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rHE DEPARTMENT OF STATE

Vol. XXXVI, No. 927

AprU 1, 1957

ICIAI

KLY RECORD

TFn STATES
tiUN POLICY

THE UNITED STATES LOOKS AT THE MIDDLE

EAST • by Deputy Under Secretary Murphy 515

THIRD MEETING OF THE COUNCIL OF THE SOUTH-
EAST ASIA TREATY ORGANIZATION

Firuil Communique 527

Statements by Secretary Dulles 529

Secretary Dulles' News Conference, Canberra, March 13 . . . 533

UNITED STATES REPLIES TO SOVIET PROPOSAL

FOR DECLARATION ON MIDDLE EAST 523

COIMPLIANCE WITH U.N. RESOLUTION CALLING
FOR WITHDRAWAL OF ISRAEL FROM
EGYPTIAN TERRITORY

Statement by Ambassador Henry Cabot Lodge, March 8 , . . 543
Statement by U.N. Secretary-General Dag Hammarskjold,

February 22 544

Report of U.N. Secretary-General, March 8 544

For index see inside back cover

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 927 • Pubucation 6471
April 1, 1957

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Note: Contents of this publication are not
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J

The United States Looks at the Middle East

by Deputy Under Secretary Murphy '

I am indeed grateful for this opportunity to ap-
pear here at Georgetown University and before
this forum for a discussion of some of the prob-
lems of the Middle East. The issues which have
arisen during the last 6 months within that area
have engaged the loyalties and sympathies of the
American people. There has been a high degree
of involvement of local American interest in the
solutions of the problems posed by the Middle
East. We of the State Department appreciate a
chance to talk over this situation with an informal
audience such as this and to express our views as
to the best course to follow in the national interest
of the United States.

I am also delighted with the formulation of the
topic for this evening's presentation. It seems
most appropriate to exchange views on the Middle
East at this time in hope that we may achieve
a better understanding of the delicate problems
involved. Georgetown's inquiries into our for-
eign relations are justly famous, and I hope I may
be of even some small assistance to you in your
study of the area.

The United States has vital security interests
in the Middle East. These interests are magni-
fied by our role as leader of the free world.

In the first place, it would be a major setback in
this great struggle if the two-hundred-odd million
Moslems of the area should be persuaded that
they could achieve their destiny as nations under
the sway of international communism. The
Soviet Union has become very active in this region.
Its expansionist purposes are unmistakable.

' Address made at the International Relations Enquiry
at Georgetown University, Washington, D.C., on Mar. 14
(press release 145).

Secondly, the Middle Eastern area specifically
contains perhaps 75 percent or more of the world's
oil resources under its sands. The continuing un-
interrupted flow of this oil is necessary to the
economic and military strength of our European
allies, which in turn is necessary to our own
security. Although we can, as is presently being
demonstrated, temporarily supply our European
allies with their fuel needs, the drain upon the
reserves of the Western Hemisphere over a pro-
tracted period would gi'eatly weaken the free
world.

Finally, the Middle East area itself is of great
strategic geographic importance. It controls
both the land and sea routes linking Asia, with its
raw-material resources, with Western Europe,
which is the major supplier to Asia of manufac-
tured goods essential to its development. It con-
trols the gateway to Africa, with its vast human
and mineral resources, which is just beginning to
play its role upon the world stage.

Hence, the United States must act with a high
degree of responsibility and friendly impartiality
in the clashes of national interests which are keep-
ing the Middle East in a state of turmoil. We
consider the people in the area our friends, and we
want them to remain our friends.

The major internal problem, which over-
shadows every other issue in the area, is the Arab-
Israeli dispute. The creation of the State of
Israel has a significant and illuminating back-
ground. In fact, I should like this evening to
dwell on the origin and causes of some of the situ-
ations we face in the area, in the hope that our
present objectives and courses of action will be
more readily understood.

April 1, 1957

515

Emergence of Nationalism in Middle East

A good starting point is the emergence of na-
tionalism in the Middle East some time during the
latter half of the 19th century. The Ottoman
Empire had by then grown accustomed to its role
as a "sick man." But the forces of nationalism
were already at work among its peoples. A
Viennese journalist, Theodore Herzl, motivated
by the clamor and implications of the Dreyfus
affair in France, decided that the Jewish people
could not achieve a secure status until they had
become identified with a national entity. He
succeeded in restating the age-old religious long-
ing of the Jews to return to the Holy Land in
modern nationalistic terms.

These same forces were at work among the
Arab peoples of the Ottoman Empire. The brief
emergence of Egypt under Muhammad Ali in the
early years of the century as a power which could
challenge the world order had given new hope to
those who dreamed of the days when an Arab
caliph had ruled a united Islam. We Americans
had more than a little to do with the emergence of
an Arab nationalism which thought and spoke in
the popular terms of the day. It was in our edu-
cational and missionary institutions in the area
that the Arabic language had a rebirth and where
our political philosophy received eager acceptance.

In the course of World War I, the Allied Pow-
ers sought the support of both of these national-
isms. The appeal to Jewish nationalism took the
form of the Balfour Declaration of November 2,
1917. The appeal to the Arabs took the form of
assurances and encouragement to the Sharif of
Mecca, Protector of the Holy Places of Islam, who
revolted against his Turkish overlords in the hope
of assuming a new caliphate. The romantic fig-
ure of Lawrence of Arabia stalks through these
pages of history.

At the close of the war, the British found them-
selves in possession of a mandated area handed
them by the League of Nations. This area ap-
peared to be almost as barren in resources as it
was rich in religious and historical tradition and
controversy. It was soon divided into two sepa-
rate entities : Palestine and Transjordan.

Transjordan was brought into being as a fief
for the late King Abdullah. Abdullah was one
of the sons of the Sharif of Mecca. His brother,
Feisal, who had been proclaimed as King of Syria,
was beleaguered by the French in Damascus, who

were attempting to assert the authority given
them by the League for their mandate in Syria
and Lebanon. Abdullah's presence in Syria j
would have been an embarrassment to the British ;
so it was decided that he should be asked to tarry
on his journey and remain in Transjordan, where
a state of his own would be established. Winston
Churchill has told how he created Transjordan
one Sunday afternoon while he was in Jerusalem.
All this came to pass, and during King Abdullah's
lifetime the State of Transjordan was a model of
the close collaboration between the Arabs and
Great Britain. The Arab Legion was created and
maintained by the British and proved its worth
when it assisted Allied forces in putting down a
revolt in Iraq in 1941.

In Palestine, that portion of the mandate to the
west of the Jordan Kiver, there was rapid eco-
nomic and social development as Jews from all
over the world came to take on the task of drain-
ing the marshes and making the desert bloom. It
soon became apparent, however, that reconcilia-
tion of Jewish and Arab nationalism in this state
would not be an easy task. There was bloodshed
between Arabs and Jews almost from the very
beginning of the mandate. Indeed, the longest
period of real tranquillity in Palestine was the
duration of World War II, when the magnitude of
events on the world scene made pointless the local
conflict.

Partition of Palestine |

At the close of World War II, violence again
erupted in Palestine. Britain made a final su-
preme effort to reach an amicable settlement be- .
tween Arabs and Jews. When this failed, Britain \
decided to turn the problem over to the United
Nations. After dispatching a commission to the
field to study the problem and make recommenda-
tions, the United Nations General Assembly voted
in November 1947 to recommend both the partition
of Palestine into an Arab and a Jewish state, to
be politically independent but in economic union,
and the territorial internationalization of Jerusa-
lem. Jewish leaders decided to accept this recom-
mendation, although it fell considerably short of
their expectations, and proclaimed their state in
May 1948. Arab leaders both within and outside
Palestine decided to contest it by force.

The United States had strongly supported the
partition resolution in the General Assembly and

516

Department of Stale Bulletin

■was deeply concerned that a peaceful solution
should be reached in the Palestine problem.
Fighting broke out in 1948 and continued through
several broken United Nations truces until General
Armistice Agreements were signed in accordance
with a Security Council directive in 1949. These
agreements were to have been but the first step
in a process leading to a peace arrangement be-
tween the parties brought about under United
Nations auspices. They have remained to this day
as the only international agreements regulating
relations between Israel and the neighboring Arab
States. Ralpli Bunche [Under-Secretary of the
United Nations], who is back in the area today,
had a great deal to do with the successful nego-
tiation of these agreements.

The territorial situation emerging from the
Armistice Agreements was quite different fi-om
that envisaged in the partition resolution. Israel,
which had surprised the world with its military
prowess, was in occupation of considerably more
territory than that originally allotted to the Jewish
state. Transjordan, whose Arab Legion was by
far the most effective Arab fighting force, gained
possession of the Judean hills stretching from
Nabhis to Hebron. This territory was formally
incorporated into Transjordan, which had mean-
while in 1950 changed its name to the Hashemite
Kingdom of Jordan. The proposal for an in-
dependent Arab state in economic union with the
Jewish state fell by the wayside, as did that for an
internationalized Jerusalem. Jerusalem has been
divided and is imder de facto occupation by the
Israelis in the New City and by the Jordanians in
the Old.

These events were bound to have tremendous
repercussions in Jordan, which was no longer a
quiet and well-ordered Arab entity oriented toward
the British. Its population was trebled overnight,
and one-third of its inhabitants were Arab refugees
subsisting on a United Nations dole. The new
Jordan faced its relationship with Britain with
distrust arising out of the Palestine conflict. Like
other nations in the region, Jordan desired to assert
full sovereignty and independence and to cast off
longstanding ties with larger powers in the "West.
The assassination of King Abdullah, a stanch
ally of Britain, in 1951, the dismissal of Lieutenant
General Glubb and other Arab leaders from the
Arab Legion in 1955, the anger at Britain for hav-
ing undertaken military operations against Egypt,

all hastened the desire to minimize British influ-
ence. The Anglo-Jordan Treaty of 1948, under
which the British guaranteed Jordan's territorial
integrity and subsidized Jordan's defense estab-
lishment, was terminated yesterday. Jordan,
which recognizes its lack of economic viability and
acknowledges its need for foreign aid, has sought
such assistance from the Arab states of Egypt,
Sj'ria, and Saudi Arabia. Jordanians have also
exj>ressed the hope that United States aid can be
increased. It is clifEcult to see a secure and pros-
perous future for Jordan in tlie absence of an
Arab-Israel settlement.

Since 1948 Israel has seen a trebling of popu-
lation and considerable economic development.
Economic progress has been impaired by the lack
of political stability in the area, however, and
Israel daily encounters the obstacles to progress
created by continuing Arab hostility. Israelis
have had to become used to border incidents, eco-
nomic warfare, and lack of any kind of relations
with their immediate neighbors.

It might be worth while to add a footnote to this
historical excursus about how and why the Gaza
Strip came into being. The territory of the town
of Gaza and the land to the north and south of
it were allotted, under the 1947 partition resolu-
tion, to the Arab state. "Wlien Egypt undertook
military operations in Palestine in 1948, it en-
tered Palestinian territory at the old international
frontier to the south of Gaza. The end of the
hostilities and the signing of the armistice saw
Egypt remaining in occupation of the 5-by-25-
mile strip of territory along the Mediterranean
with Gaza roughly at its center. Egypt continued
to occupy this territory by virtue of the Armistice
Agreement. Egypt never claimed sovereignty
over the Strip but said that it was held in military
occupation subject to an ultimate peace settlement
which would secure the rights of the Palestine
Arabs. In addition to the indigenous population
of about 60,000, there are 200,000 Arab refugees
who fled from what is now Israel. So even before
the creation of the United Nations Emergency
Force, the United Nations had considerable re-
sponsibility for the care and subsistence of at
least two-thirds of the population of Gaza.

The New Regime in Egypt

Egypt is the spearhead of Arab hostility to Is-
rael. Egypt, too, has undergone important

April ?, ?957

517

changes in the recent past. New revohitionary
leaders forced the abdication of King Farouk in
1952 and proclaimed a republic in 1953. The new
regime set itself with enthusiasm to the task of
improving basic economic conditions. Large es-
tates were broken up. Attention was given to ir-
rigation projects to reclaim desert lands. The
passage of legislation to encourage foreign in-
vestment suggested realistic appraisal of the
country's need of outside help. There were even
faint glimmers of hope for a realistic and rational
approach to the intensely emotional problem of
Palestine.

To this seemingly devoted leadership the
United States offered encouragement and sup-
port. We sought to promote understanding and
conciliation between Egypt and Britain in the
longstanding dispute over the British-held base in
Suez. Without taking sides or pressuring either
party, we worked to keep open the avenue of con-
ciliation, and just before the second anniversary
of the regime in Egypt agreement in principle
was announced on this thorny problem. We of-
fered technical assistance to stimulate the pace of
development and economic aid, in keeping with
the country's capacity to absorb it, to accelerate
the rate of economic growth. In the last 5 years
we have provided Egypt with nearly $90 million
of assistance in various forms.

Recognizing the country's need to strengthen its
internal security and keep its defenses in readi-
ness, the United States indicated willingness to
make reasonable quantities of defensive arms
available to the new government. The Egyptian
leaders studied a gi-ant-aid agreement which we
were prepared to enter into and decided against it.
They asked to buy arms. They found difficulty
in paying for them, and we agreed to consider al-
ternative financing arrangements. We were un-
derbid in terms of financing. Egypt bought So-
viet arms in exchange for Egyptian cotton — cot-
ton, a commodity bulging from our own ware-
houses, a commodity we could not consider im-
porting in quantity.

Although deeply concerned at this evidence of
new Soviet mischief in the area, we sought to con-
tinue fruitful cooperation with Egypt in other
spheres. Egypt's wish to store within its own
borders its share of the untapped waters of the
Nile received our sympathetic consideration. We
were not unmindful of some expert opinion that

storage in the humid upper reaches of the Nile —
outside Egypt's boundaries — might involve less
loss by evaporation. We were not unmindful of
the rights of other riparian states, and our offer
of help for the Aswan Dam presupposed agree-
ment on division of waters. But, basically, it
looked as though the Egyptian leadership was
fully determined to commit its resources to the
Pligh Dam. Their determination seemed to be a
driving economic force in itself. We offered to
help. In reply Egypt asked that our help be
given on a basis which caused us misgivings. We
reluctantly reached the conclusion that other com-
mitments had undermined the possibility of a
sustained economic effort on Egypt's part, without
which our assistance would be unavailing.

We continued willing to assist on less ambitious
projects. We announced our decision regarding
the Aswan Dam on July 19 last year. On July 26
Nasser nationalized the Suez Canal Company.

The stubborn, unpleasant realities — the eco-
nomic facts of life — have not been conducive to the
kind of relationship we had hoped to develop. We
felt these economic problems could not be gain-
said. Our views were received with suspicion and
misunderstanding by colonial-sensitive Arab
opinion as being animated by selfish interest.

Our hopes for cooperation were dimmed by a
historical legacy which for the most part involved
nations other than the United States. This is
ironic but basic to our situation in Egypt, in SjTia,
and to a lesser degree in other parts of the region.
Happily this is not the case in Lebanon, a sophis-
ticated and advanced nation with which we main-
tain friendly relations, nor is it true in Saudi
Arabia, Iraq, and some other countries.

The Arabian Peninsula

As we move away from the countries at the core
of the Arab-Israel dispute, the focus of our inter-
est and concern in the Middle East shifts. The re-
cent visit of King Saud was symbolic of the spot-
light being thrown increasingly on one of the least
known parts of the Arab world, the Arabian pen-
insula. This peninsula, approximately one-third
the area of the United States, contains a variety of
peoples, lands, resources, and historical back-
grounds. It is the cradle of the modern Arab peo-
ple. It has in the past been the home of fabled
rulers, like the Queen of Sheba, and the spices and

518

Department of State Bulletin

incenses of Biblical times probably came from its
highlands.

Since the consolidation of the Saudi Kingdom
in 1925, Saudi Arabia has been the largest and in
many ways the most important of the states of the
peninsula. The United States has had relations of
special importance with this Kingdom since the
1930's and is currently negotiating an agreement
which will provide for further cooperation. King
Saud is an important Arab leader and as Keeper
of the Holy Shrines at Mecca and Medina is a
figure of growing significance in the Arab world.
Firmly committed against communism, he follows
his father's traditional policy of close friendship
with the United States.

The other major independent kingdom in the
peninsula is the highland state of Yemen in the
southwestern corner of the peninsula. It is the
source from which the ancestors of the modern
Arabs migrated, and its ruins give evidence that
gi-eat kingdoms once existed in its mountains.
Today this ancient land is seeking to develop its
resources and to modernize its cities. A conces-
sion was granted in 1955 to an American company
to explore for minerals. The Imam has also been
tempted by liberal offers of aid from the Soviet
bloc, and Soviet and satellite experts have re-
cently begun to arrive. The Soviet assistance has
included at least one shipment of satellite arms
sought by the Imam to strengthen Yemen in its
dispute with the British over the Aden Protec-
torate.

The Aden Protectorate was formed through a
series of treaties by which the British maintain
political control over some 40 minor principali-
ties in the hinterlands to the north and the east
of the Crown Colony of Aden. An unsettled
border between these principalities and Yemen,
tribal difficulties in the area, and Yemeni claims to
much of the Protectorate have resulted in spas-
modic outbursts of violence along the border. Re-
cently, these have increased in severity, although
there is hope that talks may take place between
the two parties which will lessen the current
tension.

To the east of Aden lies the Hadhramaut, a
highland area which was the ancient source of
frankincense and myrrh. This also forms a part
of the Aden Protectorate, but its ties, strangely
enough, are primarily with India, where many of
its people have gone as merchants.

In the southeastern corner of the peninsula lies
Muscat and Oman, a little known independent
principality with which the United States has had
very long relations. One of the first treaties
signed by the United States in Asia was with the
Sultan of Muscat in 1832. The United States had
a consulate in Muscat for over 60 years and, in
view of the imjiortance of the area, is now consider-
ing the reestablislunent of a post there.

To the north lies a series of small principali-
ties under British protectorate known as the
Trucial States, named from the truce arrange-
ments made with these states in the 19th century
in order to halt attacks by pirates on British ships
in the Persian Gulf. One of the Trucial States,
Abu Dhabi, together with the Sultan of Muscat,
is involved in a dispute with Saudi Arabia over
the sovereignty of a key transportation and trade
center in southeastern Arabia, the Buraimi oasis.
The United States has exercised informal good
offices seeking a solution to this problem and is
hopeful that, when diplomatic relations are again
established between Saudi Arabia and the United
Kingdom, which represents these two states,
further talks can be held.

On the western shores in the Persian Gulf are
three states which are better known to the world
because of their oil resources. The largest and
richest is Kuwait at the north end of the Gulf,
where oil production exceeds that of any other
state in the Middle East. The Shaikli of Kuwait
was recently described as the biggest oil man of
them all. Kuwait, like the other two states,
Bahrein and Qatar, is bound by treaty relation-
ship to the United Kingdom, which provides for
their foreign affairs and defense.

This vast peninsula has been thrust into promi-
nence not only by fabulous resources but by the
important role its leaders are beginning to play
in the events of the area. We can anticipate that
in the days to come the strange names of places
and people will become increasingly known and
important to us in the developing United States
relationships to the peoples of the Middle East.

Iraq lies at the northeast comer of the Arabian
peninsula and linlvS it with Iran and South Asia.
Iraq has been the one Arab nation which has par-
ticipated in Western-sponsored collective security
arrangements. It has been genuinely concerned
with the Communist threat and seeks United
States assistance to strengthen its defenses.^

April 1, 1957

519

Prime Minister Nuri Al-Said has since 1932 been
the iron man of Iraqi politics and has led the
country in significant economic and social develop-
ment. Recent events liave tested the stability of
the Iraqi Government, but its anti-Ck>mmunist
stand and friendsliip with the United States have
not been impaired. We have provided Iraq with
substantial assistance, mostly military, to assist
it in presei-ving its security and stability.

The Northern Tier

The Arabian peninsula and the Palestine area
are insulated against the direct tlirust of Com-
munist imperialism by two very important na-
tions— Turkey and Iran. These two, together
witli Iraq and Pakistan, have consistently demon-
strated their confidence in the principle of collec-
tive security and form a bulwark against Soviet
penetration.

Shortly after World War II, the Soviet Union
souglit to gain a military foothold in northern
Iran and to establish a puppet government there.
The Soviet Union was forced to withdraw by
Iran's strong protests and by pressures exerted by
the United Nations, with the United States play-
ing a leading role. Parallel with these pres-
sures on Iran the Soviet Union resimied its tra-
ditional attempts to force Turkey into yielding
control over the Dardanelles and the Bosporus.
Aggressive Soviet actions in Turkey and Greece
were successfully met and overcome by the mili-
tary and economic support furnished under
United States policies adopted in 1947.

Turlvey and Pakistan were among the first states
in the Middle East to work actively for the realiza-
tion of collective defense in the Middle East. In
April 1954 they signed an agreement of coopera-
tion and consultation, followed in February 1955
by the conclusion of an agreement with similar
objectives between Turkey and Iraq. The latter
agreement, to which Pakistan, Great Britain, and
Iran eventually adhered, is familiarly known as
the Baghdad Pact, and it represents the most ef-
fective step thus far taken by tlie nations of the
Middle East to fill the deficit of power in that
troubled area.

Not only have Turkey and Pakistan taken the
initiative in the Middle East. Each is contribut-
ing to tlie collective defense of a wider area, Tur-
key as a member of tlie North Atlantic Treaty
Organization, Pakistan as an original signatory
of the Southeast Asia Treaty Organization.

In short, these countries have shown in a variety
of ways that they share with us certain basic
assumptions about the need for collective measures
of defense to deter aggression by international
communism. This fact, as much as any other,
has helped sliape the close relations that exist be-
tween the United States and these nations of the
"northern tier." The United States has extended
military and economic aid to Turkey, Iran, and
Pakistan for some years, the total amount being
well over $2 billion. United States aid has lielped
them achieve significant economic gains while at
the same time strengthening the effectiveness of
their military defenses. These countries are im-
portant allies to the United States. Their in-
dependence and stability are of major interest to
us.

Independent Libya

On the western flank of the Middle East is
Libya, a relatively new country strategically
placed in North Africa. The United States has
supported and assisted Libya on political, eco-
nomic, and military fronts from the first day of
its independence in 1951. In 1949 we joined a
large majority of the members of the U.N. General
Assembly in approving a resolution calling for
Libya's independence prior to January 1, 1952.
Under authority of this resolution, Libya declared
itself free and independent on December 24, 1951.

Of the total Libyan revenues of $30 million in
fiscal year 1956, $12 million, or 40 percent, will be
U.S. aid. Our surplus agricultural products,
valued at approximately $10 million since January
1954, have played an important role in alleviating
hunger and preventing famine conditions in
Libya. United States technical assistance to
Libya since fiscal year 1954 has totaled almost $7
million. In addition, the United States has con-
tributed over 50 percent of all funds expended by
the United Nations for technical assistance in the
country.

Under terms of the Mutual Security Act, the
United States has programed militai"}' assistance
for Libya and will equip a 1,000-man increment of
the Libyan Army.

Libyan foreign policy has shown a marked
friendliness to the United States and a growing
understanding and appreciation of tlie threat of
international communism. By agreement with
Libya, the United States operates a major air
base at "Wlieolus Field, near Tripoli. In 1956

520

Department of Stale Bulletin

Libya turnexi down Soviet offers of economic and
military assistance but peinnitted establishment of
diplomatic relations. Libya also evicted the
Egyptian Embassy's military attache last fall for
activities considered inimical to Libyan
sovereignty.

We are proud of the progress being made by
Libya and happy that we are able to assist. The
orderly development of the new states of Africa
to political stability and economic well-being is a
source of gratification.

Major Elements of U.S. Policy

The main purpose of this examination of the
individual countries and specific problems of the
Middle East has been to define the situations we
are working with and to point up the major ele-
ments of our policies. To imderstand the really
critical problems being headlined today, it is
essential to have a good grasp of the background
and the ramifications of the issues affecting the
whole area.

TVIiere do we stand on these really critical prob-
lems ? I want to refer in particular to the Arab-
Israeli dispute, the Suez Canal, and Soviet efforts
to penetrate the region.

The Arab-Israeli issue has been a United Na-
tions problem from its very beginning. We are
hopeful that the United Nations will remain the
forum because we believe that the nations involved
are responsive to the ideals of peace with justice.
Prior to the events of last October and November,
the tempo of events had been building to fever
pitch. We had recognized that President Nas-
ser's nationalization of the Suez Canal Company
and, more particularly, the manner in which this
was announced had provoked the British and
French and alarmed the Israelis. But at the same
time we were convinced that the type of action
they chose to take in the last days of October and
the early days of November was in error. Fur-
thermore, and more importantly, the painstaking
beginnings which had been made through the
United Nations toward the establishment of a sys-
tem of world order were being jeopardized by this
resort to force when the possibilities of negotia-
tions had not been completely exhausted.

In the historic debates which took place in the
United Nations around the clock through those
crowded days of early November it became clear
that there was a realization that a large portion
of the responsibility for the situation which had

arisen rested upon the United Nations for its fail-
ure to come to grips with the basic problems which
lay at the root of the conflict. The United States
emphasized its intention to take advantage of this
fluidity in the situation by introducing two resolu-
tions on November 3 ^ in the United Nations Gen-
eral Assembly which revealed our determination
to come to grips with the basic issues.

Out of this debate came a very significant action.
The United Nations was enabled to create a force
in being, the United Nations Emergency Force, in
record time. For years the possibility of estab-
lishing a United Nations police force to enforce
decisions of the United Nations had been debated
in a desultory fashion, but it too had become a
casualty of the cold war until the crisis created in
the Middle East made the members put aside their
hesitation. The Unef under its present authority
has a limited mission — to oversee the withdrawal
of British, French, and Israeli forces from
Egypt — and it is in Egypt with the agreement of
the Egyptian Government. This phase of its mis-
sion has now largely been completed, but there is
earnest consideration being given, under a resolu-
tion of February 2,^ to authorizing the force in
being to act as a deterrent to the resumption of
hostilities and as a means of tranquilizing the area
while new approaches are sought toward an
eventual settlement. The principle which was at
stake was the authority of the United Nations and
its ability to take a constructive and fair approach
in creating and maintaining conditions under
which the conflict of national interests between the
parties concerned could be worked out.

To enable this situation to move forward along
the lines which all the members of the United
Nations except the Soviet bloc seemed to desire, it
was a prerequisite that the Israelis withdraw from
Egypt without having achieved political ad-
vantages which Israel did not possess before it
invaded Egypt. On the other hand, Israel had
some very legitimate and genuine concerns for its
own security, particularly regarding free passage
through the Straits of Tiran and the danger of
renewed fedayeen raids from the Gaza Strip.
These two aspects of the problem have now been
fully brought to the attention of the world public,
and a number of states, led by the United States,
have made unilateral declarations of their own

' U.N. docs. A/3272 and 3273.

= Bulletin of Feb. 25, 1957, p. 327.

AptW 1, 1957

521

policy in regard to these issues. These have, in
turn, enabled Israel to withdraw in the confidence
that the world community would now earnestly
direct its attention to remedying the conditions
which led to the outbreak of the conflict.

The Suez Canal problem, which became linked
in its latter stages with the question of Israel
withdrawal, is also essentially a problem for the
United Nations. The only existing unanimously
approved agreement by all the parties concerned
is embodied in the Security Council resolution of
October 13, 1956,* which sets forth the six prin-
ciples under which the parties concerned agree to
work out a final arrangement for the future opera-
tion of the canal. The prospects of the canal
being opened in the near future under an interim
operating arrangement without prejudicing the
final settlement seem favorable. The difficulties
of working out detailed implementation of the six
principles should by no means be discounted. But
in the light of the new determination of the
United Nations and the persistent and tireless
efforts of Secretary-General Hammarskjold to
find a solution which can be accepted by all the
parties, the United States is convinced its best
hope for achieving the objectives of the free
world in this respect lie within the United
Nations.

Irresponsible Behavior of Soviet Union

Tlie record of the events of the last 6 months in
the Middle East reveals a high degree of irrespon-
sible behavior by the Soviet Union. The repeated
attempts to take advantage of this situation to
achieve political profit with the Arabs or to exer-
cise pressure upon Israel, Britain, and France
after they had already agreed to withdraw from
this ill-fated adventure, besides the obvious pur-
pose of distracting attention from their brutal
attack on Hungary, can lead one to conclude only
that the Soviet Union's objectives in the area are
to weaken it to the maximum extent possible and
to keep it in a constant state of turmoil and chaos.

To deal with this problem, which relates to the
area as a whole, we Iiave devised the Middle East
plan or American Doctrine for the Middle East as
embodied in the message of President Eisenhower
to the Congress of January 5, 1957.= The plan
aims to do three things, each of them with the con-
sent of the states involved. First, if the states of

* Ibid.. Oct. 22, 1956, p. 616.
■ Ibid., Jan. 21, 1957, p. 83.

522

the area wish it, we are prepared to strengthen
their internal security and their legitimate na-
tional self-defense through the extension of mili-
tary aid. Secondly, if the states of the area desire
it, we are prepared to cooperate with them in eco-
nomic projects designed to raise the standards of
living and strengthen the stability of the coun-
tries, thereby diminishing the attractiveness of
grandiose offers of economic aid from the Soviets
designed to promote subversion. And thirdly,
we are prepared to use the armed forces of the
United States to prevent direct overt aggression
by forces controlled by international communism.

This proposal has now received strong support
from the Congress of the United States and the
endorsement of a large majority of the representa-
tives of the American people. Ambassador
James Richards left 2 days ago ^ to travel
throughout this area, to explain to the various
governments just precisely in what ways the
American Doctrine for the Middle East could
assist them in strengthening their ability to re-
main free and independent, and to work out
recommendations which would be conducive to
that end. I

In our judgment the major threat to the Middle
East is represented by the forces of international
communism, and we feel deeply that we must
never lose sight of this danger. The United
States has a vital stake in keeping the Middle
East from falling under Soviet domination. In-
deed we must not allow the situation there to de-
teriorate to a point where the nations of the area
in desperation would turn to the Soviet Union for
help. Wliile internal quarrels may engage our
emotions and loyalties, we must not permit these
factors to influence our exercise of great and
grave responsibility as a leader of the free-world
nations or to color the sense of justice and
friendly impartiality which is so deeply rooted in
the traditions of the American people.

We are taking important and constructive meas-
ures in the Middle East. The problems ahead
are, to say the least, formidable and will require
the very best diplomacy of which we are capable.
Nevertheless, progress has been made.

We of the Department of State thank George-
town University and the International Eelations
Enquiry for this chance to talk with you. We
shall watch with interest the following discus-
sions in this series on tlie Middle East,

' Ibid., Mar. 25, 1957, p. 481.

Department of State Bulletin

United States Replies to Soviet Proposal for Declaration on Middle East

Press release 131 dated March 11

Following is the text of a note delivered
ly U.S. Charge d'Affaires Richard H. Davis to
the Minister of Foreign Affairs, Andrei Gromyko,
at Moscow, March 11, 1957, in reply to a Soviet
note of February 11, 1957, concerning the Middle
East. The British and French Governments
also replied to the Soviet note on March 11.

U.S. NOTE OF MARCH U

The Embassy of the United States of America
presents its compliments to the Ministry of For-
eign Affairs of the Union of Soviet Socialist Re-
publics and, on instructions of its Government,
has the honor to transmit the following communi-
cation in reply to the Ministry's note of February
11, 1957 concerning the Middle East area.

It is noted that the Government of the U.S.S.R.
proposes that the Governments of the United
States, United Kingdom, France and the Union
of Soviet Socialist Republics should, jointly or
separately, proclaim basic principles governing
their relations with countries of the Middle East.

In dealing with this proposal, the United States
Government deems it essential to set forth the fol-
lowing considerations :

The United States adheres and will continue to
adhere to the principles of the United Nations
Charter in its dealings with countries in the Mid-
dle East as elsewhere. Along with the other prin-
ciples of the Charter, it fully supports those
singled out in the Ministry's note— peaceful settle-
ment of disputes ; non-interference in internal af-
fairs; respect for sovereignty and independence.
It is ready to cooperate with any country, great or
small, sincerely dedicated to carrying them out.
The United States Government feels obliged, how-
ever, to point out that the Soviet Union could
demonstrate its own willingness to carry out the
liigh principles it sets forth by itself respecting

kptW 1, 7957

those U.N. resolutions addressed to the U.S.S.R.
calling for compliance by the U.S.S.R., such as
those relating to its actions with respect to Hun-
gary. Great Britain and France, the other recip-
ients of the Soviet proposal, have just made such
a demonstration as a contribution to world order
in fully complying with United Nations resolu-
tions regarding the withdrawal of their forces
from Egypt.

The form which cooperation in the Middle East
should take — with specific reference to the pro-
posal of the Soviet Government — is a matter for
decision in consultation with the Middle Eastern
states. Because of its respect for the iirinciple
of non-interference in the affairs of other nations,
the United States would not wish to be party to
an attempt by the great powers, as suggested by
the U.S.S.R., to arrogate to themselves decisions
on matters of vital importance to the nations of
the Middle East; or to prevent those who feel
themselves tlireatened from association of their
own free will with other nations in legitimate col-
lective security arrangements, in accordance with
the provisions of the United Nations Charter.
When it comes, therefore, to such matters as mili-
tary "blocs", the liquidation of foreign bases and
the withdrawal of foreign troops, set forth in the
principles proposed by the U.S.S.R., the United
States Government must point out that the Middle
Eastern states are fully capable of deciding what
cooperative efforts are required to enable them to
play their part in the defense of the area.

The principles in the Soviet note include a caU
for renunciation of arms shipments to the Middle
East. With regard to this point, the United
States Government wishes to make clear that it has
consistently recognized a need on the part of the
Middle Eastern states to maintain a certain level
of armed forces to assure their internal security
and legitimate self-defense and to play their part
in the defense of the area as a whole. The United
States has also consistently sought to avoid an

523

arms race between the Arab states and Israel. In
carrying out its policy with regard to the export
of arms to the Middle East, the United States Gov-
ernment has always kept in mind the need to en-
courage stability and foster progress toward last-
ing peace and security there. It therefore regrets
that the Soviet Government, on the contraiy, saw
fit to effect massive shipments of arms into the area
at a time when regional disputes there had become
sharply exacerbated.

Finally, the Ministry's note talks of economic
cooperation to be carried out, it states, without any
conditions incompatible with the dignity and sov-
ereignty of these countries. The Soviet Govern-
ment ought to be aware that the United States pro-
vides, and will continue to provide, economic as-
sistance only to those Middle Eastern states re-
questing it. No attempt is, or will be, made to
force this assistance on any state, or through it to
seek to impose conditions upon the countries con-
cerned. There is no basis, therefore, for consider-
ing the acceptance of such assistance incompatible
with national dignity and sovereignty.

The Soviet proposal, as a whole, is clearly based
on a false premise. It stems, presumably, from
the distorted interpretation of the nature and pur-
pose of United States policies contained in the
Ministry's note.

Contrary to this interpretation, President
Eisenhower's outline of United States policy to-
ward the Middle East envisages genuine practical
efforts directed toward consolidating peace and
security there in full cooperation with the Middle
Eastern countries concerned. These efforts are
designed to make a full contribution to economic
progress in the area and to help the countries there
maintain their independence.

Also, there is cause for considerable doubt as to
the seriousness of the Soviet Government's invita-
tion to the Govermnent of the United States to
join it in cooperation in the Middle East. It has
been put forward at a time when certain Soviet
official acts and statements suggest that the
U.S.S.R. neither desires nor expects such coopera-
tion. In fact, on the day following the delivery
of its call for cooperation in the Middle East, the
U.S.S.R. engaged once more in vilification of the
United States by introducing into the United Na-
tions a spurious item attacking this Government's
policies in that area. This followed a similar
baseless Soviet item distorting United States poli-

cies toward Eastern Europe.^ Consequently,
there is much reason to question whether the coop-
eration proffered by the U.S.S.R. is intended to
further a mutually desired aim.

On its part, the United States will continue to
work toward peace and greater stability in the
Middle East through the United Nations and
through measures taken at the request of, and in
cooperation with, the states in the area themselves.
It would like to be able to hope that the Soviet
Union would make its own contribution to tran-
quillity there. The United States naturally de-
sires to see friendly relations, based on mutual
respect and confidence, develop not only among
the Middle Eastern states but also between them
and countries outside the area, including the
U.S.S.R. However, as elsewhere, this largely de-
pends on the U.S.S.R. itself. If the U.S.S.R. will
indeed conduct itself in a manner conforming to
the principles it proposes, it will be moving in
this direction and not only make a contribution to
peace in the Middle East but in other areas as
well.

SOVIET NOTE OF FEBRUARY 11

The Ministry of Foreign Affairs of the Union of Soviet
Socialist Republics expresses its respects to the Embassy
of the United States of America and upon the instructions
of the Soviet Government has the honor to communicate
the following:

As a result of the efforts of the peace-loving peoples,
supported by the United Nations, the aggressive actions
against Egypt were liquidated, and favorable circum-
stances have developed and real possibilities have been
Created for insuring peace and also for settling inter-
national problems in the region of the Near and Middle
East.

The liquidation of the hot-bed of war in this region
created prerequisites for strengthening national inde-
pendence, governmental sovereignty and economic de-
velopment not only of Egypt but of all countries of the
Near and Middle East, and also opened the way for broad
cooperation of countries of this region with all countries
on principles of equality among states, formulated in
particular in the decisions of the Bandung Conference.

The peace-loving peoples justly expected that hence-
forth peace in the Near and Middle East would be pre-
served and strengthened, that an end would be placed
to the policy of foreign intervention in the internal affairs
of the countries of this region, that the sovereignty and

' For a statement by Senator Knowland on the Soviet
item on alleged U.S. intervention in Eastern Europe, see
Bxn,LETiN of Mar. 18, 1957, p. 463.

524

Department of State Bulletin

independence of the countries of the Near and Middle
East would be sincerely respected and that the countries
of this region, especially the victim of agfrression —
Egypt — would be given unselfish economic assistance.

However, the period of softening of the tense situation
in this region, regrettably, turned out to be of short
duration and the hopes of the peoples were not realized.

As a result of the unilateral moves on the part of some
powers, the situation in the Near and Middle East in the
recent past has again become seriously exacerbated. This
exacerbation is evoked first of all by the fact that there
are intentions to utilize in a unilateral manner in the
Near and Middle East without the agreement of the
United Nations, armed forces of one of the great powers
at its own discretion for intervention in the internal af-
fairs of this region. There is also in view the granting of
so-called economic assistance to countries of the Near
and Middle East, foisting on them conditions that these
countries reject any kind of ties with specific states —
members of the United Nations — that is, with the ac-
ceptance of political conditions for this "assistance" in-
compatible with the dignity and sovereignty of these
countries and with the high principles of the United
Nations.

It is impossible not to recognize that Implementation
of such a policy in circumvention of the United Nations
would lead to a new dangerous exacerbation of the situa-
tion in this region, which only recently was an arena of
military operations evoked by aggression against Egypt,
and would threaten the cause of world peace.

The mentioned plans are nothing other than a continua-
tion of the policy of creating closed aggressive military
blocs of the type of NATO, SEATO, and the Baghdad
Pact and erection of artificial economic and political
barriers interfering with normal ties among states.

The principle of peaceful coexistence of states regard-
less of differences in their social and state systems is the
basis of the foreign policy of the Soviet Union. It is
known that in establishing its friendly relations with
the Arab States the Soviet Union not only never sought
deterioration of relations with these countries with other
great powers, but on the contrary came out for the neces-
sity of wide international cooperation, came out for the
necessity of guaranteeing durable peace and creating an
atmosphere of trust in the region of the Near and Middle
East. The Soviet Union does not have and does not
aspire to have military bases and any concessions in the
Near and Middle East countries for the purpose of ex-
tracting profits and does not aspire to receive any privi-
leges in this region, since all this is incompatible with the
principles of Soviet foreign policy.

The Soviet Union is vitally interested that peace exists
in the region of the Near and Middle East, situated in the
immediate vicinity of its borders. It is sincerely inter-
ested in strengthening the independence of the countries
of this region and in their economic prosperity.

In the opinion of the Soviet Government, preservation
of peace in the Near and Middle East is a necessary con-
dition not only for the development of Near and Middle
East countries, but also, as recent events have demon-
strated, for providing for the economic welfare of many
other countries.

The necessity of consolidating peace and security in the
Near and Middle East demands broad development of
political, economic, and cultural ties between all coun-
tries, particularly of joint actions, in accordance with
the Charter of the United Nations, of great powers who
bear basic responsibility for the maintenance of peace.

The Soviet Government considers that it would be pos-
sible to secure firm and lasting peace in this region by
means of joint efforts of the great powers — the U.S.S.R.,
U.S.A., England, and France, permanent members of the
United Nations Security Council, if all the above-men-
tioned great powers built their relations with the Near and
Middle East countries on the basis of general principles
of a policy of non-intei-vention in their internal affairs
and respect for their national independence and
sovereignty.

Proceeding from the foregoing, the Soviet Government
proposes to the Governments of the United States of
America, England, and France, to draw up and proclaim
basic principles concerning the question of peace and
security in the Near and Middle East, and of non-inter-
vention in the internal affairs of this region. These prin-
ciples could be laid down as a basis of a joint declaration,
acceptance of which would exclude the possibility of a
dangerous unilateral action of this or that great
power in respect to the Near and Middle East countries
and would help to strengthen peace and security in
this most important region, to develop national economies,
and to consolidafe the independence of these countries.

It goes without saying that the declaration would be
open to adherence by any government interested in peace
and security which desires to build relations with the
Near and Middle East countries on the basis of the prin-
ciples mentioned.

The proposals concerning the corresponding obligations
of the participant powers of the declaration could be im-
mediately brought to the attention of the governments
and peoples of the Near and Middle East countries.

In transmitting herewith the basic theses of a draft
declaration of the four powers — U.S.S.R., U.S.A., England,
and France, proposed by the Government of the U.S.S.B.,
the Ministry of Foreign Affairs would be grateful to the
Embassy of the United States of America for informing
it regarding the acceptability to the Government of the
United States of America of the basic principles presented
in this draft of the declaration concerning the question of
peace and security in the Near and Middle East and non-
intervention in the Internal affairs of the countries of
this region.

The Soviet Government would also have no objections
if the Governments of the United States of America,
England, France, and the Soviet Union issued separate
declarations, identical in content and based on the prin-
ciples set forth in the enclosed draft, on their relations
with the Near and Middle East countries.
CAttacbment)

DRAFT DECLARATION

Draft of the basic principles of the declarations by the
Governments of the U.S.S.R., the United States, Britain,
and France regarding the question of peace and security

April 1, 1957

525

in the Near and Midflle East and noninterference In
the internal alTairs of the countries of this region.

Moscow, February 11, 1957.

The basic principles of the declaration by the Govern-
ments of the U.S.S.R., the United States, Britain, and
France on the questions of peace and security in the Near
and Middle East and noninterference in the internal
affairs of countries of this area :

The Governments of the U.S.S.R., the United States,
the United Kingdom, and the French Republic, guided by
lofty peace-loving aims and the principles of the United
Nations expressed in its Charter, declare their agreement
that at the basis of their policy in respect of the countries
of the Near and Middle East lies the aspiration to estab-
lish peace and security in the Near and Middle East and
in the whole world; acknowledge and respect the lofty
principles of relations between states formulated at the
Bandung Conference of Asian and African Countries;
are striving to create favorable conditions for the
strengthening of the national independence and national
sovereignty of the countries of the Near and Middle East;
express a sincere desire to contribute disinterestedly by
common efforts to the economic development of the coun-
tries of this area, and are in this proceeding from the
fact that the natural wealth of the underdeveloped coun-
tries is the inalienable national property of the peoples
of these countries, which have the full right to dispose of
and use it in the interests of the development of their
national economy and progress.

The Governments of the U.S.S.R., the United States,
Britain and France wish to contribute to the all-around
development of economic, business, and cultural relations
of the countries of the Near and Middle East on the basis
of equality and mutual advantage for all countries. They
are of the opinion that wide economic and trade relations
of the countries of that area are in accordance not only
with the interests of these countries but also with the
interests of securing economic prosperity for other coun-
tries of the world. They recognize the need for a peace-
ful settlement of all international problems and questions
relating to the Near and Middle East, by way of negotia-
tions.

Being aware of the importance of the responsibility
which they carry for the maintenance of peace and
security throughout the world, the Governments of the
U.S.S.R., the United States, Britain, and France pledge
themselves to follow in their policy toward the Near and
Middle East the principles stated below :

1 — The preservation of peace In the Near and Middle
East by settling outstanding questions exclusively by
peaceful means and by the method of negotiations ;

2 — Noninterference in the internal affairs of Middle
Eastern countries, and respect for their sovereignty and
independence ;

3 — Renunciation of all attempts to involve these coun-
tries in military blocs with the participation of the Great
Powers ;

4 — Liquidation of foreign bases and withdrawal of
foreign troops from the territory of Middle Eastern
countries;

526

5 — Reciprocal refusal to deliver arms to Middle Eastern
countries ;

6 — Promotion of the Middle Eastern nations' economic
development without attaching any political, military, or
other terms incompatible with the dignity and sover-
eignty of these countries.

The Governments of the U.S.S.R., the United States,
Great Britain, and France express the hope that other
states, in their relations with Middle Eastern countries,
will adhere to the same principles.

Ambassador Richards Leaves
for Middle East

Followmg is the text of a statement made hy
Ambassador James P. Richards., Special Assist-
ant to the President, at Washington National Air-
port on March 12 on his departure for the Middle

East}

Press release 132 dated March 11

President Eisenhower has asked me to visit the
nations of the Middle East to present and discuss
his proposals to promote peace, freedom, and eco-
nomic well-being of the area. I feel honored by
his request and undertake this mission with a sense
of the very great responsibility it involves.

The President is seeking through this program
to make an important contribution to the security
and stability of the independent nations of the
Middle East who wish our cooperation. I share
his hope that full explanation and discussion of
the program will demonstrate the close identity of
interests between Middle Eastern countries and
my own.

It is only natural that a new initiative such as
the President's may not be completely understood
in the first instance and may even be misinter-
preted in some quarters. I shall try to remove
such misunderstandings if any have arisen.

The determination of the United States to assist
in the maintenance of the independence of free
nations, including those of the Middle East, has
been fully demonstrated. My colleagues and I
begin this mission proudly conscious of recent
American leadership giving practical effect to
that determination.

The strong support of the Congress for the
President's program once again gives assurance
tliat the American people hold out a hand of

' For background, see Bulletin of Mar. 25, 1957, p. 4S0.
Department of State Bulletin

friendship to the historic lands and peoples of
the Middle East. It is the American hope that
all governments will work actively for freedom
and stability in a peaceful world.

In keeping with the spirit of the President's
proposals, discussions will be held only with gov-
ernments who wish them, and we will not try to
force our views upon others. The President and
I do not look upon this mission as the inaugura-
tion of a vast new aid program. We do believe

that the greater flexibility which the Congi-ess has
approved in the use of funds will enable us to
undertake some new and more effective programs
which will materially contribute to the strength-
ening of the area.

In our preparation for this important mission,
we have deeply appreciated the support and good
wishes of the American people and of those in
other lands. Our inspiration and our purpose
are strong. We shall do our best.

Third Meeting of the Council of the Southeast Asia
Treaty Organization

Folloio-ing is the text of the final communi-
que issued at the close of the third annual meeting
of the Council of Ministers of the Southeast Asia
Treaty Organization, held at Canberra, Australia,
March 11 to 13, together with three statements
Tnade iy Secretary Dulles at the meeting and the
transcript of a news conference held iy Secretary
Dulles at Canberra on March 13.

FINAL COMMUNIQUE, MARCH 13

Press release 141 dated March 13

Plans to consolidate and enhance the progress
made in preserving the freedom of all countries
in Southeast Asia have been agreed to by the
Seato Council at its third meeting, held under
the chairmanship of Mr. K. G. Casey, Minister
for External Affairs of Australia.

These plans provide for :

Maintenance of the defensive capacity of Treaty
members to deal effectively with armed aggres-
sion.

Extension of the program to detect, appraise,
expose and combat subversion directed from with-
out.

Development of the economic resources of
Treaty members, particularly the Asian member
states, by measures inside and outside Seato.

AprW 1, 1957

Defense Plans

The Ministers believe that while the immediate
military threat to peace in Southeast Asia has
diminished, the forces of international Commu-
nism are still working for the ultimate objective
of world domination.

The Council noted that in Asia the Communist
so-called peace front is in reality a front of mil-
lions of armed men. The military strength of
Communist China and of North Viet-Nam is con-
tinually being increased.

In the circumstances the Council agi-eed that
Seato could not relax its vigilance and must main-
tain its capacity to deter and repel aggression. In
the face of the threat which is not itself static,
the Seato nations by their united efforts are con-
tinually increasing and adapting their capacity
to deal with it. If the Communists have chosen
for tactical reasons to exert their pressure by other
than military means for the present, this does not
mean that they would not attempt to exploit any
weakness in Seato military preparedness if the
opportunity came.

As a result of the work of the military advisers
over the past year, Seato Governments are agreed
upon the nature of the Communist threat in the
Treaty area and the kind of military measures
which would be necessary to defeat it.

Military planning is a continuing process and

527

will be helped by the setting-up of a pennanent
military planning office at Bangkok with staff
representing all member countries.

Close cooperation among the forces of the mem-
ber countries is being assisted by realistic train-
ing exercises arranged by the Seato military ad-
visers.

Anti-Subversion Program

The Council believes that the military threat
to the region is deterred by the very existence of
Seato and the collective defense represented by
its members. The emphasis in Communist and
Communist-inspired tactics in the area has there-
fore continued to move from the open threat of
force to more flexible tactics of non-violent pene-
tration and undermining of non-Communist states
still accompanied in some cases by aimed insur-
rection.

Believing that public knowledge of these
tactics — of how and where subversion is occur-
ring— is an essential prerequisite of effective ac-
tion against them, the Council agreed to direct its
civil organization to intensify its work of identi-
fying all phases of subversive tactics; to make
known its findings amongst member governments ;
and to expose them to the scrutiny of public
opinion.

With this object the Council approved specific
projects for the exposure of these activities. Basic
material for these projects will come from analy-
ses by the Committee of Security Experts and
from information provided by the Seato Ee-
search Service Center and by member govern-
ments. The Council recognized that in counter-
ing subversion the primary responsibility rests
with each government, aided as necessary by its
friends. But an important supplementary role
can be played by Seato, and decisions made by
the Council at its present meeting will make that
role more effective.

Economic and Social Progress

The Council discussed economic activities re-
lating to Article III of the Treaty.^ The repre-
sentatives of Pakistan, the Philippines, and Thai-
land drew attention to the economic problems in
their countries requiring cooperative action with
other members, and the Council discussed what

' For text, see Buixbtin of Sept. 20, 1954, p. 393.

528

were the most appropriate arrangements by which
these problems might be resolved.

Seato expert Committees have recommended
specific projects to assist in relieving the economic
burden of defense and to make a contribution to-
wards the continuation of economic development
under Seato's protective shield. Council mem-
bers undertook to consider the carrying out of
these recommendations.

The Council noted with satisfaction the prog-
ress made in the economic development of Asian
member states. The Council also noted that a
number of countries, particularly the United
States, were providing considerable economic as-
sistance bilaterally as a direct contribution to
treaty objectives. In addition to these bilateral
programs, some assistance is being provided spe-
cifically under the auspices of Seato. For ex-
ample, the Australian Government is thus pro-
viding 2 million pounds.

The Council decided that Seato cultural activi-
ties should include encouragement and assistance
to national activity in this field. It urged member
governments to foster bilateral cultural exchanges
within the Seato Community.

In addition the Council approved a number of
multilateral projects in the cultural relations field.

This is a new and promising development which
will strengthen the spirit of friendship which
already marks the relations between the eight
Seato member countries. A major cultural proj-
ect approved for immediate introduction is a
Seato fellowship program under which scholars
of Seato countries will be encouraged to under-
take study and research in fields of special interest
to Seato.

Another important project adopted is the con-
vening in one of the Asian member coimtries, of
a "Round Table" meeting, consisting of outstand-
ing authorities, in order to discuss Asian civiliza-
tions and cultures.

The Council also adopted a French proposal that
the competent bodies of Seato should consider
the problem of educational assistance in the Treaty
area and recommend measures applicable in this
field within the framework of Seato.

Permanent Organization and Budget

The Council considered the strengthening of the
permanent civil organization in Bangkok and to
that end decided to appoint a Secretary General

Department of State Bulletin

and a Deputy Secretary General. They directed
the Council Representatives to determine the terms
of reference of these officers and the timing of the
appointments and to consider and report on nomi-
nations from member governments for these posts.
The Council approved a budget of $787,145 for
the fifteen months ending June 30, 1958 to cover
the cost of their permanent civil and military head-
quarters in Bangkok and to help finance certain
joint jn-ograms.

Final Observations

Among the topics discussed by the Council was
that of neutralism.

It was observed with concern that some govern-
ments have in varying degrees adopted a line of
active opposition to collective security arrange-
ments such as Seato which are in full accord with
the Charter of the United Xations.

It was hoped that as time passed and the value
of Seato became more widely appreciated that
those who criticized it today would eventually be
willing to welcome it. Seato is not an exclusive
organization but remains open to all those coun-
tries in Southeast Asia who are willing to share its
benefits and responsibilities. The Council mem-
bers wish to stress that it was genuine concern for
the security of the area which led to their volun-
tary association in Seato ; all nations of the area
whether members of Seato or not, are benefiting
from the protection provided by Seatos collective
deterrent strength.

The members of the Council recorded their ab-
horrence at the use of Soviet forces to crush the
struggle by the Hungarian people for independ-
ence. They noted that the Soviet action was con-
doned and supported by Communist China. They
noted the vivid and revealing contrast provided
by the policies of certain member governments,
which have already led or are now leading to
full independence in various hitherto dependent
territories.

The Comicil met in an atmosphere of great
friendship, understanding and mutual trust. As
the organization moves into its new and expanded
phase of activity, the Council members are deter-
mined that Seato will work for the enrichment as
well as the defense of human life and liberty in
accordance with the principles and purposes of tlie
Charter of the United Nations.

The representatives attending the Third Seato

April 7, 1957

420297 — 57 3

Council Meeting were: Australia - Rt. Hon. R. G.
Casey; France - M. Pierre de Nelice; New Zea-
land -Hon. T. L. MacDonald; Pakistan -Mr. S.
Amjad Ali; Philippines- Vice President Carlos
P. Garcia; Tliailund-Mr. Rak Panyarachun;
United Kingdom -Rt. Hon. The Earl of Home;
United States -Hon. John Foster Dulles.

STATEMENT BY SECRETARY DULLES AT OPEN-
ING SESSION, MARCH 11

Press release 128 dated March 11

It is a great satisfaction for me to serve for the
third time as the United States representative at
the annual conference of the Seato Council. It
is appropriate that we thus come together to take
stock of our strength in the vital Seato area. We
are happy to be able to do this in the hospitable
land of Australia.

During the 3 years since our defensive treaty
M'as signed, Seato has proven a strong bulwark.
It has contributed greatly to the relative peace
and security which all the member nations now
enjoy. Seato is an effective force against aggres-
sion and subversion. This fact has encouraged
constructive developments in many fields. The
increased stability in the treaty area is fully
evident.

One notable example is the unity and strength
developed by the Republic of Viet-Nam. A
serious problem does, however, remain in Laos,
where, despite the Geneva armistice agreement,
international communism continues to support the
Pathet Lao insurgents. The Republic of Korea,
Japan, and the Republic of China are outside the
treaty area, but there is an interlocking connection
with them because the United States does have
collective defense treaties with these other free
Asian nations. It may therefore be relevant to
report that there is growing strength in each of
these three other free nations.

Political progi-ess within our treaty area is at-
tested by the fact that the Federation of Malaya
will soon achieve full independence. With re-
spect to Singapore, amiable and fruitful dis-
cussions are now in progress. During the period
of Seato's existence, the free countries of the area
have conducted orderly elections on a nationwide
basis and have been able to implement their ideals
of universal suffrage and free elections.

Substantial social and economic progi-ess has

529

been made by all member states. A broad inter-
change of visits by officials, as between the free
Asian countries, has served to create new bonds
of fi-iendship and understanding. Useful inter-
changes have also taken place between the free
Asian nations and the West. I recently had the
pleasure of receiving in my offices the 1,000th Thai
to come to the United States under the technical
training program conducted by our International
Cooperation Administration.^ By such inter-
changes in their lands and ours, the American
people learn much about the ancient culture and
the modern aspirations of free Asian nations. I
hope in turn tliat they learn something of value
from us and that it will serve both to advance
their own professional careers and to contribute to
the happiness and well-being of their peoples.

United States cooj^eration with our Asian
partners continues through bilateral arrangements
for economic aid, technical assistance, and cultural
exchange. These include our recent program of
Seato cultural gi-ants.=* Also of help is our mem-
bership in the Colombo Plan and Ecafe [Eco-
nomic Commission for Asia and the Far East],
and our bilatei'al agreements of sharing knowledge
and materials for the peaceful uses of atomic
energy. Plans for an Asian Nuclear Center lo-
cated at Manila are being actively studied by the
Colombo Plan nations with assurance of sub-
stantial United States support, both technical and
fuiancial.

Our mutual security pacts, including Seato, are
other manifestations of the same intent. And let
there be no doubt in any quarter — be it friendly
or hostile — that the American Nation is united in
its determination to respond to our obligations
under these pacts. Also that determination is
backed by power in being and in useful places.

Beyond the Treaty Area

We need, however, also to look beyond the con-
fines of our own treaty area. Events elsewhere
have been dramatic and instructive. Since we last
met, it has been demonstrated beyond a doubt that
the materialistic rule of communism will never
meet the aspirations with which human beings are
endowed by their Creator.

' For an exchange of corresiiondence between President
Elsenhower and the Prime Minister of Thailand, see
Bulletin of Mar. 18, 1957, p. 442.

'Ibid., Mar. 25, 1957, p. 503.

Within the Soviet Union, the rulers have had to
disavow Stalin's brand of communism. They have
had to move, even though slowly, toward granting
their people greater personal security, gi'eater
freedom of thought and of conscience, and greater
enjoyment of the fruits of their labor. Within
Poland and Hungary, 12 years of indoctrination
have failed to persuade the youth that the Soviet
system satisfies either national or their individual
desires. Throughout the satellite area, there is
revulsion against the brutal colonialism and ex-
ploitation of Soviet imperialism. We can con-
fidently conclude from this that international com-
munism now imposed upon many of the peoples
of Asia is a passing and not a permanent phase.

On the other hand, developments elsewhere re-
veal characteristics which should keep us on guard.
When the people's revolt in Hungary could not
be subdued by the Eed Army forces already there,
Hungary was openly invaded and overrun by So-
viet divisions, spearheaded by tanks. They ruth-
lessly slaughtered the j^eople of Hungary who
were manifesting their desire of freedom. The
Soviet rulers did this in defiance of repeated calls
from the United Nations that the Soviet desist
from this armed attack upon another member state
in violation of the charter.

In the Middle East, the Soviet rulers have per-
sistently sought to foment trouble. Wlienever it
seemed that the difficulties in the area might be
peacefully composed, the Soviets have intervened
and by vicious propaganda and by large-scale
arms shipments sought to set the peoples of the
area against each other. All of this again is in
clear defiance of their obligations to seek the
settlement of international disputes by peaceful
means and in conformity with the principles of
justice and international law.

We must keep indelibly clear in our minds that
international communism is not regardful of le-
gality or of humanity or of the moral force of
world opinion as reflected in the General Assem-
bly of the United Nations. For these reasons it
is at most but a transient if painful episode in the
history of mankind.

The open support given by the Communist Chi-
nese to Soviet colonialism and imperialism and to
Soviet defiance of the United Nations has ominous
implications for all free Asian nations. These ac-
tions give us all ample warning of the true nature
of the Chinese Communist regime. They also

530

Department of Stale BuUelin

finphiisize the continuing importance of the mili-
tary side of Seato, of the work of our military ad-
\iser.s and of our combined military planning. All
of this has been highly ell'cctive.

Avoiding Communist Traps

A year ago at Karachi I stated (hat the success
of our trade, aid, and cultural exchange programs
was producing imitators.'' These imitatore, I said,
would use such programs for completely different
purposes. Our purpose is to build up the free na-
tions. Their purpose would be to destroy freedom
and independence.

I also predicted that the free Asian leaders who
had shown great political skill in winning in-
dependence for their countries would readily dis-
tinguish between liberty and tyranny. They
would do so even though tyranny went about
disguised in the pilfered clothes of liberty. I
do not think any of the free Asian leaders have
been deceived. Some may not yet be fully aware
of the danger from the numerous underground
forces which the Communist conspirators tradi-
tionally use. However, in various free Asian
countries there is already evidence of official action
to counter Communist penetration of schools,
trade unions, and minority groups. These are
encouraging beginnings in meeting a large-scale
and growing threat.

We who are members of Seato may gain influ-
ence beyond the treaty area as we ourselves set a
good example. Let us put our own houses in
order. Let us avoid Communist traps baited with
offers of trade and aid. Let us expose Communist
techniques of subversion. Let us make economic
and social progress. Let us build up our educa-
tional systems. T^et us give fair treatment to
minority groups. Let us train capable trade-union
leaders. Thus we can do much to show other free
nations how to seal off effectively the various tra-
ditional avenues of Communist penetration.

The several Seato committees have done much
planning to assist member nations toward this end.
I congratulate all who have taken part in laying
this groundwork for Seato activities and cooper-
ation in many fields. In the months and years
ahead those plans need to be put into effect and
enlarged. I am sure that in these meetings here
at Canberra we shall contribute strongly to this
achievement.

' Ibid., Mar. 19, 1956, p. 449.
April h 1957

STATEMENT BY SECRETARY DULLES ON U.S.
CHINA POLICY, MARCH 12

Press release 138 dated March 13

The United States adheres steadfastly to the
three main aspects of its China policy, which is to
recognize the Republic of China ; not to recognize
the so-called People's Republic of China; and to
oppose the seating of this People's Republic in
the United Nations as the accredited representa-
tive of what the charter calls the Republic of
China.

This policy is not merely an expression of
emotional dislike of Chinese communism, al-
though the creed and practices of the Chinese
Communists are in fact repugnant to us. Also
our policy is not merely an expression of senti-
mental loyalty to the Republic of China, although
we do feel loyalty to a Government which was
loyal to the Allied cause throughout even the
darkest days of the Second World War.

Our policy stems primarily from considera-
tions of national interest and, we believe, of inter-
national interest. First of all we ask ourselves:
Will the interests of the United States be ad-
vanced by according diplomatic recognition to the
Chinese Communist regime?

The answer to that is in our opinion clearly
negative. United States diplomatic recognition
of the Chinese Communist regime would serve no
national purpose but would strengthen and en-
courage influences hostile to us and our allies and
further imperil lands whose independence is re-
lated to our own peace and security.

In this connection we recall that there are many
millions of immigrant Chinese who form parts of
the populations of free Asian countries. Today
many of them, perhaps most of them, remain loyal
to the Republic of China now seated at Taiwan,
which symbolizes the China that they know. We
can see only loss and no gain in action which would
make these overseas Chinese more apt to serve
the subversive policies of the Chinese Communist
regime.

If we examine this matter from the standpoint
of the United Nations, we come to a similar con-
clusion. The United Nations would not be
strengthened if the Communists were there to
represent China, and we cannot see that they have
any right to this role.

The charter seeks that membership should be
made up of peace-loving governments able and

531

willing to carry out their obligations under the
charter. There is no evidence that the Chinese
Communist regime would represent China in the
spirit envisaged by the charter. It has fought
the United Nations in Korea and still stands con-
demned as an aggressor against the United Na-
tions. It seized Tibet by force. It promoted the
war in Indochina. It refuses to renounce resort
to war as an instrument of its policy in relation
to Taiwan and the Penghus. Its conduct toward
other nations and their citizens does not reflect the
tolerance and good neighborliness which the mem-
bers of the United Nations are supposed to prac-
tice.

If the Communist regime were allowed to repre-
sent the Republic of China in the United Nations,
it would presumably sit on the Security Council
as a permanent member with veto power. That
Council is the body which by the charter is en-
trusted with primary responsibility for the main-
tenance of peace and security in conformity with
the principles of justice and international law. It
would be grotesque if that high responsibility were
to be conferred upon a regime which itself stands
condemned as an armed aggressor against the
United Nations and which itself is a most con-
spicuous, violator of justice and international law.

The United Nations is faced with growing re-
sponsibilities. These could not be more readily
discharged by giving the Chinese Communists the
opportunity to work mischief there.

We believe that United States policies are not
merely in our own interest and in the interest of
the free world but also that they are in the in-
terest of the Chinese people themselves, with
whom the American people have historic ties of
friendship.

STATEMENT BY SECRETARY DULLES AT
CLOSING SESSION, MARCH 13

Press release 140 dated March 13

We have, I believe, every leason to be gratified
with what has been accomplished during the 3
days of the Seato Council meeting at Canberra.
Inspired by the opening address of Prime Minis-
ter Menzies, we have gone on to adopt sound
recommendations for expanded activities. These
will promote the peace and security of the area by
making the Seato nations better able to counter
in all its varied aspects the Communist threat.

These programs cover diverse fields, such as
combined military-defense information programs,
economic cooperation, and cultural exchange. But
they all have a single purpose. Their aim is to
strengthen spiritually and physically the peoples
and nations who wish to resist the Communist
menace and to pursue in freedom their individual
and national aspirations. These manifold activi-
ties of Seato require for their success a high degree
of coordination. This will be promoted by the
Secretary General and Deputy Secretary General,
new positions which the Council here has agreed
to establish.

I wish, Mr. Chairman, to express my apprecia-
tion and that of the entire United States delega-
tion to our host, the Government of Australia, to
you, Mr. Casey, our able chairman, and to the
others here in Canberra who have done so much
to make the Council meeting the success it has
been. We recognize the enormous effort that goes
into preparing for such an important meeting at-
tended by so many people of different lands. We
have been met on all sides by careful preparation,
courtesy, cooperation, and good humor. It is the
excellence of arrangements made for us here that
has pennitted us to accomplish so much in these
3 days.

These arrangements have a significance which
goes far beyond the personal enjoyment of the dele-
gates themselves. It contributes to the develop-
ment of the friendship between our countries
which, as Prime Minister Menzies pointed out, is
one of the imponderable but most valuable assets
of our association. In this connection, I am sure
that my colleagues will wish to join me in asking
the chairman to convey to the Speaker of the House
and the President of the Senate our gratitude for
their gracious hospitality and ask them to convey
to the parliamentary stall' and to Hansard our ap-
preciation for their great assistance and the skill
with which they have handled this important
conference.

The success of this third Council meeting, like
that of the previous two, also owes much to the
various Seato committees, the Council represent-
atives, and the military advisers, who did such
excellent work in preparing their reports and
recommeiulafions. Their conscientious efforts
through the more than 2 years of Se.vto's existence
have made it possible for us to look forward each
year with increased confidence in ourselves and in

532

Deparfment of State Bulletin

our capacity to resist the vaT-iod forms of attack
wliich we know are being made and will continue
to be made against us by the Communists.

At this meeting we have again aflirmed our be-
lief that only through the exercise of wliat the
United Nations Charter calls the inherent right
of collective defense backed by adequate force can
we exfject to remain free. By constant vigilance
and dedication to the high purposes expressed in
our treaty and in the Pacific Charter, we can hope
that in the coming year Seato will contribute fur-
ther to the peace and security not only of South-
east Asia but of the world. Thank you.

SECRETARY DULLES' NEWS CONFERENCE,
CANBERRA, MARCH 13

Press release Hi dated March 14

Secretary Dulles: I am very happy to have a
chance to meet with you for a few minutes. Our
conference has just closed, and I shall be going
back to Washington the first thing tomorrow
morning. It has been, I think, a good conference.
It has not been spectacular; it has been harmo-
nious and in that respect perhaps it has not made
much news, but from the standpoint of a member
of the Council I would rather have it that way.
We have built, I think, constructively, and I have
tlie feeling more than ever before that Seato is a
real solid going concern. My feeling in that re-
spect is somewhat increased perhaps by the fact
that I am told that the Communist propaganda is
attacking us very viciously and blaming all the
evils of much of the world upon Seato. That, at
least, proves that we are not insignificant. I
might say in reply that I think events of recent
years have demonstrated beyond the possibility of
doubt that the Communists try to make trouble
where there is none and, if there is any anywhere,
they try to make it worse. That has certainly
been our experience during this last year. Now
if you have any questions I would be glad to try
to answer them.

Q. Mr. Dulles, is it correct that under tchat is
noio knoion a.s the Eisenhower Doctrine, if one of
the middle East powers asked for military aid to
frotect therii from armed aggression, the United
States will give such aid?

A. Well, there are three aspects of the so-called
Eisenhower Doctrine. One is to assist the coun-

tries to build up their economies so they can be
strong and independent. The second is to help
them to develop their own defensive capabilities
so that they will have a dependable security-
defense force. And the third is, if they are at-
tacked by a Communist-controlled country and if
they want our assistance, the President is author-
ized to give it.

Q. Mr. Dulles, the situation in the Middle
East — do you see any alarming portents in the
nei'j developments there?

A. Well, I would not like to answer that ques-
tion because I am not fully up to date. I would
prefer not to talk about the recent developments
in that part, of the world. Those are being
handled — from the standpoint of the United
States — being handled from Washington. And I
am not kept fully informed, and I would prefer
not to comment on the basis of inadequate in-
formation on what is obviously a delicate situa-
tion.

Q. Mr. Dulles.^ could you ansioer a subsidiary
question stemming from the first one?

A. All right.

Q. Why toas it that the United States did not
give military aid, to Hungary when she appealed
to the United, States to protect her from Russia?

A. Well, there was no basis for our giving mili-
tary aid to Hungary. We had no commitment to
do so, and we did not think that to do so would
either assist the people of Hungary or the people
of Europe or the rest of the world.

U.S. Negotiations With the Philippines

Q. Mr. Dulles, has there been any progress in
the United States negotiations with the Philip-
pine Government on the question of American
bases in the Philippines?

A. There has been no recent progress made.
The talks have been temporarily suspended. I
expect that they will be resumed soon. The dif-
ferences between us are, I think, not insurmount-
able, and I expect that there will be an amicable
settlement, but at the moment the discussions are
in suspension.

Q. Mr. Secretary, the question I have been try-
ing to ask is whether or not the events in the Mid-
dle East have caused any change in your plans to

April I, 7957

533

return home. You are still planning to stay over-
night here and start hack tomorrow morning?

A. Yes, I am going back according to schedule,
going back tomorrow morning. I hope to spend
a day at Honoluhi and rest up, and I will be back
in Washington on Saturday or Sunday and get
ready for the Bermuda conference with Mr.
Harold Macmillan, which will begin on Wednes-
day afternoon.

Q. We should not put any significance to your
leisurely trip tomorrow? You donH regard the
Middle East situation as alarming?

A. No, all I can say is that I am conscious that
the people in Washington are perfectly able to
take care of it.

Q. That means you tuill miss the National Se-
curity Cowncil meeting that is called for Thurs-
day?

A. They have them every Thursday ; so, if I am
ever absent on a Thursday, I miss that meeting.

Q. I understand that this was specially called
for the Middle East discussion.

A. I don't think so. I think it is a regular
Thursday meeting.

Q. Mr. Dulles., is Ameiica introducing atomic
weapons to Southeast Asia for SEATO defense in
the area?

A. No, not that I am aware of. We have atomic
capabilities in our own mobile forces in the area,
but they are confined, as far as I am aware, to
our own forces.

Q. Mr. Dulles, could you say why it is that
President Eisenhower has not asked for authority
to protect any European country against armed
aggression?

A. We have such authority in the North Atlan-
tic Treaty. You see, we get the authority in any
one of two ways. One is by a congressional res-
olution, and the other is by a treaty. A treaty be-
comes a law of the land in the same way that a
congressional joint resolution becomes law of the
land. So that we can operate in either of two
ways, either under the treaty form, which is the
case of Europe, or the joint resolution form, which
is that adopted in the case of the Middle East.

Q. Gould I just ask you to explain why the
United States, after suggesting the formation of
the Baghdad Pact, subsequently withdrew from it?

Baghdad Pact

A. Well, it would be hardly accurate to say we
witlidrew from it because we were never a member
of the Baghdad Pact. We did suggest the desir-
ability of an organization for secm-ity purposes
of what I call the nortliern-tier countries. I made
that suggestion after having been out there the
first year I was Secretary of State some 4 years
ago. We were very glad to see the Baghdad Pact
formed. We are associated with it in many re-
spects, and I hope will become even more closely
associated with it without necessarily becoming a
formal member of the treaty organization.

Q. Mr. Dulles, in your opening address to the
Council and those of the other Ministers, there was
reference to the primary requirement of insuring
the security of countries in South and Southeast
Asia. Could you tell us how SEATO proposes to
apply that to the Kashmir prohlem?

A. Well, I am not sure that Seato will interest
itself in the Kashmir problem. I don't think that
is a problem for Seato. You will recall perhaps
that the United States, at least in adhering to the
Seato treatj', said that the aggression with which
we concerned ourselves was Communist aggres-
sion, and we limited our participation to that kind
of aggression.

Q. Would that he direct aggression, sir, or
Commjunist-inspired aggression?

A. I think that the actual language of the treaty
is "Communist aggi-ession."

Q. Mr. Dulles, you are reported to have told the
United States Congress on January £5 that an
American soldier called upon to fight in the Middle
East could "feel a lot safer" if he did not have
British and French troops alongside him. WJiat
do you mean hy that?

A. I was referring to the fact that some of the
Senators were suggesting that, if there were mili-
tary operations in the area, they should be under-
taken jointly with the British and the French. On
the other hand, the United Nations had just called
upon the British and the French to withdraw and
had created the United Nations Emergency Force
without participation by the Britisli and the
French. It did not seem to me under the circum-
stances it would be desirable for us to try to bring
back the British and French forces into the area
from which they had just retired as a result of
the recommendations of the United Nations.

534

Department of State Bulletin

Q. Mr. Dulles, is the United States jmtting ojf
naming an American amhassculor to the Philip-
pines until after the elections there and, as a con-
sequence, putting ojf the bases talks?

A. No, I hope that we will be able to ask the
agrcment, as it is called, of the Philippine Gov-
ernment for the appointment of an ambassador
shortly.

Q. And who is that?

A. We will have to tell the Government that
first.

Possibility of Sudden Communist Attack

Q. Mr. Dulles, would you feel that things are
just as delicate in the Southeast Asia area as in
the Middle East?

A. I would say that there exists here about the
same danger of Communist attack as there does in
the Middle East. I spoke to that point somewhat
this morning at the conference, pointing out the
fact that the danger of attack from Communist-
controlled countries can never be foreseen with
any confidence. When it comes, if it comes, it will
be because in the Communist type of dictatorship
they can make their preparations in entire se-
crecy. There is no 2:)arliamentary situation to con-
cern them, no public relations situation to concern
them ; there is no free press to concern them, and
they can always act and, if they wish, strike in a
way which will take us by surprise. Therefore,
we must always be prepared and ready as long as
they have the kind of military potential which
they do have, and as long as they have the ex-
pansionist ambitions which they do have.

Q. Mr. Dulles, what are you hoping will he the
outcome of the Bermuda talks?

A. Well, these talks are the kind of talks which
we have periodically with the heads of other gov-
ernments with whom we have many relations.
There are always a series of these talks throughout
each year, and there are a number of matters of
common concern to the British and ourselves that
we will talk over, and I think we will come to a
better understanding between ourselves.

Q. Is the United States concerned about the
presence of Russians in Antarctica, and is the
United States prepared to do anything about

them?

A. We are concerned about their presence there.
In fact, we are concei'ned about their presence
almost anywhere. I have had talks on that sub-
ject with your Prime Minister and your Foreign
Minister. I think we. want to be very careful that
the Soviets, under the guise of the Geophysical
Year, don't engage in activities which are not
contemplated by the scientists who outlined that
year.

Q. Mr. Dulles, in view of what you just said
about the danger of sudden Communist attach it
ivould be possible legally for tlie United States to
act immediately under the SEATO treaty if that
attack occurred in this region?

A. Yes, it would be.

Q. Mr. Dulles, has the Australian viewpoint on
Dutch New Guinea been put to you, and, if so, have
you had any reaction to it?

A. About New Guinea, no, we have not had any
particular talks about that. I think the problem
comes up annually at the United Nations. It
came up again this year. I forget what the dispo-
sition was. But our position in that matter is
well known. There is nothing new to develop on
that.

■Middle East

Q. Mr. Dulles, do you feel that the United
Nations should take a stronger line with Egypt,
as it took with Israel?

A. I think that we should try to stand for the
principles of the charter, the principle that dis-
putes should be settled by peaceful means and in
conformity with the principles of justice and in-
ternational law. That is the first article of the
charter. We have tried to make that prevail as
against Israel, and I believe we should also try to
make it prevail as against Egypt.

Q. lias the United States of America ever re-
gretted its decision to cancel the loan to Egypt for
the Astoan Dam?

A. No, I think if anything events have con-
firmed that fact that it would not have been a
wise operation for us to have tried to conduct to-
gether. That was a gigantic proposition wlrich
involved expenditures of probably a billion and
a half dollars, by far the largest operation of the
kind ever known in the history of the world. It

April 1, 1957

535

would have taken about 15 years of close associa-
tion ; it would have involved an austerity progi-am
on the part of Egj-pt which I think the people
would have come to resent and would have blamed
the foreigners who were the partners in the enter-
prise. The more we studied it, the more we came
to the conclusion that it was not a suitable project
for the United States and the United Kingdom,
because they were in it also, to try to conduct with
Egjpt.

Q. Do you think it hastened the seizure of the
canal company iy Egypt?

A. Well, it is hard to say whether that hastened
it or not. We now know from statements made
by President Xasser and also made by President
Tito that there had been plans to seize the Uni-
versal Canal Company made approximately 2
years before. The plans wei'e all ready and this
may have provided the occasion, but, if there had
not been this occasion, I am quite sirre another one
would have been found.

Q. Mr. Dulles, was it the hope of yowr Govern-
ment when the United Nations first moved into
the Gaza Strip that they would remain for some
considerable time?

A. We believe that it would be desirable to have
the United Nations Emergency Force function as
a barrier between Israel and the neighboring Arab
countries. That has been difficult to work out,
partly because Israel has not wanted to have any
elements of the United Nations Force on the
Israeli side of the boundary and Egypt has not
wanted to have them exclusively on the Egyptian
or Gaza Strip of the boundary. But I still hope
something can be worked out there to give greater
stability and tranquillity to the area and to put
a stop to the raiding back and forth.

Q. Did the Israeli Government agree to with-
draic its forces on the assumption of the United
Nations barrier?

A. No, I would hardly say that, because Israel
itself has been the principal obstacle to creating
that ban-ier. As I pointed out, they have not
wanted to have the United Nations forces actually
on the boundary line.

Q. Mr. Dulles, since the Philippines loill not
yield on this question of jurisdiction, wiill the
United States eventually meet the Philippine
demands?

A. I don't believe the issue is quite as sharp as
your question suggests, and I am confident of this,
that two countries which have as much in com-
mon as the Philippine Republic and the United
States have are going to find a mutually satisfac-
tory answer to this problem. It is unthinkable
that our whole problem of mutual security, which
is so important to both of us, should collapse on
this issue. I am sure it will not collapse because
I have faith in the reasonableness and concilia-
tory nature of both parties.

Q. Could you give us some information on the
ideas of the United States thinking of the present
infernal strife in Indonesia?

A. Well, it is always difficult and a little bit
dangerous to try to diagnose what is essentially,
I think, an internal development within In-
donesia. But from the information that I have it
would seem as though this was largely a problem J
of the degree of autonomy to be accorded to the "
different islands. It is a question of, you might
say, the balance of power between the Federal
Government and the various island communities.
I do not believe that in its present manifestation
it has any international aspects of significance.

Communist China

Q. What assurances, undertakings, and actions
would the United States reguire of Communist
China hefoi'e it would consider recognition of the
Comm/unist regime?

A. Well, as I said in my statement, the United
States looks at it from the standpoint of doing or
not doing what will serve the best interests of the
United States. Now when you have a regime
which is avowedly hostile to us and all that we
stand for, to my mind it doesn't make much sense
that we should take action to make it stronger and
enhance its influence and prestige in the world.
The reason for our action is what basicallj' I de-
scribed and, if that reason disappeared, then I
suppose we would have to reconsider the situation,
but basically a nation conducts its foreign policy
in such a way as to protect itself and recognition
is something that is a privilege, not a right. No
government has a right to have recognition. It
is a privilege that is accorded, and we accord it
when we think it will fit in with our national in-
terest, and if it doesn't, we don't accord it.

Q. Mr. Dulles, have you had talks today or talks

536

Department of Stale Bulletin

at (HI hei'e with Lord Home and Mr. Menzles on
the sititatwn in the Middle East, specifically the
Gaza Strip?

A. Well, we have not discussed it except in the
most casual way because, as I have said, I have
not here in Canberra tried to keep in touch with
that situation. That is being dealt with, from
the standpoint of the United States, in Washing-
ton. And while we have alluded to it casually as
we have met together on various topics, we have
not had any serious talks about the matter because
I have said to them the same thing that I have
said to you here — I am not handling that phase of
the matter for the Government of the United
States. At the present time it is being handled by
the Acting Secretary of State in Washington.

Q. Can you express your views on the jwbu/re
form of administration of the Suez Canal?

A. Well, the views that we hold are those that
were expressed first at the conference in London
where the 18 nations, including the United States,
adopted certain proposals and the matter was fur-
ther discussed in the Security Council of the
United Nations and there the United States, as
a member of the Security Council of the United
Nations, voted for the so-called six principles.
Then there were private discussions on the ap-
plication of those six principles which were con-
ducted by the Secretary-General as between the
Foreigii Secretaries of the United Kingdom,
France, and Egypt, and those were expressed and
embodied in a letter which the Secretary-General
made public to the members of the United Na-
tions. That all advanced the matter quite a long
way toward what we think is an acceptable so-
lution, and if that could be brought to a conclu-
sion, as was forecast at that time, I think it would
be generally acceptable.

Q. Mr. Dulles, referring again to atomic xoeap-
ons, would the United States forces in the Pa-
cific have quick access to them, in an emergency?

A. The United States forces, yes indeed. Our
forces almost everywhere nowadays have atomic
weapons as almost a normal part of their equip-
ment. Now we don't take them everywhere, but
so far as they are on American soil and under
American jurisdiction or on American ships,
American planes, they have immediate access to
atomic capabilities.

Q. Folloiving that, Mr. Dulles, the Commander
in Chief of NATO said on his appointment that
he would use, on hehalf of NATO, he would make
the fullest use of all atomic weapons. Does that
policy also apply to the combined forces of
SEATO?

A. Well, of course we don't have quite the
same military setup. There is no commander of
a joint operation in Seato as is the case with
Nato, where there is a Saceur, the Supreme Com-
mander of Europe, who has the operational re-
sponsibility for forces of a number of different
nationalities. But the United States forces which
are committed to the defense of Seato would have
the same atomic capability as the United States
forces do in Nato.

Q. Does the United States envisage ever using
the Woomera rocket range for rocket testing?

A. Now you are out of my depth. I don't know.
That is a matter that the Defense people would
Imow about, but I don't know.

Q. There was some speculation that Mr. Menzies
loould he asking you for a clear definition of
United States policy on the Middle East during
your visit here. I guess it was only speculation,
but I loonder if you had been asked for that.

A. No, I wasn't asked for that. I think our
position is fairly clear. I will take one more ques-
tion, and I have to get ready for dinner with Lord
Home.

Q. Have you a clear view of United States pol-
icy on the Middle East?

A. Have I a clear Adew of it ? I think so, yes.

Working Group on German Reunifica-
tion Completes Report

Press release 149 dated March 15

The Working Group, consisting of representa-
tives of the United States, the United Kingdom,
France, and the Federal Republic of Germany,
which has been meeting at Washington to review
the problem of German reunification in relation
to European security, has now completed a report
for the consideration of the four governments.^

' For an announcement of the meeting, which began on
Mar. 6, and the names of the chief representatives of the
four governments, see Bdxletin of Mar. 25, 1957, p. 491.

AptW 7, 7957

537

German Minister for Atomic Affairs
To Visit the United States

The U.S. Atomic Energy Commission and the
Department of State announced on March 12
(press release 136) that Siegfried Balke, German
Federal Minister for Atomic Affairs, would arrive
March 13, aboard the S.S. United States. He will
be in the United States about 10 days.

In response to an invitation from the Depart-
ment of State and Lewis L. Strauss, Chairman of
the Atomic Energy Commission, Dr. Balke will
proceed to Washington for talks with officials of
the Department of State and the Atomic Energy
Commission. Afterward, the Minister will visit
the first full-scale nuclear power plant mider con-
struction at Shippingport, Pa., and the Commis-
sion's National Laboratories at Lemont, 111., and
Oak Ridge, Tenn. Before returning to Germany,
Dr. Balke will visit Canada.

Mr. Stassen To Represent U.S.
at London Disarmament Meetings

Press release 139 dated March 13

Harold E. Stassen, Special Assistant to the
President, will represent the U.S. Government at
the forthcoming meetings of the Disarmament
Subcommittee of the United Nations Disarma-
ment Commission, which are expected to convene
at London on March 18, 1957.

Amos J. Peaslee, formerly American Ambas-
sador to Australia, will be the Deputy U.S.
Representative.

The United Nations Disarmament Commission
was established by the General Assembly in 1952
and is concerned with preparing proposals on all
aspects of the regulation of armed forces and
armaments, including nuclear weapons. The
Commission is composed of the 11 members of the
United Nations Security Council and Canada.
In 1953, on recommendation of the General As-
sembly, the Disarmament Commission set up a
Subcommittee of Five — Canada, France, the
United Kingdom, the United States, and the
Union of Soviet Socialist Republics — to seek in
private an acceptable solution of the disarmament
problem. This Subcommittee met most recently
at Ijondon in the spring of 1956. It has now been

reconvened to continue its efforts in accordance
with a United Nations General Assembly reso-
lution which passed 76-0 on February 15, 1957.^

Hungary's National Holiday

Statement hy President Eisenhower

White House press release dated March 15

March 15th is a day of special significance to
the Hungarian people. As a traditional Hun-
garian national holiday commemorating the Hun-
garian people's struggle of 1848-49 against for-
eign domination, it symbolizes their enduring
aspirations for freedom and national independ-
ence.

It is most fitting at this time, when the world
has again witnessed the courageous sacrifice of the
Hungarian people for these cherished ideals, that
we should affirm our understanding of the mean-
ing which this day has in the hearts and minds
of Hungarians everywhere.

The struggle for human freedom has been a
vital force in the history and progress of civilized
mankind. In our highly interdependent modern
society this struggle, wherever waged, has neces-
sarily become the common concern of all human-
ity. Today, as in the time of Louis Kossuth, the
American people deeply sympathize with the just
demands of the Himgarian people for freedom and
independence.

The suffering which the Hungarian people have
undergone for the sake of these principles has
forged an vmbreakable bond with the free-world
community. The Hungarian people have in their
lifeblood written anew the message that an alien
and unwelcome ideology cannot forcibly be im-
posed on a free-spirited people. Wlien attempted,
the inevitable result is the complete rejection of
that ideology and hatred of those who seek to im-
pose such tyranny upon others. In recognition
of this truth which the Hungarian people have
demonstrated, we can do no less than express our
confident hope and our profound belief that the
processes of enlightemnent and justice among men
and nations will triumph in the end in Hungary
and in all other oppressed nations.

^ For backgi-oiind, see Bdi,i.etin of Feb. 11, 1957, p. 225,
and Mar. 11, 1957, p. 423.

538

Department of State Bulletin

Department Announcement Regarding
Canadian Ambassador to Egypt

Press release 152 dated March 16

The Canadian Embassy has had discussions
■with the Department of State with regard to state-
ments concerning E. H. Norman, now Canadian
Ambassador to Egypt, made on March 14 during
hearings of the Senate Internal Security Subcom-
mittee.

The Department of State notes that comments
were made in the committee hearings which could
be interpreted as assigning to Mr. Norman certain
questionable political affiliations. It should be
pointed out that the investigation being under-
taken by the committee lies entirely within the
conti'ol of the committee. Allegations which may
have been made regarding Mr. Norman in the
course of the hearing do not represent opinions of
the U.S. Government.

The United States maintains the friendliest re-
lations with Canada and has every confidence in
the Canadian Government's judgment in the selec-
tion of its official representatives.

Tenth Anniversary of
Greek-Turkish Aid Program

Following are the texts of messages sent hy
President Eisenhoioer on March 12 to King Paul
of Greece and President Celal Bayar of Turkey
on the 10th anniversary of the Greeh-Turkish Aid
Program.

Message to King of Greece

White House press release dated March 12

YoTjR Maji:sty: I am delighted to convey to
you my greetings on the occasion of the anniver-
sary of a decade of Greek-American coopera-
tion in the interest of security and economic
progress.

Ten years ago, Greece was fighting bravely for
its very existence against the onslaught of com-
munist imperialism. I acclaim Greek achieve-
ment in winning that struggle and then repairing
the devastation it had caused, and in continuing to
play an important part in the defense of the free
world.

I am proud that Greece and the United States

have stood together during this difficult period.
The partnership of our countries is a striking ex-
ample of the way in which free nations working
together can contribute to the peace and security
of the international community.
Most respectfully,

DwiGHT D. Eisenhower

Message to President of Turkey

White House press release dated March 12

Dear Mr. President: On the occasion of the
anniversary of a decade of Turkish-American co-
operation in the interest of security and economic
progress, I am delighted to convey to you my
greetings. I acclaim the accomplishments of Tur-
key during the past ten years in strengthening its
position of enlightened leadership, and in taking
an important part in the defense of the free world.

I am proud that Turkey and the United States
have stood together during this difficult period.
The partnersliip of our countries is a striking ex-
ample of the way in which free nations working
together can contribute to the peace and security
of the international community.
Sincerely,

DwiGHT D. Eisenhower

Pan American Games

Press release 142 dated March 13

In view' of extensive 'press inquiries regarding
the appropriation for the Pan American games
scheduled to he held at Cleveland in 1959, Roy R.
Rubottom, Jr., Acting Assistant Secretary for
Inter-Amencan Affairs, and I. W. Carpenter, Jr.,
Assistant Secretary-Controller, made the follow-
ing statements on March 13:

STATEMENT BY MR. RUBOTTOM

The Pan American games were inaugurated
after World War II by the Pan American Sports
Congress, an organization composed of 29 nations
of the Western Hemisphere. They are patterned
after the Olympic games and are to be held every
4 years, the first having been held in Buenos Aires
in 1951 and the second in Mexico City in 1955. It
is my understanding that representatives of the

AptW 7, 7957

539

city of Cleveland issued an invitation to this group
to hold the 1959 games in their city, and on March
11, 1955, this invitation was accepted by the Pan
American Sports Congress and Cleveland was
designated as the site for the 1959 games.

Wlien the legislation was proposed, the Depart-
ment commented as follows :

This occasion will provide our country with an oppor-
tunity to further promote pan-American friendship
through the effective media of amateur sportsmanship.
Our facilities, our hospitality and our treatment of the
many visitors from abroad, both participants in the
games and spectators, will be compared with that which
was provided by Argentina and Mexico. It is important
that this comparison not be to our discredit. Not only
foreigners coming to Cleveland, but the millions who will
follow the games abroad by press, radio and television
will be apprised of the importance and attention our coun-
try gives these games. They can make a long-term con-
tribution to our foreign policy objectives by creating a
broader understanding of our country and people and our
recognition of the importance of our good neighbors of
this hemisphere.

It is the position of the Department that this under-
taking by the city of Cleveland to be host to the Pan-
American Games in 1959 merits appropriate support from
the Federal Government. It may be appropriate to point
out that the National Governments of both Argentina and
Mexico provided substantial financial support in the
organization of the games In their capitals.

On July 30, 1956, a joint resolution of Congress
was approved as Public Law 833 and reads as
follows :

Resolved by the Senate and House of Representa-
tives of the United States of America in Congress as-
sembled. That there is hereby authorized to be appropri-
ated out of moneys in the Treasury not otherwise appro-
priated tie sum of $5,000,000 for III Pan American Games
(1959). The said appropriation shall be available for
the purpose of promoting and insuring the success of the
Pan American games to be held in Cleveland, Ohio, in
1959 and shall be expended in the discretion of the organi-
zation sponsoring said games, subject to such audit as
may be prescribed by the Comptroller General of the
United States.

STATEMENT BY MR. CARPENTER

The Department of State is in no way responsi-
ble for the issuance of the invitation for the games
to be held in Cleveland. The Department's inter-
est is based on its desire that the games be held in

circumstances and in an atmosphere which will
promote friendly relations among the nations of
this hemisphere. Since an American city is the
host, it is particularly important that our foreign
guests depart with a feeling that they have been
among sincere friends.

An appropriation has been included in the De-
partment's budget for fiscal year 1958. The De-
partment is not in a position to speak to the de-
tails for which these funds are required. Officials
of the city of Cleveland and of the Pan American
Games Foundation are familiar with that.

The Department has no substantive responsi-
bility for these games. Neither will it have a
voice with regard to the manner in which these
funds will be spent. It would seem appropriate,
therefore, that justification for these funds should
be advanced by the representatives of the Cleve-
land Pan American Games Foundation, which
organization would have the responsibility rather
than the Department.

The Department believes that the inclusion of
this type of estimate in the State Department
appropriation stinicture is vmdesirable since the
State Department does not customarily engage
in actually spending funds for activities of this
kind within the United States. The Department
will have no objection if this item were to be re-
moved from its appropriation chapter.

Letters of Credence

Haiti

The newly appointed Ambassador of Haiti,
Dantes Bellegarde, presented his credentials to
President Eisenhower on March 11. For the
texts of the Ambassador's remarks and the Presi-
dent's reply, see Department of State press release
127.

Chile

The newly appointed Ambassador of Chile,
Mariano Puga, presented his credentials to Presi-
dent Eisenhower on March 12. For the texts of
the Ambassador's remarks and the President's re-
ply, see Department of State press release 133.

540

Departmenf of Stafe Bulletin

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Calendar of Meetings '

Adjourned During March 1957

U.N. General Assembly: 11th Session New York Nov. 12, 1956-Mar.

9, 1957.

U.N. ECOSOC Subcommission on Prevention of Discrimination and New York Feb. 18-Mar. 15

Protection of Minorities: 9th Session.

ICAO Technical Panel on Teletypewriter Montreal Feb. 19-Mar. 8

U.N. ECE Working Party on Gas Problems: 2d Session Geneva Feb. 25-Mar. 1

U.N. ECOSOC Population Commission: 9th Session New York Feb. 25-Mar. 8

ILO Governing Body: 134th Session (and Committees) Geneva Feb. 25-Mar. 9

International Sugar Council: Statistical Committee London Mar. 4 (1 day)

U.N. ECOSOC Committee on Nongovernmental Organizations . . New York Mar. 4-6

SEATO Engineering Workshop Study Group Rawalpindi, Pakistan . . . Mar. 4-7

International Sugar Council: Executive Committee London Mar. 5 (1 day)

International Sugar Council: 12th Session London Mar. 6-7

FAO Committee on Relations with International Organizations . Rome Mar. 7-8

U.N. ECAFEIndustrv and Trade Committee: 9th Session .... Bangkok Mar. 7-17

SEATO Council: 3d Meeting Canberra Mar. 11-13

Technical Advisory Council of Inter-American Institute of Agri- Turrialba, Costa Rica . . . Mar. 11-14

cultural Sciences: 2d Meeting.

FAO Ad Hoc Intergovernmental Meeting on Wheat and Coarse Rome Mar. 11-15

Grains.

International North Pacific Fisheries Commission: Ad Hoc Com- Tokyo Mar. 11-17

mittee for Study of Reports Submitted Under Article III 1 (a) of

the International North Pacific Fisheries Convention.

9th Pakistan Science Conference Peshawar, West Pakistan . . Mar. 11-18

ILO Inland Transport Committee: 6th Session Hamburg Mar. 11-23

International North Pacific Fisheries Commission: Standing Com- Tokyo Mar. 18-23

mission on Biology and Research.

U.N. Economic Commission for Asia and the Far East: 13th Ses- Bangkok Mar. 18-28

sion.

FAO Committee on Commodity Problems: 28th Session .... Rome Mar. 18-29

International Tin Study Group and Management Committee: 9th London Mar. 19-20

Meeting.

WMO Working Group on Networks of the Commission for Synoptic DeBilt, Netherlands .... Mar. 19-30

Meteorology. .,, , >,».»»

U.S.-U.K. Bermuda Meeting Bermuda Mar. 21-23

in Session as of March 31, 1957

U.N. Trusteeship Council: Standing Committee on Petitions. . . New York Feb. 18-
U.N. Arf //oc Committee on Establishment of Special U.N. Fund for New York Mar. 11-

Economic Development (SUNFED). ,, „

ICAO Aerodromes, Air Routes, and Ground Aids Division: 6th Montreal Mar. 12-

Session. ..t -.r , i>i , .

U.N. Trusteeship Council: 19th Session New York Mar. 14-

U.N. Disarmament Commission: Subcommittee of Five London Mar. 18-

U.N. ECOSOC Commission on Status of Women: 11th Session . New York Mar. 18-

ICEM Executive Committee: 7th Session Geneva Mar. 28-

Scheduied April 1-June 30, 1957

FAO Cocoa Studv Group: Statistical Subcommittee Rome Apr. 1-

UPU Executive and Liaison Committee Lausanne Apr. 1-

* Prepared in the Office of International Conferences, Mar. 1.5. 1957. Asterisks Indicate tentative dates and places.
Following is a list of abbreviations: U.N., United Nations; ECOSOC, Economic and Social Council: ICAO, International
Civil Aviation Organization ; ECE, Economic Commission for Europe ; ILO, International Labor Organization ; SEATO,
Southeast Asia Treaty Organization : FAO, Food and Agriculture Organization ; ECAFE, Economic Commission for Asia
and the Far East • WMO, World Meteorological Organization ; ICEM, Intergovernmental Committee for European Migra-
tion- UPU Universal Postal Union: UNESCO, United Nations Educational, Scientific and Cultural Organization;
UNICEP United Nations Children's Fund : GATT, General Agreement on Tariffs and Trade ; ITU, International Tele-
commimication Union ; NATO, North Atlantic Treaty Organization ; WHO, World Health Organization ; UNREF, United
Nations Refugee Fund ; PAIGH, Pan American Institute of Geography and History ; PASO, Pan American Sanitary
Organization.

April I, 7957 541

Calendar of Meetings — Continued

Scheduled April 1-June 30, 1957 — Continued

ILO Advisory Committee on Salaried Employees and Professional Geneva Apr. 1-

Workers: 4th Session.

UNESCO Intergovernmental Advisory Committee on the Major Paris Apr. 1-

Project on Mutual Appreciation of Asian and Western Cultural

Values: 1st Meeting.

FAO European Commission for Control of Foot-and-Mouth Disease: Rome Apr. 2-

4th Session.

FAO Special Committee on Observer Status Rome Apr. 2-

FAO Cocoa Study Group: Executive Committee Rome Apr. 4-

ICEM Subcommittee on Coordination of Transport Geneva Apr. 5-

ICEM Council: 6th Session Geneva Apr. 8-

U.N. Scientific Committee on the Eflfects of Atomic Radiation: 3d Geneva Apr. 8-

Meeting.

U.N. ECOSOC Commission on Human Rights: 13th Session . . . Geneva Apr. 8-

U.N. ECAFE: 5th Regional Conference of Asian Statisticians . . . Bangkok Apr. 8-

UNICEF Executive Board and Program Committee New York Apr. 8-

ILO Tripartite Working Party on Wages, Hours of Work, and Geneva Apr. 11-

Manning on Board Ship.

United States World Trade Fair New York Apr. 14-

U.N. Economic and Social Council: 23d Session New York Apr. 16-

Inter- American Commission of Women: Technical Experts and Mexico, D. F Apr. 20-

Administrative Heads of Women's Labor Bureaus.

FAO International Poplar Commission: 9th Session Paris Apr. 22-

International Poplar Congress Paris Apr. 22-

ICAO Legal Committee: Subcommittee on Hire, Charter, and Madrid Apr. 24-

Interchange of Aircraft.

2d European Civil Aviation Conference Madrid Apr. 24-

9th ILO International Conference of Labor Statisticians .... Geneva Apr. 24-

U.N. ECE Steel Committee and Working Parties Geneva Apr. 24-

Inter-American Committee of Presidential Representatives: 3d Washington Apr. 29-

Meeting.

ITU Administrative Council: 12th Session Geneva Apr. 29-

U.N. ECOSOC Narcotic Drugs Commission: 12th Session . . . . New York Apr. 29-

U.N. Economic Commission for Europe: 12th Session Geneva Apr. 29-

South Pacific Commission: Conference on Review of the Commis- Canberra Apr. 30-

sion.

International Commission on Irrigation and Drainage: 3d Congress. San Francisco May 1-

10th International Cannes Film Festival Cannes May 2-

NATO Council: Ministerial Meeting Bonn May 2-

ILO Mptal Trades Committpe: 6th Si'ssion Geneva May 6-

FAO Technical Meeting on Soil Fertility for Latin America .... Turrialba, Costa Rica . . . May 6-

U.N. ECE Seminar on Industrial Statistics Athens May 6-

U.N. ECOSOC Social Commission: 11th Session New York May 6-

FAO European Forestrv Commission: 9th Session Rome May 7-

WHO: 10th World Hpalth Assembly Geneva May 7-

International Hydrographic Bureau: 7th Congress Monte Carlo May 7-

Inter- American Travel Congresses: Permanent Executive Com- Washington May 10-

mittee.

FAO Indo-Pacific Fisheries Council: 7th Session Bandung May 13-

U.N. ECAFE Highway Subcommittee: Seminar on Highway Tokyo Mav 13-

Safety.

U.N. Economic Commission for Latin America: 7th Session ... La Paz May 15-

International Conference for Uses of Radar in Marine Navigation . Genoa May 16-

International Cotton Advisory Committee: 16th Plenary Meeting . Istanbul May 20-

Intf'rnational Commission for Northwest Atlantic Fisheries: 7th Lisbon May 20-

Meeting.

Customs Cooperation Council: 10th Session Brussels May 27-

WHO Executive Board: 20th Session Geneva May 27-

ILO Governing Body: 135th Session Geneva May 27-

U.N. ECE Housing Committee: 14th Session and Working Parties . Geneva May 27-

UNREF Standing Program Subcommittee: 5th Meeting Geneva May 27-

UNESCO Executive Board: 48th Session Paris May 27-

PAIGH Directing Council: 2d Meeting Rio de Janeiro May*

Inter-Ameriean Commission of Women: 12th General Assembly . . Washington June 1-

FAO Council: 26th Session Madrid June 3-

UNREF Executive Committee: 5th Session G?neva June 3-

U.N. ECAFE Working Party on Small-Scale Industries and Handi- India June 3-

craft Marketing: 5th Meeting.

World Power Conference : International Executive Council .... Belgrade June 4-

World Power Conference: Sectional Meeting Belgrade June 5-

International Labor Conference: 40th Session Geneva June 5-

FAO Asia-Pacific Forestry Commission: 4th Session Bandung June 8-

542 Deparfment of Sfafe BuUefin

Calendar of Meetings — Continued

Scheduled April 1-June 30, 1957 — Continued

GATT Balance-of-Payments Consultations

U.N. ECE Inland Transport Committee: Working Party on Trans-
port of Dangerous Goods.

PASO Executive Committee: 31st Meeting

ICAO Panel on Future Requirements for Turbo-jet Aircraft: 3d
Meeting.

WMO Commission for Aerology: 2d Session

WMO Commission for Instruments and Methods of Observation:
2d Session.

7th International Film Festival

FAO Technical Advisory Committee on Desert Locust Control: 7th
Meeting.

International Rubber Study Group: 13th Meeting

International Council for the Exploration of the Sea: 45th Meeting .

International Whaling Commission: 9th Meeting

U.N. ECAFE Iron and Steel Subcommittee: 7th Session

FAO Desert Locust Control Committee: 4th Session

U.N. ECOSOC Coordination Committee

International Wheat Council: 22d Session

Geneva June 10-

Geneva June 11-

Washington June 12-

Montreal June 17-

Paris June 18-

Paris June 18-

Berlin June 21-

Morocco* June 23*-

Djakarta June 24-

London June 24-

London June 24-

Bangkok . . June 24-

Morocco* June 2.5*-

Geneva June 25-

London June

Compliance With U.N. Resolution Calling for Withdrawal of Israel
From Egyptian Territory

FoUoioing is the text of a statement made hy
Henry Cabot Lodge, U.S. Representative to the
General Assembly, on March 8, together with a
statement made by Secretary-General Dag Ham-
marskjold in the plenary session of February 22
and a report by the Secretary-General on March 8.

STATEMENT BY AMBASSADOR LODGE, MARCH 8

U.S. delegation press release 2640

Today marks compliance with our first resolu-
tion of February 2 ^ for the withdrawal of Israel
from Egypt. The way now lies open to cari-y out
our second resolution, which aims at acliieving
peaceful conditions after withdrawal.

This is an event in the history of the United
Nations which is full of deep meaning for all
people in the world — wherever they may be— who
wish to be saved from the scourge of war.

It is an event which reflects credit on Israel, a
nation which heeded the call of world opinion.

It is an event which reflects credit on those mem-
bers, notably Egypt, who by patience and forbear-

ance demonstrated their steadfast faith in the
United Nations.

It is an event which reflects credit on the skill,
wisdom, and devotion to duty of the Secretary-
General.

It is an event which proves again the value of
the United Nations as an organization which plays
an indispensable part in causing the world, as in
this case, to take a turn away from war.

The United States welcomes the report of the
Secretary-General and pledges its support to as-
sure that what has now been achieved will be used
as a foundation on which to build a good future
for the people of the Near East free from the dan-
ger of conflict.

As is fitting, the report dwells on the construc-
tive purposes of our second resolution of February
2} This resolution stated that after full with-
drawal of Israel from the Sharm el-Sheikh and
Gaza areas the scrupulous maintenance of the
Armistice Agreement required the placing of
Unef on the Egyptian-Israel demarcation line and
the implementation of other measures proposed in
the Secretary-General's report of 24 January ^ to

' Bulletin of Feb. 25, 1957, p. 327.

' Ihid., Feb. 18, 1957, p. 275.

April ?, 1957

543

assist in achieving a situation conducive to the
maintenance of peaceful conditions in the area.

The steady worsening of conditions along the
armistice line which culminated in the hostilities
of last October demonstrated how fear of aggres-
sion on one side begets fear on the other. Out of
this fear comes the danger for the future.

It was to head off this danger that the Assembly
endorsed the deployment of the United Nations
Emergency Force on the armistice line and at the
Straits of Tiran. It was with this danger in
mind that I pointed out on January 28 ^ that the
deployment of the United Nations Emergency
Force must be such as to assure a separation of the
armed forces of both sides as required by the
Armistice Agreement.

Now that we approach this new stage in the de-
ployment of the Unef, the United States appeals
to all concerned to cooperate in giving effect to
the practical and sensible measures which are set
out in the reports by the Secretary-General of
January 24, February 22, and March 8, and which
are called for by the second resolution of Febru-
ary 2. The United States in particular is con-
vinced that the continued deployment of the
United Nations Emergency Force in accordance
with the second resolution of February 2 affords
the best hope of allaying the fear which has ani-
mated both sides and, thus, of establishing a basis
for further progress toward peace and tranquillity
in that part of the world.

We have made a wonderful beginning. We
have nursed the patient through several crises.
Now let us give him a chance to put some flesh on
his bones, and build up an immunity to future
illness.

STATEMENT BY SECRETARY-GENERAL, FEB-
RUARY 22

United Nations press release dated February 22

On February 11th I submitted the report (A/3527),' in
pursuance of the resolution of the General Assembly of 2
February (A/Res/461). Events since then have not
called for .i further report and I have presented none.

It is well-known, however, that discussions have been
carried on outside this house in the continuing resolve to
attain the goals defined in the several resolutions of the

'Ibid., p. 270.

'Ibid., Mar. 11, 1057, p. 394.

General Assembly. I have maintained close contact with
these activities and have been kept well-informed on them.
These serious efforts to break through the unfortunate
Impasse and to unlock the door to constructive endeavour
are deserving of warm appreciation.

Insofar as United Nations activities and positions are
concerned, developments in the interim have given no
reason to revise any of the substance of the previous re-
port. However, in the light of some subsequent discus-
sions in which I have engaged, I may make the following
statement in the nature of a supplement to that report.

"The Secretary-General states with confidence that it is
the desire of the Government of Egypt that the take-over
of Gaza from the military and civilian control of Israel —
which, as has been the case, in the first instance would be
exclusively by UNEF — will be orderly and safe, as it has
been elsewhere. It may be added with equal confidence
that the Government of Egypt, recognizing the present
special problems and complexities of the Gaza area and
the long-standing major responsibility of the United Na-
tions there for the assistance of the Arab refugees, and
having in mind also the objectives and obligations of the
Armistice Agreement, has the willingness and readiness
to make special and helpful arrangements with the United
Nations and some of its auxiliary bodies, such as UNEWA
and UNEF. For example, the arrangement for the use of
UNEF in the area should ensure its deployment on the
Armistice line at the Gaza Strip and the effective inter-
position of the Force between the armed forces of Egypt
and Israel. Similarly, the assistance of the United Na-
tions and its appropriate auxiliary bodies would be en-
rolled toward putting a definite end to all incursions and
raids across the border from either side. Furthermore,
with reference to the period of transition, such other ar-
rangements with the United Nations may be made as will
contribute towards safeguarding life and property in the
area by providing eflicient and effective police protection;
as will guarantee good civilian administration ; as will
assure maximum assistance to the U.N. refugee pro-
gramme; and as will protect and foster the economic
development of the territory and its people."

REPORT OF SECRETARY-GENERAL, MARCH 8

U.N. doe. A/.3568

I

1. The General Assembly, on 2 February 1957, adopted
a resolution (A/Res/460) in which, after recalling its
previous resolutions on the same subject, the Assembly
called upon Israel to complete its withdrawal behind the
Armistice Demarcation Line without further delay.

2. The Foreign Minister of Israel, on 1 March, an-
nounced in the General .\ssembly the decision of the Gov-
ernment of Israel to act in compliance with the re<iuest
in this resolution. The same day the Secretary-General
instructed the Commander of the United Nations Emer-
gency Force, as a matter of the utmost urgency, to arrange
for a meeting with the Israel Conniiander-iu-Chief, in
order to agree with him on arrangements for the com-

544

Department of State Bulletin

plete and unconditional withdrawal of Israel in accord-
ance with the decision of the General Assembly.

3. On 4 March, the Foreign Aliuister of Israel conflrnied
to the General Assembly the Government of Israel's
declaration of 1 March. The same day the Commander
of the United Nations Emergency Force met at Lydda
with the Israel Commander-in-Chief. Technical arrange-
ments were agreed upon for the withdrawal of Israel and
the entry of the United Nations Emergency Force in the
Gaza Strip during the hours of curfew on the night of
6/7 March. Arrangements were made for a similar take-
over of the Sharm-al-Shaik area on 8 March.

4. On 6 March, General Burns reported that the "United
Nations Emergency Force troops are now in position in
all camps and centres of population in Gaza Strip". At
that stage the operation had been carried out according
to plan and without incidents. At 0400 GMT 7 March
all Israelis had withdrawn from the Gaza Strip with
the exception of an Israel troop unit at Rafah camp. By
agreement, that last Israel element was to be withdrawn
by 1600 GMT 8 March. Full withdrawal from the Sharm-
al-Shaik area would be effected by the same time.

5. On 7 March, the Commander of the United Nations
Emergency Force notified the population of Gaza that "the
United Nations Emergency Force, acting in fulfilment of
its functions as determined by the General Assembly of
the United Nations with the consent of the Government
of Egypt, is being deployed in this area for the purpose
of maintaining quiet during and after the withdrawal of
the Israeli defense forces. Until further arrangements
are made, the United Nations Emergency Force has as-
sumed responsibility for civil affairs in the Gaza Strip.
. . . UNRWA will continue to carry out its resjMnsibility
and will continue to provide food and other services as
in the past. UNEF and UNRWA will do their best to
relieve pressing needs which may arise from the present
situation".

6. The Secretary-General, thus, is now in a position to
report full compliance with General Assembly resolution
I of 2 February 1957 (A/Res/460).

II

7. On 2 February, the General Assembly adopted a sec-
ond resolution (A/Res/461) "recognizing that with-
drawal by Israel must be followed by action which would
assure progress towards the creation of i)eaceful con-
ditiou.s" in the area. Under the terms of this resolution,
the completion of withdrawal puts its operative para-
graphs into full effect.

S. In the resolution on action to foUow a withdrawal,
the General Assembly requested the Secretary-General, in
consultation with the parties concerned, to carry out
measures referred to in the resolution and to report as
appropriate to the General Assembly. The Secretary-
General will now devote his attention to this task. The
stand of the General Assembly in the resolution is to be
interpreted in the light of the report of the Secretary-
General of 24 January (A/3512), which the Assembly
noted "with appreciation".

9. Specifically, the General Assembly called upon the
Governments of Egypt and Israel scrupulously to observe
the provisions of the General Armistice Agreement be-

tween Egypt and Israel of 24 February 1949 and stated
that it considered that, after full withdrawal of Israel
from the Sharm-al-Shaik and Gaza areas, the scrupulous
maintenance of the Armistice Agreement "requires a plac-
ing of the United Nations Emergency Force on the Egypt-
Israel Armistice Demarcation Line".

10. The Assembly further stated that it considered that
the maintenance of the Armistice Agreement requires the
implementation of "other measures as proposed in the
Secretary-General's report", with due regard to the con-
siderations set out therein, with a view to assist in
achieving situations conducive to the maintenance of
peaceful conditions in the area. This statement, as it
was formulated, read together with the request to the
Secretary-General to consult with the parties, indicates
that the General Assembly wished to leave the choice of
these "other measures" to be decided in the light of
further study and consultations.

Ill

11. Arrangements made by the Commander of the
United Nations Emergency Force provided for an initial
take-over in Gaza by the Force. This was in accordance
with the statement of the Secretary-General to the General
Assembly on 22 February, that "the take-over of Gaza
from the military and civilian control of Israel ... in
the first instance would be exclusively by UNEF". In-
structions from the Secretary-General to the Commander
of the United Nations Emergency Force reflected the
position thus reported to the General Assembly. The
notification by the Commander quoted in section I above
indicates the basis for this initial take-over as well as its
extent. The same statement indicates the importance of
the role that UNRWA can play in the initial take-over.

12. In accordance with decisions of the General Assem-
bly, UNRWA has important functions in relation to the
refugees in Gaza, which constitute the major part of the
population of the area. Because of these normal functions
and of the additional contributions which that agency
can make in aiding the non-refugee population, UNRWA
is of essential assistance to the United Nations Emergency
Force in its present operation. Therefore, and on the as-
sumption that this course is in accordance with the Gen-
eral Assembly's wishes, the Director of UNRWA has
agreed with the Secretary-General in this phase of the
development to extend its immediate assistance beyond
its normal functions. This would be done in fields which
are related to those functions and in which a sharing of
responsibilities devolving on the United Nations Emer-
gency Force at the initial take-over seems indicated. The
Secretary-General wishes to express his appreciation
for this assistance, of which he feels he can avail himself
within the terms established for the United Nations Emer-
gency Force as they have to be applied in the present phase
of its activities. To the extent that UNRWA in this con-
text is incurring additional costs, the reason for which
is within the sphere of the responsibilities of the United
Nations Emergency Force, a question of compensation will
arise for later consideration.

13. The United Nations may also incur other additional
costs than those caused by the assistance rendered by

April 1, 1957

545

DNRWA. The Emergency Force may be in need of ex-
pert advice that can properly be provided by the Secre-
tariat. If members of the Secretariat are taken over by
the United Nations Emergency Force on a secondment
basis, the cost obviously will be finally provided for as
UNEP expenditures under the relevant resolutions of
the General Assembly. In other cases costs should be
carried by the Secretariat in the normal veay.

14. The Secretary-General finally wishes to inform the
General Assembly that arrangements will be made
through which, without any change of the legal structure
or status of the United Nations Truce Supervision Or-
ganization, functions of UNTSO in the Gaza area will be
placed under the operational control of the Force. A
close co-operation between UNTSO and UNEF will be
maintained.

U.S. Delegations to
International Conferences

Inland Transport Committee of ILO

The Department of State announced on March
11 (press release 129) that the United States
would be represented by the following tripartite
delegation at the sixth session of the Inland Trans-
port Committee of the International Labor Or-
ganization, convening at Hamburg, Federal
Republic of Germany, from March 11 to 23:

Representinq the Govebnment op the United States

Delegates

Kenneth H. Tuggle, Commissioner, Interstate Commerce
Commission

Leon Greenberg, Chief, Division of Productivity and Tech-
nological Development, Bureau of Labor Statistics, De-
partment of Labor

Adviser

George Tobias, Labor Attach^, American Consulate Gen-
eral, Geneva, Switzerland

Representing the Employees op the United States

Delegate

Ernest W. Harlan, Bruce Motor Freight, Des Moines,
Iowa

Representing the Workers op the United States

Delegates

Rudolph Faupl, International Representative, Interna-
tional Association of Machinists, AFL-CIO, Washing-
ton, D. C.

Harold Ulrlch, General Chairman, Brotherhood of Rail-
way and Steamship Clerks, Freight Handlers, Express
and Station Employees, Boston, Mass.

The Inland Transport Committee, one of eight
industrial committees established by the Ilo in
1945, is composed of government, worker, and
employer representatives from specific industries.

These committees examine labor problems in their
particular industries.

The agenda of the sixth session of the Inland
Transport Committee, as fixed by the Governing
Body at its 127th session (Eome, November 1954),
includes reports concerning labor inspection in
road transport; methods of improving organiza-
tion of work and output in ports; and a general
report, dealing particularly with (a) action taken
in the various countries in light of the conclusions
adopted at previous sessions of the Committee;
(i) steps taken by the International Labor Office
to follow up the studies and inquiries proposed by
the Committee ; and (c) recent events and develop-
ments in inland transport.

The 26 countries which have been invited to send
tripartite delegates to this meeting are: Argen-
tina, Australia, Austria, Belgium, Brazil, Canada,
Colombia, Denmark, Egypt, Finland, France, the
Federal Republic of Germany, Greece, India,
Italy, Japan, Mexico, the Netherlands, Norway,
Pakistan. Portugal, Sweden, Switzerland, Tur-
key, the United Kingdom, and the United States.

UNESCO Executive Board

The Department of State announced on March
11 (press release 130) the United States delegation
to the 47th session of the Executive Board of the
United Nations Educational, Scientific and Cul-
tural Organization (Unesco), which will meet at
Paris on March 18. Prior to the convening of this
session, an ad hoc committee will meet from
March 11 to 15.

Athelstan F. Spilhaus, Dean of the Institute of
Technology, University of Minnesota, is the U.S.
representative on the Executive Board of Unesco.
Dr. Spilhaus will be assisted by the following ad-
visers : Henry J. Kellermann, Counsel for Unesco
Affairs, American Embassy, Paris; Guy Lee,
Unesco Relations Staff, Department of State; and
Byron Snyder, Office of International Administra-
tion, Department of State.

In addition to considering the report of the ad
hoc committee on the reorganization of the Execu-
tive Board and the schedule of meetings for the
next 2 years, the 47th session will also consider
necessary readjustments in Unesco's program and
budget for 1957-58 to implement the decisions
reached at the Ninth General Conference held at
New Delhi in November 1956.

It is expected that the Executive Board's 47th
session will adjourn on March 28.

546

DeparlmenI of Slate Bulletin

TREATY INFORMATION

U.S. Signs Agreement With France on
Defense Use of Technology

Press release 135 dated March 12

The Department of State announced on March
12 the signing of an agreement with France to
facilitate the exchange of patent rights and tech-
nical information for defense purposes. The
agreement was signed at Paris on March 12, 1957,
by Christian Pineau, French Minister of Foreign
Affairs, and Charles W. Yost, U.S. Charge d'Af-
faires. The agreement with France entered into
force on the date of signature.

The agreement is expected to foster the ex-
change of technology for defense purposes be-
tween the two Governments and between the pri-
vate industries of the two countries. Thus, it
should be of reciprocal benefit in providing for
national defense and in contributing to the mutual
defense of the North Atlantic Treaty area.

The agi-eement with France is the latest to be
signed of a series negotiated with the Xato coun-
tries and other countries with which the United
States has mutual defense ties. Similar agree-
ments have been signed with Italy, the United
Kingdom, Belgium, Norway, the Netherlands,
Greece, the Federal Eepublic of Germany, Turkey,
and Japan.

These agi-eements recognize that, whenever
practicable, privately owned technology should
generally be exchanged through commercial agree-
ments between owners and users. They also note
that rights of private owners of patents and tech-
nical information should be fully recognized and
protected in accordance with laws applicable to
such rights. The agreements are also intended to
assure fair treatment of private owners when they
deal directly with a foreign government. In addi-
tion, the agreements provide for the protection of
technical information communicated through gov-
ernment channels and for the establishment of
arrangements by which owners of patentable in-
ventions placed under secrecy by one government
may obtain comparable protection in the other
country. The agreements further provide that,
as a general rule, when government-owned inven-

Aprit 1, 1957

tions are interchanged for defense purposes, this
interchange will take place on a royalty-free basis.

Each of the agreements provides for the estab-
lishment of a Technical Property Committee to be
composed of a representative of each government.
These committees are charged with general respon-
sibility for considering and making recommenda-
tions on any matters relating to the agreements
brought before them by either government, either
on their own behalf or on behalf of their nationals.
One of the specific functions of the committee is
to make recommendations to the governments,
either in particular cases or in general, concern-
ing disparities in their laws affecting the compen-
sation of owners of patents and technical informa-
tion.

The U.S. representative to the Technical Prop-
erty Committees in Europe is assigned to the
staff of the Defense Adviser, United States Mis-
sion to the North Atlantic Treaty Organization
and European Regional Organizations (Usro), 2
Rue St. Florentin, Paris.

Policy guidance for the U.S. representatives on
the Technical Property Committees is provided
by the Interagency Technical Property Commit-
tee for Defense, which is chaired by the Depart-
ment of Defense and includes representatives of
the Departments of State, Justice, and Commerce,
the International Cooperation Administration,
and the Government Patents Board. This com-
mittee is assisted by an industry advisory group
representing major sectors of American industry
concerned with defense production.

Educational Exchange Agreement
With Ireland

Press release 151 dated March 16

An educational exchange agreement was signed
at Dublin on March 16 between Ireland and the
United States in connection with the use of the
American grant counterpart fimd. The agree-
ment was signed by Liam Cosgrove, Minister for
External Affairs, on behalf of Ireland, and "Wil-
liam Howard Taft III, American Ambassador,
on behalf of the United States.

The agreement provides that a sum of 500,000
pounds sterling out of the grant counterpart fund
(which totals approximately 6,142,000 pounds
sterling) is to be allotted, in the words of the
agreement, "to promote further mutual under-

547

standins: between the peoples of Ireland and the
United States of America by wider exchange of
knowledge tlirough educational contacts."

The terms of the agreement provide that ap-
proximately 25,000 pounds sterling shall be ex-
pended annually for the purpose of financing
studies, research, instruction, teaching, lecturing,
and other educational activities on the part of
Irish citizens in American schools, universities,
and other institutions of higher learning on the
one hand, and of American citizens in like educa-
tional institutions in Ireland on the other. The
funds available under the agreement may be used
to finance transportation, tuition, maintenance,
and other expenses for such educational activities.

The scholarship exchange program will be ad-
ministered by a joint Irish-American board in
Dublin. The agreement will come into force when
the Government of Ireland has notified the U.S.
Government that the necessary legislative steps
have been taken to implement the agreement.'
Further details as to the operation of the agree-
ment, and as to the manner in which applications
for scholarship benefits under it are to be applied
for, will be announced at a later date.

Current Actions

MULTILATERAL

Aviation

Agreement on joint financing of certain air navigation

services in Greenland and the Faroe Islands. Done at

Geneva September 25, 1956."

Signatures : Sweden, November 15, 1956; Belgium, Can-
ada, Federal Republic of Germany, Israel, and Italy,
November 28, 1956.

Acceptances deposited: Canada, January 18, 1957 ; Ice-
land, February 18, 1957.
Agreement on joint financing of certain air navigation

services in Iceland. Done at Geneva September 25,

1956.'

Signatures: Sweden, November 15, 1956; Belgium, Can-
ada, Federal Republic of Germany, Israel, and Italy.
November 28, 1956.

Acceptances deposited: Canada, January 18, 1957; Ice-
land, February 18, 1957.

Copyright

Universal copyright convention. Done at Geneva Septem-
ber 6, 19,52. Entered into force September 16, 1955.
TIAS .3324.
Accession deposited: Ecuador, March 5, 1957.

Protocol 1 concerning application of the convention to the
works of stateless persona and refugees. Done at

Geneva September 6, 19.52. Entered into force Sep-
tember 16, 1955. TIAS 3324.
Accession deposited: Ecuador, March 5, 1957.
Protocol 2 concerning application of the convention to
the works of certain international organizations. Done
at Geneva September 6, 1952. Entered into force Sep-
tember 16, 1955. TIAS 3324.
Accession deposited: Ecuador, March 5, 1957.

Slave Trade

Convention to suppress the slave trade and slavery.
Signed at Geneva September 25, 1926. Entered into
force March 9, 1927. 46 Stat. 2183.
Accession deposited: Libya, February 14, 19.57.

Trade and Commerce

International convention to facilitate the importation of
commercial samples and advertising material. Dated
at Geneva November 7, 1952. Entered into force
November 20, 1955."

Notification iij United Kingdom of extension to: Aden,
Barbados, British Guiana, British Honduras, Cyprus,
Falkland Islands, Fiji, Gambia, Gibraltar, Gold
Coast, Hong Kong, Jamaica, Kenya ', Leeward Islands
(Antigua, Montserrat, St. Christopher, Nevis, An-
guilla, and British Virgin Islands), Federation of
Malaya, Malta," Mauritius, North Borneo, Federation
of Nigeria, St. Helena, Sarawak, Seychelles, Sierra
Leone, Singapore, Somaliland Protectorate, Tan-
ganyika," Trinidad and Tobago," Uganda," the Wind-
ward Islands (Tonga, Dominica, Grenada, St. Lucia,
and St. Vincent), and Zanzibar, February 5, 1957.

BILATERAL

El Salvador

Treaty of friendship, commerce and consular rights.
Signed at San Salvador February 22, 1926. Entered
Into force September 5, 1930. 46 Stat. 2817.
Notification hy the United States of elimination of arti-
cle VI: February 8, 1957.

Mexico

Air transport agreement. Effected by exchange of notes
at Mexico March 7, 1957. Enters into force June 5,
1957.

Sweden

Agreement amending the agreement of .January 18, 1956
(TIAS 3477) for cooperation concerning civil uses of
atomic energy. Signed at Washington August 3, 1956.
Entered into force: March 12, 1957 (date on which each
Government received from the other written notifica-
tion that it has complied with statutory and constitu-
tional requirements).

Thailand

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 454, 4.55; 69 Stat. 44, 721).
Signed at Bangkok March 4, 1957. Entered into force
March 4, 1957.

United Kingdom

Agreement amending sections 5 and 6 of the financial
agreement of December 6. 3945 (TIAS 1545) by provid-
ing for the conditions under which annual installments
may be deferred. Signed at Washington March 6, 1957.
Enters into force when each Government notifies the
other that it has approved the agreement.

' Not in force.
548

■ Not in force for the United States.
" With reservation.

Department of State Bulletin

DEPARTMENT AND FOREIGN SERVICE

Foreign Service Examination

Press release 125 dated March 8

The Department of State announced on Marclv
8 that the semiannual Foreign Service officer ex-
amination will be given on June 24, 1957, at more
than 65 centers throughout the United States.
This examination is open to all who meet the age
and citizenship requirements outlined below.

Officials of the Department of State estimate
that several hundred new Foreign Service officers
will be required during the next year to fill posi-
tions overseas and in Washington, D.C. After
completing 3 months of training at the Foreign
Service Institute in Washington, some of the new
officers will take up duties at the 270 American
embassies, legations, and consulates around the
world. At these posts, which range in size from
the large missions such as Paris and London to
the one-man posts such as Perth, Australia, the
new officer may expect to do a variety of tasks, in-
cluding administrative work ; political, economic,
commercial, and labor reporting; consular duties;
and assisting and protecting Americans and pro-
tecting U.S. property abroad. Other new officers
will be assigned to the Department's headquarters
at Washington, where they will engage in research
or other substantive work, or in the many adminis-
trative tasks which are essential to the day-to-day
conduct of foreign affairs.

To explain fully these opportunities in the
Foreign Service which await the qualified young
men and women of the United States, Foreign
Service officers will visit a large number of col-
leges and universities this spring. In order to
make known the diversified needs of the Depart-
ment of State and Foreign Service, these officers
will talk not only with promising students of his-
tory, political science, and international relations
but also with those who are specializing in eco-
nomics, foreign languages, and business and public
administration.

Those successful in the 1-day written examina-
tion, which tests the candidate's facility in Eng-
lish expression, general ability, and background,
as well as his proficiency in a modern foreign

language, will subsequently be given an oral ex-
amination by panels which will meet in regional
centers throughout the United States. Those can-
didates who pass the oral test will then be given
a physical examination and a security investiga-
tion. Upon completion of these phases, the candi-
date will be nominated by the President as a
Foreign Service officer of class 8, vice consul, and
secretary in the diplomatip service.

To be eligible to take the examination, candi-
dates must be at least 20 years of age and under 31,
as of May 1, 1957, and must also be American citi-
zens of at least 9 years' standing. Although a
candidate's spouse need not be a citizen on the
date of the examination, citizenship must have
been obtained prior to the date of the officer's
appointment.

Starting salaries for successful candidates range
from $4,750 to $5,350 per year, depending upon
the age, experience, and family status of the indi-
vidual. In addition, insurance, medical, educa-
tional, and retirement benefits are granted, as well
as annual and sick leave.

Application forms may be obtained by writing
to the Board of Examiners for the Foreign Serv-
ice, Department of State, Washington 25, D. C.
The closing date for filing the application is May
1, 1957.

Confirmations

The Senate on March 14 confirmed David K. E. Bruce
to be Ambassador to the Federal Republic of Germany.
(For biographic details, see press release 89 dated Feb-
ruary 25.)

The Senate on March 14 confirmed C. Douglas Dillon
to be a Deputy Under Secretary of State. (For bio-
graphic details, see press release 22 dated January 14.)

The Senate on March 14 confirmed Elbridge Durbrow
to be Ambassador to Viet-Nam. (For biographic details,
see press release 104 dated March 1.)

The Senate on March 14 confirmed Amory Houghton
to be Ambassador to France. (For biographic details,
see press release 88 dated February 25. )

The Senate on March 14 confirmed Thorsten V. Kali-
jarvl to be an Assistant Secretary of State. (For bio-
graphic details, see press release 98 dated February 28.)

The Senate on March 14 confirmed G. Frederick Rein-
hardt to be Counselor of the Department of State. (For
biographic details, see press release 56 dated February 7.)

The Senate on March 14 confirmed William J. Sebald
to be Ambassador to Australia. (For biographic details,
see press release 90 dated February 25.)

April 1, 1957

549

Resignations

Herman Phleger as Legal Adviser, effective about April
1. ( For text of Mr. Plileger's letter to the President and
the President's reply, see White House press release dated
March 13.)

PUBLICATIONS

Foreign Relations Volume

Press release 107 dated March 4

The Department of State on March 16 released
Foreign Relations of the United States, 1939,
Volume II, General, The British Commonwealth,
and Europe. All the other volumes of the five
for 1939 have previously been published except
Volume- V, The American Republics, -which is in
process of preparation.

The first 212 pages of this volume contain
papers on various general subjects: Antarctic
claims and exploration, assistance to refugees,
fisheries off the coast of Alaska, and a number of
technical and economic pi'oblems.

Documentation on relations with the British
Commonwealth (pages 213-364) includes sections
on the United Kingdom, Australia, Canada, and
India. Problems of relations between the United
States as a neutral and the British as belligerents
are covei'ed, as well as other usual matters of di-
plomacy. Among the war subjects treated is the
sinking of the S. S. Athenia with loss of American
lives. It was only after the war that it was fully
established that this was an act of a German
submarine.

The remaining 534 pages of documentation
cover relations with individual continental Euro-
pean countries. The Soviet Union is omitted,
since the record for that country has already been
published in Foreign Relations of the United
States, The Soviet Union, 1933-1939. As would
be expected for a year in which the general Euro-
pean war began, subjects of diplomacy included
normal peacetime diplomatic relations as well as
subjects connected with the crises leading to war
and into the war itself. "Wliile the coming of the
war is primarily treated in volume I, this volume
contains the record on the absorption of Albania
by Italy, problems arising from the annexation of
Austria by Germany, and the Spanish Civil War.

In the section on Italy are recorded suggestions by
President Roosevelt regarding the opportunity
for Mussolini to contribute to the maintenance of
peace. The appointment of Myron C. Taylor as
the President's personal representative to Pope
Pius XII is documented in a section on the
Vatican.

Copies of volume II (vii, 911 pp.) may be ob-
tained from the Government Printing Office,
Washington 25, D.C., for $4 each.

Check List of Department of State
Press Releases: March 11-17

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

Press releases issued prior to March 11 which
appear in this issue of the Bulletin are Nos. 107
of March 4 and 125 of March 8.

Subject

Haiti credentials (rewrite).

Dulles: SEATO Council, March 11.

Delegation to ILO Inland Transport
Committee (rewrite).

Delegation to UNESCO Executive
Board (rewrite).

U.S. reply to Soviet note on Middle
East.

Ambassador Richards : departure
statement.

Chile credentials (rewrite).

Herter : death of Admiral Byrd.

U.S.-French agreement on defense use
of technology.

Visit of German Minister for Atomic
Affairs.

Statement on accident Involving Yugo-
slav U.N. representative.

Dulles: SEATO Council, March 12.

Delegation to Disarmament Subcom-
mittee meetings.

Dulles: SB.\TO Council, March 13.

SEATO communique.

Statement on Pan American games.

Lightner : statement ou amendments
to Smith-Mundt Act.

Dulles : press conference, Canberra,
March 13.

Murphy : "The U.S. Looks at the Mid-
dle East."

Folger nominated Ambassador to
Belgium.

Kalijarvi: statement on amending
Anglo-American financial agreement
of 1945.

Christie retirement.

Working Group on German reunifica-
tion completes report.

U.S. note to Dominican Government
on disappearance of Gerald Murphy.

Educational exchange agreement with
Ireland.

Announcement on Canadian Ambassa-
dor to Egypt.

♦Not printed.

tHeld for a later issue of the Bulletin.

No.

Date

127
128
129

3/11
3/11
3/11

130

3/11

131

3/11

132

3/11

133

*134

135

3/12

3/12
3/12

136

3/12

*137

3/i;j

138
139

3/13
3/13

140

141

142

tl43

3/13
3/13
3/13
3/13

144

3/14

145

3/14

*146

3/14

tl47

3/15

*148
149

3/15
3/15

tloO

3/16

151

3/16

152

3/16

550

Department of State Bulletin

April 1, 1957 I n d

American Republics. Pan American Games . . 539

Asia. Third Meeting of the Council of tlie South-
east Asia Treaty Organization (Dulles, text of
communique) 527

Atomic Energy. German Minister for Atomic Af-
fairs To Visit the United States 538

Australia. Confirmations (Sebald) 549

Canada. Department Announcement Regarding

Canadian Ambassador to Egypt 539

Chile. Letters of Credence (Puga) 540

China, Communist. Third Meeting of the Council
of the Southeast Asia Treaty Organization
(Dulles) 527

Communism. Third Meeting of the Council of the
Southeast Asia Treaty Organization (UuUes, text
of communique) 527

Congress, The. Department Announcement Re-
garding Canadian Ambassador to Egypt . . . 539

Department and Foreign Service

Confirmations (Bruce, Dillon, Durbrow, Houghton,
Kalijarvi, Reinhardt, Sebald) 549

Foreign Service Examination 549

Resignations (Phleger) 550

Disarmament. Mr. Stassen To Represent U.S. at

London Disarmament Meetings 53S

Economic Affairs. Inland Transport Committee of
ILO (delegation) 546

Educational Exchange. Educational Exchange
Agreement With Ireland 547

Egypt. Compliance With U.N. Resolution Calling
for Withdrawal of Israel From Egyptian Terri-
tory (Lodge, Hammarskjold) 543

Europe. Foreign Relations Volume 550

France

Confirmations (Houghton) 549

U.S. Signs Agreement With France on Defense Use
of Technology 547

Germany

Confirmations (Bruce) 549

German Minister for Atomic Affairs To Visit the

United States 538

Working Group on German Reunifiication Completes

Report 537

Greece. Tenth Anniversary of Greek-Turkish Aid

Program (Eisenhower) 539

Haiti. Letters of Credence (Bellegarde) . . . 540

Hungary. Hungary's National Holiday (Eisen-
hower) 538

International Organizations and Conferences

Calendar of Meetings 541

Inland Transport Committee of ILO (delegation) . 546
Mr. Stassen To Represent U.S. at London Disarma-
ment Meetings 538

UNESCO Executive Board (delegation) .... 546

Ireland. Educational Exchange Agreement With

Ireland 547

e X Vol. XXXVI, No. 927

Israel. Compliance With U.N. Resolution Calling
for Withdrawal of Israel From Egyptian Terri-
tory (Lodge, Hammarskjold) 543

Middle East

Ambassador Richards Leaves for Middle East . . 526

Compliance With U.N. Resolution Calling for With-
drawal of Israel From Egyptian Territory

(Lodge, Hammarskjold) 543

The United States Looks at the Middle East

(Murphy) 515

United States Replies to Soviet Proposal for Dec-
laration on Middle East (te.xts of U.S. and

Soviet notes) 523

Mutual Security. U.S. Signs Agreement With

France on Defense Use of Technology .... 547

Presidential Documents

Hungary's National Holiday 538

Tenth Anniversary of Greek-Turkish Aid Program . 539

Publications. Foreign Relations Volume . . . 550

Treaty Information

Current Actions 548

Educational Exchange Agreement With Ireland . 547
U.S. Signs Agreement With France on Defense Use

of Technology 547

Turkey. Tenth Anniversary of Greek-Turkish Aid

Program 539

U.S.S.R. United States Replies to Soviet Proposal
for Declaration on Middle East (texts of U.S. and

Soviet notes) 523

United Kingdom. Foreign Relations Volume . . 550

United Nations

Compliance with U.N. Resolution Calling for With-
drawal of Israel From Egyptian Territory

(Lodge, Hammarskjold) 543

Inland Transport Committee of ILO (delega-
tion) 546

UNESCO Executive Board (delegation) .... 546

The United States Looks at the Middle East

(Murphy) 515

Viet-Nam. Confirmations (Durbrow) .... 549

Name Index

Balke, Siegfried 538

Bellegarde, Dantes 540

Bruce, David K.E 549

Carpenter, I.W., Jr 540

Dillon, C. Douglas 549

Dulles. Secretary 529

Durbrow, Elbridge 549

Eisenhower, President 538, 5.S9

Hamm.Trskjold, Dag 544

Houghton, Amory 549

Kalijarvi, Thorsten V 549

Lodge, Henry Cabot 543

Murphy, Robert 515

Norman, E. H 539

Phleger, Herman 550

Puga, Mariano 540

Reinhardt, G. Frederick 549

Richards. James P 526

Rubottom. Roy R.. .Tr 539

Sebald, William J 549

Stassen, Harold E 538

V. S. fiOVERHHENT PR1NTIN6 OFFICE, 1917

LvjU-UUVy

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OFFICIAL BUSINESS

Foreign Relations of the United States

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

1939, Volume II

General, The British Commonwealth, and Europe

The first 212 pages of this volume contain papers on various general
subjects: Antarctic claims and exploration, assistarice to refugees, fisheries
off the coast of Alaska, and a number of technical economic problems.

Documentation on relations with the British Commonwealth (pp. 213-
364) includes sections on the United Kingdom, Australia, Canada, and
India. Problems of relations between the United States as a neutral and
the British as belligerents are covered, as well as other usual matters of
diplomacy. Among the war subjects treated is the sinking of the S.S.
Athenia with loss of American lives. It was only after the war that it was
fully established that this was an act of a German submarine.

The remaining 534 pages of documentation cover relations with
individual continental European countries. The Soviet Union is omitted,
since the record for that country has already been published in Foreign
Relations of the United States, The Soviet Union, 1933-1939. As would
be expected for a year in which the general European war began, subjects
of diplomacy included normal peacetime diplomatic relations as well as
subjects connected with the crises leading to war and into the war itself.
While the coming of the war is primarily treated in volume I, this volume
contains the record on the absorption of Albania by Italy, problems arising
from the annexation of Austria by Germany, and the Spanish Civil War.
In the section on Italy are recorded suggestions by President Koosevelt
regarding the opportunity for Mussolini to contribute to the maintenance
of peace. The appointment of Myron C. Taylor as the President's per-
sonal representative to Pope Pius XII is documented in a section on the
Vatican.

Copies of this publication may be purchased from the Superintendent of
Documents, U.S. Government Printing OiEce, Washington 25, D. C, for
$4 each.

Please send me copies of Foreign Relations of tfie United States, 1939,

Volume II, General, Tlie Britisfi Commonwealtli, and Europe,

Name:

Street Address:

City, Zone, and State:

FHE DEPARTMENT OF STATE

iPOCJTORY

Vol. XXXVI, No. 928

April 8,

ICIAL

:kly record
ted states

!EiGN POLICY

UNITED STATES AND UNITED KINGDOM EXCHANGE
VIEWS AT BERMUDA MEETING • Text of Joint

Communique 561

THE UNITED NATIONS AND PUBLIC UNDERSTAND-

ING • by Assistant Secretary Wilcox 555

AMENDING THE U.S. INFORMATION AND EDUCA-
TIONAL EXCHANGE ACT OF 1948 • Statement by
E. Allan Lightner, Jr 566

AIR TRANSPORT AGREEMENT BETWEEN UNITED

STATES AND MEXICO • Department Announcement
and Text of Agreement 575

NOTICE OF INTENTION TO ENTER INTO LIMITED
TRADE AGREEMENT NEGOTIATIONS WITH THE
UNITED KINGDOM AND BELGIUM 581

THE COLD WAR AND THE UNIVERSITIES • Article

by Frederick Cable Oechsner 571

For index see inside back cover

THE DEPARTMENT OF STATE

:,ry
:Tionts

APR 2 2 1957

Vol. XXXVI, No. 928 • Publication 6473
April 8, 1957

For sale by the Superintendent of Documents

U.S. Government Printing Office

Washington 25, D.C.

Price:

62 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents

The printing of this publication has been
approved by the Director of the Bureau of
the Budget (January 19, 1955).

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

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

Publications of the Department,
United Nations documents, and legis-
lative material in the field of inter-
national relations are listed currett tly.

The United Nations and Public Understanding

J)y Francis 0. Wilcox

Assistant Secretary for International Organization Ajfairs^

I am glad to have the opportunity to discuss
some aspects of critical issues before the United
Nations. The intense glare of publicity that has
attended the negotiations on Hungary and on the
Middle East has not always been illuminating.
It has at times highlighted the unessential, even
the nonexistent, and at other times cast into deep
shadow the main lines of policy and action. I
should like to try to set in focus the role of the
United States and the United Nations in dealing
with world problems, especially aggression and
threats to the peace.

Set in simple terms, it is United States policy
to support the United Nations and to work
through it to establish and maintain peace and
well-being among nations. We believe it holds
the best hope for the security and well-being of
the American people.

We attempt to conduct our relations with other
nations in conformity with the purposes and prin-
:iples of the United Nations Charter. We avoid
the use of force as a means of settling disputes
between ourselves and other states. If a problem
irises which properly belongs in the United Na-
tions, we use our influence to bring it there. If,
in our opinion, it is not a United Nations mat-
ter, we urge its settlement by other means.

The United Nations is a political organization
which has its proper uses and its limitations. It
is not a remedy for all the world's ills. Misunder-
standing on this score is, I think, the basis of

^ Adilress made before the National Council of Jewish
Women at Washington, D.C., on Mar. 19 (press release
160).

most criticism of both the United States role in
the United Nations and the role of the United Na-
tions when attempting to deal with world crises.

Limitations of the United Nations

This past year has been a year of grave tests
for the United Nations and a time of peril for
world peace. The situations that arose in Egypt
and in Hungary provided both the peril to man-
kind and the tests for the United Nations. These
issues have in common the fact that military force
w-as used by one nation against another. This
is the ultimate issue the United Nations was de-
signed to meet and solve. The degree of success
achieved by the United Nations in restoring peace
with justice is a gage of its capabilities and its
limitations as a peace-enforcing institution. Even
more important, it is a measure of the extent to
which member states will permit it to perform its
peacemaking f imctions.

The criticism has been leveled at the United
Nations that it has proved weak and ineffective.
This was charged not only in the case of Hungary,
because of the Assembly's inability to get the
Soviet Union to withdraw its forces, but also in
the Middle East when compliance with the recom-
mendations of the General Assembly lagged.

We must face the fact that, with great-power
disunity reflected in the Security Council, the
United Nations is handicapped in preventing
breaches of the peace and bringing about restora-
tion of peace. The role of the General Assembly
is largely one of discussion and recommendation.

This does not mean, however, that the United
Nations is without power to influence the conduct

i^prW 8, 1957

555

of nations. In some ways it may be likened to
the role of the policeman in a community. In a
well-ordered community he is a symbol of law and
order, an arbiter, created by the community for
its own protection. Called in on a dispute, he
is not set upon by the mob. He is permitted to
exercise a power which he docs not, in himself,
possess. But this means that the community must
be back of him.

The world, unfortunately, is not yet wholly
made up of such communities. The General As-
sembly must still play a limited role based largely
on the constructive power of world public opinion.
This state of affairs has not been fully appreciated
in the two great issues with which the United
Nations is still seized.

The United States, because of the leading role
it has played in this General Assembly, has shared
to a considerable degree both the public approval
of the United Nations successes and the criticisms
of its failures.

In this connection, may I remind you that the
United Nations can only do what its members want
and permit it to do. We should not make the mis-
take of blaming the organization for the doubts,
the uncertainties, and shortcomings displayed by
its members.

The Crises in Egypt and Hungary

The problems presented to the United Nations
by the crises in Egypt and Hungary are well
known. There was a fundamental difference in
the nature of these problems, however. In Hun-
gary Soviet troops, ostensibly there to protect
Hungarian territory from outside aggression,
turned their guns inward against the defenseless
Hungarian people. In Egypt, on the other hand,
the clash was between the armed forces of the
states involved.

Moreover, the Israeli attack occurred after a
long series of serious provocations and violations
of the Armistice Agreement. There was no such
conceivable excuse in the case of the Soviet use of
armed force against Hungary.

Events so turned out that the United States
found itself taking the lead in United Nations ac-
tion in the case of both Egypt and Hungary. In
neither instance did we really have any choice of
the role we were to play. Both were instances
of the use of force against the territorial integrity
of another state.

556

In the former case, it was our grievous task to
bring the charge of violation of the United Na-
tions Charter against our friends and allies ; in the
latter, against a government and a system which
is the implacable foe of freedom.

We pride ourselves on being a nation of laws,
not of men. The charter likewise provides that
nations conduct their relations on the basis of
international law and justice. We had to say
to ourselves that, if we ever hope to get anywhere
with the peaceful settlement of disputes, we must
constantly take a stand against recourse to mili-
tary force, as a matter of principle and in the in-
terest of our own Nation as well as world peace.
Speaking to the Nation on the Middle East situa-
tion on February 20,^ President Eisenhower said :
"It is an issue which can be solved if only we will
apply the principles of the United Nations."

Our reason for going to the United Nations,
then, was to defend this fundamental principle —
not because we were pro- Arab or pro-Israel or
anti-Russian or because we were for or against
any state or group of states.

I think there was no lack of public support
in this country for the decisions taken by the
United Nations on both areas of conflict. There
was, however, great public impatience with the
delay in the Middle East and the flat refusal
in Hungary to comply with the resolutions
adopted by the General Assembly. It was quickly
forgotten that in both cases what the United Na-
tions was trying to do was dependent on the volun-
tary cooperation of the offending states and the
states offended against. The reason for this, of
course, is that only the Security Council may take
decisions of a compulsory character in such in-
stances. With the power of the Security Council
weakened by the veto, the United Nations has had
to fall back on the General Assembly, which has
only the power to recommend.

Given these circumstances, we should be en-
couraged by what the United Nations has so
far accomplished in the Middle East. It has
shown that the conscience and the moral consensus
of the vast majority of United Nations members,
when the chips are down, favor peaceful settle-
ment of disputes and adherence to commitments
assumed under the charter, even when such course

' Bulletin of Mnr. 11, 1957, p. 387.

Department of Slate Bulletin

seems to run counter to individual national
interest s.

In the case of Hungary, the United Nations'
inability to secure compliance with its repeated
recommendations has caused deep concern not
only among the American people but among free
peoples everywhere. In the circumstances, it has
been natural for segments of public opinion to
oversimplify the problem in seeking to place the
blame. It has been charged that the United Na-
tions is weak and futile; it has been urged tliat
Hungary and the Soviet Union be tlirown out of
the United Nations for their defiance ; it has been
argued that the United Nations and the United
States have applied a "double standard" — one for
the weak and one for the strong.

I would like to attempt some clarification of
this latter point. In his broadcast to the Ameri-
can people on October 31st ^ President Eisen-
hower said : "There can be no peace without law.
And there can be no law if we were to invoke
one code of international conduct for those who
oppose us and another for our friends."

Though he was speaking about the attack on
Egj'pt, the record shows that the United States
and the United Nations consistently adhered to
this principle. The standard applied to the use
of force in Egypt was likewise applied in Hun-
garj\ The essential difference was that the coun-
tries directly concerned in the Middle East crisis
responded to offers of United Nations assistance
to bring about a peaceful settlement. In Hun-
gai-y, such assistance was refused. Had the re-
sponse been the reverse, there would now be no
United Nations Emergency Force in the Middle
East, with a deterioration of the situation there
which I leave to your imagination.

The Hungarian Situation

The crux of the problem of Hungary was, what
can the United Nations do when one of the major
powers refuses to cooperate with the General
Assembly ?

The answers are fairly simple but not very satis-
factory. We could attempt to expel it from the
United Nations. This is obviously not a practical
solution since the concurrence of the permanent
members of the Security Council is required.

^Ibid., Nov. 12, 1956, p. 743.
April 8, 7957

The General Assembly could recommend cer-
tain political measures, such as breaking diplo-
matic relations. Unless it could persuade a large
proportion of United Nations members to cooper-
ate, this would not be a very effective sanction
and in the case of the United States would cut
us off from a useful diplomatic contact.

The General Assembly could also recommend
economic sanctions. Again, unless a large num-
ber of nations could be persuaded to join in such
sanctions, the pressure exerted would be rela-
tively slight. This is especially the case with the
U.S.S.R. and its satellites, whose total resources
are great and whose economic relations with the
West are already on a very small scale.

There is, of course, the possibility of attempt-
ing to introduce United Nations observers, but
their entrance would require the consent of the
state concerned.

The final recourse would be to recommend the
use of military forces. There is not the remotest
likelihood, with the dangers involved in the atomic
age, that the United Nations would vote for such
action.

Depressing as this picture may be, it reflects the
situation in which the world finds itself today.
This does not mean, however, that, because out-
laws exist in the world community, the rule of
law should not be applied wherever possible.

May I add a word about the so-called "double
standard." This is nothing new. In effect, the
double standard was built into the charter when
the veto provision was inserted. This gave the
great powers a privileged position in the organ-
ization.

But I think that we seriously misread recent
history if we believe United Nations resolutions
on Hungary failed to have a harmful impact on
the Soviet Union and its satellite system. These
resolutions put the Soviet Union's barbarous mis-
deeds squarely under the white light of world
opinion. They did more to expose the diabolical
nature of international communism than almost
anything that has happened since World War II.
Perhaps more important, the inherent weakness of
a system that has to rely on force alone to im-
pose its will on the majority was shockingly re-
vealed.

The Secretary of State at Canberra last week
said, "Throughout the satellite area, there is a
revulsion against the brutal colonialism and ex-

557

ploitation of Soviet imperialism." It is my opin-
ion that this revulsion, as a result of the facts
revealed in General Assembly debate, has ex-
tended to the corners of the free world.

The Middle East

There was a great deal of public controversy
over the possibility of the United Nations' impos-
ing sanctions against Israel. Now it is true that
at one time it appeared that a majority of United
Nations members might have tried to impose sanc-
tions if other methods had failed to bring about
Israel troop withdrawal from Egj'pt and the Gaza
Strip. As a member of the United Nations, the
United States would have had to take its stand
on such an issue should it have arisen.

We believed it essential that Israel should with-
draw in its own best interests. This we felt was
a necessary prelude to a solution of other jjrob-
lems in the Middle East.

I think it significant that the use of traditional
bilateral diplomacy to supplement United Nations
action in the Middle East was of major im-
portance in preventing the matter of sanctions
from becoming a divisive issue in the United Na-
tions. In this connection, I would like to quote a
statement of the delegate of Ceylon made after
Israel had annomaced its intention to withdraw :

I, as a humble representative of a small nation, would
like to pay my tribute to the Government of the United
States of America for creating a set of circumstances which
enabled the withdrawal of Israel troops. It is, in my
opinion, a very useful act in the solution of the troubles
before us.

United States Position on Gaza and Sharm el-Sheikh

The United States position on the Middle East
problem has been made clear in various public
documents beginning with the February 11 aide
memoire.^ During the long weeks in which the
Assembly has been occupied with the Middle East,
we have sought a solution which would be based
on justice and which would take account of the
legitimate interests of all parties. On March 1
Israel announced that it had decided to make full
and prompt withdrawal behind the armistice lines
in accordance with the General Assembly's reso-
lution of February 2, 1957.

In the course of this announcement, the Foreign

Minister of Israel made certain declarations which,
for the most part, constituted restatements of
what had been said in the General Assembly or by
the Secretary-General in his reports, or hopes and
expectations which seemed to the United States
not unreasonable in the light of prior actions of
the Assembly.

On March 1, Ambassador Lodge, speaking for
the United States in the General Assembly,* took
note of the statement of the Secretary -General of
February 22d in which he reported Egypt's readi-
ness and willingness to make special and helpful
arrangements in Gaza with the United Nations
and some of its auxiliary bodies. In this connec-
tion, Ambassador Lodge said :

Obviously these matters are not for the United States
alone to decide, but the United States can, I think, prop-
erly entertain the hope that such a useful role for the
United Nations and its appropriate subsidiary bodies as
the Secretary-General has described could usefully con-
tinue until there is a definitive settlement respecting the
Gaza Strip or some final general agreement between the
parties.

With respect to the area along the Gulf of
Aqaba and the Straits of Tiran, the United States
position remains as stated in Ambassador Lodge's
speech :

It is essential that units of the United Nations Emer-
gency Force be stationed at the Straits of Tiran in order
to achieve there the separation of Eg.vptian and Israeli
land and sea forces. This separation is essential until it
is clear that the nonesercise of any claimed belligerent
rights has established in practice the peaceful conditions
which must govern navigation in waters having such an
international interest. All of this would, of course, be
without prejudice to any ultimate determination which
may be made of any legal questions concerning the Gulf
of Aqaba.

Since then developments in Gaza have moved
rapidly. We have kept in close touch with Sec-
retary-General Hammarskjold and with various
members of the United Nations. Just yester-
day Mrs. Meir, Foreign Minister of Israel, called
at the Department of State to express her "deep
concern at the return of Egypt to Gaza, the re-
establishment of its control therein and the reduc-
tion of the responsibilities of the United Nations
in the Gaza area." " Mrs. Meir pointed out that
Israel viewed this situation as contrary to the as-
sumptions and expectations expressed by her and

* Ibid., Mar. 11, 1957, p. 392.
558

' Ibitl., Mar. 18, 1957, p. 431.
' See p. 562.

Departmenf of State Bulletin

others in the United Nations on March 1 and sub-
sequently. She also expressed her anxiety at re-
ports and statements envisaging restrictions
against Israeli shipping in the Suez Canal and the
Gulf of Aqaba and tlie maintenance of belliger-
ency by Egypt.

Secretary Dulles reaffirmed that the United
States policy continued to be as expressed in
the speech of Ambassador Lodge in the General
Assembly on Marcli 1 and in the President's
letter of March 2 to Prime Mhiister Ben-Gurion.'
The Secretary reaffirmed "that the United States
would continue to use its influence in seeking
the objectives of peace and tranquillity and the
avoidance of any situation which would negate
the great ell'orts whicli had been made by the
world community to settle the current disputes
in accordance with the principles of the United
Nations Charter." The United States stands
firmly by the hopes and expectations it had ex-
pressed with respect to (1) the exercise of the
responsibility of the United Nations in Gaza, (2)
the free and innocent passage of the Straits of
Tiran by the ships of all nations in accordance
with international law, and (3) the settlement of
the Suez Canal problem in accordance with the six
principles adopted by the Security Council and
accepted by Egypt.*

This Government will use its influence in every
appropriate way to assist the Secretary-General
and the parties concerned to carry out the recom-
mendations of the Assembly and to create peace-
ful conditions in the area.

Very critical times remain with us. We have
made progress along the road toward our objec-
tives in the Middle East, but the road ahead is
long and difficult.

Our objectives have not changed. Through the
United Nations there have been accomplished a
cease-fire and the withdrawal of forces, and the
clearance of the Suez Canal has almost been com-
pleted. Immediately before us is the necessity for
agreeing on interim arrangements for use of the
canal and moving on to solution of the basic
problems which gave rise to the present crisis. It
is not sufficient to put out the fire ; we must prevent
it from breaking out again.

Getting at and removing the root causes is a
formidable task. It is more than enough to

' Bulletin of Mar. 18, 1957, p. 433.
' Ibid., Nov. 12, 1956, p. 754.

challenge the patience of a Job and the wisdom of
a Solomon. But can anyone seriously believe that
a lasting peace will be possible so long as the
boundaries between Israel and her neighbors re-
main unsettled and a feeling of insecurity pervades
the entire area? Can we hope to avoid serious
difficulties in the future unless real progress is
made toward the solution of the refugee problem
and the development of the area's natural re-
sources ?

The solutions to these problems are as difficult as
they are necessary. To find them, the United
States is determined to continue to use every ap-
propriate means both within and without the
United Nations. In the process, we shall be serv-
ing the cause of peace with justice everywhere.

Enlarged United Nations Membership

I would like now to turn briefly to a develop-
ment in the United Nations of great public inter-
est. That is the recent rapid increase in the size
of United Nations membership — especially from
Asia, Africa, and the Middle East. This reflects
one of the great phenomena of the postwar period.
In 12 years some 600 million people from this area
have gained self-government or independence.

The United Nations is open for membership to
all peace-loving countries able and willing to carry
out the obligations of the charter. The United
States favoi-s, within this definition, a United Na-
tions as broadly representative as possible.

A United Nations that has grown in less than 2
years from 60 to 81 members and in which the
Afro- Asian states now constitute more than a
third of the total presents new problems and, I
think, new opportunities. I do not believe that it
is necessarily cause for alarm.

Those who are concerned point to the fact that
the Assembly rather than the Security Council
has become the voice of the United Nations and
its most influential body. The relative strength
of the Latin American States has been reduced.
The conflict over so-called colonial problems has
been sharpened. With the recent increase in
membership the Afro-Asian nations alone, if they
stood together, could no doubt prevent the pas-
sage of any important resolution.

This situation requires careful consideration.
In actuality, aside from the U.S.S.R. and its
satellites, these blocs do not often vote as an entity.
We think of Afro- Asia as a unit. In fact, it is

April 8, 1957

559

extremely diverse and contains subblocs of an
ethnic, religious, or political nature.

On certain fundamental issues the Afro- Asian
nations do stand very solidly together. I refer
particularly to colonialism and economic develop-
ment. On these issues they are often joined by
the so-called Latin American bloc.

The fact is that the people of the world, regard-
less of their military or economic strength, want
an increasing voice in world affairs. In the
United Nations, and especially in the Assembly,
they find this voice. The traditionally great
powers of the West, whose greater economic
and militaiy strength gives them a preponderance
of authority and responsibility, must heed this
voice if they desire wide support for their policies
and actions. They do not have to heed it, of
course, and the Assembly cannot enforce its recom-
mendations on other members.

In my opinion, what is required of United
Nations members in the enlarged General As-
sembly, where each state has one vote, is a special
sense of responsibility. The smaller and under-
developed countries do have a collective power far
out of proportion to their economic, military, and
political strength. If they abuse this power, the
General Assembly can become a center of conten-
tion and deadlock. On the other hand, the gi'eat
powers, if their cause is just, should not lack the
support of the majority of the General Assembly
on important issues.

I believe, if we examine the record, that the
performance of the 11th General Assembly re-
flected in general this sense of responsibility of
which I speak. On the Algerian question, for
example, two Asian states, Japan and Thailand,
played a leading role in developing a procedural-
type resolution wliich avoided exacerbating the
situation.^ This was an excellent example of As-
sembly moderation and restraint. On the Cyprus

question, the General Assembly avoided preju-
dicing any substantive solution by adopting a
simple resolution which has helped maintain an
atmosphere reasonably conducive to future nego-
tiations.'" Here, too, an Asian state, India, was
able to work out a compromise resolution gen-
erally acceptable to those principallj' concerned.
In conclusion, I should like to quote from an
editorial in a recent issue of your magazine,
Council Wotrum:

One thing Is certain. The United Nations i.s the one
solid hope of humanity for a peaceful and better world ;
and the United States can and must be its strongest
supporter.

If the nations of the world had been compelled
to live the past 12 years without a conmion meet-
ing place, without basic rules by which nations
should conduct themselves, without machinery for
the peaceful settlement of their differences, with-
out a place to air disputes and seek agreements —
then it is my opinion that the world might not
have survived those 12 years. The stresses and
strains have been so great, the ideological conflict
so sharp, and the destructive power of the
weapons available so immense that without the
unifying power of the United Nations we could
have, by this time, destroyed ourselves.

If the United Nations is indeed the one best
hope we have for peace with justice, it is only
common sense to use it as the cornerstone for a
soimd, creative foreign policy-. This does not
mean that the United Nations dictates foreign
policy to us or any other country. But enlight-
ened self-interest dictates that we bend every
effort to make the United Nations serve with in-
creasing effectiveness the common desires of man-
kind for a world in which ''Life, Liberty and the
pursuit of Happiness" are not only possible but
attainable.

'Ibid., Mar. 11, 1957, p. 423.

'"Ibid., JIar. 25, 1957, p. 50S.

560

Department of Slate Buflelin

United States and United Kingdom Excliange Views
at Bermuda Meeting

Following is the text of a joint communique
with annexes issued at Tucker's Town^ Bermuda,
on March 24- l>y President Eisenhower and British
Prime Minister Harold Macmillan at the close of
a 3-day meeting, March 21 to 2!i. {White House
press release dated March 2 J).).

The President of the United States and the
Prime Minister of the United Kingdom, assisted
by the United States Secretary of State and the
British Foreign Secretary and other advisers, have
exchanged views during the past three days on
many subjects of mutual concern. They have con-
ducted their discussions with the freedom and
frankness permitted to old friends. In a world
of growing interdependence they recognize their
responsibility to seek to coordinate their foreign
policies in the interests of peace with justice.

Among the subjects discussed in detail were
common problems concerning the Middle East,
Far East, Nato, European Cooperation, the re-
unification of Germany, and Defense.

The President and the Prime Minister are well
satisfied with the results of this Conference, at
which a number of decisions have been taken.
They intend to continue the exchange of views
so well begun.

The agreements and conclusions reached on the
main subjects discussed at the Conference are
annexed.

ANNEX I

1. Eecognition of the value of collective security
pacts within the framework of the United Na-
tions, and the special importance of Nato for both
covmtries as the cornerstone of their policy in the
West.

2. Reaffirmation of common interest in the de-
velopment of European unity within the Atlantic
Community.

3. Agreement on the importance of closer asso-
ciation of the United Kingdom with Europe.

4. Agreement on the benefits likely to accrue
for European and world trade from the plans for
the common market and the Free Trade Area, pro-
vided they do not lead to a high tariff bloc ; and on
the desirability that all countries should pursue
liberal trade policies.

5. AVillinguess of the United States, under au-
thority of the recent Middle East joint resolution,
to participate actively in the work of the Military
Committee of the Baghdad Pact.

6. Eeaffirmation of intention to support the
right of the German people to early reunification
in peace and freedom.

7. Sympathy for the people of Hungary ; con-
demnation of repressive Soviet policies towards
the peoples of Eastern Europe, and of Soviet de-
fiance of relevant United Nations resolutions.

8. Agreement on the need for the speedy im-
plementation of recent resolutions of the United
Nations General Assembly dealing with the Gaza
Strip and the Gulf of Aqaba.

9. Agreement on the importance of compliance
both in letter and in spirit with the Security Coun-
cil Resolution of October 13 concerning the Suez
Canal, and on support for the efforts of the Secre-
tary-General to bring about a settlement in ac-
cordance with its provisions.

10. Joint declaration on policy regarding
nuclear tests (See Annex II).

11. Agreement in principle that, in the interest
of mutual defense and mutual economy, certain
guided missiles will be made available by the
United States for use by British forces.

Apr/7 8, 7957

561

ANNEX II

1. For a long time our two Governments have
been attempting to negotiate with the Soviet Union
under the auspices of the United Nations Dis-
armament Commission an effective agreement for
comprehensive disarmament. We are continuing
to seek sucli an agreement in the current disarma-
ment discussions in London. In the absence of
such an agreement the security of tlie free world
must continue to depend to a marked degree upon
the nuclear deterrent. To maintain this effec-
tively, continued nuclear testing is required, cer-
tainly for the present.

2. We recognize, however, that there is sincere
concern that continued nuclear testing may in-
crease world radiation to levels which might be
harmful. Studies by independent scientific organ-
izations confirm our belief that this will not hap-
pen so long as testing is continued with due
restraint. Moreover, the testing program has dem-
onstrated the feasibility of greatly reducing world-
wide fallout from large nuclear explosions.

3. Over the past months our Governments have
considered various jDroposed methods of limiting
tests. We have now concluded together that in
the absence of more general nuclear control agree-
ments of the kind which we have been and are
seeking, a test limitation agreement could not to-
day be effectively enforced for technical reasons;
nor could breaches of it be surely detected. We
believe nevertheless that even before a general
agreement is reached self-imposed restraint can
and should be exercised by nations which conduct
tests.

4. Therefore, on behalf of our two Governments,
we declare our intention to continue to conduct
nuclear tests only in such manner as will keep
world radiation from rising to more than a small
fraction of the levels that might be hazardous.
We look to the Soviet Union to exercise a similar
restraint.

5. We shall continue our general practice of
publicly announcing our test series well in ad-
vance of their occurrence with information as to
their location and general timing. We would be
willing to register with the United Nations ad-
vance notice of our intention to conduct future nu-
clear tests and to permit limited international ob-
servation of such tests if the Soviet Union M'ould
do the same.

562

Meeting Between Secretary Dulles
and Israeli Foreign Minister

Following is the text of an agreed statement
released on March 18 (press release 155) folloio-
ing a meeting ietween Secretary Dulles and Israeli
Foreign Minister Golda Meir.

Israeli Foreign Minister Meir discussed with
Secretary Dulles today various aspects of the
present situation in the Middle East, particularly
developments in the Gaza Strip following Israeli
withdrawal in accordance with the United Nations
resolutions.

SIi-s. Meir expressed her deep concern at the
return of Egypt to Gaza, the re-establishment of
its conti'ol therein and the reduction of the re-
sponsibilities of the United Nations in the Gaza
area. The Foreign Minister of Israel pointed out
the gravity with which Israel viewed this situation
and emphasized that it was contrary to the as-
sumption and expectations expressed by her and
others in the United Nations on March 1 and
subsequently. She also expressed her anxiety at
reports and statements envisaging restrictions
against Israeli shipping in the Suez Canal and
the Gulf of Aqaba, and the maintenance of bel-
ligerency by Egypt.

Secretary Dulles reaffirmed that the U.S. policy
with respect to these matters continued to be as
publicly expressed, notably in the speech of Am-
bassador Lodge in the United Nations General
Assembly on March 1 and in the President's letter
of March 2 to Prime Minister Ben-Giu-ion.^ The
Secretary said that the United States was con-
cerned with current developments and was in
close touch with U.N. Secretary General Ham-
marskjold and other members of the U.N. He
said that the United States would continue to use
its influence in seeking the objectives t>i peace
and tranquillity and the avoidance of any situa-
tion which would negate the great efforts which
had been made by the world conununity to settle
the current disputes in accordance with the princi-
ples of the United Nations Charter. The United
States, the Secretary said, stood firmlj' by the
hopes and expectations it had expressed with re-
gard to the situation which should prevail in the
area with i-espect to the exercise of the responsi-

' Bulletin of Blar. IS, 105V, p. 431.

Department of State Bulletin

bility of the United Nations in Gaza, the free and
innocent passage of the Straits of Tiran bj' the
ships of all nations in accordance with interna-
tional law, and the settlement of the Suez Canal
problem in accordance with the Six Principles
adopted by the Security Council and accepted by
Egypt.^

A common readiness was expressed for con-
tinued consultation on these matters.

Death of President Magsaysay
of the Philippines

statement by President Eisenhower

White House (on board the U.S.S. Canherra) press release dated
March 17.

In the tragic death of President Magsaysay, the
people of the Philippine Republic, as well as those
of the United States and the entire free world,
have lost a valiant champion of freedom.^ I had
been looking forward to meeting with President
Magsaysay in Washington, to reaffirm the close
and affectionate ties all Americans have with his
people.

A stanch advocate of independence for his peo-
ple, President Magsaysay was also an active and
determined fighter against communism. He will
be greatly missed.

Mrs. Eisenhower and I extend to his family not
only our personal sympathies but also the heart-
felt sj'mpathies of all Americans, who have lost a
good friend.

Statement by Secretary Dulles

Press release 154 dated March 18

The tragedy that claimed the life of President
Magsaysay came as a grievous shock. I am sure
all Americans join me in extending to our close
friends of the Philippines our heartfelt condo-
lences in the loss of their beloved President.

President Magsaysay was a great Philippine
leader and an enlightened champion of the welfare
of his people. He also provided a glorious ex-
ample to the whole of Asia, and indeed to the
world, of wisdom, courage, and success in over-
coming the Communist menace.

■IhUl., Oct. 22, 1956, p. 616.

' President Ramon Magsaysny was killed in the crash
of an airliner on Cebu Island on Mar. 17.

In the death of President Magsaysay there has
been lost to the Philippine people a noble leader,
to the American people a true friend, and to the
world a stalwai-t champion and exponent of the
right of peoples to govei"nments of their own
choosing and to basic human freedoms.

Anniversary of Establishment
of Pakistan as Republic

Press release 172 dated March 23

Following is the text of a message sent by Presi-
dent Eisenhower to the President of Pakistan on
March 23 on the occasion of the first anniversary
of the establishment of Pakistan as a Republic.

His Excellency

ISKANDER MiRZA

President of Pakistan
Karachi

I take great pleasure in extending to you and
to the people of Pakistan warmest greetings and
best wishes from the people of the United States
on the first anniversary of the establishment of
Pakistan as a Republic.

Pakistan has proved to the world again that a
free people, with resolute faith and enduring
coiu'age, working together in a common cause, can
sui-mount the many difficulties that inevitably face
a new nation. You have made conmiendable
progress since independence. I am confident that
even gi-eater achievements lie aliead.

The United States values its close and cordial
ties with Pakistan. This anniversary affords me
a welcome opportunity to reaffirm the importance
I attach to the warm friendship between our two
coimtries. I have every reason to believe that as
free, independent democracies dedicated to the
basic principles of peace and justice our two coun-
tries can look forward to ever closer friendship
in the years ahead.

DwiGiiT D. Eisenhower

New U. S. Member Assumes Duties
on Iraq Development Board

Press release 167 dated March 21

The U.S. member of the Iraq Development
Board, Clifford Willson, has arrived at Bagh-
dad to take up his duties on the board. He suc-

Aptil 8, 7957

563

ceeds Wesley K. Nelson, who served for 4 years
as the U.S. member.

Mr. Willson's arrival at Baghdad will make it
possible for him to participate in the observance
of Iraq Development Week, which begins on
March 23.

In providing a member for the Development
Board, the United States has taken note of the
vigorous strides which Iraq is making toward im-
provement of the living standards of all its people.
Iraq's farsighted economic development program,
supported by wise and intelligent use of revenues
from its own resources, stands as an inspiration
to other newly developing countries. It has been
a source of gratification to the Government of the
United States to be associated with Iraq in co-
operative efforts to make the most effective use of
available resources in redeveloping the historic
lands of the Tigris and Euphrates. The several
major projects to be dedicated during Develop-
ment Week testify to the very real benefits to the
people of Iraq of this progressive program and of
the cooperative spirit which animates it.

I liter- American Highway
Nearing Completion

Press release 156 dated March 18

The awarding on March 15 of a contract for
grading a 17-mile impassable section of the Inter-
American Highway between Concepcion, Panama,
and the Costa Rican border initiated the first step
in closing the last remaining roadway gap between
the United States and the Canal Zone. The event
marks the near approach to completion of an un-
dertaking of the United States in cooperation with
Guatemala, El Salvador, Honduras, Nicaragua,
Costa Rica, and Panama begun in 1934.

Impetus was given the Inter- American High-
way program in 1955 when President Eisenhower
recommended that sufficient funds be provided for
financial and technical assistance to complete the
project at the earliest possible date.^ As a result,

' For text of the President's letters to the Congress
dated Apr. 1, 195.5, on the need for accelerating completion
of the highway, together with a map of the Inter-Ameri-
can Highway, see Bulletin of Apr. 11, 1955, p. 595.

Congress, in the summer of 1955, appropriated
$62,980,000. Rapid progress has been made since
that time. The original agreements with the re-
spective governments were negotiated by the De-
partment of State, and engineering supervision
and fiscal accountability for U.S. funds have been
provided by the Bureau of Public Roads of the
Department of Commerce. The United States is
paying two-thirds of the cost of projects, and one-
third is paid by the country in which the work is
located.

Of the 1,600 miles of the highway lying between
the southern border of Mexico and the Panama
Canal, there remained, as of July 1955, 1,080 miles
upon which improvement of some type was re-
quired to bring the highway to an acceptable
standard for normal year-round travel. Within
this unimproved mileage, there was a total of 173
miles where no passable highway existed. This
total was made up of 25 miles just south of the
Mexican border in Guatemala, 131 miles in
southern Costa Rica, and the 17-mile section in
northern Panama now to be begun. Awarding of
a contract for this section in Panama places all
impassable sections under construction. In addi-
tion, 490 miles of low-standard road are being im-
proved. Much work remains to be done, includ-
ing necessary improvements on an additional 370
miles. Many bridges are yet to be built, and some
1,000 miles of road will require final asphalt
pavement.

The present dry season which began in Decem-
ber will see the greatest construction activity on
the highway since its start. The last of the im-
passable sections is now under contract, and some
time in 1957 it should be ^wssible to drive over all-
weather or paved roads from the United States to
San Isidro, Costa Rica, a distance of 2,725 miles.
By the end of 1958 it may be possible to drive over
the entire length of the highway to the Panama
Canal.

Tourist travel over the Inter- American High-
way has already brought great benefits to the econ-
omy of Mexico. By 1959 other Central American
countries should benefit also. Feeder roads con-
necting now inaccessible areas with the main
artery are expected to develop rapidly with a
marked increase in domestic and foreign trade.

564

Department of State Bulletin

U.S. Contribution To Help Fight
Malaria in American Republics

Press release 119 dated March 7

Milton S. Eisenliower, President Eisenhower's
representative on the Inter- American Committee
of Presidential Eepresentatives, presented a check
for $1,500,000 on March 7 to Dr. Fred L. Soper,
Director of the Pan American Sanitary Bureau,
as a contribution from the U.S. Government
toward malaria eradication in the other American
Republics.

The ceremony took place in the Pan American
Union building in the office of Jose A. Mora, Sec-
retary General of the Organization of American
States. Jolin B. Hollister, Director of the Inter-
national Cooperation Administration ; Dr. LeRoy
E. Burney, Surgeon General of the U.S. Public
Health Service, Department of Health, Educa-
tion, and Welfare; and Jolm C. Dreier, Ambassa-
dor of the United States to the Organization of
Amei'ican States, were among those attending the
ceremony. Following are the texts of remarks
made by Dr. Eisenliower, Dr. Mora, and Dr.
Soper.

Remarks by Dr. Eisenhower

Mr. Secretary General, Dr. Soper, and Gentle-
men : I am very happy to be able to participate in
this ceremony this morning. We have gathered
in the Pan American Union in recognition of the
vital role that the Organization of American
States is playing in efforts to advance human well-
being and. social progress in this hemisphere.

Historically, malaria has been a major foe of
economic and social progress for the American
Republics. It is still a scourge in many areas,
affecting either directly or indirectly evei-y indi-
vidual on the continent. Experience indicates
that malaria can be conquered with new weapons
which are now available. The Pan American
Sanitary Organization has played a leading part
in their development and use. Malaria has been
eradicated from several countries, including the
United States. We all share an eagerness that
it be eradicated with all possible speed from coim-
tries where it still exists.

Great interest has been expressed by the Inter-
American Committee of Presidential Representa-
tives in the role of the Organization of American

States in supporting programs for the eradication
of disease from the continent. It was my privi-
lege to announce to the members of this Committee
at its first meeting last September that the United
States was going to make a special contribution
to the malaria eradication fund of the Pan Ameri-
can Sanitary Organization. This offer was sub-
sequently made formally by the acting United
States representative at a meeting of the Directing
Council of the Sanitary Organization and is now
being implemented by a grant from the Interna-
tional Cooperation Administration. In present-
ing this check for $1,500,000, 1 hope that tliis ex-
pression of United States interest and the splendid
efforts which are being made by so many countries
will hasten the attainment of this great humani-
tarian goal of malaria eradication.

Remarks by Dr. Mora

I wish to express on behalf of the Organization
of American States and of the people of the
American Republics the most profound apprecia-
tion for this most generous contribution of the
Government of the United States to the solution
of what has been characterized as the most urgent
health problem in the Americas, the eradication
of malai-ia.

Dr. Eisenhower, may I express to you and
through you to the Government of the United
States our deepest appreciation for this renewed
demonstration of support for inter-American pro-
grams which contribute to the advancement of
human welfare of all the people of the Americas.

I now turn this contribution over to Dr. Soper,
Director of the Pan American Sanitary Bureau,
our inter- American specialized organization in the
field of public health.

Remarks by Dr. Soper

Mr. Secretary General, Dr. Eisenhower, and
Gentlemen : It is with a sense of profound grati-
tude that I accept on behalf of the Pan American
Sanitary Organization this contribution by the
United States Government to the campaign to
eradicate malaria from this hemisphere.

Malaria is still a leading cause of death in many
parts of the world, including some areas in the
Americas. Its continued existence anywhere in
this hemisphere threatens reinfection in all areas
where malaria has been eradicated.

April 8, 1957

565

Science has given us a powerful new weapon in
the residual insecticides such as DDT, which make
the eradication of malaria possible and practicable
throughout the Americas. But there is also a
deadline we must meet, since mosquitoes eventu-
ally develop resistance to these insecticides. If
we move too slowly, the job becomes vastly more
difficult and costly. This is why we have given
first priority to the malaria eradication program.
The Pan American Sanitary Organization is urg-
ing governments to expand and accelerate their
national eradication programs.

There has been an excellent response, and many
governments are expecting our Bureau to give
them greater administrative and professional col-

laboration in furtherance of their eradication
programs. These demands have far exceeded our
means, and we have been forced to seek additional
resources.

And that is why, Dr. Eisenhower, we appreciate
so much this timely contribution from the United
States Government. It will enable us to move
ahead more rapidly in all the territories of the
Americas where malaria continues to exist.

On behalf of the Pan American Sanitary Or-
ganization I express our heartfelt appreciation
for this generous contribution. It is an added
demonstration of solidarity in our campaign to
eliminate malaria from our shores.

Amending the U.S. Information and Educational Exchange Act of 1948

Statement hy E. Allan Lightner, Jr.

Acting Assistant Secretary for Public Affairs ^

It is a privilege to appear before this committee
in support of certain amendments to the United
States Information and Educational Exchange
Act of 1948, sometimes referred to as the Smith-
Mundt Act.

Role of Office of Public Affairs

AVhen this act was passed in 1948, all of its
functions were placed in the Department of State
under the general direction of the Office of Public
Alfaii-s. With the establishment of the United
States Information Agency, and the transfer of
information activities to that Agency, the Depart-
ment retained two important functions in con-
nection with this act :

(1) the supervision of the noninformation
functions authorized by the Smith-Mundt Act;
and

' Made before the Subtommittee on State Department
Organization and Foi-ei^rn Operations of the House Com-
mittee on Foreign Affairs on Mar. 13 (press release 143).

(2) foreign-policy guidance to the United
States Information Agency.

The principal noninformation function pro-
vided by this act is the educational exchange pro-
gram conducted by the International Educational
Exchange Service of the Department under the
general supervision of the Assistant Secretary for
Public Affairs. The Secretary of State is also re-
sponsible for certain exchanges of personnel car-
ried out by the International Cooperation Ad-
ministration in connection with its technical
assistance program.

My comments are principally concerned witli
the amendments pertaining to the responsibilities
of the Department of State in conducting the edu-
cational exchange program. I can also assure you
that the Department favors the amendments deal-
ing with the information program.

When this act was originally passed, the House
Foreign Affairs Committee was literally pioneer-
ing in a new field. It is really quite remarkable

566

Department of Sfafe Bulletin

that during the intervening years no major
amendments have been required in the act. This
certainly illustrates the care and foresight of those
who sponsored and enacted the original legisla-
tion.

Only recently has it become apparent, as a result
of the cumulative experience in administering this
increasingly complicated program over the years,
that certain amendments to this act of 1948 are
needed.

Before explaining these changes, a brief review
of the scope of the International Educational Ex-
change Program and the relationship between the
Smith-Mundt and Fulbright parts of it may be
of interest.

Scope of Educational Exchange Activities

The authority for the annual appropriations for
all of the activities of the International Educa-
tional Exchange Service of the Department is de-
rived from the Smith-Mundt Act. This act is also
the authority under which the Department re-
quests the appropriated foreign currencies pro-
vided for under the Fulbright Act (Public Law
584, 79th Congress) . Included in the authorized
activities are the following:

( 1 ) the operation of the various educational ex-
change programs, including the exchange of per-
sons, their orientation and f ollowup ;

(2) the program of assistance to American-
sponsored schools in Latin America;

(3) the approval and facilitation of hundreds
of privately sponsored exchange pi-ograms desig-
nated as exchange- visitor programs and involving
the bringing of thousands of persons to the United
States ;

(4) assistance to other private programs involv-
ing the exchange of persons between the United
States and other countries ;

( 5 ) the responsibilities of the Secretary of State
for participation in cultural conventions and other
cultural activities between the United States and
other countries and the backstopping of such in-
ternational cultural activities as those conducted
by the Cultural Coimcil of the Organization of
American States, North Atlantic Treaty Organi-
zation, Southeast Asia Treaty Organization, etc. ;
and

(6) the coordination of these exchange and cul-
tural activities into a combined effort to insure

their maximum effectiveness in our foreign rela-
tions programs.

Relationship Between the Smith-Mundt and Ful-
bright Programs

TIio Smith-Mundt Act authorizes dollar appro-
priations for reciprocal exchanges on a worldwide
basis. For example, in 1958 we plan to conduct
programs under this act with 87 countries. Pro-
grams under the Fulbright Act, on the other hand,
are restricted to countries with which we have
specitic Executive agreements that make available
nonconvertible foreign currencies for this purpose.
It is anticipated we will have such agreements
with some 33 coimtries in 1958. Another limita-
tion on Fulbright funds is their use in connection
with schools and institutions of higher learning
Iiere and abroad. They could not be used to bring
foreign leaders here on short visits or for other
programs that are not strictly in the educational
field. The fact that the Fulbright funds are avail-
able only in nonconvertible foreign currencies is
another limitation. They can be used only for ex-
penses within the participating foreign countries
and for international travel.

In practice, tliis means that the program under
the Fulbright Act has to have a certain amount
of dollar support to supplement the foreign cur-
rencies provided. This works out at the ratio of
about $1 in U.S. currency for every $2 in foreign
currencies. The dollar currencies are used for ex-
penses of foreign participants while they are in
the United States and for the dollar costs of the
stateside and overseas services requii'ed to carry
out the program. I refer liere to appropriated
dollars. In addition to these cash outlays, max-
imum use is made of private scholarships and as-
sistance from other private sources. The total
value of such private financial support is a major
factor in the success of the Fulbright program, as
it approximates the amount of foreign currency
expended each year.

I believe you will see from the foregoing that
a joint operation of these two types of programs
in countries where both are authorized is a neces-
sity. We are constantly seeking to effect a closer
integration, and, in fact, one of the amendments
we are now proposing (section 5) is designed to
"bring about still further coordination between
these two programs.

April 8, 1957

567

Estimated Cost of Amendments

The estimated annual cost to the Department of
all these amendments will be approximately
$320,000. However, in our judgment, the im-
provement in program effectiveness will more
than offset this amount. The Department will not
request additional funds for fiscal year 1958 for
these purposes but will reprogram its regular
funds to cover any additional costs.

Changes Between Present Bill and S.3638 Considered
Last Year

The bill you are now considering differs in
some respects from the one the committee consid-
ered last year. Some of the changes are editorial
in nature; others represent changes in substance
or the adding of safeguarding provisions in com-
pliance with comments or suggestions of the com-
mittee during the hearings last year. These will
be noted as the particular provisions are discussed.

Development of Projects

Section 1 is for the purpose of authorizing our
assistance to such projects as chairs of American
studies at institutions abroad and the holding of
short seminars or workshops on various branches
of American studies.

The chairs in American studies would be filled
by American professors or American-trained pro-
fessors. We have found that projects of this na-
ture engender binational support and produce a
greater cumulative effect than can be gained from
single isolated exchanges.

This provision would also permit us to arrange
for special seminars and workshops abroad. Such
meetings would bring together groups of Ameri-
can lecturers and researchers, already abroad
under this program or the Fulbright program,
for the purpose of presenting an intensive course
on particular phases of American life and
institutions.

These special seminars or conferences would be
attended by foreign nationals who had been ex-
change visitors under the program, as well as some
foreign nationals who had not had such an ex-
perience. For the former, this would be a "re-
fresher" or "followup" session that would keep
alive and fresh in their minds their American ex-
perience and would update or expand their knowl-
edge of our country. Such sessions should also
make a real impact on participants who have never

been to the United States, giving them an in-
sight into American studies and American educa-
tional techniques. For example, a group of for-
eign high school teachers of American history or
English could attend such sessions, even though
they might not be able to come to this country
under this program. The cost, of course, would
be much less than if we brought them to this
comitry.

Orientation for N on-V .S .-Government Students

Section 2 (a) authorizes orientation courses and
materials for exchangees who are not financed
under the Government program. "VVe now give
orientation to our own grantees. This would en-
able us to do the same, on a very selective basis,
for exchangees in nongovernmental programs sim-
ilar to ours.

We have in mind particularly the orientation of
foreign students participating in privately spon-
sored programs conducted by the Institute of
International Education. The standards used in
selecting these students are basically the same as
those for Government grantees, with our embassies
abroad assisting in the screening and selection.

Orientation usually consists of a 6-week aca-
demic program at selected colleges and universi-
ties, or a 4-week visit in the homes of individual
American families under a program supervised by
the Experiment in International Living.

The wording of this provision as compared
with that submitted last year has been tightened
up to assure that the orientation will be limited to
the types of programs the Government operates
and to those instances where we can determine
that such orientation will better equip the ex-
changee to further the objectives of this act.

Third-Country Exchanges

Section 2 {h) would permit nationals of a co-
operating country to attend selected institutions
in other cooperating countries and to participate in
meetings held in such other countries. Grants
under this provision would be awarded solely for
the purpose of studying subjects pertaining to the
United States and then only when it is determined
that urgent foreign-relations objectives will be
served.

Authority now exists in the Fulbright Act for
sending nationals of countries participating in
tliat program to American institutions abroad,
such as Robert College m Turkey. As already

568

Department of State Bulletin

mentioned, the Fulbright program is limited to
about 30 countries and therefore does not meet all
the urgent needs in this field.

We have in mind, for example, projects for
bringing together nationals of Tvebanon and sur-
rounding countries to take courses under Ameri-
can professors at the American University in
Beiiiit. Also nationals of Asiatic countries could
be brought to the Univei-sity of the Philippines or
the University of Taiwan to take intensive coui-ses
in American literature, American history, etc.,
under American professors and American-trained
professors. Such arrangements would also
broaden the audience, especially in terms of reach-
ing different nationality groups, for American
professors already assigned to certain of these
countries and thus add to their effectiveness.

Two slight changes in the previous language
have been made in the wording of this provision.
The first would permit the participation in meet-
ings held in places other than selected institutions
and places of study. It could include an audi-
torium or other such public place. The other
change makes it clear that this activity will not be
undertaken in any country controlled by interna-
tional communism. I can assure you also that in-
stitutions will be selected solely on the basis of our
assurance of their desire and ability to promote
ideas and principles in keeping with our basic
foreign-policy objectives.

Advisory Cormnission Membership

The first item of Section 3 will make officers of
State imiversities and land-grant colleges eligible
to serve on the U.S. Advisory Commission on
Educational Exchange. The present wording of
the act makes the holder of any compensated Fed-
eral or State office ineligible. It is our under-
standing that this was not intended to disqualify
officers of educational institutions, but it has this
effect in some States. We believe that all such
persons should be eligible for consideration for
membei-ship on this commission.

Annual Report by U.S. Advisory Commission to
Congress

Section k amends the present law to require re-
portmg by the U.S. Advisory Commission on
Educational Exchange to Congress on an annual
rather than a semiannual basis. More frequent
reporting was desirable in the earlier days of the

kptW 8, 1957

421092 — 57 3

pi'ogram, but the commission and we believe that
an annual report will not only be sufficient but also
that it will be more meaningful to the Congress.
The exchange program is planned and operated on
an annual basis. Thus, an annual report will
cover a logical program period. Should any sit-
uation arise which would make an interim report
desirable, such a report could be prasented on the
initiative of the commission, or at our request, or
at the request of the Congress.

Use of Binational Convmissions

Section 6 authorizes the use of existing bina-
tional commissions and foundations abroad in the
administration of the program. These commis-
sions are created imder the Fulbright Act for the
purpose of administering that program in each
country. Their use in connection with the Smith-
Alundt program will add a binational element that
has proved most effective in the Fulbright pro-
gram and will facilitate the joint administi"ation
of the combined programs.

No dollars are now available for these commis-
sions. Under the proposed arrangement a very
limited amount of dollars would be made avail-
able, primarily for payment of a portion of the
salary of the key American officer.

This provision differs from the proposal of last
year in that no authority is requested to create
additional commissions. We plan to use only
those established mider the Fulbright Act, since
one of the prmcipal purposes is to coordinate the
two programs.

Advice From Private Groups

Section 6 amends section 801(6) of the act in
two respects:

First, it authorizes the calling of meetings to ob-
tain advice and assistance of private and public
educational institutions and other similar organ-
izations. This would permit better cooperation
between governmental and nongovernmental ex-
change programs so that the effectiveness of both
would be increased. Persons attending such meet-
ings at the invitation of the Government would not
require full field investigations of the kind con-
ducted for persons employed or assigned to duty.
Such investigations are not considered necessary
since the persons attending would serve in ad-
visory capacities only and would not have access
to classified material.

569

There is general authority now (section 15 of
the act of August 2, 1946, 5 U.S.C. 55a) under
which individuals may be appohited and brought
in for consultation and advice, but speciiic author-
ity as a part of this act would be extremely helpful
in attracting the type of individuals needed for
this program.

There is authority now for creating advisory
committees. The meetings contemplated under
this additional authority, however, will be gen-
erally on a short-term basis, and we do not believe
we should formally create a committee just for
these purposes.

An editorial change has been made in this pro-
vision to eliminate unnecessary language.

$15.00 Per Diem for Commission Members

Second, Section 6 authorizes an increase from
$10.00 to $15.00 in the per-diem rates payable to
members of advisory commissions and committees.
Such persons serve without compensation. The
$15.00 rate conforms to the general rate now pre-
scribed for consultants and others serving without
compensation. The authority requested would
bring these commission and committee members
under the general legislation prescribing rates of
per diem for experts and consultants serving the
Government without compensation.

Emergency Medical Expenses

Section 7 includes an item (identified as subsec-
tion 5) which authorizes the payment of emer-
gency medical expenses for persons selected to
participate in the program. The lack of authority
to pay such expenses in emergency cases has given
rise to serious problems. Foreign participants
are really guests of this Government while in this
country, and the inability of the Government to
meet their emergency hospital and medical ex-
penses, which the individuals often are imable to
meet, places them and the Government in an em-
barrassing position. Similar problems arise in
the case of American participants abroad. Au-
thority is requested also to pay the expense of
travel incurred by reason of illness. In a number
of instances participants in the program have suf-
fered mental or physical disordei-s that require
their return home accompanied by an attendant.
The proposed provision would permit payment
of travel costs incurred under such circumstances.
This authority is urgently needed to meet emer-

gency situations as they arise. The number of
such emergencies, fortunately, has been very small.

Facilitating Exchanges of International Organr-
izations

Section 8 amends section 902 of the act to per-
mit the acceptance of funds from international
organizations for operation of programs author-
ized by the act. Authority now exists for the
acceptance of such funds from foreign govern-
ments. The additional authority is needed to per-
mit this Goverimient to accept funds for use in ad-
ministering some of the fellowship programs of
the United Nations. The funds would be ac-
cepted and used for only those specific projects
for which they are made available by such or-
ganizations. Our Govermnent is dedicated to a
policy of cooperation with the United Nations.
Lack of authority to accept funds ofi'ered by this
organization for the training of foreign nationals
in the United States under its programs has proved
a source of embarrassment to our Government.
This amendment would permit the desired co-
operation.

The section diti'ers from the one proposed last
year in a matter of language only. There is no
change in its substance.

Annual Report hy Secretary of State

Section 9 proposes a change in section 1008
which would permit the Secretary of State to
report to the Congress on the educational exchange
program amiually. He is now required to report
semiannually. Since a year is required to meet
a complete cycle of the exchange program, re-
ports presented on that basis would be more com-
plete and more meanmgful.

Settlement of Tort Claims

Section 10 includes authority to settle tort claims
arising abroad by both the Department and the
U.S. Information Agency. The expeditious
settlement of equitable claims will aid immeas-
urably in maintaining and promoting friendly
relations abroad.

This will enable the Department and the U.S.
Information Agency to settle all claims arising
out of their overseas operations on a basis simi-
lar to that used by the armed services. A uni-
form basis for settlement of such claims is highly
desirable.

570

Deparfmenf of Sfofe BuUeHn

Effectiveness of Educational and Cultural Exchange
Programs

Mr. Chairman, I appreciate the attention the
committee has given to tliis rather detaiknl ex-
phuiation. We are convinced that these amend-
ments to the act of 1948 will enable the Depart-

ment to improve the administration of the edu-
cational exchange program. That program has
become such a valuable instrument in the pur-
suance of our foreign-policy goals that I am
sui'e you will look with favor on anything we
can do to make it still more effective.

The Cold War and the Universities

iy Frederick Cable Oechsner

American universities are helping this country
with ideas and personnel to fight communism on
every cold-war battlefi'ont in the world. Even if
the cold war as we know it today should last for
50 years or more, the miiversities are directly con-
tributing to shaping a world of the future where
we may enjoy genuine peaceful coexistence instead
of the uncertain substitute for it with which we
are struggling today. Hungary and Egypt, and
before them Korea, Formosa, and Indochina, have
shown us how far we still have to go.

One encouraging thought to sustain us, in the
midst of disturbing news from satellite Europe
and the Middle East, is that, while man in his
million-year history has had many periods of irra-
tional and antisocial behavior, there has never
been a time when he made such an intense,
methodical, and intelligent attempt to under-
stand and improve his behavior as at present.

Never before have we had the instruments that
we have today for studying man in the matrix of
his particular culture — whether he be American,
Russian, Egyptian, or Israeli— and the way in
which his behavior and culture relate to other in-
dividuals and groups in the world. And never be-
fore, incidentally, have we had the very real in-
centive of possible annihilation to spur us on.

In discussing the role of universities in the cold
war, I use the latter term to describe the period
since the end of World War II, a period of intense
political, economic, and psychological as well as

military pressures, a period in which we find lit-
erally dozens of gi-eat cultural groups, each with
its own cherished pattern of behavior, locked in
a struggle for power and prestige.

Almost nothing seems more important to me in
the working out of our cold-war problems than
the actual movement of persons to one another's
countries. I refer not only to the coming of dele-
gates to the United Nations and other interna-
tional conferences but also to the interchange of
experience involved in the visits of educators, lec-
turers, labor leaders, doctors, lawyers, engineers,
students, scientists, and artists and also of groups
like orchestras, theater companies, and athletic
teams. I was greatly surprised, a year or two ago,
to see a young American girl broadcasting in
Serbo-Croat from the Zagreb radio station tx)
Yugoslav young people. She had studied the lan-
guage at Smith College and had been sent overseas
under the Department of State's international
educational exchange program.

Six thousand others like her this year, both

• Mr. Oechsner is principal officer of the
U.S. consulate at Monterrey, Mexico. His
article is hosed on an address which he made
at Tulane University, New Orleans, La., on
November 10, 1956, during a temporary
assignment in the United States.

April 8, 1957

571

American and foreign, will cross the oceans to
and from United States universities under this
program, at a cost of $20 million. Another 30,000
persons will be assisted by private industry, by
the great foundations like Ford, Rockefeller, and
Carnegie, and by hospitals and medical schools,
to study, teach, or do research at univei-sities here
and in 70 countries abroad.

A basketball clinic for coaches will be held
in Japan ; in Belgium the work of the first Center
for lie-education of Cerebral Palsied Children
will go on, as will that of a similar center in
Norway; a school of journalism will operate at
the University of Thammasat in Thailand,
another at Nagpur University in India. All these
programs have been made possible through the
exchange of skills and sympathetic understanding
between Americans and people abroad.

Inter-University Projects

In many instances the U.S. educational ex-
change program has been the means of establishing
direct cooperation between American and foreign
universities. In the field of such inter-university
work, there is also another excellent progi'am
financed by the International Cooperation Admin-
istration in Washington. Under this program 53
American universities have contracts with Ica,
totaling $53.6 million, for partnerships with uni-
versities in 38 countries abroad. (In some con-
tracts, private foundations like Ford and Rocke-
feller have taken over the financing when Ica's
term was through.) These contracts are in the
area of technical cooperation, and their yield to
the United States in this cold-war period can
hardly be exaggerated.

Tulane has one of these contracts for coopera-
tion with the University of Colombia in develop-
ing medical education. A Tulane doctor has gone
to Bogota to make the primary survey; repre-
sentatives of the University of Colombia will then
come to Tulane for training, work will be done
on such things as curricula and bibliogi-aphy for
the library, and a close joint eiiort will continue
throughout the life of the contract. The Delgado
Central Trades School in New Orleans has a con-
tract for cooperation with the School of Arts and
Crafts at Beirut, Lebanon, and another with the
Kampala Technical Institute in the Protectorate
of Uganda, Africa.

On every continent American universities are

helping to develop sound, stable societies through
unremitting effort in the very practical fields of
agriculture, education, engineering, public ad-
ministration, public health, housing, vocational
training, industrial development, home economics,
sanitation, and other areas critical in the struggle
to extend democracy.

The University of Michigan, for example, has
done an outstanding job with the University of the
Philippines in setting up an Institute of Public
Administration. Oklahoma A. and M. has helped
Ethiopia to establish an agricultural college.
North Carolina is in Peru, Minnesota in Korea,
Columbia in Afghanistan; Illinois, Ohio State,
Tennessee, Wisconsin, Rensselaer, and Kansas are
in India. Oregon is in Nepal. Others are in Iran,
Iraq, Jordan, Pakistan, Turkey, Libya, Indonesia,
Thailand, Viet-Nam, and Japan.

In Ethiopia, where a school was established with
American university assistance, 437 boys applied
for enrollment but only 79 could be accepted at
first. One lad trekked 800 miles to Addis Ababa
on foot, selling most of his clothes en route. With-
out food for the last 2 days, he arrived at the U.S.
Operations Mission so weak that he had to be taken
to a hospital — but not before he told why he had
come: to attend that new school the Americans
were helping to get started. He was accepted, I
may add.

In Iran 73 schools have been set up for children
of nomadic tribes, and the schools travel with the
tribes as they migrate. The same sort of thing is
being done for the Bedouins in Jordan. Tribal
chieftains were so enthusiastic over this first edu-
cational program ever attempted for these nomads
that they wanted to hold school 8 hours a day, 7
days a week.

Needless to say, most of these places are front-
line battlegrounds in the cold war and American
universities are there fighting communism tooth
and nail. Let me tell you what a distinguished
scholar wrote to his dean when sent abroad
recently to survey the need of a contract between
his university and a foreign institution :

This job will require men with a certain missionary
spirit, but such men can exert an influence that might
have tremendous significance in this forming nation. The
easy recommendation would be to stay out and avoid all
the headaches, and even possible failure. I cannot make
that recommendation. I say this because I do not care
to contemplate the alternative : to stay out and see this
nation slip into chaos and comnianism while we make no
eflfort to save it.

572

Department of Sfafe Bulletin

study of World's Cultures

I remember, as a young newspaperman in New
Orleans, interviewing the gifted Irish poet, James
Stephens, who wrote "The Crock of Gold" and
many other poems. Discussing the political for-
tunes of Ireland in the midtwenties, I asked
Stephens what he thought Ireland's best defenses
were. "Well," he replied, "we can always retreat
into the Gaelic language. Nobody will ever find
us there."

I submit that today it is impossible for the
Irish, or any other sizable group in the world, to
retreat into its own culture. The reason is that
our country, principally through its universities,
is now engaged in a remarkably complete study
of the different cultures of the world.

This research consists largely of what are called
"area study programs." To find out about them,
I went to the State Department's External Re-
search Staff, a unit of the Office of Intelligence
Research, which devotes full time to keeping
abreast of university research dealing with foreign
area and foreign policy problems. There I was
given details of literally thousands of inquiries
into the problems of particular geographical re-
gions, often a single country or a subgroup within
a country. These research projects are being
carried out by most of the country's universities
or individual scholars, with 40 institutions carry-
ing the major load of 81 full-scale programs.

The area study programs were taken up seri-
ously during and just after World War II to meet
the needs of Government policymakers and of
American business concerns for information on
economic, political, and social conditions abroad.
Since then, and especially in the last 5 years, the
area studies have expanded and intensified enor-
mously. Today they are financed not only by the
universities and by individuals but also by the
great private foundations like Ford, Rockefeller,
and Carnegie, and also, of course, by the Govern-
ment, which continues to be one of the great users
of this intelligence developed in the universities.

Tulane has at least two important area-study
projects: the Latin American Studies Program
and a special project on the penetration of West-
ern ideas into the political processes of West Afri-
can societies. The Latin American program has
yielded richly in completed studies, including
those on Guatemala, Cuba, the Dominican Repub-
lic, Mexico, and many others on current problems.

Harvard, under a contract with the Air Force,
has made microscopic studies of Soviet culture and
behavior. (The External Research Staff lists
well over 500 titles of research projects concen-
trated on Soviet Russia.) Through its Russian
Research Center, Harvard also helps in the spe-
cial language-and-area training given selected
Foreign Service officers who will work in Moscow
or satellite areas. Other universities prominent
in this training program, coordinated with the
Foreign Service Institute, are Columbia, Cornell,
Yale, Princeton, and Stanford.

At Yale a series of handbooks on 50 foreign
countries is being prepared for the Army for the
purpose of preparing personnel going ovei'seas to
make the adjustment to their new environment.

At the Massachusetts Institute of Technology,
the Center of International Studies, concentrating
on international communications, economics, and
U.S. relations with the Communist bloc, is produc-
ing work widely used in the Government. Mem-
bers of the faculty at the M.I.T. Center are con-
sultants to the Armed Forces and to the U.S. In-
formation Agency.

Other studies of utmost importance are those
in basic individual and gi-oup behavior dynamics ;
in intergroup tensions and the problems of co-
operation ; in our own American behavior and cul-
ture; in what the rest of the world thinks of us,
and why.

Fields for Further Expansion

I would like to point out a few ways in which
the Department of State feels that universities
might expand their activities if possible : (1) the
gi'anting of scholarships to qualified foreign stu-
dents; (2) stipends for foreign lecturers or re-
search scholars ; (3) establishing further ties with
particular foreign universities in fields of mutual
interest (you may recall that, at Baylor Univer-
sity not long ago. President Eisenhower imder-
scored the challenge to American universities and
graduates in "this great two-way avenue of con-
tacts") ; ' (4) encouraging well-qualified Ameri-
can students to apply for scholarships, government
or ijrivate, for study overseas; (5) encouraging
faculty members to apply for lecturing or research
positions abroad; (6) stressing the critical im-
portance of foreign-language study in our trade

' BuLLHOTN of June 4, 1956, p. 915.

April 8, 1957

573

and cultural relations with other countries. Not
only in the field of languages but in all others the
Government looks to the universities to develop
manpower for the Foreign Service.

Indeed, I can think of no more important func-
tion of the universities in the cold-vrar period than
the continued education of young people, and of
the entire adult population of the country, to un-
derstand themselves and the problems of their
age. They must learn to understand the culture
in which they were raised, including its weak-
nesses and faults, as well as the cultures of other
people.

I submit that, up to now, we have also used only
a fractional part of our social potential as nations
in learning to get along together rationally rather
than emotionally. I do not know that we will see
a "breakthrough" in our lifetime, and I am sure
that there will always be pathological individuals
like Hitler who identify the motivations of large
cultural groups with their own. But never, it
appears to me, has the light of knowledge and of
conscience been focused on these problems of be-
havior so sharply as today. I have tried to show
how the work of the American university fits into
this great struggle for the rational survival of
mankind.

U.S.-Dominican Agreement
on LORAN Station

Press release 161 dated March 19

The Governments of the United States and of
the Dominican Republic entered into an agreement
on March 19 by which the U.S. Government ac-
quires the right to establish a Long Eange Radio
Aid to Navigation (Loran) Station at Cape
Frances Viejo on the northern coast of the Domini-
can Republic.

This station, one of a series constituting a net-

work in various countries of the Caribbean and
other areas, will benefit air and sea navigation in
this increasingly congested area. It will be
manned by personnel of the U.S. Coast Guard.

United States and Japan Sign
Income-Tax Protocol

Press release 173 dated March 23

On March 23, 1957, the American Ambassador
to Japan, Douglas MacArthur II, and the Jap-
anese Minister of Foreign Affairs, Nobusuke
Kishi, signed at Tokyo a protocol supplementing
the income-tax convention of April 16, 1954,
between the United States and Japan.

The 1954 convention with Japan,^ like income-
tax conventions in force between the United States
and 18 other countries, contains provisions for the
avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes on income.
The protocol, upon entry into force, will supple-
ment the convention by providing that the Export-
Import Bank of Wasliington shall be exempt from
Japanese tax with respect to interest on loans or
investments received by such bank from sources
within Japan. Reciprocally, the Export-Import
Bank of Japan shall be exempt from United States
tax with respect to interest on loans or investments
received from sources within the United States.

The protocol, according to its terms, will con-
tinue in force concurrently with the 1954 conven-
tion unless terminated earlier by a 6 months'
written notice of termination given by either Gov-
ernment to the other Government.

The jirotocol will be transmitted to the Senate
for advice and consent to ratification. The text
of the protocol will be available in printed form
upon publication of the Senate Executive
document.

' Treaties and Other International Acts Series 3176.

574

Department of Slate Bulletin

Air Transport Agreement Between United States and Mexico

Press release 122 dated March 7
DEPARTMENT ANNOUNCEMENT

Francis White, United States Ambassador to
Mexico, and Licenciado Luis Padilla Nervo, Sec-
retary of Foreign Eelations for Mexico, concluded
on March 7 at Mexico City an exchange of notes
providing for an air transport agreement between
the two countries.

Tlie exchange of notes, incorporating the un-
derstanding between the two countries, establishes
the routes to be served by United States and Mexi-
can flag airlines and contains the principles under
which these routes will be operated.

The understanding between the two Govern-
ments also provides that the agi'eement shall be-
come effective 90 days after the signature of the
exchange and that it shall expire on June 30, 1959.
At the request of either Government, made prior
to May 30, 1959, conversations may be initiated
looking to agreement concerning subsequent regu-
lation of air transport between the two countries.

TEXT OF AGREEMENT

Mexico, D.F., Ma/rch 7, 1957

His Excellency

Sr. Lie. Louis Padilla Nervo,
Secretary of Foreign BelatioTis,
Mexico, D.F.

No. 942

Excellency : I have the honor to acknowledge
the receipt of Your Excellency's note No. 501404
of today's date, together with the attached Memo-
randum of Understanding and Annex, which read
in translation as follows:

Mb. Ambassador : I have the honor to advise Your Ex-
cellency that the Government of Mexico, in a desire to
conti-ibute to the improvement of air transport between
oui- two countries, is prepared to execute a provisional

arrangement regarding civil aviation with the Govern-
ment of the United States of America in the terms of
the Memorandum of Understanding and its Annex which
I attach to the present note.

If, as I understand is the case, the Government of the
United States of America is also willing to conclude
such an arrangement on this basis, the present note and
the note in reply from Your Excellency communicating
your Government's acceptance of the Memorandum of
Understanding and its Annex above-mentioned shall con-
stitute a provisional arrangement regarding civil avia-
tion between the two Governments.

I take this occasion to renew to Y'our Excellency the
assurances of my highest consideration.

MEMORANDUM OF UNDERSTANDING

1. The aeronautical authorities of the Government of
Mexico shall grant permits to airlines designated by the
Government of the United States of America to operate air
services on the air routes specified below, via intermediate
points, in both directions, and to make regular stops
at the points listed in this paragraph :

A. New York, Washington-Mexico City.

B. Chicago, Dallas, San .\ntonio-Mexico City, via inter-
mediate points in the United States.

C. Los Angeles-Mexico City, via intermediate points
in the United States.

D. New Orleans-Mexico City.

E. New Orleans-M6rida, and beyond, to Guatemala,
and beyond.

F. Miami-M^rida, and beyond, to Guatemala, and
beyond.

G. Houston, Brownsville-Tajnpico, Mexico City, Tapa-
cluila, and beyond, to Guatemala, and beyond.

The aeronautical authorities of the Government of the
United States of America shall grant permits to airlines
designated by the Government of Mexico to operate air
services on each one of the air routes specified below,
via intermediate points, in both directions, and to make
regular stops at the points listed in this paragraph :

A. Mexico City-Washington, New York.

B. Mexico City-Chicago, via intermediate points in
Mexico.

C. Mexico City-Los Angeles, via intermediate points in
Mexico.

D. Mexico City-New Orleans, via intermediate points
in Mexico.

E. Mexico City-Miami, and beyond, via intermediate
points in Mexico.

April 8, 1957

575

F. Mexico City-San Antonio, via intermediate points In
Mexico.

G. (Pending).

2. Both parties agree not to designate, for the present,
more than one airline for each route.

3. An airline designated by either country may, at its
discretion, omit stops on any of the routes specified on any
or all flights.

4. The aeronautical operations of the designated lines
shall be governed by the principles set forth in the
Annex to the present Memorandum of Understanding.

5. The present Provisional Arrangement shall enter
in force ninety days after the date of the exchange of
notes.

6. The arrangement shall terminate June 30, 1959.

7. Upon request of either Government, prior to May
30, 1959, talks may be initiated to reach an agreement
concerning a system to regulate air transport subsequent
to June 30, 1959, between the two countries.

Annex

(A) The term "aeronautical authorities" means In the
ease of the United States of America, the Civil Aero-
nautics Board or any person or agency authorized to
perform the functions exercised at the jjresent time by the
Civil Aeronautics Board and, in the case of the United
Mexican States, the Ministry of Communications and
Public Works or any person or agency authorized to
perform the functions exercised at present by the said
Ministry of Communications and Public Works.

(B) The term "designated airline" means an airline
that one party has notified to the other party, in writ-
ing, to be the airline which will operate a specific route
or routes listed in the Memorandum of Understanding.

(C) The term "territory" in relation to a State means
the land areas and territorial waters adjacent thereto
under the sovereignty, suzerainty, protection, mandate
or trusteeship of that State.

(D) The term "air service" means scheduled air
service performed by aircraft for the public transport
of passengers, mail or cargo.

(B) The term "international air service" means an air
service which flies over the territory of more than one
State.

(P) The term "stop for non-traflic purposes" means a
landing for any purpose other than taking on or discharg-
ing passengers, cargo or mail.

II

Each party grants to the other party rights neces-
sary for the conduct of air services by the designated
airlines, as follows: the rights of transit, of stops for
non-traflic puriioses, and of commercial entry and de-
parture for international traflic in passengers, cargo, and
mail at the points in its territory named on each of the
routes specified in the Memorandum of Understanding.
The fact that such rights may not be exercised im-
mediately .shall not preclude the subsequent inauguration
of air services by the airlines of the party to whom such

rights are granted over the routes specified in the Mem-
orandum of Understanding.

Ill

Air service on a specified route may be inaugurated
immediately or at a later date at the option of the party
to whom the rights are granted by an airline or airlines
of such party at any time after that party has desig-
nated such airline or airlines for the route and the other
party has given the appropriate operating permission.
Such other party shall, subject to Section IV, be bound
to give this permission provided that the designated air-
line or airlines may be required to qualify before the
competent aeronautical authorities of that party, under
the laws and regulations normally applied by these au-
thorities, before being permitted to engage in the opera-
tions contemplated by the Memorandum of Understand-
ing and this Annex.

IV

Each party reseiTes the right to withhold or revoke
the operating permission provided for in Section III of
this Annex from an airline designated by the other party
in the event that it is not satisfied that substantial own-
ership and effective control of such airline are vested
in nationals of the other party or in case of failure by
such airline to comply with the laws and regulations
referred to in Section V of the present Annex, or in case
of the failure of the airline or the Government desig-
nating it to fulfill the conditions under which the rights
are granted in accordance with the Provisional Arrange-
ment.

V

(A) The laws and regulations of one party relating to
the admission to or departure from its territory of air-
craft engaged in international air navigation, or to the
operation and navigation of such aircraft while within
its territory, shall be applied to the aircraft of the air-
line or airlines designated by the other party and shall
be complied with by such aircraft upon entering or de-
parting from, and while within the territory of the first
party.

(B) The laws and regulations of one party relating
to the admission to or departure from its territory of
passengers, crew, or cargo of aircraft, such as regulations
relating to entry, clearance, immigration, passports, cus-
toms, and quarantine shall be complied with by or on
behalf of such passengers, crew or cargo of the other
party upon entrance into or departure from, and while
within the territory of the first party.

VI

Certificates of airworthiness, certificates of competency
and licenses issued or rendered valid by one party, and
still in force, shall be recognized as valid by the other
party for the purpose of operating the routes and serv-
ices provided for in the Memorandum of Understanding
and in the present Annex, provided that the requirements
under which such certificates or licenses were issued or
rendered valid are equal to or above the minimum stand-
ards which may be established pursuant to the Conven-
tion on International Civil Aviation. Each party reserves

576

Departmenf of State Bulletin

the right, however, to refuse to recognize, for the pur-
pose of flight above its own territory, certiflcates of
competency and licenses granted to its own nationals by
anotlier State.

VII

In order to prevent discriminatory practices and to
assure equality of treatment, both parties agree further
to observe the following principles :

(a) Kach of the parties may impose or permit to be
imposed just and reasonable charges for the use of pub-
lic airports and other facilities under its control. Each
of the parties agrees, however, that these charaes shall
not be higher than would be paid for the use of such air-
ports and facilities by its national aircraft engaged in
similar international services.

(b) Fuel, lubricating oils, consumable technical sup-
plies, spare parts, regular equipment, and stores intro-
duced into the territory of one party by the other party
or its nationals, and intended solely for use by aircraft of
such party shall he exempt on a basis of reciprocity from
customs duties, inspection fees and other national duties
or charges.

(c) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores re-
tained on board aircraft of the airlines of one party
authorized to operate the routes and services provided for
in the Memorandum of Understanding and in this Annex
shall, upon arriving in or leaving the territory of the
other part.v, be exempt on a basis of reciprocity from
customs duties, inspection fees and other national duties
or charges, even though such supplies be used or con-
sumed by such aircraft on flights in that territory.

(d) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores taken
on board aircraft of the airlines of one party in the terri-
tory of the other and used in international services shall
be exempt on a basis of reciprocity from customs duties,
excise taxes, inspection fees and other national duties or
charges.

VIII

There shall be a fair and equal opportunity for the
airlines of each party to operate on the routes listed in
the Memorandum of Understanding.

IX

In the operation by the airlines of either party of the
trunk services described in the Memorandum of Under-
standing the interest of the airlines of the other party
shall be taken into consideration so as not to affect un-
duly the services which the latter provide on all or part of
the same routes.

X

The services made available to the public by the air-
lines operating under the Provisional Arrangement shall
bear a close relationship to the requirements of the public
for such services.

It is understood that services provided by a designated
airline under the Memorandum of Understanding and the
present Annex shall retain as their primary objective the
provision of capacity adequate to the traffic demands be-

tween the country of which such airline is a national
and the countries of ultimate destination of the traflSc.
The right to embark or disembark on such services inter-
national traffic destined for and coming from third coun-
tries at a point or points on the routes specified in the
Memorandum of Understanding shall be applied in ac-
cordance with the general principles of orderly develop-
ment to which both parties suliscribe and shall be subject
to the general principle that capacity should be related:

(a) to traffic requirements between the country of
origin and the countries of ultimate destination of the
traffic ;

(b) to the requirements of through airline operation;
and,

(c) to the traffic requirements of the area through
which the airline passes after taking account of local and
regional services.

Both parties agree to recognize that the fifth freedom
traffic is complementary to the traffic requirements on
the routes between the territories of the parties, and at
the same time is subsidiary in relation to the traffic re-
quirements of the third and fourth freedoms between the
territory of the other party and a country on the route.

In this connection both parties recognize that the de-
velopment of local and regional services is a legitimate
right of each of their countries. Tliey agree therefore to
consult periodically on the manner in which the standards
mentioned in this section are being complied with by their
respective airlines, in order to assure tliat their respec-
tive interests in the local and regional services as well as
through .services are not being prejudiced.

Every change of gauge justifiable for reasons of econ-
omy of operation, shall he permitted at any stop on the
designated routes. Nevertheless, no change of gauge may
be made in the territory of one or the other party when
it modifies the characteristics of the operation of a through
airline service or if it is incompatible with the principles
enunciated in the present Annex.

"When one of the parties after a period of observation of
not less than ninety days considers that an increase in
capacity or frequency offered by an airline of the other
party is unjustified or prejudicial to the services of its
respective airline it shall notify the other party of its
objection to the end that consultation be initiated between
the appropriate aeronautical authorities and decision on
the objection be made by mutual agreement within a
period which may not be more than ninety days beginning
on the date of such notification. For this purpose the
operating companies shall supply all traffic statistics that
may be necessary and required of them.

XI

Rates to be charged on the routes provided for in the
Memorandum of Understanding shall be reasonable, due
regard being paid to all relevant factors, such as cost of
operation, reasonable profit, and the rates charged by any
other carriers, as well as the characteristics of each serv-
ice, and shall be determined in accordance with the follow-
ing paragraphs :

(A) The rates to be charged by the airlines of either
party between points in the territory of the United States

April 8, 1957

577

of America and points in the territory of tlie United
Mexican States referred to in the Memorandum of Under-
standing shall, consistent with the provisions of the pres-
ent Annex, be subject to the approval of the aeronautical
authorities of the parties, who shall act in accordance
with their oblisations under the Provisional Arrange-
ment, within the limits of their legal powers.

(B) Any rate proposed by an airline of either party
shall be filed with the aeronautical authorities of both
parties at least thirty (30) days before the proposed date
of introduction; provided that this period of thirty (30)
days may be reduced in particular cases if so agreed by
the aeronautical authorities of both parties.

(C) During any period for which the Civil Aero-
nautics Board of the United States of America has
approved the traffic conference procedures of the Inter-
national Air Transport Association (hereinafter called
lATA), any rate agreements concluded through these pro-
cedures and involving United States airlines will be
subject to approval of the Board. Likewise, agreements
concluded through this machinery may also be required
to be subject to the approval of the aeronautical author-
ities of the United Mexican States pursuant to the prin-
ciples enunciated in paragraph (A) above.

(D) The procedure described in paragraphs (E), (F)
and (G) of this Section shall apply:

1. If, during the period of the approval by both parties
of the lATA traffic conference procedure, either, any
specific rate agreement is not approved within a reason-
able time by either party, or, a conference of lATA is
unable to agree on a rate,

or

2. At any time no lATA procedure is applicable, or

3. If either party at any time withdraws or fails to
renew its approval of that part of the lATA traffic con-
ference procedure relevant to this Section.

