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Full text of "Department of State bulletin"

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'WtA'^JO 




H^ 



i^lTORY 



Jrve^ u)efia/y^t7>teni/ ^ C/tate^ 




'd. XXXII, No. 823 
April 4, 1955 




"■*Te» o* 



AN ESTIMATE OF CHINESE COMMUNIST INTEN- 

TIONS • Remarks by Secretary Dulles 551 

MAN'S BENEFITS FROM THE ATOM • by Ambassador 

Morehead Patterson 553 

VISIT OF PRIME MINISTER MENZIES OF 

AUSTRALIA • Addresses by Mr. Menzies and Deputy 
Under Secretary Murphy 559 

MIDDLE EAST DEFENSE • by John D. Jemegan .... 564 

AGREEMENT ON ORGANIZATION FOR TRADE CO- 
OPERATION AND AMENDMENTS TO GENERAL 
AGREEMENT ON TARIFFS AND TRADE 577 



For index see inside back cover 



Boston Public Library 
Cuperin*'>-"'"'it of Documents 

APR 2 9 1955 




Qje/ia^'l^en^ c^ y^le 0111161111 



Vou XXXII, No. 823 • Publication 5805 
AfTH 4, 1955 



For sale by the Superintendent o( Documents 

U.S. Oovemment Printing OOlce 

Washington 26. D.C. 

Price: 

62 Issues, domestic $7.60, foreign $10.60 

Single copy. 20 cents 

The printing of this publication has 
been approved by the Director of the 
Bureau of the Budget (January 19, 1966). 

Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprtoted. Citation of the Dkpahtmknt 
Of State Bulletin as the source will he 
tppreclated. 



The Department of State BULLETIN, 
a tceekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Government uiith information on 
developments in the field of foreign 
relations and on the trorfe 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 
tlie Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as u>ell as 
special articles on various phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreements to 
ujhich the United States is or may 
become a party and treaties of gen- 
eral international interest. 

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



An Estimate of Chinese Communist Intentions 



Remarks by Secretary Dulles ^ 



I can assure you that I receive this award with 
a very deep sense of the good will that goes be- 
hind it and of the inadequacy of my performance, 
wliich you have kindly judged to warrant it. 
There is one thing to which I should like to al- 
lude — you have spoken of my travels around the 
world. These trips would not have been possible 
if it hadn't been for my wife's presence on prac- 
tically all of them, and I am sorry she is not here 
today. I know she would have been moved to hear 
the kind words that you have said. 

Also, I want to express my recognition of my 
associates in the Department of State and in the 
Foreign Service of the United States whose efforts 
alone have made possible what you have been good 
enough to call my achievements. Without their 
dedicated and skilled efforts, it would not 
have been possible to reach the level of attaimnent 
of our foreign policy goals which we have done 
during the past year. One of the things which 
I have been able to do on these travels of mine 
has been to talk face to face with our Foreign 
Service people in 35 countries (most of which have 
never been visited by any U.S. Secretary of State) , 
and I have found them universally to be dedicated, 
loyal, and capable people — many of them func- 
tioning under conditions of very real hardships. 
They deserve the recognition which you are good 
enough to accord to me. 

AVlaat you have said in giving me this award is 
a cause of great encouragement as we face the 
future. Under today's conditions, there is never 
time to stop for long to take satisfactions with 
reference to the past; and it seems that the only 



' Made before the Advertising Club of New York at New 
York City, Mar. 21, 1955, on the occasion of the award to 
Mr. Dulles of the Club's Bronze Plaque of Achievement. 



way in which one can recognize progress is the 
fact that the problems one is working on today are 
different from those of a little while ago. That is 
a measure of progress. It also is evidence of the 
degree to which it is necessary to maintain a 
sustained effort and sustained courage because the 
forces that we are up against are not going to 
retreat easily from the field of battle and allow us 
to rest on our oars. 

Attitude of Chinese Communists 

Indeed, I came back from this trip to the Far 
East with a sense of deep concern. What I 
learned there about the attitude of the Cliinese 
Communists made me appreciate that they consti- 
tute an acute and an imminent threat. 

Tliey seem to be dizzy with success. They en- 
tertain a very exaggerated sense of their own 
jDower, and they gravely underestimate the power 
and resolution of the non-Communist world. 

Tlieir successes, when they are superficially 
judged, are indeed considerable. 

In 1949, they completed the conquest of the 
China mainland and its nearly 600 million people. 

The next year, in 1950, when United Nations 
forces in Korea were at the Yalu, they entered the 
Korean war and gained a victory which gave them 
control of Northern Korea. 

In 1951, their armies moved into and seized 
Tibet. 

In 1953-54, they stepped up their aid to their 
Communist allies in Indochina and helped them 
to win a spectacular victory over the French Union 
forces at Dien-Bien-Phu. 

Now, they are active in the Formosa Straits, 
where they have taken by force one of the Na- 
tionalist-held islands and have taken others which 
the Chinese Nationalists voluntarily evacuated. 



AprW 4, 1955 



551 



Advertising Club's Citation 

Followiiuj ix tilt filalion riad hi/ Thotiiim B. 
Ilairc, a dircvtor of the Adi^-rtising Club of New 
York, ichen he presented the club's plague to Sec- 
retary Dulles. 

A lawyer by profession and an idealist by nature, 
a prominent and active layman in the Presbyterian 
Church, he has been guided by Christian principles 
and a firm belief in the dignity of man. 

In spreading this gospel around the world, he 
has become the world's most traveled statesman of 
all times and one of the world's greatest salesmen 
of freedom. With almost complete disregard for 
his personal life and his physical health, he has 
driven himself relentlessly in the cause of freedom 
and world peace. 



They are building up their military power in 
North Korea, in open violation of the armistice 
terms. They press ominously their campaign of 
subversion against the free states of Southeast 
Asia. 

They hold and continue to hold United States 
prisoners of war in flagrant disregard of the 
Korean Armistice terms, and they have so far 
rebuffed the efforts of the United Nations to secure 
their release, despite the fact that the Secretary- 
General traveled all the way to Peiping on a 
mission of intercession. 

They have contemptuously rejected an invita- 
tion to participate in United Nations proceedings, 
initiated by New Zealand, which were designed to 
bring about a cease-fire in tlie Formosa Straits 
area. 

In view of this 6-year record, it is not suqirising 
that the Chinese Communist leaders should feel a 
certain sense of intoxication. They have, with 
impunity, three times challenged and rebuffed the 
United Nations, and they seem to feel that the 
entire non-Communist position in the Westt-rn 
Pacific, extending from the Aleutians in the north 
down to Australia and New Zealand in the south, 
is ripe to crumble uiidor tlie impact of their 
successive thrusts. 



Contrast to Soviet Communism 

The aggressive fanaticism of the Cliiiiese Com- 
munist leaders presents a certain parallel to that 
of Hitler. Also, it contrasts to the past tactics of 
Soviet communism. 



Both the Chinese and the Soviet Communists 
have, of course, the same ideological motivation, 
but the manifestations are different. 

So far, the expansion of the Soviet Union haS' 
been accomplished by coldly calculated and delib- 
erate steps. For the first 20 years after the Octo- 
ber Revolution, the Bolsheviks concentrated upon 
consolidating their internal position. They did 
not risk external ventures. "When they did move 
outwardly, it was done skillfully under the cover 
of alliances with the only powers which could 
have successfully opposed them. Thus, it was 
under the cover of an alliance with Hitler that the 
Soviets took their first bite out of Eastern Europe. 
It was under cover of alliances with Great Britain 
and the United States that they took their second 
bite after the German defeat in World War II. 
They have stated that their program will involve 
an entire historical era, and so far at least they 
have not taken reckless risks. 

The temperament of the Chinese Communists 
is different, and while, in the long run, the Soviet 
method may prove more formidable, yet, in the 
short run, the Chinese Communist method may 
prove more dangerous and provocative of war. 



Patience of Free Nations 

The picture I have to draw is a somber one, but 
it is by no means a hopeless one. I believe that 
there is still time to bring the Chinese Commu- 
nists to a more sober mood. The fact is that 
their so-called "successes" have not been due to 
their own strength but to contributing causes. 
Among these have been the restraint and the 
patience of the free nations and their love of peace. 

These qualities should not be misinterpreted as 
manifestations of weakness or of fear. The fact 
is that they stem from strength and resolution 
which can afford to be patient up to the point 
where patience is clearl}' productive only of dan- 
gerous misunderstanding and increased risk. 

The task of peacefully bringing the Chinese 
Communists to see that reality is one of the utmost 
difficulty. A major step in that direction was the 
action whereby the Congress, with virtual unanim- 
ity, authorized the President to use the Armed 
Forces of the United States in the Formosa area. 
With national unity under the calm and strong 
leadership of President Eisenhower, I remain 
hopeful that peace will yet prevail. 



552 



Department of State Bulletin 



Man's Benefits From the Atom 



hy Morehead Patterson 

U.S. Representative for International Atomic Energy Agency Negotiations ^ 



This day is a day to remember. It marks the 
beginning of an extensive, pennanent program of 
international education to apply the knowledge of 
the atom to the betterment and the improvement 
of mankind. 

You who come from every continent of tliis 
earth are true trailblazers in a historic program 
of peaceful cooperation. Kepresentatives from 20 
countries are ready to begin here at the School 
of Nuclear Science and Engineering a most unique 
and fruitful program. Highly significant in the 
operation of this school is its worldwide represen- 
tation. Let us call the roll of the continents : fi-om 
Africa, 1— Egypt; from Asia, 6— Indonesia, Is- 
rael, Japan, Pakistan, the Philippines, and Thai- 
land ; from Australia, 1 — a continent itself ; from 
Europe, 7— Belgium, France, Greece, Portugal, 
Spain, Sweden, and Switzerland ; from the Ameri- 
cas (South, Central, and North), 5— Argentina, 
Brazil, Guatemala, Mexico, and the United 
States — 20 countries, 40 students. 

Each of you is a living testimonial to the desire 
that burns in all the world's people : to help one 
another toward greater health, security, and well- 
being. Through your studies here you will have 
the opportunity to make a substantial contribution 
toward that end. 

The opening of this school is a true realization 
of the hope that modern man can learn to over- 
come his fears and his misunderstandings in much 
the same way that we have learned and are still 
learning to fathom the infinite mysteries of nature 
and to apply them to the benefits of all. This 
School of Nuclear Science and Engineering 



^ Address made at the opening of the School of Nuclear 
Science and Engineering, Argonne National Laboratory, 
Lemont, 111., on Mar. 13. 



equally represents a remarkable advance along the 
path of international cooperation. 

One of the greatest obstacles to the development 
of the peaceful uses of the atom is the lack of a 
large enough body of scientists and technicians 
trained to deal with nuclear materials. We can- 
not have power plants fed by atomic fuel until we 
have engineers and technicians who know how to 
design, build, and operate them. 

We must train many individuals all over the 
world to grasp the problems and to know what is 
required to work safely and effectively with atomic 
materials. The number of reactor engineers in 
the U.S., the United Kingdom, Canada, France, 
and elsewhere in the free world are all too few. 
Their numbers must be rapidly increased, espe- 
cially in those areas where such specialized skills 
may most readily be put to work. 



America's Hatred of War 

The existence of this school for the exchange of 
know-how to the benefit of mankind is typical of 
the way in which the American people express 
their deep and genuine hatred of war and all that 
it implies. War, and especially 20th-century war, 
must of necessity bring with it the type of politi- 
cal and economic regimentation which is destruc- 
tive of the finest and most productive values in 
American life- 
American civilization and institutions flourish 
in peace. On December 8, 1953, President Eisen- 
hower delivered his momentous message to the 
world — a broad plan for turning the atom to peace- 
ful uses. 

It is not enough [he said] to take this weapon out of 
the hands of the soldiers. It must be put into the hands 



tiprU 4, 7955 



553 



of those who will know how to strip its military casing 
and adapt it to the arts of peace. 

The United States knows that if the fearful trend of 
atomic military buildup can be reversed, this greatest of 
destructive forci>s can be developed into a great boon, for 
the benefit of all mankind. 

The harnessing of tlie atom for peaceful pur- 
poses is a natural and inevitable step for the Amer- 
ican people. The sharing of this knowledge with 
our friends is natural and inevitable. It was 
natural and inevitable that the American people 
should disarm with almost frenzied rapidity after 
World "War II. A^Hiat other countrj' could have 
demobilized 8 million men in 10 months? It was 
also natural and easy for the United Stat&s to 
oifer, as they did under the IJaruch Plan, to give 
up their most powerful weapon of war— the atomic 
bomb— and offer to internationalize atomic energy. 
And this despite the fact that the United States 
had a monopoly of that weapon at that time. The 
sole condition 'of the offer was that a foolproof 
system of safeguards be worked out and estab- 
lished internationally. 

Those were easy, unhesitating decisions for the 
American people. The difficult and trying deci- 
sion is to spend so much time and effort in the 
sterile business of keeping pace with the warlike 
gestures and preparations of the aggressors. 
And, yet, we know that we must do that also for 
the general security. 

We turn most naturally and gratefully to the 
development of the atom for peace. The impact 
of the President's December 8 thought was very 
great. It stirred the imaginations of people all 
over the world and created a wave of enthusiasm 
which even a dash of Russian cold water failed to 
chill. 

Optimists and Pessimists 

Such was the enthusiasm that many were in- 
clined to underestimate the practical difficulties 
involved in putting the atom to work. Some con- 
cluded that in a very short time— perhaps next 
month or next year— we would find ourselves in a 
rose-tinted era of atomic plenty. All of us— in 
industry, in science, and in positions of public 
responsibility — have contributed in some measure 
to the public optimism on how much we can expect 
from the atom and how soon. Sometimes we com- 
pete with one another in prophesying the over- 
night transformation of every aspect of human 
life through the application of atomic power. 

S54 



The free world has not been alone in this. 
Wliat, for instance, have the Russians to say 
on this subject? A recent article in the Soviet 
magazine, A'^ew Generation (Smena), says: 

The use of atomic energy for peaceful purposes will 
permit the correcting of many of nature's mistakes . . . 
the "Turgai Gates" might be blown up to open the way 
for Siberian rivers to flow south to Central Asia and 
Kazakhstan. 
And again 

irrigating such deserts as the Sahara, construction of a 
colossal power plant in the Straits of Gibraltar, building 
a dam . . . that would direct the warm streams of the 
Pacific Ocean to the Arctic Ocean to warm the areas 
beyond the Arctic Circle. 

The article then indicates that all this could 
happen immediately, with one proviso only: It 
points out that these "earth-shaking schemes will 
have to wait for the end of capitalism:'' From 
what we really know, none of these earth-shaking 
schemes nor the end of capitalism are imminent. 

So much for the optimists. 

Now for the pessimists. 

A respected political leader in one country sug- 
gests that we give up hope of ever being able to 
solve all atomic problems, that we turn back the 
clock and that the United States "tlirow all its 
atom bom.bs into the deep Antarctic and begin a 
new world free from fear." World opinion would 
force all other possessors of atomic weapons to 
do the same, he said. Of course this would mean 
a complete halt to the development of peaceful 
uses of the atom. 

The road which the United States has chosett 
to follow is not that of mirealizable earth-shaking 
schemes, nor is it the road of despair which wouldl 
abandon all hope of progress. We seek to mova 
forward constructively and practically with steadji 
steps toward making the atom a real servant ol 
mankind. Each year will show advances oveU 
the previous year. 

Nuclear Fuels for Electric Power 

In the public discussions on the potentials of 
the atom the aspect that has attracted principal 
attention until now is the prospect of cheap and 
plentiful electric power, using nuclear mat«riala 
as fuel. The world's energy requirements are ris- 
ing so rapidly that much of our immediate interest 
in the atom is concentrated in this field. A good 

Department of Sfofe Bu//ef»« 



part of your own time at this school will be de- 
voted to certain aspects of this subject. 

The countries which you represent hope to real- 
ize as soon as possible many benefits from the 
development of reliable and economical power 
plants utilizing nuclear fuels. For each country 
the timetable of tliis development will vary. The 
power requirements of all your countries are in- 
creasing rapidly each year. It is possible to esti- 
mate with reasonable accuracy the time when it 
will no longer be i:)ossible to expand the conven- 
tional sources — waterpower and coal — in pace 
with the requirements. In most of the countries 
of Western Europe the problem will become acute 

: in 10 to 15 yeai-s. Indeed, Portugal estimates that 

j lier requirements are increasing at the rate of 20 
percent per year — a 5-year problem. 

j I am deeply convinced that the atom holds lim- 
tless potentialities for hiunan good. Science and 

j. ndustry, hand in hand with govermnent, will level 
:he barriers that stand between us and the econom- 
cal application of nuclear power. Yet I must 
iomid a word of caution. Every promise has three 
limensions, one of which is time. "'When?" is a 
nost important word. We will bring only dis- 
ippointment and disillusion if people are per- 
;uaded that this is an easy and quick assignment. 
Freer exchange of scientific information be- 
ween our countries — as represented by this 
chool — will hasten the time of success. But we 
nust all realize that great human and material 
iffort must still be exerted before we can tap the 
tom's full potential. Even when we have suc- 
eeded, it will not be the answer to every problem 
n every corner of the earth. 

The Sahara Desert just cannot be made to bloom 
text year. 
The Siberian rivers will not flow south the year 
fter that. 
The North. Pole need have no fear that man will 
'le able, through the atom, to melt the icebergs of 
he Arctic Circle in 1958. 
Before we can run, we must learn to walk. 



knalogy to Aviation 

To my mind, the best way to illustrate where 
^e stand today in the realm of atomic power is to 
raw an analogy between the development of avia- 
ion in the early years of this century and the pres- 
nt stage of development of atomic energy. 

In the late twenties a wave of enthusiasm swept 



the world for the peapeful uses of the airplane. 
Up to that time the chief developments in aircraft 
had all been military. Little serious thought had 
been given to the commercial use of planes. Sud- 
denly, the world saw a tremendous and immediate 
futui-e for civil aviation. 

Magazines were full of articles. Luncheon and 
dinner speakers painted glowing pictures of the 
day when every man would fly his own plane to 
work. Civic plamiers predicted that congested 
residential districts, because of the accessibility 
due to planes, would soon be only a memory. 
Workers could be scattered over an area of a hun- 
dred miles or more and still get to their jobs on 
time in their personal planes. 

The headway in civil aviation has, of course, 
been impressive. It has brought material benefits 
to all of us. And yet very few of us can commute 
to work by air. Railroads, steamei-s, and buses 
continue to run, and the use of automobiles has 
increased many times more rapidly than the use 
of planes. 

The reason why the dreams of the twenties are 
still only partly realized is a simple one: With 
aviation, something new was added to the com- 
plexities of travel — the law of gravity. Flying is 
not dangerous. The danger begins when the mo- 
tor fails and you stop flying. That is when grav- 
ity takes over. Ever since the Wright brothers 
made their first flight, our ingenuity has been 
focused in two directions : first, on ways to make 
planes safer and more reliable; and, second, on 
the training of technicians — the pilots and gi-ound 
crews. We have made enormous strides in tliis 
direction. Today, after 50 years of constant ex- 
perimentation and improvement, air travel has be- 
come so safe that our major airlines fly millions 
of miles each year without a casualty. They solved 
the safety problem just as you, and others like 
you, will solve the problems inherent in the safe 
application of atomic power. But it took time. 

In the firet years of powered flight, spanning the 
whole period from 1903 to 1937, the average in- 
crease in speed of aircraft was 12 miles an hour 
per year. In other words, each year man flew 
12 miles faster than he did the year before. In the 
next 10 years, including the period of World War 
II, the speed of aircraft went up about 25 miles an 
hour each year. Since then, with tlie development 
of jet engines, the speed has zoomed up 165 miles 
an hour per year. Some of our pilots have flown 
1,600 miles an hour, and the end is not in sight. 



ilpr/; 4, J 955 



555 



Tlie precise timetable of developments in the 
atomic tield will not duplicate our experience in 
aircraft, but realism requires us to accept the 
certainty that we will j^o through a somewhat 
similar pattern of progress — slow and tentative at 
first, much more rapid and dependable as we learn 
the problems and what techniques oti'er the most 
effective solutions. We are going to get a great 
deal from the atom, but it is foolhardy to tell our- 
selves we are going to accomplish this revolution 
overnight. 

I am confident that the will and the ability to 
solve the many problems will be found. Indeed, 
an occasion like this one here today represents the 
best assurance that the thinking of experts from 
all nations can and will be focused on prompt and 
effective solutions. Out of such fine cooperation 
can come only good. 

International Agency 

These past months progress in another direction 
has been made toward international cooperation in 
peaceful uses of the atom. We have moved for- 
ward on the path leading to the creation of an 
international atomic energy agency as suggested 
by President Eisenhower. A draft statute for 
such an agency has been prepared and is presently 
under active negotiation. Included in this statute 
are numerous constructive steps suggested during 
the lengthy and helpful debate on this subject in 
the last United Nations General Assembly.^ 
Wliile it would be premature to discuss today the 
details of the proposed agency, I am confident that 
there will be in existence an active international 
agency to develop the peaceful uses of atomic 
energy before the hottest day of summer. I hope 
that many of you will share in the work of this 
agency.' 

In the future, when we have an international 
atomic energy agency, I hope that all countries 
with peaceful atomic know-how, including the So- 
viet Union, will invite citizens of all other nations 
to participate in their training programs on an ex- 
change basis. The international agency may have 
training programs of its own; and thus it can 



'Bn.i.ETiN of Oct. 4, 1954, p. 471 ; Nov. 15, 1954, p. 742; 
Nov. 29, 1954, p. SiS : Dec. i;{, 19.54, p. 918. 

• For details of plans for U.S. participation in the Inter- 
national Conference on the Peaceful Uses of Atomic En- 
ersy at Geneva, Switzerland, Aug. 8-20, 1955, see ibid., 
Mar. 14, 1955, p. 444. 



assist materially in arranging for spreading 
atomic know-how everywhere. 

I congratulate the Atomic Energy Commission 
for its bi"oad vision in establishing this school. 
I congratulate the staff of the school for the care- 
ful and skillful arrangements which, I am con- 
vinced, will make the courses a success. And 
I congratulate you, the students from foreign 
lands, who will go back to your countries as pio- 
neers in this great work. I think it is the justifi- 
able hope of the world that as peaceful uses of 
atomic energj' become universal and the power 
systems of the world become more and more de- 
pendent upon it, its destructive use in all-out war 
may become less likely. In this sense the develop- 
ment of nuclear power will have significance far 
beyond the economic sphere. In this sense your 
efforts as pioneers in your countries in this field 
may well qualify you for the reward promised to 
"peacemakers." You will be in that enviable posi- 
tion of making the world we live in better, morei 
secure, and healthier. This represents real hope. 
By exchanging know-how and ideas all men 
benefit. 

By this school and by joint participation we 
have made a real move toward international coop- 
eration in harnessing the atom for peace. The 
message of hope which the President of the United 
States gave to the United Nations a little over a 
year ago has become today a reality. 



Special Assistant to the President 
for Developing Disarmament Policy 

Statement btj the President 
White Hous« press release dated March 19 

The massive resources required for modern 
armaments, the huge diversion of materials and 
energy, the heavy burdens of taxation, the de- 
mands for years of service of vast numbers of men, 
the unprecedented destructive power of new 
weapons, and the international tension which 
powerful armaments aggravate have been of deep 
concern to me for manj' yeare. 

At the same time the tragic consequences of 
unilateral disarmament, the reckless moves of 
Hitler when the United States was weak, the 
Korean aggression when our armed strength had 
been rapidly diminished, and tlie vast extent of 
the armament now centered around the opposing 



556 



Department of Stale Bulletin 



ideology of communism have been equally appar- 
ent to me. 

The recent session of the Disarmament Commis- 
sion of the United Nations has again resulted in 
no progress and no clear crj'stallization of think- 
ing on this subject. It has an inseparable rela- 
tionship to our constant objective of peace. 

I have, therefore, established a position as Spe- 
cial Assistant to the President with responsibility 
for developing, on behalf of the President and the 
State Department, the broad studies, investiga- 
tions, and conclusions which, when concurred in 
by the National Security Council and approved by 
the President, will become basic policy toward the 
question of disarmament. The position will be of 
Cabinet rank. ^Vlien indicated as desirable or 
appropriate under our Constitutional processes, 
concurrences will be secured from the Congress 
prior to specific action or pronouncement of policy. 

I have appointed Harold Stassen as a Special 
Assistant for discharge of this responsibility. He 
will be expected to take into account the full impli- 
cations of new weapons in the possession of other 
nations as well as the United States, to consider 
future probabilities of armaments, and to weigh 
the views of the military, the civilians, and the 
officials of our government and of other govern- 
ments. 

For the time being, and for the presentation of 
the Mutual Security Program to the Congress, he 
will also continue to discharge his responsibility as 
Director of the Foreign Operations Administra- 
tion, but he will begin this new task promptly upon 
this appointment. 



London Discussions on Disarmament 

Statement hy Secretary Dulles 

Press release 158 dated March 22 

I have been asked about the effect of Mr. 
Stassen's appointment as the President's Special 
Assistant for disarmament problems on the nego- 
tiations now being carried on in the U.N. Disarma- 
ment Subcommittee in London. 

The discussions in London are continuing and 
will continue as long as there is the slightest ad- 
vantage to be gained by further exploration of 
the subject. The U.S. representative. Ambassador 
James J. Wadsworth, is ably representing the 
United States in these discussions. The United 



States IS faithfully carrying forward its efforts 
to find a formula for effective and safeguarded 
disarmament. 



Supreme Court Decision 
on Sovereign Immunity 

On March 7, 1955, the United States Supreme 
Court rendered an opinion in the case of National 
City Baiik of New York, Petitioner, vs. The Re- 
public of China et al. This case involved a de- 
posit account of $200,000 established by the 
Shanghai-Nanking Railway Administration, an 
official agency of the Republic of China, with the 
National City Bank of New York. The agency 
sought to withdraw the funds, but the bank re- 
fused to pay and suit was brought by China in the 
District Court in New York. The bank counter- 
claimed for $1,634,432 on defaulted Treasury 
notes of the Chinese Government owned by the 
bank. After China had pleaded sovereign im- 
munity, the District Court dismissed the counter- 
claims. The bank appealed, and it was held in 
the Court of Appeals for the Second Circuit that, 
since the counterclaims were not based on the sub- 
ject matter of the original suit, it would be an 
invasion of the sovereign immunity of the Repub- 
lic of China to allow it to be sued on the counter- 
claims. The Supreme Court agreed to consider 
the case because of the importance of the question 
presented, as well as the fact that it had not previ- 
ously been considered by the Court. 

The Supreme Court, speaking through Mr. 
Justice Frankfurter, held that the Republic of 
China could be sued on the counterclaims for any 
amount not in excess of the original amount sued 
for. In reaching this decision, the Court had 
occasion to comment upon the recently enunciated 
position of the Department of State on sovereign 
immunity as set forth in the Bulletin,^ in which 
the then Acting Legal Adviser informed the At- 
torney General that the Department would thence- 
forth follow the restrictive theory of sovereign 
immunity in considering requests from foreign 
governments that a suggestion of immunity be 
made to a court. AVliile the instant case did not 
turn on the applicability of the restrictive theory, 
the Court, nevertheless, cited the Department's let- 



' Bulletin of June 23, 1952, p. 984. 



April 4, 1955 



557 



ter as an instance of an increasing "ciiilly feeling 
against sovereign ininninity." The Court was also 
influenced by the fact that the Department 
"neither has been asked nor has it given the slight- 
est intimation that in its judgment allowance of 
counterclainis in such a situation would embarrass 
friendly relations with the Eepublic of China." 
While the Court recognized that the countezclaim 
was not based on the exact subject matter of the 
original suit, nevertheless the majority felt that 
"the ultimate thrust of the consideration of fair 
dealing which allows a setoff or counterclaim 
based on the same subject matter reaches the 
present situation." 

There was a dissenting opinion by Mr. Justice 
Reed, who was joined by Justices Burton and 
Clark, in which the position was taken that the 
question involved was not one for decision by the 
judiciary but rather for Congress or the executive, 
and that, even if it were a matter for judicial 
concern, a suit should not be allowed against a 
sovereign even as an offset to a claim instituted by 
the sovereian. 



Department's Views on ECE Oil Study 

The Department of State on March 18 {press 
release 162) released the following information 
concerning the publication of a study entitled '"''The 
Price of Oil in Western Europe" by the secretariat 
of the United Nations Economic Commission for 
Europe. 

This study was prepared by the secretariat on 
its own initiative and was presented by the secre- 
tariat to the Coal Committee of the Ece. The 
Committee did not consider the substance of the 
study but decided it sliould be published on the sole 
responsibility of the secretariat. 

The U.S. Government representative on the Coal 
Conunittee acquiesced in the decision to publish at 
this time because of the unauthorized disclosures 
of the contents which had already occurred. In 
so doing, the U.S. representative fully reserved 
the position of the U.S. Government on the con- 
tents of the study. The study deals with a com- 
plex and highly controversial subject, and its pub- 



lication will enable both governments and private 
groups to undertake such examination and scrutiny 
as they may choose to give it. Preliminary re- 
view of the study discloses significant omissions 
and errors of fact. The study also appears to sug- 
gest the desirability of governmental and inter- 
governmental controls over oil prices. This 
would be contrary to U.S. Government policy. 

Bonds of Sympatliy Between 
U. S. and Hungarian People 

Following is the text of a message sent by 
Acting Secretary Hoover to the Rt. Rev. Bela 
Varga, president of the Hungarian National Coun- 
cil, on February 23 in connection vjith an ob- 
servance of the Hungarian Day of Independence 
held at Neio York City on March 13 by Americans 
of Hungarian descent and Hungarians in exile. 

The efforts and sacrifices made by the people of 
Hungary in the War of Independence of 184:8-49 
were viewed, as you know, with warm sympathy 
by the American people. This was a period in our 
own history when we were coming of age as a 
nation and, in keeping with the principles under- 
lying the founding of our Government and society, 
the American people felt a deep interest in all 
peoples wlio aspired to freedom and independence. 
In the years that followed, the bonds of sympathy 
between the two peoples were further strengthened 
by tens of thousands of Hungarian immigrants 
who, seeking new opportunities in this land of 
freedom, came to the United States and contrib- 
uted importantly to our national growth and de- 
velopment and to the enrichment of our culture. 

Now, more than a century after the stirring 
events of 1848—49, I believe we may regard as in- 
spiring and reassuring the fact that, despite all 
vicissitudes, the people of Hungary and the j^eople 
of the United States remain stanch friends and 
continue to find in their common devotion to those 
higli ideals the basis of mutual respect and under- 
standing. From these lasting foundations, across 
tlie diflicult days which lie ahead, the goals of 
liberty and justice in the struggle against tyranny 
come within clear prospect, and we can view the 
future witli quiet resolution and confidence. 



558 



Department of State Bulletin 



Visit of Prime Minister Menzies of Australia 



Following are texts of an address made hy Dep- 
uty Under Secretary Murphy at a dinner meeting 
of the Australian- Arnerican Society in honor of 
Robert G. Menzies, Prime Minister of Australiu, 
held at New York City on March 7, and of an ad- 
dress made iy Mr. Menzies hefore the House of 
Representatives on March 16. 

ADDRESS OF WELCOME BY 

DEPUTY UNDER SECRETARY MURPHY 

Tonight it is my happy privilege to express a 
sentiment which I know is in the hearts of all of 
us here — a warm and cordial welcome to our coun- 
try's distinguished guest. Mr. Prime Minister, 
we are delighted that you found it possible to take 
time out of your busy schedule to pay us this visit. 
In behalf of our President and our Secretary of 
State I convey to you their pleasure and satisfac- 
tion and that of other members of the American 
Government who are eagerly looking forward to 
greeting you in Washington. 

I am especially grateful to our hosts this eve- 
ning, the members of the Australian-American 
Society, who have brought us together in a gather- 
ing which is symbolic of the close friendliness and 
neighborly understanding which mark the rela- 
tions between our two peoples. I say "neighborly 
understanding," well mindful of the fact that 
Canberra lies some 9,000 miles from Washington 
and that the airline from San Francisco to Syd- 
ney is traced along some 6,500 miles. We do not 
enjoy with Australia a physical proximity compa- 
rable to that we share with Canada, our great and 
good neighbor to the north. Just as we rejoice in 
an unfortified frontier with your Commonwealth 
associate, so are we gratified that no barrier of 
misunderstanding has been allowed to spring up 
between us to mar the frank and friendly frontier 
of the spirit which leads far out across the Pacific 
and links us with Australia. 



That thought recalls those fateful wartime days, 
when the destiny of the free world hung on its 
double hinge — the South Pacific and North Africa. 
Your role was with the former, Mr. Prime Min- 
ister; mine, with the latter. The triumph of the 
Coral Sea and the victories in the Mediterranean 
laid the solid foundation necessary for the final 
victories in the north. 

The price of those victories, and of others which 
followed, was high. The supreme sacrifice paid 
by thousands of your countrymen and mine, to- 
gether with our allied comrades-in-arms, reminds 
us unremittingly to be on guard against the hos- 
tility of totalitarian thought and action wliich 
would rob our countrymen of their priceless indi- 
vidual identity. This identity is a proud heritage, 
meant for all of us, and inviolably guaranteed to 
your people and to ours through that remarkable 
succession of historic developments wliich we share 
and which had its great political fountainhead in 
Magna Carta. 

Mr. Prime Minister, in your recent speech at the 
Australia Club dinner in London, I am told you 
said very aptly: "We look around the world, as 
we have been looking around it for 10 disappoint- 
ing years." But I think you will agree that we 
do not look around it idly ; the glance has become 
keener, we hope, as we have learned one painful 
lesson after another. We have learned them to- 
gether, and we are together shoring up our de- 
fenses for the preservation of those rights and 
freedoms which give meaning to our lives. 

I have had the opportunity to know in close as- 
sociation with your Commanding General of the 
Commonwealth Division in Korea the stoiy of 
the Australians' valiant contribution to the forces 
of the United Nations which there halted inter- 
national communism's wanton aggression. And 
beyond our Korean association and the close re- 
lations between us which resulted from the Anzus 
Treaty, we are working with you now in the 



April 4, 1955 



559 



Colombo Plan as well as the Manila Pact, both of 
which are designed to contribute to the security, 
the economic welfare, and the advancement of 
freedom among the peoples of the Pacific and of 
Asia. We have recently reaffirmed, at the meet- 
ing of the Council of the Southeast Asia Collec- 
tive Defense Treaty just held at Bangkok, our 
intention to take steps toward the realization of 
the objectives set forth in the defense pact and 
the Pacific Charter — those of upholding equal 
rights and self-determination, promoting self- 
government, securing independence of all coun- 
tries whose peoi)le desire it, cooperating in the 
economic, social and welfare fields, and prevent- 
ing and countering any attempts in the ti'eaty 
area to subvert freedom or to destroy sovereignty 
or territorial integrity. 

The progress achieved at the first Council meet- 
ing in implementing all these objectives provides 
solid hope for even closer cooperation between 
Australia and the United States and all the other 
member nations for the good of the region as a 
whole. At Bangkok it was made clear to the en- 
tire world that such military arrangements as the 
member nations may make will be defensive in 
accordance with their international obligations 
and are not for purposes of aggression. We left 
no doubt of our joint determination to preserve 
and strengthen the peace. 

And so, Mr. Prime Minister, we salute you as 
an ally and welcome you as a friend. You come 
to us from a gathering of other friends of ours 
who comprise your family, the Prime Ministers of 
the British Commonwealth. We shall have the 
pleasure and the honor of welcoming you to Wash- 
ington. May I assure you that the sage counsel 
you may give us in your consultations there will 
be received with great interest and deep respect, 
reflecting, I know, the firm friendship which we 
truly feel for you and your great country. 



ADDRESS BY PRIME MINISTER MENZIES > 

Mr. Speaker, it is almost 5 years since I last 
stood in this place.'' I shall never forget it. I 
was escorted in by four powerful-looking Mem- 
bers. There were a lot of lights burning. People 



' Reprinted from Cong. Rcc. of Mar. 16, p. 2.")93. 
' Mr. Menzles visited Washington in July 19D0. 



560 



were taking pictures and making television. I 
had gone to great pains to make a few intelligible 
remarks. I put them down and I found I could 
not see them. I looked around. I knew there 
were Members here because I could hear tliem — but 
I could not see them. And, apart from my memo- 
ries, the only souvenir I have is a photograph 
which shows me leaning forward with my eyes 
shut and Speaker Rayburn leaning back with his 
eyes shut. 

But, sir, I would not have you think that that 
was the only memory I really carried away with 
me because a parliamentary assemblage has one 
supreme honor within its gift and that is to invite 
some representative of another country to be pres- 
ent, to which honor you, with infinite courtesy in 
this somewhat silent land, add the privilege of 
making a speech, which I am bound to tell you 
is something we have so far resisted in Australia. 
But for a representative of Australia to be here 
twice is a remarkable experience, and I welcome 
it because for the second time I can perform my 
true function in this place, and that is the function 
of speaking as the head of the Government of 
Australia to a nation wliich stands so high in the 
good will and the understanding and the memories 
of the Australian people. 

I am, sir, within the limits of my capacity, a 
constant exponent of tlie need for personal contact 
among peoples of the world, particularly among 
those who have responsibility. Therefore, I re- 
call with great pleasure the visit of more than one 
Member of this House and of the Senate to Aus- 
tralia. So much is that the case that this after- 
noon I h.ave had the fascinating experience of being 
able to greet quite a few well-known men in this 
place on terms of old friendship established in my 
own country. 

I very well remember that before the war it was 
possible to encounter somebody in the United 
States who did not know where Australia was. A 
gentleman in San Francisco once assured me that 
he understood quite plainly it was on the east 
coast of the United States; a sort of off-shore 
island. But those days have gone. The war did 
many terrible things, and it created dangers which 
have not yet passed, but it did some wonderful 
things. I do not think anybody will ever be able 
to estimate the impact upon the Australian mind, 
and if I may say so, upon j'ours, of the existence in 
and around Australia for a long period of time of 

Department of State Bulletin 



hundreds of thousands of young Americans. So 
that wherever we in my party go in the United 
States now we are bomid to meet somebody who 
says : "I was out there with you," or : "My son was 
out there with you," or: "My nephew," or as the 
case may be. And this, I believe, has created a 
distinctive degree of understanding which, as far 
as I am concerned, always makes it so easy to get 
along with the people with whom I have to con- 
duct discussions in the United States. In fact, I 
regret to tell you, Mr. Speaker, that it makes me 
feel so much at home that I am liable to speak too 
long when I am on my feet among people whom 
I feel to be my friends. 

It is a very good thing, sir, if I might engage in 
a small homily, which is an ill reward for your 
kindness, it is a very good thing to make new 
friends in the world, and we must never regard the 
list as exhausted. We must never give up hope 
that in time to come we will have reached to the 
true heart of people who are now unavailable to 
us through some form of dictatorship, and that 
we may find some friendship with them. The 
search for new friends must always go on. But 
it is just as important to remember that old friends 
must be kept, and that old friends can easily be lost 
in this world by neglect or by indifference, by mis- 
understanding. Our opponent in the world un- 
derstands that to perfection, and he devotes the 
bulk of his time in propaganda, in seeking to 
divide us, seeking to set up points of argument, 
seeking to establish some misunderstanding and 
every now and then some hostility between the 
people of the United States and the people of the 
British Commonwealth. We must constantly be 
on our guard against it. I have, and you have, 
from time to time, in this great country of yours 
read things so violently antagonistic to the British 
that I could not conceive that anybody except a 
Communist imperialist could get any pleasure out 
of it. I have in London, or elsewhere, occasionally 
read tirades about the Americans, and I have had 
exactly the same feeling. Of course we are grown- 
up people. We are adult nations. You are more 
adult than we are, because we are not so far along 
the journey of a developing nation. But we are 
grownup people, and we can afford in the context 
of our common freedom and our common under- 
standing to discuss, to argue, to persuade, and re- 
fute. All of the things that you can engage in 
in this House, you engage in under the common 



enveloping garment of a free democracy, of a free 
parliamentary system. 

It is because of that very freedom, because we 
take our freedom as a whole for granted in our 
own countries that we are able to engage in dis- 
putes and arguments to our hearts' content. But 
we know, do we not, that if it comes to the point, 
all arguments are forgotten. The one thing that 
comes uppermost is the pride that we have in being 
one free people in a country of which we are all 
proud. 

I would like to think, sir, that that spirit could 
pervade the whole of the free world. I would like 
to feel that in Canberra we could argue with 
Washington — and we are a fairly argimientative 
crowd at Canberra — that we could argue with 
Washington just as London could argue with 
Washington, just as we could all go on arguing 
with each other, not as if we were liable to become 
enemies, but on the footing that our friendship 
is indestructible and we may. therefore, speak 
frankly — with affectionate frankness — to each 
other. "When that happens and the whole world 
knows that the people of the free world are not so 
easily put asunder by Communist propaganda, I 
believe that will be the most powerful deterrent 
weapon that the world will have produced, because 
the enemy is hoping all the time to divide us. 

As I have just had the honor to say in another 
place, we know, do we not, that should this world 
pass down once more into the valley of a world 
war, we know, do we not, that we are all together 
in it. 

Does anybody suppose that in such a catastrophe 
America would go one way and Australia another? 
Or Great Britain one way and America another? 
Not for one moment. 

If there is one thing of which I have the most 
complete assurance in my heart and mind it is that 
in the supreme test we will be found together, just 
as surely, sir, as American and xVustralian troops 
were found together on the Kokoda trail. 

If we remember that truth, that end truth, that 
ultimate truth, which is therefore the dominating 
truth of our relationship we then merely behave 
like intelligent men and women. If we determine 
that as we shall be together in that event, we shall 
practice being together every month and every 
year as time goes on, we shall learn more and more 
to understand each other, and the funny little dif- 
ferences that exist between us. May I, before I 



April 4, 1955 



561 



resume my seat, sir, mention one thing only? It 
is worth mentioning. In the United States you 
have as tlie head of tlie Government the President. 
The President, I admit, is not without political 
problems from time to time, but the President is 
President for 4 years; and whatever arguments 
may go on somewhere or other, he is President for 
4 years, and, therefore, he has a fixed term and, 
therefore, a degree of executive authority which 
no Prime Minister of Australia could possibly 
aspire to have because the Prime Minister of Aus- 
tralia, I regret to tell you, is not elected for any 
term of office at all ; he is here today and he might 
be gone tomorrow. It might happen. 

These things have been known to happen in the 
past, oddly enough. Therefore, imder our system 
of government, whatever a prime minister does 
must, in the first place, be intimately discussed 
with his colleagues in cabinet. He is not to com- 
mit the goveriunent to a view which he does not 
know he can sustain in his own cabinet. And his 
cabinet is not going to commit itself to a view 
that it does not believe it can carry through 
parliament. Therefore we tend to make all our 
policies by private discussion in the first place, 
and we produce the chicken fully fledged from the 
egg in due course. Sometimes it survives and 
sometimes it does not. Wliereas in the United 
States of America, because of your system, there 
is a constant hammering out of public policy in 
committees and in Congress frequently before the 
point has been reached at which the policy is 
crystallized. I am not quarreling with your 
method. I see great advantages in it and some dis- 
advantages. But what I am pointing out is that 
these are vastly different methods and that unless 
we understand the other man's method we may 
easily misunderstand the significance of some- 
thing that is going on. Somebody reads a speech 
made in this House or in the Senate, somebody in 
Britain, somebody in Australia, and says : "I see 
that American opinion is so and so." But it may 
not be. 

Sir, I have detained the House and trespassed 
on your patience long enough. I said something 
about winning new friends, something about the 
great glories of old friends. I am rather liappy 
to think that I am making my bow to you in this 
place today as a young friend who happens to 
be the child of an old friend. I am not at all 
sure that the children of our old friends are not 
the most attractive of all. 

562 



World Bank Announces Loan off 
$54.5 Million to Australia 

The World Bank announced on March 18 that 
an agreement had been signed that day for a loan 
of $54.5 million to the Commonwealth of Australia 
to finance imports of equipment for the develop- 
ment of agriculture, transportation, electric power, 
and industry. The loan agreement was signed at 
the Bank's headquarters at Washington by R. G. 
Menzies, Prime Minister of Australia, and by 
Eugene R. Black, president of the Bank. The loan 
is for a term of 15 years and bears interest of 4% 
percent including the 1 percent statutory commis- 
sion charged by the Bank. Amortization will 
begin March 15, 1958. 

The Bank has arranged to sell $10.4 million of 
the loan, without its guaranty, to 11 private banks 
in the United States — the largest number ever to 
participate in such a transaction with the World 
Bank. The amount being sold represents the first 
six maturities of the loan, which fall due from 
March 15, 1958, through September 15, 1960. 

This is the Bank's fourth loan to Australia and 
brings to $258.5 million the amount the Bank has 
lent for the import of capital goods and equipment 
needed from the dollar area for development in 
various sectors of the economy of Australia. This 
loan, like the other three, will benefit both private 
and public enterprise. Goods imported with the 
proceeds will be used by farmers, private busi- 
nesses, and Commonwealth and State agencies. 

About $47 million of the loan has been allocated 
to agriculture and transportation. Although Aus- 
tralia is a highly industrialized country, agricul- 
tural products still account for more than 80 
percent of its earnings in international trade. In- 
dividual farmers are increasing their agricultural 
output through more extensive mechanization, 
and imported machinery and equipment has en 
abled the Commonwealth and State governments 
to carry forward programs to intensify land use 
and increase productivity through reclamation, 
pasture development, irrigation, water and fodder 
conservation. The new loan will finance further 
imports of equipment and machinery for these 
purposes, largely tractors, combine harvesters, 
hay balers, and other equipment for fodder con- 
servation. 

The remainder of the loan (about $7.5 million) 
will be used to buy equipment for power plants 
and transmission lines and for manufacturing in- 

Department of State Bulletin 



dustries. The industrial equipment will be used 
in iron and steel production, food processing, min- 
ing, and automotive and general engineering 
industries. 



Regulating Water Levels 
on Lake Ontario 

The International Joint Commission {United 
States and Canada) released the folloioing to the 
press simultaneously at Washington and Mo7itreal 
on March 16} 

At its meeting held in Montreal on 14, 15, and 
16 March 1955, the International Joint Commis- 
sion examined with its technical advisers the feasi- 
bility of reducing tlie wide fluctuations of levels 
(up to 6.6 feet) which have prevailed on Lake 
Ontario in the past. The Commission came to the 
tentative conclusion that, having due regard to all 
the interests concerned, botli upstream and down- 
stream from the International Rapids Section, it 
would be technically feasible to operate the St. 
Lawrence Power Project so as to reduce the wide 
range of fluctuations of levels on Lake Ontario. 

In order to achieve this desirable result, the 
Commission's tentative view is that a new method 
of regulation for the waters used in the project 
must be substituted for the Method of Regulation 
Number 5 referred to in the Commission's Order 
of Approval of 29 October 1952.- The new method 
of regulation would fulfill the basic requirements 
of that Order and would comply with the detailed 
criteria attached hereto. These criteria are de- 
signed to result in benefit to all interested parties. 
They will afford protection for downstream inter- 
ests and, in fact, would improve conditions on 
Lake St. Louis. The lakeshore property owners on 
Lake Ontario will find substantial relief from the 
high water levels which reached a recorded peak 
of 249.3 feet. The maximum level under historical 
supply conditions would under the regulation pro- 
posed not exceed 248.0 feet. Navigation interests 
will gain the advantage of 1.3 feet in depth, which 
is important under low water conditions, by virtue 
af raising the extreme low Lake Ontario stage of 
ecord from 242.7 feet to 244.0 feet. Water 



^ For background, see Bulletin of June 9, 1952, p. 903 ; 
ruly 14, 1952, p. 67 ; Nov. 2.3, 1953, p. 724 : Nov. 30, 1953, 
1. 735 ; Aug. 30, 1954, p. 299 ; and Mar. 14, 1955, p. 437. 

"Ibid., Dec. 29, 1952, p. 1019. 



supply, sanitation, recreational, municipal, and 
other lakeshore interests will also benefit from 
this substantial improvement in low water condi- 
tions. Finally, the power interests will obtain, 
under the new method of regulation, a regulated 
flow of water which will i-epresent an improve- 
ment over benefits which might have been calcu- 
lated under the method contemplated in 1952. 

The International Joint Commission has sched- 
uled public hearings to be held in Rochester, New 
York, on Ajjril 12 and in Toronto, Ontario, on 
April 14 to hear the views of all interested parties 
on these tentative conclusions. 

PROPOSED CRITERIA FOR A METHOD OF REGU- 
LATION OF OUTFLOWS AND LEVELS OF LAKE 
ONTARIO APPLICABLE TO THE WORKS IN THE 
INTERNATIONAL RAPIDS SECTION OP THE 
SAINT LAWRENCE RIVER 

(a) The regulated outflow from Lake Ontario from 1 
April to 15 December shall be such as not to reduce the 
minimum level of Montreal Harbor below that which 
would have occurred in the past with the supplies to Lake 
Ontario since 1S60 adjusted to a condition assuming a 
continuous diversion out of the Great Lakes Basin of 
3,100 cubic feet per second at Chicago and a continuous 
diversion Into the Great Lakes Basin of 5,000 c. f. s. from 
the Albany River Basin (hereinafter called the "supplies 
of the past as adjusted" ) . 

(b) The regulated winter outflows from Lake Ontario 
from 15 December to 31 March shall be as large as feasi- 
ble and shall be maintained so that the difficulties of 
winter power operation are minimized. 

(c) The regulated outflow from Lake Ontario during 
the annual spring break-up in Montreal Harbor and in 
the river downstream shall not be greater than would have 
occurred assuming supplies of the past as adjusted. 

(d) The regulated outflow from Lake Ontario during 
the annual flood discharge from the Ottawa River shall 
not be greater than would have occurred assuming sup- 
plies of the past as adjusted. 

(e) Consistent with other requirements, the minimum 
regulated monthly outflow from Lake Ontario shall be 
such as to secure the maximum dependable flow for power. 

(f ) Consistent with other requirements, the maximum 
regulated outflow from Lake Ontario shaU be maintained 
as low as possible to reduce channel excavations to a 
minimum. 

(g) Consistent with other requirements, the levels of 
Lake Ontario shall be regulated for the benefit of prop- 
erty owners on the shores of Lake Ontario in the United 
States and Canada so as to reduce the extremes of stage 
which have been experienced. 

(h) The regulated monthly mean level of Lake Ontario 
shall not exceed elevation 24S.0 with the supplies of the 
past as adjusted. 

(i) Under regulation, the frequencies of occurrences 
of monthly mean elevations of approximately 247.0 and 



\ptU 4, 1955 



563 



higher on I^iike Ontario shiill he less than would have oc- 
curred in the past with the supplies of the past as adjusted 
and with present channel conditions in the Galops Kapids 
Section of the Saint Lawrence River. 

(j) The regulated level of Lake Ontario on 1 April 
shall not be lower than elevation 244.0. The regulated 
monthly mean level of the lake from 1 April to 30 Novem- 
ber shall be maintained at or above elevation 244.0. 



(k) In the event of supplies in excess of the supplies 
of the past as adjusted, the works in the International 
Rapids Section shall be operated to provide all possible 
relief to the riparian owners upstream and downstream. 
In the event of supplies less than the supplies of the past 
as adjusted, the works in the International Rapids Sec- 
tion shall be operated to provide all possible relief to navi- 
gation and power interests. 



Middle East Defense 



by John D. Jei^negan 

Deputy Assistant Secretary for New Eastern, South Asian, and African A /fairs ' 



Ijet me begin by deKning the area I propose to 
talk about. There is no official or generally ac- 
cepted definition of the term "Middle East," so it 
is necessary to be somewhat arbitrary. However, 
I think it is safe to say that when the American 
Government thinks in terms of Middle East de- 
fense it is tliinking about tlie area lying between, 
and including, Libya on the west and Pakistan 
on the east, and Turkey to the north, and the 
Arabian Peninsida to the south. 

This area contains great human and physical 
resources. The population includes some 40 mil- 
lion Arabs, more than one and a half million 
Israelis, more than 70 million Pakistanis, and 
about 20 million, each, Iranians and Turks. The 
vast majority are, of course, Muslims, but these 
peoples also include important elements adhering 
to the other two great monotheistic religions, and 
all of them share in varying degrees a mingled 
heritage of Eastern and Western culture. His- 
torically, at dili'erent times and in dill'erent ways, 
each of the peoples now living in the area has had 
an important impact on our own Western civiliza- 
tion and has in turn been influenced by the West. 
Today, each nation and each group of peoples in 
the area has vitally important relations with na- 
tions and peoples outside of the area. 

What happens in the Middle East, therefore, 
cannot be treated as in a vacuum, as an isolated 

' Address made before the Conference of Jewish Or- 
ganizations at Washington, D.C, on Mar. 6 (press release 
12.'> dated Mar. 5). 



phenomenon. Events in that region have politi- 
cal, economic, psychological, and spiritual reper- 
cussions on vast areas of the world. These reper- 
cussions are magnified and brought more clearly 
to the public eye by the existence of the United 
Nations as a world forum and by the great devel- 
opment in recent years in the means of interna- 
tional communication and the consequent political 
and economic interdependence of all nations and 
areas. On top of this, we have the strain between 
the free world and the Communist world, which 
has produced a situation in which no area of thei 
world can be regarded as unimportant to the se- 
curity of the United States. 

Our country, in addition, has certain special 1 
ties with the Middle East — sentimental ties, il 
you will. We have a tradition of more than a 
century of philanthropic work in that area. Our 
scholars have devoted much time and effort to its 
archeology and history. Nearly the whole of the 
American people looks to that area as the birth- 
place of its religions. Many of our citizens have 
come from the area, and many Americans have 
strong ties of family or sentiment with the area. 
Furthermore, the United States as a nation and 
many of its citizens as individuals have played a 
ix)le in bringing about the independence of the 
new nation states which make up a large part ol 
the Middle East. We have, naturally, a keen and 
sympathetic interest in the maintenance of theii 
independence and in their progress toward greater 
economic and social well-beinjr. 



564 



Department of State Bulletin 



Resources of Middle East 

From the aspect of physical resources, the im- 
portance of the Middle East to the United States, 
and to the rest of the world, stands out equally 
clearly. Its natural resources include some three- 
fifths of the known oil reserves of the whole world. 
I need hardly underline the significance of this 
one fact. Western Europe and much of Asia and 
Africa depend almost entirely on this source of 
supply. If this oil ceased to be freely available 
in world markets, whether in peace or in war, the 
consequences are easy to imagine. This great 
natural resource is, obviously, of vital importance 
to the countries where it is produced as well as 
to those which consume it. The producing na- 
tions derive from it great revenues which hold 
forth a prospect of major economic and social 
progress for their peoples. 

But oil is not the only resource of the Middle 
East. The area contains others wliich can be 
developed for the benefit both of the area and of 
the consumers of the world. The most valuable 
resource of all is in the field of agriculture. Great 
things have already been done to increase produc- 
tivity and greater things are to come. Industi-y 
is also beginning to develop. 

Its function as a communications link, alone, 
would make the Middle East an area of extreme 
importance. The Suez Canal is the key to the 
trade route between Europe and Asia, and the 
areas to the north and east of the Canal form the 
path for aerial communication between the two 
continents. 

I am sure you will agree with me — I am sure 
you already laiew — that this area is one whose loss 
to the free world would be a major disaster. Yet, 
unless we do something, it is quite possible that 
this loss will take place. 

Ti-aditionally, the Middle East has been an 
object of Russian ambition. This was true under 
the Czars, and it has continued to be true under 
the Soviet regime. It is more than ever true to- 
day. Until some 8 or 9 years ago, the Russian 
drive to the south was contained primarily by the 
existence of British strength in South Asia and 
the Near East. Since World War II the basis of 
British power in this region has been greatly re- 
duced. Britain has withdrawn from the Indian 
subcontinent and from Palestine, and she is in the 
process of withdrawing from Egypt. From the 
long-range political point of view, this with- 



drawal was undoubtedly wise and necessary. It 
has recognized the legitimate political develop- 
ment and aspirations of the peoples concerned and 
has left them free to jjursue their aspirations in 
their own way, but it has also left them largely 
defenseless against expansion by a predatory 
great power. There has been, for some 2 cen- 
turies, little or no indigenous defensive strength 
in the Middle East. Today, that situation still 
prevails in general despite the elements of 
strength represented by Turkey and Pakistan and 
by the small beginnings toward development of 
such strength in certain other countries. Israel's 
military strength is already a significant element 
in the picture. 

The United States, conscious of its new respon- 
sibilities in the world, has been trying to remedy 
the weakness of the area. We cannot, and should 
not, do it in the ways which were customary in the 
19th century. Even if our own traditions would 
permit it, the world has changed too much to make 
the conquest of foreign lands and the establish- 
ment of our forces upon them in defiance of the 
wishes of their inliabitants a practicable proce- 
dure. We have been trying instead to cooperate 
freely and equally, and on a basis of sympathetic 
impartiality, with the nations most directly con- 
cerned. We began with diplomatic support, both 
witliin and outside the United Nations. The out- 
standing example was furnished by Soviet Rus- 
sia's attempt to take over Iranian Azerbaijan in 
1945 and 1916. The United States, as well as the 
United Nations, can take considerable credit for 
the failure of that attempt. Another instance is 
furnished by the Soviet demands upon Turkey in 
1945 and 1946 regarding the Black Sea straits and 
the Kars-Ardahan area of eastern Turkey. We 
stood firmly behind Turkey's resistance to these 
demands. But we soon found that diplomatic 
support was not enough, and we launched our 
economic and military aid programs in Greece and 
Turkey in 1947. 

These programs, and others which came later, 
have contributed greatly to the capacity of the 
Middle East to resist aggressive pressures. They 
were followed by the adherence of Greece and 
Turkey to the North Atlantic Treaty, with the 
result that a firm barrier was established against 
invasion of the JMiddle East from its northwestern 
corner. Unfortunately, this still does not meet 
the need. Defensive strength is needed to the east, 
and it is also essential to have support to the south 



April 4, 1955 

337502—55- 



565 



in order to provide defense in depth. Recogni- 
tion of this led the United States and its Western 
associates to seek in 1951 and 1952 the creation of 
a "Middle East Command" or a "Middle East De- 
fense Organization." These proposals would have 
grouped Middle Eastern States in a defensive ar- 
rangement with the United States, the United 
Kingdom, France, Turkey, and certain British do- 
minions. They failed of acceptance because the 
Middle Eastern States were too preoccupied by 
their local quarrels and by certain then existing 
disputes with the West to be willing to join in a 
general defensive arrangement under Western 
leadership. 

Policy of United States 

In 1953 Secretary of State Dulles visited the 
Middle East. He came to two conclusions : first, 
that most of the Middle Eastern States were un- 
willing as yet to associate themselves closely with 
the West in matters of defense; and second, that 
any sound organization for defense should spring 
from the desires of the peoples and governments 
of the area itself. He further found that certain 
States, in the main those to the north and east, 
which were closest to the source of potential dan- 
ger and therefore most exposed, were most aware 
of the menace, most likely to do something about 
it, and also so situated as to provide the greatest 
measure of protection to the area as a whole. 
These States included Turkey, Iran, Iraq, and 
Pakistan. Secretary Dulles laid down the policy 
that the United States should help to strengthen 
the interrelated defenses of those countries which 
want strength, not as against each other but to 
resist the common threat to all free peoples, in- 
cluding the United States. This remains the pol- 
icy of the American Government. 

What we hope therefore is, first, that all the 
States immediately concerned will come to recog- 
nize that they are in danger from a common source 
and that this overriding danger arises not from 
local attacks by their neighbors in the area but 
from a much greater threat which hangs over 
them as well as the rest of the non-Communist 
world. Secondly, we hope for a realization that 
the first step in meeting this threat should be co- 
operation among themselves for collective defense. 
We in this country have long been convinced that 
such cooperation is the only means of insuring 
ourselves and our friends against engulfment, but 



we cannot impose this belief on others nor can 
we force others into collective arrangements. 
They must themselves arrive at the same belief. 

As they do arrive at this belief, we stand ready 
to encourage their own efforts at cooperation 
among themselves and to help in developing the 
strength they will need to make their cooperation 
most effective. 

Progress Toward Collective Defense 

I have already referred to what has been accom- 
plished by Greece and Turkey. More recently, 
highly significant and encouraging beginnings 
have been made in the pi-ocess of extending the 
framework of collective defense to other parts 
of the Middle East.- Last year, Turkey and 
Pakistan signed, on their own initiative, a treaty 
which provided for cooperation between the two 
countries to promote their mutual security. This 
was followed by the conclusion of a military aid 
agreement between the United States and Paki- 
stan, which in a sense complemented the already 
existing military aid arrangements between the 
United States and Turkey. A little later, Iraq 
manifested its growing recognition of the need for 
area security by concluding a similar military aid 
agreement with the United States. Most recently, 
on February 24, 1955, Turkey and Iraq signed a 
treaty of cooperation for mutual defense. Both 
the Turk-Pakistani and Turk-Iraqi pacts are open 
to the adherence of other like-minded states. 

In the meantime, some of the disputes between 
Middle Eastern States and Western States have 
been resolved. In particular, Britain and Egypt 
have reached agreement on the long-standing 
question of the Suez Canal base; Iran, Britain, 
and the United States have successfully worked 
out a solution to the Iranian oil problem. This 
has opened the way to further expansion of co- 
operative security arrangements. Although they 
are not yet in agreement as to the form it should 
take, I think most of the Middle Eastern States 
are coming to feel the necessity for cooperation 
and that in due course they will associate them- 
selves in one way or another with realistic and ef- 
fective arrangements for the defense of the area. 
The American Government will put no pressure 



' See also "The Development of United States Policy in 
the Near East, South Asia, and Africa During 1954: Part 
III," BULLETIN of Feb. 28, 1954, p. 338. 



566 



Department of Stale Bulletin 



upon them. We prefer that they take their own 
time and make their own decisions. 

You will note that the concept of an area de- 
fensive arrangement in the Middle East is still 
little more than a concept. The new links be- 
tween Turkey and Iraq and Turkey and Pakistan 
are still rather vague and general ; their operating 
meclianisms are yet to be created. Also, they are 
still bilateral rather than regional arrangements. 
The existing treaties between Britain on the one 
hand and Iraq, Jordan, Libya, and Egypt are like- 
wise bilateral. American military assistance 
agreements are in effect only with Turkey, Iran, 
Iraq, and Pakistan. Neither party is committed 
by these aid agreements to any military obliga- 
tions other than the very general ones of refrain- 
ing from aggi-ession and of being prepared to as- 
sist in its own defense and the defense of the free 
world. Pakistan, of course, is a member of the 
Manila Pact, just as Turkey is a member of Nato, 
but these arrangements are directed toward ob- 
jectives other than the collective defense of the 
Middle East. 

I make this point to emphasize the distance that 
has still to be traveled before the Middle East 
can be said to have a defense organization. I also 
make it to reassure those who fear that the United 
States is going too far too fast in building up 
military defenses in an area which has still to 
achieve political and economic stability. We have 
not really gone very far, nor are we, even now, 
moving very fast. 

iLack of Unanimity 

It is inherent in the nature of any development 
of this kind that it must move slowly, especially 
at first. A whole range of problems must be taken 
into account. These include, first and foremost, 
the political attitudes of the countries concerned, 
but they also include their economic situation, 
their existing and potential military strength, and 
the resources which the United States and its as- 
sociates could muster in support. I can assure 
you that the American Government takes all these 
considerations fully into account. We are well 
aware, as I have already pointed out, that there 
is as yet no unanimity among the States of the 
Middle East with regard to the nature of the dan- 
ger they face and the steps needed to meet the 
danger. We are well aware, too, that military 



strength alone is not the answer to their problems, 
not even the problem of area defense. 

They need economic and technical assistance, 
which we and others are providing and intend to 
continue to provide. But progress, in our judg- 
ment, is being made. Political thought in the 
area is evolving, by and large, in the direction 
which we consider sound, and the foundations 
have been laid, in most cases, for the construction 
of sound economies. We do not believe we can 
afford to wait for the solution of all political, eco- 
nomic, and social problems before we look ahead 
toward a solution of the defense problem. The 
world situation does not allow such delay. Fur- 
thermore, we are convinced that the development 
of indigenous defensive strength will itself con- 
tribute to the solution of political problems. It 
will give the peoples of the area greater self- 
confidence as well as greater willingness and abil- 
ity to cooperate in the collective defense of tlie 
area. 

Let me repeat that what we are doing is being 
done with our eyes and minds wide open. We are 
conscious of the strong tensions which exist be- 
tween the Arab States and Israel. We also know 
that there are disputes and divergencies of view 
among other States of the area, even among the 
Arab States themselves. The reaction of some 
Arab States to the conclusion of the recent Turk- 
Iraqi pact has been one evidence of this. We are 
therefore being extremely careful that the con- 
tributions we make to the military strength of the 
area go to States which sincerely intend to use 
them for the purpose of defending themselves and 
their neighbors against aggression and not for any 
aggressive purposes of their own. We insist and 
intend to insist on guaranties to this effect, in 
accordance with the terms of our mutual security 
legislation. 

This legislation requires, among other things, 
that military assistance — 

shall be made available solely to maintain the internal 
security and legitimate self-defense of the recipient na- 
tion, or to permit it to participate in the defense of its 
area or in collective security arrangements and meas- 
ures consistent with the Charter of the United Nations. 
The President shall be satisfied that such equipment and 
materials will not be used to imdertake any act of ag- 
gression against any nation. . . . 

In connection with the military aid agreement 
with Pakistan, President Eisenhower said : "These 



April 4, 1955 



567 



undertakinjis allord adequate assurance to all na- 
tions, regardless of their political orientation and 
whatever their international policies may be, that 
the arms the United States provides for the de- 
fense of the free world will in no way threaten 
their own security. I can say," the President con- 
tinued, "that if our aid to any country, including 
Pakistan, is misused and directed against another 
in aggression I will undertake immediately, in 
accordance with my constitutional authority, ap- 
propriate action both within and without the U.N. 
to thwart such aggression." ^ 

We also believe that the association of Middle 
Eastern States with each other in bilateral or mul- 
tilateral defense arrangements directed against 
aggression from outside the area is, in itself, a 
safeguard against their involvement in aggressive 
moves inside the area. Their very willingness to 
enter into such agreements is an indication that 
their attention is directed in the right direction, 
and their association with other States which are 
more concerned with the world problem than with 
intra-area disputes is bound to exercise an influ- 
ence which can only be beneficial from the point 
of view of area peace and stability. 

It is in this framework, primarily in the con- 
text of collective defense arrangements, that we 
intend to provide military assistance where needed 
to promote the development of sound plans for 
area defense. 

Special Problem of Israel 

What I have said so far applies more or less 
generally to the whole area. It would be unreal- 
istic to pretend, however, that the State of Israel 
does not constitute something of a special factor 
and a special problem in the development of 
Middle East defense. Let us look frankly at the 
facts. They are very clear. On the one hand, in 
the past year or so the Government of Israel has 
made plain its willingness and desire to aline itself 
with the West and to cooperate for the defense 
of tlie Middle East against outside aggression. 
Furthermore, Israel has military forces which 
could contribute to a considerable degree to the 
defense of the area. Looking at these two facts 
alone, it would seem highly logical that Israel 
should be incorporated in a collective defense ar- 
rangement at an early date. But there are other 



'Ibid., Mar. 15, 1054, p. 401. 
568 



facts that must be considered. Much as we de- 
plore it, we must admit that the relations between 
Israel and her neighbors are anything but good. 
They vary from time to time from a state of 
quiescent hostility to a condition almost of open 
warfare. So long as such circumstances prevail, 
there are lacking the necessary foundations for 
political cooperation between Israel and those 
States with which her defense must be linked in 
the long run. In the absence of political coopera- 
tion it is, of course, out of the question to make 
plans involving military cooperation between 
Israeli forces and those of her immediate 
neighbors. 

I hope I need not tell you that the ^\jnerican 
Government is gravely concerned at the existence 
of this state of affairs. We are always concerned 
at the existence of conflict anywhere in the world, 
and we especially regret it in an area such as this, 
where it constitutes a barrier to the proper organi- 
zation of collective defense. The desire and the 
hope of reducing tensions between Israel and her 
neighbors is never out of our minds. AVe under- 
stand the anxiety felt by the people and the Gov- 
ernment of Israel at their continued isolation in 
the area of which thej- are a part. We are doing 
our best to improve relations. It must be real- 
ized that this is complicated bj' the fact that 
Israel's neighbors are themselves afraid of aggres- 
sion on the part of Israel. Every act of violence 
across the frontiers is a setback to progress. The 
problem is difficult, but I am confident a solution 
can be found in time. 

I should like to say here that in my opinion 
Israel as a nation is not in danger, except to the 
extent that all other States in the Near East are in 
danger from the common threat of outside aggi'es- 
sion. Israel is in fact in less danger than some 
others of those States. She is not directly in the 
path of possible Soviet aggression, as are those 
States which Secretary Dulles has called the 
"northern tier." I have already mentioned that 
Israel's armed forces would be capable of contrib- 
uting to area defense against an aggressive great 
power. Those forces are still more capable of pro- 
tecting her against a lesser attack. Relative to 
others in the region, the Israeli military establish- 
ment is highly developed, and it enjojs the advan- 
tage of holding interior lines. 

What is even more important, I do not see evi- 
dence of anj- intent on the part of her neighbors 
to attack Israel. 

Department of Sfafe Bulletin 



In my view, all this means that we can and 
should move forward slowly but steadily toward 
the goal of general Middle East defense, taking 
one step at a time and avoiding hasty action which 
would weaken or bring down, before it is fairly 
begun, the structure which we hope to see created. 

We should continue to let the nations of the 
Middle East take the lead in establishing their 
own cooperative arrangements. We cannot prof- 
itably push any one or more of them into arrange- 
ments which they dislike. We can, however, seek 
to help them along the paths they may choose 
when those run in a direction we consider helpful 
to our mutual security, and we can help to fill gaps 
which may appear in the defense framework as 
it evolves. 

There are many possible forms which a Middle 
East defense arrangement could take. It might 
be a single structure, or it might consist of two or 
more separate but related units. It might be re- 
stricted entirely to States in the area itself, as- 
sisted and supported in some fashion by States 
outside the area, or it might include among its 
members those Western States which have the de- 
sire and ability to work directly for the defense of 
the area. It is too early to make sound forecasts 
as to the character whicli organization for collec- 
tive defense in this region may assume. Never- 
theless, I think it is safe to predict that the con- 
cept of collective defense will take material shape 
in the not-too-distant future and that this will re- 
dound to the benefit of all the States in the Middle 
East as well as the United States. 

FOA Aid to Viet-Nam, 
Cambodia, and Laos 

The Foreign Operations Administration on 
March 9 announced that a $100 million progi-am 
of economic and technical assistance for Viet-Nam, 
Cambodia, and Laos has been approved for the 
year ending June 30, 1955. 

The program includes $45 million for "Opera- 
tion Exodus" — the evacuation and resettlement of 
more than half a million refugees from Com- 
munist-controlled northern Viet-Nam ' — and $55 
million to strengthen the economies of the three 
countries and assist them in withstanding con- 
tinuing Communist pressure. 



Emphasis is on resettlement of refugees; the 
improvement of agi'iculture, education, health and 
sanitation, public administration, and public in- 
formation services; and development of trans- 
portation and communication facilities, industry, 
and natural resources. 

Specific projects are being developed on an ex- 
panded basis through recently established sepa- 
rate FoA missions in each country. The programs 
for the three States, prior to last November, had 
been carried out through the Foa mission in 
Saigon. 

Barter Authority Under 
Agricultural Trade Act 

The White House on March S released to the 
press the following memorandum from J. Lee 
Rankin, Assistant Attorney General, to Gerald 
D. Morgan.. Special Counsel to the President. 

This is in reply to Mr. Shanley's ^ memorandum 
of January 12, 1955, requesting my opinion on 
whether the Agricultural Trade Development and 
Assistance Act of 1954 (Public Law 480, 83d Con- 
gress) authorizes trading, including barter, in 
surplus agricultural commodities, directly or in- 
directly with the Soviet Bloc countries. 

Section 2 of the Act declares it to be "the policy 
of Congress to expand international trade among 
the United States and friendly nations ... to 
make maximum efficient use of surplus agricul- 
tural commodities in furtherance of the foreign 
policy of the United States, and to stimulate and 
facilitate the expansion of foreign trade in agri- 
cultural commodities produced in the United 
States by providing a means whereby surplus 
agricultural commodities in excess of the usual 
marketings of such commodities may be sold 
through private trade chamiels, and foreign cur- 
rencies accepted in payment therefor."' [Emphasis 
supplied by Mr. Eankin.] 

Section 107 of the Act specifically defines 
"friendly nation" as follows : 

As used in this Act, "friendly nation" means any coun- 
try other than (1) the U.S.S.R., or (2) any nation or area 
dominated or controlled hy the foreisn government or 
foreign organization controlling the world Communist 
movement. 



» Bulletin of Feb. 7, 1955, p. 222. 
Apri/ 4, 1955 



^ Bernard M. Slianley, Counsel to the President until 
Feb. 19. His memorandum of Jan. 12 is not printed. 



569 



Section ;)04 of the Act provides : 

The President shall exercise the authority contained 
herein (1) to assist friendly nations to he independent of 
trade with the U.S.S.R. or nations dominated or con- 
trolled by the U.S.S.R. for food, raw materials and mar- 
kets, and (2) to assure that agricultural commodities sold 
or transferred hereunder do not result in increased avail- 
ability of those or lilic commodities to unfriendly nations. 

Wlien tlie definition of tlie term "friendly na- 
tion" is read in conjunction with Section 2 of tlie 
Act and the express direction to the President in 
Section 304, it scarcely seems that Congress could 
have been more explicit in excluding the Soviet 
Bloc countries from the authorized activities with- 
in the declared policy and purposes of the Act. 
I find nothing in the specific sections authorizing 
particular kinds of transactions, in the legislative 
history, or in pertinent provisions of other acts, 
as amended or incorporated by this Act, as here- 
inafter discussed, which alters this conclusion. 

An observation seems appropriate at this point. 
The coverage of the Act as described in Section 
106 is: 

As used in this Act, "surplus agricultural commodity" 
shall mean any agricultural commodity or product thereof, 
class, kind, type, or other specification thereof, produced 
in the United States, either privately or publicly owned, 
which Is or may be reasonably expected to be in excess 
of domestic requirements, adequate carryover, and antici- 
pated exports for dollars, as determined by the Secretary 
of Agriculture. [Emphasis supplied by Mr. Rankin.] 

In this section. Congress has by definition excluded 
from the meaning of the term "surplus agricul- 
tural commodity" as used in the x\ct, anticipated 
exports of agricultural commodities for dollars as 
determined by the Secretary. This would seem to 
eliminate from the intended coverage and prohibi- 
tions of the Act agricultural commodities which 
the Secretary determines, among other things, will 
be exported for dollars and which are so exported. 
I turn now to the Act's specific provisions with 
respect to trading in commodities within its cov- 
erage. Section 101 of the Act, which authorizes 
sales of surplus agricultural commodities for for- 
eign currencies, provides in material part: 

In furtherance of this policy, the President is author- 
ized to negotiate and carry out agreements with friendlii 
nations or organizations of friendly nations to provide for 
the sale of surplus agricultural commodities for foreign 
currencies. In negotiating such agreements the Presi- 
dent shall — 



570 



(d) .seek and secure commitments from particiiiating 
countries tliat will i>revent resale or transshipment to 
other countries, or use for other than domestic purposes, 
of suri)lus agricultural commodities purchased under tliis 
Act, witliout specific approval of the President ; and 

<e) afford any friendly nation the maximum oppor- 
tunity to purchase surplus agricultural commodities from 
the United States, taking into consideration the oppor- 
tunities to achieve the declared policy of this Act and 
to make effective use of the foreign currencies received 
to carry out the purpo.ses of this Act. [Emphasis sup- 
Iilied by Mr. Rankin.] 

As Mr. Shanley indicated in his memorandum, 
the express terms of the authorization of this sec- 
tion would seem to leave no doubt that Congress 
intended and provided that surplus agricultural 
commodities should not be sold directly or indi- 
rectly to Soviet Bloc countries for foreign curren- 
cies. It might be added parenthetically that 
consistently with the declared policy of the Act 
and the express terms of the section, the direction 
of subsection (d) to secure commitments against 
resale or transshipment of commodities sold apart 
from specific approval of the President should 
probably be construed to imply only that such re- 
sales or transshipments would be authorized to 
other friendly nations, not to Soviet Bloc countries 
with the approval of the President. 

This brings me to the specific questions with re- 
spect to barter transactions. The barter pro- 
visions are contained in Sections 302 and 303 of 
the Act. Section 302 amends Section 416 of the 
Agi-icultural Act of 1949 (7 U. S. C. 1431), among 
other things, to establish barter as a priority sur- 
plus agricultural commodity disposal method 
(H. Kept. No. 1776, 83d Cong.. 2d Sess., p. 10). 
The legi.slative purpose in amending the earlier 
act was directed to ends other than carving out 
an exception to the policy of the act limiting its 
operation to trade with friendly nations. This is 
plainly shown by the House Committee's explana- 
tion of the action. (Ibid. pp. 9-10; see to similar 
effect H. Kept. No. 1947 (Conference Report. 83d 
Cong., 2d Sess., p. 9)). Section 303 provides in 
pertinent part : 

Whenever the Secretary has reason to believe that, In 
addition to other authorized methods and means of dis- 
posing of agricultural commodities owned by the Com- 
modity Credit Corporation, there may bo opportunity to 
protect the funds and assets of the Commodity Credit 
Corporation by barter or exchange of such agricultural 
commodities for (a) strategic materials entailing less 
risk of loss through deterioration or substantially less 
storage charges, or (b) materials, goods or equipment 

Department of State Bulletin 



required in connection with foreign economic and military 
aid and assistance programs, or (c) materials or equip- 
ment required in substantial quantities for offshore con- 
struction i)rograms, he is hereby directed to use every 
practicable means, in cooperation with other Government 
agencies, to arrange and make, through private trade 
channels, such barters or exchanges or to utilize the au- 
thority conferred on him by section 4 (h) of the Com- 
modity Credit Corporation Charter Act, as amended, to 
make such barters or exchanges. 

Again both the House Committee Report and Con- 
ference Report indicate that the considerations 
which prompted this provision were divorced from 
any question of relaxation of the general prohibi- 
tion against trading with the Soviet Bloc. The 
House Report explains the provision at p. 10 as 
follows : 

This section implements existing barter authority by 
establishing a policy of encouraging and assisting ex- 
changes of surplus agricultural commodities for strategic 
materials when such an exchange will protect the funds 
and assets of the Commodity Credit Corporation. Most 
agricultural commodities, even those classified as "stor- 
able", deteriorate measurably in storage. In addition, 
storage charges on most agricultural commodities are 
relatively high. Even in the case of grains, for example, 
the storage charges add up to the value of the commodity 
in 8 to 10 years. On many of the perishables, the rate is 
much higher. The Secretary of Agriculture reported to the 
Committee that Ccc is now spending more than $700,000 
per day for the storage of its commodities. 

It would seem to the committee, therefore, to make ex- 
tremely good sense to take advantage of opportunities 
which might present themselves to exchange these com- 
modities which are subject to deterioration and costly to 
store for strategic materials, most of which do not 
deteriorate and which cost relatively little to store. 

Although barter of surplus agricultural commodities for 
critical and strategic materials is sjjecifieally contem- 
plated and authorized by the Agricultural Act of 1949, 
and the Commodity Credit Corporation Charter Act, the 
Department of Agriculture has participated in relatively 
few such transactions and, apparently, had taken an at- 
titude discouraging, rather than encouraging, the making 
of such exchanges. 

Among other deterrents to an effective barter program, 
the Department has maintained the policy of declining to 
accept in trade for its agricultural surplus any strategic 
materials that it did not have an immediate sale for to the 
appropriate Government agency. While not criticizing 
the Department for this attitude (since there was no 
legislative policy statement to guide it) the committee 
believes that the funds and assets of the Ccc can be much 
better protected by exchanging, when the opportunity 
offers, some of its costly to store agricultural surplus for 
nondeteriorating, easily stored strategic materials, even 
though these may have to be held for some time as the 
property of the Ccc. Indeed, to refuse to make such ex- 
changes simply because no Government agency is in a 



position at the moment to buy the strategic materials from 
the Ccc, is to negate the very reason for barter — which is 
an exchange of materials for materials when money with 
which to purchase such materials is imavailable or is less 
useful than materials. 

On the other hand, as we have seen above, sec- 
tion 304, a provision of general application, im- 
mediately following the barter provisions in the 
context of the act, directs in mandatory language 
that "The President shall exercise the authority 
contained herein (1) to assist friendly nations to 
be independent of trade with the U. S. S. R. or 
nations dominated or controlled by the U. S. S. R. 
for food, raw materials and markets, and (2) to 
assure that agricultural commodities sold or trans- 
ferred hereunder do not result in increased avail- 
ability of those or like commodities to unfriendly 
nations." 

The unmistakable thrust of that provision, even 
standing alone, which is not the case, is to inhibit 
any action by the President under the statute 
which does not assist friendly nations to be in- 
dependent of trade with the Soviet Bloc and as- 
sure against increased availability of commodities 
to that Bloc. It seems self-evident that direct or 
indirect barter of surplus agricultural commodi- 
ties with the Soviet Bloc might run afoul of the 
first standard, dependent on the facts, and would 
necessarily conflict with the second. 

Such barter would, therefore, not be authorized 
unless Congress intended to exempt it from the 
application of those standards. But there seems 
no persuasive reason to believe that Congress did 
so intend. It might be suggested that the limita- 
tion of Section 304 is in terms upon the Presi- 
dent's authority under the Act and, hence, should 
not be read as a limitation on the barter authority 
granted by Sections 302 and 303 to the Secretary. 
But in the context of this Act and the subordinate 
relationship of the Secretary to the President, the 
suggestion seems without substantial force. 

It would be unreasonable to suppose that Con- 
gress intended to provide mandatory standards to 
govern the President's exercise of discretion with 
respect to all kinds of transactions authorized by 
the Act in order to effectuate its declared policy, 
but, without saying so plainly, intended to give 
the Secretary, the President's subordinate officer, 
a free hand to frustrate that policy. It would 
seem more reasonable to believe that Congress 
lodged the barter authority under the Act in the 
Secretary because it was in him under cognate 



Aprit 4, 7955 



571 



provisions of other statutes and for practical rea- 
sons of administration, but intended the Secre- 
tary's use of tliat authority to be governed by the 
same legishitive standards provided for the Presi- 
dent. So, too, it miglit be urged that Congress did 
not intend the limitations of Section 304 to apply 
to barter transactions because it did not expressly 
say so. Such a position does not seem tenable on 
the basis of what Congress did say. 

Tlie descriptive language used was "agricul- 
tural commodities sold or transferred hereunder," 
expressed in the disjunctive. It would seem diffi- 
cult reasonably to maintain that commodities 
bartered under the Act were not "transferred 
hereunder" within the meaning of that language. 
Moreover, when considered in relation to the mani- 
fest legislative purpo.se with respect to all other 
trading with the Soviet Bloc the argument would 
seem to be definitely foreclosed. 

For all tlie foregoing reasons, in the absence of 
any specific application of the statute to any par- 
ticular state of fact, it is my opinion that any 
direct or indirect trade, including barter under the 
Act, with the Soviet Bloc, would be prohibited. 
Since the legislative history of the Act indicates 
quite plainly that Congress reexamined delib- 
erately the barter authority theretofore granted 
in Section 416 of the Agricultural Act of 1949 and 
in Section 4 (h) of the Connnodity Credit Cor- 
poration Barter Act, as amended, 15 U. S. C. 714 
(b), in order to conform such authority to the 
])olicies and purpose of this Act, to the extent, 
if any, that the barter provisions of those statutes 
may be in conflict with this Act, it is my view that 
they would be superseded. 



Need for Extending 
Trade Agreements Act 

Stateiiu-nt hy Secretary Dulles'^ 

I appear before your committee to express my 
conviction that the Trade Agreements Act should 
be extended for 3 years by the enactment of H. R. 1. 



' Made before the Senate Committee on Finance on Mar. 
34 (press release 144). For text of a statement made by 
the Secretary l)efore the Ways and Means Committee of 
the House of Representatives concerning H. R. 1 and for 
texts of letters from the President and the Secretary to 
congressional leaders on this subject, see Riilletin of 
Jan. 31, 19.55, p. 171; Mnr. 7. 195,5, p. 388; and Mnr. 14, 
1955, p. 443. 



I do not appear as an expert on tariff matters. 
I depend on others to advise me as to the intrica- 
cies of this highly technical field. I do feel able, 
on my own responsibility, to inform you as to the 
bearing of the pending legislation upon the inter- 
national situation. 

H. R. 1 would continue a policy wliich was in- 
augurated many years ago. The heart of that 
policy is recognition that our foreign trade is a 
matter of international concern and that accord- 
ingly a limited discretion to deal with tariffs 
should be given the President as the person who, 
knowing both domestic and international factors, 
can best judge what will serve the welfare of our 
Nation. 

Under this policy, the United States has pros- 
pered and our economic ties with friendly coun- 
tries have been greatly strengthened. Our com- 
mercial exports and imports have risen to an all- 
time high. 

Today, trade with the United States is vital to 
the economic well-being of most of the free na- 
tions, and especially to our allies. 

If the United States were now to abandon the 
policy which has so well served our own country 
and others, the international repercussions would 
be major and their consequences would be grave. 

The strategy of international communism is to 
divide tlie free nations, so that they can be taken 
over piecemeal. As against that strategj-, the 
United States has espoused the policy of collec- 
tive security. We have sought to develop a spirit 
of partnership as between the free nations, so that 
each will strengthen the other and provide a co- 
hesion which can withstand assaults from with- 
out and within. 

The collective security we seek depends partially 
upon collective military measures. However, the 
menace is as much from subversion as from open 
armed attack, and in any event military arrange- 
ments are never dependable unless they rest on a 
foundation of economic health and mutual respect. 

Our concern for the good health and the respect 
of other free peoples is most of all represented by 
our trade policies. Tliese are far more significant 
than our so-called "aid" policies. Thus, our Trade 
Agreements Act is not a mere i)iece of technical 
domestic legislation. It is a symbol of worldwide 
importance. The Trade Agi-eemcnts Act symbol- 
izes a willingness of the world's greatest economic 
imit to follow a self-interest that is enlightened by 



572 



Department of Sfofe Bu//efin 



a decent regard for others whose destiny has be- 
come inevitably interlocked with our own. 

I do not believe that any Member of Congress 
judges the danger from international communism 
to be past or, indeed, to be lessened. There was 
virtual unanimity in the Congress when it recently 
recognized that the threat from Communist China 
was so grave that it had become appropriate to 
authorize the President to employ the armed forces 
of the United States in the Formosa area.^ 

Within the Soviet Union, the decision has been 
taken to deny the people the consumers' goods they 
badly need, in order that priority should be given 
to war industries. 

Both in Europe and in Asia international Com- 
munist leadership expresses itself in a manner that 
is increasingly threatening. It is seeking with re- 
newed intensity to press issues which could divide 
the free nations. 

I returned last week from Asia encouraged by 
the determination of our Asian friends to remain 
free. But also I returned vividly conscious of the 
massive malevolence represented by Chinese com- 
munism and its determination to extend its dom- 
ination until it is stopped by superior force backed 
by a resolute will. 

The need for allied unity remains great and the 
strains placed on that unity are severe. Under all 
the circumstances, I deem it of the utmost impor- 
tance that the United States should continue the 
present trade agreements policy, which takes ac- 
count of our international relations. 

It is understandable that there is, in the Con- 
gress, some reluctance to delegate to the President 
a discretion the use of which might affect ad- 
versely certain particular business activities. I 
was myself a Senator long enough to appreciate 
the reasons for such concern. Each Senator and 
each Representative properly knows, and is sensi- 
tive to, business and employment conditions within 
liis particular State or District. 

But it is not possible for every Senator and 
Representative, or for the Tariff Commission, to 
mow with intimacy the international implications 
Df our trade policies. Oftentimes, indeed, these 
mplications are so delicate that they cannot be 
publicly discussed without endangering the secu- 
rity interests of the United States. 

One man, and one man alone, is so situated as 
;o have the complete, overall picture. He is the 

' Ihid., Feb. 7, 1955, p. 211. 
\pril 4, J 955 



President of the United States. He comprehends 
both the domestic and international aspects of the 
problem. If the President is not entrusted with 
discretion within the closely prescribed limits con- 
templated by H. E. 1, then that means that the 
tariff policy of the United States will be operated 
without due regard to international considera- 
tions. That will inevitably endanger our Nation. 

I am well aware of the fact that in this situa- 
tion the Department of State plays an unpopular 
role. Each Department concerned with foreign 
trade has a duty to advise with respect to the as- 
pects falling within its particular jurisdiction. 
That leaves it to the State Department to advise 
with reference to the international factors that 
are involved. 

We would all feel happy if the international 
situation were such that international factors 
could safely be ignored and if the United States 
could prudently act with exclusive regard to do- 
mestic factors. 

Even if that happy situation existed, it could, 
nevertheless, be powerfully argued that the Trade 
Agreements Act should be extended, because it 
promotes essential exports of agricultural and 
manufactured goods and consequent gainful em- 
ployment. However, others are more competent 
than I to present that case. My responsibility is 
to advise you that, quite apart from domestic con- 
siderations, major international factors are 
involved. 

Someone must have the duty of presenting this 
aspect of the matter. It is not a pleasurable duty. 
But it is a duty which has to be performed lest 
inadvertently the United States should take ac- 
tion which will lead it into grave peril. 

It is in performance of that duty that I urge 
extension of the Trade Agreements Act by enact- 
ment of H. R. 1. 



Current Legislation on Foreign Policy: 
84th Congress, 1st Session 



Investigation of Technical Assistance and International 
Peace Programs by tbe Senate Committee on Foreign 
Relations. Report to accompany S. Res. 36. S. Rept. 
23, January 28, 1955. 2 pp. 

Special Study Mission to Cuba. Report by Albert P. 
Morano, Connecticut, of the House Committee on For- 
eign Affairs. H. Rept. 22, February 7, 1955. 16 pp. 

Mutual Defense Treaty with the Republic of Cliina. Re- 
port of the Senate Committee on Foreign Relations on 
Executive A. S. Exec. Rept. 2, February 8, 1955. 15 pp. 



573 



Calendar of Meetings ' 

Adjourned During March 1955 

Gatt: 9th Session of the Contracting Parties Geneva Oct. 28-Mar.'7 

U.N. Trusteeship Council: Standing Committee on Petitions . . . . New York Jan. 10-Mar. 15 

U.N. Trusteeship Council: 15th Session New York Jan. 25-Mar. 17 

Ilo Governing Body: 128tb Session (and Committees) Geneva Feb. 21-Mar. 5 

South Pacific Commission: Consultation with U. S. Senior Com- Washington Mar. 2-5 

missioner. 

Frankfort International Fair Frankfort Mar. &-10 

Fag Working Party on Olive Oil Rome Mar. 7-18 

Unicep Executive Board and Program Committee New York Mar. 7-16 

U.N. Economic Commission for Europe: Coal Committee .... Geneva Mar. 8-10 

12th Textile Conference and Industrial Exhibition Calcutta Mar. 8-28 

57th Verona Agricultural Fair Verona Mar. 13-21 

Fag Working Party on Calculation of Future Scales of Contributions . Rome Mar. 14-18 

U.N. EcosGC Population Commission: 8th Session New York Mar. 14-25 

U.N. EcAFE Committee on Industry and Trade: 7th Session . . . . Tokyo Mar. 15-24 

U.N. Economic Commission for Europe: 10th Session Geneva Mar. 15-30 

Inter-American Conference on Social Security: 5th Session .... Caracas Mar. 16-26 

Working Party on Draft Convention for the Protection of Performing Paris Mar. 17-24 

Artists, Manufacturers of Phonograph Records, and Broadcasting 

Organizations. 

In Session as of March 31, 1955 

ICAO Council: 24th Session Montreal Jan. 25- 

IcAO Air Navigation Commission: 18th Session Montreal Jan. 25- 

IcAO Air Transport Committee: 24th Session Montreal Jan. 26- 

Gatt Tariff Negotiations with Japan Geneva Feb. 21- 

U.N. Disarmament Commission: Subcommittee of Five London Feb. 25- 

U.N. Ecosoc Commission on Status of Women: 9th Session . . . New York Mar. 14- 

Unesco Executive Board: 41st Meeting Paris Mar. 21- 

Itu International Radio Consultative Committee (Ccir): Study Brussels Mar. 22- 

Group I. 

Itu International Radio Consultative Committee (Ccir) : Study Brussels Mar. 22- 

Group XI. 

U.N. Economic Commission for Asia and the Far East: 11th Session . Tokyo Mar. 28- 

U.N. Economic and Social Council: 19th Session New York Mar. 29- 

Scheduied Aprii 1-June 30, 1955 

U.N. EcosGC Commission on Human Rights: 11th Session Geneva Apr. 5- 

Fag Asia- Pacific Forestry Commission: 3d Session Tokyo Apr. 9- 

Fag Desert Locust Control Committee: 1st Session Rome Apr. 12- 

International Union of Biological Sciences: 12th General Assembly . Rome Apr. 12- 

IcAG Legal Committee: Subcommittee on Negotiability ofjthe Air Madrid Apr. 12- 

Waybill. &< 

Wmo Executive Committee: 6th Session Geneva Apr. 12- 

33d International Milan Samples Fair Milan Apr. 12- 



' Prepared in the Oflice of International Conferences, United Nations Educational, Scientific and Cultural Or- 

Mar. 25, 19.').''). Asteri.>iks indicate tentative dates and ganization ; Itu, International Telecommunication Union ; 

places. Following is a list of abbreviations : Gatt, Gen- cciR, International Radio Consultative Committee 

eral Agreement on Tariffs and Trade; U.N., United Na- (Comit^ consultatif Internationale des radio eommunica 

tions: Iijo, International Labor Organization; Pao, Pood ». > -nr ttt u m i. i„~:„„i r>.„„„-»„t-„„ . t„„>. 

, . ., ^ ... „ TT .. , „ 1. tions) ; Wmo, World Meteorological Organization; Icbm, 

and Agriculture Organization ; Unicef, United Nations 

ChiUlron-s Fund; Ecosoc, Economic and Social Council; Intergovernmental Committee for European Migration; 

EcAKE, Economic Commission for Asia and the Par East; Paso, Pan American Sanitary Organization; Iasi, Inter 

ICAO, International Civil Aviation Organization ; Unesco, American Statistical Institute. 



574 Department of State Bulletin t 



Calendar of Meetings — Continued 

Scheduled April 1-June 30, 1955 — Continued 

5th International Congress of Onomastic Sciences Salamanca (Spain) .... Apr. 12- 

World Meteorological Organization: 2d Congress Geneva Apr. 14- 

U.N. Trusteeship Council, Committee on Information from Non-Self- New York Apr. 15- 

Governing Territories: 6th Session. 

Fao: 3d Inter-American Meeting on Livestock Production .... Bueno? Aires Apr. 18- 

U.N. International Technical Conference on the Conservation of the Rome Apr. 18- 

Living Resources of the Sea. 

U.N. Kcosoc Commission on Narcotic Drugs: 10th Session .... New York Apr. 18- 

IcEM Executive Committee: 2d Session Geneva Apr. 21- 

7th Liege International Trade Fair Liege (Belgium) Apr. 23- 

Itu Administrative Council: 10th Session Geneva Apr. 23- 

Brussels International Trade Fair Brussels Apr. 24- 

Lyon International Fair Lyon Apr. 24- 

Fag International Poplar Commission: 8th Session Madrid Apr. 25- 

ICAO Meeting of Medical Experts on Hearing and Visual Requirements Paris Apr. 25- 

for Aviation Personnel Licenses. 

Committee of I^xperts to Prepare for International Conference for Re- Lisbon Apr. 25- 

vision of the International Convention on Industrial Property. 

Paso Executive Committee: 25th Meeting Mexico, D.F Apr. 25- 

Ilo Petroleum Committee: 5th Session Caracas Apr. 25- 

8th International Cannes Film Festival Cannes Apr. 26- 

IcEM Council: 2d Session Geneva Apr. 27- 

Inter-American Indian Institute: Meeting of Governing Board . . . Mexico, D.F April- 
British Industries Fair London May 2- 

U.N. Ecosoc Social Commission: 10th Session New York May 2- 

International Oil Exposition Houston May 3- 

U.N. Economic Commission for Europe: Meeting of Steel Committee. Geneva May 3- 

Wmo Executive Committee: 7th Session Geneva May 3- 

Japan International Trade Fair Tokyo May 5- 

U.N. High Commissioner for Refugees, Executive Committee: First Geneva May 10- 

Session. 

West Indian Conference: 6th Session San Juan (Puerto Rico) . . May 10- 

World Health Organization: 8th Assembly Mexico, D.F May 10- 

Paris International Fair Paris May 14- 

Caribbean Commission: 20th Meeting San Juan (Puerto Rico) . . May 16- 

U.N. Economic and Social Council: Resumed 19th Session .... New York May 16- 

Fao Commodity Problems Committee: 25th Session Rome May 23- 

Ilo Governing Body: 129th Session Geneva May 23- 

10th International Mediterranean Fair Palermo May 24- 

[nternational Sports Exhibition Turin May 24- 

33d International Fair of Padua and 4th International Packing Padua May 29- 

Salon. 

Canadian International Trade Fair Toronto May 30- 

5th World Congress on Large Dams Paris May 31- 

tcAO Assembly: 9th Session Montreal May 31- 

LI.N. Economic Commission for Latin America: Committee of the Santiago May- 
Whole. 

Barcelona International Trade Fair Barcelona June 1- 

[lo Annual Conference: 38th Session Geneva June 1- 

Who Executive Boaid: 16th Meeting Mexico, D.F June 1- 

[asi Committee on Statistical Education: 1st Session Quitandinha. June 3- 

[asi Committee on Improvement of National Statistics: 3d Session . Quitandinha. June 3- 

Pao Council: 21st Session Rome June 6- 

U.N. EcAFE Committee on Industry and Trade: 6th Session of the Bangkok June 6- 

Subcommittee on Iron and Steel. 

1th World Petroleum Congress Rome June 6- 

\griculture Show Denbigh (Jamaica). . . . June 8- 

LT.N. Trusteeship Council: 16th Session New York June S-* 

[nter-.\merican Statistical Institute: 3d General Assembly Quitandinha June 9- 

rhird Inter- American Statistical Conference Quitandinha June 9- 

21st International Aeronautical Exhibition Paris June 10- 

CAO Airworthiness Panel: 2d Meeting (Undetermined) June 14- 

nternational Discussion on Combustion Cambridge, Mass. .... June 15- 

tnternational Cotton Advisory Committee: 14th Plenary Meeting. . Paris June 20- 

Lfnited Nations: 10th Anniversary Commemorative Meeting .... San Francisco June 20- 

[nternational Statistical Institute: 29th Session Quitandinha June 24— 

[nternational Commission for Northwest Atlantic Fisheries: 5th Ottawa June - 

Annual Meeting, 

[nternational Technical Conference on Lighthouses and Other Aids to The Hague June - 

Navigation. 



4pn7 4, 1955 575 



U.S. Delegations to 
International Conferences 

U.N, Commission on Human Rights 

The Department of State announced on March 
24 (press release 166) that Mrs. Oswald B. Lord, 
the U.S. representative on the United Nations 
Commission on Human Rig^hts, will head the U.S. 
Delegation to the 11th session of the Commission, 
which is scheduled to meet at Geneva, Switzer- 
land, from April 5 to April 30. 

Philip Halpern, Associate Justice of the Ap- 
pellate Division of the Supreme Court of New 
York State, will serve as principal adviser. Ad- 
ditional advisers will be James F. Green, Office of 
International Economic and Social Aifairs, and 
Warren E. Hewitt, Office of the Legal Adviser, 
Department of State. 

Among the 20 items on the provisional agenda 
for the 11th session of the Commission is one on 
"Development of the work of the United Nations 
for wider observance of, and respect for, human 
rights and fundamental freedoms throughout the 
world." This item is of particular interest to the 
United States, since under it three draft resolu- 
tions proposed by the U.S. representative at the 
1953 session of the Commission will be considered. 
These three draft resolutions provide for the prep- 
aration of biennial reports by member states on 
progress achieved on human rights, for the initia- 
tion of a series of studies on specific aspects of 
human rights on a worldwide basis, and for tech- 
nical assistance in the field of human rights. 

Another subject that will be of considerable in- 
terest at the meeting will be the study of principles 
of self-determination. 



Current U.N. Documents: 
A Selected Bibliography 

Security Council 

Letter Dated 11 October 1954 from the Representative of 
the United States of America Addressed to the Presi- 
dent of the Security Council. S/3304, October 12, 
19.54. 15 pp. mimeo. 



' Printed materials may he secured in the United States 
from the International Documents Service, Columbia 
University Press, 2!HiO Proadway, New Yorlc 27, N. Y. 
Other materials (mimcoKraphed or proces-sed documents) 
may he consulted at certain designated libraries in the 
United States. 



576 



Report by the Chief of Staff of the Truce Supervisior 
Organization to the Secretary-General on the Inei 
dents Betvpeen Egypt and Israel, Particularly in th< 
Area of the Gaza Strip. S/.3.S19, November 16, 1954. 
20 pp. mimeo. 

Report by the Chief of Staff of the Truce Supervisior 
Organization to the Secretary-General Concerninj; 
the SS. Bat GaUm. S/3323, November 29, 1954. V, 
pp. mimeo. 

Letter Dated 30 November 19.54 from the Representativt 
of Israel Addressed to the President of the Securitj 
Council. S/3.325, December 1, 19.54. 1 p. mimeo. 

Letter Dated 14 December 1954 from the Permanent Rep 
resentative of Syria to the United Nations, Addressee 
to the President of the Security Council. S/3330 
December 14, 19.54. 1 p. mimeo. 

Letter Dated 5 January 1955 from the Representative oi 
Saudi Arabia Addressed to the President of the 
Security Council. S/3341, January 5, 1955. 3 pp 
mimeo. 

Letter Dated 12 January 1955 from the Chairman of the 
Council of the Organization of American States Ad 
dres.sed to the Secretary-General. S/3345, Januarj 
15,19.55. 3 pp. mimeo. 

Letter Dated 15 January 1955 from the Chairman of th«" 
Council of the Organization of American States Ad 
dressed to the Secretary-General. S/3347, Januarj 
17, 19.55. 7 pp. mimeo. 

Letter Dated 13 January 19.55 from the Chairman of thf 
Council of the Organization of American States Ad 
dressed to the Secretary-General. S/3348, Januarj 
18, 1955. 2 pp. mimeo. 

Letter Dated 17 January 1955 from the Chairman of tht 
Council of the Organization of American States Ad 
dressed to the Secretary-General. S/3349, Januarj 
18, 1955. 50 pp. mimeo. 




Current Actions 

MULTILATERAL 

War 

Geneva convention relative to treatment of prisoners of 

war ; 
Geneva convention for amelioration of the condition of 

the wounded and sick in armed forces in the field ; 
Geneva convention for amelioration of the condition of 

wounded, sick and shipwrecked members of armed 

forces at sea ; 
Geneva convention relative to protection of civilian per- 
sons in time of war. 

Dated at Geneva August 12, 1949. Entered into force 
October 21, 1950.' 

Rntification deposited: Finland, February 22, 1955. 

Weather Stations 

Agreement on North Atlantic Ocean Stations. Dated at 
Paris February 25, 1954. 
Acceptances deposited: United Kingdom, February 1, 

1955 ; Israel, February 8, 1955. 
Entered into force: February 1, 1955. 



'Not in force for the United States. 



Department of State Bulletin 



Agreement on Organization for Trade Cooperation and 
Amendments to General Agreement on Tariffs and Trade 



DEPARTMENT ANNOUNCEMENT 

Press release 155 dated Marcli 21 

Assistant Secretary of State Samuel C. Waugh 
3n March 21 signed on behalf of the United States 
at Geneva, Switzerland, the documents incorpo- 
rating the results of the review of the General 
Agi'eement on Tarili's and Trade (Gatt).^ The 
Gatt is an international trade agreement adhered 
to by 34 countries. 

The most important of the documents is an 
Agreement establishing an Organization for Trade 
L'i>t)peration to administer the Gatt. Mr. 
\A'augh's signature of the agi'eement was condi- 
tional on congressional approval of U.S. mem- 
bership in the Organization. 

In addition to the agreement establishing the 
( ) 10 Air. "Waugh also signed several protocols 
amending the trade rules contained in the General 
Agreement itself. The Department is preparing 
and plans shortly to publish the texts of the 
amendments showing their relationshiiJ to the 
General Agreement on Tariffs and Trade. 

The agreement on the Organization for Trade 
Cooperation is intended primarily to provide 
permanent arrangements for the administration 
of the Gatt. The negotiation of the Otc agree- 
ment was a fulfillment of that part of the Presi- 
dent's message to the Congress on March 30, 1954, 
in which he said the United States would seek the 
renegotiation of the Gatt's organizational provi- 
sions and that he would submit them to the Con- 
gress for its approval.- 

Under the new arrangements, functions for- 
merly exercised jointly by the countries party to 
the agreement, in their informal periodic meet- 
ings, would be transferred to the Organization for 
Trade Cooperation. In addition, the Organiza- 



' For a summary of the business session at the Geneva 
Conference, see Bulletin of Mar. 21, 1955, p. 495. 
Ibid., Apr. 19, 1954, p. 604. 



tion would be empowered to sponsor international 
trade negotiations and to serve as an intergov- 
ernmental forum for the discussion and solution 
of other questions relating to international trade. 
The Organization's structure would include an 
assembly, consisting of all the countries party to 
the Gatt. 

There would also be an executive committee to 
which the assembly would delegate powers to han- 
dle problems arising between sessions of the as- 
sembly. Under the criteria for election to the exec- 
utive committee, which will consist of 17 members, 
the United States is assured of a permanent seat 
on the committee. 

The establisliment of the Otc constitutes recog- 
nition by countries representing more than SO jjer- 
cent of the world's trade that exj^ansion of inter- 
national trade requires cooperative international 
action to remove trade barriers. The creation of 
a permanent body to administer the Gatt would 
also make possible the better enforcement of the 
trade rules protecting the more than 50,000 tariff 
concessions that have been negotiated and incor- 
porated in the agreement. The Otc would also 
facilitate settlement of trade disputes which could 
give rise to international tensions in the free world. 

Review of GATT 

The Geneva Conference reaffirmed the basic 
objectives and obligations included in the Gatt, 
including the principle of nondiscrimination in 
international trade. The general prohibition 
against the use of quantitative restrictions on im- 
ports was also confirmed. 

One of the major achievements of the Confer- 
ence was agreement to extend the assured life of 
the tariff concessions beyond June 30, 1955, the 
present expiration date. The assured life of the 
concessions would be extended to December 31, 
1957. Provisions were also written into the agree- 



April 4, 1955 



577 



ment for the future automatic continuance of the 
concessions for 3-year periods after December 31, 
1957. Arrangements wei-e made to allow in special 
circumstances the renegotiation of concessions 
during this period. 

Ga'it provisions dealing with the restrictions 
which a countiy may impose in order to protect 
its monetary reserves are of particular interest to 
the United States because of its important export 
trade. Although the existing rules have proved 
to be generally satisfactory during the past 7 years, 
it was felt that they could be simplified and fur- 
ther strengthened in the light of the improvements 
that had taken place in the international payments 
position of many of the Gait countries. The 
changes made at Geneva were primarily in the di- 
rectioiT of simplifying such rules and in improving 
procedures for their enforcement. It is now en- 
visaged that shortly after the entry into force of 
the proposed Gatt amendments a general review 
■will be undertaken of all the import restrictions 
maintained by Gatt countries to protect their in- 
ternational payments position. After this review 
the restrictions maintained by the economically 
developed countries would be scrutinized each 
year by the Organization. Those maintained by 
the economically underdeveloped countries would 
be reviewed biennially. 

During these reviews the countries maintaining 
the restrictions would be required to justify their 
retention. It is expected that the provisions for 
regular examination will encourage the removal 
of restrictions as the international payments 
situation improves. 

