the concurrence of the representa- 
tive of Costa Rica, because of the absence of the 
Nicaraguan representative from Washington. 

January 3 J, 7955 


The Council met on tlie afternoon of Monday, 
January 10, and heard Costa Rica present its case 
and Nicaragua's denial of the allegations of its 
complicity in any revolutionary movement. No 
act of violence having taken place, and considering 
it desirable for the representatives to consult their 
governments on the matter, the Council scheduled 
a further meeting for Wednesday, "calling upon 
the governments of Costa Rica and Nicaragua to 
take the necessary measures to prevent any acts 
which might aggravate the situation." 

The situation changed drastically the following 
morning, Tuesday, .January 11. Rebel forces at- 
tacked and occupied the Costa Rican town of Villa 
Quesada, some 60 miles within Costa Rica, north 
of its capital, San Jose. At the request of Costa 
Rica, the Council of the Oas met immediately that 
day. In view of the new circumstances, it did not 
hesitate to apply the Rio Treaty and, as a first 
step, to send an Investigating Committee without 
delay to the scene to ascertain the facts. The 
United States was privileged to be designated as 
a member of the Conunittee, together with Mexico, 
Brazil, Paraguay, and Ecuador. The Committee 
was named at 9 o'clock in the evening. At 6 
o'clock the following morning the group was on 
its way in a plane which, in view of the urgency 
of the matter, was furnished by the United States. 
The Council had acted with vigor and dispatch. 

Wiile the Investigating Committee was en route 
on Wednesday, a now element entered the picture: 
Costa Rica reported that during the day several 
towns, including the capital, had been bombed and 
strafed by aircraft coming from the north. Costa 
Rica pointed out that, having no air force of its 
own, this development posed a new and serious 
danger to its security. Not only was the danger 
increased, but it appeared that such elements could 
only have come from outside Costa Rica. 

International Aerial Patrol 

In response the (^ouncil called urgently upon 
all American governments to take the measures 
necessary to jjrevent the use of their territories 
for any military action against another govern- 
ment.' But it ahso made what I think is an historic 
decision in the inter-American system— the estab- 
lishment for the first time of an international 
aerial patrol under the supervision of an Oas body 
for the purpose of making peaceful observations 

* liULLETiN of Jan. 24, 195.5, p. 132. 


over the region affected by the situation. To ac- 
complish this, the member governments in a posi- 
tion to do so were requested to place at the disposal 
of the Investigating Committee aircraft which 
would fly in its name and under its supervision. 
Within 2 houi-s after this decision was unani- 
mously taken by the Council, our Government an- 
nounced that it was making planes available. 
p]cuador, Uruguay, and Mexico have taken the 
same step. 

The use of peaceful observation flights under 
the supervision of the Investigating Committee is 
a new development in inter- American peace ma- 
chinery. Multiplying the eyes and expanding the 
vision of the five-man Committee, this procedure 
doubtless also served as a deterrent to any inter- 
national transit of men and arms in violation of 
treaty obligations. 

Recognizing the need for a finding of facts, the 
Council requested the Investigating Committee 
to send immediately a preliminary report on the 
situation. This the Committee did with note- 
worthy speed. 

This report, received late Thursday, indicated 
that aircraft originating from outside Costa Rica 
had machinegunned and bombed several places in 
the country, and that there existed grave presump- 
tion that arms entering Costa Rica were continu- 
ing to arrive across its northern frontier. On Fri- 
day the Council, on the basis of this information, 
condemned the acts of intervention against Costa 
Rica; it called on all American governments, espe- 
cially Nicaragua to the north, to redouble their 
efforts to prevent their territories from being used 
for military action. It also directed its Investi- 
gating Committee immediately to send observers i i 
to all airports and otlier places in the region which 
might be used to transport military elements into 
Costu Rica. Meanwhile, constant aerial surveil- , 
lance under the supervision of the Investigating ' 
Conunittee continued, as did the other activities 
of the Committee. 