(E) In the event that power is conferred by law upon
the aeronautical authorities of the United States of Amer-
ica to fix fair and economic rates for the transport of
persons and property by air on international services and
to suspend proposed rates in a manner comparable to that
in which the Civil Aeronautics Board at present is em-
powered to act with respect to such rates for the transport
of persons and property by air within the United States
of America, each of the parties shall thereafter exercise
its authority in such manner as to prevent any rate or
rates proposed by one of its airlines for services from the
territory of one party to a point or points in the territory
of the other party from becoming effective, if in the
judgment of the aeronautical authorities of the party
whose airline or airlines is or are proposing such rate, that
rate is unfair or uneconomic. If one of the parties on
receipt of the notification referred to in paragraph (B)
above is dissatisfied with the rate proposed by the airline
or airlines of tlie other party, it shall so notify the other
party prior to the expiry of the first fifteen (15) of the
thirty (30) days referred to, and the parties shall endeavor
to reach agreement on the appropriate rate.

In the event that such agreement is reached, each party
will exercise its best efforts to put such rate into effect
as regards its airline or airlines.

If agreement has not been reached at the end of the
thirty (30) day period referred to in paragraph (B)
above, the proposed rate may, unless the aeronautical
authorities of the country of the air carrier concerned see
fit to suspend its application, go into effect provisionally
pending the settlement of any dispute in accordance with
the procedure outlined in paragraph (G) below.

(P) Prior to the time when such power may be con-
ferred upon the aeronautical authorities of the United
States of America, if one of the parties is dissatisfied
with any rate proposed by the airline or airlines of either
party for services from the territory of one party to a
point or points in the territory of the other party, it shall
so notify the other party prior to the expiry of the first
fifteen (15) of the thirty (30) day period referred to in
paragraph (B) above, and the parties shall endeavor to
reach agreement on the appropriate rate.

In the event that such agreement is reached, each party
will use its best efforts to cause such agreed rate to be put
into effect by its airline or airlines.

If no agreement can be reached prior to the expiry of
such thirty (30) days, the party raising the objection to
the rate may take such steps as it may consider necessary
to prevent the inauguration or continuation of the service
in question at the rate complained of.

(G) When in any case under paragraphs (E) or (P)
of this Section the aeronautical authorities of the two
parties cannot agree within a reasonable time upon the
appropriate rate after consultation initiated by the com-
plaint of one party concerning a proposed rate or an
existing rate of the airline or airlines of the other party,
upon the request of either, the terms of Section XIII of
this Annex shall apply.

XII

Consultation between the competent authorities of both
parties may be requested at any time by either party for
the purpose of discussing the interpretation, application,
or amendment of the Provisional Arrangement or Route
Schedule (Point 1 of the Memorandum of Understanding).
Such consultation shall begin within a period of sixty
(60) days from the date of the receipt of the request by
the Department of State of the United States of America
or the Ministry of Foreign Relations of the United Mexi-
can States as the case may be. Should agreement be
reached on amendment of the Provisional Arrangement
or Schedule of Routes, such amendment will come into
effect upon confirmation by a further exchange of diplo-
matic notes.

XIII

Except as otherwise provided, any dispute between the
parties relative to the interpretation or application of the
Provisional Arrangement which cannot be settled through
consultation shall be submitted for an advisory report
to a tribunal of three arbitrators, one to be named by
each party, and the third to be agreed upon by the two
arbitrators so chosen, provided that such a third arbi-
trator shall not be a national of either party. Each of the
parties shall designate an arbitrator within two months
of the date of delivery by either party to tlie other party
of a diplomatic note requesting arbitration of a dispute;
and the third arbitrator shall lie agreed upon within one
month after such period of two months.

578

Department of Sfafe Bulletin

If t'ither of the parties fails to designate its own arbi-
trator within two months, or if the third arbitrator is
not agreed uixm within the time limit indicated, either
party may request the President of the International
Court of Justice to make the necessary appointment or
appointments by choosing the arbitrator or arbitrators.

The parties will use their best efforts under the powers
available to them to put into effect the opinion expressed
in any such advisory report. A moiety of the expenses
of the arbitral tribunal shall be borne by each party.

XIV

The Provisional Arrangement, all amendments thereto,
and contracts connected therewith shall be registered
with the International Civil Aviation Organization.

XV

If a general multilateral air transport Convention ac-
cepted by both parties enters into force, the Provisional
Arrangement shall be amended so as to conform with the
provisions of such Convention.

XVI

Either of the two parties may at any time notify the
other party of its intention to terminate the Provisional
Arrangement. Such notice shall be sent simultaneously
to the International Civil Aviation Organization. In case
such notification should be given the arrangement would
terminate six months after the date on which the notice
of termination may have been received, unless the com-
munication under reference is annulled before the end
of this period by agreement between both parties. Should
the other party not acknowledge receipt it shall be con-
sidered that the notification was received by it 14 days
subsequent to the date on which it is received by the In-
ternational Civil Aviation Organization.

XVII

Upon entry into effect of the Provisional Arrangement
the aeronautical authorities of the two parties must com-
municate to each other as soon as possible the informa-
tion relating to authorizations given to the airline or air-
lines designated by them to operate the routes mentioned
in the Memorandum of Understanding.

XVIII

The aeronautical authorities of both parties shall re-
spectively advise each other eight days before the actual
placing in operation of their respective permits the fol-
lowing data : schedules, frequencies, tariffs and tyi)es of
aircraft normally utilized in their services. Any modifi-
cation of the data under reference shall similarly be
communicated.

In reply, I have the honor to advise Your Ex-
cellency that the Government of the United States
of America is prepared to conclude a provisional
arrangement on the basis proposed in Your Ex-
cellency's note, Memorandum of Understanding
and Annex under reference, and accept your pro-
posal to regard that note, the Memorandum of

Understanding and Annex and the present reply
as constituting a provisional arrangement regard-
ing civil aviation between our two Governments.
Please accept, Excellency, the renewed assur-
ances of my highest consideration.

Francis White

U.S. and Netherlands Resume
Air Transport Negotiations

Following is a Department announcernent con-
cerning the reswmption on March 19 of negotia-
tions on the U.S. -Netherlands air transport agree-
ment, together with an exchange of letters betimen
President Eisenhoioer and Dr. Willem Drees,
Prime Minister of the Netherlands.

DEPARTMENT ANNOUNCEMENT

Press release 163 dated March 19

Delegations of the Governments of the United
States and the Kingdom of the Netherlands re-
sumed negotiations on March 19 for the conclu-
sion of a bilateral air transport agreement. The
negotiations were suspended last May.

The chairman of the Netherlands delegation is
E. H. van der Beugel, State Secretary for Foreign
Affairs. The vice chairman is H. J. Spanjaard,
director of the Department of Civil Aviation,
Ministry of Transport and Waterways. The other
members of the delegation are Baron S. G. M. van
Voorst tot Voorst, Envoy Extraordinary and
Minister Plenipotentiary at the Netherlands Em-
bassy in Washington ; J. C. Nieuwenhuijsen, Min-
istry of Foreign Affairs ; E. D. Baiz, representa-
tive of the Government of the Netherlands An-
tilles; F. J. Barend, representative of the Govern-
ment of Surinam; L. H. Slotemaker, managing
director of KLM, Royal Dutch Airlines; and
S. C. van Nispen, commercial secretary at the
Netlierlands Embassy in Washington.

The U.S. delegation is headed by Thorsten V.
Kalijarvi, Assistant Secretary of State for Eco-
nomic Affairs ; vice chairman is G. Joseph Minetti,
member. Civil Aeronautics Board. Other mem-
bers of the delegation are H. Alberta Colclaser,
Hendrik van Oss, and John P. Walsh, Department
of State; Raymond Sawyer and Joseph C. Wat-
son, Civil Aeronautics Board. Bradley D. Nash,
Deputy Under Secretary of Commerce for Trans-

AprW 8, 1957

579

portation, will be an adviser to the U.S. delega-
tion, and Paul Reiber, representing the Air Trans-
port Association of America, will attend as an
observer.

EXCHANGE OF LETTERS

Press release 16G dated March 21

The Prime Minister's Letter

The Hague, 28th February 1957

Dear Mr. President: Your many responsi-
bilities in American and world affairs will un-
doubtedly make it impossible for you to follow
closely all questions pertaining to the bilateral
relationship of the United States of America and
the Netherlands, however united our coimtries are
in the cause of the free world. I have therefore
hesitated before writing you this personal letter
to ask yoiu" special attention for the negotiations
on an air transport agreement between the Nether-
lands and the United States, which are to begin
in Washington on March 19th next.

These negotiations probably are of minor im-
portance as compared to the many problems which
the world at the present moment is facing, but
Her Majesty's Government, the Parliament and
the people of the Netherlands consider their out-
come to be vital to the economy of my country.

The special geographic and demographic situa-
tion of my country, its limited natural resources,
require that the Netherlands maintain its historic
position as a world carrier, if it is to pull its weight
as a sound member of the Western Alliance.

It is for this reason that I am taking the ex-
ceptional step of writing you to draw your atten-
tion to these negotiations, which naturally will be
followed very closely by the Government and the
people of the Netherlands.

The traditional friendship between your great
nation and the Netherlands encourages me to feel

confident that you may see your way to giving this
matter some personal thought. I am convinced
that tliis would be extremely helpful in bringing
about a favorable outcome of these discussions.

Wliile thanking you in advance for anything
which you may be able to do in this respect, I avail
myself of this opportunity to send you the as-
surances of my highest esteem and of my feelings
of sincere friendship.

W. Drees

The President's Letter

March 18, 1957
Dear Mr. Prime Minister: I was very pleased
to receive from the Ambassador of The Nether-
lands your letter of February 28 concerning the
significance which the Government and people of
The Netherlands attach to the forthcoming civil
air negotiations between our two countries. I am
glad that you did not hesitate to write me directly
about a matter which affects so vitally the relations
between the United States and The Netherlands.
Both of our countries, which have joined with
other like-minded nations to achieve certain mu-
tual objectives in Nato, have as a common purpose
the healthy expansion of our free economies, so
necessary for the maintenance of the Western
Alliance.

I place, as do the people of the United States,
a very high value on maintaining and strengthen-
ing our close relations with The Netherlands.
Such a relationship not only permits, but re-
quires the frank exchange of views on problems
of mutual concern. I have instructed the United
States Delegation for the forthcoming civil air
negotiations to give the most serious consideration
to the factors described in your letter.
Sincerely yours,

DwiGHT D. Eisenhower

580

Departmenf of State Bulletin

Notice of Intention To Enter Into Limited Trade Agreement Negotiations
With the United Kingdom and Belgium^

The Interdepartmental Committee on Trade
Agreements on March IS issued notice of the in-
tention of the U.S. Government, under the au-
thority of the Trade Agreements Act as amended
and extended, to enter into limited trade agree-
ment negotiations with certain contracting par-
ties to tlie General Agreement on Tariffs and
Trade.

These negotiations are being held in connection
with requests for compensatory tariff concessions
by the United Kingdom and Belgium on the basis
of the increase last year of the U.S. rate of duty
on certain linen toweling. The increase from 10
percent to 40 percent ad valorem in the rate of
duty on linen toweling became effective on July
26, 1956.^

The action to increase the duty was taken under
the escape-clause provision of the General Agree-
ment on Tariffs and Trade after a finding by the
U.S. Tariff Commission that domestic industry was
being seriously injured as a result of increased im-
ports caused at least in part by a tariff conces-
sion which was initially negotiated with the United
Kingdom in the agreement.

In accordance with the escape-clause provision,
the United States has consulted with the countries
having a substantial interest as exporters of linen
toweling. The United Kingdom and Belgium,
both of which have exported substantial quantities
of linen toweling to the United States, have re-
quested compensation for the U.S. action, which
thej' consider an impairment of the concession.
Japan, a small supplier of toweling, has indicated
that it would expect to benefit from compensation
granted to the other supplying countries. Ordi-

' This material is also available as Department of State
publication 6470 and may be obtained from the Division
of Public Services, Department of State, Washington 25,
D.C. See also 22 Fed. Reg. 1878.

' Bulletin of July 16, 1956, p. 115.

narily the country using some procedure imder the
general agreement to increase a duty which is the
subject of a concession grants compensatory con-
cessions to the countries adversely affected.
Sliould agreement on such compensatory conces-
sions not be reached provision is usually made for
the affected country to suspend equivalent
concessions.

Tariff concessions by the United States will be
considered within the limitation of authority
available to the President imder the Trade Agree-
ments Act as amended. The Trade Agreements
Extension Act of 1955 provides that rates may be
reduced 15 percent below the January 1, 1955,
rates by stages of 5 percent a 5'ear over a 3-year
period but that no stage or reduction may be made
effective after June 30, 1958. Consequently there
remains authority to reduce rates to as much as 10
percent below the January 1, 1955, rate, in two an-
nual stages of 5 percent each.

In accordance with past practice and the re-
quirements of trade agreements legislation, the
committee's notice sets in motion preparations for
the negotiations, including opportunity for pre-
sentation by interested persons of both written
and oral views on jDOSsible concessions which may
be granted and the determination of "peril points"
by the U.S. Tariff Commission on jiroducts on
which the United States will consider granting
concessions.

Included with the committee's notice is a list of
products, some of which might be offered as com-
pensatory concessions.

The Committee for Reciprocity Information
announces that its hearings to receive the views of
interested persons concerning the proposed negoti-
ations will open on April 24, 1957. Domestic pro-
ducers, importers, and other interested persons
are invited to present to the committee views and
all pertinent information about products on the

April 8, 1957

581

published list or any other aspect of the negotia-
tions. All views and information will be care-
fully considered in deciding whether or not a con-
cession should be offered by the United States.
Consideration will also be given to all relevant
information submitted to the Committee for
Reciprocity Information in connection with its
hearings in October 1955 and January 1956 in
preparation for the Geneva tariff negotiations.
Accordmgly, persons who presented information
and views at those hearings regarding products on
the attached list and who do not desire to modify
or supplement such material, need not — but may
if they wish — repeat their written or oral
submissions.

Applications for oral presentation of views and
information should be presented to the Committee
for Reciprocity Information not later than the
close of business April 17, 1957. Persons desiring
to be heard should also submit written briefs or
statements to the committee by April 17, 1957.
Only those persons will be heard who have pre-
sented written briefs or statements and have filed
applications to be heard by the dates indicated.
Communications are to be addressed to "Com-
mittee for Reciprocity Information, Tariff Com-
mission Building, Washington 25, D.C." Fur-
ther details concerning the submission of briefs
and applications to be heard are contained in the
committee's notice.

The membership of the Committee on Trade
Agreements and of the Committee for Reciprocity
Information is identical, consisting of representa-
tives of the Departments of State, Treasury, De-
fense, Agriculture, Commerce, Labor, and In-
terior, and the International Cooperation Admin-
istration, as well as a member of the U.S. Tariff
Commission. The Department of State member
is the chairman of the Committee on Trade Agree-
ments, while the Tariff Commission member is the
chairman of the Committee for Reciprocity
Information.

The U.S. Tariff Commission also announced on
March 18 that it will hold public hearings begin-
ning April 24, 1957, in connection with its "peril
point" investigation, as required by section 3(a)
of the Trade Agreements Extension Act of 1951,
on the extent to which U.S. concessions on listed
products may be made in tlie negotiations without
causing or threatening serious injury to a domestic
industry producing like or directly competitive

products. Copies of the notice may be obtained
from the Commission. Views and information
received by the Tariff Commission on its hearings
referred to above will be made available to the
Committer for Reciprocity Information for con-
sideration by the Interdepartmental Committee on
Trade Agreements. Persons who appear before
the Tariff" Commission need not — but may if they
wish — also appear before the Committee for Reci-
procity Information, if they apply in accordance
with the procedures of that committee as outlined
above.

INTERDEPARTMENTAL COMMITTEE ON TRADE
AGREEMENTS

Trade agreement negotiations with governments which
are contracting parties to the General Agreement on
Tariffs and Trade regarding compensation for escape
clause action.

Pursuant to Section 4 of the Ti-ade Agreements Act,
approved June 12, 1934, as amended (48 Stat. 945, ch. 474;
65 Stat. 7?>, ch. 141) and to paragraph 4 of Executive
Order 10082 of October 5, 1949 (3 CFR, 1949 Supp., p. 126) ,
and In view of certain "escape clause" action with respect
to toweling of flax, hemp, or ramie taken by the President
on June 25, 1956 (Proclamation 3143, 3 CFR, 1956 Supp.,
p. 33) under the authority of section 350 of the Tariff
Act of 1930, as amended (48 Stat. 943, ch. 474) and Section
7(c) of the Trade Agreements Extension Act of 1051 (65
Stat. 74, ch. 141), notice is hereby given by the Interde-
partmental Committee on Trade Agreements of Intention
to enter into trade agreement negotiations under Article
XIX of the General Agi-eement regarding compensation to
contracting parties to the Agreement that have a sub-
stantial Interest as exporters for such escape clause action.
Since the purpose of the negotiations is the granting of
compensatory concessions by the United States, It Is not
anticipated that they will result in any concessions by
other countries for the benefit of United States exports.
The results of these negotiations would be embodied in
Schedule XX to the General Agreement.

There is annexed hereto a list of articles imported into
the United States to be considered for possible modification
of duties and other Import restrictions, or specific con-
tinuance of existing customs or excise treatment In the
negotiations of which notice is given above.

The articles proposed for consideration in the negotia-
tions are identified in the annexed list by specifyin.g the
numbers of the pjiragraphs in tariff sclicdules of Title I
of the Tariff Act of 1930, as amended, in which they are
provided for together with the language used in such
tariff paragraphs to provide for such articles, except that
where necessary the statutory language has been modified
by the omission of words or the addition of new language
In order to narrow the scope of the original language.

No article will he considered in the negotiations for

582

Department of State Bulletin

possible modification of duties or other import restrictions,
imposition of additional import restrictions, or specific
continuance of existing customs or excise treatment unless
it is included, specifically or by reference, in the annexed
list or unless it is subsequently included in a supjile-
mentary public list. Only duties on the articles listed
Imposed under the paragraphs of the Tariff Act of 1930
specified with regard to such articles will be considered
for a possible decrease, but additional or separate ordinary
duties or import taxes on such articles imposed under any
other provisions of law may be bound against increase as
an assurance that the concession under the listed para-
graph will not be nullified. In the event that an article
which as of March 1, 1957 was regarded as classifiable
under a description included in the list is excluded there-
from by judicial decision or otherwise prior to the con-
clusion of the trade agreement negotiations, the list will
nevertheless be considered as including such article.

Pursuant to Section 4 of the Trade Agreements Act, as
amended, and paragraph 5 of Executive Order 10082 of
October 5, 1949, information and views as to any aspect
of the proposals announced in this notice may be sub-
mitted to the Committee for Reciprocity Information in
accordance with the announcement of this date issued by
that Committee. Any matters appropriate to be con-
sidered in connection with the negotiations proposed above
may be presented.

Public hearings in connection with "peril point" investi-
gation of the United States Tariff Commission in connec-
tion with the articles included in the annexed list pursuant
to Section 3 of the Trade Agreements Extension Act of
1951, as amended, are the subject of an announcement of
this date issued by that Commission.

By direction of the Interdepartmental Committee on
Trade Agreements this 18th day of March 1957.

Carl D. Corse
Chairman

Interdepartmental Committee
on Trade Agreements

List of Articles Imported Into the United States
Proposed for Consideration in Trade Agreement
Negotiations

Par.

Par.

52

93
218(a)

Tariff Act of 1930, Title I— Dutiable List

All chemical elements, all chemical salts and
compounds, and all combinations and mix-
tures of any of the foregoing, all the foregoing
obtained naturally or artificially and not
specially provided for:
Sodium alginate.

Sperm oil, refined or otherwise processed;
spermaceti wax.

Zinc cWoride; zinc sulphate.

Biological, chemical, metallurgical, pharma-
ceutical, and surgical articles and utensils
of all kinds, including all scientific articles
and utensils, whether used for experimental
purposes in hospitals, laboratories, schools or
universities, colleges, or otherwise, all the
foregoing, finished or unfinished, wholly or in
chief value of fused quartz or fused silica.

372

90G

907

921

1009(c)

1010

1410

Tariff Act of 1930, Title I— Dutiable List

Textile machinery, finished or unfinished, not
specially provided for:

Machinery for manufacturing or processing
vegetable fibers other than cotton or
jute prior to the making of fabrics or
crocheted, knit, woven, or felt articles
not made from fabrics (except beaming,
slashing, warping, or winding machinery
or combinations thereof, and except
bleaching, printing, dyeing, or finishing
machinery).
Cloth, in chief value of cotton, containing wool.
[Note: Paragraph 1122, Tariff' Act of 1930,
limits the wool content of cloth classifiable
under paragraph 90G to less than 17 per-
cent in weight.)
Tracing cloth; waterproof cloth, wholly or in
chief value of cotton or other vegetable fiber,
but not in part of India rubber.
All other floor coverings, including carpets,
carpeting, mats, and rugs, wholly or in chief
value of cotton:

Imitation oriental rugs.
Woven fabrics, in the piece or otherwise, wholly
or in chief value of vegetable fiber, except
cotton, filled, coated, or otherwise prepared
for use as artists' canvas.
Woven fabrics, not including articles finished or
unfinished, of flax, hemp, ramie, or other
vegetable fiber, except cotton or jute, or of
which these substances or any of them is the
component material of chief value, not
specially provided for (except toweling, i. e.,
fabrics chiefly used for making towels, of
flax, hemp, or ramie, or of which these sub-
stances or any of them is the component
material of chief value).
Unbound books of all kinds, bound books of all
kinds except those bound wholly or in part in
leather, sheets or printed pages of books bound
wholly or in part in leather, all the foregoing
not specially provided for, if other than of
bona fide foreign authorship (not including
diaries, music in books, pamphlets, prayer
books, sheets or printed pages of prayer books
bound wholly or in part in leather, or tourist
literature containing geograpliic, historical,
hotel, timetable, travel, or similar informa-
tion, chiefly with respect to places or travel
facilities outside the continental United
States) .

COMMITTEE FOR RECIPROCITY INFORMATION

Trade Agreement Negotiations with Governments which
are contracting parties to the General Agreement on

April 8, 1957

583

Tariffs and Trade regarding compensation for escape
clause action.

Submission of information to tlie Committee for Reci-
procity Information.

Closing date for applications to appear at hearing April
17, 1957.

Closing date for submission of briefs April 17, 19S7.

Public hearings open April 24, 1957.

The Interdepartmental Committee on Trade Agreements
has issued on this day a notice of intention to participate
in trade agreement negotiations under Article XIX of
the General Agreement on Tariffs and Trade regarding
compensation to contracting parties to the Agreement that
have a substantial interest as exporters for the escape
clause action with respect to toweling of flax, hemp, or
ramie taken by the President on June 25, 1956. Annexed
to the notice of the Interdepartmental Committee on
Trade Agreements is a list of articles imported into the
United States to be considered for possible concessions in
the negotiations. Since the purpose of the negotiations
is the granting of compensatory concessions by the United
States, it is not anticipated that they will result in any
concessions by other countries for the benefit of United
States exports.

The Committee for Reciprocity Information hereby gives
notice that all applications for oral presentation of views
in regard to the proposed renegotiations shall be submitted
to the Committee for Reciprocity Information not later
than April 17, 1957. The application must indicate the
product or products on which the individual or groups
desire to be heard and an estimate of the time required
for oral presentation. Written statements shall be sub-
mitted not later than April 17, 1057. Such communica-
tions shall be addressed to "Committee for Reciprocity
Information, Tariff Commission Building, Washington 25,
D. C." Fifteen copies of written statements, either typed,
printed, or duplicated shall be submitted, of which one
copy shall be sworn to.

Written statements submitted to the Committee, except
information and business data proffered in confidence,
shall be open to inspection by interested persons. In-
formation and business data proffered in confidence .shall
be submitted on separate pages clearly marked For Of-
ficial Use Only of Committee for Reciprocity Information.

Public hearings will be held before the Committee for
Reciprocity Information, at which oral statements will be
heard, beginning at 2:00 p. m. on April 24, 1957 in the
hearing room in the Tariff Commission Building, Eighth
and E Streets N. W., Washington, D. C. Witnesses who
make application to be heard will be advised regarding
the time and place of their individual appearances. Ap-
pearances at hearings before the Committee may be made
only by or on liehalf of those persons who have filed written
statements and who have within the time prescribed made
written application for oral presentation of views. State-
ments made at the public hearings shall be under oath.

Persons may present their views regarding any matter
appropriate to l>e considered in coimection with the pro-
posed negotiations, although, as indicated above, it is not

anticipated that they will result in any concessions by
other countries for the benefit of United States exports.
Copies of the list attached to the notice of intention to
negotiate may be obtained from the Committee for Reci-
procity Information at the address designated above and
may be inspected at the field oflBces of the Department of
Commerce.

The United States Tariff Commission has today an-
nounced public hearings on the import items appearing
in the list annexed to the notice of intention to negotiate
to run concurrently with the hearings of the Committee
for Reciprocity Information. Oral testimony and written
information submitted to the Tariff Commission will be
made available to and will be considered by the Inter-
departmental Committee on Trade Agreements. Con.se-
quently, those whose interests relate only to import prod-
ucts included in the foregoing list, and who appear before
the Tariff Commission, need not, but may if they wish,
appear also before the Committee for Reciprocity In-
formation.

By direction of the Committee for Reciprocity Informa-
tion this 18th day of March 1957.

Edward Yaedlet

Secretary,

Committee for Reciprocity Information

President Asks Study of Tariff Quota
on Alsilte Clover Seed

White House press release dated March 14

The President on March 14 requested the Tariff
Commission to determine whether and to what ex-
tent the present tariff quota on alsike clover seed
will remain necessary after June 30, 1957.

In an escape-clause proceeding under section 7
of the Trade Agreements Extension Act, the Pres-
ident adopted on June 30, 1954, a Tariff Commis-
sion recommendation for a tariff quota providing
a duty of 2 cents per pound up to 1,500,000 pounds
and 6 cents per pound for imports in excess of tliat
amount.^ The tariff quota was established for 1
year. At the President's request the Commission
submitted a supplemental report, and on June 29,
1955, the President liberalized the tariff quota and
extended it for 2 j-ears.^ The present tariff is 6
cents per poimd on imjjorts exceeding 2,500,000
pounds and 2 cents per pound iq> to that amount.
It expires on June 30, 1957.

• Bulletin of .\ug. 2, 1954, p. 167.
" /6«d., July 18, 1955. p. IIG.

584

Department of State Bulletin

President Decides Against Study
of Tariff on Hatters' Fur

White Ilouse press release dated March 14

The President on March 14 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 suf-
ficient reason at this time to reopen the escape-
clause action which resulted in an increase of the
duty on imports of hatters' fur. The President's
decision means that the increased rate of duty,
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 pursu-
ant to Executive Order 10401, wliich requires
periodic review of actions taken under the escape
clause. It was transmitted to the President on
February 4, 1957.

The tariff on hatters' fur was reduced as the re-
sult 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 present
rate of 47^ cents per pomid, but not less than 15
percent nor more than 35 percent ad valorem.

The Tariff' Commission's report constitutes its
fourth periodic review of the escape-clause action
taken on this product.^

President Orders Investigation
of Effects of Tung Oil imports

White House press release dated March 22

The President has requested the U.S. Tariff
Commission to make an inmiediate investigation of
the effects of imports of tung oil on the domestic
price-support program for tung nuts and tung oil
and on the amount of products processed in the
United States from tmig nuts or tung oil. The
President's action was taken in response to a rec-
ommendation from the Secretary of Agriculture.

The Commission's investigation will be made pur-
suant to section 22 of the Agricultural Adjustment
Act, as amended.

President's Letter to Chairman of Tariff Commission

Dkak Mk. Chairman: I have been advised by
the Secretary of Agriculture that there is reason
to believe that tung oil is being and is practically
certain to continue to be imported into the United
States imder such conditions and in such quantities
as to render or tend to render ineffective or to ma-
terially interfere with the price support program
for tung nuts and tung oil undertaken by the De-
partment of Agriculture, pursuant to Section 201
of the Agricultural Adjustment Act of 1949, as
amended, or to reduce substantially the amount
of products processed in the United States from
domestic tung nuts and tung oil. A copy of the
Secretai-y's letter is enclosed.^

The Tariff Commission is requested to make an
immediate investigation under Section 22 of the
Agricultural Adjustment Act, as amended, to de-
termine if there is a need for restrictions on tung
oil imports. The Conmiission's findings should
be completed as promptly as practicable.
Sincerely,

DwiGHT D. Eisenhower

INTERNATIONAL ORGANIZATIONS
AND CONFERENCES

^ Bulletin of Jan. 21, 1952, p. 96.

- Copies of the report may be obtained from the U.S.
Tariff Commission, Washington 25, D.C.

U.N. Relief and Worlds Agency
for Palestine Refugees

Following are the texts of two statements made
in the Special Political Committee hy Mrs. Oswald
B. Lord, U.S. Representative to the General As-
se7nbly, together with a U.S. -sponsored 7'esolu-
tion adopted in plenary session on February 28.

STATEMENT OF FEBRUARY 18

U.S. delegation press release 2620

I am very much impressed with the compre-
hensive reports of the Director of the United

' Not printed.

AptU 8, 1957

585

Nations Relief and Works Agency.^ After hear-
ing his own excellent statement of last week, I wish
first of all to pay tribute to Mr. [Henry E.] La-
bouisse and to the many faithful members of his
agency. They have really done a most competent
job under stringent limitations and unusually dif-
ficult circumstances in taking care of the welfare
of the Arab refugees.

My Government has the widest sympathy and
understanding for the plight of these refugees. I
am personally concerned, for, Mr. Chairman, I
have seen refugees all over the world — in Ger-
many, Pakistan, India, Viet-Nam, Formosa — but
the refugee camps I visited in the Middle East —
Lebanon and Jordan are the most depressing be-
cause of the fact that these refugees have been
there so long and seem to have so little to hope for.

This in itself is depressing enough, but it is
even more depressing and unfortunate that, al-
though we have considered their plight here year
after year, the situation is not improving. Not
only is it not improving — it is not being solved.
"VAHiy ? To my Government and to me there are
three major elements that seem to stand out, and I
want to elaborate on all three — but to sum them
up:

First, a decision was made over 8 years ago that
refugees would have the right to decide whether
they should be repatriated or whether they should
be compensated. Second, let's face the fact there
has been some deterioration of relations between
the agency and some of the host governments.
Third, and most important, a good deal of lack of
progress is due to the question of contributions.

Let's take the first point, that the refugees con-
tinue to live in the faith of the promise made to
them 8 years ago that they will be repatriated to
Israel or compensated. This has not been put into
effect. The United States Government believes
that with the minimvmi of good faith and willful
understanding of particular and emotional prob-
lems involved we should find a way to settle this
problem.

Let's take a look at the second problem — the
deterioration of relations between the agency and
some of the host governments. I don't have to
remind the delegates of some of the unjustified
instances of noncooperation on the part of some
of the host governments that Mr. Labouisee has
cited in his report. This type of noncooperation

■ IJ.N. docs. A/3212 and Add. 1.
586

between a host government and the Director and
his responsible officials, fellow delegates, is incon-
sistent with the obligations as outlined in articles
104 and 105 of the charter.

This is really a matter of concern because, if any
United Nations agency finds that host governments
do not respect their charter obligations, the Direc-
tor of that particular agency would have the right
to suspend, curtail, or terminate its activities. I
am sure that all would agree with the United
States Government that, whether it is with the
United Nations Eelief and Works Agency or any
other agency, the Director, if unable to carry out
his assigned functions under the protection of the
resolution which governs his activities and under
the two articles of the charter, could well terminate
his activities.

However, I am sure you would all agree with the
United States delegation that host governments
are entitled to protect and exercise their sovereign
rights within their territories, and very possibly
by exercising such sovereign rights honest differ-
ences can arise.

We are most desirous to minimize the chances of
such a conflict, and we want to see each host gov-
ernment given a regard for its sovereignty — which
any free nation is entitled to exercise.

Together, however, with this legitimate desire
of the host governments to exercise fully their
sovereign rights, we must consider the fact that
the mandate of the United Nations Eelief and
Works Agency has a little more than 3 years to
run. My Government believes that this body
should now commence assisting the agency and
the governments as best it can in preparing against
the eventual termination of the United Nations
Eelief and Works Agency's activities in orderly
planning and in fairness to the host governments
and the welfare of the refugees. We believe that
the Director of the agency should, after consulta-
tions with the host governments, prepare for sub-
mission to the 12th General Assembly specific pro-
I^osals — witliout jDrejudice, of course, to the refu-
gees' right of repatriation or compensation — for
future implementation of the various responsibili-
ties with which the agency is now charged.

The third and most important problem that I
have referred to is contributions. I think most
of the speakers here have agreed with Mr.
Labouisse in his desire to undertake improve-
ments— a desire he has expressed in all his reports.
My delegation is in complete accord, but we do

Department of State Bulletin

not think that only a few governments and par-
ticularly the United States can and should assume
full financial responsibility for insuring the wel-
fare of the refugees.

We will always stand ready to match generosity,
but we have all agreed over and over again here at
the TJnited Nations when we have discussed other
contributions — United Nations Children's Fund,
technical assistance, etc. — that the very health and
moral fiber of the United Nations is not served by
contributions from a limited number of nations.
One reason why there is so much interest, so much
support, in the United Nations Children's Fund
and technical assistance programs is because, in
1956, 79 countries completed their contributions
to the United Nations Children's Fund and, in
195C, 61 countries pledged to the Technical As-
sistance Program.

Let's put all our efforts in a wider basis for
pledging of contributions and, if possible, larger
contributions. By contributions from more coun-
tries, by increased contributions, we can then fore-
see better standards of relief as requested by the
Director. If, on the other hand, contributions
fall short of the budget requirements, then the
Director will have no choice — and it will be a tragic
and unfortunate choice — but to reduce the alread5
meager services to the refugees. If tliis tragedy
should happen and services have to be reduced, we
wish that food and clothing be the very last to
suffer.

Mr. Chairman, now let us turn to the question
of the rehabilitation fund. In the past my Gov-
ei'nment has always actively supported substantial
rehabilitation programs. By this we mean pro-
grams that would improve the welfare of the
refugee, provide him with a sense of security and
a sense of belonging among his Arab brethren, but
at the same time not prejudice his right to repatri-
ation or compensation. Many diligent efforts
have been made — such as those devoted to the de-
velopment of the Jordan Valley, made by my
Government. Unfortunately, agreements for
these projects have not materialized although, as
the Director has indicated, they have proved feas-
ible and technically somid. We are still hopeful
that projects will be agreed upon which will ac-
complish economic benefits to both the govern-
ments involved and to the refugees.

Therefore, we would like to suggest that the
Director's discretion with regard to use of reha-
bilitation funds be broadened to the extent that

he may in his discretion disburse moneys from
the rehabilitation fund for general economic de-
velopment projects, subject only to agreement by
the recipient government that within a fixed pe-
riod it will assume financial responsibility for an
agreed number of refugees. We think, Mr. Chair-
man, in making such a suggestion that the projects
which may be agreed upon can really benefit the
economies of the Arab world and will also con-
tribute to the welfare of the refugees. In line
with our interest in maintaining the rehabilita-
tion fund, I can assure this Committee that my
Government is presently making plans for a fur-
ther contribution to the rehabilitation fund.

Mr. Chairman, I want to again express our
admiration for the work which the Director of
the United Nations Eelief and Works Agency has
done. If one smgle example is needed to demon-
strate the efficiency and capacity of the Director
and the agency, it can be found in the special
report of the Director concemiing the agency's ac-
tivities in the Gaza Strip between November 1st
and mid-December of last year.- Despite military
operations and the deplorable damage and loss of
life, my Government feels that it can truly say
"well done" to the brilliant performance of the
agency.

May I again appeal to all countries to remember
that in this problem we are not dealing with a
political situation as such. We are dealing with
human beings who deserve more of our sympathy
and consideration than they have received in the
past.

STATEMENT OF FEBRUARY 22

U.S. delegation press release 2628

This Committee now has before it a draft resolu-
tion which has the cosponsorship and support of
the United States. Much of its language is fa-
miliar to us since the problem has been long before
us and, regrettably, will be before us probably for
some years to come. I say regrettably because
human beings and their sufferings are involved.
It is in a continued and renewed effort to assist in
the alleviation of this mass misery that the United
States hopes that this resolution will receive the
large majority support it warrants.

Mr. Chairman, as we see it, this resolution faces

' U.N. doc. A/3212 Add. 1.

April 8, 7957

587

facts, many of which are regi'ettable, particularly
in the fourth, fifth, and sixth preambular para-
graphs, whicli relate to the inadequacy of contri-
butions, to the fact that the hope of repatriation
or compensation has not been fulfilled, and that,
as the Director had to point out most unliappily
in his report, cooperation between certain host
governments and the agency has been inadequate.
We believe it necessary that there be improvement
on all of these points in the coming year or else
the agency cannot hoi^e to carry out its mandate.

The first operative paragraph also faces facts in
that it should be an earnest effort on the part of
the Director and the governments concerned to
plan ahead in such a manner that the relationships
between the agency and the host governments are
so adjusted that the responsibilities with which
the agency is now charged may carry on into the
future in a manner best designed to insure the
future welfare of the refugees and face the fact
that the mandate of the agency by Resolution 818
(IX) is ended on June 30, 1960. In urging this
step we want to stress that what we are asking the
Director to do is in no way prejudicing the rights
of the refugees or prejudging the solution of this
problem. We fully appreciate the difficulties
which the host governments may be forced to face,
and this body should in the future be prepared to
consider what those difficulties may be and what it
can do about them. It is for this reason that we
believe the Director should report to the next Gen-
eral Assembly along the lines indicated in the first
operative paragraph. For our part, the United
States stands ready to be of such assistance as may
be indicated. The second operative paragraph is
a reminder to all of us that the agency has certain
rights and privileges which we must all respect if
it is to function as expected of it. Accordingly, we
believe it appropriate to request of the host gov-
ernments the necessary cooperation with the
agency and with its personnel and to extend to
them every appropriate assistance in carrying out
their functions.

The third operative paragraph is traditional
in resolutions on this problem in that it directs
the agency to pursue its programs, bearing in mind
the limitations imposed u,pon it by the contri-
butions.

The fourth operative paragraph indicates our
continued interest and concern that rehabilitation
projects capable of supporting a substantial num-
ber of refugees be sought and carried out. The

United States has given much thought to this mat-
ter and still believes that it is in the interests of
the Arab peoples themselves that projects be found
which will not only benefit the refugees but can
have a profoundly beneficial effect on the Arab
governments. For this reason, we are proposing
in operative paragraph 5 that the Director's au-
thority be broadened from what it has been to per-
mit him to use rehabilitation funds, as they may be
available, to arrange with individual host govern-
ments for general economic development projects.
We believe that such arrangements should involve
agreement on the part of any host government
that within a fixed period of time it will assume
financial responsibility for an agreed number of
refugees. Certainly it is in the interests of all con-
cerned that every effort be made to reduce the refu-
gee .problem as rapidly as possible. We are hope-
ful that this broader discretion will be of gx-eat
assistance.

The remaining operative paragraphs are famil-
iar in that they request the agency to continue its
consultations with the Palestine Conciliation Com-
mission. It reiterates its appeal to private organi-
zations and governments to assist in meeting the
serious needs of other claimants for relief in the
area. It requests the Negotiating Committee for
Extrabudgetary Funds to continue to seek the fi-
nancial assistance needed and, most important of
all, urges all governments to increase their contri-
butions to the extent necessary to carry through
the agency's programs.

The tenth operative paragraph takes cogni-
zance of the fearless and courageous work of faith-
ful international servants who continue to carry
out tlie program for the refugees in the Gaza Strip
following the recent hostilities. The Director and
the agency ought to be commended for this initia-
tive.

Finally, it expresses the General Assembly's
thanks to the Director and the staff of the agency
for their continued faithful efforts. Thanks are
also always due to the many private organizations
which have for so long continued their valuable
work in assisting the refugees.

In conclusion, Mr. Chairman, may I say that it
is our hope that the passage of this resolution will
lend new vitality to the efforts of all of us in help-
ing to assist and solve the Arab refugee problem.
It is the conviction of my Government that failui-o
to act in the affirmative way which we propose
can have most unfortunate results for the refugees.

588

Deparlmenf of State Bulletin

and they should come first in the minds of all of
us here.

TEXT OF RESOLUTION ^

The General Assembly,

Recalling its resolutions 194 (III) of 11 December 1948,
302 (IV) of 8 December 1949, 393 (V) of 2 December
1950, 513 (VI) of 26 January 1952, 614 (VII) of 6 No-
vember 1952, 720 (VIII) of 27 November 1953, 818 (IX)
of 4 December 1954 and 916 (X) of 3 December 1955,

Noting the annual report and the special report of the
Director of the United Nations Relief and Works Agency
for Palestine Refugees in the Near East and the report
of the Advisory Commission of the Agency,*

Having reviewed the budget for relief and rehabilita-
tion prepared by the Director of the Agency,

Noting with concern that contributions thereto are not
yet sufficient.

Noting that repatriation or compensation of the refu-
gees, as provided for in paragraph 11 of resolution 194
(III), has not been effected, that no substantial progress
has been made in the programme endorsed in paragraph
2 of resolution 513 ( VI ) for the reintegration of refugees
and that therefore the situation of the refugees continues
to be a matter of serious concern.

Noting that the host Governments have expressed the
wish that the Agency continue to carry out its mandate
in their respective countries or territories and have ex-
pressed their wish to co-operate fully with the Agency
and to extend to it every appropriate assistance in carry-
ing out its functions, in accordance with the provisions of
Articles 104 and 105 of the Charter of the United Nations,
the terms of the Convention of Privileges and Immuni-
ties, the contents of paragraph 17 of its resolution 302
(IV) of 8 December 1949 and the terms of the agreements
with the host Governments,

1. Direets the United Nations Relief and Works Agency
for Palestine Refugees in the Near East to pursue its
programmes for the relief and rehabilitation of refugees,
bearing in mind the limitation imposed upon it by the
extent of the contributions for the fiscal year;

2. Requests the host Governments to co-operate fully
with the Agency and with its personnel and to extend to
it every appropriate assistance in carrying out its
functions ;

3. Requests the Governments of the area, without prej-
udice to paragraph 11 of resolution 194 (III), in co-
operation with the Director of the Agency, to plan and
carry out projects capable of supporting substantial num-
bers of refugees ;

4. Requests the Agency to continue its consultation with
the United Nations Conciliation Commission for Pales-

' U.N. doe. A/Res/524 ; adopted by the Special Political
Committee on Feb. 23 (A/SPC/L.13/Rev. 2) by a vote
of 66 to 0 with 1 abstention (Iraq) and by the General
Assembly on Feb. 28 by a vote of 68 to 0 with 1 abstention
(Iraq).

' U.N. doc. A/349S.

tine in the best interest of their respective tasks, with
particular reference to paragraph 11 of resolution 194
(III);

5. Decides to retain the rehabilitation fund and au-
thorizes the Director in his discretion to disburse such
monies, as may be available, to the individual host Gov-
ernments for general economic development projects,
subject to agreement by any such Government that within
a fixed period of time it will assume financial resiMJusibil-
ity for an agreed number of refugees, such number to
be commensurate with the cost of the project without
prejudice to paragraph 11 of resolution 104 (III) ;

0. Reiterates its appeal to private organizations and
Governments to assist in meeting the serious needs of
other claimants for relief as referred to in paragraph 5
of resolution 916 (X) ;

7. Requests the Negotiating Committee for Extra Budg-
etary Funds, after receipt of the requests for contribu-
tions from the Director of the Agency, to seek the financial
assistance needed from the United Nations Members;

8. Urges all Governments to contribute or to increase
their contributions to the extent necessary to carry
through to fulfilment the Agency's relief and rehabilita-
tion programmes ;

9. Notes with approval the action of the Agency in
continuing to carry out its programme for the refugees
in the Gaza Strip;

10. Expresses its thanks to the Director and the staff
of the Agency for continued faithful efforts to carry out
its mandate, and to the specialized agencies and the many
private organizations for their valuable and continuing
work in assisting the refugees ;

11. Notes that the Agency is changing its financial period
from a fiscal to a calendar year basis and that conse-
quently the current budgets cover an IS-month period
from 1 July 1956 to 31 December 1957, and that special ar-
rangements for the audit of funds in this period are being
made with the United Nations Board of Auditors ;

12. Requests the Director of the Agency to continue
to submit the reports referred to in paragraph 21 of reso-
lution 302 (IV) as modified by paragraph 11 above.

TREATY INFORMATION

Current Actions

MULTILATERAL
Customs Tariffs

Protocol modifying the convention signed at Brussels July
5, 1890 (26 Stat. 1518), creating an international union
for the publication of customs tariffs. Done at Brassels
December 16, 1949. Entered into force May 5, 1950.'
Adherence deposited: Rumania, February 13, 1957.

' Not in force for the United States.

April 8, 7957

589

Trade and Commerce

Agreement on Organization for Trade Cooperation. Done

at Geneva March 10, 1955.^

Notification deposited {recognising signature as bind-
ing) : Austria, February 11, 1957.
Protocol of rectification to French text of the General

Agreement on Tariffs and Trade. Done at Geneva June

15, 1955. Entered into force October 24, 1956, for those

provisions vphich relate to parts II and III of the

General Agreement. TIAS 3677.

Notification deposited (recognizing signature as bind-
ing): Austria, February 11, 1957.
Sixth protocol of supplementary concessions to the General

Agreement on Tariffs and Trade. Done at Geneva

Mav li3, 1956. Entered into force June 30, 1956. TIAS

3591.

Schedules of concessions enter into force: Dominican
Republic, April 10, 1957.

Wheat

International wheat agreement, 1956. Open for signature
at Washington through May 18, 1956. Entered into
force July 16, 1956, for parts 1, 3, 4, and 5, and August
1, 1956, for part 2. TIAS 3709.
Acceptance deposited: Lebanon, March 20, 1957.

BILATERAL

Dominican Republic

Agreement for establishment of a long range radio aid to
navigation station at Cape Frances Viejo. Signed at
Washington March 19, 1957. Entered into force March
19, 1957.

France

Agreement to facilitate interchange of patent rights and
technical information for defense purposes. Signed at
Paris March 12, 1957. Entered into force March 12,
1957.

Greece

Agreement further amending the agricultural commodities
agreement of August 8, 1956, as amended January 21,
1957 (TIAS 3633, 3741), by providing for the purchase
of additional wheat. Effected by exchange of notes at
Athens March 1 and 4, 1957. Entered into force March
4, 1957.

Agreement amending the agricultural commodities agree-
ment of August 8, 1956 (TIAS 3633), by providing for
the purchase of wheat with funds allotted for the pur-
chase of lard. Effected by exchange of notes at Atliens
February 13 and 23, 1957. Entered into force February
23, 1957.

Jordan

Agreement amending the agreement of May 1 and June 29,
1954 (TIAS 3145), relating to duty-free entry and de-
frayment of inland transportation charges for relief
supplies and packages. Effected by exchange of notes
at Amman July 6, September 28, and October 15, 1955.
Entered into force September 28, 19.55. (Substitution
for exchange of notes of March 15 and 24, 1955, listed
in Bulletin of May 9, 1955. )

Switzerland

Exchange of notes at Washington March 1 and 4, 1957,
approving the agreed minute of February G, 1957, re-
lating to interpretation of the air transport agreement
of August 3, 1945, as amended (TIAS 1576, 1929).
Entered into force March 4, 1957.

DEPARTMENT AND FOREIGN SERVICE

Designations

Norman B. Hannah as Special Assistant to the Deputy
Under Secretary for Administration, effective March 11.

Charles Whitehouse as Special Assistant to the Deputy
Under Secretary for Economic Affairs, effective March 11.

Max V. Krebs as Special Assistant to the Under Secre-
tary, effective March 24.

' Not in force.

Check List of Department of State
Press Releases: Marcli 18-24

Releases may be obtained from the News Division,
Department of State, Washington 25, D. 0.

Press releases issued prior to March 18 which ai>
pear in this issue of the Bulletin are Nos. 119 and
122 of March 7 and 143 of March 13.

Subject

Educational exchange.

Dulles : death of President Magsaysay.

Meeting of Secretary Dulles and Mrs.
Meir.

Progress on Inter-American Highway.

Phillips : statement on plant protection
convention.

Drew nominated Ambassador to Haiti
(biographic details).

Bonsai nominated Ambassador to Bo-
livia (biographic details).

Wilcox : "The United Nations and Pub-
lic Understanding."

Agreement with Dominican Republic
for LORAN station.

Young nominated Ambassador to Neth-
erlands (biographic details).

U.S.-Netherlands air transport nego-
tiations.

Educational exchange.

Polish coal mining officials visit U.S.

Exchange of letters with the Nether-
lands on civil air negotiations.

New U.S. member of Iraq Development
Board.

Educational exchange.

Bohlen nominated Ambassador to Phil-
ippines (biographic details).

Fifth anniversary of Escapee Program.

Russell nominated Ambassador to New
Zealand (biographic details).

Eisenhower : anniverssary of IPakistan
Republic.

Signing of income-tax protocol with
Japan.

*Not printed.

tHeld for a later issue of the Bulletin.

No.

Date

*153
154
1.55

3/18
.3/18
3/lS

156
tl57

3/18
3/19

*1.58

3/18

*159

3/18

160

3/19

161

3/19

*l(i2

3/19

163

3/19

*164

tlC5

166

3/20
3/21
3/21

167

3/21

*16S
*169

3/21
3/22

tl70
*171

3/22
3/22

172

3/23

173

3/23

590

Depar/menf of Sfafe Bulletin

April 8, 1957

Index

Vol. XXXVI, No. 928

American Republics

Intcr-Americau Highway Nearin;; Conipletiun . . 564
U.S. Contribution To Help Fight Malaria in
American Republics (Milton Eisenhower, Mora,
Soper) 565

Atomic Energy. United States and United King-
dom Exchange Views at Bermuda Meeting (text
of joint communique) 561

Aviation

Air Transport Agreement Between United States

and Mexico (text) 575

U.S. and Netherlands Resume Air Transport Nego-
tiations (Eisenhower, Drees) 579

Belgium. Notice of Intention To Enter Into
Limited Trade Agreement Negotiations With the
United Kingdom and Belgium 581

Communism. The Cold War and the Universities

(Oechsner) 571

Congress, Tlie. Amending the U.S. Information

and Educational Exchange Act of 1948 ( Lightner ) . 566

Department and Foreign Service. Designations

(Hannah, Whitehouse, Krebs) 590

Dominican Republic. U.S.-Dominican Agreement

on LORAN Station 574

Economic Affairs

Inter-American Highway Nearing Completion . . 564

New U.S. Member Assumes Duties on Iraq Develop-
ment Board 563

Notice of Intention To Enter Into Limited Trade
Agreement Negotiations With the United King-
dom and Belgium 581

President Asks Study of Tariff Quota on Alsike

Clover Seed 584

President Decides Against Study of Tariff on

Hatters' Fur 585

President Orders Investigation of EITects of Tung
Oil Imports 585

United States and Japan Sign Income-Tax Protocol . 574

Educational Exchange. Amending the U.S. Infor-
mation and Educational Exchange Act of 1948
(Lightner) 566

Europe. United States and United Kingdom Ex-
change Views at Bermuda Meeting (text of joint
communique) 561

Health, Education, and Welfare

The Cold War and the Universities (Oechsner) . . 571
U.S. Contribution To Help Fight Malaria in Ameri-
can Republics (Milton Ei-senhower, Mora, Soper). 565

Hungary. The United Nations and Public Under-
standing (Wilcox) 555

Iraq. New U.S. Member Assumes Duties on Iraq
Development Board 563

Israel. Meeting Between Secretary Dulles and

Israeli Foreign Minister (text of statement) . . 562

Japan. United States and Japan Sign Income-Tax

Protocol 574

Mexico. Air Transport Agreement Between United

States and Mexico (text) 575

Middle East

Meeting Between Secretary DuUes and Israeli For-
eign Minister (text of statement) 562

The United Nations and Public Understanding

(Wilcox) 555

U.N. Relief and Works Agency for Palestine Refu-
gees (Lord) 585

United States and United Kingdom Exchange Views

at Bermuda Meeting (text of joint communique). 561

Mutual Security. United States and United King-
dom Exchange Views at Bermuda Meeting (text
of joint communique) 561

Netherlands. U.S. and Netherlands Resume Air

Transport Negotiations (Elsenhower, Drees) . . 579

Pakistan. Anniversary of Establishment of Paki-
stan as Republic (Eisenhower) 563

Philippines. Death of President Magsaysay of the

Philippines (Eisenhower, Dulles) 563

Presidential Documents

Anniversary of Establishment of Pakistan as

Republic 563

Death of President Magsaysay of the Philippines . 563

President Orders Investigation of ElfCects of Tung

Oil Imports 585

U.S. and Netherlands Resume Air Transport Nego-
tiations (Eisenhower, Drees) 579

Refugees. U.N. Relief and Works Agency for

Palestine Refugees (Lord) 585

Treaty Information

Air Transport Agreement Between United States

and Mexico 575

Current Actions 589

United States and Japan Sign Income-Tax Protocol . 574
U.S. and Netherlands Resume Air Transport Nego-
tiations (Eisenhower, Drees) 579

U.S.-Dominican Agreement on LORAN Station . . 574

United Kingdom

Notice of Intention To Enter Into Limited Trade
Agreement Negotiations With the United King-
dom and Belgium 581

United States and United Kingdom Exchange Views
at Bermuda Meeting (text of joint communique). 561

United Nations

The United Nations and Public Understanding

(Wilcox) 555

U.N. Relief and Works Agency for Palestine Refu-
gees (Lord) 585

United States and United Kingdom Exchange Views
at Bermuda Meeting (text of joint communique) . 561

Name Index

Drees, Willem 580

Dulles, Secretary 562,563

Eisenhower, Milton S 565

Eisenhower, President 561, 563, 580, 585

Hannah, Norman B 590

Krebs, Max V 590

Lightner, E. Allan, Jr 566

Lord, Mrs. Oswald B 585

Macmillan, Harold 561

Magsaysay, Ramon 563

Meir, Golda 562

Mora, Jos6 A 565

Dechsner, Frederick Cable 571

Soper, Fred L 565

Whitehouse, Charles 590

Wilcox, Francis O 5.55

Willscm, Clifford 563

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OFFICIAL BUSINESS

Foreign Relations of the United States

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

1939, Volume II

General, The British Commonwealth, and Europe

The first 212 pages of this volume contain papers on various general
subjects: Antarctic claims and exploration, assistance to refugees, fisheries
oil' the coast of Alaska, and a number of technical economic problems.

Documentation on relations with the British Commonwealth (pp. 213-
364) includes sections on the United Kingdom, Australia, Canada, and
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diplomacy. Among the war subjects treated is the sinking of the S.S.
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The remaining 534 pages of documentation cover relations with
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While the coming of the war is primarily treated in volume I, this volume
contains the record on the absorption of Albania by Italy, problems arising
from the annexation of Austria by Germany, and the Spanish Civil War.
In the section on Italy are recorded suggestions by President Roosevelt
regarding the opportunity for Mussolini to contribute to the maintenance
of peace. The appointment of Myron C. Taylor as the President's per-
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"736^3. / 1^20

IE

FFICIAL

EEKLY RECORD

Vol. XXXVI, No. 929 AprU 15, 1957

SECRETARY DULLES' NEWS CONFERENCE OF

MARCH 26 595

STATUTE OF INTERNATIONAL ATO!MIC ENERGY
AGENCY TRANSMITTED TO SENATE

President's Message of Transmittal 615

Report by Secretary Dulles 616

Summary of Statute 618

THE SOVIET-OCCUPIED ZONE OF qERMANY:
A CASE STUDY IN COMMUNIST CONTROL • by

Eleanor DulU's 605

INTERNATIONAL COOPERATION IN CLIMATOLOGY

• Article by Helmut E. Landsberg 612

MITED STATES
)REIGN POLICY

For index see inside back cover

THE DEPARTMENT OF STATE a

Boston Public Library
Super'n*""'' ■"* of Documents

MAY 6 - 1957

Vol. XXXVI, No. 929 • Publication 6476
April 15, 1957

For sP'le by tho Superintendent of Documents

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Price:

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Note: Contents of this publication are not
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The Department of State BULLETIN,
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the Government with information on
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Secretary Dulles' News Conference of March 26

Press release 175 dated March 26

Secretary Dulles: Since I last met with you, I
have been to two important international confer-
ences. The first was the conference of the South-
east Asia Treaty Council, which was held in Can-
berra, Australia, and then more recently, the
Bermuda conference with the Prime Minister and
the Foreign Secretary of the United Kingdom.
Both of those conferences have been important,
useful, and I think one can use the word "success-
ful" conferences. I would be glad to answer ques-
tions about those conferences or any other matters
that you want to question me about.

Q. Mr. Secretary, as a result of the talks with
the Prime Minister at Bermuda, do you expect a
closer joint effort in the intelligence and planning
fields ietween the United States and Britain?

A. We do not plan to have any substantive
change in that respect. We have, of course, for a
long time had an association with the United
Kingdom and Canada and with the Nato organi-
zation, particularly in relation to such matters as
an alert if there should seem to be a danger of a
Soviet attack. The Nato alert arrangement re-
lates primarily to an attack, you might say, from
the East, and the Canadian and U.K. arrangement
to a possible attack from the polar area, from the
north. There was some discussion about review-
ing and perfecting some of these alert arrange-
ments, but that is the only understanding on the
matter that took place.

Q. Mr. Secretary, is it correct that your under-
standings or conclusions or agreements, ivhatever
the proper word may ie, were set down on paper
and initialed at Bermuda?

A. There was no understanding put down on
paper at Bermuda except a procedural one for re-
furbishing, you might say, or reviewing the intelli-
gence arrangements which we have concerning
alerts.

Q. That is, there were no understandings, for
example, on what policies the two Governments
might pursue in the Middle East under various
contingencies depending on the Hammarshjold
inission in Cairo?

A. No, although in the course of the long, exten-
sive talks which we had and particularly some in-
formal talks that took place, particularly in the
dinner and evening sessions, we talked about a
great variety of subjects, and I believe those things
were touched upon, but they did not lead to any
agreement.

Q. That is, to written agreements? Nothing
that teas committed?

A. No. I would stick by my original language.

Q. In other words, each Government has its own
position and not the same position on what it will
do under these various possible contingencies?

A. I would say that the exchanges of views that
took place were useful, I think, in making it
likely that there would be a common policy. But
the contingencies tliat we had to deal with were so
varied and so unpredictable that it seemed to be
rather unprofitable to try to reach a formal agree-
ment as to what we would do in any one of a score,
perhai)s, of possible variations of future develop-
ment.

Q. Mr. Secretary, has this Government been re-
ceiving any interim repoi'ts from Mr. Hammar-
skjold, and, if so, could you characterize them?

A. We have received no interim reports from
Mr. Ilanunarskjold. We liave through Ambas-
sador Hare had some contacts with him and with
the Egyptian Government, through which we have
gotten some inkling, I woultl say, as to the nature
of the talks, but we are still quite in the dark this
morning, for example, as to what has taken place
during the recent discussions. Tliose discussions
are not yet concluded. There was one last night,

April 75, 1957

595

which I think probably was an important one.
We have no report as yet. I understand Mr.
Hammarskjold will shortly be returning, at which
time he will probably make a report, which will be
available to us and to others.

Q. Yau could not say now as to lohether you are
hopeful or not of the progress of his talks?

A. Well, I used in the background conference
which I had at Bermuda the phrase "cautious
optimism," and I think that that is a phrase which
can be safely taken out of the wraps of the back-
ground conference and even permitted publicly.

Q. Mr. Secretary, what is your understanding
as to Mr. Hammarskjold'' s impending report? To
whom toould it he made? To the Advisory Com-
mittee, or what?

A. He would make it presumably to the Advis-
ory Committee, at least. It might be made public.
I don't know what his intentions are.

Q. Yes. But I was wondering as to whom if
would he addressed in the first place.

A. Yes.

Q. I notice annex II of the Bermuda comtnu-
nique ^ dealt with a joint policy of the two coun-
tries toward testing of nuclear weapons. Did that
come ahont as a result of the protests on the part
of Japan?

A. No. It did not come about as a result of
those protests, except as you can say that those pre-
occupations held by Japan were a part of the sum
total of the concern which prompted us to make
some statement on the subject. But it was not
specifically ascribable to any one cause.

Q. Mr. Secretary, at yesterday's White House
hriefing of the congressional leaders on the Ber-
mmda conference, to what extent was the possihilify
or the prospect of the United States^ providing
guided missiles for France discussed?

A. Well, it was discussed only in a very casual
way. A question was asked as to whether there
was a possibility that guided missiles might be
supplied to countries other than the United King-
dom, and the reply made was that we were not
actually giving any consideration to that because
the whole project was still in an experimental
stage. These missiles are not actually (lying yet,

' For text, see Bulletin of Ai»r. 8, l'J57, p. 501.

and we can't predict with absolute certainty as to
when they can be made available even for the
United Kingdom. It seemed that the United
Kingdom was the first place to start in this busi-
ness of deploying these missiles to areas from

Deployment of Ballistic Missiles
in United Kingdom

statement by James C. llugertu
Press Secretary to the President

White House press release dated March 25

The project for the deployment of inteiiuedlate-
range ballistic missiles in the United Kingdom is
an initial project which itself is yet to be fully de-
veloped, both from the standpoint of the weapons
themselves and the precise conditions for deploy-
ment. This is the logical place of beginning. Sub-
sequent deployments will, of course, remain to be
considered but are not under active consideration.

which they could, if need be, serve most effectively
as a deterrent, and this seemed to be the best way
to start. Now, in principle, there is no reason
to limit it to the United Kingdom, except that as
a practical matter it would be premature to start
considering it on a broader basis when we still
have quite a ways to go before this particular
United Kingdom project can be realized.

Egypt and the UNEF

Q. Mr. Secretary, does the United States he-
lieve that Egypt should make a pledge of nonhel-

ligereney to Israel?

A. We believe that under the Armistice Agree-
ments there is not a right to exercise belligerent
rights. We believe that is evidenced by the fact
that that was the basis for the Security Council
decision of 1951 with reference to the right of
passage of cargo for Israel throngli the Suez
Canal. And the basis for that decision was that
under the Armistice Agreement Egypt did not
possess belligerent rights. We voted for that reso-
lution at the time, and we adhere to the view
which was then held.

Q. Mr. Secretary, do xre helieve that the United
Nations Emergency Force should he stationed on
hofh sides of the armistice line?

A. We believe that it would conduce to the tran-

596

Department of State Bulletin

quillity of the area if the United Nations Emer-
gency Force was able to station itself astride, you
might say, of the armistice line. That would in-
volve some slight positioning of troops on the
Israeli side as well as upon the non-Israeli side
of the armistice lines, and that seems to have been
called for by the United Nations resolution of
February 2, 1 think it wag, calling for the station-
ing of Unef forces "on"' the armistice line.- Since
the armistice line is a line of no measurable width,
but you might say an invisible line, it is not pos-
sible for human beings to stand "on" it without
being a little bit on one side and on the other.

Q. Mr. Sec7'etary, did you discuns this with Mrs.
Meir ichen she ivas here and ask that she accept
this/

A. Yes, we did discuss it,

Q. Would yov, teU us her answer?

A. No, I don't think I would be wise in doing
that.

Q. Mr. Secretary, on that point, is the Ameri-
can position that UNEF has in e-ffect completed
its task in the post-Suez-invasion period and you
are noio trying to turn it, or would like to see it
turned, into an organization which would back
up the armistice which was settled, agreed upon,
prior to this — in other words, into a long-term, af-
fair, having nothing to do with the events siiice
la.st fall?

A. "Well, that is one way of putting it; perhaps
it puts it a little bit more jjositively than I would
put it. I think it must be recognized that there is
a chance of hostilities breaking out again in the
event that restraints are not exercised by both
sides. But I would not say that the initial role
of the United Nations Emergency Force was
exhausted until there is more assurance than there
is today that belligerent rights may not be exer-
cised if it should wholly withdraw. And, while
it is true that the initial hostilities have come to
a close and the initial forces of invasion have been
totally withdrawn, I do not think that there is
assurance of tranquillity which would indicate
that the initial mission was wholly accomplished.
That depends, of course, upon how one interprets
the original terms of reference. But I think that

-Ibid., Feb. 25, 1957, p. 327.
April 15, 1957

the original terms of i-eference are broad enough
to cover the prospective activities of the Unef.

Q. Mr. Secretary, it seems to be the position of
some powers that UNEF is there at the sufferance
of Egypt and must leave when Egypt decides that
it viust go. Can you tell us what the United States
position on that is?

A. The generally accepted view in the United
Nations is that the General Assembly has no right
to imj^ose upon any nation the presence of any
observers or i-epresentatives or forces of the United
Nations and that, in order for them to enter upon
the territory of another state, they have to have
the consent of that state. Now once the consent
has been given, then I think a good argument can
be made that the consent cannot be arbitrarily
withdrawn, frustrating the original project,
because other people change their positions in
reliance of the original consent, forces are set in
motion, a chain of events has occurred. And we
would question, certainly, whether Egypt has the
right arbitrarily to alter and change a consent once
given until the purpose of that consent has been
accomplished.

Alternate Routes for Oil

Q. Mr. Secretary, would you give us yov/r views,
sir, about the advisahility of having altei-nate
routes to bnng in the oil to the West, such ai pipe-
lines and super tankers, in case Mr. Nasser gets
balky over his canal again?

A. There are already in process of formation
plans for alternatives or supplements to the Suez
Canal, particularly in relation to the transporta-
tion of oil. Those consist primarily of projects for
new pipelines and also for the construction of
larger tankers. Now those plans are, as I put it,
in process of formation, primarily by private con-
cerns who are doing so uniler the impulse of ordi-
nary commercial considerations. There is going
to be, presumably, an increased demand for oil.
The facilities of the Suez Canal, even if they
remain fully available, are not going to be ade-
quate. Consequently, private concerns which are
interested in the transportation of oil are them-
selves considering the possibilities of additional
pipelines and of additional large tankers. Now
those projects are under way, and they are under
way entirely under wliat I refer to as a commercial
impetus to meet demands. They are being met

597

primarily by companies whose business it is to
anticipate and meet public demands for commer-
cial reasons. These big tankers are being built.
Today there are, I understand, being built by an
American concern 100,000-ton tankers in Japan.
And companies interested in the oil are meeting,
I think in London— have been meeting— to con-
sider a new pipeline project.

Now these are going to go ahead, I think, in
any event because of the inadequacy of the canal
to meet the anticipated future need. They will
go ahead at what you might call a normal com-
mercial rate if we think that the canal is going to
be a dependable reliance of the West. If it is felt
that the canal will not be a reliable dependence
of the West, then probably there will be added
to the commercial factor a political factor which
would accelerate these developments. That is
about the situation.

Q. Mr. Secretary., the Senate Foreign Relations
Committee yesterday put out a report saying that
tecause of its concentration on the world crises
the United States is in danger of overlooking the
interests of Central America and the Caribhean.
The report also says that '■''in this area, rightly or
virongly, the United, States is vietoed as neglect-
ful of its friends in the Western Hemisphere.'''' I
wonder if you care to comment on that?

A. I would question very much the accuracy of
that estimate of the situation. I believe that
never before in history has the United States paid
as much attention to its relations with the other
Republics of the Organization of American
States as has been the case during recent years,
and I think that there is an appreciation of that
fact by these governments. Just to illustrate:
For the first time now we meet regularly with the
representatives of the Organization of American
States to discuss with them world problems in
which they are interested — and I have met with
them before the summit conference, after the
summit conference, the subsequent Meeting of
Foreign Ministers, the Suez Canal crisis — things
which they are vitally interested in, because they
know that, if a war occurs, a general war occurs,
they are going to be in it. Then, of course, there
was the Panama meeting and the outgrowths of
that meeting. I believe that we are giving very
great attention, in fact an unusual amount of at-
tention, to our relations with all the Latin Ameri-
can States.

Q. Mr. Secretary, I would like to check hack on
an answer you gave a moment ago. Do I under-
stand it is the position of the United States that
the Egyptian Government does not have the
foioer, legally speaking, under present circwm-
stances to compel United Nations forces to ivith-
draw from its territory?

A. The problem I don't think permits of a
categorical answer. Now there was one question
put to me here that suggested that the United
Nations had accomplished its original mission, to
which the consent of Egypt had been given, and
that therefore its continuance there in effect was
for a new purpose. If that's the case, and to the
extent that's the case, then the original consent
given by Egypt may have exhausted its purpose.
If that has not been the case, then I think the
consent given by Egypt cannot be arbitrarily
withdrawn. I don't say it can't ever be with-
drawn, but I say it can't be "arbitrarily" with-
drawn without giving countries who have relied
upon it an opportunity to turn around and re-
appraise their position in the light of the new
situation.

Q. Mr. Secretary, is it ymir view then that the
mission of UNEF has not been completed as yet?

A. Well, I indicated, I think, my views : I felt
that under a liberal construction of the original
mandate to the Unef, in the light of the present
situation and the fact that there is no clear as-
surance that hostilities — that belligerency — may
not reoccur, it is not correct to conclude that the
original mandate has been exhausted.

Q. Does the right of Egypt — or the question of
Egypfs right to withdraw its consent — is that af-
fected in any tvay hy the fact that Israel has so far
refused to alloio the UNEF to station its troops
on its side of the border?

A. Well, that is one of a number of factors that
enter into one's conclusions about this thing. That
is not an isolated and a single factor.

Seeking Advisory Opinion of World Court

Q. Mr. Secretary, does it remain this Govern-
menfs intention to attempt, together with other
poivers, to establish the principle of free or inno-
cent passage thi^ough the Gulf of Aqaba; and, if
so, can you give us an idea at whut time that will
he made?

598

Department of State Bulletin

A. It is our intention to do that. Tlint intention
was made clear I think by the aide memoire which
we gave to the Government of Israel and published
last February.^ Now the question of how it takes
place is not yet determined. I think that it is the
fact that a certain amoiuit of shipping is or shortly
will be in fact passing through the straits, al-
though I also thinlv that it is important to get a
decision by the International Court of Justice as
to what the legal rights of the parties are. Wc
indicated, indeed, in that aide memoire that that
would be a factor ; that we felt that the preponder-
ance of legal authority was so strong in favor of
the right of passage that we felt that we were en-
titled to insist upon a right of passage unless and
until there was a contrary decision by the World
Court. And you may recall that the report of the
Secretary-General ^ said that he did not think that
belligerent rights should be exercised in relation to
the Sharm el-Sheikh area and the Straits of Tiran,
because he also shared the view that the preponder-
ance of legal authority was that there was no right
to exercise belligerent rights and to stop innocent
passage through there. But it would be very help-
ful, I think, and it would be helpful also from the
Egyptian standpoint, to get a decision on that
matter. And consideration is now being given to
ways and means of seeking an advisory opinion on
that matter from the International Court of
Justice.

Q. Must each of the countries involved agree to
the competence of the Court 'before it can judge
the matter?

A. Well, the United Nations, acting either
through the Security Council or through the Gen-
eral Assembly, can request an advisory opinion
from the Court, and that is the procedure which is
presently being envisaged. Now, if you go to the
Court in what you might call an adversary pro-
ceeding, where one of the parties brings a case
against another, then that would require the ac-
ceptance by both parties of the jurisdiction of the
Court. That is not so surely obtainable, and there
would not be a case there unless and until there
was an effort to obstruct, and we don't want that to
happen. So we think the preferable procedure
is to try to get an advisory opinion. That, of
course, would take a qualified vote by the Security

'/Ji/rf., Mar. 11, 1957, p. 392.

- Ibid.. Feb. 18, 1957, p. 271 and p. 275.

April 15, 1957

Council or a two-thirds vote by the General As-
sembly, but we hope that that would be obtainable.

Q. Well, Mr. Secretary, what is the effect of
an advisory opinion? Does that become then res
.ndjudicata and, subsequently, an adversary would
merely apply to the Court for enforcement of an
injunction or the equivalent of an advisory
opinion?

A. Well, I think that's getting me a bit out of
my depth. That is a pretty complicated legal
problem which I wouldn't want to answer off-
hand. I used to take a good many days, and get
a good many dollars, for answering questions like
that. (Laughter)

Aid to Poland

Q. Mr. Secretary, 5 Tnonths ago yesterday, if my
dates are correct, you offered ecorwndc aid to
Poland out of our abundance. The negotiations
are still going on unfrwitfully. Can you tell us
whether this delay is explained by a change of pol-
icy here, or, if not, wlrnt is the cau^e of the delay?

A. I must confess that I am not as fully versed
about that topic as I should be. It is being han-
dled primarily by Mr. Dillon, and the recent de-
velo[)ments have oocuntid wliilo I havo b^jen in
Canberra or Bermuda, or getting ready for Ber-
muda. I don't have a full, up-to-date report about
that. My understanding is that at least up to the
time when I went away to Canberra, and I think
I reported it at my last press conference, there
had been going on merely a study of information
about the economic situation in Poland and the
ascertainment of what the needs might be. It had
not yet gotten down to a concrete negotiation. I
think probably I had better confine myself to
saying that I am not really up to date on the recent
developments, which are being handled by Mr.
Dillon.

Q. Can you say whether there has or has not
been any change in the attitude of this Govern-
ment toward extending aid?

»

A. There has been no change. At the time when
the negotiations were begun, the view was taken
that it was appropriate to consider that the pres-
ent Government of Poland was not so completely
dominated by the Government of the Soviet
Union, or by what is called in the legislation "in-

599

ternational communism," as wholly to preclude
the possibility of that aid. That was obviously a
pretty close decision that we came to, and at the
time we came to it it was decided we would keep
the situation under review because actions taken,
or omissions of action, might lead us to change our
judgment in that respect. I do not understand
that there is any recommendation to me to change
the opinion which I gave before I went away
in that respect.

Q. Mr. Secretary, on the Middle East pipeline
question, would you explain to us the thesis which
was apparently developed at Bernmda of giving
these pipelines, either existing or proposed, some
new international status?

A. The idea is the same idea which is applied
in this country to pipelines of an interstate charac-
ter, which to a very considerable extent are under
the jurisdiction and control of the Federal Gov-
ernment in order to give stability to the opera-
tion. Now in essence a pipeline is no different
from an international canal. They are both ways
of getting through land. You have the Treaty of
Constantinople of 1888, which gives international
status to the Suez Canal, and it seemed to be ap-
propriate to consider at least giving an interna-
tional status to a pipeline so that it could not be
arbitrarily interfered with by states through
whose territory the pipeline passed.

We have the experience of the pipeline, the so-
called I. P. C. [Iraq Petroleum Company] pipe-
line, which goes from Iraq through Syria, which
is subject to a pretty arbitrary action by the
Syrian Government and no country has any treaty
status to complain about. It is purely, or very
largely, a matter between the companies concerned
and the foreign government, and, while every gov-
ernment has a right to try to promote and pro-
tect the private interests of its citizens abroad, that
is quite different from the situation of a pipeline
governed by an international treaty. Thei'efoi'e,
consideration is being given to having a treaty
arrangement with the countries through which the
new pipeline would go. That, of course, presup-
poses that such a treaty arrangement is acceptable
to the countries concerned. You can't impose it
upon them.

This j^ipeline, if it goes through the north —
through Turkey, for example — is a pretty big oper-

ation and would cost a good deal more than the
Suez Canal originally cost. The cost may be
measured in terms of hundreds of millions of
dollars, and there is a reluctance, and a natural
and understandable reluctance, on the part of
investors to put that much money into it unless it
can get some kind of treaty protection.

Q. It does not apply to existing pipelines?

A. No.

Communist China

Q. At the Canberra meeting the final commumi-
que that was issued ^ spoke about a lessening of the
possibility of war in Asia. Would yo%i. attnbute
that to the growing strength of the free nations
through SEATO or beamse of a weakening of
the strength internally of Communist China?

A. I would ascribe it more to the development
of strength and unity of the countries around
Communist China, notably through the Seato
treaty and the other treaties which the United
States has, treaties with Korea, Japan, the Re-
public of China, the Philippines, and so forth,
which I think make it inexpedient for the Chinese
Communists to use methods of violence. They
started out by using primarily methods of violence.
They used those methods in North Korea, they used
them in Tibet, they used them in northern Viet-
Nam, and they started using them in relation to
Taiwan, the Straits of Formosa. Now I think the
growing strength and unity and demonstrated will
of the affected free nations to resist, and to resist
with a measure of unity, has made it seem inexpe-
dient to the Chinese Communists to use those
methods. But I attribute it more to that than to
an internal weakness within China because, while
undoubtedly there are many internal weaknesses,
those weaknesses do not primarily relate to a
weakening of their military power, which has
actually been developing, and their system of stra-
tegic air fields, railroads, and air power generally
has been increasing.

Q. Mr. Secretary, have you had opportunity
since your return to give any further attention to
the admitting of American correspmxdents to Red
China? What is the status?

' Ibiil., Apr. 1, l!),-)!, p. 527.

600

Department of State Bulletin

A. I have given a little thought to it as I have
had time to think and scribble down some ideas on
my plane trips recently. But I have not had an
opportunity to exchange my own thoughts with the
other officers of the Department who are primarily
concerned. I expect to be doing that within the
next few days, and it may or may not lead to some
positive conclusions.

Q. Mr. Secretary., the President said a couple
of weeks ago that he was going to discuss the sub-
ject with \jou. Have you talked about this par-
ticular thing of the admission of Am^iican cor-
respondents into Red China?

A. I chat with the President frequently about
this thing. Whether I have talked about it with
him since that press conference I am not sure, but
I am in close touch with the President about that
subject.

Resuming Traffic in Suez Canal

Q. Mr. Secretary, could you give your evalua-
tion of the prospects of resuming traffic in the
Suez Canal?

A. I know no more than what is public knowl-
edge. It loolvs as though the canal would be open
for most vessels \Titliin perhaps a couple of weeks.
It is increasingly open to vessels of light draft.
It is not possible to say at any one moment whether
it is "open" or not because it all depends upon
"open to what ?'". Small vessels are going through
now, a little bit bigger vessels will be going
through tomorrow, bigger vessels the day after
that. It all depends upon what the draft is of
the vessels you are talking about. It will not be
open for the largest vessels probably for a some-
what longer period of time because I think there
is silt that has to be dug out and so forth. It will
probably be open increasingly from now on, and
most of the vessels, perhaps up to 10,000 tons, at
least, will be going through within a week or 10
days.

Q. Mr. Secretary, in this period ichat are these
vessels doing about paying tolls for the use of the
canal?

A. I believe that, insofar as any that have gone
through, they have paid tolls to the Suez Canal
Authority, but the number of vessels that have
gone through is not significant enough to estab-
lish any pattern.

Q. Do the vessels of the United States have any
instructions on this point?

A. No.

Q. Mr. Secretary, in the Bermuda com-munique,
when you discussed the nuclear testing, you set
forth the two stipulations, one that Russia give
prior announ-cetnent and the other that it admit
international observers to its tests. If the Rus-
sians were to surprise the world and accept these
two stipulatio-ns, hoio would that neiv situation
meet the objections of Japan and India and. other
powers? In other words, the testings would still
go on, would they not?

A. Yes, the testings would still go on. But
there would be a sounder basis than now exists for
bringing them under international control, and
some approach at least would have been made to
an international dealing with the matter. I don't
say that the acceptance of these two requirements
by the Soviet Union would solve the problem, but,
once you start down a certain path, it is easier
to go on down that path and that would be a be-
ginning and not an effective end.

Before we break u[3 — and I see it is beginning
to get late — I want to say that the last time we
met we ended up on a somewhat wondering note
about the status of romance. Mrs. Dulles and I
are sending a telegram today to Mr. and Mrs.
Harold Connolly at Prague extending to them our
congratulations.

Secretary Dulles Writes Foreword
for New Editions of "War or Peace"

IPress rplp;ise 17!) dated llarcli 20
DEPARTMENT ANNOUNCEMENT

Secretary Dulles made public on March 29 a
foreword he has written for new editions of his
book War or Peace, originally published in the
first part of 1950.

The new editions are in foreign languages —
Japanese, 25,000 volumes; Turkish, 20,000 vol-
umes; and Arabic, 5,000 volumes — and a paper-
backed reprint in English by the Macmillan Com-
pany in 50,000 volumes for overseas sale at 15
cents per copy, or less. Royalties have been waived
on all these editions.

April 15, J 957

601

Secretary Dulles wrote the foreword because in
the 7 years since the book was first published cer-
tain intervening events have occurred which call
for comment.

TEXT OF FOREWORD

It is a matter of gratification to me that War
or Peace continues to be published in various
languages. Tliis book was written in the early
weeks of 1950. It sought to portray the danger
of war and to describe the political policies and
spiritual attitudes which would be needed to win
the peace. As I write this new preface, seven
years later, I find little then said tliat now requires
to be unsaid. But certain intervening events have
occurred which call for comment.

Chapter Two, entitled "Know Your Enemy,"
is largely documented from the writings of Stalin,
notably his Problems of Leninism. Stalin has
fallen into some disfavor with the Soviet bloc at
the time of this writing. However, Soviet Com-
munism continues to adhere to the Stalin doctrine
which is cited.

ChajDter Six discusses the action of the United
Nations to create the Republic of Korea. It is
pointed out that, up to the time of writing, i. e.
early 1950, the influence of world opinion, focused
through the United Nations Assembly, had effec-
tively inhibited Communist invasion from the
North. But, I said, "It would, of course, be rash
to predict that this situation will continue indefi-
nitely."' It did not in fact continue indetinitely.
In June 1950 the Communists, in defiance of the
United Nations, struck with armed force against
the Republic of Korea.

The reaction of the United Nations is now a
matter of well known history. It marks a major
chapter in the evolution of world organization.
For whatever may have been the reasons which
encouraged the Communists to feel that they could
attack with impunity and without opposition, the
fact is that there was opposition, that it was
effective opposition and that the aggressors were
thrown back to and behind their point of begin-
ning. This is the first time in history that aggres-
sion has been met and punished by tlie power of a
previously organized world society.

However, this episode thi-ows additional light
on tile problem of world organization, dealt with

in Chapter Sixteen. The quick response of the
United Nations to the Korean aggression was
jjossible only because at that particular moment
the Soviet Union was "boycotting" the United
Nations Security Council, and thus failed to ex-
ercise its veto power.

The lesson drawn from this event has led to a
marked development of the system of regional
associations, described in Chapters Eight and Six-
teen. At the beginning of 1950, the only collective
defense arrangements were those created by the
Rio Treaty of 1947 and the North Atlantic Treaty
of 1949. Since then the North Atlantic Treaty
itself has been enlarged by the added member-
ship of Greece, Turkey, and the Federal Repub-
lic of Germany. There have also come into being
several security treaties in relation to Asia. There
are the United States-Philippine Treaty of Au-
gust 30, 1951; the United States-Australia-New
Zealand Treaty of September 1, 1951 (Anzus) ;
the United States-Japan Security Treaty of Sep-
tember 8, 1951; the United States-Republic of
Korea Treaty of October 1, 1953; the Southeast
Asia Security Treaty made on September 8, 1954,
by Australia, France, New Zealand, Pakistan,
the Philippines, Thailand, the United Kingdom
and the United States (Seato) which also covers,
by protocol, the territory of Cambodia, Laos, aiid
the Republic of A^ietnam ; and the United States-
Republic of China Security Treaty of December
2, 1954.

The United States is now joined with 42 other
nations in collective security pacts pursuant to
Article 51 of the United Nations Charter.

The imexpectedly rapid development of such
pacts, so that they now protect most of the world,
is a direct consequence of the Connnunist armed
aggression against the Republic of Korea, and
the fear that should another such aggression oc-
cur there could not be an effective United Nations
response because of the Soviet veto power.

Such pacts are not, however, the only alterna-
tive to veto in the Seciu'ity Council. The United
(Nations General Assembly acted in the fall of
1950 to adopt resolutions and rules so that it
could quickly react in the event of an armed at-
tack with which the Security Council cannot deal
by reason of veto by permanent members. This
General Assembly action was taken under the
title "Uniting for Peace," and was invoked in
the case of armed action in the Middle East in

602

Department of State Bulletin

October-November 1956. Thereby the United
Nations General Assembly assumed a new stature.

Chajiter Twelve, denlino; with the "Five- Year
Score," ends on a somewhat pessimistic note.
There is quoted the Izvestia editorial of January
1, 1950, listing tlie countries which had been
brought under the rule of Soviet Communism,
and it is noted that the editorial concludes, "Com-
munism will triumph ! A Happy New Year, Com-
rades, a very Happy New Year!"'

It is, however, to be obsei-ved that since that
boastful editorial was written, there have been
only negligible additions to what Izvestia called
"the camp of democracy and socialism." Tibet
was taken over by the Chinese Communists; and
Vietnam was infiltrated from North to South by
Communism. But the Communist elements have
been eradicated from the South of Vietnam where
the Eepublic of Vietnam seems firmly established,
even though the North is dominated by the so-
called "People's Republic.'' Broadly speaking,
the collective measures taken by the free nations
have served to check the onrush of Communism
which was foreseen by Izvestia on January 1, 1950.
And in Guatemala, Iran and Austria, Soviet Com-
munist power lias been largely eradicated.

Part IV deals with "What Needs To Be Done."
Some of this has been done, and the fact that it
has been done has preserved freedom in much of
the world and gained it in parts of the world.
World organization has to some extent been de-
veloped as advocated in Chapter Sixteen. The
United Nations has greatly gained in universality,
the membersliip being now 81.

In the first edition of War or Peace, I suggested
the desirability of developing some system of
weighted voting. The subsequent growth in
membership only serves to accentuate the inade-
quacy of the voting methods, both in the Assembly
and the Security Council. In the circumstances,
reconsideration of voting rights has become even
more needed.

The General Assembly has agreed in principle
to the idea of convening a Charter Eeview Con-
ference, as urged in Chapter Sixteen, but the ac-
tual holding of that conference remains in doubt.

It remains my conviction that a Charter Review
Conference will serve a useful purpose. The
world climate, at the time the conference is con-
vened, may permit formal amendments to bring
the Charter more in line with the needs of the

atomic age. In any event it will be helpful to
examine the progress the United Nations has made
and determine how it might be developed into a
more ell'ective instrumentality for world peace.

In Chapter Sixteen reference is made to the pos-
sibility of tlie Communist Government of Cliina
being admitted to the United Nations in order to
achieve greater "universality." It is pointed out,
however, that "A regime that claims to have be-
come the government of a country through civil
war should not be recognized until it has been
tested over a reasonable period of time."

This testing has indicated the ability, so far,
of the Communist regime to maintain itself in
power, althougli by ruthless, police-state methods.
However, it is equally demonstrated that that
regime does not possess the qualities which en-
title it to speak for China in the United Nations,
either in the Assembly or, much less, in the
Security Council, which is empowered by all the
members to have "the primary responsibility for
the maintenance of international peace and
security."

Since War or Peace was written, there have
occurred a number of significant actions by the
Chine-se Communist regime. It participated in
the armed aggression against Korea. The United
Nations has specifically condemned the Chinese
Commmiist regime on tliis account, and has called
for economic sanctions against that regime. This
Assembly action has not, at this writing, been
revoked. The Cliinese Communist regime remains
in military possession of the northern part of
Korea in defiance of United Nations action. It has
forcibly subjugated Tibet. It actively promoted
the Indochina War. It threatened to take Taiwan
by force and has declined to renounce the use of
force in this area in accordance with the Charter
Principle calling upon all members to refrain from
the use of force other than in accordance with the
Principles of the Charter. It encroached, with
its armed forces, upon Burma. It violated the
Korean Armistice by holding in captivity military
personnel of the United Nations; and in violation
of its own formal assurances, it has held in prison
United States civilians.

So long as the United Nations Charter applies
a qualitative test to participation in the United
Nations (See Articles 4, 5, and 6), and so long
as the Chinese Communist regime shows the char-
acteristics which have been described, it ought not

Apri] 15, 1957

603

to be given representation in the United Nations.

In conclusion, I would reemphasize the basic
thesis of War or Peace that peace will only be won
if there is constant effort to win it. Any relaxation
in this effort brings with it peril.

Quincy Wright, in his Sttuli/ of War, lists 278
wars fought between 1480 and 1941. This is an
average of 3 wars every 5 years. Several of these
wars, including World War II, were fought after
the League of Nations was formed and after the
Pact of Paris had pledged all the nations to abolish
war. Also several wars have been fought since
the United Nations was formed in 1945. These
include the Korean War, the Indochina War, and
the Israeli-Arab wars. There have also been the
military acts of Britain and France in Egypt.
Wars are today a threatening possibility in several
parts of the world.

The fact is that war will be an ever present
danger until there are better developed institu-
tions for peace, such as an adequate body of inter-
national law, an international police force, and a
reduction of national armaments. Today we live,
and I fear for long shall live, under the shadow
of war. Only if we are vividly conscious of this
fact will we make the exertions needed to prevent
war.

Let us recognize that war is not prevented
merely by hating war and loving peace. Since
the beginning, the peoples of the world have
hated war and longed for peace. But that has not
gained them peace. Even a sincere effort like the
Pact of Paris showed the futility of attempting
to abolish war without creating adequate and
effective compensating institutions to replace it.

The fact is that love of peace, by itself, has never
been sufficient to deter war.

One of the great advances of our time is recog-
nition that one of the ways to prevent war is to
deter it by having the will and the capacity to
use force to punish an aggressor. This involves
an effort, within the society of nations, to apply
the principle used to deter violence within a com-
munity. There, laws are adopted which define
crimes and their punishment. A police force is

established, and a judicial system. Thus there
is created a powerful deterrent to crimes of vio
lence. This principle of deterrence does not op
erate 100 percent even in the best ordered com-
munities. But the principle is conceded to be
effective, and it can usefully be extended into the
society of nations. That, as we have seen, has
actually occurred in an impressive measure.

Another aspect of the problem is that there can
never, in the long run, be real peace unless there
is justice and law. Even as I write there are
grave injustices such as the servitude of the Soviet
satellites and the division of Germany, Korea and
Vietnam. But even if these injustices could be
eradicated, the resultant condition would not be
one to be perpetuated forever. Change is the
law of life. New conditions are constantly aris-
ing which call for change lest there be injustice.
Such injustices tend ultimately to lead to resort
to force unless other means of change exist.

Those who love and want peace must recognize
that unless they exert themselves as vigorously
for peace as they do for victory, and as vigorously
for justice as they do for peace, they are not apt
to have either peace or justice. Peace is a coin
which has two sides. One side is the renunciation
of force, the other side is the according of justice.
Peace and justice are inseparable. This is recog-
nized by Article 1 of the United Nations Charter.

The task of winning peace and its necessary
component, justice, is one which demands our fin-
est effort. There must be a contribution from
every nation, as we strive to institutionalize peace.
Peace also depends on the effort of individuals as
they help to mold their nation's j^olicies and as
they may themselves directly contribute to one
or more of the many aspects of international
endeavor.

There has been, heretofore, the lack of sus-
tained and sacrificial individual and national ef-
forts needed to save the world from war. Surely
that is a lack which ought now to be made good,
as war becomes a catastrophe too awful to be
contemplated.

John Fostkr Dctxes

604

Department of State Bulletin

The Soviet-Occupied Zone of Germany: A Case Study in Communist Control

hy Eleanor Dulles

Special AssisUx/nt to the Director, Office of German Afftdi'fi

Education with whicli you as a group are con-
cerned is in considerable measure the formulat-
ing of significant questions and then the attempt
to find answere. It is concerned with the manner
in which past experience can aflect the nature of
man and his actions. There are presmned to be
goals toward which the human race is pressing.

One of our main goals is seen in our present
struggle to assure the largest possible degree of
freedom for the development of man's highest
potential. In all our efforts directed to this end
we are inevitably concerned with those who are
in bondage, partial or complete. We must from
time to time appraise our situation and recognize
those important questions which relate to our
programs and to Soviet methods of controlling
subject peoples.

Moscow, with the announced intention of ex-
tending the borders of international communism,
has ajiparently developed its capabilities to a
high degree but has reached discernible limits
which will set the boundaries of its future effort.
It is useful to ascertain not only how and where
they have extended their power but also where
their progress is checked. One such line of fail-
ure and area of defeat has been found already
in Germany. Here success has been stopped far
short of the Kremlin's goal, and failure at a num-
ber of points is e\ndent. The major aspect of its
gams and losses in tliis important countiy merit
consideration at this time when Gemian issues
are recognized as of primary importance.

^Address made before the Buffalo Federation of
■Women's Clubs at Buffalo, N.Y., on Mar. 27 (press release
174 dated Mar. 26).

Three questions relating to Soviet control, which
will affect not only the fate of Germany but of
the entire world, are very much on our minds
these days. They are complementary aspects of
Moscow's capacity to manage the peoples and
territories which they wish to hold in their Com-
mimist empire. One is their ability to develop
a unity and cohesion between different nations
and different races. A second is their capacity
to industrialize and exploit the economic poten-
tial of the territories they dominate at a pace com-
parable to expansion in the free world. The third
is their ability to develop tlu'ough training, edu-
cation, and indoctrination the human resources
of the millions under their rule.

It is especially interesting to watch their per-
formance in Germany, where the line of their con-
trol cuts the country into two widely different
areas. In the West their failure to gain influence
or to develop exchanges of goods and ideas has
been conspicuous. In the East Zone of occupa-
tion the matter is more complex and warrants
careful examination.

At the present time no final answer can be
given as to Soviet accomplishments and defeats
in East Germany. It is evident, however, that
the consequences of Soviet action there have had
a profound influence not only on the Germans
but also on others throughout the world. The
unwillingness of the people to be absorbed into
the Connnunist system is impressive. This is of
special significance after the recent events in Po-
land and Hungary. The limits to Soviet effec-
tiveness in Germany are noteworthy. In respect
to the questions we are considering, the balance
between the political, economic, and psychological

April 15, 1957

605

gains and losses suggests the possibility of Soviet
failure to hold their present alarming farflung
power here or elsewhere. A firm belief now that
the Soviet-occupied zone will sometime be free
can strengthen understanding and action.

The judgment of the degree of Soviet strength
and weakness and the probable duration of their
rule, which we are considering here, would clearly
differ from counti7 to country. Generalizations
to apply to all of them are not justified in the
light of the wide variation to be found in differ-
ent cases. The example of East Germany derives
its special interest not only because of its peculiar
importance in Western strategy but also because
of the large volume of information which is avail-
able to us and that throws light on Soviet be-
havior eveiywhere. It has a direct bearing not
only on the solution of German problems but on
world security problems.

Crucial Role of Berlin

In strengthening of resistance and in its sources
of information the city of Berlin continues to
play a crucial role. The zone, a large and impor-
tant territory with 17 million Germans now more
than a decade under Soviet domination, is to some
extent open to study and inspection. More facts
are available from the East in and through Ber-
lin and are subject to check for their validity than
from other Communist-ruled areas. The varied
means of communication, the travel back and
forth, and the interchange of letters and personal
contacts of all types are gi-eater in volume and
significance than for any other European satellite.

Here, in the center of the zone, the direct con-
tacts between people in the West and in the East
affect practically every resident of the Soviet-
occupied area of Germany. More than 3 million
persons and perhaps more than 5 million come to
West Berlin and to West Germany every year.
In some months the estimates of visitors have
been in excess of 700,000. Some of the visits are
short — people coming to West Berlin for a look at
the industrial fair, for the annual agricultural
show held during the Green Week, for the cul-
tural or film festivals. Others are longer visits
to relatives and friends and visits by students
and businessmen. Some come as strangers seek-
ing new friends and new ways to learn of the
West.

The results of these visits to Berlin and the

Federal Republic, and also of thousands of trips
from the West to the East, are a considerable mass
of information, many impressions and reports of
events and policies. For example, when statistics
of agricultural production are published, they
can be tested against common knowledge as to
the potato harvest, grain yield, crop conditions,
and food rationing. In this area, perhaps better
than anywhere else, the Iron Curtain is only an
open grill — the view of what is going on is thei'e
for all to see.

Because we can learn much from this, we are
impelled to examine the facts and appraise ihe
nature of Soviet management and control. The
results of this study can contribute in a significant
manner to the understanding of where the Soviets
stand in relation to the satellites and what direc-
tions they may decide to take in the future. The
conclusions reached may not be encouraging, but
at least they can help to outline the course of
future action for the West. In any case, to the
extent that they approximate a true appraisal,
such a review is bound to be useful.

Although for political and administrative pur-
poses East Berlin is incorporated into the zone, it
has special problems and characteristics. Since
it is still part of the city, half slave and half free,
it places in sharp contrast Soviet management
and control. This situation must be considered
separately from the zone.

The city. East and West, technically speaking
is still a four-power occupied area. West Berlin
is not a part of the Federal Republic in a legal
sense although psychologically and economically
it is almost like an eleventh Land or pi-ovince of
the western sovereign state of Germany.

In the Pankow district of East Berlin, closely
integrated with East Germany, is the seat of the
puppet government, a government called by the
Soviets free of their control. Actually, it is
rigidly held under Russian armed force through
Communist German agents. It is separated from
West Berlin by only a thin line of occasional bor-
der watchei-s and a few large signs and notices
indicating changes in jurisdiction.

In spite of the many close relations between the
different parts of the city, the political differences
as one crosses the narrow line of demarcation are
as great as those between Hungary and Austria.
Over this 37-mile sector border across the town
l)ass as many as 100,000 persons each day. Few

606

Department of Stale Bulletin

ai'e stopped or questioned. Approximately 45,000
are regular workers, border crossers who live in
one political area and work in another, going
freely to and fro. Only occasionally are they
questioned — usually the reason is that they carry
a package or brief case. In rare instances they
are searched by the Eastern police for Western
deutschemarks, the money which they are not sup-
posed to have on their persons. More often the
large numbers of students, casual visitors, mer-
chants, relatives of West or East Berliners, visi-
tors to concerts and museums, moviegoers or
persons seeking to buy a pound of butter or a pair
of shoes in the West move unhindered. In the
case of those going to the East there are also no
barriers. There are visitors to relatives or friends
or even occasionally persons in search of antiques
or special objects like cameras offered for sale in
the East.

There is a sense of almost physical pressure of
one system on the other. Soviet prestige suffers
from this traffic, but it would suH'er also if it were
stopped by force.

Contrast Between East and West

As a result of this movement back and forth,
the contrast between East and West and the great
difference in the standard of living is always evi-
dent to everyone. Moreover, the presence of the
Allied occupation forces and their support of the
city is visible and daily apparent. This makes
it virtually impossible for the Soviets to take the
risk of severing the city. Berlin cannot be ab-
sorbed into the bloc.

In spite of the ring of Communist might around
the East sector of Berlin there is no sense of
cohesion with the Kremlin. The rejection of its
occupiers in the minds of the people is almost com-
plete. The attempts of Moscow to shift respon-
sibility and prestige to the Pankow government
installed in East Berlin, surrounded and protected
as it is by the 22 military divisions stationed in
the iimnediately adjacent areas, has not been con-
vincing to the Germans anywhere, either in the
East or in the W^est. One can conclude that their
administration of the East sector of the city and
its economic and political potential has been only
superficially successful.

It is reliably reported by the foremost German
experts on the subject that the puppets of the

Soviets holding their brief authority by bribes,
threats, and blood money are more hated bj' the
Germans than are the Russians, who are acting on
the basis of a more recognizable set of power ob-
jectives. Thus under present conditions normal
relations are not possible between the East Ger-
man instruments of the Soviet r>der and their
oppressed subjects. Similarly, the East German
authorities in Berlin have little official contact
with the Western World.

The principal financial advantages to the Rus-
sians of holding East Berlin are negligible. In
the light of conditions in East Berlin one can
question whether economic resources of the city
have been used efficiently or benefit significantly
the economic interest of the East Zone. The ste-
rility of the Soviet occupation is evident, ^^(lually
apparent is the significance for Communist aims
of denjnng the city to the West. Even though it
can be assumed that the cost of holding the Soviet
sector by force since the time of the blockade and
the split of the city outweighs any direct benefit
derived from its production or trade, the purely
strategic and prestige reasons remain predomi-
nant, but the performance of the Soviets has not
been impressive.

The residents of the eastern part of the city are
in a peculiar position. They have the advantages
of constant refreslmient in the western sector of
the city and opportunities to buy the many essen-
tial conmiodities, including food and clothing.
While living under the Communist regime they
gain the stimulus of the free air and the dynamic
activity of the western part of the city, busily
restoring its physical plant and its cultural life.
Thus they are not totally subject to the rule or
the living standards of the satellites or of Russia.
They can stay on from day to day knowing escape
is always jjossible.

Berlin is thus a major reason for and an out-
standing example of the failure to integrate East
Germany into the Soviet bloc. The city makes this
part of Soviet conquest and control different from
other areas but in some ways even more signifi-
cant. The management of the zone demonstrates,
for example, the oppressive nature of the effort
10 bring conditions into line with Moscow. It
shows how much force is needed to keep the reins
tight in a sitiuition where there ai-e steady and
dependable channels of communication when peo-
ple under one system remain in close contact with
people under vastly different political and philo-

April 15, J 957

607

sophic systems. It is somewhat paradoxical that
the veiy conditions that increase the resistance
potential also lessen the danger of violent ex-
plosion. This danger is generally conceded to be
less than in several of the more enclosed areas.
This is the current forecast even though the Ger-
man spirit of resistance in the East is constantly
nourished and clearly manifest in many vrays.

Exploitation of Potential Assets

Perhaps more rewarding, however, is the at-
tempt to examine the wider extent and the naore
comprehensive efforts of the Communists in the
considerable territory of 41,000 square miles with
the 17 million people who live in the East Zone.
Here there are substantial assets to exploit. Here
are the large uranium deposits. These are now
being used exclusively for the benefit of the So-
viet atomic program. Here are the substantial
soft -coal mines, henry and light industries, uni-
versities, and highly urbanized areas of Leipzig,
Dresden, Weimar, Magdeburg, and other centers.
Here is a tradition of effective management and
productive labor. The question is, how have the
Soviets used these potential assets and to what
extent have East Zone resources helped them in
their objectives?

From the point of view of political interna-
tional relationships little has been accomplished.
They have built up an uneasy and limited set of
contacts with the bloc and a few nonsatellite na-
tions. The few links between the Commimist-
created East German government and nations
outside the Soviet bloc are uncertain, insecure,
and relatively unproductive. There is little like-
lihood that the concerted drive to increase the
number and scope of trade and other treaties since
the Soviet declaration of East German "inde-
pendence" on September 20, 1955, will have any
real success. A major reason for the inability of
the Communist regime in East Germany to de-
velop diplomatic relations has been the vigilance
and strength of the Federal Republic in Bonn.

For one thing the zone has now too little to
offer in the way of exports. For another there
are many apparent pitfalls in the waj' of alli-
ances between a puppet government and free na-
tions. As long as the Communists use force to
maintain their position in FaisI Germany, those
who make ties with their chosen instruments of
Commimist policy will be anxious for fear the

authorities will be changed or liquidated and the
agreements collapse. The strong democratic na-
tions of the non-Commimist world are bound to
hesitate before making pacts with those who are
not able to act independently of Moscow.

If trade treaties on an ad hoc basis are con-
cluded, as the}' have been in nine cases, they will
be almost inevitably on the basis of short-run
economic considerations with an eye always to
the uncertain future. If the trade is not produc-
tive, there will be little reason to attempt to work
out mutual adjustments. Agreements based on
the expectation of long and dependable inter-
change cannot be reached easily where there is
no tradition and no political philosophy to indi-
cate a future interchange of goods on a basis of
sound reciprocity.

"Where uncertainty exists as to the nature of
the leadei-ship of future governments and the
status of relations with Moscow, the links can-
not bind closely and the relationships are fragile.
Thus the nine agreements as of early 1957 between
the German Democratic Republic and nonsatellite
governments constitute, both in scope and num-
ber, a feeble accomplishment in the light of the
effort and intention.

Lag of East Zone Economy

In the case of East Germany the economic ex-
ploitation by the Soviets falls far short of their
plans and leaves the people at a lower standard
of living than any other comparably industrial-
ized area. Even by their own reports the 5-yeat
goals have not been reached. The Soviets have
not demonstrated there any significant capacity
to exploit the resources by force or to take advan-
tage of the opportunities by a doctrine and a
method acceptable to the workei-s and managers
in the zone. There is no sign that the Conmiu-
nist appi'oach has led to productivity or inven-
tiveness.

The Soviet rulers have had 12 years in which
to develop momentum. Capital-goods production
is behind scliedule. Consumer goods are in short
supply. There one finds clearly another indica-
tion of the difficulties which face the Kremlin in
managing alien lands.

The reconstruction of the East German econ-
omy after the war would not have been easy in
any case. It was made more difficult because at
the outset there were the crippling removals of

608

Department of Slate Bulletin

equipment and raw materials by Russia. Fac-
tories were stripped of machinery. Rolling stock,
trucks, and capital assets of a wide variety of
types were taken from the country. The trains
moving eastward were loaded witli machine tools
and heavy equipment. Electrical machinery and
other valuable as.sets were taken away which were
to be sorely missed when the time for rebuilding
the economy came. Estimates of the amount of
material wealth removed indicate that it was in
excess of 15 billion dollars' worth at the time it
was taken away. Little is known of the manner
in which equipment was reinstalled or of the use
made of those capital instruments by the Rus-
sians. Much can be said about the damage these
removals caused to the East German economy.

The more significant, if perhaps not so clearly
apparent, reason for the lag of the East Zone econ-
omy behind comparable areas in general and be-
hind West Germany in particular is the lack of
contractual arrangements. Under this system
there is no effective business responsibility or mo-
tive to produce. Here we see an economy which
has reached an advanced state of professional pro-
ficiency, with a highly skilled labor force and rea-
sonably good natural resources, forced ruthlessly
into the Communist mold.

Approximately 70 percent of the industry is
said to have been conununized already. A much
smaller segment of the agricultural land is in the
so-called cooperatives. New private ventures are
virtually ruled out. All the industry which re-
mains outside state control is starved for the lack
of capital and is in a disadvantageous position as
regards maintenance and access to adequate labor
supply.

The question arises naturally in the minds of
workers and supervisors of labor — for whom are
they working? The answer is bound to be "for
the Soviets." Cooperative effort to build up state
enterprises could only be exi^ected to stimulate
vigorous effort on the part of labor and capital if
the authorities themselves have goals which are
acceptable. In the lack of such incentives and
loyalties, productive effort is balanced constantly
against the immediate cost and man is apt to limit
his effort to work "for bread alone."

This sense of futility has in fact prevailed
throughout the zone. As far as one can discern,
Soviet armed force and dire need of the people
are the bases for economic effort. Few of the
usual motives appear to be operative. The short-

run considerations which determine the kind of
work and the amount of energy that goes into
the assigned tasks are those which relate to sur-
vival and not those which develop from the hope
of a large-scale and impressive building of a sound
and dependable economic system.

Refugees "Vote With Their Feet"

The most striking evidence of the failure of the
regime to give the people the elemental satisfac-
tions which the Communists have continuously
promised to the masses has been the tmending
stream of refugees from the Soviet-occupied ter-
ritory to the AVest. The steady flow of workers
and professional men. of farmers and laborers,
from the workshops, the farms, and the mines of
East Germany is the kind of public-opinion poll
that no one can ignore. It has been said that
close to 2 million refugees have voted "with their
feet." This large number of voluntary exiles
have staked their hopes and their lives on the
belief that they can live and work according to
their standards and principles only in the West.
They have rejected the methods and the aims of
the Communist regime which they have come to
know so well.

It is not easy to be a refugee. Almost every
man of feeling is attached to the place which he
calls home. The very shape of the hills, the smell
of the meadows and the woods, the curve of the
rivers, which he has known from his earliest cliild-
hood, are part of his well-loved birthright. To
leave all this for unknown cities and an mifamiliar
countryside, to be separated from liis neighbors
and his friends, and to seek new dwellings and
new employment is not easy. One caimot take
lightly the meaning of this large-scale and con-
tinuing migration.

Wliile the Kremlin may not understand the
meaning of this migiation, for those who hear the
story at the various Berlin and Federal Republic
reception centers there is an unforgettable im-
pression of the profound disappointment in the
cultural life and conditions of work which they
have fomid in the last 12 years. It is not so much
the lack of food and clothing, though conditions
in this respect still leave much to be desired, but
more the climate of hmnan relations and pressures
applied in all their work, the lack of choice, the
inability to seek one's own place in the system
and shape one's life in a spirit of hope and free-
dom which lead to despair. These motives and

April IS, 1957

4218-i9— 57 3

609

the protests against the Communist regime indi-
cate the core of the Communist dilemma.

Time factors plague the Communists in their
administration of the Soviet-occupied zone of
Germany. The improvement so far achieved in
economic affairs has been much slower than else-
where in Europe. The political developments in
the zone have failed to establish the authorities
there on a firm basis. The cringing dependence
on the Soviet authorities of all the high officials
and their inability to speak except as instructed
have been evident not only to all Germans but
also to the world at large. INIeanwhile, the re-
jection of Russian comnuniism has been so com-
plete that there is danger of serious depopulation.
Already almost 1.5 percent of the population has
left as voluntary expatriates from their homes.
The labor shortage is severe and hampers eco-
nomic progress.

Thus the three questions which are significant
indications of the Soviets' capacity to rule the
area can be given tentative answers. The slow
gains at some points are more than offset by
losses at others which hamper improvements in
the standard of living and prevent East German
acceptance of tiie i-egime. The individual de-
prived of his legal and political rights is fearful,
uncooperative, and hostile to the occupying
powers. If the 400,000 soldiers were withdrawn,
the Communist facade would collapse overnight.
The area is stanchly German and relatively un-
affected by alien doctrines to which it has been
exposed. Russia has developed no alliance here,
but it has added to the number of potential
enemies at a cost which is likely to increase in
goods and effort if they are to keep the potential
resistance under control.

There are time factors which disturb the West-
ern allies as they consider conditions in the East
Zone. There is inevitably some erosion of the
spirit as pressure on the individual continues from
month to month. There is bound to be disillu-
sionment over the inability of the Federal Repub-
lic and the "Western World to win their freedom.
Institutions, even though unpopular and oppres-
sive, have a tendency to become a part of the
day-to-day fabi-ic.

Thus, in some measure even the failures of the
Russians in this area complicate the problems for
tiie Western World. The Communist dilemma
of more oppression or costly aid is to some extent

paralleled by the urgent problems of the free
world. Our efforts to manifest our underetand-
ing, aid to visitors from the East, assistance to
refugees, are of the greatest importance.

Above all, the development of the North At-
lantic Treaty alliance and closer European eco-
nomic cooperation through the common market
and EuBATOM can create the conditions of strength
from which eventual German reunification will
come. The moment of opportunity lies ahead.
It will come the sooner because the Russians know
that those who live in the East Zone have not ac-
cepted their system. It is the more certain be-
cause of the millions who, despite almost over-
whelming inducement, have kept the faith and
stood firm. "Wlio can say what would be the cir-
cumstances in East Germany in ^0 years if the
Russians were to remain^ It would be a bold
and not a wise man who would venture to predict
the results of long-continued occupation. As of
the present, however, there is no I'ecord of suc-
cess. No achievement in the economic field, no
winning over of the people, no brilliant diplo-
matic accomplishments can encourage the Krem-
lin in its shaping of future policy toward
Germany.

U.S. Asks Dominican Government
To Reopen Gerald Murphy Case

DEPARTMENT ANNOUNCEMENT

The Department of State announced on March
16 (press release 150) that it had instructed the
Embassy at Ciudad Trujiilo to deliver a note to
the Dominican Government in reply to a communi-
cation from that Government submitting various
documents and other evidence concerning the dis-
appearance in December 1956, in the Dominic4\n
Republic, of Gerald I^ester Murphy, a U.S. civil-
ian aviator.'

The documents submitted with the Dominican
note included an official report by the Attorney
(General of the Dominican Republic that Mr. Mur-
phy had been killed by Octavio de la Maza, a

' For background, see Bulletin of Feb. 11, 1957, p. 221,
and Mar. 4, 1957, p. 349.

610

Department of State Bulletin

Dominican airline pilot. A suicide note, attrib-
uted to Mr. de la Maza and containing a state-
ment that he had killed himself in remorse over
the death of Mr. Murphy, was included in the
Dominican documentation.

TEXT OF U.S. NOTE

No. 382

The Embassy of the United States of America
presents its compliments to the Department of
State for Foreign Affairs and Worsliip and has
the honor to acknowledge its Note No. 3.'i51 of
February 9, 1957 transmitting the following docu-
ments in connection with the disajipearance of
Gerald Lester Murphy :

1. Report by the Attorney General of the
Dominican Republic.

2. Photostats of the suicide note attributed to
Octavio de la Maza accompanied by photo-
stats of known specimens of his handwi-iting.

3. Analysis of de la Maza suicide note by Pro-
fessor Manuel Ferrandis Torres of the Uni-
versity of Madrid concluding that the de la
Maza suicide note is authentic.

4. Final disposition of the Murphy case by the
examining magistrate concluding that he was
murdered by de la Maza and must be pre-
sumed dead.

5. Final disposition of the de la Maza case by
the examining magistrate concluding that he
committed suicide after liaving murdered
Murphy.

6. Interrogations by the examining magistrate
in connection with the Murphy and de la
Maza cases.

7. Miscellaneous reports related to the Murphy
and de la Maza cases inchiding medico-legal
and autopsy repoi'ts on de la Maza.

From examination of these documents and
other evidence, this Government has concluded
that if the specimens of handwriting submitted
by the Dominican authorities as being of de la
Maza are actually his, then the suicide note was
not written by de la Maza.

Furthermore, this examination reveals a con-
tradiction between the report of the Dominican
Attorney General which states that Murphy's
"political influence" in the Dominican Republic

was tlie "object of investigation without anything
serious being produced to justify it" and other
available information. Our investigations indi-
cate that Murphy was well acquainted with high
Dominican officials, among them the late Colonel
Salvador Cobiiin and Brig. General Arturo K
Espaillat.

It would also appear that Murphy's income
while in the Dominican Republic must not have
been limited to the $350 per month salary which
the Dominican Attorney General states he earned
as a co-jjilot for the Dominican Aviation Com-
pany (Cda). Our investigations have confirmed
statements made by several American Cd.\ pilots
to the Dominican authorities that Murphy, in the
words of one of them, "had more money than the
rest of us" and that he owned two cars, one in
Miami and one in Ciudad Trujillo. As far as is
known. Murphy had no income of record in the
United States during the period of his employ-
ment in the Dominican Republic. The Govern-
ment of the United States is gravely concerned
about the disappearance of one of its citizens in
the Dominican Republic. It assumes that this
concern is shared by the Dominican Govermnent.

In view of the foi'egoing observations and other
evidence which it has developed within its do-
mestic jurisdiction, the Government of the United
States considers the case of Gerald Lester Mui'phy
as unsolved. The Dominican Government is ur-
gently requested to reopen and vigorously pursue
its investigation of the disappearance of this citi-
zen of tlie United States.

The Embassy of the United States of America
avails itself of this opportunity to renew to the
Department of State for Foreign Affairs and
Worship the assurances of its highest considera-
tion.

Ciudad Trujillo, D.R.,
March 16, 1957.

Polish Coal Mining Officials
Visit United States

Press release 165 dated March 21

On March 22 a delegation of eight Polish coal
mining officials will arrive in the United States
for a 3-week tour of principal mining facilities
in the coal-producing States east of the Missis-

Apn\ 15, 1957

611

sippi. The tour has been arranged and will be
conducted by the National Coal Association.

The Polish visit is in accordance with an agree-
ment between the Department of State and the

Polish Embassy for the exchange of delegations
of coal mining experts. It is anticipated that a
reciprocal U.S. delegation will visit Poland later
this year.

International Cooperation in Climatology

SECOND SESSION OF COMMISSION FOR CLIMATOLOGY
OF WORLD METEOROLOGICAL ORGANIZATION

l)y Helmvt E. Landsherg

From January 14 to 25, 1957, the Government
of the United States acted as host to the Commis-
sion for Climatology (CCl) of the World
Meteorological Organization (Wmo) at Washing-
ton, D.C. The Wmo is one of the specialized
agencies of the United Nations. Much of its work
is accomplished by technical conmaissions, of which
CCl is one.

The history of formal international cooperation
in climatology goes back to 1872, when the Inter-
national Meteorological Coirmiittee, an early
predecessor of Wmo, met at Leipzig and placed on
its agenda several items dealing with standard-
ization of climatic practices. In 1929 the
International Meteorological Organization, the
immediate antecedent of Wmo, created the Com-
mission for Climatology, which has met at regular
intervals except for the World War II interrup-
tion. This was its second session since the Wmo
took over the functions of these earlier groups.

For the past 7 years the Commission has had, as
president, C. W. Thornthwaite of the United
States, a world-renowned research worker in the

• Dr. Landsherg., author of the above article,
is Director of the Office of Climatology of
the U.S. Weather Bureau. He served as
principal U.S. delegate at the second session
of the WMO Commission for Climatology.

field of climatology and director of the Laboratory
of Climatology of the Drexel Institute of Tech-
nology, Centerton, N.J. Under his chairmanship
the first plenary session of the current meeting
was addressed by Francis O. Wilcox, Assistant
Secretary of State for International Organization
Affairs. Mr. Wilcox welcomed the delegates to
Washmgton and stressed the importance of the
work the specialized United Nations agencies are
doing for the promotion of constructive inter-
national cooperation and for the creation of better
standards of living everywhere.' Further wel-
come was extended by F. W. Eeichelderfer, Chief
of the U.S. Weather Bureau and fonner president
of the Wmo. Dr. Eeichelderfer, who is the per-
manent U.S. representative to the Wmo and a
member of its Executive Committee, called at-
tention to some of the important tasks before
the Commission, among which are the problems of
water supplies, drought, and long-range climatic
trends.

Delegates and Activities at Second Session

The following 24 member nations of Wmo sent
delegates to the second session :

Australia

Belgium

Brazil

Byelorussian S.S.R.

Canada

Cuba

' For text of Mr. Wilcox's remarks, see Bulletin of
Feb. 4, 1957, p. 197.

612

Department of State BuUetin

Dominican Republic Poland

France Sweden
Germany, Federal Republic Thailand

of Ukrainian S.S.R.

Ireland Union of Soviet Socialist
Israel Republics

Korea United Kingdom

Mexico United States

Netherlands Uruguay

Norway

Venezuela

Two nonmember nations, Albania and Liberia,
sent observers.

There were also observers from the Interna-
tional Civil Aviation Organization (Icao), the
Food and Agriculture Organization (Fag), the
World Health Organization (Who), the United
Nations Educational, Scientific and Cultural Or-
ganization (Unesco) and from six other inter-
national technical organizations. A group of 11
invited experts, associated with universities and
research institutions, joined the deliberations on
technical problems.

The official U.S. delegation was composed of
H. E. Landsberg and H. C. S. Thom of the U.S.
Weather Bureau and Woodrow C. Jacobs of the
Air Weather Service, U.S. Air Force. They were
aided by nine advisers from the Office of Clima-
tology of the Weather Bureau, the Directorate of
Climatology of the Air Weather Service, and the
Aerology Branch of the Navy.- Secretariat serv-
ices were handled by the Office of International
Conferences of the Department of State. The
Wmo secretariat was represented by K. Langlo
and O. M. Ashford from the headquarters of the
organization at Geneva. Their technical assist-
ance throughout the conference contributed
greatly to the success of the session.

Most of the woric of the Commission was
handled in two committees. The first committee
dealt with climatological regulations, require-
ments, rules, and practices, while the second con-
cerned itself with research problems and applied
climatology. A lengthy agenda of 6 administra-
tive and 15 major technical items was handled.
The heavy work schedule, which often required
late working hours, was relieved by an interesting
program of social and scientific events. Among
the technical attractions was a tour of Weather
Bureau facilities in the Washington, D.C., area,
including a visit to the weather center in Suit-

^ For a Department announcement of the U.S. delegation
to the second session, see ihid., Jan. 28, 1957, p. 153.

land, Md., where a large electronic computer has
become one of the great modern aids in weather
forecasting. An exliibit of weather instrmnents
and equipment which had been arranged in the
lobby of the U.S. Department of Commerce build-
ing formed another feature of interest to the
delegates.

The president of the Commission had arranged
for six scientific lectures by delegates and invited
experts. These were presented during two after-
noon sessions and dealt with some of the latest
technical advances and problems. Many of the
delegates also attended an evening meeting of the
District of Columbia Branch of the American
Meteorological Society and the national meeting
of this society at New York City after the close
of the session. In addition, the Weather Bureau
arranged for an inspection trip to the National
AVeather Records Center in Asheville, N.C., after
the session. This is the greatest depository and
processing center of climatological data in the
world, with a library comprising 300 million
weather observations. Twenty-two foreign dele-
gates spent 2 days inspecting this facility and its
newest electronic equipment.

Worldwide Inventory of Climatic Conditions

The final results of the meeting were contained
in 10 resolutions and 9 recommendations to the
Executive Committee of the Wmo. The primary
results, when implemented, will be moderniza-
tion and modification of international practices in
climatology. These will be of considerable practi-
cal benefit. Uniform procedures are a virtual
necessity in the mapi>ing of weather elements,
which obviously have no regard for national
boundaries. A worldwide effort toward an in-
ventory of the climatic conditions in the form of
a climatic atlas is also to be undertaken under a
unified system of standards. Such an atlas should
contribute significajotly to economic betterment
since temporarily or permanently adverse aspects
of climate underlie much of the world's trouble.
Floods, droughts, and hurricanes are among the
prime causes of human disaster. Adequate statis-
tics on these as well as the less frightening but
equally important elements of temperature and
rainfall have to be compiled. They are basic
material for agricultural planning, for major
projects of reforestation, and for irrigation and
hydroelectric schemes.

April IS, 1957

613

Of basic importance is a continuous -watch on
trends in the climatic elements, both from natural
and, perhaps, artificial causes. Among the last
are the possible climatic changes induced by large-
scale river basin developments. One of the ques-
tions before the Commission was whether such
changes might be adverse. It was the considered
opinion that such developments would have only
minor local effects and that these would probably
be beneficial rather than detrimental. In view
of the widespread international interest in such
questions, the Wmo secretariat was urged to pub-
lish a technical note for general information,
based on the experience of various member nations.

In recognition of the fact that water resources
are among the most critical problems confronting
many nations or areas, a number of discussions
centered around hydrological questions. In par-
ticular, the procedures to measure water income in
form of snow and water loss by evaporation came
under scrutiny. Recommended procedures re-
sulted in draft, chapters for the ''Guide to Clima-
tological Practices." This will be a book contain-
ing advice on the best techmques at present
available to climatologists. Considerable draft
material for this text was accumulated and re-
viewed during the session. The final drafting
and editing will be in the hands of a small working
group of the Commission.

The climate of the upper air, especially over the
oceans, is of vital interest to international air
traffic. Specifically, the frequency ot encounters
with hazards such as icing and severe turbulence
is of concern to every airline. Inflight weather
reports are regularly filed witli the meteorological
services, but there has been a need for statistical
studies to handle and analyze this infonnation.
These studies will be initiated under a recommen-
dation of the Commission.

Just before World War II a telecommunication
exchange of monthly temperature and rainfall
values was begun. It was thought that this infor-
mation, if collected on a worldwide scale, would
help long-range weather forecasting. After an
interruption by the war, this project was resumed
with the cooperation of many nations. Currently
the data thus gathered are published by the U.S.
Weather Bureau under Wmo sponsorship in a
bulletin entitled Monthly Climatic Data for the
World, which has proved to be of considerable
economic value. Such quastions as "Are frosts

damaging the Brazilian coffee crop?", "Is a
drought developing in Australia?", or "Did the
monsoon bring normal amounts of rainfall to
India?" can be readily answered. The present
session of the Commission reviewed the proce-
dures for both the radio messages and publication
of the data. A scheme for a better network of
stations was prepared, and a plea for univei'sal
cooperation was made. In view of the general
desire for this uniform collection of climatological
information, a further expansion of the scheme to
all member nations of the Wmo can now be
expected.

The exchange of views on scientific matters at
the session was particularly helpful. Latest de-
velopments in the various countries were reviewed.
Some of them were presented in the scientific
lectures which became part of the session's docu-
mentation and will therefore be available to all
member nations. Others were presented in the
form of national progress reports. These will be
condensed by (he secretariat of the Wmo into a
technical note.

Among the final actions of the Commission was
the election of officers for the next 4-year period.
Dr. Thornthwaite, who under the rules could not
be reelected, was succeeded as president by R. G.
Veryard of the United Kingdom. C. C. Boughner
of Canada was elected vice president.

Current U.N. Documents:
A Selected Bibliography

Economic and Social Council

Development of International Travel, Its Pre.sent Increas-
ing Voliune and Future Prospects. Addendum to the
note by the Secretary-General. B/2933/Add.3, January
17, 1957. 7 pp. mimeo.

Consideration of the Provisional Agenda for the Twenty-
Fourth Session. Note by the Secretary-General.
E/2949, January 18, 1957. 9 pp. mimeo.

Commission on Human Rights. Periodic Reports on Hu-
man Rights and Studies of Specific Rights or Groups
of Rights. Note by the Secretary-General. E/CN.4/-
7.'!4, January 24, 19,^7. 4 i)p. mimeo.

Commission on the Status of Women. Advisory Services
in the Field of Human Rights. Report by the Secretary-
General. E/CN.6/294, January 24, 1957. 4 pp. mimeo.

Commission on the Status of Women. Bride-Price, Polyg-
amy and Rights of the Mother with Respect to her
Children. E/CN.6/295, January 34, 1967. 47 pp.
mimeo.

Commission on the Status of Women. Practical Methods
for the Implementation of Ekjual Pay for Equal Work.
B/CN.6/296, January 24, 1957. 35 pp. mimeo.

614

Department of State Bulletin

statute of International Atomic Energy Agency Transmitted to Senate '

PRESIDENT'S MESSAGE OF TRANSMITTAL

The White House, March 21, 1957.

To the Seriate of the United States:

Witli a view to receiving the advice and consent
of tlie Senate to ratification, I am attaching liere-
with a certified copy of the Statute of the Inter-
national Atomic Energy Agency.- I also transmit
for the information of the Senate a report ad-
dressed to me by the Secretary of State in regard
to the statute, together with certain related papers.

When the Statute of the International Atomic
Energy Agency was open for signature at United
Nations Headquarters in New York for 3 months,
from October 26, 1956, to January 24, 1957, it was
signed in behalf of the United States of America
and by 79 other nations. It is the product of al-
most 3 years of negotiations, beginning with my
address to the United Nations on December 8,
1953.^ There I expressed the profound hope of
the American people, a hope shared by people
throughout the world, that means could be found
to harness the atom to the labors of peace.

Today, in the grim necessity of preserving the
peace, the free world must turn to the deadly
power of the atom as a guardian of freedom and
a prime deterrent to aggression. Yet the true
promise of the atom is not for destructive purposes
but for constructive purposes. And, in America,
M-e can already see in atomic energy an enormous
potential for human benefit : electric power, treat-
ment of disease, and extraordinary service to agi-i-
culture, industry, and science itself. And this is
but the beginning. There is every indication that
we can look forward to even greater values of
atomic energy in America.

' Keprinted from S. Exec. I, 8oth Cong., 1st sess.
' Not iirinted here ; for text, see Bxtixetin of Nov. 19.
195G, p. 820.

= IMd., Dec. 21, 1953, i>. 847.

Tlie peoples of other nations also see great hope
in the atom for the development of their economies
and advancement of their welfare. They devoutly
wisli for ways and means of directing the atom to
peaceful uses. There is widespread appreciation
of the role the United States has already played in
the great atoms-for-peace program to help many
of these nations start their own atomic energy
programs.

Now, in our proposal to the United Nations for
the establishment of an International Atomic En-
ergy iVgency, we have answered the basic desire
of many nations for an international body to which
all may belong — a body in which all may safely
pool their knowledge and skill for the advance-
ment of all; from which all may draw knowledge,
advice, and nuclear fuels to aid their individual
efforts in developing the atom for peaceful em-
ployment.

This promise of increased well-being for the
people of the world offered by the International
Atomic f^nergy Agency is a major purpose of our
proposal. Another is the extension of our fixed
and unending determination to open and widen
all possible avenues toward a just and enduring
world joeace. In promoting these purposes, the
International Atomic Energy Agency would pro-
vide a practical meeting place — a common gi'ound
of cooperative effort among nations. Thus,
through shared \\o\yQ and work, the world would
come to realize the innnense possibilities of the
atom for the benefit of all.

The statute and the Agency which it will estab-
lish hold promise of important progress in that
direction. They constitute both a practical ap-
proach and a symbol of all that people of good
will hope to see accomplished through the use of
atomic energy. They offer the luiderdeveloped
nations in particular an earlier availability of the
benefits flowing from the constructive uses of the
atom, and afford all countries the prospect of

April IS, 1957

615

mutually stimulated scientific advance dedicated
to the welfare of mankind.

To achieve the confidence essential to coopera-
tion among membei"s of the International Atomic
Energy Agency, great care has been exercised to
insure that fissionable material will be safe-
guarded to prevent its diversion to any military
purpose. A comprehensive safeguard system is
provided by the statute. This will apply to all
aspects of the Agency's activity involving nuclear
materials. A key part of this system is a plan
of thorough international inspection. The United
States will provide fissionable materials for
Agency projects only as this safeguard system is
put into effect. I am satisfied that the security of
the United States will not be endangered by ma-
terials made available to or through this Agency.
I should add that the United States is under no
obligation to disclose secret information to this
Agency.

Authority for directing the Agency will rest
primarily in a Board of Governors. The method
of choosing these Governors was considered with
particular care. The formula finally agreed upon
balances geographic considerations with the capac-
ity of the cooperating nations to supjily technical
or material support to agency projects. This
formula assures the protection of the interests of
America and the free world. There is also reason-
able assurance against entry into the Agency of
nations which are excluded from the United
Nations, and which were excluded from the Con-
ference and from Agency membership by over-
whelming vote on a number of occasions.

This statute is the work of many. It reflects the
experience of those concerned with our Nation's
efforts since World War II to relieve the burdens
of armament for all people. It is consistent with
the policies of our present Atomic Energy Act. It
has profited by the addition of suggestions from
bipartisan congressional hearings.

It is my firm belief that this statute, and the
International Atomic Energy Agency provided
by it, are in the present and future interest of our
country. They have my wholehearted support.
I urge early consent to the ratification of the
statute, so that the United States which proposed
the establishment of this new instrument of peace-
ful progress may be among the first to give it
final approval.

DwiGHT D. Eisenhower.

REPORT OF THE SECRETARY OF STATE

Department of State,
Washington., February 21, 1957.
The President,

The White House:

I have the honor to submit to you, with a view
to transmission to the Senate for advice and con-
sent to ratification, a certified copy of the Statute
of the International Atomic Energy Agency,
which was open for signature at United Nations
Headquarters in New York from October 26,
1956, to January 24, 1957, and during that period
was signed in behalf of the United States of
America and 79 other nations.

The purpose of this treaty is to establish an
International Atomic Energy Agency pursuant
to the atoms-for-peace proposal made by you in
your historic address before the General Assembly
of the United Nations on December 8, 1953. In
that address you outlined your plan for an inter-
national agency, to be established under the aegis
of the United Nations, with responsibility for find-
ing methods to apply atomic materials to the
abundant production of power and to the needs of
agriculture, medicine, and other peaceful pursuits
of mankind.

In the months following your proposal, discus-
sions were undertaken among those nations hav-
ing either developed resources of nuclear raw
materials or advanced atomic energy programs.
An eight-nation group, composed of representa-
tives of the United States, Australia, Belgium,
Canada, France, Portugal, the Union of South
Africa, and the United Kingdom, worked early in
1954 to prepare a first draft of a statute for the
proposed agency. The subject was thoroughly
debated at the Ninth General Assembly in 1954.
On December 4, 1954, the General Assembly of the
United Nations by unanimous vote endoi-sed the
proposal to create an International Atomic Energy
Agency.*

A report on the progress of the negotiation of
the statute was made to members of t\\& Joint Com-
mittee on Atomic Energy in July 1955 and appro-
priate revisions were made in the draft statute
on the basis of their comments.

On August 22, 1955, a draft statute ^ was cir-

* For text of the General Assembly resolution, see
ibid., Dec. 13, 1954, p. 919.
" For text, see ibid., Oct. 24, 1955, p. 666.

616

Department of State Bulletin

ciliated to get the views of all membei-s of the
United Nations or of the specialized agencies, a
total at that time of 84 states. The subject was
again debated at the Tenth General Assembly in
1955, and a resolution endorsing the efforts of the
negotiating group was unanimously adopted."

On February 27, 1956, the working gi-oup, now
expanded to 12 nations by the inclusion of Brazil,
Czechoslovakia, India, and the Union of Soviet
Socialist Republics, met in "Washington at the in-
vitation of the United States. This group worked
to revise the draft statute. It considered, and
often adopted, ideas and suggestions not only of
the members of the drafting group but of other
nations the world over from which comments had
been received. The resulting draft,' adopted on
April 18 by the working group reflected to a great
degree the balance of views of a large number of
states.

In June 1956 a further report on the progress
of negotiations was made to members of the Joint
Committee on Atomic Energy.

The document negotiated by the group of 12
nations was presented to the delegates of 81 na-
tions at the opening of the Conference on the
Statute of the International Atomic Energy
Agency, which convened at United Nations Head-
quarters in New York on September 20, 1956.
The United States delegation to that Conference
was under the chairmanship of Ambassador James
J. "Wadsworth, deputy representative of the
United States to the United Nations and United
States representative for International Atomic
Energy Agency Negotiations. It included con-
gressional advisers, designated by the President of
the Senate and the Speaker of the House of Repre-
sentatives, as well as advisei-s from the Depart-
ment of State and the Atomic Energy Commis-
sion. The Conference was presided over by Am-
bassador Joilo Carlos Muniz of Brazil.

The Conference, at whicli the largest number of
nations in history were gathered together, was
distinguished by earnestness of purpose and
understanding. Notwithstanding the complexity
of the subject, and the newness of the field in
whicli it was working, the Conference found it
possible, at the end of 36 days of fruitful dis-
cussion and negotiation, to arrive at agreement

"For text, see ibid., Nov. H, 19.")r>. p. SOI.
' For text, see ibid., May 21, 1956, p. 852.

on the setting up of the International Atomic
Energy Agency and its statute. The statute was
opened for signature on October 26, 1956, and was
signed on that date by plenipotentiaries of 70 of
the 81 nations represented at the Conference.
During the 9()-day period during which, by its
tenns, the statute remained open for signature, it
was signed in behalf of 10 other nations.

The statute provides for the establishment of an
organization to assist the nations of the world in
entering tlie atomic era. Created under the aegis
of the United Nations, the International Atomic
Energy Agency will function as an autonomous
international organization and will establish an
ajipropriate relationshii) with the United Nations
consistent with the Agency's statute. The pur-
pose of the Agency is to supply a means tlirough
wiiich the promise of nuclear energy will be open
to the benefit of all, to be utilized as an instrument
of progress and peace.

To achieve its goal, the Agency will take ad-
vantage of the means that will be voluntarily
placed at its disposal by member states. It will
extend aid in the form of fissionable materials,
source materials, special equipment, and technical
assistance. The Agency's assistance will be based
on agreements freely negotiated between govern-
ments and the Agency. Provision is made for
controls and safeguards to ensure that fissionable
materials made available through the Agency will
not be diverted to nonpeaceful purposes and will
not endanger the health of populations or in-
dividuals. The controls and safeguards are in-
tended to guarantee the peaceful and safe utiliza-
tion of materials supplied by the Agency, or used
in Agency-sponsored projects, and of fissionable
byproducts derived therefrom.

Tliere is transmitted herewith a summary of the
statute directed to its specific provisions. There
is also transmitted a copy of the report submitted
to the Secretary of State by the chairman of the
United States delegation to the Conference, on the
statute. In addition, a copy of the communica-
tion dated October 25, 1956, to which reference is
made in the statement accompanying the Vene-
zuelan signatures to the .statute, is included, to-
gether with a translation thereof.

It is planned that a draft Participation Act to
provide for appointment of representatives of the
United States to the Agency, and to make pro-
vision with respect to United States participation

Apr/7 15, 1957

617

in the Agency, will be submitted to the Congress
early in the present session.

It is earnestly hoped that the Senate will give
prompt consideration to the Statute of the Inter-
national Atomic Energy Agency and that the
Congress will enact without delay the proposed
Participation Act. Under your personal initia-
tive the United States has been the principal ad-
vocate of an international organization designed
to turn the mighty force of the atom from the
devastation of war to the constructive avenues of
peace. It is hoped that the United States may be
among the (irst to ratify the Statute of the Inter-
national Atomic Energy Agency and, by our
leadership and support, help to ensure the suc-
cess of that Agency from its inception.

Kespectfully submitted.

John Foster Dulles.

(Enclosures: (1) Certified copy of the Statute of the
International Atomic Enersy Agency;' (2) summary;

(3) report by chairman of United States delegation;'

(4) Venezuelan communication dated October 25, 1956,
and translation.")

SUMMARY OF THE STATUTE

ARTICLES I AND n

The statute upon its entry into force will
establish the International Atomic Energy
Agency, the basic objective of which is to seek
to accelerate and enlarge the contribution of
atomic energy to peace, health, and prosperity
throughout the world without at the same time
furthering any military purpose.

ARTICLE ni

The functions of the Agency set forth in article
III of the statute are (a) to encourage and assist
research on, and development and practical appli-
cation of, atomic energy for peaceful purposes
throughout the world ; {b) to make provision for
materials, .services, equipment, and facilities
needed to carry out the foregoing purpose; (c) to
foster the exchange of scientific and technical in-
formation on, and the exchange and training of
scientists and experts in, the peaceful uses of
atomic energy; {d) to establish and administer
safeguards to ensure that fissionable or other

materials, services, equipment, facilities, and in-
formation with which the Agency deals are not
used to further any military purpose; (e) to par-
ticipate in the establishment, adoption, and appli-
cation of standards of safety for the protection of
health and the minimization of danger to life and
property from activities in the field of atomic
energy; and (/) to acquire or establish any facili-
ties, plant, and equipment useful in carrying out
its authorized functions.

In carrying out its functions, the Agency is re-
quired by the statute (a) to conduct its activities
in accordance with the purposes and principles of
the United Nations and, in particular, in con-
formity with United Nations policies furthering
the establishment of a safeguarded worldwide dis-
armament; (6) to control the use of such fission-
able materials as are received by the Agency so as
to ensure that they are used only for peaceful
purposes; (c) to allocate its resources so as to
secure efficient utilization and wide distribution of
their benefits throughout the world, bearing in
mind the special needs of the underdeveloped
areas; (d) to submit annual reports on its activi-
ties to the General Assembly of the United Na-
tions; (e) when appropriate, to submit reports
and information to the Security Council, Eco-
nomic and Social Council, and other organs of
the United Nations; (/) to refuse to give assist-
ance to member countries under political, eco-
nomic, military, or other conditions that are in-
consistent with the statute; and {(/) subject to the
terms of any agreements that may be made be-
tween a state or group of states and the Agency,
to give due observance to the sovereign rights of
states.

ARTICLE IV

Initial members of the Agency are to be states
members of the United Nations or of any of the
specialized agencies which signed the statute
within 90 days after it was opened for signature
and which deposit instruments of ratification.
The following 80 states signied the statute during
the period it was open for signature:

' Not printed here.

"English translation only printed here.

Afslianistan

Albania

Ar.sontina

Australia

Austria

Belgium

Bolivia

Brazil

Bulgaria

Burma

Byelorussian Soviet So-
cialist Republic
Cambodia
Canada
Ceylon
Cbilo
China
Colombia

618

Department of State Bulletin

Costa Rica

Cuba

(Czechoslovakia

Denmarlj

Dominican Republic

Ecuador

Egypt

El Salvador

Ethiopia

France

Federal Republic- of

Germany
Greece
Guatemala
Haiti
Honduras
Hungary
Iceland
India
Indonesia
Iran
Iraq
Israel
Italy
Japan
Korea
Laos
Lebanon
Liberia
Libya

Luxembourg
Mexico
Monaco
Morocco
Netherlands

New Zealand

Nicaragua

Norway

Pakistan

rauania

Paraguay

Peru

Philippine Republic

Poland

Portugal

Rumania

Spain

Sudan

Sweden

Switzerland

Syria

Thailand

Tunisia

Turkey

Ukrainian Soviet So-
cialist Republic

Union of South Africa

Union of Soviet Social-
ist Republics

United Kingdom of
Great Britain and
Northern Ireland

United States of Amer-
ica

Uruguay

Vatican City

Venezuela

Viet-Nam

Yugoslavia

Otlier states may become members of the Agency
if their membership is approved by the General
Conference upon recommendation of the Board
of Governors. In making their recommendations
and approvals, the Board of Governors and the
General Conference are directed to —

determine that the State is able and willing to carry out
the obligations of membership in the Agency, giving due
consideration to its ability and willingness to act in ac-
cordance with the purposes and principles of the Charter
of the United Nations.

ARTICLE v

The General Conference of the Agency is to be
composed of representatives of all the members
of the Agency, each member having one vote
therein. The General Conference is to meet an-
nually and in such special sessions as are called
by the Director General at the request of the Board
of Governors or a majority of the members of the
Agency. Each member is to be represented at
the sessions of the General Conference by one dele-
gate who may be accompanied by alternates and
advisers.

The General Conference is to have powers of
discussion and recommendation on any matters
within the scope of the statute. In addition, it is
to elect 10 members of the Board of Governors.

approve states for memborsliip, suspend members
for persistent violations of the provisions of the
statute (art. XIX), and consider the annual re-
port of tlie Board of Governors. The General
Conference is also to be responsible for approving,
or recommending changes in, the budget submitted
to it by the Board of Governors; approving re-
ports to be submitted to the United Nations except
reports to the Security Council of noncompliance
witli Agency safeguards (art. XII (C)) ; approv-
ing, or recommending changes in, agreements be-
tween the Agency and the United Nations or other
organizations; approving rules regarding the ex-
ercise of the borrowing power, acceptance of vol-
untai-y contributions, and use of the general fund
(art. XIV (F)): approving amendments to the
statute; and approving the appointment of the
Director General. The General Conference may
make decisions on any matter referred to it for
that purpose by the Board of Governors and may
propose matters for consideration by the Board
or request reports from the P>oard on any matters
relating to the functions of the Agency.

ARTICLE VI

The Board of Governors is to have primary
responsibility for carrying out the functions of
the Agency. In pai-ticular, it is to have responsi-
bility for determining tlie quantities of source ma-
terials, as defined in article XX, and other ma-
terials the Agency will accept and the use of such
source and special fissionable materials as are made
available to the Agency (art. IX) ; for ap^jroving
projects for the peaceful use of atomic energy
(art. XI) ; for imposing sanctions against mem-
bers which do not comply with Agency safeguards
(ai't. XII) ; for submitting to the General Con-
ference an annual report (art. VI) and tlie annual
budget estimates, apportioning administrative ex-
penses among members in accordance with a scale
to be fixed by the General Conference, and estab-
lishing periodically a scale of charges, for ma-
terials, services, equipment and facilities fur-
nished to members by the Agency (art. XIV) ; for
negotiating agreements establishing the relation-
sliip of the Agency to tlie United Nations and
other organizations (art. XVI) ; for requesting,
when necessary, special sessions of the General
Conference (art. V) ; for designating nonelected
members to the succeeding Board and for estab-
lishing necessary committees (art. VI) ; for ap-

April 15, 1957

619

pointing with consent of the General Conference
the Director General (art. VII) ; and for prepar-
ing such reports as the Agency is required to make
to the United Nations or other organizations (art.

VI).

In forming the composition of the Board, the
outgoing Board (or in the case of the firet Board,
the Preparatory Commission referred to in the
annex to the statute) designates (a) the 5 mem-
bers most advanced in the technology of atomic
energy including the production of source ma-
terials; (b) the member most advanced in the
technology of atomic energy including the pro-
duction of source materials from each of the fol-
lowing areas not represented by the aforesaid 5 :
North America, Latin America, Western Europe,
Eastern Europe, Africa and the Middle East,
South Asia, South East Asia and the Pacific and
the Far East; (c) 2 members from the following
producers of source materials : Belgium, Czecho-
slovakia, Poland, and Portugal; (d) 1 other
member as a supplier of technical assistance; in
addition, the General Conference elects (e) 10
members, having due regard to the equitable rep-
resentation on the Board of those areas listed above
(category (&)) so that the Board at all times in-
cludes in this category a member from each of
those areas except North America. Members des-
ignated under categories (d) and (e) (except for
5 members elected to the first Board) are ineligible
for redesignation or reelection in the same cate-
gory the following year. Each member of the
Board has one vote, and decisions are taken by a
majority of those present and voting, except for
decisions on the Agency's budget which require a
two-thirds majority of those present and voting.

ARTICLE VII

The staif of the Agency is to be headed by a
Director General appointed for 4 years by the
Board of Governors with the approval of the
General Conference. He is to be responsible for
the appointment, organization, and functioning
of the staif, subject to the control of the Board of
Govemoi-s and in accordance with regulations
they adopt. The Agency staff is to be kept to a
minimum. In recruiting the staff and determin-
ing the conditions of service, the paramount con-
sideration is to be to secure em])loyees of the
higliest standards of efficiency, technical com-
petence, and integrity. Subject to that considera-

tion, due regard is to be paid to members' con-
tributions to the Agency and to tlie importance of
recruiting staff on as wide a geographical basis
as possible.

The Director General and the staff are forbid-
den to disclose any industrial secret or other con-
fidential information coming to their knowledge
by reason of their official duties for the Agency.
Tlie international character of the responsibilities
of the Director General and the staff' are recog-
nized.

ARTICLE VIII

Article VIII of the statute contains provisions
for the exchange and dissemination of informa-
tion relating to the nature and peacefid uses of
atomic energy. It provides that each member
should make available such information as would,
in the judgment of the member, be helpful to the
Agency, and requires each member to make avail-
able all scientific information acquired as a result
of assistance extended by the Agency. The
Agency ia to make information thus acquired
available in accessible form and to encourage the
exchange of information among its members. The
statute in no way requires a government to trans-
mit classified information.

ARTICLE IX

Provisions governing the supply of special fis-
sionable, source, and otlier materials by members
to the Agency are detailed in article IX. Mem-
bers are required to notify the Agency annually of
the quantities, form, and composition of the ma-
terials that they will voluntarily make available
to the Agency during the succeeding calendar
year. The materials are to be supplied on terms
agreed to between the Agency and the members
supplying them. The Boai'd of Governors is to
determine the use to be made of materials supplied
by members, and no member has the right to re-
quire the Agency to keep separate the materials
that it supplies or to designate the specific project
in which they may be used. The materials sup-
plied may, in the discretion of the member sup-
plying them, be stored by that member or by the
Agency. The Agency is to be resjionsible for
storing and protecting the materials in its pos-
session, and, to that end, the Agency is required
to establish or acquire such facilities (storage,
laboratories, housing, etc.) , safeguards, and health
and safety measures as are necessary.

620

Department of State Bulletin

ARTICLE X

In addition to special fissionable, source, and
otlier materials, members may make available to
tiie Agency services, equipment, and facilities that
may be of assistance in carrying out the Agency's
projects.

ARTICLE XI

Agency participation in pi-ojects for peaceful
uses of atomic energy may be requested by any
member or group of members. Agency participa-
tion takes the form of supplying, or arranging for
the supply of, necessary materials, services, equip-
ment, and facilities, as well as assisting in securing
financial support from outside sources. A mem-
ber or group of members requesting the assistance
of the Agency is required to submit an explana-
tion of the purpose and extent of the project and,
in considering the request, the Agency may send
qualified persons into the territory of the member
or members making the request to examine the
l^roject. The Statute states specific criteria that
are to be considered by the Board of Governors
before approving a project: (1) usefulness and
technical feasibility ; (2) probability of successf id
completion; (3) adequacy of safeguards; (4) need
for Agency assistance; (5) equitable distribution
of materials and other resources available to the
Agency; (6) special needs of the underdeveloped
areas. In addition the Board is directed to con-
sider "such other matters as may be relevant."

If the Board approves a project, an implement-
ing agreement is concluded between the Agency
and the member or group of members submitting
the project. The statute requires that the agree-
ment shall include provisions covering the follow-
ing topics: (1) allocation of required special fis-
sionable or other materials to the project; (2)
transfer of such materials, under appropriate safe-
guards, to the member or group of members sub-
mitting the project; (3) terms and conditions on
which any materials, services, equipment, and fa-
cilities are provided to the member or members
submitting the project; (4) an undertaking that
the assistance provided will not be used to further
any military purpose; (5) the relevant safeguards
applicable under article XII of the statute; (6)
rights and interests of the Agency and of the
member or members concerned in any invention or
discoveries arising from the project; (7) settle-
ment of disputes ; and (S) such other provisions as
the Board of Governors considers appropriate.

ARTICLE XII

Article XII, dealing witli safeguards, is crucial
to the acliievement of the Agency's objectives. It
was debated at great length in tlie Conference tliat
drafted the statute. By incorporating article
XII in the statute, the Conference gave recog-
nition to tiie need for .safeguards designed to pre-
vent source and fissionable material used or pro-
duced in Agency-sponsored projects from being
diverted to use for militai-y purposes.

The safeguards are applicable only "to the ex-
tent relevant to the project or arrangement" in
question. For example, if the Agency were to
supply radioisotopes for medical diagnosis, there
would be neither occasion nor need for any safe-
guards other than those relating to the protec-
tion of health and safety. The first safeguard
specified in article XII (A) gives the Agency the
right and the responsibility to — ■

examine the design of specialized equipment and facilities,
incluclini: luielear reactors, and to approve it only from
tlie viewpoint of assuring tliat it will not further any
military purpose, that it complies with applicable health
and safety standards, and that it will permit elTective
application of the safeguards provided for in this article.

Approval or disapproval of a design on the basis
of criteria that are not relevant to the problem of
safeguards would be improper under article XII,
altliough it should be pointed out that questions of
scientific and technical feasibility, etc., are to be
considered by the Board of Governors in approv-
ing the project as a whole (art. XI).

The second listed safeguard, requiring observ-
ance of health and safety measures prescribed by
the Agency, is aimed at the protection of life and
property.

The third and fourth listed safeguards, dealing
with the making of operating records and prog-
ress reports in order to insure accountability for
source and special fissionable materials used or
produced in Agency products, are necessary to
prevent diversion to military purposes as well as
to achieve sound management and administration.

The fifth listed safeguard provides that the
means used for chemical processing of materials
irradiated in an Agency-sponsored project must
be approved by the Agency. It is necessary that
the Agency have this right, for the dangers to
health and safety and the possibility of diversion
to military purposes during the chemical pro-
cessing are great. The Agency is also given the
right to require that any special fissionable ma-

April ?5, 7957

621

terials recovered or produced as a byproduct of
an Agency-sponsored project be used for peace-
ful purposes under continuing Agency safe-
guards or, if such byproducts are in excess of
current needs for peaceful purposes, to require
that they be deposited with the Agency until such
time as the member or members concerned can
put them to peaceful uses. These requirements
provide the basis for preventing the accumulation
by members of stockpiles of special fissionable
materials from Agency projects. Such provisions
are essential, since a stockpile honestly intended
for future peaceful use is indistinguishable from
one intended for future military use and could,
in fact, be turned to military uses. However, the
fact that a nation producing byproduct fissionable
materials in an Agency-sponsored project cannot
stockpile them itself does not mean that it cannot
make full use of them for peaceful purposes at
some future time, for the Statute expressly pro-
vides that such materials deposited with the
Agency shall "at the request of the member or
members concerned ... be returned promptly
. . . for use under" continuing Agency safe-
guards.

The sixth listed safeguard is inspection. After
consultation with the state or states concerned, the
Agency has the right to send into recipient states
inspectors selected in accordance with the stand-
ards set foi-th in article VII. They are to be given
access at all times to all places and data and to any
person who by reason of his occupation deals with
materials, equipment, or facilities which are
required by the statute to be safeguarded, as
necessary to account for source and fissionable
materials and to verify compliance with the ap-
plicable health and safety measures, witli the
undertaking against use in furtherance of any
military purpose, and with any other conditions
prescribed in the agreement between the Agency
and the state or states concerned.

The inspectors ai-e also charged with the respon-
sibility (art. XII (B)) for examining all opera-
tions conducted by the Agency itself in order to
insure that the Agency's activities, equally with
those of the recipient countries, comply with the
appropriate health and safety measures and <^hat
adequate measures are taken to prevent source
and special fissionable materials in the custody of
the Agency or used or produced in its operations
from being used in furtherance of any military
purpose.

Subparagraph C of article XII spells out the
procedures by which sanctions are brought to bear
in the event of noncompliance with the applicable
safeguards and undertakings. The inspectors re-
port noncompliance to the Director General, who
in turn transmits the report to the Board of
Governors. The Board is required to report the
noncompliance to all members of the Agency and
to the Security Council and General Assembly of
the United Nations. If the recipient state or
states fail to take corrective action within a reason-
able time, the Board may curtail or suspend
Agency assistance and call for the return of ma-
terials and equipment made available to the state
or states concerned. In accordance with article
XIX, the Agency may also suspend any non-
complying member from the exercise of the privi-
leges and rights of membei"shii3.

ARTICLE xm

Article XIII provides that, unless otherwise
agreed upon between the Board of Governors and
the member furnishing to the Agency materials,
services, equipment, or facilities, the Board shall
enter into an agreement with such member pro-
viding for reimbursement for the items furnished.

ARTICLE xrv

Provisions regarding finance are set forth in ar-
ticle XIV. Annual budget estimates for Agency
expenses are to be prepared initially by the Di-
rector General and submitted by the Board of
Governors to the General Conference for approval.
If the General Conference does not approve the
estimates, it may make recommendations to the
Board so that the latter may submit further esti-
mates.

Administrative expenses of the Agency will in-
clude costs of administrative staff, costs of meet-
ings, expenses of preparing Agency projects and
distributing information, together with such costs
of implementing safeguards and of handling and
storing special fissionable material as are not other-
wise recoverable. The scale to be used in appor-
tioning administrative expenses among the mem-
ber states is to be fixed by the General Conference,
which is to be guided by the principles followed
in assessing contributions of member states to the
United Nations budget.

The cost of materials, facilities, plants and equip-
ment furnished by tlie Agency and expenses (other
than administrative expenses) incurred in connec-

622

Department of Sfafe Bulletin

tion therewith are to be financed through charges.
The scale of charges is to be worked out periodi-
cally by the Board of Governors. In addition,
voluntary contributions received by the Agency
may be applied, at the discretion of the Board of
Governors, to meet such expenses. A separate
fund is to be set up to receive the proceeds of the
operational charges assessed against members.
Out of this fund, members furnishing materials,
services, equipment, or facilities are to be reim-
bursed and operational expenses of the Agency
in connection with these items are to be met.

If the revenues of this type exceed operational
expenses and costs, the excess is to be placed in a
general fund, together with any unobligated vol-
untary contributions received by the Agency. The
general fund may be used as detei'mined by the
Board of Governors, with the approval of the
General Conference.

The statute provides also for borrowing powere
on the part of the Agency. It makes clear, how-
ever, that members of the Agency ai-e not legally
or financially liable for lepayment of the money
borrowed.

A two-thirds majority of those present and vot-
ing is required for decisions of the General Con-
ference on financial questions and of the Board of
Governors on the amount of the Agency's budget.

AKTICLE XV

Article XV concerns legal capacity, privileges,
and immunities to be enjoyed by the Agency in
the territory of each member, and the privileges
and immunities to be enjoyed by delegates, alter-
nates, advisers, the Director General, and the
Agency staff in exercising their official functions.
Provision is made for special agreements on this
subject between the Agency and its members.

It is anticipated that such privileges and im-
munities as may be granted in the United States
will be. pursuant to the International Organiza-
tions Immunities Act (22 U.S.C. 288 et seq.).

ARTICLE XVI

Establislunent by special agreement of the re-
lationship between the Agency and the United
N'ations is provided for by article XVI, with
special reference to submission of reports to the
United Nations and consideration of United
Nations resolutions. The article also anticipates
the establishment by special agi-eement of an ap-

propriate relationship between the Agency and
other organizations wilh lelalod interests.

ARTICLE XVII

Article XVII calls for reference to the Inter-
national (yourt of Justice of disputes concerning
interpretation or application of the statute, unless
the parties concerned agree on another mode of
.settlement. In addition, the General Conference
and the Board of (lovernors are separately em-
powered, subject to autliorization from the United
Nations General Assembly, to request the Inter-
national Court of Justice to give an advisoiy
opinion on any legal question arising within tlie
scope of the Agency's activities.

ARTICLE XVIII

Amendments to the statute are [jrovided for in
article XVIII. Proposals for amendment may
be made by any member and will be communi-
cated to all members at least ninety days before
being considered by the General Conference.
Amendments come into force for all membei-s
when they have been approved by the General
Conference by a two-thirds majority of those
present and voting and have been accepted by two-
thirds of all the members in accordance with their
respective constitutional processes.

If a member is unwilling to accept an amend-
ment to the statute, it may withdraw from the
Agency by notice in writing to the depositary
government. In addition, a member may with-
draw for any reason at any time after 5 years from
the date the statute takes effect. Withdrawal
does not relieve a member of its contractual obli-
gations with regard to assistance received from
the Agency, or budgetary obligations for the year
in which it withdraws.

This article also provides that the question of
a general review of the statute is to be placed on
the agenda of the fifth annual session of the Gen-
eral Conference. If approved by a majority of
members present and voting, the review is to take
place at the next General Conference. There-
after, a proposal for general review may be sub-
mitted at any General Conference session.

ARTICLE XIX

If a member of the Agency becomes in arrears
in its financial contributions to the Agency in an
amount totaling 2 years' contributions, it is to lose
its vote in the Agency unless the General Con-

April 15, 1957

623

ference is satistiod that failuiv to pay is due to
conditions bevond the member's control (art,
XIX).

Persistent violation of the statute or of any
airreeinent made under it may result in suspension
of tlie otlenilinir member from privilesres and
riirhts of membership. Decisions on suspension
are to be made, upon recommendation of the Board
of Governors, by a two-thirds majority of niem-
l)ei's present and voting in the General Gonfer-
ence.

ARTICLE XX

Article XX defines the terms "special fissionable
material." "uranium enriched in the isotopes 235
or 2'.M." and "source material."

.\RT1CLE XXI

In accordance with article XXI, the statute was
opened for signature on October 26, lOoG, by states
meml>ei-s of the Ignited Nations or of any of the
specialized airencies and remained open for 90
days. KatiHcation bv signal orv states is called
for.

The United States is named depositary Gov-
ernment for receipt of instruments of notification
by signatory states and instruments of acceptance
by states approved for membership in conformity
with the statute. It is specified that ratification
or acceptance by states is to be efi'ected in accord-
ance with constitutional proi-esses.

The statute, apart from its annex, conies into
force on deposit of instnunents of ratification by
18 states, including 3 of the following: Ganada,
France, the Union of Soviet Socialist Republics,
the United Kingdom, and the United States.
The annex, by the terms of article XXI, came into
force Octolier 26, lt>56, the day on which the
statute was opened for signature.

.\RTICLE XXII

Article XXIl provides for registration of the
statute pursuant to article 102 of the United Na-
tions Gharter. In addition, agreements between
the Agency ami any member or membei-s, agree-
ments between the Agency and any other org-ani-
zation or organizations, and agreements between
members subject to the approval of the Agency
are to be i-egistered with the Agency and, if re-
quired by article 102 of the United Nations Ghar-
ter, are also to be registered with the United
Nations.

ARTICLE xxm

Article XXIIl provides for equal authenticity
of the five langiuvge texts in which the statute is
drawn up and for transmittal of certified copies
of the statute to the governments concerned.

AXXEX I

The annex to the statute establishes a Prepara-
tory Gommission, which is composed of 1 repre-
sentative each of Australia, Belgium, Brazil,
Ganada, Gzechoslovakia, France, India, Portugal,
Union of South Africa, Union of Soviet Socialist
Republics, the United Kingdom, and the United
States, and 1 representative each of 6 other states
which were chosen by the International Gonfer-
ence on the Statute of the International Atomic
Energy- Agency (Argentina, Egypt, Indonesia,
Japan, Pakistan, and Peru). The Preparatory
Gommission is to remain in existence until the
first General Gonference of the Agency is con-
vened and a Board of (lovernoi-s has Ihhmi selected
in accordance with article VI of the statute. The
Gonunission elects its own officers, adopts its own
rules of privedure, establishes such committees as
it deems necessttry, and determines its place of
meeting. It has appointed an Executive Secre-
tary and a small stall in accordance with the pro-
visions of the annex. The expenses of the Com-
mission are being met by a loan negotiated by the
Gonunission with the United Nations. The loan
is ultimately to be repaid by the Agency. If the
funds from this source should prove insufficient,
the Gommission is empowered to accept advances
from governments; if such advances are made,
they may be set otf against contributions of the
governments concerned to the Agency.

The functions of the Preparatory Gonunission
are (a) to make arrangements foi' the first session
of the General Gonference of the Agency, includ-
ing the preparation of a provisional agenda and
draft rules of procedure; (h) to designate certain
members of the first Board of Governors of the
Agency in accordajiee with subparagraphs A-1
and A-2 and paragraph B of article VI of the
statute; (c-) to make studies, reports, and recom-
mendations for tJie first session of the General
Gonference and for the Board of Governors on
subjects requiring immediate attention, including
financing, prognwus and budget, technical prob-
lems relevant to planning Agency operations,
establishment of a permanent stall' of the Agency,
and location of permanent headquartere for the

624

Department of State Bulletin

Agency; {d) to make recommendations for the
first meetinf^ of the ]ioar«i of (iovemois concern-
ing the provisions of a headquarters agreement;
(e) to negotiate with the United Nations regard-
ing a draft agi-eement to define the relationship
between the United Nations and the Agency; and
(/) to make recommendations wjncerning tlie
relationship of the Agency to other international
organizations.

LETTER FROM CHAIRMAN OF VENEZUELAN
DELEGATION

Republic of Venezuela
delega'non to tjie united nations

New Yohk, M October 1956
Sir, I have the honour to inform you that in ac-
cordance with instructions I have received from
the Venezuelan Government my delegation has
been authorized to sign the Statute of the Inter-
national Atomic Energy iVgency, subject to the
terms of the following declaration:

"The Delegation of Venezuela signs the pres-
ent Statute a/1 refererulum and on the under-
standing that :

1) As regards article XVII, the signing or
ratification of this Instrument b}- Venezuela
does not imply Venezuela's acceptance of the
jurisdiction of the International Court of
Justice without its express consent in each in-
dividual case:

2) No amendment to this Instrument under
paragraph C of article XVIII shall be re-
garded by Venezuela as operative until its
constitutional provisions concerning the rati-
fication and def)Osit of public treaties have
been complied with."

I also have the honour to confirm that the fol-
lowing members of my delegation ha%-e been au-
thorized to sign the aforesaid Statute : the under-
signed. Dr. FrancLsco Alfonzo Ravard and Dr.
Marcel Granier.

I have the honour to Ije, Sir, etc.,

(signed) Hu3Ibebto Feenaxdez-Moran
Chairman of the Venezuelan Delegation to the

Conference on the Statute of the Interruitiorud

Atomic Energy Agency.

His Excellency Mr. Joao Carlos Muniz,
Preiident of tlce Conference on the Statute of the
International Atomic Energy Agency.

Amendment to Anglo-American
Financial Agreement of 1945

Statcnumt hy 'J'/iorHten V. KoJijurvi '

It is a pleasant duty to n\)\)f,u- fjcfon- this com-
mittee to speak in support of Senate Joint Reso-
lution 72 to approve tlie signature )<y tin; Sc/rre-
tary of the Treasury of the agreement of March C,
19.'i7, amending the Anglo-American Financial
Agreement of 104.0.^

Secretary Humphrey has explained the sub-
stance and financial significance of the amenda-
tory agre(;ment and the tw;lmical proljU-ms that
led to its negotiation, and I assume that you do
not wish me to cover the same ground. I would,
however, like to add a fwjtnote on the financial
side.

A\lien the financial agreement was concluded in
V.)i.}, the United States and the Unite^l Kingdom
alsfj agreed on a joint statement on the settle-
ment for lend-lease and reciprocal aid, surj>lus
war property, and claims. Paragraph 4 of the
joint statement provides: "The total liability
found U> be due to the Government of the United
States will be disf,liarged on the same terms as
those specified in the Financial Agrftement. . . ."
Accordingly, the provisions of the amendatory
agreement now before this committee will, when
approved, automatically apply to Uriti.sh pay-
ments on the lend-lease and suq>lu.s-property
obligations.

The total liability of the I'liited Kingdom un-
der the settlement was determined U> Ije $022
million, requiring payments of interest and prin-
cipal, combine<l, of %V.i million a year. The United
States has received almf^st §70 million on the prin-
cipal and %:)H million in interest on this a/:count.
These amounts represent payments in full of in-
stallments due in V.):)\ through V.):>:> and the pay-
ment of principal due in lO.vO. Interest of alxjut
$11 million due in 19.56 was withheld [sending tlie
outcome of the liriti.sh claim for a waiver of
interest. These figures are indudwl in the t/jtaLs
jast given to the committee by Secretary
Humphrey.

' Made before the Senate Banking and Currency Com-
mittee on Mar. l-'J rpreKs release 147). Mr. Kalijarri was
testifyinsr a« Acting Deputy Under Secretary for Eco-
nomic Affairs.

' For text of amendatory agreement and Prerf'lerit'H
mei».sage of tranamittal, see liCLiXTi."! of Mar. ^-I, I'J'il,
p. 492.

April 15, 7 957

625

Paragraph 6 of the joint statement provides
for drawings by the United States of up to $50
million in sterling against the total British lia-
bility. These funds may be used to finance the
Fulbright educational exchange program and the
United States foreign buildings program. Un-
der the original understanding, this facility was
to terminate on December 31, 1951, but the termi-
nation date was later changed by agreement to
December 31, 1958. Since the termination date
is not far off and since it appeared that a sub-
stantial part of the $50 million would not be drawn
by 1958, the Department of State took the oppor-
tunity afforded by the recent discussions to sug-
gest that the termination date be deferred for a
further period. The British Govermnent has in-
dicated that it is willing to eliminate the terminal
date entirely, thus giving the United States the
right to draw sterling against the remainder of
the $50 million for the duration of the agreement.
This change will insure that sterling funds will
be available to continue for a number of years
the educational and buildings programs aiithor-
ized by the Congress.

Importance of U.S.-U.K. Relations

Now we may turn to some broader questions. I
do not believe that the Department of State can
speak in support of the measure before the com-
mittee without again referring to the importance
to the United States of our relations with the
United Kingdom. The United States and the
United Kingdom stand together as friends in pro-
moting, with other countries of the fi'ee world,
our common, fmidamental ideals of justice and
freedom for people and nations. Without this
firm association, the security of the two countries
and of other free and independent nations would
be weakened. We in the United States put a high
value on the close relationships between the United
States and the United Kingdom ; the United King-
dom does also, and so do other nations of the free
world.

Nations, like people, keep their friendsliips in
good repair by forestalling potential sources of
friction and by resolving differences fairly and
amicably, and as quickly as possible, when they
arise. In this conception lies the plain virtue of
the amendatory agreement that the Piesident has
sent to the Congress for its approval. The new
arrangement provides an answer to a difficult ques-

tion that arose in the ordinary course of the rela-
tions between the United States and the United
Kingdom and, despite good will on both sides,
remained unsettled for several years. The answer,
which we see before us, is a fair one. Taken as
a whole, the new arrangement retains the balance
that was embodied in the original agi-eement of
1945 and does not confer on either side unreason-
able advantages or place upon them unreasonable
burdens. As Secretary Humphrey has shown, the
arrangement is workable and happily simple. For
these reasons, the Department of State regards
the amendatory agreement as a good agreement —
good for the United States and good for the United
Kingdom.

Need for Amending Financial Agreement

Before concluding this statement, I wish to un-
derscore one matter that the Secretary of the
Treasury discussed, that is, the fundamental need
for amending the original text of the financial
agreement. Wlien the 1945 agreement was nego-
tiated, the two Governments, looking ahead to 55
years of an uncertain future, agreed on the reason-
ableness of a waiver provision. The right to a
■waiver in specified circumstances was made an
integral part of the balance of the agreement — in
plain words, part of the bargain. Unfortunately,
when the time came for using the tests enumerated
in the waiver formula, it was found practically
impossible to apply some of them to existing con-
ditions.

It became clear that, if this problem remained
unresolved, an important feature of the agreement
would be effectively nullified. This result was
certainly not contemplated when the agreement
was negotiated in 1945. In the circumstances,
considerations of good business, constructive
foreign policy, and fair play dictated that the two
Governments jointly find a solution — in particu-
lar, a solution that would carry out the spirit of
tlie agreement by restoring to it a reasonable
counterpart of the balance that the two Govern-
ments had agreed upon in 1945. The Department
of State believes that a fair, simple, and common-
sense solution has been found to achieve this ob-
jective. The very fact that such a sohilion has
been found through amicable negotiations slmuld
strengthen the bonds of friendship and respect
tliat hold the United States and the United King-
dom together.

626

Deparlmenf of State Bulletin

Question of U.S. Approval

of Plant Protection Convention

Statement hy Christofher H. Phillips '

1 am appearing here today as a representative
of the Department of State to support approval
of the International Plant Protection Convention,
transmitted to the Senate by the President on
January 12, 1956.- Tlie convention is designed to
provide for international cooperation in control-
ling pests and diseases of phmts and plant prod-
ucts and in preventing their introduction and
spread across international boundaries. This De-
partment strongly supports the objectives and
procedures prescribed in the convention and re-
quests that favorable action on it be taken bj' this
committee. Some historical background concern-
ing the development of the convention may be of
assistance to the committee.

The first draft of the International Plant Pro-
tection Convention was drawn up at an Interna-
tional Pliytopathological Conference held on the
invitation of the Government of the Netherlands,
April 26 to May 3, 1950. This Conference had on
its agenda, among others, a consideration of cer-
tain phases of international relationships in the
field of plant protection, in particular, (1) the
abrogation of the Phylloxera Convention of 1881 ;
(2) the drafting of a revision of the International
Plant Protection Convention of 1929; (3) the
discussion of a constitution for a European Plant
Protection Conference, then in the process of for-
mation.

The inclusion of these items in the agenda re-
sulted from recommendations of the fifth session
of the Conference of the Food and Agriculture
Organization (Fag) held in "Washington in 1949,
Avhich approved a previous proposal by the Direc-
tor-General that Fao organize a worldwide plant-
pest reporting service. This action covered both
Fao's responsibility for facilitating action by gov-
ernments to eradicate and control plant diseases
and assistance to member countries in the forma-
tion of an international network to report on the
incidence of plant diseases and insect pests of
international interest. The United States was

'Made before the Senate Foreign Relations Committee
on Mar. 19 (press release 157). Mr. Phillips is Deputy
Assistant Secretary for International Organization
Affairs.

' S. Exec. D, 84th Cong., 2d sess. ; also printed in Bul-
letin of Feb. 20, 1956, p. 311.

represented at the Conference at The Hague and
in the subsequent consultations at which the lan-
guage of the convention was perfected. The re-
sulting draft was presented to the Fao Conference,
sixth session, meeting in Rome in November 1951.
Tlie Fao Conference apjjroved the convention at
tliat time and recommended that it be opened to
signature and ratification by member governments.
The convention was signed on belialf of the United
States of America and 36 otlier states in tlie period
between December 6, 1951, to May 1, 1952. The
United States signed ad referendnm. The con-
vention, in accordance with article XIV, came into
force on April 3, 1952. It is now in force with
respect to 37 countries wliich have completed the
ratification or adiierence procedure.

Previous Conventions

Tlie Phylloxera Convention of Bern of 1881,
which was ratified and adhered to by 16 European
countries, represented the first international action
for coordination in plant protection by means of
quarantine measures. In 1929 an International
Plant Protection Convontion was dmwn up and
agreed to at a meeting sponsored by the Interna-
tional Institute of Agriculture in Rome. The
United States was not a party to either of these
conventions, as the Department of Agriculture
considered that they were not satisfactory from
the point of view of United States interests and
legislation. However, the United States has al-
ways recognized the value of international co-
operation in regard to the international control
of plant pests and diseases and, tliercfore, wel-
comed the new approach to this problem through
the Fao.

FAO's Functions in Regard to International Con-
ventions

Under its constitution, the Conference of the
Fao is authorized to "submit to Member Nations
conventions or agreements concerning questions
relating to food and agriculture. . . . Conven-
tions or agreements approved by the Conference
or Council shall come into force for each Member
Nation only after acceptance by it in accordance
with its constitutional procedure." '

The Rules of Procedure wliich govern the de-
velopment of conventions by Fao provide for cer-

' FAO Constitution, art. XIV.

AprW 15, 1957

627

tain specific consiiltations with member fjovern-
ments pi-ior to approval of the convention for sub-
mission to governments and, in addition, provide
that "Any convention or agreement submitted to
Member Nations by the Conference or the Coun-
cil . . . shall come into force as the convention,
agreement, regulations, or supi)lementary agi-ee-
ments may prescribe, provided that no Nation
shall be bound unless such Nation has accepted it
in accordance with its constitutional procedure."' ■*
As far as the objectives and provisions of the
International Plant Protection Convention are
concerned, they deal only with broad international
relationships in the field of plant protection. The
convention does not disturb the responsibility of
the Secretary of Agriculture under the Plant
Quarantine Act of 1912, as amended, to decide on
pest-prevention measures to protect American
agriculture. Nor does it attempt to take over any
of the responsibility of individual governments
for final decision on needed plant quarantine
measiires. The convention does not require that
the judgment of the contracting governments be
superseded by decisions of an international body.

Effective Regional Action Developed Under Inter-
national Plant Protection Convention

The International Plant Protection Convention
has been an effective influence in stimulating the
development of supplementary regional plant \ivo-
tection agreements, under article III of the con-
vention. Two such agreements are now in effect,

(1) European Plant Protection Agreement and

(2) Plant Protection Agreement for Southeast
Asia and the Pacific Region. The United States
Government is not and does not intend to become
a part}' to either of these agreements, since they
are concerned with plant protection measures to
be taken entirely within the respective regions.
However, the U.S. appi-oves of the objectives of
these regional conventions. Effective action
taken by goAernments within these regions for the
control and prevention of the spread of specific
plant-pest and quarantine problems cannot help
but contribute to the welfare of U.S. agriculture,
since tlie dangers of infestation in the U.S. from
these sources will thereby be reduced.

In conclusion, I should like to call attention to
the inipoi-tanco of becoming party to this conven-
tion as an evidence of our wholeliearted support of

*P'AO Uules of Proeeduio, rule XXI, pur. 4.

the objectives and work of the Fao. This is the
first and most important convention developed by
the Fao, an important specialized agency of the
United Nations, of wliich the U.S. has been a mem-
ber since its inception in 1945. The objective of
the Fao is to promote international cooperation in
the improvement of food and agi-icultural produc-
tion, marketing, and trade, with a view to raising
the levels of living of rural populations and im-
proving nutritional standards generally. These
objectives are especially important to the two-
thirds or more of the world's population who
depend on agi-iculture, forestry, or fishing for sub-
sistence, but who often still live in conditions of
extreme poverty and malnutrition.

The U.S., through its bilateral program of eco-
nomic aid and cooperative technical assistance, is
helping people in many of the free countries in
underdeveloped areas of Latin xlmerica, Asia,
Africa, and the Near East to raise their agi-icul-
tural and nutritional levels. We have a consider-
able investment in their welfare. Also, through
Fao, the U.S. is cooperating with 71 other govern-
ments to bring about the better exchange of agi'i-
cultural technical knowledge and techniques which
will help governments in all parts of the world to
improve food and agricultural production to meet
the needs of the world's growing population. The
International Plant Protection Convention is one
way by which all signatory governments are
undeitaking to work together to reduce the danger
of the international spread of plant pests and dis-
eases. Effective action taken by participating gov-
ernments along the lines recommended by this
convention should, over a period of time, con-
tribute materially toward the control of devastat-
ing plant pests and diseases, thereby permitting
a continued progress in food and agricultural de-
velopment. Inasmuch as the convention is now
in force for 37 countries, we believe that favorable
action by the United States Government will be
warndy welcomed by the 37 countries which are
already parties to the convention, and by the Di-
rector-General of Fao, who has certain responsi-
bilities under the convention for its successful
operation, and by the 11 govei'uments in wliich
ratification is currently pending. I, theroi'ore,
hope that, both as a means of promoting our
friendly relationships witli I'ountries membere of
Fao and also because ajiproval of the convention
is deemed to be in the national interest, you will
recommend favorable action.

628

Department of State Bulletin

I should now like to ask the representative of
the DeiJartnient of Agriculture to discuss with
you the details of the International Plant Pro-
tection Convention, particularly as (hey apply to
the responsibilities of the Secretary of Agriculture
under existing legislation and to the interests of
United States agriculture generally.

Congressional Documents
Relating to Foreign Policy

85th Congress, 1st Session

The Objectives of United States Economic Assistance
Programs. A study prepared at the request of the Sen-
ate Special Committee To Study the Foreign Aid Pro-
gram by the Center for International Studies, Massa-
chusetts Institute of Technology (pursuant to S. Res.

285, 84th Cong.). No. 1, January ia")7. 73 pp. [Com-
mittee print.]

Control and Reduction of Armaments. Hearings before a
subcommittee of the Senate Committee on Foreign Re-
lations pursuant to S. Res. 03, S. Res. 1K5, and S. Res.

286. Part 12, January 10-17. 1957, Washington, D.C.
147 pp.

Economic Report of tlie President. January 23, 1057.
200 pp.

First Annual Report on the Operation of the Trade Agree-
ments Program. H. Doc. 93. Febniary 11, 1957. 248 pp.

Economic Aid and Technical Assistance in Africa. Re-
port of Senator Theodore Francis Green on a study mis-
sion jiursuant to S. Res. 102, 84th Congre.ss. February
21, 19.^)7. 34 pp. [Committee print.]

Twelfth Rei>ort of United States Advisory Commission on
Information. H. Doc. 98, February 22, 1957. 19 pp.

Improvement of Procedures for the Development of
Foreign Air (I'ommerce. Report to accompany S. 1423.
S. Rept. 119, Febniary 27, 1957. IS pp.

Greece, Turkey, and Iran. Report on Unitetl States
foreign assistance programs prepared at the request of
the Senate Special Committee To Study the Foreign Aid
Program by Former Ambas.sador Norman Armour (pur-
suant to s". Res. 285, S4th Cong, and S. Res. 35, 85tJi
Cong.). Survey No. 1, February 19.57. 53 pp. [Com-
mittee print.]

Lebanon, Jordan, and Iraq. Report on United States
foreign assistance programs prepared at the request of
the Senate Siwcial Committee To Study the Foreign
Aid Program by Hamilton Fish Armstrong, editor.
Foreign Affairs (pursuant to S. Re.s. 285, S4th Cong, and
S. Res. 35, S.otb Cong. ) . Survey No. 2, February 1957.
28 pp. [Committee print.]

Personnel for the Mutual Security Program. A study
prepared at the re<iuest of the Senate Special Committee
To Study the Foreign Aid Program by Louis J. Kroeger
and Associates. No. 2, February 1957. 68 pp. [Com-
mittee print.]

American Private Enterprise, Foreign Economic Develop-
ment, and the Aid I'rograms. A study prepared at the
request of the Senate Special Committee To Study
the Foreign Aid Program by the American Enterprise
Association, Inc. (pursuant to S. Res. 2S.5, 84th C<ing.,
and S. Res. 35, .S"tli Cong.). No. 7, February 1957.
68 pp. [Committee print.]

Trading With the Enemy Act. Report of the Senate Com-
mittee on the Judiciary made by its Subcommittee To
Examine and Review the Administration of the Trading
With the Enemy Act, pursuant to S. Res. 171, S4th
Cong., 2d sess., as extended by S. Res. 84, 85th Con-
gress. S. Rept. 120, JIarch 1, 1957. 23 pp.

TREATY INFORMATION

Atoms-for-Peace Agreement With Iran

On March 6 the U.S. Atomic Energy Commis-
sion and the Department of State (press release
116) announced that representatives of Iran and
the United States on March 5 signed a proposed
agreement for cooperation in research in the
peaceful uses of atomic energy. The signing was
announced in Iran by His Imperial Majesty, the
Shah, at the opening ceremony of the U.S. atoms-
for-peace exhibit at Tehran on March 6.

The agreement was signed by Ali Amini, the
Iranian Ambassador to the United States, I^ewis
L. Strauss, Chairman of the U.S. Atomic Energy
Commission, and William M. Eountree, Assistant
Secretary of State.

Under the proposed agreement, the Govern-
ment of Iran will receive information as to the
design, con.struction, and operation of research
reactors and their use as research development
and engineering tools. It is contemplated that
private American citizens and organizations
would be authorized to supply to the Government
of Iran, or to authorized private persons under its
jurisdiction, appropriate equipment and service.

The proposed agreement further provides that
the U.S. xVtomic Energy Commission will lease
to the Government of Iran for use in research
reactors up to 6 kilograms (1.^.2 ))0unds) of con-
tained U-235 in uranium enriched up to a maxi-
mum of 20 percent U-235. Iran assumes respon-
sibility for using and safeguarding the fissionable
material in accordance with the terms of the pro-
posed agreement. The agreement provides for
the exchange of unclassified information in the
research reactor field, related health and safety
problems, and the use of radioactive isotopes in
physical and biological research, medical therapy,
agrii'iilture, and industry.

Ijooking to the future, the agreement expresses
the hope and expectation of the parties that this
initial agreement for cooperation will lead to con-
sideration of further cooperation at some future
date in an agreement in the field of nuclear power.

This proposed cooperative agreement will en-

April 75, 1957

629

able the Iranians to enhance their own country's
training and experience in nuclear science and
engineering for the development of peaceful uses
of atomic energy within the framework of the
atoms-for-peace program. Students from Iran
have been among the enrollees from many nations
attending the reactor technology courses at the In-
ternational School for Nuclear Science and Engi-
neering operated for the U.S. Atomic Energy
Commission by the Argonne National Laboratory
in cooperation with Pennsylvania State Uni-
versity and North Carolina State College.

Under the provisions of the U.S. Atomic En-
ergy Act of 1954, certain procedural steps must
be taken by the executive and legislative branches
of the U.S. Government before the agreement
may enter into force. The agreement must also
be ratified by the Iranian Parliament.

Current Actions

MULTILATERAL

Postal Services

Universal postal convention, with final protocol, annex,
re'-rulations of execution, anO i)rovisions regardins air-
mail and final protocol thereto. Signed at Brussels
Julv 11, 10.52. Entered into force July 1, 1953. TIAS
2800.
Ratification deposited: Ethiopia, February 22, 1957.

United Nations

Charter of the United Nations and Statute of the Inter-
national Court of .Justice. Signed at San Franci-sco
.Tune 26. 1945. Entered into force October 24, 1945.
!59 Stat. 1031.
Admission to membership: Ghana, March 8, 1957.

at Dublin March 16, 19.57. Enters into force on date
of i-eceipt of notification by Ireland that implementing
procedures have been completed.

Japan

Protocol supplementing the convention for avoidance of
double taxation and prevention of fiscal evasion with
respect to taxes on income of April 16, 1954 (TIAS
3176). Signed at Tokyo March 23, 1957. Enters into
force on date of exchange of written notifications of
ratification or approval.

Netherlands

Agreement extending the agreement relating to American
war graves in the Netherlands of April 11, 1947 (TIAS
1777). Effected by exchange of notes at The Hague
January 14 and August 29, 1955, and March 9, 1956.
Entrii into force: March IS, 19.57.

Thailand

Agreement amending agreement for cooperation concern-
ing civil uses of atomic energy of March 13, 1956 (TIAS
3-522). Signed at Washington March 27. 1957. Enters
into force on date on which each Government receives
from the other written notification that it has complied
with statutory and constitutional requirements.

United Kingdom

Agreement amending agreement for sale of tobacco to the
United Kingdom and the construction of military hous-
ing and community facilities for use of the United
States Air Force of June 5, 1956 (TIAS 358S) . Effected
by exchange of notes at London March 13, 1957. En-
tered into force March 13, 1957.

Yugoslavia

Ai;reenient amending the agricultural commodities agree-
ment of November 3, 19.56 (TIAS 368'^). Effected by
exchange of notes at Washington March 22, 1957. En-
tered into force March 22, 1957.

DEPARTMENT AND FOREIGN SERVICE

BILATERAL

Chile

Agreement for the establishment and operation of rawin-
sonde ob.servation stations at .\ntofagasta, Quintero,
and Puerto Montt, Chile. Effected by exchange of
notes at Santiago March 1, 1957. Enters into force
on date of signature of an arrangement embodying the
technical details.

Iceland

A

iz

Key

ruary 23, 1957

Ireland

Agreement for an educational exchange program.

Hand

Tcement for a program of educational exchanges author-
ized by the Fulbright Act (60 Stat. 7.54). Signed at
Heykjax ik February 23, 1957. Entered into force Feb-

Signed

Confirimatioris

The Senate on March 22 (legi.slative day of March 21)
confirmed Andrew H. Berding to be an Assistant Secre-
tary of State. (For biographic details, see press release
101 dated March 1.)

The Senate on March 28 confirmed Philip W. Bonsai
to be Ambassador to Bolivia. (For biographic details,
see press release 159 dated March IS.)

The Senate on March 28 confirmed John Clifford Folger
to be Ambassador to Belgium. (For biographic details,
see press release 146 dated Mai'ch 14.)

The Senate on March 2S coiifinned Philip Young to be
-\mba.ssador to the Netherlands. (For biographic de-
tails, see press release 162 dated March 19.)

630

Department of State Bulletin

April 15, 1957

Index

Vol. XXXVI, No. 929

Agriculture. Question of V.S. Ajutnival of Tlaut

I'rotettion (, ouveution (PliillipsJ 627

American Republics. Secretary Dulles' News Con-

fereute oi March 26 595

Atomic Energy

Atoius-for-Peace Agreement With Irau .... 629
Secretary Dulles' News Conference of March 26 . 595
Statute of International Atomic Energy Agency
Transmitted to Senate (Eisenhower, Dulles,
FernanUez-Moran, summary of statute) .... 61.")

Belgium. Folger confirmed as ambassadoi- . . . 630

Bolivia. Bonsai confirmed as ambassador .... 6i;u

China, Communist

Secretary L)ulles' News Conference of March 26 . . .595
Secretary Dulles Writes Foreword for New Editions

of War or Peace GOl

Communism. Secretary Dulles Writes Foreword

for New Editions of War or Peace 601

Congress, The

Amendment to Anclo-American Financial Agree-
ment of 1945 (Kalijarvi) 625

Congressional Documents Relating to Foreign

Policy 629

Question of U.S. Approval of Plant Protection Con-
vention (Phillips) 627

Statute of International Atomic Energy Agency
Transmitted to Senate ( Ei.senhower, Dulles,
Ferniindez-Moran, summary of statute) .... 615

Department and Foreig^n Service. Confirmations

(Herding, Donsal, Folger, Young) 6.'?0

Dominican Republic. U.S. Asks Dominican Gov-
ernment To Reopen Gsrald Murphy Case . . . 610

Economic Affairs. Amendment to Anglo-American

Financial Agreement of 1945 (Kalijarvi) . . . 625

Educational Exchange. Polish Coal Mining Officials

Visit United States 611

Egypt. Secretary Dulles' News Conference of

March 26 595

Germany, East. The Soviet-Occupied Zone of Ger-
many : A Case Study in Communist Control
(Eleanor Dulles) 605

International Organizations and Conferences

International Cooperation in Climatology (Lands-
berg) 612

Statute of International Atomic Energy .\gency
Transmitted to Senate ( Eisenhower, Dulles,
Fern;lndez-Moran, summary of statute) . . . 615

Iran. Atoms-for-Peaee Agreement With Iran . . 629

Israel. Secretary Dulles' News Conference of

Jlarch 26 .595

Korea. Secretary Dulles Writes Foreword for New

Editions of War or Peace 601

Middle East. Secretary Dulles' News Conference

of March 26 595

Military Affairs

Deployment of Ballistic Missiles In United King-
dom (Hagerty) 596

Secretary Dulles' News Conference of March 26 . 595

Mutual Security. Secretary Dulles Writes Fore-
word for New Editions of War or Peace . . . 601

Netherlands. Young confirmed as ambassador . . 6.30

Poland

Polish Coal Mining Officials Visit United States . 611
Secretary Dulles' News Conference of March 26 . 595

Presidential Documents. Statute of International

Atomic Energy Agency Transmitted to Senate . 615

Science. International Cooperation in Climatology

(Laudslierg) 612

Treaty Information

Amendment to Anglo-.\mericau Financial Agree-
ment of 1045 (Kalijarvi) 625

Atoms-t'or-1'eace Agreement With Iran 629

Current Actions 630

Question of U.S. Approval of Plant Protection Con-
vention (Phillips) 627

Statute of International Atomic Energy Agency
Transmitled to Senate (Eisenhower, Dulles,
Fernandez-Morfin, summary of statute) .... 615

U.S.S.R. The Soviet-Occupied Zone of Germany :
A Case Study in Communist Control (Eleanor
Dulles) 605

United Kingdom

Amendment to .\nglo-American Financial Agree-
ment of 1945 (Kalijarvi) 625

Deployment of Ballistic Missiles in United King-
dom (Hagerty) 596

Secretary Dulles' News Conference of March 26 . 595

United Nations

C'urrent U.N. Documents 614

International Cooperation in Climatology (Lands-
berg) 612

Secretary Dulles Writes Foreword for New Editions
of War or Peace 601

Statute o( International Atomic Energy Agency
Transmitted to Senate (Eisenhower, Dulles,
Fernandez-Moran, summary of statute) .... 615

Venezuela. Statute of International Atomic Energy
.^Liency Transmitted to Senate (Eisenhower,
Dulles, Fernandez-Moran, summary of statute) . 615

Xante Index

Berding, Andrew 11 630

Bonsai, Philip W 630

Dulles, F.leanor 605

Dulles, Secretary 595, 601, 616

Eisenhower, President 615

Pernandez-Morrm, Ilumberto 625

Folger, John Clifford 630

Hagerty, .lames C 59(5

Kalijarvi, Thorsten V 625

Landsherg, Helmut E 612

Murphy, Gerald Lester 610

Phillii)S, Christopher U 627

Young, Philip 630

Check List of Department of State
Press Releases: March 25^31

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

I'ress releases issued prior to March 25 which
appear in this issue of the Bulletin are Nos. 116
of .March 6, 147 of March ]5, 150 of March 16, 157
of March 10, and 165 of JIarch 21.

No. Date Subject

174 3/26 Eleanor Dulles: "The Soviet Occupied
Zone of Germany."
175 .3/26 r)ulles : news conference.
tl76 3/28 Communique on U.S.-Iranian talks.
tl77 3/28 Delegation to ICEM Council (re-
write).
tl78 3 28 Murder of Americans in Iran.
179 3/29 Dulles : foreword for new editions
of War or Peace.

illeld for a later issue of the Bulletin.

U. S. GOVERNMENT PAINTING OFFICE: 1957

Department

of

State

United States
Government Printing Office

DIVISION OF PUBLIC DOCUMENTS

Washington 25, D. C.

PENALTY FOR PRIVATE USE TO AVOID

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(GPOl

OFFICIAL BUSINESS

NATO — Its Development and Significance

The growth and accomplishments of the North Atlantic Treaty
Organization from the signing of the North Atlantic Treaty on
April 4, 1949, to the present time are described in this 61-page
pamphlet, a recent publication of the Department of State.

The topics discussed include :

America's Interest in the North Atlantic Treaty
Origin of the North Atlantic Treaty
Purposes and Activities of Nato
Organization of Nato
U.S. Contributions to Nato
Nato Accomplishments
The Future of Nato

Two appendixes carry the text of the Repoit of the Committee
of Tliree on Non-Military Cooperation in Nato and the text of
the North Atlantic Treaty.

Copies of NATO — Its Development and /Significance may be
purchased from the Superintendent of Documents, U.S. Govern-
ment Printing Office, Washington 25, D.C., for 30 cents each.

Publication 6467

30 cents

Please send me copies of NATO — Its Development and

Significance.
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Enclosed find:

(cash, check, or
money order).

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 930

AprU 22, 1957

HE

THE EMERGENCE OF AFRICA • Report to President

Eisenhower by Vice President Nixon 635

SECRETARY DULLES' NEWS CONFERENCE OF

APRIL 2 641

BUILDING FOR PEACE • by Deputy Under Secretary

Murphy 647

ADVANTAGES TO THE UNITED STATES OF MEM-
BERSHIP IN PROPOSED ORGANIZATION FOR

TRADE COOPERATION • Message of President
Eisenhower to the Congress 657

PRINCIPLES OF U.S. FOREIGN ECONOMIC POLICY •

Statement by Thorsten V. Kalijarvi 659

LIMITATIONS ON TRAVEL OF AMERICAN CITIZENS
ABROAD AND ON CULTURAL EXCHANGES •

Statements by Deputy Under Secretary Murphy and Robert

F. Cartwright 663

■

For index see inside back cover

THE DEPARTMENT OF STATE

Vol.. XXXVI, No. 930 • Publication 6480
AprU 22, 1957

For sale by the Superintendent of Documents

U.S. Government Printing Office

Washington M, D.C.

Pbicb:

S2 Issues, domestic $7.60, foreign $10.25

Single copy, 20 cents

The printing of thb publication has been
approved by the Director of the Bureau of
the Budget (January 19, 1965).

Note: Contents of this publication are not
copyrighted and ltoin.i conUilned her^-ln may
be reprinted Citation of the Dkpaktuent
OF Statb Bulletin as the source will be
appreciated.

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the work of the
Department of State and the Foreign
Service. The BULLETIN includes se-
lected press releases on foreign policy,
issued by the White House and the
Department, and statements and ad-
dresses made by the President and by
the Secretary of State and other
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 tlic United States is or may
become a party and treaties of gen-
eral international interest.

Publications of the Department,
United Nations documents, and legis-
lative nuiterial in the field of inter-
national relations are listed currently.

The Emergence of Africa

REPORT TO PRESIDENT EISENHOWER BY VICE PRESIDENT NIXON

On the basis of my visits to Morocco, Ghana,
Liberia, Uganda, Ethiopia, Sudan, Libya, Italy,
and Tunisia, from February 28 to March 21,
1 submit the following observations and
recommendations :

IMPORTANCE OF AFRICA

No one can travel in Africa, even as briefly as
I did, without realizing the tremendous potentiali-
ties of this great continent. Africa is the most
rapidly changing area in the world today. The
course of its development, as its people continue to
emerge from a colonial status and assume the re-
sponsibilities of independence and self-govern-
ment, could well prove to be the decisive factor in
the conflict between the forces of freedom and in-
ternational communism.

The leaders and peoples of the coimtries I
visited in Africa have many things in common.
They cherish their independence, which most of
them have only recently acquired, and are deter-
mined to protect it against any form of foreign
domination. They rightfully expect recognition
from us and others of their dignity and equality
as individuals and peoples in the family of na-
tions. They Mant economic progress for their un-
developed economies.

The great question which is presented to the
leaders of Africa is whether they can attain these

' Issued by the White House for release on Apr. 7. For
backgrouud, see Bulletin of Mar. 4, 1957, p. 34S, and Mar.
18, 1957, p. 436.

justifiable objectives and at the same time main-
tain and develop governmental institutions which
are based on principles of freedom and democracy.
I believe they all are convinced that they can, and
that the Free World has a vital interest in assist-
ing them to do so. For the success or failure of
these new members of the family of nations to
realize their aspirations in this manner will have
profound effects upon the development of Africa
and on the world in the years to come.

Herein lies the wider significance of the emer-
gence of the new nation of Ghana. The eyes of the
peoples of Africa south of the Sahara, and of
Western Europe particularly, will be upon this
new state to see whether the orderly transition
which has taken place from dependent to inde-
pendent status, and whether the retention of close
ties on a basis of equality with the British Com-
monwealth, will continue to work successfully and
thereby present a fonnula of possible application
in other cases. By the same token, inimical forces
will be closely following the situation to see
whether any openings present themselves for ex-
ploitation in a manner which would enable them
to disrupt and destroy the independence which
Ghana seeks to achieve.

Nor is this a situation peculiar to Ghana. The
same factors are present everywhere among the
independent states which I visited. Africa is
emerging as one of the great forces in the world
today. In a world in which, because of advances
in technology, the influence of ideas and principles
is becoming increasingly important in the battle
for men's minds, we in the United States must

April 22, 1957

635

come to know, to understand and to find common
ground with the peoples of this great continent.
It is in this context that the recommendations in
this report, together with others previously made
to the appropriate government agencies, are
presented.

Appraisal of African Leadersliip

Africa is producing gxeat leaders, dedicated to
the principles of independence, world responsi-
bility and the welfare of their peoples. Such men
as the Sultan of Morocco, Prime Minister Nkru-
mah of Ghana, President Tubman of Liberia, the
Emperor of Ethiopia, and Prime Ministers Ab-
dullah Khalil of the Sudan, Ben Halim of Libya
and Habib Bourguiba of Tunisia, certainly com-
pare most favorably with the gi'eat leaders of the
world. Nor should one omit King Idris of Libya,
whom I unfortunately missed seeing on this trip
because of an engine failure, but whose wisdom
and statesmanship I remember most vividly from
my previous trip to that country in. 1953. These
are all men who command respect beyond the bor-
ders of their own country. They are backed up by
other equally dedicated leaders who have much to
contribute both to the problems of their own coun-
tries and to those which plague the world today.

Recommendation

The United States must come to know these
leaders better, to miderstand their hopes and as-
pirations and to support them in their plans and
progi-ams for strengthening their own nations and
contributing to world peace and stability. To this
end, we must encourage the greatest possible inter-
change of persons and ideas with the leaders and
peoples of these countries. We must assure the
strongest possible dii)lomatic and consular repre-
sentation to those countries and stand ready to
consult these countries on all matters affecting
their interests and ours.

Attitudes Toward tlie United States

There is no area in the world today in wliich
the prestige of the United States is more uni-
formly high than in the countries which I visited
on this trip. The President is respected as the
acknowledged leader of the Free World. There
is a most encouraging understanding of our pro-
grams and policies. These countries know that
we have no ambitions to dominate and that the

cornerstone of our foreign policy is to assist coun-
tries in resisting domination by others. They
understand that the United States stands on prin-
ciple and that this was the motivating force, for
example, which led us to act as we did in the re-
cent Suez crisis. They approve the stand which
we took at that time and look confidently to us to
act consistently with that stand in the future.
They understand that the American Doctrine for
the Middle East is dedicated to the principle of
assisting the states of the Middle East to main-
tain their independence. They know that the
United States stands for the evolution of depend-
ent peoples toward self-government and independ-
ence, as they become able to discharge the responsi-
bilities involved.

Recommendation

This understanding of the principles for which
we stand as a nation is a tremendous asset to us in
this area. The maintenance of the present liigh
prestige we are fortunate to have in Africa will
depend upon whether the people of the Continent
continue to understand our dedication to the prin-
ciples of independence, equality and economic
progress to which thej^ are so deeply devoted. We
must staff our diplomatic and information estab-
lisliments in these countries with men and women
capable of interpreting and explaining our poli-
cies and actions in a way which will guarantee that
they are so understood.

Effect of Discrimination in U.S. on African Attitudes

As a result of skillful propaganda primarily
inspired by the enemies of freedom, a consistently
distorted jjicture of the treatment of minority
races in the United States is being effectively pre-
sented in the countries I visited. Every instance
of prejudice in this country is blown up in such
a manner as to create a completely false impres-
sion of the attitudes and practices of the great
majority of the American people. The result is
irreparable damage to the cause of freedom Avhich
is at stake.

Recommendation

We must continue to strike at the roots of this
problem. We cannot talk equality to the peoples
of Africa and Asia and practice inequality in the
United States. In the national interest, as well as
for the moral issues involved, we must support

636

Department of State Bulletin

the necessary steps which will assure orderly prog-
ress toward the elimination of discrimination in
the United States. And we should do a far more
effective job than we are presently doing in telling
the true story of the real progress that is being
made toward realizing this objective so that the
people of Africa will have a true picture of con-
ditions as they really are in the United States.

Economic Assistance

All of the African states which I visited are
underdeveloped. Most of them have great eco-
nomic potential. Their leaders are anxious to
strengthen the economies of their countries in
order to assure for their peoples a larger share of
the advantages of our modern civilization. They
seek economic as well as political independence
insofar as this is possible in the world of today.

Their needs are great in terms of education and
public health. They require roads and other com-
munications in order to open inaccessible parts of
their territory to economic development. They
need agricultural development to sustain their ex-
panding populations. They want assistance in
developing their great mineral and forest re-
sources. They foresee great opportunities for de-
veloping small industrial enterprises. In most
cases, these developmental needs are beyond their
capacity to finance.

All of the leaders with whom I talked expressed
preference for developing their economies through
encouraging the investment of private capital and
through loans from international agencies such as
the World Bank where feasible rather than
through government-to-government grants. It
can truly be said that the welcome sign is out for
investment of foreign private capital in Africa.
African leaders are aware of the great role that
such private capital can play in the development
of their countries and many of them have adopted,
or are in the process of adopting, special legisla-
tion designed to create an atmosphere conducive to
expanded foreign investment.

Recommendation

Consistent with the desires of African leaders,
the United States Government through its agen-
cies should, as appropriate, draw the attention of
private American capital to opportunities for in-
vestment in those areas where the conditions for
such investment are propitious. Strengthening
the economic sections of American Embassies in

this area is needed if this objective is to be carried
out.

We should support applications before the ap-
propriate international agencies for financing
sound economic development projects in the
area.

To the extent that our resources and the de-
mands of other areas permit, we should extend
economic and technical assistance to the countries
of Africa in helping them to further their eco-
nomic development.

In this connection, I think it is appropriate to
place in proper context the United States eco-
nomic assistance programs. These programs
should be approved only when they are in the
mutual interests of the United States and the re-
cipient country. They should be administered as
efficiently as possible.

But while these progi'ams should be constantly
re-examined and improved so that they can better
serve the national interest, shotgim attacks on our
foreign assistance programs as such cannot be
justified.

In this connection, I believe a comment on what
has happened in Italy is pertinent. Wliile my
visit to Italy was not on an official basis, I did have
the opportunity to discuss economic and political
problems with President Gronchi, Prime Minister
Segni and other Italian officials. It was signifi-
cant to me that at the time I arrived in Italy, the
last American aid office was being closed. I re-
called that ten years before when I visited Italy
as a member of the Herter Committee on Foreign
Aid, the most dire predictions were being made as
to the future of the Italian economy. It was said
that American assistance would be thrown down
a rat hole, that the Italian people should live with-
in their own means, that they should work harder,
and that in any event, once the economic program
began, we would never see the end of it. The fact
that Italy today has one of the soundest, most
productive economies in Europe is eloquent proof
of the validity of economic assistance properly ad-
ministered and properly used by the recipient
country.

Wliile the economic problems of Italy were ob-
viously different from those Africa now faces, I
am confident that in the African countries I
visited, we shall have similar success as we work
in cooperation with the enlightened leaders of
these nations towards the development of their
great natural and human resources.

April 22, J 957

637

Special Relations With Other Countries

Africa and Europe have much in common. To
a large extent, their economies are complemen-
tary. Certain of the independent states on the
African continent maintain close ties of an his-
torical, cultural and economic nature with the
states of Europe. The maintenance of these rela-
tionships, on a basis of equality, can greatly bene-
fit botla Africa and Europe.

Recominendation

We should encourage the continuance of tliese
special ties where they are considered mutually
advantageous by tlie states concerned. "We should
take them in account in formulating our own
policies to the extent compatible with the funda-
mental requirement of conducting our own rela-
tions with those states on a fully equal and inde-
pendent basis.

Tlie task of providing the economic assistance
whicli is needed by the newly independent coun-
tries of Africa cannot be done by the United States
alone. We should make it clear that we desire no
exclusive position in any country in that area and
that we want to work with otlier Free World na-
tions in providing the assistance which will build
strong, free, and independent nations in this area
of the world.

Communism

Africa is a priority target for the international
communist movement. I gathered the distinct
impression that the communist leaders consider
Africa today to be as important to their designs
for world conquest as they considered China to
be twenty-five years ago. Consequently, they are
mounting a diplomatic propaganda and economic
offensive in all parts of the continent. They are
trying desperately to convince the peoples of
Africa that they support more strongly than we
do their natural aspirations for independence,
equality and economic progress.

Fortunately, their efforts thus far have not been
generally successful and, for the present, com-
munist domination in the states of the area is not
a present danger. All of the African leaders to
whom I talked are determined to maintain their
indoi)endence against communism or any other
form of foreign domination. They have taken
steps to bring under control tlie problem of com-
munist subversion of their political, economic and

social life. It would be a great mistake, however,
to be complacent about this situation because the
Communists are without question putting their
top men in the fields of diplomacy, intrigue, and
subversion into the African area to probe for open-
ings wliich they can exploit for their own selfish
and disruptive ends.

Recommendation

The communist threat underlines the wisdom
and necessity of our assisting the countries of
Africa to maintain their indej^endence and to
alleviate the conditions of want and instability
on which communism breeds. The importance of
Africa to the strength and stability of the Free
World is too great for us to underestimate or to
become complacent about this danger without tak-
ing every step within our power to assist the coun-
tries of this area to maintain their effective inde-
pendence in the face of this danger.

Trade Unionism

In every instance where my schedule permitted,
I made it a point to talk to the leading labor lead-
ers of the countries I visited. I was encouraged
to find that the free trade union movement is
making great advances in Africa, particular^ in
Ghana, Morocco, and Tunisia. The leaders of
these countries have recognized the importance
of providing an alternative to communist dom-
inated unions and they, thereby, are keeping the
Communists from getting a foothold in one of their
favorite areas of exploitation. In this connec-
tion, I wish to pay tribute to the effective support
that is being given by trade unions in the United
States to the free trade union movement in the
countries which I visited. These close and mutu-
ally advantageous relationships are in the national
interest as well as in the interest of developing a
strong labor movement.

Recommendation

It is vitally important that the United States
Government follow closely trade union develop-
ments in the Continent of Africa and that our dip-
lomatic and consular representatives should come
to know on an intimate basis the trade union
leaders in these countries. I believe, too, that
American labor unions should continue to main-
tain close fraternal relationships with tlie African
free trade union movement in order that each may

638

Department of State Bulletin

derive the greatest possible advantage of the wis-
dom and experience of the other.

Nile Development

The Nile is one of the world's greatest inter-
national rivers. Perhaps in no other part of the
world are the economies of so many states tied to a
particular waterway. The river is so located
geographically that whatever projects are under-
taken on it within the territorial domains of one
state are boxnid to have their effect on the econo-
mies of other states.

Recommendation

The United States must take into account the
common interests of the riparian states in the de-
velopment of this great river and, at such time as
political conditions permit, should support a co-
operative approach to its development which
would accord with the common interests of all the
states involved.

Operation of United States Programs

Specific recommendations as to the operation of
American programs in the countries I visited have
been made on a classified basis to the various in-
terested agencies. In general, I found that our
political, economic and information programs in
the countries which I visited, are being adminis-
tered in accordance with our obligations to the
United States taxpayer. There is, however, al-
ways room for improvement and, in the spirit of
constructive criticism, I wish to make the follow-
ing public recommendations.

Recommendations

On the political side, I believe that our diplo-
matic and consular missions are generally under-
staffed. We must assure that these establishments
have sufficient personnel to enable them to inter-
pret our policies, to consult fully with the local
governments on matters of mutual interest and to
report on developments of importance to the
United States. We must assure that our diplo-
matic and consular offices have sufficient funds to
enable them to travel about the vast territories
within their jurisdiction for the purposes of re-
porting on developments outside the major centers
of population and of forming contacts with the
peoples of those areas. We must recognize that
the posts in this area are, in many instances, un-

healthful and trying climatically to those who are
raised in a temperate zone. We must, therefore,
endeavor to ameliorate hardship conditions for our
personnel in order to enable them more effectively
to perform their tasks. We must recognize that
the importance of the African area and the difficult
living conditions there necessitate our assigning
officials of the highest possible competence and
stability. The emphasis should be on youth, vigor
and enthusiasm.

Insofar as our economic programs are con-
cerned, I believe that our technicians in the field
are doing an excellent job in working alongside
the African and teaching him to perform the
various fimctions of social and economic develop-
ment for himself. Obviously, the maintenance and
support of these tecluiicians in the field require
a headquarters staff in the country capitals. From
my own observations, I believe these headquarters
staffs sometimes tend to become inflated and I,
therefore, recommend that they be carefully re-
viewed to see whether economies in personnel could
not be effected. I believe also that there is some-
times a tendency to scatter programs over a
number of fields of economic and social develop-
ment, whereas greater concentration on a few
key projects would bring more lasting returns to
the country concerned. Our programs should con-
stantly be reviewed from this point of view. The
same comments which I made with respect to the
calibre of our diplomatic and consular representa-
tion apply as well to our economic and informa-
tion personnel.

On the informational side, I believe that the
most worthwhile projects are the libraries and
reading rooms which we have established in a
number of centers overseas and the exchange of
persons programs. The funds available for these
programs in the African area should be substan-
tially increased over the present level.

To the extent that the Africans become familiar
with the culture and technology, the ideals and
aspirations and the traditions and institutions
which combine to make up the American charac-
ter, we shall have made great advances in com-
mon understanding. This can be done through
books and periodicals, through student exchanges
and through the leader grant program for bring-
ing outstanding Africans to the United States for
study and travel. We should also assist as we
can in the development of indigenous educational

April 22, ?957

639

facilities in Africa. In this way, we can get to
know them and they to know us.

I believe that the information output from our
radio and news programs in the African area have
in the past not been as effective as they should be
if we are adequately to counter the propaganda
being disseminated by the Communists. In the
studies which are currently being made of these
progTams by the Usia, I believe it is important
that the highest priority be assigned to this area
both as to improving the quality of personnel in
the field and in more adequately providing infor-
mation which is particularly suited to the special
problems of Africa.

M. Rene Mayer

To Visit Wasliington

Press release 180 dated April 1

The President of the High Authority of the
European Commimity for Coal and Steel, Rene
Mayer, who is in this country for the conclusion
of negotiations for a loan to be issued by the Com-
mmiity on the United States financial market, will
pay a brief informal visit to Washington on April
2 and 3. During his stay he will call on the Secre-
tary of State, the Secretary of Commerce, and
other members of this Government.

CONCLUSION

For too many years, Afi-ica in the minds of
many Americans has been regarded as a remote
and mysterious continent which was the special
province of big-game hunters, explorers and mo-
tion picture makers. For such an attitude to exist
among the public at large could greatly prejudice
the maintenance of our own independence and
freedom because the emergence of a free and in-
dependent Africa is as important to us in the long
run as it is to the people of that continent.

It is for this reason that I strongly support the
creation within the Department of State of a new
Bureau of African Affairs which will place this
continent on the same footing as the other great
area gi-oupings of the world. I recommend simi-
lar action by the Ica and Usia. These bureaus,
properly staffed and with sufficient funds, will
better equip us to handle our relationships with
the countries of Africa. But this in itself will
not be enough. There must be a corresponding
realization throughout the executive branches of
the Government, throughout the Congress and
throughout the nation, of the growing importance
of Africa to the future of the United States and
the Free World and the necessity of assigning
higher priority to our relations with that area.

Eiglith Anniversary of NATO

Statement by President Eisenhower

White House press release dated April 4

Today is the eighth anniversary of the signing
on April 4, 1949, here m Washington of the
North Atlantic Treaty.

Since the mception of Nato, the member coun-
tries, by dedicated cooperative effort, have de-
veloped a strong defensive shield which has been
a major factor in maintaining the peace in
Europe.

The cooperative efforts of the Nato nations
have now been extended beyond the field of mili-
tary activity. The feeling has steadily grown
among the governments and people of the Nato
countries that increased unity among them is both
natural and desirable. In the face of an un-
changing challenge to their traditions and indeed
their very freedom, they have agreed to work
together on an ever-widening range of problems.
Thus, the Atlantic Community will continue to
grow in unity and in strength. Personally and
officially I shall do everything in my power to
assist in this further development.

640

DeparfmenI of Sfofe Bulletin

Secretary Dulles' News Conference of April 2

Press release 184 dated April 2

Secretary Dulles: I am available to answer
questions.

Q. Mr. Secretary, has the United States given
any gxuiranties to Chiang Kai-shek that it will
help defend Qiiemoy and Matsu in the event of
attack?

A. No. The only commitments of the United
States are as authorized in the act of Congress
which calls for the defense of Formosa (Taiwan)
and the Pescadores (Penghu) area, and of other
related areas if their defense is connected with the
defense of Taiwan and Penghu. ^ That decision
will be made by the President, when the circum-
stances call for it.

Q. Was there ever a secret letter sent to Chiang
Kai-sheh which might have raised some question
on this point?

A. Well, I wouldn't want to say there had never
been any private communication between the Pres-
ident and the heads of other governments. He has
quite an extensive correspondence of that kind,
and that is a matter which is within his jurisdic-
tion and on which I won't comment.

Q. Well, Mr. Secretary, do you know anything
abaut a personal assurance from President Eisen-
hower on this point that might have satisfied
Chiang Kai-shek that the United States would de-
fend those two islands?

A. I'm quite coiifident that there is nothing be-
yond what I have described. Obviously, that de-
scription which I have given implies that under
certam conditions we would go to the defense of
the offshore islands; that is, if their defense
seemed related to the defense of Taiwan and
Pengliu.

^ For text of H. J. Res. 159, 84th Cong., 1st sess., see
Bui-LETIN of Feb. 7, 1955, p. 213.

April 22, J 957

Q. Mr. Secretary, is it fair to say then, on the
basis of lohat you have told us, that there is no
American commitment of any kind implicit or ex-
plicit, stated or implied, to defend these islands
beyond the actual language of the congressional
resolution?

A. That is correct.

Q. Mr. Secretary, would you comment on the
statement of your most recent biographer to the
effect that the withdrawal of the Aswan Dam offer
to Mr. Nasser was a truly major gambit in the cold
war?

A. I don't care to comment on articles written
about me. If there are any subjects that, as a re-
sult of such writing, seem to merit your question-
ing me, I'm glad to answer your questions on their
merits but not in terms of what may have been
written about me.

Canceling OHer of Aid on Aswan Dam

Q. Mr. Secretary, let us put it this way: Did
you make a decision to cancel the offer of aid on
the Aswan Dam in order to force a showdown with
the Soviet Union in the Middle East?

A. I think that question could be answered in
the negative. There were, of course, a number of
reasons which dictated our declining to go ahead
with the Aswan proposal.

There was, perhaps first of all and most impera-
tive, the fact that the Appropriations Committee
of tlie Senate had unanimously passed a resolu-
tion providing that none of the 1957 funds could
be used for the Aswan Dam.

There was the fact that we had come to the feel-
ing in our own mind that it was very dubious
whether a project of tlris magnitude could be
carried through with mutual advantage. It is a
tremendous project, involving an estimated bil-
lion and a half dollars— probably it would cost

641

more than that. And the Egyptian component
of that, in terms of domestic currency and effort,
would involve a gigantic effort and call for an
austerity program over a period of 12 to 15 years.
Undoubtedly, that would be a burden and cause
of complaint on the part of the Egyptian people,
and probably the responsibility for that would be
placed upon the foreign lenders and they would
end up by being disliked instead of liked.

Then there was the further fact that the Egyp-
tians had during the immediately preceding
period been developing ever closer relations with
the Soviet-bloc countries. Only a few days before
I was asked for a definitive answer by the Egyp-
tians, they had recognized Communist China —
being the first Arab nation to do so. And, indeed,
it became, I think, the first nation in the world to
do so since the attack on Korea.

And in that way the Egyptians, in a sense,
forced upon us an issue to which I think there was
only one proper response. That issue was, do
nations which play both sides get better treatment
than nations which are stalwart and work with us ?
That question was posed by the manner in which
the Egyptians presented their final request to us,
and stalwart allies were watching very carefully
to see what the answer would be — stalwart allies
which included some in the same area.

Under all the circumstances I think there was
no doubt whatsoever as to the propriety of the
answer given. It was given in a courteous manner,
as j'ou will find if you will go back and reread the
statement which was given out at the time, which
reaffirmed our friendship for the Egyptian people
and indicated our willingness in other ways to try
to assist the Egyptian economy.^

Current Negotiations on Canal

Q. Mr. Secretary, to bring this discussion up to
date, what can you, tell us about the status of the
negotiations over the canal — lohether there has
been any response to our response to the Egyptian
memorandum,^ and what you consider to be the
outlook for a settlement based on the six principles
of the United Nations?

A. We presented our views on Simday [March
31], I think it was, indicating what we thought
was necessary in order to bring the so-called draft

' Ihid., July .".0, 195G, p. 1S8.
'Not printed.

memorandum into line with the Security Council
action. The Security Council had, last October,
said that any settlement ought to meet certain
specified requirements, and then it listed six re-
quirements of any settlement. It seemed to us that
the so-called draft memorandum fell short of
meeting those requirements. We pointed out to
the Government of Egypt the respects in which it
did, in our opinion, so fall short and ways by
which that shortfall might perhaps be remedied.
We have had no response, as yet, from the Egyp-
tian Government.

Q. Can you tell us any of those points, especially
how if one of the shortfalls, in fact the question of
the binding nature of this document — how you
would propose to make it an international obliga-
tion on all countries involved?

A. WeU, one of the weaknesses is the fact that,
even though perhaps the Egyptians intended this
to constitute an international obligation, our law-
yers are not at all sure that they did in fact produce
that result but that it may be merely a unilateral
statement subject to unilateral change at any time,
without any right on anybody's part to prevent
that.

Now we believe that it can, with some rather
minor word changes, be converted into a multi-
lateral obligation by perhaps some such measure
as filing it with the United Nations and providing
that any nation which files an acceptance of it shall
thereby gain rights under it. There are various
ways in which I think that could be done; I am
not at all sure that the Egyptians did not by their
original draft intend some such result. But, if so,
I do not think they made their intent adequate
from the legal standpoint.

Use of Canal by Israel

Q. Mr. Secretary, has Israel informed this
Government that it will try to send a ship through
the Suez Canal, and, if it does make this attempt,
can you tell us what the American Govemment''8
attitude ivill be?

A. I am not aware of our being officially advised
in the sense that you mentioned, although it is pos-
sible that in the course of conversations with some
of my associates such an intent may have been in-
dicated. I just don't know about that. I would
point out that, at the time of the withdrawal of

642

Department of State Bulletin

Israeli forces and at the time of the discussions
which preceded that, tlie empliasis of the Govern-
ment of Israel in their communications with the
United States was upon the situation of the Gulf
of Aqaba and the situation in the Gaza Strip.
Prime Minister Ben-Gurion's letter to President
Eisenhower did not mention the Suez Canal.
Nevertheless, they and we do believe that every
country has a right to send its ships and cargoes
through the Suez Canal. Our belief was reflected
by the Security Council decision of '51, where the
United States voted in that sense as a member of
the Security Council, and we continue to adliere to
that view.

Q. Mr. Secretary, do you have any indication at
all from sources in Egypt that Egypt may soon
renounce its belligerency against Israel and permit
her ships to go through the canal?

A. No, we have no evidence of that sort. I
believe that that matter is perhaps still under
consideration as a result of the mission of Mr.
Hammarskjold to the area. His public report
did not cover, I think, all of the matters which
he discussed. It does include a report, of course,
on the Gaza Strip, and I want to say that the
United States shares the sentiments of satisfaction
expressed yesterday by his Advisory Committee
consisting of seven important countries. He made
at least some progi'ess in assuring the tranquillity
of the Gaza area and that it will not be a base of
hostile activities — fedayeen activities and the like.

Also, of course, that Committee expressed the
opinion that if, in fact, the measures taken did
not prove adequate in that respect, then the matter
would have to be further considered and request
made for further action. That, however, did not
deal with the belligerency aspect of the matter,
which I think is still in abeyance.

Q. Mr. Secretary, what bargaining powers, if
a7iy, do we still retain in negotiations with Egypt
over Suez and the relations loith Israel? For
instance, you mentioned that some of these changes
in your opinion might he minor. What if Eqypt
chose n-ot to go along with even a minor change?
What if she chose to ignore our invocation of
moral principles in the area? What do we do
then?

A. When I said the changes might be minor,
I did not intend to imply that they would be minor
in their significance. I think they might be minor

in terms of the actual changes in phraseology
that would be required, and, as I say, it may be
that those changes would be in accord with what
Egypt's actual intentions were.

Now, on the question of what pressures we have
to bring to bear, I think the situation basically is
what I described last week when I said that the
problem is one which confronts Egypt itself with
a choice between whether it wishes to try to rees-
tablish the confidence of the world in the depend-
ability of the canal and its availability for use on
the terms contemplated by the 1888 convention or
not. Upon the choice that Egypt makes a great
deal will depend, and a great deal of the future
of Egypt itself will depend upon that. We are
anxious — I think most countries are anxious — to
see developments which will improve and uplift
the economy of Egypt and its Arab neighbors;
and we think it is in the mutual interest that the
interdependence of this area with other areas
should be promoted by sound Egyptian policies.

