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Vol. XL» No. 1032 X ^' y AP''il 6' ^^^^ 


American People by President Eisenhower 467 

Statement 478 

U.S. CHINA POLICY • By Assistant Secretary Robertson . . 472 


Statements by Acting Secretary Herter, Under Secretary 
Dillon, Secretary of Defense Neil H. McElroy, and Gen. 
Nathan F. Ticining 4S5 

For index see inside back cover 

Vol. XL, No. 1032 • Publication 6794 
April 6, 1959 

For sale by the Superintendent of Documents 

U.S. Government Printing Ofllce 

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approved by the Director of the Bureau of 
the Budget (January 20, 1958). 

Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Oltatlon of the Department 
OT State Bulletin as the source will be 

The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, 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 interruitional interest. 

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

Security in tlie Free World 


My Fellow Americans : Tonight I want to talk 
with you about two subjects : 

One is about a city that lies four thousand miles 
away. It is West Berlin. In a turbulent world 
it has been for a decade a symbol of freedom. But 
recently its name has come to symbolize also the 
efforts of imperialistic communism to divide the 
free world, to tlirow us off balance, and to weaken 
our will for making certain of our collective 

Next I shall talk to you about the state of our 
Nation's posture of defense and the free world's 
capacity to meet the challenges that the Soviets 
incessantly pose to peace and to our own security. 

First, West Berlin. 

You have heard much about this city recently 
and possibly wondered why American troops are 
in it at all. 

How did we get there in the first place ? Wliat 
responsibilities do we have in connection with it, 
and how did we acquire them ? Why has there de- 
veloped a situation surrounding this city that poses 
another of the recurring threats to peace that bear 
the stamp of Soviet manufacture ? 

Occupation Areas Defined 

Let's begin with a brief review of recent history. 

We first acquired rights and responsibilities in 
West Berlin as a result of World War II. Even 
before the war ended, when the defeat and capit- 
ulation of Nazi Germany were in sight, the Allied 
Powers, including the Soviet Union, signed agree- 
ments defining the areas of occupation in Germany 
and Berlin which they would assume. As a result, 
Germany and the city of Berlin were each divided 

" Delivered to the Nation by television and radio on Mar. 
16 (Wliite House press release). 

into four zones, occupied by American, British, 
French, and Soviet troops, respectively. 

Under the wartime agreements I have men- 
tioned, the Western Allies entered into occupation 
of West Berlin and withdrew our armies from the 
Soviet Zone. Accordingly, the boundary of the 
Soviet Zone, like our presence in Berlin, was estab- 
lished upon the basis of these same agreements. 
Also by agreement among the occupying powers, 
the Western Allies — the United States, the United 
Kingdom, and France — were guaranteed free ac- 
cess to Berlin. 

Here in my office is a map of Germany. The 
light portion of the map is West Germany; the 
darker portion is East Germany. The lighter gray 
lanes are the air corridors to Berlin, and the dotted 
lines show both the main roads and railroads that 
give us access to the city. Notice that the city of 
Berlin is 110 miles inside East Germany; that is, 
it is 110 miles from the nearest boimdary of West 
Germany. Here is the territory, now in East Ger- 
many, that was taken by our Army in World War 
II and was turned over to the Russians by political 
agreement made before the end of the war. 

Now at the end of World War II our amiounced 
purpose and that of our wartime associates was the 
pacification and eventual imification of Germany 
under freedom. We jointly agreed to undertake 
this task. Ever since that time the United States 
has continuously recognized the obligation of the 
Allied Governments under international law to 
reach a just peace settlement with Germany and 
not to prolong the occupation of Germany 

Basic Purpose of Soviet Government 

The public record demonstrates clearly that 
such a settlement has been frustrated only by the 
Soviets. It quickly became evident that Soviet 

April 6, 1959 


leaders were not interested in a free, unified Ger- 
many and were determined to induce or force the 
Western powers to leave Berlin. 

Ten years ago Senator John Foster Dulles, now 
our great Secretary of State, described the basic 
purpose of the Soviet Government. He said that 
purpose was : 

... no less than world domination, to be achieved by 
gaining political power successively in each of the many 
areas which had been afflicted by war, so that In the end 
the United States, which was openly called the main 
enemy, would be isolated and closely encircled. 

The current Berlin effort of the Soviets falls 
within this pattern of basic purpose. 

The first instance of unusual pressure, clearly 
evidencing these purposes, came in 1948 when the 
Commiuiists imposed a blockade to force the pro- 
tecting Western troops out of Berlin and to starve 
the people of that city into submission. 

That plan failed. A free people and a dramatic 
airlift broke the back of the scheme. 

In the end the Communists abandoned the 
blockade and concluded an agreement in 1949 with 
the Western powers, reconfirming our right of 
mirestricted access to the city. 

Tlien, last November, the Soviets annoimced 
that they intended to repudiate these solemn obli- 
gations.^ They once more appear to be living by 
the Communist formula that "promises are like 
piecrusts, made to be broken." 

The Soviet Government has also announced its 
intention to enter into a peace treaty with the East 
German puppet regime. The making of this 
treaty, the Soviets assert, will deny our occupa- 
tion rights and our rights of access. It is, of 
course, clear that no so-called "peace treaty" be- 
tween the Soviets and the East German regime 
can have any moral or legal effect upon our rights. 
The Soviet threat has since been repeated sev- 
eral times, accompanied by various and changing 
suggestions for dealing with the status of the 
city. Their proposals have included a vague offer 
to make the Western part of Berlin — though not 
the Eastern part, which the Soviets control — a 
so-called "free city." 

It is by no means clear what West Berlin would 
be free from, except perhaps from freedom itself. 
It would not be free from the ever-present danger 

' For text of Soviet note of Nov. 27 and U.S. reply, see 
Bulletin of Jan. 19, 1959, p. 79. 

of Commimist domination. No one, certainly not 
the two million West Berliners, can ignore the 
cold fact that Berlin is surrounded by many divi- 
sions of Soviet and Eastern German troops and 
by territory governed by authorities dedicated to 
eliminating freedom from the area. 

Now a matter of principle — the United States 
cannot accept the asserted right of any govern- 
ment to break, by itself, solemn agreements to 
which we, with others, are parties. But in the i 
Berlin situation both free people and principle 
are at stake. 

Fundamental Choices in Berlin Situation 

Wliat, then, are the fxmdamental choices we 
have in this situation ? 

First, of course, there is the choice which the 
Soviet rulers themselves would like us to make. 
They hope that we can be frightened into abdicat- 
ing our rights — which are indeed responsibil- 
ities — to help establish a just and peaceful solution 
to the German problem, rights which American 
and Allied soldiers purchased with their lives. 

We have no intention of forgetting our rights 
or of deserting a free people. Soviet rulers should 
remember that free men have, before this, died 
for so-called "scraps of paper" which represented 
duty and honor and freedom. 

The shirking of our responsibilities would solve 
no problems for us. First, it would mean the end 
of all hopes for a Germany under government of 
German choosing. It would raise among our 
friends the most serious doubts about the validity 
of all the international agreements and commit- 
ments we have made with them in every quarter 
of the globe. One result would be to imdermine 
the mutual confidence upon which our entire sys- 
tem of collective security is founded. 

This the Soviets would greet as a great victory 
over the West. 

Obviously, this choice is unacceptable to us. 

The second choice which the Soviets have com- 
pelled us to face is the possibility of war. 

Certainly the American and Western peoples do 
not want war. The whole world knows this. 
Global conflict imder modem conditions could 
mean the destruction of civilization. The Soviet 
rulers themselves are well aware of this fact. 

But all history has taught us the grim lesson 
that no nation has ever been successful in avoiding 


Department of Stale Bulletin 

the terrors of war by refusing to defend its rights, 
by attempting to placate aggression. 

Whatever risk of armed conflict may be inherent 
in the present Berlin situation, it was deliberately 
created by the Soviet rulers. Moreover, the justice 
of our position is attested by the fact that it is 
ardently supported with virtual unanimity by 
the people of West Berlin. 

The risk of war is minimized if we stand firm. 
War would become more likely if we gave way 
and encouraged a rule of terrorism rather than 
a rule of law and order. Indeed, this is the core 
of the peace policy which we are striving to carry 
out around the world. In that policy is found the 
world's best hope for peace. 

Now, our final choice is negotiation, even while 
we continue to provide for our security against 
every threat. We are seeking meaningful nego- 
tiation at this moment. The United States and 
its allies stand ready to talk with Soviet represent- 
atives at any time and under any circumstances 
which offer prospects of worthwhile results. 

We have no selfish material aims in view. We 
seek no domination over others — only a just peace 
for the world and particularly, in this instance, 
for the people most involved. 

We are ready to consider all proposals which 
may help to reassure and will take into account 
the European peoples most concerned. 

We are willing to listen to new ideas and are 
prepared to present others. We will do every- 
thing within our power to bring about serious 
negotiations and to make these negotiations 

"We Will Not Retreat From Our Duty" 

Let us remind ourselves once again of what we 
cannot do. 

We cannot try to purchase peace by forsaking 
two million free people of Berlin. 

We cannot agree to any permanent and com- 
pulsory division of the German nation, which 
would leave Central Europe a perpetual powder 
mill, even though we are ready to discuss with 
all affected nations any reasonable methods for its 
eventual unification. 

We cannot recognize the asserted right of any 
nation to dishonor its international agreements 
whenever it chooses. If we should accept such a 
contention the whole process of negotiation would 
become a barren mockery. 

We must not, by weakness or irresolution, in- 
crease the risk of war. 

Finally, we cannot, merely for the sake of dem- 
onstrating so-called "flexibility," accept any agree- 
ment or arrangement which would undermine the 
security of the United States and its allies. 

The Soviet note of March 2d appears to be a 
move toward negotiation on an improved basis. 
We would never negotiate under a dictated time 
limit or agenda or on other unreasonable terms. 
We are, with our allies, however, in view of the 
changed tone of the Soviet note, concerting a reply 
to that note. 

It is my hope that thereby all of us can reach 
agreement with the Soviets on an early meeting 
at the level of foreign ministers. 

Assuming developments that justify a summer 
meeting at the summit, the United States would 
be ready to participate in that further effort. 

Our position, then, is this : We will not retreat 
one inch from our duty. We shall continue to 
exercise our right of peaceful passage to and from 
West Berlin. We will not be the first to breach 
the peace; it is the Soviets who threaten the use 
of force to interfere with such free passage. We 
are ready to participate fully in every sincere 
effort at negotiation that will respect the existing 
rights of all and their opportunity to live in peace. 

Cooperative Efforts To Protect Freedom 

Today's Berlin difficulty is not the first stum- 
bling block that international commimism has 
placed along the road to peace. The world has 
enjoyed little relief from tension in the past dozen 
years. As long as the Communist empire con- 
tinues to seek world domination we shall have to 
face threats to the peace of varying character and 
location. We have lived and will continue to live 
in a period where emergencies manufactured by 
the Soviets follow one another like beads on a 

Whatever the length of that period, we shall 
have to remain continuously ready to repel ag- 
gression, whether it be political, economic, or mili- 
tary. Every day our policies of peace will be sub- 
jected to test. We must have steadiness and reso- 
lution and firm adherence to our own carefully 
thought-out policies. 

We must avoid letting fear or lack of confidence 
turn us from the course that self-respect, decency, 
and love of liberty point out. To do so would be 

April 6, 1959 


to dissipate the creative energies of our people, 
upon whom our real security rests. This we will 
never do. 

Now, to build toward peace and maintain free- 
world security will require action in every field 
of human enterprise. It can only be done by the 
nations of the free world working together in close 
cooperation, adjusting their differences, sharing 
their common burdens, pursuing their common 
goals. We are carrying out just such an effort. 
We call it mutual security. 

We recognize that freedom is indivisible. 
Wlierever in the world freedom is destroyed, by 
that much is every free nation hurt. 

If the United States alone had to carry the full 
burden of defending its interests from the Com- 
munist threat, we would have to draft a much 
larger portion of our manhood into the armed 
services, spend many more billions of treasure, and 
put a more intense strain on all our resources and 
capacities. We would become more and more like 
a garrison state. 

Fortunately we do not have to adopt such a 
desperate course. Nearly 50 nations have joined 
with us in a cooperative effort to protect freedom. 
This system of mutual security allows each nation 
to provide the forces which it is best able to 

Now what is the strength of these forces? 
What are we contributing to the joint effort? 
Wliat can we comit on from our allies? 

Let's look first at our own contribution. Let 
us look at it from the viewpoint of our own 

Of late I — and I am sure the American peo- 
ple — have heard or read conflicting claims about 
our defenses. 

We have heard that our military posture has 
been subordinated to a balanced budget, jeop- 
ardizing our national defense. 

We have heard that our defenses are presently — 
or they will be sometime in the future — inadequate 
to meet recurrent Communist threats. 

We have heard that more manpower in our 
forces than I have recommended is essential in the 
present circumstances, for psychological reasons 
if for no other. 

My friends, such assertions as these are simply 
not true. They are without foundation. It is not 
likely, however — and this is indeed fortunate 

that such assertions will lead the Soviet Union to 
miscalculate our true strength. 

Design of Our Defense 

The design of our defense is the product of the 
best composite judgment available for the fiilfill- 
ment of our security needs. 

First, we are devoting great sums for the main- 
tenance of forces capable of nuclear retaliatory 
strikes. This capability is our indispensable 
deterrent to aggression against us. 

The central core of our deterrent striking force 
is our Strategic Air Command with its long-range 
bombers. They are reinforced by naval aircraft, 
missiles of varying types, and tactical fighter 
bombers. This array will soon include weapons 
of even greater power and effectiveness. 

The capacity of our combined striking forces 
represents an almost unimaginable destructive 
power. It is protected by a vast early warning 
system and by powerful air defense forces. 

More and more this great retaliatory force will 
feature intermediate as well as long-range missiles 
capable of reaching any target on the earth. As 
we steadily go through the transition period from 
bomber to missile as the backbone of this striking 
force, we nevertheless continue replacing bombers, 
powerful as we know them now to be, with others 
of greater power, greater range, and greater speed. 
In this way we take care of the needs of this year 
and those immediately ahead, even as we plan, 
develop, and build for the future. 

We are engaged in an endless process of re- 
search, development, and production to equip our 
forces with new weapons. 

This process is tremendously costly, even should 
we consider it only in terms of money. If we are 
to master the problem of security over a prolonged 
period, we cannot forever borrow from the future 
to meet the needs of the present. 