At midnight on Saturday, January 15, the Com- 
mittee reported that its reconnaissance indicated 
that the air force of the revolutionary group oper- 
ating in Costa Rica had been increased by the 
addition of one P— i7 which had come from outside 
Costa Rica. This plane had been used in strafing 
operations. The Costa Rican Government had 
no combat aircraft with which to meet this new 

Department of Stale Bulletin 

At 2 o'clock in the morning on Sunday the 
Council of the Oas met to consider what should be 
done in the light of this latest development. The 
Council was informed that Costa Rica had asked 
that the United States sell it four P-51's. Since 
the problem was being dealt with by the Oas, we 
would not send such war material into the area 
except at the request of the Council. We told the 
delegates that we could under our laws make a 
sale of the four planes to Costa Rica, and that, if 
the Council requested that such aircraft be made 
available to the Costa Rican Government, we 
would do so. Five hours later, at 7 o'clock in the 
morning last Sunday, the Council unanimously 
approved a resolution which made known its 
desire that these aircraft be sold to Costa Rica.^ 
At 3 o'clock that afternoon the four P-51's were 
on their way to Costa Rica. They arrived on 
Monday, January 17, and have been turned over to 
the Costa Rican Government. 

Price of Planes 

There has been speculation in the press as to the 
price of the planes which have been transferred to 
Costa Rica. United States law requires that the 
price of military equipment sold to other friendly 
governments be fixed at its fair value, which is 
determined according to standards specified in the 
Mutual Security Act of 1954. In past sales of 
similar equipment that price has been far less than 
the original cost of the planes. The price in this 
case is now being determined by the Department 
of Defense and will be fixed on the basis of the 
type of plane and equipment, spare parts, and 
services made available with them. I might add 
that if, because of price or any other reason, Costa 
Rica would now prefer not to have the planes, we 
would be satisfied to have them returned. They 
were withdrawn from National Guard units here 
in Texas, where they are useful. 

After its night session the Council reconvened 
at 4 o'clock Sunday afternoon to consider what 
further measures might be taken to insure against 
treaty violations. It had before it petitions from 
both Costa Rica and Nicaragua that effective sur- 
veillance of their frontier be established under the 
Oas for the purpose of keeping watch on border 
crossings by revolutionary forces or supplies. 
The Council approved this request, directing its 
Investigating Committee to plan and maintain 

' See page 182. 

effective vigilance of the border through its mili- 
tary advisers. 

Aerial reconnaissance revealed that the rebel 
forces had four planes — two AT-6 trainers, a DC- 
3 cargo plane, and the F^7 which I have men- 
tioned. The DC-3 crashed last Sunday. On Mon- 
day the air patrol reported that the three 
remaining planes had left the rebel airstrip in 
Costa Rica. Later the two trainers were observed 
to land in Rivas, Nicaragua, where the pilots 
surrendered to Nicaraguan authorities, who re- 
port that the Government has interned the air- 
craft and crews. The whereabouts of the fighter 
plane has not been determined. 

This account of the action taken by the Oas 
speaks well of the forceful and expeditious manner 
in which the 21 American Republics, operating 
through their regional organization, have been 
able to act. Not only has its action saved lives 
and property which would undoubtedly have been 
destroyed had the fighting become more wide- 
spread ; it has also shown to the world that effec- 
tive machinery exists and is being used in this 
hemisphere for the prevention of international 
conflicts. This success will strengthen the Organ- 
ization of American States by giving a concrete 
demonstration of its power as a deterrent to war- 
fare in this hemisphere. The United States as a 
member of the Oas may be justly proud of its 
contribution to this joint undertaking. 

Question of Responsibility 

A question often asked me in the last several 
days is. Who is responsible for this armed conflict 
in Costa Rica ? Are the accusations made by the 
Governments of Costa Rica and Nicaragua against 
each other true? This is not a question for any 
one member of the American community to decide, 
and we shall not engage in speculation. The 
determination of facts and the assessing of guilt, 
if any, is the function of the Oas. If we want to 
preserve the dignity and integrity of our regional 
organization, we must not prejudge issues which it 
is studying preparatory to rendering a decision 
upon them. Nor must we expect hasty decisions 
from it. The Investigating Committee is still in 
the field. It has just spent time in Nicaragua, 
where, at the invitation of that Government, it has 
been assembling information. Until all of the 
facts are in, it would not be proper to render any 
judgment, as the voicing of unfounded or unsup- 

January 37, 7955 


ported accusations by an official spokesman of any 
of the ^Vmerican governments would only tend to 
worsen the situation. 