The United States has no pressures to bring to
bear in terms of military threats or boycotts of
the canal or the like. I think I said that back last
October, September. That remains true today,
and indeed it has been demonstrated, I think, that
nonuse of the canal is not a very profitable opera-
tion from the standpoint of the users. But we
still feel able to entertam hopes, at least, that this
jDroblem will be worked out in a way which we
think is clearly in the interest not only of the
nations which use the canal but in the interest
of Egypt itself.

Q. Mr. Secretary, does one infer correctly from
what you just said that ive toould not participate
in any kind of economic sanctions against Egypt
if the situation deteriorated?

A. I would not say that we would never par-
ticipate in economic sanctions against Egypt.
However, the word "sanctions" is, as I think we
developed in the course of some of om- talks about
Israel, a word of a great many connotations. Tlie
so-called boycotting of the canal, if that is a sanc-
tion, is a matter primarily for the coimtries to de-
cide whose economies depend upon the canal.
United States economy does not depend in any
appreciable degree upon the canal. Other coun-
tries do have a great deal of dependence, and I
think that any initiative in that respect should
come from them and not from us.

April 22, 1957

643

Use of Canal by American Ships

Q. Mi'. Secretary, if American, ships were to
enter the canal zoithin the next few days, would
the Government have any objections if they
turned over in dollars toll payments to the Egyp-
tian Government on Egyptian terms such as they
exist now?

A. Well, the United States ships were, of course,
paying in that way before the canal was closed and
I think have always paid in that way. In that
respect their practice is different from that of the
British and the French. We always paid, so to
speak, on the barrelhead at the canal.

Now, since the Suez Canal Company has been
seized, the persons who pay are subject to double
jeopardy in the sense that, whereas undoubtedly
the seizure would be recognized as valid in Egypt,
it may not be recognized as valid by the courts of
other countries. Therefore, the Suez Canal Com-
pany may have a right to sue for those tolls in
other jurisdictions than in Egypt. Now to pro-
tect against that risk was one of the reasons why
we froze Egyptian Government funds here. And
until there is a settlement, we would probably look
to those funds as a source to indemnify American
ships who went through the canal and paid mider
conditions which may not be held as valid and
adequate by the courts of the United States.

Q. Mr. Secretary, to answer the question, would
we have any objections if any American ships did
go in in the next feio days and paid on the 'barrel-
head as they did before the blowup?

A. I would prefer not to answer that question
until I know a little bit more of the outcome of

these negotiations.

Q. How do these negotiations provide for what
you once defined as a major purpose of all negotia-
tions with Egypt over the canal, that is, the insu-
lating of the canal in its day-to-day operations
against the whims and cham,ges of Egyptian
politics?

A. That is one of the aspects of the matter which
is very difficult to deal with but which we believe
could be dealt with if there is what was referred
to by the Secretary-General in his summary of the
October negotiations as "organized cooperation"
between the Egyptian Government and the users
and if there were adequate riglits of arbitration
and so forth. I believe that that could be pro-
vided for, and indeed the draft memorandum

filed by the Egyptian Government does suggest
certain rights of arbitration. 'Wliether they are
adequate or not is a question.

Question of Users Association

Q. The draft memorandum, sir, does not give
much recognition — / don''t believe it gives any rec-
ognition to the rights of the users as a group.
Would the establishment of such rights for the
users be an objective of the United States?

A. It would be, because that is implicit in the
six requirements of the Security Council. They
provide, for example, that the tolls should be a
matter of agreement between Egypt and the users.
That implies, I think, very clearly an organiza-
tion of the users, and that was the implication
that was accepted by the Egyptian, British, and
French Governments in the talks which took place
concurrently with the Security Council meeting at
New York.

Q. Mr. Secretary, would you like to see the for-
mation of a council of users which uwuld have
some authority in developing canal policy, operat-
ing policy?

A. Well, the conditions which we would like to
see are those which were portrayed in the pro-
posals that were made by the 18 countries and
were carried to Egypt by Prime Minister Menzies.*
Now those were not the only way of accomplish-
ing the purposes in mind. But if you want to ask
what our optimum desiderata are, you would have
to go back to that.

Q. What I would like to get at is, what have
you proposed to Egypt in your latest note?

A. I don't want to disclose that note beyond
saying, as I have said, that we are suggesting
changes in the memorandum which in our opin-
ion will bring it in conformity with the six re-
quirements, and those six requirements, in turn,
seemed to us to contemplate some organization of
the users to deal with Egypt.

Q. Mr. Secretary, in view of all that has hap-
pened in the Middle East since October, is inter-
natiorud operation of the canal a practical pos-
sibility, or must the Western countries be content
with some sort of advisory role to the Egyptian
Government, which actually operates the canal?

A. Well, again I would prefer not to answer
' HuuJSTiN of Sept. 24, 1956, p. 467.

644

Department of Stale Butletin

that question at this staijo because it might have
an undesirable impact upon the negotiations.

Q. Mr. Secretary, your statement last week that
we are giving so rmich attention to Latin America
certainly gratified a good many diplomats in
totim. However, they are mystif,ed why the ad-
ministration hasnH appointed an Assistant Secre-
tary for Inter-American Affairs, lohich has been
vacant since last August, and why at a thiie when
there is so much activity in the Latin American
field the two principal positions in the Depart-
ment are noxo on the shoulders of Mr. Ruhottom as
Acting Assistant Secretary and Deputy Assistant
Secretary.

A. Well, the position is filled by an Acting As-
sistant Secretary. There is no de facto vacancy
in the position. I have not heard any complaints
of substance with respect to our handling of Latin
American affairs, and I think that personnel mat-
ters probably couldn't be advantageously dis-
cussed here.

Q. Could yoxu tell us if an appointment is im-
minent, sir?

A. No.

Q. Was there agreement at Bermuda, Mr. Sec-
retary, on the withdrawal of British troops from
Malaya, and, if so, what would the United States
do to fill the vacuum?

A. There was no precise statement made by the
United Kingdom as to its intentions with regard
to Malaya. That general topic was discussed, as
I think perhaps I indicated, at the Canberra con-
ference, the Seato Council. But the situation had
not developed as yet into a sufficiently concrete
form so that it was appropriate or advantageous
to consider concrete measures, if any, to deal with
it. Of course Malaya will become an independent
state sometime next August, and the problem of
the future of Malaya — whether it will enter the
pact and what its arrangements will be with the
other countries — will then have to be decided by
the independent Government of Malaya.

Q. Mr. Secretary, at the time you decided to
unthdram the Aswan Dam offer, did you expect
Colonel Nasser to react by seizing the canal?

A. No. We did not expect that to happen, al-
though we now know that the seizure of the Canal
Company had been planned by President Nasser
for some time. I don't recall that I recently men-

tioned it, but President Tito in a speech of his
last November said that President Nasser had told
him at their first meeting [February 1955] that it
was his intention to seize the Suez Canal Company
because Egypt as an independent nation could not
tolerate this exercise of authority on Egyptian
soil by foreigners. That was while the Aswan
Dam matter was, I think, being discussed by the
World Bank. But it was a year or more before
our decision not to go ahead with the dam.

Q. Mr. Secretary, since your retu/rn from Ber-
muda, have you acquainted yourself with the
work of the Milton Eisenhower committee?

A. I am familiar with it in general. I have
had several reports made to me about it.

Q. Mr. Secretary, yesterday on Capitol Hill,
Dr. Hannah, President of Michigan State Uni-
versity and former AssiMant Secretary of De-
fense, urged the United States to consider the Ko-
rean armistice, the armistice in North Korea, void
and that we ship modern arms to Korea and
atomic weapons to out own divisions in Korea.
What is your opinion of that, sir?

A. We do not think it is wise to treat the armis-
tice as void. It is quite true that we are convinced
of rather serious violations of the armistice by
the other side and it may be that those violations
give us a greater freedom of action in the respects
in which it has been violated by the Communists,
but, as far as relates to treating the entire armis-
tice as void and in effect resuming a state of active
belligerency, that is not something we favor.

Q. Will the Richards mission go to Egypt and
Syria, assuming that either or both Governments
invite it to come?

A. No decision has yet been made on that point.

Q. Mr. Secretary, in listing the reasons for
withdrawing from the financing of the Aswan
High Dam., you mentioned that the strain of re-
payment might tend to turn the Egyptian people
against us. Is it your feeling that foreign eco-
nomic aid to any country ^vhere repayment might
be a strain roould work against the United States?

A. It's always a question of degree, and cer-
tainly I would not think that would always be
the case or even usually be the case. But remem-
ber, tliis was a very unusual case. There has never
been in the whole history of the world an irriga-
tion project of comparable magnitude.

AptW 22, 7957

645

Q. Mr. Secretary^ has there been any change in
the administration's position barring travel by
American reporters to Red Chinaf

A. No. There has been no change in our posi-
tion in tliat respect. We are continuing to study
the matter and have been in fact doing this ac-
tively over the past week or two. But I'm not in
a position to announce it or forecast any change.

Aid to Poland

Q. There have been reports, Mr. Secretary, that
the administration is thinking in terms of a $75
million aid contribution to Poland. First of all,
is this figure roughly correct, and, if so, do you
feel that that is suffident to encourage Poland and
other Communist satellites to veer away front
Moscow? Because there have been reports that
Poland does not think that that would be a suffi-
cient sum.

A. Well, I don't think that the question of
whether or not Poland veers away from Moscow
is quite as simple as saying, can it be bought for
$60 million or $70 million or $100 million. This
is all part and parcel of a very complicated and
perhaps not very rapid process of evolution where
some of the satellite comitries are seeking to exer-
cise a greater degree of independence. We are
anxious to encourage that trend toward inde-
pendence. We don't think we are going to buy
anything spectacular just by putting up a certain
number of dollars. And as to the figures you
mentioned, I don't feel I can discuss them here
because they are the subject of negotiations which
are at the moment going on and it would perhaps
prejudice those negotiations if I got into the num-
bers racket.

Q. Mr. Secretary, if Egypt should continue to
maintain her belligerency, in your opinion would
this indicate on Egypt's part a loch of decent re-
spect for the opinions of mankind?

A. That is a little difficult to answer, I think,
in the abstract. The question of belligerency is
pretty difficult to answer I think, except in terms
of certain specifics. You might say, for example,
that the United States, despite the Korean armi-
stice, exei'cises certain aspects of belligerency as
regards Communist China — the provisions of the
Trading With the Enemy Act, for example, are
still in force. If, without regard to the general

question of belligerency you ask whether the Gaza
Strip should be used as a base of fedayeen activi-
ties, if you ask whether or not ships should be al-
lowed to pass through the Straits of Tiran, and if
you ask whether or not Israeli ships should be
allowed to pass through the Suez Canal, then I
can answer those three questions. I think I have
answered them. But I don't want to get into ab-
stractions which are pretty difficult to deal with.

Q. Well, putting it on those specifics, those last
three that you mentioned, if Egypt insisted on
belligerency in those three points, would you then
in your opinion think she would be showing a dis-
regard for the decent opinions of mankind?

A. Well, I can't speak for all of mankind.
(Laughter) How the rest of mankind would feel
about it, I don't want to say ; but, I think, as far
as the public opinion of the United States is con-
cerned, it would support the views which I have
expressed here.

Q. Mr. Secretary, it seems that the negotiations
on aviation matters between the Netherlands and
the United States have ar-rived at a complete dead-
lock. Would you mind telling us what, according
to you, is the position now?

A. Well, that again is one of these matters
which, being in the course of unresolved negotia-
tions, isn't aided by a discussion at a press con-
ference. I would say that there has been an ex-
change of views. There has not yet been a reso-
lution of certain differences which have arisen.
We are not without hope that the differences still
will be resolved.

Q. Mr. Secretary, on the Suez Canal matter,
time appears to be running out in the sense that the
canal is about ready to resuine full-scale oper-
ations. How long would you expect that these
negotiations with Egypt would continue before
some kind of decision loould have to be reached or
ought to be reached?

A. Well, measuring the length of negotiations
is a good bit like saying, how long is a piece of
string? And sometimes the estimates prove not
to be well founded. I would say that we ought
to know, I would think, within the next 2-1 or 48
hours whether there is a likelihood of serious ne-
gotiations along lines which hold out promise.
Now, if those negotiations develop, they in turn

646

Department of State BuUetin

mifijht take some little time. On the other hand,
it could be that the Egyptian attitude, as expressed
during the next day or two, ^yould indicate so little
likelihood of a successful outcome that there would
be no detailed negotiation.

Q. At this tijne, Mr. Secretary, do you have any
information on which way you think it might go?

A. None at all.

Q. Thank you, Mr. Secretary.

Building for Peace

hy Deputy Under Secm^etary Murphy '

The world is now entering upon the second
decade since the end of World War II. We have
learned a lot in the past 10 years. Striking
changes have taken place in Eui'ope, in Asia, and in
Africa. Our foreign relations have gone through
at least three basic stages : in 1947 with the Mar-
shall plan; in 1949-1950 with the Berlin air-
lift, the Communist attack in Korea, and the
creation of Nato; and in 1953 with the decision
that our national energy must be geared to the
"long haul" in our contest with international
communism.

In our planning for the next decade we must
identify and understand the basic forces and
trends at worlc. Then we must insure that our
policies are calculated to use our means to the best
advantage for shaping these forces. We must
recognize that our means are not sufficient to halt
or reverse these basic forces, and our aim must be
to channel, deflect, and manage these forces in
ways compatible with our interests.

At least tliree of these forces and trends are of
overshadowing significance — hostile Soxdet power,
developing military technology, and the rise of the
nations of Asia and Africa. These forces will
merit our closest attention in the years to come.

The greatest threat to our security and that of
the free nations is found in the hostility and
strength of international communism. Our basic

' Address made at the Conference on World Affairs at
the University of Colorado, Boulder, Colo., on Apr. 4 (press
release 186 dated Apr. 3).

endeavor is to meet that threat without destroying
fundamental American values and institutions or
damaging our own economy.

The Communist bloc has a well-balanced mili-
tary array, ranging from very large armed forces
to a considerable arsenal of nuclear weapons and
modern delivery systems. Its ideology is un-
compromisingly hostile. Absolute political
power is concentrated in the hands of a few. It
continues to devote a large proportion of its re-
soui'ces to development of military strength and
heavy industry.

At the same time the Soviet rulers are con-
fronted with strong pressures for change and for
relaxation of rigid controls, both domestic and
foreign. The de-Stalinization progi-am, the fer-
ment among Soviet academic and cultural groups,
and the events in the satellites all reflect these
pressures and the efforts of the Soviet leadership
to adjust to them.

The astonishing growth of military technology
can be pointed up by a few hard facts. Experts
have made a thorough study of the increase of de-
structive power beginning with the age of gun-
powder. What they call the "explosive index"
has increased from a factor of one in the Middle
Ages to eight on the eve of Hiroshima. The
ratio jumped virtually overnight to 10,000. With
the development of the H-bomb, the ratio went to
10 million. Compared with pre-Hiroshima 1945,
therefore, the destructive power of war has multi-
plied over one million times. With the develop-

April 22, J 957

647

ment of guided missiles, the ability to deliver this
awesome destructive power is also on the verge of
astonishing growth.

The rise of the new nations of Asia and Africa
is a promising trend ni postwar developments.
Since the end of the war, 19 new nations with pop-
ulations of about 700 million people have achieved
independence. There will be a number more in
the next few years. These nations are imbued
with patriotism and with a desire for economic
progress. They want to transform their countries
into modern states by the most rapid means. The
economic obstacles they face are indeed formi-
dable, since the new nations have on an average
about one-tenth of the per capita gross national
product of the advanced nations. Communists
from IMoscow and Peiping seek to play on and
distort the aspirations of the new nations and to
stimulate their suspicions of the so-called colonial
powers.

Our Fundamental Objectives

The requirements for our national effort in the
decade ahead will in some respect differ markedly
from those of the last 10 years. But in their basic
aspects they will continue to pose the same funda-
mental set of objectives :

First, we must maintain our own strength, for
our strength is essential to the free world ;

Second, we must keep our alliances strong and
vigorous, for reasons which deeply involve both
the spiritual purposes of our nation and the stra-
tegic requirements of this technological age;

And finally, we must work for the close associa-
tion and cooperation of the uncommitted states
and the emerging new nations with the active
community of the free world, in order that the
area of freedom may expand rather than contract.

These three fundamental tasks have been the
constants of United States purpose since the end
of "World War II. They have been the unifying
elements of the history of our exertions over the
decade since the brief period of high hopes for
honorable collaboration with the Soviet Union
broke against the aggressive expansionism of
Stalinist ambition. They characterized the pe-
riod of the gathering cold war — the program to
strengthen Greece, the foreign aid progi-am, and
the establishment of Nato. They marked tlie
period of the hot wars in Korea and Indochina

and the recurrent crises of the Far East. They
underlay the further development of the gi"eat
systems of collective security and the purpose of
our negotiations with the post-Stalinist leaders of
the Communist world.

In the light of the requirements of our national
strategy to influence the forces and trends at work
in the world, a look at the main regions of the
world may be profitable.

U.S. Support for Western Europe

Europe is the area with which we have histori-
cally had the closest ties. Most of our basic con-
cepts are products of European thought. Our
social institutions, our predominant religions, and
our cultural heritage were brought here by the
people of Europe, whose descendants now largely
populate our countiy.

If anything, the United States is now more
closely involved in Europe than ever before in
time of peace. American troops are standing with
our allies in defense of free Europe. Our com-
mercial relations with Western Europe are at lev-
els which represent an alltime high. Political
consultation with our European friends has been
more active in the past few years than ever before
in history. The successful conference just con-
cluded at Bermuda is a good example of our con-
sultation with one of our most important allies. -
The North Atlantic Council, following a recent
decision, is now one of the most important centers
of political consultation for its 15 members as well
as being a prime example of collective defense
effort. It is the intention of the United States,
together with its allies, to continue to strengthen
Nato as a forum for productive international
discussion.

In Western Europe steps have been taken and
agreements reached which as little as 10 years ago
would have been dismissed as fantastic. One of
these is the development of Franco-German co-
operation. These two coimtries work together in
the Coal and Steel Community, cooperate in their
common defense as members of Nato, and have
succeeded in settling amicably the very difficidt
question of the Saar. INIore recently, they have
joined with other nations in the agreements on
EuRATOM and the Common Market.

- For text of joint communique issued at close of Ber-
muda mooting on Mar. 24, see Bulletin of Apr. S, 1957,
p. .^01.

648

Deparlment of Sfa/e Bulletin

I would like to take a minute to discuss these two
agreenaents, which have been much in the news
lately.

The term "common market" refers to an agi-ee-
ment just concluded between Belgimn, France, the
German Federal Republic, Italy, Luxembourg,
and the Netherlands. It involves the elimination
of substantially all of the barriers to trade among
those countries and the establisliment of a common
external tariif toward outside countries. The
United Kingdom has expressed a desire to associ-
ate itself with the Common Market in a free trade
area.

United States support of European proposals
for a common market and free trade area is based
on two traditional policies : our consistent support
of moves to further the political and economic
strength and cohesion of "Western Europe withm
an expanding Atlantic Community and our long-
standing devotion to progress toward freer non-
discriminatory, multilateral trade and converti-
bility of currencies.

The Atomic Energy Community (Eukatom) is
intended to mobilize in Europe the teclinical and
industrial resources required to develop atomic
power to meet that area's growing need for energy.
It would also provide a political entity competent
to afford adequate safeguards and to enter into
comprehensive and practical engagements with
the United States Government.

The United States Government welcomes this
initiative for a bold and imaginative application
of nuclear energy, and we anticipate active associ-
ation with the European Atomic Energy Com-
munity.

The Satellites in Eastern Europe

Moving to Eastern Europe, tiie events of the
past year have been spectacular.

There can be no doubt that the developments in
Hungary last October and November presented
grave problems to the Kremlin. The Soviet
rulei-s were faced with the choice of keeping faith
with their own promises or of brutally maintain-
ing their colonial empire. They chose the latter
course. Reinforcements were rushed into Hun-
gary, and in a month of bloody fighting the Hun-
garians were again ground into submission with
the connivance of a puppet government he^aded by
Janos Kadar. Communist ideology and methods
were thus discredited all over the world. The

April 22, 1957

422775—57 3

Soviet charge of "a Fascist counterrevolution in-
spired by U.S. and other Western agents" fooled
no one outside the Communist orbit and probably
very few inside.

Have the events in Hungary resulted in a re-
newal of the Soviet hard policy? This question
cannot be answered as yet with any certainty.
There have, however, been some straws in the
wind. One of these is the threat of atomic retalia-
tion against Great Britain, Noi-way, and Denmark.
Another is the angry admonitions issued to
Sweden and Finland on how they must behave if
they expect to avoid Soviet enmity. A third has
been the denunciation by the Soviets and satellites
of the theory of "many roads to socialism." More
and more we are told that there is only one road,
that there is no such thing as "national conunu-
nism," and that all communism must be "under the
great leadership of the Soviet Union." And
finally, we have the increasingly repressive meas-
ures in Hmigary and indeed in all Soviet-occupied
countries. Yugoslavia, the father of "national
communism," again appears to be on the verge of
excommunication as a heretic.

Gomulka in Poland is pursuing a very delicate
balancing act which may illustrate his aim to offset
experimental measures by the right amount of
Communist orthodoxy. Poland's economic situa-
tion is unfavorable, and the Polish Govermnent is
trying to alleviate it by negotiations with several
Western countries.

President Eisenhower has stated the position of
the United States : ^

We honor the a.«pirations of those nations which, now
captive, long for freedom. We seek neither their mili-
tary alliance nor any artificial imitation of our society.
And they can know the warmth of the welcome that
awaits them when, as must be, they join again the ranks
of freedom.

We honor, no less in this diviiled world than in a less
tormented time, the people of Russia. We do not dread —
rather do we welcome — their progress in education and
industry. We wish them success in their demands for
more intellectual freedom, greater security before their
own laws, fuller enjoyment of the rewards of their own
toil. For as such things may come to pass, the more cer-
tain will be the coming of that day when our peoples may
freely meet in friendship.

Any discussion of Soviet-occupied territory
must give special attention to Germany. In the
Eastern Zone, 17 million Germans are still held in
imwilling bondage by the Soviet Army and a pup-

'/6id., Feb. 11, 1957, p. 212.

649

pet regime, manipulated from Moscow. Like the
Hungarians, these Germans have had bitter ex-
perience with Soviet tanks and weapons. They
and their compatriots in the Federal Eepublic
want a free, reunited Germany based on free
elections.

For years the United States has urged that this
opportvmity be given them. The United States,
together with the other nations directly concerned,
will maintain its eti'orts to advance the cause of
German reunification. It is our belief that this
is one of the cornerstones on which the peace in
Europe must be built.

Unresolved Issues in Middle East

Another area where there is cause for grave
concern is the Middle East. Although consider-
able progi-ess has been made through the United
Nations in removing the dangers to world peace
which resulted from the military action of last
fall, less headway has been made in tackluag the
basic causes which led to the outbreak of hos-
tilities.

The two unresolved issues which led to the ex-
plosion last October and November were the Arab-
Israel issue and the problem of the Suez Canal.

The history of the Arab-Israel problem in the
7 years between 1949 and 1956 is a son-y record of
disregard of United Nations resolutions and of
violations on both sides of the Armistice Agree-
ment. The Arabs felt angry and betrayed, par-
ticularly because some 900,000 of their fellow
Arabs had been deprived of their homes and prop-
erty and were leading a miserable existence as
refugees huddled in camps around the border of
the new state of Israel. The Israelis, on the other
hand, felt frustrated and desperate because they
were not able to achieve recognition of their vei-y
existence from their neighbors or to establish the
kind of trade and intercourse with the neighboring
states which could alone guarantee them a secure
future.

The events of last October and November pi-o-
duced a determination on the part of the United
Nations members to come to grips with the basic
issues which prevented a solution of this problem.
This feeling undoubtedly came somewhat from a
sense of not having fully recognized the potential
danger to world peace in this explosive situation
and not having insisted more firmly upon com-
pliance with U.N. resolutions.

Similarly the problem of the Suez Canal had
been brought to the United Nations in October
after a discouraging history of provocation and
counterprovocation which had dimmed the pros-
pects of finding a solution. Under the aegis of the
United Nations, the Security Council succeeded on
October 13 in agreeing upon six principles, which
the British, French, and Egyptians, as the parties
most directly concerned, worked out as the basis
of an equitable solution.^ The events of Novem-
ber disrupted this attempt at orderly progress as
well, but at present the situation has been restored
to a point where we think this problem, too, can
again be approached through the preferable chan-
nel of negotiation.

In the course of the months immediately follow-
ing the upheaval of October-November, it became
evident that still another problem exists in re-
gard to the area as a whole. The irresponsible
and reckless behavior of the Soviet Union in
threatening unilateral intervention in this dispute
for the sake of achieving supposed political ad-
vantages made it quite clear that, unless some kind
of a protective shield could be thrown around the
area as a whole, the disruptive and subversive ac-
tivities of the Soviet Union might vitiate attempts
to progress toward stability and tranquillity in the
area.

Since the United Nations was not equipped to
deal with this last problem, the United States Gov-
ernment formulated a doctrine for the Middle
East, which was proposed to Congress by the
President on January 5 of this year.^ Its objec-
tive is to provide economic and military assistance
to those countries in the area desiring to cooperate
with us in resisting Soviet encroachments, and thus
to help develop the economic stability and internal
security plus adequate national self-defense which
could lead to a greater degi'ee of self-confidence
and feeling of security on the part of the states in
the area.

The United States Government placed the Sov-
iet Union and the world on notice that we would
use our military power to deter or defeat overt
aggression against any of the states in the area
that desired our help. This program is being
launched by a U.S. mission xmder the able direc-
tion of Ambassador Richards, former Congress-
man from South Carolina and chairman of the

• For text, see ibid., Oct. 22, 1950, p. 616.
' Ibiil., Jan. 21, 10.^7, p. 83.

650

Department of State Bulletin

House. Foreign Affairs Committee, who is now
visiting the countries in the area." He is making
good progi'ess in encouraging the stability and
tranquillity which we believe are essential to guar-
antee peace.

In a further effort to protect the area of the Mid-
dle East agamst possible attack, the United
States recently announced its willingness to par-
ticipate actively in the work of the Military Com-
mittee of the five-nation Baghdad Pact.' This
action was taken mider the authority of the joint
resolution approved on March 9.*

Collective Defense in the Far East

Our experience in the Far East has given us fur-
ther confidence in collective security as an effective
deterrent against aggression and war. Under the
spur of outright aggi'ession by the Chinese Com-
munists, supported by the Soviet Union, collective-
defense machinery in tliat area has developed
rapidly and effectively.

The recent conference of the Southeast Asia
Treaty Organization Council in Canberra was in
a sense the coming of age of collective defense in
the Far East.* The eight nations gathered there
were in unanimous agreement that their banding
together to resist Commimist aggression had
proved effective as a deterrent and as a positive
force for peace and security in the area. On the
positive side, for example, the Council noted the
national development of new Asian states, such as
the Republic of Viet-Nam and the approach of
their objectives.

As Secretary Dulles reported, the growing
strength, unity, and demonstrated will to resist
has made it seem inexpedient to the Chinese Com-
munists to continue to use methods of force to gain
their objectives.

Wliile we find room for hope from the success of
Seato and our other collective-security arrange-
ments such as Anzus (with which we are allied to
Australia and New Zealand) and our bilateral
treaties with the Eepublic of Korea, Japan, the
Republic of China, and the Philippines, there cer-
tainly is no room for complacency. Chinese Com-
munist support for Soviet action in Hungary and
their continued defiance of the United Nations

' /6M., Mar. 25, 1957, p. 481.
'Hid., Apr. 8, 1957, p. 561.
' For text, see ibid.. Mar. 25, 1957, p. 481.
° For text of final communique and statements by Sec-
retary Dulles, see ibid., Apr. 1, 1957, p. 527.

carry serious implications for the free nations of
Asia. The threat of overt aggression continues to
cast a shadow in the Far East, and the free nations
have no choice except to maintain their military
strength, individually and collectively.

There is no question that the Communists con-
tinue to regard control of all Asia as one of their
foremost goals on the road to woi'ld conquest, and
they continue to push ahead on all fronts with a
combination of subversion, offers of trade and aid,
cultural exchange, and threats.

As always, they cut the garment to fit the cloth.
"While continuing their military buildup in North
Korea in violation of their armistice pledges, they
advance toward Japan with smiling countenance
and outstretched hand, knowing Japan's urgent
need to expand its trade and sources of supply.
'Wliile strengthening the military forces of the
Viet Minh in North Viet-Nam and supporting the
Pathet Lao defiance of the Royal Government of
Laos, they offer aid and technical assistance to
neighboring Cambodia. "While threatening re-
peatedly to take Formosa by force if necessary,
they smugly talk of peace and friendship.

Our national security depends upon our remain-
ing alert to all of these tactics, wherever they
appear, and above all in remaining miited and
strong. "We assist or plan to assist those nations
of Asia who wish such help in strengthening their
own resources and stability so that they can ward
off the thrust of commimism and add to the total
deterrent force of the free world.

It is plain that the nations of Asia and Africa
are going through a period of revolutionary
change. The aspiration for economic develop-
ment and a better life is widespread and power-
ful. Although many elements will affect the fu-
tm-e of these nations, the extent to which their
desire for economic development seems on the
way to fulfillment will be one of the determining
factois of their stability and continued freedom.

There can be no doubt, however, that a useful
employment of American resources in further-
ing our national interest is to promote economic
growth among nations needing it. I might point
to India as a prominent example and one whose
race against Red China for economic development
has important implications for us.

"We can provide an incentive for sound devel-
opment if we will increase the continuity and
flexibility of whatever funds are made available.

April 22, 1957

651

If it is possible to be more selective in the proj-
ects we support, and steadier in supporting the
best ones, we can cause the applicants for aid to
try to devise tlie best projects possible. In addi-
tion, we can assist recipients in developing better
projects and in encouraging private investment,
if we will render technical assistance not only
in the carrying out of programs but in the de-
signing of them.

"We fully realize that the Congress is taking
a hard look at foreign aid this spring. This is
a good thing, and we hope that the studies now
in progress will improve our policies on aid. The
recent report by the President's committee under
Benjamin Fairless^" gave strong support to the
view that our general programs of foreign as-
sistance are necessary and useful.

Inter-American System, a Bulwark of Freedom

In our own Western Hemisphere, which is vital
to our security and well-being, the American Re-
publics aflford the rest of the world a model ex-
ample of international cooperation. The regional
strength and fellowship of the Organization of
American States, which consists of the United
States and the 20 neighboring Republics, is not
only a hemisphere but a global force. The sup-
port given by the American peoples and their
governments to the free world is, in hard fact, an
inalienable and indispensable bulwark of freedom.

The Oas is the framework of our inter- Ameri-
can system. Through it, and within the larger
frame of the United Nations, the American Re-
publics seek to promote their common interests.
In the words of the Declaration of Panama, issued
jointly by the Presidents of the American Repub-
lics at their historic meeting last July, it is the
purpose of the American peoples "to create a
civilization that will give tangible meaning to
the concept of human liberty." " One of the
immediate consequences of the Panama meeting
was creation of the Inter-American Committee
of Presidential Representatives, which is imder-
taking to study methods of combating poverty,
disease, and ignorance throughout the hemi-
sphere and to make recommendations to the Oas

'° Report to the President by the President's Citisen
Advisers on the Mutual Security Program, March 1, 1957.
Copies may be obtained from the Superintendent of Doc-
uments, U. S. Government Printing Office, Washington 25,
D. C, at 50 cents ijer copy.

" BuixETiN of Aug. 6, 1956, p. 220.

in economic, financial, social, and technical fields.

Geography, history, and economics have made
the individually independent peoples of this hem-
isphere collectively interdependent. Our 21 Re-
publics have a total population of upwards of 380
millions in a total area of approximately 11 mil-
lion square miles. Latin America, it may be
noted, has the world's most rapidly increasing
population growth : 2.5 percent annually as com-
pared with the global average rate of 1 percent.

Obviously, our economic relationship with this
region, so enormous both in area and in popula-
tion, is necessarily a prime factor in our economy,
as it is in theirs. About one-fifth of our total
exports go to Latin America, and we obtain from
Latin America about one-fifth of our total im-
ports. We supply the Latin American Republics
with approximately 47 percent of their imports
and take 43 percent of their exports. In other
words, around 44 percent of Latin America's total
trade is with us. United States private enter-
prise currently proves its faith in Latin America's
future by direct investment of approximately $7
billion there. The eifects of this great influx of
private capital are reflected in the overall picture
of hemisphere development — in lugher living
standards, improved conditions of public health
and public education, diversified agriculture, in-
creased industrialization, and in ever-broaden-
ing horizons of opportunity.

Role of the United Nations

Recent months have given dramatic evidence
of the value of the United Nations as a mecha-
nism for fostering the rule of law in relations
among nations. We have witnessed the great
influence for peace which can be exerted when
states heed and support the opinions of the United
Nations, particularly when there is an overwhelm-
ing consensus in favor of constructive action. It
is the policy of this Government to strengthen
the legitimate role of the United Nations in ad-
vancing world peace with justice.

The recent emergency sessions of the General
Assembly and the regular Eleventh Session have
revealed new dimensions and new resources
within the United Nations. In the Middle East a
cease-fire and withdrawal of foi'ces from the area
of hostility were achieved. An unprecedented
step was taken in the creation and deployment
of the United Nations Emergency Force.

The speedy and efficient cleai-ance of the Suez

652

Department of State Bulletin

Canal, now virtually completed, was effected by
the United Nations under contract with a private
consortium. This vital task, an essential step in
restoring some measure of economic and political
stability in the Middle East, could not have been
accomplished, under the conditions existing, with-
out the intercession of the United Nations.

The office of the Secretary-General has played a
powerful part in the handling of the Middle East
crises. Mr. Hammarskjold was given broad re-
sponsibility to act in behalf of the Assembly in
bringing the Unef into being, in arranging for
clearance of the canal, and in negotiating with the
several parties to the dispute.

On the other hand, the inability of the United
Nations to secure compliance with its urgent reso-
lution, and in particular to secure the withdrawal
of Soviet forces from Hungary, is a source of deep
disappointment among many peoples of the world.
The blame for this failure lies squarely at the door
of the Soviet Union, which cruelly massacred
thousands of Hungarians who sought freedom
from Soviet tyranny. Nevertheless, the United
Nations has succeeded in focusing and maintain-
ing the pressure of world opinion on these Soviet
outrages. Its resolutions were a cogent reminder
to all lovers of freedom of the callous threat which
Soviet communism represents in the world today.
The General Assembly climaxed its deliberations
at the Eleventh Session with a specific condemna-
tion of the U.S.S.R. — a condemnation which re-
flected the revulsion of European, Latin Ameri-
can, African, and Asian states, as well as our own,
with the inhumane actions of Soviet communism.

The critical political and security issues with
which the United Nations has been concerned, and
their attendant publicity, tend to overshadow the
steady advance that is being made through the
organization on problems of vast concern for
peoples throughout the world. Important prog-
ress, for example, is being made in establishing an
International Atomic Energy Agency and bring-
ing it into association with the United Nations as
a new specialized agency. The statute for this
agency was unanimously approved by the United
Nations last fall and has just recently been sent by
President Eisenhower to the Senate for its
concurrence. ^^

New proposals on disarmament were advanced
in the Eleventh General Assembly by both the
Soviet Union and the United States. The Dis-

' Ihid.. Apr. 15, 1957, p. 615.

armament Subcoimnittee is now meeting in Lon-
don in a determined effort to find common ground
on which the beginnings of effective safeguarded
disarmament and reduction of armed forces can be
built. Our Government has some optimism that
the first steps toward agreement may be taken in
such critical fields as inspection, reduction of
forces, registration and international observation
of future nuclear testing, and bringing the nuclear
threat under control.

I do not think it too much to say that, in the
difficult and continuing task of maintaining peace
in the world and striving toward the weU-being
and security of mankind, the United Nations is
playing an indispensable role. It is a vital mech-
anism for advancing the common interests of the
free world.

I have outlined some of the major forces at
work in the world today, as well as the funda-
mental elements of our policy. I have also tried
to give a brief picture of the important problems
in the various regions of the world as we see
them. In conclusion I should lake to summarize
a few of the major aspects of U.S. policies.

A fundamental aim of our foreign policy is to
promote the well-being and security of the Amer-
ican people. Safeguarding the peace through
development of our own strength and through
collective security is a principal obligation in the
world today. We must maintain the capacity to
respond to any overt attack by the Communist
powers. We must be prepared to respond with
certainty, and we must retain flexibility in our
choice of instruments if we are attacked. At the
same time we must seek to reduce the risk of con-
flicts and to promote a retraction of Soviet power.
We should continue to blunt those forces hostile
to the free world and work to bring the strong
forces of nationalism into cooperation with the
free world.

It is obvious that this is not a program for a
single year, or even for a decade. We are living
in what President Eisenhower once termed "not
a moment but an age of danger." And we must
remember that our resources are not endless, our
power not infinite. We must use our strength to
make the changing forces proceed in an orderly
way and in directions compatible with our na-
tional interests. This is the purpose of your Gov-
ernment. It is the task of all of us to make the
best effort of which we are capable. In this way
we can truly build for peace.

April 22, ?957

653

U.S. Lifts Restrictions on Travel
to Four Middle East Countries

Press release 181 dated April 1

The Department of State on April 1 lifted re-
strictions placed on travel of U.S. citizens to
Egypt, Syria, Jordan, and Israel. These restric-
tions were instituted on October 31 and Novem-
ber 2, 1956,^ in view of the outbreak of hostilities
in the Middle East.

Authorization has also been granted for return
of evacuated U.S. official personnel and their de-
pendents to posts in the four countries.

Holders of passports which bear endorsements
invalidating them for travel in Egypt, Syria, Jor-
dan, and Israel or authorizing travel in one or
more of these countries for a limited period may
present them in person or by mail to the Passport
Office of the Department of State at Washington,
D. C, or to the passport agencies at Boston, New
York, Chicago, New Orleans, Los Angeles, or San
Francisco to have these endorsements voided.
Persons abroad may present their passports to
American Foreign Service offices.

Murder of U.S. Technicians
in Iran

Press release 178 dated March 28

The Department of State has learned with great
sorrow and concern of the murder in Iran of Kevin
Carroll, an official of the International Coopera-
tion Administration, and Brewster Wilson, of the
Near East Foundation, and the presumed abduc-
tion of Mrs. Carroll, apparently by bandits.

The Iranian Government, through the Iranian
Ambassador at Washington, Ali iVmini, and
through the U.S. Embassy at Tehran, has ex-
pressed the deep regrets of His Majesty the Shah,
the Prime Minister, and the Government of Iran
and has given firm assurances that every effort
is being made to apprehend the bandits and to
secure the release of Mrs. Carroll.

The Iranian Government has ordered full mo-
bilization of police facilities, including aircraft,
and has dispatched Maj. Gen. Ali Qoli Golpira,
Chief of the Iranian Gendarmerie, to Zahedan to
direct the pursuit. Facilities and personnel of
American official missions in Iran have likewise

' BuiXETiN of Nov. 12, 1956, p. 756.
654

been made available to cooperate with the Iranian
Government.

Secretary Dulles and Ica Director John B. Hol-
lister have written to the families of Mr. Carroll
and Mr. Wilson to express their condolences. The
Department of State is keeping in close touch
with the family of Mrs. Carroll concerning de-
velopments as the search goes on.

Kevin Carroll and Brewster Wilson died while
serving the best interests of their Government and
their country. The Department of State pays
tribute to their distinguished service, while
mourning the tragic sacrifice it has exacted from
them and their families.

U.S. Reaffirms Continuation
of Aid to Iran

Press release 1S5 dated April 2

The Department of State on April 2 reaffirmed
that there has been no suspension of technical and
economic assistance to Iran following the recent
tragic deaths of Mr. and Mrs. Kevin Carroll and
Brewster Wilson. Steps have been taken to re-
strict the travel of personnel in the area where
the tragedy occurred. This was an administra-
tive action to protect the safety of members, both
Iranian and American, of the U.S. Operations
Mission in that particular area.

The Department has expressed its appreciation
for the great efforts of His Majesty the Shah, the
Prime Minister, and the Government of Iran to
locate and free Mrs. Carroll before her death was
confirmed, and for their continuing efforts to ap-
prehend and punish the bandit murderers.

Current Developments in Hungary

Pross release l>s,S dated April .'>

In a joint declaration with the Soviet Govern-
ment at Moscow on March 28 the Kadar regime
lias again denied the competence of the United
Nations in the problem of Hungary. It has again
falsified the record by alleging that the Hungarian
uprising of October-November was a Fascist
counterrevolution unleashed by the United States.

But the record is clear. The uprising was
spontaneous. It was supported by the entire na-
tion. It was crushed only by the intervention of
Soviet armed forces. In these circumstances, the

Department of Slate Bulletin

continued presence of Soviet forces in Hungary
and the systematic repression of the Hungarian
people constitute an open confession by the Kadar
regime that it does not have the confidence of the
people and cannot exist without the protection of
Soviet troops.

The Kadar regime has vengefully sought to
identify, seize, and punish those wlio took any part
in the uprising of October-November. It has
carried out arrests of Hungarian citizens on a
mass scale. It has reinstituted by decree the
cruel practice of banishment. It has ordered all
residents of Hungary to report to the police for
a check of identity cards. It has made clear in
public statements that Soviet troops will remain
in Hungary indefuiitely for the purpose of pro-
tecting the regime and intimidating the Hun-
garian people.

These events can only be regarded as further
steps toward the complete suppression of all hu-
man rights and liberties in Hungaiy. They
mark a reversion to some of the worst practices
of the Stalinist terror in that country and stand
in ironic contrast to the celebration by Commun-
ists on April 4 of the "liberation"' of Hungary by
Soviet armed forces in 1945.

We believe that these developments will be of
concern to the Special Committee established by
the United Nations General Assembly on January
10 to investigate the problem of Hungary.^ The
Conunittee will report its findings to the General
Assembly, which remains seized of the problem
of Himgary.

Escapee Program Marks
Fifth Anniversary

Press release 170 dated March 22

The United States Escapee Program marked its
5th amiiversary on March 22.

Now located in the Office of Refugee and Mi-
gration Affairs, Department of State, headed by
Robert S. McCoUum, the Escapee Program has
returned to the Department, where it first oper-
ated after its creation in 1952. It was established
under the Mutual Security Act and has been con-
tinued by annual appropriations. The program
was transferred in 1956 f I'om the International Co-
operation Administration to the newly created Of-

' BirLLETiN of .Ian. 28, 1957, p. 138.

fice of Refugee and Migration Affairs in the Bu-
reau of Security and Consular Affairs.^

Mr. McCollum, now on a survey of the escapee
situation in Europe and the Near East, pointed
out in a departure statement on Mai'ch 15 that
a highlight of the Escapee Program's achievements
came with the care, maintenance, transportation,
and resettlement assistance it provided during the
recent outpouring of escapees as a result of the
Hungarian revolt.

Assistance by the Escapee Program supplements
programs of local governments of asylum and of
international and voluntary organizations engaged
in refugee service. Resettlement of escapees
aided by the program may be in any country where
anti-Communist refugees are welcome to reestab-
lish themselves as self-sufficient citizens of the
free world.

Of approximately 255,000 escapees from Iron
Curtain countries — including Hungarians — 160,-
000 have had some of the services of the Escapee
Program. These services range from welcoming
kits containing items for personal comfort, clean-
liness, and convenience for those newly arrived in
the free world, on through further care, mainte-
nance, and transportation, to full reestablishment,
in many cases, in countries of destination.

The Escapee Program has played a major role
in resettling about half the nearly 88,000 escapees
who have gone to the United States, Canada, Aus-
tralia, and to certain countries in South America
and participated with other organizations in as-
sisting the other half. The progi-am has also had
part in the resettlement of 54,000 in Western Eu-
rope. Some 113,000 have not been permanently
resettled in any one spot. They are m temjjorary
locations pending final destination.

Of the Office of Refugee and Migration Af-
fairs, Mr. McCollum has said : "I hope in this area
we may bring into focus for constructive consid-
eration and action the many aspects of America's
interests in escapees, refugees, and general migra-
tion problems.

"The United States must continue to exert lead-
ership in the humanitarian as well as the economic
and military fields. To justify our position and
reputation in the free world, we must not fail to
recognize that men and women everywhere are
entitled to live in freedom, with dignity and with
opportunities to improve their stations in life."

' Bulletin of Apr. 16, 1956, p. 651.

April 22, 1957

655

He asserted that the worldwide problem of refu-
gees cannot be dealt with adequately by short-
term planning, adding that "as long as oppressive
dictatorships exist, as long as basic individual
freedoms are denied, there will be people who flee
to seek better lives and, thereby, create new refugee
problems.

"Pleased as we may be about our country's part
in accepting Hungarian escapees, we must combat
any tendency to talk in terms of Hungarians only,"
Mr. McCollum cautioned. "The whole picture de-
serves constant emphasis. What of the millions
of refugees from other countries?"

Pointing out that the United States has played
leading roles in refugee problems from 1938 on, he
stated that "Congress is now facing the continuing
challenge of further action." Citing President
Eisenhower's recent recommendation to Congress
for "permanent legislation so that administrative
authorities are in a position to act promptly . . .
in facing [escapee] emergencies which may arise
in the future," ^ Mr. McCollum said :

"Our record of the past joins the issue of today.
We have performed with credit. There can be
no letting down. We must keep trying to alleviate
the plight of the longtime refugee. We are bend-
ing every effort, with available legislation, to help
in resettlement and integration. This continues
a world challenge and a challenge to the United
States to continue its leadership. Most of all we
must value a long-range policy, flexible to meet
any contingency, at the same time affording con-
tinuity of planning."

U.S. Delegations to
International Conferences

Intergovernmental Committee for European Migra-
tion

The Department of State announced on March
28 (press release 177) that Scott McLeod, Ad-
ministrator of the Bureau of Security and Con-
sular Affairs, will head a 14-man U.S. delegation
to the meeting of the sixth session of the Council
of the Intergovernmental Committee for Euro-

' Ibid., Feb. 18, 1957, p. 247.

pean Migration (Icem) to be held at Geneva,
Switzerland, April 8-13, 1957. The Council
meeting will be preceded by a week's meeting of
the 9-member Executive Committee, convening
on March 28.

Francis E. Walter and Kenneth B. Keating,
U. S. House of Representatives, will serve as al-
ternate delegates to Mr. McLeod.

Public members who will serve as advisers are :
Harold J. Gallagher, New York City, attorney;
Mrs. Edwin I. Hilson, New York City; Judge
Charles Rosenbaum, Denver, Colo., attorney;
Nick I. Stepanovich, East Chicago, Ind., attor-
ney; and Maj. Frederick SuUens, editor, Jackson,
Miss., Daily News.

Other advisers to the Council meeting are:
Robert S. McCollum, Deputy Administrator,
Office of Refugee and Migration Affairs, Depart-
ment of State; Walter M. Besterman, legal as-
sistant. House Judiciary Committee; William F.
Heimlich, consultant. Senate Judiciary Commit-
tee ; and Pierce J. Gerety, consultant. Department
of State.

George L. Warren, Adviser on Refugees and
Migration, Department of State, will serve as
acting U.S. representative to the Executive Com-
mittee meeting and as principal adviser to Mr.
McLeod at the Coimcil meeting. Elmer M. Falk,
Office of International Administration, Depart-
ment of State, will also act as adviser at both
meetings.

Icem, with funds supplied by 27 member gov-
ernments, is continuing the extensive program
undertaken in 1956 of transporting Hungarian
refugees from Austria to countries of temporary
or permanent asylum.

On the initiative of the United States, Icem
was established in 1951 to help relocate Europe's
surplus manpower and refugees. The principal
places of relocation providing new homelands
and jobs are in Australia, Canada, and various
South American countries.

Agenda items for the forthcoming meetings
include a report by the director of Icem on the
work undertaken in 1956, a revised plan of opera-
tions, and budget and planning of expenditures
for 1957. Another item on the agenda is the
problem of moving Hungarian refugees from
Yugoslavia and Austria.

656

Department of Sfafe Bulletin

Advantages to the United States of Membership
in Proposed Organization for Trade Cooperation

MESSAGE OF THE PRESIDENT TO THE CONGRESS'

To THE COXGEESS OF THE UnITED StATES :

The Secretary of Commerce is submitting for
consideration by the Congress legislation to au-
thorize United States membership in the Organi-
zation for Trade Cooperation.-

I urge its favorable consideration.

The advantages to the United States of mem-
bership in the Organization for Trade Coopera-
tion are compelling. It would open the way to
major benefits for American trade by providing
day to day review and consultation on administra-
tion of our trade agreements. It would provide
machinery for closer supervision and protection
of the assurances contained in those agreements
against discriminatory treatment of American
exports, and thus increase the benefits we receive
from those agreements. It would enable us more
effectively to encourage the opening of new op-
portunities for our exports to compete in the
Avorld market on their commercial merit.

Foreign trade is a major economic activity in
the United States. In 1956 our merchandise ex-
ports, excluding goods shipped under military as-
sistance programs, amounted to over 17 billion
dollars. They constituted a greater proportion of
our gross national product than the value of all
non-farm residential construction last year. In
the field of agriculture alone exports provide the
market for the product of about 40 million acres
of land.

' White House press release dated Apr. 3 ; transmitted
on Apr. 3 (H. Doe. 14C, 8.5th Cong., 1st sess.).

^ For text of OTC agreement, see Bulletin of Apr. 4,
1955, p. 579.

Because exports take only part of the produc-
tion of most of our industries and farms, and be-
cause they move through so many stages of proc-
essing and handling on their way to foreign
markets, we frequently overlook their importance.
But they are vital to the welfare of our agricul-
ture, labor and industry.

America's foreign trade has grown rapidly
under our Reciprocal Trade Agreements Program.
This program has been in effect for more than
20 years, but since 1946 its principal vehicle has
been a multilateral agreement known as the Gen-
eral Agreement on Tariffs and Trade, signed by
all the major trading nations of the world.

That agreement gives to the United States im-
portant tariff and other concessions, but some of
the benefits of these concessions to our export
trade have been offset by such measures as quotas,
licenses, and exchange restrictions. These meas-
ures have imder various circumstances had the
effect of discriminating against United States ex-
ports, and limiting the benefits of tariff conces-
sions which we received under the General
Agreement.

The General Agreement provides for the
orderly elimination of this discrimination against
our trade, but, because of inadequate machinery
for administration, these provisions have not
been fully effective.

The Organization for Trade Cooperation, by
making possible more business-like administra-
tion of those provisions of the General Agree-
ment, will help to make our trade agreements
more fully effective and assist us in expanding

April 22, 1957

657

our markets abroad for United States products.
At the preseiit time, administration of the Gen-
eral Agreement is limited by the fact that the
signatories meet only intermittently.

In my Message of April 14, 1955,^ I reviewed
the evolution of the General Agreement and the
developments whicli led to the proposal for an
Organization for Trade Cooperation. That
Message was followed by exhaustive hearings be-
fore the Committee on Ways and Means of the
House of Kepresentatives * and in April 1956
that Committee approved a bill to authorize
United States membership in the proposed
Organization.

In reporting last year's biU the Committee on
Ways and Means inserted a number of construc-
tive amendments to assure that participation by
the United States in the Organization for Trade
Cooperation would relate solely to matters per-
taining to international trade and that safe-
guards for domestic producers contained in our
present trade legislation would be maintained
unimpaired. These amendments have been
strengthened and included in this year's bill.

The proposal being submitted by the Secretary
of Commerce contains two new features not
found in the bill approved by the Committee on
Ways and Means last year. These are designed
to provide further safeguards to insure that
United States participation in the proposed Or-
ganization will be responsive to the problems and
needs of American agriculture, labor and in-
dustry. The first is a provision to create an ad-
visory committee consisting of representatives of
American labor, industry, agriculture and the
public to advise and consult with the United
States chief representative on matters coming be-
fore the Organization. The second is a provision
under which the United States chief representa-
tive would make an annual report to the Presi-
dent for transmittal to the Congress concerning

' lUd., Apr. 25, 1955, p. 678.

' For statements by Secretary Dulles and Secretary
o( Commerce Sinclair Weeks, see ibid., Mar. 19, 195C,
p. 472.

the effect of the activities of the Organization for
Trade Cooperation on American labor, industry
and agriculture.

In addition, the proposal contains provisions
further clarifying the substantive safeguards al-
ready endorsed by the Committee on Ways and
Means by explicitly stating that its enactment
will not authorize, directly or indirectly, any fur-
ther tariff reduction or other tariff concession by
the United States not elsewhere authorized by
the Congress.

The recent development of proposals for a com-
mon market and free trade area place Western
Europe on the threshold of a great new move-
ment toward economic integration. The Otc
will help to assure that this movement will de-
velop in ways beneficial to our trade and that of
other free countries, avoiding the danger that
regional trade arrangement will lead to new bar-
riers and discriminations against our exports.

To achieve our objectives, it is essential that the
United States chief representative to the Organ-
ization for Trade Cooperation be a person of
wide experience in practical business matters, and
that the members of the Advisory Committee
likewise have had practical experience in their
respective fields. I intend to appoint the Secre-
tary of Commerce as Chairman of the Advisory
Committee.

Tlie foreign trade policies of the United States
are based upon our reciprocal trade legislation
and the agreements that have been negotiated
under it. Until we establish the best possible
machinery for administration of these agree-
ments, we are needlessly failing to obtain their
maximum possible benefits for American labor,
industry, and agriculture. With membership in
tlie proposed Otc we will be in the strongest
possible position to achieve the full benefits that
these agreements afford.

I recommend the early enactment of this
proposal.

DwiGHT D. ElSENH0\VER

TirE White House,
April 3, 1957.

658

Department of Sfafe Bulletin

Principles of U.S. Foreign Economic Policy

Statement hy Thorsten Y. Kalijari'l
Assistant Secretary for Economic Affairs ^

I am appearing today in response to the com-
mittee's request for the Department of State to
present its views on aspects of our foreign eco-
nomic policy which serve to build a world of free
peoples. Other officials of the Department have
previously appeared to discuss the Soviet eco-
nomic system.

My statement will describe for you how the
United States, through its economic policies, is
contributing to a strong community of free- world
nations based upon the system of free private
enterprise, a free flow of capital and exchange of
industrial and other techniques, and a mutually
profitable and expanding trade among the na-
tions of the free world. There is a marlied con-
trast between the Soviet system and ours which
will be developed in this statement. Our major
free-world partners, such as the United King-
dom, are of course also vitally interested in a
strong free world and are working to this end.
However, I wisli today to limit myself primarily
to our own economic policies.

First, to contrast these systems in general. As
has been pointed out in earlier testimony, the eco-
nomic diplomacy of the U.S.S.E. has as its aim
furtherance of Soviet-brand communism. Its
immediate objectives are to weaken the cohesion
of the free world, to intensify neutralism, and to
encourage countries to look to the Soviets for aid
and leadership. Its long-range objective is to
subvert and communize any nation which appears
to be a likely political target. Its dream of an

' Made before the Subcommittee on International Or-
ganizations and Movements of the House Committee on
Foreign Affairs on Apr. 3 (press release 187).

ideal world is a politico-economic system planned
and controlled from the Kremlin.

The aim of the United States in the conduct
of our foreign economic policy has been to work
not for enslavement of other j^eoples but for their
freedom. Our immediate aims are to work with
free peoples everywhere in helping to improve
standards of living and to provide people with
greater opportunities to develop their abilities
and enrich their contributions to human life.
Our long-range objective is to help make it pos-
sible for people throughout the world to choose
the course of freedom independent of foreign
domination or ideological slavery. Our aim is a
world community of free and prosperous nations
bound together by peaceful ties of trade, of mu-
tual helpfulness, and of common ideals of human
dignity. Thus conceived, the foreign economic
policy of the United States has as its aim the
"building of a world of free peoples."

Let us turn to three major aspects of our
foreign economic policy that contribute to this
overall aim, namely: (1) the encouragement of
free competitive enterprise abroad; (2) the en-
couragement of the flow of capital and technical
assistance abroad; and (3) the promotion of an
expanding world trade.

Encouraging Free Competitive Enterprise Abroad

First let us consider our policy of encouraging
competitive enterprise in the free world.

As the committee is aware, there is no place
for free enterprise in the Soviet economy. The
monolithic Soviet state owns all the land, all the

kptW 22, 7957

659

factories, and all the mines. Economic decisions
are made by the Government, taking into account
first the requirements of the Soviet state and giv-
ing only secondary consideration to the needs of
the individual. Government ministries and agen-
cies have absolute control over the entire economy.
Both managers and worlvers are subject to the
fullest kind of regimentation. Coercion is one of
the principal means employed to obtain maxi-
mum effort from tlie Soviet worker.

Before proceeding to a description of the free-
enterprise system, it is useful to point out that
our economy has not developed in the way which
Karl Marx envisaged as the inevitable course for
a capitalist society. He did not conceive of the
kind of evolutionary development which has
taken place. The violent explosions and up-
heavals which he prophesied have not occurred.
The free-enterprise system was supposed to be
predatory but instead has provided a higher
standard of living for all members of our so-
ciety than at any time in the history of mankind.

In contrast with the Soviet economic system,
the free competitive enterprise system is a reflec-
tion of the basic philosophy of democratic gov-
ernment. The foundation of such a system is the
sanctity of private property, whether it be a fac-
tory or a farm. Competitive enterprise in a
democracy is thoroughly responsive to the needs
and interests of all citizens. It is a vigorous and
dynamic system which stimulates changes and
progress. This system encourages initiative, in-
ventiveness, and greater productivity by the in-
dividual through affording him better opportuni-
ties to utilize his talents and to improve his per-
sonal status and well-being. Personal motivation
to do a good job is inherent in the free com-
petitive enterprise system because both the em-
ployer and the employee know their compensa-
tion is determined by the play of economic forces,
not by arbitrary decisions of the state. The re-
sult is a maximum of production from a given
set of resources and a high standard of living.

The essential characteristics of this system
which produce these results are the following:
first, ingenuity and risk-taking by management,
which results in the development of new indus-
tries, the introduction of new products, and the
use of improved methods of production; second,
competition in the market place, which serves as
a major stimulus to efficient production, lower

costs, and lower prices; and, third, protection of
workers' rights through their participation in
free independent labor unions.

Let me now mention some of the significant
activities within tlie free nations of the world
which serve to promote a system of competitive
enterprise and which it is the policy of the United
States to encourage. Of considerable significance
are the European Coal and Steel Commimity and
the proposed European Common Market, both
of which have as their principal economic goal
the elimination of both public and private bar-
riers to trade among the six member countries as
a means of stimulating more efficient production
and improving standards of living. Worthy of
mention is the fact that several Western European
countries, within the framework of the Organiza-
tion for European Economic Cooperation, have
established national programs to improve indus-
trial efficiency and increase productivity. A num-
ber of these same countries have enacted anticartel
legislation designed to remove private restraints
on production and trade. Particularly note-
worthy is recent legislation adopted by the United
Kingdom which promises to be one of the most
effective anticartel laws yet enacted in Western
Europe. Also of importance are the efforts being
undei'taken to develop free labor unions and con-
structive management-labor relations.

It should be emphasized that in our encourage-
ment of free enterprise abroad the United States
fidly recognizes the riglit of other countries to
determine their own forms of economic organiza-
tion. Wlaat we want is for other peoples to have
confidence in their innate capacities for economic
progress through free institutions of their own.

The problem of encouraging competitive free
enterprise in liighly developed economies must of
necessity differ substantially from the problem of
encouraging it in countries with less developed
economies. Productivity in these latter countries
is generally very low. As a rule, it is inhibited
by a shortage of administrative and managerial
skills, by a shortage of capital for investment, and
by a complex of public and private attitudes to-
ward economic life which sometimes results in
restrictive, high-cost production. One of the ma-
jor problems, therefore, is producing changes in
basic attitudes which will in time lead to changes
in economic and business practices. A number
of the less developed countries have attempted

660

Departmenf of Sfafe Bulletin

to meet their problems by socialist devices, that is,
government ownership or close control of basic
industries or portions of them. This is not nec-
essarily a manifestation of an ideology approach-
ing commmiism. These governments apparently
have determmed that such action is necessitated
by the economic facts of life with which they are
confronted and that only thus can economic de-
velopment be guided and achieved. It is impor-
tant for us to understand these motivations in
order to work effectively with these countries.

Expanding the Flow of Capital

Let us next take up the second main aspect of
our foreign economic policy which contributes to
the objective of building a world of free peoples,
namely, the encouragement of the flow of capital
and tecluiical assistance abroad. The need for
expanding the flow of capital to the free nations
will be considered first.

As the conunittee knows, developing economies
need capital. Literally many countries, particu-
larly the less developed ones, are capital starved.
Recognizing this fact late in 1955, the U.S.S.R.
began to exploit this situation by making attrac-
tive offers of credits to these countries. Substan-
tial credits have now been granted to a number
of carefully selected "political targets" outside
the Soviet bloc.

The United States also has been aware of the
needs of other free nations for capital and, as a
matter of fact, was doing something to meet these
needs long before the Soviets. Thus, the United
States has undertaken many measures to encour-
age private investment abroad on a basis which
contributes to efficient growth of the industries
of otlier free countries. "We are negotiatmg
"friendship, comnierce and navigation" treaties to
establish an environment favorable to interna-
tional investment and tax treaties for the avoid-
ance of double taxation; we are offering govern-
ment guaranties to private investors against the
hazards of inconvertibility, expropriation, and
war ; we continue to provide a variety of informa-
tion services to facilitate private foreign invest-
ment. We have taken the initiative in the estab-
lishment of the International Finance Corpora-
tion, which has been organized as an affiliate of
the International Bank. The purpose of the Cor-
poration is to encourage the growth of productive
private enterprise, especially in the less developed

countries. To do this, the Corporation will in-
vest in private undertakings in association with
private investors and will revolve its investments
by selling them to other private investors.

At this stage, however, private-enterprise capi-
tal can do only a part of the job. In the newly
emerged countries of Asia and Africa the primary
need is for basic development projects: power,
communications, irrigation, and transportation — ■
fields to which private capital is not likely to be
attracted in sufficient quantities. Public funds
are therefore necessary. This Government con-
tinues to invest public funds through the Exim-
BANK in meritorious development projects abroad
for which private funds are not available. We
give full support to the development lending of
the International Bank. Through the mutual
security program the United States is providing
commodities and services to help friendly coun-
tries maintain adequate defense establishments.
In addition, we are providing capital for devel-
opment assistance in the form of loans repayable
in local currency and, where necessary, as grants
to those countries whose economic strength cannot
be built up with adequate speed wholly by the
normal processes of trade and investment.

Our surplus foods and fibers are being used to
relieve distress abroad arising from famine or
other urgent difficulties. We are also lending
back to the nations buying our surplus agricul-
tural commodities a substantial portion of the
proceeds of the sales for the purpose of investment
in economic development projects.

Technical Assistance

In addition to encouraging the flow of capital
abroad, we must also give technical assistance to
the nations of the free world. This is particu-
larly true of the underdeveloped countries, which
are in great need of know-how and managerial
skills.

Teclmical assistance is a relatively new field for
the Soviets, but they are expanding it rapidly in
anticipation of a future payoff in political bene-
fits. In this field also the Soviets are concentrat-
ing their efforts in the less developed countries.
At this time the Soviets probably hope to reduce
or eliminate our influence in certain areas of the
free world and at the same time build up a reser-
voir of good will for the U.S.S.R.

Our teclmical-assistance activities are a very

April 22, 7957

661

important complement to the economic aid pro-
gram. Big dividends have accrued from the
relatively small investment in technical assistance.
Through bilateral arrangements vrith our free
partners the United States has established agri-
cultural, health, education, and other types of
projects in virtually every free nation m the
world. The United States also participates in
multilateral programs of sharing teclmical skills.
Among the most important of these is the United
Nations Expanded Program of Teclmical Assist-
ance. Experts have been recruited from 77 coun-
tries to help provide technical education in vari-
ous forms.

In addition, the United States has supported the
establislmient of an International Atomic Energy
Agency to make nuclear technology widely avail-
able in all its peaceful aspects and to allocate
fissionable materials for benign uses. We are
providing technical assistance in nuclear science,
and we have given financial support for the in-
stallation abroad of reactors suitable for research
in tlie peaceful uses of atomic energy. American
industry is also playing an important role in the
technical-assistance program by sharing its latest
techniques and processes with other free
countries.

Promoting World Trade

Now let us turn to the third main aspect of our
foreign economic policy which contributes to the
aim of building a world of free peoples — the pro-
motion of world trade. In no place is there
a sharper contrast between the policies and prac-
tices of the U.S.S.R. and the United States than
in the trade field. This contrast is, in a sense, a
reflection of the two economic systems.

There is, of course, no place for the private
trader in the foreign trade of the Soviet Union.
All Soviet foreign trade is completely regimented
and carried on through a state trading apparatus.
As a result, in this field as in every otlier field of
Soviet foreign economic policy, political motives
are predominant in tliat the Soviet leaders select
countries to trade with wliich they feel they can
influence by economic deals. For example, bulk
purchases from free-world countries are often
timed for maximum political effect. In their ef-
forts to expand trade with the free world, the
Soviets have depended primarily on bilateral
trade agreements and specific barter deals.

By way of contrast, the nature of our com-
petitive enterprise system determines in large
part the manner in which we conduct our foreign
trade. Most of our foreign trade is carried on
by private traders. Their decisions are based
largely on considerations of the market place, not
on political motivations.

As a matter of governmental trade policy the
United States has sought to achieve an expanding
world trade through international cooperation as
a stimulant to our own economic growth and
security as well as that of other free nations. Its
objective is to minimize government controls
over trade so that the influence of the market
place may have its maximum impact.

The United States is doing this in recognition
of the basic mutual benefits which flow from
trade among coimtries. Through the process of
international specialization, the countries of the
free world are interdependent for sources of ma-
terials and goods and for markets for the goods
which they produce. Through international
trade, countries in effect increase their produc-
tivity by marketing those things which they pro-
duce in surplus and buying those things which
they cannot produce efficiently. A country may
be able to achieve a considerable amount of self-
sufficiency through severe restrictions to trade,
but no country is so blessed with resources that
it could do so without sacrificing a degree of eco-
nomic well-being and economic development.

In addition, with ample opportunities for trad-
ing witli tlie United States and with each other,
the countries of the free world can better resist
the pressures, both from tlieir own commercial in-
terests and increasingly from the Soviet Union,
to become dependent on trade with the countries
of the Communist bloc. This issue is particu-
larly crucial in the underdeveloped areas of the
free world, which are feeling tlie brunt of the
Soviet economic offensive. Some of these coun-
tries in Asia, Africa, and the Middle East now
have very substantial trade with the Soviet bloc.

As a means of developing mutually beneficial
trade, the United States pioneered in promoting
cooperative action in the trade field when it
adopted the reciprocal trade agreements program
in 1934. By 1945 the United States had signed
bilateral trade agreements with 29 countries.
Bilateralism in trade relations gave way to multi-
lateralism after World War II because experi-

662

Deparfmenf of Stale Bulletin

ence had shown that the complex problems of
international trade could not be dealt with ef-
fectively on a bilateral basis. The product of
this experience was the General Agreement on
Tariffs and Trade, to which there are 35 sig-
natories, including the major trading nations of
the free world.

By the establishment of accepted principles of
trade policy and procedures for resolving trade
disputes, a measure of stability in world trade lias
been created which has contributed significantly
to its overall expansion.

In conclusion, I think it is clear that the vari-
ous aspects of our foi'eign economic policy which

have been discussed here will help the nations of
the free world the better to resist the Communist
challenge. However, it is important to stress the
fact that this Government has a deep-seated and
enduring interest in the economic growtli and de-
velopment of other free nations, quite apart from
the important political problem of resisting the
spread of communism. In other words, we are
seeking to better the economic status of the people
of all free nations, not just to be in opposition to
something but because we sincerely believe it is a
positive good. If we are successful in these ef-
forts, I believe that this nation will have made a
significant contribution to the building of a world
of free peoples.

Limitations on Travel of American Citizens Abroad and on Cultural Exchanges

STATEMENT BY DEPUTY UNDER SECRETARY
MURPHY'

It is a privilege to have this opportunity to ap-
pear before you and to review with you the ques-
tion of the limitations imposed by the Depax'tment
of State on the travel of American citizens abroad
and certain related matters bearing on the ex-
change of persons between the United States and
other countries.

Also at your express wish, Mr. Chairman, I
shall review the question of the ban on travel to
Communist China of American newsmen and ad-
dress myself to the policy aspects of limitations
on overseas travel of Americans and on cultural
exchanges generally.

There is an accumulation of tradition as to ex-
actly what a passport is and what rights citizens
bearing passports have. The basic passport law
dates back to 1856, although passports have been
issued by the Secretary of State since the found-
ing of the country. In fact, Congress enacted
legislation in 1803 and in 1815 which specifically

' Made before the Senate Foreign Relations Committee
on Apr. 2 (press release 182).

took cognizance of the fact that the Secretary
issued passports under his general authority to
conduct foreign relations.

In 1856 the Congress also recognized that the
President was i-esponsible for the protection of
American citizens abroad. This responsibility
was later specifically assigned to the President by
an act of Congress on July 27, 1868, by which
the President was authorized to take measures
"not amounting to acts of war" to insure the re-
lease of any American citizen "mijustly deprived
of his liberty by or under the authority of any
foreign government."

Although the Congress recognizes the Presi-
dent's obligation to protect American citizens
abroad and to secure their release when unjustly
held by foreign governments. Congress has tradi-
tionally recognized the Secretary of State's au-
thority to issue passports. This was most recently
reflected by an act of Congress of July 3, 1926.
This act states that the Secretary or his designated
representative may grant and issue passports
"under such rules as the President shall designate
and prescribe for and on behalf of the United
States."

April 22, 1957

663

Discretionary Control Over Issuance and Validation
of Passports

The Secretary of State historically has decided
which citizens should receive passports and for
what countries their passports should be vali-
dated. =^ Under section 51.135 of the Department
of State Regulations, as amended January 10,
1956, passports are denied to members of the Com-
munist Party and to certain other citizens who
support the Communist movement. In addition,
section 51.136 proscribes the issuance of passports
to certain other individuals. This regulation
states :

In order to promote and safeguard the interests of the
United States, passport facilities, except for direct and
immediate return to the United States, will be refused
to a person when it appears to the satisfaction of the
Secretary of State that the person's activities abroad
would: (1) violate the laws of the United States; (2) be
prejudicial to the orderly conduct of foreign relations;
or (3) otherwise be prejudicial to the interests of the
United States.

In addition to his discretionary control over
which individual citizens are issued passports, the
Secretary of State may also decide which coun-
tries they may visit. This takes the form of a vali-
dation stamp in each passport, stating which coun-
tries may or may not be visited. Policy decisions
as to which countries are intended in the ban are
continually reviewed in the light of current de-
velopments. During wartime, passports are vali-
dated for relatively few coimtries and close check
is kept on which areas are safe for American
travel. During World War II, for example,
American passports were only good for 6 months
and were taken up at the frontiers when citizens
returned to the United States.

Generally speaking, the United States will not
validate passports for travel to countries with
which we do not have diplomatic relations.
Americans traveling to such countries cannot be
extended the usual protection offered American
citizens and property abroad by our embassies
and consulates abroad. At the present time, the
following inscription is printed in every United
States passport :

This passport is not valid for travel to the following
areas under control of authorities with which the United
States does not have diplomatic relations: Albania, Bul-
garia, and those portions of China, Korea and Vietnam
under Communist control.

" For text of passport regulations, see 22 Code of Federal
Uegulations 51.135 through 51.143.

In addition to not validating passports for coun-
tries with which we have no diplomatic relations,
the Secretary of State may, from time to time, de-
cide that the safety of American citizens cannot
be fully protected in certain countries. Tliis is
one of the reasons for the present ban on travel to
Hmigary ^ and the recent ban on travel to the four
nations in the Middle East — Israel, Egypt, Jor-
dan, and Syria. The Secretai-y of State, while
considering it advisable not to validate passports
for Hungary, for example, nevertheless retains
the right to except certain groups, whose travel to
those areas would be in the interests of the United
States. Groups often excepted in such cases are
Eed Cross and relief workers, priests and mis-
sionaries, and the press.

When the Secretary believes that the current
situation in any particular country is stable once
more, he then may lift the ban on travel there
either for particular groups or for all citizens.
Yesterday, as the most recent case in point, the
situation in the Middle East was considered to
have stabilized sufficiently for the four-country
ban to be removed.*

One reason for not allowing citizens to travel to
certain countries, in addition to the safety of the
individuals involved, is the psychological pres-
sure which can be brought to bear on a country by
not allowing Americans to enter it. For example,
the United States cut off travel to Czechoslovakia
after United States newpaperman William Oatis
was imprisoned. The unfavorable publicity re-
ceived by the Czechs abroad and their desire to
have American newsmen and tourists visit Czech-
oslovakia undoubtedly contributed to the release
of Mr. Oatis.^ Such pressure would have been im-
possible had the Secretary not had the authority to
stop travel to Czechoslovakia.

Ban on Travel to Communist China

As a specific case history, the committee may
wish to have a brief analysis of the policy reasons
why Americans are not permitted to travel to
Communist China, beyond the reasons that we

'' For text of U.S. note to Hungary concerning reinstitu-
tiou of passport validation requirements, see Bulletin of
Feb. 13, 1956, p. 246.

' See p. 654.

"For Department statement on prohibition of travel
to Czechoslovakia, see Bulletin of .June 11, 1051, p. 932 ;
for Department announcement on release of William N.
Oatis, see ibid., June 1, 1953, p. 785.

664

Department of State Bulletin

have no diplomatic relations with it. Public at-
tention has been focused on the refusal to author-
ize travel by newsmen, but I sliould make it clear
that this applies to all other citizens as well.

Many other categories of travelers — mission-
aries, scholars, educators, public officials, relatives
of imprisoned Americans — have been refused
passports to Communist China. Let me put it this
way : the special advantages or disadvantages of
allowing any one group to travel there were not
the governing factor. The decision, and the rea-
sons behind it, applied equally to all Americans.

And let me make one other point clear before
giving those reasons: the skill and impartiality
of American correspondents were never a point
at issue. The vital importance of a full flow of
information about conditions in mainland China
has been recognized throughout.

The reasons, stemming from fundamental
United States foreign policy, may be summarized
as follows:

(1) A state of unresolved conflict exists be-
tween the United States and the United Nations
on the one hand and Communist Cliina on the
other. The armistice, signed in 1953, was to con-
tinue until a political settlement was reached. No
such settlement has ever taken place, owing to
the refusal of the Chinese Communists to consider
any terms acceptable to the United Nations. The
national emergency, proclaimed by the President
at the time of the original Communist attack in
Korea, is still in effect. All trade and financial
transaction with Communist China are prohibited
by United States laws and regulations. In time
of war, travel in enemy territory is denied to
United States citizens. In tiie present state of na-
tional emergency, travel to Commvmist China is
similarly denied.

(2) The Communist Chinese threat against the
Republic of China, with whom the United States
has a treaty of mutual defense, remains clear and
present. The Chinese Communist buildup on the
mainland opposite Formosa continues. They have
specifically refused to enter into any agreement
renouncing the use of force in the Formosa area.
Under such conditions the United States believes
that mainland travel by its citizens is unwise.

(3) Since, as I have said, the United States does
not recognize the Chinese Commmiist regime,
normal diplomatic and consular protection for
United States travelers there cannot be extended.
This situation is highlighted by the fact that the

Chinese Communists have taken, and are still
holding, political hostages. Here is strong evi-
dence of the need for such protection. Even if
the citizen applying for a passport would waive
his right to such protection, the Government must
extend it to the limit of its capabilities.

(4) The Chinese Communist regime, which
came to power by armed insurrection, has consoli-
dated that power by a series of lawless acts. These
include invasion of North Korea and attack on
United Nations forces there, and illegal imprison-
ment of American citizens without trial. It also
includes flagrant violation of the Korean Armi-
stice Agreement by the introduction of new
weapons and aircraft in North Korea, and, as we
have seen, it includes the continuing buildup of
forces on the mainland opposite Formosa. In all
these instances, the opinion of the rest of the
world has been cynically disregarded. Now Com-
munist China seems to feel the need for respecta-
bility and acceptance into the family of nations.
One of the requisites of such respectability is the
establishment of trade relations and cultural ex-
changes with the United States. The prerequi-
site thus is a relaxation of United States travel
restrictions.

A Form of Blackmail

The wish of the Chinese Communists for greater
respectability has been confirmed in the series of
meetings at Geneva between United States Am-
bassador U. Alexis Johnson and Communist
Chinese Ambassador Wang Ping-nan, which be-
gan on August 1, 1955. It was there that the Chi-
nese Communists agreed that all American citi-
zens in their counti'y so desiring should be allowed
to return to the United States and undertook to
facilitate that return. Despite this unequivocal
commitment of September 10, 1955, eight United
States citizens are still held prisoners.*' Ambassa-
dor Johnson has taken the firm position that the
cultural exchanges and visits by newspapermen
now desired by the Chinese Communists could not
be considered while United States citizens were
still held prisoner. To do so might well destroy
their last chance for freedom and would most
certainly be giving in to a form of blackmail.

It is also necessary, of course, to consider the
effect upon our friends and allies should

° For background, see ibid., Feb. 18, 1957, p. 261. Two of
the imprisoned Americans, the Rev. Fulgence Gross and
Paul Mackinsen, were released in March 1957.

April 22, 1957

665

the United States yield under such pressure. Con-
fidence in our determination to resist the aggres-
sive designs of communism would be weakened.
The position of leadership which we have ac-
cepted would be seriously undermined. It would
be most difficult for us to urge others, many of
whom must depend in part on our strength, to
stand unafraid and unflinching before the Com-
munist threat. It is well known that this threat
often takes the form of economic and cultural
penetration.

As Secretary Dulles has recently said in his
press conference,^ this whole question of the visits
by newspapermen to mainland China is under con-
tinuing review. If a formula can be found to per-
mit their coverage of conditions there without
affecting American lives and indulging in a form
of appeasement by yielding to blackmail, we
would all be greatly relieved.

Cultural Exchanges With Communist Countries

Now in this kindred matter of cultural ex-
changes with other Communist countries, and the
limitations thereon, I would like to make certain
points clear : first of all, we have no exchanges of
any kind with countries which we do not recog-
nize— Bulgaria, East Germany, Albania, North
Viet-Nam, and North Korea, as well as Com-
munist China.

At the present time, such exchanges, either
official or private, are suspended with Hungary.
American passports are not valid for travel to
Hungary except, as we have seen, for certain
special categories.

For some time now, the Department has taken
no initiative in the matter of officially sponsored
exchanges with the U.S.S.R. There lias been con-
siderable exchange activity, however, with Poland
and, to a lesser extent, with Czechoslovakia and
Eumania. At the present time a Polish coal dele-
gation is in this country, as well as their mission
on economic aid. An unofficial United States
housing delegation expects to go to Poland in
June in reciprocity for a Polish visit to the United
States last November. Three Rumanian observers,
you will remember, covered our election last No-
vember, and it is hoped that some kind of re-
ciprocal visit to Rumania by American political
experts and scholars will take place shortly.

The refusal of Communist countries to abide by

' Ibid., Mar. 25, 1957, p. 482.

our visa requirements and allow their nationals to
be fingerprinted has severely limited exchanges in
the cultural field. Obviously, we cannot regard a
troupe of entertainers as Government officials.
So a kind of impasse exists. Unless the finger-
printing requirement for nonofficial visas is legally
removed, it is to be expected that the Soviet bloc
will continue to use it as an excuse for propaganda
to the effect that we have erected our own Iron
Curtain. And it further gives them the op-
portunity to deny visits of American cultural
groups because of our seeming failure to apply
reciprocity.

Exchange Program With Free-World Countries

This small trickle of exchanges with certain of
the Communist countries, is, we hope, temporary.
The Secretary of State is currently studying this
problem with a possible expansion in mind. We
believe in the kind of miderstanding and good will
that exchanges of people in many professions and
walks of life engender. Our own International
Educational Exchange Program with the world
outside the Iron and Bamboo Curtains is a flour-
ishing and successful one which we feel has in-
creased American miderstanding of our allies and
of other countries of the free world and, we have
every reason to believe, helped tell the American
story abroad.

A current example of how this free- world pro-
gram works is the sharp increase in planned ex-
changes with Africa. The trend toward inde-
pendent status for colonial areas and trust terri-
tories, as they become ready for the responsibilities
of self-government, has been a continuing one.
The contemplated increase in our program for
fiscal year 1958 is particularly oriented toward the
development of African educational facilities and
toward an expansion of the leader progi'am and
the specialist program there. For example, the
number of exchange gi-ants contemplated for the
newly independent nation of Ghana will bo in-
creased, it is hoped, from 13 to 40.

If any argument were needed, over and above
the compelling one of increased two-way under-
standing, it could be pointed out that there has
been a marked interest on the part of the Com-
munists in these newly emergent coinitries and
that it has taken the form of providing educa-
tional facilities for African leaders and potential
leaders. And their interest in other countries re-

666

Department of State Bulletin

mains constant as well. Vice President Nixon, foi'
example, on his return from his recent African
tour emphasized to us the importance attacliing
to exchanges with African countries as well as
other efforts in the cultural and economic fields.
If we believe, as we all do, that our way of life is
the true one and the Communist way is the false,
it seems to me that a thriving exchange program,
which conveys the story of the American way and
the way of the free world, is a rnust in the continu-
ing battle for the minds of men.

STATEMENT BY ROBERT F. CARTWRIGHT^

We are happy to appear before your subcom-
mittee this morning in response to the request
made in the chairman's letter dated March 22,
1957, to furnish whatever information we can re-
garding current State Department issuance policy,
procedure, regulations, and practices.

The Department of State representatives pres-
ent have been made available to assist the sub-
committee in its study. We hope to be able to
furnish answers to your questions. In the event
there is any information which is not immediately
at hand, we shall be glad to furnish it later for
the record, consistent with the committee's
wishes.

It may be helj^ful at this point if some general
statements might be made to demonstrate the De-
partment's position in relation to its responsibili-
ties in the passport field. With that in mind I
would like to quote for the record at this time cer-
tain portions of the statement made by Deputy
Under Secretary Eobert D. Murphy, before the
Senate Foreign Eelations Committee on April 2,
1957. Copies of Mr. Murphy's statement are avail-
able for the record if the committee wishes them,
but I would like to quote here certain paragraphs
which I feel deal directly with the immediate in-
terests of this subcommittee.

'Made before the Subcommittee on Constitutional
Rights of the Senate Committee on the Judiciary on Apr.
4 (press release 190). Mr. Cartwright was Acting Ad-
ministrator of the Bureau of Security and Consular Af-
fairs.

[At this iwint, Mr. Cartwright read from Mr. Mur-
phy's statement, the third through the eleventh para-
graphs.]

In addition to the bases for denial of passports
cited in the quoted portions of Mr. Murphy's state-
ment, the passport regulations of the Department
of State provide that persons denied passports be
advised in writing of the tentative refusal and
of the reasons on which it is based, as specifically
as, in the judgment of the Department of State,
security considerations permit. Upon request and
before refusal becomes final, the applicant is en-
titled to present his case and all relevant informa-
tion to the Passport Office on an informal basis.
At this time he is entitled to appear in person be-
fore a hearing officer and to be represented by
counsel. Upon request he will confirm his oral
statements in an affidavit for the record. There-
after the Passport Office must review the record
and after consultation with other interested of-
fices will advise the applicant of the decision. If
the decision is adverse, the applicant must be ad-
vised in writing and the letter must contain the
reasons on which the decision is based as specifi-
cally as the Department of State security limi-
tations permit. The letter shall also advise the
applicant of his right to appeal the decision.

The administrative body handling appeals of
this type is composed of not less than three officers
of the Department of State, designated by the
Secretary of State. The Board [of Passport Ap-
peals] is required to adopt and has adopted and
publicized its rules of procedure, including recog-
nition of the applicant's right to a hearing, right
to representation by counsel, and providing for the
applicant's opportunity to inspect the transcript
of his testimony. Likewise, other witnesses must
have the right to inspect their testimony if they
wish.

The Board has the duty of advising the Secre-
tary of State of the action it finds necessary and
proper to the disposition of the case, and to this
end the Board may call for further clarification
of the record, additional investigation, or other
action consistent with its duties.

Copies of the passport regulations of the De-
partment of State are available for the com-
mittee.

April 22, J 957

667

TREATY INFORMATION

Educational Exchange Agreement
With Paraguay

Press release 191 dated April 4

The Governments of Paraguay and the United
States on April 4 signed an agreement putting
into operation a program of educational exchanges
authorized by the Fulbright Act. The signing
took place at Asuncion with Raul Sapena Pastor,
Paraguayan Minister of Foreign Affairs, repre-
senting his Government and Ambassador Arthur
A. Ageton representing the Government of the
United States.

The agi-eenient provides for the expenditure,
over a period of 3 years, of Paraguayan currency
equivalent to $150,000 received from the sale of
surplus agricultural products in Paraguay to fi-
nance exchanges of persons between the two coun-
tries to study, do research, teach, or engage in
other educational activities. The purpose of the
program is to further the mutual understanding
between the peoples of Paraguay and the United
States by means of these exchanges.

Under the terms of the agreement a Commission
for Educational Exchange Between the United
States of America and the Republic of Paraguay
will be established in the latter country to facil-
itate the administration of the program. The
Commission's board of directors will consist of
eight members with equal representation as to
Paraguayan and U.S. citizens in addition to the
U.S. Ambassador, who will serve as honorary
chairman. All recipients of awards under the
program authorized by the Fulbright Act are
selected by the Board of Foreign Scholarships,
whose members are appointed by the President of
the United States. The Board maintains a sec-
retariat in the Department of State.

With the signing of this agreement, Paraguay
becomes the 37th country to participate in the
educational exchange program initiated 10 years
ago under authority of tl>e Fulbright Act. Edu-
cational exchanges between Paraguay and the
United States have been carried out for a number
of years under the Act for Cooperation Between
the American Republics, the Smith-Mundt Act,

and other legislation. This agreement will con-
siderably augment the present number of ex-
changes.

After the members of the Commission have been
appointed and a program has been formulated,
information about specific opportunities to par-
ticipate in the exchange activities will be re-
leased.

Brazilian Copyright Proclamation

DEPARTMENT ANNOUNCEMENT

Press release 183 dated April 2

A copyright proclamation issued on April 2
by President Eisenhower in conjunction with an
exchange of diplomatic notes between the United
States and Brazil served to establish a supple-
mentary copyright arrangement between the
United States and Brazil. The notes were ex-
changed between C. Douglas Dillon, Deputy
Under Secretary of State for Economic Affairs,
and Ernani do Amaral Peixoto, Brazilian Am-
bassador to the United States. This arrange-
ment reaffirms the continued existence of recipro-
cal copyright relations, based upon the Buenos
Aires Convention on Literary and Artistic Copy-
right of 1910,^ and for the first time provides for
the protection in the United States of works of
Brazilian nationals in musical recordings.

The United States and Brazil have enjoyed
reciprocal copyright relations since 1915 on the
basis of the Buenos Aires Convention of 1910.
However, a decision of the United States Court
of Appeals in New York held that the 1910
convention did not entitle Brazilian nationals to
protection imder the United States copyright law
for their recorded musical works. In that case,
the owners of the Brazilian copyright in the
popular song "Tico-Tico" attempted, without suc-
cess, to bring an infringement action against
various United States music publishers and
broadcasters for unauthorized performance of the
musical composition by means of phonograph
recoixls.

The April 2 action, affording Brazilian and
United States nationals complete reciprocal pro-
tection for their literary and artistic works, will
bo of significant importance in encouraging and

'38 Stat. 1785.

668

Departmenf of Stale Bulletin

assisting the increasing exchange of Brazilian and
United States works, particularly in the musical
field.

PROCLAMATION 3175 '

Whereas section 1 of title 17 of tlie United States
Code, entitled "Copyrights", as codified and enacted into
positive law by the act of Congress approved July 30,
1947, Gl Stat. 652, provides in part as follows :

Any person entitled thereto, upon counjlylng with the provi-
sions of this title, shall have the exclusive right :

(e) To perform the copyrighted work publicly for profit if It
be a musical composition ; . . . Provided, That the provisions
of this title, so far as they secure copyright controlling the
parts of Instruments serviug to reproduce mechanically the
musical work, shall include only compositions published and
copyrighted after July 1, 1909, and shall not include the works
of a foreign author or composer unless the foreign state or nation
of which such author or composer is a citizen or subject grants,
either by treaty, convention, agreement, or law, to citizens of
the United States similar rights.

and

Whereas section 9 of the said title 17 provides in
part that the copyright secured by such title shall ex-
tend to the work of an author or proprietor who is a
citizen or subject of a foreign state or nation;

(b) When the foreign state or nation of which such author
or proprietor Is a citizen or subject grants, either by treaty,
convention, agreement, or law, to citizens of the United States
the benefit of copyriglit on substantially the same basis as to its
own citizens, or copyright protection, substantially equal to the
protection secured to such foreign author under this title or by
treaty ; or when such foreign state or nation Is a party to an
international agreement which provides for reciprocity In the
granting of copyright, by the terms of which agreement the
United States may, at its pleasure, become a party thereto.

and
Whereas section 9 of the said title 17 further provides :

The existence of the reciprocal conditions aforesaid shall be
determined by the President of the United States, by proclama-
tion made fiom time to time, as the purposes of this title may
require . . .

and

Whereas the Government of the United States of
America and the Government of the United States of
Brazil are parties to the Convention on Literary and
Artistic Copyright, signed at Buenos Aires on August 11,
1910 ; and

Whereas satisfactory official assurances have been re-
ceived that under provisions of Brazilian law and by the
terms of the above-mentioned Convention of Buenos Aires
citizens of the United States of America are entitled to
obtain copyright in the United States of Brazil for their
works on substantially the same basis as citizens of the
United States of Brazil, including rights similar to those
provided by section 1 (e) of title 17 of the United States
Code:

Now, therefore, I, DwiGHT D. Eisenhower, President
of the United States of America, do declare and proclaim :

= 22 Fed. Reg. 2305.

That there exist with respect to the United States of
Brazil the reciprocal conditions specified in sections 1 (e)
and 9 (b) of the said title 17 and that citizens of tlie
United States of Brazil are entitled to all the benefits of
the said title 17 :

Provided, that the provisions of section 1 (e) of the
said title 17, so far as they secure copyright controlling
parts of instruments serving to reproduce mechanically
the musical work, shall apply only to compositions pub-
lished and copyrighted after the date of this proclama-
tion which have not been reproduced in the United States
prior to the date hereof on any contrivance by means of
which the work may be mechanically performed.

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 second day of

April in the year of our Lord nineteen hundi'ed

[SE.VL] and fifty-seven, and of the Independence of the

United States of America the one hundred and

eighty-first.

By the President :

John Foster Duixes,
Secretary of State.

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency.
Done at New York October 20, 195G.'
Ratification deposited: Guatemala, March 29, 1957.

Copyright

Universal copyright convention. Done at Geneva Sep-
tember 6, 1952. Entered into force September 16, 1955.
TIAS 3324.
Ratification deposited: Cuba, March 18, 1957.

Protocol 1 concerning application of the convention to
the works of stateless persons and refugees. Done at
Geneva September 6, 1952. Entered into force Sep-
tember IG, 1955. TIAS 3324.
Ratification deposited: Cuba, March 18, 1957.

Protocol 2 concerning application of the convention to
the works of certain international organizations.
Done at Geneva September 6, 1952. Entered into
force September 16, 1955. TIAS 3324.
Ratification deposited: Cuba, March 18, 1957.

Finance

Memorandum of understanding regarding German as-
sets in Italy. Signed at Rome March 29, 1957. En-
tered into force March 29, 1957.

Signatures: France, Italy, United Kingdom, and
United States.

' Not in force.

AprW 22, 1957

669

Fisheries

Protocol amending the international convention for the
northwest Atlantic fisheries of February 8, 1949 (TIAS
2089). Done at Washington June 25, 1950.'
Ratification deposited: Canada, March 27, 1957;
United Kingdom, April 2, 1957.

War

Geneva convention relative to treatment of prisoners of

war;
Geneva convention for amelioration of condition of

wounded and sick in armed forces in the field ;
Geneva convention for amelioration of 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; for the United States Febru-
ary 2, 1956. TIAS 3364, 3362, 3363, and 3365,
respectively.
Ratification deposited: Iran, February 20, 1957.

Wheat

International wheat agreement, 1956. Open for sig-
nature at Washington through May 18, 1956. Entered
into force July 16, 1956, for parts 1, 3, 4, and 5, and
August 1, 1956, for part 2. TIAS 3709.
Acceptance deposited: Netherlands, March 27, 1957.

BILATERAL

DEPARTMENT AND FOREIGN SERVICE

Resignations

Horace A. Hildreth as Ambassador to Pakistan, effec-
tive about May 1. (For text of Mr. Hildretli's letter to
the President and the President's reply, see White House
press release dated April 1.)

Designations

Robert E. Ward, Jr., as Director, Ofl5ce of Munitions
Control, effective December 2, 1956.

PUBLICATIONS

Brazil

Agreement providing for reciprocal copyright protection
of literary, artistic, and scientific works. Effected
by exchange of notes at Washington April 2, 1957. En-
tered into force April 2, 1957.

Italy

Agreement amending the agricultural commodities agree-
ment of October 30, 1956, as amended (TIAS 3702,
3760, and 3762) . Effected by exchange of notes at Rome
March 26, 1957. Entered into force March 26, 1957.

Memorandum of understanding regarding war damage
claims. Signed at Rome March 29, 1957. Enters into
force upon notification by each Government to the other
that the formalities required by their respective laws
have been complied with.

Portugal

Agreement extending the agreement for use of facilities
in the Azores of September 6, 1951 (TIAS 3087). Ef-
fected by exchange of notes at Lisbon December 31,
1956, and February 2, 1957.

Spain

Agreement relating to the loan of certain naval vessels
or small craft by the United States to Spain, and an-
nex. Effected by exchange of notes at Madrid March
9, 1957. Entered into force March 9, 1957.

Tunisia

Economic and technical assistance agreement. Effected
by exchange of notes at Tunis March 26, 1957. En-
tered into force March 26, 1957.

* Not in force.

Recent Releases

For sale ly the Superintendent of Documents, U.S. Oov-
ernment Printing Office, Washington 25, D. G. Address
requests direct to the Superintendent of Documents, ex-
cept in the case of free publications, which may be ob-
tained from the Department of State.

The National Interest and Foreign Lan^ages. Pub.
6389. Interuatioual Organization and Conference Series
IV, UNESCO 30. 133 pp. 650.

A discussion outline and work paper sponsored by the
U.S. National Commission for UNESCO for the purpose
of discussing whether or not the national interest would
be served by increased study of modern foreign languages
in the United States.

The Price of Peace. Pub. 6415. General Foreign Policy
Series 114. 9 pp. Limited distribution.

Text of the second inaugural address of President Eisen-
hower, January 21, 1957.

The American Agricultural Attache. Pub. 6422. Depart-
ment and Foreign Service Series 61. 23 pp. 150.

A pamphlet describing the duties and responsibilities
of the American agricultural attach^.

The Situation in the Middle East. Pub. 6461. Near and
Middle Eastern Series 23. 14 pp. Limited distribution.

A pamphlet containing the text of a radio and television
address to the American people made by President Eisen-
hower on February 20, 1957.

670

Department of Slate Bulletin

April 22, 1957

Ind

ex

Vol. XXXVI, No. 930

Africa. The Emergence of Africa (Nixon) . . . 635

American Republics. Building for Peace

(Murphy) 647

Asia. Building for Peace (Murphy) (547

Brazil. Brazilian Copyright Proclamation (Eisen-
hower) 668

China. Secretary Dulles' News Conference of

April 2 641

Congress, The

Advantages to the United States of Membership in
Proposed Organization for Trade Cooperation
(Eisenhower) 657

Limitations on Travel of American Citizens Abroad
and on Cultural Exchanges (Murphy, Cart-
wright) 663

Principles of U.S. Foreign Economic Policy (Kali-

jarvi) 659

Department and Foreign Service

Designations (Ward) 670

Resignations (Hildreth) 670

Economic Affairs

Advantages to the United States of Membership in
Proposed Organization for Trade Cooperation

(Eisenhower) 657

Brazilian Copyright Proclamation (Eisenhower) . 668
Limitations on Travel of American Citizens Abroad
and on Cultural Exchanges (Murphy, Cart-
wright) 663

Principles of U.S. Foreign Economic Policy (Kali-

jarvi) 659

M. Ren6 Mayer To Visit Washington 640

U.S. Lifts Restrictions on Travel to Four Middle

East Countries 654

Educational Exchange

Educational Exchange Agreement With Paraguay . 66S
Limitations on Travel of American Citizens Abroad
and on Cultural Exchanges (Murphy, Cart-
wright) 663

Check List of Department of State
Press Releases: April 1-7

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

Releases issued prior to April 1 which appear in
this issue of the Bulletin are Nos. 170 of March
22 and 177 and 178 of March 2S.
No. Date Subject

180 4/1 Visit of Ren6 Mayer.

181 4/1 Travel restrictions to Middle East lifted.

182 4/2 Murphy : travel of Americans abroad.

183 4/2 Brazilian copyright proclamation.

184 4/2 Dulles : news conference.

185 4/2 Technical and economic aid to Iran.

186 4/3 Murphy : "Building for Peace."

187 4/3 Kalijarvi : foreign economic policy.

188 4/3 Current developments in Hungary.
tl89 4/3 U.S.-Netherlands air transport agree-
ment.

190 4/4 Cartwright : passport policy.

191 4/4 U.S.-Paraguay educational exchange

agreement.
tl92 4/5 U.S.-Canadian negotiations on potato

tariffs.
tl93 4/5 Joint communique on U.S.-Afghan talks.

tHeld for a later issue of the Bxtlletin.

Egypt. Secretary Dulles' News Conference of
April 2 641

Europe

Building for Peace (Murphy) 647

M. Ren6 Mayer To Visit Washington 640

Hungary. Current Developments in Hungary . . 654

International Organizations and Conferences. In-
tergovernmental Committee for European Migra-
tion (delegation) 656

Iran

Murder of U.S. Technicians in Iran 654

U.S. Reaffirms Continuation of Aid to Iran . . . 654

Israel. Secretary Dulles' News Conference of

April 2 641

Middle East

Building for Peace (Murphy) 647

U.S. Lilts Restrictions on Travel to Four Middle

East Countries 654

Mutual Security

Building for Peace (Murphy) 647

U.S. Reaffirms Continuation of Aid to Iran . . . 654

North Atlantic Treaty Organization. Eighth Anni-
versary of NATO (Eisenhower) 640

Pakistan. Resignations (Hildreth) 670

Paraguay. Educational Exchange Agreement With
Paraguay 668

Poland. Secretary Dulles' News Conference of

April 2 641

Presidential Documents

Advantages to the United States of Membership in

Proposed Organization for Trade Cooperation . 657

Brazilian Copyright Proclamation 668

Eighth Anniversary of NATO 640

Protection of Nationals

Limitations on Travel of American Citizens Abroad
and on Cultural Exchanges (Murphy, Cart-
wright) 663

Murder of U.S. Technicians in Iran 654

U.S. Reaffirms Continuation of Aid to Iran . . . 654

Publications. Recent Releases 670

Refugees

Escapee Program Marks Fifth Anniversary . . . 655
Intergovernmental Committee for European Migra-
tion (delegation) 656

Treaty Information

Brazilian Copyright Proclamation (Eisenhower) . 668

Current Actions 669

Educational Exchange Agreement With Paraguay . 668

U.S.S.R. Principles of U.S. Foreign Economic

Policy (Kalijarvi) 659

United Nations. Building for Peace (Murphy) . 647

Name Index

Carroll, Kevin 654

C'artwright, Robert F 667

Dulles, Secretary 641

Eisenhower, President 640,657,669

Hildreth, Horace A 670

Kalijarvi, Thorsten V 659

Mayer, Ren6 640

McCollum, Robert S 655

Murphy, Robert 647, 663

Nixon, Richard M 635

Ward, Robert E., Jr 670

Wilson, Brewster 654

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NATO — Its Development and Significance

The growth and accomplislmients of the North Atlantic Treaty
Organization from the signing of the North Atlantic Treaty on
April 4, 1949, to the ijresent time are described in this 61-page
pamphlet, a recent publication of the Department of State.

The topics discussed include :

America's Interest in the North Atlantic Treaty
Origin of the North Atlantic Treaty
Purposes and Activities of Nato
Organization of Nato
U.S. Contributions to Nato
Nato Accomplislmients
The Future of Nato

Two appendixes carry the text of the Eeport of the Committee
of Three on Non-Military Cooperation in Nato and the text of
the North Atlantic Treaty.

Copies of NATO— Its Development and Significance may be
purchased from the Superintendent of Documents, U.S. Govern-
ment Printing Office, Washington 25, D.C., for 30 cents each.

Publication 6467

30 cents

Please send me copies of NATO— Its Development and

^^^ Significance.

Order Form ■^

To: Supt. of Documents Name:

Govt. Printing 0£5ce

Washington 25, D.C. Street Address:

City, Zone, and State:

Enclosed find:

(cash, check, or
money order).

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 931

AprU 29, 1957

i

■M

'IV prrnpD

PROPOSALS FOR SUBSTANTIVE CHANGES IN
MUTUAL SECURITY LEGISLATION • Statement

by Secretary Dulles 675

REPORT TO THE FOUNDER ON FOREIGN AFFAIRS

9 by Assistant Secretary Robertson 682

THE UNITED NATIONS AND RESPONSIBILITIES

FOR THE FUTURE • by Assistant Secretary Wilcox . 688

UNITED NATIONS COMMISSION ON THE STATUS

OF WOMEN • Statements by Mrs. Lorena B. Hahn ... 704

MUNITIONS CONTROL AND THE ELECTRONICS

INDUSTRY • by Leonard H. Pomeroy 697

ED STATES
OREIGN POLICY

For index see inside back cover

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 931 • Publication 6486
April 29, 1957

For sale by the Superintendent of Documents

U.S. Government Printing Office

Washington 26, D.O.

Price:

62 Issues, domestic $7.60, foreign $10 25
Single copy, 20 cents

The printing of this publication has been
approved by the Director of the Bureau of
the Budget (January 19, 106S).

Note: Contents of this publication are not
copyrighted and items contained herein may
bo reprinted. Citation of the Department
or ST4TE Bulletin as the source will be
appreciated.

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

Publications of the Department,
United Nations documents, and legis-
lative material in the field of inter-
national relations are listed currently.

Proposals for Substantive Changes
in Mutual Security Legislation

/Statement by Secretary Dulles ^

I am glad to respond to your comroittee's re-
quest that I discuss with you certain aspects of
the mutual security program.

Before dealing with specific issues I should like
to consider the basic purposes which, I believe,
the legislation is designed to serve. These pur-
poses provide the best guidelines for determining
the form which the legislation should take.

Supporting Considerations

The security and prosperity of the United States
are bound up with the continued security and
pi'osperity of other free nations. Trends in inter-
national political affairs, economic life, and most
of all in military technology link our fate ever
more closely with that of other members of the
free-world community.

Our national policy must reflect this funda-
mental fact. Unless it does so, we shall face a peril
the like of which we have never known.

The measures which we have been taking to
avoid that peril are many; they are interlocking
and mutually reinforcing. Perhaps because of this
fact these measures have become somewhat con-
fusing.

Congress can be expected to sustain a continuing
program for creating security, strength, and op-
portimity abroad only if this is responsive to basic
sentiments of the American people. Legislation

' Made before the Senate Special Committee To Study
the Foreign Aid Program on Apr. S (press release 194).

as vital as this is to the welfare of the American
people should be in a form which will enable them
to imderstand it and to sponsor it with conviction.

II.

Of all the purposes served by government, the
first is to provide its citizens with security. That
is one aspect, a major aspect, of our international
policy. We seek to create as between the free
nations a common defense which will give greater
security than could be obtained by any one alone.

The concept of "common defense"' is not new to
our people. Our Nation was founded primarily
to create a common defense, and our Constitution
specifies that as one of its major purposes. The
same considerations which in 1787 led our States to
accept the necessity for a common defense, today
require the nations of the free world to seek a com-
mon defense.

International communism today controls man-
power which is about five times as large as that
of the United States. It has great capacity to
create the most modern instruments of mass de-
struction. It controls territories which provide
staging areas for attack far more diversified and
of much greater total strategic value than do ter-
ritories under the sovereignty of the United States.

Under these circumstances it would be folly not
to strive for a common defense with other free na-
tions. That folly would permit ever more man-
power, ever more natural resources, and ever more
strategic areas to fall imder the domination of
those who are bitterly hostile to us and our free
institutions.

April 29, 1957

675

We have many treaties and congi-essional reso-
lutions whicli proclaim that it would be dangerous
to the peace and safety of the United States if
other free nations succumbed to the aggression of
international communism. "We have collective de-
fense treaties with 42 other nations, and the recent
Middle East resolution authorizes a further exten-
sion of the area of common defense.

Upon these political foundations, we erect mili-
tary defenses. Others contribute much to those
defenses. But we, too, must contribute if the
totality is to be adequate. For many nations can-
not support the military establishments which, in
the common interest, should be on their soil.

The collective defense which the United States
shares with other nations benefits them, but it
equally benefits us. In this connection, I recall the
testimony of the Chairman of the Joint Chiefs of
Staff:

. . . the military aid program is part and parcel of the
U.S. Defense Department program. The expenditares
abroad in support of our alliances do not differ in purpose,
scope, or objective from our own military expenditures.

It is the considered judgment of the President
and his military advisers that the system of com-
mon defense, for which our military assistance is
essential, is also the most effective way to provide
for United States defense. To weaken that sys-
tem by cutting our contribution to it would not
involve a saving to the United States. On the
contrary, it would require a far more costly de-
fense program here at home. Even then, we
would be less secure.

Our Nation accepts military burdens, not as an
expression of our national aspirations but as an
elemental necessity. I do not doubt that the
American people will continue to support the de-
fense aspects of mutual security because of that
necessity.

III.

Programs of military defense alone, however,
cannot assure that the free world will be main-
tained intact. There is also a threat to future
independence and freedom where moderate lead-
ers despair of being able to lift their nation out
of hopeless poverty and stagnation.

As President Eisenhower said in his second
inaugural address : ^

In too much of the earth there is want, discord, danger.
New forces and new nations stir and strive across the

" Bulletin of Feb. 11, 1957, p. 211.

earth, with power to bring, by their fate, great good or
great evil to the free world's future. From the deserts of
North Africa to the islands of the South Pacific, one-third
of all mankind has entered upon an historic struggle for
a new freedom : freedom from grinding poverty. Across
all continents nearly a billion people seek, sometimes al-
most in desperation, for the skills and knowledge and as-
sistance by which they may satisfy, from their own re-
sources, the material wants common to all mankind.

It is in our direct self-interest that these new
nations should succeed in the historic struggle of
which the President spoke.

Our concern also stems from the historic con-
ception of the American people as to the role of
their nation in the world. The American people
believe in a moral law and that men and nations
are bound by that law. As George Washington
said in his Farewell Address, "religion and moral-
ity are indispensable supports'' of our free gov-
ernment. And of moral and religious precepts,
one of the most basic is the concept of the brother-
hood of man. That is why our people have never
even tried to make their nation into an oasis of
prosperity in a world desert of human misery.

Another aspect of our faith is belief in the dig-
nity and worth of the human individual every-
where. All men, our Declaration of Independence
said, are endowed with inalienable rights to life,
liberty, and the pursuit of happiness.

That is why we hate a system which treats men
as mere bits of matter to be made into the grinding
cogs of some superstate machine. That is why
we crave liberty for all men everywhere ; and we
want to protect liberty where it is and to see it
restored where it is lost.

Our founders did not see their experiment as a
purely selfish enterprise. They had the courage
to launch their principles into the world. What
they did became known throughout the world as
"The Great American Experiment." Abraham
Lincoln said of our Declaration of Independence
that it meant

. . . liberty not alone to the people of this country but
hope to all the world for all future time. It was that
which gave promise that in due time the weights would
be lifted from the shoulders of all men.

Because we still retain that sense of mission we
are eager that other lands and other people should
know the blessings of liberty.

IV.

We can, I think, see that what is now called the
mutual security program is the expression, under

676

Department of State Bvlletin

modern conditions, of two needs: (1) our need
for a common defense with other free nations
willing to share with us the burdens and benefits
of that relationship; and (2) the need to manifest
realistically the faith with which our Nation has
been imbued from its beginning, a faith which has
made our Nation great in the best sense of that
often-abused word.

And let me add that to suppress or to belittle
the manifestation of that faith would serve us ill.
No society can long survive without a faith which
is dynamic and creative and which reaches out to
others. If the day ever comes when our Nation
is not responsive to the lifegiving qualities that
are reflected in the developmental aspects of our
program, then that will mark the beginning of
our end.

Applications

I.

I turn now to the question of what substantive
changes should be made in the form of the legisla-
tion to make it more responsive to the sentiments
which support its dual purpose.

It seems to us that confusion has come at least
in part from lumping together, as "defense sup-
port," all kinds of economic assistance given to
countries whose military programs we are sup-
porting. Such confusion can be, and should be,
ended.

Our support to these countries takes three prin-
cipal forms: (1) aid in terms of actual military
goods, so-called "end items"; (2) support of the
economies to the extent required to enable these
countries to carry the economic burden of armed
forces which we and they agi-ee are necessary for
the common defense; and then (3) the economic
development progi'ams, including technical assist-
ance, which we might be engaged in irrespective of
our military ties.

It is our view that the so-called defense sup-
port should hereafter comprise only the assist-
ance required to meet so much of the economic bur-
den of militar3' defense as the country cannot it-
self afford. Appropriations for military assist-
ance and for this redefined category of defense
support would then be authorized on a continuing
basis and hereafter appropriated annually to the
President in appropriations for the Department
of Defense.

"We believe that this way of treating military as-

sistance, which also is recommended by many of
the recent studies on the subject, would avoid a
wide degree of misunderstanding abroad and at
home by making apparent the degree in which we
wish our aid to serve military defense.

II.

I turn now to the economic development aspect
of the program.

We believe that all economic development, in-
cluding that which goes to countries with which
we have common defense, should be considered to-
gether. We also believe that more emphasis
should be placed on long-term development
assistance.

It is true that our economic aid cannot be more
than a marginal addition to any country's de-
velopment efforts. This addition can, however, be
significant and even detennining. It can break
foreign-exchange bottlenecks, and it can be a key
factor in stimulating a country to a more effective
development program of its own. If our develop-
ment aid is to have this effect, however, we must do
two things: (1) break away from the cycle of an-
nual authorizations and appropriations; and
(2) eliminate advance allocations by countries.

Economic development is a continuing process,
not an annual event. Present annual appropria-
tions have resulted in procedures which do not
allow either us or the receiving countries to make
the most efficient use of the resources which we are
providing.

The best way to achieve this greater efficiency is,
we believe, the establishment of an economic de-
velopment fund to provide assistance through
loans on terms more favorable than are possible
through existing institutions. To be effective,
such a fund would need continuing authority and
a capital authorization sufficient for sevex-al years,
to be renewed when needed.

Such a fund could extend aid for specific pro-
grams or i^rojects submitted by applicant coun-
tries. Each request for a loan from the fund
should meet certain criteria, including a showing
(1) that financing cannot be obtained from other
sources; (2) that the project is technically feas-
ible; (3) that it gives reasonable promise of direct
or indirect contribution to a nation's increased
productivity.

The fund could usefully join with such institu-
tions as the World Bank or the Export-Import
Bank in financing particular projects. Its aid

Apr\\ 29, J 957

677

might thus enable tliese banks to expand their
operations by assisting projects which conld not
qualify in their entirety for loans which these
institutions are authorized to make. In order not
to displace other sources of credit, loans from the
development fund should be repayable on a basis
subordinate to the claims of the World Bank, the
Export-Import Bank, and private lending agen-
cies.

To make development aid most effective and
economical, we must provide it in a businesslike
way. I believe that the procedures outlined above
win have that effect.

III.

In addition to need for foreign-aid military
programs and loans for economic development,
there will undoubtedly be some need for foreign
financial aid on a grant basis.

International communism is waging against us
what is sometimes called a "cold war." It can
move, without budget controls or parliamentary
action, to take advantage of opportunities such as
those created by its own subversive efforts, by the
infirmities of free governments not yet solidly
based, or by the misfortunes of nature.

It is therefore necessary that our Government
also have limited discretionary funds so that we,
and not international communism alone, will be
able to move decisively in relation to such situa-
tions. Without that, we would be conceding to
despotism an advantage which could enable it to
register great gains.

Already we have a special Presidential fund
provided by section 401 of the act to meet emergen-
cies and contingencies. A fund for such purposes
should be continued.

IV.

Technical assistance is a tested and extremely
effective way of enabling other countries to de-
velop their own resources. It is our thought that
technical assistance, both direct and through the
United Nations technical assistance program,
should be continued on much the present basis.

V.

As to the administration of the revised program,
we have in mind that military end-item aid would
continue to be administered by the Department
of Defense and that each of the types of economic
aid that I have described would continue to be

administered by the International Cooperation
Administration.

We do not believe that it would be wise to trans-
fer the administration of defense support to the
Defense Department. This would require a waste-
ful duplication within the Defense Department of
Ica's well-established economic organization. And
it would divide between two agencies the respon-
sibility for administering economic programs
which must, for the sake of efficiency and good
management, be closely coordinated.

We believe that the International Cooperation
Administration should be continued and that it
should be continued as it now is, namely, a semi-
autonomous agency.

We believe that all aspects of our mutual secu-
rity progi'am should be under the effective foreign-
policy guidance of the President and the Secretary
of State. This can be done by the exercise by
the President of his inherent power to direct the
executive branch of government. To achieve this
result does not require throwing into the Depart-
ment of State heavy operating responsibilities.

VI.

I turn now to the question of the order of mag-
nitude of our programs.

( 1 ) Assuming that the international climate re-
mains as at present, I would estimate that grant-
aid expenditures for military purposes would need
to continue for some years at a level close to the
present. In some instances the size of the local
forces that mutual security helps to support may,
perhaps, be reduced without undue political and
inilitai-y risks. That would suggest declining
costs for us. On the other hand, it may be neces-
sary to reorganize and equip our allies with more
modern types of weapons. This suggests increas-
ing costs. Perhaps these two factors will roughly
balance each other.

(2) On the assumption that economic develop-
ment is hereafter made through loans and not
through grants, this would, I surmise, require a
development fund able to make loans which, not
for fiscal year 1958 but over the future, might
come to reach $750 million a year. The procedures
we suggest should permit substantial savings in
terms of lesser administrative costs and an ability
to accomplish more with less expenditure. On the
other hand, the needs may become more com-
pelling.

678

Department of Slate Bulletin

(3) In addition, there is the continuing lim-
ited requirement, to which I have referred, for
grant aid to meet contingencies and imperative
needs which cannot realistically be met by loans.
Also, of course, there are the technical assistance
programs now running at about $150 million a
year.

Vll.

In conclusion, I recall the report of the For-
eign Relations Committee of last June in relation
to the mutual security program. The committee
report said :

. . . the next few years may be more diflBcult in some
respects than the last few. The problems are becoming
subtler and more complex. The Mutual Security Pro-
gram must be adapted to meet the new circumstances.

We believe that the proposals I have outlined
this morning are "adapted to meet the new cir-
cumstances." They are based upon the high-qual-
ity studies you have commissioned and those made
by and for the executive branch. Many of these
agree to a remarkable extent not only on the value
to us of our military and economic aid to others
but also on changes in the form of our mutual se-
curity program which would make it more effec-
tive in promoting our national interests.

We accept responsibility for our proposals but
do not claim sole credit for them. We regard
them as being derived equally from the work of
the Congress and from the efforts of the execu-
tive branch. We belisve that their broad outline
is sound. We recognize that there are various
ways by which this outline can be carried out.
We invite and welcome your comments and fur-
ther consultation on the best means to develop
these proposals into the most effective instrument
of national policy.

World Trade Week, 1957

A PROCLAMATION'

Whb:eea8 exports and imports are important to our
economic strength and to the well-being of our people;
and

Whereas international commerce in all its aspects —
trade, travel and investment — is beneficial to the com-
munity of nations and conducive to the establishment of
a just and lasting peace in the world ; and

' No. 3177 ; 22 Fed. Reg. 2401.

Whereas our national trade policy, which seeks to pro-
mote the continued growth of mutually profitable world
trade, contributes both to our prosperity and to our
national security :

Now, THEREFORE, I, DwiGHT D. BiSENHOWEE, President
of the United States of America, do hereby proclaim the
week beginning May 19, 1957, as World Trade Week; and
I request the appropriate officials of the Federal Govern-
ment and of the several States, Territories, possessions,
and municipalities of the United States to cooperate in
the observance of that week.

I also urge business, labor, agricultural, educational,
and civic groups, as well as the people of the United States
generally, to observe World Trade Week with gatherings,
discussions, exhibits, ceremonies, and other activities
designed to promote a greater awareness of the importance
of world trade to our domestic economy and to the
strength of the free world.

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

Done at the city of Washington this eighth day of

April in the year of our Lord nineteen hundred

[seal] and fifty-seven, and of the Independence of the

United States of America the one hundred and

eighty-first.

/(_) c-«-s-^ /1-tXy CAiC-u- A<*c>^

By the President :

John Foster Dulles
Secretary o/ State

Anniversary of Fall of Bataan

Following are the texts of messages exchanged
on April 9 hy President Eisenhoioer and President
Carlos P. Garcia of the Philippines.

White House press release dated April 9

Message From President Eisenhower

On behalf of the people of the United States, I
send Bataan Day greetings to our friends in the
Philippines. Bataan Day is a solemn day for both
nations, for it is a time when we pause to remember
the price, and consider the meaning of freedom.

To try to recapture in words the deeds of the
men of Bataan is not possible. By their action
they expressed the true spirit of freedom better
than words could ever do. That spirit is what we
commemorate today.

We also commemorate the comradeship which
has bound our two nations together so strongly
in the past, and which continues to be so vital in
the anxious present.

April 29, 7957

679

The dangers which now confront us are in a
sense just as real as those that were faced on
Bataan fifteen years ago. So we continue to draw
upon the spirit of devotion, of comradeship and
of courage which is the noble legacy of Bataan.
DwiGHT D. Eisenhower

Message From the President of the Philippines

On this April 9 we are commemorating the
fifteenth anniversary of the Fall of Bataan. On
behalf of the jjeople of the Philippines I send
our best wishes to you and to the people of the
United States.

Bataan will always stand in our history as a
symbol of a heartrending struggle by the peoples
of two nations fighting side by side for the com-
mon goal of liberty, freedom, and democracy.

We are pledged that the spirit of Bataan shall
not perish and that those gallant American and
Filipino heroes wlio died for democracy shall not
have died in vain.

Today our two peoples are fighting the mor^
subtle enemy, Communism, which is trying to
subvert tlie ideals we fought for on Bataan.

The Filipino people know well the benefits of
liberty and freedom and will continue to fight
with the great spirit exemplified on Bataan to
preserve those ideals.

Carlos P. Garcia

U.S. and Saudi Arabia Confirm
Agreement on Cooperation

DEPARTMENT ANNOUNCEMENT

Press release 195 dated April 8

During the recent visit of King Saud, the Presi-
dent reached agreement with him on the need for
continued cooperation between Saudi Arabia and
the United States.^ Notes confirming this agree-
ment were signed by the Deputy Under Secretary
of State and the Ambassador of Saudi Arabia on
April 2, 1957. Projects to be implemented under
the agreement are to be worked out jointly in
subsequent technical discussions in Saudi Arabia.

The notes also provide for a renewal of the
Dhahran Airfield Agreement of June 18, 1951,^
for 5 years from this date [April 2].

Under the 1951 arrangement relating to the
Dhahran Airfield, the United States agreed to
assist in the technical operation of the airport at
Dhahran, to train certain air force personnel, and
to provide a military advisory group for the army.
The new agreement represents a refinement and
expansion of those previous United States ar-
rangements with Saudi Arabia. The United
States will provide, during the next 5 years, the
personnel, training equipment, and some of the
construction required for an air-force training
program, an augmented army advisory program,
and a limited program for the training of naval
personnel. In addition, there will be certaiii ad-
ditional construction designed to improve civil
aviation facilities at Dhaliran Airfield and an
improvement of the port of Dammam.

The United States has also agreed to continue
to sell military equipment in accordance with the
exchange of notes between the Governments of
Saudi Arabia and the United States of June 18,
1951.

EXCHANGE OF NOTES

Press release lOG dated April 8

Text of U.S. Note

April 2, 1957

^ For text of joint couiinuniquo issued on Feb. 8 follow-
ing discussions held by President Eisenhower and King
Saud, see Bulletin of Feb. 25, 1957, p. 308.

His Excellency

Sheikh Abdull^vh Al-Kiiattal,
Ambassador of Saiuli Arabia.

Excellency: I have the honor to refer to the
discussions which have taken place between His
Majesty King Saud and President Eisenhower
and representatives of our two Governments be-
tween January 30 and February 8, 1957, concern-
ing the relations between the two countries and
their common interest in promoting and consoli-
dating their cooperation. The Government of the
United States is now pleased to confirm its under-
standing of the general agi'eement reached during
these discussions.

1. The United States Government acknowledges
the comments of His Majesty King Saud to Pres-
ident P^isenhower and recognizes that Saudi

'■lUd., July 23, li)r>l, p. 150.

680

Department of Sfafe Bulletin

Arabia has a need to strengthen its armed forces
for the purposes of the defense of the Kingdom,
including the defense of the Dhahran Airfield.

2. In this connection, the United States Gov-
ernment will, within its constitutional processes,
continue its cooperation with the Kingdom of
Saudi Arabia by providing military equipment on
a reimbursable basis in accordance with the ex-
change of notes between the two Governments of
June 18, 1951, which provides that the equipment
shall be used to "foster international peace and
security within the framework of the Charter of
the United Nations." Equipment to be provided
will be in accordance with understandings reached
during the foregoing mentioned discussions. The
two Governments further agree that the equip-
ment to be pi'ovided will be used by Saudi Arabia
for the purpose of defending the independence
and territorial integrity of Saudi Arabia and for
the maintenance of internal security. It is under-
stood that the two Governments will arrange ap-
propriate terms of payment for such equipment.

3. The United States Government agrees to pro-
vide at no cost to the Saudi Arabian Government
certain additional construction at Dhahran Air-
field designed to improve civil aviation facilities.
The United States Government agrees also to pro-
vide a program of training for the Saudi Arabian
Air Force, to augment the present advisory train-
ing program for the Saudi Arabian Army and to
train Naval persomiel. Details of these services
will be as agreed.

4. In the same spirit and re-asserting the close
cooperation between the two countries, the United
States Government is pleased to be able to con-
tinue the use of the facilities granted at the
Dhahran Airfield in accordance with the Agi-ee-
ment of June 18, 1951 which is extended for a
period of five years from the date of this exchange.

5. To facilitate and improve the implementa-
tion of the Dhahran Airfield Agreement and re-
lated agreements, the two Governments agree to
hold further discussions in Saudi Arabia looking
toward possible additional understandings.

6. The United States Government, in consider-

ing the economic needs of Saudi Arabia, is pre-
pared to assist in mutually agreed projects. In
this connection, the expansion of the Dammam
port will receive primary consideration. It also
agrees to the provision of some engineering and
technical assistance, as well as lending its good
offices to assist in establishing credit arrangements
for economic projects. These matters will be dis-
cussed between the competent representatives of
the two Governments and confirmed by subse-
quent understandings.

7. These foregoing measures will be undertaken
in accordance with due legislative processes of
both countries.

If the foregoing is acceptable to the Govern-
ment of Saudi Arabia, the Government of the
United States agrees that this note and Your
Excellency's reply concurring in its content will
constitute firm agreement between the two Gov-
ernments.

Accept, Excellency, the assurances of my highest
consideration.

For the Secretary of State :

KoBERT Murphy

Deputy Under Secretary of State

Text of Saudi Arabian Note

Washington D. C. Ramadan 2, 1376H.

Corresponding to April 2, 1967 A. D.

The Honorable
John Foster Dulles
Secretary of State

Excellency : I have the honor to inform Your
Excellency that I have received your note dated
today, the text of which is as follows :

[Here is repeated the text of Deputy Under Secretary
Murphy's note of April 2, 1957.]

I have been authorized to inform Your Ex-
cellency that my Government accepts the contents
of Your Excellency's foregoing note.

Accept, Excellency, the renewed assurances of
my highest consideration.

Abdullah Al-Khayyal
Ambassador of Saudi Arabia

April 29, 1957

681

Report to the Founder on Foreign Affairs

hy Walter S. Robertson

Assistant Secretary for Far Eastern Affairs ^

There was in Japan in the past a tradition hon-
ored by the heads of government which, for me,
has a special appeal. The practice was for those
responsible for the government of the country to
repair periodically to their sacred shrines and
there report on the state of affairs to the nation's
illustrious dead. The custom was thought to pro-
vide continuity in the conduct of government and
to keep fresh in the minds of officials a sense of
what the nation stood for. The officials of our
own Government might well benefit from a sim-
ilar practice. Perhaps it should be a duty of our
officials to visit periodically one of the great
shrines of the American past — as I am doing to-
day— to be reminded of the spirit in which the
extraordinary experiment called the United States
was conceived.

Were it not that I feel so deeply the force of
what Thomas Jefferson stood for, were it not that
I wished particularly to speak with reference to
what he stood for, I shoidd not have felt it right
for me to accept the outstanding honor of an in-
vitation to talk to you at this place and on this
day. As it is, perhaps, you will consider what I
shall say this morning as a report respectfully ad-
dressed to your founder as well as to you, on the
situation in which, as I see it, the Nation finds
itself in the world today.

I might begin with one of the lesser reasons why
I feel so strongly drawn to Mr. Jefferson. He
also did time in the Department of State. He
served, of course, as Secretary of State under
President Washington. I like to recall the words
with which, among others, the President overcame
Jefferson's very great reluctance to take that of-

' Address made at tlie University of Virginia, Char-
lottesville, Va., on Founder's Day, Apr. 13 (press release
209 dated Apr. 12).

fice : "Its duties," the President wrote, "will prob-
ably be not quite so arduous and complicated in
their execution as you may have been led at the
first moment to imagine." I doubt if Washing-
ton's record of never having told an untruth was
ever in greater jeopardy than wlien he gave that
reassurance. As head of the Department of State,
Jefferson had, it should be noted, the support of a
truly impressive staff consisting of five copying
clerks, three at $500 a year and two at $800. Nev-
ertheless, after 4 years of it he resigned the office.
In response to the President's further appeal for
him to remain, he said of his decision : "In this
I am now immovable by any consideration what-
ever."

It is not hard to know how he felt. When he
had accepted appointment as Secretary of State,
in which office he was to be rewarded with calumny
and misrepresentation, he had already devoted 20
years to public service. Looking back upon it at
the time, he wrote : "Public employment contrib-
utes neither to advantage nor to happiness. It is
but honorable exile from one's family and affairs."
Having for 4 years myself been a daily witness of
the burdens upon the Secretary of State, I believe
I can understand something of the spiritual and
physical exhaustion with which Jefferson put
down those burdens.

To me, it is above all as a revolutionary tliat
Jeffei-son stands out as a man of everlasting sig-
nificance for his Nation and for mankind. True
revolutionaries are not common. Few men have
the hardihood of soul to be one. Those whom we
tend to think of as revolutionaries — doctrinaire
fanatics of stormy character whose bigotry reveals
their essential inhumanity — are not revolution-
aries in the true sense at all, but quite the contrai-y.
I like to compare with those types tlie picture of

682

Department of State Bulletin

Jefferson at Philadelphia on July 4th, 1776.
While the Congress furiously debated his immor-
tal handiwork, the Declaration of Independence —
one of the most portentous events in the history
of human liberty — Jefferson was engaged in tak-
ing periodic readings on a thermometer he had
purchased the day befoi-e for £3.15. A biographer
notes that he coolly recorded : "July 4th, 6 :00 AM,
68°; 9:00 AM, 7214°; 1:00 PM, 76°; 9:00 PM,
731/2°." In this picture, we see the Jefferson who,
without raising his voice, was to work a quiet
revolution in Virginia, eliminating the special
privileges of a towering and entrenched aristoc-
racy— the Jefferson who, in 1800, was to destroy
the Federalists with their Alien and Sedition Acts
and their violent antipathy to democracy, while
residing quietly at Monticello. We also see the
Jefferson who, in his restless and ever-youthful
passion for learning, for the truth, did not con-
sider an interest in the workings of a thermometer
unworthy to be indulged at a turning point in
human history. It is instructive to try to imagine
a Hitler or a Stalin similarly engaged while their
prospects of power and a place in history were at
stake.

The history of mankind is the history of free-
dom, Benedetto Croce declared. The issue — the
perennial, fundamental issue in human affairs —
was well understood by Jefferson. "Mankind by
their constitution," he wrote, "are naturally di-
vided into two parties, one, those who fear and
distrust the people and wish to draw all powers
from them into the hands of the higher classes.
And two, those who identify themselves with the
people, have confidence in them, cherish and con-
sider them as the most honest and safe although
not the most wise depository of public interests."

There was never any question as to which side
Jefferson was on. "Sometimes it is said that man
can not be trusted with the government of liim-
self," he declared in his first inaugural address
and asked: "Can he, then, be triLsted with the
government of others ? Or have we found angels
in the forms of kings to govern him ?" Many fine
and striking sentiments have been uttered by ora-
tors on democracy and the rights of the people.
In what Jefferson wrote and in his own life is
revealed a depth of awareness that gives the words
and example that have come down to us from him
a force that is very nearly unique. I give you as a
witness of the honesty and understanding on which
his political philosophy rested a simple observa-

tion he introduced casually in a letter — but an
observation that we might well pray could sink
deep into the hearts of men everywhere : "I have
been [unable] to conceive how any rational being
could propose happiness to himself from the exer-
cise of power over others."

Jefferson, Enemy of the "System"

Jefferson was the enemy of what we might call
the "System." There is one in every society and in
every age: a conspiracy to corner power, to de-
prive the generality of men of their birthright, to
withhold information and deny currency to any
but the official version of the truth. To be against
such a system is the hallmark of the true revolu-
tionary. To seek to replace someone else's system
with a system of one's own is a commonplace, and
most of those who claim the title of revolutionary
have only this object in mind. To seek the end of
all special systems and of all restrictions upon the
freedom of men to speak their minds and decide
their fate for themselves is much rarer than it
might seem. This was, however, Jefferson's
honest aim. He flayed the conspiracy of mon-
archy that then seemed to threaten the future of
mankind much as totalitarianism does today. He
flayed the conspiracy of special interests — "stock-
jobbers," he called them — who regarded the anti-
democratic oligarchy of contemporary Britain as
a model system of government. He opposed the
conspiracy against the exercise of freedom rep-
resented by tradition, by the tyranny of the past,
deriding the doctrine that maintained that "pre-
ceding generations held the earth more freely
than we do; had a right to impose laws on us,
unalterable by ourselves and that we, in like man-
ner, can make laws and impose burdens on future
generations which they will have no right to alter;
in fine, that the earth belongs to the dead and not
to the living." He was not afraid, either, to take
on what he saw as the conspiracy of the clergy
when they attacked his candidacy with such vi-
ciousness in the campaign of 1800. Today we may
thank the clergy for having done so, for the clash
gave us one of the most memorable declarations
in the history of freedom, the one enshrined on
Jefferson's monument in Washington: "I have
sworn upon the altar of God eternal hostility
against every form of tyranny over the mind of
man."

Jefferson well knew the significance for the

April 29, J 957

683

world of the American revolution against the sys-
tem that then prevailed over the rest of mankind.
"We are not," he said, "acting for ourselves alone
but for the whole human race. The event of our
experiment is to see whether man can be trusted
with self-government. The eyes of suffering hu-
manity are fixed on us with anxiety as their only
hope. ..."

I trust it is not vainglorious to suggest that the
eyes of humanity have been fixed upon us ever
since, always with hope, sometimes — let us ad-
mit— in disappointment, depending as we are
faithful or not to our early example. They are
fixed upon us today. The issues that preoccupied
the minds of Jefferson and his contemporaries
were never more vibrantly alive than they are
today. The paradox of our strife-torn age is
that, while the cause of freedom has made un-
exampled strides aromid the world and is the
currency of men's hopes everywhere, it has never
stood in greater peril. Ours has been an age of
revolution and counterrevolution. "\Ye might re-
call that Jefferson, familiar enough with the phe-
nomenon of counterrevolution, was also familiar
with the term. "A perfect counter-revolutioner"
is what he called PTamilton when the latter put on
mourning upon the death of King Louis XVI.
But counterrevolution today, uniting the abso-
lutism of the darkest past with the techniques
and weapons of the most advanced science, has
assumed protean forms that Jefferson never
dreamed of.

But perhaps I am overstating the case in sug-
gesting that he never dreamed of them. Napoleon
Bonaparte, the totalitarian of that time, was only
too well known to Jefferson, and what he wrote
about Bonaparte might well serve as an accurate
indictment, particular by particular, of the totali-
tarians of our own time. "He wanted totally the
sense of right and wrong," said Jeff'ei-son. "If he
could consider the millions of human lives which
he had destroyed or caused to be destroyed, the
desolations of countries by plunderings, burnings,
and famine, the destitutions of lawful rulers of
the world without the consent of their constitu-
ents . . . , the cutting up of establislied societies
of men and jumbling tliem discordantly together
again at his caprice, the demolition of the fairest
hopes of mankind for tlie recovery of their rights
and amelioration of their conditions, and all the
numberless train of his other enormities ; the man,

I say, who could consider all these as no crime,
must have been a moral monster, against whom
every hand should have been lifted to slay him."

The Conflict With Totalitarianism

For 15 yeai-s and more, now, our counti-y with
its allies has been combating by every practical
means the aggressive purposes of successive totali-
tarianisms— first the totalitarianisms of fascism
and nazism, and now the crusading, fanatical,
worldwide totalitarianism of international com-
munism. To this end we have fought all aroimd
the globe and American dead lie today in countries
most of our coimtrymen scarcely had heard of
30 years ago. Over a much gi-eater area still, the
products of American industry and agricultiu*e
have been poured out to strengthen other peoples
against the ambitions of foreign absolutisms. For
absolutism has threatened them and, in its most
virulent form, continues to threaten them today
with every kind of weajxjn, from conventional
military forces to cancerous agencies that work
from within, exploiting a weakness of tissue to
proliferate and infect the entire body of the nation.

Our success in combating totalitarianism has
been mixed.

Since, reluctantly, we accepted the responsibil-
ity of a leading world power at the start of World
War II, aggressive totalitarianism has been
thwarted in its aims on a worldwide front. In
1942 Hitler can have had little doubt that Europe
was his and that with it the world balance of
power must move inevitably in his favor; the
Japanese imperialists can have had little doubt
that East Asia and the Western Pacific were
theirs. In 1946 the Soviet Union can have had
little doubt that the Connnunist parties would
arise triumphant in a wrecked, despairing, and
disillusioned Europe and that the revolts then
brewing against European rule would turn in-
evitably, in accordance with doctrine, to the So-
viet advantage. All these expectations were dis-
appointed. The period through which we have
been i)assing has been made memorable also by
the granting of independence by the colonial
jiowers to a dozen or more countries comprising
over lialf a billion souls. This has been an his-
torically unparalleled development.

On the other hand, we nmst record that an
equally impressive roster of states, long i)roud of
their independence, have been enslaved by the

684

Department of Slate Bulletin

forces of international communism. If it is pos-
sible to travel from Morocco and Tunisia across
the Arab East through Pakistan and India to the
new nations of Southeast Asia and find scarcely
a country in which the principle of self-rule for
which we fought in 1776 has not made signal or
sweeping strides, it is also true that there is no-
where between Eastern Germany and central Ko-
rea an acre of land where the principles of our
revolution — of revolution itself — have not been
ruthlessly suppressed.

The end of the contest between freedom and
absolutism is, moreover, by no means in sight.
Wliile stretching indefijiitely ahead of us in time,
it seems also to have no limits in extent. The free
peoples are cliallenged in every field. The con-
test is not one of military power alone. It is a
contest of economic strength. It is a contest of
technological ability and of education. It is a
contest to determine which way of life, all in all,
is better equipped for survival, which will seem
to offer the greater promise to the vast masses of
mankind who are only now emerging from the
passivity of a tribal or tradition-bound past to
the dazzling and bewildering promise of the 20th
century.

Misunderstandings About U.S. Policy

It should be clear to us that in the conflict with
totalitarianism we are not trying to force our kind
of government on any other peoples. Indeed, it
is precisely the principle that no nation should
try to force its kind of government on another
that we are striving to establish, and any inliibi-
tion we ask others to accept we are prepared to
accept ourselves. Our goal is a world in which
no state will be able to impose its will or its
ideology on any other.

Another thing we are not seeking is any special
advantage for ourselves or our friends. We as-
pire to no colonies or territorial expansion. "If
there be one principle more deeply rooted than
any other in the mind of every American," Jef-
ferson declared, "it is that we should have nothing
to do with conquest." Despite our having had
such opportunities for aggrandizement as can
seldom have confronted a nation, we have been
faithful to Jefferson's precept. Despite the un-
conditional victories we have won with our allies
in two world wars, the territory under our flag
today is substantially smaller than it was in

1914 — and, surely, we would have it no other way.

The spectacle of a great power which has sacri-
ficed hundreds of thousands of its young men and
has drawn unsparingly upon its resources for the
relief of other people's needs, while seeking no
selfish advantage, has been regarded with scep-
ticism. And why not? To untold millions of
men any government at alli — their own and cer-
tainly any foreign government — has always been
an instrument of exaction and oppression. The
idea that a mighty world power could genuinely
consider that its interests were parallel with tliose
of an undernourished, ill-clothed village in Asia
or Africa has proved entirely too novel to some
of those who have suffered under alien rule.
Many of our actions have been misconstrued as
evidence of ulterior motives. It is not easy to
give up a habit of mind, even if it stands in the
way of hope.

The Communists are quick to exploit this sus-
picion of our motives. Their propaganda cease-
lessly portrays the entire fabric of our conduct
as one vast, diabolically conceived stratagem of
imperialism. They represent our aid programs
as being aimed at the subversion of others. They
represent that the bases we maintain abroad, at
quite an appalling cost to the American taxpayer,
are for the purposes of aggressive war.

We have to expect misunderstanding fi'om
others, and it should not too greatly disturb us.
What should disturb us, however, are any signs
that some among us ourselves may misunderstand
what we are about. One encounters sometimes
the point of view that any device that would give
us an advantage over the Communists is quite
proper for us to employ, however morally out-
raged we might be if it were employed against us.
When I encounter such individuals, I cannot help
wondering if they picture the Almighty as one
who is concerned not that right and truth and
decency shall prevail but that the state of which
they happen to be a citizen shall triumph over
others.

The danger in any protracted contest is that we
are apt to lose sight of what the contest is about.
We are apt to forget the issue that gave rise to
it — in this case the defense of freedom against
oppression, of decency against immorality — and
come to see it as a battle of the we's against the
they's in which the only important consideration
is that the we's win.

AprW 29, J 957

685

A few months ago on a crucial issue in the
United Nations we found ourselves on the opposite
side from two of our oldest allies. There was
considerable outcry in a number of organs of pub-
lic opinion in the United States which held that
we were wrong in the decision we had made.
That the situation was tragic I would be the last
to deny, but to say that what we did was wrong
is to misconstrue entirely the nature of the con-
flict that has so largely preoccupied us during the
past decade. We have not fought and toiled to
establish the rule of any particular set of na-
tions in the world; we have done so to establish
the rule of certain principles embodied in the
charter of the United Nations which we believe
are entitled to universal respect. Any state that
honors and defends these principles — the chief of
which is that no nation should attack another —
is our ally. Any state violating them, even under
painful provocation, will find us in opposition
concerning these issues regardless of how long
and how close our association has been.

If we uphold those principles that commend
themselves to men of good will, we shall never lack
for allies. We shall have a banner to which the
overwhelming majority of the human race is des-
perately eager to repair. If, on the contrary, we
make expediency the criterion of our policy and
demand that others accept our primacy, we shall
have taken a long step toward fulfilling the role in
which Communist propagandists ever seek to por-
tray us.

The problems we face, the tasks we must per-
form, are complicated and formidable, and it will
be the next generation rather than this one, I sus-
pect, that will see the end of them — if the world
does not blow up in our faces in the meantime.
We shall have to deal with a Communist bloc that
will have both the psychological and the physical
capability of launching, without warning, an at-
tack of tremendous force upon any part of the
free world. At the same time, we shall be having
to deal with a Communist bloc quite capable of
acting indefinitely as a paragon of peaceful intent,
challenging us to throw down our arms and lull-
ing into a false sense of security the peoples who
will have to endure painful sacrifices if military
establishments are to be maintained. In refusing
to leave ourselves militarily defenseless against
Communist attack we shall have to reconcile our-
selves to being branded by the credulous and the

short of memory as warmongers abroad and as
spendthrifts at home.

That will not be the end of our dilemma. As
Americans we shall find that it will depend upon
us, more than upon anyone else, to keep alive in
the world the spirit of revolution— the spirit that
will never make peace with authority or with any
form of tyramiy over men's minds. At the same
time, it will depend upon us more than upon any-
one else to stem the forces of disorder and poten-
tial chaos in the free world that the Communists
are in a position recklessly to abet. We shall not
be able to look on with indifference while the insti-
tutions that hold societies together go down before
rising seas of discontent.

There will be no prospect of human betterment
or the enhancement of freedom in a world given
over to turmoil. It is not the revolutionary spirit
or democracy that is the heir of chaos ; it is totali-
tarianism. We shall find ourselves inevitably
linked with regimes with political standards dif-
ferent from our own. We are so linked today.
Let me point out, however, that these regimes are
apt to be what they are because they have had
scant chance to be otherwise ; they have come into
being under the threat of extinction. They are,
however, no threat to the independence of their
neighbors. That, I would beg you to bear in
mind, is an important distinction. In this con-
nection, we might take heed of something Jeffer-
son said : "There is a snail-paced gait for the ad-
vance of new ideas upon the general mind under
which we must acquiesce. . . . you must give
[the people] time for every step you take."

Freedom vs. Communism

If — and again I make this exception — the world
can avoid nuclear war, which we believe the inter-
national Communists are now scarcely more likely
to welcome than we are, then it should be possible
to distinguish in some degree the kind of world in
which the example of freedom and the precepts of
communism will contend in the future. The arena
is likely to be primarily in these underdeveloped
countries I touched on earlier in my remarks,
whose inhabitants, nmnbering in the hundreds of
millions, are only now being aroused out of narrow
traditional patterns of existence by the explosive
impact of modern ideas. Jefferson foresaw the
changes that were bound to come witli the spread
of the light of knowledge — or, as he identified it,

686

Department of State Bulletin

of the art of printing. "As yet,"' he wrote, "that
light has dawned on the middling classes only of
the men in Europe. The liings and the rabble, of
equal ignorance, have not yet received its rays;
but it continues to spread, and while printing is
pre.served it can no more recede than the sun re-
turn on his course."

Throughout the underdeveloped world — and
this includes by far the largest part of it — the
"middling classes," as Jefferson called them, are
growing in numbers and importance as a result of
the increasing commerce in goods and ideas with
the more advanced countries of Europe and
xVmerica. Composed of those who are neither
conspicuously possessed of property nor conspicu-
ously dispossessed of it — professional men, tech-
nologists, government officials, factory managers,
labor leaders, writers and publicists, and military
officers — these classes are gradually displacing
from the center of the stage "the kings and the
rabble" of which Jefferson spoke. This is a proc-
ess that has been taking place in our own country,
where it is already far advanced. The extremes
of society that Jefferson mistrusted — the specially
privileged and the totally disinherited — ^have all
but disappeared among us, absorbed into the
growing "middling classes." In the lands which
heretofore have lain outside the scope of 20th-cen-
tury civilization, these "middling classes" will be
the arbiters of the future. And they will be cast-
ing about for an answer to their problems — cast-
ing about fairly desperately probably, in view of
the condition in which most of them will find their
countries. I have little doubt that what we shall
have to say to them will be far more meaningful
and far more promising than anything emanating
from Moscow or Peiping, provided we remember
what it is that America is all about. It is because
of that belief that I have devoted so much of my
talk to your founder. It is in the direction of his
ideas, I am convinced, that the most powerfid
current of mankind's aspirations lie.

If we are steeped in those ideas, we shall not

mistake ourselves. We shall not appear before
the world in the guise of any system or any au-
thority. Sometimes it seems that bewildered man-
kind seeks to submit itself to an authority, to have
a dogma handed down to it, but in the end men
turn against those who make slaves or children of
them and fight for the opportunity to be them-
selves, to find their own solutions. It should be
our purpose to help bring about the kind of world
in wliich that opportmiity will be theirs.

Events in East Germany, in Poland, in Hun-
gary have shown that the most rigorous oppres-
sion, the most preclusive totalitarian indoctrina-
tion cannot still the hunger for freedom. Indeed,
it is the youth of those countries, who have known
nothing but Communist rule, who are in the van-
guard of rebellion. Despite savage suppression
the latent forces for change throughout the Com-
munist world will continue to grow. In the
U.S.S R. itself slowly but surely the role of the
"middling classes" will be steadily enlarged. The
tone of society in countries now enslaved by the
international Communists will be set less and less,
I think, by all-powerful oligarchs and a dehu-
manized peasantry and proletariat and increas-
ingly by the professional men, the engineers, the
middle-ranking government workers, artists and
writers, and a better-educated populace who will
more and more demand a portion of the things
that make life worth living.

The change has already begun, and we are be-
ginning to see the effects of it. The Hungarian
youth brutally slaughtered by Soviet tanks in
the streets of Budapest have not died in vain.
"The light that has been shed on mankind . . .
continues to spread." Perhaps only one thing
could be expected to set it back. "We exist," said
Jefferson, "and are quoted, as standing proofs
that a government, so modeled as to rest contin-
ually on the will of the whole society, is a prac-
ticable government. Were we to break to pieces,
it would damp the hopes and the efforts of the
good, and give triumph to those of the bad through
the whole enslaved world."

April 29, 7957

687

The United Nations and Responsibilities for tiie Future

iy Francis 0. Wilcox

Assistant Secretary for International Organization Affairs '■

I should like to direct attention to the changing
composition and role of the General Assembly of
the United Nations. It is not surprising that our
main focus should be on the General Assembly.
A quick look at the events of the past decade leaves
us with the impression that the United Nations
today is a somewhat different organization from
that conceived at San Francisco.

In 1945 the Security Council was hopefully ex-
pected to maintain and restore peace. In this
Council power and responsibility were neatly com-
bined. However, the 10 years of cold war, of
sharp differences between the Soviet orbit and the
free world, and, in particular, of repeated abuses
of the veto by the U.S.S.R. have pushed the Coun-
cil into a secondary role. The Council today,
while still available, tends to be most useful pri-
marily in situations where there is a possibility
of East and West finding a common ground. In
other situations it has been faced with increasing
disuse.

In contrast, the role of the General Assembly
has outstripped the expectations of the framers of
the charter. The General Assembly was designed
to be the less powerful organ. It was scheduled to
meet in regular annual sessions. It could not
make decisions as could the Security Council —
only recommendations. Its main weapon was dis-
cussion and debate. Power and responsibility
were not realistically reflected in it — the vote of a
small state equaled that of a large iwwer. If
increasing disuse has characterized the Security

'Address made before the Seventh Annual Public
Forum on World Affairs of tlie Pittsburgh Foreign Policy
Association at Pittsl)urgh, Pa., on Apr. 12 (press release
203 dated Apr. 11).

688

Council, quite the opposite is true of the

Assembly.

The Role of the General Assembly

If "past is prologue," then it would seem helpful
to consider the implications for the future of the
enlarged General Assembly and the greater re-
sponsibilities that have been assumed in the past
few years by this body. These are changes which
give new dimensions to the United Nations and
which therefore pose for its members new prob-
lems and, I think, new opportunities.

In the last year and a half the United Nations
has grown from 60 to 81 members. A preponder-
ance of tlie increase, it is interesting to note, repre-
sents newly sovereign states in Africa, the Near
East, and the Far East — commonlj' referred to as
Afro-Asia.

In the last 6 months the General Assembly has
assumed and discharged unprecedented responsi-
bilities under the Uniting-for-Peace resolution
which was adopted in 1950 following the Com-
munist aggi-ession in Korea." The machinery pro-
vided by this resolution was used for the first time
when the Security Council was prevented by nega-
tive votes of some of its permanent members from
dealing with the crisis in the Middle East and
Hungary.

The increasingly important role played by the
General Assembly and its greatly enlarged mem-
bership, taken together, are causing concern to
some membei's of the United Nations and to some
able students and critics of world affairs. Some

' For text, see Bulletin of Nov. 20, 1050, p. 823.

Department of State Bulletin

of our stanch allies are wondering whether the
Assemblj' can ell'ectively face up to critical issues
wliicli tlireiiten or break the peace.

1 think it would be useful to review briefly some
of these fears and warnings. Perhaps in the
process we can form a judgment as to whether the
Assembly is in fact in danger of becoming a
Frankenstein monster about ready to destroy it-
self as some would have us believe.

First, the General Assembly, it is contended, is
becoming more and more addicted to bloc voting,
with loyalty to bloc taking precedence over any
real attempt to meet issues objectively and on their
merits. This is regarded as an irresponsible, even
dangerous, development when a coalition vote of
over one-third can be mustered by tlie Afro-Asian
bloc alone.

Second, it is charged that there is an increasing
tendency to water down resolutions in order to get
a two-thirds supporting vote where important is-
sues are under consideration. This tendency, it is
contended, is producing diluted resolutions of lit-
tle force or effect.

Third, the principle of sovereign equality, un-
der whicli each state has one vote, has come in for
renewed criticism as giving an unreal and dis-
torted reflection of the relative power and influ-
ence of the several states in international affairs.
Is it right, it is asked, for a small, economically
and politically weak state to weigh equally in the
balance with a large and strong state when the
votes are counted? Does not this encourage a
tendency to "gang up" on the larger state?

Fourth, it is argued that the General Assembly
has a double standard of justice and morality —
one for states which abide by its recommendations,
another for states that defy them. This also raises
the question as to whether we are at fault in re-
sorting to the United Nations on issues which it is
powerless to resolve and which, therefore, may
result in a sense of frustration or loss of faith in
the organization itself.

A Look at the Record

These charges are serious ones and deserve our
careful consideration. I believe a look at the rec-
ord of the 11th General Assembly will help us de-
termine their validity. With regard to all of
them I would like to make the general observation
that they imply a greater authority and power

April 29, 7957

423590—57 3

than the General Assembly actually has. The
composition and role of the General Assembly
may be changing, but its duties as set forth in the
charter remain unchanged. It is a recommenda-
tory body, whose influence depends on the volun-
tary cooperation of its members.

Bloc Voting

Let us take the matter of bloc voting. The only
really consistent bloc voting in the General Assem-
bly— and it is carried on with monotonous regu-
larity— is done by the U.S.S.R. and its satellite
states. This is a pattern long established ; it is not
a new phenomenon. The fears currently ex-
l^ressed are that the Afro-Asian group of nations
may, as a matter of agreed policy, vote together
and control Assembly action on impoi-tant matters
in a manner contrary to our interests. This, in
my opinion, is more a mathematical possibility
than a logical exiJectation or certainty. The
mathematical facts are as follows.

As presently constituted, when all 81 members
are voting, 54 votes are needed for the Assembly
to act on matters requiring a two-thirds majority.
If all the Afro- Asian states were to combine, they
would have a blocking minority of 28 votes, suffi-
cient to block action on matters requiring a two-
thirds vote and enough to give them a major voice
in deciding all important issues. By contrast, in
the "new"Assembly, the Latin American States
now have but 24 percent of the vote, non-Commu-
nist Europe 19 percent, the Soviet bloc 11 percent,
and the old British Conunonwealth countries 5
percent.

In practice, however, the Afro-Asian gi-oup
does not regularly vote as a bloc, and, when it
does, it is apt to be on issues for which there is
overwhelming support from states outside the
Afro- Asian area. Again, I think we should look
at the recoi'd of the last General Assembly.

Take first the vote on the principal resolutions
relating to the Middle East crisis. Here, cer-
tainly, one might expect to see Afro-Asian soli-
darity. Yet out of 11 important resolutions ap-
proved between November 1, 1956, and February
2, 1957. this bloc voted as an entity on only 2, and
in both these cases the resolutions received total
votes of 74 in favor, 2 against, and 2 abstentions.
Indeed, the general observation may be made that
the Afro-Asian group displayed considerable

689

unanimity in casting affirmative votes on the reso-
lutions which were adopted by impressive or over-
whelming majorities. In other words, they did
not act as an irresponsible splinter group in oppo-
sition to the will of the majority.

The voting record on the Hungarian situation
demonstrated less unanimity, although there was
an increasing tendency for all United Nations
members, including those from Africa and Asia,
to be more sharply critical of brutal Soviet actions
as they became revealed. On this issue, it might
be observed, we would have welcomed a solid
Afro-Asian bloc vote. But on only 3 out of 10
resolutions were more than 20 Afro- Asian votes
cast affirmatively, and these dealt with the less
contentious issues of relief for the Hungarian
refugees. The vote on the remaining 7 resolu-
tions reflected wide splits within the bloc. The
point I want to emphasize is this : the Afro- Asian
group does not constitute a monolithic bloc.

Of course, there is a tendency for states with
common interests and problems to vote together
when they think this will serve those interests.
These tendencies, wherever they exist, present
problems to all who wish to see international
issues dealt with on their merits. At the same
time, we should not exaggerate the extent to which
such bloc voting prevails nor should we exaggerate
the practical consequences.

"Watered Down" Resolutions

Let us consider the record on the "watering
down" of resolutions. Now it is true that a resolu-
tion is seldom approved in committee in the form
in which it was first submitted. This would be a
remarkable thing not only for the General Assem-
bly but for any political deliberative body. We
have only to consider, for example, the tortuous
course of a piece of legislation, or a simple resolu-
tion, in our own Congress.

This process of compromise is certainly a demo-
cratic process. It is an attempt to find common
ground and secure the widest possible area of
support. It is an essential step if the General
Assembly is to comply with the charter injunc-
tion to liarmonize the action of nations. It exer-
cises a moderating influence on the action of
states and places a premium on reasonable policies
reflecting broad rather than narrow interests.

A good example of the wisdom and effectiveness
of this process is the General Assembly's handling

of the Algerian problem. You will recall that
France a year ago withdrew her delegation when
Algeria was inscribed on the agenda. This year,
in the 11th General Assembly, France, while deny-
ing the Assembly's competence, did not oppose in-
scription. Wlien the matter came up before the
Political Committee in February 1957, a strong
resolution drafted by IS Afro-Asian states was in-
troduced. While this resolution no doubt ex-
pressed the convictions of the drafters, it was
obvious from the beginning that it could never
receive the two-thirds vote necessary for adoption.
Actually no vote was ever taken on this resolution
as a whole.

On February 11, in an effort to reach a measure
of agreement, a milder resolution was introduced
by Japan, the Philippines, and Thailand. The
following day a number of other powers tried their
hand at drafting an acceptable resolution. Both
these resolutions came to a vote in committee and
were adopted. Neither, however, received a two-
thirds majority.

On February 15 the General Assembly in ple-
nary session heard the Political Committee report
failure to secure two-thirds support for any resol-
ution on Algeria. At this juncture the powers
which had fathered the two resolutions that re-
ceived a simple majority in committee introduced
in plenary a moderate compromise resolution.
This resolution, expressing the hope that a peace-
ful, democratic, and just solution to the Algerian
problem would be found in conformity with the
principles of the charter, was adopted by a unan-
imous vote.^ France refrained from voting, in
keeping with its position that the General Assem-
bly is not competent to deal with the Algerian
situation.

This result could be called, I suppose, an exam-
ple of a "watered down" resolution. I believe it
more accurate to describe it as a practical com-
promise arrived at after exhaustive debate in
which all sides had an opportunity to express their
views. The debate cleared the air, and substantive
action by the Assembly which would have ham-
pered rather than promoted a solution was
avoided. It is clear from the unanimous vote that
during this debate the states principally con-
cerned had achieved understanding, if not ap-
proval, of each other's attitudes and interests. All

• Ibid., Mar. 11, 1957, p. 421.

690

Department of Slate Bulletin

members faced the fact squarely that the General
Assembly on its own could not provide a solution
to the Algerian problem. Progress, however, was
possible, and progress was made because the As-
sembly acted responsibly in maintaining an at-
mosphere conducive to a practicable solution in
the future by the parties directly concerned.

General Assembly consideration of the question
of Cyprus followed very much the same pattern.

I believe that the Assembly's record on the dis-
armament question was also an example of respon-
sible action. Assembly members recognized fully
that before disarmament can be achieved the
principal powers must reach agi-eement through
quiet negotiations. The Assembly was aware that
the 81-nation forum is not the right place to try to
reach agreement on highly technical details in-
volving the security of many peoples and many
countries. For these reasons it voted unanimously
to refer all the disarmament proposals before it
to the Disarmament Commission and its Sub-
committee for prompt, quiet, and detailed con-
sideration.* This is an excellent example of the
Assembly's realizing what it should or should not
do in a given situation.

Of course, not all compromise resolutions passed
by the Assembly are generally regarded as the best
result that might have been achieved. For exam-
ple, a good many delegations considered the As-
sembly's last resolution on the deployment of the
United Nations Emergency Force in Egypt* as
something less than satisfactory. It would ob-
viously have been preferable if the Assembly had
been more precise in defining Unef's role in the
Gaza Strip or at the entrance to the Gulf of Aqaba.
But here, as in other cases, the outcome was
determined by tlie prevailing balance of interests
in the Assembly, in this case by those who favored
less precision. Nevertheless, the result, while not
ideal, did make possible the effective interposition
of the Unef between Israeli and Egyptian forces.

Now I realize that such halfway measures will
never satisfy those who expect the United Nations
to make quick, clear-cut, and enforceable decisions
based on agreed concepts of right and wrong in a
given issue. Nevertheless, such precise and com-
plete solutions to problems are not always possible.
International issues today often are susceptible of
only modest solutions. The Assembly's willing-

' Ibid.. Feb. 11, 1957, p. 225, and Mar. 11, 1957, p. 423.
• Ihid., Nov. 19. 1956, p. 793.

ness to face up to its limitations as well as its ca-
pacities in concrete instances represents a forward
step toward even greater responsible action in the
Assembly.

The Voting Formula

One of the very first actions that a newly sov-
ereign state takes in the international field is to
apply for admission to the United Nations.
Membership in this body is looked upon as the
final stamp of approval by the international com-
munity. Once admitted, the new state is anxious
to demonstrate its ability to contribute to the ob-
jectives of the charter and equally desirous, I
think, to assert and maintain its new-found inde-
pendence and sovereignty. The new state tends
to avoid actions which would make it appear that
its vote is "in someone else's pocket."

I believe that, by and large, these new states,
and the so-called small or weak states, have acted
responsibly and in the common interest. There
are occasions, of course, when a state or group of
states advances proposals which are impossible or
extremely difficult for the United Nations to carry
out and which place the major powers in a difficult
predicament. On such occasions, in particular,
we may feel that the one-state, one-vote foimula is,
in fact, an inequity and perhaps some consider-
ation should be given to weighted voting devices.

But it is hard to blame these states for using the
General Assembly, on occasion, as an opportunity
to make the major powers sit up and take notice.
Sometimes, when the latter are at loggerheads,
such action may serve a decisively constructive
purpose.

The General Assembly is as near as the world
has come toward the creation of a parliament of
nations. As an international institution it tends
to reflect accurately the underlying political, eco-
nomic, and social conditions in the world. It
should draw upon, as does a democracy, the energy
and intellectual resources of all its members. The
atmosphere of equality which prevails encourages
it to do this. We should also recall that the As-
sembly, as a recommendatory body, has built-in
safeguards against the imposition of the will of
the majority on an opposing minority, even if this
is a minority of one. Its recommendations may be
disregarded.

However, where the majority is overwhelming
and the justice or good sense of a proposal is

April 29, 1957

691

abundantly evident, opposition or noncompliance
by one or more of the great nations will be at the
peril of turnino; world public opinion against
them. As the General Assembly has grown, this
has been revealed as one of its great unwritten
powers. No nation can lightly accept a position
of defiance to its limited authority.

The Double Standard

I would like to say a word now about the so-
called "double standard." The failure of the
General Assembly to bring about the withdrawal
of Soviet forces from Hmigary, as contrasted with
its success in the Middle East crisis, has become a
cause of concern.

The record of Assembly action on these two
issues does not support the charges made against
it. The resolutions invoked against the Soviet
Union and the Hungarian Communist regime
were more strongly worded than in the case of
the action in the Middle East. The Assembly
climaxed its action with outright condemnation of
the U.S.S.R. — a step which has blasted the under-
pinnings from the Soviet propaganda campaigns
of the past years." Frustrating United Nations
action has cost the Soviet Union dearly.

We must face the fact that the possibility for
such frustration of United Nations action was
written into the charter when great-power
unanimity was required for Security Council de-
cisions. It was hoped, of course, that unanimity
on questions of aggression or threats of aggi'ession
would prevail, but we were as insistent as any
other power in including this provision. It is
true that the Uniting-for-Peace resolution em-
powers the General Assembly to act in cases where
the Security Council fails to act. But this was a
resolution, not an amendment to the charter. The
fundamental responsibilities and authority of the
Security Council and the General Assembly re-
main unchanged.

There are and there will remain those within
the community, the state, and world who attempt
to defy the law. In the absence of enforcement
power or a "decent respect to the opinions of man-
kuid," they may — at least in the short run — get
away with it. It is true that this is a threat to the
rule of law, but it is not its abrogation.

The Soviet Union remains charged by mankind

with a brutal and flagrant violation of the charter
in the case of Hungary. With regard to General
Assembly action, I believe the cause of freedom
was served within the capacity of that body to do
so in the circumstances and that the cause of Soviet
communism was dealt a serious and irreparable
blow.

I think we underestimate the telling and lasting
effect on governments and people throughout the
world of the long days and nights of incisive de-
bate and investigation of the Hungarian issue by
the General Assembly. As the details of Com-
munist ruthlessness, cynicism, and falsehood were
revealed, the eyes of many were opened for the
first time to the true meaning of Soviet imperial-
ism. This was particularly true among the repre-
sentatives of states who, for a variety of reasons,
have tended to take a noncommital or detached
stand, particularly on issues with cold-war over-
tones.

By way of illustration, I would like to refer to
an episode in the 11th General Assembly when the
Hungarian matter had been under debate for
nearly a month. A resolution of condemnation
of the Soviet Union was before the Assembly.
The delegate from Burma asked for the platform
and spoke as follows :

"We have hoped," he said, "that the truly modest
steps proposed by this General Assembly . . .
would have been unanimously adopted. We ab-
stained and waited during the week of 2 December,
under the expectation that surely the Secretary-
General of the United Nations would be agreeably
received in any member country at any time. We
abstained and waited, while the Secretary-General
told us that there was a chance that he would be
received in Hungary at a stipulated date within
the next few days." Then, in telling the Assembly
that he was now prepared to vote condemnation of
the U.S.S.R., the Burmese delegate said, "We do
this to keep our self-respect. After all responsible
waiting for action has passed, we can do no less.
There," he said, "speaking of Hungary, but for
the Grace of God go we." '

At the conclusion of this debate, Burma joined
14 other Afro- Asian nations in condemning So-
viet violation of the charter. In my opinion, this
exposure and condemnation of Communist im-
perialism has served to strengthen the bonds of

'For text of the General Assembly's resolution, see
iUd., Dec. 24 and 31, 1956, p. 979.

692

' U.N. (ioc. A/rV. 617 dated Dec. 12.

Department of State Bulletin

the free world. It may well turn out to be one of
the greatest blows suffered by the Soviet Union
and the satellite system in the past decade. In
any consideration of a "double standard" it must
be weighed on the positive side of General Assem-
bly accomplishment. For any measure that re-
veals the methods of despotism and suppression
of freedom serves the cause both of the oppressed
and of the free who wish to remain free.

Problems for the Future

Tn discussing the changing composition and
role of the General Assembly I have attempted to
place the problems encountered in the light of our
experience to date. We will continue to have these
problems, and new ones will evolve as the re-
sources within the General Assembly are devel-
oped.

In summation, I would like to suggest some
guidelines for the future.

We should not assume that there will be solid
bloc voting or mechanical majorities in the Gen-
eral Assembly except for the Soviet Union and its

satellites.

We must remember that states generally act in
what they conceive to be their own best interests.
There are varying gi-adations of interests on vari-
ous problems. There is much in international in-
tercourse that tends to imify— and as much which
causes disunity.

We should keep in mmd that, when a two-thirds
vote is required, it is often necessary to negotiate
among the regional groups or blocs making up the
Assembly. If, however, we continue to demon-
strate constructive leadership and do our utmost
to identify our interests with the interests of
world peace and of progress, then I believe the
General Assembly is not a body to be feared, now
or in the future.

In discussing earlier the question of weighted
voting, I did not mean to close or dispose of the
issue. For it may well be true that the General
Assembly docs have a voting system which tends
to give a distorted reflection of the power and in-
fluence in the world of the various members.
However, as I indicated earlier, there is evidence
of a responsible restraint exercised by members
of the Assembly. This is due, in large part, to an
awareness that a General Assembly resolution,
when passed, is still only a recommendation and
that its effectiveness depends upon the degree to

April 29, 1957

which it is followed— particularly by the stronger
and more influential powers.

The mere fact that a bloc of powers can muster
a two-thirds vote on an important issue does not
necessarily mean that they will do so. I cite as
a case in point the reaction at the General Assem-
bly to the question of the invoking of sanctions
against Israel for failure to withdraw her forces.
One of the Middle Eastern states had actually
introduced such a sanctions resolution. It was
very possible at the time that such a resolution
could have passed by a two-thirds majority. But
this potential majority exercised a commendable
restraint and caution; they waited to learn, in
particular, what the position of certain powers
would be whose support might be decisive. As
it turned out, the resolution was never brought to
a vote and Israeli forces were eventually
withdrawn.

Such responsible action is an example of the
General Assembly's being used as an instrument
through which our interdependent world realizes
and accepts its interdependence.

The more influential states must recognize that
power and responsibility go hand in hand and that
their positions of leadership cannot be taken for
<n-anted. The less influential states should take
care not to impair or destroy by their actions the
usefulness of the organization that protects them
and gives them an equal voice in the councils of
nations.

The United Nations should be recognized for
what it is, an aid to progress toward a more peace-
ful world. It is complementary to traditional
diplomacy, not a substitute for it or for responsible
international conduct. It is not a political Univac,
where you feed the problems in one side and take
the answers out the other.

In this connection we have often recognized that
there are certain international problems that can
be more effectively handled outside the context of
the United Nations. We have also recognized that
we can never use the United Nations as a substitute
for bold, imaginative, and realistic foreign policies
and programs of our own— that we must continue
to pursue many of our national interests and ob-
jectives through various regional arrangements
and bilateral relationships.

I think there is no doubt that the United Na-
tions must develop more effective pressures to get
members to abide by its decisions and recom-

693

mendations where threats to the peace are in-
volved. In this connection, I believe the creation
and use of the United Nations Emergency Force
is an important step in the evolution of voluntary
peace-enforcing devices. The experience gained
through this current experiment may prove in-
valuable in the future.

I look to the future of the United Nations, and
of the role of the General Assembly in it, with
optimism. It has recently faced crucial issues and
has emerged a stronger and in some ways a more
mature organization. We and the other member
states will be called upon to assess its limitations
and exploit its resources if it is to discharge well
the purposes for which it was founded. The
United States will continue to contribute its full
measure of support to this end.

U.S. Replies to Canadian Note
Regarding E. H. Norman

Press release 201 dated AprU 10

FoUowing is an exchange of notes between the
Can/idian Embassy and the Department of State
concerning references made to E. H. Norman^ the
late Canadian Ambassador to Egypt, dwimg the
hearings of the Senate Internal Security
Subconvmittee}

Text of U.S. Note

April 10, 1957

Excellency : I have the honor to refer to your
note No. 155 of March 18, 1957 protesting, on be-
half of the Canadian Government, against certain
references to Mr. E. H. Norman, the late Canadian
Ambassador to Egypt, which were made during
hearings of the Senate Internal Security Subcom-
mittee and which were later made public.

I should like, at the outset, to express to the
Canadian Government and to Mrs. Norman my
sincere condolences and those of my colleagues
over the death of Ambassador Norman in Cairo.

As for the substance of your note, I wish to as-
sure you that any derogatory information de-
veloped during hearings of the Subcommittee was
introduced into the record by the Subcommittee

' For a Department announcement concerning earlier
discussions between tlie Canadian Embassy and the De-
partment, see Bulletin of Apr. 1, 1957, p. 539.

on its own responsibility. As you are aware, un-
der our system of government, the Executive
Branch has no jurisdiction over views or opinions
expressed by Members or Committees of the
United States Congress. The investigation being
undertaken by the Subcommittee lies entirely
within the control of the Subcommittee.

It is the earnest desire of my government to
continue to maintain the friendliest relations with
the Government of Canada and it deplores any
development from any sources either American
or Canadian which might adversely affect those
relations.

Accept, Excellency, the renewed assurances of
my highest consideration.

Christian A. Herter

Acting Secretary of State
of the United States of America

His Excellency
A. D. P. Heeney,

Ambassador of Canada.

Text of Canadian Note

No. 155 Washington, D. C, March 18, 1957.

Sir, I am instructed by my Government to bring
to the attention of the United States Government
the allegations of disloyalty which have been made
in the United States against Mr. E. H. Norman,
the Canadian Ambassador to Egypt, a high and
trusted representative of the Canadian Govern-
ment. The irresponsible allegations to which I
refer, and which in any event would concern mat-
ters to be dealt with by the Canadian Government
and not by a Subcommittee of the United States
Senate, were contained in the textual record of
the Internal Security Subcommittee, of the Sen-
ate Committee on the Judiciary, which was offi-
cially released by that body to the press in Wash-
ington, D. C, at 4 :30 p. m. on March 14.

I am instructed to protest in the strongest terms
the action taken by an official body of the Ivegis-
lative Branch of the United States Government
in making and publishing allegations about a
Canadian official. This procedure is both surpris-
ing and disturbing because it was done without
the United States Government consulting or even
informing the Canadian Goverimient and with-
out taking account of relevant public statements
made earlier by the Canadian Government.

The Canadian Government examined similar

694

Department of State Bulletin

allegations as long ago as 1951, and as the result of
an exhaustive security enquiry the full contidence
of tlie Canadian Government in Mr. Norman's
loyalty and integrity has been contirmed in all
respects. The conclusions of the Canadian Gov-
ernment were made public at that time and must
have been known to the Subconnnittee particularly
as the State Department was requested at the time
and again on December 11, 1952 to draw them to
their attention. T am attaching the texts of two
statements made by the Canadian Government on
this matter in 1951.

The repetition of such irresponsible allegations
in the Subcommittee and the publication on the
authority of this official body of a record contain-
ing such allegations is the kind of action which is
inconsistent with the long-standing and friendly
cooperation characterizing relations between our
two countries.

Accept, Sir, the renewed assurances of my high-
est consideration.

A. D. P. Heeney

The Honourable John Foster Dulles,
Secretaty of State of the United States,
Washington, B.C.

Annex 1

Following is text of press release issued by the
Department of External Affairs on August 9,
1951:

"Mr. Norman was subject to the normal security in-
vestigation by the appropriate authorities of the Ca-
nadian Government, according to rules laid down which
apply to all members of the Department of External
Affairs.

"Subsequently, reports reached the Department which
reflected on Mr. Norman's loyalty and alleged previous
association with the Communist Party. These reports
were very carefully and fully investigated by the security
authorities of the Government, as a result of which Mr.
Norman was given a clean bill of health, and he therefore
remains a trusted and valuable official of the Department."

Annex H
Following is the text of a statement made in
Ottawa on August 16, 1951 by the Secretary of
State for External Affairs, Mr. Pearson :

"Immediately on receipt of a news report on Thursday
last, confirmed shortly afterwards by our Embassy in
Washington, that the name of a Canadian official had
been mentioned in the hearings of a U.S. Sub-Committee
on Internal Security, the verbatim record of those hear-
ings was requested. It was impossible to get that ver-
batim record until Monday afternoon. After examining
this record, a message was immediately sent to our Em-

t<pt\\ 29, 1957

bassy in Washington requesting them to inform the State
Department of our surprise that the name of a highly
respected and trusted senior official of the Canadian Gov-
ernment had lieen mentioned in a way which could not fail
to prejudice his iwsltion.

"We emphasized our complete confidence in Mr. Norman
and requested that the Congressional Sub-Committee be
informed of this fact, and of our regret and annoyance
that his name had been dragged into their hearings by
tlieir Coun.sel on the basis of an unimpressive and un-
substantiated allegation by a former Communist.

"We expressed the hope that the Committee would in-
struct their Counsel to act differently in future in matters
which concerned officials of this Government, adding that
we expect that if in investigations by committees of this
liind in Washington, names of Canadian officials appeared,
that these names should not be made public but that the
normal practice should be followed of sending them to
the Canadian Government through normal diplomatic
channels. The allegations made could then be investi-
gated here and the results of the investigation given to
all those concerned.

"We have our own methods of security investigation in
Dttawa, which may not be the same as those employed
in Washington, but which we consider to be both fair
and effective."

U.S.-Canada Joint Commission
Holds Executive Session

The International Joint Commission (U.S.-
Canada) announced at Washington on April 5
the completion of a 3-day executive meeting. The
Commission, which was created to implement the
Boimdary Waters Treaty of 1909, consists of three
Commissioners from the United States and three
from Canada. The present chairmen are Len
Jordan for the United States and Gen. A. G. L.
McNaughton for Canada. The Commission deals
with problems mvolving the use of waters which
flow along or across the U.S.-Canadian boundary,
the longest in the world, and other questions which
the Governments of the two comitries refer to it
for joint study and report.

At this meeting the Commission received prog-
ress reports from the various international engi-
neering boards and technical advisory boards
which it has established to advise it on specific
matters and mapped the course of its future oper-
ations.

The remedial works at Niagara Falls, designed
and constructed under the supervision of the Com-
mission, will likely be completed within the next 2
or 3 months. The remedial works will preserve

695

and enhance the beauty of the falls, the crest of
which has been erodmg at an alarming rate for
many years, and will at the same time permit the
generation of increased amounts of hydro power
on both sides of the river. It was learned also
that the final cost of the works will be substan-
tially less than the original estimate of some $17
million which was announced 4 years ago. An in-
ternational ceremony to mark completion of the
project will be held at Niagara Falls in Septem-
ber.^

In its report of 1954 to the Governments of Can-
ada and the United States concerning hydroelec-
tric developments in the Saint John Kiver Basin,
the Commission recommended that for greater ef-
ficiency the New Brunswick Electric Power Com-
mission system and the Maine Public Service Com-
pany's system should be interconnected. Under
the provisions of the Fernald Act the export of
hj'droelectric power from the State of Maine was
prohibited. This law has now been repealed by
the Legislature of that State, and the Canadian
authorities have reciprocated by authorizing the
construction of the necessary transmission facili-
ties and the exportation of surplus New Bruns-
wick power to the State of Maine, thus clearing
the way for interconnection of the two systems, as
recommended by the Ijc.

Investigation of the international tidal power
potential of Passamaquoddy Bay, on the Maine-
New Brunswick border, is proceeding on schedule
and field operations will begin in earnest in a few
days as the necessary equipment arrives on the
scene.^ A comprehensive investigation to deter-
mine the eifect which the project would have on
the important fishing industry of the area is being
carried out simultaneously by fisheries experts of
both countries. The Commission will visit the
area at the end of June.

Maj. Gen. Emerson C. Itschner, Chief of Engi-
neers, United States Army Corps of Engineers,
and U.S. chairman of the International Columbia
River Engineering Board, presented that Board's
26th progress report to the Ijc. Engineering
aspects of the Board's final report, which is now
nearing completion, were discussed with the Com-
mission. The chairman of the U.S. Section of

' For text of agreement on payment of expenditures on
remedial works at Niagara Falls, see Bulletin of Oct. 18,
ID.'H, p. 588.

' For background, see ibid., Auk. 20, 1956, p. 322.

the Commission presented a chronology of the
U.S. Government's two applications for the con-
struction of a dam and reservoir on the Kootenai
River ^ near Libby, Mont., and mquired as to the
status of Canadian studies on possible diversion of
part of the river's flow to the Columbia River at
Canal Flats, British Columbia. He pointed out
the urgent need for flood control on this river and
the other benefits which would accrue from this
project and requested that definitive action be
taken with respect to the present application at an
early date. The chairman of the Canadian Sec-
tion advised that studies on the use of waters of
the Kootenay and Columbia in Canada, including
the diversion of these waters, are now well ad-
vanced and that the conclusions reached by the
authorities concerned would be announced when
available. He said, meanwhile, consideration
would be given to observations made by the chair-
man of the U.S. Section and a reply would be
presented shortly.

Following presentation of the progress reports
of the International Souris-Red Rivers Enguieer-
ing Board and Souris River Board of Control,
alternative proposals for the apportionment of the
waters of the Souris River, as between the Prov-
inces of Saskatchewan and Manitoba and the State
of North Dakota, were discussed by the Com-
mission.

The Technical Advisory Board's report to the
Commission indicated that steady progi'ess is
being made by municipalities and mdustries along
the connecting chamiels of the Great Lakes in the
campaign to eliminate pollution of these waters.
With a view to overcoming the problem of pollu-
tion discharged from ships plying these waters,
the Commission plans to hold a public hearing in
the fall, at which the shipping interests and all
afl'ected parties will be given an opportunity to be
heard.

The Technical Advisory Board on Air Pollution
reported continued improvement in the smoke
emission performance of ships plying the Detroit
River during 1956. The Commission authorized
the continuation of its voluntary control program
for the abatement of vessel smoke on the Detroit
River for the 1957 navigation season. The
Board's final report to the Commission is now in
the course of preparation and tentative findings

" Spelled Kootenai in tlie United States, Kootenay in
Canada. For backKrouuU, see ibid., .Tune 7, 195-1, p. 878,
and Dee. 12, 1955, p. 980.

696

DeparfmenI of State Bulletin

and recommendations were discussed -witli the
Conmiission.

The International Lake Ontario Board of En-
gineers and the International St. Lawrence Board
of Control submitted reports on the progress of
studies on the regulation of the levels of Lake
Ontario. Gail Hathaway, former special assist-
ant to the Chief of Engineers, submitted his res-
ignation as U.S. member of the International
Lake Ontario Board of Engineers. The Com-
mission expressed its gratitude to Mr. Hathaway

for his valuable and devoted services since the in-
ception of the Board.

The Commission considered the terms of a sup-
plementary order which it will issue with respei;t
to regulation of the levels of the Namakan Chain
of Lakes on the Minnesota-Ontario boundary. A
public hearing was held at International Falls,
Minn., last year, at which interested parties were
heard regarding the recommendations of the In-
ternational Eainy Lake Board of Control in this
i-espect.

Munitions Control and the Electronics Industry

hy Leonard H. Pomeroy

Chief, Compliance Branch, Office of Munitions Control ^

Today I would like to tell you something about
the State Department's responsibility for exercis-
ing control over the traffic in arms with specific
reference to the field of electronics.

For many years the control over the interna-
tional traffic in arms has, in one form or another,
been a function of the Department of State. It
has been applied, of course, in an effort to further
both world peace and national security. 'Wlien
we deal with arms and implements of war, we are
not dealing with ordinary commodities that figure
in world trade, such as cotton, wheat, automobiles,
and the like. Instead we are dealing with lethal
items designed primarily to kill or incapacitate.
Thus the need to exercise close supervision over the
international movement of arms becomes readily
apparent.

There is nothing recent about the traffic in arms
as an international problem. It presented a prob-
lem to the American colonists when they were
fighting the Indians— Indians armed with foreign-
made gims. It presented a problem when the

' Address made before the Radio-Electronics-Television
Manufacturers Association at Washington, D. C, on Mar.
13.

pirates of the Barbary states were defying the
great powers of Europe in the Mediterranean Sea.
But it is only in the 20th century that the traffic-in-
arms problem has really become a control problem,
and that is largely because of our modern mass-
production techniques, the development of new
weapons of warfare, more rapid means of trans-
portation and communication, and our present-
day, complex international political institutions.
The development of new weapons of warfare and
new techniques of warfare in the 20th century has
made arms-traffic control a really important ele-
ment in considerations which are demanding the
attention of the Department of State in the con-
duct of our foreign relations.

Beginning in 1905, a policy of applying restric-
tions on arms exports, so as to strengthen recog-
nized governments, discourage revolutions, and
maintain order and stability in Latin America and
elsewhere in the world, was adopted by the United
States Government. This policy was applied
again and again near the beginning of the century
in the cases of Mexico, Cuba, Honduras, Nica-
ragua, and Brazil and was the basis for the action
taken in cooperation with other world powers in

April 29, 1957

697

the case of China in 1919. The Government did
not exercise a formal licensing control in those
days, but restrictions were imposed by a Presiden-
tial proclamation whenever the outbreak of civil
strife seemed to warrant such action. In that early
period the only statutory sanction was the Joint
Eesolution of Congress of April 22, 1898, a Span-
ish-American War measure to prevent the ship-
ment of coal and contraband to Spain.

The United States cooperated with the other
major powers of the world after the First World
War in seeking to prevent the vast surpluses of
arms left over after that war from being sold to
revolutionists. It participated in the conventions
of St. Germain of 1919 = and of Geneva of 1925.=
Those conventions developed a code for the inter-
national supervision of the traffic in arms.

In the 1930's this country took a leading part in
promoting international disarmament and arms-
traffic control measures, and a formal national ex-
port and import licensing system was incorpo-
rated in the Neutrality Act of 1935.

The Second World War brought about a repeti-
tion on a larger scale of the surplus problem which
characterized the period following World War I
and also brought with it a complex series of new
situations. During the war a further vast ad-
vance in technological developments had taken
place which, of course, added to the complexity of
the control problem. Following the war there
was a series of uprisings in various parts of the
world, particularly against colonial authorities.
Also in the period following World War II, the so-
called cold war between the Communist bloc and
the Western nations lias given rise to a new polit-
ical situation and has resulted in an embargo on
trading with the Soviet bloc in militarily strategic
commodities, as well as in United States Munitions
List articles. All of these factors have made the
control problem of today more complex and more
important to our national security.

In 1954 the most recent export control law was
included in the Mutual Security Act of that year.
Section 414 of that act states that the President is
authorized to control, in furtherance of world

' Convention for the Control of the Trade In Arms and
Ammunition, signed Sept. 10, 1919; for text, see Foreign
Relations of the United States, 1920, vol. I, p. 180.

' Convention for the Supervision of the International
Trade in Arms and Ammunition and in Implements of
War, signed June 17, 1925; for text, see ibid., 1925, vol.
I, p. 01.

peace and the security and foreign policy of the
United States, the import and export of arms,
ammunition, and implements of war — a function
which the President, by Executive order, has dele-
gated to the Department of State. The jurisdic-
tion of the Department of State in this field is fur-
ther defined by the United States Munitions List,
which designates those articles which are covered
by the term "arms, ammunition, and implements
of war." The Departments of State and Defense,
incidentally, have concurrent jurisdiction in carry-
ing out tlie function of designating articles for in-
clusion on that list.

Electronics Equipment on U.S. Munitions List

There are some eight types of articles on the
United States Munitions List which come under
the general description of electronics equipment
and which I will briefly review :

1. Control mechanisms and control systems for
guided missiles and pilotless aircraft. This is a
category of items which shows the modern mili-
tary adaptations of electronics equipment.

2. Fire-control and gun-tracking equipment.
Up-to-date fire-control equipment is most impor-
tant in the operational use of both land- and ship-
based artillery. Gun-tracking equipment is usu-
ally a piece of radar equipment which controls
antiaircraft guns and keeps them continuously
pointed at a target.

3. Radar of all types, including guidance sys-
tems and airborne or ground equipment therefor.
The "master and slave station" technique which
is employed in the case of guidance systems pro-
vides for the remote control of aircraft, missiles,
vehicles, or watercraft by the use of the electronic
beam.

4. Electronic countermeasure and janaming
equipment. The importance of this type of equip-
ment in thwarting free-world broadcasts to the
East is well known.

5. Military underwater sound equipment.
Sonar and all types of marine radar are considered
militarily important, and therefore such articles
are under the State Department's export and im-
port licensing jurisdiction.

6. Electronic navigational aids specially de-
signed for military use, such as radio direction-
finding equipment.

7. Radio distance-measuring systems, such as
Shoran, and hyperbolic grid systems, such as

698

Department of State Bulletin

Raydist, Loran. and Decca, providing a "master
and slave station'' technique in transmitting and
receiving electronic impulses, enable aircraft to
navigate over water with a good deal of accuracy
and have other inijjortant military uses.

8. Any military communications electronics
e(}uipment specially designed for military use is,
of course, also included under the category of mili-
tary electronics.

AVitli regard to components and parts, the De-
partment of State is given jurisdiction in the fol-
lowing cases:

1. If the components or parts are specially de-
signed for military use and are used primarily for
military purposes;

2. If the components or parts are specially de-
signed for or intended for use with airborne
equipment.

On the other hand, if the component or part,
though originally designed for military equip-
ment, has lost its distinctively military character,
it may be transferred from State Department to
Commerce Department jurisdiction. Such a case
is that of cathode ray tubes, used in television sets.

Control of Technical Data

The development of new techniques of arms
production and intensive intelligence collection
and espionage efforts on the part of potential
enemy powers has broadened the concept of muni-
tions controls to embrace the control of the expor-
tation of militarily significant technical know-
how. The Department of State has had a leading
role in the formulation of governmental policies
on militaiy information control, particularly since
the passage of the Espionage Act of 1917. provid-
ing in part for the control of military secrets.
Through an interagency coordinating committee
the Departments of State and Defense have co-
operated in the formulation of policies govern-
ing the disclosure of such information to certain
foreign governments.

As a result of the ever-increasing momentum in
American inventive and manufacturing genius,
the technological aspect of munitions control is
becoming increasingly more vital. Technical data
relating to munitions and all materials bearing a
security classification are specifically included in
the United States Munitions List. Under the
provisions of section 414 of the Mutual Security

Act and the implementing regulations, a license
issued by the Secretary of State is required in all
cases for the export of unclassified technical data
relating to articles on the United States Munitions
List when they are destined for the Sino-Soviet
bloc countries. A license is also required for the
export of such data to all other destinations ex-
cept when otherwise exempted by the Depart-
ment's regulations. Exemptions are provided for
technical-data exports to non-Communist coun-
tries in the following four instances:

1. \A1ien in published form;

2. When available by subscription or purchase
to any individual without restriction;

3. Wlien granted a second-class mailing privi-
lege by the United States Government ;

4. "Wlien freely available at public libraries.

When a license is required, a flexible system of
control has been devised in this field which is
specially adaptable to varying industrial situa-
tions. Special clearance procedures have been de-
veloped, for instance, in the case of applications
for licenses to export technical data with applica-
tions for foreign patents to enable the foreign
filing of patents within the convention year, a
convention year being the permissible lapse of
time by international convention within which an
applicant for a United States patent may obtain
prior rights abroad by filing in the foreign country.

In the regulatory process in this field, as well
as in the formulation of procedural rules and
policy criteria, exchanges of views with industry
have been practiced to foster an appreciation on
the part of both industry and Government of mu-
tual problems and to develop a mechanism of con-
trol which is fair to industry, workable, and within
the intent of the law.

Division of Administrative Responsibilities

Perhaps it would be helpful if I reviewed some
of the mechanical aspects of licensing controls.
In a sense, there is a dichotomy of responsibility in
the administration of the law because the Office
of Munitions Control merely passes on the ques-
tion of whether arms shipments shall or shall not
be imported or exported and, depending on that
decision, issues or refuses to issue licenses to im-
port or export arms shipments. Customs officers
stationed at the ports of entry or exit police the
matter by checking the shipments against the au-

April 29, 1957

699

thorizations set forth in licenses issued by the De-
partment. In the sense, therefore, that the De-
partment of State determines the question of the
exportability or the importability of shipments
and the collectors of customs enforce the decision
at the border point, there is a division in the ad-
ministration of controls between the Bureau of
Customs and the Office of Munitions Control.

Furthermore, there are also two readily dis-
tinguishable aspects in the enforcement fimction
exercised by the Bureau of Customs which are dis-
charged by separate branches of that bureau, i. e.,
the collectors of customs on the one hand and the
Customs Agency Service on the other. The cus-
toms collectors, with their staffs of customs inspec-
tors and other personnel, exercise strict super-
vision of all outgoing and incommg shipments to
insure compliance with the rules and regulations
of the Secretary of State. The staffs attached to
the Customs Agency Service investigate reported
violations to ascertain all the facts, and customs
investigators prepare detailed reports and analyses
of such reported violations. They lay the basis
for legal action against violators when that is indi-
cated and assist in procuring any documentation
and depositions which may be needed in subse-
quent legal proceedings.

Current internal administration of the licensing
system by the Office of Munitions Control is based
upon the principle of functional specialization,
separating the responsibilities connected with
intelligence and information collecting, investi-
gation, enforcement, and prosecution from the
responsibilities connected with the determinatioji
and application of policy criteria. In the admin-
istration of the munitions control function, this
functional specialization permits more effective co-
ordination of the license issuance responsibilities
with the policy and security determination phases
of review. Consequently, a more direct and much
more efficient application of overall policy objec-
tives to particular shipments of munitions is pos-
sible. The need for correlation with national pol-
icy is, of course, more vital in the munitions field,
where the items being shipped have important im-
l^lications for national security and international
peace, and in this respect it differs from the li-
censing function as applied to shipments of non-
munitions articles, both as to administrative
methods employed and policy objectives sought.

Wliile a large number of proposed shipments

are of routine character, many clearly involve com-
plex policy questions containing elements of sig-
nificance to the security interests of the United
States and other aspects of United States foreign
policy. In the evaluation process, one of the prin-
cipal criteria for determining the degree of con-
trol to be exercised over articles licensed for export
by the Secretary of State is the war jjotential of
the articles proposed to be exported. The expor-
tation of articles having insignificant war po-
tential is authorized with practically no delay,
whereas the exportation of articles possessed of
high military potential, such as guns, tanks, mili-
tary aircraft, and vessels of war, is subject to the
most careful scrutiny to assure that the shipment
is in conformity with current policies.

International Cooperation in Arms-Traffic Control

It has long been established by students of the
problem that no effective control of the interna-
tional traffic m arms can be achieved except by
international agreement. I have mentioned as
early efforts in this direction the convention of St.
Germain of 1919 and tlie Geneva convention of
1925. Since the Second World "War the nations of
the North Atlantic Treaty Organization have co-
operated in embargoing to the Sino-Soviet bloc
military items on the United States Munitions
List, as well as certain groups of strategic items
not on that list. Since most of the governments
of Western nations feel tlie same way about arms
smuggling and since the members of Nato include
the principal arms-producing countries, it has
been possible to enlist informal cooperation on the
part of those countries. Members of the Seato
and Anzus alliances can also be relied on to co-
operate in this field and take parallel action in
arms-traffic cases. The Anzus treaty links Aus-
tralia, New Zealand, and the United States; and
the Seato treaty links Australia, France, Great
Britain, New Zealand, Pakistan, the Philippines,
Thailand, and the United States in defensive
alliances.

The United States, of course, is also obligated
under the charter of the United Nations to help
establish and maintain international peace and
security in the words of the charter, "with the
least diversion for armaments of the world's hu-
man and economic resources." As a member of
the United Nations, the United States is obligated
to control the exportation of munitions to any

700

Department of State Bulletin

state against which the United Nations is taking
preventive or enforcement action.

The United States has also cooperated with the
Council of the Organization of American States
and other signatory nations under the Rio Pact
to thwart the threat of Communist infiltration and
tlie forcible overthrow of constituted governments
in Latin American states. Thus the munitions
control activities of the Department of State were,
in part, responsible for bringing the Communist
threat in Guatemala of a few years ago to public
attention.

Many of the objectives of munitions control are
directly related to those of world disarmament,
and the techniques developed to aid in the admin-
istration of munitions control can be expected
eventually to serve as the guideposts for interna-
tional disarmament control at such time as an
accord is reached on that important project.

Now in conclusion let me make the following
observations by way of summary.

As a result of the technological developments
of recent years, military electronics is assuming an
increasingly more important role in the weapons
arsenals of modern military establishments. The
United States Munitions List covers those articles
in this field which contribute to the effectiveness
of military equipment. It is the policy of this
Govermnent to exercise control over the exporta-
tion and importation of such equipment and over
the exportation of technical data relating thereto
in the light of our national security and foreign
policy interests. The Department of State, which
is charged Avith the administration of the law,
seeks the loyal cooperation of American industiy
and citizenry as a most essential element in the
successful administration of the law, and it tries
in every way to adjust its procedures to take into
account commercial considerations consistent, of
course, with the realization of our national policy
objectives to further world peace and the security
and foreign policy of the United States.

President Requests Further Data
on Imports of Safety Pins

Wliite House press release dated March 29

The President on March 29 asked the U.S.
Tariff Commission for further information on
several questions relating to the Commission's re-

April 29, 1957

cent investigation of the effect of imports on the
domestic safety-pin industry. With the addi-
tional information, the President stated that he
would be "in a better position to make a decision"
on the recommendations of the Commission.

On January 30, 1957, the Commission had re-
ported to the President its 4^2 decision recom-
mending an increase in the tariff on imported

safety pins.

Senator Harry Flood Byrd, Chairman of the
Senate Committee on Finance, and Representative
Jere Cooper, Chairman of the House Committee
on Ways and Means, were advised by the Presi-
dent of his action.

President's Letter to Edgar B. Brossard, Chairman
of Tariff Commission

March 29, 1957

Dear Mr. Chairman : I have carefully studied
the Commission's report of January 30, 1957 on
its investigation under Section 7 of the Trade
Agreements Extension Act of 1951, as amended,
regarding safety pins.

Additional information on a number of points
raised by the Commission's report would be help-
ful to me in reaching a decision in tliis case.

It would be very useful to have the production,
sales, employment, and profit data on the two
safety pin producers not presently included in the
Commission's report as would similar data on the
industry's operations on uncapped pin wires. In
addition, I would like to have data on the other
products made on safety pin machines and on the
firms producing plastic-capped safety pins.

Supplemental information on the industry's
profit experience would also assist me : annual data
for safety pin operations and for the total oper-
ations of the plants involved for 1935-39 and for
1946-50; the basis for the industry's allocation of
costs, particularly administrative and selling costs,
to its safety pin operations; and the impact upon
the industry figures of the one firm which reported
losses in four years since 1950 and whether that
firm's operations have been materially affected by
factors other than imports. Finally, clarification
of the nature and source of the industry's over-
capacity, referred to in the Commission's report,
would be desirable.

I would appreciate the Commission's supplying
this additional information. It may, to the ex-

701

tent necessary to avoid improper disclosures, be
submitted in confidence. With these points clari-
fied, I would be in a better position to make a
decision.

Sincerely,

DwiGHT D. Eisenhower

President Decides Against Increase
in Tariff on Straight Pins

White House press release dated March 29

The President on March 29 declined to accept
the recommendation of the U.S. Tariff Commis-
sion for an increased duty on straight (dress-
makers'or common) pins.

On January 30, 1957, the Tariff Conunission had
reported to the President tlie results of its investi-
gation on straight pins under section 7 of the
Trade Agreements Extension Act of 1951, as
amended. ' Although the Commission found
imanimously that imports have caused no serious
injury to the domestic straight-pin industry, the
Commission concluded, in a 4-2 decision, that im-
ports threatened such injury in the future. Ac-
cordingly, the majority of the Commission recom-
mended that the duty on imported straight pins be
increased.

In identical letters to Senator Harry Flood
Byrd, Chairman of the Senate Committee on
Finance, and Representative Jere Cooper, Chair-
man of the House Committee on Ways and Means,
the President noted that the domestic industry's
sales, prices, and profits have increased since 1952.
The President also noted that wage rates in the
industry have increased steadily and that there
was no imemployment in the industry. The Presi-
dent did not find that the evidence in this case was
"of such a character as to leave no doubt that
actual injury is imminent."

President's Letter to Senator Byrd and Representa-
tive Cooper

March 29, 1957

Dear Mr. Chairman : The United States Tariff
Commission submitted to me on January 30, 1957
a report of its investigation on straight (dress-

•CJopies of the report may be obtained from the U.S.
Tariff Commission, Washington 25, D. C.

makers' or common) pins under Section 7 of the
Trade Agreements Extension Act of 1951, as
amended. Although the Commission found
imanimously that imports have caused no serious
injury to the domestic straight pin industry, the
Commission concluded, in a four to two decision,
that imports threatened such injury in the future.
Accordingly, the majority of the Commission rec-
ommended that the duty on imported straight pins
be increased.

As the Commission's report shows, imports of
straight pins have increased since 1948. Domestic
production and sales have apparently declined
from the peak post-war years and from the pre-
war average. Profits and employment are less
than they were in the highest post-war years.
The consumption of straight pins, however, has
also declined.

Aside from the comparison with a few peak post-
war yeare, the sales, employment, and profits of
the domestic industry do not appear to have been
endangered. Hourly wage rates of workers in
the industry have increased steadily and there is
no unemployment. In fact, the record suggests a
shortage of experienced operators of pin-making
machines.

Sales of the domestic industry have moved
fairly steadily upward since 1952 and, in the face
of increasing imports, their prices have increased
considerably more than the wholesale price index
generally and more than the index for fabricated
non-structural metal products.

Tlie profits of the domestic industry have in-
creased fairly steadily since 1952. The tariff con-
cession was already well in effect during 1950 and
1951, the only post-war years in which profits sub-
stantially exceeded those of 1955, the last full year
for which the Commission's report presents sta-
tistics. For 1955 and for the portion of 1956 for
which the facts were given, furtliermore, the rate
of profit, as a percentage of sales, on straight pins
exceeded for the first time the producers' rate of
profits on tlie total output of their phints manu-
facturing, among other things, straight pins.

When the threat of injury, rather than present
injury, is the ground of decision, I believe, as I
have said before, tliat the evidence bi'ought for-
ward to substantiate the judgment of threat must
be of such a character as to leave no doubt that
actual injury is imminent. I am not persuaded
that the evidence in this case is of such a character.

702

Department of State Bulletin

I am not, therefore, authorizing an increase in
the existing import duties on straight pins.
Sincerely,

DwiGHT D. Eisenhower

President Decides Against Increase
in Tariff on Violins and Violas

White House press release dated March 30

The President has declined to accept the recom-
mendations of the U.S. Tariff Commission for an
increased dtity on imports of violins and violas
valued at not more than $25.

On January 29, 1957, the Tariff Commission had
reported the results of its investigation under sec-
tion 7 of the Trade Agreements Extension Act of
1951, as amended, regarding violins and violas
valued at not more than $25 each. ^ The Commis-
sion, by a 3-2 vote with one Commissioner absent,
found that the domestic industry was being seri-
ously injured.

In identical letters to Senator Harry Flood
Byrd, Chairman of the Senate Committee on Fi-
nance, and Representative Jere Cooper, Chairman
of the House Committee on Ways and Means, the
President stated that this was an unusual case be-
cause "imports, in general, do not undersell the
domestic product." The President said that al-
though he was "sympathetic with the problems of
the domestic manufacturer," he was not persuaded,
on the basis of the clear facts "that his case satis-
fies the statutory test." Nor did the President
believe that "an increase in duties, which would
raise the cost of music instruction for young peo-
ple throughout the country, holds much promise of
solving the difficulties of the domestic manu-
facturer."

President's Letter to Senator Byrd and Representa-
tive Cooper

March 29, 1957
Dear Mr. Chairman: I have carefully re-
viewed the United States Tariff Commission's
report of January 29, 1957 on its investigation
under Section 7 of the Trade Agreements Exten-
sion Act of 1951, as amended, regarding violins
and violas valued at not more than $25 each. The
Commission, by a three to two vote with one Com-

' Copies of the report may be obtained from the U.S.
Tariff Commission, Washington 25, D. C.

April 29, 1957

missioner absent, found that the domestic industry
was being seriously injured and recommended that
the rate of duty on violins and violas valued at
not more than $25 be increased.

Violins and violas of this type are manufac-
tured in the United States by one company with
about thirty production employees. This com-
pany as the Tariff Commission report points out,
is in difficulties, and imports, although still con-
siderably lower than in the pre-war period, have
increased since the tariff concessions of 1948 and
1951. As a prerequisite to escape clause relief,
however, the law requires that the difficulties of
the domestic producer be substantially attribut-
able to increased imports, resulting at least in part
from a tariff concession, of like or directly com-
petitive products.

It should be made clear that this is an unusual
case. The imports, in general, do not undersell
the domestic product. The price of nearly all of
the imports exceeds the price of the great bulk of
the domestic product. The school market, the
most important market for violins and violas in
the United States, has preferred the higher priced
imports. The imported product meets the stand-
ards of quality which have been established for
the school market. These standards, while not
binding, are widely followed by the schools. The
bulk of the domestic production, the manufac-
turer acknowledged, does not meet these stand-
ards. The domestic industry's product is largely
sold in the folk music market.

A small portion of the domestic output does
purport to meet the school standards. This part
of the domestic production is higher priced than
most of the imports, but the domestic manufac-
turer has acknowledged that even his better prod-
uct meets consumer resistance in the school market
for reasons quite apart from price.

Although I am sympathetic with the problems
of the domestic manufacturer, I am not persuaded
that his case satisfies the statutory test. Nor do
I believe that an increase in duties, which would
raise the cost of music instruction for young
people throughout the country, holds much prom-
ise of solving the difficulties of the domestic
manufacturer.

I have decided, therefore, that escape clause
action would be inappropriate in this case.
Sincerely,

DwiGHT D. Eisenhower

703

INTERNATIONAL ORGANIZATIONS
AND CONFERENCES

United Nations Commission
on the Status of Women

Folloiving are two statements made at the 11th
session of the U.N. Commission on the Status of
Women hy Mrs. Lorena B. Hahn^ U.S. represent-
ative.

STATEMENT OF MARCH 21 ON ACCESS OF
WOMEN TO EDUCATION

U.S./U.N. press release 2647

To assure educational opportunity for girls,
three steps appear necessaiy: (1) enough school
facilities for all, (2) compulsory school attend-
ance, and (3) enforcement of school laws.

Provision of Enough Schools for Ail

I say all, rather than all girls, because I am
sure we believe every boy should have an educa-
tion, just as every girl should have an education,
and, where there are not enough schools to go
round, the problem is more schools for boys and
girls alike. Tliis matter of enough schools is an
endless task in all countries. Schools wear out
and have to be replaced; new towns and cities
grow up and new schools must be provided where
the children live; standards of what constitutes
adequate school facilities are constantly rising,
so that each community wants to have the finest
in classrooms, teachers, textbooks, and play spaces.

But at the moment we are concerned particu-
larly for girls who have no schools at all, or at
best only a few grades of education. A few years
ago the International Conference on Public Ed-
ucation suggested that, where school buildings
had been provided for boys but not for girls,
students might be placed on a double shift, with
the boys attending in the morning and the girls
in the afternoon, or vice versa. In the United
States, where scliools have been provided for all
for many years, there is often a district in which
school buildings must be used on double shift

while new schools are being built or because the
number of children in a particular grade exceeds
expectation. Tliis situation is easier where co-
education is acceptable and girls and boys can
attend classes together. It is always a tempta-
tion to feel that new schools can be postponed, or
at least that the school for girls can be postponed.
But children cannot wait — they need to be edu-
cated now. A girl who cannot go to school as a
child has missed that opportunity forever and
must catch up, if at all, only at the expense of
time and energy needed for other things in her
mature years.

Compulsory School Attendance

Since compulsoi-y education laws apply equally
to girls and boys, our Commission has adopted
resolutions at several sessions urging the impor-
tance of legislation of this type.

Reports from Unesco confirm that in countries
having compulsory education the proportion of
girls in school tends to be greater than elsewhere.
Compulsory education is especially helpful in
areas where it has not been usual to send little
girls to school and parents may therefore hesitate
unless they are required to do so. A gi-eat many
countries have already adopted school attendance
laws covering at least elementary education. The
report before us^ makes it clear that we should
be especially vigilant where such laws do not exist.
However, as we all know, laws in themselves are
of little value unless there is adequate machinery
for law enforcement. I come thei-efore to my
third point.

Law Enforcement

"V^Hien we begin to think about enforcing com-
pulsory education, for girls as well as boys, we
come back at once to the problem of more schools.
We cannot expect effective law enforcement until
there are enough schools for all. But we should
think of law enforcement as more than a threat.
Often the reason a child is not in school is illness
in the family, or lack of suitable clothes, or diffi-
culty in transportation, or some other problem in
which social services are needed. This is one of
the areas in which technical assistance can be of
great value, in the field of health as well as edu-
cation.

• U.N. doc. E/CN.6/291.

704

Department of State Bulletin

Course of Study for Girls

In this brief analysis I have not touched on
courses of study which should be provided for
girls. This is another field to which we may want
to give attention, perhaps in some future meeting.
Our view in the United States is that girls and
boys should have access to the same courses
throughout, even though we can expect that their
natural choices will result in a larger proportion
of girls choosing such subjects as domestic sci-
ence. Wliat is of fundamental importance, for
girls as well as boys, is that they be provided
with a broad and thorough understanding of the
great ideas of our world, of the humanities and
the sciences, so that they can be possessors of cul-
ture and can enjoy and appreciate the arts. It is
not enough to think of education as leading only
to a vocation or profession, though such training
should be available in equal measure. Neither
is it enough to think of education for girls merely
in terms of homemaking, though all agree that
an intelligent and educated mother can contribute
far more to her family and to her country because
she has had years in school. The purpose of edu-
cation, for girls as well as boys, is the develop-
ment of the whole person to his or her greatest
capacity. That is the goal, not a cramping into
particular patterns or preparation for particular
tasks. In the words of the Universal Declara-
tion of Human Rights,

Education shall be directed to the full development
of the human personality and to the strengthening of
respect for human rights and fundamental freedoms.

The UNESCO report in E/CN.6/291 summarizes
a variety of activities in the Unesco program
bearincr on the access of women to education.
This report makes it possible for the Commission
to understand and evaluate the Unesco program
as it relates to the status of women. Similar re-
ports of this type will be useful in future Com-
mission meetings.

While some sections of the report indicate
progress, the information on exchange of persons
is disturbing in that the proportion of women
receiving foreign grants is small. For instance,
^omen received only 4 out of 35 regional grants
5 out of 35 youth grants, 6 out of 65 gi-oup travel
grants, and 2 out of 125 worker grants The
problem does not appear to be a lack of fellow-
ships, since a considerable number are available
to both sexes and a reasonable proportion are open
to women only. The number of women interested

April 29, 1957

in international study may be less than men, but
the disproportion in fellowships granted appears
unduly great. It is probable that tradition, fa-
voring men, as well as the much smaller relative
numl^r of women qualified to apply for fellow-
ships, also plays a role.

Nongovernmental organizations might be en-
couraged to bring additional information about
fellowships to the attention of women. The
UNESCO publication. Study Abroad, lists such op-
portunities with important details. National or-
ganizations can help their members by publishing
the listings available to their members. I mider-
stand the American Association of University
Women provides information on international
fellowships in their Quarterly Journal.

The UNESCO report in E/CN.6/301 shows that
women are being used as teachers in almost all
countries in considerable numbers, particularly
in primary schools. However, in countries where
there have not been many schools, the need for
more teachers may be very great. Wliile the
proportion of women teachers in these countries
may be encouraging, the entire number of teachers
may actually be very small. We should there-
fore be alert to help girls in these areas prepare
for teaching.

The report points out that conditions for women
in the teaching profession are not always equal
and training opportunities are often limited.
UNESCO proposes a survey which would involve
a direct inquiry to governments. Since this sur-
vey would help in considering measures to redress
inequality and attract women to the teaching pro-
fession, the United States favors further work by
UNESCO along this line.

The United States has had some experience m
training mature women for teaching to meet a
shortage of teachers in the lower grades. Many
more children are entering school at this time
because our birth rate has gone up the last 5 or
6 years. We are finding that married women
whose children are grown and no longer in the
home are now willing to undertake new work or
to go back to teaching which they may have given
up^soon after marriage. Our Women's Bureau
has worked closely with the United States Office
of Education in encouraging study courses to
prepare these women for teaching, in some cases
refreshing earlier skills and in others supplying
a basic understanding of educational principles
all teachers need.

705

STATEMENT OF MARCH 25 ON EQUAL PAY FOR
WOMEN

D.S./D.N. press release 2649

The United States delegation -welcomes this op-
portunity to express its appreciation for the valu-
able reports prepared this year by the Secretary-
General and the Ilo.^ This is the third consecu-
tive year in which the Secretary-General has fur-
nished us with information from nongovern-
mental organizations on the practical methods
which are being used to put the equal-pay princi-
ple into effect.

The Ilo report also provides useful informa-
tion on implementation of equal pay. We wish to
express our appreciation for the inclusion in the
Ilo report of information on equal-pay exper-
ience in the United States. This information was
supplied by the United States Government in re-
sponse to the Ilo questionnaire on application of
the equal remuneration principle, as stated in
convention 100 and recommendation 90. It shows
that, as of the date on which the United States
transmitted its reply, substantial progress has
been made in the United States toward the effec-
tive implementation of equal pay.

Since that date, President Eisenhower, in his
state-of-the-Union message early in 1956, called
for the elimination of remaining wage differen-
tials against women as a matter of simple justice.
The President reiterated this view in both his
economic report and his budget message this year.

Tlie reports before the Commission this year
were prepared in response to the Commission res-
olution which called particular attention to pro-
cedures for implementation of equal pay in col-
lective bargaining agreements. The reports also
discuss other methods of implementation, includ-
ing the enforcement of equal-pay legislation. In
the United States we rely on both collective bar-
gaining and legislation to give practical effect to
the equal-pay principle. We would accordingly
like to comment on equal progress in both fields.

Equal Pay Progress Through Collective Bargaining

Both the Secretary-General and the Ilo reports
show significant progress in implementation of the
equal-pay principle through collective bargain-
ing procedures. The Ilo report states, for ex-
ample, that in France none of the collective bar-
gaining agreements in force at the present time

• U.N. docs. E/CN.O/296 and E/CN.6/300.

establish wage differentials for men and women
in identical occupations. Moreover, the relative
average level of women's wages has been raised
57 percent, the highest percentage gain in women's
wage levels reported by any country.

In the United Kingdom a new agreement in a
major industry provides for the achievement of
equal pay in six successive annual adjustments,
illustrating the usefulness of a step-by-step ap-
proach. In Australia the Australian Congress of
Trade Unions convened a 1-day meeting at-
tended by 65 Federal unions in which it was agreed
to organize a national petition supporting equal
pay. In Belgium the Government has initiated a
constructive program whereby unions are re-
quested to report on the progress made toward the
elimination of discriminatory rates in collective
bargaining agreements. In the Philippines the
Government is encouraging trade union organiza-
tion among women as a means for creating a favor-
able climate on equal pay. In Portugal the
Government has approved regulations establish-
ing women's sections inside a number of national
unions.

Wom^n Union Membership: In the United
States women workers are estimated to constitute
about one-sixth of the membership of unions.
Union organization among women is particularly
strong in the manufacturing industries employing
large numbers of women. Of 199 unions that re-
plied to a Bureau of Labor Statistics questionnaire
on union membership in 1954, the vast majority
reported that they had women members. Six
unions reported having more than 100,000 women
members each. They were:

International Ladles' Garment Workers' Union, with

330,r)00
Araalframated Clothing Workers of America, with

279,100
International Brotherhood of Electrical Workers, with

189,000
Communications Worlvers of America, with 180,000
Retail Clerks International Association, with 132,500
Textile Workers Union of America, with 117,000

Uni^n Eqiuil-Pay Policy: A recent development
of major significance was the formal endorsement
in June 1956 of Federal equal-pay legislation by
the top Executive Committee of the combined
AFL-CIO unions. Prior to the merger of these
two great organizations, both the AFL and the
CIO had repeatedly expressed support for the
equal-pay principle, but the AFL for many years

706

Department of State Bulletin

opposed implementation of the principle through
Federal legislation. The decision of the combined
unions to work for implementation of equal pay
through two major methods — legislation and col-
lective bargaining — has been interpreted as both a
definite gain for the equal-pay movement and a
tacit recognition of the increasing importance of
women as union members.

Unions are also continuing to press for equal-
pay clauses in the negotiation of contracts. The
increasing importance of such clauses is demon-
strated by two United States Labor Department
studies made at an interval of 5 years. The first
study, made by the United States Bureau of Labor
Statistics in 1951, showed that about 24 percent of
the agreements had equal-pay clauses. The second
such study, made by the United States Women's
Bureau in 1956, showed that almost 40 percent of
the agreements had such clauses.

A comparison of the incidence of equal-pay
clauses in contracts for the same industry in the
two periods shows the same results. Thus, in the
electrical machinery industry, equal-pay clauses
in union contracts increased from 42 percent in
1951 to 53 percent in 1956 ; in textiles from 35 per-
cent to 42 percent ; in food industries from 24 per-
cent to 35 percent; in fabricated metals from 22
percent to 29 percent ; and in transportation equip-
ment from 29 percent in 1951 to 40 percent in
1956.

The fact that 40 percent of the agreements con-
tained equal-pay clauses does not necessarily in-
dicate the existence of discriminatory wage rates
in the other 60 percent. Many unions have estab-
lished rates for the job through participating with
management in the development of a sound and
objective rate structure based on job content. The
significance of such clauses is that the equal-pay
principle is expressed in concrete terms.

which had been adopted prior to 1920. Beginning
with 1942, and continuing to the present period,
14 additional States and Alaska have adopted
such laws.

Since the field is so new, many innovations in
approach and language have been tried. Some of
these have proved difficult to enforce. Others
have proved exceptionally effective. In one State,
for example, the law prohibits payment of a lower
wage rate to a woman who replaces a man, thus
discouraging an employer from discharging a male
employee in order to hire a woman at a lower rate.

Amendments to these laws are gradually being
adopted as experience indicates the need for them.
In one State, for example, where the original law
provided for equal pay for the same work, the
law was amended to provide for equal pay for
comparable work. This wording permits minor
variations in the work between a man and woman,
without depriving the woman of equal pay.

We have one further comment on the legislative
aspects of the report, namely, the value of mini-
mum-wage laws as a step toward implementation
of equal pay. Minimum-wage laws in the United
States set the same rates for men and women
workers. No differentials in legal minimum wages
are in effect under the Federal law or such State
laws as apply to both sexes. Nevertheless, our
experience has shown that minimum-wage laws
have only a limited usefulness in removing wage
discrimination against women. As a practical
matter, women workers are sometimes paid exactly
the minimum wage and men are paid at a higher
rate for the same work. The value of minimum-
wage laws consists primarily of raising the stand-
ard of living by eliminating substandard wages;
they do not, however, insure that a woman worker
will receive the same rate as a man for the same
job.

Equal Pay Progress Through Legislation

The Secretary-General's report calls attention
to the importance of adequate wording in equal-
pay legislation and the relationship between such
wording and effective enforcement of such laws.
This has been demonstrated by experience with
State equal-pay laws in the United States.

The State legislatures in the United States have
often been referred to as a laboratory for experi-
mentation in social legislation. Until about 1942
only two equal-pay laws were in effect, both of

Next Steps That Should Be Considered

There has been considerable discussion in the
past few days of the importance of continuity in
the Commission's work. We are in full agreement
with this point of view. It seems to us very impor-
tant to try to build on what has gone before so
that each year we can continue to show significant
results from our work.

The progress we have made to date is reflected
in the series of equal-pay reports prepared by the
Secretary-General and the Ilo. These reports rep-

Apr// 29, 1957

707

resent an achievement, not only for the officials
who i^repared them but for the Commission as
well. They show that we as members of the Com-
mission are coming to grips with the problem of
removing wage discriminations against women.
We no longer address ourselves only to the estab-
lishment of the equal-pay principle; we also con-
sider the practical methods by which the principle
can be effectively applied.

Consideration of these reports at our annual
sessions has greatly increased our knowledge of
effective methods for implementation of equal
pay. However, wider public understanding of
the whole equal-pay issue is essential if we are to
succeed in removing the remaining wage differ-
entials against women.

We think the time has come, therefore, for the
Commission to develop a new promotional pro-
gram. This can best be done through preparation
of a sales pamphlet directed to promoting wide-
spread acceptance and application of the equal-pay
principle. Such a pamphlet was proposed in the
resolution adopted at last year's session,^ but in the
final discussion of program it was relegated to
the low-priority category. We believe the pam-
phlet should be made available without further
delay.

Such a pamphlet should be broad in scope. It
should explain what the equal-pay principle is,
why it is important, and how it can be applied.
One of its purposes should be to clarify prevailing
misconceptions. It should explain, for example,
that equal pay is important not only to the women
workers directly affected but to men workers and
their families. Men's wage levels and the standard
of living of their families are potentially threat-
ened whenever women can be employed at lower
rates for the same work. It should point out the
importance of equal pay in encouraging women
to obtain the necessary training for higher-skilled
jobs, thus enabling them to make their best con-
tribution to the economy as a whole.

We would like to see this pamphlet prepared at
the earliest possible time. To be most useful, it
should draw on the wealth of information avail-
able from the nongovernmental organizations in
the Secretary-General's report this year as well
as in previous reports of the Secretary-General
and discussions at plenary sessions. In addition to

'For a report of the 10th session by Mrs. Ilahn, see
BuiXETiN of June 18, 1956, p. ia33.

its immediate purpose, publication of this type of
sales pamphlet would help to promote women's
status and opportunities in the whole economic
field.

U.S. Extends Invitation to WHO
for Eleventh Assembly

Press release 206 dated April 11

The Department of State announced on April
11 that it has extended the invitation of the U.S.
Government to the World Health Organization to
convene the 11th World Health Assembly in this
countiy in May of 1958. The invitation was ex-
tended pursuant to the authorization contained in
Public Law 832, 84th Congi-ess.

The World Health Organization, with perma-
nent headquarters at Geneva, Switzerland, is an
association of 88 member countries for the purpose
of promoting international cooperation in the field
of health. It is one of the 10 specialized agencies
of the United Nations system.

The World Health Assembly is the supreme
governing body of the World Health Organiza-
tion. The World Health Assembly meets annu-
ally to determine the policies of the World Health
Organization and, in 1958, will celebrate the 10th
anniversary of the founding of that body. The
United States has been an active member of the
World Health Organization since its inception.

U.N. invited To Hold Atomic Energy
Conference at Chicago

U.S. /U.N. press release 2655

FoUoxoing is the text of a note transinitted hy
the Acting Representative of the United States
of America to the Secretary-General of the
United Nations on April 3.

The Acting Representative of the United States
of America to the United Nations presents his
compliments to the Secretary General of the
United Nations and has the honor to refer to the
Resolution on the Peaceful Uses of Atomic
Energy approved by the General Assembly on
December .3, 1955, providing, "that a second in-
ternational conference for the exchange of tech-
nical information regarding the peaceful uses of

708

Department of State Bulletin

atomic energy should be held under the auspices
of the United Nations." '

In this connection the Acting Representative
would like to take tliis opportunity to present
on behalf of the city of Chicago its invitation
to the United Nations to hold the Second Inter-
national Atomic Energy Conference in that city.
Chicago would consider it a great honor to be
permitted to play host to this great international
event.

The Mayor of Chicago advises that all the facil-
ities needed for the successful conduct of the con-
ference will be provided l:iy the city of Chicago.
It is further understood that representatives of
the city of Chicago will make themselves available
to discuss with the Secretary General of the United
Nations the question of the facilities that would
be needed to hold the international conference in
Chicago.

Current U.N. Documents:
A Selected Bibliography

Economic and Social Council

Development of International Travel, Its Present In-
creasing Volume and Future Prospects. Addendum to
the note by the Secretary-General. E/2933/Add.4,
January 25, 1957. 5 pp. mimeo.

Social Commission. Recommendations of the First
United Nations Congress on the Prevention of Crime
and the Treatment of Offenders. E/CN.5/322, January
28, 1957. 5 pp. mimeo.

Commission on Human Rights. Provisional Agenda for
the Thirteenth Session of the Commission on Human
Rights. E/CN.4/733, January 30, 1957. 5 pp. mimeo.

Report of the Committee on the Tenth Anniversary of
the Universal Declaration of Human Rights. E/CN.4/-
735, Februai-y 11, 1957. 9 pp. mimeo.

TREATY INFORMATION

Agricultural Surplus Commodity
Agreement With Iceland

Press release 204 dated April 11

A surplus commodity agreement between the
Government of the United States and the Govern-
ment of Iceland was signed at Washington on
April 11 by Thorsten V. Kalijarvi, Assistant Sec-
retary of State for Economic Affairs, on behalf

of the United States, and Vilhjalmur Thor, Di-
rector of the National Bank of Iceland, on behalf
of Iceland. The agreement provides for financing
the sale of $2,785,000 worth of surplus agricultural
commodities (including certain ocean transporta-
tion costs) for kronur, the Icelandic unit of
currency.