Therefore we must concentrate our resources on 
those things we need most, minimizing those pro- 
grams that make less decisive contributions to our 
Nation. Effective defense comes first. 

Missile Development 

Today there is no defense field to which we are 
devoting more talent, skill, and money than that 
of missile development. 


Deparfment of State Bulletin 

I'd like to have you look at this chart showing 
three lists of missiles. 


Now in use 

Available in 1969 

Active reaearcfi and 

Air to Air 

Sparrow I 
Sparrow III 
Falcon QAE I 
Falcon GAR II 

Falcon GAR III 
Falcon GAR IV 

Falcon GAR IX 
Falcon GAR XI 

Air to Surface 



Hound Dog 

Surface to Air 

Nike AJai 
Nike Hercules 


Nike Zeus 

Surface to 

Honest John 



Little John 




Regulus I 







The first list shows 17 different types of missiles 
now in use by our Armed Forces. The second list 
shows missiles that will be available for use in 
1959. There are 11 different types. The third list 
shows 13 more types of missiles now in the re- 
search and development stages. In all there are 
41 types of missiles. 

Now there is, of course, a constant parade of 
improvement, with newer and better weapons 
constantly crowding out the older and less efficient 
ones. The first model of any new piece of equip- 
ment is always relatively primitive. The first 
sewing machine, the first typewriter, the first auto- 
mobile — all left much to be desired. And even the 
rockets that dazzle us today will soon become the 
Model T's — the "Tin Lizzies" — of the missile age. 

We must never become frozen in obsolescence. 

In addition to the forces comprising our retal- 
iatory striking power, we have potent and flex- 
ible naval, ground, and amphibious elements. We 
have a growing array of nuclear-powered ships, 
both submarines and surface vessels. 

Worldwide deployment of Army divisions, in- 
cluding missile units, increases the ability of the 
U.S. Army and the Marines to rapidly apply nec- 
essary force to any area of trouble. At home, the 
Strategic Army Corps is ready and able to move 
promptly as needed to any area of the world. 

I believe that the American people want, are 
entitled to, can indefinitely pay for, and now have 
and will continue to have a modern, effective, and 
adequate Military Establishment. In this overall 
conviction I am supported by the mass of the best 
military opinion I can mobilize and by scientific 
and every other kind of talent that is giving its 
attention to a problem to which I personally have 
devoted a lifetime. 

Strength of Our Free-World Allies 

As all thoughtful citizens know, our own secu- 
rity requires the supplemental and reinforcing 
strength provided by the free world's total. 

In the Far East, nations with which we are asso- 
ciated in a connnon defense system have over a 
million trained soldiers standing watch over the 
free- world frontiers. 

In Europe, the efforts of 15 nations are imited 
in support of freedom. 

In global totals our friends are contributing 
over 200 ground divisions, 30,000 aircraft, and 
2,500 combatant naval vessels to the task of de- 
fending the free world. For every soldier we 
have under arms, our free-world allies have five. 

Through each of these stout efforts we 
strengthen the bonds of freedom. 

Our mutual security program supports this joint 
undertaking by helping to equip our partners with 
the weapons they cannot by themselves provide 
and by helping them keep their economies strong. 

This mutual effort provides a constructive, long- 
term answer to the recurrent crises engineered by 
the Communists. It strengthens the stability of 
free nations and lessens opportunities for Com- 
munist subversion and penetration. It supports 
economic growth and gives hope and confidence to 
the cause of freedom. It is America's strongest 
instrument for positive action in the world today. 

Last Friday [March 13] I sent to the Congress 
a special message presenting my recommendations 
for this important part of our defense and secu- 
rity program for the coming year.^ Let me repeat 
that definition of that program : It is an important 
part of our defense and security program for the 
coming year. In my judgment there is no better 
means of showing our resolution, our firmness, 
and our understanding of the Communist chal- 
lenge than to support this program in full 

' For text, see iUd., Mar. 30, 1959, p. 427. 

April 6, 7959 


These funds are vital to our national and free- 
world security. Any misguided effort to reduce 
them below what I have recommended weakens 
the sentries of freedom wherever they stand. 

In this conviction, also, I am supported by the 
military experts of our Government. 

Standing Equal to the Challenge 

Fellow Americans, of one thing I am sure : that 
we have the courage and capacity to meet the 
stern realities of the present and the future. We 
need only to understand the issues and to practice 
the self-discipline that freedom demands. 

Our security shield is the productivity of our 
free economy, the power of our military forces, 

and the enduring might of a great community of 
nations determined to defend their freedom. 

We Americans have been, from the beginning, 
a free people, people who by their spiritual and 
moral strength and their love of country provide 
the mainspring for all we have done, are doing, 
and will do. In those truths we place our faith. 

So, together with our allies, we stand firm wher- 
ever the probing finger of any aggressor may 
point. Thus we lessen the risk of aggression ; thus j 
we shall with resolution and courage struggle 
ever forward to the dream of a just and permanent 

God helping us, we shall stand always equal to 
the challenge. 

Thank you and good night. 

U.S. China Policy 

Jy Salter S. Robertson 

Assistant Secretary for Far Eastern Affairs ^ 

It has become a commonplace in making speeches 
to each other to say that Canadians and Americans 
share a conunon heritage. It is a commonplace 
because it expresses an obvious trath. We do in- 
deed share a common heritage which, in the final 
analysis, we would both agi-ee far transcends in 
importance any of the problems which arise from 
time to time to vex our neighborly relations. We 
are indeed the inheritors of personal liberties, 
without which all of our material blessings would 
comit for naught — liberties which we take for 
granted as we do the stars but which are now de- 
nied, and always have been denied, to the over- 
whelming majority of the peoples of the world. 

In the seeming security of our daily routine 
lives it is difficult to realize that our world is in a 
state of crisis, that we are indeed engaged in a 
global struggle for the survival of a free civiliza- 
tion. The Far East is a strategic and critical area 
in this struggle. It is a vast area : 13 countries, 900 
millions of people, approximately one-third of the 
world's population. It includes: Japan, Korea, 

' Address made before the Canadian Club, Ottawa, Can- 
ada, on Mar. 13. 

China, the Philippines, Viet-Nam, Laos, Cam- 
bodia, Burma, Thailand, Indonesia, Malaya, Aus- 
tralia, and New Zealand ; 11 Asian countries and 2 
Anglo-Saxon countries in an Asian setting. 

The 11 Asian countries comprise a region of 
great diversity, divided by sharp differences in tra- 
dition, religion, culture, and circmnstances. The 
economies range from the great industrial, mercan- 
tile complex of Japan to the primitive economies of 
Southeast Asia. Eight out of the 11 of these coun- 
tries have achieved their independence since 1945. 

Taken as a whole, the area is one of great poten- 
tial wealth in both human and natural resources 
but, with few exceptions, suffering from mass 
poverty and ignorance, economic and political in- 
stability, shortage of investment capital, shortage 
of technicians of all kinds, shortage of educational 
facilities, deep resentments of Western colonialism, 
deep suspicions of the white man, and fears of a 
new exploitation. It is an area seething with a 
new spirit of nationalism, social unrest, and rising 
aspirations for a place in the smi and a better life 
for its poverty-stricken millions. And interre- 
lated with and overriding all of its problems are 


Department of State Bulletin 

the aggressions, infiltrations, and subversions of 
the international Communists. 

Now it is the policy of the United States to meet 
this pervasive threat by helping to build up the 
military, political, and economic strength of our 
Far Eastern allies and friends as rapidly as pos- 
sible. This is the sole purpose of our mutual secu- 
rity programs in these countries. 

Yet the governments of all of these free coun- 
tries without exception have a gnawing fear of the 
growing power and threat of Red China. And be- 
cause Red China is a major threat to their new- 
foiuid independence and therefore a major threat 
to the security of the free world, it is essential that 
China policy be coldly realistic and one that best 
serves free- world security interests and objectives. 

Bipartisan Support 

I need not remind you that U.S. China policy has 
been a subject of bitter controversy. It has dis- 
rupted friendships, has lent itself to name calling, 
to the questioning of motives, and in some tragic 
instances to the questioning of loyalty itself. But, 
strange as it may seem, U.S. China policy has prob- 
ably enjoyed a larger measure of bipartisan sup- 
port in the United States than any other major 
policy of our Government. 

Since 1950 the difference in basic China policy 
between former President Truman and President 
Eisenhower is the difference between Tweedledum 
and Tweedledee. 

In early 1950, following the Commmiist take- 
over of the mainland in December 1949 and about 
the time of British recognition, President Truman 
vetoed the recommendation made to him that we 
recognize Red China. The Republican attack on 
the Democrats in the 1952 election campaign was 
not on basic China policy as it then was but rather 
on what was alleged to have been the vacillations 
and blunders which had helped to create the 
Frankenstein monster of Red China and enhance 
its menace to the free world. In 1956, an election 
year, a Democratic-sponsored resolution, reaffirm- 
ing support of the Republic of China and opposing 
the seating of Red China in the United Nations, 
passed the House by a vote of 391 to and of 86 to 
in the Senate. Not a single Congressman or 
Senator of either party was willing to vote against 
this resolution. This is a phenomenon unprece- 
dented in American political history. When the 

parties later assembled for their national conven- 
tions they adopted almost identical planks in sup- 
port of this policy. In the recent Taiwan crisis 
Mr. Truman was among the first to come out in 
strong support of President Eisenhower's position. 
To repeat, the differences of opinion about China 
policy do not represent differences between polit- 
ical parties but rather differences between indi- 
viduals, irrespective of party lines. 

Herbert Feis called his book on the subject Tlie 
China Tangle. It is a good name. The controversy 
is indeed a tangle, a tangle of truths, untruths, and 
half-truths. It is entangled by Commimist propa- 
ganda and distortions. The Communists will al- 
ways see to it that this is so. It is entangled by the 
unwitting acceptance by many highly respected 
and intelligent Americans of the subtle propa- 
ganda and misinformation to which they are sub- 
jected. It is entangled by our early failures to 
recognize the origin, nature, direction, and control 
of the Commmiist revolution in China. It is en- 
tangled by the corruption and ineptness which 
existed in certain elements of the Kuomingtang 
but which was exploited so as to make it appear 
that all Chinese Government leaders were corrupt 
and inept. And, finally, it is entangled by honest 
differences of opinion among the objective and 
well-informed — differences of opinion which, 
thank God, have always existed and always will 
exist concerning public questions in the kind of 
free society we are struggling to preserve in the 
world today. 

U.S. Policy Simple To State 

But despite the tangle and however complex it 
might be in implementation, our policy is simple to 
state. On the one hand, our policy is to face up to 
the realities of Chinese Commimist objectives, op- 
posing the further spread of Chinese Communist 
influence and power. On the other hand, as a prin- 
cipal means to this end, our policy is to keep alive, 
support, and strengthen a non-Communist Chinese 
Government, firndy oriented to the free world, as 
a foil and a challenge to the fanatical, aggressive, 
hostile, and threatening International Communist 
regime of Peiping, an implacable enemy dedicated 
to the destruction of all the foundations upon 
which a free society rests. 

It is often charged that our policy is tied to the 
political fortunes of one man : Chiang Kai-shek. 

April 6, 1959 


This is a reductio ad absurdum. Chiang is in 
fact a time-tested friend and ally. He has never 
broken his word to us or an agreement with us. 
Following Pearl Harbor in 1941 all of the West- 
ern powers were soon swe^jt from the Western 
Pacific. We were swept about as far as we could 
be swept this side of the South Pole — Melbourne, 
Australia. When the Japanese had Chiang bot- 
tled up in Chungking, having occupied all of his 
ports of entry and large sections of his country, 
and Chiang with no ally within thousands of miles, 
they made him a princely offer to sell out to them. 
He refused, fighting on against overwhelming 
odds. This refusal saved thousands of Allied 
lives. Had he sold out, there would have been 
released from li/^ to 2 million additional Japanese 
troops to oppose our advance from the south. 

He refused to sell out to the Russians. After the 
Russians had occupied Manchuria— that great 
prize which they received for 5 days of nominal 
participation in the Pacific war and, incidentally, 
the most strategic base in all of Asia for carrying 
out their objectives of communizing Asia — they 
invited Chiang to come into their economic orbit, 
saying that they would settle his Communist prob- 
lem for him. He rejected this offer, and they 
retaliated by refusing to allow the United States 
to transport troops of the Nationalist Government 
into Manchuria to take over territory in accord- 
ance with solemn agreements to which the Soviets 
were party. Instead, the Soviets turned over vast 
areas and Japanese arms and equipment to the 
Chinese Communists. This despite the fact that 
on August 14, 1945, the day the Japanese surren- 
dered, the Soviets had signed a treaty with the 
Republic of China acknowledging its sovereignty 
over Manchuria and pledging all moral, material, 
and military support to that Government. 

And finally, Chiang has repeatedly refused to 
sell out to Peiping, which constantly plies him with 
lavish offers. 

Be all this as it may, if Chiang should die to- 
night, the validity of our policy would in no way 
be affected. Today, as in the past, there are only 
two choices available to us: the anti-Communist 
Republic of China, our friend, or the International 
Communist regime of Peiping, a deadly enemy 
dedicated to our destruction. 

In Chunglving back in 1945, some of my friends 
and associates thought that the Democratic League 
offered a third force wluch we should cultivate 

and support. It was later recognized as a Com- 
munist-front organization designed to ensnare the j 
middle-of-the-road intellectuals. 1 

Basis for Nonrecognition of Red China 

Our opposition to the Red regime is not, as you 
are often told, based upon the disapproval of an 
ideology or an economic systejn, much as we abhor 
both. We recognize many totalitarian regimes 
with varying economic systems, and we have not 
refused to sit down with them in the world forum 
of the United Nations. Nor is our policy, as some- 
times charged, based upon an emotional reaction 
to the Korean war. Our policy is a coldly realistic 
one, based upon three major considerations, all 
directly related to the overall collective security 
of the free world. 