The importance of the Oas action thus far lies 
chiefly in the prompt and resourceful way in which 
it acted to protect the sovereignty, integrity, and 
inviolability of the territory of one of the member 
states. Despite the small size of the military en- 
gagement which is involved, the issues presented 
were the kind that could in the future arise in 
connection with any member of the group. The 
measures applied were unique. Never before has 
the Organization requested the establishment of 
pacific observation flights or requested the sale of 
military equipment to a beleaguered member. 
Under these circumstances one cannot exaggerate 
the significance of the fact that all decisions not 
only of the Council but of the Investigating Com- 
mittee have been taken unanimously. Americans 
throughout our 21 Republics can be grateful that 
the peaceful solution of our problems has been 
entrusted to this regional organization to which 
the Soviet veto cannot extend. 

The Oas has acted with speed and efficiency 
which desei-ve the applause of all the members of 
the inter-American system. In less than 4 days 
actions were taken which put an investigating 
gi-oup into the affected area and gave it the means 
for carrying out peaceful observations of the wid- 
est possible scope. I doubt that in any similar sit- 
uation an international investigating body has 
discharged its duties with greater diligence, 
greater speed, or greater resourcefulness. 

Furthermore, as a result of the Oas action, air- 
craft were made available which enable Costa 
Rica to defend itself against marauding planes in- 
troduced from outside its territory. The basis has 
been established for a system of effective frontier 
vigilance. These are remarkable achievements 
for any international organization. 

Let mo summarize the policy which the United 
States Government has pursued and will continue 
to pursue in this matter. First, we sujiport vig- 
orotisly all appropriate steps determined by the 
Organization of American States to protect the 
obligations and guaranties of the treaties upon 
which our inter-American sj'stem is founded, and 
we make every effort to insure that these steps are 
taken on the basis of facts rather than charges or 
rumors. Finally, we are committed to a policy of 
strengthening the Oas as an effective international 
organization within the United Nations to which 


members of the American family should in the 
first instance refer such problems as this for peace- 
ful solution. 

Sale of Four U.S. Aircraft to 
Government of Costa Rica 


Press release 27 dated January 16 

In response to a resolution unanimously adopted 
by the Council of the Organization of American 
States this morning, the Department of State an- 
nounced this afternoon that the U.S. Government 
will sell four P-51's to the Government of Costa 

The Council of the Organization of American 
States, which is acting provisionally as Organ of 
Consultation with respect to the Central American 
problem under the Inter- American Treaty of Re- 
ciprocal Assistance (the Rio Treaty), requested 
the governments of member states to expedite ar- 
rangements for the purchase by Costa Rica of 
aircraft which it may have ordered from them. 

The four U.S. aircraft will leave Brooks Field, 
San Antonio, Tex., around 3 p. m. (local San 
Antonio time) today. They will be ferried to 
Costa Rica by U.S. Air Force personnel stopping 
enroute to refuel. They are expected to reach San 
Joso, Costa Rica, tomorrow morning where they 
will be turned over to the Costa Rican Govern- 


OAS doe. C-d-347 (EnglisJi) Rev. 2 

tlik couxcil of the organization of american 
States, Acting Provisionally as Organ of 

Taking into account the petition presented by 
the Delegation of Costa Rica ; and considering the 
reports received from the Investigating Commit- 
tee, the Council, acting provisionally as Organ of 
Consultation, according to which the Government 
of Costa Ricu does not have the necessary aircraft 

' On Jan. 17 the U. S. Government informed the Oab 
Ciiuncil that the planes had been delivered to Co.sta Itican 
■ authoritie.s at San Jos6 that morning. 

Department of State Bulletin 

or arms to defend itself against attacks by foreign 
aircraft of tlie type that is now being received by 
the revolutionary forces; 

Noting that tlie Government of Costa Rica is 
negotiating the purchase of aircraft, and 

Bearing in mind the statement of the Delegation 
of the United States to the effect that if the 
Council so requested, it would comply with the 

request received from the Government of Costa 
Rica for the purchase of aircraft. 

Resolves : 

To request the Governments of the Member 
States of the Organization to expedite the order 
for the purchase of aircraft that Costa Rica may 
have placed with them. 