The agreement was negotiated under title I of
the Agricultural Trade Development and Assist-
ance Act of 1954 (Public Law 480). The com-
modity composition of the agreement follows :

Commodity

Approximate quantity

Marliet value
in tliousands
of dollars

Wheat fl^our

6,000 metric tons

8,600 metric tons

7,300 metric tons

270 metric tons

750 metric tons

400 metric tons

200,000 lbs

700

Barley

410

450

R,ice

40

Cottonseed/soybean

oil

300
130

160

Fruit - -

(no quantity speci-
fied)
500 bales. _-

200

Ootton

75

Ocean transportation.

(estimated 50 per-
cent)

320

Sales under this program will be made by pri-
vate United States traders. It is expected that
purchase authorizations will be issued in the near
future.

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency. Done
at New York October 26, 1956.'

Ratifications deposited: Switzerland, April 5, 1957;
Byelorussian Soviet Socialist Republic and Union of
Soviet Socialist Republics, April 8, 1957.

Aviation

International air services transit agreement. Signed at
Chicago December 7, 1944. Entered into force for the
United States February 8, 1945. 59 Stat. 1693.
Acceptance deposited: Finland, April 9, 19.57.

Copyright

Universal copyright convention. Done at Geneva Septem-
ber 6, 1952. Entered into force September 16, 1955.
TIAS 3.324.
Ratification deposited: Austria, April 2, 1957.

Protocol 1 concerning application of the convention to
the works of stateless persons and refugees. Done at
Geneva September 6, 1952. Entered into force Septem-
ber 16, 1955. TIAS 3324.
Ratification deposited: Austria, April 2, 1957.

' Bulletin of Nov. 14, 1955, p. 801.

' Not in force.

April 29, 1957

709

Protocol 2 concerning application of the convention to the
works of certain international organizations. Done at
Geneva September 6, 1952. Entered into force Septem-
ber 16, 19.55. TIAS 3324.
Ratification deposited: Austria, April 2, 1957.

Protocol 3 concerning tlae effective date of instruments of
ratification or acceptance of or accession to the con-
vention. Done at Geneva September 6, 1952. Entered
into force August 19, 1954. TIAS 3324.
Ratifloation deposited: Austria, April 2, 1957.

Narcotic Drugs

Protocol for limiting and regulating the cultivation of the
poppy plant, the production of, international and whole-
sale trade in, and use of opium. Dated at New York
June 23, 1953."
Ratification deposited: Cambodia, March 22, 1957.

Postal Services

Convention of the Postal Union of the Americas and
Spain, final protocol, and regulations of execution.
Signed at Bogotd November 9, 1955. Entered into force
March 1, 1956. TIAS 3653.
Ratification deposited: ArgenHna, February 15, 1957.

Agreement relative to money orders and final protocol of
the Postal Union of the Americas and Spain. Signed
at Bogota November 9, 1955. Entered into force March
1, 1956. TIAS 3655.
Ratification deposited: Argentina, February 15, 1957.

Agreement relative to parcel post, final protocol, and regu-
lations of execution of the Postal Union of the Americas
and Spain. Signed at Bogota November 9, 1955. En-
tered into force March 1, 1956. TIAS 3654.
RatificatiiM deposited: Argentina, February 15, 1957-

Trade and Commerce

Sixth protocol of supplementary concessions to the Gen-
eral Agreement on Tariffs and Trade. Done at Geneva
May 23, 1956. Entered into force June 30, 1956 (TIAS
3591).

Schedule of concessions enters into force: Federal Re-
jjublic of Germany, May 4, 1957.

Whaling

Protocol amending the international whaling convention
of 1946 (TIAS 1S49). Done in Washington Novem-
ber 19, 1956.'
Ratification deposited: Australia, April S, 1957.

BILATERAL
Chile

Agreement for the establishment and operation of raw-
insonde observation stations at Antofagasta, Quintero
and Puerto Montt, Chile. Effected by exchange of notes
at Santiago March 1, 1957.

Entered into force: March 25, 1957 (date of signature
of arrangement embodying the technical details).

Iceland

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 454, 455; 69 Stat. 44, 721).
Signed at Washington April 11, 1957. Entered into
force April 11, 1957.

Italy

Agreement amending the agricultural commodities agree-
ment of October 30, 1956, as amended (TIAS 3702, 3760,

' Not in force.

3762, and 3788). Effected by exchange of notes at
Borne April 2, 1957. Entered into force April 2, 1957.

Netherlands

Air Transport Agreement. Signed at Washington April 3,
1957. Provisionally ojjerative April 3, 1957. Enters
into force definitively on date of receipt by the United
States of notification of constitutional approval by the
Netherlands.

Saudi Arabia

Agreement extending United States rights at the Dhahran
Airfield and providing for related military and economic
matters. Effected by exchange of notes at Washington
April 2, 1957. Entered into force April 2, 1957.

Spain

Agreement amending the agricultural commodities agree-
ment of October 23, 1956, as amended (TIAS 36S5 and
3770). Effected by exchange of notes at Madrid March
26, 1957. Entered into force March 26, 1957.

Check List of Department of State
Press Releases: April 8-14

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

Subject

Dulles : testimony on mutual security
legislation.

Exchange of notes with Saudi Arabia.

Texts of U.S. and Saudi Arabian notes.

Joint communique on U.S.-Iraqi talks.

Miss Willis nominated Ambassador to
Norway (biographic details).

McLeod nominated Ambassador to Ire-
land (biographic details).

O'Connor designated Administrator,
Bureau of Security and Consular Af-
fairs (biographic details).

U.S.-Canadian notes on Mr. Norman.

Rubottom : "Economic Interdepend-
ence in the Americas."

Wilcox : "The United Nations and Re-
sponsibilities for the Future."

Surplus commodity agreement with
Iceland signed.

Educational exchange.

WHO invited to convene 11th World
Health Assembly in U.S.

Joint communique on U.S.-Saudi
Arabian talks.

Illinois student wins NATO scholar-
ship.

Robertson : "Report to the Founder on
Foreign Affairs."

Hill: "The Two Halves of Progi-ess."

Taylor nominated Ambassador to
Switzerland (biographic details).

U.S. policy for assisting Hungarian
refugees.

* Not printed.

t Held for a later issue of the Bulletin.

No.

Date

194

4/8

195

196

tl97

*198

4/8
4/8
4/9
4/9 J

*199

4/9

*200

4/9

201
t202

4/10
4/11

2(Xi

4/11

204

4/11

*205
206

4/11
4/11

t207

4/12

t208

4/12

209

4/12

t210
*211

4/12
4/12

t212

4/13

710

Department of State Bulletin

\ptil 29, 1957

Index

Vol. XXXVI, No. 931

\griculture. Agricultural Surplus Commodity

, Agreement With Iceland

j^merican Principles. Report to the Founder on

Foreign Affairs (Robertson)

ktomic Energy. U.N. Invited To Hold Atomic En-
I ergy Conference at Chicago (text of note) . . .

Canada

U.S.-Canada Joint Commission Holds Executive
Session

U.S. Replies to Canadian Note Regarding E. H. Nor-
man (texts of notes)

Communism. Report to the Founder on Foreign
Affairs (Robertson)

Congress, The

President Decides Against Increase in Tariff on

Straight Pins

President Decides Against Increase in Tariff on

Violins and Violas

Economic Affairs

Agricultural Surplus Commodity Agreement With
Iceland

Munitions Control and the Electronics Industry
(Pomeroy)

President Decides Against Increase in Tariff on
Straight Pins

President Decides Against Increase in Tariff on
Violins and Violas

President Requests Further Data on Imports of
Safety Pins

Proposals for Substantive Changes in Mutual Secu-
rity Legislation (Dulles)

U.S.-Canada Joint Commission Holds Executive
Session

World Trade Week, 1957

Health, Education, and Welfare

United Nations Commission on the Status of Women
(Hahn)

U.S. Extends Invitation to WHO for Eleventh As-
sembly

Iceland. Agricultural Surplus Commodity Agree-
ment With Iceland

International Organizations and Conferences

United Nations Commission on the Status of Women
(Hahn)

U.N. Invited To Hold Atomic Energy Conference
at Chicago (text of note)

U.S. Extends Invitation to WHO for Eleventh As-
sembly

709
682
708

695
694
682

702
703

709

697

702

703

701

675

695
679

704
708
709

704
708
708

Military AGTairs

Munitions Control and the Electronics Industry

(Pomeroy) 697

Proposals for Substantive Changes in Mutual Secu-
rity Legislation (Dulles) 675

U.S. and Saudi Arabia Confirm Agreement on Coop-
eration (texts of notes) 680

Mutual Security

Munitions Control and the Electronics Industry

(Pomeroy) 697

Proposals for Substantive Changes in Mutual Secu-
rity Legislation (Dulles) 675

Philippines. Anniversary of Fall of Bataan (Eisen-
hower, Garcia) 679

Presidential Documents

Anniversary of Fall of Bataan 679

President Decides Against Increase in Tariff on

Straight Pins 702

President Decides Against Increase in Tariff on

Violins and Violas 703

President Requests Further Data on Imports of

Safety Pins 701

World Trade Week, 1957 679

Saudi Arabia. U.S. and Saudi Arabia Confirm
Agreement on Cooperation (texts of notes) . . 680

Treaty Information

Agricultural Surplus Commodity Agreement With
Iceland 709

Current Actions 709

United Nations

Current U.N. Documents 709

The United Nations and Responsibilities for the

Future (Wilcox) 688

United Nations Commission on the Status of Women

(Hahn) 7(H

U.N. Invited To Hold Atomic Energy Conference
at Chicago (text of note) 708

U.S. Extends Invitation to WHO for Eleventh As-
sembly 708

Name Index

Al-Khayyal, Abdullah 681

Dulles, Secretary 675

Eisenhower, President 679, 701, 702, 703

Garcia, Carlos P 680

Hahn, Lorena B 704

Heeney, A. D. P 694

Herter, Christian A 694

Murphy, Robert 680

Pomeroy, Leonard H 697

Robertson, Walter S 682

Wilcox, Francis O 688

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OFFICIAL BUSINESS

A new release in the popular BACKGROUND series . . .

Highlights of

Foreign Policy Developments — 1956

Prepared as a readily accessible source for reference to some of
the major events and pronouncements affecting United States
foreign policy during 1956, this pamphlet encompasses events in
each of the major geographic areas of the world. Sections are
included on developments in the Soviet Union, the satellites, the
Middle East and Africa, Europe, Latin America, and the Far East.

Other topics are disarmament, mutual security, atomic energy,
trade policy, information abroad, East- West exchanges, and edu-
cational exchange and cultural programs.

Tlie material is compiled from previously published official
sources. Illustrations include photographs and maps.

. Copies of this publication may be purchased from the Superin-
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FHE DEPARTMENT OF STATE

Vol. XXXVI, No. 932

May 6, 1957

ICIAL

:KLY RECORD

TED STATES
EIGN POLICY

DYNAMIC PEACE • Address by Secretary Dulles 715

AMBASSADOR RICHARDS' MISSION TO MIDDLE

BIAST • Department Announcement of Interim Report and
Texts of Joint Communiques '24

ECONOMIC INTERDEPENDENCE IN THE

AMERICAS • by Assistant Secretary Rubottom 732

THE TWO HALVES OF PROGRESS • by Assistant

Secretary Hill 736

UNITED STATES-NETHERLANDS AIR TRANSPORT

AGREEMENT • Department Announcement and Text of
Agreement IW

IMMIGRATION POTENTIALS UNDER THE BASIC

IIVIMIGRATION LAW • by Eliot B. Coulter 722

MEETING THE CHALLENGE OF MOVING HUN-
GARIAN REFUGEES • Article by George L. Warren . . 743

For index see inside back cover

THE DEPARTMENT OF STATE

Vol.. XXXVI, No. 932 • Publication 6490
May 6, 1957

For sale by the Superintendent of Documents

U.S. Qovemment Printing Office

Washington 25, D.C.

Price;

62 issues, domestic $7.50, foreign $10.25

Single copy, 20 cents

The printing of this publication has been
approved by the Director of the Bureau of
the Budget (January 19, 1956).

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

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

Publications of the Department,
United Nations documents, and legis-
lative material in the field of inter-
national relations are listed currently.

bynamic Peace

Address by Secretary Dulles ^

I recall pleasurably your annual luncheon of a
year ago. It is a compliment that you have asked
me to come again. Since this is my first speech of
the second Eisenliower term, it may be appropri-
ate to set forth the basic concepts which guide our
foreign policy. It is important that both friend
and foe should know the principles by which we
chart our course.

At the close of World War II, the statesmen of
the world met at San Francisco to plan a better
future for a war-scourged world. They wrote
the United Nations Charter, and in its first article
they laid down three basic and interlocking prin-
ciples. There must be peace ; there must be justice;
and there must be liberty for nations and for
persons.

Peace, justice, and liberty— these same three
concepts underlie the foreign policies of the United
States. Our task is to realize these concepts in a
world of rapid and accelerating change.

Two decades ago I wrote that world peace de-
pended, not on preserving the statm quo, but on
finding ways of peaceful change. Today, this re-
quirement is more than ever imperative. Our
foreign policy accepts change as the law of life.
We seek to assure that change will be benign, and
not destructive, so that it will promote not merely
survival but freedom and well-being.

Deterrents to Aggressive War

A first requirement is that the door be firmly
closed to change by violent aggression.

Of all the tasks of government the most basic is
to protect its citizens against violence. Such pro-

'Made before the annual luncheon of the Associated
Press at New York, N. Y., on Apr. 22 (press release 229
dated Apr. 21) and broadcast to the Nation by radio and
television.

tection can only be effective if provided by a col-
lective effort. So in every civilized community
the members contribute toward the maintenance of
a police force as an arm of law and order.

Only the society of nations has failed to apply
this rudimentary principle of civilized life.

An effort was made through the United Nations
to create an armed force for use by the Security
Council to maintain international order. But the
Soviet Union vetoed that.

However, the member nations still had the pos-
sibility of cooperating against aggression. For
the charter, with foresight, had proclaimed that
all nations had the inlierent right of collective
self-defense.

The free nations have largely exercised that
right. The United States has made collective de-
fense treaties with 42 other nations. And the area
of common defense may now be enlarged pursuant
to the recent Middle East resolution.

This collective security system is subject to as-
saults from without and to infii-mities within.

The Soviet rulers understandably prefer that
the free nations should be weak and divided, as
when the men in the Kremlin stole, one by one, the
independence of a dozen nations. So, at each en-
largement of the area of collective defense, the
Soviet rulers pour out abuse against so-called
"militaristic groupings." And as the free nations
move to strengthen their common defense, the
Soviet rulers emit threats. But we can, I think,
be confident that such Soviet assaults will not dis-
inteOTate the free world. Collective measures are
here to stay.

The greater danger comes from internal hazards.
A collective defense system, in which each mem-
ber nation is completely sovereign, requires a high
degree of voluntary cooperation and agreement.

tAoY 6, 1957

715

Happily, we have tliat. For example, it is
agreed that the primary task is to deter war.
Alodern weapons have such vast destructive power
that there could be no real "victor" were general
war ever to occur.

It is also agreed that the prmcipal deterrent
to aggressive war is mobile retaliatory power.
This retaliatory power must be vast in terms of its
potential. But the extent to which it would be
used would, of course, depend on circumstances.
The essential is that a would-be aggressor should
realize that he cannot make armed aggression a
paying proposition.

It is also agreed that it would be imprudent to
risk everything on one single aspect of military
power. There must be land, sea, and air forces
for local action and for a defense which will give
mobile striking power the chance to do its work.

Thus the general design of common defense is
widely agreed. Of course, its detailed application
presents recurrent difficulties. Also, the sharing of
the burden raises problems.

Modern weapons are extremely expensive. Im-
mense sums must be spent in research and develop-
ment and in making weapons which may become
outmoded almost before they are in production.
The United States is the only free-world country
able to sustain the cost of developing a capacity
for retaliation adequate to deter a potential
aggressor who himself has great and growing
aggressive power. In addition, the United States
supplies military equipment to others and, in
some cases, helps to stabilize the economies of
allies which cannot otherwise play their proper
part in the scheme of common defense.

The President faces no more difficult task than
the crucial one of deciding, in this defense field,
how much to spend, where to spend it, and how to
bring the cost into a budget which pi-ovides for
other needed tasks and does the whole without
monetary inflation or excessive taxation.

There are some who, in a zeal to economize,
would slash that part of our budget which is often
miscalled "foreign aid" — as though it did not aid
us. That would not be economy but extravagance.
If the forces and facilities which others provide
were subtracted from the common defense, the
United States defense budget would have to be
expanded vastly from what it now is. That is
the considered judgment of the President and his
military advisers.

716

The free-world collective-defense arrangements
are not ideal. There is nothing automatic about
them, and they require a continuing conscious ef-
fort by many nations to cooperate and to forgo the
petty selfishness and the extremes of nationalism
which could poison the relationships. But the re-
lationship is predominantly one of good will and
trust. It marks a significant step in the long-
overdue progress of international society from
anarchy to order. To maintain and develop this
progress is a basic principle of our foreign policy.

But we do not believe that the only way to se-
curity is through ever-mounting armaments. "We
consider that controls and reduction of arms are
possible, desirable, and, in the last reckoning,
indispensable. It is not essential that controls
should encompass everything at once. In fact,
progress is likely to come by steps carefully meas-
ured and carefully taken. Thus far it has not been
possible to assure the inspection and other safe-
guards that would make it prudent for us to re-
duce our effective power. But we shall continue
to seek that goal.

Armaments are nothing that we crave. Their
possession is forced on us by the aggressive and
devious designs of international communism. An
arms race is costly, sterile, and dangerous. "We
shall not cease our striving to bring it to a de-
pendable end.

The Blessings of Liberty

Any police system is essentially negative. It is
designed to repress violence and give a sense of
security. But the sense of security is illusory
unless, behind its shield, there is growth and de-
velopment. Military collaboration to sustain
peace will collapse unless we also collaborate to
spread the blessings of liberty.

Trade, from the earliest days, has been one of
the great up-builders of economic well-being.
Therefore, this Government advocates trade pol-
icies which promote the interchange of goods to
mutual advantage.

Also, the United States, as the most productive
and prosperous nation, assists other nations which
are at an early stage of self-development. It is
sobering to recall that about two-thirds of all the
people who resist Communist rule exist in a con-
dition of stagnant poverty. Communism boasts
that it could change all that and points to indus-
trial developments wrought in Russia at a cruel.

Department of State Bulletin

i

but largely concealed, cost in terms of human
slavery and human misery. The question is
whether free but undeveloped countries can end
stagnation for their people without paying such
a dreadful price. Friendly nations expect that
those who have abundantly found tlie blessings of
liberty should help those who still await those
blessings.

Of course, each country must itself make the
principal effort to improve its lot. But others can
provide an impetus and the margin between hope
and despair — and perhaps between success and
failure. They can do this by showing interest and
concern, by giving technical guidance, and by pro-
viding capital for development. Much of this is
done under private auspices, and we wish it could
all be done that way. But sometimes the hazards
are greater than private capital will assume. So
our Government supplies some funds for economic
development purposes.

The sharing of markets and of development
capital is not a giveaway operation. It assures
that the free world, of which we are part, will be
a vigorous, hopefiil community. That corre-
sponds to our interests and to our ideals.

Our mutual security program can and should
make our policies more clear and more stable.
Two weeks ago I outlined proposals to this end
before a special committee of the Senate. ^ With
the help of the Congress, and with the support of
the American people, our trade and economic de-
velopment policies can serve mightily to demon-
strate that the peace of free men is not the doomed
peace of human stagnation but a peace of such
vitality that it will endure.

A Decade of Political Change

Just as our policy concerns itself with economic
development, so, too, our policy concerns itself
with political change.

During the past decade, there have come into
being, within the free world, 19 new nations with
700 million people. In addition, many nations
whose sovereignty was incomplete have had that
sovereignty fully completed. Within this brief
span nearly one-third of the entire human race has
had this exciting, and sometimes intoxicating, ex-
perience of gaining full independence.

The United States believes that all peoples

' Bulletin of Apr. 29, 1957, p. 675.
Moy 6, J 957

should have self-government and independence if
they desire it and show the capacity to sustain it.
We rejoice that there is progress toward this goal.
But liberty requires more than the mere break-
ing of old political ties that have become unwel-
come. Those patriots who won for us our inde-
pendence knew and proclaimed that our free
institutions could be sustained and our independ-
ence made durable only if our Nation accepted the
disciplines which religion and education enjoin.
That is indispensable to assure responsible leader-
ship able to guide a young nation through the
dangers which beset it.

Today, nations born to independence are born
into a world one part of which is ruled by des-
potism and the other part of which stays free by
accepting the concept of interdependence. There
is no safe middle ground.

International communism is on the prowl to
capture those nations whose leaders feel that newly
acquired sovereign rights have to be displayed by
flouting other independent nations. That kind
of sovereignty is suicidal sovereignty.

The United States stands as the faithful and
vigorous champion of the principles of our Dec-
laration of Independence. And we want the new
independence of others to be something better
than a brief twilight preceding the blackout of
Communist despotism.

The Captive Nations

Xowhere is the pressure for change greater than
within the Soviet orbit. For there the most basic
human aspirations are the most repressed.

A year ago Khrushchev boasted before the 20th
Congress of the Soviet Communist Party that com-
munism was on its way to triumph everywhere,
on its merits, as a system of thought and govern-
ment. But in October, how many Communists
could be found in supposedly Communist Hun-
gary ? A few hundreds of secret policemen, hope-
lessly implicated in the crimes of the regime, and
a handful of traitors willing to govern by grace
of Soviet tanks.

Communism in practice has proved to be op-
pressive, reactionary, unimaginative. Its despo-
tism, far from being revolutionary, is as old as
history. Those subject to it, in vast majority, hate
the system and yearn for a free society.

The question of how the United States should
deal with this matter is not easily answered. Our

717

history, however, offers us a guide. The United
States came into being -when much of the world
Was ruled by alien despots. That was a fact we
hoped to change. We wanted our example to
stimulate liberating forces throughout the world
and create a climate in which despotism would
shrink. In fact, we did just that.

I believe that that early conception can usefully
guide us now.

Let us provide an example which demonstrates
the blessings of liberty. Let us spread knowledge
of that around the world. Let us see to it that the
divided or captive nations know that they are not
forgotten; that we shall never make a political
settlement at their expense; and that a heartfelt
welcome and new opportunity await them as they
gain more freedom.

Let us also make apparent to the Soviet rulers
our real purpose. We condemn and oppose their
imperialism. We seek the liberation of the cap-
tive nations. We seek this, however, not in order
to encircle Russia with hostile forces but because
peace is in jeopardy and freedom a word of mock-
ery until the divided nations are reunited and the
captive nations are set free.

We revere and honor those who as martyrs gave
their blood for freedom. But we do not ourselves
incite violent revolt. Eather we encourage an
evolution to freedom.

The Voice of America, our information pro-
grams, and cultural exchanges spread throughout
the world knowledge of what freedom is and does.
Wlien Himgary was invaded and freedom crushed,
we sponsored a United Nations condemnation of
the Soviet Union. And when some steps are made
toward independence, as recently in the case of
Poland, we show a readiness to respond with
friendly acts.

Events of the past year indicate that the pres-
sures of liberty are rising.

Within the Soviet Union there is increasmg de-
mand for greater personal security, for greater
intellectual freedom, and for greater enjoyment of
the fruits of labor.

International communism has become beset with
doctrinal difficulties. And the cruel performance
of Soviet communism in Hungary led many to
desert Communist parties throughout the world.

The satellite countries no longer provide a sub-
missive source of added Soviet strength. Indeed,
Soviet strength, both military and economic, has

now to be expended to repress those who openly
sliow their revulsion against Soviet rule.

And the Soviet Government pays a heavy price
in terms of moral isolation.

Soviet rulers are supposed to be hardlieaded.
For how long, we may ask, will they expend tlieir
resources in combating historic forces for national
unity and freedom which are boimd ultimately to
prevail ?

Principles of tlie U.N. Charter

Let me speak now of the United Nations. Its
charter couples peace with justice and provides
the most significant body of international law yet
known.

The United States has agreed to those principles
and seeks to conform to them ; and we expect other
signatories to do the same. On occasions we invoke
the processes of the United Nations to help to
make effective the principles embodied in the
charter. We are not ashamed, as a powerful
nation, to pay the same decent respect for the
opinions of mankind that we thought proper when,
young and weak, we sought our independence.

That is no abdication of foreign policy. It is
the exercise of foreign policy and its exercise in
the way wliich represents the best hope for
humanity.

Our dedication to the principles of the United
Nations Charter was severely tested by the recent
Middle East crisis. We were then faced with a
distressing and unprecedented conflict of loyalties.
Historic ties would have led us to acquiesce in the
forcible action that was begun. But this would
have involved disloyalty to the United Nations
undertaking that all members renounce the use
of force except in defense against armed attack.
That same pledge is also embodied in all our
treaties of alliance. We decided to be loyal to
that commitment.

This was a hard decision, although to those
directly affected it was not an unexpected decision.
It was not, I suppose, a popular decision. Yet it
was imperative if tlie world was not to go as it
went when the League Covenant was disregarded.

But, as we liave seen, the charter prescribes not
merely jjeaceful settlement but settlement in con-
formity with justice and international law.

We must, and do, seek also to advance that goal.
For example, we arc now striving to bring about
conditions in the Middle East better than those

718

Deparfment of State Bulletin

rovocative and dangerous conditions out of which

he recent violence was born.

I This cannot be done quickly or all at once.

fVTiere emotions run high and a sense of grievance

Is deep, those most directly involved are more

iager to gain partisans for their cause than to

leed impartial counsel.

I Wherever such situations occur, they are always

svorsened by Soviet intrigue. The Kremlin likes

troubled waters in which to fish.

We know, in domestic affairs, that it is hard to
apply just solutions when racial or class passions
run high. The task is equally hard in interna-
tional affairs, and sometimes war seems to offer
a shortcut to the desired end. But that seeming
is an illusion. The only durable solution is one
which comes by patiently, resolutely, and resource-
fully seeking justice and the rule of law. That, at
least, is the faith and the dedication of your
Government.

The Task of Waging Peace

I have tried to describe principles which guide
United States foreign policy. But while guiding
principles are essential, they are not enough.
They must be reinforced by daily action as,
throughout the world, our views are sought and
our influence is made felt.

This is the task sometimes called waging peace.
It is a hard task. It is seldom dramatic. The
many who take part in it may never be known as
heroes. Yet they make efforts, and in some cases
sacrifices, like those required in war to win a war.
By so doing, they spare us the infinitely greater
sacrifice of war itself.

Surely the stakes justify that effort. As I am
briefed on the capacity of modern weapons for
destruction, I recognize the impossibility of grasp-
ing the full, and indeed awful, significance of the
words and figures used. Yet we would be reckless
not to recognize that this calamity is a possibility.
Indeed history suggests that a conflict as basic as
that dividing the world of freedom and the world
of international communism ultimately erupts in

war.

That suggestion we reject. But to reject in
terms of words or of hopes is not enough. We
must also exert ourselves to the full to prevent it.
To this task, the American people must unswerv-
ingly dedicate their hearts and minds through-
out the years ahead.

May 6, J957

That is not too much to expect. Americans are
a people of faith. They have always had a sense
of mission and willingness to sacrifice to achieve
great goals. Surely, our Nation did not reach a
new peak of power and responsibility merely to
partake of the greatest, and perhaps the last, of
all human disasters.

If only we are faithful to our past, we shall not
have to fear our future. The cause of peace, jus-
tice, and liberty need not fail and must not fail.

Letters of Credence

Switzerlarid

The newly appointed Ambassador of Switzer-
land, Henry de Torrente, presented his credentials
to President Eisenhower on April 17. For the
texts of the Ambassador's remarks and the Presi-
dent's reply, see Department of State press release
216.

Visit of Chancellor Adenauer

The Department of State announced on April
19 (press release 223) that Chancellor Konrad
Adenauer of the Federal Kepublic of Germany is
expected to arrive in New York on May 24. He
will come to Washington on May 27, at which
time he will be joined by Foreign Minister Hein-
rich von Brentano. The Chancellor plans to
depart for Germany on May 29.

During his stay in Washington, the Chancellor
is expected to have discussions with the President,
the Secretary of State, and other officials of the
Government.

U.S. Requests Departure
of Soviet Embassy Employee

Press release 21S dated AprU 17

Department Announcement

The Department of State announced on April
17 that it had requested the departure of Gennadi
F. Mashkantsev, an employee of the Soviet Em-
bassy. Sergei R. Striganov, Counselor of the
Soviet Embassy in the United States, was in-
formed that information available to the United

719

States Government indicated that Mashkantsev
had engaged in highly improper activities directed
toward inducing the return to the Soviet Union of
persons who have sought asylum in the United
States.

Text of U.S. Note'

The Department of State informs the Embassy
of the Union of Soviet Socialist Republics that
the Government of the United States has ascer-
tained that Gennadi F. Mashkantsev, an employee
of the Embassy of the Union of Soviet Socialist
Republics, has engaged in higlily improper
activities.

Mashkantsev's continued presence in the United
States is no longer considered acceptable and the
Embassy is requested to arrange for his immediate
departure.

NATO Scholarship Awarded
to American Student

The Department of State announced on April
12 (press release 208) that it has been informed
that Carl Fredric Salans of Chicago Heights, 111.,
is among the winners of the scholarships awarded
annually by the North Atlantic Treaty Or-
ganization.

Mr. Salans, who is now working toward a doc-
torate degree in jurisprudence at the University
of Chicago, will study at Cambridge University
during the 1957-58 academic year. He will con-
tinue his studies in international law with special
emphasis on the conflict of laws where different
legal systems are involved and the status of inter-
national organizations under international law.

The objective of the Nato fellowship and
scholarship program is "to encourage the study
and research of such historical, political, constitu-
tional, legal, social, cultural, linguistic, economic,
scientific, and strategic problems as reveal the
common traditions and historical experience of the
North Atlantic area considered as a Conmiunity,
and give insight into its present needs and future
development."

Candidates for the scholarships were selected by
a committee under the chairmanship of Ambassa-

' Handed to the Soviet Counselor on Apr. 17.
720

dor L. D. Wilgress, Permanent Representative of
Canada to the North Atlantic Council. Others
serving on the committee were James C. Dunn,
former U. S. Ambassador to Italy; Professor
Robert Majolin of the University of Nancy, for-
mer Secretary-General of the Organization for
European Economic Cooperation; Alberto Tar-
chiani, former Italian Ambassador to the United
States; and H. U. Willink, Master of Magdalene
College, Cambridge University, and former vice
chancellor of Cambridge University.

The Nato fellowship and scholarship program,
now in its second year, is carried out under article
2 of the North Atlantic Treaty, which states in
part: "The Parties will contribute toward the
further development of peaceful and friendly in-
ternational relations by strengthening their free
institutions, by bringing about a better under-
standing of the principles upon which these insti-
tutions are founded, and by promoting conditions
of stability and well-being." The program was
furthered by the Report of the Committee of
Three on Nonmilitary Cooperation in Nato, ap-
proved last December, which asked the member
governments to broaden their support of these
activities.^

The announcement of the winners of this year's
awards was made on April 4, the eighth anniver-
sary of the signing of the treaty.

United States Assistance
to Hungarian Refugees

DEPARTMENT ANNOUNCEMENT OF APRIL 13

Press release 212 dated AprU 13

The U.S. Government is continuing to assist the
people of Hungary who fled from Communist op-
pression in their homeland and under this policy
will continue to bring limited numbers of refugees
into the country within the next few months.

The number of refugees to be admitted to the
United States will, of course, be on a diminishing
basis in the future because of the lessening of the
emergency.

Those to bo brought to the United States both
from Austria and countries of second asylum will

' Bulletin of Jan. 7, 1957, p. 18.

Departmenf of State Bulletin

be refugees selected on the basis of hardship cases
such as those involving broken families and spe-
cial-interest cases such as scientists, engineers,
etc., whose skills will enable them to be integrated
readily into the American economy.

The United States has already accepted more
than 31,000 Hungarian refugees, which is nearly
20 percent of all who escaped the Communist op-
pression in their homeland. It has also assisted
in resettling more than 100,000 of tliem in other
countries and intends to continue this assistance.

Austria has indicated it can integrate between
20,000 and 30,000 into its own economy, and the
U. S. Government hopes that, with the acceptance
of additional refugees by the other countries
whicli have been assisting in the emergency, all of
the refugees will have been provided for within
the near future.

The program as a whole reflects the recognition
by the American people of the plight and the
heroism of these oppressed peoples and their de-
termination, along with the other peoples of the
free world, to assist these refugees in finding new
homes where they may live in freedom. The role
of the United States in giving leadership to the
compassionate acceptance and resettlement of
these heroic people has been a gratifying one to
every citizen.

DEPARTMENT ANNOUNCEMENT OF APRIL 16

Press release 21-i dated April 16

Assistance to Hungarian escapees by the people
of the United States and their Government
reaches beyond the welcoming to this country of
more than 31,000 men, women, and children since
the October 1956 revolt against Communist
tyranny.

Commenting on the April 13 announcement that
the United States will continue its welcome to
escapees, Robert S. McCollum, Deputy Adminis-
trator for Refugee Programs and head of the Of-
fice of Refugee and Migration Affairs, on April
16 highlighted this country's dollars-and-cents aid
to benefit escapees. He said :

In addition to receiving in this country more than 31,-
000 Hungarian escapees, this Government expended large
sums for emergency care of escapees in Austria during
the mass exodus from Hungary and has subsequently di-
rectly and indirectly helped to resettle thousands of these

people in countries of the free world other than the United
States.

Involved in this gigantic undertaliing has been the
task of making available to escapees transportation, hous-
ing, jobs, and educational opportunities, and reorienta-
tion guidance and counseling for life in the free world.

Total sums so far allocated by the Government for all
types of assistance to Hungarian escapees have been ap-
proximately $30 million. In addition to this the Ameri-
can people have generously contributed more than $18
million through voluntary welfare agencies and private
charitable organizations.

Some of the assistance given by the United States Gov-
ernment has been in the form of grants to the several
international organizations concerned with the Hungar-
ian emergency, while other types of assistance have been
carried out directly by governmental programs.

These assistance channels were cited :

—The United States Escapee Program, which
expended several millions to finance emergency
care and maintenance and aid in preparing Hun-
garians to resettle in countries other than the
United States.

— The United Nations High Commissioner for
Refugees, to whose office the United States pro-
vided $5 million, much of which financed emer-
gency assistance programs in Austria.

— The Intergovermnental Committee for Euro-
pean Migration (Icem), to which the United
States makes regular contributions and to which
it also made emergency contributions to help in
arrangements for escapees' transportation from
Austria to countries other than the United States.^

— Another program of assistance is the recent
$3 million contribution of the United States to a
plan for moving 10,000 Hungarian escapees now
in Yugoslavia and 5,000 from countries of second
asylum to overseas countries other than the United
States. The project is being carried out by Icem
and the United Nations High Commissioner for
Refugees.

Mr. McCollum added that an objective of the
United States, in its efforts to help relieve the con-
gestion of escapees in Austria during early months
after the revolt, was to help insure the Austrian
economy against the impact of thousands of un-
expected, needy visitors. Commodity reserves
from the United States played a prominent part
in this effort to sustain the economy, at the same
time providing useful foodstuffs.

' For an article on the ICEM, see p. 743.

Ma/ 6, 1957

721

Immigration Potentials Under
the Basic Immigration Law

hy Eliot B. Coulter

Assistant Director, Visa Ofjiice ^

If there were no restrictions of any kind, either
on departures from foreign countries or on entries
into the United States, we would have a great
stream of immigration into tliis comitry. The
greatest sources of such immigration would be
the countries of population pressures in Europe,
the West Indies, and the Far East, where over-
population in relation to available work has led
to unemployment or to partial employment to
spread work opportunities.

Persons who wish to migrate are motivated pri-
marily by a desire to seek a new home in lands
offering an opportunity for full-time work and
a higher standard of living. Others desire to
join relatives or friends who have the same back-
ground. Some respond to an alluring picture of
American life depicted in American movies and
glowing magazine advertisements. Still others
who are dissatisfied with political and other con-
trols seek the American atmosphere of liberty
and respect for the individual. These are rea-
sons for migrating.

There are other persons who postpone or cancel
plans to leave when improved economic condi-
tions at home offer greater rewards and full-time
work. Others prefer the culture and atmosphere
to which they have become accustomed and wliich
they are loathe to leave. This is particularly
true of older persons who are not prepared to face
uncertainties of the future in new surroundings.

The effect of improved economic conditions at
home is illustrated by the quota situation in Ger-
many. When consular offices in Germany were
authorized to register prospective immigrants on
the waiting list, over 200,000 persons registered
within a few days. Within the past year, the
German quota became current, indicating tliat,
when it came to the point of applying for visas,
many persons decided to remain in Germany,
where tlie improved economic conditions pro-
vided opportmiities for full-time work.

It frequently happens, also, that persons regis-

' Address made before the NntioniU Council on Nat-
uralization and Citizenship at New Yorlc, N. Y., on
Mar. 15.

ter on a waiting list in order to keep open a
possibility of migrating if need should arise.
This was particularly true before World War
II, when many persons saw trouble ahead.

The point of these comments is that figures of
registered demand or estimates of potential immi-
grants do not always give a true picture of the
number of persons who will apply for visas when
offered an opportunity to do so. Nevertheless,
with all due allowance for a contradiction in the
estimates, it is reasonable to believe that, if peo-
ples were freely able to migrate at will, there
would be a potential volume of immigrants, pos-
sibly running to several millions.

It is not possible to give any very realistic
estimates. Several years ago it was said that over
12 million persons would emigrate from Italy
alone if they could. Among other countries in
Europe which have furnished large numbers of
immigrants in the past are Czechoslovakia, Ger-
many, Greece, Hungary, Poland, Rumania, Rus-
sia, and Yugoslavia. In the Western Hemisphere,
Jamaica, other West Indian islands, and Mexico
have a considerable volume of potential immi-
grants. In the Far East, China, Japan, and pos-
sibly other countries in the area would be sources
of large numbers of immigrants.

On a practical basis, immigration potentials
must, of course, be related to the provisions of
the Nationality Act, which continues numerical
restrictions first imposed by the Act of May 19,
1921. The present act exempts from quota re-
strictions various classes of persons, including
spouses and unmarried minor children of United
States citizens, and persons born in Canada and
independent countries of the Western Hemisphere.

Coming down to figures, it may be of interest
to note that tlie annual quotas for all countries
total 154,657. During the fiscal year 1956, con-
suls issued 88.5 thousand quota visas. To this fig-
ure must be added 8 thousand numbers charged
to that year's quotas under the provisions of the
Displaced Persons Act of 1948 for mortgaging
quotas for future years up to 50 percent of each
year's quota. There must also be added one thou-
sand quota nmnbei's used during 1956 for adjust-
ments of status of aliens in the United States from
a temporary to a permanent classification. The
total of the quota numbers used or cliarged to the
year 1956 came to 97.5 thousand.

722

Department of Sfafe Bulletin

The underissiie of the quotas for fiscal 1956
amounted to 57 thousand numbers. This was
accoimted for by underissues of 42 thousand foi'
Great Britain, 11 thousand for Ireland, 1,300 for
Sweden, and 2,800 for various other countries with
minimum quotas.

In addition to the quota issuances of 97.5 thou-
sand during fiscal 1956, there were issued 162
thousand nonquota visas. This figure includes
30 thousand for Canada and 65 thousand for Mex-
ico. In addition special nonquota visas issued
under the provisions of the Refugee Relief Act
amounted to 84 thousand.

The grand total of inunigi'ants issued visas
during the year, or previously issued visas charged
to 1956, came to 332.5 thousand. During the post-
war period from July 1, 1946, to June 30, 1956—
10 years — tlie immigration came to 2,337,417.

Speaking of quotas mortgaged up to 50 percent
for future years, it is of interest to note that 20
quotas were so mortgaged, 8 of them to the year
2000 or beyond, including Greece to 2018, Latvia
to 2275, Poland to 2000, and Yugoslavia to 2015.

Now coming to estimates of demands, I have the
following figures as of last November : The num-
ber of qualified applicants ready to be given visas
as numbers become available, 9 thousand. I may
explain here that applicants are not examined too
long ahead of the expected issuance of visas. Un-
qualified demand comprising persons not yet ex-
amined includes: Austria 15 thousand, Germany
20 thousand, Greece 104 thousand, Italy 130 thou-
sand, Jamaica 30 thousand, Netherlands 27 thou-
sand, Poland 80 thousand, Portugal 25 thousand,
Spain 12 thousand, and Yugoslavia 141 thousand.

The law provides that available quota nimibers
shall be used for qualified applicants within the
first three preference classes before they may be
used for other persons. These classes are (1)
skilled workers or technicians; (2) parents of
United States citizens ; (3) spouses and unmarried
minor children of alien permanent residents. It
is only when these three classes do not use all of
the quota that the surplus may be used, one-fourth
for the fourth preference class, comprismg the
brothers and sisters and adult sons and daughters
of United States citizens, and three-fourths for
nonpreference applicants.

Under the quotas for many countries the de-
mand for visas for preference relatives greatly
exceeds the available supply for some years. This
is true for second preference, parents of citizens
under the quotas for Australia, China, Greece,
Hungary, Jamaica, Japan, Philippines, Rumania,
Spain, and Turkey. Third-preference spouses
and children of resident aliens face a long wait
if charged to the quotas of the countries mentioned
and if charged to those for Israel, Italy, Lebanon,
Palestine, and Yugoslavia. Fourth-preference
brothers and sisters and sons and daughters of
citizens chargeable to any of these quotas and
additionally, to the quotas for Austria, countries
in the West Indies, Lithuania, Portugal, and
Syria face long waits of many years.

To sum up, we have a huge reservoir of poten-
tial immigrants to this country mainly from Eu-
rope, the West Indies and Mexico, and the Far
East. Under our immigration laws the flow of
immigrants is restricted by the quotas totaling
154,657, but these were underissued mainly for
Great Britain, Ireland, and Sweden during 1956.
With nonquota visas, the total for that year came
to about one-tliird of a million, including the ref-
ugee-relief issuances, and during the past 10 years
roughly two and a third million immigrants have
come. Finally, luider many quotas there is an
indicated wait of at least several years for rela-
tives of persons in the United States accorded
preferences under the law.

The United States is still a gi-eat immigrant-
receiving nation. With a quarter to a third of a
million a year permitted to come for permanent
residence with a right to work and enjoy all the
benefits of American life and to assmne on an
equal basis the responsibilities inherent in a de-
mocracy, the United States presents a good record
among the nations of the world. The President
has recommended certain changes in our immigra-
tion laws, including an increase in the total of
the quotas and a plan for the utilization of un-
used quota numbers.^ Our nation is made up of
immigrants who currently come to join immi-
gi-ants who preceded them and the descendants
of former immigrants.

- BuLUETiN of Feb. 18, 1957, p. 247.

May 6, 1957

723

Ambassador Richards' Mission to Middle East

Following is a Department announcement re-
garding an interim report on the mission to the
Middle East of Ambassador Ja?nes P. Richards,
together with the texts of joint commv/niques is-
sued after the Amiassador^s visits to Lebanon,
Libya, Turhey, Iran, Pakistan, Afghanistan, Iraq,
and Saudi Arabia, and two press statements on the
Baghdad Pact.

DEPARTMENT ANNOUNCEMENT

Press release 226 dated April 19

On April 18, 1957, the Department of State for-
warded to the appropriate committees of Congress
an interim rej)ort on the mission to the Middle
East of Ambassador James P. Ricliards in imple-
mentation of Public Law 85-7, March 9, 1957.^
The report covered the visits to the countries of
Lebanon, Libya, Tui-key, Iran, Pakistan, Afghani-
stan, Iraq, and Saudi Arabia.

The report briefly summarized the procedures
followed by Ambassador Eichards in each of the
countries he has visited. The mission has been
making clear that the basic purpose of the joint
resolution on the Middle East is to help the states
of the Middle East maintain their national inde-
pendence against the encroachments of commu-
nism. In each case, on the basis of the explana-
tions oifered, the country concerned decided
whether it wished to participate in the program.
On the basis of such participation. Ambassador
Richards, in consultation with other United States
agencies in the country concerned, determined
what kinds of assistance can help in implementing
the desired cooperation. Upon leaving each

' H. J. Res. 117, as nmended ; for text, see Bulletin of
Mar. 25, 1957, p. 481. For background on Ambassador
Richards' nii.ssion, see ibid., Mar. 25, 1957, p. 480, and Apr.
1, li)r.7, p. 52G.

country, a joint communique has been issued cov-
ering the general area of agreement and setting
forth a statement of common purpose.

The results of the mission to date are impressive.
As the public joint communiques demonstrate, the
governments covered by the interim report have
declared their desire to associate themselves with
the President's program for the Middle East. It
is particularly gratifying that so many of the
countries have made known their opposition to
international communism.

In the case of four Baghdad Pact coimtries —
Turkey, Iran, Pakistan, and Iraq — Ambassador
Richards made two special commitments. One of
these, conveyed initially to the Prime Minister of
Turkey and later to the others, was a declaration
that the United States, if formally invited to do so,
is prepared to join the Military Committee of the
Baghdad Pact. The other was the assurance
given to each of the four countries that the United
States is prepared to assist in the development of
certain regional programs under consideration in
the Economic Committee of the Baghdad Pact.
At a Baghdad press conference Ambassador Rich-
ards announced that a sum of $12,570,000 might be
made available for this purpose through arrange-
ments to cover the shares of the four countries in
the overall projects.

The communique issued jointly with the Leb-
anese Government on March 16 pointed out that
the two countries "consider that international
communism is incompatible with national inde-
pendence and constitutes a cause of permanent
trouble for world peace and security." In the
Libyan communique issued on March 20 the two
Governments agreed "that the aggi-essive inten-
tions of international communism offer the great-
est present threat to national independence and
the peace and security of the world community."
The Turkish communique issued on March 22
stated: "The reactionary creed of international

724

Department of State Bulletin

communism, it was noted, is set by its very nature
in fundamental opposition to the aspirations of
the Middle Eastern peoples for political independ-
ence and spiritual, cultural, and social freedom."
The Iranian communique issued on March 27
noted that : "Should international communism
succeed in its imperialistic aims, the security, free-
dom, integrity and independence of all peoples
throughout the free world would face extinction."
In the joint communique issued after the visit to
Pakistan on March 31, Ambassador Richards,
among other things, "re-emphasized that the pur-
pose of the American Doctrine is to enable inde-
pendent nations of the Middle East region to
defend themselves against this direct and indirect
threat by international communism." In the
communique issued in Kabul after Ambassador
Eichards' visit to Afghanistan on April 2, the
two Governments agreed that "they are deter-
mined to defend the political independence and
territorial integrity of their respective nations
and the right of each to choose its own form of
government and to develop its own social and cul-
tural life." The joint communique issued at
Baghdad, Iraq, on April 8 stressed the "coopera-
tion between the United States Government and
countries of the Middle East to protect their na-
tional independence and integrity against the
threat of international communism." In the com-
munique issued in Saudi Arabia on April 11 the
two Governments reaffirmed that they would "con-
tinue to oppose Communist activities, other forms
of imperialism and any other dangers that
threaten peace and stability in the area."

In addition to other matters of common inter-
est, the communiques have generally stressed the
identity of interests between the United States and
the countries of the area in maintaining and
strengthening their independence.

Ambassador Eichards' mission is now in As-
mara, Eritrea. He will fly to Khartoum, capital
of the Sudan, April 20 and will remain there until
April 22, when he plans to return for a brief
rest at Asmara. The remainder of his itinerary
will be announced in the next few days.

The interim report was submitted to the fol-
lowing committees: Senate Foreign Eelations,
Senate Armed Services, Senate Appropriations,
House Foreign Affairs, House Armed Services,
House Appropriations.

COMMUNIQUES AND PRESS STATEMENTS

Lebanon Joint Communique

Beirut, Lebanon

March 16, 1957

On his visit to Ivcbanon from 14 to 16 March
1957 as Special Assistant to President Eisenhower,
Ambassador James P. Eichards discussed with the
Government of Lebanon President Eisenhower's
proposals for the Middle East and the application
of these proposals to Lebanon. This exchange
of views has shown that the Governments of
Lebanon and the United States share the follow-
ing purposes :

1. In their relations with each other and with
other nations, they are guided by the purposes and
principles of the Charter of the United Nations
and by respect for the sovereign equality, rights
and legitimate interests of all nations. They are
interested in the establishment of a cooperative
relationship between themselves based on trust
and confidence and on complete respect for each
other's independence and sovereignty and without
any interference in each other's internal affairs.

2. They are determined to defend the political
independence and territorial integrity of their
respective nations and the right of each to choose
its own form of government and to develop in
freedom its own social and cultural life.

3. They oppose any form of intervention or
interference in the internal affairs of one state
by another.

4. They consider that international communism
is incompatible with national independence and
constitutes a cause of permanent trouble for world
peace and security.

5. They are dedicated to the social and economic
progress of their peoples and to this end welcome
opportunities to enter into mutually beneficial and
cultural relationships, on the basis of complete
resi^ect for each other's sovereignty and inde-
pendence.

6. They are of the opinion that both nations
should work, through the United Nations and by
all other peaceful means, toward just solutions of
the various problems which create tension within
the area. The Government of Lebanon considers
that the proposals of the President of the United
States are helpful in furthering the purposes set

May 6, 1957

725

forth above and has so informed Ambassador
Richards, who has welcomed on behalf of the
President of the United States this understand-
ing of the broad identity of interest which exists
between the two nations. The Government of
Lebanon and the si^ecial Mission of Ambassador
Eichards have examined various activities that
might be undertaken in accordance with the pro-
posals of the President of the United States. They
have decided in principle that projects in the
fields of workers' housing, rural electrification,
village water supply, irrigation, flood control,
highway construction and airport development
would best contribute to the needs of Lebanon.
These will be in addition to other United States
aid projects already in effect or currently planned.
Ambassador Eichards has agreed further in prin-
ciple that the United States Government shall
provide the Government of Lebanon certain equip-
ment needed to strengthen the Lebanese armed
forces. This is in addition to a recent grant of
military equipment for the same purpose.

The two Governments will immediately initiate
such legal and technical steps as may be required
to give effect to these projects. The two states
intend further to develop cooperation between
themselves to serve their common interests.

Libya Joint Communique

Tripoli, Libya
March 20, 1957
On his visit to Libya from March 17 to 20, the
Special Assistant to President Eisenhower, Am-
bassador James P. Eichards, has conferred with
the Prime Minister and the Government of Libya.
They have reached agreement on the meaning and
purpose of President Eisenhower's proposals for
the Middle East. This exchange of views revealed
an identity of interests of the two nations and
agreement to work together for the successful
application of the Middle East plan, which pro-
vides: (1) if requested, defense against any
armed aggression by forces of international
communism which may be directed at any nation
of the Middle East; (2) assistance in devel-
oping the security forces of countries of the
Middle East which request help for the pur-
pose of protecting their freedom and inde-
pendence; (3) aid in strengthening the eco-

nomic systems of Middle East countries as the best
defense against the threat of subversion. The
Government of Libya and the special Mission of
Ambassador Eichards agreed that the aggressive
intentions of international communism offer the
greatest present threat to national independence
and the peace and security of the world commu-
nity. They also confirmed that it is the general
cry of both countries to oppose any aggression
from any source. The Government of Libya re-
ceived with approval Ambassador Eichards' as-
surance that the United States Middle East policy
does not seek to establish spheres of influence or
special positions of power in the Middle East but
is devoted to strengthening the nations of the area
so that they may be masters of their own destinies.
In support of the principles enunciated above, it j
was agreed that additional economic aid to Libya
is needed and will be forthcoming from the United
States.

Turltey Joint Communique

Ankara, Turkey

March 22, 1957
His Excellency Prime Minister Adnan Men-
deres, and other Ministers of the Government
of Turkey and Ambassador James P. Eichards,
Special Assistant to the President of the United
States, have discussed the proposals of the Presi-
dent of the United States for strengthening the
national independence and insuring the territorial
integrity of states in the general area of the Mid-
dle East against international communism.
Prime Minister Menderes has reiterated his Gov-
ernment's endorsement of these proposals.

During these discussions, Ambassador Eichards
recalled President Eisenhower's assertion that the
firm and fixed purpose of the United States was
to build peace with justice in a world where moral
law prevails. The American Doctrine is an ex-
pression of this philosophy. It is based on recog-
nition of the community of interest of the Ameri-
can people and the peoples of the Middle Eastern
area in the security of the Middle East against
international communism. The reactionary creed
of international communism, it was noted, is set by
its very nature in fundamental opposition to the
aspirations of the Middle Eastern peoples for po-
litical independence and spiritual, cultural, and
social freedom. Should international commu-

726

Department of State Bulletin

nism succeed in perverting or thwarting these as-
pirations in the Middle East, the security of all
free peoples everywhere would be threatened.

The purpose of the American Doctrine, as stated
by Ambassador Richards, is to assist independent
nations in the general area of the Middle East to
strengthen their ability to deal with the possibility
of direct or indirect aggression by international
communism. The two Governments have agreed
to continue their cooperation in seeking to attain
the above objectives.

The Government of Turkey learned with ap-
proval of United States efforts to assist in attain-
ing these objectives by the following :

1. Establishing a deterrent to armed attack on
any nation in the area by a country under the con-
trol of international communism. The President
of the United States and the American Govern-
ment and people have made clear their determina-
tion to use, if necessary, the armed forces of the
United States in the event of such attack, but only
upon the request of the state or states attacked.

2. Providing military assistance to strengthen
internal security and legitimate self-defense
against communist aggression.

3. Providing economic aid to promote the de-
velopment of states in the area and also to prevent
communism capitalizing on economic distress.

The Government of Turkey and the United
States in accordance with their long-established
policies continue to oppose any form of interven-
tion or interference in the internal affairs of one
state by another. They consider international
communism a threat to national independence and
to world peace and security and are determined to
cooperate together in conformity with the Charter
of the United Nations, in protective measures
against this threat.

The Government of Turkey and the special Mis-
sion of Ambassador Richards have agreed on ways
in which the development of economic and mili-
tary aid to Turkey would advance the cooperative
efforts of the two Governments to attain the aims
and purposes of the Middle East proposals.

Ambassador Richards further states that the
United States was prepared to offer financial as-
sistance toward several jomt projects of a regional
nature which have been considered by the Eco-
nomic Committee of the Baghdad Pact.

Iran Joint Communique

Press release 176 dated March 28

Tehran, Iran
March £7, 1957

His Excellency Prime Minister Hussein Ala
and members of his Cabinet, and Ambassador
James P. Richards, Special Representative of
President Dwight D. Eisenhower, have met in
common cause and interest to discuss the purposes
and aims of the American Doctrine, proposed by
President Eisenhower and decisively adopted by
the American Congress.

During these discussions Prime Minister Ala
reaffirmed his Government's endorsement of the
purposes of the new American policy to strengthen
the national independence and defend the terri-
torial integrity of the countries in the general area
of the Middle East against international commu-
nism and its imperialistic aims.

Ambassador Richards outlined the philosophy
of President Eisenhower's policy, emphasizing
that the foremost hope and purpose of the United
States was, in company with its likeminded
friends, to build peace with justice. He pointed
out that the peoples of the Middle Eastern area
and the people of America have a common inter-
est in their joint efforts to preserve liberty and
freedom through the maintenance of security
against encroachments by international commu-
nism in the Middle East. International com-
munism is incompatible with the aspirations of
the people of the Middle East for political inde-
pendence, national integrity, religious, cultural
and social freedom. It is likewise incompatible
with the freedom heritage of the American people.
Should international communism succeed in its
imperialistic aims, the security, freedom, integrity
and independence of all peoples throughout the
free world would face extinction.

The two Governments intend to continue their
close cooperation to attain their mutual objectives.

Ambassador Richards explained that the Presi-
dent of the United States and the American Gov-
ernment and people have declared it their policy
to use, if necessary and appropriate and if re-
quested, the armed forces of the United States in
support of any country in the area of the Middle
East which is attacked by a country under the
control of international communism.

May 6, 7957

727

He emphasized that the United States, in ac-
cordance with its historical traditions, has no ter-
ritorial designs in the area, nor is it desirous of
creating a so-called sphere of influence. Its desires
are solely to assist the nations in the Middle East-
ern area to achieve security and economic well-
being. It is not seeking to fill a power vacuum.
If one exists, the United States believes it should
be filled by the increasing strength of the Middle
Eastern nations themselves.

The Governments of Iran and the United States,
in accordance with their long established policies,
continue to oppose any form of intervention or
interference in the internal affairs of one state by
another. They are determined, in conformity with
the United Nations Charter, to cooperate together
in protective measures against the threat of
aggression from any source.

Substantial American aid in the form of eco-
nomic, technical and military assistance is continu-
ing. Because of past experience and Iran's own
increasing capabilities, it is anticipated that
American aid will accelerate progress in Iran's
economic development program and toward the
Government's goal of a better standard of living,
with full national security, for its people.

The representatives of the Government of Iran
and the special Mission of Ambassador Eichards
have agreed on procedures in which the develop-
ment of economic and military aid to Iran can
serve best to achieve the aims and purposes of the
Middle East proposals.

Ambassador Richards stated that the United
States was prepared to offer assistance toward
several joint regional projects which have been or
may be approved by the Economic Committee of
the Baghdad Pact. These would be in addition to
the large economic aid programs already in prog-
ress in Iran. As further evidence of America's
deep interest and belief in the defensive objectives
of the countries of the Baghdad Pact, the United
States has expressed a willingness to join the Mili-
tary Committee of the Pact, if invited to do so.

Ambassador Richards agreed that the United
States would provide increased financing for an
already planned large military construction pro-
gram to meet the needs of the imperial Iranian
armed forces and would also provide cei'tain addi-
tional items of military equipment to those forces.

Pakistan Joint Communique

Karachi, Pakistan

March 31, 1957

At the invitation of the Government of Pakistan,
Ambassador James P. Richards, who as Special
Representative of the President of the United
States is touring the countries of the Middle East
region, has visited Karachi to explain the Ameri-
can Doctrine as propounded by President Eisen-
hower on January 5, 1957.

The President, assisted by the Prime Minister,
the Foreign Minister and the Finance Minister,
has met Ambassador Richards, who has explained
the purposes and aims of the American Doctrine.
It was emphasized by Ambassador Richards that
United States Middle East policy does not wish
to establish any sphere of influence in the Middle
East. It does not seek to fill any power vacuum in
the region nor does it aim at securing military
bases. United States policy is solely designed to
strengthen the nations of the area so that they
can maintain their indei^endence and territorial
integrity.

It was noted that communist imperialism,
tlu'ough overt aggression or internal subversion,
constitutes a direct threat to the national aspira-
tions of the peoples of the Middle East, which if
allowed to develop would jeopardize the independ-
ence and freedom of peoples everywhere. Ambas-
sador Richards re-emphasized that the purpose
of the American Doctrine is to enable independent
nations of the Middle East region to defend them-
selves against this direct and indirect threat by
international communism.

In reiterating their endorsement of the Amer-
ican Doctrine, the Government of Pakistan have
expressed their willingness to cooperate with the
United States Government in securing the peace
of the Middle East, to which Pakistan is already
committed as a member of the Baghdad Pact.
They were pleased to learn of the United States
decision to join the Military Committee of the
Baghdad Pact, if invited to do so. They have
also welcomed American efforts to assist in the
objective of securing the peace of the area not
only by providing military and economic assist-
ance to the countries of the Middle East region,
but also by the employment of United States
forces, whenever deemed necessary, and if re-
quested by any state or states of the Middle East

728

Department of State Bulletin

region in the event of armed attack by forces of
international communism.

The determination of both Governments to
oppose aggression from any quarter was re-
affirmed.

The Government of Pakistan have suggested to
Ambassador Richards certain economic and mili-
tary projects as worthy of aid imder the American
Doctrine, and he has agreed to provide assistance
in both iields. In particular, the United States
will lend funds to assist in soon starting construc-
tion of fertilizer factories. The Government of
Pakistan are glad to learn that the United States
are also prepared to finance several joint projects
of a regional nature which are already under the
consideration of the Economic Committee of the
Baghdad Pact.

Afghanistan Joint Communique

Kabul, Afghanistan

ApTil 2, J957

Press release 103 dated April 5

At the invitation of the Royal Afghan Govern-
ment, Ambassador James P. Richards, Special
Representative of President Eisenhower, has paid
a three-day visit to Afghanistan. Ambassador
Richards and companions arrived in Kabul in ac-
cordance with their program of visit to the Middle
East on the eleventh of Hanial, 1376, correspond-
ing to the thirty-first of March, 1957 and lield
meetings with Sardar Mohammed Saoud, the
Prime Minister of Afghanistan.

The meetings and conversations took place in an
atmosphere of cordiality in accord with the close
and friendly relations existing between Afghani-
stan and the United States of America.

In the course of these meetings Ambassador
Richards explained the purpose of the visit to
Afghanistan and other Middle Eastern countries.
He outlined the purposes and principles of the
Middle Eastern policy recently announced by the
President of the United States. He explained the
aims of the United States Government's assistance
and cooperation in the development of Middle
East countries for the preservation of their full
independence and sovereignty and for the pre-
vention of aggression from any source, and the
maintenance of peace and security m the area.
Ambassador Richards emphasized that the United
States, in accordance with her historical tradi-

May 6, 1957

424353—57 3

tions, does not in any way have any territorial de-
signs in the area. He stated that the United States
aim was to see that the countries of the Middle
East achieve economic development and well-
being for the maintenance of peace and security.

The Prime Minister explained Afghanistan's
traditional independent policy of neutrality and
the intention of the Government and the people
of Afghanistan to maintain this policy for the
purpose of preserving good relations with all
friendly states and all the peoples and nations of
the world, and to develop the economic, social and
cultural aspects of the country under the aegis of
world peace and security. The Prime Minister
reiterated the unswerving determination of the
Government and the people of Afghanistan to
maintain the national independence which
emanates from the immortal will and the histori-
cal strtiggles of the Afghan nation.

The Prime Minister of Afghanistan welcomed
the determination of the United States Govern-
ment to assist and to cooperate with the countries
of the Middle East for the purpose of strengthen-
ing their economies and raising the standard of
living of the peoples of the area for the preserva-
tion of their national independence. The Prime
Minister explained and reiterated Afghanistan's
natural interest in the amelioration of conditions
and the maintenance of peace and security in the
Middle East.

The Prime Minister and Ambassador Richards
concluded that the Governments of Afghanistan
and the United States agree that :

1. In their relations with one another and with
other nations, they are guided by the purposes and
principles of the Charter of the United Nations
and by respect for the sovereign equality of all
nations.

2. They are determined to defend the political
independence and territorial integrity of their re-
spective nations and the right of each to choose its
own form of government and to develop its own
social and cultural life.

3. They are dedicated to the social and economic
progress of their peoples and to this end welcome
opportunities to enter into mutually beneficial
economic and cultural relationships which will al-
ways reflect their respect for the sovereign equality
of all nations and opposition to foreign interven-
tion or interference in internal affairs.

729

4. They hiirbour no aggressive intentions
against any nation and will always seek to live in
peace with their neighbors.

5. They recognize that promotion of the eco-
nomic, social and cultural aspects of the countries
of the Middle East and the elimination of the
mutual differences between these countries is one
of the most eliective means of maintaining peace
and security in the area.

6. The existing economic and cultural coopera-
tion between Afghanistan and the United States
shall be continued without any jiolitical conditions
or restrictions as heretofore. It was agreed that
the economic and cultural relations between the
two countries have proved to be mutually ad-
vantageous. Ambassador Eichards discussed cer-
tain additional selected economic projects benefi-
cial to Afghanistan, in which the United States is
prepared to be of assistance.

Iraq Joint Communique

B.\GnDAD, Iraq

April 8, 1957

Press release 107 dated April il

Ambassador Eichards, Special Eepresentative
of the President of the United States, who came
to IJaghdad at the invitation of the Government
of Iraq, has met with the Prime Minister of Iraq
and members of tlie Iraqi Government. They have
had fruitful talks during the past two days.

They discussed the proposals enunciated by the
President of the United States for cooperation be-
tween the United States Government and coun-
tries of the Middle East to protect their national
independence and integrity against the threat of
international communism.

The discussions have confirmed the identity of
views between the United States and the Govern-
ment of Iraq and the nature of this threat and the
necessity to cooperate to defend themselves against
it. They also confirmed the agreement of the two
Governments on their opposition to aggression or
subversion from any source.

Ambassador Eichards noted with satisfaction
the success of the efforts the Iraqi Government is
making to develop the resources of the country to
improve the welfare of the Iraqi people, which
also contributes to their ability to preserve their
independence and freedom.

The Prime Minister and Ambassador Eichards
reaffirmed the dedication of their Governments to

the principles of the United Nations for the main-
tenance of international peace and security.

The Prime Minister welcomed the decision of
the United States Government to participate in
the Military Committee of the Baghdad Pact if
invited to do so.

Various activities for the furtherance of the
l)roposals of the President of the United States
were discussed.

Ambassador Eichnrds explained that the United
States was seeking no bases and did not desire to
establish any sphere of influence in this area, wish-
ing only to help the nations of the Middle East
to maintain their own independence. He agreed
tliat certain additional military assistance should
be provided Iraq. He also agreed that the United
States Government would furnish assistance in
support of the internal security forces of Iraq
and, within the framework of the Baghdad Pact,
to develop Iraq's telecommunications network.
Some assistance will also be given toward the de-
velopment of Iraq's domestic railroad require-
ments.

Press Statements on Bagiidad Pact

Baghdad, Ir.\q

April 8, 1957

Statement by Ambusmdor Richards

Having completed my visits to the Baghdail
Pact capitals of Turkey, Iran, Pakistan and Iraq
and having liad the opportunity today to consult
with Mr. Awni Khalidy, Secretary General of the
Baghdad Pact, I am happy to make the following
announcement :

The Ignited States Government is prepared in
principle to initiate the necessary procedural and
legal steps to make available through the Secre-
tary General of the Baghdad Pact up to $1 million
to cover the cost of certain railroad, highway and
telecommunications surveys as recommended by
the economic experts of the Baghdad Pact Eco-
nomic Conunittee.

Further the United States is prepared in prin-
ciple to initiate the necessary procedural and legal
steps to furnish $ 11, .->< '0,000 - of grant assistance to
the four member nations of the Hagluliul Tart
cited above to cover the cost of certain consultant
and engineering studies and equipment in support
of the foregoing projects.

"The iiri'cisc fii;iirt' is .'i;il..j70,00().

730

Department of Stale Bulletin

I am sure the Baghdad Pact Governments will
approve as early as possible the recommendations
of the economic experts of the Baghdad Pact in
order that implementation of the projects may be
initiated with minimum delay.

Implementation of the projects will follow the
conclusion of bilateral agreements between the
United States and each member Government con-
cerned.

Statement by Secrcta/ry General Khalidy

Mr. Khalidy discussed with Ambassador Rich-
ards the progress of the Baghdad Pact and its
plans for contributing to the integrated economic
development of the countries of the Pact region.
Ambassador Eichards expressed to the Secretary
General the strong support of the United States
for the Baghdad Pact. Ke informed the Secre-
tary General that in support of the economic pro-
gram of the Baghdad Pact the United States was
prepared to make available an amount up to $12,-
500,000 for the advancement of certain Baghdad
Pact regional projects in the telecommunications,
railroad and highway development fields recom-
mended for priority consideration by the economic
experts of the Baghdad Pact Economic Conmiittee
at their recent meeting in Baghdad. Of this
amount up to $1 million Mould be devoted to eco-
nomic surveys to be undertaken in the immediate
future through arrangements to be made under
the auspices of the Secretary General.

The Secretary General on behalf of the Bagh-
dad Pact thanked Ambassador Eichards for his
expressions of United States suppoi-t for the
Baghdad Pact and in particular for his generous
otier of United States financial assistance for
Baghdad Pact economic projects. Ambassador
Eichards and the Secretary General agreed that
the work should proceed with the utmost speed.

Saudi Arabia Joint Communique

EiTADH, Saudi Arabia

Apnl 11, 1957

Press release 207 dated April 12

His Majesty's Government welcomed His Excel-
lency, Ambassador James P. Eichards, Special
Eepresentative of the President of the United
States to Eiyadh on Tuesday, ninth of Eamadan,
1376, corresponding to the ninth of April, 1957.

His Excellency was received in audience by His
Majesty King Saud of Saudi Arabia. He ex-
May 6, 1957

plained to His Majesty the purposes of the Presi-
dent's Middle East proposals, which are designed
to strengthen the countries of the area and to
enable them to maintain their independence and
national security. He restated his Government's
policy of opposing aggression from any source.
He listened to PTis Majesty's views and ideas in
this connection, and promised to convey these
views to His Excellency, the President of the
United States.

His Excellency also met with His Eoyal High-
ness the Prime Minister and with members of the
Saudi Government. As the result of these dis-
cussions, both parties found themselves agreed on
reaffirming the policy which has been set forth in
the joint communique issued in "Washington on
the eighth of February, 1957, by His Majesty the
King of Saudi Arabia and His Excellency the
President of the United States.^ They will con-
tinue to oppose Communist activities, other forms
of imperialism and any other dangers that
threaten peace and stability in the area.

Agricultural Commodity Sales
Agreement With Colombia

Press releiise 217 dated April 17

The United States and Colombia on April 16
signed an agreement authorizing the sale to Co-
lombia, through private U.S. traders, of wheat,
wheat products, cotton, and edible oils. The ex-
port market value of this transaction, including
part of the ocean transport, is $20.4 million.
These sales are being made under authority and
provisions of the Agricultui'al Trade Develop-
ment and Assistance Act of 1954, as amended, in
conjunction with agreed dollar purchases. The
agreement was signed at Bogota by the Foreign
Minister of Colombia, Jose Manuel Eivas Sac-
coni, and the U.S. Ambassador, Philip Bonsai.

This is the third agricultural sales agreement
concluded with Colombia.^ It provides that pay-
ment under the sales program shall be made partly
in U.S. dollars and partly in Colombian cuiTency.
A substantial part of the Colombian pesos accru-

' For test, see Bulletin of Feb. 25, 1957, p. 308.

' For Department announcements of previous agree-
ments, see Bulletin of Jan. 2, 1956, p. 27, and July 11,
19.j5, p. 85.

731

ing under this agreement will be earmarked for
loans designed to contribute to Colombia's eco-
nomic development and will be repayable in
dollars or pesos under the terms of a supplemental

loan agreement which is to be concluded at a
later date. The balance of the Colombian pesos
accruing will be reserved for the use of the United
States in Colombia.

Economic Interdependence in tlie Americas

iy Roy R. Riibottom, Jr.

Acting Assistant ^ecretwnj for Inter- American Affairs '

Thank you for inviting me to speak to you
today concerning our relations with our sister
American Republics. It is particularly fitting
to do so now while the entire hemisphere is ob-
serving Pan American Week in celebration of
the 67th anniversary of our inter-American sys-
tem, embodied in the Organization of American
States.

The objectives of Rotary are so much in line
with the purposes of the Organization of Ameri-
can States as set forth definitively in the charter
of Bogota, which established its present form,
that it is interesting to examine them together.
Rotaiy's stated objectives are to encourage and
foster the ideal of service as a basis of worthy
enterprise — in particular, to promote the devel-
opment of acquaintance as an opportunity to serv-
ice; to uphold the ethical standards and dignity
of business and professional life; to make tlie
ideal of service a personal ideal for every Ro-
tarian; and to further the advancement of inter-
national understanding, good will, and peace
through a world fellowship of business and pro-
fessional men united in the ideal of service.

Every one of these objectives upheld by Rotary
is in harmony with the great inter- American pur-
pose of solidarity as outlined in the charter of
the Organization of American States. This pur-
pose is for our American Republics to achieve an
order of peace and justice; to promote their soli-
darity; to strengthen their cooperation one witli

1 Address made before the Rotary Club of New York
at New York, N. Y., on Apr. \\ (press release 202).

another; and to defend their sovereignty, terri-
torial integrity, and independence.

May we not say that just as Rotary has made
"service" its watchword, "cooperation" is a key-
word of the Organization of American States;
and, for eacli, international understanding and
good will are both ends and means.

I would like, in my talk today, to sketch for
you, in as much detail as the time will allow, the
total picture of our economic relations with Latin
America. It is a picture which, I am sure, you
will find encouraging, particularly when viewed
in relation to the worldwide economic scene.

First of all, let us realize that in Latin America
we are dealing with the peoples of 20 other Re-
publics who cherish the same ideals and principles
which guide us in the conduct of our national
affairs, whose historic development contains many
striking similarities to our own, who look to the
future with the same determination to build for
their children a more secure and fruitful life. We
are, in a true sense, a family of states, seeking
common goals along a common path.

Sources of Dollar Income

To understand better our economic relations
with Latin America, and their importance to us,
let me make a few comparisons. First, our trade
with the 20 other American Republics is greater
tlian that which we have with any other area of
the world. Thirty percent of our imports come
from Latin America, and we sell there one-quarter
of our total exports. This two-way trade be-

732

Oeparfmenf of Sfafe Bullelin

tween the United States and Latin America is now
at a level of $7.5 billion per annum.

In the field of private investment more than
one-third of United States direct private invest-
ment abroad is located in Latin America, that is,
over $7 billion. This investment is increasing at
the rate of over $500 million per year.

Another part of the picture is tourism. An
estimated $330 million was spent by American
tourists in Latin America in 1955. The $260
million income which Mexico received from our
tourists in 1955 was that country's largest single
source of dollars.

The above items — trade, private investment, and
tourism — are the principal nongovernment sources
of dollar income received by Latin America from
the United States. Let us now look briefly at the
government sources. In the last year loans of the
Export-Import Bank to Latin America were $409
million. During the past 4 years the total was
$1.1 billion. It is the Export-Import Bank's
policy that no economically sound developmental
project in Latin America shall fail for lack of
access to capital from other sources to cover its
dollar needs. The only limits on such sound loans
which the bank is willing to make in Latin
America are the limit of the bank's capacity and
the borrower's ability to repay in dollars.

Another similar source of funds is the Inter-
national Bank for Eeconstruction and Develop-
ment, which, in the fiscal year 1956, made loans
of $75.1 million in Latin America. The Inter-
national Finance Corporation, an affiliate of the
Ibrd, promises soon to be a valuable source of
additional capital for private-enterprise ventures
in Latin America.

A new source of capital, in this case local cur-
rencies rather than dollars, has been created
under surplus agricultural commodity agreements
which our Government has entered into with
seven of the Latin American countries. Under
the sales agreements for these surplus commodities
the bulk of the local currency proceeds is reserved
for loans to the local government and to private
industry for use in economic development. In the
past 2 years sales for the equivalent in local cur-
rencies of nearly $300 million have been nego-
tiated in Latin America.

A further, and important, component of our
economic relations with Latin Ajnerica is in the
field of teclmical cooperation. During the past 4
years our contribution toward these cooperative

programs has been at an annual level of about $28
million.

The final important source of income to Latin
xVmerica from a U.S. Government source is non-
military grant aid. Consistent with their proud
tradition as proud peoples, the Latin American
Republics prefer not to receive grant aid from us.
As sources of dollars, they prefer trade, invest-
ment, sound loans, and technical cooperation.
However, in the past several years temporary
emergency conditions in three countries — Guate-
mala, Bolivia, and Haiti — have been such that
grant aid became essential. In each country the
objective was the prevention of hunger and the
reestablishment of a self-reliant economy.

In the case of Guatemala, the emergency re-
sulted from the bankrupt treasury and stagnant
economy which the present government was faced
with on ousting the Communist-dominated Arbenz
government in 1954. With our cooperation the
Guatemalan Government has since made great
strides toward putting the country's economy on
a stable and progressive basis. In Bolivia the
problem has been to assist in terminating its de-
pendence on a single export, tin, and the more
effective development of the country's varied re-
sources for the benefit of the entire population.
Haiti's problems stemmed from the devastation
wrought by Hurricane Hazel, particularly with
respect to the country's principal export crop,
coffee. In the past 3 years our grant aid to Latin
America has been at the level of about $40 million
each year.

Having enumerated the principal sources of
dollar income which Latin America receives from
the United States, let me try to evaluate it in terms
of our economic relations with the area.

It is in our national self-interest that Latin
America have a continuing and adequate source
of dollar income, not only to purchase our exports
but to contribute to tlie development of sturdy
self-reliant economies in each of the Republics.
With the most rapidly increasing population of
any comparable area it is essential that the econo-
mies of these nations develop rapidly, but ration-
ally, if they are to meet the aspirations of future
generations for a better standard of living. The
present estimated population is increasing an-
nually at the rate of approximately 2.5 percent.
The other 20 American Republics now have an
estimated population of 170 million. Looking into
the future, based on its present rate of growth,

May 6. 1957

733

we can anticipate a Latin American population of
500 million by the j'ear 2000, or about double that
of the United States and Canada together at that
time and at the present rate of increase.

Primary Importance of Trade

Of these sources of dollars, trade is undoubtedly
of primary importance io Latin America. It re-
news itself year after year and is self-perpetuating.
Trade is most easily ex{)anded through the efforts
and ingenuity of individuals, provided govern-
ments do not intervene unduly to create obstacles.
Efforts to increase trade, or to eliminate barriers
to trade, can most effectively contribute to the
further improvement of our economic relations.
This $7.5 billion trade so beneticial to both the
United States and I.iatin America can be increased
substantially over the years, as it has been increas-
ing in the past, to our nuitual advantage.

There is much that can be done by private citi-
zens and by governments both in Latin America
and the United States to increase this trade.

Some of Latin America's exports enjoy a mo-
nopoly or near monopoly on the United States
market. How nmch could the markets for these
products be expanded if a really intensive long-
term camjjaign were imdertaken by the traders
in these products^ For instance, does this coun-
try really satisfy its "coll'ee hunger"?

Many Latin American exports, however, nuist
be sold in the United States in competition with
our domestic production of the same product.
In this situation there are conflicting interests
which must be reconciled in the national interest.
On the one hand, we must recognize that, if eco-
nomic and political stability is to exist in Latin
America, we must protect its existing access to
the United States market. At the same time,
domestic producers, understandably, press for
protection against competitive foreign products.
Your Government seeks carefully to resolve these
situations in teiTns of our national interest, which
includes encouragement to the healthy economic
growth of our neighbors. In doing so, it must be
borne in mind that to restrict access to our mar-
kets to Latin Amei-ican exporters means that we
are restricting in turn the Latin American mar-
kets of our own exporters of agricultural and
manufactured products. Our Latin American
customers must earn their dollars in our markets
i f they arc to continue buying from us.

llic expansion of this inter-American trade
is important to each of us. The 25 percent of
our total exports we sell to Latin America means
a great many jobs to our labor force. It con-
tributes greatly to the strength of the hemisphere
and to our own security by making its basic con-
tributions to the development of stable free-en-
terprise economies in Latin America.

Private Investment

Second in importance to trade as a source of
dollars for Latin America is private investment.
Since profits must be earned before there is any
remittance, private equity investment is prefer-
able from the point of view of the capital-import-
ing coinitry to loans on which interest must be
paid — whether or not the loan is profitably em-
ployed. Our private investment already has an
enviable record in contributing to the economic
development of Latin America. A recent survey
of the Department of Commerce has undertaken
to assay the role of United States investment in
the Latin American economy.- This study shows,
in a way that Mas heretofore not generally known,
the mutually beneficial results of this investment.
Some of tlie facts revealed are particularly
noteworthy :

— United States companies in Latin America
in 1955 paid salaries of a billion dollars to 609.000
employees, only 9,000 of whom were brought from
the LTnited States. This is an average wage of
$1,600 per year.

— In that year these companies paid over $1
billion in taxes.

— These United States tuiancial oijerations pro-
duced in Latin America in 1955 goods and serv-
ices valued at $4.8 billion. More than $2 billion
of these goods and services were sold abroad for
dollars, while $2.5 billion were sold in local mar-
kets— most of them I'eplacimr goods which other-
wise might have to be imported.

— To support these operations in 1955 these
companies used $650 million to import raw mate-
rials and capital equipment and remitted $555
million in earnings, at the same time making a net

"For an ai'tiole based on this survey, see "The Role of
t\S. Investments in the I.ntin American Economy," by
.Sauniel Pi/.i'r and Frederick Cutler, Siirrrji of Current
Biixmofs, .Tanuary 19.')", for sale by the Superintendent
of Documents, Government Printing OfiBce, Washington
25, D. C, 30 cents.

734

Department of State Bulletin

new investment of $100 million in Latin America.

— The net contribution of United States com-
panies to the Latin American economies during
1955 is conse(iuently estimated at $i5.5 billion.

— The net gain to Lathi America from the oi)e ra-
tions of United States direct investments was $3.5
billion in 1955.

Tourism

The thinl imiiortant source of dollars I have
mentioned is that of tourism. Like trade and jiri-
vate investment, it is generated, fundamentally, by
])rivate initiative rather than government. And,
like those two sources, it is capable of steady and
lucrative expansion, not based on government
appropriation of funds. Latin America has a
vast potential source of income in its multiple
tourist attractions which has so far been only
partially exploited.

The completion of the Inter- American Highway
to the Panama Canal and the improvement of
travel and hotel facilities will undoubtedly at-
tract in the future a greater portion of the millions
of Americans who annually travel abroad. At the
present time, 36.2 percent of our 1,284,000,000
tourist dollai'S go to Europe each year, while only
around 25 percent, or $380,000,000, go to Latin
America. Competition in this field is keen, and
the interested countries must "sell" their attrac-
tions.

The fields in which private enterprise and
initiative can expand and develop the inter-
American economic opportunities are indeed
challenging to the people of this hemisphere, and
the importance of these economic relations to the
people of our country and of the other American
Republics would be difficult to overstate. "While
the governments of the hemisphere can make cer-
tain contributions toward this development, or can
retard it, the course which our countries will
follow in this mutually beneficial undertaking
will be determined, essentially, by the efforts of
our people.

AVith resjiect to the role of the governments of
the hemisphere in the improvement of the living
standards of our peoples, I would like to call your
attention to efforts which are now being made to
strengthen the Organization of American States
in the economic, financial, social, and technical
fields.

When the Presidents of the .Vmerican Repub-
lics met in Panama during July of last year,^
there was enthusiastic response to President
Eisenhowers proposal that each of the 21 Presi-
dents name a personal re])resentative to meet to-
gether and make practical suggestions which the
Organization of American States could appro-
priately adopt to strengthen its cooperative efforts
in those fields which atTect the welfare of the in-
dividual. President Eisenhower named his
brother. Dr. Milton Eisenhower, to be the United
States representative. These representatives,
who have come to be called the Inter-American
Committee of Presidential Representatives, met
formally last September and again in January^
of this year. They plan a final meeting later this
month to put in final form the reports which they
will make to the respective Presidents.

"Wliile it would te premature to speculate on the
detailed form this report will take, I can assure
you that the members of this special connnittee
representing all the American Republics, their
staffs, and the secretariats of the Oas have devoted
a great deal of earnest effort toward developing
realistic proposals to strengthen and expand the
cooperative activities of the Organization of
American States in such fields as public health,
the peaceful uses of nuclear energy in various
fields, educational exchange, agricultural research,
and public education. These governmental activi-
ties will make an essential contribution toward
providing the individual with the "tools" of good
health, literacy, and technical know-how so essen-
tial in the development of the hemisphere's natural
resources for the benefit of its peoples.

I have tried to summarize for you the activities
of the peoples and the govermnents of the 21
Republics which make for the economic interde-
pendence of the Americas. This interdependence
which has contributed so much of mutual benefits
to our peoples already holds great promise for the
future. This promise has achieved increasing
reality through our joint efforts to develop in a
dynamic fashion the economies of all of the coun-
tries which make up our great inter-American
community.

' Bulletin of Aug. (5, 1956, ]). 221.

' Ihxd., Oct. 1. lO.'ti. p. Till, and Mar. 25, lfl.")7. p. 47!t.

Aloy 6, J 957

735

The Two Halves of Progress

by Robert C. Hill

Assistant Secretary for Congressional Relations ^

For nearly a century and a half the United
States has been forging hemispheric ties of
greater and greater solemnity and intimacy. In
my lifetime we have become aware that, when we
speak of the "American way," we intuitively or
subconsciously mean the "All-American way."
This is the spirit infusing the whole history and
tradition of growth in our hemisphere.

For many years — if my youth may speak in
terms of many years — I have been excited by the
potential of cooperation that presents itself to
the northern and southern halves of the New
World. Some years ago I was the employee of
an American company which has pioneered, and
I hope with a feeling of satisfaction on the part
of its Latin American associates, in the develop-
ment of economic relations between the United
States and Latin American nations. Later I was
associated with the Senate Committee on Bank-
ing and Currency at the time when Senator Homer
Capehart first talked with me about a Senate
mission to Latin America. Still later I served
on two different occasions as United States Am-
bassador to Central American countries — Costa
Rica and El Salvador — whose economies are close-
ly and profitably related to the United States.

In the future we hope there will be opportu-
nities to foster even closer relationships between
countries whose relationships have been instruc-
tively intertwined for many decades. In an
earlier generation there were times, of course,
when great difficulties had to be surmounted ; there
were times in which the tests of accommodation

' Aililress made at the Pan Amorican Day banquet hon-
(iriiiK the Council of the Organization of American States
at Los Anpeles, Calif., on Apr. 14 (press release 210 dated
Apr. 12).

and of mutual respect and mutual helpfulness
had to be tried in the fiercest fires.

Happily, these precarious times are past. In
the United States today, as in what were the
most ancient of the Spanish viceroyalties, the
long testing and evolution of relationships has
finally reached a point where mutual understand-
ing and cooperation were never greater.

In this respect almost anything that can be said
about one American country can be said with
equal truth about any nation in the Americas.
That truism has a vital political significance for
the world. It is significant because, in a world
of so many unknowns, mankind builds on what
it knows. The fact that the United States knows
and respects Latin America and Latin America
knows and respects the United States is there-
fore a portent for growth that cannot be
exaggerated.

Pan-American Unity

We in the United States are not ignorant of
our debt to Latin America. In all the talk about
underdeveloped nation s — whatever economic
meaning that expression may have — we are not
unaware that Latin America has long been in the
A'anguard of civilization in its concept of the
dignity of man and his relationship to the
universe.

We do not forget that the rights of man em-
bodied in our Declaration of Independence had
strong spiritual suppoi-t from the noble Padre
Las Casas, administrator of the Council of the
Indies, pleading the cause of the enslaved Indian
at the court of Spain. In the United States Capi-
tol building itself, one is reminded of that; as you
come down one of the important stairways, there

736

DepartmenI of State Bulletin

in front of you in a famous mural is the portrait
of Las Casas, the first man in the Western Hemi-
sphere to enunciate the inviolable rights of
mankind.

We do not forget that the first idea of pan-
American unity came from Latin America — from
Bolivar— nor that the first concept of a United
Nations was born in the Bolivarian concept, nor
that the first pan- American conference was called
in Panama — again by Bolivar.

But, while it is well to recognize these riches
in our heritage, it is still the better part of wisdom
to look ahead rather than backward. In the past
the dignity of the human spirit was a subject of
intense preoccupation in Latin America because
progress in other directions was grievously in-
hibited. Progress was slow because nature had
locked up the resources of Latin America in dif-
ficult geographical and chemical formulas. Until
the commg of the airplane, until the age of abun-
dance in power and machinery, until the miracu-
lous discoveries of modern science and medicine
enormous wealth was hidden away in the remoter
jungles and mountain fastnesses.

Today we are engaged in a great scientific effort
to unlock the storehouses of the world's hidden
riches. We want to accelerate the volume of pro-
duction, to provide easy access to the remotest
wilderness, to uplift the standards of living in
regions where natural resources have been too
long hidden from use. In response to this chal-
lenge the generosity and imagination of the
people of the United States are exploring the
problems of underdeveloped nations all through
the world.

For myself I am confident that in this effort the
people of the Government of the United States are
not going to lose sight of the historical priorities.
And believe me, there are priorities, even though
we recognize the interdependence of freedom-
loving men everywhere.

The priorities are partly spiritual, residing in
our common faith in the dignity of the individual ;
they are partly historic, residing in the constant
evolution of such institutions as the Organization
of American States ; and they are partly economic,
residing in tlie fact that we occupy an economic
plateau which is measurably higher than those in
many parts of Africa and Asia and the Communist
orbit.

We in the Western Hemisphere are the world's
greatest bastion against the totalitarian invasion.

We are capable of defending civilization in a spirit
of unity because as a whole we are further along
in the process of development. I sincerely mean
that; I am not indulging merely in rhetorical
overstatement. A region such as Latin America,
with 150 years of experience in self-government,
in cultural diversity, and in economic develop-
ment, is far more likely a candidate for progres-
sive growth than a similar area where there is no
long tradition of political self-discipline, no long
kinship with 20th-century scientific advancement,
no present source of skilled labor, and in some cases
fewer of the spiritual values that create the in-
centive for progress.

Copper and iron and petroleum are chemically
the same everywhere. Food is much the same no
matter what the longitude and latitude in which it
gi-ows. But for the United States, products can
have "plus" values. So far as American policy is
concerned, iron ore in nearby Latin American
countries belonging to people who share our eco-
nomic and cultural values is, in my opinion, a
higher grade of iron ore than in some other parts
of the world.

U.S. Capital Investment in Latin America

The essence and reality of the Western Hemi-
sphere alliance can easily be demonstrated statis-
tically. The United States relishes in many ways
its close ties with Latin America. To prove that,
you need look no further than the figures on
foreign investment. Private individuals and cor-
porations in the United States have put more than
$7 billion worth of their capital to work in Latin
America.

Moreover, a recent economic analysis has clearly
refuted one of the favorite arguments of dema-
gogs— the argument that United States capital
bleeds and exploits Latin America. Here are the
facts: Every year United States companies in
Latin America produce nearly $5 billion worth of
goods and services. They provide 30 percent of
all the goods exported from Latin America. Every
year 600,000 Latin American workers receive
nearly a billion dollars in wages and salaries from
United States companies. Every year the Gov-
ernments of Latin America receive over a billion
dollars in taxes from these same companies. And
in contrast to this enormous increment of new
wealth for Latin America, remittances of profits
are barely one-tenth as much as total production —

May 6, J 957

737

some $600 million a year — and the flow of new
investment and reinvestment in productive enter-
prise is actually greater than the remittance of
profits.

As we look to the future, however, it is not
enough merely to say that United States capital
has contributed to the Latin American pattern of
growth. New economic pressures are emerging
in many parts of the world — in Asia, in the Middle
East, and most notably and most recently in
Africa. All the countries where economic devel-
opment has been slow are now clamoring for a
swift acceleration in the tempo of expansion. In
many of these areas there are rich opportunities
for capital investment, for socially desirable serv-
ices, and for legitimate profits. Latin America
must now compete with all these burgeoning
economies for money and facilities and know-how.

During the period when Conmiunist intrigues
and nationalist pride were trying to frighten in-
ternational capital into hiding, it was politically
fashionable for leaders in some countries to debate
whether foreign capital ought to be made welcome.
Today the issue is no longer debatable. Every
fact of modem life insists that international
capital must be obtained if the pace of develop-
ment in Latin America is to be maintained.

A Job for Private Enterprise

The only remaining issue is : Wlio will provide
the capital and on what terms ?

Already part of the answer is visible. Already
we know who is not going to provide the capital.
By tacit agreement neither the United States tax-
payer nor the Latin American taxpayer is going
to pay for creating the means of production. It is
clear that Latin America is fundamentally in tune
with the United States concept of production : that
the manufacture of goods for private consump-
tion should not be financed with governmental
funds but that instead this is a job primarily for
private enterprise.

Such an understanding is a long step forward.
In certain other parts of the world, where the
rate of capital formation is slow, economists and
statesmen have been saying that private initiative
cannot answer urgent social needs. They have
been saying there must be "mixed economies,"
made up in part from public and in part from
private funds. This type of argument is being
propounded even in cases where the government

738

has no resources of its own and where govern
ment revenues are so slender as to provide no real
foundation for public credit.

It is significant and heartwarming that Latin
America as a whole has steered clear of this.
From the Rio Grande to Tierra del Fuego, busi-
nessmen and government leaders alike have put
their faith primarily in private enterprise. At
times, and often without mincing words, they have
criticized United States capital and American
corporations; but it is certainly notable that they
have not closed their doors to investors, they have
not invented discriminatory and confiscatory
taxes, they have not pretended they can "go it
alone" and provide food and clothing for their
people with mimeographed speeches on patriotism.
In short, there already exist in this hemisphere
the bricks and mortar with which to build a
harmonious, productive economic structure.

Our assets are clearly visible. We have a com-
mon respect for the individual and his place in
the economic system whether he be owner, man-
ager, or worker. We have interrelated economies
with some areas producing raw materials, others
producing food and fibers, others developing com-
plementary processing facilities. We have a
multibillion-dollar system of production already
in operation. We have trade valued in billions
of dollars flowing steadily in multilateral pat-
terns throughout the hemisphere.

Not to be overlooked by any means is the exist-
ence of our regional Organization of American
States, in which the LTnited States has been proud
to play a part. In the community of nations
there has been no secret of the fact that the United
States takes a special neighborly interest in its
sister Republics of the Americas, and that the
policy of the United States will always be to lend
the fullest measure of help in promoting hemi-
spheric welfare. You can be sure that today, with
disi'uption of historic trade patterns in the Middle
East and with the emergence of highly competi-
tive economies elsewhere in the underdeveloped
areas, the United States is not the less sensible of
its historic friendships in this hemisphere and is
not at all inclined to minimize the importance of
Latin American development.

Speeding New Patterns of Growth

It is not enough, however, to pay tribute to what
has been accomplished and to restate old loyalties.

Department of Stale Bulletin

What is more important at this stage is to devise
what means we can to speed the new patterns of
growth. It is time to be specific and to consider
concrete solutions.

Enough surveys have been conducted and
enough analyses have been made to show that
development in Latin America should logically
follow two distinct but parallel lines. On the
one hand, there is a need for certain government-
to-government financing, using public funds. The
need here is for major public improvements — for
such non-revenue-producing utilities as roads,
harbors, bridges, tunnels, dams, schools, and new
sources of mechanical power. The problem is to
prime the economic pump — to create power and
the means of mobility before human skills and
productive energies can be effectively marshaled.

At the same time there is a need for new and
vastly gi'eater sources of credit through private
channels if individual businessmen are going to
be able to provide the merchandise that people
want for their comfort and happiness. The pri-
vate banking system is being challenged to mod-
ernize itself. Recently, one noted United States
industrialist pointed out that the largest commer-
cial bank in the United States today can make
no loan of more than $50 million. He urged the
creation of a banking system capable of meeting
credit requirements of considerably gi'eater mag-
nitude. He proposed the creation of at least a
dozen of what might by present standards be
called "super banks," each one with capital and
surplus exceeding a billion dollars and each ca-
pable of lending as much as $100 million to a single
borrower.

So far there has been no specific response to
this bold and imaginative proposal. It can
hardly be doubted, however, that the financial
community will eventually begin to think in terms
of that magnitude. All of us can see the need for
creating new production facilities; all agree that
construction on the necessaiy scale cannot be paid
for in cash. This means that big industry has
got to invent new methods of buying time, of pay-
ing on the installment plan.

Wlien the credit structure is ultimately mod-
ernized, we can be fairly sure of two things : first,
that United States bankers will be in the vanguard
of the movement because they want to help sell
United States goods and services, and second, that

Latin America will be ready to cooperate because
the people and governments of this hemisphere
agree that private capital ought to finance private
development.

By way of summary, then, let us say that some
increase in governmental loans can be expected in
the realm of public works, either through the
Export-Import Bank, or the "World Bank, or other
facilities. This trend is logical because it is no
longer generally feasible for private bond buyers
to finance governments. But, parallel to the use
of public funds for such improvements, we can
expect to see new facilities for channeling private
funds into the hands of private businessmen and
industrialists.

A Task in Partnership

All this now becomes a task in partnership. We
are fully aware that every country has its own
traditions and the forms of government that par-
ticularly fit the genius of its people. We do not
expect that the concept of democracy be the same
in evei-y country from the Arctic Circle to Cape
Horn any more than we expect that every house
on an American street be the same. But a common
devotion to the principles of freedom and the
dignity of man was shared by Las Casas and
Thomas Jefferson, and it is that common bond that
we in this generation want to bring to its logical
maturity, economic as well as political.

In our common struggle for a good life — and
as time goes on for a better life, we may all hope —
the international Communist movement is engaged
in an unceasing effort to undermine progress and
thwart our orderly development. But by this time
we know enough about the anatomy of commu-
nism, however, to be able to keep its hostility in
perspective. We know that communism is not the
only danger. We know that poverty and disease
and the endless, grueling frustration of the human
spirit can be just as dangerous to our peace and
prosperity.

Wliat holds us together in the quest for a new
measure of well-being is that we know not only
what we are against but also what we are in favor
of. So long as we know where we are going — and
we do! — then we can and will move toward the
future with the same high courage and purpose as
the pioneers who built our Western civilization.

May 6, 1957

739

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Calendar of Meetings '

Adjourned During April 1957

U.N. Trusteeship Council: Standing Committee on Petitions . . New York Feb. 18-Apr. 30*

ICAO Aerodromes, Air Routes and Ground Aids Division: 6th Montreal Mar. 12-Apr. 15

Session.

U.N. ECOSOC Commission on Status of Women: 11th Session . . New York Mar. 18-Apr. 5

ICEM Executive Committee: 7th Session Geneva Mar. 28-Apr. 6

FAO Cocoa Study Group: Statistical Subcommittee Rome Apr 1-3

UNESCO Intergovernmental Advisory Committee on the Major Paris Apr. 1-10

Project on Mutual Appreciation of Eastern and Western Cultural

Values: 1st Meeting.

U.N. ECE /Id Hoc Working Party on Standardization of Conditions Geneva Apr. 1-12

of Sale for Cereals.

ILO Advisory Committee on Salaried Employees and Professional Geneva Apr. 1-13

Workers: 4th Session.

UPU Executive and Liaison Committee Lausanne Apr. 1-13

U.N. ECOSOC Human Rights Commission: 13th Session .... Geneva Apr. 1-26

FAO European Commission for Control of Foot-and-Mouth Dis- Rome Apr. 2-3

ease: 4th Session.

FAO Special Committee on Observer Status Rome Apr. 2-3

FAO/ILO Conference on Rural Life in Europe Bad Godesberg Apr. 2-12

FAO Cocoa Study Group: Executive Committee Rome Apr. 4-5

FAO Committee on Relations With International Organizations . . Rome Apr. 5-6

ICEM Subcommittee on Coordination of Transport Geneva Apr. 5 (1 day)

ICEM Council: 6th Session Geneva Apr. 8-12

UNICEF Executive Board and Program Committee New York Apr. 8-15

U.N. Scientific Committee on the Effects of Atomic Radiation: Geneva Apr. 8-18

3d Meeting.

U.N. ECAFB: 5th Regional Conference of Asian Statisticians . . Bangkok Apr. 8-20

ILO Tripartite Preparatory Technical Maritime Conference: Geneva Apr. 11-19

Working Party on Wages, Hours of Work, and Manning on

Board Ship.

United States World Trade Fair New York Apr. 14-27

IAEA Preparatory Commission: 15th Meeting New York Apr. 16 (1 dayj

Inter-Parliamentary Union Council Nice Apr. 23-28

GATT Intersessional Committee Geneva Apr. 24-27*

In Session as of April 30, 1957

U.N. Trusteeship Council: 19th Session New York Mar. 14-

U.N. Disarmament Commission: Subcommittee on Disarmament. London Mar. 18-

Economic and Social Council: 23d Session New York Apr. 16-

Inter-American Commission of Wom^n: Technical Experts and M6xico, D.F Apr. 20-

Administrative Heads of Women's Labor Bureaus.

FAO International Poplar Commission: 9th Session Paris Apr. 22-

International Poplar Congress P.aris Apr. 22-

2d European Civil Aviation Conference Madrid Apr. 24-

ICAO Legal Committee: Subcommittee on Hire, Charter, and Madrid Apr. 24-

Interchange of Aircraft.

9th ILO International Conference of Labor Statisticians Geneva Apr. 24-

lAEA Committer of the Whole: 2d Session New York Apr. 25-

U.N. Economic Commission for Europe: 12th Session Geneva Apr. 20-

U.N. ECOSOC Narcotic Drugs Commission: 12th Session . . . New York Apr. 20-

' Prepared in the Office of International Conferences, Apr. 16, 1957. Asterisks indicate tentative dates and places.
Following is a list of abbreviations: U.N., United Nations; ICAO, International Civil Aviation Organization; ECOSOC,
Economic and Social Council; ICEM, Intergovernmental Committee for European Migration; F.\0, Food an<l Agriculture
Organization; UNESCO, United Nations Educational, Scientific and Cultural Organization; ECE, Economic Commission
for Europe; ILO, International Labor Organization; UPU, Universal Postal Ihiion; UNICEF, United Nations Children's
Fund; ECAFE, Economic Commission for Asia and the Far Enst; IAEA, International Atomic Energy Agency; G.\TT,
General Agreement on Tariffs and Trade; ITU, International Telecommunication Union; NATO. North Atlantic Treaty
Organization; WHO, World Health Organization; UNREF, United Nations Refugee Fund; PAIGH, Pan American
Institute of Geography and History; PASO, Pan American Sanitary Organization; WMO, World Meteorological Organiza-
tion; PIANC, Permanent International Association of Navigation Congresses; IBE, International Bureau of Education. '

740 DeparlmenI of State Bulletin

Calendar of Meetings — Continued

n Session as of April 30, 1957 — Continued

nter-American Presidential Representatives: 3d Meeting . . . Washington Apr. 29-

TU Administrative Council: 12th Session Geneva Apr. 29-

louth P.icific Commission: Conference on the Review of the Com- Canberra Apr. 30-

mission.

Scheduled May 1-July 31, 1957

international Commission on Irrigation and Drainage: 3d Congress.

Oth International Cannes Film Festival

■^ATO Council: Ministerial Meeting

ii'AO Technical Meeting on Soil Fertility for Latin America ....

J.N. Advisory Committee on Peaceful Uses of Atomic Energy: 6th
Session.

J.N. ECE Conference of European Statisticians: Seminar on In-
dustrial Statistics.

J.N. ECOSOC Social Commission: 11th Session

[LO Metal Trades Committee: 6th Session

?A0 European Forestrv Commission : 9th Session

;VHO: 10th World Health Assembly

international Hydrographic Bureau: 7th Congress

inter- American Travel Congresses: Permanent Executive Com-
mittee.

?A0 Indo-Pacific Fisheries Council: 7th Session

J.N. ECAFE Highway Subcommittee: Seminar on Highway
Safety.

[J. N. Economic Commission for Latin America: 7th Session . . . .

international Conference for Uses of Radar in Marine Navigation .

international Cotton Advisory Committee: 16th Plenary Meeting.

international Commission for Northwest Atlantic Fisheries: 7th
Meeting.

J.N. Trusteeship Council: 20th Session

i^aribbean Commission: 24th Meeting

iilustoms Cooperation Council: 10th Session

ii'AO Study Group on Grains: 1st Meeting

LO Governing iBody: 135th Session

;VHO Executive Board: 20th Session

JNESCO Executive Board: 48th Session

J.N. ECE Housing Committee: 14th Session and Working Parties .

JNREiF Standing Program Subcommittee: 5th Session

J.N. Trusteeship Council: Committee on Administrative Unions .

nter-American Commission of Women: 12th General Assembly. .

^AO Council: 26th Session

'AIGH Directing Council: 2d Meeting

J.N. ECE Working Party on Transport of Perishable Foodstuffs .

JNREF Executive Committee: 5th Session

J.N. ECE Committee on Development of Trade: Working Party
on Arbitration.

iCAO Panel on Vertical Separation of Aircraft: 2d Meeting . . .

J.N. ECAFE Working Party on Small-Scale Industries and Handi-
craft Marketing: 5th Meeting.

Diplomatic Conference Relating to International Registration of
Trademarks.

iV'orld Power Conference: International Executive Council. . . .

international Labor Conference: 40th Session

iV'orld Power Conference: Sectional Meeting

ii'AO Asia-Pacific Forestry Commission: 4th Session

iJATT Balance of Payments Consultations and Intersessional Com-
mittee Meeting.

J.N. ECE Inland Transport Committee: Working Party on Trans-
port of Dangerous Goods.

J.N. ECE Steel Committee and Working Parties

PASO Executive Committee: 31st Meeting

iLO "Art and Labor" Exhibition

[CAO Panel on Future Requirements for Turbo-jet Aircraft: 3d
Meeting.

[nternational Commission for Criminal Police: 26th Session of the
General Assembly.

J.N. ECE: 5th Conference of European Statisticians

WMO Commission for Aerology: 2d Session

tVMO Commission for Instruments and Methods of Observation:
2d Session.

FAO Desert Locust Control: Technical Advisory Committee . . .

rth Berlin International Film Festival

San Francisco May 1-

Cannes May 2-

Bonn May 4-

Turrialba, Costa Rica . . . May 6-

Geneva May 6-

Athens May 6-

New York. May 6-

Geneva May 6-

Rome May 7-

Geneva May 7-

Monaco May 7-

Washington May 10-

Bandung May 13-

Tokyo May 13-

La Paz, Bolivia May 15-

Genoa May 16-

Istanbul May 20-

Lisbon May 20-

New York May 20-

St. Thomas, V. I May 22-

Brussels May 27-

Rome May 27-

Geneva May 27-

Geneva May 27-

Paris May 27-

Geneva May 27-

Geneva May 31-

NewYork May*

Washington June 1-

Madrid June 3-

Rio de Janeiro June 3-

Geneva June 3-

Geneva June 3-

Geneva June 3-

Montreal June 3-

India June 3-

Nice

June 4-

Belgrade June 4-

Geneva June .5-

Belgrade June 5-

Bandung June 8-

Geneva June 10-

Geneva June 11-

Geneva June 11-

Washington June 12-

Geneva June 15-

Montreal June 17-

Lisbon June 17-

Geneva June 17-

Paris June 18-

Paris June 18-

Morocco June 19*-

Berlin June 21-

May 6, 1957

741

Calendar of Meetings — Continued

Scheduled May 1-July 31, 1957— Conlinued

International Rubber Study Group: 13th Meeting

International Council for tlie Exploration of the Sea: 45th meeting .

U.N. ECOSOC Coordination Committee

U.N. ECAFE Committee on Industry and Trade: Subcommittee on
Iron and Steel.

International Whaling Commission: 9th Meeting

International Wheat Council: 22d Session

FAO Desert Locust Control Committee: 4th Session

ILO Governing Body: 136th Session

IAEA Preparatory Commission

International Sugar Council: 13th Session

U.N. Economic and Social Council: 24th Session

Permanent International Commission of Navigation Congresses:
Annual Meeting.

PIANC: 19th International Congress

UNESCO/IBE: 20th International Conference on Public Education'.

Consultative Committee for Economic Development in South and
Southeast Asia (Colombo Plan): Working Group on Asian Re-
gional Nuclear Center.

International Union of Crystallography: 4th General Assembly
and International Congress.

16th International Congress of Pure and Applied Chemistry . . .

19th Conference of International Union of Pure and Applied Chem-
istry.

U.N. Committee on Information from Non-Self-Governing Terri-
tories: 8th Session.

Caribbean Commission: Conference on Demographic Problems of
Caribbean Area.

FAO Latin American Forestry Commission: 6th Session ....

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

U.N. ECAFE Working Party on Housing and Building Materials:
5th Meeting.

U.N. ECOSOC Technical Assistance Committee

Djakarta June 24-

London June 24-

Geneva June 24-

Indonesia June 24-

London June 24-

London June 24-

Morocoo* June 25*

Geneva June 28*-

New York June

London July 2-

Geneva July 2-

London July 8-

London July 8-

Geneva July 8-

Washington July 8*-

Montreal July 10-

Paris July 16-

Paris July 16-

New York July 22-

Trinidad July 25-

Guatemala July 30-

Montevideo July

Bangkok July

Geneva Julv

Current U.N. Documents:
A Selected Bibliography

Security Council

Decisions Taken and Resolutions Adopted by the Security

Council During the Tear 1956. S/INP/11, April 4,

1957. 16 pp. mimeo.
Letter Dated 5 April from the Representative of Israel

Addressed to the President of the Security Council.

S/3810, April 8, 1957. 2 pp. mimeo.

General Assembly

Addenda to the Report of the United Nations High Com-
missioner for Refugees. OflBcial Records : Eleventh Ses-
sion. Supplement 11A(A/3123/Rev. 1/Add. 1 and Add.
2), New York, 1957. 23 pp. printed.

UNREF Executive Committee. UNREF Progress Report
at 30 September 1956. Submitted by the Office of the
High Commissioner. A/ AC. 79/48, December 11, 1956.
102 pp. mimeo.

UNREF Executive Committee. The Problem of Hungar-
ian Refugees in Austria. An assessment of the needs
and recommendations for future action. A/AC. 79/49,
January 17, 1957. 40 pp. mimeo.

UNREF Executive Committee. Analysis of Implementa-
tion of the UNUEF Plan of Operations for 1955 and of
the Hevised Plan of Operations (1956) (Revised Plan
of Operations (l'J57) Part I) A/AC. 70/45/ Add. 1,
.Tanuary 22, 1957. 5 pp. mimeo.

UNREF Executive Committee. Corrigendum No. 1 to the

742

UNREF Progress Report. A/AC. 79/48/Corr. 1, Janu-
ary 22, 1957. 1 p. mimeo.

UNREF Executive Committee. Corrigendum No. 2 to the
UNREF Progress Report. A/AC. 79/48/Corr. 2, Janu-
ary 23, 1957. 1 p. mimeo.

UNREF Executive Committee. Report on Action by the
League of Red Cross Societies in Favour of Hungarian
Refugees in Austria. (Submitted by the League of
Red Cross Societies). A/ AC. 79/52, January 25, 1957.
4 pp. mimeo.

UNREF Executive Committee. The Problem of Hungar-
ian Refugees in Yugoslavia. An assessment of the needs
and recommendations for future action. Submitted by
the High Commissioner. A/AC. 79/54, January 30,
1957. 23 pp. mimeo.

UNREF Executive Committee. The Situation of Refugees
Who Have Recently Left Egypt. A/AC. 79/58, January
31, 1957. 1 p. mimeo.

UNREF Executive Committee. Report on the Fourth
Session of the UNREF Executive Committee. A/AC.
79/60, February 11, 1957. 36 pp. mimeo.

UNREF Excutive Committee. Financial Rules for Volim-
tary Funds. A/AC. 70/10/Rev. 2, February 12, 1957.
8 pp. mimeo.

Disarmament Commission

Letter Dated IS March 1957 Addressed to the Secretary-
General by the Permanent Representative of Japan
Transmitting the Text of a Resohition of the House of
Councillors of Japan on the Prohibition of Atom and
Hydrogen Bombs, Togetlier with a Letter from the
I'rime Jlinister and Minister for Foreign Affairs of
Japan. DC/109, March 25, 1957. 3 pp. mimeo.

Deparfmenf of Stafe Bullefin

Meeting the Challenge of Moving Hungarian Refugees

FIFTH SESSION OF COUNCIL AND EXECUTIVE COMMITTEE AND SIXTH (SPECIAL) SESSION OF
EXECUTIVE COMMITTEE OF INTERGOVERNMENTAL COMMITTEE FOR EUROPEAN MIGRATION

hy George L. Warren

The Intergovernmental Committee for Euro-
pean Migration (Icem), organized on United
States initiative in 1961 to facilitate emigration
from Europe, met the unusual challenge of mov-
ing 88,657 Hungarian refugees out of Austria in
1956, while at the same time maintaining its nor-
mal program at the peak level of 129,597 migrants
moved out of Europe.

The Migration Committee financed the move-
ment of 40,597 Hmigarian refugees, whereas the
costs of the movement of the other 48,060 were
borne directly by the governments which received
the refugees. However, the Migration Committee
was responsible for the organization and dispatch-
ing of all movements and assisted those govern-
ments which supplied transportation in scheduling
planes and trains and in processing the refugees
for embarkation. By the end of the year, 29,915
of the Hungarian refugees had been moved over-
seas. The European countries received the ma-
jority— 58,742 — some for a temporary period pend-
ing their eventual resettlement in overseas coun-
tries.

These facts emerged from the discussions and
actions taken at the fifth session of the Icem Coun-
cil and Executive Committee (September 20 to

• Mr. Warreii, author of the above article, is
Adviser on Refugees and Displaced Persons,
Department of State. He served as altemxite
U.S. delegate to the fifth session of the
ICEM Coimcil and accompanied the U.S.
representative to the sixth (special) session
of the Executive Committee.

October 6, 1956), the meeting of the Working
Party (January 8-14, 1957), and the sixth (spe-
cial) session of the Executive Committee (January
14^18, 1957). 1

Fifth Session of Council

The Union of South Africa joined the Migra-
tion Committee at the fifth session, bringing the
total membership to 27 governments. Spain had
joined at the previous session. The questions of
the provision of migration services and of the de-
velopment of land-settlement projects in Latin
America preoccupied the Council at the fifth
session.

The discussion on the Director's progress report
demonstrated the concern of Italy and the Latin
American countries over the disappointingly low
numbers of workers currently moving to the Latin
American countries and the continuing interest of
the European coimtries in securing the maximmn
possible movement of refugees, under the United
Nations High Commissioner's mandate, out of

' The Department of State announced on Sept. 13, 1956
(press release 483), that Scott McLeod, Administrator of
the Bureau of Security and Consular Affairs, would head
an 11-man delegation to the fifth session of the ICEM.
Representative Francis E. Walter, Representative Ken-
neth B. Keating, and Mr. Warren were named alternate
delegates, and the following puWic members were desig-
nated advisers: Maurice G. Bellows, Walter M. Bester-
man, Walter Bieringer, Oliver Emmerich, George Fuller,
John Mulford, and Frank Waldrop. For an announce-
ment of the delegation to the sixth (special) session of
the Executive Committee, see Bulletin of Jan. 21, 1957,
p. 109. For an article by Mr. Warren on the third and
fourth sessions of the Council and Executive Committee,
see ihiih. June 4. 1956, p. 944.

May 6, J 957

743

Europe. The U.S. representative, Scott McLeod,
pointed out that the full exploitation of the oper-
ations of the processing centers in Austria, made
possible by the U.S. special contribution of
$250,000 in July 1956, would provide an experi-
mental demonstration of those migration services
which should appropriately be provided by the
governments of emigration, those which should
be provided by the governments of immigration,
and finally those which will need inevitably to be
supplied by Icem.

The discussion on the Director's report on mi-
gration services disclosed virtually unanimous
support of services closely related to immediate
movement but only qualified support of other
technical services more related to the promotion
of migration in the future and improvement in
the qualifications of migrants. Italy, Spain,
Greece, and the Latin American countries insisted
on the necessity for expanding the latter type of
services in order that the migrants moved to Latin
America might be better qualified to fit into the
requirements of that area. Australia and Canada
argued that such services should be supplied di-
rectly by the governments concerned. There was,
however, a measure of agreement that Icem's
efforts to assist Latin American countries to de-
velop their specific immigration requirements in
terms of numbers, trade skills, and areas of place-
ment could be useful and that further efforts
should be made to place migrants after arrival in
jobs suited to their capacities.

Financing Land-Settlement Projects

The Director's report on land settlement stated,
in effect, that Icem's technical assistance in this
area would only be productive insofar as interested
governments were themselves prepared to deter-
mine basic policies and to prepare specific projects
of land settlement which might require partial
financing from external sources. Representative
Francis E. Walter of the U.S. delegation stated
that Congress had supplied certain funds under
the Smathers amendment to the Mutual Security
Act which might be applied in the financing of
land-settlement projects but that the initiative
in presenting sound bankable projects rested solely
with the Latin American countries. The repre-
sentatives of Italy, Germany, the Netherlands, and
the Latin American countries expressed their
appreciation of the new potential source of financ-

ing for land-settlement projects and their deter-
mination to work out bilateral arrangements be-
tween emigration and immigration countries
which would facilitate the development of soimd
projects.

Worlting Party on Financing

A lively discussion was precipitated by the ob-
servations of the Australian and U.S. representa-
tives that the recommendations of the Working
Party of 1955 had never been fully implemented
in that per capita contributions still failed to
meet the total costs of transport and related serv-
ices, some governments receiving migrants had
failed to make the minimum contribution of $1 '
per migrant moved to or from their country, and
the contributions to the free funds of the Com-
mittee were still inadequate to cover the expendi-
tures for migration services and the movement of
refugees. The U.S. representative suggested the
necessity of resolving these problems of financing
before the fall session of the Council in 1957 in
order that goverimients might make firm pledges
at that time for 1958 on a more satisfactory plan
of financing. The Council finally resolved to set
up a Working Party composed of the representa-
tives of Australia, Brazil, Italy, the Netherlands,
and the United States with broad terms of refer-
ence to report recommendations to the Executive
Committee.

The Working Party met in Geneva in January.
Before attacking its main task of reviewing the
operations of the Committee and of finding im-
proved methods of financing, the Working Party
considered the effect which the heavy movement of
Hungarian refugees in November-December 1956
had had on the organizational structure and nor-
mal operations of the Committee. Assisted by
representatives of practically all of the other
member governments, who attended as observers
because of the high interest in Hungarian
refugees, the Working Party concluded that the
Migration Committee had not only been able to
expand its services to meet satisfactorily the emer-
gency presented by the Hungarian refugees but
had actually gained new interest and support from
governments in the process.

The Working Party otherwise reported that the
main immediate objective of the Migration Com-
mittee should be to secure higher per capita con-
tributions from member governments, based on
movements to or from their respective countries, in

744

Department of State Bulletin

order that the total of such contributions would
meet the total of costs of transportation and of
the essential migration services closely related to
the actual dispatch and reception of migrants.
A furtlier recommendation was that a special sec-
tion of the budget should be established to include
all expenditures for promotional migration serv-
ices, grants to voluntary agencies for cooperative
services, and costs for the movement of refugees.
The assumption was that governments particu-
larly interested in these programs would contrib-
ute more adequately to their support if these
particular items of expenditure were clearly iso-
lated from the larger expenditures for the move-
ment of indigenous migrants.

Because the Migration Committee faced the
necessity of moving larger numbers of Hungarian
refugees overseas in 1957, not only from Austria
but from the Western European countries, a spe-
cial meeting of the Executive Committee was con-
vened in January 1957. The Executive Commit-
tee found that 129,597 migrants had been moved
out of Europe during 1956 under the normal pro-
gram, the highest movement achieved in any single
year. In 1956, $3,334,493 had been spent on mov-
ing an additional 40,597 Hungarian refugees out
of Austria, of whom 11,947 had gone overseas.^
The estimated income of the Migration Committee
for 1956 totaled $2,769,607 for administration and
$43,103,907 for operations.

Program for 1957

After reviewing the estimates presented by the
administration, the Executive Committee adopted
a program for 1957 calling for the movement over-
seas out of Europe of 108,030 under normal opera-
tions and of an additional 35,450 Hungarian
refugees — 24,000 from Austria and 11,450 from the
Western European countries. During the year,
30,000 Hungarian refugees were also to be assisted
to move from Austria to other European countries
in replacement of those moved overseas from these
countries and in a further effort to reduce the
refugee population in Austria. Financial require-
ments to meet this program were estimated at
$2,734,003 for administration and $49,368,822 for
operations.

■ For tiackgrounci on the Hungarian refugee problem
contained in a report made to President Eisenhower by
Vice President Nixon on Jan. 1, 1957, see ibid., Jan. 21,
1957, p. 94.

In adopting this budget the Executive Com-
mittee found it necessary to send an immediate
telegraphic appeal to member governments for
$7,586,589 in additional contributions, particu-
larly to insure the continuing movement of Hun-
garian refugees. The governments were reminded
in the telegram that a one-time contribution to
transport costs would substantially reduce the
continuing costs of $2,000,000 monthly in main-
taining 70,000 Hungarian refugees remaining in
Austria at the time.

Apart from the Hungarian movement, the esti-
mates of expenditures of the Committee were in-
creased for 1957 to meet additional costs to be
incurred because of the necessity for shipping
migi-ants and refugees to Australasia by the Cape
route rather than through the Suez Canal. These
problems of the budget for 1957 j^recluded any
consideration by the Executive Committee of the
report of the Working Party at the special session.

TREATY INFORMATION

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency.
Done at New York October 26, 1956.'
Ratification deposited: Rumania, April 12, 1957.

Automotive Traffic

Convention on road traffic with annexes. Done at Geneva
September 19, 1949. Entered into force March 26, 1952.
TIAS 2487.
Ratification deposited: Norway, April 11, 1957.

Postal Services

Universal postal 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
2S00.

Ratification deposited: Dominican Republic, March 16,
1957.

Slave Trade

Protocol amending the slavery convention signed at
Geneva September 25, 1926 (40 Stat. 2183), and annex.
Done at New York December 7, 1953. Protocol entered
into force December 7, 1953. Annex entered into force
July ", 1955. TIAS H:<:i2.
Ratification deposited: Norway, April 11, 1957.

'Not in force.

May 6, 7957

745

Whaling

Protocol amending the international whaling convention
of 1946 (TIAS 1849). Done in Washington November
19, 1956." «

Ratification deposited: Norway, April 15, 1957.

BILATERAL

Burma

Elconomic cooperation agreement. Signed at Rangoon
March 21, 19D7. Enters into force upon notification by
Burma that necessary legal requirements have been
fulfilled.

Canada

Agreement relating to navigation improvements in waters
of the St. Marys River and the St. Clair Kiver sections
of the Great Lakes connecting channels. Effected by
exchange of notes at Ottawa November 30, 1956, and
April 8 and 9, 1957. Entered into force April 9, 1957.

Chile

Agreement amending the agricultural commodities agree-
ment of March 13, 1956 (TIAS 3583). Effected by ex-
change of notes at Washington April 15, 1957. Entered
into force April 15, 1957.

Israel

Agreement amending the agricultural commodities agree-
ment of November 10, 1955, as amended (TIAS 3429,
3489, and 3497). Effected by exchange of notes at
Washington April 9 and 10, 1957. Entered into force
April 10, 1957. TIAS 3798.

Japan

Agreement relating to the reciprocal waiver of nonimmi-

grant passport visa fees. Effected by exchange of notes
at Tokyo March 5 and 22, 1957. Entered into force
AprU 21, 1957.

Libya

Development assistance agreement with Libya. Effected
by exchange of notes at Tripoli April 4 and 6, 1957.
Entered into force April 6, 1957.

Morocco

Agreement providing for economic, technical, and related
assistance to Morocco. Effected by exchange of notes
at Rabat April 2, 1957. Entered into force April 2,
1957.

Paraguay

Agreement providing for duty-free entry into Paraguay
and exemption from Internal taxation of relief supplies
and packages. Effected by exchange of notes at
Asuncion April 4, 1957. Entered into force April 4,
1957.

Agreement for financing educational exchange programs.
Signed at Asuncion April 4, 1957. Enters into force on
date of notification by Paraguay of ratification of agree-
ment in accordance with its constitutional process.

Peru

Agreement relating to the waiver of nonimmigrant pass-
port visas and visa fees. Effected by exchange of notes
at Lima April 6 and September 26, 1956, and related
note of October 9, 1956. Entered into force September
26, 1956.

Agreement supplementing the agreement of April 6 and
September 26, 1956, relating to passport visas and visa
fees. Effected by exchange of notes at Lima January
4 and 7, 1957. Entered into force January 7, 1957.

United States-Netherlands Air Transport Agreement

Press release 189 dated April 3
DEPARTMENT ANNOUNCEMENT

Delegations of the United States and the King-
dom of the Nethei'lands, which have been meeting
in Wasliington since March 19, conckided an air
transport agreement on April 3, 1957.^ Under
Secretary of State Christian Herter signed on be-
half of the U.S. Government, and E. H. van der
Beugel, Under Secretary of State for Foreign
Affairs, signed for the Government of the King-
dom of the Netherlands. The agreement de-
scribes the routes to be served by the flag carriers
of both countries and contains the principles re-

' Not in force.

' For an announcement of the resumption of negotiations
on Mar. 19, togetlier with an exchange of letters between
President Eisenhower and Netherlands Prime Minister
Willem Drees, see Bulletin of Apr. 8, 1957, p. 579.

lating to the operation of air transport services
which are embodied in the standard Bermuda-
type agreement.

Under the new agreement, the Netherlands car-
riers are authorized to serve New York and Hous-
ton and to operate services from the Netherlands
Antilles to Miami via intermediate points and di-
rect to New York. The U.S. carriers are given
broad operating rights to and beyond the Nether-
lands, Surinam, and the Netherlands Antilles.

The agreement is provisionally operative from
the date of its signature and will enter into force
definitively on the date of receipt by the U.S. Gov-
ernment of appropriate notification that the ap-
proval constitutionally required in the Kingdom
of the Netherlands has been obtained. Ivettei-s
have been exchanged on the subject of the right to
operate air services to Jjos Angeles.

I

746

Department of Slate Bulletin

EXCHANGE OF LETTERS

TEXT OF AGREEMENT

April 3, 1957
Dear Mr. Secretary : On behalf of the Govern-
nent of the Kingdom of tlie Netlierhmds I express
Tiy disappointment that, in concluding the air
.ransport agreement, it has not been possible at the
present moment to include the right to operate air
services from the Netherlands to Los Angeles and
?ice versa by an airline designated by the afore-
said Government.

I want to convey to you the intention of the
Grovernment of the Kingdom of the Netherlands
to open as soon as possible consultations on the
sasis of the provisions contained in article XII of
the Agreement in order to include the above men-
tioned route in the schedule of the Agreement.

Please accept, Mr. Secretary, the assurances of
my highest consideration.
Sincerely yours,

E. H. VAN DER BeUGEL

Under Secretary of State
for Foreign Affairs

The Secretaet of State,
Washington, D. C.

April 3, 1957
Dear Mr. van der Beugel : The Department has
noted the disappointment expressed in your letter
of April 3, 1957, at the present inability of the
United States to grant traffic rights at Los Angeles
to the Dutch airline and has noted your intention
of requesting at a future date that the United
States grant such rights.

As you are aware, the consultation provisions
contained in Article 12 of the Agreement are,
amongst other things, designed to provide a
mechanism by means of which route pattern ad-
justments may be reviewed on the request of either
party to ensure that the agreement, as far as pos-
sible, will be mutually satisfactory.
Sincerely yours.

Christian A. Herter

Under Secretary of State

His Excellency

E. H. van der Beugel,

Under Secretary of State for

Foreign Affairs of the Netherlands.

AIR TRANSPORT AGREEMENT BETWEEN THE
GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE
KINGDOM OP THE NETHERLANDS

The Government of the United States of America and
the Government of the Kingdom of The Netherlands,

Desiring to conclude an Agreement for the purpose o£
promoting air communications between their respective
territories,

Have accordingly appointed authorized representatives
for this purpose, who have agreed as follows :

Abticle 1
For the purposes of the present Agreement:

(A) The term "aeronautical authorities" shall mean
in the case of the United States of America, the Civil
Aeronautics Board and any person or agency authorized
to perform the functions exercised at the present time
by the Civil Aeronautics Board and, in the case of the
Kingdom of The Netherlands, any person or agency des-
ignated as such by the Government of the Kingdom of
The Netherlands.

(B) The term "designated airline" shall mean an air-
line that one contracting party has notified the other
contracting party, in writing, to be the airline which will
operate a specific route or routes listed In the Schedule
of this Agreement.

(C) The term "territory" in relation to a State shall
mean the land areas and territorial waters adjacent
thereto under the sovereignty, suzerainty, protection,
mandate or trusteeship of that State.

(D) The term "air service" shall mean any scheduled
air service performed by aircraft for the public transport
of passengers, mail or cargo.

(E) The term "international air service" shall mean
an air service which passes through the air space over
the territory of more than one State.

(F) The term "stop for non-traffic purposes" shall
mean a landing for any purpose other than taking on or
discharging passengers, cargo or mail.

Article 2

Each contracting party grants to the other contract-
ing party rights necessary for the conduct of air services
by the designated airlines, as follows: the rights of
transit, of stops for non-traffic purposes, and of commer-
cial entry and departure for international traffic in pas-
sengers, cargo, and mall at the points in its territory
named on each of the routes specified In the appropriate
paragraph of the Schedule annexed to the present
Agreement.

Aeticle 3

Air service on a specified route may be inaugurated by
an airline or airlines of one contracting party at any
time after that contracting party has designated such
airline or airlines for that route and the other contract-
ing party has given the appropriate operating permission.

May 6, 1957

747

Such other party shall, subject to Article 4, be bound
to give this permission without undue delay, provided
that the designated airline or airlines may be required
to qualify before the competent aeronautical authorities
of that party, under the laws and regulations normally
applied by these authorities, before being permitted to
engage in the operations contemplated by this Agreement.

Aeticle 4

Each contracting party reserves the right to withhold
or revoke the privilege of exercising the rights provided
for in Article 3 of this Agreement from an airline desig-
nated by the other contracting party in the event that
it is not satisfied that substantial ownership and effective
control of such airline are vested in nationals of the
other contracting party, or in case of failure by "such
airline to comply with the laws and regulations referred
to in Article 5 hereof, or in case of the failure of the
airline or the government designating it otherwise to
perform its obligations hereunder, or to fulfill the con-
ditions under which the rights are granted in accord-
ance with this Agreement.

Article 5

(A) The laws and regulations of one contracting party
relating to the admission to or departure from its terri-
tory of aircraft engaged in international air navigation,
or to the operation and navigation of such aircraft while
within its territory, shall be applied to the aircraft of the
airline or airlines designated by the other contracting
party, and shall be complied with by such aircraft upon
entering or departing from and while within the territory
of the first contracting party.

(B) The laws and regulations of one contracting party
relating to the admission to or departure from its terri-
tory of passengers, crew, or cargo of aircraft, such as
regulations relating to entry, clearance, immigration,
passports, customs, and quarantine shall be complied
with by or on behalf of such passengers, crew or cargo
of the other contracting party upon entrance into or
departure from, and while within the territory of the
first contracting party.

Akticle 6

Certificates of airworthiness, certificates of competency
and licenses issued or rendered valid by one contracting
party, and still in force, shall be recognized as valid by
the other contracting party for the purpose of operating
the routes and .services provided for in this Agreement,
provided that the requirements under which such cer-
tificates or licenses were issued or rendered valid are
equal to or above the minimum standards which may be
established pursuant to the Convention on International
Civil Aviation. Each contracting party reserves the
right, however, to refuse to recognize, for the purpose
of flight above its own territory, certificates of compe-
tency and licenses granted to its own nationals by another
State.

Article 7

In order to prevent discriminatory practices and to
assure equality of treatment, both contracting parties
agree that :

(a) Each of the contracting parties may impose or
permit to be imposed just and reasonable charges for the
use of public airports and other facilities under its con-
trol. Each of the contracting parties agrees, however,
that these charges shall not be higher than would be i
paid for the use of such airports and facilities by its na- i
tional aircraft engaged in similar international services, i

(b) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores in-
troduced into the territory of one contracting party by
or on behalf of the airline or airlines of the other con-
tracting party or its nationals and intended solely for
use by aircraft of such contracting party in international
services shall be exempt on a basis of reciprocity from
customs duties, excise taxes, inspection fees and other
similar national duties, taxes or charges, even though
such supplies be used or consumed by such aircraft on
flights in that territory. Articles so introduced into the
territory of a contracting party shall be kept under cus-
toms supervision until required for the use provided for
in this paragraph or for re-exportation.

(c) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores re-
tained on board aircraft of the airlines of one contracting
party authorized to operate the routes and services pro-
vided for in this Agreement shall, upon arriving in or
leaving the territory of the other contracting party, be
exempt on a basis of reciprocity from customs duties,
inspection fees and other similar national duties or
charges, even though such supplies be used or consumed
by such aircraft on flights in international services in
that territory.

(d) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores taken
on board aircraft of the airlines of one contracting party
in the territory of the other and used in international
services shall be exempt on a basis of reciprocity from
customs duties, excise taxes, inspection fees and other
similar national duties, taxes or charges, even though
such supplies be used or consumed by such aircraft on
flights in that territory.

Aeticle 8

There shall be a fair and equal opportunity for the air-
lines of each contracting party to operate on any route
covered by this Agreement. I

Aeticle 9 I

In the operation by the airlines of either contracting
party of the air services described in this .Vgreement, the
interest of the airlines of the other contracting party
shall be taken into consideration so as not to affect un-
duly the services which the latter provides on all or
part of the same routes.

AETICLE 10 1

The air services made available to the public by the
airlines operating under this Agreement shall bear a
close relationship to the requirements of the public for
such services.

It is the understanding of both contracting parties
that services provided by a designated airline under the
present Agreement shall retain as their primary objective

748

Department of State Bulletin

tie provision of capacity adequate to the traflBc demands
etween the couutry of which such airline is a national
nd the countries of ultimate destination of the traffic.
;?he right to embarl; or disembarlv on such services inter-
kational traffic destined for and coming from third coun-
ries at a point or points on the routes specified in this
Agreement shall be applied in accordance with the gen-
iral principles of orderly development to which both con-
racting parties subscribe and shall be subject to the
jeneral principle that capacity should be related:

(a) to traffic requirements between the country of ori-
fin and the countries of ultimate destination of the
traffic ;

(b) to the requirements of through airline operation;
ind,

(c) to the traffic requirements of the area through
ivhich the airline passes after talking account of local and
regional services.

Abticle 11

Rates to be charged on the routes provided for in this
Agreement shall be reasonable, due regard being paid
to all relevant factors, such as cost of operation, reason-
able profit, and the rates charged by any other carriers,
as well as the characteristics of each service, and shall
be determined in accordance with the following para-
graphs :

(A) The rates to be charged by the airlines of either
contracting party between points in the territory of the
United States and points in Uie territory of the Kingdom
of The Netherlands referred to in the annexed Schedule
shall, consistent with the provisions of the present Agree-
ment, be subject to the approval of the aeronautical au-
thorities of the contracting parties, who shall act in ac-
cordance with their obligations under this Agreement,
within the limits of their legal powers.

(B) Any rate proposed by an airline of either contract-
ing party shall be filed with the aeronautical authorities
of both contracting parties at least thirty (30) days before
the proposed date of introduction ; provided that this
period of thirty (30) days may be reduced in particular
cases if so agreed by the aeronautical authorities of each
contracting party.

(C) During any period for which the Civil Aeronautics
Board of the United States has approved the traffic con-
ference procedures of the International Air Transport
Association (hereinafter called lATA), any rate agree-
ments concluded through these procedures and involving
United States airlines will be subject to approval of the
Board. Rate agreements concluded through this ma-
chinery may also be required to be subject to the approval
of the aeronautical authorities of the Kingdom of The
Netherlands pursuant to the principles enunciated in
paragraph (A) above.

(D) The contracting parties agree that the procedure
described in paragraphs (E), (F) and (G) of this Article
shall apply :

1. If, during the period of the approval by both con-
tracting parties of the lATA traffic conference procedure,
either, any specific rate agreement is not approved within
a reasonable time by either contracting party, or, a con-
ference of lATA is unable to agree on a rate, or

2. At any time no lATA procedure is applicable, or

3. If either contracting party at any time withdraws
or fails to renew its approval of that part of the lATA
traffic conference procedure relevant to this Article.

(E) In the event that power is conferred by law upon
the aeronautical authorities of the United States to fis
fair and economic rates for the transport of persons and
property by air on international services and to suspend
proposed rates in a manner comparable to that in which
the Civil Aeronautics Board at present is empowered to
act with respect to such rates for the transport of persons
and property by air within the United States, each of the
contracting parties shall thereafter exercise its authority
in such manner as to prevent any rate or rates proposed
by one of its airlines for services from the territory of
one contracting party to a point or points in tlie territory
of the other contracting party from becoming effective,
if in the judgment of the aeronautical authorities of the
contracting party whose airline or airlines is or are pro-
posing such rate, that rate is unfair or uneconomic. If
one of the contracting parties on receipt of the notifica-
tion referred to in paragraph (B) above is dissatisfied
with the rate proposed by the airline or airlines of the
other contracting party, it shall so notify the other con-
tracting party prior to the expiry of the first fifteen (15)
of the thirty (30) days referred to, and the contracting
parties shall endeavor to reach agreement on the appro-
priate rate.

In the event that such agreement is reached, each con-
tracting party will exercise its best efforts to put such
rate into effect as regards its airline or airlines.

If agreement has not been reached at the end of the
thirty (30) day ijeriod referred to in paragraph (B)
above, the proposed rate may, unless the aeronautical
authorities of the country of the air carrier concerned
see tit to suspend its application, go into effect provision-
ally pending the settlement of any dispute in accordance
with the procedure outlined in paragraph (G) below.

(F) Prior to the time when such power may be con-
ferred upon the aeronautical authorities of the United
States, if one of the contracting parties is dissatisfied
with any rate proposed by the airline or airlines of either
contracting party for services from the territory of one
contracting party to a point or points in the territory of
the other contracting party, it shall so notify the other
prior to the expiry of the first fifteen (15) of the thirty
(30) day period referred to in paragraph (B) above,
and the contracting parties shall endeavor to reach
agreement on the appropriate rate.

In the event tliat such agreement is reached, each con-
tracting party will use its best efforts to cause such
agreed rate to be put into effect by its airline or airlines.

It is recognized that if no such agreement can be
reached prior to the expiry of such thirty (30) days, the
contracting party raising the objection to the rate may
talve such steps as it may consider necessary to prevent
the inauguration or continuation of the service in question
at the rate complained of.

(G) When in any case under paragraphs (E) or (F)
of this Article the aeronautical authorities of the two
contracting parties cannot agree within a reasonable time
upon the appropriate rate after consultation initiated by
the complaint of one contracting party concerning the

May 6, 1957

749

proposed rate or an existing rate of the airline or air-
lines of the other contracting party, upon the request of
either, the terms of Article 13 of this Agreement shall
apply.

Abticle 12

Consultation between the competent authorities of both
contracting parties may be requested at any time by either
contracting party for the purpose of discussing the in-
terpretation, application, or amendment of the Agreement
or Schedule. Such consultation shall begin within a pe-
riod of sixty (60) days from the date of the receipt of
the request by the Department of State of the United
States of America or the Ministry of Foreign Affairs of
the Kingdom of The Netherlands as the case may be.
Should agreement be reached on amendment of the Agree-
ment or its route schedule, such amendment will come into
effect upon confirmation by an exchange of diplomatic
notes.

ABTICI.E 13

Except as otherwise provided in this Agreement, any
dispute between the contracting parties relative to the
interpretation or application of this Agreement which
cannot be settled through consultation shall be submitted
for an advisory report to a tribunal of three arbitrators,
one to be named by each contracting party, and the third
to be agreed upon by the two arbitrators so chosen, pro-
vided that such third arbitrator shall not be a national
of either contracting party. Each of the contracting
parties shall designate an arbitrator within two months
of the date of delivery by either party to the other party
of a diplomatic note requesting arbitration of a dispute ;
and the third arbitrator shall be agreed upon within one
month after such period of two months.

If either of the contracting jiarties fails to designate
its own arbitrator within two months, or if the third ar-
bitrator is not agreed upon within the time limit indi-
cated, either party may request the President of the In-
ternational Court of Justice to make the necessary ap-
pointment or appointments by choosing the arbitrator or
arbitrators.

The contracting parties will use their best efforts under
the powers available to them to put into effect the opin-
ion expressed in any such advisory report. A moiety of
the exi)enses of the arbitral tribunal shall be borne by
each party.

Akticlb 14

This Agreement, all amendments thereto, and con-
tracts connected therewith shall be registered with the
International Civil Aviation Organization.

Akticle 15
If a general multilateral air transport Convention ac-
cepted by both contracting parties enters into force, the
present Agi-eement shall be amended so as to conform with
the provisions of such Convention.

Artioi.e 16
Either of the contracting parties may at any time notify
the other of its intention to terminate the present Agree-
ment. Such a notice shall be sent simultaneously to the
International Civil Aviation Organization. In the event
such communication is made, this Agreement shall termi-

nate one year after the date of its receipt, unless by
agreement between the contracting parties the notice of
intention to terminate is withdrawn before the expira-
tion of that time. If the other contracting party faUs
to acknowledge receipt, notice shall be deemed as having
been received fourteen days after its receipt by the Inter-
national Civil Aviation Organization.

Abticle 17

The present agreement shall be provisionally operative
from the date of its signature. After the approval con-
stitutionally required in the Kingdom of The Netherlands
has been obtained, the Agreement shall enter into force
definitively on the date of receipt by the Government of
the United States of America of an appropriate notifica-
tion from the Government of the Kingdom of The
Netherlands.

In witness whereof, the undersigned, being duly author-
ized by their respective Governments, have signed the
present Agreement.

Done in duplicate at Washington this 3rd day of April,
1957.

For the Government of

the United States of America :

Christian A. Hebtek

For the Government of the
Kingdom of The Netherlands :

E. H. VAN DER BeUGEL

SCHEDULE

1. An airline or airlines designated by the Government of
the United States shall be entitled to operate air services
on each of the air routes specified via intermediate points,
in both directions, to make scheduled landings in the
Kingdom of The Netherlands at the points specified in this
paragraph :

a. From the United States via intermediate points to
Amsterdam and beyond.

b. From the United States and/or an airport serving
the Canal Zone via intermediate points to Aruba,
Curacao, St. Maartens, and Paramaribo and be-
yond.

2. An airline or airlines designated by the Government
of the Kingdom of The Netherlands shall be entitled to
operate air services on each of the air routes specified via
intermediate points, in both directions, and to make sched-
uled landings in the United States at the points specified
in this paragraph :

a. The Netherlands via intermediate points in the
UK, Ireland, Newfoundland and the Azores to
New York.

b. The Netherlands via intermediate points in the
UK, Ireland, Iceland, Greenland, Newfoundland,
Azores and Montreal to Houston.

c. The Netherlands Antilles via the intermediate
points Ciudad Trujillo, Port au Prince, Kingston,
Montego Bay, Camaguey, Havana, to Miami. |

d. The Netherlands Antilles to New York.

3. Points on any of the specified routes may at the option
of the designated airlines be omitted on any or all flights.

750

Department of State Bulletin

lay 6, 1957 Index

Vol. XXXVI, No. 932

Lfghanistan. Ambassador Richards' Mission to
Middle East (texts of communiques and press
statements) 724

Lgriculture. Agricultural Commodity Sales Agree-
ment With Colombia 731

American Principles. Dynamic Peace (Dulles) . 715

American Republics

Economic Interdependence in the Americas (Rubot-

I tom) 732

The Two Halves of Progress (Hill) 736

Aviation. United States-Netherlands Air Trans-
port Agreement (text) 746

Colombia. Agricultural Commodity Sales Agree-
ment With Colombia 731

jEconomic Affairs

[Economic Interdependence in the Americas (Rubot-

tom) 732

TheTwoHalvesof Progress (Hill) 736

Germany. Visit of Chancellor Adenauer .... 719

Hungary

IMeeting the Challenge of Moving Hungarian Refu-
gees (Warren) 743

U.S. Assistance to Hungarian Refugees 720

Immigration and Naturalization. Immigration
Potentials Under the Basic Immigration Law
(Coulter) 722

International Organizations and Conferences

Calendar of Meetings 740

Meeting the Challenge of Moving Hungarian Refu-
gees (Warren) 743

Iran. Ambassador Richards' Mission to Middle
East (texts of communiques and press state-
ments) 724

Iraq. Ambassador Richards' Mission to Middle
East (tests of communiques and press state-
ments) 724

Lebanon. Ambassador Richards' Mission to Middle
East (texts of communiques and press state-
ments) 724

Libya. Ambassador Richards' Mission to Middle
East (texts of communiques and press state-
ments) 724

Middle East. Ambassador Richards' Mission to
Middle East (texts of communiques and press
statements) 724

Mutual Security. Dynamic Peace (Dulles) . . . 715

Netherlands. United States-Netherlands Air
Transport Agreement (text) 746

North Atlantic Treaty Organization. NATO Schol-
arship Awarded to American Student 720

Pakistan. Ambassador Richards' Slission to Middle
East (texts of communiques and press state-
ments) 724

Refugees. U.S. Assistance to Hungarian Refugees . 720

Saudi Arabia. Ambassador Richards' Mission to
Middle East (texts of communiques and press
statements) 724

Switzerland. Letters of Credence (de Torrents ) . 719

Treaty Information

Agricultural Commodity Sales Agreement With

Colombia 731

Current Actions 745

United States-Netherlands Air Transport Agree-
ment (text) 746

Turkey. Ambassador Richards' Mission to Middle
East (texts of communiques and i)ress state-
ments) 724

U.S.S.R. U.S. Requests Departure of Soviet Em-
bassy Employee 719

United Nations

Current U.N. Documents 742

Dynamic Peace (Dulles) 715

Name Index

Adenauer, Konrad 719

Coulter, Eliot B 722

de Torrents, Henry 719

Dulles, Secretary 715

Hill, Robert C 736

Mashkantsev, Gennadi F 719

Richards, James P 724

Rubottom, Roy R., Jr 732

Warren, George L 743

von Brentano, Heinrich 719

Check List of Department of State

Press Releases: April 15-21

Releases may be obtained from the News Division,

Department of State, Washington 25, D. C.

Press releases issued prior to April 15 which ap-

pear

in this

issue of the Bulletin are Nos. 176 of

March 28, 189 of April 3, 193 of April 5, 197 of April

9, 202 of April 11, 207, 208, and 210 of April 12, and

212 of April 13.

No.

Date

Subject

•213

4/16

Hill : "The Importance of Patriotism."

214

4/16

Emergency financial aid to Hungarian
escapees.

*215

4/16

Rubottom nomination (biographic de-
tails).

216

4/17

Switzerland credentials (rewrite).

217

4/17

Surplus commodity agreement with
Colombia.

218

4/17

Departure of Soviet Embassy employee
requested.

*219

4/18

Educational exchange.

*220

4/18

Educational exchange.

♦221

4/18

Educational exchange.

*222

4/18

Educational exchange.

223

4/19

Visit of Chancellor Adenauer (re-
write).

*224

4/19

Interim reply to Canadian note.

*225

4/19

Cabot nomination (biographic details).

226

4/19

Interim report on Richards mission.

•227

4/19

Hill nomination (biographic details).

•228

4/19

White nomination (biographic de-
taUs).

229

4/21

Dulles : "Dynamic Peace."
ted.

♦Not prin

0. S. •OVERHIIEKT milTIHC OFFICE. I9S7

the

Department

of

State

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Highlights of

Foreign Policy Developments — 1956

Prepared as a readily accessible source for reference to some of
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Vol. XXXVI, No. 933 May 13, 1957

VB. P. L

SECRETARY DULLES' NEWS CONFERENCE OF

APRIL 23 765

THE MIDDLE EASTERN POLICY OF THE UNITED

STATES • by Assislant Secretary Rountree 755

IRAN : AN APPRECIATION • by Ambassador Selden Chapin . 759

THE U.N. ECONOMIC COMMISSION FOR ASIA AND

THE FAR EAST • Statements by Walter M. Kotschnig . 780

SECURITY COUNCIL RESUMES CONSIDERATION OF
ITEM ON SUEZ CANAL

Statement by Ambassador Henry Cabot Lodge ....... 775

Letter From the Egyptian Foreign Minister Transmitting

Egyptian Declaration 776

1

4

For index see inside back cover

THE DEPARTIVIENT OF STATE

Vol. XXXVI, No. 933 • Pubucation 6492
May 13, 1957

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The Middle Eastern Policy of the United States

hy William M. Rountree

Assistant Secretary for Near Eastern, South Asian and African Affairs ^

I welcome the opportunity to be with you this
evening and to discuss the policy of the United
States with respect to the Middle East. The topic
of yovu- 2-day meeting, "The Middle East and Free
World Security," admirably fits the framework
within which the United States Government has
approached and continues to approach the issues
in this area.

Security is a matter of supreme importance, to
nations and to peoples, throughout the world. The
absence of security provides ground for those fears
and suspicions which are the roots of instability.
Its presence creates an atmosphere of confidence
within which a people can build constructively for
the future.

In any discussion of American policies in the
Middle East we can properly lay heavy stress on
the importance of the United States support for
the independence and territorial integrity of each
of the countries in the region. In a broad sense
their security is our security. If they feel them-
selves strong and recognize our sincere interest,
and the interest of others, in their future, fruitful
cooperation on matters of common concern be-
comes possible. Once effective support for their
independence, sovereignty, and integrity is as-
sured, many of the other problems we face to-
gether become easier of solution.

In stressing our keen concern for the preserva-
tion of the independence of other nations, we seek
to make clear the sincere and unselfish nature of
that concern. Our interest arises naturally from
our own traditions of freedom and independence

' Address made before the National Academy of Eco-
nomics and Political Science, Brookings Institution, at
Washington, D. C, on Apr. 24 (press release 245).

May 13, 1957

and from a deep awareness of the consequences to
other nations, to the free world, and to ourselves
of the loss of true sovereignty by any nation.

"We are, ourselves, dependent upon other
nations. We need from them political and moral
support. We need also from them material goods
for our economy. Our long history of interde-
pendence with the nations of Western Europe il-
lustrates how we can achieve these objectives best
through dealing on a basis of respect and equality
with free, prosperous, and independent countries.
American support for the independence and sov-
ereignty of the nations of the Middle East seeks to
create that same kind of strong relationship.

So long as freedom is preserved among the Mid-
dle Eastern countries and the historic efforts of
Russia to seize control of the area continue un-
availing, we can expect to accomplish many other
objectives of American policy on the basis of the
completely mutual interests between ourselves and
the sovereign nations. We can, for example, ex-
pect the continued supply throughout the world of
the area's mineral resources. Such resources are
of value to the states possessing them only if they
find markets among the world's consumers. They
are of value to us only if our access is assured by
friendly, stable, and sovereign governments. We
can, similarly, expect the continued availability of
transportation and communications facilities in
this vital crossroads of the world when these
nations are secure in their relationships with us.
We can look forward to a continuation of all
forms of commercial intercourse with friendly
countries on a basis advantageous to them and to
ourselves.

There is a myth I have heard in the Middle East

755

that the United States seeks to keep the nations in
the area undeveloped and thus subservient. This
myth, widely circulated by Communists, states
that we can only obtain what we want in the way
of raw materials and markets if these nations re-
main poor and undeveloped. Nothing is, of
course, farther from the truth. The more these
nations rise to their full potentialities of develop-
ment and to their full stature as sovereign entities,
the more fruitful will be our relationship.

I am certain that the great majority of the peo-
ples of the Middle East have the same desire as
we for close, friendly, and beneficial relations and
for the dignity and recognition that a strong, free
nation commands. Yet today, among some of the
nations of the area, there is fear and turmoil,
suspicion of the West, courting of the Communist
East, confusion. Wliy?

Threats to Sovereignty

The sovereignty and territorial integrity of the
nations of the Middle East are threatened by
several factors. Each factor creates opportunities
for irresponsible exploitation by Communist ele-
ments, who seek not stability but the chaotic in-
stability that opens the door to their advances.
These factors and their exploitation by the Com-
munists impede also the development of that re-
lationship of mutual interest and common bene-
fit between ourselves and the nations of that area
which we strive continually to foster.

Let us begin with nationalism. This is in itself
a good thing. True nationalism represents, in
fact, the expression of that independence and
sovereignty which we seek to support. But the
banner of nationalism can be picked up by emo-
tional, xenophobic, and unconstructive elements.
In certain disturbed countries, nationalist slogans
are used to arouse street mobs and to terrorize
many who work in the true interests of their
nation.

The extremes of nationalism are fed and stimu-
lated in part by the bitter emotions arising from
disputes between and among nations of the area.
There are quarrels over boundaries, dynastic
differences, and disputes between governments in
power in individual nations. Of the many dis-
putes, that between the Arab States and Israel is
the deepest and its consequences the gravest.
Wlien nations of the area, as do those in the Arab-
Israel area, believe their security threatened by

each other, they become less conscious of threats
from outside. We work continually, both directly
and through the United Nations, to find means by
which this dispute in its many ramifications can
be moved nearer to a peaceful settlement. Until
there is progress in this long, slow struggle to
relieve tensions caused by such local disputes,
many of the countries will not be in a position to
achieve that confident independence which is the
basis for a relationship of common interest with
other nations of the world. As these disputes
continue, so also will the opportunities for those
who, for varying ends, seek to perpetuate the state
of insecurity and instability which now char-
acterizes some parts of the area.

Much has been heard of the role of colonialism
in the present situation in the Middle East. The
tragedy today is that much of the good that came
from past relationships has been forgotten, while
slogans divert attention from the new colonialism
of the Soviet Union.

The approach of the Soviet Union and its satel-
lites to the Middle East is irresponsible. The So-
viet Union has not worked constructively to seek
solutions to many of the problems of the area
but has, on many occasions, blocked solutions to
serve its own ends. Soviet contributions to the
economic progress of the region have been slight.
Having few responsibilities, the Soviets can adopt
with ease the slogans of popular extremes and as-
sume credit for sentiments spoken, even where ac-
tions are not taken. The Soviet actions in Europe
and the Far East seem remote to some of the peo-
ples of the area, primarily concerned, as they are,
with problems of a more local character. Reports
of Soviet activities are often discounted as "im-
perialist" propaganda. Many heretofore uncon-
vinced, however, are beginning to see tlie trans-
parency of the Soviet moves.

In enumerating in a general way some of the
factors with which we must deal, we do not wish
to imply that they are common t-o all the nations
of the Middle East. "\^nnle some are present in
varying degrees in every country, many of the
nations, such as those joined together in the Bagh-
dad Pact, are taking active steps to guarantee their
independence and security. Iraq has demon-
strated in its development program the benefits
of astablishing confidence and of the wise use of
its revenues. Turkey is a stanch ally in Nato
and a member of the Baghdad Pact. Pakistan

756

Deparfmenf of Staie Bulletin

has demonstrated its appreciation of the meaning
of free-world cooperation in both the Baghdad
Pact and Seato. Iran has remained firm in its
decision to support collective security. We have
established witli these nations the type of coop-
eration for mutual benefit we seek with all free
nations.

There are other nations which, for a variety of
reasons, prefer not to be alined formally with any
group of nations for the purposes of collective
security. These nations, such as India and Saudi
Arabia, command our respect for their alert safe-
guarding in other ways of their freedom and in-
tegrity. Our greatest concern today lies in that
area affected by the Arab-Israel dispute, where
many factors threaten the stability and independ-
ence of sovereign nations and where emotions aris-
ing in a troubled area sometimes dull the aware-
ness of greater threats to their freedom. Even
in this area, however, the United States has sub-
stantial and valued friends. Indeed, if one under-
takes a country-by-country survey of the area, the
extent to which the United States enjoys close
and mutually beneficial relations with the nations
is really impressive.

U.S. Approach to Middle East Problems

The problems we face are complex, as are the
reasons for many of the fears, the suspicions, and
the hesitations which now occasionally mark our
relationship with Middle Eastern peoples. We
have the conviction that our purpose in the area
is an honest one, expressing a genuine interest in
the long-term welfare and security of the peoples
and nations in that region.

We have the advantage that many regard us as
a stanch friend. Our philanthropic and religious
institutions were among the first from the West
to enter the Middle East. Their influence is still
felt. As new nations were created in the area, we
welcomed them as we are now welcoming those
new nations being created in Africa. Our interest
today in these countries is founded on an interest
we have long held and expressed.

United States policy in the area today ap-
proaches burning problems, first, on a basis of im-
partiality. The United States seeks earnestly to
use its influence in the interests of resolving the
various disputes within the area. To be effective
in the long run, that influence must be exerted
from a position of impartiality. We camiot af-

ford to be swayed by the emotional positions and
sentiments of any side. Our effectiveness re-
mains only so long as we enjoy the confidence of
all sides — even though we may disappoint many
by not supporting their position.

We approach these problems, too, on a firm
basis of principle. We seek a world where in-
ternational law is respected and defined. The
events of last October demonstrated conclusively
to the peoples of the area our dedication to the
principles of the United Nations Charter. As
Secretary of State Dulles said to the Associated
Press luncheon last Monday : ^

Our dedication to the principles of the United Nations
Charter was severely tested by the recent Middle East
crisis. We were then faced with a distressing and un-
precedented conflict of loyalties. Historic ties would
have led us to acquiesce in the forcible action that was
begun. But this would have involved disloyalty to the
United Nations undertaking that all members renounce
the use of force except in defense against armed attack.
That same pledge is also embodied in all our treaties of
alliance. We decided to be loyal to that commitment.

We seek, too, the strengthening of those inter-
national organs which have been created to con-
sider and resolve disputes among nations. We
have worked closely with and through the United
Nations in many of the most critical problems of
the area, particularly those related to the Suez
Canal and the Arab-Israel dispute. In our view
the charter of the United Nations prescribes not
only the means for a peaceful settlement of dis-
putes but also for settlement in conformity with
justice and international law.

We have also worked through the United Na-
tions in meeting the serious situation created by
the Arab refugees from Palestine. Substantial
United States financial support has been given
through the United Nations Eelief and Works
Agency to maintain these people. In so doing
we give concrete evidence of our concern over this
problem and our support for the activities of the
United Nations.

Working directly to lessen the consequences of
disputes and to seek settlements where this can
effectively be done is, of course, only a part of our
policy. An important part is that which seeks to
build constructively, on the basis of mutual re-
spect and interest, strong economies and defenses
in the free nations of the Middle East.

' Bulletin of May 6, 1957, p. 715.

May ?3, J957

757

Our economic assistance programs in most of
the area have been relatively modest in size, yet
throughout the region there is testimony to their
effectiveness. In some cases, that effectiveness
can be measured in substantial U.S. contributions
to the economic development of the comitry as a
whole. In other cases, the United States has sup-
plied a technical element required to support de-
velopment programs financed almost wholly by
the local country. The impact cannot always be
measured on a national scale, but the impact of
the programs is loiown to be substantial.

Economic development can only proceed where
there is an element of security and a freedom from
fear of external or internal threats. "VVe have
sought to build that element of security through
military assistance to those countries primarily
threatened by the Soviet menace. The United
States has not formally adhered to the Baghdad
Pact, but it has indicated its firm support through
membershii) in the various committees of the pact
and through declarations stressing our belief in
the principles of collective security. On Novem-
ber 29, 1956, for example, the Department said,
referring to the Baghdad Pact nations : ^

The United States reaffirms its support for the collee-
tive efforts of these nations to maintain their independ-
ence. A threat to the territorial integrity or political in-
dependence of the members would be viewed by the
United States with the utmost gravity.

The American Doctrine

More recently, the President proposed and Con-
gress passed the joint resolution * which foi'ms the
basis of what has come to be known as the Ameri-
can Doctrine. In this the United States seeks to
define its clear interest in the preservation of the
independence and integrity of the nations of the
area in the face of threats from within and with-
out posed by international communism. It seeks,
further, to provide a basis on which economic and
military assistance can be used to meet immediate

threats arising out of Communist activities and to
provide authority under which the President
could, when requested by nations of the area, com-
mit United States forces to defend against Com-
munist aggression. The President simimed up
his purposes in his message to Congress on Janu-
ary 5: °

The jiolicy which I outline involves certain burdens
and indeed risks for the United States. Those who
covet the area will not like what is proposed. Already,
they are grossly distorting our pui-pose. However, be-
fore this Americans have seen our nation's vital interests
and human freedom in jeopardy, and their fortitude and
resolution have been equal to the crisis, regardless of
hostile distortion of our words, motives and actions. . . .

The occasion has come for us to manifest again our
national unity in support of freedom and to show our
deep respect for the rights and Independence of every
nation — however great, however small. We seek not
violence, but peace. To this purpose we must now de-
vote our energies, our determination, ourselves.

Ambassador James Richards is cuiTently on
what has been to this point a highly successful
tour of the Middle East, explaining this doctrine
and discussing aspects of it with leaders of each
government.^ His trip alone has served as strong
evidence of the interest of the United St<ates in
the area and has given strength to those who share
with us concern at the inroads of international
communism.

No one of these aspects of our policy represents
the total policy. Our total policy has a basic
objective of supporting the independence and ter-
ritorial integrity of the nations in the region in
order that they may develop internally, stand
strong in the face of threatened aggression, and
cooperate with us on the basis of equality and
respect. We believe such nations provide the key
to peace.

" Ibid., Dec. 10, 1956, p. 918.

* For text, see ibid.. Mar. 25, 1957, p. 481.

• Ibid., Jan. 21, 1957, p. 83.

' For a Department announcement of an interim report
on Ambassador Richards' mission to the Middle East,
together with texts of joint commimiiiues issued follow-
ing his visits in eight countries, see ibid.. May 6, 1957,
p. 724. For texts of subsequent joint communiques, see
p. 763.

758

Departmenf of State Bulletin

Iran: An Appreciation

hy Selden Chapin
Ambassador to Iran '

Several years ago the British magazine Punch
published an acid little cartoon that I have since
found occasion to recall from time to time. The
cartoon depicted two old soldiers sitting morosely
in their club reading the London Ti7n.es. One of
them was saying, "I see that the Americans have
taken umbrage," to which his companion replied,
"Gad, Sir! Wliere's that?"

I suppose these fine, fierce old gentlemen as-
sumed that the sun was setting on another outpost
of empire. It may even be that they thought
"Umbrage" the ancient name for Iran.

I hasten to say that, as far as I know, it is not,
nor has the United States made any effort to
"take" Iran. The cartoon does, however, state a
common misconception, and I mention it for that
reason.

Not only in London clubrooms but in Asian
villages a certain number of people appear to be-
lieve that one of the objectives of United States
foreign policy is to substitute American for Euro-
pean influence throughout the world. In the case
of Iran I think that this misconception, which at
one time enjoyed great currency, particularly
among intellectuals, is steadily vanishing. The
happy day may eventually arrive when United
States foreign policy will be regarded on its merits
and not as a substitute for something else.

There are good reasons, I think, for Iran's grow-
ing awareness of the purpose behind our policies.
One of the most apparent reasons is that Iran-
American cooperation has produced tangible bene-
fits to both countries and has strengthened, not
weakened, Iranian sovereignty. Some of these

'Address made before the Foreign Affairs Council at
New York, N. Y., on Apr. 24.

May 13, 1957

mutual, benefits I shall refer to presently in more
detail.

History of Iran

Another reason grows out of Iran's long and
eventful history. After the brilliant and creative
years of the great Persian dynasties, years of
enormous religious, military, and cultural achieve-
ment, there came a long period of decline in Per-
sian influence. After the fall of the Safavid
dynasty in the 18th century this decline was
rapidly accelerated. As Persian authority dimin-
ished abroad, foreign authority increased at home.
Ottoman Turkish influence, which had been domi-
nant during the Safavid period, came into conflict
with the interests of the European powers, who
were anxious to contain the imperial growth of
the Ottoman Turks. By the time of the Napole-
onic Wars Persia found itself under varying de-
grees of pressure from the French, the English,
the Russians, and the Germans. It was a precari-
ous position that was to endure for many years.

Napoleon conceived of the Persians as a useful
ally against Russia and in his long-planned march
to India. Accordingly, he engaged in extensive
correspondence with the Persian ruler, Fath Ali
Shah, and in 1807 a treaty was concluded between
France and Persia under the terms of which Na-
poleon agreed to furnish military equipment and
instruction to the Persians. William S. Haas in
his book, Iran, published in 1946 by Columbia
University, quotes a characteristic excerpt from
the Shah's correspondence with Napoleon :

Every word in the noble lines is like a drop of amber
on pure camphor or like the perfumed curls on the rosy
cheeks of a beloved with a bosom of lilies ... the amber

759

scent of the gracious document has embalmed the alcove
of our souls so susceptible to friendship and has per-
fumed with musk the secret chamber of our hearts filled
with justice and loyalty.

Be that as it may, Mr. Haas notes that the
Franco- Persian alliance came to nought. Napo-
leon was within a decade of Waterloo, and Persia
was to continue for more than a hundred years
seeking a balance between opposing forces.

The Persians are a subtle and intelligent people,
and there is no more striking testimony to this
fact than Persia's traditional skill in effecting a
balance of power among stronger states. But the
game has its drawbacks, however skillfully
played. The slightest dislocation in the balance
can bring disaster. Ancient Persia suffered in-
vasion from Alexander, the Arabs, Genghis Khan,
and Tamerlane. Modern Iran was a battlefield
for British, Russian, and Turkish troops in World
War I and suffered occupation in World War II.
The cost to the Iranian people in terms of their
national pride has been excessive and goes far to
explain Iran's national personality today.

The playwright, George S. Kaufman, is credited
with remarking, "One man's Mede is another
man's Persian." The Iranians are, of course, the
descendants of both. Persian history has been
made not only by warriors but also by poets,
scientists, and philosophers. Nowhere in the
world is intellectual and artistic achievement more
honored than in Iran. There is a graceful charm
that seems characteristic of the Iranian tempera-
ment. I have also heard it called poetic or mys-
tic. In any event it sharply distinguishes the
Iranians from their practical and hardheaded
neighbors, the Turlcs, and from the brooding
melancholy of their other near-neighbors, the Rus-
sians. Iranians are quick-witted, warm, and some-
what skeptical. The hard times that Iran has
experienced, the long period of eclipse, have
caused some Iranians to cling to past glories rather
than face an uncertain future.

The present Shah's father, Reza Shah, sought
to modernize Iran in much the same way that
Kemal Ataturk reshaped the character of Turkey.
That Reza Shah was somewhat less successful
may only mean that his task was more formidable.
His son, Reza Shah Pahlevi, who has succeeded his
father in this challenging task, may yet bring
changes to Iran of a more permanent and construc-
tive nature.

New Concept of Foreign Policy

All of this will require time, dedication, and
infinite wisdom. National assiunptions, once
established, are as durable as crab grass and just
as hard to uproot. But as nations grow and pass
from one phase to another, the mentality of the
people must change with the times. The United
States has seen many of its own assumptions mod-
ified in the past decade. Our years of splendid
isolation are gone beyond recall, and we have been
forced to assume responsibilities abroad that we
never sought. The choice for Iran is no less diffi-
cult. Having survived so long by the judicious
arrangement of countervailing alliances, it has re-
quii'ed real courage for Iran to abandon the tra-
ditional assumptions of Persian diplomacy and
take a fortlmght stand with the free world.

Iran's membership in the Baghdad Pact is
tangible evidence that a new concept of Iranian
foreign policy is emerging. It is, I believe, a
wiser and more realistic concept than the old one.
It promises greater benefits to Iran and to the
Iranian people. But we should recognize that
Iran's decision has not been an easy one. In the
difficult years that lie ahead the United States
will doubtless find both tlie need and the oppor-
tunity to assure Iran of the wisdom of its new
course.

In significant respects we have already done so.
Since 1949 the United States has extended
approximately $280 million worth of economic,
teclmical, and military assistance. But I mean
something more than our aid programs,
important though they are. I mean that the
United States hits shown that it respects Iran's
sovereign independence and expects others to do
so. Furthermore, we have supported Iran's sov-
ereignty abroad without challenging it at home.
Iranians are understandably sensitive to implica-
tions of interference in their internal affairs. It
is a sensitivity born of unliappy experience.
Iranians appreciate our economic aid and the sup-
port that we have given them in international af-
faire, but I think thej' respect equally the fact
that we have not sought political concessions in
exchange for our aid. This, it seems to me, pro-
vides the best assurance that our interest in Iran
will continue to bo understood and trusted by the
IraniaJi people.

Our concern for Iran since the war was fore-

760

Department of State Bulletin

shadowed in the Tehran Dechiration of 1943,
signed by Roosevelt, Churchill, and Stalin at the
conclusion of the Tehran Big Tlu-ee Conference.
In that document the three powers made the fol-
lowing pledge :

With respect to the post-war jieriod, the Governments
of the United States, the U.S.S.K., and the United King-
dom are in accord with the Government of Iran that any
economic problem confronting Iran at the close of hos-
tilities should receive full consideration, along with those
of other members of the United Nationsi, by conferences
or international agencies held or created to deal with
international economic matters.

The Tehran Declaration added that the three
powers were "at one with the Government of Iran
in their desire for the maintenance of the inde-
pendence, sovereignty and territorial integrity of
Iran."

We know that within little more than 2 years
the Soviet Union had already broken its pledge
by refusing to evacuate Soviet military forces
from the northern provinces of Iran. The Azer-
baijan crisis of the winter of 1945-46, in which the
United States strongly supported Iran's com-
plaint to the Security Coimcil, put the United
Nations to its first important test. The eventual
withdrawal of Soviet forces was a victory not only
for Iran but for the U.N.

The Oil Crisis

The ensuing period was not, however, a stable
one. Intense feelings of Iranian nationalism were
seeking release. They foimd it, in March 1951,
in the nationalization of Iranian oil. I shall not
retrace the tangled course of the oil problem.
Those were somber days for Iran and its friends.
The singular figure of Dr. [Mohanxmad] Mosadeq
dominated the news from Iran, and in January
1952 Time magazine selected him Man of the Year
over the caption, "He greased the wheels of chaos."
Iranian oil production came to a virtual standstill,
diplomatic relations with Britain were broken,
and conditions witliin Iran steadily deteriorated.

The Soviet Union, whose predatory ambitions
had been rebuffed in 1946, sought to make the
most of Iran's problems. The Communist Tudeh
Party, which had been outlawed in Iran in 1949,
increased its strength and organization. Clev-
erly, international commiuiism remained in the
background at first, pushing forward the more

extreme left-wing, which proceeded, step by step,
to elunmate the influence of consti-uctive Iranian
nationalists.

By the spring of 1951 it had become clear that,
if Iran was to be saved from foreign Communist
domination, urgent assistance would have to be
given. The United States strengthened its mili-
tary and gendarmerie assistance and training mis-
sions, which had already been operating in Iran
for several years, and allocated special economic
and technical aid to help the Iranians stave off
collapse. It was apparent, however, that no last-
ing solution of Iran's economic problems would
be possible without a settlement of the oil prob-
lem. American diplomacy concentrated its efforts
toward that end. It was during this period that
Secretary Dulles appointed Herbert Hoover, Jr.,
as his Special Assistant to work on the oil prob-
lem. The efforts of Mr. Hoover and Loy Hender-
son, then American Ambassador in Tehran, were
vitally important to the final settlement of the
dispute.

Meanwhile Communist pressure on Dr. Mosadeq
was intensified. The Communists and extreme na-
tionalists were determined to obstruct a fair set-
tlement. In March 1953, after a series of arduous
and complicated negotiations between the Iranian
Government and our Embassy, the Mosadeq gov-
ernment, under pressure from the extremists, re-
jected proposals which were of a most reasonable
nature. Clearly the Mosadeq government was un-
willing or unable to accept equitable terms for a
settlement. Iran's political situation was bad.
The economic situation was growing worse. Dr.
Mosadeq had to obtain foreign budgetary aid or
face national bankruptcy.

In May 1953 he sent a letter to President Eisen-
hower in which he intimated that, if the United
States could not give Iran budgetary aid at once,
Iran might be compelled to turn elsewhere, pre-
sumably to the Soviet Union. The President in
his reply indicated that, so long as Iran was not
prepared to do its utmost to exploit its own natural
resources, it could not expect budgetary aid from
the United States.^

Events rapidly approached a climax. Iran was
at the crossroads. It must either find a solution

- For text of the exchange of letters, see BuLLErriN of
July 20, 1953, p. 74.

May T3, 1957

761

to the oil problem or risk total collapse. The
Shah moved to dismiss Dr. Mosadeq, but the ex-
treme nationalists, spurred on by the Communists,
openly defied the Shah. In the hot days of mid-
August 1953, the showdown occurred. The
Shah's supporters rallied to unseat the extremists.
A new government under General [Fazlollah]
Zahedi was installed and promptly set to work re-
pairing the damage of the previous 2 years. The
United States, in response to an urgent plea from
the Prime Minister, extended $45 million in
emergency aid to Iran in September 1953 to assist
the Zahedi government through its immediate
difficulties.^

A year later, in August 1954, an agreement was
signed between the Iranian Government and an
international consortium, initially formed by
eight oil companies, which restored the flow of
Iran's oil to world markets and the flow of oil
revenues to the Iranian treasury.* The United
States was instrumental in bringing this agree-
ment about, and it has proved a profitable one for
Iran. Just how profitable may be inferred from
the fact that Iran's share of oil revenues last year
approximately tripled the amount received by
Iran during its best year under the old agreement.

There are two conclusions that I would like to
draw from this summary of Iran's postwar prob-
lems and the solutions eventually achieved. The
first is that the oil settlement provides a striking
example of the ability of the United States to
bridge differences between our traditional allies
in Europe and the emerging nations of Asia. In
the negotiations between the consortium and Iran
we sought neither to supplant the British nor to
stand aloof. Instead we agreed to share with the
interested parties the responsibility for reaching
an equitable agreement. The present composi-
tion of the consortium reflects this fact, 40 percent
of the shares being British, 40 percent American,
15 percent Dutch, and 5 percent French. Our
willingness to assume a fair share of the responsi-
bility— and the risk — in reaching accommodations
between the European powers and Iran is, in my
view, the key to our role there and distinguishes it
from that of a mere go-between or broker. United

I

'Ihid., Sept. 14, 1053, p. 34!).

' For messages and statements concerning this agree-
ment, see ibid., Aug. 16, 1954, p. 230.

States influence in the oil negotiations became de-
cisive only as the United States became ready to
commit its prestige to a settlement. The result
was a settlement that serves the legitimate inter-
ests both of Iran and the consortium members.

The Role of the Soviet Union

My second conclusion relates to the role of the
Soviet Union, whose relations with Iran could al-
most be said to constitute a laboratory sample of
Soviet foreign policy in the postwar period. In
one of Evelyn Waugh's novels, a satire on the
newspaper business called Scoop, a young foreign
correspondent is ushered into the austere pres-
ence of his employer, the publisher of an aggres-
sively conservative newspaj^er called Tfie Beast.
The young man is anxious to know the paper's
foreign policy. The publisher, with a growl, in-
forms him that, '"'■The Beast stands for strong, mu-
tually antagonistic governments everywhere."

The Soviet Union, I should say, stands for J
weak, mutually antagonistic governments every- "
where, and nowhere are they more interested in
weak governments than in neighboring countries
like Iran. Moscow has employed a wide variety
of tactics to weaken Iran, ranging from outright
occupation of Iranian territory in Azerbaijan to
organized subversion through the Tudeh Party.
Soviet spokesmen tried to threaten the Iranians
when Iran joined the Baghdad Pact and to flatter
them when the Shah visited Moscow.

By this time I think that the Iranians are well
conditioned to these sudden fluctuations in the
Soviet barometer. The Shah has provided espe-
cially effective leadership in developing and main-
taining a realistic Iranian policy toward the
Soviet Union. He has consistently affirmed that
Iran has no aggressive intentions toward the
Soviets while making clear that Iran will not per-
mit itself to be pushed around by the Russians.
The Shah's trip to the Soviet Union last fall is a
case in point. Some observers believed that the
trip would prove to be a mistake and that the
Soviets w'ould embaiTass or compromise the Shah
during his visit. They were wrong. Tlie Shah
handled his trip with great skill and dignity. He
demonstrated that leaders of tlie free world need
not travel to Moscow witli hat in luind, paying
hypocritical compliments to Caspian caviar and
the Moscow subway.

762

liepat\msn\ of State Bulletin

U.S. Support for Iran

I have said that the United States during the
oil controversy provided a bridge between the in-
terests of Europe and Iran. What can we do to as-
sist Iran is resisting Soviet pressure ? The answer
is threefold. In the first place, we can continue
to give Iran strong support, both public and pri-
vate, against this overt foreign pressure. Our
most recent enunciation of such support has, of
course, been through the Eisenhower Doctrine.
In the second place, we can continue to assist Iran
in strengthening its own internal position against
organized Commimist subversion. The United
States military and gendarmerie assistance mis-
sions, working in close cooperation with the Iran-
ian authorities, are doing an effective job in this
field. In the tliird place, we can help the Iran-
ians achieve steady economic and social progress
so that basic grievances which the Communists
seek to exploit will be eradicated once and for all.
In this area our progi-aras of economic and tech-
nical assistance have made important contribu-
tions.

I would emphasize that these three types of
assistance are only effective when they are truly
cooperative and when they supplement the efforts
of the Iranians themselves. The United States
has no wish to do for Iran what that country can
do better for itself. The resources of Iran are
great, and I mean not only natural resources like
oil but also human resources, the intellectual fiber
and aptitude of the Iranian people and the fore-
sight of their leaders. The Shah and his recent
Prime Minister, Mr. Hosein Ala, are well and fa-
vorably known in the United States. I am confi-
dent that the new Prime Minister, Dr. Manu-
chehr Eqbal, who visited this country a year ago
and who is a vigorous and forceful personality,
will add gi-eatly to the record of constructive
achievement of the past 3 years.

There is a Persian proverb that says, "The
stream of renovation flows quickly toward the
East." In my remarks to you this evening I have
tried to show how swiftly the stream of renovation
is beginning to flow through Iran. Out of the
long and intricate Persian past, new concepts and
new assumptions are emerging. Iran is in process
of creating nothing less than a new national tra-
dition. Not only Iran's progi-ess, but its very sur-
vival, depends on the firm establishment of that
tradition, which Iran's northern neighbor, the

Soviet Union, is determined to frustrate. The
United States, for its part, intends to assist the
Iranian people in realizing their goal of imassail-
able independence and prosperity. We are doing
so by extending Iran both diplomatic and material
support. The results of our close friendship and
cooperation are highly encouraging and should be
a source of satisfaction, though not complacency,
for both Iran and the United States. Iran's fu-
ture promises great achievements which may yet
surpass the events and discoveries of a brilliant
past.

Ambassador Richards' Mission
to the Middle East

Following is a press statement issued at the con-
clitsion of Amhassador James P. Richards'' visit to
Yemen, together with the texts of the joint com>-
rmm,iques issued following his visits to Ethiopia
and the Svdan.^

Press statement, Sana'a, Yemen, April 15

Press release 235: dated April 23

I have just completed a very useful and inter-
esting 4-day [April 11-15] visit to Yemen, during
which I held talks with the Imam, the Crown
Prince, and other Yemeni oiBcials.

My talks were held in a friendly spirit which I
believe rasulted in increased vmderstanding of
President Eisenhower's policy for the Middle
East. The talks, I believe, will promote even
closer relations between Yemen and the United
States in the future.

My visit did not result in the initiation of an
aid program for Yemen. I am, however, recom-
mending that further discussions toward this end
should be held at the appropriate time.

Ethiopia Joint Communique

Addis Ababa, Ethiopia

April 18, 1957

Press release 236 dated AprU 23

At the invitation of His Imperial Majesty's
Government, Ambassador James P. Richards,

' For an announcement of an interim report on Am-
bassador Richards' mission to the Middle East, together
with texts of joint communiques and press statements
issued prior to the visits to Ethiopia, the Sudan, and
Yemen, see Bulletin of May 6, 1957, p. 724.

May 13, 1957

763

Special Kepresentative of the President of the
United States, visited Addis Ababa from the 15th
to the 18th of April, 1957. In the course of
audiences granted by His Imperial Majesty, cor-
dial and useful talks were had in regard to mat-
ters of common interest. Discussions were, sub-
sequently, pursued with the Minister for Foreign
Affairs.

Ambassador Eichards explained the new pol-
icy of the United States toward the general area of
the Middle East. He stated the conviction of the
American Govermnent that the peoples of the
Middle Eastern area and the people of America
have a common interest in their joint efforts to
preserve liberty and freedom tlirough the mainte-
nance of security against international com-
munism.

Ambassador Richards emphasized that it is the
policy of the President of the United States and
the American Government, if necessary and if re-
quested, to use the armed forces of the United
States to help any nation in the area that may be
subjected to armed attacks by a country under
the control of international communism.

Ambassador Richards made it clear that the
United States Middle East policy does not seek
to establish any sphere of influence or fill any
power vacuum in tlie region, nor does it aim at
securing military bases. The policy is solely de-
signed to strengthen the nations of the area so
that they can maintam their independence and
territorial integrity.

The Ethiopian Government explained in full
to Ambassador Richards its policies in regard to
the problems discussed and gave its cordial sup-
port to the American doctrine, stressing the im-
portance of close collaboration between the coun-
tries of the general area of the Middle East. In
behalf of the President of the United States,
Ambassador Richards welcomed the recognition
of the continuing common interest in resisting the
threat of international cominumsm and the estab-
lishment of tlieir understandmg of tlie broad iden-
tity of interests existing between the two
coimtries.

There was complete agreement on tlie opposi-

tion of both governments to aggi-ession from any
source and their determination to use all legiti-
mate means to prevent it.

Tlae discussions further demonstrated that the
Governments of Ethiopia and the United States
are anxious to work together to the end that the
following principles shall prevail in international
relations :

1. Respect for the sovereign equality of all na-
tions under the charter of the United Nations ;

2. Protection of the right of all nations to choose
their own form of government without interfer-
ence;

3. Nonintervention and noninterference in the
internal affairs of one state by anotlier;

4. Recognition of the interdependence of na-
tions and the obligation of nations to respect the
just rights and interests of other states.

The Etliiopian Government discussed with Am-
bassador Richards the possibilities of economic
and military assistance under the American doc-
trine. He has agreed to provide certain assist-
ance in both fields. This will be in addition to
otlier assistance previously agreed upon.

Sudan Joint Communique

Khartoum, Sudan

April 22, 1957

Press release 233 dated AprU 22

On the invitation of the Govermnent of the Re-
public of the Sudan, Ambassador James P. Rich-
ards, Special Representative of the President of
the United States, visited Kliartoum from April
20 to 22.

In friendly discussions with the Prune Minister,
the Minister of Foreign Affairs, and other rep-
resentatives of the Sudan Cabinet, he explained
the character and purposes of United States policy
toward the Middle East as recently set forth by
President Eiscnliower and exchanged views re-
garding this policy. The Sudan Government wel-
comed the clarification provided by Ambassador
Richards, and it was agi-eed tliat the matter would
be given f mtlier study.

I

764

Deparimeni of Sfofe BuWelln

Secretary Dulles' News Conference of April 23

Press release 237 dated April 23

Secretary Duller: I will be glad to hear
questions.

Q. Mr. Secretary, does the United States have
any plans to report on the Suez Canal negotiations
to the Security CowncU perhaps this week? And
could you tell us what, if any, progress you believe
has been mad^ in the lengthy talks that Ambas-
sador Hare ha^ been having with the Egyptian
Govemmentf

A. TTe have been having discussions with the
Egyptian Government, at its invitation, about the
regime which will apply to the operation of the
Suez Canal. Those have been going on for about
a month. And, also, during this same period the
Secretary-General of the United Nations has been
having talks on the same topic. Xow that the
canal is generally open for traffic, it seems to us
that there should be more general public knowl-
edge. In view of the fact that last October the
Security Coimcil laid down what it calls six
principles' or requirements, and in view of the
fact that the Security Council remains seized of
the matter, as a result of the proposal which I
then made, it does seem to us appropriate that
there should be an early report made to the Se-
curity Council and perhaps through the Security
Council to the world.

You asked a second question, I think, as to what
progress has been made. That question I cannot
answer because we do not yet know what the final
decisions of the Egyptian Government will be
with respect to certain aspects of this matter and
what the declaration of the Egyptian Government,
when made, will contain.' I don't know at the
present time; therefore, I can't appraise the re-
sult.

Q. Mr. Secretary, do you expect that this an-

■ For text, see Buixetts of Oct 22, 19.56. p. 616.
' For text of Egyptian declaration transmitted to the
U.X. Secretary-General on Apr. 24, see p. 776.

nouTicemeTit wiU be made from Cairo within JfS
hours, which is one report this morning?

A. I have no official information to guide me in
that respect at alL

Q. Does the plan, as you understand it, now em^
brace any or all of the six operating jfrirvciples
approved by the Security Cowncil in October?

A. As I say, I can't answer those questions, be-
cause, while we have had a rather full exchange of
views with the Egyptian Government on these
matters, we do not yet know, and wUl not know
until the declaration is made, to what extent our
point of view will be taken account of.

Q. Do you expect to take the issue to the Secu-
rity Council tomorroxD or Thursday perhaps?

A. Possibly, although we are waiting on ad-
vices from Ambassador Hare. And I wouldn't
like to use the word "issue" — it is merely keeping
the Security CovmcU informed.

Q. Mr. Secretory, does that mean that no action
will be sought in the Security Council and that it
wiU be merely a report to the Secwrity Council?

A. That's my thought as to the way it would
probably be handled. Of course, I can't assume
the responsibility for what other countries may do.
But I would not think it was appropriate at this
time to take the matter to the Council in a contro-
versial way.

Q. In the meantime, Mr. Secretary, do we have
any objection's if American ships go through the
canal? The reason I ask is that one ship is re-
ported approaching the canal and wiU be in a posi-
tion to start its voyage through by Thursday.

A. Xo, we have no objection. Our position in
the matter remains as it was announced, I think,
some 10 days or 2 weeks ago, where we made a dec-
laration. I think, or statement of advice, to the
shipping companies, which I think referred to the
use of prudence because of the certain difficulties

May 73, 7957

765

that still existed. We have not changed that
guidance. Of course, you will recall that they are
under instructions to pay the Egyptian authority
only under protest because of the fact that there
may be conflicting claims made by the old Uni-
versal Suez Canal Company.

Q. Would they he exercising frudence now if
they went through the canal? {Laughter)

A. Well, I don't know. I think that is a judg-
ment that each shipowner, shipmaster, or owner
of the company, will have to decide for himself —
how prudent it is. One of the dangers that we
foresaw at that time was the danger that there
might still be obstructions to navigation. I as-
sume that that danger is somewhat diminished
by the fact that a good deal of traffic has already
gone through without any mitoward incidents.
But that does not necessarily pi'ove that the dan-
ger is entirely over.

Q. Mr. Secretary, if Egypt rejects the U.N. six
points, which th^y originally agreed to, tohat is
the next move from our vieiopoint?

A. Well, I prefer not to engage in speculation
on that point, because we do not know tO' what
extent, if at all, the Egyptian declaration will re-
ject the six principles.

U.S. Views on Liberation of Satellites

Q. Mr. Secretary, presumahly the subject of
liberation of the satellites strikes the Soviets at
one of their rawest nerves, yet you chose to add
new point to the suiject yesterday. Could you
tell us the significance of this timing? Does this
mean that something has heen going on within the
Soviet Union that makes the Russians sensitive
to outside pressure of this kind?

A. We have constantly emphasized our view
about the liberation of the satellites for a long
time, ajid in any general review of our basic for-
eign policy considerations I think tliat would have
to be included. You may recall that we have
never, out of deference to Soviet feelings, hidden
our views about that subject. President Eisen-
hower brought it up at the Siunmit Conference.
Tliat was a conference which was supposed to lead
to the improvement of our relations. But we
made it perfectly clear there — President Eisen-
hower made it clear — that freedom of these cap-

tive nations was in our opinion essential, both
from the standpoint of better relations between
our two countries and from the standpoint of
peace. And that theme has been repeated again
and again. I don't tlunk the President has made
any major speech on foreign policy since then
when he hasn't brought the subject up. And, in-
deed, to make a review of our basic policy con-
siderations and not to bring that up would itself
be a significant step backward.

Q. Mr. Secretary, there seems to he a feeling
in Moscow that the climate is more favorable now
for another East-West conference, possibly at the
diplomatic level. What would your feelings he
on that line?

A. Well, I think a good deal depends upon
what the Soviets themselves are prepared to do
in relation to such matters as disarmament, the
treatment of the satellites, the reunification of
Germany. I don't know what is in their minds.
If they are prepared to move forward along these
fronts, we would welcome that very much; but
if the only purpose is to seek an opportunity for
a new propaganda drive, then we wouldn't be very
enthusiastic about it.

Q. Mr. Secretary, at the Bermuda conference,
Mr. Maemillan presented a m.emorandum on the
British position on the U.S. wool import tariff
quota. Is the State Department going to take
any action on this, such as favoring a lighter quota
in the trade agreements com/mittee?

A. Well, he may have presented a memorandum
on tlie subject, but it escapes my notice. That
doesn't mean that he didn't do it, or that it is
not important, but I just don't remember about
it at the moment.

Q. Mr. Secretary, in connection with the Jap-
anese Prime Minister's forthcoming visit to this
country, there has heen a reneioed agitation in
Japan for the return of Okinawa and the other
Ryukyus to Japan. You have told us hefore that
this could not he done until there teas no tension
in the Far East. Is the U.S. position still the
same?

A. Yes. We agi-eed with the Japanese at the
time that those positions were important to be
held until there was an assurance of stability and
peace ju the Far East, in the Pacific area. I do

766

Department of State Bulletin

not think that it can be said that there has been
any such change in that sense as would justify
a reconsideration of that matter at the present
time. Now, as you know, we have never ourselves
sought to acquire the ultimate sovereignty of those
islands. That remains with Japan, and we do
not look upon this arrangement as a permanent ar-
rangement. We do believe, and I think the Jap-
anese would agi'ee, that nothing should be done
there which would so weaken the defensive posture
of the free countries as would encourage an ag-
gressive move on the part of the Communists.

Disarmament Talks

Q. Mr. Secfeta/'i/, can you possibly., sir, expand
on the very brief description of our disarmament
talks in London as being the most serioiis nego-
tiations we have had to date.^ Does that mean
that there has been any breakthrough of any kind,
sir, or could you expand on it at all?

A. Well, they seemed to us to be the most serious
in the sense that the Soviet representatives had
indulged less in public propaganda in connection
with these discussions and have had more talks
of a quiet, sober character, which have not been
pushed into print in some distorted way. We in-
fer from that that they may be more serious than
they have been heretofore. I indicated in my talk
yesterday * that we do look forward to possibly
moving ahead by careful steps, carefully chosen
and carefully safeguarded. I think a gi-eat deal
will depend upon the new instructions that their
representative, Mr. Zorin, brings back with him
from Moscow when he returns tomorrow for the
resumption of the talks in London.

Q. Mr. Secretary, in your speech yesterday you
said the world is divided into two parts, one
despotism and the other free, and that there is no
safe middle ground. Now, do you mean that there
can be no neutralism?

A. I think I said that it was divided between a
world of despotism and a world of nations which
were free because they accepted the implications of
interdependence. And I went on to point out that
I felt that a nation which rejected the implica-
tions of interdependence would not for long re-
main free, because only as the free nations help

' See p. 772.

♦ BULLETIN of May 6, 1957, p. 715.

each other in various ways, through collective de-
fense, through economic ties, and the like, do they
have the strength to resist the threat that comes
from international communism. I referred to the
fact that there had been a period when nations
pretty much stood alone, during which period the
Soviet Communists had stolen the independence
of no less than 12 other nations, and I do not think
that nations which try to stand absolutely alone
are safe. Now, I was not speaking of — I didn't
use the phrase — "neutralism" because, as I have
said before, "neutralism" is a word which has so
many connotations that it is extremely difficult
to use the word without being misunderstood in
one quarter or another. I think I used the phrase
"accepting the concept of interdependence," and
I think that that is perhaps a better way to put it.

Q. Is Governor Stassen going back to London
with new ideas or new instructions?

A. No. There has been no effort to provide new
instructions because we believe that the instruc-
tions which he has are already adequate to deal
with the situation insofar as it has develojjed to
date. There could be new developments which
would call for new instructions, but again we can-
not tell that until we know what the attitude is
of the Soviet representative when he returns.

Q. Are we waiting for Mr. Zorin to come back
with new ideas and new instructions?

A. Well, we are waiting to see whether the in-
structions which Mr. Stassen now has, and which
are quite comprehensive and quite flexible, are or
are not adequate to deal with the situation which
may be presented by Mr. Zorin.

Q. Mr. Secretary, xoould you give us your esti-
mate as to lohy the Soviet Government has chosen
this particular time to make public its correspond-
ence between Bulganin and Mr. Mollet — the pre-
October29th correspondence?

A. No, I can't say why they chose this time. I
would guess that they felt it would have perhaps
some useful propaganda effect in the Middle East.

Q. Mr. Secretary, there was an interview with
the new Prime Minister of Jordan today, in which
he stated that he did not want Ambassador Rich-
ards to visit the country at this particular time.
Has Mr. Richards received any instructions to that
effect?

May 13, 1957

767

A. No. "We are in daily communication with
Ambassador Eichards on the subject of the balance
of his progi-am, and no conclusions have been
reached at this time. Naturally, he is not going
to go to any country where he is not welcome.

Q. Mr. Secretary, folloioing up that question
just a little hit, the Goverrmient of Jordan seems
to he in imminent danger of falling under the more
direct influence of Cairo or Moscow, or hath.
Could you clarify your understanding of the situ-
ation for us? And do you think, getting hack to
the subject of interdependence, that it would help
or hinder the situation if they embraced the Eisen-
hower Doctrine now— meaning the Jordanians?

A. The Eisenhower Doctrine is perhaps nothing
that is sufficiently tangible to be "embraced," you
might say. (Laughter) It is an attitude, a point
of view, a state of mind. We have great con-
fidence in and regard for King Hussein, because
we really believe that he is striving to maintain
the independence of his country in the face of
very great difficulties and he does not want to see
Jordan fall under the domination of other coun-
tries which have indicated a desire to work con-
trary to what the King considers to be the best
interests of his country. It is our desire to hold
up the hands of King Hussein in these matters to
the extent that he thinks that we can be helpful.
He is the judge of that. I think perhaps that
covers the question adequately.'

Q. Mr. Secretary, in your speech yesterday you
made no mention whatever of Communist China.
Did you consider that Communist China was in-
cluded in your reference to the satellite countries.

° At a news conference at Augusta, G.i., on Apr. 24,
.Tames C. nagert.v. Press Secretary to the President, said
that he had been authorized to say that both the Presi-
dent and the Secretary of State regarded the independ-
ence and integrity of .Jordan as vital. On Apr. 25, Lin-
coln White, Acting Chief of the News Division, Depart-
ment of State, told news correspondents : "I can only
say with respect to Jordan that the statement issued in
Augusta yesterday afternoon represented a reminder to
the world by the President that a finding had been made
in the Joint Resolution of the Congress on the Middle
East that the preservation of the independence and in-
tegrity r)f the nations of the Middle East was vital to the
national interest of the United States and to world peace.
This reminder was appropriate because of the threat to
the independence and integrity of Jordan by international
communism as King Hussein himself stated."

or do you see another relationship between Mos-
cow and Peiping?

A. I doubt that Communist China is a satellite
country in the same sense, or the same degree, that
the Eastern European satellites are. I would say
that there is perhaps this difference : I think that
both the Soviet Union and Communist China are
under the domination of what might be called in-
ternational communism. I believe that the coun-
tries of Eastern Europe that we call the satellites
are, you might say, in addition under the domina-
tion of the Soviet Union as a state, and in that
respect there is perhaps a difference between the
two.

Question of Permitting Newsmen To Go to
Communist China

Q. Mr. Secretary, on that point the Associated
Press Board of Directors at a meeting yesterday
disagreed with the Governments policy of pre-
venting newsmen from visiting Red China, and
they said again that they believed that it is time
that qualified newsmen should be allowed to report
firsthand from the mainland of China. Now, the
last time we discussed this with you, you said the
whole question was vmder active consideration.
Could you tell us noto, sir, what the outlook is for
a possible change in this policy?

A. Both Under Secretary Herter and I have
been giving careful study to the problem of the
United States news reporters going to Communist
China.

The Department would be glad to have the
American public get information about Com-
munist China firsthand through United States
correspondents. On the other hand, we are not
willing to permit Americans generally to go into
Communist China, where the Trading With the
Enemy Act still applies and where Americans
already in Communist China are being held in
Chinese prisons as political hostages. The ques-
tion is whether we can have a passport policy
which will permit responsible news gathering and
at the same time not permit a general influ.x of
Americans into Communist China.

Suggestions have been made to the Department
that the newsgathering community itself come
up with a proposal for a strictly limited number
of responsible correspondents to go to Commu-
nist China on behalf of that newsgathering com-

768

Department of State Bulletin

mimity as a whole. We felt that such a selective
experiment could be made consistently with our
general policy.

We have had a considerable exchange of views
on this topic, but so far no proposal has been made
to us which would meet the newsgathering ob-
jective and not lead to a general breakdown of
restrictions deemed important in the nationaJ
interests.

We continue to be receptive to concrete sugges-
tions which the newsgathering community may
wish to put forward, and we also continue to
study the matter ourselves.

Q. Mr. Secretary, didnH you have a dual pol-
icy in the case of the Middle Ea^t when you had
the embargo on Israel, Syria, and Egypt? You
were allowing some newsmen to go in there, at
the same time forbidding the general public to
go in.

A. I'm not aware of the fact that we had such
a dual policy there, but you may be right. I
don't know.

Q. Well, assuming that Pm right — and I be-
lieve I am — would you then be willing to apply
that policy to Communist China, if it is in fact the
precedent?

A. Well, since you're asking me to compare
sometliing with what to me is the unknown, I'd
rather avoid getting into that.

Q. Mr. Secretary, on this same subject, the re-
ports and photographic coverages of the three
correspondents — the three American correspond-
ents— who did go into Communist China in de-
fiance— if that is the word — of State Department
restrictions have been widely disseminated in this
country. Do you feel that those reports and pic-
tures were an advantage to the Comm/unist regime
and a damage to us?

A. We do not think that any objective report-
ing will be of advantage to the Communist re-
gime or a disadvantage to us. I have tried to
make clear, but apparently don't succeed in doing
so, that our policy is not in any respect designed
to cut off a flow of news about what conditions
are, what the facts are, within Communist China.
It is a question of whether or not it is appropriate
at this time to break down a barrier against Amer-
icans generally going into Communist China at

May 13, 1957

425088— 57 3

a time when we are in a sense still in a state of war,
at a time when Americans are subject to gross
mistreatment already in Communist China, at a
time when Communist China is seeking desper-
ately to build up a pattern of so-called cultural
exchanges with the Western countries, which it
thinks will enable it to increase its hold over some
of the countries of the Far East.

Now, that is the problem. It is not a problem
of our being worried in any respect about what
the facts are. The more the American people
know the facts about Communist China, the bet-
ter pleased we are.

Q. Mr. Secretary, is there pressure coming into
the State Department from other groups besides
newspaper organizations to go to Communist
China?

A. Not at the moment, but I think it is a fact,
and indeed it is conceded to be the fact by the
leading figures in the newspaper world with whom
we talk, that probably the granting of some pass-
ports in that respect will lead to demand for
others and those in turn for others. We asked
them whether they felt that they could get an
agreement, let us say, within tlie newsgathering
fraternity, that a certain number of people would
go on sort of a pool basis on behalf of them all.
After an inquiry and study they came back — al-
though they made that suggestion themselves orig-
inally— and reported they did not think it would
be practical to do that.

Q. Sir, I was speaking of other than news-
gathering organisations.

A. Well, you see, you don't have a very clear-
cut line between newsgathering and other organi-
zations. You have got all sorts of things. You
have got pictures, you have got study of culture,
you have got the study of medicine, you have got
the study of all sorts of things that are going on in
there, and I don't think — and nobody else has been
able to suggest it to me — a clear-cut line that can
be drawn. If somebody will come up with a sug-
gestion as to how to draw a clear-cut line so that
we can say those who fall on one side of the line
can get passports and those on the other side of the
line can't, we will be really glad to consider that.
We hoped the news people would themselves be
able to come up with a suggestion. So far they
are bankrupt of any such idea, as we are.

769

Q. Mr. Secretary, on that point, you said in
your earlier answer that you felt such a selected
experiment could he made.

A. Yes.

Q. Is that still yov/r view, sir?

A. Yes, sir.

Q. Mr. Secretary, this weekend Senator Javits
made public an exchange of letters with the De-
partment concerning the continued discrimination
against United States soldiers of Jewish faith on
our airhase in Dhahran. In a letter replying to
the State Dcpai'tmenfs explanation of its position
regarding this matter, Javits said, "/ do not get the
impression from the Department's letter that there
will ie a determined and continuous effort to undo
the injustices which I have described above tuith
clear notice to the Government of Saudi Arabia
that the actions set forth above are not tolerable
within the friendship that is professed towards
the United States on the part of Saudi Arabia arid
cannot be continued indefinitely.'''' Could you tell
M*, sir, what efforts are being made to stop the dis-
criminatory practices against American citizens,
and will these efforts be continued until the prac-
tices are, in fact, stopped?

A. Well, that is a long question. I'm not sure,
if you want to make questions as long as that, but
what I ought to get some advance notice and per-
haps have them in writing.

Q. I will try to do that.

A. But I will say this. The arrangement which
we have, which covers the Dhahran airhase and
the like, was originally made as a 10-year arrange-
ment, subject to termination or renewal at the end
of 5 years. Now, what has happened is that it has
been renewed for a second 5-year period on the
same terms that were originally laid down. We
brought up the matter you alluded to during
the talks that took place when King Saud was
here. I did not find his attitude at that moment
very receptive, largely perhaps, or partly at least,
because of the fact that he felt that he had not
been given nondiscriminatory treatment himself
in the city of New York.

Q. Mr. Secretary, the President said recently on
a number of occasions that he appointed Mr. Scott
McLeod Ambassador to Ireland on your recom-

mendation. Sir, in view of the uproar that has
erupted in Ireland over this appointment, can you
tell us your view of Mr. McLeod's qualifications
for the job?

A. I'm not aware of any uproar in Ireland.

Q. From the Irish press.

A. In the Irish press ? I am not even aware of
that. I will say that Mr. McLeod, after 4 years
of service in the State Department, has, I think,
shown that he possesses the qualifications to be a
good ambassador. He has grown in stature and
understanding; his knowledge of world affairs is
very considerable. And I believe that he is well
qualified. Obviously such a belief rests upon my
personal judgment, but my personal judgment is
based upon very close contact with him during
this period and with his growing understanding of
problems. This leads me to believe that he will
be a good ambassador.

Q. Mr. Secretary, do you see any way that
nuclear tests in the world can be brought to a halt
outside of international disarmament? In other
words, can the two be separated — nuclear tests and
disarmament?

A. It would be, I think, rather difficult to sep-
arate them, though I wouldn't want to say in this
field that it is impossible. I realize that in this
field we are dealing with issues of such tremendous
gravity that there is perhaps no course of complete
safety, and that situations arise which require us
to balance the risks of one course as against an-
other. Therefore, I would not want to be as dog-
matic or seem to be open only to a theoretically
perfect and complete solution.

But one of the great difficulties, in this matter
as in so many others, is we are dealing with a na-
tion the government of which cannot be relied
upon to carry out its undertakings, and where
they could gain a very great advantage over us if
there is no control of nuclear weapons and if re-
search and development can go on perhaps seci'etly
and all of a sudden be made available for the use
of weapons under circumstances which might give
them a very considerable and sudden advantage
over ourselves. Those things have all to Ce
weighed and appraised against the risks of having
testing. At the moment, in the light of all the
scientific information we can get, it does not ap-
pear that any testing which is in prospect is likely

770

Department of State Bulletin

to have any appreciable effect upon the health
situation. Therefore, we are not disposed at the
moment to consider that the risks of continued
testing are sufficiently great so that we should take
great risks in another direction. But of course our
attitude toward these matters is always subject to
change in the light, perhaps, of further scientific
information than is now available.

Q. Mr. Secretary, a clanfying question on the
reforters to Communist China matter. Is this
experiment that you are willing to consider a one-
shot proposition, that is, reporters going there on
a pool basis, visiting Communist China and then
coming tack, or is this a permanent thing that
you icere teilling to authorize?

A. Well, I don't have a closed mind on that. I
thought of it primarily, in the first instance at
least, as a one-shot experiment to see how it would
work and what the reaction of other peoples would
be, whether it would lead to a very great demand
on the part of passports for others — in which case
we might have to discontinue it.

Q. Mr. Secretary, may I ask, do you or the
Government consider extending a similar invita-
tion to Communist newspapermen to visit Amenca
before the Government decides to agree to let
American newsmen go to the Communist regime?

A. We have no intention of inviting Communist
Chinese newspaper people to come to this country.
I don't know that that has been suggested to us.
But since any such passports would have to be
issued by a regime that we do not recognize as a
government, it would not be practical to give a
visa for such people who had credentials only
stemming from the Chinese Communist regime to
come to this country.

Q. Mr. Secretary, can you tell us if at any time
during the past 4 years you considered firing Scott
McLeod?

A. Well, there was a point at the very first days
of our administration when we did not always see
eye-to-eye about everything, but those days have
passed; and I really think that he has done an
extremely able job on important matters upon
which he has been engaged — the Refugee Act,
for example, and things of that sort — and I merely
repeat what I said before, that I have gained
very great confidence in his abUity and judgment,

his human understanding. I think he would be ■
a good ambassador.

Q. Mr. Secretary, Senator Mansfield of Mon-
tana has suggested the US/A have its budget cut
this year, but it also ought to go back umder the
State Department. What do you think of the two
halves of that proposal?

A. I hope those are not considered as two sides
of a cruel and unusual pimishment.

Q. Thank you, sir.

President of Viet-Nam
To Visit U.S.

The Department of State annomiced on April
25 (press release 247) that arrangements have
been completed for the arrival of Ngo Dinh Diem,
President of the Republic of Viet-Nam, who will
visit the United States at the invitation of Presi-
dent Eisenhower. President Diem and his party
will arrive at Washington on May 8 and will re-
main until May 12, when they will depart for
New York City.

U. S. Reaffirms Support
for Lao Government

Press release 239 dated AprU 24

The following is the text of a note delivered on
April 16, 1957, by the United States Government
to the Ambassador of the Kingdom of Laos in
Washington. Similar notes were deli/vered by
the Governments of the United Kingdom and
France to the Ambassadors of the Kingdom of
Laos in London and Paris.

In response to the request of the Royal Govern-
ment of Laos to the Governments of the United
Kingdom, France, and the United States for a
statement of their policy towards Laos, the
Government of the United States confirms its in-
terest in the peace, sovereignty, independence,
imity, and territorial integrity of the Kingdom of
Laos. The Government of the United States
therefore continues fully to support the principle
of the complete authority of the Royal Govern-
ment of Laos over all its territory. It maintains
the hope that a political settlement and the re-
unification of Laos will be effected in accordance
with the principles of the Geneva Agreements on

May 13, 1957

771

Laos of July 1954 and the Resolution of the In-
ternational Control Commission of January 7,
1956.

The Government of the United States regrets
that these objectives have so far been made im-
possible because the Pathet Lao forces, in spite of
these Agreements and of the Resolution of the
International Control Commission, have sought
to place extraneous conditions upon their accept-
ance of the authority of the Royal Government
and upon their reintegration into the national
community.' The Government of the United
States welcomes the firnmess with which the King-
dom of Laos has resisted this maneuver and is con-
fident that the Royal Government will continue
in its determination that the political future of
the Kingdom of Laos shall not be dictated by dis-
sident groups enjoying no constitutional status.

Briefing on Negotiations

of Disarmament Subcommittee

Following is the text of an agreed statement hy
Secretary Dulles and Harold E. Stassen, Special
Assistant to the President, which was read to news
correspondents on April 20 hy Assistant Secretary
Berding.

In a meeting presided over by Secretary of State
Dulles, Governor Stassen gave a briefing on the
progress of the Disarmament Subcommittee ses-
sion in London up to the time of the Easter recess.
It has been decided that advantage should be
taken of the Easter recess to discuss developments
here prior to the resumption of talks in London
on Wednesday [April 24].

Topics discussed included initial reduction of
armaments and manpower on a reciprocal basis;
arms inspection systems, both ground and air ; the
United States proposal for cutting off at a given
date fissionable production for weapons purposes ;

' In commenting upon the note in answer to querlea
from news correspondents, a Department spokesman on
Apr. 24 gave as examples of the Pathet Lao conditions
considered extraneous to the fundamental problem of re-
unification the following: (1) a neutrality involTlng the
exchange of diplomatic representatives with the Com-
munist bloc; (2) acceptance of economic and technical
assistance from the Communist bloc, particularly Com-
munist China; and (3) establishment of a coalition
government which would include the Communists.

and the exchange of lists of armaments and
blueprints.

It was thought that the negotiations thus far
conducted warranted a continuation of a serious
effort to reach an initial partial agreement for a
first step, if proper safeguards for inspection and
control are agreed to.

The meeting was attended by Admiral Strauss
and representatives of the State and Defense
Departments.

Reaffirmation of U.S. Policy
on Disarmament

Statement hy James C. Hagerty
Press Secretary to the President

White House press release dated April 23

The President received from Mr. Stassen a re-
view of the London talks. The President fol-
lowed these London discussions with interest. He
had arranged with the Secretary of State to have
Mr. Stassen come to Augusta to give him a per-
sonal report.

The President encouraged the United States
delegation to follow through thoroughly in the
resumed negotiations which will start again in
London on Wednesday [April 24] . I

The President reaffirmed that United States ■
policy is, as stated by the Secretary of State in
his speech of yesterday, that :

We consider that controls and reduction of arms are
possible, desirable, and, in the last reckoning, indispen-
sable. It is not essential that controls should encom-
pass everything at once. In fact, progress is likely to
come by steps carefully measured and carefully taken.

Mr. Stassen will return this morning to Wash-
ington to confer again with the Secretary of State
prior to leaving for London later this afternoon
from New York City.

Question of Trade Embargoes
Against Communist China

On April £0 the Department of State released
the following statement on the suhject of trade
embargoes against Cojnmunist China.

The United States has been repeatedly pressed
by some of its allies to relax controls on trade with
Communist China to the same level as those which
apply to trade with the Soviet bloc.

772

Department of State Bulletin

We have been and are unwilling to agree to any
relaxation which would result in an increased flow
of strategic goods to Communist China. At the
time of the Korean war, when the United Nations
forces were attacked by the Chinese Communists,
the United Nations established an embargo on
shipment of strategic goods to Communist China.
Communist China is still hostile, and controls have
continued.

Heretofore, our allies have agreed to multi-
lateral controls on trade with Communist China
considerably more severe than on trade with the
rest of the Commimist bloc.

In an effort to meet the views of its allies and at
the same time continue to maintain effective multi-
lateral trade controls, the United States has in-
formed the 14 nations which participate with it in
multilateral controls that it is prepared to discuss
certain modifications in the existing system.

The U.S. proposal was made to the embassies of
the 14 countries in Washington during the past
week.

Under this proposal certain items for peaceful
use which now are embargoed by the multilateral
control system for shipment to Communist China
would be removed from controls and would be
placed on the same basis as in the case of trade
with the European Soviet bloc. Certain other
items now embargoed to Communist China would
continue under embargo and would be transferred
to the European Soviet-bloc list but xinder a lesser
degree of control.

The proposal would also involve a tightening of
the "exceptions" procedure now in use.

It was emphasized to our allies that there is no
change in United States policy with respect to
trade with Communist China. The United States
will continue its unilateral embargo on all trade
with Communist China.

United States Supporting
Ciiile's Stabilization Effort

Statement by Lincoln White
Acting Chief, News Division ^

The United States has shown and continues to
show its deep interest in the success of Chile's
stabilization effort. It is lending substantial sup-
port to Chile in its courageous efforts to carry out

an enlightened policy designed to overcome the
ruinous inflation which has been plaguing that
country.

The U.S. Treasury is participating in a standby
stabilization credit of $75 million. In addition to
prior loans totaling $150 million, the Export-Im-
port Bank since the inception of the stabilization
program has made loans amounting to over $47
million for Chile's steel and nitrate industries.
The United States representative in the Interna-
tional Bank for Reconstruction and Development
has supported substantial credits granted by the
bank for Chile's economic development. The
bank is imderstood to be considering additional
credits.

Our agricultural sales program has made it pos-
sible for Chile's people to consume about $40 mil-
lion worth more of food and fibers than her limited
exchange resources would otherwise have permit-
ted. Important economic development projects
are being carried out with local currency proceeds
of these agricultural sales. Assuming that re-
quest for additional legislative authorization with
respect to agricultural products is granted, we
will then be in a position to consider additional
such sales without impairing legitimate trade in-
terests of other friendly nations.

Further progress along the road to economic
strength and well-being will, of course, depend
on the Chilean people's persistence in this great
endeavor. In their efforts they can count on con-
tmued sympathetic support on a sound and eco-
nomic basis from the United States, which is con-
fident that Chile will find a solution to its difficul-
ties consistent with its democratic traditions.

U.S.-Canadian Negotiations
On Potato Tariffs

Press release 192 dated AprU 5

The United States and Canada concluded ne-
gotiations on April 5 with respect to their trade-
agreement concessions on potatoes. Notice of the
intention of the United States to participate in
these negotiations was given on February 4, 1957.*

The renegotiations were undertaken because of
Canada's desire to adjust upward its tariff on
potatoes. The renegotiations, which took place in

' Made to correspondents on Apr. 12.
May 13, 1957

' For text, see Bulletin of Mar. 4, 1957, p. 360.

773

Washington, were authorized by the Contracting
Parties to the General Agreement on Tariffs and
Trade and were held under procedures provided
in the March 10, 1955, "Declaration on the Con-
tinued Application of Schedules."

Agreement was reached on the basis of an up-
ward modification of the Canadian concession on
potatoes, which was initially negotiated with the
United States in the general agreement, and a
partial withdrawal of concessions which the
United States had granted on potatoes in the
agreement. The United States supplies most of
Canada's imports of potatoes, and Canada is the
principal supplier of United States imported
potatoes.

As a result of the renegotiations, Canada intends
to include in schedule V to the general agreement
a modified concession providing a year-round duty
of 371/^ cents per 100 pounds on all imported
potatoes, with the exception that new potatoes will
be granted continued free entry during the period
January 1 to June 14, inclusive. This concession
replaces one which provided duty-free treatment
for all imports of potatoes except for the period
June 15 to July 31, inclusive, when the rate of
duty was 371^^ cents per 100 pounds.

The United States, as a result of the renegotia-
tions, will modify its concessions on potatoes in
part I of schedule XX to the general agreement
which were initially negotiated with Canada.
Under the trade-agreements legislation such modi-
fication in United States duties are given effect
through Presidential proclamation, which it is
anticipated will be issued in the near future.

The United States will decrease the existing
2.5-million-bushel tariff quota for seed potatoes
by 600,000 bushels and the existing 1-million-
bushel tariff quota for table-stock potatoes by
400,000 bushels. The most-favored-nation rate
will remain 371/2 cents per 100 pounds for imports
within the new tariff quotas of 1.9 million bushels
for seed potatoes and 600,000 bushels for table-
stock potatoes. There will be no change in the
existing escalator clause which provides that the
tariff quota in any year for table-stock potatoes
is increased by the amount that estimated United
States production is less than 350 million bushels.

Congressional Documents
Relating to Foreign Policy

85th Congress, 1st Session

Report on the Soviet Union, Poland and Czechoslovakia —
August 1956. Report of Senator Russell B. Long on a
study mission. October 29, 1956. .38 pp.

Report of the National Advisory Council on International
Monetary and Financial Problems. Letter from the
chairman transmitting a report on its activities during
the period January 1 to June 30, 1956, pursuant to
section 4 (b) (5) of the Bretton Woods Agreements
Act. H. Doc. 54, January 17, 1957. 73 pp.

Departments of State and Justice, the Judiciary, and
Related Agencies Appropriations for 1958 : Department
of State. Hearings before the Subcommittee of the
House Committee on Appropriations. January 29 to
March 12, 1957. 980 pp.

United States Defense Policies Since World War II. H.
Doc. 100, February 14, 1957. 87 pp.

Report on Audit of Saint Lawrence Seaway Development
Corporation for the Fiscal Year Ended June 30, 1956.
H. Doc. 95, February 18, 1957. 19 pp., map.

South America (Peru, Chile, Argentina, Uruguay, and
Brazil). Report on United States foreign assistance
programs prepared at the request of the Senate Special
Committee To Study the Foreign Aid Program by For-
mer Ambassador David K. E. Bruce (pursuant to S.
Res. 285, 84th Cong., and S. Res. 35, 85th Cong). Sur-
vey No. 3, March 19.57. 15 pp. [Committee print]

Emigration of Refugees and Escapees. Report of the
Senate Committee on the Judiciary made by its Sub-
committee To Investigate Problems Connected With the
Emigration of Refugees and Escapees pursuant to S.
Res. 168, 84th Cong., 2d Sess., as extended by S. Res. 84,
85th Cong. S. Rept. 129, March 4, 1957. 10 pp.

Amendment to the Anglo-American Financial Agreement
of 1945. H. Doc. Ill, March 6, 1957. 3 pp.

United States Contributions to International Organiza-
tions. Letter from the Secretary of State transmitting
the fifth report on the extent and disposition of United
States contributions to international organizations for
the fiscal year 1956, pursuant to Public Law 806, 81st
Congress. H. Doc. 112, March 6, 1957. 86 pp.

West Berlin Reactor. Hearing before the Joint Com-
mittee on Atomic Energy. March 6, 1957. 17 pp.

Amendment of Anglo-.\merican Financial Agreement.
Hearing before the Senate Committee on Banking and
Currency on S. J. Res. 72, to implement further the
act of July 15, 1946, by approving the signature by the
Secretary of the Treasury of an agreement amending
the Anglo-American Financial Agreement of December
6, 194.5. March 15, 1957. 28 pp.

Control and Reduction of Armaments. Disarmament and
Security in the Middle East. Staff Study No. 6, Sub-
committee on Disarmament of the Senate Committee
on Foreign Relations. March 17, 1957. 35 pp. [Com-
mittee print.]

Agreement between the United States of America and
the Republic of Austria Regarding Certain Austrian
Bonds. Message from the President transmitting the
agreement between the United States and the Republic
of Austria regarding certain bonds of Austrian issue
denominated in dollars, together with a related protocol,
both signed at Washington on November 21, 1956. S.
Exec. H, March 18, 1957. 64 pp.

774

Department of State Bulletin

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Security Council Resumes Consideration of Item on Suez Canal

Folloioing is a statement made hefore the Se-
curity Council on April 26 ly Ambassador Henry
Cabot Lodge, U.S. Representative to the United
Nations, together with the texts of a letter from
Ambassador Lodge to Security Council President
Sir Pierson Dixon requesting a meeting of the
Council; a letter to U.N. Secretary-General Dag
Hammarskjold from the- Egyptian Minister of
Foreign Affairs, Mahmoud Fawzi, transmitting
an Egyptian declaration on the Suez Canal; and
a reply to Dr. Fawzi from Mr. Hammarskjold.

STATEMENT BY AMBASSADOR LODGE, APRIL 2G

Press release 249 dated April 26

It will be recalled that the Security Council
last met to consider the item before us on October
13 when it unanimously agreed, with the concur-
rence of Egypt, on six basic requirements that
should be met in any Suez Canal settlement.^ It
was also agreed, at the suggestion of the United
States, that the Council remain seized of this im-
portant matter. The Council thus has a contin-
uing interest m this subject.

For these reasons and in light of the reopening
of the Suez Canal, the United States believed it
appropriate to request a meetmg of the Security
Council. On its part, the United States wishes
to report briefly to the Council its views regard-
ing the regune proposed for the Suez Canal by
Egypt. No doubt other members of the Council
will also wish to express their views. In this way,
the Council can take note of the situation regard-
ing the Suez Canal.

Late in March the Egyptian Government trans-
mitted to the United States, among certain other
govermnents, a set of proposals to govern the

' BtTLLETiN of Oct. 22, 1956, p. 611.

May 13, J957

operation of the Suez Canal.- The Govermnent
of Egypt requested the United States to comment
on its proposals. In response to this request, the
United States, without any mandate to represent
other users of the canal, made a number of sug-
gestions to the Egyptian Government. These sug-
gestions were designed to facilitate an effective
and generally acceptable international agreement
in conformity with the six requirements unani-
mously approved by the Security Council. In ad-
dition, the Secretary-General has communicated
his observations to the Egyptian Government dur-
ing the past month.

The Egyptian declaration has now been cir-
culated to the members of the Coimcil. Egypt
has requested that its declaration be registered
with the United Nations, and the Secretary-
General has done so.

The United States has already expressed its
views in detail to the Government of Egypt re-
garding its declaration. In our view, Mr. Presi-
dent, the Egyptian declaration in its present form
does not fully meet the six requirements of the
Security Coimcil. A fundamental difficulty lies
in the fact that there is no provision for "organ-
ized cooperation," which is the phrase referred to
in the exchange of correspondence of November
3, 1956, between the Secretary-General and the
Egyptian Government.^ In view of this lack of
provision for organized and systematic coopera-
tion between Egypt and the users, there is no as-
surance that the six requirements will in fact be
unplemented.

Perhaps no final judgment can be made regard-
ing the regime proposed by Egypt until it has
been tried out in practice. Therefore any de
facto acquiescence by the United States must be

" Not printed.

» U.N. doc. S/3728.

775

provisional, and we reserve the right to express
ourselves further on the matter in the future.
Obviously there remain a number of practical ar-
rangements which will have to be worked out in
giving effect to the Egyptian declaration. The
salient practical fact is that the question of
whether confidence among the users of the canal
can be established will depend on the manner in
which the Egyptian declaration is carried out in
practice. Pending settlement with the Universal
Suez Canal Company and in view of the pos-
sibility of double jeopardy, United States vessels
will be authorized to pay Egypt only imder pro-
test, as has been the case since last July.

We think that the interests of Egypt and the
users would both be served if the arrangements
for the canal and its operation are such that
governments and private concerns can base their
economic and business plans on the assumption
that there will in fact be, as there should be, free
and nondiscriminatory use of the canal at all
times by the ships of all nations.

Finally, Mr. President, we believe the Council
should remain seized of this matter while the sys-
tem proposed by Egypt is given a trial.