The first of these considerations is the security 
interest of the United States. It is often forgot- 
ten or ignored that the recognition of Red China 
would, as a practical matter, mean the liquidation 
of the Republic of Cliina with all that would mean 
to our strategic, psychological, and moral position 
in our opposition to Communist expansion in the 
Far East. Taiwan is a vital link in our island 
chain of defenses in the Pacific, all now covered 
by bilateral defense treaties. The Chinese mili- 
tary forces on Taiwan of some 600,000 are an 
important factor in the military balance of power 
in the Pacific and a continuing deterrent to the 
renewal of Communist aggression in Korea or 
elsewhere in Asia. If Taiwan should be given 
over to the Communists, Japan, the Philippines, 
and all of Southeast Asia would be seriously 

The second basic consideration is our interest 
in helping other Asian nations maintain their na- 
tional independence. Our bilateral and multi- 1 
lateral defense treaties, as well as our mutual ' 
security programs, are designed to this end. If 
the United States were to abandon its commit- 
ments to the Republic of China in order to ap- 
pease the threatening Red Chinese, no country in 
Asia could feel that it could longer rely upon the 
protection of the United States against the Com- 
mimist threat. These comparatively weak nations 
would have no alternative but to come to terms — 
the best they could get — with the Peiping colos- 
sus. Not only could we then expect a rapid expan- 
sion of communism throughout Asia, but the moral 


Department of State Bulletin 

position of the United States upon which we must 
rely for much of our strength throughout the 
world would suffer in-eparable damage. 

The third major consideration is the long-range 
interests and future orientation of the Chinese 
people themselves. The anti-Communist Govern- 
ment of the Republic of Cliina is a symbol of 
Chinese opposition to communism — the only rally- 
ing point in the world for non-Communist 
Chinese, the only Chinese alternate focus of 
loyalty for millions of Chinese on the mainland, 
on Taiwan, and throughout Southeast Asia. If 
the Republic of China should be liquidated, it 
would extinguish a beacon of hope for millions 
of mainland Chinese. Taiwan's 10 million would 
be delivered to the slavery of the mainland, and 
the 12 million overseas Chinese would automati- 
cally become increasingly dangerous cells of in- 
filtration and subversion in the countries where 
they reside. 

Let no one say that representation is being 
denied to 600 million mainland Chinese. The 
fanatical Marxists of Peiping come no closer to 
representing the will and aspirations of the 
Chinese people than the puppet regime of Buda- 
pest comes to representing the will and aspira- 
tions of the Hungarian people or William Z. 
Foster comes to representing the will and aspira- 
tions of the American people. They have given 
indisputable evidence that they are jDart and par- 
cel of the apparatus of the international Com- 
munist conspiracy to communize the world. 

Peiping's Unity With Moscow 

Back in the 1940's, when the Chinese Commu- 
nists were being reported by some observers as not 
being real Commimists but rather the leaders of 
a democratic revolution for agrarian reform, Mao 
Tse-tung was writing of himself, "I am a Marxist 
dedicated to communizing China and the world 
under the leadership of Moscow." All of his sub- 
sequent actions have borne out his dedication to 
that goal. Peiping has demonstrated its unity 
with Moscow by faithfully following the laby- 
rinthine twistings and turnings of Moscow's ideo- 
logical line on bloc and world affairs. Wlien 
there were rumblings of revolt in Eastern Eu- 
rope, Mao sent Chou En-lai to rally the wavering 
satellites into miity "under the leadership of Mos- 
cow." In November 1957, when Mao visited 

Moscow, he spoke to the students, including many 
Chinese, of Moscow University : "In the associa- 
tion of Socialist states," he said, "there must be a 
leader and that leader is Moscow." 

Despite the price it had to pay in Asian opinion, 
Peiping proclaimed vigorous approval of Mos- 
cow's bloody suppression of the Hungarian revolt. 
It publicly applauded the execution of Nagy. 
Mao's bitter denunciation of Tito was not because 
Tito was not a Commimist but rather because he 
dared to challenge the leadership of Moscow. 
Most recently, at the 21st Congress of the Soviet 
Union in Moscow, Chou En-lai addressed the 
Commmiists in these words: "The most sacred 
international duty of Communists in all comitries 
at any time is to strengthen the unity of the coun- 
tries in the socialist camp headed by the Soviet 
Union." Chou En-lai said to me one day in 
Chimgking back in 1945, "Why do Americans 
come over here and go back and write that we are 
not Communists, that we are just agrarian re- 
formers?" Then, with a light in his eyes, he said, 
"We are not agrarian reformers; we are Com- 
munists, and we are proud of it !" 

The Peiping regime was imposed by force with 
the volition of only an infinitesimal fraction of 
the Chinese people. Today, after 9 years, less 
than 2 percent belong to the Party. It has kept 
itself in power by bloody purges and the liquida- 
tion of some 18 million of mainland Chinese in 9 
years. No regime representative of its people 
would have to resort to wholesale murder in order 
to keep itself in power. 

An Outlaw Regime 

In our view the security interests of ourselves, 
of Asia, and of the free world as a whole demand 
that we take no action which would create inter- 
national prestige for tliis regime, which would 
increase its capacity for advancing its objective 
of communizing all of Asia, or which would be- 
ti-ay the hopes of those having the will and the 
courage to resist it. 

Even if no security interests were involved, 
there is no basis either for the recognition of Pei- 
ping by the United States or for admission of that 
regime to the United Nations. By every stand- 
ard of national and international conduct, it has 
proven itself to be an outlaw regime. 

Take first the question of recognition by the 

April 6, 7959 


United States. Since the days of Jefferson, dip- 
lomatic recognition of a gov'ernment by the United 
States has involved two major tests. The first 
test is whether the act of recognition would be in 
the interests of the United States. In our view 
the diplomatic recognition of Red Cliina would 
not be in our country's national interests for 
reasons I have ali'eady mentioned. The other test 
for diplomatic recognition involves not only de 
facto control of territory but also the ability and 
willingness to live up to international obligations. 
What is the record of Peiping by this standard? 

Gaining control of the mainland in December 
1949, it promptly repudiated the international ob- 
ligations of China. It confiscated without com- 
pensation properties of other nationals valued in 
the hundreds of millions of dollars, something 
over $1 billion for the United Kingdom alone. 
It demanded and received as blackmail money 
hmidreds of thousands of dollars additional be- 
fore it would issue exit visas for the personnel 
operating these properties. It threw foreign citi- 
zens into jail without trial and subjected many 
of them to the most inliiunan tortures. It has 
flagrantly violated the Korean and Indochina 
armistice agreements. It has failed to live up to 
its commitment to us, reached after long negoti- 
ation and publicly announced in Geneva on Sep- 
tember 10, 1955, to release expeditiously all 
American citizens imprisoned in China.^ Five 
are still being held as political hostages. 

If any of you are inclined to say that, if we 
can tolerate the broken agi'eements of the Soviets, 
we should be able to overlook the long record of 
broken agreements by the Red Chinese, I would 
remind you that Soviet perfidy in breaking inter- 
national agreements followed rather than pre- 
ceded recognition by the United States. 

The Bolsheviks seized power in 1917. Never- 
theless we continued for 16 years to recognize the 
Kerensky goveniment-in-exile. By 1933 it seemed 
that the Communist regime in Moscow might in- 
deed be considered a peaceful member of society. 
It had committed no action of anned aggression 
for more than a decade. It had accepted the in- 
dependence of Estonia, Latvia, Lithuania, and 
Poland— all later betrayed. It pledged itself to 
cease its subversive activities in the United States, 
to respect American rights in Russia, and to settle 

Russia's public and private debts to the United 

We need not question that action of recognition 
under the circumstances which prevailed at the 
time. However, who can now doubt that recog- 
nition would not have been accorded even in 1933 
had there been clear warning that Soviet promises 
given in that connection were totally unreliable 
and that aggressive war would soon become an 
instrumentality of Soviet policy. In the case of 
Communist China, we have been clearly and un- 
mistakably forewarned. 

Question of U.N. Membership 

Now how does Commmiist China qualify for 
membership in the United Nations ? 

You will remember when the United Nations 
was organized in 1945 it was exhaustively debated 
whether membership should be based upon uni- 
versality or whether there should be qualifications 
for membei-ship. It was decided that universal- 
ity was not the test but rather that an applicant 
must fulfill certain qualifications. The charter 
finally adopted provides that only peace-loving 
nations willing to assume and live up to the obli- 
gations of the charter are eligible for membership. 
It further provides for the expulsion of members 
who violate the charter. 

Is Red China a peace-loving nation ? 

Let us again look at the record. In Febiniary 
1950, approximately 2 montlis after establishing 
its regime on the mainland, it issued a call to all 
the peoples of Soutlieast Asia to overthrow their 
governments, denouncing their leaders as puppets 
of the imperialists. Before the year was out, it 
invaded Tibet, even though the Peiping regime 
had just promised the Government of India that 
it "would settle the Tibetan question by peaceful 
means." Nine years later it is still engaged in 
fighting the rebellious Tibetans. Also, before the 
year was out, it invaded Korea. For the Korean 
aggression it was denomiced by United Nations 
resolution as an aggressor against the peace of 
the world .^ That resolution is still outstanding, 
and Red China is still defying the United Nations, 
charging that the United Nations are the aggres- 
sors in Korea and therefore without moral com- 
petence to supervise free elections for the miifica- 
tion of the country. Today Red China is stiU 

' For text of announcement, see Bulletin of Sept. 19 
1955, p. 456. 

' For text of resolution adopted on Feb. 1, 1951, see 
ihid., Jan. 29, 1951, p. 167. 


Department of State Bulletin 

threatening war in the Taiwan Strait, stubbornly 
refusing throughout 87 meetings in Geneva and 
Warsaw to renounce war as an instrument of na- 
tional policy. Its philosophy was recently ex- 
pressed by the Peiping Defense Minister in this 
language: "Ours is a policy of fight- fight, stop- 
stop — half-fight, half-stop. This is no trick but 
a normal tiling." 

By no stretch of interpretation of the United 
Nations Charter could Red China qualify under 
that charter as a peace-loving nation eligible for 
membership. Those advocating membership for 
Peiping are not demanding that Red China change 
its ways and conform its policies to United Na- 
tions standards but rather are insisting that the 
United Nations modify its standards to accom- 
modate the lawlessness of Peiping. Those who 
are opposed to such denigration of the United Na- 
tions Charter are charged with being mirealistic 
and denying the existence of 600 million Chinese. 

A Majority Position 

You might think from much of what you read 
in the press that the U.S. occupies an isolated 
position in its refusal to recognize Red China. I 
would remind you that, of the free coimtries of 
the world, 44 recognize the Republic of China, 22 
recognize Peiping. Many of the 22 recognized 
Peiping before it had demonstrated its lawless- 
ness. Of the 13 countries of the Far East, only 
3 recognize Red China. Instead of being isolated, 
we stand with the overwhelming majority of the 
countries of the free world in this position. It is 
essential that this majority continue to stand to- 
gether. Other countries, particularly those most 
exposed to the immediate menace of Conamunist 
power, have been following the lead of such coun- 
tries as yours and ours. Many of them are watch- 
ing anxiously to see what we are going to do. If 
we should begin to break ranks and withdraw 
opposition to the reckless course of tliis aggressor, 
these countries would have no alternative but to 
get on the bandwagon so as not to be left out on 
a limb of opposition, deserted by strong free- 
world support. 

I believe you will agree that the United States 
is the main military obstacle to Commimist overt 
aggression in Asia. You might be interested in an 
evaluation of the Asian situation during the time 
of the Taiwan crisis by the Far East expert of 
the London Economist published October 11 last: 

America's underlying dilemma . . . might be summed 
up in the words : "Little Brother is watching you." 
Anxious little brothers are indeed watching the United 
States from all sides, and their anxieties are of excruciat- 
ingly contradictory kinds. When Mr. Dulles talks tough 
about Quemoy, European stomachs flutter; but when he 
seems to be giving even a mere inch of ground, Far Eastern 
hearts sink. The Quemoy drama is being played out with 
the ringside seats occupied by uneasy Japanese, Koreans, 
Vietnamese, Filipinos, and other Asian peoples who must 
take into account the possibility that some day American 
power may withdraw altogether across the wide Pacific, 
leaving them alone with the newborn Chinese giant. . . . 
And they recall that for years Peking and Moscow have 
canvassed twin projects for "mutual security" systems in 
Asia and in Europe, both of which would exclude the 
United States, so that China would be the dominant power 
in one sphere, Russia in the other. It is the complete dis- 
appearance of the American "presence" from the scene 
that the communists are after. And whether anti-western 
feeling and neutralism are weak or strong in these Asian 
countries and whatever their public postures, they know 
well enough that if the eagle once takes flight, the dragon — 
and perhaps the bear too — will have to be propitiated. 

If America really retires, China's immediate neighbors 
will inevitably again become China's vassals — not neces- 
sarily by military conquest, but by the impossibility of 
their resisting for long the pressure which their huge and 
dynamic neighbor can put upon them in many forms. 

Our view of the China situation is the same as 
that we hold with respect to the other three divided 
comitries of the world where the Commimists now 
exercise de facto control over large areas of terri- 
tory. We consider it to be in our national interest 
and in the interest of the free world as well to 
recognize the Republic of Korea, not the Com- 
munist regime of north Korea; to recognize the 
Republic of Viet-Nam, not the Communist Viet 
Minh regime of Ho Chi Minh; to recognize the 
Federal Republic of Germany, not the Communist 
East German regime. In none of these countries 
do we advocate the use of force to achieve unifica- 
tion, nor do we advocate the use of force for the 
unification of China. In fact, the contrary was 
recently proclaimed in the joint communique of 
President Chiang Kai-shek and Secretary Dulles 
in Taiwan in October of last year.* 

It is now being stated in certain quarters that we 
are drifting to a two-China policy. We do not 
have a two-China policy any more than we have a 
two-Korea policy, a two- Viet-Nam policy, or a 
two-German policy. 

In closing I should like to mention an ancient 
Chinese proverb. It is in the form of question and 

* For text, see ibid., Nov. 10, 1958, p. 721. 

April 6, 7959 


answer. "Wliat is the cure for muddy water ? " the 
question goes ; "Time" is the answer. In the long 
rollcall of history, nazism and fascism will be epi- 
sodes only, dark incidents if you will. So, too, will 
communism be, although the most evil and perva- 
sive of the three. Man will not permanently en- 
dure the cruel enslavement imposed by the ruthless 
regimes of international communism. But his 
liberation will be immeasurably delayed by frus- 
trated appeasement of the forces which enslave 
him. An awful responsibility rests upon us — upon 
our patience, upon our steadfastness, upon our 
courage, and, above all, upon our strength. How 
we counter the menace now posed to our freedom 
will determine the climate of the world for as far 
into the future as we can see. 