The New Germany 

hy Cecil B. Lyon 

Director of the Office of German Affairs ^ 

I welcome this opportunity to talk to you on the 
subject of Germany with a sense of both gratifica- 
tion and relief. With gratification, because it 
offers a most timely opportunity to discuss with 
this distinguished audience recent developments 
in one of the most critical areas of foreign policy ; 
with relief, because the facts which I shall discuss 
today are on balance positive and reassuring — at 
least considerably more positive and more reassur- 
ing than they would have been had you asked me 
to report to you in December of last year. 

There is no use denying that twice during the 
last year we were faced with major crises: once, 
after the collapse of Edc at the end of August, 
and again, on Christmas eve, after the French 
Assembly had rejected in the first reading the 
alternative proposals worked out and signed by 
this Government and by the British, French, Ger- 
man, Italian, and Benelux Governments. It is 
difficult to imagine what the consequences of a final 
rejection would have been. Suffice it to say that it 
would have gravely endangered the system of 
Western defense, would have breached the united 
front of the Western Powers, and would have 
presented the Soviet Union with a major political 
and psychological victory. 

' Address made on Jan. 15 before the Institute on Ger- 
many, sponsored by the Cincinnati Council on World 
Affairs and the University of Cincinnati, Cincinnati, Ohio. 

It is pointless to dwell on these contingencies 
now, although the final act needs yet to be written. 
We may take comfort from the fact that, so far, 
the French sense of realism has prevailed, and 
thanks to this the unity of the West has once more 
been preserved. I mention these events with 
malice toward none, for only our global opponents 
would stand to benefit from a discussion of the 
shortcomings or mistakes of ourselves and our 
allies. Particularly I do not wish to reflect on the 
merits or demerits of any of our allies. 

It is worthy of recalling, however, as Secretary 
Dulles pointed out at the time,^ that only a minority 
of 100 Communists in the French Chamber of 
Deputies was adamant in its resistance to the Paris 
agreements. Other parties were divided in 
their opinion, but in the majority of cases those 
who cast a negative vote did not do so out of 
fundamental opposition to the principle of West- 
ern European union or even German rearmament, 
but rather because they were in honest doubt about 
the timing or the form or the methods of organiza- 
tion of this matter which is so vitally important 
to France. I think we all are sympathetic to the 
feelings of our allies, who must face up to such 
heart-searching decisions as the French deputies 
have done in recent months. Their decision re- 
sulted not only from the democratic approach but 

' Bulletin of Jan. 10, 1955, p. 43. 

January 31, 7955 


constituted u rciimrkable sign of progress. In- 
deed, nothing could demonstrate the change in 
European thinking more convincingly than the 
fact that, less than a decade after the termination 
of hostilities, a majority in the French National 
Assembly sliould agree to rearm the one country 
which within the last 100 years has thrice invaded 
French soil. 

The Postwar Metamorphosis 

The change in European and in French thinking 
particularly cannot be fully understood, however, 
unless one realizes that Germany, too, has under- 
gone a fundamental change since the end 
of World War II. In making this statement, I 
do not wish to say — or even to imply — that the 
Federal Republic of Germany has become the 
prototype of Western democracy modeled on a 
pattern made in U.S.A. What I do want to state 
clearly and emphatically, however, on the basis of 
my own observations as tlie former Director of the 
Berlin office of the U.S. High Commissioner, is 
that the Germany of 1955 is neitlier the Germany 
of Hitler nor of the Weimar Republic nor of 
Kaiser Wilhelm's Empire but that it is a new and, 
as I sincerely hope and believe, a friendly Germany 
with aims and institutions akin to ours. It is, 
moreover, a Germany anxious to cooperate with 
the West. 

Millions of GI's who have spent the last war 
years and the postwar years in Germany, thou- 
sands of U.S. citizens who have gone to Germany 
and German citizens who have come to the United 
States on official or private business, for profes- 
sional reasons or under the auspices of the United 
States exchange program, and our own and foreign 
correspondents have provided almost every com- 
munity in the United States with an abundance of 
information about the new Germany. Probably 
at no time in recent history have Americans and 
Germans known more about each other than at 
present. Never have more Germans been able to 
converse in English or Americans in German. 
Yet it is also true — and often deplored on both 
sides of the Atlantic — that nnich of the informa- 
tion is spotty, somewhat subjective, and fre- 
quently outdated. 