AMBASSADOR LODGE'S LETTER REQUESTING
COUNCIL MEETING

Press release 241 dated AprU 24

April 24, 1957

On behalf of the Government of the United
States, I request you in your capacity as President
of the Security Council to convene a meeting of
the Council on Thursday afternoon, April 25, or as
soon thereafter as may be convenient, for the
purpose of resuming discussion of Item 28 (re-
lating to the Suez Canal) of the list of items of
which the Security Council is seized.

During its discussion of this matter last October
the Council agreed, by a Eesolution adopted
unanimously on October 13, that any settlement of
the Suez question should meet six basic require-
ments therein set forth.

About a month ago the Government of Egypt
indicated the regime which it desired to apply to
the Canal traffic when it should be resumed and
requested observations thereon by the Govern-
ment of the United States.

The United States Government was informed

that the proposals of the Government of Egypt
were likewise conmiunicated to the Secretary
General.

The Canal is now again open to traffic and we
have been informed by the Government of Egypt
of its intention to make public its declaration on
the conditions applicable to transit.

In these circumstances, the Government of the
United States believes that the Council should
now meet to take note of the situation regarding
passage through the Suez Canal.

FOREIGN MINISTER FAWZI'S LETTER TRANS-
MITTING EGYPTIAN DECLARATION

U.N. doc. A/3676, S/3818

24 April 1957

The Government of Egypt are pleased to announce that
the Suez Canal is now open for normal traffic and will
thus once again serve as a link between the nations of
the world in the cause of peace and prosperity.

The Government of Egypt wish to aclinowledge with
appreciation and gratitude the efforts of the States and
peoples of the world who contributed to the restoration
of the Canal for normal traffic, and of the United Nations
whose exertions made it possible that the clearance
of the Canal be accomplished peacefully and in a short
time.

On 18 March 1957, the Government of Egypt set forth
in a memorandum * basic principles relating to the Suez
Canal and the arrangements for its operation. The
memorandum contemplated a further detailed statement
on the subject. In pursuance of the above, I have the
honour to enclose a copy of the declaration made today
by the Government of Egypt in fulfilment of their par-
ticipation in the Constantinople Convention of 1888, noting
their understanding o"f the Security Council resolution
of 13 October 1956 and in line with their statements re-
lating to it before the Council.

I have the honour to invite Tour Excellency's attention
to the last paragraph of the declaration which provides
that it will be deposited and registered with the Secre-
tariat of the United Nations. The declaration, with the
obligations therein, constitutes an international Instru-
ment and the Government of Egypt request that you
kindly receive and register it accordingly.

24 Apbil 1957

DECLARATION

In elaboration of the principles set forth In their memo-
randum dated 18 March 1957, the Government of the Re-
public of Egypt, in accord with the Constantinople Con-
vention of 1888 and the Charter of the United Nations,
make hereby the following Declaration on the Suez Canal
and the arrangements for its operation.

* Not printed.

776

Department of State Bulletin

1. Rcafflrmation of Convention

It remains the unaltered policy and firm purpose of the
Government of Egypt to respect the terras and the spirit
of tlie Constantinople Convention of 1888 and the rights
and obligations arising therefrom." The Government of
Egypt will continue to respect, observe and implement
them.

2. Observance of the Convention and of the Charter of the
United Xations

While reaffirming their determination to respect the
terms and the spirit of the Constantinople Convention of
ISSS and to abide by the Charter and the principles and
purposes of tie United Nations, the Government of Egypt
are confident that the other signatories of the said Con-
vention and all others concerned will be guided by the
same resolve.

3. Freedom of navigation, tolls, and development of the

Canal

The Government of Egypt are more particularly deter-
mined :

(a) To afford and maintain free and uninterrupted
navigation for all nations within the limits of and in ac-
cordance with the provisions of the Constantinople Con-
vention of 1888 ;

(b) That tolls shall continue to be levied in accordance
with the last agreement, concluded on 28 April 1936, be-
tween the Government of Egypt and the Suez Canal
Maritime Company, and that any increase in the current
rate of toUs within any twelve months, if it takes place,
shall be limited to 1 per cent, any increase beyond that
level to be the result of negotiations, and, failing agree-
ment, be settled by arbitration according to the procedure
set forth in paragraph 7 (b).

(c) That the Canal is maintained and developed in
accordance with the progressive requirements of modern
navigation and that such maintenance and development
shaU include the 8th and 9th Programmes of the Suez
Canal Maritime Company with such improvements to
them as are considered necessary.

4. Operation and management

The Canal will be operated and managed by the autono-
mous Suez Canal Authority established by the Govern-
ment of Egypt on 26 July 1956. The Government of
Egypt are looking forward with confidence to continued
co-operation with the nations of the world in advancing
the usefulness of the Canal. To that end Uie Government
of Egypt would welcome and encourage co-operation be-
tween the Suez Canal Authority and representatives of
shipping and trade.

5. Financial arrangements

(a) Tolls shall be payable in advance to the account of
the Suez Canal Authority at any bank as may be au-
thorized by it. In pursuance of this, the Suez Canal Au-
thority has authorized the National Bank of Egypt and
is negotiating with the Bank of International Settlement
to accept on its behalf payment of the Canal tolls.

' For text of Constantinople Convention, see Bulletin
of Oct. 22, 1956, p. 617.

May 13, ?957

(b) The Suez Canal Authority shall pay to the Gov-
ernment of Egypt 5 per cent of all the gross receipts as
royalty.

(c) The Suez Canal Authority will establish a Suez
Canal Capital and Development Fund into which shall be
paid 25 per cent of all gross receipts. This Fund will
assure that there shall be available to the Suez Canal
Authority adequate resources to meet the needs of de-
velopment and capital expenditure for the fulfilment of
the responsibilities they have assumed and are fully de-
termined to discharge.

C. Canal Code

The regulations governing the Canal, including the de-
tails of its operation, are embodied in the Canal Code
which is the law of the Canal. Due notice will be given
of any alteration in the Code, and any such alteration,
if it affects the principles and commitments in this Decla-
ration and is challenged or complained against for that
reason, shall be dealt with in accordance with the pro-
cedure set forth in paragraph 7 (b).

7. Discrimination and complaints relating to the Canal
Code

(a) In pursuance of the principles laid down in the
Constantinople Convention of 1888, the Suez Canal Au-
thority, by the terms of its Charter, can in no case grant
any vessel, company or other party any advantage or
favour not accorded to other vessels, companies or parties
on the same conditions.

(b) Complaints of discrimination or violation of the
Canal Code shall be sought to be resolved by the com-
plaining party by reference to the Suez Canal Authority.
In the event that such a reference does not resolve the
complaint, the matter may be referred, at the option of
the complaining party or the Authority, to an arbitration
tribunal composed of one nominee of the complaining
party, one of the Authority and a third to be chosen by
both. In case of disagreement, such third member will
be chosen by the President of the International Court of
Justice upon the application of either party.

(c) The decisions of the arbitration tribunal shall be
made by a majority of its members. The decisions shall
be binding upon the parties when they are rendered and
they must be carried out in good faith.

(d) The Government of Egypt will study further ap-
propriate arrangements that could be made for fact-
finding, consultation and arbitration on complaints relat-
ing to the Canal Code.

8. Compensation and claims

The question of compensation and claims in connexion
with the nationalization of the Suez Canal Maritime Com-
pany shall, unless agreed between the parties concerned,
be referred to arbitration in accordance with the estab-
lished international practice.

9. Disputes, disagreements or differences arising out of
the Convention and this Declaration

(a) Disputes or disagreements arising in respect of
the Constantinople Convention of 1888 or this Declaration
shall be settled in accordance with the Charter of the
United Nations.

777

(b) Differences arising between the parties to the said
Convention in respect of the interpretation or the applica-
bility of its provisions, if not otherwise resolved, will be
referred to the International Court of Justice. The Gov-
ernment of Egypt would take the necessary steps In order
to accept the compulsory jurisdiction of the International
Court of Justice in conformity with the provisions of
Article 36 of its Statute.

10. Status of this Declaration

The Goverament of Egypt make this Declaration, which
re-affirms and is in full accord with the terms and spirit
of the Constantinople Convention of 1888, as an expression
of their desire and determination to enable the Suez
Canal to be an efficient and adequate waterway linking
the nations of the world and serving the cause of peace
and prosperity.

This Declaration, with the obligations therein, consti-
tutes an international instrument and will be deposited
and registered with the Secretariat of the United Nations.

SECRETARY-GENERAL'S REPLY TO EGYPTIAN
LETTER

U.N. doc. A/3577, S/3819

New York, 2i April 1951

I have the honour to acknowledge the receipt of your
letter of 24 April 1957 transmitting for dei>osit the orig-
inal of a Declaration dated 24 April 1957 on the Suez
Canal and the arrangements for Its operation.

Pursuant to your request, the original of the Declara-
tion has been deposited in the archives of the United
Nations.

I have noted that the Declaration has also been trans-
mitted for the purpose of registration. I understand that
the Government of Egypt consider that the Declaration
constitutes an engagement of an international character
coming within the scope of Article 102 of the Charter,
and therefore registration has been effected in accord-
ance with article 1 of the Regulations to give effect to
that Article. The certificate of registration will be for-
warded to you in due course.

Your letter together with the Declaration will be cir-
culated as a document of the General Assembly and the
Security Council.

U.S. Delegations to
International Conferences

South Pacific Commission

Tlie T)ei>iirtment of State announced on April
24 (press release 242) that the U.S. Government

will be represented at a Review Conference of the
South Pacific Commission, to be convened at Can-
berra, Australia, on April 30, 1957, by the follow-
ing delegation :

U.S. Delegate

Walter Newbold WaUnsley, chairman. Deputy Assistant
Secretary of State for International Organization
Affairs

Advisers

Felix M. Keesing, U. S. Senior Commissioner, South Pa-
cific Commission, Department of Anthropology, Stan-
ford University

Knowles A. Ryerson, U.S. Commissioner, South Pacific
Commis.sion, College of Agriculture, University of
California

Edna Barr, Office of Dependent Area Affairs, Department
of State

James A. Boulware, Agricultural Attach^, American Em-
bassy, Canberra

Bolard More, Office of Dependent Area Affairs, Depart-
ment of State

William L. Teomans, Office of Territories, Department of
the Interior

The purpose of the meeting is to review the
work of the South Pacific Commission, to further
the cooperation among the six participating gov-
ernments— Australia, France, Netherlands, New
Zealand, the United Kingdom, and the United
States — in promoting the economic and social de-
velopment of the IS dependent territories of the
South Pacific region, including American Samoa,
Guam, and the Trust Territory of the Pacific
Islands under United States administration, and
to make plans for future operations of the Com-
mission. The Eeview Conference will discuss all
aspects of the Commission's work, including sub-
stantive, administrative, and financial matters.

Established to promote the economic and so-
cial advancement of the peoples within its re-
gional scope, the South Pacific Commission is es-
sentially a consultative and advisory body to the
six participating govermnents. The specific
functions of the Commission include : (a) recom-
mending to member governments measures for the
development of the area, in such fields as agri-
culture, transportation, industry, health, and edu-
cation; (b) undertaking research on problems of
interest to the area; (c) giving advice on coordi-
nating local projects having regional significance;

778

Depatfment of %iate Bulletin

and (d) providing technical assistance to member
governments and their territories.

Economic Cominission for Europe

The Department of State announced on April
23 (press release 234) tliat St.anley C. AUyn had
been sworn in that day as the U.S. representative
to the 12th session of tlie Economic Commission
for Europe (Ece), to be held at Geneva, Switzer-
land, April 29-May 15, 1957.

Mr. Allyn represented the United States at the
11th session of the Ece in 1956 and was U.S. repre-
sentative and chairman of the U.S. delegation to
tlie 9th session of the General Conference of the
United Nations Educational, Scientific and Cul-
tural Organization (Uxesco), which met at New
Delhi last fall.

Tlie Economic Commission for Europe is one
of the three regional commissions established by
the United Nations to deal with the special eco-
nomic problems of its area and to contribute to
better living standards in the world as a whole.
In this comiection the Ece initiates and partici-
pates in measures to (1) facilitate concerted ac-
tion for the reconstruction of Europe, (2) raise
the level of European economic activity, and (3)
maintain and strengthen the economic relations of
the European coimtries both among themselves and
with other countries of the world.

The Commission at its 12th session will review
the activities of its cominittees, which cover the
fields of agriculture, coal, electric power, housing,
industry and materials, inland transport, man-
power, steel, timber, and trade. The Annual Sur-
vey of Europe, as prepared by the secretariat on
its own responsibility, will also be reviewed. The
Swvey this year contains special sections on the
European transport situation and income distribu-
tion in Western Europe.

Mr. Allyn Confirmed To Be
U.S. Representative to ECE

The Senate on April 8 confirmed Stanley C.
Allyn to be the representative of the United States
to the 12th session of the Economic Commission
for Europe of the Economic and Social Council
of the United Nations.

GATT Intersessional Committee
To Meet at Geneva

Tlie Department of State announced on April
22 (press release 230) that the 18-member In-
tersessional Committee of the Contracting Parties
to the General Agreement on Tariffs and Trade
(Gatt), of which the United States is a member,
will meet at Geneva begiiming April 24.^ The
Comnuttee will discuss the procedures to be fol-
lowed for the consideration of the European Com-
mon Market treaty by the Contracting Parties.

The treaty, signed on March 25 at Kome by
France, Germany, Italy, Luxembourg, the Nether-
lands, and Belgium and now in process of being
submitted to parliaments for ratification, provides
generally for the economic integration of the six
countries through a variety of measures including
the removal of tariffs and other restrictions on
trade among them.

The Gatt Intersessional Conmiittee is also ex-
pected to review plans for consulting in June and
October with a number of countries maintaming
import quotas for balance-of-payments reasons
and to handle other matters of a routine nature.

^ The United States will be represented by Carl Corse,
Chief, Trade Agreements and Treaties Division, Depart-
ment of State, and Stanley Cleveland, OflSce of European
Regional Affairs, Department of State.

May 73, 7957

779

The U.N. Economic Commission for Asia and the Far East

Following are three ntatements mude hy Walter
M. Kotschnig, director of the Office of Interna-
tional Economic and Social. Affairs^ at the 13th
session of the U.N. Econoinic CoTnmission for
Asia and the Far East, which met at Bangkok,
Thailand, March 18-28. Mr. Kotschnig was the
Acting U.S. Representative.

TEN YEARS OF ECAFE t

Anniversaries are times for reminiscences, and
as an old timer in the United Nations I hope I may
be allowed to indulge in a bit of personal remi-
niscing. My mind goes back this morning to the
very early beginnings of the United Nations, to
Dmnbarton Oaks and to San Francisco, where
the fovmding fathers met. At that time there
was little interest in economic and social matters.
The United States pi-oposal at Dmnbarton Oaks
for the creation of an economic and social council
met with little enthusiasm. One country, here
present, opposed the proposal outright at first.
In San Francisco some of the smaller and younger
countries rather than the big powere urged eco-
nomic action through the United Nations.

Since then we have witnessed a development
which is little short of miraculous. Any United
Nations organization chart shows that today two-
thirds of all organizational units of the United
Nations deal with economic, social, and related
mattere. Under the Economic and Social Council
there are seven functional commissions and three
regional commissions. Beyond this there are in
the family of the United Nations organizations
10 specialized agencies, the majority of which was
created after 1944. The activities of all these
bodies have grown by leaps and bomids. All this
reflects the basic recognition that the promotion

' Statement made on Mar. 19 at a meeting commemorat-
ins the 10th nnniversary of the Commission.

of the general welfare is essential to the preserva-
tion of peace.

Political and Economic Progress

Progress has been particularly marked in the
case of EcAFE. Our organization has been push-
ing forward and outward persistently and deter-
minedly. It has done so in the face of tremendous
difficulties and problems.

The growth of Ecafe coincided with the period
of the great movement of independence in the
region — the creation of 11 new states, giving no
rest to the mapmakers. This great movement
has had and continues to have the sympathy and
support of the American people and our Govern-
ment. Those who are given to accusing us of
imperialistic designs know little if anything of
the American people and their history. The mem-
ories of our own struggle for independence are
still very much alive. They have made us deeply
sympathetic with the struggle for independence
of other peoples, as they have helped us to cement
our relations and our friendships with our former
rulers on a basis of full equality.

The political changes in the region inevitably
caused certain economic dislocations which had
to be met. But more important than these dis-
locations was another development of the last 10
years. I refer to what has been called the "revo-
lution of rising expectations."

"We have heard it often and it is a fact that the
teeming millions are no longer content with their
miserable lot. For the first time in history they
have realized that they are not eternally doomed
to economic misery, to destitution, to sickness and
early death.

And again, Mr. Chairman, the American people
were aroused in sympathy. They heard the voices
of the East, they saw what was happening, and
they rejoiced, \\1iat is more, they wanted to

780

Deparlment of State Bulletin

help for they believe in the dignity of man and his
right to a fuller life. They, along with other na-
tions of tlie West, dipped into their resources of
manpower and capital to assist. Not in order to
boast but to convey to you our sense of gratifica-
tion, we may state that we found it possible be-
tween 1946 and 1956 to contribute in different
forms close to $6 billion of public money to the
economic and social development of this region in
addition to the growing volume of private
investment.

Throughout this great resurgence of energy,
this drive for a better life, Ecafe grew until by
now it has become a major vehicle of the aspira-
tions of the people of Asia and the Far East and
an increasingly important tool for their attain-
ment.

Ecafe has grown in size. Every independent
state and a few dependencies remaining within the
region belong to it. More important than this:
Ecafe has grown in wisdom and understanding,
in depth and realism. It has made for greater co-
hesion within the region and for better relations
with countries outside the area. It has helped to
lay the basis for economic development of the
member countries within the region, for develop-
ing statistical services essential to an understand-
ing of the problems besetting the region; it has
helped to ascertain and define major problem
areas; it has advanced the grasp of techniques
necessary to meet these problems. Finally, it has
helped to give us better perspectives which make
for balanced development plans within the region.

In this context I want to pay warm and special
tribute to Dr. Lokanathan,- whose name will go
down in history as the first builder of Ecafe. And
may I add that after the few days that we have
had here we are fully confident that our new ex-
ecutive secretary, Dr. [C. V.] Narasimham is evi-
dently another man of destiny who will lead our
organization to new heights and even more etfec-
tive work.

Making a Choice for tlie Future

And that leads me to the future. The road
ahead of all of us is still long and arduous. You
know this as well as we do. In the economic area
there are no panaceas, no easy solutions.

Many basic issues are still to be hammered out.

' P. S. Lokanathan, former executive secretary of
ECAFE.

There are still uncertainties in the minds of many
as to which form of economy is best suited to their
countries. The issue of the relative advantages of
a free economy as compared to the totalitarian
approach to economic development is not yet fully
resolved.

As I stated in the Coiiomittee on Industry and
Trade a few days ago, my country does not want
to impose its own particular ideas and concepts
on any country. But I am sure, Mr. Chairman,
you will permit me to say that we hope and pray
that our friends in the region — and that is every
counti-y within the region without exception —
will find it advantageous to carry the spirit of
freedom, which has led to its political independ-
ence, forward into the economic realm.

Each country has to make its own choice. But
speaking from our own experience I can only say
that the economic growth and health of my coun-
try, our high standards of living, are built upon
the idea of individual freedom and initiative, the
incentive of possible personal achievement, and
an equal opportunity for all. These and hard
work are the major elements which have made us
strong and prosperous.

This in no way implies negation of the responsi-
bility of the state to safeguard the common welfare
of all. Our Government has large regulatory
powers which it employs in the interest of the
community as a whole. And our Government has
taken the initiative and helped in the develop-
ment of certain basic resources — as for instance in
the Tennessee Valley water and power develop-
ment and various high dam systems. Presently
our Government is financing a $100-billion road
program to take care of the 40 to 50 million in-
dividually owned motor cars which carry our
people to work and to recreation.

There are times when the totalitarian approach
to economic development may look attractive to
countries beset by enormous economic problems
and the push of the masses for an early improve-
ment of their lot. In some cases, it is held, quicker
results might be achieved by the regimentation of
labor or by outright forced labor, by way of
forced savings and other means of totalitarian
control of the efforts of whole nations. "Whether,
however, this is a way of building soundly,
securely, is another question. Since the spirit of
man cannot be fettered and enslaved indefinitely,
such regimentation may only lead to later trouble,

May 13, 1957

781

to greater tensions, to new upheavals, as we have
recently witnessed in Eui'ope, and, as was shown in
the case of Hungary, may lead to new ruthless
oppressions. At any rate, if we love man, if we
believe in his dignity, we can never forget the
ghastly cost of the totalitarian approach in terms
of human suffering, human lives, and human
happiness.

Mr. Chairman, I want to close by congratulating
not only Ecafe but also the countries in the region
on the progress they have made during the past
10 years. There is a new hope alive in the region,
a new spirit of self-reliance, of self-help. Some
of us from outside the region are happy that we
are able to help a bit. We have done it willingly
and gladly. But the real credit is due to your-
selves, your ei;ilightened leaders, the hard work of
your own people.

Mr. Chairman and fellow delegates, the people
and the Government of the United States stand
ready to continue to help with expert advice and
training and other forms of aid. As we move
forward together, we may yet establish in this
generation, in our age, a new brotherhood of man
in greater happiness and in larger freedom for
all.

THE ECONOMIC SITUATION IN ASIA^

On a motion of my delegation at the Eangoon
session of the Ecafe, the Commission decided to
open in the future every one of its sessions with a
broad debate of the economic situation in Asia,
this debate to be based on the annual survey pre-
pared by the secretariat. In retrospect, I believe
it can be said that this was a wise decision. From
year to year the debate has improved in scope
and in depth. It has helped us to gain perspective
and to gain a grasp of the interrelatedness of prob-
lems we are facing. Certainly, this year we have
all been impressed by the quality of the contribu-
tions to the debate made by the speakers who have
preceded me, and I want to pay tribute to them.

What I have to say can be roughly divided into
three parts. The first will deal with the annual
survey ^ and some of the major trends in the eco-
nomic development of the region which it reveals.

' Statement made on Mar. 20.

'Economic Survey of Asia and the Far East, 1956
(avniliiblc at U.N. .sales offices; prire, $2..".0).

I shall then report briefly, insofar as this is of
interest to the countries in the region, on the
situation in my own country ; and I will conclude
with some observations on our foreign economic
policy and its impact on the countries in the Ecafe
region.

The Survey

Let me begin on a positive note. In reading
the survey my delegation was pleased to note that
195G was generally a very good year for the coun-
tries of this region. For the region as a whole,
food production surpassed previous records. In-
dustrial output in most countries, particularly
the jirocessing of agricultural and mineral raw
materials, accelerated markedly. Actually this
output rose more rapidly for the Ecafe region
than in the world as a whole. The level of trade
in the aggregate was higher than in 1955, which,
you will recall, was also a prosperous trade year.

All this emerges clearly from the lucid text
of the annual survey. The secretariat is to be
highly commended for its continuing efforts to
improve the survey. We particularly wish to
commend the secretariat for the preparation of
chapter II, which is a maiden effort in surveying
the main features of the economic development
plans which are now operative or which are under
consideration in a number of the countries in the
region. We also look with favor on the work
which has been done in developing regional
indexes.

My Government and my delegation have care-
fully studied the presentation which is contained
in the individual country chapters. Because of
our intense interest in this area, we do keep in
close touch with developments in the various coun-
tries, and, in the light of our own data and anal-
yses, we might have some observations on the
treatment which has been given to some countries
of the region in the survey. However, I believe,
Mr. Chairman, that it would be presumptuous
on our part to deal in any specific way with any
of these country chapters since we have in our
midst fully qualified experts from the countries
themselves, some of whom have already pointed
out certain deficiencies in the text.

Broadly speaking, we feel that the survey would
gain by a greater emphasis on analysis rather
than description. Even on the descriptive side,
the lack of data for the final months of 1956 re-

782

Department of State Bulletin

duces the value of the report in the case of a num-
ber of countries and interferes with the formula-
tion of general conclusions covering the entire
region. I recognize, however, that this is prob-
ably inevitable. This makes it all the more im-
portant that gi-eater emphasis be placed on analy-
sis. In this connection, we are struck to find a
certain tendency in some places to confuse a coun-
try's goals with its achievements, which is a dis-
tinction of some importance.

If I now proceed to a few critical comments on
a few specific sections and passages in the report,
I hope I shall not be misunderstood. The survey
is a remarkable document — better than any previ-
ous survey — and none of my comments should be
interpreted as an attempt to detract from that
fact. IMy comments are made in a desire to be
helpful, to enliance the value of future editions
of the survey, and will, I hope, be received in the
same spirit.

The introduction includes a statement that "no
marked increase in the inflow of private capital
was observable, although a few countries modified
their regulations to give greater encouragement
to private investment." This statement leaves the
impression that new regulations to encourage for-
eign private investment are not effective. Yet
we all are aware that in most cases such encourage-
ment as there has been is of recent origin and
often still rests on broad statements of policy
which have not yet been carried forward in terms
of actual administration.

There are various references to foreign aid in
the report, but we feel that at times, as for ex-
ample on page 6, they give a somewhat distorted
and misleading picture of the relative importance
of aid received from various countries and inter-
national organizations.

There appears to be a tendency to attach more
importance to promises of future aid and trade
agreements, short-term loans, and reciprocal
"gifts" than to substantial economic assistance
which has been flowing in increasing volume for
many years. In this connection, I should point
out that table 7 on page 33, showmg United States
economic aid in the period 1 July 1955 to 30 June
1956, omits economic aid of the category "de-
fense support," that is, economic aid designed to
assist in the economic development of certain
countries in the Ecafe region which are faced
with the necessity of maintaining strong forces

May J3, 7957

to deter aggression. In spite of the perhaps some-
what obscure term "defense support," aid given
under that heading is designed to strengthen the
economies of the countries concerned and to assist
in their economic development. Under this head-
ing the United States obligated funds totaling
$821 million for eight countries in the Ecafe re-
gion for projects involving rehabilitation and ex-
pansion of transport, communications, water
supplies, irrigation, power, and other types of
basic economic development. Such funds are in-
cluded in Colombo Plan and other international
reports describing external aid to this area. To
exclude them from the Ecafe report is to under-
state by several times the assistance given by the
United States.

I feel sure that the secretariat will wish to re-
cord properly such aid in future Ecafe reports.
As for this year, we have asked the secretariat to
circulate to the Commission the necessary data to
amplify the figures given in the 1956 survey.

The chapter on economic development plans, in
our opinion, gives inadequate treatment to the
role of the private sector in governmental develop-
ment plans. The same point was made yesterday
by the distinguished delegate of India. The chap-
ter points out the increasing importance of the
public sector in plans and programs but fails to
point out that the major part of the productive
effort in all countries of the region continues to be
accounted for by the private sector of the economy.
There is sometimes an inclination to think of these
activities as being in conflict. We do not share
this view. Actually many of the public invest-
ment activities of the region, particularly in the
establishment of the basic facilities, are designed
to support the economic efforts of individuals,
groups, and communities. Success in the estab-
lishment of basic facilities in the public sector,
in fact, makes it possible for private initiative
greatly to increase its contributions to the develop-
ment of the economies of member countries.

I would like to say a word at this point on the
efforts of the secretariat to give us a report of de-
velopments in the Communist-controlled parts of
China. As the Mainland China chapter warns
us, the secretariat had to undertake its report on
the basis of unverified and unverifiable claims and
propaganda statements of the Communist authori-
ties. The result, it is clear, is not satisfactory. A
summary of Communist claims, when published

783

with the factual materials regarding the achieve-
ments and problems of the countries of the region,
creates an unfair impression of comparability that
does not in fact exist. While the qualifications as
inserted by the secretariat are obviously essential,
there is little which even the most carefully worded
introductory statement or footnote can do to rem-
edy this misleading impression.

It is evident that the secretariat cannot hope to
sift from the self-seeking propaganda of the
Chinese Communists the grudging and intention-
ally obscured admissions of errors, mistakes, and
waste which might introduce a note of realism in
the chorus of claims. Apparently to avoid politi-
cal controversy the seci-etariat has omitted an ap-
propriate discussion of the human cost of the
Chinese Communist system. However, the com-
pulsion and terror of that system is inseparable
fi'om its claims of achievement and development.

In the view of my delegation this section of the
survey is a mistaken and inevitably unsuccessful
effort. It should not be continued. In future
surveys the effort devoted to this fruitless imder-
taking should be concentrated on developments
and problems in member countries.

United States Economy Prosperous

So much for the survey. I would like now to
set before the Commission a few significant facts
about the economy of the United States. I do so
because the prosperity of the United States is a
matter of very considerable practical significance
for most of the countries of the Ecafe region. Re-
peatedly in our travels in Asia our people have
been asked such questions as: Will the United
States continue its present levels of rubber im-
ports ? What are the prospects of manganese and
burlap ? Can the United States supply structural
steel on our new bridge pro j ects ? Answers to such
questions revolve around the prosperity of our
many-faceted economy.

The economy of the United States has shown a
very high level of prosperity for more than a dec-
ade. The rising trend of 1954^55, which was re-
ported to you last year, continued, at a more mod-
erate pace, in 1956. A substantial rise in business
activity in the final quarter, coupled with the
smaller advances earlier in the year, resulted in a
1956 gross national product (that is, the grand
total of the goods and services produced in tlie
United States) estimated at $412 billion— an in-

crease of $21.5 billion over 1955. About half of
this increase of $21.5 billion last year, however,
was due to rising prices. This inflationary aspect
of our prosperity is one which we are watching
very carefully for, as our President indicated in his
economic report to the Congress in January, our
aim is not just prosperity but prosperity with price
stability.

Thus, despite some problems to which all sectors
of our economy are devoting attention, economic
activity in the United States in 1956 was at the
highest level ever enjoyed. And we confidently
look forward to continued growth in the year
ahead.

An important contributing factor to the eco-
nomic advance in 1956 was the expansion of new
productive facilities; capital outlays increased
about 20 percent above the 1955 level. This in-
vestment strength, particularly notable in equip-
ment expenditures, was all the more remarkable
since it followed a similar increase in 1955. Pro-
vision for new and better production facilities
occurred in virtually all fields of production, trans-
port, and trade but was most marked in manu-J
facturing and public utilities. 1

This continuation of productive expansion
clearly reflects the confidence of U.S. private busi-
ness and the people of our country in their econ-
omy. Contributory to tliis business confidence are
the growing population (which has now reached
more than 170 million), our liigh level of em-
ployment (averaging 65 million in 1956), the in-
creasing levels of income and consumer spending,
the new vistas opened up by technological develop-
ments, and the continuation of sound government
policies including a balanced budget and mainte-
nance of a somad currency which lay the base for
orderly expansion by our free-enterprise system.

Trade Levels and Policies

Growing foreign trade and investment were
among the expansionary forces of our economy in
1956. Preliminary data show marked increases
over 1955 levels in exports and imports of both
goods and services. Merchandise sliipments
abroad, which constitute about three-fourths of
our exports of goods and services, were nearly $3
billion larger than in 1955, reaching a record high
of $17 billion. Goods shipped to the United
States rose more than $1 billion — to a new record
high of nearly $13 billion.

784

Department of State Bulletin

Contributing to the overall increase in U.S.
trade in 195G was our trade with countries of the
EcATE region. Supplying about 13 percent of our
imports and also taking about 13 percent of our
exports, this trade rose above 1955 levels, 5 per-
cent for imports and 27 percent for exports for 11
months of the year. The increase in our purchases
reflected larger shipments, in terms of value, of
jute and burlap, tmigsten, coconut oil, and tex-
tiles and other manufactured goods from Far
Eastern sources while at the same time imports
of some other commodities such as rubber, tin,
and tea showed modest declines. On the U.S. ex-
port side, the rise was accounted for by larger
shipments of a wide variety of machinery and
other manufactures and agricultural commodities.

The prospect for further increases in our trade
with countries of the Ecafe' region in 1957 is gen-
erally favorable. Our high level of economic ac-
tivity, together with Asian plans for economic de-
velopment, presage a continued high level of trade
beneficial to all concerned.

The United States as a matter of principle be-
lieves in and supports a liberal foreign trade
policy. We, like other coinitries here represented,
recognize the need to move cautiously, for strong
interests and emotions are involved, but the broad
pattern of movement is steadily toward more lib-
eralized trade.

In order to further facilitate the growth of trade
and in support of multilateral actions taken under
the General Agreement on Tariffs and Trade
(Gait) and in the interest of lessening trade bar-
riers and discriminatory restrictions, our Presi-
dent has recently called for the prompt enact-
ment of legislation approving U.S. membership
in the proposed Organization for Trade Coopera-
tion (Otc).= Tlirough this organization, which
my Government hopes will soon be established,
the Gatt can be made a more effective instrument.

Steps taken by my country in 1956 toward ex-
panding world trade include the enactment of a
second Customs Simplification Act," increased as-
sistance to exporters and increased credits to for-
eign countries by our Export-Import Bank, a
stepped-up participation in international trade
fairs, and the sending abroad of a greater number
of trade missions.

' Bulletin of Apr. 22, 1957, p. 657.

° For a statement by President Eisenhower on the Cus-
toms Simplification Act of 1056, see ihid., Aug. 13, 1956, p.
273.

Shipments of U.S. surplus farm products into
the stream of world trade have become increas-
ingly important this past year. Additional sur-
plus sales agreements under U.S. Public Law 480
liave been signed with several countries in the
EcATE region, including large ones with India,
Pakistan, and Indonesia. Every effort is being
made— and as the record shows, successfully— to
administer the program with due regard to cus-
tomary markets abroad, so as not to injure in any
way the established markets and trade interests
of any country. The true significance of the pro-
gi-am lies not only in the fact that it helps to meet
or avoid acute famine conditions. It has proved
an effective means to counteract inflationary ten-
dencies in coimtries wliich are in a state of rapid
economic development, resulting in increased pur-
chasing power and consumer demand. The use
of counterpart funds, derived from such sales,
for development purposes has facilitated the fi-
nancing of development projects essential to the
economic growth of the countries concerned.

Investment Developments

I should like next to comment on U.S. invest-
ment policies and activities. The United States is
endeavoring to expand the flow of private invest-
ment fimds to other countries — wherever possible
as a preferred alternative to Government loans,
grants, and other assistance. We believe that, to
the extent private investment can provide the
needed financial resources in Asian countries, the
advantages would be many. Private investment
has the virtue of being a thoroughly tested vehicle
for the export of managerial and technical know-
how in one package. Such investment also facili-
tates the selection of projects designed to meet es-
sential consumer wants. And it helps to trans-
mit the qualities of innovation and enterprise so
fundamental to economic progress. It is for these
reasons that my Government continues to stress
the importance of private investment and urges
other countries to encourage it. Direct private
investment is more than financing; it combines
finance, knowledge, technical ability, and facili-
ties for training local personnel.

Private U.S. capital investments abroad, which
were almost $1.2 billion in 1955, more than doubled
in 1956. Although U.S. investment in the Ecafe
region is relatively small compared to that in
areas closer to home, it is slowly increasing. And

May 73, 7957

785

with additional efforts on the part of countries of
the region to develop investment climates condu-
cive to private foreign investment we would hope
that this pace could be accelerated.

We continue to negotiate treaties of friendship,
commerce and navigation with countries in the
region. These treaties are in the nature of specific
assurances of fair treatment for nationals of each
party who wish to trade, or invest, or run a busi-
ness enterprise in the other country. This past
year the Kepublic of Korea has joined the group
of EcAFE countries which have concluded such
treaties with us. Several other countries are now
negotiating or considering such treaties. We also
stand ready to enter into additional investment
guaranty agreements. So far, five such agree-
ments have been concluded with five countries of
the region.

The United States has negotiated treaties to
avoid double taxation with a number of countries
throughout the M'orld, including two in the
EcAFE area. In his recent economic message to
the Congress the President has called for further
facilitating private investment abroad by addi-
tional tax treaties which "subject to appropriate
safeguards, recognize the [income tax] laws of
other countries designed to attract new invest-
ment." ^

As one of the measures to encourage the gi-eater
flow of private capital we are continuing to ex-
pand and improve our program of advisory and
informational services to U.S. businessmen; we
are trying to provide them with more and better
information on the investment situation of coun-
tries of this region. Our trade missions to various
countries in the area have been successful not only
in developing new trade opportunities but have
also found in some areas tangible investment pros-
pects which have been brought to the attention of
U.S. businessmen. In this connection I wish to
emphasize that our efforts would gain in effective-
ness if they were more fully matched by similar
promotional activities on the part of the countries
of the EcAFE region. Many interested business-
men have told us that they have great difficulty in
learning about opportunities to invest abroad, al-
though I am the first to recognize that fehe situa-
tion is improving.

This past year witnessed the inauguration of the

International Finance Corporation, an affiliate of
the International Bank, which provides new op-
portunities for private enterprise by encouraging
equity investments. We are particularly glad to
see that so many of the countries of the Ecafe
region are participating as members in this new
source of development financing and hope that its
facilities will be fully utilized.

Economic Aid

Continuation of economic assistance to the free
nations of the world is a keystone of my Govern-
ment's efforts to promote peace and well-being for
all people. United States aid under our economic
and technical cooperation program to countries of
the Ecafe region, including the so-called defense
support which I mentioned earlier, amounted to
about $950 million in fiscal year 1956 and in fiscal
year 1957 will be of the same order of magnitude.
In addition, the Export-Import Bank disbursed
loans amounting to over $100 million in 1956, and
Public Law 480 agreements made with countries
of the region amounted to $822 million up to the
end of 1956.

In addition to these country programs, the Pres-
ident's Asian Economic Development Fund re-
mains available until June 30, 1958, for projects
which are beneficial to two or more countries of
the region. Notable among such projects now ap-
proved or getting under way are the telecommuni-
cations projects of Southeast Asia — for which an
engineering survey contract has been signed — and
the India-Nepal roads project designed to facili-
tate trade and transit between these two coun-
tries. Furthermore, the United States Govern-
ment has announced that it is prepared to use
about $20 million of this fund for an Asian Re-
gional Nuclear Research and Training Center in
Manila.* This cooperative project could provide
facilities for training and research in the fields of
medicine, agriculture, and industry, applying the
new techniques of atomic energy.

The United States, through its atoms-for-peace
program, is assisting countries throughout the
world in their programs for using atomic energy
for peaceful purposes. This program includes the
exchange of information, assistance in training

'Ibid., Feb. 11, lOijT, p. 224.
786

' For a statement by Assistant Secretary Robertson on
the Asian Regional Nuclear Center, see Hid., Dec. 17, 1956,
p. 957.

Department of Sfofe Bulletin

technical personnel, and aid in securing special-
ized equipment and essential components. Bilat-
eral agreements have now been completed with
several countries of the Ecafe region, and it is
hoped that this area of cooperation will be ex-
tended both by way of bilateral agreements and
through the new International Atomic Energy
A ironcy when it comes into existence.

In all of our programs my country is devoted to
the development of ever closer working relation-
ships with the countries of the Ecafe region. We
wish to see constantly increasing standards of liv-
ing, and our policies and programs are designed
to assist in the achievement of this objective. By
working together we believe that the independ-
ence, security, and well-being of all our countries
can be maintained and strengthened.

REPLY TO SOVIET OBSERVATIONS ON ECO-
NOMIC SITUATION 0

The representative of the U.S.S.R. saw fit this
morning to make certain direct attacks on my
country. In the course of his speech he produced
all kinds of misstatements which make a reply
on my part mandatory. I am sorry that this has
become necessary. In my own speech on "The
Economic Situation in Asia" I never mentioned
the U.S.S.R., in order to save the Commission
from the kind of propaganda and mudslinging
which has vitiated so many United Nations de-
bates in the past. But too many statements were
made by the representative of the U.S.S.R. which
cannot remain unchallenged.

I shall take up only a few.

The representative of the U.S.S.R. found it
necessary to launch a violent attack on private in-
vestment, which he evidently considers as ruinous
and undesirable in any shape or form. The im-
plication of this attack is clear : the representative
of the U.S.S.R. recognizes only the Communist
form of economy. It is the economy which he
wants to impose by every possible means on the
region. By contrast, I want to remind you that
in my own initial statement I took a much more
balanced view. I explicitly recognized the im-
portance of the public sector. I pointed out that
both the public and the private sectors are impor-
tant and have to be cultivated and developed to

• statement made on Mar. 23.

achieve maximum results in the interests of the
region. I made it clear that we have no intention
of imposing our views on this region.

In this connection the representative of the
Soviet Union made much over what he calls
"foreign monopolies." I submit that it would
have been most helpful if he had looked at the
realities of today rather than at the yellowed,
dog-eared pages of Soviet Communist textbooks
and propaganda pamphlets.

Had he looked at realities, he would have known
that my Government has established strict con-
trols over the formation of large combinations of
business, that we have effective laws to break up
any monopolies, and that these laws are effectively
applied. We are a "capitalist" country, yes. But
our brand of capitalism is a social capitalism, and
more and more of our workers — millions of
them — share in our business enterprises.

As was pointed out so cogently by the repre-
sentative of the United Kingdom, it does not be-
hoove the i-epresentative of the U.S.S.R. to speak
of monopolies in the Western World, for he repre-
sents the most complete monopoly, the most per-
vasive monopoly, the world has ever seen. It is
a monopoly which does not only control or, rather,
own the economy of his country, but it is a mo-
nopoly which has deprived every individual in his
country of his basic freedoms and which con-
trols him body and soul. In their foreign po-
litico-economic programs, the small group of
leaders of this monopoly can change the direction
of their trade by a stroke of the pen, and woe to
those countries which have become dependent on
the U.S.S.R. and dare to have any ideas of their
own. There is no security for them either eco-
nomic or otherwise, no assurances that they will
be allowed to develop their economies in their own
interest.

The representative of the U.S.S.R. said that his
country does not look for profit. He is right in
the sense that the rulers of the U.S.S.R. do not
look for profit alone. They look for economic
and political domination. In the satellite coun-
tries of Eastern Europe they have perverted the
economic development of the Eastern European
states to suit the ends and interests of the Soviet
Union. They forced them to develop certain
types of industries which these states did not
want and which are designed primarily to sup-
port the Soviet Union. The consumers in these
countries — Poland and Hungary, and others —

Niay 73, 7957

787

were left in a pitiable state of unmet needs. At
this point I could quote at length from statements
made by Communist leaders such as Gomulka and
Lange in Poland, who had the courage to speak
up against the encroachments of Soviet com-
munism in the interests of their countries. I could
quote from Hungarian leaders, Communists
themselves, telling the same sorry story. Some
of these leaders are dead, felled by Russian arms,
but their words live on.

The monopolists of Moscow have created so-
called joint companies in what they consider their
dependencies. These companies serve to channel
the profits of economic progress in such countries
as Rumania and Yugoslavia to the Soviet Union.
Mai-shal Tito and others had much to say on this
subject at different times. One of Marshal Tito's
first acts after he had regained freedom for his
coimtry was to liquidate these companies.

The representative of the U.S.S.R. also enlarged
on the benefits of U.S.S.R. trade with the region.
He gave the impression that the future of this
region depended to a large extent on this trade.
We have no objection to such trade, even if we
had the right to object in the case of countries
which do not stand formally condemned for ag-
gression. But to show up the real importance of
this Soviet trade, I will quote only two figures
culled fi-om official Ecafe statistics. These sta-
tistics show that the trade of all of Eastern
Europe, including the U.S.S.R., with the region
based on trade figures for the first half of 1956
and computed at the annual rate amounted to $220
million for the year 1956. The trade of the
U.S.S.R. alone amounted to a pitiful $40 million.
The trade of the United States alone with the
region in the same period amounted to approxi-
mately $3.4 billion, according to Ecafe figures.
Later figures of my Government show that our
trade for 1956 with the region amounted to ap-
proximately $3.9 billion. This is just about 100
times greater than the trade of the Soviet Union.

The representative of the U.S.S.R. also waxed
most indignant when he spoke about "military
aid" by the United States to the region. All I can
say is that his statements on this subject presented
a deliberate perversion of fact.

I did not speak of our "military aid," which is
substantial and designed to give the countries of
the region a measure of security which will enable
them to build up and develop their economies

peacefully and in freedom, and to raise the stand-
ard of living of their people without fearing thai
they might become victims of totalitarian oppres-
sion. I did not speak of this aid. I spoke about
"defense support," which is something quite dif-
ferent. Defense support is essentially economic
aid. It means new roads and other transport
facilities, water and irrigation developments,
support for the creation and development of new
industries. It means work for large numbers of
workers and a general incentive to economic de-
velopment. I am grateful to the representative
of Viet-Nam for already having pointed this out.

The remarks of the representative of the
U.S.S.R. were far off the point. I can only con-
clude that my own dispassionate remarks on this
subject were such a source of embarrassment to
the representative of the U.S.S.R. that he lost all
sense of perspective and direction. I am sorry I
embarrassed him.

In conclusion, I again regret that I had to enter
into this discussion. We have differences with the
U.S.S.R., but they should not be fought out on
the backs of the toiling masses, the peoples of this
great continent, and they should not interfere
with our work here. But I had to set the record
straight. Basic issues are involved, and the least
we can, we must, do is to put before the people3
of Asia and the Far East clear-cut, imvarnished,
and verifiable facts so that they may act in full
knowledge of the facts and choose wisely as they
feel their way, their way, toward a greater future.

Current U.N. Documents:
A Selected Bibliography

Trusteeship Council

Financing of the Economic Development Plans of the
Trust Territory of Somaliland Under Italian Adminis-
tration. T/1296, January 30, 1957. 12S pp. mimeo.

Examination of the Annual Report on the Administra-
tion of the Cameroons Under British Adniiuistration.
1955. T/1302, March 6, 1957. 9 pp. mltneo.

Examination of CoiKlitions in the Trust Territory of the
Cameroons Under French Administration. T/L.736,
March 7, 1957. 31 pp. mimeo.

Examination of Annual Reports. Observations by the
United Nations Educational, Scientific and Cultural
Organization concerning the annual reports for 1955
on the Trust Territories of Tanganyika, Ruanda-
Uruiidi, the Cameroons under British Administration,
the (Cameroons under French Administration and Togo-
land under British Administration. T/1304, March 12,
19.57. 71 pp. mimeo.

Agenda of the Nineteenth Session of the Trusteeship
Council. T/130G, March 14, 1957. 3 pp. mimeo.

788

Department of State Bulletin

xamination of Annual Reports. Observations by the
United Nations Educational, Scientific and Cultural
Or.i^'auization concerning the annual report for 1955 on
tlie Trust Territory of Togoland under French Adminis-
tration. T/1304/Add. 1, March 21, 1!)57. 9 pp. mimeo.

Ixamination of Conditions in the Trust Territory of
Togoland Under French Administration. T/L.740,
March 25, 1957. 23 pp. mimeo.

;xamiuation of Conditions in the Trust Territory of the
Cameroons Under French Administration, Annex to
tlie Outline of Conditions. T/L.736/Add.l, March 26,
l'.i."i7. G pp. mimeo.

Jninniittee on Kural Economic Development of the Trust
Territories. Study of Population, Land Utilization and
Land System in Ruanda-Urundi. T/AC.36/L.60,
March 2G, 1957. 130 pp. mimeo.

idministrative Unions Affecting Trust Territories.
Report of the Standing Committee on Administrative
Unions. T/L.741, March 28, 1957. 5 pp. mimeo.

Iconomic and Social Council

Economic Commission for Asia and the Far East. Com-
mittee on Industry and Trade. Official records. Eighth
session, 24-31 January 1950. E/CN.11/I&T/124, June
IS, 19.j6. 196 pp. mimeo.
economic Commission for Latin America. Payments and
Trade in Latin America. Current Problems. E/CN.12/-
C.1/3, August 12, 1956. 83 pp. mimeo.
Iconomic Commission for Latin America. Inter-Latin-
American Commodity Trade in 1954 and 1955. Situa-
tion and Prospects in 1956. E/CN.12/C.1/5, August
15, 1956. 102 pp. mimeo.
BJconomic Commission for Asia and the Far East. Inland
Transport Committee. Sixth session, 15-21 January
1957. Bangkok, Thailand. Library Service.
E/CN.ll/Trans/122, November 9, 1956. 9 pp. mimeo.
Economic Commission for Latin America. Trade Com-
mittee. First session, Santiago, Chile, 19-29 November
1956. E/CN.12/C.l/7/Rev. 1, December 2, 1956. 78
lip. mimeo.

Economic Commission for Asia and the Far East. Ac-
tivities in the Field of Flood Control and Water Re-
sources Development. December 1955-November 1956.
E/CN.11/440 (E/CN.ll/Flood/16), December 27, 1956.
17 pp. mimeo.
Economic Commission for Asia and the Far East.
UNESCO Activities in 1956 and Work Plans for 1957 of
Interest to the Economic Commission for Asia and the
Far East. Report by the United Nations Educational,
Scientific and Cultural Organization. E/CN.11/442,
January 28, 1957. 24 pp. mimeo.
Economic Commission for Asia and the Far East. Com-
mittee on Industry and Trade. Report of the Inter-
Secretariat Working Party on Trained Personnel for
Economic Development (Sixth Meeting) to the Com-
mittee on Industry and Trade (Ninth Session).
E/CN.11/I&T/131, February 5, 1957. 84 pp. mimeo.
Elconomic Development of Under-Developed Countries.
Co-operatives. Report by the Secretary-General under
Economic and Social Council resolution 512.C.II
(XVII). E/2950, February 6, 1957. 54 pp. mimeo.
United Nations Sugar Conference 1956. International
Sugar Agreement of 1953 as amended by the protocol
opened for signature at London on 1 December 1956.
E/Conf.22/8, February 7, 1957. 24 pp. printed.
Commission on the Status of Women. Part-Time Employ-
ment. Report prepared by the International Labor
Office. E/CN.6/299, February 7, 1957. 5 pp. mimeo.
Commission on the Status of Women. The Employment
of Older Women Workers. Report prepared by the
International Labor Office. E/CN.6/298, February 7,
1957. 44 pp. mimeo.
Economic Commission for Asia and the Far East. United
Nations Technical Assistance in Asia and the Far East
1956. E/CN.11/443, February 8, 1957. 25 pp. mimeo.

TREATY INFORMATION

Current Actions

MULTILATERAL

Finance

Articles of agreement of the International Finance Cor-
poration. Done at Washington May 25, 1955. Entered
into force July 20, 1956. TIAS 3620.
Signature: Union of South Africa, March 26, 1957.
Acceptances deposited: Union of South Africa, April 3,
1957 ; Chile, April 15, 1957.

International Court of Justice

Statute of the International Court of Justice (59 Stat.

1055).

Declaration recognizing compulsory jurisdiction de-
posited: Sweden, April 6, 1957.' Effective for a pe-
riod of 5 years from that date, and thereafter for suc-
cessive 5-year periods subject to notice of abrogation
at least 6 months before the expiration of any such
period.

Trade and Commerce

Agreement on the Organization for Trade Cooperation.

Done at Geneva March 10, 1955.°

Signature: Denmark, April 5, 1957.
Protocol amending part I and articles XXIX and XXX

of the General Agreement on Tariffs and Trade. Done

at Geneva March 10, 1955.'

Signature: Denmark, April 5, 1957.
Protocol amending the preamble and parts II and III

of the General Agreement on Tariffs and Trade. Done

at Geneva March 10, 1955."

Signature: Denmark, April 5, 1957.
Protocol of organizational amendments to the General

Agreement on Tariffs and Trade. Done at Geneva

March 10, 1955."

Signature: Denmark, April 5, 1957.
Proems verbal of rectification concerning the protocol'

amending part I and articles XXIX and XXX, the

protocol ' amending the preamble and parts II and

III, and the protocol ' of organizational amendments

to the General Agreement on Tariffs and Trade. Done

at Geneva December 3, 1955.'

Signature: Denmark, April 5, 1957.

BILATERAL

Germany

Agreement on the model contract containing standard
contract clauses referred to in article 16 of the agree-
ment of April 4, 1955, relating to offshore procurement
(TIAS 3755). Effected by exchange of notes at Bonn
April 4, 1955. Entered into force February 7, 1957.

Guatemala

ISefsearch reactor agreement for cooperation concerning
civil uses of atomic energy. Signed at Washington
August 15, 1956.

May 73, 7957

' Applicable only in respect of disputes arising vpith re-
gard to situations or facts subsequent to Apr. 6, 1947.
' Not in force.

789

Entered into force: April 22, 1957 (day on which each
Government received from the other written notifi-
cation that it had complied with statutory and con-
stitutional requirements).

Japan

Agreement providing for Japan's financial contributions
for United States administrative and related expenses
during the Japanese fiscal year 1957 under the mutual
defense assistance agreement of March 8, 1954 (TIAS
2957). Effected by exchange of notes at Tokyo April
19, 1957. Entered into force April 19, 1957.

Korea

Air Transport Agreement. Signed at Washington April
24, 1957. Entered into force April 24, 1957.

United Kingdom

Agreement amending the agreement of July 21, 1950, re-
lating to the Bahamas Long Range Proving Ground
(TIAS 2099). Effected by exchange of notes at Wash-
ington April 1, 1957. Entered into force April 1, 1957.

DEPARTMENT AND FOREIGN SERVICE

Confirmations

The Senate on April 8 confirmed Francis H. Russell to
be Ambassador to New Zealand. (For biographic details,
see press release 171 dated March 22.)

The Senate on April 17 confirmed Gerald A. Drew to be
Ambassador to Haiti. (For biographic details, see press
release 158 dated March 18.)

Designations

otto F. Otepka as Deputy Director, Office of Security,
effective April 7.

Howard P. Jones as Deputy Assistant Secretary for
Far Eastern Affairs, effective April 21.

Resignations

Joseph Simonson as Ambassador to Ethiopia. (For text
of Mr. Simonson's letter to the President and the Presi-
dent's reply, see White House press release dated
April 11.)

PUBLICATIONS

Recent Releases

For sale by the Superintendent of Documents, U.S. Gov-
ernment Printing Office, Washington 25, D. C. Address
requests direct to the Superintendent of Documents, ex-
cept in the case of free publications, which may be ob-
tained from the Department of State.

Foreign Affairs. Pub. 6443. General Foreign Policy
Series 113. 12 pp. Limited distribution.

A pamphlet containing excerpts from President Eisen-
hower's state of the Union message, January 10, 1957.

Highlights of Foreign Policy Developments — 1956. Pub.
6451. General Foreign Policy Series 115. 19 pp. 15^.

A new release in the Background series prepared as a
readily accessible source for reference to some of the
major events and pronouncements affecting U.S. foreign
policy during calendar year 1956.

NATO — Its Development and Significance. Pub. 6467.
General Foreign Policy Series 116. 61 pp. 30^.

A pamphlet giving information concerning the origin, pur-
poses, organization, and accomplishments of the North
Atlantic Treaty Organization. Two appendixes contain
the texts of the Report of the Committee of Three on Non-
Military Co-operation in NATO and the North Atlantic
Treaty.

The General Agreement on Tariffs and Trade — Negotia-
tions Under the Trade Agreement Act of 1934 as Amended
and Extended. Pub. 6470. Commercial Policy Series
162. 9 pp. Limited distribution.

A pamphlet giving notice of U.S. intention to negotiate
with certain contracting parties to the General Agreement
on Tariffs and Trade, a list of products to be considered,
and notice of public hearings by the Committee for Reci-
procity Information.

Surplus Agricultural Commodities. (Corrected print.)
TIAS 3697. 5 pp. 5<J.

Agreement between the United States of America and
Turkey — Signed at Ankara November 12, 1956. Entered
into force November 12, 1956. J

Passport Visas. TIAS 3743. 4 pp. 5^. "

Agreement between the United States of America and
Ceylon. Exchange of notes — Dated at Colombo August
25 and September 7, 1956. Entered into force September
7, 1956.

790

Department of Sfofe Bulletin

May 13, 1957 I n

Asia

The U.N. Economic Commission for Asia and the

Far East (Kotschnig) 780

South Pacific Commission (delegation) .... 778

Canada. U.S.-Canadian Negotiations on Potato

Tariffs 773

Chile. United States Supporting Chile's Stabiliza-
tion Effort (White) 773

China, Communist

Question of Trade Embargoes Against Communist

China 772

Secretary Dulles' News Conference of April 23 . . 765

Congress, The. Congressional Documents Relat-
ing to Foreign Policy 774

Department and Foreign Service

Confirmations (Drew, Russell) 790

Designations (Jones, Otepka) 790

Resignations (Simonson) 790

Disarmament

Briefing on Negotiations of Disarmament Subcom-
mittee 772

Reaffirmation of U.S. Policy on Disarmament

(Hagerty) 772

Secretary Dulles' News Conference of April 23 . . 765

Economic Affairs

Mr. Allyn Confirmed To Be U.S. Representative to

ECE 779

GATT Intersessional Committee To Meet at

Geneva 779

Economic Commission for Europe (delegate) . . 779
Question of Trade Embargoes Against Communist

China 772

The U.N. Economic Commission for Asia and the

Far East (Kotschnig) 780

U.S.-Canadian Negotiations on Potato Tariffs . . 773
United States Supporting Chile's Stabilization

Effort (White) 773

Egypt

Secretary Dulles' News Conference of April 23 . . 765

Security Council Resumes Consideration of Item

on Suez Canal (Lodge, Fawzi, Hammarskjold) . 775

Ethiopia

Ambassador Richards' Mission to the Middle East

(texts of communiques and press statement) . . 763
Resignations (Simonson) 790

Europe

Economic Commission for Europe 779

Mr. Allvn Confirmed To Be U. S. Representative to

ECe" 779

Haiti. Drew confirmed as ambassador .... 790
International Organizations and Conferences
Economic Commission for Europe (delegate) . . 779
GATT Intersessional Committee To Meet at

Geneva 779

South Pacific Commission (delegation) 778

Iran. Iran: An Appreciation (Chapin) .... 759
Laos. U.S. Reaffirms Support for Lao Govern-
ment (text of note) 771

Middle East

Ambassador Richards' Mission to the Middle East

(texts of joint communiques) 763

The Aliddle Eastern Policy of the United States

(Rountree) 755

New Zealand. Russell confirmed as ambassador . 790
Non-Self-Governing Territories. South Pacific

Commission (delegation) 778

Publications. R«cent Releases 790

Sudan. Ambassador Richards' Mission to the Mid-
dle East (texts of communiques and press state-
ment) 763

Treaty Information. Current Actions 789

U.S.S.R. Secretary Dulles' News Conference of

April 23 765

d e X Vol. XXXVI, No. 933

United Nations

Current U.N. Documents 788

Economic Commission for Eui-ope (delegate) . . 779
Mr. Allyn Confirmed To Be U.S. Representative to

ECE ". '^'^^

Security Council Resumes Consideration of Item on

Suez Canal (Lodge, Fawzi, Hammarskjold) . . 775
The U.N. Economic Commission for Asia and the

Far East (Kotschnig) 780

Viet-Nam. President of Viet-Nam To Visit U.S. . 771
Yemen. Ambassador Richards' Mission to the Mid-
dle East (texts of communiques and press state-
ment) '^63

name Index

Allyn, Stanley C 779

Chapin, Selden 759

Diem, Ngo Dinh 771

Drew, Gerald A 790

Dulles, Secretary 765

Fawzi, Mahmoud 775

Hagerty, James C 772

Hammarskjold, Dag 775

Jones, Howard P 790

Kotschnig, Walter M 780

Lodge, Henry Cabot 775, 776

Otepka, Otto F 790

Richards, James P 763

Rountree, William M 755

Russell, Francis H 790

Simonson, Joseph 790

White, Lincoln 773

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

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

Release issued prior to April 22 which appears in
this issue of the Bulletin is No. 192 of April 5.
No. Date Subject

230 4/22 GATT Intersessional Committee (re-
write).
t231 4/22 FSI Advisory Committee (rewrite).
*232 4/22 Educational exchange.

233 4/22 U.S.-Sudan communique on Richards

talks.

234 4/23 U.S. representative to 12th session of

ECE (rewrite).

235 4/23 Richards press statement, Yemen.

236 4/23 U.S.-Ethiopia communique on Richards

talks.

237 4/23 Dulles: news conference.

t238 4/24 Air transport agreement with Korea.
239 4/24 U.S. note to Laos.
1240 4/24 Kalijarvi : "The Road Ahead for For-
eign Trade Policy."

241 4/24 Lodge letter requesting Security Coun-

cil discussion of Suez Canal.

242 4/24 Delegation to South Pacific Commis-

sion review conference (rewrite).
t243 4/24 Delegation to NATO Ministerial Meet-
ing.
*244 4/24 Inter-American Committee of Presi-
dential Representatives.
245 4/24 Rountree: "The Middle Eastern Pol-
icy of the United States."
t246 4/25 Berding: "The Public Relations of
Dynamic Peace."
247 4/25 Visit of President Diem of Viet-Nam
(rewrite).
t248 4/25 U.S. reply to Hungarian note on Capt.
Gleason.
249 4/26 Lodge: statement on Suez Canal.

♦Not printed.

t Held for a later issue of the Bulletin.

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OFFICIAL BUSINESS

A Case History of Communist Penetration
GUATEMALA

• •

the

Department

of

State

The "lesson of Guatemala" brought home to the Americas the
realization that international communism, over a long period of time,
has been developing plans to penetrate this hemisphere, to create
conditions leading to civil strife, and to work for the dissolution of
the inter-American system. In Guatemala communism had in fact
seized control of the Govermnent.

A Case History of Communist Penetration — Guatemala, a 73-
page pamphlet, discusses the social and political climate leading to
Communist infiltration of the coimtry, the begiiming organizations
and later the coming into the open of the Communist Party, the
eventual success of the anti-Communist forces of liberation, and the
aftermath of the revolution. Included is the text of the important
Caracas Declaration of Solidarity for the Preservation of the Polit-
ical Integrity of the American States Against International Com-
munist Intervention.

The pamphlet also contains a listing and brief description of
the principal political parties, labor unions, federations, and syndi-
cates, other mass organizations, and individuals playing a part in
the series of events.

Copies of this publication may be purchased from the Superin-
tendent of Documents, U.S. Government Printing Office, Washing-
ton 25, D.C., for 30 cents each.

Publication 6465

30 cents

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Washington 25, D.C.

Please send me copies of A Case History of Communist Penetra-
tion— Guatemala.

Enclosed And: '

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(cash, cheek, or City, Zone, and State:

money order).

THE DEPARTMENT OF STATE

/ rj o u

Vol. XXXVI, No. 934

May 20, 1957

APPEAL FOR PARTIAL RESTORATION OF
PROPOSED CUTS IN STATE DEPARTMENT

APPROPRIATIONS • Statement by Secretary Dulles . 795

A NEW APPROACH TO MUTUAL SECURITY •

bv Deputy Under Secretary Dillon 800

THE ROAD AHEAD FOR FOREIGN TRADE POLICY

• by Assistant Secretary Kalijarvi 813

THE PUBLIC RELATIONS OF DYNAMIC PEACE •

by /Assistant Secretary Berding 805

AIR TRANSPORT AGREEMENT BETWEEN UNITED
STATES AND REPUBLIC OF KOREA • Dcpariment

Announcement and Text of Agreement 825

For index see inside back cover

Boston Public Library
Superintcn''"nt of Oncumetits

JUL 1 6 1957

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 934 • Publication 6495
May 20, 1957

For sale by the Superintendent o( Documents

U.S. aovernment Printing Office

Washington 25, D.C.

Price:

52 issues, domestic $7.60, foreign $10.26

Single copy, 20 cents

The printing of this publication has been
approved by the Director of the Bureau of
the Budget (January 19, 1965).

Note: Contents of this publication are not
copyrighted and items contained herein may
bo reprinted. Citation of the Department
OF St.*te Bulletin as the source will be
appreciated.

The Department of State BULLETIN,
a weekly publication issued by t}ie
Public Services Division, provides the
public and interested agencies of
the Government mith information on
developments in the field of foreign
relations and on the work of the
Department of State and the Foreign
Service. The BULLETIN includes se-
lected press releases on foreign policy,
issued by the White House and the
Department, and statements and ad-
dresses made by the President and by
the Secretary of State and other
officers of the Department, as trell as
special articles on various phases of
international affairs and the func-
tions of the Departm.ent. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

Publications of the Department,
United Nations documents, and legis-
lative material in the field of inter-
national relations are listed currently.

Appeal for Partial Restoration of Proposed Cuts
in State Department Appropriations

Statement hy Secretary Dulles'^

I come liere to appeal with respect to $29,228,-
000 of $47,331,000 which the House of Represent-
atives would cut from the $227,714,000 appro-
priation that the President requested to enable
the State Department to conduct our foi'eign re-
lations during the coming year.

The President has said that each Department
would publicly state whether it could absorb cuts
proposed by the Congress or whether it felt such
cuts would be harmful to services rendered to
people by the Federal Government. We believe
that $18,103,000 of the proposed cuts can be ab-
sorbed. They represent highly desirable expendi-
tures. But certain building operations and spe-
cial events can be postponed without serious
hai-m. With respect to $29,228,000 of the pro-
posed cuts, there would be harm to the Nation
which, in the opinion of the President and my-
self, would be real and grievous.

Under our Constitution the President has the
primai-y responsibility for making and carrying
out the foreign policy of the United States. It
is his conviction, as it is mine, that tlie foreign
policy required to maintain peace and freedom
cannot be carried out with adequate effectiveness
if this $29 million cut by the House of Repre-
sentatives is maintained.

Never before in history has a nation had the
degree of worldwide responsibility for the main-
tenance of peace that is now carried by the United
States. Our responsibilities are mounting almost
daily. Wliether or not tliey can be adequately
discharged depends not just upon the broad prin-

' Made before a subcommittee of the Senate Committee
on Appropriations on Apr. 30 (press release 255).

ciples proclaimed by America's leaders. It de-
pends directly upon the performance of those
who, in the Department of State and in 81 coun-
tries, carry on the day-by-day task of waging
peace and defending freedom.

Theirs is a hard task, one that is seldom dra-
matic. Their devotion in representing America,
their skill and training in the task of explaining
our purposes and prevailing upon others to share
those purposes, their everlasting dedication to the
cause of peace with justice, are all vitally im-
portant to the welfare and safety of each of us.
They make efforts and sacrifices in the service of
our country that have no reward except a knowl-
edge of duty well done. And the success of those
efforts is the sparing to our country of the in-
finitely greater costs and sacrifices that would be
involved if war were to occur. But their efforts
will not prevail if they are inadequate in num-
bers and training and if they lack essential fa-
cilities for gathering and communicating infor-
mation.

If the House cuts were to stand, they would
require us :

To cut our personnel by abolishing some 700
positions when expansion is needed to meet grow-
ing responsibilities and relieve excessive strains.

To cut the use of cable commimications when
it is pecidiarly necessary that there be intimate,
prompt, and full communication between the De-
partment of State and those in the field.

To cut our allowances to field officers for in-
formal contacts when more than ever diplomacy
depends upon such contacts.

To cut tlie training of our officers, notably in

Moy 20, J957

795

languages, when there is more than ever need to
communicate directly with those who speak other
tongues.

The total eflfect of these cuts would be to
breach gravely the front line of our defense of
peace and freedom in the world. Both the Presi-
dent and I believe that the disparity has never
been so great between the amount to be saved
and the risk to be assumed.

Growing Responsibilities in Diplomatic Relations

Before dealing specifically with such aspects
of the problem, I should like to illustrate the
upward trend of our international responsibili-
ties.

( 1 ) The number of nations with which we have
to deal is rapidly increasing. Since 1945 there
are 19 new nations and the 20th (Malaya) will
proclaim its independence at the beginning of
our next fiscal year. Several othei-s have liad
their sovereignty made more nearly complete.
The membership of the United Nations has grown
from 51 in 1945 to 81 at the present time.

(2) Each of these nations has today its own in-
dependent importance. Once, only a few mis-
sions were really important. But today virtually
every nation presents challenging problems where
failure of our diplomacy in any one could have
a chain reaction.

(a) We now have collective defense relations
with 42 nations, and the area of collective de-
fense may be further increased under the recent
Middle East resc lution.

(b) The less-developed countries of Asia,
now including a dozen newly independent
nations, are increasingly alert and sensitive to
their opportunities and responsibilities.

(c) The Soviet bloc of countries in Europe is
no longer wholly sealed off. There are growing
possibilities in diplomatic relations.

(3) The government which principally chal-
lenges freedom and which principally endangers
the peace — that of tlie Soviet Union — has been
rapidly enlarging its diplomatic service. Be-
tween 1953 and 1957 it has more than doubled its
officially accredited governmental representatives
in Western Europe, the Middle East, and the
Americas (Western Europe from 840 to 1,998;
the Middle East from 454 to 836; the Americas
from 360 to 554) .

(4) An indication of our mounting responsi-
bilities is the volume of telegraph traffic. It will
total about 35 million word groups in the current
fiscal year, as against 21 million word groups in
fiscal year 1953.

(5) Passport applications increased by 37 per-
cent between fiscal year 1953 and fiscal year 1957,
and visas issued by the Foreign Service during the
same period increased by 47 percent.

(6) An entire continent — Africa — is looming
larger and larger as a vital area of the future, and
international communism intensively seeks to
master the awakening spirit of its people.

In the face of a threat to peace and freedom
which all must admit to be grave, the United
States, through historical evolution, has the pri-
mary responsibility of maintaining such volun-
tary cohesion in the free world that its members
will not one by one be taken over by international
connnunism. That task, as delicate and difficult
as it is vital, is the high task of the Department
of State and the Foreign Service.

The entire appropriation which the Depart-
ment of State seeks amounts to about one-third of
one percent of the total United States budget.
But we recognize that there must be economy
wherever it can be achieved. Therefore, of the
$47 million of cuts voted by the House, we accei)t
$18 million. This $18 million, relating to build-
ing activities and special events, althougli desir-
able, can be postponed without impairing vital
interests. But the balance of tlie proposed reduc-
tion, $29 million, would be a false economy, not
compatible with the peace and security of the
United States.

Let me now take up some of the specific items.

Salaries and Expenses

The Department of State is requesting $112
million for salaries and expenses. The House has
cut this amount by nearly $19 million to about the
1957 figure. The House report implies that this
would leave the Department and the Foreign
Service in a budgetary position no worse than in
fiscal year 1957. That is not the case. If the De-
partment is to maintain in fiscal year 1958 merely
its present level of operations, approximately $6.3
million more will be required than was appropri-
ated for 1957. This results from such factors as
increases in costs of wages and rents abroad and
the necessity to pay for a full year tlie salaries of

796

Departmenf of Stale Bulletin

those employees — if they are to be retained — who
(lid not draw a full year's salary during 1957 be-
<:iuse they were recruited at various times during
that year.

However, it is not good enough merely to stand
slill at the present level. In the face of growing
n'sponsibilities, we do not have the personnel,
facilities, and, in certain instances, the skills to
perform with necessary eli'ectiveness the tasks im-
posed upon us.

Too many people have to work overtime in the
Department of State and the Foreign Service.
We do not regularly keep track of overtime. But
the Bureau of Far Eastern Affairs reports a grand
total of 119 years of uncompensated overtime per-
formed in Washington in the past 21/^ years and
in the field in tlie past year and one-half. This
is typical. It is bad for health and efficiency. It
places excessive strains upon our staff, and that is
dangerous not just for them but for the Nation.

If the action taken by the House is accepted by
the Senate, the Department will suffer from
handicaps such as the following :

( 1 ) We shall have to cut, somewhere, somehow,
about 700 present positions.

(2) We shall not be able to obtain the increased
coverage needed in the vital areas of the Middle
East and Africa.

(3) We shall not be able to keep pace with
political and economic developments in the Far
East, where the Chinese Communist regime daily
steps up its efforts to frighten and subject those
neighboring nations whicli are free.

(4) We shall have to cut, rather than increase,
the speed and scope of communication between
Washington and our overseas missions. That
need was illustrated last week in relation to Jor-
dan. Communications to our Embassy there of
highest priority involved delays of upwards of 24
hours because of inadequate decoding facilities.
One cable received last week from our Ambassador
in Jordan contained this paraphrased language:
"I learn through the Ambassador of . . ., who
is kept informed by his Embassy in Washington,
that there is a proposal for . . . ."

Such dependence of our ambassadors upon for-
eign embassies is frequent. It is not due to our
inattention but to the need to economize in terms
of cable expense. There is need for more funds
to spend on cables and for additional commimi-
cation facilities to meet possible emergencies.

These facilities must be provided in advance of,
and not after, the emergency which calls for
them.

(5) We shall not be able to meet the steadily
increasing need for travel of our foreign repre-
sentatives for home and regional consultations.

(6) We shall not be able to meet our responsi-
bilities for leadership by advance planning. The
complaint is sometimes made that tlie State De-
partment does not do sufficient advance planning.
There is more than is known. Nevertheless, I
recognize that there should be still more. But
we cannot do more forward and contingent plan-
ning when our personnel is inadequate even to
meet the pressing needs of day-by-day events.

(7) We shall not be able to implement the pro-
visions of law which would provide assistance for
meeting the costs of medical expenses incurred
by Foreign Service officers on behalf of their
dependents.

(8) We shall be unable to assist in the estab-
lishment and maintenance of welfare facilities
at the more isolated and unhealthful hardship
posts where no suitable facilities exist.

(9) We shall not be able to provide a reason-
able transfer allowance to employees for certain
costs which they sustain solely because they move
in the interests of the United States under gov-
ernment orders.

(10) We shall be unable to advance our pi-o-
gram of recruiting into the Department and the
Foreign Service the best products of the colleges
and universities. In 1956, there were 12,500 qual-
ified applicants for entry into the Foreign Serv-
ice. This compares with about 1,500 a few years
ago. It is immensely important that higlily qual-
ified young men and women pick the Foreign
Service as a career. But this enthusiasm can-
not be sustained if we have to close down on
accepting and training new recruits.

The preceding recital is inadequate in that it
deals largely with specific problems in specific
areas. Much of the impact of the budget cut
for salaries and expenses would not be subject to
such measurements. Its impact will permeate the
entire Department from top to bottom, and the
Foreign Service in every corner of the world.
It will, I fear, depress the high morale of the
personnel of the Department and the Foreign
Service.

These men and women for the most part are

Moy 20, J 957

797

inspired by a sense of patriotism. They work
not for themselves but for their country. Dur-
ing recent years, as I have visited upwards of 40
countries, I have made it a point to meet and
talk with our mission staffs. On each such occa-
sion I have assured them that the President, the
Congress, and the Nation respected and appre-
ciated their efforts for peace and freedom in the
world. It is my plea that the vote of the House
be not the final verdict of the Congress.

Foreign Service Institute and Training for Foreign
Service

We seek approximately $5 million, or 2i^ per-
cent of the State Department's total budget, for
the Foreign Service Institute and our training
program. Of this, about $3 million goes to pay-
ing the salaries and expenses of the trainees and
about $2 million is actual training costs.

Practically all the increase requested for actual
training costs — an increase of $650,000 — is to pro-
vide training in one of the so-called world lan-
guages. Today fully one-half of our officers do
not have useful knowledge of French, Spanish,
or German. Approximately 70 percent of the
new officers entering the Service do not have a
"useful" knowledge and facility in any foreign
language.

A few years ago it was found necessary to
relax the language requirements for entry into
the Service because, generally speaking, our high-
school and college educational system does not
produce students able to speak foreign languages.
But this makes it the more imperative that we
ourselves provide language facilities for those
who elect to enter the Foreign Service.

The usefulness of officers without language
skills is limited, particularly at the lower level.
It is imperative that this situation be remedied.

Representation Appropriation

I turn now to the matter of the representa-
tion appropriation. The Department is request-
ing $1 million for fiscal year 1958. The House
has cut this request, in effect, to $672,800. I
wonder how many recall that a decade ago, in
1947, the Congress allowed $800,000 for this item.
In terms of comparative purchasing power the
retrogression is even greater than the dollar fig-
ures indicate. The value of the representation
dollar has declined by at least 25 percent since

1947. And there will be at least 11 more mis-
sions in 1958 than in 1947.

The debate in the House on this item gave
rise to some levity. It is, I submit, no laugh-
ing matter. To an increasing degree diplomacy
is conducted outside of the office and outside of
office hours. This involves receiving and return-
ing social invitations, participating in local ac-
tivities, and the like.

Today officers without private means cannot do
this adequately; and even if they do have pri-
vate means, they should not have to meet these
costs out of their own pockets.

I recently noted the following statement in A
Century of American Diplomacy, written by my
grandfather, John W. Foster, over 50 years ago :

It may be said to the credit of the Congress [in 1782]
that ... it made liberal allowances to its diplomatic
representatives abroad, considering the poverty of Its
treasury and the large demands upon it for the conduct
of the war. Tlie annual allowances to Dr. Franklin and
Messrs. Adams and Jay were over $11,000 each — a more
liberal sum than is granted to our representatives at
those capitals today, if the relative cost of living is taken
into consideration.

International Contingencies

The House has cut our request for the inter-
national contingencies appropriation from $2.5
million to $1.5 million. This is the fund out of
which the United States pays the cost of its par-
ticipation in all international conferences. In the
nature of the case the precise timing and duration
of these conferences cannot be foreseen because
they depend upon circumstances in part beyond
the control of the United States. Nevertheless
we do know with approximate certainty the num-
ber and character of conferences which will be held
in the current fiscal year, and these alone accord-
ing to our estimate will require $2,185,000 of the
$2.5 million for which we have asked, leaving only
$315,000 to take care of the unforeseen emergencies
which experience indicates will arise. The amount
allowed by the House action is the same as that
available to us for this fiscal year. This we have
found to be sadly deficient, as proved by our
supplemental request now pending for $450,000.

International Educational Exchange

The Department requested $30 million for the
international educational exchange appropriation
for 1958. This, together with local currencies

798

Department of Stale Bulletin

growing out of P. L. 480, would have permitted
an overall program of approximately $35 million.
The House approved an appropriation of
$17,575,000 and suggested that with local cur-
rencies this would permit a program equivalent
to this year's program, which was already below
the level for which we had hoped. While this is
true as an overall generalization, this cut would,
in practice, not permit the operation of a program
similar to this year's because foreign currencies
can be used in only 33 countries and dependent
areas. The programs in the other 54 countries
and dependent areas that depend entirely on
dollars would have to be cut on an average 35 per-
cent below the present level and 65 percent below
the planned level.

International communism shows, in at least one
respect, a wisdom which the democracies often
seem to lack. They pay much attention to long-
range programs. They think not just in terms of
the immediate morrow but also of results obtain-
able in a coming generation. They pay great
attention to opinion-forming persons and par-
ticularly to those who teach and train the youth.

The Department's educational exchange pro-
gram does not begin in its scope or cost to match
the comparable programs of international com-
munism. It does represent an indispensable
mmimum effort to insure a better understanding
over the years ahead as between the free nations.
This program is a vital one in laying a dependable
foundation for the interdependence upon which
an enduring peace depends.

Miscellaneous

I shall not, in this oral statement, make specific
reference to other actions taken by the House
with respect, for example, to the appropriation for
missions to international organizations and the
several international commissions. Others will
discuss these and two other items of particular

interest to the State Department in the President's
special international program, namely, the cul-
tural and sports presentation item and the Brus-
sels Exhibition appropriation. I should like to
make it clear, however, that in all of these I feel
that it is necessary for the Senate to restore the
House cuts.

I also urge that the Congress continue to give
the Department the degree of flexibility which
it has heretofore had in expending the funds ap-
propriated to us. This is particularly pertinent
in the salaries and expenses appropriation. Our
budget processes require that we prepare our es-
timates from 6 to 18 months in advance of our
expenditures. It is impossible for us to forecast
accurately world developments to an extent that
would permit us to pinpoint so far ahead what
our precise needs are. It is necessary, therefore,
that we have reasonable flexibility in the matter
of shifting funds, for example, originally intended
for personnel to equipment items, and vice versa.

In conclusion, let me say this :

The world is constantly becoming more complex.
Also, the danger which could result from matters
going wrong is becoming infinitely great; indeed
it surpasses human comprehension. It is con-
current with the development of this nuclear age
that the United States must carry an increasing
share of the responsibility for peace.

Each of the members of this subcommittee is, I
know, aware of the international problems that we
face and the difficulty of dealing with them. I
am confident that you will agree that no invest-
ment that the people make in their government
pays so high a return as the modest investment
required to maintain an adequate and efficient
State Department and Foreign Service. That
is the best guaranty that our people will, in the
words of our Constitution, enjoy in peace the
blessings of liberty.

May 20, 1957

799

A New Approach to Mutual Security

hy Douglas Dillon

Deputy Under Secretary for Economic Affairs ^

During the past year our programs of mutual
security have been going tlirough a period of
critical I'eexaniination. The complexity of these
programs has made them difficult for the Ameri-
can people to understand. There has grown up
in many quarters the mistaken impression that
the United States, in an attempt to please foreign
coimtries and without adequate thought for its
own best interests, has been busy giving away
some $4 billion a year of our taxpayers' money.

Of course nothing could be further from the
truth, but there is no denying that this is wliat
foreign aid means to many Americans.

There has also grown up in some quarters a
feeling that our economic aid programs may not
have been administered in the most effective man-
ner possible, that there may have been unneces-
sary waste in the use of Government funds
abroad.

All this has led to a widespread and tliorough-
going review of our programs for mutual security.
This is as it should be, for tliese are complex and
costly programs.

Studies have been made by a Presidential com-
mission, a Presidential advisory board, the
Foreign Affairs Conunittee of the House, a special
Senate committee, and by the interested executive
agencies of the Government. Universities, busi-
ness groups, and researc^li institutions have been
studying and debating the subject. Tliis current
meeting of the American Assembly is but one of
many serious attempts by groui)s of private citi-
zens to find the riglit answer to this question
which is so important to the future of the Ameri-
can people.

^ Address mnde bofore tlio American Assembly, at
Harrlman, N. Y., on May 2 (press release 259).

In short, this effort at reappraisal has involved
not only officials in Washington but also a great
many of our most distinguished private citizens,
of whom some of the wisest are in tliis room
toniglit.

It is our hope that as a result of all this in-
terest, both public and private, the way can be
found to redefine, clarify, and simplify the pro-
gram so that all our people can have confidence
that we are pursuing the right objectives in the
right way.

General Guidelines

Are tliere any general guidelines tliat we can
draw from all this study and thought? Is there
any real consensus? The answer is certainly
"Yes." Two general conclusions are found in all
the reports and studies; they are sometimes ex-
pressed with greater or lesser vigor, but thej- are
always present.

First and most important, there is agreement
that the continuation of a mutual security' pro-
gram is in the best interests of the United States
and that we will have to maintain such a pro-
gram for a long time to come. So long as inter-
national communism exists in its present form,
challenging our very existence, either by direct
militaiy threats or by economic penetration and
subversion, so long as the explosive demands for
economic jirogress in the underdevelojied coun-
tries threaten the very existence of free and demo-
cratic institutions in those countries, we must
maintain some form of mutual security program.

The second general conclusion of all the studies
is that tiiere is need for greater clarity in defining
what tlie mutual securit_y program actually is.
Botli the objectives of tlie program and ti>e ways

800

Department of State Bulletin

in which we move to achieve these objectives must
be widely uiidei-stood by the American people,
or the program itself will not be supported.

Wliat is the reason for all tliis confusion about
the mutual security program!' The answer is
simple. We have in the past lumped tightly to-
gether under the heading of "mutual security" a
bundle of diverse programs, a package with a
broad variety of contents. For example, during
the last 6 years mutual security has meant 44,000
artillery pieces, 40,000 tanks and combat vehicles,
and 7,000 aircraft for the military forces of our
allies. It has meant loans to build dams, roads,
and harbors. It has also meant teclinical assist-
ance, such as telling people how to plow, or how
to kill mosquitoes so as to avoid malaria.

All of these things, involving an expenditure of
approximately $4 billion, have been lumped to-
gether in our budget. It has been difficult, if not
impossible, for the American people to know just
what part of these funds were going for military
purposes, what part for long-term capital de-
velopment, and what part for technical assistance
or for meeting unforeseeable emergencies.

In view of the complexities of this program, it
is easy to imderstand why there is public con-
fusion. Our major efforts are now being devoted
to finding a better way to present the program
so as to clearly explain its purposes to the Ameri-
can people wliile at the same time assigning ma-
jor responsibility for the various paits of the pro-
gram to the agencies which should have that re-
sponsibility.

The general lines of this new approach were
first announced by Secretaiy of State Dulles on
April 8th in his testimony before the special Sen-
ate committee.^ The President will send the
completed proposal to the Congress later this
month. Tonight I would like to give you a brief
review of our current thinking.

Military Assistance

First, let us look at the military portion of the
mutual security program. It is by far the largest.
It includes two kinds of funds.

The first is for military hardware — the actual
guns, tanks, planes, etc., which we put into the
hands of the Koreans, the Vietnamese, the Nation-

• Bulletin of Apr. 29, 1957, p. 675.
May 20, 7957

alist Chinese, the Turks, and our other military
allies.

The second kind of funds are those required to
help those countries which maintain, for our com-
mon security, military forces larger than they
could otherwise support. This second form of
aid is called defense support. A good example of
defense support is the economic assistance we pro-
vide to Korea to assist in maintaining the 20 divi-
sions of Korean troops which are such an impor-
tant part of our joint defense against the Chinese
Communist threat.

About $2 billion, or Imlf of the present mutual
security appropriation, goes for military hard-
ware. Just under a billion dollars a year is re-
quired for defense support. None of this billion-
dollar figure goes to our Nato allies in Western
Europe. All of it goes to those of our allies who
are maintaining military forces larger than they
themselves can support. Thus we see that ap-
proximately $3 billion a year, or three-quarters of
our mutual security program, goes for military
purposes.

All of this military assistance, whatever it takes
to equip and maintain strong forces, is an integral
part of the defense of the free world and serves
the purpose of deterring Communist attack.
Admiral Eadford, Chairman of the Joint Chiefs
of Staff, put the matter plainly last year when he
said.

The military aid program is part and parcel of the
U.S. Defense Department program. The expenditures
abroad in support of our alliances do not differ in pur-
pose, scope, and objective from our own military expendi-
tures. . . . The fact that this part of our program was
not included in the Defense Department budget is more
a matter of procedure and administration than of sub-
stance.

Wliat we intend to do now is to change the pro-
cedure. Henceforth, we wish to place all funds
for foreign militai-y assistance in the Defense De-
partment budget where they can be recognized
for what they really are, part of the United States
military security program. We will recommend
that this sum of approximately $3 billion be taken
out of the mutual security appropriation bill and
be added to the funds which the Defense Depart-
ment has already requested for the Armed Forces
of the United States.

It is the Defense Department that must make
the military decision as to how many divisions
equipped with American arms are needed to de-

801

fend the Republic of Korea and other places
where we and our allies are facing Communist
troops. It seems only plain common sense for the
Defense Department to justify to the Congress,
and so to the American people, the cost of equip-
ping and maintaining these divisions.

On the other hand, the Defense Department is
not organized to do the actual day-to-day adminis-
tering of the defense support funds required to
maintain these allied troops. Although their pur-
pose is purely military, these funds are a form of
economic assistance. This assistance can best be
administered in the field by the same organization
which handles other forms of economic assistance.
Therefore, it is proposed that the administration
of these defense-support funds be carried out in
the field by the Ica, the International Coopera-
tion Administration, which presently administers
all United States economic assistance abroad.

Economic Aid

Now let us turn to the purely economic side of
the mutual security program, which goes pri-
marily to help the imderdeveloped countries of
the world. One may ask why should we, the
United States, be concerned with their economic
progress ?

All of the studies which have been made during
the past year agree that it is vitally important
for the United States to cooperate and assist in
the economic development of these countries,
whether or not they are allied to us militarily.

It is not hard to see why this is in the national
interest of the United States when one considers
the revolutionary changes that are taking place
in Asia and Africa today. There are 700 million
people in the 19 new nations which have come
into being since the end of World War II, rang-
ing in population from India, with nearly 400
million, to Libya with slightly more than 1 mil-
lion. Most of these people, and millions of others
in older countries, exist under primitive and back-
ward economic conditions, but modern communi-
cations have brought them the knowledge that
other people on their planet live in far greater
comfort and happiness. So these peoples are
pressing their governments to bring them eco-
nomic improvement and to do it rapidly.

If these underdeveloped countries find them-
selves unable to move toward the fulfillment of
their economic aspirations under free and demo-

cratic conditions, there is real danger of their
falling into some form of totalitarianism under
which the people would be forcibly deprived of
goods and freedom in an effort to achieve the goals
of the state. This is the solution offered through-
out the underdeveloped regions by the Com-
munists. They say that their system, and only
their system, can bring about the rapid economic
improvement so much desired. And they are ac-
companying this propaganda attack by an active
campaign of economic penetration and subversion
which poses a continuing threat to the stability
and peace of these vast and highly populated
regions of the world.

It seems clear that the national interest of the
United States would be best protected in a world in
which free institutions predominate and in which
popular aspirations for material improvement and
social change can be met by free and democratic
governments without recourse to forceful means.

Therefore, it is in our interest to do what we
can to help the underdeveloped peoples along and
so to make it easier for them to resist the Com-
munist drive. At the same time their advance
will help them to participate increasingly in
world trade to the benefit of all, including the
United States. However, our main motive in ex-
tending this sort of assistance is, I think, to fur-
ther our own enlightened self-interest by helping
to maintain a peacefully advancing world in
which free and democratic institutions can
flourish.

We believe that the best development comes
through private capital, domestic and foreign.
But within the regions we are talking about there
is simply not enough private capital available to
do the basic things that must be done. Technical
slrills are also lacking.

Our part is to supplement this dearth of cajiital
and know-how. Our effort is bound to bo small
compared to those of the countries themselves, but
we can help to stimulate the growth process until
such time as private capital and the increasing
resources of the people can take over. This, how-
ever, can only be a long-haul proposition. Good
business demands that we adopt the methods most
suitable for long-term operations.

Economic Development Fund

Therefore, the administration intends to pro-
pose the establishment within the Ii'a of an eco-
nomic development fund, which wovild be an

802

Department of Sfafe Bulletin

agency of the United States similar to the Export-
Import Bank.

Instead of the present method of setting dollar
figures for assistance to each country every year in
advance, instead of creating projects in Washing-
ton for construction all over the world, we would
expect foreign governments to develop sound
projects themselves and to apply for loans to cover
the costs of these projects. AVe would have the
time carefully to consider and examine the plans
for each project because we would no longer be
operating on only a year-to-year basis. After
thorough study we would decide each case on its
merits.

Loans would be granted only in cases where
there was assurance that the project would be car-
ried out competently and where there was reason-
able promise that it would contribute directly or
indirectly toward the growth of the productive
capacity of the recipient country.

The economic development fund would not com-
pete with the World Bank, the Export-Import
Bank, or with private sources of capital. Indeed,
we contemplate that it would make no loans until
assurance had been received that the projects
could not obtain financing either from other pub-
lic institutions or from private sources.

The economic development fund would differ
from the World Bank in that projects would not
necessarily have to develop the foreign exchange
required for prompt repayment in dollars. It is
probable tliat many of the loans from the develop-
ment fund would be repayable largely in the cur-
rency of the borrowing country. For example, a
loan to India might be repaid in rupees.

But this repayment in local currency would not
rule out possible eventual repayment in dollars.
For instance, suppose the fund makes a loan to an
underdeveloped country repayable in local cur-
rency over a period of, say, 15 or 20 years. After
the loan has been repaid, this money might well be
loaned again to the same government, but we could
reasonably hope that the economic situation of
that country would have so improved that it
would be possible for this second loan to be repaid
at least partly in dollars. In this way the great
bulk of such foreign currency loans could even-
tually be repaid in dollars.

The vital feature of the economic development
fund, differentiating it from the present method
of operation, is that it would have continuing and

flexible authority to operate on a worldwide basis
in the same way the Export-Import Bank now
does. It would not have to be authorized all over
again each year. Thus, it could plan ahead in
the same way that a businessman, a banker, a uni-
versity president, or a farmer can plan ahead.
This should result in far more efficient and effec-
tive use of United States funds.

The Export-Import Bank can only make loans
for the specific purpose of promoting U.S. ex-
ports. Its loans must be repayable in dollars.
The new fund would complement the operations
of the Export-Import Bank and of the World
Bank. It would be empowered to make subor-
dinated loans to support projects favored by these
two institutions.

As Secretary Dulles has said, it is our view
that loans by the new fund may eventually
amount to some $750 million a year. During the
next fiscal year, however, as the fimd gets into
operation, they could be expected to be consid-
erably smaller.

Aside from these funds for military purposes
and for economic development, there remains
something less than $500 million out of the $4 bil-
lion mutual security program total. These funds
would be used to cover administrative expenses,
the costs of the technical assistance program, and
our contributions to international activities such
as the International Children's Fund and aid to
refugees. They would also cover such eniergency
grants as might be found necessary and a strictly
limited amount of capital assistance for those
countries needing help and unable to contract fur-
ther loans of any sort.

The important point in all this is that the
American people should know that what we are
proposing to use, both for technical assistance
and in all other cases where grants will still be
necessary, comes to something less than $500 mil-
lion a year, a small percentage of the overall
amounts involved in our national budget.

Three Goals

By this new program, the basic outlines of
which I have just described, we hope to accom-
plish three things :

First, by centering budgetary responsibility for
the military portion of the program in the De-

May 20, 1957

803

fense Department, where it belongs, we will in-
sure that our military programs are as economical
as possible, consistent with the national security.

Second, by putting our economic development
largely on a loan basis, administered in a busi-
nesslike manner over the long term, we will pro-
vide more effective and economical use of these
funds so that the American people can be satis-
fied that they are not being wasted.

Third, and most important, we will clearly
sliow to all our people just what their money is
being spent for and why.

By such methods as these — and in my belief
only by such methods — can we hope to continue,
at maximum usefulness, a reasonable program of
mutual security. In closing, I would like to leave
one final reminder: This program is a vital in-
gredient of the platform of security from which
true peace will some day come.

U.S. Delegation Leaves
for NATO Council Meeting

Secretary Dulles' Departure Statement, April 30

Press release 256 dated April 30

I am leaving for Bonn to attend the Minis-
terial Meeting of the North Atlantic Council.
This will be the Council's first meeting in Ger-
many. The Council's decision to hold its spring
meeting in Bonn emphasizes the partnership of
the Federal Republic of Germany in this mutual
pact for peace.

The full exchange of views which occurs when
the foreign ministers of tlie 15 member nations
meet is always important. In the 5 months since
the Council met in Paris last December,^ a series
of events have occurred which make tliis excliange
all the more necessary. I am looking forward
to hearing the views of the other ministers and
to outlining our own.

Recent trends in Soviet policy in Europe and
the Middle East will be discussed. Although de-
fense ministers will not be present at this meeting,
certain political aspects of Western defense will
come up for discussion.

I am looking forward to renewing my associa-
tion with Chancellor Adenauer and Foreijrn Min-

' For text of communique Issued at close of meeting
oil Dec. 14, see Bulletin of Dec. 24 and 31, 1956, p. 981.

804

ister von Brentano, partly in preparation for their
welcome visit to Washington toward the end of
next month.

Following the Nato meeting in Bonn, I expect
to go to Paris to spend part of a day there meet-
ing with the American ambassadors in Europe.
This is an annual meeting of ambassadoi-s con-
voked to discuss mutual problems and will be
chaired by the Assistant Secretary of State, Mr.
C. Burke Elbrick. I expect to be back in Wash-
ington a week from today.

U.S. Delegation

The Department of State announced on April
24 (press release 243) that the U.S. Government
will be represented by tlie following delegation
at the Ministerial Meeting of the Nato Council
to be held at Bonn, Germany, May 2 and 3.

United States Representative

John Foster Dulles, Secretary of State

Special Assistant

Richard D. Drain

U.S. Permanent Representative to the North Atlantic
Trcutji Organization and European Regional Organi-
zations

George W. Perkins

Senior Advisers

Andrew H. Berding, Assistant Secretary of State for

Public Affairs
Robert R. Bowie, Assistant Secretary of State for Policy

Planning
David K. E. Bruce, American Ambassador to the Federal

Republic of Germany
C. Hurke Elbrick, Assistant Secretary of State for

European Affairs
Julius O. Holmes, Specisil Assistant to the Secretary of

State
G. Frederick Reinhardt, Coordinator, Counselor of the

Department of State
Mansfield D. Sprague, Assistant Secretary of Defense

for International Security Affairs

Adiusers

John H. F. Haskell, Director, Office of Defense .\ffairs.
United States Mission to the North .\tlantic Treaty
Organization and European Regional Organizations,
Paris

Frederick E. Nolting, .Tr., Director. Office of Political
Affairs, tUiited States Mission to the North Atlantic
Treaty Organization and European Regional Organiza-
tions, Paris

Joseph B. Phillips, Public Affairs Officer, American Em-
bassy, Bonn

Deparfment of State Bvlletin

Jac(iues J. Reinsteln, Director, OflBce of German Affairs,
1 )epartment of State

B. i:. L. Timuions, Director, Office of European Regional
Affairs, Department of State

Fraser Wilkins, Director, Office of Near Eastern Affairs,
Department of State

Josepli J. Wolf, NATO Adviser, Office of European Re-
gional Affairs, Department of State

Assistant to the Coordinator

Joseph N. Greene, Executive Secretariat, Department
of State

Secretary of Delegation

William II. Bruns, Office of International Conferences,
Department of State

The Public Relations of Dynamic Peace

hy Andrew H. Berding

Assistant Secretary for FuMic Affairs ^

I feel that I am speaking tonight to an audience
that talks the same language I do. We are work-
ing in the same field, with the same tools, with
the same general objectives. If you in private
industry and we in government think of our re-
spective operations more and more in terms of
similarity rather than dissimilarity, we will un-
derstand one another even better than we do.

Your public relations work involves mass-
media relations, community relations, stockholder
relations, and employee relations. Our govern-
ment public relations work involves the same
relationships.

You have your contacts with the mass media —
press, radio, TV, magazines, motion pictures.
We have our contacts with the same media. If
there is any difference, it consists in the fact that
we have to give answers to questions involving
more issues and more countries — and perhaps in
the fact that we get more calls at lught. How a
government spokesman avoids divorce is a mys-
tery to me. His only safe setup is for husband
and wife to sleep at opposite ends of the home.

You have your community relations, and so
do we. The whole American people are the com-
munity we serve. The American public is

^ Address made before the American Public Relations
Association at Philadelphia, Pa., on Apr. 25 (press release
246).

gi'ouped into organizations as are few other peo-
ples in the world. These gi'oups play increas-
ingly important roles in our national life. We
maintain close cooperation with them.

You have your stockholder relations, and so do
we. Our stockholders are the American people.
They have a right to know what the chairman
and the board of directors of their company are
plamiing, doing, and saying. They furnish the
money, and they need to know where the money
goes.

If there is any difference here, it lies in the fact
that, in essence, we hold a stockholders meeting
every day. To many of you that must be an ap-
palling thought. In any event, we are reporting
to our stockholders every day, and we hear from
our stockliolders, believe me, every day.

Into my office in the Department of State pour
150,000 letters a year from these stockholders.
All these deal with some aspect of foreign policy.
And you know full well that in the majority of
cases, when a stockholder takes a jjen in hand, he
uses it to prick what he thinks is a bad idea. He
wants an answer. And he gets it.

Then you have your employee relations. We
do, too. The United States Government has more
than 2 million civilian employees, most of whom
have gone into government as their career with
the same devotion and ambition that make a man
go into law or medicine or business. Their

May 20, 7957

805

knowledge, capability, and industry result in the
efficiency of the Government. Their morale must
be sustained, and they should both merit and re-
ceive the respect of the public they serve.

Getting Information to American People

For us, all this adds up to the need for public
knowledge of, public understanding of, and public
support of our national and foreign policies. We
in the Department of State are incessantly en-
gaged in trying to get a maximum of information
on foreign policy developments out to the Ameri-
can public.

That's a cliche, and I don't want it to hang in the
air without backing it up. Simply wanting to get
out the maximum amount of information means
very little. This is something that calls for con-
stant work. It means knowing what is going on.
It means convmcing other officials that there are
advantages, as well as disadvantages, in making
something public. It means presenting the facts
in a straightforward, simple fashion that will be
understood and not lead to misinterpretation. It
means giving the background to the facts so that
they may be better grasped. It means getting
hold of interesting details as well as the bare facts.
It means acting with dispatch so that information
is given out before it is leaked out, willingly or
unwillingly, fairly or distortedly. It means keep-
ing the door wide open to news gatherers. It
means giving them service.

This is not easy. Our foreign relations are
worldwide and complicated. This evening I took
occasion, in driving from the airport to the hotel,
to go past 13 South Sixth Street, Philadelphia.
There the Department of Foreign Affairs, as it
was known then, had its first home, in 1781 — an
old row house. At that time the Secretary was
Robert Livingston and the Department had 5 em-
ployees. Today it has over 12,000 American em-
ployees, and we have diplomatic relations with 80
nations and many international and regional or-
ganizations.

I place first reliance for getting across our story
on the established media of public information —
the newspapers, radio, TV, news magazines, and
magazines. No government-contrived and -fin-
anced system for distribution of information can
be more than a shadow compared to the solid mov-
ing mass of these established media. I believe
that the representatives of these American media

806

are among the most intelligent, objective, and
hard working in the world.

The public affairs officer in the Department of
State must, of course, look two ways at the same
time. He must have in mind American public
opinion, and he must have in mind foreign public
opinion. Wliat might be received with acclaim on
this side might fall on the other with the thud that
sickens — and vice versa. This two-brained Janus
must therefore have a knowledge of and apprecia-
tion of both American and foreign opinion.

Increasing Knowledge of Foreign Policy

As for the American public, I am ever more en-
couraged by the constantly increasing knowledge
Americans have of the world and of our foreign
policy. Two world wars, the Korean war, the
presence of the United Nations on our soil, the
role of leadership the United States has had to
assume in the free world, the constant flow of hun-
dreds of thousands of American tourists overseas
annually, the heightened efficiency of communica-
tions and transportation since the last war — all
these and other factors too have combined to ac-
quaint Americans with the rest of the world. Place
names that were once unknown now appear in
headlines and news stories without the need for
explanation. Just a sliort time ago, to most Amer-
icans, at a guess, the Gulf of Aqaba could have
been a Texas inlet; Cyprus a kind of tree; and the
Gaza Strip an act by Gypsy Rose Lee. Fifteen
years ago no quiz program contestant could have
walked off with $190,000 if the question was
""V^Tiat is Okinawa?" — even if the contestant had
the intelligence of a 10-year-old boy.

Another item of encouragement is this : Ameri-
cans, I believe, are becoming more aware of the
fact that the foreign policy of their Government
is solidly based on principle. This principle was
not formulated today or yesterday but goes right
back to the fundamentals set forth by the Found-
ing Fathers of the Republic.

Our people had a dramatic assertion of this fact
in the Middle East crisis last autumn. As Secre-
tary Dulles said in New York 3 days ago, "His-
toric ties would have led us to acquiesce in the
forcible action that was begun. But this would
have involved disloyalty to the United Nations un- j
dertaking that all members renounce the use of
force except in defense against armed attack." ^

' Bulletin of May C, 1957, p. 715.

Department of Slate Bulletin

As lie further said, this was a hard decision and,
he supposed, was not a popular decision. "Yet,"
and I quote him again, "it was imperative if the
world was not to go as it went when the League
Covenant was disregarded."

Some people overseas and some people here still
blame us for that decision. But those in great ma-
jority who admire adherence to principle can now
see clearly that it was as wise as it was noble. All
one needs to do is reflect on all the implications in
Secretary Dulles' phrase — "if the world was not
to go as it went when the League Covenant was
disregarded" — and to cast the mind back to the
chain of misery that did wrap itself around all
people when the Covenant of the League of Na-
tions was disregarded.

Communist Propaganda Offensive

In making clear the foreign policy of the United
States, we face one very important difficulty which
I do not think is shared by public-relations counse-
lors in private endeavor. That is the ever-present
opposition of a ruthless, cutthroat competitor,
with no respect for human life or rights. In this
case the competitor is international communism,
with its total grasp of a vast apparatus of propa-
ganda and its total absence of conscience.

I know that you have your competitors. I am
sure your competition generally is keen, as it
should be. But I doubt that your competitor dis-
seminates falsehoods about your every product,
your every plan, your every statement. I doubt
that he tries to sow dissension between you and
another company. I doubt that he imputes to you
the basest of motives. We, however, face this type
of action all the time.

Worldwide Communist propaganda is one of
the most significant facts of this year. Never be-
fore in all our history have we had to confront
such a phenomenon in peacetime. We had to fight
against German propaganda in the First World
War. We had to fight against Nazi propaganda in
the Second World War. We had to fight against
Soviet and Chinese Communist propaganda in
the Korean war. But never before in peacetime
have we been up against a propaganda offensive
such as that conducted by international
communism.

Just let President Eisenhower or Secretary
Dulles state a policy, new or old, and watch inter-
national Communist propaganda set out to under-

mine it. You ought to watch it — it's a highly
interesting performance, almost as good as some
of the TV shows your companies sponsor, includ-
ing commercials. The President states the Middle
East policy, designed to bring peace and stability
to the Middle East. Overnight, Communist prop-
aganda begins firing all its guns. The United
States is carrying war to the Middle East. The
warmongers of Wall Street are once more in com-
mand. The United States wants to enslave the
peoples of the Middle East. The United States
is the new colonial power. It wants to drive the
British and French out of the Middle East. It
wants for itself all the oil of the area. Its reac-
tionary leaders desire the impoverishment of the
Arabs. It wants to encircle the Soviet Union with
hostile forces. The United States conspired with
the British, French, and Israeli to bring about the
invasion of Egypt.

On Monday of this week I had the pleasure of
being jjresent in New York when Secretary Dulles
addressed the annual luncheon of the Associated
Press. Immediately after the Imicheon we drove
to the airport and flew back to Washingtoii. Lo
and behold, one of the first press dispatches handed
me after I returned to my office was from Moscow.
It dealt with a commentai-y on Radio Moscow dis-
torting the Secretary's speech and, of course, at-
tacking the distortions.

But please note that, bad as all this is, it does
not emanate solely fi"om Moscow. Its diffusion
is far more widespread. The Kaiser's propa-
ganda and the Nazi propaganda came from Berlin,
but the international Communist propaganda
comes from many places simultaneously. It
comes from Soviet-subsidized newspapers and
writers in the Near East. It comes from Com-
mimist newspapers in France and Italy and the
China mainland. It comes from Communist
speakers, from leaflets, in many scores of cities
from Liverpool to Lima. The bandleader in Mos-
cow raises his baton and the musicians all over
the world, including the United States, play in
the same key, however off-key it may be.

Action for Propaganda Effect

Now please note another point. We in our pro-
fessions, yours and mine, generally think of propa-
ganda as consisting of words and ideas put out
over the radio, in the press, in pamphlets, in mo-
tion pictures, and the like. But not so the inter-

May 20, 7957

807

national Commiuiists. They tliink of propaganda
in two terms. One is as I just described it. The
other is action. And very often action is the
most potent propaganda of all.

We in the United States Government are not
accustomed to taking action for propaganda pur-
poses. If we take action in foreign policy, for
instance, it is solely for the purpose of promot-
ing our basic purpose, whicli is peace and justice
for all nations, thus promoting the welfare of all
peoples.

The international Commimist rulers, however,
are prepai-ed, and skillfully so, to use action solely
to produce a propaganda effect. Witness the se-
ries of threatening notes addressed by the Krem-
lin in recent weeks to members of the North At-
lantic Treaty alliance. The Kremlin could have
had no hope that these nations would withdraw
from Nato or give up the Nato bases on their
soil. But they did have a hope that the United
States would be branded as a probable aggressor,
using the Nato countries as launching sites for
an attack on the Soviet Union.

Perhaps never before in diplomatic history
have we witnessed such a Niagara of notes,
letters, and statements as have issued from the
Kremlin in the last few months. All the mid-
night oil from Batum and Baku seems to be burn-
ing in the Kremlin. There are, of course, various
explanations for this flood. But one of them is
without a doubt the propaganda effect.

A little more than a year ago Premier Bulganin
addressed a formal note to President Eisenliower,
proposing a 20-year nonaggression pact between
the two countries.^ Mr. Bulganin could not have
hoped that the President would accept the pro-
posal, in view of all the basic unsettled issues be-
tween the two comitries. But he could hope that
the President's rejection would confirm Soviet
propaganda that the Soviet Union was the pro-
tagonist of peace and the United States the pro-
tagonist of war. He could hope that the proposal
would obscure the fact that the Soviet Union for-
bade the unification of Gennany and the freedom
of the satellites, without which true peace is im-
possible. He could hope that tlie mere discus-
sion of the proposal would alienate the United
States from its closest allies, Britain and Fi-ance,

" IhUl., Fel). C, li)5G, p. 193.

808

with whom the Soviet Union had recently abro-
gated its treaties of nonaggression.

I think we need to learn a lesson — in fact, I
think we have learned a lesson — from the Soviet
practice of action plus propaganda. You remem-
ber, I'm sure, the Soviet and Chinese Communist
campaign on our alleged use of germ warfare in
Korea. They cleverly combined action with prop-
aganda. On the action side they forced American
fliers to make confessions. They ferried to Korea
scientists and pseudoscientists from various coun-
tries so as to produce resolutions and statements.
And no doubt they convinced millions of people I
that Americans were barbarians. I

The lesson is that we too can put across our
ideas to other peoples and even to the Soviet rulers
by action and information — not the spurious ac- J
tion and false information of Communist propa-
ganda, but honest action and true information.

Atoms-for-Peace Program

In December 1953, President Eisenhower ap-
peared before the General Assembly of the United
Nations to appeal to all its members to turn the
dreaded atom into peaceful channels. The first
reaction of the Soviets, conveyed by Eadio Mos-
cow, was one of scorn and suspicion. But our
Government persisted. On the action side it
made bilateral agreements with a number of na-
tions to furnish atomic materials for peaceful use
and research. It trained experts fi'om many
countries in the peacef id use of the atom. It pro-
vided radioactive isotopes to many nations for use
in hospitals. It proposed the creation of an in-
ternational atomic energ}' agency. On the infor-
mation side many statements were made to convey
an idea of the tremendous scope of the atoms-for-
peace. The United States Information Agency
conducted a major campaign througliout the
world, through exhibits, pamiDlilets, radio, press,
and motion pictures, to convey to hundreds of mil-
lions of people the meaning of the President's pro-
posal for the health ajid welfare of men, women,
and children everywhere.

Ultimately the pressure of world public opin-
ion became so overwhelming that the Soviets had
to give in. I was present at the Smnmit Con-
ference at Geneva when Premier Bulganin prom-
ised that the Soviet Union would contribute fis-
sionable materials to an international agency.

Department of State Bulletin

Now that agency has been agreed to, and the So-
viet Union has announocd its ratification.

I was present, too, at the Summit Conference
wlien President Eisenhower made his famous
open-skies proposal for reciprocal aerial inspec-
tion of the Soviet Union and the United States
to prevent surprise attack by one upon the other.
There again the Soviet reaction, then and for
many months to come, was one of opposition, even
derision. To them this was espionage. Mr.
Khrushchev said he did not want American pilots
peering through his bedroom window. I heard
Mr. Molotov argue that American inspection
planes might drop atomic bombs on Russia. But
the United States Government persisted. The
United States Information Agency put on another
global campaign to show what the President's pro-
posal could do and what aerial inspection could
show up in the way of military concentrations and
preparation. And now the Soviets have come to
the point where they are willing to have aerial in-
spection 500 miles on each side of a dividing line
in Eastern Europe. We should like to see a larger
area embraced, of course, but this Soviet counter-
proposal is certainly a concession to the strength
of world public opinion.

Opportunities for Positive Action

With what I have said and with what you al-
ready know of the world situation, you can see the
problems we face in makmg our positions clear.
And you can also see the opportmiities we have for
positive action.

I therefore want to appeal for help to you ex-
perts in this field of public relations. You can do
a valuable work for your Govermnent in many
ways. Too often in the past, I think, government
departments and agencies have appealed for as-
sistance from industry, labor, and national organ-
izations and a patriotic reply comes back, "Of
course. "Wliat do you want us to do?"; and then
virtual silence or vague responses from the Gov-
ernment.

Consequently I want to make a few suggestions.

One vital area where your help is needed is in
spreading understanding of the mutual security
progi-am, now very much in the searcldight glare
of reexamination. As in many a major program,
a certain amount of folklore and a certain amount
of misunderstanding does exist. "Foreign aid"
is a more familiar term to describe it, but it is a

Alay 20, 1957

425655—57 3

misnomer in that the benefits deriving from it are
for us as much as for our friends of the free world.

In the 9 years of its life it has scored notable
successes. The return to economic health of West-
ern Europe under the Marshall plan, which was
the first phase of the progi-am, is one good ex-
ample— a recovery so complete that no new eco-
nomic aid has been undertaken for the Marshall
plan countries of Western Europe in the last 3
years and no foot of soil has been lost to the
Soviets since its inception.

This aid has resulted in far greater security for
the nations of the free world.

The current 1958 mutual security program, as
presented by President Eisenhower and Secretary
of State Dulles, has a fresh approach which has
already enjoyed a good public response. Basi-
cally the program breaks down as follows:

— 75 percent is for military aid and as such will
be added to the Department of Defense budget.

■ — The remaining 25 percent is for economic de-
velopment funds, emergency gi-ant aid, and tech-
nical assistance — each to be clearly identified and
each to be made available as largely as possible
on a loan basis.

These, with the added principle that develop-
mental loans will be on a 3- to 5-year basis for bet-
ter continuity, are the fundamentals of the new
approach. They represent in essence a sharp di-
vision between the military and economic purposes
of the program.

A second area of cooperation relates to the
statute of the International Atomic Energy
Agency, which the United States has done so much
to create. This comes up for ratification shortly.
The proposed agency results from President
Eisenhower's address to the United Nations Gen-
eral Assembly in December 1953, but its purposes
are, I think, insuificiently known to the American
public. Onoe these are imderstood, including the
creation of a pool of basic nuclear fuels for peace-
ful uses, the training of scientists, research and
exchange of information on peaceful uses, I be-
lieve the public response will, be strongly behind
this forward step. The need for reassurance that
the power of the atom will be more and more di-
rected toward the ends of peace is an elemental
need in these anxious times — akin to hunger and
thirst, if you will. Here is food and drink. Here
is forward motion of a positive and tangible kind
toward assuring, in President Eisenhower's noble

809

words, that "the miraculous inventiveness of man
shall not be dedicated to his death, but consecrated
to his life."

A third area of effective help is the people-to-
people program. I was delighted to note that
your speaker last night, Mr. Bolton, made the
people-to-people program the subject of his talk.
I had the privilege of being present in Washing-
ton last September when President Eisenhower
personally launched this movement. I can testify
that the President is keenly interested in the pro-
gram and is confident it can produce an extremely
valuable effect overseas. The scope of the people-
to-peojile program is vast, and witliin its range
of activities any one of you will find at least one
facet that merits a contribution of effort.

All the help you can give in creating overseas
a climate of good will toward the United States
is of value to your Government. The application
of our foreign policy in a given country will al-
ways be more fruitful if it falls on a soil enriched
by understanding of the ideals upon which our
country stands.

Tliose of you who have overseas operations
might well give particular attention to the numer-
ous new nations that have come into being since
the last war. There are 19 of them, and they
embrace a population of 700 million people, nearly
one third the people of this earth. It is impor-
tant that these peoples be friendly to us and under-
stand our policies.

On this side of the waters you can be helpful
simply by making yourselves and your firms and
associations more aware of what our foreign pol-
icy is. There are numerous ways of doing so, and
there is no need for me to list them. I do, how-
ever, commend to your reading the full text of the
address Secretary Dulles delivered in New York
on Monday [April 22], entitled "Dynamic Peace."
It cogently states the basic principles underlying
our policy of waging peace.

In dealing with various segments of the Ameri-
can public, don't be afraid to offer an opinion once
you have formed it. If you are in position to help
mature the opinion of a group, get them to under-
stand their stake in the conduct of our foreign
policy.

Secretary Dulles has said : "The bedrock foun-
dation of U.S. foreign policy must come from the
American people. Your awareness of the prob-
lems we face and your interest in helping us to

find just and workable solutions to them are essen-
tial to a successful foreign policy."

Finally, if there is any aspect of foreign policy
you do not understand, please don't hesitate to
write to my office. With the influx of the 150,000
letters per year I mentioned earlier, we can always
handle a few more. I promise you an answer.

U.S. Rejects Hungarian Charges
Against Captain Gleason

Press release 248 dated April 25

In a note received at the American Legation at
Budapest on April 9 ' the Hungarian Ministry for
Foreign Affairs alleged that Capt. Thomas R.
Gleason, Assistant Military Attache at the Lega-
tion, has engaged in "open espionage" and de-
manded that he leave Hungary within 48 hours.
Six days earlier, on April 3, Captain Gleason and
Col. J. C. Todd, the American Military Attache,
had been halted on a public road near a Soviet-
occupied barracks in Hungary and detained for
nearly 6 hours by Soviet and Hungarian military
personnel under the apparent direction of a Soviet
officer. The American Legation protested this
incident in a note to the Foreign Ministry dated
April 5.^

In a reply to the Hungarian note of April 9,
which was presented to the Hungarian Ministry
for Foreign Affairs by the American Charge
d'Affaires, N. Spencer Barnes, at Budapest on
April 25, the U.S. Government has rejected the
Ministry's charges of espionage, renewed the Le-
gation's protest concerning the incident of April
3, and requested that the Ministry bring this pro-
test to the immediate attention of the responsible
Hungarian authorities.

Text of U.S. Note of April 25

The Legation of the United States of America
presents its compliments to the Hungarian Min-
istry of Foreign Affairs and has the honor to refer
to the Ministry's note of April 9, 1957 alleging
certain improper activities on the part of Captain
Thomas R. Gleason, Assistant Military Attache
of the Legation.

It is clear from the record of Captain Gleason's
actions that he neither engaged in improper ac-
tivities nor violated any known Hungarian law

' Not printed.

810

Department of State Bulletin

or regulation affecting foreign diplomatic person-
nel in Hungary. He traveled openly, on the un-
derstanding that diplomatic personnel may move
about freely within the territory of Hungary. He
identified himself fully in his occasional meetings
with Hungarian citizens. On no occasion did he
depart from accepted norms of conduct for diplo-
matic personnel.

With reference to the incident of April 3, 1957,
the United States Government considers it inex-
cusable that Captain Gleason and Colonel Todd
should be halted at gun point, questioned at length,
and detained for nearly six hours on a public road
by Soviet and Hungarian military personnel.
This treatment of Captain Gleason and Colonel
Todd can only be regarded as a flagrant breach of
diplomatic courtesy. The fact that these Ameri-
can officers were detained by personnel under the
apparent direction of a Soviet officer is particu-
larly noteworthy, for it reflects the conditions
which characterize an occupied country.

The Legation is instructed by the United States
Government to reject categorically the charges
made against Captain Gleason, and to renew its
emphatic protest concerning the incident of April
3. The Legation requests that this protest be
brought to the immediate attention of the respon-
sible Hungarian authorities.

United States Position

on Nicaraguan-Honduran Conflict

DEPARTMENT ANNOUNCEMENT

Press release 260 dated May 2

The U.S. Government is gravely concerned over
reports of an armed clash involving troops of
Honduras and Nicaragua. The Council of the
Organization of American States met on May 1
in special session to deal with a Honduran allega-
tion of an aggression by Nicaraguan troops. It
met again on May 2 to consider Nicaraguan ac-
cusations that Honduran troops had fired on and
killed Nicaraguan soldiers.

In addressing the Council of the Organization
of American States on May 1, the U.S. Repre-
sentative, Ambassador John C. Dreier, stated, in
part:

It Is . . . the responsibility of all member states, in-
cluding especially tho.se which may be involved In a dis-
pute, to take every reasonable measure to prevent the
aggravation of a situation or controversy which they
bring to the attention of the Council. I am sure that
every member of this Council shares the view that it is
incumbent upon all states to avoid any acts which might
make a just and honorable resolution of this controversy
more difficult.

As a member of the Oas, this Government
stands ready to participate fully in such actions
as may be agreed upon to resolve the controversy
between these two member states and, meanwhile,
expresses in the most friendly terms its urgent
hope that they will avoid further acts which might
prejudice a prompt and peaceful solution of the
problem.

STATEMENT BY AMBASSADOR JOHN C. DREIER '

I should like to say that I have listened with
greatest care to the statements made by the Rep-
resentatives of Honduras and Nicaragua and have
studied the note from the Foreign Minister of
Honduras which was delivered to the chairman
yesterday.

On various occasions, I have expressed the
opinion that as a result of the effective function-
ing of the Organization of American States it is
inconceivable that any of the sister republics of
this hemisphere would resort to armed conflict to
settle a dispute. This remains my firm belief, and
I am sure that the tradition and spirit of peace-
ful settlement of international disputes that moti-
vate the American nations will certainly prevail in
the controversy that has been brought to the at-
tention of this Council today. The statements by
the Representatives of both Honduras and Nic-
aragua fortunately fully support that view.

The record of the Organization of American
States in the maintenance of peace and security
is based upon a number of different legal, political,
cultural, and moral factors. Certainly one of the
most important is the sense of responsibility which
all the American nations increasingly share for
the maintenance of the principles of peaceful solu-
tion of international disputes and the banning of
aggression.

' Made before the Council of the Organization of
American States at Washington, D. C, on May 1. Am-
bassador Dreier is U.S. Representative on the CounciL

May 20, 1957

811

Whenever any member state brings to the Coun-
cil a charge that its political independence and
territorial integi"ity is being affected by threats or
acts of aggression, it is the immediate responsi-
bility of this Council to give prompt and serious
consideration to that request. It is also the im-
mediate responsibility of this Council to give a
full and fair hearing to the party against which
charges are lodged. This the Council is doing.

It is also, Mr. Chairman, the responsibility of
all member states, including especially those
which may be involved in a dispute, to take every
reasonable measure to prevent the aggravation of
a situation or controversy which they bring to the
attention of the Council. I am sure that every
member of this Council shares the view that it is
incumbent upon all states to avoid any acts which
might make a just and honorable resolution of this
controversy more difficult.

In determining whether to accede to the request
of a member state to convoke a meeting of foreign
ministers under the Inter-American Treaty of
Reciprocal Assistance, the Council must, of course,
weigh carefully the question of whether the im-
mediate situation fulfills the requirements set
forth in that treaty. In order to make such a
determination, it is quite possible that further
clarification of the factual situation should be
sought.

Members of the Council will also welcome any
indication from the representatives of the parties
to the controversy as to what means other than the
convocation of a meeting of foreign ministers
might be adequate to lead to a solution of the basic
difficulty. In the present instance, the incidents
which have been alleged to have taken place in the
border territory are related to a longstanding
legal dispute. "We may hope that the parties will
work out some method of resolving the basic cause
of this conflict. They can readily find assistance

toward this end from the peaceful procedures in
effect in the inter- American system, including the
services of the Inter- American Peace Committee,
should they so desire.

In conclusion, I\Ir. Chairman, I wish to stress
the importance which my delegation attaches to
the avoidance of any acts which would make a
solution of the present controversy more difficult,
to the further clarification of facts bearing upon
the desirability of convoking a meeting of foreign
ministers to consider the matter, and to the con-
sideration by the parties themselves of all possible
methods of resolving this controversy in the spirit
and tradition of the Organization of American
States.

Under the circumstances I agree it would be
premature for the Council to take any decision on
the request today. I support the motion of the
Representative of Mexico that the Council adjourn
for 48 hours to provide an opportunity for con-
sideration of the matter, with the understanding
that, should changed circumstances so require,
the chairman may call the Council into session at
any time. I also support the suggestion that the
Council express m the most friendly terms to the
two sister Governments its confidence that they
will avoid acts which might make the solution
of the problem more difficult.-

" On May 2 the Council adopted unanimously a resolution
in whicli it took cognizance of the charges of Honduras
and Nicaragua. The resolution called for a meeting of the
Organ of Consultation under the Rio Treaty (the Organ
of Consultation is a meeting of the Ministers of Foreign
Affairs), and the Council constituted itself as the Pro-
visional Organ of Consultation pending the meeting of
foreign ministers. The chairman appointed a committee
of five (Argentina, Bolivia, Mexico, Panama, U.S.) to
investigate the dispute on the spot and report back to
the Council. The committee then elected Ricardo Arias
of Panama as its chairman. The committee left \Vash-
iugton on May 3 for Tegucigalpa and Managua.

812

Department of State Bulletin

The Road Ahead for Foreign Trade Policy

hy Thorsten V. Kalijarvi

Assistant Secretary for Economic Affairs ^

It is a pleasure to meet with j'ou gentlemen who
are activelj' engaged in the business of importing
and exporting. As foreign traders you are among
the adventurous businessmen of our country.
You help extend our horizons and contribute to
making our high living standards constantly
higher.

"While I have chosen as the theme of my talk
"The Road Ahead for Foreign Trade Policy," I
wish to address myself principally to the forth-
coming European common market and free trade
area and to the improvement of the international
organizational machinery for foreign trade.
There, we believe, lies one of the keys to the maxi-
mum expansion of our foreign trade. There, we
believe, lies the promise for increasing the eco-
nomic and political strength of an important part
of the free world. There too, we believe, lie many
opportunities for our future trade.

Importance of Foreign Trade

All of us know the importance of foreign trade.
It consists of the movement of goods and services,
and it is a producer of vitality, well-being, and
security for the Nation as well.

It is an essential part of that solid economic
foimdation without which the mutual defense of
the free world would be built on quicksand. In-
deed, it does not take much reflection to make clear
that it is unpossible for vis to live in economic
isolation and at the same time to convince others
to join us in international political cooperation.

' As-delivered text of address made before the National
CJouncil of American Importers, Inc., at New York, N. Y.,
on Apr. 25 (advance test issued as press release 240 dated
Apr. 24).

May 20, J957

If we were miwise enough to keep others from
selling in the American market, foreigners would
be unable to buy our products. This is a fact
wliich our disposal program for surplus agricul-
tural commodities has highlighted. That pro-
gram has emphasized our dependence on export
markets for many commodities. It is axiomatic
that exports and imports have a direct relation-
ship to each other. Of course, the import of com-
modities does not have as its sole purpose the facil-
itating of exports. Nevertheless, our basic con-
cept is that as a country we profit by importing
as well as by exporting. This exchange benefits
all of our 170 million people, not just those en-
gaged in specific transactions.

"What is more, foreign trade has proven not only
a significant contribution to the economy but a
dependable one. It holds great promise for tlie
future. You may recall that immediately follow-
ing World War II many argued that our profits
from foreign trade were only temporary. Were
it not for our vast outpouring of aid under the
]\Iarshall plan and the devastated world produc-
tive facilities, they said. United States expoi-ts
would soon drop sharply, and imports from low-
wage countries would flood the country, compet-
ing with domestic products and displacing domes-
tic employment.

Now we know that reasoning to have been false.
The actual facts are vastly different. Our non-
military aid expenditures have been reduced, and
competition in world markets has returned to what
may be called a normal level. Yet in 1956 we re-
corded the highest level of commercial exports
in our history, surpassing even the level of exports
in 1947, the previous peak year. Imports in-

813

creased, and at the same time the excess of our
exports over our imports in 1956 expanded.

Problems

Now for the problems in the road ahead. Some
of the foreseeable major problems — as well as new
opportunities — facing us in the future are cen-
tered around the European common market and
free trade area.^ Wliile this integi-ation has not
yet taken place, its shape is constantly growing
clearer. Its full meaning for United States for-
eign trade policy is not apparent in all respects.
In general, however, we are convinced that it will
have great significance for us.

The post-World War II era in foreign trade
is drawing to a close. It was characterized by the
creation of certain institutions to facilitate in-
ternational economic cooperation, notably the In-
ternational Monetary Fund, the International
Bank for Reconstruction and Development, and
the General Agreement on Tariffs and Trade.

The International Monetary Fund was set up
to operate in the field of finance and exchange-
rate policies. It was designed to provide liquidity
and a margin of credit so as to tide countries over
short-term difficulties in their balance of pay-
ments and thus to avoid the resort to restrictive
measures that would depress world trade.

The International Bank for Reconstruction and
Development was established to provide capital
loans to fijiance the importation of equipment and
machinery to restore ravaged countries and to ex-
pand production in economically underdeveloped
countries.

The General Agreement on Tariffs and Trade,
signed in 1947, to which 35 nations now adliere,
converted a large part of the world's tariff nego-
tiations from a bilateral basis to a multilateral
basis. That agreement established a code of fair
conduct for international trade and provided ma-
chinery for consultation and review of trade and
tariff disputes. The Gatt made amicable adjudi-
cation of such disputes possible and thus avoided
trade warfare, with which the world had been
beset in earlier days.

These institutions and arrangements were dedi-

•For an announcement of U.S. views on the European
common market and free trade area, see Bitli-ctin of
Feb. 4, 1957, p. 182.

cated to the expansion of business freedom and
responsibility in international economic relations.
Tliey grew out of and reflected the experience of
the twenties and early thirties, when countries act-
ing by themselves tried to insulate themselves
against the world depression by restricting trade,
by cutting down imports, and by trying to expand
exports. This movement toward autarchic sys-
tems, with highly regulated, centrally controlled
trade, finance, and exchange, had its extreme mani-
festation in the Communist and Fascist states.
The net result was a distorted pattern of world
trade, the loss of liberties usually associated with
private enterprise, and a series of competitive ex-
change depreciations. Retaliatory protection be-
came the rule.

The international economic institutions just de-
scribed were efforts of the victorious powers to
correct this undesirable situation and to prevent |
its return in the postwar period. The benefits
accruing from these organizations in the last 10
years have been manifold. Of course they have
not solved all the foreign trade problems, nor will
they provide solutions for all those that lie ahead.
Nevertheless, the objectives of expanding trade,
broadening tariff negotiations, and the adoption of
common trading rules are more valid now than
ever. If those objectives are pursued with de-
termination, the institutions created after the
war can promote even more effectively an ever-
growing world trade.

Against this background, let us examine the
European common market and its challenge.

Challenge of the Common Market

The proposed European common market and
free trade area constitute a major new factor in the
economic world of today.

As you know, the proposed European common
market will be composed of Belgium, France, the
German Federal Republic, Italy, Luxembourg,
and the Netherlands. These six countries, in an
unprecedented step, plan to eliminate substantially
all trade barriers among themselves. The bar-
riers slated to go include tariffs and quota restric-
tions, covering both the public and private sectors
of trade. German Volkswagen, for example, will
enter the five non-German countries without re-
striction or tariff payments. So will French per-
fumes, Belgian machinery, Italian leather, Dutch
bulbs, and a multitude of other products.

814

Department of Sfofe Bulletin

Not only does the common market involve the
elimination of substantially all barriers among the
six countries; it also involves the establishment of
a common unified external tariff toward outside
countries. In other words, United States auto-
mobiles, leather, and other export products will be
subject to the same tariff in each of the six coim-
tries.

It is anticipated that the move toward economic
integration may go beyond the six countries. The
United Kingdom and 10 other Western European
countries have indicated an interest in associating
themselves with "the six" in a broader free trade
area. Under such an arrangement, barriers to
trade between the additional 11 countries and "the
six" would be eliminated on a wide range of prod-
ucts. However, the 11 countries would continue
to maintain their own tariffs against countries out-
side the free trade area. The six countries of the
conunon market would do the same with their
unified tariff.

To give you a concrete idea of the magnitude
and importance of the market thus to be created,
the six countries in 1955 possessed over 162 mil-
lion people, a combined gross national product of
$126 billion, and 22 percent of world trade. More-
over, there were in 1955 in the 17 prospective com-
mon-market and fi'ee-trade-area countries about
285 million people. This area is one of the most
highly industrialized in the world.

United States trade figures may give you an
appreciation of the significance of this area to us.
The United States exported worldwide over $15
billion in goods and services in 1955. Of this
total, almost $4.5 billion or about 29 percent went
to the 17 ; and of that $4.5 billion, over $2 billion
of United States exports went to "the six."

Obviously, a common market area as large as
the six countries without internal trade barriers
promises a tremendous stimulus to efficient pro-
duction and improved livdng standards in Europe.

The United States has welcomed this develop-
ment. We believe the free world will gain if the
principal nations of Western Europe can achieve
strength through economic integration. Politi-
cally, such a imit could become a powerful element
in world affaii-s. Economically, it could lead to
an unpai'alleled expansion in world trade. As the
barriers are reduced and increased competition
within the connnunity spurs increased efficiency
and productivity, standards of living will rise.

From this should result greater demands for
American and other foreign goods.

Therein lies the promise of the conunon market
and free trade area. The fulfillment of that
promise in part or in whole, however, depends on
the associations being used to attain the six coun-
tries' stated objective of expanding trade not only
with each other but also with other countries.
It is the expansion of trade with the rest of the
world that is a major concern with us. Nor are
we alone in our concern. Our neighbor Canada
has taken a position similar to ours. Indeed, so
have the United Kingdom and others.

The common-market concept is already far ad-
vanced. "The six" have signed a treaty for the
establishment of a common market. Tlie ratifica-
tion process is beginning in the six national par-
liaments, although many problems must be solved.
There will be real difficulties, for example, in
bringing the comparatively stable industries of
some member coimtries into the same market ar-
rangement with the expanding industries of
others, and in associating overseas territories of
"the six" with the common market. The greater
the difficulties in winning approval at home for
the elimination of trade restrictions within the
common market, the greater the temptation will
be to raise the common barriers against goods com-
ing from outside the area. Certainly, from our
standpoint, the promise of the common market
consists in a large measure in resisting that
temptation.

United States Policy

We assume that it is the firm intention of the
member countries of both the common market and
the free trade area to press for the expansion of
trade with the outside world. On that assump-
tion we know that they will need encouragement
in order to achieve their goals. On that assump-
tion, too, the course of United States trade policy
may well prove decisive over the next few years.
If this country continues its liberal trade policy,
the members of the Western European community
will be given a powerful incentive to continue for-
ward and to bring their plans to fruition. The
transitional period will be difficult for them in any
case. It is most important from our viewpoint,
as we have already said, to have "the six" continue
tlirough this period to look outward toward world
markets and global trading arrangements. If

May 20, 1957

815

"the six" find themselves confronted with in-
creased restrictions elsewhere, they will tend to
look inward toward their own large miified
market and to raise barriers against outsiders to
the detrunent of United States trade.

The implications for United States foreign
trade of the new developments must not be glossed
over. Competition both in world markets and
in the United States market may grow sharper.
But this is not new to us. Competition is basic
to our domestic economy. We advocate it inter-
nationally as well. Competition is, of course, the
I^rimary reason for the success of the free enter-
prise system. Competition, both foreign and do-
mestic, in general improves the overall efficiency
of tlie economies of the free world.

We have no doubt that American trade will be
competitive. We see in these new developments
new profitable export opportunities for our
traders — opportunities that have always been
earnestly sought and assiduously exploited.

Another encouraging development is that, as
the balance-of-payments position of various coun-
tries continues to improve, there will be less justi-
fication for import quotas and other trade restric-
tions. We shall press for their entire elimination.
Later this year in Geneva the United States will
consult with 20 countries still maintaining quanti-
tative restrictions for balance-of-payments rea-
sons. These consultations will provide the oc-
casion for discussing the current level of trade re-
strictions and for examining the prospects for
further relaxation and eventual elimination of
the restrictions.

Improving the GATT

There is another important aspect to this new
common-market development that requires our at-
tention, namely its relationship to the Gatt. The
newly integrated unit will make necessary some
effective measures by ourselves and others to keep
abreast of developments.

The six countries intend to set up new machinery
for the determination and administration of their
policies. That machinery includes a Comicil, a
Commission, a Court of Justice, and an Assembly
to provide a "forum of opinion." It is to be ex-
pected that the 11 associated countries in the free
triide area would have a large community of in-
terest in and would work along with such organi-
zations.

In view of these continuing developments, the
"outside" countries, especially those associated in
the Gatt, including the United States, must have
an eifective administrative organization to follow
the policies, plans, and actions of the 17 countries
prospectively coming together in the new trading
arrangements. The organization must have facil-
ities to report developments to all the countries
of the Gatt and to provide a forum for the dis-
cussions of such developments speedily. It is now
apparent that it is in the interest of United States
business — both export and import — that such an
organization be created.

If the Organization for Trade Cooperation had
not previously been proposed, we should now have
to propose it. The President has seen this clearly.
He has emphasized to the Congress the need to
press for its approval so that it can be made active
and efficient at the earliest possible moment.^

The Oi'ganization for Trade Cooperation among
other functions will furnish a continuous forum
for the constant watch and consideration of the
plans and actions of the 17 members of the com-
mon market and free trade area. It will provide
an institution for the achievement of harmony be-
tween the provisions and general objectives of the
general agreement and those of the common mar-
ket and free trade area. We must make every
effort to harmonize the common market and free
trade area with the Gatt. Otherwise there is a
real danger that the associated nations will be
tempted to break away as an independent regional
group, going their own way with their own tariffs,
their own quotas, with no obligation to the other
countries of the world.

Two Major Points

In conclusion permit me to summarize the two
major points we have made.

First, the emerging European common market
and free trade area are major new factors in the
economic world. The future course of United J
States foreign economic policy is directed toward '
encouraging "the six" and others to reduce trade
barriers and to work toward a nondiscriminatory
multilateral trading world.

Second, the Oto is needed in this new era of the
common market.

We stand on the tlireshold of a new era of ex-

' Ibid., Apr. 22, WVu, p. C)?.

816

DeparlmenI of Stafe Bulletin

panded world trade. Our sliare in that trade will
depend upon the vision which you as private
foreign traders and we as government officials
manifest in meeting our opportunities.

Quota on Imports of Butter Oil
and Butter Substitutes

White House press release dated April 10
WHITE HOUSE ANNOUNCEMENT

The President has issued a proclamation impos-
ing a quota upon imports of butter oil and butter
substitutes containing 45 percent or more of
butterfat. For the year 1957 the quota will be
1,800,000 pounds. For 1958 and subsequent years,
the annual quota will be 1,200,000 pounds.

The President accepted the Tariff Commis-
sion's recommendation that he impose a quota in
this case. The Commission recommended that the
annual quota should be 1,800,000 pounds, which
is equivalent to actual butter oil imports in 1956.
The President imposed a quota in that amount for
the current year. For 1958 and each subsequent
year, however, the proclamation imposes a smaller
quota.

The President's action was based on a report
of the United States Tariff Commission.^ The
Commission's investigation and report were made
under section 22 of the Agricultural Adjustment
Act, as amended, which authorizes limitations on
imports when imports are interfering with or
threaten to interfere with domestic price-support
or marketing programs.

PROCLAMATION 3178 ^

IMPOSING A QUOTA ON BUTTER SUBSTITUTES,
INCLUDING BUTTER OIL

Whereas, pursuant to section 22 of the Agricultural
Adjustment Act, as amended (7 U. S. C. 624), the Secre-
tary of Agriculture advised me that there was reason to
believe that butter substitutes, including butter oil, con-
taining 45 per centum or more of butterfat, which are
dutiable under paragraph 709 of the Tariff Act of 1930,
as amended, are practically certain to be imported into

' Copies of the report roay be obtained from the U.S.
Tariff Commission, Washington 25, D. C.
"22 Fed. Reg. 2701.

the United States under such conditions and in such
quantities as to render or tend to render ineffective, or
materially interfere with, the price-support program un-
dertalvcn by the Department of Agriculture with respect
to milk and butterfat, or to reduce substantially the
amount of products processed in the United States from
domestic milk and butterfat with respect to which such
program of the Department of Agriculture is being
undertaken ; and

Wheueas on November 17, 1956, under the authority of
the said section 22, I caused the United States Tariff Com-
mission to make an investigation with respect to this mat-
ter; and

Whereas, in accordance with the said section 22, as
implemented by Executive Order No. 7233 of November
23, 1935, the said Tariff Commission has made such in-
vestigation and has reported to me its findings and recom-
mendations made in connection therewith ; and

Whereas, on the basis of the said investigation and
rejjort of the Tariff Commission, I find that butter substi-
tutes, including btitter oil, containing 45 per centum or
more of butterfat and classifiable under paragraph 709 of
the Tariff Act of 1930 are practically certain to be imported
into the United States under such conditions and in such
quantities as to materially interfere with the said price-
support program with respect to milk and butterfat, and to
reduce substantially the amount of products processed in
tJie United States from domestic milk and butterfat with
respect to which said price-support program is being un-
dertaken ; and

Whereas I find and declare that the imposition of the
quantitative limitations hereinafter proclaimed is shown
by such investigation of the said Tariff Commission to be
necessary in order that the entry, or withdrawal from
warehouse, for consumption of such butter substitutes,
including butter oil, will not materially interfere with
the said price-support program or reduce substantially the
amount of products processed in the United States from
domestic milk and butterfat with respect to which the
said price-support program is being undertaken :

Now, therefore, I, DwiGHT D. Eisenhower, President
of the United States of America, acting under and by
virtue of the authority vested in me by the said section 22
of the Agricultural Adjustment Act, do hereby proclaim
that the total aggregate quantity of butter substitutes, in-
cluding butter oil, containing 45 per centum or more of
butterfat and classifiable under paragraph 709 of the
Tariff Act of 1930, as amended, which shall be permitted
to be entered, or withdrawn from warehouse, for con-
sumptiiui during calendar year 1957, shall not exceed
1,800,000 pounds, and that the total aggregate quantity
of such articles which shall be permitted to be entered,
or withdrawn from warehouse, for consumption during
the calendar year 195S and each subsequent calendar
year shall not exceed 1,200,000 pounds. The specified
quantities of the named articles which may be entered,
or withdrawn from warehouse, for consumption are not
proportionately less than .50 per centum of the total quanti-
ties of such articles entered, or withdrawn from ware-
house, for consumption during the representative period
from January 1, 1956, to December 31, 1956, inclusive.

May 20, 1957

817

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

Done at the City of Washington this fifteenth day of

April in the year of our Lord nineteen hundred

[seal] and fifty-seven, and of the Independence of the

United States of America the one hundred and

eighty-first.

yO^ C-ts-^ /C-/>0'C-<-<-<— . A*«>/>

By the President :

Christian A. Herteb

Acting Secretary of State

Congressional Documents
Relating to Foreign Policy

85th Congress, 1st Session

An Agreement Between the United States of America and
the United Mexican States Concerning Radio Broad-
casting in the Standard Broadcast Band, Signed Janu-
ary 29, 1957. S. Exec. G, March 12, 1957. 23 pp.

ICEJI and Laud Resettlement. Resettlement of European
Migrants in Latin America. Report of Subcommittee
No. 1 of the House Committee on the Judiciary pursuant
to H. Res. 107, a resolution authorizing the Committee
on the Judiciary to conduct studies and investigations
relating to certain matters within its jurisdiction. H.
Kept. 203, March 18, 1957. 79 pp.

Amendment of Anglo-American Financial Agreement.
Report to accompany S. J. Res. 72. S. Kept. 166, March
18, 1957. 6 pp.

Amendment to the Anglo-American Financial Agreement.
Hearings before the Subcommittee on Foreign Economic
Policy of the House Committee on Foreign Affairs on
H. J. Res. 271 to implement further the act of July 15,
1946, by approving the signature by the Secretary of
the Treasury of an agreement amending the Anglo-
American Financial Agreement of December 6, 1945.
March 18 and 19, 1957. 52 pp.

Expressing the Sense of the Congress That Efforts Should
Be Made To Invite Spain to Membership in the North
Atlantic Treaty Organization. Report to accompany H.
Con. Res. 115. H. Kept. 206, March 19, 1957. 4 pp.

Report of the Special Study Mission to Guatemala of the
House Committee on Foreign Affairs. H. Rept. 207,
March 19, 1957. 19 pp.

Report of the Special Study Mission to the Mediterranean
Area of the House Committee on Foreign Affairs. H.
Rept. 20S, March 19, 1957. 12 pp.

Export-Import Bank Loans. Hearing before the House
Committee on Banking and Currency on H. R. 4136.
March 19, 1957. 40 pp.

The Statute of the International Atomic Energy Agency.
Message from the President transmitting a certified copy
of the Statute of the International Atomic Energy
Agency, which was open for signature at the United
Nations Headquarters in New York for 3 months, from
October 26, 1956, to January 24, 1957, and was signed
in belialf of the United States of America and by 79
other nations. S. Exec. I, March 22, 1957. 42 pp.

Extension of Export-Import Bank Act. Report to ac-
company H. R. 4136. H. Rept. 221, March 25, 1957.
4 pp.

Extension of Public Law 480. Report to accompany S.
1314. S. Rept. 188, March 26, 1957. 14 pp.

Amending the Atomic Energy Act of 1954, As Amended,
and for Other Purposes. Report to accompany H. R.
5860. H. Rept. 228, March 20, 1957. 4 pp.

Amending the Atomic Energy Act of 1954, As Amended,
and for Other Purposes. Report to accompany S. 1549.
S. Rept. 191, March 27, 1957. 4 pp.

Korea, Japan, Taiwan (Formosa), and the Philippines.
Report on United States foreign assistance programs
prepared at the request of the Senate Special Committee
To Study the Foreign Aid Program by Dr. John A,
Hannah, president, Michigan State University (pur-
suant to S. Res. 285, 84th Cong., and S. Res. 35, 85th
Cong.). Survey No. 5, March 1957. 24 pp. [Committee
print.]

Technical Cooperation in the Andes Countries of South
America. Report of Senator Mike Mansfield and Sen-
ator Bourke B. Hickenlooper on the technical coopera-
tion programs in Peru, Bolivia, and Ecuador, pursuant
to S. Res. 162, 84th Cong. March 1957. 14 pp. [Com-
mittee print.]

The Role of Foreign Aid in the Development of Other
Countries. A study prepared at the request of the
Senate Special Committee To Study the Foreign Aid
Program by the Research Center in Economic Develop-
ment and Cultural Change of the University of Chicago
(pursuant to S. Res. 285, 84th Cong., and S. Res. 35, 85th
Cong.). No. 3, March 1957. 87 pp. [Committee
print.]

Agricultural Surplus Disposal and Foreign Aid. A study
prepared at the request of the Senate Special Commit-
tee To Study the Foreign Aid Program by the National
Planning Association (pursuant to S. Res. 285. 84th
Cong., and S. Res. 35, S5th Cong.). No. 5, March 1957.
41 pp. [Committee print.]

Foreign Assistance Activities of the Communist Bloc and
Their Implications for the United States. A study pre-
pared at the request of the Senate Special Committee
To Study the Foreign Aid Program by the Council for
Economic and Industry Research, Inc. (pursuant to
S, Res. 285, 84th Cong., and S. Res. 35, 85th Cong.).
No. 8, March 1957. 134 pp. [Committee print.]

The Foreign Aid Programs and the United States Economy.
A study prepared at the request of the Senate Special
Committee To Study the Foreign Aid Program by the
National Planning Association (pursuant to S. Res. 285,
84th Cong., and S. Res. 35, S5th Cong.). No. 9, March
1957. 105 pp. [Committee print]

Western Europe I (Norway, Denmark, and Western Ger-
many). Report on United States Foreign Assistance
Programs prepared at the request of the Senate Special
Committee To Study the Foreign Aid Program by
William Randolph Hearst, Jr., pursuant to S. Res. 285,
84th Cong., and S. Res. 35, 85th Cong. Survey No. 6.
March 1957. 27 pp. [Committee print.]

Central America and the Caribbean Area (Cuba, Haiti,
Dominican Republic, Panama, Costa Rica, Nicaragua,
Honduras, El Salvador, Guatemala, and Mexico). Re-
port on United States Foreign Assistance Programs
prepared at the request of the Senate Special Committee
To Study the Foreign Aid Program by James Minotto,
former Mutual Security Agency Chief in Portugal, pur-
suant to S. Res. 285, S4th Cong., and S. Res. 35, S5th
Cong. Survey No. 9. March 1957. 29 pp. [Committee
print.]

The Military Assistance Program of the United States.
Two studies and a report prepared at the request of
the Senate Special Committee To Study the Foreign Aid
I'rogram by a Siiecial Civilian-Military Review Panel,
the Institute of War and Peace Studies of Columbia Uni-
versity, and the Systems Analysis Corporation, Wash-
ington, D. C, pursuant to S. Res. 285, S4th Cong., and
S. Res. 35, 85th Cong. No. 10. March 1957. 166 pp.
[Committee print.]

818

Deparfment of Sfate Bulletin

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Trusteeship Council Reviews Progress in Trust Territories

Follotoing are texts of statements made dunng
the 19th session of the Trusteeship Council hy
Mason Sears, the U.S. Representative on the
Trusteeship Council, and Robert G. McGregor,
Deputy Director, Office of Dependent Area Af-
fairs, Department of State, who tvas j)nncipal ad-
viser to the U.S. delegation.

STATEMENT BY MR. McGREGOR ON RUANDA-
URUNDI, MARCH 25

U.S./U.N. press release 2650 dated March 26

As the Council knows, I served as the United
States Eepresentative in the Belgian Congo and
Ruanda-Urimdi for 3 years. In this capacity I
visited the trust territory on tliree different oc-
casions and was able to observe the workings of
the Belgian Authority at first hand. I can there-
fore and I wish to pay just tribute to the spirit
of sincerity and dedication with which the Ad-
ministering Authority discharges its duties in
the Trust Territoiy of Kuanda-Uiiuidi.

It is often stressed in the Council that one of
the basic tasks of the Administering Authority in
this particular territory, insofar as the political
structure is concerned, is the adaptation of a
well-entrenched and liighly developed feudal sys-
tem in two distinct areas to the demands of the
trusteeslup agreement. Tliis means that, while
preserving order and maintaining sound economic
policies, the Administering Authority is obliged
gradually to break down anachronistic and out-
moded authoritarian practices that are centuries
old and implant in their stead the rudiments of
democracy. This involves not only political in-
doctrination at the grassroots but also the substi-
tution of an electoral process for rule by fiat.
It is no wonder then that progress is slow.

My delegation wishes to congratulate the Ad-
ministering Authority on two particular steps that

have been taken in the past year which should
advance the pace of political progress in the ter-
ritory. The first is the projected enlargement and
reorganization of the Council of the Vice-Gover-
nor General, which envisages an increase in Afri-
can representation. The second is the use of the
electoral ballot for the first time by 700,000 adult
male inliabitants of the territory. These actions
are heartening and in our view most timely. Mr.
President, the United States Representative in
posing questions to the Special Representative de-
sired to leave the impression that tlie administra-
tion'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. My
delegation would like to think that the Admin-
istering Authority in the Trust Territory of Ru-
anda-Unmdi is not unaware of this fact and that,
in guiding the political destinies of the inliabitants
of the trust territory in its charge, it will continue
to introduce political reforms and thus permit the
territory to stay ahead of these pressures within
and withstand pressures from without. It ex-
presses the hope that the Administering Authority
will actively encourage and assist more and more
Africans to qualify for high administrative and
consultative posts in the Government. Thus these
Africans may work hand m hand with the Admin-
istering Authority for the political future of this
territory.

A study of the economic situation convinces my
delegation that considerable forward strides have
been made in tlie development of cash crops, in
stimulating exports, and in modernizing the econ-
omy. Having been in the territory, I have been
greatly impressed by the singular determination
with which the Administering Authority has ap-
plied antierosive measures and reclaimed arable
lands.

My delegation, Mr. President, has two sugges-
tions to make that it believes could increase some-

May 20, J 957

819

what the territory's economic potential. First, it
has sought in vain in the report of the Adminis-
tering Authority^ for information regarding
tourism in the territory. Yet here is an area in
the heart of Central Africa that offers unique
attractions to the tourist. The African life is ex-
ceedingly colorful— the Watutsi dancers are justly
world famous, native artifacts are prize items in
anyone's collection, the natural scenery is superb,
including as it does the source of the Nile River,
a large national park teaming with wild life, and
active volcanos. The tourist who ventures into
the area need only extend his stay by a few more
days and at little extra expense enjoy the mag-
nificent sight of Lake Kivu, the Albert National
Park, and the Mountain of the Moon. Parts of
Uganda adjacent to Euanda-Urundi offer un-
paralleled tourist opportunities. My delegation
would like to suggest therefore that the Adminis-
tering Authority seriously study this matter with
a view to exploiting these natural resources for the
benefit of the territory.

Secondly, my delegation has noted that the im-
port and export trade, as well as the wholesale
business, is largely m the hands of Europeans and
Asians; that 1,982 Africans were engaged in re-
tail trade in 1955. Some of these latter possess
capital of $2,000 while the average is about $300.
It is also noted that Africans are beginning to
enter the transport business, brick manufacturing,
and the elaboration of artifacts. The special rep-
resentative has stated that, in spite of intense and
sustained efforts, metliods have not yet been
worked out whereby Africans may own their own
land. Land ownership is normally one of the
principal bases for the extension of credit. It
seems to us therefore that this is a situation that
should be remedied as soon as possible not only in
order to increase the participation of Africans in
the wealth-producing factors of tlie territory but
also for the future development of an African
middle class. Admittedly this is a very complex
and difficult problem. Africans who have the use
of land at reasonable rates or even without expense
often do not see the advantages in ownersliip with
its inevitable tax liability. My delegation notes
with satisfaction that the Administering Author-
ity is seriously studying the jn'oblem and hopes
that its effort may result in the early introduction

of legislation that will furnish the African with
credit facilities based on land ownership.

In the field of education my delegation notes
with great satisfaction that 20 percent of the
budget is devoted to this field. It has also noted
the warning of the Special Representative that
there are financial and human limitations on the
extent to wliich education can be greatly extended
in the territory. On the other hand, we have the
extremely valuable report of the United Nations
Educational, Scientific and Cultural Organiza-
tion, which advances sensible and seemingly real-
istic suggestions whereby the Administering Au-
thority might improve educational facilities.- Of
course, there can never be enougli education even
in the most civilized countries, and facilities have
to be tailored to fit revenues. But education is an
investment in the future, and it is the earnest hope
of my delegation that the Administering Author-
ity will give most serious thought to these Unesco
suggestions and where at all possible put them into
effect. In one particular respect it is believed
progress should be made. That is to try to clieck
the great number of students who now leave school
between the 5th and 6th years. Cannot the Ad-
ministering Authority make a conscientious effort
to encourage those 5th-year students who show the
greatest promise to continue with their studies?
It is from such a group that the future leaders
of the territory will emerge.

In general, there is a great deal that is hearten-
ing in the territory under review. We feel that
the Administering Authority is to be sincerely
congratulated for its administration and com-
mended for carrying out its part of the contract
it concluded 10 years ago with the United Nations.

In conclusion, Mr. President, my delegation
would like again to thank the Belgian Representa-
tive and the Belgian Special Representative for
the courtesy which they have sliown in replying to
questions and for their willingness to meet all rea-
sonable demands of the Council.

STATEMENT BY MR. SEARS ON FRENCH CAM-
EROONS, APRIL 4

U.S./U.N. press release 2056 dated April 3

Last year in discussing the Cameroons the
United States Representative held that economic,

' i;.N. doc. T/12S2.
820

' U.N. doc. T/1304.

Department of Slate Bulletin

social, and educational conditions were very
clearly moving ahead.^ He also added that he
was confident that the French authorities would
help the Cameroonians in the near future to make
equal progress in the political field. It is there-
fore most gratifying to find that this is precisely
what has happened during the past year.

News stories appearing in the press indicate
that the elections which were held last Sunday
[March 31] in French Africa have produced vic-
tories for moderate forces seeking evolution in
collaboration with France. This would seem to
be an endorsement of the policy which France is
following under the Ovei"seas Refonn Act. Ac-
cording to this policy, instead of waiting for ex-
treme nationalism to build up demands for abrupt
independence, it is the purpose of the territorial
administration to outline clearly for its dependent
peoples the course which should be taken toward
self-government.

A very distinguished colonial administrator
recently expressed the view that the only plausible
solution for modem colonialism in Africa is that it
must operate in partnership with African nation-
alism. Although this might be likened to catch-
ing a lion by the tail, it is hard to see how those
who are responsible for the liquidation of colonial
rule have any other choice.

African nationalist movements are going ahead
in leaps and liounds, and nothing that anyone may
say or do is going to halt or reverse the trend.

Accordingly, if progress is to be orderly, the
leaders of these movements must be convinced
that the colonial administrators are on their side
and not against them. Only in such an atmos-
phere of trust can they become fully convinced
about the advantages of developing free, demo-
cratic institutions— without which the welfare of
their people can never be permanently assured.
Unless they can be so convinced, the temptation
will become great for them to seek other means
for pushing their homeland ahead — means which
would endanger their future freedoms. In other
words, the orderly growth of durable self-govern-
ment becomes impossible imless Africans are as-
sured that colonial administrations are cooper-
ating with them as partners in the pi'omotion of
their aspirations for self-government.

It was such cooperation tliat provided the key

' Bitlu;tin of Apr. 30, lO.'.O, p. 730.
May 20, 7957

to the success with which the powers of govern-
ment were recently transferred from Great Brit-
ain to the new and fully independent state of
Ghana. A great deal of favorable and well-
desei-ved publicity has been given to this
accomplishment.

But it would be inexcusably shortsighted, es-
pecially in the Trasteeship Comicil, if we did not
also recognize the scope and significance of the
new statutes which are being put into effect
throughout French Africa. As the Council
knows, these reforms stem from the veiy liberal
decrees authorized by the Overseas Reform Act
of last year. Under these decrees, the Trusteeship
Council will note that the Trust Territories of
Togoland and the Cameroons have become the
spearheads for the political reforms which may
later be applied to other French ten'itories in
Africa.

French administrators have described the policy
behind these refonns as the opposite of "too little
and too late." Obviously this policy is fast-
moving and liberal in its approach and is intended
to keep ahead of African demands. As such it in-
volves serious administrative risks. But at this
advanced stage in the evolution of West Africa
toward self-government, a more cautious approach
might contahi equal if not greater risks.

At the same time one cannot close one's eyes to
the fact that party politics in Africa is still highly
volatile. Evidence of this is seen in recent out-
breaks of violence not only in the Cameroons but
in nearby territories as well. Some of them were
Communist-inspired and are a significant warning
that political and tribal disorders are often" close
to the surface. The one seems to stimulate the
other.

We hope that during the concluding phase of
French colonial administration African leader-
ship will develop a capacity for self-restraint so
that maintenance of public order may never be in
doul)t. However, this is easier said than done.
The exercise of self-restraint during the excite-
ment of an election campaign is difficult in all
countries, let alone French ten-itories in Africa
where the pace of political advance is under con-
stant acceleration.

Two yeare ago tlie sweeping political reforms
which are now in prospect for the French Camer-
oons would have been unbelievable.

Although the new statute for the Cameroons

821

may not be finally enacted until next month, the
degree of self-government which it will confer
upon the trust territory is already apparent.
Universal adult suffrage has been achieved, and in
spite of Communist-inspired disturbances par-
ticipation of the African voters in the recent
legislative elections compares favorably to voter
participation in coimtries which have had genera-
tions of experience in the conduct of free elections.

Also most important is that the elections in the
Cameroons were based on a common voters roll —
on a one-man, one-vote basis. It is interesting to
note here that except among nomadic tribes the
principle of imiversal, common-roll suffrage — at
least for men — has been established in every Afri-
can trust territory but one.

The Legislative Assembly in the Cameroons will
now have actual power to legislate on most matters
affecting the daily lives of the people. Further-
more, there will be a system of ministerial respon-
sibility to the elected members of the Assembly.

If the summation of all these responsibilities
does not spell internal self-government, it comes
very close to that objective. At all events the final
phase of political and economic progress toward
self-government is definitely at hand.

I include political and economic progress to-
gether because my delegation feels strongly that
they go hand in hand. It is impossible to have
much of one without the other.

However, I do not intend to elaborate on the
economic situation in the Cameroons, except to
make three brief points :

First, we hope that stabilization funds can be
effectively used to protect the coffee, cocoa, and
cotton industries from the disastrous effects of
worldwide price fluctuations.

Second, we commend the French authorities for
introducing methods which instruct the people
about the necessity for conserving their forest
reserves. They are a vital source of wealth.

And third, we hope it may be possible next
year for us to be informed about the bearing of
the recently signed Common Market Agreement
on the economy of the Cameroons. It may help
the territoiy to stand on its own feet after it has
graduated from the trusteeship system.

We are also pleased to se« that Africans are
participating more and more in all aspects of
the economic development of their territory.

Mr. President, I cannot conclude without saying

that the French Government, in applying the
provisions of the Overseas Reform Act, has under-
taken a very bold and interesting experiment in
colonial administration. The United States dele-
gation congratulates them for the actions they
have taken. They have created an opportunity for
Cameroonians to demonstrate the strength and
courage and moral stamina which has marked
African leadership in those countries which have
already achieved their freedom. I feel sure this
Council will lend every encouragement to the
French administration and the Cameroonian peo-
ple as they proceed together along the road which
lies ahead.

STATEMENT BY MR. McGREGOR ON BRITISH
CAMEROONS, APRIL 15

U.S/U.N. press release 2659 dated April 16

The United States delegation wishes to con-
gratulate the Cameroonian people for the pro-
gress they have made toward self-government.
Cooperation between their political leaders and
the British Administering Authority has been
most commendable. Trusteeship in this territory
has virtually run its course. The other day, the
Nigerian House of Assembly unanimously
adopted a resolution calling for independence in
1959. This means that, if this target date is di-
rectly or indirectly approved by the forthcoming
Constitutional Conference in London, the question
of termination of trusteeship for the British
Cameroons may soon be before the United Na-
tions. Wlien that time comes, my delegation has
no doubt that the Cameroonian people, of the
north as well as the south, will be enabled freely to
choose their future status.

It is clear from the observations of botli French
and British authorities in the Trust Territories of
the Cameroons that the issue calling for unifica-
tion of the Cameroons has been overemphasized.
This, of course, stems largely from the agitation
of the Communist-trained Urc [Union des popu-
lations du cameroun] leaders who pretend to speak
for all the people of both territories. But the Urc,
whicli has been dissolved in the French Cameroons
for its murderous record against innocent Afri-
cans, is now under investigation for subversive
activities on the British side of the frontier. It
will be interesting to read the liiulings of the At-

822

Deparlmenf of State Bvlletin

torney General in the British investifiation. Tlie
rapid political progress which is scheduled for the
Cameroons will be seriously disrupted if organiza-
tions devoted primarily to the Communist interest
are permitted to interfere with the democratic
process.

My delegation has noted the interest of vari-
ous members of the Council in the question of the
exercise of tlie franchise in tlie Trust Territory of
the British Cameroons. From the replies of the
Special Representative to various questions regard-
ing the eligibility of women to vote, we learn that
women are eligible to vote provided they pay tax
but that few women pay tax. The Special Repre-
sentative explained to us that the right of fran-
chise was subject to a tax and that this was done
primarily in order to deny the vote to non-Camer-
oonians — seasonal workers and traders, princi-
pally from the French Cameroons. I am sure
tliat the Administering Authority will permit the
observation that an injustice would seem to be
worked on Cameroonian women in this instance
simply for the purpose of excluding from the
franchise a class of non-Cameroonians who would
probably have very little interest in any case in
exercising this right. Would it not be better to
amend legislation and procedures in order to cor-
rect this seeming injustice, or to do away with the
tax qualification altogether? There is something
to be said for the often-declared principle that
no one in a democratic state should be obliged to
pay for the right to vote.

With regard to political developments in the
northern part of the trust territory under consid-
eration, we are satisfied with the statement of the
Administering Authority that the people in this
area are content to see their political fortmies
tied to the adjoining Northern Territory of
Nigeria.

On the economic side we realize the fragile na-
ture of the future of the territory and the enor-
mity of problems facing the Administering Au-
tliority in preparing the territory to stand on its
own feet. We note, however, several encouraging
factors, particularly that new and substantial in-
vestments have been made recently in the terri-
tory. The establisliment of a Northern Region
Development Corporation is likewise a hopeful
sign, as well as the avowed intentions of the
Southern Cameroons government to encourage
overseas investors. We were pleased to note the

assurance of the representatives of the United
Kingdom that the Administering Authority is
likewise encouraging new capital to invest in the
area.

We are glad that the Administering Authority
places a heavy accent on the African Cooperative
Movement and assigns to this movement a major
place in the economic development of the territory.

Wiat the Special Representative had to say re-
garding the difficulty of road building in the ter-
ritory could not fail to impress the Council. Com-
munications are, as he said, the key to the eco-
nomic future and will have a bearing on the so-
cial and educational advancement of the people
of the territory. My delegation need not empha-
size the willingness of the United States to give
careful and thorough study to projects where
technical guidance and assistance might be held
desirable and put forward by the appropriate au-
thorities. The grant of $140,000 by the Inter-
national Cooperation Administration of the
United States Govermnent for reconstruction and
tarring of the Ikom-Memfe road is an indication
of the type of useful project we have in mind.

I feel sure that all those responsible for the po-
litical and economic future of African territories
will have read with interest the report of Vice
President Nixon,* who has just returned from an
extended tour of parts of the African continent.

U.S. Delegations to
InternationaB Conferences

World Health Assembly

The Department of State announced on May
3 (press release 263) that the U.S. Government
will be represented by the following delegation at
the 10th World Health Assembly convening at
Geneva, Switzerland, May 7-27, 1957 :

Delegates

Dr. Leroy E. Burney, chairman. Surgeon General, De-
partment of Health, Education, and Welfare

Dr. H. van Zile Hyde, Chief, Division of International
Health, Bureau of State Services, U.S. Public Health
Service, Department of Health, Education, and Wel-
fare

Dr. James R. Reuling, American Medical Association,
Lake Butler Estates, Windermere, Fla.

'Ibid., Apr. 22, 1957, p. 635.

May 20, 1957

823

Alternate Delegates

Howard B. Calderwood, Office of International Economic

and Social Affairs, Department of State
Dr. Aims C. SIcGuiness, Special Assistant for Health and

Medical Affairs, Department of Health, Education, and

Welfare

Congressional Advisers

John E. Fogarty, House of Representatives
Charles A. Wolverton, House of Representatives

Advisers

Dr. Lester W. Burliet, Dean, Dental School, University
of Pennsylvania, Philadelphia, Pa.

Col. Robert L. Callison, USA, Office of the Surgeon Gen-
eral, Department of the Army

Dr. Eugene P. Campbell, Deputy Chief, Public Health Di-
vision, International Cooperation Administration

Edwin L. Crosby, Executive Director, American Hos-
pital Association, Baltimore, Md.

Dr. Richard K. C. Lee, President, Board of Health, Hono-
lulu. T.H.

Blucher A. Poole, Chief, Bureau of Environmental Sani-
tation, State Board of Health, Indianapolis, Ind.

David H. Popper, Deputy U.S. Representative for Inter-
national Organizations, American Consulate General,
Geneva, Switzerland

Dr. Ernest L. Stebbins, Director, School of Hygiene and
Public Health, Johns Hopliins University, Baltimore,
Md.

Dr. Franklin D. Yoder, President, State and Territorial
Health Officers, Cheyenne, Wyo.

Viola R. Pinanski, Member, National Advisory Neurologi-
cal Diseases and Blindness Council, National Institute
of Health, Brookline, Mass.

Robert Olaf Waring, Office of International Administra-
tion, Department of State

Laurence Wyatt, Division of International Health, Bureau
of State Services, U.S. Public Health Service, Depart-
ment of Health, Education, and Welfare

Secretary of Delegation

Leo W. Garvey, Office of International Conferences, De-
partment of State

The World Health Assembly is the supreme
autliority of the World Health Or<ranization
(Who), a specialized agency of the United Na-
tions. At the present time there are 84 full mem-
bers of the Who and 4 associate members — Ghana,
Nigeria, Rhodesia and Nyasaland, and Sierra

Leone. The Assembly meets in regular annual
session and determines the policies of the organi-
zation.

Besides reviewing the work of the Who during
1956 as presented in the report of the Director
General, the participants in the lOtli World
Health Assembly will discuss the program and
budget of Who for 1958. Other items on the pro-
visional agenda for discussion include Who's par-
ticipation in the expanded program of technical
assistance; peaceful uses of atomic energy in tlie
health field; international quarantine: malaria
eradication; progress in the evaluation and pro-
duction of typhoid, smallpox, and triple diph-
theria-pertussis-tetanus vaccines ; Who's relations
with the U.N. Children's Fund (Unicef) ; and
a review of World Health Organization agree-
ments with other specialized agencies.

The work of the World Health Organization
embraces international programs on a wide va-
riety of public health questions: the control and
eradication of communicable diseases; measures
for the improvement of maternal and child liealth;
dental health and occupational healtli; and the
provision of advice and assistance to national gov-
ernments in developing and encouraging the ap-
plication of higher standards in respect to such
activities as nursing, public health administration,
and professional education and training. In ad-
dition, the Who undertakes or participates in
technical health work of international significance
through establishing biological standards, deter-
mining addiction-producing properties of drugs,
exchanging scientific information, preparing in-
ternational sanitary regulations, revising the in-
ternational list of diseases and causes of death,
and collecting and disseminating epidemiological
information.

The 9th World Health Assembly was held at
Geneva, May 8-25, 1956. The U.S. Government
has invited the World Health Organization to
hold its 11th World Health Assembly in the
United States in 1958.

824

Department of State Bulletin

TREATY INFORMATION

Air Transport Agreement Between United States and Republic of Korea

Press release 238 dated April 24
DEPARTMENT ANNOUNCEMENT

An air transport agreement between the Govern-
ments of the United States and the Republic of
Korea was signed on April 24 in the Department
of State. Under Secretary of State Clii'istian
Herter signed the agreement on behalf of the
United States Government. His Excellency You
Chan Yang, Ambassador of Korea, signed on be-
half of the Government of the Eepiiblic of Korea.

The new agreement replaces the provisional
agreement on civil aviation between the two coun-
tries which has been in effect since June 29, 1949.
It contains the fundamental principles relating
to air transport operations which have been stand-
ard in such agreements entered into by the United
States with other countries since 1946. Under
its terms, U.S. airlines are authorized to provide
commercial service from the United States via
intermediate points to Seoul, Korea, and beyond.
Pureuant to the terms of the earlier agreement,
Northwest Airlines has been operating services to
Seoul from Seattle via Alaska and Japan imder a
certificate issued by the Civil Aeronautics Board.
The new agreement provides for a route to be
operated by Korean-flag airlines from Korea
via intei'mediate points to Alaska and the tenninal
point of Seattle. No specific route to the United
States for Korean-flag airlines was described in
the earlier agreement between the two countries.

The chairman of the U.S. delegation assigned
to the negotiations for this agi'eement was Howard
L. Parsons, Director of the Office of Northeast
Asian Affairs, Department of State. Minister
Pyo Wook Han, of the Korean Embassy, was chief
delegate of the Republic of Korea delegation.

The agreement with Korea is the fourth bi-

lateral air transport agreement entered into by
the United States in 1957.^

TEXT OF AGREEMENT

AIR TRANSPORT AGREEMENT BETWEEN THE GOV-
ERNMENT OP THE UNITED STATES OF AMER-
ICA AND THE GOVERNMENT OF THE REPUBLIC
OF KOREA

The Goyernment of the United States of America and
the Government of The Republic of Korea,

Desiring to conclude an Agreement for the purpose of
promoting air communications between their respective
territories.

Have accordingly appointed their plenii)otentiaries for
this purpose as follows :

The Government of the United State® of America :
Christian A. Herter, Under Secretary of State;

The Government of the Republic of Korea :

You Chan Yang, Ambassador of the Republic of
Korea ;

Who. having exhibited and exchanged tlieir full powei-i?
and found them to be in due form, have agreed as follows :

Abticle 1

(A) The term "aeronautical authorities" shall mean
in the case of the United States of America, the Civil
Aeronautics Board and any person or agency authorized
to perform the functions exercised at the present time
by the Civil Aeronautics Board and, in the case of the
Republic of Korea, the Ministry of Transportation and
any person or agency authorized to perform the functions
exercised at present by the said Ministry of Transpor-
tation.

(B) The term "designated airline" shall mean an air-
line that one contracting party has notified the other

' For texts of agreements signed with Iran, Mexico,
and the Netherlands, see Bulletin of Feb. 4, 1057, p. 198;
Apr. 8, 19.57, p. 575 ; and May 6, 1957, p. 747.

May 20, 7957

825

contracting party, In writing, to be the airline wliicli will
operate a specific route or routes listed In the Schedule
of this Agreement.

(C) The term "territory" in relation to a State shall
mean the land areas and territorial waters adjacent
thereto under the sovereignty, suzerainty, protection,
mandate or trusteeship of that State.

(D) The term "air service" shall mean any scheduled
air service performed by aircraft for the public trans-
port of passengers, mail or cargo.

(E) The term "international air service" shall mean
an air service which passes through the air space over
the territory of more than one State.

(F) The term "stop for non-trafSc puriwses" shall
mean a landing for any purpose other than taking on or
discharging passengers, cargo or mail.

Article 2

Each contracting party grants to the other contracting
party rights necessary for the conduct of air services by
the designated airlines, as follows : the rights of transit,
of stops for non-traffic purposes, and of commercial entry
and departure for international traffic in passengers, car-
go, and mail at the points in its territory named on each
of the routes specified in the appropriate paragraph of
the Schedule annexed to the present Agreement

Article 3

Air Service on a specified route may be inaugurated by
an airline or airlines of one contracting party at any time
after that contracting party has designated such airline
or airlines for that route and the other contracting party
has given the appropriate operating permission. Such
other party shall, subject to Article 4, be bound to give this
permission provided that the designated airline or airlines
may be required to qualify before the competent aero-
nautical authorities of that party, under the laws and
regulations normally applied by these authorities, before
being permitted to engage in the operations contemplated
by this Agreement.

Article 4

Bach contracting party reserves the right to withhold
or revoke the operating permission provided for in Article
3 of this Agreement from an airline designated by the
other contracting party in the event that it is not satisfied
that substantial ownership and effective control of such
airline are vested in nationals of the other contracting
party, or in case of failure by such airline to comply with
the laws and regulations referred to in Article 5 hereof,
or in case of the failure of the airline or the government
designating it otherwise to perform its obligations here-
under, or to fulfill the conditions under which the rights
are granted In accordance with this Agreement.

Article 5

(A) The laws and regulations of one contracting party
relating to the admission to or departure from its territory
of aircraft engaged in international air navigation, or to
the operation and navigation of such aircraft while within

its territory, shall be applied to the aircraft of the airline
or airlines designated by the other contracting party, and
shall be complied with by such aircraft upon entering or
departing from and while within the territory of the first
contracting party.

(B) The laws and regulations of one contracting party
relating to the admission to or departure from its terri-
tory of passengers, crew, or cargo of aircraft, such as
regulations relating to entry, clearance, immigration,
passports, customs, and quarantine shall be complied with
by or on behalf of such passengers, crew or cargo of the
other contracting party upon entrance into or departure
from, and while within the territory of the first contract-
ing party.

Article 6

Certificates of airworthiness, certificates of competency
and licenses issued or rendered valid by one contracting
party, and still in force, shall be recognized as valid by
the other contracting party for the purpose of operating
the routes and services provided for in this Agreement,
provided that the requirements under which such cer-
tificates or licenses were issued or rendered valid are
equal to or above the minimum standards which may be
established pursuant to the Convention on International
Civil Aviation. Each contracting party reserves the
right, however, to refuse to recognize, for the purpose of
flight above its own territory, certificates of competency
and licenses granted to its own nationals by another
State.

Article 7

In order to prevent discriminatory practices and to
assure equality of treatment, both contracting parties
agree that :

(a) Each of the contracting parties may impose or
permit to be imposed just and reasonable charges for the
use of public airports and other facilities under its con-
trol. Each of the contracting parties agrees, however,
that these charges shall not be higher than would be paid
for the use of such airports and facilities by its national
aircraft engaged in similar international services.

(b) Fuel, lubricating oils, consumable technical sup-
plies, spare parts, regular equipment, and stores intro-
duced into the territory of one contracting party by the
other contracting party or its nationals, and intended
solely for use by aircraft of such contracting party shall
be exempt on a basis of reciprocity from customs duties,
inspection fees and other national duties or charges.

(c) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores re-
tained on board aircraft of the airlines of one contracting
party authorized to operate the routes and services pro-
vided for in this Agreement shall, upon arriving in or
leaving the territory of the other contracting party, be
exempt on a basis of reciprocity from customs duties. In-
spection fees and other national duties or charges, even
though such supplies be used or consumed by such air-
craft on flights in that territory.

(d) Fuel, lubricating oils, other consumable technical
supplies, spare parts, regular equipment, and stores taken
on l)oard aircraft of the airlines of one contracting i>arty

826

Department of State Bulletin

in the territory of the other and used in international
services shall be exempt on a basis of reciprocity from
customs duties, excise taxes, inspection fees and other
national duties or charges.

Abticle 8

There shall be a fair and equal opportunity for the air-
lines of each contracting party to operate on any route
covered by this Agreement.

Abticle 9

In the operation by the airlines of either contracting
party of the trunli services described in this Agreement,
the interest of the airlines of the other contracting party
shall be taken into consideration so as not to affect un-
duly the services which the latter provides on all or part
of the same routes.

Aeticxb 10

The air services made available to the public by the
airlines operating under this Agreement shall bear a close
relationship to the requirements of the public for such
services.

It is the understanding of both contracting parties that
services provided by a designated airline under the present
Agreement shall retain as their primary objective the
provision of capacity adequate to the traffic demands be-
tween the country of which such airline is a national and
the countries of ultimate destination of the traffic. The
right to embark or disembark on such services interna-
tional traffic destined for and coming from third countries
at a point or points on the routes specified in this Agree-
ment shall be applied in accordance with the general
principles of orderly development to which both contract-
ing parties subscribe and shall be subject to the general
principle that capacity should be related :

(a) to traffic requirements between the country of
origin and the countries of ultimate destination of the
txafflc ;

(b) to the requirements of through airline operation;
and,

(c) to the traffic requirements of the area through
which the airline passes after taking account of local
and regional services.

Abticle 11

Kates to be charged on the routes provided for in this
Agreement shall be reasonable, due regard being paid
to all relevant factors, such as cost of operation, reason-
able profit, and the rates charged by any other carriers,
as well as the characteristics of each service, and shall be
determined in accordance with the followLng paragraphs :

(A) The rates to be charged by the airlines of either
contracting party between points in the territory of the
United States of America and points in the territory of
the Republic of Korea referred to in the annexed Sched-
ule shall, consistent with the provisions of the present
Agreement, be subject to the approval of the aeronautical
authorities of the contracting parties, who shaU act in
accordance with their obligations under this Agreement,
within the limits of their lecal powers.

(B) Any rate proposed by an airline of either contract-
ing party shall be filed with the aeronautical authorities
of both contracting parties at least thirty (30) days be-
fore the proposed date of introduction ; provided that this
period of thirty (30) days may be reduced in particular
cases if so agreed by the aeronautical authorities of
each contracting party.

(C) During any period for which the Civil Aeronautics
Board of the United States of America has approved the
traffic conference procedures of the International Air
Transport Association (hereinafter called lATA), any
rate agreements concluded through these procedures and
involving United States airlines will be subject to ap-
proval of the Board. Rate agreements concluded through
this machinery may also be required to be subject to the
approval of the aeronautical authorities of the Govern-
ment of the Republic of Korea pursuant to the principles
enunciated in paragraph (A) above.

(D) The contracting parties agree that the procedure
described in paragraphs (E), (P) and (G) of this Article
shall apply :

1. If, during the i)eriod of the approval by both con-
tracting parties of the lATA traffic conference procedure,
either, any specific rate agreement is not approved within
a reasonable time by either contracting party, or, a con-
ference of lATA is unable to agree on a rate, or

2. At any time no lATA procedure is applicable, or

3. If either contracting party at any time withdraws
or fails to renew its approval of that part of the lATA
traffic conference procedure relevant to this Article.

(E) In the event that power is conferred by law upon
the aeronautical authorities of the United States of
America to fix fair and economic rates for the transport
of persons and property by air on international services
and to susi)end proposed rates in a manner comparable
to that in which the Civil Aeronautics Board at present
is empowered to act with respect to such rates for the
transport of i)ersons and property by air within the
United States of America, each of the contracting parties
shall thereafter exercise its authority in such manner as
to prevent any rate or rates proposed by one of its air-
lines for services from the territory of one contracting
party to a point or points in the territory of the other
contracting party from becoming effective, if in the judg-
ment of the aeronautical authorities of the contracting
party whose airline or airlines is or are proposing such
rate, that rate is unfair or uneconomic. If one of the
contracting parties on receipt of the notification referred
to in paragraph (B) above is dissatisfied with the rate
proposed by the airline or airlines of the other contract-
ing party, it shall so notify the other contracting party
prior to the expiry of the first fifteen (15) of the thirty
(30) days referred to, and the contracting parties shall
endeavor to reach agreement on the appropriate rate.

In the event that such agreement is reached, each con-
tracting party will exercise its best efforts to put such
rate into effect as regards its airline or airlines.

If agreement has not been reached at the end of the
thirty (30) day period referred to in paragraph (B)
above, the proposed rate may, unless the aeronautical au-

Moy 20, 1957

827

thorities of the country i>f the air carrier concerned see
fit to suspend its application, go Into effect provisionally
pending the settlement of any dispute in accordance with
the procedure outlined in paragraph (G) below.

(F) Prior to the time when such power may be con-
ferred upon the aeronautical authorities of the United
States of America, if one of the contracting parties is
dissatisfied with any rate proposed by the airline or
airlines of either contracting party for services from the
territory of one contracting party to a point or points in
the territory of the other contracting party, it shall so
notify the other prior to the expiry of the first fifteen
(15) of the thirty (30) day period referred to in para-
graph (B) above, and the contracting parties shall en-
deavor to reach agreement on the appropriate rate.

In the event that such agreement is reached, each con-
tracting party will use its best efforts to cau.se such
agreed rate to be put into effect by its airline or airlines.

It is recognized that if no such agi'eement can be
reached prior to the expiry of such thirty (30) days, the
contracting party raising the objection to the rate may
take such steps as it may consider necessary to prevent
the inauguration or continuation of the service in question
at the rate complainetl of.

(G) When in any case under paragraphs (E) or (F)
of this Article the aeronautical authorities of the two
contracting parties cannot agree within a reasonable time
upon the appropriate rate after consultation initiated by
the complaint of one contracting party concerning the
proposed rate or an existing rate of the airline or airlines
of the other contracting party, upon the request of either,
the terms of Article 13 of this Agreement shall apply.

Article 12

Consultation between the competent authorities of both
contracting parties may be requested at any time by either
contracting party for the purpose of discussing the inter-
pretation, application, or amendment of the Agreement or
Schedule. Such consultation shall begin within a period
of sixty (60) days from the date of the receipt of the
request by the Department of State of the United States
of America or the Ministry of Foreign Affairs of the Re-
public of Korea as the case may be. Should agreement
be reached on amendment of the Agreement or its route
schedule, such amendment will come into effect upon
confirmation by an exchange of diplomatic notes.

Article 13

Except as otherwise provided in this Agreement, any
dispute between the contracting parties relative to the
interpretation or application of this Agreement which
cannot be settled through consultation shall be submitted
for an advisory report to a tribunal of three arbitrators,
one to be named by each contracting party, and the third
to be agreed upon by the two arbitrators so chosen, pro-
vided that such third arbitrator shall not be a national of
either contracting party. Bach of the ccmtracting parties
shall designate an arbitrator within two months of the
(late of delivery by either party to the other party of a
diplomatic note reqiiesting arbitration of a dispute; and
the third arbitrator shall be agreed upon within one
month after such period of two months.

If either of the contracting parties fails to designate its
own arbitrator within two months, or if the third arbi-
trator is not agreed upon within the time limit indicated,
either party may request the President of the Interna-
tional Court of Justice to make the necessary appoint-
ment or appointments by choosing the arbitrator or
arbitrators.

The contracting parties will use their best efforts under
the powers available to them to put into effect the opinion
expressed in any such advisory report. A moiety of the
expenses of the arbitral tribunal shall be borne by each
party.

Article 14

This Agreement, all amendments thereto, and contracts
connected therewith shall be registered with the Inter-
national Civil Aviation Organization.

Article 15

If a general multilateral air transport Convention ac-
cepted by both contracting parties enters into force, the
present Agreement shall be amended so as to conform
with the provisions of such Convention.

Article 16

Either of the contracting parties may at any time notify
the other of its intention to terminate the present Agree-
ment. Such a notice shall be sent simultaneously to the
International Civil Aviation Organization. In the event
such communication is made, this Agreement shall ter-
minate one year after the date of its receipt, unless by
agreement between the contracting parties the notice of
intention to terminate is withdrawn before the expiration
of that time. If the other contracting party fails to ac-
knowledge receipt, notice shall be deemed as having been
received fourteen days after its receipt by the Interna-
tional Civil Aviation Organiziition.

Article 17

This Agreement will come into force on the day it is
signed.

In witness wheeeop, the undersigned, being duly au-
thorized by their respective Governments, have signed
the present Agreement.

Done in duplicate at Washington this twenty-fourth day
of April, 1057, in the English and Korean languages, each
of which shall be of equal authenticity.

For the Government of the United States of America :

Christian A. Herter
For tlie Government of the Republic of Korea :

You Chan Yang

SCHEDULE

1. An airline or airlines designated by the Government
of the United States shall be entitled to operate air serv-
ices on each of the air routes specified via intermediate
points, in both directions, to make scheduled landings in
the Kepid)lic of Korea at the points specified in this
paragraph :

From points in the United States of America to Seoul
and beyond.

828

Department of State Bulletin

i;. An airline or airlines designated by the Government
of the Republic of Korea shall be entitled to oix^rate air
servifes on each of the air routes specified via inter-
mediate points, in both directions, and to malve scheduleil
landings in the United States at the points specified in
this paragraph :

From points in the Republic of Korea to Alaska and
Seattle.

3. Points on any of the specified routes may at the op-
tion of the designated airline be omitted on any or all
flights.

Surplus Agricultural Commodity
Agreement With Peru

Press release 258 dated May 2

The United States and Peru on May 2 signed an
agreement authorizinc: the sale to Peru, through
private U.S. traders, of wheat and wheat flour to
a total value of $3.9 million, including ocean trans-
portation. These sales are being made under au-
thority and provision of the Agricultural Trade
Development and Assistance Act of 1954, as
amended. The agreement was signed at Lima by
Peruvian Foreign Minister Manuel Cisneros
Sanchez and U.S. Ambassador Theodore C.
Achilles.

This agreement provides that payments under
the sales program will be made in Peruvian soles.
A substantial part of all soles accruing will be
earmarked for loans designed to contribute to
Peru's economic development and will be repay-
able in dollars or soles under the terms of a supple-
mental loan agreement which will be concluded at
a later date. The balance will be reserved for the
use of the United States in Peru.

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency.
Done at New York October 26, 1956."
Ratification deposited: Pakistan, May 2, 1957.

Automotive Traffic

Convention concerning customs facilities for touring.
Done at New York June 4, 1954.*
Ratifieation deposited: Egypt, April 4, 1957.

Customs convention on temporary importation of private
i-oad vehicles. Done at New York June 4, 1954.'
h'dtification deposited: Egypt, April 4, 1957.

Aviation

Convention for unification of certain rules relating to
international transportation by air, and ■Klditional
protocol. Concluded at Warsaw Octolier 12, 1929. En-
tered into force Fel)ruary 13, 1933. 49 Stat. .StMlO.
Notification -'that it conxiders itself tioiDid" deposited:
Laos, May 9, 195G.

Customs Tariffs

Convention creating the International Union for the Pub-
lication of Customs TarilTs, regulations of execution,
and final declarations. Signed at Bru.ssels July 5, 1890.
Entered into force ApvU 1. 1891. 26 Stat. 1518.
Adherence deposited : Morocco, March 27, 1957.

Protocol modifying the convention signed at Brussels
July 5, 1890 (26 Stat. 1518), creating an International
Union for the Publication of (Aistoms Tariffs. Done
at Brussels December 16, 1949. Entered into force
May 5, 1950.'
Notification of adherence given: Morocco, April 23, 1957.

Fisheries

Protocol amending the international convention for the
northwest Atlantic fisheries of February 8, 1949 (TIAS
2089). Done at Washington June 25, 1956.'
Ratifieation deposited: Spain, May 2, 1957.

Health

Constitution of the World Health Organization. Done at
New York July 22, 1946. Entered into force April 7,
1948. TIAS 1808.
Acceptance deposited: Ghana, April 8, 1957.

Safety at Sea

Convention on safety of life at sea. Signed at London
June 10, 1948. Entered into force November 19, 1952.
TIAS 2495.

Acceptance deposited: Czechoslovakia, March 25, 1957.
Notification ly Portugal of application to: Portuguese
territories, October 23, 1956.

Trade and Commerce

Protocol of rectification to the French text of the General
Agreement on Tariffs and Trade. Done at Geneva
June 15, 19.55. Entered into force October 24, 1956
(TIAS 3677).
Signature: Turkey, April 17, 1957.

Sixth protocol of supplementary concessions to the General

Agreement on Tariffs and Trade. Done at Geneva May

23, 19.56. Entered into force June 30, 1956 (TIAS 3591 ) .

Schedule of concessions entered into force: Denmark,

April 15, 1957 ; Austria, April 25, 1957.

Weather Stations

Agreement on North Atlantic ocean stations. Dated at
Paris February 25, 1954. Entered into force February
1,1955. (TIAS 3186).

Acceptances deposited: Norvyay, April 21, 1955; Ireland,
May 17, 1955; Denmark, June 1, 1955; Switzerland,
November 7, 1955 ; Netherlands, January 24, 19.56 ;
France, May 3, 1956 ; and Belgium, April 9, 1957.

Whaling

Protocol amending the international whaling convention
of 1946 (TIAS 1849). Done in Washington November
19, 1956.'

Ratification deposited: Union of South Africa, April 25,
1957.

' Not in force.
May 20, J 957

' Not in force for the United States.

829

BILATERAL

Ecuador

Agreement for financinK educational exchange programs.
Signed at Quito October 31, 1956. Entered into force
March 8, 1957 (date of publication in the Official Reg-
ister of Ecuador).

Agreement for the establishment and operation of a raw-
insonde observation station at Guayaquil, Ecuador.
Effected by exchange of notes at Quito April 24, 1957.
Enters into force on date of signature of an arrange-
ment embodying the technical details.

Ethiopia

Economic assistance agreement. Effected by exchange
of notes at Addis Ababa April 25, 1957. Entered into
force April 25, 1957.

Germany, Federal Republic

Agreement relating to the disbandment of the German
element of the Civilian Service Organization pursuant
to the Forces Convention (TIAS 3425). Effected by
exchange of notes at Bonn April 11, 1957. Entered into
force April 11, 1957.

Agreement supplementing the agreement of April 11, 1957,
relating to the disbandment of the German element of
the Civilian Service Organization pursuant to the
Forces Convention (TIAS 3425). Effected by ex-
change of notes at Bonn April 11, 1957. Entered into
force April 11, 1957.

Korea

Agreement amending the agricultural commodities agree-
ment of March 13, 1956, as amended (TIAS 3516, 3667,
and 3733). Effected by exchange of notes at Seoul
April 19, 1957. Entered into force April 19, 1957.

Turkey

Agreement to facilitate interchange of patent rights and
technical information for purposes of defense. Signed
at Ankara May 18, 1956.

Entered into force: April 2, 1957 (date of receipt by the
United States of notification of constitutional ap-
proval by Turkey).

DEPARTMENT AND FOREIGN SERVICE

Meeting of Foreign Service Institute
Advisory Committee

The Department of State announced on April 22
(press release 231) that the Advisory Committee
for the Foreign Service Institute was holding its
fifth meeting at Washington that day. Present
and future developments in the Institute's pro-
gi-am of in-service training for U.S. Foreign Serv-

ice officers and other Government employees en-
gaged in foreign affairs were to be considered.
This committee was appointed by Secretary Dulles
to advise the Institute. Since its last meeting in
January the only change in its composition has
been the addition of Gen. Alfred M. Gruenther,
president, American National Red Cross.

The purpose of the meeting on April 22 was to
discuss with the Institute director, Harold B.
Hoskins, developments in the Department's train-
ing programs since the last meeting, as well as
proposals for future training. It was reported to
the committee that during the first 9 months of
fiscal year 1957 there was a total of 4,459 students
enrolled in all Fsi programs. This represents a
14 percent increase over the corresponding period
in fiscal year 1956. In addition to the career train-
ing program the 1957 figures include intensive
full-time training of 150 Foreign Service officers
in 23 languages, a 30 percent increase in enroll-
ment over the corresponding period in 1956.

The committee was received by Under Secretary
Christian Herter and later reconvened in Mr.
Hoskins' office.

Those present, in addition to Mr. Hoskins, who
is deputy chairman of the committee, were :

Loy W. Henderson, Deputy Under Secretary for Admin-
istration and chairman of the committee

Robert D. Calkins, president, The Brookings Institution,
Washington, D.C.

Isaac W. Carpenter, Jr. (ex officio). Assistant Secretary-
Controller, Department of State

Robert Cutler, Special Assistant to the President

Gen. Alfred M. Gruenther, president, American National
Red Cross.

Clyde K. Kluckliohn, director. Laboratory of Social
Sciences, Harvard University

William L. Langer, chairman. Committee on Regional
Studies, Harvard University

Robert Newbegin (ex officio), Deputy Assistant Secretary
for Personnel, Department of State

Charles E. Saltzman, Goldman, Sachs & Company, New
York, N.Y.

Joseph C. Satterthwaite (ex officio). Director General of
the Foreign Service, Department of State

Henry M. Wriston, director. The American Assembly,
Columliia University

830

Department of State Bulletin

May 20, 1957

Index

Vol. XXXVI, No. 934

Africa. Trasteeship Council Reviews Progress in

Trust Territories (McGregor, Sears) .... 819

Agriculture

Quota on Imports of Butter Oil and Butter Substi-
tutes (Eisenhower) 817

Surplus Agricultural Commodity Agreement With

Peru 829

American Republics. United States Position on

Nicaraguan-Houduran Conflict (Drier) .... 811
Aviation. Air Transport Agreement Between
United States and Republic of Korea (text of

agreement) 825

Communism. The Public Relations of Dynamic

Peace (Berding) 805

Congress, The

Appeal for Partial Restoration of Proposed Cuts in

State Department Appropriations (Dulles) . . 795
Congressional Documents Relating to Foreign

Policy 818

Department and Foreign Service

Appeal for Partial Restoration of Proposed Cuts

tn State Department Appropriations (Dulles) . 795
Meeting of Foreign Servic* Institute Advisory Com-
mittee 830

The Public Relations of Dynamic Peace (Berding) . 805
Economic Affairs

Quota on Imports of Butter Oil and Butter Sub-
stitutes (Eisenhower) 817

The Road Ahead for Foreign Trade Policy

(Kalijarvi) 813

Educational Exchange. Appeal for Partial Res-
toration of Proposed Cuts in State Department

Appropriations (Dulles) 795

Health, Education, and Welfare. World Health

Assembly (delegation) 823

Honduras. United States Position on Nicaraguan-

Honduran Conflict (Dreier) 811

Hungary. U.S. Rejects Hungarian Charges Against

Captain Gleason (text of U.S. note) 810

International Organizations and Conferences
U.S. Delegation Leaves for NATO Council Meeting

(Dulles) 804

World Health Assembly (delegation) 823

Korea. Air Transport Agreement Between United
States and Republic of Korea (text of agree-
ment) 825

Mutual Security

A New Approach to Mutual Security (Dillon) . . SOD
The Public Relations of Dynamic Peace (Berding) . 805
Nicaragua. United States Position on Nicaraguan-

Honduran Conflict (Dreier) 811

Non-Self-Governing Territories. Trusteeship
Council Reviews Progress in Trust Territories

(McGregor, Sears) 819

North Atlantic Treaty Organization. U.S. Dele-
gation Leaves for NATO Council Meeting

(Dulles) 804

Peru. Surplus Agricultural Commodity Agree-
ment With Peru 829

Presidential Documents. Quota on Imports of But-
ter Oil and Butter Substitutes 817

Treaty Information

Air Transport Agreement Between United States

and Republic of Korea (text of agreement) . . 825

Current Actions 829

Surplus Agricultural Commodity Agreement With

Peru 829

United Nations

Trusteeship Council Reviews Progress in Trust

Territories (McGregor, Sears) 819

World Health Assembly (delegation) 823

Name Index

Berding, Andrew H 805

Dillon, Douglas 800

Dreier, John C 811

Dulles, Secretary 795, 804

Eisenhower, President 817

Gleason, Thomas R 810

Kalijarvi, Thorsten V 813

McGregor, Robert G 819, 822

Sears, Mason 820

Todd, J. C 810

Check List off Department of State
Press Releases: April 29-May 5

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

Press releases issued prior to April 29 which ap-
pear in this issue of the Bulletin are Nos. 231 of
April 22, 238, 240, and 243 of April 24, and 246 and
248 of April 25.
No. Date Subject

•250 4/29 Delegation to inauguration of Nieara-
guan President.

*251 4/29 Bliss nominated Ambassador to Ethio-
pia (biographic details).

♦252 4/29 Thompson nominated Ambassador to
U.S.S.R. (biographic details).

*253 4/29 McConaughy nominated Ambassador
to Burma (biographic details).

1254 4/29 Note to Hungary on postal cancella-
tion stamp.

255 4/30 Dulles: statement before Senate ap-

propriations subcommittee.

256 4/30 Dulles : departure for NATO meeting.
*257 5/1 Farland nominated Ambassador to

Dominican Republic (biographic
details).

258 5/2 Surplus commodity agreement with

Peru.

259 5/2 Dillon: "A New Approach to Mutual

Security."

260 5/2 U.S. position on Nicaraguan-Honduran

conflict.

*261 5/2 Flake nominated Ambassador to Ghana
(biographic details).

1262 5/3 Program for visit of President Diem
(rewrite).
263 5/3 Delegation to 10th World Health As-
sembly (rewrite).

t264 5/4 Joint U.S.-Greece communique : Rich-
ards mission.

*Not printed.

tHeld for a later issue of the Bxtlletin.

United States
Government Printing Office

DIVISION OF PUBLIC DOCUMENTS

Washington 25, D. C.

PENALTY FOrt PRIVATE USE TO AVOID

PAYMENT OF POSTAGE. 5300

(GPO)

OFFICIAL BUSINESS

A Case History of Communist Penetration
GUATEMALA

• •

the
Department

of
State

The "lesson of Guatemala" brought home to the Americas the
realization that international communism, over a long period of time,
has been developing plans to penetrate this hemisphere, to create
conditions leading to civil strife, and to work for the dissolution of
the inter-American system. In Guatemala communism had in fact
seized control of the Government.

A Case History of Communist Penetration — Guatemala, a 73-
page pamplilet, discusses the social and political climate leading to
Commimist infiltration of the country, the beginning organizations
and later the coming into the open of the Communist Party, the
eventual success of the anti-Communist forces of liberation, and the
aftermath of the revolution. Included is the text of the important
Caracas Declaration of Solidarity for the Preservation of the Polit-
ical Integrity of the American States Against International Com-
munist Intervention.

The pamphlet also contains a listing and brief description of
the principal political parties, labor unions, federations, and syndi-
cates, other mass organizations, and individuals playing a part in
the series of events.

Copies of this publication may be purchased from the Superin-
tendent of Documents, U.S. Government Printing Office, Washing-
ton 25, D.C., for 30 cents each.

Publication 6465

30 cents

Order Form

To: Supt. of Documents
Govt. Printing Office

Washington 25, D.C. Please send me copies of A Case History of Communist Penetra-

tion— Guatemala.

Name:

Enclosed find: Street Address:

$ City, Zone, and State:

(cash, check, or
money order).

THE DEPARTMENT OF STATE

TFH fITftTFC

Bec'd
MAY 29 1957
Vol. XXXVI, No. 935 \ g. p. L. / |[ay 27, 1957

FOREIGN POLICY AND FOREIGN AID • Remarks by

President Eisenhower 846

AMBASSADOR RICHARDS' MISSION TO MIDDLE

EAST • Address by Ambassador Richards, Airport State-
ment, and Texts of Joint Communiques 841

TASKS AHEAD FOR THE FREE WORLD • by Assistant

Secretary Bowie 835

THE ELEMENT OF FAITH IN THE CONDUCT OF

FOREIGN AFFAIRS • by Roy R. Rubottom, Jr. . . . 855

WIDENING HORIZONS FOR WOMEN IN LATIN

AMERICA • by C. Allan Stewart 860

VISIT OF PRESIDENT NGO DINH DIEM OF FREE

VIET-NAM • Joint Statement, Address by President Ngo
Dinh Diem Before Joint Session of Congress, and Exchange
of Greetings 851

For index see inside back cover

THE DEPARTrVIENT OF STATE

Vol. XXXVI, No. 935 • Publication 6497
May 27, 1957

For eale by the Superintendent of Documents

U.S. Government Printing Office

Washington 26, DO.

Pbici:

82 Issues, domestic $7.60. foreign $10.25

Single copy, 20 cents

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

Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
Of State Bulletin aa the source will be
sppredatedi

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

Publications of the Department,
United Nations documents, and legis-
lative material in the field of inter-
national reUitions are listed currently.

Tasks Ahead for the Free World

hy Robert R. Bowie

Assistant Secretary for Policy Planning '

This occasion has inspired me to peer ahead in
international affairs. It is impossible to predict
in detail how the world will look in 5 years, much
less in 10. It may not be quite so hopeless to
identify the factors which will influence the out-
come and to appraise their direction. In any case
that will be my endeavor.

In doing so, I will consider two questions :
One is : Wliat basic forces, other than our own
actions, are likely to shape world affairs over the
next 5 or 10 years ? The other is : What goals or
objectives should we set for ourselves in the face
of that kind of world ?

Basic Forces and Trends

First, then, what are the basic factors and trends
that are at work in the world ? Leaving aside our
own actions, it seems to me that one can isolate
at least four forces which are crucial. Let me
explain briefly what these four are and why they
seem central.

Soviet Poicer

The first is the obvious one : Soviet power.

Over the past 4 decades the Soviet system has
shown itself to have great capacity for survival.
It has gone through a remarkable variety of chal-
lenges : the abuse of its rulers, the chaos of inva-
sion, the death of Stalin. It has managed to sur-
vive all these strains and stresses and to solve the
problem of succession, at least so far.

Moreover, the Soviet Union has shown great

1 Address made before the American Society of Inter-
national Law at Washington, D. C, on Apr. 27. At a
business session on Apr. 27 the Society reelected Secretary
Dulles as its honorary president.

capacity for growth and for increase in its power,
both economic and military. Over quite a long
period it has maintained a very rapid rate of
growth — in the last 5 years, for example, some-
thing of the order of 7 percent a year. And in the
industrial sector, where they have concentrated
their effort, the Soviets have achieved a growth
rate of about 10 to 12 percent.

These are high rates of growth compared with
those of other industrial countries, including our
own, where the rates are much nearer 4 percent.
Soviet growth has been bought, of course, at ter-
rible cost in human welfare and freedom. It has
been done at the expense of the consumer and
agriculture. These demands will certainly loom
larger in the future.

Indeed their rate of growth may well slow
down somewhat. Even so, we must still assimie
that the next decade will show steady Soviet
growth, especially in the industrial sector.

Now that prospect has obvious implications,
both for Soviet military capability and for its
ability to assist Communist countries like China
and also, if it wishes, underdeveloped coim-
tries, as it has been doing.

But this is only half the picture. We should
also recognize that there are major pressures for
change within the Soviet Union.

These are largely inherent in the evolution of
Soviet society. To achieve their growth, the
Soviet leaders have had to train and educate their
people. They have now developed an industrial
society — over 50 percent of the population is ur-
ban and industrial. And these factors gradually
increase the demands for greater legality, for
better living conditions, for more freedom, for
wider dispersion of authority, and so on. Simi-

May 27, 1957

835

larly, in the satellites there are the pressures for
national independence which erupted in Hungary
and Poland.

Over time, these forces are surely going to
bring changes within the Soviet Union and in its
relation to the satellites. But they do not
threaten to disrupt the Soviet system or materially
to reduce its strength. And a long time will
probably be required to erode its expansionist
tendencies.

So the first basic factor, it seems to me, is the
fact of growing Soviet power, which will probably
remain hostile over the next decade.

The Revolution in Warfare

The second major fact is also one with which
you are fully familiar, I am sure. This is the
revolution in military teclinology resulting from
superweapons.

Destructive capacity has been multiplied by a
factor of a million as compared with the largest
weapons of the last war. Today a single plane
can deliver explosive force over four times as
great as all the bombs dropped during World
War II.

Even when these facts are familiar, it is hard
for our thinking — the thinking of any of us — to
take in their meaning. But it is clear that they
have utterly altered the significance of war and
deprived large-scale warfare of rational political
purpose. Conversely, they have put a tremen-
dous premium on maintaining peace and stable
conditions which will not give rise to armed
conflict.

What will be the consequences in a world where
two powers have or shortly will have this capacity
for mutual obliteration? It is hard to foresee.
It could give rise to blackmail of nations which
do not have these capabilities. It could give rise
to temptations to local aggression under the sup-
posed shield of atomic stalemate. Or, under some
conditions, it could perliaps give rise to a con-
siderable degree of stability based on mutual
deterrence.

How the situation actually develops will turn
on many otlier factors besides the weapons them-
selves. Not least of these will be the degree of
instability in areas of the world outside tlie bor-
ders of the Soviet Union and the United States.
Wliut hiippcns, for instai\co, in the satellites,
wliat happens in areas like tlie Middle East, what

happens in the Far East, will all have a bearing
on whetlier these weapons make for stability or
make for greater instability, blackmail, local war,
and the like.

Afro-Asian Revolution

The third major factor shaping our world arises
from the radical changes taking place in Asia and
Africa. Here within the last decade some 700
million people have achieved national independ-
ence and created some 19 new nations.

The people in these countries are driven by the
aspiration to improve their economic lot. Their
societies are now marked by the most extreme pov-
erty. Their per capita national income averages
about one-tenth of that in the industrialized
countries of the West. These countries are de-
termined to improve their economic conditions.
They believe it is possible, and they are demand-
ing that it be done.

The obstacles to their improvement are fantas-
tic. There is the sheer fact of poverty itself.
Tliere is the illiteracy, which is typically 80 or 90
percent. There is the serious scarcity of skills.
There is the great shortage of capital. There is
the lack of those habits of mind and custom, of
self-discipline and managerial experience essen-
tial for economic progress.

Thus their task in trying to achieve economic
development is staggering. Yet their success or
failure is going to determine very largely the
political course in these countries. If moderate
leaders, as in India, are not able to produce re-
sults which offer their people liope, they are al-
most surely going to turn to other more radical
solutions, and the Connnunists are almost certain
to be able to exploit this frustration.

A second characteristic of these peoples derives
from their colonial exijerience. Their national-
ism is intense and often takes an anti-Western
bias; their thinking is colored by the memories
of past domination, by a sense of inequality, which
the West means for many of them. The bias
against the West is a serious obstacle to the kind
of work with these people that is in our mutual
intei"est. The Communists exploit these feelings
with great skill and pose as the supporters of the
independence of these countries as against fancied
Western efforts at domination.

In addition, this nationalism produces conflicts
or quarrels with neiglibors, as in the Kaslimir dis-
pute, the dispute between Afgluinistan and Pak-

836

Deparfmeni of State Bulletin

istan, the Israeli issue, and so on. These local dis-
putes are a constant threat of outbreak of violence
whicli could embroil other parts of the world by
taking sides. Thus these areas are inhei'ently a
serious source of mstability, both in the political
sense and also as possible sources of military
conflict.

Relative Decline of Europe and Japan

The fourth factor which seems to me central is
the relative decline of former centers of power in
Europe and Japan since World War II.

In neither case is there really an economic de-
cline, because both areas are enjoying «. scale of
economic activity which they never before i-eached.
Nor is there essentially a loss of political stability,
because in general the moderate groups are in con-
trol in these areas. The shift in their relative po-
sition reflects the growth of the U.S. and the
U.S.S.E., the development of atomic weapons, the
loss of colonies, and the like. As a result, these
formerly strong areas are no longer able to carry
on the role in the world which they were once
accustomed to. The process of adjusting to this
change is not an easy one. It tends to create
frictions and to strain the ties among us.

These then are four basic factors that seem
likely to shape the world we will face for some
years : a strong and hostile Soviet Union ; a grow-
ing ai-senal of weapons of unprecedented destruc-
tive power; the di"ive for political and economic
progress in the less developed areas; and relative
weakness in the former power centers of Western
Europe and Japan. The analysis so far leaves
out of account one factor which may be decisive :
our own actions. Let me now turn to them.

Free World Tasks

In the light of these forces or trends, what
should be the main goals or tasks for the free
world over the decade ahead ? I would suggest
five:

Safeguarding Peace

The first task must be to stabilize peace so as
to prevent both deliberate and unintended war.
This has two aspects.

To deter deliberate aggression our best hope
at present is to have the means to punish it effec-
tivel}\ The aggressor must be convinced that
his crime will not pay. For this purpose it is not
enough to be able to retaliate with all-out power.

The free world must also be able to apply limited
force in more selective and flexible ways. Other-
wise we should run the risk of not being able to
respond to specific limited acts of aggression.

The other danger is that the world could
blunder into a major war without meaning to. In
areas like the Middle East, parts of the Far East,
and the satellites, which are unstable or inflamed,
great power interests are involved or could easily
become involved. The outbreak of conflict in
these areas could lead by steps and countersteps
to the kind of all-out war which would not serve
the interests of anybody.

We need to use all the skills and machinery we
have to keep such situations from breaking out
into violence. For this purpose the U.N. can be
very useful.

It would be a mistake to overestimate its ca-
pabilities, but it would also be a mistake not to
use it fully in the ways in which it can be effective.
And it seems to me essential to foster in all the
ways we can the concept of the rule of law and the
outlawing of resort to force in the settlement of
disputes. Much can also be done by other or-
ganizations such as Nato and the Organization of
American States. And not least is the need for
old-fashioned diplomacy in resolving existing con-
flicts and disputes peacefully.

Control of Armaments

Let me turn now to the second task which is
closely related to the first. We must try to bring
armaments, especially nuclear armaments, under
some degree of control.

In saying this I am not suggesting that arma-
ments can be eliminated entirely in this period.
The practical and political, obstacles make any
system of total disarmament out of the question.
But the issue is a false one if it is posed as a choice
between doing nothing and attempting to disarm
totally. We need a much more flexible approach
to the problem. Small steps may have gi'eat value
in reducing the likelihood of nuclear wai'. For
example, any degree of inspection might ma-
terially increase the deterrent by making it more
difficult to launch a surprise attack. In the ab-
sence of ability to achieve surprise any temptation
to initiate all-out nuclear war would be substan-
tially reduced. Similarly, it would be useful to
put limits on the spread of nuclear weapons
throughout the world. In many hands they
could hardly fail to create new tensions and

Moy 27, ?957

837

dangers. Finally, we should try to divert future
output of nuclear material into peaceful uses and
at least start to transfer some of the existing
stockpiles to such purposes.

Such modest measures would fall far short of
disarming entirely. But they would serve to limit
and control armaments and perhaps gradually to
reduce the burden of safeguarding the peace. And
that could lay the basis for further steps.

Economic Development

The third task for the free world is to assist eco-
nomic gi-owth in the less developed areas. We
have a deep interest in the continued independence
of these countries imder moderate governments.
If they cannot achieve social and economic prog-
ress under tliese auspices, the prospects look grim
indeed. Their failure could radically change the
present imeasy political balance in the world.

As I have said, there is no easy road to growth in
the less developed countries. They start with
severe handicaps in terms of skills, experience,
illiteracy, and capital. Economic progress will
require a social revolution over a very short period.
The disruption of old traditions and institutions
will create unstable conditions and offer great
opportunities for Communist exploitation.

If these people are to achieve economic growth,
it will have to be done mainly by their own efforts.
No outsider can possibly organize and bring about
the basic changes which will be required. But
even if they make the best use of their own re-
sources, the margin between success and failure
will be a narrow one. Capital and training from
outside can do much to widen that margin. And
such help will be required for some years to come.

Our uiterests and our ideals dictate that we
should devote substantial resources to training and
technical assistance and to providing economic
help for development purposes. In extending it
our methods should be designed to foster self-
help and efficient use of resources. The Secretary
of State has recently submitted to the Congress
certain proposals on our mutual security program.
Those relating to economic development are de-
signed to clarify our purposes and to create ma-
chinery better adapted to the task. If adopted,
these proposals should improve the program and
enhance its value.^

Western Europe and Japan
Our fourth objective must be to assist Western

Europe and Japan to play a role in the world in \

keeping with their potentialities.

Under modem conditions. Western Europe is
weakened by its fragmentation. In recent years
the European states have attacked this weakness
in various ways. In the Coimcil of Europe, the
Oeec, the European Payments Union, they have
worked together on common problems. Six of
these nations have gone even further. In the Coal
and Steel Community and now in Euratom and
the Common Market, they are seeking to create
an integrated European commuiiity with common
institutiqps. We must do all we can to foster this
integration and the drawing together of the Euro-
pean coimtries in their effort to create a more
effective imit in the free world.

In the Far East prospects for peaceful prog-
ress depend greatly upon Japan. The prosperity
of Japan rests heavily on access to raw materi-
als and to markets and trade outlets overseas. A
prosperous and free Japan can contribute much
to tlie vitality of the free world. But if these
benefits are to be achieved, ways must be found
to allow Japan to sell its products within the
free world.

Communist Evolution

As a final objective we must do what we can
to foster the evolution of the Commimist states
toward a more liberal pattern. Let us not over-
estimate what we can do for this purpose. Our
first aim must be to try to create a set of condi-
tions to which the Soviet Union will have to ad-
just and adapt its own conduct. Tiiat, of course, j
is a fundamental purpose of the actions I have al-
ready outlined. They are designed to forestall
Communist resort to military force and the
spread of communism by nonmilitary means. In
this way time will have a chance to work its
changes on Soviet society.

Meanwhile, there are some other things we
can do which may have a modest effect in speed-
ing that evolution. For instance, exclianges of
information and of people open up the Com-
munist world to ideas and influences from abroad
and tend to strengthen the forces for change
witliin.

Again, we can at all times nuike it clear that

' For a statement made by Secretary Dulles on Apr. 8
before the Senate Siteoial Committee To Study the
Foreign Aid Program, see BuLLErriN of Apr. 29, 1957,
p. 675.

838

Department of State Bulletin

the free world does not threaten Soviet national
interests if these are defined in ways which do
not call for domination of other states. In other
words, the Soviet Union should be made aware
that it could have a secure national life in a world
of independent states if it is prepared to forgo
expansionist goals.

With raspect to the satellites our aim slionld
not be violent revolution but the steady growth
of gi-eater independence of the Soviet Union.
And again we can assure the Soviets that, if they
accommodate to the pressures for freedom in the
satellites, the free world will not seek to create
hostile neighbors along its borders.

These then are five major tasks to which I
think the free world must devote itself in the
coming years. In a brief speech it is not feasible
to fill in details. I can only hope that enough
has been said to indicate why each of them seems
necessary in coping with the conditions that lie
ahead.

Conclusion

In concluding, I would like to stress two final
points about these tasks.

The first is this. Each of them will require
cooperative action among tlie free nations. None
of them can be achieved in isolation by any single
nation- — even our own. Our military power, our
economic power, our diplomacy, and our ideas
can do much to influence the direction in which
the world develops. But, to be effective, our ef-
forts will have to be combined with those of
other free nations. Each will have to contribute
its due share and play its proper role.

My final point is that the tasks I have outlined
pose special problems for democratic nations.
These goals are not to be realized within a year
or even within a decade. They call for steady,
patient effort over an extended period of time.
They will demand heavy burdens and sacrifice.
The challenge is not a dramatic one. And the
necessary actions will not produce clear results
at a specific time. There will be a constant temp-
tation to let down and to cut back. Yet these
tasks are essential for the survival of freedom.

It is an article of faitli with all of us that in
the long run the triumph of freedom is inevitable,
that the future is on our side. In a very real
sense this is true. Hungary and Poland are the
most recent testunony that the values and institu-

tions of freedom respond to the deepest yearnings
of mankind. But in this situation we should also
recall a wise saying of Mr. Justice Holmes: "The
inevitable comes to pass by human effort." We
can be sure that freedom will prevail if free men
put forth that necessary degree of effort.

NATO IVIitiisterial Council
Meets at Bonn

Folloiuing is a statement made hy Secretary
Dulles upon his return to Washington on May 7
following a 2-day meeting of the Ministerial
Council of the North Atlantic Treaty Organiza-
tion at Bonn, Germany, on May 2 and 3, together
with the text of the final communique issued hy
the Council at Bonn on May 3.

STATEMENT BY SECRETARY DULLES

Press release 276 dated May 7

I return from a meeting of the 15 ministers
of the North Atlantic Treaty countries.^ It was
in many respects the best Nato meeting that I
have ever attended. There was an informality
and a scope of discussion which stemmed from a
fresh sense of common purpose.

We agi-eed that Nato must be in a position to
use all available means to meet any attack which
might be launched against it. We will not be
deflected by Soviet objections. We did not admit
that a nation which has itself been guilty of ag-
gressive expansion, and which only recently at-
tacked Hungary, could properly dictate the de-
fensive policies of the free. Our defensive poli-
cies do not, of course, preclude limitations of arma-
ment which are mutual and balanced and where
promises will be verified by adequate inspection
and control.

Following the meeting at Bonn of the Nato
Council I met at Paris with the heads of 13 United
States diplomatic missions in Europe. Such re-
gional meetings greatly assist the implementing
of our foreign policies.

My visits to Bonn and Paris also enabled me

'For a departure statement by Secretary Dulles and
an announcement of the U.S. delegation, see Bulu:tin
of May 20, 1957, p. 804.

May 27, 1957

839

to have useful talks with Chancellor Adenauer
of Germany and with Premier Mollet of France.

TEXT OF COMMUNIQUE

Press release 275 dated May 7

The North Atlantic Council, presided over by Mr.
Gaetano Martino, Foreign Minister of Italy, held its
regular ministerial meeting in Bonn on May 2 and 3,
1957. The Secretary General, Lord Ismay, acted as
Chairman of the Council's discussions.

The Atlantic Alliance has always been and remains
purely defensive. It was created to protect its member
countries from any aggression. It has succeeded. But the
danger of aggression clearly continues, and the countries
of the Atlantic Alliance must therefore remain united to
provide for their defense.

The Council noted that since its last meeting the Soviet
leaders have launched a campaign which, while throwing
the cloak of oblivion over Soviet repression in Hungary,
is designed to induce public opinion in various member
countries to oppose the modernization of defense forces,
and to weaken the principle of collective security in NATO.

The Council agreed that one of the objects of this
campaign was to ensure for Soviet forces a monopoly of
nuclear weapons on the European Continent. Such a sit-
uation clearly could not be accepted. It was with satis-
faction that the Council noted the firm replies given to
these Soviet maneuvers.

The Atlantic Alliance must be in a position to use all
available means to meet any attack which might be
launched against it. It is the availability of the most
modern weapons of defense which will discourage attempts
to launch any such attack on the Alliance. Pending an
acceptable agreement on disarmament, no power can
claim the right to deny to the Alliance the possession
of the modern arms needed for its defense. If, however,
the fears professed by the Soviet Union are sincere, they
could be readily dissipated. All that is needed is for the
Soviet Union to accept a general disarmament agreement
embodying effective measures of control and Inspection
within the framework of the proposals made on numerous
occasions by the Western Powers, which remain an essen-
tial basis of their policy.

During their discussions on the problem of security,
the question was raised of the balance as between the
latest weapons and conventional arms. The Council is
awaiting the results of the studies now in hand by the
NATO military authorities to enable member countries

to decide together on the steps necessary for the develop-
ment and balance of the different types of forces needed.
The Council remains convinced that these decisions taken
in common should take into account the need for NATO to
retain an effective deterrent against aggression, including
a powerful shield of land, sea and air forces, to protect
the territory of member states.

Recent events in Hungary have confirmed that free-
dom counts for nothing in Soviet eyes, and that the U.S.S.E.
is prepared to use force to crush the legitimate aspirations
of nations. The Council agreed that the continued brutal
repression of the struggle for freedom of the heroic Hun-
garian people remains, and continues to make difficult an
improvement in East- West relations.

The Council discussed the effect of political develop-
ments in recent months on the question of German reunifi-
cation. They decided to continue their efforts with every
means at their disposal to induce the Soviet Government
to carry out its agreement that Germany should be reuni-
fied by moans of free elections. The Ministers view the
prolonged division of Germany and the anomalous situa-
tion of Berlin as a continuing threat to world peace. They
accordingly reaffirmed their determination by peaceful
means to continue and intensify the common policy for the
restoration of Germany as a free and united state within
the framework of a system of European security. They
directed particular attention to the inhumanity of the
continued division of the German people.

The Council reviewed recent developments in the Mid-
dle East. They concluded that while the dangers to
peace in the region remain great, certain new elements
give promise of limiting the opportunities for communist
expansion and subversion. The Council emphasized the
importance of current initiatives to improve the situation
and to reinforce the efforts already made to ensure the
security and integrity of countries in the Middle East.

The Ministers considered the state of the Alliance in
the light of political developments, both within and with-
out the NATO area, which have taken place since they
last met five months ago. In this connection they re-
viewed the progress achieved in political consultation
under the new procedures inaugurated as a result of the
recommendations of the Committee of Three approved last
December." They concluded that useful and concrete re-
sults had been achieved, and that the Alliance was acquir-
ing both greater maturity and solidarity.

The Council noted the report submitted by Lord Ismay,
and conveyed to him their thanks and gratitude for the
supreme services which he has rendered to the cause of
the Alliance in the past five years.