Under Secretary Dillon To Attend 
SEATO Council of Ministers Meeting 

Press release 192 dated March 16 

Under Secretary for Economic Affairs Douglas 
Dillon will head the U.S. delegation to the fifth 
annual Southeast Asia Treaty Organization Coun- 
cil of Ministers meeting at Wellington, New Zea- 
land, April 8-10. He will be accompanied by As- 
sistant Secretary for Far Eastern Affairs Walter 
S. Robertson and Department of State Counselor 
G. Frederick Keinhardt. Other members of the 
delegation will be amiounced later. The Coimcil 
will review the accomplishments of the year and 
approve plans for future activities and develop- 
ment of the organization. 

Following the Wellington meeting Mr. Dillon, 
Mr. Robertson, and Mr. Reinhardt will go to 
Baguio, the Philippines, for the annual meeting 
of American ambassadors in the Far East. 

Letters of Credence 


The newly appointed Ambassador of Cuba, 
Ernesto Dihigo y Lopez Trigo, presented his 
credentials to President Eisenhower on March 16. 
For texts of the Ambassador's remarks and the 
President's reply, see Department of State press 
release 190. 

President of El Salvador Concludes 
Talks With President Eisenhower 

White House press release dated March 13 

Joint Statement 

President Jose Maria Lemus, of the Republic 
of El Salvador, today concluded a three-day State 
Visit to Washington, departing for New York at 
9 :15 a.m. 

During the course of the State Visit President 
Lemus and the President of the United States 
held useful discussions on matters of interest to 
both countries. These talks dealt primarily with 
United States-El Salvador relations but also in- 
cluded an exchange of views on significant de- 
velopments in inter- American affairs. 

While in Washington President Lemus ad- 
dressed a Joint Meeting of both houses of Con- 
gress, and he and members of his Party conferred 
with the Acting Secretary of State and other 
United States Government officials. After leav- 
ing Washington President Lemus will visit New 
York, Springfield, Illinois, Houston, Texas, and 
New Orleans and will meet governmental, cul- 
tural, and business leaders. 

The two Presidents reaffirmed the traditional 
close ties of friendship and cooperation between 
their countries and are confident that the people 
of El Salvador and the United States will con- 
tinue to enjoy the benefits of this close association 
in the future. The Chief Executives of the two 
countries recognized that these relationships are 
based upon mutual respect and upon loyalty to 
the same principles of democracy and individual 
rights. The two Presidents noted the fact that 
the United States and El Salvador continue to 
stand shoulder to shoulder with those nations of 
the world acting in defense of these worthy ob- 
jectives and would continue to strive for peace 
and justice. 


The two Heads of State discussed the problems 
created for the coffee-producing nations, includ- 
ing the Republic of El Salvador, by the decline 
of coffee prices in tlie world market. It was recog- 
nized that tlie health of the economy of El Salva- 
dor is heavily dependent upon export earnings 
for this commodity and that the United States is 


Department of State Bulletin 

deeply interested in the situation of the coffee- 
producing countries. It was agreed that the two 
countries would continue to work through the 
Coffee Study Group to seek, in cooperation with 
principal coffee-producing and consuming nations, 
reasonable ways of ameliorating the general situ- 
ation in the world coffee trade. 


The President of El Salvador and the Presi- 
dent of the United States discussed recent de- 
velopments in the field of the economic integra- 
tion of Central America and creation of a common 
market in that area. It was agreed that the es- 
tablishment of an economically sound system for 
the integration of the economies of the Central 
American Republics and for a common market 
comprising those nations would be beneficial and 
would receive the support of the Governments of 
El Salvador and the United States. The two 
Presidents agreed that these steps could make a 
significant contribution to the industrial develop- 
ment of Central America, to the stimulation of 
capital investment in those nations, and to the 
steady improvement of the welfare of the people. 
This subject will receive continued study by the 
two Governments with a view to taking appro- 
priate action to carry on those sound plans already 


The two Presidents discussed the proposals to 
establish an Inter- American Development Bank- 
ing Institution and agreed upon the need to act 
in support of sound plans to establish such an in- 
stitution. They recognized the need for stimu- 
lation of Latin American economic development 
through increased availability of capital from 
both public and private sources on a sound basis. 
It was agreed that such an inter- American insti- 
tution, when properly established, would be a 
valuable supplementary source of capital for the 
nations of Latin America. In accordance with 
this position the United States would also con- 
tinue its present loan programs in Latin America. 


President Lemus and President Eisenhower 
were deeply aware of the need for the greatest 
possible mutual understanding among the Ameri- 

April 6, 1959 

can Republics and believe that the understand- 
ings reached and the personal relationships 
developed will contribute to the steady strengthen- 
ing of the traditionally close inter- American ties. 

Jose Maria LEivrDS 
DwiGHT D. Eisenhower 

U.S. Suggestions for Promoting 
Economic Development of Americas 

Press release 169 dated March 10 

The State Department on March 10 made pub- 
lic the text of the following statement of '■'■United 
States Suggestions for Promoting the Economic 
Development of the Americas.'''' Copies of this 
statement were Tnade available to the delegations 
of the other Government members of the Com- 
mittee of 21 ^ on February 28, 1959. 

The Delegation of the United States is pleased 
to set forth herewith the views of its Government 
on the approach it believes could be employed 
most effectively in promoting economic develop- 
ment in the Americas. 

1. General 

Between the years 1950 and 1957 there was a 
4.5% average annual rate of growth in the 
gross national product of Latin America, a rate 
which substantially exceeded the rate of growth 
in the United States and most, if not all, other 
areas of the free world. There is good reason 
to expect that this rate of growth can not only 
be maintained but accelerated, assuming a con- 
tinuation of inter- American cooperation and the 
pursuit of sound economic policies by all of the 
American states. 

If, however, we speak of increasing per capita, 
as distinguished from national, income, it is neces- 
sary to take into account the rate of population 
growth in the area. Only a half century ago all 
of Latin America had 61 million inhabitants. To- 
day the figure stands at api^roximately 185 mil- 
lion. Forty years from now, if the present rate 
continues, population will treble again and, by 

' For background, see Buixetin of Jan. 26, 1959, p. 144. 


the turn of the century, stand at almost 600 mil- 
lion. The United States and Canada, by com- 
parison, will have, according to these estimates, 
only 312 million inhabitants at the turn of the 

The United States has therefore on various oc- 
casions expressed its agreement with the thesis 
that the task of increasing per capita income is, 
in view of the projected rapid increase in popula- 
tion, so formidable that it must be attacked on all 
fronts by all of the American states. Not only 
must account be taken of the private capital and 
technical know-how required to create employ- 
ment for those who today are under-employed or 
unemployed but also of the need to create new 
jobs for an ever larger number of workers. In 
addition to the expansion of industry and agri- 
culture which this implies, very large additional 
amoimts of public funds will be required for fa- 
cilities which only governments can provide; for 
example, highways, sanitation facilities, hospitals 
and scliools. 

In these circumstances it will be necessary sub- 
stantially and rapidly to increase production. 

A dynamic rate of economic growth is possible 
within a democratic system of government which 
respects the dignity of man and attends to his es- 
sential needs, both material and spiritual, pro- 
vided there is a concerted effort on the part of 
individuals to expand production supported by 
the continuous administration of sound govern- 
ment policies. The rapidity with which the na- 
tional product can be increased depends in large 
measure on the sacrifice which peoples and govern- 
ments elect to make. 

It is against this general backgi'ound that the 
Government of the United States considers that 
all facets of the problem of increasing living 
standards need to be appraised. These facets can 
be divided into various specific separate 

2. Specific 

(a) Increasing the Flow of Public Funds Into 
Economic Development Projects. 

It would not be appropriate for the United 
States to pass judgment on the feasibility of the 
adoption by other governments of policies to en- 
courage domestic savings and to mobilize larger 
amounts of domestic capital for investment and 
productive enterprise. 

Insofar as the United States is concerned, there 
have existed for some time very heavy taxes on 
individuals and corporations. Notwithstanding 
these tax burdens, the United States in recent 
months has, within the spirit of Operation Pan 
America, undertaken to mcrease in very substan- 
tial amounts its public funds available for eco- 
nomic development assistance to Latin American 
countries.^ The magnitude of such amounts is 
indicated by the following specific actions of the 
Government of the United States : 

(a) Current negotiations for the formation of 
an inter-American financial institution, the total 
capital of which should initially approximate 
$1 billion, a substantial proportion to be contrib- 
uted by the United States ; 

(b) A recent increase of $2 billion in the lend- 
ing authority of the Export-Import Bank, which 
conducts close to one-half of its total operations 
in Latin America ; 

(c) President Eisenhower's request of Febru- 
ary 12, 1959 for Congressional authorization to 
increase the United States contribution to the In- 
ternational Monetary Fund by $1,375,000,000.' 
This will facilitate increased quotas for Latin 
America and would thus materially assist coun- 
tries in balance-of -payments difficulties. 

(d) President Eisenhower's request of Febru- 
ary 12, 1959 for Congressional authority to in- 
crease by $3,175,000,000 the contingent liability of 
the United States to facilitate the doubling of the 
lending facilities of the International Bank for 
Reconstruction and Development.^ A substantial 
proportion of this increase may be expected to be 
utilized in Latin America. 

(e) Increased resources for the Development 
Loan Fund. Requests have been made to the 
United States Congress for a supplementai-y $225 
million for fiscal year 1959 and $700 million for 
fiscal year 1960. 

We agree that even larger amounts of public 
funds from all American Governments will be re- 
quired for economic development in the future. 

° For remarks by Under Secretary Dillon before the 
Special Committee of the Council of the Organization of 
American States To Study the Formulation of New Meas- 
ures for Economic Cooperation, together with a declara- 
tion approved by the Committee at its closing session, 
see \:bia., Jan. 12, 1959, p. 48. 

^ lUa., Mar. 9, 1959, p. 347. For statements by Under 
Secretary Dillon and Secretary of the Treasury Robert B. 
Anderson, see ibxA., Mar. 30, 1959, p. 445. 


Department of State Bulletin 

While the Government of the United States is 
unable, by the nature of the democratic process, 
to make further commitments at this time for fixed 
amounts over a period of years, it may confidently 
be exjjected that the United States jjeople and 
Government will cooperate wholeheartedly in sup- 
porting the efforts of other Governments to in- 
crease the rate of development, looking toward 
fulfillment of the American aspiration of imj^rov- 
ing the living standai'ds of all the Americas. 

(b) Increasing the Flow of Private Funds Into 
Economic Development Projects. 

The ability of all American Governments to 
provide funds through taxation for economic de- 
velopment is limited. The magnitude of the task, 
rather than doctrinaire reasons, requires, there- 
fore, that new efforts be made to attract larger and 
larger amounts of private capital to supplement 
public funds. 

In the past few weeks various delegations have 
considered measures which can be taken by the 
capital importing and capital exporting countries 
to facilitate a greater flow of private investment. 

The United States would also support sound 
programs for increasing domestic savings and mo- 
bilizing them for investment in productive enter- 

(c) The Need for Better Planning of Economic 

The Government of the United States shares 
the view that there is an urgent need for better 
development planning. 

Differences in the economies of the various 
American nations suggest that planning would be 
more meaningful and effective if it be done on a 
national basis. We have three specific suggestions 
in this regard : 

First, a draft proposal has been submitted for 
certain economic studies to be undertaken by the 
Secretariat of the Inter- American Economic and 
Social Council on a country-by-coimtry basis. 
These studies should, by developing basic data re- 
garding economic development in each country, 
prove most useful to governments in their eco- 
nomic development planning. 

Second, there should be created within the new 
inter-American banking institution a technical 
assistance department, staffed with the best tech- 
nicians available, for the purpose of advising with 

April 6, 7959 

500556—59 3 

governments concerned on the formulation of eco- 
nomic development policies and plans, assigning 
priorities among projects and assisting in the 
preparation of projects for both ijublic and private 
financing. Firmly believing that this type of as- 
sistance will be of prime value, the United States 
has stated its support of the proposal that it be 
established. The draft charter of the new organi- 
zation deals with this subject. 

Third, the United States has suggested an an- 
nual high-level meeting of economic experts to 
exchange, on an informal basis, information and 
views on current economic problems, particularly 
as they relate to economic development. This 
would provide all governments with an oppor- 
tunity to review periodically the progress being 
made and to exchange ideas for improvements 
that could be made in their individual and com- 
mon efforts. 

(d) Increased Trade a.s a Means of Promoting 
Economic Development. 

The United States considei-s that increased 
trade between Latin America and the free world 
is indispensable to rapid economic development. 
Although conscious that under the democratic 
system which we all cherish and defend occasional 
setbacks will be suffered, we have and will con- 
tinue to cooperate, within the framework of the 
GATT [General Agreement on Tariffs and 
Trade] , to remove barriers to international trade, 
including especially barriers to the sale of Latin 
American primary products. 

Within this principle of increased international 
trade, the United States also supports the efforts 
of Latin American Governments to create, in co- 
operation with ECLA [Economic Commission for 
Latin America] , one or more regional markets de- 
signed to increase trade within the area, to pro- 
vide larger international markets, and to improve 
efficiency of production through competition so 
that more goods may be made available to the 
public at cheaper prices. 

(e) Search for Means To Prevent Excessive Fluc- 
tuations in the Prices of Primary Products as a 
Mean.s of Promoting Economic Development. 

The Governments of the American states are 
already aware of the cooperation of the United 
States in facilitating international arrangements 
by exporting countries to stabilize the coffee 


While we do not believe that commodity agree- 
ments, in general, serve the objective of obtaining 
more efficient production and distribution, we rec- 
ognize that they may serve temporarily to avert 
severe economic dislocations and to furnish time 
for governments to remove basic causes of im- 
balances and we have therefore also cooperated 
in the search for ways of bringing world produc- 
tion of lead and zinc into better balance and stand 
ready to examine other problems on a commodity 
by commodity basis. The United States is par- 
ticipating in the preparation of a draft resolution 
on this subject. Work is actively proceeding. 

(f ) lA-ECOSOC Consultation. 

Some American Governments have suggested 
from time to time that inter-American consulta- 
tions and understanding on economic problems of 
hemisphere interest would be facilitated by the 
constitution of the lA-ECOSOC [Inter- Ameri- 
can Economic and Social Council] as the OAS 
forum for this purpose. 

(g) Sound Economic Policies. 