That is understandable. First, let us not forget 
that in spite of Germany's well-known trend 
toward political unity and social uniformity, Ger- 
many is also a country of remarkable contrasts 


both in its geographictil and in its cultural make- 
up. Secondly, there is our tendency to like 
and look for common or familiar traits and to 
generalize on the basis of sudden, dramatic, 
and personal experiences — however unique they 
may be. Thirdly, there is the fact that we are 
faced with a situation which is highly fluid. Since 
1945 Germany has gone through a series of radical 
changes which in normal times and in the normal 
life of a nation would have taken decades to accom- 
plish. Some of you may have seen Germany in 
the agony of defeat in 19-15, with its cities in rubble, 
with millions of refugees, with cold, hunger, and 
disease; and some of you may have recently re- 
visited the new Germany with its rebuilt cities, 
with its smoking chimneys, with its teeming high- 
ways, with its comfortably dressed crowds. If so, 
you will understand what I mean. 

Apart, of course, from the physical changes, 
there are other changes no less important, which 
have affected the whole structure of German 
society. The influx of millions of refugees and 
expellees from the former German territories now 
east of the Iron Curtain has changed the social 
complexion not only of individual cities and states 
but of all Western Germany. These new settlers 
have burdened the reviving German economy with 
many serious problems and at times appear to have 
strained the capacity of the German economy to 
tlie bursting point. On the other hand, they have 
also introduced new skills and industries which in 
turn have been a major contributing factor to the 
phenomenal of German productivity and 

On the political side, we have witnessed the 
emergence of a new government, under the coura- 
geous leadership of Chancellor Adenauer, which 
has contributed to European politics an element 
of stability and moderation. In recent times of 
crisis this has proved to be a factor of major 
political importance. This Government of the 
Federal Republic, as you know, derives its au- 
thority from a democratic constitution which 
contains very specific stipulations upholding civil 
rights and liberties. The legislature of the 
Federal Government is an active body of poli- 
ticians representing all shades of political opin- 
ions from moderate socialism to devout conserva- 
tism. The only elements excluded are the ex- 
tremists of the Left and the Right, for neither 
the Conmiunists nor the neo-Nazis or their politi- 

Department of Sfafe Bulletin 

cal sympathizers succeeded in obtaining the neces- 
sary 5 percent of the total vote in the last Federal 
elections, which the German Constitution demands 
for a party to be represented in the Bundestag. 
Finally, and most importantly, the official authori- 
ties are supported in the Federal Eepublic by a 
public opinion which is decidedly pro-Western 
in outlook and affinity. 

These, then, are the features which form the 
image of the new Germany. On balance, it is a 
reassuring picture, vastly different from preceding 

Nothing could therefore be more misleading 
than to continue to apply to this new Germany 
the oversimplified cliches of former days and per- 
haps to contend that the Germany of 1955 still 
exhibits the quality of Hitler Germany. But it 
would be almost equally fallacious and dangei'ous 
to predict that the Germany of today will be, of 
necessity, the Germany of tomorrow. The Ger- 
mans themselves would be the last to claim this. 
They concede — in fact, they insist — that this new 
Germany, too, is in its formative stage. More- 
over, it would be less than honest to assert or 
to assume that such changes as may yet occur will 
be no more than light ripples on the surface of 
a seemingly calm water. It would also be both 
unrealistic and irresponsible on my part to give 
you any assurance of this nature. The situation 
is too fluid to permit any such predictions. 