'■Ibid., Jan. 7, 1957, p. IS.

840

Deparlment of State Bulletin

J

Ambassador Richards' IVlission to the Middle East

Folloioing are a radio and television address
made by Ambassador James P. Richards on May
9 at the conclusion of his mission to the Middle
East and a statement he made at the airport upon
his return to Washington on May 8, together with
the texts of joint comynuniques issued after his
visits to Greece, Libya, Tunisia, and Morocco}

ADDRESS BY AMBASSADOR RICHARDS

Presa release 281 dated May 9

Yesterday afternoon I returned to Washington
from a trip of almost 30,000 miles. In the past
2 months my small staff and I have traveled by
plane, train, and a variety of vehicles throughout
the general area of the Middle East — from Paki-
stan on the east to Morocco on the west — from
Greece on the north to Ethiopia on the south.
President Eisenhower wanted me to explain the
spirit and purposes of the American Doctrine to
any government in the area which wanted such
an explanation. This morning I had the pleasure
of telling the President about my trip, and now
I want to tell you about it.

What is the American Doctrine ?

On January 5 the President stated to the Con-
gress that the threat of international commmiism
to the general area of the Middle East was such
that the American people were obliged to under-
take special new responsibilities there.^ On March
9th the Congress adopted a joint resolution en-
dorsing this doctrine.^

' For an announcement of an interim report on Ambas-
sador Richards' mission, together with texts of communi-
ques from Lebanon, Libya, Turkey, Iran, Pakistan,
Afghanistan, Iraq, and Saudi Arabia and press statements
on the Baghdad Pact, see Bulletin of May 6, 1957,
p. 724. For a statement from Yemen and communiques
from Ethiopia and the Sudan, see ibid.. May 13, 1957,
p. 763. Mr. Richards also visited Israel on May 2 and 3.

= /fii(i., Jan. 21, 1957, p. &?.

» IMd., Mar. 25, 1957, p. 480.

The most important provisions of the doctrine
are: that the President may use United States
armed forces to assist any nation or group of na-
tions in the general area of the Middle East re-
questing assistance against armed aggression from
any country controlled by international com-
munism ; and that the United States may furnish
economic and military assistance at the request
of nations in the area to help them build up their
own strength against international communism.

The doctrine offers the cooperation of the United
States in resisting overt Communist attack and
assistance in building up the ability of nations of
the area to protect their territorial integrity and
national independence. It is not a purpose of the
doctrine to seek alliances, bases, or any special
sphere of influence within the region. Moreover,
respecting as it does its own sovereignty, the
United States could hold no thought of impinging
on the sovereignty of others. The American Doc-
trine stands as a symbol of the stake the Ameri-
can and Middle Eastern peoples have in each
other.

The President assigned me the task of visiting
the Middle East coimtries to explain this Ameri-
can Doctrine. He conferred upon me the authority
to agree in principle on the spot to United States
economic and military assistance to implement it.
So I visited all countries in the area, 15 of them,
which showed a genuine desire to discuss the
American Doctrine. I omitted three countries.
In one case no firm invitation was received; in
another the attitude of the government showed
clearly that there was no real desire for frank and
sincere discussions; in the third, current develop-
ments made it appear preferable to extend United
States economic assistance through other means.

The American Doctrine, of course, is only one
aspect of our policy toward the area. It is not
intended to solve pressing intra-area disagree-
ments. This does not mean that we are neglecting
them. On the contrary, we are working inten-

May 27, J 957

841

sively on these problems through other means and
believe the containment of international commu-
nism will assist in their solution. Therefore,
while I listened to the views of the governments
visited on such intra-area problems and reported
them to the President, my mission did not concern
itself specifically with their solution.

How the Mission Worked

Now, let me tell you how we worked on this
trip. "We were forced to meet a very tight sched-
ule and could spend only a little over 2 full days
in an individual country. It was our practice to
confer immediately after arrival with the Ameri-
can Ambassador and his country team, including
representatives from the Departments of State
and Defense, the International Cooperation Ad-
ministration, and the United States Information
Service. I would like to pay a tribute to these and
other American officials, who are working devot-
edly for the interest of their country often in ex-
tremely difficult circumstances.

This family discussion was quickly followed by
intensive conferences with the top officials of the
host government. At this meeting, I gave a full
explanation of the President's program, answered
questions, and tried to remove any doubts. I was
always careful to explain the burden of defensive
armaments the United States is already carrying
for the purpose of maintaining free-world secu-
rity. I pointed out that economic and military
assistance under the doctrine must come from
funds already appropriated by the Congress. The
limited amounts available could by no means meet
all the needs of the area countries but had to be
channeled to the most urgent requirements. Nat-
urally there was some disappointment at the
amounts we could authorize for an individual
country, but I believe at the same time there was
increased recognition and appreciation of the
efforts the American people are making.

Afterward members of my staff would study
with appropriate local officials various problems
upon which the United States could render help.
These technical meetings were followed by a
further plenary conference at which our business
was concluded. We met a variety of local circum-
stances. For example, in Turkey our conference
-with the Prime Minister resembled that of a board
meeting of a largo United States corporation. In

Saudi Arabia we were received in audience by His
Majesty in his new palace in the rapidly growing
city of Riyadh. Afterward we were able to meet
young Prince Mashhur, who visited this country
with his father. In Iraq, the dynamic Prime Min- j
ister took personal charge of the negotiations.

Perhaps the dominant impression I received
from the trip was that of peoples with vast
aspirations, determined to make their dreams come
true. In the newly independent countries they
have just tasted the thrill of governing them-
selves, and all are awake to the possibility of im-
proving their lots. Now the Communists claim
they have the quick easy answers. They make big
promises of economic aid. They provide arms to
promote trouble. They do not hesitate to take
sides in intra-area problems, because perpetuation
of these problems furthers their aims. They pose
as super nationalists and at times succeed in de-
ceiving well-intentioned persons. Khrushchev
and Bulganin visited some parts of the area. They
spoke deceptively of peace and promised the moon.

Confidence in U. S. Intentions

One of my tasks was to convince the people of
the Middle East of our own sincerity. I sought
to determine whether the leaders of the countries
we visited had confidence that we were really try-
ing to help them and were not motivated by selfish
purposes. You would have been very proud, as
I was, at the responses I received. There is an
openness of heart toward the United States.
President Eisenhower is held in the highest regard
as a man of peace sincerely interested in aiding
others. The position the United States Govern-
ment took last fall at the time of the attack on
Egypt has been a most convincing demonstration
that the American people stand against any ag-
gression and for the principles of the United Na-
tions Charter. This respect for United States
leadership and confidence in our intentions is per-
haps the greatest asset we have.

I found real recognition of the significance of
the United States decision to pledge United States
forces against international communism. The
military men in particular appreciated this assur-
ance, and you could tell that it gave them a new 1
feeling of security and determination to do better .
themselves.

As I said earlier, under the authority given by

842

Department of State Bulletin

the President I was able to make decisions in prin-
ciple on the spot to provide military and economic
assistance. We gave some military assistance —
guns, tanks, and things like that — where there
appeared to be a special need. In several coun-
tries of the Middle East we have had military
assistance programs in progress for a number of
years. Tliese are administered through United
States military assistance advisory groups as a
part of our regular mutual security activities. In
general I found no need for an immediate increase
in the level of this aid in countries already re-
ceiving it. I was particularly interested in the
ability of local armed forces to maintain internal
security and to resist potential external aggression
by international communism. Some soft spots
appeared, and my mission authorized additional
militaiy equipment to fill in. We did not, how-
ever, attempt to consider the entire military
aspirations of each country. The total of these
would have been too vast to be satisfied from the
limited funds available. We concentrated in-
stead on those things which would give an imme-
diate increase in area ability to resist either overt
or covert aggi'ession by international communism.

We also gave some economic help — partly grant
and partly loan. We were particularly interested
in projects which would encourage regional coop-
eration enabling the countries to help each other.
For example, we agreed to aid the Baghdad Pact
organization in the fields of telecommunications
and highways. We gave some help in the field of
transportation, to promote improved regional
trade facilities and to link outlying areas with
their capital city so as to bring people into closer
touch with their government. In some countries,
only foreign radio programs — and thus foreign
propaganda — were reaching into rural and urban
homes. So we provided means of developing
their own broadcasting facilities.

This aid — economic and military — was not of
gi-eat magnitude in terms of the total requirements
but, as one Prime Minister said, does demonstrate
our desire to cooperate with area countries in
building up their own strength.

I came to realize more than ever the mutuality
of our interests with those of likeminded people
of the Middle East. The problem of building a
better world is a two-way street, and we must
depend on good will of others as they must de-
pend upon us.

I am glad to be able to report to j'ou that all
of the 15 countries we visited asserted determina-
tion to maintain their national independence
against any threat. Most recognize the danger
of international communism, although some are
more conscious of this menace than others. Most
welcomed the American Doctrine publicly. None
rejected it. We were careful not to press any
nation to take a public stand against its own
judgment.

Only the future will tell what lasting contribu-
tion the mission I headed has made in the world's
conflict of ideologies. But it was evident to me
that the peoples and governments of the Middle
East area have trust in the intentions of the
United States, are determined to protect them-
selves from international communism, and have
generally welcomed the American Doctrine. In
enunciating this doctrine we have assumed a heavy
moral responsibility. We have charted a bold
course, one that in the world of today involves
continuing hazards. But it is a course which our
responsibilities will not permit us to abandon. It
is my hope and my belief that the Middle East
nations will sail this course with us.

ARRIVAL STATEMENT

Press release 278 dated May 8

I am glad to be back home after almost 2
months of virtually continuous travel covering
approximately 25,000 miles and 15 countries. We
visited 15 countries of the nations in the area to
which the American Doctrine relates. Due to
the President's request for me to return for con-
sultations I was unable to complete arrangements
for visits to Egypt, Syria, and Jordan. We shall
continue our contacts through normal diplomatic
channels with those states in the area which
evince a firm desire to consult regarding our
Middle East proposal.

The purpose of our mission was simple : to ex-
plain the purposes of the Middle East resolution
and to consult and agree on ways in which the
United States and the individual states of the
area might cooperate under the terms of the reso-
lution. None of the 15 nations which we visited
rejected proposals of American aid within the
framework of the doctrine. Some of the states
desire to consult further on the specific terms of

May 27, J 957

843

our cooperation. In a great majority of the
countries we were able to establisli an identity of
interests and to work out specific agreements for
mutual cooperation.

We have learned much in the past 2 months of
the needs, the desires, and the hopes of these
states, and I am deeply impressed by the possibil-
ities of fruitful collaboration in establishing con-
ditions leading toward stability, security, and
economic progress in the area — all necessary pre-
requisites to our common goal, peace.

My first duty is to report to the President and
to the Secretary of State on my findings and the
results of my trip and through them to the Con-
gress which authorized the proposal. I might
add that I wouldn't say that this was an easy
trip but it was made easier for us by the deep
respect for the Pi-esident of the United States and
the proposals he has made for the security of the
Middle East througli this doctrine.

I want to also say that I was even surprised at
the confidence of the governments and the people
of that area as to the high moral purposes of the
United States in what they are trying to do. They
give both the President and the Secretary of
State much credit for what we might call tenden-
cies toward permanent peace in that area.

TEXTS OF COMMUNIQUES

Greece Joint Communique

Athens, Greece

May 2, 1957

Press release 264 dated May 4

During his visit to Athens April 28 to May 2,
1957, Ambassador James P. Richards, Special
Representative of the President of the United
States, discussed with Prime Minister Karaman-
lis and other members of the Greek Govenmient
President Eisenhower's proposals for the Middle
East as approved by the United States Congress.

During these discussions the following con-
clusions were readied :

1. Recognizing that international relations
must be governed by a mutual respect for the in-
dependence and sovereign equality of countries,
both parties reiterate their faith in the principles
and aims of the Charter of the United Nations.

2. In order to defend the independence and
freedom of all peoples, both parties recognize the
necessity of facing in common the perils, from
whatever source, which threaten these blessings.

They agree that International Communism is
a very great danger for freedom and independ-
ence and that to face it continuous vigilance as
well as cooperation and solidarity of all free
peoples is necessary.

3. To ensure the independence of economically
weaker and technically less developed countries
it is necessary to provide them with means of
gradually developing their economy, of increas-
ing their national income and of raising their
standard of living.

4. More particularly, both parties recognize
that this cooperation and solidarity sliould be
manifested in favor of countries of the Middle
East and to those which facing similar economic
problems are, geographically, historically and
economically in immediate, and continuous rela-
tions with them. For this reason, they consider
that Greece also is included in countries covered
by the Eisenhower Proposal.

5. Greece, with long-standing ties of undis-
turbed friendship for the Arab world, is espe-
cially desirous to see the Arab countries preserve
their full independence and promote tlieir eco-
nomic prosperity.

6. Greece lias 10 years' experience of American
aid and cooperation which, without any limita-
tion of her national mdependence or her external
policy, protected her freedom and liealed her
wounds from war and Communist aggression and,
therefore, believes that under the same conditions
of preservation of national independence of the
above-mentioned countries, similar results could
be achieved.

7. For the achievement of all the above aims,
both countries will make use of all appropriate
peaceful means, and especially of those offered by
the United Nations, in order to solve matters
arising in the area of the Middle East.

8. It is understood that various programs of
aid already agreed upon or in progress in the
area covered by President Eisenliower's proposals
are neither affected nor suspended. Any aid sup-
plied in application of these proposals will be
furnished over and above all aid otherwise made
available.

n. Finally it was agreed that both Governments
should continue through apjiropriate channels

844

Department of Sfafe Bulletin

the study of ways and means by whicli the above
aims can be achieved for the peace and prosperity
of so many millions of people.

Libya Joint Communique

Press release 267 dated May 6

Tripoli, Libya

May 4, 1957

At the request of the Government of Libya,
Ambassador James P. Richards, Special Assist-
ant to the President, stopped at Tripoli on May 4,
1957 en route to the United States and held fur-
ther discussions on certain aspects of the Middle
East proposals of the President of the United
States. During his previous visit to Libya from
March 17-March 20, it was announced that Libya
and the United States would work together for
the successful application of the proposals, in
recognition of the fact that the aggressive inten-
tions of international communism offer the great-
est present threat to national mdependence and
the peace and security of the world community.

In accordance with the statement made on
March 20 * that the United States would provide
additional economic assistance to Libya, the Gov-
ernment of Libya and Ambassador Richards have
now completed studies of economic activities which
would contribute to Libya's needs. The Ambas-
sador has agreed in principle that the United
States Government will immediately undertake
the necessary procedural and legal steps to initiate
projects in the following fields, among others :

1. A general survey of Libyan development
needs.

2. The development of broadcasting.

3. Assistance in education, including scholar-
ships and instructional material.

4. Further aid toward electrical power de-
velopment.

5. Improvement of telecommunications.

6. Development of domestic water supplies.

Tunisia Joint Communique

Tunis, Tunisia

May 6, 1957

Press release 272 dated May 7

At the invitation of the Government of Timisia
Ambassador James P. Richards, Special Assistant

to President Eisenhower, arrived in Tunis Satur-
day, May 4. He had cordial talks with Prime
Minister Bourguiba and members of his Cabinet
on May 4 and 5.

The Prime Minister reiterated his previous en-
dorsement of President Eisenhower's proposals
for the Middle East and was pleased to have the
opportunity for discussions with Ambassador
Richards regarding these proposals and the need
to meet the menace of international communism.

Morocco Joint Communique

Rabat, Morocco

May 8, 1957

Fiess release 280 dated May 9

Ambassador Richards, Special Assistant to
President Eisenhower, paid a visit to Morocco on
May 6-7. He was received in audience by His
Majesty the Sultan for almost an hour and had
several meetings at the Foreign Ministry with the
Prime Minister, the Minister of Foreign Affairs
and other members of the Government.

Ambassador Richards, who was welcomed with
great regard, presented a detailed exposition of
the plan put forward by President Eisenhower
for the Middle East as well as the objectives of
the United States Govenunent m that area.

This exposition was given the greatest atten-
tion in a spirit of mutual understanding, in view
of the interest of Morocco in the strengthening
of peace in the Middle East. The position of
Morocco remains therefore as it was at the time
of the visit of Vice President Nixon.

Suez Canal Users Reserve Rights
Under Convention of 1888

Following is the text of a commiunique issued at
London on May 9 following a meeting of the Cov/n-
cU of the Suez Canal Users Association.^

The Council of the Suez Canal Users Associa-
tion met this afternoon to continue its discussions.
It was the general consensus of the member coun-
tries that the Egyptian Declaration ^ is insufficient
and falls short of the six requirements for a settle-
ment of the Suez Canal question, which were em-

' IhUL, May 6, 1957, p. 726.
May 27, 1957

' For background, see Bulletin of Oct. 1, 1956, p. 503.
' For text, see ibid.. May 13, 1957, p. 776.

845

bodied in the Resolution of the Security Council
of October 13, 1956.^ Insofar as use of the Canal
is resumed by the shipping of member states, this
does not imply their acceptance of the Egyptian
Declaration as a settlement of the Suez Canal ques-
tion. Accordingly, member states reserve existing
legal rights under the Convention of 1888 and
otherwise with respect to the operation of the Suez
Canal.

The delegate of France expressed a reservation
to the effect that in the opinion of his government
it was not possible in present circumstances to rec-
ommend the use of the Canal to member states.

The delegate of Spain expressed a reservation to
the effect that it is solely within the competence of
the United Nations to decide whether or not the
Egyptian Declaration is consistent with the Reso-
lution of the Security Council of October 13, 1956.

Air Agreement With Syria Amended

Press release 266 dated May 6

The Department of State announced on May 6
the conclusion of an exchange of notes on May 5,
1957, between the American Embassy at Damas-
cus and the Ministry of Foreign Affairs of the
Government of Syria, amending the annex of the
United States-Syria air transport agreement,
which was signed on April 28, 1947, to enable
designated U.S. and Syrian airlines to provide
nonstop service on the routes specified for each
country.

The amendment, which becomes effective im-
mediately, provides for a new section 3 of the an-
nex to read as follows:

Section 3 — Intermediate points on any of the specified
routes may at the option of the designated airlines be
omitted on any or all flights.

Pan American World Airways is the carrier
designated by the U.S. Government to operate to
and tlirough Syria on the following route specified
in the 1947 agreement : Tlie United States, through
Europe and Turkey to Syria and beyond to India ;
via intermediate points in both directions. The
agreement provides that a route to the United
States to be operated by Syrian airlines may be
determined at a later date.

Foreign Policy and Foreign Aid

Remarks by President Eisenhower ^ I

When you ask for comments on foreign policy i
and the operation of foreign policy, you in effect
ask for a sort of marathon performance that can
go on here for much longer than the time you
have to spare, I am sure.

First of all, I would earnestly want to com-
mend you for your interest in this problem. The
foreign problem overshadows everything else that
we have as an argument at home or what we
would call one of our domestic problems. It
either causes that problem or certainly colors it.
Our defensive arrangements, in all of their dif-
ferent aspects, account for about 63 percent of
our budget. So all of the economies that we
would like to accomplish in our tax take and in
our expenditures finally come back — if we are
going to make them in very large amount — to
affect this foreign policy problem that we have.

Now there are a few things that I think we
should understand. A foreign policy is not dif-
ficult to state. We are for peace, first, last, and
always, for very simple reasons. We know that
it is only in a peaceful atmosphere — a peace with
justice, one in which we can be confident — that
America can prosper as we have known prosper-
ity in the past. It is the only way that our people
can, in the long run, be freed of great burdens and
devote their substance to the constructive pur-
poses that we have — in schools and hospitals and
helping the development of our people in every
way.

We seek that peace from a position of strength.
As long as there is abroad in the world a preda-
tory force, seeking to destroy our f oi-m of govern-
ment, we are going to remain strong. It is only
prudence, and as a matter of fact it is the only
way to be successful. Because when you are
talking to people that respect only force, you
must have the ability to use force. But we recog-
nize those constructive arrangements as negative
and sterile themselves. And again, we want to
get rid of that burden.

• lUd., Oct. 22, 1956, p. 616.
846

' Made before the National Council of the League of
Women Voters of the United States in the rose garden
at the White House on May 1 (White House press
release).

Department of Slate Bulletin

Now, as we pursue peace, we have organized —
there was organized some years ago — the United
Nations. The United Nations is not always effec-
tive, of course, in any particular instance, be-
cause of circumstances. But it does represent, as
vee see it, the greatest hope that the world has for
establishing finally a forum in which differing
viewpoints will be brought and argued and where
arrangements may be made that will be necessary,
if we finally come to the point that all of us
realize we must live peacefully. It can help,
therefore, in bringing about peace and much more
so in maintaining peace with justice, after we
have some kind of workable arrangement that
will allow us to reduce armaments.

"When a specific problem comes up — for exam-
ple, the Suez argument of last fall — no one would
claim that the United Nations is necessarily the
most effective instrument for deciding the particu-
lar dispute. But if any nation such as ours, power-
ful as it is, ignores the United Nations in trying to
solve these disputes, what is going to happen to
this greatest hope of all mankind for peace ?

You must respect it. You must work through
it so far as it is possible. But the charter itself
of the United Nations does not preclude the at-
tempt to establisli, prevent, or restore peace
througli individual methods. As a matter of fact,
the charter says in case of dispute the first efforts
should be made between the contending countries
tliemselves. You can do it also by regional and
other organized efforts that do not involve the
United Nations — but if the United Nations is ig-
nored, I thmk we do it at our future peril.

The Spirit of Nationalism

Anotlier point that I think is important for all
of us to remember : The strongest force abroad in
the world today, particularly among those peoples
that we call the more underdeveloped peoples, is
tlie spirit of nationalism. This spirit is stronger
than communism in these areas, and fortunately
it is stronger than the spirit of any communism
in all of them — in some of them, I mean. What
I mean by that is this: This desire to be free,
to say I am a citizen of this country or that coun-
try, to say we are independent — this is a spirit
that has been growing with tremendous leaps and
bomids ever since the famous pronouncement of
President Wilson of the right of self-determina-

tion of small peoi^les. Today it is a terrific force
m the world.

Now this means this : They are going to remain
independent, or they believe they are going to
remain indei^endent, by whatever means they have
to use. One of the things necessary to remain in-
dependent politically is to have an economic base
on which that independence can be supported.
Their determination to remain independent is so
strong that they will get that economic help, that
economic investment money, from somebody.
And if we don't supply it or do our share of sup-
plying it from the free world basis, the free world
standpoint, others will.

We know that they will not long remain inde-
pendent if they go somewhere else. But they
don't.

It is astonishing how frequently we are com-
pared, in the minds of a citizen of one of these
countries that we call miderdeveloped, to Russia
in terms of — well, which is the strongest, which
is correct, which is trying to take us over, which
is trying to be truculent, which is trying to start
the war.

IFe know we are peaceful. TFe know we are
a country that is ruled by ourselves. Government
only with the consent of the governed does not
start wars, because it is the people that have to
fight them that make the decision.

This is not true in dictatorships, but the people
of other countries don't understand this. I have
been asked by people very high up in some of these
governments, why do I not do so and so — why do I
not suppress a certain magazine — why do I not do
this, that, or the other thing ? My explanations —
although I think very convincing — are often, to
them, seemingly nothing.

A man said to me, "If you were our friend, you
would do so and so." They don't understand.
Therefore, they do not understand that our form
of government is essentially one that is stable in
preserving peace and that it is dictatorships that
can undertake the reckless adventure of war.

All of these problems are the kind of things that
have to be considered when we are talking about
the conflicting considerations of the safety of our
country and our desire to keep more of our own
money at home so we can spend it for what we
please and not give it to the Govermnent to spend.
And with this last desire, I must say I am earn-

tAay 27, 1957

847

estly in sympathy and I would very much like to
go out of this office some day with another even
bigger tax cut than we were able to put over in
1954.

Foreign Aid Program

The other day I was riding in an airplane, and
I had some friends with me. And they began to
criticize our eiforts in the foreign field and say
they thought we could save a lot of money there.
Let us remember, foreign aid doesn't have any
pressure group in any Congressman's district. It
is something that has to depend on the intelligence
of the American people and not on selfish interest.

And they said, "You say you are trying to be
economical and you are trying to save money, yet
you will spend this money over here, when you
won't even give a Texas drought-stricken man so
much corn meal and this and that and the other
thing."

"Well," I said, "this is what I am going to try to
explain in simple terms. We are riding in this
airplane, and let's assume we own it. We have
been looking at the operational costs, and we de-
cide we are spending too much money on it. Now
we are going to save some money.

"Well, we fiiid we have two stewards on this
plane. We figure that one can do. All right, one
steward fired.

"Well, we agree we won't fly it over such long
trips, we don't need so much fuel capacity, and we
can save money and carry a better payload by get-
ting rid of a tank. We won't fly it in bad weather,
so we will get rid of an expert navigator and make
the copilot double up. And we will cut down on
the furniture. We will get rid of the carpets,
and so on here.

"These are all the services that we have de-
manded up to date, but, now that we find out how
much it costs, we are ready to do without these
services, but we are still dissatisfied with what we
have saved."

So one bright fellow speaks up and says : "Well,
let's just cut out one of the engines — we won't
use so much gas." Now you are talking about
foreign aid. Foreign aid is one of the engines
that keeps this ship of ours afloat in the world
and going on a steady course. So the rest of the
passengers say: "Well, baloney — you take away
that engine, then wo lose one when we are out over
the sea, and we have probably lost our reserves

and we are down. We are now in an emergency
without the preparation to meet it."

Foreign aid, my friends, is something that is
being conducted to keep the United States secure
and strong. It is preventing the isolation of the
United States as a prosperous, rich, powerful
country. There would be isolation if the United
States refused to participate in the realization by
underdeveloped coimtries of their proper ambi-
tions for nationalization, for national independ-
ence, and for the economic base that will support
that individual independence. That's all there
is to it.

In my opinion, you can't take freedom and al-
low freedom finally to be pushed back to the
shores of the United States and maintain it in the
United States. It can't be done. There's too
much interdependence in the world.

Now I do not for one instant — this is getting
to be a long speech, too, isn't it ? — I do not for one
instant maintain that every dollar put into this
is wisely spent. I know there have been articles
published showing where in Iran or somewhere
else there were stores of supplies bought for a
people and they found out later that they bought
supplies for people that didn't even yet know how
to use a hoe, or something like that. Of course
there have been mistakes. There have been hu-
man people doing this. And sometimes they are
trying to do it in a great hurry, or they were ob-
sessed with the idea that money could buy friends
and money could keep friends. Well, that is all
untrue.

We can, though, with our attitude and with
some investment, help these people. It is dan-
gerous to make too close an analogy between our
own experience and that of some of these coun-
tries. You must remember, when we were de-
veloping and money was being invested in our
country from abroad, on a loan basis properly,
we had great natural resources. Those loans
practically constituted a mortgage on all those
great resources. We were very low in population.
We have been growing up to our resources in pop-
idation ever since. We have done it under con-
ditions that have produced the greatest pros-
perity any nation has known.

These other countries are already far over and
beyond their capacity, in some instances, of popu-
lation^without a cent. How do you collect capi-
tal in tliose countries to do tlie job that needs to

848

Department of Sfofe Bulletin

be done, to produce roads, railroads, communica-
tions— the things that allow people to pull them-
selves up by their bootstraps? That is what we
are trying to get people to do because we believe
in peace.

We believe in peace. And we believe that the
more these people rule themselves, the more that
the decision for world action lies in the hands of
the people wlio have to fight ware, tlien there will
be fewer wars. That's what we believe.

Now I come back to my first thought, and that
is how delighted I am to see you people interested
in these things. Unless the United States under-
stands these simple truths which I have just so
roughly touched upon this morning — unless our
people understand them and are ready to push
them through — then the future doesn't look
nearly so bright as it should.

If the United States does understand them,
then the sacrifice of money is not going to sound
in their ears like the sacrifice of our sons on the
battlefield. That is what we are trying to pre-
vent.

So let's make all the savings we can in the car-
pets and the chairs and the extra personnel and
all the rest of the things that we have been de-
manding, wherever we think it is safe and just
and fair among ourselves to do it. But let's not
throw away the engines of this ship of state.

United States Replies to Hungary
on Postal Cancellation Stamp

Press release 254 dated April 29

On March 8, 1957, the Hungarian Foreign Min-
istry, in a note handed to an officer of the Ameri-
can Legation in Budapest, protested against the
use of a postal cancellation stamp reading "Sup-
port Your Crusade for Freedom" on United
States mail reaching Hungary. The stamp, it
was alleged in the Hungarian note, was "obvi-
ously intended to incite the counterrevolutionary
elements defeated last November to further sub-
versive activity." The use of the stamp, the note
continued, violated article 1, section 2, of the Uni-
versal Postal Union Convention.

Subsequent to the receipt of the Hungarian
protest, it was learned that the Hungarian au-
thorities were returning to the senders all mail
bearing the cancellation stamps in question.

May 27, 1957

426314—57 3

On April 29 the American Legation in Buda-
pest delivered a reply to the Hungarian note of
protest. A copy of the operative portions of
this reply follows, together with a copy of the
Hungarian note of March 8, 1957.

U.S. Note of April 29

The Legation of the United States of America
presents its compliments to the Ministry for For-
eign Afl^airs of the Hungarian People's Eepublic
and has the honor to refer to the Ministry's Note
No. 3/35-58/1957, in which the Ministry raised
objections to the use by the United States postal
authorities of the postal cancellation stamp
"Support Your Crusade for Freedom" on pri-
vate letters entering Hungary from the United
States.

Under United States law the Postmaster Gen-
eral may grant permission for the use of special
cancellation stamps or postmarking dies for ad-
vertising purposes where the event to be adver-
tised is of general public interest and importance,
is to endure for a definite period of time, and is
not to be conducted for private gain or profit.
Under this authority in recent years, cancella-
tion stamp slogans have been used in connection
with programs variously i-elating to the promo-
tion of health, safety, and peace. Similarly, for
the past four years, the United States Postmaster
General has authorized for varying periods in
a number of United States post offices the
use of an identically worded cancellation stamp
advertising the Crusade for Freedom. This year
the stamp, which was intended solely to encour-
age voluntary domestic financial contributions
for this privately supported organization, was
used from January 1 through March 31 in certain
post offices and because of the mechanical proce-
dure followed was placed on correspondence pass-
ing through these post offices whether destined
for delivery in the United States or abroad. Mail
addressed to Hungary was in no instance espe-
cially singled out for stamping with this slogan
and only a minute portion of the mail so stamped
was in fact enroute to Hungary.

The United States was astonished to learn that,
whereas the Hungarian authorities have raised
no objection in previous years to similarly marked
letters, they have refused this year to deliver such
mail. It is indeed regrettable if the situation m
Hungary is now such that a slogan in support of

849

freedom is viewed by Hungarian authorities as
an incitement of "counterrevolutionary ele-
ments." This attitude of the Hungarian author-
ities would appear to imply that they regard as
"counterrevolutionary elements'' all those Hun-
garian citizens who aspire to freedom.

The United States Government cannot agree
that the use of the stamp in question constituted
a violation of Article 1, Section 2 of the Univer-
sal Postal Union Convention. Surely the use of
a cancellation stamp advertising a private or-
ganization dedicated to the cause of freedom in
no way conflicts with the development of inter-
national cooperation in the field of postal services.
On the other hand, the arbitrary action taken by
the Hungarian Postal Administration in return-
ing letters so stamped has prevented in many in-
stances normal correspondence between United
States residents and their relatives and acquaint-
ances in Hungai-y. The failure of the Postal
Administration of Hungary to notify the Postal
Service of the United States directly of its deci-
sion to prevent delivery of such letter mail is
likewise inconsistent with the principle of inter-
national cooperation in postal service. Thus it
would appear to the United States Government
that it is in fact the Hungarian authorities who
have violated the spirit of Article 1, Section 2 of
the Universal Postal Union Convention, which
states that the purpose of the Universal Postal
Union is to assure the improvement of postal serv-
ices and the ^Dromotion in that sphere of inter-
national cooperation,

Hungarian Note of March 8

The Ministry for Foreign Affairs of tlie Hungarian
People's Republic presents its compliments to the Lega-
tion of the United States of America in Budapest and
informs it of the following :

Competent Hungarian authorities have informed the
Ministry for Foreign Affairs that recently postal author-
ities of the U. S. Government have been endeavoring
to use private letters coming from the United States of
America to Hungary for incitement to subversion in this
country. A considerable part of these letters bears the
stamp "Support Your Crusade for Freedom," which is
obviously intended to incite the counterrevolutionary ele-
ments defeated last November to further subversive ac-
tivity and atrocities against the people. As to what kind

of freedom crusade is meant by the pertinent U. S. au-
thorities can be concluded from the activity of the Ameri-
can organization bearing a similar name which played
an active role in the counterrevolutionary events in
Hungary. The Government of the Hungarian People's
Republic condemns this activity of the U. S. Government
organs and expresses its astonishment at the fact that
such steps have been resorted to by the authorities of a
Government the representatives of which proclaim peace-
ful aspirations at international forums.

The Ministry for Foreign Affairs states that the use
of postal consignments for the above-mentioned aims vio-
lates Art. /1/-2 of Chapter I of the Universal Postal
Convention to which the U.S. Government is also a Party.
At the same time the American Government authorities,
not having learned from past experiences, through their
aforesaid activity are overtly and repeatedly interfering 1
with the internal affairs of the Hungarian People's Re-
public. By reasons of the facts referred to above the
Hungarian Government expresses its most energetic pro-
test and demands that the Government of the United
States of America put an immediate end to the use of
the inciting postmarks.

The Hungarian Government, consistently striving to
improve and to make cordial its relations with the United
States, sincerely hopes that the U.S. Government is led
by similar intentions, and for that very reason it expects
the U.S. Government to take firm measures in order to
stop the ill-willed propaganda activity mentioned above.

The Ministry for Foreign Affairs of the Hungarian
People's Republic avails itself of this opportunity to re-
new to the Legation of the United States of America the
assurances of its high consideration.

Eightieth Anniversary

of Rumanian Independence

Press release 279 dated May 9

On May 10 Kmnanians everywhere recall with
pride the anniversary of the independence of their
country. Although no longer celebrated b}' the
Communist Government of Rumania as the na-
tional holiday, this date continues to be associated
in the hearts and minds of the Rumanian people
with the historic events by which Rumania gained
independence from foreign ovei'lords in 1877 and
took its place as a sovereign state in the family of
nations.

The people of the United States, who know well
the invaluable quality of freedom, appreciate the
feelings of the people of Rmnania at this time and
extend to them their warmest greetings.

850

Department of State Bulletin

Visit of President Ngo Dinh Diem of Free Viet-Nam

FoTlmnng is the text of a joint statement re-
leased by the White House on May 11 after talks
held hy President Ngo Dinh Diem of the Republic
of Viet-Nam and President Eisenhoioer during the
former'' s visit to Washington., together ivith an
address made by President Ngo Dinh Diem before
a joint session of the Congress on May 9, greetings
exchanged on his arrival at the airport on May 8,
and a list of his official party.

JOINT STATEMENT, MAY 11

His Excellency Ngo Dinh Diem, President of
the Eepublic of Viet-Nam, and President Eisen-
hower have held discussions during President Ngo
Dinh Diem's state visit as the guest of President
Eisenhower during May 8-10.

Their discussions have been supplemented by
meetings between President Ngo Dinh Diem and
his advisers and Secretary of State Dulles and
other American officials. These meetings afforded
the occasion for reaffirming close mutual friend-
ship and support between the Republic of Viet-
Nam and the United States. The two Presidents
exchanged views on the promotion of peace and
stability and the development and consolida-
tion of freedom in Viet-Nam and in the Far East
as a whole.

President Eisenhower complimented President
Ngo Dinh Diem on the remarkable achievements
of the Republic of Viet-Nam under the leadership
of President Ngo Dinh Diem since he took office
in July 1954. It was noted that in less than three
years a chaotic situation resulting from years of
war had been changed into one of progress and
stability.

Nearly one million refugees who had fled from
Communist tyranny in North Viet-Nam had been
cared for and resettled in Free Viet-Nam.

Internal security had been effectively estab-
lished.

A constitution had been promulgated and a na-
tional assembly elected.

Plans for agrarian reform have been launched,
and a constructive jirogram developed to meet
long-range economic and social problems to pro-
mote higher living standards for the Vietnamese
people.

President Ngo Dinh Diem reviewed with Presi-
dent Eisenhower the efforts and means of the Viet-
namese Government to promote political stability
and economic welfare in the Republic of Viet-Nam.
President Eisenhower assui'ed President Ngo Dinh
Diem of the willingness of the United States to
continue to offer effective assistance within the
constitutional processes of the United States to
meet these objectives.

President Eisenhower and President Ngo Dinh
Diem looked forward to an end of the unhappy
division of the Vietnamese people and confirmed
the determination of the two Governments to
work together to seek suitable means to bring
about the peaceful unification of Viet-Nam in
freedom in accordance with the purposes and prin-
ciples of the United Nations Charter. It was
noted with pleasure that the General Assembly
of the United Nations by a large majority had
found the Republic of Viet-Nam qualified for
membership in the United Nations, which has been
prevented by Soviet opposition.

President Eisenhower and President Ngo Dinh
Diem noted in contrast the large build-up of Viet-
namese Communist military forces in North Viet-
Nam during the past two and one-half years, the
harsh suppression of the revolts of the people of
North Viet-Nam in seeking liberty, and their in-
creasing hardships. While noting the apparent
diminution during the last three years of Com-
munist-inspired hostilities in Southeast Asia ex-
cept in the Kingdom of Laos, President Eisen-
hower and President Ngo Dinh Diem expressed
concern over continuing Communist subversive
capabilities in this area and elsewhere. In par-
ticular, they agreed that the continued military
build-up of the Chinese Conununists, their refusal
to renounce the use of force, and their unwilling-

Ai ay 27, J 957

851

ness to subscribe to standards of conduct of civil-
ized nations constitute a continuing threat to the
safety of all free nations in Asia. To counter this
threat, President Ngo Dinh Diem indicated his
strong desire and his efforts to seek closer coop-
eration with the free countries of Asia.

Noting that the Republic of Viet-Nam is cov-
ered by Article IV of the Southeast Asia Col-
lective Defense Treaty, President Eisenhower and
President Ngo Dinh Diem agreed that aggression
or subversion threatening the political inde-
pendence of the Republic of Viet-Nam would be
considered as endangering peace and stability.
The just settlement of problems of the area by
peaceful and legitimate means within the frame-
work of the United Nations Charter will continue
to be the mutual concern of both Governments.
Finally, President Eisenhower and President Ngo
Dinh Diem expressed the desire and determina-
tion of the two Governments to cooperate closely
together for freedom and independence in the
world.

ADDRESS BY PRESIDENT NGO DINH DIEM TO
THE CONGRESS'

Mr. President, Mr. Speaker, distinguished Mem-
bers of the Congress of the United States :

It is a rare privilege for me to have this oppor-
tunity to address you today. To address you in
the halls of tliis Congress, where there has been
forged the destiny of one of the great countries of
the world.

I am proud to bring to the distinguished repre-
sentatives of the noble Republic of the United
States the fraternal best wishes of the Viet-
namese people. I bring as well the expression of
their profound gratitude for the moral and ma-
terial aid given by the people of the United States.
My people appreciate both its great import and
its profound significance.

Since the end of the last war, when Asia broke
her chains, the conscience of the world has at last
awakened to a profound and inevitable develop-
ment— the birth of Asian independence. This
realization has brought about a condemnation in
tlie most concrete terms of the old system of ex-
ploitation whicii governed, in the past, the rela-
tions between East and West. In its place firm

' Reprinted from Cong. Rec. of May 9, p. 5978.
852

efforts are being made to establish a new formula
of international cooperation, more adapted to the _
real needs of the world and to the new Asian phi- I
losophy. It is the battle for independence, the
growing awareness of tlie colonial peoples that the
origin of their poverty has been the systematic
withholding of technical development, coupled
with the growing nationalist and social sentiment,
that have combined to bring about a profound
transformation in the Asian state of mind and
given to its masses an irresistible dynamism.

The Asian people, long humiliated in their na-
tional aspirations, their human dignity injured,
are no longer, as in the past, resigned and passive.
They are impatient. They are eager to reduce
their immense technical backwardness. They
clamor for a rapid and immediate economic de-
velopment, the only sound base for democratic
political independence.

Tlie leaders of Asia, whatever their ideologies,
are all faced with the tragic urgency of the eco-
nomic and social problems of their countries. Un-
der the strong pressure of their peoples they are
compelled to adopt economic planning. Such
planning is bound to cause serious political reper-
cussions. It is for this reason that the main theme
of domestic political debates in Asian countries
centers around the extent of planning needed, the
indispensable method required to bring urgent
practical results. Should everything be planned
or should planning be restricted to essential sec-
tors ? Should democratic or should ruthless total-
itarian methods be adopted ?

It is in this debate — unfortunately influenced in
many countries by the false but seductive promises
of fascism and communism — that the efforts being
made to safeguard liberal democracy through aid
given by the industrial countries of the West play
a vital role. For the honor of humanity the
United States has made the most important con-
tribution to this end.

These, gentlemen of the Congress, in outline and '
general summary, are some of the problems facing
the countries of Asia. These are the goals to be
realized and the methods proposed. These are
also the internal pressures and temptations facing
Asian leaders.

In the great Asian land mass Viet-Nam finds
itself in the most sensitive area. Although Viet-
Nam faces the same general problems of other
Asian countries, because of her sensitive geopoliti-
cal position her problems are gi-eatlj' intensified.

Department of State Bulletin

Placed at one of the strategic points of access
for the important raw materials of Southeast
Asia — the possession of which is decisive in the
world, held back in her development by 100 years
of foreign domination, exhausted by 15 years of
war and destruction, the northern half of her ter-
ritory given to the Communists, Free Viet-Nam
is in a more menaced and critical position than
other Asian countries.

At great human sacrifice and thanks to the aid
given by the generous American people, Free
Viet-Nam has succeeded, in record time, to over-
come the chaos brought about by war and the
Geneva Accords. The national rehabilitation and
stability which have been achieved have per-
mitted the integration of over 860,000 refugees
into the economy of the other 11 million people in
Free Viet-Nam and have permitted the adoption
of important economic and political reforms.

Nevertheless, at the time all Asia is passing
from one civilization to another, at the moment
when all the important problems come up at once
to the leaders and seem to call for immediate solu-
tion, at a time when all must be done in a climate
of increasing revolutionary tension, it has become
necessary for Viet-Nam — more than for other
countries — to adopt a certain number of prin-
ciples, guidelines for action, not only to protect
her from the totalitarian temptations but, above
all, to assist her to attain independence instead of
anarchy, to safeguard peace without sacrificing
independence, to attain economic progress without
sacrificing essential human liberties.

It was for these reasons, basing myself on fim-
damental sources of Asiatic culture and within
our own Vietnamese democratic tradition, that I
had the honor to define this doctrine in the mes-
sage of the I7th of April, 1956, delivered to the
National Constituent Assembly of Viet-Nam. I
take the liberty of citing from it the most signifi-
cant passages, for they constitute the basis of our
Constitution. I quote :

In the face of the massive forces of material aud politi-
cal oppression which constantly menace us, we feel — more
than other people — the essential need to base our political
life on a solid foundation and rigorously to hasten the
successive steps of our actions along lines which, without
hesitation, will bring about the largest measure of
democratic progress.

This can only be spiritualist — that line followed by
himian beings in their intimate reality as in their com-

munity life, in their vocation as in the free pursuit of
intellectual, moral, and spiritual perfection.

We affirm, therefore, our faith in the absolute value of
the human being, whose dignity antedates society and
whose destiny is greater than time.

We affirm that the sole legitimate object of the state
is to protect the fundamental rights of human beings to
existence, to the free development of their intellectual,
moral, and spiritual life.

We affirm that democracy is neither material happiness
nor the supremacy of numbers. Democracy is essentially
a permanent effort to find the right political means in
order to assure to all citizens the right of free develop-
ment and of maximum initiative, responsibility, and
spiritual life.

We are convinced that with these guiding prin-
ciples as the central theme for the development of
our political institutions, Viet-Nam will be able to
make its political and economic regime not a closed
one but an open system, broader with each passing
day until it reaches the broad dimensions of man.

Mr. President, Mr. Speaker, Gentlemen of the
Congress, the Republic of Viet-Nam, the youngest
republic in Asia, soon will be 2 years old. Our
Republic was born among great suffering. She is
courageously facing up to economic competition
with the Communists, despite heavy and difficult
conditions, which become daily more complex.
Viet-Nam nevertheless has good reason for con-
fidence and hope. Her people are intelligent —
have imagination and courage. They also draw
strength from the moral and material aid they
received from the free world — particularly that
given by the American people.

In the face of increased international tension
and Communist pressure in Southeast Asia, I
could not repeat too often how much the Viet-
namese people are grateful for American aid and
how much they are conscious of its importance,
profound significance, and amount.

In actual fact, at any other moment of history
the conflicts between peoples have never been posed
in such immediate terms of civilization as they are
today. It is by having made timely contributions
in sufficient quantities for the rehabilitation of our
economic and technical life — which permitted a
higher standard of living — that the free world,
under the leadership of the United States, is assur-
ing the success of the new system of international
cooperation. This action has contributed to the
defense of Southeast Asia and prevented the raw
materials of this area from falling into Commu-
nist hands.

May 27, 7957

853

Although our economy has suffered greatly from
war, destruction, and colonialism, the people of
Viet-Nam are now increasing their contribution
to their country. A few months ago the National
Assembly voted new and higher taxes to bring in
needed revenues for the national budget. A na-
tional conscription ordinance was recently promul-
gated, and a comprehensive declaration of policy
was issued 2 months ago for the purpose of encour-
aging foreign private investment.

It is on this high moral plane that we pay tribute
to the generous and unselfish assistance we have
received from the people of the United States. It
is on the same plane that the interests of Viet-Nam
are identical with the interests of the people of the
free world. It is on this plane that your and our
fight is one and the same. We too will continue to
fight communism.

It is in this conviction and in the ardent and
always present remembrance of the strong sym-
pathetic comprehension with which the American
people and Government have followed our efforts
that I close, in thanking you once again, Mr. Presi-
dent, Mr. Speaker, and Gentlemen of the Con-
gress, for the honor you have bestowed on me and
for your kind attention.

EXCHANGE OF GREETINGS AT AIRPORT

White Honee press release dated May 8
President Eisenhower:

Mr. President, it is indeed an honor for any
American to invite you to this country. You
have exemplified in your corner of the world
patriotism of the highest order. You have
brought to your great task of organizing your
country the greatest of courage, the greatest of
statesmanship— qualities that have aroused our
admiration and make us indeed glad to welcome
you.

We hope sincerely that the talks that we shall be
able to have in these next few days will do much to
strengthen still further the friendship between
your country and this one. You are indeed wel-
come, sir.

President Ngo Dinh Diem:

Mr. President, this is a great joy for me to be
again in Washington and a great honor to be wel-
comed by you. I thank you very much for your

854

kind words about me. But it is mostly the cour-
age of the Vietnamese people, your own faith in
my country, and unselfish American aid which has
accomplished a miracle at Viet-Nam.

The history of these last 30 months is a shining
example of what faith, determination, and solidar-
ity can do to uphold and strengthen freedom in the
world.

MEMBERS OF OFFICIAL PARTY

The Department of State announced on May 3
(press release 262) the members of the official
party for the visit of President Ngo Dinh Diem to
Washington, May 8-11. They are as follows:

Ngo Dinh Diem, President of the Republic of Viet-Nam
Tran Van Chuong, Ambassador of Viet-Nam to the United

States
Nguyen Huu Chau, Secretary of State for Interior and to

the Presidency
Tran Le Quang, Secretary of State for Public Works

and Communications
General Tran Van Don, Chief of Staff of General Staff,

Acting Senior Aide-de-Camp
Huynh Van Diem, Director General of Planning
Vu Van Thai, Administrator General of Foreign Aid
Vo Van Hai, President's Chief Private Secretary and

Acting Protocol Officer
Ton That Thieii, Chief of President's Press and Informa-
tion Service and Interpreter

Wiley T. Buchanan, Jr., Chief of Protocol, Department

of State
Elbridge Durbrow, American Ambassador to the Republic

of Viet-Nam
Rear Adm. D. L. MacDonald, USN, American Aide to the

President of the Republic of Viet-Nam
Victor Purse, Deputy Chief of Protocol, Department of

State
Stuart P. Lillico, Press OflScer, Department of State

U. S. Air Force Missile Unit
To Be Stationed on Taiwan

The following annovncement was released
jointly at Taipei on May 7 by the American Em-
bassy and the Foreign Office of the Government
of the Republic of China.

The United States and the Republic of China
in 195-1 entered into a mutual defense agreement.^
In conjunction with measures already taken by the

' For text, see Buixetin of Dec. IS, 1954, p. 899.

Department of State BuUetin

United States to strengthen the defenses of Tai-
wan and thereby of the Western Pacilic, the
United States and tlie Republic of China have
agreed to the future stationing on Taiwan of a
U.S. Air P^orce unit, equi^jped with tactical mis-
siles, Matador.
As is the case elsewhere in the world, including

Nato countries, this action is taken wholly for the
defensive purpose of deterring and if necessary re-
pelling attack.

For many months the Chinese Communists
have been threatening the use of force in the Tai-
wan area and greatly developing their mainland
offensive capabilities opposite Taiwan.

The Element of Faith in the Conduct of Foreign Affairs

hy Roy R. Riibottom, Jr.

Acting Assistant Secretary for Inter-Amhican Affairs -

In the great issue which faces our country to-
day— the challenge of godless materialistic com-
munism— the most potent resource we possess is
our faith. This must be nurtured and strength-
ened— faith in ourselves, faith in our own Gov-
enunent, faith in our friends and allies. Much
of the strength which we are able to muster to
meet the Communist challenge comes from the
fact that in certain areas of our foreign relations
we are able to, and do, act on a basis of faith. An
area in which this is true, and on which I want
to talk to you tonight, is in our relations with the
20 Republics of Latin America.

The relationship wliicli exists within this inter-
American community has been characterized as
being one of "good neighbors" and, more recently,
as "good partners." Both of these expressions
are appropriate, but, to me as least, they do not
fully describe our unique and intimate relation-
ship. Neighborliness there certainly is in the
warmth of our friendships and in the sharing of
our problems and their solution in the best in-
terest of all concerned. Partnerehip is likewise a
fact in our relationship, for we are all convinced
that in contributing to the economic and general
well-bemg of each other we contribute to our own
strength. But over and above this neighborliness

' Address made before the Yale Political Union, Yale
University, New Haven, Conn., on May 7 (press release
270).

and partnership there has developed a spiritual
kinship which distinguishes this from ordinary
relationships.

This kinship is built on good faith. I like to
think of it in terms of the relationship which
must have grown up among pilgrims in ancient
times who journeyed together in a band toward
some holy shrine. They were intent upon reach-
ing a common goal, of great significance to each
individually, by a common means or road which
each had individually chosen for that purpose.
They were confronted with common perils, which
they could best confront by joining together for
mutual protection and succor. Of varying de-
grees of wealth, of difl'erent size and age and
background, each still retained his individuality
or sovereignty, but they pressed on united by
their common objective, which was essentially
spiritual. All of these things are as true of the
21 ^Vmerican Republics as they were of this hypo-
thetical band of pilgrims.

This unique relationship, spiritual as well as
practical, is not something which came into
being overnight by some miraculous means; it is
the conception of many of our great leaders,
something which has been striven for since the
early part of the last century when the states of
Latin America liberated themselves and joined us
in American freedom. Our own success in
achieving independence and setting up for our-

Alay 27, 7957

855

selves a representative government provided the
inspiration and model for their independence
movements.

Wliile this concept of an inter- American com-
munity may be traced back to our early history,
its development has been neither easy nor auto-
matic. Many factors worked to frustrate early
efforts to unite us, largely distance and difficult
geography, which are now being overcome.
Later some countries, including our own, adopted
policies which temporarily made impossible the
development of this commimity. It is only in the
past 25 years, and particularly in the past decade,
that those factors which tended to separate the
American Republics began to disappear. The
progress in tliat period has been so great that
Secretary Dulles said 2 years ago : ^

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 free 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, in-
dependent nation, its rich fruits beneficial to all man-
kind. 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 not surprising tliat this past decade has
also been the one in whicli the American Repub-
lics have made their greatest gains in the
achievement of international peace and economic
progress.

Effectiveness of Inter-American System

I would like now to review some of the concrete
accomplisliments of our 21 Republics in our joint
endeavors during this period.

In recent years the effectiveness of the inter-
American system in the maintenance of peace has
been particularly outstanding. The likelihood
of serious armed conflict between countries of
this hemisphere has become extremely unlikely
because of this system of international relations
which we now enjoy. How was this accom-
plished ?

First, over a period of years our countries have
developed a set of principles which govern their
relations with each other, placing these relations
on a firm and mutually accepted basis of law and
morality. These principles derive their strength.

' Bulletin of May 2, 1955, p. 729.

perhaps equally, from their basic simplicity and
their miiversal acceptance within the inter-
American community. The most fundamental of
these principles are :

— The recognition of the sovereign equality of

states,
— The duty to settle disputes by peaceful means,
— The doctrine of nonintervention; that is,

that no state shall have a right to interfere in the

internal affairs of another.

These principles, which have during the past
generation been so frequently and effectively ex-
pressed by leading figures thioughout the hemi-
sphere, have become universally accepted by our
peoples. Their effectiveness as guidelines for
our relationships within the American commu-
nity urges us to maintain and further develop
them for the future and to encourage their ex-
tension to other areas of the world.

Of these principles there is one which many
people in the United States, and also in Latin
America, are just beginning to comprehend.
That is the doctrine of nonintervention. Perhaps
it is because they feel such a close kinship to their
neighbors that they feel they should tell them
how to run their domestic affairs. The homely,
but truthful, maxim to be drawn fi'om that situa-
tion is the one we recurrently find in the comic
strip — there is notliing more certain to bring to-
gether the battling husband and wife than the
well-intentioned neighbor who steps in piously to
settle everything. For a period the United States
took upon itself the role of such a neighbor. We
not only reaped animosity of the wives and hus-
bands but of the entire neighborhood, who, fur-
thermore, found a number of things in our own
household to find fault with.

Assuredly, there is ample opportunity for any
individual in the United States to express his
opinions and to offer constructive suggestions
with regard to current situations in the Americas.
In fact, this is healthfid. Our Latin American
friends are just as prone to air their views on
such United States subjects as segregation, labor
racketeering, or the size of our budget. But I do
feel that none of us should expect our governments
to play the part of the well-intentioned neighbor
in the comic strip.

Not a great many years ago tlie United States
assumed the self-appointed role of policeman in
parts of this hemisphere. The iJJ will which was

856

Department of State Bulletin

generated by this unhappy coui*se of action among
the people of Latin America is only now disap-
pearing. Today, in the Organization of Ameri-
can States, we have the police power vested where
it should be, that is, in all of the 21 Eepublics
which make up that organization. Maintenance
of the peace in the Americas is now a joint re-
sponsibility. The multilateral machinery for
carrying out this responsibility was created, and
agreed to, in the Inter- American Treaty of Re-
ciprocal Assistance signed at Kio de Janeiro.

Maintaining the Peace

Since tile Rio Treaty came into force in 19-19,
there have been four occasions in which it has
been applied in order to deal with threats or acts
of aggression involving American states. In
each instance the American governments, acting
through the Organization of American States,
demonstrated their readiness to do what was nec-
essary to maintain the peace. In so acting the
governments were supported by public opinion,
which was aroused throughout the continent, and
in each case peace has been maintained or re-
stored without any resort to force or sanctions.
Further than that, some of the countries between
which serious conflicts arose have been helped to
achieve new eras of cordiality and friendship as
a result of the intervention of the Organization
of American States.

This is a timely subject. Eight now an Oas
fact-finding committee is in Central America to
investigate the Honduras-Nicaragua dispute
which has threatened the peace between those
countries.^ "WHien the Rio Treaty was invoked
last Wednesday [May 1], the Oas Council met
at once and by Friday noon the well-oiled peace
machinery was functioning. The committee,
composed of representatives of Panama, Mexico,
Argentina, Bolivia, and the United States, was at
the scene — in Tegucigalpa on Saturday, in Mana-
gua on Sunday. Reports indicate that the fight-
ing has been stopped. This is indicative of both
the speed and effectiveness with which the Oas is
prepared to act in a situation threatening the peace
of the hemisphere. Its value in an emergency
such as this would be difficult to exaggerate.

The action of the Oas is a concrete example of
the importance of faith in tlie reestablishment of
peaceful relations between two neighboring re-

publics. The Oas committee which is investigat-
ing the disputes is not empowered to enforce any
decisions which it may make, yet such is the
prestige of the organization, and the confidence
which its members have in it, that it was quickly
able to arrange a cease-fire. It can be hoped that
this will provide the time and the atmosphere
necessary for the development of a long-term
solution to the problem. Our Government, as a
member of the Oas, stands ready to support the
constructive efforts of the Oas to resolve this con-
troversy.

It is significant that peace in the Americas is
not one imposed by a superior power. It is a
peace based on the expressed will of the people and
the consequent self-restraint of governments.
This peace is, in fact, more than a passive absence
of armed conflict — it is a dynamic force. It is
faith at work.

For instance, the regional mutual defense
organization formalized in the Rio Treaty of 1947
served as the prototype for Nato and other mutual
defense arrangements which have been created
more recently within the framework of the United
Nations. Two features which are fundamental in
the Rio Treaty are those relating to collective self-
defense and common action in the event of armed
attack, and to the steps to be taken when faced
with situations which threaten the peace and secu-
rity of the American states but that fall short of
an armed attack. The framework of many col-
lective defense treaties which free nations have
created since 1947 is based on these two features.
Even the structure of the United Nations organi-
zation benefited from the experience of the Amer-
ican Republics in the development of our com-
munity organization.

A noteworthy step in the development of hemi-
sphere security was taken at the Tenth Conference
of American States in Caracas in 1954. While
the doctrine that there should be no further Euro-
pean colonization or the extension of any despotic
political system to the American Hemisphere had
been accepted by all of us, the Caracas Declara-
tion * gave this truth a further historic applica-
tion. It was recognized that, if international
communism should gain control of the political
institutions of any one American state, it would

= mi.. May 20, 1957, p. 811.
May 17, 1957

' For text of "Declaration of Solidarity for tlie Preser-
vation of the Political Integrity of the American States
against International Communist Intervention," see iMd.,
Apr. 26, 1954, p. 638.

857

be a threat to the security of us all and would call
for joint action. This mutual determination not
to compromise with communism, this mutual
recognition that an extension of Communist
colonialism to our hemisphere would imperil the
peace of the Americas, heartened the people of
Guatemala to recover their lost freedom from the
Communists then dominating their Government.

An example of the inventiveness and imagina-
tion which the Organization of American States
brought to bear on the problem of maintaining
peace in the hemisphere occurred in 1955. On
January 11 of that year the Government of Costa
Rica informed the Council of the Organization of
American States that its territory had been in-
vaded by forces based in Nicaragua. At the re-
quest of Costa Rica, the Council of the Organiza-
tion of American States met immediately. It in-
voked the provisions of the Rio Treaty and as a
first step sent an investigating committee to the
scene. Tliis committee, composed of representa-
tives of the United States, Mexico, Brazil, Para-
guay, and Ecuador, was named at 9 p.m. By
6 a.m. the following morning they were airborne.
The following day this Oas investigating com-
mittee took what was a historic decision. In
view of the circumstances it foimd, it set up for
the firet time an international aerial patrol under
the supervision of an Oas body for the purpose of
making peaceful observations over the region af-
fected by the conflict. Four American nations
participated in this operation luider the aegis of
the Oas.^

Not only was this use of peaceful observation
flights under the supervision of the investigation
committee a new development in inter- American
peace machinery — it anticipated the whole "open
skies" concept of the use of aircraft to control po-
tential belligerent operations.

Committee of Presidential Representatives

Last summer, when he met with the other
American Presidents in Panama, President Eisen-
hower made a new proposal designed to strengthen
what he called "the most successfully sustained
adventure in international community living that
the world has ever seen" — that is, the Organization
of American States.* At this meeting of Presi-

° For an address by Henry F. Holland on "OAS Action
in the Costa Rioan Conflict," see ibid., Jan. 31, 1955, p. 178.
° Ibid., Aug. 6, 1950, p. 219.

dents there was ready acceptance of his proposal
that each President appoint a special personal
representative to meet together and prepare con-
crete recommendations for making the Organiza-
tion of American States a more effective instru-
ment in those fields of cooperative effort that affect
the welfare of the individual. Following prelimi-
nary meetings held last September and in Janu-
ary of this year, this Inter- American Committee of
Presidential Representatives is now in Washing-
ton completing their recommendations for the ex-
pansion of the activities of the Oas in the eco-
nomic, financial, social, and technical fields.
Based on the success of the Oas in the solution of
political problems, it can be expected that these
expanded activities in the economic and related
fields will have an impact on the solution of the
problem confronting all of our peoples as individ-
uals— how to provide a more prosperous, healthful,
and rewarding life for themselves and their
families.

Much yet remains to be done in this respect in
our hemisphere. It is therefore fortunate that
Latin America — to deal with that part of the area
outside the United States and Canada — consti-
tutes one of the most rapidly progressing regions
of the world. Population is increasing there more
rapidly than in any other of the world's major
regions. For the first time since the colonial
period, the population of Latin America, in 1950
exceeded that of the United States. A continua-
tion of the expected increase there will mean that
by the year 2000 Latin America will have a popu-
lation double that of the United States and
Canada combined.

This erowth demands a tremendous increase in
tlie production of goods and services merely to
maintain tlie area's existing standard of living.
It is encouraging to find that Latin America is
not, however, merely standing still. Actually,
taking the area as a whole, the average annual
increase of gross national product, in real terms,
has been 5.5 percent since the end of World War
II. This may be compared favorably with the
rate for Western Europe or the United States.
Looked at in its true perspective, far from being
an "underdeveloped" area, as some have sug-
gested, Latin America comprises an economic
frontier where today the world's most dramatic
economic development is going on.

858

Department of State Bulletin

This, however, in no wiiy justifies any sense of
complacency. Future progress in Latin America
■will have to be achieved at the same price as its
past notable development — hard, resourceful
work, self-discipline, and a willingness to grap-
ple with difficult problems. In this task, we can
expect our neighboi-s to continue to depend bas-
ically on the enteri)rise of the individual to create
from their resources the wealth needed for this
growth. The building of the future of this great
continent, as big a task as it is, is not too big for
the private enterprise of the 350 million people
who inhabit it. The role of govenmients, as we
have long since learned, should be to provide
conditions imder which the responsible individual
citizen can achieve his full God-given potential.

The people of the United States are making
an important contribution to the economic de-
velopment of Latin America. They have pri-
vate direct investments there totaling over $7
billion and are increasing this investment at the
rate of $500 million per year. This is of great
mutual benefit. Earnings on these investments
are rewarding to the investors, but, further, they
also provide 600,000 Latin American employees
with a billion-dollar annual payroll, they pay
over a billion dollars in local taxes, and they
produced goods and services valued at $4.8 bil-
lion in 1955 and made a net contribution to the
Latin American economies in that year of $3.5
billion.

This contribution made by our private citizens
to their economies is complemented by our Gov-
ernment, through Export-Import Bank loans,
which in the past 4 years totaled $1.1 billion for
Latin America, by our technical assistance pro-
grams, by emergency grant aid in three instances,
and by the sale of surplus agricultural commodi-
ties for local currencies.

I have discussed, or outlined, a number of as-
pects of these relationships which go to make of
the inter-American community the closely knit

organization it is today. My purpose has been
to underscore the reasons why the element of
faith is so essential in the conduct of our inter-
national relations with these neighbors, these
partners, these fellow pilgrims. That this ele-
ment pervades our relation with our Latin Amer-
ican neighbors is perhaps the reason why the
headlines of our newspapers seldom are con-
cerned with these relationships. This apparent
lack of editorial concern can be, and has been,
misconstrued as lack of sympathy or disinterest.
I am convinced that it is neither. It is rather
that in the world of today, in which crises oc-
cur on an almost hourly basis, we in the Ameri-
cas live in such an intimate and peaceful rela-
tionship as to seldom call for sensational news
treatment.

The people of the United States have reason
to have faith in their friends, their allies, their
fellow Americans with whom we share this New
World of ours, as they — our Latin American
friends and allies — are entitled to have faith in
us. United in this faith, we peoples of the Amer-
icas have an obligation to work together with
others in bringing to the rest of the world the
peace, justice, material well-being, and spiritual
progress such as we enjoy in tliis hemisphere.

United 'States Recognizes
New Government of Haiti

Press release 274 dated May 7

The United States Embassy at Port-au-Prince
on May 7 informed the Executive Council of
Government of Haiti that the United States Gov-
ernment has recognized the new Government of
Haiti.

Gerald A. Drew was sworn in as United States
Ambassador to Haiti on May 6. He plans to
arrive in Port-au-Prince on May 9.

May 17, 1957

859

Widening Horizons for Women in Latin America

hy C. Allan Stewart

Deputy Director, Office of Middle American Affairs ^

Everybody knows the heroic story of the pio-
neer women in this hemisphere. The patterns of
that epic of tlie frontier and the settlement were
pretty much alike throughout the New World, m
Latin America as well as in the English colonies.
There was, of course, one essential difference:
Spanish women came here a full century and a
quarter before any English woman set foot on
American soil. In fact, as you may remember.
Ponce de Leon, who sailed with Columbus on his
second voyage in 1493 and, in due course of time,
himself sailed from Puerto Rico to discover Flor-
ida, married the daughter of another one of those
Spanish colonizers.

However, while we are all familiar with stories
of how fully women participated in the gi'ound-
breaking and the homemaking, it is not so gen-
erally known that, from the very beginning,
women have contributed significant leadership as
well. An Indian princess, Anacaona, on the West
Indian island of Hispaniola, was one of the first
to further friendship between conquistadores and
Indians. She befriended Columbus and his com-
panions and helped greatly in establishing the
Spanish settlement. It is true that she was ulti-
mately betrayed and slain, but after four centuries
her memory endures as a woman who contributed
toward laying bases of understanding and co-
operation, as Pocahontas was to do generations
later in Virginia. Another Indian girl, the wise
and lovely Marina, was guide and companion to
Cortes in the conquest of Mexico and interpreted
for him not only the speech but the cidture and
psychology of her people.

' Address made before the Miami Women's Club, Miami,
Fla., on Apr. 16.

It is even more surprising to reflect that in the
difficult period of colonization four women in
Latin America ruled as governors, a post of great
difficulty and danger. They were Isabel, the wife
of Hernando de Soto, whom he left in Cuba as
acting governor when he set out on his last expedi-
tion; Catalina Montejo, who governed in Yucatan
after her father's death ; Beatriz, the wife of AI-
varado. Conquistador of Guatemala, who assumed
the governorship when her husband was slain in
battle; and Brites de Albuquerque, who in the 16th
century governed Nova Lusitania, one of the most
important provinces of Brazil. In the 17th cen-
tury two remarkable women poets wrote in and
of the Americas — Anne Bradstreet in Massa-
chusetts, whose work is too often dismissed too
summarily, and Sor Juana Ines de la Cruz in
Mexico, the first great lyric voice of America to be
heard overseas and still one of the great lyric poets
of world literature.

In that tradition, we should recall also Gabriela
Mistral, the Chilean poet and Nobel Prize winner,
whose recent death was mourned around the
world.

Latin American Women in Public Affairs

One of the most striking features of present-day
Latin American life is the increasing participation
of women in public affairs. At the present time
women are empowered to vote in elections and
themselves to be candidates for office in every
American Republic except one — Paraguay. In
Haiti, while full voting privileges for women are
authorized, women will have their first opportu-
nity of casting their votes for president in the next
elections.

860

Department of State Bulletin

Up to the present, no American Republic has
had a ^Yoman president, but several have had
women cabinet ministers. Now holding that rank
are Senora Cecilia de Remon, Minister of Labor,
Social Work, and Health of Panama, and Senora
Josetina Valencia de Ilubach, Minister of Educa-
tion of Colombia. There are also distinguished
women ambassadors, including at present Senora
Amalia de Castillo Ijedon, Ambassador of Mexico
to Sweden, and Senorita Minerva Bernardino,
Ambassador of the Dominican Republic to the
United Nations. There arc many women on the
Latin American delegations to the U. N. One of
them, Senorita Uldarica Manes of Cuba, is now
sitting on the Securfty Council in representation
of her country.

Several of the American Republics have had
women members in congress for a number of years
past. Latin American women also take an active
part in municipal affairs. There are many wom-
en mayors. In fact, I understand that, so far as
is known, the first woman ever to hold the office of
mayor anywhere was in Chile in the 19th century.

Three weeks ago a very festive event occurred
in the Chilean capital, when Senora Maria Teresa
del Canto, Mayor of Santiago, gave a sistei'ly em-
brace of welcome to Senora Felisa Rincon de
Gautier, Mayor of San Juan, Puerto Rico. The
Mayor of San Juan, whom I am happy to call my
friend and who is probably known to many of
those here present because of her frequent visits
to Florida, is on a good-will tour of South Amer-
ica. She may be said to represent, as does the
Commonwealth of Puerto Rico itself, a combina-
tion of Hispanic and Anglo-Saxon traditions and
influence. The result is dynamic — and attractive.
Very fittingly, at Panama last year Dona Felisa
presided over the Inter-American Municipal Con-
gress, an association of mayors and city officers
from throughout tlie hemisphere. In this connec-
tion let me interject an interesting statistic:
Puerto Rico has 9 women mayors ; in our 48 States
there are 50.

Progress in Education

No discussion of women in contemporary Latin
America would be complete without some consid-
eration of their progress in the field of education.
Here again, it may surprise you — at least it sur-
prised me — to hear that a Latin American insti-
tution of higher learning, the University of Chile,

was the first university in the world to open its
doors to women students. At the present time,
as I am informed from tlie Inter-American Com-
mission of Women headquarters at the Pan
American Union, no university in Latin America
denies women the right to enroll. There is in
fact an increasing enrollment of women in higher
professional studies, including such unexpected
courses as engineering.

The governments of the other American Re-
publics are also demonstrating an intensified in-
terest in the whole subject of vocational education
for women. It may be said that this parallels a
forceful campaign, of hemisphere proportions, in
favor of equal pay for equal work. Several coun-
tries have women as university deans, among them
Panama, El Salvador, and, again, Chile.

Inter-American Commission of Women

You are probably aware, to some extent at
least, of the work of the Inter-American Com-
mission of Women, to which I referred a few
moments ago. This Commission, created by tlie
Sixth Conference of American States at Habana
in 1928, is a specialized agency of the Organiza-
tion of American States. Its purpose is to advise
the Oas on matters affecting the status of women
in the American Republics and to submit reports
and recommendations to the Conference of Amer-
ican States, which meets regularly every 5 years.
(The nth such conference will meet at Quito,
Ecuador, next yeai*.) The Commission also
studies problems affecting women throughout the
hemisphere, advises the member govermnents on
proposed legislation affecting women, and seeks
repeal of discriminatory legislation.

The 21 members of the Inter- American Com-
mission of Women represent the 21 American
Republics, and each is appointed by her own Gov-
ernment. The Commission holds a regular annual
meeting and occasionally has additional meetings.
One of these latter is a Conference on the Eco-
nomic Status of Working Women in the Ameri-
cas, scheduled to be held at Mexico City, April
20 to May 1. In addition to the members of the
Inter-American Commission of Women itself,
this conference will include technicians and direc-
tors of women's labor offices in the several
countries and representatives of the International
Labor Office and of the Inter- American Economic
and Social Coimcil of the Organization of Amer-

Ma>f 27, 1957

861

ican States. The agenda items include expanding
and improving opportunities for women in trade,
small industries, and cooperatives; social legisla-
tion for working women in domestic service as
well as in salaried occupations; and the educa-
tion of women for remunerative employment.

The regular annual meeting of the Inter-
American Commission of Women, its 12th As-
sembly, will be held at the Pan American Union
Building in Washington, D. C, in June. The
11th Assembly met last year in Ciudad Trujillo,
capital of the Dominican Republic.^ At each of
these yearly assemblies, the Commission confines
itself to two major fields of interest. Last year
these were political and civil rights for women,
including problems in the field of family and
property law. At the forthcoming meeting at
the Pan American Union the two primary topics
will be education and economic opportunities.

There can be no doubt that the continuous work
of the Inter- American Commission of Women dur-
ing the past 29 years has been an influential con-
tributing factor in the enlargement of opportuni-
ties for women educationally, professionally, and
economically and no less, undoubtedly, has helped
greatly in obtaining suffrage for women voters.
It is also true that the brightening picture in these
respects is not due to any one cause alone but is
part of the overall hemisphere picture of widening
horizons of progress and opportunity. Women in
all our countries are making their own contribu-
tions, as private citizens as well as members of
organizations, and certainly in nonofficial as well
as official capacities.

Exchange Program

Our own Department of State is well aware of
the influence and significance of women in making

" For a report on the 11th Assembly by Mrs. Frances
M. Lee, U.S. Representative on the Commission and U.S.
delegate to the Assembly, see Buhetin of Oct. 8, 1956,
p. 562.

inter-American policies effective. One proof of
this is the fact that a group of six Latin American
women who are leaders in their several countries
and respective fields are visiting the United States
as guests of our Government. Their 5 weeks'
tour will include Washington, Chapel HUl, At-
lanta, Memphis, Phoenix and Flagstaff, San Fran-
cisco, Denver, Flint, and New York City.

The visitors will confer with women whose
interests and activities are similar to their own.
They will also observe the work of organizations
and of individual citizens in our community and
national life, especially the programs and com-
munity service of organizations, the development
of leadership, training for volunteer services, the
cooperation of organizations with one another,
and citizen education programs. It may also be
taken for granted that the visit of this group of
distinguished Latin American women will afford
all who come in contact with them a wealth of in-
formation about the status of women in Latin
America, their work, and their admirable accom-
plishment.

It occurs to me that you might like to know the
special interests of these six visitors. They are
Miss Hilda Macedo, Chief of Women's Police and
Professor of Law and Criminology at the Univer-
sity of Sao Paulo, Brazil; Miss Maria Edilia
Valero Herrera, editor of the magazine Ecos de
America and executive secretary of the Hogar
Americano, of Venezuela; Miss Maria Esther
Talamantes, president of the Mexican branch of
the International Federation of Women Lawyers,
of INIexico; Mrs. Leticia Antezana de Alberdi,
president of the National Council, Women's
Catholic Action, of Bolivia; Dr. Anita Arroyo
Gonzalez, columnist of the Habana daily Diario
de la Marina, and Assistant Professor of Litera-
ture at the University of Habana, Cuba ; and Mrs.
Celeste Samayoa de Espada, president of the Al-
trusa Club of Guatemala and free-lance writer,
of Guatemala.

862

Department of State Bulletin

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

The Common Market and the GATT

Statement hy Carl D. Corse

Chief, Trade Agreements and Treaties Division '

The treaty creating the European Economic
Community is one of the most important subjects
ever considered in the history of this body. The
large attendance at this meeting is a measure of
its significance.

The movement toward European integration, of
■which the treaty in question is the latest mani-
festation, is one of the striking developments of
our time. The creation of a large continental mar-
ket in Europe, characterized by a high degree of
competition and mobility of resources, can con-
tribute to the dynamic growth, prosperity, and
long-term economic health of Europe. Such prog-
ress would permit this major trading area to play
an increasingly active role in the elimination of
trade barriers and the continuing movement to-
ward worldwide multilateral trade and converti-
bility of currencies.

It is these considerations which in part have
motivated the support which the United States
has given to the movement for the economic inte-
gration of Western Europe. We believe that this
movement is consistent with these objectives of
the general agreement and the expansion of multi-
lateral world trade. Indeed, we are convinced
that in order to achieve its own objectives the
proposed common market must pursue this same
goal. For continental Western Europe, one of the
world's great trading areas, has a major stake in
the preservation and improvement of the world-
wide trading system.

^ Made before the Intersessional Committee of the Gen-
eral Agreement on Tariffs and Trade at Geneva, Switzer-
land, on Apr. 25. Mr. Corse was U.S. Delegate to the
Intersessional Committee. This meeting, attended by
representatives of 31 of the 35 governments that are Con-
tracting Parties to the GATT, was held to discuss pro-
cedures for a forthcoming GATT review of the European
Common Market Treaty, which has been signed, subject
to ratification, by Belgium, France, the Federal Republic
of Germany, Italy, Luxembourg, and the Netherlands.

May 27, 7957

The Contracting Parties had these considera-
tions in mind when they recognized that the con-
tribution which a genuine customs union would
make to world trade and economic progress justi-
fied a derogation in its favor from article I of the
general agreement.^ At the same time they estab-
lished in article XXIV certain tests by which to
judge if a particular set of arrangements were in
fact likely to produce a genuine customs union.
One of our major purposes in considering the
Common Market Treaty will be to judge if the
proposed arrangements meet these tests.

In considering the relationship of this treaty
to the general agreement, it is important, however,
to avoid a narrow or legalistic approach, which
in our view would serve neither the particular
interests of the Six and of the other Contracting
Parties, on the one hand, nor our common interest
in the healthy functioning of the general agree-
ment on the other. Wliile the Gait review will
be directly concerned with a decision on certain
trade provisions of the treaty, it will be helpful
to have in mind that the treaty involves a system
going far beyond a simple customs union, since it
provides for a far-reaching merger of economic
interests and policy in a new entity — an economic
community. The Six are thus undertaking among
themselves a complex series of interrelated obli-
gations in the interest of greater economic prog-
ress and well-being. Furthermore, the proposed
union is unprecedented in its size and importance
with the result that the potential repercussions for
all the Contracting Parties are especially great.
In the process of the general-agreement review it
is reasonable to consider the probable effect of the
treaty in concrete and practical terms on the trade
of the Contracting Parties. We should seek in
this way an adjustment of interests to the benefit
of the Contracting Parties as a whole.

As you are well aware, the treaty we are con-

' Article I provides that all Contracting Parties shall
accord most-favored-nation treatment to all other Con-
tracting Parties.

863

sidering is a formidable document, and we in the
United States have so far been able to give it only
preliminary study. From this study we believe
that the treaty, in its broad lines, is in conformity
with the spirit and purposes of the general agree-
ment. It provides for the elimination of all
tariffs, quantitative restrictions, and analogous
barriers within a defined period; it provides a
"plan and schedule" for such elimination; it
covers "substantially all" trade among the member
countries. In these respects, it appears to meet
the major tests in article XXIV of the general
agreement.

There are, however, certain areas which, on the
basis of our preliminary study, appear to give
cause for concern. A few of these arise directly
from the text of the treaty itself. More of them
derive from provisions whose meaning is not fully
clear to us. In any case, a great deal will un-
doubtedly depend on the spirit and manner in
which the treaty is administered. I do not want
to go into great detail on these points at this time,
but I would like to mention a few to which we have
given some attention.

One problem of major concern to all the Con-
tracting Parties will be the level of the common
external tariff. A judgment as to its conformity
with the standards of article XXIV must await a
study of the rates of this tariff when it has been
completed and laid before the Contracting
Parties; we believe this must be well in advance
of the end of the fii'st stage of the transitional
period when the first changes in external tariffs
are scheduled to take place. It is difficult to see
how the Contracting Parties could endorse any
mathematical formula in this connection ; a proper
judgment should depend on an item-by-item
evaluation of the impact of the new common tariff.
Because of the time this will require, as well as the
need for negotiations concerning bound rates un-
der article XXIV, paragraph 6, it is our earnest
hope the members of the proposed community will
make available a suggested common tariff as soon
as possible.

An area of particular interest to us is that com-
prising the agricultural provisions of the treaty.
We believe the provision in the treaty for the de-
velopment of a common agricultural policy could
promote the development over the longer term of
sound agriculture in the area. What is done under

this heading will clearly have an important effect
on the fulfillment of the objectives of the treaty j
as well as on the trade interests of many Contract- 1
ing Parties. We are, however, concerned about a
transitional system of long-term agreements and
minimum prices. Such a system could set an un-
fortunate pattern for future trade in agricultural I
goods. It is essential that it be administered with
due regard for the interests of third countries;
otherwise it could do serious damage to the trading
interests of other Contracting Parties. The pro-
visions in the Common Market Treaty on this
subject raise a number of questions in this connec-
tion on which clarification will be required.

We are also not very certain as to the meaning of
the provisions of the treaty concerning quantita-
tive restrictions maintained for balance-of-pay-
ments reasons. Here, too, clarification will be nec-
essary on a number of points.

The implications of the provisions of the treaty
concerning overseas territories are among the most j
difficult to determine. Wliile we are sympathetic I
with the general purposes of the six countries in
respect to contributing to the development of these
areas, the specific provisions concerning trade
raise questions in relation to the impact on the
trade of many Contracting Parties.

This is not an exhaustive list of the concerns we
may have with particular provisions of the treaty.
All these questions will have to be considered in
our general review. In this connection we note
with interest and appreciation the recognition by
the member states that their obligations imder pre-
existing international conventions are not affected
by the treaty. We are confident that this body,
which has already in the past proved its value to
the trading nations of the world, will again show
its worth as a framework in which solutions to
these and other problems can be found in the in-
terests of all.

The procedures on which we agree for further
consideration of the common market should be
such as to safeguard the interests of both non-
members and members of the proposed commu-
nity and contribute to the strength of the multi-
lateral trading system. These procedures should
provide an opportunity for the Contracting Par-
ties to become thoroughly informed on all aspects
of the problem in order that they may be dealt
with constructively.

864

Department of Slate Bulletin

Developments in Hungary
October 1956-February 1957

D.S./U.N. press release 2669 dated May 2

Henry Cabot Lodge, the Permanent Eepresenta-
tive of the United States to the United Nations,
transmitted on May 2 to the Secretary-General
of the United Nations, Dag Hammarskjold, a
report ^ of developments in Hungary from Oc-
tober 23, 1956, to February 20, 1957, as observed
by or reported to 7-epresentatives of the U.S. Gov-
e7'nment. The report teas prepared as a factual
account of developments in Hungary during that
period and is being sent to the Special U.N. Gam-
mittee on the Problem of Hungary ' in accord-
ance with the Secretary-GeneraVs request to gov-
ernments of Januai'y 28, 1957. Following is the
text of Mr. Lodge's letter:

Pursuant to the request of the Special Com-
mittee on the Problem of Hungary, ti-ansmitted
by your note PO 210 of January 28, 1957, 1 have
the honor to transmit herewith on instructions
from the United States Government ten copies of
a report on developments in Hungary from Oc-
tober 23, 1956 to February 20, 1957, as observed
by or reported to representatives of the United
States Government. The report was prepared as
a factual account of developments in Hungary
during that period. From the developments de-
scribed in detail in the report, the United States
Government draws the f ollowmg conclusions :

( 1 ) The Hungarian Revolution, which occurred
on October 23-24, 1956, was a revolution, by defi-
nition. The population rose and attempted to
change the government by foi"ce. The term "coun-
ter-revolution," used by the present rulers of
Hungary, has no true meaning in fact, and may
be considered purely a propaganda slogan. The
only intelligible definition of the term is "a revo-
lution against a revolution." But there was no
revolution in Hungary immediately prior to Oc-
tober 23, 1956; in fact, there had been none for
many years. Neither the events following the
invasion of Hungary in 1945, nor the acquisition
of power by the Hungarian Workers' (Commu-
nist) Party in 1948, fit the accepted definition of
the word revolution inasmuch as the post-World
War II political system was subverted by Soviet
agents with the support of the Soviet Ai-my.

' Not released.

° For background, see Bulletin of Jan. 28, 1957, p. 138.

(2) Within less than twenty-four hours after
the outbreak of the Hungarian Revolution, the
prerevolutionary regime was reduced to a position
where it did not have the power, with the re-
sources at its own disposal, to maintain itself; and
the revolutionary masses did have the power to
overcome any resistance that could be offei'ed by
the so-called government or its agencies. This
is attested to by numerous impartial observers
then in Budapest, and it is further demonstrated
by the fact that within a few hours the "govern-
ment" requested aid from the Soviet Army.

(3) From October 25 to approximately No-
vember 10, the situation can most accurately be
described as war rather than revolution. The
methods used by Soviet forces and their Hunga-
rian collaborators to crush the resistance of the
Hungarian people were those used in war. They
included direct military action, with attendant
slaughter and physical destruction, mass arrests,
deportations of Hungarian citizens to the
U.S.S.R., and elaborate efforts to deceive the
Hungarians and the world by fraudulent "nego-
tiations." Numerous witnesses have confirmed
the use of all these methods. During this period,
except for a brief interval of some three or four
days between October 31 and November 3, almost
continuous military action took place. This mili-
tary action involved conflict between the armed
forces of one nation — in overwhelming superior-
ity potentially during the entire period, and ac-
tually from November 4 on — and the people of
another nation, people poorly armed and organ-
ized, but effectively united against the enemy.

(4) There is no doubt that the Hungarian peo-
ple were effectively united. Only a very small
percentage of the Hungarian population sup-
ported the Soviet armed forces and these were
primarily Govermnent and Party personalities
and political police units. Many observers who
had first-hand knowledge of developments have
testified to this fact.

(5) The effective unity of the Hungarian peo-
ple was further reflected in the action taken by
the Soviet Union in Hungary. The most con-
vincing proof of Hungarian unity, and of the
strengtli and fervor of the aspiration for freedom
on the part of a unified people, was that a power-
ful, mechanized foreign army was recjuired to
crush the resistance of a poorly armed and poorly
organized population of a small comitry. If such

May 17, 1957

865

force had not been considered necessary, it would
not have been used. Further evidence of the
strength and breadth of national resistance is to
be found in the length of time required to crush
the resistance. That steady fighting persisted in
Budapest for some two weeks, after November 4
against impossible odds, is adequate proof.
When a people is prepared to die by thousands
in a practically hopeless cause, their sacrifice can-
not be explained away as a superficial phenome-
non carried out by a minority of "reactionary
elements" and "foreign interventionists." With
the heaviest damage from Soviet artillery in-
flicted on workers' districts, the "laboring class"
can scarcely be said to have supported the in-
vaders. Moreover, the strength and depth of pop-
ular resentment against Soviet domination are
demonstrated by the fact that nearly 200,000
Hungarians have fled to an unknown life
abroad rather than remain in a Hungary under
Soviet domination.

(6) It is clear what the Hungarian people
wanted. They wanted freedom to choose their
own government and freedom from the presence
of foreign troops and foreign agents. The}' also
wanted satisfaction of those other related de-
mands which appeared over and over again in
printed appeals of student and worker groups,
which were broadcast over free radios, and re-
peated to representatives of friendly foreign mis-
sions and the foreign press. To judge by the pop-
ular demands and by the popular support given to
the workers' council movement, a national, demo-
cratic, multi-party government resting on popu-
lar elections, somewhat similar to Western Euro-
pean democracy but more socialist in character
and neutral in international politics, appears to
be what the people were willing to die for. No
evidence exists that more than a minute and en-
tirely inconsequential number of individuals had
any desire to restore the political and social sti'uc-
ture of pre- World War II Hungary.

(7) The Soviet intervention was an outright
military attack, opposed by the Hungarian peo-
ple. Such an attack was unnecessary to "pre-
serve order" — in fact, during the brief interval
when Soviet troops evacuated Budapest at the end
of October, order was being restored with sur-
prising rapidity. There was no active fighting
on any appreciable scale when Soviet troops were
not in Budapest. The Soviet contention that
there was an organized "white terror" is another
propaganda device. Isolated acts of reprisal
against Hungarian police and other officials who,
in serving as agents of a foreign power, had prac-
ticed acts of sadistic cruelty against their own
people are understandable in the circumstances.

(8) The Soviet intervention was imperialist by
definition, for a national opposition movement
was crushed by foreign armed force and a puppet
government installed which represented the in-
terests of the alien occupying power rather than
those of the people. The appeal for Soviet troop
intervention, allegedly under the "terms of the
Warsaw Pact," was sheer subterfuge. This so-
called appeal was made by individuals whose poli-
cies and personalities were at that moment being
repudiated by the Hungarian people, individuals
who, since they had come to power through sub-
version and force, did not represent the Hun- j
garian people.

(9) The present Hungarian regime has no
popular support. This is evident from the fact
that its policies have been in direct opposition to
what the Hungarian people expressed as their
major objectives during the revolt. Moreover,
the present regime was installed by and continues
to exist and to function solely because of the con-
tinued presence of Soviet armed forces.

These are conclusions that emerge from the
United States Government's report. They prove
that Soviet Communism is not only undemocratic,
but oppressive and cruel. They prove further
that the methods it used to suppress Hungarian
independence were monstrous in the extreme.

866

Department of Slate Bulletin

TREATY INFORMATION

Protocol With Japan SuppEementing
Income Tax Convention

S. Exec. K, 85th Cong., 1st sess.
President's Transmittal Message

The White House, April 29, 1957.

To the Senate of the United States:

With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
the protocol between the United States and Japan,
signed at Tokj'o on March 23, 1957, supplement-
ing the convention of April 16, 1954,^ for the
avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes on income.

I transmit also, for the information of the Sen-
ate, the report by the Secretary of State with
respect to the protocol.

DwiGHT D. Eisenhower.

(Enclosures: (1) Report by the Secretary of State;
(2) supplementary income-tax protocol with Japan, signed
March 23, 1957.)

Report of the Secretary of State

Depabtment of State,
'Washington, Apnl 18, 1957.

The President,

The White House:

The undersigned, the Secretary of State, has
the honor to submit to the President, with a view
to its transmission to the Senate to receive the
advice and consent of that body to ratification, if
the President approve thereof, the protocol be-
tween the United States and Japan, signed at
Tokyo on March 23, 1957, supplementing the con-
vention of April 16, 1954, for the avoidance of
double taxation and the prevention of fiscal
evasion with respect to taxes on income.

As in the case of the income-tax convention of
1954 (S. Ex. D, 83d Cong., 2d sess.; Treaties and
Other International Acts Series 3176, 6 U. S. T.

' Bulletin of May 3, 1954, p. 692.
May 27, 1957

149) , the supplementary protocol was formulated
as a result of technical discussions between officials
of this Government and officials of the Govern-
ment of Japan. The Department of State and the
Department of the Treasury cooperated in the
negotiation of the supplementary protocol. It has
the approval of both Departments.

The protocol has a single substantive article of
two paragraphs. It is provided in paragraph (1)
that the Export-Import Bank of Japan shall be
exempt from United States tax with respect to in-
terest on loans or investments received by such
bank from sources within the United States. It
is provided reciprocally in paragraph (2) that the
Export-Import Bank of Washington shall be
exempt from Japanese tax with respect to interest
on loans or investments received by such bank
from sources within Japan.

The Department of the Treasury, in recom-
mending that the protocol be signed and trans-
mitted to the Senate for advice and consent to
ratification, submitted a memorandum presenting
pertinent background information. That memo-
randum reads as follows:

The Japanese Government has created an Elxport-
Import Bank of Japan to promote the purchase of Jap-
anese goods which is patterned after the Export-Import
Bank of Washington. Under the existing Federal income-
tax law, the Export-Import Bank of Japan, although
wholly owned by the Japanese Government, is subject to
tax on any income that it may derive from sources within
the United States. Under the income-tax law of Japan,
the Export-Import Bank of Washington is exempt from
tax, but only on the basis of reciprocity. Accordingly, the
failure of the United States to grant exemption to the
Japanese bank threatens to interfere with the functioning
of the Export-Import Bank of Washington. The imposi-
tion of a Japanese tax on the interest it derives from
Japanese borrowers would either diminish the yield to
the Export-Import Bank on its loans to the buyers of
American products, or it would increase the interest cost
of such foreign borrowers. Either result would reduce
the effectiveness of the Export-Import Bank of Washing-
ton in achieving the objectives for which it was created.
The proposed protocol to the existing income-tax con-
vention between Japan and the United States Is designed
to remedy this situation by providing that each country
shall grant tax exemption to the Export-Import Bank of
the other country.

It is understood that no loans have been made by the
Export-Import Bank of Japan to United States importers
of Japanese goods and, hence, adoption of the proposed
agreement would not have any adver.se effect on United
States revenues. On the other hand, substantial pur-
chases by Japanese firms from United States producers

867

have been held in abeyance because of the absence of
reciprocal tax exemption on the interest earnings of the
two banks.

Article II of the protocol provides that the
protocol shall enter into force on the date on which
the two Governments exchange written notifica-
tions of ratification or approval thereof, and shall
be effective with respect to interest received on
and after January 1 of the calendar year in which
the protocol enters into force. It is provided fur-
ther that the protocol shall continue in force as
long as the aforesaid convention of April 16, 1954,
remains effective unless the protocol is terminated
earlier by a 6 months' written notice of termina-
tion given by either Government to the other
Government.

Eespectfully submitted.

John Foster Dulles.

(Enclosure : Supplementary income-tax protocol with
Japan, signed March 23, 1957.)

Protocol Supplementing the Convention Between
the United States of America and Japan for the
Avoidance of Double Taxation and the Prevention
of Fiscal Evasion With Respect to Taxes on Income

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

Desiring to conclude a Protocol supplementing the Con-
vention for the avoidance of double taxation and the pre-
vention of fiscal evasion with respect to taxes on income
signed at Washington, on April 16, 1954,

Have accordingly appointed their respective representa-
tives for this purpose, who have agreed as follows :

Done in duplicate, in the English and Japanese lan-
guages, at Tokyo this twenty-third day of March, 1957.

For the Government of the
United States of America :
Douglas MacAethub II

For the Government
of Japan :

NOBUSUKE KISHI

Current Actions

MULTILATERAL

Postal Services

Universal postal 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
2S00.
Ratification deposited: Nicaragna, March 28, 1957.

Sugar

International sugar agreement. Done at London under
date of October 1, 1953. Entered into force May 5, 1954.
TIAS 3177.
Accession deposited: Panama, March 1, 1957.

Trade and Commerce

International convention to facilitate the importation of
commercial samples and advertising material. Dated
at Geneva November 7, 1952. Entered into force No-
vember 20, 1955.'

Accession deposited: New Zealand, April 19, 1957 (ap-
plicable to the Cook Islands (including Nine), the
Tokelau Islands, and the Trust Territory of Western
Samoa).

Weather

Convention of the World Meteorological Organization.
Done at Washington October 11, 1947. Entered into
force March 23. 1950. TIAS 2052.
Ratification deposited: Chile, May 9, 1957.
Accession deposited: Ghana, May 6, 1957.

(1) The Export-Import Bank of Japan shall be exempt
from tax by the United States with respect to Interest on
loans or investments received by such Bank from sources
within the United States.

(2) The Export-Import Bank of Washington shall be
exempt from tax by Japan with respect to interest on
loans or investments received by such Bank from sources
within Japan.

II

(1) The present Protocol shall enter into force on the
date of an exchange between the two Governments of
written notifications of ratification or approval thereof,
and shall be effective with respect to interest received
on and after the first day of Januai-y of the calendar year
in which it enters into force.

(2) The present Protocol shall continue in force as long
as the aforesaid Convention of April 16, 1954 remains
effective, unless it is terminated earlier by a six months'
written notice of termination given by cither Govern-
ment to the other Government.

868

BILATERAL

Colombia

Agreement supplementing the agi'ieultural commodities
agreements of June 23 and December 20, 1955 (TIAS
3262 and 3448). Effecte<l by exchange of notes at
Bogota April 16, 19.57. Entered into force April 16,
1957.

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assi.stance Act of
1954, as amended ( 68 Stat. 454, 455 ; 69 Stat. 44. 721 ) ,
and memorandum of understanding. Signed at BogotA
April 16, 1957. Entered into force April 16, 1957.

Luxembourg

Agrcenu'Mt amending annex B of the mutual defense
assistance agreement of January 27, 1950 (TI.VS 2014).
Effected by exchange of notes at Luxembourg April 15
and 25, 1957. lOntered into force April 25, 1957.

Peru

Agreement amending the Army mission agreement of Sep-

' Not in force for the United States.

Department of State Bulletin

tember 6, lOSC (TIAS 3G30). Effected by exchange of
notes at Lima April S and 24, 1957. Entered into force
April 24, 1057.

Syria

Agreement amending the air transport agreement of April
28, li)47 (TIAS 3285). Effected by exchange of notes
at Damascu.s October 22, l'J56, and AprU 30, 1957. En-
tered into force April 30, 1957.

DEPARTMENT AND FOREIGN SERVICE

Confirmations

The Senate on May 8 confirmed Charles E. Bohlen to
be Ambassador to the Philippines. (For biographic de-
tails, see press relea.se 169 dated March 22.)

The Senate on May 9 confirmed Scott McLeod to be
Ambassador to Ireland. (For biographic details, see
press release 199 dated April 9.)

The Senate on May 9 confirmed Henry J. Taylor to be
Ambassador to Switzerland. ( B^or biographic details, see
press release 211 dated April 12.)

Resignations

Robert D. Coe as Ambassador to Denmark, effective
May 6.

Designations

John H. Burns as Executive Director, Bureau of
European Affairs, effective May 15.

PUBLICATIONS

Recent Releases

For sale by the Superintendent of Documents, U.S. Oov-
ernment Printing Office, Washington 23, I). C. Address
requests direct to the Suverintendcnt of Uncuments, ex-
cept in the case of free publications, which may he ob-
tained from the Department of State.

UNESCO: The First Nine Years— A Report of the Fifth
National Conference of the U.S. National Commission
for the United Nations Educational, Scientific and Cul-
tural Organization. Pub. 6403. International Organiza-
zatlon and Conference Series IV, UNESCO 37. 87 pp.
Limited distribution.

A report of the Fifth National Conference of the U.S.
National Commission for UNESCO, held in Cincinnati,
Ohio, on November 3-5, 1955.

A Case History of Communist Penetration — Guatemala.

Pub. 64(j5. Inter-Americau Series 52. xi, 73 pp. 30(f.

A report on the attempt of international communism to
get a foothold in the Western Hemisphere by gaining con-
trol of the political institutions of Guatemala.

The International Atomic Energy Agency. Pub. 6477.
luternationiil Organization and Conference Series I, 33.
12 pp. 15^.

A pamphlet containing information on the establishment
and activities of the International Atomic Euergj' Agency.

Mutual Defense Assistance. TIAS A-3648. 3 pp. 5^.

Agreement between the United States of America and
Norway, amending annex C of agreement of January 27,
1950, as amended. Exchange of notes — Dated at Oslo
November 15 and 23, 1955. Entered into force Novem-
ber 23, 1955.

International Wheat Agreement, 1956. TIAS 3709. 117
pp. 500.

Agreement between the United States of America and
other governments. Formulated at the United Nations
Wheat Conference April 25, 1956 — Open for signature at
Washington through May 18, 1956.

Guaranty of Private Investments. TIAS 3715. 5 pp. 5#.

Agreement between the United States of America and
Luxembourg. Exchange of notes — Signed at Luxembourg
Novemlier 26 and December 7, 1956. Entered into force
December 7, 1956.

Defense of Iceland Pursuant to North Atlantic Treaty.
TIAS 3716. 5 pp. 50.

Agreement between the United States of America and
Iceland. Exchanges of notes — Signed at Reylijavik De-
cember 6, 1956. Entered into force December 6, 1956.

German External Debts. TIAS 3717. 5 pp. 5#.

Agreement between the United States of America and
other governments, amending administrative agreement
of December 1, 1954 — Signed at Bonn November 30, 1056.
Entered into force November 30, 1956.

Surplus Agricultural Commodities. TIAS 3718. 4 pp. 5^.

Agreement between the United States of America and
China, amending article I, paragraph 1, of agreement of
August 14, 1956. Exchange of notes — Signed at Taipei
October 5 and 12, 1956. Entered into force October 12,
1956.

Air Transport Services. TIAS 3719. 2 pp. 54.

Agreement between the United States of America and
the United Kingdom of Great Britain and Northern Ire-
land, amending agreement of February 11, 1946, as
amended. Exchange of notes — Signed at Washington De-
cember 2 and 28, 1956. Entered into force December 28,
1956.

United States Navy Medical Research Center at Taipei,
Taiwan. TIAS 3720. 7 pp. 10^.

Agreement between the United States of America and
China, amending agreement of October 14, 1955. Ex-
change of notes — Signed at Taipei December 27, 1956.
Entered into force December 27, 1956.

Defense — Offshore Procurement Program.

3 pp. 50.

TIAS 3721.

Agreement between the United States of America and
Spain, amending agreement of July 30, 1954, as amended.
Exchange of notes — Signed at Madrid December 21 and
27, 1056. Entered into force December 27, 1956.

Surplus Agricultural Commodities. TIAS 3722. 3 pp. 5^.

May 27, 1957

869

Agreement between the United States of America and
Thailand, amending agreement of June 21, 1955. Ex-
change of notes — Signed at Bangkok December 14, 1956.
Entered into force December 14, 1956.

Special Economic Assistance. TIAS 3723. 6 pp. 54.

Agreement between the United States of America and
Jordan. Signed at Amman June 17, 1954. Entered into
force June 17, 1954.

Special Economic Assistance. TIAS 3724. 2 pp. 5^.

Agreement between the United States of America and
Jordan, amending agreement of June 17, 1954. Signed
at Amman March 17, 1956. Entered into force March
17, 1956.

Surplus Agricultural Commodities. TIAS 3725. 21
pp. 150.

Agreement, with memorandum of understanding, and ex-
changes of notes between the United States of America
and Brazil — Signed at Washington December 31, 1956.
Entered into force December 31, 1956.

Technical Cooperation— Jordan Program. TIAS 3726.
2 pp. 50.

Agreement between the United States of America and
Jordan, amending agreement of February 12, 1952, as
amended. Signed at Amman December 7, 1954. Entered
into force December 7, 1954.

Bahamas Long Range Proving Ground — Civil Air Serv-
ices Within the Bahamas, Turks, and Caicos Islands and
Jamaica. TIAS 3727. 5 pp. 5^.

Agreement between the United States of America and
the United Kingdom of Great Britain and Northern Ire-
land. Exchange of notes — Signed at Washington Decem-
ber 6, 1956, and January 4, 1957. Entered into force
January 4, 1957.

Air Force Mission to Haiti. TIAS 3728. 3 pp. 5^.

Agreement between the United States of America and
Haiti, extending agreement of January 4, 1949, as ex-
tended. Exchange of notes — Signed at Washington De-
cember 3, 1956, and January 7, 1957. Entered into force
January 7, 1957 ; operative retroactively January 4, 1957.

Financial Arrangements for Furnishing Certain Supplies
and Services to Naval Vessels. TIAS 3729. 4 pp. 5^.

Agreement between the United States of America and
Australia. Exchange of notes — Signed at Canberra De-
cember 19 and 31, 1956. Entered into force January 26,
1957.

Mutual Defense Assistance — Disposition of Equipment
and Materials. TIAS 3730. 5 pp. 5^.

Arrangement between the United States of America and
Chile. Exchange of notes — Signed at Santiago Novem-
ber 30 and December 28, 1956. Entered into force De-
cember 28, 1956.

Mutual Defense Assistance — Loan of Vessels to Brazil.
TIAS 3731. 5 pp. 50.

Agreement between the United States of America and
Brazil. Exchange of notes — Signed at Washington Jan-
uary 12 and 16, 1957. Entered into force January 16,
1957.

Defense — Maintenance of Haines-Fairbanks Pipeline.
TIAS 3732. 3 pp. 50.

Agreement between the United States of America and
Canada. Exchange of notes— Signed at Ottawa January
16 and 17, 1907. Entered into force January 17, 1957.

Surplus Agricultural Commodities. TIAS 3733. 2 pp. 5i.

Agreement between the United States of America and
the Republic of Korea, amending agreement of March 13,

1956. Exchange of notes — Signed at Seoul January 7,

1957. Entered into force January 7, 1957 ; operative
retroactively March 13, 1956.

Air Force Mission to Chile. TIAS 3734. 3 pp. 54.

Agreement between the United States of America and
Chile, extending agreement of February 15, 1951, as
amended and extended. Exchange of notes — Signed at
Washington December 28, 1956, and January 17, 1957.
Entered into force January 17, 1957.

Surplus Agricultural Commodities. TIAS 3735. 2 pp. 5^.

Agreement between the United States of America and
Yugoslavia, amending agreement of November 3, 1956.
Exchange of notes — Signed at Washington January 23
and 24, 1957. Entered into force January 24, 1957.

Certificates of Airworthiness for Imported Aircraft.
TIAS 3736. 8 pp. 100.

Agreement between the United States of America and
Prance. Exchange of notes— Signed at Paris August 6
and December 14, 1956. Entered into force December
14, 1956.

United States Educational Commission in Turkey.
TIAS 3737. 5 pp. 50.

Agreement between the United States of America and
Turkey, modifying agreement of December 27, 1949. Ex-
change of notes — Signed at Ankara January 8, 1957.
Entered into force January 8, 1957.

Atomic Energy — Cooperation for Civil Uses. TIAS 3738.
22 pp. 150.

Agreement between the United States of America and
Belgium, amending agreement of June 15, 1955. Signed
at Washington July 12, 1956. Entered into force Jan-
uary 18, 1957.

Whaling — Amendments to the Schedule to the Interna-
tional Whaling Convention signed at Washington on De-
cember 2, 1946. TIAS 3739. 2 pp. 5^.

Adopted at the eighth meeting of the International Whal-
ing Commission, London, July 16-20, 1956. Entered into
force November 1, 1956.

United States Educational Foundation in Thailand.
TIAS 3740. 4 pp. 50.

Agreement between the United States of America and
Thailand, amending agreement of July 1, 1950, as
amended. Exchange of notes — Signed at Bangkok Jan-
uary 21, 1957. Entered into force January 21, 1957.

Surplus Agricultural Commodities. TIAS 3741. 2 pp. 5^.

Agreement between the United States of America and
Greece, supplementing agreement of August 8, 1956.
Signed at Athens January 21, 1957. Entered Into force
January 21, 1957.

Surplus Agricultural Commodities. TIAS 3742. 5 pp. 5<f.

Agreement between the United States of America and
the Republic of Korea. Exchange of notes — Signed at
Washington January 30, 1957. Entered Into force Jan-
uary 30, 1957.

Defense — Establishment of Guided Missile Station on
Island of Fernando de Noronha. TIAS 3744. 4 pp. 5<*.

Agreement between the United States of America and
Brazil. Exchange of notes — Signed at Rio de Janeiro
January 21, 1957. Entered into force January 21, 1057.

870

Department of State Bulletin

May 27, 1957

Index

Vol. XXXVI, No. 935

American Republics

The Element (if Faith in the Conduct of Foreign

Affairs (Kubottom) 855

Widening Horizons for Women in Latin America

(Stewart) 860

Aviation. Air Agreement With Syria Amended . . 846

China. U.S. Air Force Missile Unit To Be Stationed
on Taiwan 854

Congress, The

Protocol With Japan Supplementing Income Tax

Convention (Eisenhower, Dulles) 867

Visit of President Ngo Dinh Diem of Free Viet-Nam

(Ngo Dinh Diem, Eisenhower) 851

Department and Foreign Service

Confirmations (Bohlen, McLeod, Taylor) .... 869

Designations (Burns) 869

Resignations (Coe) 869

Economic Aflfairs

The Common Market and the GATT (Corse) . . 863
Protocol With Japan Supplementing Income Tax

Convention (Eisenhower, Dulles) 867

Egypt. Suez Canal Users Reserve Rights Under

Convention of 1888 (text of communique) . . . 845

Europe. The Common Market and the GATT

(Corse) 863

Greece. Ambassador Richards' Mission to the

Middle East (Richards, texts of communiques) . 841

Haiti. United States Recognizes New Government
of Haiti 859

Hungary

Developments in Hungary October 1956-February

1957 (Lodge) 865

United States Replies to Hungary on Postal Cancel-
lation Stamp (texts of notes) 849

International Organizations and Conferences. The

Common Market and the G.\TT (Corse) ... 863

Japan. Protocol With Japan Supplementing In-
come Tax Convention (Eisenhower, Dulles) . . 867

Libya. Ambassador Richards' Mission to the

Middle East (Richards, texts of communiques) . 841

Middle East

Ambassador Richards' Mission to the Middle East

(Richards, texts of communiques) 841

Suez Canal Users Reserve Rights Under Convention
of 1888 (text of communique) 845

Military AEFairs. U.S. Air Force Missile Unit To

Be Stationed on Taiwan 854

Morocco. Ambassador Richards' Mission to the

Middle East (Richards, texts of communiques) . 841

Mutual Security

Foreign Policy and Foreign Aid (Eisenhower) . . 846
Tasks Ahead for the Free World (Bowie) . . . 835

North Atlantic Treaty Organization. NATO Min-
isterial Council Meets at Bonn (Dulles, text of
communique) 839

Presidential Documents

Foreign Policy and Foreign Aid 846

Protocol With Japan Supplementing Income Tax
Convention 867

Visit of President Ngo Dinh Diem of Free Viet-
Nam 851

Publications. Recent Releases 869

Rumania. Eightieth Anniversary of Rumanian In-
dependence 850

Syria. Air Agreement With Syria Amended . . 846

Treaty Information

Air Agreement With Syria Amended 846

Current Actions 868

Protocol With Japan Supplementing Income Tax

Convention (Eisenhower, Dulles) 867

Tunisia. Ambassador Richards' Mission to the

Middle East (Richards, texts of communiques) . 841

U.S.S.R. Tasks Ahead for the Free World

(Bowie) 835

United Nations. Developments in Hungary Octo-
ber 1956-February 1957 (Lodge) 865

Viet-Nam. Visit of President Ngo Dinh Diem of

Free Viet-Nam 851

Name Index

Bohlen, Charles E 869

Bowie, Roltert R 835

Burns, John H 869

Coe, Robert D 869

Corse, Carl D 863

Dulles, Secretary 839,867

Eisenhower, President 846, 851, 867

Lodge, Henry Cabot 865

aicLeod, Scott 869

Ngo Dinh Diem, President 851

Richards, James P 841

Rubottom, Roy R., Jr 855

Stewart, C. Allan 860

Taylor, Henry J 869

Check List of Department of State
Press Releases: May 6-12

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

Press releaises issued prior to May 6 which appear
in this issue of the Bulletin are Nos. 254 of AprU
29 and 262 of May 3.

Sabject

Reply to Czech note on U.S. air attach^.

Amendment to air transport agreement
with Syria.

U.S.-Libya joint communique: Rich-
ards mission.

NATO parliamentarians to visit U.S.

Reduction in passport fees.

Rubottom : "The Element of Faith in
the Conduct of Foreign Affairs."

Program for visit of President Ngo
Dinh Diem.

U.S.-Tunisia joint communique: Rich-
ards mission.

EURATOM report published.

Recognition of Government of Haiti.

NATO communique.

Dulles : arrival statement.

Inter-American Committee of Presi-
dential Representatives.

Richards : arrival statement.

80th anniversary of Rumanian inde-
pendence.

U.S.-Morocco joint communique : Rich-
ards mission.

Richards : radio and TV report.

l>uUes : testimony on IAEA.

Murphy : National Council of Catholic
Men.

Richards : news conference.

*Not printed.

fHeld for a later issue of the BtJLLETiN.

No.

Date

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5/7

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5/7

t273
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275
276

*277

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5/7
5/7
5/8

278
279

5/8
5/9

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5/9

281

t282
t283

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OFFICIAL BUSINESS

The International

Atomic Energy Agency

On December 8, 1953, before the General Assembly of the
United Nations, President Dwight D. Eisenhower proposed that a
world organization be formed to promote the peaceful uses of
nuclear energy. This proposal received an almost unanimous
favorable response from all parts of the world.

On September 20, 1956, representatives of 81 nations — the
largest number ever to meet for an international conference —
assembled at U.N. headquarters in New York. Seventy of these
nations, on October 26, signed the statute of the International
Atomic Energy Agency, an organization dedicated to the promo-
tion of the peaceful uses of the atom. Ten more have since signed.

As soon as 18 nations (including at least 3 of the principal atomic
powers) have ratified the statute in accordance with their con-
stitutional procedures, the agency will come into being.

The International Atoynic Energy Agency, a 12-page pamphlet,
describes the background of the agency, what it will do, its finan-
cial provisions, safeguards against diversion of assistance to mili-
tary use, and protection of health and safety. The "Vocabulary
of Atomic Energy" that prefaces the pamphlet defines some of the
important terms in the atomic energy field.

Copies of this publication may be purchased from the Superin-
tendent of Documents, U.S. Government Printing Office, Wash-
ington 25, D.C., for 15 cents each.

Publication 6477

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THE DEPARTMENT OF STATE

Vol. XXXVI, No. 936

June 3, 1957

ICiAl

EKLY PrrnRD

NATIONAL SECURITi' AND THE COST OF WAGING

PEACE • Excerpt From the Report by President Eisenhower

to the American People on the Cost of Their Government . . 875

THE INTERNATIONAL ATOIMIC ENERGY AGENCY

Statement by Secretary Dulles 878

Statement by Ambassador James J. Wadsworth 880

Address by Assistant Secretary Wilcox 887

SECRETARY DULLES' NEWS CONFERENCE OF

MAY 14 894

TED STATES
EiGN POLICY

For index see inside back cover

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 936 • Publication 6499
June 3, 1957

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Note: Contents of this pul)llcatlon are not
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National Security and tlie Cost of Waging Peace

EXCERPT FROM THE REPORT BY PRESIDENT EISENHOWER TO THE AMERICAN PEOPLE
ON THE COST OF THEIR GOVERNMENT'

Turn with me now to the largest item in the
budget — the defense of our country. There is
where most of your tax dollars go.

As we survey the world in wliicli we live, the
first great concern of all of us is to make sure of
the defense of our homes, our country, and our
way of life. The Communists have again and
again announced their purpose of promoting
revolution and of commvmizing the world by
whatever means. It is important, and surely
prudent, for us to understand the military
strength the Commimists maintain to help them
achieve their purposes.

Now what is that strength today ?

Without counting the Chinese Communists, the
Soviets have the world's largest army. They have
many times the number of submarines that Ger-
many had when World War II began. They have
atomic weapons and rockets and missiles. They
have a large and growing air strength. They are
competent in military technology and research.
And all this is directed by a despotism which is
fully capable of the supreme folly — that of un-
leashing these powerful forces if it should ever
believe that it could, without destroying itself,
succeed in destroying the free world.

One important purpose of our military arrange-
ments is to convince others that, if they start a
general conflict, they cannot escape their own
destruction.

As I have said, the national defense item is by
far the largest in our budget, but let us see just
how large it is. The estimate just for our own
military forces and our atomic development,

' Delivered to the Nation over radio and television on
May 14 (White House press release).

together with a small amount for stockpiling
critical and strategic materials, is almost $41
billion. This does not, by any means, equal the
full amount first recommended by our uniformed
services. They wanted some $10 billion more.

But I earnestly believe that this defense budget
represents, in today's world, the proper dividing
line between national danger on the one hand and
excessive expenditure on the other. If it is ma-
terially cut, I believe the coimtry would be taking
a needless gamble. For myself, I have seen un-
wise military cuts before. I have more than once
seen their terrible consequences. I am deter-
mined to do all I can to see that we do not follow
that foolhardy road again.

Even after World War II had illustrated again
the dangers of unpreparedness, our Armed Forces
became so starved and depleted that by 1950 we
liad to withdraw our military strength from South
Korea. That area was then declared to be out-
side our defense perimeter. The tragic results of
that woeful weakness are too close to us to need
recounting now to the families of America. But
I say to you that I shall never agree to any pro-
gram of false economy that would permit us to
incur again that kind of risk to our country and
to the lives of our citizens.

Rising Costs of Defense

Good defense is not cheap defense.

The B-36 bomber, even though built after
World War II, is already outmoded. Each one
cost us about $3i/2 million. Today's B-52 jet
bomber costs $8 million each.

Seven years ago, a fighter plane cost $300,000.
Today, one costs $li/^ million.

A submarine now costs twice as much as it did
7 years ago.

June 3, 1957

875

Atomic eiiergj' costs four times as much as it
did in 1950. Daily, mmiitions grow more com-
plex, more powerful, and more costly.

It is clear that, unless we make some progress
in our persistent efforts to secure an effective
agreement to limit armaments, defense costs will
tend to go up year by year, if we are to keep
Communist forces from outstripping us. Conse-
quently, though our first responsibility is to main-
tain defenses adequate to keep the Nation secure,
we do not want, because of this cost, more military
force than is necessary.

Judgments on the defense budget must reflect
the stem fact that real military power can rest
only on a sound economy. Only with a strong and
thriving economy can we have the strength to
protect our freedom. But since we maintain mili-
tary forces as a matter of self-preservation, we
must not recklessly reduce their power.

This dilemma presents hard decisions. But
they are decisions that must be made by the
President, as he presents his recommendations
to the Congress. To this kind of problem I have
devoted most of my life. I repeat my earnest
belief that the estimate in the budget for our mili-
tary forces, atomic energy, and stockpiling —
amounting to about $41 billion — represents a de-
fense program which is as nearly accurate, in
present circumstances, as is hiunanly possible to
make it.

To this defense total should properly be
added — and will so be in the future — that part of
our mutual security program which supplies arms
and defense support to friendly countries in or-
der to strengthen the military power of the free
world. Expenditures for this purpose will
amount next year to something over $3 billion.

The costs in many of these friendly countries
are low compared to ours ; so this type of aid, even
though moderate in amount, supplements their
own efforts very effectively. This aid helps arm
and maintain overseas :

some five times as many active groimd forces
as the United States possesses;

about twice as many naval combat ships;
and about an equal number of planes.

This aid is also a key factor in maintaining many

of our vital military, naval, and air bases abroad.

"Without tlie military strength that this aid

helps sustain overseas, we shoidd have to add

many more billions to our own defense spending i
and have less security for our total effort. I

Defense expenditures, for our own forces and
our military assistance overseas, together with the
domestic expenditures I have discussed, account
for almost all — in fact, 98 percent — of the budget.

A Moderate Sum for Waging Peace

As we look at the whole range of the budget,
there is only one hope of making the really great
savings that we all want so much. That hope
is to achieve an effective disarmament agreement
with an easing of world tensions, so that the enor-
mous sums we have to spend for our defense can
be drastically reduced.

The savings we can hope to make in domestic
programs are, at best, small by comparison. Of
course, we could save material amounts if, by law,
we abandoned or drastically cut back some of the
larger programs. But in a world knowing real
peace, we could save at least ten times as much in
defense spending. It is to hasten that day, as well
as to enhance our security now, that the budget
provides a moderate sum for waging peace.

This is a mission that military formations can-
not, of themselves, accomplish. The entire free-
world military force merely puts a policeman on
the corner to keep the robber out of our house and
out of our neighborhood. It preserves from de-
stniction what we already have.

But our Communist antagonists are resource-
ful and cunning. Their aggression is not limited
to the use of force or the threat of its use. They
are doing their best to take advantage of poverty ]
and need in the developing nations and so turn ■
them against the free world. Success would en- I
able them to win tlieir long-sought goal of Com-
munist encirclement of our country.

To meet the total threat we, first of all— as I
have pointed out — must sustain our defense
preparations.

But we must do more.

We must wage peace aggressively through
diplomatic efforts, through the economic and
technical assistance part of the mutual security
program, and through worldwide information
activities to help bind the free world more firmly
together. These efforts will cost about $1 billion
next year.

We wage peace on the diplomatic front through
the efforts of the State Department to establish

876

Department of State Bulletin

close ties with every other nation tliat vahies its
independence and tliat recognizes tlie dignity of
man.

We wage peace through the efforts of the
United States Information Service to counteract
the false propaganda spread by the Communists.
We tell the truth about freedom and the rights
of man and seek to win adherents to these con-
cepts.

We wage peace through the mutual security
program in another way. We help some nations
in developing their own economies, so their people
can be stronger partners in the defense of the free
world against communism.

Economic development is, of course, not a prod-
uct for export from the United States or any-
where else. It is a homespun product, the prod-
uct of a people's own work. Our opportunity is
simply this : to help the peoples of tliese develop-
ing lands to help themselves. This we can do
through sound technical assistance and, where nec-
essary and unavailable from other sources,
through loans and, at times, other kinds of finan-
cial aid. Within prudent limits, this practice is
in their and our best interests.

On this subject I hope to talk with you again
next week, but I assure you now that this billion-
dollar item is one of the most important to all of
us in the entire budget.

The Most Important Job in the World

I know that in these efforts to wage peace all
does not always go well. Weaknesses there are
bound to be — troubles and disappointments as
well.

But I never oi'dered a cease-fire in a battle be-
cause some of the ammunition misfired or went
bad, or some commander — including myself — may
have made a mistake. We must always do better,
but we must never stop in our battle for peace. We
must keep everlastingly at this job — today the
most important job in this entire world.

Our defense expenditures are to assure us the

opportunity to wage peace ; our expenditures for
diplomatic work, economic and teclinical assist-
ance, and information services give us the means
to wage peace. Together tliey cost $45 billion —
all but about a billion dollars of this for defense.

The rising costs of defense items account for
more than 80 percent of the increase in next year's
budget. These facts simply reflect the kind of
world in which we are living.

The plain truth is that the price of peace is
high.

That explains wliy taxes are high and why
their further reduction has been delayed. It ex-
plains also why really big cuts in government
spending depend on success in our efforts to wage
peace.

The sacrifices demanded of each of us are great ;
but they are sacrifices of dollars for a peaceful
world, not the sacrifices of our sons, our families,
our homes, and our cities to our own short-
sightedness.

I believe that you are more secure in your
homes tonight because of the effort and money
our Nation has put into these defense and related
security programs. It is almost 4 years since an
American fighting man has been killed in battle
anywhere. Crises, great and small, we have had
and will continue to have. Despite tliem, tliere
has been an overall improvement in the prospects
for keeping an honorable peace.

But I must say this to you: I can see no im-
mediate relaxation of international tensions to
provide the basis now for substantial reductions
in these programs for presei"ving and waging
peace. In fact, the gains we have already made
impel us to press forward with no letup.

If we do press forward — if we courageously
bear these burdens of waging peace — I have every
hope that in God's good time success will crown
our efforts. Then we shall know an easier and a
better peace whose fruits will include a lightening
of the spiritual and the material burdens we now
must bear in order to gain it.

June 3, 1957

877

The International Atomic Energy Agency

STATEMENT BY SECRETARY DULLES'

Three and one-half years ago, on December 8,
1953, President Eisenhower made his plea for
"atoms for peace." ^ Addressing the General As-
sembly of the United Nations the President
proposed a "way by which the miraculous inven-
tiveness of man shall not be dedicated to his death,
but consecrated to his life." To this end, he pro-
posed the creation of an international agency for
jiooling nuclear material and technology to ad-
vance the peaceful uses of atomic energy.

His proposal was a new attack on the problem
of the atom. In 1946, when the United States had
the atomic monopoly, we made the first effort to
bring the atom under control. The Baruch plan
would have stopped the output of nuclear weapons
by putting all nuclear energy under international
control. It was designed to safeguard the peoples
of the world against the holocaust of atomic war.
For 7 years the Soviet Union had blocked any
progi-ess along this line by its refusal to accept
atomic inspection and control. No way had been
found to break the impasse. In this depressed
climate the President's proposal for an atomic
agency for peaceful purposes came as an inspiring
concept. It was acclaimed throughout the world.

In the period since the proposal was made, the
need for such an agency has become even more
manifest. Great progress has been made in using
atomic energy for generating electric power. No
longer is this an experiment. Atomic power
plants are a future certainty. Some are already
being built. The demand for energy is growing
by leaps and bounds. More and more, men's
minds are turning to the use of the atom as a source
of energy.

At the same time people are becoming more
aware of some of the dangers inherent in this

1 Made before the Senate Foreign Relations Committee
on May 10 (press release 282).

2 Bulletin of Dec. 21, 1953, p. 847.

878

progress. Wlien power is produced by nuclear
energy, I understand that the process in current
practice produces weapons-quality material which
could find its way into war arsenals in the absence
of atomic controls and inspection. And such
production also creates waste products which
could imperil health and safety. Today the need
is even more imperative for protection against the
inevitable byproducts of the atomic age.

The statute of the International Atomic Energj'
Agency ^ is designed to fill this need. Its origin is
the proposal of the President. In working out
tlie statute, some 80 nations took part. They
represent every stage of economic development,
every shade of political attitude, and everj' variety
of national culture. Despite the need to reconcile
these varied interests, the statute has kept intact
every element of the President's proposal without
sacrifice of substance or principle.

The fact that so many countries should have
unanimously approved the text of the statute at
the conference in New York last fall is a tribute
to the soundness of the concept. At first the So-
viet Union was negative to these proposals. But
in the face of the world's manifest desire, the So-
viet Union has now shown readiness to participate
in the agency. It even tries to compete with us
for leadership in this effort.

In conceiving and negotiating this treaty, the
United States is faithful to its great tradition of
resourcefully identifying its own self-interest witli
the interest and welfare of all mankind.

I turn now to the more concrete aspects of the
matter.

Advantages of the Agency

What advantage does this agency offer to the '
United States and to other nations?

First, the agency will accelerate the peaceful

» For text, see I'ftirf., Nov. 19, 1956. p. S20.

Department of State Bulletin

development of the atom. The history of atomic
energy makes clear that many men from many
nations have contributed to the stage we have now
reached. A forum such as the agency for the ex-
change of discovery and invention among all na-
tions should result in a dramatic speeding up in
this peaceful atomic development.

Second, the agency will provide an effective
system of safeguards to insure the development of
atomic energy with security.

We must realize that atomic energy materials
and know-how will spread, agency or no agency.

A spread of nuclear technology and facilities is
to our interest. But a rapid and unsupervised
development of nuclear power around the world
raises the specter of nuclear weapons ultimately
becoming quite generally the byproducts of nu-
clear power plants. An effective safeguard system
must be established if this is to be prevented.
These power plants are going to be built. It is just
a question of whether their spread around the
world will or will not be supervised in the com-
mon interest.

No one nation can alone indefinitely police the
spread of nuclear power plants. In our bilateral
agreements we now provide for safeguards, includ-
ing inspection by our own nationals to assure
against improper use of nuclear material. But
tliis is a short-term solution. Sovereign nations
would accept an international system of broad
applicability. But they will not long be content
to have their electric power systems under con-
tinuous supervision by technicians merely serving
another nation. So if we want long-term and safe
foreign markets for our nuclear materials and
technology, we need an international system of
safeguards to assure that our exports do not breed
military dangers.

The safeguard system contained in this treaty is
the same as the American system of safeguards,
the system now contained in our bilateral agree-
ments. No compromise of any substance was made
in regard to safeguards during the treaty nego-
tiations. In fact the system contained in the final
treaty is more comprehensive than that contained
in early drafts of the treaty.

This treaty will give the American system of
safeguards a world standing. With some reason
we can hope that the American system will become
universally accepted. In any event it will be man-
datory for all countries in projects receiving
agency support.

Third, there is the problem of health and safety.
We know that atomic energy involves risks and
dangers if improperly handled. An international
code to protect the health and safety of those in-
creasing numbers of people who work with atomic
energy or live in the environs of nuclear estab-
lishments can best be established and supervised
by this agency.

Fourth, the agency will afford a way of pooling
inadequate manpower resources which otherwise
could be a limiting factor in the peaceful uses of
the atom. Technical personnel is in short supply.
A purely bilateral approach would be a severe
drain on United States skilled manpower. The
agency can be an instrument both for using this
present supply in the most effective way and of
increasing the supply by coordinating training of
new technicians and scientists.

Fifth, the agency can help in moving toward
control of nuclear weapons. We have tried for
many years to reach agreement on this difficult
subject. The sticking point has always been the
issue of controls. In the agency, for the first
time in history, the overwhelming majority of the
nations have agreed on a far-reaching system of
controls and safeguards. We hope that it will
demonstrate the feasibility of controls in a way
that will have a constructive impact on negotia-
tions for the regulation and reduction of arma-
ments.

Sixth, the openness which this system will pro-
mote can be important in preventing the spread
of nuclear weapons, which could seriously impede
arms control. It is quite conceivable that nations
might themselves develop atomic weapons merely
because of suspicion, unjustified in fact, that
neighbors were doing so. Under this treaty de-
velopment of the peaceful atom would take place
in the open, subject to international scrutiny.
Thus, nations will feel less impelled to develop
nuclear weapons out of fear of the unknown.

Finally, international cooperation in a new field
comparable in importance to the industrial revo-
lution can have an effect which will spread far
beyond itself. We are all aware of the difficulties
and obstacles to reaching agreement with the
Soviet Union on any matter. But this agency
provides a beginning of cooperation which could
have a favorable impact on the climate of inter-
national relations. The splitting of the atom
might conceivably lead to a unifying of the now
divided world.

June 3, J 957

879

Obligations of the United States

The obligations which the United States would
undertake as a member of the International
Atomic Energy Agency, under its statute, are
neither numerous nor heavy.

1. The statute does not contemplate that the
agency shall become a give-away organization.
The countries who receive materials and other
atomic needs from it are required to pay a price
that will permit the agency to reimburse the sup-
plier. As for suppliers, the amount of anything
they make available — materials, services, or equip-
ment— is entirely up to them. The agency has
no power to call upon any member to become a
supplier but may only induce it to by offering
satisfactory terms.

2. The United States would be obligated to pay
its share of the administrative expenses of the
agency. Other expenses are to be met out of
other revenues of the agency.

To give you an idea of what this might mean for
the United States, the administrative expenses of
the agency for its first year of operation would
not be expected to exceed $6 million. The maxi-
mum share of this that could be assessed to the
United States would be one-third or $2 million.

3. Just as the agency is barred from being a
give-away organization for handing out the mem-
bers' funds and resources, it cannot be a give-away
organization for atomic secrets. The agency will
not be a distributor of classified information but
only of information on peaceful uses of atomic
energy which is in the open literature or is other-
wise free of any restrictions on access imposed for
reasons of security.

4. The fuel that the agency will distribute will
not be of a kind usable for nuclear weapons. I
understand that extensive processing and refabri-
cation would be needed to convert this fuel into
weapons-grade material or to extract its by-
product, weapons-grade material. No prospective
recipient of fuel from the agency now possesses
the necessary extensive facilities to effect this con-
version or byproduct extraction. And if it were
to acquire them, that could not as a practical
matter be concealed from the agency's notice.

Potential of the Agency

I have already sought to indicate the great po-
tential of this agency — for economic development
of large areas of the world ; for cooperation with

other nations, including the Soviet Union, in ways
which will reduce international tension and pro-
mote the practice of peaceful and constructive
collaboration ; for encouraging peaceful use of the
atom and averting the spread of nuclear military
potential to additional countries; and for giving
the nations experience with a system of interna-
tional safeguards which could build confidence
and further the prospects of safeguarded dis-
armament.

We have proceeded to take the initiative on the
creation of the agency with the blessings of the
Congi-ess. In 1954, although the President had
not yet requested it, the Congress included among
its extensive revisions of the Atomic Energy Act
a provision specifically permitting the United
States to enter into an agreement for cooperation
with an international agency once it came into
existence with appropriate congressional ap-
proval.* Now 80 nations have in effect accepted
our concept. This is a unique development in
diplomatic history. Ratification of this statute
will afford the United States the opportunity to
continue to exercise leadership to help the world,
in the President's words, "out of fear and into
peace."

STATEMENT BY JAMES J. WADSWORTH, MAY 15 ^

I would like to cover some aspects of this treaty
not fully gone into by Secretary Dulles and Chair-
man Strauss.^ Secretary Dulles last Friday dis-
cussed with you the great foreign-policy consid-
erations that hinge on ratification. Chairman
Strains yesterday explained the atomic energy
advantages and the safeguards which we look to
this agency to produce. I would now like to give
you some insights into the process by which this
treaty was hammered out, and then I will be glad
to answer your questions.

I have been working for over 4 years as the
De^juty United States Representative to the
United Nations. During all the international

* For President Eisenhower's statement on signing the
act, see ibid., Sept. 13, 1'JM, p. 305.

' Made before the Senate Foreign Relations Committee
on May 15 (press release 290). Ambassador Wadsworth
is U.S. Representative to the Iaea preparatory commis-
sion.

° Lewis L. Strauss, Chairman of the U.S. Atomic Energy
Commission.

880

DeparlmenI of State Bulletin

conferences in which I have participated, I have
never sensed such an intense interest and such a
strong will for agreement as developed during
these political negotiations on the atoms-for-
peace program. It is somewhat difficult to de-
fine exactly the atmosphere in which we worked
on this project. It was not a long series of agree-
ments couched in generalities. Rather it was a
businesslike negotiation aimed at spelling out pro-
visions for international agreement to permit cer-
tain technical activities around the world. There
was real skepticism about a number of important
points which we overcame only after lengthy
and intensive consultations. I would describe
the atmosphere as one of "determined coopera-
tion." At the finish there was general agreement
tliat the statute represents the soundest, most
logical, and safest way of attaining international
promotion for and supervision of peaceful uses
of atomic energy.

As we run through the important articles of
the treaty, I think you will agree that we were not
outnegotiated. If you compare the United States
draft ^ which was submitted to the 12-nation
working meeting in Washington in February 1956
with the final text of the treaty as agreed upon
last fall, it will be perfectly clear that all of the
original American policies are fully reflected in
the treaty. Of course, some changes were made —
in our judgment a number of improvements came
out of the negotiating process. But as the Secre-
tary of State said the other day,

. . . despite the need to reconcile these varied inter-
ests, the statute has kept intact every element of the
President's proposal without sacrifice of substance or
principle.

Rundown of the Statute

Article I (Establishment of the Agency) and
Article II (Oijectives) are self-explanatory.

Article III — Functions. This article spells
out what the agency is authorized to do. Because
we hope that this agency will be good for the long
pull, it has been given wide scope. In its early
years it certainly will engage only in modest activ-
ities compared to the full scope of its authorized
functions. This is clear from the planning work
that has already taken place in the preparatory
commission in New York during the past few
months. There are a number of factors which

' For text, see Bulletin of Oct. 24, 1955, p. 666.
June 3, 7957

will be at work to limit the scale of agency activ-
ities in the beginning. The basic factor will be the
caution with which this new international venture
will be approached by supplying countries. Po-
tential suppliers will watch tliis young project
develop before assigning to it any large-scale re-
sponsibility for materials handling. One may
say : Well, the United States has already commit-
ted itself to transfer 5,000 kilograms right away
to the agency. But you will recall that the terms
and conditions under which this material is to be
made available to the agency are still to be worked
out. I am sure that the terms and conditions
which we will require will take full account of
the preliminary status of this agency.

I would like to call your attention to article
III-D, which is generally referred to as the
"sovereign rights" clause. The question of sov-
ereign rights is one on which nations are quite
properly very sensitive, and there was a good deal
of concern expressed in many quarters during the
negotiation about the possibility that the opera-
tions of the agency will infringe the rights of na-
tions. I think it is fair to say that we satisfied the
legitimate concerns expressed and succeeded in get-
ting acceptance for language that in no way will
hinder an efficient operation of the safeguards
system.

Article IV — Membership. The statute divides
this problem into two parts — initial members of
the agency (paragraph A of article IV) and other
members (paragraph B). In the first category,
the United States recommended from the begin-
ning a formula which would restrict original mem-
bership to those states "members of the U.N. or
specialized agencies." Four regimes — East Ger-
many, North Korea, North Viet-Nam, and "Outer
Mongolia" — have not achieved membership in any
of these agencies; so the formula automatically
rules them out. At preliminary meetings in
Washington in the spring of 1956, efforts by the
U.S.S.R. to strike out this phrase on the gi-ounds
that membership should be "universal" were easily
defeated.

At this point I might deal briefly with the prob-
lem of Red China. At the 12-nation conference
the Soviet Union tried to have an invitation to the
September conference sent to Red China. This
move was soundly defeated. The Government of
the Republic of China was invited instead, and
this Government is presently engaged in the
process of ratification.

881

In the second category — admission of new
members — there was less controversy. The issue
was whether admissions should be left exclusively
to the general conference or whether the board of
governors should have a role.

Some delegations thought the general confer-
ence should alone admit new members. The
United States insisted that new members should
not be admitted imtil both the board of gover-
nors and the general conference had determined
that the applicant is willing and able to carry out
the obligations of agency membership and with
due consideration to its ability and willingness to
act in accordance with the purposes and prmci-
ples of the United Nations Charter. As you see,
these provisions are part of the statute before you.
The purpose of the reference to obligations of the
U.N. membership is obvious. It is vmder essen-
tially the same criterion as set forth in the U.N.
Charter that Red China has been excluded from
the United Nations, and we feel this criterion
should be applied in the agency.

Article V — General Conference. A basic dif-
ference of opinion developed over the division of
authority between the board of governors and the
general conference. The latter body is composed
of a representative from each member of the
agency. There was an effort to make the general
conference the main policymaking body of the
agency. On the other hand, the U.S., supported
by a majority, argued that on grounds of efficiency
of operation the smaller body, the board of gov-
ernors, meeting frequently, should be given this
authority.

The final language of article V recognizes this
principle, while at the same time giving appro-
priate powers to the conference. For example,
the conference will review and approve (1) the
budget, (2) amendments, and (3) selection of the
director general. It will elect 10 members to the
board of governors. It will also have the author-
ity to discuss any question that falls within the
scope of the statute. The views of the conference
on these latter questions may be presented to the
board of governors in the form of recommenda-
tions.

Article VI — Board of Govenwrs. Debate on
the composition of the board of governors was in-
tensified as it became apparent that it would be
the center of authority. Long and difficult nego-
tiations were required before a solution was found

that all could accept. The United States felt that
those countries having advanced atomic energy
programs should have substantial influence in de-
ciding the agency policy. On the other hand,
there was the view that standard international
practice of allocating seats on the basis of geo-
graphic distribution should be followed. A for-
mula was finally worked out which did take into
consideration the principle of geographic rejjre-
sentation while at the same time recognizing the
legitimate interest and responsibilities of poten-
tial suppliers.

Let me show you how this formula works.

The world is divided into eight areas for pur-
poses of selecting members to the board of gov-
ernors. The chart * shows likely dividing lines be-
tween the areas, although there is no firm under-
standing among the nations concerned as to
exactly where these lines should be. The U.S.
has not taken a position on this question except
that, in cases where a country might be in one or
another geographic area, we think it should de-
cide for itself which area it wishes to be in. For
example, the Philippines might with equal justi-
fication opt for the Far East or Southeast Asia
and Pacific. Finland might be in either Western
or Eastern Europe. However, there are relatively
few such cases.

The statute provides for two major categories
of membership — those designated by the outgo-
ing board of governors and those elected by the
general conference. In the case of the first board
of governore, the preparatory commission carries
out the designating function. Within the desig-
nated group there are four subdivisions :

1. Five members most advanced in the tech-
nology of atomic energy from the world at large.

2. The member most advanced in the technol-
ogy of atomic energy from each of the eight areas
of the world not represented by the first five.

3. Two of the following four producers of
source materials: Belgium, Czechoslovakia, Po-
land, and Portugal.

4. One member as a supplier of technical assist-
ance.

The general conference elects 10 members to
the board of governors for 2-year terms except in
the case of the first board, when 5 of the 10 are to
be elected for 1 year in order to commence a stag-
gered system of terms (similar to the Security

' Not printed.

882

Department of Slate Bulletin

Council). The statute provides that each area of
tlie world, except North America, must be repre-
sented in this group by at least one country. Of
course, in the case of North America there would
be no other members to seek election since the two
countries that comprise the area, the U.S. and
Canada, will undoubtedly be designated by the
board of governors in the first category.

The above is a description of the process for
selecting members of the board as outlined in the
statute. However, on the basis of negotiations
and consultations that have taken place as the
statute was being prepared, it is possible to indicate
the probable composition of that part of the board
designated by the outgoing board or, in the first
instance, the preparatory commission. The orig-
inal version of the statute prepared by a working
group of eight in August 1955 would have based
the selection of members of the board primarily
on accomplisliments in the atomic energy field.
However, in later negotiations there was consid-
erable pressure from the less-developed areas of the
world to base selection on geographic representa-
tion. The final solution was a compromise of
these two positions. Implicit in the final formula
was a general understanding of all participants as
to the countries qualified for designation by the
board in the category of "most advanced in the
atomic energy field." However, the statute does
not name these countries since there may be
changes in the future.

For the first group of 5 there is general agree-
ment that the U.S., U.S.S.R., U.K., France, and
Canada are qualified. Since this group of 5 comes
from 3 areas of the world (North America, West-
ern Europe, and Eastern Europe), this would
leave 5 of the 8 areas to be represented in the
second group. Those selected as the most ad-
vanced in these 5 areas will probably be Brazil
from Latin America, Union of South Africa from
Africa and the Middle East, India from South
Asia, Australia from Southeast Asia, and Japan
from the Far East. The qualifications of the "most
advanced" countries listed above will probably be
unchallenged, and all are members of the prepar-
atory commission, which designates the members
in the first instance. There was no general under-
standing as to which countiy would be designated
as a supplier of technical assistance ; it will prob-
ably be a Scandinavian country. Under this for-
mula, there will be 23 members on the board, 10
in the first category of "most advanced" countries.

2 from the group of 4 producers of source mate-
rials, 1 supplier of technical assistance, and 10
elected by the general conference.

It is difficult to tell this far in advance what
countries will be elected by the general conference.
As pointed out above, the conference is to elect 1
member from each of 7 areas, whicli would leave 3
floating seats. The U.S. has taken the position
that these 3 seats sliould be allocated — 2 to Latin
America and 1 to Africa and the Middle East.
We believe this distribution will be followed in
practice since it accords with the principle of
equitable geographic representation.

So you can see that a large measure of control
of the agency rests in the board and the predom-
inant influence of the board rests in responsible
hands.

And by the way, I think it should be pointed
out that the United States, United Kingdom, and
the U.S.S.R. are not the only potential suppliers
to this agency. I miderstantl that natural ura-
nium (as opposed to enriched uranium) is going
to be a prime fuel for power reactors. A num-
ber of countries such as Canada, Australia, the
Union of South Africa, Czechoslovakia, and Por-
tugal will be able to supply natural uranium to
the agency. Norway is a supplier of heavy water,
India and Brazil of thorium. The list could be
made longer.

Article VII — Staff. The decisions of the
board of governors will be carried out by the
agency staff, headed by a director general. As
the chief administrator, he will be appointed for
a 4-year term. He will report to the board of
governors.

There are a number of distinguishing features
in the arrangements which govern the com-
position of the staff. Not« in particular these
three requirements: first, the paramount cri-
terion in selection of staff to obtain employees of
the highest standards of efficiency, technical com-
petence, and integrity; second, an injunction to
keep the agency staff to a minimmn embodied
directly in the language of the statute; and third,
the provision giving some preference to nationals
of member countries providing support to the
agency.

Article VIII — Exchange of mformation.
Article VIII deals with the exchange of scientific
information. The following features are note-
worthy. First, the provision of general informa-
tion is wholly discretionary with each member;

iune 3, 1957

883

second, scientific information developed as the
result of agency assistance to particular projects
must be made available to the agency, and sub-
sequently to each of the members. Since we don't
contemplate the United States as a recipient of
agency aid, our role as a supplier of information
remains entirely voluntary. The United States
will not furnish the agency information of a clas-
sified nature.

Article IX — Supplying of materials. The
first point to make about article IX, which deals
with the supplying of materials, is that it puts no
obligation on the members. The decision to sell or
otherwise make available any materials to the
agency is entirely up to them.

The text of article IX leaves no room for any
different interpretation in this regard. Para-
graph A, on fissionable materials, merely says
that the "Members may make available . . . such
quantities as they deem advisable'''' ; and paragraph
B, on source materials, also uses the same lan-
guage : "Members may . . . make available. . . ."

If there were any doubts here on the meaning
of the statute, the statutory history would dispel
them. At the New York conference last fall,
Denmark and Pakistan proposed that paragraphs
A and B be amended by substituting "should" for
"may" so as, in their words, "to put at least some
moral obligation on members" to come forward
with materials. The United States, among
others, spoke against this amendment, and it was
defeated.

Materials transactions between the agency and
its members are voluntary on hoth sides. Just as
the agency cannot call on any member to make
materials available, so the members cannot fob
off any materials on the agency that the agency
does not need and does not wish to accept. Mem-
bers will notify the agency how much and what
kind of materials they are prepared to make
available. These notifications are essentially of-
fers to the agency. If the agency takes up an
option and concludes an agreement with the sup-
plying country setting out the terms, tlie supply-
ing countries then have a contractual obligation
to deliver the materials to agency projects as the
agency specifies, but until the agency so specifies
the supplier lias the right to keep the materials
in its own possession. It can, of course, deliver
to agency storage facilities but only if it wants
to and if the agency agrees.

Paragraph C of article IX provides that in
offering to make materials available to the agency
the supplying member luidertakes to do so only
"in conformity with its laws." This phrase was
added to the statute before the 12-nation meeting
in Washington early in 1956 and was accepted
without debate both at that meeting and the sub-
sequent 81-nation meeting in New York. It em-
bodies a suggestion made in the course of a dis-
cussion of the statute at an executive session of
the Joint Committee on Atomic Energy during
the summer of 1955. This language gives ad-
ditional assurance, in respect to materials, of
what is abundantly clear throughout the statute :
that there is nothing in it that supplants or con-
flicts with any law of the United States.

One further observation on article IX. Mem-
bers make materials available only "on such terms
as shall be agreed with the Agency." This
phrase of article IX-A means that, if the supplier
is not satisfied with the price that it will get or
with the agency's provisions for storage or with
any other arrangements bearing on security or
health and safety, it is under no obligation wliat-
soever to commit any of its materials. However,
under article IX the board of governors makes
the decision as to the specific agency project in
which the material will be used. I am confident
that the board of governors is so made up that
in practice the distributions will be equitable, re-
flecting the criteria set forth in article XI, which
I shall discuss presently.

In the unlikely event that the board of gover-
nors should distribute materials in a way that any
supplier regaixled as unfair, it would run the risk
of losing this supplier. The United States, like
any other supplier, could not be expected to con-
tinue to offer materials if the performance of the
agency were not fair and reasonable.

Article X — Services, equipment, and facilities.
Only a brief word is needed on article X. Essen-
tially it provides that membere may make serv-
ices, equipment, and facilities available to the
agency. Here again the decision is entirely up
to the supplier. As in article IX, the words '■'■m-ay
make available" are used. In New York, the
Danish and Pakistani delegations proposed, as
they had for article IX, that tlie word "sliould"
be substituted for "may," but after the rejection
of their amendment to article IX they witiidrew
this one without a vote. The same provision is
made for reimbursing suppliers of services, equip-

884

Deparfment of State Bulletin

ment, and facilities as is made for reimbursing
suppliers of materials.

AitTicLE XI — Agency projects. Article XI
provides a standard set of arrangements which
must be followed in getting materials, services,
equipment, and facilities to the nations who will
use them. Paragraph A provides that any mem-
ber or group of members of the agency desiring
to set up any project for the peaceful develop-
ment of atomic energy may request the agency's
assistance. Paragraph C authorizes the agency
to arrange for the supplying of any of these in
two ways. The agency may act as intermediary
to bring the applicant into direct arrangements
with the supplier. Or it may provide the needed
items directly.

The agency is also authorized, by article XI-B,
to help the applicant get financing of the project
from outside sources, but in doing this the agency
will neither provide guaranties nor assume any
other financial responsibility itself. Note also
that the reference to "outside sources" confirms
what is otherwise quite clear, that the agency
itself is not going to be a financial institution au-
thorized to make grants or loans to members.

In approving a project, the board of governors
is directed by article XI-E to give due considera-
tion to such points as the usefulness and feasibility
of the project; the adequacy of proposed health
and safety measures; the adequacy, availability,
and equitable distribution of materials and other
resources ; and the special needs of underdeveloped
areas.

In connection with every approved project there
must be a so-called project agreement between the
agency and the member or members concerned.
Article XI-F requires that this project agreement
must include certain provisions. Among them
are provisions for allocation to the project of any
required materials and for transfer of fissionable
materials under adequate conditions to protect
health and safety. There must also be a state-
ment of the terms and conditions, including
charges, on which any materials, services, equip-
ment, and facilities are to be provided. In ad-
dition, provision must be made for the disposition
of rights in inventions, and any patents on them,
growing out of the project.

Finally, every project agreement must include
two important undertakings by the member or
members concerned. The first is that the assist-
ance provided shall not be used in such a way as

to further any military purpose. The second is
that the project shall be subject to the safeguards
provided for in article XII. Since the safeguards
of article XII, which I shall discuss next, are de-
signed to be adequately protective for every pos-
sible type of project the agency might support,
not all of them would be applicable in every case.
It was provided that the project agreement should
specify which of tlie safeguai'ds are relevant to
the project, thereby eliminating a possible source
of dispute at the outset.

Article XII — Agency safeguards. Article
XII permits the United States to join the agency
in confidence that the great affirmative aim of ac-
celerating the peaceful development of atomic en-
ergy throughout the world can be realized with-
out concurrent furtherance of any military pur-
pose. Secretary Dulles has explained how article
XII may achieve even more than that, how it may
make a positive contribution to solving the prob-
lem of nuclear disarmament. I shall not go over
this ground again, nor shall I repeat Admiral
Strauss' statement of the technical and scientific
reasons for having faith in article XII's adequacy
for the function it aims to perform.

The striking thing about tliis "safeguards"
matter was the unanimity reached after long and
fairly hot discussions. As Secretary Dulles said
last Friday, if the atoms-for-peace program is to
be efl'ectively supervised, it will have to be under
some multilateral scheme. Bilateral policing by
American inspectors has a limited life expectancy.
This treaty provides the best multilateral safe-
guard arrangement that we know of.

Article XIII — Reimhursement of members.
The principle set out in this article was already
proposed in our draft of August 1955, which was
discussed with the Joint Atomic Energy Commit-
tee before its release. Riglit from the start we
have insisted on the idea that this agency is a
teclmical agency and not a grant-aid service.

Artici-^ XIV — Finance. Leadership in the
drafting of this article was borne primarily by
Canada during the Washington 12-nation nego-
tiations, and again in New York its defense fell
to a large extent to Canada. They were mindful
of the importance of following financial proce-
dures which would not run the risk of facing mem-
bers of the agency with large bills to pay for
extravagant programs. A similar spirit of cau-
tion and conservatism governed the reaction of
others also.

June 3, 1957

885

The concept of dividing agency expenses into
administrative costs, to be met by apportionment
among members, and "operational" outlays, to be
recovered from program beneficiaries, was a new
contribution to the field of financing international
activities.

Article XV {Privileges and immunities),
XVI {Relationship with other organisations),
and XVII {Settlement of disputes) do not con-
tain provisions requiring extensive explanation.

Article XVTII — Amendments and with-
drawals. I know that this article is of special
interest to members of the committee. Question-
ing in previous sessions has indicated that there
is some concern lest amendments unacceptable to
the U.S. would be adopted over our objection.

First, let me say that this eventuality is entirely
inconceivable to me. If two-thirds of the members
of the agency ever took a stand on a basic issue
which was opposed to our own, I am sure that this
would signify a situation of such a character that
well before the occurrence of such a development
we would have ceased to be either a member or
active participant in the agency.

But in any event, as you will see in paragraph D,
a nation is fully at liberty to withdraw whenever
an amendment unacceptable to it is adopted
through the procedures of paragraph C. Note
also that there is no limitation on withdrawal at
any time after 5 years from the entry into force
of the statute.

I would point out, finally, that the amendment
procedure is similar to that in various of the spe-
cialized organizations in which the U.S. partici-
pates. Any more rigorous procedure would have
increased the difficulty of making changes in the
statute which the United States may at some
future time consider desirable.

Articles XIX {Su,spension of privileges) , XX
{Definitions), XXI {Signature, acceptance, and
entry into force), XXII {Registration with the
United Nations), and XXIII {Authentic texts
and certified copies) do not contain provisions
which warrant taking up your time unless you
have specific questions.

Annex I — Preparatory Commission. You will
notice that there is an annex to the statute which
provides for tlie establishment of a preparatory
commission. This commission, consisting of 18
member states, was set up to make arrangements
for the first meeting of the general conference, to
study and recommend to the first board of gov-

ernors and general conference an initial program
and budget, and to carry out certain other admin-
istrative responsibilities.

The commission has been meeting intermittently
since last October and is well on the way to ac-
complishing its assigned tasks. Paul Jolles, of
Switzerland, was appointed executive secretary,
and a staff of about 15 is assisting him. Detailed
discussions are under way on the specific, im-
mediate activities the agency should undertake and
on the staff and budget required to carry out these
activities. The U.S. delegation to the commission
has played a key role in all of this activity.

The commission is to meet next Monday [May
20] to set a target date for the first meeting of
the general conference and the board of governors.
As you know, Vienna has been tentatiyely selected
as the site of the agency headquarters, pending
formal approval of the agency itself after it comes
into existence, and these first meetings of the
agency will be held in that city.

Importance of U.S. Participation

Mr. Chairman, my enthusiasm for this agency
and for United States participation in it stems
from a profound conviction that it carries in it the
seed of the genuine international peace and co-
operation that we have all been seeking for so
long. I am not a stranger to international con-
ferences, large and small, many of them frus-
trating. As an example, 2 years ago I spent many
weary weeks in London liaggling over disarma-
ment and with painfully little success.

But this operation has been different, and for
a very simple reason: the nations of tlie world
not only want this agency — they want it to
succeed. The New York conference on the statute
represented the entire civilized world in a way
that no conference of this kind has ever repre-
sented it before.

You are aware that 81 nations, the entire mem-
bership of the conference, voted for this statute
that is now before you for ratification. Not only
that — there was not one single negative vote on
any one of the 23 articles of this statute. That I
was the net acliievement of this i>art of the great
project: that all these nations wanted tl\is agency
so much that they were willing to assume tlie obli-
gations written into this document — willing to
submit to inspection and control — willing to sub-
merge national aspirations, ingrained suspicions
of one another, even age-old hatreds. The result

886

Department of State Bulletin

is a better statute than the one developed by the
12-nation working group, which in turn was an
improvement on the draft of August 1955.

This great and satisfying experience has left me
with two sincere convictions which I submit to
you now in closing :

1. Tiie International Atomic Energy Agency in
itself represents one of the great hopes of the
world. This world has shown that, first by its
overwhelming approval of the concept, then by
its unanimous adoption of the machinery.

2. The negotiations and the conference have
proved that the representatives of the people of
the world can work togetlier, can iron out differ-
ences and break deadlocks, can come triumphantly
and imanimously to a common, worldwide posi-
tion.

Mr. Chairman, even if the agency should not
live up to all expectations in the practice of its
functions, it has already achieved a hitherto un-
achieved distinction in history. It has brought
the world together on a common ground of agree-
ment and endorsement. It has opened up vistas
of peaceful consultation and cooperation that
many had despaired of finding.

I have been truly grateful for the chance to
participate in this first big breakthrough toward
our common goal of peace with justice — the break-
througli initiated, nourished, developed, and
brought to maturity by the United States. I told
the final session of the 81-nation conference that
we had been making history during the few weeks
we had been working, and I ended with this
challenge to them :

Science has given us the knowledge. Diplomacy has
developed the Instrument. May we have the wisdom to
use both for the benefit of all mankind !

ADDRESS BY FRANCIS O. WILCOX <

The Department of State has for years watched
with interest the activities of your organization.
We have come to Iniow it as an effective proponent
of a point of view which is not identical with our
own but whose general direction and purpose stir
a deep moral response among men of good will.

As you know, we have honest differences of

" Made before the National General Assembly of the
United World Federalists at Boston, Mass., on May 18
(press release .300 dated May 17). Mr. Wilcox is Assist-
ant Secretary for International Organization Affairs.

opinion as to the practicability and desirability
of some of your ultimate objectives. But we do
appreciate the responsible way in which your
officers seek to develop a better understanding
among the American public within your field of
activity. We appreciate, too, the distinction you
draw between your ultimate aims, on the one hand,
and what can be done today and tomorrow, on the
other, to move toward a better-organized inter-
national life.

Tonight I shall discuss what I believe is a very
important step toward this goal, one that has
gone too largely unnoticed. I refer to the estab-
lishment of an International Atomic Energy
Agency, which is now far advanced toward reali-
zation. My intention is to review briefly what
this new agency is, how it came about, why those
who have dealt with it consider it of such great
importance to the United States. I want also to
touch on the principal objections which critics
of the agency are making. Every now and again
in the course of world history mankind is con-
fronted with a vision, a great challenge, which
may substantially alter the course of human
affairs. I believe we are now confronted with
such a challenge.

Evolution of the Peaceful-Uses Proposal

This is a timely topic. This week in Washing-
ton the United States Senate is considering the
statute of this agency, as a treaty which Presi-
dent Eisenhower has submitted for approval and
consent to ratification. The statute has been
signed by the United States and 79 other coun-
tries. The decision facing the Senate is an urgent
and momentous one. Ratifications have already
been deposited by Guatemala, the Soviet Union,
Switzerland, Byelorussia, Rumania, Pakistan, and
Austria. Wlien the United States ratifies, we
shall be one step closer to the objectives declared
by President Eisenhower in his atoms-for-peace
proposal before the United Nations General As-
sembly, in December 1953, to "find the way by
which the miraculous inventiveness of man shall
not be dedicated to his death, but consecrated to
his life."

The true significance of this proposal becomes
apparent when it is seen against the background
of this atomic era which we have entered.

It was in December of 1942, under the stadium
at the University of Chicago, that we first proved
that our theories about the nature of the atom and

June 3, 1957

887

the relationship of mass and energy were accu-
rate. For it was there that the firet controlled
nuclear chain reaction took place, and it was then
that the scientists presented society with both a
great blessing and an awesome problem.

The forces of nature recognize no moral code.
If unleashed as an uncontrollable weapon of war,
this miraculous force could destroy mankind and
leave the earth barren and uninhabitable. If used
for peaceful purposes, it could bring an unprece-
dented era of progress and advancement. Re-
member that locked in a single pound of uranium
is the potential energy equivalent to nearly 3 mil-
lion pounds of coal. Remember, too, that the
horizons for improvement in agriculture and
industry, with the help of the atom, are unlimited.

The United States realized early that it could
not expect to have a monopoly on nuclear energy
forever. It would be vital to the world that there
be some form of international control over such a
potentially destructible force. To this end, the
United States, in 1946, submitted the Baruch plan
to the United Nations.^" This called for the crea-
tion of an international atomic development au-
thority within the framework of the United
Nations. The organization would have had the
exclusive power to manufacture and control the
use of all atomic materials and make sure that no
nation could come into the possession of atomic
weapons.

Fulfillment of this unprecedented offer to aban-
don atomic weapons, made by the only nation
possessing them, was denied to the world by the
Soviet Union, which refused to agree to any effec-
tive system of inspection and control. The reason
soon became clear. Wliile long and frustrating
negotiations were being carried on in the United
Nations, the Soviet Union was working feverishly
to perfect its own atomic capability. On the 23d
of September 1949, President Truman announced
that the U.S.S.R. had successfully detonated an
atomic device.^^ The atomic monopoly was
broken. The atomic weapons race was on. The
needy world awaiting the benefits inherent in the
atom would have to bide its time.

However, we never gave up our hope for the
eventual harnessing of atomic energy for peaceful
uses. The primary question was whether or not
this could be done on an international scale without

'° Bulletin of .Tune 23, 1946, p. 1057.
" Ibid., Oct. 3. 1949, p. 487.

an overall disarmament agreement between the
free world and the Soviet bloc.

But by the fall of 1953 President Eisenhower
decided that international cooperation in the de-
velopment of atomic energy for peaceful uses need
not wait upon settlement of the more complex
problem of a comprehensive system of disarma-
ment. On December 8, 1953, he delivered his now
historic address before the United Nations and
declared that the benefits of the atom should no
longer be withheld from a waiting world. He pro-
posed the pooling of fissionable materials from the
world's atomic stockpiles and the pooling of world
technology' and scientific manpower in an Inter-
national Atomic Energy Agency.

There was an electric response from the members
of the United Nations in support of the President's
proposal — from all but the Soviet Union. It re-
jected the United States proposal and repeated its
insistence on a ban — in fact unenforceable — on the
use of nuclear weapons as a prior condition
to the formation of a worldwide atoms- for-peace
program.

"\^niat followed is an excellent example of the
moral suasion which can be exerted by the mem-
bers of the United Nations on important issues.
The United States pressed forward in negotia-
tions without the Soviet Union but with seven
other states advanced in atomic energy. This
group produced the initial draft statute for the
International Atomic Energy Agency. In a new
departure in international treatymaking, it was
circulated to the 84 members of the United
Nations and the specialized agencies for sugges-
tions and comments.

The negotiating group was expanded in the
fall of 1955 to include the Soviet Union, which
had now finally decided to join. They seemed to
recognize the wisdom of the old maxim — "if you
can't lick 'em, join 'em." This was an essential
forward step. The Soviet Union obviously saw
only disadvantage in continued opposition to an
idea of such worldwide appeal.

By the summer of 1956 the enlarged group had
produced and unanimously accepted a revised
draft.'= In September 1956 representatives of
81 governments and 7 specialized agencies met
in New York at the United Nations Headquarters.
It was the largest international conference ever
held. Tlie statute was put under the microscope

" For text, see ihid.. May 21, 1956, p. 852.

888

Department of State Bulletin

and reviewed, article by article. Over 100 pro-
posed amendments were introduced. The
amendments that were adopted, all of which were
acceptable to the United States, clarified and
broadened some provisions of the statute and
made it stronger and more representative.

Ten critical years had elapsed since the United
States first proposed to turn its atomic monopoly
to the benefits of tiie world. Now tiic first posi-
tive step had been taken. Through our efforts
and the growing pressure of world opinion the
Soviet Union had been induced to enter into
serious negotiations on the peaceful uses of
atomic energy.

The concept of this agency represents the ideas
and ideals of the United States as stated by
President Eisenhower in his December 1953
speech. It is not only a bold and imaginative
new step toward the harnessing of atomic energy
for the benefit of mankind. It is also a means
whereby nuclear materials for weapons may be
limited, reduced, and diverted from destructive
purposes. It could become the keystone of a
new era of atomic energy development free from
the terrible fears of an unlimited arms race.

Functions and Responsibilities of the Agency

The agency of which I speak is within our
grasp, but it has not yet come into being.
\^^lether it is established and, more important,
whetlier the United States plays a full and con-
structive role in its operation and development
depends in no small part on the understanding
and support given to it, now and in the future,
by individuals like yourselves and the organiza-
tion you represent.

Organizationally the agency will be made up
of a general conference of all its members, a
board of governors numbering 23, and a di-
rector general. Power will reside primarily in
the board of governors, representing the more
advanced countries in nuclear development plus a
balanced geographical representation. The gen-
eral conference, in which ever)' nation has an
equal voice, wiU have important powers of re-
view, recommendation, and approval. A direc-
tor general will be the chief executive officer of
the agency, selected by and responsible to the
board. He will appoint and direct the staff of
the agency, which will carry on day-to-daj^ op-
erations.

June 3, 1957

426935—57 3

So much for the structure of the agency.
(Jnce organized, what will it do? By the terms
of its statute, the International Atomic Energy
Agency is to "seek to accelerate and enlarge the
contribution of atomic energy to peace, health
and prosperity throughout tlie world." The
agency is also to insure, so far as it is able, that
its assistance is not used to further any military
purpose.

The first job of the agency is to accelerate the
spread of atomic knowledge. At present this
Ivuowledge is confined to a few countries. This
situation must be changed if the full promise of
atomic energy is to be realized. The agency will
be a clearinghouse for information on atomic en-
ergy. It will stimulate the interchange of ideas,
of scientists, and experts. It will have a crucial
role to play in the all-important task of training
new cadres of scientists and teclinicians through-
out the world. It will develop worldwide stand-
ards for protection of health and safety and for
the problem of waste disposal, which looms large
in tlie atomic age. These activities have great
value in themselves and will also encourage the
search for new knowledge through research.

In addition to assisting the flow of ideas, the
agency will promote the application of atomic
energy to basic human needs. Most important
are the nuclear research reactor and the nuclear
power reactor, which hold vast potential for
countries with little or only high-cost conven-
tional fuel. Almost as dramatic is the multitude
of uses of radioactive isotopes in medicine, agi"i-
culture, and industry. We estimate that Amei'i-
can industry alone will soon save nearly $5 bil-
lion a year through the use of spectacular isotope
techniques. It would be impossible now to place
a dollar amount on the value of isotopes in re-
search and medicine in the treatment of cancer,
leukemia, and other dread diseases.

To do these jobs the agency will act as a pool
for fissionable materials and as a channel for
delivering them to the user country. These
materials are to be supplied by member states on
a reimbursable basis, unless otherwise agreed.

The United States has already announced that
it will provide 5,000 kilograms of uranium 235
on terms to be agi-eed upon. In addition, we will
match the sum total of all other contributions
made until July 1960. The United Kingdom
and the Soviet Union have also made small offers
of fissionable materials to the agency.

889

The agency's most important responsibility be-
gins when an allocation of fissionable material has
been made. The safeguards system written into
the statute is, I believe, one of the most signifi-
cant developments in international relations in
our time. I will not attempt to describe tliese
controls in detail here, but I would emphasize that
they will insure that one of the primary objectives
of the agency — that the assistance it makes avail-
able is not used for military purposes — is met. As
laymen, we are aware of the double-edged natui'e
of atomic energy, that the material which fuels a
reactor is potentially fuel for a bomb.

Great pains have been taken to guard against
wrongful use of the materials intended for peace-
ful use. These far-reaching controls, although
they will apply only to projects developed with
agency help, have been unanimously accepted by
the nations which will participate in the agency.

Peaceful Uses and Disarmament

I wish to devote a few minutes to what I would
like to call the "submerged" assets of the proposed
agency. There is in tlie International Atomic En-
ergy Agency a jDotential for peace which you will
not find in its statute. It has been very little
lieralded and largely overlooked. This is the very-
positive relationship the agency may have to the
solution of disarmament and international secu-
rity problems.

In his atoms-for-peace speech before the Gen-
eral Assembly in 1953, President Eisenhower
made this expectation clear. He expressed the
hope that his proposal would help to

. . . open up a new channel for peaceful discussion, and
initiate at least a new approach to the many difficult
problems that must be solved ... if the world is to
shake off the inertia imposed by fear, and is to make
positive progress toward peace.

This hope has been borne out. Tlie negotiations
for the establishment of the International Atomic
Energy Agency have so far been notably success-
ful in opening this "new channel" for peaceful
cooperation between the East and the West in a
field of vital importance and symbolic significance
for world peace. I am convinced that the very
existence and successful functioning of the agency
may in time help to improve other aspects of in-
ternational relations.

For example, the agency may case the way to-
ward solution of some of the most dillicult prob-

lems in the disarmament field. Specifically, the
agency can lielp in moving toward international
control over nuclear weapons. In our disarma-
ment discussions with the Soviet Union on this
subject the major area of disagreement has been
the problem of controls.

However, the inspection and safeguards pro-
vided in the statute of the agency have won world-
wide approval, including that of the U.S.S.R. It
is possible that the establislunent and operation
of such a system under agency auspices would
demonstrate the workability of international con- ,
trol and accustom the international community to 1
the procedures involved. The confidence bred of
experience is transferable. Our hope is that it
will be easier to develop disarmament controls
as a result of our experience with peaceful-uses
control.

The specter of nuclear war is at present held
at arms length by the equilibrium that has devel-
oped between the atomic forces of East and West.
If the possession of nuclear weapons spreads much
beyond the U.S., the U.K., and the U.S.S.R., this
equilibrium will be upset. If a fourth country,
and a fifth, and perhaps half a dozen others should
obtain such weapons, the control problem would
become infinitely more complicated.

The establishment of the agency, and with it
an internationally accepted system of safeguards,
is urgent. Peaceful development of the atom |
throughout the world cannot be stopped. The
question is, will it be done in safety or will it be
done in chaos ? The time we have is dangerously
short. With the agency systein other countries j
can be supplied with nuclear materials without '
simultaneously spreading the nuclear weapons
threat. Peaceful development of the atom will
proceed in the open, in the full light of day. Gov- .
ernments will become assured that their neighbors '
will not secretly produce nuclear weapons out of
peaceful-uses assistance. There will be a reduced
temptation to produce their own in self-defense.

To rely on anything other than an international
approach would be both wasteful and dangerous. I
Each supplier nation would then have to establish
its own control standards. Such unilateral stand-
ards, however good to begin with, would be eroded
away in the process of economic and political com-
petition between the suppliers of fissionable
materials.

890

Department of State Bulletin

Answering the Agency's Critics

During tlie past week I have spent considei'able
time at the Senate hearings on the proposed
agency. Both inside and outside Congress legiti-
mate questions are being raised. People want to
know whether the creation of this agency and our
membership in it is consistent with our foreign-
policy objectives and in the interests of the United
States and its security.

"How can we be sure," it is asked, "that the nuc-
lear materials to be provided on a worldwide scale
for peaceful purposes won't be diverted and made
into atomic bombs?" In answering this question
I might point out that we would not be asking the
Senate to ratif\- this treaty if we were not satisfied
on this all-important matter.

Throughout the negotiations leading to the
statute the United States has empliasized the im-
portance, indeed the absolute necessity, of sound
safeguard provisions. The United States posi-
tion was sustained by the overwhelming majority
of nations, and firm, thorough procedures are pro-
vided for.

Article XII of the statute sets out in detail the
rights and responsibilities of the agency in this
field. The design of specialized equipment sucli
as reactors is to be examined and approved to
assure that effective safeguards can be applied.
Complete records must be kept by receiving na-
tions and progress reports made to the agency.
The agency must also approve the means by which
used nuclear fuels are processed. Materials pro-
duced as a byproduct must either be used for
peaceful purposes under continuing agency safe-
guards or must be stored in agency facilities. To
verify all of these procedures and commitments,
international inspectors will have free access at
all times to all places, data, and persons involved
with agency projects.

This is the heart of the statute. For the first
time in histoiy a large number of states have de-
clared their willingness to admit international
inspectors within their boimdaries in the larger
interests of mternational peace and security.
This is a breakthrough of sigiiificance for the
future.

In addition, there are other almost automatic
safeguards which are inherent in the materials
and equipment involved. For example, fuels for
reactors supplied through the agency will not be
of the quality required for making weapons. Any
nation wliich seized this material would not be

able to make bombs out of it for months, and
then only with expensive and complicated equip-
ment and advanced technical Icnowledge.

The state thus attempting to violate the statute
would be subject to immediate action. Further
agency assistance M'ould be stopped, and the
multimillion-dollar facilities the counti-y had
built before receiving the materials would be use-
less. Meantime the international commimity
would take whatever other measures might be
necessary.

I consider that it is extremely unlikely that any
member receiving agency assistance would at-
tempt deliberately to misuse it, and, if they did
miscalculate and take such reprehensible steps,
they would gain no net military advantage.

The possibility has also been raised that an
effort might be made secretly to siphon off ma-
terial of military value and perhaps to hide it
away in some remote place. There are natural
as well as manmade safeguards against even this
eventuality. . For example, material taken from
the core of reactors is liighly radioactive and
would be immediately letlial unless liandled with
great care by hea\n,^, complex machinery from be-
hind massive concrete and metal shielding. Such
activity could not in any case go unnoticed.

From all these factor's I think it is apparent
that man and nature conspiring together can pro-
vide a system which will assure adequate safe-
guards for all assistance given through the agency
and which will foster man's welfare rather than
encourage any sinister intentions he might have.

Questions of a political nature, too, have been
raised. For instance, it is asked, "Will United
States materials and assistance go to Communist
countries, perhaps eventually to be used against

us?

8"

One of the most important services this agency
can perform is to stimulate East and West to co-
operate in a field of great mutual interest. Mem-
bership is open to all members of the United
Nations and the specialized agencies, regardless
of political orientation. It is therefore true that
United States materials furnished to the agency
could go to Communist coimtries. But with it
will go the safeguards and controls I have de-
scribed. In effect, this means that any satellite
country, precisely like any other country receiv-
ing assistance, would liave to open itself to con-
tinuing inteniational inspection.

The American people have a legitimate con-

June 3, 1957

891

cem as to what our part in the agency will cost.
"Does this mean," you may ask, "that the United
States will be giving away vast quantities of
nucleai' materials ox* perhaps picking up the tab
for the entire program?"

I hasten to assure you that this is not a so-called
"give away" program. The statute is crystal clear
on this point. Countries that furnish materials,
services, equipment, or facilities to the agency are
reimbursed unless they specifically agree to make
a gift. The board of the agency is to establish a
scale of charges for the assistance it renders.

The United States offer of 5,000 kilograms of
uranium 235 to the agency is not an outright gift.
It is "banked" by us and made available on terms
to be agreed upon after the agency comes into
existence. There will, of course, be administra-
tive expenses for the agency, such as salaries and
oflSce expenses. It is estimated that the budget
for these items for the first year will be in the
neighborhood of $6 million. If the United States
contributes one-third, which is the maximum al-
lowed by Congress without specific authorization,
our bill would be about $2 million. This is a rela-
tively modest investment in an organization of
such great promise.

It has been stated tliat the United States par-
ticipation in the agency could result in our giv-
ing away secret information. This, of course, is
not true. Member states which provide materials
and knowledge decide themselves what informa-
tion they wish to make available to the agency,
while receiving states are obliged by the statute
to inform the agency of any discoveries made
with agency help. Clearly, we stand to add to our
atomic information, not dissipate it.

I think you know that the United States has
already developed an extensive bilateral atoms-
for-peace program. We already have agreements
with over 40 individual nations. "Wliy is it neces-
sary," it might be asked, "to establish an interna-
tional organization in this field? Won't the
agency duplicate what is already being done?"

I have tried to show that the agency approach
offers important advantages which are impossible
to obtain tlirougli bilateral agreements alone. Na-
tions will not always be willing to accept uni-
lateral inspection by another state. Political and
commercial competition among supplying coun-
tries could result in diluting and weakening the
safeguards standards if we were to follow the
road of bilaterals alone. I have touched on the

892

relationship between the agency and disai'mament
and the avenue it opens for East- West coopera-
tion. In addition, the agency will make possible
more economic use of nuclear materials and the
trained manpower which is so scarce. Also there
will be a pooling of new discoveries made with
agency assistance by its recipients.

We all realize that the exact pattern of future
scientific development is not always predictable
and will not necessarily be restricted to those
states with which we have bilateral relationships.
The United States itself, therefore, may gain, in
ways not now known, from research conducted
with agency help.

In some quarters there have been expressions of
concern that the new agency might provide an op-
portunity for Red China to seek international
recognition. Is it possible for Red China to be-
come a member of the agency ?

In all stages of development of the agency, to
the present, it has been the Government of the Re-
public of China that has represented "China." It
is this Government that attended the conference
which drafted the statute and that signed the
statute. It is the Government that will represent
China in the agency.

The only way the Red Chinese can be seated in
any United Nations agency is to challenge success-
fully the credentials of the representatives of the
Republic of China. Our experience in the United
Nations over a number of years makes us fully
confident that this challenge, if made, will be
roundly defeated. The prospective membership
of the agency should not differ substantially from
that of the 11th General Assembly of tlie United
Nations which, in November of last year, voted
47 to 24 to support the United States position on
the question of Chinese representation."

Finally, the question is asked : "How can this
agency really work, since it has no final authority
to enforce its rules and decisions?"

I know that the problem of sanctions is one of
particular interest to the American people. As
long as we are in a world of nation states, we will
have to live with this question. However, the In-
ternational Atomic Energy Agency has at its dis-
posal a type of sanction not available to other in-
ternational organizations except the United Na-
tions itself. There the use of sanctions is often
inhibited by the veto.

" lli(i., Nov. 2G, 19.56, p. 855.

Department of State Bulletin

The agency will bo oinpowered, by a simple ma-
jority vote of its board of governors, to cut off
further assistance in cases of violation. It can
also demand return of fissionable and other ma-
terials already provided. This would affect not
only new projects but the continuance of old
ones. If the agency develops as an important in-
strument of international cooperation in this field,
it is highly unlikely that any state which relied
upon it for assistance would want to cut itself off
from such a source of assistance, information, and
supply.

There is alwa3's the remote hazard that an ir-
responsible government might suddenly seize
plants and materials located in its territory. This
could only be done by overt action. It woidd im-
mediately become known to all the world and
would invite rapid retaliation. The incident
would then become a matter for collective politi-
cal action by states whose security might be en-
dangered, or by the United Nations. The agency
safeguards system, however, will reduce this pos-
sibility by lessening to a minimum the advantages
wliich would be gained by seizure and by insuring
an early warning of aggressive intent.

Conclusion

As I mentioned at the outset, the statute of this
agency is before the United States Senate for its
ratification. We are presented with a rare chal-
lenge to reaffinn our leadership in the fight to
bring the energy of the atom to the benefit of all
mankind. We must not fail to meet this chal-
lenge. It is theoretically possible, by the terms of
the statute, for the agency to come into being
without the United States. Such a turn of events
to me is unthinkable. It would have disastrous
implications for our leadership in this field.

The vast potentialities for good in the atomic

energy field can scarcely be conceived. The great-
est need today is for knowledge. As the demand
grows for nuclear power, for research, for isotopes,
for the many varied applications of the atom, the
International Atomic Energy Agency will become
the means whereby the nations of the world can
work in peace and harmony toward mutual devel-
opment.

The world has grown too snuill to keep the
wonders of atomic energy the exclusive property
of a few states. If the spread of atomic knowledge
is to be, then let it be done in a controlled and
safeguarded way. This the agency would assure.

The negative aspects of man's greatest discovery
have so far dominated the atomic age. We have
become beset with fears of the disaster that would
result by the misuse of this awesome power. Now
we have the opportunity to turn with equal energy
and hope to the constructive side.

In this agency one means is at hand.

It is for these overriding reasons that we have
given such imyielding support to the creation of
this agency. We visualize it as a means whereby
mankind can reach new heights of understanding,
cooperation, and welfare. With the proposed
agenc}' we hold the key that can, in time, open the
wonders of the atom to the benefit of all. We can
hope in the words of Secretary Dulles that "the
splitting of the atom might conceivably lead to a
unifying of the now divided world."

Letters of Credence

Cdmida

The newly appointed Ambassador of Canada,
Norman A. Robertson, presented his credentials to
President Eisenhower on May 17. For the texts of
the Ambassador's remarks and the President's re-
ply, see Department of State press release 294.

June 3, 7957

893

Secretary Dulles' News Conference of May 14

Press release 288 dated May 14

Secretary Dulles: I will be glad to receive
questions.

Q. Mr. Secretary., lohat is the policy of the
United States with respect to the creation of a
neutralized or demiUtanzed zone in Europe
hosed on the Iron Curtain division inside
Germany?

A. The policy of the United States is not to
accept any procedure along the lines which you
indicate. In the first place, we do not accept any
arrangement which is based upon the present par-
tition of Germany. And there seems to be per-
haps some misunderstanding about the so-called
Eden formula, which, as submitted at the Summit
Conference, did not involve any demilitarized
zone at all. It was a plan for reciprocal inspec-
tion of what presumably would be militarized
areas. If the areas were demilitarized, then
your inspection would not prove anything as to
the capacity of being able to control and verify
your inspection. And the kind of thing that we
are talking about in the first place did not involve
any acceptance of the partition of Germany or
any area which would imply acceptance of that,
nor does it imply any demilitarized area for
Germany.

And let me add this, tliat in anything wliich
touched directly or indirectly upon Germany and
its prospects for reunification we would act only
in the closest concert with Chancellor Adenauer.

Q. Mr. Secretary, tnhat is the kind of thing iiie
a;re thinking about in this armaynent discussion
as to Europe?

A. Well, we do not have any crystallized
thinking at all as far as Europe is concerned as
yet. What we are thinking of is the possibility
of developing zones whicli would be subjected to
aerial inspection. We are not thinking just in
terms of Europe in that respect but rather in

terms of the Arctic area, Alaska, Siberia, and the
like. That does not exclude the possibility of
there being developed an area in Europe. But
the difficulties in the way of extending aerial in-
spection at this stage to Europe are considerably
greater perhaps tlian they are in the case of other
areas, both because of the political implications
and because of the greater number of countries
involved.

Q. Is it not possiile, sir, to have an agreed zone
of inspection in Europe without having it tied to
the political problems?

A. Yes. That is a possibility which I do not
exclude. All I say is that, in an area where prog-
ress at best is difficult, the difficulties of finding
an arrangement which would cover Europe are, I
think, greater than the difficulties in dealing with
the less-populated areas which are not subject to
as many political complications as Europe is.

Q. Mr. Secretary, there have been reports that
Governor Sta.'isen has been authorized to come up
with specific proposals on these areas you talk
about. Has he been so authorized?

A. No.

Q. Mr. Secretary, as a policy are tee for or
against creating neutralized zones as part of any
disarmament scheme?

A. Well, I don't think we favor any plan for a
neutralized zone insofar as proposals or thinking
on that subject have been developed as yet. I
believe that Chancellor Adenauer suggested that
with a reunified Germany he would be willing to
agree that military forces of Nato would not be
put into the eastern zone of what would (hen be
the reunified Germany. And of course anything
that Chancellor Adenauer wished in that respect
would be given very careful and syni]>atlu'tic con-
sideration by ourselves. It would not be practical
to put military forces in that area witliout tlie ap-

894

Department of State Bulletin

proval of tlie government of the reunified Ger-
many. That is tlie only suggestion of that kind
that I am aware of. It deserves, I think, sym-
jjathetic consideration.

Q. Mr. Secretary, what are the prospects for
having a recess in the London talks shortly and
calling Mr. Stassen home for consultation?

A. Well, I think that they have reached a point
there where it may be appropriate that he should
come back again. There have been put forward,
[ think, a total of 15 different proposals; they
have gone through their agenda; and I think that
it is possible that a stage has been reached to make
it desirable for Governor Stassen to come back
again. There has been no final decision reached
in that respect — probably there will not be for
a day or two — but that is one of the things being
thought about.

Q. Mr. Secretai^, just for clarification, are yoii
saying that the reunification for Germany is still
a prime condition for consideration of any se-
curity arrangement in Europe?

A. I said that we would not deal with disarma-
ment in Europe in any way which could bear upon
the reunification of Germany unless we were in
that respect working in close cooperation with
Chancellor Adenauer and the Federal Eepublic.

Q. Does that ride out that pilot area for central
Europe that has been discussed as a test for in-
spection and other devices for security?

A. Well, as I said in answer to an earlier ques-
tion, we do not exclude the possibility of having
such a zone in Europe. If there is sucli a zone in
Europe, it would have to be worked out in co-
operation with Nato, with the Federal Republic.
There are very considerable complications about
that, so that in line with the policy which I enun-
ciated in my New York speech of a month or so
ago,^ where I said that progress will probably
have to be taken by steps, carefully measured and
carefully taken, it may be that that is not the best
place to start because of the complications.

Q. Mr. Secretary, you gave a priority to the
Far East as a possibility. Is the United States
willing to accept or negotiate on the Russian pro-
posal for opening part of Siberia in exchange for
Alaska and the United States west of the Missis-
sippi?

' Bulletin of May 6, 1957, p. 715.
June 3, 7957

A. Well, I wouldn't want to try to define here
what the area would be, because we have not yet
had the consultations here in our own Govern-
ment which would lead to any conclusions about
that. I did say that I tliought that the Arctic
areas and the less densely populated areas and the
areas whicii involve less political complications
might be an easier place to start.

Q. Because it would be bilateral or perhaps in-
cluding Canada?

A. Yes. It could be done there pretty much on
a bilateral basis with Canada, and Canada has
already indicated that it is sympathetically dis-
posed to moving along tliose lines. Furthermore,
tliose are the areas which involve to a very con-
siderable extent the potential launching sites
which might be used in an atomic war.

Q. Mr. Secretary, tvoiild that involve landing
rights for inspecting craft and other purposes?

A. Well, now, you are getting into a lot of
details. I think all of you are pretty familiar
in general with the so-called Eisenhower "open
skies" proposal. It would involve all the elements
of that plan.

Q. Mr. Secretary, several months ago you ivrote
the Justice Department ashing for legal action
against certain laws which require retailers to post
signs if they sell Japanese exports. Have you
received aiiy response from the Justice Depar't-
ment?

A. I'm sorry to say that I couldn't make a cate-
gorical answer to that. There has been no re-
sponse that I am aware of. But that does not
prove that a response may not have come in.

Question of Allowing Newsmen To Go to Red China

Q. Mr. Secretary, do you continue unswerving
in your opposition to American newsmen visiting
Red China?

A. Well, I continue to hold the position which
I have enunciated several times. Whether you
call that "unswerving" I don't know.

Q. Mr. Secr^etary, tuould you elaborate on your
point that you made in a letter to Mr. Sulz-
berger:^ that the constitutional freedom of the
press relates to publication and not to gathering
of the news?

" Arthur Hays Sulzberger, chairm.Tn of the hoard and
publisher of the New York Tinicfi.

895

A. Well, I merely say that that has been the
interpretation which has been put upon it by a
number of Supreme Court decisions.

Q. How do you relate that, sir, to the proUem
of gathering news inside of Red China? That
holds in our own covm,try for sure.

A. I don't believe I imderstand the question.

Q. Well, you say there have been a number of
court decisions or interpretations on this point.
I just wondered how you relate your point and
these interpretations to the problems of gathering
news inside of Red China. Certainly, toe coxddnt
go into a Cabinet meeting and sit down in this
country, but there might be other factors involved
outside the country.

A. Well, it has been suggested that, by reason
of the First Amendment, newspaper people in ex-
ercise of the freedom of the press have a right to
freely travel everywhere. I merely pointed out
that that is not the interpretation of the Consti-
tution which the United States Supreme Court
has adopted.

Q. Mr. Secretary, will you authorise Mr. Berd-
ing or someone to give us the citations that you
have in mind on that from the Supreme Court?

A. Yes. I will do it through Mv. Berding.
My legal adviser got tiiis up several weeks ago.

Q. Mr. Secretary, does that noto mean that you
are waiting for the newspaper fraternity to come
up with a proposal still for meeting this question
of news7nen traveling into Red China?

A. I have indicated that it is possible that the
news-gathering community might be able to de-
vise a plan sufficiently limited so that I would feel
that it could be accepted consistently with our
foreign policy objectives. A niunber of sugges-
tions have been made more or less of an individ-
ual character along those lines wliich we are
studying. Whether or not they can be reconciled
with the foreign policy objectives, and whether
or not they would bo accepted by the news-gat lier-
ing fraternity as a whole, are two questions whicli
are not yet answered but both of which are being
studied.

Q. Mr. Secretary, there has been some vwrry
expressed in editorials and, on the part of pub-
lishers that the positio7i you have taken on a con-
sfifutional question yon enunciated in your letter

to Mr. Sulzberger means in essence, since you con-
trol passports, that the American press can cover
foreign news only on the sufferance of the Secre-
tary of State. Is this a correct interpretation?

A. No, I would say it is not a correct inter-
pretation. Of course, the whole legal area as
regards passports is somewhat m doubt, and there
are pending a number of cases in the courts
which, if they go up to the Supreme Court, will
probably lead to some authoritative decision as
to just what the f mictions and responsibilities of
the Secretary of State are as regards passports.
And whether or not it will be held that there is
a right to travel everywhere which is superior to
foreign policy, I don't know. If the courts so
decide, naturally I will accept such a decision.
But as long as it is the practice, and so far as it is
consonant with judicial opinions, to hold that the
issuance of a passport involves foreign policy
considerations — so long as that is the case, I will
have to exercise my authority in accordance with
what I judge to be the interests of the United
States.

Q. Would you like to see a court test made of
that, sir?

A. Yes.

Q. Mr. Secretary, if you can control the sourcex
of news, of what value is the right of publication,
since you have nothing to publish? Isrut that the
position you are taking? Isn't that the classic
way to stop the publication of news?

A. No, I would not say so. There are ample

ways of gathering news without sending Ameri-
can correspondents with American passports into
areas wliere that would involve a conflict with the
United States foreign policy. There is no dif-
ficulty now in collecting news from China. Any-
body can send anybody there, if they don't have
a United States passport. That is no obstacle to
collecting news, because there are plenty of people
wlio can go there and do go there, and, in fact,
their news comes out.

Q. Sir, do you mean from that an American
citizen is free to go there as long as he doesn^t take
an American passport?

A. No. Non-Americans.

Q. Does that mean you loould have a national
of some other country go over to cover it for
the U nit ed States press?

896

Department of State Bulletin

A. That is entirely possible, yes. You see, the
difficulty is, among others, that Americans and
the rights of i\jnericans are so flaunted by Chi-
nese Communists that it is extremely disadvan-
tageous from our standpoint to have Americans
to continue to go there. There is no respect for
the rights of Americans in China, and to have
more Americans go there when the rights of
Americans already there are being grossly vio-
lated is, I think, an unwise policy from our
standpoint.

Q. Mr. Secretary, do you consider it possible or
desirable for a foreigner to cover news for Ameri-
can news sources?

A. No, I don't think it is as desirable, but in
these matters you have got to strike a balance of
convenience.

Q. Mr. Secretary, doesn't your policy amount
to using newsmen as a weapon to force the Red
Chinese to do what loe want them to do?

A. It is I think a policy which is designed to
secure respect for American citizens, American
lives, and the American passport throughout the
world.

Q. To put it another way, sir: Is it not true
that your policy amounts to making the press, the
American press, an instrument of American
foreign policy?

A. No. Because our policy applies not only to
the American press but to all Americans.

Q. Mr. Secretary, could I ask you an ethical
point on this? Would it be correct to infer from
what you have said that we would not be violat-
ing the spirit of your regulations if we were to
employ a foreign national to cover news in Com-
munist China?

A. That is quite right, because the United
States Government has no responsibility for the
welfare and safety of the national of another
country. Our responsibility is to protect Ameri-
cans wherever they go, and there is no American
that can even waive that right. That is a right
which inheres in the Nation. And it is not con-
sistent, I think, with the dignity and respect for
this Nation and its citizens to have them go with
American blessing and an American pa.ssport into
an area where already the Americans that are
there are being abused, mistreated, in violation
of the ordinary code of civilized countries. And

until and imless the Chinese indicate a different
policy in that respect, we do not favor sending
more Americans there.

Now there are many other reasons. When I
talk about this subject, I am often charged with
being inconsistent, because there are so many rea-
sons and if I don't give them all at one time then
they say that I am always shifting my ground.
Well, there are a good many reasons. If I gave
them all, it would take a speech of considerable
length — longer than this press conference.

Q. Mr. Secretary, are you saying then that if
the Red Chinese release the Americans they now
hold, you 7night change your mind about letting
newsmen go to China?

A. Yes. If the Chinese Communist authorities
showed respect for American citizens and treated
them decently, we would certainly take a new look
at the situation.

Q. Is it not inconsistent, sir, to take the general
stand that you have and then to say that you
xoould be willing to allow some American news-
men to go under a restricted policy? How do
you jibe those tioo things?

A. Well, sometimes you know in life it is not
possible to be absolutely logical in everything that
you do. And I think, if it was clearly put on an
experimental basis to see how it worked with a
strictly limited number of people, that that, while
it is not entirely logical, is a chance that we would
be willing to take out of deference to the strong
views of the news-gathering fraternity that they
should be allowed to gather news through Amer-
ican citizens rather than through citizens of an-
other country. I admit that it is not strictly log-
ical, but there are some cases where pure logic has
to give way before a measure of compromise.

Q. Mr. Secretary, developments in the last few
days, both here and abroad, seem to be pushing
the Algerian question back into the forefront. Is
there anything you could say about the situation
in Algeria?

A. No, I have nothing particular to say. I dis-
cussed it a little bit when I was in Paris last week
with Prime Minister Mollet and Foreign Minister
Pineau, and they described the situation to me as
they saw it, and we have the reports of our own
people. The situation does not seem to be
clarifying.

June 3, ?957

897

Q. Mr. Secretary, as you knoiv, over the week-
end there was made public a rather dramatic ap-
peal by Messali Hadji to President Eisenhower
to speak out agairist French atrocities in Algeria,
and, as a group of Arab envoys are coming to see
you here later in the loeek on the same issue, do
you think there is anything we can do about that
situation?

A. Well, I don't know th.at there is. We are
waiting to see, of course, what these gentlemen
have to bring to us and wouldn't want to antici-
pate the result of their visit.

Q. Mr. /Secretary, President Rhee of South
Korea has indicated that the United States has
assured him that modem weapons toill be sent to
Korea. Could you say if this means the United
States is considering altering the Armistice
Agreement with the Chinese Communists or the
North Koreans?

A. The Armistice Agreement has to be inter-
preted, I think, in a realistic way. It was made
nearly 5 years ago, presumably for a brief dura-
tion, and called for a replacement of weapons only
on a piece-by-piece basis of comparable quality.
Well now, in the passage of that 5 years much of
the stuff that was there is no longer made, has
become obsolete. Therefore, it is not practical
to replace it exactly on a like-for-like basis, and
there must be some elasticity there. Further-
more, we have good evidence that the Chinese
Communists from their side are introducing
weapons, planes into the area upon a basis which
does not involve by any means a strict or reason-
able compliance with the Armistice Agreement.
Under those circumstances we are considering in-
troduction of more modern, more effective weap-
ons ourselves into the Republic of Korea.

Rights of Israel In Suez Canal

Q. Mr. Secretary, the Government of Israel
has announced its intention to send a test ship
through the Suez Canal. Is the Government of
Israel consulting with the United States Gov-
ernment on this matter, and ichat is the United
States policy toith regard to this plan?

A. We are not officially advised of any such
plan, and therefore we have no official policy with
respect to that particular plan. You Icnow the
views which the United States has always held
with respect to the right of access to and through

the canal by the vessels of all nations in accord-
ance with the 1888 convention.

Q. Does that imply, Mr. Secretary, that the
United States would support such a test plan?

A. Support it — in what way do you mean?

Q. Well, you woidd not disapprove of their

testing their rights to go through there under the

1888 convention?

I

A. It is hardly up to us to tell another govern-
ment not to exercise what they believe tlieir rights
are and not to test them out. Certainly we would
not oppose their testing out their rights if they
think that is in their interest. We would, of
course, oppose any attempt to settle the matter by
force or acts of war.

Q. Mr. Secretary, would you disapprove of any
action which would oppose the passage of Israeli
ships through the canal?

A. Well, we have already made clear that we
think the ships have a right to go through. \

Q. Tou loould disapprove of any action by
Egypt to block an Israeli ship from passing
through?

A. We would certainly not approve. When
you say "disapprove," I don't know whether
you are asking wliether we are going to make a
public declaration on the subject or not. We don't
generally express ourselves in terms of approval
or disapproval of the acts of other countries un-
less our own interests are somewhat involved.

International Atomic Energy Agency

Q. Mr. Secretainj, Senator Russell and others
have said that they are going to do everything
they can to defeat the President's atoms-for-
peace plan since Russia and some other countries
have already accepted that. Could you say to
what extent it will embarrass us if it is not ratified
here?

A. It would, I think, be a rather serious blow
to the international leadership of tlie United
States in the field of humanitarian effort if our
leadership in this respect were rejiudiatcd. This
particular project is one which has caught the
imagination of the peoples of the world because
it does turn this possibility of a destructive
weapon into peaceful chamiels and it provides
safesruards against the abuse of this material —

898

Department of State Bulletin

against its being used in ways that are injurious to
health and the like. The nations of the world
have welcomed and followed this. The Soviet
Union tried to block it for nearly 2 years. But
the pressures for it were so gi'eat that they finally
reversed their position and are now trying to
move in and give a kind of leadership. I think
it would be a very great misfortune if this project,
launched under American auspices, wei'e to fall
by the wayside.

Q. Mr. Secretary^ on that point Senator Rus-
sell., who should he very well informed since he is
the chairman of the Armed Services Comtnittee^
has said flatly on a teld(vision program that this
atoms- fo)'-peace plan is bad for the United States.
Is the administration taking any action to try to
change the opinion or to convince these gentlemen
on the Hill?

A. Yes, I was up there as a witness testifying
last week,^ and I think that Admiral Strauss and
Ambassador Wadsworth are up there testifying
this morning.

Disarmament

Q. Mr. Secretary, going hack to the disarma-
ment talks in London, so many different kinds of
questions have been discussed that I think it
would be useful if you could give us your own
personal estimate of where we are in these talks
and what are the critical areas of negotiation at
the present time?

A. I think the critical aspect of the matter con-
tinues to be, as it has always been, the possibility
to devise and gain acceptance of a system of in-
spection and control. Now we know through long
experience that the promises of the Communists
are not dependable. There is a long list which can
be given. Now those promises in the past that we
have taken from them have not involved our re-
lying upon them in ways that put in jeopardy the
very existence of the United States itself. Wlien
it comes to this field of armament, then, to rely
upon unverifiable promises would be, I think, an
act of very gross negligence on the part of any
government. We do not intend to weaken the
United States militarily merely in reliance on the
promises of others which cannot be verified. So
we are back again at the old question, can it be
verified ?

» See p. 878.

Now the President put forward his aerial in-
spection proposal to be accompanied by ground
patrols and blueprints. Now that proposal was
originally rejected as a matter of principle by the
Soviet rulers, who said it would be merely an in-
telligence and spying operation. Now at least
there has been a change to the extent that instead
of discussing whether or not there would be such
inspection they accept it in principle and tlie de-
bate now is where will there be such inspection.
That, I think, marks a certain measure of prog-
ress. It still may be merely a diversionary exer-
cise on tlie part of the Soviet, but there is some
evidence to suggest that it does involve a genuine
change on their part. So now we get into the
question of discussing areas where that can be
tried out. As I indicated, we have reached no
goverimiental decision yet at all as to areas which
would be acceptable to us, nor do we know what
would be acceptable to the Soviet except as we in-
ferred from the proposals which they made a lit-
tle while ago, on April 30, I think.

In general it would seem to me, and this is, you
might say, a State Department viewpoint which
has not yet been coordinated with that of all the
other departments, but it is primarily our respon-
sibility to watch the political aspects of this mat-
ter and we see a good many political pitfalls in
trying to start out this experiment in Europe
where you run into a great many problems such
as the reunification of Germany, problems of
Nato, the neutralization of some states such as
Austria and Switzerland, and so forth. If we are
going to take the steps, as I said in my speech,
steps carefully measured, carefully taken, care-
fully calculated, if we are going to do it that way,
the most likely place to get started may be in
areas which are sparsely populated and don't in-
volve many countries and no great political com-
plications. That is just the tentative line of our
thinking. We have not yet reached any conclu-
sion as to drawing lines on a map as to just what
the area would be under that test, nor do we have
any reason to believe that tlie Soviet would accept
our ideas, but we are, I think, at a point where
there could be a fruitful discussion of what is an
essential element of the matter.

I believe that, if you could get inspection of cer-
tain areas that worked, and if those were the areas
likely to be principal staging areas for attack,
there woidd be a relaxation of fear in this matter

i»ne 3, 1957

899

which would then make it easier, almost inevi-
tably, that there should be reduction of other
types of armament.

Q. Could I ask whether you regard this has
proceeded far enough so that you might yourself
take part in a foreign ministers'' discussion of the
matter?

A. Well, I have not given much thought to
that. I observed, I think, that Mr. Khrushchev in
his interview with Mr. Catledge * did not seem to
be very enthusiastic about the prospects about a
conference between Mr. Gromyko and myself, and
I don't look forward to it either with any great
enthusiasm. (Laughter)

Q. Mr. Secretary, when you said earlier, if I
caught it correctly, that Governor Stassen was not
authorized to state American policy, if that is
what you said, xoere you in any way repudiating
the proposals which he put forward at London
which, as loe understand it, did include the sug-
gestion of a zone of inspection in the Far East
and one in Europe?

A. No, I am not repudiating those. I thought
that the question related to the more recent devel-
opments of that matter as to which there is not
yet any firm U.S. policy, so that neither he nor
anybody else is in a position to put it forward.

Q. But the initial proposals put forward were
official government proposals?

A. That is correct.

Q. Mr. Secretary, aren't the skies practically
open to inspection due to the scientific exchange
between Russia and the United States over
Siberia and Alaska in the International Geo-
physical Year? There is, as I understand, ex-
change of planes between Murmansk and Nome,
as I recall.

A. Well, I don't think that that has ever
worked out. There was a suggestion once ; it was
made at a more or less scientific level, and we
were anxious to dev*lop that, but I think that
then the Soviets rather withdrew from it.° That
is my impression.

'Turner Catledge, managing editor of the New Xorlc
Times, had a personal interview with Mr. Khrushchev on
May 10.

° For text of Soviet note, see Bulletin of Dec. 17, 1956,
p. 953.

Q. Mr. Secretary, when you talk about inspec-
tion at least in some trial area, are you talking
about the need for aerial, ground, and also blue-
print exchange as a minimum condition for us,
or would we be willing to just settle on one of
those, hoping to eventually reach the stage where
we would have to have all three?

A. Well, I think that the question of the aerial
inspection and the blueprints is certainly quite
indispensable and the question of ground patrol
would depend a good deal upon what was the
area which you were dealing with.

Q. Mr. Secretai^, xohen you referred in your
answer a moment ago to the latest developments
in the London talks and the firming up of U.S.
policy, did you mean practically an American
response to the Soviet proposal on the Siberian
issue?

A. As I said, there have been a number of pro-
posals put forward — so many it is hard to keep
track of them all — a total of 15. The most sig-
nificant is the Soviet proposal, I think dated
April 30.

Q. Mr. Secretary, when you turn over blue-
prints of the Arctic that would involve, would it
not, looking over blueprints of the distant warn-
ing sites? Are yoxi prepared to do that?

A. Well, I can't answer that.

Q. Mr. Secretary, in your mind are the Ger-
man reunification and any disarmament reached
in Europe, still the two factors that must be re-
solved at the same time, pretty closely related?

A. I think it is very difficult to work out an
effective and dependable limitation of armament
arrangements for Germany whicli is not con-
nected somewhat with the reunification of Ger-
many. As I indicated before, our views in that
respect would be very largely influenced by the
views of the German authorities themselves, par-
ticularly Chancellor Adenauer. I don't say it is
impossible, but I would think that their judgment
would carry a great deal of weight in that matter.

Q. I teas thinking more of a general disarma-
ment in Europe. Is that in your mind linked
with the problem of German reunification? In
other words, would ive reach a limited disarma-
ment agreement with the Russians without at the
same time insisting some progress be made on the
German problems?

900

Department of State Bulletin

A. Well, that again I don't want to answer
without consultation with the Germans. I think
their views are entitled to a great deal of weight.

Q. Mr. Secretary f in reply to a question a
moment ago about the equating of Alaska and
the United States west of the Mississippi with
the Siberian area of Russia, you didnH eliminate
the United States west of the Mississippi. I was
wondering if you do equate them or if you meant
to ignore that.

A. I would say I do not equate the United
States west of the Mississippi with Siberia.

United States Recognizes
Provisional Government of Colombia

Press release 299 dated May IT

The Department of State on May 17 informed
the Colombian Embassy, in reply to notes received
from the Colombian Ambassador, that the Mili-
tary Junta is recognized as the provisional Gov-
ernment of Colombia.

Euratom Committee Issues
Report on Power Target

Press release 273 dated May 7

The Department of State is pleased to note the
publication on May 7 of the report A Target for
EURATOM, which has been issued by a com-
mittee appointed by the Governments of Bel-
gium, France, Germany, Italy, Luxembourg, and
the Netherlands, which recently negotiated the
treaty for a European atomic energy community
(EtJRATOM).^ The issuance of this report repre-
sents another concrete step in the development of
the European atomic energy community and as
such is welcomed by the United States.

It is noted that the nuclear power target for
Ettratom for 1967 has been set at 15 million kilo-
watts. As was stated in the joint communique
issued in February of this year by the Depart-
ment, the Atomic Energy Commission, and the
Euratom committee representing the six govern-
ments at the end of their visit to the United

' Copies of this 24-page report are available at no
charge from the Information Office of the European Com-
muuity for Coal and Steel, 220 Southern Building, Wash-
ington 5, D. C.

States,^ this Government regards this bold and
imaginative program as feasible and further
noted that the availability of nuclear fuel should
not be considered a limiting factor. At the invi-
tation of this group a technical team from the
U.S. Atomic Energy Commission has been in
Luxembourg to examine the technical problems
posed by the nuclear power target set forth in the
May 7 report.

Final Date Fixed for Filing

War Damage Claims Against Italy

Press release 293 dated May 16

In a recent agreement concluded by the United
States and Italy for the purpose of expediting
the settlement of claims under article 78 of the
treaty of peace with Italy for losses or damage
to property in Italy as a result of World War II,
June 28, 1957, has been fixed as the final date for
the presentation of such claims to the Govern-
ment of Italy by citizens of the United States.
Claims should be filed directly by the claimant
or his representative with the Ministero del
Tesoro, Raggionerie dello Stato Ufficio Beni Al-
leati e Nemici, Via Tor Fiorenza, 35, Rome, Italy.

Under the terms of the treaty of peace with
Italy it is required, in general, that a claimant
must have possessed citizenship of the United
States or have been a United Nations national on
September 3, 1943, the date of the armistice with
Italy, and also on September 15, 1947, the date
the treaty of peace entered into force.

U. S. Replies to Japan on Atom
and Hydrogen Bomb Tests

Following are two exchanges of notes between
the United States and Japan on the subject of the
testing of atom and hydrogen bombs.

CORRESPONDENCE ON JAPANESE DIET
RESOLUTION

U. S. Note of April 27

The Secretary of State presents his compli-
ments to the Charge d'Affaires ad interim of
Japan and refers to the Embassy's note dated

' BtTLLETiN of Feb. 25, 1957, p. 307.

June 3, 7957

901

March 20, 1957, transmitting the resohition of
the House of Councilors of the Japanese Diet urg-
ing the use of atomic energy exclusively for peace-
ful purposes and the prohibition of atomic and
hydrogen bombs, and expressing the desire of the
Government of Japan that the fullest consider-
ation of the United States be given to the earnest
desire of the Japanese people so expressed in the
resolution.

The Government of the United States is deeply
and urgently concerned with the problem of safe-
guarded control and reduction of armaments, in-
cluding nuclear weapons. To this end, the
United States is now engaged in detailed negotia-
tions through the United Nations Disarmament
Subcommittee with representatives of Canada,
France, the United Kingdom and the U.S.S.R.,
and has introduced important new proposals for
consideration by this body. A vital element of
these proposals is directed toward limiting and
eventually eliminating all nuclear weapons test-
ing when adequately inspected controls over future
production of fissionable materials and begin-
nings in the reduction of existing stockpiles of
such materials have been achieved. As a first
step, the United States has endorsed the pro-
posed resolution on advance registration and lim-
ited international observation of tests co-spon-
sored by the Governments of Japan, Canada and
Norway in the recent discussions of the United
Nations General Assembly. This endorsement
was reaffirmed in the communique issued follow-
ing the recent talks at Bermuda.^ The United
States shares the hope of the Government of
Japan that such measures may serve as an open-
ing step toward wider and more effective meas-
ures to reduce the nuclear threat as a whole.

The United States will continue its active
search for effective means of bringing about con-
trol of this threat. It reaffirms its belief that an
effective system of safeguards and controls can bo
established. This goal has thus far not been
achieved, however, because the U.S.S.R. has been
unwilling to accept the safeguards essential for
its fulfillment. In the absence of an effective
agreement regarding the control and disposition
of fissionable materials, the United States is
obliged, in the interests of free world security, to
use portions of its fissionable materials to de-
velop and refine its nuclear weapons as the chief
deterrent to aggression and war. International

' Bulletin of Apr. 8, 1957, p. 561.

agreement to abandon tests without adequate
safeguards would involve a reliance upon the
good intentions of certain nations who, by tlieir
record of past action, do not warrant such re-
liance.

The United States, under the leadership of
President Eisenhower, has taken the lead in pro-
moting the peaceful uses of atomic energy. It
also has been instrumental in promoting scientific
studies in this field. In this regard, the United
States is cooperating fully with the Scientific
Committee of the United Nations, of which
Japan is a member, in seeking to pool and dis-
seminate data on the effects of ionizing radiation
on human health. The United States has sup-
ported independent studies which have concluded
that the present rate of atomic weapons testing
has not raised world-wide radiation to biologically
dangerous levels. At the recent Bermuda Con-
ference, the United States pledged itself pub-
licly to conduct testing "only in such a mamier as
will keep world radiation from rising to more
than a small fraction of the levels that might be
hazardous". That pledge is hereby renewed to
the Government and people of Japan.

Japanese Note of March 20

The Ambassador of Japan presents his compliments to
the Honorable the Secretary of State and, under instruc-
tions from his Government, has the honor to inform the
Secretary that the House of Councilors of the Diet in its
plenary session on March 15, 1957 unanimously adopted
a "Resolution on Prohibition of Atom and Hydrogen
Bombs". The English translation of the Resolution is
enclosed herewith.

With reference to the above Resolution, the Ambassa-
dor has further the honor, under instrue-tious from his
Government, to state as follows :

1. This Resolution is based upon the earnest desire
of the .Japanese people, who have experienced the ravages
of nuclear weapons more than any other people, to seek
a true peace.

2. The Government of Japan transmits the Resolution
in the desire that the Government of the United States
would be good enough to give it its fullest considera-
tion.

Enclosure: Englisli translation of Resolution

Embassy of Japan,

Washington, March 20, 1957.

RESOLUTION OF THE HOUSE OF COUNCILLORS
ON PROHIBITION OF ATOM AND HYDROGEN
BOMBS.

It is resolved that :

This Hou.se adopted sometime ago a "Resolution on In-
ternational Control of Atomic Weapons" and a "Resolu-

902

Department of State Bulletin

:ion on Prohibition of Atomic and Hydrogen Bomb Tests"
■equesting the United Nations and the Powers concerned
to take appropriate measures. It is to be deeply regretted,
tiowever, that no steps have yet been taken for the in-
ternational control of atomic energy but atom and hydro-
gen bomb tests continue to be conducted either with or
(vithout previous notice and that the United Kingdom
Government is now preparing to carry out new tests
around Christmas Island notwithstanding the repeated
protests from the Japanese Government.

This House hereby urges again that the United Na-
tions and the Powers concerned take speedily effective
and appropriate measures for limiting the use of atomic
energy exclusively to peaceful purposes and for the total
prohibition of production, use and testing of atom and
hydrogen bombs ; and in view of the reasonable fear that
if things are left as they are today the amount of fall-out
from nuclear explosions may increase to the point of ir-
remediably affecting human life, calls for solemn reflec-
tion on the part of the United Kingdom, the Soviet Union
and the United States of America and requests these
powers to suspend all atom and hydrogen bomb tests now
under contemplation, regardless of whether they are to
be held with previous notice or not.

CORRESPONDENCE ON NEVADA TESTS

Preea release 2S6 dated May 13
U.S. Note of May 13

The Secretary of State presents his complunents
to the Charge d'Affaires ad interim of Japan and
refers to his note No. P. 69 dated April 29, 1957,
transmitting the request of the Government of
Japan that the Government of the United States
give renewed consideration to the views of the
Japanese people concerning testing and, in par-
ticular, the forthcoming United States tests to be
conducted in the State of Nevada.

The Government of the United States wishes
first to reassure the Government and people of
Japan that the forthcoming Nevada tests will be
conducted in such a mamier as not to result in any
significant addition to radiation levels throughout
the world. The tests will be of low-yield fission
devices and will be made only when weather con-
ditions are the most favorable. The concern that
the Government of the United States has for the
health and well-being of its citizens, as well as of
all humanity, will be reflected in the extreme
safety measures that will be taken with respect to
each test in the test series.

The Government of the United States reaffirms
its sympathy for the desire of the Japanese people
that the use of nuclear energy be limited exclu-

sively to peaceful purposes and that all nticlear
weapons tests be suspended. These objectives are
ones that the Government of the United States
has been seeking to attain since 1946. The most
recent United States proposals to these ends were
contained in the statement made on January 14,
1957, in the United Nations General Assembly by
the United States Delegate.^ Tliese proposals
have since been presented and vigorously sup-
ported before the United Nations Disarmament
Subcommittee now meeting in London. The
United States has made clear in these proposals
that it is ready to limit and eventually cease nu-
clear testing, provided that the present trend to-
ward the increase in nuclear weapons stockpiles is
halted and the reduction of such stockpiles is be-
gun in accordance witli specific arrangements
which include adequate safeguards. By its re-
peated rejection of United States' disarmament
proposals, the Government of the Union of Soviet
Socialist Republics has obstructed progress to-
ward control of the nuclear threat and the ending
of nuclear weapons tests.

In the absence of adequately inspected agree-
ments for the control and reduction of armaments,
the Government of the United States has a re-
sponsibility to its people — as well as to the rest of
the free world — to strengthen its defensive and de-
terrent capabilities and thereby contribute to the
maintenance of peace. History has repeatedly
demonstrated that one-sided weakness leads to
war. It is for the purpose of deterring aggression
and preserving the peace, therefore, that the Gov-
ernment of the United States feels that it must,
under present circumstances, conduct nuclear tests.
Until such time as the suspension or cessation of
tests is achieved, the Government of the United
States would willingly cooperate with other coun-
tries in a system of registering nuclear tests with
the United Nations in pursuance of the proposal
co-sponsored by the Governments of Japan, Can-
ada, and Norway at the recently concluded session
of the United Nations General Assembly. In ad-
dition, the Government of the United States is
liopeful that agreement can be reached on its pro-
posal for the limited international observation of
nuclear tests. In advance of such agreements, the
Government of the United States has of its own ac-
cord announced its test series and invited observers
from a number of countries to attend.

= Ihid., Feb. 11, 1957, p. 225.

June 3, 1957

903

In proceeding with the Nevada tests, the Gov-
ernment of the United States reaffirms its pledge
that these tests will be conducted under the most
stringent safety precautions and without increas-
ing world radiation to more than a small fraction
of the level that could be considered biologically or
medically harmful to the people of the world.

Japanese Note of April 29

The Chargg d' Affaires ad interim of Japan presents his
compliments to the Honorable the Secretary of State and
has the honor, under instructions from his Government,
to refer to the announcement of the United States Atomic
Energy Commission dated April 3, 1957 to the effect that
nuclear tests are scheduled to begin on or about May 15,
1957 in the State of Nevada, and to forvrard hereby the
request of the Government of Japan concerning the above
tests.

With reference to the nuclear tests conducted at the
Eniwetok Atoll during the period from April to July 1956,
the Ambassador of Japan transmitted in his notes dated
February 14' and May 4, 1956," respectively, the request
of the Government of Japan based upon the earnest and
sincere desire of the Japanese people, that the Government
of the United States of America suspend the tests. Fur-
thermore, the Ambassador transmitted, vpith his note of
March 20, 1057, the Resolution of the House of Councillors
of the Japanese Diet dated March 15, 1957 requesting the
cessation of all atom and hydrogen bomb tests.

As is clearly shown in those requests, the Japanese
people strongly wish to see the use of atomic energy
limited exclusively to peaceful purposes and the sus-
pension of all nuclear tests. This wish is animated
solely by hiunanitarian considerations, in view of the
fact that nuclear tests, by their very nature, may expose
mankind to great danger, regardless of where such tests
are held.

The Japanese people feel the same apprehension and
express the same earnest desire with regard to the nu-
clear tests scheduled to be held shortly by the United
Kingdom Government at Christmas Island and also with
regard to the reiieated tests recently carried out without
previous notice by the Soviet Union in its territory. In
this connection the Government of Japan has already
made strong representations to the United Kingdom and
Soviet Governments that they suspend the carrying out
of these tests.

The Charge d'Affaires has further the honor to inform
the Secretary that the Japanese people feel a deep con-
cern over the nuclear tests to be conducted in Nevada
after May 15 as indicated in the above-mentioned an-
nouncement of the Atomic Energy Commission, and to
forward hereby the request of the Government of Japan
that the United States Government would be good enough
again to give its careful consideration to the desire of
the Japanese people, prompted by humanitarian motives,
concerning the prohibition of nuclear tests, as expressed

in the repeated representations to the United States Gov-
ernment referred to above.

Embassy of Japan,

Washington, April 29, 1957.

Fees for Special Clearance
on Passports Reduced

Press release 269 dated May 6

A reduction in fees for special clearance on
passport applications has been announced by the
Passport Office of the Department of State.
These reductions are effective May 6, 1957. The
fees, collected from passport applicants for spe-
cial expeditious service involving wire clearance
of applications, are reduced in accordance with
the following schedule:

City

New fee

Boston . . .

Chicago . .
New Orleans
San Francisco
Los Angeles .

' Not printed.

The new, reduced fee of $2 for wire clearance
from San Francisco and Los Angeles is applicable
to urgent and priority cases only. Routine cases
are handled on overnight TWX service and will
continue at the present rate of $1. The New York
fee remains at $1.

Frances G. Knight, Director of the Passport
Office, attributes these reductions to economies
effected through larger volume of clearances by
teletype and consequent lower unit cost. This is
one of the first direct savings effected in the past
year to passport applicants resulting from the
modernization of the Passport Office.

Designations of areas serviced by San Francisco
and Los Angeles Passport Agencies have been
made which permit more expeditious passport
service for residents of certain "Western states and
the Territory of Alaska whose proposed depar-
ture from the United States is 4 weeks or less
from the date upon which they apply for pass-
ports.

In facilitating the granting of passports in such
cases, the Passport Agencies at San Francisco and
Los Angeles have been assigned to service the
following areas comprising the States of Arizona,
California, Idalio, Montana, Nevada, Oregon,
Utah, Washington, and tlie Territory of Alaska.

904

Department of State Bulletin

San Francisco Passport Agency: Alaska, Cali-
fornia (all counties north of and including Mon-
terey, Kings, Tulare, and Inyo), Idaho, Montana,
Nevada, Oregon, Utah, and Washington.

Los Angeles Passport Agency: Arizona, Cali-
fornia (all comities south of and including San
Luis Obispo, Kern, and San Bernardino), and
Nevada (Clark County only).

Administration of Agricultural
Trade Development Act

WhJte House press release dated May 6
WHITE HOUSE ANNOUNCEMENT

The President on May 6 signed an Executive
order further providing for the administration
of the Agricultural Trade Development and As-
sistance Act of 1954. The order amends Execu-
tive Order 105G0 of September 9, 1954.^

Under the May 6 order the U. S. Information
Agency is designated to use foreign currencies,
accruing through sales of agricultural commodi-
ties under the act, to finance the translation, pub-
lication, and distribution of books and periodi-
cals abroad. This use of foreign currencies is lim-
ited to $5 million a year.

The order also authorizes the Department of
State and the U.S. Information Agency to use
foreign currencies, accruing under the act, to pro-
vide assistance to schools, libraries, and commim-
ity centers abroad, founded or sponsored by citi-
zens of the United States and serving as demon-
stration centers for methods and practices em-
ployed in the United States.

Tlie 1956 amendments to the act authorized the
use of foreign currencies for the above purposes,
in addition to various other uses previously au-
thorized.

The order also makes certain procedural sim-
plifications, relating prhnarily to the allocation
of foreign currencies for certain other purposes
for which these currencies may be used imder the
act.

EXECUTIVE ORDER 10708:

FURTHER PROVIDING FOR THE ADMINISTRA-
TION OF THE AGRICULTURAL TRADE DEVEL-
OPMENT AND ASSISTANCE ACT OP 1954, AS
AMENDED

By virtue of the authority vested in me by section 301
of title 3 of the United States Code, and as President of
the United States, and in order to further provide for
the administration of the Agricultural Trade Develop-
ment and Assistance Act of 19.54, as amended, Execu-
tive Order No. 10560 of September 9, 19.54, as amended,
is hereby further amended as follows :

1. Section 4(a) is amended by striking therefrom
"paragraphs (a) to (h), inclusive" and by inserting in
lieu thereof "paragraphs (a) to (f), inclusive, and (h)
to (j), inclusive."

2. Paragraph (3) of section 4(d) is amended to read
as follows :

"(3) Those under section 104(c) of the Act by the
Department of Defense or the Department of State, as
those agencies shall agree, or in the absence of agree-
ment, as the Director of the Bureau of the Budget shall
determine."

3. Paragraph (4) of section 4(d) is amended by add-
ing at the end thereof the following:

"The amounts of foreign currencies which accrue under
Title I of the Act to be used for the loans described
in paragraph (g) of section 104 of the Act shall be the
amounts thereof specified, or shall be the amounts
thereof corresponding to the dollar amounts specified, for
such loans in sales agreements entered into pursuant to
section 3(a) of this order."

4. Section 4(d) is further amended by adding at the
end thereof the following paragraphs :

"(7) Those under section 104 (i) of the Act by the
United States Information Agency.

"(8) Those under section 104(j) of the Act by the
Department of State and by the United States Informa-
tion Agency in accordance with the division of respon-
sibilities for the administration of section 203 of the
United States Information and Educational Exchange
Act of 1948 (62 Stat. 6) provided by Reorganization
Plan No. 8 of 19.53 (67 Stat. 642) " and Executive Order
No. 10477 of August 1. 1953,' and by subsequent agree-
ment between the Department of State and the United
States Information Agency."

^_J Cjl»-^ t.'€~Z^(u-<.L^ A^i-o.^

The White House,
May n, 1957.

'Bulletin of Oct. 4, 1954, p. 501.

' 22 Fed. Reg. 3213.

' Bulletin of June 15, 1953, p. 854.

* Ibid., Aug. 24, 1953, p. 238.

June 3, 1957

905

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Calendar of Meetings'

Adjourned During May 1957

U.N. Trusteeship Council: 19th Session New York. Mar. 14-May 16

U.N. Disarmament Commission: Subcommittee on Disarmament . . London Mar. 18-May 15

U.N. Economic and Social Council: 23d Session New York Apr. 16-May 3

Inter-American Commission of Women: Technical Experts and Ad- Mexico, D. F Apr. 20-May 1

ministrative Heads of Women's Labor Bureaus.