An indispensable aspect of the problem of eco- 
nomic development is the continuous application 
of sound monetary and fiscal policies. In recent 
years, progress has been made in obtaining a bet- 
ter public understanding of this problem, and 
some governments are already taking courageous 
measures to restore confidence in their currency 
and to put into effect policies which facilitate 
sound and rapid development. The Government 
of the United States continues to offer its cooper- 
ation in programs designed to accomplish this ob- 
jective. The increased financial resources which 
have been made available to the Export-Import 
Bank and which are to be made available to the 
International Monetary Fimd under current 
United States policies should make this cooper- 
ation even more effective. 

(h) Need for Low Cost Housing. 

The need for adequate low cost housing in 
Latin America constitutes a major problem which 
requires adoption of effective policies and pro- 
grams by the various governments. Convinced 
through experience that private investment offers 
the most promising source for housing develop- 
ment, the United States is recommending specific 
technical and other assistance designed to aid in 

development of savings and loan institutions in 
order to mobilize savings wliich can be utilized 
under appropriate Government guidance and in- 
surance, both of savings and of mortgages. Of 
similar importance is the need of technical assist- 
ance to the housing construction and building ma- 
terials industries. 

(i) Support for Increased Agricultural Coopera- 

Agriculture as a principal economic activity of 
the Latin American countries offers an area in 
which inter- American cooperation can prove most 
fruitful. The Inter- American Institute of Agri- 
cultural Sciences is tlie agency of the Organiza- 
tion of American States dedicated to the improve- 
ment of agriculture in the Americas through 
training and research activities. Reaffirmation of 
the need to strengthen the activities of the OAS 
in the agricultural field is highly desirable, as is 
also recommendation for the fullest possible sup- 
port and participation of all member states in the 
Inter-American Institute of Agricultural Sci- 

3. Concluding Comments 

Doubtless the proposals referred to above, if 
they meet with the agreement in principle of 
others, will be modified and perfected in many 

The Government of the United States takes 
this opportunity to reiterate its support of Oper- 
ation Pan America, so well stated by President 
Juscelino Kubitschek.° In fact, the United 
States has doubly welcomed President Kubit- 
schek's initiative, which it believes restates a fun- 
damental attitude inherent to but transcending 
our current deliberations. 

It has been within this concept that the United 
States has already taken significant initiatives, 
some involving major policy changes. As these 
are directed toward the objectives expressed in 
Operation Pan America, they do, in fact, con- 
stitute an integral part of the operation itself. 

' For a U.S. statement on the signing of the Protocol of 
Amendment to the Convention on the Inter-American In- 
stitute of Agricultural Sciences on Jan. 7, see ibid., Jan. 
26, 1959, p. 126. 

' For an exchange of correspondence between President 
Eisenhower and President Kubitschek of Brazil, see ibid., 
June 30, 1958, p. 1090. 


Department of State Bulletin 

As such, it is the belief of the United States that 
these initiatives will serve to supj)lement the meas- 
iires and recommendations now in preparation in 
the Working Group of the Committee of 21. 

The problem of increasing productivity at a 
pace adequate to meet the needs of the fast-grow- 
ing populations of Latin America is perhaps the 
most important challenge of our times. It can 
be met if the American peoples and their govern- 
ments each take the necessary measures in the 
same spirit of cooperation which characterizes 
inter-American relations. The people and Gov- 
ernment of the United States will, within the 
limits of their ability, bear their share of the 

February 28, 1959 

U.S. and Industry Leaders Discuss 
European Coal Situation 

f Press release 182 dated March 13 

Eepresentatives of U.S. coal producers, ex- 
portere, and mine workers met on March 13 with 
W. T. M. Beale, Deputy Assistant Secretary of 
State for Economic Affairs, to discuss current de- 
velopments in the European coal situation. El- 
mer Bennett, Under Secretary, and Eoyce A. 
Hardy, Assistant Secretary, Department of the 
Interior, and Millard Cass, Deputy Under Sec- 
retary of the Department of Labor, also partici- 
pated. Tliis was the fourth meeting in the con- 
tinuing consultations between leaders of the U.S. 
coal industry and Government officials that have 
taken place since last September, when the Fed- 
eral Kepublic of Germany imposed licensing con- 
trols on coal imports.^ 

Reports of action by the European Coal and 
Steel Commimity in dealing with the coal prob- 
lem on a Community-wide basis were the focal 
point of the discussion. Mr. Beale outlined the 
proposals which the ECSC was considering and 
which involved curtailment of U.S. coal exports 
to Europe. He reported in detail on the steps 
which had been taken by the U.S. Government to 
safeguard the interests of the U.S. coal industry in 
this important European market. He outlined a 
program of continuing action which the U.S. Gov- 

ernment was following in its efforts to mitigate 
the adverse effects of the European coal surplus 
problem on the American coal industry. The 
U.S. coal industry and the U.S. Government rep- 
resentatives agreed that strong efforts should be 
made to prevent the burdens involved in bringing 
about an adjustment in European coal production 
from being imposed primarily on foreign coal 
exports to Europe. Additional comments and 
suggestions which the U.S. coal industry and 
labor representatives offered will be taken into 
account by the U.S. Government in its efforts to 
foster and protect U.S. coal exports to the Euro- 
pean market. 

Representatives of the U.S. coal industry pres- 
ent at the meeting included: D. T. Buckley, 
Castner, Curran & Bullitt, Inc., and the Coal 
Exporters Association of the United States, Inc. ; 
James W. Haley, Jewell Ridge Coal Sales Co., 
Inc., Washington, D.C.; S. T. Hutchinson, Gen- 
eral Coal Co., Philadelphia ; Peter F. Masse, C. H. 
Sprague & Son Co., New York; F. F. Estes, Ex- 
ecutive Secretary, Coal Exporters Association; 
and Jolm Owens, representing the United Sline 
Workers' Union of America. 

U.S.S.R. Selects Final Four Films 
Under Exchange Agreement 

Press release 202 dated March 19 

The Department of State annoimced on March 
19 that it has been notified by the Soviet Union of 
its selection of the final 4 of the 10 pictures pur- 
chased from American film companies under the 
cultural, technical, and educational exchange 
agreement between the United States and the 
U.S.S.R.^ The four motion pictures selected are: 
"Rhapsody," "Man of a Thousand Faces," "The 
Seventh Voyage of Sinbad," and "Beneath the 
Twelve Mile Reef." 

The six pictures previously selected by the Soviet 
Union to be purchased under the agreement from 
American companies are : "Lili," "The Great Ca- 
ruso," "Oklahoma !," "The Old Man and the Sea," 
"Marty," and "Roman Holiday." 

' For background, see Buixetin of Oct. 13, 1958, p. 578. 
April 6, 1959 

' For text of agreement, see Bulletin of Feb. 17, 1958, 
p. 243 ; for text of a memorandum of agreement on film 
exchanges, see ibid., Nov. 3, 1958, p. 697. 


With this announcement the Soviet Union has 
selected the 10 fihns which they have agreed to 
purchase as an initial step in carrying out the pro- 
visions of the motion picture section of the cultural 

Seven Soviet motion pictures have been selected 
by U.S. film companies for distribution in the 
United States. The titles of these films are : "The 
Cranes Are Flying," "Swan Lake," "Circus 
Stars," "Othello," "Don Quixote," "Quiet Flows 
the Don," and "Tlie Idiot." 

Arrangements are currently being discussed re- 
garding a premiere to be held in Moscow and 
Washington of the first film released in each coun- 
try under the terms of this agi'eement. 

DLF Releases Summary 
of Loans to Date 

Press release 175 dated March 11 

The U.S. Development Loan Fund to date has 
made or approved 71 loans totaling $631,756,000 
to public and private borrowers in 33 countries 
according to a listing made public on March 11. 
In addition, $5,800,000 worth of DLF loans have 
been approved but letters of advice containing 
basic terms have not yet been laid before the loan 
applicants; and a further $46,250,000 have been 
committed by the DLF to cover loan programs in 
advance of agreement on specific projects. DLF 
loan commitments to date thus total $683,806,000. 

The Development Loan Fund is a U.S. Govei'n- 
ment corporation established to help individuals 
and governments develop the economic resources 
and productive capacities of free nations. It lends 
money for constructive purposes for which capital 
cannot be obtained from other sources, accepting 
repayment in local currencies if necessary. 

The new list includes brief descriptions of all 
loans signed or approved by the Fund from its 
inception on June 30, 1957, through February 28, 
1959. Copies are available at the DLF offices at 
1913 1 Street NW., Washington 25, D.C. 

The list shows that DLF loan operations to 
date break down as follows : 

Fourteen loans totaling $50,040,000 to borrowers 
in 10 Latin American countries ; 

Seven loans totaling $28,840,000 to borrowers in 
5 countries m Africa ; 

Five loans totaling $53,100,000 to borrowers in 
3 EurojDean countries ; 

Nine loans totaling $112,200,000 to borrowers 
in 5 countries in the Near East; 

Seventeen loans totaling $248,450,000 to 
borrowers in 3 countries in South Asia ; and 

Nineteen loans totaling $139,126,000 to borrow- 
ers in 7 Far Eastern countries. 

The principal borrowing countries were India, 
with 7 loans totaling $175,000,000 ; Pakistan, with 
7 loans totaling $70,200,000 ; Iran, $47,500,000 (one 
loan) ; and Taiwan (Formosa), M'ith 8 loans total- 
ing $39,486,000. 

Development Loans 


The United States and the Government of the 
Federation of Malaya on March 18 signed two 
agreements by which the U.S. Development Loan 
Fund will lend the Federation up to $20 million to 
assist in construction of roads and bridges through- 
out the Federation and tlie development of deep- 
water port facilities in the North Klang Straits. 
(For details, see Department of State press release 
200 dated March 18.) 

Republic of China 

A $686,000 loan to the Land Bank of Taiwan to 
help expand the fishing industry of the Eepublic 
of China, an important source of food for the 
island's expanding population, was signed on 
March 18 by officials of the U.S. Development Loan 
Fund and the Chinese Embassy. (For details, see 
Department of Stat© press release 198 dated 
March 18.) 


Department of State Bulletin 


The Mutual Security Program — An Indispensable Support to U.S. Foreign Policy 

Following are statements inade before the House 
Foreign Affairs Committee^ during hearings on 
mutual security legislation, iy Acting Secretary 
of State Christian A. Herter, Under Secretary of 
State Douglas Dillon, Secretary of Defense Neil 
H. McElroy, and Gen. Nathan F. Twining, 
USAF, chairman of the Joint Chiefs of Staff. 


Press release 186 dated March 16 

Secretary Dulles has asked me to convey to you 
his regret that he cannot be with you to open these 
hearings on the mutual security program.^ As 
you know, he believes most deeply that this pro- 
gram is of vital importance to the American peo- 
ple and that it is an indispensable support to the 
conduct of our foreign policy. I am sure you are 
aware that the proposals now before you were 
prepared under Secretary Dulles' direction earlier 
in the year. 

I think you know my own feeling about this pro- 
gi'am. I have followed it with the greatest inter- 
est since before the inauguration of the Marshall 
plan. I look back with a great deal of satisfac- 
tion to the opportunity I had to work with many 
members of this committee and others still in the 
House on the development and enactment of that 
program. I also recall with appreciation my as- 
sociation with this committee m the development 
of the military assistance program and in the 
development and enactment of the point 4 tech- 
nical cooperation program. 

One of my first responsibilities on returning to 
Washington in 1957 was to help work out plans 
for the Development Loan Fund — that important 

' For the President's message to Congress on the mutual 
security program, see Bulletin of Mar. 30, 1959, p. 427. 

advance in the mutual security program acted 
upon by your committee 2 years ago. 

I mention these programs because they still con- 
stitute major categories of the mutual security 
program. I mention them further because I recall 
so clearly how in enacting these measures the Con- 
gress believed it was providing the e.xecutive 
branch with tools necessary to the successful con- 
duct of our foreign relations. Yet at the same 
time many of us felt concern, wliich I shared, as 
to how well the programs would work. I feel that 
I can report to you from my personal experience 
of the 2 years I have now spent in the Depart- 
ment of State that I have found that our hopes 
for the effectiveness of these programs have been 
realized to an miusual degree. 

I. Our Mutual Security Program — Essential to 
Survival as a Free Nation 

The essence of my experience and of my belief 
is that the military, economic, and teclinical pro- 
grams of our mutual security system — developed 
over the last 10 years — are vital instruments of 
our security. If we do not persist in their vigor- 
ous and continued application, our foreign policy 
will become ineffective. 

In the face of the great challenges which con- 
front our comitry — and indeed the entire free 
world today — the mutual security program now 
before you is fundamental to the peace of the 
world, our own future welfare and progress, and 
in the years ahead the survival of our American 
Nation and our American way of life as we now 
know it. 

II. The Challenges We Face 

These great challenges with which we are 
faced are three in number. 

Most immediate is the threat of Commimist im- 
perialism. The world's second most powerful na- 

April 6. 1959 


tion, the Soviet Union, together with the most 
populous, Communist China, have the clearly an- 
nounced intention of imposing their way of life 
over the rest of the world. The Sino-Soviet lead- 
ers have pursued their course with energy and 
skill. They dominate a third of the world's peo- 
ples — populations expanding at a startling rate. 
They have at their disposal great resources, strong 
military forces, highly developed scientific and 
technical capacities, as well as long-range plans 
of economic penetration. 

Beginning in 1954 the Sino-Soviet bloc began 
the intensive use of economic and military as- 
sistance programs to gain greater influence in the 
less developed countries, particularly in the vast 
areas of Asia and Africa. This program has been 
accelerated during the past year. 

We have no excuse for any doubt as to the pur- 
pose or seriousness of this drive. Mr. IGirush- 
chev in his speech to the 21st Party Congress only 
6 weeks ago stated it quite plainly for us : 

Economics is the main field in which the peaceful com- 
petition of socialism and capitalism is taking place, and 
we are interested in winning this competition in a his- 
torically brief period of time. 

. . . with the support of leading socialist countries some 
countries which lagged behind in the past could switch 
over to a socialist regime, and after a certain phase of 
development to communism, bypassing the capitalist phase 
of development. 

The second challenge stems from the march to- 
ward independence and economic viability of co- 
lonial peoples. The consequence of this revolution 
of rising expectations has been that, since World 
War II, more than a quarter of the world's pop- 
ulation has been struggling to make new-found 
freedoms a permanent way of life. These peoples 
earnestly desire, and as earnestly need, technical 
skills, new institutions, and development capital 
to create order and progress in their newly estab- 
lished nations. Their parents and grandparents 
were resigned to poverty and disease. But the new 
generation, although still surrounded by poverty 
and disease, is determined — at almost any cost — 
to change these conditions. 