Social and Economic Evolution 

No, Europe, and Germany with it, is still in 
the midst of an evolution which is characterized 
by profound social and economic dislocations and 
by a reshaping of traditional values and institu- 
tions. The people in Germany have experienced 
not only the total collapse of their former gov- 
ernmental system but likewise the wiping out of 
many of the concepts upon which it was founded. 
Notions as venerable to Germans as the conception 
of the Reich, of national unity, of public authority 
are now subject to query; even an ideal as sacro- 
^ sanct to the Germans of yesterday as military 
and public service is looked at dubiously by the 
young people of today. In former days they and 
their fathers would have been prepared to dedi- 
cate, and, if need be, to sacrifice, their lives unhesi- 
tatingly for the greater glory of the fatherland. 
The German youth of today is questioning this 

On the other hand, the apathy of the early 
postwar years appears to have all but dis- 
appeared; at least it seems to have given way 
to a hustling preoccupation with material and 
practical pursuits, above all to an intense quest 
for that margin of comfort which constitutes the 
critical difference between subsistence and pros- 
jjerity. To safeguard and to expand this margin 
is the cherished goal of a large majority. Ac- 
cording to available analyses, this satisfaction 
with the economic state of affairs accounted in 
large measure for the overwhelming vote of con- 

Message From Secretary Dulles 

The following message from Secretary Dulles to 
the Cincinnati Council on World Affairs was read 
on January 15 ty Mr. Lyon. 

The increased importance of the United States in 
foreign affairs has made it more necessary than 
ever that our citizens know and understand our role 
in the community of free nations. Thorough study 
and discussion of American relations with other 
countries make a significant contribution along these 
lines, and I am pleased to know that your council is 
undertaking an institute on our relations with 

fidence which the electorate gave to Chancellor 
Adenauer in the last Federal elections. 

Nobody can deny that the wish for economic 
security on the part of the German people offers 
a perfectly valid basis for political decisions and 
is evidence of the growing sense of realism of the 
German voter. I believe that it is reassuring 
to know that questions of German national politics 
are today determined by a peaceful desire for 
greater security or for a protection of the eco- 
nomic status quo, rather than by adventurist 
aspirations at territorial or political aggran- 
dizement. This, I am sure you will agree, is a 
good thing. Also many foreign observers have 
commented with amazement and with satisfaction 
on the absence from German politics today of 
feuds and acrimony such as characterized the 
turbulent twenties. 

All this is most gratifying, and we can only 
express the fervent hope that these more peaceful 
conditions will continue to prevail. With the 
disappearance of the more radical parties from 
the official forum of national politics, the climate 
of political discussion in the Bundestag prom- 
ises to remain better than fair ; at least no menac- 

January 37, 7955 


ing storm clouds have appeared on the political 
horizon — so far. 

But havin<!; said this, let me remind you again 
that the situation is still fluid in many respects 
and that there exist a number of factors which 
might have an unsettling effect on long-range 
German politics. 

There is, first of all, the natural wish of a ris- 
ing nation with astounding recuperative powers, 
located at one of the focal points of world politics 
and of world conflict, to reassert its role as an in- 
dejiendent and contributing member of the com- 
munity of free nations. Those are aspirations 
that cannot be denied, unless we wish to be un- 
faithful to the very principles for which we our- 
selves stand. It is therefore to be expected that 
in the coming years not only will the Government 
of the Federal liepublic become a force to be 
reckoned with on the international scene, but 
also the German people will demand a more re- 
sponsible participation in the shaping of their 
national destiny. 

Problem of Reunification 

Secondly, we must expect that the problem of 
German reunification will become an issue of 
mounting urgency in German politics. The 
restoration of German unity has priority rank in 
German policies; it is also a definite objective of 
the policy of the United States Government. I 
am certain you are well aware that our various 
efforts to reach an understanding on this impor- 
tant question with the Soviet Union have found- 
ered on the intransigence of the Moscow Govern- 
ment. As a result, the illogical, unnatural, and 
tragic division of Germany continues. The Iron 
Curtain that cuts the body of Germany in two like- 
wise divides and truncates Europe. Moreover, 
this unnatural state of affairs disturbs the politi- 
cal balance in all Europe. Until and unless the 
problem of German reunification has been set- 
tled in a democratic and peaceful manner, we 
shall not have achieved that measure of security 
and tranquillity that is indispensable to the 
maintenance of a stable and enduring peace. 