Balance-of-Payments Provisions 

In connection with the review of the balance- 
of-payments provisions of the Gatt, it was recog- 
nized that some countries might experience severe 
difficulties in certain of their industries or 
branches of agriculture if what they referred to 
as their "hard core" import controls were elimi- 
nated too abruptly. These are controls which, 
while originally imposed for balance-of-payments 
reasons, provided incidental protection to certain 
industries. Their sudden removal could create 
severe economic and social problems for particidar 
countries. Accordingly, it was decided at Geneva 
that requests from these countries for a temporary 
waiver from the obligation to eliminate quantita- 
tive restrictions when the balance-of-payments 

578 



justification for them no longer existed would 
receive sympathetic consideration on a case-by- 
case basis. The waiver would be subject to con- 
ditions and limitations determined by the con- 
tracting parties, and the country receiving it 
would be required to eliminate its '"hard core" re- 
striction over a comparatively short period of 
time, not to exceed 5 yeare. The country receiving 
the waiver would also be required to report an- 
nually on the progress made toward such elimina- 
tion. 

By separate decision a waiver was granted 
which nuikes it possible for the United States to 
appl}' import restrictions required under section 
22 of the Agi'icultural Adjustment Act, as 
amended, notwithstanding certain provisions of 
the agreement with which such restrictions maj' 
occasionally be in conflict. Under the terms of the 
waiver the United States will submit an annual 
report to the contracting parties of actions taken 
under the waiver. 

It was recognized that flexibility in the agree- 
ment would be necessary to accommodate the desire 
of underdeveloped countries to promote their in- 
dustrialization consistently M'ith the Gatt. The 
existing GAT'r article dealing with this problem 
was almost completely rewritten, and the result 
is a new article which would permit underdevel- 
oped countries greater flexibility in modifying 
tariff rates and in imposing other restrictive meas- 
ures when necessary for economic development. 
Provision was also made in this article for the 
Organization to assure that the interests of other 
Gatt countries which might be affected by such 
actions were adequately safeguarded. 

A resolution was passed recommending that 
countries endeavor to create conditions wliich 
would promote the flow of international capital 
between them, having regard in particular to the 
importance of providing for protection of existing 
and future investment, for avoiding double taxa- 
tion, and for facilitating the transfer of earnings 
on foreign investments. 

Attention was also directed to the problem of 
export subsidies. New provisions were formu- 
lated that woidd require Gatt countries not to use 
export subsidies on primary pi'oducts so as to 
obtain for themselves more than a fair share of 
world trade. In the field of nonprimary products 
no new or increased export subsidies would be 
permitted under the amended Gatt, and a reexam- 

Deparlment of Sfafe Bu//ef/n 



iiiiition of the iJroblem would be held before the 
end of 1957 to determine whether existing export 
subsidies on nonpriniai-y commodities could be 
abolished or whether the standstill could be ex- 
tended for a further period. The present Gatt 
provisions simply require coimtries to submit 
reports on their subsidies to the contracting 
parties. 

A resolution was also adopted providing that 
any country party to the agreement which desires 
to dispose of agricultural surpluses should en- 
deavor to avoid undue disruption of the world 
market in the commodities concerned. The reso- 
lution also recommends that countries disposing 
of such surpluses consult regarding their disjaosal 
with other principal suppliers of the commodities 
in order to contribute to the orderly liquidation of 
such surpluses. They also recommended that 
whenever practicable a Gatt country desiring to 
liquidate a substantial quantity of strategic stock- 
piles should give advance notice of its intention to 
do so and consult with any other Gatt country 
which considers itself to be substantially affected 
by the proposed liquidation. 

The results of the Gatt review reflect the 
acliievement of the objectives which the United 
States had in the Conference. In accordance with 
the President's message to the Congi'ess of March 
30, 1954, there has emerged a more effective instru- 
ment for the development of a workable and 
mutually advantageous system of world trade. 
Substantial improvements have been made in the 
Gatt, and a permanent organization to apply the 
Gatt has been developed on the basis of the expe- 
rience of the past 7 years. The Conference dem- 
onstrated once again the strong interest and desire 
which the United States and other countries have 
in dealing with their trade problems on a coopera- 
tive basis. 



TEXT OF AGREEMENT ON ORGANIZATION 
FOR TRADE COOPERATION 

PART I— GENERAL 

Article 1 — Establishment 

The Organization for Trade Cooperation (hereinafter 
referred to as "the Organization") is hereby established 
to further, as provided for in the General Agreement and 
herein, tie achievement of the purposes and objectives set 
forth in tlie General Agreement on Tariffs and Trade 
(herein referred to as "the General Agreement"). 



Article 2 — Metnbership 

The Members of the Organization shall be the contract- 
ing parties to the General Agreement. Governments which 
become or cease to be contracting parties to the General 
Agreement shall become or cease to be Members of the 
Organization. The Organization may, by a two-thirds 
majority of the votes cast, invite governments which are 
not or which cease to be contracting parties to the General 
Agreement to participate in such activities of the Organ- 
ization and on such terms as it shall decide; Provided 
that in no case shall such participation involve the right 
to vote or to be counted in determining the fulfilment of 
the relevant voting requirements when the Organization 
is exercising any function relating directly to the General 
Agreement. 

Article 3 — Functions 

(a) The Organization shall administer the General 
Agreement and generally facilitate the operation of that 
Agreement. 

(b) In addition, the Organization shall have the follow- 
ing functions: 

(i) to facilitate intergovernmental consultations on 
questions relating to international trade; 

(ii) to sponsor international trade negotiations; 

(iii) to study questions of international trade and 
commercial policy and, where appropriate, make 
recommendations thereon ; 

(iv) to collect, analyse and publish information and 
statistical data relating to international trade 
and commercial policy, due regard being paid 
to the activities in this field of other interna- 
tional bodies. 

(c) The Organization shall, in carrying out these func- 
tions, endeavour to give full effect to tlie provisions of 
Article 1 of this Agreement. 

(d) The Organization shall have no authority to amend 
the provisions of the General Agreement ; no decision or 
other action of the Assembly or any subsidiary body of 
the Organization shaU have the effect of imposing on a 
Member any new obligation which the Member has not 
specifically agreed to undertal^e. 

PART II— STRUCTURE AND ADMINISTRATION OF 
THE ORGANIZATION 

Article 4 — Structure in General 

The Organization shall have an Assembly, an Executive 
Committee and a Secretariat. 

Article S — The Assembly 

(a) The Assembly shall consist of aU the Members of 
the Organization. 

(b) It shall be the responsibility of the Assembly to 
carry out the functions of the Organization. 

(c) The Assembly shall determine the seat of the 
Organization. 

(d) The Assembly shall meet in regular annual session 
and In such special sessions as may be convened in accord- 
ance with the rules of procedure. 



Aprii 4, 7955 



579 



(e) The Assembly shall establish its own rules of pro- 
cedure and shall approve the rules of procedure of the 
Executive Committee and of any other subsidiary body. 

Article 6 — The Executive Committee 

(a) The Executive Committee shall consist of seven- 
teen Members of the Organization elected periodically by 
the Assembly. Each election shall be for a single term 
and each Member shall be eligible for re-election. In such 
elections, the Assembly shall be guided by the following 
criteria : 

(i) the Executive Committee shall include the five 
members of chief economic importance, in the 
determination of which particular regard shall 
be paid to their shares in international trade ; 
(11) the Executive Committee shall be representative 
of the broad geographical areas to which the 
Members belong; 
(iii) the Executive Committee shall be representative 
of different degrees of economic development, 
different types of economies and different eco- 
nomic interests. 

(b) The Executive Committee shall exercise the powers 
and perform the duties assigned to it by the Assembly by 
a ma.1ority of two-thirds of the votes cast. Decisions or 
recommendations of the Executive Committee shall be 
subject to a right of appeal to the Assembly by any Mem- 
ber in accordance with rules to be prescribed by the 
Assembly. 

(c) Any Member of the Organization which is not a 
member of the Executive Committee shall be entitled to 
participate, without the right to vote, in the discussion by 
the Executive Committee of any matter of concern to it. 

Article 7 — The Secretariat 

(a) The Assembly shall appoint a Director-General as 
chief administrative officer of the Organization. The 
powers, duties, conditions of service and term of office of 
the Director-General shall conform to regulations ap- 
proved by the Assembly. 

(b) The Director-General or his representative shall be 
entitled to participate, without the right to vote, in all 
meetings of the Assembly and subsidiary bodies of the 
Organization. 

(c) Tlie Director-General sliall appoint the members of 
the staff, and shall fix their duties and conditions of serv- 
ice in accordance with regulations approved by the 
Assembly. 

(d) The selection of the members of the staff shall as 
far as possible be made on a wide geographical basis and 
witli due regard to the various types of economy repre- 
sented by Member countries. The paramount considera- 
tion in the selection of candidates and in determining the 
conditions of service of the staff shall be the necessity 
of securing the liighest standards of elTiciency, comi)etence, 
impartiality and integi'ity. 

(e) The resiwnsibilities of the Director-General and of 
the members of the staff shall be exclusively international 
in character. In the discliarge of their duties, they shall 
not seek or receive instructions from any government or 
from any other authority external to the Organization. 



They shall refrain from any action which might nlUi t 
on tlieir positions as international officials. The Memliers 
shall re.spect the international character of the respcmsi- 
bilities of these jiersons and shall not seek to influence 
them in the discharge of their duties. 

Article 8 — Voting 

(a) At meetings of the Assembly each Member of the 
Organization shall be entitled to have one vote and, ex- 
cept as otherwise provided for in the General Agreement 
or in this Agreement, decisions of the Assembly shall be 
taken by a majority of the votes cast. 

(b) Each member of the Executive Committee and of 
other subsidiary bodies shall have one vote therein ; Pro- 
vided that the rules of procedure may re<iuire that parties 
to a dispute shall abstain from voting. 

Article 9 — Budget and Contributions 

( a ) Tlie Director-General shall present to the Assembly, 
through the Executive Committee, the annual budget 
estimates and financial statement of the Organization. 
The Assembly shall approve the accounts and the budget. 

(b) The Assembly shall apportion the expenditures of 
the Organization among the Members, in accordance with 
a scale of contributions to be fixed by the Assembly, and 
each Member shall contribute promptly to the Organiza- 
tion its share of these expenditures. 

(c) If a Member is in arrears in the payment of its 
contributions by an amount which equals or exceeds the 
amount of contributions due from it in respect of the 
preceding two completed financial years, the Member 
shall have no vote, and sliall not be counted in the 
determining of the fulfilment of the relevant voting 
requirements, in the organs of the Organization. If the 
Assembly is satisfied that the failure to pay is due to 
circumstances beyond the control of the Member, it may, 
nevertlieless, permit such a Member to vote, and then such 
Member shall be counted accordingly. 

Article 10— Status 

(a) The Organization shall have legal iiersonality. 

(1)) The Organization shall enjoy in the territory of 
each of the Members such legal capacity, privileges and 
immunities as may be necessary for the exercise of its 
functions. 

(c) The representatives of the Members, and the oflS- 
cials of the Organization shall similarly enjoy such privi- 
leges and immunities as may be necessary for the inde- 
pendent exercise of their functions in connexion with the 
Organization. 

(d) The privileges and immunities to be accordetl by 
a Member to the Organization, to its officials and to the 
representatives of its Members shall be similar to those 
accorded by that Member to specialized agencies of the 
United Nations, to their officials and to the representa- 
tives of their members, under the Convention on the Privi- 
leges and Immunities of the Specialized Agencies, or under 
similar arrangements. 

Article 11 — Relations with other Organizations 

(a) The Organization shall make arrangements with 
intergovernmental bodies and agencies which have related 
responsibilities to provide for effective cooperation and 



580 



Department of Stale Bulletin 



tlii> avoidance of unnecessary duplication of activities. 
( b ) In pursuance of tlie provisions of the preceding par- 
agraph, the Organization may, by an agreement approved 
Ijy the Assembly, be brought into relationship with the 
L'nitfd Nations, as one of the specialized agencies referred 
to in Article 57 of the Charter of the United Nations. 

( c) The Organization may make suitable arrangements 
for consultation and cooperation with non-governmental 

irganizations concerned with matters within the scope of 

he Organization. 

'ART III— SPECIAL PROVISIONS RELATING TO 

the administration of the general 

A(;reement 

Irticle 12 — Administration in Oeneral 

The Organization shall give effect to those provisions of 
he General Agreement which provide for action by the 
)rganization, and shall carry out such other activities in 
elation to the General Agreement which involve joint 
ction. This shall include the taking of decisions, the 
ponsorship of negotiations and consultations, the conduct 
f studies, the circulation of proposals and the receipt of 
eports, in any case in which such action is required or 
ppropriate to carry out the puri)oses of the General 
igreement. 

rticle IS — Waivers in Exceptional Ciroumstances 
In exceptional circumstances, not elsewhere provided 
)r in this Agreement, nor provided for in the General 
,1,'rtement, the Assembly may waive an obligation im- 
I'sed upon a contracting party by the General Agree- 
lent ; Provided that any such decision shall be approved 
y a two-thirds majority of the votes cast and that such 
lajority shall comprise more than half of the Members, 
he Assembly may al.so by such a vote (i) define certain 
itei'ories of exceptional circumstances to which other 
"tin^' requirements shall apply for the waiver of obliga- 
ous imposed by the General Agreement upon a con- 
•acting party thereto, and (ii) prescribe such criteria 
s may be necessary for the application of this Article. 

rticle H — Nullification and Impairment 

(a) If a claim that a benefit accruing directly or iii- 
irectly under the General Agreement is being nullified or 
npalred, or that the attainment of any objective of that 
greement is being impeded, is referred to the Organiza- 
on in accordance with the provisions of that Agreement, 
le Organization shall promptly investigate the matter 
Qd shall make appropriate recommendations to the con- 
•acting parties to the General Agreement which it con- 
ders to be concerned, or give a ruling on the matter, as 
ppropriate. The Organization may consult with con- 
acting parties, with the Economic and Social Council of 
le United Nations, and with any appropriate intergov- 
•nmental organization in cases where it considers such 
msultation necessary. 

(b) If the Organization considers that the circum- 
ances are serious enough to justify such action, it may 
ithorize a contracting party or parties to suspend the 
)plicatlon to any other contracting party or parties of 
ich concessions or other obligations under the General 

ipri/ 4, 1955 



Agreement as it determines to be appropriate in the cir- 
cumstances. If the application to any contracting party 
of any concession or other obligation is in fact su.spended, 
that contracting party shall then be free, not later than 
sixty days after such action is taken, to give written 
notice to the Director-General of tie Organization of its 
intention to withdraw from the General Agreement and 
such withdrawal shall take effect on the sixtieth day 
following the day on which such notice is received by him. 

Article 15 — Continued Application of Provisions of this 
Part 

The Members shall not, acting as contracting parties to 
the General Agreement, amend the General Agreement so 
as to provide therein for procedures, other than consulta- 
tion, negotiation or recommendation, applicable to the 
general situations to which Articles 13 and 14 relate. 

PART IV— OTHER PROVISIONS 

Article 16 — Amendments 

Amendments to this Agreement shall become effective, 
in respect of those Members which accept them, upon 
acceptance by two-thirds of the Members of the Organ- 
ization and thereafter in respect of each other Member 
upon acceptance by it. 

Article 17 — Entry into Force 

(a) This Agreement shall be deposited, subject to the 
provisions of Article 21, with the Director-General of the 
Organization. 

(b) This Agreement shall be opened at Geneva on 10 
March 1955 for acceptance, by signature or otherwise, by 
contracting parties to the General Agreement and by any 
other government which has, in accordance with such 
rules of procedure as may be established by the Organ- 
ization, notified the Director-General of its intention to 
accede. 

(c) Without prejudice to the principle laid down in 
Article 2, this Agreement shall enter into force, as among 
those governments which are then contracting parties to 
the General Agreement and which have accepted this 
Agreement, on the thirtieth day following the day on 
which it has been accepted by governments named in the 
Annex to this Agreement the territories of which account 
for 85 per centum of the total external trade of the terri- 
tories of such governments, computed in accordance with 
the appropriate column of percenta;;e set forth therein. 
This Agreement shall enter into force for each other gov- 
ernment which is a contracting party to the General 
Agreement on the thirtieth day following the day on 
which it has been accepted thereby. It shall enter into 
force for each other government which has accepted it 
when such government accedes to the General Agreement. 

Article 18 — Notification and Registration 

(a) The Director-General of the Organization shall 
promptly furnish a certified copy of this Agreement and 
a notification of its entry into force, and of each ac- 
ceptance thereof, to each contracting party to the General 
Agreement. 

(b) This Agreement shall be registered in accordance 



581 



with the provisions of Article 102 of the Charter of the 
United Nations. 

PART V— TRANSITIONAL PROVISIONS 

Article 19 — Relation to Amendments to the General 
Agreement 
If this Afrreenient enters Into force before the entry 
into force of amendments to tlie General Agreement con- 
taimnl in the Protocol of Organizational Amendments to 
the General Ajn-eement on Tariffs and Trade dated 10 
March ldr>5, this Agreement shall, until the entry into 
force of sucli amendments, be applied as if all references 
in the General Agreement to "the CONTRACTING PAR- 
TIES" were references to the Organization. 

Article 20 — Provisional Application 

Without prejudice to the principle laid down in Article 
2, if by 1') November 1955 this Agreement shall not have 
entered into force pursuant to paragraph (c) of Article 17, 
those governments, being contracting parties to the Gen- 
eral Agreement, whicli are prepared to do so may never- 
theless decide to apply it; Provided that the territories 
of such governments account for the percentage of trade 
required for the entry into force of this Agreement under 
paragraph (e) of Article 17. 

Article 21 — Temporary Ej-ercise of Depository FunctUms 

Pending the entry into force of this Agreement, the 
title "Director-General of the Organization" in paragraph 
(b) of Article 14, paragraphs (a) and (b) of Article 17 
and paragraph (a) of Article IS, shall read "Executive 
Secretary to the CONTRACTING PARTIES to the Gen- 
eral Agreement". 

In Witness Whereof the respective representatives, 
duly authorized to that effect, have signed the present 
Agreement. 

Done at Geneva, in a single copy, in the English and 
French languages, both texts authentic, this tenth day of 
March,* one thousand nine hundred and fifty-five. 

ANNEX— PERCENTAGE SHARES OF TOTAL EXTER- 
NAL TRADE TO BE USED FOR THE PURPOSE OF 
MAKING THE DETERMINATION REFERRED TO 
IN ARTICLE 17 

(based on the average of 1949-1953) 

If, prior to the accession of the Government of Japan 
to the General Agreement, tlie present Agreement has been 
accepted by contracting parties the external trade of which 
under column I accounts for the percentage of such trade 
specified in paragraph (c) of Article 17, column I shall be 
applicable for the purposes of that paragraph. If the 
present Agreement has not l)een so accepted prior to the 
accession of the Government of Japan, column II shall be 
applicable for the purposes of that paragraph. 



• 


Column I 

(Contract- 
ing parties 
on 1 March 
1955) 


Column II 
(Contract- 
ing parties 
on 1 March 
1955 and 
Japan) 




3. 1 
0.9 
4.3 
2.5 
0.3 
6.7 
0. 5 

0. 6 

1. 1 
1.4 
1.4 
0. 1 
1.0 
8.7 
5.3 
0.4 

0. 1 
2.4 
1.3 
2.9 
4.7 

1. 

0. 1 

1. 1 
0. 9 
0.4 
0. 6 
2.5 
0. 6 
1.8 

20.3 

20. 6 

0.4 


3. 




0.8 


Belgium-Luxemburg 


4. 2 
2. 4 




0. 3 




6. 5 




0. 5 


Chile - 


0. 


Cuba - 


1. 1 


Czechoslovakia .- 


1.4 

1. 4 


Dominican Republic 


0. 1 

1. 




8. 5 


Germany, Federal Republic of. . 


5.2 
0.4 


Haiti 


0. I 

2.4 




1.3 


Italv - --- 


2.8 


Netherlands, Kingdom of the 


4. 6 
1.0 




0. 1 




1. 1 




0. 8 




0. 4 


Rhodesia and Nyasaland 


0.6 
2.4 


Turkey - 


0. 6 




1. 8 




19. 8 


United States of America 


20. 1 
0. 4 


Japan _- 


2. 3 










100.0 


100.0 



Note: These percentages have been computed taking 
into account the trade of all territories in respect of which 
the General Agreement on Tariffs and Trade is applied. 



FOREIGN SERVICE 



♦This document signed by the United States ad referen- 
dum on March 21, 1955. 



Confirmations 

The Senate on March 22 confirmed Homer Ferguson to 
be Ambassador to the Republic of the Philippines. 

The Senate on March 23 confirmed Ellis O. Briggs to be 
Ambassador to Peru. 

The Senate on March 23 confirmed William S. B. Lacy 
to be Ambassador to the Republic of Korea. 



582 



Department of State BuHet'm 



April 4, 1955 Index 

Aericniture. Barter Authority Under Agricultural Trade 

Act (text of memorandum) 569 

Atomic Energy. Man's Benefits Prom the Atom (Pat- 
terson) 553 

Anstralia 

Visit of Prime Minister Menzies of Australia (Murphy, 

Menzies) 559 

World Bank Announces Loan of ?54.5 Million to Australia . 562 
Cambodia. FOA Aid to Vlet-Nam, Cambodia, and Laos . . 569 
Canada. Regulating Water Levels on Lake Ontario (joint 

statement) 563 

China 

An Estimate of Chinese Communist Intentions (Dulles) . 551 
Supreme Court Decision on Sovereign Immunity .... 557 
Commnnism. An Estimate of Chinese Communist Inten- 
tions (Dulles) 551 

Consress, The 

Current Legislation 573 

Need for Extending Trade Agreements Act (Dulles) . . . 572 
Economic Affairs 

Agreement on Organization for Trade Cooperation and 
Amendments to General Agreement on Tariffs and 

Trade (text of agreement) 577 

Barter Authority Under Agricultural Trade Act (text of 

memorandum) 569 

Department's Views on ECE Oil Study 558 

Need for Extending Trade Agreements Act (Dulles) . . . 572 
Supreme Court Decisloii on Sovereign Immunity . . 557 

World Bank Announces Loan of $54.5 Million to Australia . 562 
Educational Exchange. Man's Benefits From the Atom 

(Patterson) 553 

Europe. Department's Views on ECE Oil Study .... 558 
Foreign Service. Confirmations (Briggs, Ferguson, Lacy) . 582 
Hungary. Bonds of Sympathy Between U.S. and Hungar- 
ian People (Hoover) 558 

International Organizations and Meetings 

Calendar of Meetings 574 

U.S. Delegation to U.N. Commission on Human Rights . . 576 

Military Affairs 

London Discussions on Disarmament (Dulles) .... 557 
Special Assistant to the President for Developing Disarma- 
ment Policy (Eisenhower) 556 

Mutual Security 

FO.V Aid to Viet-Nam, Cambodia, and Laos 569 

Middle East Defense (Jernegau) 564 

Near East. Middle East Defense (Jernegan) 564 

Presidential Documents. Special Assistant to the President 

for Developing Disarmament Policy 556 

Treaty Information 

Agreement on Organization for Trade Cooperation and 
Amendments to General Agreement on Tariffs and 
Trade (text of agreement) 577 

Current Actions 576 



Vol. XXXII, No. 823 



United Nations 

Current Documents 576 

Department's Views on ECE Oil Study 558 

London Discussions on Disarmament (Dulles) 557 

U.S. Delegation to U.N. Commission on Human Rights . . 576 

Viet-Nam. FOA Aid to Vlet-Nam, Cambodia, and Laos . . 569 

Name Index 

Briggs, Ellis 582 

Dulles, Secretary 551, 557, 572 

Eisenhower, President 556 

Ferguson, Homer 582 

Hoover, Herbert, Jr 558 

Jernegan, John D 564 

Lacy, William S. B 582 

Menzies, Robert G 560 

Murphy, Robert 559 

Patterson, Morehead 553 

Rankin, J. Lee 569 

Stassen, Harold E 556 



Check List of Department of State 
Press Releases: March 21-27 

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

Press releases issued prior to March 21 which 
appear in this issue of the Bulletin are Nos. 12.5 of 
March 5, 144 of Mar. 14, and 152 of Mar. 18. 
No. Date Subject 

155 3/21 Organization for Trade Cooperation 
and Gatt amendments. 
tl56 3/21 Note to U.N. on calendar reform. 
*157 3/21 Educational exchange. 
158 3/22 Dulles : Stassen appointment. 
tl59 3/22 Luce : "American Diplomacy at 

Work." 
*160 3/23 Scelba itinerary, 
■•lei 3/23 Conference on Foreign Service. 
tl62 3/23 Second report of Wriston Committee. 
*163 3/24 Educational exchange. 
*164 3/24 Satterthwaite nomination. 
*165 3/24 Educational exchange. 
166 3/24 Delegation to Human Rights Commis- 
sion. 
*167 3/24 Jacobs nomination. 



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These other Americans are very important people in our 
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They are our good partners, friends, and neighbors. 

This 48-page publication tells about our southern partners — 
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Vol. XXXII, No. 824 
April 11, 1955 




THE NEED FOR GREATER PUBLIC UNDERSTAND- 
ING • Remarks by the President 609 

MEETING THE PEOPLE OF CENTRAL 

AMERICA • by Vice President Mxan 587 

STEPPING UP U.S. AID TO INTER-AMERICAN HIGH- 

WAY • Letter From the President to Congressional 

Leaders 595 

Statement by Vice President Nixon 596 

U.S. RELATIONS WITH THE AMERICAN 

REPUBLICS • by Assistant Secretary Holland .... 598 

VISIT OF PRIME MINISTER SCELBA OF ITALY ... 612 

AMERICAN DIPLOMACY AT WORK • by Ambassador 

Clare Boothe Luce 616 

REVIEW OF PROTOCOLS ON GERMANY • Statement 

by Secretary Dulles 605 



For index see inside back cover 



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bulletin 

Vol. XXXII, No. 824 • Publication 5812 
April 11,1955 



The Department of State BULLETIN, 
a weekly publication issued by th( 
Public Services Division, provides tht 
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the Government tvith information on 
developments in the field of foreign 
relations and on the work of the De- 
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special articles on various phases of 
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of international relations, are listed 
currently. 



Meeting the People of Central America 



ty Vice Preddent Nixon ^ 



I note that tliis Council has had 12 speakers 
before my appearance here tonight, and it is sig- 
nificant to note that this is the first speaker who 
has had the subject of Latin America. I trust 
that it will not be the last because it seems to me 
rather unfortunate that we usually hear of Latin 
America only when there is an earthquake, a flood, 
a hurricane, or a revolution in that area. We get 
very prompt and efficient coverage of such legiti- 
mate news items, as we should. But another story, 
much bigger, more exciting, and more important 
is not adequately being told in the United States. 
This is the stoiy of an old and honored civiliza- 
tion awakening, of a potential economic giant 
being unshackled, of the way being paved for 
inevitable development wliich may bring to Latin 
America more progress in the last half of this 
century than the United States itself experienced 
during the first half of the century. 

This is the story that I would like to tell tonight. 

First, a word about the trip. As representatives 
of the President, Mrs. Nixon and I visited 10 coun- 
tries in Middle America and in the Caribbean area, 
and we also visited Puerto Eico and the Virgin 
Islands. We saw some breathtaking scenery, and 
I can urge all of you to visit these areas because 
it is a tourist's paradise — the volcanoes in Mexico ; 
the land of eternal spring, Guatemala; the mag- 
nificent lakes in Nicaragua; the fine climate in 
Costa Rica and San Jose, and coming from a Cali- 
fornian that's high praise, you know; and the 
vitality of Chiriqui Province (you have never 
heard of it, perhaps, but it's the Texas of Pan- 



* Address made before the World Affairs Council, Los 
Angeles, Calif., on Mar. 14. The Vice President and Mrs. 
Nixon returned to the United States on Mar. 6 after a 
month's visit to Central America. 



ama). And the vacation wonderlands of the 
Caribbean — Habana, St. Thomas, San Juan, 
Ciudad Trujillo, Port-au-Prince — all of these we 
were able to see even tliough very, very briefly. 
And we saw great religious and cultural and his- 
torical monuments — the Shrine of Guadalupe in 
Mexico, the Citadel in Haiti, and in the Domini- 
can Eepublic the University of Santo Domingo, 
the oldest in the hemisphere. 

We were privileged to meet and to be enter- 
tained graciously by the Heads of State and other 
Government officials of the countries that we 
visited, and, departing from the usual format of 
such visits by Goverimaent officials, we did some- 
thing else. We saw thousands of people in all 
walks of life. Mrs. Nixon visited by herself 88 
schools, orphanages, and hospitals, including the 
leper colony in Panama. I went to farms, fac- 
tories, scliools, churches, and the market places, 
where I met people in all walks of life. In fact, 
some of the newspapennen who were along and 
apparently kept track of such things said that we 
shook hands with 28,526 people during the course 
of the 30 days. 

In comiection with all this, sometimes the ques- 
tion is asked: "Why? "Wliy meet these common, 
ordinary people — workers, laborers, farmers, 
teachers, and students? The answer is just as I 
gave it when we returned fi-om Asia. We felt 
that tliis was the only tangible way for us to ex- 
press the deep affection that the American people 
have for jjeoples in other lands. It was the way 
that we had to get to know them, and through us 
they were able to know a little about the United 
States.^ 



^ For text of Mr. Nixon's report on his tour of Asia, see 
BuiXETiN of .Jan. 4, 1954, p. 10. 



\pTi\ 7 7, 7955 



587 



Now for some impressions, and may I empha- 
size that the impressions are not those of an expert 
but of a visitor trying to cram years of experience 
into a period of 30 very, very brief days. 

Importance of Latin America to U.S. 

Wliy is Latin America important? You know, 
in tliese days we are justifiably concerned by what 
is happening in Asia and in Europe and sometimes 
have a tendency to underestimate the importance 
of Latin America. But consider for a moment 
these facts. Strategically, the Republics in the 
American hemisphere are our closest neighbors. 
Therefore, they can be, as they are now, most es- 
sential friends; they could be in the future po- 
tentially dangerous enemies. 

Economically, and this is not, I think, too well 
known in the United States, Latin America buys 
more from the United States than all of Europe 
put together; Latin America buys more than all 
of Asia, Africa, and Oceania combined. Mexico 
is our third best customer; Venezuela, our fifth; 
Cuba, our sixth. 

Politically, the countries of the Western Hemi- 
sphere form together a bulwark of the free world, 
supporting free-world principles and opposing 
Communist encroaclmient. If we didn't know it 
before, we certainly learned it at Caracas. And 
we find the clear principles guiding the American 
Republics constantly demonstrated at the United 
Nations. Our countries seldom fail to act virtu- 
ally as a unit on issues of free-world importance. 

Consider the population problem for a moment. 
Right today there are 10 million more people in 
Latin America than there are in the United States. 
At the present rate of growth in that area, which 
is twice the world rate, there will be 600 million 
people in T^atin America by the end of this century. 

With these facts in mind, and for other reasons 
as well, it can truly be said that what helps one of 
the countries in the Americas helps us all and what 
hurts one will in the end hurt us all. 

Now, let us consider what has been wrong with 
the past policy of the United States toward Latin 
America. I think that I could sum it up in this 
way : that our policy toward Latin America in the 
past has been characterized by stops and starts, 
by big talk and very little action. On too many 
occasions a report is made advocating a program 
for progress in Latin America; everybody gets ex- 
cited for a few daj's or a few weeks; and then the 



report is quietly pigeonholed and for the most part 
forgotten. United States policy toward Latin 
America must have consistency, continuity, and 
follow-through. This administration recognizes 
the necessity for that type of policy, and we are de- 
termined to carry it forward. Dr. Milton Eisen- 
hower's trip to South America, and our visit to 
Central America, is clearcut evidence of the vital 
imj)ortance this administration attaches to de- 
veloping a more effective policy for Latin 
America. 

Prospects for Peace and Stability 

I would like to discuss briefly the prospects for 
peace and political stability in this area. First, 
an optimistic note. I believe that there is sub- 
stantial, hard evidence that the inter-American 
area is entering an era of greater internal stability 
and peaceful relations. Let me give you some rea- 
sons, some examples. I was able to witness first- 
hand the culmination of the efforts of the Or- 
ganization of American States to settle the dispute 
which had arisen between Costa Rica and Nica- 
ragua, two countries whose peoples are neighbors 
and friends. Their leaders, each devoted to his 
own country and each believing in the justice of 
his position, expressed to me personally a determi- 
nation to attempt to find peaceful solutions of the 
differences between them. Incidentally, those ex- 
pressions about solutions were both made, sig- 
nificantly enough, at one-thirty in the morning 
after a considerably long conference. But the 
Oas and the leaders of both countries, President 
Somoza and President Figueres, are to be congrat- 
ulated, I believe, for the example that thej^ have 
set for the whole world in finding peaceful solu- 
tions to difficult problems. 

We found Panama still grieving over the sense- 
less assassination of President Remon, a man who 
will without question go down in history as one of 
the greatest leaders, one of the greatest presidents, 
Panama has ever had. It was our privilege to 
present to Mrs. Remon, who visited Washington 
and made such a wonderful impression with her 
husband when she was here a few months ago, 
the sympathy of President and Mrs. Eisenhower 
and of all of the American people in her great 
loss, as well as that of Panama. I am convinced, 
however, that President Arias and the members 
of his government will successfully steer Panama 
through this crisis and that they will continue the 



588 



Deparimenf of Sfafe Bulletin 



regime of stability and progi'ess which President 
Eemon had so auspiciously inaugurated. 

Honduras is a country which has been plagued 
by over 100 revolutions in a relatively brief his- 
tory. Recently, it seemed headed for another 
governmental crisis when no candidate for the 
presidency won a majority of the votes. But the 
situation brightened because Vice President Lo- 
zano, as Chief of State, stepped into the breach. 
He is doing one of the most outstanding jobs in the 
hemisphere in dealing effectively with the prob- 
lems of the people and in creating an economic 
climate which will attract the new investment 
which is so essential for progress. 

Now, let us turn to the coimtry of our closest 
neighbors, om- friends south of the border, Mexico, 
which is the second nation in population among 
all the American Republics. President Ruiz Cor- 
tines, in my judgment, is one of the greatest lead- 
ers Mexico has ever had. This man, who is at 
once gentle and strong, honest and able, has a 
burning desire to raise the standards of living of 
his fellow countrymen. I saw that desire. I 
heard him speak feelingly time and again of the 
50 percent of the people of Mexico who, he said, 
lived on tortillas and frijoles. He brought it 
home vividly to us after a magnificent luncheon 
that he and his lovely First Lady gave for Mi^s. 
Nixon and me at Los Pinos, the Presidential Man- 
sion. As we stood on the steps of the mansion, I 
remarked to him : "This is a most beautiful Presi- 
dential Mansion, Mr. President," and he said, 
sadly, "It is beautiful, but 300 meters away people 
live in caves." "That," he added, "is the tragedy 
and the problem of Mexico." 

But Mexico has reached the stage of political 
maturity, and, under President Ruiz Cortines' 
wise polici&s, economic progress, in my opinion, is 
bound to follow. 

Other examples could be given, but I would like 
to mention Puerto Rico just briefly. You know, 
unfortunately, many of us think of Puerto Rico 
primarily in connection with the attempt of a 
group of fanatics to kill members of Congress last 
year. Consequently, when we went there we made 
it a special point to make many unexpected stops 
and to go out and meet the people on the streets. 
I can tell you that they are friendly to the United 
States, of which, of course, they are a part, and 
that they are proud of the American citizenship 



which is theirs. They are proud of their au- 
tonomy, which was written by themselves into 
their constitution and ratified by the United States 
Congress, and they are justifiably proud of the 
way in which they are dealing effectively with 
problems of education, housing, public health, 
agriculture, and the development of natural re- 
sources. You have to be there to see how effec- 
tively they are doing tliis. Puerto Rico, in my 
opinion, is the absolute refutation of all the Com- 
munist propaganda about the United States as an 
oppressive, imperialist power with a policy of 
colonial enslavement. I was privileged to meet, 
incidentally, several of the thousands of Puerto 
Ricans who fought so gallantly in Korea in our 
forces. In one factory which I visited, the ma- 
jority of the workers were Korean veterans. 

Under the leadership of their dynamic, forward- 
looking Governor, Muiioz Marin, Puerto Ricans 
are proving in this very small land with a tremen- 
dous population what can be done to conquer 
poverty by a people who have vision and determi- 
nation and who make the maximum use of very 
limited natural resources. 

With reference to the area in general, it seems 
to me that what must be done is to explore every 
means of developing closer political and economic 
relationships between these nations — nations al- 
ready closely bound together by geography, cul- 
ture, and economic factors. A periodic meeting 
of the Chiefs of State of the countries concerned, 
and the expansion of Odeca, the Organization of 
Central American States which has been sponsored 
so vigorously by President Osorio of Salvador, 
are among the specific steps that might be 
considered. 

I would like to comment at this point on a 
question about which I have had several inquiries 
since returning to the United States. Wliat about 
communism in the area ? What are the dangers ? 
What are the prospects ? 

In my opinion, communism has reached and for- 
tunately has passed its high-water mark in the 
inter- American area. The danger is still present, 
however, because the Communists, though under- 
ground and very few in number, are well organ- 
ized, and in many of these countries a well- 
organized minority always has a chance to over- 
throw the government and to impose its rule upon 
the majority of the people. 



April 17, 7955 



589 



Communist Failure in Guatemala 

Guatoiiiiila is a grim and terrifying monument 
to Communist failure, both in Latin America and 
tliroughout the world. The Comnuinists were in 
power for 10 years in Guatemala, and never has a 
government promised so much and done so little 
for the people. They promised the laboring man 
free organization of unions and fair labor laws. 
But under the law adopted in 1947 they set up 
government-dominated labor organizations ded- 
icated to serving the interests of the Communist 
international labor organization in Moscow rather 
than those of the working man. Non-Communist 
labor leaders were jailed and exiled. leaders of 
workers who attempted to organize the thousands 
of anemployed were beaten up and jailed. 

In this connection might I just comment that 
I was encouraged by the development of free 
trade union leadership in many of the countries 
which I visited, notably Cuba, Mexico, Puerto 
Rico, and in Honduras as well. It is generally 
becoming recognized in these areas that the 
answer to Communist trade union leadei'ship is 
not the negative alternative of no unions at all 
but the constructive alternative of encouraging 
and developing free trade union leadership. 
Governments and employers alike are beginning 
to realize that it is not a question of whether or 
not workers are going to organize — it is a question 
of how they are going to organize. And the devel- 
opment of strong free trade union leaders, it 
seems to me, is one of the most effective ways to 
defeat Communist objectives in this area. 

But going on with the comparison of what the 
Communists promised and what they did in Guate- 
mala. They promised high wages and benefits, 
but prices went up so fast that they ate up all of 
the wage increases that were actually granted. 
They jjromised to build more schools, but they 
came up only with political planning. As a re- 
sult, they squandered large investments in over- 
ambitious and poorly located structures, many of 
which could never be used because of lack of teach- 
ei-s. Textbooks and courses were revised to ex- 
press the Communist doctrine. Non-Communist 
teachers were forced out of the profession. 

It is no accident, incidentally, that some of the 
strongest opposition to the Communists in Guate- 
mala came from the organizations of university 
students who saw that communism was pervert- 
ing education in that country for Communist 
jjurposes. 



590 



The Communists promised health and hospital 
care. But instead of filling the needs in this field, 
they actually obstructed these measures. The ap- 
propriations for public health were substantially 
below those for some of the neighboring countries 
like Panama, Costa Rica, and Cuba. The substan- 
tial programs for malaria control, sanitation, and 
other projects were dropped because U. S. agencies 
were cooperating with the Guatemalan Govern- 
ment. Consider the tragic example of hospital 
space. The Pi-esident Roosevelt Hospital, a vi- 
tally needed 1,000-bed structure, was commenced 
in 1942. It was still unfinished in 1954 when 
Castillo Armas came into power. And let me 
say that this hospital, which the Communists 
failed to finish in 12 years, will be completed and 
fully in operation within 1 year under the Castillo 
Armas government. 

The Communists promised to construct thou- 
sands of houses. Yet, in 9 years virtually the only 
housing projects which wei'e completed were sev- 
eral fine mansions for the use of the top Commu- 
nist officials. 

They promised new roads. But after 9 years, 
despite huge expenditures of funds supposedly for 
highway jjurposes, the national highway network 
in Guatemala was in the worst condition in his- 
tory when the new government took over. 

They promised agrarian reform, but they made 
the farmers, in effect, tenants of the state without 
ever letting them gain title to the plots parceled 
out to them. The interests of these farmers M-ere 
subordinated to those of the Communist Party. 
The result was a collectivist farm system under 
which farm workers exchanged a new and a 
tougher master — the tyrannical Communist state — 
for their former landloi'ds. 

They squandered the national inheritance con- 
sisting of state-owned coffee plantations by putting 
them in the hands of their party favorites, and 
they thereby caused a drastic decline in produc- 
tivity and the loss of millions in income to the 
nation. 

As a result of their systematic hostility to busi- 
ness enterprise, they discouraged normal economic 
expansion and drove into exile abroad an estimated 
$50 million of domestic Guatemalan private 
capital. 

To cap it all off, when President Arbenz abdi- 
cated, he took with him a million dollars in cash 
from the already sacked national treasury. In- 
cidentally, President Eisenhower was quite amused 

Department of State Bulletin 



during my report to the Cabinet on Friday [March 
11] when I pointed out that proportionately this 
would be like a President of the United States 
skipping off with a billion dollars. 

You have heard about the atrocities visited upon 
the peojjle of Guatemala by the Communists, but 
you cannot imagine how terrible they were and 
how the people felt. It is impossible for one who 
has not visited Guatemala to get the feeling of the 
hatred of the people in all walks of life for that 
regime. The record just cited explains it in part. 
And the strong support for Castillo Armas among 
the people is explained by this record despite the 
difficulties that he has encountered since coming 
into power. 

I saw that support firsthand. Cheering thou- 
sands were on the streets every place we went to- 
gether in open cars. He is the man of the great 
majority of the people and they are behind him. 
There is no question about that. 

Guatemala is not yet out of the woods. But it 
has a fine people, it has rich undeveloped natural 
resources, and it has an honest, a dedicated, and 
a, courageous leader in President Castillo Armas. 
His objective was summed up, I thought very elo- 
quently, when he told me : "We have proved that 
we can beat the Communists with guns; now we 
must prove that we can do better than they did 
in providing social justice for the people." 

In no place in the world are the stakes for free 
peoples liigher than they are in Guatemala. Here 
the whole world has a chance to make a direct 
comparison between what a Communist govern- 
ment can do for an undeveloped country and what 
a free government can do. The free world cannot 
afford a failure. I am confident that success will 
crown our cooperative efforts to succeed. I am 
convinced, and I will make a prediction, that the 
Castillo Armas government can do more good for 
the people of Guatemala in 2 years than the Com- 
munists did in 10 years. And that will be a tre- 
mendous accomplishment not only for Guatemala 
but for the cause of freedom every place in the 
world. 

Economic Development of Latin America 

And now to the exciting story of economic devel- 
opment. An era of progress is inevitable in this 
ai-ea. There are rich undeveloped resources and 
peoi)]e who are willing to work. "Wliat else is 
needed? First of all, Latin America needs mar- 
kets. Trade with the United States is the most 



important single factor in the economic develop- 
ment of Latin America. And let me say that in- 
terest in trade in Latin America far exceeds any 
interest in gi'ants, loans, or technical assistance. 

From our standpoint we must bear in mind that 
virtually every dollar we pay for products of Latin 
America is in turn spent in the United States for 
the products we sell to them. Reducing our im- 
ports from Latin America would mean less dollars 
for our exports to that area. 

President Eisenhower has placed greater em- 
phasis than ever this year on the importance of a 
gradual selective reduction in artificial barriers to 
trade. In visiting Middle America, I saw the 
physical proof of the importance of this policy to 
the members of the American family. The Amer- 
ican people must face squarely the question of 
whether we will continue to import from our sister 
American Republics even though this, at times, 
means competition with American producers in 
some industries. The importance of vigorous 
inter- American trade to our own well-being is such 
that I believe that we will not falter in making the 
correct decision. 

Second, Latin America needs capital. 

The major source for capital is not from 
government grants or loans but from private in- 
vestors, both from within the comitry concerned 
and from without. To attract private investors, 
the interested governments must create conditions 
which will give confidence to them. A test as 
to whether the government is successful in doing 
this may be found in the extent to which its own 
people are investing their savings in the economic 
development of their country. If confidence 
among domestic investors exists, the only added 
factor needed to attract foreign investors is 
assurance of nondiscriminatory treatment. 

Capital is available today in the hands of pri- 
vate investors in Latin America, in the United 
States, and elsewhere in the world in quantities 
sufficient to expand the rate of new investment 
far beyond anything we have seen to date. To 
attract these private investors is a job that must 
be done by the local governments, and I have been 
encouraged that the governments of most of the 
countries I visited are aware of this. They are 
moving constructively to meet this objective. 
This is especially true in Mexico City, for ex- 
ample, and in Managua, Ciudad Trujillo, and San 
Juan. All of these are boom cities today because 
goverimient policies have created peace and stabil- 



April 7 7, 7955 



591 



ity, and private investment has been encouraged. 

In addition to private capital needs, there are 
some projects sucli as roads, irrigation systems, 
and port facilities for which government capital 
must be provided. It is to the interests of the 
people of the United States for our Government 
to make available large sources of credit for this 
type of investment, which often is far beyond the 
economic capacity of the govermnents of this 
hemispliere. At the Rio Conference we assured 
the Eepublics of the hemisphere that through the 
Export-Import Bank our Government would do 
its utmost to satisfy applications for the develop- 
ment loans which satisfy certain sound and logical 
conditions. I returned from our trip convinced 
that our Government's aid to Latin America 
should be prinn\rily in the form of loans rather 
than grants, and I found this to be the prevailing 
opinion among the Heads of State in the coun- 
tries which I visited. 

Latin America needs technical training. The 
U.S. technical aid program is working well in the 
countries which I visited. People in these coun- 
tries have an amazing ability to learn quickly, and 
they are willing to work hard in order to learn. 
I saw it in instance after instance during my visits 
to various projects. The small amount that we 
are contributing for technical advice and assist- 
ance will pay in the end enormous dividends in 
increased productivity for the countries involved. 

Inter-American Highway 

Latin America needs communications. I have 
already made clear my strong belief in the neces- 
sity of finishing the Inter-American Highway. 
The highway is of importance economically to 
those countries and to us. It is important to those 
countries in the creation of political stability. It 
is important to us from the military and strategic 
standpoint. And may I say that an accelerated 
program of construction finishing the highway 
within 3 to 5 years would pay dividends to the 
taxpayers here and untold dividends to the coun- 
tries there. And when this highway is finished, 
I hope that I'll drive down with my family over 
it to visit these countries again. I hope that all 
of you who are listening will do likewise. 

As we coTisider the economic situation of our 
neighbors, some people may ask, "Wliy should we 
care about economic progress in Latin America?"' 
There are a number of reasons. 



592 



From their standpoint, the end we seek in eco- 
nomic development is to provide more jobs at 
better salaries, a greater volume of goods at rea- 
sonable prices. And from our standpoint, politi- 
cal stability in the Americas, we know, is as es- 
sential to us as to them, and political stability 
depends to a gi'eat extent on economic stability. 
As the economic well-being of these countries im- 
proves, we benefit directly, because they are able 
to sell more to us and that means that they can 
buy more from us. The best proof of this is that 
Canada, with its high standard of living, is our 
best customer in the world today. 

Our exchange and library programs in this area 
are as effective as any I have seen in the world. 
I believe that they should be expanded. And may 
I say that our Government personnel, and our 
State Department personnel in this area par- 
ticularly, are doing a splendid job mider difficult 
circumstances. I trust that that job is well pub- 
licized throughout the United States. I am glad 
to say that word with regard to it today. 

And may I add this thought for all of us. We 
received a wonderful welcome at every place we 
stopped. But the welcome was not for us — it was 
for the people of the United States. And you can 
help as citizens to create good will by welcoming 
them, and people from all over the world, when 
they come to this country. Good will is some- 
thing that should not be considered as created 
just by a good- will trip which lasts for 30 days. 
It must be practiced every day of the week and 
the year. Let us all help in being gootl-will am- 
bassadors at home and abroad. 

I sliould like now to refer to a point that I 
made earlier in my remarks. Before we came into 
this room tonight, I met an old fi-iend of mine 
and he asked me, "Are those people down there 
really friendly to the United States?" We all 
read stories from time to time about somebody or 
something being anti-American, but I can say 
that the people in these countries could not have 
been more friendly than they were at every place 
we visited. And I think that I am a fair judge 
of the reactions of people. You learn that, of 
course, as you travel around in political campaigns. 
It would have warmed your hearts to see the mag- 
nificent reception that we received. 

I have mentioned our Government persormel 
in the area we visited and how we were impressed 
by their dedication and by their hard work. I 
trust that more and more young men and women 

Department of State Bulletin 



will go into the Foreign Service and do the splen- 
did job, sometimes under very difficult circum- 
stances, that so many of our career people are 
doing in the Foreign Service today. We need 
good people, and certainly all of us should attempt 
to encourage them in this. 



People Helping People 

In addition to our own Government personnel 
and officials of other governments, we saw a lot 
of peojile not connected with govermnents who 
were doing a wonderful work in creating condi- 
tions which would lead to peace and better rela- 
tions between peoples. They were also doing an 
excellent job in building conditions for economic 
progress and better health and sanitation in the 
area. 

There were many people who impressed me. I 
will never forget a priest in San Salvador. We 
stopped at his school as we rode along 
the road. He is a man in his early forties, full of 
vitality, who for 10 years has been running almost 
singlehandedly a school for underprivileged boys. 
He teaches them trades, and the high school pro- 
duces graduates who are able to go out and con- 
tribute to the economy of their country in a very 
substantial way. This they could not possibly do 
without the assistance which he provides. 

I remember an incident in Haiti. Haiti is a 
country which, unfortunately, is very limited in 
its resources, but its people are good people. They 
were just as fi-iendly to us as any people could be. 
As we drove into the city from the airport we saw 
a group of little handicapped children drawn up 
in wheelchairs, and standing by them were Sisters 
from Boston, the Sisters of St. Margaret of the 
Episcopal Church. We stopped and greeted some 
of the children, and we were able to see some of 
the work that those Sisters were doing — a labor of 
love in bringing affection and devotion to children 
who perhaps would otherwise never have a mo- 
ment of it in their lives. We thought of the tre- 
mendous contribution they were making to good 
will, as well as to the lives of the individuals they 
help. 

I remember a doctor in Honduras. A big tall 
man, he was trained in New York under perhaps 
the leading specialist in lung surgery in the world 
today, and he has become a leading specialist him- 
self. I was told that he could command the high- 
est fees either in Tegucigalpa, the capital of Hon- 



duras, or in New York, where he had been asked 
to come. But he has remained in his country, 
and he spends more than half of every day that he 
practices in a tuberculosis hospital in Honduras. 
He performs operations that are highly technical 
and difficult. They require from 2 to 21/2 hours 
each, and the only pay that he gets are the gi'ateful 
smiles of the patients who but for him would not 
have long to live. 

I remember the Ruiz Galindo family. The 
Ruiz Galindos run a factory in Mexico. It is a 
small factory by our standards and our scales, but 
it is a well-operated enterprise. They make every- 
thing from safes to kitchen cabinets and refrigera- 
tors. They have to make a number of products, as 
they pointed out, in order to compete effectively 
in their area. They showed me through the fac- 
tory very proudly. As we stepped from the fac- 
tory out into an immense playground area, Mr. 
Ruiz Galindo said that we were now to see what 
he considered the most important of his life's 
work. 

We saw acres of recreation space for the workers 
and a school for 3'oungsters through the sixth 
grade. We went into the schoolrooms and saw the 
immaculately scrubbed little Mexican children 
there and talked with them. Ruiz Galindo said, 
"This is the future of Mexico." I thought that 
Mr. Ruiz Galindo also represents the future of 
Mexico and the new kind of responsible individual 
enterprise which we have known in the United 
States and which is now developing in other areas 
of the world as well. 

I remember the tremendous impression that was 
made on me by the Archbishop in Guatemala — a 
very slight man, but a man with an inner strength 
that you could see in his eyes. He talked to me 
about the days when the Communists were in 
power. He pointed out that in order to defeat 
the Communists we not only had to provide for 
economic progress but it was necessary to have 
strength of spirit as well. To beat the Com- 
munists, he said, it is necessary to convince people 
in their heads as well as in their stomachs. I had 
read of him before I came, and I heard from those 
who were with me that this man for 10 years had 
constantly preached against the Communists and 
that he was so strong that they were afraid to jail 
him.^ 



' For an excerpt from a pastoral letter in which the 
Archbishop denounced communism, see ibid., Aug. 16, 
1954, p. 235. 



April 11, 1955 



593 



I want to lueiitioii also Dr. AVilson Popcnoe, a 
remarkable man, u t\'pical ("alifornian, whose 
brother, Paul Popenoe, is at the Universitj' of Cali- 
fornia in Ix)s Angeles. Dr. Popenoe is the direc- 
tor of an agricultural school for boys in Zamorano, 
Honduras, that is doing a wonderful service for 
that and other Latin American countries. The 
school was established and is supported by the 
United Fruit Company as a public service. 

Each year Dr. Popenoe, with the dedicated as- 
sistance of his wife and the other teachers, giadu- 
ates approximately 75 students who come from 10 
countries. Here they learn to live together, they 
learn to break down the prejudices that they might 
otherwise have, and of course they go back to the 
countries from which they came trained in the 
most modern agricultural techniques. This is 
truly a public service, since these students cannot 
go to work for the United Fruit Company. And 
Dr. Popenoe, of course, is responsible for the mag- 
nificent training that they receive. 

I could give other examples. I remember, for 
example, the loeataricui. I asked the origin of that 
word. This is the name for the market women, 
and one Guatemalan said to me facetiously that 
he thought that the word had its root in the word 
"crazy" or "loco." lie said everybody calls these 
market women just a little crazy. Of course my 
answer would be, as was his, "I wish thei-e were 
more people in the world who were just a little 
crazy." They were the backbone of the resistance 
to the Communists, and they were the ones who 
went into the Assembly and threw overripe to- 
matoes and bananas at the Communist deputies. 
They were the ones that went to jail, suffered, and 
were tortured. And, what is most important, they 
are the beginning of a middle class in that country. 

I remember the graciousness shown us every- 
where and the friendliness we found. It is some- 
thing that touched our hearts every place that we 
went. I i-emember as we stepped from the Shrine 
of Guadalupe there were approximately 2,000 
Mexicans in the square who threw confetti and 
shouted "■Vira los Estculoa Uiu'dos, Viva Mexico, 
Vim h'/.sf'iihmrer, Viva Ruiz Cortines?'' And I 
remember the little old man who gave us a beauti- 
ful bouquet of flowers as we left the church. He 
said, "I work in the market here, and those of us 
who work in the market wanted you to have this 
as an expression of esteem from the people of 
Mexico to the people of the United States." That 

S94 



type of instance was repeated over and over again. 

In Managua there was a young Nicaraguan boy 
who stepped up to me. He was obviously a la- 
borer with a relatively low income. He pulled a 
ring from his finger, and he put it on mine, and I 
said, "No, you can't do that." He said, "I want 
you to have it." He said, "You have come and 
paid our jieople a visit. We love the United 
States and I want you to have this ring as a sym- 
bol of our love." 

Little people, big people, all kinds of people, 
expressing the affection of peoples to peoples. Of 
course, that is the major point that I wish to make 
to you here tonight in these informal remarks at 
the conclusion of this meeting. Leadere of gov- 
ernment have the responsibility of maintaining 
peace. One of the ways they maintain peace is 
through contracts, contracts that are called trea- 
ties. I remember one of the first things that I 
ever heard when I started as a first-year man at 
law school back in 19;}4 was what my contracts 
pi'ofessor told me about contracts. He said a con- 
tract is only as good as the will of the people to 
keep it. A treaty too is only as good as the will 
of the people to keep it. And the will must come, 
not from the heads of statesmen, but from the 
hearts of the people. 

That is why we took this trip ; that is why the 
President has such a deep belief in contacts be- 
tween peoples; and that is why I urged just a few 
moments ago that you here in this audience help 
to create good will by welcoming our friends from 
Latin America, from Asia, from Europe, who come 
to the United States by the thousands — teachers, 
students, business people, tourists. AVelcome them 
as they would welcome us. The Latins have a 
wonderful phrase which I think conve3's this mes- 
.sage better than anything else that I could say. 
We couldn't cross a threshold, we couldn't get oflp 
an airplane, without having our host, whoever he 
or she might be, say to us '^Esta listed en su casa" 
meaning more than the American "Make yourself 
at home.'' It means you are in your home. And 
in French-speaking Haiti, the same thing, "Fo!« 
etes chez -yo-w^," you are in your own home. So 
I say, let us convey that message to our friends 
who visit us from the other countries, and as we 
convey it we can contribute our part as ordinary 
American citizens, not membei-s of government, in 
creating the peaceful world that is the hope and 
the dieam of peoples everywhere. 

Department of State Bulletin 



stepping Up U.S. Aid to Inter-American Highway 



The 'White House on April 1 released identical 
letters sent by the President to the Vice President 
and the Speaker of the Home of Representatives 
on the need for accelerating the completion of 
the Inter-Atnerican Highivay. Following is the 
text of the President's letter to the Vice President, 
together with a statement on the same subject 
xohich Mr. Nixon made to correspondents at 
Panama on February 26. 

TEXT OF THE PRESIDENT'S LETTER 

Dear Mr. Vice President: For some time I 
have had under consideration the desirability of 
accelerating the completion of the Inter-Amer- 
ican Highway which extends from the United 
States to the Canal Zone via the Central American 
countries. 

The early completion of the Inter-American 
Highway in close cooperation with the affected 
countries is a clearly established objective of 
United States policy. 

_ Although this project has been under construc- 
tion sporadically since 1934 and the Congress has 
appropriated funds in the amount of $53,723,000 
to dat« for its completion, the incompleted state 
of the project prevents realization of maximum 
benefits. 

Recently I have sought the advice of interested 
agencies of the Government and I am convinced 
that for economic and political reasons now is the 
appropriate time to speed completion of the Inter- 
American Highway. I believe this would be the 
most significant single action which the United 
States can take in Central America and Panama 
to bring about the most mutually advantageous 
results. 

Among the considerations which make me feel 
that an accelerated construction program on the 
highway is essential are these : 

«^pri\ n, 1955 



1. A completed highway will provide a very im- 
portant contribution to the economic development 
of the countries through which it passes. 

2. There will be an opportunity for increased 
trade and improved political relations among 
these countries and the United States. 

3. The resultant increase in tourist traffic would 
not only improve cultural relations but also serve 
as a very important element in the development 
of their economies through earnings of foreign 
exchange. 

4. The existence of such an all-weather liighway 
would be of substantial security importance, both 
in providing overland contact and communication 
as far southward as the Panama Canal, and in 
bringing an important physical link between 
these countries in our common defense of the 
Western Hemisphere against aggression from 
without and subversion from within. 

The stabilizing effect of these factors will tend 
to bar any possible return of communism which 
was so recently and successfully defeated in this 
area. 

It is estimated that the amount needed to com- 
plete the Inter- American Highway in a three-year 
period is $112,470,000, of which $74,980,000 would 
be the share of the United States, leaving $37,490,- 
000 as the combined share of the several cooperat- 
ing countries on the usual 2 : 1 matching basis. 

In the Federal-Aid Highway Acts of 1952 and 
1954 Congress authorized the expenditure of 
$56,000,000 for this project. Funds actually ap- 
propriated against these authorizations have to- 
taled $6,750,000, leaving a balance of $49,250,000 
yet to be appropriated. Of this amount $5,750,000 
is currently included in budget estimates now 
pending before the Congi-ess. In order to accel- 
erate the highway work sufficiently to pennit its 
completion within the next three years, an addi- 
tional authorization of $25,730,000 will be needed. 
It will also be necessary to increase oiu- 1956 ap- 
propriation request from $5,750,000 to $74,980,000. 



595 



In the near future I sIkiII transmit to tlic Con- 
gress the necessary bud<;;et request to carry out this 
pro;;rani, and I trust that tlie Congress will give 
this proposal for accelerated completion of the 
Inter- American Highway its most favorable 
consideration. 

Sincerely, 

DWIGHT D. ElSENUOWER 

STATEMENT BY THE VICE PRESIDENT 

The present program for United States par- 
ticipation in the construction of the Pan American 
Highway is inadecyiate, uneconomical, and com- 
pletely unrealistic. For 15 years our Government 
has been publicly committed in its foreign policy 



to support and aid in the construction of the higli- 
way. At the present rate appropriations are being 
made^ it will take — unless an accelerated program 
for completion is adopted — from 15 years to a 
quarter of a century to complete it. Neither the 
taxpayers of the United States nor those of the 
other countries concerned are receiving the full 
benefit of what is in concept and will be in frui- 
tion a magnificent program. 

There is no question about United States pol- 
icy with regard to the highway. We are publicly 
committed to aid in its completion. Dribbling 
out the funds as we are presently doing is penny 
wise and pound foolish. Such a progi'am not only 
costs substantially more in dollars, but it delays 
inexcusably the great benefits both we and our 



Mexico 

Guatemala. . 
El Salvador. 

Honduras 

Nicaragua. . . 
Costa Rica.. 

Panama 

Venezuela.. - 

Colombia 

Ecuador 

Peru.. 

Chile 

Bolivia 

Argentina 

Paraguay 

Uruguay 

Brazil 



Total - 



Pan American Highway System ' 

RfiSUMfi BY COUNTRY (MILES) 



Total' 
1,603 
317 


Paved 
1,603 
49 
174 


AU-yVeather 

243 
21 
166 
107 
206 
264 
283 

1, 156 
608 
792 

1,126 

1,438 

535 

175 

5 

2,065 


Dry-Weather 


Impaatabit 

25 


195 






» 166 






238 


131 

60 

75 

333 

402 






412 
540 


13 


133 
201 


616 






* 1, 780 




222 


715 . 


76 


31 


1,909 


1, 117 

228 

89 

1,576 

45 

407 

348 




1,482 


128 

100 

873 

57 

40 




» 1, 777 
2,984 


150 


»431 
452 


154 


2,504 


91 









18, 121 



6,637 



9, 190 



1,287 



LENGTH OF SOME SECTIONS OF THE PAN AMERICAN HIGHWAY (MILES) 



From Nuevo Laredo, Mexico, to Panama 

From \j& Guaira, Venezuela, to Rio de Janeiro 
(via Santiago, Buenos Aires, Montevideo, 
and Rio Branco) 



Total 
3, 171 



8, 100 



Paced 
2,076 



3,560 



AU-Wealher 
909 



4,357 



Dry-Wtalher 



152 



1,007 



186 



31 



' Travel Division, Department of Economic and Social Affairs, Pan American Union. 

' Overlapping sections along the alternate routes have been eliminated in totaling the mileage in each country. 

• Includes branch road to Tegucigalpa, 73 miles. 

• Includes roads from Bogotd to Panamd, Venezuela and Ecuador. 
'Impassable section bypassed by Alternate Route No. 1. 

• Does not include proposed route across the Chaco to Bolivia. 



596 



Department of State Bulletin 




PRINCIPAL ROUTES OF THE 

PAN AMERICAN HIGHWAY SYSTEM 

(AS REPORTED BY THE VARIOUS COUNTRIES) 



Paved road 
All weather rood 
Dry weather rood 
Under Construction 
Impassable route 



V 



neighbors to the South would derive from the com- 
pleted highway. To put it simply, the less we 
spend each year on this program, the more it will 
cost in the long run. 

Reducing the annual appropriation for the high- 
way does not save the U.S. taxpayer's money. It 
increases the total bill he will eventually have to 
pay. Since the United States is committed to con- 
tribute its share of the cost of the highway even- 
tually, we should move up the completion date and 
appropriate as much as can be economically ex- 
pended consistent with the capacity of the other 
contributing countries each year. In conversa- 
tions with the officials in each of the countries I 
have visited and with the United States Govern- 
ment officials who are familiar with this program, 
I have been advised that it would be possible to 
finish the highway in as little as 4 years if an 
accelerated program were adopted. This should 
be our objective. The sooner the highway is com- 
pleted, the sooner it can begin to pay for itself. 

Each of the Chiefs of State of the countries I 
have visited and each of our Ambassadors have 
emphasized that the Inter-American Highway, 
once completed, would make a greater contribution 
to the overall welfare of these individual nations 
than any other single thing the United States 
could do. 

There are several reasons why the highway as- 
sumes such an important position in the area. 

(1) It is of importance economically because it 
will open up huge sections of these countries which 
have hitherto been inaccessible. The very process 
of developing these regions will inevitably bring 
a great demand for U.S. machinei'y, equipment, 
and other products with an obvious benefit to U.S. 
industry. A healthy economy in Central America 
and Panama is of as great an interest to us as it 
is to those countries themselves. A contributing 
factor to such economic progress will be a substan- 
tial increase in income from tourists proceeding 
from the United States. 

(2) The highway, once completed, would have 
an inestimable value in promoting political sta- 
bility. Many of the tensions and misunderstand- 
ings which existed in the past have been due to 
completely inadequate communications wliich 
have prevented the free movement of persons and 
goods and the full exchange of points of view. 
Through an improved mutual understanding and 
increased economic activity many of the conditions 



which communism has exploited in Central Amer- 
ica in the past would be eliminated. 

(3) Strategically the last war showed the ur- 
gent need for means of transporting material 
quantities of foodstuffs and supplies to the area 
which would be independent of sea transport. We 
were fortunate in that the problem became no more 
serious. But we have no assurance that the ab- 
sence of overland connnunication from the U.S. 
to the Canal Zone would not be disastrous if, de- 
spite all our efforts, another war should come. 
Furthermore, we camiot count on an indefinite 
period of time in which to remedy this situation. 

For those at all familiar with the problem there 
can be no question of the compelling reasons for 
pushing the highway to an early completion. In 
our own interest and in that of Central America 
and Panama, it is essential that the job be done 
with all possible speed. 



Pan American Day and 
Pan American Weeit, 1955 

A PROCLAMATION' 

WHEBBiis April 14, 1955, will be observed in each of the 
twenty-one Republics of the Western Hemisphere as Pan 
American Day, celebrating the sixty-flfth anniversary of 
the founding of the Pan American Union, which is the 
permanent organ and General Secretariat of the Organi- 
zation of American States ; and 

Whereas the observances commemorating that occasion 
will take place throughout the week of April 10 to April 
16, 1955; and 

Whereias the bonds of friendship uniting the Govern- 
ments and peoples of the United States and those of the 
other American Republics in their social, cultural, political, 
and economic relationships continue to be strengthened 
through their mutually constructive efforts within the 
framework of the Organization of American States ; and 

WHEiiEAS during the past year the Republics of this 
Hemisphere have again demonstrated their mutual and 
steadfast determination to withstand aggression from any 
source, to preserve the peace of the Americas, and to use 
effectively the machinery for pacific settlement provided 
in the treaties binding them together in the inter- 
American system : 

Now, THEKEFORE, I, DWIGHT D. EISENHOWER, Presi- 
dent of the United States of America, do hereby proclaim 
Thursday, April 14, 1955, as Pan American Day, and the 
period from April 10 to April 16, 1955, as Pan American 
Week ; and I urge that the people of this nation on that 
day and during that week give particular expression to 
their fraternal feelings toward the peoples of the other 



' No. 3088 ; 20 Fed Reg. 2103. 



April 7T, 1955 



597 



American Republics and to their devotion to the mainte- 
nance of the principles which we share with them. 

I also Invite the Oovernors of the States, Territories, 
and iiossesslons of the United States and the Governor of 
the Commonwealth of Puerto Rico to issue similar procla- 
mations; and I call upon all our citizens and all interested 
organizations to unite in appropriate observance of Pan 
American Pay and Pan American Week, in testimony of 
the solidarity which characterizes the relationship be- 
tween the peoi)les of the United States and those of the 
other American Republics. 

In witness whereof, I have hereunto set my hand and 
caused the Seal of the United States of America to be 
affixed. 



Done at the City of Washington this thirty-first day 
of March in the year of our Lord nineteen 

[seal] hundred and fifty-five, and of the Independence 
of the United States of America the one 
hundred and seventy-ninth. 



By the President: 

John Fostee Dulles 

Secretary of State 



U.S. Relations With the American Republics 



by Henry F. Holland 

Assistant Secretary for Inter-American Affairs ' 



During the past year or two our relations with 
the American Republics have changed in some 
rather important respects. Happenings during 
that time will give direction to those relationships 
for some j'ears to come. I should like today to 
review those happenings, the policies they repre- 
sent, and our own plans for implementing those 
policies. I should like to say a word, too, about 
the direction in wliich our inter-American rela- 
tionships are moving and what may lie ahead of 
us. Because of the deep and genuine interest in 
Latin America that is demonstrated today by 
people throughout the United States, such a 
review may be timely. 

At the outset, let me suggest that the best pos- 
sible policy is of little value unless the people 
affected by it can be reasonably certain of its sta- 
bility. Stable foreign policies permit govern- 
ments and peoples to make long-term plans of the 
kind tliat are essential to any real accomplishment. 

No government can guarantee that its policies 
will not change. In the United States, however, 
a policy which has the approval of all agencies of 



'Address made before the Western Hemisphere Sub- 
committee of the World Trade Committee of the Wash- 
ington Board of Trade, Washington, D. C, on Mar. 28 
(prf-aa release 168). 

598 



the Government and of both political parties 
naturally is the most stable. We have gone to 
great lengths to insure that our foreign policies in 
the inter-American field are truly bipartisan and 
to make them reflect the views of all agencies of 
our Government. We feel, therefore, that they 
merit the support of our people. Our primary 
responsibility is to represent their interests. 

It seems to me that the people of the United 
States have a wholesome and realistic understand- 
ing of the importance of the cultural, economic, 
political, and military relationships between our 
country and the rest of the Americas. That im- 
portance has been eloquently stated by Vice Presi- 
dent Nixon and by Dr. Milton Eisenhower in their 
reports made on returning from their recent tours 
in Latin America. 

The inter- American policies of our Government 
are rather simple and clear. In every field — 
cultural, political, military, and economic — they 
arc based upon one fundamental conviction : that 
we are an American family ; that in the economic 
field our relationship is essentially that of 
partners. 

The importance of forging strong cultural and 
spiritual ties between the American States cannot 
be exaggerated. Again and again we have seen 
close and loyal cooperation between Rations who 

Department of State Bulletin 



have few if any political or economic ties but 
whose cultural bonds are strong and sincere. On 
the contrary, lasting and effective cooperation be- 
tween nations without cultural links seems diffi- 
cult if not impossible. Therefore, such bonds be- 
tween the American States are truly a key to that 
larger kinship, embracing the economic, political, 
and military fields, which we seek to preserve and 
strengthen. 

For such ties to be strong is it necessary that we 
all share the same culture and the same views? 
Decidedly not. But it is necessary that we all 
understand and respect those two gi'eat cultures, 
Latin and Anglo-Saxon, which we pray will for 
all time enrich the lives of the peoples of America. 
This deep conviction likewise underlies all the pol- 
icies of our Government in this hemisphere. 

In the moral and cultural field our policy will 
continue to be to support every practical measure 
that is logically designed to strengthen and ex- 
tend in every American State genuine understand- 
ing and respect for every other. "VVe have no 
Utopian illusions that differences of opinion will 
not arise between us. Such differences exist be- 
tween several American States today, and un- 
doubtedly they will continue to arise. But as 
understanding and respect deepen between any 
two or more American States, the differences be- 
tween them will diminish in number and intensity. 
I have said that policies are not worth much unless 
they are stable. You will agree that they mean 
little until something affirmative is done to imple- 
ment them. 

Exchange Program With Latin America 

What is the United States doing to strengthen 
understanding and respect? There is no finer 
road to understanding than through exchanges of 
people. With this in mind the State Depart- 
ment's program for the exchange between the 
Uiiited States and Latin America of outstanding 
leaders and students has been substantially in- 
creased. So, too, has the number of Latin Amer- 
ican technicians and labor leaders invited to visit 
the United States under the Foreign Operations 
Administration. This year it is expected that as 
many as 1,500 Latin Americans may visit us under 
this program, as compared to 560 year before last. 
We are also arranging that some of the funds de- 
riving from the sale of surplus commodities in 
this hemisphere be used to establish student schol- 
arships to visit the United States. 



Another fine work in tlie cultural Held is that of 
the American schools and binational cultural cen- 
ters which have been established in many parts of 
Latin America. Our contributions to these in- 
stitutions are being increased, and new binational 
centers are being established through the United 
States Information Agency. That Agency is con- 
tinuing its programs for distributing documentary 
films, books, and other publications, and its book 
translation progi'ams — all intended to achieve a 
better understanding throughout Latin America 
of the economic and other problems which affect 
us all. 

It is heartening that so many top officials of 
our own and other American governments have 
been able to travel within the hemisphere. Kecent 
instances have been the visit of President Magloire 
of Haiti to this counti-y and the trip of Vice Presi- 
dent and Mrs. Nixon to the 10 countries of Middle 
America. Our Secretaries of State, Treasury, 
and Agriculture, the Attorney General, and high 
congressional and military leaders also visited 
Latin American countries. Of similar importance 
was the Inter- American Investment Conference 
just held at New Orleans. This meeting brought 
together several hundred businessmen and finan- 
ciers of the United States and a similar number 
from Latin America for practical discussions on 
investment in Latin America. 

I had the honor to accompany Vice President 
Nixon on his recent visit to Mexico, Central Amer- 
ica, and the Caribbean Eepublics. Mr. Nixon 
spoke not only with Chiefs of State and high of- 
ficials; he made opi^ortunities to talk with labor 
leaders, businessmen, teachers, laborers, and the 
man in the street. He was able to appreciate the 
great reserve of genuine affection for the people 
of this country which exists in our neighbor re- 
I^ublics. He, in turn, was able to show them how 
warmly and sincerely this affection is reciprocated. 
Visits such as his and that of Dr. Milton Eisen- 
hower to South America play an important role 
in our relations with the rest of the Americas. 

The importance of our political relationships in 
the Americas need not be emphasized. Here also 
differences exist between some American States. 
Yet in the political field the policies of the Ameri- 
can States have attained a degree of advancement 
and effective implementation unequalled else- 
where. The political unity of the Americas in 
support of the peaceful settlement of problems is 
unique in the world. 



April 11, 1955 



599 



Imperfect though we are, this unity has en- 
abled us to develop a system of international 
treaties and institutions wliich have oft«n been 
adopted as models elsewhere in the world and 
whose elTectiveness has been demonstrated again 
and again in our own affairs. 

We see clearly the many opportunities for self- 
improvement that exist here and in every other 
American State. Yet our demonstration that 
more than a score of nations, large and small, can 
fashion a hemisphere where there are no satellites 
and where for a quarter of a centui-y the living 
standards of people have risen steadily is a factor 
which exerts gi-owing influence in the world. 

All this woukl cease to be true if the political 
unity of the Americas were destroyed. That is 
some measure of the importance of our political 
ties. 



Inter-American System 

TJu' inter-American system rests essentially 
upon the Organization of American States, or 
Oas. Its permanent organ and general secretariat 
is the Pan American Union, wliose 65th anniver- 
sary we shall celebrate on April 14. The charter 
of the Oas and the treaties which led to its adop- 
tion established those principles of sovereign 
equality, non-intervention, and mutual coopera- 
tion which have been adopted by the United Na- 
tions. 

At the Tenth Inter- American Conference, held 
a year ago in Caracas, another new principle was 
added to this slowly evolving American creed. 
Long ago we agreed to treat an attack on any 
iVmerican State as an attack on all. In Caracas 
this principle was enlarged to meet the require- 
ments of today's cold war. We there joined to 
Marn the leaders of international communism that, 
if they succeeded in dominating the political in- 
stitutions of any American State, all would as- 
semble to agree upon measures to eliminate that 
threat to the peace of the Americas. 

You recall what followed. International com- 
munism did achieve domination of the political 
institutions of Guatemala. The American States 
agreed to meet in July of 1954 to consider the 
problem. Heartened by that determination, the 
people of Guatemala rose and disi^ersed the little 
group of traitors who had tried to convert their 
Government into another Communist .satellite. 

In .Tiuiuary we saw another moving demonstra- 



tion of the inter-iVmerican system in action. Act- 
ing with dramatic rapidity the Organization of 
American States took a series of steps which ef- 
fectively removed a serious threat to the territory 
and sovereignty of the Republic of Costa Rica.° 

The keystone of our policies in the political field 
will continue to be our detei'inination to cooperate 
with our sister republics to assure that the Or- 
ganization of Amei'ican States confronts courage- 
ously, effectively, and with unswerving moral pur- 
pose the problems which come before it. Only 
thus can it satisfy the high aspirations reposed in 
it by the peoples of our hemisphere. 

In the military field our policies are based upon 
the conviction that, so long as this hemisphere re- 
mains a joint homeland for all American States, 
the security of each is greatly fortified. Partici- 
pation by our sister republics in a conunon pro- 
gram for the defense of the hemisphere enables 
the United States to shoulder, on behalf of all, 
military responsibilities elsewhere in the world 
which we could not otherwise assume. 

The constantly improving coordination between 
our armed forces enables those of our sister re- 
pul)lics who so elect, not only to man their part 
of the inner defenses of our hemisphere, but also, 
as have Brazil, Mexico, and Colombia in the past, 
to share our arms in other parts of the world 
should war break out anew. 



Economic Relations 

If you will, let me now discuss our economic 
relations. Happilj' for the peoples of America 
decades of constructive progress in the political 
and military fields have reduced our major prob- 
lems of that nature and have brought us in the 
hemisphere to that fortunate position where today 
our greatest inter-American problems are eco- 
nomic. None of us would claim to have attained 
perfection, but here we can lay major emphasis, 
not so much upon survival of peoples and free 
political institutions, as upon making the lives 
of our peoples more abundant. 

Our economic relations throughout the hemi- 
sphere are generally normal and progressive. In 
many areas of the world enormous obstacles must 
first be overcome before nations can achieve the 



' For an address by Assistnnt Secretary Holland on Oas 
action In the Costa Riean conflict, see BuLiJErriN of Jan. 
31, lOSn, p. 178. 



600 



Deparfment of State Bulletin 



kind of economic reliitions which we incline to 
accept as a matter of course. This very fact 
causes many of us in the Americas to overlook the 
vital importance to all of us of our inter- American 
commercial and business relations. 

Our U.S. trade with Latin America is now 
about $3.5 billion in each direction each year. 
We sell to our sister republics roughly the same 
amount that we sell to Europe, and more than to 
Asia, Africa, and Oceania combined. Our im- 
ports from them are greater than from Europe 
or the other continents. This trade is as impor- 
tant to our neighbors to the south as it is to us. 
The products which we interchange in such large 
quantities are indispensable to almost all the 
economies of the hemisphere. 

Our dependence on the other American States, 
both as markets for our exports and as suppliers 
of our imports, is constantly growing. Within 
20 years both our exports and our imports with 
Latin America may double. Its economy is devel- 
oping with dramatic rapidity. Since 1945 over- 
all activity in that area has grown at an average 
rate of 5.4 percent a year as compared to 3 per- 
cent in the United States. Since 1940 the number 
of automobiles has increased by 140 percent — 
trucks and buses by 275 percent. Telephones 
have increased by 126 percent and tractors by 500 
percent. 

We, on the other hand, are just as important 
to Latin America. In 1953, 46.5 percent, or $3.5 
billion of the area's total exports, went to the 
United States market. We supplied more than 
50 percent of all their imports. The future pros- 
perity of Latin America depends on the preserva- 
tion and expansion of that exchange. 

During the past year and a half much thought 
and effort have been devoted to the formation of 
sound economic policies and programs. 

Going back to November of 1953, we have the 
exhaustive analysis and report on our inter- Ameri- 
can relations submitted to the President by Dr. 
Milton Eisenhower.^ That report sets out recom- 
mendations for the improvement of mutual under- 
standing and respect in this hemisphere and for 
'the strengthening of our economic ties. Then 
just a year ago the President's Commission on 
Foreign Economic Policy, headed by Mr. Clarence 
B. Randall, and on which both parties were repre- 
ented, filed its own thorough study and recom- 



mendations on the foreign economic policies of 
our country. ■* These two fundamental studies, 
the one regional and the other worldwide, became 
the basis for President Eisenliower's message on 
foreign economic policy sent to Congress in March 
of 1954.^^ That document defines the basic eco- 
nomic policy of the current administration and 
in every substantial respect is reaffirmed in the 
President's message on the same subject sent to 
Congress at the beginning of this year." 

The basic and worldwide policies so formed 
have been translated into specific policies and 
programs designed to improve economic develop- 
ment and living standards throughout the 
Americas. Over a period of 5 months last year a 
committee drawn from every interested agency of 
the Government completely re-examined all our 
economic policies in this hemisphere in order to 
bring them into line with those more general poli- 
cies to which I have just referred. The result 
was the development of inter- American economic 
policies which we are now pursuing. 

In personal conferences with leaders of the 
other American governments and at the economic 
conference at Rio 4 months ago, we fully ex- 
plained these policies in order that wherever they 
coincide with those of the other governments we 
can coordinate our efforts. They have met with 
a degree of approval which profoundly encourages 
and gratifies us. 

Thus, our economic policies are the result of a 
logical approach which began with exhaustive bi- 
partisan study, was carried into consistent world- 
wide executive policies, and was then translated 
into geographic regional policy through joint 
analysis and conference by all interested agencies 
of the Government. 

Let me review these inter-American policies 
and say a word about what we are doing to imple- 
ment them. 



Goal of Our Inter-American Policies 

Our basic goal is to make an effective contribu- 
tion to the establishment in each x\merican Re- 
public of a strong, self-reliant, and durable 
economy — one that will mean better living stand- 
ards for all our peoples. 



' Ibid., Nov. 23, 1953. p. 695. 
April 11, 1955 

338394—55 3 



' For excerpts, see ibid., Feb. 8, 1954, p. 187. 
'Ibid.. Apr. 19, 19.->4, p. 602. 
'Ibid.. Jan. 24, 1955, p. 119. 



60^. 



We can lielp most by maintaining a strong econ- 
omy here and by giving Latin Anierica assurance 
of continued access to the great market that a 
strong United State-s economy represents to them. 
When one recalls that each year United States pri- 
vate enterprise puts $3i/2 billion into Latin 
America in payment for her exports to us, the 
comparative importance of other kinds of financial 
help is clear. There is a clear need to increase 
the rate of private investment and to expand 
sources of government finance, but it is far more 
important for Latin America to stabilize and ex- 
pand its dollar earnings year after year by in- 
creasing her trade with us. This is just as helpful 
to us because these dollars are returned to us in 
payment for our own huge exports to the area. 

So for Latin America the crucial economic ques- 
tion is : What will be the foreign trade policies of 
this Government? What are they? 

First, we rely primarily upon private enterprise 
rather than its replacement by government in 
business. In his foreign economic policy message 
to Congress this year, President Eisenhower said : 

The Nation's enlightened self-interest . . . require[s] a 
foreign ec()ii(>n)ie profjram that will stimulate economic 
growth in the free world through enlarging opportunities 
for the fuller operation of the forces of free enterprise 
and competitive markets. 

Second, we support the expansion of interna- 
tional trade. On this the President has said : 

For every country in the free world, economic strength 
is dependent upon high levels of economic activity in- 
ternally and high levels of international trade. No nation 
can he tH'onomically self-sufficient. Nations must huy 
from other nations, and in order to pay for what they buy 
they nuist sell. It is es.sential for the security of the 
United States and the rest of the free world that the 
United States take the leadership in promoting the 
achievement of those high levels of trade that will bring 
to all the economic strength upon which the freedom 
and security of all depends. 

The President goes on to urge : 

We and our friends abroad nuist together undertake 
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 all. 

In order to implement this policy of reducing 
trade barriers, the President has renewed his re- 
quest for a 3-year extension of authority to negoti- 
ate tariff reductions with other nations on a 
gradual, selective, and reciprocal basis. That pro- 
l)osal is now under consideration in the Senate. 
Its decision will have a profound effect on the 

602 



future economic growth and stability of this 
hemisphere. 

As you know, the President also proposes to sub- 
mit to Congress for its approval the recently 
negotiated revision of the General Agreement on 
Tariff's and Trade, pursuant to which the United 
States and 33 other trading countries are cooper- 
ating in an effort to reduce trade barriers.' 

A number of the Latin American countries 
would like to supplement the dollars they earn 
through trade by increasing dollar investments in 
their countries and by increasing governmental 
loans for economic development. We recognize 
the need for additional economic development 
capital in some of the other American Republics. 

Most of this, we believe, can come and should 
come from private sources. The private investor, 
both domestic and foreign, is by far the most 
prolific soui'ce of capital. The most productive 
course for any government to follow in seeking 
investment capital is to establish conditions that 
create confidence in private investors — particu- 
larly its own nationals. Have you ever noticed 
that in countries where local investors are full of 
confidence there is usually no shortage of foreign 
capital? On the other hand, if conditions dis- 
courage domestic investors those from abroad are 
reluctant to come in. 

Any solution of the need for economic develop- 
ment capital must begin with the fundamental 
.step of establishing confidence among private 
investors. "VVliere this is accomplished, the num- 
ber and magnitude of attractive investment op- 
portunities in the hemisphere are sufficient to 
assure a satisfactory flow of capital. 

We recognize that our own role in this field is 
secondary. The j)rimary responsibility rests on 
each interested government and people. Yet our 
Government is taking resourceful measures to en 
courage our United States investors to enter those 
foreign areas where they are wanted. We are 
trying to follow a policy which, as the President 
has i^ut it, '"results in investment by individuals 
rather than by governments.'' 

To accomplish this, the President proposes three 
measures: First, that Congress reduce taxes oni 
business income from foreign subsidiaries or 
branches and defer those taxes until the income is 
removed from the country where it is earned ; sec- 
ond, to explore the use of tax treaties which would. 



' Ibid.. Apr. 4, 195,''), p. 577. 

Department of State Bulletin' 



under proper safeguards, give credit for foreign 
income taxes which are waived for an initial lim- 
ited period, just as our Government now allows 
credit for those taxes which are actually paid 
abroad. Finally, the executive branch will rec- 
ommend approval by Congress of our participa- 
tion in the proposed International Finance Cor- 
poration, an affiliate of the International Bank, 
which will make development loans to private 
enterprise abroad without government guaranties 
and which will be authorized to invest in deben- 
tures and similar obligations. If. as contem- 
plated, that corporation is established with an 
initial capital of $100 million, it will be prepared 
to undertake operations substantially exceeding 
that amount. 



Liberalized Credit to Latin America 

We liave also responded effectively to Latin 
American desires for access to greater govern- 
mental loans for necessary projects for which pri- 
vate capital is not reasonably available. We have 
assured the other American Republics that 
tlu'ough the Export-Import Bank we shall do our 
utmost to satisfy all applications for sound eco- 
nomic development loans where the funds are not 
reasonably available from pi'ivate sources or from 
the International Bank. This important com- 
mitment means simply that no economic develop- 
ment loan is going to be turned down for lack of 
funds. The level of governmental lending for 
this purpose in the hemisphere is going to be de- 
termined largely by Latin America itself, because 
it will depend upon the volume of sound loan ap- 
plications which are Hied. 

Since this new policy of liberalized credit to 
Latin America was announced in the summer of 
1954, the amount of credits authorized bj' the Ex- 
port-Import Bank in Latin America and their 
celationship to the total authorized for all areas 
af the world have changed in a most striking 
iianner. 

For the first 6 months of 1954 total credits au- 
,-horized by the bank amounted to $76,000,000, of 
■vhich $.39,000,000 were for Latin America. But 
'or the 8l^-month period from July 1, 1954, to 
Vlarch 14, 1955, the world figure is $475,891,000, 
md the credits for Latin America total $304,- 
)00,000 or almost ten times as much as during the 
irst half of 1954 and 64 percent of the total. Even 
nore impressive is what has happened since Jan- 

ipril ?I, J 955 



uary 1, 1955. During this period total credits of 
$184,000,000 have been authorized, of which over 
90 percent or $167,000,000 were for the Latin 
American area. 

If the volume of sound loan applications per- 
mits, it can be anticipated that the bank's activi- 
ties will be further intensified in the hemisphere 
during 1955. 

The programs of technical cooperation in which 
the United States has participated have contrib- 
uted much to the development of the Latin Amer- 
ican economies. Our participation in these pro- 
grams is being strengthened. Substantially in- 
creased appropriations for technical aid in Latin 
America have permitted new programs to be 
undertaken, and the number of technicians and 
labor leaders visiting the LTnited States has been 
increased from 560 year before last to 1,500 in the 
current year. 

The Latin American governments generally pre- 
fer that our contributions to their economic devel- 
opment not take the form of grants. Very prop- 
erly they would rather rely upon their own earn- 
ings in an expanding international trade and 
upon sound loans. Nevertheless, there were occa- 
sions in 1954 when we did furnish gi-ant assistance 
to meet emergency conditions. Wlien declining 
tin prices made it impossible for Bolivia to im- 
port the foodstuffs needed to avert a domestic 
crisis, we undertook a program of grant assistance 
which is continuing this year. We have also fur- 
nished assistance to Guatemala to meet emergency 
needs encountered when the Communist govern- 
ment was expelled. We have also furnished food- 
stuffs and supplies to Haiti to reduce the hunger 
and suffering caused by last fall's hurricane. 



Completing the Inter-American Highway 

Finally, it is very much in our interest that, in 
cooperation with the other republics concerned, an 
accelerated program be undertaken to complete 
the Inter-American Highway. Termination of 
this 3,000-mile artery extending from our border 
with Mexico through its territory, that of the five 
Central American Republics and Panama, to the 
Canal will mark the end of more than a quarter 
of a century's work which has already put the 
majority of the highway into use. It is difficult 
to conceive of any single factor which could have 
a greater beneficial effect throughout the entire 



603 



llii'se tlieii JUT our policies in the intei -Ameri- 
can field. These are the [)rognims tliroupli wliich 
we seek to implement those policies. You will 
agree that they arc not easy of accomplishment. 
Tliey re(|uire some sacrifice and some self- 
discipline on our own part and on the part of all 
who would join us in them. A policy of protect- 
injj ami expanding the existing levels of our inter- 
American traile is inevitably one which i)rovokes 
strong opposition from affected interests here and 
elsewhere. These policies depend for their suc- 
cess on great identity of pur[)ose between ourselves 
and the other members of tlie American family, 
an identity of purpose extending through the cul- 
tural, political, military, and economic fields. 

Yet the rewards which we can achieve in this 
hemisphere justify that sacrifice, that self- 
discipline, and the effort required to agree upon 
common aims and purposes. For it is within the 
power of the 21 American Kepublics working to- 
gether as partners to assure for their more than 
325 millions of men. women, and children an op- 
portunity to achieve lives of personal freedom 
and dignity, of economic and ])oliticaI security to 
which no other comparable area of the world can 
aspire. 



United States and Chile Sign 
Educational Exchange Agreement 

I'rpps release 170 dated March 31 

The Government of Chile on March 31 signed an 
agreement with the United States putting into op- 
eration the program of educational exchanges 
autliorized by the Fulhright Act. The signing 
took place at Santiago with Foreign Minister Os- 
valdo Koch representing the Government of Chile 
and Ambassador AVillard L. lieaulac representing 
tiie Government of the United States. 

The agreement provides for the expendiluie of 
Chilean currency, received by the United States 
in payment for surplus agricultural products sold 
to Chile, to finance exchanges of persons between 
the two countries for purposes of study, research, 
teaching, or lecturing in universities. Funds re- 
ceived by the United States from other sources in 
Chile may possibly be used for this program also. 

Under the terms of the agreement, a Commis- 
sion for Educational Exchange between the 
United States and Chile will be established to 
M»isi in the administration of the program. The 

601 



C ommission will consist oi six luemDers witii equal 
representation as to Chilean and U.S. citizens in 
addition to the American Ambassador, who will 
act as honorary chairman. All recipients of 
awards under the program authorized by the Ful- 
bright Act are selected by the Board of Foreign 
Scholarships, whose members are appointed by 
the President of the United States and which 
maintains a secretariat in the Department of State. 

AVith the signing of this agreement, Chile be- 
comes the 29th country and the first of the other 
American Republics to participate in the educa- 
tional exchange program initiated 8 years ago 
under authority of the Fulbright Act. Educa- 
tional exchanges between Chile and the United 
States have been carried out for a number of years 
under the Act for Cooperation With the Other 
American Republics, the Smith-Mundt Act, and 
other legislation. 

After the members of the Commi.ssion have been 
appointed and a program formulated, informa- 
tion about specific opportunities will be released. 

Eximbank Extends Credit to 
Costa Rican Power Company 

The Export-Import Bank of Washington an- 
nounced on March 8 the extension of a $2..") million 
credit to the National Power and Light Company 
of Costa Rica. The funds being made availabl»^ 
by the bank will be used to finance the purchase 
of U.S. machinery and equipment required in 
connection with a construction program to in- I 
creiise the supply of electric power in Costa Rica. 1 
The terms of the credit provide for repayment 
over an 8-year period beginning in 1058 at an 
interest rate of 51/4 percent. 

The borrower, a private firm, is a subsidiary 
of the American & Foreign Power Company'. It 
is the largest electric utility in Costa Rica and 
also operates the largest telephone system in the 
country. National's hydroelectric and steam- 
generating capacit}' of 40,000 kw. furnishes power 
for San Jose, the capital and principal city of 
Costa Rica, as well as a number of surrounding 
towns of the central plateau. The company's 
service area includes about 40 percent of the popu- 
lation of Costa Rica. There has been a serious 
shortage of electricity in Costa Rica due to the 
lack of generating capacity in rainy periods and .. 
insuflicicnt water during dry seasons. As afll 
result, power has had to be rationed. '• 

Department of Stale Bulletin 



i\ 



Review of Protocols on Termination of German 
Occupation and Accession of Germany to NATO 

Statement by Secretary Dulles ' 



The documents before your committee will, 
when operative, lay the basis for a new Europe. 
They can bring about a unity and security in 
Europe for which the United States has long 
hoped and in pursuit of which our Nation has 
made great sacrifices. 

The two world wars of this century made it 
evident that Western civilization cannot survive 
if the nations of Western Europe continue to fight 
each other. Already they have expended so much 
blood and treasure in their wars that they have 
gravely depleted their strength. In consequence, 
Western civilization, with its dedication to human 
liberty and dignity, can now be seriously chal- 
lenged by an atheistic system which treats human 
beings as animated bits of matter to be ordered 
into conformity by despotic rulers. 

Western Europe, long the cradle of Western civ- 
dization and of Christianity, has now what is 
!)robably its last chance to survive as a place of 
uunan welfare. That last chance is embodied in 
he documents before you. 

These documents will produce the following 
•ouerete results : 

( 1 ) They will restore sovereignty to the Fed- 

' Made before the Senate Committee on Foreign Rela- 
ioiis on Jlar. 29 (pres.s release 170), witli regard to the 
'rotofol on the Termination of the Occupation Regime 
u I he Federal Republic of Germany and the Protocol 
'o the North Atlantic Treaty on the Accession of the 
'ederal Republic of Germany, both signed at Paris on 
)ct. 2.3, 1954, and transmitted to the Senate on Nov. 15, 
954. For texts of these documents, see Bm.i.ETiN of 
fov. If,, 19.54, p. 719. For the President's letter of 
ransmittal and a report by Secretary Dulles, see ibid., 
)ec. 6, 1954, p. 847. 

On Apr. 1 the Senate gave its advice and consent to 
atification of these two protocols by a vote of 76 to 2. 
fhe President signed them on Apr. 7. 

^pn\ 11, 1955 



eral Kepublic of Germany — sovereignty which, 
taken away when Germany surrendered almost 
exactly 10 years ago, cannot any longer be justi- 
fiably withheld; 

(2) They will forge a lasting unity of seven 
Western P^uropean nations — Belgium, France, 
Germany, Italy, Luxembourg, the Netherlands, 
and the United Kingdom — under the Brussels 



French Ratification of 
European Agreements 

On March 27 the French Seriate approved the 
ratification of the Western European Union agree- 
ments, including the admission of the Federal Re- 
public of Germany into NATO. The Department of 
State issued the following statement: 

Ratification of the Paris Agreements by tie 
Council of the Republic is an event of great sig- 
nificance for the free world. This completion of 
French parliamentary action, shortly following 
German completion, provides a firm base for the 
development of Franco-German relations and for 
progress toward the development of greater unity 
in the Atlantic community, not only in the military 
but in other fields as well. 



Treaty of 1948, amended and enlarged to make it 
a treaty for Western European Union ; 

(3) They will inaugurate a system of military 
limitations and controls which will provide sub- 
stantial insurance against militarization ; 

(4) They will bring the Federal Republic of 
Germany into the North Atlantic Treaty, thus 
adding an essential element of strength and mak- 
ing possible an effective defense of Western Eu- 

605 



rope tlirou;,'li implementation of a forward 
strategy ; 

(f)) They will assure, through action of the 
North Athmtic Treaty Council, a close integration 
of the armed forces in Europe of the member 
countries, thereby giving assurance that these 
forces cannot be used for nationalistic aggi-ession 
or otlierwise than for the security purposes en- 
visioned by the treaty. 

The sum total of the foregoing is a Western 
Europe which will have a large measure of unity 
and of controlled strength and which, through 
that unity and strength, can contribute mightily 
to its own welfare and to that of others. 



EDC Concept 

You will recall that it was originally sought to 
establish a European Defense Community con- 
sisting of six continental countries — Belgium, 
France, (lernuiiiy, Italy, Luxembourg, and the 
Netherlands. This had been proposed in 1950 by 
the Frcncii Minister of Defense, and after long 
negotiation it resulted in 1952 in three treaties — 
a treaty to create the European Defense Commu- 
nity; a convention (often called the Bonn Con- 
vention) to restore sovereignty to the Inderal Re- 
public of Germany; and a protocol to extend the 
North Atlantic Treaty area to include Western 
Germany. The United States was a party to the 
two last-named treaties, and in July 1952 the Sen- 
ate gave its advice and consent to their ratification. 
However, this action by the United States came 
to naught because the treaty to create the Euro- 
pean Defense Community was rejected by the 
French Assembly on August 30, 1954. 

In vigilant anticipation of that possibility, the 
United States Senate, on July 30, 1954, by a vote 
of 88 to had adopted a resolution which ex- 
pre.ssed the wish of the Senate "to restore sover- 
eignty to Germany and to enable her to contribute 
to the maintenance of international peace and se- 
curity." ' The President was asked to act ac- 
cordingly. 

This cooi)eration lietween the Executive and 
the Senate and the unanimous participation 
therein by the Senate put the President, and me 
on his behalf, in a position to deal effectively with 
the grave situation which resulted when, 30 days 



later, the European Defense Community was 
finally rejected. 

The European Defense Community was a 
European concept designed to deal with a Euro- 
pean problem. It was thus preferable that the 
initiative in finding a substitute should come from 
the European countries. Fortunately, that ini- 
tiative was not lacking. Mr. Eden, now Sir An- 
thony Eden, the British Foreign Minister, con- 
sulted with the governments which had signed the 
Edc Treaty in an effort to discover whether the 
Brussels Pact of 1948 might provide the frame- 
work for substitute arrangements. At the same 
time I flew to Europe to consult with Chancellor 
Adeiuvuer and with Mr. Eden. Although Mr. 
Eden's consultations were not conclusive, the pros- 
pects warranted convening a conference of the 
governments most directly concerned. Accord- 
ingly, the six signatories of the Edc Treaty, plus 
the United Kingdom, the United States, and 
Canada, met in Ivondon in late September 1954. 

London Conference 

The principal task of the London conference 
Wiis to find an acceptable basis for German asso- 
ciation with the free nations of the AVcst and for 
a German contribution to Western defense. Under 
the 1952 agreements, the Federal Republic was to 
be associated with Nato only indirectly through 
membei-sliip in the Edc. At Jjondon we decided 
to seek full German membership in Nato. How- 
ever, this needed to be supplemented by some re- 
production of those aspects of P^dc which removed 
the field of armament from exclusively national 
competence. This was ivchieved by enlarging the 
five-power Brussels Pact organization to include 
the German Federal Republic and Italy and giv- 
ing that organization control of the annaments 
of the continental European members.-^ 

It was essential that these controls should not 
interfere with the creation of adequate defensive 
forces by Nato. So at Ix)ndon we agreed that the 
level of peacetime contributions by the various 
members of the Biiissels Pact to the forces under 
the Nato Supreme Commander, Europe (Sackiti) 
should, within certain agreed limitations, be 
worked out in Nato. The Brussels Pact nations 
in turn agreed not to maintain on the European 
Continent peacetime armaments in excess of those 



" Ibid., Aug. -Si, in.'H, p. 284. 

606 



'Ibid.. Oct. 11, i'.».-)4. p. r,\r>. 

Department of State Bulletin 



required for the forces tliey would contribute to 
Nato for its defensive purposes, plus their police 
forces, which were also subject to limitation by the 
Council of Western European Union. They also 
agreed to establish machineiy for verifying these 
levels of armaments and for dealing with infrac- 
tions of the levels. Furthermore, it was envisaged 
that the political and economic functions of the 
Brussels Treaty Organization would be strength- 
ened, thus providing a broad basis for closer co- 
operation among the member countries. 

The acceptance of these arrangements was 
greatly facilitated by additional commitments 
made by the Federal Republic and by the United 
Kingdom. The Federal Republic undertook vol- 
untarily to forego the right to manufacture weap- 
ons of mass destruction — atomic, biological, and 
chemical — and not to manufacture guided missiles, 
larger warships and submarines, and strategic 
■bombers, except upon request of Saceur and with 
the agreement of the Brussels Treaty Council act- 
ing by a two-thirds vote. 

The British Government undertook to main- 
tain on the European Continent ground and air- 
force units equivalent to those now assigned to 
Saceur and not to withdraw them against the 
tvishes of the majority of the Brussels Treaty 
oowers. This British commitment constituted an 
listoric departure from traditional British policy. 

Finally, it was agreed by the United States, 
he United Kingdom, France, and the Federal 
Republic that the occupation regime in Western 
jermany would be brought to an end by the Bonn 
ZIonvention, amended to take account of develop- 
nents since it was made in 1952. 

The agreements in principle reached at the 
^ondon conference then had to be developed in 
letail and drawn up in appropriate formal in- 
truments. A further conference was, therefore, 
onvened in Paris in late October to review the 
lew texts and to sign them. They were, in fact, 
igned in Paris on October 23. 

the Saar 

At the same time, a Franco-German agreement 
•n the Saar was signed. The French Government 
lad long considered it essential that such an agree- 
aent be part of the overall arrangements regard- 
ng German relations with the West. Discussion 
n this subject had been proceeding for several 
ears. But it was only on the last day of our 



meetings at Paris that agreement was finally 
reached between Chancellor Adenauer and Presi- 
dent Mendes-France. The agreement provides 
that, pending the conclusion of a peace treaty with 
Germany, the Saar will be given a European 
status. A European commissioner, responsible 
to the Council of Ministers of the Western Euro- 
pean Union, will supervise the carrying out of the 
agreement and will be in charge of foreign afl'airs 
and defense matters. 

The monetary and customs union between 
France and the Saar will continue. But Germany 
will eventually be given a position in trade mat- 
ters similar to that of France. The arrangements 
are subject to the approval of the Saar population, 
to whom the agi-eement will be submitted in a 
referendum. The agreement contains pro-vdsions 
designed to insure that the referendum will afford 
an opportunity for a free expression of the views 
of the Saarlanders. 

The French Government and the German Fed- 
eral Government have agreed to ask the United 
States and the United Kingdom to give assurances 
respecting the Saar agreement. These assurances 
would be expressions of intention, indicating our 
general willingness to support the arrangements 
to which I have referred. No treaty obligations 
would be involved on our part. 

The Saar arrangement is one of the most im- 
portant byproducts of the plan for Western Euro- 
pean Union. Like the Trieste settlement, it gives 
promise of disposing in amity of an age-old, ex- 
plosive source of trouble. 

U.S. Position 

All of the documents signed at Paris are now be- 
fore the Senate for its information. Most of these 
either do not involve the United States as a party 
or are purely administrative in character. But 
two treaties do call for the Senate's advice and 
consent to ratification. These are the protocol 
amending the Bonn Convention, restoring sover- 
eignty to the Federal Republic of Germany, and 
the protocol admitting the Federal Republic of 
Germany to the North Atlantic Treaty. 

The arrangements expressed in these two trea- 
ties involve substantially the same obligations on 
the part of the United States as those which the 
Senate accepted in 1952 in terms of the original 
Bonn Convention and the Nato extension protocol. 

The revisions of the Bonn Convention are for 



ipril II, 1955 



607 



till- piirposi' of briiijiinji it up (o diiU' luid express- 
ing more fully i\w .status of equality being ac- 
corded to the Federal Republic/ The obligations 
of tlie United States are not enlarged. 

The existing rights of the Allietl Powers with 
respect to Berlin and Germany as a whole — that 
is, our status vis-a-vis the Soviet Union — are 
maintained as under the original conventions. We 
also retain our right to station forces in Germany, 
in agreement with the Federal Republic. Its 
agreement was given at Paris ' and has be«n ap- 
proved by parliamentary action. The te.xt has 
been submitted to the Senate for information. 

The admission of the German Federal Republic 
to Nato will not impose on tl»e United States any 
additional commitment beyond what would liave 
been assumed by the protocol wliich the Senate 
approved in 1952. In both cases the protection 
of the Nortli Atlantic Treaty is extended to the 
Federal Republic, and the latter assumes cor- 
responding responsibilities. 

As an e.ssential contribution to the overall re- 
sult, the President has made a dechiration ex- 
pressing our policy of active and continuing par- 
ticipation in the Atlantic security system repre- 
.sented by Nato." This was done after consulta- 
tion with leaders of both houses of the Congi'ess. 
The statement reaffirms our interest in Nato and 
our determination to continue active participa- 
tion in the arrangements which have be«n estab- 
lislied thereunder. In particular, this statement 
contained an a.ssurance, based on the language 
used in Senate Resolution 99 in 1951, that the 
United States will "continue to maintain in Eu- 
rope, including Germany, such units of its armed 
forces as may be necessary and appropriate to 
contribute its fair share of the forces needed for 
the joint defense of the North Atlantic area while 
a threat to that area e.xists." Also, the state- 
ment reiterates the United States view that the 
North Atlantic Treaty is of indefinite duration, 
announces our intention to cooperate with Nato 
and the Council for AVestern European T'nion on 



•For rcli'Viiiit texts, see the fdllowiriR : S. Kxccs. Q and 
R, S2a CoiiK.. 2(1 HO.sH. (text of Bonn Convention) ; S. 
Kx<-<-8. U iind M, KU\ PonK.. M sess. (complete text of 
I'arls protocol, IncliKiin;; live nniendinn sclipilules) ; 
S. Doe. 11, K4th CoiiK., 1st sfss. (coiiiixjsite text of Bonn 
Oinventlon and ParU protocol) ; S. Kxec. Rept. No. 0, 
H4th Cong., iRt Hess, (analysis of revisions to Convention). 

' itri.ijTTiN of Nov. ^r>. i>i.-,4, p. 7:io. 

'Ihid., Mar. 21. IWiTi, p. 404. 



force levels and armament controls, and repeats 
our willingness to share information on the utiliza- 
tion of new weapons as autliorized by the Congress. 

My statement at London, outlining United 
States policy in these respects, followed as it was 
by Sir Anthony Eden's restatement of British 
policy, constituted the turning point in a con- 
ference which, up to then, had no clear sense of 
direction. 

My statement, most of which was incorporated 
in the Final Act of the Ijondon conference, which 
is before you, made clear that such Presidential 
assurances, when given, would be only policy 
statements, not binding either as treaties or even 
in tlie sense that future Presidents would be 
legally conmiitted thereby. However, the assur- 
ances describe policies which have been developed 
through bipartisan cooperation over a period of 
years. They reflect what now seems to be the 
fundamental and enduring interest of the United 
States in European unity and Atlantic security. 
They will, I am confident, continue to serve our 
national interests. 