These people value national freedom and the 
idea of democracy. But for many the need and 
desire for improvement in their standards of liv- 
ing is so compulsive that they will choose to ad- 
vance under duress and dictatorship if they be- 
lieve that to be the only way. Commimist prop- 

aganda repeatedly insinuates the theme that com- 
mmiism is their oidy hope. 

The Communists have recognized this great cur- 
rent of change and are doing their utmost to 
channel it into a world force which will facilitate 
the spread of international communism and even- 
tually be controlled by it. If we consider the fact 
that the population of the world is expected 
nearly to double in the next generation, we will 
appreciate what is at stake — not so much for our- 
selves or the Sino-Soviet world as for the people 
in the lands between us whose decisions will in- 
creasingly affect the peace in which we live and 
the freedoms we enjoy. 

The third challenge lies in the interdependence 
of the free nations of the world. Rapid advances 
in transportation and communications have 
brought the most distant parts of the world to- 
gether. We are closer to New Delhi in time than 
we were to San Francisco only a generation ago. 
The tremendous demand of our military power 
and our peaceful industry for raw materials is 
creating an increasing need for supplies from out- 
side our own Nation. Even more acutely, the 
enormous populations and the military forces 
maintained by the Communist bloc are increas- 
ingly creating the need for reliance of the free- 
world nations upon each other for common 

III. The Objectives of Our Foreign Policy 

I have said that the mutual security program 
supports our efforts to achieve the objectives of 
our foreign policy in the face of these challenges. 
What are these objectives of our foreign policy ? 

First, we are trying to establish a stable polit- 
ical world order, a necessary prerequisite to 
which is a durable peace. 

Second, we are encouraging the economic 
growth of free nations, for both practical and 
humanitarian reasons. 

Our third objective, beyond the limits of na- 
tional survival and progress, is to gain ever-wid- 
ening acceptance of the idea of the freedom and 
dignity of the human individual. 

IV. The Mutual Security Program In Support of 
Our Foreign Policy Goals 

These, then, are the tliree main themes of chal- 
lenge and the three main themes of our foreign 
policy. If we consider the principal categories 


Department of State Bulletin 

of the mutual security program we will see in 
them the mechanisms essential to attain our policy 
objectives in the face of the challenges confront- 
ing us. 

Military considerations come to mind first be- 
cause of their immediacy. In the face of the So- 
viet threat it has been only common sense to de- 
velop a worldwide system of alliances with 42 
nations in order to make our defenses all the more 
powerful because they are collective. 

The effectiveness of this system would not be 
possible without the military assistance, defense 
support, and the special assistance provided under 
the mutual security program. Secretary McElroy 
and other witnesses will deal at greater length 
with the military implications of mutual security. 

Through the help of the mutual security pro- 
gram our friends in the free world support ground 
forces totaling moi"e than 5 million men stationed 
at points where the danger of local aggression is 
greatest. These nations man an air force of about 
30,000 aircraft, of which nearly 14,000 are jets. 
They have also made available to our use some 
250 bases in strategic locations, bases which are 
indispensable to the full effectiveness of our deter- 
rent powers. These allies have also contributed 
some $141 billion for their defense effort — to 
which we have added a total of some $22 billion 
for arms, equipment, advanced weapons, and 

In addition to the great power buildup in the 
territories of our Western European allies, we 
are aiding 12 other nations, both by military as- 
sistance and defense support, to create and main- 
tain forces whose existence supports our foreign 
policy objectives. These nations together provide 
3 million armed forces — of this 5 million I have 
just mentioned. 

The magnitude of these figures illustrates the 
larger principle which we must not lose sight of — 
that in working together the free nations bring 
to each other a defensive capacity we would never 
be able to afford if we tried to do it alone. Just 
as our partners rely on us for the strength we 
contribute to the common defense, so are we re- 
liant on them for the vital contribution they make. 

Much time and effort has gone into the process 
of welding together this military shield with the 
idea that, under the increased safety which it 
affords, we may grapple with some of the other 
realities of our time. 

In less dramatic but equally compelling terms, 
tlie mutual security program is mounting an in- 
creasing effort to help the less developed nations 
stabilize and develop their economies. This need 
should be clear when we consider that 21 nations 
in Asia and Africa have won their independence 
since World War II. With 750 million people in 
these countries who need food, clothes, housing, 
and jobs it is understandable that we should help 
them consolidate an economic base upon which 
to build their political and social institutions im- 

The principal instrument of the mutual secu- 
rity program to support tliis second major goal 
of our foreign policy is the Development Loan 

In the short period — little over a year — in 
wliich the Fund has been in operation, it has 
realized the hopes which were held for it as a new 
means of forwarding our foreign policy. Al- 
ready nations striving to build a foundation for 
economic growth are turning to it for capital. 
Some $2.9 billion in applications for help on 
projects of basic economic importance have been 
taken under consideration by the Fimd. We be- 
lieve the Fund is so important that great effort 
has been expended getting it under way rapidly. 
For all practical purposes it has already ex- 
hausted its present capital. 

I should like to emphasize to you as strongly 
as I can that the full new capital the President 
has requested is the barest minimum to enable this 
soimd and unique institution to continue as an 
essential support of our policy of achieving eco- 
nomic development in less developed areas. 

Economic growth and, indeed, progress toward 
full realization of political independence call for 
technical skills in greater abundance than now 
available in many of the less developed areas. 
We provide these skills through the point 4 tech- 
nical cooperation program first written by this 
committee 10 years ago. This fundamental pro- 
gram to help others advance by sharing our tech- 
nical know-how has worked with increasing 
effectiveness in the basic fields of agriculture, 
health, and education, as well as in labor, industry, 
and social welfare. The increase in the request for 
fiscal year 1960 is to meet new and increasing 
needs in Africa, Asia, and Latin America. 

The program among our neighbors to the south 
is increased by one- fourth. This increase in tech- 

April 6, 1959 


nical cooperation is a corollary to the proposed 
inter- American bank now being planned. 

I have already refen-ed to special assistance as 
a major support of this common defense of the 
whole free world. It has another function as well. 
It includes those funds for health and educational 
programs of immense importance to wide areas 
of the world. Primary among these is the malaria 
control program which reaches directly into the 
homes and lives of over half the human race. In 
addition we are developing a program to assist 
in establishing pure water supplies which may also 
reach directly to great numbers of the ordinary 
citizens of the nations we seek to help. Special 
assistance also includes increased support for cer- 
tain of our American-sponsored schools abroad 
which have become centers of education for young 
people who have become leaders of their own na- 
tions. Our help to these schools wiU provide in- 
valuable educational facilities for new generations 
of future leaders. 

I would like to invite yoirr particular attention 
to the contingency fund. It would be difficult to 
overstate its importance. Hard experience has 
shown us that in the constantly changing world 
situation with which we are dealing, emergencies 
will often arise for which a contingency fund, un- 
programed and available, will be indispensable. 

V. The Cause of All Mankind 

These many elements of mutual security — 
whether military, economic, technical, or social — 
are interrelated and mutually support each other. 
They are coordinated according to long-term needs 
in widely separate areas and to sudden demands 
on one spot of the map. But these programs, how- 
ever diverse, have unity in that they focus on the 
essential problems of the world in relation to the 
guiding principles of our foreign policy. Our 
aim, while recognizing what is most immediate — 
the news that catches the headlines — is not to lose 
sight of what is equally real, the slower develop- 
ment of liberty and the techniques of democracy 
in other lands. 

I do not believe that our cause today is any less 
great than when Benjamin Franklin described it 
at the birth of our Nation as "the cause of all 

The mutual security effort has deep ideological 
roots in our history. We believe that the ideas 
of 1776 can be made increasingly attractive and 

applicable to the rest of the world. Our effort 
also stems from the basic urge of self-preservation 
translated into 20th century terms. 

Self-preservation these days is not a waiting 
game. It demands imagination and initiative. 
This is why our response to the challenge of the 
1960's is not so much a reaction to the dangers 
of international communism as it is an affirmative, 
flexible, and spontaneous demonstration of our 
ability to learn and lead in a world of multiplying 

The mutual security program must be carefully 
scrutinized and intelligently administered. But 
the fact of its existence reflects a larger apprecia- 
tion: that the need to help other people — on a 
long-term, sound financial basis — would exist be- 
cause of the other great revolutionary changes at 
work in the world, even if the threat of com- 
munism and the Sino-Soviet bloc did not exist. 
Revolutionary communism higlilights the perils 
of our time. But it does not lessen the plight of 
many of our neighbors in the world. 

I think this is a healthy concept of national 
security. Security must be mutual or it does not 
exist. We have had the good fortune to survive 
our own revolution and to have had almost 200 
years to reap its benefits. With the boundaries of 
so many other parts of the world still changing — 
or, as in Africa, still forming — we must develop 
a sensitive capacity to deal with revolutionary 
thrusts which will be with us long after, as we may 
hope, the thrust of international communism will 
have lost its drive. 

The mutual security funds asked by the Presi- 
dent total $3.9 billion. This works out, as it af- 
fects the taxpayers you represent, at about 5 per- 
cent of our national budget and less than 1 percent 
of the national production of our country for the 
coming year. In my considered opinion, these mu- 
tual security fimds will contribute as much to the 
achievement of the gi'eat objectives of our national 
life as comparable expenditures for any other ac- 
tivity of our Government. 

Our allies, as well as friends in less developed 
nations, look to us for leadership and for reassur- 
ance that their trust in us is justified. If I were 
asked to summarize what this program does for 
us I would say that militarily it supplies the 
shield ; politically it promotes freedom and stabil- 
ity; economically it improves conditions of life; 
psychologically it displays our determination to 


Department of State Bulletin 

continue a role of leadership in the fight for free- 
world objectives. For small nations, some of them 
half a world away bordering on the Communist 
power complex, this tangible proof of our concern 
for their independence and welfare is of vital con- 
sequence. Above all, the mutual security program 
identifies America with the aims and aspirations 
of nations seeking freedom, equality, and better 
conditions of life. 


Press release ISS dated March 17 

I am glad to be with you once again as you 
begin your consideration of the mutual security 
program for fiscal year 1960. 

We propose, subject to your approval, to pro- 
ceed this year in much the same fashion as before. 
You have already heard the testimony of the Act- 
ing Secretary of State, and other witnesses to 
follow will endeavor as fully and frankly as pos- 
sible to provide the committee with all of the in- 
formation it believes necessary to enable it to reach 
its decisions on this program. 

I propose to speak briefly on (1) the presenta- 
tion materials which have been prepared and the 
testimony which is planned, (2) the relatively few 
changes in legislation which are proposed, (3) the 
amounts proposed to be authorized for the various 
categories of aid (on which I will elaborate in 
executive session), (4) the administration of the 
program, (5) some related matters of significance, 
and (6) the overall importance of the program to 
the United States. 

I. The Presentation 

The presentation materials follow closely the 
pattern of last year. You have, as has each Mem- 
ber of Congress, the unclassified book which de- 
scribes the program proposed in considerable de- 
tail. You also have the more elaborate and 
detailed presentation books which are before you. 
There are seven volumes this year rather than six, 
an additional one having been added to give full 
uif ormation on the Development Loan Fund after 
its first full year of operation. "V\niile it has been 
necessary, as heretofore, to classify some of the 
material in these volumes, every effort has been 
made to keep such classification to a minimum 
particularly in the World Wide Summary State- 

ments volume. The DLF volume is wholly un- 
classified. Classified sections are indicated by 
shading as was the case last year. 

The World Wide Summary volume is a com- 
prehensive description of the entire program. 
We have endeavored to improve it this year so 
that it can serve adequately as a description of 
the entire program except when very detailed in- 
fonnation on individual countries and programs 
may be desired. This book is our answer to those 
of you who expressed a desire last year for a 
simplification of our presentation books. This 
year it contains additional material describing in 
some detail the methods of programing employed. 
Subject to the committee's approval we will pre- 
sent testimony to show how these methods have 
been applied in actual programs. Another new 
feature is that under "Defense Support" and "Spe- 
cial Assistance" we cite for each country receiv- 
ing such aid the specific reasons giving rise to 
the need for aid. These concise statements are 
of course fully amplified in the regional volumes. 
Following the testimony of regional witnesses, we 
would appreciate an opportunity to provide a 
final recapitulation of the programs proposed 
under each category of aid. 

Mr. Philander P. Claxton, Deputy Assistant 
Secretary of State for Congi-essional Eelations, 
who is here with me, is representing me in co- 
ordinating the executive branch presentation and 
will be available to assist you throughout your 

II. The Legislative Changes Proposed 

The legislation proposed this year involves a 
minimum of new provisions. I will touch briefly 
on four proposed amendments to the basic Mu- 
tual Security Act of 1954 and on two new pro- 

First, a new section 401 is added which declares 
the United States policy of support for the United 
Nations Emergency Force (UNEF) and author- 
izes the use during fiscal year 1960 of special as- 
sistance funds for voluntary contributions to the 
budget of UNEF. This new section is primarily 
intended to give statutory emphasis to the im- 
portance the United States attaches to the activi- 
ties of UNEF. 

Second, section 413(b) (4), which relates to the 
investment guarantee program, is amended by 
adding to the enumerated risks which may be 

April 6, J 959 


insured against under the program the risks of 
revolution, insurrection, or civil strife arising in 
connection with war, revolution, or insurrection. 
The ceiling on the face value of guarantees which 
may be issued is also increased from $500 million 
to $1 billion. This amendment expands the in- 
vestment guarantee program to cover risks which 
have become of particular concern to United 
States firms abroad and permits the executive 
branch to meet the accelerated demands for guar- 
antees without any increase in new obligational 

Third, section 505(b), which relates to loan as- 
sistance and sales, is amended by deleting the 
present requirement that amounts received in re- 
payment of loans made under the Mutual Se- 
curity Act of 1954, other than by the Development 
Loan Fund, shall be held by the Treasury to be 
used for such purposes as may be authorized from 
time to time by the Congress. It is proposed in- 
stead that (1) loan repayments received in dollars 
be deposited into miscellaneous receipts of the 
Treasury; (2) that loan repayments received in 
foreign currencies may be sold by the Treasury to 
U.S. Government agencies for payment of their 
obligations abroad and the dollars received from 
such agencies in reimbursement be deposited into 
miscellaneous receipts; and (3) that those for- 
eign currency repayments which are in excess of 
the amounts needed by the Treasury from time 
to time for sale to U.S. Government agencies for 
the payment of their obligations abroad shall be 
credited to the Development Loan Fund. Eepay- 
ments under these loans begin in fiscal year 1960 
with a total of approximately $20 million. These 
repayments will increase in succeeding years, and 
it is important that we now provide for their 
orderly use. 