It is true that in the past few months, while 
the Western nations were preoccupied with build- 
ing up their strength, their common efforts may 
have temporarily obscured other objectives— no 
less important— such as that of German unity. 
We may safely assume, however, that once the 


Paris agreements have been fully ratified the 
question of reunification will gain new momentum. 
To be sure, the political opposition in Germany 
will continue to press for an earlier solution, that 
is, for negotiations with the Soviet Government, 
either in a quadripartite conference or possibly 
through regular diplomatic channels. But it 
would be a mistake to believe that pressure for 
action will be confined to the opposition. Other 
groups are equally interested in activating the 
issue of reunification at the earliest possible 
moment. That is understandable. We would feel 
the same way if an Iron Curtain were drawn 
through the middle of the United States, let us 
say along the banks of the Mississippi River. 

To most Germans the problem of unity is not 
even strictly speaking a political question. With 
the Iron Curtain cutting thousands of family ties, 
it becomes a deeply human, highly personal prob- 
lem. But if the solution is too long delayed the 
matter might develop into a very fomiidable po- 
litical issue. It is this question of German unity, 
then, which will keep German politics in a state 
of flux for some time to come. It will provide an 
element of restiveness in national as well as inter- 
national policies. And it will offer a continuing 
challenge to the diplomats and politicians who are 
charged with the task of settling the problem of 
Germany's future. 

The free woi-ld has no choice but to recognize 
the problem and to face it with realism, with 
patience, and with determination. We cannot 
and we nnist not seek to evade it. How and when 
we will achieve our objective, nobody can tell with 
assurance. But we know one thing for certain: 
we will never reach the goal if we permit our op- 
ponents to divide us in our purposes and to scatter 
our energies. The agreements concluded at Paris 
have one aim and one aim primarily, namely to 
unite the will and the power of the free nations in 
a mighty pool of defensive strength. Without 
this aggregate of protective power, we will be un- 
able to help either ourselves or our friends. 

Now you may have heard it said that the crea- 
tion of the Western alliance, rather than improv- 
ing the chances for a relaxation of tensions, is 
likely to freeze the present situation and thus to 
perpetuate the division of Germany, of Europe, 
and of the world. That, at least, is the contention 
of our opponents. 

Permit me to say that this is a willful and ma- 

Department of State Bullefin 


licious deception, that it is nothing but a shameless 
reversal of the facts. The truth is that the world 
situation is now kept in a deep freeze, because 
Soviet, not "Western, policy is rigid; it is so 
because Soviet strategy has not changed one iota, 
in spite of what the spokesmen of the Kremlin may 
say a hundred times each day. The pretense of 
peace and security that accompanies every Soviet 
bid for Western credulity and compliance is noth- 
ing but a tale full of sound and fury, signifying 
nothing. In contrast to Soviet objectives, it is the 
aim of Western strategy to break the ice, to un- 
freeze the present situation by creating a new set 
of facts. The amalgamation of the capabilities of 
the Western nations is such a fact. It will by its 
very existence compel the Soviet Union to take 
Western strength respectfully into account and to 
formulate its own plans accordingly. It may thus 
actually reopen a new way to German unity 
through peaceful accommodations. 

Admittedly, the achievement of unification will 
not necessarily end all problems. The restoration 
of German unity might confront us with new ques- 
tions connected with the integration of a united 
Germany within the then-existing framework of 
political and military alliances. I believe that we 
can face this contingency with hope and assurance. 
We are confident that Germany's cultural heritage 
as a Western nation will guard it against lures and 
pressures from the East and, in the last analysis, 
will determine the course of its future policy. We 
are equally hopeful that the new Germany will not 
lightly jeopardize its own security and the security 
of its neighbors by placing selfish nationalism 
above the common weal. We expect, above all, 
that in order to achieve our common aims neither 
Germany nor any other partner of the Western 
alliance will rush into premature action, particu- 
larly if such action may weaken the foundation of 
Western unity. Let there be no misunderstand- 
ing : Our strength is not for sale. But let us also 
not forget that the position of strength which we 
covet has not been reached as yet and will not be 
attained until the recent agreements have been con- 
summated. Only then will we be able to act with a 
promise of success. 

I believe that Chancellor Adenauer and his gov- 
ernment are guided by the same basic considera- 
tions and that his leadership will prove strong 
enough to hold the German ship of state on an 
even keel. 

The Soviet Challenge 

We must, however, not forget that external in- 
fluences are at work which will do their utmost to 
deflect German policy from its set course. I am 
referring, of course, to the action taken by the