9th Session of FAO International Poplar Commission; 6th Session of Paris Apr. 22-May 1

International Poplar Congress.

ICAO Legal Committee: Subcommittee on Hire, Charter, and Inter- Madrid Apr. 24-May 3

change of Aircraft.

9th ILO International Conference of Labor Statisticians Geneva Apr. 24r-May 4

2d European Civil Aviation Conference Madrid Apr. 24-May 11

IAEA Cfommittee of the Whole: 2d Session New York Apr. 25-May 3

Inter-American Presidential Representatives: 3d Meeting Washington Apr. 29-May 8

U.N. Economic Commission for Europe: 12th Session Geneva Apr. 29-May 15

ITU Administrative Council: 12th Session Geneva Apr. 29-May 25*

U.N. ECOSOC Narcotic Drugs Commission: 12th Session New York Apr. 29-May 31

South Pacific Commission: Conference on the Review of the Com- Canberra Apr. 30-May 8

mission.

International Commission on Irrigation and Drainage: 3d Congress . San Francisco May 1-4

NATO Council: Ministerial Meeting Bonn May 2-3

10t.h International Cannes Film Festival Cannes May 2-17

U.N. Advisory Committee on Peaceful Uses of Atomic Energy: 6th Geneva May 6-8

Session.

FAO Technical Meeting on Soil Fertility for Latin America .... Turrialba, Costa Rica . . May 6-11

ILO Metal Trades Committee: 6th Session Geneva May 6-18

U.N. ECOSOC Social Commission: 11th Session New York May 6-24

U.N. ECE Conference of European Statisticians: Seminar on Indus- Athens May 6-31

trial Statistics.

FAO European Forestry Commission: 9th Session Rome May 7-18

International Hydrographic Bureau: 7th Congress Monte Carlo May 7-18

WHO: 10th World Health Assembly Geneva May 7-27

Consultations With GATT Secretariat Geneva May S-15

Inter-American Travel Congresses: Permanent Executive Com- Washington May 10-15

mittee.

U.N. ECAFE Highway Subcommittee: Seminar on Highway Safety. Tokyo May 13-23

FAO Indo-Pacific Fisheries Council Bandung May 13-27

U.N. Economic Commission for Latin America: 7th Session ... La Paz May 1.5-29

International Conference for Uses of Radar in Marine Navigation . Genoa May 1()-19

International Commission for Northwest Atlantic Fisheries: Stand- Lisbon May 18—19

ing Committee on Biology and Research.

International Commission for Northwest Atlantic Fisheries: 7th Lisbon May 20-25

Meeting.

International Cotton Advisory Committee: 16th Plenary Meeting . Istanbul May 20-28

Caribbean Commission: 24th Meeting St. Thomas, Virgin Is- May 22-25

lands.

FAO Study Group on Grains: 1st Meeting Rome May 27-31

U.N. ECE Housing Committee: 14th Session and Working Parties . Geneva Mav 27-31

WHO Executive Board: 20th Session Geneva May 27-31*

In Session as of May 31, 1957

U.N. International Law Commission: 9th Session Geneva April 23-

U.N. Trusteeship Council: 20th Session New York May 20-

U.N. Trusteeship Council: Committee oB Administrative Unions . . New York May 20-

' Prepared in the Office of International Conferences, May 16, 1957. Asterisks indicate tentative dates. Following
is a list of abbreviations: U.N., United Nations; FAO, Food and Agriculture Organization; ICAO, International Civil
Aviation Organization; ILO, International Ijabor Organization; IAEA, Internation.al Atomic Energy Agency; ITU,
International Telecommunication Union; ECOSOC, Economic and Social Council; NATO, North Atlantic Treaty Organ-
ization; ECE, Economic Commission for Europe; WHO, World Health Organization; GATT, General Agreement on
Tariffs and Trade; ECAFE, Economic C^ommission for Asia and the Far East; UNESCO, United Nations lOducational,
Scientific and Cultural Organization; UNHEF, United Nations Refugee Fund; PAIGH, Pan American Institute of Geog-
raphy and History; WMO, World Meteorological Organization; PIANC, Permanent International Association of
Navigation Congresses; IBE, International Bureau of Education.

906 Department of State Bulletin

Calendar of Meetings — Continued

In Session as of May 31, 1957 — Continued

Customs Cooperation Council: 10th Session

ILO Governing Body: 135th Session

UNESCO Executive Board: 48th Session

UNREF Standing Program Subcommittee: 5th Session

Scheduled June 1-August 31, 1957

Inter-American Commission of Women: 12th General Assembly . .

U.N. ECE Committee on Development of Trade: Working Party on
Arbitration.

U.N. ECE Working Party on Transport of Perishable Foodstuffs . .

FAO Council: 26th Session

UNREF Executive Committee: 5th Session

PAIGH Directing Council: 2d Meeting

ICAO Panel on Separation of Aircraft: 2d Meeting

U.N. ECAFE Committee on Industry and Trade: 7th Sos.sion of Sub-
committee on Iron and Steel.

World Power Conference: Sectional Meeting

International Labor Conference: 40th Session

FAO Asia- Pacific Forestry Commission: 4th Session .

GATT Balance of Payments Consultations and Intersessional Com-
mittee Meeting.

U.N. ECE Steel Committee and Working Parties

U.N. ECE Inland Transport Committee: Working Party on Trans-
port of Dangerous Goods.

ILO "Art and Labor" Exposition ;,' "

ICAO Panel on Future Requirements for Turbo-jet Aircraft: 3d Meet-
ing.

International Commission for Criminal Police: 26th Session of the
General Assembly.

U.N. ECAFE Working Party on Small-Scale Industries and Handi-
craft Marketing: 5th Meeting.

U.N. ECE: 5th Conference of European Statisticians

WMO Commission for Instruments and Methods of Observation: 2d
Session.

WMO Commission for Aerology: 2d Session

FAO Desert Locust Control: 7th Meeting of Technical Advisory Com-
mittee.

7th Berlin International Film Festival

U.N. ECOSOC Coordination Committee

International Rubber Study Group: 13th Meeting ........

International Council for the Exploration of the Sea: 45th Meeting .

International Wheat Council: 22d Session

International Whaling Commission: 9th Meeting

FAO Desert Locust Control Committee: 4th Session

ILO Governing Body: 136th Session

U.N. Economic and Social Council: 24th Session

International Sugar Council: 13th Session ,' " ■,

Permanent International Association of Navigation Congresses: Annual
Meeting.

PIANC: 19th International Congress

UNESCO/IBE: 20th International Conference on Public Education .

Consultative Committee for Economic Development in South and
Southeast Asia (Colombo Plan) : Working Group on Asian Regional
Nuclear Center.

International Union of Crystallography: 4th General Assembly and
International Congress.

16th International Congress of Pure and Applied Chemistry . . . .
19th Conference of International Union of Pure and Applied Chemis-
try. . .

Latin American Seminar on Social Welfare Training

U.N. Committee on Information from Non-Self-Governing Territories:

8th Session. , . t. u, r .u

Caribbean Commission: Conference on Demographic Problems of the

Caribbean Area. . , ^, ., „ .

American International Institute for the Aotection of Childhood:

Semiannual Meeting of Directing Council.

FAO Latin American Forestry Commission: 6th Session

U.N. ECAFE Working Party on Housing and Building Materials: 5th

Meeting.
U.N. ECOSOC Technical Assistance Committee

Brussels May 27-

Geneva May 27-

Paris May 27-

Geneva May 31-

Washington lune 1-

Geiieva June 3-

Geneva June 3-

Madrid June 3-

Geneva June 3-

Rio de Janeiro June 3-

Montreal June 3-

Bangkok June 3-

Belgrade June 5-

Geneva June 5-

Bandung June 8-

Geneva June 10-

Geneva June 11-

Geneva June 11-

Geneva June 15-

Montreal June 17-

Lisbon June 17-

Madras June 17-

Geneva June 17-

Paris June 18-

Paris June 18-

Rabat June 19-

Berlin June 21-

Geneva June 24-

Djakarta June 24-

London June 24-

London June 24-

London June 24-

Rabat June 2^

Geneva June 28-*

Geneva July 2-

London July 2-

Loudon July 8-

London July 8-

Geneva July 8-

Washington July 8-*

Montreal July 10-

Paris July 16-

Paris July 16-

Montevideo July 20-

New York July 22-

Trinidad July 25-

Lima July 29-

Guatemala July 30-

Bangkok July

Geneva July

June 3, 1957

907

Calendar of TAeetlngs— Continued

Scheduled June 1-August 31, 1957— Continued

7th Pan American Highway Congress

U.N. ECAFE Subcommittee on Electric Power: 6th Session . . .

International Statistical Institute: 30th Session

4th International Conference on Soil Mechanics and Foundation
Engineering.

Universal Postal Union: 14th Congress

Economic Conference of the Organization of American States

U.N. ECAFE Highway Subcommittee: 4th Session

International Scientific Radio Union: 12th General Assembly

7th British Commonwealth Forestry Conference

9th International Congress on Cell Biology

International Union of Public Transportation: 33d Congress

International Geographic Union: Regional Conference

9th Pan American Railway Congress

Panama City Aug. 1-

Bangkok Aug. 5-

Stockholm Aug. 8-

London Aug. 12-

Ottawa Aug. 14—

Buenos Aires Aug. 15-

Bangkok Aug. 19-

Boulder, Colorado Aug. 22-

Australia and New Zealand . Aug. 26-

St. Andrews, Scotland . . . Aug. 28-

Hamburg and Berlin. . . . Aug. 29-

Nara and Kyoto Aug. 29-

Buenos Aires Aug. 30-

U.S. Delegations to
International Conferences

International Cotton Advisory Committee

The Department of State announced on May 17
(press release 295) that the U.S. Government will
be represented by the following delegation at the
16th plenary meeting of the International Cotton
Advisory Committee at Istanbul, Turkey, May
20-28 :

Delegates

F. Marion Rhodes, Chairman of U.S. Delegation, Direc-
tor, Cotton Division, Commodity Stabilization Service,
Department of Agriculture

Edwin Dean White, Chairman of Standing Committee,
ICAC, Associate Director, Office of Food and Agricul-
ture, International Cooperation Administration

Alternate delegates

Stanley Nehmer, Office of International Trade and Re-
sources, Department of State

Robert C. Sherman, Director, Cotton Division, Foreign
Agricultural Service, Department of Agriculture

Oovernment advisers

George A. Salee, Secretary of Delegation, Bureau of For-
eign Commerce, Department of Commerce

Francis II. Whitaker, Marketing Specialist, Foreign Mar-
keting Branch, Cotton Division, Foreign Agricultural
Service, Department of Agriculture

William K. von Seggern, Jr., Agricultural Attach^, Ameri-
can Embassy, Ankara, Turkey

Industry advisers

Read Patten Dunn, Jr., Director, Foreign Trade Division,
National Cotton Council of America, Wa.shington, D. C.

Adolph Klkan Hohenberg, Hohenberg Brothers Co., Mem-
phis, Tenn.

Tiie purpose of the meeting will be to make a
thorough review of the factors currently affecting

the consumption, production, and international
trade in cotton since the 15th plenary meeting
held at Washington in May 1956. The Committee
is an organization designed to promote cooper-
ation in the solution of those problems of cotton
which are primarily international in their scope
and significance.

Thirty-two governments are currently members
of the International Cotton Advisory Committee.
This Committee is the outgrowtli of an inter-
national cotton meeting of the governments of 12
of the principal cotton -exporting countries held
at Washington in September 1939 to provide a
mechanism for observing and keeping in close
touch with developments in the world cotton situ-
ation and for suggesting, as and when advisable,
measures for international action in respect of
cotton.

The present membei-s of the Committee are
Argentina, Australia, Austria, Belgium, Brazil,
Canada, Colombia, Denmark, Egj'pt, Finland,
France, Federal Kepublic of Germany, Greece,
Guatemala, India, Italy, Japan, Korea, Mexico,
Netlierlands, Nicaragua, Norway, Pakistan, Peru,
Portugal, Spain, Sudan, Sweden, Switzerland,
Turkey, United Kingdom, and United States.

Appointment to Inter-American
Tropical Tuna Commission

Wliitc IIouso press roleaso Jated May 10

President Eisenhower on May 10 appointed
Arnie J. Suomela of the Fish and Wildlife Serv-
ice, Department of tlie Interior, to be ILS. Com-
missioner on tiio Inter-American Tropical Tuna
Commission, vice John L. Farley, resigned.

908

Department of State Bulletin

Treaty of Amity, Economic Relations,
and Consular Rights With Iran

Press release 296 dated May 17

Katifications of the Treaty of Amity, Economic
Relations, and Consular Eights between the
United States and Iran were exchanged May 16
at Tehran. The protocol of exchange of ratifica-
tions was signed for Iran by Foreign Minister
Ardalan and for the United States by Ambassa-
dor Selden Chapin. The treaty, signed at Tehran
August 15, 1955,' will enter into force on June 16,
1957.

Air Transport Consultations
With Australia

Press release 291 dated May 15

Delegations of the Governments of the United
States and Australia began consultations at "Wash-
ington on May 15 on the air transport agi-eeraent
between the United States and Australia.

The leader of the Australian delegation is
Donald G. Anderson, Director-General, Depart-
ment of Civil Aviation. The other members of the
delegation are Jack T. Fogarty, Superintendent
of International Relations, Department of Civil
Aviation; I. R. Richardson, Civil Air Attache,
Australian Embassy; Capt. E. C. Jolmston, In-
ternational Adviser, Qantas Empire Airways;
Neil Hay, Legal Adviser, Qantas Empire Air-
ways; Martin Bradley, Attorney General's De-
partment; and James C. Ingram, Second Secre-
tary, Australian Embassy.

The United States delegation is headed by
Livingston Satterthwaite, Director, Office of
Transport and Communications, Department of
State. Other members of the delegation are Jolin
Gordon Mein, Acting Director, Office of South-
west Pacific Affairs, Department of State ; Joseph
C. Watson, Chief, International Operations Di-
vision, Civil Aeronautics Board; Bradley D.
Nash, Deputy Under Secretary for Transporta-

' Bulletin of Aug. 29, 1955, p. 367.

tion. Department of Commerce; Francis G. Jar-
vis, Officer in Charge, Southwest Pacific Eco-
nomic Affairs, Department of State; John W.
Perry, Aviation Division, Department of State;
and John E. Stephen, General Counsel, Air
Transport Association of America, who will at-
tend as an observer.

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency.
Done at New Yorls October 26, 1956."
Ratification deposited: Austria, May 10, 1957.

Aviation

Convention on international civil aviation. Done at Clii-
cago December 7, 1944. Entered into force April 4,
1947. TIAS 1591.
Adherence deposited: Ghana, May 9, 1957.

Nortliwest Atlantic Fisheries

Protocol to the International Convention for the North-
west Atlantic Fisheries signed at Washington under
date of February 8, 1949 (TIAS 2089). Done at Wash-
ington June 25, 1956.'
Senate advice and consent to ratification given: May 13

1957.
Rati/ication deposited: Norway, May 15, 1957.

Postal Services

Universal postal convention, with final protocol, annex,
regulations of execution, and provisions regarding air-
mail and final protocol thereto. Signed at Brussels
July 11, 19.j2. Entered into force July 1, 1953. TIAS
2800.

Ratifications deposited: El Salvador, April 13, 1957;
Guatemala, April 18, 1957.

Slave Trade

Protocol amending the slavery convention signed at
Geneva September 2.j, 1926 (40 Stat. 2183), and annex.
Done at New York December 7, 1953. Protocol entered
into force December 7, 1953. Annex entered into force
July 7, 1955. TIAS 3532.
Acceptance deposited: Burma, April 29, 1957.

BILATERAL

Iran

Treaty of amity, economic relations, and consular rights.
Signed at Tehran August 15, 1955.
Ratifications exchanged: May 16, 1957.
Enters into force: June 16, 1957.

Peru

Agreement for the establishment and operation of a
rawinsonde observation station at Lima, Peru. Ef-
fected by exchange of notes at Lima April 17, 19.57.
Enters into force on date of signature of an arrange-
ment embodying the technical details.

Agricultural commodities agreement under title I of the

' Not in force.

June 3, 1957

909

Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 454, 455; 69 Stat. 44, 721),
and exchange of notes. Signed at Lima May 2, 1957.
Entered into force May 2, 1957.

Turkey

Agreement further supplementing the agricultural com-
modities agreement of November 12, 1956 (TIAS 3697).
Effected by exchange of notes at Ankara April 20,
1957. Entered into force April 20, 1957.

DEPARTMENT AND FOREIGN SERVICE

Resignations

Robert R. Bowie as Assistant Secretary for Policy
Planning and State Department representative on the
National Security Council Planning Board. (For
texts of Mr. Bowie's letter to the President and the
President's reply, see White House press release dated
May 16.)

Arthur Gardner as Ambassador to Cuba.

Establishment of Consulate at Sarajevo

An American Consulate has been established at Sara-
jevo, Yugoslavia. The office was officially opened effective
April 23, 1957, but will not open to the public until a later
date.

The consular jurisdiction of the Consulate includes the
People's Republic of Bosnia-Herzegovina (formerly in the
Zagreb district) and the People's Republic of Montenegro
(formerly in the Belgrade consular district).

PUBLICATIONS

Recent Releases

For sale 6j/ the Superintendent of Documents, V.8. Oov-
ernment Printing Office, Washington 25, D. C. Address
requests direct to the Superintendent of Documents, ex-
cept in the case of free puhlications, which may fie ob-
tained from the Department of State.

Atomic Energy — Cooperation for Civil Uses.
33 pp. 15^.

Agreement, with exchange of notes, between the United
States of America and Switzerland — Signed at Washing-
ton June 21, 195G. Entered into force January 29, 19.'»7.

Agricultural Commodities — Raw Silk Industry. TIAS
3746. 4 pp. 50.

Agreement between the United States of America and
Japan. Exchange of notes — Signed at Tokyo January 18,
1957. Entered into force January 18, 1957.

Disposition of German Assets in Thailand. TIAS 3747.

2 pp. 50.

Agreement between the United States of America and
other governments — Signed at Bangkok January 31, 1957.
Entered into force January 31, 1957.

Surplus Agricultural Commodities. TIAS 3748. 2 pp. 5^.

Agreement between the United States of America and
Greece, amending agreement of August 8, 1956. Ex-
change of notes — Signed at Athens January 8 and 25,
1957. Entered into force January 25, 1957.

Surplus Agricultural Commodities. TIAS 3749. 3 pp. 5tf.

Agreement between the United States of America and
Iran, amending agreement of February 20, 1956. Ex-
change of notes — Signed at Washington January 29 and
30, 1957. Entered into force January 30, 1957.

Financial Arrangements for Furnishing Certain Supplies
and Services to Naval Vessels. TIAS 3750. 4 pp. 5^.

Agreement between the United States of America and
Greece. Exchange of notes — Signed at Athens January
18 and 19, 1957. Date of entry into force: April 19,
1957.

Defense — Transfer of Property at Roberts Field. TIAS
3751. 3 pp. 50.

Agreement between the United States of America and
Liberia. Exchange of notes — Signed at Washington April
19, 1955, and August 21 and September 22, 1956. Entered
Into force January 4, 1957.

Relief Supplies and Equipment — Duty-Free Entry and
Exemption From Internal Taxation. TIAS 3752. 5 pp.

5«».

Agreement between the United States of America and the
Philippines. Exchange of notes — Dated at Manila April
29, 1954, and October 18, 1956. Entered into force Octo-
ber 18, 1956.

Defense — Training of German Army Personnel. TIAS

3753. 4 pp. 5«i.

Agreement between the United States of America and
the Federal Republic of Germany. Exchange of notes —
Signed at Bonn/Bad Godesberg and Bonn December 12,
1956. Entered into force December 12, 1956.

Defense — Training of German Navy Personnel. TIAS

3754. 4 pp. 5«*.

Agreement between the United States of America and
the Federal Republic of Germany. Exchange of notes —
Signed at Bonn/Bad Godesberg and Bonn December 12,
1956. Entered into force December 12, 1956.

Defense — Offshore Procurement Program. TIAS 3755.
22 pp. 15<i.

Agreement between the United States of America and
the Federal Republic of Germany — Signed at Bonn April
4, 1955. Entered into force February 7, 1957.

TIAS 3745 International Civil Aviation. TIAS 3756. 11 pp. 100.

Protocol between the United States of America and Other
Governments, amending convention of December 7, 1944 — -
Done at Montreal June 14, 1954. Entered into force De-
cember 12, 1956.

Emergency Relief Assistance. TIAS 3757. 4 pp. 5^.

Agreement between the United States of America and
Haiti. Exchange of notes — Signed at Port-au-Prince De-
cember 26 and 28, 1956. Entered Into force December 28,
1956.

910

Department of State Bulletin

June 3, 1957

Index

Vol. XXXVI, No. 93b

Agriculture

Administration of Agricultural Trade Development

Aft of rju4 (text of executive order) .... 905

International Cotton Advisory Committee (delega-
tion) 908

American Republics. Appointment to Inter-Ameri-

caii Tropical Tuna Commission (Suomela) . . 90S

Atomic Energy

EURATOM Committee Issues Report on Power

Target 901

The International Atomic Energy Agency (Dulles,

Wadsworth, Wilcox) 878

Secretary Dulles' News Conference of May 14 . . 894

U.S. Replies to Japan on Atom and Hydrogen

Bomb Tests (texts of notes) 901

Australia. Air Transport Consultations With Aus-

traUa 909

Aviation. Air Transport Consultations With Aus-
tralia 909

Canada. Letters of Credence (Robertson) . . . 893

China, Communist. Secretary Dulles' News Con-
ference of May 14 894

Claims and Property. Final Date Fixed for Fil-
ing War Damage Claims Against Italy .... 901

Colombia. United States Recognizes Provisional
Government of Colombia 901

Congress, The. The International Atomic Energy

A;;ency (Dulles, Wadsworth) 878

Cuba. Resignations (Gardner) 910

Department and Foreign Service

Establishment of Consulate at Sarajevo .... 910

Fees for Special Clearance on Passports Reduced . 904

Resignations (Bowie, G;irdner) 910

Disarmament. Secretary Dulles' News Confer-
ence of May 14 894

Economic Aflfairs. Administration of Agricul-
tural Trade Development Act of 1954 (text of
executive order) 905

Europe. EURATOM Committee Issues Report on

Power Target 901

Germany. Secretary Dulles' News Conference of

May 14 894

International Organizations and Conferences

Appointment to Inter-American Tropical Tuna

Commission (Suomela) 908

Calendar of Meetings 906

International Cotton Advisory Committee (delega-
tion) 908

Iran. Treaty of Amity, Economic Relations, and

Consular Rights With Iran 909

Israel. Secretary Dulles' News Conference of May

14 894

Italy. Final Date Fixed for Filing War Damage

Claims Against Italy 901

Japan. U.S. Replies to .Japan on Atom and Hydro-
gen Bomb Tests (texts of notes) 901

Mutual Security. National Security and the Cost

of Waging Peace (Eisenhower) 875

Presidential Documents

Administration of Agricultural Trade Develop-
ment Act of 1954 905

National Security and the Cost of Waging Peace . 875

Publications. Retent Releases 910

Treaty Information

Air Transport Consultations With Australia . . 909

Current Actions 909

Treaty of Amity, Economic Relations, and Consular

Rights With Iran 909

Yugoslavia. Establishment of Consulate at Sara-
jevo 91(^

Name Index

Bowie, Robert R 910

Dulles, Secretary 878,894

Eisenhower, President 875, 905

Gardner, Arthur 910

Robertson, Norman A 893

Suomela, Arnie J 908

Wadsworth, James J 880

Wilcox, Francis O 887

Check List of Department of State
Press Releases: May 13 19

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

Press releases issued prior to May 13 which appear
in this issue of the Bulletin are Nos. 269 of May 6,
273 of May 7, and 282 of May 10.
Subject

Note to U.S.S.R. on travel restrictions
on embassy personnel.

Reply to Japanese note on atom tests.

Expanded educational exchange recom-
mended.

Dulles : news conference.

Military aid to Yugoslavia.

Wadsworth : statement on IAEA.

Consultations on air transport agree-
ment with Australia.

Rountree: "The Middle East— Funda-
mentals of American Policy."

War damage claims against Italy.

Canada credentials (rewrite).

Delegation to Cotton Advisory Commit-
tee (rewrite).

Treaty of amity with Iran ratified.

Educational exchange.

Earl E. T. Smith nominated Ambassa-
dor to Cuba.

Colombian provisional government rec-
ognized.

Wilcox : atomic energy agency.

Program for Adenauer visit.

*Not printed.

tHeld for a later issue of the Bulletin.

No.

Date

1285

5/13

286

*287

5/13
5/14

288

t289

290

291

5/14
5/14
5/15
5/15

t292

5/16

293
294
295

5/16

5/17
5/17

296
*297
♦298

5/17
5/17
5/17

299

5/17

300
t301

5/17
5/17

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OFFICIAL BUSINESS

The International

Atomic Energy Agency

On December 8, 1953, before the General Assembly of the
United Nations, President Dwight D. Eisenhower proposed that a
world organization be formed to promote the peaceful uses of
nuclear energy. This proposal received an almost unanimous
favorable response from all parts of the world.

On September 20, 1956, representatives of 81 nations — the
largest number ever to meet for an international conference —
assembled at U.N. headquarters in New York. Seventy of these
nations, on October 26, signed the Statute of the International
Atomic Energy Agency, an organization dedicated to the promo-
tion of the peaceful uses of the atom. Ten more have since signed.

As soon as 18 nations (including at least 3 of the principal atomic
powers) have ratified the Statute in accordance with their con-
stitutional procedures, the Agency will come into being.

The. International Atomic Energy Agency, a 12-page pamphlet,
describes the background of the Agency, what it will do, its finan-
cial provisions, safeguards against diversion of assistance to mili-
tary use, and protection of health and safety. The "Vocabulary
of Atomic Energy" that prefaces the pamphlet defines some of the
important tei'ms in the atomic energy field.

Copies of this publication may be purchased from the Superin-
tendent of Documents, U.S. Government Printing Office, Wash-
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Vol. XXXVI, No. 937

I151957J

s . p l^ / \
JulSe'lO, 1957

THE NEED FOR MUTUAL SECURITY IN WAGING

THE PEACE • Address by President Eisenhower .... 915

MUTUAL SECURITY PROGRAM FOR 1958 PRE-
SENTED TO CONGRESS

Message of President Eisenhower 920

Statement by Secretary Dulles 926

ACTION HIGHLIGHTS OF THE MUTUAL SECURITY
PROGRAM, JULY 1-DECEMBER 31, 1956 • Excerpts

From the Eleventh Semiannual Report to Congress .... 931

GUIDING PRINCIPLES IN UNITED STATES FOREIGN

POLICY • by Deputy Under Secretary Murphy 942

EXTENDING TARIFF CONCESSIONS UNDER

ARTICLE XXVIII OF GATT 946

For index see inside back cover

THE DEPARTMENT OF STATE

Vol. XXXVI, No. 937 • Pubucation 6501
June 10, 1957

For saJe by the Superintendent of Documents

U.S. Ooverament Printing Office

Washington 25, D.C.

Prick:

62 Issues, domestic $7.60, foreign $10,26

Single copy, 20 cents

The printing of this publication has been
approved by the Director of the Bureau of
the Budget (January 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 bo
appreciated.

The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the work of the
Department of State and the Foreign
Service. The BULLETIN includes se-
lected press releases on foreign policy,
issued by the White House and the
Department, and statements and ad-
dresses made by the President and by
the Secretary of State and other
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 interrmlional agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

Publications of the Department,
United Nations documents, and legis-
lative material in tlie field of inter-
national relations are listed currently.

The Need for Mutual Security in Waging tlie Peace

Address hy P7'esident Ehenhower '

Just 1 week ago I tallied with you about our
Federal budget as a whole.^ Tonight I want to
talk with you about one part of it: our mutual
security programs. These programs are the
source of military and economic strength for our
alliances throughout the free world. They form,
in fact, a saving shield of freedom.

Although the cost of these programs amounts
to only 5 percent of the budget, I am talking ex-
clusively about them tonight for two simple rea-
sons:

First: In my judgment these programs do more
than any other, dollar for dollar, in securing the
safety of our country and the peaceful lives of
all of us.

Second : They are the most misunderstood of
any of the Federal Government's activities. Their
nature, their purposes, their results are vitally im-
portant to all of us — but little known to many of
us.

The common label of "foreign aid" is gravely
misleading for it inspires a picture of bounty for
foreign countries at the expense of our own. No
misconception could be further from reality.
These programs serve our own basic national and
personal interests.

They do this both immediately and lastingly.
In the long term, the ending or the weakening of
these programs would vastly increase the risk of
future war. And, in the immediate sense, it would
impose upon us additional defense expenditures
many times greater than the cost of mutual se-
curity today.

'Delivered to the Nation over radio and televi.sion on
Alay 21 (White House press release).
' Bulletin of June 3. 1957, p. 875.

This evening it is my purpose to give you in-
contestable proof of these assertions.

We have, during this century, twice spent our
blood and our treasure fighting in Europe, and
twice in Asia. We fought because we saw, too late
to prevent war, that our own peace and security
were imperiled by the urgent danger, or the ruth-
less conquest, of other lands.

We have gained wisdom from that suffering.
We know, and the world knows, that the American
people will fight hostile and aggressive despotisms
when their force is thrown against the barriers of
freedom, when they seek to gain the high ground
of power from which to destroy us. But we also
know that to fight is the most costly way to keep
America secure and free. Even an America vic-
torious in atomic war could scarcely escape disas-
trous destruction of her cities and a fearful loss of
life. Victory itself could be agony.

Plainly, we must seek less tragic, less costly ways
to defend ourselves. We must recognize that,
whenever any country falls under the domination
of communism, the strength of the free world —
and of America — is by that amount weakened and
communism strengthened. If this process,
through our neglect or indifference, should pro-
ceed unchecked, our continent would be gradually
encircled. Our safety depends upon recognition
of the fact that the Communist design for such
encirclement must be stopped before it gains mo-
mentum, before it is again too late to save the
peace.

This recognition dictates two tasks. We must
maintain a common worldwide defense against the
menace of international commimism. And we
must demonstrate and spread the blessings of

June 70, J 957

915

liberty — to be cherished by those who enjoy these
blessings, to be sought by those now denied them.

This is not a new policy nor a partisan policy.
This is a policy for America that began 10 years
ago when a Democratic President and a Republi-
can Congress united in an historic declaration.
They then declared that the independence and
survival of two countries menaced by Communist
aggression — Greece and Turkey — were so impor-
tant to the security of America that we would
give them military and economic aid.

That policy saved those nations. And it did so
without the cost of American lives.

That policy has since been extended to all criti-
cal areas of the world. It recognizes that America
cannot exist as an island of freedom in a sur-
rounding sea of communism. It is expressed con-
cretely by mutual security treaties embracing 42
other nations. And these treaties reflect a solemn
finding by the President and by the Senate that
our own peace would be endangered if any of
these countries were conquered by international

communism.

The lesson of the defense of Greece and Turkey
10 years ago has since been repeated in the saving
of other lands and peoples. A recent example is
the Southeast Asian country of Viet-Nam, whose
President has just visited us as our honored guest.'

Two years ago it appeared that all Southeast
Asia might be overrun by the forces of interna-
tional communism. The freedom and security of
nations for which we had fought throughout
World War II and the Korean War again stood
in danger. The people of Viet-Nam responded
bravely — under steadfast leadership.

But bravery alone could not have prevailed.

We gave military and economic assistance to the
Republic of Viet-Nam. We entered into a treaty —
the Southeast Asia security treaty — which plainly
warned that an armed attack against this area
would endanger our own peace and safety and
that we would act accordingly. Thus Viet-Nam
has been saved for freedom.

This is one of the nations where we have been
spending the largest amounts of so-called foreign
aid. What could be plainer that the fact that
this aid has served not only the safety of another
nation but also the secui-ity of our own ?

The issue, then, is solemn and serious and clear.

When our young men were dying in the Argonno

• Ilnd., May 27, 1957, p. 851.
916

in 1918 and on the beaches of Normandy and in the
Western Pacific in 1944 and at Pusan in 1950 —
and when the battlefields of Europe and Africa
and Asia were strewn with billions of dollars'
worth of American military equipment, repre-
senting the toil and the skills of millions of work-
ers— no one for an instant doubted the need and
the riglitness of this sacrifice of blood and labor
and treasure.

Precisely the same needs and purposes are served
by our mutual security programs today, whether
these operate on a military or an economic front.
For on both fronts they are truly defense
programs.

To the truth of this a number of thoughtful and
qualified Americans have recently testified.

Wlien the Congress last year approved the mu-
tual security programs, I believed, as did many
others, that it was time to review their whole
concept. Since then, careful studies have been
completed by committees of the Congress, by com-
petent private groups, and by two public groups
of leading citizens from all walks of life. All
these studies unanimously agreed that these pro-
grams are vital to our national interest and must
be continued.

Some important revisions in the structure of our
programs were recommended by these various
studies. And with the benefit of these recom-
mendations my message to the Congress today
has proposed certain changes.

The whole design of this defense against Com-
munist conspiracy and encirclement cannot be
with guns alone. For the freedom of nations can
be menaced not only by guns but by the poverty
that communism can exploit.

You cannot fight poverty with guns. You can-
not satisfy hunger with deadly ammimition.
Economic stability and progress, essential to any
nation's peace and well-being, cannot be assured
merely by the firepower of artillery or the speed
of jets.

And so our mutual security programs today, at
a cost of some $4 billion, are designed to meet
dangers in whatever form they may appear.
Thus, their key pui-poses are three :

First: To help friendly nations equip and sup-
port armed forces for their own and our defense.

Second: To lielp, in a sustained ofTort, less ad-
vanced countries grow in the strength that can
sustain freedom as their way of life.

Department of State Bulletin

And third: To meet emergencies and special
needs affecting our own national interest.

Military Assistance

Examining each of tliese purposes briefly, I
first speak of the military aspect of these pro-
grams.

This accounts for about three-fourths of their
total cost — just under $3 billion. This sum
serves — indeed it belongs to — our own national
defense. And to recogiaize that plain fact I have
today requested the Congi-ess henceforth to appro-
priate funds for military assistance as part of the
regular budget of our Department of Defense.

Our system of collective defense unites us with
all those 42 countries with whom we have defense
treaties. It embraces the Organization of Ameri-
can States in tliis Western Hemisphere and de-
fense arrangements with many Far Eastern coun-
tries like Korea and the Republic of China. It
includes our readiness to cooperate in the Middle
East with any free country threatened by Com-
munist aggression and seeking our aid.

In Europe this collective effort is symbolized by
Nato — the 15 countries of the North Atlantic
Treaty alliance. And Nato's strength involves
much more than symbols. In addition to our
forces, Nato has more than 80 trained divisions,
active and reserve, some 6,000 modern aircraft,
600 major naval vessels. Here, as elsewhere
throughout the world, our allies provide man-
power, resources, and bases, while we help with
weapons and military training.

Here again we see in the most concrete and
practical way how collective effort and collective
security serve our own national good. For our
Nation to try, completely alone, to counter the
Communist military threat would be not only
more hazardous strategy; it would also be far
more costly.

It would demand many billions of dollars more
in defense expenditures. It would mean raising
the draft calls throughout our land. It would
mean more of our sons in uniform. It would
mean longer service for them.

And even if we did all these things — and I do
not hear the critics of mutual security publicly
proposing such alternatives — even then we would
finally provide a defense inferior in strength to
the collective defense we share with our allies
today.

Around the world we have provided our allies,
over the past 7 years, some $17 billion in direct
military assistance. Over the same period, the
defense budgets of our allies have totaled some
$107 billion.

Let us see what this imited effort has achieved
in 8 years. In 1950, the strength of our allies
totaled 1,000 combat vessels, 3.5 million men in
their ground forces, and 500 jet aircraft. Now,
in 1957, they have 2,500 combat vessels, 5 million
men, and 13,000 jets.

Within this worldwide program our own con-
tribution is vital. There are free countries in
danger which, if thrown back completely on their
own resources, would have to cut their armed
forces. They would at once become targets for
renewed Communist pressures. We would have
to increase our own military strength, and in the
process we would suffer in terms of both cost and
security. And the endangered nations would
suffer a slow strangulation quite as fateful as
sudden aggression.

These are the harsh and inescapable facts of
international life in this mid-twentieth century.
We must face these facts and act accordingly —
or face, instead, ultimate disaster as a people.

Economic Aid

Now let us look at mutual security on the eco-
nomic front. The peril here can be just as great
to us as in the military arena.

Today in many countries one billion free peo-
ple, across three continents, live in lands where
the average yearly income of eacli man is $100 or
less. These lands include the 19 nations that have
won their independence since World War II.
Most of them are on the frontier of the Commu-
nist world, close to the pressure of Communist
power. For centuries the peoples of these coun-
tries have borne a burden of poverty. Now they
are resolved to hold on to political independence,
to achieve the economic strength to sustain that
independence, and to support rising standards of
living.

In these lands no government can justly rule,
or even survive, which does not reflect this re-
solve, which does not offer its people hope of prog-
ress. And wherever moderate government disap-
pears, Commimist extremists will extend their
brand of despotic imperialism.

Our own strength would suffer severely from

June 10, 1957

917

the loss of these lands — their people and their re-
sources— to Communist domination. As tliese
lands improve their own standards of living, they
will be stronger allies in defense of freedom. And
there will be widening opportunity for trade with
them.

We seek to help these people to help themselves.
We cannot export progress and security to them.
Essentially, they must achieve these for them-
selves. But there ai-e practical ways by which
we can help, especially in the early struggles of
these yomig nations to survive.

For one thing, they need the knowledge of
skilled people — farm experts, doctors, engineers —
to teach new techniques to their people. Our pro-
gram of technical cooperation aims to do this. It
will cost $150 million next year.

At the same time, because their inherited pov-
erty leaves these peoples so little for saving, they
need the help of some capital to begin essential
investment in roads, dams, railroads, utilities—
the sinews of economic strength.

Already many of these countries, like India and
Pakistan, are with great difficulty devoting sub-
stantial amounts of their limited resources to this
kind of long-range investment. But at this criti-
cal moment of their economic growth a relatively
small amount of outside capital can fatefully de-
cide the difference between success and failure.
Wliat is critical now is to start and to maintain
momentum.

While we want and intend to see that private
investors and other lending agencies supply as
much as possible of this outside capital, our de-
velopment assistance ^jrogram under mutual se-
curity has a vital role to play. Here I am con-
vinced that we should rely more upon loans than
upon gifts. This is the sound and proper way
for free allies to work together — to respect and
to encourage the pride of each nation, to inspire
in each nation greater zeal and sense of respon-
sibility, to encourage thoughtful long-term plan-
ning rather than frantic emergency action.

This outlook signifies a fundamental shift of
emphasis from the practice of past years. I have
accordingly asked the Congress to create a de-
velopment loan fund with enough capital to al-
low orderly and continuing operations. Onlj'
this kind of sustained operations will allow for
the prudent and thoughtful use of money. Only
such operations will assure priority to the most
sound and necessary projects.

918

To assure this continuity and coherence of ac-
tion, I have specifically requested for the first
year $500 million already in the budget and au-
thority for $750 million for each of the 2 suc-
ceeding years.

In this whole program, we do not seek to buy
friends. We do not seek to make satellites. We
do seek to help other peoples to become strong
and stay free — and learn, through living in free-
dom, how to conquer poverty, how to know the
blessings of peace and progress.

This purpose, I repeat, serves our own national
interest.

It also reflects our own national character. AVe
are stirred not only by calculations of self-interest
but also by decent regard for the needs and the
hopes of all our fellowmen. I am proud of this
fact, as you are. None of us would wish it to
be otherwise.

This is not mere sentimentality. This is the
very nature of America, realistically understood
and applied.

If ever we were to lose our sense of brother-
hood, of kinship with all free men, we would have
entered iipon our Nation's period of decline.
Without vision, without a quick sense of justice
and compassion, no people can claim greatness.

Meeting Emergencies and Special Needs

There remains, in addition to continuing de-
fense and economic aid, a final aspect to our mu-
tual security programs. This entails assistance to
meet various special needs, including sudden
crises against which prior planning is impos-
sible. Such crises generally demand the swiftest
action.

We have seen several such examples in recent
years.

In the Middle East, the freedom of Iran only
4 years ago was tlireatened by the rule of a gov-
ernment inclined toward communism. Under
the courageous leadership of the Shah, tlie people
of Iran met that danger. In their effort to re-
store economic stability, they received indispen-
sable help from us. Iran remains free. And its
freedom continues to prove of vital importance
to our own freedom.

In our own hemisphere, Guatemala not long
ago faced a similar peril, witli heavy Communist
infiltration into tlie goverinnent. Here, too, tlie
l)eople rose to repel tliis threat, but they needed —

Department of State Bulletin

A

and they received — the help witliout which their
efforts could have been in vain.

Most recently we have witnessed a like in-
stance in the Middle East. The Kingdom of
Jordan ciime luider the sway of a succession of
cabinets, each one seemingly more tolerant of
Communist infiltration and subversion. King
Hussein has acted swiftly and resolutely to fore-
stall disaster, and the peril now seems checked.

Yet this victorj' would surely be lost without
economic aid from outside Jordiui. Jordan's
armed forces must be paid. The nation's utili-
ties must function. And, above all, the people
must have hope.

Some necessary aid can come from neighboring
Arab countries, such as Saudi Arabia, but some
also must come from the United States. For the
security of Jordan means strength for all the
forces of freedom in the Middle East.

Now, you have undoubtedl}' heard charges of
waste and inefficiency in some of these programs
of assistance, such as that in Iran. I do not
doubt that isolated incidents could be cited to
support such charges.

On this I have two convictions :

First: The remarkable truth is not that a few
Americans working abroad may have been ineffi-
cient but that so many thousands of patriotic
Americans have willingly and competently done
their jobs in distant lands, under the most diffi-
cult conditions, often in the presence of real
danger.

And second : Wlien we speak of waste, let none
of us forget that there is no waste so colossal as
war itself — and these programs are totally dedi-
cated to the prevention of that most appalling
kind of waste.

All such situations — as in Iran, Guatemala.
Jordan — have been tense moments in the world
struggle. Each such moment has vitally touched
our own national interest.

I have asked the Congress for the sum of $300
million to enable us to act, and to act swiftly, in
any such moment as it may strike. Only such
part of that sum will be used as is clearly needed
to serve our national interest. But the history of
these years surely means one thing: To give sav-
ing help at such moments is true economy on a
world scale, for it can mean the saving of whole
nations and the promotion of peace.

Putting First Things First

These, then, are the kinds of help and action
that make up our mutual security programs, for
which I have asked the Congress to appropriate
less than $4 billion — one-twentieth of our na-
tional budget.

This is not a mathematical guess or an arbi-
trary sum. It reflects economies already
achieved in some aspects of militai-y aid. It is
a reasoned figure. And, considering the issues at
stake, it is a minimum figure.

I know of no more sound or necessary invest-
ment that our Nation can make. I know of no
expenditure that can contribute so much, in the
words of the Constitution, to our "common de-
fense" and to securing the blessings of liberty for
ourselves and our posterity.

To see all the day-to-day results of these pro-
grams in concrete terms is not always easy. They
operate in distant lands whose histories, even
their names, seem remote. Often the results are
not swift and dramatic but gradual and steady.
They operate in a way rather like police or fire
protection in our own cities. "WHien they are
least in the news, they are really doing the most
effective work.

We live at a time when our plainest task is
to put first things first. Of all our current do-
mestic concerns — lower taxes, bigger dams, deeper
harbors, higher pensions, better housing — not one
of these will matter if our Nation is put in peril.
For all that we cherish and justly desire, for our-
selves or for our children, the securing of peace
is the first requisite.

We live in a time when the cost of peace is high.
Yet the price of war is higher and is paid in dif-
ferent coin — with the lives of our youth and the
devastation of our cities.

The road to this disaster could easily be paved
with the good intentions of those blindly striving
to save the money that must be spent as the price
of peace.

It is no accident that those who have most in-
timately lived with the horrors of war are gener-
ally the most earnest supporters of these programs
to secure peace.

To cripple our programs for mutual security
in the false name of "economy" can mean nothing
less than a weakening of our Nation.

To try to save money at the risk of such damage
is neither conservative nor constructive. It is

June JO, 1957

919

reckless. It could mean the loss of peace. It could
mean the loss of freedom. It could mean the loss
of both.

I know that you would not wish your Govern-
ment to take such a reckless gamble. I do not
intend that your Government take that gamble.

I am convinced of the necessity of these pro-
grams of mutual security — for the very safety
of our Nation. For upon them critically depends
all that we hold most dear — the heritage of free-
dom from our fathers, the peace and well-being
of the sons who will come after us.

Mutual Security Program for 1958 Presented to Congress

MESSAGE OF PRESIDENT EISENHOWER'

To the Congress of the United States :

The safety of our country, the preservation and
strengthening of world peace, the minimizing of
risk to American lives and resources in future
years, all imperatively demand that we hold fast
in our worldwide collective security effort.

In supplementing our country's defense, the
tested and proven mutual security programs give
the American people more security per dollar in-
vested than any other expenditure they make.

In our most important task of all — the waging
of peace — these programs lay firmer foundations
than any other effort of our counti-y.

For almost a decade every objective analysis has
supported these views. This past year they have
been convincingly reaffirmed. Congressional
committees, the executive branch, and distin-
guished private citizens have just examined these
programs anew. On two fundamentals these
groups have unanimously found —

First, that both the military and economic ele-
ments of our mutual security programs are es-
sential to the security of the American people and
to world peace.

Second, that these programs will continue for
some years to come to be indispensable to the at-
tainment of our country's goals in the world.

These recent studies again substantiate that
these programs —

Strengthen our own defenses ;

Advance our own interests through the stimu-
lation and growth of the economies of less de-
veloped countries; and,

'H. Doc. 182, 85th Cong., 1st sess. ; transmitted on
May 21.

Provide a necessary, powerful weapon with
which to meet political and economic crises abroad
that endanger our own vital interests.

Our grave responsibility, therefore, in this ses-
sion of the Congress, is not only the continuance
of these programs but also their continuance at a
level dictated by the dangers we face — and the
opportunities we have to counter them.

The recent studies have also generally agreed
that these programs will be strengthened by a
clearer identification of their principal elements
with their purposes. I shall first refer to these
elements of the programs and then discuss spe-
cific changes which I ask the Congress to adopt
to improve their effectiveness.

First is defense assistance — our and other free
nations' common effort to counter the Soviet-Chi-
nese military power and their drive to dominate
the world. That power continues to grow— in
armaments, in nuclear capability, in its economic
base. The Communist goal of conquering the
world has never changed.

For our Nation alone to undertake to withstand
and turn back Communist imperialism would
impose colossal defense spending on our people.
It would ultimately cost us our freedom.

For other free nations to attempt individually
to counter this menace would be impossible.

We in our own interest, and other free nations
in their own interest, have tlierefore joined in the
building and maintenance of a system of collec-
tive security in which tlie effort of each nation
strengthens all. Today that system has become
the keystone of our own and their security in a
tense and uncertain world.

920

Department of State Bulletin

Only if truly mutual — with mutual acts build-
ing mutual strength — can this system of collec-
tive security succeed.

On our part, in addition to our own forces at
home and abroad, we provide military equipment
and training for many countries as well as eco-
nomic assistance to some to supplement their sup-
port of enlarged forces required in the common
defense.

On their part, friendly nations man their
forces and, in most cases, provide the greater part
of their direct financial support. These nations
also provide strategic sites for our own as well as
their air, ground, and naval forces — sites essential
to our combined capacity to deter aggression and
defend our homelands.

In the last 8 years this Nation has furnished di-
rect military assistance to these nations' forces in
an amount approximating $17 billion. In the
same period free world nations have put $107 bil-
lion into their own and the common defense.

Through this $17 billion we have helped de-
velop and equip a free world strength of 200 divi-
sions of friendly military forces.

They have some 27,000 aircraft.

They operate some 2,500 active combatant naval
vessels.

This assistance which we have furnished and
are furnishing our friends increases their ability
to defend themselves against subversion from
within and aggression from without.

It substantially strengthens the security of the
United States.

By helping to stabilize world affairs, it height-
ens the prospects for a just and lasting peace.

This collective security effort has proved its
value to the protection of America and the pre-
vention of war. I give here a few of the historical
incidents in which failure to give aid could have
meant ultimate disaster for our country and world
peace.

Had it not been for American assistance in 1947,
Greece and Turkey would have succimibed to Com-
munist power.

Had it not been for our assistance since 1948,
the determination of Yugoslav leaders and people
to develop their nation independently of Moscow
might not have survived.

Had it not been for our assistance in 1954, stra-
tegic Vietnam and southeast Asia would prob-
ably be lost today to the free world.

Today in Korea and Free China our assistance

helps presei've national will and independence un-
der the very muzzles of Communist gims.

Today in the Middle East our assistance helps
to preserve the integrity of one of the most vital
regions in the world as well as the independence
of some of the nations in that area.

At this very time, when our prior efforts are
bearing good fruit, while Soviet intrigue and
power continue their probing and pressure in
every critical area in the world, it would be su-
preme folly for our country eitlier to stop these
efforts or to cripple them through an overween-
ing zeal to scrimp at their expense.

The second major element of our mutual secu-
rity programs is economic development assistance
and technical cooperation.

This part of the programs helps less developed
countries make the social and political progress
needed to preserve their independence. Unless
these peoples can hope for reasonable economic
advance, the danger will be acute that their gov-
ernments will be subverted by communism.

To millions of people close to the Soviet and
Chinese Communist borders political freedom is
still new. To many it must still prove its worth.
To survive it must show the way to another and
equally essential freedom — freedom from the pov-
erty and hopelessness in which these peoples have
lived for centuries. With their new freedom their
desire and their determination to develop their
economies are intense. They are fixed upon rais-
ing their standards of living. Yet they lack suf-
ficient resources. Their need for help is desper-
ate— both for teclinical know-how and capital.

Lacking outside help these new nations cannot
advance economically as they must to maintain
their independence. Their moderate leaders must
be able to obtain sufficient help from the free world
to offer convincing hope of progress. Otherwise
their peoples will surely turn elsewhere. Ex-
tremist elements would then seize power, whip up
national hatreds, and incite civil dissension and
strife. The danger would be grave that these free
governments would disappear. Instability and
threats to peace would result. In our closely knit
world, such events would deeply concern and po-
tentially endanger our own people.

The help toward economic development that we
provide these countries is a means to forestall
such crises. Our assistance is thus insurance

June TO, 19S7

921

against rising tensions and increased dangers of
war, and against defense costs tliat would sky-
rocket here at home should tragedy befall these
struggling peoples.

These revolutionary developments in distant
parts of the world are borne on the crest of the
wave sent out a century and a half ago by the
example of our own successful struggle for free-
dom. The determination of the people of these
nations to better their lot and to preserve their
newly gained liberty awakens memories of our
own noblest traditions. Our helping hand in
their struggle is dictated by more than our own
self-interest. It is also a mirror of the charac-
ter and highest ideals of the people who have
built and preserved this nation.

The third major element of the mutual secu-
rity programs is the special— often emergency —
assistance we provide to help friendly nations
through critical periods when violent political
change, natural disaster or other circumstance
threaten both their stability and our own national
interests.

In 1953, strategically located Iran, under an er-
ratic leader, verged on communism and chaos.
The Iranians succeeded in establishing a govern-
ment friendly to us and freedom. Our assistance
gave them the additional strength needed to sta-
bilize their nation and to consolidate their victon'
over violence and subversion.

Similar aid to Guatemala enabled republican
government to survive there after a pro-Commu-
nist regime was overthrown in 1954.

In the many unstable regions of the world,
Communist power is today probing constantly.
Every weakness of free nations is being exploited
in every possible waj'. It is inevitable that we
shall have to deal with such critical situations in
the future. In xVmerica's own interest, we must
stand ready to furnish special assistance when
threatened disaster abroad foretells danger to our
own vital concerns.

The major elements of our mutual security pro-
grams are therefore still as urgently needed for
our own security as ever before. But, as others
have recently urged, I believe that these elements
should be more clearly defined in order to facili-
tate more efficient and more economical adminis-

tration. I recommend four specific changes in
existing programs :

First, defense assistance programs should be
separated from programs for economic develop-
ment.

Second, defense assistance should be recognized
and treated as an integral part of our own world-
wide defense efforts.

Third, economic development assistance should
be provided primarily through loans, on a contin-
uing basis, and related closely to technical assist-
ance.

Fourth, needs for special economic assistance
should be met by funds authorized and appro-
priated specifically for this purpose.

To accomplish these purposes I recommend the
following legislative actions :

First, I recommend that defense assistance,
both military assistance and related economic
support, be separated from economic development
assistance.

We spend the largest part of our mutual se-
curity funds to strengthen friendly military
forces through the use of two types of defense
assistance :

One is military assistance — that is, guns, am-
munition, tanks, planes, ships, and other weapons
which we furnish to military allies, plus trainmg
in the use of such weapons.

The other is defense support. Although su-
perficially economic in purpose, this assistance
enables friendly nations to maintain military
forces and provide military facilities substanti-
ally greater than they could otherwise support.

The present arrangement of our mutual secu-
rity programs does not clearly differentiate de-
fense support assistance from economic develop-
ment assistance. Until now, both military and
defense support assistance have been joined with
development assistance in one appropriation
measure. In the process, economic development
assistance for countries with which we have mil-
itary assistance agreements has tended to lose its
identity.

To remove uncertainty as to the character and
purpose of our aid, I recommend a clear separa-
tion of military and defense support assistance on
the one hand, from economic development assist-
ance on the other. Tlie program being submitted
to the Congress provides for this separation. I

922

Department of State Bulletin

The second legislative action I propose is this :
That defense assistance appropriations be m-
cluded as a separate title in the regular Depart-
ment of Defense budget.

Our expenditures for defense assistance differ
neither in basic purpose nor character from those
for our own Armed Forces. Once incorporated
in our own Defense budget, they will become rec-
ognized here and abroad — as indeed they should
be — as part of the military effort of the United
States. To assure a continuing close coordina-
tion of all elements of the entire program, I also
propose that these funds be appropriated to the
President.

I reconmiend also that appropriations for both
military assistance and defense support be pur-
suant to a continuing authorization enacted by the
Congress. This would fittingly recognize that
our own security requires continuance of these
parts of our own military effort as long as Com-
munist imperialism remains a menace to free peo-
ples. This would also enable the Congress to
consider simultaneously appropriations both for
our own Armed Forces and for assistance to
friendly forces. In this way, these two interre-
lated elements of our military budget can be bet-
ter integrated and balanced, and the effectiveness
of both increased. I recommend also that these
defense assistance funds be authorized as our own
military procurement funds are authorized,
whether this be on the present basis — available
until expended — or as it may be modified in the
future. Policy guidance for both military assist-
ance and defense support would, of course, be ef-
fected by the President through the Secretary of
State.

For these two types of defense assistance pro-
grams in fiscal year 1958 I recommend appropria-
tions totaling $2.8 billion in a separate title of the
Department of Defense appropriation. Of this
sum, $1.9 billion will be for military equipment
and services. The remaining $900 million will be
for defense support.

As a third major legislative action, I recommend
that long-term development assistance be provided
from a Development Loan Fund.

Our assistance to less developed countries can
add only in limited degree to their own resources.
Nevertheless, if so provided as to encourage these
peoples to help themselves more than they can
now, it can make a critical difference.

This objective requires a clear statement of our
intention, in our own national interest, to help
the people of less developed countries in their
effoi'ts to develop their economies. It requires
also a greater assurance of continuity.

Development assistance programs are man-
aged as effectively and economically as possible
under the present system but suffer from major
difiiculties. One is that the present law makes
funds available only from year to year with no
assurance of continuity. Obviously, sound eco-
nomic development is not a year-to-year undertak-
ing but a continuing process. Another difficulty is
closely i-elated. Under present law fluids are re-
quested each year on the basis of estimated country
programs. This leads to the establishing of
levels of aid for each counti-y that have to be pre-
maturely formulated. Thereafter they become
difficult to change without risking misunderstand-
ing on the part of the countries we help.

In addition, even the personnel needed to admin-
ister these programs, most of whom must be
highly skilled technically, cannot be assured of
more than short terms of employment. This
makes it exceedingly difficult to recruit and to hold
good personnel.

Countries seeking and meriting our help should
take increasing responsibility for carefully plan-
ning the projects which they need and can justify.
It is no less important that our aid be geared to
these projects and that our continued assistance be
related to the progress being made in carrying out
these projects.

That there may be greater continuity, efficiency
and economy, and other nations encouraged to
greater self-help, I recommend that the Congress
establish a Development I^oan Fund to finance
specific projects and programs which give promise
of contributing to sound development. This fund
would be used not for short-term emergency re-
quirements but for economic development of long-
term benefit to the borrowing coiuitry.

I visualize that assistance from this fund would
be provided essentially on a loan basis. Such
loans should not compete with or replace such
existing sources of credit as private investors, the
International Bank, or the Export-Import Bank.

These loans should be made on a reasonable ex-
pectation of repayment in dollars or local cur-
rencies, even though we should recognize that this
expectation would be based on confidence in the

June JO, 1957

923

long-range development of the borrowing country
and on hope for an improved international polit-
ical climate rather than on presently demon-
strable financial soundness.

The fund would closely coordinate its opera-
tions with existing lending institutions. It could
directly and independently provide financing or
do so in conjunction with such institutions. A
major purpose would be to promote — not impede —
the flow of private investment, and to this end the
fund should have authority to engage in appropri-
ate financing operations. Properly operated, it
should increase sound activity by these other
sources of credit and investment.

In order to avoid needless administrative dupli-
cation and to assure coordination with our foreign
policy objectives, I believe the fund should be
established and administered in the International
Cooperation Administration.

To achieve its objective, the fund should ini-
tially command sufficient resources to finance its
operations during the coming 3 fiscal years. Only
thus can we break away from the advance country
programing and other operating practices which
now encumber and complicate the administration
of development assistance. Lacking such assur-
ance of continuity, the fund would be little more
than a new name for continuing, with minor im-
provement, the present practices.

I ask the Congress, therefore, for an initial ap-
propriation for fiscal year 1958 and also for au-
thority for the fund to borrow from the Treasury
in succeeding years, within stated limits. Such
borrowing authority has been used to finance many
other United States lending operations. I believe
this financing mechanism is well suited to the
character of the fund.

In order to get the fund under way in its first
year, not less than $500 million should be appro-
priated— an amount which is included in the total
request for new funds later presented in this mes-
sage. I anticipate a substantial increase in sound
requests for assistance in the following 2 years, as
countries' development programs move forward.
I therefore expect the fund to require capital of
$750 million in each of the fiscal years 1959 and
1960.

In order to accomplish the purposes of the fund,
sufficient capital must be provided now. To
create a fund for long-term economic development
while denying it the means to succeed would be to

924

deceive ourselves, discourage our friends, and dis-
sipate our money.

The technical cooperation program is one of the
most valuable elements of our entire mutual secur-
its effort. It also should be continued on a long-
term basis and must be closely related to the work
of the fund. I therefore propose that the Con-
gress authorize technical cooperation on a continu-
ing basis while continuing to appropriate funds
on a yearly basis as is done now. For fiscal year
1958 1 request an appropriation of $152 million for
this program.

"Special assistance" I recommend be established
as a separate category of aid to serve three major
purposes :

First, to provide, primarily by grant, economic
assistance to meet needs of importance to our
country which cannot be properly met by the basic
types of assistance.

Second, to meet unforeseen additional military
or other requirements above the funds pro-
gramed and requested. This I expect to be of
particular importance during the initial year of
the revised program.

Third, to be prepared to meet emergencies and
contingencies that require waiver of certain re-
strictive legal provisions to protect the Nation's
security interests. I request authority to waive
these restrictions on the use of appropriated fimds
in the same amount as now provided. Part of the
additional needs in the Middle East which I dis-
cussed before the Congress last January ^ will be
provided from such special assistance.

For these three purposes of special assistance —
for which appropriations should be made an-
nually— I request $300 million of new funds for
fiscal year 1958. This sum includes $100 million
to cover already anticipated requirements and
$200 million for reserve and contingencies.

I should like to not« especially one of these an-
ticipated requirements. I refer to a program —
malaria eradication — which will appear separately
in the bill proposed to the Congress but will be
financed from the special assistance fund.

Malaria is today the world's foremost health
problem. Each year it attacks 200 million people,
brin<rin<r death to 2 million and causinir enormous
suffering and economic loss in many areas. Today
it is practicable to end this scourge in large areas

' Bulletin of Jan. 21, 1957, p. 83.

Department of Slate Bulletin

of the world. I propose that the United States
jom with other nations and organizations which
are already spending over $50 million a year on
antimalaria activities. In 5 years these activities
are expected to eradicate this disease.

In addition to the programs already discussed,
$113 million is required for multilateral programs,
the program for peaceful use of the atom, and the
administration of the nonmilitary programs.

It is especially important to continue our con-
tributions to United Nations and other interna-
tional programs in the fields of technical coopera-
tion, assistance to refugees and migrants and chil-
dren's welfare. These contributions, augmented
by the contributions of other nations, will enable
these organizations to continue their valuable
work. I believe participation of the United
States in these endeavors should be continued at
substantially the present level. I also request
continuance of our program to assist escapees from
Communist despotism.

Before the United Nations General Assembly
in December 1953, the United States first offered
to assist other countries and to share with them
its technology in the peaceful application of
atomic energy. Our mutual security programs
for fiscal year 1958 include additional funds to
implement this offer by providing assistance in
financing research reactors, other equipment and
services to the growing number of coimtries en-
gaged in peaceful nuclear activities.

The total request for new funds for fiscal year
1958 is $3,865 billion, a sum $535 million less than
estimated in my budget message last January.'
Nearly all of that reduction is made possible by
savings in the military assistance program in an
amount of $500 million, which, if carried over, can
be used to meet program needs of fiscal year 1958.
This sum is not deferred spending but a real sav-
ing. These savings are largely attributable to a
reduction in spare parts requirements based on
experience in the actual use of our equipment by
the forces we are assisting, reduced needs result-
ing from better planning with our allies, and a
continuing improvement of the administration of
the program. I ask that this $500 million be
carried over to fiscal year 1958.

government. All of us want taxes reduced when
possible without injury to our country.

There is, however, only one sound way for us
to achieve a substantial tax reduction. That way
is to succeed in waging peace, thereby permitting
a substantial cut in our heavy military expendi-
tures. A substantial cut in these expenditures, in
the face of present world conditions, would be
foolhardy.

Similarly, and for the same reason, refusal to
give adequate support now for our crucial mutual
security programs could hardly be more ill-
advised or ill-timed. It would risk not only the
ultimate attainment of the tremendous military
savings to which we all aspire; by encouraging
aggression and discouraging our friends, it would
also risk forcing our own defense spending to a
level far higher than it is today. In this kind
of a gamble, American lives are just as much in
the balance as American dollars.

The Congress must also weigh these facts :

First, a substantial cut in defense assistance
would force a reduction in the strength of Allied
forces. Thereby the risk of local Communist ag-
gression would be increased. In order to forestall
that, we would have to expand our own forces and
station more of our youth abroad, or else supinely
accept Communist expansion at the expense of
the free world. I need hardly point out that such
a procession of events would sooner or later force
an increase in the number of young men inducted
into our forces as well as a substantial increase
in our own defense cost.

And second, we simply cannot afford to blight
the hopes of the newly independent peoples who
turn to the free world for help in their struggle
for economic survival. Should we do so, these
peoples will perforce be driven toward Commu-
nist or other totalitarian solutions to their
problems.

I know of no precise relation between economic
well-being and responsible political development.
Yet continued poverty and despair are conditions
that will foredoom moderate political life in these
countries. If the best tliat these free govern-
ments can offer their peoples is endless hopeless-
ness and grinding poverty, then these govern-
ments will surely fall. Certain it is that our
peace, our political freedom, and our prosperity

We are — all of us — seeking to cut the cost of
June 70, 1957

' For excerpts from the President's budget message, see
ihid., Feb. 4, 1957, p. 163.

925

would not long survive the sweep of Communist
despotism over these new nations.

Failure to provide adequate funds to help these
struggling nations move forward could well be-
come tragically expensive to every citizen in our
comitry.

Our mutual security programs have become,
during the past 10 years, proven instriunents of
tremendous power for winning our struggle for
peace. The proposals I have made for their im-
provement stem equally from the legislative and
the executive branches. I urge the Congress to
join with me in giving these programs the
strength which the present and future security
of our Republic requires.

DwiOHT D. Eisenhower

The White House, May 21, 1957.

STATEMENT BY SECRETARY DULLES <

I have come before you to discuss the authori-
zation which we are requesting for our future mu-
tual security programs.

As noted by the Senate Special Committee [To
Study the Foreign Aid Progi-am] , the money we
spend abroad is not on a single program. So-
called "foreign aid" is a term that is given to
several quite distmct programs. Each of these is
addressed to different purposes. Each employs
separate means. Each must be considered on its
own merits. It is to these distinctive programs
that I address myself.

I shall try in each case to tell what foreign-pol-
icy purpose the program serves. I shall explain
how the executive branch believes that these pur-
poses can, in the next fiscal year, be better de-
fined and better served.

There are, in essence, four major programs :

First, the mutual defense assistance program,
which provides weapons and military equipment
and economic support for allied military forces
and facilities;

Second, the development assistance program,
which helps free countries achieve economic
growth ;

Third, the related technical assistance program,
through which we share our skills with these coun-
tries ;

Fourth, the special assistance programs.

* Made before the Senate Foreign Relations Committee
on May 22 (press release 310).

through which we meet particular needs and emer-
gencies that camiot be met by the three preced-
ing programs.

Mutual Defense Assistance

I do not have to review with you the magni-
tude of the Soviet and Chinese Communist mili-
tary threat or the fact that no free country can
obtain adequate security through its own re-
sources alone. This fact has led to the creation of
a collective security system which binds us and 42 '
other free countries in a common defense against
a common peril.

Since 1950 we have provided around $17 billion
in military equipment plus supporting economic
assistance to our allies' military programs. Dur- j
ing this same period our allies have spent over
$100 billion for defense, and they have provided
manpower for the armed forces of the free world, I
and they have provided sites for highly valuable
bases for our and their forces.

Without our assistance these allies' military pro-
grams could not have been carried out. With
these programs we are enabled to spend far less
on our own military programs — and to achieve
far greater security — than would otherwise be the
case.

Collective security is truly a case in which the
whole is greater than the sum of the parts. And
the instrument which creates the whole out of
these parts is our mutual defense assistance pro-
gram.

This program consists of two elements :

First, the provision of military equipment to
friendly forces. This is what, in the past, has usu-
ally been called military aid.

Second, economic aid given to allied countries
to compensate their economies for contributions
made to the common defense when these countries
cannot imaided make the contribution judged nec-
essary. Many of the less-developed countries, such
as Korea, Formosa, and Viet-Nam, cannot main-
tain the desired forces without some outside help,
and sometimes the provision of essential facilities
for the common defense involves burdens for
which compensation is appropriate.

In the past much, but not all, of this aid has been
called defense support. But the phrase has also
been used to include assistance to some of these
same countries for other purposes, such as eco-
nomic development.

926

Department of Slate Bulletin

This labeling produced misunderstandin<^ both
at home and abroad. We believe that what in the
past has been called defense support should here-
after be confined to what is distinctly given to
enable a country to provide an effective military
conti'ibution. Development assistance to stimu-
late economic growth should be dealt with sepa-
rately.

For fiscal year 1958 we are asking for $1.9 bil-
lion for the provision of weapons and military
equipment and $900 million for true defense sup-
port. This totals $2.8 billion. It is approximately
three- fourths of what we are asking the Congress
to appropriate for all the mutual security pro-
grams.

Both these types of defense assistance, military
equipment and support, have more in common in
point of purpose with other elements of our own
defense program than they do with other types of
foreign aid. They contribute to and maintain our
military security just as expenditures for our own
forces do.

That is why the President has recommended
that defense assistance should be recognized and
treated as an essential element of our own world-
wide national defense effort. To do this effec-
tively, he requests that appropriations for mili-
tary assistance and for related defense support
should now be so authorized that hereafter they
may be included as a separate part of the regular
appropriations for the Department of Defense.
Both would continue under the policy guidance of
the President and the Secretary of State.

Requirements for defense are substantial, but
they are necessary. We are, of course, actively
seeking a sound and safeguarded basis for recipro-
cal reductions of armaments, which weigh heavily
upon our country, the Soviet Union, and indeed
nearly all nations.

It is not easy to reach such an agreement. Ex-
perience has demonstrated that agreements with
the Communists are not dependable so long as
they are merely based upon paper accords. Good
faith is not a factor which can be relied on to as-
sure continued adherence by Communists to the
terms of an agreement. Therefor© the free na-
tions cannot safely reduce their military strength
merely in reliance upon promissory agreements by
the Soviet rulers to reduce correspondingly. We
do not, and will not, rely upon Soviet promises
alone. There must be adequate means to verify

performance and to gain increased protection for
the free world against surprise attack. We do
seek an agreement that will be in the mutual in-
terest of the parties, an agreement that would
decrease the danger of war.

We find it hard to believe that the Soviet rulers
will not in their own self-interest eventually ac-
cept such mutual supervision and control as will
permit of lightening the burden of armament and
will provide to both sides a better prospect for
a just and durable peace.

We do not know today whether the Soviet lead-
ers consider that the benefits of an armaments
agreement justify their submitting to a system of
adequate inspection. But even on the most hope-
ful estimate the first steps of armaments reductions
will have to be carefully calculated and carefully
taken. It would be folly now, in the absence of a
safeguarded agreement for the inspected recipro-
cal reduction of armaments, to weaken in any man-
ner the collective security system which provides
the greatest deterrent against aggression at the
least cost.

Economic Development

I turn now to tlie economic development aspect
of mutual security.

We propose the establishment of a development
loan fund to assist the economic development of
other independent nations. The Senate special
committee has found that this "is in the interest
of the United States." This statement is particu-
larly, though not exclusively, applicable to 19 new
nations which have come into existence since the
end of World War II. Tliese nations contain
nearly a third of the world's population. Most
of them are close to the Sovietr-Communist China
bloc. They are nations where poverty is age-old.
The per capita annual income of most of the
peoples of these nations is well below $100 a year.
Their food production is at levels of bare sub-
sistence inadequate for hard productive work.

It is important to us that the people of these
nations should remain free, that their strategic
lands should not fall under Communist control,
that their resources should be available to their
own people and in commerce with other free
nations.

For generations these people have fatalistically
accepted stagnation. But now their mood is
different. Two intense emotions now grip the

June 10, 7957

927

peoples of these new nations. The first is a desire
to maintain and strengthen their newly won politi-
cal freedom. The second is a determination to
raise their pitifully low standards of living and
get started quickly on the inevitably long road
to economic betterment.

But the obstacles to gi-owth are substantial.
There is a shortage — sometimes an absence — of
tecluiicians. The governments are inexperienced.
With incomes at the barest subsistence levels, very
little can be saved and invested. Without outside
help, the prospects of economic growth are indeed
very slim.

These people are determined to move forward.
If they do not succeed, there will be increasing
discontent which may sweep away their moderate
leaders of today and bring to power extremist
leaders who will resort to extremist measures fos-
tered by international communism.

Today hundreds of millions in these countries
seek the answer to this simple question : Do politi-
cal independence and freedom mean economic
growth ? If these peoples do not feel that in free-
dom they get growth, then freedom will be on its
way out in much of the world.

It is in our interest to help to demonstrate that
freedom and growth go hand in hand. That is
the conclusion of your special committee, as it is
of the President.

The question then becomes, what is the most
economical and effective way to do this?

The recommendation of the President and the
conclusion of your own special committee is that
this should be done through the establishment of
a development loan fund.

How should such a fund work ?

For the past few months the executive branch
has given lengthy and detailed study to many as-
pects of this question. We have had advice from
many quarters. We have reached a number of
conclusions. These conclusions are sufficiently
firm, detailed, and well-founded to make us feel
that the fund should be founded now, without
another year's delay.

Wliat are some of the essentials ?

First, the recognized purpose of the fund
should be to assist the less-developed free coun-
tries to get economic growth under way.

Second, the fund would operate on terms of re-
payment. A substantial part of its activities
should be in loans, but it should also be em-

powered to use other banking and financing ar-
rangements, such as credits and guaranties, in
carrying out its purposes. It could not, however,
make grants. Its loans would be made available
on repayment terms less rigid than those of exist-
ing institutions. Repayment could be in foreign
currencies as well as dollars, and interest could ,
be waived or suspended. I

The fund would primarily be an instrumen-
tality of foreign policy and as such take greater
financial risks than those acceptable to existing
institutions. The fund's expectations of repay-
ment would be based, however, on confidence in
the long-range future of the nation it is helping.
If the fund achieved its object, as I believe it
would, then confidence would prove justified.

Third, the fund would seek cooperation with
private investors and established lending institu-
tions. It could participate in joint fuiancing with
private investors, the World Bank, or the Export-
Import Bank, adjusting its own repa}'ment claims
to those of these others. It would not loan its
funds where other loans and private investment
were available. Properly administered, the fund
would not reduce but would increase the effective
flow of activity through normal channels of
finance.

Fourth, the fimd could be used only for de-
velopment projects and programs which seem
tecluiically and economically sound and which
could be expected to contribute to the economic
progress of the borrowing country and to the
long-range interest of the United States in the
welfare of that country. It would not be used to
meet emergencies or other needs for short-term
assistance. Continued financing by the fund to
any coimtry would depend upon that country's
record of performance.

Fifth, a substantial part of the financing under-
taken by the fund would be devoted to basic pub-
lic works such as transport, communication sys-
tems, power installations, harbors, irrigation and
drainage projects — the capital needed to create
the economic environment in which private initia-
tive can come into play. The fund could also use
its resources to support local development banks
and private enterprises engaged in developing the
countries we seek to help.

Sixth, the fund sliould be established upon a
basis of continuity with suHicient capital for
several years' operations. As I said here last
month, economic development is a long-term

928

Department of State Bulletin

process." It is not an annual event. If our aasist-
ance is to be useful at all, it should be provided
on a sustained basis that is consistent with the
lonfi-terni nature of the job to be done.

It is not necessary that all the capital of the
fund be provided at once. But it is essential that
there be initial pi-ovision for future avaihibility.
For this reason tl^e President has asked that there
be provided tliis year an appropriation of initial
capital and tlie autliority to borrow additional
capital from the Treasury in the second and third
years. Such borrowing authority has been used
to capitalize other ITnited States lendinji; agencies.
These additional funds which would be borrowed
from the Treasury would not be available for
obligation luitil such second and third year. How-
ever, the fact that they would be available will
give the countries we wish to help and our own
administrators the assurance they need to i)lan
ahead.

This new approach we contemplate requires
that we get away from amiual authorizations or
appropriations. These inevitably tend toward a
system of "illustrative programs" as a basis for
justifications. These are not compatible with the
assurance of continuity essential to good planning
and to the new long-term loaning concept. Tliey
are not compatible with cooperation witli such
organizations as the Ibrd and Export-Import
Bank, wiiich operate on a long-term, businesslike
basis with established capital.

The President has requested an appropriation
of $500 million to be available for the fund in
fiscal year 1958 and authority to borrow $750 mil-
lion in fiscal year 1059 and the same sum in fiscal
year 1960. Any unobligated balances of any year
would be carried forward as part of the fund's
working capital.

The smns the President has requested are con-
servative figures. The two reports made to your
special committee which relate to a development
financing program both conclude that a loan fund,
to be effective, should be able to finance develop-
ment activities at a higher rate than at present.
This was also the conclusion of the International
Development Advisory Board, which recom-
mended that "the initial Congressional appropri-
ation for the Fund should be sufficient for a sub-
stantial inci-ease in capital investment and tecli-
nical assistance programs.'' Anotlier study, that

"■ Bulletin of Apr. 29, 1957, p. 675.
June JO, 1957

427612—57 3

of the Kescarcli and Policy Committee of the
Committee for Economic Development, has sug-
gested an initial 5-year program at the rate of $1
billion per year in addition to our existing level
of expenditures for economic assistance.

One of the witnesses before your special com-
mittee rather aptly compai-ed economic develop-
ment with getting an airplane off the ground.
You have to achieve a certain minimum rate of
speed to take off. It would not be prudent to in-
vest our resources in development programs which
are too small to offer any hope of eventually
achieving a self-sustaining rate of growtli.

What of the future cost and direction of fi-
nancing under the fund? There is a popular
idea that the underdeveloped areas are a bottom-
less pit. In reality, as the Committee on Eco-
nomic Development says in its report: "The
amount that can be productively invested in the
underdeveloped world is not enormous but is in
fact rather strictly limited." The duration of
the need for financing of the kind the fund would
supply is also reasonably limited. It is not our
purpose to finance the development of these na-
tions to the level of our own economy. It is
rather our purpose to help them gain a momen-
tum of economic progress which will make it
possible for them to go forward on their own
capital formation with outside assistance con-
fined to private investment and other normal
sources of financing.

We should think of the fund as a long-term
operation but not as going beyond the time wlien
it serves the enlightened self-intei"est of the
ITnited States. As it serves its purpose, the calls
upon it should decline.

Technical Cooperation

Tliere is universal agreement that the techni-
cal cooperation program is valuable and should
be continued on substantially the present basis.
The executive branch so recommends. We be-
lieve, furthermore, that this program lias proved
its worth as a long-term instrument of United
States policy and that it should be authorized
on a continuing basis.

The President has recommended an appropri-
ation of $168,900,000 for this program next year.
This figure includes, in addition to our regular
bilateral program, our contribution to the tech-
nical assistance program of both the Organiza-

929

tion of American States and the United Nations.
Last year the Congress recommended that our
proportionate contribution to the United Nations
Expanded Program of Technical Assistance
should be reduced in fiscal year 1958 to 331/3 per-
cent from the present level of 49 percent. Since
that date, the Subcommittee on Tecluiical Assist-
ance of tlie Foreign Relations Committee has rec-
onunended in its final report that this proviso be
reconsidered. This report favored a reduction
of the percentage of the United States contribu-
tion but urged that "precipitous action to this
end should not be taken" and noted that a reduc-
tion to 33% percent in 1 year might have dele-
terious effects on this important United Nations
activity. We agree with these conclusions and
believe tliat any reduction should be phased over
several years. The President lias accordingly
recommended that the level of our contribution
be set at 45 percent for fiscal year 1958.

Special Assistance

The final category of our aid is special
assistance.

There are some programs, like the malaria
eradication program, that do not fit into any of
the preceding categories. There will inevitably
be occasions when it will be in our national in-
terest to furnish assistance to friendly nations
which is not designed to support our common
defense effort and which could not properly be
handled through the development fund or tech-
nical assistance.

There are bound to be emergency situations
which we cannot foresee, and there are bomid
to be efforts we need to support without pros-
pect of repayment.

International communism is constantly prob-
ing to discover and exploit weak points within
the free world. We cannot tell in advance where
these weak points will develop or the amount of
pressure which international communism will
bring to bear. We must have reserve funds
which can be thrown into the breach if we are
to conduct successfully the "cold war" in which
international communism has engaged us.

During tlie past few years there have been
emergency situations in many places where im-
mediate grant aid was necessary. Such situa-
tions have arisen in relation, for example, to Iran,
Jordan, Hungarian refugees, and Guatemala. It

can be soberly estimated that international com-
mimism would have gained spectacular victories
and that freedom would have suffered tragic de-
feats if the President had not had substantial
discretionary fimds to use to meet unpredictable
emergencies. The fact that the President has
had such funds has meant on net balance a vast
saving to the cause of freedom to which we are
dedicated.

Aid of this nature is designed to meet imme-
diate needs, not to finance long-term programs. '
It is appropriate that it should be authorized
anew each year.

The President has asked for the authorization
of an appropriation of $300 million for special
assistance.

This figure includes three separate elements.
Approximately one-tliird of it has already been
programed for firm requirements, such as our
malaria eradication plan and certain special
coimtry programs. Another third is designed to
provide for recognized but unprogramed needs,
including further assistance for the Middle East
under the American Doctrine. In addition, we
need continuation of the special presidential fund
to meet unforeseen contingencies.

Conclusion

The total program which I outline reflects the
results of the intensive study which has been given
to this subject during the past year. Such study
has been given by the executive branch of govern-
ment, by both Houses of Congress, and by special
groups of qualified persons who have been asked
by the President and by the Congress to study
this problem.

These studies indicate no substantial disagree-
ment as to the need of mutual security programs
dealing both with military and nonmilitary mat-
ters. There is also, we believe, an unusual con-
sensus as to the general order of magnitude which
these programs should assume. There is also a
large measure of agreement that our mutual se-
curity programs can be better organized than has
been the case heretofore. The executive branch
of government shares that view, and it is reflected
in the President's message and the proposed legis-
lation, and in this presentation.

Ijet me recall, in conclusion, that the Constitu-
tion of the United States specifies as among the
basic purposes of our Government to "provide for

930

Department of Slate Bulletin

the common defense . . . and secure the blessings
of liberty to ourselves and our posterity." Under
today's conditions a common defense is most effec-
tively promoted and the blessings of Uberty most
effectively secured by the mutual security pro-
grams I have described.

We know full well that this committee has ably
and conscientiously studied this whole problem.

We have taken into account its views, particularly
as expressed in the report of the Senate special
committee published on May 13.° The executive
branch of government welcomes and will seek to
merit the cooperative spirit which is manifested
by this committee.

' S. Kept. 800, 85th Cong., 1st sess.

Action Highlights of the Mutual Security Program, July 1-December 31, 1956

EXCERPTS FROM THE ELEVENTH SEMIANNUAL REPORT TO CONGRESS'

President's Letter of Transmittal

To the Congress of the United States:

I am transmitting herewith the Eleventh Semi-
annual Report on the operations of the Mutual Se-
curity Program, for the period July 1, 1956, through
December 31, 1956.

Under present world conditions, I am convinced
that this program is, more than ever, essential to
the security of the United States.

X^ (.Ji.S-yL'CZ^U^tUt.^ A.a<A^

The White House,
April 26, 1951

Developments on the mternational scene dur-
ing the second half of 1956 had a direct impact
on mutual security operations. The situation
growing out of actions in the Suez area in the
latter part of the year created a number of prob-
lems bearing on program activities in countries
of the Middle East. The brutal Soviet repression
of Hungary's bid for independence forced tlion-
sands of refugees to seek escape from tyramiy and

' H. Doe. 160, 85th Cong., 1st sess. ; transmitted on
Apr. 30. Reprinted here are excerpts from chapter I.
Chapter II of the report deals with "Use of Fiscal Year
1957 Funds," and chapter III is entitled "Other Aspects
of the Mutual Security Program."

brought emergency problems of transportation,
care, and placement. The International Co-
operation Administration acted to adjust its
operations and use its resources in response to
these pressing situations.

During the period also, important actions were
taken under mutual security jn-ograms in other
parts of the world. In the field of collective se-
curity, encouraging progress was made in over-
coming some of the difficulties which had arisen
in the Nato defense organization, particularly in
the restoration of close working relationships
among the member nations. The worldwide mili-
tary assistance program continued to help friendly
nations in Europe, Asia, and other regions build
up their capabilities for keeping themselves strong
against aggression.

In the less developed areas of the world, ad-
ditional measures were taken to support in-
dependent nations in their efforts to develop key
segments of their economies so that they could
become self-sustaining partners of the free world
community and contribute fully to its total se-
curity and well-being. Advances in technical
cooperation provided further evidence that this
program is an effective instrument in assisting
other free people to acquire the techniques and
knowledge they need to help themselves to a better
and more productive life.

The latter half of 1956 also saw a number of
comprehensive studies launched, directed to a re-

June JO, J957

931

view of some of the basic policy and operational
aspects of the mutual security program.

ICA ACTIONS IN THE MIDDLE EAST AND HUN-
GARIAN CRISES

Actions in the Middle East

Events centering around the outbreak of hos-
tilities in the Suez area and the closure of the
canal ovei'shadowed other developments in the
Middle East during- the 6-month period and had
a marked influence on mutual security programs
in that area. The ensuing disruptions affected
the carrying out of going programs, upset sched-
uled uses of funds, and necessitated adjustments
in plans for future operations.

With the outbreak of fighting in tlie Suez in
late October, virtually all Ica personnel were
withdrawn from Egypt, Israel, and Jordan. In
a number of cases, however, those countries were
able to sustain project activities in some measure
with their own persomiel. In countries farther
removed from the center of hostilities, the impact
on programs under way was not so pronomiced,
although modifications had to be made in the com-
position of the 1957 fiscal year programs because
of transportation problems created by the closing
of the Suez Canal.

Middle East Crisis Cuts Region's
Petroleum Output

200

150

100

(Million Metric Tons)

1955 1956

Quorlerly at Annual Roles

Among 5,300 Americans withdrawn from Mid-
dle East countries were approximately 475 Ica
employees and their families who were trans-
ported to safe havens in the Mediterranean area.
Because conditions in the affected countries were
still inicertain at the end of tlie year, Ica reas-
signed to other missions those employees who
were eligible for reassignment or whose services
were required elsewhere. Some personnel were
placed temporarily in nearby Ica missions in an-
ticipation of returning to their former posts
should conditions permit a restoration of opera-
tions.

The new political climate in the Middle East
and the economic consequences of the Suez closure
and subsequent military actions posed complex
problems in the planning and execution of eco-
nomic activities in the area.

The loss of revenues, due to disruption of canal
traffic and destruction of oil pipelines and pmnp-
mg stations in the region, had repercussions in
nearly every country. Heavy losses were suffered
by Iraq, Saudi Arabia, and Syria. Iraq lost 75
percent of its monthly oil revenues after the pipe-
lines of the Iraq Petroleum Company were blown
up in Syria. Because of substantial exchange re-
serves, however, Iraq was able to maintain expend-
itures for economic development. Syria lost, the
revenue normally derived from allowing oil to be
transported through its territory. Saudi Arabian
oil revenues also declined. Beginning m Decem-
ber, its monthl}' revenues Mere about 30 percent
below the level prior to the Canal's closing.

Commodity prices in India moved further up-
ward with tlie slowdown of imports of food
grains. The Suez crisis accentuated the eco-
nomic difficulties which India was experiencing
with respect to its second 5-year plan. In Egypt,
the sequestration of foreign business establish-
ments and tlie loss of revenue from tlie canal re-
sulted in widespread unemployment and seriously
reduced imports. Commodity prices in Israel
soared, and existing plans for economic improve-
ment were highly uncertain.

Such disturbances in normal economic patterns
were causing nations in the Middle East and
South Asia to cliange their plans for economic
development, thereby necessitating adjustments in
United States assistance measures for those coun-
tries. For example, all countries in the area will
probably experience a period of abnormal foreign

932

Department of Stale Bulletin

exchange shortages in greater or lesser degree,
and this factor will need to be recognized in fu-
ture economic j)rograms.

In addition to these econoniic strains, there
were problems arising from the various Soviet
moves in the Middle P^ast region. At the end of
the year, the executive branch was considering
measures which would deal effectively with these
situations. Tliese measures contemplated a clear
declaration by the President and the Congress
that the United States is prepared to help the
countries of tlie area maintain their independence
against Communist aggression and to assist their
efforts to overcome their economic difficulties.'

Relief for Oppressed Hungarians

A major problem was created eai'ly in Novem-
ber by the massed exodus into Austria of Hun-
garian men, women, and children fleeing ruthless
deportation and other oppressive measures by a
government forced upon them by the Soviet
Union after the earlier success of their revolt
against Communist subjugation. Appeals for
help met immediate response from voluntary and
international public agencies. As it became ob-
vious that the needs far exceeded the available
resources of these agencies, governments of free
world countries also responded. Although bur-
dened with its own substantial economic prob-
lems, Austria unhesitatingly accepted these desti-
tute refugees and appealed to the United Nations
and the "Western governments for support in pro-
viding for their mamtenance and asylum.

To help meet the cost of caring for the refugees
in Austria and to provide some aid to the needy
people still in Hungary, $9 million was made
available under the mutual security program
from the President's contingency fund. Of this
amount, $5 million was contributed to the United
Nations to aid in its activities in Hungarian re-
lief. The remainder was used to acquire cloth-
ing, medical supplies, and camj) equipment from
United States military stores and to meet costs
associated witli the supply of United States sur-
plus agricultural commodities. The United
States escapee program was authorized to use $3
million of its regular program funds for emer-

The Flight Of Refugees From Hungary

Oct. 23- Dec. 31, 1956

Total Arrtvols
from Hungary

AUSTRIA J

U.S. ,

U.K.

Germony

Switzerlo.nd

France

Canado ,

17 other
' ' Countries

20,000

13,000

11,000

10,000

8,000

8,000

^ .. ,,,., , , , ..

19,000

^^^^^

himm.^-. ^^

"These measures were embodied in the Middle East
Resolution which was presented to Congress on January
5, 1957. (Bulletin of Jan. 21, 1957, p. 83.)

gency assistance to Hmigarian refugees. Under
title II of Public Law 480, some $15 million worth
of United States surplus foods, including trans-
portation costs, has been authorized for these pur-
poses. Part of this food will go to replace stocks
used by United States voluntary relief agencies in
meeting the initial emergency ; part will continue
to be distributed by the international agencies to
refugees in Austria and people in Hmigary.

The flight of Hungarians into Austria reached
such dimensions that it soon became apparent that
Austria's reception facilities were being hopelessly
overtaxed. Other free nations — the United King-
dom, Germany, Switzerland, France, Canada,
among others — responded to this situation by of-
fering asylum within their borders. On Novem-
ber 8, the President directed that measures be
taken to expedite the processing of 5,000 Hun-
garian visa applications under the Refugee Eelief
Act. Wlien the exodus from Hmigary swelled to

June 10, J 957

933

major proportions, the President on December 1
directed that the remaining available visas under
the Refugee Relief Act be used for Hungarian
refugees in Austria and that 15,000 additional
Himgarians be admitted to the United States
imder the parole provisions of the Immigration
and Nationality Act. He stated that when these
nimribers had been exhausted, the situation would
be reexamined. By the end of 1956, about 20,000
refugees had already departed Austria for the
United States.

DEVELOPING ECONOMIC STRENGTH IN THE
FREE WORLD

The economic assistance provided under the
mutual security program is geared to help meet
those vital economic needs of our free world part-
ners which are part of the framework of our
mutual interests. The military burdens that some
countries must carry because of their proximity
to the threat of Communist aggression, the dif-
ferent positions which various nations occupy in
the scale of economic development, the disparities
in their rates of economic progress, the growing
Soviet activities for economic penetration — all
these mean that the United States programs of
economic assistance must serve a variety of pur-
poses to achieve the ultimate objectives of peace
and progress that we and our free world allies
seek.

DEVELOPMENTS IN COLLECTIVE SECURITY

Foremost among the developments in collective
security during the July-December period were
the reestablishment of Nato unity at the meeting
of the North Atlantic Council in December and
the United States announcement on that occasion
of the inclusion in the current military assistance
program of new weapons for the forces of other
Nato members. Other noteworthy actions in-
cluded the joint military exercises under the
Southeast Asia Treaty Organization and the fur-
ther progress made in strengthening the military
capabilities of friendly nations in the Far East.

NATO

The Ministerial Meeting of the North Atlantic
Council in December was one of the most im-

portant in the history of Nato.^ Following close
upon the divergencies of policy growing out of
the Suez crisis between the United States on the
one hand, and the United Kingdom and France j
on the other, the meeting had as its primary pur-
pose the reestablislmient of Nato unity. It was
successful in that good progress was made toward
the restoration of the former close working rela-
tionships among tlie member govenmients. Al-
though they did not disregard past policy differ-
ences, the foreign ministers of tlie Nato countries
reaffirmed tlieir basic unity and confirmed the
necessity for more effective political consultation
and cooperation in the future.

Important steps taken to strengthen the mili-
tary effectiveness of Nato furnished concrete evi-
dence that the member nations continue to regard
the alliance as the essential defense bulwark of the
Atlantic commmiity. j

New Weapons. — Speaking for the United
States Government at the December meeting of the
Nato Council, Secretary of Defense Wilson
pointed out that our belief in the need for con-
tinual modernization of Nato forces is reflected
in the United States militai-y assistance program
for fiscal year 1957; and he expressed our inten-
tion to propose a similar program for fiscal year
1958.

Translating this statement into more concrete
terms. Secretary Wilson announced two impor-
tant steps being taken by the United States to
provide Nato forces with more modem weapons.
One of these is that the military assistance pro-
gram now includes delivery to other Nato forces
of certain new weapons heretofore furnished only
to United States forces. The other is that the
United States is prepared to make available
promptly certain prototype items of new weapons
and equipment, together with appropriate techni-
cal data, to those of our allies who are willing
and able to utilize them for developing their own
modern weapons systems. This latter step fits
into the prograni of mutual weapons develop-
ment which aims to make better use of existing
scientific and teclmological skills in Nato coun- J
tries. "

Secretary Wilson stated also that the ability of
the United States to assist in a weapons modem- J

" For a statement by Secretary Dulles on Dec. 15 and
text of the conimuniqiie issued nt the close of the N.\TO
Council meeting, see Bulletin of Pec. 24-31, 1956, p. 981.

934

Departmenf of Sfate Bullefin

I

ization program for Nato is dependent to a con-
siderable degree on tlie willingness of the other
Nato countries to assume, to the extent that their
resources will permit, an increasing share of the
maintenance costs for their own forces.

New Force Goals. — The December meeting of
the Xorth Atlantic Council also marked the com-
pletion of Nato's 1956 Amiual Eeview, the fifth
such exercise since this procedure was first intro-
duced at Lisbon in 1951. The Council adopted
new firm goals for Nato forces for 1957 and pro-
visional and planning force goals for the two
years following.

The 1957 goals include a number of German
units, the first of which are to be placed under
the Nato command during the summer of 1957.
Military equipment made available under the mu-
tual security program from funds appropriated
in fiscal year 1956 and prior years has assisted the
German Federal Republic to initiate and carry
forward its buildup as a contribution to Nato
defense. Except for limited assistance in train-
ing, none of the fiscal year 1957 appropriation is
to be used to provide any grant aid to the Ger-
man Federal Republic. However, by the end of
December 1956, the German Government had con-
tracted to procure with its own resources a sub-
stantial amount of military equipment produced
in the United States.

Increased Cooperation in Nonmilitary Fields. —
Another major accomplishment of the December
meeting of the Council was the approval of the
recommendations of the Committee of Three, con-
sisting of the foreign ministers of Canada, Italy
and Norway, on ways and means to improve and
extend Nato cooperation in nonmilitary matters
and to develop greater unity within the Atlantic
community.* The recommendations were de-
signed to strengthen the alliance by extending con-
sultation on political and economic matters of
concern to it, even though outside the treaty area.
They would also strengthen the alliance by im-
proving present programs and arrangements for
cooperation in the cultural and information fields.
Such steps would promote a sense of community
that would bind the people of Nato countries
through realization of their common cultural her-
itage and of the values of their free way of life
and thought.

The Nato Council adopted a resolution recom-

' Ibid., Jan. 7, 1957, p. 18.
June 70, J957

mended by the Committee of Three providing for
consideration within the Nato framework of dis-
putes between members before such members re-
sort to any otlier international agency. Such
activities are especially provided for by the
United Nations Charter.

SEATO

At a meeting in the Philippines of the Southeast
Asia Treaty Organization's military advisors in
September 1956, a plan was approved to establish
the office of the Seato Permanent Military Plan-
ning Staff in Bangkok. All Seato members are
now sending military representatives to the plan-
ning staff, and Bangkok will become the com-
bined civil-military headquarters for Seato.

The Seato joint military exercise ALBA-
TROSS was conducted during September-Octo-
ber. A noteworthy aspect was that the Asian
members of the organization — Pakistan, Thai-
land, and the Philippines — were able to contribute
effective forces to the exercise and to engage in
it with considerable distinction. In large part,
this increased military effectiveness can be at-
tributed to United States assistance.

There were other evidences of military progress
on the part of Asian members of Seato. Thai-
land was sending its officers to military schools of
other Seato nations. This type of training fur-
nishes an ideal basis for the mutual exchange of
students among the Seato members and helps to
promote mutual respect and confidence. In the
Philippines, the prospect for continued internal
peace and security remained bright with the
threat of Communist-led rebels reduced by the
operations of the Philippine armed forces. Phil-
ippine operations have been materially assisted by
equipment and supplies furnished through the
United States program of military assistance.

Other Developments in ' Buttressing Far East
Defenses

Republic of Korea. — The program of military
assistance for South Korea continued to make
steady progress toward developing high levels of
efficiency and competence in the several branches
of the Republic of Korea's armed forces. The
logistic capability of the Rok forces was further
improved during the half-year period by such
measures as production and recapping of tires in
Korean plants for military use; operation of a

935

cross-services system to provide more efficiently
the supplies and sei-vices that are common to the
several branches of the armed forces; and in-
creased emphasis on proper care and maintenance
of equipment.

Some construction for South Korean air force
units, as well as work on an air academy in Seoul,
■was in progress at the end of 1956. New ships
for the navy continued to arrive to replace those
that were no longer usable.

Taiwan. — Greater overall efficiency in the
ground forces of Taiwan was obtained through
continued emphasis on training in the military
assistance program. Several measures contrib-
uted to increasing the defense capabilities of the
Chinese navy. Steps were taken to make the
navy more capable of overhauling its own ships;
and material for ship repaii's began to arrive in
the autumn of 1956. The navy's communications
system was revamped to give it greater effective-
ness. As part of a stepped-up training program
for officers, about 150 midshipmen were gradu-
ated from the Chinese Naval Academy in August.

Progress continued also in activities to insure
adequate ground facilities for the increasing ca-
pabilities of the air force, such as improving the
logistic support for aircraft by shortening the
time requii'ed for delivering supplies and fuels.

Japan. — Tlie prestige of Japan's defense effort
is expected to be raised as a result of the forma-
tion of the National Defense Council. This body
is composed of top civilian officials of the Jap-
anese Government and was set up as the highest
advisory organ on basic national defense policy
and plans.

Although Japan's air defense is still in the de-
velopmental stage, many pilots have been trained
and are now flying aircraft assembled by the
Japanese themselves. Japan is steadily improv-
ing its capabilities for producing modern aircraft
and is working toward the goal of assuming
complete air defense responsibility. Some air
base construction was completed during the half-
year; additional constraction was started on bases
for recently acquired jet aircraft.

Japanese groimd foires have been developed to
tlie point where they are now capable of taking
over ground defense responsibilities in lai'ge areas
of the nation. Visible progress was made also in
methods of waging antisubmarine warfare, and
in minesweeping and escort service.

936

Presidential Decision on Aid to Yugoslavia

The Mutual Security Act of 1956, enacted on
July 18, 1956, contained a provision requiring the
termination of aid to Yugoslavia after 90 days
from the date of its enactment unless the Presi-
dent certified that certain conditions prevailed.
Essentially these conditions were that Yugoslavia
is independent of control by the Soviet Union;
is not involved in any program to extend Com-
munism by aggi-ession; and that continued as-
sistance to Yugoslavia would coincide with
United States security interests.

After careful study within the executive branch,
the President reported to the Congress on Oc-
tober 16, 1956, that lie had made an affirmative
determination that these conditions did exist, and
he explained the basis for his decision.^ The
President went on to say that the administration
would continue to follow a policy of permitting
only small, routine and long-planned deliveries of
military equipment mitil the situation could be
more accurately appraised.

At the end of 1956, deliveries of military equip-
ment to Yugoslavia continued to be minimal. De-
liveries of jet aircraft and other items of heavj'
equipment which had been programmed remained
suspended. Although only day-to-day operating
expenses had been autliorized at the end of the
half-year, proposals for economic and technical
assistance were being given serious consideration.^

ACTIVITIES IN TECHNICAL COOPERATION

At the close of 1956, approximately 4,400 Amer-
ican technicians, including those employed under
private contract, were working in more than 50
less developed coimtries of the free world. Dur- ,
ing 1956 also, about 6,300 nationals from coop- 1
crating countries, including some 3,700 in the sec-
ond half of the year, were brought to the ITnited
States to participate in training and orientation
programs, or in some cases were sent to other
countries where training facilities for their j)ar-
ticular needs were more suitable.

Fifty-four United States universities are cur-
rently carrying out major programs in coopera-
tion with the International Cooperation Admin-
istration to develoji and assist local educational

I

'■ Ibid.. Oct. 20, ]0.")fi, p. (!04.

' For a current announcement on aid to Ynfroslavia, see
p. 939.

Department of State Bulleth

i

institutions in 38 countries. These college-to-col-
lege relationships add another dimension to the
approach of the tecluiical cooperation program
and are helping to fill one of the central needs of
the underdeveloped countries — the training of
higher level technical and administrative person-
nel.

Ica's university contract progi-am has been de-
veloping rapidly, and within less than 3 years has
become a valuable means of carrying out effective
projects in the field. There have been some prob-
lems which have arisen in the course of such rapid
expansion of a now concept, particularly with re-
spect to the details of the contractual relation-
ship between Ica as a government agency and the
various American universities which are serving
abroad. During the half-year, Ica launched an
intensive effort, in cooperation with the participat-
ing universities, to iron out these problems by
standardizing and simplifying contractual pro-
cedures with the objective of giving the imiversi-
ties more flexibility in carrying out overseas pro-
grams. Ica has been greatly assisted in this effort
by the advice of the chancellor of one of the co-
operating universities, who has acted as consult-
ant in this matter. New and more satisfactory
arrangements are expected to go into effect in the
near future.

In other efforts to strengthen the technical co-
operation program, several steps were taken to
create greater appreciation abroad of the role of
indigenous private enterprise and to increase the
emphasis on self-help measures.

Encouraging Indigenous Private Enterprise

The key role which domestic private enterprise
can play in achieving economic development and
promoting conditions for democracy is becoming
more fully understood by the governments of the
less developed countries. In many of those coun-
tries, the concept of private enterprise has been
identified in the minds of the people and their
leaders with the evils and the exploitation of old-
time colonialism. In some areas, moreover, there
is little knowledge of how private enterprise facil-
ities of today actually operate; hence there is a
lack of confidence in using them.

In tliis situation, Ica has sought opportunities
to develop a clearer comprehension of the val-
uable contribution which domestic private indus-
try' can make in directing the energies of the peo-

ple of underdeveloped coimtries into constructive
ciiamiels. Some recent examples of Ica efforts
along those lines are :

^ With Ica assistance, a new industrial pro-
ductivity center has been established in Taiwan
whicli is becoming the focal point for the promo-
tion of local private business and manufacturing
activities on the island. The center operates to
improve productivity in small and medium-sized
industrial enterprises by j^roviding training in
techniques of management and by developing a
broader base of skilled labor.

W Ica investment experts have helped free Viet
Nam in establishing development banks to help
promote the participation of local private capital.

^ Two hundred Brazilian industrialists from
top and middle management, graduates of man-
agement seminars arranged under the mutual se-
curity program, recently organized into an active
alumni association. One of the first actions of
this association was to undertake a program to
develop local sources of financing for business
education programs which would replace financial
support from the United States.

k Industrial teclmicians of an American en-
gineering firm under contract with Ica are help-
ing private industrialists in India to increase
plant productivity through more efficient man-
agement and production methods. These tech-
nicians have also assisted Indian industrialists in
preparing new investment plans which incor-
porate improvements in management, factory op-
erations, line production, procurement methods,
and maintenance.

W Though highly industrialized. Japan faces
the problem of improving industrial productivity
and of modernizing management practices of pri-
vate enterprise to accord with the new framework
of the nation's political democracy. A number
of Ica programs of guidance and training in
management and productivity fields have been
under way in Japan. As a result of Ica efforts,
Japanese trade miionists and management repre-
sentatives are showing increased interest in the
need for good labor-management relations in
order to increase productivity and raise tlie stand-
ard of living. Visits to the United States by
Japanese legislators, and business and labor
leaders have encouraged an attitude which is
helping to bring about better management-labor
relations. This is evidenced by a growmg recog-

Jone 10, 1957

937

Appropriations For Mutual Security

CURRENT FISCAL YEAR 1957

THE ANNUAL TREND

Technical Cooperotion

$152

Development Assistance

'$250'

President s
Contingency Fund Other

$100 , — $85

(Millions of Dollars)
8,000

6,000

4,00O

2,000

Nonmilitary

Total: $3,767 Million

1949 '50 '51 '52 '53 '54 '55 '56 '57
Fiscal Years

nition of the merit of grievance procedures, by
some contracts calling for incentive wage systems,
and by a tendency to reduce the frequency of
work stoppages.

k In August 1956, Ica adopted a policy of try-
ing to reserve for loans to private enterprise,
through the host govenmients and their financial
facilities, about 25 percent of the local currency
proceeds for economic development which accrue
from sales of United States surplus agricidtural
commodities under title I of Public Law '180.
Most of the funds reserved for private industry
are loaned to local firms; some ai"e made available
to private companies of the United States and
other free nations. Under agreements reached by
the end of 1956, more than $100 million of title I
proceeds were reserved for such loans to private
enterprise. Of this amount, India accounted for
$55 million.

Increasing The Emphasis on Self-Help

As experience with teclmical cooperation has
grown, there is increasing evidence that the best
long-run returns follow when outside aid is con-
centrated on lieli)ing the less developed cotmtries
in those projects which build up and expand tlieir

own indigenous skills. This emphasis on the idea 1
of self-help enables those countries to make
greater use of their human resources so that they
can better exploit their natural resources and
thereby stimulate economic advancement on a
progressively larger scale.

One illustration of this development of the hu-
man resources factor is the progress made in
Ethiopia in training native teachei-s. About 5
years ago only 30 teachers a year were graduated
from teacher-training courses in all of Ethiopia.
As a result of the education program carried out
through teclmical cooperation, more than 300
teachers were graduated last year, thereby bring-
ing about a large proportionate increase in the
number of persons in Ethiopia wlio are qualified
to train othere.

During recent months, conununity development
programs were expanded in the Philippines and
in Pakistan. These programs are designed to
help peoi)le in rural villages to identify their
needs and to develop and execute their plans to
meet those needs, mainly through their own ef-
forts. Assistance in planning similar j)r()grams
has been requested by Libya, South Korea, Thai-
land, and Afghanistan. The growing apprecia-

938

Department of State Bulletin

tion of the value of the community development
program stems in large part from the evidence of
its success in India, where it has visibly benefited
some 80 million people in rural areas.

For several yeare Ica has assisted the labor
education center at the University of the Philip-
pines. This demonstration project has been so
successful that the Pliilippine authorities took
action on their own in the second half of 1956 to
establish three similar regional centers in various
parts of the country as well as a resident labor
training school in Manila. Also in the Philip-
pines, 33 major governmental reorganization
plans were developed with the assistance of an
American management consulting firm imder Ica
financing. These plans have been approved by
the Philippine legislature and President, and are
now being implemented in the various depart-
ments and agencies affected.

PEACEFUL USES OF ATOMIC ENERGY

The overall program of assisting free nations
in developing the application of atomic energy to
peaceful purposes is being carried out through
the combined efforts of the Atomic Energy Com-
mission, the Department of State, the Inter-
national Cooperation Administration, and other
agencies of the United States Government. With
the Atomic Energy Commission providing the
services of teclinical experts, Ica acts as an ad-
ministrative agency in several fields of the pro-
gram and also performs a number of coordinating
fimctions. During the half-year, the following
noteworthy developments took place in those as-
pects of the atomic energy program for which
Ica had administrative responsibilities.

W Some 55 scientists and engineers, represent-
ing 23 cooperating countries, were brought to the
United States for training in nuclear science and
engineering, in the use of radioisotopes, and in
the liealth and safety aspects of nuclear energy.
Moreover, a high-level Japanese team of 13 par-
ticipants, seven of whom were members of the
Japanese Diet, studied the role of government
and private organizations concerned with policy,
planning or operations in connection with peace-
ful uses of atomic energy.

^ To advance the development and planning
of appropriate regional and country programs in

the field of nuclear energy, Ica concluded a con-
tract in November with the Phoenix Memorial
Project of the Univei-sity of Michigan to provide
tecluiical and advisory services.

k In conjunction with other United States Gov-
ernment agencies, Ica participated in the second
Atoms for Peace Mission to Latin America. The
mission visited Chile, Colombia, Costa Rica, Ecua-
dor, Panama and Peru to assist in forming the
basis for appropriate atomic energy programs in
those countries and to increase the knowledge and
use of radioisotopes.

k To enable the Central Isotope Laboratory
at Siriraj Hospital in Thailand to move ahead in
applying atomic energy in the field of medicine,
Ica completed arrangements for the procurement
of radioisotopes and equipment for that institu-
tion.

^ One of the most notable operations of the
mutual security program in the field of nuclear
energy relates to the establishment of measures to
establish a regional nuclear center in Asia. Im-
portant steps were taken during the half-year
toward getting this project under way.

U.S. To Modify Restrictions
on Military Aid to Yugoslavia

Press release 289 dated May 14

In the statement of October 15, 1956, announc-
ing his decision to continue to furnish United
States aid to Yugoslavia,^ the President declared
that, in the matter of military assistance, jet
planes and other items of heavy equipment would
not be delivered until the situation could be more
accurately appraised in the immediate future.
During the period of approximately 6 months in
which this directive has been carried out, a careful
examination of all aspects of relations between the
United States and Yugoslavia has continued to
take place, and, on that basis, certain conclusions
have now been reached.

Intervening events have confirmed the Presi-
dent's basic finding that Yugoslavia is and firmly
intends to remain independent and that it is in the
interest of the United States to support this Yu-
goslav resolve to be free of foreign control.
Soviet hostility to the cause of national inde-

" Bulletin of Oct. 29, 1956, p. 664.

June 10, 1957

939

pendence in Eastern Europe, which has led to the
renewed harassment of Yugoslavia, makes it even
more important that the United States adhere
to its established policy of lending support to
those countries seeking to withstand Soviet pres-
sures.

The American program devised several years
ago for helping the Yugoslavs to equip their
armed forces at an adequate level commensurate
with Yugoslavia's local defense needs is still being
carried out. At a time when the neighboring
Warsaw Pact nations are still being reequipped
with modern Soviet military supplies, the sus-
pension of certain U.S. shipments to Yugoslavia
since last summer has produced serious disad-
vantages. Yugoslav soldiers, sailors, and airmen
trained to operate and maintain American equip-
ment have lacked even those quantities of items
needed to keep up their training and proficiency.
Ground installations, and particularly jet-plane
fields built by the Yugoslavs at sizable expense,
are lying idle, and imbalances in the availability
of necessary materiel have developed which have
ailected Yugoslavia's state of defensive prepared-
ness.

In the light of these circumstances, the execu-
tive branch, with the approval of the President,
has believed it both appropriate and desirable to
modify the restrictions imposed last October on
military aid deliveries to Yugoslavia. The De-
partment of Defense has been authorized to re-
sume the shipment of various items, including
jet aircraft, procured under programs drawn up
in past years but temporarily withheld from trans-
fer to Yugoslavia.

Because of a number of factors, including com-
peting demands on availabilities, the deliveries
will have to be made at a more modest rate over
the next few years than previously planned. It
is anticipated furthermore that tlie shipments will
not exceed certain quantities required by Yugo-
slavia to maintain those defensive potentialities
inherent in the training of personnel and main-
tenance of ground installations. This will, how-
ever, be important because it would permit of a
rapid utilization of that potential if and when
that should be necessary in future international
developments.

The Department of State has noted with satis-
faction that this decision by the executive branch
accords with the findings of Allan Kline, the

special consultant of the Senate Committee on
Foreign Relations, who recently visited Yugo-
slavia to examine the U.S. aid program and who
has recommended in his report that military ma-
teriel deliveries be reinstituted.

Alleged Intrusion of Air Attache
Into Czech Restricted Area

Press release 265 dated May 6

Following is the text of a note transmitted on
May 5 by the ATnerican Embassy at Prague to the
Czechoslovak Foreign Ministry in reply to a note
from the Foreign Ministry alleging an intentional
intrusion by the American Air Attache into a
restricted area.

The Embassy of the United States of America
presents its compliments to the Ministry of
Foreign Affairs and has the honor to refer to the
Ministry's Note number 115.231/57-ABO of May
4, 1957,^ as well as to the conversation of Her
Excellency the Deputy Minister for Foreign Af-
fairs [Gertruda Sekaninova-Cakrtova] with the
American Ambassador [U. Alexis Johnson] of the
same date with regard to the alleged intentional
intrusion of the Embassy's Air Attache into a re- ,
stricted area.

As the Ambassador informed Her Excellency
the Deputy Foreign Minister the Air Attache,
Colonel D. E. Teberg, in the company of the Brit-
ish Air Attache, were proceeding eastward for
Nymburk on the main public highway marked
for that town, in a personal automobile bearing
diplomatic license plates, when, at the outskirts of
Milovice, they were stopped by a military police-
man with traiSc control flags.

In compliance with the directions of that mili-
tary policeman. Colonel Teberg and the British
Air Attache detoured to the left. After proceed- 1
ing up the detour slightly less than one-half mile ■
they were intercepted and passage backwards and
forwards was blocked by Czechoslovak army ve-
liicles which appeared from both directions. The
automobile in which they were traveling was,
without explanation, surrounded by six armed
guards. Neither "restricted area" nor "no entry"
signs were observed on the detour, and civilian
licensed traffic was on the detour during the period

^ Not printed.

940

Department of Stale Bulletin

of their detention. Although Colonel Teberg and
the British Air Attache identified themselves as
diplomatic personnel the guards refused to permit
them to leave the area.

After approximately one hour, an older model
twin-engine jet aircraft was towed from a distance
of one-half to one mile to a position as close as
feasible to the automobile, and approximately one-
half hour later an additional aircraft of the same
type was moved to the same position. Slightly
later two tanks were run up to a point very close
to the other side of the automobile. A single
photographer, followed by three additional pho-
tographers, then appeared, and after the guards
and blocking trucks were moved back, extensively
photographed the automobile from all angles with
both still and motion picture cameras.

After this photography had been completed, an
air force major stated he was commander of the
air field which lies approximately one and one-
half to two miles northeast of the town of Milo-
vice. Lt. Colonel Komarek, the chief of the For-
eign Liaison Section of the Ministry of Defense,
and a representative of the Ministry of Foreign
Affairs appeared.

Colonel Teberg then inquired as to the meaning
of these activities, pointing out that they had been
directed down the road and that no posted re-
stricted areas had been noted. He also requested
at this point that if this in fact were a restricted
area, that the signs so stating be pointed out. Al-
though both Colonel Teberg and the British Air
Attache are well known to Lt. Colonel, Komarek
they willingly and readily complied with his re-
quest that they exhibit their diplomatic identifi-
cation cards.

The jihotographers continued taking photo-
graphs throughout this period.

The Czechoslovak representatives tlien de-
parted stating that it was necessary that they con-
sult higher authorities. They returned approxi-
mately 1.5 minutes later, and their request again
that Colonel Teberg and the British Air Attache
exhibit their identification cards was complied
with.

After Colonel Teberg and the British Air At-
tache assured the Czechoslovak representatives
that there were no cameras in their possession
the Czechoslovak representatives indicated that
the automobile be turned around and that they
would then show Colonel Teberg and the British
Air Attache the "no entry" sign.

Following the Czechoslovak representatives
(who were preceded by the four photographers)
the British Air Attache and Colonel Teberg then
drove back to a point approximately 750 feet
from the point where they had been directed to
turn by the military policeman. Resting in the
fork of a tree, a small, and partially defaced "no
entry" sign in the Czech language, somewhat ob-
scured by foliage, was shown to the occupants,
again with accompanying photography. This
sign had not been observed during the first
passage up the road approximately three hours
before.

Colonel Teberg and the British Air Attache
then departed and returned to Prague.

The American Embassy regrets this incident
which was occasioned entirely by the directions
given by a Czechoslovak military policeman and
by the inadequate marking of the road. The
American Embassy also regrets that the Czecho-
slovak authorities concerned ap]Darently at-
tempted to use the incident to obtain contrived
and misleading photographs of Colonel, Teberg.

The Embassy avails itself of this opportunity
to renew to the Ministry of Foreign Affairs the
assurance of its high consideration.

Congressional Documents
Relating to Foreign Policy

85th Congress, 1st Session

Interim Convention on Conservation of North Pacific Fur
Seals. Message from the President transmitting a
certified copy of an interim convention on conservation
of North Pacific fur seals, signed at Washington on
February 9, 1957, in behalf of the Governments of
Canada, Japan, the Union of Soviet Socialist Republics,
and the United States. S. Exec. J, March 29, 1957.
16 pp.

Amendment of Anglo-American Financial Agreement.
Report of the House Committee on Foreign Alfairs on
S. J. Res. 72, to implement further the act of July 15,
1946, by approving the signature by the Secretary of the
Treasury of an agreement amending the Anglo-American
Financial Agreement of December 6, 1945. H. Kept. 293,
April 2, 1957. 13 pp.

United States Membership in the Organization for Trade
Cooperation. Message from the President recommend-
ing United States membership in the Organization for
Trade Cooperation. H. Doc. 146, April 3, 1957. 3 pp.

Report of the Special Study Mission to Africa, South and
East of the Sahara, comprising Honorable Frances P.
Bolton, ranking minority member of the Subcommittee
on the Near East and Africa of the House Committee
on Foreign Affairs. H. Rept. 307, April 5, 1057. 151 pp.

Favoring Admission of Spain as a Member of the North
Atlantic Treaty Organization. Report to accompany H.
Con. Res. 115. S. Rept. 212, AprU 8, 1957. 2 pp.

June 70, 1957

941

Guiding Principles in United States Foreign Policy

hy Deputy Under Secretary Murphy '

When we review the earlier days of our Repub-
lic, we appreciate that through many decades the
making of our foreign policy was a fairly simple
process. Of course the basic aim of our foreign
policy has always been, as it is today, the welfare
and security of the American people. It is
designed to demonstrate to peoples abroad the
worth of American principles and institutions as
well as the hmnanity of our population.

Now in the early days of our Republic the Presi-
dent, the Secretary of State, and a few advisers be-
tween them had the knowledge, experience, and the
authority to make the necessary foreign-policy
decisions. We were then a new nation, largely
isolated from the rest of the world, and our
foreign policy was chiefly directed toward stay-
ing clear of foreign entanglements, concentrating
on our own development, and preventing inter-
ference with ourselves and our immediate neigh-
bors. And as for the State Department, over
which the Secretary of State presided, its original
personnel numbered 13. As we have grown in
power and authority in the world, after the ex-
perience of two terrible world wars and in the
presence of power politics generated by forces hos-
tile to our interests and ideals, there has been a
concomitant growth of central government au-
thority in the country to cope with this complex
situation.

Before coming here I asked my good friend,
Monsignor Tamper, for suggestions as to points of
interest in our foreign policy. He mentioned
criticism he had heard about our foreign policy to
the effect that some people seem to believe that

' Address made before the National Council of Catholic
Men at Cincinnati, Ohio, on May 11 (press release 283
dated May 10).

there is too much shooting from the hip and that
this impression had been created perhaps by sensa-
tional headline treatment of the news regarding
foreign policy. Perhaps it might be desirable to
take a few minutes to review the way in which
foreign policy is formulated in your Government.

Under our system of government and under our
Constitution, the President is charged with the
conduct of foreign affairs. His principal adviser
is the Secretary of State. Today we entertain
diplomatic relations with 82 nations. Of these
82 nations, 19 with 700 million people have come
into being during the past decade. This also pro-
vides a certain index of the increased volume of
diplomatic activity which your Government is
engaged in as compared with pre-World War II
days.

Basic to our democratic system is the support of
the people at large. All decisions of foreign policy
must finally meet the approval of the people. To
insure the widest popular understanding and sup-
port for our foreign policies, the President, the
Secretary of State, and other leading officials hold
frequent consultations with the Congress and
groups of private citizens. Press conferences are
perhaps the best way to bring current issues to
the direct attention of the people. I

The gravest questions of all in our foreign policy,
the broadest matters affecting war and peace, fall
under the consideration of the National Security
Council. This Council, strengthened and en-
larged under President Eisenhower, is charged
under law with coordination of political, military,
and industrial policies to advance the security of
the United States. It consists of tlie President.
Vice President, Secretary of State, Secretary of
Defense, and the Director of the Office of Defense
Mobilization, who are permanent statutory mcm-

942

Department of State Bulletin

bers. The Joint Chiefs of Staff are the principal
military advisers to the Council. The Central
Intelligence Agency is under the National Secu-
rity Council and is its intelligence adviser. High
officials of the other departments may be ap-
pointed to the Council from time to time as cir-
cumstances require.

I should like to review with you this evening
some of the guiding principles in our foreign re-
lations. These are the constants of our policies —
the basic purposes and essential requirements.
The specific courses of action we take are based on
these fundamental considerations. Secretary
Dulles recently reaffirmed these principles and
stressed that it is important for both friend and
foe to know how we chart our course.^

Finding Ways of Peaceful Ciiange

America's goal is to i-ealize the concepts of peace,
justice, and liberty in a world of rapid and ac-
celerating change. World peace depends not on
preserving the status quo but on finding ways of
peaceful change.

To insure that change takes place by peaceful
evolution and not by force we must be sure that
the nations of the free world have sufficient
strength to deter armed aggression. This can be
done most efficiently and economically, and is be-
ing done, through the unity of the free peoples
and their defensive armament. The collective se-
curity alliances of the free nations, reinforced by
our military strength and the mobile retaliatory
power of the United States, are key elements in
our effort to prevent aggression.

In addition to this defensive strength arising
from the system of collective security alliances and
our armed force, there must be healthy economic
growth if peace is to have sufficient vitality to en-
dure. This activity and growth comes best to the
more developed nations through trade, which is of
mutual advantage. To the less-developed nations,
this growth comes through programs of self-help,
and here the United States has been rendering
vital assistance. A second requirement of our
policies, therefore, is to help provide opportunity
for the economic development and growth of the
free nations.

However, man does not live by bread alone, and
economic development alone is not enough. In-

" Bri,i.KTiN of May 6, 1957, p. 715.
June 10, 1957

deed, development comes best and most rapidly
when there is another ingredient — freedom. A
third requirement is to encourage political change
in the direction of justice and liberty. From our
earliest days the United States has stood as the
faithful champion of these principles. We sup-
port the aspiration of any nation to be free.

In particular we support the peaceful libera-
tion of the nations now enslaved within the Soviet
bloc. Economic exploitation and political repres-
sion have made a mockery of the Communists'
claim of a better way of life. Communist doc-
trine, once supposed to have the answer to every
political, economic, or social question, has become
hopelessly confused over personality cults and
divergent roads to socialism.

Yugoslavia took its own road in 1948. With
judicious encouragement from the West, it has
kept on its own road. This division within the
Communist camp has had a significant and con-
tinuing impact on international communism.

Last year's revolt in Hungary was crushing
proof of the Soviets' failure to impose their sys-
tem on a people determined to be free. Hungary's
political and religious traditions are antithetical
to reactionary despotism. We have given all aid
we could to Hungary short of running direct risk
of war. We have not forgotten the brave people
of Hungary. We know that the tide of freedom
runs strong there, and we shall continue to en-
courage it. We doubt that Soviet brutality and
repression are capable of reversing the trend to-
ward freedom which has been established by Hun-
garian heroism.

Likewise in Poland we encourage a peaceful
evolution to freedom. In Poland, too, political
and religious traditions are antithetical to foreign-
imposed despotism. Here also we are willing to
respond helpfully when a captive nation takes
steps toward independence.

The road to true independence for the captive
nations may be a long one. But steps along this
road merit encouragement. At the same time the
President has made it clear to the Soviet rulers
that we do not seek to encircle the Soviet Union
with hostile forces. We do not look upon these
nations as potential military allies but rather as
friends and as part of a united and friendly
Europe.

In encouraging evolution toward freedom, we
recognize that the United Nations plays an ini-

943

portant role, a role no other agency can play.
The U.N. Charter calls for peaceful settlement
of disputes in accordance with justice and interna-
tional law. Settlement of the dangerous situation
in the Middle East on the basis of these principles
is a consummation we are earnestly seeking.

Under the aegis of the United Nations poten-
tially important discussions on the vital matter
of disarmament are now going on in London. We
believe that a defensive shield is essential, as I have
said, to permit peaceful and evolutionary change.
But we do not believe that ever-increasing arma-
ments are necessary to security. We believe that
control and reduction of armaments are not only
desirable but ultimately essential. It is not neces-
sary, furthermore, that control come all at once.
A journey of many miles begins with a single step.
We do not despair that progress toward safe-
guarded disarmament may be made in the current
conversations in London.

Mutual Security Program

The mutual security program remains one of our
essential instruments of foreign policy. Through
it we give military assistance to those countries
willing to stand with us in maintaining a defensive
shield against aggression. Through it we give
assistance to those who are facing such serious
economic problems that, without some assistance,
they might lose the liberty and independence they
cherish. A product of the mutual security pro-
gram has been the development of strength and
unity and firmness of purpose among tlie free
nations. This strength and unity have forced the
Communists to refrain from using overt aggres-
sion. If this strength and unity is maintained
with equal firmness of purpose in the future, it
offers promise of continuous development toward
a peaceful world.

In recent months the mutual security program
has been subjected to intensive reexamination.
Many excellent studies have been made by both
governmental and private gi'oups. Among the
general conclusions that emerge from these studies
are: first, that this is a long-term program and
ought to be put on a more businesslike long-term
basis, and second, that the program must be so
presented as to be more widely understood by the
American people. It has been my experience that
our people are not opposed to having their Gov-
ermnent take necessary action. What they %Yish

to know is that the action is carried out efficiently
and economically.

Henceforth the military portions of the pro-
gram, constituting about three-fourths of the
whole, will be placed in the budget of the Depart-
ment of Defense, where they can be seen for what
they really are — an essential part of our own mili-
tary shield against aggression.

As for our economic development assistance,
this part of the program is being put on a more
realistic basis for continuing operations. The
Congress will be asked to set up an economic de-
velopment fund with continuing authority — that
is, it would not exist merely on a year-to-year
basis, as though every year might be the last.
This does not allow for efficient and practical
planning. Long-term loans would be made for
specific programs or projects which developing
countries must have for their advancement but
which they cannot at present finance from private
sources or existing institutions such as the World
Bank.

In addition to this new fund, we will of course
continue the highly successful program of tech-
nical assistance. We will continue to participate
in the technical assistance activities of the United
Nations. And since there will remain an urgent
need — in some countries and under unusual cir-
cumstances— for outright economic grants rather
than loans, limited funds for that purpose will
continue to be required.

All in all, we believe that the new approach
will make the mutual security program a more
effective instrument for furthering the vital in-
terests of the United States in the most dangerous
era of our national history thus far. We cannot
afford to be without this instrument. But we can
certainly improve it. That is what we aim to do.

We naturally hope for the day when our mili-
tary and economic assistance can come to an end.
It would be foolhardy, however, to expect that
that day can come immediately. The forces of
hostility and instability loom too large for wish-
ful thinking. This is not to say that we will not
work toward the objective of reducing aid. Im-
portant progress has already been made in this di-
rection, notably in Western Europe, where we
have closed down much of our aid operations.
Our aid office in Italy, among other places, was
recently closed. The fact that Italy today has
one of the soundest, most productive economics in

944

Department of State Bulletin

Europe is eloquent proof of the value of economic
assistance properly administered and properly
used by the recipient country.

Rebuilding of South Viet-Nam

It is of sifrnificance to all Americans, and par-
ticularly to the National Council of Catholic Men,
that Ngo Dinh Diem, President of the Republic of
Viet-Nam, is now paying a state visit to our coun-
try.^ President Ngo was born of a central Viet-
Nam family which was converted to Catholicism
in the 17th century, a family which for many gen-
erations has produced noted ecclesiastics and
administrators.

The remarkable rise of Viet-Nam from the
apparently hopeless chaos caused by 8 years of
bloody civil and international war and the con-
tinuing menace of predatory communism is due in
large measure to the dedication, courage, and re-
sourcefulness of this one man and to the support
of his determined people. Our actions — political,
economic, and military — have played an impor-
tant supporting role.

To assist in the rebuilding of South Viet-Nam
after the cease-fire arranged at Geneva in July
1954:, large-scale aid was necessary. The United
States was the only major source available. We
recognized clearly that here was an important in-
terest of the free world. About $300 million of
United States aid funds were obligated by our
International Cooperation Administration for
Viet-Nam during her first year of independence.
By the middle of this year approximately $763
million will have been programed for South Viet-
Nam since June 195-4.

Wliat has been the result of these massive efforts
to help South Viet-Nam?

In just 2 years the threat of a Communist take-
over, or a coup by rebel forces, both of which
appeared highly dangerous in 1955, has been
averted. Free Viet-Nam now has a strongly anti-
Communist government, based on broad popular
support. Substantial progress has been made in
meeting the social, economic, governmental, and
agricultural problems of the nation. The national
army, trained, equipped, and financed with United
States aid, has pacified the country, destroyed the
sects, and greatly reduced the subversive potential
of the Communists. Viet-Nam now has a consti-

tution similar in many respects to our own. A
central bank and other institutions necessary for
an effective free government have been established.
Inflationary pressures have been held down.

Catholic Relief Services played a valuable role
in the heroic evacuation of 860,000 refugees from
North Viet-Nam. These people were resettled in
over 300 new villages carved out of the forests and
wildernesses of Viet-Nam.

Through the instrumentality of Catholic Relief
Services in Viet-Nam the American people have
poured out almost $30 million worth of material
supplies that, it is generally recognized, were in
good part responsible for keeping these people
alive in the first years following their exodus.
Because of your help ancient villages of the Com-
munist-held North have been recreated in the
South. Sixty thousand Catholic school children
are attending their Catholic village primary
schools. Streets have been laid out, wells have
been dug, medical sei-vices have been supplied to
these people, through the device of 78 coopera-
tives. Wage earners have been put back to work,
jungle lands have been turned into productive
agricultural areas, fishermen have been provided
with boats and nets, fundamental vocational train-
ing in the basic village arts has been established,
the seminaries of 10 northern dioceses have been
reconstituted, over a thousand refugee nuns from
dozens of communities have taken up their work
again in behalf of their fellowmen. Fifteen sec-
ondary schools are bringing the fruits of higher
education to the children of these unfortunate
people and three leper asylums are working in
behalf of the most afllicted among them.

These accomplishments are, in one word, the
corporal works of mercy. The beneficiaries of
your charity are people in need, without refer-
ence to any other consideration. In an area where
human concern is determined by a relationship
of blood, millions of non-Catholics have either
benefited by your charity or witnessed your minis-
trations to their fellow citizens. They have been
edified by this. Thousands of them have come to
know about the bonds of Christian love that can
unite the members of the human family. I am
proud to say that the high spirit of dedication that
led these people to abandon all that was most dear
to them for the preservation of their faith has been
matched by the response of the American people

= Ibid., May 27, 1957, p. 851.
June 70, 1957

in their hour of greatest need.

945

Our political, economic, and military actions in
Viet-Nam and Southeast Asia have helped stop the
advance of the forces of international communism
in Asia. Halfway around the world in Germany,
another stanch defender of the free world, Chan-
cellor Konrad Adenauer, declared at the recent
Nato Ministerial Meeting in Bonn that the united
strength and resolution of the free nations are the
only means by which we can resist the further en-
croachments of the Communists. Chancellor
Adenauer, like President Ngo Dinh Diem, a de-
vout Catholic and leader of a divided nation, will
be making an official visit to Washington at the
end of this month.

U.S. Objectives

In the world today our basic interests are clear.
Many of them are expressed in our mutual secu-
rity program and have been reflected by our
actions in many vital world areas. Our objectives
can be summed up somewhat as follows :

The onward march of Communist armies seems
to have been arrested. It must not be revived.
Further subversion of friendly countries must be
prevented.

We value our allies and want them strong, not
weak.

The economies of our allies and friends must not
be permitted to degenerate into a chaos of gallop-
ing inflation caused by a defense effort beyond
their economic capacity.

We plan to help the newly emerging nations
develop in ways compatible with our own demo-
cratic system of free enterprise.

We are working to improve the balance of re-
sources in favor of the free world.

The example of the United States and the
principles for which our Nation stands should pro-
vide inspiration and encouragement for friendly
peoples everywhere.

Mr. Dillon To Be U.S. Alternate
Governor of International Bank

The Senate on May 20 confirmed C. Douglas
Dillon to be United States Alternate Governor of
the International Monetary Fund and the Inter-
national Bank for Reconstruction and Develop-
ment for the term of 5 years.

Extending Tariff Concessions
Under Article XXViil of Gatt

Press release 308 dated May 22

The next regular business session of the con-
tracting parties to the General Agreement on
Tariffs and Trade (Gatt) in October is scheduled
to consider the question of extending for an ad-
ditional time after January 1, 1958, the period
during which the tariff concessions contained in
the agreement would not be modified or with-
drawn under procedures of article XXVIII of the
agreement except under special circumstances.

This is a question which is considered periodi-
cally, and agreement to such an extension would
not prevent the United States from exercising its
right to modify or withdraw tariff concessions for
cause as it has in the past. The escape-clause pro-
visions of article XIX of the agreement are not in-
volved, nor would the action to be considered limit
the use of procedures of article XXVIII in special
circumstances.

With a view to preparing the United States po-
sition, the Interdepartmental Committee on Trade
Agreements on May 22 invited public views on
any aspect of such an arrangement.

In 1955, at the 9th session of the contracting
parties to Gatt, the signatory' countries drafted
an amended form of article XXVTII which pro-
vides for automatic extensions for successive
3-year periods of the undertaking not to use pro-
cedures of article XXVIII to withdraw or mod-
ify tariff concessions except in special circum-
stances.^ Inasmuch as the amended article
XXVIII would not take effect until two-thirds
of the contracting parties had signed the perti- j
nent amending protocol, the contracting parties
in 1955 prepared a Declaration on the Continued
Application of Schedules. In that declaration
the signatories agreed not to invoke vis-a-vis each
other, except in special cases, the provisions of the
existing article XXVIII which provide a pro-
cedure for the modification or withdrawal of tar-
iff concessions. The period covered b}' tliat 1955
declaration ends on December 31, 1957.

It is probable that the amended form of article
XXVIII will still not be in effect by tliat date.
The contracting parties, tliereforc, are expected to

' For a summary of the 9th session, see Bulletin of
aiur. 21, 1955, p. 495.

946

Deparfment of Stofe Bulletin

consider this October the desirability of making
another supplementary arrangement under which
they would, for ii further specified period and ex-
cept in special circumstances, refrain from modify-
ing or withdrawing tariff concessions under the
procedures of the present article XXVIII.

In conjunction with earlier such arrangements,
the signatories had the ojiportunily of with-
drawing or modifying individual concessions
which they desired to withdraw before becoming
a party to a new arrangement and of conducting
among themselves whatever negotiations were
necessary to furnish compensatory tariff conces-
sions to take the place of the concessions with-
drawn or modified. The United States has never
made such modifications of its tariff concessions a
condition of its agreeing to renew the assured
validity of the schedules of tariff concessions in
the general agreement, although on a few occasions
certain United States concessions have been modi-
fied, during the period covered by a renewal, under
the provisions for action in special circumstances.
Beyond this, however, the United States has nor-
mally relied on the procedures provided in article
XIX of the agreement, otherwise known as the
escape clause, for such modifications or with-
drawals as have been found necessary.

Agencies represented on the Interdepartmental
Committee on Trade Agreements would appreci-
ate receiving views from interested persons with
regard to an arrangement for a new period in
which article XXVIII would be invoked only in
special circumstances. The interested agencies
have invited views with regard to any aspect of
the arrangement, including possible changes in in-
dividual concessions which the United States has
obtained or granted, so that such views may be
given careful consideration in comiection with the
formulation of recommendations to the President
concerning the position which the United States
should take in the matter.

To afford interested persons an opportunity to
present any pertinent views, the Conunittee for
Reciprocity Information, which has the same
membership as the Committee on Trade Agree-
ments, will hold public hearings commencing on
June 18, 195", in the hearing room. Tariff Com-
mission Building, Washington, D.C.

Applications for oral presentation of views and
information should be presented to the committee
not later than June 11, 1957.

Written statements should be filed by June 18,
1957.

Further details concerning the submission of
applications to be heard are contained in the at-
tached notice of the Committee for Reciprocity
Information.

All communications on this matter should be
addressed to : The Secretary, Committee for Reci-
procity Information, Tariff Commission Building,
Washington 25, D.C.

INTERDEPARTMENTAL COMMITTEE ON TRADE
AGREEMENTS

Consideration of New Period During Which Article

XXVIII of General Agreement on Tariffs and Trade

Will Not Be Invoked

Pursuant to Section 4 of the Trade Agreements Act,
approved June 12, 1934, as amended (48 Stat. (pt. 1) 945,
ch. 474 ; 65 Stat. 73, ch. 141) and to paragraph 4 of Execu-
tive Order 100S2 of October 5, 1949 (3 CFR, 1949 Supp.,
p. 126), notice is hereby given by the Interdepartmental
Committee on Trade Agreements of intention to consider
agreein;,' upon a further period during which the proce-
dures under Article XXVIII of the General Agreement
on Tariffs and Trade will not normally be invoked. In
particular, pending the entry into force of the amended
Article XXVIII of the General Agreement set forth in
the Protocol Amending the Preamble and Parts II and
III of the General Agreement, of March 10, 1955 (H. Kept.
2007. 84th Cong., 2d Sess. 191), consideration is being
given to the conclusion of a supplementary agreement
limiting the withdrawal or modification of concessions
under Article XXVIII for a further period beginning on
January 2, 1958.

Article XXVIII of the General Agreement (61 Stat,
(pt. 5) A71; 3 U.S.T. (pt. 1) 018), which is one of the
most important provisions of that agreement in relation
to the firmness of concessions, permits a contracting party
to the Agreement to modify or withdraw concessions on
an individual basis on or after a specified date following
consultation and negotiation with other contracting
parties. This article was included in the agreement to
enable a contracting party confronted with a necessity
for modifying or withdrawing a particular tariff con-
cession to do so without the necessity of withdrawing
completely from the agreement. The article envisages
that the balance between the concessions granted by the
various contracting parties shall be maintained, prefer-
ably through the negotiation of new concessions as com-
pensation for any modifications or withdrawals made,
but through retaliatory modifications or withdrawals by
other parties if agreement cannot be reached on new
concessions.

Although Article XXVIII itself now provides that re-
negotiations under it may take place on or after January
1, 1954, contracting parties to the General Agreement
have on a number of occasions undertaken by supple-

Jone 10, J 957

947

mentary agreements not to Invoke the normal proce-
dures of Article XXVIII except after a specified date.
Similar provision is made in the amended Article
XXVIII, which is not yet in force, for normal invocation
of the article only periodically. Pursuant to the Decla-
ration of the Continued Application of Schedules to the
General Agreement, of March 10, 1955 (6 U. S. T. (pt.
5) 5815), which is the current supplemental agreement
limiting the use of Article XXVIII, normal action under
the article may not be taljen before January 1, 1958.

No modification of Article XXVIII would affect the
right of any contracting party to withdraw or modify
individual concessions pursuant to Article XIX (com-
monly called "the escape clause") of the General Agree-
ment.

Pursuant to Section 4 of the Trade Agreements Act, as
amended, and paragraph 5 of Executive Order 10082, in-
formation and views may be submitted to the Commit-
tee for Reciprocity Information, in accordance with the
announcement of this date issued by that Committee,
as to any aspect of the proposal announced in this no-
tice, including possible changes in individual conces-
sions obtained or granted by the United States which
might be negotiated prior to the effectiveness of any
new supplementary agreement not to involve Article
XXVIII for a further specified period.

By direction of the Interdepartmental Committee on
Trade Agreements this 22nd day of May 1957.

Gael D. Coese

Chairman

Interdepartmental Committee

on Trade Agreements

COMMITTEE FOR RECIPROCITY INFORMATION

Consideration of New Period During Which Article
XXVIII of General Agreement on Tariffs and Trade
Will Not Be Invoked

Submission of information to the Committee

Closing date for applications to appear at hearings June
11, 1957

Closing date for submission of briefs June 18, 1957

Public hearings open June 18, 1957

The Interdepartmental Committee on Trade Agree-
ments has issued on this day a notice of intention to
consider agreeing upon a further period during which
the procedures under Article XXVIII of the General
Agreement on Tariffs and Trade will not normally be in-
voked. This Article permits a contracting party to the
Agreement to modify or withdraw concessions on an in-
dividual basis on or after a specified date following
consultation and negotiation with other contracting
parties.

The Committee for Reciprocity Information hereby
gives notice that it will receive views as to any aspect
of the foregoing proposal, including possible changes in
Individual concessions obtained or granted by the United
States which might be negotiated prior to the effective-
ness of any new supplementary agreement not to invoke

Article XXVIII for a further specified period. Such no-
tice specifies that no action taken pursuant thereto would
affect the right of any contracting party to withdraw
or modify individual concessions pursuant to Article XIX
(commonly called "the escape clause") of the General
Agreement.

All applications for oral presentation of views to the
Committee for Reciprocity Information in regard to the
foregoing proposal shall be submitted to the Committee
for Reciprocity Information not later than June 11, 1957.
Such applications shall contain an estimate of the time
desired for oral presentation and, to the extent practica-
ble, shall indicate the nature of the testimony. Written
statements shall be submitted not later than June 18,
1957. Such communications shall be addressed to "Com-
mittee for Reciprocity Information, Tariff Commission
Building, Washington 25, D. C." Fifteen copies of writ-
ten statements, either typed, printed, or duplicated, shall
be submitted, of which one copy shall be sworn to. Writ-
ten statements submitted to the Committee, except in-
formation and business data proffered in confidence, shall
be open to inspection by interested persons. Information
and business data proffered in confidence shall be submit-
ted on separate pages clearly marked "For OflJcial Use
Only of Committee for Reciprocity Information."

Public hearings will be held before the Committee for
Reciprocity Information, at which oral statements will
be heard, beginning at 10:00 a. m. on June 18, 1957 in
the hearing room in the Tariff Commission Building,
Eighth and E Streets N.W., Washington, D. C. Witnesses
who make application to be heard will be advised regard-
ing the time and place of their individual appearances.
Appearances at hearings before the Committee may he
made only by or on behalf of those persons who have
filed written statements and who have within the time
prescribed made written application for oral presentation
of views. Statements made at the public hearings shall
be under oath.

By direction of the Committee for Reciprocity Infor-
mation this 22nd day of May 1957.

Edwabd Yabdlet
Secretary
Committee for Reciprocity Information

U.S. Delegations to
International Conferences

Caribbean Commission

Tlie Department of State announced on May 21
(press release 303) that the U.S. Government will
be represented by the following delegation at the
24th meeting of the Caribbean Commission to be
held at St. Thomas, Virgin Islands, May 22-25,
1957:

XJ.8. Commissioners

Roderic L. O'Connor, chairman of delcfiation and corhair-

man of Commission, Deputy Assistant Secretary of

State for Congressional Relations

948

Department of State Bulletin

Leonard Brewer, St. Thomas, Virgin Islands

Arturo Morales Carrion, Under Secretary of State for the

Commonwealth of Puerto Rico
Jos6 Trias Monge, Secretary of Justice for the Common-
wealth of Puerto Rico

Advisers

Jos6 Luis Colom, Director, Caribbean Area Program, De-
partment of State, Commonwealth of Puerto Rico

Anthony T. Lausi, Director, Office of Territories, Depart-
ment of the Interior

Frances McReynolds Smith, Office of Dependent Area Af-
fairs, Department of State

Cabot Sedgwick, Office of British Commonwealth and
Northern European Affairs, Department of State

An outgrowth of the original Anglo-American
Caribbean Commission, the Commission is an in-
ternational advisory body. It serves to coordi-
nate activities of the four member governments —
France, the Netherlands, the United Kingdom,
and the United States — in their efforts to im-
prove the economic and social well-being of the
inliabitants of their territories in the Caribbean
area.

The principal items for discussion concern the
work program, technical conferences, and tech-
nical assistance projects in housing, agriculture,
home economics, fisheries, and education.

TREATY INFORMATION

Current Actions

MULTILATERAL

International Court of Justice

Statute of the International Court of Justice (59 Stat.

1055).

Notice of withdrawal of October 31, 1955, declaration
recognizing compulsory jurisdiction : United Kingdom,
April 12, 1957.

Declaration recognizing compulsory jurisdiction depos-
ited (loith conditions and reservations) : United King-
dom, April 18, 1957.' Effective until notice of termi-
nation is given.

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

York June 23, 1953.'

Ratification deposited: Chile, May 9, 1957.

Postal Services

Universal postal convention, with final protocol, annex,
regulations of execution, provisions regarding airmail,
and final protocol thereto. Signed at Brussels July 11,
1952. Entered into force July 1, 1953. TIAS 2800.
Ratification deposited: Peru, April 25, 1957.

Safety at Sea

Regulations for preventing collisions at sea. Done at
London June 10, 1948. Entered into force J'anuary 1,
1954. TIAS 2899.
Acceptance deposited: Cuba, February 22, 1957.

War

Geneva convention relative to treatment of prisoners of
war ;

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

Geneva convention for amelioration of 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; for the United States February 2,
1956. TIAS 3364, 3362, 3363, and 3365, respectively.
Adherence deposited: Haiti, April 11, 1957.

Whaling

Protocol amending the international whaling convention
of 1946 (TIAS 1849). Done in Washington November
19, 1956.'
Ratification deposited: United Kingdom, May 23, 1957.

BILATERAL
Austria

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act
of 19,54, as amended (68 Stat. 454, 455; 69 Stat. 44,
721), and related note. Signed at Vienna May 10,
1957. Entered into force May 10, 1957.

Agreement relating to a grant of agricultural commodi-
ties to Austria for Hungarian relief under title II of
the Agricultural Trade Development and Assistance
Act of 1954, as amended (68 Stat. 454, 457; 7 U. S. C.
1721-1724). Effected by exchange of notes at Vienna
May 10, 1957. Entered into force May 10, 1957.

Belgium

Agreement amending annex B of the Mutual Defense
Assistance Agreement of January 27, 19.50 (TIAS
2010). Effected by exchange of notes at Brussels
April 15 and May 9, 1957. Entered into force May 9.
19.57.

China

Agreement amending the agreement of June 25, 1952
(TIAS 26.57) relating to guaranties for projects in Tai-
wan proposed by nationals of the United States, and
providing war risk guaranties under section 413 (b)
(4) of the Mutual Security Act of 1954, as amended
(68 Stat. 832, 847; 22 U.S.C. 1933). Effected by ex-
change of notes at Taipei May 3, 1957. Entered into
force May 3, 1957

Ecuador

Agreement for the establishment and operation of a raw-
insonde observation station at Guayaquil, Ecuador. Ef-

' Applicable to all disputes arising after Feb. 5, 1930.

" Not in force.

June 70, 7957

949

fected by exchange of notes at Quito April 24, 1957.
Entered into force: May 14, 1957 (date of signature of
arrangement embodying the technical details).

Finland

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 454, 455; 69 Stat. 44, 721),
and exchange of notes. Signed at Helsinki May 10,
1957. Entered into force May 10, 1957.

Peru

Agreement for the establishment and operation of a raw-
insonde observation station at Lima, Peru. Effected
by exchange of notes at Lima April 17, 1957.
Entered into force: May 17, 1957 (date of signature
of arrangement embodying the technical details).

PUBLICATIONS

DEPARTMENT AND FOREIGN SERVICE

Confirmations

The Senate on Jlay 20 confirmed the following:

Don C. Bliss to be Ambassador to Ethiopia. (For bio-
graphic details, see press release 251 dated April 29.)

Joseph S. Farland to be Ambassador to the Dominican
Republic. (For biographic details, see press release 257
dated May 1.)

Wilson C. Flake to be Ambassador to Ghana. (For bio-
graphic details, see press release 261 dated May 2. )

Robert C. Hill to be Ambassador to Mexico. (For bio-
graphic details, see press release 227 dated April 19.)

Walter P. McConaughy to be Ambassador to Burma.
(For biographic details, see press release 253 dated
April 29.)

Miss Frances E. Willis to be Ambassador to Norway.
(For biographic details, see press release 198 dated
April 9.)

Designations

J. Gordon Mein as Director, Oflice of Southwest Pacific
Affairs, effective May 20.

Roderic L. O'Connor as Administrator, Bureau of Se-
curity and Consular Affairs, effective May 28. (For bio-
graphic details, see press release 200 dated April 9.)

Opening of Consulate at Beio Horizonte

A new consulate at Belo Horizonte, Brazil, was opened
oflicially on April 4 and opened to tlie public on May 13.
The administrative supervisory post is Rio de Janeiro.
The consular district of Belo Horizonte comprises the
entire State of Minas Gerais, Brazil.

Recent Releases

For sale by the Superintendent of Documents, U. S. Gov-
ernment Printing Office, Washington 25, D. C. Address
requests direct to the Superintendent of Documents, ex-
cept in the case of free publications, which m<m be
obtained from the Department of State.

Double Taxation— Taxes on Income. TIAS 3766. 33 pp.
15#.

Convention between the United States of America and
Honduras — Signed at Washington June 25, 1956, and
exchange of notes — Signed at Tegucigalpa February 6,
1957. Entered into force February 6, 1957 ; operative
retroactively January 1, 1957.

Saint Lawrence Seaway — Navigation Improvements of
the Great Lakes Connecting Channels. TIAS 3772.

5 pp. 5^.

Arrangement between the United States of America and
Canada. Exchange of notes — Dated at Ottawa July 23
and October 26, 19.^6, and February 26, 1957. Entered
into force October 26, 1956.

Exemption of Merchant Vessels From Admeasurement
Requirements. TIAS 3774. 3 pp. 5^.

Agreement between the United States of Ameiica and
Venezuela. Exchange of notes — Signed at Caracas Feb-
ruary 21, 1957. Entered into force February 21, 1957.

Atomic Energy — Cooperation for Civil Uses. TIAS 3775.
3 pp. 5^.

Agreement between the United States of America and
Sweden, amending agreement of January IS, 19.j6 —
Signed at Washington August 3, 1956. Entered into
force March 12, 1957.

Air Transport Services. TIAS 3776. 22 pp. 15(f.

Provisional arrangement between the United States of
America and Mexico. Exchange of notes — Dated at
Mexico March 7, 1957. Enters into force June 5, 1957.

Surplus Agricultural Commodities. TIAS 3777. 7 pp.
10(f.

Agreement between the United States of America and
Thailand— Signed at Bangkok March 4, 1957, with ex-
change of notes. Entered into force March 4, 1957.

Surplus Agricultural Commodities. TIAS 3778. 2 pp.

Agreement between the LTnited States of America and
Greece, amending agreement of August 8, 1956. Ex-
change of notes — Signed at Athens February 13 and 23,
1957. Entered into force February 23, 1957.

Surplus Agricultural Commodities. TIAS 3779. 3 pp.

Agreement lietween the United States of .\nierica and
Greece, amending agreement of .\ugust 8, 1056, as sup-
plemented. Excliange of notes — Signed at Atliens March
1 and 4, 1957. Entered into force March 4, 19.57.

950

Department of State Bulletin

June 10, 1957

Ind

ex

Vol. XXXVI, No. 937

American Principles. Guiding Principles in United

States Foreign Policy (Murpliy) 942

Brazil. Opening of Consulate at Belo Horizonte . 950
Burma. McConaughy confirmed as ambassador . 950

Cong^ress, The

Action Highlights of the Mutual Security Program,
July 1-December31, 1956 (excerpts from Eleventh
Semiannual Report) 931

Congressional Documents Relating to Foreign
Policy 941

Mutual Security Program for 1958 Presented to

Congress (Eisenhower, Dulles) 920

Czechoslovakia. Alleged Intrusion of Air Attach^

Into Czech Restricted Area (text of note) . . 940

Department and Foreign Service
Confirmations (Bliss, Farland, Flake, Hill, McCon-
aughy, Willis) 950

Designations (Mein, O'Connor) 950

Opening of Consulate at Belo Horizonte .... 950
Dominican Republic. Farland confirmed as ambas-
sador 950

Economic Affairs

Mr. Dillon To Be U.S. Alternate Governor of In-
ternational Bank 946

Extending Tariff Concessions Under Article XXVIH

of GATT 946

Ethiopia. Bliss confirmed as ambassador . . . 950

Ghana. Flake confirmed as ambassador .... 950

International Organizations and Conferences. Car-
ibbean Commission (delegation) 948

Mexico. Hill confirmed as ambassador 950

Mutual Security

Action Highlights of the Mutual Security Program,
July 1-December 31, 1956 (excerpts from Elev-
enth Semiannual Report) 931

Guiding Principles in United States Foreign Policy

(Murphy) 942

Mutual Security Program for 19.5S Presented to

Congress (Eisenhower, Dulles) 920

The Need for Mutual Security in Waging the Peace

(Eisenhower) 915

U.S. To Modify Restrictions on Military Aid to
Yugoslavia 939

Norway. Miss Willis confirmed as ambassador . . 950

Presidential Documents

Mutual Security Program for 1958 Presented to
Congress 920

The Need for Mutual Security in Waging the

Peace 915

Publications. Recent Releases 950

Treaty Information. Current Actions 949

United Nations. Mr. Dillon To Be U.S. Alternate

Governor of International Bank 946

Viet-Nam. Guiding Principles in United States

Foreign Policy (Murphy) 942

Yugoslavia. U.S. To Modify Restrictioms on Mili-
tary Aid to Yugoslavia 939

Name Index

Bliss, Don C 950

Dillon, C. Douglas 946

Dulles, Secretary 926

Eisenhower, President 915,920

Farland, Joseph S 950

Flake, Wilson C 950

Hill, Robert C 950

McConaughy, Walter P 950

Mein, J. Gordon 950

Murphy, Robert 942

O'Connor, Roderic L 950

Willis, Frances E 950

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

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

Press releases issued prior to May 20 which
appear in this issue of the Bulletin are Nos. 265
of May 6, 283 of May 10, and 289 of May 14.

Sabject

Visit of President Coty.

Delegation to Caribbean Commission
(rewrite).

Hill: "The Department of State and
the U. S. Merchant Marine."

U.S.-Canadian discussions on bound-
ary waters.

Herter : statement on payment to
Denmark.

Statement on Israel communique.

GATT session to discuss extension of
concessions under article xxviii.

Kalijarvi : "The Paradox of Foreign
Economic Policy."

Dulles' statement on mutual security.

Eleanor Dulles : "The Significance of
Berlin in the Study of Soviet
Policy."

Educational exchange.

B-29 incident of Nov. 7, 1954.

Revised program for Adenauer visit
(rewrite).

Germans attending meeting of Benja-
min Franklin Foundation.

*Not printed.

tHeld for a later issue of the Bulletin.

No.

Date

*302
303

5/20

5/21

t304

5/21

•305

5/21

t306

5/21

1307
308

5/21

5/22

t309

5/22

310
t311

5/22
5/22

♦312
t313
*314

.5/22
5/23
5/24

*315

5/24

U. S. GOVERNMENT PRINTING OFFICE: 19S7

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OFFICIAL BUSINESS

The Seal of the United States

With the signing of the Declaration of Indej^endence, a new nation
was born, but its ability to maintain its independence had yet to be
proved, and it needed a visible and tangible symbol of sovereignty.
So, on that same memorable July 4, 1776, the Founding Fathers
adopted the resolution, "That Dr. Franklin, Mr. J. Adams and Mr.
Jefferson, be a committee, to bring in a device for a seal for the United
States of America."

However, it took 6 years and two committees, with the new Nation's
right to independence established on the battlefields of a long and
bloody war, before a "device" for the emblem of sovereignty won the
approval of the Congress.

The seal, as the symbol of sovereignty, is impressed upon certain
official documents of state, thus authenticating at home and abroad
various official acts of our Government. Many Americans have never
seen or held in their hands a document bearing the impress of the
seal of the United States, but none of us is ever far from its design in
one or another of its official uses as decoration.

The Seal of the United States, a new publication, describes the his-
tory, design, and use of the great seal. The 14-page pamplilet is
illustrated and contains a full-color reproduction of the seal, approxi-
mately five inches in diameter, suitable for framing.

Copies of this publication may be purchased from the Superintend-
ent of Documents, U.S. Government Printing Office, Washnigton 25,
D.C, for 30 cents each.

Publication 6455

30 cents

Please send me ... copies of The Seal of the United States.

Name:

Street Address:

City, Zone, and State:

THE DEPARTMENT OF STATE

11^3 I »3S

P

% I

\

Vol. XXXVI, No. 938

June 17, 1957

VISIT OF CHANCELLOR ADENAUER OF THE FED-

ERAL REPUBLIC OF GERMANY • Texts of com-
munique and Joint Declaration, Addresses by Dr. Adenauer
Before the Congress, and Statement by Acting Secretary
^^•^""^ 955

SECRETARY DULLES' NEWS CONFERENCE OF

I^IAY 29 961

THE AMERICAN DOCTRINE AND THE MUTUAL SE-
CURITY PROGRAM • Statement by Ambassador
James P. Richards ggo

THE MIDDLE EAST— FUNDAMENTALS OF AMERI-
CAN POLICY • by Assistant Secretary Rountree 973

BERLIN AND SOVIET METHODS IN GERMANY • by

Eleanor Lansing Dulles 970

For index see inside back cover

THE DEPARTMENT OF STATE

Vol. XXXVI. No. 938 • Publication 6504
June 17, 1957

For sale by the Superintendent of Documents

U.S. Qovernment Printing Office

Washington 25, D.C.

price:

62 Issues, domestic $7.50, foreign $10.25

Single copy, 20 cents

The printing of this publication has been
approved by the Director of the Bureau of
the Budget (January 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 weekly publication issued by th«
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
relations and on the work of the
Department of State and the Foreign
Service. The BULLETIN includes se-
lected press releases on foreign policy,
issued by the White House and the
Department, and statements and ad-
dresses made by the President and by
the Secretary of State and other
officers of the Department, as tcell as
special articles on various phases of
internatioruil affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.

Publications of tlie Department,
United Nations documents, and legis-
lative material in the field of inter-
national relations are listed currently.

Visit of Chancellor Adenauer of the Federal Republic of Germany

Konrad Adenauer, Chancellor of the Federal
Republic of Germany, made an official visit to
Washington from May £4 to 29. Following are
the texts of a cominunique and joint declaration
issued hy the Chancellor and President Eisen-
hoioer at the conclusion of their talks, addresses
made by Dr. Adenauer before the Congress, and
a statement made by Acting Secretary Herter at
the time of the Chancellor^ departure, together
with an aimouncement of the members of the offi-
cial party.

COMMUNIQUE AND JOINT DECLARATION

White House press release dated May 28

Communique

Mat 28, 1957.

The President of the United States and the
Chancellor of the Federal Republic of Germany
concluded today the cordial discussions they have
! conducted during the last several days, with the
assistance of the Secretary of State and the Ger-
man Foreign Minister, and other advisers.

These discussions permitted a comprehensive
exchange of views concerning German-United
States relations, the European situation, and the
world situation. They have served to strengthen
still further the close understanding and har-
mony of views already existing between the two
governments.

As a result of their talks, the President and the
Chancellor have issued a Joint Declaration re-
garding matters of mutual interest.

Joint Declaration

I.

The President and the Chancellor agreed that
the basic aim of the policies of their two countries

lune 17, 1957

is the maintenance of peace in freedom. To that
end it is the common policy of their governments
to work for the achievement of conditions in
which all nations can live in peace and freedom
and devote their energies and resources to pro-
moting the welfare of their peoples.

They agreed that the realization of these con-
ditions depends upon the removal of the causes
of tension existing between the Soviet Union and
the Free World. This tension is mainly attribut-
able to the acts and policies of the Soviet Union,
among them the deprivation of other peoples of
their freedom.

The President and the Chancellor noted with
great concern the consequences of the brutal Soviet
intervention in Hungary. The continued sup-
pression of the rights of the Hungarian people
makes it difficult for other nations to accept as
genuine the professed Soviet desires for peaceful
coexistence.

The President and the Chancellor reaffirmed
that the ending of the unnatural and unjust di-
vision of Germany is a major objective of the
foreign policies of the two governments. Ger-
many must be reunited on a free and democratic
basis by peaceful means. If the Soviet rulers
really desire peace and the relaxation of inter-
national tension, they can give no better proof
than to permit the reunification of Germany
through free elections.

The President and the Chancellor emphasized
that the restoration of German national unity
need give rise to no apprehension on the part of
the Soviet Union as to its own security. It is not
the purpose of their governments to gain any one-
sided military advantage from tlie reunification of
Germany. In conjunction with such reunifica-
tion, they stand ready, as stated at the two Geneva
conferences of 1955, to enter into European
security arrangements which would provide
far-reaching assurances to the Soviet Union.

955

II.

The President and the Chancellor agreed that
Nato is essential for the protection of the security
of the entire free world. They agreed that the
defensive strength of Nato must be further im-
proved in the face of the continuing Soviet threat
and the absence of a dependable agreement for
major reductions of armaments. The German
Federal Government will proceed as rapidly as
possible with building up its agreed contribution
to the Western collective defense system.

For the purpose of contributing its fair share
to the defense of the North Atlantic area, the
United States intends to maintain forces in Eu-
rope, including Germany, as long as the threat to
the area exists. As the North Atlantic Council
agreed at its recent meeting at Bonn, the Atlantic
Alliance must be in a position to use all available
means to meet any attack which might be
launched against it. The availability of the most
modern weapons of defense will serve to discour-
age any attempt to launch such an attack.

III.

The President and the Chancellor expressed
gratification over tlie significant progress made
over the last several months toward closer eco-
nomic integration in Eurojje. The Chancellor
expressed his belief that the treaties establishing
EuRATOM and the European Common Market,
signed at Rome on March 25 of this year, consti-
tute a further step of historic significance toward
European unity. The President expressed the
great interest of the United States Government
and of the American people in these treaties and
his belief that their entry into force will benefit
not only the people of Europe, but those of the
entire world.

IV.

The two governments are in agreement that
efforts must be pressed in the United Nations to
reach agreement on measures for disarmament,
witii respect to both conventional and nuclear
weapons, under an effective system of interna-
tional control.

The President and the Chancellor agreed that,
if a beginning could be made toward effective
measures of disarmament, this would create a
degree of confidence wliich would facilitate fur-
ther progress in the field of disarmament and in

the settlement of outstanding major political
problems, such as the reunification of Germany.

They agi-eed that if such initial steps succeed
they should be followed within a reasonable time
by a comprehensive disarmament agreement
which must necessarily presuppose a prior solu-
tion of the problem of German reunification.
Accordingly, the Chancellor advised the Presi-
dent, as he has the French and British Govern-
ments, that the Federal Republic would consider
that the conclusion of an initial disarmament
agreement might be an appropriate time for a
conference on the reunification of Germany
among the Foreign Ministers of the four powers
responsible therefor. The United States will
consult with the French and British Governments
regarding this matter.

The President stressed tliat any measures for
disarmament applicable to Europe would be ac-
cepted by the United States only with the ap-
proval of the Nato allies, which he hoped would
take a leading role in this regard, and taking into
account the link between European security and
German reunification. He assured the Chancel-
lor that the United States does not intend to take
any action in the field of disarmament which
would prejudice the reunification of Germany.
He stated that the United States would consult
with the German Federal Government closely on
all matters affecting Germany arising in the dis-
armament negotiations.

Washington, D.C.
28 May 1967.

ADDRESS TO HOUSE OF REPRESENTATIVES,
MAY 28

Mr. Speaker, Members or the House of Rep-
resentatives : I am deeply conscious of the honor
of speaking before you, the elected representa-
tives of the strongest and freest nation on earth ;
and with all my heart I thank you for this dis-
tinction. I know that I do not stand here for
myself alone, but for all my countrymen. What
I am going to say, therefore, is meant as a mes-
sage from them to the great American people.

The Federal Republic of Germany is young—
not quite 8 years old. It is still incomplete and
will remain incomplete as long as reunion with
the 17 million Germans living in the Soviet-
occupied zone lias not been etl'ected. We have been

956

Department of Sfafe Bo//efin

sovereign for 3 years; only since then have we
been the masters of our ])olitiral decisions.

When totalitarian national socialism collapsed,
after having inflicted unspeakable suffering on
the world and the German people, it left chaos
behind. There were millions of dead and
crippled, 10 million people who were expelled
from their ancestral homes in the German East,
burned cities, industries and lines of transporta-
tion destroyed, the economy ruined, an adminis-
tration functioning on an emergency basis only,
desperate human beings, and, above all, a younger
genei-ation dangerously exposed to pernicious
nihilism.

The German people went to work, supported
in their first steps by the Western occupation
powers, who gradually became our allies and
friends. They reconstructed their homes, fac-
tories, stores, highways, and railroads. The Ger-
man people worked hard and with self -discipline.
They received invaluable help from outside
sources, both public and private, and especially
from the American people. The great work of
the Marshall plan, undertaken 10 years ago, will
never be forgotten by Europeans. It is my heart-
felt desire at this hour to express our gratitude
for all of this.

Consciously and deliberately, rejecting all
totalitarian thoughts and aims, we began to erect
our Federal Republic in that part of Germany
in which freedom and human rights could be
reestablished; we created this Republic on the
unshakable foundation of democracy — with the
inspired words of Abraham Lincoln in mind —
"government of the people, by the people, for the
people." Freedom, respect for the inalienable
rights of the individual, and the principle of the
rule of law — this is the credo of our constitution.
In this respect we could revert to the best tradi-
tions of our people. Our economy was organized
on the principle of competitive free enterprise
and social justice. We call this economic sys-
tem the social market economy, and it combines
free enterprise with social responsibility. The
economic consequences of war destruction we en-
deavored to distribute equitably on many shoul-
ders, in our thoroughgoing equalization-of-bur-
dens law.

The greatest problems, however, were posed for
us by the world around us, that is, the inter-
national situation. The world of which our new

Federal Republic had to become a part was di-
vided into two camps. The situation confronted
our people with tlie most important decision it
has ever had to make. Without hesitation we
decided — and this is the meaning of the first
parliamentary elections in 1949 — for freedom
against slavery, for the dignity of the individual
against the collective mind, for rule by law
against arbitrary dictatorship. Since 19.53 there
has not been a single Communist in our freely
elected parliament.

In repeated decisions of their own choice the
people of the Federal Republic by a large ma-
jority have confirmed that our nation constitutes
an inseparable part of the free world. The basic
expression of this attitude is our allegiance to the
unity of Europe. Therefore we became a mem-
ber of the Strasbourg Council of Europe and the
Oeec. We participated in the creation of the
European Coal and Steel Community, in the at-
tempt to create a European defense community
and a European political community, and we
hope that the common market and Euratom will
soon be ratified by the parliaments of all six coun-
tries concerned. We have participated in all
these works, knowing that they mean an indis-
soluble bond to the world of freedom.

As early as 1948, when our constitution was
drafted by the Constituent Assembly — the Parlia-
mentary Council under my presidency — we made
a provision whereby parts of our sovereignty
could be transferred by a simple law to a European
community. This was a renunciation of the con-
cept that national sovereignty is still a principle
suitable to the establishment of a political order
in Europe. This principle has cost Europe dearly
in the many wars of the past.

With the free world we share the dangers which
threaten it, dangers to peace. As a country whose
very arteries are now cut — by the Iron Curtain —
we are vividly aware of these dangers. Therefore
we need safeguards. We find these safeguards
within the powerful North Atlantic alliance,
whose main support is the moral, political, eco-
nomic, and military strength of the United States.
Nato, in accordance with the principles of the
United Nations, is an instrument for the preserva-
tion of freedom. The Western World created it
after the Soviets almost completely paralyzed the
security mechanism of the United Nations which
had been devised with so much care and idealism.

June 17, 1957

957

In our strenuous efforts to make our contribution
to the military strength of the alliance, we, too,
have nothing else in mind but the defense of our
liberty. On my word before God, nobody in Ger-
many plays with the idea of using force or war,
and this includes the use of force in the question
of German reunification, which we desire so
ardently. Still fresh in our memory is the horror
of the nights of bombing during the Second World
War and the terrible devastation of our country.

That is why in our sincere love for peace we
follow with such acute attention and sympathy
the efforts of your Government by an overall con-
trolled disarmament to diminish the danger of
war. These efforts, coupled with elimination of
the causes of tension in the world — characterized,
most of all, in defiance of reason, justice, and
morality, by the division of my country and its
courageous capital, Berlin — must in the end give
to mankind the security for which it longs and to
which it is entitled in order to live according to
its true destiny, to the highest principles of
humanity. Without real effort, however, and
without the sincere cooperation of the free peoples
we know that this objective will never be attained.

These are only the most essential facts and
motives that may help you to understand us —
that is, what we are and how we act. Let me
attempt to sum up with a statement that gives
me much pleasure :

The understanding and agreement — I daresay
the cordial friendship — that exists today between
the American and the German people is not the
product of an accidental coincidence of transient
interests. It rests on the common ground of pro-
found convictions. It rests on the only power
that moves free human beings to unite their
destinies lastingly — it rests on confidence. The
German people trust in you. Preserve your trust
in them. This I ask of you.

ADDRESS TO SENATE, MAY 28

Truuslatiou

Mr. President, Members of the Senate : I am
very grateful for the opportunity you have ac-
corded me to speak before you. This opportunity
is an honor for me and my country. I wish to use
it to outline in a few words the general direction
of our foreign policy.

I hope, in this way, to contribute to a clear
understanding which is the basis of genuine trust.
At the same time I hope to make clear how deeply
related are the basic principles characterizing
American policy and German policy.

The first principle, the guiding motive, of our
IJolicy is freedom. There may be differences of
opinion on the methods by which freedom may
best be assured and preserved. Although the
Government led by me may consider dangerous
some of the foreign policy solutions advocated by
other political parties and groups, there is no dif-
ference of opinion among Germans in the sincere
desire for freedom. Since the Bundestag elections
of 1949, it has been clearly demonstrated where
the Federal Republic of Germany stands in the
great worldwide conflict between freedom and
slavery. This is the deeper meaning of the deci-
sion taken at the polls by the German people in
1949.

"Wlien the German people regained their state-
hood and once more were able to exercise their
own free will, the world was split into two camps
and the border separating the free world from the
Communist orbit ran through the heart of our
country, dividing our people. It separated an-
cient German territory from us, land from which
currents of creative spiritual life have enriched
our Western civilization. The German people did
not hesitate to make an unequivocal decision.
Since the elections of 1953 there has not been a
single Communist in our freely elected parlia-
ment. Two grievous experiences influenced the
choice of the German people : the experience with
a totalitarian dictatorship imposed on us during
the National Socialist regime and the daily con-
tact with the reality of communism in the form
of a Communist dictatorship in the Soviet zone
of Germany. But the German people have ex-
pressed their will for freedom not only by the re-
jection of totalitarianism but by the positive de-
cision to form as close an alliance as possible with
the other free peoples of the world. There is no
more emphatic manifestation of this will than
the policy of European integration consistently
endorsed by the great majority of the German
l>eople and their elected representatives — a policy
which the Federal Republic has pursued since its
inception.

The Federal Republic has participated in all
the European organizations set up in recent years :

958

DepartmenI of State Bulletin

the Council of Europe, Oeec, and the Coal and
Steel Community. These integrated commu-
nities, the Coal and Steel Community and the
communities of the common market and of
EuRATOM, which we hope will soon come to life,
are particularly characteristic because in these
organs the Federal Republic renounces part of its
national sovereignty in the interest of larger
European communities. It reflects great credit
on the foresighted ones among the drafters of our
constitution that we can state today that our basic
law already contained a provision permitting the
transfer of sovei-eignty b}' simple majority vote
in Parliament. That was a great decision. It
meant no less than a repudiation of the idea, no
longer valid in a disintegrating world of European
polities, that the sovereign national state is the
ultimate and highest entity of political organiza-
tion— an idea which has cost Europe so much blood
and treasure. We are glad that the idea of a
larger European patriotism has formed roots, par-
ticularly among our young people. Through the
medium of these European organizations our al-
liance with the free world has become truly un-
breakable.

Our second goal is peace. The horrible experi-
ences of the recent World War have left their
marks on the German people. The millions of
dead, the horrors of total war in which the hinter-
land is no longer left untouched, the terrible de-
struction of our cities, the ruin of our economy,
the collapse of the administrative structure — all
this is still alive in the minds of the German
people. But since peace— according to the famous
dictum of the German philosopher Immanuel
Kant — is not a natural condition among the peo-
ples but the result of a conscious effort of man,
our policy has seized on all possibilities open to
it to secure peace. With the creation of the
United Nations mankind took a tremendous stride
forward toward securing peace and justice in the
world. This objective has not been attained as
yet, because the Soviets have paralyzed the se-
curity mechanism of the United Nations by in-
numerable vetoes. As a result, an effort had to
be made to bring about this security by the estab-
lishment of organizations parallel and supple-
menting the United Nations. The charter of the
United Nations, in wise foresight, has shown a
path toward this end by confirming the right of
individual and collective self-defense. This path

logically led to the foundation of the Atlantic
community. The Atlantic community is an in-
strument of peace because it is designed to deter
anj' aggressor. It achieves this aim by coordi-
nating and developing the armed strength of the
free West in such a way that any aggression be-
comes too big a risk for the aggressor. This con-
sideration has caused the Federal Republic to be-
come a member of the Atlantic community. Mili-
taristic tendencies are far removed from our pur-
pose and aggressive intentions even more sol
Since we consider all our endeavors in the mili-
tary sphere solely as defense efforts, we follow all
the discussions on measures to bring about con-
trolled disarmament with lively and positive in-
terest. If these efforts are combined with elim-
ination of the causes of tension in the world, they
must, in the end, bring to the world the blessing
it so ardently desires: the safeguarding of peace.

The third basic principle of our policy is unity.
You know of the heavy and oppressive burden
weighing upon us because many millions of Ger-
mans are forced, against all justice and moral
principles, to live separated from us and under
Communist terror. In order to understand this
fully, one must realize that what is at stake here
is not merely a border problem which can be dis-
cussed and settled among neighbors. We are
faced here primarily with a human problem— the
arbitrary manner in which a people is torn
apart — parents separated from their children, un-
able to see them except under extreme difficulty
and danger. Millions of people are forced to live
under a regime of lawlessness, arbitrary rule, and
slavery.

The German Republic will be incomplete as
long as it is confined to the territory of the Fed-
eral Republic. Let us recall the circumstances
under which the Federal Republic was founded.
After the moral and material collapse into which
the National Socialist regime led us, the victori-
ous nations assumed supreme power in Germany.
The three Western occupation powers, faithful to
the responsibility which they shouldered at the
same time and to their principles which were also
the principles of the United Nations, proceeded to
rebuild a German state on a democratic basis.
The Soviet Union, on the other hand, misused its
trusteeship and subjugated the Soviet-occupied
zone to a subservient, satellite regime of Commu-
nists— a regime which had the backing of only

June 17, 1957

959

an infinitesimal percentage of the population as
was demonstrated during the popular uprising of
June 17, 1953. Thus it happened that the Soviet
zone did not participate in the development which
gradually transformed Germany from an object
of foreign rule into a responsible subject in the
community of nations governing itself in accord-
ance with democratic principles.

Therefore, we demand reunion with 17 million
fellow Germans — people wlio are as German as
we are and as freedom-loving as we are, and who
are no less entitled than we are to determine their
own political destiny ; we demand from the fourth
of the victorious powers only that which the other
three, in loyal fulfillment of the responsibility
assumed by them when the German state col-
lapsed, have long since conceded of their own free
will. Thus, our demand is basically a democratic
one, for the essence of democracy is to grant to a
people regarding themselves as an entity tliat
form of government which will permit tliem to
live as a responsible member of the international
community ; and it is at the same time a require-
ment of any general policy aiming at tlie preser-
vation of peace, for only the establishment of an
all-German government would permit the con-
clusion of a peace treaty. This would endow
Europe with that just and enduring political
order which today— 12 years after the war — is
still denied to it.

Political action is the art of bringing to life
those concepts whicii have been recognized as the
ethical foundation of justice. Freedom, peace,
unity — tliese are the aims of our policy, a policy
designed to give effect to the great ideals that
determine the progress of humanity.

STATEMENT BY ACTING SECRETARY HERTER

Press release 325 dated May 29

Mr. Chancellor: It is my honor to bid you
farewell on behalf of President Eisenhower, Sec-
retary Dulles, and the American people.

Your visit here has been of great significance.
The results are reflected, I believe, in the compre-
hensive joint declaration issued yesterday from
the White House by you and President Eisen-
hower. This important docmnent demonstrates

the broad area of agreement which exists be-
tween our two countries with regard to the pol-
icies we will follow in promoting our basic objec-
tive of freedom and peace for all mankind.

Along with the opportunity which your visit
has afforded for a thorough discussion of the
great problems confronting the free world, we
have had the satisfaction of our cordial personal
contacts with you and the other members of your
party. I think that the real substance of the
close understanding between the leaders and peo-
ples of our two countries finds its best reflection
in the personal trust and understanding that have
characterized our relationship with each other.
In this sense all of us who have had any part in
the events and activities of your visit can feel
rewarded.

And now, Mr. Chancellor, permit me to wish
you a safe and speedy journey and to ask you
to convey to the German people upon your re-
turn home the best wishes of the people of this
country.

MEMBERS OF OFFICIAL PARTY

The Department of State announced on May 24
(press release 314) the members of the official
party for the visit of Chancellor Adenauer to
Washington, May 24-29. They are as follows:

Dr. Konrad Adenauer, Chancellor of the Federal Re-
public of Germany

Heinrieh von Brentano, Minister of Foreign Affairs of the
Federal Republic of Germany

Heinz L. Krekeler, German Ambassador

Willielm Grewe, Assistant Secretary for Political Affairs,
Foreign Office

Felix von Eckardt, Director, Federal Press Office

Mrs. Libeth Werhahn, daughter of the Chancellor

Georg Adenauer, son of the Chancellor

Count Georg von Baudissin, Officer in Charge, NATO and
Disarmament Affairs, Foreign Office

Josef Selbach, Personal Aide to the Chancellor

Georg von Lilieufeld, American Desk Officer, Foreign
Office

Peter Limbourg, Executive Assistant to the Foreign
Minister

Sviridbert Schnippenkoetter, Executive Assistant, Foreign
Office

Karl-Guenther von Hase, Officer in Charge, Press Rela-
tions, Foreign Office

Comdr. Bernd Klug, Defense Ministry

960

Department of State Bulhtin

Secretary Dulles' News Conference of May 29

Press release 323 dated May 29

Secretary Dulles: I have just learned that the
"VVliite House has announced the prospective resig-
nation of Secretary Humphrey as Secretary of the
Treasury. I want to express ray deep regret that
he has felt it necessary to return to private life.
We have had, I think— at least from my stand-
point—a very ideal Cabinet relationship. He has
worked vigorously, ably, and intelligently for
what he regarded as sound fiscal policies; I have
tried to work with equal ability for what I regard
as sound foreign policies. Occasionally, although
only rarely, our ideas did not readily coincide.
But when we got together and talked things over,
we always found a solution which was, I think,
compatible both with sound foreign policy and
with sound fiscal policy. And I think never in the
period of more than 4 years that we have served
together have we ever had a difference which we
had to bring to the President to resolve between
us. We always settled our differences face to face.
And out of that has grown a very deep friendship
and respect, which will continue on even though he
no longer serves in the Cabinet.

Now for your questions.

Q. Mr. Secretary, it seems like an appropriate
time to ask you a question which comes up from
time to time at these conferences. What are your
own personal plans for the future?

A. My personal plans for the future are to serve
as Secretary of State. (Laughter)

Q. For the remainder of this administration,
Mr. Secretary?

A. Well, I am not making plans that run ahead
as much as nearly 4 years. That's quite a long
time for anybody to plan. And I hope you will
not draw any inferences from that, one way or
another, because none are intended.

iune 17, 1957

London Disarmament Talks

Q. Mr. Secretary, to come to a question of the
substance of policy, as I guess that is the way you
would put it, you are familiar now ivith Chan-
cellor Adenauer^s views on disarmament negotia-
tion. The Chancellor said in a news conference
yesterday that he thought German territory should
not become involved in a first-stage disarinament
agreement. Is it your understanding that any
first-stage disarmament agreement which we
might propose in the London talks would have no
bearing on German territory?

A. They would have no bearing on German
territory except to the extent and to the degree
that the Federal Eepublic wanted them to have
a bearing on German territory.

You may recall that at my last press confer-
ence ^— I think 2 weeks ago— I spoke of the fact
that the extension of the first stage to Europe
would, I thought, involve very considerable politi-
cal difficulties. And I think that what Chancellor
Adenauer has said confirms the thought that I
then expressed. I believe that in this disarma-
ment task the important tiling is to get going
somewhere, somehow, just as rapidly as possible,
and that unless we do that it will be very difficult
to stem the tide of ever-mounting military arma-
ments and to check the armament race. The im-
portant thing is to get started in another direction.
And I think myself that the scope of the initial
start is less important than the fact of making
some initial start and that, therefore, we should
try to start where there are the minimum of politi-
cal complications.

Now Governor Stassen has a very considerable
degree of flexibility in that respect, and whether or
not the initial start includes Western Europe will

' Bulletin of June 3, 1957, p. 894.

961

primarily depend upon the Western European
countries themselves. You have already heard
the views of the Chancellor in that respect. No
doubt other "Western European countries will have
their views. It is not the desire or intention of the
United States to try to impose its views upon the
Western European countries.

Q. Mr. Secretary, prior to the Chancellor's
public remarks yesterday was it your understand-
ing from you/r private talks with him that his
view was as -firmly negative as it appeared to he
in public on the inclusion of Germany in any first-
step aerial inspection scheme? You said before
that you had not excluded it, although you did
say it would be more difficult. He appeared to
exclude it absolutely in any first step.

A. Well, I would not want to attempt to qualify
or weaken in any way anything the Chancellor
said for himself. He speaks clearly, authorita-
tively, and anything that we said in private I
think ought not to be drawn out in any effort to
derogate in any way from what he said himself
publicly on this subject.

Q. Mr. Secretary, what position did you and
the President take in relation to Big Four talks
while you were talking with Adenauer? The
communique ^ only said, I believe, that the United
States luould talk with Britain and France about
it.

A. We said that we would do so, and I believe
that the Federal Republic itself has also ap-
proached the Governments of the United King-
dom and of France. I think it should be clearly
borne in mind that the talk which the Chancel-
lor suggests between the four powers is not any-
thing that is just around the corner. It is a talk
which he contemplates should take place upon
the conclusion of the first phase of disarmament
talks, and the conclusion of those will at best,
I think, be a somewliat protracted effort. And,
therefore, we are not, I think, thinking about
anything that may happen within the next few
weeks or even the next few months.

Q. Mr. Secretary, is it your understanding that
Governor Stassen's instructions are to negotiate —
to attempt to negotiate — a first-step agreement
with the five powers on the London subcommittee,
or even a larger group; or stnctly a bilateral ar-

' See p. 955.

rangement between the United States and the
Soviet Union?

A. It would not, as I now see it, be a bilateral
arrangement with the Soviet Union. I think
it would be difficult to devise any significant first
step which was merely a bilateral arrangement.
Even if you take, for example, what I gave for
illustrative purposes, the Arctic area; that, of
course, involves Canada to a very considerable
extent, it might involve Denmark to a very con-
siderable extent in relation to Greenland; so that
a disarmament agreement could not even to that
extent be bilateral. Also, aspects of it which
relate to nuclear weapons production would al-
most surely involve other states. Therefore, it
could not effectively, I think, be a purely bilat-
eral arrangement.

Q. Mr. Secretary, did Chancellor Adenauer
bi'ing up at all the question of German property
which has been seized by the United States Gov-
ernment in the World War?

A. Yes, he mentioned that. I think he reported
that at his press conference yesterday.

Q. Mr. Secretary, on this disarmament, I won-
der if I could ask you a question as to whether
or not the Chancellor''s views changed the Amer-
ican position at all in the London talks?

A. Well, it is difficult to say that one's point
of view is not always to some extent changed by
an exchange of views with other people, particu-
larly a person of as positive A'iews and of as re-
spected views as the Chancellor. I would say
that insofar as the instructions given to Governor
Stassen, as our representative there, are con-
cerned, the exchange of views which we had did
not involve any alteration of the guiding instruc-
tions given to Governor Stassen.

Q. Mr. Secretary, do you think that the injec-
tion of the German question into the disarmament
talks at this stage might not prejudice the prog-
ress of the first-phase negotiations?

A. Well, I don't quite get the point of that. I
think that it can be said, and I think that it would
be plausibly said, that to make the reunification
of Germany a condition precedent to any steps in
disarmament would certainly prejudice any early
completion of the first stage.

Q. Isn't that what we have done in a sense?

962

Department of State Bulletin

I

A. Chancellor Adenauer has said that he does
not think that the first stage should deal with
matters which miglit have an impact upon the
reunification of Germany; therefore, I tliink it
means tliat this very complicated and difficult
problem of the reunification of Germany would
not perhaps, according to his views at least, be
included in the first stage.

Riots on Formosa

Q. Mr. Secretary, do you expect that the riots
on Formosa will lend to any change of policy hy
the United States in dealing with the question
of the Nationalist Government.^ or on a broader
level would it affect our policies in the Far East
generally?

A. I do not think it will involve any change of
our basic policies in the Far East or our policies
toward the Nationalist Government. It would
perhaps accelerate the kind of studies which were
already under way as to how to minimize some-
what the inevitable tensions which arise when
large numbers of forces— troops particularly of
a foreign country — are quartered on foreign soil.
That is a very delicate and explosive issue, and
it has been imder study for some little time to see
whether those risks could be mitigated. I think
that aspect of the matter will involve some
changes. I hope it will. But as far as the politi-
cal policies are concerned, I do not anticipate any
change.

Q. Mr. Secretaiy, have you made a judgment
that the presence of large numbers of American
troops on Formosa was the underlying cause for
the rioting?

A. Well, we had not yet made any final con-
clusion because the evidence is not all in. But in-
sofar as there is available evidence, it would seem
to me to indicate that that is the basic cause of
the trouble.

Q. I loanted to ask a question on the problem
of troops in other countries. We have a tense sit-
uation in Japan over the Girard case which in-
volved a court-martial proceeding or an argument
over xohich country would try the sergeant.
Could you give us your thinking on the Girard
case as it affects Japanese relations?

A. "Well, there would be a definite conclusion
on that matter probably in the early future. But

at the present time I would merely say that that
matter is being studied very carefully at a high
level. Of course, the issue involved in that par-
ticular case is not merely the question as to
wlietlier under the status-of-forces agreement
Japan or the United States should exercise juris-
diction. Tliat matter was gone into very thor-
oughly, and a decision was reached last March by
the representatives of the United States to waive
jurisdiction in tliat particular case.

Now, this waiver practice is one that has been
very widely followed. I think that witliin the
last 3-year period of which I have the figures in
mind there were approximately 12,500 cases. The
Japanese waived jurisdiction in over 12,000 of
them. The waiver procedure is quite general
where there is perhaps concurrent jurisdiction,
and that procedure was followed in this particu-
lar case by a waiver by the United States. So
the case had gone somewhat beyond the prelimi-
nary stages.

Q. Mr. Secretary., in connection loith the For-
mosa rioting there have been reports that the Chi-
nese Nationalist Government had actually encour-
aged publicity in connection with its protest
against the acquittal of the GI in the independent
reports from Taiwan. Have you any evidence of
the Chinese Government in any way contributing
to the stirring up of the emotions?

A. No, we have no evidence to indicate they
contributed toward it. Perhaps they were not as
vigilant as they might have been to try to take
measures to keep the situation under control.
They may have miscalculated the explosive char-
acter of the situation and of the crowds who gath-
ered in front of the various United States build-
ings.

You know this question of foreign troops is a
very, very difficult question. If I can just take
a minute, I might tell you a little episode which
is deeply engraved in my mind. It was in Paris,
in the winter of 1918-19. I was there with the
U.S. delegation at the Peace Conference. We
were in the Hotel Crillon, and the pavements in
front and around the Hotel Crillon were guarded
and controlled by U.S. Marines.

I remember coming in one night. There was
an old bent French woman with a cane, and she
was berating, and waving her stick at, one of
these American Marines and trying to drive him
away and crying out, "This is my home." This

June 17, 1957

963

was late at night and raining, and there wasn't
a crowd around. But I suspect, if there had been
a crowd around, she would have had a lot of sym-
pathy. And that happened just a few weeks after
the armistice. The American troops had barely
stopped the fighting, with very heavy casualties,
for liberating France. I always remembered the
picture of that French woman, that rainy cold
night, tackling this Marine with her little cane,
which she had to prop herself up with.

Well, I think we have to realize this is a very,
very difficult problem — a worldwide problem —
and we have to find better ways than we have yet
found to cope with it. It occurs almost every-
where. And it is particularly likely to occur in a
country which has been, in the past, subject to
extraterritorial privileges and which has resented
them and has a strong feeling against them. It
is not at all surprising that there should be mani-
festations of this sort.

I do not think they go to the fundamentals of
our relationship in any way with the National
Government of China, but they are incidents
which are likely to occur. They are unfortunate.
We have to take better steps to deal with them.
And the facts in this particular case were such
as, I think, tend to arouse extreme nationalist
feeling.

Of course, we know the Chinese are given to
that sort of thing. We have had antiforeign
outbreaks in China for a long time. You re-
member the Boxer outbreaks of 50 or 60 years
ago. I don't regard this as anything indicating
anything particularly new. Rather, I regard it
as indicating something that is very old — a senti-
ment which is deeply embedded in all people and
particularly embedded in the Chinese people.

Q. If I may pursue that question. You say
you harm been studying this for some time. Can
you tell us whether there is any im^ninent over-
all administrative policy likely to ie promulgated
to deal with this situation?

A. There is an overall administrative study
which has been going on for a good many months
to deal with this whole problem of our so-called
overseas bases and forces abroad. I expect some
report will be made from that study within the
next few months, and probably decisions will then
be taken on the basis of it.

Q. In that connection, Mr. Secretary, the
Philippine bases negotiations have been stalled on

964

the very same point. Will this be pertinent to
that negotiation?

A. This study?

Q. Yes.

A. AVell, the study is not primarily directed
to the status-of-forces agreements as such. The
study will bear upon the question as to the ex-
tent to which we really need as much territory,
or area, as we now use for bases — whether we
actually need as many troops as we have there —
whether there are not excesses which can be pared
down without in any way injuring, and perhaps
in the process increasing, the defensive value of
those bases for the free world.

Q. Mr. Secretary, when you were talking about
the Girard case, you said that the decision on
jurisdiction was reached last March to turn the
man over to the Japanese authorities. Is it cor-
rect to interpret your remarks this Tuoiming as
saying the high-level study that is going on noio
on the Girard case specifically is not concerned
with ivho should have jurisdiction but with the
political aspects of the case? I am not clear on
that.

A. We are studying all aspects of the case. I
merely pointed out the fact that last March there
was through the normal processes a decision
reached that the United States waived jurisdic-
tion and the Japanese authorities were notified
accordingly.

Q. Mr. Secretary, is it our intention to provide
any aid to Syria in vieiv of JordarCs charges that
Syria and the Communists are plotting to destroy
Jordan?

A. As far as I recall, we have not had in mind
recently and do not now have any program for
aid to Syria.

Q. Mr. Secretary, in regard to the Formosa
rioting, some reports have said that the code room
in the Embassy loas broken into by persons equip-
ped lulth certain types of hacksaivs and ichat not,
lohich would hardly be spontaneously found in the
streets. Do reports indicate that to be true, and
was there a serious compromise of American
codes, as has been reported?

A. Our reports indicate that is not the case, and
I just had a report this morning tliat tliere had
been no compromising of our code facilities.

Department of Sfafe Bulletin

•J

Q. Mr. Secretary, noio that comparative calm
seems to prevail in the Middle East, could you
give us your oion personal estimate of the chances
for a more permanent solution of the Suez Canal
issue or the Israeli-Arab conflict?

A. It is extremely difficult to make any quick
appraisal of those chances. There are so many
factors which interlace, and you start to go down
one path and then you see something cuts across
it and you go along that way, and then you see
something else. I wouldn't want to hazard a
guess. I would say this: There are some slight
indications, I think, that the time may be ap-
proaching when some of these basic problems can
be dealt with without some of the intense emo-
tionalism which has prevented any progress in the
past. But you will see, if you think back to what
I said, it is a highly qualified statement, in which
I think I said "slight" and "maybe."

Trade With Communist China

Q. Mr. Secretary, tvould you give us an esti-
mate of what is happening in Paris on the trade
question loith Communist China? I understand
the negotiators there have reached an impasse.

A. Well, I am afraid you may be riglit, and I
believe a statement will be made probably to-
morrow about it.' But in accordance with what
I understand to be the practice of asking coun-
tries not to make unilateral statements while the
meetings are still going on, I think I will have to
ask you to wait until you get that statement,
which I think will be forthcoming tomorrow on
that matter.

Q. Mr. Secretary, will this statement he com-
ing from the Department here or Paris?

A. I think from the Department here. There
is a draft statement being worked on here. But
I think we are not supposed to give it out until
tomorrow.

First-Stage Disarmament Agreement

Q. Mr. Secretary, I would like to go back to
the question of disarmament because I ajn not
clear about the relation of the United States pol-
icy and vieios expressed by Chancellor Adenauer.
Let me put it this xoay: Does present U.S. pol-

' See p. 967.
June 17, 1957

icy ascribe a top priority, or a first priority, to
the idea of an inspection zone in the Arctic area
rather than in Europe?

A. We attach a top priority to getting a sub-
stantial inspection zone wherever we can get it
quickly. Now, if we can get it quickly in rela-
tion to Europe, that is acceptable to us. If W9
can't get it quickly in relation to Europe but
could get it quickly as regards some other area
wliich is substantial enough so tliat it involves a
real test of good faith and enables the significance
and the requirements of aerial and ground inspec-
tion to be tested out, then we take that other area.
In other words, we are not set upon any particu-
lar area. What we are set upon is trying to get
something started quickly; and as far as we are
concerned, we will take any area which is suffi-
ciently free of political complications so that the
whole process does not get bogged down.

I believe this is a situation where we should
try to bring under control the thing which is con-
trollable as rapidly as possible. The question as
to what the area is should be determined, in my
opinion, not by theoretical considerations but by
the question, what is the substantial area wliere
it is possible to get going with the greatest
rapidity and with the least political complica-
tions ?

As I indicated 2 weeks ago, before I had this
exchange of views on this with Chancellor
Adenauer, we foresaw, and it took no great vision
to do so, there would be quite a lot of complica-
tions in finding a European area where you could
get quicldy started. There are all sorts of prob-
lems in Europe. There is the problem of unifi-
cation of Germany ; there is the problem of Nato
strategy. You have got quite a number of coun-
tries involved in that area. So you have a mul-
tiplicity of parties. For all these reasons I
foresaw, and indicated, it might not prove to be
the case that the European area would be included
in the first step.

That is not because we don't want to have it
included in the first step. It is merely a question
whether that can be done quicldy enough to stem
the tide and to give the people faith to believe
that something can come out of the disarmament
talks. I don't think you can go on talking and
talking and talking for year after year and not
get anywhere. I think there has got to be some

965

progress made in order to keep these talks alive.
I think, if you make progress to some appre-
ciable degree, that in itself would make it pos-
sible to make progress to a larger degree. That
basically is the concept which Governor Stassen
carried back with him.

As you know, he is in Paris today with his
associates on the disarmament subcommittee — at
least the Western powers associates — to discuss
this whole problem at the Nato Council meeting.

Q. Mr. Secretary, in view of Chancellor Ade-
nauer^s views on this and your own statement
about the folitical complications in Europe is it
not now clear that Europe is not a place where
you can get some hind of inspection zone quickly,
and does that not limit our efforts to something
like the Arctic Circle?

A. Well, I don't want to be the one that pro-
nounces anything like a death knell on including
Europe in the initial stage. I think one has to
take into account the views that the Chancellor
expressed here yesterday, and undoubtedly other
European countries will have views. They may
want to exchange views with Chancellor Ade-
nauer. Perhaps as a result of that exchange of
views the situation will alter. I would not be
the one — it would neither be appropriate nor
timely for me — to say that the initial stage will
not include Europe. I see lots of troubles in in-
cluding Europe in the first stage. But if the
Europeans can clear up those troubles so they can
get started there, we are happier.

Q. Mr. Secretary, to follow that point, do you
think it would he easier for Chancellor Adenauer
to adapt his views a little closer to those of the
United States after the September election in
Germany? {Laughter)

A. I wouldn't want to ascribe to the Chancellor
any important political views as being motivated
by political considerations.

Types of Inspection

Q. Mr. Secretary, aren't there two things in
inspection in this agreement, the aerial inspection
and inspection for disarmament such as may be
agreed upon?

A. You have in the whole package several
kinds of inspection. You have a certain amount of

what you might call fixed patrols, which go along
with the aerial inspection. You may remem-
ber that at Geneva, when President Eisenhower
made his proposal for an aerial inspection, the
Soviets made a proposal for fixed ground patrols
at key points. Later on the President indicated
that he would be glad to accept that as part of
the program, and to that extent the aerial inspec-
tion and your fixed ground patrols of important
positions go along pari passu. Then you have
the question of whether, if you agree that the
future production of nuclear material shall not
be used for weapons purposes — you have got the
problem of establishing an adequate control and
inspection system to check and verify that. Then
you have the question of whether, if certain con-
ventional weapons are taken away from the na-
tional forces and put into some internationally
supervised warehouse or depot, you have to have
some inspection on that. Then at some stage
you may have to have roving inspection teams to
go about a country to verify whether certain ele-
ments of the disarmament agreement have been
carried out. You have a whole series of inspec-
tion possibilities. You have to have a communi-
cations system established also, because there is
no use having people in an area — flying over an
area— if, assuming they detect something signifi-
cant, they have no method of getting the message
quickly back. So there is a whole complicated
system, a complex problem, and there is no one
method alone which is sufficient.

Q. Mr. Secretary, has not Chancellor Adenauer
already said that he toovld accept aerial inspec-
tion over West Germany if it were not confined
to West Germany? Did he express any such view
to you?

A. Well, I think that that is a question quite
apart from whether or not the European area
and the Federal Republic of Germany is included
in a so-called first stage or subsequent stage.

Q. He meant a subsequent stage rather than a
first stage?

A. I don't know. I am not familiar with the
quotation you give me, and I wouldn't want to
interpret it.

Q. Is it your understanding that he does not
favor aerial inspection over Germany in the first
step? Is that correct?

966

Department of State Bulletin

A. Well, I read and you read, I guess, what
he said yesterday.

Q. Mr. Secretary, on another point here, at the
news conference yesterday Chancellor Adenauer
said flatly it was his understanding that the
United States was not going to propose including
Germany in a first-stage agreement. He said the
United States had no such intention as far as he
understood it. Is that accurate?

A. It is quite accurate to say that the United
States does not set itself up as the nation which
has a right to propose or dispose with relation to
other countries. Anything done with relation to
Europe will only be done in accordance with the
freely expressed will of the European countries
concerned. We do not intend to put them in an
awkward position by making proposals that ii>
volve them without their prior concurrence.

Q. Was the proposal that we made, which you
confirmed at your last press conference as an
official American proposal for such a zone in
Europe, including Germany, was that made with-
out consultation with the Western European
countries?

A. I think I said that the United States did not
exclude an initial zone in Europe if that was the
willingness and desire of the European countries
concerned. Certainly I never intended to suggest
that the United States would lay down an official
proposal which would involve other countries. I
think we have always made it absolutely clear that
we do not suggest anything affecting another
country without its full cooperation. I am sure
I also said that we would not want to propose any-
thing which directly or indirectly impinged upon
the reunification of Germany without the full con-
currence of the Federal Eepublic.

Q. Mr. Secretary, in view of your estimate of
the meeting with the Russians mentioned in yester-
day'^s communique, that it would he in the very
remote futwre, what was the point of mentioning
it at all other than helping Mr. Adenauer at home?

A. Now don't put words in my mouth. I did
not say the "very remote future." I said it was
not just around the corner or a matter to be dealt
with, or what I thought would come to pass, within
the next few weeks or even the next few months.
I do not conceive how it is possible to get even a
first stage, a rather limited agreement, through in

a matter of just a few weeks or anything short of
several months. I did not want the impression
to get around that I am about to be packing my
bags to go to a conference of foreign ministers
sometime this summer. I do not figure it is going
to happen at that time.

Q. Mr. Secretary, have there been any adminis-
trative developments during the last few weeks
since we talked with you about the question of
admitting newsmen to Red China? (Laughter)

A. I believe that there have been some sugges-
tions come in from various quarters in the news
world, the news community, which Mr. Berding is
studying. But I have been pretty well occupied
with some other matters.

Q. There is no change in the policy? It still
stands?

A. The policy is the same.

Q. Mr. Secretary, with regard to the Formosa
thing again, you said it would not affect our policy
toward Nationalist China or the Far East, but you
did talk about a possible reduction of troops there.
What about the investment of our foreign aid pro-
gram there? Do you regard Taiwan is as good an
investment as it was before? Will it continue to
receive the same large share of our foreign aid
expenditure as it has? Do you think it is justified
in view of the demonstration that they can't even
cont7'ol their own mobs?

A. Well, I have known mobs in the United
States that couldn't be controlled, and we didn't
stop all government expenditures on that account.

U.S. To Continue Total Embargo
on Trade With Communist China

Press release 328 dated May 30

The United Kingdom has decided that it can no
longer agree to maintain a level of security con-
trols over its exports to Communist China more
severe than the multilateral controls applied to
the U.S.S.R. and the Soviet-bloc countries in
Europe.

The United States is most disappointed by this
action. It means that an agreement for the con-
tinuation of a differential trade control toward
Communist China has not been reached, even
though many of the nations which have been en-

June J 7, ?957

967

gaged in the recent talks on this subject expressed
their support for such a program. For its part
the United States contemplates no change in its
policy of total embargo on trade with Communist
China.

The recent discussions among the cooperating
governments have revealed that there was a wish
on the part of all countries to retain a unified
approach on the question of trade controls on
exports to Conununist China. A majority of the
countries, including the United States, sought a
unanimous agreement on the maintenance of a
differential. The United States believed that the
security interests of the free world would be best
promoted by the maintenance of a significant dif-
ferential. After an initial difference of opinion
on the precise extent of the differential, the
United States agreed to a proposal developed by
representatives of a number of the participating
countries. This proposal obtained the support of
a majority of the cooperating governments.^

The United Kingdom, however, supported by
some countries, believed that there was no merit
in applying a different level of controls to trade
with Communist China as compared with the
Soviet Union and that this differential should
consequently be totally abolished. No one advo-
cated any reduction in the existing security con-
trols applying to exports to the Soviet-bloc coun-
tries in Europe, wiiich controls would also con-
tinue to apply to Communist China.

The British policy announcement on China
controls, while at variance with the position which
the United States sought in the recent talks,
makes clear the intention of the British Govern-
ment to continue the application of security con-
trols on strategic expoi-ts to Communist China
on the same basis as is presently being applied to
the Soviet-bloc countries of Europe.

Israel Supports Purpose
of U.S. Middle East Policy

Department Announcement

Press release 307 dated May 21

The United States has noted the statement made
by the Government of Israel on May 21, 1957, in
which that Government expresses its support of

the purpose of the Middle East policy set forth by
President Eisenhower and endorsed by joint reso-
lution of the Congress of March 9, 1957.^ The
doctrine expressed in this resolution was discussed
with the Government of Israel by Ambassador
James P. Richards, Special Assistant to the
President, during his recent visit to that coun-
try. 2 The United States shares and supports the
principles and objectives outlined in Israel's state-
ment relating to American policy under the
doctrine.

Israel Communique '

On May 2, 1957, Ambassador James P. Rich-
ards, special representative of the President of the
United States, visited Israel to explain the prin-
ciples and purposes of American policy for the
Middle East as proposed by President Eisen-
hower and endorsed in a resolution adopted by
both Houses of Congress of the United States.
Owing to the shortness of the time available these
discussions between the two Governments were
concluded in Washington.

The Government of Israel welcomed the sup-
port of the United States for the preservation of
the independence and the integrity of Middle
Eastern states and for the development of eco-
nomic strength dedicated to the maintenance of
their independence.

In the course of these conversations the Govern-
ment of Israel reaffirmed its adherence to the fol-
lowing principles wliich, it is confident, also com-
mand the sympathy and support of the United
States :

1. Israel reaffirms that in the conduct of its
international relations it is guided by the prin-
ciples and purposes of the Charter of the United
Nations to strengthen universal peace, to develop
friendly relations among nations, to settle inter-
national disputes by peaceful means, and to achieve
international cooperation in the economic, social
and lumianitarian spheres.

2. In conformity with its obligations under the
Cliarter, it is opposed to aggression from any quar-
ter against the territorial integrity and political
independence of any coimtry. It entertains no

' For background, see Bulletin of Ma.v 13, 1957. p. 772.
968

' Bulletin of Mar. 2.'i, 1957, p. 4S1.

' For Amhassadnr Richards' radio-TV report of his
mission to tlie Middle East, see Hid., May 27, 19i)7, p. 841.

' Made pulilic tiy the Government of Israel at Jerusalem
and at Washington on May 21.

Department of State Bulletin

aggressive intent against any other people or na-
tion anywhere, and is agreed on the importance
of preserving the political independence and the
territorial integrity of the countries of the Middle
East.

3. It recognizes that every effort must be made
to achieve lasting peace both in the Middle East
and throughout the world and will cooperate with
the United States and other friendly governments
to this end.

4. It recognizes that for the promotion of sta-
bility, well-being and peace in the Middle East
it is vital to promote economic development dedi-
cated to the strengthening of national inde-
pendence.

5. The Government of Israel expresses its ap-
preciation of the interest shown and assistance
rendered over many years in the development of
the State of Israel by the Government and the
people of the United States.

The American Doctrine and tlie Mutual Security Program

Statement by James P. Richards
Special Assistant to the President ^

I am very glad to appear before you to report
on my mission to the Middle East and to answer
any questions you may have in mind. I returned
on May 8 from a 2 months' trip as a Special
Representative of the President to explain the
joint resolution of the Congress on the Middle
East. This journey reinforced my ever-growing
conviction of the importance to the national secu-
rity of the United States of both economic and
military assistance extended under the mutual se-
curity program. I would like to tell you about my
trip and why it has further convinced me that
we can ill afford to dispense with, or even drasti-
cally curtail, the benefits that have accrued to us
from these programs.

In his message to the Congress on January 5,-
the President stated that he was sending a mission
to the Middle East to explain the proposals he
then advanced. He asked me to take on the job.
"While the Congress was considering the joint
resolution, I briefed myself on the problems which
would be encountered. Thus I was able to depart
promptly after the passage on March 9 of the

' Made before the Senate Foreign Relations Committee
on May 27 (press release 316). For Ambassador Rich-
ards' radio and television address made on his return
from his mission, see Bulletin of May 27, 1957, p. 841.

' Ibid.. Jan. 21, 1957, p. 83.

June 17, 7957

428376—57 3

resolution.' Accompanied by a small staff drawn
from the Departments of State and Defense, Inter-
national Cooperation Administration, and Usia,
I traveled almost 30,000 miles, visiting 15
countries.

A Fourfold Task

The President had entrusted me with a fourfold
task:

1. To explain the spirit and purposes of the
joint resolution of the Congress on the Middle
East;

2. To determine which countries wished to par-
ticipate ;

3. To make commitments for programs of eco-
nomic and military assistance, within the provi-
sions of the joint resolution and within the
limitation of funds appropriated by the Congress,
which I deemed to be essential and urgent to ac-
complish the purposes of the program ; and

4. To report to the President my findings and
make appropriate recommendations.

Regarding task number one, I explained in de-
tail the President's Middle East proposals, as
endorsed by the joint resolution of the Congress,

' Ibid., Mar. 25. 1957, p. 480.

969

to the top government leaders in the 15 countries
we visited — Afghanistan, Ethiopia, Greece, Iran,
Iraq, Israel, Lebanon, Libya, Morocco, Pakistan,
Saudi Arabia, Sudan, Tunisia, Turkey, and
Yemen. I was careful to bring out the significance
of this American Doctrine as symbolic of United
States recognition of the need to play a more ac-
tive role in the Middle East, but only at the request
of area countries. I believe the enunciation, b.y
the executive and legislative branches of the Gov-
ernment acting together, of a completely American
policy was profoundly impressive to peoples of
the area. The different heads of state invariably
had many questions about the doctrine and wanted
particularly reassurance that the United States
was not out to impose anything or exact any
political conditions derogating from national
sovereignty. I believe I was able to convince my
questioners that this was far from our intentions.

I did not visit three of the countries in the
Middle East. In Jordan, King Hussein was prov-
ing by his actions that he understood thoroughly
the meaning of international communism and was
capable of moving decisively to protect his coun-
try's independence and territorial integrity. We
liave tried to help him by providing aid through
normal channels. The second country, despite our
inquiries, avoided making definite arrangements
for a visit by my mission. From the third coun-
try we received a piece of paper which might have
been construed as an invitation, but the attitude of
the Government as shown in official statements and
through the controlled press made it abundantly
clear there was no desire for real discussions.

Regarding task number two, 12 of the coun-
tries I visited publicly declared their support of
the purposes and objectives of the doctrine. Sub-
sequently Israel also endorsed it.'* Two countries
with which we held discussions, Sudan and
Yemen, thought it desirable not to take a public
position at this time, but they did not reject the
American concept. Naturally the degree to which
different nations recognized the threat of inter-
national communism, or were willing to proclaim
opposition publicly, varied. Some stood up shoul-
der to shoulder in open opposition to interna-
tional conmiunism. Otliei's are doing quiet but
nevertheless effective work in the same cause.
One tiling did not vary. That is the determina-

* See p. 968.
970

tion to maintain independence and to achieve
economic and social progress. To this end
United States help was welcomed.

Regarding task number three, in 9 countries
I determined that it was essential and urgent
to extend United States economic or military as-
sistance in accord with the doctrine. Conditions
were such that immediate action would clearly
further the purposes of the joint resolution either
by biiilding up strength to assist in countering
possible overt armed attack or by increasing eco-
nomic strength and internal security against sub-
version. I authorized in principle approximately
$120 million in aid, always calling attention to the
provisions of the joint resolution, including the
requirement that appropriate congressional com-
mittees should be informed 15 days before the
money was used. Slightly more than half of the
money went for economic assistance. Most of this
aid was in the form of grants, although I insisted
on loans whenever feasible. The military aid
granted was always in furtherance of established
military plans. It consisted, for example, of ad-
ditional hardware, expendable items such as am-
munition or military construction. In the eco-
nomic field our aid was directed at, for example,
communications, transportation, education, and
water development. I sought opportimities to en-
courage regional cooperation. To the Baghdad
Pact I made available $12,570,000 toward projects
approved by its Economic Committee for im-
provement of the regional communications sys-
tem, railroad connections, and a higliway project.
This aid is intended both for surveys and actual
construction.

With respect to task number four — to report
to the President — I met with him immediately
after my return. Although my mission was not
cliarged with seeking solutions to intra-area prob-
lems, I found that the various countries visited
held strong views on these matters. In accord-
ance with requests from different governments, I
have conveyed their views to the President. The
importance of this American Doctrine with re-
spect to intra-area problems is tliat, by turning
back international communism, tlie Communists'
continuing efforts to inflame these quarrels will
bo frustrated and thus their solution facilitated.
I can assure you that our Government is not neg-
lecting intra-area problems. Most of the coun-
tries visited are involved in sucli difficulties, many

Department of State Bulletin

of them most complex and of the utmost impor-
tance to the people concerned. They are working
to find solutions, and the United States, quietly
and through normal channels including the
United Nations, is doing what it can to lielp.

Impressions

On a trip like the one I have just completed,
one comes back with a mass of impressions. I
would like to call j'our attention to six that stand
out most clearly :

1. The intensity of the aspiration.s of the peo-
ples of the Middle East for econo7nic and social
progress. They are determined to improve their
lot. They recognize the limitations of their own
resources. Tliey are therefore determined to get
outside help. The Communists are blandly offer-
ing aid on deceptively generous terms. We laiow
from experience the trap behind such offers, but
it is not so evident to people in the area desperate
for help. Entirely apart from any liumanitarian
motivations, a hard-boiled desire for self-preser-
vation demands that we not leave these nations
with no choice but to become ensnarled with the
Communists. We should not be deluded by dis-
tance into thinking the fate of each country of
the Middle East does not concern us. Once en-
sconced, communism spreads like the plague.
The effects of the closure of the Suez Canal is a
recent reminder of tlie area's importance to our
welfare.

2. The value attached to old or newly won in-
dependence. To the peoples of tlie Middle East
their independence is either a sacred tradition or
a new precious right they are just learning to
exercise. In either case they are determined to
preserve it from infringement by any source.
Sensitivity on this score is an overriding obses-
sion. Their receptivity to this American Doctrine
rests upon our success in convincing them that
the United States will act only at their request
and then only to help them help themselves. The
return to the United States from the aid extended
under the doctrine, or otherwise, flows from what
it enables the recipient countries to do for them-
selves. Constructive results would be negligible
were political conditions attached. Fortmiately
the mutuality of interests between ourselves and
area countries and the clear evidence of the value
to each of cooperation lead us naturally along the
same path.

3. Attitude toioard international communism.
Communism is anathema in the Middle East
from the point of view of religion and traditional
social values. None of the countries wish to see
that atlieistic creed established on their soil. But
some nations have a tendency to think they can
flirt with international communism, using it for
their own purposes while keeping free of its ten-
tacles. Their willingness to take risks in this
regard increases in proportion to their inability
to find a helping hand elsewhere and also, in
certain cases, to see (he possibility of what they
consider just solutions to intra-area problems.

4. Attitude toward the United States. I had
not realized what a reservoir of good will we
have in the Middle East. Government leaders
do not hesitate to blame us for certain policies.
Nevertheless, they have faith in our good inten-
tions, respect for our motives, and are eager to
test the two-way value of cooperation. We have
a unique opportunity and a responsibility which
we can neglect only at our own peril.

5. Recent improv orients in area conditions.
I believe the last months have seen significant im-
provement in the area situation. Perhaps it is
best described as the opening of possibilities to
press forward for permanent gains toward peace
and stability. With like-minded people we have
made a beginning. But there are no grounds for
complacency lest we quickly slip back behind the
starting line. The Middle East is not an area of
political equilibrium, if it is possible to find such
a situation anywhere in our present world. It is
a case of either going up or down hill. We want
to keep on climbing.

6. The importance and complexities of owr aid
programs. These aid activities of ours are often
large-scale operations. In the Middle East they
are carried on under the most difficult conditions
by relatively small numbers of people who un-
doubtedly make mistakes but whose efforts in
their entirety are a credit and a value to our
country. But there is always room for improve-
ment. It is the duty, indeed the obligation, of
all concerned constantly to search for means of
increasing their effectiveness. One lesson ex-
perience has taught is that economic aid is not
something one can package neatly into 1-year
bundles. There is need for continuity in draw-
ing up and carrying out these programs and for
flexibility. The changes proposed by the Presi-
dent, I believe, are an important improvement.

June J 7, 1957

971

Two Features of Doctrine

To sum up, there are two main features of this
American Doctrine. The first is the deterrent
effect provided by the declared determination of
the United States to use at the discretion of the
President its armed forces to provide assistance if
requested against armed attack by a state con-
trolled by international communism. We have
made this intent abundantly clear to the U.S.S.R.
and the states of the area. I am convinced the
U.S.S.R. will not risk overt attack as long as we
keep up our global defenses. This assurance has
brought vast relief to countries of the area, espe-
cially to those on the borders of the Soviet bloc
and especially to the responsible military men.
This aspect of the American Doctrine has already
achieved a notable success. The second is the ex-
tension of economic and military aid to build up
strength to resist subversion and to help repel
any attack by international communism. This
cannot be a one-shot operation. The flexibility
in extension of aid provided by the joint resolu-
tion has made an important contribution. How-
ever, the Communists are constantly boring away,
searching for weak spots. We need to have avail-
able, on a continuing basis, the authority to act
quickly. The doctrine as a whole can be judged
a success only if we make good in all particulars.
It will profit little the American people and the
people of the Middle East if we make effective
provision against overt attack but neglect to pro-
vide protection against subversion.

Proposed Amendments to Mutual Security Act

In conclusion, may I make a few observations
regarding the proposed basic amendments to the
Mutual Security Act. You may recall that last
fall I was directed by the Foreign Affairs Com-
mittee as its chairman to conduct a study of our
foreign aid programs and to recommend to the
Congress by January 1, 1957, ways and means for
improvement. If you will consult the record, you
will find that my report included recommenda-
tions for basic changes very much in line with

those now proposed by the President. My views
on the subject have been confirmed by my recent
studies in the Middle East. It is my judgment
that:

1. The mutual security programs, including
provision of both economic and military aid, are
essential to the security of the United States.

2. Flexibility and the ability to act quickly are
of primary importance. The special fund re-
quested by the President, which in the Middle
East will permit him in part to carry on the work
started by the joint resolution, is indispensable to
getting maximum results from the program as a
whole.

3. Besides providing for special and emergency
situations, we need to help meet the demand for
a non-Communist way toward sound develop-
ment. The development loan fund and the
closely related technical cooperation program will
permit us to do this most effectively.

4. We would be unwise indeed, in my opinion,
to forgo the immediate and direct strengthening
of our own defenses to be derived from the de-
fense assistance program. In order that the
American people can clearly understand that the
defense assistance program is an essential part of
our own worldwide national defense program, it
should be included in the Defense Department
budget along with our other national defense
programs.

5. These programs should not be one-shot an-
nual affairs. Authority to spend funds over
more than 1 year is needed and will result in bet-
ter utilization of available moneys.

I am convinced that, by carrying forward these
mutual security programs in the manner recom-
mended by the President in his message of May
21,^ the American people will help themselves by
helping others make their own full contribution
to the common defense and economic advance-
ment of the free nations.

' Ibid., June 10, 1957, p. 920.

972

DepartmenI of State Bulletin

The Middle East — Fundamentals of American Policy

by William M. Rountree

Assistant Secretary for Near Eastern, South Asian and African Affairs ^

I should like to introduce the fundamentals of
our policy in the Middle East by posing a series
of questions. In these questions lie the keys to
the background of the area, its problems, and
our objectives and achievements. I am certain
you, too, have asked :

"Wlay is the Middle East important to us?
What problems do we face in this vital area?
Wliat do we as Americans want in the Middle
East?
How do we achieve what we want ?

The Importance of the Middle East

Let us turn to the first question — why is the
Middle East important to us? Wliy should a
distinguished group of citizens such as that here
tonight be spending the better part of 3 days to
study in detail the problems of an area 8,000 miles
away?

The Middle East is a striking and significant
area. If there is any corner of the world that
can most accurately be called the crossroads of
culture, of peoples, and of political trends, as
well as from the geographical viewpoint, it is
the Middle East. In this area are four of the
world's greatest river systems with a wide variety
in lands and climates. There are rich agri-
cultural areas, and deserts which defy develop-
ment, and two of the world's most important
waterways — the Suez Canal and the Dardanelles.
This area has 70 percent of the world's oil, and
exploration each year adds to the inventory of

' Address made before the National Conference on the
Middle East cosponsored by the Dallas World Affairs
Council and Newsweek magazine at Dallas, Tex., on
May 16 (press release 292).

its minerals. It is the cradle of culture, sacred
and secidar, which forms part of the heritage of
every one of us.

The term "the Middle East" embraces a large
segment of the eastern Mediterranean ai'ea and
of the western portions of Asia. I am not at-
tempting to define this with precision tonight.
Some of my comments may not relate primarily
to the precise area being discussed at this meet-
ing. In general, however, the policies and prob-
lems to which I refer will be concentrated in that
portion of the area we have traditionally called
the Near East.

In an era of interdependence, what happens in
the Middle East is of special significance because
nowhere today are interests more important to us
and more vital to our friends and allies. Take as
a single example the worldwide effects of the
closing of the Suez Canal. In Europe industries
and economies were threatened. In the Western
Hemisphere oil shipments were dislocated. In
the Far East people traditionally dependent upon
the Middle East turned to other sources of supply.
The economies of many Asian and African coun-
tries sustained severe strain. Throughout the
world there was a serious search for alternatives.

We cannot speak of interdependence without
mentioning the importance of independence. It is
only the truly free and sovereign nation which can
cooperate on a basis of mutual interest with
other nations. The Middle East over the past
4 decades has seen the emergence out of isola-
tion and turmoil of many new independent na-
tions. We regard the minds and hearts of the
peoples of these new nations as of great impor-
tance to us. Without their understanding and sup-
port the area would be lost to the free world, with

June 17, 1957

973

political, economic, and strategic consequences of
the greatest import.

It is, I think, significant that in many of the
great cities of the Middle East today the city walls
existed well into the 20th century. Only recently
have these come down and the narrow, twisted al-
leys have been bisected by modern streets. Simi-
larly, the outlook of the i)eople has broadened:
there has been contact with new ideas and new
horizons. There has been a tendency to reject the
past and those associated with the past. There
has been a suspicion of what outsiders said about
other outsiders. The people have wanted to test
their new relationships on their own terms.

The Problems We Face

This area — impatient, emotional, sensitive — has,
not unnaturally, problems arising from its present
ferment. These problems are of concern to us be-
cause they affect seriously the stability of the area
and our relationship with it. The fundamentals
of our policy must be adequate to meet these prob-
lems.

What are the problems we face ?