I believe that the arrangements before you carry 
out faithfully the desires of the Senate, as ex- 
pressed in its resolution of July 30, 1954. They 
will restore sovereignty to the Federal Republic 
of Germany, and they will enable that Republic 
to contribute to the maintenance of international 
peace and security. Furthermore, these results 
will be achieved within a framework of unity for 
Western Europe, which, on the one hand, assura* 
strength and, on the other hand, gives large as- 
surance against an abuse of that strength. 

Other European Problems 

The conditions which these agreements will 
create will, I hope, lead to a solution of other 
European problems. 

The reunification of Germany and the con- 
clusion of the German peace treatj' continue to be 
basic objectives of our policy. For 8 years now 
these objectives have been sought in repeated con- 
ferences with the Soviet Union. The first of tliose 
conferences was held at Moscow in tlie spring of 
1947, and the latest of such conferences was held at 
Berlin last year. These conferences have come to 
naught because the Soviet Union has used them 
as occasions to maneuver against unity in the non- 
Communist part of Europe. Once, liowever, that 
unity is an irreversible reality, then conferences 



608 



Departmenf of Sfafe Bulletin 



could be held with greater hope. The Soviet 
Union will no longer have the possibility of per- 
verting these conferences into maneuvers against 
Western European unity. It may, perhaps, at 
long last, be possible to get down to the actual 
business of unifying Germany. 

Furthermore, tlie arrangements for armaments 
control set a pattern which might be adapted for 
wider use in P^urope, if the Soviet rulers have a 
genuine desire to regulate and control armaments. 
They talk often and loudly about limitation of 
armament, but in fact they have never made any 
practical proposals. In contrast, there has here 
been quietly developed an effective system of con- 
trols and limitations. These apply to six fully 
sovereign nations, with a total population of over 
160,000,000, possessing large industrial power and 
inheriting gi-eat military traditions. This con- 
stitutes an example without precedent. The whole 
world can usefully note it and profit from it. 
Perhaps adaptation and extension of this pattern 
of control of armament and of armament produc- 
tion can be usefully discussed between the East 
and West. 

The necessary legislative action for ratification 
of the Paris Agreements has been completed by 10 
of the 15 nations, including France, the Federal 
Republic of Germany, the United Kingdom, and 
seven others. No reservations have been attached 
to the approval of the agreements in any case. 
Five parliaments have still to act — Belgium, Den- 
mark, Luxembourg, the Netherlands, and the 
United States. It appears that action in the 
European countries will be completed in a short 
time. 

The early entry into force of the agreements, 
which now can be envisaged, will be greatly in the 
interest of the United States. Indeed, any sub- 
stantial delay would seriously injure the interests 
of the United States. 

In 1952 the United States Senate acted before 
France acted, and France never did act favorably 
on those treaties. This time it seemed the part of 
wisdom for the United States not to be out in 
front. Now this deliberate deferring of United 
States action makes it the more important that 
there should be prompt action. 

The relevant documents were transmitted to the 
Senate by the President on November 15, 1954, 
and I trust that the Senate will now find it pos- 
sible to take prompt, favorable action on the two 
treaties which require Senate approval. 



The Need for Greater 
Public Understanding 

Remarks hy the President ^ 

One of the continuing problems of government, 
of course, is how to keep in touch with the grass- 
roots — how to get into the understanding of the 
last citizen, in the remotest hamlet, the things 
that he should know about his government, so that 
he can make intelligent decisions, and how, con- 
versely, the government is to know what those 
people are thinking. So, if nothing else, you can 
detect when there is a misunderstanding of facts 
(H-, indeed, maybe just a failure to have the facts 
that government could provide. 

Among all the agencies that have served a use- 
ful purpose in this regard, none has been more 
effective than this agency — the Advertising Coun- 
cil. Your accomplishments are referred to con- 
stantly in the circles of the Administration and 
always in terms of the greatest admiration and 
respect, and a feeling of obligation for what you 
are doing. 

I want to make this very clear because some of 
the things I would like to talk about may intimate 
that I think you have been guilty of some failures. 
I don't mean it in that sense either. But I do 
mean that I believe there is a tremendous oppor- 
tunity for all Americans in certain fields. Of all 
the people who are capable of taking advantage 
of those opportunities, this body by its past record 
would seem to be among the foremost. 

I don't think it is necessary to point out that 
life has become intricate. And here at home, 
among the intricacies of living, the intricate re- 
lationship that each individual has toward his 
government and toward his community and every- 
thing else has been one of the reasons why we 
have necessarily had educational bodies, of which 
this is one. 

But when we enter the international field, we 
run into complexities that seem almost to dwarf 
our understanding of what we are doing to our- 
selves when we accept, let us say, paternalistic 
gifts of the govermnent, without understanding 
for that we may be surrendering some of our 
ancient liberties. 



'Made before the lltli annual session of the Adver- 
tising Council at Washington, D.C., on Mar. 22 (White 
House press release ) . 



AprW I J, ?955 



609 



Ideological Struggle 

Today there is a great ideolojiical struggle 
going on in the world. One side upholds what it 
calls the materialist ic. dialectic. Denying the 
e.xistence of spiritual values, it maintains that man 
responds only to materialistic inlluences and con- 
-setjuently he is nothing. He is an educated animal 
and is useful only as he serves the ambitions — 
desii-es — of a ruling clique; though they try to 
make this finer sounding than that, because they 
say their dictatorship is that of the proletariat, 
meaning tliat they rule in the people's name — 
for the people. 

Now, on our side, we recognize right away that 
man is not merely an animal, that his life and his 
ambitions have at the bottom a foundation of spir- 
itual values. Now this — these facts seem to make 
it very odd that we fear the inroads that com- 
munism is making in the capture of tlie minds and 
souls of men. 

They are, too. They are winning great adher- 
ents in many areas of the world. And we wonder 
why. And then we say, "I5ut we are the ones that 
glorify the human; our doctrines ought to appeal 
to the man in Burma or in Viet-Nam or Formosa 
or .Mid-Africa or the Middle East.'' 

Something is happening. And we are not pre- 
.senting our ca.se very well. Now we do know that, 
of course, man has his materialistic side and his 
piiysical side, and there has got to be a decent, 
materialistic basis for the development of his cul- 
ture, his intellectual capacity, and the attainment 
of his spiritual aspirations. So we can't neglect 
that ; we neglect it at our peril. It is in that field 
that we have got to meet our enemy very success- 
fully. 



Importance of a Trade Plan 

For example, as we try to hold together the free 
world and try to lead it to cooperate spontane- 
ously in its opposition to connuunism, we develo]) 
metliods by which each country — each nation — 
and each individual, indeed, if we can bring that 
about — can achieve a continuous rise in his living 
standards to achieve that physical state of well- 
being where the.se other things can occupy his at- 
tention and lead him on to a more solid partner- 
ship with a country such as ours. 

So we develop a trade plan. Now a trade plan, 
my friends, is not just an altruistic method to 
open markets to the access of people all over the 



globe. Like all other foreign policy, its genesis is 
the enlightened self-interest of the United States. 
But it is in recognition of this fact, that, if the 
United States itself is to prosper, it must have 
means by which it can sell its products, and there- 
fore it has to buy others. 

But on top of that, it is a means of leading the 
free world to an understanding that this physical, 
intellectual, spiritual being — man — can cooperate 
under this kind of system effectively and to his 
greater advancement, rather than to surrender to 
the blandishments of communism. 

Now these are complicated subjects. "Wlien we 
talk about these principles, they have a different 
application in every subject, in every nation; in- 
deed they have a different application in every 
sector of our own country. 

But it would be fatal, in my opinion, here at 
home to allow the accumulated minor objections 
of each district or of each industry- — because of 
real or fancied damage — to an enlightened trade 
policy, to defeat us in this great purpose of the 
economic union — a legitimate economic union of 
the free world in order that it may cleave to these 
great spiritual truths, which in turn make it a 
unity in opposing communism. 



Helping Others To Understand 

What I am trying, without benefit of developed 
argument, is to express to you what is in my heart 
and mind, to convince you that, valuable as your 
work is at home — as much as it must be continued 
in combating those who are losing confidence and 
faith in our countr}- — we must undertake the task 
of laying before the people of the world the facts 
of today's life. Those are the facts of today's 
struggle, and the ways and means by which we 
may all cooperate to the greater security of all and 
to the greater prosperity of all. 

To saj' that the solution of such a problem can 
be accomplished without acute pain being suffered 
here and there, or by some locality or by some 
group, would be completely silly. Of course, there 
is going to be pain in every cure. There is jiain 
to the operation that restores usefulness to a broken 
leg, or any other kind of o])eration. We are not 
going to do any of these things without a price. 
But if we understand ourselves what we need 
to do in the world to advance our own interests, 
economically and from the standpoint of security, 
to achieve and maintain the values that we see in 



610 



Department of State Bulletin 



private enterprise — understanding how that means 
communion and trade with other countries — then 
we can undertake the task of helping others to 
understand it also. 

It is a very subtle job, I should say. The United 
States cannot be in the position of just preaching 
to others and say, "See how successful we are. 
Now you just get on the bandwagon and do the 
same way and you will have the same results." 
Everybody has got to take these great principles 
and interpret them in his own way, applying 
things in his own way to his own task. Otherwise 
it would not be freedom, and it would not be the 
kind of decision in which we believe. We believe 
that everybody should, so far as possible, decide 
for themselves. 

A Job for Every American 

Now this is what I honestly am convinced of : 
that unless we make it possible, through enlight- 
ened methods, for the free world to trade more 
freely among the several parts of that free world, 
we are not going to win the ideological battle. I 
do not expect us to fail in this process. But I 
do believe that every American, dedicated to his 
own country and proceeding from that place, can 
be helpful if he tries (a) to get his fellow Ameri- 
can to understanding what is really going on in the 
world and (b) to get others to understand it with- 
out necessarily preaching at them. 

I am not pleading for any special form or any 
special detailed method of doing this. Groups 
such as this have great staffs. You dig out the 
facts. You put them together. From those facts 
you draw reasonable conclusions, and then you 
take those conclusions as the basis of a plan that 
you start out to place before others and get them 
to accept it. 

So I am really pleading for an intelligent look 
at the great world today. How quickly you will 
find that every problem in the great world atfects 
us at home. We cannot escape them. We are 



part of it. We are intertwined. Our future and 
lives, even our freedoms, may be intertwined with 
theirs. If we can work that one out, we can help 
the world forward in this kind of union, one that 
is based upon our great spiritual belief that man 
is a dignified individual and is not the slave of the 
state; that every man has a right to aspire toward 
intellectual advancement, cultural advancement, 
and with a decent economic base on which to do 
these things. 

If we get to going forward in that concept and 
each doing his legitimate and proper part, there 
is no more chance for communism in the world 
than there would be for one of us to take off and 
fly to the moon without the aid of science. 

So I came over here this morning, fir.st, to say 
thank you very much for what you have done, and 
to say that in my belief what you can do is far 
greater than all you have accomplished in the past. 
I think I have met every year with this group. 
There is no group I would rather meet with. I 
believe in you. I believe in what you are doing. 
And I believe that, therefore, because you are so 
good, you can't put any limit, geographical or 
otherwise, on your work. 



Former Senator Upton Named 
to German Review Board 

The Dei^artment of State annomiced on March 
28 (press release 169) that former U.S. Senator 
Robert W. Upton of Concord, N. H., has been 
named by the Secretary to serve as the U.S. mem- 
ber of tlie Board of Review established by the 
law of the Allied High Commission for Germany 
of May 1950 which governed tlie reorganization of 
the German coal, iron, and steel industries. This 
Board, which will be continued under the Paris 
Agreements, has jurisdiction to review orders is- 
sued under that law to determine whether there 
has been fair and equitable treatment of claimants. 



April 11, 1955 



611 



Visit off Prime Minister Sceiba of Italy 



The Prime Minis fcr of Italy. Mario Sceiba, and 
the Italian Minister of Foreign Affairs, Gaetano 
Murtino, made an official vis-it to Washington 
March 27 to 30. Following are texts of the final' 
communique isstted at the conclusion of their visit; 
a joint statement on their discussions loith Presi- 
dent Eisenhower; an address by Mr. Scclba before 
the United States Senate; an announeeinent of the 
signing of tax conventions with Italy, together 
uyith the remarks of Secretai-y Dulles and Mr. 
Martino on that occasion; and an annoimcement 
of the review of U.S. -Italian coopei'ation in peace- 
ful uses of atomic energy. 



FINAL COMIVIUNIQUE 

Prpss release 176 dated March 30 

Tlie Prime Minister of Itiily, the Honorable 
Mario Scclba, and the Minister of Foreifjn All'airs, 
the Honorable Gaetano Martino have today con- 
cIii(lo<l their official visit in Washin<;rton where 
tiicy have been the guests of the United States 
(lovernment. 

The visit provided a welcome opportunity for 
President Eisenhower and Prime Minister Scelbu 
as well as for Secretary of State Dulles and For- 
eifrn Minister Martino to renew tlieir acquaint- 
ance. It also served to emphasize the cordiality 
of the relations between the United States and 
Italy and the friendship between the two peoples. 
Tiiis cordiality was at all times evident in the 
e.\clian<,'e of iileas between Prime Minister Sceiba 
and Foreijrn Minister Martino and President 
Eist-nhower, Secretan- of State Dulles, Secretary 
of Treasury Humphrey, Secretary of Defense Wil- 
son and Governor Sta.ssen. the Special Assistant 
to the President on Disarmament and Administra- 
tor of the FoA. 

In the spiirt that inspires the lelat ions between 

612 



the two countries and their partnership in the 
North Atlantic Treaty Organization, the Italian 
Prime Minister and Foreign Minister reviewed 
with the Secretai-y of State and other members of 
the United States Government various aspects of 
the international political situation. 

They discussed, among other things, the status 
of East- West relations and agreed on the neces- 
sity of making every effort, together with their 
allies, to reach a solution of the most important 
international questions which affect the defense 
of the Free World, the strengthening of the West- 
ern Community and the maintenance of peace. 
The Secretary of State and the Italian Foreign 
Minister, confirming their belief in peaceful ne- 
gotiation of international problems, expressed 
their hope that it will be possible soon after rati- 
fication by all the signatories of the Paris Agree- 
ments is completed, to find the basis for a truly 
fruitful conference with the Soviet Government. 
To tliis end and in the light of the most recent 
developments they have agreed to keep in con- 
stant touch. 

AVith regard to the problem of armaments, they 
agreed that its solution should be sought by fur- 
ther exploring the possibility of reaching a gen- 
uine limitation of armaments, both conventional 
and non-conventional, on the basis of effective in- 
ternational controls. 

The leaders of the two governments noted with 
satisfaction the advanced state of the ratification 
of the Paris Accords and found themselves in 
agreement that Europe, in its own and in the gen- 
eral interest, should continue its efforts to achieve 
an ever greater economic and political unity. The 
Secretary of State assured the Prime Minister and 
the Foreign Minister that the United States wel- 
comes continued Italian initiative in this dii'ec- 
tion along with that of other European countries. 

With the Secretary of Defense matters of mu- 

Oeparfmenf oi Sfa/e Bulleltn 



tual interest concerning the defense of the Western 
World and the military collaboration of the two 
countries in Nato were discussed. 

Prime Minister Scelba expressed to the Presi- 
dent of the United States the thanks of the Italian 
people for the help received in various forms from 
1945 to date. The President in turn expressed 
his appreciation of Italy's efforts in the economic 
field, assuring him of the continuing interest of 
the United States in these matters. In the course 
of their conversations with other United States 
officials particularly with the Secretary of the 
Treasury and the Director of Foa, the Italian 
Ministers reviewed the many economic aspects of 
Italo-American relations with a view to achiev- 
ing closer cooperation in this field as well. The 
special needs of the Italian economy for capital 
were included in the review. In that connection 
the representatives of both governments noted the 
important role of private investment and in par- 
ticular expressed their gratification at the progress 
in the consideration by the International Bank for 
Reconstruction and Development of the loan ap- 
plication made by Italy. 

In the framework of economic cooperation be- 
tween the two countries, two treaties designed to 
eliminate double taxation in the case of income 
and estate taxes were signed by the Foreign Min- 
ister and the Secretary of State. 

Finally, all participants in the conferences 
agreed to encourage cooperation between Italy 
and the United States in the peaceful uses of 
atomic energy which hold such great futui-e prom- 
ise for the welfare of the peoples of both nations. 
The specific developments that have resulted from 
current discussions between representatives of the 
Italian Government and the U.S. Atomic Energy 
Commission have been set forth in another joint 
communique today. 



DISCUSSIONS WITH PRESIDENT EISENHOWER 

White House pre.ss release dated March 28 

The President received and had discussions with 
His Excellency, Mario Scelba, Prime Minister of 
Italy, who is making an official visit to this 
country. 

The Prime Minister was accompanied to the 
White House by His Excellency, Gaetano Mar- 
tino, Foreign Minister of Italy; His Excellency, 
Manlio Brosio, Italian Ambassador to the United 



States; Massimo Magistrati, Director of Political 
Affairs, Italian Ministry of Foreign Affairs ; and 
Paolo Canali, Adviser to the Prime Minister. 

The Secretary of State, John Foster Dulles; the 
American i\jnbassador to Italy, Mrs. Clare Boothe 
Luce; and the Assistant Secretary of State for 
European Affairs, Mr. Livingston Merchant, were 
in attendance with the President. 

The President and the Prime Minister reviewed 
the general problems of East -West relations as 
they affect the peace and security of the world 
today. They also discussed aspects of Western 
defense pertaining to the partnership of Italy and 
the United States in the North Atlantic Treaty 
Organization. 

Developments in the creation of the Western 
European Union were also touched upon and the 
President expressed to Prime Minister Scelba the 
gratification of the American people at the im- 
portant role Italy has been playing in the carry- 
ing forward of all measures leading to Western 
European integration and the solidarity of the 
North Atlantic community. 

After the discussions were concluded, the Presi- 
dent and Airs. Eisenhower entertained at an offi- 
cial luncheon at the White House in honor of the 
Prime Minister and Signora Scelba and their 
party. 



ADDRESS BY MR. SCELBA BEFORE SENATE' 

It is indeed an honor for me to come before the 
Senate of your great Republic. Let me thank the 
President of the Senate for his greeting and his 
words. But my thanks go on behalf of my coun- 
try to all the distinguished Members of the Senate. 
The decisions taken here in recent years have 
brought a notable contribution to our democracy 
and to our morale and our material recovery. 

I must confess I am moved as I stand in this 
place where so much has been said of Italy and 
so much has been done for Italy. The American 
taxpayer has shouldered considerable burdens, for 
your political wisdom, your generosity, and your 
experience have urged you to identify the cause of 
tlie freedom and the welfare of European jjeoples 
witli the interests of your country. 



' As interpreted by A. Jos^ De Seabra of the Division 
of Lanfruage Services, Department of State. Reprinted 
from Cong. Rcc. of Mar. 30, p. 3434. 



April 11, 1955 



613 



Our recovery in Italy is today an accomplished 
fact. We are now tiuklinj; the structural prob- 
lems which are nature's lefjacy to our country. 
We are determined to solve them, for that is es- 
sential if we are to consolidate democracy. 
Sacrifice and hard work will be required of us. 
Tiiey have always been the lot of our people, 
altiiouph this iius not always been acknowled<;;ed. 

Hut history and our sense of responsibility point 
out our course, for we know full well what would 
Ix'fall the civilized nations, and foremost among 
tiiem our country, if Italy were to lose her liberty. 
We know it full well, and we can visualize it better 
tlian can anyone else. 

From this knowledfje sprinji our determination 
and our resolve to safeguard democracy and our 
freedom. We know that in safeguarding our 
freedom we safeguard the freedom of others. 

The fact that our friends show concern, and at 
times unjustified alarm, about our future proves 
how interdependent we are, and how the weakness 
of one of us is a source of weakness, economic or 
military, for all the community. 

Our interests, therefore, coincide, I>;t us unite 
and cooperate ever more closely. That is the very 
foimdation of all our foreign policy, which stands 
for the Atlantic Alliance and the integration of 
Kuro|)e. Our unity must be not only military, but 
political and economic. 

(lood news has come to us from Europe. After 
our ratification of the Western Emopean T^nion, 
the first on the Continent, the Euroi>ean ideal is 
slowly materializing. Europe is in the making. 
I^et us work without undue haste, but without de- 
lay, in order that century-old nationalisms may 
1)0 merged and integrated. 

European political unity and the creation of a 
single market, with free movement of men and 
goods, will strengthen the Atlantic .system in its 
lOastern reaches, and will relieve America of its 
responsibilities and obligations in a democratic 
community. This will consolidate the security of 
free j)eople-s and will make for ])rosperity and 
peace. 

The other day I said — and I wish to repeat it— 
that friendship between the United States and 
Italy is a constructive element in the achievement 
of our community aims; and the community is, 
in turn, one more link in the solid chain of our 
friondlv relations. 



SIGNING OF TAX CONVENTIONS 

I'rcss r.-li-;i«cs 17.'! iind I'Ti ilntoil March 30 

Department Announcement 

On March 30, Secretary Dulles and Gaetano 
Martino, Italian Minister of Foreign Affairs, 
signed at Washington two conventions between 
the United States and Italy for the avoidance of 
double taxation and the prevention of fiscal eva- 
.'••ion, one relating to taxes on income and the other 
relating to taxes on estates and inheritances. 

The provisions of these conventions follow, in 
general, the pattern of tax conventions entered 
into by the United States with numerous other 
countries. The conventions are designed, in the 
one case, to remove an undesirable impediment 
to international trade and economic development 
by doing away as far as possible with double 
taxation on the same income and, in the other 
case, to eliminate double taxation in connection 
with the settlement in one country of estates in 
which nationals of the other country have 
interests. 

So far as the United States is concerned, the 
conventions apply only with respect to United 
States (that is. Federal) taxes. They do not 
ap[)ly to the imposition of taxes by the several 
States, the District of Columbia, or the Terri- 
tories or possessions of the United States. The 
Italian taxes to which the conventions apply are 
the taxes imposed by the national government. 
They do not apply to the imposition of taxes by 
provinces and municipalities. 

The conventions will be brought into force by 
the exchange of instruments of ratification. 
Upon entry into force, the income-tax convention 
will be effective as of January 1 of the year in 
which the exchange takes place. Uj)on entry into 
force, the estate-tax convention will be applica- 
ble to estates or inheritances in the case of persons 
who die on or after the date of the exchange. 

Each country will take such action as is neces- 
sary in accordance with its own constitutional 
procedures with a view to ratification. The con- 
ventions will be submitted to the United States 
Senate for advice and consent to ratification. 

Remarks by Secretary Dulles 

The two tax conventions which His Excellency, 
the Italian Foreign Minister, and I have just 
signed remove what have l)een contimiinff causes 



614 



Deparfmenf of Sfafe Bulleftn 



of inconvenience for citizens of each country re- 
siding and working in the other. 

Tliese conventions — one rehiting to taxes on in- 
come and the other relating to taxes on estates and 
inlieritances — represent major progress in the 
elimination of double taxation as a problem be- 
tween the United States and Italy. Double taxa- 
tion causes complex and difficult problems for 
our citizens and impedes international trade and 
discourages private investment between countries. 
Thus it affects international relations in today's 
world. 

It is therefore particularly gratifying that ne- 
gotiations have now been concluded successfully, 
thus permitting these conventions to be signed 
today. 

Remarks by Foreign Minister Martino 

We believe that the signature of these two con- 
ventions shall contribute to eliminate obstacles 
and difficulties in the economic field in favor of 
nationals and enterprises of the United States and 
Italy. 

The convention regarding the double taxation 
on estates and inheritances provides for a more 
equitable regulation of the taxation on estates. 

The convention regarding double taxation on 
income will not fail to give its beneficial i-esults to 
the economic and conunercial relationship between 
the United States and Italy. 

Its signature takes place a few days after a bill 
on investments of foreign capital in Italy has been 
introduced in the Italian Parliament. It pursues 
aims which are mostly similar and shall contribute 
to favor the investment of private capital in the 
two countries and the exchange of technical know- 
how. 



PEACEFUL USES OF ATOMIC ENERGY 

Press release 174 dated March 30 

The Prime Minister of Italy and the Secretary 
of State reviewed the progress made in developing 
closer Italian-American cooperation in the field 



of peaceful uses of atomic energy in accord with 
President Eisenhower's atoms-for-peace pro- 
posals. 

Negotiations were begun looking toward the 
conclusion of an agi-eement of cooperation under 
the U.S. Atomic Energy Act of 1954: between 
Italy and the United States. An Italian teclini- 
cal mission under the leader-ship of Professor 
Francesco Giordani, president of the Italian Com- 
mittee for Nuclear Research, hixs been discussing 
plans for further development of the Italian 
atomic energy program with representatives of 
the Department of State and the U.S. Atomic 
Energy Commission. 

Professor Giordani indicated that his Govern- 
ment would like to construct a nuclear research 
reactor of the "CP-5 type" similar to the one at 
the Argonne National Laboratory near Chicago. 
Conclusion of an agreement for cooperation would 
enable the United States to provide technical as- 
sistance and the necessai-y amoimt of uranium fuel 
for the first Italian I'eactor. 

In anticipation of formal agreement, the United 
States has agreed in principle to make available 
to the Italian Government 10 tons of heavy water 
which would be used in the proposed research re- 
actor. 

The United States also indicated that Italian 
students would be considered for participation in 
the second course at the newly opened School of 
Nuclear Sciences and Engineering at Chicago 
scheduled to begin late in the fall of 1955. 

During the course of the Prime Minister's visit, 
the United States Government presented to the 
Government of Italy a complete technical library 
containing all of the unclassified and declassified 
information on the peaceful uses of atomic energy 
that has been published in the United States. 

Consistent with the peaceful purposes of the 
program established by President Eisenhower, the 
Italian mission has devoted particular time and 
effort in important exchanges of views with the 
American representatives to lay the ground for 
intensive cooperation in the areas of medical and 
biological applications of atomic energy. 



April 17, 1955 



615 



American Diplomacy at Work 



hy Clare Boothe Liice 
Ambassador to Italy ' 



Among many happy associations with the 
people of Clevehmd, I recall tonight especially a 
visit I made here in 1047. In that critical postwar 
year, your organization sponsored the Cleveland 
Forum on World Affairs, which brought to this 
city 20 or 30 postwar leaders from every part of 
the world. One of them was the Prime Minister 
of Italy, Mr. Alcide De Gasperi. lie was then 
engaged in the most difficult of all human enter- 
jirises — the creation of a modern democratic 
republic on the smoldering ruins of a dictatorship. 
The hazards that faced him were not only the 
ti-eacherous evils of connnunism and fascism but 
the miasma of confusion, doubt, cynicism, and 
even despair, born of the devastation of war. 

Your invitation gave Mr. De Gasperi his first 
chance to see our life here, to sense what we mean 
by democracy and freedom and prosperity based 
on equal opportunity and private initiative. 
Mr. Do Gasperi often referred to that visit in his 
talks with me before he died, and always with 
warmth and gi-atitude. I have no doubt that his 
days in Cleveland strengthened his faith in 
America and so strengthened him in his efforts to 
create a new Italy in a new lOurope. 

Next week another distinguished Italian Prime 
.Minister comes to America — Mr. Mario Scelba. 
lie comes officially to meet with President Eisen- 
hower and the Government in Washington. But 
he will also address the American people on sev- 
eral occasions. He may be counted on to tell us 
about the Italian situation today, with all the 
authority of his high office. 

And the American people are, I think, in a good 



' Address mnde before the Clevelnnd Council on World 
Affnlrs. Clevelnnd, Ohio, on Mar. 23 (press release 159 
dntrd Mnr. 22). 



position to listen to what he will have to say. 
For evidently they have been paying considerable 
attention to this subject. It seems to me that there 
has been a marked increase in the information 
about Ital}' made available to the news readers, 
i-adio listeners, and TV viewers of America. This 
is a great credit to the press in all its branches, 
and I should like to take this oppox'tunity of salut- 
ing correspondents, commentators, and responsible 
editors for a job well done. 

Certainly all of you are now aware that com- 
munism is still a threat to the young Republic 
of Italy and that, while economic aid is necessary, 
it takes more than money to overcome communism. 
Man does not live by bread alone — nor does he 
solve political and moral problems by dollar^ 
alone. 

It has been duly reported to you that the Italian 
Government has recently taken somewhat stronger 
measures against the internal menace of commu- 
nism. You know that communism has been losing 
some ground in the industrial north of Italy but 
is making a strong attack in the south, even as the 
south, partly with American aid, is emerging from 
century-old poverty. Certainly you are as happy 
as I am that, in the field of Italian foreign policy, 
there has been considerable progress. Not only 
has the dangerous Trieste question been peacefully 
resolved at long la,st, but the Italian Parliament 
voted strongly for cooperation with the West, in 
the form of the London accords, with almost 100 
percent unanimity except for the pro-Cominform 
parties of the Left. 

These would be the high spots of my report to 
you on Italy. If I do not elaborate on them, it is 
partly l>ecause I think you are already well in- 
formed on this subject, partly because you are 
about to hear the Prime Minister's own account 



616 



Department of Sfafe Bulletin 



of his country's foreign-policy position, policies, 
and programs — and partly for another reason. 

That other reason is that I have got sometliing 
very much on my mind which I venture to believe 
that you, who stand in the forefront of intelligent 
concern for the success of our country's foreign 
policy, will agree is a subject which has been too 
much neglected — and will continue to be neglected 
only at our greatest peril. That is the subject of 
the Foreign Service of the United States and the 
necessity of having a stronger Foreign Service to 
carry out, in 70 countries of the world, the defense 
of the free world on the diplomatic front. 

Need for Strong Foreign Service 

Two years ago you and I — that is, most of the 
people here tonight — were in almost the same po- 
sition as regards American foreign policj^ We 
were all deeply concerned about it. We knew 
something about it. We had views — perhaps very 
strong views about it. 

In these last 2 years, something has happened to 
me which hasn't happened to most of you. As 
j'our i\jnbassador to Italy, I've been in — deep in — 
the foreign-policy business. What has been the 
result of this experience ? That would take many 
hours to tell j'ou. But one thing has been borne 
in upon me, and that is that it's not much use to 
Americans to have highbrow talks about foreign 
policy, to argue about it, editorialize and speechify 
about it, unless Americans see to it that they have 
a Foreign Service which is strong enough to carry 
out the foreign policy they are finally agreed 
upon. They must have a Foreign Service strong 
in every sense — strong in manpower, strong in 
orain power, strong in resources, and above all, 
strong in conviction and courage and morale. 

All Cleveland businessmen know you don't make 
I great business by just sitting around philosophiz- 
ng or putting in conversational overtime at the 
1 9th hole. You have to have a great organization 
o have a great business. If you haven't got one, 
fou've got to build one — a first-class production 
lepartment and a first-class sales department and 
'i research department, and so on. Certainly the 
op policy — the board of directors' policy — must 
le clear and wise and, if you like, smart. But, it's 
10 use having a fine policy unless you have an 
Tganization able and eager to turn this policy 
Qto reality — an operating organization of high 
bilitv and hijrh morale. 



Every business executive either learns this 
quickly or he goes out of business. And every 
administrator of a university, school system, or 
hospital knows it. Certainly every Cleveland 
high-school boy knows that the defense of his 
country depends on more than splendid generals 
with brilliant blueprints for battle — it depends 
on a great military organization, manned by dis- 
ciplined, trained, courageous, well-equipped oflS- 
cers and men whose morale is high. If he doesn't 
know this, he finds it out the first day he encounters 
his draft board. 

Foreign policy is the strategy of diplomacy. 
Strategy, in military terminology, is the plan — 
the blueprint — for winning a battle or winning a 
war. But strategy is cai-ried out by tactics — by 
the movement of troops in the field ; by the proper 
orders for disposition and attack to divisions, regi- 
ments, companies, and platoons; by, in the lasl 
analysis, the combat skill and the fighting will 
of the soldier in the front line. 

That's what I want to talk to you about to- 
night — what happens to foreign policy when it 
hits the front lines of our diplomatic battlefields 
all across the world. 

Myths About Diplomats 

It is precisely here that I find the most disturb- 
ing gaps in our knowledge. I must be frank and 
say that I find too many people who still think 
of our diplomats abroad — of our Foreign Service 
which provides our diplomatic infantry — in terms 
of moth-eaten cliches and stereotypes that went 
out with the 19th century. 

There are a number of silly myths about diplo- 
mats, especially about what j'ou might call "the 
big brass" among the diplomats. I refer to am- 
bassadors. There is the myth that has created the 
image of the ambassador in top hat, cutaway coat, 
and striped trousers who does nothing but attend 
colorful official functions, government ceremonies, 
and glamorous banquets, occasionally making an 
innocuous speech in which he boosts, in flowery 
language, all the virtues and accomplisliments of 
the country to which he is accredited. 

Then there is the old, old myth that is best 
summed up in the ancient description — it was first 
coined in the 17th centm-y, believe it or not, which 
shows you how old a myth it is — that an ambassa- 
dor is "an honest man sent to lie abroad for his 
country." 



ipri/ 17, 1955 



617 



Then there is the much more modem myth — 
modern because it has g^rown up with the immense 
acceleration of the spcexl of modem conununica- 
tions — tlio niytli of the ambassador as a {glorified 
messenger boy, with no responsibility, no initia- 
tive, no will or volition of his own, who merely 
rushes from embassj' to foreign office and back to 
embassy, carrying the messages that have been 
telegraphed to liim from AVashington and tele- 
graphing back to Washington, in turn, the mes- 
sages given him by the government to which he 
is accredited. 

Mytlis always die hard. I have no confidence 
that what I am going to say will kill off, once and 
for all, any of the myths I have just recited. But 
at least I shall give myself the pleasure tonight 
of shaving olT some of the long whiskers on these 
three. 

It is true, of coui-se, that ambassadors must on 
certain occasions don the formal official uniform 
of tophat, cutaway coat, striped pants. One of 
the advantages of being a woman ambassador is 
that I am spared the tophat — and the striped 
pants! But I am not spared the occasions when 
they are worn. And these official occasions, be- 
lieve me, can sometimes be very long, very ardu- 
ous, very dull — and very useful to one's country. 
For the market place of diplomacy, the place 
where diplomats excliange views, news, give cal- 
culated hints of their own, and get uncalculated 
glints of the foreign policy of other nations are 
often these very occasions. The official receptions 
and banquets, the so-called "diplomatic parties," 
are the indispensable hunting gi-ound of the dip- 
lomat seeking to gather information or to further 
his country's policies. It is totally irrelevant 
whether or not he pursues his game in or out of 
striped pants. 

It is true too that diplomats may occasionally, 
for reasons of high policy or national security, 
avoid giving direct answers to the searching ques- 
tions of other dii>lomats or tell them perhaps a 
little less than the whole truth. But the concept 
of the diplomat as a habitually Machiavellian liar 
went out with the dark ages of diplomacy. And 
for a very simple reason. The primary task of an 
ambassador accredited to a friendly government 
is to maintain and promote good relations be- 
tween that government and his own. In this 
sense, dii)lomacy is charity in the conduct of inter- 
national affairs. It is absolutely essential, for 



carrying out that task, for a diplomat to establish 
courteous relations, honest relations, with the lead- 
ers of the country in which he finds himself. And 
all of us know, from our own private experience, 
that it takes just one good lie, found out, to de- 
stroy confidence. No, diplomats are no longer 
"sent to lie abroad for their country." America's 
first great diplomat — an amateur, Benjamin 
Franldin — said: "Honesty is the best policy." 
And so it is — in the conduct of private life, busi- 
ness life, and in diplomacy. 

The Job of an Ambassador 

The latest, most modern myth, the mytli of the 
"glorified messenger boy" is the easiest of all to 
dispose of. The way to do so is to tell you what 
an ambassador's job really is. 

An American ambassador nowadays has to be 
much more than merely the chief of a diplomatic 
mission. Much more even than the representative 
of his Government to a foreign country. An am- 
bassador these days becomes in the wicU'st sense the 
representative of his people to the people — as well 
as the government — of the coimtry in which he 
works. 

In the old days, diplomacy was chiefly concerned 
with policies and politics. Today the field of di- 
plomacy has broadened to cover virtualh- every 
phase, every aspect, every activity of human so- 
ciety — politics, economics, social welfare, com- 
merce, trade, industry, agriculture, shipping, 
transport and communications, education, cul- 
ture, art, science, and religion, finance, invest- 
ment, wages, incomes, standards of living, and in- 
dexes of productivity. Modern diplomacy has to 
concern itself with all of these things' and many 
more. Wliy ? Because in these days of the inter- 
dependence of nations, all these aspects of the life 
of a nation are important to other nations — and 
to a greater or lesser degree affect the relationships 
between nations. 

Let me try to put that into concrete terms. It 
is easy to understand why we should bo interested 
in Italian politics. The political complexion of 
Italy's government — the policies it pursues both 
in domestic and foreign aft'airs — are important to 
us because Italy is one of our major allies in Eu- 
rope, a member of Nato and of the new Western 
European Union now forming. She lies in a 
vitally important strategic position, commanding 
t he narrows of the central Mediterranean. Italian 



618 



Department of State Bulletin 



politics are, obviously, of enormous concern to the 
United States. 

The importance of Italy's economy is also easy 
to understand. Without a stable, healthy economy 
political stability in a country becomes difficult to 
maintain. We want our ally Italy to be politically 
stable. Therefore we are doing all we can to help 
Italy to maintain and improve her economic 
health. 

Yes, you may say, those are obvious. But what 
about these other things. Wliy, for example, 
should we concern ourselves with Italian educa- 
tion? With Italian science? With Italian pop- 
ulation statistics? 

^ We are directly concerned with Italian educa- 
tion because we have a large and eifective educa- 
tional exchange program with Italy under both 
the Smith-Mundt and Fulbright Acts. We spend 
well over $1 million a year to promote exchanges 
of educators, professors, teachers, students, be- 
tween Italy and the United States— to the end 
that both countries will profit by the increased 
understanding each of the other. 

Italian science? We have a gi-owing program 
for the exchange of scientific information, par- 
ticularly in the field of the use of atomic energy 
for peaceful uses. We are making available to 
Italian scientists radioactive isotopes for medical 
and other research. Last year in Eome we had 
an immensely successful exhibit, which we called 
"Atoms for Peace." ^ That exhibit was seen by 
more than 2 million people and did enormous good 
in stimulating the awareness of the Italian public 
to the potentialities of atomic energy for peaceful 
purposes. 

Italian population statistics ? We have another 
large progi-am in Italy which aims at helping Italy 
solve her serious problem of overpopulation by 
assisting Italians to emigrate to other coimtries. 
Those are just a few examples. I could go on 
citing others for hours, in every field of Italian 
life I have mentioned. There are Americans, rep- 
resentatives of our Government, working in every 
5ne of those fields today throughout the length and 
Dreadth of Italy— from the Alps to Sicily, and 
'from the industrial cities in the north to the farm- 
ands of the south. 

But how on earth, you may well ask, how are 
lU these inmaensely varied and various activities 
>rganized? How are they directed, controlled, 
■oordinated ? 



" Bulletin of June 28, 1954, p. 982. 
4pn7 7 7, 7955 



That brings us to what to me is one of the most 
interesting developments in modern American 
diplomacy. That is what we call the "Embassy 
country-team" concept. You can well understand 
that not all, or even a large part, of these very 
varied activities can be carried on by the State 
Department and the Foreign Service alone. The 
demands for special knowledge, special skills and 
experience are too great. So the United States 
is represented in Italy by people from many other 
departments and agencies of government besides 
the Department of State. There are representa- 
tives of Governor Stassen's Foreign Operations 
Administration dealing with the problems of eco- 
nomic aid and technical assistance. There are 
representatives of the United States Information 
Agency to handle information matters, to run the 
information program and man the information 
centers and libraries in various cities— to see that 
the truth about America is made known to the 
Italian people. There is a large group of officers 
of the Army, the Navy, and the Air Force helping 
Italy with her defense programs, helping her to 
become an efficient fighting ally on our side if an 
emergency arose. There are representatives of the 
Department of Agriculture, of the Department 
of Commerce, of the Treasury, all working in their 
special fields. 

Now, under the country-team concept, all these 
people work together as members of the American 
team. And the ambassador is, you might say, the 
captain of the team. Under the country-team 
concept, every American working for the Govern- 
ment in an official capacity in a foreign country 
takes his direction from the ambassador and is 
responsible to the ambassador for all his actions 
and activities. In turn, the ambassador is respon- 
sible to all the branches of government in Wash- 
ington, through the State Department, for the 
operations of the team under his command. 

Under the country-team concept there are daily, 
often almost hourly, decisions to be taken in- 
volving all the varied activities of the team. Many 
of the decisions are taken by the various embassy 
section heads. But many are decisions which only 
the ambassador can take. And like the captain of 
a ship, an ambassador is never off duty. He is on 
call day and night, 24 hours a day, 7 days a week. 
If he is a dillydallier, a procrastinator, if he 
doesn't do his paperwork and his homework, if he 
refers too many minor matters to Washington for 
decision, if he is not willing to take and to exer- 

619 



cise authority over his touin, he simply cannot 
these days hist long as an ambassador. 

Very often some visiting gi'oup of Americans 
will drop in at the Rome Embassy just, as they 
put it, to shake the Ambassador's hand. Invaria- 
bly one of the group will ask this question : "Please, 
Mrs. Luce, tell us in a few sentences just what does 
an ambassador do ?" Well, besides shaking hands 
with about 5,000 visiting Americans who dropped 
in to ask that (piestion, here are some of the things 
I have done in Italy in the past year, besides con- 
ducting in my ollices the operations I have just 
described : 

Visited a number of Italian fairs, such as 
Milan's great trade fair; spoken before American 
business gi'oups; attended innumerable cultural 
alTaii-s, such as the opening of "Porgy and Bess" 
in Naples, the inauguration of the Johns Hopkins 
School of Special Studies at Bologna; attended 
many gatherings where diplomats made lengthy 
and often informative discourses on their own 
countries' international policies; visited the Sa- 
lerno flood areas, the Sardinian drought areas; 
given and gone to innumerable receptions for 
visiting firemen from my own or other nations; 
visited the l^.S. Air Force at "Wiesbaden; and, of 
course, made countless short talks in Italian — or 
what at any rate I fondly believed to be Italian. 
Someone — I believe it was Charles Dawes who 
said, "Diplomacy is harder on the feet than on 
the head." 

The fact is that a modem American ambassa- 
dor — and this is as true of London, Paris, Bonn 
and elsewhere as it is of Rome — has to use fi'om 
early morning until past midnight, every day, 
everything he's got— heart, head, and limb — and 
all unstintingly. 

Now perhaps you can begin to see a little why 
the myth of the ambassador as a "glorified mes- 
senger boy" simply is not true. 

Delegation of Authority 

Plainly no ambassador can personally appear 
at every fimction where United States representa- 
tion is asked for or supervise every detail of the 
vast complex of operations that modern diplo- 
macy entails in a foreign country. There just 
aren't enough hours in the day for that. So the 
amba,ssador has to delegate his authority, just as 
the chairman of a big corporation, or the head of 
a great government department, or even the Pres- 



ident himself, has to delegate his authority as 
chief executive. 

In Italy, for example, I delegate my authority in 
matters of economic aid to my Chief of the For- 
eign Operations Mission. I delegate my authority 
in military matters to the Chief of the Military 
Assistance Advisory Group, ov to the senior Army, 
Navy, and Air attaches. I delegate my authority 
on information matters to my Public Affairs Offi- 
cer, wiio heads the United States Information 
Service in Italy. And in making all major deci- 
sions, I pay the greatest attention and rely greatly 
on the wide experience and advice of my Minister 
Counselor, a Foreign Service career officer with 
the permanent rank of minister. 

But I must repeat — the ambassador is finally 
responsible to the President for all that they do. 
If they go wrong, tlien the ambassador is the one 
who must assume the blame. If they go right, it 
is permissible for the ambassador to take some 
small share, at least, of the credit. For no am- 
bassador, however experienced, however hard- 
working, however wise, can do any better job than 
his team will let him do. The ambassador must 
lean heavily on the men on his team, on his politi- 
cal officers, his economic officers, his information 
officers, and all his other advisers in their various 
fields. If they are a very good team — as I believe 
mine in Rome is — then his job will be well done; 
if they are bad, it will be ill done. And as you 
know, the situation in the world today is so deli- 
cate and fraught with international tensions that 
the United States cannot afford to have any Amer- 
ican Embassy staffed by any but the best. 

And that brings me to the heart of the message 
I would like to leave with you tonight. Our Gov- 
ernment's varied activities abroad require many 
specialists working on the embassy country' teams. 
Not all of them are regular Foreign Service offi- 
cers. But the hard core, the backbone, the muscle 
and sinew and brain of any diplomatic mission 
must be, and must remain, the Foreign Sei-vice 
professionals — the men and women who have 
made diplomacy their life study, their life dis- 
cipline, and their life work. 

Now, let me say right otl' tliat man for man, and 
woman for woman, as I have met them in my own 
Embassy and in other Embassies in the past 2 
years, the United States Foreign Sei-vice organi- 
zation is good. It would rank high, by any objec- 
tive test, in ability, in effort, in loyal dedication, 



620 



Department of State Bulletin 



in experience, with that of any Foreign Service 
in the world. 

After 2 years of working with our professional 
diplomats, I must say I think it is a pity, a very 
great pity, that the American people do not know 
more about their own Foreign Service — as much 
at least as they know about their Marine Corps, 
or their Air Force, or their Army or Navy. There 
are, of course, good reasons for this. To begin 
with, it is a very small Service with a long and 
classical tradition — common to all Foreign Serv- 
ices of the world — of self-effacement. They do 
not "stir it and stump it, and blow their own 
trumpet." They serve in silence — and in these 
days when most organizations hire public rela- 
tions counsel to glorify and glamorize them, that 
means they suii'er in silence, too ! 

There are yet fewer than 1,500 officers all told 
on the rolls of the Foreign Service. Since most 
of them spend the gi-eater part of their lives over- 
seas, the American people have little chance to get 
to know them as individuals. The average Ameri- 
can only comes in contact with them when he is 
liimself abroad, when he sees them in the matter 
of his passport or his visa or some other official 
business. The Foreign Service has no private 
organization which supports it and promotes its 
welfare with the Congress and the public like the 
many organizations which support the interests 
of the armed services. The general public rarely 
hears about any of the activities or work of the 
Foreign Service and its officer corps, except in 
those unusual instances where an officer finds him- 
self, for political or other reasons, in the limelight 
of publicity. 

Tlie Foreign Service has long been seriously 
under strength for the job it has to do. During 
the war, reciniiting was almost entirely — and nec- 
essarily — suspended in favor of the armed forces. 
Since the war, for various reasons, mostly admin- 
istrative or budgetary, recruiting has been slow. 

Integration Program 

. Recently, under Secretary of State Dulles' ener- 
getic direction, major steps have been taken to 
rc(jrganize and reinvigorate the Foreign Service. 
As some of you may know, in March of last year 
he convened a Public Committee on Persomael, 
composed of a number of outstanding private citi- 
zens under the chairmanship of Dr. Henry M. 
Wriston, president of Brown University. 



This committee made a comprehensive analysis 
of the personnel problems of the Department of 
State and the Foreign Service. As a result of its 
study, the Committee made a broad series of 
recommendations designed to strengthen the De- 
partment and the Service.^ 

The Secretary strongly endorsed the Commit- 
tee's recommendations and directed that they be 
put into effect without delay. Much progress 
has already been made toward their implementa- 
tion. The vigor and determination with wliich 
the various phases of this complex program have 
been put into effect is indeed heartening. 

Under the integration program, as it is called, 
more than 2,300 additional positions in the home 
office in "Washington and at the posts overseas have 
been earmarked for staffing by professional career 
officers. This will permit the expansion of this 
key group of Federal personnel to a size com- 
mensurate with its responsibilities. 

From a long-range point of view, however, this 
approach provides only the framework within 
which the newly integrated service can grow and 
develop. The growth and development envisaged 
by the Secretary's program can only be achieved 
if, on a continuing basis, we are able to bring into 
the Service a fair share of the most promising 
young men and women in the country. To accom- 
plish this, the Department cannot compete with 
private industry in the offer of financial rewards, 
although material benefits enjoyed by members of 
the Foreign Service are already substantial and 
are being improved. The Foreign Service, like 
the armed services, must be a calling, a vocation, 
and a way of life. The young men and women 
who enter this field must in many ways subordi- 
nate their private lives to their work. Yet, from 
my experience with officers now in the Service, I 
am convinced from their devotion and their zeal 
that they find satisfaction and richness in their 
careei-s of service to their country. 

Under the present program, there is an urgent 
need for junior officers. These officers are selected 
through competitive examinations. To meet the 
current need, the Department is offering the en- 



' Toward a Stronger Foreign Service: Report of the 
Secretary of State's Public Committee on Personnel, Juns 
19-54, Department of State publication 5458, for sale by 
the Superintendent of Documents, U.S. Government Print- 
ing Office, Washington 25, D. C, 30 cents. 



April IT, 1955 



621 



trance exiuiiination twice in 1955. The first ex- 
amination will be held in cities throughout the 
country about June 21; the second will be held in 
December. Subsequently, examinations will be 
otFered annually in Deceml»er, and it is currently 
estimated that the Department will appoint ap- 
proximately 250 junior officers each year.* 

In support of this recruitment program, repre- 
sentatives of the Department are at the present 
time visiting a large number of colleges and uni- 
versities throughout the country. Ii^ach of you 
can participate in this program through your 
sympathetic undei-standing and appreciation of 
the work that is being done for you and for me 
by this devoted group of public servants, as well 
as by your active encouragement of promising 
young people to adopt the Foreign Service as a 
career. 

For my own part, in closing I want to tell yoa 
once again what I believe any impartial, objective, 
and intelligent observer would say is the chief 
handicap of our Foreign Service today. He 
would say it is too small, it is underpaid, and 
above all, it does not receive the moral support 
from the American people which it deserves. This, 
and largely this, is what is handicapping our For- 
eign Service. And this the enlightened people of 
America can correct through their Congressmen 
and Senators, and through their Government, and 
by their own personal interest in the problem. 

You Clevelanders, with your long record for 
passionate interest in our foreign policy, can help 
too. That is why I have tried tonight to put 
before you some of the problems of our Foreign 
Service. For the sake of the vital interests of the 
American nation and for the peace of the world, I 
know of nothing which is more important for 
enlightened citizens to take on than this problem — 
now. 

I know that if only your personal enthusiasm 
can be enlisted, this will be a great step forward 
in giving our country the greatest and finest For- 
eign Service any nation ever had. Surely that is 
the kind of Foreign Service our beloved country' 
deserves. 



* For a list of the looalltles where the examinations will 
bo held and for other details on the retTuitmont pro},Tani, 
see \Vio OpprtrtiinitiCK in the V.8. Foreign Service, De- 
partriii-ni df Slate publication 5748, for sale by the Super- 
intendent of Documents, U.S. Government I'rintinc Office, 
Washington 25, D.C., 15 cents. 

622 



1955 Amendments to Foreign 
Service Act off 1946 

The President on April 5 signed into law H. R. 
4941, Foreign Service Act Amendments of 1955 
(P. L. 22). The House of Representatives had 
passed the bill on March 23 and the Senate on 
March 30. The purpose of the legislation, as Dep- 
uty Under Secretary Henderson has stated, is "to 
improve and strengthen the Foreign Service in 
order that it may serve as a more effective instru- 
ment for the conduct of our foreign relations." 

Alost of the recommendations for strengthen- 
ing the Foreign Service that were made by the 
Secretary's Public Committee on Personnel could 
be put into effect without legislative action. How- 
ever, as was recognized by the Committee, certain 
changes in the Foreign Service Act of 1946 were 
necessary for complete implementation of the 
program. The major changes necessary, together 
with certain adjustments found to be desirable 
during 8 years of administration of the Act, are 
incorporated in the Foreign Service Act Amend- 
ments of 1955. 

The principal changes made by this legislation 
are outlined below. 



Lateral Appointments to the Foreign Service 
Officer Corps to Classes 1 Through 5 

In order that the integration of Departmental 
and Foreign Service Reserve and Staff officers 
into the Foreign Service Officer corps may pro- 
ceed, authority is granted in the bill for the lateral 
appointment to classes 1 through 5 of not more 
than 1,250 additional officers. To qualify for ap- 
pointment the bill provides that candidates must 
pass such "comprehensive mental and physical 
examinations" as the Board of Examiners for the 
Foreign Service may prescribe. Successful can- 
didates may be appointed at rates above the base 
rate for a class. The bill permits employees of 
other Federal agencies to be considered for lateral 
appointment but restricts to 40 the number that 
may be so appointed. 

Compensation and Benefits 

Tlie Public Committee was of the opinion that 
Foreign Service salaries were in general in line 
with those of other Federal employees but pointed 
out certain deficiencies in allowances and benefits 

Department of State Bulletin 



that should be corrected. The following changes 
are made in allowance and benefit provisions in 
the act by H. E. 4941 : 

Hardship Post Differentials. Differentials for 
service at hardshijD posts, now available to the 
Foreign Service Staff and to employees of other 
agencies, are extended to Foreign Service Reserve 
officers and Foreign Service officers. The latter 
have the option of receiving either the salary dif- 
ferential or extra credit toward retirement for 
periods of service at unhealthful posts. 

Home Service Transfer Allowance. A home 
service transfer allowance is provided to assist 
employees in meeting the "out of pocket" expenses 
incident to transfers from overseas posts to this 
country between foreign assignments. 

Education Allowance. Provision is made for 
partial reimbursement to employees stationed 
overseas for the costs of providing an elementary 
■ and secondary education to their dependents. The 
bill also authorizes payment for one round trip 
for each type of education to the United States for 
the purpose of securing an American secondary 
and college education. 

Retirement Credit for Military Service. Mili- 
tary service prior to becoming a Foreign Service 
officer will be credited toward retirement without 
cost. Amounts paid to the retirement fund for 
such coverage since April 1, 1948, will be refunded 
without interest. 

Medical Examination of Dependents. Medical 
examinations and inoculations will be provided 
to dependents without cost to employees. 

Other Changes 

Appointment of Reserve Officers. Foreign 
Service Reserve officers may be appointed for pe- 
riods of 5 years, instead of 4 as at present. 

Assignments to the United States. Assign- 
mints of Foreign Service personnel to the United 
Slates — presently restricted to 4 years — may be 
,, extended up to 4 more years under unusual cir- 
cumstances. 

Selection Out. The bases for the selection-out 
of Foreign Service officers are clarified and re- 
vised, including particularly the inclusion of a 
requirement that specified standards of perfor- 
mance be met and extension of selection-out to 
officers in class 1. Revisions are also made in 
benefits extended to officers who are selected-out 
jf the Service. 



Public Committee on Personnel 
Completes Second Review 



press release 162 dated March 23 

Secretary Dulles on March 23 made public the 
second audit rej^ort of his Public Committee on 
Personnel,^ headed by Dr. Henry M. Wriston, 
I^resident of Brown University, which met in the 
Department February 24-26, 1955. The Public 
Committee on Personnel was appointed by Secre- 
tary Dulles in March 1954 for the purpose of 
"making recommendations to the Secretary of 
State concerning measures necessary to strengthen 
the efl'ectiveness of the professional service." 

In releasing the Public Committee's report. Sec- 
retary Dulles again praised the Committee for its 
"continued generous assistance." The Secretary 
also indicated he was particularly impressed with 
the Committee's new recommendation to create "a 
new class of Foreign Service officer, that of Am- 
bassador of the United States," which designation 
would be conferred upon a few outstanding career 
officers who serve or have served as chief of 
mission. 



TEXT OF REPORT 

Februaky 26, 1955 
Dear Mr. Secretary : In accordance with your 
request, your Public Committee on Personnel has 
completed its second review of actions taken by the 
Department in carrying out your orders imple- 
menting our recommendations. 

Since our last meeting in October, 1954, Under 
Secretary Charles E. Saltzman has been succeeded 
by Deputy Under Secretary Loy W. Henderson 
as the principal administrative officer of the De- 
partment. The Committee is delighted with the 
appointment of Ambassador Henderson. He is a 
senior career Foreign Service officer and has served 
as such for over thirty years. Most recently Am- 
bassador to Iran, Mr. Henderson brings to his new 
assignment all that is finest in the F'oreign Service : 
courage, integrity and a determination to serve the 
best intei"ests of the United States. In addition 
to bringing promise of continuity to the principal 
administrative office of the Department — a condi- 
tion we feel absolutely essential to successful ad- 



' The first audit report (not printed here) was distrib- 
uted as a departmental notice on Nov. 4, 1954. 



AptW n, J 955 



623 



ministration — his appointment will encourage the 
membere of this dedicated corps of officers. 

Your committee is gratified to note the enthusi- 
asm with whicii Mr. Henderson and his immediate 
staff are devoting tliemselves to administrative 
improvements within the Department. 

The Committee is pleased to note that you have 
carried out its recommendation that the Foreign 
Service Inspection Corps be transferred to the 
Office of tile Deputy Under Secretary for Admin- 
istration and that your approval has been given 
for the transfer of the Foreign Service Institute 
to that office. The Connnittee desires to suggest 
that, upon the completion of the comprehensive 
security check initiated under Executive Order 
10450, renewed consideration be given to its orig- 
inal recommendation that arrangements be made 
for the issuance of honorable discharges for per- 
sonnel leaving the Department for reasons other 
than cause. 

The Committee recommends that the Depart- 
ment press for legislation establishing the statu- 
tory positions of Deputy Under Secretary of 
State and Deputy Under Secretai-y of State for 
Administration. 

The Committee invites attention to the fact that 
although a majority of the posts of ^Vmbassador or 
positions comparable to that of an Ambassador 
axe normally occupied by senior Foreign Service 
officers, the highest Foreign Service class remains 
that of Career Minister. The Committee recom- 
mends that consideration be given to establishing 
a new Foreign Service class, strictly limited in 
number — Ambassador of the United States. 

It is the opinion of the Conamittee that the es- 
tablisliment of the suggested class would mate- 
rially strengtlien the prestige of the Service both 
in the United States and abroad; would make the 
Service more attractive to the youth of the comi- 
try; and would sei-ve to keep in the Service some 
of the most talented Foreigii Service officers who, 
under present conditions, are tempted to leave the 
Service in order to accept positions in private 
industry. 

The class of Career Ambassadors should be lim- 
ited to officers who have served as Career Minis- 
ters for such period of years as prescribed by the 
Secretary of State. It is recommended, also, that 
the President be authorized to give the rank of 
Ambassador of the United States to sucli retired 
Foreign Service officers as may have served in an 
especially distinguished way as Chief of Mission 



for a prescribed period of years. The Career 
iVmbassadors should have a salary of $20,000 ; and 
the salaries of Career Ministers should be gradu- 
ated from $14,300 (the present salary of a Career 
Minister) to that of $18,300. 

The Committee also recommends that Section. 
821 of the Foreign Service Act of 1946 be amended 
so thiit tlie retirement annuity of a Foreign Serv- 
ice officer will be calculated on the basis of the 
actual salary drawn. The Committee does not 
believe that the retirement annuity of a Foreign 
Service officer should be calculated upon a maxi- 
mum figure of $13,500 per annum as at present. 

The purpose of our first audit session was to 
evaluate actions taken by the Department to im- 
plement the program for strengthening the For- 
eign Service which you approved last June. 
During the session just completed we have con- 
tinued this evaluation. We have also examined 
the program from the point of view of the prob- 
lems which have been encountered along the way. 
We wish to express appreciation for the clear and 
complete manner in which officers of the Depart- 
ment have presented their progress reports and 
their full and candid responses to our many 
questions. 

It is the opinion of your Committee that the 
months that lie immediately ahead are the most 
critical for the overall success of the program. It 
is important that a sustained maximum effort be 
continued. 

It is of special importance that the strongest 
support be enlisted in the Bureau of the Budget 
and in Congress in order that the proposed re- 
forms may be effected. In this connection, the 
Committee has examined the amendments to the 
Foi-eign Service Act of 1946 which the President 
and the Department have requested of the Con- 
gress. '\Vliile not all the amendments reflect ini- 
tial recommendations of the Public Committee we 
consider them to be logical and essential if the 
Department is to have the simplified and flexible 
personnel system envisioned in our report. The 
Committee wishes particularly to single out as 
indispensable the legislation permitting lateral 
entry into the Foreign Service officer corps with- 
out diminution of salaiy. This authority requires 
the amendment of Section 413 (b) of the Act of 
1946.= 



' See p. 622. 



624 



Department of State Bulletin 



The Committee noted with interest the release 
on December 29, 1954, of the report of Senator 
Alexander "Wiley, of Wisconsin, at that time 
Chairman of the Senate Committee on Foreign 
Kelations. Members of the Public Committee 
found that Senator Wiley's report, following his 
personal investigation of tlie situation in the For- 
eign Service, lends further support to our findings. 
Since the data for his report were gathered, sub- 
sequent information shows increasingly wide un- 
derstanding of the program within the Foreign 
Service and the Department. 

We have reconsidered the Scholarship Training 
Program at length. We feel that program is es- 
sential. The Department should have an equal 
opportunity with other government agencies and 
with private industry to obtain young Americans 
of the highest caliber for the Foreign Service. We 
urgently recommend that the Administration and 
Congress do everything possible to effectuate this 
program. You will recall that our recommenda- 
tion for creating a Scholarship Training Program 
pointed out that through such scholarships we can 
ensure that the Foreign Service is open to the 
ablest and most representative Americans, regard- 
less of private means. 

The Committee has been informed of skepticism 
regarding the Scholarsliip Training Program by 
some who feel that a high-powered recruitment 
drive would be adequate. Tliis attitude is ap- 
parently based on the assumption that at the close 
of their college and university careers there are 
still large numbers of uncommitted graduates of 
highest caliber ready to take a competitive exami- 
nation, and that this method will supply suitable 
members of the officer corps in adequate numbers. 
Tlie Committee strongly disagrees with this con- 
cejit. It offers as evidence that under current con- 
ditions too many of the ablest are by the time of 
their graduation committed to other careers. This 
is evidenced by the relatively small percentage 
wlio are found qualified as the result of present 
procedures. 

The Committee believes that a much sounder 
policy is to ensure a greater percentage of higlily 
' qualified applicants who, as is proposed by the 
Scholarship Training Program, will have been 
recruited and examined at an early stage in their 
educational careers and then prepared for diplo- 
macy. The Scholarship Training Progi-am is de- 
signed to improve the quality of Foreign Service 
officer candidates. 



The Committee desires again to emphasize that 
tliis program will not in any way exempt such 
scholarship holders or prospective Foreign Service 
officers from fulfillment of their obligations to 
military service. 

Foreign Service recruitment problems have be- 
come increasingly difficult because of the consid- 
erable expansion in recent years of the nmnber of 
scholarships offered by industry to outstanding 
high school and college students as well as by 
expanded Army, Navy and Air Force Reserve 
programs. Moreover, the Foreign Service officer 
corps is the principal government service outside 
the armed services where the terms of employment 
require the officer to go to any post in the world 
whenever sent and to be capable of assuming im- 
portant responsibilities at an early time. This is 
a further reason why training of highly qualified 
candidates should begin at an early age and re- 
cruitment of candidates should be stimulated by 
scholarships as it is in the armed services. Unless 
the Department of State can ofl'er encouragement 
in some form during the college years, the best 
young people will have been garnered by more 
farsighted competitors. 

The Committee foresees another very important 
benefit in the creation of a Scholarship Training 
Progi-am — an increase in the amount of instruc- 
tion given to young people on foreign affairs mat- 
ters. Many colleges and universities throughout 
the country do not offer enough or appropriate 
instruction to prepare young people adequately 
for careers in foreign relations. The Scholarship 
Training Program would stimulate colleges to 
provide such courses of instruction. 

In this connection the Committee has noted the 
reintroduction in the present Congi-ess of bills 
proposing the creation of a diplomatic academy — 
patterned after the service academies — for career 
Foreign Service officers. The Committee believes 
that the Scholarship Training Program, by en- 
couraging the best students from all the educa- 
tional institutions of the country to seek a Foreign 
Service career, will produce a corps representa- 
tive of the variety of American life both geo- 
graphically and otherwise. A single government 
school would tend to segregate future diplomatic 
officers from other Americans. Since diplomacy 
requires a broad knowledge of our nation's think- 
ing, such segi'egation would be clearly undesirable. 
Diplomats should not be regarded as a gi'oup 
apart. In this respect the problems of the officers 



April 11, J 955 



625 



of tlie Foreign Service officer corps are sharply 
dillereiit from tliose of the armed services. 

The Committee appreciates the efforts wliich 
have been made to expedite the FSO-0 entrance 
examination procedures and to make them avail- 
able in different parts of the country to candidates 
and otherwise to reduce the length of time be- 
tween examination and apiiointment. In the in- 
terest of economy and more effective administra- 
tion, it now wishes to add the recommendation 
that the orals no longer be deferred until the com- 
pletion of full Held security investigations. 

A Director of the Foreign Service Institute has 
been selected. It is now of prime importance that 
training plans be given higli priority so that the 
Institute may fulHll its statutory mission. In 
order that the Foreign Service Institute may 
function most efficiently, we urge that the Advi- 
sory Board be reconstituted and members prompt- 
1}' appointed and thereafter convened regularly. 

We recommend that services wliich can be ade- 
quately and economically performed elsewhere be 
put on a contract basis in other public or private 
institutions. The Institute should devote its facil- 
ities to training functions which it alone is 
equipped to provide, similar to the work of the 
War Colleges. Its energies must also be free to 
enable it to provide the necessary planning and 
supervision of the total career training program 
of tlie Department and the Foreign Service. We 
commend tiie progress that has been made toward 
establishment of in-sei-vice training programs 
abroad and point out that field training can be 
accelerated by tlie use of available local facilities 
on a contract basis. 

The reactivation of the Foreign Service In- 
stitute and the revitaiization of its program re- 
emphasize the need for respectable facilities and 
we urge that steps be taken to provide them. 

The Committee was impressed with the neces- 
sity of developing a realistic personnel and budget 
procedure in order to make full post complements 
available at all times at Foreign Service establish- 
ments. At the present time, such staffs are under- 
manned, sometimes to the extent of approximately 
25 percent, by reason of travel between assign- 
ments, home leave, emergency leave, etc. 

Tables of organization for overseas posts have 
been established on the assumption that 100 per- 
cent of the personnel will be continuously avail- 
able for duty. We recommend revision of budg- 
etary and management procedures so that the 



actual total strength on the job at any given time 
is in accordance with the table. 

The Committee discussed at some length the 
problem of the application of age limitations on 
the transfer to Foreign Service officer status of 
Departmental, Foreign Service Staff and Reserve 
officers. The Department is presently reviewing 
the regulations initially issued by the Board of 
Examiners which established a maximum age of 
5.3 and in-class age limits for Classes 6, 5 and 4. 
The Committee believes revisions in these regu- 
lations are desirable. There are disadvantages to 
assigning officers, particularly to the lower classes 
of the Foreign Service officer corps, who are some- 
what older than the present officers of those classes. 
However, the arbitrary application of restrictive 
age standards will tend to perpetuate a duality in 
Foreign Service personnel administration wliich 
the present program is designed to eliminate. 

The Committee is gratified to note that the accel- 
erated security progi'am is nearing completion. 
The Committee believes the early completion of 
this program is important for the improvement of 
morale. 

The Committee has been asked to consider cer- 
tain specific problems arising from the introduc- 
tion of the specialist concept into tlie various areas 
of personnel administration, such as promotion, 
assignment and career development. By the 
specialist concept the Committee means a reason- 
able emphasis on the development of an individual 
around his specialty, with executive and generalist 
responsibilities enlarging as the officer matures 
and gains experience. During the course of this 
meeting we have discussed this concept extensively 
with the officers concerned. As a result of those 
discussions we believe that with judicious and 
careful personnel administration this aspect of our 
program will be fully understood and accepted. 

The Committee was asked to consider whether 
there was need for review of the positions which 
were designated some months ago as "Foreign 
Service officer" positions. After careful consider- 
ation of the issues raised, it is our judgment that 
while latitude must be allowed for the readjust- 
ment of these designations according to experience, 
there is at present no need for any broad revision 
of the original designations completed by the 
Department after the submission of our report. 
Naturally, certain revisions in detail must be made 
from time to ( inu> witliout, however, impairing the 



626 



Department of State Bulletin 



basic principle of designating Foreign Service 
officer positions within the Department. 

If you desire further review at a later date the 
Committee will be at your service. 
Sincerely yours, 

John A. McCone 
Robert Murpht 
Donald Russell 
MoREHEAD Patterson 
Charles E. Saltzman 
John Hay Whitney 
Henry M. Wriston 

Chairman 



to depart from the United States under section 
215 (a) of the Inunigration and Nationality Act 
of 1952. In this connection the Department 
wishes to point out that the cases of such students 
have been in process of reexamination. As a con- 
sequence, restraining orders were rescinded on 
March 31 by the Immigration and Naturalization 
Service in the cases of 76 of these students, who 
are now free to depart, and it is anticipated that 
action will shortly be completed by the Immigra- 
tion and Naturalization Service on the few re- 
maining cases.^ 



Regulations on Return 
of Chinese Students 

Press release 182 dated April 2 

The program of emergency aid to Chinese stu- 
dents and scholars is expected to terminate on 
June 30, 1955. This, of course, does not affect the 
regular exchange program which is in effect be- 
tween the United States and the Republic of China. 
No grants for tuition or maintenance under this 
emergency program can be continued or renewed 
after June 30, no requests for thesis or dissertation 
costs received after this date can be honored, and 
no requests for emergency medical expenses can be 
given consideration. Chinese students and schol- 
ars who desire to return to the Far East and who 
are eligible for travel grants to cover minimiun 
expenses for transportation must be in actual 
travel status on or before June 30 in order to 
qualify for the grants. However, grantees wish- 
ing financial assistance for return travel prior to 
June 30 must present through their imiversity 
representative substantial evidence to the Depart- 
ment of their need of financial aid for this purpose 
and of their definite arrangements for departure. 
All applicants for travel grants must present 
written permission from the Immigration and 
Naturalization Service to leave the country. 

It has been brought to the attention of the 
Department of State that some Chinese students 
may refrain from applying to the Immigration 
and Naturalization Service for permission to de- 
part from the United States for fear of being 
refused. This fear apparently is based on the 
fact that a number of technically trained Chinese 
students have in the past been refused permission 



Soviet Misrepresentation of 
Western Position on Disarmament 

Statement hy James J. Wadsioorth ^ 

My attention has been called to the interview 
given by Mr. Gromyko, First Deputy Minister of 
Foreign Affairs of the Soviet Union, to a TASS 
correspondent in London. 

If the circumstances are as they appear to be, 
this interview constitutes a clear-cut violation of 
the rules under which the meetings of the subcom- 
mittee of the United Nations are being held in 
London. In accordance with a unanimous resolu- 
tion of the General Assembly,^ these meetings are 
being held in private in the hope that more prog- 
ress can be made than in previous meetings of the 
Disarmament Commission which were held in the 
full glare of publicity. 

All of the other delegations to the current meet- 
ings have observed tlie United Nations directive, 
but this new Soviet statement is only the latest 
and the most flagrant in a long series of systematic 
violations of the rules of the committee by the 
Soviet Union. 

The statements attributed to Mr. Gromyko ai-e 
not only aii infringement of the pledges which have 
hitherto bound all of us; they are also a libel on 
the proceedings of the committee and a gross mis- 



' For background see statement of May 29, 1954, Bulle- 
tin of June 21, 1954, p. 949. 

' Released to the press at London on Mar. 25. Ambas- 
sador Wadsworth is deputy U.S. representative at the 
London meetings of the Subcommittee of Five of the 
U.N. Disarmament Commission. 

= Bulletin of Nov. 1, 1954, p. 664, and Nov. 15, 1954, 
p. 750. 



April 11, 1955 



627 



interpretation of the positions taken by the 
United States, France, Great Britain, and Canada. 

The full record of tliose meetings will be made 
public as soon as possible after tlie meetings are 
closed. The public will then be able to judge 
the truth of the statements ascribed to Mr. 
Gromyko. 

I shall here limit myself to only a few obser- 
vations to illustrate the dishonest character of 
the TASS report. 

1. Mr. Gromyko claims tliat the Western powers 
are blocking the effort to eliminate weapons of 
mass destruction and to insure the use of atomic 
energy for peaceful purposes only. 

The facts : The United States has pioneered the 
effort to eliminate weapons of mass destruction. 
The United States has produced the first plan for 
the establishment of an international atomic pool 
for peaceful uses and it has allocated 100 kgs. of 
fissionable material for international use. The 
Soviet Union has not allotted one atom for this 
purpose. 

2. Mr. Gromyko says that the Soviet Union 
has made an offer at this meeting for the imme- 
diate destruction of atomic weapons and that the 
Western delegations have rejected it. 

The facts: At the beginning of the conference, 
the Soviet Union said that all states should destroy 
their nuclear armaments before there was any 
discussion of the other essential elements of a dis- 
armament program — in other words, before any 
corresponding reduction in other weapons and 
without halting the production of nuclear mate- 
rial, and with only the barest reference to the 
establishment of genuine international control and 
inspection. This scheme would merely have al- 
lowed the Soviet Union to disarm others and start 
even in tlie new, built-in nuclear anns i-ace, which 
its proposals would have insured. The Soviet 
representative stubbornly refuses to say whetlier 
he still stands by this preposterous proposal. 

3. Mr. Gromyko says that the Western powers 
do not really "contemplate a substantial reduction 
in armaments." 

The facts: In these meetings the Western pow- 
ers have given actual figures for great reductions 
in the armed forces of the major powers. The 
Soviet Union has merely brought forward its old 
proposal that all armed forces would be reduced 
by one-third. The reductions proposed by the 
Western powers would mean cuts in arms and 
armaments far greater than anything the U.S.S.R. 



has ever proposed. A one-third cut would merely 
perpetuate the present Soviet superiority in mass 
armies. The U.S.S.R. will not say what the 
figures would be for their forces when they began 
the one-third cut, and what they would be after- 
ward. This is a deceptively simple, but wholly 
fraudulent formula. It is merely a ''pig in a poke" 
proposition. 

4. Mr. Gromyko says that the Western dele- 
gations have given no figure for the time it would 
take to complete the proposed reductions. 

The facts: We have given concrete estimates 
which the Soviet Union has ignored. 

5. Mr. Gromyko says that the Western powers 
oppose a world disarmament conference. 

The facts: The very Western proposals which 
the U.S.S.R. claimed to have adopted as the basis 
for its present line ■* specifically call for action by 
a world disarmament conference when the Dis- 
armament Commission has clone its work first. 
The General Assembly resolution which set up the 
Commission ^ called for such a conference — to be 
held as soon as the Commission had made some 
progress. The Soviet Union voted against that 
resolution. 

6. Mr. Gromyko gives the impression that it is 
only the Soviet Union which has put forward pro- 
posals in this conference. 

The facts: The Western delegations jointly 
introduced a detailed program for can-ying out 
all parts of a disarmament program. These pro- 
posals describe how we can actually prohibit both 
the use and manufacture of nuclear weapons, re- 
duce armed forces and conventional weapons, and 
set up the kind of control machinery which would 
see to it that a disarmament program would be 
honored in fact and not in fancy. 

The overriding fact is that every single thing 
the Soviet Union says about the Western ])osition 
in this statement by one of its prominent diplomats 
is a downright misrepresentation. The ITnited 
States is nevertheless prepared to continue the dis- 
cussions while any purpose can be served by them, 
even though it seems clear the Soviet Union is 
using this conference for propaganda purposes. 



' A Soviet proposal Introduced during the Ninth General 
Assembly (D.N. doc. A/C.1/750) accepted the principles 
stated In a Joint Anprlo-French memorandum Introduced 
durinR the 10T>4 meetinRs of the subcommittee; for text 
of the momornnduin, see ihid.. Aupr. 2, 19.54, p. 182. 

• Ihid., Mar. 31, 1952, p. 507. 



628 



Department of State Bulletin 



U.S. Opposes Action by U.N. 
on Calendar Reform 

The Department of State annoimced on March 
21 {press release 166) that the U.S. Government 
had informed the United Nations on that day that 
it does not favor any action ty the United Nations 
to change the present calendar. The United States 
made its position hnown in a note transmitted by 
Henry Cabot Lodge, Jr., U.S. Representative to 
the United Nations, to the U.N. Secretary-Gen- 
eral, Dag H am/mar skj old, who hwl ashed all gov- 
ernments for their views on proposals to revise the 
existing calendar. The question of calendar re- 
form is under consideration by the U.N. EconomAo 
and Social Council. At its 18th session last 
July the Council adopted a resolution requesting 
the Secretary -General to obtain the views of mem- 
bers and nonmembers of the United Nations on 
"the desirability of calendar reform,.^'' The sub- 
ject is on the agenda of the Council's reswmed 19th 
session, which convenes on May 16. The text of 
the U.S. reply to the Secretary-General is as 
folloivs : 

The Eepresentative of the United States of 
America to the United Nations presents his com- 
pliments to the Secretary-General of the United 
Nations and has the honor to refer to the Secre- 
tary-General's note SOA 146/2/01, dated October 
7, 1954, concerning World Calendar Keform. 

The United States Government does not favor 
any action by the United Nations to revise the 
present calendar. This Government cannot in any 
way promote a change of this nature, which would 
intimately affect every inhabitant of this country, 
unless such a reform were favored by a substan- 
tial majority of the citizens of the United States 
acting through their representatives in the Con- 
gress of the United States. There is no evidence 
of such support in the United States for calendar 
reform. Large numbers of United States citizens 
oppose the plan for calendar reform that is now 
before the Economic and Social Council. Their 
opposition is based on religious grounds, since the 
'introduction of a "blank day" at the end of each 
year would disrupt the seven-day sabbatical cycle. 

^Moreover, this Goverimient holds that it would 
be inappropriate for the United Nations, which 
represents many different religious and social 
beliefs throughout the world, to sponsor any re- 
vision of the existing calendar that would conflict 



with the principles of important religious faiths. 
This Government, furthermore, recommends 
that no further study of the subject should be 
undertaken. Such a study would require the use 
of manpower and funds which could be more use- 
fully devoted to more vital and urgent tasks. In 
view of the current studies of the problem being 
made individually by govermnents in the course 
of preparing their views for the Secretary- 
General, as well as of the previous study made by 
the Secretary-General in 1947, it is felt that any 
additional study of the subject at this time would 
serve no useful purpose. 



U.S. Delegations to 
International Conferences 

International Union of Bioiogicai Sciences 

The Department of State announced on 
March 29 (press release 171) that the Twelfth 
General Assembly of the International Union of 
Biological Sciences is scheduled to be held at 
Eome, Italy, from Ai^ril 12 to 15, 1955. 

The U.S. delegation will be headed by Paul 
Alfred Weiss, head of the Laboratory of Devel- 
opmental Biology, Eockefeller Institute for Med- 
ical Research, New York, N. Y. Dr. Weiss is also 
chairman of the Division of Biology and Agricul- 
ture of the National Academy of Sciences — -Na- 
tional Research Council, chairman of the U.S. 
National Committee of the International Union 
of Biological Sciences, and chairman of the Policy 
Board of the International Union of Biological 
Sciences. 

The other members of the U.S. delegation are : 

Ralph Erskine Cleland, Indiana University, Bloomington, 
Ind. 

Hiram Bently Glass, Johns Hopkins University, Balti- 
more, Md. 

The International Union of Biological Sciences 
(luBs) was established in 1922 to pi-omote study 
in the various branches of biology, both pure and 
applied. It has special sections to deal with 
problems in the fields of biometry, botany, cell 
biologj', embryology, entomology, genetics, limnol- 
ogy, microbiology, and zoology. Its work is con- 
trolled by the General Assembly, which usually 
meets every 3 years. 

The Twelfth General Assembly is an extraor- 
dinary session called to consider reorganization 



April 11, J 955 



629 



plans and statutes for a revitalized luus. Steps 
toward an integrated and broadened program 
have been urged in recent years in consideration 
of the rapid growth of the biological sciences and 
their increasing importance to human welfare. 
As part of the meeting, and in order to provide 
a basis for establishing the future program of the 
luRS on the broadest and most critical evaluation 
of present trends that can be obtained, there will 
be a symposium on "Problems of International 
Concern in the Life Sciences." The seven topics 
selected for examination at this symposium are 
(1) standards, units, symbols, and terms; (2) re- 
search organization ami support; (3) teaching 
and training; (4) publication; (5) supplies and 
depositories; (6) international congi-esses and con- 
ferences; (7) international cooperative projects. 



Current Treaty Actions 

MULTILATERAL 

Agriculture 

International plant protection convention. Done at Rome 
Decoml)er 6, li)r)l. Entered into force April 3, 1952.' 
A(llicrc}tcc deposited: Laos, February 28, 1955. 

Postal Matters 

Universal jiostal convention, with final protocol, annex, 
regulations of execution, and provisions regarding air- 
mail and linal protocol thereto. Signed at Brussels 
July 11, 1952. Entered into force July 1, 1953. TIAS 
2»(K). 
liutifieation deposited: New Zealand, February 18, 1955. 

Slave Trade 

Protocol amending the slavery convention signed at 
Geneva September 2,5, 192(! (40 Stat. 2183), and annex. 
Done at New York December 7, 1953.' 
liatifieation deposited: Yugoslavia, March 21, 1955. 



El Salvador 

Agreement for a cooperative program for agricultural de- 
velopment, pursuant to the general agreement for tech- 
nical cooperation signed April 4, 19.">2 (TIAS 2527) 
and superseding a similar agreement signed July 16, 
19.54 (TIAS 30S9). Signed at San Salvador March 21, 
19."h5. Enters into force on date of written communi- 
cation from El Salvador giving notice of its ratification. 

Iran 

Agreement extending the military mission agreement of 
November 27, 1943 (57 Stat. 1202), as amended and ex- 
tended (TIAS 1941 and 2940). Effected by exchange 
of notes at Tehran March 15 and 19, 1955. Entered into 
force March 19, 1955. 

Italy 

Convention for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
income. Signed at Washington March 30, 1955. 
Enters into force upon exchange of instruments of 
ratification. 

Convention for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
estates and inheritances. Signed at Washington 
March 30, 1955. Enters into force upon exchange of 
instruments of ratification. 

Union of South Africa 

Arrangement relating to certificates of airworthiness for 

imp<3rted aircraft. Effected by exchange of notes at 

Pretoria October 29. 1954, and February 22, 1955. 

Entered into force February 22, 1955. 
Arrangement relating to the reciprocal recognition of 

certificates of airworthiness for imported aircraft. 

Effected bv exchange of notes at Pretoria October 12 

and December 1, 1931. 47 Stat. 2087. 

Tcrminntcd and replaced: February 22, 1955, by the 
agreement of October 29, 1954, and February 22, 1955. 



THE DEPARTMENT 



Designations 



Jacob D. Beam as Director, Office of Eastern European 
Affairs, effective March 15. 



BILATERAL 

Brazil 

Agreement bringing into effect the administrative part 
of the agreement for a cooperative program of rural 
education in Brazil signed June 27, 1952. Effected by 
exchange of notes at Itio de Janeiro June 14 and 30, 
1951. Entered into force June 30, 1954. 

Costa Rica 

Agreement jiroviding for investment guaranties as author- 
ized by section 413 (b) (4) of llic Mut\ial Security Act 
of 1954. Effected by exchange of notes at San Jos6 
February 2.3 and 25, 19.55. Entered into force February 
25, l!).->5. 



' Not In force for the United States. 
630 




Confirmations 

The Senate on April 1 confirmed John M. Allison to be 
U.S. Representative to the Eaeventh Session of the U.N. 
Economic Conunissiou for Asia and the Far East. 

The Senate on April 1 confirmed Joseph E. Jacobs to 
be Ambassador to Poland. 

The Senate on April 1 confirmed Joseph C. Satter- 
thwaite to be Ambassador to Burma. 

Department of State Bulletin 



April 11, 1955 I n 

American Principles. The Need for Greater Public Under- 
standing (Elsenhower) 609 

American Republics 

Meeting the People of Central America (Nixon) .... 587 
Pan American Day and Pan American Week, 1955 (Eisen- 
hower) 597 

Stepping Up U. S. Aid to Inter-American Highway (Eisen- 
hower, Nixon) 595 

U. S. Relations With the American Republics (Holland) . 598 
Chile. United States and Chile Sign Educational Ex- 
change Agreement 604 

China. Regulations on Return of Chinese Students . . . 627 

Congrress, The 

1955 Amendments to Foreign Service Act of 1946 . . . 622 

Review of Protocols on Termination of German Occupation 

and Accession of Germany to NATO (Dulles) . . . 605 
Costa Rica. Exlmbank Extends Credit to Costa Rlean 

Power Company 604 

Economic Affairs 

Exlmbank Extends Credit to Costa Rlcan Power Company . 604 
The Need for Greater Public Understanding (Eisenhower) . 609 
Stepping Up U. S. Aid to Inter- American Highway (Elsen- 
hower, Nixon) 595 

Edncational Exchange. United States and Chile Sign Edu- 
cational Exchange Agreement 604 

Foreign Service 

American Diplomacy at Work (Luce) 616 

Confirmations (Allison, Jacobs. Satterthwalte) .... 630 
1955 Amendments to Foreign Service Act of 1946 . . . 622 
Public Committee on Personnel Completes Second Review 

(text of report) 623 

France. French Ratification of European Agreements . . 605 

Germany 

Former Senator Upton Named to German Review Board . 611 

Review of Protocols on Termination of German Occupation 

and Accession of Germany to NATO (Dulles) . . . 605 
Health, Education, and Welfare. International Union of 

Biological Sciences 629 

Immig:ration and Naturalization. Regulations on Return of 

Chinese Students 627 

International Organizations and Meetingrs. International 

Union of Biological Sciences 629 

Italy 

American Diplomacy at Work (Luce) 616 

Signing of Tax Conventions 614 

Visit of Prime Minister Scelba of Italy (statements) . . 612 
Military ACiairs. Soviet Misrepresentation of Western Po- 
sition on Disarmament (Wadsworth) 627 

North Atlantic Treaty Orgranization. Review of Protocols 
on Termination of German Occupation and Accession 

of Germany to NATO (Dulles) . 605 

Presidential Dccnments. Pan American Day and Pan Amer- 
ican Week, 1955 597 

State, Department of 

Designation (Beam) 630 

Public Committee on Personnel Completes Second Review 

(text of report) 623 

Treaty Information 

I Current Actions 630 

French Ratification of European Agreements 605 

Review of Protocols on Termination of German Occupation 

and Accession of Germany to NATO (Dulles) . . . 605 

Signing of Tax Conventions With Italy 614 

United States and Chile Sign Educational Exchange 

Agreement 604 

U. S. S. R. Soviet Misrepresentation of Western Po- 
sition on Disarmament (Wadsworth) 627 



e X Vol. XXXII, No. 824 

United Nations 

Confirmation of U.S. Representative to Eleventh Session of 
U.N. Economic Commission for Asia and Far East 
(Allison) 630 

Soviet Misrepresentation of Western Position on Disarma- 
ment (Wadsworth) 627 

U. S. Opposes Action by U. N. on Calendar Reform 

(Lodge) 629 

Name Index 

Allison, John M 630 

Beam, Jacob D 630 

Dulles, Secretary 605, 614 

Eisenhower, President 595, 597, 609, 613 

Holland, Henry F 598 

Jacobs, Joseph E 630 

Lodge, Henry Cabot, Jr 629 

Luce, Clare Boothe 616 

Martino, Gaetano 615 

Nixon, Vice President 587, 596 

Satterthwalte, Joseph C 630 

Scelba, Mario 613 

Upton, Robert W 611 

Wadsworth, James J 627 

Wriston, Henry M 623 



Check List of Department of State 
Press Releases: March 28-April 3 

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

Press releases issued prior to March 28 which 
appear in this issue of the Bulletin are Nos. 156 
of March 21, 159 of March 22, and 162 of March 23. 
No. Date Subject 

168 3/28 Holland: "U.S. Relations With the 
American Republics." 
Upton appointment to Board of Review. 
Dulles : testimony on Paris agree- 
ments. 
Delegation to biology conference. 
Atwood : "The Inter-American Way." 
Signing of tax conventions with Italy. 
U.S.-Italian review of peaceful use of 

atom. 
Dulles-Martino remarks. 
Communique on Scelba visit. 
Shipley retirement. Knight appoint- 
ment. 
Educational exchange. 
Educational exchange agreement with 
Chile. 
Tax conventions with Japan. 
Inter-American Commission of Women. 
Re.gulations on return of Chinese 
students. 

*Xot printed. 

fHeUl for a later issue of the Bulletin. 



169 


3/28 


170 


3/29 


171 


3/29 


*172 


3/20 


173 


3/30 


174 


3/30 


175 


3/30 


176 


3/30 


*177 


3/31 


*178 


3/31 


179 


3/31 


tl80 


4/1 1 


tisi 


4/2 I 


182 


4/2 r 



April IT, 1955 



631 



U. S. 60VERHM 




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epartment 

of 

State 



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New Opportunities 

in tlie U.S. Foreign Service 



Publication 5748 



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An exceptional opportunity exists at this time for young 
American men and women to become officers in the Foreign 
Service of the United States. This opportunity is due primarily 
to the reorganization directed by the Secretary of State on the 
recommendation of his Public Committee on Personnel. 

A recent pamphlet entitled New Opportimities in the U.S. 
Foreign Service tells of the work and training of the Foreign 
Service officer, and life in the Service. Classes, pay, promotion, 
allowances, and other benefits are also discussed, and the proc- 
ess of becoming a Foreign Service officer is explained. A 
section on the examination is included in the pamphlet. 

Applicants for the U.S. Foreign Service must be at least 
20 and under 31 years of age, and have been an American 
citizen for at least 10 years. If married, the candidate must 
be married to an American citizen. 

Netv Opportunities in the U.S. Foreign Service is available 
from the Superintendent of Documents, U.S. Government 
Printing Office, Washington 25, D. C, for 15 cents a copy. 



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j/. XXX//, No. 825 
April 18, 1955 




•*TES O* 



THE FOREIGN SERVICE AS A CAREER • by Deputy 

Under Secretary Henderson 635 

EGYPTIAN-ISRAELI DISPUTE BEFORE THE 
SECURITY COUNCIL 

Statements by Ambassador Henry Cabot Lodge, Jr 659 

Texts of Resolutions 661, 662 

THE UNITED NATIONS REFUGEE PROGRAM • 

by Deputy Assistant Secretary Phillips , 652 

PROCEEDINGS AGAINST CZECHOSLOVAKIA IN 

1953 PLANE CASE 648 

INTERNATIONAL CONSIDERATIONS OF A MODERN 

AIR LOGISTICS SYSTEM • Article by J. Paul 
Barringer 645 



For index see inside back cover 



Boston Public Library 
'cperintcr'd'^Tit of Documents 

MAY 1 8 1955 




"^^Zof' 



*^..^^y*. bulletin 



Voi_ XXXII, No. 825 • PuBUCATiON 5824 
April 18. 1955 



For sale by the Superintendent of Documents 

U.S. Ciovcmment Printing Office 

WushlnRton 2.5, D.C. 

Price: 

.'.2 Issues, domestic $7.50, foreign $10.25 

Single copy, 20 cents 

The printing or this publication has 
been approved by the Director of the 
Diironu of the Budget (January 19, 19.15). 

Note: Contents of this publication arc not 
oopyrlKhted and Items contained herein nmy 
be reprlnte<l. Citation of the Department 
or State Bulletin as the source will be 
appreclntcil. 



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

Publications of the Department, as 
tcell as legislative nuiterial in the field 
of internatiortal relations, are listed 
currently. 



The Foreign Service as a Career 



6y Deputy Under Secretary Henderson ^ 



It seems hardly possible that within 3 months it 
will have been 40 years since I walked across a 
stage on the Northwestern campus in Evanston 
with other members of the class of 1915 to receive 
my Bachelor of Arts degree. 

Although Europe was already in the throes of 
the First World War, few of us who bade farewell 
to the university at the conclusion of that com- 
mencement week had any idea that we would spend 
the working years of our lives in a world so dif- 
ferent from that which we had hitherto known. 
Most of us were preparing to embark on careers 
in the professional or business world. Few, if 
any, were planning to enter government sei-vice. 
I am sure that no one was giving serious considera- 
tion to the Foreign Service as a career. 

You should not conclude that the students of 
our university in those days were not interested in 
public service. In fact, many of our class were 
intending to serve the public in such capacities as 
teachers, preachers, and physicians. In 1915, 
however, there were relatively few opportunities 
for satisfying public service in the Government, 
and we in Evanston knew little about such oppor- 
timities as did exist. 

Less than 2 years after our gi'aduation the 
United States entered the war and the life plans 
of many members of our class went awry. In- 
stead of pursuing the professional or business 
careers which they had chosen, many went into 
military service. Some did not return. Others 
.returned but not to the profession or business 
which they had left. 

As a result of our individual experience and of 
the experiences of the United States as a nation 
during the war years, the outlook of many under- 



' Address made before the Alumni Association of North- 
Tif'stem University at Washington, D. C, on Mar. 27. 



went a change. Some of us acquired new inter- 
ests — different sets of values. We found our- 
selves facing challenges of a character hitherto 
unknown to us. Our lives shifted to paths to 
which we had not given thovight that commence- 
ment day of 1915. 

Public Interest in Government 

I shall not undertake to list the changes which 
have taken place in American life during the in- 
tervening 40 years. They have, however, been 
profound. We have undergone a series of revolu- 
tions — or perhaps more accurately of evolutions — 
in our ways of thinking as well as of living. The 
relations between the individual American citizen, 
for instance, and his Government have become 
closer and more intimate than ever before, as have 
the relations between the United States and most 
other nations. He has become more aware of the 
eifects which the policies and actions of our Gov- 
ernment may have upon him. He now recognizes 
that international developments can change the 
course of his life and that of his whole community. 

More and more Americans are realizing the 
extent of their responsibilities for the future of 
our civilization and of mankind. They are be- 
ginning to understand that, if they are to dis- 
charge these responsibilities in a manner worthy 
of a great nation, they cannot afford to regard 
their lives and their work as matters exclusively 
private and personal in character, nor the policies 
and activities of their Government as purely an 
American affair. It is understandable that in such 
circumstances American youths are displaying 
much more active interest in their Government 
and in government service as a career. 

My own personal experiences may be illustrative 
of the way in which world developments have 



A.pr\\ 18, J 955 



635 



influenced the lives of my generation. It was my 
intention to study and practice law. I was pre- 
vented from entering the military service because 
of a childhood injury. In 1918, however, I left the 
law school of the University of Denver to go to 
France in the American Red Cross. Following 
the armistice I went to Berlin as a member of the 
Interallied Commission for the Repatriation of 
Prisoners of War. I was assigned to the task of 
inspecting camps of prisoners of war. 

In the spring of 1919 I visited Lithuania to 
assist in arranging for the repatriation of Russian 
prisoners of war. In Eastern Europe I saw at 
firsthand the horrible devastation of the First 
World War and the great epidemic diseases which 
swept that area. 

While in Europe I worked closely with mem- 
bers of our diplomatic and consular services and 
conceived a deep admiration for them and an 
interest in their work. Instead, therefore, of 
resuming my law studies, I prepared for and 
took the Foreign Service examination in the early 
part of 1922. 

Assignments In Eastern Europe 

My fir.st Foreign Service assignment in the 
summer of 1922 was as vice consul in Dublin dur- 
ing the Irish Civil War. In 1924 I was assigned 
to the Eastern European Division of the State 
Department and for 18 years thereafter devoted 
most of my activities to matters relating to East- 
ern Europe. Between assignments to Washing- 
ton I served in Riga, Latvia, and then in Moscow 
wlien diplomatic relations with Russia were re- 
sumed. Only in June of 1943 did I leave the 
Eastern European field to become American Min- 
ister to Iraq. 

I served in Baghdad until the spring of 1945, at 
which time I was ordered back to the Depart- 
ment and appointed Director for Near Eastern, 
African, and South Asian Affairs. Before as- 
suming my new duties, at the request of the De- 
partment I visited India and most of the capitals 
of the Middle East and South Asia in order to dis- 
cuss with our diplomatic missions and consular 
officer the problems peculiar to each country or 
area. 

In the summer of 1945 I again went to the 
field, this time in the dual capacity of Ambassa- 
dor to India and Minister to Nepal. The 3 years 

636 



that I served in these two countries were stimu- 
lating ones. They gave me new insights into the 
present problems and the future potentialities of 
Asia. 

In the summer of 1951 I was appointed to Iran, 
where I spent three and one-half exciting, wor- 
ried, and at the same time happy years. I found 
the Persians a charming and friendly people, 
determined to maintain their political independ- 
ence and their territorial integrity and to develop 
their countr}' economically, culturally, and spir- 
itually. At the end of last year I was recalled 
to Washington to take over my present duties, 
which include certain responsibilities for the ad- 
ministration and the improvement of the State 
Department and the Foreign Service. 

A Challenging Career 

You probably have gathered from what I have 
told you of my own experiences that I find the 
Foreign Service an absorbing, stimulating — often 
challenging — career. You are (fuite right. I will 
grant that the carrying out of my duties has some- 
times involved personal inconvenience, occasion- 
ally hardship. In the Service, that is discounted 
as an occupational hazard. There have also been 
moments of excitement — with one occupying a 
ringside seat while history was being made. Now 
and then a Foreign Service officer even finds him- 
self in the ring making it. No one, however, 
should consider the Foreign Service as a career 
unless he is prepared to regard the satisfaction 
which comes from the knowledge that he is serv- 
ing his country as the highest reward which can 
await him. 

In talking, as I have been, about my personal 
experiences and telling you about my own reac- 
tions to the work of the Foreign Service, I have 
been leading up to the subject which is most on 
my mind at the present time and which I shall 
discuss with you this evening — that is our Foreign 
Service, its significance to our country, some of 
its problems, and what might be done to strengthen 
it and make it more effective. 

I proceed from the premise that the manner in 
which the Foreign Service carries out its assign- 
ments will have an effect on the life of every Amer- 
ican. It seems to me obvious, therefore, that we 
should have the strongest, most effective Foreign 
Service that we are capable of producing. We can- 

Department of S/ofe Bulletin 



not afford to allow the Foreign Service to become 
stagnant. It must keep abreast, if not ahead, of 
the fast-moving and stirring developments of our 
time. 

In my own opinion, the Foreign Service as it is 
presently constituted and equipped is performing 
in a creditable manner. Nevertheless it has cer- 
tain shortcomings which it would be in the national 
interest to remedy. One of the basic reasons for 
these shortcomings has been the chronic lack of 
funds. This lack is partly responsible for our 
failure to give the kind of training to our per- 
sonnel which they should have if they are to carry 
out with maximum efficiency the duties assigned 
to them. The Department of State has not had 
the funds to maintain a Foreign Service Officer 
Corps sufficiently large to permit an appreciable 
number of officers being spared for refresher 
courses and for specialized training. As a result 
we frequently have not been able to man from the 
corps certain specialized positions and have been 
compelled from time to time to bring in specialists 
from the outside. We have also never had suf- 
ficient funds to provide proper training facilities, 
to furnish the necessary classrooms at home and 
abroad. 

The shortage of funds has prevented us from 
paying the kind of salaries and particularly allow- 
ances which many of our personnel need in carry- 
ing out their duties. 

Merging Diplomatic and Consular Services 

In 1924 Congress passed a Foreign Service Act 
which provided for the merging of the diplomatic 
and consular services into a single Foreign Serv- 
ice. In pursuance of that legislation on July 1, 
1924, members of the diplomatic and consular 
service became Foreign Service officers. Most of 
the members of the old diplomatic service pos- 
sessed private means. In fact, prior to 1924 it 
was considered unwise for a young man without 
a private income to enter the diplomatic service. 
The act of 1924 provided for considerable in- 
creases in the salaries of officers in diplomatic 
posts. One of the purposes of that act was to 
render it possible for persons without private 
means to serve. 

Since 1924 most young men and women entering 
the Service have had no, or limited, private means. 
They must, therefore, live and work within the 

April J 8, 1955 



limitations of their salaries and allowances. Un- 
fortunately, salaries and allowances are sometimes 
insufficient to take care of the urgent official and 
personal needs of our Foreign Service personnel. 
These needs are several. 

Financial Needs 

Foreign Service officers should be able without 
experiencing financial embarrassment to mingle 
with all levels of society in the countries in which 
they are stationed. I do not mean to imply that 
they should live in an ostentatious or extravagant 
way. Nevertheless, they should be able, without 
uneasiness or apology, to invite their foreign 
friends to their homes or otherwise to cultivate 
cordial relations with those whose good will might 
be useful to the United States. They should have 
the means to travel in the country where they are 
stationed; they and members of their families 
should be able to take leaves regularly under bene- 
ficial conditions; they should be able to visit the 
United States periodically; and they should be 
able to provide an American-type education for 
their children and decent medical treatment for 
their families. 

Our Foreign Service personnel cannot be at 
their best if they are dogged by financial worries. 
The satisfaction which comes from a consciousness 
of public service should not be dimmed by con- 
cern as to how one may provide for the needs of 
his family. 

Much has been done during the last 30 years to 
improve the living and working conditions of the 
members of the Foreign Service; much still re- 
mains, however, to be done. Many of our person- 
nel are still beset by financial worries which can 
be overcome only by increases in their allowances 
and salaries. 

I have sometimes heard Congress criticized for 
not taking a more liberal attitude when appro- 
priating funds for the Foreign Service. It is a 
time-honored American custom to blame Congress 
for governmental deficiencies, just as it is a na- 
tional habit to blame the State Department and the 
Foreign Service when things go wrong in any part 
of the world. 

It would be most unfair to blame Congress for 
such shortcomings as exist at the present time in 
the Foreign Service. We in the Department and 
Foreign Service have found that Members of Con- 

637 



gress ill geiienil sire deeply interested in tlie For- 
eign Service and are anxious to make it more 
effective. I know for a fact that Members of Con- 
gress and their aides have frequently vForked in 
the late hours of the night in the preparation of 
legislation calculated to strengthen the State De- 
partment and the Foreign Service. Unfortu- 
nately, for this kind of work they receive com- 
paratively little attention in their home districts. 

The main reason for difficulties in obtaining 
sufficient funds for the Foreign Service has been 
that the American people in general still fail to 
understand that the Foreign Service is their Serv- 
ice; that it is fighting battles on their behalf both 
at home and abroad ; and that it is in their individ- 
ual and collective interest to make sure that the 
Foreign Service is properly staffed and equipped. 
Most American citizens now realize that in this 
period of world history it is necessary that our 
Armed Forces be maintained at a high level of 
efficiency. They are, however, not as yet fully 
conscious of the fact that it is no less important 
that their State Department and Foreign Service 
be strengthened in a way which will enable them to 
meet the tasks which our country's position in 
world affairs now imposes upon them. 

Lack of funds is not the only problem which 
our Foreign Service must overcome. Some of our 
difficulties stem from the new times and from new 
conditions attendant upon these times. As our 
relations with other countries of the world have 
become closer and more complex, the duties and 
responsibilities of the Foreign Service have tre- 
mendously expanded. There has been no new cor- 
responding expansion of the Foreign Service 
Officer Corps and, in spite of the various reorgan- 
izations of the Department of State and of the 
Foreign Service which have been put into effect 
during recent years, the Department and the For- 
eign Service still do not have the degree of flex- 
ibility necessary to meet the demands placed upon 
them. 

Wriston Committee 

Tlie Secretary of State last year, realizing that 
the Department of State and the Foreign Service 
were in need of strengthening, appointed a Public 
Committee on Personnel composed of American 
citizens prominent in various walks of life to study 

638 



the Department of State and the Foreign Service 
and to make to him recommendations for build- 
ing up their efficiency and effectiveness. This 
Committee was headed by Dr. Henry Wriston, 
president of Brown University. In the spring of 
last year it made a most interesting report of its 
findings.'' 

The Secretary, after reviewing the report care- 
fully, approved its recommendations and ap- 
pointed one of the members of the Committee, 
Charles E. Saltzman, as Under Secretary of State 
for Administration for a period of 6 months in 
order to begin to carry out these recommendations. 

It is one of my duties as successor to Mr. Saltz- 
man to see that the program which the Secretary's 
Committee on Personnel recommended is com- 
pleted. 

Principal Recommendations 

The Committee's recommendations fall into 
four principal sections : One of the most important 
calls for the integration — where their functions 
converge — of Civil Service officers employed by 
the Department of State, Eeserve officers. Staff 
officers of the Foreign Service, and Foreign Serv- 
ice officers into a single Foreign Service Officer 
Corps. The Committee was of the opinion that 
the following benefits would be among those de- 
rived from such integration : 

a. In the future Foreign Service officers from 
the field will staff positions of a foreign affairs 
character in the Department. Former Civil Serv- 
ice officers in the Department will be sent to posts 
in the field, and Foreign Service officers will also 
fill middle and higher level positions now occupied 
by Foreign Service Staff and Reserve officers and 
vice versa. This will provide greater flexibility. 

b. The resulting rotation Avill eventually mean 
that practically all officers in the field will have 
had experience in the Department of State. 

c. The administration of the Foreign Service 
and of the Department will be simpler if most of 
the officers engaged in foreign affairs activities 
are working under the same set of regulations. 



' Toward a Stronger Foreign Serince: Report of the Sec- 
retary of State's Puhlie Committee on Personnel, June 
IO5I1, Department of State publication 5458, for .sale by 
the Superintendent of Documents, U. S. Government 
Printing Office, Washington 25, D. C, 30 cents. 

Department of State Bulletin 



Another section of the Committee's report called 
for more emphasis on the recruitment of able 
young men and women at the lower grades of 
the Service. The Secretary's Committee on Per- 
sonnel believed that if the Foreign Service was 
to be of maximum efficiency, most of its members, 
as hitherto, should continue to come in at the 
bottom grade of the Service with the idea of de- 
voting tlieir lives to the Foreign Service. The 
Committee made certain suggestions for making it 
easier for American youth to take the examina- 
tions and, after passing them, to enter the Service. 
The Committee thought that energetic steps 
should be taken to draw the attention of the most 
promising young men and women in the country 
to the opportunities for distinguished public serv- 
ice offered by the Foreign Service. 

A third section of this report was devoted to 
the need for expanding and improving the train- 
ing of Foreign Service personnel. Suggestions in 
this section included the strengthening of the 
Foreign Service Institute, the extending of its 
facilities, and the broadening of its training pro- 
grams. 

Still another section stressed the necessity of 
improving the conditions under which Foreign 
Service personnel serve abroad. Suggestions 
were made for increases in existing allowances 
and for the authorization of additional allow- 
ances which would put Foreign Service officers 
in a better position to obtain for their children 
an American type of education and proper medi- 
cal care for their dependents. 

'Progress in Integration Program 

I am happy to report that considerable prog- 
ress has been made during the last 9 months in 
carrying out these recommendations of the Com- 
mittee. The Bureau of the Budget and Congress 
have been most sympathetic. 

Already almost 500 State Department, Foreign 
Service Staff, and Reserve officers have been com- 
missioned as Foreign Service officers. We hope 
I that by the fall of this year the program of inte- 
gration will have been practically completed. 

Wliile the integration program will benefit the 
Department and the Foreign Service Officer 
Corps in several ways, it will in itself do little 
to reduce our manpower shortage of Foreign 
Service officers. The number of Foreign Service 
officers will be increased, it is true — but an over- 

April 18, 1955 



whelming percentage of the lateral entrants, when 
brought in, will be bringing their jobs in with 
them. That is to say, lateral entrants into the 
Foreign Service Officer Corps under the integra- 
tion program will not expand the net manpower 
of the Department. 

Recruitment 

For lasting relief of the manpower shortage, we 
are subjecting the recruiting program to a vigor- 
ous overhaul. The regular recruiting program 
has been stepped up. We are establishing closer 
ties with the colleges and universities of the 
Nation, which are the best sources of raw ma- 
terial. So, on March 2, representatives of the 
Department of State appeared on the Northwest- 
ern campus to discuss the Foreign Service as a 
career with faculty and student body. I person- 
ally believe it is healthy for Northwestern and 
other Midwestern schools to be liberally repre- 
sented in the Service. 

The Department is also hoping to launch a 
scholarship program in accordance with sugges- 
tions advanced by the Wriston Committee. Under 
this plan the most promising students would qual- 
ify for a government grant. On acceptance, a 
student would pursue an appropriate course of 
study. He would also commit himself to a mini- 
mum term of service after being graduated, pro- 
vided, of course, he is admitted to the Foreign 
Service Officer Corps. 