Fourth, section 627(b), which relates to the em- 
ployment of personnel, is amended to permit an 
increase of 15 in the number of personnel who 
may be employed in the United States on the 
mutual security program, without regard to the 
provisions of the Classification Act of 1949, at 
rates of compensation higher than those provided 
for grade 15 of the general schedule of the Classi- 
fication Act of 1949 but not in excess of the 
highest rate provided for grades in such general 
schedule. This amendment is specifically de- 
signed to give more opportunity to the Under Sec- 
retary of State for Economic Affairs to strengthen 

the coordination, acbninistration, and execution 
of the entire mutual security program. 

The first proposal for language which does not 
amend the basic Mutual Security Act of 1954 is 
to express the recognition by the Congress of the 
harmful and deterring effects of diseases and other 
health deficiencies in underdeveloped areas and 
of the need for international efforts to combat 
them. It would provide that the Congress af- 
firm that it is the policy of the United States to 
accelerate its efforts to encourage and support 
international cooperation in programs to conquer 
diseases and other health deficiencies. This pro- 
vision is designed to reflect the growing concern 
of the United States in health problems of the 
underdeveloped areas and to express a firm inten- 
tion to quicken our efforts to support international 
health j^rograms. These efforts will of course 
continue to be carefully coordinated with other 
elements of our overall program furthering the 
basic objectives sought by the United States. 

The second provision which would not amend 
the basic legislation authorizes appropriations 
from time to time to the Department of State for 
payment of the U.S. share of expenses of the 
Colombo Plan Council for Technical Cooperation, 
which the United States joined early this year. 

III. Aid Proposal for Fiscal Year 1960 

The legislation also proposes, of course, new 
authorizations for appropriations. I believe the 
committee will be interested in a brief review of 
these figures, which I will amplify in some detail 
in executive session. We are using the same cate- 
gories of aid and the same definitions for them 
as we used last year. 

1. Military Assistance 

Last year we requested an appropriation of $1.8 
billion. Congress appropriated $1,515 billion. 
Expenditures during fiscal year 1959 are esti- 
mated at $2.4 billion. Our ability to deliver this 
greater volume of assistance arose, of course, from 
the existence of a pipeline of orders placed from 
prior year appropriations. That pipeline, how- 
ever, which has steadily decreased from a high of 
$8.5 billion in 1953, will be reduced to approxi- 
mately $2.6 billion by the end of the fiscal year. 
This means that there wUl necessarily be a much 
closer relation hereafter between the annual 
amounts appropriated for military assistance and 


Department of State Bulletin 

the amiual value of deliveries and expenditures. 
This bill proposes an appropriation of $1.6 billion, 
a figure which will require a substantial reduction 
in future deliveries. Expenditures for next year 
are estimated at $1.85 billion, a reduction of about 
25 percent from the fiscal year 1959 total. Our 
request was approved by the President as being 
an irreducible minimum. It was specifically 
pointed out in the President's budget message^ 
that these proposals should be considered in the 
light of the findings of the Draper Committee.^ 
I will refer to these findings again. 

2. DefeTise Support 

Last year we requested an appropriation of 
$835 million for essential support requirements of 
12 nations* carrying heavy military burdens. 
Congress appropriated $750 million. Despite 
every effort at economy, programs presently ap- 
proved total $787.5 million and there is every in- 
dication that there will have to be some additions 
to this total before the close of the fiscal year. 
This has required a considerable use of contin- 
gency funds. For fiscal year 1960 we are request- 
ing again $835 million for the same 12 countries. 

3. Special Assistance 

The request made in fiscal year 1959 was for 
an appropriation of $212 million. Congress ap- 
propriated $200 million. We presently anticipate 
that over $269 million will be obligated for this 
category of aid during this fiscal year, again in- 
volving the use of substantial contingency fimds. 

The marked upward adjustment that had to be 
made in this category of aid reflects the necessity 
of rapid and flexible responses to political and 
economic developments which cannot be clearly 
foreseen and the great value of a contingency 
fund which enables such adjustments to be made 
without undue delays. 

For fiscal year 1960 we are proposing special 
assistance in the amount of $272 million. As com- 
pared to last year's request this reflects an increase 
of $33.5 million in country programs. In addi- 
tion, an increase of $10 million is required for the 
peak year of the malaria eradication program if 

' For excerpts, see iltid., Feb. 9, 1959, p. 198. 

"For background, see ibid., Dec. 15, 1958, p. 954, and 
Feb. 9, 1959, p. 197. 

* Cambodia, Republic of China, Greece, Iran, Republic 
of Korea, Laos, Pakistan, Philippines, Spain, Thailand, 
Turkey, and Viet-Nam. 

the program is to be successful. We are propos- 
ing to spend $2 million more for aid to American- 
sponsored schools than that being used this year 
for the initiation of that program. We are also 
proposing some new programs imder special as- 
sistance — $5 million for initiating preliminary 
work on a worldwide program for community 
water development; $1 million for further medi- 
cal research through the World Health Organi- 
zation ; $5 million for a trial program to provide 
greater incentives for foreign and local private 
investment ; and $3.5 million as a contribution to 
thecostof UNEF. 

4- Technical Cooperation 

Congress appropriated $172 million for tech- 
nical cooperation last year. This included $8 mil- 
lion suggested by this committee wliich has en- 
abled us to set in motion improvements in our 
training procedures. For fiscal year 1960 an in- 
crease to $211 million is proposed. This increase 
reflects expansion of teclmical assistance in all 
underdeveloped areas. We propose an increase of 
43 percent in the emerging African area; an in- 
crease of about 20 percent in the Near East and 
South Asia; an increase of about 13 pei-cent in 
the Far East and of 25 percent in Latin America. 
Finally, an increase of $10 million in our contri- 
bution to the United Nations technical assistance 
program and the Special Fund associated with it 
is also projected to match anticipated increasing 
contributions from other countries. 

5. Other Programs 

There are very few material changes in the 
miscellaneous programs covered under this cate- 
gory. Congress appropriated $106 million in 
fiscal year 1959, the full amount requested, and 
is being asked to provide $112 million for fiscal 
year 1960. A substantial part of this slight in- 
crease is required to cover pay increases author- 
ized in other legislation. 

6. Contingency Fund 

Congress was asked to provide $200 million for 
fiscal year 1959 and appropriated $155 million. 
We have so far used $106 million of these funds to 
meet the needs referred to earlier. While we have 
clear and present need for all of and more than the 
balance to meet specific requirements, we have been 
forced to defer these allocations until the end of 
the fiscal year in order to preserve a minimum 

AprW 6, 7959 


capability to meet unforeseen crises. Understand- 
ably, this has seriously hampered orderly adminis- 
tration. For fiscal year 1960 we are asking again 
that $200 million be provided. In my view this 
is a minimum figure, all of which is vitally needed 
to provide the U.S. with the capability to respond 
effectively to situations as they develop. 

The sharply diminished military pipeline results 
in a considerable loss of flexibility. It was for- 
merly feasible to use the President's authority to 
transfer funds from the military assistance account 
to meet higher priority emergency requirements, 
because the large pipeline enabled adjustments in 
military programs to be made without too great 
difficulty. In fiscal year 1960 such transfers would 
involve the disruption of current military pro- 
grams. As a result the President's transfer au- 
thority has become much less meaningful. The 
contingency fund will hereafter provide our only 
really useful margin of flexibility. 

7. Development Loan Fund 

We asked for an appropriation last year of $625 
million and $400 million was provided. These 
funds and those available under pi-evious appro- 
pi'iations have been for all practical purposes ex- 
hausted, and a request for a $225 million supple- 
mental appropriation is now under congressional 
consideration so as to allow the Development Loan 
Fund to continue operating on a reduced scale until 
fiscal year 1960 funds become available. A de- 
tailed description of the uses we have made of the 
$700 million so far appropriated is set forth in tlie 
DLF presentation book. We are asking for $700 
million in fiscal year 1960. This does not fully 
meet the need for assistance in development as 
reflected in the $1.5 billion of applications still on 
hand. It will, however, enable the DLF to pro- 
ceed at the same rate of lending which it has 
attained during its first year of operations and to 
meet on a minimum basis the most pressing needs 
for economic development. 

IV. The Administration of the Program 

I am well aware of the general concern wliich 
has been expressed regarding the effectiveness of 
the administration of this program. I have taken 
particular note of the recent interim report of this 
group's Subcommittee for Review of the Mutual 
Security Program. This subcommittee has al- 

ready had extensive testimony from the Depart- 
ment of Def ensee. Specific responses to the points 
made in the report regarding economic assistance 
will be forthcoming from Mr. [Leonard J.] Sac- 
cio [Deputy Director of ICA] on behalf of ICA. 
However, I have some general observations to 

No one can deny, nor is there any desire to deny, 
that in a program of these dimensions and com- 
plexities mistakes have been made. I am certain, 
however, that such mistakes are the exception 
rather than the rule and that their incidence is 
decreasing. It is impossible to achieve perfection. 
Perfection is no more possible in this program 
than in any other activity conducted by human 
beings. We must also realize that it is normal for 
our errors to be publicized and for our satisfactory 
performances to be taken for granted. 

I should also like to point out that, in a program 
dealing with rapidly evolving political, military, 
and economic situations, it is frequently necessary 
to make rapid decisions. The validity of such 
decisions must be evaluated against the circum- 
stances under which they take place and in the 
light of the objectives being pursued. Wliat is 
feasible in the way of procedures in a placid, stable 
situation in a highly developed country is not 
always feasible in the opposite kind of situation. 
I do not say that our performance is without error, 
but I do believe that much that has been described 
as error deserves evaluation of the sort suggested. 

Of course, the fact that errors do occur and that 
this is natural is no justification for not making 
every effort to prevent them. Such efforts are a 
constant preoccupation of those charged with ad- 
ministrative responsibilities for these programs. 
I can assure you that every one of us is sincerely 
endeavoring to effect improvements in planning, 
programing, and execution and will welcome all 
suggestions as to ways and means of achieving 
further improvement. 

I spoke last year of the efforts being made to 
effect a closer coordination of the program plans 
and operations into the framework of our foreign 
policy. This has been substantially accomplished 
through the transfer of coordinating authority 
from the Director of ICA to the Under Secretary 
of State for Economic Affairs. During the year 
ICA has been more closely integrated with other 
parts of the Department while retaining its sepa- 


Department of State Bulletin 

rate organization and administration. The au- 
thorities vested in the Secretary of State under the 
Mutual Security Act which were formerly dele- 
gated by him to the Director of ICA have recently 
been delegated to the Under Secretary of State 
for Economic Affairs, who is empowered to redele- 
gate such of these authorities as he deems appro- 
priate to the Director of ICA. 

I am also convinced after a year of operations 
under the new arraiigements that my own staff 
must be substantially strengthened if maximum 
effectiveness in coordination is to be achieved. 
Mr. John O. Bell, who has succeeded Mr. Robert 
G. Barnes as my Special Assistant for Mutual Se- 
curity Coordination, is charged with effecting the 
necessary improvements. The increase in the au- 
thorization for excepted positions wliich I men- 
tioned earlier is an essential element in this effort. 

I do believe that over the past year we have suc- 
ceeded in improving our processes materially. 
Tlie improved programing procedures are de- 
scribed in the World Wide 8u7nmary volume. 
They provide solid assurance that program con- 
cepts are being subjected to critical analysis and 
justification before being adopted. Nevertheless, 
we still need to do more in this area, and I hope 
we will be successful in doing so over the next 
several months. However, I can assure you that 
each of these programs, military and nonmilitary, 
is now subject to my programing guidance. Each 
is subject to my review and approval. As a result 
there is a conscientious effort to assure consistency 
and coordination of the various elements of the 
program so as to promote our national security 

On the operational side, as other witnesses will 
point out, tlie pipelines are being rapidly reduced 
and the process of execution is being accelerated. 
Obligations of funds in ICA, for example, are 
running well ahead of last year. As of February 
28, cumulative obligations of $725 million had 
been made, amounting to 58 percent of the year's 
programs, which compares with $590 million or 
48 percent as of the same date a year ago. ICA 
programs were approved in large measiu-e sub- 
stantially earlier in the year than heretofore. In 
conjunction with the Department of Defense we 
are currently engaged in a major effort to effect 
improvements in tine military assistance program 
process. I hope that there will soon be substantial 
progress to report. 

Wliile effectiveness of operations can and should 
be measured in terms of efficiency of planning and 
execution, the critical question is of course 
whether or not the programs are attaining or 
contributing effectively to the attainment of the 
foreign policy objectives toward which they are 
directed. On this score I believe we have no 
apologies to make. 

V. Some Related Matters 

I would like now to touch upon a few matters 
whicli I am sure are of interest to the committee 
but which may not be dealt with quite so directly 
in the testimony which will follow. 

A. The Draper Group 

First, as the committee is aware, the President 
is considering the preliminary fuidings of the 
Draper group and will make such further recom- 
mendations based on those findings as he deems 
appropriate. Tlie group's interim report, which 
is being submitted to the President today [March 
17], indicates quite clearly that in its judgment 
the program which is being proposed to you is 
not excessive either in its military or economic 
components but, if anytliing, is a smaller program 
than is desirable from the point of view of our 
national interests. 

B. Separation of Military Assistance 

It will be recalled that this committee suggested 
last year that the executive branch should con- 
sider further the question of a separation of mili- 
tary and economic assistance programs. In view 
of the decision reached last year by the Congress 
to retain these various forms of assistance within 
the mutual security bill, and the studies now under 
way in the Draper Committee, we are not pro- 
posing any change at this time but will reexamine 
this question in the light of such recommendations 
as may be contained in the final report of the 
Draper group. 

C. The Private Sector 

An amendment last year to the Mutual Security 
Act called for a study by the executive branch of 
the ways and means in which the role of the pri- 
vate sector of the national economy could be more 
effectively utilized and protected in carrying out 
the purposes of the act. In response to this re- 
quest the Department of State organized a study 

April 6, J 959 


group headed by Mr. Ralph Straus.^ Tliis group 
is in the final stages of editing its report, which 
will be made available to the committee in the 
near future. I have had an opportunity to review 
preliminary drafts and have noted that, with the 
exception of certain suggested revisions in tax 
legislation, the great majority of its recommenda- 
tions call for procedural and policy changes and 
do not require new legislation. 