There is one general problem. The new nations
of the area are imbued with a strong sense of their
nationhood. This pride, this patriotism, goes cor-
rectly by the name "nationalism" — true national-
ism, constructive nationalism. But in some cases
extremist leaders have arisen who seek to exploit
for their own ends this national feeling. Theirs
is a negative nationalism, aimed solely at tearing
down the past. Because the "Western nations have
been for so long present and influential in the area,
this extreme nationalism often takes an anti-
Western form. With a naive belief that nothing
could be worse than tlie past, they turn to new
relationships, sometimes with the Soviet East.

There are numerous specific problems. Many
collateral problems and the widespread sense of
insecurity arise from the frustration of serious,
bitter disputes, often long unsolved. Today with-
in the area of my primary interest there are seven
major disputes between our friends. These give
rise to a multitude of secondary problems.
France seeks a solution to the Algerian question.
The dispute over Cyprus involves Britain, Greece,
and Turkey. The Suez Canal status is vital to
many nations. The Arab-Israel tension clouds al-
most every issue in the Near East and gives rise to
great bitterness. Britain's disputes with Saudi

Arabia over the Buraimi Oasis and with Yemen
over the frontier present difficulties. The Kash-
mir dispute seriously hampers close relations be-
tween the great nations of India and Pakistan,
which emerged from British India.

These problems — the negative nationalism, the
disputes, and the attitudes of mind— woidd be
serious handicaps to progress in any event. To-
day, however, they take on a more serious aspect
because they become the raw material for Soviet
exploitation.

The problems themselves give rise to chronic
dissatisfaction and frustration, sometimes leading
people to seek extremes. The resulting turmoil
provides opportunity for the Communists to use
people in a country for their own ends. Time
and time again we have seen the familiar pattern.
Greece was torn by a bloody civil war; Commu-
nist partisans were openly supplied by satellite
countries to the north. The Communist Tudeh
party in Iran infiltrated every branch of the
Government and threatened the Government itself
until the Shah took strong measures in defense
of Iran's independence.

The Soviet Union has now entered the picture
with arms aid and economic aid designed to in-
crease the influence of international communism
in other areas of the Middle East. The results
have been particularly noticeable in Egypt and
Syria. Local Communist parties have benefited
from these Soviet moves, the motivation of which
is clear.

We have no quick or easy solutions to these
problems. The answere, in the last analysis, must
come from the area itself. I cite some of them to
demonstrate the situations we face in the pursuit
of our own national interest. This interest — en-
lightened self-interest — must, of course, be at the
base of any policy.

Four Fundamental Objectives

What do we as Americans want in the Middle
East?

In answer, we can list four fundamental ob-
jectives.

First, we believe in and hope for the creation of
strong and independent nations which arc able to
resist the effoi-ts of international communism to
subvert tlie area.

Secondly, we believe in contributing, if re-
quested by the nations of the area, to their secu-

974

Department of State Bulletin

rity. In a broad sense, their security is our
security.

Thirdly, we wish to assist the countries of the
area in resolving their disputes in accordance
with the principles of the charter of the United
Nations.

Fourthly, we wish to contribute to the progress
and development of tlie nations of the Middle
East.

We firmly believe that the fulfillment of the
national interests of the United States will flow
naturally from the pursuit and achievement of
these objectives. There will be a developing re-
lationship with tlie area and its peoples on a basis
of understanding and mutual interest. Resources
of the area will be available to tlie free world on
conditions advantageous to both the producing
and consuming countries. Transportation and
communications facilities in this vital crossroads
of the world will be available to us when these
nations are secure in their relationships. Doors
will be open to cultural exchange, to commercial
intercourse, and to increased diplomatic cooper-
ation.

In the achievement of these objectives, and in
our relations with the nations of the Middle East,
we attach the greatest importance to adherence to
tlie principles of justice and impartiality. In the
events of last October we demonstrated by tlie
stand we took our firm intention in this regard.
Two of our greatest allies were involved. We rec-
ognized that there were provocations, yet the
President made it clear that he did not believe
that a resort to force was the remedy for these
wrongs. As he stated in a nationwide television
address on October 31 : "

There can be no peace without law. And there can be
no law if we were to invoke one code of international
conduct for those who oppose us and another for our
friends.

The society of nations has been slow in developing
means to apply this truth. But the passionate longing
for peace on the part of all peoples of the earth com-
pels us to speed our search for new and more effective
instruments of justice. The peace we seek and need
means much more than mere absence of war. It means
the acceptance of law, and the fostering of justice, in
all the world. To our principles guiding us in this guest
we must stand fast In so doing we can honor the hopes
of all men for a world in which peace will truly and
justly reign.

In the disputes that divide our friends in this

= Bui-LETIN of Nov. 12, 1956, p. 743.
June 17, 1957

area, we can continue to command respect only
by demonstrating our sincere interest in fair and
just solutions for all parties involved — by acting
according to principle. There are few black and
white issues. In the resolution of the difficult
problems we face, adherence to our stated prin-
ciples, respect for sovereignty and international
law, and impartiality must be fundamental to our
a])pro!U'h.

Tools of U.S. Policy

Xow for the question: How do we achieve
what we want in the Middle East? We have
listed our objectives. "Wliat are the means by
which we reach them?

There are several fundamental tools of our
policy : diplomacy, military assistance, economic
and technical aid, information and cultural ac-
tivities, and the efforts of our private citizens.

Diplomacy embraces the patient, everyday pur-
suit of our objectives through our embassies
abroad and through the numerous international
organizations and conferences in which we par-
ticipate. It is through diplomacy that we pre-
sent our views, attempt to correct misunderstand-
ings, and negotiate the agreements and treaties
which are the milestones of our foreign affairs.
Nato and Seato, for example, each with a mem-
ber in the Middle East, stand out as results of
the patient efforts of diplomacy. The peace
treaties such as that with Japan which concluded
the war have helped restore those conditions un-
der which progress could continue.

The United States military today occupies a
vital role in our Middle East policy. The mili-
tary aid programs, for example, help to provide
the kind of basic strength to the free nations of
the Middle East which will contribute to their
security. We have extended important assist-
ance to the Northern Tier countries and to other
friends in the area.

Our economic aid is another indispensable in-
strument in our policy. A nation must have in-
ternal strength to resist subversion. In Lebanon
the United States has provided valuable assist-
ance both to meet emergencies and to build for the
future. In Turkey our economic aid has gone
hand in hand with other efforts to bolster this
important country. Our economic programs in
India provide a firm basis for cooperation with
this vital democracy and assist India to maintain

97S

its own internal strength. These are but a few
examples of our economic cooperation with the
nations of the area.

An important part of our aid in the Middle
East today is in technical assistance. Ameri-
cans, many of them from Texas, have carried to
other lands with great success the skills and tech-
niques which have contributed to our economy.
In some countries which have the money and re-
sources for their own development only the skills
are lacking. The teclmical assistance program
provides them and provides a clear indication of
American interest in development at the same
time.

The undeveloped nature of many of the econ-
omies and resources of these nations has made it
necessaiy for us to use governmental grant aid in
many instances. As the economies develop, how-
ever, it is our intention to make greater use of
loans as a form of economic assistance. Grant aid
will continue to be needed in many areas, but the
general proportion of loan to grant will rise.

To be fully successful, our programs must be
understood. We can create this understanding in
part through diplomacy. The peoples of the area
today, however, are increasingly important in the
making of policy and in the pressures which de-
termine the direction of the country. We must
reach them. In this the United States informa-
tional activities i^lay a significant role. We face
throughout the area active Communist efforts to
distort and misrepresent what we say. Often
news of speeches and statements by American of-
ficials reaches the area in brief form. If we can
provide to the overseas United States Informa-
tion Service texts of these statements, at the time
of deliveiy or in advance, our information offi-
cers can take them to editors, explain their signifi-
cance, and give our point of view. Our output
must be regular and authoritative, using all forms
of media.

Another important element in our foreign pol-
icy is the private American. It was really he who
in many ways first carried American influence to
the Middle East. Today the tremendously im-
portant contributions of our missionary and phil-
anthropic movements are reflected on every hand
in the area. Hospitals, schools, and universities
stand as monuments of the contribution which has
been made and is still being made by these insti-
tutions. I can cite particularly the American
University of Beirut, where today the American

foundations and the peoples of the area cooper-
ate in the perpetuation of a great center of Ameri-
can influence.

Our private interests have, in my estimation,
two unique contributions to make in the area,
apart from the provision of capital. They have
the spirit of venture, and they have the skills re-
quired both for production and for the marketing
of the resulting products. The world would be a
much poorer place today without the results of the
risks, the hardships, and the talents that went into
the early oil exploration in the Middle East.
These same opportunities exist today in the area.
I hope that increasingly a climate will be created
so that American industry and commerce can join
the peoples of the Middle East to a progressively
greater extent in developing that region for their
benefit and for ours.

We cannot achieve our objectives in the Middle
East alone. We have longstanding and close
friends, particularly in Western Europe, who
have important interests in this same area. We
have, at times, differed with them but understand
the reasons for the difference and have tried to
move forward.

The United Nations represents another im-
portant and fundamental element in our policy in
the Middle East. For 10 years the machinery
created within the United Nations has watched
over and mitigated friction between Israel and
the Arab States. For 8 years. United Nations ob-
servers have tended the truce line in Kashmir.
The United Nations provided the international
forum through which the difficult issues of the
Suez Canal problem were discussed. This world
organization has a vital role, and we must sup-
port it and work with it.

These are the fundamentals of our policy in the
area: our desire for strong and independent na-
tions, for a peaceful resolution of disputes in ac-
cordance with justice and international law, for
security, for progress and development, and for
a developing relationship with the area and its
peoples. We work for these objectives through
our own efforts, through cooperation with our
allies, and through the United Nations.

Meeting Changing Situations

To implement these fundamentals we. from
time to time, enunciate certain specific policies to
meet specific situations. No one of these repre-

976

Department of State Bulletin

sents tho totality of our policy, but each contrib-
utes to the achievement of our broad objectives.
Within the framework of our fundamental pol-
icies we must be prepared to meet new and
changing situations.

In 1950 we joined with Britain and France in
the Tripartite Declaration.' Wliile recognizing
the need of the Arab States and Israel to main-
tain a certain level of armed forces for the pur-
poses of assuring their internal security and le-
gitimate self-defense, it opposed an arms race.
It declared the deep interest of the three govern-
ments in the establishment and maintenance of
peace and stability and indicated that these gov-
ernments would, consistent with their obligations
as members of tlie United Nations, take action to
maintain the frontiers and armistice lines of the
area. It was pursuant to this policy and our ob-
ligations under the United Nations Charter that
we acted as we did in the recent Egyptian crisis.

The United States has supported the Baghdad
Pact from its inception. In November 1956 our
support for collective security in the area was
reiterated.* We said,

A threat to the territorial integrity or political inde-
pendence of the members (of the Baghdad Pact) would
be viewed by the United States with the utmost gravity.

During the past 6 months, tlie American Doc-
trine has become another significant element of
our foreign policy. President Eisenhower's mes-
sage to Congress on January 5 ^ declared that the
peace of the world and the security of the United
States were endangered by the threat of interna-
tional commimism against the freedom and inde-
pendence of the peoples in the general area of the
Middle East. The doctrine was endorsed by a
joint resolution of Congress which stated that
the United States was prepared to use its armed
forces at the discretion of the President to assist
any nation or group of nations requesting assist-
ance against armed aggression from any country
controlled by international communism. The doc-
trine further provides for military and economic
assistance to nations of the area seeking such as-
sistance in order to preserve their independence
and territorial integrity.®

' For text, see ibid., June 15, 1953, p. 834, footnote 2.
* Ibid., Dec. 10, 1956, p. 918.
' IMd., Jan. 21, 1957, p. 83.
'Ibid., Mar. 25, 1957, p. 481.

You may now ask, "Are our policies achieving
the objectives?"

I believe we can answer definitely in the affirm-
ative. In doing so, we recognize fully that many
problems remain — difficult problems which may
take years to solve. The position of the United
States and the West and the continued independ-
ence of the nations of tlie area continue to be seri-
ously threatened by the Soviet Union and inter-
national communism. Despite the strenuous
efforts of these forces, however, our standing and
influence remain. There is, moreover, a growing
understanding on the part of tiie peoples and
governments of the area of the real dangers to
their peace, security, and progress.

Our assistance programs have gained the re-
spect and cooperation of the greater part of the
nations of the area. I believe it is no exaggera-
tion to state that we are contributing substantially
to the economic awakening in the area, just as
ideas from the United States have contributed to
a political awakening. New ambitions and new
hopes are being created. People once resigned
themselves to their conditions, their fate. But
now, in India, in Pakistan, in Iran, Iraq, Leba-
non, Turkey — to name but a few — there are im-
pressive development programs which the United
States contribution has, in varying degrees,
helped to make successful. We can, of course,
only help ; for the most part it must be, and should
be, up to the governments and peoples.

Ambassador James Richards has just returned
from his trip through the Middle East to explain
the American Doctrine.' In liis journey of over
30,000 miles, Ambassador Richards visited 15 na-
tions. Twelve of these publicly endorsed the
principles or purposes of the doctrine. In those
nations where there was no public endorsement
the door remains open. Ambassador Richards
found a growing awareness of the menace of in-
ternational communism, a fierce determination on
the part of these nations to protect their inde-
pendence, and a deep reservoir of good will to-
ward the United States.

You have followed, I am sure, the recent events
in Jordan. We have stated our keen interest in
the preservation of the independence and terri-
torial integrity of Jordan, as we would for any
nation so threatened. We have demonstrated

' Ibid., May 6, 1957, p. 724 ; May 13, 1957, p. 763 ; and
May 27, 1957. p. 841.

June 17, 1957

977

that this is no idle gesture. We have responded
to Jordan's request for aid.

I would not, however, wish to give an impres-
sion that I was overly optimistic. We camiot
afford to be too sanguine. We continue to face
extremely difficult problems which pose a great
challenge to our policy. But we believe that our
fundamentals are sound and our objectives are
attainable. With continumg perseverance on our

part and with the support and interest of our
people we can look forward with some hope to a
time when the problems of this area are reduced
and our relations with all of the countries are on
a somid footing. We believe there is an identity
of interest with the countries of the Middle East
and that by working together we can each benefit
and move toward a more peaceful and stable
world.

Berlin and Soviet Methods in Germany

by Eleanor Laming Dulles

Special Assistant to the Director, Office of German Affairs ^

In a period when the fate of the Nation depends
on an understanding of Soviet intentions and ca-
pabilities it is important to study evidence of the
nature of their policies and plans wherever such
evidence is to be found. Many interesting signs of
uncertainty of direction and fluctuating tactics
are recorded in the history of their behavior in
the last 10 years of their military occupation of
East Germany and East Berlin.

Three things become clear in the course of such
a review focused on Berlin and Germany. One is
that the basic Soviet aim has been, and is, to
force submission to Conmiunist rule at almost any
cost. The second is that the choice of Soviet
methods changes as they blow hot and cold in their
dealings in Europe. The third is that any evi-
dence which might be interpreted to mean that
the Western Allies, including the German Fed-
eral Republic, might weaken with regard to Ber-
lin leads to prompt attempts to encroach on areas
which have been held by the West at considerable
cost. In contrast to this, the frequent demonstra-
tions that the free world stands firm with West

'Address made before the Women's National Repub-
lican Club at New York, N.Y., on May 22 (press release
311).

978

Berlin and that the will to resist of the Berlin
population cannot be broken have almost always
led to a softer policy and reduction of threats and
pressures.

While the German situation differs markedly
from those where the Soviets exert pressure in
the Near and Far East, it is significant for any
study of Soviet intentions. In Berlin Soviet ag-
gressive gestures and harassment of its people
are worthy of consideration and indicate a basic
insecurity with respect to their position in Europe
and the future of Germany. This insecurity, in
turn, results in no small measure from Russian
realization of the German rejection of their dic-
tatorship, their police system, and the determina-
tion of those both in East and West Germany to
withstand alien pressures.

No one questions the importance the Soviets
attach to their policy in Germany nor the fact
that their attitude toward the city of Berlin is
a key element in this policy. Thus, the Berlin
story merits careful study and can throw light
upon their actions elsewhere in Europe. In fact,
the past and future events in this central point
in Europe may well indicate the issues in nego-
tiations which will demand the attention of
leaders elsewhere in the free world.

Department of State Bulletin

Early Expectations and Plans

In Xovember 1944, some months before the war
was over, in three-power consultation agreements
were reached by the United States, the United
Kingdom, and Soviet Russia in regard to the
administration and status of Berlin. Provision
was made for a governing authority, the Kom-
mandatura, on which the Soviets as well as the
Western occupying powers would sit. These
agreements were linked with the zonal divisions
of Germany, which included France from 1945
on. They were based on the assumption that a
way must be found to work in a constructive
manner with the Soviets.

Only after the Communists took over Czecho-
slovakia in 1948 and after the indication of So-
viet aggression westward were the full diiSculties
of the situation realized. At this time, encour-
aged by their success in Prague, the Soviets en-
deavored to force the Allies from the city of Ber-
lin by their attempt to cut it off from Western
Europe. It is clear that the early plans, while
recognizing the extent of postwar devastation
which the city would face, did not contemplate
adding to the immense task of reconstruction the
additional problems of limited access and con-
tinuing harassment. These material and psycho-
logical problems were compounded by the dis-
tance of the city from the area governed by the
Federal Republic.

Since, in the period from 1945 to 1948, prior to
the blockade by the Soviets, it was still possible
to hope for a free economic interchange between
Berlin and its normal hinterland and even be-
tween the East and West Zones of Germany, the
questions of economic and political reconstruc-
tion loomed large. There was relatively little
anxiety over the long-range attitude and aims of
the Soviets since it was assumed that the passions
aroused by the German invasion of Russia would
die down and reasonable adjustments to the post-
war requirements of Europe could be achieved.

It was in this atmosphere of war and early post-
war occupation that the corridors of access — road,
rail, water, and air — were agreed in a manner
which seemed at first to be adequate. Thought
was given to supplying the needs of the city and
to assuring logistic support of the occupation
forces of the three Western powers, whose head-
quarters were not, as in the case of the Soviets,
in contiguous territory. It is noteworthy that

similar arrangements for Vienna proved satis-
factory. Only with the Soviet blockade of Ber-
lin in the spring of 1948 were the future difBculties
brought into the foreground and faced by Ber-
liners and the rest of the non-Communist world.

The brutal revelation of Soviet strategy in 1948
came as a shock to the whole civilized world. The
death of Masaryk in Czechoslovakia became a
symbol. The Berlin blockade brought a mo-
ment of fateful decision. The Soviet demands
on the Germans and the forcible stoppage of sur-
face travel and traffic to Berlin at this time con-
stituted a major turning point in the relation of
the entire Western World to the Soviet bloc.
Moreover, the decision had to be made not only by
the Western Allies but also by the Berliners and
the free world concerned with the problem. The
choice made by the Berlin authorities to resist
the enticements of the Communists, particularly
the offer of ample food and fuel, and the willing-
ness of the people to assume voluntarily the risks
of associating themselves with the three Western
Allies were crucial to developing the strength of
the German Federal Republic and the outlook
for future Germany, its democratic orientation
and its hope for unification of East and West.

The early years of the occupation of Berlin
were thus compounded of surprise and disappoint-
ment, with a growing awareness of the serious
dangers involved for the Western World in the
Berlin position. Clearly, the Allied commitments
made there could not be abandoned. The signifi-
cance of our maintaining our position in Berlin
for the entire satellite world and for the people
in bondage behind the Iron Curtain was recog-
nized when tlie tliree Western Allies issued the
tripartite declaration of May 27, 1952,= with re-
gard to the security and welfare of Berlin. In
this declaration, repeated on several occasions, it
was stated that an attack on Berlin from any
quarter, or on the allied forces there, would be
equivalent to an attack upon the three occupying
Western powers. From this declaration there
could be no retreat.

General Soviet Attitude After the Blockade

From the end of the blockade in 1949 and the
world-recognized success of the airlift, the fluc-
tuating nature of Soviet behavior became the more

' For text, see Bulletin of June 9, 1952, p. 897.

June 17, 1957

979

enigmatic. For a period of close to a decade the
Soviets have maintained their separate position
in tiie city. They have remained outside the al-
lied Kommandatura which, although its practi-
cal importance is reduced for a reconstructed West
Berlin, continues to meet now, as in 1946, to con-
sider Berlin problems.

The Soviets, unable to win acceptance, have
surrounded the city with large military forma-
tions and with continuing show of force. Their
armed divisions maneuver, often in and near the
city, in a threatening manner. They have devel-
oped a paper structure to support their political
puppets in an artilicial prominence which has be-
come less than convincing in the face of the wide-
spread German repugnance for their spurious
authority. They have pursued a changing and
unpredictable policy of harassment to individuals.
They have subjected the city to various types of
annoyances. These are often of tragic conse-
quences to individuals but have had only a tran-
sitory and relatively ineffective influence on the
political and economic recovery of the city as a
whole.

None of these measures has been able to prevent
the impressive growth of industry, nourished by
American aid and by subsidies from the Federal
Republic in Bonn. No Communist action has
been able to dampen the spirits of the people, who,
once they made the vital decision in 1948, have
not wavered in their Western allegiance. The
Soviets are constantly probing for opportunities
to move westward, but they have found no falter-
ing of the Allied support of the city and the po-
litical backing which has been afforded by Nato
countries and by the free world generally.

The Soviet treatment of the city smce 1949 has
three main forms. There has been an attempt to
intimidate by means of repeated threats, some ex-
plicit and some indirect. There have also been
efforts to prevent recovery and disturb equanimity
through various types of restrictions and inter-
ferences with travel and transport, and further
there have been acts of terror and repressive meas-
ures against individuals which have kept blood
pressures high but which have not basically
altered the policy or the programs which either
the city government or the Federal Republic has
given to Berlin. These tactics have tended, to
the extent that they have been influential, to in-
tensify the support from the West. Efforts have

980

been made to detach Berlin from the West by
fright and weariness, on the one hand, and to
persuade the United States and Europe that the
cost of holding Berlin was unduly high. Neither
attempt has been fruitful, nor will either be in
the future.

All of these Soviet tactics have varied from time
to time. Pressure has increased at times of major
Allied decisions. The main conclusion, resulting
from an examination of these events, is that the
Russians neither have been able to wear down the
Berliners nor divide the Allies on the German
question. They have rather revealed their own
inability to advance w'orld communism in this
area and the near bankruptcy of their policy over
the decade.

Police Methods and Terrorism

The terrorist phase of Soviet behavior can per-
haps be recalled with a brief reference to their
frequent extreme tactics and the irregular and
usually unexpected actions of their soldiers and
of the People's Police under their control. A
typical but particularly spectacular and tragic
case is that of the kidnaping of Dr. Linse, which
occurred in 1952.

Dr. Linse, a lawyer who was well known for his
fight for human rights, was seized from the street
in front of his house in broad daylight in the
U.S. sector of Berlin. A gi-oup of 4 gangsters
aided by 13 others in a carefully prepared plan
supported by the Communist authorities executed
the kidnaping. They seized a taxi, surrounded
Dr. Linse, and forced him into it. They drove
with their victim at high speed to the zonal bor-
der, where the official Communist guard, wlio had
been told of the plot, raised the barrier so they did
not have to slow down as they passed through.
Before they crossed into the Soviet Zone, a shoe
dropped from Linse's foot, still protruding from
the half-closed door.

Numerous witnesses watched, powerless to pre-
vent the abduction. Shots were fired by the gang-
sters, but the bystanders and West Berlin police
were unarmed and could not resist. As the pains-
taking investigation progressed, some of tlie per-
sons connected with the plot confessed and
knowledge of this official effort to intimidate those
working for human rights in the East Soviet-
occupied areas became a symbol of the efforts of
a free people to defy a police state.

Department of State Bulletin

Dr. Linse may still be living. In any case, his
name will never be forgotten. He represents
thousands, many of whom may be less well known,
languishing in prisons or executed for alleged
acts of resistance to the Communist regime.

During one of the periods of most brutal re-
pression at the time of the June 17th revolt an
incident took place which will always be remem-
bered. Without any evidence of complicity on
his part, the Conununists summarily executed a
Berlin worker, Willi Goetling.

The latest case is that of Professor Harich,
condemned to 10 years' imprisonment for diver-
sionism even though a Communist. Professor
Harich was a talented sociologist teaching at the
University of East Berlin. At the time of the
Hungarian revolt some of the students at this
university expressed sympathy for students in
various countries subject to oppression. Harich
was alleged to have incited disloyalty to the Com-
munist regime and to have endeavored to "re-
form" the party. His punishment was prompt
and merciless. It was intended to deter those
who ventured to question policy as those more
seriously tending to revolt.

There have been other cases in such numbers
as to bring terror to all those who played an out-
standing role either in attempting to defend their
fellows in Communist prisons or to help those
who have been attacked by the Communist leaders
as "Western tools" or "warmongers," or otherwise
subject to threats of personal violence and death.

These episodes cannot be represented statis-
tically, but in general it can be said that in recent
times they have been less frequent. The contin-
uing possibility of being kidnaped in this city,
which is divided in theory but where barriers do
not prevent easy access from one sector to another,
has undoubtedly affected the personal behavior
of many Berliners, making them more watchful
in their movements, but has not altered either their
political views or their performance of their daily
tasks as politicians, as businessmen, or as teachers,
ministers, or public officials.

From the fact that the Communists have not
increased their activities along these lines and that
there have been relatively few instances recently
one is forced to conclude that they may themselves
have come to doubt the effectiveness of such
methods. "WHiile it is highly probable that they
have given instructions to those in command of

the People's Police (Vopos) and their military
establishments to be tough and to create an atmos-
phere of alarm, it is unlikely that they have given
specilic orders to carry out any considerable num-
ber of kidnapings. Even the present line of
policy, however, is sufficient to keep alive the
bitterness of the West Germans and the Berliners
toward the occupying forces from the East.

In their terrorist actions one sees another of
those evidences of Russian insecurity and lack of
constructive planning in their relation to the city
and in their program with regard to the Federal
Ixepublic or even to the satellites in general.
While there is a discernible effort to restrain re-
sistance and silence objections behind the seizure
of a few leading individuals who have been out-
standing in the fight for freedom, recent cases of
trouble have not taken this form but have been
rather isolated acts of terror which would imply
a degi'ee of uncertainty in the high-level policy
of the Communists with respect to Berlin.

Threats of Retaliation

A series of threats has been issued with respect
to the city in particular, and German policy in
general, on various occasions. Most of these have
been directed in the first instance at the German
people, trying to prevent their turning for support
to the West — and only indirectly at Berlin. Some,
however, have had more specific reference to the
city. The general intent of this series of threats
has been an endeavor to persuade Western Ger-
many that its alliance with the Western free world
would eliminate the possibility of reunification of
Germany and the ultimate freedom of Berlin from
its ring of oppression.

These threats have not been paralleled by prom-
ises of reunification on a basis of free elections.
They have thus failed to intimidate and failed to
persuade. It is not possible to make a clear link
between these warnings from the Soviets and their
occasional proposals on reunification.

In 1948 the development of Bizonia and Tri-
zonia as phases of the Western efforts to move
toward a free and sovereign Germany were both
occasions of strong statements from Moscow. The
setting up of the Federal Republic in 1949, the
granting of sovereignty, and the linking of West
Germany with Nato were similarly the occasions
of strong statements calculated to force the Ger-
mans to turn from the West to the East.

June 17, 7957

981

One of the latest of these threats has been asso-
ciated with the decision for the military buildup
in West Germany. Once the decision was clear
that Germany would be an important element in
Nato and once there was practical clarification of
the military program, there came simultaneously a
surprisingly friendly tone into the letters of Bul-
ganin to the Chancellor [Konrad Adenauef].
Meanwhile no restrictions of any broad conse-
quence have affected the status of the city. In
fact, production and trade from the city to the out-
side has increased 20 percent in the past year and
has more than tripled within the last 4 years.

The Eussians, in all probability, consider that
their policy with respect to Berlin has been of
little gain for them. They hold their line, it
would appear, in the hope that at some future
point they can challenge the Allies' position and
use it if there was a weakening of support. As
they see the Western sectors of the city in a stage
of balanced and extremely vigorous expansion,
and as they watch the cultural manifestations
which come with a sound vitality, they must won-
der both at the strength of this island in their
Communist empire and at the inefficacy of the
measures which they have used.

Incidents of Harassment of the City

It is interesting to note some of the past at-
tempts by the Soviets to thwart Berlin's recov-
ery. Many times pressure has been exerted and
then relaxed because of the fundamental dilemma
facing those who wished to persuade or compel
but cannot risk a desperate uprising in the zone
where they were entrenched. The necessity of
making a choice between persuasion and terror-
ism in an attempt to compel people to do what
they do not want to do, seen elsewhere as well,
explains the fluctuating nature of the Soviet be-
havior in respect to the city. As long as its citi-
zens have turned westward, Soviet policy has been
designed to prevent restoration of normal condi-
tions and to increase difficulties. I shall mention
several illustrations of types of harassment which
have been initiated and which have then been
terminated or softened. The dates of change in-
dicate the fitful nature of Soviet policy.

One type of harassment which caused serious
concern in 1952 and 1953 was the trouble over
the stamping of the permits required by the Com-

munist authorities for the shipment of goods out
of Berlin. Our economic experts thought that
interference with these exports of manufactured
goods was an attempt to strangle the reviving
economic life of the city. There has been no sig-
nificant trouble of this kind since 1953, when the
permits were taken care of promptly.

A few months later, in 1953, bumps to slow up
traffic were placed in the roads in the East at
border crossing points. At the same time the
barriers at the zonal sector borders were increased
in number and strength. At that time when these
unusual steps were taken, the High Commission-
er's office interpreted these annoyances as fore-
shadowing a probable split in the city. Events
showed that this policy was not adopted, and in
the last 2 years the bumps have been removed by
the Communists.

In 1953-54, on the pretense of preparing the
Rothensee shiplift, for a period of months one of
the main barge canals was closed. Again the
question was raised as to whether a "creeping
blockade" was under way. This form of harass-
ment did not continue into 1955, nor was it re-
peated. Only a reasonable period of closure,
mainly because of weather, has taken place.

Another disturbing restriction to traffic oc-
curred in 1955. At that time more than 100 barge
permits expired. For a time the captains of the
barges did not dare send their boats to Berlin for
fear they would be seized or incur expensive de-
lays. Various requests were made to prolong the
permits or to allow the use of old permits. For
a time the passage of barges ceased. The requests
were renewed from time to time and suddenly, in
December 1956, the whole package of 100 or more
permits were validated for future transit in and
out of Berlin. There has been no trouble with
respect to the barges since 1956.

An even more serious threat to the economic
life of the city was announced at the end of March
1965. The Communist authorities set a new scale
of exorbitant Autobahn tolls on trucks going to
and from Berlin. This, again, was characterized
immediately by some observers by tiie phrase
"creeping blockade," likely to assume serious pro-
portions. After fruitless negotiations lasting
some weeks the Federal Republic decided to pay
the increased tolls. It was feared that, once these

982

Department of State Bulletin

payments were met by the Government, they
would be raised again to higher levels. Fortu-
nately this form of blackmail has not occurred
and traffic has flowed normally. In fact, it is 30
percent higher than in early 1955.

The delays in clearing German trucks at check
points have also seemed at times to suggest an
intent to enforce a blockade on the city. These
intermittent delays have been eliminated in each
case after a brief period.

A review of experiences such as these and other
aspects of the Communist pressure on Berlin does
not appear to me to indicate a consistent plan on
the part of the Soviets. The changing policy has
not been clear in direction nor effective in pre-
venting reconstruction. It has to some extent
stimulated extraordinary efforts and occasioned
many evidences of support of Berlin from out-
side. It is not clear that the city has suffered any
substantial net disadvantage because of these oc-
currences. Traffic in and out over recent months
has been dependable. There has been no signifi-
cant threat either to the Allied position there or to
the increasing Federal Republic concern with
Berlin as a future capital.

In spite of the fact that the Soviets find Berlin
a constant source of annoyance and an Allied in-
strument for thwarting their Western drive, it
is clear that they cannot by these methods destroy
the spirit and the vitality of the city. Even if
they continue their frequent attempts to probe for
Western weakness, there is no reason to think that
they are willing to take substantial risks in the
area. They have not, in fact, challenged the Al-
lied rights with respect to the city or the Ber-
liners' position since 1949.

Conclusion

The strange history of Berlin in the past decade
gives a sound basis for the conclusion that nothing
short of war can seriously disturb the morale of
the city. A review of the sequence of events can be
a source of encouragement to all other nations on
the margins of freedom. It can show the positive
effects not only of the will of the people to resist
tyranny but also the importance in this situation
of even symbolic military forces, such as are main-
tained in Berlin, at points of danger. Here we
find a people who have been through periods of
acute distress and have adjusted their lives to the

necessities of the times, a citizenry able, cour-
ageous, and adaptable. They are operating a
municipality which can compare with those of
many nations in Europe and can be expected to
increase their resources and to improve their situa-
tion in the years that lie ahead.

One must realize that there is a deep weariness
that comes with a long, continuous struggle.
However, against this weariness there is the vig-
orous reaction to the provocative behavior of the
Communist occupying authorities. The very irri-
tations and dangers of their situation stimulate a
vigorous response and give ample assurance that
their efforts of a political nature will continue to
have a vital meaning, and the momentum of their
economic life is likely to build up until their
standard of living approximates that of West
Germany. Berlin has been a test case, within con-
stricted geographic limits, of the failure of Soviet
methods. This failure will continue, in Berlin
and elsewhere, until the Soviets realize their error.

United States Asks Departure
of Hungarian Attache

Press release 327 dated May 30

Following is the text of a note delivered on
May 29 to the Charge d'' Affaires of the Hun-
garian Legation, Tibor Zador.

Sir : I have to inform you that the presence in
the United States of First Lieutenant Karoly
Meszaros, Assistant Military and Air Attache at
the Legation of the Hungarian People's Republic,
is no longer agreeable to the United States Gov-
ernment.

Accordingly, it is requested that you inform
your government of the desire of the United
States Government that the departure of Lieu-
tenant Meszaros from the United States be ef-
fected not later than June 3, 1957.

For the Secretary of State :
Jacob Beam
Deputy Assistant Secretary
for European Affairs

Mr. TmoR Zador

Charge d^ A f aires ad inteiim of the
Hungarian Feople''s Republic.

June 17, 1957

983

Committee for Hungarian Relief
Submits Final Report

WHITE HOUSE ANNOUNCEMENT

White House press release dated May 14

President Eisenhower on May 14 received the
final i-eport of the President's Committee for
Hungarian Refugee Relief.

The President approved the committee's re-
quest, following a meeting witli committee mem-
bers, that the committee be discharged on the
basis that it had completed the work for wliich
it had been appointed. The President thanked
t]ie -members for their work, and tlie people of
the United States for "the wonderful spirit of
America in accepting and caring for these
refugees."

The President also expressed his admiration
and deep appreciation for the dedicated work of
the many religious and other voluntary agencies
which conducted tlie job of resettlement at such
an unprecedented rate and in so many other ways
helped the refugees. He likewise praised the ac-
complishments of the Government departments
and agencies which performed vital functions in
the program.

Tlie President emphasized his agreement with
the committee's statement that it was not dissolv-
ing because America's work for the Hungar-
ians— here and abroad — is over. The policy of
this country is to continue to meet its full share
of the free world's responsibility and unique op-
portunity to help these people and to assist
Austria, which with such great sacrifice cared
for so many of them, the President pointed out.

The President approved and released the com-
mittee's report.

REPORT BY PRESIDENT'S COMMITTEE FOR
HUNGARIAN REFUGEE RELIEF

On December 12, 1956 you appointed this Committee to
assure full coordination of tlie efforts of all the volun-
tary agencies engaged in Hungarian refugee relief with
each other and with the Government agencies involved.
This work has now been done. This is the final report
of that work and subject to your approval the Committee
will now be dissolved.

We are not proposing that your Committee dissolve

because America's work for the Hungarian refugees —
here or abroad — is over. The policy of this country is
to continue to meet its full share of the free world's re-
sponsibility and unique opportunity to help these brave
people who had revolted against the tyranny of Com-
munism, as well as to assist Austria, which by making
great sacrifices gave them asylum. This policy includes
not only continuing to bring refugees to the United
States, but also extending major assistance in other ways.
Since, however, the requisite machinery is now in opera-
tion to provide this help on a normal, rather than an
emergency basis, the continuance of this Committee is
not necessary. One striking evidence of this change is
the termination on May 9th of the humanitarian mission
of the Joyce Kilmer Reception Center with the depar-
ture of the last refugees. It was possible to close
Kilmer, not because no more refugees are coming, but
because we are now organized to absorb almost directly
into our society the remaining refugees to be brought
here.

II

The Transatlantic Lift

The magnitude of the exodus of Hungarians into
Austria became clear by last December 1st, and your
program to help meet the emergency there called for
bringing 21,500 refugees to this country within a few
weeks. On January 1st, you announced that this pro-
gram would continue as the need continued. Up to
May 1st a total of 32,075 reached our shores. Virtually
all of these have been permanently resettled. So far
as we know, no comparable mass movement into Amer-
ica has ever occurred in so short a time — of persons all
penniless and few of whom could speak our language.

Substantially all of this movement was accomplished
by a joint effort of the U.S. Military Air Transport
Service (Mats), including both U.S. Air Force and
Navy planes; of the U.S. Military Sea Transport Service
(MsTS) with its ocean transports; and of the Inter-
governmental Committee for European Migration
(Icem). With complete safety. Mats transported
13,120 on 214 flights ; Msts 8,945 on 5 ocean voyages ;
and IcEU 9,664 on 133 flights. While Russian tanks
were firing on Hungarians, U.S. military planes and ships
were carrying many thousands of them to the safe haven
of our free land. Like the Berlin airlift, the meaning of
this operation was not lost on the peoples of the world.

Ill
Reception and Resettlement

At the Joyce Kilmer Reception Center, ably operated
by the U.S. Army, more than twenty voluntary and
Government agencies served the refugees.

These agencies were completely independent of each
other and reported to their own individual head-
quarters. Therefore, a co-ordinating office of the Presi-
dent's Committee was established at Kilmer and all of
the agencies there readily accepted its organizational
plan. The Kilmer operation became a unique team

984

Department of Stale Bulletin

formed of businessmen, soldiers, educators, Government
civilian personnel and tlie representatives of many volun-
tary agencies and of organized labor.

Job skills of tbe refugees were ascertained, and an ef-
ficient system was set up to match skills with job offers.
To standardize the operation of the Reception Center,
and to assure that the experience gained at Kilmer would
be readily available for any future contingency, the Com-
mittee prepared a comprehensive organization manual.
By early January, the rate of resettlement had been in-
creased several times over that prevailing only a month
before.

The function of the Committee throughout was to as-
sist these agencies, not to take over their work. It was
the agencies themselves, Government and voluntary —
many of the latter with religious affiliations — which did
the job. Uealth and security investigations were pur-
sued in detail by the Government departments respon-
sible, relieving public concern on both of these grounds.
Up to May 1st, only 5 out of more than 32,000 refugees
have had to be deported as security risks.

Three major factors contributed to the success of this
program of resettlement — first, the wonderful spirit of
America in accepting and caring for these refugees ;
second, the dedicated work of the religious and other
agencies which conducted the unprecedented job of re-
settlement ; and, finally, the quality of the refugees
themselves. More than half of the employable refugees
were professional, skilled or semiskilled workers. Many
were scientists and doctors ; many more were university
students. The average age of the refugees was less than
25 years.

VI

Assistance Abroad

IV

Assimilation

Supplementing the work of the initial resettlement,
the Committee took a series of steps to assist in a satis-
factory permanent assimilation of these refugees into
our economy and society. This has proceeded well.
Governors' committees to co-ordinate refugee relief exist
in states which have received more than ninety percent
of these refugees. Mayor's committees with similar re-
sponsibilities are active in various large cities. Re-
settlement work on the national level is now largely
completed, and agencies exist in the states and localities
to carry on from here.

Last December and January the Committee also made
an independent survey of the situation in Austria. This
report proposed a policy and steps further to supple-
ment United States action in giving refugees asylum in
this country with increased efforts to assist on a major
scale in supplying better temporary care in Austria and
transportation to other countries which could give per-
manent a.sylum. The continuing leadership of the United
States in this significant program directed by the State
Department has, we believe, attracted far less attention
than its magnitude and importance in contributing to the
solution of the refugee problem deserve.

VII

Appreciation

So many organizations and individuals have contrib-
uted to this program it is impossible to list them all here.
To each of those of who.se work we know, we are
separately expressing our appreciation and that of free
men everywhere.

It has been an honor to serve under your leadership.
Respectfully submitted.

Lewis W. Douglas, Honorary Chairman,

Tract S. Voorhees, Chairman,

J. Lawton Collins, Vice Chairman and Director,

William Hallam Tuck, Vice Chairman,

Leo C. Beebe, Vice Chairman (Kilmer),

Alfred M. Gruenther,

Lewis M. Hoskins,

Mrs. John C. Hughes,

John A. Krout,

Moses A. Leavitt,

George Meant,

MsoR. Edward E. Swanstrom,

Charles P. Taft,

R. NoRRis Wilson,

William J. Donovan, Counsel.

May 14, 1957

U.S. Protests Travel Bans'lmposed
on Embassy Staff in U.S.S.R.

Education

Over 1,000 university students were among the refu-
gees. Aiuong these, a large proportion were pursuing
studies in areas of the sciences in which the United
States has critical personnel shortages. AVith generous
aid from several Foundation.s, the Committee helped in
setting up courses in basic English and Americanization
for these young people. We followed this with a pro-
gram designed to provide scholarships and maintenance
funds. Through action of the Committee an effective
team to direct this work has been created, and will con-
tinue to serve during the coming months.

June 17, 1957

Press release 285 dated May 13
Department Announcement

The American Embassy at Moscow on May 13
delivered to the Ministry of Foreign Affairs of
the Union of Soviet Socialist Republics a note
protesting restrictions imposed by Soviet authori-
ties on the travel of American Embassy personnel
in areas officially open to travel by foreigners in
the Soviet Union.

The note called upon the Ministry of Foreign

985

Affairs to inform the Embassy wliat steps the
Ministry was prepared to take to bring the travel
of American Embassy personnel in the U.S.S.R.
into conformity with the Ministry's own notes of
June and November 1953, as well as with the
treatment of members of the Soviet Embassy
traveling in the United States.^ The note reiter-
ated that, if the Soviet Union should conclude
that the international situation were such that se-
curity requirements enabled it to liberalize its reg-
ulations restricting the travel of U.S. citizens in
the Soviet Union, the U.S. Government would ui
turn be disposed to reconsider in the same spirit
its own security requirements.

Text of U.S. Embassy Note of May 13

No. 914

Tlie Embassy of the United States of America
presents its compliments to the Ministry of
Foreign Affairs of the Union of Soviet Socialist
Republics and refers to the Ministry's Notes No.
295/ pr of June 22, 1953 and No. 400/pr of Novem-
ber 12, 1953 governing the travel of foreigners in
the U.S.S.R. Reference is also made to the Note of
January 3, 1955 of the Department of State, de-
livered to the Soviet Embassy in Washington,
D.C., concerning travel in the United States by
Soviet citizens other than Soviet citizen officers
and employees of the Secretariat of the United
Nations.

Experience has shown that there is a discrep-
ancy between the application and enforcement
upon members of this Embassy of travel regula-
tions by the Soviet authorities and the applica-
tion and enforcement of travel regulations upon
members of the Soviet Embassy in Washington.
From the manner and means by which travel of
members of this Mission is regulated by the Soviet
authorities, it is evident that the restrictions im-
posed in the Soviet Notes of June and November
1953 are being exceeded and in effect result in far
more severe limitations upon travel of American
personnel than indicated in these official com-
munications of the Ministi-y. In this connection
the United States Government desires to draw to
the attention of the Soviet Govermnent the fol-
lowing.

' For text of U.S. note of Jan. 3, 19.5.5, outlining travel
regulations for Soviet citizens in the United States, to-
gether with texts of the Soviet notes of June 22, 19.53, and
Nov. 12, 1953, see Bulletin of Jan. 31, 1955, p. 193.

On more than 36 occasions since July 1, 1956,
Embassy officers have been prevented from visit-
ing areas of the U.S.S.R. open to travel by for-
eigners, according to the Ministry's notes of June
and November 1953, by declaration of such areas
as temporarily closed, by denial of travel facilities
or by otlier means. In contrast, on only two oc-
casions since July 1, 1956 have open areas, in ac-
cordance witli the Department of State's note of
January 3, 1955, been declared temporarily closed.
Both of these occasions occurred subsequent to the
inception of extraordinarily stringent restrictions
on the travel of foreigners in the Soviet Union in
March and April, 1957. The United States Gov-
ernment has never interposed obstacles to the free
use of travel facilities by Soviet personnel in the
United States.

Wlien members of this Embassy have visited
open Soviet cities in open areas, they have fre-
quently been prevented by roadblocks and other
forms of police action from moving freely about
the city or to its environs when these environs are
in open areas beyond the city limits. On the other
hand, the personnel of the Soviet Embassy in
Washington visiting open American cities in open
areas are permitted freedom of movement within
the city and are not prevented from touring
nearby open areas.

Wliereas members of the Embassy are often re-
quired to utilize a specific automobile route be-
tween cities in the Soviet Union and are not per-
mitted to schedule travel over other routes even
though in open areas, Soviet personnel in the
United States have not on any occasion since the
establishment of travel regulations by the United
States Government been required to revise their
proposed route when scheduling travel by auto-
mobile in open areas.

It is clear from the above that American mem-
bers of the Moscow Embassy are frequently
barred by Soviet administrative or other actions
from free travel to those areas which have been
officially announced as open to foreign travel in
the Ministry's own Notes. Moreover, the effect of
these actions has been to institute a discrepancy
between the treatment accorded American Mission
l^ersonnel desiring to travel in the U.S.S.R. and
the treatment of Soviet Embassy personnel trav-
eling in the United States.

In order that it may communicate to the
United States Government the Ministry's views,

986

Department of State Bulletin

tl\e Embassy requests to be informed what meas-
ures the Ministry is prepared to take to bring the
travel of Embassy personnel in the U.S.S.K. into
conformity with the Ministry's Notes of June
and November 1953 as well as with the treatment
of members of the Soviet Embassy travelins^ in
the United States. In this connection, the Em-
bassy wishes to refer once again to tlie note of
the Department of State of January 3, 1955,
which states that, if the Soviet Union sliould
conclude that the international situation were
such that security requirements enabled it to lib-
eralize its regulations restricting the travel of
United States citizens in the Soviet Union, the
United States Government would in turn be dis-
posed to reconsider in the same spirit its own se-
curity requirements.

INTERNATIONAL ORGANIZATIONS
AND CONFERENCES

Further Discussions on Suez Canal
in Security Council

Following are the texts of two statements made
in the V.N. Security Coicncil on May 21 hy Am-
bassador Henry Cabot Lodge. In his first state-
ment Mr. Lodge spoke as U.S. Representative to
the United Nations, in his second as President of
the Security Council.

FIRST STATEMENT BY MR. LODGE

U.S./U.N. press release 2675 dated May 22

In view of the importance of the Suez Canal
to the economic activity of the world, it is under-
standable that France should have desired further
discussions in the Security Council. In addition
to France's interest as a canal user, it is true that
her place here as a permanent member of the Se-
curity Council and her leading role in history in
the advancement of civilization and in the struggle
for human justice entitle her both to speak and
to be heard with respect.

In my statement in the Security Council of

April 26,^ I pointed out that "the Egyptian dec-
laration in its present form does not fully meet the
six requirements of the Security Council."

The principal shortcoming, in our view, is the
lack of provision for an organized system of co-
operation with the users of the canal. The lack
of such a provision has cast serious doubt among
the users regarding the system now put into effect
by the Egyptian Government.

There are also a number of other ways in which
the Egyptian declaration does not meet fully the
six requirements which I shall enumerate as
follows :

The Security Council has previously agreed that
the operation of the canal should be insulated from
the politics of any country. It is not clear from
the Egyptian de<;laration how the Egyptian Gov-
ernment in fact intends to assure that this re-
quirement will be implemented.

We note also that the manner of fixing tolls and
charges, according to the Security Council reso-
lution of 13 October, should be decided by agree-
ment between Egypt and the users. To meet this
requirement fully, we believe it is necessary that
provision be made to cover the manner in which
continuous cooperation with the users will be
assured.

We note also that the Egyptian Government has
not yet deposited its acceptance of the compulsory
jurisdiction of the International Court of Justice
in accordance with its statement of intention to
do so. Again at yesterday's meeting, the Repre-
sentative of Egypt reiterated his Government's
intention to take the steps necessary to accept the
International Court's jurisdiction. The United
States would be interested in knowing when these
steps will in fact be taken by the Egyptian
Government.

Moreover, further clarification regarding the
manner in which Egypt is proposing to give effect
to tlie arbitration provisions of its declaration
would be helpful.

Finally, the question of compensation of claims
to the Suez Canal Company is also a matter
which requires further clarification. It would be
helpful in this connection if the Egyptian Gov-
ernment could indicate more precisely than in its
declaration the method it has in mind for reach-
ing agreement on this important question.

' Bulletin of May 13, 1957, p. 775.

June J 7, J 957

987

I referred at our last session also to the prac-
tical necessity that there be confidence among the
users of the canal and that the arrangements be
such that governments and private concerns can
base their economic and business plans on the as-
sumption that there will in fact be free and non-
discriminatory use of the canal at all times by
ships of all nations.

In expressing our willingness to give the sys-
tem proposed by Egypt a trial I pointed out that
the confidence of the users will depend on the
manner in which the Egyptian declaration is car-
ried out in practice.

As I said on April 26, the United States re-
serves its final judgment regarding the system
proposed by the Egyptian Government in its dec-
laration of April 24. De facto acquiescence by
the United States must be provisional, and we re-
serve tlie riglit to express ourselves further on
this matter in the future.

The United States believes it would serve the in-
terests of Egypt, of its Arab neighbors, and of
the users if the doubts that have been expressed
could be dispelled by the Egyptian Government.
In the meantime, we believe the Council should
maintain its continued interest by remaining
seized of this important question.

That concludes my statement as Representative
of the United States.

SECOND STATEMENT BY MR. LODGE

D.S./U.N. press release 2676 dated May 22

If no other member desires recognition, the
present occupant of the chair would like to speak
for a moment as President of the Security Coun-
cil.

The Council has now completed a further dis-
cussion of the Suez Canal question. It is plain
that a clear majority of the members of the Coun-
cil are acutely aware of the responsibilities of the
United Nations with regard to this matter. This
is shown by tlie fact that the Council on October
13 adopted six requii-ements which should be met
in any Suez Canal settlement — and adopted them
unanimously.^ Tliere is the further fact that the
Council has discussed this problem several times,
and that it has remained seized of the issue is fur-
ther evidence of the Council's interest and
concern.

'Ibid., Oct. 22, 1950, p. 010.
988

It is, of course, clear that certain views have
also been expressed to the effect that the Egyptian
declaration and the present operation of the Suez
Canal do adequately implement the six require-
ments of the Council. But the majority of the
members are of the opinion that these require-
ments have not yet been met, that there are un-
certainties that require clarification, and that even
as expressed by the Egyptian Representative yes-
terday the Egyptian position remains to be com-
pleted.

It has been observed several times that the
Egyptian Government has not yet deposited its
acceptance of the compulsory jurisdiction of the
International Court of Justice in accordance with
its statement of intention to do so. It has been
a month or more since the Egyptian Government
made this intention known, and again at yester-
day's meeting the Representative of Egypt reiter-
ated his Government's intention to take the steps
necessary to accept the International Court's ju-
risdiction. It is natural in these circumstances
that members should wish to know when such
steps will in fact be taken.

Questions have been raised about the nature of
the obligations which the Egj'ptian Government
recognizes under the declaration, the manner in
which they were put forward, and whether the
Egyptian Government considers that it can
amend or withdraw them arbitrarily at its own
will.

In this connection, reference has been made to
the provisional nature of the Egyptian declara-
tion. As the Philippine Representative well
said : "Most of the members qualified their ac-
quiescence as provisional rather than final." The
Philippine Representative also said : "The United
Nations must continue to seek a final solution,
while giving the interim arrangements a chance
to work out without injury to the interests of any
of the nations involved."

Doubts have been expressed about the lack of
provision for organized user cooperation in the
declaration, and it has been pointed out that fur-
ther clarification is needed on the participation of
the users implicit in various paragraphs of it,
particularly those relating to arbitration and the
fixing of tolls.

Members have pointed out that the obligations
which Egypt appears to have assumed require
further initiative from Egypt if those obligations
are to be carried out.

Department of State Bulletin

Questions on compensation of claims in connec-
tion with tlie nationalization of the Suez Canal
Company and concerning the method of reaching
agreement have also been raised. Here again it
has been pointed out that further initiative by
Egypt is required.

Concern continues to prevail about the insula-
tion of the canal from the politics of any nation,
and this concern is inherent in all of the doubts
expressed here about the adequacy of the Egyp-
tian declaration.

These comments reflect continuing doubts, on
the part of a number of members, regarding the
Suez Canal system now put into effect by the
Egyptian Government and about which clarifica-
tion by Egypt is desired.

The Egyptian Government . will presumably
wish as soon as possible to examine these points
carefully and to consider the concrete steps it can
take to remove the doubts which have arisen.
Member governments will undoubtedly be guided
in their diplomatic action and users will be guided
in their practical actions by the views that have
been expressed here today and by the Egyptian
response to the questions which have been raised
here. In the meantime the Council will remain
seized of the question and will be in a position to
resume its deliberations to hear further from the
Representative of Egypt or when other develop-
ments make it desirable.

Representative on Latin American
Economic Commission

The Senate on May 23 confirmed Harold M.
Randall to be the representative of the United
States of America to the seventh session of the
Economic Commission for Latin America of the
Economic and Social Council of the United
Nations.

U.S. Delegations to
International Conferences

Baghdad Pact Council and Military Committee

The Department of State announced on May 29
(press release 321) that the U.S. observer delega-
tion to the third Ministerial Council session of the
Baghdad Pact, to be held at Karachi, Pakistan,

beginning June 3, will be led by Deputy Under
Secretary of State Loy W. Henderson. Mr.
Henderson also headed the ob.server delegation to
the second Council session at Tehran in April 1956.

Although the United States has not adhered to
the pact, it participates in the work of several of
the major committees, notably the Ec-onomic and
the Countcrsubversion Committees. Moreover, at
the invitation of the members, the United States
has maintained continuing j)olitical and military
liaison with the organization and has demon-
strated in many ways its support for achievement
of the pact's objectives in meeting threats of
international communism.

Other members of the U.S. observer delegation
are:

Gen. Nathan F. Twining, senior military adviser to the

delegation. Chief of Staff, U.S. Air Force
Waldemar J. OaUmau, U.S. Ambassador to Iraq, U.S.

Observer at sessions of the Council Deputies
Arthur Z. Gardiner, Charge d'Afl'aires, U.S. Embassy,

Karachi
Johu O. r.ell, Director, U.S. Operations Mission in

Paliistan
Geoffrey W. Lewis, Political Affairs Counselor, U.S. Bm-

ba.s.sy, Karachi
Stuart Rockwell, Deputy Director, Office of Near Eastern

Affairs, Department of State
Allan L. Swim, Public .\ffairs Officer, U.S. Embassy,

Karachi
George A. Mann, Public Affairs Officer, U.S. Embassy,

Baghdad
Robert C. F. Gordon, Second Secretary, U.S. Embassy,

Baghdad
Morris Dembo, Second Secretary, U.S. Embassy, Karachi

In March 1957 the United States indicated that
it would be prepared to join the Military Com-
mittee of tlie organization upon invitation. The
members of the pact have indicated their inten-
tion to extend such an invitation, and this action
is one of the first items on the agenda of the
Council session.

The United States will be represented at the
meeting of the Military Committee at Karachi on
June 3 by General Twining as Senior U.S. Mili-
tary Representative. Other members of the U.S.
delegation to the Military Committee meeting
will be :

Rear Adm. Charles K. Bergin, U.S. Navy, Office of the

Assistant Secretary of Defense for International

Security Affairs
Brig. Gen. Orrin L. Grover, U.S. Air Force, Office of the

Joint Chiefs of Staff
Brig. Gen. Forrest Caraway, U.S. Army, Office of the

.loint Chiefs of Staff

June 17, 1957

989

Col. Stuart M. Alley, U.S. Army, Senior U.S. Military
Officer, Baghdad Pact Military Liaison Group,
Baghdad

U.N. Refugee Fund

The Department of State announced on May
29 (press release 322) the members of the U.S.
delegations to meetings of the U.N. Refugee Fund
(Unref), to be held at Geneva, May 31- June 7,
1957.

John W. Hanes, Jr., Deputy Assistant Secre-
tary of State for Intei'national Organization Af-
fairs, will be the U.S. Representative to the 5th
session of the Unref Executive Committee, which
will meet June 3-7. Robert S. McCollum, Dep-
uty Administrator for Refugee Programs, Bu-
reau of Security and Consular Affairs, will be
the Alternate U.S. Representative. Their ad-
visers will be David H. Popper, Deputy U.S.
Representative for International Organizations
at Geneva, and Henry F. Nichol, Conference Offi-
cer at Geneva.

Mr. Popper will be the U.S. Representative to
the 5th session of the Unref Standing Program
Subcommittee, which will meet May 31-June 3.
Mr. Nichol will serve as his adviser.

TREATY INFORMATION

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency.
Done at New York October 26, 1956.'
Ratification deposited: Afghanistan, May 31, 1957.

Fisheries

Protocol amending the international convention for the

northwest Atlantic fisheries of February 8, 1949 (TIAS
20S9). Done at Washington June 25, 1956.'
Ratification deposited: United States, May 22, 1957.

Weather

Convention of the World Meteorological Organization.

Done at Washington October 11, 1947. Entered into

force March 23, 19.50. TIAS 2052.

Notification by France reyarding Soar: From January
1, 1957, on, France no longer assumes responsibility
regarding application of the convention to the Saar.'

Whaling

Protocol amending the international whaling convention
of 1946 (TIAS 1849). Done at Washington November
19, 1956."
Ratification deposited: Japan, May 24, 1957.

BILATERAL

Australia

Agreement for cooperation concerning civil uses of atomic
energy. Signed at Washington June 22, 1956.
Entered into force: May 28, 1957 (date on which each
Government received from the other written notifi-
cation that it had complied with statutory and con-
stitutional requirements).

Ecuador

Research reactor agreement concerning civil uses of atom-
ic energy. Signed at Washington May 31, 1957. En-
ters into force on date on which each Government re-
ceives from the other written notification that it has
complied with statutory and constitutional require-
ments.

Germany

Agreement relating to the loan of certain naval vessels
or small craft by the United States to the Federal Re-
public of Germany. Efl'ected 1>.v exchanvre of notes at
Bonn April 30 and May 1, 1957. Entered into force
May 1, 1957.

DEPARTMENT AND FOREIGN SERVICE

Designations

Francis J. Colligan as Special Assistant to the Assistant
Secretary for Public Affairs, effective May 24.

' Not in force.

"The Sa.nr was incorporated into the Federal Republic
of Germany on Jan. 1, 1957, by the terms of the Franco-
German treaty of Oct. 27, 1956.

990

Department of State Bulletin

June 17, 1957

Index

Vol. XXXVI, No. 938

American Republics. Representative on Latin
American Economic Commission 989

China. Secretary Dulles' News Conference of
May 29 961

China, Communist

Secretary Dulles' News Conference of May 29 . . 961

U.S. To Continue Total Embargo on Trade With
Communist China 967

Congress, The

The American Doctrine and the Mutual Security

Program (Richards) 969

Visit of Chancellor Adenauer of the Federal Repub-
lic of Germany (texts of addresses before House
of Representatives and Senate) 955

Department and Foreign Service

Designations (Colligan) 990

U.S. Protests Travel Bans Imposed on Embassy

Staff in U.S.S.K 985

Disarmament. Secretary Dulles' News Conference

of May 29 961

Economic Affairs

Representative on Latin American Economic Com-
mission 989

U.S. To Continue Total Embargo on Trade AVith

Communist China 967

Egypt. Further Discussions on Suez Canal in Se-
curity Council (Lodge) 987

Germany

Berlin and Soviet Methods in Germany (Eleanor
Dulles) 978

Secretary Dulles' News Conference of May 29 . . 9C1

Visit of Chancellor Adenauer (texts of commu-
nique and joint declaration, addresses before
Hou.se of Representatives and Senate, statement
by Acting Secretary Herter, members of ofh-
cial party 955

Hungary

Committee for Hungarian Relief Submits Final Re-
port (text of report) 984

United States Asks Departure of Hungarian

Attach^ 983

International Organizations and Conferences

Baghdad Pact Council and Military Committee

(delegation) 989

U.N. Refugee Fund (delegation) 990

Israel. Israel Supports Purpose of U.S. Middle

East Policy (text of communique) 968

Japan. Secretary Dulles' News Conference of

May 29 961

Middle East

The American Doctrine and the Mutual Security

Program (Richards) 969

Further Discussions on Suez Canal in Security
Council (Lodge) 987

Israel Supports Purpose of U.S. Middle East Policy

(text of communique) 968

The Middle East — Fundamentals of American Pol-
icy (Rountree) 973

Mutual Security. The American Doctrine and the

Mutual Security Program (Richards) .... 969

Presidential Documents. Visit of Chancellor Ade-
nauer of the Federal Republic of Germany (texts
of communique and joint declaration) .... 905

Refugees. Committee for Hungarian Relief Sub-
mits Pinal Report (text of report) 984

Treaty Information. Current Actions 990

U.S.S.R.

Berlin and Soviet Methods in Germany (Eleanor

Dulles) 978

U.S. Protests Travel Bans Imposed on Embassy

Staff in U.S.S.R 985

United Kingdom. U.S. To Continue Total Embargo

on Trade With Communist China 967

United Nations

Further Discussions on Suez Canal In Security

Council (Lodge) 987

Representative on Latin American Economic Com-
mission 989

U.N. Refugee Fund (delegation) 990

name Index

Adenauer, Konrad 955

Colligan, Francis J 990

Dulles, Eleanor 978

Dulles, Secretary 961

Eisenhower, President 955

Herter, Christian A 960

Lodge, Henry Cabot 987

Meszaros, Karoly 983

Randall, Harold M 989

Richards, .James P 969

Rountree, William M 973

-
Check List of Department of State

Press Releases: IViay 27-June 2

Releases

may be obtained from the News Di-

visior

1, Department of State, Washington 25, D.C.

Press releases issued prior to May 27 which ap- |

pear

in this

issue of the Bulletin are Nos. 285 of

May 13, 292 of May 16, 307 of May 21, 311 of May

22, and 314 of May 24.

No.

Date

Subject

316

5/27

Richards: Senate Foreign Relations
Committee.

•317

5/27

Educational exchange.

*318

5/27

Langley nominated Ambassador to
Pakistan.

•319

.5/28

O'Connor sworn in.

•320

5/28

Amended program for Adenauer visit.

321

.5/29

Delegation to Baghdad Pact Council
(rewrite).

322

5/29

Delegation to U.N. Refugee Fund (re-
write).

323

5/29

Dulles : news conference.

t324

5/29

Statement regarding Gerald Murphy.

325

5/29

Herter : departure of Chancellor Ade-
nauer.

•326

5/29

Becker nominated Legal Adviser.

327

5/30

Note to Hungary requesting departure
of air attach^.

328

.5/30

Statement on China trade controls.

t329

.5/31

Delegation to Unesco Executive Board
(rewrite).

•330

5/31

Educational exchange.

t331

5/31

Delegation to Ilo conference (re-
write).

t332

5/31

Atoms-for-peace agreement with Ec-
uador.

t333

5/31

Eleanor Dulles: "Education — Commu-
nist Style, American Style."

t334

5/31

Dillon : N.J. Advertising Club.

•Not printed. |

tHeld for

a later issue of the Bult.etin.

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However, it took 6 years and two committees, with the new Nation's
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The seal, as the symbol of sovereignty, is impressed upon certain
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one or another of its official uses as decoration.

The Seal of the United States^ a new publication, describes the his-
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Vol. XXXVI, No. 939

June 24, 1957

AMERICA'S RESPONSIBILITIES IN THE FAR EAST

• by Assistant Secretary Robertson 995

THE PARADOX OF FOREIGN ECONOMIC POLICY •

by Assistant Secretary Kalijarvi 1009

THE DEPARTiMENT OF STATE AND THE U.S.

MERCHANT MARINE • by Assistant Secretary Hill . 1017

DISAPPEARANCE OF U.S. PILOT IN DOMINICAN

REPUBLIC • Statement by Acting Assistant Secretary
Rubottom and Text of U.S. Note of May 2 1025

PROPOSED LEGISLATION FOR PAYMENT TO
DENiAIARK IN CONNECTION WITH SHIPS

REQUISITIONED IN WORLD WAR II • Statement

by Under Secretary Herler 1020

ECONOMIC NEGOTIATIONS BETWEEN THE

UNITED STATES AND POLAND 1003

For index see inside back cover

Boston Public Library
Supcrint.-n ' -• "f Oocuroents

JUL 1 6 1957

THE DEPARTMENT OF STATE

Vol. XXXVr, No. 939 • Publication 6507
June 24, 1957

For sale by the Superintendent ol Documents

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Note: Contents of this publlcatiou arc not
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OF State Bulletin as the source ■will bo
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The Department of State BULLETIN,
a weekly publication issued by the
Public Services Division, provides the
public and interested agencies of
the Government with information on
developments in the field of foreign
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America's Responsibilities in the Far East

hy Walter S. Robertson

Assistant Secretaiy for Far Eastern Affairs ^

It is impossible to look at a youthful audience
like this one without feeling hopeful. And per-
haps there are very good gi-ounds for hope. At
least you are going to start out knowing more than
your predecessors did about some very important
things. When the generation which is now at the
controls came of age, th& American people con-
sidered their continent as set almost wholly apart
from the Old World and from its interminable
diplomatic maneuvers, national jealousies, and
fratricidal wars. Even Woodrow Wilson, whom
we recall as a great internationalist, did not once
refer to foreign affairs in his first inaugural ad-
dress. It required two world wars and a frightful
toll in blood and in treasure to make your gi-and-
fathers and fathers understand that' the United
States had veiy great responsibilities in the world
as a whole. It is easy for you to understand this;
you have grown up with that knowledge. It would
probably be difficult for you to imagine otherwise.
The whys and wherefores of responsibilities are
difficult to define. About all we can say of them
is this— responsibilities seem to be apportioned
among men and among nations in strict accordance
with their ability to bear them. You can say that
Providence has arranged it so or that it is a matter
of definition. Our capabilities and our responsi-
bilities are always in exact balance. It is like
double entry bookkeeping— every time you acquire
an asset, you acquire a matching liability. We
may say that all human progress is the result of
men devoting their capabilities to the discharge
of their responsibilities. All the needless strife,
bloodshed, and suffering that has made human

' Address made at commencement exercises at Duke Uni-
versity, Durham, N. C, on June 3 (press release 336).

June 24, 1957

history to so considerable an extent a thing of
horror have resulted from men's failure to do just
that— from their inability to perceive, and their
predilection for ignoring, their responsibilities.
Tlie willingness to face up to responsibility is
the test of maturity among men and among
nations. The United States is facing this test in
an acute form in the world today. And you on
this, your graduation day, are acquiring, as adult
Americans, opportmiities and responsibilities
probably greater than those that have ever fallen
to the lot of any people in history.

Charles Dickens, in what is perhaps his most
frequently quoted passage, said of a period almost
200 years ago : "It was the best of times, it was the
worst of times, it was the age of wisdom, it was
the age of foolishness ... it was the season of
Light, it was the season of Darkness, it was the
spring of hope, it was the winter of despair, we
had everything before us, we had nothing before
us. . . ." It M-as, he concluded, a period very like
the one in which he was then living 100 years later.
In the face of Dickens' assertion that all ages
were alike in combining the best good and the
worst evil, the brightest promises and the direst
threats, and that each age thinks itself unique in
such a paradox, one hesitates to claim this charac-
ter especially for one's own. Yet Dickens him-
self, as much as anyone, would surely be over-
awed by the extremity of the alternatives that
confront us in the middle of the 20th century.
Scientific discovery and invention are continually
opening up new possibilities, and they are doing
so at a rate of progress that seems to be constantly
accelerating. This progress is not only rapid; it
appears to be gathering speed. Each year we 'see
ever greater possibilities more clearly before us.

995

On the one hand, we can perceive ahead of us
an age of plenty in which poverty and disease will
finally have been conquered; we shall have come
to control our environment; our horizons shall
have been extended deep into the heart of matter
and far out into space. On the other hand, we
can perceive as an equally jilausible possibility
the destruction of civilization — conceivably life
itself — by atomic devastation and the poisoning
of the atmosphere or, if that is avoided, possibly
the triumph of a barbarism of the spirit welling
up in modern totalitarian form that could over-
whelm our civilization as Rome was overwhelmed
by a more innocent barbarism, ushering in a new
Dark Ages.

^Vliether, as Dickens put it, we are "all going
direct to Heaven" or are "all going direct the other
way" is likely to be decided primarily by the way
the United States exercises the leadership that has
inescapably come to rest upon it. We have stanch
and powerful partners in the trials we are having
to meet and shall go on having to meet — the vast
majority of nations that share our values . Indeed,
we have as a potential ally the mass of mankind,
whose hopes and longings depend upon us for
their fulfillment more than upon anyone else.

Recent dramatic events in the great ideological
struggle through which the world is now passing
have been centered in the Middle East. There is
a reason for this and an equally cogent reason
why, from time to time, the backdrop of world
drama will shift as international communism con-
tinues to probe for weak spots in the free world's
armor. As the Far East is the area of my official
responsibilities, it is there that I propose to ask
your attention while I endeavor to develop the
theme of America's resjDonsibilities — responsibili-
ties which on this day become your own.

Two Forces in the Far East

For the sake of our discussion today I shall ask
you to visualize the Far East as a place whei'e
two forces are in collision, like two air masses of
opposing character that meet in what I believe is
called an occluded front. This kind of front — if
I am not mistaken — is characterized by rain, hail,
sleet, lightning, and thunder.

In the Far East the front reaches from Japan
and Korea thi-f)ugli Soutlieast Asia, from whence
it extends to Kashmir and Afghanistan. On al-
most all parts of its 7,00()-mile length there are
turbulences of one kind or another.

At the risk of overdoing our image, we might
say that the warm air mass represents the re-
surgence of Asia — the movement of the Asians
to throw otF foreign rule and foreign domination ;
to catch up with the 20th century; to win recog-
nition and respect for their importance; to real-
ize their capabilities; to achieve tolerable condi-
tions of life for their oppressed, ill-nourished,
illiterate fellow beings; and, above all, to achieve
the right to be themselves and to be answerable
only to themselves. The other air mass, pushing
its cold wedges down from the north, represents
the force of aggi'essive, expansionist world com-
munism, the object of which is antithetical to the
object of the Asian revolution. If successful, it
would bring the whole vast Asian world into the
icy grasp of an alien tyranny.

The results of this collision will influence the
climate of the world for as far into the future as
we can see. Up to now the cold air mass, relj'ing
at times upon assault and at others upon insinua-
tion, has overspread mainland China, Tibet, north
Korea, north Viet-Nam, and north Laos, and has
established pockets out ahead of the front in many
areas. It has also had signal reverees. It over-
reached itself in Korea and was thrust back at
heavy costs to the Koreans and to us, but at even
heavier costs to itself. Its bids for control in
Formosa and most of Southeast Asia have so far
been frustrated.

Far Eastern policy has been a subject of par-
ticular controversy in the United States. In cer-
tain camps it is today. However, I believe that
the vast majority of our countrymen is now pretty
generally of one mind in its appraisal of the situ-
ation in the Far East and its meaning for us. At
long last I believe it is generally recognized that
the Communists are dedicated to the proposition
that in the long run it must be we or they, the
free world or their world.

This position was made clear long ago by Ixmin.
He wrote: "We are living not merely in a state
but in a system of states and the existence of the
Soviet Republic side by side with imperialist
states for a long time is unthinkable. One or the
other must triumph in the end. And before that
end supervenes, a series of frightful collisions be-
tween the Soviet Republic and the bourgeois states
will be inevitable.''

And I believe we also recognize that, having _
l)een frustrated in Europe by the Marshall plan
and the North Atlantic Treaty Organization, the

996

Departmenf of Stafe Bulletin

Communists have been giving major attention to
the Asian worUl. from Japan westward all the
way to the Near P>a.st. The situation in tills vast
area has offered them distinct advantages. WHiat
are these advant-ages? Broadly speaking they
are twofold.

Communist Advantages in Asia

On the phy.sii-al side there is the Communists'
possession of the great base of operations otl'eretl
by Russia and mainland China, to which the rest
of Asia is geogi-aphically peripheral. Just as the
position Russia achieved in Manclniria at the end
of AVorld War II gave the Communists an invalu-
able base for o]>erations against China pi'oper, so
the addition of mainland China gives them an in-
valuable base for operations against the rest of
Asia. It has given them, moreover, an army of
perhaps two and a half million men and exi)osed
the Chinese minorities in Southeast Asia to Com-
munist penetration and intimidation. These
minorities number between 10 and 12 million or
more and play a key role in the economic life of
the countries in which they live.

On the psj'chological side Asia has otFered the
Communists the opportunities that an absolutist,
ruthless, highly disciplined, self -sure movement
always finds in a situation of widespread disorder,
of insecurity, doubt, confusion, discontent, and
suffering. But the greatest psychological advan-
tage the Communists have reaped arises from the
fact that the Asians had traditionally looked upon
Western Europe as the outstanding obstacle in the
way of their revolution. It was European domina-
tion and European privilege that in the eyes of
the Asians blocked the avenues of advance to a
more rewarding and self-respecting future. By
contrast the Communists were in their eyes fellow
revolutionaries and allies in the struggle with
Western imperialism. In one sense it has been
asking a great deal of the Asians to expect that
thej' woidd be able, in the short period since World
War II, to see the West as an ally of their revolu-
tion and Communist imperialism as the outstand-
ing threat to their new independence. Perhaps
the remarkable thing is not that many Asians have
been unable to readjust almost overnight to the
radically altered circumstances of the present but
that so man}' have done so.

The Communists, although absolutely fixed in
their thinking with respect to ultimate objectives,
are notorious improvisers in strategy and tactics.

For this reason a discussion of Communist blue-
jirints of action is therefore generally fruitless.
We are justified in surmising, however, tiiat what
the Communists are now aiming at is to utilize
their assets in Chiiui to gain conti-ol of Southeast
Asia with its strategic resources and its i-ice sur-
pluses on which Japan depends. Tliey would then
dominate Japan's natural trading ai'ea and be able
to dictate the terms on which the Japanese could
make a livelihood. Completing the consolidation
of their control over the whole Asian world, with
its manpower, resources, and industry — Japan's
industrial capacity is now 50 percent of that of the
Soviet Union — they would be able to turn upon
the Middle P^ast and AVestern Europe with great
strength and formidable prestige. This latter
element — the factor of psychological moinentum — •
is one that we should never underestimate. Suc-
cess, as Hamlet said of appetite, grows with what
it feeds on, and resistance which could stand off
10 or '20 or 100 divisions may crumble before a
name.

It is well to recall I.ienin's blueprint for world
domination: "First we will take Eastern Europe,
then the masses of Asia. Then we will surround
America, the last citadel of capitalism. We shall
not have to attack. She will fall into our lap like
an overripe fruit." His blueprint has been fol-
lowed with clocklike precision by his disciples.
Starting from zero in our genei-ation, the inter-
national Communists now hold in a grip of ruth-
less power 16 nations, 900 million people — a
circumstance recently described by the Secretary
of State as "the most fi'ightening fact history
records."

Holding Asia

Faced with these ugly facts, we have become
increasingly aware that Asia must be held against
the pressures of all kinds the Communists are
bringing to bear against it. However, it is only
the Asians who can hold Asia. That statement
does not lose force if we go on to recognize, as
we have recognized, tluit the Asians need our
help. This help we have been giving and are
continuing to give to those who are seeking to
preserve their national independence. First, we
have been helping witli the military defense of
Asia. Our major assistance has gone to those
countries under the most pressing threat. We
have contriI)uted substantially to building up
effective military forces in the Republic of Korea,

June 24, J 957

997

Taiwan, and the Kepublic of Viet-Nam. In our
view those forces serve to defend not only those
three areas but the whole of free Asia. The pres-
ence of competent military forces anywhere on
our side of the Iron Curtain in the Far East must
make the Conomunists that much more reluctant
to attack overtly anywhere else. The military
forces of the Republic of Korea, the Republic of
China, and the Republic of Viet-Nam are de-
fending the countries of Southeast Asia, as well
as their own countries, simply by maintaining
their present impressive capabilities — even if they
never budge from their present positions or fire
a shot. The long-range American striking forces
called for by our present strategy of defense are
also calculated to deter aggression by the mere
fact of their existence.

Now it is essential, of course, for the Asians
to have something to fight with, but it is even
more important for them to have something to
fight for — or rather for them to realize how much
they have to fight for, including the chance to
achieve something better. However, it is much
easier for us to provide weapons, however costly
the operation may be, than to provide conviction
and faith.

You may ask whether the Asians do not rec-
ognize that any people menaced by communism
have everything to fight for, above all for their
independence. My answer would be that the
Asians are passionately attached to their inde-
pendence. I would further submit that the vast
majority of Asians are profoundly opposed to
what communism consists of. I would even haz-
ard the guess that nowhere in Asia, including
China and Viet-Nam, could Communists, running
as such, poll as heavy a percentage of the vote in
a fair election today as they have in parts of the
West.

But I would also point out that, while a grow-
ing knowledge of realities m the Communist
world has gone a long way in disabusing the
Asians — as it has the rest of the world — of illu-
sions about communism, there are still many
Asians who do not know what communism is and
who accept its pretensions uncritically, deriving
no small satisfaction from the discomfiture the
Communists apparently cause the West. For
those Asians who have had experience of West-
ern overlords and of feudal overlords of their
own but who have seen nothing of Communist

tyranny, it is not unnatural to think of commu-
nism in terms of economic and social radicalism —
which is appealing to them — rather than in terms
of Soviet Russian and Communist Chinese reac-
tionary imperialism. At the same time, most of
the population of Asia is living in circumstances
that even by Asia's own pathetic standards are
desperate.

This means that the Asian revolution, insofar
as it is a nationalist revolution, is today living on
borrowed time. An improvement has got to be
sliown in the conditions in which the vast majority
of Asians live. Such an improvement cannot
be taken for granted. Human beings cannot Ise
expected to submit to starvation because they are
told that communism would be worse.

U.S. Economic Aid

T^liat the United States is trying to do in the
economic field is to extend aid and technical assist-
ance where it will count for the most, where the
economic and social structures of the new Asian
nations are weakest. We cannot give aid of a mag-
nitude that would industrialize Asia in a matter
of years or cause dramatic changes in the stand-
ards of living of 700 million people. But we can
help bring about specific improvements — say in
transportation systems, in small industries, in
public administration, in agricultural methods, in
the diversification of production. We can help
to create a constructive atmosphere, an atmosphere
of hope, a climate of confidence in free Asia's pres-
ent nationalist, moderate leadership. Fui'ther, we
can take the lead in reducing those arbitrary bar-
riers to the wider development of Asia's resources
and the world's resources — h\g\\ tariffs, quota
systems, and the like — by which a nation seeks to
live in a world apart when the survival of all de-
pends on common effort.

Any illusions we may have that the Communists
would genuinely like to reestablish peace and re-
lieve sources of friction on any terms other than
the progressive destruction of our world should
be dispelled by a knowledge of the vilification and
abuse that the Communists are constantly pour-
ing upon us. •

It is important for us to keep constantly in
mind the fact that the Asians are continuously
exposed to this unceasing barrage of anti-Ameri-
can proi)aganda. The objective, of course, is to
picture the United States as the archenemy of

998

Department of State Bulletin

everything the Asians are struggling for. Actu-
all}', the United States emei'ges from Communist
propaganda as having all the essential features
of Intel-national connnunism. The chief eti'ect is
probably not so much to win friends for com-
munism as to strengthen the view of some Asians
that the two sides in the cold war are equally over-
bearing and equally wrong and that therefore
they themselves can stand aside from the conflict.
This is a comforting notion, bringing release from
all responsibility.

Neutralism

I alwaj's have two reactions to neutralist views.
First, I wonder how we can make clearer the
origins of the cold war and the reasons for pro-
grams of American foreign aid. It is so clear to
us that the United States has come into conflict
with the Communists not because we have any
desire to extend our influence beyond our borders,
not because we have been immediately and di-
rectly threatened by Communist imperialism, but
because we have responded to requests for assist-
ance from those nations which, neighboring on
the Communist world, have been immediately
threatened. It is hard to see how the facts could
be made plainer. My second feeling is one of
curiosity as to whether the neutralists ever stop
to wonder what would happen to them if we fol-
lowed tlieir example and also stood back from the
conflict between Communist imperialism and the
rest of the free world and allowed nature to take
its course.

However, we must not be too discouraged by
neutralist sentiment in Asia. We must remember
what our objective is. It is not to achieve popu-
larity or win admirers. Our purpose is to see
that the independence of the Asian nations is pre-
served and that they are able to stand on their own
feet, iloreover, it would not be very becoming to
us to be too shocked by the phenomenon of neutral-
ism. We must remember that for the first century
and a half after our own achievement of inde-
pendence our foreign policy was devoted to keep-
ing out of the afi'airs of the Old World and keep-
ing the Old World out of the affairs of the New.

Fortunately for us, during our first century we
were geographically remote from the theaters of
major conflict^ — unlike the Asians today — and
mercifully were threatened with no such world-
wide conspiracy as the Communist International.

And further, the security of the Western Hemi-
sphere had an effective defender in the form of the
British Navj'. Nevertheless, we were too long in
discovering that in the 20th century no nation is
geographically remote. We learned in 1917 and
again in 19-41 that for nations today the cost of
escaping involvement in a world at peace is apt to
be involvement in a world at war from which they
cannot escape.

It is to avoid a repetition of two world wars that
we are now striving to help develop in the free
world. East and West, a strength sufficient to stay
the aggressor's hand. It is to avoid having once
again to fight to the death for our survival m cir-
cumstances of the aggressor's clioosing — in a war
that this time we could not see the end of. It is
our responsibility to contribute all we can to the
creation of that strength because without us it
cannot be created. It remains our responsibility
no matter what anyone says about us — enemy,
friend, or neutralist. And we may be sure that
the more we succeed in acquitting ourselves of
this responsibility, the more vituperations we shall
have from our enemies — who will see their oppor-
tunities fading — the more frankly our friends will
speak their minds, and the sharper the criticism
will be from some of the neutralists. That will
all be evidence that we are achieving our ends.

We are fond of saying in speeches that we must
help in the defense of freedom everywhere because
it is in our self-interest to do so, because, so long as
freedom is in danger anywhere, our own is not
safe. That is quite true. I find it tiresome, how-
ever, and unworthy of us to invoke exclusively
our OAvn self-interest. Our responsibilities are
not primarily to ourselves but to the past and to
the future. Our freedom was bought not at
Yorktown and Midway alone but on a thousand
battlefields from Thermopylae to the Marne, Lake
Ladoga, and the skies of Britain. Our material
possessions go back to Archimedes, the Arab alge-
braists, and Galileo. We Americans, unlike the
Russians, did not invent everything. Much of the
inspiration of our art and our religion is to be
found among the ancient peoples of the East.

As we look about us at our heritage of incredible
blessings, spiritual and material, and at the mag-
nificent continent we inhabit, we must continually
remind ourselves how much we owe not only to
our own efforts but to our forefathers, to other
peoples, and to Providence. This is a debt we can

Jyne 24, 7957

999

I'epay only to the fellow inhabitants of our world
and to the future. For my own part I feel that
nowhere more than in Asia, where so many are
struggling against such heavy odds for one hun-
dredth part of the i-ewards we take for granted,
will assistance from us be productive of important
returns for all mankind.

All nations have immense responsibilities today.
As the structure of civilization grows more com-
plicated and integrated and more charged with
explosives, its tolerance of mistakes grows less
and less. A reckless policy by a smgle nation,
even a small one, can do far more damage today
than it would have done 50 years ago. The lati-
tude we can allow ourselves is particularly limited
because we carry so much weight. Our I'espon-
sibilities are greater than anyone's because we
have more to give. Other nations when hard
pressed and in desperate need of support can look
behind them and find us there. And the postwar
years have shown that other peoples in their ex-
tremity do not look to us in vain. But behind us
there is no one. It all stops with us. If we fail,
there will be no one to fill the breach. That sug-
gests the nature of our responsibilities.

And with one further word on the general sub-
ject of responsibilities I shall end : The only way
to get rid of responsibilities is to discharge them.

Secretaries of State and Defense
Review Girard Case

Following is a joint stateinent of Secretary of
State John Foster Dulles and Secretary of De-
fense Charles E. Wilson, issued by the Depart-
ment of Defense on June If..

The case of U.S. Army Specialist 3rd Class
William S. Girai'd has far-reaching implications,
involving as it does the good faith of the United
States in carrying out a joint decision reached un-
der pi-ocedures established by treaty and agree-
ment with Japan.

The case involves actions by Girard which
caused the death of Naka Sakai, a Japanese
woman, on January 30, 1957. The issue arose as
to whether or not Girard sliould be tried by U.S.
court-martial or by a .Iai)anese court. After care-
ful deliberation in the Joint U.S.-Japan Commit-
tee established by the two Governments pursu-
ant to treaty arrangements, the U.S. representa-
tive on this Committee was authorized to agree.

and on May 16, 1957, did agree, that the United
States would not exercise its asserted right of
primary jurisdiction in this case. In view of this
completed action, attempting to prolong the dis-
pute over the jurisdictional issue would create a
situation which could basically affect U.S. rela-
tions not only with Japan, but also with many
other nations.

For these reasons, Secretary of State John
Foster Dulles and Secretary of Defense Charles
E. Wilson have carefully reviewed all the avail-
able facts in the case. They have now concluded
that the Joint Committee's agreement that Girard
be tried in the courts of Japan was reached in full
accord with procedures established by the Treaty
and Agreement, and that in order to preserve the
integrity of the pledges of the United States, this
determination by the Joint Committee must be
carried out.

The Secretaries' review disclosed the following :

The incident occurred in a maneuver area pro-
vided by the Japanese Government for part-time
use of United States forces. The Japanese De-
fense Force uses the same area about 40% of the
time. When the area is not in use by either the
United States or Japanese armed forces, Japa-
nese civilians are permitted to farm or otherwise
use the area.

Efforts to keep civilians away from the area
during such militai-y exercises have not proved
eifective. In this particular case, red boundary
flags were, as customary, erected as a warning
to civilians to keep off, and local authorities
were notified of the proposed exercises. But, as
was frequently the case, a number of Japanese
civilians were in the area gathering empty brass
cartridge cases at the time of the incident. These
civilians had created such a risk of injury to them-
selves in the morning exercises when live anununi-
tion was used that the American officer in charge
withdrew live ammunition from the troops prior
to the afternoon exercises. In the interval be-
tween two simulated attacks during the afternoon,
Girard and another soldier, Specialist 3rd Class
Victor M. Nickel, were ordered by their platoon
leader, a Lieutenant, to guard a machine gun and
several field jackets at the top of a hill. Girard
and Nickel were not issued live annnunition for
this duty.

It was while these soldiers were performing
this duty that the incident occurred. Mrs. Xaka
Sakai, a Japanese civilian, died a few moments

1000

Hepatimeni of State Bulletin

after beiiif;; hit in the back by an empty brass rifle
shell case lired by Girard from his ritle grenade
hiuncher. She was not over 30 yards from Gi-
rard and was going away from liim when he
fired the rifle. Girard had previously tired
similarly in the vicinity of a Japanese man, who
was not iiit.

Girard"s action in tiring empty shell cases from
the rifle grenade launcher was not authorized. He
asserted that he fired from the waist, intending
only to frighten the Japanese civilians. Others
stated, but Girard denied, that empty shell cases
were thrown out to entice tlie Japanese to
approach.

Under the U.S.-Japanese Security Treaty ' and
Article XVII of the Administrative Agreement -
under tliat Treaty, as established by the Protocol
atlopted September 29, 1953,=* the authorities of
Japan have the prior right to jurisdiction to try
members of the United States armed forces for an
injury caused to a Japanese national, unless such
injury is one "arising out of any act or omission
done in the performance of official duty."

The Japanese authorities have taken the posi-
tion that Girard's action in firing the shell cases
was outside the scope of his guard duty and was,
therefore, not "done in the performance of official
duty."

The Commanding General of Girard's division
certified that Girard's action was done in the per-
formance of official duty.

In accordance with the procedure established
under the Treaty and Acbninistrative Agreement,
the disputed matter was, on March 7, 1957, taken
before the Joint U.S.-Japan Committee estab-
lished under the provisions of the Treaty and
Administrative Agreement previously referred to.

Various meetings were held between the United
States and Japanese representatives on the Joint
Committee. As is customary, a representative of
the American Embassy in Tokyo also attended
these meetings in the capacity of observer. Both
sides continued to press their respective claims to
primary jurisdiction, and the Committee was un-
able to reach agreement.

The Commanding General, Far East Command,
rejiorted the facts to the Department of the Army,
the executive agent for the Department of De-

" Bulletin of Sept. 17, 19.51, p. 464.
= Ibid., Mar. 10, 10.52, p. 382.
'Ibid., Nov. 2, 1953, p. 59.5.

fense. The Department of Defense considered
having the Joint Committee refer the matter in
dispute to the two Governments for settlement,
but rejected this procedure as inadvisable under
the circumstances. Department of Defense in-
structions were accordingly issued, thi'ough the
Department of the Army, to the Far East Com-
mand to the eti'ect that the U.S. representative
on the Joint Committee should continue to press
the claim for jurisdiction, but that, in case of
continued deadlock, he was authorized to waive
jurisdiction to Japan. After three weeks of ad-
ditional negotiations, the U.S. representative
waived jurisdiction in the name of the United
States.

Girard was subsequently indicted by the Japa-
nese judicial authorities for causing a death by
wounding — the least serious homicide charge for
which he could have been indicted under Japa-
nese law. In determining whether Giiard's
actions were in violation of law, all the facts, as
presented by both sides, must now be weighed by
the Japanese court, just as they would by a U.S.
court-martial, if trial were held under U.S.
jurisdiction.

In accordance with Public Law 777 of the 84th
Congress, the United States Government will pay
for counsel chosen by Girard to defend him in
this trial. Pursuant to the Administrative Agree-
ment under the Japanese Treaty, Girard will be
guaranteed a prompt trial, the right to have repre-
sentation by counsel satisfactoi-y to him, full in-
formation as to all charges against him, the right
to confront all witnesses, the right to have his
witnesses compelled to attend court, the right to
have a competent interjireter, the right of com-
munication with United States authorities, and
the presence of a United States representative as
an official observer at the trial. This observer is
required to report to United States authorities on
all aspects of the trial and the fairness of the court
proceedings.

The U.S. authorities will, of course, see that all
evidence is available to Girard and his counsel,
and will render every proper assistance to him and
his counsel in protection of his rights.

United States troo^Ds are stationed in many
countries as part of our own national defense and
to help strengthen the Free Woi-ld struggle
against Communist imperialism. The matter of
jurisdiction in cases of otfenses against the laws

June 24, 1957

1001

of host countries, whether by our servicemen
abroad or by servicemen of other countries in the
United States, is dealt with by mutual agreements.
In the operation of this system in Japan there
has been the greatest measure of mutual trust
and cooperation. Since the present arrangement
became effective in October 1953, Japan, in the
overwhelming majority of the cases in which it
had primary right to try American personnel, has
waived that right in favor of U.S. action. There
is every reason to believe that trial of U.S. Army
Specialist 3rd Class William S. Girard in the
Japanese courts will be conducted with the utmost
fairness.

India Begins Repayment
of Lend-Lease Silver Debt

Press release 340 dated June 4

Following is the text of the revnarhs made at
Jersey City, N. J., on May 31 by William V. Ticjn-
age, Deputy Director, Office of International Fi-
nancial and Development Affairs, on the occasion
of the receipt from India of the first installment
(3,263,000 fine troy otmces) on Indians repayment
of its World War II lend-lease silver deht to the
United States.

It is a privilege for me to be here this morning
to accept on behalf of the United States Govern-
ment the first installment of silver returned by
India to the United States in accordance with
the terms of the lend-lease silver agreements of
1943 and later. The United States lend-leased
silver to India, as well as to some of our other
allies in World War II, as a gesture of friend-
ship and as a means of assisting them in carrying
out their war effort. The agreements provided
that the silver was to be returned 5 years after
the end of the national emergency.

We are now witnessing the beginning of the
final fulfillment of an agreement made about 14
years ago. Those were days of considerable stress
and turbulence. We can now, perhaps, look back
upon those days with a sense of historical per-
spective. One of the unchanging elements in the
picture, however, is demonstrated in the deter-
mination of free and independent nations to carry
out their commitments. We are exceedingly
thankful of this reminder that wo have been able
to make such agreements throughout the world,
as in this instance with India.

Tentii Anniversary
of Marshall Plan

Following is the text of a message sent hy
President Eisenhower to General of the Army
George O. Marshall on June 5. The message was
read during ceremonies held at the President's
Guest House on that date ivhen General Marshall
was honored hy inember natioris of the Organiza-
tion for European Economic Cooperation on the
10th anniversary of his address at Hansard Uni-
versity in which, as Secretary of State, he set forth
proposals for the European Recovery Program.

White House press release dated June 5

Dear General ]VL\rshall : Only ten years ago,
the nations of free Europe stood on the brink of
economic collapse and political chaos. Millions
of men and women who had fought and suffered
in World War II to regain peace and freedom
were confronted by a new danger infinitely more
complex but no less terrifying than war itself.
The fate of all Western Civilization hung in the
balance, and there were many to whom disaster
seemed inevitable. That this tragedy was averted
is due in large measure to the bold and imagina-
tive undertaking which you proposed and which
rightfully bears your name.

Today, on the tenth anniversary of the pro-
nouncement that launched this undertaking, free
Europe has recovered a remarkable degree of eco-
nomic health, accompanied by an upsurge in po-
litical stability, military power, and spiritual
vitality.

As the world today looks ahead to the trouble-
some problems of the future, we can talie courage
and confidence from our experience in this pro-
gram— from the proven demonstration that even
the most intricate of liunian problems are solu-
ble— from the Icnowledge that mankind is still
capable of moving forward with imagination and
faith to build a safer and happier world.

I trust that you feel great pride in the success
of the European Recovery Program. I assure
you that the American people have a deep appre-
ciation of what you did for them in proposing and
designing that program.

With best wishes for your continued health
and happiness,
Sincerely,

DwiGiiT D. Eisenhower

1002

tiepattmsn\ of State Bulletin

Economic Negotiations Between the United States and Poland

Press release 343 dated June 7
DEPARTMENT ANNOUNCEMENT

The chairmen of the United States and Polish
economic delegations on Jime 7 issued a joint state-
ment annoiuicing the completion of the economic
negotiations between the two Governments which
began on Februaiy 26.^

As indicated in tlie joint annomicement, the
United States and Poland have entered into credit
and sales arrangements providing for the ship-
ment to Poland of agricultural commodities and
mining machinery. An amoimt of $30 million
will be extended to Poland in the fomi of a line
of credit, to be achninistered by the Export-Import
Bank of "Washington. In addition, an amoimt of
$18,900,000 is provided for in an agreement for
the sale of cotton and fats and oils to Poland for
local curi-ency (Polish zlotys) pursuant to the
Agricultural Trade Development and Assistance
Act (Public Law 480).

Tlie representatives of the two Governments
have also prepared the text of a supplement to
the agricultural surplus commodities agreement
wliich would add to the agi-eement just signed pro-
vision for the sale of additional surjjlus agri-
cultural commodities (wheat and cotton) valued
at $46,100,000 at export prices and including ocean
transportation. It is hoped that the supplemental
agreement may be signed as soon as possible.

Polish zlotys received by the United States
under the agreement on surplus agricultural com-
modities will be deposited at the rate of 24 zlotys
to $1, the most favorable prevailing rate
of exchange, in a special dollar denominated ac-
comit. Such zlotys will be available for U.S. uses,
including expenses of the American Embassy
in Warsaw. The agreement provides that, begin-
ning 5 years after tlie date of the agreement, the
Polish Government will repurchase for dollars, at
a rate not to exceed $726,000 per year, such zlotys

' BuixETiN of Mar. IS, 1957, p. 440.

as the United States does not use. Upon entry
into force of the supplemental agreement this
amount would be increased to $2,500,000.

The Polish Government has expressed the desire
to make additional purchases of agricultural and
other commodities in the United States under
credit or local currency sales arrangements. The
United States will continue to study these pro-
posals and will give consideration to discussions
with the Polish Government with respect to them
at a mutually convenient date.

The two Governments have also agreed upon
early negotiations looking toward the settlement
of American property claims against Poland re-
sulting from nationalization measures after
World War II and the unblocking of prewar Po-
lish assets in the United States.

There is at present no reliable estimate of the
value of American property aifected by nation-
alization and other property takings by Poland.
As one of the steps in the preparation for these
discussions, the United States Foreign Claims
Settlement Commission will in the near future
issue a public notice requesting American claim-
ants to furnish certain information with respect
to their property claims against Poland.

The value of blocked prewar Polish assets in the
United States is estimated at less than $2 million.

In separate actions the Government of the
United States is taking the following measures
designed to broaden commercial and financial re-
lations with Poland :

The U.S. Treasury Department is amending
Treasury Circular 655 so as to remove tlie prohi-
bition on the transmittal of Treasury checks and
remittances in payment of social security, veter-
ans, and other benefits under United States laws
to Polish residents. Such remittances have been
prohibited since 1951. The Polish Government
has informed the U.S. Government of the change
in Polish exchange and other administrative regu-
lations and particularly of the regulation of the
Polish Minister of Finance, dated November 7,

June 24, 1957

1003

1956, removing the prohibition on the possession
of foreign means of payment by Polish citizens in
the coimtry, as well as of the introduction of a
new exchange rate in regard to remittances from
abroad, effective from February 11, 195T. These
changes make it possible for Polish citizens to
receive from abroad checks and remittances of this
kind and to hold or cash them at the highest ofS-
cial rate of exchange, currently 24 zlotys to $1.

The Department of Agriculture of the United
States is annoimcing that the Coimnodity Credit
Corporation is now prepared to consider appli-
cations for credit arrangements in connection with
export sales of Commodity Ci"edit Corporation
commodities for shipment or transshipment to
Poland.

The Department of Commerce will shoi'tly an-
nounce amendments of its export control regula-
tions designed to simplify licensing procedures
for U.S. exports to Poland.

The members of the U.S. and Polish economic
delegations were as follows :

United States delegation

Thorsten V. Kalijarvi, Assistant Secretary of State for

Economic Affairs, chairman of the delegation
Harold C. McClellan, Assistant Secretary of Commerce
Earl L. Butz, Assistant Secretary of Agriculture
Stuart H. Van Dyke, Director, Regional Office for Euroi)e
and Africa, International Cooperation Administration

Polish delegation

Henryk Kotlicki, Director General, Ministry of Finance,
chairman of the delegation

Stanislaw Raczkowskl, Adviser to the President of the
National Bank of Poland

Zygninnt Karpinski, Adviser to the President of tlie Na-
tional Bank of Poland

Edward Iwaszkiewicz, Member, Planning Commission of
the Council of Ministers

Marian Adamski, Etepartmental Director, Ministry of
Foreign Trade

JOINT STATEMENT BY CHAIRMEN OF U.S. AND
POLISH DELEGATIONS

The economic negotiations between the United
States and Polisii Economic Delegations, which
began on Febriniry 26, were completed today.

As a result of these negotiations the two Gov-
ernments have agreed upon ariangements for the
siiipmcnt to Poland of agricultural and other
products from the United States and on further

1004

steps for the settlement of questions relating to
American property in Poland and Polish prop-
erty in the United States.

I. Agreements Concerning Polish Purchases of Com-
modities and Equipment in the United States

1. The United States will extend to Poland a
line of credit of $30,000,000, to be administered by
the Export-Import Bank of Washington, for the
purchase of agricultural products and mining
equipment and the payment of transportation
costs. The credit will be repayable in dollars and
will bear interest at 4^/2%. Payments on th«
principal amount of the credit will begin in 1962
and will be amortized over a period of 20 years.

2. Under the terms of the Agricultural Trade
Development and Assistance Act the United
States will sell to Poland for local currency, cot-
ton and fats and oils, pursuant to an agreement
entered into between the two Governments. The
export value of the commodities provided for un-
der this agreement together with transportation
costs for products moved in United States flag
vessels is about $18,900,000.

The Export-Import Bank credit of $30,000,000
together with shipments under the Agricultural
Coimnodities Agreement would enable Poland to
make the following purchases in the United States :

Qiiatttity

Export Value

Commodity

(Approximate)
metric tons

{Approximate)

Wheat

100.000

$6, 400, ODD

Cotton

2o,()00

19. 200. 000

Soybeans

60,000

6, 000, 000

Fats and oils

17,500

.3. 600. 000

Mining Machinery

4, (M 10, 000

Transportation (esti-

It. 700, tXK)

mated )

$4S, 900, 000

11. Preparation of Text of Supplemental Agreement

1. The two Governments have also prepared the
text of a supplement to the Agricultural Com-
modities Agreement which would, when made
effective, jjrovide for the sale to Poland, for local
currency, of the following additional couuuodities :

Commodity

Wheat
Cotton

Transportation (esti-
mated)

Quantity Eufport Value

(Approximate) (Approximate)

metric tdtiH

400,000 $2.1. 000, 000

24.400 17. 100, 0(X»

:i, 400, 000

.$46, 100, 000

The text of this supplement to the Agricultin-al

Commodities Agreement provides that it would

Department of Sfafe Bulletin

J

become effective upon signature. ■\^niile this text
ciinnot be signed at the present moment, it is the
intention of the two Governments to arrange for
signature at the earliest practicable date.

III. Property Questions

1. The two Governments have agreed to start,
early in 1958 in Warsaw, negotiations for a lump-
sum settlement of American property claims re-
sulting from nationalization and other property-
takings by Poland.

2. The two Govermnents will also begin discus-
sions at an early date looking toward the release
of pre-war Polish assets in the United States which
have been blocked under regulations of tlie Gov-
ernment of the United States.

Thorsten V. Kalijarvi

Chairman., United States Econcndc Delegation

Henryk Kotlicki

Chairman, Polish Econom>ic Delegation

Washington, D. C.
June 7, 1957

TEXT OF AGREEMENT

Surplus Agricultural Commodities Agreement Be-
tween the United States of America and the Po-
lish People's Republic

The Government of the United States of America and
the GoTernment of the Polish People's llepublio,

RecoKniziuj; the desirabilit.v of expanding trade in afiri-
cultural commodities between their two countries in a
manner which would not displace usual marketings of
the United States of these commodities or unduly dis-
rupt world prices of agricultural commodities;

Considering that the sale of agricultural commodities
produced in the United States for zlotys will assist in
achieving such an expansion of trade;

Desiring to set forth the understandings which govern
the sales of agricultural commodities by the Government
of the United States of America pursuant to Title I of
the Agricultural Trade Development and Assistance Act
of 1954, as amended, and the measures which the two
Governments will take individually and collectively in
furthering the expansion of trade in such commodities ;

Have agreed as follows ;

Akticle I
Sales for Local Currency

Subject to the issuance by the Government of the United
States of America and acceptance by the Government
of the Polish People's Republic during the period ending

October 31, 1957, of purchase authorizations, the Gov-
ernment of the United States of America undertakes to
finance the sale to purchasers authorized by the Gov-
ermnent of the Polish People's Kepublie of the following
agricultural commodities pursuant to Title I of the Agri-
cultural Trade Development and Assistance Act of lO.'i-l,
as amended, in the amounts indieate<l.

Value
Commodity {in ill ion dollar«)

Cotton ^14 4

Inedible tallow 2. 8

lOdible vegetable oils o_ g

Ocean transjiortation 0. 9

Total

$18.9

Purchase authorizations issued pursuant to the above
will include provisions related to the procurcmont and
delivery of commodities, the time and circumstances of
the dejiosit of the zlotys accruing from such .sale, and
other relevant matters.

Article II

Uses of Zlotys

1. The two Governments agree that the zlotys accru-
ing to the Government of the United States of America
as a consequence of the sales made pursuant to this
Agreement will be used by the Government of the United
States of America, in accordance with Section 104 of the
Agricultural Trade Development and Assistance Act of
1954, as amended, to help develop new markets for United
States agricultural commodities under subsection (a)
thereof; to finance the purchase of goods or services for
other countries under subsection (d) thereof; to pay
United States obligations under sub.section (f) thereof;
to finance educational exchange activities under sub-
section (h) thereof; and to finance the translation, pub-
lication and distribution of books and periodicals under
subsection fi) thereof.

2. The zlotys accruing under this Agreement shall be
expended by the Government of the United States of
America, for the purposes stated in paragraph 1 of this
Article, in .such manner and order of priority as the Gov-
ernment of the United States of America shall determine.
It is understood that, with respect to the purchase of
goods or .services for other countries, the types, quanti-
ties and prices will be subject to negotiation between the
two Governments.

Abticue III

Deposit of Zlotys

1. The amount of zlotys to be deposited to the account
of the United States shall be the dollar sales value of
the commodities reimliursed or financed by the Govern-
ment of the United States converted into zlotys at the
highest of any rate of exchange (i. e. the largest number
of zlotys per U.S. dollar) established by the Government
of the Polish People's Republic or any agency thereof,
prevailing on the dates of dollar disbursement by the
United States. Such dollar sales value shall include
ocean freight and handling reimbursed or financed by the
Government of the United States under this Agreement

June 24, 7957

1005

except that it shall not include any extra cost of ocean
freight resulting from a United States requirement that
the commodities be transported on U.S. flag vessels.

2. Tlie two Governments agree that the following pro-
cedure shall apply with respect to the zlotys deposited
to the account of the United States under this Agreement.

(a) On the date of the deposit of such zlotys to the
account of the U.S. they shall, at the same rate of ex-
change at which they were deposited, be converted and
transferred to a special dollar denominated account to
the credit of the United States Government in the Na-
tional Bank of Poland.

(b) Withdrawals in zlotys from such special dollar
denominated account by the United States for uses re-
ferred to in Article II of this Agreement other than the
purchase of goods or services for other countries shall
be paid by the National Bank of Poland at the highest
of any rate of exchange (i. e. tlie largest number of
zlotys per U.S. dollar) established by the Government of
the Polish People's Republic or any agency thereof, pre-
vailing on the date of the withdrawal, provided tliat if
such rate is less favorable than the rate at which zlotys
were deposited under paragraph 1 of this Article, the
rate in paragraph 1 shall apply.

(c) Payment for purchases of goods or services for
other countries referred to in Article II of this Agreement
shall be made by reducing the balance in the dollar de-
nominated account by an amount equal to the dollar
prices of such purchases agreed upon by the two Gov-
ernments.

(d) If any unused balance remains in such special
dollar denominated account on and after June 1, 1962,
the Government of the Polish People's Republic agrees
that if the United States Government shall so elect, the
National Bank of Poland will sell to the Government of
the United States the sum of $726,000 in dollar exchange
annually, beginning on June 1, 1062, and on each suc-
ceeding June 1, such dollar exchange to be paid for by
reducing the balance in the dollar denominated account
by the same amount.

Ajbticle IV

General Undertakings

1. The Government of the Polish People's Republic
agrees that it will take aU possible measures to prevent
the resale or transshipment to other countries, or the use
for other than domestic purposes (except where such
resale, transshipment or use is specifieally approved by
the Government of the United States of America), of
the surplus agricultural commodities purchased pursuant
to the provisions of this Agreement, and to assure that
the purchase of such commodities does not result in in-
creased availability of these or like commodities for
export to other countries.

2. The two Governments agree that they will take
reasonable precaution to assure that sales or purchases
of surplus agricultural commodities pursuant to this
Agreement will not unduly disrupt world prices of agri-
cultural commodities or displace usual marketings of the
United States of America in these commodities.

1006

Abticle V

Consultation

The two Governments will, upon the request of either
of them, consult regarding any matter relating to the
application of this Agreement or to the operation of ar-
rangements carried out pursuant to this Agreement.

Abticle VI
Entry Into Force
This Agreement shall enter into force upon signature.

In witness whereof, the respective representatives,
duly authorized for the purpose, have signed the present
Agreement.

Done in duplicate at Washington in the English and
Polish languages this seventh day of June, 1957.

For the Government of the United States of America :

Thoksten V. Kaiijaevi
For the Government of the Polish People's Republic :
Henbtk Kotlicki

NOTES RELATING TO RATE OF EXCHANGE

U.S. Note

June 7, 1957

Excellency : I have the honor to refer to the Surplus
Agricultural Commodities Agreement between the Gov-
ernment of the United States of America and the Gov-
ernment of the Polish People's Republic signed today and
in particular to Article III, Paragraph 1, concerning the
rate of exchange for the deposit of zlotys by the Gov-
ernment of the Polish People's Republic in payment for
surplus agricultural commodities.

I wish to confirm the United States Government's under-
standing of the agreement reached that so long as there
is no change in the present exchange rate system of
Poland, the rate of twenty-four (24) zlotys per U.S.
dollar shall be considered the "highest of any rate of
exchange (i. e. the largest number of zlotys per U.S.
dollar), established by the Government of the Polish
People's Republic or any agency thereof".

I shall appreciate receiving Your Excellency's confirma-
tion of the above understanding.

Accept, Excellency, the renewed assurances of my high-
est consideration.

For the Secretary of State:

Thorsten V. Kalijauvt

Chairman of the United States Delegation

His Excellency
Henryk Kotlicki,
Chairman of the Polish Delegation.

Polish Note

June 7, 1957

Excelixnct: I have the honor to refer to your note
of June 7, 1957 reading as follows :

Department of State Bulletin

[At tLis point the Polish note repeats the preceding U.S. note.]

I have the honor to couflriu ou behalf of luy Govern-
ment the unilerstjinding set forth in the above quoted
note.

Accept, Excellency, the assurances of my highest con-
.sideration.

Heneyk Kotlicki
Chairman,
Polish Economic Delegation

His Excellency

John Foster Dulles,
Secretary of State.

TEXT OF SUPPLEMENTAL AGREEMENT

Agreement (For Signature at a Mutually Convenient
Date) Amending the Surplus Agricultural Com-
modities Agreement of June 7, 1957 Between the
United States of America and the Polish People's
Republic

The Surplus Agricultural Commodities Agreement be-
tween the United States of America and the Polish Peo-
ple's Republic signed at Washington on June 7, 1957 is
hereby amended to provide for financing by the Govern-
ment of the United States of America of additional com-
modities and ocean transportation, as follows:

Value
Comtnodity {million dollars)

Wheat $25. 6

Cotton 17. 1

Ocean transportation 3. 4

Total

S.l

The provisions of this Agreement are supplemental to
and not in replacement of the provisions of the Agree-
ment of June 7, 1957, and all provisions of the Agreement
of June 7, 1957, except the table of commodities and
amounts specified in Article I thereof, are applicable to
this Agreement. Uiwn the entry into force of this Agree-
meut the sum "$726,000" specified in paragraph 2(d) of
Article III of the Agreement of June 7, 1957 shall be
considered deleted, and the sum "$2,500,000" substituted
therefor.

This Agreement shall enter into force upon signature.

In witness wheeeof, the resx)ective representatives,
duly authorized for the purpose, have signed this Agree-
ment.

Done at Washington in the English and Polish lan-
guages this 1957.

For the Government of the United States of America

For the Government of the Polish People's Republic

NOTES RELATING TO NEGOTIATIONS ON
AMERICAN PROPERTY CLAIMS

U.S. Note

June 7, 1957

Excellency : I have the honor to refer to the recent
discussions between representatives of the Government
of the United States of America and the Government of
the Poli.sh People's Republic, on the settlement of Ameri-
can property claims against Poland.

The United States Government is agreeable in principle
to the holding of negotiations with the Government of the
Polish People's Republic with a view to reaching a lump-
simi settlement of claims based upon the nationalization
or other taking of American property by the Polish au-
thorities. The United States Government proposes that
the settlement include all claims based on the loss of
American property, rights and interests affected by
nationalization, expropriation, or other similar measures,
taken by the Polish authorities.

If the Government of the Polish People's Republic is
agreeable to the negotiation of a lump-sum settlement, the
United States proposes the commencement of negotiations
in Warsaw at an early date to be determined by mutual
agreement.

The United States Government proposes the following
general procedure:

(1) Prior to beginning the negotiations, the United
States Government will examine statements from Amer-
ican claimants describing the nature and basis of their
claims and the amounts claimed. The United States Gov-
ernment will thereafter negotiate with Poland a lump-sum
settlement. Also subject to negotiation will be the terms
of Poland's payment.

(2) The negotiations with Poland would in principle
include a joint examination of general categories or groups
of related claims and not a case-by-case examination.
It is contemplated that, in the interests of both Govern-
ments, the Government of the Polish People's Republic
would furnish the United States Government with data
relative to the damage or destruction caused by acts of
war to the physical properties involved.

(3) After a lumjHSum settlement has been reached, the
United States and its nationals will need the cooperation
of Polish authorities in the adjudication of the claims.
This cooperation will include the facilitation, under pro-
cedures to be agreed upon, of examination by representa-
tives of the United States Government, to the extent
possible, of the properties in Poland for which claims are
made and the furnishing of copies or extracts of relevant
Polish public documents upon request of official repre-
sentatives, or individual claimants for presentation to the
American adjudicating agency.

I shall appreciate receiving your Excellency's con-
firmation that the Government of the Polish People's
Republic is agreeable to the commencement of negotia-
tions upon the foregoing basis.

June 24, J 957

1007

Accept, Excellency, the assurances of my highest con-
sideration.

Thorsten V. Kalijarvi
Chairman of the United States Delegation

His Excellency
Henryk Kotucki,

Chairman of the Polish Delegation.

Polish Note

Washington, D. C.

June 7, ^957
ExcEXLENCY : I have the honor to acknowledge the
receipt of Your Excellency's note dated June 7, 1957,
which reads as follows :
[At this point the Polish note repeats the preceding U.S. note.]

In reply, I have the honor to confirm to Your Excel-
lency that the Government of Poland is agreeable to the
commencement of negotiations upon the foregoing basis.
Accept, Excellency, the assurances of my highest
consideration.

Henryk Kotlicki
Chairman of the Polish Delegation

His Excellency

Thorsten V. Kalijarvi,

Chairman of the United States Delegation.

STATEMENT BY CHAIRMAN OF POLISH DELE-
GATION'

The policy of giving more freedom of decision to in-
dividual industrial enterprises makes it necessary to pro-
vide these enterprises with larger inventories. It is this
policy which has contributed recently to larger imports
of iron ore, wool, nonferrous metals, etc., and the Agree-
ment just concluded will enable us to meet, on favorable
conditions, tlie needs of our cotton textile and fat in-
dustries, giving them larger inventories of raw materials.

2. The relatively small amount of .$4,000,000 will be
allocated to the purchase of mining equipment necessary
for our coal mining industry. Poland is interested in
buying American investment goods for much larger
amounts but these bigger needs could not be satisfied at
the pre.sent moment.

3. The Agreements just concluded are of great im-
portance for the economic relations between our coun-
tries and are a considerable step towards their further
development.

4. I am convinced that apart from the economic nego-
tiations which have just been completed, public opinion
in both countries received with satisfaction the news that
voluntary aid organizations, as for instance CARE and
American Relief for Poland, will be able to resume their
activities with respect to I'oland.

5. The recently published decision of the Polish Govern-
ment's reducing or abolishing customs duties In Poland
for most goods sent in gift parcels from abroad, will
greatly facilitate this form of assistance given by Poles
living all over the world, especially in the Unltetl States,
to their relatives in Poland.

1. The agricultural products which will be purchased
now by Poland in the United States will be used in the
following ways :

a) The wheat is to be used for an increase of stock-
piles which is necessary in order to stabilize wheat
prices on the free market at a level fair to producers
and consumers.

An agreement of January 1957 between the Polish
United Workers Party and the Polish Peasant Party
estal)lished that the compulsory deliveries of grain and
other agricultural products should be gradually reduced
with the objective of their eventual elimination.

In this connection the I'olish Government recently made
public its decision to reduce in part the compulsory de-
liveries of grain. This decision will enable the peasants
to sell alKmt 700,000 more tons of grain than heretofore
at free market prices which are higher than the prices
under the compulsory deliveries system. In order to
avoid serious jiroblems in meeting consumer needs, the
Government must have suflicient stockpiles of grain at its
di.siK)sal. The i)urchase of wheat in the United States
will be made with this purpose in mind.

b) Cotton and fats are to be used in order lo increase
the inventories In the factories. Poland had to import
every year largo quantities of raw materials necessary
for industrial production. Because of balance of pay-
ments difficulties, inventories of these raw materials are
insufficient.

'Given to the press ou June 7.

1008

SIGNING CEREMONY

Remarks by Assistant Secretary Kalijarvi

Press release 348 dated June 7

Tlie documents we have signed and the arrange-
ments entered into betAveen us make a good begin-
ning toward more expanded economic relations be-
tween our two countries. I must confess tliat prior
to your arrival there were many questions as to
what might be accomplished by our discussions.
Given the limited contacts between our two coun-
tries over the past several years, there are, of
course, a great many subjects of an economic na-
ture that still remain to be discussed and perhaps
resolved. Nevertheless, I believe that the arrange-
ments we are completing today are of a substantial
nature and can be construed as an expression of the
friendship of the people of the United States for
the people of Poland. The agreements resulting
from oui' negotiations will be followed with con-
tinuing interest by the American people.

For me pei-sonally it has Ihhmi a pleasant ex-
perience to deal with you, and T take personal
satisfaction in the conclusion of these arrange-

Departmenf of Stale Bulletin

J

merits. I hope they open a new chapter of closer
relationsliips between our two countries.

Remarks by Mr. Kotlicki

Translation

Tliis heap of documents which we signed a while
ago opens up a new period in the Polish-American
economic relations.

The actual economic advantages of these agree-
ments are evident. But I wish to express my con-
viction that the way has been cleared for further
broadening of Polish-American economic rela-
tions. These first Polish-American agi-eements

concluded after a 10-year interval are certainly a
proof and an element of normalization of economic
cooperation in the world. And we know that good
and free international commercial relations are
the basis for improvement of political atmospliere
and for relaxation of political tension, which is
the aim and hope of all the nations in the world.

This is how, in a very simple way, I proved to
you, Mr. Chairman, what a great international
meaning your signature has. Let me shake your
hand which has been working so hard recently,
and let me tell you that I am convinced we have
done a good job.

The Paradox of Foreign Economic Policy

by Thorsten V. Kalijarvi

Assistant Secretary for Economic Ajfairs '

The subjects on the program and the list of
speakers testify to your knowledge that your
Government's choice of policies will in part de-
termine your business opportunities abroad. As
operating executives from all parts of the coun-
try, you have a large stake in the foreign eco-
nomic policy of the United States.

And yet I wonder how many of you have actu-
ally given careful attention to how that policy
is formulated and how many competing forces
it must reconcile.

The Changing Nature of Contemporary Foreign
Policy

Though foreign policy has existed since na-
tions began, it has rarely penetrated the con-
sciousness of the ordinary man and woman except
in times of crisis and violence. Even in war-

^ Address made before the International Management
Association at New Tork, N. T., on May 23 (press re-
lease 309 dated May 22).

iune 24, 1957

428951—57 3

time the homespun life of people has gone on
much as usual while policy issues have been set-
tled by armored knights or by professional
armies and navies. In peacetime the average
person has all too often thought of foreign policy
as a remote sphere of rarefied politics for kings,
presidents, and other high officials.

Perhaps in the world of yesterday there was
justification for this concept, but in the mid-
twentieth century the situation is radically dif-
ferent. Suddenly man can commmiicate and
travel with ease and rapidity between any given
spots on the planet. New means of warfare place
in deadly jeopardy, not knights and professional
armies, but men, women, and children in their
homes — entire populations — perliaps even all life.
Science and technology are pouring out a stead-
ily mounting flood of new products that can find
maximum outlet only in trade between peoples.
The less developed regions see visions and de-
mand a new life with all its implications of
capital investment, teclinical education, expanded

1009

communications, and a thousand and one othei*
things which only the more industrialized nations
can supply.

Political frontiers are being transcended, and a
new content is being injected into foreign policy.
In this atomic age foreign ^jolicy is a changing,
complex business. When peoples are inter-
dependent and when one false move can mean
oblivion, no nation can safely develop its own pat-
tern of life in political or economic isolation. Co-
operation is essential.

Nations now recognize that international rela-
tions have outgrown their formal legalistic frame-
work and have spread over wide areas of normal
living. As a part of this maturing of interna-
tional relations, it is axiomatic that a sound inter-
national economy is essential for the free world.
The free world knows that it needs a strong eco-
nomic base for its military defense system and for
its democratic institutions. Foreign policy is no
longer confined to international political maneuv-
ering. It concerns itself with economics, which
deals with how people live. That is why among
other things alliances have been supplemented
with trade, finance, and programs of development.

The Paradox of Foreign Economic Policy

Foreign economic policy is especially important
to the United States because it is an integral part
of our general foreign policy. It is indistinguish-
able from other foreign policy in that it seeks to
enhance the security and well-being of the Amer-
ican people in an unsettled and dangerous world.

And yet foreign economic policy is something
else, too. It is an extension into the field of inter-
national relations of our own domestic economic
activities. As in domestic affairs, conflicts occur
between interests. Conflicts may also develop be-
tween short-term and long-term objectives. In
domestic aff'airs, these conflicts as a rule are
resolved by tlie forces of the free market. But
because foreign economic policy involves dealings
with other governments, our Government must
play a more conspicuous role than it does in the
domestic economy. The interplay of all these
forces gives foreign economic policy its paradox-
ical appearance.

Illustrative Cases

The paradox takes many forms. The Govern-
ment, for example, nuist buy expensive equipment.

But when it buys such equipment from a foreign
source, many people regard this as unfortunate.
There are those who urgently advocate the "Buy
American" principle for Government procure-
ment. It is obvious why a domestic producer of a
particular piece of equipment should want the
business. Nor is it difficult to understand why his
employees hold similar views. If, in such in-
stances, the American producer is not given pref-
erence over the foreigner, it looks as if our foreign
economic policy is in conflict with our domestic
interests.

If this were all there were to the problem, the
conclusion might be correct. We might have an
actual conflict, not merely a paradox. But there
are other factors. If the United States Govern-
ment were to limit all its purchases to domestic
producers, the cost of government would go up.
So the question is not one of conflict between do-
mestic and foreign policy but between a particular
domestic producer and the taxpayei-s at large.

We are all consumers and, as such, are interested
in the widest selection of goods at the lowest prices.
Tliis is the essence of one of our basic freedoms
in the economic field — the freedom of choice. Im-
ports add to our real wealth and provide competi-
tion and variety. At the same time, as with all
competition — internal or external— imports maj'
cause difficulties for the domestic industry pro-
ducing similar products. Let me illustrate.

Take the problem of tuna fish, where the fish-
eries segment of the industry prefers that tuna
imports be kept to a minimum in order to secure
better prices. On the other hand, the tuna canners
welcome imports in order to obtain lower costs
and a more favorable position in competition with
other high-protein foods. Tlie rapid rise in tuna
consumption in the United States has occurred be-
cause of supplies and prices made possible by im-
j)orts.

Then there is the export side, which should not
be forgotten. Japan, the source of most of our
tuna imports, is a major purchaser of United
States farm products, and we have sizeable agri-
cultural surpluses we want to sell abroad. More-
over, Japan is one of our best customers in the
world. And, of course, our own national security
is bound up with the strength of the Japanese
economy.

Or take the even more complicated problem of
oil iuiports, which present another sot of Lonipet-

1010

Department of State Bulletin

ing considerations. Entirely aside from our rela-
tions with other oil-producing countries, there are
a number of domestic conflicts to be noted. For
example, our own oil industry is split between the
companies that want to import foreign crude oil
and those domestic producer groups that claim
imports are depressing the market and retarding
the rate of discovery of new reserves. There is
also wide disagreement over the national security
aspect of oil imports. Is it better from the stand-
point of national defense to depend almost exclu-
sively on domestic crude oil, or is it better to con-
serve domestic supplies for a national emergency
and rely in the meantime on an increasing volume
of imports?

Interagency Committees

These are typical trade problems with which
the United States Government must deal. Fre-
quently the President must make the ultimate de-
cision in the light of all the facts. To bring to
bear all the various considerations that must be
taken into account in our foreign economic policy,
there has been established an elaborate structure
of interagency committees.

When I say "elaborate" I speak with some feel-
ing, for one of the principal functions of the Bu-
reau of Economic Affairs is to participate, on
behalf of the Department of State, in over 75
such committees where the never-ending search
for the public interest goes on every working day
in the year.

As management experts, you may be interested
in the operation of one of these interagency com-
mittees. The Trade Agreements Committee
(Tag) is charged with making recommendations
to the Pi-esident regarding his use of the authority
to reduce tariffs under the Trade Agreements Act.
This means making recommendations to the Presi-
dent as to offers and requests which the United
States should make in tariff negotiations.

The committee includes representatives of the
Departments of State, Commerce, Agriculture,
Defense, Labor, Interior, and Treasury, the Tariff
Commission, and the International Cooperation
Administration. Each representative is respon-
sible for making certain that the committee as a
whole is aware of those problems in which his
agency has a special interest. During the discus-
sion of a tariff negotiation, for example, the De-
partment of Labor representative may bring up

the question of unemployment in a certain area,
while the Interior representative may discuss the
problem from tlie standpoint of natural-resource
development. Thus the recommendation of the
Trade Agreements Committee is balanced, and
relevant factors are taken into consideration in
determining the public interest.

I shall not go into the other steps on the domestic
side of the tariff' negotiation process, which in-
cludes public hearings and so on. I think you
have some idea of the complexity of the problems
and the thoroughness with which all the many
facets are examined.

The Bureau of Economic Affairs is, of course,
not the only part of the Department that deals
with economic matters. They permeate all for-
eign relations, and the geographical desks could
not avoid these matters if they wished. What
our bureau does is to coordinate foreign economic
policies for the Department, advise on the com-
plex technical subject matter, represent the
United States in certain types of negotiations, and,
as I have said, represent the Department in the
constant efforts to reconcile domestic and foreign
policy considerations in the development of for-
eign economic policy.

Our bureau has specialists on trade agreements
and tariffs, international business practices, com-
modities that are important in world trade (such
as petroleum, wheat, cotton, and so on), the con-
trol of East- West trade, international financial
problems, economic development, aviation, sliip-
ping, and telecommunications.

The Case of International Civil Aviation Policy

Let us now consider in greater detail exactly
how a specific problem arose, how it was dealt
with, and how it continues to require attention.
The problem is our international civil aviation
policy.

The international civil aviation policy of the
United States is designed to obtain traffic rights at
all major points in the world for this country and
its carriers and to assure that these rights may be
exercised in an orderly, efficient manner. Of
course, the United States must offer reciprocal
advantages for the privileges it obtains, and since
World War II our Government has negotiated 48
air-transport agreements in which international
routes have been exchanged and liberal principles
in their operation have been adopted.

June 24, 1957

ion

Most of these agreements were negotiated when
commercial aviation was relatively underdevel-
oped and when tlie question of route exchanges did
not assume too great importance. International
civil aviation was a convenience, almost a luxury,
which only a few countries could afford. So the
United States, which was prepared to expand its
airline system, proceeded to do so at a rapid rate,
unhampered by effective foreign competition and
by foreign restrictions. This expansion was stim-
ulated by U.S. subsidies reaching hundreds of
millions of dollars.

As foreign nations recovered from the war, how-
ever, they took a new interest in international
aviation and foreign airlines appeared increas-
ingly on international routes. This progress was
greatly facilitated by the enterprise of United
States aircraft manufacturers, who had developed
aircraft to meet modern needs, who created foreign
markets for these aircraft in a highly competitive
field, and who assisted technically in getting the
foreign airlines into the air. Thus greater com-
petitive pressure was imposed on our airlines and
a higher premium was placed on United States air
rights abroad.

One of the greatest paradoxes in our inter-
national aviation relations is the fact that the
United States airlines are engaged in international
services which are almost entirely dependent upon
international air-transport agreements — yet these
same airlines are often the strongest source of
opposition to the conclusion of such agreements.
The continued existence, let alone growth and
development, of the United States air-transport
services depends upon rights obtained by our Gov-
ernment through air-transport negotiations with
other governments. Yet United States air-trans-
port companies continue t« oppose new agree-
ments or the amendment of existing agreements
which grant rights for operation by a foreign
airline.

Now it is noteworthy that despite the added
competition of foreign airlines Unitexi States air-
lines in 1955 obtained $225 million in passenger
revenue from international services. In this same
year all the foreign airlines serving the United
States obtained only $119 million revenue from
this service. A nongovernmental jjublication has
indicated that 65 percent of all the international
traffic to and from tlio United States in 1956 was
carried by United States carriers.

It does not always serve the interests of United
States aviation itself to negotiate in terms of com-
mercial quid pro quo. A strict application of that
principle would force American carriers to limit
the level of their services throughout the world
to that of the foreign carriers. If we want to
continue aviation relations with other countries,
we cannot prevent foreign carriers from serving
major population centei-s in the United States
just because their countries do not have points of
equal traffic-generating importance. It is the ex-
ploitation of the routes that counts in the long
run, and our own carriers have been eminently
successful in this in almost all instances. The
basic advantages to the United States airlines in
obtaining the type of agreements that have been
negotiated have in large part made this possible.
Restrictions only lead to counterrestrictions.
Other elements of international relations and
foreign economic policy must on occasion be taken
into account in deciding what is an equitable
route exchange.

Another problem that the Government faces
is that our domestic interests do not always agree
with one another. In obtaining international
rights beneficial to one carrier, it frequently oc-
curs tliat the United States must grant rights
prejudicial to another. Generally speaking, the
United States airline industry is opposed to the
granting of additional rights to foreign operators,
but the aircraft manufacturing industry has con-
siderable sums at stake in the foreign airline
market and wants to see this market encouraged.
Besides, United States communities welcome and
seek proposed international services by foreign
airlines.

If our aviation policy were to embrace pro-
tectionism at home and restrictionism toward
foreign operators, the United States could no
longer hold the line abroad. United States policy
must take into accoimt the effect it will liavo on
the policies of foreign nations and the retaliatory
measures it may produce.

Two air-transport agreements recently negoti-
ated by the United States have drawn wide com-
ment. Two years ago negotiations were under-
taken with German}',^ in whicii the United States
delegation was severely criticized for being too
generous in the granting of routes to the Ger-
mans. Experience has proved the agreement to

' VoT text of agreement, see BuixiniN of July 25, 1955,
p. 145.

1012

Department of State Bulletin

be a good one, and in fact the United States air-
lines have so far enjoyed 13 times more business
over the routes exchanged tlian tlie German air-
line, Lufthansa.

Another controversial agreement was very re-
cently concluded with the Netherlands.' This ne-
gotiation was peculiarly illustrative of the con-
flict of interests that may develop in aviation
relations. Both countries had for some time
operated reciprocal routes under temporary ar-
rangements. Since the United States airlines felt
that the Netherlands did not have much to offer
beyond the rights already enjoyed, they were
firmly opposed to the granting of additional routes
to the Dutch. This view was shared by the per-
tinent committees of the Congress. In contrast,
the United States communities to which the
Dutch proposed sei-vices were eager to have the
routes granted and besieged the Department with
letters, telegrams, and personal calls in support
of the Dutch requests. In addition, the views
of American aircraft manufactui'ers had to be
noted. The Dutch airline, KLM, is the largest
foreign purchaser of United States civil aeronau-
tical equipment and now has over $100 million
worth on order.

The Dutch wanted extensive additions to their
operating rights to the United States. The
Dutch contention was that KLM is one of the
Netherlands' biggest industries, that it provides
necessary foreign exchange to the Netherlands,
and that it is a symbol of Dutch internationalism
and initiative. KLM must be able to expand to
enhance the Dutch economy and to assist the na-
tion to maintain its position in international
affairs.

It was up to the Executive to determine what
decision would be in the best overall national in-
terest. Whatever decision was made would have
its critics. Finally it was decided the Dutch
should have some of their request but not all.
This enabled the United States to obtain the type
of agreement it desired and air rights beyond
Amsterdam. But the Dutch were not fully satis-
fied. The L^nited States airlines called the
agreement a "give away" and claimed that they
were being made to pay for interests outside the
aviation field. Bills have been introduced in Con-
gress designed to limit the Department's negotiat-
ing powers in aviation agreements. The commu-

For text, see ibid.. May 6, 1957, p. 746.

nity to which a route was not granted to the
Dutch, on the other hand, complained vigorously
and one of its newspapers carried an editorial at-
tacking the State Department for the omission.

The Department is convinced that it obtained
the most favorable agreement possible, both in the
light of foreign economic policy and aviation
policy.

Conclusion

The examples I have given can be multiplied
many, many times, but enough has been said to
make the problem clear. Foreign policy has come
to concern itself more and more with economics.
Given the complexity of foreign economic policy,
it is not surprising that occasionally some indi-
vidual or industry may feel that it is being sacri-
ficed in the overall national interest. I can assure
you that the President has said that no United
States industry is expendable; and the agencies in
Washington operate on that principle. It is not
that sound foreign relations and a prosperous do-
mestic economy are in conflict with each other —
for they are not really so — but rather that the
subject is highly complex and paradoxical at the
point of merging traffic. A high degree of dexter-
ity is called for. Nevertheless there are times
when collisions and uncertainties over the right-
of-way occur.

The next time one of these collisions comes to
your attention, I hope that you will appreciate
that, in all likelihood, there is much more to it
than immediately meets the eye.

Letters of Credence

Dominican Republic

The newly appointed Ambassador of the Do-
minican Republic, Manuel de Moya Alonzo, pre-
sented his credentials to President Eisenhower on
June 3. For texts of the Ambassador's remarks
and the President's reply, see Department of
State press release 335.

Japan

The newly appointed Ambassador of Japan,
Koichiro Asakai, presented his credentials to
President Eisenhower on June 4. For texts of
the Ambassador's remarks and the President's
reply, see Department of State press release 339.

June 24, 1957

1013

Inter-American Committee
Completes Work

Following is the text of a statement made by
President Eisenhower concerning the report of
the Inter- American Committee of Presidential
Representatives, published on May 25, together
with a Committee announcement 7nade on May 8
at the conclusion of its final meeting.

STATEMENT BY PRESIDENT EISENHOWER

White House press release for papers of May 26

I have read with great interest the 27 recom-
mendations contained in the report of the Inter-
American Committee of Presidential Representa-
tives and liave discussed them personally with
my brother, Dr. Milton Eisenhower, who served
as chairman of that Committee.

I wish to express my gratitude to the Repre-
sentatives of each Chief of State who served on
the Committee. I believe that they have made
excellent progi-ess toward the goal which was orig-
inally set for the Committee— making the Organi-
zation of American States a more effective instru-
ment in those fields of cooperative effort affecting
the welfare of the individual. I hope that many
of the recommendations will be put into effect as
promptly as possible.

These recommendations cover a wide field of
endeavor, including economic, social, and tech-
nical matters.

I am particularly impressed by the program for
eradicating malaria from the Western Hemi-
sphere within 5 years and by the proposal to estab-
lish an Inter- American Nuclear Energy Commis-
sion to further the peaceful uses of atomic energy.

The considerable expansion planned for the ac-
tivities of the Inter- American Institute of Agri-
cultural Sciences should prove of great long-range
benefit to the peoples of America. The great in-
crease in the number of scholarships for the youth
of our various countries should result in wider
educational opportunities and in improved inter-
national understanding.

A number of the recommendations call for
specific action by the Organization of American
States. I have given instructions to the appro-
priate officials of the administration to see that the
proper steps are taken, through United States rep-

resentatives in the Organization of American
States, to support these recommendations.

COMMITTEE ANNOUNCEMENT

The Inter-American Committee of Presiden-
tial Representatives announced on May 8 that
on that day it had celebrated the completion of
its work with a ceremony in the Hall of the
Americas of the Pan American Union.^ There
the 21 Representatives completed signature of
the letters which will transmit to their respective
Chiefs of State the Committee's recommenda-
tions for strengthening the Organization of
American States.

Tliis Committee was appointed as a result of
the proposal made by President Eisenhower in
July 1956 at the meeting of the Presidents of
the American Republics held in Panama. Presi-
dent Eisenhower proposed at that time to the
other Presidents ^ that

. . . each . . . name a special representative to join
in preparing . . . concrete recommendations for mak-
ing . . . [the] Organization of American States a more
effective instrument in those fields of cooperative effort
that affect the vcelfare of our peoples. To those repre-
sentatives we could look for practical suggestions in the
economic, financial, social, and technical fields which our
Organization might appropriately adopt. As one useful
avenue of effort, they could give early thought to ways in
which we could hasten the beneficial use of nuclear forces
throughout the hemisphere, both in industry and in com-
bating disease.

The Committee convened in Wasliington,
D. C., on September 17, 1956, at which time
Milton S. Eisenhower, Representative of the
President of the United States, was elected
chairman and Jose Isaac Fabrega, Representative
of the President of Panama, vice chairman.' At
that time a preliminary list of topics was dis-
cussed. The Committee held two further meet-
ings, one in January during which a definitive
agenda was adopted,* and its last, which com-
menced on April 29, 1957, and has now termi-
nated.

' For a Department announcement, see press release
277 dated May 8 (not printed).

= Bulletin of Aug. 6, 1956, p. 219.

" For a statement by Milton S. Eisenhower and a com-
munique issued at the close of the meeting, see ibid.,
Oct. 1, 1!>56, p. 511.

* For an announcement regarding four subcommittees
established at this meeting, see ihid.. Mar. 25, 1907, p. 479.

1014

Department of State Bulletin

The deliberations have been held in an in-
formal atmosphere and have been characterized
by a spirit of frankness and good will. Wliile
the Representatives have emphasized tlie mutual
advantages that would result from solutions of
the problems discussed, they have likewise recog-
nized that Pan American organizations cannot
relieve the member states of the primary respon-
sibility of finding those solutions.

The report of the Committee consists of an in-
troduction, a summary of the recommendations,
brief sections on specific programs and suggested
actions with respect thereto, and a budgetary
summary.

In the economic and financial field the Commit-
tee has recommended:

a) Strengthening and broadening the activities
of the Organization of American States in the
field of agriculture, including the expansion of
the work of the Inter-American Institute of Agri-
cultural Sciences.

b) Expansion of the services to member states
on industrialization and industrial statistics.

c) Consideration of the possibility of establish-
ing an institute to study the utilization of tropi-
cal raw materials and of an inter- American center
for teclmical research and training in the field of
transportation.

d) Preparation of a plan by the 7th Pan Amer-
ican Highway Congress for studies regarding the
construction and financing of that portion of the
Pan American Highway known as "Tapon del
Darien."

e) Further study by the Organization and the
Economic Conference scheduicd to be held in
Buenos Aires in 1957 of the problem relating to
the financing of economic and social development
in the hemisphere. In this connection the Latin
American Representatives felt that there is a need
for the establishment of an inter-American insti-
tution for this purpose. They held that existing
international financial organizations are insuffi-
cient. The Representative of the United States
maintained that the resources still uncommitted
by existing public lending mstitutions are ade-
quate to meet effective demand and that more
brogress could be achieved by their utilization
than by the establislunent of new credit institu-
tions.

f) Creation of an inter- American technical
agency to assist, when requested, in the study of
"bankable" projects for economic development.

g) Elimination of tax and other obstacles to
the movement of private capital.

h) A meeting of high-level governmental ex-
perts to study the main aspects of the interna-
tional trade of the American Republics and to
make recommendations as to the manner in which
such trade might be expanded.

i) Further analysis by the Inter- American
Economic and Social Council of the factors which
determine maritime and river freight rates in
inter- American trade with a view to obtaining the
lowest possible freight rates consistent with ade-
quate service.

j) Expansion of the statistical services of the
Pan American Union.

k) Consideration by the Economic Conference
of the Organization of American States of prob-
lems related to foreign exchange.

1) Periodic meetings of high-level government
economic experts.

In the field of public health and social security
the Committee has recommended :

a) Support for the program for the total erad-
ication of malaria in the Americas planned by
the Pan American Sanitary Bureau.

b) Support of programs of the Pan American
Sanitary Bureau for control and eradication of
communicable diseases, and support for tlie ac-
tivities on nutrition carried out in the Americas
by the several international organizations con-
cerned with the problem.

c) Support and expansion of the Inter-
American Housing Center.

d) Studies by the Inter-American Economic
and Social Council that were requested in resolu-
tion XXXVI of the Tenth Inter- American Con-
ference, and in resolutions of other inter- Ameri-
can meetings, on the effect that the creation of a
Private Inter-American Bank for the Promotion
of Housing of Social Interest would have on a
coordinated solution of the liemisphere's problem
of housing of social interest.

e) Strengthening of the activities of the Or-
ganization of American States in the field of social
security.

In the education and technical cooperation
fields the following recommendations have been
made:

a) An increase in national efforts to combat
illiteracy and in the information and publication
services of the Organization in education, with a

June 24, 1957

1015

periodic evaluation of the effectiveness of these
services.

b) Initiation of a regular program of 500
scholarships, independent and apart from those at
present offered by tlie Goverimients and the Or-
ganization of American States.

c) Broadenmg and giving greater flexibility
to the program of teclmical cooperation of the
Organization of American States.

d) Increase of direct teclmical assistance to
member states by the general secretariat of the
Oi'ganization of American States.

The application of nuclear energy to peaceful
purposes was deemed to be of particular impor-
tance by the Committee, wliich has recommended
that there be established an Inter-American Nu-
clear Energy Commission which would serve as
a center of consultation on matters relating to that
subject, would lend assistance to the American
Republics in the development of a coordinated
plan of research and training in nuclear matters,
promote the coordination and augmentation of the
national programs on nuclear energy to meet the
needs of the inter-American community, and
might later study the advisability of the creation
of a specialized organization of the Organization
of American States that might, in the future, re-
place it. The Committee has further recom-
mended that the Pan American Sanitary Bureau
encourage the use of radioisotopes m medical
practice and draw up regulations for their safe
handling.

In the field of public relations, the Committee
has suggested tlie review and, if called for, the
strengthening of the public relations activities of
the Organization of American States and the
establisliment not only of local offices in all the
American Republics but also of national com-
mittees for the Organization of American States.

In considering organizational affairs the Com-
mittee has recommended a strengthening of the
Inter- American Economic and Social Council, re-
alinement of its work to permit greater attention
to trade in basic products, to tlie movement of pri-
vate capital, to transportation, and to social se-
curity. The Committee likewise recommended
that the services of the Department of Economic
and Social Affaira of the Pan American Union,
wliich serves as the secretariat of the aforemen-
tioned Council, be expanded and improved.

If all recommendations of the Committee are
implemented, the budgets of the Organization of

American States and its specialized agencies
would be increased by about $3,400,000 a year.
In addition, special (nonrecurring) costs would
amount to about $21,700,000.

The largest annual budgetary increases would
be for promoting the peaceful uses of atomic
energy, agricultural research and services, con-
tinuing and improving the program of the Inter-
American Housing Center, furnishing technical
assistance in the field of education, establishing
a new inter-American scliolarship program, and
increasing the continent-wide program of infor-
mation about the activities of the Organization
of American States.

The special (nonrecurring) expenditures would
be for the installation of equipment, for studies
which can be completed in 1 or 2 years, for build-
ings at the Inter-American Institute of Agricul-
tural Sciences, and for a continental program to
eliminate malaria in 5 years.

The total cost of eradicating malaria in the
Americas over the 5-year period is estimated at
$144,406,370. Subtracting from this the amounts
to be paid by countries outside the liemisphere
and the large amounts already appropriated or
to be financed by the countries in which malaria
exists leaves about $20,600,000 in additional in-
ternational funds which the Pan American Sani-
tary Organization will require for its work. The
Committee believes that a portion of this cost
might be met by other international organizations ;
so the amount which would be required of tlie
members of the Organization of American States
has not presently been determined.

With transmittal of the report to the Chiefs of
State of the American Republics, the Inter-
American Committee of Presidential Represent-
atives was automatically dissolved.

Tlie complete text of the report will not be
published until May 25, 1957, in order to provide
each Chief of State an opportunity to receive and
study it, and to issue it with sucli comments as
he may care to make.

The Representatives of the Committee have ex-
pressed their conviction tliat their recommenda-
tions, if carried out, will intensify the cooperation
among the nations of this liemisphere. Tliey be-
lieve further that this will bring fortli not only
practical advantages to the peoples of all America
in their search for better conditions of life but
will also strengthen the spiritual foundations of
the American communitv of nations.

1016

Department of State Bulletin

The Department of State and the U.S. Merchant Marine

ly Robert C. Hill

Assistant Secretary for Congressional Relations •

In celebrating Maritime Day throughout the
United States, we are not only paying tribute to
our merchant marine, the largest in the world ; we
are not only calling attention to the fact that it
earned $2.8 billion for the national economy in
1956 in helping to move abroad $23 billion in
American goods and services and in assuring the
import of materials and products necessary to our
record peacetime prosperity. We are also recall-
ing that shipping is a great American tradition.

It was not by accident that the first American-
built vessel was launched in the same year as the
founding of Jamestown. As you all know, we
are now celebrating the 350th anniversary of
Jamestown. Our virgin forests and fine natural
harbors assured a booming production and use
of American flag ships from colonial days, when
our struggling Nation was largely dependent upon
shipping its products and importing manufac-
tured goods.

Shortly after we attained our independence
came the Napoleonic wars, with consequent high
freight rates, destruction of the merchant tonnage
of other nations, and booming neutral trade. This
assured us a mighty merchant marine. By 1815,
the label "U.S. built," which usually meant New
England built, assured a premium in setting the
value of vessels for sale.

Those beautiful vessels known as the clipper
ships set world records for the expeditious and
safe delivery of cargo, and Yankee seamanship
and ingenuity were esteemed by maritime nations
the world around. Just before the Civil War
United States bottoms carried no less than 90 per-
cent of United States commerce.

You are all aware of the sad story of what hap-
pened thereafter. You know that the Civil War
destroyed 110,000 gross tons of private shipping

' Address made at the Maritime Day dinner of the
Maritime Association of the Greater Boston Chamber of
Commerce at Boston, Mass., on May 22 (press release 304
dated May 21).

and that panicky shipowners sold another 752,000
abroad, cutting our merchant marine in half. At
first we could not compete on iron hulls and steam.
From 1900 to 1905 only 9.9 percent of American
cargoes were carried in United States bottoms.

That the American flag flies over the biggest
merchant fleet in the world once again is primarily
the result of two factors : its enormous, amazing,
and forced expansion during AVorld War II and
our determination, as a national need and because
of the strained world situation, to keep it that
way. We must be assured of our own bottoms
to make certain that under any circumstances
we can import what we need and export our prod-
ucts, upon which the survival and betterment of
much of the free world depend.

Declaration on U.S. Maritime Policy

Congress is to be congratulated, in my opinion,
for its deep concern with keeping the American
flag paramount on the seas. The Merchant Ma-
rine Act of 1936 remains the declared maritime
policy of the United States, and Congress has done
everything in its power to implement its declara-
tion that:

It is necessary for the national defense and develop-
ment of Its foreign and domestic commerce that the
United States shall have a merchant marine (a) sufficient
to carry its domestic water-borne commerce and a sub-
stantial portion of the water-borne export and Import
foreign commerce of the United States and to provide
shipping service on all routes essential for maintaining
the flow of such domestic and foreign water-borne com-
merce at all times, (b) capable of serving as a naval and
military auxiliary In time of war or national emergency,
(c) owned and operated under the United States flag
by citizens of the United States insofar as may be prac-
ticable, and (d) composed of the best-equipped, safest,
and most suitable types of vessels, constructed In the
United States and manned with a trained and eflScIent
citizen personnel.

My own interest in this is a heartfelt one. As a
yoimgster, one of my first jobs was that of a laborer

June 24, 1957

1017

working on the first Liberty ships at the Todd-
Bath Shijibuilding Corporation at South Port-
land, Maine. Later I became an Assistant Vice
President of W. R. Grace and Company, which
operates the Grace Lines. As you can see, ship-
ping is in my blood.

Today I can state to you in this regard that
the United States has insisted upon the mainte-
nance in foreign affairs of two primary policies —
that the greatest freedom of movement be ac-
corded its vessels and that its flag have equal op-
portunity in, and access to, all ports of the world.
This represents the basis of United States ship-
ping policy. It is a result of historical growth
and experience, having its roots in our earliest
history as a nation.

Secretary Dulles has asked me today to extend
to you, as representatives of our great fleet of
ships today sailing the seven seas and discharging
cargoes in ports of every continent, his warmest
greetings. He has requested me to thank you for
your voluntary cooperation during the Suez crisis.
He has asked me to commend the industi-y for the
complex and difficult task it has performed of
getting essential oil to Great Britain and Europe
while the Suez Canal, intended to serve always
as a great international waterway for use of all
nations, has been blocked.

In the period between November 1, 1956, and
May 8 this year, a total of 93,300,000 barrels of oil,
of M'hich 51,300,000 were crude oil, were carried
to Europe. This represented almost exactly the
500,000 barrels a day planned and was a tremen-
dous achievement. In this our tanker fleet played
its full part.

May I add that we in your Government are all
proud of the almost unnoticed part you have
played in making certain that Europe was not
crippled by the temporary cutting off of oil from
the Middle East, where two-thirds of the free
world's oil reserves are located. International
communism was struck a bitter blow when you
proved that you could rise to the occasion and
move enough of the deficit to save the situation.

The Maritime Commission is primarily con-
cerned with the interests of domestic shipping
companies, builders, and the labor organizations;
the Defense Department with the security and
military defense aspects of shipping; and the
Treasury Department, through the Coast Guard,
is interested in the design and construction of
ships, their safety, and the enforcement of United
States regulations.

Only the Department of State is qualified prop-
erly to assess the foreign policy implications of
proposals regarding maritime shipping. And
only the Department of State has the authority
to consider or recommend proposed action on
grounds of foreign policy. Its Shipping Division
performs the valuable function of contributing to
this decision-making process.

The responsibility for reconciling domestic and
international conflicts of interest must be properly
discharged to the end that both the merchant ma-
rine and United States foreign policy are bene-
fited. State's Shipping Division, for instance,
performs important functions with regard to legis-
lation requiring that at least 50 percent of Gov-
ernment-generated cargoes must be carried on
American flag ships. It has had to explain to the
world that this applies only to lend-lease, mutual
aid, and other United States Government — and
not to commercial — cargoes. The Department of
State is now thoroughly behind this 50-50 policy.
You will recall that the Department at first op-
posed enactment of S. 3233, a bill which ultimately
became P. L. 664. But in 1956, during hearings
on S. 2584 on shipment of P. L. 480 (surplus dis-
posal) cargoes, the Department altered its posi-
tion. It did so after it had become clear that an
element of the merchant marine, particularly
tramp shipping, could not survive without the
50-50 policy.

It is fairly apparent now that the effect upon
world shipping of this policy is very small indeed,
and I assure you that the Department is not only
formally, but vigorously, behind this policy.

Role of Department of State

Because some of you are not aware of it, or have
been inclined to be critical, I should like to tell
you of the role of the Department of State today
in maritime matters of concern to you. The dif-
ferent functions in the Federal Government with
regard to shipping are reasonably clear.

Efforts To Eliminate Discrimination

The Department of State, moreover, is working
actively, day by day, to eliminate discrimination
against shipping. Our files reveal that we have,
in recent years, worked on bases of discrimination
in no less than 41 countries.

These discriminations have fallen into tlu-ee gen-

1018

Deparfmenf of State Bulletin

eral types: preferential treatment in ports, ex-
change controls, and bilateral trade agreements
specifying that cargo shipments bo made in ships
of the two countries involved to the exclusion of
United States and other third-country ships. Of
these, preferential treatment in ports represents
the most direct type.

This category includes higher port dues and
charges for pilotage, berthing, and light dues and
preferential berthing and use of storage and han-
dling facilities. Many less-developed countries,
seeking to create their own merchant marines,
have neglected to expand their port facilities ade-
quately. Local pressures sometimes, therefore,
cause national ships to be berthed, bunkered, and
cargoed first.

The Department of State, through its repre-
sentatives abroad, seeks constantly to eliminate
such discriminations as discriminatory exchange
controls and to encourage measures designed to
facilitate the free flow of goods and of inter-
national payments.

The Department also feels that restrictive
cabotage regulations are undesirable, such as
those which include farflung colonies in the domes-
tic trade of a country and require landing in the
mother country of goods for transshipment in na-
tional bottoms.

United States foreign economic policy is con-
cerned with the elimination of discriminations be-
cause of their adverse economic effects. Discrimi-
nations provoke reprisal and retaliation. Dis-
criminations usually result in the uneconomic
employment of the factors of production, leading
to overcapacity in the world shipping market,
diversion of traffic from low- to high-cost ship-
ping, and interference witli the world level of
freight rates normally established by the law of
supply and demand. They thus increase re-
straints on international trade.

Not only has State's Shipping Division been
active, making effective representations and set-
ting forth the United States position in many
specific cases, but it has participated in the exten-
sion of FCN [friendship, commerce, and navi-
gation] treaties providing for reciprocal most-
favored-nation treatment. A persuasive device
xists in the Department's ability to recommend
that waivei-s under Public Resolution 17 [73d Con-
gress] be refused to a discriminating country until
puch time as discriminations are removed. We
lave tried to correct situations without resort to

direct reprisals or measures of retaliation because
of the wider considerations always involved, and
we have been criticized by the industry for this.
The fact that we could do so if necessary is known
abroad, however. Because of vital political con-
siderations and the extensive system of coopera-
tion with our allies, the Department of State pre-
fers to utilize diplomatic negotiation as a method
of remedy. This has often achieved more satis-
factory results than reprisals could.

Wliat I do want to emphasize to my friends of
the industry is that today the Department of State
is thoroughly aware of your problems and that
they are not being submerged in a mass of other
matters with which the Department must deal on
a day-to-day basis.

Let me note in this connection that the Depart-
ment of State participates in conferences or
meetings, coordinates United States positions, in-
structs United States delegations, or closely fol-
lows the work of some 15 international organiza-
tions active in world maritime shipping matters.

Importance of Maritime Shipping

In a world where economic develo])ment, trade,
and full employment are pressing requirements
for political stability and, thus, for checking the
attempts of international communism to obtain
world sway, maritime shipping will continue to be
a vital interest of all governments.

I say bluntly that the United States intends to
maintain its place in w'orld maritime activity and
that it will take its full share of responsibility for
the increased cooperation, freedom of choice, and
economic health of the United States shipping
industry. The Department of State will continue
to play its role in this, well aware that the free-
dom of movement of cargoes and an enlightened
economic policy are essential to survival of the
free world.

Our great superiority, with our reserve ship-
ping, over twelfth-place Soviet Russia in merchant
shipping gives us a tremendous advantage in the
worldwide struggle between the free-enterprise
system and international communism. For our
shipping provides an important trade link be-
tween the free nations of the world on a day-to-
day basis which the Soviets cannot hope to meet.
This, I feel, is well worth stressing on this day
wlien we pay tribute to our merchant fleet and its
officers and men. It is more important today than
ever to keep our merchant marine strong.

lune 24, 1957

1019

Proposed Legislation for Payment to Denmark in Connection Witli Ships
Requisitioned in WorBd War II

Statement hy Under Secretary Flerter ^

I am indeed pleased that the committee is con-
sidering the draft legislation to authorize an ex
gratia payment in connection with the requisition-
ing by the United States of 40 Danish ships in
1941. This matter has been under discussion be-
tween the Governments of the United States and
Denmark during most of the intervening years,
and it would be in the interest of the United States
foreign relations to dispose of the matter finally
by making the payment which is being proposed.

It is clear that under United States domestic law
the Danes have no right to further compensation.
It is also clear to us that Danish authorities con-
sider that Danish riglits under international law
will remain outstanding if the proposed payment
is not effected and that the Danish Government
will in all probability request the United States
Government to submit the case to an international
tribunal. Submission of the case to an interna-
tional tribunal if tlie decision were adverse might
well result in a much greater cost to the United
States than the amount now put forward.

As the committee is no doubt aware from the
material accompanying the draft legislation, the
factual baclfground to the payment which the bill
would authorize is as follows:

Shortly after the enactment of Public Law 101,
77th Congress, the United States Government,
with the concurrence of the then Danish Minister
to the United States, requisitioned 40 privately
owned Danish vessels in the interest of the na-
tional defense. At the time of the requisitioning,
these vessels with one or two exceptions were, and
for some time had been, in United States ports,
and it was the desire of the United States Govern-

' Mmle before the House Committee on Foreign Affaii-.s
oil May 21 (press release :i06).

ment to see them returned to productive use in
international commerce, especially in view of the
heavy requirements for shipping whicli the war
in Europe had brought about. Despite the expec-
tation of the shipowners, expressed by the Danish
Minister in his note concurring in the requisition-
ing of tlie ships, that the ships be taken for use and
returned to their owners at the end of the war, the
national interest of the United States required
that they be taken for title. Public Law 17, 78th
Congress, which was enacted with the Danish
ships in mind, provided authority, however, for
the retroactive conversion of the taking for title
to a taking for use.

At the end of the war the owners of 35 of the
vessels negotiated settlement contracts with the
United States Government. Most of the pay-
ments due under these contracts were made to the
Danish owners in 1946 and 1947. The Danes
failed to collect any further amounts in the ensu-
ing 4 years, however, and in 1951 filed suits in tlic
Court of Claims. In 1956 settlements negotiate^!
between the United States and the owners were
incorporated into stipulated judgments of the
court, which in effect provided for full perform-
ance by the United States of the settlement con-
tracts, including compensation for breach of the j
contracts at the rate of 3 percent per annum as
specified in the contracts.

The owners of the remaining 5 ships had ii'
vessels afloat at the end of the war and were nol
under the same economic pressures as the owner?-
of the 35 ships, who sought the return of their ves
sels in order to put them to use in the postwar
trade, xifter protracted negotiations with the
United States Government which ended in the i
failure to reach agreement, the owners of the 5
ships ill 1947 brought suit in tlie Court of Claims to

1020

Department of State Bulletin

obtain compensation for the taking of their ships.
Stipulated judgments in 1952 were entered by the
court in these cases as the result of a compromise
settlement.

The Danish Government since the time of the
requisitioning of the ships has steadfastly main-
tained that the owners were due compensation
equal to that which American owners were en-
titled to for their vessels taken for use. The Dan-
ish Government has indicated that it, as well as the
owners, would have been content if the contracts
had been performed promptly, but full perfonn-
ance was not forthcoming. Therefore, once the
judgments in the Court of Claims cases i-elating to
the 35 ships had been rendei'ed in February 1956,
the Danish Ambassador renewed his request for
further payment over and above that specified in
the settlement contracts and the stipulated judg-
ments relating to the 5 ships. In subsequent dis-
cussions a compromise figure was reached which
the Danish Government has indicated would be
acceptable to it. That figure is the one set forth
in the bill, namely, $5,296,302.

Against this liistorical background, let us
examine the basis of the proposed payment. Con-
siderations of equity in the foreign relations of
the United States led the executive branch, upon
receiving the Danish request for further payment,
to consider an approach to the Congress to seek a
payment which when added to the amounts al-
ready paid would i-eflect the principle advanced
by the Danish authorities, and in fact consistently
maintained by them throughout the history of this
matter, namely, compensation on the basis of that
to which American owners were entitled for their
vessels taken for use during Vv'^orld War II.

The willingness of the U.S. to participate in
discussions of the problem on the aforementioned
basis is best explained by examining its two key
elements, namely, equal treatment and compensa-
tion for use, to determine why we consider the
Danish views in this rasi)ect are reasonable. This
requires some further recital of the historical facts
in the case.

Equal Treatment

Regarding the first key element, equal or na-
tional treatment for the owners, representatives
of the Danish Government have consistently main-
tained that at the time the ships were requisitioned
by the United States it was miderstood by the
Danish Minister and the Department of State

that Danish owners would receive such treatment.
The files of the Department of State do not appear
to contain any written record of such an under-
standing, but the historical record is such as to
support the Danish Government's belief.

The legislative history of Public Law 101, 77th
Congress, lends support to the belief. Senator
[Josiah W.] Bailey in explaining the provisions
of the measure to the Senate stated :

... It is extraordinary in the history of nations — it is,
I think, without jireeedent in the history of this nation —
that being at peace, we should undertake to requisition or
take title to ships of other nations with which we are
at peace, lying in our ports."

... I do not think we would be expected to pay more
to others than we pay to our own citizens, but I do think
that we would he expected to pay to otliers what we pay
to our own citizens. So in that respect the whole moral
phase of the matter of compensation is accounte<l for,
except possibly in one respect.^

The other respect referred to was Senator Bailey's
concern that the ships be returned at the end of
the war.

In the year following the requisitioning of the
ships, discussions took place between the repre-
sentatives of the ship owiiers and the executive
branch relating to arrangements for compensating
for the use of the vessels. While the discussions
were in progress, the President's approval of the
equal-treatment principle was sought and received.
The principal obstacle to concluding agreements
for payment for the vessels on a charter-hire basis
was the fact that the vessels had been requisitioned
for title.

An amendment to Public Law 101 accordingly
was proposed to the Congress and eventually was
incorporated in the measure which was enacted
as Public Law 17, 78th Congress. This amend-
ment authorized, in effect, the retroactive conver-
sion of the requisitions for title to requisitions for
use. In discussing this measure on the floor of
the Senate, Senator Bailey stated : *

I said here, at the time the requisition act in this case
was passed, that under the circumstances I have narrated
we were under obligation to treat the Kingdom of Den-
mark not only with justice, but with the utmost gener-
osity. I think a court of equity would impose such gener-
osity upon us. -\s I stated a moment ago, the man who
undertakes to administer upon an estate without right,
who, when someone dies steps in and takes charge of the
affairs of the decedent, is held to a far higher degree of

' 87 Cmiff. Roc, p. 402.5.
' 87 Cono. Rcc, p. 4027.
* 89 Cong. Rec, p. 1467.

June 24, 1957

1021

care and to a far greater degree of liability than the
executor who qualifies under a will or an administrator
who is appointed by the court, because he is acting of his
own power, he is acting arbitrarily, he is acting without
authority of the law ; and the i-ule of strict conduct and the
highest degree of care is applied to that type of executors.
Here was Denmark, stricken down and helpless. Her
ships were in our possession. We took them. It is vei-y
important to me that the United States of America shall
always present to all the other nations of the world the
spirit and the example of justice, of fairness, and of
generosity. If the amendment shall be adopted, the State
Department will be authorized to proceed with the Min-
ister from Denmark and, through him, with the owners
of these vessels with a view to treating them with absolute
justice, and generous justice at that.

Senator [Arthur H.] Vandenberg, in discussing
the bill said : =

... I held the amendment up temporarily because I
was in doubt about some of its terms, but in the final
analysis, when I received a personal letter from Assistant
Secretary of State [Adolf A.] Berle [Jr.] setting down
categorically the fact tliat this amendment does nothing
more than validate the promise made by the Government
of the United States to the utterly brave Danish Minister
who dared to stand out from under his home government
and take the responsibility in his own hands to deliver us
these 40 ships we needed, plus the delivery agreement —
when I discovered that this is nothing more than a valida-
tion of our promise to the Danish Minister under those
circumstances, I have no interest in what the amendment
may cost. The Danish Minister is entitled to 100-percent
reciprocity and good faith, in the presence of the cour-
ageous stand which he took, not only to his jeopardy, but
to our everlasting advantage.

The operative paragraphs of the letter referred
to from Assistant Secretary of State Berle, dated
February 3, 1943, read as follows :

The proposed amendment to S. 162 which I discussed
with you this morning will permit the fulfillment of an
understanding arrived at between this Government and
Henrik de Kauffmaun, the Danish Minister to this coun-
try, when the requisition of the Danish ships by the
United States took place in 1941.

The proposed legislation Is unique in that it provides
solely for the fulfillment of the moral obligation of the
United States incurred by the requisitioning of the Danish
vessels.

Senator Bailey later amplified his views as
follows : °

. . . The United States Government .should deal in so
large a matter through its State Department with the
representatives of the Danish Government in Washing-
ton. That is the proper procedure. I can assure the
Senator — I feel perfectly assured of it myself — that the
Danish Minister will protect the rights of the nationals

' 89 Cong. Rec, p. 1467.

• 89 Cong. Rec, pp. 1468 and 1469.

of his Government. I can assure the Senator that the
State Department feels — I think pretty much as I have
expressed myself here — that in this matter we must be
so just in our action that there will be no que.stion, there
will be no misgiving. I would never have agreed to sup-
port the bill authorizing the requisitioning under the cir-
cumstances unless I had had such assurance. When I
spoke on that sul)ject on the floor of the Senate I quoted
with a great deal of satisfaction some paragraphs from a
statement made by President Woodrow Wilson on the
same subject during World War I. It is my \iev/ that we
must put the owners of the ships and the Danish Govern-
ment in position to go ahead with business the moment
the war is over and the seas are clear.

We must not take any advantage of them, because we
took the ships, not by their consent, but by our power.
We took them on account of our own necessities, and not
theirs. We have used the ships. Let us now treat the
owners, not simply justly, as we might say with respect
to a defendant in court, but let us treat them so fairly that
the record of history will say that the Government of
the United States in its dealings under necessity may
exercise arbitrary power, but that we shall not fail to
make just and generous amends. That is the sort of
Government over which, I think, my flag flies. . . .

The effect of the amendment is to enable the Secretary
of State, by negotiation, and as the amendment is modi-
fied now, by consent of the owners, and with ceirtification
by the Secretary of State, to make a just settlement with
the Danish Government with respect to these ships. It
is in contemplation that when they are sunk they are not
to be paid for as if taken by title. We are to pay charter
hire and also carry the insurance, as well as pay for the
ship if lost while in our possession.

Mr. Berle, in a letter of July 20, 1953, to Senator
[Alexander] "Wiley reaffirmed that the United
States Government had assured the Danish Minis-
ter in 1941 that compensation for the use of the
ships would be paid on the same basis as the com-
pensation to which Americans would be entitled
for their vessels taken for use. He added that :

It was then, and is now, my opinion that this was the
least that tlie United States should have offered under
the circumstances. It was, in fact, no more than the
United States would be obligated to pay under inter-
national law, since the United States was then neutral
and Denmark was a friendly country, and there was no
absolute right of requisition. . . .

It was not considered necessary and should not have
been considered necessary by the Danish Minister to exact
a written agreement that the Government of the United
States would abide by international law in this matter.

We believe that the above constitutes strong
grounds for the Danisli expectations of equal
treatment.

Compensation for Use

The second key element relates to basing the

1022

Department of State Bulletin

payment on taking for use rather than taking for
title.

At tlie time that the United States desu'ed to
requisition the sliips in 1941 the United States was
not at war, and so it was considered desirable that
the requisitioning be concurred in by the then
Danisli Minister in his capacity as representative
of the Danish Government. As stated previously,
no formal agreement between the Minister and
the United States Government was made, nor does
there appear to be any written record of an under-
standing in the fdes of the Department of State.
However, in his note of May 22, 1941, to the Secre-
tary of State, the Minister in expressing his readi-
ness to coojjerate in the requisitioning of the sliips
stated :

... As I have had the honor to point out on numerous
occasions, Danish shipowners consider it to be of the
greatest importance, that the Danish ships in United
States ports be requisitioned, not for title, but only for
use, and that the ships be returned to the Danish owners
as soon as the i)resent emergency is over, adequate in-
surance cover to be given to enable owners to replace any
tonnage lost.

The Minister over the years has maintained that
in concurring in the requisitioning of the ships he
relied upon the United States Government taking
the ships for use and returning them to the owners
at the end of the war.

There can be little, if any, doubt that when the
Minister composed his note refen-ed to above he
was aware that Senator Bailey had stated in the
Senate on May 14, 1941,' that his committee under-
stood that a requisition for use meant the
following :

It is taking temporarily, for the purjrose of use, paying
compensation for the use, and with a view of the return
of the property taken.

As mentioned previously, former Assistant Sec-
retary of State Adolf Berle, who conducted the
negotiations with the Minister, stated in a letter
of July 20, 1953, to Senator "Wiley that the United
States Govermnent during those negotiations as-
sured the Minister that compensation for the use
of the ships would be paid on the same basis as
the compensation to which Americans would be
entitled for vessels taken for use. This has rein-
forced the conviction of the Danes that payment
should be based on use compensation.

The ships in fact were taken for title, however.

■ 89 Cong. Rec, p. 4026.
June 24, 1957

Despite this, Danish representatives, in a letter of
October 20, 1941, to Under Secretary of State
Sunnier Welles, and in a draft agreement which
they submitted to Under Secretary Welles June
17, 1942, indicated that they considered the owners
were due and should I'eceive compensation for the
use of the vessels rather than for the title to them.
As already explained, doubts as to the legality of
paying charter-hire for ves.sels requisitioned for
title led to a request to the Congress for authority,
which was granted in Public Law 17, to convert
the takings for title to takings for use, retroac-
tively to the time of the original requisition. The
passages already quoted from Senator Bailey's
speech and Senator Vandcnberg's speech to the
Senate show clearly that section 3b of Public
Law 17 was enacted with a view to enabling the
executive branch to pay use compensation for the
ships.

Even with the enactment of this legislative au-
thorization, the requisitions were not converted to
takings for use because under Public Law 17 this
required prior agreement between the United
States and the Danes regarding title values of the
ships. The problem of burden, which will be dis-
cussed shortly, and numerous other legal compli-
cations which resulted in protracted negotiations
lasting to the end of the war also proved to be
insuperable obstacles to the conversion. With the
end of hostilities, the Danish owners and their
Government desired the immediate return of those
of their vessels then afloat, only 16 of the 40 origi-
nally taken. The owners of these 16 ships ac-
cordingly negotiated settlement contracts cover-
ing these ships and the 19 lost ships belonging to
them in order to avoid delay in the return of their
vessels. The contracts provided lump-sum pay-
ments smaller than the owners claimed were
owing, and the Danes have since made it abun-
dantly clear that they did not consider the con-
tracts to represent the fair and equitable compen-
sation they understood they were to receive.

In view of the foregoing, it is considered that
the Danes have reasonable grounds for requesting
payment based on equal treatment and use com-
pensation.

The Five-Ship Case

The five ships not covered by settlement con-
tracts enter into the proposed payment to a rela-
tively small extent. The principle involved,

1023

however, is important. It has been mentioned
previously that, after efforts to negotiate settle-
ment contracts failed, the owners of these five ships
filed suits in the Court of Claims to obtain com-
pensation. Litigation continued from 1947 imtil
1952, when negotiated settlements were incor-
porated in stipulated judgments by the court.

One of the elements entering into the negotiated
settlement was the legal defense of the United
States relating to "burden," which derived from
circumstances surrounding the ships at the time
of their requisitioning in 1941. The United King-
dom had declared the ships to be technically enemy
vessels, due to Denmark's occupation by Germany,
and they accordingly were subject to seizure by the
British as prizes of war. In theory, this reduced
the value of the ships to a prospective purchaser,
compared to the value of similar ships not so sub-
ject to seizure. Burden accordingly was a factor
which had to be taken into account in arriving at
values for the Danish ships and therefore entered
into the defense of the United States in the Court
of Claims suits. In the process of negotiating a
settlement, the United States insisted upon a de-
duction of $300,000 from the otherwise agi'eed
compensation to reflect the burden of defense.

The view of the Department of State on the
burden question has consistently been that the
ships in effect were not burdened, and this view
was accepted in arriving at title values for the
ships early in 1946 for the purposes of the settle-
ment contracts offered to the ownei-s. The De-
partment of State has based its view on the follow-
ing considerations:

1. That, although the vessels were under threat
of capture as prizes of war by the British, such
Danish vessels as were captured were requisitioned
by the United Kingdom authorities out of the
prize courts, were paid charter-hire for their use,
and such as were afloat at the end of the war were
returned to their owners.

2. That, although the vessels were technically
enemy ships to the British and consequently sub-
ject to seizure, Denmark was not in fact an enemy
country but rather a friendly country conquered
and occupied by an enemy. The United States
was not even technically at war with Denmark at
the time although relations were strained. The
United States accordingly, as a matter of prin-
ciple, could not all'ord to take advantage of the
misfortunes of a friendly country by applying the

burden criteria so as to reduce the value of the
propeity of such a country's nationals requisi-
tioned by the United States.

The Danish Ambassador, dui'ing the negotia-
tions for a stipulated judginent on the five-ship
case, asked the Department of State to indicate
its position regarding the deduction for burden.
After ascertaining that the reduction was pro-
posed to be made "taking into account only the
strictly legal aspects of the case" and that "con-
siderations of international policy . . . could not
properly affect a settlement," the Department of
State informed the Danish Ambassador that it
would support legislation to restore the $300,000
burden deduction with interest at 4 percent a year.
Shortly afterward agreement on a settlement was
reached.

For the foregoing reasons, and having in mind
the official request of the Government of Den-
mark, the present proposed enabling legislation
was devised to authorize a lump-sum payment,
relating to all of the 40 ships, to the Government
of Denmark as a matter of legislative policy based
on considerations of equity in the foreign rela-
tions of the United States.

The amount of the payment proposed to be
authorized was arrived at as follows. The United
States Government has already paid to the Danish
owners for the 5 ships $4,112,395 pursuant to the
1952 Court of Claims judgments; for the 35 ships,
$28,018,294 pursuant to the settlement contracts,
plus $3,301,661 pursuant to the 1956 Court of
Claims judgments, making a total for the 35
ships of $31,319,955. The grand total already paid
for the 40 ships thus is $35,432,350.

A calculation was made of the amount that
would be payable, in respect of the 35 ships, on
the basis of the net compensation for use and/or
loss to which American owners of American vessels
taken for use in World War II would be entitled,
including interest at 4 percent per annum on prin-
ciple amoiuits from the time they became due
through December 31, 1956. To this was adde<l
the payment that would have been made for the |
five ships had the deduction for burden not been
made, including interest at 4 percent per anmun
on the $300,000 actually deducted. This pro- I
duced a total "equal treatment" figure of
$40,728,652.

Deilucting from tliis ''oquul treatment" total
tlu' amount already paid to the Dunes, i. e., |

1024

Department of State Bulletin

$35,432,350, there remains the amount pro])ose(l
to be authorized in the bill, namely, $5,'296,;>U'2.

The Danish Government has requested payment
of approximately $11,050,000. This higher figure
results from a different application of the concept
of equal treatment. The Danish Government, in
the spirit of friendly compromise, however, has
agreed to accept the proposed amount as a final
payment.

The history of relations between the United
States and Denmark has been long and friendly,
and the people of that small but courageous coun-
try have always merited our affection and esteem.
Cooj)eration in defense matters dates back to the
troubled days in 1941, when the Danish ^Minister
not only concurred in the unprecedented act of the
United States in requisitioning the ships of a
foreign nation in a situation short of war but also
had the courage to agree to the United States
assuming the defense of Greenland.** Both ac-
tions were taken in spite of the contrary instruc-
tions of the government of occupied Denmai'k and
were of great military importance to the United
States during World War II. The understand-
ings regarding the defense of Greenland became
one of the pillars of cooperation between the
United States and Denmark in Nato. of which
Denmark has been a member since its inception.

Only recently, when Denmark was threatened
by the Soviet Union with obliteration if Denmark
should be the base for a nuclear attack on the
U.S.S.E., the Government of Denmark in the
reply which Prime Minister [Hans Christian
Svane] Hansen made to the Soviet letter showed
its resolute detei-mination to maintain Denmark's
independence and to adhere to the principle of
collective defense under Nato. The United
States is proud to have such an ally.

The United States attaches great importance to
the maintenance of close and friendly relations
with Denmark, and we desire to remove the irri-
tant to those relations which the dispute regarding
these ships has brought about and which has been
the subject of correspondence between the two
Governments at the highest level. This desire is
reinforced by our conviction that equity and jus-
tice in international relations require a solution
such as proposed. The Department of State sup-
ports the proposed legislation.

Disappearance of U.S. Pilot
in Dominican Republic

STATEMENT BY ROY R. RUBOTTOM, JR.'

On the afternoon of December 3, 1956, Gerald
Lester Murphy, a United States citizen, left his
apai-tment in Ciudad Trujillo, Dominican Re-
public, and has not been seen or heard from since.
The American Embassy first learned of his dis-
appearance on December 5, and on December 6 re-
quested of the Dominican police that a search for
Mr. Murphy be initiated.

The Embassy also informed the Department of
State by telegram of Murphy's disapjDearance.
This infonnation was transmitted on December 7
to his parents, Mr. and Mrs. Lester Gerald Muiphy
of Eugene, Oregon. The Embassy the same day
also sent to the Department information then
available concerning Murphy's activities in the
Dominican Republic, on the basis of which the
Office of Security of the Department entered the
case. The Office of Security communicated the
information to the Department of Justice and to
other United States investigative agencies. Close
liaison was established with these agencies on a
continuing basis.

On December 10 Dominican police gave the
Embassy a first report dated December 8. It
stated that Murphy's car had been found early in
the morning of December 4, abandoned off the
highway near the sea. Presiuning it to have been
stolen, the police had sent a notice to Murphy's ad-
dress requesting that the car be picked up.
Murph}' not having returned home by December
6, the car was towed to police headquarters and
an intensive search begun, the report stated.

Based on information leceived from the Em-
bassy, security officers of the Department on De-
cember 11 interviewed Murphy's fiance, Sally
Caire, in Miami. On December 15, the iVmeiican
Ambassador told Secretai-y of State Without Port-
folio Manuel de Moya, Attorney General Fran-

' For background and text of agreement relating to the
defense of Greenland, see Bulletin of Apr. 12, 1941, p. 443.

June 24, 3957

^ Made available to the Senate Foreign Relations Com-
mittee on Jlay 29 (press release 324). Mr. Rubottom is
Acting Assistant Secretary for Inter-American Affairs.
His statement, released during the committee's hearings
on his nomination to te Assistant Secretary, is in response
to a request from Senator Morse that a full rei>ort of the
Department's activities in the Gerald Murphy case be
made public.

1025

Cisco Elpicio Beras, and Chief of Police Antonio
Hart that the United States Government took a
"very serious view" of the case and was assured
that "the most detailed investigation possible"
would be carried out by the Dominican authorities.
Two days later, while the attorney general was at
the American Embassy again discussing the case,
Murphy's father and Miss Caire called at the Em-
bassy following their arrival in Ciudad Trujillo.
They talked to tJie attorney general and were fully
informed of all developments in the case to date by
Embassy officei-s.

On December 20 the Embassy sent a note to the
Dominican Ministry of Foreign Affairs expressing
its concern over the still imresolved disappearance
of Murphy. Again, on December 31, the Ministry
told the Embassy that inquiries "are taking place
with the rapidity and zeal required" and that,
when complete, a copy of the police report would
be furnished.

Among those taken into custody for questioning
by the Dominican autliorities was Octavio de la
Maza, a Dominican pilot for the Dominican air-
line Compania Dotninicana de AvlaciSn (CDA).
Murphy had been a CDA copilot from April 1956
until he resigned in late November purportedly to
return to the United States.

At noon on Januarj' 7, 1957, the American
Charge d'Affaires ad interim was informed by the
Dominican attorney general that De la Maza had
coimnitted suicide in his cell at aromid 4: o'clock
that morning, and that De la Maza had left a sui-
cide note admitting he was responsible for having
pushed Murphy mto the sea in a fight and that he
was killing himself out of remorse. The charge
was shown the puiported note and given a type-
written copy. On January 8 he visited the jail
cell where De la Maza allegedly had hanged liim-
self. The following day he requested the Do-
minican Government for (1) the loan of the
original suicide note; (2) a copy of the tran.script
of police questioning of De la Maza prior to his
death; (3) a copy of the death certificate ; and (4)
a copy of the autopsy report, if any.

The charge called on the Minister of Foreign
Affairs on January 16 to deliver a note recalling
the Dominican note of December 31, which prom-
ised a copy of the Dominican police report then
under preparation. He also asked for the
"fullest possible" report from the Dominican au-
thorities on Murphy's activities in the Dominican
Eepublic which might shed light on a motive for

1026

his disappearance. The note stated that the
United States Government could not, on the basis
of information available to it, accept the Domini-
can Government's position that Murphy's disap-
pearance was solved by De la Maza's confession.

On January 28 the Ministry furnished the
Embassy (1) a chronological list of Murphy's
flights as a CDA copilot from April 21 through
November 19, 1956, showing destinations and the
name of the pilots in charge, and (2) photostatic
copies of the official De la Maza death certificate.

On February 9 the Dominican Foreign Minis-
ter, in the company of the attorney general, gave
the Ambassador the following additional docu-
mentation: (1) a report by the attorney general
to the Foreign Minister summing up the official
Dominican inquiry into the disappearance of
Gerald Lester Murphy; (2) transcripts of police
interrogations in connection with the ^lurphy
case; (3) transcripts of police interrogations in
connection with the De la Maza case; (4) photo-
stats of the suicide note attributed to De la Maza,
accompanied by an analysis prepared by a Spanish
expert attesting, on the basis of comparison with
purported specimens of De la Maza's handwriting,
that the suicide note was genuine; (5) the formal
opinion by the Dominican examining magistrate
closing the case of Gerald Lester Murphj' with
the finding that he was murdered by De la Maza ;
(6) the formal opinion by the Dominican examin-
ing magistrate closing the case of Octavio de la
Maza with the finding that he committed suicide ;
and (7) other miscellaneous documents, such as
the bill of sale of INIurphy's car, the i-eport of the
search and sealing* of Murphy's apartment, and
medicolegal and autopsj' reports on De la Maza.
On February 13 the Dominican Ministry of For-
eign Affairs furnished three photostatic excerpts
of Scotland Yard reports on the detention of De la
Maza for drunken driving while he was Domini-
can Air Attache in London.

The Dominican Ambassador to "Washington was
informed on February 21 that the Department did
not consider the Murphy case closed. The Depart-
ment's position was set forth in a note delivered
in Ciudad Trujillo to the Dominican Government
on March 16." It stated that, if the specimens of
handwriting submitted by the Dominican authori-
ties as being of De la Maza were actually his, tlien
the suicide note was not written by De la Maza.

" Bulletin of Apr. 15, 1057, p. Gil.

Departmenf of State Bulletin

It furtlier noted that, contrai-y to official Domini-
can findings, tlie Department had evidence whicli
indicated that Murphy (1) was well acquainted
with high Dominican officials, and (2) was ap-
parently enjoying an income beyond his monthly
salary of $350 as a CDA copilot. After express-
ing the j:\jnerican Government's grave concern
over Murphy's disappeai-ance, the note stated that
the United States considered the Murphy case
as unsolved and requested the Dominican Gov-
ernment to "reopen and vigorously pursue its
investigation."

The Dominican Government replied to the note
of March 16 in three successive notes.^ On March
29 it stated that further investigations had con-
firmed its previous view that Murphy had no more
than "ordinary and casual contact" with Domin-
ican officials. The note contained a statement at-
tributed to Brigadier General Arturo R. Espail-
lat, who was Under Secretary of State for the
Armed Forces in the Dominican Republic until
becoming Dominican Consul General in New York
and Alternate Representative to the United Na-
tions in May 1956. General Espaillat declared
that he had known Murphy in Ciuclad Trujillo as
a pilot of the Compafiia Dominicana de Aviacion
in tlie same way that he knew all the other Ameri-
can pilots of CDA, as well as a large number of the
American colony in Ciudad Trujillo. On April
4 the Dominican Government stated that addi-
tional investigations had led its attorney general
to conclude that Murphy did not have large sums
of money during hig stay in the Dominican Re-
public, nor did his income exceed his salary as a
CDA copilot. On April 13 the Dominican Gov-
ernment stated that it continued to consider valid
the findings of a Spanish handwriting expert that
the suicide note attributed to De la Maza was
actually written by him. For the Dominican Re-
public to accept as conclusive in this matter an
opinion to the contrary by agencies of a foreign
power would be equivalent to abdicating its
sovereign rights as a state, the Dominican note
concluded.

In the meantime, on ISIarch 29, the Department
received from Murphy's parents a bank draft
from the Banco de Reservm de Ja Republica
Dominicana in the amount of $35,000 payable to
Lester Gerald Murphy and which was described
as the award (less attorneys' fees) made by a
Dominican court as a result of a civil suit brought

' Not printed.

June 24, 1957

by the Murphy family against the De la Maza
estate. On the same date the Department returned
the draft to Mr. and Mrs. Murphy with the ex-
planation that a civil action in a foreign court is
a private matter.

The United States Government delivered its
latest note in the Murphy case to the Dominican
Ambassador in Washington on May 2. Citing the
investigation into Murphy's activities in the
United States prior to his disappearance, the note
stated that "sufficient evidence has now been un-
covered to indicate that Mr. Murphy may have
been connected with the disappearance of Dr.
Jesus de Galindez in New York on or about March
12, 1956, acting on behalf of or in association with
certain Dominican and American nationals." The
Dominican Ambassador was further informed
that the name of Arturo R. Espaillat figured re-
peatedly in this investigation. In view of official
Dominican statements of willingness to cooperate
in solving Murphy's disappearance, as well as
similar personal assertions by General Espaillat,
the United States note declared that it appeared
"desirable and appropriate" that the General's
diplomatic immunity be waived by the Dominican
Government "in order that he should be amenable
to the usual and lawful procedures in matters of
investigation and trial" in the United States. No
reply to this note has yet been received from the
Dominican Government.

On May 4 General Espaillat returned to the
Dominican Republic. The Department is in-
formed that General Espaillat has since assumed
the office of Secretary of State Without Portfolio
and that a successor to him has been named as
Dominican Consul General in New York and
Alternate Representative of the Dominican Re-
public to the United Nations.

The Department is continuing its investigation
into the disappearance of Mr. Murphy by all
available means, maintaining close liaison with
the Department of Justice.

TEXT OF U.S. NOTE OF MAY 2

Excellency: I have the honor to refer to the
case of Gerald Lester Murphy, an American
national who disappeared in Ciudad Trujillo on
December 3, 1956. The Department of State has
received through the American Embassy in Ciudad
Trujillo copies of Notes No. 7584, 8129 and 9117

1027

of March 29, April 3, and April 13, 1957, respec-
tively, from the Department of State for Foreign
Affairs and Worship of the Dominican Republic
in response to the Embassy's Note No. 382 of
March 16, 1957, requesting Your Excellency's
Government to reopen and vigorously pursue its
investigation of the disappearance of this citizen
of tlie United States.

While Your Excellency's Government has been
conducting its investigation in the Dominican
Republic, the United States Department of Jus-
tice and other appropriate agencies of my Gov-
ernment have been inquiring into the activities
of Mr. Murphy in the United States prior to his
disappearance. While these inquiries are still in-
complete, sufficient evidence has now been uncov-
ered to indicate tliat Mr. Murphy may have been
comiected with tlie disappearance of Dr. Jesus de
Galindez in New York City on or about March
12, 1956, acting on behalf of or in association with
certain Dominican and American nationals.

I am certain that Your Excellency's Govern-
ment, mindful of its repeated statements of will-
ingness to cooperate in solving the disappearance
of Mr. Murphy, will feel disposed to cooperate
in every possible way in resolving the questions
which remain in doubt concerning the identity
of any associates of Mr. Murphy, in the investi-
gation being undertaken within the jurisdiction
of United States authorities.

In the course of the investigation of tlie Murphy
case, the disappearance of Dr. de Galindez, and
related matters, the name of the Honorable Ar-
turo Espaillat, Consul General of Your Excel-
lency's Government in the City of New York
and also Alternate Representative of the Domini-
can Republic to the United Nations, with the
rank of Minister, has figured repeatedly. How-
ever, Minister Espaillat's diplomatic status as
a Representative before the United Nations in-
hibits otherwise usual and lawful procedures in
matters of investigation and trial.

In view of Minister Espaillat's publicly ex-
pressed desire of assisting in clearing up the Mur-
phy case, and also the expressed interest of Your
Excellency's Government in solving a matter in
which there is already considerable public inter-
est, my Government considers that it would ap-
pear desirable and appropriate that Minister
Espaillat's immunity be waived in order that he
should be amenable to the usual and lawful pro-
cedures in matters of investigation and trial.

Accept, Excellency, the renewed assurances of
my highest consideration.

For the Acting Secretary of State :
Rot R. Rtjbottom, Jr.

Acting Assistant Secretary
for Inter- American Affairs

His Excellency

Senor Dr. Joaquin E. Salazar,

Amhassador of the Dominican Republic.

Congressional Documents
Relating to Foreign Policy

85th Congress, 1st Session

Permitting the Appointment of an assistant Secretary of
State for African Affairs. Report to accompany S. 1832.
S. Rept. 22.3, April 0, 19.57. 3 pp.

Petroleum Survey : 1957 Outlook, Oil Lift to Europe, Price
Increases. Preliminary Report of the House Committee
on Interstate and Foreign Commerce pursuant to section
136 of the Legislative Reorjranization Act of 1U46, Public
Law, 601, 7!)th Cong., and II. Res. 99, 8.5th Cong. H.
Rept. 314, April 9, 19.57. 48 pp.

Protocol to the International Convention for the North-
west Atlantic Fisheries. Report to accompany Execu-
tive F, S5th Cong., 1st sess. Exec. Rept. 1, April 10, 1957.
2 pp.

Washington State Sixth International Trade Fair. Report
to accompany H. J. Res. 126. S. Rept. 230, April 12,
1957. 2 pp.

Departments of State and Justice, the Judiciary, and
Related Agencies .\ppropriation P.ilt, Fiscal Year 1958.
Report to accompany H. R. 6871. H. Rept. 351, April
12, 1957. 31 pp.

1028

Department of State Bulletin

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Syrian Complaint Against Israel
Considered by Security Council

Following are the texts of two statements made
in the U.N. Security Council on May 28 hy Am-
bassador Henry Cabot Lodge. In his first state-
ment Mr. Lodge spoke as U.S. Representative to
the United Nations, in his second as President of
t/ie Security Council.

FIRST STATEMENT BY MR. LODGE

U.S. /U.N. press release 2682 dated May 28

The United States has examined careful Ij- the
complaint of the Government of Syria ^ that the
recent constniction of a bridge in the central sector
of the Israeli-Syrian demilitarized zone constitutes
an undertaking of military activity in violation of
article V, paragraph 5 (a) , of the Armistice Agree-
ment and a threat to the peace. It has noted that
the Acting Chief of Stall' of the United Nations
Truce Supervision Organization in Palestine in-
spected the bridge at the i-equest of the Govern-
ment of Syria, which also asked that he stop the
constniction which that Government stated was
illegal.

In his report of April 20,^ the Acting Chief of
Staff stated that, although the bridge could be
used for military purposes, he was satisfied, after
his personal investigation on the spot, that the
bridge was built in connection with the Huleh rec-
lamation project. He therefore did not feel that
he would be justified in a.sking for the removal of
the bridge. He pointed out that such a request
would have to be based on the assumption that the
bridge would be used for military purposes in
violation of the General Armistice Agi'eement, an
assumption which he did not feel he was entitled
to make.

The Acting Chief of Staff also reported that the
bridge does not affect the interests of any Arab
civilians in the zone.

'U.N. doc. 8/3827.
= U.N. doc. S/3815.

June 24, 1957

Under article V of the Armistice Agreement, the
Chief of Staff, as chairman of the Mixed Armistice
Commission, is responsible for insuring that the
armistice provisions for tlie demilitarized zone are
fully carried out. This authority has been recog-
nized by the Security Council in its resolution of
May 18, 1951.^ If it is thought by either of the
parties that the Chief of Staff has acted incor-
rectly in any matter, the parties can bring the
matter before the IMixed Armistice Commission,
to which (hey have given the power, under article
VII of the Annistice Agreement, to decide dis-
putes concerning the application of that agree-
ment and to interpret it.

We are fully cognizant of the fact that the Mixed
Armistice Commission has not met since 1951. But
this fact does not relieve either party from making
every effort to resort to the Mixed Armistice Com-
mission procedures before coming to the Security
Council. AVe continue to hold that the Mixed
Armistice Commission should function. If no re-
course is had under the provisions of article VII,
the decision of the Chief of Staff' must liold.

Having considered all the available facts in the
present case, the United States believes that the
report of the Acting Chief of Staff is fully re-
sponsive to the Syrian request.

The Repi-esentative of Israel [Mordecai R.
Kidron] on Tlaursday [May 23] stated tliat, since
the truce had been replaced by the Armistice
Agreement, neither party may invoke purely mili-
tary considerations in the demilitarized zone. The
demilitarized zones, he stated, are "areas from
which military forces are excluded and nothing
more."

The United States does not share this view.
Article V of the Armistice Agreement, as I al-
ready have said, gives the Cliief of Staff responsi-
bility for the full implementation of the armistice
provisions relating to the demilitarized zone. Sec-
tion 2 of this article states that the demilitarized
zone has been defined "with a view toward sepa-
rating the armed forces of the two parties in such

' Bulletin of June 4, 1951, p. 916.

1029

a manner as to minimize the possibility of friction
and incidents, while providing for the gradual
restoration of normal civilian life in the area of the
Demilitarized Zone, without prejudice to the ul-
timate settlement."

In 1953 the Chief of Staff requested the cessa-
tion of work in the demilitarized zone which, in
his opinion, affected the protection of normal
civilian life within the area and the military value
of the zone. Military considerations were thus
clearly asserted by the Chief of Staff as among the
matters for which he is responsible imder the
Armistice Agreement. The United States sup-
ported him in this, as did the majority of members
of the Security Council.

The United States position on the authority of
the Chief of Staff in the demilitarized zone was
also explained fully at that time.* I would like
to restate it now :

First, strict compliance with the armistice agreement
entered into between Israel and Syria is of vital impor-
tance to the peace of the area and this question is
intimately involved in the present case.

Second, the primary responsibility of the Security
Council in this matter is to uphold that armistice agi-ee-
ment which it endorsed in its resolution of 11 August
1949 as superseding the truce and facilitating the transi-
tion to permanent peace. The agent of the Security
Council for these purposes is the Chief of Staff of the
Truce Supervision Organization.

Third, development projects which are consistent with
the undertakings of the parties under the armistice
agreement and which are in the general interest and
do not infringe upon established rights and obligations
should be encouraged. . . . The Chief of Staff, as the
authority responsible for the general supervision of the
demilitarized zone, is the proper authority to determine
whether the project now in question meets these condi-
tions. Any unilateral action, from whatever side, which
is not consistent with this authority of the Chief of
Staff threatens the effective operation and enforcement
of the armistice agreement. Similarly, no government
should, in our opinion, exercise a veto power over legit-
imate projects in the demilitarized zone.

While the Acting Chief of Staff's report in the
present case answers the question raised by the
Government of Syria about the bridge, it does
raise a number of other questions which are of
interest to the Security Council and which the
report does not answer.

For example: (1) The report indicates that the
chairman of the Mixed Armistice Commission
and tlte United Nations military observers en-
countered initial opposition from the Government

' Ibid., Jan. 11, 1954, p. 58.
1030

of Israel. The Acting Chief of Staff suggests, |
in the light of this experience, the advisability
of reaffirming the powers of the chairman of the
Mixed Armistice Conmiission and of tlie United
Nations military observers in the demilitarized
zone.

It is obvious from the report of April 20, 1957,
that the Acting Chief of Stafl''s authority has
not been fully respected and that he consequently
has not been able to discharge fully his responsi-
bilities in the demilitarized zone. This prompts
me to make this observation : that efforts to limit
the freedom of movement and access of the chair-
man of the Mixed Armistice Commission and the
United Nations military observers in any sector
of the demilitarized zone are matters of serious
concern to the United States as thej' should be to
all members of the Council and to the parties to
the General Armistice Agreement.

The suggestion from the Acting Chief of Staff
that his authority should be reaffirmed is clearly
in order. His authority must be respected by
the parties, who should extend to him full co-
operation and help in any practical arrangements
he may consider necessary to the exercise of his
authority.

(2) The report also shows that the Acting
Chief of Staff found that an area on the western
approaches to the bridge had been mined in con-
travention of the Armistice Agreement. He re-
ported he was taking steps to have the mines
removed, and the Representative of Israel has
informed the Council that these mines have been
taken away.

(3) The report further indicates that the Act-
ing Chief of Staff inspected only certain portions
of the demilitarized zone. AVliether this was
through liis own choice or because he was pre-
vented from doing so has not been made clear.

Inasmuch as these questions remain outstand-
ing, the United States believes it would be of value
to the Council to have from the Acting Chief of
Staff" an up-to-date report on current conditions
throughout the zone, including its policing, his
freedom of access, and any practical arrange-
ments he may consider necessary to carry out his
responsibilities. "We believe that he should un-
dertake such a complete survey so that we may be
assured that conditions in the zone are those which
the Armistice Agreement calls for. We hope
that both parties to the Armistice xVgreement
will give him their full cooperation.

Department of State Bulletin

The aim of the Security Couiu-il must be to
assure a peaceful situation. The Armistice
Agreement and the United Nations personnel in
the area are crucial— in fact indispensable — ele-
ments in achieving this objective. All parties
sliould cooperate fully in making it possible for
the United Nations representatives to fulfill their
tasks. This is indispensable to achieving peace
and order, whicli is vital to Israel and her
neitchbors.

overriding objective. The United Nations and
its representatives can continue to make an im-
portant contribution to this end. To do so, it
needs the full cooperation of the governments
concerned.

U.S. Delegations to
International Conferences

SECOND STATEMENT BY MR. LODGE

U.S. /U.N. press release 2683 dated May 28

The Council has considered the commimication
from the Representative of Syria and the report
of the Acting Chief of Staff of the Truce Super-
vision Organization in Palestine. It has heard
the Representatives of Syria [Rafik Asha] and
Israel and all members of the Council have jire-
sented their vievrs.

All members of the Council appear to agree
that the authority of the Chief of Staff of the
Truce Supervision Organization should be re-
spected and that the parties should cooperate
with it. It was noted that in the instance before
us he was delayed in his inspection of the bridge
and in discharging other duties.

Some members of the Council made it clear that
they did not agree with the decision of the Acting
Chief of Staff on the right of Israel to build a
bridge. However, the majority have pointed out
that the Chief of Staff is the proper authority for
insuring full implementation of the provisions of
article V of the Armistice Agieement and have
supported his decision. The parties have been
asked to cooperate fully with the Acting Chief
of Staff and to assist in any practical arrange-
ments that he might feel necessary in carrying
out his responsibilities.

Note has also been taken of references in the
report by the Acting Chief of Staff to other prob-
lems in the demilitarized zone, and the majority
of members have suggested that the Acting Chief
of Staff submit an additional report at the proper
time concerning conditions in the zone, including
his freedom of access, and so forth. Various in-
quiries have been made which might be covered
in such a report.

In this case it is clear that the achievement of
better conditions in the Near East is the Council's

International Labor Conference

The Department of State announced on May
31 (press release 331) that the United States will
be represented by the following tripartite delega-
tion consisting of representatives of the Govern-
ment, of the employers, and of the workers of
the United States at the 40th session of the Inter-
national Labor Conference to be held at Geneva,
June 5-27 :

Representing the Government of the United States

Delegates

J. Ernest Wilkins, Assistant Secretary of Labor

Francis O. Wilcox, Assistant Secretary of State

Alternate Delegate

A. Henry Thurston, Special Assistant to the Assistant

Secretary for Domestic Affairs, Department of

Commerce

Congressional Advisers

Samuel K. McConnell, Jr., House of Representatives

Cleveland M. Bailey, House of Representatives

Advisers

Thomas D. Bowie, Office of International Economic and

Social Affairs, Department of State
Charles C. Pinch, Labor Adviser, Bureau of Near Eastern,

South Asian and African Affair-s, Department of State
Selene Gifford, Assistant Commissioner, Bureau of Indian

Affairs, Department of the Interior
John J. Gilhooley, Special Assistant to the Secretary of

Labor
Howard Jenkins, Chief, International Labor Affairs

Branch, Office of the Solicitor, Department of Labor
Joseph E. Johnson, Consultant to the Secretary of Labor
Mrs. Alice K. Leopold, Assistant to the Secretary of

Labor for Women's Affairs
Otis E. Mulliken, Deputy Director, Office of International

Economic and Social Affairs, Department of State
Edward B. Peterson, Director, Department of Labor and

Industrial Relations, Hawaii
David H. Popper, Deputy U.S. Representative for Inter-
national Organizations, American Consulate General,

Geneva, Switzerland
Stuart Rothman, Solicitor, Department of Labor
Philip Sullivan, Labor Adviser, Bureau of Far Eastern

Affairs, Department of State

June 24, 1957

1031

George Tobias, Attach^ for International Labor Affairs,

American Consulate General, Geneva, Switzerland
Arnold Zempel, Executive Director, Office of International

Labor Affairs, Department of Labor
Juan de Zengotita, Area Specialist for Latin America,

Office of International Labor Affairs, Department of

Labor

Repeesentinq the Employers of the United States

Delegate

Cola G. Parker, Director, Kimberly-Clark Corporation,
Neenah, Wis.

Advisers

John S. Bugas, Vice President, Ford Motor Co., Dear-
born, Mich.

Austin T. Foster, Director, Socony Mobil Oil Co., New
York, N. Y.

Raymond H. Nichols, Editor and Publisher, The Vernon
Daily Record, Vernon, Tex.

Mrs. Sybyl S. Patterson, Associate Director, Industrial
Relations Division, National Association of Manu-
facturers, New York, N. Y.

Frank H. Terrell, Terrell, Hess, Van Asdol, and Ma-
gruder, Kansas City, Mo.

William G. Van Meter, Attorney, Labor Relations and
Lesal Department, Chamber of Commerce of the United
States. Washington, D. C.

W. H. Winans, Larchmont, N. Y.

Representing the Workers of the United States

Delegate

George P. Delaney, International Representative, AFL-
CIO, Washington, D. C.

Advisers

Elmer Cope, International Representative on Econom-
ics and International Affairs, United Steelworkers of
America, Washington, D. C.

A. H. Cronin, Vice President, Sheet Metal Workers In-
ternational Union, Chicago, 111.

Gordon M. Freeman, President, International Brother-
hood of Electrical Workers, Washington, D. C.

Toney Gallo, Secretary-Treasurer, United Cement, Lime,
and Gypsum Workers International Union, Chicago, 111.

Emil Rieve, Chairman, Executive Council, Textile
Workers Union of America, New York, N.Y.

George L. P. Weaver, Executive Secretary, Civil Rights
Department, AFL-CIO, Washington, D.C.

Secretary of Delegation

John R. Bartelt, Jr., Office of International Conferences,
Department of State

The International Labor Conference is the prin-
cipal policymaking organ of the International
Labor Organization (Ii-o), which is a specialized
agency of the United Nations and now comprises
78 member countries.

The agenda for the 40th session of the Con-
ference includes: (1) the report of the Director-

General of the International Labor Office; (2)
approval of the Ilo budget for 1958; (3) discus-
sions on proposed international standards con-
cerning forced labor, weekly rest in commerce
and offices, and protection and integration of in-
digenous and other tribal and semitribal popula-
tions in independent countries; and (-1) discus-
sions on discrimination in tlie field of employ-
ment and occupation and on conditions of em-
ployment of plantation workers.

The report of the Director-General will deal
with the social implication of technological
change, particularly automation and industrial
uses of atomic energj^ as well as with social de-
velopments of interest to Ilo and with an account
of Ilo activities during the j'ear.

At the Conference new members representing
governments, employers, and workers will be
elected to the Governing Body.

TREATY INFORMATION

Current Actions

MULTILATERAL

Atomic Energy

Statute of the International Atomic Energy Agency.
Done at New York October 26. 1956.'
Ratification deposited: Union of South Africa, June 6,

T.Cm.

Cultural Property

Convention for protection of cultural property In event
of armed conflict, and regulations of execution. Done
at The Hague May 14, 1054. Entered into force Au-
gust 7, 1956."

Ratification deposited: Byelorussian Soviet Socialist
Republic, May 7, 1957.

Protocol for protection of cultural property in event of

armwl conflict. Done at The Hague May 14, 1954.

Entered into force August 7, 1956."

Ratification deposited: Byelorussian Soviet Socialist

Republic, May 7, 1957.

Fisheries

Protocol amending the international conventii>n for the
noitliwest Atlantic fisheries of February J<, 1919 (TIAS
2089). Done at Washington June 25, 19.56.
Ratification deposited: Italy, June 7, 1957.

Telecommunications

International teleconununication convention. Signed at

Not in fiirce.
' Not in force for the United States.

1032

Department of State Bulletin

Buenos Aires December '2'2, 19512. Entered into force
January 1, 1954. TIAS 32(!6.

Ratiticutions deposited: Brazil, April 20, 1957; Guate-
mala, May 1, 1957 ; Syria, Slay 1, 1957.
Accession deposited: Ghana, May 17, 1957.
(Final protocol to the international telecommunication
convention. Signed at Buenos Aires December 22,
1952. t^ntered into force January 1, 1954. TIAS
3266.

notifications deposited: Brazil, April 2G, 1957; Guate-
mala, May 1, 1957 ; Syria, May 1, 1957.
Additional protocols to the International telecommuni-
cation convention. Signed at Buenos Aires December
22, 1952. Entered into force December 22, 1952.
Ratifications deposited: Brazil, April 26, 1957; Guate-
mala, May 1, 1957 ; Syria, May 1, 1957.

Trade and Commerce

Fifth protocol of rectilications and modifications to texts
of schedules to the General Ajrreement on Tariffs and
Trade. Done at Geneva December 3, 1955.'
Sif/iiatiirc: Canada, April 27, 1957.

Whaling

Protocol amending the international whaling convention
of 1946 (TIAS 1849). Done at Washington November
19, 1956.'
Ratification deposited: Sweden, June 6, 1957.

Wheat

International wheat agreement, 19.56. Open for signa-
ture at Washington through May 18, 1956. Entered
into force July 16, 19.56, for parts 1, 3, 4, and 5, and
August 1, 1956, for part 2. TIAS 3709.
Notification by Federal Republic of Germany of ap-
plication to: Land Berlin (effective date the same as
that for the Federal Republic, i. e., July 16, 1956, for
parts 1, 3, 4, and 5, and August 1, 1956, for part 2).

BILATERAL

Canada

Protocol to the convention for the protection, preserva-
tion, and extension of the sockeye .salmon fisheries in
the Eraser River system of May 26, 19.30 (50 Stat.
1355). Signed at Ottawa December 28, 1956.'
Senate advice and consent to ratification given: June
6, 1957.

China

Agreement amending the agreement of May 14, 1954, re-
lating to the loan of small naval craft to China, as
amended (TIAS 2979, 3215, 3346, 3676). Effected by
exchange of notes at Taipei May 16, 1957. Entered
into force May 16, 1957.

Iraq

Agreement providing for economic assistance to Iraq.
Effected by exchange of notes at Baghdad, May 18 and
22, 1957. Entered into force May 22. 1957.

Research reactor agreement concerning civil uses of
atomic energy. Signed at Washington June 7, 1957.
EJnters into fi>rce on date on wliicli each Government
receives from the other written notification that it has
complied with statutory and constitutional require-
ments.

Poland

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 454, 4.")5 ; 69 Stat. 44, 721),
with exchange of notes. Signed at Washington June
7, 1957. Entered into force June 7, 1957.

Portugal

Agreement amending research reactor agreement concern-

' Not in force.

ing civil uses of atomic energy of July 21, 19.55 (TIAS
3317). Signed at Washington June 7, 1957. Enters
into force on date on which each Government receives
from the other written notification tliat it has com-
plied with statutory and constitutional requirements.

United Kingdom

Agret'ment further extending the joint statement of De-
cemlier (!, 1945, relating to the settlement for lend-lease
and reciprocal aid, surplus war property, and claims
(TIAS 1509). Effected by exchange of notes at Wash-
ington April 24 and 25, 1957. Entered into force April
25, 1957.

Agreement for the disposition of equipment and mate-
rials furnished by the United States under the mutual
defense assistance agreement of January 27, 1950 (TIAS
2017) and no longer re<iuired by the United Kingdom.
Effected by exchange of notes at Ix)ndon May 10 and
15, 1957. Entered into force May 15, 1957.

DEPARTMENT AND FOREIGN SERVICE

Confirmations

The Senate on June 3 confirmed the following :

John M. Cabot to be Ambassador to Colombia. (For
biographic details, see press release 225 dated April 19.)

Earl E. T. Smith to be Ambassador to Cuba. (For bio-
graphic details, see press release 298 dated May 17.)

Llewellyn E. Thompson to be Ambassador to the Union
of Soviet Socialist Republics. (For biographic details,
see press release 252 dated April 29.)

Francis White to be Ambassador to Sweden. (For
biographic details, see press release 228 dated April 19.)

Designations

William A. Wieland as Director, Otflce of Middle Amer-
ican Affairs, effective May 19.

John S. Hoghland 2d as Deputy Assistant Secretary for
Congressional Relations, effective June 13. (For
biographic details, see press release 337 dated June 3.)

PUBLICATIONS

Recent Releases

For sale by the Superintendent of Documents, U. 8. Gov-
ernment Printinij Office, Washington 25, D. C. Address
requests direct to the Superintendent of Documents, ex-
cept in the case of free publications, which may be
obtained from the Department of State.

Atomic Energy — Cooperation for Civil Uses. TIAS 3758.
3 pp. 5^t.

Agreement between the United States of America and
Denmark, amending agreement of July 25, 195.5 — Signed

June 24, 1957

1033

at WashinKton June 27, 1956. Entered into force Febru-
ary 14, lO.'iT.

Surplus Agricultural Commodities. TIAS 3759. 2 pp.
54.

Agreement between the United States of America and
Turke.v, supplementiuK agreement of November 12, 1956 —
Signed at Ankara January 25, 1957. Entered into force
January 25, 1957.

Surplus Agricultural Commodities. TIAS 3760. 3 pp. 5<f.

Agreement between the United States of America and
Italy, amending agreement of October 30, 1956. Ex-
change of note.s — Signed at Rome January 7, 1957. En-
tered into force January 7, 1957.

Guaranty of Private Investments. TIAS 3761. 4 pp. 54-

Agreement between the United States of America and
Turkey. Exchange of notes — Signed at Ankara January
15, 1957. Entered into force January 15, 1957.

Surplus Agricultural Commodities. TIAS 3762. 3 pp. 5(f.

Agreement between the United States of America and
Italy, amending agreement of October 30, 1956, as
amended. Exchange of notes — Signed at Rome January
28 and February 1, 1957. Entered into force February
1, 19.57.

Air Force Mission to Venezuela. TIAS 3763. 2 pp. 54.

Agreement between the United States of America and
Venezuela, extending agreement of January 16, 1953. Ex-
change of notes — Signed at Washington February 11 and
15, 1957. Entered into force February 15, 1957 ; opera-
tive retroactively January 16, 1957.

Army Mission to Venezuela. TIAS 3764. 2 pp. 50.

Agreement between the United States of America and
Venezuela, extending agreement of August 10, 1951. Ex-
change of notes — Signed at Washington February 11 and
15, 1957. Entered into force February 15, 1957 ; opera-
tive retroactively August 10, 1955.

Atomic Energy — Cooperation for Civil Uses. TIAS 3765.

5 pp. 54.

Agreement between the United States of America and
the Federal Republic of Germany, amending agreement of
February 13, 1956— Signed at Washington June 29, 1956.
Entered into force February 18, 1957.

Surplus Agricultural Commodities. TIAS 3767. 2 pp. 50.

Agreement between the United States of America and
Iran, supplementing agreement of February 20, 1956 —
Signed at Tehran February 13, 1957. Entered into force
February 13, 1957.

Surplus Agricultural Commodities. TIAS 3768. 10 pp.

100.

Agreement between the United States of America and
Ecuador — Signed at Quito February 15, 1957, with re-
lated note. Entered into force February 15, 1957.

Certificates of Airworthiness for Imported Aircraft.
TIAS 3769. 7 pp. 10^.

Agreement between the United States of America and
Norway. Exchange of notes — Signed at Oslo February
5, 1957. Entered into force February 5, 1957.

Surplus Agricultural Commodities. TIAS 3770. 3 pp. 50.

Agrepiiient bt'two«'ii the United States of America and
Spain, amending agreement of October 23, 1956. Ex-

change of notes — Signed at Madrid February 1, 1957.
Entered into force February 1, 1957.

Atomic Energy — Cooperation for Civil Uses. TIAS 3771.

4 pp. 54.

Agreement between the United States of America and
Canada, amending agreement of June 15, 195.5 — Signed at
Washington June 26, 1956. Entered into force March 4,
1957.

Military Assistance Advisory Group. TIAS 3773. 4 pp.
50.

Agreement between the United States of America and
Nicaragua. Exchange of notes— Signed at Managua Jan-
uary 17 and February 9, 1957. Entered into force Feb-
ruary 9, 1957.

Air Transport Services. TIAS 3781. 4 pp. 54.

Agreed minute between the United States of America and
Switzerland — Signed at Washington February 6, 1957,
and exchange of notes — Signed at Washington March 1
and 4, 1957. Entered into force March 4, 1957.

Interchange of Patent Rights and Technical Information
for Defense Purposes. TIAS 3782. 14 pp. 104.

Agreement between the United States of America and
France — Signed at Paris March 12, 1957. Entered into
force March 12, 1957.

Surplus Agricultural Commodities — Sale of Tobacco and
Construction of Housing or Community Facilities. TIAS
3783. 2 pp. 54.

Agreement between the United States of America and the
United Kingdom of Great Britain and Northern Ireland.
Exchange of notes — Signed at London March 13, 1957.
Entered Into force March 13, 1957.

Relief Supplies — Duty-Free Entry and Free Inland Trans-
portation. TIAS 3784. 6 pp. 5<*.

Agreement between the United States of America and
Jordan, amending agreement of May 1 and June 29, 1954.
Exchange of notes — Dated at Amman July 6, September
28, and October 15, 1955. Entered into force September
28, 1955.

Surplus Agricultural Commodities. TIAS 3785. 2 pp.
54.

Agreement between the United States of America and
Yugoslavia, amending agreement of November 3, 1956.
Exchange of notes — Signed at Washington March 22,
1957. Entered into force March 22, 1957.

American Dead in World War II. TIAS 37S6. 4 pp. 5((.

Agreement between the United States of America and
the Netherlands, extending agreement of April 11, 19-17.
lOxchange of notes — Signed at The Hague January 14 and
August 29, 19.")5, and ilarch 9, llt.'t!. Entered into forvc
March 18, 1957.

United States Educational Foundation in Iceland. TIAS
37.S7. i;{ pp. lOt*.

Agreement between the United States of America and
Iceland— Signed at Reykjavik February 23, 1957. En-
tered into force February 23, 1957.

Surplus Agricultural Commodities. TIAS 3788. 3 pp.
54.

Agreement betwi>en the United States of .\raerica and
Italy, amending agreement of Octolier 30. 1956, a.«
amended. Exchange of note.'; — Signed at Hume Marcli
26, 1957. Entered into force March 2C>, 1957.

1034

Department of State Bulletin

me 24, 1957 I n d

merican Republics. Inter-American Committee
Completes Worli (Eisenhower, committee an-
nouncement) 1014

sia. America's Responsibilities In the Far East
(Robertson) 095

viation. The Paradox of Foreign Economic Pol-
icy (Kalijarvi) 1009

laims. Economic Xegotiations Between the I'uiteil
States and Poland (texts of notes) 1003

ommunism. America's Responsibilities in the Far
East (Robertson) 995

ongress, The

ongressioual Documents Relating to Foreign
Policy 1028

)isappearance of U.S. Pilot in Dominican Re-
public (Uubottom) 1025

'roposetl Legislation for Payment to Denmark in
Connection With Ships Requisitioned in 'World
■War II (Herter) 1020

)enmark. Proposed Legislation for Payment to
Denmark in Connection With Ships Requisi-
tioned in World War II (Herter) 1020

)epartment and Foreign Service

Confirmations (Cabot, Smith, Thompson, Wliite) . 1033

^he Department of State and the U.S. Merchant
Marine (Hill) 1017

)esignations (Hoghland, Wieland) 1033

)ominican Republic

)isapiiearance of U.S. Pilot in Dominican Republic
(Rubottom, text of note) 1025

>etters of Credence (De Moya) 1013

Economic Affairs

rhe Department of State and the U.S. Merchant
Marine (Hill) 1017

Economic Negotiations Between the United States
and Poland (Kalijarvi, texts of agreements and
notes) 1003

ndia Begins Repayment of Lend-Lease Silver
Debt (Turnage) 1002

rhe Paradox of Foreign Economic Policy (Kali-
jarvi) 1009

renth Anniversary of Marshall Plan (Eisen-
hower) 1002

Europe. Tenth Anniversary of Marshall Plan
(Eisenhower) 1002

ndia. India Begins Repayment of Lend-Lease
Silver Debt (Turnage) 1002

nternational Organizations and Conferences.
[nternatioual Labor Conference (delegation) . . . 1031
Israel. Syrian Complaint Against Israel Considered

by Security Council (Lodge) 1029

Fapan

Letters of Credence (Asakai) 1013

Secretaries of State and Defense Review Girard

Case (text of joint statement) 1000

Vlilitary Affairs. Secretaries of State and Defense

Review Girard Case (test of joint statement) . 1000

Mutual Security. Tenth Anniversary of Marshall
Plan (Eisenhower) 1002

Poland. Economic Negotiations Between the United
States and Poland (Kalijarvi, Kotlicki, texts of

agreements and notes) 1003

Presidential Documents

Enter-American Committee Completes Work . . . 1014

renth Anniversary of Marshall Plan 1002

Publications. Recent Releases 1033

Syria. Syrian Complaint Against Israel Considered
by Security Council (Lodge) 1029

e X

Vol. XXXVI, No. 939

Treaty Information

Current Actions 1032

Economic Negotiations Between the United States
and Poland (Kalijarvi, Kotlicki, texts of agree-
ments and notes) 1003

United Nations

International Labor Conference (delegation) . . . 1031

Syrian Complaint Against Israel Considered by

Security Council (Lodge) 1029

Name Index

Asakai, Koichiro 1013

Cabot, John M 1033

de Moya Alonzo, Manuel 1013

Dulles, Secretary 1000

Eisenhower, President 1002, 1014

Girard, William S 1000

Herter, Christian A 1020

Hill, Robert C 1017

Hoghland, .Tohn S. 2d 1033

Kalijarvi, Thorsten V lOOS, 1(X)9

Kotlicki, Henry 1009

Lodge, Henry Cabot 1029

Murphy, Gerald Lester 1025

Robertson, Walter S 995

Rubottom, Roy R. Jr 1025

Smith, Earl E. T 1033

Thompson, Llewellyn E 1033

Turnage, William V 1002

White, Francis 1033

Wieland, William A 1033

Wilson, Charles E lOOO

Check List of Department of State
Press Releases: June 3-9

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

Press releases issued prior to June 3 which appear
in this issue of the Bulletin are Nos. 304 and 306
of May 21, 309 of May 22, 324 of May 29, and 331 of
May 31.
No. Date Subject

335 6/3 Dominican Republic credentials (re-

write).

336 6/3 Robertson : Duke University.

*337 6/3 Hoghland designated Deputy Assistant

Secretary (biographic details).
*338 6/3 Educational exchange.

339 6/4 Japan credentials (rewrite).

340 6/4 Turnage : statement on payment by In-

dia on lend-lease debt.
*341 6/5 Interim appointment to International

Pacific Salmon Fisheries Commission.
*342 6/6 Educational exchange.
343 6/7 U.S.-Polish economic negotiations.
*344 6/6 Educational exchange.
t34o 6/7 Amendments to U.S.-Portuguese atomic

agreement.
t346 6/7 Atoms-for-peace agreement with Iraq

(rewrite).
t347 6/7 Hare : Grinnell College.
348 6/7 Kalijarvi : statement on Polish aid

agreement.
t349 6/7 Murphy: Catholic University.
*350 6/7 Educational exchange.

*Not printed.

t Held for a later issue of the Bulletin.

United States
Government Printing Office

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OFFICIAL BUSINESS

A new release in the popular BACKGROUND series

the

Department

of

State

A LOOK AT THE MIDDLE EAST

The United States has vital security interests in the Middle East.
Soviet activity in the region, the need of our European allies for
Middle Eastern oil, and the great strategic geographic importance of
the area make it essential that the United States act with a high degree
of responsibility and friendly imjMirtiality in tV lashes of national
interests which are keeping the Middle East in a state of turmoil.

A Look at the Middle East, a new Background pamphlet, ex-
amines the origin and causes of some of the situations we face in the
area. The jiamphlet is based on a speech delivered by Deputy Under
Secretary of State Robert Murphy at Georgetown University, Wash-
ington, D.C.jOn March 14, 1957.

Topics discussed in the publication include the emergence of
nationalism in the Middle East, the partition of Palestine, the new
regime in Egj'pt, the Arabian Peninsula, the "northern tier," inde-
pendent Libya, and major elements of U.S. policy. The 16-page
pamphlet is illustrated with maps and photographs.

Copies of A Look at the Middle East may be purchased from the
Superintendent of Documents, U.S. Government Printing Office,
Washington 25, D.C., for 15 cents each.

Publication 6478

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(cash, check, or
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Please send me copies of A Look at the Middle East.

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