The target for new officers to start at the bottom 
of the Service is approximately 250 a year. To 
young men of high caliber, we will be in a position 
to offer a career that will yield continuing interest 
and the satisfaction that normally accompanies 
worthwhile public service. 

We are also trying to improve our in-service 
training. To this end a thorough reorganization 
of the Foreign Service Institute is in process. 
And it is our objective, before we are through, 
that the Institute will be equipped to provide these 
fine young officers we are recruiting, as well as 
officers at all levels in the Service, the best in train- 
ing. I think I need place no emphasis on what 
tliis will mean to the Foreign Service of the future. 

For at least part of this projected reorganiza- 
tion we are still awaiting congressional approval. 
A bill which would give us authority to move in 
this direction has just been passed by the House 

639 



of Representatives and will go before the Senate 
soon. This is a most helpful bill, and we hope it 
will become law within a few days.^ 

Morale 

So far I have said nothing about the vital factor 
of Foreign Service morale. And if I deal briefly 
with it here, the length of the treatment should 
not be construed as a measure of its importance. 
Rightly or wrongly, many Foreign Service officers 
have the feeling that the public lacks confidence 
in them. They have been deeply hurt by the fact 
that, although their efforts in all parts of the world 
are entirely devoted to the advance of American 
interests, few voices at home speak out in their 
behalf. 

As for the factor of public support for the 
Foreign Service, I think it is steadily increasing 
and it is up to us in the Department of State to do 
all that we can to see that this support is brought 
to the proper level. We have a first-class group 
of officers. Our Foreign Service, clerical and of- 
ficer staff alike, compares favorably with the 
Foreign Service of any other nation. We are 
going to strengthen it. And as the Department 
brings home to the American people that we have 
a Foreign Service worthy of this country in every 
respect, I am convinced that they will respond by 
offering the kind of support that it merits. 

We must actively promote increased public in- 
terest in the Foreign Service — we must acquaint 
the American people with the character and results 
of its work. I am sure that, once the public 
comes to a full realization that their representa- 
tives abroad are a highly competent, thoroughly 
trained, and completely dedicated group, our 
morale problem and many of our other problems 
will disappear. 



Resignation of Sir Winston Churchill 
and Naming of Sir Anthony Eden 

Following are statements released by the Presi- 
dent and Secretary Dulles on the retirement of Sir 
Winston Churchill as Prime Minister of Great 
Britain on April 6 and the appointment of Sir 
Anthony Eden as his successor on April 6. 

' For details on legislation amending the Foreign Service 
Act of 1940, see Bulletin of Apr. 11, 1954, p. 622. 

640 



Statement by the President 

White House press release dated April 5 

We have just had official word that my old and 
very dear friend, Sir Winston Churchill, has re- 
tired from his position as head of Her Majesty's 
Government in the United Kingdom. 

Naturally, an event such as this recalls to my 
mind many stirring incidents both of war and 
peace. I have greatly respected and valued my 
associations with a man so great as Winston 
Churchill. 

And now, if I dare, I should like to address a 
word directly to Sir Winston. All of us in the 
free world can respect your decision. Sir Winston, 
to retire from official office, to live now a somewhat 
more serene life than has been possible in a posi- 
tion of such great responsibility as yours. But we 
shall never accept the thought that we are to be 
denied your counsel, your advice. Out of your 
great experience, your great wisdom, and your 
great courage, the free world yet has much to gain, 
and we know that you will never be backward in 
bringing those qualities forward when we appeal 
to you for help, as all of us are bound to do. 

Good luck to you in retirement. To you an(S 
your family all the happiness that it is possible 
for you to have. 

Now for the rest of us, I hope that I have spoken 
the words you would like to speak, no matter how 
haltingly or how roughly. Thank you. 



Statement by Secretary Dulles 

Press release 186 dated April 5 

Sir Winston Churchill is one of the great men 
of history. Those of us who know him personally 
have a great privilege. We can rejoice that, even, 
though he is no longer Prime Minister, his wisdom 
and vigorous enunciation of it remain at the serv- 
ice of the free world. Sir Winston has always 
been a friend to the United States, and the policy 
of close friendship between our two countries is 
so deeply ingrained on both sides that we can be 
confident of the future. 



Statement by the President 

White House press release dated April 6 

Sir Anthony Eden, my good and long-time 
friend, has been named the new Prime Minister of 
Her Majesty's Government in the United King- 

Departmenf of Sfafe Bulletin 



dom. He is a gi-eat successor to a gi-eat Prime 
Minister. 

In war and in peace, Sir Anthony has been an 
outstanding spokesman of the free world. I know 
that he will continue unceasingly to serve the 
cause of world peace and freedom. 

I join with my fellow Americans in felicitating 
him, a statesman of world stature, as he under- 
takes his new responsibilities. 

Statement by Secretary Dulles 

Press release 192 dated April 6 

I am happy to extend greetings to Sir Anthony 
Eden as the Prime Minister. He is a great believer 
in close Anglo-American relations. As Secretary 
of State for Foreign Affairs in the present and in 
preceding governments, he has used his great tal- 
snts in defense of freedom. He was a large con- 
'tributor to the concept of Western European 
Union which is now in process of realization. 
Dur Nation can feel a sense of satisfaction that, 
iven though Sir Winston Churchill has decided 
o lay down official office, his task will be carried 
)n by a friend whom we know and trust. 



Possibilities for Meeting of 
3ig Four Foreign Ministers 

^rp^s release 188 dated April 5 

Ai his news conference on April 6, Secretary 
Dulles was asked a series of questions relating to 
I possible Foreign Ministers^ meeting with the 
U. S. S. R., when such a tneeting might be held, 
ind the preparatory work for such a conference. 
He was ashed initially if such a vneeting might be 
leld in conjunction with the U.N. Commemorative 
Meeting scheduled for June at San Francisco, 
n reply Secretary Dulles said: 

I would think it unlikely. The process of get- 
ing ready for a foi'mal meeting is rather com- 
)licated, and I would be surprised if that could be 
ompleted by that time. 

Asked what he thought would be the earliest 
late such a meeting might be held, the Secretary 
eplied: 

The present situation is about like this : We ex- 
lect that the ratifications necessary to bring into 
orce the Western European Union and the ad- 

\pn7 18, 1955 



mission of the Federal Republic of Germany to 
the Nato and restoration of its sovereignty — all 
of that can be completed by the early part of May 
or perhaps the latter part of April. Then there 
will be a meeting of the Nato Ministerial Council. 
That is the meeting to which I referred in my 
statement on the sixth anniversary of the forma- 
tion of Nato. 

That meeting will bring together the Foreign 
Ministers of the countries which might participate 
in or be interested in a meeting with the Soviet 
Union. It is possible that there could be a pre- 
liminary exchange of views by some of the coun- 
tries most directly concerned shortly preceding 
this Nato Ministerial Council meeting so as to pre- 
pare the ground for the exchange of views between 
the Foreign Ministers at that time as to whether 
and how to proceed and what the subjects might 
be. 

The matter of determining what might be a use- 
ful agenda and what governments should be con- 
sulted in relation to it raises quite a few problems, 
and then there would have to be an exchange of 
views with the Soviet Union to see whether any 
agreed agenda could be arrived at, and an agreed 
time could be arranged, and an agreed place could 
be arrived at. Those things, in the past at least, 
have used up quite a bit of time; so that is the 
reason why I have some doubts as to whether we 
would be ready for a formal meeting as early as 
the San Francisco occasion to which you refer. 

Ashed whether he was drawing a distinction be- 
tween a formal meeting of the Foreign Ministers 
at San Francisco and possibly an informal one, 
and whether they could discuss infor?nally the 
same subjects they would discuss formally, Secre- 
tary Dulles replied: 

There is a real distinction between what could 
be discussed formally and informally. I do not 
think subjects could be discussed formally at San 
Francisco. Of course it depends on what the topics 
are. If we are going to discuss, for example, the 
reunification of Germany, that is an extremely 
technical subject which could not be discussed 
without the presence of experts nor could it be 
discussed formally without the presence of repre- 
sentatives of the Federal Republic of Germany. 
And of course the Federal Republic is not a mem- 
ber of the United Nations and will not have any 
official representation at San Francisco. 

641 



Asked whether a Big Four meeting would ha/ve 
to become a Big Five if the question of Germany 
were to he discussed, the Secretary replied: 

Well, I would certainly feel that after sover- 
eignty has been restored to the Federal Republic 
of Germany tlie three Western powers would not 
want to deal witli the future of Germany witliout 
a very active participation by the Federal Repub- 
lic itself. It is quite true that under the terms of 
the so-called Bonn Convention, wliich restores sov- 
ereignty to Germany, the three Western powei-s 
did reserve their riglits with respect to the unifica- 
tion of Germany. But this was done in accord 
with the Federal Republic itself because it did not 
want to be in a situation where tlie Soviet Union 
possessed rights in tliat respect wliich it might ex- 
ercise eitlier directly or through the East German 
regime, and where the Federal Republic would be 
alone in tlie matter. The purpose of that wasn't 
in any way to deprive tlie Federal Republic of 
Gemiany of a voice in a matter which is of deep 
interest to it. Therefore, we would not want to 
try to deal with the problem of unification of Ger- 
many without the very close participation in that 
discussion of the Federal Republic. 

Asked about the testimony of a State Depart- 
ment official before the House Appropriatiowi 
Committee in February that "there is little imme- 
diate likelihood of a significant reduction of inter- 
national tension or settlement of major political 
problems through negotiations with the U. S. 
S. JR.," Secretary Dulles replied: 

I would say tliat that kind of judgment is to a 
very considerable extent a matter of individual 
opinion. I myself am not optimistic about the 
chances of a significant political settlement. But 
I believe it is something that we have always got 
to keep trying for, and that you cannot let your- 
self become discouraged or despondent about the 
prospects. 

Sometimes the unexpected is what happens. It 
seems to me that in dealing with the Soviet Union 
it is oftentimes the unexpected which is more apt 
to happen than the thing that one anticipates. 
There could be a settlement of the Austrian state 
treaty as a result of developments which occurred, 
I think, since the testimony which you report. 
Tlierefore, one can't do more than give an opinion 
which is based on events of the moment. 

I would certainly say tliat, when the consumma- 

642 



tion of the Western European Union comes about, 
there is a better chance of solving some of these 
problems than there was before. Then the only 
purpose of a meeting with the Russians, as far as 
they were concerned, was their trying to maneuver 
against the Western European Union. Once that 
becomes a closed matter, then I think the possibili- 
ties are increased. 



Purge in Red China 

Press release 189 dated April 5 

At his news conference on April 5, Secretary 
Dulles xoas asked for an assessment of the purge in 
Red China. He made the following reply: 

The purge that has occurred there is character- 
istic of what takes place constantly within these 
dictatorship-type Communist governments. By 
coincidence I had prepared a little memorandum 
of my own thinking on this China subject last 
Sunday before I heard of this purge, and in that 
memorandum I predicted that on the basis of what 
had happened in Russia there would probably be 
similar purges that would occur within Commu- 
nist China. 

In the Soviet Union you had a constant succes- 
sion of these things. You had the struggle be- 
tween Stalin and Trotsky which was climaxed 
about 1929 or thereabouts. Then you had the 
clash between Stalin and Bukharin and others 
which led to the big purges of 1937. Then you 
had the Beria purge. Then you had tlie Malenkov 
purge. These things are characteristic of a Com- 
munist type of despotism, where there is no peace- 
ful, orderly way of bringing about changes in gov- 
ernment and where they can only occur through 
coercion and, in most cases, violence and legal or 
illegal executions. That is one of the basic weak- 
nesses in that form of society. 

I am not surprised it happened in CommunistI \ 
China because that type of thing is chronic in thati 
form of society. 

Asked whether, in his view, these purges re- ^ 
fleeted a possible change in Bed Chinese foreign 
policy, Secretary Dulles replied: 

I would be surprised if this particular event f/- 
were related to foreign policy. I would surmise 
that it has more of a relation to internal rathei ^ 
than external policies. 



Department of State Bulletin 



Prospects of War or Peace 
in the Formosa Area 

Press release 190 dated April 5 

At his news conference on April 5, Secretanj 
Dulles was asked about the prospects of war or 
peace in the Formosa area. Secretary Dulles 
made the following reply: 

To answer that question would require me to 
read the minds of people to whom I have no ac- 
cess; that is, the Communist leaders in Peiping. 
We have made perfectly clear our desire that there 
shall be no war, our desire that there shall be a 
cease-fire. So, if there is any war, it will be en- 
tirely due to the provocation and initiative of those 
who unfortunately may not be subject to the pacific 
purpose which they proclaim. If, in fact, the Chi- 
nese Communists are faithful to what they talk 
about— peace— then there will be no fighting in 
ithe area. 

Asked whether the release of the Chinese stu- 
dents on April 2 ' was intended as an indication 
<of our preference for peace rather than war, the 
'Secretary replied: 

^ In a broad sense you can say that it was indica- 
tive of our desire to keep our relations with the 
Chinese Communists on, you might call, a civilized, 
ipeaceful basis. We did not desire to be in a posi- 
tion of holding any persons as hostages, and in 
fact they have never been so held. We have pushed 
ahead to complete the process of clearances, in- 
cluding the necessary legal steps which have to be 
;aken, I believe, by the Department of Justice, 
^s soon as those were completed, we announced 
;hese people were free to go. 

In the same way, we recently turned back at 
Song Kong seven Communist fishermen tliat had 
)een picked up in a storm and rescued. In some 
quarters the suggestion had been made that we 
Ihould hold them as a barter. We do not believe 
b bartering human beings, and we hope that our 
londuct and example in that regard might pos- 
ibly have some influence in Communist China. 

Asked whether this was done at the suggestion 
r request of Mr. Hammarskjold, Mr. Dulles 
^■plied: 

No. Mr. Hammarskjold is dealing only with 
* Bulletin of Apr. 11, 1955, p. 627. 
ipri/ 78, 1955 



the prisoners of war who were in the United Na- 
tions Command, and he has not concerned himself 
particularly about the civilian situation. As far as 
I am aware, Mr. Hammarskjold was not informed 
about the steps we were taking to release these 
civilians. He was informed of the steps which we 
took to release the seven fishermen that I referred 
to. That took place some weeks ago. 

Asked whether any new steps had leen taken or 
if any were in prospect to find a common allied 
position toith regard to Formosa either through 
diplomatic channels or through the United Na- 
tions, Secretary Dulles replied: 

We are in close contact with the nations having 
an interest in that part of the world, and we have 
frequent discussions with their representatives. 
There is a very active exchange of advice steadily 
going on with reference to this situation. We all 
realize it is a highly dangerous situation, and we 
want to eliminate to the maximum degree possible 
the dangerous elements there. Wliether we shall 
succeed or not, as I said before, depends very 
largely upon whether the Chinese Communists are 
willing to have an abandonment of force. 

Asked to comment on the fact that the Cana- 
dians have stated publicly that they would not 
back us if war comes out of Quemoy and Matsu 
and^ whether that represented a divided allied 
position, the Secretary replied: 

No. On the contrary, as a result of my trip up 
there there is a much closer understanding between 
our two Governments than had existed before. 
We have never expected that if there were a war 
in the Formosa area the Canadian Government 
would be a participant in that war. They have 
no treaty arrangements of any kind which relate 
to that part of the world, and that kind of sup- 
port has never been anticipated. I think there is 
now an understanding of the problem and that 
our relations in that respect are much better than 
they have been before. 

Asked whether he believed that the overall 
world position of the United States would neces- 
sarily be weakened or might in fact be strength- 
ened if the United States were to base its commit- 
ments in the Formosa area exclusively upon For- 
mosa and the Pescadores, the Secretary replied: 

I have said many times, and I am glad to have 
a chance to say again, something which I can re- 

643 



peat bj' heart : The only commitment of the United 
States in that area is based exclusively on Formosa 
and the Pescadores. 

We have a treaty which confines the treaty area 
to Fonnosa and the Pescadores. We have a law 
which says that the armed forces of the United 
States can be used in that part of the area for the 
defense of Formosa and the Pescadores. We 
have no commitment of any kind, sort, or descrip- 
tion, expressed or implied, which binds the United 
States to anything except the defense of Formosa 
and the Pescadores. 

Now you get to the question — if there seems to 
be an attack against Formosa and the Pescadores, 
how do you defend against that attack? That is 
tlie only question. Some people say that we should 
annoimce in advance precisely how we are going 
to defend and carry out our commitment on For- 
mosa and the Pescadores and to say we will carry 
out that commitment by doing this or by not do- 
ing that. Once you extend your commitment to 
defend Formosa to a commitment as to particular 
means which you may use for defense, then you 
are getting into very difficult ground. We have a 
commitment, certainly, to defend the United States 
of America. But nobody yet has required us to 
state publicly precisely what the means would be 
of defense in the event of certain types of attack 
which cannot be predicted. I repeat — again and 
again and again — that our only commitment is to 
defend Formosa and the Pescadores and if there 
were no challenge to Formosa and the Pescadores, 
then there wouldn't be any question as far as we 
are concerned of fighting in that area. 

Asked if he were saying in that connection that 
we wovld not aid the Chinese Nationalists to de- 
fend Quemoy and Matsu for the sake of Chinese 
Nationalist morale, Mr. Dulles replied: 

Unless that were vital for the defense of For- 
mosa and the Pescadores. It all comes back to 
that. 

Plans for Antarctic Expedition 

Wlilto noimo press release dated March liS 

The United States will send an expedition to the 
Antarctic next November to begin work on three 
observation sites needed in connection with the 
participation of this country in the program for 
the International Geophysical Year, 1957-58. 

644 



Rear Adm. Richard E. Byrd, USN (retired), 
will be designated by the Department of Defense 
as Officer-in-Charge, the same title he held on the 
last Navy Antarctic expedition in 1946^7. 

Similarly Capt. George Dufek, USN, has been 
designated by the Department as acting Task 
Force Commander. 

Plans for the International Geophysical Year 
call for the establishment of more than 20 scien- 
tific stations on or near the Antarctic Continent. 
In accord with the international program, the 
United States plans to conduct scientific studies 
in meteorology, glaciology, ionospheric physics, 
geomagnetism, aurora and air glow, cosmic rays, 
seismology, and gravity measurements from at 
least three stations in Antarctica. 

Ijogistic support for these U.S. bases will be 
undertaken by the Department of Defense, and 
the Navy has formed Task Force 43 for that pur- 
pose. The U. S. S. Atka, Navy icebreaker, has 
just completed making preliminary observations 
in the Antarctic required for the later expedition. 

The main station to be established next year will 
be located in the Little America area, from which 
parties will depart by tractor trains in October 
1956 to set up the second station in Marie Byrd 
Land. A third station will be built later at or 
near the south geographic pole from materials 
brought in by air. Since most of the supplies for 
all three stations will be cached at the main base 
during the next season, the 1955-56 expedition will 
consist of several ships and planes. 

The International Geophysical Year is a world- 
wide program of coordinated observations in the 
earth sciences organized by the International 
Council of Scientific Unions. The U.S. program 
is carried out under the joint auspices of the 
National Academy of Sciences and the National 
Science Foundation. 

Admiral Byrd will act in an advisory capacity 
in the preparation of operational plans and as a 
consultant in the operational conduct of the ex- 
pedition. He will be a direct representative of 
the Chief of Naval Operations and the Secretary 
of the Navy. 

Captain Dufek has been chairman of interde- 
partmental planning for the Antarctic program 
of the U.S. Government. As Task Force Com- 
mander he will be responsible for the detailed op- 
erational planning and conduct of the expedition 
and have overall command of the surface and air 
forces involved, afloat and ashore. 

Department of Stafe Bulletin 



International Considerations of a Modern Air Logistics System 

hy J. Paul Barringer 



For several years as an Air Force Reserve mo- 
bilization assignee, I have had the unique oppor- 
tunity to witness a little of the long, conscientious 
and imaginative pick-and-shovel thinking, discus- 
sion, and work which has been rather continuously 
applied to the general concept of a modern air 
logistics system. This experience brought home 
to me most forcibly the fact that inherent in the 
concept exist some basic foreign relations consid- 
erations, both direct and indirect. 

These considerations can influence and, in turn, 
will be influenced by the application of the air 
logistics idea and its commercial counterpart — 
expanding international air commerce. Closer 
understanding and cooperation among the free 
peoples of the world can be greatly aided by the 
closer physical ties of modern, constantly improv- 
ing and expanding lines of transport and com- 
munication. 

Against this background of our basic policy of 
international cooperation, and from the State De- 
partment's experience in the complex field of nego- 
tiating for air rights abroad, ai'ise two or three 
specific foreign relations considerations. 

Operating on Foreign Soil 

Basic to the logistics concept is the requirement 
for a high degree of adaptability and flexibility 
throughout the far reaches of the world. Further- 
more, from the potential pipeline, depot, and base 
inventory savings, it follows that perhaps the 
greatest economies will accrue on the longest 
supply lines. 

Obviously, then, the successful military applica- 
tion of the broad concept involves the ability to 
operate on the sovereign soil and into and through 
the sovereign airspace of a great number of for- 
eign nations. Consequently, we are faced with a 
political problem which is all too often not an- 

Apr\\ 18, 1955 



ticipated. It is apparent that to obtain and main- 
tain the necessary military traffic rights from other 
governments the United States must, by its ac- 
tions, its attitudes, and its words, continue to per- 
suade these other governments and the peoples of 
the free world that this military use of their 
ground facilities and airspace is to their advantage 
as well as our own. 

The global application of the air logistics con- 
cept in support of far-flung operational require- 
ments emphasizes once more the inseparability of 
the military and diplomatic postures of our coun- 
try. To phrase it another way, at this time the 
degree of effectiveness of our Nation's airpower 
is in part dependent upon the understanding and 
cooperation of our partners among the other free 
nations of the world. In turn, our partners' co- 
operation stems from their understanding and ap- 
preciation of our airpower intentions and objec- 
tives. A high premium is thus placed upon the 
maintenance of successful foreign relations. Con- 
versely, the very fact that certain avenues of air 
supjjly may be denied to us by sovereign foreign 
action places a greater premium on the adaptabil- 
ity and flexibility of the proposed modern air 
logistics system. This denial may come about in 
other ways than by diplomatic or political deci- 
sions, and it is something we must anticipate in 
emphasizing the greater importance of dispersal. 

Cooperation of Private Industry 

Also essential to the ultimate success of the 
concept will be the cooperation of private indus- 
try with the Air Force. Logically, there should 
follow a healthy process of cross- fertilization of 
ideas for the development of equipment and pro- 
cedures. It does not seem a quixotic flight of 
imagination to envision a developing air logistics 
system as a pilot project for a major new expan- 

645 



siou in the internationiil air movement of commer- 
cial cargoes. Herein lies one of tlie most im])or- 
tant long-range international implications. 

The full meaning of such a commercial devel- 
opment cannot come suddenly within a period of a 
few years. It can only come gradually over a pe- 
riod of a decade, possibly a generation. Yet we 
must today explore the groundwork that we should 
lay and the policies we should adopt in order to 
assure that the United States will be able to hold, 
for many decailes to come, leadership in the com- 
mercial application of the ideas that we explore 
today. 

One basic requirement is a national attitude 
I'.kin to that mentioned above in connection witli 
military rights required of other nations. The 
foreign trade and commerce of the United States 
will probably be able to take advantage of the 
expanding benefits of new techniques of inter- 
national cargo processing, handling, and trans- 
port only insofar as those benefits will at least in 
part likewise accrue to other nations. It does not 
seem realistic to hope long to maintain maximum 
commercial air rights abroad unless the commer- 
cial versions of the military equipment and tech- 
niques also become gradually available to the 
many other partner countries vitally interested 
in air transportation. Otherwise, the commercial 
advantage of our carriers would become unbear- 
able to foreign interests, which, in turn, would 
promptly resort to severely restrictive devices of 
one sort or another. 

Importance of Technical Leadership 

Present United States policies for the exchange 
of commercial rights in international air trans- 
port provide a reasonably good base for the 
healthy expansion of world air commerce. This, 
however, is not a static situation. We shall be 
required to continue our fight to break down short- 
sighted and destructive national and regional re- 
strictions abroad. We must also be careful to 
resist the temptations of undue and self-defeating 
])rotectionism at home. I.*t us keep the lead by 
continuing to design more economic equipment 
and by refinements of efliciency in transport op- 
erations, avoiding at the same time the garden 
path of protective devices. Such technical lead- 
ership can perhaps be best maintained by even 
greater freedom in international commercial avi- 
ation. It would be tragic to see the commercial 

646 



development of a modem air logistics system re- 
tarded by quotas, by divisions of traflic arrange- 
ments between countries, or by the thousand and 
one other restrictive devices. 

Technical leadership has in the past served and 
can in the future continue to serve our aviation 
ol)jectives in a manner not often considered. Im- 
mediately following World War II our country 
had in being air transport equipment and know- 
how not equaled by potential competitor nations. 
These nations wanted both of these products. In 
this atmosi)here we found it possible to obtain 
initial foreign operating rights in most of the 
areas desired. Does it not follow that continued 
leadership can assist in retaining and expanding 
those rights where necessary? 

Role of International Air Commerce 

I approach a final major international consid- 
eration with some risk of flying far beyond our 
basic subject area. Yet it seems desirable to gain 
somewhat greater altitude from which to get a 
l>resent-day perspective on the 60-year-old con- 
cepts of the famous Admiral Mahan. You will 
recall the wide acceptance of his theories of the po- 
litical import of naval power in support of the 
economic power of a successful merchant marine. 
Likewise, we should take a backward look at the 
more recent writings of leading European geopoli- 
ticians in the 1930's and the early 1940's who placed 
greater emphasis on the pivotal land mass of Asia, 
and stated that is was unapproachable by sea- 
power. Military airpower as it exists today has 
already become a balancing if not controlling fac- 
tor in the contemporarj* geopolitical scene. Inter- 
national air commerce can and will in time add a 
related factor which will create a situation in the 
air comparable to and overtaking Admiral Ma- 
han's thesis of the role of seapower in conjunction 
with ocean commerce. Certainly, a modem air 
logistics system is an essential part of the inevita- 
ble dcveloi)ments toward tliat situation. 

If there is any possible validity to these admit- 
tedly sweeping and crystal-ball conclusions, can 
we ali'ord to neglect any means by which our coun- 
try can be assured of its leading role in this new 
geopolitical world? Neglect of any facet of air- 
power, particularly air logistics and its commer- 
cial counterparts, would be inexcusable. Nor does 
the present appear to be the time for any curtail- 
ment of our international commercial air trans- 

Department of Stale Bulletin 



port routes and services. On the contrary, it can 
be argued that more time and effort should be ex- 
pended on finding and developing new, shoi'ter, 
and more efficient lanes for future world air 
commerce. 

The Long-Range View 

Coming in rapidly for a landing, I see a con- 
temporary reaction that any effort to look ahead, 
even for a decade, is visionary, impractical, and 
misleading. I firmly believe that any attempt to 
set forth the international considerations of our 
basic subject only in terms of the present and im- 
mediate future would be dangerously shortsighted. 
Certainly those who have envisioned a modern 
air logistics system have been thinking "way down 
the road." Otherwise contemporary obstacles 
would have long since frustrated imagination. 
Without the courage of imagination the many de- 
. voted Air Force officers who worked on the con- 
cept would not have seen today the general ac- 
ceptance of their ideas. 

There are no specific delimitations, no pat an- 
swers to the future international considerations 
that evolve from this concept. We must not fear 
to generalize or to look ahead for a decade or two 
or even a generation or two. Only thus can we 
correctly make the necessary judgments, lay our 
present plans, and build a lasting foundation for 
the constructive use of the world's airspace and, 
more pertinently, for the protection of our Nation 
in, by, and through the air. Any other course 
would seem to me to jeopardize the peace and pros- 
(lerity of future generations of our coimtry and 
)f the free world. 

I'o sum up some of these ideas: 

First, the concept of a modern air logistics 
^^jstem is completely in line with our country's 
3asic policy of international cooperation and ex- 
Dansion of international trade. 

Second, the most successful development of the 
jurely military application of the concept of an 
^r Force air logistics system can be greatly as- 
'iisted by the undei-standing and cooperation of 
he other nations of the free world. 

Third, the adaptation of the military concept to 
;ivil use can gradually become an extremely im- 
jortant instrument of international commerce 
'.ontributing to the economic well-being and thus 
•o the peace of the world. 



[ 



pri/ 78, 7955 



Fourth, the ability to hold leadership in the 
design, construction, and operation of new equip- 
ment and in new techniques will contribute to the 
freedom with which our aviation will, over the 
long I'un, operate on a global basis. 

Fifth, to assure its proper place in the new 
geopolitical scheme of the world our country must 
constantly strive to hold and to revitalize its total 
aviation leadership. 

Neglect of these considerations would jeopard- 
ize leadership in the air, without which political 
leadership would be lost and national survival 
would be questionable. 

A modern air logistics system and its ramifica- 
tions will become vital parts of that leadership. 
The benefits of this system can only be fully re- 
alized by our collective imagination and our will 
to drive ahead in a highly competitive race, never 
losing sight of the importance of free-world 
cooperation. 

• Mr. Barringer, author of the above article, is 
Director of the Office of Transport and Comnmni- 
cations. His article is based on an address made 
before a conference on air logistics sponsored by 
the Air Force Association, Washington, D.C., on 
December 16, 195Jf. 



Views of U.S., U.K., and France 
on Austrian State Treaty 

TEXT OFiTRIPARTITE DECLARATION 

Press release 187 dated AprU 5 

For many years the Governments of the United 
Kingdom, the United States and France have 
sought to conclude an Austrian state treaty. They 
have made ceaseless efforts thus to bring about the 
restoration of Austrian freedom and independence 
at the earliest possible moment. 

At the Berlin conference in 1954 the three gov- 
ernments expressed their readiness to sign the 
draft state treaty with the Soviet texts of the pre- 
viously unagreed articles. This would have re- 
sulted in the termination of the occupation and the 
withdrawal of all foreign troops within three 
months of the entry into force of the treaty. But 
the Soviet Government declined and insisted on 
putting forward new and unacceptable conditions 
which would have infringed Austrian sovereignty. 

647 



The tliree governments have followed closely 
the recent exchanges between the Austrian Gov- 
ernment and the Soviet Government on matters 
relating to the state tresity. From these exchanges 
it appears that the Soviet Government may now 
have certain clarifications to offer regarding their 
policy toward Austria, in particular on the ques- 
tion of the independence and sovereignty of that 
country already provided for in the first five arti- 
cles of the draft treaty. The three governments 
trust that the decision of the Austrian Govern- 
ment to accept the Soviet invitation to Moscow 
will result in useful clarifications. 

Questions relating to the conclusion of the state 
treaty are of concern to the governments of all 
four responsible powers, as well as to the Austrian 
Government. The Governments of the United 
Kingdom, United States and France accordingly 
consider tliat if the Soviet Government should offer 
proposals which hold clear promise of the restora- 
tion of freedom and independence to Austria, 
these could appropriately be discussed by the four 
Ambassadors in Vienna with the participation of 
the Austrian Government. 

It remains the earnest desire of the Govern- 
ments of the United States, United Kingdom and 
France to conclude the state treaty as soon as 
possible in conformity with principles which 
would insure Austria's full freedom and inde- 
pendence. 



Increased Road Tolls 
in East Zone of Germany 

Following is the text of a letter from U.S. High 
Commissioner James B. Conant to Soviet High 
Commissioner G. M. Pushkin concerning increased 
road tolls in the East Zone of Germany.^ which was 
delivered to Soviet Headquarters in Berlin on 
April 1. Similar letters were sent hij the French 
and British High Commissioners. 

It has been brought to my attention that the 
East German authorities propose to increase dras- 
tically, with effect from April 1, the fees which 
vehicles not registered in the Soviet Zone are 
charged for the use of roads within the Soviet 
Zone. In practice, this measure would affect pri- 
marily vehicles registered in the Federal Republic 
and West Berlin. 

648 



The reason given for this measure is that addi- 
tional funds are required to maintain the roads in 
the Soviet Zone. Substantial contributions are 
already being made by operators of Berlin and 
"West German vehicles for this purpose. If there 
were actually any new problem in this connection, 
this could most appropriatelj' be discussed by East 
German experts with the Treuhandstelle fuer den 
I nterzonenhandel. 

The proposed increases are, however, so exorbi 
tant that they cannot be justified purely on eco- 
nomic grounds. Increases which would amount in 
many cases to fees of more than ten times the 
present rate would be so abnormal that this meas- 
ure can only be regarded as politically inspired 
and intended to impede the free movement of 
persons and goods between the Federal Republic 
and Berlin, as well as between the Federal Re- 
public and the Soviet Zone. 

Any action which might have this result would 
clearly conflict with the obligations contained in 
the New York and Paris agreements of May and 
June, 1949. I hope therefore that in view of the 
responsibilities of the Soviet authorities in such 
matters you will have the necessary steps taken to 
have the proposed measure withdrawn without 
delay. 



Proceedings Against Czeclioslovakia 
in 1953 Plane Case 

DEPARTMENT ANNOUNCEMENT 

Press release 191 dated April 5 

H. Freeman Matthews, American Ambassador 
at The Hague, on March 29, 1955, filed with the 
International Court of Justice an application by 
the U.S. Government instituting proceedings 
against the Czechoslovak Government. This was 
made public March 30, 1955, by the International 
Court of Justice. The proceedings were instituted 
on account of the destruction over Germany on 
March 10, 1953, of a U.S. Air Force F-S4-typ6 
aircraft. Herman Phleger, the Legal Adviser of 
the Department of State, has been appointed agent 
of the United States for these proceedings. 

As an annex to the application there was trans- 
mitted a copy of the formal diplomatic note de- 
livered to the Czechoslovak Government by the 
U.S. Government on August 18, 1954, in which 

Department of State Bulletin 



the Czechoslovak Government was charged with 
liability for the incident.^ In the note damages in 
the sum of $271,38-4.16 were demanded and the 
Czechoslovak Government was invited, in the 
event it disputed its liability, to join in submitting 
the dispute to the International Court of Justice. 
The Czechoslovak Govertiment having failed to 
reply to this note, or to a further note of November 
26, 1954,- requesting a statement of its intentions 
in the matter, the U.S. Government determined to 
file an application with the International Court 
of Justice. The Kegistrar is expected in due course 
to transmit copies of the application both to the 
Czechoslovak Government and to all governments 
entitled to appear before the Court, as provided 
by the rules of the Court. 

The U.S. Government is following the practice 
established in the case of applications filed against 
the Soviet and Hungarian Governments on March 
. 3, 1954,^ on account of the actions of those Govern- 
ments in connection with four American airmen 
I who came down on Hungarian soil in a U.S. Air 
. Force C-47 aircraft on November 19, 1951. It is 
1 seeking to pursue the policy of exhausting every 
available legal means in order to bring an end to 
I lawless attacks upon U.S. military aircraft and 
their crews. This policy was last announced by 
Ambassador Henry Cabot Lodge on September 
10, 1954, in the Security Council of the United 
Nations * in the course of the debate on a compar- 
iililc attack by Soviet fighters against a U.S. Navy 
Xeptune-type aircraft over the Sea of Japan. 



TEXT OF APPLICATION TO INTERNATIONAL 
COURT OF JUSTICE 

March 22, 1955 

■sm: 

1. This is a written application, in accordance 
fvith the Statute and Rules of the Court, submitted 
3y the Government of the United States of Amer- 
ica instituting proceedings against the Govern- 
oaent of Czechoslovakia on account of certain 
vrongful acts committed by MIG-type aircraft 
from Czechoslovakia within the United States 
;one of occupation in Germany on March 10, 1953. 



" Bulletin of Aug. 30, 1954, p. 302. 
' Not printed here. 
' Ibid., Mar. 22, 1954, p. 449. 
' Ibid., Sept. 20, 1954, p. 417. 

\pnl 18, 1955 

B39322 — 55 .•? 



The subject of the dispute and a succinct state- 
ment of the facts and grounds upon which the 
claim of the Government of the United States of 
America is based are adequately set forth in a note 
delivered to the Czechoslovak Government on Au- 
gust 18, 1954. A copy of the note is attached to 
this apjslication as an annex. The Czechoslovak 
Government has failed, although the time therefor 
has long since elapsed and although the United 
States Government has duly urged the Czecho- 
slovak Government to make reply, to respond to 
the United States Government's note, but the 
Czechoslovak Government asserted its contentions 
in prior diplomatic correspondence on this sub- 
ject, and the nature of those contentions is ad- 
verted to in the annex. 

2. The United States Government notes that the 
present dispute concerns matters of the character 
specified in Article 36 (2) of the Statute of the 
Court, including subdivisions (a) through (d). 
As will be seen from the annex, the legal dispute 
of the United States Government with the Czecho- 
slovak Government involves, among other ques- 
tions of international law, the scope and applica- 
tion of international obligations relating to the 
overflight of intruding military aircraft, embodied 
in part in the Convention on International Civil 
Aviation, adopted December 7, 1944; the duties 
of the ground controllers and pilots of intruding 
military aircraft with respect to interception and 
identification by patrolling domestic aircraft in 
the country of intrusion ; the content and applica- 
tion in case of such overflight of obligations to 
signal between patrolling and intruding aircraft; 
the nature of the rights, prerogatives and powers 
of the United States Government and the United 
States Air Force in the United States zone of oc- 
cupation in Germany with respect to the control 
of air traffic in general and the overflight of for- 
eign military aircraft; together with numerous 
issues of fact which if resolved in favor of the 
United States Government would constitute 
breaches of international obligation by the Czecho- 
slovak Government ; and the nature and extent of 
the reparations to be made by the Czechoslovak 
Government to the United States Government for 
all these breaches. 

The United States Government, in filing this 
application with the Court, submits to the Court's 
jurisdiction for the purposes of this case. The 
Cz'^flhoslovak Government appears not to have 

649 



filed any declaration with the Court thus far, al- 
though it was invited to do so by the United 
States Government in the note annexed hereto. 
The Czechoslovak Government, however, is quali- 
fied to submit to the jurisdiction of the Court in 
this matter and may upon notification of this 
application by the Registrar, in accordance with 
the Rules of the Court, take the necessary steps to 
enable the Court's jurisdiction over both parties 
to the dispute to be confirmed. 

The United States Government thus founds the 
jurisdiction of this Court on the foregoing con- 
siderations and on Article 36 (1) of the Statute. 

3. The claim of the Government of the United 
States of America is briefly that the Government 
of Czechoslovakia on March 10, 1953 willfully and 
unlawfully caused MIG-type military aircraft to 
overfly the Czechoslovak-German border, and 
without any provocation, to pursue and attack 
United States Air Force F-84-type aircraft which 
were engaged in peaceable routine patrol of the 
air space within the United States zone of Ger- 
many, destroying one F-84-type aircraft and caus- 
ing physical injury to the pilot thereof, an 
American national, as well as other damage spec- 
ified in the annexed note. The United States 
Government claims that in the circumstances de- 
scribed in the annex these actions constituted 
serious violations of international obligation on 
the part of the Czechoslovak Government. For 
these breaches of international obligation the 
United States Government has demanded and 
demands monetary and other reparation from the 
Czechoslovak Government. 

At earlier stages of the diplomatic negotiations, 
which must now be determined to have been ex- 
hausted, the Czechoslovak Government asserted 
an entirely contrary version of the facts, which is 
described in the amiexed note. The United States 
Government, in further pleadings herein, will 
more fully set forth such issues of fact and the 
issues of law in this dispute, for the purpose of 
hearing and decision by the Court in accordance 
with the Statute and Rules. It will request that 
the Court find that the Czechoslovak Government 
is liable to the United States Government for the 
damage caused; that the Court award damages in 
favor of the United States Government against 
the Czechoslovak Government in the sum of 
$271,384.10, with interest, and such other repara- 
tion and redress as the Court may deem to be fit 
and proper; and that the Court make all other 

650 



necessary orders and awards, including an award 
of costs, to effectuate its determinations. 

4. The undersigned has been appointed by the 
Government of the United States of America as 
its agent for the purpose of this application and 
all proceedings tliereon. 
Very truly yours, 

Herman Phleger 
The Legal Adviser 

of the 
Department of State 

The Registr^vr of the 

International Court of Justice, 
The Hague, Netherlands. 



Award of Legion of Merit to 
Foreign Military Personnel 

The President on March 15 signed an Executive 
order which will permit the Secretary of Defense 
or his designee to award the Legion of ISIerit in the 
degrees of Conunander, Officer, and Legionnaire 
to members of the anned forces of friendly foreign 
nations. 

The Legion of Merit, in the degree of Chief 
Commander, will continue to be awarded by the 
President, as at present. All proposals for award 
of the decoration to military personnel of friendly 
foreign nations must be passed upon by the 
Secretary of State. 

The Executive order also makes certain teclini- 
cal changes to bring up to date the provisions of 
Executive Order 9260 of October 29, 1942, pre- 
scribing the rules and regulations governing the 
award of this decoration, which was created by 
tlie act of July 20, 1942. When awarded to U.S. 
military personnel, the medal is of only one 
degree. 

EXECUTIVE^ORDER 10600 > 

AMENDING EXECUTIVE ()R1>ER NO. 9260' OF 
OCTOBER 29. 1942, ENTITLED "LEGION OF MERIT" 

By virtue of the autliority vested in me by sectitm 2 of 
the Act of July 20, 1942, 56 Stat. 662, and section 301 of 
title 3 of the United States Code, paragraphs 1, 2, and 3 
of Executive Order No. 9260 of October 29, 1W2, are 
hereby amended to read as follo\\s : 



' 20 /'crf. Reg. 1569. 
' 7 Fed. Reg. 8819. 



Department of Stale Bulletin 



"1. The decoration of the Legion of Merit shall be 
awarded by the President of the United States or at his 
direction to members of the armed forces of the United 
States and members of the armetl forces of friendly foreign 
nations, who, after the proclamation of an emergency by 
the President on September 8, 1939, shall have dis- 
tinguished themselves by exceptionally meritorious con- 
duct in the performance of outstanding services. 

"2. Awards of the decoration of the Legion of Merit 
may be proposed to the President by the Secretary of the 
Army, the Secretary of the Navy, and the Secretary of the 
Air Force, each acting upon the recommendation of au 
officer of the armed forces of the United States who has 
personal knowledge of the services of the person recom- 
mended. 

"3 (a). The decoration of tlie Legion of Merit, in the 
degrees of Commander, Officer, and Legionnaire, shall be 
awarded by the Secretary of Defense or his designee, after 
concurrence by the Secretary of State, to members of the 
armed forces of friendly foreign nations. 

"(b). Recommendations for awards of the Legion of 
Merit, in the degree of Chief Commander, to members of 
the armed forces of friendly foreign nations shall be 
submitted by the Secretary of Defense, after concurrence 
by the Secretary of State, to the President for his ap- 
proval." 



X^ C-ts-jr ^-t>0'C/->Ot^ A^^<.>^ 



The White House. 

March 15, 1955. 



lUnited Nations Day, 1955 



A PROCLAMATION ' 

Whekeas the United States of America was one of the 
nations instrumental in establishing the United Nations 
in an effort to save succeeding generations from the 
scourge of war ; and 

Whereas It is the consistent policy of the Government 
of the United States to encourage and support the work 
of the United Nations in that effort ; and 

Whereas the United Nations has entered on its tenth 
year of unremitting labor toward realizing the hopes of 
mankind for an ordered world based on the supremacy of 
reason and justice ; and 

Whereas the General Assembly of the United Nations 
has resolved that October 24, the anniversary of the com- 
ing into force of the United Nations Charter, should be 
Jedicated each year to making known the aims and ac- 
:omplishments of the United Nations, and has called on 
the Governments of all Member States especially to com- 
memorate the tenth anniversary of the establishment of 
iie United Nations : 

Now, therefore, I, DwiGHT D. Eisenhower, President 
3f the United States of America, do hereby urge the 
;itizens of tliis Nation to observe Monday, October 24, 
L955, as United Nations Day by means of community 



' No. 3090 ; 20 Fed. Reg. 2297 
^pril 18, 1955 



programs that will demonstrate their faith in, and support 
of, the United Nations and that wiU create a better public 
understanding of its problems and of its aims and achieve- 
ments. 

I also call upon tlie officials of the Federal, State, and 
local Governments, the United States Committee for the 
United Nations, representatives of civic, educational, and 
religious organizations, and agencies of the press, radio, 
television, and motion pictures, as well as all citizens, to 
cooperate in appropriate observance throughout our coun- 
try of this tenth anniversary of the United Nations. 

In witness whebeof, I have hereunto set my hand and 
caused the Seal of the United States of America to be 
affixed. 

Done at the City of Washington this fifth day of April 
in the year of our Lord nineteen hundred and 

[seal] flfty-flve, and of the Independence of the 
United States of America the one hundred and 
seventy-ninth. 

By the President : 

John Foster Dulles 
Secretary of State 



I titer- American Commission of Women 
To Meet in Puerto Rico 

The Department of State announced on April 2 
(press release 181) that the Inter- American Com- 
mission of Women has accepted the invitation of 
the United States to hold its tenth assembly at San 
Juan, Puerto Kico, opening on May 29. 

The tenth assembly of the Commission was 
originally scheduled for last November in Haiti, 
but the hurricane which damaged that country 
necessitated postponement of the meeting. In 
view of that situation, Governor Munoz Marin of 
the Commonwealth of Puerto Rico notified the 
Department of State that Puerto Rico would be 
happy to offer a meeting place. Consequently, 
the State Department invited the Commission to 
hold its tenth assembly in Puerto Rico. 

The Inter-American Commission of Women is 
a specialized organization of the Organization of 
American States and consists of one delegate from 
each country, appointed by her Government. The 
Commission was created by resolution of the 
Sixth Pan American Conference at Habana in 
1928. Its present chairman is Seiiora Concepcion 
Leyes de Chavez, representative of Paraguay on 
the Commission. The U.S. representative is Mrs. 
Floyd I-(ee of New Mexico. 



651 



The United Nations Refugee Program 



by Christopher H. Phillips 

Dep^ity Assistant Secretary for International Organization Affairs ^ 



You have heard several talks about United 
States activities in the refugee field and you may 
now be wondering why anything more needs to be 
done to solve the problem. 

As others have no doubt told you, the refugee 
problem is a big one and, under present world con- 
ditions, a continuing one. We and other free- 
world nations encourage oppressed people to 
escape from behind the Iron Curtain. Whether 
on moral or political grounds, therefore, we have 
an obligation to see that those wlio have undergone 
incredible dangers and hard.ships for freedom's 
sake are not disillusioned when they finally 
achieve it. 

Though much good work is being done bj' Icem 
[Intergovernmental Committee for European 
Migration] and the U.S. Escapee Program, there 
are still many thousands of people who for vari- 
ous reasons will not be assisted by any existing 
governmental or intergovernmental program. 
The most tragic of these are refugees who, 10 
yeai-s after the war, still live in camps mider 
the most wretched conditions. There are about 
80,000 such people today, located in Austria, 
Greece, Germany, and Italy. For them, many of 
whom are too young or too old, too sick or too dis- 
abled to be eligible for migration to new coun- 
tries, there is little hope. Many children born in 
these camps have known nothing in their young 
live,s but the hardships and degradations of camp 
life. 

A .solution to the problem of these camp refugees 
is the number-one priority of a new program being 
undertaken by the United Nations Iligh Commis- 



* Address mnde liefore the AssPinWy on the KrfuBpe 
Proprnni sponsnrrd by the Foreign Opor.itions .\dniinist ra- 
tion nt Wnshlncton, D. C, on Apr. 1. 

652 



sioner for Refugees. In the few minutes I have I 
want to tell j'ou briefly about who and what the 
United Nations High Commissioner for Refugees 
is. 

First, a word about the man himself. His name 
is Dr. van Heuven Goedhart. He is a distin- 
guished Dutchman who worked in the Dutch un- 
derground during the war. Only a few weeks 
before D-Day he escaped from Holland and made 
his way by foot through German-occupied Bel- 
gium and France and then across the PjTenees 
into Spain. He finally reached London only 10 
days before D-Day. 

What is the Office of the United Nations High 
Commissioner for Refugees? Actually it is a 
part of the United Nations itself. It was estab- 
lished in 1050 by the General Assembly. The 
Office of the High Commissioner has three main 
functions: (1) international protection; (2) emer- 
gency aid; (3) permanent solutions. The new 
program now being undertaken by the High Com- 
missioner is concerned primarily with the third 
function. 

Program for Permanent Solutions 

Last October the General Assembly authorized 
the High Commissioner to undertake a 4-year pro- 
gram to find permanent solutions for certain cat- 
egories of refugees under his mandate.- By 
"permanent solutions" the High Conmiissioner has 
in mind a program to assimilate refugees into the 
countries in which they now reside — to make them 
useful and productive citizens and to rekindle hope 
in their futures. If the program is successful, 
about 180,000 refugees, whose future today is bleak 



• Bt-LLETIN of Nov. 8, 1054, p. 705. 

Department of State Bulletin 



indeed, will become self-supporting and self- 
respecting human beings. 

This is a self-help program, and under the Gen- 
eral Assembly resolution it is limited to 4 years — 
it expires December 31, 1958. The High Commis- 
sioner is authorized to seek voluntary contribu- 
tions from governments to help finance this pro- 
gram. A 4-year target total of $16 million has 
been set and the budget for the first year's opera- 
tion is $4.2 million. In order to qualify for aid 
from the High Commissioner's fund, the countries 
of residence must agree to make adequate con- 
tributions from their own resources. This, com- 
bined with supplies and services already being 
provided by those governments, will mean that, 
for every dollar given by the High Commissioner, 
one or two dollars will be made available by the 
countries of residence. 

The President is expected to ask Congress for 
1 United States contribution for the first year's 
Dperation of the program which will probably be 
in the neighborhood of $1.5 million. 

Perhaps one or two illustrations of proposed 
projects under the permanent solutions program 
ivill help you to understand just how the High 
ZIommissioner plans to integrate these refugees 
nto the countries of their residence. 

In Austria, for example, there is a planned proj- 
ect to enable 20 refugee families, totaling 80 peo- 
ple, to become self-supporting in the field of 
igriculture. The project involves the gi'anting 
)f long-term loans at a very low rate of interest 
o enable the refugee farmers to buy and equip 
mall farms. In this case the total cost for the 
families would amount to $50,000. Only 
I7,ri00 would come from the High Commission- 
r's fund. The remaining $32,500 must be pro- 
ided from Austrian sources. Of course, as these 
);iiis are repaid, the money becomes available 
uain to help finance other refugee needs in the 
iiture. This is a sort of revolving-fund pro- 
I'dure, which gets the most for every dollar 
|)ent. 

In Italy there is a group of refugees, both in 

'lid out of camps, who have no chance of emigrat- 

ig. Man}' are chronically sick, former TB pa- 

• ents, and refugees suffering from various phys- 

al disabilities which prevent them from being 

. )nsidered for emigration to other countries. A 

sluntary agency has developed a project, based 

1 past experience, to group these refugees to- 



gether with other refugees whose age and healtk 
enable them to work. The whole group, thus 
constituted, would be assisted to purchase a farm 
large enough to be economically productive 
Through experience it has been shown that it 
takes 2 years for an enterprise of this sort to be- 
come self-supporting. During those 2 years, there- 
fore, it will be necessary for the refugees to re- 
ceive the help and advice of a manager, whose- 
salary would be included in the budget establish- 
ing the enterprise. 

The total cost of this project, which will ac- 
commodate 35 refugees and the members of their 
families, is $60,000. More than half of this would 
be contributed by voluntary agencies interested in 
the project. The remainder would be provided 
from the High Commissioner's fund. 

These and many other projects providing for 
integration into a wide variety of useful and pro- 
ductive activities constitute the main element of 
the High Commissioner's program. Although 
the chief emphasis is putting people to work, ther& 
are continuing needs which require emergency 
assistance, and a small portion of the High Com- 
missioner's fimd will be used for that purpose. 

Cooperation With ICEM 

The tragic lot of some 12,000 European refugees 
still on the Chinese mainland imposes the heaviest, 
burden on the High Commissioner's emergency as- 
sistance funds. These people are mostly "Wliiter 
Russians who fled Russia at the time of the revo- 
lution and settled in China. After 30 years they 
find themselves once more fleeing from Communist 
persecution. Many of these unfortunate people- 
are receiving their sole subsistence from the emer- 
gency assistance funds of the High Commissioner. 
As a result of a joint operation conducted by the 
High Commissioner and Icem, some of these refu- 
gees are being brought out of Red China through 
Hong Kong. It has been a slow, difficult process; 
but some headway has been made. Once they have- 
arrived in Hong Kong, Icem tries to find homes; 
for them in other countries and provides transpor- 
tation to these new homes. 

Before I conclude I want to say one word about, 
the relationship between the High Commission- 
er's program and the other programs you have- 
heard discussed here today. It might seem at first 
glance that overlapping or duplication exists. I 
hope by now, however, you realize that the refugee- 



oril 18, 7955 



653: 



problem is still so large in scope that instead of 
having too much activity there is in fact too little. 

The High Commissioner's program is, as I have 
pointed out, primarily concerned with integrating 
refugees into their countries of residence. To the 
extent that Icem succeeds in providing migration 
opportunities for refugees, the High Commission- 
er's problem is simplified. So you see there is a 
complementary relationship between the two or- 
ganizations. Since in the final analysis it is the 
voluntary agencies who carry out most of these 
programs at the grassroots, they are in the best 
position to make certain that funds from the three 
major governmental or intergovernmental refu- 
gee agencies are effectively used. Finally, there is 
constant and close contact between the heads of the 
agencies both in Geneva and through their branch 
offices in the countries in which they operate. 

I hope in these few minutes I have given you at 
least a bird's-eye view of what the United Nations 
High Commissioner for Refugees is trying to ac- 
complish. I am convinced it is a program that 
merits the wholehearted support of the American 
people. 



$20 Million Loan to Pakistan 
for Defense Support 

On March IG the Foreign Operations Adminis- 
tration announced a $20 million loan to Pakistan 
as part of a $65.5 million U.S. defense support 
program for Pakistan during the current fiscal 
year.^ The loan is repayable in Pakistan rupees 
over a period of 40 years at 4 percent interest. 

The loan accords with a provision in Public Law 
665 (sec. 505) that of funds made available to 
FoA, including foreign currencies received from 
the sale of surplus agricultural commodities, the 
equivalent of $200 million or moi'e in assistance to 
foi'eign countries must be in the form of loans. 

Under the $65.5 million U.S. defense support 
program announced in January for Pakistan, $-10 
million are earmarked for essential consumer goods 
and $20 million for defense support projects, in- 
cluding domestic aviation; improving the water 
supply of Karachi, the country's capital; and 



' For texts of a defense support ngreement with 
Pakistan signed on Jan. 11, 105.'>, and a surplus commodity 
agreement signed on Jan. 18, 1955, see Bulletin of Feb. 21, 
1955, p. 308. 

654 



irrigation. Consumer goods to De acquired in- 
clude sugar, fertilizer, tallow, iron and steel, 
chemicals, drugs and pharmaceuticals, petroleum 
products, nonferrous metals, industrial machinery, 
and vehicles. 

The Pakistan loan agreement was signed by the 
Charge d'Affaires of the Pakistan Embassy, M. 
Shafqat, in the absence of Ambassador Syed 
Amjad Ali, who is temporarily in his home 
country, and IMaj. Gen. Glen E. Edgerton, U.S. 
Army, retired, chairman of the Board of the Ex- 
port-Import Bank of Washington. The Bank 
administers the Foreign Operations Administra- 
tion's assistance loans after they have been nego- 
tiated by the U.S. Department of State with the 
assistance of Foa. 



FOA Announces Loan to India 
for Development Assistance 

A $45 million loan to India, the largest nego- 
tiated so far under provisions of the Mutual 
Security Act, was announced on March 22 by the 
Foreign Operations Administration. The loan is 
a portion of Foa's $60.5 million development assist- 
ance program for India for the current fiscal j'ear. 
This assistance is coordinated with the Five- Year 
Economic Development Program, under which 
India is working to increase food production, 
eradicate disease, further rural community de- 
velopment, raise educational standards, rehabili- 
tate its railways, and develop industry, electric 
power, and irrigation. 

The program of American-Indian economic 
cooperation began in January 1952. Since that 
time a total of $260.1 million has been made avail- 
able to India by the U.S. Congress. Of this year's 
aid program, $60.5 is for development assistance 
and there is $15.1 for technical cooperation. The 
development assistance funds will be used to ac- 
quire wheat, cotton, steel, fertilizer, railway rolling 
stock and equipment, and supplies for malaria 
control. 

The loan of March 22 was made under a section 
in the Mutual Security Act (sec. 505, P. L. 665), 
which provides that of funds made available to Foa 
this year, including foreign currencies received 
from the sale of surplus agricultural commodi- 
ties, the equivalent of $200 million or more in 
assistance to foreign countries is to be in the form 
of loans. 



Department of Stale Bulletin 



The loan agreement was signed by the Indian 
Ambassador, Gaganvihari Lallubhai Mehta, and 
Maj. Gen. Glen E. Edgerton, U.S. Army, retired, 
chairman of the Board of the Export-Import 
Bank of Washington. 



Delegation of Authority for 
Administering Commodity Set-Aside 

White House press release dated March 21 

The President on March 21 issued an Executive 
order delegating to the Secretary of Agriculture 
the functions relating to commodity set-asides con- 
ferred upon the President by Title I of the Agri- 
cultural Act of 1954. 

Title I of that act directs the Commodity Credit 
Corporation to set aside within its inventories up 
to $2.5 billion worth of agricultural commodities 
acquired under price support operations for 1954, 
and prior crops and production, and authorizes the 
President to dispose of the set-aside quantities in 
specified types of outlets and in ways that will 
provide adequate safeguards against interference 
with normal marketings of these commodities out- 
side the commodity set-asides. 

This Executive order assigns the responsibili- 
ties for set-aside disposals to the Secretary of 
Agriculture and provides for the coordination of 
these functions with other appropriate Federal 
agencies. 

The commodity set-asides under Title I of the 
Agricultural Act of 1954 are designed to insulate 
the set-aside quantities from normal trade chan- 
nels. They are excluded from the computations 
of carry-over stocks used in detennining the min- 
imum levels of price support imder the flexible 
system of price supports in effect for 1955 and 
later years. 

Set-asides of CCC-owned commodities now 
amount to 400 million bushels of wheat and 1 mil- 
lion bales of cotton. 



EXECUTIVE ORDER 10601 > 

Administeation of Commodity Set-Aside 



By virtue of the authority vested in me by the Agri- 
cultural Act of 1954 and by section 301 of title 3 of the 



^^20 Fed. Reg. 1761. 
April 18, 1955 



United States Code, 65 Stat. 713, and as President of 
the United States, it is ordered as follows : 

Section 1. (a) Subject to the provisions of this Execu- 
tive order, the functions conferretl upon the President 
by Title I of the Act of August 28, 1054, Public Law 690, 
68 Stat. 897 (the Agricultural Act of 1954), hereinafter 
referred to as Title I, are hereby delegated to the Secre- 
tary of Agriculture. 

(b) The authority delegated by this order is exclusive 
of the authority to declare any national emergency. 

Sec. 2. Functions under Title I respecting the disposal 
outside the United States of commodities in the commodity 
set-aside shall be subject to the responsibilities of the 
Secretary of State with respect to the foreign policy of 
the United States as such policy relates to the said 
functions. 

Sec. 3. Strategic materials shall be acquired under sec- 
tion 103(a)(2) of Title I only in accordance with pro- 
grams certified by the Director of the OflBce of Defense 
Mobilization. 

Sec. 4. Existing procedures of coordination among Fed- 
eral agencies pertaining to the disposal of agricultural 
surpluses under other laws shall be applicable, so far as 
is permitted by law and otherwise appropriate, in the 
carrying out of Title I. 

Sec. 5. The provisions of Part II of Executive Order 
No. 10575 of November 6, 1954 (19 F.R. 7252) are hereby 
extended and made applicable to the carrying on abroad 
of functions under Title I. 

Sec. 6. This order shall not be deemed to amend or 
supersede any provisions of Executive Order No. 10560 
of September 9, 1954 (19 F.R. 5927). 

^_J CK J t y L-'CZ^ C»-<u.^ A^Kf^^ 

The White House, 
March 21, 1955. 



Modification of Restrictions 
on Imports of Peanuts 

WHITE HOUSE ANNOUNCEMENT 

White House press release dated March 9 

The President on March 9 issued a proclamation 
permitting an additional 51,000,000 pounds of pea- 
nuts, averaging more than 40 kernels per ounce, 
to be imported into the United States or with- 
drawn from warehouse from now until June 30, 
1955, the end of the current quota year. Entries 
of such peanuts would be subject to an additional 
fee of 2<J per pound. 

The President's action, wMch was based upon 
the U.S. Tariff Commission's report of its inves- 

655 



ligation into peanuts,' was necessary because the 
present peanut import quota of 1,709,000 pounds 
has been exhausted and requirements for peanuts 
in tlie United States for the remainder of the 
current quota year cannot be met except by addi- 
tional imports. Last year's domestic peanut crop 
was fxreatly reduced by drought. 

With but one modification, the President ac- 
cepted the recommendations of the majority of 
the Tariff Commission in their entirety. The Com- 
mission reconunended an increase in the added 
fee from 2^ to 4^ per pound on all imports after 
48,000,000 additional pounds had been admitted. 
Because of certain technical legal problems at- 
tendant upon the use of a 44 fee in these circum- 
stances, the President decided to authorize in- 
creased imports at the 2<S per pound additional 
fee in the amount of 51,000,000 pounds. This 
quantity represents a reasonable estimate, based 
upon latest information made available by the 
Tariff Commission, of the prospective need for 
additional peanut imports during the remainder 
of the current quota year. 

The President's proclamation applies to pea- 
nuts, shelled, blanched, salted, prepared, or pre- 
served (including roasted peanuts, but not includ- 
ing peanuts not shelled or peanut butter) . Under 
paragraph 759 of the Tariff Act of 1930, as modi- 
fied, such peanuts are subject to a basic duty of 7^ 
per pound. 

The Tariff Commission's investigation was made 
under section 22 of the Agricultural Adjustment 
Act, as amended, upon a complaint filed by the 
domestic users of peanuts. 

PROCLAMATION 3084' 

WnEitKAs, pursuant to section 22 of tlie Agricultural 
Adjustment Act, as amended (7 U. S. C. 624), I Issued a 
proclamation on June 8, 1953 (No. 3019; 67 Stat. C46) 
limiting the quantities of peanuts, wliether shelled, not 
shelled, blanched, salted, prepared, or preserved (includ- 
ing roasted peanuts, but not including peanut butter) 
which may be entered, or withdrawn from warehouse, for 
consumption in any 12-month period beginning July 1 in 
any year, which proclamation was amended by my procla- 
mation of June 30, 19.^3 (No. 3025; 67 Stat. C54) ; 

Whekeas the total quantity of such peanuts which may 
be entered, or withdrawn from warehouse, for consump- 



' Copies of the report may be obtained from the U.S. 
Tariff Commission, Washington 25, D. 0. 
' 20 Fed. Reg. 1549. 



tion under the said proclamation of June 8, 1953, as 
amended, during the 12-month period beginning July 1, 
1954, has already been entered, or withdrawn from ware- 
house, for consumption ; 

Whereas, pursuant to section 22 (d) of the Agricul- 
tural Adjustment Act, as amended, the United States 
Tariff Commission has made a supplemental investigation 
to determine whether there is need for an additional quan- 
tity of imported peanuts during the remainder of the 
quota year ending June 30, 1955, to meet essential require- 
ments of domestic peanut users, and, if so, what additional 
quantity might be permitted to be entered during the 
current quota year without materially interfering with or 
rendering ineffective the peanut program of the United 
States Department of Agriculture ; 

Whereas the United States Tariff Commission has sub- 
mitted to me a report of its findings and recommendation 
made in connection with the said supplemental investi- 
gation; 

Whereas, on the basis of the said supplemental inves- 
tigation and report of the Tariff Commission, I find that 
changed circumstances require the modification of the ex- 
isting quota restrictions on peanuts which are in eEfect 
for the 12-month period beginning July 1, 1954, pursuant 
to the said proclamation of June 8, 1953, as amended, so 
as to permit the additional quantity of peanuts herein- 
after described to be entered, or withdrawn from ware- 
house, for consumption during the remainder of the quota 
period ending June 30, 1955, subject to the fee hereinafter 
proclaimed ; and 

Whereas I find and declare that the entry, or with- 
drawal from warehouse, for consumption of such addi- 
tional quantity of such peanuts subject to such fee will 
not render or tend to render ineffective, or materially in- 
terfere with, the said program of the Department of 
Agriculture with respect to peanuts, nor reduce substan- 
tially tile amount of products processed in the United 
States from peanuts with respect to which such program 
is being undertalven : 

Now, therefore, I, D WIGHT D. EisE.NHOwEB, President 
of the United States of America, acting under and by vir- 
tue of the authority vested in me by the said section 22 
of the Agricultural Adjustment Act, as amended, do 
hereby proclaim that the said proclamation of June 8, 
1953, as amended by the said proclamation of June 30, 
1953, is hereby modified so as to permit the entry, or with- 
drawal from warehouse, for consumption during the re- 
mainder of the 12-month period beginning July 1, 1954, 
of not more than 51,000,000 pounds (aggregate quantity) 
of peanuts, shelled, blanched, salted, prepared, or pre- 
served (including roasted peanuts, but not including pea- 
nuts not shelled or peanut butter), of sizes averaging in 
representative sami)les more than 40 kernels per ounce, 
subject to a fee of 2 cents per pound but not more than 
50 per centum ad valorem : Provided, That the said fee 
shall he in addition to any other duties imposed on the 
Importation of such peanuts. 

I.\ wiT.NEss WHEREOF I have hereunto set my hand and 
caused the seal of the United States of America to be 
aflixed. 

Done at the City of Washington this ninth day of March 
in the year of our Lord nineteen hundred and 



656 



Department of State Bulletin 



[seal] fifty-five, and of the Independence of the United 
States of America the one hundred and seventy- 



By the President : 

John Foster Dulles 
Secretary of State 



X-y CAJ-y /^-*^0'C«-<_<— . A/kj^^ 



World Trade Week, 1955 

I A PROCLAMATION' 

Whereas it is the desire of the people of the United 
States of America to promote the growth and sliare the 
fruits of freedom and enterprise in peace and prosperity 
with their friends throughout the free world ; and 

Whereas a significant contribution to the develop- 
ment of a lasting peace can be made by the interchange 
of goods and services and freedom of travel, and the 
mutual understanding thus attained can become the basis 
of true international friendship ; and 

Whereas higher standards of living and better eco- 
nomic utilization of the world's resources can be promoted 
through an increased international exchange of goods, 
services, and capital ; and 

Whereas international trade is a lieystone in promoting 
international stability and developing resources, culture, 
and security ; and 

Whereas the economic strength upon which the free 
world's common defense is based can be increased by 
international trade: 

Now, therefore, I, DWIGHT D. EISENHOWER, Presi- 
dent of the United States of America, do hereby proclaim 
the week beginning May 22, 1955, as World Trade Week ; 
and I request the appropriate officials of the Federal 
Government and of the several States, Territories, pos- 
sessions, and municipalities of the United States to co- 
operate in the observance of that week. 

I also urge business, labor, agricultural, educational, and 
civic groups, as well as people in the United States gen- 
erally, to observe World Trade Week with gatherings, dis- 
cussions, exhibits, ceremonies, and other appropriate 
activities. 

In witness whereof, I have hereunto set my hand and 
caused the Seal of the United States of America to be 
affixed. 

Done at the City of Washington this twenty-fifth day 
of March in the year of our Lord nineteen 

[seal] hundred and fifty-five, and of the Independ- 
ence of the United States of America the one 
hundred and seventy-ninth. 



Xy C**-^ i^-*>C/ CAiCt-. A-n-^jy^ 



By the President : 

John Foster Dulles 

^Secretary of State 



President's Decisions on 
Tariff Commission's Findings 

White House press releases dated March 24 

Imports of Walnuts 

The President on March 24 concurred with the 
Tariff Commission's recent finding that there is no 
need for restrictions on imports of walnuts during 
the current marketing year for walnuts, which ends 
on September 30, 1955.^ 

In September 1954, when the Tarifl' Commission 
submitted to the President its report on edible 
tree nuts made pursuant to section 22 of the 
Agricultural Adjustment Act, as amended, the 
Commission reported findings with respect to 
almonds and filberts,^ but with respect to walnuts 
the Commission stated that it would make its 
report later in the marketing year when develop- 
ments in the trade had clarified sufficiently to 
enable the Commission to make a finding. The 
Commission has now reported to the President 
by letter dated February 24, 1955, that walnuts 
are not being imported and are not likely to be 
imported into the United States during the re- 
mainder of the 12-month period ending Septem- 
ber 30, 1955, under such conditions and in such 
quantities as to render or tend to render ineffec- 
tive or materially interfere witli any program 
undertaken by the U.S. Department of Agricul- 
ture with respect to walnuts, almonds, filberts, 
or pecans produced in the United States. 



Continuation of Rate of Duty 
on Imports of Hatters' Fur 

The President on March 24 concurred with the 
Tariff Commission's recent finding that no formal 
investigation should be instituted at this time to 
determine whether the tariff should be reduced on 
imports of hatters' fur.^ The President found, 
with the Tariff Commission, that there is no suffi- 
cient reason at this time to reopen the escape 
clause action which resulted in an increase of 
the duty on imports of hatters' fur. The Presi- 



' No. 3087 ; 20 Fed. Reg. 2009. 



' Copies of the Tariff Commission's letter to the 
President may be obtained from the U.S. Tariff Commis- 
sion, Washington 25, D.C. 

" For text of the proclamation issued by the President 
on the subject of import fees on almonds and filberts, see 
BuLi,ETiN of Nov. 1, 1954, p. 656. 

' Copies of the Tariff Commission's report may be ob- 
tained from the Commission. 



April 18, 1955 



657 



dent's decision means that the increased rate of 
duty wliich was established in 1952 as a result 
of escape clause action* will continue to apply 
without reduction or other modification. 

The President's action was taken after the 
views of all interested departments and agencies 
of the executive branch had been received and 
studied. The Tariff Commission's report was 
made pursuant to Executive Order 10401, which 
requires periodic review of actions taken under 
an escape clause. It was transmitted to the Presi- 
dent on February 4, 1955. 

The tariff on hatters' fur was reduced as the 
result of trade agreement negotiations in 1935 
and again in 1948. Effective February 9, 1952, 
the tariff on imports of hatters' fur was increased 
as the result of an escape clause action to its pres- 
ent rate of 47iA cents per pound but not less than 
15 percent nor more than 35 percent ad valorem. 

The Tariff' Commission's report constitutes its 
second periodic review of the escape clause action 
taken on this product. 



Director of Defense Mobilization 
To Advise on Buy American Act 

The White House announced on April 7 that the 
President had designated the Director of the Of- 
(ice of Defense Mobilization as the officer of the 
Government responsible for furnishing advice to 
executive agencies with respect to essential na- 
tional security interests that may be involved in 
applying the President's Executive order of De- 
cember 17, 1954, relating to the Buy American 
Act.= 

The President acted pursuant to section 3 (d ) of 
the Executive order which provides : 

Section 3. Nothing in this order shall alTect the author- 
ity or responsibility of an executive agency : 

(d) To reject any bid or offer for materials of foreign 
origin if such rejection is necessary to protect essential 
national-security interests after receiving advice with re- 
spect thereto from the President or from any oflicer of the 
Government designated by the President to furnish such 
advice. 



* Btn-LETiN of .Tan. 21, 19.")2 
' Thill., Jan. 10, 19r.5, p. .'■)0. 



p. 90. 



President's Memorandum 

Following is the text of a memorandum sent by 
the President to Arthur S. Flemming, present Di- 
rector of the Office of Defense Mobilization: 

Pursuant to Section 3 (d) of Executive Order 
10582, December 17, 1954, you are hereby desig- 
nated to furnish advice to Executive agencies with 
respect to the rejection of bids or offers to furnish 
materials of foreign origin upon the ground that 
such rejection is necessai-y to protect essential na- 
tional security interests. 

It is my conviction that exceptions under this 
provision of the Executive Order should be made 
only upon a clear showing that the paj'ment of a 
greater differential than the Order provides for is 
justified by considerations of national security. 
DwiGHT D. Eisenhower 



Current Legislation on Foreign Policy 
83d Congress, 2d Session 

International Operations of the U. S. Government in 
France, Spain, and Germany. Hearings before a Sub- 
committee of the House Committee on Government 
Operations. November 18-30, 19r)4. 204 pp. 

Budgetary and Financial Problems of the United Nations. 
Staff Study No. 6 of the Subcommittee on the United 
Nations Charter of the Senate Committee on Foreign 
Relations. Committee Print. December 1954. 33 pp. 

84th Congress, 1st Session 

Double Taxation Conventions with Japan and Belgium. 
Report to accompany Executives D, E, and G, 83d 
Cong., 2d Sess. S. Exec. Rept. 3, February 9, 1953. 11 pp. 

Trade Agreements Extension Act of 1955. Report of the 
House Committee on Ways and Means to accompany 
H. R. 1, a bill to extend the authority of the President 
to enter into trade agreements under section 350 of the 
Tariff Act of 1930, as amended, and for other purposes. 
H. Rept. 50, February 14, 1955. SG pp. 

Nomination of Julius C. Holmes. Hearing before the 
Senate Committee on Foreign Relations on the Nomina- 
tion of Julius C. Holmes To Be Ambassador to Iran. 
February 17, 1955. 15 pp. 

Authorizing the Committee on Foreign Affairs To Conduct 
a Full and Complete Invest igation of Matters Relating 
to Laws, Regulations, Directives, and Policies Including 
Personnel I'ertaining to the Department of State and 
Such Other Departments and Agencies Engaged Pri- 
marily in the Imiilementation of United States Foreign 
Policy and the Overseas Operations, Personnel and 
Facilities of Departments and Agencies of the United 
States Which I'articipate in the Develoimient and Exe- 
cution of Sucli Policy. Report to accompany U. Res. 91. 
H. Rept. 64, February 22, 1955. 2 pp. 



658 



Department of State Bulletin 



Egyptian-Israeli Dispute Before the Security Council 



The United Nations Security Council met on 
March 29 and 30 to discuss the Egyptian com- 
plaint concerning the Gaza incident of February 
28 and the Israeli countercomplaints} The com,- 
plaints had come iefore the Council on March Jj.; ^ 
071 March 17 Maj. Gen. E. L. M. Burns., Chief of 
Staff of the Truce Supervision Organization., had 
reported to the Council.^ 

On March 29 the Council unanimously approved 
a joint U.S. -U.K. -French draft resolution con- 
demning the attack hy Israeli military forces. 
The next day., also hy unanimous vote, the Council 
adopted a U.S. -U.K. -French proposal calling on 
Egypt and Israel to cooperate with the Chief of 
Staff to preserve security in the area. 

Following are statements made during the de- 
hate hy Henry Cabot Lodge, Jr., U.S. Representa- 
tive to the United Nations, together with texts of 
the resolutions. 



STATEMENT OF MARCH 29 

U.S./U.N. press release 2136 

On June 1, 1953, the U.S. Secretary of State had 
just returned from a 3-week tour of the Middle 
East and South Asia. Reporting to the Nation, 
he outlined the guiding principles which the 
United States would follow in dealing with this 
vast area of such great interest and importance to 
the rest of the world.^ 

In particular, he drew the attention of the 
American people to the problems of the Middle 
East which stood in the way of the well-being and 



' U.N. docs. S/3367 and S/3368. For an article dealing 
with the problems of Palestine and a map of the area, see 
Bulletin of Feb. 21, 1955, p. 301. 

' For a statement by Ambassador James J. Wadsworth 
at the Mar. 4 meeting, see U.S./U.N. press release 2123. 

' U.N. docs. S/3373 and S/PV.693. 

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



happiness of the great peoples of the area — 
peoples for whom we have a historic friendship 
and profound respect. 

Mr. Dulles pointed out that it was obvious that 
"we cannot ignore the fate of the peoples who have 
first perceived and then passed on to us the great 
spiritual truths from which our own society de- 
rives its inner strength." 

He then commented on the many problems which 
faced the various countries of the area. He noted 
the tremendous problems confronting Israel and 
the impressive work of the Israeli people in build- 
ing a new nation. He pointed out that in the 
aftermath of the Palestine war and the establish- 
ment of the new State, there remained, as he said, 
"closely huddled around Israel . . . over 800,000 
Arab refugees . . .," who existed mostly in make- 
shift camps, where, if something constructive were 
not done for them soon, they would rot away 
spiritually and physically. He pledged U.S. 
determination to avoid such a fate for so many 
thousands of human beings. 

Summing up these problems, Mr. Dulles stated, 

The United States should seek to allay the deep resent- 
ment against it that has resulted from the creation of 
Israel. . . . Today the Arab peoples are afraid that the 
United States will back the new State of Israel in aggres- 
sive expansion. . . . 

On the other hand, the Israeli fear that ultimately the 
Arabs may try to push them into the sea. 

Both these fears, he said, should be laid at rest. 
Referring to the Declaration of May 25, 1950, by 
the United States, Britain, and France,^ he stated 
that, should we find that any of the States of the 
Near East was preparing to violate frontiers or 
armistice lines, we would, consistent with our obli- 
gations as members of the United Nations, imme- 
diately take action both within and outside the 
United Nations to prevent such a violation. The 
Secretary of State added that it must be made clear 



'Ihid., June 15, 1953, p. 834, footnote 2. 



AprW 78, 1955 



659 



to all that the United States stands fully behind 
that declaration. 

He went on to say that leaders in Israel them- 
selves agreed with us that U.S. policies should be 
impartial, so as to win the respect and regard not 
only of the Israelis but also of the Arab peoples. 
Air. Dulles stated resolutely that we would seek 
such policies. Israel, he said, should become part 
of the Near East community and cease to look upon 
itself, or be looked upon by others, as alien to this 
■community. To achieve it would require con- 
ce.ssions on the part of both sides, but the gains to 
both would far outweigh the concessions required 
to win the gains. 

Recognizing that the parties concerned had the 
primary responsibility of bringing peace to the 
area, Mr. Dulles stated clearly that the United 
States would not hesitate by every appropriate 
means to use its influence to promote a step-by-step 
reduction of tension in the area and the conclusion 
of ultimate peace. 

It is because the present unhappy situation in 
Palestine must be viewed in its true perspective 
that I have referred at some length to the outlines 
of American policy set out almost 2 years ago by 
the Secretary of State. During the 2 years that 
have elapsed, the United States, both inside and 
outside the United Nations, had sought con- 
sistently to follow these objectives, and much 
progress had been made. We did not attempt to 
force an unwanted "blueprint" for peace on the 
peoples of the area. What we did, in close collabo- 
ration with other members of the Security Council 
and tlie United Nations, was to lend our assistance 
to the solution of specific problems which jeop- 
ardized the present well-being — in fact, the happi- 
ness and future — of Israelis and Arabs alike. 

Considerable progress had been made in the 
development of projects for the improvement of 
living conditions of the refugees, for the tapping 
of the water resources of the Jordan Valley to 
■develop new land and new industry, and for de- 
fense arrangements to which each nation could 
make its own contribution on a sovereign basis of 
equality. 

There was good reason to believe that, with 
significant progress already made, the time was 
not too distant when the intermittent lighting that 
characterized the situation on the borders of 
Israel and the Arab States would have become a 
thing of the past. 



We were particularly encouraged by the states- 
manlike approach to these border problems taken 
by the Chief of Staff of the United Nations Truce 
Supervision Organization, General Burns, and his 
predecessor. General Bennike. 

Of course, the United States was not satisfied as 
long as any disturbances occurred between Israel 
and her neighbors, but we were encouraged and 
hopeful that patience, understanding, and a real 
desire to put an end to hostility were begimiing 
to prevail. 

Into this comparatively hopeful situation, the 
terrible event at Gaza broke rudely. As a result 
of an action found by the Mixed Armistice Com- 
mission to have been a prearranged and planned 
attack, ordered by Israeli authorities and com- 
mitted by Israeli regular army forces, 38 
Egyptians were killed and 30 were wounded, with 
a loss to Israel itself of 8 Israeli soldiers killed 
and 15 wounded. This, as General Burns has 
stated, was the most serious clash of the two 
parties since the signing of the Armistice Agree- 
ment and came at a time, as he reported, of com- 
parative tranquility along the Armistice Demarca- 
tion Line. Yet Israel caused the loss of twice as 
many Israeli lives in the Gaza incident alone as 
had been lost in the previous 4 months as a result 
of border incidents. 

New incidents have occurred since the Gaza at- 
tack, with additional loss of life. Again, and 
most recently at Patesh, innocent persons have 
suffered. We express our great sympathy to their 
bereaved families. One can for the present con- 
jecture as to the immediate causal connection. As 
General Burns has pointed out in his report, in- 
filtration from Egyptian-controlled territory, 
while not the only cause of tension prior to the 
Gaza incident, has undoubtedly been one of its 
causes. But the Gaza incident has caused tension 
to mount on both sides, and is all the more to be 
deplored because deliberate. 

Yet a careful examination of each incident of 
infiltration will, I believe, demonstrate the truth 
of General Burns' statement that, if an honest 
attempt were made by both parties to work out 
border controls along the lines he has suggested, 
infiltration could he reduced to an occasional 
nuisance, which Israel, as he pointed out, must 
jn-obably regard as inevitable so long as 200,000 
poverty-stricken refugees live in the Gaza Strip 
along Israel's borders. 



660 



Deparfmenf of Sfate &{i\let\n 



Security Council Resolution 
on Gaza Incident 

D.N. doc. S/3378 dated Mar. 29 

The Security Council, 

Rccalliny its resolutions of 15 July 1948, 11 August 
1049, 17 November 1950, IS May 1951 and 25 No- 
vember 1953 ; 

Haviny heard the report of the Chief of Staff of 
the Truce Supervision Organization and statements 
by the Representatives of Egypt and Israel ; 

Noting that the Egyptian-Israeli Mixed Armistice 
Commission on 6 March 1955 determined that a 
"prearranged and planned attack ordered by Israeli 
authorities" was "committed by Israeli regular 
army forces against the Egyptian regular army 
force" in the Gaza Strip on February 2Sth, 1955 ; 

Condemns this attack as a violation of the cease- 
fire provisions of the Security Council resolution of 
15 July 1948 and as inconsistent with the obliga- 
tions of the parties under the General Armistice 
Agreement between Egypt and Israel and under the 
Charter ; 

Calls again upon Israel to take all necessary meas- 
ures to prevent such actions ; 

Expresses its conviction that the maintenance of 
the General Armistice Agreement is threatened by 
any deliberate violation of that Agreement by one 
of the parties to it, and that no progress towards 
the return of permanent peace in Palestine can be 
made unless the parties comply strictly with their 
obligations under the General Armistice Agreement 
and the cease-fire provisions of its resolution of 
July 15, 1948. 



One must conclude that the harsh treatment 
used to repulse infiltrators, whose apparent pur- 
poses are sometimes no more criminal than an 
attempt to gather grass on the other side of the 
border, is typical of the lack of restraint that has 
been exercised and which should be overcome at 
all costs. In this connection, we are impressed 
with General Burns' conclusion that, if such in- 
cidents were presented to the public in proportion 
to their intrinsic importance, the unfortunate 
tendency to demand retaliatory action could be 
restrained. 

We are aware that Israel holds that there are 
causes for the attack. We are aware that there 
have been provocations. They are not only al- 
ways to be regretted; they should also be pre- 
vented by all responsible authorities. As a sponsor 
of the resolution, however, the United States be- 
lieves that, whatever the provocation might have 
been in this case, there was no justification for the 



Israeli military action at Gaza. We have three 
times previously in this Council made the point 
clear either in resolutions or statements that 
Israel's retaliatory actions are inconsistent with 
its charter obligations. Now we have been faced 
with the fourth incident, and we believe it most 
serious because of its obvious premeditation. 

The conclusion which we draw from the report 
of the Chief of Staff and from the statements of 
the parties is that armed attack, planned and di- 
rected as it has been in this case, is no answer to 
the problems which rightly concern and distress 
the people of Israel. It is no service to them to 
increase internal tension, to bring the area to the 
brink of war, and to discourage and frustrate 
honest and sincere efforts to build a constructive 
peace. 

We must, therefore, and with regret, pause in 
the search for a solution to the serious problems 
of the area and, in effect, render a judgment on 
an act which we cannot condone. In so doing, our 
desire is to prevent a further deterioration in the 
relations between Egypt and Israel and to restore 
a needed balance of sanity before efforts can be 
hopefully renewed to solve the parties' outstand- 
ing problems in a spirit of justice and compassion. 

Such a judgment cannot honestly be looked 
upon as either punitive or ill-willed but as a nec- 
essary step in restoring perspective. It is for 
these reasons that we have joined with the United 
Kingdom and France in sponsoring the draft 
resolution submitted to this Council. 

We hope that with the adoption of this resolu- 
tion each side will consider well what it behooves 
them to do to insure to themselves a peaceful and 
prosperous future. We, for our part, will con- 
tinue our efforts here and in the area to help them 
achieve those goals. 



STATEMENT OF MARCH 30 

U.S./C.N. press release 2139 

The draft resolution sponsored by France, the 
United Kingdom, and the United States, which 
is the pending question today, represents an earnest 
desire on the part of our three Governments, and, 
we believe, on the part of the majority of this 
Council, to give every possible encouragement and 
assistance in preventing the recurrence of the un- 
fortunate events which have so alarmed us all. 



April 18, J 955 



661 



We believe that the machinery exists in the 
Truce Supervision Or<^anization under tlie author- 
ity of the Security Council to reduce border inci- 
dents to a manageable minimum, provided that 
the parties, with whom ultimate responsibility lies. 



Council's Appeal for Cooperation 
With TSO Chief of Staff 

U.N. doc. S/3379 dated Miir. ;iO 

The Security Council, 

Taking note of those sections of the report by the 
Chief of Staff of the TSO wiiich deal with the general 
conditions on the Armistice Demarcation Line be- 
tween Egypt and Israel, and the causes of the present 
tension ; 

Anxious that all possible steps shall be taken to 
preserve security in this area, within the framework 
of the General Armistice Agreement between Egypt 
and Israel ; 

Requests the Chief of Staff to continue his con- 
sultations with the Governments of Egypt and Israel 
with a view to the introduction of practical measures 
to that end ; 

Notes (hat the Chief of Staff has already made 
certain concrete proposals to this effect ; 

Calls upon the Governments of Egypt and Israel to 
co-operate with the Chief of Staff with regard to his 
proposals, bearing in mind that, in the opinion of the 
Chief of Staff, infiltration can be reduced to an oc- 
casional nuisance if an agreement were effected be- 
tween the parties on the lines he has proposetl ; 

Requests the Chief of Staff to keep the Council in- 
formed of the progress of his discussions. 



make an earnest endeavor to use this niacliiiiery to 
the full. After what has happened in the past 
few weeks, any further reluctance on the part of 
either of the parties to give the Truce Supervision 
Organization an honest chance to j^revent further 
disorders would to us be unthinkable. Such re- 
luctance would in fact call into (piestion their 
whole attitude toward the problems of border se- 
curity. It would be against their own interest and 
against the interest of peace and security for which 
we are all responsible. 

We do not believe that the Truce Supervision 
Organization has been given a fair chance to prove 
that the troubles which have occurred in the j^ast 
can be prevented. The parties have not, in our 
opinion, always shown their readiness to take all 
necessary measures and to cooperate fully with the 
Chief of Stall and the military observers. Tlie 
time has come when they must make a far greater 
effort. 



662 



It seems to us that the opportunity for this 
exists in the proposals which the Chief of Staff 
has already made and that this should be the first 
order of business in the area when this debate has 
concluded. 

The draft resolution, therefore, calls upon the 
Governments of Egypt and Israel to cooperate 
with the Chief of Staff with regard to his pro- 
posals. In his opinion, they can reduce the se- 
rious problem of infiltration (which he considers 
one of the causes of tensions and which we — as we 
have said several times already — wish to see com- 
pletely eliminated) to an occasional nuisance. 
The Security Council members will recall that 
General Burns' proposals were : 

(a) that joint patrols of Egyptian and Israeli 
forces be instituted along sensitive sections of the 
Demarcation Line; 

(b) that the parties negotiate a Local Com- 
manders' Agreement for immediately dealing on 
the spot with border problems ; 

(c) that a barbed-wire obstacle be placed along 
certain portions of the Demarcation Line; and 

(d) that all outposts and patrols be manned by 
regular Egyptian and Israeli troops. 

It is the purpose of our proposed draft resolu- 
tion to give full support to General Burns' recom- 
mendations. In our opinion, agreement along 
these lines will have the effect of producing order- 
ly, disciplined cooperation in preventing further 
incidents. Such cooperation should produce a 
sense of security on both sides, prevent such trag- 
edies as the Gaza attack, and put the problem of 
infiltration into proper perspective. 

The Chief of Staff will be returning shortly to 
the area, and we hope that no time will be lost 
in working out his proposals, so that they can im- 
mediately be put into effect, and in consulting 
further with respect to additional practical meas- 
ures. The pending draft resolution reciuests the 
Chief of Staff to continue his consultations with 
Egj'pt and Israel to work out such additional prac- 
tical measures. 

These, Mr. Chairman, are the purposes of the 
draft resolution that we have joined in introduc- 
ing. They are based on the conviction that what 
the Chief of Staff has said concerning the probable 
effectiveness of his suggestions is true, if an earnest 
effort is made to work them out. They are based 
on the conclusion that there should be no hesita- 



Department of State Bulleti 



■> 



tion on either side in getting to work with him 
to produce this result. 

We commend this approach to the members of 
the Security Council and to the parties and trust 
that their response will be prompt and eif ective. 



\/alue of United Nations 
Technical Assistance Program 

Statement hy Henry Cabot Lodge, Jr} 

This is testimony in support of the President's 
request for a supplemental appropriation of $8 
million for a U.S. contribution to the United Na- 
tions Technical Assistance Program for the first 
half of the calendar year. I do not appear as an 
LAxpert on U.N. technical assistance operations — 
which I have never inspected. I believe it is 
well managed, but State Department officials can 
^ive direct testimony on this point. 

My testimony is on the significance of this pro- 
gram to our overall foreign policy in the cold 
war. 

^ly knowledge of its value is primarily derived 
from conversations with the representatives of 
the recipient governments at the United Nations. 
They attach great importance to it. The repre- 
sentatives of the less developed countries in Latin 
America, Southeast Asia, the Near East, and the 
Far East have particularly and often expressed 
their appreciation for the contribution which the 
United States is making to this program and for 
the help which this has been in staving off Com- 
niuiiist penetration. 

I lere are some reasons why the United States 
sliuuld support this program: 

( 1) Our contribution gets particular attention 
and appreciation because of being made under 
U.N. auspices (on which the eyes of the world 
are often focused). The charge that technical 
assistance is a cover for U.S. imperialism — which 
is always untrue — cannot be made with even re- 
mote plausibility about a progi-am operating under 
the aegis of the United Nations. 

(2) This method of handling technical assist- 
ance is also particularly advantageous to us be- 
cause so many other countries are in on it too. 
It therefore does not provoke the envy and the 



' Made before the Senate -Appropriations Committee 
on Mar. 28. 



sense of being patronized which often — however 
unjustly — goes to him who dispenses favors 
singlehandedly or on a purely bilateral basis. 

Those are two features which distinguish this 
program from bilateral technical assistance. 

Yet a third is due to the fact that the United 
States has in the past been a leader in providing 
this type of technical assistance to underdeveloped 
countries. Programs of technical assistance were 
initiated by the United States before World War 
II in Latin America and received impetus dur- 
ing the war under the leadership of Nelson Eocke- 
feller. As a result of this experience some Latin 
American representatives in the United Nations 
worked with the U.S. representatives just after 
the war to develop this U.N. program. This ac- 
tive U.S. participation in the program has been 
steadily maintained. To abandon this now would 
hurt us and thus help our adversaries. 

This program provides a significant amount of 
technical assistance which, like our own bilateral 
technical assistance, helps the underdeveloped 
countries to solve their economic and health prob- 
lems by their own efforts. It is well said that "a 
hungry man is more interested in four sandwiches 
than he is in four freedoms." Before we can even 
think of certain countries becoming dependable 
allies there must be at least a minimum standard 
of living and standard of health. 

This program has about 700 projects in 84 coun- 
tries and dependent overseas territories. It there- 
fore must be planned more than 12 months in ad- 
vance. It is impossible to make reliable plans 
when the amount of the U.S. contribution, which 
in 1954 was 55 percent of total pledges for that 
year, is uncertain. As things now stand, because 
of the very understandable reluctance of Congress 
to have the Administration make an additional 
pledge until the funds have actually been appro- 
priated, the program is both without U.S. funds 
and without a pledge. It is, therefore, not only 
necessary to provide the funds which the Admin- 
istration requests ; it is important that our willing- 
ness to do so be clearly expressed in time for 
intelligent planning to take place. Otherwise 
there is bound to be effort not applied with maxi- 
mum effectiveness. 

Let me speak now of Soviet participation. For 
many years the Soviet Union did not participate. 
One of my first acts as U.S. Eepresentative in early 
1953 was to call attention to the contrast between 



AptU 18, 7955 



663 



the Soviet failure to participate in this program 
and tiieir self-righteous propaganda shedding 
crocodile tears for the underdeveloped countries 
for whom they were doing nothing.^ Some time 
later the Soviets evidently felt compelled to par- 
ticipate. They made an annual contribution of 
4 million rubles (the equivalent of $1 million) for 
the years 1953 and 1954 and have pledged a simi- 
lar amount for 1955. Because of lack of interest 
on the part of other countries, these rubles have 
not been used to date, although there is, I believe, 
a plan now to provide some machinery and equip- 
ment and a few experts to interested countries 
from their contribution. 

I^t me declare at this point that no U.S. funds 
will be used imder the program to pay for a single 
Soviet expert or Soviet piece of equipment. 

The Soviet Union has, of course, a right to enter 
the program, and even if the program did not 
exist the Soviet Union could engage in bilateral 
programs of its own. Remember that we can do 
a better job at this kind of thing than the Soviet 
Union can and that it helps us for people to be 
able to compare U.S. and U.S.S.R. performances 
and then judge for themselves. This program can 
be a fine "showcase" for the United States — for 
our equipment and for our human beings, such as 
doctors, engineers, etc. 

The Soviets do not — and cannot— control the 
program. The principal control is in the Secre- 
tary-General and the heads of the specialized agen- 
cies, 4 out of 10 of whom are U.S. nationals and 
none of whom are Soviet satellites. There is also 
an intergovernmental body which is responsible 
for reviewing the technical assistance activities of 
all the specialized agencies, and in this agency the 
Soviets control 2 votes out of 18. The Soviets, of 
course, do not have the veto in any U.N. body ad- 
ministering technical assistance. This sum of $8 
million, while not sacred, does represent what is 
believed to be a fair contribution by the United 
States for the first half of this calendar year to 
the total U.N. program at this stage of its develop- 
ment. I hope that gradually over a period of 
years it will be possible to reduce the U.S. per- 
centage as the underdeveloped countries get into 
a better economic position and become more able 
to carry their share. 

The House has reduced the amount requested 



' Bulletin of Mar. 9, 19M, p. 384. 
664 



by the Administration for the first half of 1955 m 
from $8 million to $4 million. To fail to provide 
the full $8 million requested will, I fear, be taken ' 
as a marked lack of interest on the part of the^ 
United States in the welfare of peoples and gov- 
ernments who like to stand with the United States. 

The United Nations Technical Assistance Pro- 
gram should be enabled to continue as planned fop 
this year. The percentage of the U.S. contriba 
tion has already been slightly reduced. To cub 
the program below the present level through a 
reduction in the U.S. dollar contribution would 
hurt the United States and would, to that extent, 
actually help the Soviet Union by increasing their 
opportunities to operate in underdeveloped coun- 
tries, certain of which might waver under Soviet 
pressure if they saw that we were no longer in- 
terested. It would not be surprising if in such a 
situation the Soviet Union decided to increase 
their contribution to fill the amount left vacani 
by the United States. 

To sum up: I urge favorable consideration oJ 
the request for a contribution of $8 million to thit 
program for the first half of this calendar ye; 
because it will further strengthen our ties wi 
underdeveloped countries all over the world am 
because failure to do so would unquestionably re 
resent substantial gain of Soviet influence 
underdeveloped countries, many of which havi 
gi'eat potentiality for the future and which at hearl« 
want to be on our side. 

We must recognize as prudent men that, witl: 
the world rent asunder by the cold war, we cannol'i 
walk out of any of the international activities ir 
which we have been participating, leaving the fieldt 
to the Soviet Union. I say this regardless of how I 
much some of these activities may irritate us— 
and I know that some of them have irritated me 
The moment we left the international activity ir 
question the Soviet Union would take over anc 
turn it into an engine directed against us. 

Some international activities are better thar 
others. This U.N. technical assistance which H 
have talked about today is good. But the Unitecll( 
States in the present struggle between communisnc 
and freedom cannot even walk out of the mediocre 
ones, because every international activity is a po- 
tential or actual arena in which to fight the cole 
war, and we must not walk off and leave anj 
battlefield to our adversary — both in our own best 
interests and in that of freedom-loving liumanitj 
in other countries who are at heart on our side. 

DepartmenI of State Bulletin 



I. S. Comments to U. N. on Study 
f Restrictive Business Practices 

S./U.N. press release 2134 dated March 28 

Following is the text of a note transmitted by 
he Representative of the United States to the 
^nited Natiorus to the U.N. Secretary -General. 

The Government of the United States is appre- 
lative of the study which has been given by the 
'nited Nations to the problem of restrictive busi- 
ess practices and the efforts which have been 
lade to develop proposals for international co- 
peration. The United States has been, and 
Dntinues to be, strongly mindful of the vital im- 
ortance of this problem in terms of the objectives 
f expanding production and trade, promoting 
conomic development, and increasing standards 
f living. 

The United States Government has given care- 
ul and extensive consideration to the proposals of 
he Ad Hoc Committee on Restrictive Business 
'ractices. In doing so, it has evaluated the Com- 
mittee's proposals in the light of whether they 
could be effective in eliminating restrictive busi- 
less practices which interfere with international 
rade. It has noted the substantial differences 
vhich presently exist in national policies and prac- 
ices in this field and it has been drawn to the con- 
:lusion that these differences are of such magni- 
ude that the proposed international agreement 
vould be neither satisfactory nor effective in ac- 
;oniplishing this purpose. 

In order to reconxmend action against cartel 
)r;iftices, the proposed international body would 
38 required not only to find that such practices 
>xi?t but that they have harmful effects on pro- 
duction or trade in the light of very general 
criteria. This latter determination would be ex- 
:remely difficult for a body of governmental 
representatives to make in the light of the sub- 
tantial divergences in approach previously re- 
ferred to, and, in the opinion of the United States 
Government, would likely result in the condoning 
of restrictive practices or in no agreement by the 
international body on the disposition of complaints 
brought before it. In addition, since action under 
the proposed agreement would be primarily a 
matter of enforcement procedures under national 
laws, the present stage of development of national 
legislation offers little hope that recommendations 
of the international body could be effectively 



carried out. '\^^lile encouraged by the progress 
which has been made in recent years in this field, 
the United States does not feel that the point has 
been reached at which a broad international ar- 
rangement of the type proposed by the Committee 
could be successfully implemented. 

The elimination of harmful restraints on inter- 
national trade and the furthering of the develop- 
ment of free competitive enterprise continue to be 
basic objectives of this country's economic policy. 
In the present circumstances, however, the en- 
deavor to effectuate a plan of international co- 
operation along the lines envisaged by the current 
projiosals might well prejudice rather than pro- 
mote the attainment of these objectives. 

It is therefore the opinion of the United States 
Government that present emphasis should be 
given not to international organizational ma- 
chinery but rather to the more fundamental need 
of further developing effective national programs 
to deal with restrictive business practices, and of 
achieving a greater degi-ee of comparability in the 
policies and practices of all nations in their 
approach to the subject. 

The reports submitted by the Ad Hoc Com- 
mittee^ and the Secretariat^ are, in the view of 
the United States, valuable for analysis of the 
problem of restrictive business practices. The 
subject merits full and continuing examination by 
all nations with a view to meeting the funda- 
mental need cited above. 



Tax Conventions With Japan 
Enter Into Force 

Press release 180 dated April 1 

On April 1, 1955, the two tax conventions of 
April 16, 1954, between the United States and 
Japan (conventions for the avoidance of double 
taxation and the prevention of fiscal evasion, one 
with respect to taxes on income and the other with 
respect to taxes on estates, inheritances, and gifts) ^ 
were brought into force by the exchange of instru- 
ments of ratification at Tokyo. 

The convention relating to taxes on income is 
applicable to income or profits derived during 



" U. N. docs. E/2.379 and Adds. 1 and 2 ; E/23S0. 
' V. N. docs. E/2612 and Add. 1, 2671, and 2675. 
' Bulletin of May 3, 19.54, p. 692. 



April 18, 1955 



665 



taxable years beginning on or after January 1, 
1955. The convention relating to taxes on estates, 
inheritances, and gifts is applicable to estates or 
inheritances in the case of persons who die on or 
after April 1, 1955, and to gifts made on or after 
April 1, 1955. 

The provisions of the convention follow, in gen- 
eral, the pattern of tax conventions in force be- 
tween the United States and a number of other 
countries. The conventions are designed, in the 
one case, to remove an undesirable impediment to 
international trade and economic development by 
doing away as far as possible with double taxation 
on the same income, and in the other case, to elimi- 
nate double taxation in connection with the settle- 
ment in one country of estates in which nationals 
of the other country have interests or in connection 
with the making of gifts. 

So far as the United States is concerned, the 
conventions apply only with respect to U.S. (that 
is, Federal) taxes. They do not apply to the im- 
position of taxes by the several States, the District 
of Cohimbia, or the Territories or possessions of 
the United States. 



Current Treaty Actions 

MULTILATERAL 

Commodities — Sugar 

International sugar agreement. Done at London under 
date of October 1, 1953. Entered into force May 5, 1954. 
Proclaimed by the President: April 4, 1955. 

Copyrights 

Universal copyrifilit convention and protocol annexed 
thereto concerning the application of the convention to 
the works of certain international organizations. Done 
at Geneva September 6, 1952.' 
Ratification deposited: Spain, October 27, 1954. 

Defense 

Inter- American Treaty of Reciprocal Assistance. Opened 
for signature at Kio de Janeiro September 2, 1947. En- 
tered into force DiK-ember 3, 1948. TIAS 1838. 
Ratification deposited (with reservation) : Guatemala, 
April 6, 1955. 

Germany 

I'nitoeol to the North Atlantic Treaty on the accession of 
the Federal IJepublic of Germany. Signed at Paris Octo- 
ber 23, 1954.' 



' Not in force. 

'Not in force; for entry-into-force provisions, see Bui,- 

rriN of Nov. 15, 1954, p. 751. 



LETIN 



666 



Senate advice and consent to ratification given: April 

1, 1955. 
Ratified by the President: April 7, 1955. 

Protocol on the termination of the occupation regime In 
the Federal Republic of Germany, with five schedules, 
and related letters. Signed at Paris October 23, 1945, by 
the United States, France, the Federal Republic, and the 
United Kingdom." 
Senate advice and consent to ratification given: April 

1, 1955. 
Ratified by the President: April 7, 1955. 

Convention on the presence of foreign forces in the Fed- 
eral Republic of Germany. Signed at Paris October 23, 
1954.' 
Approved by the President : April 7, 1955. 

Organization of American States 

Charter of the Organization of American States. Signedh 
at lidgotil April 30, 1948. Entered Into force December 
13, 1951. TIAS 2361. 

Ratification deposited (with reservation) : Guatemala, 
April 6, 1955. 



BILATERAL 

Chile 

.\greement providing for an educational exchange pro- 
gram. Signed at Santiago March 31, 1955. Entered* 
into force March 31, 1955. 

China 

JIutual defense treaty. Signed at Washington December 
2, 1954. Entered into force March 3, 1955. 
Proclaimed by the President: April 1, 1955. 

Ecuador 

Agreement providing for investment guaranties author- 
ized by section 413 (b) (4) of the Mutual Security Act 
of 1954. Effected by exchange of notes at Washington 
March 28 and 29, 1955. Entered into force March 29, 
1955. 

El'Salvador 

Agreement for a cooperative progi-am of agricultural de- 
velopment, pursuant to the general agreement for tech- 
nical cooperation of April 4, 1952 (TIAS 2527). Signed 
at San Salvador March 21, 1955. 

Entered into force: April 1, 1955 (the date El Salvador 
notified the United States of its ratification). 

Honduras 

Agreement relating to duty-free entry and defrayment of 
inland transportation charges for relief supplies and 
packages. Effected by exchange of notes at Tegucigalpa 
March 21, 1955. Entered Into force March 21, 1955. 

Japan 

Convention for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
estates, inheritances and gifts. Signed at Washington 
April 16, 1954. Ratified by the President March 7, 1955. 
Entered into force: April 1, 1955 (the date of exchange 
of instruments of ratification). 

Convention for the avoidance of double taxation and the 
I)revention of fiscal evasion with respect to taxes on 
income, with a related exchange of notes. Signed at 
Wasliington April 16, 1954. Ratified by the I'resident 
March 7, 1955. 

Entered into force: April 1, 1055 (the date of exchange 
of instruments of ratification). 



Deparfmenf of State Bulletin 



Vpril 18, 1955 



\merican Eepublics. Inter-American Commission of 
Women To Meet in Puerto Rico 

Antarctica. Plans tor Antarctic Expedition 

\nstria. Views of U.S., U.K., and France on Austrian 
State Treaty (text of tripartite declaration) . . . 

Aviation. International Considerations of a Modern Air 
Logistics System (Barringer) 



speets of War or Peace in the Formosa Area (Dulles) 
ge in Red China (Dulles) 



congress. The 

i.'iHTL'nt Legislation 

Value of United Nations Technical Assistance Program 

(Lodge) 

Czechoslovakia. Proceedings Against Czechoslovakia in 
1953 Plane Case (text of application to ICJ) . . . 
Economic Aflfairs 
firl.'sation of Authority for Administering Commodity 

Set-Aside (text of Executive order) 

IM rector of Defense Mobilization To Advise on Buy- 
American Act (text of memorandum) 

M.Hliiieation of Restrictions on Imports of Peanuts (text 

of proclamation) 

I'nsident's Decisions on Tariff Commission's Findings 

(walnuts, hatters' fur) 

I'.S. Comments to U.N. on Study of Restrictive Business 

Practices (text of note) 

WurUl Trade Week, 1955 (text of proclamation) .... 

Egypt. Egyptian-Israeli Dispute Before the Security 

Council (statements and texts of resolutions) . . . 

Enrope. Possibilities for Meeting of Big Four Foreign 

Ministers (Dulles) 

Foreign Service. The Foreign Service as a Career (Hen- 
derson) 

France. Views of U.S., U.K., and France on Austrian 
State Treaty (text of tripartite declaration) . . . 
Germany. Increased Road Tolls in East Zone of Ger- 
many (Conant) 

India. FOA Announces Loan to India for Development 

Assistance 

International Organizations and Meetings. Inter-American 
Commission of Women To Meet in Puerto Rico . . . 
Israel. Egyptian-Israeli Dispute Before the Security 
Council (statements and texts of resolutions) . . . 
Japan. Tax Conventions With Japan Enter Into Force . 
Military Affairs 
Award of Legion of Merit to Foreign Military Personnel 

(text of Executive order) 

Director of Defense Mobilization To Advise on Buy-Ameri- 
can Act (text of memorandum) 

International Considerations of a Modern Air Logistics 

System (Barringer) 

Plans for Antarctic Expedition 

Mutual Security 

FOA Announces Loan to India for Development Assist- 
ance 

Prospects of War or Peace in the Formosa Area (Dulles) . 
$20 Million Loan to Pakistan for Defense Support . . . 
Value of United Nations Technical Assistance Program 

(Lodge) 

Near East. Egyptian-Israeli Dispute Before the Security 
Council (statements and texts of resolution) . . . 
Pakistan. $20 Million Loan to Pakistan for Defense Sup- 
port 

Presidential Documents 

Award of Legion of Merit to Foreign Military Personnel . 

Delegation of Authority for Administering Commodity 

Set-Aside 

Director of Defense Mobilization To Advise on Buy- 
American Act 

Modification of Restrictions on Imports of Peanuts . . 
President's Decisions on Tariff Commission's Findings 
(walnuts, hatters' fur) 



Ind 

651 
644 

647 

645 

643 

642 

658 
663 

64S 

655 

658 

656 

657 

663 
657 

659 

641 

635 

647 

648 

654 

651 

659 
665 

650 

658 

645 
644 

654 
643 
654 

663 

659 

654 

650 

655 

658 
656 



ex 



Vol. XXXII, No. 825 



Resignation of Sir Winston Churchill and Naming of Sir 

Anthony Eden 640 

United Nations Day, 1955 651 

World Trade Week, 1955 657 

Protection of U.S. Nationals and Property. Proceedings 
Against Czechoslovakia in 1953 Plane Case (text of 

application to ICJ) 648 

Refugees and Displaced Persons. The United Nations Refu- 
gee Program (Phillips) 652 

Treaty Information 

Current Actions 666 

Tax Conventions With Japan Enter Into Force .... 665 

United Kingdom 

Resignation of Sir Winston Churchill and Naming of Sir 

Anthony Eden (Eisenhower, Dulles) 640 

Views of U.S., U.K., and France on Austrian State Treaty 

(text of tripartite declaration) 647 

United Nations 

Egyptian-Israeli Dispute Before the Security Council 

(statements and texts of resolutions) 659 

Proceedings Against Czechoslovakia in 1953 Plane Case 

(text of application to ICJ) 648 

United Nations Day, 1955 (Eisenhower) 651 

The United Nations Refugee Program (Phillips) .... 652 
U.S. Comments to U.N. on Study of Restrictive Business 

Practices (text of note) 665 

Value of United Nations Technical Assistance Program 

(Lodge) 663 

Name Index 

Barringer, J. Paul 645 

Byrd, Richard E 644 

Churchill, Winston 640 

Conant, James B 648 

Dufek, George 644 

Dulles, Secretary 640, 641, 642, 643 

Eden, Anthony 640 

Eisenhower, President .... 640, 650, 651, 655, 656, 657, 658 

Flemming, Arthur S 658 

Henderson, Loy W 635 

Lodge, Henry Cabot, Jr 659, 663 

Phillips, Christopher H 652 

Phleger, Herman 649 



Check List of Department of State 
Press Releases: April 4-10 

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

Press releases issued prior to April 4 which 
appear in this issue of the Bulletin are Nos. 180 
of April 1 and 181 of April 2. 

No. Date Subject 

tlS3 4/4 Patterson : "International Cooperation 

To Harness the Atom for Peace." 

*1S4 4/4 Educational exchange. 

tlS.") 4/5 Dulles: 6th anniversary of NATO. 

186 4/5 Dulles : Churchill retirement. 

187 4/5 Tripartite declaration on Austria. 

188 4/5 Dulles : Foreign Ministers' meeting. 

189 4/5 Dulles: purge in Red China. 

190 4/5 Dulles: war or peace in Formosa area. 

191 4/5 F-84 case in ICJ. 

192 4/6 Dulles: Eden appointment. 
*193 4/6 Educational exchange. 
"'194 4/6 Educational exchange. 
*195 4/8 Educational exchange. 

■►196 4/8 Statement on Edward R. Corsi. 



■"Not printed. 

tHeld for a later issue of the Bdixetiw. 





United States 
Government Printing Office 

DIVISION OF PUBLIC DOCUMENTS 

Washington 25, D. C. 

OFFICIAL BUSINESS 



PENALTY FOR PRIVATE USE TO AVOID 
PAYMENT OF POSTAGE. »300 

(GPO) 



New Opportunities 

in the U.S. Foreign Service 



Publication 5748 



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An exceptional opportunity exists at this time for young 
American men and women to become officers in the Foreign 
Service of the United States. This opportunity is due primarily 
to the reorganization directed by the Secretary of State on the 
recommendation of his Public Committee on Personnel. 

A recent pamphlet entitled New Opportunities in the U.S. 
Foreign Service tells of the work and training of the Foreign 
Service officer, and life in the Service. Classes, pay, promotion, 
allowances, and other benefits are also discussed, and the proc- 
ess of becoming a Foreign Service officer is explained. A 
section on the examination is included in the pamphlet. 

Applicants for the U.S. Foreign Service must be at least 
20 and under 31 years of age, and have been an American 
citizen for at least 10 years. If married, the candidate must 
be married to an American citizen. 

Ne2v Opportunities in the U.S. Foreign Service is available 
from the Superintendent of Documents, U.S. Government 
Printing Office, Washington 25, D. C, for 15 cents a copy. 



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d. XXXII, No. 826 
April 25, 1955 




"-*TES O* 



BENEFITS TO THE UNITED STATES OF PARTICI- 
PATION IN PROPOSED ORGANIZATION FOR 

TRADE COOPERATION • Message of the President 

to the Congress 678 

PRINCIPLES IN FOREIGN POLICY • Address by 

Secretary Dulles 671 

WHAT NATO MEANS TO AMERICANS • by 

Ambassador George W. Perkins 681 

AGREEMENT FOR NATO COOPERATION ON 

ATOMIC INFORMATION 686 

INTERNATIONAL COOPERATION TO HARNESS THE 

ATOM FOR PEACE • by Morehead Patterson .... 690 

PROBLEMS OF ADMINISTERING EAST AFRICAN 

TRUST TERRITORIES • Statements by Mason Sears . 703 



For index see inside back cover 



Boston Public Lilirary 
Superintendent of Dociitnonto 

MAY 1 8 1955 




U 11 f 



Vol. XXXII, No. 826 • Publication 5828 
April 25, 1955 



For sale by the Superintendent of Documents 

U.S. Oovemment PrlntlDR ODlce 

Washington 25, D.C. 

Price: 

62 Issues, domestic $7.60, torelpi $10.26 

Single copy, 20 cents 

The printing of this publication has 
been approved by the Director of the 
Bureau of the Budget (January 19, 1955). 

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



The Department of State BULLETIN, 
a treekly publication issued by the 
Public Services Division, provides the 
public and interested agencies of 
the Government tcith information on 
developments in the field of foreign 
relations and on the u^ork 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 Slate and other 
officers of the Department, as tcell as 
special articles on I'arioiis phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreements to 
tchich the United States is or may 
become a party and treaties of gen- 
eral international interest. 

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



Principles in Foreign Policy 

Address by Secretary Dulles ^ 



This is a gathering of learned persons. It is an 
occasion when it may be permissible to talk in 
terms of general principles. That, I can assure 
you, is not a purely academic exercise. National 
action should always reflect principles. There- 
fore, those who have responsibility for action have 
also a responsibility to assure that what they do 
represents something more than immediate politi- 
cal expediency. 

However, the guides to conduct are not always 
clear and simple. Often, indeed, they seem to 
conflict. Perhaps it will be of interest if I indi- 
cate some of the problems which confront those 
who try to find, in morality and in reason, a com- 
pass to direct their course. 

iPeace vs. Liberty 

Let me mention, as a first problem, that of peace 
vs. liberty. 

Peace is a goal which men have always sought. 
It is a goal which we particularly think of at tliis 
Easter season when we commemorate the resur- 
rection of the Prince of Peace. 

It is difficult to exaggerate the horrors of war or 
the longing of humanity for peace. Wars used to 
be limited in their scope, and they were regulated 
so as to spare civilians from most of their dire 
consequences. I myself can think back to the days 
when private property was immune from seizure 
in time of war; when interruption of trade was 
limited to particular ports which were closely 
blockaded or to contraband of war, by which was 
meant the actual tools of war. 

As a youth, I attended the second Hague Peace 
Conference of 1907, which drew up protocols de- 
signed to prevent the use in war of the new scien- 
tific developments of that time. It was, for ex- 
ample, Sought to forbid the dropping of explo- 
sives from balloons. 



' Made before the Fifth Annual All-Jesuit Alumni Din- 
ner at Washington, D. 0., on Apr. 11 (press release 203). 



The First and Second World Wars showed that 
modern war is "total" war and that it is whole 
peoples, rather than the military, who suffer its 
cruel effects. Furthermore, we know that war 
more than ever involves compulsory enmity, out- 
rages against the human personality, cruelty, 
vengef ulness, and wanton distortions of the truth. 

Today throughout the world there is a rising 
demand for protection against the misery, the 
agony of body and of spirit, the massive destruc- 
tion of life and of property which modern war 
wreaks upon man. 

There is, however, another aspect of the matter. 
Peace can be a cover whereby evil men can per- 
petrate diabolical wrongs. 

During recent years the Communist rulers, 
through their propaganda, have sought to capi- 
talize on love of peace and horror of war as a 
means of extending their rule over all the human 
race. Through such propaganda efforts as the 
the Stockholm "Peace" Appeal, they have tried 
to divert the peoples of the free world from neces- 
sary measures of defense and create throughout 
the free world a popular demand for peace at any 
price. 

Crafty scheming underlies that planning. The 
Communist leaders know that, if pacifism be- 
comes a prevalent mood among the free peoples, 
the Communists can easily conquer the world. 
Then they can confront the free peoples with suc- 
cessive choices between peace and surrender ; and 
if peace is the absolute goal, then surrenders be- 
come inevitable. 

In this connection we should remember that 
while modern developments have made war more 
terrible, they have also made the consequences of 
retreat and surrender more terrible. Modern war 
could now destroy much of the life on this planet. 
But also it may be possible that craven purchase 
of peace at the expense of principle can result in 
destroying much of the human spirit on this 
planet. Peace, under certain conditions, could 



AprW 25, 1955 



671 



lead to a degradation of tlie hiinian race and to 
subjecting human beings to a form of mental decay 
which obliterates the capacity for moral and in- 
tellectual judgment. 

We know, in individual cases, the effects of 
brainwashing. It leads men to repudiate their 
cherished beliefs and to accept as fact what, if they 
were sane, they would know to be false. Not in- 
frequently those who have been brainwashed come 
sincerely to believe that they committed acts else- 
where than where they physically were at the 
time. 

There are now techniques which make it pos- 
sible to alter profoundly the human spirit. Fur- 
thermore, this can be done on a mass scale. Cer- 
tain falsehoods are incessantly pounded, without 
respite, into the consciousness of those whose 
minds are terrorized, whose spirits are dis- 
heartened, and whose bodies are weakened from 
malnutrition. In the end the peoples become 
abnormal. 

One cannot but shrink from buying peace at the 
price of extending over human beings the rule 
of those who believe that men are in fact nothing 
more than animated bits of matter and that, to 
insure harmony and conformity, they should be 
deprived of the capacity for moral and intellectual 
judgment. Man, we read in the Holy Scriptures, 
was made a little lower than the angels. Should 
man now be made little, if any, higher than do- 
mesticated animals which serve the purposes of 
their human masters? 

So men face the great dilemma of when and 
whether to use force to resist aggression which 
imposes conditions which violate the moral law 
and the concept that man has his origin and his 
destiny in God. 

Maps vs. People 

AnotluT dilemma which we face is that which 
I might call the dilemma of maps vs. people. 

Maps have an extraordinary fascination and a 
profound influence. They provide a temptation 
to seize as solutions what are not real solutions. 

Up until a few years ago, the American people 
were educated in terms of maps of Mercator's pro- 
jection. They showed the North American Cont i- 
nent isolated from the rest of the world by the ex- 
panse of great oceans. George Washington, in 
his Farewell Address, spoke of "our detached and 
distant situation." That concept, originally valid, 



has dominated the greater i>art of our national 
life. 

Now we face a world in which air is the means 
of conununication. But air cannot be portrayed 
by maps alone. It is an invisible envelope that 
enfolds the earth without a break. So maps now 
need the supplement of an intelligent imagina- 
tion. Some help can be got from polar maps. 
They help to teach that under modern conditions 
of communication areas wliich used to seem re- 
mote are in fact near. 

Under present circumstances, divisions of land 
and water, of desert and mountain range, of river 
and of plain, have lost much of their significance. 
More than ever before, the human family has be- 
come one. 

Nevertheless, it is still necessary to draw lines. 
There are national lines, which have a meaning. 
But even national lines do not have an unchanging 
meaning. That is well illustrated by Europe. A 
map of Europe today looks as it did a few weeks 
ago. But, in fact, in Western Europe an immense 
change is in process. It means that while nation- 
alities will still exist, there will be cooperation so 
that the boundary lines will have lost much of 
their former forbidding significance. A new 
Western Europe is being born, and maps cannot 
reflect the ending of age-old rivalries. 

In Korea the 38tli parallel became famous as a 
line between the free and Communist-dominated 
parts of Korea. But the line did not demarcate 
the hopes and aspirations of the people. I recall 
being in Korea in June 1950 and addressing at 
Seoul a religious gathering of thousands of ref- 
ugees. They had fled from the north and crossed 
the parallel to the south in the hope of finding the 
freedom of religion which they cherished. 

In Viet-Nam a line was drawn at the 17th paral- 
lel. But hundreds of thousands of refugees have 
crossed it, fleeing to the south. Again the di-iving 
force was a longing for religious freedom. 

And there is this to be remembered : For each 
pei-son who succeeds in becoming a refugee from 
communism, there are many more who do not want 
to be contained by the lines which statesmen have 
drawn in the hope that that would solve their 
problems. 

In the world today, with air the means of com- 
munication, with time and space almost annihi- 
lated, geography still remains a fact. But geo- 
graphical solutions I'arely coincide with human 



672 



Department of State Bulletin 



solutions. That is why we do not accept the 
finality of a divided world. 

The Part vs. the Entire Story 

Another dilemma that we face might be de- 
scribed as that of the part vs. the entire story. 

It is almost always easy to find a solution if only 
part of a problem is known. It is my experience 
that those who are most positive about political 
problems are able to be positive only because they 
do not know all the relevant facts. Those who 
are most harsh in their judgments are able to be 
harsh for that same reason. When the whole of a 
problem is known, solutions become excessively 
difficult and judgments are not easily made. Tol- 
erance has become a vital need. 

There is hardly any international problem 
which lends itself to easy or sure solution. Those 
who principally know Europe readily judge that 
the problems of Asia are unimportant and that 
almost any solution will serve so long as it does not 
trouble Europe. Those who are principally con- 
cerned with Asia are sometimes annoyed if it is 
suggested that Asian problems cannot be solved 
without regard for Europe. 

The fact is that today any problem in any part 
of the world ramifies into almost every part of the 
world. There are no longer any simple problems, 
nor any easy solutions. A course of action for 
Indochina may have to be judged in the light of its 
repercussions in Europe, the Middle East, or Mos- 
cow, and vice versa. 

I have the impression that in the days before the 
world became so unified it was easier to take de- 
cisions. The issues were, or seemed to be, simple. 
Also, they could readily be explained. Today al- 
most every problem has many complications, so 
that it is difficult adequately to explain the reasons 
for a decision and the multiple factors wliich go 
to make up that decision. 

There is a habit of mind which is sometimes 
called "localitis." Those who are close to a prob- 
lem, or those who only see part of a problem, 
quickly find a solution that seems obvious. Those 
who know more may find that the "obvious" solu- 
tion is no solution at all. Balancing scales may, 
from one angle, seem clearly weighted on one side. 
But when seen in proper perspective, they may 
seem to be equally balanced, or weighted on the 
other side. 

This need for balancing many factors has some 



undesirable consequences. I have already alluded 
to the fact that it makes adequate explanation dif- 
ficult. Also, it often tends to deprive decisions of 
the dynamic quality which is needed to make them 
effective. Often the mainspring of action is a 
sense of certainty. Unhappily, those who are best 
informed are often deprived of that satisfaction. 

The great deeds of history were wrought pri- 
marily by men witli deep conviction and dynamic 
faith. They were sure that they were right. 

It seems today that sureness can be dependably 
found only in the spiritual realm but that, when 
moral principles are sought to be practically ap- 
plied, confidence tends to vanish. Certainty is 
not readily found in the mundane realm, at least 
where there is full knowledge of the facts. The 
yearning for more certainty and precision than 
is compatible with the complexity of affairs en- 
courages only doctrinaire or fanatical attitudes 
and ultimate disillusionment. Perhaps it is good 
if fanaticism, in worldly terms, is on the way out. 

Spiritual vs. Material 

Then we have the dilemma which might be 
called that of the spiritual vs. the material. 

There are some who believe that moral con- 
siderations ought not to influence the foreign 
policy of a nation, that moral considerations are 
all right for the individual but not for the collec- 
tive unity. Corporate bodies, it is argued, should 
be directed only by material considerations. 

It is, I suppose, always true that those who act 
in a representative and trustee capacity do not 
have the same freedom as is had by individuals in 
dealing with their own lives and the property they 
own. Thus, directors of a corjDoration are, in 
general, not free to use corporate assets for char- 
itable purposes unconnected with the welfare of 
the corporation. To a degree, I suppose, the same 
principles apply to those who are trustees for a 
nation. 

It is, indeed, generally the case that those who 
represent a government operate only for the im- 
mediate and direct self-interest of the nation they 
represent. That is why suspicion generally at- 
taches to governmental grants. It is assumed 
that governments do not give away their tax- 
payers' money unless they see some specific quid 
pro quo. 

The Government of the United States has, I 
like to believe, a rather unique tradition in this 



April 25, J 955 



673 



respect. Our nation was founded as an experi- 
ment in human liberty. Our institutions reflect 
the belief of our founders that all men were en- 
dowed by their Creator with inalienable rights 
and had duties prescribed by moral law. They 
believed that human institutions ought primarily 
to help men develop their God-given possibilities 
and that our nation, by its conduct and example, 
could help men everywhere to find the way to a 
better and more abundant life. 

Our nation realized that vision. There de- 
veloped here an area of spiritual and economic 
vigor the like of which the world had never seen. 
It was no exclusive preserve; indeed, world mis- 
sion was a central theme. Millions were welcomed 
from other lands, to share equally the opportu- 
nities of the founders and their heirs. We put 
our experiment on public exhibition so that all 
might see and follow if they would. Through the 
establishment of schools and hospitals, often under 
religious auspices, American ideals were carried 
throughout the world. We gave aid and comfort 
to those elsewhere who sought to follow in our 
w^ay and to develop for themselves societies of 
greater human freedom. 

These conditions prevailed for 100 years and 
more. Then, as our material power waxed, our 
spiritual power seemed to wane. We appeared 
to be less concerned with conducting a great ex- 
periment for the benefit of mankind and to be 
more concerned with piling up for ourselves ma- 
terial advantages. Our vision seemed to contract, 
and our sense of mission to lessen. 

We had to meet the severest test that can come 
to a people, the test of prosperity. 

It was said by Jesus that material things will 
be added unto those who seek first the Kingdom of 
God and His righteousness. But when that hap- 
pens, then comes the great trial. For, as Jesus 
warned, those material things can readily become 
the rust that corrodes men's souls. 

Thus there is a familiar pattern. Men who feel 
a sense of duty to some higher Being strive here 
to do His will. Because of their faith, they have 
power and virtue and simple wisdom. They build 
not only for the day, but for the morrow; not 
merely for themselves, but for mankind. A society 
so founded will, when nature favors, produce 
wealth and luxury for many. AVlien tho.se by- 
products come, they seem .so good that they become 
promoted to be the all-sufficient end. 

674 



So there came a time when our people were 
drawn away from long-range creative effort and 
when they struggled to get and to hold material 
things. Practices originally designed to reflect 
a faith may not have been adequately vitalized by 
continuing faith. I believe, however, that it can 
fairly be said that, since the end of World War 
II, our nation has recaptured the faith in which 
it was founded and has resumed works such as 
those which in the past were called "The Great 
American Experiment." 

With 60 other nations we have actively partici- 
pated in the United Nations in its quest for peace. 
We have lent our moral, military, and material 
support to many free people. With more than 4r 
nations we have special mutual security arrange- 
ments. These measures are our contribution to the 
creation of a world which is safer and more securen 
for human freedom. This basic interest is the 
common bond between us and the other frea 
nations. 

We exert in every part of the world an in- 
fluence — an influence which we try, as far as is 
humanly possible, to make an influence for justice 
and not an influence for self-aggrandizement. 

No doubt we have made mistakes. But broadly 
speaking, our nation has played a role which I 
believe history will judge to have been honorable. 
It is a role which we could not have played unless 
those who exercised the power of government had 
believed that they were justified in putting moral 
considerations above material considerations. 

Devotion to Principle 

I have outlined some of the problems and per- 
plexities which confront those who have political 
responsibility. I have deliberately tried to avoid 
being dogmatic. Rather I have sought to stim- 
ulate .vour own thinking. I will, however, close 
with this general observation: 

It seems to me that a nation situated as is ours 
needs to follow a consistent and predictable course. 
We represent great power in the world — morally, 
intellectually, and materially. Other peoples and 
nations who are free and want to stay free usu- 
ally want to coordinate their policies with our 
own. I do not speak now of coordination in de- 
tail. As to details, there are almost always dif- 
ferences. That is inevitable, because differences , 
are the attribute of freedom. It is only despotism 
that produces conformity. I do, however, speak 

Department of State Bulletin 



of such basic harmony as freely emerges from 
those who feel a sense of common destiny and who 
want to help, and be helped by, each other. 

A measure of harmony exists today throughout 
much of the free world. It binds together, in 
a spirit of partnership, many of different races, 
creeds, and nationalities in many parts of the 
world. But the harmony for which many thus 
grope will never be perfected and preserved un- 
less the United States pursues a dependable, con- 
sistent course. 

There are many who, in particular cases, would 
like it if the United States would deviate from 
our basic principles to help them meet their par- 
ticular problems. "VTe rarely do so. That ac- 
counts for much of the superficial criticism we 
encounter abroad. But underlying these surface 
dissatisfactions lies, I feel, a deep, worldwide sense 
of respect for the United States because, even 
though we sometimes fall short, we do in general 
stand like a rock for certain principles and fol- 
low a course which, in its broad nature, is con- 
sistent and predictable. "Without that, there can 
never be harmony and a sense of security as 
among the free peoples. 

Obviously, a consistent and dependable national 
course must have a base broader than the par- 
ticular beliefs of those who from time to time 
hold office. Our policies must, on the one hand, 
be dependably embraced by our own people and, 
on the other hand, reflect a decent respect for the 
opinions of mankind. It would seem that only 
principles which conform to moral law meet that 
specification. So not only the basic faith of our 
people, who are essentially religious, but also en- 
lightened self-interest combine to urge that moral 
principle be a guide not merely to individual con- 
duct but also to the conduct of the nations. 



Some Aspects of Foreign Policy 

Remarks by Secrefaiy Dulles ' 

I will, I think, say a few words about the three 
areas which are probably of particular interest to 
you — Europe, and Asia, and then a word about 
the United Nations. 

In Europe, we are, I think, on the eve of acliiev- 

" Made before the Associated Church Press at Washing- 
ton, D. C, on Apr. 13. 



ing a very great result — the unification of West- 
ern Europe. That means the unification of coun- 
tries which in the past have recurrently been at war 
with each other over the centuries. Out of the 
last two of their wars sprang the First, and Second 
World Wars. The creation of something like the 
United States of Europe has been a dream for a 
long time. It is a dream that many Americans 
have shared, and we have found it possible to make 
a very substantial contribution to what I hope will 
be the realization of that dream. 

A good many people talk about this European 
unity as though all it meant was German rearm- 
ament. To my mind at least, German rearm- 
ament, while an important and necessary factor in 
the present world situation, is only a minor by- 
product of the great result, which is to draw to- 
gether these countries of Europe, notably Ger- 
many and France, which have in the past engaged 
in a struggle largely due, in recent years at least, 
to German aggressive expansionism. 

Those age-old historic quarrels will, we think, 
be composed as they come together within the 
fi-amework of a new Em-ope. And the fact of 
what we are doing there will, I think, be the great- 
est single contribution that could be made to peace 
in the world, and that, in my opinion, is infinitely 
more important than the fact that there will be 
perhaps a modest German contribution to the de- 
fense of Western Europe. 

Furthermore, the conditions under which that 
defense of Western Europe will be organized are 
going to constitute a pattern in limitation and 
control of armament which might well have an in- 
fluence far beyond the initial area where it will be 
applied. As you know, the program that is 
adopted there and is reflected in the Brussels 
Treaty, and to some extent in the operation of the 
Nato Pact, will provide for the elimination in cer- 
tain areas of the creation of weapons of mass de- 
struction. Atomic, biological, and chemical 
means of warfare will be prohibited entirely in 
certain areas ; there will be ceilings on the military 
establislmients that can be created in the various 
nations ; and there will be a policing of those ceil- 
ings through an Arms Control Agency. 

So that in addition to or perhaps as a part of the 
program wliich will, I think, assure a durable 
peace as between nations which all too often have 
been at war, there has been established perhaps 
the first realistic jjattern of limitation and control 
of armament which has ever been adopted on a 



April 25, 7955 



675 



comparable scale. Tliat acliievement, which is 
one to which I have devoted perhaps my greatest 
care and attention since becoming Secretary of 
State, looks as though it is on the eve of realiza- 
tion. 

Situation in Asia 

"Wlien one turns to Asia, the situation is not so 
promising. The Chinese Communist regime 
seems to be inspired by a type of aggressiveness 
which is reminiscent, unliappily, of that which 
occurred under Hitler in Germany. There is a 
great dependence upon force as a means of achiev- 
ing national goals and a national expansion. 
There still exists there the momentum of a revolu- 
tionary movement, a violent revolutionary move- 
ment. Six years ago the Chinese Communists 
completed the conquest by force of the mainland. 
That was at the end of 1949. Then in the next 
year they moved into North Korea and fought the 
forces of the United Nations thei-e at a time when 
the unification of Koi"ea was almost complete. 
They won what they considered to be a victory in 
driving the United Nations forces back from the 
Yalu River to the center of Korea, leaving North 
Korea effectively under the control of Comnninist 
China. 

Then in the next year they moved by force into 
Tibet and took that over. And after the Korean 
armistice was made, they stepped up militarj' aid 
to the Viet Minh forces and enabled them to win 
a spectacular military victory over the French at 
Dien-Bien-Phu. And when the Indochina ai-mis- 
tice occurred, they began their military operations 
from the center of China against the Formosa 
Straits area. 

We hope to be able, and are trying in many 
ways, to bring about acceptance of some sort of 
cease-fire situation where force will be renounced 
as an instrument for achieving national goals. 
We don't expect that the national goals will them- 
selves be abandoned, but just as it has been brought 
about that in West Germany Adenauer has agreed 
to renounce the use of force to unite Germany, and 
Syngman Rhee has abandoned the use of force to 
unite Korea, and as the use of force, as we hope, 
has been abandoned to unite Viet-Nam, so the 
consummation of conflicting ambitions with refer- 
ence to China in our opinion ought not to be 
achieved by a resort to force, which if it is pur- 
sued could lead to a tragic war. 



We do not believe that it is wise, or indeed in the 
long-term interests of peace, constantly to be fall- 
ing back in the face of military threats. Many 
people feel that if a strong stand had been taken 
against Hitler at some of his early stages of 
activity — when he occupied the Rhineland, when 
he made the Anschluss with Austria, when he took 
over part of Czechoslovakia and then all of 
Czechoslovakia — there might not have been the 
Second World War. So it cannot be said that 
peace is always served merely by giving in. 

On the other hand, certainly every possible 
effort must be made to exhaust all peaceful meas- 
ures which do not involve a surrender of human 
beings to a very terrible form of enslavement. 

Problems Facing tite United Nations 

I said I would say a word about the United 
Nations. We continue to attach the greatest im- 
portance to the United Nations, although we 
recognize that it is showing certain dangerous 
signs of weakness, very largely due to the lack of 
universality of membership. A great deal is said 
about the fact that the Chinese Communists are not 
membei-s. Well, it certainly is at least question- 
able whether they can comply with the charter 
requirement which says that you must be peace- 
loving before you can be a member. But, in addi- 
tion to the absence of the Chinese Communists, 
there are absent countries which rank among the 
great countries of the world — the Republic of 
Germany is not a member, Japan is not a member, 
Itah' is not a member, and there are in addition 
a dozen or more smaller countries that are not 
members. 

So when you have great pi'oblems which involve 
areas in which countries like Japan and Italy and 
Germany are interested, it is not always easy to 
get those pi-oblems dealt with in the United 
Nations, and I think one of the big problems that 
we are going to have to face in the next few years 
is going to be the problem of how to make the 
United Nations sufficiently universal in member- 
ship so that it will in fact be the forum for dealing 
with many problems. 

Today there is a tendency to deal with certain 
problems, which might otherwise go to the United 
Nations, through an organization like Nato, which 
does have in its membership Italy and we hope 
soon will have the Federal Republic of Germany. 
For that reason many problems can be dealt with 



676 



Deparfmenf of State Bulletin 



ill that forum more effectively than they can be 
deaU with in the United Nations. 

We are going to have this question of charter 
review, which will be on the agenda of the United 
Xations at the next session of the Assembly next 
September. As indicated before, the United 
.States will favor the holding of a Charter Review 
Conference. I would suppose that one of the big 
issues that will come up before that Conference 
will be to find ways to bring more countries into 
the United Nations as against the present situation 
in which there are approximately 14 nations 
which have been approved for membership by the 
General Assembly but which are kept out by the 
Soviet veto. If that veto continues to paralyze 
the organization, then it will face a really serious 
struggle for continuing influence in the world and 
a constantly increasing danger of being by-passed 
by other regional organizations. 

Policy on Formosa 

News Conference Statement hy Secretary Dulles 

Press release 204 dated AprU 12 

I have read Mr. Adlai Stevenson's speech. In 
relation to Formosa, he suggests, as original ideas, 
the very approaches which the Govermnent has 
been and is actively exploring. The results we 
all want will not be advanced by publicly prodding 
friendly governments. 

On one matter we seem sharply to differ. Mr. 
Stevenson speaks feelingly about our allies. How- 
ever, he forgets one ally, namely, the Republic of 
China. That alliance, originally created by Presi- 
dent Roosevelt, was recently reaffirmed by our 
mutual security treaty with the Republic of China. 
That was ratified a few weeks ago by an over- 
whelming, bipartisan vote of the Senate. It is 
upon the loyalty and resources of that ally that 
the free world must primarily depend for the 
defense of Formosa. Yet Mr. Stevenson seems to 



assume that that ally can be ignored and rebuffed. 

Aside from this, Mr. Stevenson has in fact en- 
dorsed the main features of the administration's 
program in relation to Formosa. 

We seek peace, not war. 

We are not committed to the defense of Quemoy 
and the Matsus except under the conditions which 
Congress has prescribed, namely, that their de- 
fense is required or appropriate in assuring the 
defense of Formosa itself. 

We desire a United Nations cease-fire and have 
repeatedly made that clear. 

We are seeking more free- world support for the 
defense of Formosa. 

Mr. Stevenson calls upon the administration to 
"renounce go-it-alone-ism." I am not certain 
whereof he speaks. In Europe, we helped to pick 
up the pieces of Edc and to forge a unity which 
promises to create a new Europe. In Asia we 
hammered out common policies which are em- 
bodied in the Manila Pact and the Pacific Charter 
as well as other security treaties. At Caracas, the 
nations of the Americas joined in a historic new 
policy of outlawing communism in this 
hemisphere. 

Never before in our history have we had so large 
a degree of peacetime cooperation in Europe, in 
Asia, and in the Americas. This cooperation has 
not come about automatically. It has been forged 
out of constant personal exchanges of views with 
our friends and sustained diplomatic efforts to im- 
plement the lofty, humane idealism of President 
Eisenhower. 

Letters of Credence 

Panajna 

The newly appointed Ambassador of Panama, 
J. J. Vallarino, presented his credentials to the 
President on April 11. For the text of the Am- 
bassador's remarks and the text of the President's 
reply, see Department of State press release 199. 



April 25, 1955 



677 



Benefits to the United States of Participation in Proposed 
Organization for Trade Cooperation 

MESSAGE OF THE PRESIDENT TO THE CONGRESS' 



The White House, 

April U, 1955. 

To the Congress of the United States: 

The United States continuously seeks to 
strengthen the spiritual, political, military, and 
economic bonds of the free nations. By cementing 
these ties, we help preserve our way of life, im- 
prove the living standards of free peoples, and 
make possible the higher levels of production re- 
quired for the security of the free world. With 
this objective in view, I recommended to the Con- 
gress in my message of January 10, 1955,= the en- 
actment of legislation designed to promote a 
healthy trade expansion and an increased flow of 
l)rivate capital for economic development abroad. 
Consistent with that broad purpose, the United 
States over the past seven years has participated 
in the multilateral trade agreement known as the 
General Agreement on Tariffs and Trade. This 
key element in the nation's foreign economic policy 
has been carried on under the authority vested in 
the President by the Congress in the trade agree- 
ments legislation. After several months of inten- 
sive review of the trade rules in the General Agi-ee- 
ment, the United States and 33 other participat- 
ing countries last month agreed ujjon certain re- 
visions of those rules. A new instrument was 
also drafted which would set up a simple inter- 
national organization, to be known as the Organ- 
ization for Trade Cooperation, whose purpose is 
the administration of the Getieral Agreement' 

I should like to recall the circumstances that 
gave rise to the General Agreement and this coun- 
try's participation in it. I should also like to 

' H. Doc. 140, 84th Confr., 1st scss. 
' BuiXETiN of .Tan. 24, lO.'S.'j, p. 119. 
* For text of Oxc agreement, see ihid., Apr. 4, 1955, p. 579. 

678 



stress some of its benefits to us which justify the 
continued existence of the General Agreement and 
United States membership in the Organization for 
Trade Cooperation. 

The economic and political dislocations pro- 
duced by World War II jeopardized, in the post- 
war years, the re-establishment of healthy, ex- 
panding international trade. Many countries had 
little to export and lacked the means to buy the 
products of other countries. Widespread resort 
to restrictions on imports and to discriminatory 
bilateral trade arrangements threatened a return 
to economic isolationism and narrow channels of 
government-directed trade. There was a great 
need for cooperative efforts to reduce unjustifiable 
trade restrictions and to establish a set of prin- 
ciples, mutually beneficial to the free nations of 
the world, for the reconstruction of world trade. 
In this state of world affairs, the United States 
and a group of friendly nations negotiated a series 
of tariff' agi-eements among themselves. They also 
negotiated a set of trade principles or rules to 
protect the tariff concessions. These tariff agree- 
ments and trade rules were incorporated in a 
nniltilateral trade agreement, the General Agree- 
ment on Tariffs and Trade. 

The trade rules consist basically of provisions 
which this nation, since 1934, has incorporated 
in bilateral trade agreements to protect our inter- 
est in the tariff concessions granted to us in such 
agreements. They provide, for example, that 
tariff concessions should not be nullified by the 
imposition of other restrictions; that quantita- 
tive restrictions should not be imposed on imports; 
that trade restrictions, when used, should be non- 
discriminatory as between countries; and that 
concessions granted to one country should be ex- 
tended to like products of other countries in ac- 

Deparfmenf of Sfa/e Bulletin 



cordance with the unconditional most-favored- 
nation principle. 

To provide the degree of flexibility required 
to meet the varying needs of participating coun- 
tries, the General Agreement provides for specific 
exceptions to the basic rules. Under certain cir- 
cumstances waivers may be granted to countries 
to depart from these basic rules. The United 
States has obtained such a waiver to restrict im- 
ports of agricultural products on which we have 
government programs. 

The General Agreement through the trade niles 
and the tariff negotiations sponsored under it 
has served well the purpose for which it was de- 
signed: the orderly expansion of international 
trade. Thirty-four countries, whose trade ac- 
counts for nearly four-fifths of the world's total 
trade, are now participating in this cooperative 
effort. World trade has expanded at a rapid rate, 
and for many countries foreign trade now repre- 
sents a higher ratio to total output of goods than 
in the prewar years. 

An important benefit to this country results 
from participation in multilateral trade negoti- 
ations under the General Agreement. Doing so 
makes it possible for us to obtain more tariff con- 
cessions on our exports than would be forthcoming 
from bilateral negotiation. This country, as a 
party to the multilateral agreement, obtains ben- 
efits from concessions which other countries would 
be unwilling to negotiate except in a multilateral 
undertaking. 

Some measure of the value of these multilateral 
trade agreement negotiations to the United States 
is indicated by the fact that we have been able 
to obtain concessions covering about 50 percent 
in value of our exports. 

Another advantage to this country through our 
participation in the General Agreement has been 
manifest during the past two years. Restrictions 
on the part of other countries against dollar im- 
ports are permitted under the trade rules for 
genuine balance of paj'ments reasons, and as the 
balance of payments position of other countries 
has improved, we have been able to persuade them 
to relax such restrictions. Between 1953 and the 
beginning of 1955 ten Western European countries 
had removed quantitative restrictions on dollar 
imports amounting to about 60 percent of such 
imports. Since the beginning of this year addi- 
tional restrictions have been removed. In the ab- 
sence of the General Agreement it would be more 



difficult to persuade these countries to relax such 
controls. We are thus moving toward full reali- 
zation of the tariff concessions that have been 
granted our exports since 1948. It is the policy 
of this Government to utilize the consultative pro- 
cedures of the General Agreement to press for 
the discharge of these commitments for the benefit 
of our foreign trade. 

In addition to the general relaxation of re- 
strictions on dollar imports that has been accom- 
plished, we have been successful in persuading 
other countries to remove discriminatory restric- 
tions against imports of particular dollar goods. 
This Government has protested the inconsistency 
between the discriminatory action in those cases 
and the principles of the General Agreement. 
Certain discriminatory restrictions have thus 
been removed on imports from this country of 
such items as coal, apples, cigarettes, lumber, po- 
tatoes, textiles, automobiles, tobacco, petroleum, 
wool, and motion pictures. 

A further important contribution of the Gen- 
eral Agreement to the extension of trade is the 
assurance against wholesale increases in tariff 
rates in export markets. Our exporters, there- 
fore, can proceed with their plans for sales in 
markets abroad with a greater degree of cer- 
tainty as to tariff rates. Participating countries 
may, of course, consistently with the trade rules, 
raise tariff rates in individual cases where serious 
injury to domestic industry is threatened. 

The revised General Agreement has been 
thoroughly reviewed within the Executive Branch 
of the Government. I believe it has been im- 
proved and strengthened. It protects the legiti- 
mate interests of this country and provides a firm 
basis for orderly trade expansion among the free 
nations of the world. The necessity for the 
United States to restrict imports of agricultural 
products with regard to which we have govern- 
ment programs is fully recognized. The right of 
this country to protect the legitimate interests of 
its industries and labor is clearly provided for. 
The rules of trade regarding the imposition of dis- 
criminatory import controls have been tightened 
and should assist in the efforts to remove and to 
prevent discriminatory restrictions against 
United States exports. The spirit with which the 
participating countries cooperated in the task of 
review and revision of the General Agreement was 
heartening and augurs well for its future vitality. 

The United States and the other participating 



April 25, 7955 



679 



countries concluded on the basis of seven years' 
experience that the orpanizutional provisions of 
the General Afifi'eenient should be changed to pro- 
vide a continuous mechanism for the administra- 
tion of the trade rules and the discussion of mutual 
trade problems. Under present arrangements 
these activities are confined largely to the annual 
sessions of the parties to the Agreement. The 
participating countries therefore have proposed 
to set up an Organization for Trade Cooperation 
for more effective administration of the trade 
rules and related activities. 

The Organization for Trade Cooperation would 
be established by a separate agreement among the 



Publications on GATT 

I'olloirhiff is a list of current Department of State 
imhlicd lions dP<tling with tiic General Agreement on 
Tariffs and Trade and the proposed Organisation 
for Trade Cooperation. 

The General Agreement on Tariffs and Trade 
(GATT). An explanation of its iirovisions and the 
proposed amendments. Department of State publi- 
cation 5813. 31 pp." 

The General Agreement on Tariffs and Trade — 
Present Rules and Proposed Revisions. Tests of 
pre.sent articles and proposed new articles, printed 
in parallel columns. S6pp.° 

Analysis of Agreement on the Organization for 
Trade Cooperation. Articlo-by-article summary. 
4 pp." 

The Organization for Trade Cooperation. Back- 
ground and text of agreement. 8 pp.' 
The Organization for Trade Cooperation. Back- 
ground Notes No. 5. 3 pp.' 



' Available from the Superintendent of Docu- 
ments, V. S. Government Printing Oflace, Washing- 
ton 25, D. C. 20 cents. 

'Available from the Superintendent of Docu- 
ments. 45 cents. 

' Limited number of copies available from the 
Division of Public Services, Department of State, 
Washington 25, D. C. 



participating countries. In addition to adminis- 
tering the General Agreement, it would provide a 
mechanii5m through which arrangements for trade 
negotiations could be facilitated. It would also 
serve as a forum for the discussion of trade mat- 
ters and for the amicable adjustment of i)roblems 
involving the trade rules. The Organization 
would have no supra-national powers. It would 
conduct no trade negotiations; this would be done 
by the countries who choose to participate in the 



negotiations and to whatever extent they choose. 

The United States delegation which took part 
in the revision of the General Agreement was spe- 
cifically instructed to reject all efforts to expand 
the functions of the new organization into fields 
other than trade. One measure of the success of 
the negotiations from the standpoint of the United 
States is the fact that the proposed Organization 
for Trade Cooperation is thus limited in its func- 
tions. Its effectiveness, in my judgment, will be 
enhanced by the fact that it has such specific and 
limited responsibilities. 

I believe the reasons for United States member- 
ship in the proposed Organization are overwhelm- 
ing. We would thus demonstrate to the free 
world our active interest in the promotion of trade 
among the free nations. We would demonstrate 
our desire to deal with matters of trade in the same 
cooperative way we do with military matters in 
such regional pacts as the North Atlantic Treaty 
Organization, and with financial matters in the 
International Monetary Fund and in the Interna- 
tional Bank for Reconstruction and Development. 
We would thus cooperate further with the free 
world, in the struggle against Communist domina- 
tion, to the greater security and the greater pros- 
perity of all. 

Such action would serve the enlightened self- 
interest of the United States. As a member of this 
Organization we could work more effectively for 
the removal of discriminatory restrictions against 
our exports. We could help establish conditions 
favorable to convertibility of currencies. We 
could further the expansion of markets abroad for 
the products of our mines, our farms and our fac- 
tories. We could assist in the development of con- 
ditions conducive to the international flow of in- 
vestment capital so urgently needed to expand 
production throughout the free world, especially 
in its underdeveloped areas. 

Failure to assume memberehip in the Organiza- 
tion for Trade Cooperation would be interpreted 
throughout the free world as a lack of genuine 
interest on the part of this country in the efforts 
to expand trade. It would constitute a serious set- 
back to the momentum which has been generated 
toward that objective. It would strike a severe 
blow at tlie development of cooperative arrange- 
ments in defense of the free world. It could lead, 
to the imposition of new trade restrictions on the 
part of other countries, which would result in a 



680 



Department of State Bulletin 



contraction of world trade and constitute a sharp 
setback to United States exports. It could result 
in regional re-alignments of nations. Such de- 
velopments, needless to say, would play directly 
into the hands of the Communists. 

I believe the national interest requires that we 
join with other countries of the free world in deal- 



ing with our trade problems on a cooperative basis. 
I herewith transmit copies of the agreement 
providing for an Organization for Trade Cooper- 
ation, and I recommend that the Congress enact 
legislation authorizing United States membership 
in that organization. 

DwiGHT D. Eisenhower 



What NATO Means to Americans 



hy George W. Perkins 

U.S. Permanent Representatwe on the North Atlantic CouncW^ 



It is 6 years ago today that the North Atlantic 
Treaty was signed. Much has hajipened in the 
world and much has happened in the development 
of the North Atlantic Treaty Organization in that 
period. I need not go into a history of those events 
here tonight. But there are some general consid- 
erations in connection with Nato which I think 
are worth discussing. 

All of us here are aware of the basic aims of 
Nato. We know it is high in importance among 
the collective undertakings in which the United 
States is engaged. At the same time, it is also 
important to recognize — as most of us do — that 
this knowledge is not widely shared by the gen- 
eral ijublic. In fact, a recent poll indicated that 
less than 25 percent of the American people can 
even identify Nato. 

This is a serious situation in a democracy such 
as the United States, where public opinion exer- 
cises a continuous and powerful influence on for- 
eign policy. It offers ample justification for the 
task which the American Council on Nato has 
undertaken. 

In seeking better understanding and support of 
Nato and a closer acquaintance with basic Nato 



'Address made on Apr. 4 before the American Council 
on Nato at New York, N. Y. Ambassador Perkins, who 
was confirmed by the Senate on Mar. 14, serves as chief 
of the U.S. Mission to the North Atlantic Treaty Orsran- 
ization and European Regional Organizations in Paris 
and also represents the United States at the Organiza- 
tion for European Economic Cooperation. 



problems, it is neither possible nor necessary that 
the average American citizen become an expei-t in 
the details of Nato activities. It matters very 
little whether he knows the meaning of "infra- 
structure,'" or whether he is conversant with the 
intricacies of the Nato Annual Keview. On the 
other hand, there are certain fundamental con- 
siderations pertaining to Nato which must be 
known and api^reciated by the American public as 
a whole if this country is to participate success- 
fully in Nato over a long period of years and is to 
derive maximum benefits from the alliance. 

The first of these considerations relates to the 
basic premise of collective security upon which the 
alliance is founded. 

The overwhelming majority of Americans 
clearly believe that it is a good thing to work in 
concert with other nations of the world, as op- 
posed to "going it alone." But perhaps many are 
impelled by motives of generosity rather than by 
enlightened self-interest. I don't want to criticize 
the humanitarian instinct. We should be proud 
of it. But if the Atlantic community is to survive 
the trials and vicissitudes of a long cold war, it 
is essential that we cease to look upon our military 
and economic aid programs as a sort of extension 
of a community chest and that we stop regarding 
our allies simply as people who need our hel,p. 
We need to understand the literal truth of the 
statement that we need them just as much as they 
need us. 



April 25, 1955 



681 



At the end of World War II, this country found 
itself in a much more powerful position with 
respect to other parts of the world than at any 
previous time in its history. At the same time, 
we found ourselves more vulnerable than ever 
before. As we prew stronger, we also became less 
secure. It is only natural that this apparent para- 
dox should have created some confusion and that 
a great deal of thought and energy should have 
been devoted to attempts to explain it, or to find 
scapegoats to bear the blame. But when we ex- 
amine the facts the reasons for it are clear. 

The developments of scientists and technicians 
have, combined with the productive capacity of 
our gigantic industrial establishment, given us a 
standard of living undreamed of. But time and 
space have at the same time been reduced to a 
point which has almost eliminated them as a shield 
for our continent. The raw materials required 
to supply our industry can no longer be supplied 
from within our own borders and now come in 
ever-increasing measure from all over the free 
world. Because of these factors we have lost much 
of our self-sufficiency. 

Some aspects of this new situation, of course, 
offer special advantages to the United States. 
Our science and technology have given us an ex- 
traordinary capacity for retaliation against ag- 
gression. This superiority is indispensable to our 
national safety and to the security of other free 
nations. But we could make no more dangerous 
error than to be deluded by the naive fallacy that 
our power of retaliation has made the United 
States omnipotent in world affairs, or that it has 
lessened our need for allies. In the first place, 
as both President Eisenhower and Secretary 
Dulles have repeatedly pointed out, the capacity 
for massive retaliation is inadequate as an ex- 
clusive means of defense. It must be supple- 
mented and reinforced by other elements and 
techniq»ies, both military and nonmilitary. In 
the second place, we should remember that even 
our superiority in long-range aircraft and nuclear 
weapons depends in large measure upon what hap- 
pens to our allies. In the long run, superiority 
in modern weapons will depend upon a composite 
of many factors, including various natural re- 
sources, overall industrial capacity, the genius 
of scientists, the skills of technicians and workers, 
the availability of trained military pereonnel, and 
the possession of bases that are strategically lo- 
cated and properly equipped. 



682 



Importance of European Allies 

Our European allies are strong in skilled man- 
power — the most important resource on earth. 
They have scientific and technical skills which are 
comparable to those existing in this country and 
which are unequalled anywhere else in the world. 
The productivity of their factories and farms is 
surpassed only by that of American factories and 
farms. In combination, they now have military 
forces larger in size than our own, and they con- 
trol vital land areas. They have important in- 
terests and responsibilities in Asia and Africa 
which give them considerable influence over events 
in those areas. All told, it is absolutely essential 
that the United States help to keep the allied na^ 
tions of Europe free of Communist control. We 
must also do whatever is practical to maximize 
the positive contribution which these nations can 
make to their own security and ours. 

If these facts can be thoroughly understood by 
the American people as a whole, I am convinced 
that many of the present controversies over for- 
eign policy will fade away. It is one thing to 
support a policy or program because of a friendly 
interest in the welfare of other human beings, 
and it is another thing to give such support be- 
cause one realizes that his own freedom and his 
own life are at stake. The most important fact 
about Nato is its necessity — both to Europe and 
to North America. 

The second basic consideration I would like to 
emphasize tonight is the form and nature of the 
relationship that has evolved under Nato. Suc- 
cessful cooperation with our Nato jiartners not 
only demands an appreciation of the vital neces- 
sity of such cooperation but also requires a gen- 
eral understanding of the political environment 
within which this cooperation takes place. 

Nato has already served as a framework for 
several novel developments in international co- 
operation. Among these are the integration of 
military forces under international command, the 
joint financing of a system of bases which are 
used in common by all member countries, the pro- 
cedure by which each nation's proposed Nato 
contribution is reviewed annually by the Nato 
governments as a whole, and the practice of regu- 
lar consultation and exchange of views on a va- 
riety of political issues. A casual observer might 
infer that N.\to is some kind of supranational or- 
ganization. Yet it is important to remember at 

Department of Sfafe Bu//efin 



all times that Nato is no such thing. "We should 
repeatedly remind ourselves, first, that Nato is a 
coalition, and second, that it is a coalition of demo- 
cratic governments. If these facts are kept firmly 
in mind, it is easier to appreciate certain impli- 
cations that inevitably follow. 

The first and most obvious implication is that 
Nato decisions and actions must reflect the inter- 
ests of all the member countries. It is not sur- 
prising that these nations have separate and some- 
times conflicting interests. We know that there 
are frequent conflicts of interest even among states 
and regions of the United States of America. 
Fortunately, our federal political system affords 
machinery through which these conflicts can be 
compromised, reconciled, or balanced, under the 
principle of majority rule. In Nato, no such 
machinery exists. Moreover, the divergencies of 
interest within Nato are considerably more 
numerous and more marked than are likely to be 
found within this country. 

We often talk about the way in which Europe 
and North America are bound together by ties of 
kinship, culture, and tradition. But it is equally 
important to recognize that differences still exist. 
Some Nato countries have worldwide interests and 
responsibilities; others have none. The member 
countries range in size from 998 square miles to 
3,800,000 square miles and in population from 
150,000 people to 160,000,000 people. The average 
annual income of a citizen of the most prosper- 
ous Nato country is more than $2,000 a year, 
while the average citizen of the least prosperous 
Nato country has only the equivalent of $175 per 
year. The Nato peoples use several different lan- 
guages, have different religious traditions, and dif- 
ferent systems and procedures for self-government. 
It is inevitable, therefore, that the representatives 
of the governments who sit around the table in 
the North Atlantic Council and in subordinate 
Nato committees will not always immediately 
agree. 

The Need for Compromise 

In a situation of this kind, some compromise is 
inevitable. I know that many Americans are a 
bit dubious about the process of compromise in 
international relations. For some reason, there 
seems to be a tendency among Americans — not 
nearly so prevalent in other countries — to regard 
any compromise with other governments as an act 



falling somewhere between appeasement and high 
treason. We are much more flexible in our attitude 
toward domestic issues. But when we sit down 
at an international conference table we often begin 
with the assumption that someone is trying to steal 
our eyeteeth and we damn our own representatives 
if we find that they have conceded an inch. Our 
essential difficulty, I suspect, is that the role of in- 
ternational leadership is still new to Americans. 
It is quite important that we learn that the art of 
international leadership is not one in which the 
leader can or should always dominate others. 

Even though we may be willing to meet our 
allies halfway, and even though each of them may 
share this attitude, the process of reconciling di- 
vergent interests still takes some doing. AVhen 
the Nato nations are involved in a negotiation, the 
successful attainment of agreement demands a 
great deal of intricate thought, as well as good 
will. 

The inadequacy of good will as an exclusive 
basis for international cooperation is well illus- 
trated by a story about some of our troops in Aus- 
tralia during World War II. It seems a unit of 
American soldiers was preparing to land and take 
up station in a medium-sized Australian com- 
munity. Wishing to be good guests and to show 
proper respect for local customs, the American 
officers, of course, ordered their men to drive all 
vehicles on the left-hand side of the road. Little 
did they know that their desire to be good guests 
was fully equalled by the desire of the Australians 
to be good hosts. In honor of their American 
visitors, the citizens of the Australian town had 
practiced driving on the right-hand side of the 
road for several weeks. When the day of de- 
barkation arrived, the result — as you can imag- 
ine — was one of the classic traffic jams in all 
history. 

In international relations, even the Golden Ride 
does not solve all problems. It must be supple- 
mented by specific measures of coordination that 
meet the test of practicality. 

In addition to the fact that the successful opera- 
tion of a coalition of democracies requires con- 
stant consideration of the interests of all members, 
equal consideration must be given to their feelings 
and sensitivities. Difficulties may arise as readily 
from offenses to national pride as from injuries 
to national interests. Because of the size and 
power of the United States, it is especially im- 
portant that we Americans keep in mind the neces- 



April 25, 1955 



683 



sity of workinjr with our allies on the basis of 
equality, nuitual confidence, and mutual respect. 
It is impossible, of course, for the Nato nations to 
act as equals in every sense of the word. It is to 
be expected that the views of some of the Nato 
powers will carry more weight in critical decisions 
than the views of others. I believe that this is 
fully understood. However, this does not give 
any nation justification for disregarding the views 
of any other. Nor does it excuse statements and 
actions, whether by public officials or private 
citizens, which imply that the smaller nations of 
the alliance have the status of satellites. 

Secretary Dulles covered this point very clearly 
some months ago when he said : 

It is the clear and firm purpose of this administration 
to treat other free nations as sovereign equals. . . . 
We do not want weak or subservient allies. Our friends 
and allies are dependable just because they are unwilling 
to be anyone's satellites. They will freely sacrifice much 
in a common effort. But they will no more be subservient 
to the United States than they will be subservient to 
Soviet Russia. Let us be thankful that they are that 
way and that there still survives so much rugged deter- 
mination to be free. If that were not so, we would be 
isolated in the world and in mortal peril. 

.... To maintain a cooperation of the free is a difficult 
and delicate process. Without mutual respect and friend- 
ship it would be impossible. We do not propose to throw 
away those precious assets by blustering and domineering 
methods. 

We shall be firm and persistent in trying to secure agree- 
ment on what we believe to be right. We shall expect a 
fair sharing of efforts and burdens. But we shall try 
not to be arrogant or to demand of others what we our- 
selves, if circumstances were reversed, would reject. 

It would be useful if all Americans would grasp 
and be guided by those principles. 

Background of Domestic Politics 

Another important implication that arises from 
a coalition of democracies is the fact that all deci- 
sions and actions must stand against the ever- 
present background of domestic politics. The 
internal political processes that invigorate demo- 
cratic societies do not cease to exist when these 
governments join in a voluntary international en- 
terprise. In some ways, the consequences are mul- 
tiplied. It is important that every government's 
policies, the actions of one's allies, and even the 
Atlantic relationship itself must remain subject 
to free criticism from every quarter, both re- 
strained and vehement, responsible and irrespon- 
sible. We must expect to find occasional "opposi- 



tion for the sake of opposition" just as we find it 
in connection with domestic political problems, 
and we must expect that the fundamental princi- 
ples upon which there is virtual unanimity of 
agreement will sometimes be eclipsed by the pas- 
sions aroused over particular issues. 

If we are careful to remember that this is the 
way democracies work, we will be able to maintain 
a more balanced perspective about the wild state- 
ments that have occasionally inspired fears and 
suspicions. We need to remember that allied na- 
tions have opposition parties which seek to make 
political capital out of real or fancied mistakes 
by the government and also have a "lunatic fringe" 
whose opinions about the United States and about 
Nato usually have no great significance. In par- 
ticular, we should remain aware that opposition 
parties in every democratic country sometimes ad- 
vocate policies that they later reject when possessed 
with the responsibilities of government. In brief, 
let's try to remember that our allies are democra- 
cies too, and let's hope they will use the same 
charitable understanding in thinking about us. 

In discussing the implications of a coalition of 
democracies, I have placed considerable emphasis 
on the problems and difficulties that arise. I think 
we all recognize, however, that there are certain 
pronounced advantages in this kind of relation- 
ship. One of the most important is the fact that 
a relationship based on a community of interest 
among peoples is a great deal more solid and de- 
pendable than a relationship based upon the whims 
of monarchs or dictators. "^i^Hienever a problem 
arises, for example, between the governments of 
France and Great Britain, there is considerable 
public pressure on both governments to work out a 
mutually satisfactory solution which will preserve 
the bonds of common interest. Wlien there is 
disagreement among dictators, as we know, an 
alliance may be changed without warning into a 
state of hostility. 

It is also useful to remember that the disagree- 
ments and difficulties that arise in an alliance such 
as N.\to can, in fact, be surmounted. This has been 
demonstrated in Nato again and again. Of neces- 
sity, the North Atlantic Council operates under a 
rule of unanimity. Decisions are not made by a 
majority vote but only after all governments — or 
at least all those concerned with a particular pro- 
posal — have concurred in the decision. This 
means that decisions are occasionally delayed, but 



684 



Department of State Butletin 



the principle of unanimity has not made it impos- 
sible to reach decisions. In actual practice, those 
governments which find themselves in a minority 
are usually willing to defer to the views of the 
majority except on issues of vital concern to their 
own national interests. The rule of unanimity has 
not produced paralysis but has instead insured 
the willing participation of all in the programs 
and projects undertaken, which is essential to any 
operation of the nature of Nato. 

In Nato, of course, our essential objective is not 
to win a war but to prevent one. To be successful, 
close cooperation is essential. The Nato countries 
have already demonstrated their ability to stick 
together through difficult times and to solve prob- 
lems unprecedented in history. There is every 
reason to hope that this relationship will grow 
closer, more extensive, and more successful with 
each passing year, provided the great mass of the 
people on both sides of the Atlantic truly under- 
stand the fundamental purposes and characteris- 
tics of the relationship. 

The creation of this understanding by the 
peoples of the North Atlantic Treaty countries is 
the task of all of us. I am particularly glad that 
the American Council on Nato is assuming leader- 
ship in this field in the United States. 



Sixth Anniversary of NATO 

Following are texts of a neins conference state- 
ment hy Secretary Dulles and of inessages ex- 
changed hy the Secretary and Lord Ismay, Sec- 
retary General of the North Atlantic Treaty 
Organization, on the occasion of the sixth anni- 
versary of the signing of the North Atlantic 
Treaty. 

Statement by Secretary Dulles 

Press release 185 dated April 5 

Yesterday was the sixth anniversary of the 
North Atlantic Treaty. I took the occasion to 
send my greetings to Lord Ismay, the Secretary 
General of Nato, and, through him, to the other 
Nato governments. 

Nato is one of our bipartisan programs which 
has been highly successful. Senator Vandenberg 
and I were closely associated with Secretary of 
State Marshall and Under Secretary Lovett in the 
development of this treaty; and in the Senate I 

April 25, J 955 

340100—55 3 



took an active part in supporting its ratification. 
I recall the angry predictions by Communist 
spokesmen that this treaty would be an instrument 
of aggression. Actually, it has been a stabilizing 
influence for peace. 

The same Communist accusations are now di- 
rected against Western European Union. This 
historic development has been made possible by 
the North Atlantic Treaty, by the cooperation 
which has developed under it, and by the means it 
has provided for a close integration of the armed 
forces of Western powers on the continent of 
Europe. Western European Union, like the 
North Atlantic Treaty, will be another step in the 
consolidation of peace. By burying the ancient 
differences between France and Germany, it prom- 
ises to create a new Europe. 

The next meeting of the Nato Ministerial Coun- 
cil, to be held about a month from now, will mark 
the opening of a new chapter of fruitful coopera- 
tion as between the members of the Atlantic 
Community. 

Secretary Dulles to Lord Ismay, April 4 

On the occasion of the sixth anniversary of the 
North Atlantic Treaty, I wish to extend to you, 
and through you to the Chairman of the North 
Atlantic Council and the representatives of other 
Nato governments, the gi'eetings of the United 
States Govermnent. I also want to express my 
appreciation for the effective service and leader- 
ship you have rendered to the organization. The 
past year has brought the Nato countries closer 
together than ever before, and has marked a 
genuine progress in many fields of cooperative 
activity. There is every prospect that the At- 
lantic partnership will become an increasingly 
effective instrument of peace and security in the 
years ahead, and I can assure you of the continued 
cooperation of the United States Government 
toward this objective. 

Lord Ismay to Secretary Dulles, April 6 

On behalf of the North Atlantic Council, may I 
thank you, and through you the Government of the 
United States of America, most sincerely for youi' 
encouraging message of greeting on the occasion 
of the sixth anniversary of the North Atlantic 
Treaty. The memorable events of the past year 
have proved the solidarity and ever increasing 
strength of the alliance, and with the continued 



685 



loyal and inaf^iiificent support of the United 
States, we look forward to the day when we can 
devote to the pursuits of peace a greater measure 
of our energies. 



Agreement for NATO Cooperation 

on Atomic Information 

The W/i/'fe House on April 13 released the fol- 
lo whiff letter from the Prenident to Senator Clin- 
ton P. Anderson^ chaimuin of the Joint Committee 
on Atomic Enerffj/, in ivhich the President trans- 
mits, with his approval, the draft agreement for 
NATO cooperation on atomic information. Re- 
leased at the saine time were a letter to the Presi- 
dent from the Secretary of Defense recommendiJiff 
approval and the text of the. draft agreement. 

Letter From the President to Senator Anderson 

April 13, 1955 
Dear Senator Anderson : Pursuant to Section 
123 of the Atomic Energy Act of 1954,' I liereby 
submit to the Joint Committee on Atomic Energy 
a proposed agreement for cooperation regarding 
the communication of atomic information to the 
North Atlantic Treaty Organization. 

Under the terms of the proposed agreement, 
the United States will comnninicate to the North 
Atlantic Treaty Organization, so long as that 
Organization continues to make substantial and 
material contributions to the mutual defense ef- 
fort, atomic information which the United States 
considers as necessary to 

(1) the development of defense plans; 

(2) the training of personnel in the employ- 
ment of and defense against atomic weapons ; 
and 

(3) the evaluation of the capabilities of po- 
tential enemies in employment of atomic 
weapons. 

Other members of the North Atlantic Treaty 
Organization agree to make atomic information 
available to the Organization on a similar basis. 

Atomic information made available pursuant 

to the proposed agreement will not be transferred 

to unauthorized persons or beyond the jurisdic- 

» 
' Public Law 703, 83d Cong. 



tion of the North Atlantic Treaty Organization, 
and will be safeguarded by the stringent security 
regulations in force within the North Atlantic 
Treaty Organization. Under the terms of the 
proposed agreement, which will remain in force 
for the duration of the North Atlantic Treaty, 
transfers of atomic information by the United 
States will only be made in accordance with the 
Atomic Energy Act of 1954. 

The North Atlantic Council strongly endorsed 
the proposed agreement, and I consider it to be a 
great stride forward in the strengthening of our 
common defense. It is my firm conviction that 
the proposed agreement will enable the North 
Atlantic Treaty Organization, consistent with the 
security and defense of the United States, to evolve 
more eifective defense plans concerning the use of 
atomic weapons than have heretofore been 
achieved. Accordingly, I hereby determine that 
its performance will promote and will not con- 
stitute an unreasonable risk to the common defense 
and security, and approve the proposed agreement 
for coopei-ation. In addition, I hereby authorize, 
subject to the provisions of the Atomic Energy 
Act of 1954, the Honorable George W. Perkins, 
United States Permanent Representative to the 
North Atlantic Council, to execute the proposed 
agreement and the Department of Defense, with 
the assistance of the Atomic Energy Commission, 
to cooperate with the North Atlantic Treaty Or- 
ganization and to communicate Restricted Data to 
that Organization under the agreement. 
Sincerely, 

DwiGHT D. Eisenhower 

Letter From Secretary Wilson to the President 

April 2, 1955 
Dear Mr. PREsroENT: Under the terms of Sec- 
tion 144 (b) of the Atomic Energy Act of 1954, 
you are empowered to authorize the Department 
of Defense, with the assistance of the Atomic En- 
ergy Commission, to cooperate with the North 
Atlantic Treaty Organization and to communicate 
to that organization certain atomic information 
necessary to the development of defense plans, the 
training of personnel in the employment of and 
defense against atomic weapons, and the evalua- 
tion of the capabilities of potential enemies in the 
employment of atomic weapons. This, however, 
may be undertaken only in accordance with the 
limitations imposed by the Act and under an 



696 



Deparfment of State Bullotin 



agreement entered into pursuant to Section 123. 

A draft of such an agreement was prepared 
here last fall in cooperation with the Department 
of State and reviewed by the Atomic Energy Com- 
mission. This draft was subsequently introduced 
in the North Atlantic Council for negotiation. I 
am happy to report that the North Atlantic Coun- 
cil on March 2, 1955, approved a negotiated text 
which does not differ in substance from the origi- 
nal U.S. draft, and recommended that this pro- 
posed agreement be concluded between the fourteen 
member governments on their own behalf and that 
of the North Atlantic Treaty Organization. 

At the same time the North Atlantic Council 
approved a revised version of the Nato security 
regulations, which prescribe stringent measures 
and procedures for the protection and safeguard- 
ing of security information. These revised regu- 
lations will apply to the control and dissemina- 
tion of all atomic information communicated to 
.the North Atlantic Treaty Organization, includ- 
ing that classified as Restricted Data. 

It is my firm opinion that the proposed agree- 
ment is in full accordance with the provision of 
the Atomic Energy Act of 1954, and I am con- 
vinced that it will mark a major step forward in 
the development of United States security plans 
and the common defense of the free world. I 
therefore strongly recommend that you approve 
this proposed agreement as required by Section 
123 of the Atomic Energy Act of 1964 and trans- 
mit the agreement to the Joint Committee on 
Atomic Energy together with your determinations 
and authorizations as to execution. 

With gi-eat respect, I am 
Faithfully yours, 

C. E. Wilson 
Secretary of Defense 



Draft Agreement Between the Parties to the North 
Atlantic Treaty for Cooperation Regarding 
Atomic Information 

Peeamble 

The Parties to the North Atlantic Treaty, signed at 
Washington on 4th April, 1949, 

Recognising that their mutual security and defence re- 
quires that they be prepared to meet the contingencies of 
atomic warfare, and 

Recognising that their common interests will be ad- 
vanced by making available to the North Atlantic Treaty 
Organization infoi-mation pertinent thereto, and 

Taking into consideration the United States Atomic 



Energy Act of 1954, which was prepared with these pur- 
poses in mind, 

Acting on their own behalf and on behalf of the North 
Atlantic Treaty Organization, 

Agree as follows : 

Article I 

1. While the North Atlantic Treaty Organization con- 
tinues to make substantial and material contributions to 
the common defence efforts, the United States will from 
time to time make available to the North Atlantic Treaty 
Organization, Including its civil and military agencies 
and commands, atomic information which the Government 
of the United States of America deems necessary to : 

(a) the development of defence plans; 

(b) the training of personnel in the employment of and 
defence against atomic weapons ; and 

(c) the evaluation of the capabilities of iwtential 
enemies in the employment of atomic weapons. 

2. As used in this Agreement so far as concerns infor- 
mation provided by the United States, "atomic infor- 
mation" means Restricted Data, as defined in Section 11 r 
of the United States Atomic Energy Act of 1954, which is 
permitted to be communicated pursuant to the provisions 
of Section 1-14 b of that Act, and information relating 
primarily to the military utilisation of atomic weapons 
which has been removed from the Restricted Data cate- 
gory in accordance with the provisions of Section 142 d of 
the United States Atomic Energy Act of 1954. 

3. All transfers by the Government of the United States 
of America of atomic information will be made in com- 
pliance with the provisions of the United States Atomic 
Energy Act of 1954, and subsequent applicable United 
States legislation. Under this Agreement there will be 
no transfers of atomic weaiwns or special nuclear mate- 
rial, as these terms are defined in Section 11 d and Sec- 
tion 11 t of the United States Atomic Energy Act of 1954. 
(The sections of the United States Atomic Energy Act 
of 1954 referred to in paragraphs 2 and 3 of this Article 
are attached). 

Article II 

1. Atomic information which is transferred to the North 
Atlantic Treaty Organization will be made available 
through the channels now existing for providing classified 
military information to the North Atlantic Treaty 
Organization. 

2. Only those persons within the North Atlantic Treaty 
Organization who.se duties require access to atomic in- 
formation may be the original recipients of such informa- 
tion. Atomic information will be authorised for dis- 
-semlnation within the North Atlantic Treaty Organization 
only to persons whose North Atlantic Treaty Organization 
responsibilities require them to have access to such in- 
formation. Infonnation will not be transferred by the 
North Atlantic Treaty Organization to unauthorised per- 
sons or beyond the jiuisdiction of that Organization. The 
Government of the United States of America may stipulate 
the degree to which any of the categories of information 
made available by it may l)e disseminated, may specify 
the categories of persons who may have access to such 



kptW 25, 1955 



687 



information, and may impose such other restrictions on 
the (lisstMiiination of information as it deems necessary. 

Article III 

1. Atomic information will be accorded full security pro- 
tection under applicable North Atlantic Treaty Organiza- 
tion regulations and procedures, and where applicable, 
national legislation and regulations. In no case will re- 
cipients maintain security standards for the safeguarding 
of atomic information lower than tliose set forth in the 
pertinent North Atlantic Treaty Organization security 
regulations in effect on the date this Agreement comes 
into force. 

Article IV 

1. Atomic information which is transferred by the Gov- 
ernment of the United States of America pursuant to 
Article I of this Agreement shall be used exclusively for 
the preparation of and in implementation of North Atlantic 
Treaty Organization defence plans. 

2. The North Atlantic Treaty Organization will from 
time to time render reports to the Government of the 
United States of America ot the use which has been made 
of the information. These reports will contain pertinent 
information requested by the Government of the United 
States of America and will in particular contain a list 
of the persons possessing certain categories of informa- 
tion, in accordance with the provisions of paragraph 2 
of Article II, and a list of the documents which have been 
transferred. 

Article V 

1. The Tarties to the North Atlantic Treaty, other than 
the United States, will to the extent that they deem neces- 
sary, make available to the North Atlantic Treaty Organi- 
zation information in the same categories as may be made 
available by the United States under Article I of this 
Agreement. An.y such information will be supplied on 
the same or similar conditions as those which apply under 
this Agreement with respect to the United States. 

Article VI 

1. The Agreement shall enter into force upon notifica- 
tion to the United States by all Parties to the North At- 
lantic Treaty that they are bound by the terras of the 
Agreement. 

2. If any other State becomes a Party to the North 
Atlantic Treaty no information made available to the 
North Atlantic Treaty Organization under this Agree- 
ment will be provided to any i)erson who is a national of, 
or who is employed by, the new Party to the North At- 
lantic Treaty until the new Party has notified the Govern- 
ment of the United States of America that it is bound by 
the tenns of this Agreement, and upon such notification, 
this Agreement will enter into force for the new Party. 

3. The Government of the United States of America 
will inform all Parties to the North Atlantic Treaty of the 
entry into force of this Agreement under paragraph 1 of 
this Article and of each notification received under para- 
graph 2 of this Article. 

4. This Agreement shall be valid as long as the North 
Atlantic Treaty is in force. 



In witness whereof the undersigned Representatives 
have signed the present Agreement on behalf of their 
resiiective States, members of the North Atlantic Treaty 
Organization, and on behalf of the North Atlantic Treaty 
Organization. 

Done at Paris this day of 1955, in the Eng- 

lish and French languages, both texts being equally au- 
thoritative, in a single original which shall be deposited 
in the archives of the Government of the United States 
of America. The Government of the United States of 
America shall transmit certified copies thereof to all the 
signatory and acceding States. 

For the Kingdom of Belgium : 

For Canada : 

For the Kingdom of Denmark : 

For France; 

For the Kingdom of Greece : 

For Iceland : 

For Italy : 

For the Grand Duchy of Luxembourg : 

For the Kingdom of the Netherlands : 

For the Kingdom of Norway : 

For Portugal : 

For Turkey : 

For the United Kingdom of Great Britain 

and Northern Ireland : 
For the United States of America : 

Sections of the United States Atomic Energy Act of 1954 
Referred to in the Agreement for Co-Operation Re- 
garding Atomic Information 

Section 11. Definitions 

Section 11 d : 

"d. The term 'atomic weapon' means any "Atomic 
i.,. . i . , . .. weapon 

device utilizing atomic energy exclusive of 

the means for transporting or propelling the 
device (where such means is a separable 
and divisible part of the de\ice), the prin- 
cipal purpose of which is for use as or for 
development of, a weapon, a weapon pro- 
totype, or a weapon test device." 

Section 11 r: 

"r. The term 'Restricted Data' means all "Restricted 

Data 
data concerning: (1) design, manufacture, 

or utilisation of atomic weapons; (2) the 
production of special nuclear material ; or 
(3) the use of special nuclear material in 
the production of energy, but shall not in- 
clude data de-classified or removed from the 
Restricted Data category pursuant to Sec- 
tion 142." 

Section 11 t: 

"t. The term 'special nuclear material' "Special 

nuclear 
means (1) plutonium, uranium ennched in material" 

the isotope 233 or in the isotoiie 235, and any 
other material which the Commission, pur- 
suant to the provisions of section 51, de- 
termines to be special nuclear material, but 
does not include source material; or (2) 



688 



Department of State Bulletin 



any material artificially enriched by any of 
the foregoing, but does not Include source 
material." 



Section 142. 



Classification and Declassification of 
Restbicted Data 



Section 142 d: 

"d. The Commission shall remove from the Restricted 
I >ata category such data as the Commission and the 
Department of Defense jointly determine relates pri- 
marily to the military utilisation of atomic weapons 
and which the Commission and Department of Defense 
jointly determine can be adequately safeguarded as de- 
fence information : provided, however, that no such data 
so removed from the Restricted Data category shall be 
transmitted or otherwise made available to any nation 
or regional defence organization, while such data remains 
defence information, except pursuant to an agreement 
for co-operation entered into in accordance with sub- 
section 144 b." 

Section 144. International Co-Operation 

Section 144 6- 

"b. The President [of the United States of America] 
may authorise the Department of Defense, with the as- 
sistance of the [Atomic Energy] Commission to co-oper- 
ate with another nation or with a regional defence 
organization to which the United States is a party, and 
to communicate to that nation or organization such Re- 
stricted Data as Is necessary to : 

"(1) the development of defence plans; 

"(2) the training of personnel in the employment of 

and defence against atomic weapons ; and 
"(3) the evaluation of the capabilities of potential 

enemies in the employment of atomic weapons, 

while such other nation or organization is participating 
with the United States pursuant to an international ar- 
rangement by substantial and material contributions to 
the mutual defence and security : 

"Provided, however. That no such co-operation shall in- 
volve communication of Restricted Data relating to the 
design or fabrication of atomic weapons except with re- 
gard to external characteristics, including size, weight, 
and shape, yields and effects, and systems employed in 
the delivery or use thereof but not including any data 
in these categories unless in the joint judgment of the 
[Atomic Energy] Commission and the Department of 
Defense such data will not reveal important information 
concerning the design or fabrication of the nuclear com- 
ponents of an atomic weapon : And provided further. 



That the co-operation is undertaken pursuant to an agree- 
ment entered into in accordance with section 123." 



Salk Poliomyelitis Vaccine 

statement by Secretary Dulles 

Press release 207 dated April 13 

At the direction of President Eisenhower I am 
making arrangements to transmit the Dr. Fran- 
cis report provided by the National Foundation 
for Infantile Paralysis to other interested conn- 
tries around the world so that they may have the 
benefit of this humanitarian research project as 
well as the information on the Salk formula itself. 

Also at the direction of the President I am con- 
sulting with the appropriate Federal agencies to 
determine the extent to which the vaccine will be 
available for export. 

I plan to see Basil O'Connor, President of the 
National Foundation for Infantile Paralysis, to- 
morrow afternoon to discuss with him this new 
promise of ending this scourge to mankind. 

Department of Commerce Announcement 

The Department of Commerce announced on 
April 13 the establishment of export controls on 
the new Salk poliomyelitis vaccine for immuniza- 
tion against infantile paralysis until such time as 
production is adequate to meet anticipated do- 
mestic and foreign demand. 

Effective April 13, Salk vaccine (Schedule B 
No. 812200) has been added to the Bureau of For- 
eign Commerce Positive List of Commodities re- 
quiring validated licenses for shipment to any des- 
tination except Canada.^ 

This action follows the favorable report of the 
Dr. Thomas Francis committee on the effective- 
ness of the vaccine and the announcement by the 
Department of Health, Education, and Welfare 
that the vaccine will be licensed to U.S. biological 
laboratories for manufacture and sale. 



' 20 Fed. Reg. 2463. 



April 25, 7955 



689 



International Cooperation To Harness the Atom for Peace 

hy Morehead Patterson 

U.S. Representative for International Atomic Energy Agency Negotiations^ 



'VA'Tiere does the United States stand today in 
carrying out tlie program of President Eisenhower 
for international cooperation to liarness the atom 
for peace? 

First: electric power from the atom. This is 
the aspect of the peaceful use of the atom that has 
attracted the greatest public attention. 

It has been the policy of this Government 
throughout the present administration that the 
early development of atomic power is essential and 
that such development should be carried forward 
to the maximum extent possible through private, 
not government, financing. This policy was ini- 
tially applicable to domestic atomic power and did 
not cover nuclear electric power in the interna- 
tional field. 

The Atomic Energy Act of 1954 went farther. 
One of the purposes of that act, as stated in sec- 
tion 3e, is provision of 

a program of international cooperation to promote tlie 
common defense and security and to make availalile to 
cooperating nations tlie benefits of peaceful applications 
of atomic energy as widely as expanding technology and 
considerations of the common defense and security will 
permit. 

I know that many of you are ready to move for- 
ward toward the kind of practical international 
atomic energy cooperation which is im):)licit in the 
Atomic Energy Act and which the President first 
voiced on December 8, 1953. As a businessman 
myself, I know well that there have been uncer- 
tainties and questions which have hampered a vig- 
orous attack on key problems. Some of these 
questions are : 

AVill the Government permit industry in the 

' Address made before the Atomic Industrial Forum at 
San Francisco, Calif., on Apr. 4 (press release 183). 

690 



United States to build research reactors abroad? 
Should we talk to foreign governments and for- 
eign industry about power reactors, or are only 
research reactors possible at this time? Can we 
look forward to selling power reactor equipment 
abroad? Will the State Department and the 
Atomic Energy Commission negotiate the bilateral 
agreements for cooj^eration that are necessary for 
some power reactor assistance? Are there pros- 
pects of getting fissionable material for power re- 
actor jjrojects in other countries if we promote 
these projects? 

I am happy to be able to give you assurances as 
to the basic jiolicy of the Government on such 
matters. I know that there have been indications 
of this policy recently such as the announcement 
by the Atomic Energy Commission that the con- 
struction of research reactors by private firms for 
sale abroad would be encouraged. As v'ou no 
doubt also know, the Commission's negotiations 
have been progressing with Canada, Belgium, and 
the United Kingdom for continued cooperation in 
atomic energy matters. In consonance with the 
President's program, these agreements will pro- 
vide for exchange of technology relating to power 
reactors. 

I wish to emphasize that it is the policy of the 
Government to welcome discussions with other 
countries relating to cooperation and assistance in 
their power reactor planning and programs. In 
these discussions our Government will look toward 
negotiations of agreements for cooperation under 
section 12.3 of the Atomic Energy Act which will 
cover the exchange of power reactor information 
and the sale, lease, or transfer of atomic materials 
and equipment. Furthermore, it is the estab- 
lished i)olicy of the United States Government to 
encourage and facilitate participation of United 

Department of State Bulletin 



Sdites individuals, industry, and private institu- 
limis in atomic power activities abroad. Such 
tiM'ouragement will include government aiTange- 
lucnts and authorizations as required by the 
Atomic Energy Act of 1954. 

This means that the Govermnent will do every- 
thing it can to facilitate the international arrange- 
ments which you will need to enter into contracts 
t(j build power reactors abroad. Each negotiation 
will have problems of its own, and it will be neces- 
sary to obtain individual authorization and license 
from the United States Government. The Gov- 
ernment, of course, cannot assure you that it will 
approve every project that you initiate. The lim- 
itations on your activities will be those dictated by 
prudent security considerations. One obvious 
limitation is that the fissionable materials pro- 
vided for power reactors abroad must not unduly 
impoverish our stockpile. The decision on such 
matters must be left to the unfettered judgment 
of those charged with that responsibility in the 
United States Government. But what you have 
today is a green light to go forward. Your inter- 
national problems are assured of sympathetic 
hearing. 

The discussions leading to this decision high- 
lighted a number of points. As the years go by, 
atomic power will supplement other sources of 
power and will play a useful and increasingly 
important role— (1) atomic power will become 
increasinglj' sound economically as we solve diffi- 
cult technological and engineering problems; (2) 
the development of economically competitive 
atomic power is not necessarily a panacea for all 
the world's ills, nor will it revolutionize the 
world's economy; (3) in underdeveloped areas 
the availability of atomic power will not ease the 
basic problem of finding capital for economic de- 
velopment; (4) atomic power plants will not 
make obsolete modern efficient hydroelectric and 
steam electric plants; (5) the principal causes for 
high foreign-power cost to the consumer are the 
transportation and production of fuel, old, ineffi- 
cient plants, small units which are less efficient and 
economical tlian large plants, low rates of use with 
resultant high unit cost of power, high cost of 
investment capital and power distributing sys- 
tems. As opposed to a new conventional plant, 
an atomic plant would have a superior effect upon 
only the cost of transportation and production of 
fuel. 



In teclmologically advanced countries these 
facts are recognized. In some less advanced 
countries, however, there is a tendency to view 
United States proposals for international sharing 
of benefits of atomic power as a cure-all for basic 
economic troubles. We do not want to hold out 
false hopes. But while atomic power is not a 
panacea, it is a tremendously worthwhile objective 
and will make a great contribution in the future 
to world prosperity. 

Deeds, Not^Words 

So much for our policy, our aim, our goal. All 
the world echoes the President's famous challenge 
"deeds, not words," and we must be prepared to 
accept such a challenge as well as give it. The 
way to pay off is in "hardware" and soon. For 
every promise has three dimensions, one of which 
is when. There is nothing so concrete as a well- 
laid cornerstone; and a reactor gone critical can- 
not be denied. How are we doing in clearing the 
underbrush ? The world camiot realize the bene- 
fits of the atomic power until the number of quali- 
fied engineers and technicians all over the world 
who know how to live with and use the atom have 
been increased many fold. We are attacking this 
problem on three fronts. 

1. In the field of training the United States 
Atomic Energy Commission on March 13 set up 
a reactor training school, which is now in session 
at the Argonne National Laboratory near Chi- 
cago.- The current course, which began March 
14, includes among its membei-s 31 students from 
19 foreigii countries. Every continent in the 
world is represented in this school. A training 
course in radioisotopes techniques will commence 
at the Oak Ridge Institute of Nuclear Studies 
next month. This coui'se will include 32 students 
from abroad representing from 20 to 25 countries. 
Arrangements have been completed for other 
courses of instruction in connection with the atom, 
some sponsored directly by the Atomic Energy 
Commission and others by our universities. We 
have thus made a start in the direction of develop- 
ing engineers and technicians, but it is only a start. 

Each research reactor will require for its opera- 
tion several engineers and technicians of varying 
degrees of proficiency. Power reactors will re- 



^ For address by Ambassador Patterson at the opening 
of this school, see Bulletin of Apr. 4, 1955, p. 553. 



AprU 25, 1955 



691 



quire many more. This is the immber of operators 
necessary when the machine is functioning 
smoothly. "\Mien there is trouble, that number 
must be substantially increased. 

All this points out the need for a great expansion 
of the training program. Since the United States 
Government cannot readily take on the whole job, 
I foresee that our universities will develop many 
courses roughly pai-allel to those at Argonne Na- 
tional Laboratory and at Oak Ridge. It is a large 
task and a worthwhile one. 

2. In the field of dissemination of information, 
the United States Atomic Energy Commission 
has assembled a number of extensive libraries of 
unclassified information concerning the atom. 
Stated in physical dimensions, each one of these 
libraries is the equivalent of more than 300 lineal 
feet of published reports and over 200,000 index 
cards. Libraries have already been presented to 
Japan, Italy, and France, and arrangements are 
pending to furnish additional libraries to coun- 
tries and universities all over the world. The 
significance of the distribution of these libraries 
is obvious. Students all over the world will be 
able on their own initiative to develop a good 
background knowledge of atomic matters. 

3. Another method of spreading knowledge 
throughout the world is by encouraging other 
countries to set up research reactors. These re- 
search reactors will make possible production 
abroad of a number of important isotopes. They 
will permit the testing of certain materials to 
determine their nuclear properties and to detect 
radiation damage. Most important, they will fa- 
miliarize the engineers and technicians abroad 
with the type of problems which they will en- 
counter at a later date in connection with the 
operation of full-scale power reactors. They are 
a necessary preliminary to full-scale power 
reactors. 

Current Bilateral Negotiations 

The United States has newly entered into bi- 
lateral negotiations with three countries for agree- 
ments of cooperation as required by the Atomic 
Energy Act. These are in addition to the Aec 
negotiations with the U.K., Canada, and Belgium. 
These agreements permit transfer to the countries 
executing them of the amounts of fissionable ma- 
terials necessary to fuel research reactors. These 
agreements — I call them "green" bilaterals — in 



connection with research reactors do not involve 
any extensive security considerations and can be 
comparatively simple. We expect in the near fu- 
ture to enter into negotiations with additional 
countries for the same purpose, and we hope that 
quite a number of them will be completed and 
executed prior to the adjournment of Congress 
this summer. We are prepared to discuss extend- 
ing theise agreements to cover power-reactor 
assistance. 

Another example of "deeds, not words" took 
place just a week ago when the Joint Committee 
of the Congi'ess named an eight-member panel to 
measure the impact of peaceful applications of 
atomic power on all phases of United States life 
and to recommend legislative and policy actions 
to guide peaceful atomic development. The 
members of this panel are outstanding American 
leadei-s. The chairman of this panel is a pub- 
lisher, and the other members include business- 
men, scientists, and engineers. I congratulate 
the Joint Congressional Committee on Atomic 
Energy for taking a constructive and helpful 
step. 

I 

International Atomic Energy Agency 

The President in his si^eech to the United Na- 
tions on December 8, 1953, called for the forma- 
tion of an international agency to promote the 
peaceful use of the atom. I am frequently asked 
why we should have an International Atomic En- 
ergy Agency. 'VVliy should not the United States 
pursue its program of international cooperation 
through direct negotiations with friendly states? 
\\liat role will the international agency plaj' in 
this field of international cooperation to harness 
the atom for peace ? 

Let me make one thing completely clear. The 
international agency is intended to — and indeed 
can — take over only part of the task of develop- 
ing peaceful uses of the atom. We shall still have 
national programs in the United States, the 
ITnited Kingdom, Franc«, Canada, Norway, Italy, 
India, Israel, and other countries — and also in the 
Soviet Union, in the strictest secrecy behind its 
Iron Curtain. After the formation of an inter- 
national agency we shall have regional groups 
such as Cern [Conseil europeen pour la recher- 
che nueUaire^ devoting itself to research on the 
atom, and we shall have Unesco carrying out a 



692 



Department of State Bulletin 



!> Ingram to extend the availability and use of 
radioisotopes in scientific problems. 

Despite all these national, regional, and inter- 
national efforts, the problem of an international 
agency will definitely not be to find something to 
ill) but time to do it in. There is so much to do 
tliat even with the most optimistic estimate of 
the personnel and financial resources available to 
the agency it would be able to carry out only a 
part of the total task. For example, the agency 
can usefully supplement the activities of the 
United States in collecting and distributing li- 
braries on atomic matters. We would hope that 
other countries, including the Soviet Union, will 
make available to the agency the materials which 
they have collected. The agency could assemble 
all of the materials from all countries and ar- 
range for their distribution in various areas of 
the world. The libraries would then be truly in- 
ternational libraries. 

In the field of training we anticipate that other 
fduntries, as well as the United States, the United 
Kingdom, and Canada, will have training pro- 
Lira ms open to the nationals of other states. We 
liuije perhaps the Soviet Union will make available 
to the world the results of its program to harness 
the atom for jjeace, which are described in such 
vivid and glowing terms in the Soviet press. An 
international agency could deal with the problem 
of coordinating all these national progi-ams and 
could make suggestions to assure that as many 
states as possible will benefit from the training 
program. 

Most important, the international agency 
would play the major role in making available 
power-reactor teclinology and fuel and in pro- 
moting a program to locate power reactors and re- 
seai'ch reactors throughout the world in the 
places where they could do the most good. 

Then, as the President pointed out, international 
cooperation in the agency would "open up a new 
channel for peaceful discussion, and initiate at 
least a new approach to the many difficult prob- 
lems that must be solved in both private and pub- 
lic conversations, if the world is to shake off the 
inertia imposed by fear, and is to make positive 
progress toward peace." 

We are now making definite progress in our 
efforts to form an agency. Commencing in De- 
cember 1953 and extending to the first half of 
1954, we engaged in negotiations with the Soviet 

April 25, 1955 



Union which got us exactly nowhere. The series 
of exchanges, which were published in the United 
Nations last September, led to the decision of the 
President of the United States last August not to 
allow his proposal to die because of the negative 
Soviet attitude. He said : "Although progress on 
this plan has been impeded by Soviet obstruction 
and delay, we intend to proceed — with the co- 
operation and participation of the Soviet Union if 
possible, without it if necessary." ^ 

We sincerely hope that it will be possible for the 
Soviet Union to participate in the international 
agency. The accomplislunents and potential of 
the Soviet Union in the field of atomic energy are 
great, and it could make a real contribution. 
Furthermore, the President has constantly em- 
phasized his hope that peaceful cooperation in this 
field would lead to cooperation in other fields and 
the solution of some of the vast problems that have 
created international tension. However, it is es- 
sential that the agency come into being in the near 
future and that we concentrate our program on 
what, to use the words of Ambassador Lodge in 
the United Nations, is "feasible and do-able." 
That objective would be defeated by excessively 
technical discussions and by long delays in the 
formation of the agency. That would be too high 
a price to pay for Soviet cooperation. 

We have made definite progress in drafting a 
statute for the agency which takes into considera- 
tion many suggestions made by a number of states 
to us both directly and in the debates in the United 
Nations last fall. Perhaps I could summarize the 
existing status of the agency by saying that it is 
about to "pop." * 

The Program for 1955 

This, then, is a thumbnail sketch of our program 
for 1955— a program directed mainly toward 
spreading information throughout the world, to- 
ward developing technical know-how in all coun- 
tries, and toward creating the first ties between 
ourselves and other countries which will lead to 
broader cooperation as their programs build up. 
This program has three main characteristics, all 
in the American tradition. 



' Ihid., Sept. 13, 1954, p. 365. 

'For details of plans for U. S. participation in the 
International Conference on the Peaceful Uses of Atomic 
Energy at Geneva, Switzerland, Aug. 8-20, 1955, see ibid., 
Mar. 14, 1955, p. 444. 

693 



1. It is a progrfini of peace. The harnessing of 
the atom for peaceful purposes is a natural and 
inevitable step for the American people. It is an 
expression of their deep and genuine hatred of 
•war and their devotion to peace. History has 
shown tliat American civilization flourishes in 
peace. War, and especially war in the 20th cen- 
tury, must bring with it the type of economic regi- 
mentation which is destructive of the finest and 
most productive values in American life. It was, 
therefore, entirely in the American tradition for 
the President on behalf of the American people 
to offer to share the benefits of the atom with their 
friends abroad. 

Similarly, it was natural and easy, though ad- 
mittedly naive, for the American people to dis- 
arm rapidly soon after the end of both world 
wars. "\^niat other country could have demobilized 
eight million men in 10 months? It was also nat- 
ural and easy for the American people to offer to 
give up their most powerful weapon of war — the 
atom bomb — and internationalize atomic energy, 
as we did under the Baruch plan. Despite the fact 
that the United States had a monopoly of that 
weapon at that time, the sole condition made was 
that a foolproof system of safeguards be estab- 
lished. Those were easy, unhesitant decisions for 
the United States. The difiicult and trying decision 
is to spend so much time and effort in the sterile 
business of keeping pace with the warlike gestures 
and preparations of the aggressors. And yet, we 
know that we must do that also for the general 
security. 

2. It is a truly international program. Inter- 
national cooperation is part of our American 

heritage, and nowhere has this been more evident 
than in the development of the knowledge of the 
atom. The development of the atom would have 
been impossible without international cooperation. 
The little group that witnessed the first chain re- 
action in December 1942 under a football stadium 
in Chicago was headed by Fermi from Italy. It 
included, in addition to the brilliant group from 
the United States, Szilard and "Wigner, who were 
born in Hungary, and Zinn and others from Can- 
ada. Their M'ork rested on scientific studies pur- 
sued all over the world and linked to such names 
as Einstein, Ilahn, and Strassmann from Ger- 
many, Nils Bohr from Denmark, Rutherford from 
the United Kingdom, and the Curies from France 
and Poland. 
Thus, when it first became possible to initiate a 

694 



program to harness the atom for peace, it was 
natural that the President should call for inter- 
national cooperation to share its benefits. The 
advantages that can be gained from nuclear fis- 
sion should not be the exclusive possession of a 
few countries that now have sufficient technical 
knowledge and know-how. On the contrary, that 
know-how should be spread throughout the world 
so that all countries could share in the benefits. 

3. And even more characteristic of the Ameri- 
can way of doing things, the benefits of this pro- 
gram will be realized by countries throughout the 
world from their own efforts. The various coun- 
tries will have their own technicians who can de- 
velop in each country the programs best suited to 
meet the needs of the country. This and not a 
give-away plan is the truly American way of 
spreading the benefits of the peaceful use of the 
atom throughout the world. This is the Ameri- 
can way which, to use the President's words, "will 
lead this world out of fear and into peace." It is 
the American answer to the pledge of the Presi- 
dent "to devote its entire heart and mind to find 
the way by which the miraculous inventiveness of 
man shall not be dedicated to his death, but con- 
secrated to his life." 

Now let us examine the Soviet description of 
this program : 

There is no doubt but that the proposals made by the 
American President were only of an ostentatious propa- 
ganda character. In reality, the ruling circles of the 
United States ... do not even think of international 
cooperation in the field of the peaceful use of atomic 
energy . . . the striving to gain control of atomic raw 
materials and their use in other countries is the real 
motive of all American maneuvers on the problem of the 
peaceful use of atomic energy. 

The programs which I have described to you 
give the lie to these charges from Moscow. If one 
looks for a program motivated by interest in get- 
ting raw materials, he has only to look at the 
U. S. S. R. j^rogram of assistance in this field. 
On January 17, the Soviet Union, aware, no doubt, 
of how far it had fallen behind the United States 
in making available to the rest of the world the 
results of atomic research, announced in Moscow 
that it too had a program in the peaceful uses of 
atomic energy. It is significant that the Soviet 
program is so far confined to China, Poland, the 
German Democratic Republic, Czechoslovakia, 
and Rumania — a sharp contrast to the United 
States program, which extends to every continent. 

Department of Sfafe Bulletin 



I think I do not need to comment on the following 
sentence from the text of the Soviet announce- 
ment: 

At the same time account Is taken of the fact that the 
aforementioned countries are supplying relative raw ma- 
terials to the U. S. S. R. 

Last summer at the London disarmament talks 
we noticed that Mr. Malik, the Soviet representa- 
tive, prefaced every assertion with one of the fol- 
lowing leads: either "there can be no doubt," or 
"as is well known," or again, "no one can deny." 
That seems to be a fine old Soviet custom. And 
again he frequently referred to the "ruling circles 
in the United States"- — another fine old custom. 
You will notice that the Izvestia statement uses 
this idiom where it says, "There is no doubt, that 
the ruling circles of the U. S., etc." 

So that there cannot be any misunderstanding 
in Moscow tonight, I say to you and to them, "As 
is well known, there can be no doubt, and no one 
can deny that the ruling circles of the United 
States are doing everything in their power to 
spread throughout the world the benefits of Atoms 
for Peace." 



Soviet Editors Cancel Plans 
To Visit United States 

Press release 212 dated April 16 

The Soviet Ministry of Foreign Affairs an- 
nounced on April 16 that the 11 editors of Soviet 
student and youth newspapers have decided not to 
visit the United States since they are unwilling 
to comply with the legal requirements for the is- 
suance of nonofllcial visitors' visas (i. e., signature 
of visa application form before a consular offi- 
cer and fingerprinting) which are applied without 
discrimination all over the world and are em- 
bodied as mandatory provisions of the U. S. 
Immigration and Nationality Act. 

It will be recalled that the State Department on 
March 10, 1955, authorized the American Embassy 
in Moscow to issue visas to the 11 editors for a 
visit to the United States.^ At the request of 
the Department, the Institute of International 
Education undertook to make the necessary ar- 
rangements for the trip and had recently made 
plans for the Soviet visitors to see educational 

" BuxLETiN of Mar. 21, 1955, p. 487. 



institutions in many parts of the country. These 
plans must now be canceled. 

The U.S. Government regrets that the trip of 
the Soviet editors will not be realized. 

Purpose of U.S. Economic Aid 
to South and East Asia 

Statement hy the President 

White House press release dated AprU 11 

I shall submit to the Congress next week my 
recommendations for our nation's mutual security 
program, including economic aid to the free 
nations of South and East Asia. 

By tradition and conviction, our nation is com- 
mitted to the independence and self-determina- 
tion of all peoples. This determination, rooted 
in our own revolt against colonial status, is ex- 
emplified by our encouragement of Cuba and the 
Philippines to assume full freedom and control 
of their own destiny as independent nations. 

The United States, moreover, is dedicated to 
the furtherance of opportunity for free nations 
to improve their economic well-being. We con- 
sistently encourage their efforts to meet the needs 
and to satisfy the aspirations of their peoples. 

Throughout our history, and especially in the 
postwar years, the American people have made 
substantial personal sacrifices so that other peo- 
ples may enjoy internal stability and hope for 
the future. Cooperation has been offered by our 
people, not to preserve the status quo but to 
encourage progress. 

In accord with our political and spiritual heri- 
tage, the United States is ready to intensify its 
cooperation with the free nations of South and 
East Asia in their efforts to achieve economic 
development and a rising standard of living. 
This is in harmony with our programs elsewhere. 

The motivation behind this cooperation is two- 
fold: our fixed belief in the worth and dignity 
of the human individual whatever his race or 
flag may be, and our dedication to the principle 
that the fruits of national growth must be widely 
shared in every society. 

As a people, we insist that the dignity of the 
individual and his manifold rights require for 
their preservation a constantly expanding eco- 
nomic base. We are convinced that our own 
continued economic, cultural, and spiritual prog- 



AptW 25, 1955 



695 



ress are furthered by similar progress everywhere. 
For this reason we stand ready to work in genuine 
cooperation and partnership with the free peoples 
of the world — in a cooperation and partnership 
which does not exact from them any sacrifice of 
their independence, in thought or in action, but 
rather contributes to their progress and freedom 
as well as our own. 

I will submit shortly certain recommendations 
to the Congress as a basis for our part in this 
cooperation. 

We seek to evolve a consistent and stable eco- 
nomic policy which will assist free nations in 
their efforts to achieve a sound growth for their 
economies. 

The peoples of the world, dedicated to the 
preservation of peace, recognize that man must 
go forward and that the interests of all free peo- 
ple are indivisible. America's foreign economic 
policy expresses that attitude. 

FOA Loan to Iran 

An agreement for a $32 million loan to Iran 
was announced on April 4 by the Foreign Opera- 
tions Administration. The agreement was signed 
by Nasrollah Entezam, the Iranian Ambassador 
to the United States, and Glen E. Edgerton, 
chairman of the board and president of the 
Export-Import Bank of Washington. 

FoA loans, made under provisions of section 
505 of the Mutual Security Act, are negotiated by 
the Department of State and Foa. Foa is re- 
sponsible for disbursement of the loans, and other 
administration is handled by the Export-Import 
Bank. 

Section 505 provides that, of funds made avail- 
able to FoA this year for assistance to foreign 
countries, the equivalent of $200 million or more, 
including foreign currencies received from the 
sale of surplus agricultural commodities, is to be 
in the form of loans. 

The Iranian loan, which is repayable in U.S. 
dollars over a 25-year period at an average rate 
of interest of 2.41 percent, is part of Foa's $74.3 
million allotment to that country for technical 
cooperation and development assistance during 
the current fiscal year. The loan funds will help 
Iran carry out its extensive plan for economic 
development. 

The overall U.S. program of economic assist- 



ance to Iran during the current year totals $127.3 
million. This total includes the new Foa loan, 
an Foa grant of $42.3 million, and a $53 million 
Export-Import Bank loan, largely for develop- 
ment projects. 

Detailed plans for projects will be formulated 
by the Government of Iran ; negotiations between 
Iran officials and a mission from the Export- 
Import Bank will begin in the near future. 



U. S. Position on Conservation 
of Fisiieries Resources 

The United States will participate in the Inter- 
national Technical Conference on the Conserva- 
tion of the Living Resources of the Sea. This 
Conference, to be convened at Eome on April 18, 
1955, pursuant to a resolution of the General As- 
sembly of the United Nations adopted at its ninth 
session, December 14, 1954,^ will study the problem 
of the international conservation of the living re- 
sources of the sea and make appropriate scientific 
and technical reconmiendations. 

The subject of fisheries is one of the principal 
aspects of the problems of the regimen of the high 
seas which are currently under consideration in 
various organs and agencies of the United Nations 
and the Organization of American States. Con- 
flicts of interest over fisheries have in some in- 
stances given rise to controversies between states 
over the right of vessels to fish in certain waters. 
In other instances, the existence of conflicting in- 
terests has stimulated the negotiation of construc- 
tive international agreements for the orderly reg- 
ulation of fisheries in the interests of all states 
directly concerned. 

The principal cause for the development of con- 
flicts of interest between states over the subject of 
fisheries during recent years has been the in- 
creased interest of coastal states in the conserva- 
tion of fishery resources in waters off their coast. 
The actual or potential economic importance of 
fishery resources has received wider recognition 
during the last decade than formerl}'. Public in- 
terest in coastal states has been aroused over the 
possibility that these important resources may be 
exliausted or severely depleted by unrestricted ex- 
ploitation. Development of more efficient meth- 
ods of exploitation by countries long used to fish- 

' Bulletin of .Tan. 10, 1955, p. 66. 



696 



Department of Sfafe Bulletin 



ing on the high seas has contributed to the desire 
of coastal states to jjrotect and conserve the pro- 
ductivity of tlie resources of the adjacent sea. At 
the same time, the inadequacy of contemporary 
scientific knowledge regarding many aspects of 
the problem of conservation has aroused a re- 
newed interest in promoting further scientific 
investigations. 

Efforts by coastal states to impose regulations 
upon fishing in the high seas adjacent to terri- 
torial waters have conflicted with the rights of 
other nations to fish upon the high seas. Under 
the long-established and universally recognized 
principle of the freedom of the seas, the vessels and 
nationals of all states have rights not only of navi- 
gation but also of fishing in the high seas, i. e., in 
waters outside of the belt of coastal waters which 
under international law has traditionally been rec- 
ognized as territorial waters. The right of the 
nationals of any state to fish upon the high seas is 
thus based upon a fundamental principle of inter- 
national law. The Government of the United 
States recognized this fact in the proclamation on 
fisheries ^ issued by the President in 1945, wliich, 
when stating certain interests of the United States 
in conserving fishery resources, specifically recog- 
nized the rights of other nations to fish in the high 
seas off its coasts. 

The problem now facing governments through- 
out the world is how to reconcile the legitimate in- 
terests of the coastal state in desiring to maintain 
the productivity of fishery resources off its coast 
with the established right of all states to fish 
fi-eely upon the high seas. Some states have at- 
tempted, by unilateral action, to impose control 
on fishing activities in the high seas off' their coasts 
by claiming sovereignty or other forms of juris- 
diction over such waters. Other states have rec- 
ognized the interest of all concerned by negotiat- 
ing agreements having as their objective the man- 
agement of the exploitation of the fisheries re- 
sources in such a way as to maintain their maxi- 
mum productivity for the beneficial use of all the 
interested parties. 

The United States Government is firmly con- 
vinced that the latter approach is mox-e likely to 
achieve i^ractical and beneficial results from the 
scientific and economic viewpoint and, at the same 
time, avoid serious breaches of international law 
which would adversely affect other interests asso- 



= Ihid, Sept. 30, 1945, p. 487 ; 10 Fed. Reg. 12304. 



ciated with the principle of the freedom of the 
seas as well as rights to fish. 

A consideration of important technical factors 
affecting the problem of fishery regulation readily 
reveals serious deficiencies in any approach to this 
problem which would give the coastal state alone 
the right to regulate the exploitation of fishery 
resources in high seas adjacent to its territorial 
waters. If such a principle were adopted, the 
responsibility for maintaining the productivity of 
the fishery resources would devolve upon each 
coastal state. Yet there are many coastal states 
which lack the technical resources for the study 
of problems associated with the maintenance of 
fisheries and would therefore lack the basic infor- 
mation on which to formulate conservation pro- 
grams. Moreover, the study of fishery problems 
often involves elaborate and extensive operations 
of laboratories, laboratory ships, and other facili- 
ties which would be beyond the financial possibili- 
ties of many coastal states to develoi^ or maintain. 
Further costs would be involved in the unilateral 
policing of high seas areas for the purpose of en- 
forcing any regulations which might be adopted. 
Finally, it must be recognized that the very nature 
of fishery problems defies treatment along strictly 
national lines: many stocks of fish, particularly 
those having major economic importance, nor- 
mally move and exist in large areas of the sea and 
can, therefore, neither be studied nor controlled 
within the waters adjacent to individual coastal 
states. 

Economic factors likewise emphasize the in- 
adequacy of a principle under which individual 
coastal states would unilaterally assume responsi- 
bility for the control of fisheries in the high seas 
off their coast. The purpose of fishery develop- 
ment is to produce fish, primarily for food, 
whether for consumption by the coastal state itself 
or for sale in other markets. Experience has 
demonstrated that the possibility of successful 
exploitation of fishei-y resources depends upon the 
production of food at a price which will create and 
sustain a market. There are already many evi- 
dences of efforts to develop fishery resources which 
have failed because of an inability to produce fish 
at a sufficiently low price. 

Low costs in the production of fish require sus- 
tained operations of boats and other facilities, 
including packing plants, throughout all or most 
of the year. This in turn requires in many cases 



April 25, 1955 



697 



the development of fishing fleets capable of rang- 
ing beyond the limits of coastal states — particu- 
larly the smaller coastal states — in pursuit of 
stocks of fish. If the high seas were to become 
divided into unilaterally controlled areas, each 
coastal state preventing others from entering the 
■waters under its control, the possibilities of de- 
veloping economically efficient industries capable 
of converting the living resources of the seas into 
products of use to man would be severely impeded. 

Practical considerations such as those men- 
tioned above are in the opinion of the United 
States of great importance in determining the 
suitability of any method of resolving the conflicts 
of interest to which reference was made earlier in 
this summary. However, juridical aspects must 
also be taken into account in devising a satisfac- 
tory solution. Under the principle of the 
freedom of the seas a vessel fishing outside the ter- 
ritorial waters of another state has a well-estab- 
lished right in international law to conduct its 
operations there. This right cannot be impinged 
upon or limited by the declarations of one coastal 
state or a group of such states. On the other 
hand, the United States Government is entirely 
ready to recognize that the legitimate interest of 
coastal states must be given weight in establish- 
ing a system of law with reference to fisheries 
conservation which will resolve the inherent con- 
flict of interests discussed herein. 

Freedom of the seas includes not only the right 
to navigate on the high seas but also the right to 
fish freely in those waters and enjoy certain other 
rights. Action taken by the coastal state to limit 
freedom of the seas with respect to fisheries can- 
not fail to have wide repercussions upon the 
interests and rights of other states. 

There is not, in the view of the United States, 
any fundamental and legitimate interest of 
coastal states, or of other states, which cannot 
be satisfactorily reconciled through a procedure 
of international agreement based upon a nego- 
tiation among states enjoying equal sovereignty 
and equal rights. Already the United States 
Government has enjoyed the beneficial results of 
agreements with certain other states respecting 
fisheries under which the resources of certain areas 
of the seas of interest to the states concerned have 
been developed, increased, and maintained to the 
economic advantage of all. Under such conserva- 



tion agreements, the resources of more than one 
state have been brought to bear upon the study 
and solution of technical problems. Facilities ol 
the directly interested states have been used in the 
development and enforcement of regulations foi 
the exploitation of such resources. Methods foi 
the settlement of points on which agreement is 
not reached through direct negotiation have beer 
established in advance, in keeping with the prin- 
ciple of the peaceful solution of international 
differences. 

The opinion has been expressed by some states 
that solution of international conservation prol> 
lems by agreements among all interested state; 
is severely handicapped or in some cases impos 
sible owing to the fact that such agreements an 
voluntary and may be invalidated by failure oJ 
a single state to cooperate. The United State; 
Government recognizes that this is a problem oi 
some importance. It is under active study by th( 
International Law Commission of the Unitec 
Nations and will be considered by the United 
Nations General Assembly at a later date. Tht 
United States Government has cooperated anc 
will continue to cooperate with other government; 
in supporting and encouraging the Internationa 
Law Commission and the General Assembly ir 
developing and obtaining acceptance of a satis- 
factory set of international principles for fishery 
conservation to meet this problem. 

The LTnited States Government is convinced, on 
the basis both of law and of practical experience 
that the most satisfactory avenue for the solution 
of growing conflicts of interest over fishery re- 
sources lies in the development of conservation 
agreements among interested states. It is likewise 
convinced that continued efforts by coastal states 
to extend unilaterally their jurisdictional conti'ol 
over areas recognized under international law as 
being high seas cannot fail to aggravate existing 
international disputes and create new ones. It is 
the earnest desire of the United States to avoid 
such disputes and to assist in achieving the legiti- 
mate aim of all interested parties, namely, the 
maintenance of the productivity of the fishery 
resources for maximum beneficial human use. 

• The above smnmary was frepared in tfie 
office of the Special Assistant to the Under 
Secretary for Fisheries and Wildlife. 



698 



Depat\meni of Sfafe Bullefin > 



U.S. Views on Draft Articles 
on Regime of Territorial Sea 

The Secretary-General of the United Nations on 
March 29 ^ circulated the texts of comments re- 
ceived from member governments on provisional 
articles concerning the regime of the territorial sea 
which the International Laio Commission had 
^ adopted at its sixth session in 1954- Following is 
I the text of the reply of the United States. 

I Note Veebale From the Permanent Delegation 
i OF THE United States to the United Nations 
i Dated 3 February 1955 

I The Representative of the United States of 
America to the United Nations presents his com- 
pliments to the Secretary-General of the United 
Nations and has the honor to refer to the note 
LEG 29-2/9/01, dated August 31, 1954, from the 
Principal Director in charge of the Legal Depart- 
ment, concerning the Draft Articles on the Eegime 
of the Territorial Sea of the International Law 
Commission set out in the Eeport covering the 
work of its sixth session, June 3-July 28, 1954.^ 

The Commission prepared a provisional text for 
all but four of the articles of the proposed draft 
and requested the comments of Governments on 
these articles. Among the articles for which no 
text has yet been drafted is Article 3 concerning 
the breadth of the territorial sea. With respect 
to this article, the Commission requested views 
and suggestions which might help it to formulate 
a concrete proposal. 

So far as concerns the articles now drafted, the 
Government of the LTnited States believes that 
they constitute, as a whole, a sound exposition of 
the principles applicable to the regime of the 
territorial sea in international law. The Govern- 
ment of the United States has, however, certain 
suggestions to make with respect to Articles 5 and 
19. 

Article 5 provides inter alia that where circum- 
stances necessitate a special regime because the 
coast is deeply indented or cut into "or because 
there are islands in its immediate vicinity" the 
base line ma}' be independent from the low-water 
mark and may be a series of straight lines. The 
Government of the United States presumes from 



' U.N. doc. A/CN.4/90. 
' U.N. doc. A/2693. 

April 25, 1955 



the comments which follow the article that it was 
not intended that the presence of a few isolated 
islands in front of the coast would justify per se 
the use of the straight line method. The islands, 
as the comments indicate, would have to be related 
to the coast in somewhat the same manner as the 
skjaergaard in Norway. In the view of the Gov- 
ernment of the United States, the words "or be- 
cause there are islands in its immediate vicinity" 
are too general and do not convey as accurately as 
desirable what the Commission apparently had in 
mind. 

With respect to Article 19, the Government of 
the United States is satisfied that the text incor- 
porates principles upheld by the International 
Court of Justice in its judgment of April 9, 1949, 
in the Corfu Channel case, but it believes that the 
comments on this article should include a short 
statement of the factual circumstances upon which 
the court was ruling, since such a statement would 
point up and illustrate the significance and mean- 
ing of the principles embodied in Article 19. 

So far as concerns the question of the breadth 
of the territorial sea and the various suggestions 
set out in paragraph 68 of the Report, the guiding 
principle of the Government of the United States 
is that any proposal must be clearly consistent with 
the principle of freedom of the seas. Some of the 
proposals amount to a virtual abandonment or 
denial of that principle. In this connection it 
must be pointed out that the high seas are an area 
under a definite and established legal status which 
requires freedom of navigation and use for all. 
They are not an area in which a legal vacuum 
exists free to be filled by individual states, strong 
or weak. History attests to the failure of that 
idea and to the evolution of the doctrine of the 
freedom of the seas as a principle fair to all. The 
regime of territorial waters itself is an encroach- 
ment on that doctrine and any breadth of terri- 
torial waters is in derogation of it ; so the deroga- 
tions must be kept to an absolute minimum, agreed 
to by all as in the interest of all. 

That the breadth of the territorial sea should 
remain fixed at three miles, is without any question 
the proposal most consistent with the principle of 
freedom of the seas. The three-mile limit is the 
greatest breadth of territorial waters on which 
there has ever been anything like common agree- 
ment. Every one is now in agreement that the 
coastal state is entitled to a territorial sea to that 

699 



distance from its sliores. There is no agreement 
on anything more. If there is any limit which 
can safely be laid down as fully conforming to in- 
ternational law, it is the three-mile limit. This 
point, in the view of the Government of the United 
States, is often overlooked in discussions on this 
subject, where the tendency is to debate the re- 
spective merits of various limits as though they 
had the same sanction in history and in practice 
as the three-mile limit. But neither 6 nor 9 nor 
12 miles, much less other more extreme claims for 
territorial seas, has the same historical sanction 
and a record of acceptance in practice marred by 
no protest from other states. A codification of 
the international law applicable to the tei'ritorial 
sea must, in the opinion of the Government of the 
United States, incorporate tliis unique status of 
the three-mile limit and record its unquestioned 
acceptance as a lawful limit. 

This being established, there remains the prob- 
lem of ascertaining the status of claims to sover- 
eignty beyond the three-mile limit. The diversity 
of the claims involved bears witness, in the opinion 
of the Government of the United States, to the 
inability of each to command the degree of ac- 
ceptance which would qualify it for possible con- 
sideration as a principle of international law. Not 
only does each proposed limit fail to command the 
positive support of any great number of nations, 
but each has been strongly opposed by other na- 
tions. This defect is crucial and, in view of the 
positive rule of freedom of the sea now in effect 
in the waters where the claims are made no such 
claim can be recognized in the absence of common 
agreement. A codification of the international 
law applicable to the territorial sea should, in the 
view of the Government of the United States, 
record the lack of legal status of these claims. 

While unilateral claims to sovereignty or other 
forms of exclusive control over waters heretofore 
recognized as high seas cannot be regarded as 
valid, this is not to say that the reasons, legitimate 
or otherwise, which motivate such claims should 
be ignored. In some cases, at least, these attempts 
of the coastal state to appropriate to its exclusive 
use large areas of the high seas seem to be based 
on a real concern for the conservation of the re- 
sources of the sea found in such waters. Efforts 
of the Commission and of the nations to settle 
such problems should be unceasing. But the rem- 
edy is not unilateral action in defiance of long es- 
tablished and sound principles of law applicable to 

700 



other matters. In many cases the nations taking 
such action would seem to have little to gain from 
abandonment of such principles and reversion to a 
condition of anarchy on the high seas. The 
sounder approach would appear to be an effort to 
reach agreement on the principles applicable to 
the real matters at issue, such as conservation of 
natural resources and rights to fish. 




Exchange of Ratifications of Highway 
Conventions With Panama 

Press release 200 dated April 11 

On April 11 at Panama City the U.S. Ambas- 
sador to Panama, Selden Chapin, and the Minister 
of Foreign Affairs of Panama, Octavio Fabrega, 
exchanged documents of ratification of the Con- 
ventions on Highways and the Colon Corridor. 
These agreements were originally signed by rep- 
resentatives of both countries in 1950.^ They have 
now been ratified by both Governments. 

The Highways Convention grants the United 
States free use of Panamanian public roads, with 
the Republic of Panama covering maintenance 
costs of such roads while the United States agrees 
to maintain the Trans-Isthmian Highway in good 
order. Prior to the signing of the convention, 
maintenance costs of public roads in Panama used 
periodically by the Armed Forces of the United 
States were shared by the United States with the 
Eepublic of Panama. 

The Colon Corridor agreement, through bound- 
ary adjustments, places the Trans-Isthmian High- 
way solely within Panamanian territory. It also 
gives to the city of Colon, for the first time since 
the construction of the Canal, a direct connection 
with the rest of the Eepublic of Panama over a 
route under Panamanian jurisdiction. 

The exchange of documents is another mani- 
festation of the cordial relations which have been 
maintained between the Eepublic of Panama and 
the United States over a long period of years. 

' Bulletin of Sept. 2.5, 1950, p. 500. 

Department of Sfafe Bulletin 



U. S.-Mexican Agreement 
on Migratory Workers 

Pri ss release 210 dated April 15 

Agi-eement between the Governments of the 
United States and Mexico on methods of improv- 
ing operations through wliich Mexican migi'atory 
workers are temporarily employed m U.S. agri- 
culture was formalized on April 14, 1955, at 
]\I(>xico City with an exchange of notes signed by 
Francis "\^niite, American Ambassador, and Luis 
l^ulilla Nervo, Mexican Minister of Foreign Ke- 
lations. 

Tlie exchange marked simultaneous approval by 
both Governments of a series of recommendations 
made last fall by a Joint Migratory Labor Com- 
mission composed of representatives of the De- 
partments of State, Justice, Labor, and Agi'icul- 
ture and the Mexican Ministries of Foreign Rela- 
tions, Labor, and Interior.^ 

The approved recommendations in substance 
call for the following measures to improve exist- 
ing operations under the Migrant Labor Agree- 
ment of 1951, as amended,' and to deter the illegal 
migratory movement : 

An increase in U.S. border patrol personnel and 
equipment; coordination of all U.S. border pa- 
trolling activities; and continuation and improve- 
ment of present coordination with Mexico. 

The proposal of U.S. legislation to deter em- 
ploj'ers from utilizing illegal entrants and to pun- 
ish persons engaged in their transportation. 

Improvement and extension of certain fences 
and construction of towers to deter illegal cross- 
ings. 

Use of an identification device for IMexican 
workers. 

Continuation of Mexico's present practice of 
transporting illegal entrants to the interior of 
Mexico. 

Prevention by Mexico of unlawful emigration 
of workers. 

Improvement of Mexican border patrol and its 
coordination with U.S. border jJatrol action. 

Reduction in number of copies of work contracts. 

Reduction in number of copies of forms re- 
quired of employers for contracting purposes. 

Interchange of the two Governments' instruc- 



' For background on the Commission, see Bullbh'in of 
Mar. 29, 1954, p. 467, and Apr. 12, 1954, p. 565. 
'Ibid., Feb. 19, 1951, p. 300. 



tions on operations, interpretations, and achninis- 
tration of the migrant-labor program. 

Efforts to be made by both Governments to sim- 
plify procedures for the return of mentally ill 
jNIexican agricultural workers under contract. 

Procedures to cover cost of return transporta- 
tion if the worker abandons his work without 
justified cause. 

The addition of more specific items to the work 
contract's present schedule of benefits on account 
of occupational risks. 

Improvement of Mexico's controls to prevent 
the concentration of excess workers at migratoiy 
stations. 

Discontinuance of migratory stations in Mexico 
within 160 kilometers of the border. 

Joint development of an information program 
through the appropriate agencies of the two 
Governments. 

U.S. and Japan Sign Agreement 
for Technical Cooperation 

The Foreign Operations Administration an- 
nounced on April 6 the conclusion at Tokyo of a 
technical cooperation agreement with Japan aimed 
at strengthening that nation's economy through 
increased efficiency in ilidustry, agi-iculture, and 
commerce. It is the first agreement Foa has con- 
cluded with Japan on an operating program in 
that country. 

The technical cooperation agreement covers op- 
erations of a Japanese Productivity Center for 
which Foa has allotted an initial $200,000 with 
Japan putting up a like amount in local currency. 
Foa has available a total of $500,000 appropriated 
by the last Congress to begin the technical cooper- 
ation program in Japan. 

The center was officially opened by Japan in 
February, but Foa financial support was not pos- 
sible until the formal agreement had been con- 
cluded and signed. Patterned after similar 
programs in Europe under the Marshall plan, the 
technical assistance program in Japan is designed 
to increase productivity with its attendant benefits, 
including an expansion of Japan's trade, particu- 
larly in the Far East, and increasing the purchas- 
ing power of Japan. 

FoA will provide technical aid and send Ameri- 
can experts to work with the Japanese, and 



April 25, 1955 



701 



numbers of Japanese industrialists and technicians 
■will be brought to the United States to observe 
and study American methods in industry, mining, 
labor, transportation, agriculture, and related 
fields. 



Current Actions 



MULTILATERAL 



Aviation 

Convention for unification of certain rules relating to 
international transportation by air, and additional 
protocol. Concluded at Warsaw October 12, 1929. 
Entered into force February 13, 19.33. 49 Stat. 300. 
Ratification deposited: Union of South Africa (includes 
Territory of South West Africa), December 22, 1954. 

Narcotic Drugs 

Protocol for limiting and regulating the cultivation of the 
poppy plant, the production of, international and 
wholesale trade in, and use of opium. Dated at New 
Yorlv June 23, 1953." 
Ratification deposited: Pakistan, March 10, 1955. 

Publications 

Protocol amending agreement for suppression of circula- 
tion of obscene publications signed at Paris May 4, 1910 
(37 Stat. 1511). Done at Lake Success May 4, 1949. 
TIAS 2164. 
Acceptance deposited: Luxembourg, March 14, 1955. 

Telecommunications 

International telecommunication convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 1954." 

Senate advice and consent to ratification given: April 1, 
1955. 

Final protocol to the International telecommunication con- 
vention. Signed at Buenos Aires December 22, 1952. 
Entered Into force January 1, 1954.' 
Senate advice and consent to ratification given: April 1, 
1955. 

White Slave Traffic 

Protocol amending the International agreement signed at 
Paris May IS, 1904, and the international convention 
signed at Paris May 4, 1910, for suppression of white 
slave traffic. Done at Lake Success May 4, 1949. TIAS 
2332. 
Acceptance deposited: Luxembourg, March 14, 1955. 



' Not in force. 

' Not in force for the United States. 



BILATERAL 

Guatemala 

Agreement providing for investment guaranties author- 
ized by section 413 (b) (4) of the Mutual Security Act 
of 1954. Effected by exchange of notes at Wasliington 
March 23, 1955. Entered into force March 23, 1955. 

Haiti 

Agreement providing for emergency assistance to Haiti in 
connection with hurricane disaster, pursuant to Title II, 
Public Law 4S0 (68 Stat. 454, 457). Effected by ex- 
change of notes at Port-au-Prince March 22 and AprU 1, 
1955. Entered into force April 1, 1955 ; operative Octo- 
ber 15, 1954. 

Iraq 

Agreement relating to a technical cooperation program 
of community welfare. Signed at Baghdad March 2, 
1955. Entered into force March 2, 1955. 

Agreement relating to a technical cooperation program 
of social welfare services. Effected by exchange of 
notes at Baghdad July 21 and August IS, 1952. Entered 
into force August 18, 1952. TIAS 2725. 
Replaced (by above agreement) : March 2, 1955. 

Japan 

Convention for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
estates, inheritances, and gifts. Signed at Washinfrton 
April 16, 1954. Ratified by the President March 7, 1955. 
Ratified by Japan March 25, 1955. Instruments of 
ratification exchanged April 1, 1955. Entered into force 
April 1, 1955. 
Proclaimed by the President: April S, 1955. 

Convention for the avoidance of double taxation and the 
prevention of fiscal evasion with respect to taxes on 
income, with a related exchange of notes. Signed at 
Washington April 16, 1954. Ratified by the President 
March 7, 195.J. Ratified by Japan March 25, 1955. In- 
struments of ratification exchanged April 1, 1955. 
Entered into force April 1, 1955. 
Proclaimed by the President: April 8, 1955. 

Panama 

Convention regarding tlie Col6n Corridor and certain 
other corridors through the Canal Zone. Signed at 
Panamd May 24, 1950. Ratified by the President 
August 21, 1950. 

Entered into force: April 11, 1955 (date of exchange 
of in.struments of ratification). 

Highway convention signed at Panamd September 14, 
1950. Ratified by the President July IS, 1952. 
Entered into force: April 11, 1955 (date of exchange 
of instruments of ratification). 



Correction 

Bulletin of April 18, 1955, p. 666— In the sixth 
line of the second column, the date should be 
October S3, 1954. 



702 



Department of Stale Bulletir 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Problems of Administering East African Trust Territories 



Statements hy Mason Sears 

U.S. Representative on the Trusteeship Council '■ 



J.S. POSITION ON TIMETABLE PRINCIPLE 

D.S./U.N. press release 2121 dated February 24 

I have a statement concerning the report of the 
Visiting Mission to East Africa on which I had 
the privilege of serving. 

There are several points in the report on which 
I, as a member of the mission, took an individual 
view but on which my Government has reached 
■^iiiiiewliat different conclusions. I wish to refer 
now particularly to the suggestion of laying down 
a t inietable for the attainment of self-govermnent. 
My Government recognizes that sometimes, where 
a territory is close to self-govermnent, this con- 
cept has merit. In the case of the Philippines, for 
example, the United States did recommend a date 
for independence some years before its realization. 

But as a general principle the United States 
continues to believe that target dates for self- 
government should only be set when the inhabit- 
ants of a trust territory are nearly approaching 
the time when they are "able to undertake its re- 
sponsibilities." 

However, my Government believes that as a 
general rule the setting of a timetable tends to be 
too rigid and doubts whether it can usefully be 
applied to Tanganyika. On the other hand, it 
believes that orderly progress toward self-govern- 
ment should always be carried resolutely to a 
completion. In certain cases the achievement of 
self-government might be brought about even 
sooner than called for in a timetable. 

Accordingly, since it is difficult to estimate 
progress in economic and social as well as in politi- 



' Made in the Council on Feb. 24, Mar. 8, and Mar. 17. 



cal and constitutional fields, my Government will 
not support the timetable principle for Tangan- 
yika. 



THE RACIAL PROBLEM IN TANGANYIKA 

D.S./U.N. press release 2125 dated March 8 

Most of the political issues in Africa today can 
be traced to one of three sources — racialism, na- 
tionalism, or the ownership of land. But these 
are issues which have always provoked differences 
among peoples and governments all over the 
world. They are heard in parliamentary debates 
in many countries. And we see them here in the 
differing approach which marks the colonial 
policies of the three principal administering 
powers. 

It is, consequently, not surprising that they 
arise in this Council and in the report of the Visit- 
ing Mission to Tanganyika.^ At least they help 
to explain why emerging nationliood is a problem 
of such interest and importance. 

It is unfortunate, however, that debate over 
individual issues in the report has obscured the 
undeniable overall progress of Tanganyika. By 
any fair comparison this territory is making great 
headway. This, in fact, is the basic premise of 
the report itself, although it is a premise which 
was not sufficiently stressed and has, therefore, 
been generally overlooked. 

The report states, in so many words, that "there 
has been continuous progress during the post-war 
years, and this largely reflects the confidence, good 

' U.N. doc. T/1142 dated Dee. 23, 1954. 



April 25, 1955 



703 



will and determination of the Administering 
Autliority and its representatives in the territory." 

Its chief representative, Sir Edward Twining, 
Governor of Tanganyika since 1949, has made an 
outstanding contribution to the progress of tlie 
territoi-y. His clear understanding of the prob- 
lems of the area is respected by all races and par- 
ticularly by the Africans. 

So much has been said about the teiTitory not 
only in the report but in subsequent discussions 
that we shall refrain from further comment except 
on the subject of timetables and the multiracial 
policy. 

On the question of a timetable for independence, 
the United States Government does not support its 
application to Tanganyika, nor does any of our 
delegation believe it would have the effect of speed- 
ing the coming of self-government. The facts are 
that British administrators are promoting self- 
government in Africa as fast as they possibly can. 
For proof of this we point to Togoland and the 
Gold Coast, to Nigeria and the Cameroons. 

As to the question of a multiracial policy, there 
can be no doubt of its high purpose. Neither can 
we overlook the fact that the European-Asian 
population is less than one percent of the whole. 
Our position on this question is twofold. The 
first is that Tanganyika is primarily an African 
country and is being sincerely developed as such 
by its multiracial population. The second is that 
eventually the Africans themselves will have to 
make a very important decision. They will have 
to decide whetlier or not to approve some workable 
system to protect the partnership rights of their 
European and Asian partners after Tanganyika 
has become self-governing. The importance 
which this decision will have for the economic 
future of their country is clear. 

In this connection Lord Lloyd, the Under Sec- 
retary of State for the Colonies, recently had this 
to say: "Where there is a multiracial problem, the 
first essential is for the leaders of the local groups 
to get together and work out a basis of corponite 
action. It cannot be imposed from outside." 

"Nor could the British Government," said Sir 
Alan Burns in a statement last year, "agree to a 
solution that gave forever to the minority complete 
political power over the indigenous majority." He 
went on to say, "The majority of the population 
cannot in any country be governed indefinitely by 
a minority and especially by a minority of aliens." 

704 



Tliis idea has been expressed with equal fimility 
by Prime Minister Huggins of the Central African 
Federation. He has stated, "The only way Euro- 
peans can survive in Africa is to get on with Afri- 
cans and make them friends. The African must 
be given a chance," he said ; "otherwise the Euro- 
pean will have to leave Africa." Those were the 
words of Prime Minister Huggins and they are 
pertinent to Tanganyika. 

Taken together, it seems to us that these three 
statements should dispel any doubt whatever that 
Tanganyika is considered to be primarily an Afri- 
can country and is being developed as such by its 
multiracial population. 

Mr. President, regardless of the merits or de- 
merits of the Visiting Mission's report, there is one 
fact that is beyond debate, and that is this : Tan- 
ganyika is above all a dynamic place where Afri- 
cans, Asians, and Europeans can and do have big 
thoughts about its future. The United States 
delegation hopes that the tliree races, moving 
closer and closer together, will have the patience 
and wisdom to keep it that way. 



PROGRESS IN RUANDA-URUNDI 

U.S. /C.N. press release 2130 dated March 17 

The i-eport of the Visiting Mission to Kuanda- 
L^rundi ^ contains many comments. Some oi 
them are very complimentary ; others are debata- 
ble because thej' suggest amendments to estab- 
lished policies. But as a member of the Visiting 
Mission, let me say that I never heard anyone 
question the extent of the overall Belgian contri- 
bution to the welfare of Euanda-Urundi. 

A few daj's ago the representative of Belgium 
noted the lack of attention which the report had 
given to the highly successful reforestation of the 
countryside. Mr. President, it is extremely diffi- 
cult to edit and publish within 2 weeks a balanced 
report on a subject so vast and so interesting as 
Euanda-Urundi. But the representative of Bel- 
gium is right. I say this because one of the most 
impressive features of this hilly country is un- 
questionably the extent of its forest areas. Trees 
grow everywhere. There must be millions ol 
them, and every one of them comes from Belgian 
reforestation programs. 

Because of these programs the barren hillsides oi 



' U.N. doe. T/1141 dated Dec. S, 10.^4. 

Department of Slate Bulletin 



Application of "Atoms for Peace" 
to Economy of Trust Territories 

Following is a statement made by Mr. Sears in the 
Trusteeship Council on March 2 (V.S./U.N. press 
release 2122). 

The United States delegation believes tliat Presi- 
dent Eisenliower's atoms-for-peace proposal may 
have a number of important applications to the eco- 
nomic life of the African trust territories, and espe- 
cially Tanganyika because of its size. 

The possibilities of atomic research are vast, and 
although it would be unwise to expect too much 
tomorrow, radioactive tracers have already shown 
that it is frequently possible to improve soil fer- 
tility and to expand productive areas. If, for ex- 
ample, research proves that this can be done in 
Ruanda-Urundi, where population density and re- 
current crop shortages are primary concerns, It 
might one day open up the way to agricultural 
prosperity. 

In another field of activity, radioactive tracers 
have been used successfully to combat the destruc- 
tive effects of insects. It is entirely possible, for 
instance, that application of tracers to a study of 
the tsetse fly problem might lead ultimately to dis- 
coveries which could conceivably eradicate this 
pest. 

What this would mean to Tanganyika — and all 
the other territories, for that matter — would be 
hard to exaggerate. Vast new areas would become 
safe for farming. Land shortages would be re- 
lieved. And the growth of grievances like those 



which keep the Man Mau movement alive would 
become unlikely. 

In West Africa the all-important cocoa industry 
is threatened by the swollen shoot disease. It is 
possible that over a period of time tracers might 
show how to develop a tree which would be resist- 
ant to this blight. 

And there are other uses. However, we do not 
say that all, or any, of these things can be accom- 
plished. Far from it. Some may not be possible 
at all. But we do suggest that experimentation is 
worth trying. 

We believe that tracer techniques may reveal 
new ways to find out how these things can be done. 
In any case, the possibility of new discoveries has 
stimulated considerable tracer research in the 
United States and other countries. 

Therefore, in line with President Eisenhower's 
proposal, if any qualified agricultural experts from 
the trust territories desire to attend the Oak Ridge 
Institute of Nuclear Studies for a short course in 
tracer techniques, their applications will be most 
welcome. Longer courses are available at several 
American universities. Furthermore, the prospec- 
tive visitors will be given every assistance which 
the United States Government is in a position to 
offer under its interim programs to develop the 
peaceful uses of atomic energy. 

A supply of radioactive materials for the use of 
these experts when they return to their respective 
territories presents no difBculty, as several nations 
are already engaged in the distribution of isotopes. 

My delegation hopes that the various administer- 
ing authorities will find this suggestion worthy of 
study. 



I former generation have been as good as rescued 
Tom the desert. But the forests are only one as- 
)ect of the country. There is also its network of 
ixcellent roads, its irrigated valleys, and the cul- 
ivation of its hillsides, which are often terraced 
•ight up to the top. 

The difficulty of doing all these things, espe- 
dally in a land so deep in Central Africa that 
mtil recently it was very hard to reach, must be 
ipparent to every visitor. 

Then there is the undeniable economic, social, 
md educational progress of its people. The ath- 
etic skill of some of them is such — especially in 
he high jump — tliat they should be urged to com- 
)ete in the international Olympic games. They 
vould be hard to beat. 

All of these accomplishments are inherent in the 
nission's report, although the proper emphasis is 
a eking. 



Altogether it is vitally important for the free 
world that the progress of this territory should 
continue and that nothing in the future shall arise 
to undo the good which the Belgian Government 
has done. 

But turning to the recommendations of the re- 
port, we would like to jDoint out that those which 
the administering authority appears to oj^pose 
the most come, in almost every case, from one basic 
premise. This was a fear held by a majority of 
tlie mission that the administration's policy of 
slow but evenly maturing progress might not be 
fast enough to keep up with the evolutionary pace 
in other parts of Africa. We thought that the 
future stability of the territory would be better 
safegiiarded if too big a gap between the political 
responsibility of its people and that of their pro- 
spective self-governing neighbors could be 
avoided. 



\pri\ 25, J 955 



705 



It is here that a timetable for achieving inde- 
pendence comes in. And it is here again, as in the 
case of Tanganyika, that I must record tlie oppo- 
sition of the U.S. Government to the timetable 
principle for Ruanda-Urundi. 

The views of the Belgian administration on 
the best way to promote political progress in this 
territory have often been explained to the Trus- 
teeship Council. We respect their philosophy 
and can only hope they will be given enough time 
to accomplish their goals, unaffected by events in 
other territories. 

It could well be that methodical, unliurried 
progress toward final emancipation will ulti- 
mately turn Ruanda-Urundi into one of the most 
stable areas in Africa. Mr. President, it is an 
understatement to say that this is the earnest hope 
of the U.S. delegation. 



U.S. Delegations to 
International Conferences 

Public Advisers to GATT Delegation 

On April 16 (press release 211) Secretary Dulles 
announced the designation of four public advisers 
to the U.S. delegation which is now at Geneva con- 
ducting tariff negotiations with Japan and other 
countries.^ The U.S. officials on the negotiating 
delegation represent nine executive agencies and 
departments of the Government. It is expected 
that this delegation will be materially aided by the 
broad experience and judgment of the public ad- 
visers just appointed. 

The negotiations at Geneva are being conducted 
between the United States and Japan, on the one 
hand, and between the United States and third 
countries which are negotiating with the Japa- 
nese under the auspices of the General Agreement 
on Tariffs and Trade (Gait). Upon conclusion 
of the negotiations, Japan is expected to become 
a full-fledged participant in the General Agree- 
ment. At present Japan is participating on a 
provisional basis. 

The public advisers will arrive in Geneva about 
April 24. They are : 

Allan B. Kline, former president of the American Farm 
Bureau Federation 



Bert Seidman, staff economist, American Federation of 
Labor 

Russell G. Smith, executive vice president in charge of 
international operations. Bank of America 

Lawrence F. Whittemore, chairman of the board of direc- 
tors, Brown Company, pulp and paper manufacturers 



Current U.N. Documents: 
A Selected Bibliography^ 



Economic and Social Council 

Equal Pay for Equal Work. Report Prepared by the 
International Labour Office. E/CN.6/257, January 5, 
1955. 4 pp. mimeo. 

International Assistance to Refugees within the Mandate 
of the United Nations High Commissioner for Ref- 
ugees. Report by the United Nations High Commis- 
sioner for Refugees. E/2678, January 11, 1955. 9 pp. 
mimeo. 

Examination of Measures Designed To Avoid Excessive 
Fluctuations in the Prices of and Volume of Trade in 
Primary Commodities. Resolutions adopted by the 
Meeting of the Ministers of Finance and Economy of 
the American Republics at the fourth plenary session 
of the Inter-American Economic and Social Council, 
Rio de Janeiro, Brazil, 1954. E/CN.13/8, January 19, 
1955. 5 pp. mimeo. 



Trusteeship Council 

United Nations Visiting Mission to Trust Territories In 
East Africa, 1954. Report on the Trust Territory of 
Ruanda-Urundi. T/1141, December 8, 1954. 125 pp. 
mimeo. 

United Nations Visiting Mission to Trust Territories in 
East Africa, 1954. Report on the Trust Territory of 
Somaliland. T/1143, December 20, 1954. 158 pp. 
mimeo. 

Provisional Agenda of the Fifteenth Session of the Trus- 
teeship Council. T/1144, December 21, 1954. 16 pp. 
mimeo. 

Report of the United Nations Visiting Mission to Trust 
Territories in East Africa, 1954, on Tanganyika. 
T/1142, December 23, 1954. 293 pp. mimeo. 

Examination of the Annual Report on the Administration 
of the Cameroons Under British Administration, Tear 
1953. Note by the Secretary-General. T/1147, Jan- 
uary 5, 1955. 5 pp. mimeo. 

Examination of the Annual Report on the Administration 
of Togoland Under British Administration, Tear 1953. 
Note by the Secretary-General. T/1148, January 5, 
1955. 27 pp. mimeo. 

Examination of the Annual Report on the Administration 
of Tanganyika, Year 1953. Note by the Secretary- 
General. T/1149, January 5, 1955. 4 pp. mimeo. 

Examination of the Annual Report on the Administration 
of the Cameroons under British Administration, Year 
1953. Report of the World Health Organization on 
Public Health in the Cameroons under British Ad- 
ministration. T/1152, January 24, 1955. 18 pp. 
mimeo. 



' For announcement of U.S. delegation, see Bulletin 
of Mar. 7, 1955, p. 402. 



' Printed materials may lie secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 29G0 Broadway, New York 27, N. Y. Other 
materials (mimeographed or processed documents) may 
be consulted at certain designated libraries in the United 
States. 



706 



Department of State Bulletin 



Lpril 25, 1955 



Index 



Vol. XXXII, No. 826 



Lfrica. Problems of Administering East African Trust 

Territories (Sears) 703 

American Principles 

ollcy on Formosa (Dulles) 677 

rlnclples in Foreign Policy (Dulles) 671 

urpose of U.S. Economic Aid to South and East Asia 

(Eisenhower) 695 

ome Aspects of Foreign Policy (Dulles) 675 

.tomic Energy 

greement for NATO Cooperation on Atomic Information 

(Eisenhower, Wilson) 686 

pplication of "Atoms for Peace" to Economy of Trust 

Territories (Sears) 705 

Qternational Cooperation To Harness the Atom for Peace 

(Patterson) 690 

ommunism. Principles In Foreign Policy (Dulles) . . . 671 
ongress, The. Benefits to the United States of Participa- 
tion in Proposed Organization for Trade Cooperation 

(Eisenhower) 678 

Iconomlc Affairs 

eneflts to the United States of Participation In Proposed 

Organization for Trade Cooperation (Elsenhower) . . 678 

OA Loan to Iran 696 

ublic Advisers to GATT Delegation 706 

ublications on GATT 680 

'.S. and Japan Sign Agreement for Technical Cooperation . 701 
'.S. Position on Conservation of Fisheries Resources . . 696 
.S. Views on Draft Articles on Regime of Territorial Sea 

(text of U. S. note verbale) 699 

idacational Exchange. Soviet Editors Cancel Plans To 

Visit United States 695 

nrope. Some Aspects of Foreign Policy (Dulles) . . . 675 
[ealth, Education, and Welfare. iSalk Poliomyelitis 

Vaccine 689 

iternational Organizations and Meetings 

ublic Advisers to GATT Delegation 706 

.S. position on Conservation of Fisheries Resources . . 696 

tan. FOA Loan to Iran 696 

apan. U.S. and Japan Sign Agreement for Technical 

Cooperation 701 

leiico. U.S.-Mexlcan Agreement on Migratory Workers . 701 
futual Security. Purpose of U.S. Economic Aid to South 

and East Asia (Eisenhower) 695 

on-Self-Govcrning Territories 

pplication of "Atoms for Peace" to Economy of Trust 

Territories (Sears) 705 

problems of Administering East African Trust Territories 

(Sears) 703 

forth Atlantic Treaty Organization 
greement for NATO Cooperation on Atomic Information 

(Elsenhower, Wilson) 686 

lixth Anniversary of NATO (Dulles, Ismay) 685 

That NATO Means to Americans (Perkins) 681 

txchange of Ratlflcatlons of Highway Conventions With 

I Panama 700 

letters of Credence (Vallarino) 677 

Iresidential Documents 

greement for NATO Cooperation on Atomic Information . 686 
eneflts to the United States of Participation in Proposed 

Organization for Trade Cooperation 678 

ublications 

urrent U.N. Documents 706 

ublications on GATT 680 

nganyika. Problems of Administering East African 

Trust Territories (Sears) 703 



Treaty Information 

Current Actions 702 

FOA Loan to Iran 696 

U.S. and Japan Sign Agreement for Technical Cooperation . 701 

U.S. -Mexican Agreement on Migratory Workers .... 701 
U.S.S.K. Soviet Editors Cancel Plans To Visit United 

States 695 

United Kingdom. Problems of Administering East African 

Trust Territories (Sears) 703 

United Nations 

Current U.N. Documents 706 

Problems of Administering East African Trust Territories 

(Sears) 703 

Some Aspects of Foreign Policy (Dulles) 675 

U.S. Views on Draft Articles on Regime of Territorial Sea 

(text of U.S. note verbale) 699 

Name Index 

Dulles, Secretary 671, 675, 677, 685, 689 

Eisenhower, President 678, 686, 695 

Ismay, Lord 685 

Patterson, Morehead 690 

Perkins, George W 681 

Sears, Mason 703, 705 

Vallarino, J. J 677 

Wilson, Charles E 686 



Check List of Department of State 


Press Releases: April 11-17 


Releases 


may be obtained from the News Dlvi- 


sion, 


Department of State, Washington 25, D. C. 


Press releases Issued prior to April 11 which ap- | 


pear 


in tliis 


issiie of tlie Bulletin are Nos. 183 of 


April 4 and 1S5 of April 5. 1 


No. 


Date 


Subject 


»197 


4/11 


Holland : relations with Latin Amer- 


tl98 


4/11 


Note concerning Czechoslovak border 
guard. 


199 


4/11 


Panama credentials (rewrite). 


200 


4/11 


Highways convention with Panama. 


*201 


4/11 


Statement on Edward R. Corsi. 


*202 


4/11 


Death of Ambassador Jesse D. Locker. 


203 


4/11 


Dulles : "Principles in Foreign Policy." 


204 


4/12 


Dulles : statement on Stevenson speech. 


*205 


4/13 


Reinhardt nomination to Viet-Nam. 


t206 


4/14 


Dulles : Pan American Day. 


207 


4/13 


Dulles : circulation of polio report. 


t208 


4/14 


Key : "Looking Ahead With the United 
Nations." 


*209 


4/15 


Murphy : Wisconsin award. 


210 


4/15 


Agreement with Mexico on migratory 
workers. 


211 


4/16 


Public advisers to Gatt delegation 
(rewrite). 


212 


4/16 


Soviet editors not to visit U. S. 
ted. 


*Not prin 


tHeld for 


a later issue of the Bulletin. 




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epartment 

of 

State 



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OFFICIAL BUSINESS 



The General Agreement on Tariffs and Trade (Gatt) came 
into existence on January 1, 1948, as an undertaking by eight 
of the most important world trading countries, including the 
United States. This agreement sets out general rules for the 
conduct of international trade and establishes standards for 
international cooperation through joint negotiation of the re- 
duction of tariffs and the elimination of other barriers to free 
world trade. Today 34 countries participate in this unique 
international cooperative association. Together, they account 
for about 80 percent of world trade. 

As a result of changes in world economic conditions since 
1948, representatives of the countries participating in the Gen- 
eral Agreement recently made an intensive review of its pro- 
visions. They proposed amendments which are designed to 
strengthen the agreement and to provide a permanent organiza- 
tion (Organization for Trade Cooperation) to administer the 
world trade rules. The amendments agreed upon will come 
into operation after approval by the contracting parties. 

Two recent Department of State publications explain this 
important agreement and the proposed amendments : 



General Agreement on Tariffs and Trade 
Present Rules and Proposed Revisions 

(A comparative study.) 



45 cents 



The General Agreement on Tariffs and Trade . . . 

An Explanation of Its Provisions and the Proposed Amendments 

Publication No. 5813 20 cents 

(An explanation in layman's language.) 

These publications may be purchased from the Superin- 
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Washington 25, D.C. 

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General Agreement on Tariffs and Trade . . . 
Present Rules and Proposed Revisions 

Please send me copies of 

The General Agreement on Tariffs and Trade . . . 

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tI. XXXII, No. 827 
May 2, 1955 



,VlBNX o^ 




RECOMMENDATIONS FOR 1956 MUTUAL SECURITY 
PROGRAM 

Message of the President to the Congress ' 711 

Letter From the President to Secretary Dulles 715 

SEVENTH SEMIANNUAL REPORT TO CONGRESS ON 

THE MUTUAL SECURITY PROGRAM (Excerpt) . . 717 

PAN AMERICANISM— PRODUCT OF A GREAT DE- 
SIGN • Address by Secretary Dulles 728 

EXCH.ANGE OF VIEWS CONCERNING AUSTRIAN 

STATE TREATY 733 

INCREASING INTERNATIONAL TRAVEL • Statement 

by Preston Hotchkis 741 



For index see inside bads cover 



Boft'^n Public Library 
'uperintcndpTit of Documents 

MAY 18 1955 




^^^^yy.. bulletin 



Vol. XXXII, No. 827 • Publication 5840 
May 2, 1955 



For sale by the Superintendent of Documents 

U.S. Govemment Printing Office 

Washington 25, D.C. 

Price: 

62 Issues, domestic $7.50, foreign $10.25 

Shigle copy, 20 cents 

The printing or this publication has 
been approved by the Director of the 
Bureau of the Budget (January 19, 1955). 

Note: Contents of this publication are not 
copyrighted and lt.ems contained herein may 
be reprinted. Citation of the Department 
or State Bolletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, provides the 
public and interested a/iencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of Slate and the Foreign 
Service. The BL'LLETI\ includes 
selected press releases on foieign pol- 
icy, issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreements to 
which the United States is or may 
become a parly and treaties of gen- 
eral international interest. 

Publications of the Department, as 
well as legislutii'e nuiterial in the field 
of internatiorwil relations, are listed 
currently. 



Recommendations for 1956 Mutual Security Program 



Following is the text of the President's message 
to Congress containing recommendations for the 
Mutual Security Program for 1956, together with 
a letter froin the President to Secretary Dulles 
.concerning the future ad7ninistration of the 
{program. 



PRESIDENTIAL MESSAGE ' 

To the Congress of the- United States: 

I recommend that tlie Congress authorize, for 
bhe Fiscal Year ending June 30, 1956, the Program 
for Mutual Security outlined in this message. 
The program reflects the greatly improved condi- 
tions in Europe and provides for the critical needs 
of Asia. It encourages private overseas invest- 
ment and private enterprise abroad, fosters an 
increase in cooperative effort, emphasizes loans 
rather than grants wherever possible. I consider 
the program an indispensable part of a realistic 
and enlightened national policy. 

The fixed, unwavering objective of that policy 
is a just, prosperous, enduring peace. On this 
fundamental position, we base our broad approach 
toward our world trade, our military alliances, 
3ur exchange of information and of persons, our 
partnership with free nations through the Mutual 
Security Program. This partnership is rooted in 
:he facts of economic and defense interdependence 
ind also in the understanding and respect of each 
partner for the cultural and national aspirations 
of the other. 

The recommendations in this message are an 
essential complement to the foreign economic pro- 
-am outlined in my message of January 10, 1955.^ 
That program is designed to develop the economic 
itrength and the security of the free world through 
lealthy trade expansion among the free nations 



' H. Doc. 144, 84th Cong., 1st sess., transmitted Apr. 20. 
' Bulletin of Jan. 24, 1955, p. 119. 



and through an increased flow of investment 
capital particularly to underdeveloped areas. The 
lessening of barriers to trade in the free world is a 
vital component for the successful implementation 
of our national policy for security and peace. 

We must recognize, however, that certain free 
■world countries, because of the aftermath of war 
and its continuing threat or because of less de- 
veloped economies, require assistance which will 
help them achieve stable national health and essen- 
tial defensive strength. The Mutual Security 
Program is designed to deal with these specific 
problems in the national interest and in the cause 
of peace. The program stands on its demonstrated 
worth. 

Its cumulative success is especially evident in 
Western Europe today. The free nations there 
have attained new levels of production, larger 
volumes of trade, expanded employment, and ris- 
ing standards of living. They have established 
strong defense forces which, although deficient in 
some respects, now constitute a significant deter- 
rent to aggression and add substantially to the 
free world's defensive power. Their own national 
efforts and their cooperation with each other are 
the prime reasons for their success. However, the 
United States Mutual Security Program and its 
predecessor, the European Recovery Program, 
deserve an important portion of the credit. 

The program I now recommend to you for Fiscal 
Year 195fi proposes no economic aid for the orig- 
inal Marshall Plan countries in Western Europe. 
These nations are capable of meeting current 
defense goals without such support. Deliveries 
of arms from previous appropriations will con- 
tinue under constant review to insure that the 
latest weapon developments and strategic think- 
ing are taken into account. Our initial contri- 
bution toward the arming of German forces is 
already funded by previous Congressional action. 

In Spain and Yugoslavia, which were not in the 



Aay 2, 1955 



711 



Marshall Plan, defense programs can be successful 
only with further strengthening of their economic 
base. New appropriations are needed to continue 
oui" coopei'ation with them. Likewise the special 
circumstances of the city of Berlin require con- 
tinued support for that outpost of freedom. 

But the immediate threats to world security and 
stability are now centered in Asia. The pre- 
ponderance of funds requested of the Congress 
will be used to meet the threat there. Within the 
vast arc of fi'ee Asia, which extends from the Re- 
public of Korea and Japan to the Middle East, 
770 million people, one-third of the world's popu- 
lation, reside. Most of them are citizens of newly 
independent states. Some have been engaged in 
recent war against the Communists. All are 
threatened. Cajsital is very scarce. Technical 
and administrative skill is limited. Within the 
area, however, abundant resources and fertile 
lands are ready for development. 

Now is the time for accelerated development of 
the nations along the arc. The major responsi- 
bility must necessarily lie with the countries 
themselves. At best, foreign capital as well as 
foreign aid can only launch or stimulate the proc- 
ess of creating dynamic economies. In this light, 
the United States has the capacity, the desire, the 
concern to take the lead in friendly help for free 
Asia. 

For example, we can assist in providing and 
mobilizing capital for useful and constructive de- 
velopment. We can encourage our successful pri- 
vate industry to join with the people of free Asia 
in building their private industry and facilitate 
the way. We can consult and advise on the means 
by which a free nation builds upon the initiative 
of independent farmers to achieve a steady ad- 
vance toward better standards of living, in con- 
trast to the mounting failures of coUectivist agri- 
culture. 

It is clear that most of the nations of free Asia 
prefer to quicken their cooperative march toward 
these objectives through the Colombo Plan Con- 
sultative Group which was established in 1950 
to promote mutual economic development. We 
welcome this initiative. As a member of the 
Group, we shall continue to work in strengthening 
its cooperative efforts. 

The varied nature of national situations re- 
quires that our cooperation be essentially bilateral. 
Some of the nations are membere of the Manila 



Pact and their treaty obligations give rise to spe- 
cial economic jjroblems. Most are members of the 
Colombo Plan. Most, except for Japan, have 
very little industrial capacity. 

The requested authorization includes substan- 
tial funds to further our mutual objectives in this 
area. Of these funds I suggest that we can achieve 
the maximum return if $200 million is set asid« 
for the establislunent of a President's Fund foi 
Asian Economic Development, with broad rules 
enacted by Congress for its use through loans and 
grants, and with adequate latitude to meet chang- 
ing circumstances and to take advantage of con- 
structive opportmiities. 

To help assure the most effective use of thest 
funds, this appropriation should be available foi 
use over a period of years. Wisdom and economj 
in their use cannot be achieved through speed. A 
small, fii'm, annual commitment out of this $20C 
million may prove in many instances to be the 
most fruitful method. 

Because of the continuing threat of aggressioE 
and subversion in Asia, a large part of the amounts 
requested for military assistance and direct forces 
sup23ort is to build and maintain the defensive 
forces of our allies there. This includes the sub- 
stantial costs of maintaining and improving the 
defenses of the Nationalist Government of China 
in Formosa and provides for military equipmeni 
and supplies for Korea. 

The newly achieved stability in Iran has de- 
creased the Communist threat and has opened the 
way to the use of oil resources. These eventually 
will bring revenues to the nation for the furthei 
development of the land and the opening of new 
opportunities for its people. Pending resumptior 
of sufficient revenues from oil, however, limited 
defense aiad economic support must be provided 
In the Near East, our stalwart North Atlantic 
Treaty Organization allies, Greece and Turkey 
are both making significant progi'ess. But neithei 
of them can alone support the substantial armec 
forces which they maintain for their own defense 
and for the Nato force goals in that area. Theii 
initiative in promoting security arrangements ir 
the Balkans, and Turkey's vigorous efforts foi 
Middle East defense, reinforce the need for con- 
tinued support of their efforts. Iraq's action ir 
joining with Turkey in a defensive security ar- 
rangement is another favorable development. 
The continuine tension between the Arab State; 



712 



Department of Sfafe Bullelii>\ 



nd Israel handicaps the peoples of all Near East 
lations. We should continue to work with the 
governments and peoples on both sides to improve 
heir economic status and accelerate their progress 
oward lasting peace between them. Our coopera- 
ion is beginning to bring results, particularly in 
he development of water resources. Such de- 
'elopments in the Palestine area can go far to 
emove present causes of tension. 

In the vast continent of Afi'ica the long-range 
ffect of our cooperation is extremely significant. 
This continent and its resources, the progress of 
fcs people and their relationship to the free world 
re of gi-owing importance. Requested appropria- 
ions for this area are needed in the effort to pro- 
lote welfare and growth for the peoples of Africa. 

In Latin America, I recommend intensification 
>f our technical cooperation jjrogram. In this 
rea more than a decade ago, technical cooperation 
s^as first undertaken in a systematic manner. The 
urograms have proved their high value in many 
)f our sister republics. No international pro- 
:rams have ever had such widesjjread welcome and 
upport. Indispensable to the economic develop- 
nent of many free nations, they also reflect the 
leep humanitarian spirit of the American people. 

Technical cooperation programs have contrib- 
ited effectively to the efforts of the other American 
Republics to strengthen and expand their national 
economies. These efforts have likewise been aided 
jy our very large inter- American trade, substan- 
ial private investment, more extensive lending by 
he Export- Import Bank, and credits by the Inter- 
lational Bank for Reconstruction and Develop- 
nent. As a result, Latin America has achieved a 
emarkable rate of economic development. In ad- 
iition to the technical cooperation programs for 
atin America, I recommend a continuation of our 
nodest contribution to the Organization of Amer- 
can States and further economic support to meet 
he critical situations in Guatemala and Boli\ia. 

Our programs of national action are not in any 
nanner a substitute for United Nations action in 
similar fields. Every instance of effective meas- 
ures taken through the United Nations on a human 
)roblem improves the ultimate prospect of peace 
m the world. Therefore, I strongly recommend 
hat the United Nations Technical Assistance Pro- 
-am, in which sixty governments participate and 
svhich is carried out by the United Nations and 
its specialized agencies be supported in a con- 
May 2, 1955 



tinuing and adequate manner. The United Na- 
tions Children's Fmid has carried out an especially 
appealing and significant work. We have done 
our full share to make tliis work possible. We 
should continue to do so. 

Persons who liave escaped from totalitarian 
oppression, often at great peril, and refugees up- 
rooted by war and disaster deserve further sup- 
port in 1956 through programs administered by 
the United States, the United Nations, and the 
Intergovernmental Committee for European 
Migration. 

One of the unique, least expensive, and most 
fruitfid aspects of the Mutual Security Progi-am 
is the participation, largely in humanitarian proj- 
ects, of forty-seven voluntary organizations repre- 
senting many millions of our citizens.^ These 
organizations do an exceptionally effective work 
in helping the escapees and refugees become self- 
supporting. They distribute large quantities of 
food on a people-to-people basis. But certain 
costs for transporting food, and for supplies be- 
yond their own voluntary resources, are needed 
and should be provided. 

In total, for Fiscal Year 1956, 1 recommend that 
the Congi-ess approve funds totaling $3,530 million 
for the Mutual Security Program, as proposed in 
the Budget Message.'' Of this amount $712.5 
million is for economic programs, including $172 
million for a continuation of Teclmical Coopera- 
tion programs, $175.5 million for special pro- 
grams, $165 million for development assistance, 
$200 million for the special President's Fund. 
$100 million is for a worldwide contingency fund. 
I request $1,000.3 million for Defense Support 
which serves both economic and defense purposes 
by supplementing the efforts of countries, par- 
ticularly in Asia, carrying out defensive measures 
beyond their current financial capacity. $1,717.2 
million is for military assistance and direct forces 
support. Included in this amount is $500 million 
to cover expected losses to present military assist- 
ance programs by operation of the Supplemental 
Appropriation Act, 1955. 



'The Foreign Operations Administration last month 
published a pamphlet entitled FOA and U. 8. Voluntary 
Agencies; copies may be obtained from FOA's Offlce of 
Public Reports, Washington 25, D. C. For a summary 
of voluntary foreign aid during the period 1939-1953, see 
Bulletin of Mar. 15, 19.54, p. 383. 

'Ibid., Jan. 31, 19.55, p. 163. 

713 



The Foreign Operations Administration has 
proved to be an effective and efficient instrument 
for condiKt in<; tlie Mutual Security Profji-am. An 
able and devoted pioup of men and women have 
successfully conducted the program under direct 
line authority from the President. 

Tiie (^)ngre-ss provided in the Mutual Security 
Act of 10.'>4 for the termination of the Foreign 
0|)erations Administration by June .30 of this year. 
As 1 indicated in my letter to the Secretary of 
State of April 15, 1 shall issue an Executive Order 
effective June 30, 19.55, transferring the atlairs of 
the Foreign Oj^erations Administration to the 
Department of State, except for certain military 
aspects which will be transferred to the Depart- 
ment of Defense. 

This transfer to permanent Departments of the 
Government will reflect the significance of this 
program as an integral part of our foreign policy. 
In the implementation of the program, the facili- 
ties of all agencies of the Executive Branch will 
be used where appropriate, and to the maximum 
possible extent on a contract basis. However, it 
13 essential that responsibility for the non-military 
operations continue unified; to fragment this re- 
sponsibility among several agencies would seri- 
ou.sly detract from their effectiveness. The re- 
organization will continue the role of the Institute 
of Inter-American Affairs in carrying out coopera- 
tive programs for the advancement of the well- 
being of the peoples in the other American 
Republics. 

The continuity of operations and the adjust- 
ments of internal relationships within the Depart- 
ment of State after June 30, 1955, will require a 
period of transition. 1 recommend that the Mu- 
tual Security Act of 1955 include broad authority 
to revi.se the organization during a period of six 
months following June .30, 19.55. 

The International Cooperation Administration 
will be a new semi-autonomous unit within the 
Department of State. Its Director will report 
directly to the Secretary of State and will, on the 
Secretary's behalf, give supervision and direction 
to the mutual .security operations performed 
within the Department of State. 

This responsibility will require that the Inter- 
national Cooperation Administration have the 
capacity to make and carry out operating decisions 
within broad policy guides established by the Sec- 
retary of State. It will likewise require that the 

714 



Director of the International Cooperation Ad- 
ministration have his own complement of support- 
ing staff and program pei-sounel, both in Wash- 
ington and in the field. It will be his responsi- 
bility to a.ssure that appropriate policy guide lines 
are secured from the Secretary of State, and 
within those guide lines he will issue the necessary 
instructions to the field to carry out its policy. 

Based on tlie experience of the past two years, 
three out of every four dollars appropriated for 
the entire Mutual Security Program will be im- 
mediately spent within the United States for 
commodities, services, machinery, and other items. 
Insofar as feasible and consistent with the effec- 
tive meeting of our goals overseas, the commodi- 
ties will include food, cotton, coal, and other goods 
for which our capacity or surplus supply most 
readily matches requirements. Approximately 
$350 million of agricultural products are expected 
to be used in the Fiscal Year 1955. This includes 
a significant export of major surplus crops. Ship- 
ments under the Mutual Security Program will 
be in addition to but coordinated with sales of sur- 
plus agricultural commodities for foreign cur- 
rencies under the Agricultural Trade Develop- 
ment and Assistance Act. 

The other twenty-five percent of the dollars will 
be spent overseas in a manner that will add 
directly to the accomplishments of the Mutual 
Security Program. For example, the offshore 
procurement contracts assist in establishing a de- 
fense production base in key points in the free 
world. In addition, these expenditures will in- 
directly add to the power of other nations sub- 
sequently to purchase with these dollars other 
needed goods from tlie United States. 

I recommend continuance of the authority in the 
present Mutual Security Act to meet unexpected 
events by transfer of funds, appropriated for one 
geogiaphic area or purpose, to another geographic 
area or purpose. Experience in recent years has 
demonstrated that flexible authority is highly de- 
sirable to move with dispatch to meet new circum- 
stances, to overcome new dangers, or to capitalize 
upon favorable developments. 

New procedures approved by the Congi-ess last 
year now make possible maximum integration of 
domestic procurement of military equipment for 
our own and allied forces, increased flexibility in 
the flow of military equipment to our allies and 
greatly simplified procurement and accounting 

Department of State Bulletin 



arrangements. Under the new procedures, the 
military departments procui'e most of the equip- 
ment for this program as a part of their regular 
procurement opei-ations, with military assistance 
funds reserved to repay the Services at the time 
the equipment is delivered. Under present law, 
military assistance funds which are reserved re- 
main available for obligation and expenditure 
until June 30, 1957. To further improve the pres- 
ent arrangements, I recommend that current and 
proposed military assistance funds be made avail- 
able until expended, as is now provided in the case 
of most Department of Defense appropriations 
for procurement. 

In conclusion, I wish again to emphasize the 
essential role of the Mutual Security Program. 
The program for the arc of free Asia has had a 
thorough review by all the Departments of the 
Government concerned, and it has been recom- 
mended to me by the Council on Foreign Eco- 
nomic Policy and the National Security Council 
after extensive study. 

We are making renewed and intensified efforts 
to develop a successful basic policy on the question 
of disarmament and we will persist in this effort. 
But until success is assured beyond doubt, the best 
prospects of peace and the grim essentials of 
security togetlier demand the continuance of both 
our national and mutual defense programs. 

The other free nations need the United States, 
and we need them, if all are to be secure. Here is 
a clear case of interwoven self-interest. The nec- 
essary expenditures to equip and maintain United 
States armed forces of air and land and sea at 
strategic points beyond our borders are never 
called aid. The necessary expenditures to enable 
other free nations associated with us to equip and 
maintain vital armed forces at these same strategic 
points beyond our borders should not be con- 
sidered as aid. These, in fact, are defense alli- 
ance expenditures clearly safeguarding in the most 
desirable manner, and at times in the only possible 
way, the security of the United States and of other 
free nations. 

Our economy cannot be strong and continue to 
expand without the development of healthy eco- 
nomic conditions in other free nations, and with- 
out a continuous expansion of international trade. 
Neither can we be secure in our freedom unless, 
elsewhere in the world, we help to build the con- 
ditions under which freedom can flourish by 



destroying the conditions under which totali- 
tarianism grows — poverty, illiteracy, hunger and 
disease. Nor can we hope for enduring peace 
until the spiritual aspirations of mankind for 
liberty and opportunity and growth are recog- 
nized as prior to and paramount to the material 
appetites which Communism exploits. 

Apart from any obstacles created by the Com- 
munists, this is a long-term process. Patience, 
resourcefulness and dedication are required as 
well as the creative application of knowledge, skill 
and material resources to the solution of funda- 
mental human problems, ancient in their origin. 
In that spirit, the Mutual Security Program is 
designed for the benefit of all free nations. 

dwight d. elsenhoavek 

The White House, 
April 20, 1955. 



LETTER TO SECRETARY DULLES' 

April 15, 1955 
Dear Mr. Secretary : 

The Mutual Security Act of 1954 provides for 
termination of the Foreign Operations Adminis- 
tration by June 30th of this year. Accordingly, 
I shall issue within a few days an Executive order 
transferring the affairs of the Foreign Operations 
Administration, except for certain military func- 
tions which are charged to the Defense Depart- 
ment, to the Department of State as of June 30, 
1955. Any subsequent transfers, modifications or 
elimination of functions, or other organizational 
changes, that should be determined advisable or 
necessary, prior to June 30, under the guide lines 
given here, will be covered in a supplementary 
Executive order. 

The Foreign Operations Administration, estab- 
lished two years ago, was intended to centralize all 
governmental operations, as distinguished from 
policy formulation, that had as their purpose the 
coopei'ative development of economic and militai"y 
strength among the nations of the free world. 
That function it has performed well, but the For- 
eign Operations Administration has been regarded 
by many as merely a temporary unit of Govern- 
ment, established solely to meet certain short-term 
economic and military requirements. It has come 
to be widely recognized, however, that the fmic- 

^ Released to the press at Augusta, Ga., on Apr. 16. 



May 2, J 955 



715 



tioiiri and the need for cooperative development of 
economic and military strength among the free 
nations are continuing and integral parts of the 
fabric of our international relations. The new 
organization is intended to reflect this public 
recognition. 

The placing of general responsibility for eco- 
nomic operations as well as for policy in this field 
within the Department of State offers assurance 
that, under a permanent government establish- 
ment, we are providing a long-range basis for this 
kind of international cooperation. It is emphatic 
recognition of the principle that the security and 
welfare of the United States are directly related 
to tlie economic and social advancement of all 
peoples who share our concern for the freedom, 
dignity, and well-being of the individual. 

In the reorganization of Mutual Security activi- 
ties two years ago, there was set forth a number of 
applicable basic considerations. In our discus- 
sions of recent weeks we have agi'eed that those 
considerations are still valid and should apply to 
the new organization and to the new administra- 
tive arrangements in the Department of State. 
This letter smnmarizes our discussions of these 
matters and of the arrangements which should 
govern the future operations of the Mutual Secu- 
rity Program. 

Two years ago I stated that the Secretary of 
State, under the President, must be the official 
responsible for the development and control of 
foreign policy and all relations with foreign gov- 
ernments, to include policies atfecting mutual se- 
curity. The policy authority then fixed in the 
Secretary of State is now extended to include 
supervising authority over operations. The Ex- 
ecutive order will provide for this. 

It also was stated that related mutual security 
operations should be brought together in a single 
organization under a single management. Con- 
sistent with this approach we should avoid disper- 
sal of operating responsibilities either within the 
Department or to agencies outside the Depart- 
ment. 

A third objective stated in 1053 was the freeing 
of the Secretary of State from operating responsi- 
bilities so that he, assisted by his Under Secretai-y, 
could devote a preponderance of attention to for- 
eign policy. These two important considerations 
are recognized in the Executive order which will 
assign maximum responsibilities to a single key 
official within the Department of State. 

716 



In accordance with tliese organizational guide 
lines, the following administrative aiTangements 
will obtain within the Department of State : 

1. A new semi-autonomous organizational unit, 
to be known as the International Cooperation Ad- 
ministration, will be established in the Department 
of State, to carry out the transferred functions. 

2. Provision will be made for a Director of the 
International Cooperation Administration who 
will be the key official within the State Department 
referred to above. 

3. The Dii-ector of the International Coopera- 
tion Administration will report directly to the 
Secretaiy of State and will, on the Secretary's 
behalf, give supervision and direction to the mu- 
tual security operations performed within the 
State Department. 

4. Except for those matters which, because of 
their nature, require final decision by the Presi- 
dent, the Secretary of State will be responsible for 
coordinating all mutual security programs, which 
will of course include the establislmient of ar- 
rangements with the Secretary of Defense for 
effectively coordinating mutual security programs 
involving the Department of Defense. 

5. Since time is pressing, it is essential that the 
work of reorganization begin without delay. The 
key to success is the individual selected to head the 
new bureau within your Department. He must be 
a man of such stature and standing and of such 
operational experience that j^ou can trust him with 
full responsibility in the field of operations, so as 
to minimize the demands upon your own time. 

If such a man is now known to you and available 
for the position, please recommend him to me 
promptly. If you need more time in the selection 
of a qvuilified person, then I request that you get 
in touch immediately with Mr. Joseph M. Dodge, 
who has been acting for me in working out the 
general principles of this reorganization, so that 
with him you may devise and set up temporary 
niivchinery fitted and empowered to begin at once 
the work of reorganization. 

6. I am instructing the Director of the Bureau 
of the Budget and my Advisory Committee on 
Government Organization, in connection with 
their general responsibilities for advising me on 
Executive Branch Organization, to give close at- 
tention to the new organizational arrangements 
and to recommend such organizational improve- 
ments as will be considered appropriate. 

Department of Sfafe Bulletin 



7. Any advisable or necessary changes in or- 
ganization and personnel should be accomplished 
in a manner that will ensure equitable treatment 
to the Government personnel employed in the Ad- 
ministration of the transferred programs. 

8. The appropriations for all the mutual secu- 
rity programs for the fiscal 3'ear 1956 should be 
made to the President, who will, as in the past, 
delegate the allocation of funds and other authori- 
ties to the appropriate agencies, at the same time 
setting certain limits on their exercise and reserv- 
ing cei-tain determinations to himself. 

No major reorganization of tliis character can 
be accomplished quickly and to attempt to do so 
could jeopardize the implementation of existing 
programs which are so important to our relations 
with other nations. The Foreign Operations Ad- 
ministration has a large staff which operates in 



many countries and administers a number of dif- 
ferent but related programs. It will take a mini- 
mum of six months to effectuate the desirable 
changes without unnecessarily disturbing projects 
and progi'ams now under way. 

It will, therefore, be necessary to obtain as part 
of the legislation to extend the mutual security 
programs beyond June 30, 19.55, authority similar 
to Section 525 of the existing Act which would 
give flexibility for a period of at least six months 
after the effective date of the transfer of the 
Foreign Operations Administration. 

Sincerely, 

DwiGHT D. Eisenhower 

The Honorable John Foster Dulles 
The Secretary of State 
Washington, D. C. 



Seventh Semiannual Report to Congress on the Mutual Security Program 



The President on March 11^. transmitted to the 
Congress a report on the mutual security program 
for the 6 months ended Decemher 31, WSJt.} 
Printed' below are the texts of the letter of trans- 
mittal; chapter /, entitled ''''Changing Direction 
and New Opportunities''' ; and the introduction to 
chapter II, '■''Far East and Pacific.'''' The remain- 
ing chapters are entitled ''''Near East, Africa, and 
South Asia^'' ''''Europe,^'' ''''American Republics^'' 
and '''Other Parts of the Program.''^ 



PRESIDENT'S LETTER OF TRANSMITTAL 

To the Congress of the United States: 

I am transmitting herewith the Seventh Semi- 
annual Eeport on the Mutual Security Program. 
Tliis report covers operations during the 6-month 
period June 30th-December 31st, 1954, carried out 
in furtherance of the purposes of the Mutual Se- 
curity Act of 1954. 



' H. Doc. 97, 84th Cong., 1st sess. For an excerpt from 
the report for Jantiaiy-June 19.54, see Bctlletin of Sept. 
13, 1954, p. 381. 



During tliis period, you will note there was a 
significant acceleration of ojijerations in Asia, 
where the bulk of the fi'ee world's population oc- 
cupies its greatest land mass, and where Com- 
miuiism is stepping up its efforts of expansion. 

These worldwide programs of military aid, eco- 
nomic development and technical cooperation are 
increasing the military security and economic 
progi'ess of the United States and our cooperating 
partners in the free world. 

DwiGHT D. Eisenhower 
The White House, 

March U, 1955. 



CHANGING DIRECTION AND 
NEW OPPORTUNITIES 

j\lutual security activities during the second half 
of 1954 reflected a further shift in program em- 
phasis to the economically less-advanced areas of 
the free world. This change in the pattern of 
United States foreign operations accords with the 
improvement in We.stern Europe's economic situa- 



Moy 2, 1955 



717 



tioii and responds to the current requirements and 
opportuiiitie-s for effective support to those under- 
dt'velopod countries which have demonstrated 
their will to go forward by invigorating their own 
efforts for stability and development. At tliis 
juncture, such support has the potential to pro- 
duce (he greatest gains, in terms of long-term se- 
curity and economic well-being, for the United 
States and the free world as a whole. 

In the 6-month period covered by this report, 
economic and technical cooperation programs in 
a number of countries — Iran, Egypt, Guatemala, 
for examples — were reshaped and strengtliened to 
take advantage of the enlarged possibilities for 
progress whicli stenuned from the recent settle- 
ments of long-standing difficulties. Additional 
quantities of necessary weapons and equipment 
were delivered to our partners in the free world 
defense effort. In .some countries — Formosa, 
Thailand, Turkey — military aid programs were 
stepped up to keep pace with pre.sent security re- 
quirements. An agreement was worked out with 
the Government of the Republic of Korea wliich 
permitted the Korean reconstruction and develop- 
ment program to proceed at a faster rate. Half a 
million Vietnamese who fled the Communist re- 
gime were helped to move southward to start life 
anew under democracy. Plans were developed 
with countries in all parts of the world to use 
United States agricultural surpluses to a larger 
e.xtent in the various programs abroad. 

These multiple actions characterized the make- 
up and direction of the mutual security effort un- 
der the program authorized by the Congress for 
the current fiscal year of operation. 

The Present Program 

For the fiscal year which will end on June 30, 
1955, a total of $2.8 billion in new funds was ap- 
propriated by the Congress for mutual security 
purposes. In addition, $2.5 billion of funds 
unobligated in previous years was authorized to 
be carried over for use in the current program. 
Virtually all of this carryover was earmarked for 
the supply of military weapons and equipment 
under the military aid agreements which we have 
with over .'JO countries around the world. 

New funds made available for mutual security 
programs have been reduced steadily in recent 
years, for the most part because of the gi-owing 
ability of Western Europe independently to (i- 

718 



nance its requirements from the dollar area. This 
fiscal year's appropriation of $2.8 billion was 
nearly $2 billion less than that of the previous fis- 
cal year, and some $4.5 billion — or 62 percent — 
below the appropriation for fiscal year 1952, the 
year of the first Mutual Security Act. 

For the 1955 fiscal year, roughly 45 percent of 
the new funds was appropriated for items which 
go directly to the armed forces of our partner 
nations to reinforce total free world security; 
about 15 percent was for programs which give ad- 
ditional support to their defense effort by pro- 
viding economic assistance; and some 15 percent 
was for development assistance, technical coopera- 
tion and a number of other purposes such as the 
program to aid Iron-Curtain escapees, our con- 
tributions to United Nations programs and funds 
for western Berlin. The remainder is accounted 
for by a fund of $700 million which was earmarked 
for assistance, as decided by the President, to the 
broad area of Southeast Asia and the "Western 
Pacific. A portion of this fund has already been 
put to use for carrying out the movement and re- 
settlement of the hundreds of thousands of refu- 
gees from communism in the Indochina region. 

Midway in the reporting period, the Foreign 
Operations Administration finished its first full 
year of operation under the Executive order em- 
bodying Reorganization Plan No. 7. The several 
agencies consolidated into Foa had, at the time of 
their incorporation, significant differences in ad- 
ministrative, fiscal, and programming processes 
which affected nearly every phase of operations. 
To remedy this situation, Foa carried out a thor- 
ough management self-appraisal. This study 
produced a plan for the integration of the dif- 
ferent existing systems into a single, comprehen- 
sive procedure for program planning, approval, 
and execution. The new processes are now in op- 
eration and permit a more effective use of assist- 
ance funds. 

The total number of technicians required for 
overseas service is rising as the technical coopera- 
tion program continues to grow. In the face of 
these increasing requirements, there is a shortage 
of qualified technicians who are immediately avail- 
able and suitable for work abroad. The integra- 
tion of responsibility for all program operations 
has made it possible to streamline and accelerate 
the recruitment procedures, but overseas person- 
nel i-ecruilment continues to be a problem. 

Department of State Bulletin 



Spotlight on the Underdeveloped Areas 

The importance of the underdeveloped areas of 
Asia, Africa, and Latin America has been brought 
home to us in many ways, in recent years with 
increasing and often disturbing emphasis as 
events on the world scene have heavily underlined 
the fact that the security and welfare of those 
areas are closely bound in with our own security 
and welfare. Together, the underdeveloped coun- 
tries hold the bulk of the world's population, oc- 
cupy the largest part of its land area, constitute 
the major source of its key minerals and raw ma- 
terials, and contain many of its most valuable 
military bases. It is not difficult to perceive, 
therefore, why it is in our interest to be deeply con- 
cerned with the stability of these countries, their 
rate of economic growth, their ability to meet the 
enlarged requirements of their people, and the 
success of their present efforts to strengthen them- 
selves and move forward in freedom by the demo- 
cratic processes appropriate to their own society. 

The Soviets, needless to say, are not unmindful 
of the vast human and material resources of the 
underdeveloped areas. If these resources should 
fall under Soviet influence, the road to the Com- 
munist end goal of world domination would be 
made relatively smooth. 

Of late, the Soviet apparatus has been intensify- 
ing its campaign to persuade the people in the less- 
developed countries that for them the Communist 
way is the best way to achieve rapid economic 
progress. The Ussr and Communist China have 
been trumpeting with increasing vigor about the 
enormous economic gains they are making, but 
omitting to cite the cost in human rights and the 
use of mass slave labor. Communist bloc na- 
tions have expanded their participation in trade 
fairs around the world, taking active part in 46 
such fairs in 1954. In 1954 also, about 25 new 
trade agreements were effected between Soviet bloc 
countries and free world nations, particularly 
those in the underdeveloped areas; this brought 
to about 120 the total of such agreements in effect 
during the year. Specific offers of Soviet tech- 
nical and capital assistance in industry and agri- 
culture have been forthcoming in growing number. 
These developments can be viewed as part of a 
concerted effort by the Soviet bloc to augment its 
multifarious expansionist activities by moving 
with greater strength into the arena of economic 
competition with the "West. 



Self-Help and U.S. Support 

Most of the underdeveloped countries, especially 
in the general region of Asia where since the war 
so many newly independent governments have 
undertaken self-rule, are well aware of the need 
to produce marked improvements in living condi- 
tions if they are to hold the loyalty of their people 
and keep alive the will to work out, by nontotali- 
tarian means, the enormous problems that con- 
front them. More and more of their national effort 
and budgetary expenditures are being directed 
into key projects which will help bring their agri- 
cultural, industrial, and power resources into full 
use. The Philippines, for example, is planning 
a basic economic development program calling for 
public and private investment of $2 billion in 5 
years. India is in the fourth year of its first 5-year 
plan which envisions substantial increases in agri- 
cultural and industrial production and expendi- 
tures of $4.7 billion from governmental and private 
sources. On the other side of the world, the Latin 
American countries — Brazil, Bolivia, Guatemala, 
among others — also are striving to solidify their 
economic base. Plans such as these are expressive 
of a determination on the part of the under- 
developed countries to give top priority to meet- 
ing recognized needs for greater output, a more 
balanced economic structure, a better health en- 
vironment, and a higher general standard of 
living. 

The degree to which outlined targets are met 
depends, of course, on domestic financial and tech- 
nical capabilities and the extent of external sup- 
port. Another complicating factor is the cost of 
defense. In many cases, the pace of developmental 
progress is seriously slowed down by the need to 
support military forces which will preserve in- 
ternal security and keep borders safe from 
aggression. Turkey spends about 40 percent of 
its total budget on various security and defense 
measures; Greece, about 35 percent; Pakistan, also 
about 35 percent. There are instances — as in For- 
mosa and South Korea — where defense spending 
runs as high as 60 to 70 percent of total budgetary 
expenditures. 

Under the mutual security program, the United 
States, along with its military assistance activities, 
has been contributing to the forward economic 
movement of the underdeveloped areas by various 
measures of defense support, technical coopera- 
tion, and supplemental development assistance. 



May 2, 7955 



719 



Defense Support. — Mutual security programs 
of defense support are carried out in a number 
of countries wliich have si<;ned military assistance 
agreements witii the United States. The basic 
purpose of such support programs is to supply 
the supplemental economic resources which a par- 
ticipating country needs if it is to keep its military 
strength at an adequate level and at the same time 
maintain its economic and political stability. 

The largest portion of funds for defense support 
lias been programmed for the Republic of Korea.= 
Up to $280 million of these funds was earmarked 
for fiscal jear 1955 to help the Korean people re- 
build their war-torn country and develop a more 
self-supporting economy. The implementation of 
the current program in Korea was delayed while 
the United States negotiated an agreement with 
the Korean Government on measures necessarj' to 
achieve the most efficient utilization of aid funds. 
Such an agi-eement was concluded in mid-Novem- 
ber 1954, and the progi'am began to move forward.^ 
Initial emphasis has be«n placed on the construc- 
tion of power-generating plants, improvement of 
transportation facilities, and manufacture of 
certain basic products, such as fertilizer and 
cement. In addition, the program for Korea will 
finance imports of consumer goods in short supply 
to help fill civilian needs and counteract the 
domestic inflation caused in great part by the large 
governmental expenditures for the Korean mili- 
tai-y establishment. Defense-support measures in 
the Far East are also being carried o\it extensively 
in Formosa and Soutli Viet Nam, and to a lesser 
extent in the Philippines, Tliailand, Cambodia, 
and Laos. 

United States activities in the Indochina region 
during the 6-month period were focused on the 
mass exodus from Comnmnist-held territory in 
North Viet Nam.* The United States Navy, to- 
gether with French naval and air units, helped 
move some 450,000 Vietnamese who chose to aban- 
don their homes and possessions rather than live 
in the oppressive atmosphere of conununism ; an- 
other 50,000 Vietnamese fled southward using 



' For an nrticlo on "United States Economic A.-^sistanro 
to Korea, 194.>-]!).")4," see ihid., Feb. 21, lOS."), p. 206. 

"For text of tlie Asreed MimUe initialed at .Seoul on 
Nov. 17, 1954, together with apiiendix A covering the eco- 
nomic proKram. see i6i'/., Nov. 29, 1954, p. 810. 

* See also "Bxodu.s : Keport on a Voluntary Mass Flight 
to l<>eedom, VIet-Nam, 11)54," ibid., Feb. 7, 1955, p. 222. 



other meajis of transportation. United States 
agencies in Viet Nam, working with the local au- 
thorities and assisted by specialists in refugee re- 
settlement and b}' voluntary relief organizations, 
helped build over 40 reception centers to provide 
the incoming Vietnamese with temporary facili- 
ties for shelter and care. By the end of 1954, 
nearly 300,000 of these refugees were already re- 
settled in permanent locations in 11 provinces of 
south and central Viet Nam. Hand tools, housing 
materials, and other essential supplies were being 
furnished to aid the newly established villagers in 
their efl'orts to become productive contributors to 
the economy of free Viet Nam. 

In the region of the Near East and South Asia, 
additional defense-support assistance is being 
given to Greece, Turkey, and Pakistan. Greece 
and Turkey are making a material contribution 
to total free world defense through their partici- 
pation in Nato. Pakistan has undertaken a larger 
military effort wliich adds to total free world 
sccm-ity ; it requires economic assistance to meet its 
present urgent requirements for consumer goods 
and raw materials. During the 6-month period, 
FoA allotted additional funds to help Pakistan 
finance such imports.^ 

In Europe, the Foreign Operations Administra- 
tion is providing defense-support aid in the cur- 
rent fiscal year to Italy, Spain, and YugoslaAna. 
Surplus agricultural commodities are being sold to 
the Federal Republic of Germany to support the 
rehabilitation effort in West Berlin. The impres- 
sive gains scored by Western Europe have made it 
possible to close out our economic assistance pro- 
grams in most of the countries of that area. 

Technical. Cooperation. — Joined with the Unite<l 
States in technical cooperation programs at the 
end of 1954 were 15 countries and 11 territories 
in the Near East, South Asia, and Africa; 19 
countries and 9 territories in Latin America: and 
9 countries in the Far East — all participating in 
the growing effort to share technical knowledge 
and skills for the betterment of the free world. 

The concept of technical cooperation, in a rela- 
tively short span of years, has been given prac- 
tical application in nearly every part of the globe. 



' See also "The Development of United States Policy in 
the Near East, South Asia, and Africa During 19.54 : Part 
III," ihid., Feb. 28, 19.55, p. 338. For texts of defenst^ 
supiwrt and surplus commodity agreements with I'aki 
Stan, sec ihid., Feb. 21, 1955, p. 308. 



720 



Department of State Bulletin 



It has attracted thousands of enthusiastic adher- 
ents, even winning over the more skeptical, as 
farmei-s, villagers, and factory workers have di- 
rectly experienced material benefits in terms of 
more food, improved health and housing, more 
productive teclmiques, and better educated chil- 
dren. Because of these progi'essive gains, the 
participating governments not only have multi- 
plied their requests for technical cooperation but 
they also have substantially enlarged their con- 
tributions of fimds, facilities, and personnel to 
the many joint projects under way. These con- 
tributions have risen to the point where, on an 
equivalent value basis, they now average two to 
three times our own. 

In response to the broadened demand for spe- 
cialist skills and demonstration projects, Foa 
currently has about 1,750 tecluiicians in the field 
working with cooperating governments and peo- 
ple on joint programs. These programs include 
technical assistance in individual pilot and train- 
ing projects in eight main fields which are funda- 
mental to the advancement of an underdeveloped 
country : agi-iculture and natural resources ; in- 
dustry and mining ; transportation ; labor ; health ; 
education ; public administration ; and community 
development. They include such activities as 
demonstrating water-spreading and irrigation 
teclmiques in the Arab States, helping to establish 
national rural extension services in Iran and In- 
dia, teaching health technicians to caiTy on in- 
dependently in Brazil's Amazon Valley area, 
demonstrating practical education methods in 
Ethiopia, and assisting in mineral surveys and 
core-drilling in the Philippines. 

More foreign nationals have been brought to 
this country for training programs which permit 
first-hand study and observation of American 
technology and principles. There were several 
new training programs initiated in the second half 
of 1954. Foa joined with the American Farm 
Bureau Federation to sponsor a training program 
which will bring, over a 2-year period, 600 young 
farmers of friendly foreign countries to the United 
States to live and work with American farm fam- 
ilies. About 200 will be brought in 1955, and 
another 400 in 1956. After 1956, the Farm Bu- 
reau plans to continue the program with the coop- 
eration of farm organizations in the countries 
involved. Such agricultural work-training pro- 
grams have proved a most effective means of giv- 



ing young people of other nations a better under- 
standing of American ideals and rural community 
life. 

To afl'ord the Guatemalan people, recently freed 
from Conununist domination, an opportunity to 
see democracy at work, 100 teachers from Guate- 
malan public schools were brought to the United 
States for special courses at five southwestern 
universities. The sum of $1.3 million was allo- 
cated for teclmical cooperation programs which 
are being drawn u^d jointly with the newly formed 
Government of Guatemala. 

In another phase of the effort to help people 
from the underdeveloped areas broaden their 
understanding of the problems that confi-ont 
them, Foa sponsored an "Institute on Economic 
Development" at Vanderbilt University in Ten- 
nessee. 

Participants brought to tliis country under the 
technical cooperation program had expressed the 
need for a greater comprehension of the different 
problems that arise as a country's economy de- 
velops and expands. They were particularly in- 
terested in this evolutionai-y process as it had 
taken place in the United States. The Institute 
at Vanderbilt University furnished an opportu- 
nity for the foreign participants to study the di- 
verse factors which influenced American economic 
development, using conditions in their own lands 
as a frame of reference. In this way, they were 
enabled to apply the specialized knowledge ac- 
quii'ed in technical cooperation training programs 
to particular situations encountered in their home 
environment. From every report, the Vander- 
bilt Institute program was a success, and similar 
institutes are therefore being planned. 

American vokuitaiy agencies are assisting Foa 
in a number of technical cooperation activities, 
particularly those which deal with community de- 
velopment. Under contract with Foa, the Near 
East Foundation is carrying foinvard a demon- 
stration community development project in Iran, 
and similarly the Society of Friends is working in 
India. The International Voluntary Service has 
established a training school for village workers 
in northern Iraq. 

The 6-month period saw an increase in the num- 
ber of American educational institutions taking 
part in technical cooperation as well as an expan- 
sion of the fields in which they are working. As 
of December 31, 1954, a total of 43 colleges and 



May 2, 7955 



721 



universities were carrying out 59 contracts for 
technical cooperation in tlie underdeveloped areas 
of the world, l."5 more colleges and universities and 
23 more contracts than at the end of the preceding 
6-month period. Examples of the new luiiversity 
contracts were: University of Michigan to assist 
in operations of a training school for mechanics in 
Mexico; North Carolina State College to help 
Peru's National School of Engineering in textile 
engineering instruction; University of California 
to assist National Taiwan University on Formosa 
to improve agricultural research and extension; 
Tuskegee Institute to work with the Ministry of 
Education in Indonesia to develop technical skills 
needed for the economic progress of the country; 
Colorado A. & M. College and University of Pcnn- 
sj'lvania to advise univei-sities at Peshawar and 
Karachi in Pakistan on educational training and 
public and business administration. 

Following the procedures used in other techni- 
cal cooperation programs, universit}- contracts are 
initiated through the foreign government which 
requests such assistance. B\' these various types 
of university contracts, the United States is help- 
ing to encourage the buildup of indigenous sources 
which will be able to provide, on a continuing 
basis, the technical training and administrative 
skills, and the advisory and extension services 
which underdeveloped countries so urgently need 
to speed their rate of progress. 

Development Asshtancc. — This type of assist- 
ance in general finances the procurement of the 
equipment and commodities which, when inte- 
grated with available resources in a particular 
country, will make it possible to carry out selected 
key activities in its development programs. A 
limited amount of development assistance is being 
furnished to certain countries in the underde- 
veloped areas, primarily in the Near East, Africa, 
and South Asia. 

During the second half of 1954, the Foreign 
Operations Administration authorized additional 
assistance for Iran to provide foreign exchange for 
essential imports, pending the return of Iranian 
oil to world markets. Commodities and equip- 
ment were progranuncd for Jordan and Ivcbanon 
under the first development assistance agreements 
concluded with Arab states. Such assistance will 
help these two countries in their elforts to push 
aheael with some of their jilans for improved irri- 
gation, more food production, and better roads 



and housing. An agreement also was concluded 
with Egypt, and $40 million will be provided for 
development projects, mainly in transportation 
and water supply for rural areas. Final agree- 
ments were worked out with the Government of 
India to augment the capital structure of a pri- 
vately controlled industrial development corpora- 
tion to be established in India. The equivalent in 
rupees of up to $15 million will be loaned to the 
new Industrial Credit and Investment Corporation 
from funds derived from the sale of steel imported 
under the mutual security program. Additional 
capita], in the amount of about $20 million, will be 
contributed by the Ibrd and private interests. 

Some development assistance funds are also 
being used in Latin America. In line with the 
United States pledge of support to the new Com- 
munist-free Government of Guatemala, Foa has 
undertaken, in addition to the technical coopera- 
tion programs previously mentioned, to assist the 
Guatemalan efi'ort for economic recovery by con- 
tributing commodities and equipment to critically 
needed development and construction projects. 
During the period also, Foa sent an Area Develop- 
ment Survey Group to Bolivia to study means of 
developing sections of the 80 million acres of vir- 
tually unpopulated and uncultivated lowlands 
around Santa Cruz. The Group has completed its 
evaluation, and its recommendations are being 
studied in connection with Bolivia's own develop- 
ment plans. 

In programming development assistance activi- 
ties, FoA has made provisions where possible to 
put the aid furnished on a repayable basis. For 
this fiscal year, a minimum of 30 percent of all 
development assistance financing will be in loan 
form, in accordance with the Mutual Security Act 
of 1954. In general, these loans are being nego- 
tiated within the framework of long-period, low- 
interest terms. 

Capital Is a Major Need 

United States technical cooperation and limited 
development assistance are presently giving im- 
portant support to specific phases of the self- 
development effort, but such assistance can do 
only part of the job. More comprehensive meas- 
ures must be undertaken if hundreds of millions 
of jjcople are to be given a fair chance to earn 
more than just the bare necessities of life, and if 



722 



Deparlment of State Bulletin 



they are to be kept from turning away in sheer 
desperation and disillusionment from tlie free 
world association. 

The achievement of a fuller and more rapid 
growth is vital not only to the economies of the 
underdeveloped areas. It is vital also to the entire 
free world economy, for the economic expansion of 
the more advanced nations, including our own 
economic expansion, is directly tied in with the 
rate of increase in production and consumption of 
tlie less developed countries and with the contrac- 
tion or enlargement of their export and buying 
power. As fully participating sellers and pur- 
chasers in a thriving world market, the presently 
underdeveloped countries can immeasurably fur- 
ther the prosperity and welfare of us all. Handi- 
capped in their growth, they handicap us all. 

The problem of economic underdevelopment is 
a perplexing one which has been the subject of 
numerous studies over the past few years. These 
studies, while varying in emphasis and approach, 
have generally served to identify the main ele- 
ments of the problem. Though the list of obstacles 
to economic development is a long one, one of the 
more important retarding factors is the lack of 
capital resources. With the great bulk of their 
people barely meeting their minimum daily needs 
so that there is little or no opportunity to accumu- 
late monetary savings, the underdeveloped coun- 
tries cannot now generate independently sufficient 
domestic capital to finance establishment of the 
basic production, transportation, power, and com- 
munications facilities upon which agricultural and 
industrial improvement so heavily depend. 

There is an additional difficulty in that these 
basic facilities must not only be established as 
primary ingredients of a balanced economic ex- 
pansion, but they must also be developed in co- 
ordination with one another. It does little good to 
increase the output of a particular product, for 
example, unless means exist whereby that product 
can be brought to tlie market place. If it is a c(mi- 
modity intended for internal consumption, such as 
iwheat or rice, there must be roads and railways by 
which it can be readily distributed within the 
country from places of supply to places of demand. 
If it is an export commodity, such as tin or rubber, 
ports must be available to connect with world trade 
cliannels. The construction of the necessary 
freight cars and dock cranes calls for metal-proc- 
essing plants and power plants. The establish- 



ment of such plants, in turn, must be geared to 
the power of the economy to absorb and use the 
added capacity, to the technical skills available, 
and to the ability to shift manpower and other 
resources without crippling dislocations. This is 
but one illustration of the whole complex chain of 
factors that need to be considered in proper rela- 
tionsliip if development is to proceed in an effec- 
tive way. 

In some countries, the slow rate of indigenous 
capital formation is offset to a large degree by a 
substantial inflow of private and public financing 
from abroad. Outside resources of this type have 
been an invaluable stimulant to broadened country 
development. The hard fact is, however, that 
many of the underdeveloped countries are still 
far short of capital for even modest improvement 
of plants or public services. This is particularly 
true in Asia where political hazards, remoteness, 
internal insecurity, and a general lack of consumer 
purchasing power, in combination, have held pri- 
vate foreign investment to a trickle. United 
States net private direct investment in South and 
Southeast Asia since World War II, excluding 
reinvested earnings, has averaged about $12 mil- 
lion a year, compared to a postwar average annual 
investment of about $220 million in Latin America 
and $200 million in Canada. 

Under present conditions, private capital avail- 
ability is not sufficient to eliminate the need in 
Asia for initial public financing measures, through 
long-term loans where feasible and through grants 
where necessary, which would put critically needed 
development projects into motion. By gradually 
building up their basic facilities and public serv- 
ices and eliminating the present obstacles to pro- 
ductive enterprise, and by thus engendering a cli- 
mate of rising confidence and stability, the Asian 
governments will have established the conditions 
necessary to attract greater contributions of pri- 
vate risk capital, both indigenous and foreign. 

At the same time, these governments can take a 
number of measures which will stimulate an im- 
mediate expansion in the flow of private capital 
from internal sources. They can move ahead more 
rapidly in establishing soimd budgetary and fiscal 
policies, reforming inequitable tax structures, and 
otherwise providing greater incentives for private 
investment. Manj' of the governments already are 
working successfully along these lines. 

The present shortage of capital in the under- 



May 2, J955 



723 



developed areas in general cannot be overcome 
without some initial financial impetus being sup- 
plied from the outside. It becomes a question, 
then, of those nations which require capital financ- 
ing to explore with those nations on this con- 
tinent and in Europe, which have the means for 
such financing, the many possibilities for supple- 
mentaiy, coordinated actions which would help 
remove the clogs to economic progress and assist 
the endeavors of millions of people to translate 
their vast development potential into development 
actuality. 

Military Assistance for IMutual Security 

The nndti-nation conferences undertaken in the 
latter part of 1954 to strengthen free world secu- 
rity measures directly involved the scope and oper- 
ations of our military assistance programs. 

In Europe, the I^ondon and Paris proposals for 
a Western European Union, which would ally Ger- 
many with Nato as a full member, brought the 
question of military assistance to the Federal Re- 
public into sharpened focus. To be ready for 
rapid action upon conclusion of the necessarj- Eu- 
ropean agreements, the Departments of State and 
Defense devoted attention to plans for meshing 
United States military aid capabilities with Ger- 
many's requirements and responsibilities as a Nato 
partner in the defense of Europe. These plans in- 
volved sucii matters as preparation for a bilateral 
assistance agreement with AVest Germany and the 
establislnnent of a United States Miiitaiy Assist- 
ance Advisory Group in the country. Ratification 
of tlie agi'eements also would permit negotiation 
on other aspects of the mutual security program, 
such as the provision of priority weapons and 
military training. 

United States military aid shipments to I']urope 
during the second half of 1954 slackened off some- 
wliat, pending the outcome of negotiations on the 
Western European Union. Deliveries of some 
$700 million worth of weapons and equipment 
were made during the 6-month period. These de- 
liveries included, in addition to military equip- 
ment for Nato nation.s, equipment for the armed 
forces of Spain and Yugoslavia to help tiiose coun- 
tries strengthen their capabilities for defense. 
Cumulative materiel shipments to P^urope (ex- 
cluding Greece and Turkey) through the end of 
1954 amounted in value to $7.4 billion. 

The fourtli annua! review was held in the last 



months of 1954 to assess Nato's present military 
capabilities and the future direction of its efforts. 
Discussions held by the 14 Nato member nations 
indicated tluit European expenditures in fiscal 
year 1955 for military security will continue at a 
rate of about $11 billion, about the same level as 
in fiscal year 1954 and more than twice the amount 
spent for defense before the Korean conflict. 
Priority will remain on improving the effec- 
tive strength and readiness of existing forces, 
rather than on achieving numerical increases. 
The annual review showed that although Nato 
forces at the end of 1954 were larger and in a 
better state of preparation than at the beginning 
of 1954, they did not fully meet the goals set for 
the year. Continuing modernization of existing 
forces, however, particularly the air components, 
together with the introduction of new weapons 
and a growing nuclear capacity for Nato support, 
is enabling the Western alliance to build and main- 
tain the strength necessary to repel at the thresh- 
old an all-out aggressive attack in Europe. 

In the Far East, the United States had shipped, 
under the mutual security progi-am, $1.9 billion 
worth of militaiy weapons and equipment to the 
countries of the area through December 31, 1954. 
Military aid to Thailand was increased ; in addi- 
tion, more funds were pi'ogrammed for defense 
support in the country. In November, the neces- 
sary ratifications were exchanged to bring into 
force the IMutual Defense Treaty between the 
United States and the Republic of Korea. In 
December, the United States and the Republic of 
China on Formosa signed a Mutual Defense 
Treaty. 

In the Near East, Africa and South Asia, 
United States military aid shipments were con- 
tinued to Greece and Turkey to assist the efforts of 
these strategically located nations to fulfill their 
Nato military commitments. Initial deliveries 
of weapons and equipment were made to Pakistan 
and Iraq under the recently concluded militaiy 
assistance agreements, and United States Military 
Assistance Advisory Groups were established. 
Additional military supplies and training were 
furnished to Iran and Ethiopia. In Latin Amer- 
ica, arrangements were made to permit the new 
anti-Communist Government of Guatemala to 
purcliase limited amounts of military equipment 
for strengthening its internal secm'ity. 

Global Military Shipments. — Shipments by 



724 



Deparfmenf of Sfafe RuWefm 



the Department of Defense of weapons, ammuni- 
tion, and other military equipment have expanded 
substantially the defense capabilities of the many 
nations with which the United States has con- 
cluded military assistance agreements. The value 
of such shipments during the second half of 1954 
amounted to $1.1 billion. The total value of mili- 
tary grant aid shipments to all parts of the world, 
from the beginning of the military assistance pro- 
gram in October 1949 through December 31, 1954, 
amounted to $10.5 billion. 

On a global basis, the major items delivered 
through December 1954 included: 

146,644 electronics and communications items 

206,836 motor transport veliicles 

36,714 tanks and combat vehicles 

36,538 artillery pieces 

50 million rounds of artillery ammunition 

868 Navy vessels 

6,416 aircraft 

Over 2.2 million small arms and machine guns 
(vere shipped, along with about 1.6 billion rounds 
jf small-arms and machine gun ammunition. 

Ojfshore Procurement. — Through the end of 
calendar year 1954, the United States had placed 
in friendly countries a total of $2.6 billion worth 
jf contracts for procurement of military items.® 
Under these offshore procurement contracts, our 
nilitary partners are manufacturing for us certain 
irmaments and equipment for use in our military 
issistance programs. Such contracts help our 
lilies to strengthen their basic facilities for de- 
fense production and reduce their dependence on 
;he United States for replacements and spare 
r)arts. 

The bulk of these contracts, $2.5 billion out of 
he $2.6-billion total, has been placed in European 
joimtries. The remainder has been placed in 
jrreece, Turkey, Japan, Formosa, and the PMlip- 
lines. Through December 31, 1954, the United 
States had paid for $1 billion worth of military 
nateriel manufactured overseas, of which over 
5900 million worth had been turned over to recip- 
ent governments. 

These far-spread military assistance measures 
-o reinforce the defense efforts of our partner na- 
ions are increasing the collective ability of the 
vhole free world to construct a shield against 
iggressive attack anywhere, so that independent 



peoples can work in peace and freedom for their 
economic and social advancement. 



FOA Farm Surplus Programs 

To put United States surplus farm products 
to constructive use overseas, Foa is currently work- 
ing on three broad programs. 

First, it is selling cotton, corn, wheat, beef, dairy 
products, fruits, fats, and other surplus agricul- 
tural commodities to friendly foreign countries 
which pay in their own currencies. These sales 
are made in connection with our mutual security 
program to meet the congressional requirement 
that not less than $350 million of mutual security 
funds be used in fiscal year 1955 to finance the ex- 
port and sale of American agricultural surpluses. 
By December 31, 1954, Foa had authorized sales 
of $103 million worth of such surpluses to 11 
countries. Other negotiations are in process, and 
it is expected that the $350-million target will be 
met before June 30, 1955. The local currencies 
obtained from these surplus sales will be used for 
purposes which would carry out the objectives of 
the mutual security program. 

Seco7id, FoA is working with other United 
States Government agencies, imder title I of the 
Agricultural Trade Development and Assistance 
Act, in a 3-year program to sell up to $700 million 
worth of surplus commodities for foreign cur- 
rencies.^ During the July-December period of 
1954, it assisted the Department of Agriculture in 
the initial preparation of detailed sales proposals, 
and by the end of 1954 programs were approved 
under title I to sell over $335 million worth of 
surplus products to eight countries. Sales for the 
current fiscal year, ending June 30, 1955, are ex- 
pected to total about $453 million, calculated on 
the basis of Commodity Credit Corporation in- 
vestment in the conunodities and handling costs. 

Third, FoA is providing assistance, under title 
II of the Agricultural Trade Development and 
Assistance Act, in meeting famine or other urgent 
relief requirements of friendly peoples. Nearly 
$70 million worth of surplus commodities was 
used under title II for disaster and other relief 
purposes in the 6-month period covered by this 
report. Food and feedstuffs, marked as gifts 
from the American people, were distributed 



* For a report on ofCsliore procurement by the U. S. 
European Command, see ihid., Oct. 18, 1954, p. 567. 

Aay 2, J 955 

a411ftQ RK 5 



' For a report by the President to Congress on activities 
under the act, see ihid., Jan. 31, 1955, p. 200. 

725 



through the League of Red Cross Societies to as- 
sist the distressed peoples in the flooded area of 
the Danube Basin in Europe, even reaching 
places behind the Iron Curtain. Shipments of 
375,000 tons of wheat were authorized for Yugo- 
slavia to help meet its urgent requirements for 
food. The people of Haiti, stricken by Hurri- 
cane Hazel, were helped through a critical period 
of need by timely shipments of rice, flour, corn- 
meal, and other food items. Some of this food 
was rushed to Haiti by air to relieve spot short- 
ages on a priority basis until the necessary ar- 
rangements for ocean shipping could be made. 
Emergency shipments were made also to Bolivia, 
Pakistan, Nepal, and Libya. 

FoA also carried out for the second j'ear a 
program to distribute food parcels during the 
year-end holidays to families in all parts of the 
free world. Food packages, marked with the 
clasped-hand symbol of the United States mutual 
security program, were delivered to some 20 
American nonprolit voluntary agencies for wide- 
scale distribution to families in 45 countries. 
These food packages brought a message of good 
will from the American people during the holi- 
day season. 



FAR EAST AND PACIFIC 

The United States worked closely anil actively 
with other interested free nations in the second 
half of 195-1 on measures to strengthen the security 
structure in the Far East. Free world security 
arrangements in the area grew in strength and 
number. E.xisting security pacts with Australia, 
New Zealand, the Philippines, and Japan were 
augmented by the final exchange of ratifications 
on the Mutual Defense Treaty with the Republic 
of Korea, by the conclusion of a defense treaty 
with the Republic of China on Formosa, and by 
the new arrangements under the Southeast Asia 
Collective Defense Treaty. 

The Southeast Asia Collective Defense Treaty, 
which includes Australia, France, New Zealand, 
Pakistan, the Philippines, Thailand, the ITnited 
Kingdom, and the United States, provides that in 
the case of aggre.ssion by armed attack each of the 
countries will act to meet the common danger in 
accordance with its constitutional processes. The 
treaty further provides that if any party believes 
that the integrity of the treaty area is menaced 

726 



by armed attack, the parties shall consult imme- 
diately to agree on measures which should be taken 
for the common defense. Only a Communist 
armed attack will be regarded by the United 
States as necessarily dangerous to our peace and 
security. The protocol also extends treaty bene- 
fits to Cambodia, Laos, and free Viet Nam. It 
must be noted, however, that the Indochina armi- 
stice created certain obstacles to these three 
countries becoming actual parties to the treaty at 
the present time. 

Nations in the Far East with which we have 
military assistance agreements are being furnished 
with modern aircraft, weapons, and other supplies 
to fill equipment shortages and are being given 
training guidance to enable them to put their 
armed forces into position for effective defensive 
action. Cumulative shipments of military ma- 
teriel to these nations through the end of 1954 
amounted in value to $1.9 billion. 

The terms of the cease-fire agi'eement in the 
Indochina region prohibited the shipment of ad- 
ditional military equipment into Viet Nam. Con- 
sequently, except for providing maintenance and 
spare parts for the ships and planes needed to as- 
sist in the evacuation of North Viet Nam, such 
shipments were suspended on the effective date of 
the agreement. The military supplies originally 
earmarked for the Indochina area either were di- 
verted, or are being reprogrammed, to assist the 
buildup of forces in other countries receiving mili- 
tary assistance. 

The buildup of military defensive strength is 
an urgent requirement for achieving greater se- 
curity in the Far East, but it is by no means the 
sole requirement. The same physical proximity 
to the centers of communism which brings the 
threat of military aggression so close to the borders 
of free Far Eastern nations also provides wide op- 
portunities for subversive tactics, particularly 
tho.se which seek to exploit the popular discontent 
that results from inadequate economic progress. 

The independent governments of the Far East 
are laboring under handicaps of insufficient finan- 
cial resources, heavy defense costs, and technical 
and professional shortages everywhere. These 
governments are making strenuous attempts to 
push their economic development programs for- 
ward at a rate which wiW satisfy the immediate 
needs of their people and demonstrate in a tangible 
way that the democratic method, rather than the 
Communist method, is the right way of raising 

Department of State Bulletin 



living standards. They must be helped in their 
efforts to succeed, for success will not only bring 
them greater stability and hope for the future ; it 
will also keep valuable human and material re- 
sources on the side of the free world. On the 
other hand, failure could produce only the greatest 
of setbacks for all freedom-loving people. 

Mutual security activities have centered more 
and more in the Far East in recognition of the 
immediate need for external aid in the develop- 
ment of the area's indigenous resources and skills. 
For the fiscal year 1955, mutual security programs 
for the Far Eastern countries, other than programs 
for military assistance and direct forces support, 
total about $555 million.^ 

Though they may vary in length and direction, 
the roads that each country must traverse on the 
way to satisfactory economic development cover 
similar terrain and present the same obstacles to 
progi'ess: an economy too greatly weighted in 
favor of agriculture, undue dependence on a few 
main export items for exchange, widespread illit- 
eracy and poor health conditions, and an inade- 
quate rate of capital formation to initiate the nec- 
essary corrective measures. Japan, with a more 
developed and diversified economy, is in somewhat 
of a more favorable position, but it suffers from 
the inability of other Far Eastern nations to pur- 
chase more of its products and from the need for 
large imports of raw materials. 

The countries of the Far East are seeking, to a 
greater extent than heretofore, ways by which 
regional and interregional action can promote 
more rapid economic development and thus in- 
crease their internal stability and standards of 
living. The membership of the Consultative 
Committee of the Colombo Plan has been broad- 
ened to include additional countries in the area, 
and the Consultative Committee has the potential 
for becoming more important as a vehicle for coor- 
dinating and accelerating country development 
programs. In the Southeast Asia Collective 
Defense Pact, the signatory countries agi-eed to 
cooperate in promoting economic progress and 
social well being. As the year 1954 ended, various 
exploratory discussions and policy reexaminations 
were taking place with a view to bringing about 
more effective development programs. 

'Program data in this chapter reflect approved pro- 
grams as of March 1, 1955. [Footnote in the original.] 



Recent Developments in 
Foreign Relations 

Statement hy Secretary Dulles 

White House press release (Augusta, Ga.) dated AprU 17 

I gave the President a review of recent develop- 
ments in the field of our foreign relations. 

As regards Europe, I was able to report a steady 
jjrogi'ess in the program for bringing into force 
the treaties for German sovereignty, German 
entry into Nato, and the creation of Western 
European Union. I told the President that it was 
hoj^ed to have a meeting of the Nato Ministerial 
Council early in May, on the assumption that the 
Federal Kepublic of Germany would, by then, be 
eligible to attend ; and that at that time the For- 
eign Ministers would expect to discuss and, I 
hoped, advance concrete plans for new discussions 
with the Soviet Union. 

We discussed the developments regarding Aus- 
tria. All the facts are not yet known, and imtil 
they are, nothing should be taken for granted. 
But on the basis of what is known, it seems that 
the Western nations are beginning to reap the 
first fruits of a policy of patient firmness. It 
seems that the Soviet Union now is willing to alter 
its 10-year stubborn policy of maintaining indefi- 
nitely Red forces of occupation in Austria. The 
change is, I believe, a first dividend resulting from 
the assurance of increased unity and strength in 
Western Europe. I have always felt that unity 
in Western Europe would make more likely con- 
structive action by the Soviet rulers. 

I reported to the President on the situation in 
Viet-Nam. There, the Central Government grap- 
ples with the problem of bringing about national 
unity. That, above all, involves the authority of 
the Central Government over the National Police 
now controlled by a Saigon group known as the 
Binh Xuyen. It also involves relations with the 
Hoa Hao and Cao Die sects, which exercise some 
independent authority witliin certain areas. The 
situation is difficult, but the present problems are 
neither unexpected nor insoluble. There is no 
reason for discouragement. 

In relation to China, we discussed the grave im- 
plications of an extensive buildup, now in prog- 
ress, by the Chinese Communists of offensive air- 
power on the China mainland opposite Formosa. 

In this connection, President Eisenhower spoke 
of the Bandung conference, now opening. He 



May 2, 7955 



727 



expressed the hope that it will heed the universal 
longing of the peoples of the world for peace and 
that it will seek a renunciation of force to achieve 
national aml)itions. The President hailed the 
Bandung conference as providing an opportu- 
nity, at a critical hour, to voice the peaceful aspi- 
rations of the jjeoples of the world and thus exert 



a practical influence for peace where peace is now 
in grave jeopardy. Such an influence, if it pre- 
vailed, would ojien a new era of social and eco- 
nomic advancement for the Asian-African peoples 
and provide them an opportunity to build solid 
and sustaining foundations for responsible self- 
government and durable national independence. 



Pan Americanism —Product of a Great Design 



Address hy Secretary Dulles * 



A little over 6 weeks ago, at Bangkok, I re- 
minded the Manila Pact Coimcil that the foreign 
policy of the United States of America has always 
rested on two propositions. One is that we want 
peace and liberty for ourselves. The other is that 
we ourselves cannot be sure of either liberty or 
peace unless other nations have them likewise. 
And I pointed to the llio Pact and the Organiza- 
tion of American States as being rooted in that 
prinuiry and constant international policy of the 
United States Government.^ 

When President John Quincy Adams accepted 
the invitation for the United States to take part in 
the first international conference of American 
States, the Congress of Panama, 129 years ago, he 
stated an inter- American policy which is still our 
policy today. In a message to the United States 
House of Representatives, President Adams enun- 
ciated three principles upon which he deemed it 
would be wise to lay the corner.stone of all our 
future relations with the other independent Amer- 
ican peoples, of which there were then only eight. 

First and paramount of these, he said, was a 
refusal to look only to our own selfish advantage. 
Next was cordial gootl will, and third, fair and 
e<jual .sovereignty. And he said of om* proposed 
participation in that first inter-American confer- 
ence — I quote his words: 



' .Made at the Pan American Union, Washlnston, D.C., 
on Pan American Day, Apr. 14 (press release 206). 
* BuLLBTiN of Mar. 7, 1955, p. 373. 

72a 



It may be that, with the lapse of centuries, no other 
opportunity so favorable will be presented to the Govern- 
ment of the United States to subserve the benevolent pur- 
poses of Divine Providence, to dispense the promised bless- 
ings of the Redeemer of manland, to promote the prev- 
alence in future ages of peace on earth and goodwill to 
man, as will now be placed in their power by participating 
in the deliberations of this Congress. 

That the Congress of Panama will accomplish all or 
even any of the transcendent benefits to the Imman race 
which warmed the conception of its first proposer [con- 
tinues President Adams' message] it were, perhaps, in- 
dulging too sanguine a forecast of events to promise. It 
Is, in its nature, a measure speculative and experimental. 
The blessing of Heaven may turn it to the account of 
human improvement. Accidents unforeseen and mis- 
chances not to be anticipated may baffle all its high pur- 
poses and disappoint its fairest expectations. But the 
design is great, is benevolent, is humane. 

We all know that there has been no lack of those 
unforeseen accidents and unanticipated mis- 
chances. All the American peoples have suffered 
them time and again in major proportions during 
the intervening generations. As a matter of fact, 
on a smaller scale, they struck at our own partici- 
pation in the Congress of Panama itself. One of 
our two delegates died on the way, and the other 
arrived only after the Congress had adjourned. 
Nevertheless, Pi-esident Adams made clear our 
moral presence at that meeting. 

Neither he nor Bolivar would have been sur- 
prised, their faith being what it was, in our pres- 
ence here today. This House of the Americas is 
outward evidence of the kind of solidarity, based 

Department of Stale Bullelin 



on mutual trust among nations, which has become 
a guaranty of security to the free peoples of 
America and indeed one of the safeguards of 
freedom in the world. 

Anniversary of Pan American Union 

I am happy to recall also that this Pan Ameri- 
can Day which we are celebrating is the G5th 
anniversary of the first meeting, here at Wash- 
ington, of what became the International Union 
of American Republics, later to be known as the 
Pan American Union — a term now limited to the 
secretariat — and finally, as the tremendously sig- 
nificant Organization of American States. 

This great inter- American system, which was 
first a vision and a dream and then an expression 
of faith, has become in our own time the most 
solid international organization of fi-ee peoples 
on earth. It is the family tree of America — its 
multiple roots deep in our common New World 
history — its 21 branches each a proud, independent 
nation, its rich fruits beneficial to all mankind. 
After more than a century and a quarter, Bolivar's 
prophetic declaration that in the freedom of the 
Americas lies the hope of the world has lost 
neither veridity nor immediacy. 

It is historic fact that the active, effective co- 
operation of the American Republics during the 
past half-century has established working models 
for other areas. The structure of the United Na- 
tions itself benefited fi'om our experience in the 
Americas, and the Organization of American 
States continues to be one of the regional groups 
which contributes to making the principles of the 
United Nations Charter moi-e effective and more 
stable. 

Similarly, the Rio Treaty, our Inter- American 
Treaty of Reciprocal Assistance, has served as a 
prototype for the North Atlantic and other 
mutual defense arrangements. The two funda- 
mental features of the Rio Treaty are the pro- 
visions relating to collective self-defense and 
common action in the event of armed attack, and 
• to the steps which should be taken when we are 
confronted with situations that threaten the peace 
and security of the American States but that fall 
short of an armed attack. The framework of 
many collective defense treaties which free na- 
tions have built since 1947 is based upon these two 
features. 

The most recent example of free peojjles joining 



together to safeguard their independence is the 
Southeast Asia Collective Defense Treaty signed 
at Manila on September 8, 1954. In the prepara- 
tion of this treaty it was recognized that perhaps 
the greatest threat confronting the parties in the 
area was that of subversion ; that is, of aggression 
short of open, armed attack. Article C of the Rio 
Treaty was found to contain a most useful formula 
for covering this situation. The drafters of the 
Manila Pact consequently borrowed heavily from 
its idea and also from its actual language. 

Thus it is clear that the Rio Treaty has con- 
tributed by precept and example toward fortify- 
ing the collective security of free men in both 
hemispheres. In this progressive action, regional 
cooperation of the kind in which this Organiza- 
tion has had over a half -century of experience is 
one of the surest bulwarks of global security and 
peace. We may all take satisfaction in the fact 
that, with the deposit of its ratification by Guate- 
mala on April 6, the Rio Treaty is now in effect 
among all 21 Republics. 

In his State of the Union Message in January, 
President Eisenhower emphasized the importance 
of two inter-American meetings held in 1954 : the 
Tenth Inter-American Conference at Caracas and 
the Inter-American Economic Meeting at Rio de 
Janeiro. At the one, the American States closed 
ranks against international communism. At the 
other, they strengthened hemisphere economic 
ties. 

Now I would like to discuss in our meeting here 
in the Hall of the Americas some policies of my 
Government which support and reinforce the ob- 
jectives held in common, for our own countries 
separately and for the hemisphere, in our Organi- 
zation of American States. They are policies 
which are rooted deep in United States history. 

Hemispliere Security 

The first major statement of United States for- 
eign policy was a statement in behalf of hemi- 
sphere security. You know it well: President 
Monroe's message, which became a Doctrine, that 
there should be no further European colonization 
or the extension of the despotic political system 
of Europe to the American Hemisphere. Tlius 
early we recognized the profound truth that, 
when one American people is endangered, all are 
in peril. 

At Caracas last year the Tenth Conference of 



Aloy 2, 7955 



729 



American States gave the truth a further historic 
application. It there recognized that, if interna- 
tional communism should gain control of the po- 
litical institutions of any one American State, that 
would be 11 threat to the security of us all. Mutual 
refusal to compromise with communism, mutual 
awareness that extension of Communist colonial- 
ism to this hemisphere would endanger the peace 
of America, heartened the people of a sister State 
so endangered and enabled them to recover their 
lost freedom. 

Again the American States found it possible to 
take an advanced position, which other free areas 
of the world may find it possible in due course to 
follow. 

The Government and the people of the United 
States are resolved to stand fast with the other 
American nations in actively maintaining soli- 
darity against all and every danger. Conse- 
quently, we participate in specific programs to 
that end with our neighbor Kepublics electing to 
insure their own military defense and that of the 
hemisphere. 

Comparisons of Dollar Aid 

You have all heard and read, time and again, 
criticism of the United States on the score that 
we give far more dollar aid to other areas- 
Europe, the Near East, the Far East — than to our 
close neighbors and traditional friends, the sister 
Republics of this hemisphere. In fact, you have 
read and heard far more; for instance, that the 
economic ills of the other American Republics 
are due primarily to failure — or refusal — on the 
part of the United States to make loans to them 
and give them other help in building up their 
economies in anything like the measure in which 
the United States gives such help to Europe and 
the Far East. 

I have never been able to comprehend so com- 
plete a misunderstanding of the nature and the 
purpose of our foreign aid. We have had to pour 
enormous sums into Europe as loans, grants, and 
e.\penditures because Europe is geographically 
nearer to military peril. As such, it is a frontier, 
not for defense of Europe alone but for defense 
of the United States, for defense of Argentina, 
Bolivia, Brazil, Chile, Colombia, Costa Rica, 
Cuba, the Dominican Republic, Ecuador, El 
Salvador, Guatemala, Haiti, Honduras, Mexico, 



Nicaragua, Panama, Paraguay, Peru, Uruguay, 
and Venezuela. J 

Vast sums sent by the United States to Europe I 
and to the Far East have had to be used for re- 
construction of devastated regions in order to 
enable free men once again to take their part 
in the development, the maintenance, and the ex- 
tension of the free world. Similarly, the United 
States has had to make enormous expenditures 
for the military installations which insure defense 
in Europe and elsewhere against mighty forces 
whose mere existence, poised and ready, is an 
unceasing threat to us all. For the same reason 
we have had to maintain abroad detachments of 
our own armed forces in great number, at an 
expense undreamed of in less perilous epochs of 
history. 

The United States has had to make available 
great funds for grants, loans, manpower, equip- 
ment, military assistance on front after front. 
These have been emergency expenditures, whether 
for reconstruction or defense. At every moment 
and in every particular, they have been expended 
to safeguard security and peace for my country — 
and for yours. 

We cannot make any valid comparison in terms 
of dollars between that kind of assistance in re- 
building, reestablishing, and reinforcing war- 
stricken nations continually in danger of new 
armed attacks and the type of assistance which 
we extend to Latin America. Let us rather thank 
God that this fortunate hemisphere has had no 
need for stationing such multitudes of troops 
within its confines; that there is no war devasta- 
tion to be undone ; that there is no need for con- 
structing such extensive military installations as 
deterrents to a war which, if it came, would 
destroy civilization as we know it. 

Our hemisphere has been spared the terrific 
devastation of large-scale modern war. We have 
not had to undergo the harsh rigors of manmade 
devastation affecting entire peoples. Alliance and 
interest for our common good motivate inter- 
American cooperation; and in general we are not 
building together in this hemisphere against war 
so much as for peace. It is our hope that our 
economic and technical assistance in Latin Amer- 
ica will help stabilize national economies and raise 
living standards. It is our purpose to do our part 
in maintaining in ./Vmerica, which has long been 
freedom's dwelling place and the natural habitat 



730 



Departmenf of State Bulletin 



of peace and prosperity, the good partnership of 
the American peoples. 

Eximbank Loans 

There is one furtlier thing I would like to say 
with respect to the economic relations of the 
United States with Latin America. The present 
figures indicate how much importance we assign 
them. The Export-Import Bank has adopted the 
policy of making sound economic development 
loans for which funds are not available from the 
International Bank nor from private sources on 
reasonable terms. The amount of our govern- 
mental loans in this hemisphere depends prima- 
rily, therefore, on the number of sound loan appli- 
cations filed by other Republics. As a result of 
this liberalized policy, the Export-Import Bank 
loans for the Latin America area since January 
first of the present year represent 90 percent of 
its total credits ; that is to say, out of total credits 
of $184 million, Latin America has received $167 
million. To emphasize the amount of increase, it 
may be recalled that during the first 6 months of 
1954, total Export-Import Bank credits were $76 
million, of which Latin America received $39 
million. 

Our programs of technical cooperation have 
always seemed to me one of the most praiseworthy 
aspects of inter-American relationships. They 
bring improved conditions of health, of education, 
of utilizing the land. They make the hemisphere 
a better environment for us all, and they enlarge 
the horizons of opportunity for our children and 
our children's children. 

Increasing the hemisphere's economic strength 
is an essential factor in inter- American solidarity. 
Economically, the national approach is basic 
and is preliminary to international cooperation 
whether bilateral or multilateral. Recognizing 
and acting upon the common need, inter-Ameri- 
can programs of technical assistance have also 
been trailblazers for other peoples of the world. 
They serve as seedbed and experimental stations 
for trans- Atlantic and trans-Pacific programs of 
my own Govermnent's Foreign Operations Ad- 
ministration, as well as for international coopera- 
tion in this important field. Bilateral hemispheric 
programs of technical assistance, one nation with 
another, and the multilateral programs of the 
Inter- American Economic and Social Council and 
the United Nations promote both the security and 



the peaceful development of our peoples, contrib- 
uting as they do to democratic progress by improv- 
ing our national economies and raising our 
standards of living. 

The final declaration of the Inter-Aiuerican 
Economic Conference at Rio stated the agreement 
of the American nations on their economic objec- 
tives as follows : 

These may be summarized as a determination to speed 
up the progress of each and every one of them within the 
framework of freedom and justice, through substantial 
intensification of our inter-American economic, financial, 
and technical cooperation. 

Importance of Self-Reliance 

At Rio, the United States delegation was forth- 
right in presenting our approach to economic prob- 
lems confronting the American Republics. We 
hold that each one of the American peoples has 
it within his power to maintain a strong and self- 
reliant economy. It is our purpose, as steadfast 
partner for the conmion objective of better living 
standards throughout the hemisphere, to cooperate 
toward achieving that strength, without loss of 
awai'eness on the part of any of us, that apparent 
strength is illusory unless there be also self- 
reliance. 

In attaining our mutual objectives, we believe, 
for our own country as for each of yours, that 
private enterprise rather than government will 
take the initiative in pioneering and developing 
industrial fields. That has traditionally been the 
history of industrial development in America. 
President Eisenhower in his foreign economic pol- 
icy message to Congress expressed clearly the 
attitude of the United States. He said : 

The Nation's enlightened self-interest . . . require[s] 
a foreign economic program that will stimulate economic 
growth in the free world through enlarging opportunities 
for the fuller operation of the forces of free enterprise 
and competitive markets. 

Through technical cooperation and development 
loans we hope to help the other i\jnerican Repub- 
lics diversify their economies and eventually to 
help lessen dependence on only a few commodities. 

There is widespread recognition in my country 
of the preeminent importance of trade in the econ- 
omies of the neighboring Republics. There is 
corresponding recognition of the great importance 
to our own economy of the Latin American export 
market for United States products. We know 



May 2, 7955 



731 



that this market is made possible on a large scale 
only by United States purchases from Latin 
America. 

The United States is prepared to consider on 
their merits proposals made on Latin American 
initiative that look toward regional trading ar- 
rangements, provided these meet certain criteria, 
especially provision for the maintenance of truly 
competitive conditions within any trading area 
that might bo established. 

I believe that just as a national economy must 
be viewed as a whole, not as a series of unrelated 
entities, so must we view inter- American economic 
relations. That is the logical and the practical 
viewpoint. The Organization of American States 
is taking this overall view and, through its agen- 
cies and specialized organizations, is making a 
concerted approach to improve the conditions and 
opportunities of life for the peoples of the hemi- 
sphere. The United States is establishing partner- 
ship with its neighbors in these enterprises, with 
full conviction that improvement of the American 
economy as a wliole benefits our own national 
economy. 

The cooperation characteristic of tlie inter- 
American system avoids on the one hand the snares 
and delusions of alien domination and on the other 
the pitfalls of narrow nationalism. The Organi- 
zation of American States is also conscious that 
often tlie welfare of the many is the most certain 
good for the one. We are all aware of, all act in 
accordance with, what my distinguished predeces- 
sor, the late Charles Evans Hughes, termed "the 
inescapable relations created by pro})inquity . . . 
the privileges and obligations of neighborhood." 

Tlie inter-American system contributes to 
human development and progress our mutual 
guaranties of assistance which insure and preserve 
security. It contributes our mutual endeavors to 
maintain peace as the natural climate of tlie West- 
ern Hemisphere and our mutual concern that the 
American family of nations reap tlie greatest pos- 
sible harvest from tlie seed sown in cooperation 
and nurtured in good will. The United States of 
America is proud to be a member of this associa- 



tion of free and independent nations who hold 
steadfast to their great design of making peace a 
reality and freedom secure. 



Letters of Credence 

Cuba 

The newly appointed Ambassador of Cuba, 
Miguel Angel de la Campa y Caraveda, presented 
his credentials to the President on April 21. For 
the text of the Ambassador's remarks and the text 
of the President's reply, see Department of State 
press release 220. 



Consultation at Taipei Under 
Mutual Defense Treaty 

The Department of State amiounced on April 
20 (press release 217) that, in view of the tense 
situation which continues in the Foraiosa area. 
Assistant Secretary of State Walter S. Eobeiison 
and the Chairman of the Joint Chiefs of Staff, Ad- 
miral Radford, were that day proceeding to Taipei 
for a further consultation under the Mutual De- 
fense Treaty between the United States and the 
Republic of China. They planned to arrive at 
Taipei on April 24. 

Article 4 of the treaty provides that the treaty 
parties through their Foreign Ministers or their 
deputies will consult together from tune to time 
regarding the implementation of this treaty. The 
first such consultation was held on March 3, when 
Secretary Dulles and the Chief of Naval Opera- 
tions, Admiral Carney, and the Commander in 
Chief Pacific, Admiral Stump, conferred at Taipei 
with the officials of the Republic of China.' It 
is expected that periodic conferences will be held 
under the treaty as long as the Chinese Commu- 
nists indicate b}' deeds and words their purpose 
to take Formosa by force. 



' For a statement by Secretary Dulles to the press at 
Taipei on Mar. 3, see Buixetin of Mar. 14, 1955, p. 420. 



732 



Department of State Bulletin 



Exchange of Views Concerning Austrian State Treaty 



The United States on April 22 replied to a 
Soviet fTOfosal of April 19 that the Foreign Min- 
isters of the United States, United Kingdom, 
France, and the U.S.S.R. meet with Austrian 
representatives to discuss the conclusion of an. 
Austrian state treaty. Following are tlie texts of 
the U.S. and Soviet notes, together with a state- 
ment issued hy the Department of State on April 
19, an Austrian-Soviet communique issued, at Mos- 
cow on April 15, and a statement handed to U.S. 
Amhassador Charles E. Bohlen Tyy Soviet Foreign 
Minister Vyacheslav M. Molotov on April 9. 
For a report to the U.N. General Assembly by the 
United States, the United Kingdom, and France 
on the results of efforts made since 1952 to reach 
agreement on tenns of an Austrian state treaty, 
tsee Bulletin of December 13, 195Ii., p. 907. 



U. S. NOTE TO U. S. S. R., APRIL 22 > 

Press release 224 dated April 22 

The Government of the United States, in con- 
sultation with the British and French Govern- 
ments, has considered the Soviet Government's 
note of April 19 proposing a conference of the 
Ministers of Foreign Affairs of the U.K., the 
Soviet Union, the U.S. and France, with Austrian 
representatives participating, in order to discuss 
the question of conchiding a State Treaty for the 
reestablishment of an independent democratic 
Austria and in order to sign that Treaty. 

The Government of the United States welcomes 
the Soviet Government's view that the possibility 
now exists of concluding the Austrian State 
Treaty. It would be pleased to participate at the 
earliest possible moment in a meeting of the For- 



' Delivered by the United States Embassy at JIoscow 
to the Soviet Foreign Ministry. Similar notes were 
delivered by the British and French Embassies. 



eign Ministers of the four powers together with 
the representatives of Austria in order to sign the 
Treaty. 

From the information it has received regarding 
the exchanges between the Austrian and Soviet 
Ministers in Moscow it is clear that some prepara- 
tory work still remains to be done. Recalling the 
tripartite declaration of April 5,- it suggests that 
the Ambassadors of the four powers in Vienna 
should meet at a very early date, with the partici- 
pation of Austrian representatives, in order to 
examine the results of the exchanges in Moscow 
and to reach the necessary agreements for the 
early signature of the State Treaty by the For- 
eign Ministers. It would therefore propose that 
the Ambassadors together with Austrian repre- 
sentatives should meet in Vienna on May 2.' 

As soon as the necessary preparations have been 
completed, the earliest practicable date should 
then be set for the Foreign Ministers to meet and 
sign the treaty. 



U. S. STATEMENT OF APRIL 19 

Press release 216 dated April 19 

The United States Govermnent, together with 
the Governments of the United Kingdom and 
France, has for 9 years consistently pressed the 

= Bulletin of April 18, 1955, p. 647. 

' The Soviet Union on April 26 sent notes to the United 
States, France, and the United Kingdom agreeing to an 
ambassadors' meeting at Vienna on May 2. The notes 
stated that "given the existence of a draft state treaty for 
the restoration of an indeitendent and democratic Austria 
agreed by the parties, as well as a community of views, 
ascertained as a result of an exchange of opinions as 
regards Austria as an independent and peace-loving state, 
the ta.'ik of the conference of ambassadors would consist 
of in.suring in the near future the convening of a confer- 
ence of Foreign Ministers of the Four Powers with the 
participation of Austria for considering and signing a 
state treaty with Austria." 



Moy 2, 7955 



733 



Soviet Government for a settlement of the Aus- 
trian question as essential to the relaxation of in- 
ternational tensions in Europe. The United 
States is glad to learn that the Soviet Government 
appears now to seek urgently the conclusion of a 
state treaty which will restore to Austria her 
rightful status of sovereign independence. 

In the liglit of the recent exchange of views in 
Moscow between representatives of the Austrian 
and Soviet Governments, the United States Gov- 
ernment, with its British and French partners, is 
already exploring the most expeditious methods 
of reaching a speedy conclusion of the state treaty 
for Austria. 

It will be recalled that the Tripartite Declara- 
tion on Austria made by the Governments of 
France, the United Kingdom, and the United 
States on April 5, 1955, stated that the three Gov- 
ernments considered that if the Soviet Govern- 
ment should offer proposals holding clear promise 
of the restoration of freedom and independence to 
Austria, these could appropriately be discussed by 
the four Ambassadors in Vienna with the partici- 
pation of the Austrian Government. 

The suggestion of the Soviet Government for a 
meeting of the Foreign Ministers of the Four 
Powers, witii Austrian participation, at Vienna in 
the near future is receiving prompt and sympa- 
thetic consideration. 



SOVIET NOTE OF APRIL 19< 

I Unofficial translation] 

The Soviet Governinent considers it necessary to call to 
the attention of the United States Government the follow- 
ing: 

Negotiations between the Soviet Government and the 
delegation of the Austrian Republic headed by tlie Fed- 
eral Chancellor of Austria, Julius liaab, were held in 
Moscow from April 12 to April 15. 

As a result of the ex('liiin;;(> of opinions, it became clear 
that at the present the possibility exists to conclude the 
settlement of the Austrian ipiestion mid to conclude a 
state treaty with Austria. 

This will make it possible to fully restore the iiidei)end- 
ence of a democratic Austrian state, which will lie a sub- 
stantial contribution to the consolidation of ix-ace in 
Europe. 

The Soviet tioverument expresses the hojie that the 
Government of the Uiiittnl States will help, for it.s part, 
to achieve the necessary understanding between tiie Gov- 



ernments of the Four Powers and the Government of 
Austria regarding the conclusion of a state treaty with 
Austria. 

The Soviet Government considers it desirable that a 
conference of the Foreign Ministers of the United States. 
France, Great Britain, and the Soviet Union be held in the 
nearest future with the participation of representatives 
of Austria to con.sider the question of concluding a state 
treaty for the restoration of an independent, democratic 
Austria and to sign this treaty. 

It is proposed that Vienna be the place for the holding 
of this conference. 

The Soviet Government would appreciate receiving a 
rapid reply to this proposal from the Government of the 
United States. 



AUSTRIAN-SOVIET COMMUNIQUE OF APRIL 15 

[Unofficial translation] 

From April 12, 1955, imtil April 15, 1955, discussions 
were held in Moscow between an Austrian Government 
delegation headed by Chancellor Julius Raab and Vice 
Chancellor Dr. Adolf Schaerf and a Soviet delegation 
headed by the Deputy Chairman of the Council of Minis- 
ters of the Soviet Union and Minister for Foreijai Affairs. 
V. M. Molotov, and the Deputy Chairman of the Council 
of Ministers, A. I. Mikoyan, which were carried out in a 
friendly spirit. 

As a result of discussions by both sides, the State Gov- 
ernment of the Soviet Union as well as the Government 
of the Republic of Austria considers as desirable the earli- 
est conclusion of a state treaty on the establishment of 
an indeiiendent and democratic Austria which should serve 
the national interests of peace in Europe. 

The Austrian delegation gave assurances that the Aus- 
trian Republic, in the spirit of the declaration made at 
the Berlin Conference in 1954,° intends not to join any 
military alliances or permit military bases on her terri- 
tory and will pursue a policy of independence in regard 
to all states which should insure the observance of this 
declaration. 

The Soviet side expressed its agreement that the occu- 
pation forces of the Four Powers be withdrawn from 
Austria upon the entering into force of the state treaty 
and in any case not later than December 31, 1955. 

Taking into consideration the declaration of the United 
States, Britain, and France made public on April 5 of 
this year to the effect that they are striving to achieve 
the earliest conclusion of an Austrian state treaty, the 
Soviet Union and Austria express the hope that at the 
present time there are favorable opportunities for con- 
clusion of a treaty by means of appropriate agreement 
among the Four Powers and Austria. 

The Soviet Government agree<l in the third of its state- 
ments at the conference at Berlin in 1954 to accept the 



* Similar notes were sent to the British and French 
Governments. 



" I. e. the Soviet proiwsal of Feb. 12, 19,54 ; for text, see 
Forciiin Ministers Mviting. Berlin Diseussions, Depart- 
ment of State publication 5399. p. 233. 



734 



Department of Sfafe Bulletin 



equivalent of $150,000,000 provided for by article 35 of 
the state treaty fully in the delivery of Austrian goods. 

The Soviet Government declared its readiness, in addi- 
tion, for the early foreseen transfer of former German 
property in the Soviet Zone of occupied Austria, to trans- 
fer to Austria immediately after conclusion of the state 
treaty, for proper recompense, the property of the Danube 
Shipping Company (ASSG), including the shipyards and 
Korneuburg dock and all vessels and port installatiou.s. 

The Soviet Government agreed further to cede to Aus- 
tria the oil fields and refineries, including the company 
for trade in oil products, OROP, defined as belonging to 
Austria in article 35 of the state treaty, in exchange for 
the delivery of crude oil in amounts agreed to by the 
parties. 

IMoreover, agreement was reached to enter into negotia- 
tions in the near future aimed at the normalization of 
trade relations between Austria and the Soviet Union. 

The Soviet delegation informed the Austrian delegation 
that the presidium of the Supreme Soviet of the U. S. S. R. 
had expressed its consent to consider favorably the re- 
quest of the Austrian Federal President, Dr. Koerner, 
about the return of the Austrians to their motherland 
who are serving terms at the decision of the Soviet court 
organ. 

After the withdrawal of the Soviet occupation troops 
from Austria, not a single military prisoner or detained 
civilian person of Austrian citizenship will remain on the 
territory of the Soviet Union. 



MR. MOLOTOV'S STATEMENT OF APRIL 9 

Already at the Berlin Four Power Conference of For- 
eisn Ministers in early 1954 the Soviet Government in- 
introduced proposals concerning the most rapid resolution 
of the Austrian question and taking measures with the 
object of preventing a new Anschluss of Austria and also 
preventing the establishment of foreign military bases on 
Austrian territory and inclusion of Austria in any coali- 
tion or military alliances directed against any power 
which took part with its armed forces in the war against 
Germany and in the liberation of Austria. 

However, at the Berlin Conference, for reasons not 
dependent on the Soviet Union, agreement on the con- 
clu.sion of a state treaty with Austria was not reached, 
and the Austrian question remained unresolved. In con- 
nection with this, a proposal was introduced at that time 
by the delegation of the Soviet Union concerning the ne- 
cessity of continuing efforts directed toward reaching 
agreement concerning the state treaty with Austria.' 

In August 1954 the Soviet Government proposed calling 
in Vienna a conference of Ambassadors of the U.S.S.R., 
U.S.A., England, and France, with the participation of a 
representative of Austria, in order to examine the re- 



' Ibid., p. 241. 



maiuing unsettled questions concerning the draft stiite 
treaty with Austria and other questions connected with 
the conclusion of this treaty. However, such a conference 
unfortunately was not called. 

Attaching great importance to the resolution of the 
Austrian question and the question of the complete re- 
e.stablishment of an independent democratic Austria, in 
conformity with the interests of maintaining and strength- 
ening i)eace in Europe, and considering any further delay 
in the matter of concluding a state treaty with Austria 
unjustified, the Soviet Government submitted, as is 
known, on February 8 of this year its new proposals on 
the Austria question. 

These proposals have as their purpose to put an end 
to the present abnormal situation in which the question 
of a state treaty with Austria has not yet been resolved 
and Austria, 10 years after its liberation from Hitlerite 
rule, still continues to remain under the control of the 
occupation organs of the Four Powers. It is pertinent to 
recall that at the Berlin Conference in February 1954 the 
Soviet Government propcsed to return not later than dur- 
ing 19.55 to the examination of the question of dates of 
the withdrawal of forces of the Four Powers from the 
territory of Au.stria. 

At the end of February and in March of this year there 
took place at the initiative of the Soviet Government a 
preliminary exchange of views between the Governments 
of the Soviet Union and Austria on the Soviet Govern- 
ment's proposals of February 8 mentioned above. At this 
time it became clear that at the present time there are 
possibilities of assisting the acceleration of the settlement 
of the Austrian question by means of concluding an appro- 
priate agreement between the Four Powers and Austria. 

Inasmuch as it has also become clear that the estab- 
lishment of personal contact between leading figures of 
the Soviet Union and Austria may facilitate this im- 
portant matter, it was agreed that for the continuation 
of the discussion of questions already touched on, the 
Governmental delegation of Austria, headed by the Chan- 
cellor of Austria, Mr. Raab, will arrive at Moscow on 
April 11. 

The Soviet Government believes that an exchange of 
opinions in Moscow with representatives of the Govern- 
ment of Austria will help to move forward the matter of 
settling the Austrian question. It takes into account in 
this regard that during the time which has elapsed since 
the Berlin Conference, the leaders of the Austrian Gov- 
ernment have already had appropriate meetings and an 
exchange of views with the leading figures of the U.S.A., 
England, and France. 

The Soviet Government expresses the hope that, given 
the presence of a corresponding desire on the part of all 
interested states, it will be possible in the very near 
future to reach the necessary agreement and to conclude 
a state treaty with Austria. 

The Soviet Government requests that the U.S. Govern- 
ment be informed of the foregoing. 



May 2, 1955 



735 



Proposal for Four-Power Talks 
on Road Tolls in East Germany 

EICOG press release dated April IQ 

FoUowing is the text of a further letter from 
U.S. High Convmissioner James B. Conant to 
Soviet Uigh Com/missioner G. M. Pushkin con- 
cei'iiing increased road tolls in the East Zone of 
Germany^ which was delivered to Soviet Head- 
quarters in Berlin on April 15. Similar letters 
were sent by the British and French High 
Convmissioners. 

In my letter of March 31 ' I drew your attention 
to the proposed introduction of drastic increases 
in tlie fees ])ayable by vehicles not registered in 
the Soviet Zone for the use of roads in the Soviet 
Zone. I have received no reply to this letter and, 
despite my request that you should take the neces- 
sary steps to have the proposed measures with- 
drawn, the new fees were imposed with effect from 
April 1. 

As I pointed out in my letter to you of March 31, 
these increases are so exorbitant that they cannot 
be justified on economic grounds. It is estimated 
by competent experts that the revenue collected 
from the road tax in effect prior to April 1, which 
in 1954 is understood to have amounted to between 
DM 4,300,000 and DM 5,000,000, was sufficient to 
provide for the maintenance of highways in the 
Soviet Zone used by West German traffic. If, 
however, in view of the economic ilifliculties of the 
Soviet Zone, the East German authorities liave 
been unable to provide the necessary funds for 
road maintenance without increasing their reve- 
nues from this tax, this should be a matter for 
consultation between the experts concerned. 
Nevertheless, although the West German experts 
in the Treuhandstelle have expressed the wish to 
discuss the matter on two occasions since the new 
fees were introduced, on April 7 and again on 
April 14, the East German repi-esentatives have 
refused to do so. This refusal confirms the view 
expressed in my letter of March 31 that the in- 
creases can only be regarded as politically inspired 
and intended to impede the free movement of 
persons and goods between the Federal Republic 
and Berlin and between the Federal ReiJublic and 
the Soviet Zone. 

At th(> sixth session of the Council of Foreign 



Ministers at Paris in June, 1949, the Soviet Gov- 
ernment gave certain undertakings which were set 
out in a communique issued at the close of the 
conference.- These undertakings included the 
following statement : 

In order to improve and supplement this and other 
arrangements and agreements as regards the movement 
of persons and goods and communications between the 
eastern and western zones and between the zones and 
Berlin and also in regard to transit, the Occupation 
Authorities, each in his own zone, will have an obligation 
to take the measures necessary to ensure the normal 
functioning and utilization of rail, water and road trans- 
jiort for such movement of persons and goods and such 
communications by post, telephone and telegraph. 

The arbitrary action of the East German au- 
thorities in imposing these exorbitant increases, 
on which there was no prior consultation with the 
West German experts, is clearly inconsistent with 
the Soviet Government's undertakings, since it 
interferes with the "normal functioning" of road 
transport in the Soviet Zone. 

I therefore consider that the Soviet authorities 
are responsible for ensuring that these increases 
are withdrawn without delay. Since a contiima- 
tion of the present situation can only make for 
difficulties in interzonal trade, affect the welfare 
of Berlin and lead to an increase in tension within 
Germany, I propose that the foiu" High Commis- 
sioners shoiUd meet in Berlin as soon as possible 
to discuss the settlement of this problem. 



U.S. Rejects Demand for Return 
of Czechoslovak Border Guard 

The United States Enibassy at Prague on April 
9 delivered a note to the Ministry of Foreign 
Affairs of Czechoslovakia in reply to the Minis- 
t.rxfs notes of April 2 and April 7 requesting that 
Czechoslovak border guard Jam, Fojtik, who 
crossed the border into Germany on April £, 1955, , 
be retuj'Tied, allegedly for questioning as to re- 
sponsibility for the fatal shooting of a second 
guard in the course of his escape. 

FoUowing are the substantive portions of the 
l/.S. reply and of the April 2 Czechoslovak note^ 



' Bui-urriN of Apr. 18, 1955, p. 648. 
736 



' Ibid., July 4, 1949, p. 857. 

•'' Complimentary oi)ening and closing passages omitted. 

Departmenf of State Bulletin 



'ind an excerpt from, the April 7 Czechoslovak 

note. 

U.S. Note of April 9 

Press release 198 dated April 11 

The Embassy has been instructed to inform the 
Ministry that as a result of an investigation, the 
T'nited States authorities have ascertained that 
the border guard Jan Fojtik escaped from 
C'zochoslovakia for political reasons. He has re- 
quested and been granted political asylum. In 
the circumstances tlie Ministry's demand that he 
be returned represents a proposal that the United 
States Government should deny the right of 
political asylum and violate its traditional prac- 
tice of refusing to return to a foreign jurisdiction 
persons who have left it for political reasons. 
The United States cannot accept this proposal 
and the Ministiy's demand for Fojtik's return is 
accordingly rejected. 

Under a system of political oppression denying 
its citizens the right to choose freedom, violence 
and tragedy are bound to occur. The Ministry 
of Foreign Affairs should, therefore, be aware 
that the death of either an escapee or a border 
guard is a tragic event for which only the Czecho- 
slovakian Govermnent is responsible. 

Czechoslovak Note of April 2 

On April 2 at 8 : 30 a.m., a member of a Czechoslovak 
border patrol, Private Pavel Juhas, was killed by a shot 
throusrh the head near the border between the Czechoslo- 
vak Republic and Western Germany in the area of 
Rozvadov. 

An investigation carried out by Czechoslovak border 
authorities in cooperation with West German Grene- 
poUxei has shown that at the time of the shot an auto- 
mobile of the U.S. Armed Forces passed near the place 
of the murder. The second member of the Czechoslovak 
border patrol, .Ian Fojtik, who had been patrolling that 
sector together with the murdered Pavel Juhas, was sub- 
sequently seen riding with American soldiers in said mili- 
tary car, which drove away toward Weiden. In farther 
negotiations. West German GrenzpoUzei confirmed that 
Fojtik was in the hands of American military authorities 
in Western Germany. 

Czechoslovak border authorities asked immediately for 
the return of .Ian Fojtik. The return of Fojtik was re- 
fused with the comment that the request for his surrender 
should be effected through diplomatic channels. The in- 
vestigation carried out until now arouses the suspicion 
that the murder was committed by Jan Fojtik. 

The Ministry requests that Jan Fojtik be immediately 
returned to Czechoslovakia so that he can be questioned 



without delay, and should the existing suspicion be con- 
flrmed, penal proceedings be initiated. 

Czechoslovak Note of April 7 



The position of the U.S. authorities in West Germany 
necessarily places the circumstances in which the Juhas 
murder occurred in a new light. Should the U.S. authori- 
ties maintain their negative attitude to the request for 
the return of Fojtik to Czechoslovakia, the only explana- 
tion tor their position would be that the U.S. military 
authorities, whose car was at the time of the murder near 
the place of the crime, have special reasons for preventing, 
by holding Fojtik, the clarification of this case and the 
discovery of the perpetrator of this brutal murder. 

The Minister of Foreign Affairs demands again and with 
great emphasis the immediate return of Czechoslovak citi- 
zen Fojtik to Czechoslovakia. 



U.S. Requests Information on 
Polish Underground Leaders 

The Department of State announced on April 
21 {press release 221) that the Erribassies of the 
United States at Moscoio and Warsaw had that 
day delivered notes to the Foreign Ministries of 
the U.S.S.R. and Poland concerning the fate of 
the Polish underground leaders arrested by Soviet 
authorities on March 28, 191^5. The note to the 
Soviet Ministry of Foreign Affairs stated: 

The Embassy refers to representations which 
were made in 1945 by a United States official with 
Premier Stalin at Moscow and by the then Sec- 
retary of State with Foreign Minister Molotov at 
the San Francisco Conference on the United Na- 
tions Charter with respect to the arrest of 16 
leaders of the Polish Underground by Soviet 
authorities on March 28, 1945.^ 

It is recalled that the Underground had waged 
a bitter struggle on the side of the Allies and in 
the defense of Poland against foreign aggression 
and occupation in the Second World War. Tlie 
arrest of these men, members of various Polish 
political parties and groups, aroused great con- 
cern throughout the world. It may also be noted 
that the 16 Polish leaders were arrested at a time 
when the Western Allies were making an effort, 



'For a statement on the Stettinius-Molotov talks see 
Bulletin of May 6, 1945, p. 850. 



May 2, 1955 



737 



in accordance with international discussions, to 
have a new Polish Government formed on a demo- 
cratic basis by the inclusion of Polish leaders from 
abroad and from the Underground in Poland. In 
virtue of this interest the United States made its 
inquiries to the Soviet Government in 1945 with 
a view to obtaining information regarding the 
arrested men. The United States Government 
now wishes to raise this matter again. 

Certain developments subsequent to this arrest 
are well-known. The men were transported from 
Poland to the Soviet Union and were tried by a 
Soviet court in June 1945. Most of them were 
imprisoned in the Soviet Union. Some were re- 
arrested in Poland and sentenced to impri.sonment 
in Polish jails. The longest Soviet sentence was 
that of ten years, imposed on Major General 
Okulicki. 

The United States Government notes that if 
General Okulicki's sentence began on the date of 
his arrest he has now presumably completed his 
term of imprisonment. Since all of the other 
Soviet sentences were of lesser length it is assumed 
that none of the sixteen men originally arrested 
are now held in Soviet jails. 

The United States Government also wishes to 
point out that despite continued interest in the 
fate of these Polish leaders, nothing is known of 
the whereabouts of several of them and there is 
even some doubt as to how many are still alive. 

So far as the United States Government is 
aware tlie following three members of the group, 
in addition to General Okulicki, have not yet re- 
turned to Poland: Jan Stanislaw Jankowski, Sta- 
nislaw Jasiukowicz and Antoni Pajdak. Dating 
from the time of their original arrest, Jankowski's 
sentence would have ended March 28, 1953, and 
that of Jasiukowicz, and possibly of Pajdak, on 
March 28, 1950. 

Under these circumstances the United States 
Government wishes to request that the Soviet 
Government provide information as to which of 
these sixteen men are still in the Soviet Union, and 
under what circumstances. Information is also 
requested regarding any of the men who may liuve 
died in the U. S. S. K. 

A similar note to the Polish Foreign Ministry 
contained the following additional paragraph: 



It is also understood that Stanislaw Michalow- 
ski and Kazimierz Kobylanski were re-arrested 
following their return to Poland from the Soviet 
Union. Their ultimate fate, as well as that of 
Adam Bien, Alexander Zwierzynski and Jozef 
Stemler-Dabski is unknown. 



Chinese Communist Intentions 
in Formosa Area 

Press release 226 dated April 23 

The Department of State has received jjress 
reports concerning the statement of Chou En-lai 
at the Bandung conference. The United States 
always welcomes any efforts, if sincere, to bring 
peace to the world. In the Formosa region we 
have an ally in the free Kepublic of China, and of 
course the United States would insist on free 
China participating as an equal in any discussions 
concerning the area. 

If Communist China is sincere, there are a num- 
ber of obvious steps it could take to clear tlie air 
considerably and give evidence before the world 
of its good intentions. One of these would be to 
place in effect in the area an immediate cease-fire. 
It could also immediately release the American 
airmen and others whom it unjustly holds. 
Another could be the acceptance of the outstand- 
ing invitation by the Security Council of the 
United Nations to participate in discussions to 
end hostilities in the Formosa region. 



General Collins Returns 
for Consultation 

Tress release 214 dated April 18 

Gen. J. Lawton Collins, special representative 
of the United States in Viet-Nam, has been called 
temporarily to AVashington for consultation in 
preparation for congressional hearings on fiscal 
3'ear 1950 appropriations under the Mutual Se- 
curity Act. The appropriation for Viet-Nam is 
one of the most significant items under this act 
and will require the presence of General Collins 
in Washington for a brief period. 



738 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings 



Adjourned During April 1955 

IcAO Council: 24th Session 

IcA<i Air Navigation Commission: 18th Session 

[(■All Air Transport Committee: 24th Session 

n. X. Ecosoc Commission on Status of Women: 9th Session . . . 

('m;s<'0 Executive Board: 41st Meeting 

[ti International Radio Consultative Committee (Ccir): Study 

(! roups I and XI. 
LJ. N. Economic and Social Council: 19th Session (1st Part) .... 
U. N. Economic Commission for Asia and the Far East: 11th Session. 
U. N. Special Committee To Study the Question of Judicial Review of 

Judgments of the Administrative Tribunal. 
U. N. Ecosoc Commission on Human Rights: 11th Session .... 

Fad Asia-Pacific Forestry Commission: 3d Session 

I( Ai« Subcommittee on Draft Protocol To Amend the Warsaw Con- 

vrntion. 
(<Ao Legal Committee: Subcommittee on Negotiability of the Air 

Waybill, 
[ntcriiational Union of Biological Sciences: 12th General Assembly . 

Fao Desert Locust Control Committee; 1st Session 

Wmo Executive Committee: 6th Session 

U. N. Commission on International Commodity Trade: 2d Session . 

53d International Milan Samples Fair 

5th International Congress of Onomastic Sciences 

Swiss Industries Fair 

Fao International Poplar Commission: 8th Session 



Montreal Jan. 2.5-Apr. 2 

Montreal Jan. 25-Apr. 6 

Montreal Jan. 26- Apr. 1 

New York Mar. 14- Apr. 1 

Paris Mar. 21-Apr. 7 

Brussels Mar. 22-Apr. 6 

New York Mar. 29-Apr. 7 

Tokyo Mar. 28-Apr. 7 

New York Apr. 4-22 

Geneva Apr. 5-30 

Tokyo Apr. 9-21 

Madrid Apr. 12-22 

Madrid Apr. 12-22 

Rome Apr. 12-15 

Rome Apr. 12-16 

Geneva Apr. 12-13 

New York Apr. 12-22 

Milan Apr. 12-29 

Salamanca (Spain) .... Apr. 12-15 

Basel Apr. 16-26 

Madrid Apr. 25-28 



n Session as of April 30, 1955 

World Meteorological Organization: 2d Congress 

U. N. Trusteeship Council, Committee on Information from Non- 
Self-Governing Territories: 6th Session. 

U. N. Technical Conference on the Conservation of the Living Re- 
sources of the Sea. 

U. N. Ecosoc Commission on Narcotic Drugs: 10th Session .... 

IcEM Executive Committee: 2d Session 

7th Liege International Trade Fair 

Itu Administrative Council: 10th Session 

Lyon International Fair 

IcAO Meeting of Medical Experts on Hearing and Visual Require- 
ments for Aviation Personnel Licenses. 

Committee of Experts To Prepare for International Conference for 
Revision of the International Convention for the Protection of 
Industrial Property. 

Ilo Petroleum Committee: 5th Session 

Paso Executive Committee: 25th Meeting 

8th International Film Festival 

IcEM Council: 2d Session 



Geneva Apr. 14- 

New York Apr. 15- 

Rome Apr. 18- 

New York Apr. 18- 

Geneva., Apr. 21- 

Liege (Belgium) Apr. 23- 

Geneva Apr. 23- 

Lyon Apr. 24- 

Paris Apr. 25- 

Bern Apr. 25- 

Caracas Apr. 25- 

M6xieo, D. F Apr. 25- 

Cannes Apr. 25- 

Geneva Apr. 27- 



Scheduled May 1-July 31, 1955 

British Industries Fair London May 2- 

U. N. Ecosoc Social Commission: 10th Session New York May 2- 

Wmo Executive Committee: 7th Session Geneva May 3- 



1 Prepared in the Office of International Conferences, Apr. 22, 1955. Asterisks indicate tentative dates and places. 
Following is a list of abbreviations: Icao, International Civil Aviation Organization; U. N., United Nations; Ecosoc, 
Economic and Social Council; Unesco, United Nations Educational, Scientific and Cultural Organization; Itd, Inter- 
national Telecommunication Union; Ccir, International Radio Consultative Committee (Comit6 consultatif Internationale 
des radio communications); Fao, Food and Agriculture Organization; Wmo, World Meteorological Organization; Icem, 
Intergovernmental Committee for European Migration; Ilo, International Labor Organization; Paso, Pan American 
Sanitary Organization; EcE, Economic Commission for Europe; Nato, North Atlantic Treaty Organization; Ecla, 
Economic Commission for Latin America; Iasi, Inter-American Statistical Institute; Ecafe, Economic Commission for 
Asia and the Far Ea.st. 



May 2, 1955 



739 



Calendar of Meetings — Continued 

Scheduled May 1-July 31, 1955^Conlinued 

International Oil Exposition Houston May 3- 

U. N. EcE Steel Committee Geneva May 3- 

1st International Photography and Motion Picture Biennial Exposi- Paris May 4- 

tion. 

South Pacific Commission: Vocational Training Conference .... Suva (Fiji) May 4— 

Japan International Trade Fair Tokj'o May 5- 

Nato: Ministerial Meeting of the Council Paris May 9- 

U. N. EcLA Committee of the Whole: 4th Meeting Santiago May 9- 

U. N. Refugee Fund (Unrep) Executive Committee: 1st Session . . Geneva May 9- 

World Health Organization: 8th Assembly M^.xico, D. F May 10- 

West Indian Conference: 6th Session . ." San Juan (Puerto Rico) . . May 10- 

Cariljhean Commission: 20th Meeting San Juan (Puerto Rico) . . May 13- 

Paris International Fair Paris May 14- 

U. N. Economic and Social Council: Resumed 19th Session .... New York May 16- 

Advisory Committee on the International Conference on the Peaceful Paris May 23- 

Uses of Atomic Energy: 2d Session. 

Fag Committee on Commodity Problems: 25th Session Rome May 23- 

Ilo Governing Body: 129th Session Geneva May 23- 

10th International Mediterranean Fair Palermo May 24^ 

International Sports Exhibition Turin May 24- 

Intcr-American Commission of Women: 10th Assembly San Juan (Puerto Rico) . . May 29- 

IcAO Assembly: 9th Session Montreal May 31- 

5th International Congress on Large Dams Paris May 31- 

Who F^xecutivo Board: 16th Session Mfexico, D. F June 1- 

Ilo Anniial Conference: 38th Session Geneva June 1- 

International Samples Fair Barcelona June 1- 

Iasi Committee on Statistical Education: 1st Session Quitandinha (Brazil) . . . June 3- 

Iasi Committee on Improvement of National Statistics: 3d Session . . Quitandinha (Brazil) . . . June 3- 

International Commission for Northwest Atlantic Fisheries: 5th An- Ottawa June 6- 

nual Meeting. 

Fao Council: 21st Session Rome June (5- 

4th World Petroleum Congress Rome June 6- 

U.N. EcAFE Iron and Steel Subcommittee: 6th Session Bangkok June 6- 

Agriculture Show Denbigh (Jamaica) . . . June 8- 

U.N. Trusteeship Coimcil: 16th Session New York June 8- 

3d Inter-American Statistical Conference Quitandinha (Brazil) . . . June 9- 

Inter-American Statistical Institute: 3d General Assembly Quitandinha (Brazil) . . . June 9- 

21st International Aeronautical Exhibition Paris June 10- 

International Exhibition of Architecture, Industrial Design, Home Halsingborg (Sweden) . . June 10- 

F\irnishings, and Crafts. 

IcAO Airworthiness Panel of Airworthiness Division: 2d Meeting . . (Undetermined) June 14- 

U.N. 101 h Anniversary Commemorative Meeting San Francisco June 20- 

International Cotton Advi.sory Committee; 14th Plenary Meeting . . Paris June 20- 

International Statistical Institute: 29th Session Quitandinha (Brazil) . . . June 24- 

Inter-American Indian Iiistit\ite: Meeting of Governing Board . . . Mexico, D. F June- 

Inteniational Technical Conference on Lighthouses and Other Aids to The Hague June- 

• Navigation. 

International Wheat Co\incil: 17th Session London June- 

Poznan International Fail Poznan (Poland) .... July 3- 

iTr International Radio Consultative Committee (Ccir): Study Geneva July 4- 

Groiip X. 

International Youth Gymnastic Congress Rotterdam July 5- 

U.N. Economic and Social Council: 20th Session Geneva July 5- 

International Whaling Commission: 7th Meeting Moscow July 16- 

International Union of Pure and Applied Chemistry: 18th Con- Zurich July 20- 

fcrence; and 1 4th International Congress of Pure and Applied 

Chemistry. 

Pan American Institute of Geography and History (Paigh): 6th Mexico, D. F July 25- 

General Assembly. 

Paigh Commission on Cartography: 7t.h Consultation Mexico, D. F July 25- 

Paihh Commission on Geography: 4th Consultation M6xico, D. F July 25- 

Paigh Commission on History: 3d Consultation Mexico, D. F July 25- 

Third Biennial Celebration Sao Paulo July- 
American International Institute for the Protection of Childhood: Montevideo July*- 

Meeting of Directing Council. 

Consultative Committee on Rice: 10th Meeting Bangkok July- 



740 Department of State Bulletii 



Increasing International Travel 



StateiTient by Preston Hotchkis 

U.S. Eepreseniafive in the Economic and Social Council^ 



Peace — a continued eifort to develop and en- 
lance its prospects — ■ 

Prosperity — and hnproving standards of liv- 
)ig — 

These are crops which are harvested by in- 
reased international ti-avel. And these are the 
najor objectives of the United Nations as set 
'orth in the charter. Therefore the United States 
xovernment is gratified that international travel 
las been given its proper recogmtion by being 
)laced upon the agenda of tliis session of the Eco- 
loniic and Social Council. 

Travel from one country to another is not only 
m indication of peace and good will among na- 
ioiis, but it produces a chain reaction — the greater 
he volume of travel, the more people know about 
)tlier coiuitries and their peoples, the less become 
lie prejudices and the greater the prospects of 
asting peace. 

It is not too much to say that every traveler is 
( iif)tential student and teacher and emissary of 
;nii(l will. But our primary emphasis at the 
uoment is on the economic benefits of intema- 
ioiial travel rather than on the social and cultural 
benefits that are also present. 

My Government has submitted a paper (E/2688 
lated February 15, 1955)^ which sets forth the 
lariie part which travel plays in international 
trade, its potential for gi'owth, and certain con- 
^tructive measures wliich can be exerted toward 
its further encouragement. My remarks today 
will highlight some of the points covered in the 
paixn-. 

1 )uring World War II international travel was 
almost nonexistent. Since then, however, it is 



' Made in the Council at New Tork, N. Y., on Mar. 31 
(U. S./U. N. press release 2142). 
' EuiLETiN of Mar. 21, 1955, p. 491. 



showing a healthy growth, but the opportunity for 
still greater development is tremendous. 

In saying this I realize that there still remain 
some obstacles and barriers for free travel from 
one country to another. In fact, if it were not 
for the tensions that have developed in some parts 
of the world, we might not now be troubled by 
the remaining border-crossing formalities which 
harass the international traveler in many coun- 
tries, including our own; but the realities of the 
existing situation remain and must be dealt with 
in the interests of national security. 

During the past few years many unnecessary 
restrictions to travel have been removed. A num- 
ber of countries have embarked on tourist devel- 
opment programs with outstanding success. In- 
ternational travel has become one of the major 
factors in world trade. For example, the spend- 
ing by U.S. residents in foreign travel is now 
equivalent to approximately 10 percent of total 
U.S. exports. In other words, our travelers have 
provided foreign countries with sufficient dollars 
to enable them to pay for approximately one-tenth 
of their total commercial purchases from this 
country. 

Striking examples may be cited of the rapidity 
with which a substantial tourist industry can be 
built up by effective promotional efforts. 

Puerto Eico in 1948 earned approximately 
$5.6 million from 58,000 visitoi-s. This was in- 
creased by 1953 to $23 million and 110,000 visitors. 

Nassau in 1947 had about 30,000 visitors; by 
1950 the number had increased to 84,000. 

Similar success stories are provided by Canada, 
Mexico, Hawaii, Bermuda, Jamaica, and other 
popular tourist areas. 

Under its own energetic travel promotion pro- 
gram, Great Britain increased its dollar earnings 



May 2, 7955 



741 



from tourism from $56 million in 1948 to $110 
million in 1954. 

In 1949 the European Travel Commission 
launched a cooperative regional travel promotion 
campaign in the United States for Western 
Europe as a whole. These activities have helped 
to increase U.S. citizens' travel to Europe from 
183,000 in 1948 to an estimated 456,000 in 1954. 
During the same period Europe's earnings from 
tourist expenditures climbed from $128 million 
to an estimated $330 million — or $.5 billion if fares 
paid to European carriers are included. All cur- 
rent indications point to the fact that both the 
volume of U.S. visitors to Europe and the 
amounts expended there during 1955 will be con- 
siderably higher. 

United States Activities 

Recognizing the importance of international 
travel, President Eisenhower in two recent mes- 
sages to Congress cited its cultural, social, and 
economic significance and called attention to the 
substantial source of dollars which foreign travel 
by U.S. citizens pi-ovides for many foreign coun- 
tries.^ The President also instructed the appro- 
priate agencies and departments of the Govern- 
ment to consider means to facilitate international 
travel. 

Specifically what is the volume of U.S. travel 
to foreign countries? Latest estimates show that 
U.S. residents in 1954 spent $972 million for ac- 
tual expenditures in foreign countries and $183 
million in payments to foreign carriers; a total 
of $1,155 million paid to foreign countries. In 
addition $211 million was spent in payments to 
United States carriers. The grand total of $1,3GG 
million was about 7 percent more tlian that for 
1953, and it is expected that 1955 will show a 
further healthy increase. 

In the United States the travel industry is well 
organized. There are the carriers — air, steam- 
ship, railroads, buses, and all the facilities which 
transport passengers, including private automo- 
biles. A large part of the efforts of these enter- 
prises, both individually and through active asso- 
ciations, concern travel beyond the boundaries of 
the United States. There are several thousand 
travel agents engaged in the business of arranging 
trips and accommodations for their clients and 
energetically working to increase their numbers. 



There are national associations such as the Ameri- 
can Society of Travel Agents, the National Asso- 
ciation of Travel Organizations, and the American 
Automobile Association. The hotel and motel 
industry with its national trade organizations 
contributes much to this dynamic industry. 
Newspapers, magazines, and trade journals carrj 
large volumes of editorial material, advertising 
and travel news. 

International Activities 

International activities by governmental anc 
private organizations are impressive in thc.ii 
scope. In the United Nations the Transport an( 
Communications Commission has performec 
much useful work and is continuing to give atten 
tion to the problem of international travel. ^ 
recommendation by the Commission that a nev 
inquiry be made among governments as to thi 
progress that has been made in implementing thi 
recommendations of the 1947 conference of ex 
perts on border-crossing and frontier formalities 
will be before the Council in May. Favorabli 
action upon this meritorious proposal will providi 
helpful data on the continuing activities of manj 
governments to simplify procedures for tourists 
A convention on road traffic was prepared ii 
1949," simplifying and standardizing formal itie; 
for international motoring, and has been ratifiec 
to date by 18 nations. Further ratifications an 
desirable to bring this agreement fully into effec 
among all nations which desire to encourage th( 
growth and safety of international travel by auto- 
mobile. More recently, in 1954, two new interna- 
tional agreements were drawn up at a United Na- 
tions conference looking toward the simplificatior 
and standardization of customs formalities foii 
automobiles and for personal effects of tourists ir 
general." Through reports submitted to its peri- 
odic meetings the Transport and Communications 
Commission is keeping abreast of developments 
in the field of international travel. 

There are numerous other examples of usefu' 
operations. The International Civil Aviatior 
Organization is steadily carrying forward its pro- 
gram of facilitation for air passengers and cargo 
and the beneficial results of this activity are feltl 



" Ihitl., Apr. 19, 1954, p. 60(5, and Jan. 24, 195.'), p. 121. 
742 



' ma., June 22, 1947, p. 1201. 
'Ibid., Dec. 12, 1949, p. 875a. 
'Ibid., .luly 19, 1954, p. 92. 



Department of State Bulletin 



In other fields than that of air transport alone. 
tjNESCO is also doing helpful work in promoting 
he development of travel. The Organization 
'or European Economic Cooperation has made 
mtstanding contributions to facilitating travel 
hrough obtaining wide reduction or elimination 
»f visa requirements among its member countries, 
md these benefits have also been extended to U.S. 
iitizens. The European Travel Commission has 
m extensive promotional program, financed by 
Deec, including advertising and publicity in the 
J.S. Among other energetic organizations are 
he International Union of Official Travel Or- 
ganizations, the International Air Transport As- 
lociation, the International Chamber of Com- 
aerce, the World Touring and Automobile 
Organization, the Pacific Area Travel Associa- 
lion, and the Caribbean Tourist Association. The 
[nter-American Travel Congresses have stimu- 
lated interest in travel in the Western Hemisphere, 
[t should be noted with appreciation that the 
jiternational Union of Official Travel Organiza- 
;ions and the World Touring and Automobile 
Organization have submitted useful papers which 
ire included in the docunaentation for the present 
iession CE/C .2/412 and 413). 

At a meeting of Ministers of Finance and Econ- 
)my m Rio de Janeiro in November 1954, a reso- 
iution was unanimously adopted calling for 
jonstructive action by all of the American Re- 
publics on promotion of international travel and 
x)urism. The resolution recommended that help- 
ful consideration be given to the problems of travel 
ievelopment, with special attention to the 
strengthening and supporting of official and pri- 

■' vate agencies engaged in the development of 
tourism. It also recommended the preparation of 
Bound technical assistance projects in such fields 
as hotel construction and operation, and promo- 
tional aspects of travel development including 
publicity and advertising. Further it encouraged 
the improvement of tourist attractions, such as 
health resorts, parks, historical and archeological 

^ sites. Thus at Rio de Janeiro, in an atmosphere 
similar to that of our session today, high govern- 

f" ment officials joined in declaring the importance 
of international travel and in indicating initial 
steps for action. 

Even the most remote corners of the world are 
becoming aware of the advantages of tourism. 
American newspapers this month carried an ac- 



count of the arrival at Katmandu, Nepal, of a 
first party of 12 visitors. The report epitomized 
the way in which organized travel develops, by 
recounting how Nepalese officials suggested some 
months ago to an international travel agency that 
a tour be arranged and how the agency promptly 
included a visit to Nepal in a round-the-world 
voyage it was conducting. Now, in Katmandu, 
government officials are talking of the new reve- 
nues to come from tourists, hotel facilities have 
been organized, and young men are planning 
careers as tourist guides. 

Other Considerations 

Now what exactly do we mean by the word 
"tourist"? It is well to give a clear definition of 
the word, because in some areas of the world it is 
used in too restricted a sense as only a sightseeing 
traveler. We use the term in its broadest sense — ■ 
that is, the bona fide nonimmigrant who desires to 
make a temporary visit to a foreign country for 
any legitimate purpose. In fact, we accept the 
definition in the Convention concerning Customs 
Facilities for Touring, drawn up at a United Na- 
tions conference in 1954.' That convention de- 
fined a tourist as being : 

Any person without distinction as to race, sex, language 
or religion, who enters the territory of a Contracting State 
otlier than that in which that person normally resides and 
remains there for not less than twenty-four hours and not 
more than six months in the course of any twelve month 
period, for legitimate non-immigrant purposes, such as 
touring, recreation, sports, health, family reasons, study, 
religious pilgrimages or business. 

Parenthetically it is interesting to note by this 
definition the broad scope of the travel market, 
from touring to business, from recreation to re- 
ligious pilgrimages, from sports to study, from 
health to family reasons. 

Programs to attract tourists should have a par- 
ticularly strong appeal to countries which now de- 
pend on one or two major items for most of their 
foreign exchange. Tourism brings a relatively 
stable source of income, less subject to sudden 
shifts in world prices, and yet requires only lim- 
ited investment, primarily for hotels and adver- 
tising or publicity. 

In facing the problem of lowering costs of travel 
and making it more available to a wider segment 
of the world's population, consideration should be 



U.N. doc. E/Conf. 16/20. 



743 



given to development of off-season travel — more 
aptly termed "thrift season" travel. Wlien hotels, 
planes, ships, or other facilities are provided to 
cater to a short season of a few peak months, prices 
tend to be high. Those tourist areas which have, 
tlirougli strong promotional efforts, together with 
the lielp of the carriere, developed a year-round 
tourist industry have found it possible to provide 
low-cost travel packages of interest to a broad 
market. Continued effort to extend the tourist 
season is highly desirable. In a number of areas 
great strides in this direction are already in 
evidence. 

Recommendations 

In the paper which uiy Government submitted 
to the United Nations in February, a number of 
specific proposals were offered for consideration 
by the Council in the encouragement of interna- 
tional travel. These are also embodied in a reso- 
lution which is now before the Council.* Upon 
them I would like to comment as follows : 

(1) Granted that there is general recognition 
of the place of travel in the field of international 
trade and friendly relationships, effective develop- 
ment depends upon the individual countries. In 
each nation increased attention to travel is needed 
as an important phase of its economic growth. 
This entails study of the current and potential 
travel market, tourist attractions and facilities, 
border-crossing formalities, promotional efforts— 
and the preparation of an efficient development 
program. 

(2) Because of distance and cost factoi-s, re- 
gional travel presents advantages in attracting 
large numbers of visitors. Witliin any region, 
and particularly between neighboring countries, 
special measures for facilitating travel are pos- 
sible, and indeed have been well developed in 
certain areas. 

(3) There is already a wealth of experience and 
talent available in the numerous official and pri- 
vate agencies engaged in the development of 
tourism. These resources should be strengthened 
and supported. Successful tourist development 
programs, in countries where a rapid growth of 
inbound tourists has been desired, have demon- 
strated the importance of strong governmental 



"TI.N. doc. E/Resohition (XIX)/2, adopted on Mar. 31 
by a vote of 17-0 with 1 abstention. 



financial support of tourist promotional activities. 
The sale of a country's tourist attractions to peo- 
ple of other countries requires government funds 
for the establisliment of foreign promotional 
offices and for paid advertising, publicity, and 
other sales development activities. Local tourist- 
service industries receiving tourist income are 
usually too small to carry out effective foreign 
sales programs of their own. 

(4) In some areas adequate hotel and other 
facilities are lacking, and this acts as a basic deter- 
rent to travel. Now that means of transportation 
are readily available to almost any point on the 
globe, a dearth of living accommodations may be 
the sole obstacle to a flow of visitors. Here would 
seem to be a fruitful field for the provision of gov- 
ernmental incentives for the encouragement of 
private investment. 

(5) Countries possessing well-developed tour- 
ist programs and facilities have an opportunity 
and an obligation to assist those with less experi- 
ence, if the goal of an expanded world-travel mar- 
ket is to be attained. Technical cooperation 
projects may be an answer to this problem and are 
worthy of prompt consideration. 

(6) International conventions, drawn up at 
United Nations conferences and representing tlie 
best judgment of governmental authorities and 
other competent experts, ]>rovide a means of uni- 
fied action by the nations. The United Nations 
conventions on road traffic (1949), on temporary 
importation of i"oad vehicles (1954), and on cus- 
toms facilities for touring (1954) are examples. 
Wide ratification of these agreements will provide 
a solid foundation for exjiansion and encourage- 
ment of international travel. 

(7) Statistics relating to travel are a fundamen- 
tal requirement for intelligent planning. Im- 
provement in their accuracy, comprehensiveness, 
and timeliness is desirable. Each country can well 
give attention to this problem. Means also should 
be found for establishing greater uniformity and 
comparability in travel statistics, and the services 
of the United Nations should be made available in 
arriving at uniform methods of compilation. 

(8) The problem of reducing border-crossing 
formalities to the fullest extent practicable requires 
constant study. These formalities include pass- 
ports, visas, health and police certificates, travel 
taxes, exchange controls, and other restrictive fac- 
tors. In this area, the desirable freedom of move- 



744 



Department of Stale Bullet'm\ 



iin'iit of the traveler must be viewed in the light of 
he national security and welfare, but any improve- 

lueiit in world conditions should be reflected in an 
■asing of current restrictions. 

jummary 

In conclusion, international travel is a fruitful 
;conomic activity — 

(1) which is important to international trade 
3Ut has not received the full recognition it deserves 
From governments; 

(2) in which all nations can participate and 
Drosper according to their will to plan for, provide 
For, and attract the tourist ; 

(3) in which the enlightened self-interest of 
each nation can build and develop a steady and 
ncreasing revenue ; 

(4) where nations which have highly developed 
ourist industries can share their successful experi- 
ence and technical know-how with covmtries which 
lesire to build a tourist industry ; 

(5) where nations building a tourist industry 
tvill be helping themselves to achieve a higher 
standard of living for their people and at the same 
ime contributing to the development of friendship 
md understanding among peoples as a solid foun- 
lation to lasting peace. 

iJ.S. Delegations to 
International Conferences 

ntergovernmental Committee for 
Luropean Migration 

The Department of State announced on April 22 
; press release 225) that the U.S. Grovernment 
vould be represented at the meeting of the Inter- 
^overmnental Committee for European Migration 
Tcem) opening at Geneva on April 21 by the fol- 
owing delegation : 

Jnited States representative 

Scott McLeod, Administrator, Bureau of Security and 
Consular Affairs, Department of State 

ilternate United States representatives 

■Villiam M. McCulloch, House of Representatives 
;!hauncey W. Reed, House of Representatives 
Trancis E. Walter, House of Representatives 
Vlrs. Dorothy D. Houghton, Deputy Director, Foreign 
Operations Administration 

'rindpal adviser 

ieorge L. Warren, Adviser on Refugees and Displaced 



Persons, Bureau of Security and Consular Affairs, De- 
partment of State 

AdxHsers 

Walter M. Besterman, House Judiciary Committee 
Richard R. Brown, U.S. Escapee Program, Foreign Opera- 
tions Administration, Fi-anltfort, (Jermany 
Dayton H. Frost, Foreign Operations Administration 
Joseph E. Gonzales, Senate Appropriations Committee 
Eleanor Guthridge, Senate Judiciary Committee 
Abba P. Schwartz, Washington, D.C. 
Hal E. Short, Bureau of Security and Consular Affairs, 

Department of State 
Guy J. Swope, Harrisburg, Pa. 

Public m-emhers 

Walter H. Jones, Trenton, N.J. 
Robert S. McCollum, Denver, Colo. 
Nick T. Stepanovich, East Chicago, Ind. 

The nine-member Executive Committee of 
IcEM will meet the first week, and the Council will 
be in session after April 27. An important action 
of the Council will be the election of the Director 
of IcEM, to succeed the lat« fomier Ambassador 
Hugh Gibson, who died in December 1954 at the 
close of the last Icem meeting.' The United States 
will nominate Harold H. Tittmann, Jr., who re- 
cently resigned as U.S. Ambassador to Peru. 

Since February 1952, when it launched opera- 
tions, Icem has transported over 300,000 persons 
to various parts of the world. On the initiative of 
the United States, the organization was estab- 
lished at Brussels, Belgium, in 1951 to facilitate 
the movement to new homes of migrants and refu- 
gees who would not otherwise be moved from 
overpopulated areas of Europe. There are now 
24 member governments. New Zealand and the 
Federation of Rhodesia and Nyasaland are can- 
didates for membership at the Council meeting. 



THE DEPARTMENT 



Designation 

Miss Frances G. Knight as Director of the Passport 
Office, effective May 1. 



' For a report of the eighth session of Icem and the 
first sessions of the Council and Executive Committee, see 
Bulletin of Mar. 7, 19.j5, p. 403. 



745 



Current Treaty Actions 



MULTILATERAL 

Customs Tariff 

Convention creating the international union for the pub- 
lication of customs tariffs, regulations of execution, 
and final declarations. Signe<l at Brussels .Inly 5, 1890. 
Entered into force April 1, 1891. 26 Stat. 1518. 
Notification of adherence given: Viet-Nam, April 1, 1955. 

Protocol niodifying the convention signed at Brussels 
July ,"), l,s!)0 (2G Stat. 1518), creating an international 
union for the publication of customs tariffs. Done at 
Brussels December 16, 1949. Entered into force May 5, 
1950." 
Notification of adherence given: Viet-Nam, April 1, 1955. 

Germany 

Protocol on the termination of the occupation regime in 

the Federal Republic of Germany, with five scliedules 

and related letters. Signed at I'aris October 23, 19.'54.' 

RatifiraHons deposited: Fe<^leral Republic of (Jermaay, 

April 20, lO-^S; United States, April 20, 1955. 

Convention on the presence of foreign forces in the Fed- 
eral Republic of Germany. Signed at I'arls October 23, 
1954.' 

Approval deposited: United States, April 20, 1955. 
Ratification deposited: Federal Republic of Germany, 
April 20, 1955. 

Labor 

Convention (No. 53) for minimum requirement of pro- 
fessional capacity for Masters and OflScers on board 
merchant ships. Done at Geneva October 24, 1936. 
Entered into force March 29, 1939. 54 Stat. 1683. 
Ratification registered: Arj^entina, February 17, 1955. 

Convention (No. 58) fixing the minimum age for admis- 
sion of children to employment at sea (revised 1936). 
Done at Geneva October 24, 1936. Entered into force 
April 11, 1939. 54 Stat. 1705. 
Ratification registered: Argentina, February 17, 1955. 

North Atlantic Treaty 

Protocol to the North Atlantic Treaty on the accession of 
the Federal l{epublic of Germany. Signed at Paris 
October 23, 1954." 

Acceptance deposited: Greece, April 18, 1955; Norway, 
April 18, 1955; Italy, April 20, 1955; United States, 
April 20, 1955 ; Belgium, April 22, 1955. 

Postal Matters 

Univer.sal po.stal convention, with final protocol, annex, 
regulations of execution, and provisions regarding air- 
mail and final protocol thereto. Signed at Brussels 
July 11, 1952. Entered into force July 1, 1953. TIAS 
2800. 
Ratifications deposited: Korea, March 10, 1955; Egypt, 

March 24, 1955. 
Adherence deposited: Germany, March 21, 1955. 



' Not In force for the United States. 
* Not In force. 



746 



Refugees 

Constitution of the Intergovernmental Committee for 
European Migration. Adopted at Venice October 19, 
1953. Entered into force November 30, 19.54, for the 
United States, Argentina, Australia, Austria, Canada, 
Chile. Denmark, Germany, Greece, Israel, Italy, Nether- 
lands, Norway, Paraguay, Sweden, and Switzerland. 
Acceptance deposited: Costa Rica, March 29, 1955. 

Whaling 

Amendments to paragraphs 4, 6, 7 (a) and (b), 9 (b), 
and 10 (d) of the amended Schedule to the International 
Whaling Convention of 1946 (TIAS 1849). Adopted at 
the Sixth Meeting of the International Whaling Com- 
mission held at Tokyo July 19-23, 19.54. 
Entered into force: November 8, 1954 (with the excep- 
tion of amendments to paragraph 4) for the United 
States, Australia, Brazil, Canada, Denmark, 
France, Iceland, Japan, Mexico, Netherlands, New 
Zealand, Norway, Panama, Sweden, Union of South 
Africa, U.S.S.R., and United Kingdom. 
Paragraph 4 (1) entered into force February 24, 

1955, except for Denmark and Iceland. 
Paragraph 4 (2) entered into force February 17, 
1955, except for the United States, Canada, Japan, 
and U.S.S.R. 

BILATERAL 

Bolivia 

Agreement extending agreement for a cooperative pro- 
gram of agriculture dated June 13 and IS, 1952 (TIAS 
2483). Effected by exchange of notes at La Paz Febru- 
ary 25 and March 3, 1955. Enters into force upon the 
signing of a corresponding extension to the operational 
agreement. 

Agreement extending agreement providing for a coopera- 
tive education program in Bolivia signed November 22, 
1950 (TIAS 2364). Effected by exchange of notes at 
La Paz February 25 and March 3, 1955. Enters into 
force upon the signing of a corresponding extension 
to the operational agreement. 

Agreement extending agreement providing for a coopera- 
tive health program in P.olivia dated September 18 
and October 7, 1950 (TIAS 2191). Effected by ex- 
change of notes at La Paz February 25 and March 3, 
1955. Enters into force upon the signing of a corre- 
sponding extension of the operational agreement. 

Panama 

Highway convention signed at PanamA September 14, 

19.50. Entered into force April 11, 1955. 

Proclaimed by the President: April IS, 1955. 
Convonticm regarding the Coldn Corridor and certain 

other corridors through the Canal Zone. Signed at 

PanamA May 24, 1950. Entered into force April 11, 

1955. 

Proclaimed by the President: April 18, 1955. 

Yugoslavia 

Surplus agricultural commodities agreement, and related I 
letters. Signed at Belgrade January 5, 1955. Entered I 
into force January 5, 1955. 

Department of State Bulletin 



Mav 2, 1955 



Index 



Vol. XXXII, No. 827 



American Republics. Pan Americanism — Product of a 

Great Design (Dulles) 728 

^sia. Recent Developments in Foreign Relations 

(Dulles) 727 

Vustria. Exchange of Views Concerning Austrian State 

Treaty (texts of notes, statements, communique) . . 733 
■hinn 

hiiirse Communist Intentions in Formosa Area . . . 738 
"onsultation at Taipei Under Mutual Defense Treaty . . 732 
oneress. The 
ecomraendations for 1956 Mutual Security Program 

(Elseniiower) 711 

eventli Semiannual Report to Congress on the Mutual Se- 
curity Program (text of letter and excerpt from 
report) 717 

uba. Letters of Credence (De la Campa y Caraveda) . 732 

zechoslovakia. U.S. Rejects Demand for Return of Czecho- 
slovali Border Guard (excerpts of U.S. and Czecho- 
slovak notes) 736 

conomic Affairs. Increasing International Travel 

(Hotchkis) 741 

urope. Recent Developments In Foreign Relations 

(Dulles) 727 

ermany. Proposal for Four-Power Talks on Road Tolls 

in East Germany (Conant) 736 

iternattonal Organizations and Meetings 

alenilar of Meetings 739 

.S. Delegations to International Conferences (Intergov- 
ernmental Committee for European Sligration) . . 745 

utual Security 

econimcndations for 1956 Mutual Security Program 

(Eisenhower) 71I 

eventh Semiannual Report to Congress on the Mutual 
Security Program (text of letter and excerpt from 
report) 7I7 

oland. U.S. Requests Information on Polish Underground 

Leaders (text of notes) 737 

residential Documents 

ecommendations for 1956 Mutual Security Program . . 711 
ventli Sciannual Report to Congress on the Mutual 

Security Program 717 

fugees and Displaced Persons. U.S. Delegations to Inter- 
national Conferences (Intergovernmental Committee 
for European Migration) 745 

ate. Department of. Designation (Knight) 745 

eaty Information 

jrrent Actions 74Q 

schange of Views Concerning Austrian State Treaty 

(texts of notes, statements, communique) .... 733 



U.S.S.R. 

E.tchange of Views Concerning Austrian State Treaty 

(texts of notes, statements, communiques) .... 733 

U.S. Requests Information on Polish Underground Lead- 
ers (text of notes) 737 

United Nations. Increasing International Travel 

(Hotchkis) 741 

Viet-Nam. General Collins Returns for Consultation . . 738 

Name Index 

Collins, J. Lawton 735 

Conaut, James B 736 

De la Campa y Caraveda, Miguel Angel 732 

Dulles, Secretary 727 728 

Eisenhower, President 711, 717 

Fojtik, Jan 736 

Hotehlds, Preston 741 

Knight, Frances G 745 

Molotov, Vyacheslav M 735 



Check List of Department of State 
Press Releases: April 1824 

Releases ma.v be obtained from the News Division, 
Department of State, Wasliington 25, D.C. 

Press releases issued prior to April 18 which 
appear in this issue of tlie Bulletin are Nos. 198 
of April 11 and 206 of April 14. 
No. Date Subject 

t213 4/18 U.S. architects visit Berlin (rewrite). 
214 4/18 Collins' return from Viet-Nam for 

consultation. 
1215 4/19 Dulles: Yalta papers. 

216 4/19 Austrian state treaty. 

217 4/20 Consultation at Taipei. 

*218 4/20 Sparks: dedication of statue of Boni- 
facio. 

t219 4/20 Surplus commodity agreement with 
Spain. 

220 4/21 Cuba credentials (rewrite). 

221 4/21 Notes on Polish underground. 
t222 4/22 Presentation of German drawings. 
t223 4/22 Conference on fur seals. 

224 4/22 Note to U.S.S.R. on Austrian treaty. 

225 4/22 Delegation to Icbm (rewrite). 

226 4/23 Comment on Chou En-lai statement. 



*Not printed. 

fHeld for a later issue of the Bulletin. 




the 

epartment 

of 

State 



Order Form 

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



Encloaed find: 



(ciuh, cheek, or 



United States penalty for private use to av 

-^ »* ,«. payment of postage, f300 

Government Printing Office ,gpoi 

division of public documents 
Washington 25, D. C. 

OFFICIAL BUSINESS 



The General Agreement on Tariffs and Trade (Gatt) came 
into existence on January 1, 1948, as an undertaking by eight 
of the most important world trading countries, including the 
United States. This agi-eement sets out general rules for the 
conduct of international trade and establishes standards for 
international cooperation through joint negotiation of the re- 
duction of tariffs and the elimination of other barriers to free 
world trade. Today 34 countries participate in this unique 
international cooperative association. Together, they account 
for about 80 percent of world trade. 

As a result of changes in world economic conditions since 
1948, representatives of the countries participating in the Gen- 
eral Agreement recently made an intensive review of its pro- 
visions. They proposed amendments which are designed to 
strengthen the agreement and to provide a permanent organiza- 
tion (Organization for Trade Cooperation) to administer the 
world trade rules. The amendments agreed upon will come 
into operation after approval by the contracting parties. 

Two recent Department of State publications explain this 
important agreement and the proposed amendments : 

General Agreement on Tariffs and Trade . . . 

Present Rules and Proposed Revisions 45 cents 

(A comparative study.) 

The General Agreement on Tariffs and Trade . . . 

An Explanation of Its Provisions and the Proposed Amendments 

Publication No. 5813 20 cents 

(An explanation in layman's language.) 

These publications may be purchased from the Superin- 
tendent of Documents, U.S. Government Printing Office, 
Washington 25, D.C. 

Please send me copies of 

General Agreement on Tariffs and Trade . . . 
Present Rules and Proposed Revisions 

Please send me copies of 

The General Agreement on Tariffs and Trade . . . 

An Explanation of Its Provisions and the Proposed Amendments 

Name: 

Street Address: 



//i€/ ^efuM^inven/t/ /C^ t/toyte/ 




'ol. XXXII, No. 828 
May 9, 1955 



^eNT o*. 




^ATaa o* 





STEPS ON THE ROAD TO PEACE • Address by the 

President 751 

POSSIBILITIES OF CEASE-FIRE IN FORMOSA 

STRAIT • Transcript of Secretary DuUes' Netcs Confer- 
ence 755 

LOOKING AHEAD WITH THE UNITED NATIONS • by 

Assistant Secretary Key 768 

WORLD PROGRESS IN IMPROVING THE STATUS 

OF WOMEN • Statements by Mrs. Lorena B. Hahn . . 777 

SOCIAL DISCONTENT IN THE NEAR EAST: A 
CHALLENGE TO PUBLIC RESPONSIBILITY • 

Article by Stephen P. Dorsey 760 



For index see inside back cover 



Boston Public Library 
iuperintenrtpnt of Documents 

JUN6-1955 




^...^>,/*. bulletin 



Vou XXXII, No. 828 • Publication 5851 
May 9, 1955 



For sale tiy the Superintendent of Documents 

U.S. Government Printing Office 

WasblngtoD 2S, D.C. 

Pbice: 

62 Issues, domestic $7.60, foreign $10.26 

Single copy, 20 cents 

The printing of this publication has been 
approved by tho Director of the IJurcau of 
the Budget (January 19, 1956). 

Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
or State Bulletin as the source will be 
BpprL-ciatud. 



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

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



steps on the Road to Peace 



Address hy the President ^ 



Always, I feel it is a special privilege when I 
can meet with men and women of the newspaper 
profession. Our newspapers have traditionally 
been a guaranty that truth will reach every part 
Df our own country and all the free peoples of the 
s?orld. I have heard you referred to as a one- 
party press. If this is true, I do trust that the 
slogan, tlie purpose, the aim of your party is to 
spread the truth. If that is so, I apply for mem- 
aership. Never was it more important than it is 
oday that the people of the entire world have 
free access to the truth. 

Recently I read a story about one particular seg- 
nent of the newspaper community of America 
ind how it helped spread the truth even beyond 
he barriers devised against its communication — 
nto the homes of the Communist-dominated lands. 
Some 20,000 newspaper boys voluntarily con- 
ducted a fund-raising campaign for the Crusade 
'or Freedom. That Crusade brings truth to those 
|)ehind the Iron Curtain, to people who otherwise 
:ould not have it. Of course, the boys' campaign 
s not one of the normal functions of the American 
lewspapers — but the incident gives heartening 
vidence of newspaper people's unflagging interest 
n tlie maintenance of freedom and of human hope 
or peace. Certainly, I am inspired by the knowl- 
idge that boys of this Nation will freely give of 
heir time and their energy — and, more important, 
heir hearts — to help bring information of today's 
rorld to those wliose masters provide them noth- 
ng but propaganda. 

In this day every resource of free men must be 
austered if we are to remain free; every bit of 



' Made before the annual luncheon of the Associated 
■ress at New York, N. Y., on Apr. 25 (White House press 

elease). 



our wit, our courage, and our dedication must be 
mobilized if we are to achieve genuine peace. 
There is no age nor group nor race that cannot 
somehow help. 

Just over 2 years ago I had an opportunity to 
appear before the American Society of Newspaper 
Editors.^ I then pledged your Government to an 
untiring search for a just peace as a fixed and 
abiding objective. In our search for peace we 
are not bound by slavish adherence to precedent 
or halted by the lack of it. The spirit of this 
search influences every action of your administra- 
tion; it affects every solution to problems of the 
moment. 

It prompted my proposal before the General 
Assembly of the United Nations that governments 
make joint contributions of fissionable materials 
to an International Atomic Energy Agency for 
peaceful research — so that the miraculous inven- 
tiveness of man may be consecrated to his fuller 
life. 

It inspired last week's offer of jjolio information, 
research facilities, and seed virus' — so that Dr. 
Salk's historic accomplishment may free all man- 
kind from a physical scourge. 

Atomic-Powered Merchant Ship 

It provides the reason for a plan that, after 
lengthy study, I am able now to announce. We 
have added to the United States program for 
peaceful uses of atomic energy an atomic-powered 
merchant ship. The Atomic Energy Commission 
and the Maritime Administration are now develop- 
ing specifications. I shall shortly submit to the 



• Bulletin of Apr. 27, 19.",.3, p. 599. 
' Ihid., Apr. 25, 1955, p. 689. 



lay 9, ?955 



751 



CJongress a request for the necessary funds, to- 
gether with a description of the vessel. 

The new ship, powered with an atomic reactor, 
will not require refueling for scores of thousands 
of miles of operation. Visiting the ports of the 
world, it will demonstrate to people everywhere 
this peacetime use of atomic energy, harnessed for 
the improvement of human living. In part, also, 
the ship will be an atomic exhibit, carrying to all 
people practical knowledge of the usefulness of 
this new science in such fields as medicine, agri- 
culture, and power production. 

The search for peace likewise underlies the plan 
developed for expanding foreign trade embodied 
in H. R. No. 1 now before the Congress. 

In every possible way, in word and deed, we 
shall strive to bring to all men the truth of our 
assertion that we seek only a just and a lasting 
peace. 

There is no precedent for the nature of the strug- 
gle of our time. Every day, in our newspapers, 
we are confronted with what is probably the great- 
est paradox of history. 

Out of an instinctive realization of the horror of 
nuclear war the hunger of virtually every human 
being on this planet is for tranquil security, for an 
opportunity to live and to let live, for freedom, 
for peace. And yet, defying this universal hun- 
ger, certain dictatorships have engaged in a delib- 
erately conceived drive which periodically creates 
alarms and fears of war. 

Eflect of Recurrent Crises 

In our uneasy postwar world, crises are a recur- 
rent international diet ; their climaxes come and go. 
But so they have — in some degree^since the be- 
ginning of organized society. By their effect on 
human action, the peril within them is either mag- 
nified or diminished. 

A crisis may be fatal when, by it, unstable men 
are stampeded into headlong panic. Tlien — bereft 
of common sense and wise judgment — they too 
hastily resort to armed force in the hope of crush- 
ing a threatening foe, although thereby they im- 
poverish the world and may forfeit the hope for 
enduring peace. 

But a crisis may likewise be deadly when inert 
men — unsure of themselves and their cause — are 
smothered in despair. Then, grasping at any 
straw of appeasement, they sell a thousand tomor- 
rows for the pottage of a brief escape from reaUty. 

752 



But a crisis is also the sharpest goad to the cre- 
ative energies of men, particularly when they 
recognize it as a challenge to their every resource 
and move to meet it in faith, in thought, in cour- 
age. Then, greatly aroused — yet realizing that 
beyond the immediate danger lie vast horizons — 
they can act for today in the light of generations 
still to come. The American people, 164 million 
of us, must recognize that the unprecedented crises 
of these days — packed with danger though they 
may be — are in fullest truth challenges that can 
be met and will be met to the lasting good of our 
country and of the world. 

Two Great Objectives 

Two great American objectives are mountain 
peaks that tower above the foothills of lesser goals. 
One is global peace based on justice, mutual re- 
spect, and cooperative partnership among the 
nations. The other is an expanding ^Vmerican 
economy whose benefits, widely shared among all 
our citizens, will make us even better able to co- 
operate with other friendly nations in their eco- 
nomic advancement and our common prosperity. 

The fundamental hazard to the achievement of 
both objectives is the implacable enmity of godless 
communism. That hazard becomes the more fear- 
some as we are guilty of failure among ourselves — • 
failure to seek out and face facts courageously, 
failure to make required sacrifices for the common 
good, failure to look beyond our selfish interests of 
the moment, failure to seek long-term betterment 
for all our citizens. 

Recognizing the ruthless purposes of inter- 
national communism, we must assure, above all 
else, our own national safety. At the same time 
we must continue to appeal to the sense of logic 
and decency of all peoples to work with us in the 
development of some kind of sane arrangement 
for peace. 

But when a nation speaks alone, its appeal may 
fall on deaf ears. Many nations must combine 
their voices to penetrate walls of fear and preju- 
dice and selfishness and ignorance. The principal 
objective of our foreign policy, therefore, as we 
search for peace, is the construction of the strong- 
est possible coalition among free nations. The 
coalition must possess spiritual, intellectual, ma- 
terial strength. 

In things spiritual, the common effort must be 
inspired by fairness and justice, by national pride 

Department of State Bulletw 



and self-respect. It must be based on the inalien- 
able rights of the individual who — made in the 
image of his Creator — is endowed with a dignity 
and destiny immeasurable by tlie materialistic 
yardstick of communism. 

In things intellectual, the coalition must mani- 
fest such common sense and evident logic that all 
nations may see in it an opportunity to benefit 
tliemselves. Certainly, it must proclaim the right 
of all men to strive for their own betterment, and 
it must foster their exercise of that right. 

In things material, the friendly partnership 
must be sinewed by expanding economies within 
all its member nations, mutually benefiting by a 
growing trade volume that must be joined in reali- 
zation that their security interdependence is par- 
alleled by their economic interdependence. 

Domestic Economy 

By sound economic thinking and action, we 
Americans can hasten the acliievement of both 
our great goals — peace among the nations; a 
widely shared prosperity at home. 

We have an unmatched production system. But 
even our economy will not thrive if confined to 
our own land. So to sustain our own prosperity 
and economic growth we must strengthen the 
3Conomic bonds between us and others of the free 
world. Thus we confront the Communists with 
1 vast and voluntary partnership of vigorous, 
expanding national economies whose aggregate 
power and productivity, always increasing, can 
lever be successfully challenged by the Commu- 
nist world. 

The issue is clean cut. Either we foster flourish- 
ng trade between the free nations or we weaken 
,he free world and our own economy. Unless 
rade links these nations together, our foreign 
)olicy will be encased in a sterile vacuum; our 
lomestic economy will shrink within its continen- 
al fences. The enlargement of mutually bene- 
icial trade in the free world is an objective to 
vhich all of us should be fully dedicated. 

Ours is the most dynamic economy yet devised 
>y man, a progress-sharing economy whose ad- 
'ance benefits every man, woman, and child living 
dthin it. Last year, our gross national product 
xceeded $357 billion. Twenty years ago few 
TOuld have believed such an achievement even a 
emote possibility. Nevertheless, continuation of 
urrent rates of increase will bring us by 1965 to 



$500 billion or more as our gross national product. 
This will mean a tremendous advance in the living 
standards of the American people. 

Expansion of Foreign Trade 

But a $500 billion economy by 1965 can be 
achieved only within the framework of a healthy 
and expanding free world economy. Trade ex- 
pands markets for the increased output of our 
mines, our farms, and our factories. In return 
we obtain essential raw materials and needed 
products of the farms and factories of others. 
Likewise, the markets provided here for the prod- 
ucts of other free-world countries enable them to 
acquire fi'om us capital equipment and consumer 
goods essential to their economic development and 
higher living standards. 

American agriculture sells abroad from one- 
fourth to one-third of major crops such as wheat, 
cotton, and tobacco. Without these export mar- 
kets there can be, under current conditions, no 
enduring prosperity for the American farmer. 

American factories and labor likewise have an 
important stake in foi-eign trade. Last year this 
country sold over $9 billion of industrial products 
abroad. Over 3 million workers — American 
workers — are directly dependent on exports for 
their jobs. Jungles the world romid are being 
tamed today by American bulldozers; new mines 
are being opened by our drills and equipment; 
fields that liave been cultivated by hand for cen- 
turies are yielding new harvests to our agi-icultural 
machines; our automobiles, trucks, and buses are 
found wherever there are roads; and new indus- 
tries to employ the teeming millions within the 
underdeveloped nations are being equipped with 
our machine tools. 

The expansion of our foreign trade should pro- 
ceed on an orderly basis. Reductions in tariffs 
and other trade barriers, both here and abroad, 
must be gradual, selective, and reciprocal. Changes 
which would result in the threat of serious injury 
to industry or general reduction in employment 
would not strengthen the economy of this country 
or the free world. The trade measures that I 
have recommended to the Congress were prepared 
in recognition of these facts. 

Now, to abandon our program for the gradual 
reduction of unjustifiable trade barriers — to 
vitiate the administration proposals by crippling 
amendments — would strike a severe blow at the 



Aay 9, 1955 



753 



cooperative efforts of the free nations to build up 
their economic and military defenses. It could 
result in increasing: discrimination against our 
ex])orts. It could lead to widespread trade re- 
strictions and a sharp contraction in world trade. 
This would mean lowered production and employ- 
ment at home. It could mejin a retreat to economic 
natioiuilism and isolationism. It would constitute 
a serious setback to our hopes for global peace. 

Two-way trade, I believe, is a broad avenue by 
which all men and all nations of good will can 
travel toward a golden age of peace and plenty. 
Your administration is committed to help build- 
ing it. I personally believe it is to the common 
good of all 164 million of our people, and I shall 
not relax my personal effort toward its achieve- 
ment. 

We shall succeed, given the support of all 
who — unaffrighted by crises — are prej^ared to act 
on today's problems while they work for tomor- 
row's better and happier life. The accomplish- 
ment of this goal is worthy of the best effort of 
all Americans. Through you — you who gather 
here — and all your associates dedicated to the mis- 
sion of spreading the truth, a more rapid progress 
can be made. 

Universal Ideal 

As we build a richer material world, we must 
always remember that there are spiritual truths 
which endure forever. They are the universal 
inspiration of all mankind. In them, men of both 
the free world and the Communist world could 
well find guidance. Do we remember those words 
of our faith, "All things whatsoever ye would that 
men should do to you, do ye even so to them"? 

Do we remind ourselves that a similar thread 
of peaceful and lofty exhortation reveals itself 
in the words of every one of the world's historic 
religious leaders — eveiy one of them? Their fol- 
lowers today people great nations. 

The Far East, the Middle East, the Near East, 
the West — Asia and Africa and Europe and the 
American Hemisphere — all alike possess in their 
heritage the same universal ideal. Wl\y then 
should we permit pessimism to slow our efforts, 
despair to darken our spirit? Cannot we convince 
ourselves and others that in cooperation there is 
strength ? 

Cannot you, men and women of tjie jien, jn-opa- 
gatc knowledge of economic truth just as your 



professional forebears spread the truths that in- 
spired our forefathers to achieve a national in- 
dependence? For when all people, everj'where, 
understand that international trade — peaceful 
trade — is a fertile soil for the growth of a shared 
prosperity, of all kinds of cooperative strength, 
and of understanding and tolerance, the fruits 
thereof will be another historic step on the road 
to universal peace. 



Hopeful Developments 
in Europe and Asia 

News Conference Statement hy Secretary Dulles 

Press release 230 dated April 26 

I feel that developments of the last 10 days 
may in retrospect seem of decisive importance both 
in Europe and in Asia. 

The Bandung conference, as we had hoped, 
seems to have exerted a restraint on the Chinese 
Communists. I had always felt that it would be 
salutary if the Chinese Communists were con- 
fronted with the opinion of the free nations of 
Asia. That opinion was powerfully expressed in 
favor of peace and against direct and indirect 
aggression. There seems now a chance that the 
Comnnmist Chinese may be deterred from pursu- 
ing the course of violence which has characterized 
their action in relation to Korea, to Tibet, to Indo- 
china, and, more recently, in relation to the Tai- 
wan (Formosa) Straits. 

The Chinese Communists found no backing for 
their announced program of seizing Taiwan (For- 
mosa) by force. On the contrary, they felt it 
useful in the last hours of the Bandung confer- 
ence to propose to negotiate a peaceful settlement 
Wiether or not that was a sincere proposal re- 
mains to be seen. Perhaps the Chinese Commu- 
nists were merely playing a propaganda game. 
But we intend to ti-y to find out. In doing so we 
shall not, of course, depart from the path of 
fidelity and honor toward our ally, the Republic 
of China. 

In Europe, the most significant development is 
the apparent willingness of the SoAnet Union to 
liberate Austria and to withdraw its troops of 
occupation which have now been in Austria for 
over 1(1 years. We still do not know wliether the 
Soviet Union is sincere in its proposal or whether 



754 



Department of Sfafe Butlelin 



there are as yet undisclosed conditions. However, 
again we intend to find out. 

At Moscow in 1943 the Soviet Union joined in 
promising a "free and independent Austria." If 
the Soviet Union is now sincere, tliere will be a 
victory for basic principles of justice. If such 
principles finally prevail in relation to Austria, 
there is no reason to doubt that they may also 
prevail in relation to other parts of Europe, so 
long as we are steadfast in our adherence to them. 

I do not minimize the difficulties ahead. The 
road ahead is long and there may be — there almost 
surely will be — disappointments and setbacks. 
But recent developments seem to give new ground 
for ho23e. Also they justify holding the position 
of strong dedication to principle, which alone can 
brine about the results which we seek. 



Possibilities of Cease-Fire 
in Formosa Strait 

Press release 231 dated April 26 

Following is the transcript of Secretary Dulles' 
news conference of April 26 relating to the possi- 
bilities of a cease-fire in the Fonnosa Strait. 

Q. Mr. tSecretary, would you agree with Senator 
George that the United States should sit down 
and talk with Red China even though Nationalist 
China might not he present? 

A. That depends on what we talk about and 

whether there is evidence that such talks would 

be held in good faith on both sides. We are not 

going to talk about the interests of the Republic 

' of China behind its back. 

Q. Mr. Secretary, I believe you said you would 
I try to find out if the Communists are sincere. 
^ What steps do you have in mind to do that? 

A. There are inquiries that we can make through 
1 friendly governments to find out what the Com- 
> munists have in mind. For example, the state- 
ment as made by Chou En-lai the last day at 
Bandung is somewhat cryptic in that he said in 
substance that no conference should deny the 
sovereign right of the People's Republic to "liber- 
ate" Taiwan. If that means that the Communists 
are not prepared to talk about a cease-fire in the 
area, if they are not willing to give up the achieve- 
ment of their ambitions through force, then obvi- 



ously there would be no reason that I can see to 
talk with them. 

Q. Mr. Secretary, in the light of what you said 
this morning, are we right in assmning iihat the 
conditions, or what seem to he conditions, in the 
Saturday statement of the State Departmenf^ 
are not regarded hy you as conditions prior to 
discussion with the Chinese Communists? 

A. There are two paragraphs in the State De- 
partment release, as I recall. The first paragraph 
said in substance that we would not discuss a dis- 
posal of the area in the absence of the Chinese 
Nationalists. That stands as a precondition. We 
are not going to deal with the rights of the Chinese 
Nationalists, and their claims, in their absence. 

Now, the other paragraph mentions certain 
things which it said would clear the air and be 
evidence of sincerity. Those are not stated as con- 
ditions precedent. It said that it would be helpful 
if the Chinese Communists would release our fly- 
ers, etc. Those things were not stated as conditions 
and were never intended to be conditions. They 
are very much like what the President and I often 
said in relation to the rulers of tlie Soviet Union — 
that it would be very helpful evidence of their 
sincerity if they would do certain things such as 
signing the Austrian treaty. That was one of the 
things mentioned 2 years ago by the President in 
his "Chance for Peace" address.^ Nevertheless, 
that was never regarded as an indispensable pre- 
requisite to talking with the Soviet Union. Ac- 
tually, before any Austrian treaty, I did meet with 
the Soviet Union at Berlin. 

Q. Mr. Secretary, did you see the statement or 
approve the statement hefore it was issued on 
Saturday? 

A. No, I was away. Wlien I get away I am 
really away, up there. 

Q. Mr. Secretary, there is a report that the state- 
ment loas very hadly received hy our friends and 
elseichere in the free world. Will you comment on 

that? 

A. No, except I am not aware of the fact. 

Q. Mr. Secretary, would official talks, as pro- 
posed hy the Chinese Communists, he tantamount 
to a semirecognifion of the Red Government? 



' Bulletin of May 2, 1955, p. 738. 
' Ibid., Apr. 27, 1953, p. 599. 



May 9, 1955 



755 



A. No, we have made that perfectly clear when 
we talked to them before. Remember that it 
would be nothing new for us to talk with the 
Chinese Communists. "We negotiated the armis- 
tice in Korea with the Chinese Communists. We 
had some discussions with the Chinese Commu- 
nists at Geneva. We made it perfectly clear on 
both occasions, in fact, it was said explicitly in 
the Berlin resolution which convoked the Geneva 
conference, that the fact that we met together 
would not involve diplomatic recognition. Of 
course that would also be explicit in any further 
talks we had. 

Q. Mr. Secretary^ would you he loilling to un- 
dertake direct negotiation.'! with the Chinese Com- 
munists providing they agreed to participation of 
Nationalist China, or would you prefer that they 
be held under the auJipices of the United Nation.^? 

A. We believe it to be preferable that negotia- 
tions should be held under the auspices of the 
United Nations, and I do not give up hope that 
they might be held under those auspices. I read 
last night, the first time I had a chance to do so, 
the final conununique of the Bandung conference. 
Wliat impressed me, as I rend through it. was 
the extent to which that communique talks about 
the United Nations. Almost every paragraph 
brings in the United Nations and the various ac- 
tivities of the United Nations. Since that com- 
munique was acceptable to the Chinese Commu- 
nists, perhaps they do not have such a repugnance 
to the United Nations as seemed to be the case 
when last January they were invited by the United 
Nations to have discussions.' 

Q. Mr. Secretary, are you planning to take any 
steps to revive the United Nations effort in this 
matter? 

A. I doubt whether it is useful to revive the 
United Nations effort at this particular juncture 
without preliminaries to find out if it would be 
apt to succeed. 

Q. Mr. Secretary, do xre definitely plan to mahe 
these inquiries throu/gh friendly governments? I 
think you said we might. 

A. I said we might because these matters all 
require a certain amount of deliberation. What 
was said at Bandung is coming in gradually — 



" Ibid.. Feb. 14, m.^r,. p. 251. 
756 



some I only got this morning, in fact, from some 
of the friendly governments. Tlieref ore, we have 
not had an opportunity yet to formulate anything 
so definite that I could speak in the past tense, as 
of something already decided. 

Q. Mr. Secretary, do you attach any signifi- 
cance to the fact that the Chinese Communists pro- 
posed bilateral negotiations with us and that the 
Russians not long ago proposed a 10-power con- 
ference to discuss the same matter, or the Formosa 
issue? 

A. I noticed that fact, and I thought it had a 
certain significance. 

Q. Which loould you prefer? 

A. Well, I found quite unacceptable the Soviet 
proposal for a 10-power conference with the com- 
jiosition suggested and with the omission of the 
Chinese Nationalists from that group. Much de- 
pends on what it is you are going to discuss — the 
subject matter of the conference. The agenda, so 
to speak, itself operates to determine to a consid- 
erable extent who it is that ought to be there. So 
far we are very much in the dark as to what might 
be discussed. 

Q. Mr. Secretary, does that mean you would not 
rule out lilateral talks? Tou would not rule it 
out? 

A. No. 

Q. Mr. Secretary, you started to say you icould 
attach some significance to this, and then you did 
not say what significance you wouJd attach — 

A. It tends to confirm the fact that in this area 
the Chinese Communists exercise, I think, a meas- 
ure of independence. I think that their basic 
policies are undoubtedly coordinated with the So- 
viet Union and that the Party discipline is exerted 
in both countries along fundamental lines. But 
certainly as respects details, the application of 
agi'eed principles, there is a far greater measure 
of independence exercised by the Chinese Com- 
munists than is the case with reference to the satel- 
lite countries of Europe, for example. 

Q. Mr. Secretary, in the Chou En-lai proposal 
he spoke not only of the specific Formosa problem 
but of the general Far East problem. Is it your 
view that our position is that we should settle the 
Formosan problem before we get into a larger dis- 
cussion with Communist China, or is it possible to 

Department of State Bulletin 



have a larger discussion in which Formosa can be 
a part of it? 

A. The first thing, it seems to me, that requires 
to be determined is whether we must prepare for 
war in that area or whether there is apt to be a 
cease-fire in tlie area. One cannot very well settle 
matters under the threat of a gun. So far there 
has been nothing but war threats in the area. 
There has been and there is still continuing a very 
large buildup, particularly of Chinese Communist 
air capabilities, in the Formosa Straits area. There 
has been until quite recently a very violent propa- 
ganda campaign to the effect that they were going 
to take Formosa by force and that the islands, 
such as Tachen, were useful to carry out their 
program of force. As I say, you do not negoti- 
ate — at least, the United States does not negoti- 
ate — with a pistol aimed at its head. 

The first thing is to find out whether there is a 
possibility of a cease-fire in the area. That is a 
matter which can be discussed perhaps bilaterally, 
or at the United Nations, or possibly under other 
circumstances. But I regard a cease-fire as the 
indispensable prerequisite to anything further. 
When you get into further matters, then the in- 
terests of the Chinese Nationalists would naturally 
come to play a very large part. 

Q. Mr. Secretary, have the Nationalist Chinese 
accepted the concept of a cease-fire? Are they pre- 
pared to accept a cease-fire in that area? 

I A. They have indicated opposition to a cease- 
fire in the area, and in that respect our views do 
not wholly coincide. At the time when New Zea- 
land put this matter on the agenda of the Security 
Council, there was, as I recall, a statement issued 
by the Chinese Nationalists indicating they did not 
favor a cease-fire in the area. 

Q. Mr. Secretary, you said that, after dis- 
■>/.\\!)ig the cease-fire, in other matters the interests 
?f the Chinese Nationalists would play a part. 
Do I understand correctly from what you said 
"hat the presence of the Chinese Nationalists would 
wf he indispensable for the discussion of a cease- 
Ire? 

A. Not as far as concerns a cease-fire which in- 
'olved the possible interests of the United States, 
vhich has undertaken to react to an attack against 
^'ormosa. If we could get assurances there was to 



be no attack against Formosa, we would accept 
those. 

Q. Mr. Secretary, it has been suggested that the 
move by the Chinese Communists — by Chou En- 
lai at Bandung — did not come a.? a complete sur- 
prise but in fact you had some information, or at 
least expectations of it — that it figured in your 
discussions with the President in Augusta and it 
may perhaps have played some part in the mission 
of Assistant Secretary of State Robertson and 
Admiral Radford at Formosa.* 

A. I would say this : It is no secret that we have 
hoped that the Bandung conference would result 
in a more peaceful attitude on the part of the 
Chinese Communists. I have sometimes said that 
I felt that a great deal would depend, as far as the 
future is concerned, on whether the Chinese Com- 
munists came away from Bandung feeling that 
they had a green light to go ahead and take 
Formosa by force or whether they felt that to do 
so would antagonize the good will of the free 
Asian countries which they were seeking. 

It is that thought which influenced us as far 
back as the Bangkok conference. There, you may 
recall, was introduced a resolution of greeting to 
the Bandung conference and an expression at that 
time of the hope that the Bandung conference 
would set in motion forces for peace. After I 
was at Augusta with the President, you may recall 
that I said then that the President hailed the 
Bandung conference and called on it to "exert a 
practical influence for peace where peace is now 
in grave jeopardy." ^ We have all along believed 
that if the Chinese Communists would get in con- 
tact with the opinion of the free peoples, the free 
nations of Asia, they would realize much more 
fully than they have so far that their policy of 
relying upon force, the policy to which I alluded 
in the opening statement," was a policy which it 
was not in their best interests to follow. 

I don't think that there occurred any moral or 
spiritual conversion on the part of the Chinese 
Communists. But I do think that there may have 
been a realization of the fact that a real peacef ul- 
ness, instead of just talk about peace while carry- 
ing on war, was from their standpoint the best 



* Ihid., May 2, 1955, p. 732. 
° /6i(J., p. 727. 

• See p. 754. 



VI oy 9, ?955 



757 



policy. If tliixt has happened, it is something 
wliich we can be very glad about. 

Q. Mr. Secretary, do you attribute these en- 
couraging developments to Mr. Hammarskjold''s 
negotiations? 

A. I doubt if there is any discernible relation- 
ship between the two. 

Q, I just wanted further clarification of my 
question as to whether these considerations played 
a part in the mission of Admiral Radford and 
Secretary Robertson in Formosa. 

A. They played a part, although I would not 
say a decisive part. 

Q. Mr. Secretary, hoio much are you ahle to 
tell us this morning about the mission of Admiral 
Radford and Secretary Robertson? 

A. Very little, other than to say that the situa- 
tion in that area has been precarious. We did not 
know whether it would take a turn for the better 
or the worse as a result of the Bandung conference. 
I have referred already to the buildup that is pro- 
ceeding on the China mainland, which has very 
distinct military implications, some of which in 
turn have political implications. In view of that 
it seemed useful to have another high-level talk 
and to have Assistant Secretary of State Robert- 
son and Admiral Radford canvass the political 
and military aspects of the situation in the For- 
mosa Straits in the light of new developments 
wliich had occurred. It was a general, overall 
review of the factors, political and military, and 
it seemed useful to carry that on in a personal, 
direct way at a high level, such as has been done, 
rather than depend upon cable communication, 
which in these matters is not always satisfactory. 

Q. Mr. Secretary, could you persuade them to 
he a little more friendly to the idea of a ceai^e-fre? 

A. I can't add to what I have said except to say 
this — Secretary Robertson and Admiral Radford 
did not go out there with the idea of exerting any 
coercive pressures upon the Chinese Nationalists. 
They went over to sit down together as allies, as 
partners, to discuss the situation that is developing. 
I must say frankly that I do not yet know fidly 
today what the outcome of their discu.ssions has 
been. 

Q. You vouhl like to have the Nationalists be 



758 



more receptive to the idea of a cease-fire? 

A. There has been no secret of the fact that the 
United States has hoped for a cease-fire in the 
area. The President made that perfectly clear in 
his message to the Congress. That was last Janu- 
ary when he spoke of what we then thought was 
the most hopeful route of action before the United 
Nations to bring about a cease-fire and the ac- 
ceptance of a principle of the United Nations that 
nations should renounce force to accomplish their 
objectives. There has been some difference of 
viewpoint between the Chinese Nationalists and 
ourselves with respect to that matter, but I am 
not in a position to say to what extent that was 
discussed at Taipei or what the result was, be- 
cause I haven't heard. 

Q. Mr. Secretary, do I understand you correctly 
that it would be possible for its to accept a declara- 
tion from the Chinese Communists as to their will- 
ingness to agree to a cease-fire without participa- 
tion of the Chinese Nationalists in any such 
declaration? 

A. I think the United States would welcome an 
assurance of the abandonment of force by the 
Chinese Communists in whatever way it came. 

Q. Shordd it be made a public statement? 

A. I think it should be public, for unless it was 
made public we would not have the adequate sanc- 
tion of the weight of public opinion behind it. 

Q. Mr. Secretai'y, can you get it down to this: 
Do we consider it our turn now to get in touch with 
the Chinese Communists, or do we consider that 
xoe 7nust hear more fi'om the Chinese Communists 
about this peace conference that Chou En-lai 
originally proposed? 

A. I don't know about this question of whose 
"turn" it is. However, I would say this : '\W\e\\ the 
i.s,sues are as gi'ave as those that confront us in 
the Formosa area, we are not disposed to stand 
upon protocol. 

A proposal has been made which may or may 
not be sincere, which may or may not have any 
s\ibstance to jt. We believe that the circumstances 
under which it was made are apt to give it a 
greater degree of credibility than perhaps if it 
had been made under other circumstances. It was 
made to and in the presence of a very large group 
of other countries, made to them first privately 

Department of State Bulletin 



and then it was made publicly. Therefore, a state- 
ment made under those conditions carries greater 
weight than if, for example, it had been a pure 
propaganda statement issued by Peiping radio 
sometime. 

Now, since a statement was made under those 
circumstances, we are disposed to try to probe it 
further. As to the order of events, if we should 
get a further clarification which would come spon- 
taneously from the Chinese Communists, that 
would be well and good. But we shall not merely 
sit around and wait on that. We may probe the 
thing ourselves to find out if it has any substance. 

As I say, there was an ambiguous phrase about 
their sovereign right to "liberate" Formosa which 
could not be any way impaired. Now, I have said 
previously that we would not expect the parties 
to this struggle, whether the Chinese Nationalists 
or the Chinese Communists, to renounce their am- 
bitions. We don't expect that to be done any 
more than we expect that to happen in the case of 
Germany or Korea or Viet-Nam. But even 
though they retain their ambitions — retain their 
claims — they might renounce the use of force to 
satisfy their claims and their ambitions. Now I 
don't know whether what Chou En-lai said was 
intended to be responsive to what I had previously 
said on that phase of the matter, or not. That is 
one of the things which I think deserves further 
exjiloration. 

Q. Can yow tell us what are the mechanics^ what 
you are doing to find out, what is happening as 
far as our Government is concerned? Mohammed 
All, the Pakistan Premier, this morning reported 
he had a conversation with Chou and that Chou 
En-lai told hiin the door wai still open a crack. 
Also, Chou En-lai told him he felt there was a pos- 
nhility of successful negotiation, or implied that. 
He also said Chou En-lai made to him what he re- 
garded as a reasonable proposition for the settle- 
nent of the present crisis. He didn't give the 
details. Have you asked Mohammed Ali to tell 
'fou what the details are or asked him to give the 
'eaction of the TJ . S. to this conversation? What 
ire we doing? That is what I ivant to know. 

A. I thought I had made clear, in answer to a 
>rior question, that we have not yet done any- 
ihing — that the information which is prerequisite 



to sober, intelligent action is only beginning to 
come in. Only a few minutes ago did we receive 
word through the Pakistan Embassy of what you 
refer to, and we have not yet collected all the 
relevant data. Until we have all the relevant 
data we are not going to go off doing things. 

Q. Mr. Secretary, why should you insist that 
this evidence of sincerity should he made public? 
Would you he satisfied with assurance given 
throtigh diplomatic channels, shall we say, hy 
private diplomacy ? 

A. Well, that is a hypothetical question and I 
wouldn't want to respond categorically to it. But 
it does not seem to me that it is possible to make 
plans on the assumption that there will be a cease- 
fire in the area unless we can let it be known. It 
affects all of our own thinking and all of our own 
planning and the planning of the Chinese Nation- 
alists, and it is quite incredible to me that there 
should be a secret agreement to have a cease-fire. 
I would think it would be quite a problem as to 
how to keep it secret. 



U.S., U.K., and France Prepare 
for Four Power Meeting 

Press release 227 dated April 25 

The Governments of France, the United King- 
dom, and the United States have consistently given 
proof of their desire to seek by negotiation the just 
and peaceful settlement of questions which might 
distui-b the maintenance of enduring peace. 

Moved by the same desire, the three Foreign 
Ministei-s will meet in Paris on INIay 8 in order to 
discuss concrete plans for holding a Four Power 
Conference with the Soviet Government. In 
acordance with usual practice they will also discuss 
this question with the Chancellor of the Gemian 
Federal Republic and Ministers of the other Nato 
governments. 

Experts designated by the three governments 
will meet in London on April 27 to make a prelim- 
inary study of these problems in preparation for 
the Ministers' discussions. 

The three govermnents earnestly hope that a 
Four Power Conference can meet as soon as 
possible. 



yiay 9, 1955 



759 



Social Discontent in the Near East: A Challenge 
to Public Responsibility 

by Stephen P. Dorsey 



The society of the Near East, at the crossroads 
of three continents, lias been shaped and influenced 
by myriad currents over the millennia. Its peo- 
ple vary in many respects from one country to 
another because of differences in their indigenous 
circumstances and in the foreign influences' to 
which they have be^n exposed. Yet they share a 
common experience of centuries of political in- 
stability and economic deficiency. This paper 
will consider the challenge to public responsibility 
posed by social discontent among the peasants and 
working clas.ses of the predominantly Moslem area 
extending from the western border of Egypt to the 
ea.^lern border of Iran. 

The period between the two great World Wars, 
tliat of partition and the mandates, was one in 
which the Near Eastern mind, as reflected in the 
activity of popular leaders, was largely concerned 
with reunification and independence from West- 
ern imperialism, both economic and political. In 
the decade since the Second Great War and the 
establishment of independent political units in 
place of the mandates, the outstanding develop- 
ment may be said to have been the swing of the 
pendulum toward internal social and economic 
problems within the new countries. It is true 
tliat Near Eastern leaders have been occupied in 
Egypt with the control of the Suez Canal and in 
Iran with the major problems of Soviet-inspired 
internal strife — and with the struggle with Israel, 
which has profoundly affected every Arab. 
Armed strife and political unrest, however, are 
nothing new in the Near East. "Wliat is new is 
the beginning of a real response by its leaders to 
the depressed lot of the masses, peasant as well 
as industrial worker, and the growing interest 
in most of the countries in .social legislation and 
economic development as approaches to a solution 
of the growing discontent arising from that con- 
dition. 



The Problem and Its Causes 

As Sa'id B. Himadeh wrote in the Near East 
Journal in 1951, 

The major social problem in the Arab countries of the 
Middle East is poverty, with its normal concomitants 
of malnutrition, poor housing, bad sanitation, and disease. 
It is also the chief social problem in the more developed 
countries, but there are differences in degree, extent, and 
permanence. Poverty in the Arab countries is so extreme 
that it often endangers physical subsistence; it embraces 
a very large proportion of the population ; and for the 
most part it is chronic, not temporary or cyclical as it is 
in the more advanced countries. 

It is extremely difficult to set forth all the basic 
causes of poverty and unrest in the Arab East and 
in Iran, properly weighted in depth, proportion, 
and importance. A brief consideration of some 
of the principal elements, however, is essential, 
for without an appreciation of the causes there 
can be little understanding of the effects or of 
current measures to root them out. 

In the first place, natural resources, with the 
exception of petroleum, are relatively meager. 
Water, which may be used as a source of power 
as well as for irrigation needs, is limited in com- 
parison to the vast stretches of arid land which 
must remain miproductive without this lifespring. 
Moreover, the waste of available water supplies, 
erosion, and salting of cultivable lands contribute 
to the increasing pressure of population. The 
effect is intensified by the illiteracy and immobility 
of labor, and closely related is an outmoded system 
of land tenure which is as wasteful of manpower 
as it is of the soil. 

State domains in some coimtrios are vast, yet 
they are subject to various confusing private and 
tribal claims. Excessive fragmentation and wide 
.reparation of small private holdings have in- 
creased the difficulty of cultivation. Forms of 
share tenancy, growing out of extreme inequality 



760 . 



Department of Slate Bullelin 



of land ownership and a semifeudal tradition, 
bring an inadequate share of income to the tenant. 
Moreover, the insecurity of his tenure and the fact 
that his rent is a fixed share of the product of his 
labor discourage the Near Eastern sharecropper 
from undertaking long-term improvements or 
even from fertilizing the land. Backward meth- 
ods of cultivation, the absence generally of credit, 
except at exorbitant rates, and a lack of farm- 
market transport facilities, added to marketing 
systems which tend to benefit the middleman at 
the expense of the cultivator, contribute to the 
difficulties of the peasant. 

Class Structure 

Another heritage from the past is a rigidly 
stratified class structure separating the small 
minority of landlords from the peasant masses; 
the two groups lack channels through which they 
can communicate concerning the social and eco- 
nomic questions which are vital to the develop- 
ment of the new nations of the Near East and to 
their peoples. Moreover, during the last few 
decades the onset of Western industrialization has 
created a new laboring class — a rudimentary urban 
proletariat — workers drawn from the countryside 
surrounding the factories and from the cities 
where they have been driven by rural unemploy- 
ment caused by increasing population pressures. 
Thus a second social class, or more properly a sub- 
division of the great body of workers, has come 
into being which tends to be more subject to dis- 
content with its own state than are the peasants, 
whose tensions are relieved by traditional rural 
patterns and relationships. The relationship be- 
tween these workers and their superiors is charac- 
terized by the same absence of communication tliat 
exists between landlord and tenant, by the failure 
of the former to supply any positive production 
incentives, and, in spite of certain paternalistic 
benefits, by an inadequate wage scale. Moreover, 
systems of public administration and services have 
tended to be inadequate to deal with the felt needs 
of the people and the growing possibilities for 
development. 

These chronic causes of poverty and unrest 
among both peasants and workers in the Arab 
States have been aggravated by fvirther pressures 
resulting from tlie mass migration of the Palestine 
refugees, who, in a sense, are an exemplification 
of the poverty, underemployment, and discontent 

May 9, 1955 



which permeate the area. Communism is another 
cause of discontent which has been particularly 
significant since World War II, when relations 
between the Near East and the West began to shift 
so greatly. Communist techniques to date, how- 
ever, seem to rely less on any mass movement than 
on the old pattern of a well-trained elite corps. 
Communist influence does not seem to be particu- 
larly strong among either the peasants or the 
laboring classes. It can, however, be seen more 
clearly in the demands advanced in some of the 
industrial and general strikes which occur rather 
frequently in the area than in such agricultural 
disturbances as have occurred. Among both 
farming and laboring groups, Communist influ- 
ence is still small in comparison to that among 
the intelligentsia. 

Because of the factors discussed above, the vast 
majority of Arabs and Iranians live in a relatively 
deprived and frustrated state. Despite recent 
progi'ess, illiteracy runs to at least 70 or 80 percent 
in all of the countries under consideration except 
Lebanon. Annual incomes per family (not per 
capita ) average $200 to $300. Infant mortality is 
exceedingly high. Chronic diseases like tra- 
choma, bilharzia, hookworm, typhoid, and dys- 
entery sap vitality. Population pressures in 
Egypt, Lebanon, and Jordan are among the heavi- 
est in the world at a time when agricultural pro- 
duction per caj^ita, although growing, remains very 
low. In the whole of the Arab world the total 
area under cultivation is about the same as that 
in the State of Iowa. In the Near Eastern coun- 
tries one-third to one acre of land per capita is 
under cultivation. A small percentage of the 
population owns a large percentage of the land; 
in one country, 0.2 percent owns more than half. 
Almost three-quarters of the farm population 
owns no land, or owns plots that are too small 
to pay for themselves. Housing and sanitary 
conditions are for the most part deplorable. 

Manifestations of Social Discontent 

Let us examine the effect that this traditional 
lot has exercised in recent years on the farmers 
and workers, on the one hand, and on the govern- 
ment leaders on the other. The peasants are 
clearly more restless than they were. It has been 
said that, partly because of the impact of Commu- 
nist propaganda, the peasants in many countries 
are being converted from a state of passive misery 



761 



to one of alert and active misery. In thinking 
of this remark one might consider the agricultural 
riots in the Talha, Sharkiya, and Mansura dis- 
tricts of Egj'pt during 1951, in the Homs and 
llama regions of Syria in the same year, and in 
the Erbil and Asmara districts of Iraq in 1953. 

The Talha incident offers one interesting ex- 
ample. The exact facts concerning the riot on 
June 23, 1951, on a 30,000-acre estate in the middle 
Nile Delta region are still obscure and may never 
be fully known. Apparently, an argument over 
an attempt of the general manager of the estate 
to collect more than the nomial amount of wheat 
from a tenant farmer deteriorated into a physical 
brawl. In a comparatively short time several 
thousand peasants gathered and marched on the 
manor house to demand a hearing from the estate 
owner. Tlie owner is reported to have fired a 
gun over their heads in an attempt to disperse 
them and to have accidentally killed tlie captain 
of his guards when the latter stepped forward to 
ask him not to shoot at the crowd. In the ensuing 
riot the manor house was set on fire and 18 peas- 
ants were wounded in a pitched battle with the 
police. The owner hid in the trunk of an auto- 
mobile, which the crowd later dumped into a 
canal, and was only saved by police at the last 
minute. 

This incident of almost 4 years ago cannot be 
described either as "isolated" or as the beginning 
of a widespread movement. It arose from numer- 
ous accumulated causes, some of them peculiar 
to the estate involved ; there was no direct evidence 
of outside incitement or of Communist influence. 
It is significant, however, that the peasants oper- 
ated as a gro>ip rather than in their normal indi- 
vidualistic roles. They were being activelj' rather 
than passively miserable about their age-old un- 
changed lot. This incident, of course, took place 
before the revolution of July 1952 and is in marked 
contrast to the relative quiet in Egypt since that 
date. 

Evidences of restlessness also have increased in 
the industrial labor field in recent years. Two 
striking differences, however, are the much gi-eater 
degi-ee of organization of the industrial workers 
as compared with farm workers and the gi-eater 
influence of communism among the former. 
Strikes gre^itly outnumber peasant riots, and their 
announced aims are much more varied. The gen- 
eral strike in liahrein last year started with dis- 
satisfaction by Shia laborers with working condi- 



tions and later was supported by certain young 
Sumii political elements seeking judicial and leg- 
islative reforms. It was well organized and was 
started and stopped with almost automatic preci- 
sion. The Ar-vmco strike of a j-ear ago origi- 
nally involved protests against the Egyptian Gov- 
ernment's anti-strike attitude, objection to housing 
and wages, and ethnic minority problems. The 
extent of Communist influence in either case is 
difficult to gage. The general strike in Basra last 
spring, however, was an example of Communists 
exploiting the general discontent that existed 
among the workers. 

Several interesting manifestations of labor ob- 
jectives were revealed at a major disturbance at 
a modern textile mill at Kufar-el-Dawar near 
Alexandria on August 12-13, 1952. This uprising, 
in which 10 were killed, was a general one, appar- 
ently not related to any specific incident. The 
complete destruction of the three-room police 
guardhouse at the gate was a direct protest against 
the searching of all workers by plant guards at 
the end of each day. In the personnel office, steel 
filing cabinets containing the records of 10,000 
workers wei"e smashed and burned in the wide- 
spread, though perhaps exaggerated, belief that 
they contained material which would be used 
against individual workers. Twenty-two execu- 
tive automobiles were burned as a symbol of re- 
sentment against the wealthy. The company's 
medical clinic was destroyed, in part because work- 
ei-s believed that it was used not to promote their 
health but rather as a means of dismissing them 
as medically imfit when other reasons for dismissal 
failed. Although the destruction of laboratory 
equipment for testing tensile strengths cannot be 
explained with accuracy, it is known that some 
woi'kers viewed the laboratory as an instrument 
for testing the quality of their individual per- 
formances and consequently resented its existence. 
(After the riot tlie company granted pay increases, 
more holidays, and a pay bonus for the end of the 
year.) 

Public Response to a Challenge 

There is little doubt that a broad and tangible 
effort has been made to meet the challenge which 
social discontent presents. Some of the respon- 
sibility has, of course, been assumed by private 
individuals. On the agricultural side, an out- 
standing example is Hussayn Ibish, who in the 



762 



Department of State Builetin 



last 4 years has turned the title of lands in his 
villages south of Damascus over to the farmers 
who work the land. In Lebanon a group of finan- 
ciers has raised a significant amount of capital for 
a "100-vilIage plan" under which they hope to 
stimulate farm improvement and higher rural 
living standards by means of private loans. As 
to private eiforts in the labor field, it is perfectly 
possible to find private plants in the Near East 
with modern attitudes as well as modern machin- 
ery. Factory clinics, cafeterias, playgroimds, 
vacations with pay, and other mutual benefits to 
labor and industry that took long years to develop 
in our own country are making their appearance 
under private initiative in the Near East, even if 
the pace is not so rapid as could be desired. 

As for the government response to the challenge, 
perhaps the clearest indicators of intent are the 
national budgets. Generally speaking, expendi- 
tures for items relating to social and economic 
development have increased not only on an abso- 
lute basis for the past several years but also, and 
perhaps more significantly, on a basis of percent- 
age of total expenditures. From 20 to 40 percent 
of Arab and Iranian budget expenditures appears 
under ministries of agriculture, social affairs, edu- 
cation, ijublic health, national economy, labor, 
communications, and public works. In most of the 
budgets the percentage for this type of expend- 
iture is higher than that for defense purposes. 
In several of the countries separate development 
or production budgets have recently made their 
appearance again, reflecting in a general way the 
awakening of the legislatures and governments to 
the need for improving the economy and the stand- 
ards of Living. In Iraq 70 percent of the country's 
revenues from oil company operations is by law 
devoted to development purposes. In Iran present 
legislation requii'es that all oil revenues be used 
for economic development. 

The degi-ee to which these expenditm'es directly 
benefit the peasant and working classes naturally 
varies and in most cases could probably be con- 
siderably increased. The amounts involved, how- 
ever, are much higher than ever before and are 
a tangible demonstration that a new concept is 
gaining ground in the Near East, namely, the idea 
that progi-ess can be made through programs of 
general economic improvement based on raising 
the living standards of farmers and industrial 
workers. 



Land Tenure Legislation 

Near Eastern governments probablj' have in- 
troduced more legislation and decrees pertaining 
to land tenure during the last 5 years than during 
the preceding several decades. Moreover, the ob- 
jectives have been greatly broadened so as to fit 
in with overall development, in addition to bene- 
fiting individual peasants by providing improved 
tenancy rights or eventual outright ownership, 
liberal credit, better marketing conditions, and 
teclmical guidance. 

Among the particularly noteworthy legislation 
is the Shah of Iran's decree of 1951 turning a 
quarter of a million acres of royal lands over to 
peasants on liberal credit terms. Another is Iraq's 
"Law for the Development and Cultivation of the 
Dujaila Lands," passed in 1946 and subsequently 
expanded, under which Dujaila and five other 
projects for the settlement of landless peasants 
have been put into effect, with six more in prep- 
aration. A million acres of state lands are being 
prepared for future distribution to landless 
peasants with an opportunity for eventual owner- 
ship. 

Other similar measures include Syria's Decree 
No. 96 regarding the distribution of state lands 
to peasants; Egypt's Law of 1939 for the estab- 
lishment of rural social centers (in which Egypt's 
present Ambassador to the United States, Alimed 
Hussein, and his wife were active) ; and Egypt's 
land reform law of 1952 — one of the earliest laws 
instituted by the present regime. The latter 
limits individual ownership to 200 feddans (207 
acres), provides for compensation to land owners 
and distribution of the excess among peasants, 
and guards against further fragmentation of plots 
mider five feddans. To these measures might be 
added numerous agreements for technical assist- 
ance in the field of land tenure with the United 
States (private foundations as well as the Gov- 
ernment), the United Kingdom, and LTnited 
Nations agencies, particularly the Food and Agri- 
culture Organization, and Unesco. 

In Iran both the U. S. Foreign Operations Ad- 
ministration [Foa] and private foundations have 
used the Shah's land-distribution program as a 
basis for other development projects. They have 
provided technical assistance to the 12 villages 
which were first distributed luider the Shah's pro- 
gram and have demonstrated how, through a sys- 
tem of community development, sui^ervised credit 



May 9, 7955 



763 



and technical aid can create independent farmers 
out of poverty-stricken peasants. To date over 
5,000 farmers have received hinds under tlie hxnd 
distribution progi-ani, and a bank initiated with 
FoA help is serving the needs of the more than 
50,000 families in Crown Land villages. 

The degree to which these and related laws and 
project agreements have been implemented has 
varied considerably. All of them encounter tech- 
nical, financial, psychological, and political ob- 
stacles in the search for an improved substitute 
for the old system. Nevertheless, they reflect an 
unprecedented effort on the part of current Near 
Eastern leaders to give the mass of peasants better 
leases on their lands and on their lives. 

Labor Measures 

Basic labor legislation is not quite so new or 
dramatic as are land reform measures in the Near 
East. The labor codes of Lebanon, Syria, and 
Iran were enacted in 1940 ; Iraq's code underwent 
important revisions that same year ; and the Saudi 
decree for hours, age limits, and disability com- 
pensation was issued in 1947. 

The interest of the Arab States in the Interna- 
tional Labor Organization [Ilo] has been a 
stimulus to measures which meet the challenge 
of labor unrest. Lebanon, Iraq, Syria, Iran, and 
Egj'pt are all members; Egypt holds an assistant 
director generalship. In addition to participating 
in Ilo projects, several of the states are engaged 
in technical assistance projects with Foa in such 
fields as statistics, worker education and voca- 
tional training, industrial safety, and arbitration 
methods. Although improved laws regarding 
strikes, unionization, and other aspects of labor 
are clearly needed, generally sjxiaking the greatest 
need in mo.st Near Eastern countries is for im- 
proved implementation of existing legislation, 
through the Ministries of Labor or Social Affairs 
which have been created recently by several 
countries. 

The one Near Eastern counti-y which has 
recently introduced rather sweeping labor legis- 
lation is Egypt. The Egyptian Trade Union Act 
of 1942 expressly excluded the unionization of 
agricultural workers and also prohibited individ- 
ual workers' unions from joining a single national 
federation. These situations were reversed by the 
new government in December 1952, less than 6 
months after it took office. As a result of the new 



decrees, more than GO groups of agricultural 
workers have applied for union charters and the 
establishment of a general confederation of unions 
is receiving serious study. The latter move might 
enable Egypt's more responsible and effective labor 
officials to lead poorly organized unions into effec- 
tive operation. 

Egypt's labor legislation presents one problem 
which has not been resolved : it prohibits the dis- 
missal of an employee, if he chooses to appeal, 
without permission from the courts. This provi- 
sion is of particular concern to foreign investors; 
it also is a potential financial and administrative 
burden on all firms, especially those in seasonal 
manufacturing. The Egyptian Government has 
been described by some observers as prolabor but 
not antibusiness, and the trend is toward a modi- 
fication of this legislation. Egypt is gaining ex- 
perience daily in the field of industrial relations, 
and it has clearly accepted the challenge of labor 
unrest and the conditions underlying it. 

Major Development Projects 

In recent years and months Near Eastern 
leaders have spent less time pointing to rivers 
and ports that should be developed and more time 
looking over plans on which cost estimates can 
be based, firms hired, and money appropriated or 
borrowed. A recent bulletin issued bj- L^nrwa, 
the U.N. relief agency for Palestine refugees, 
devotes 145 pages to an inventory of major eco- 
nomic development programs (underway) and 
projects (for the future). 

Iran has practically completed plans calling for 
the expenditure of $700 million for economic de- 
velopment. Although these figures may at first 
glance appear fantastically high, they are actually 
well within Iran's financial ability, based on its 
potential oil income. This income will reach $180 
million annually by the end of 1957, and, as stated 
above, Iranian legislation requires that all of it 
be devoted to economic development. 

The Lebanese Government has just invited se- 
lected firms to bid on the engineering plans and 
supervisory contract for the first phase of the 
Litaiii River Basin project; preparatory work for 
this phase was done by a 24-man team financed 
by Foa. Well over $100 million is contemplated 
as the eventual expenditure on this self-liquidat- 
ing power and irrigation project. 

Some of the world's greatest engineers have re- 



764 



Department of Stale Bulletin 



cently pronounced Egypt's High Aswan Dam 
project feasible. Exijenditures over the next 
decade may exceed half a billion dollars for the 
largest dam and reservoir in the world. The proj- 
ect, as conceived, would increase Egypt's acreage 
by at least one-fourth and probably more. 
Unkvva engineers have recently completed a study 
under which sweet water from the Nile will be 
siphoned under the Suez Canal and used to irri- 
gate Sinai lands which can support more than 
50,000 refugees. The Unified Plan for the De- 
velopment of the Jordan Valley is not yet adopted 
and still faces important obstacles. The value 
of crop production in the valley could conceivably 
increase tenfold in less than a decade if all goes 
well. 

Syria is developing the Port of Latakia with 
; its own finances and is well advanced in the engi- 
neering of its Ghab Swamp irrigation and drain- 
age projects, among others. Iraq's Wadi 
Tharthar flood control project on the Tigris is 
expected to be completed next year. Other im- 
portant development projects in the Near East 
include the improvement of transportation and 
communication between urban and rural districts 
and the construction of research laboratories and 
extension stations. 

Development boards have been established in 
recent years in Iraq, Jordan, Lebanon, and Egypt, 
and one has been in existence in Iran for years. 
In several of these countries, the boards are con- 
sidering investment and development surveys 
made by the International Bank for Reconstruc- 
tion and Development (Ibrd). Iran has received 
substantial U. S. economic aid for several years, 
and in Egypt, Jordan, and Lebanon, U.S. eco- 
nomic aid programs over and above technical 
assistance have been inaugurated in the last few 
months with a U.S. contribution of $59 million.^ 
Those who dismissed such projects as unrealizable 
dreams 10 years ago must now take account not 
only of the tremendously augmented oil revenues, 
the availability of U.S. and Ibrd funds, and the 
increased file of completed blueprints, but also the 
desire of the Near Eastern leaders to avail them- 
selves of these new factors as a means of reducing 
the unrest and attaining stability. Granted that 
i( is only a beginning, it is an answer to a challenge. 
It is significant that a new word is on the tongues 



' For a summary of U.S. technical and economic assist- 
ance programs in tlie area, see Bulletin of Feb. 28, 1955, 
p. 344. 

May 9, 7955 

342057—55 3 



of Near Eastern engineers and officials — "sched- 
uling" — that is, the synchronization of many 
phases of land reclamation, resettlement, and other 
projects toward the proper culmination of the 
program. 

International Cooperation in Teciinical Assistance 

Although the major development projects in- 
volve external financial and planning assistance, 
the recent growth of international cooperation as 
a means of improving the welfare of peasant and 
worker is more widely revealed in the field of 
technical assistance. Well over a million dollars a 
year is being spent in the Arab countries and Iran 
by the U.N. specialized agencies for regional meet- 
ings and for individual advisory projects in fields 
covered by the World Health Organization, the 
International Labor Organization, the Food and 
Agriculture Organization, and Unesco. The eco- 
nomic studies and recommendations made in Syria 
and Iraq by Ibrd paid considerable attention to 
the social aspects of agriculture and industry, and 
tliis is likely to be the case in the bank's forthcom- 
ing survey of Jordan. U.S. teciinical assistance 
programs, now in their fifth year, will involve 
U.S. expenditures in excess of $22 million in the 
current fiscal year in five Arab countries and Iran. 
While the proportion of projects with direct and 
early benefits to peasants and workers is difficult 
to calculate precisely, many of the projects testify 
to the growing cooperation between Near Eastern 
leaders and international and foreign technical 
assistance organizations in the interests of resource 
development and the popular welfare. 

Education, Public Health, and Public Adminis- 
tration 

The desire for improved education and broader 
opportunities is hardl}' new in the Near East. It 
has been more than a thousand years since Al- 
Ashar University was founded at Cairo. It was 
almost 20 years ago that the Government of Iraq 
oli'ered teaching positions to every member of the 
graduating class of the College of Arts and 
Sciences at the American University of Beirut — 
at starting salaries higher than in most other pro- 
fessions. The last decade, however, has brought 
the broadest and most concerted effort, coincident 
with the attaimnent of political independence of 
most of the countries under discussion. In Leba- 



765 



non, for example, 100 Government primary schools 
were established in the 21 yeiii-s between World 
Wars I and II, whereas more than 700 such schools 
have been established since the end of World 
War II. Moreover, action on the need for voca- 
tional training has increased gi'eatly, as is shown 
particularly by the numerous requests for technical 
assistance in this field. 

Near Eastern govermuents have also taken steps 
toward the establishment of public-health and 
public-adininistration practices w'hich will be of 
tangible benefit to the people as a whole. Surface 
evidence of tliis is to be found in recent regional 
conferences on both topics held at Beirut; in the 
enrollment of students from throughout the area 
in the public-health and public-administration 
schools established at tl\e American Univei-sity of 
Beirut in 1951 ; in the percentage of the more than 
2,000 Iranian and Arab students now in the United 
States who are studying public health and admin- 
istration; and in the numerous demonstration 
projects and special studies under teclinical as- 
sistance programs in these fields. The new em- 
piiasis on enviromnental sanitation measures such 
as drainage and malaria control, as well as the 
clinical work in rural social centers, reflect the 
grassroots approach. How effective it has been 
to date is a less important question than how effec- 
tive it will be after a little more tune has elapsed 
and the infinite problems of training and tradition 
have been more fully dealt with. 

Sum Total of Response 

We liave considered the problem of social dis- 
content among the peasant working classes of the 
Near East and its causes, as well as examples of 
its recent manifestations. In conclusion one must 
ask whether the sum total of the public response 
to the challenge of social discontent is effective. 

Obviously such discontent long since stimulated 
the assumption of responsibility by some Near 
Eastern leaders, but the need is now recognized 
by increasing numbers. Although the extent to 
which the causes of unrest have been reduced is 
open to question, certainly effective approaches to 
a solution of these causes now occupy the thoughts 
and energies of a significant number of the area's 
leaders. In my opinion they have walked a rough 
and circuitous path, but they have come upon the 
right road. The distance behind them on that 
road must be measured in rods while the distance 

766 



ahead is a matter of miles. The important thing, 
however, is that they are on it in force and with 
growing energy to finish the race. I am glad that 
there are Western way stations, both private and 
public, where the helping hands of free men will 
be extended to help them. 

Much remains to be done to meet the needs of 
the people of the Near East, but already great and 
encouraging steps have been taken. A new wind 
is blowing, and if, as a result of progressive meas- 
ui'es by their own countrymen, the average peas- 
ant and worker can continue to find new hope, it 
seems certain that they will not turn to the Krem- 
lin for a solution to their problems. 

• Mr. Dorsey, author of the above article, u 
Deputy Director of the Office of Near Eastern 
Affairs. His article is hased on an address de- 
livered at the Ninth Annual Conference of the 
Middle East Institute at Washington, D.C., on 
March 6. 



Germans Present Collection 
of Contemporary Drawings 

Press release 222 dated April 22 

Department Announcement 

On April 22 Georg Federer, Counselor to the 
German Diplomatic Mission, presented to John F. 
Simmons, Chief of Protocol of the Department of 
State, a collection of 64 drawings by contemporary 
German artists. The collection supplements the 
previous presentation of a statue of "Laboring 
Youth" made on January 25 to President Eisen- 
hower by the Chief of the Gemian Diplomatic 
Mission, Ambassador Heinz L. Krekeler.' The 
statue as well as the collection is part of a general 
presentation of gifts which is intended to express 
the gratitude of the German people to the Ameri- 
can people for the aid rendered in the years of 
distress following World War II. 

Letter From President Heuss 

In making this presentation, Mr. Federer 
handed to Mr. Simmons the following letter from 
the President of the Federal Eepublic of Ger- 
many : 



' Bulletin of Feb. 7, 1955, p. 221. 

Department of State Bulletin 



Bonn, May 105i 

During the years of our bitterest need countless men 
and women in countries near and far sent from the kind- 
ness of their hearts innumerable gifts of food and cloth- 
ing to Germany. These acts of brotherly love saved the 
lives of many Germans and helped the exhausted and the 
despairing to gather fresh courage. 

Since that time, we Germans have a great debt of 
gratitude. For years the German people have received 
gifts from others; today we ourselves should like to be 
the bearers of a modest gift. 

Our gratitude is expressed through works of art which 
were created by contemporary German artists, many of 
whom are themselves living in distressed circumstances. 
The money for the purchase of these works of art was 
raised by millions of Germans, some of whom have them- 
selves experienced the active help of unknown men and 
women of other nations, and all of whom are deeply aware 
of the great debt of gratitude which the German people 
owe to men and women all over the world. 

Our gifts are only a symbol of this gratitude. They 
are being sent to thousands of church and welfare organ- 
izations which were the mediators and bearers of kindness 
and brotherliness. Through these gifts grateful Germans 
are seeking to reach every one of the unknown bene- 
factors in thirty nations, asking them to accept these 
tokens as a sign of a heartfelt and permanent gratitude 
from one human being to another. It is our desire to 
express to these unknown benefactors the conviction that 
fills our hearts and minds — that after years of need and 
distress no one has greater reason for gratitude than 
the German people. 

Theodoe Heuss 
Federal President 

Architects Visit Berlin To Plan 
international Building Exhibit 

The Department of State announced on April 18 
(press release 213) that the U.S. Government has 
accepted a recent invitation from the Govenmient 
of the city of Berlin to participate, along with a 
number of other governments, in an international 
building exhibit to be held at Berlin in September 
1956. 

At the request of the Department of State, the 
American Institute of Architects has appointed a 
committee to consider the form of the U.S. partici- 
pation. A group of four architects has left 
for Germany for discussions with the exhibit 
director and with government officials at Bonn 
and Berlin. They will study the exhibit plans 
and, on the basis of their study, make an appro- 



priate recommendation for U.S. participation. 
Following are the members of the group travel- 
ing to Germany : Ralph Walker, New York, N. Y., 
chairman ; Hugh A. Stubbins, Cambridge, Mass. ; 
Howard Eichenbaum, Little Rock, Ark.; and 
Moreland G. Smith, Montgomery, Ala. 

Commodities Agreement With Spain 

Press release 219 dated April 20 

United States Ambassador John Davis Lodge 
and the Spanish Foreign Minister, Alberto 
Martin Artajo, signed an agreement in Madrid on 
April 20 for the sale of surplus agricultural com- 
modities valued at approximately $21 million. 
The program of the sale of these commodities was 
developed pursuant to Title I of the Agricultural 
Trade Development and Assistance Act (Public 
Law 480, 83d Congress). 

Payment for the commodities will be made in 
Spanish pesetas. A portion of the pesetas accruing 
under the program will be used to meet United 
States Government expenses in Spain. The re- 
mainder will be loaned to the Spanish Govern- 
ment for development purposes. 

U.S. Signs Agreement With Argentina 
for Sale of Surplus Cottonseed Oil 

Press release 228 dated April 25 

The United States and the Argentine Republic 
on April 25 signed an agreement authorizing the 
sale to Argentina, tlirough private American trad- 
ers, of 20,000 metric tons of surplus cottonseed oil. 
Unfavorable crop conditions caused by drought 
have reduced the availability of edible oils in Ar- 
gentina below the level required for domestic con- 
sumption. The total value of this transaction, 
which is being made under the authority and pro- 
visions of the Agricultural Trade Development 
and Assistance Act (Public Law 480, 83d Con- 
gress) , is estimated at $5.8 million. 

The agreement was signed on behalf of the Ar- 
gentine Republic by Dr. Gabriel Galvez, Charge 
d'Affaires of the Argentine Embassy in Washing- 
ton, and on behalf of the United States by Sam- 
uel C. Waugh, Assistant Secretary of State for 
Economic Affairs. 



May 9, 7955 



767 



Looking Ahead With the United Nations 



hy David McK. Key 

Assistant Secretary for International Organization Affairs ' 



This gathering affords a good occasion for re- 
viewing the past and looking into the future of 
the United Nations. 

About 2 months from now there will take place 
a 7-day commemoration in San Francisco, the 
birthplace of the United Nations, marking the 
10th anniversary of the signing of the charter. 
There will be a series of meetings giving members 
of the United Nations the opportunity to review 
the accomplishments of the organization. The 
city of San Francisco has graciously invited the 
United Nations to make the city its home on this 
auspicious anniversary. The General Assembly 
unanimously accepted the invitation last Decem- 
ber and the Secretariat of the United Nations is 
in the process of making the necessary arrange- 
ments. The United States will participate in 
these sessions with a delegation headed by the 
Secretary of State and Ambassador Henry Cabot 
Lodge, Jr. 

In looking toward this significant gathering, we 
are mindful of the important role played by the 
nongovernmental organizations in consulting with 
our delegation when the United Nations was 
founded at San Francisco 10 years ago. I am 
glad to say that appropriate arrangements are 
being made by the United Nations Secretariat for 
representatives of nongovernmental organizations 
to cooperate in making these ceremonies as widely 
representative as possible. 

The meetings to be held in the historic San 
Francisco Opera House will mark a milestone 
in the progress of the United Nations since its 
founding. In spite of the inherent difficulties in 



' Address made before the American Association for the 
United Nations, New Jersey Branch, Trenton, N. J., on 
Apr. 15 (press release 208 dated Apr. 14). 



erecting a sound and practical structure from the 
blueprint of the United Nations Charter, and in 
the face of international problems unforeseen 
when the charter was written, a firm edifice has 
been raised. 

After 10 years the growth and continued vi- 
tality of the United Nations has justified the faith 
of its founders. 

One of the major unforeseen factors facing the 
United Nations in its early years was mankind's 
entry into the age of atomic energy. Between 
the time that the charter was signed in San Fran- 
cisco in June 1945 and its coming into force 4 
months later in October, man firet experienced the 
destructive capabilities of this new power. In 
the ensuing 10 years the United Nations has been 
confronted with the increasingly urgent rliallence 
of harnessing this force for the welfare of civiliza- 
tion instead of seeing it turned toward destructive 
purposes. 

The United Nations has accepted this challenge 
and is devising ways to meet it. Firm strides are 
being taken toward establishing an international 
agency under the auspices of the United Nations 
for the peaceful uses of atomic energj'. In addi- 
tion, an international conference of nuclear ex- 
perts will meet in Geneva in August of this year 
to exchange information on how the benefits of 
the atom can be brought to mankind. On the con- 
trol side, the United Nations continues to grapple 
with the problem of safeguarded disarmament and 
elimination of nuclear energy as an instrument of 
destruction. Ambassador Wadsworth, who was 
also to have addressed you today, is prevented 
from doing so because he is at present representing 
the United States at the meetings of the Disarma- 
ment Subcommittee in London. 

As we look at the United Nations in the perspec- 



768 



Department of State Bulletin 



tive of 10 years, there should be taken into account 
certain differences which exist between the organ- 
ization as envisaged in the charter and the actual 
organization as it exists today based on practical 
experience. Thousands of men and women, de- 
voted to peace, have labored over the past decade 
to translate the charter blueprint into concrete 
terms. In the process they have found that ad- 
justments had to be made along the way to fit the 
materials with which they had to work and the 
nature of the terrain on which they had to build. 

As a result the United Nations has developed 
in ways different from what its founders origi- 
nally intended. Had the charter itself been a 
rigid document, the peace-loving countries would 
indeed have been faced with insurmountable ob- 
stacles. Fortunately, the charter has been elastic 
■ enough to permit a variety of new approaches to 
unforeseen difficulties. We now have a functional 
and vital striicture which has stood the test of 
perilous times and has demonstrated capacity for 
continued growth. 

I would like to discuss with you today some of 
the resourceful ways in which the free nations 
have met severe postwar problems within the 
framework of the charter. 

The most crucial test which the United Nations 
had to meet was the brutal surprise attack by the 
Communists against the Eepublic of Korea in 
1950. This shocked the United Nations members 
into an improvised but successful defense of that 
embattled Eepublic. We are all familiar with this 
important page in the history of the United Na- 
tions. Although the cost was high in blood and 
wealth, this action stamped the United Nations 
as an organization ready and willing to meet both 
moral and militaiy challenges. 

In Korea, the United Nations was responding to 
a direct and overt challenge of Communist aggres- 
sion which was clear to all. However, the free 
world has also had to contend with other efforts of 
world communism to undermine non-Communist 
' peoples and governments. Nevertheless, means 
have been found to counteract all of these efforts 
and to create conditions which will discourage or 
deter aggression of any kind. 

Regional Organizations 

The United Nations has played an important 
role in this process thanks to the flexibility pos- 
sible under its charter. There have emerged dur- 

May 9, J 955 



ing the past 10 years a variety of regional organ- 
izations, specialized agencies, and multilateral 
arrangements, designed to achieve the fundamen- 
tal objectives of the charter — peace, security, and 
well-being. 

We might first consider the regional organiza- 
tions which have been established for collective 
defense. These might not have been necessary had 
the major powers been able to cooperate in estab- 
lishing a United Nations force to keep the peace 
and put down aggression. However, as you know, 
the Soviet Union early demonstrated its unwill- 
ingness to develop a United Nations which could 
deter or suppress aggression. While continuing 
its obstruction in the Military Staff Committee 
discussions in the first years of the United Nations, 
the U.S.S.R. threatened and supported aggres- 
sion, fomented subversion, and shackled tightly 
its Eastern European satellites. This presented 
the United States and other members of the free 
world with a situation which seriously threatened 
their security. To meet this menace the North 
Atlantic Treaty Organization was formed as a 
collective defense arrangement of the type per- 
mitted under the cliarter. 

Nato has made an effective contribution to the 
objectives of the United Nations by discouraging 
aggression and fostering conditions of security 
which lessen international tensions. Now that 
ratification of the agreements bringing the West- 
ern European Union into effect seems assured, 
an additional powerful deterrent to Communist 
expansion on the continent of Europe will shortly 
be in existence. The bitter Soviet opposition and 
its desperate and continuing maneuvers to frus- 
trate European unity emphasize the importance 
of this development as a safeguard against Soviet 
expansionist policies. 

Nato and the Western European Union have 
come into being in response to unexpected con- 
ditions arising from the so-called "cold war." 
Such arrangements are, however, not the first of 
their kind. An arrangement of the kind referred 
to in article 52 of the charter already existed in 
our own hemisphere prior to the birth of the 
United Nations. This article reads : "Nothing in 
the present Charter precludes the existence of 
regional arrangements or agencies for dealing 
with such matters relating to the maintenance 
of international peace and security as are appro- 
priate for regional action. . . ." I refer, of course, 

769 



to the Organization of American States, -which 
for many years has promoted the collective de- 
fense and mutual security of the American 
Hemisphere. 

I cite this example for those -who may fear 
that defensive regional organizations diminish 
the authority of the United Nations or are an in- 
dication of ineffectiveness. On the contrary, the 
charter makes clear that the United Nations looks 
first to such agencies and arrangements to assist 
in keeping the peace among nations. The charter 
provides, for example, that the state members 
of regional arrangements or agencies ". . . shall 
make every effort to achieve pacific settlement of 
local disputes" through these agencies before re- 
ferring them to the Security Council. The char- 
ter also provides that the Security Council shall 
encourage such settlements. Several potentially 
dangerous disputes between American States have 
been satisfactorily resolved by the action of the 
Oas. The most recent instance— just a few months 
ago — was the speedy and resourceful action in- 
volving Costa Rica. 

The Manila Pact, the most recently consum- 
mated regional arrangement entered into by the 
United States, was developed in response to a 
clear and present danger to the interests and se- 
curity of the Southeast Asia area. It serves as a 
warning to potential aggressors. It is also notice 
that the parties to the pact will resist if attacked 
and that they intend to develop their own way of 
life without foreign interference. Such arrange- 
ments serve as a bulwark of strength to the United 
Nations. 

These collective defense agencies are primarily 
concerned with meeting the threat of actual physi- 
cal aggression. But grim experience since the 
founding of the United Nations has taught us 
that we must be prepared against another and 
more insidious type of aggression. This is aggres- 
sion by subversion or infiltration— a technique 
which the Communists have repeatedly used. We 
have witnessed its tragic results in a country like 
Czechoslovakia, where communism has been sad- 
dled on the people against their will but without 
any act of overt aggression. We have seen its 
serious threat to a country like Greece, where only 
prompt action by the United Nations and by the 
United States, coupled with the heroic efforts of 
the Greeks themselves, stamped out the danger. 

Both the Organization of American States and 
the Manila Pact countries have recognized the 

770 



existence of this dangerous Communist tactic. 
The Declaration of Caracas calls for the Ameri- 
can Republics to consult together and take appro- 
priate action against domination or control by 
international communism of the political insti- 
tutions of any of the American Republics. It 
also calls for other measures to counteract the 
extension of Communist influence in this hemis- 
phere. The Manila Pact affirms the same pur- 
poses. These declarations are clear evidence of 
the will of the free nations to deter aggression by 
subversion. 

Economic Cooperation 

Let me now turn to a different type of regional 
arrangement which has a related purpose : namely, 
to attack the root causes of insecurity and unrest 
by cooperation in the economic sphere. These 
arrangements have developed both within and out- 
side of the United Nations system and have com- 
plemented one another. The charter contemplates 
both types of cooperation. 

Within the United Nations there have come into 
being under the Economic and Social Council the 
Economic Commissions for Europe, for Latin 
America, and for Asia and the Far East. It is the 
task of these Commissions to study the facts and 
recommend means by which trade, industry, and 
agriculture may be stimulated to raise standards 
of living and create conditions of well-being 
"which are necessary for peaceful and friendly 
relations among nations." It is important to note 
that these Commissions are not intended to engage 
in action programs. They have an essential fimc- 
tion to perform, however, in determining facts on 
which action may be taken. 

Outside the United Nations, I might cite the 
Organization for European Economic Coopera- 
tion, which was founded in 1947 to provide the 
initiative necessary to hasten European recovery. 
Ever since that time this Organization has stimu- 
lated and implemented vital economic cooperation 
within the European community. Without this 
assistance, the political and security objectives of 
Nato would have been jeopardized. In the Far 
East also the United States technical aid pro- 
grams have fostered economic progress and sta- 
bility. President Eisenhower announced the 
other day that he will advise the Congress next 
week that "the United States is ready to intensify 
its cooperation with the free nations of South 

Department of State Bulletin 



and East Asia in their efforts to achieve economic 
development and a rising standard of living." 
We are not alone in bringing assistance to this 
crucial area. The United Kingdom initiated the 
Colombo Plan, under vrhich nations of the area are 
assisting each other in raising standards of liv- 
ing and giving a positive answer to the bogus 
promises of the Communists. 

If, as Ambassador Lodge has said, regional de- 
fense organizations have been created as a reac- 
tion to Communist action, it might be said that 
regional economic cooperation has developed as 
a reaction to the economic and social realities of 
the modern vrorld. The United Nations Eco- 
nomic Commissions and the voluntary technical 
and economic assistance programs both vrithin and 
outside of the United Xations system are helping 
to alleviate the causes of international tension, 
and in so doing are making a major contribution 
to the objectives of the charter. 

Specialized Agencies 

Eelated to the progressive development of re- 
gional aspects of international cooperation are the 
activities undertaken by the specialized agencies 
of the United Xations over the past decade. As 
you know, the United Xations Charter did not 
actually establish any of these agencies. They 
came into being by intergovernmental agreement 
and were brought into relationship with the 
United Xations through the Economic and Social 
Council as contemplated by the charter. 

There are now 10 of these specialized agencies 
in existence. Many governments have vigorously 
supported the work of the specialized agencies. 
As a result, we now have an interrelated system 
of specialized agencies in economic, social, cul- 
tural, educational, health, and technical fields. 
The work of these agencies supplements the eco- 
nomic and social development programs of the 
United Xations and promotes both economic and 
political stability. This work is not always of a 

[j; dramatic nature and therefore may not attract 
immediate, wide popular notice. These agencies 
have a record of enduring and far-reaching ac- 
complishments. 

"We in the United States have encouraged the 
founding and development of the specialized 

bH agencies. As a people we have a deep faith in 
the concept of helping others to help themselves. 
We believe in the sharing of knowledge as a proc- 

May 9, 1955 



ess which helps both the giver and the receiver. 
As a government we have a background of ex- 
perience in the techniques of bilateral and multi- 
lateral cooperation in economic, technical, and cul- 
tural fields. We have had confidence that great 
benefits would accrue to all participating nations 
if such programs could also be carried out on a 
permanent, genuinely cooperative basis, imder the 
aegis of the United X'^ations. From the beginning 
we have supported these programs in generous 
measure. 

Our confidence has not been misplaced. Each 
year has seen greater participation by both mem- 
bers and nonmembers of the United Xations — 
both in financial support to the various agencies 
themselves and in contributions in local currencies 
by countries wliich are the beneficiaries of United 
Xations technical assistance programs. 

What can this type of cooperation mean to the 
well-being and therefore the basic security and 
stability of the world community? Let me il- 
lustrate by reference to one important area. It is 
a heartening fact that today the food production 
situation in free Asia is better than at any time 
in the past 50 years. The advance in production 
of food has been dramatic. This advance is due 
in large part to the contributions made by the 
United Xations, by the Food and Agriculture 
Organization, and by United States technical aid 
to agricultural programs in the area. 

This improvement in the food supply provides 
a sound foundation on which an industrial ad- 
vance can be established. This occurs at the very 
time when the ruthless leaders of communism 
have been forced to admit widespread failures of 
food and agricultural production under their sys- 
tem. The vast area of free Asia and the South- 
west Pacific has living within it approximately 
766 million people — nearly one-half of the free- 
world population or approximately one-third of 
the whole world population. Yet they have today 
a total gross product valued at about $75 billion, 
or less than 10 percent of the world total. If 
peace, or a reasonable degree of peace, continues 
in the world, a 30 percent advance in the gross 
product of this vast area appears attainable within 
the next 8 years, bringing with it a definite im- 
provement in the conditions of living of the people 
and a significant added economic strength. The 
annual gross product for the region might then 
be up in the range of $100 billion per year. 

The sohd and heartening progress I have just 



771 



cited is the result of various types of cooperative 
endeavor: bilateral United States mutual as- 
sistance, private enterprise development, the work 
of the United Nations specialized agencies, volun- 
tary programs such as the United Nations Chil- 
dren's Fund and Expanded Technical Aid, and 
voluntary regional associations exemplified by the 
Colombo Plan. These various activities are com- 
plementary, not competitive. Thi'ough them the 
practice of cooperation for mutual benefit has be- 
come a new dimension in international relations. 

Need for Increased Public Understanding 

In closing, I should like to say a few additional 
words about the United Nations in the perspective 
of the past as well as of the future. The United 
Nations is a vital and therefore a growing and 
changing organization. It has demonstrated 
strong staying power, and it has attracted a broad 
and loyal following among both the nations and 
peoples of the world. There is every prospect 
that it will continue along this path, reflecting at 
any given stage the wisdom, the progress, or the 
imperfections of man. 

I think we can agi'ee here that the United Na- 
tions approaches its 10th anniversary with a good 
record of accomplislmient and progress. The 
United Nations is not a perfect instrument and 
can never bring the millennium. It does, how- 
ever, provide us with a basis for collective security. 
It has an important peacemaking role. It gives 
us a forum for United States views. It enables 
us to lay bare the Communist record before the 
bar of world opinion. It is attacking the root 
causes of war by helping to improve economic and 
social conditions. It has demonstrated flexibility 
in a period of unprecedented difficulties in inter- 
national relations. It has exercised a moderating 
influence on the divisive forces of the cold war. 
It presents us with valuable opportunities to 
demonstrate, both by words and deeds, the basic 
identity of interests between ourselves and other 
peoples of the world. 

Each member nation has a legitimate right to 
ask whether the United Nations serves its national 
interests. I believe that you who understand the 
United Nations will agree with me that it does 
serve United States interests — and it serves them 
well. 

I would say to you as participants in this pro- 
gram that an essential element to the continuation 

772 



and expansion of the wide public support which 
the United Nations enjoys in this country is under- 
standing of the basic character of the organiza- 
tion — an understanding of its purposes, its capa- 
bilities, and its limitations. Only with such 
knowledge can we fairly and constructively judge 
its record. In the words of Secretary Dulles, 
"Those who know the United Nations best are 
those who have the highest opinion of it, and the 
few who disparage the United Nations are, in the 
main, people who know nothing about it at all." 

I strongly urge that we lose no opportunity to 
increase public understanding and knowledge of 
the activities of the United Nations. This will 
insure the full measure of support so essential 
to the continued vitality and effectiveness of this 
gi-eat organization. 



Current U.N. Documents: 
A Selected Bibliography^ 



General Assembly 

Ckjmplaint of Detention and Imprisonment of United 
Nations llilitary Personnel In Violation of the Korean 
Armistice Agreement. Exchange of cablegrams be- 
tween the Secretary-General of the United Nations and 
the Prime Minister of the State Council and Minister 
for Foreign Affairs of the People's Republic of China. 
A/2SSS, December 17, 1954. 2 pp. mimeo. 

Complaint of Detention and Imprisonment of United 
Nations Military Personnel in Violation of the Korean 
Armistice Agreement. Cablegram dated 17 December 
1954 addressed to the Secretary-General by the Minister 
for Foreign Affairs of the People's Republic of China. 
A/28S9, December 17, 1954. 2 pp. mimeo. 

Information from Xon-Self-Governiug Territories : Sum- 
mary and Analysis of Information Transmitted under 
Article 73 e of the Charter. Report of the Secretary- 
General. Summary of information transmitted by the 
Government of New Zealand. A/2S93, January 27, 
1955. 21 pp. mimeo. 

Information from Non-Self -Governing Territories: Sum- 
mary and Analysis of Information Transmitted under 
Article 73 e of the Charter. Report of the Secretary- 
General. Summary of General Trends in Territories 
under United Kingdom Administration. A/2894, Feb- 
rimry 3, 1955. 34 pp. mimeo. 

Information from Non-Self-Governing Territories: Sum- 
mary and Analysis of Information Transmitted under 
Article 73 e of the Charter. Report of the Secretary- 
General. Review of general ti'ends in the Territories 
administered by France. A/2892, February 24, Uoo. 
38 pp. mimeo. 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia 
University Press, 2960 Broadway, New Yorlj 27, N. Y. 
Other materials (mimeographed or processed documents) 
may be consulted at certain designated libraries in the 
United States. 

Department of State Bulletin 



United Nations Conciliation Commission for Palestine. 
Fourteenth Progress Report. (For the period from 
31 Detember 1953 to 31 December 1954). A/2897, 
March 3, 1955. 6 pp. mimeo. 

Special Committee on Review of Administrative Tribunal 
Judgments. Judicial Review of Administrative Tribu- 
nal Judgments. Working Paper Submitted by the 
Secretary-General. A/AC.78/L.1, March 22, 1955. 32 
pp. mimeo. 

Information from Non-Self-Governing Territories : Sum- 
mary and Analysis of information transmitted under 
Article 73 e of the Charter. Report of the Secretary- 
General. Summary of General Trends in Territories 
under the Administration of the United States of 
America. A/2895, March 29, 1955. 10 pp. mimeo. 

Economic and Social Council 

Full Employment. Implementation of Full Employment 
and Balance of Payments Policies. Replies of govern- 
ments to the questionnaire on full employment, the 
balance of payments, and economic trends, objectives 
and policies in 1953 and 1954, submitted under resolu- 
tion 520 B ( VI ) of the General Assembly and resolutions 
221E (IX), 290 (XI) and371B (XIII) of the Economic 
and Social Council. Union of Soviet Socialist Republics. 
E/2565/Add.l4, December 28, 1954. 68 pp. mimeo. 

Commission on the Status of Women. The Position of 
Women and Girls as Regards Apprenticeship. Report 
prepared by the International Labour Office. E/CN.6/ 
264, January 7, 19.55. 49 pp. mimeo. 

Commission on Narcotic Druss. Protocol for Limiting 
and Regulating the Cultivation of the Poppy Plant, the 
Production of. International and Wholesale Trade in, 
and Use of Opium. Draft of a Model Code and Com- 
mentary for the Application of the Protocol (E/CN.7/ 
275/Add.l) Observations of Governments represented 
on the Commission. E/CN. 7/287, undated. 18 pp. 
mimeo. 

Commission on the Status of Women. Comments of Gov- 
ernments on the Text of the Draft Convention on Na- 
tionality of Married Women. Report by the Secretary- 
General. E/CN.6/259, January 21, 1955. 20 pp. mimeo. 



THE CONGRESS 



Publication of Yalta Papers 

Statement hy Secretary Dulles ^ 

Let me say at the start that I believe that it was 
right that the Yalta papers should be made of- 
ficially public. I believed — and still believe — that 
the American public, historian and citizen alike, 
is entitled to all relevant information on this 
ii( remarkable chapter in world history that could be 



' Made before the Senate Foreign Relations Committee 
m Apr. 19 (press release 215). 

May 9, 1955 



divulged without jeopardizing the national secu- 
rity. In this respect I share the view expressed 
by the late Edward R. Stettinius, Jr., who as Sec- 
retary of State participated in the Yalta Confer- 
ence. He said, in 1949, that "it is important for 
the public to know exactly what took place in the 
Crimea, and, almost equally important, what did 
not take place." That was said in the preface to 
his volume Roosevelt and the Russians, which very 
fully reproduces his detailed record of the Yalta 
Conference. 

The official United States publication has now 
taken place. I am glad to review with you the 
background and the chronology of events in con- 
nection with it. 

Background and Chronology 

The volumes on the Malta and Yalta Confer- 
ences were two of a number of volumes in the 
Foreign Relations series requested by the Senate 
Appropriations Committee in its report for fiscal 
1954. The request grew out of the supplemental 
hearings of the Senate Subcommittee on Appro- 
priations on May 15, 1953, which considered a 4- 
year publication program submitted by the De- 
partment of State. This program involved the 
reduction of the backlog of 26 volumes which 
had been compiled but not published, along with 
the publication of a series of volumes on our rela- 
tions with China during the 1940's and another on 
the World War II conferences of Heads of Gov- 
ernment. The Senate Appropriations Commit- 
tee's report of May 28, 1953, requested the Depart- 
ment of State to "allocate sufficient funds from the 
approijriation 'Salaries and expenses, 1954' to pro- 
vide the necessary personnel and other related 
expenses essential to start reducing the backlog" 
of the Foreign Relations volumes, and referred 
with approval to the 4-year program submitted by 
the Department. 

In the hearings for fiscal 1955 the Senate Ap- 
propriations Committee had before it a report 
from the Department showing the proposed sched- 
ule of publication which listed the Malta- Yalta 
volume as having top priority for publication in 
the series on World War II conferences. 

The Senate Appropriations Committee's report 
for fiscal 1955 stated : 

The Committee reiterates its firm conviction that the 
historic and documented record of our international re- 
lations as compiled in the Foreign Relations volumes 



773 



should be continued agSTi'ssively and in unexpurgated 
form. Kvery effort should he made to make these docu- 
ments availahle just as soon as security considerations 
will i>ermit. Accordingly, the Committee is recommending 
$227,280 for this specific purpose. 

The Yalta papers were ready to be sent to the 
printer early last September. If they had been 
])rinted at tliat time they would have been ready 
for publication in October. The question of 
whether to publish in October was put to me while 
I was in the Far East in September. On my in- 
structions, Assistant Secretary Carl W. McCardle 
cabled the Department from Tokyo on September 
11, 1954, as follows: 

With respect to date of publication. Secretary believes 
that it should not he published until after the conjo-es- 
sional elections. If the publication could have taken 
place a month ago, that would have been all right; but 
to publish only two or three weeks before elections would, 
he thinks, damn the entire operation as pt>litical. and in 
the eyes of students discredit it as politically motivated. 
They would be suspicious that the selection and omission 
of documents had been politically motivated. He would, 
therefore, recommend publication sometime about the 
first of December. 

That December date was not met because of 
unexpected developments. The British Foreign 
Office, in accordance with customary practice, had 
already been shown the documents of British 
origin and had cleared these, with very minor ex- 
ceptions which did not affect our foreign policy. 
But toward the end of November 1954 the Foreign 
Office asked to see the entire collection of docu- 
ments, including those of United States origin. 

In view of the understandable British interest 
in the minutes and related conference papers, the 
Department sent the entire set of galleys to the 
Foreign Office for its information. This was done 
on December 2, 1954. 

By early January, no comments had been re- 
ceived. So, on January 10, 1955, 1 sent a personal 
mes-sage to Foreign Secretary Eden telling him of 
our desire to proceed with public^ition without 
further delay and expressing the hope that he had 
no objections. On January 1:5, he replied that he 
still had some questions which he suggested we 
could discuss together at Bangkok the following 
month. He requested delay until then. 

In deference to the Foreign Secretary's wishes, 
I postponed the publication. However, under the 
pressures of other matters, Sir Anthony Eden and 
I failed to talk about this at Bangkok. 

Accordingly, upon my return from Bangkok I 



decided that, while awaiting British approval, a 
limited number of galleys should be printed and 
made available on an official basis for Depart- 
mental use and use by those committees of the 
Congress who had a special interest in them. On 
March 10, 1 cabled Sir Anthony recalling that he 
had planned to talk to me at Bangkok about the 
publication of the Yalta papers but that in the 
pressure of business we had both overlooked this. 
I said that, in deference to his views, I was still 
holding up general publication but that I did plan 
to make copies of these documents available to the 
appropriate congressional committees, for their 
official use. 

On Monday, March 14, at the regular noon 
briefing of the correspondents who cover the State 
Department, the State Department spokesman, 
Henry Suydam, announced this program. This 
announcement was premature, in the sense that it 
was made before Assistant Secretary Morton had 
had the opportunity to consult with the appro- 
priate members of these committees. 

Shortly after lunch on the 14th, I saw news 
ticker reports which indicated that the chairmen 
generally preferred that their committees not take 
custody of the papers but thought it would be 
better that the State Department make them gen- 
erally public. 

Assistant Secretary Morton confirmed tliis. and 
I then asked him to send the following letter to 
the respective congressional leaders: 

Pursuant to Congressional authorization and appropria- 
tion concerning special conference volumes the State 
Department has compiled the pai)ers relating to the Talta 
and Malta Conferences of 194.5. It is deemed inadvisable 
at this time to issue these papers in volume for public 
distribution. Since, however, the papers have actually 
been compiled and since they may be of interest to your 
C(unmittee members in their official capacity, but not for 
publication, the Department of State will, if your Com- 
mittee so desires, make a limited number of copies avail- 
able on a confidential basis. 

These letters were written Monday evening, 
March 14, and delivered by hand on Tuesday morn- 
ing, March 15. 

Consultation With British 

The Tuesdaj^ morning press indicated that the 
delay in jxiblication was widely ascribed to liritish 
objections. So, at 9 : 00 a. m. on Tuesday, March 
15, I telephoned the British Ambassador. I ex- 
pressed the view that, in the light of the wide 



774 



Department of State Bulletin 



liul)lic interest which had, by then, been aroused, 
it was better for Anglo-American relations to pub- 
lish at once rather than to allow the impression 
to gain ground that the United Kingdom had 
something to hide — which was not the case. The 
Ambassador indicated his concurrence. I said I 
would advise Sir Anthony Eden of my views, and 
j the Ambassador said he would do the same. He 
indicated that he felt confident that I would get 
a quick answer from Sir Anthony. Accordingly, 
at 10: 30 a. m., I sent a message to Sir Anthony 
s;i ring that I thought it midesirable to perpetuate 
a situation which created an atmosphere of 
mystery and concealment, and that, accordingly, 
unless he felt strongly against it, I proposed to 
publish. 

I should at this point observe that I had already 
carefully considered the possible impact of publi- 
cation upon the international situation and par- 
, ticularly upon the pending ratification of the Paris 
( accords by the German Bundesrat and the French 
' Council. I had concluded that that impact would 
not be unfavorable. 

At 10 : 30 on Tuesday morning, I spoke over the 
telephone with Senator George and informed him 
generally of the position and that I hoped shortly 
to be able to release the documents generally. 

At 11 : 00 on Tuesday morning, I had my regular 
press conference, at which I said : 

The Yalta papers are at the present time in galley-proof 
form. They are available here in the State Department 
for consultation on a restrictive basis by members of tlie 
Congress who are on committees that might be concerned 
with them, and we are still studying the matter of their 
full publication. 

■\Vliile Assistant Secretary McCardle and I were 
preparing for my press conference, James Reston 
of the New York Times telephoned Assistant Sec- 
retary McCardle's office and left the following 
message for him. 

Tell him while he is with the Secretary that I have 
had a long talk with George about the Yalta business and 
[ think I ought to see the Secretary after the Press 
Conference if I can. 

"WTien my press conference was finished, Assist- 
iiit Secretary McCardle brought Mr. Reston to 
. iiy office. Mr. Reston said that his impression of 
lis conversation with Senator George was that the 
senator wished to see the Yalta record made pub- 
ic by the State Department. Mr. Reston urged 
hat it was of the utmost importance that the 
)apers be published as a whole and not in garbled 



form ; that unless the New York Times did this, no 
one else would, but that this would be very ex- 
pensive and take time. Therefore, if there was to 
be any comiDrehensive publication, they had to 
have an advance copy since it would involve set- 
ting up an enormous printing job. 

I said that such matters fell under the jurisdic- 
tion of Mr. ]\IcCardle, Assistant Secretary of State 
for Public Affairs, who was a former newspaper- 
man. Thereupon the two left. 

I subsequently learned that Mr. McCardle gave 
a galley proof to Mr. Reston about 8 : 30 p. m. that 
evening (Tuesday) . This involved an exercise by 
Mr. McCardle of a discretion that was his. It 
involved no breach of security. On November 5, 
I had taken and recorded a decision to publish 
without deletion on an expedited basis. This con- 
stituted authority to declassify under Executive 
Order 10501.= The galley proofs, on March 3, 
were marked "For Official Use Only," under Mr. 
McCardle's instructions. This was not a security 
classification but a purely internal classification 
which Mr. McCardle himself had imposed and 
which he had full authority to remove. 

At 10:12 a. m. of Wednesday, March 16, the 
British Ambassador phoned me that his Govern- 
ment agi'eed to publish and that a confirmation 
cable from London was on its way to me. 

At 12 : 45 on Wednesday I lunched at the Capi- 
tol with Senators Knowland and Bridges. This 
appointment had been made 5 days before, on 
March 11. They mentioned that they had heard 
a rumor that the New York Times was going to 
publish the Yalta documents on March 17. I 
expressed surprise, but said that I thought that 
we would release the docimients that afternoon to 
all news media. When I returned fi-om limch, I 
found the confirmation cable from Sir Aiithony 
Eden agreeing that we should now publish. 

Also, shortly after I returned frotn my lunch 
with Senators Bridges and Knowland, James 
Hagerty [press secretary to the President] phoned 
me that he, too, had heard that the New York 
Times was planning to run the Yalta papers the 
next morning and I made to Mm the same reply 
I made to the Senators, namely, that I planned a 
prompt general release. 

At 3:45 I talked with Assistant Secretary 
McCardle and asked him to arrange promptly to 
release the documents generally. This was done 



■ IS Fed. Reg. 7049. 



iloy 9, 7955 



775 



I 



and there was a general publication the next 
morning (Thursday, March 17). 

Editorial Problems 

The decision to publish the Malta- Yalta records 
required decision as to just what to publish. 
As to this I relied primarily upon Dr. George B. 
Noble, who has served as Chief of the Division of 
Historical Policy Research or of the Historical 
Division since 1946. 

The task was not easy. There were no agreed 
tripartite minutes. The only records available are 
those which were made by certain members of the 
respective delegations. These were done on a na- 
tional basis, and no distinction was recognized 
between formal and informal conversations. 

At the Paris Peace Conference of 1919, minutes 
were kept of the meetings not only of the Council 
of Ten but for the most part of meetings of the Big 
Four (France, Great Britain, Italy, and the 
United States). These were circulated among 
the interested delegations and became substan- 
tially "agi-eed minutes." These minutes, which 
have been published, contain many casual com- 
ments of the nature of those to be found in the 
records of the Yalta discussions. 

"VVliere the participants in a conference do not 
themselves make any distinction in their remarks, 
as by asking that certain remarks should be treated 
as "off the record," it is extremely difficult for sub- 
sequent historians themselves to make the distinc- 
tion. Secretary of State Stettinius in his volume 
did not eliminate all of the so-called "chit-chat." 
The record published by the Department of State 
was the actual record as compiled by certain of 
the participants and supplied by them to the De- 
pai-tment of State for its records. 

The most complete record is that of Mr. Bohlen, 
w^ho acted as interpreter. Early in 1949 he had 
checked and cleared for accuracy the proofs of 
Mr. Stettinius' book, and in July 1949 Mr. Bohlen 
transmitted his own record to the Division of 
Historical Policy Research. 

It will be recalled that the report of the Senate 
Appropriations Committee for fiscal 1955 called 
for publication of the "unexpui-gated" record. I 
should, however, say that a very few casual or 
informal remarks have nevertheless been omitted 
which might have done harm without adding 
anything of substance to the record. 

In some cases remarks which otherwise might 

776 



liave been omitted by the above test have been in- 
cluded because they had previously been incorpo- 
rated in authoritative memoirs and given wide 
publicity. The harm, if any, was done, and 
omission in the official record would merely have 
served to raise question as to the validity of the 
publication. 

Desirability of Publication 

To sum up : 

(1) At no time have I had any doubt about the 
desirability of publishing the story of Yalta. 
This, indeed, seems to have been the view of three 
of my predecessors who have held office since the 
Yalta Conference. I have already quoted Mr. 
Stettinius, the Secretary of State at the time, af 
to how important he judged it for the public tc 
know "exactly" what took place at Yalta. Hif 
successor as Secretary of State, Secretary Byrnes, 
published in his memoirs his notes on the Yalta 
Conference. Secretary of State Acheson early in 
1949 cleared the publication by former Secretary 
Stettinius of his extensive record of the conference 

The view that there should be publication was 
not only an executive judgment but also explicitly 
endorsed by the United States Congress, which 
appropriated the funds for prompt and full 
publication. 

It has been a matter of common knowledge for 
approximately 2 years that publication was in 
process, and this has seemed to meet with general 
approval. 

(2) The timing was judged opportune, in the 
light of the general international situation, and I 
think it has pi'oved opportune. Furthermore, 
the timing was such as to avoid any approximation 
to a domestic election period. 

(3) When publication was finally agreed upon, 
there was full publication of the volume which 
covers the Yalta Conference. I believe that at 
least two newspapers, within a few hours of the 
release, carried the full text of about 300,000 
words, while others carried very substantial por- 
tions. This served the indispensable purpose of 
assuring that the American people and interested 
peoples abroad would easily and quickly get the 
main story in full and not be dependent upon 
extracts which might have been selected for par- 
tisan purposes or for reasons of pure readability. 

(4) The Yalta papers are now where they 
belong — in the public domain. 

Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



World Progress in Improving the Status of Women 



Statements hy Mrs. Lorena B. Hahn 

V. S. Representative on the U. N. Commission on the Status of Women ^ 



EQUAL SUFFRAGE FOR WOMEN 

U. S./U. N. press release 2127 dated March 15 
[Excerpts] 

Again this year we open our discussion with a 
report of progress. Since we last met, the grant 
of suffrage to women in Lebanon has been com- 
pleted, and the women in Colombia and in Hon- 
duras have also achieved the right to vote. In 
addition, women in Haiti have voted for the first 
time in a local election. They are now eligible to 
vote in the next national election. These gains 
bring the number of equal suffrage countries in 
the world up to 62. 

Each new grant of suffrage is important. It is 
important for the country which makes the grant. 
It is important for women who already have the 
vote, for we all share in the sense of achievement. 
It is even more important for women in countries 
where they do not yet have the right, for each new 
grant opens the door a little wider toward the 
future when they, too, will share equally in politi- 
3al life. 

l^ach country where women do not have the 
franchise is still a matter of real concern. These 
L'ountries are using only 50 percent of their poten- 
tial for active government. 

' In some of these countries women are in activi- 
ties which will help them understand their re- 



' Made in the Coinmis.sion on Mar. 15, 16, 24, 29, and 30. 
For an article by Mrs. Hahn on "The tJ. N.'s Role in 
luiijroving the Status of Women," see the Buixetin of 
July 5, 1954, p. 23. 



sponsibilities as citizens. In others they have as 
yet had little opportunity to work together. Fre- 
quently the first step is the organization of a 
woman's club. This may be a sewing group, or a 
committee for a hospital, or a study progi'am on 
child welfare. Any such group provides experi- 
ence in the conduct of meetings and the problems 
of organization. The reports which come to us 
each year from the trust and non-self-governing 
territories show how these local groups move on 
to wider programs of community welfare, often 
as the result of leadership from official authorities. 

The great international federations which sit 
with us as nongovernmental consultants began in 
local clubs. Some of them already have branches 
in countries where women have not yet won the 
vote. I believe it would help us to know more 
about women's organizations in these countries — 
what opportunities these women have to partici- 
pate in the international organizations and with us 
here in consultative status. We would therefore 
like to suggest that the Secretary-General obtain 
information for us next year on this point. For 
purposes of comparison, we have suggested that 
this same information be obtained on countries 
which have granted suffrage to women within the 
last 5 years. 

The climate of opinion is everywhere a decisive 
factor as to good government and the part which 
women feel free to play in making government 
good. Public opinion is usually a reflection of 
citizenship education. The programs organized 



Moy 9, 7955 



777 



by women voters on the fundamentals of govern- 
ment, taxation, the business of running schools, 
and public liealth services are usually valuable 
to the whole community. . . . Since our last ses- 
sion Unesco has published the volume by Miss 
Tait of the United Kingdom on The Education of 
'Women for Citizenship. . . . Fundamental edu- 
cation is also a source through which women are 
learning about govermnent. 

The Secretary-General's Report on Political 
Rights of Women ^ again deserves commenda- 
tion. . . . The historical section contains an inter- 
esting addition. In the section on Sweden it is 
stated that munarried women possessing a certain 
amount of property were first allowed to vote in 
18G3. I mention this because in previous editions 
the earliest date given for woman suffrage was for 
the territory of Wyoming in the United States, 
where women first voted in 1869. It is therefore 
only becoming for us to recognize the claim of 
others to an earlier date. 

However, it is possible that women voted on the 
basis of property in other countries before a gen- 
eral grant was considered. This entry on the part 
of Sweden may stimulate others to examine their 
history. We have records in this country of wom- 
en of property who voted in colonial times, before 
the United States was established as an independ- 
ent government, and also of women property 
holders who voted for some years after our present 
Constitution was adopted in 1789. These women 
seem to have lost their right to vote when the old 
limitations on the basis of property were dropped; 
when the right to suffrage became every man's 
right, the women were forgotten. It is a question 
how far this history — of allowing women to vote 
if they paid a certain amount of taxes or owned 
a certain amount of property — made it easier for 
women to gain universal suffrage. 

In our case, women first gained the right to vote 
on universal terms in our Western States, where 
they had gone with their men as pioneere and were 
recognized from the start as making an equal and 
essential contribution to the life of the frontier. 
The States in the eastern part of our country did 
not grant women the vote until about 1920, even 
though it was in these States that property-holding 
women were still voting in the late 1700's. We 
may all want to examine our records and contrib- 
ute further to the historical section of this report. 



' L.N. doc. A/2C02. 



EQUAL PAY FOR EQUAL WORK 

U.S./U.X. press release 2129 dated March 16 
[Excerpts] 

One of the most effective promotional cam- 
paigns conducted by nongovernmental organiza- 
tions anywhere in the world in recent years has 
been the work of the Equal Pay Campaign Com- 
mittee in Great Britain. This committee is com- 
posed of about 50 national organizations, all of 
M-hich worked together for some 10 years to obtain 
equal pay in government employment. 

Following the last pre\nous session of this Com- 
mission, an announcement was made by the 
Government of the United Kingdom that the 
equal pay policy would be gradually put into effect 
for workers in the nonindustrial civil service. 
We would like to take this opportunity to con- 
gi-atulate the U.K. delegation on the major social 
gain which that announcement i-epresents for the 
women of that country. 

Our experience in the United States has demon- 
strated that the establishment by govenmients of 
an equal pay policy for their own employees serves 
as an impetus toward removal of discriminatory 
wage practices against women in private industry. 
The adoption of equal pay for government work- 
ers is of particular interest to the members of this 
Commission since the activities of voluntary 
organizations played a major part in bringing it 
about. 

]Many promotional methods are currently being 
used by women's organizations in the United 
States. In our country, women, together with 
citizens in general, have the right of freedom of 
speech and an opportunity to express their opin- 
ions and attitudes about all aspects of social and 
economic life. The will of the majority governs, 
and women long ago learned to pool their indi- 
vidual resources and work together for conunon 
goals. 

A major objective on which women's organiza- 
tions in the United States unanimously agree is 
the importance of eliminating wage differentials 
based on sex. In working for this objective they 
have placed particular emphasis on the impor- 
tance of influencing public opinion and conduct 
through information, education, and example. 
They have also sought to crystallize favorable pub- 
lic opinion tlirough the enactment of legislation. 
However, they know that, without public support, 
legislation is not necessarily effective, and they 



778 



Departmenf of State BuUetin 



regard enactment of a law as only one step in a 
long-term educational pi'ocess. 

Currentl}', the equal pay activities of oi'ganiza- 
tions and individuals are centered on legislation. 
State equal pay laws covering employees in pri- 
vate industry are the fastest growing type of labor 
legislation affecting women. Laws are in effect 
today in more than a quarter of our States. All 
but two of these laws have been adopted within 
the last decade. 

In the majoi'ity of our States the State Legisla- 
tures meet once in every 2 years, and the legisla- 
tures are now meeting in 45 States. In recent 
weeks equal pay bills have already been introduced 
in the legislatures of 15 States, in each case with 
the backing of women's and civic gi'oups and 
unions. In one State, Arkansas, an equal pay 
bill has passed both houses. In two States, 
Oregon and Nevada, equal pay bills have passed 
one house. Before the end of the legislative ses- 
sions, new equal pay laws may be enacted in 
additional States. 

One of the States in which an equal pay bill is 
now pending is my home State of Nebraska. The 
work which the women's organizations and others 
in Nebraska have done to arouse public opinion in 
support of this bill is typical of activities cur- 
rently being carried on to obtain equal pay legisla- 
tion in other States. 

Labor unions as well as women's organizations 
have been active in promoting equal pay legisla- 
tion. The equal pay principle continues to re- 
ceive recognition in collective bargaining agi'ee- 
ments, and many employers have established the 
rate for the job because they recognize that it is a 
sound business practice. This is important since 
in the L'nited States, a country of free enterprise, 
it is private industry which employs the majority 
of our workers. 

In their campaigns for equal pay, organizations 
and interested individuals in the United States 
obtain much valuable material and information 
from the Women's Bureau of the United States 
Department of Labor. Eecently this Bureau has 
completed an Equal Pay Pruner which presents 
in, popular form the underlying facts' in support 
of equal pay. The Primer recognizes a fact also 
mentioned in the Secretary-General's report,^ 
namely, the need to educate people everywhere on 
the value of women's work. It answers some of 

' U.N. doc. E/CN.6/263. 

May 9, 1955 



the questions that are often raised, such as "Are 
women entitled to equal pay — Are they good 
workers — Do they have responsibilities for family 
sujjport — Does equal pay interfere with their em- 
ployment opportmiities?" The publication was 
especially prepared for use at the Y. W. C. A. 
Centennial which will be held here in New York 
next month. However, the information con- 
tained is valuable to all organizations interested 
in i^romoting the equal pay principle. 

Equal pay seems to us to be one of the perma- 
nent and continuing interests of this Commission, 
as long as there are women anywhere who are paid 
a lower wage rate than men merely for reasons of 
their sex. Widespread adoption of the equal pay 
principle is important not merely as a matter of 
economic justice because it gives women a fair re- 
turn for the work they do and increases their 
wages. More than that, the equal pay principle 
has far-reaching social implications. It is a well- 
known trait of human nature that the value we 
place on any object tends to conform pretty closely 
to the price we pay for it. The practice of paying 
women a lower price for their work is a reflection 
not only on the value of their work but in the final 
analysis on their stature as' persons and as citizens. 

Much has been said by certain members of this 
Commission in the last few days to the effect that 
women have equal rights with men and equal pay 
on the job. It is interesting that they have equal 
rights but the question that should be receiving 
the attention of this Commission is whether they 
have equal opportunities. 

The job that remains to be done in many coun- 
tries and one which we have only begun to con- 
sider is how to help women attain positions of 
sufficient skill and competence so that they have 
the opportunity for equal pay. 

To explain my point a little more fully, the 
I'ight to equal pay is the right of a woman to be 
paid the same wage rate as a man when she is 
employed on a similar job. To be entitled to equal 
pay she must first be doing the tj'pe of work that 
a man is doing. In the L^nited States today 
women are doing practically all types of work. 
This is a change since a decade ago when there 
were still some such occupations which were vir- 
tually bari'ed to women. However, although there 
are some women in all types of employment, the 
proportion of women employed on many of the 
higlier level, more skilled occupations is smaller 
than that of men. 

779 



In other words, while equal rights and equal 
pny are very desirable, women also need equal 
opi)ortunities. Women need opportunities for 
specialized training. They need encouragement 
to use their opportunities. Old prejudices against 
cmi)loying women even after they are trained need 
to be broken down. Although we have made 
tremendous progress in this direction in the 
United States, we are not satisfied — much more 
needs to be done. If women in other countries 
are in the same position, it seems to me that this 
is a subject to which we could profitably direct 
the attention of the Commission. It would be a 
logical projection of our interest in equal pay, and 
it miglit also be appropriately considered in our 
discussion of employment opportunities. 



EDUCATIONAL OPPORTUNITIES FOR WOMEN 

U.S. /U.N. press release 2133 dated March 24 
[Excerpts] 

I would like to turn back a moment to the edu- 
cation of women 60 or 70 years ago. The change 
in this period of less than a century is breath- 
taking. 

In the United States girls and boys went to 
school together as the schools were established, 
and by 1900 more than 70 percent of both boys and 
girls were receiving an education through the ele- 
mentary grades or beyond. Today more girls than 
toys graduate from our high schools. In this 
respect the situation in the United States differs 
from that of other countries. 

But girls in the United States have not always 
been encouraged to continue beyond the primary 
grades. In earlier years some families assumed 
that girls had little need for book education. They 
felt that girls should stay home to help with the 
housework, and there was also a feeling that edu- 
cation might be harmful to women. In 1850 Dr. 
Todd, who was a popular speaker in our country, 
was fearful that even an elementary education 
might "incapacitate girls . . . for the duties and 
joys of their natural future. . . ." 

This same prejudice against education for 
women was a serious problem for students in the 
1870's, even though a number of our State uni- 
versities and private colleges were then admitting 
women. The fear was that girls could not stand 
the strain of higher education ; feeling was fairly 
general that hard study, particularly at the college 

780 



or university level, would cause permanent dam- 
age to a woman's health. When the first Associa- 
tion of College Women was founded in the United 
States in 1882, its members decided to get the facts 
on this question. They prepared a questionnaire 
and sent it to 1,290 college graduates. Seven hun- 
dred and five replied. The Government of the 
State of Massachusetts considered this study so 
important that it tabulated and published the re- 
sults. The State Bureau of Labor came out with 
the verdict that "female graduates of our colleges 
and universities do not seem to show . . . any 
marked difference in general health, from the 
average health likely to be reported by an equal 
number of women in other kinds of work." This 
study was published in 1885 and was widely cir- 
culated. The American Association of University 
Women, from whom I obtained this information, 
believes that this report was put to good use in 
combatting prejudice against education for 
women. 

One of the great forces for progress in this coun- 
try, and I am sure this is true elsewhere as well, 
has been the insistence of the first women who 
acliieved an education that others should have it 
too. They gained the support of men of vision 
and purpose. Together they fought for colleges 
for women and also for the right to attend profes- 
sional schools. They raised money for scholar- 
ships and fellowships. Women's organizations are 
still raising money for scholarships. 

I am going back over this history because it is 
evident that the pioneer period is by no means 
over. There are still countries in which the same 
battle must be fought by courageous women who, 
having gained an education, are determined that 
all other women have the same opportunities. 
History can save costly mistakes in time and 
facilities. 



OLDER WOMEN WORKERS 

U.S./U.N. press release 2135 dated March 29 

The problem of older workers is one that is in 
creasingly receiving attention in the United States 
In my comments today I would like, first, to de- 
scribe the size and nature of the problem ; anc 
second, to explain the practical measures beinj 
taken by government and voluntary group; 
toward helping to solve it. 

Since the last decade of the 19th century th< 



Department of State Bulletii^ ^ 



il 



total labor force in the United States has increased 
from 22 million workers to 60 million. The great- 
est change took place with respect to women. The 
number of women workers increased 41/^ times; 
the number of men workers increased only 21/^ 
times. 

For both men and women the greatest rate of 
increase was in the number of workers 45 years 
of age and over. The number of women 45 years 
and over increased 4 times in the population but 
almost 9 times in the labor force. 

Today women ai'e one-third of our total labor 
force of 60 million workers. The median age of 
the woman labor force is 38 years. Among all 
women workers nearly one-third (6% million) 
are women 45 years of age or older. Well over 
half of all women workers are 35 yeai's of age 
or older. The trend is toward a smaller propor- 
tion of women workers in the child-bearing age 
ujroups and a higher proportion of women workers 
in the older age groups. 

The whole United States population is living 
longer. Since the turn of the century, the average 
'ife expectancy has increased by several decades. 
Vloreover, wives tend to outlive their husbands; 
he number of widows is increasing. Today, there 
ire 7y2 million widows in the United States. They 
nake up 12 percent of all women between 45 and 
i5 years, and over 25 percent of all women between 
■5 and 65 years. This is an additional reason 
vhy employment of older women is a vitally 
mportant subject. 

The National Conference on Aging, held in 
Lugust 1950, adopted the following definition of 
n older worker : 

An older worker is an adult who meets with resistance 
> employment, continued employment, or re-employment, 
)lely because of age. 

The age at which workers meet such resistance 
different for women than for men. In the 

iiited States the age limit frequently set by em- 
liiyers for women they will consider hiring is 

> years. This is 10 years less than the 45-year 
;e limit more often applied to men who seek 
ui])loyment. 

Yet women who have passed their 35th birthday 
i' tin must work to supjiort themselves, and many 
i e responsible for the support of others. Al- 
1 1 >ugh more middle-aged and older women are in 
1e labor force than ever before, additional num- 
1 rs of such women need and would like jobs. 
' lese include women who were left widows and 



others who, because of our modern pattern of 
living, are free at middle age to work outside the 
home. Such women often find that their mature 
age creates difficulties in finding jobs. 

Many older women are "new workers." They 
either have never worked or had last worked be- 
fore their marriage. In their efforts to secure jobs, 
they are handicapped not only by their age but 
also by the fact that they have no marketable skills 
or, at best, they have only the vestiges of skills 
grown rusty through lack of use. 

The United States Government is taking an 
active interest in this problem. The Department 
of Health, Education, and Welfare is actively con- 
cerned with improving the general welfare of the 
aging population. The Department of Labor has 
a direct interest in their employment problems. 

In March 1954 Secretary of Labor James P. 
Mitchell appointed a special committee to explore 
the employment situation of older workers. This 
connnittee is concerned with the improvement of 
services for counseling, training, placement, and 
employment opportunities for older workers. It 
will develop materials for use of State employ- 
ment agencies and community organizations in- 
terested in developing special services. It also 
plans to explore how best to enlist the understand- 
ing and support of management, labor, and civic 
groups. Because older women workers are enter- 
ing the labor force in increasing numbers, the 
Secretary requested the committee to give special 
attention to their vocational training and place- 
ment needs. 

The Women's Bureau of the Department of 
Labor has made an especially significant contri- 
bution to the problem of older women workers. 
The Bureau has prepared research studies, partici- 
pated in programs of outside groups, and by other 
methods directed public attention to the special 
employment problems of older women workers. 

In addition to Federal agencies, a large number 
of States have established committees on aging. 
Some of these were created by legislation, although 
most were set up by executive action. The employ- 
ment problems of older men and women are in- 
cluded among the matters which receive the 
attention of these committees. 

Among the Women's Bureau studies was a sur- 
vey of more than two dozen community programs 
designed to train or retrain older women for em- 
ployment. The programs were varied. They had 
differing sponsorehips, concerned different occu- 



Jay 9, 1955 



781 



pations, and related to cities in different parts of 
the country. Many of them related only to 
women; some of tliem covered men as well as 
women. The majority of women trained under 
the projrrams were mature women in their forties 
and fifties. The results of their training were 
gratifying, since many of them were placed in 
paid emj)loyment. 

The significant point for this Commission is 
that all these programs were initiated and de- 
veloped as cooperative projects between public 
agencies and private groups. State employment 
services, public school systems, municipal depart- 
ments, voluntai-y agencies, and employers were re- 
sponsible for their development and success. One 
of the important facts learned by the Women's 
Bureau was that the individual community has 
resources available to help the older worker. Simi- 
lar programs can be developed in other areas by 
focusing ])ublic interest on these problems. 

I would like to describe a few of the programs 
in order to illustrate the types of voluntary action 
that local community organizations may take: 

(1) In AVashington, D. C, the Board of Edu- 
cation and the Restaurant Association have estab- 
lished a cooperative program to train and place 
•waitresses, hostesses, and cashiers. The two or- 
ganizations share responsibilities and costs. The 
Board of Education pays the teacher's salai-y and 
the Restaurant Association provides the training 
space and equipment. The course is given 2 hours 
daily, 5 days a week, for 4 weeks. Almost all of 
the trainees have been women between 40 and GO 
years of age, and practically all secured positions. 

(2) In Hazelton, Pennsylvania, the State De- 
partment of Public Instruction and the Chamber 
of Commerce have a continuing jn-ogi-am, started 
in June 1953, to train men and women as power 
sewing machine operators. The Department of 
Education provides the classrooms and the 
Hazelton Chamber of Commerce furnished 15 
power sewing machines with the cooperation 
of a local machine distributor. The Pennsyl- 
vania State Employment Service also cooper- 
ates by selecting suitable trainees for the course 
and placing them when they are i-eady to take 
jobs. During the training period, which con- 
sists on the average of 4 weeks of daily attendance 
for G hours a day, trainees receive individual atten- 
tion. Seventy percent of those who trained during 
the first 6 months of the program were women 

782 



over .35. Over three-fourths of those who com- 
pleted the training were placed in the local needle 
trades industry. 

(3) A shortage of industrial hand sewers in 
Scranton, Pennsylvania, prompted the Pennsyl- 
vania State Emploj'ment Service to initiate a one- 
time course for mature women. The training 
space and sewing equipment were furnished by the 
Jewish Community Center, and free supplies were 
donated by a large local manufacturer who needed 
hand sewers. The Pennsylvania State College Ex- 
tension Service provided an instructor. Trainees 
were selected by the Emploj'ment Service from 
the file of women job applicants who were not 
qualified for immediate employment. Following 
the 13-week training period, during which a 4-hour 
class was held each week, all but one of the women 
were placed. The only woman who was not placed 
was one who had not finished the course. 

These are just a few of the community projects 
that have been developed in the United States to 
help older women workers find employment. Some 
of the programs have been onetime ventures. 
Others have been continuing. We believe there is 
need for additional work along similarly practical 
lines. 



TECHNICAL ASSISTANCE 

U.S./O.N. press release 2140 dated March 30 
[Excerpts] 

This year, for the first time, the United Nations 
has provided technical assistance for the particular 
purpose of improving the status of women. This 
was possible because the General Assembly, in De- 
cember 1953, authorized programs for this pur- 
pose. It was my good fortune to be in Karachi 
at the time Mrs. Tenison-Woods, the expert chosen 
by the Secretary-General, was concluding her 
service in response to the request of Pakistan foi 
assistance. Since this Commission has benefi 
by her leadership as Chief of the Status of Wom^ 
Section in the Secretariat, we have good reason toi 
congratulate the Secretary-General on his choi 
and Pakistan on its good fortune. This fii-st proj 
ect should help us point up ways of helping 
governments which want to encourage women 
to make a full contribution to national life, 

As we have realized in previous years, the statui 
of women is improved also bj' technical assistam 
projects in other fields. These projects improv( 



fl 



Department of State Bu/Zeffll i, 



the health and welfare of all individuals in the 
country, witliout distinction as to sex. More im- 
portant, as the per capita wealth and productivity 
of a country increases, families, and especially 
mothers of families, have a wider choice as to how 
the income and energy of the family can be spent. 
Last j'ear I discussed various examples of tech- 
nical assistance from this point of view. This 
year, I would like to describe others which point 
up special values for women. 

I have here a story from the Caribbean. A 
regional project in home economics has been in 
operation there for the past 2 years, under the 
joint sponsorship of the Food and Agriculture 
Organization and the Caribbean Commission, 
which includes the non-self-governing territories 
in that area. The technical expert in charge is 
Miss Elsa Hagland of Sweden. She has centered 
her work on training teachers for schools and 
demonstration work throughout the islands. 
After a first training conference for English- 
speaking teachers, which was held in Puerto Rico, 
Miss Hagland visited each trainee in her home 
island and helped her organize local training pro- 
grams for interested women in the area. She has 
coordinated school garden activities with school 
limch programs and used both to illustrate nutri- 
tion standards and how to make simple food 
attractive. She has helped rural families build 
stoves of clay and stones, stoves that stand waist 
high, so that the mother need no longer stoop over 
to cook in a single pot in a smoky hole in the 
ground. Now she is organizing a training course 
for French-speaking people. This type of work 
IS contagious. And the status of women rises 
ilong with the improved health and convenience 
)f the family. 

1 have a similar story from Iran. The Gov- 
rnnient of Iran is si:)onsoring technical assistance 
»rograms in which the United States has been 
irivileged to cooperate. The Iranian Ministry of 
<^ducation is now making home economics a part 
if the curriculum for girls' schools. The teach- 
ng begins in the elementary schools and is adapted 
i-ui'al as well as urban needs. It has begun to 
each the villages and the nomadic tribes of 
no lent Persia. There are also adult homemaking 
rejects based on cleanliness, sanitation, and 
ealth. 

JNIany of the teachers and supervisors in this 
rogram are women of wealth and education who 
ave volunteered and trained for the work. In 



lay 9, J 955 



one center, a large group of local women, women 
who still wore heavy veils, refused to leave a school 
until it was agreed that enough classes would be 
set up for all of them. They insisted they "wanted 
everything, so they could surprise their husbands 
and make their homes better." 

Such interest on the part of women at opposite 
economic and educational levels reaches deeper 
than lessons in homemaking. As women learn 
that they can make a difference in the health and 
happiness of their families, they find new cause 
for self-resjaect and new ways to win the coopera- 
tion of those about them. Community activities 
become possible as tliey gain hope and courage. 
For example, in one village in Iran where 30 
young women laid aside their veils to train as 
home economics teachers, 16 of the group volun- 
teered to ride donkeyback some hundred miles to 
live in otlier villages where women had asked for 
demonstration centers. This is leadership in the 
making. 

A United Nations project of a more general 
type — in housing and community planning — sug- 
gests how women can help as well as benefit in 
efforts to improve village life. This is sparked 
by a model village on the outskirts of New Delhi, 
in India, which I visited when I was there. The 
materials are inexpensive; one house is a "growing 
liouse," of two rooms to which others can be added 
as the family grows. The cooking is done out- 
doors, under a projecting roof. The model village 
also contains a village center, a school, and a 
health clinic. It has modern sanitation, good 
water, and careful drainage. People have been 
coming in from all over India to see this village 
and to take the news back to their own homes. The 
women of India, the village women as well as 
those who are leaders in national planning, have 
been working in this project. 

I saw another aspect of teclinical assistance in 
Liberia. Fundamental education classes were in 
progress everywhere. Groups were learning to 
read in every shady spot. The books they were 
using as j^rimers were full of good information on 
everyday living — and women were learning along 
with their husbands. The lessons dealt with 
proper nourishment, home planning, and child 
care, and also these people were discussing prob- 
lems of local government and responsible citizen- 
ship. 

Programs undertaken by the U. N. and by gov- 
ernments have sparked similar efforts by non- 
783 



I 



governmental agencies — including -women's or- 
ganizations. One of the most hopeful of these 
projects has been undertaken in the Near East by 
the International Federation of Business and Pro- 
fessional Women's Clubs, on a grant from the 
Ford Foundation. Miss Ruth Woodsmall of the 
United States, who is directing this survey on 
how women may contribute more elTectively to 
national life, has had long experience in equip- 
ping women for leadership. She is working 
toward a regional conference to discuss needs and 
possibilities. 



ECOSOC Votes To Reconstitute 
Advisory Committee on Refugees 

STATEMENT BY PRESTON HOTCHKISi 

I would like to take this oi^portunity to express 
the satisfaction of my Government in the progress 
made by the Office of the United Nations High 
Commissioner for Refugees in developing a pro- 
gram of permanent solutions for refugees. My 
Government is fully aware of and grateful to the 
High Commissioner, Dr. van Heuven Goedhart, 
and his staff for the preparatory work which has 
been done, and I would again, on this occasion, 
assure Dr. Goedhart of the continuing esteem and 
confidence in which he and his office are held by 
my Government. 

The task confronting the High Commissioner 
and the proposed new Unref Executive Commit- 
tee is a difficult one. It is, however, an under- 
taking which has the full support of my Govern- 
ment because the plight of the thousands of 
refugees coming within his mandate is a matter of 
deep concern to us. The record over the years of 
the conscientious i)art played by the American 
Government and the American people in the relief 
and resettlement of refugees is, of course, well 
known. My Government, however, is aware that, 
despite all the efforts of the past, the refugees 
under the High Commissioner's mandate still 
present a serious problem tluit must be faced. It 
hopes that every country will join with it in sup- 
porting the High Commissioner's program to find 

'Made in the Econoniic nnd Social Council on Mar. 30 
(U.S.AI.N. press release 2138). 

784 



permanent solutions for the unassimilated ref- 
ugees coming under his mandate.^ In this con- 
nection, I am pleased to say that the President 
will request the Congress to authorize a substantial 
United States contribution to the United Nations 
Refugee Fund. 

In connection with the matter pi'esently before 
the Council, my Government endorses the recom- 
mendation of the High Commissioner and his 
Advisory Committee that the Conmiittee be re- 
constituted as an Executive Committee responsi- 
ble, in the language of the General Assembly 
resolution,' "for giving directives to the High 
Commissioner in carrying out his programme and 
for exercising the necessai-y controls in the use of 
funds" while keeping its existing advisory func- 
tion. My Government agrees that it would be ap- 
propriate for the reconstituted committee to be 
known as the "Unref Executive Committee." It 
also agrees that the change in title and the revised 
terms of reference do not involve any change in 
the Statute of the High Commissioner and that 
the statutory functions of the High Commissioner 
will not be affected. 

As regards the detailed terms of reference of the 
Executive Committee, my delegation has intro- 
duced a draft resolution contained in document 
E/Tj.656. This draft resolution is prompted by 
the ideas set forth in annex 2 to the High Commis- 
sioner's report set forth in E/2678. We are grate- 
ful to the Advisory Committee for having given 
such careful consideration to these terms of refer- 
ence. Any differences in our text as compared 
with that in the High Commissioner's report are 
either purely editorial or designed to clarify some 
of the terms of reference or intended to bring these 
terms of reference more closely into conformity 
with practices established by the Council. We 
have added some sections which are to give the Ex- 
ecutive Committee the necessai'y procedural powers 
and to assure clarity on financial relations with 
the United Nations. I should like to reserve the 
right to discuss the details of our resolution as 
appropriate at a later stage. 

In conclusion, may I express the hope that the 
Council will give its endorsement to this com- 
mendable program and expedite its implementa- 
tion by promptly providing for the establishment 

■ For background on I he jiermanent solutions program, 
see Hui.i.ETiN of Apr. 18, 1955, p. 652. 
" Ibid., Nov. 8, 1054, p. 705. 

Department of Stale Bulletin 



of the United Nations Refugee Fund Executive 
Committee. 



reXT OF RESOLUTION < 

CJ.N. doc. E/Eesolution (XEX) 1 

The Economic and Social Council, 

Taking account of General Assembly resolution 832 
(IX), 

Having considered proposals submitted to it by the 
United Nations High Commissioner for Refugees, on the 
advice of his Advisory Committee, 

1. Decides to amend Council resolution 393 B (XIII) 
in order to reconstitute the United Nations High Commis- 
sioner's Advisory Committee on Refugees as an Execu- 
tive Committee, to be Ijnown as the United Nations Ref- 
ugee Fund (Unref) Executive Committee, with the fol- 
lowing terms of reference: 

4.. Executive Functions 

The Executive Committee, during the period of the 
Fund's existence, in accordance with such principles as 
may be laid down by the General Assembly, shall, with 
respect to the programme for permanent solutions and 
emergency assistance : 

(a) Give directives to the High Commissioner in car- 
rying out this programme ; 

(b) Determine the general policies under which the 
operations of the Fund shall be planned, developed and 
administered ; 

(c) Determine an annual financial target for the Fund 
and an annual operational plan covering : 

(i) The respective amounts to be allocated for per- 
manent solutions and emergency aid ; 
(ii) The amount to be allocated for each country ; 

(d) Consider and act upon the High Commissioner's 
ietailed proposals, including plans for adequate financial 
'3T other contributions from within the countries of resi- 
lence ; 

(e) Exercise the necessary controls in the use of the 
Eunds made available to the High Commissioner for the 
purposes of the Fund; 

( f ) Adopt administrative regulations for the Fund, 
ueliKling provisions to ensure that the Committee shall 
lave before it the financial implications for each project 
n its entirety before considering and acting upon it; 

(g) Consider the annual financial report of the High 
commissioner, and review the expenditure incurred under 
Jie Fund, including administrative expenditures charged 
;o the Fund ; 

(h) Ensure that all necessary steps are taken to pro- 



* Introduced by the United States ; adopted, as amended, 
m Mar. 31 by a vote of 14-2-2. 



mote close co-operation of the administration of the Fund 
with governmental, inter-governmental and non-govern- 
mental organizations that are directly concerned with 
the prol)lems of refugees ; 

(i) Ensure that all necessary steps are taken to provide 
appropriate continuing supervision of all approved 
projects ; 

B. Advisory Functions 

The Executive Committee shall advise the High Com- 
missioner for Refugees, at his request, in the exercise of 
his functions under his Statute ; 

2. Decides that the Executive Committee shall : 

(a) Consist of twenty States Members and non-Mem- 
bers of the United Nations, selected on the basis of their 
demonstrated interest in and devotion to the solution of 
the refugee problem, including the present members of 
the Advisory Committee, the membership being subject 
to review at the twenty-third session of the Council ; 

(b) Elect its own officers and meet regularly twice a 
year and at such other times as it may be convened by 
the Chairman uixjn the request of any six of its members, 
or at the request of the High Commissioner in the exer- 
cise of his functions under his Statute ; 

3. Authorizes the Executive Committee to establish its 
own rules of procedure and such standing sub-committee 
or sub-committees as may be required for the execution 
of its functions; 

4. Requests the High Commissioner to submit through 
the Secretary-General to the General Assembly an annual 
audit report of the accounts of the Fund ; 

5. Requests the High Commissioner to submit to the 
Executive Committee, six weeks prior to its regular meet- 
ings, a progress report, including a country-by-country 
project analysis ; 

6. Requests the High Commissioner to attach to his 
annual report to the General Assembly the report of the 
Executive Committee. 



United States Issues Invitations 
to Conference on Fur Seals 

The Department of State announced on April 
22 (press release 223) that the United States Gov- 
ernment has issued invitations to the Governments 
of Canada, Japan, and the Union of Soviet 
Socialist Republics to attend a conference to 
negotiate a treaty for the conservation of the fur 
seals of the North Pacific Ocean. The conference 
is expected to open at Washington in the latter 
part of November 1955. 

The invitations were delivered by the American 
Embassies at Ottawa, Tokyo, and Moscow. 



May 9, 1955 



785 




THE FOREIGN SERVICE 



Current Actions 



MULTILATERAL 



Confirmations 

The Senate on April 20 confirmed G. Frederick Rein- 
hardt to be Ambassador to Viet-Nam. 



North Atlantic Treaty 

Protocol to tlie Nortli Atlantic Treaty on the accession 
of the Federal Republic of Germany. Signed at Paris 
October 23, 1954.' 

Acceptances deposited: Denmark, April 23, 1955 ; Portu- 
gal, April 26, 1055. 



BILATERAL 

Argentina 

Agreement for the sale of surplus agricultural commodi- 
ties. Signed at Wa.shington April 25, 1955. Entered 
into force April 25, 19.55. 

China 

Agreement amending the annex to the agreement of May 

14, 19,54 (TIAS 2979) relating to the loan of small naval 
craft to China. Effected by exchange of notes, with 
memorandums, at Taipei March 22 and 31, 1055. En- 
tered into force March 31, 1955. 

Germany 

Agreement relating to offshore procurement. Signed at 
Bonn April 4, 1955. Enters into force upon the deposit 
of an instniment of ratification by the Federal Re- 
public of Germany. 

Jordan 

Agreement amending the agreement of May 1 and June 
29. 1954 (TIAS 3145) relating to duty-free entry and 
defrayment of inland transportation charges for relief 
supplies and packages. Effected by exchange of notes 
at Amman March 15 and 24, 19.55. Entered into force 
March 24, 1955. 

Norway 

Agreement to facilitate interchange of patent rights and 
technical infonnation for (Icfense puriw.ses. Signed at 
Oslo April 6, 10.55. Fnt<'r('d into force April (>, 1955. 

Peru 

Agreement extending agreement providing for a coopera- 
tive agriculture program dated Sejitemher 15 and 21, 
1950 (TIAS 21(51). Effected by exchange of notes at 
Ijima February 23 and March 9, 1055. Entered into 
force March 10, 10,55 (date of signing of an extension 
to the operational agreement). 

Agreement providing giniranties against inccmvertibility 
of investment receipts authorized by section 413 (!>) 
(4) (1!) (i) of the Mutual Security Act of 19.54. Ef- 
fected by exchange of notes at Lima March 14 and 10, 
1955. Entered into force March 16, 1955. 

Turkey 

SiippleiMcntal agreement to the agreement of November 

15, 1954 (TIAS 3179) for the exchange of commodities 
and the sale of grain. Signed at Washington April 28, 
1955. Entered into force April 28, 1955. 



' Not in force. 



PUBLICATIONS 



Recent Releases 

For sale hy the Superintendent of Documents, U.S. Oov- 
ernment Printing Office, Washington 25, D. C. Addresi 
requests direct to the Superintendent of Documents 
except in the case of free publications, which may 6( 
obtained from the Department of State. 



TIAS 3014. Pub. 5624. 10 pp 



786 



Air Transport Services. 

10^. 

Agreement between the United States and