We are, as I am sure the committee is aware, 
clearly interested in obtaining the greatest pos- 
sible participation by private capital in the de- 
velopment of emerging areas of the world. We 
will continue to exert every effort in this direction. 
However, I would be less than candid if I did not 
point out that basic conditions in many less de- 
veloped countries, such as the lack of political 
stability, of adequate government services and 
properly trained personnel, of basic facilities of 
power and transportation, of low productivity and 
of limited markets, as well as chronic balance-of- 
payments problems, are basic impediments to pri- 
vate investment. The mutual security program is 
one means of moving toward the reduction or 
elimination of these impediments. Until con- 
ditions attractive to private investment are cre- 
ated, we cannot expect to depend on it as an 
answer to the problem. 

D. Ejfect on U.S. Economy 

We are still studying, as the Congress requested, 
the effect of the mutual security program on the 
economy of the United States. A report will be 
made to this committee during its consideration 
of this bill. In my own view it is clear that this 
program has a highly beneficial impact. Fore- 
most is the fact that, unless we are able to achieve 
the basic national security objectives which the 
mutual security program is designed to help at- 
tain, it will be impossible to maintain our own 
economic health and military strength. It con- 
tributes to that stability and growth which is 
essential to assure ready access to the essential 
raw materials needed by our industries. It in- 
creases the ability of other countries to buy our 
goods. Finally, the program results in immedi- 
ate employment and production in the United 
States. Figures show that, under this program in 

' For an announcement of Mr. Straus' appointment and 
text of the amendment, see Bulletin of Nov. 3, 1958, p. 

fiscal year 1958, 75.4 percent of all funds were 
directly expended in this country. Dollars spent 
abroad also benefit the United States economy by 
making it possible for the countries receiving 
these funds to purchase more goods from us. A 
responsible estimate for fiscal year 1957 was that 
530,000 people in the United States were em- 
ployed on an average full-time basis as a result 
of the mutual security program. 

E. Section 402 

1 would like to briefly mention some problems 
we are laaving with section 402 of the act, which 
provides that not less than $175 million must be 
used to finance the export and sale for foreign cur- 
rencies of surplus agricultural commodities or 
products. While we have been able to comply 
with this requirement in the past and will en- 
deavor to do so in the future if it is continued in 
the legislation, I must point out that it is be- 
coming increasingly difficult to do so as the pro- 
duction of agricultural products increases in coun- 
tries which we are assisting and as the currencies 
of Western European countries become freely con- 
vertible, thereby diminishing the incentive for 
such countries to purchase agricultural commodi- 
ties under section 402 and then pei-mit the use of 
the sales proceeds for purchase of goods required 
in the underdeveloped areas. 

VI. The Importance of the Program 

The purposes of this program are simple, 
straightforward, and clear. We can no more live 
unscathed in a community of nations if it is dis- 
eased, poverty-stricken, and unstable than we 
could live unscathed in our local communities 
under such conditions. We are, must be, and want 
to be concerned with the welfare of our fellow 
human beings. Our security is not just related 
to the situation in other nations; it is dependent 
on the assistance of allies. Our needs for allied 
military forces, bases, strategic resources, and pro- 
ductive capacity are real and inescapable. 

The mutual security progi-am does not in itself 
solve all of our problems, nor is it intended to. 
But it is an indispensable element for their 

Gentlemen, our cause today is none other than 
the preservation of human liberty on this planet. 
Three times in this century Americans have 
poured out their blood that freedom might sur- 


Department of State Bulletin 

vive. Today we face the greatest and ultimate 
challenge. It is an all-pei'vading challenge — mili- 
tary, economic, and psychological. It is a long- 
term challenge that makes heavy demands on our 
staying powers. But with the growing interde- 
pendence of the peoples of the world it presents us 
also with a glowing promise for the future. For 
if we successfully pass this test and turn back the 
worldwide assault of international communism on 
men's minds, we can foresee the dawn of a new 
era when all mankind will work together in liberty 
and freedom to realize the untold benefits which 
the miracles of science are bringing within our 
reach. Failure in this contest is unthinkable. 
Our weapon in the fight is our faith in the ulti- 
mate victory of freedom. But faith alone is not 
enough. Faith must be translated into action if 
it is to have any meaning. That action is the 
mutual security program. Over the coming weeks 
we will be presenting to you a balanced program 
of mutual security which has been developed over 
months of painstaking effort. It is your right and 
duty to examine this progi'am closely to insure 
that it is at the same time adequate and not ex- 
travagant. We welcome a searching examination. 
But we hope that during your detailed study you 
will not lose sight of the basic fact that for the 
peoples of the free world the mutual security pro- 
gram is above all the measure of the determination 
of the American people to stand up and be counted 
in the battle for freedom and progress. As such, 
it is vital to our national security, to our very 
existence as a free people. 


I have been given a number of opportunities to 
appear before committees of Congress to express 
my views pertaining to the national defense. 
None of them have I welcomed more than this — 
because of my strong feelings regarding the im- 
portance of the subject this committee now has 
under consideration. 

The Acting Secretary of State has already 
testified with respect to the important contribu- 
tion the mutual security program makes to the 
furtherance of United States foreign policy ob- 
jectives. My own remarks will, therefore, be di- 
rected to the military assistance program, and 
specifically to its essentiality as an integral part 

of our own national defense. As you know, the 
executive branch is requesting new obligational 
authority in the amount of $1.6 billion for this 
program in fiscal year 1960. 

There can be no question about the objective of 
our defense program. It is to maintain a military 
position of such strength that, first, no nation will 
attack us because he will know that we can inflict 
unacceptable damage on him in return and, second, 
local situations of tension can be prevented from 
breaking into war or can be contained if military 
conflict does begin. 

This means that we must have military strength 
not only on this continent but in the whole 
periphery of the free world where aggression is 
apt to occur. It has been many years since we 
could regard our frontier as the coastline of this 
country. We have long recognized that the ad- 
vance of international communism anywhere 
weakens the security not only of the free world 
but of the United States itself. Aggression must 
be stopped. Our defense is tied inevitably to the 
defense of the f arflung frontiers of the free world. 
We can expect one probing action after another 
in which the Soviets or the Communist Chinese 
test our willingness and ability to resist. If the 
free world cannot stand up firmly to these probes 
when they are initiated, we may well be faced with 
a major conflict as the Communists, pressing 
ahead with their win-by-threat policy, make it 
imperative that at some point we meet the issue 

Concept of Military Assistance 

It is most unlikely that the United States alone 
could hold all these varied fronts dispersed widely 
around the world. The concept of a strength 
created and maintained by joining the capabilities 
of ourselves and our allies is thus basic to our 
whole security program. If our allies do not re- 
main strong, our whole security concept will need 
radical revision and the burden placed on our own 
resources will be immeasurably greater. 

We are most fortunate in the fact that, in most 
of the areas where international communism might 
seek expansion, there are countries which are 
friendly to us and look to us for leadership. 
These nations have the will to resist, and they 
have the manpower. In many cases they do not 
have the resources. Without assistance they can- 
not support military establishments adequate to 

April 6, 1959 


defend themselves. If we do not buttress them 
with tlie resources they need, and help them with 
the training necessary to prepare them for mod- 
ern warfare, they will succumb to communism 
either through military action or through the kind 
of civil disorder and deterioration on which com- 
mmiism thrives. 

We cannot let this happen. Each Commmiist 
success is a new discouragement to those who would 
cast their lot our way, and a new source of vitality 
and momentum for the aggressors. 

In my judgment it would be shortsighted in- 
deed if this nation spent over $40 billion on its 
own military establishment and then declined to 
spend the much smaller sums needed to maintain 
and modernize the forces of our allies, which are 
essential to our whole defensive concept and with- 
out which our own military expenditures would 
have to be enormously increased. 

I recently was privileged, as I am sure several 
of the members of this committee have been, to 
see at first hand the operation of our militai-y 
assistance program in a number of countries in 
the Far East and Southeast Asia. I wish every 
Member of Congress could visit countries like 
soutli Korea and see wliat can be done when the 
United States supplies its know-how and re- 
sources to a nation determined to put them to 
good use. This is an active front; guns are facing 
each other across a hot boimdary line; troops in 
forward dugout positions are on continuous 24- 
hour alert. If the south Korean forces which join 
our own and other United Nations units in hold- 
ing this front were not well trained and well sup- 
plied, we would either have to throw in far larger 
forces of our own or move out with the knowledge 
that south Korea would fall as another victim to 
Communist aggression. 

A dramatic illustration of our program at work 
was given at Quemoy where Nationalist Chinese 
engaged Communist Chinese aircraft and shot 
them down at a ratio of 8 to 1. They used Ameri- 
can equipment and American training — both were 
essential. If the Nationalist Chinese had not been 
ready to defend themselves, either Quemoy would 
have been lost or we would have found ourselves 
engaged in war with the aggressing Conamunists. 

Five years ago south Viet-Nam was demoralized 
from the effects of a bitter war and hardly had 
the strength to provide even a minimum amount of 
its own protection. Today, with their own cour- 

age and energy, together with our assistance, the 
situation has improved tremendously. They are 
now able to maintain civil order at a time of pos- 
sible future crisis; and while it could not, of 
course, stand up against an attack backed by the 
Sino-Soviet forces, it could defend itself against 
an invading neighbor and hold the line long 
enough for the Western World to come to its aid. 

A prime example of the value of our mutual 
assistance program, of course, is the role it has 
played in the development of NATO defenses. 
It is no exaggeration to say that the fact that 
there has been no aggression in Europe since 
NATO was formed in 1949 is due primarily to 
the strengthened military posture and sense of col- 
lective security engendered by the military assist- 
ance program. The stanch stand of our NATO 
allies with us on the Berlin situation over the 
past 3 months exemplifies NATO's cohesion and 

There are many other examples. They add up 
to a most impressive supplement to the total forces 
defending the free world. 

Some measure of the magnitude is gained from 
noting that the ground forces of our allies com- 
prise today over 5 million men; naval forces — 
2,500 combat vessels ; and air forces — about 30,000 
aircraft, of which 14,000 are jet. One can see 
their importance and the problem we would face 
if we had to meet these military requirements with 
our own forces. 

Network of Overseas Bases 

I have emphasized the contributions which our 
allies make to the collective security^ — and there- 
fore to our own security — in the form of military 
personnel and equipment. I could just as well 
have emphasized the fact that without stanch and 
stable friends overseas we would not have the net- 
work of overseas bases which is so vital to our own 
military operations. Our Strategic Air Com- 
mand is considerably strengthened by its ability 
to operate from advanced overseas bases. The op- 
erations of our Navy are greatly helped by being 
able to use overseas facilities. Our Army can re- 
spond with far more dispatch to such situations 
as that in Lebanon by having advanced staging 
areas from which to operate. 

Critics of the program point to instances of in- 
efficiencies or examples of money being spent un- 
wisely. I am afraid it is true that in any opera- 


Department of State Bulletin 

tion of this size and geographical scope, with the 
pressures of urgent political necessities with 
which one must deal in various parts of the world, 
such examples are very apt to exist. We are mak- 
ing a determined effort to reduce or eliminate 
them, and the conscientious study of the problem 
made by your Subcommittee for Review of the 
Mutual Security Progi'am is rendering a construc- 
tive service by helping us dig out examples of de- 
ficiencies. However, I think it would be a critical 
mistake to curtail the progi-am because of isolated 
instances of waste and inefficiency, representing a 
small percentage of the total. Wlaen a city finds 
shortcomings in a police force, one does not abol- 
ish the force ; one works to improve it and correct 
the deficiencies imcovered. 

One of the things that has puzzled me since 
coming to Washington has been the difficulty we 
encounter in developing a broad understanding 
of the importance of the mutual security and the 
military assistance part of the program. Wlien 
General Twining was asked by a Member of the 
Congress last spring whether he would recom- 
mend restoring all the dollars that had been cut 
from the mutual security program before consid- 
eration of any possible increase in the regular de- 
fense budget, he replied forcefully that he 
thought these dollars could better be spent in the 
defense of this Nation by putting them into mu- 
tual security. The individual chiefs of the mili- 
tary services later authorized the chairman to say 
that they unequivocally agreed with him. This is 
impressive testimony. 

For each dollar we have spent during 1950-58, 
the nations receiving military assistance from us 
have spent more than $5. In fact, the 1958 effort 
was at a rate of $7 for every dollar of military 
assistance received. These countries are spending 
this for their own defense, of course ; but this de- 
fense effort is also supporting our objectives as 
the leading nation of the free world. It is hard to 
see how we can possibly get better value for our 
dollar than by helping these nations stand on their 
own feet and carry their part of the load. 

The record of achievement thus far is one that 
more than justifies rededication to the principles 
of military assistance and collective security. All 
over the world, at points of greatest potential 
danger, the fighting forces of our partner nations 
stand ready to take the bnmt of initial attack on 
any scale and to hold the line until reinforcements 

can be rushed in to restrain and drive back the 
aggressor. Tliis international cooperation has, in 
less than a decade, created a common defense pos- 
ture in the free world which has successfully 
checkmated Sino-Soviet aggression and main- 
tained the difficult peace which still prevails. 
Speaking as one primarily concerned with making 
certain that our defense is strong enough to meet 
whatever tests it may face, I strongly urge sup- 
port of a program which contributes so much to 
our own national security at so moderate a cost, 
and which joins the forces of the free world in an 
effective military alliance committed to the pres- 
ervation of the peace. 


My appearance before you today to talk about 
the military assistance program is an opportunity 
which I welcome. 

Far too many of our own American people are 
not aware of the positive contribution made by 
the military assistance program in promoting the 
foreign policy, national security, and the general 
welfare of the United States. 

Let me say here and now that I do not regard 
this program as a vast boondoggle. This label is 
a direct slap to our allies and to our own country 
and a source of comfort to oiu" adversaries. The 
military assistance program plays a considerable 
role in insuring the survival of the United States 
and the free world. 

We must, as Americans, also be aware that in 
free societies the armed forces are not maintained 
at the expense of the national economy, but rather 
provide the necessary security which makes na- 
tional development and national survival possible. 
Without security there can be no national develop- 
ment — only capitulation. 

Today the national survival and continued na- 
tional development of all countries of the free 
world depend more than ever upon the collective 
security arrangements in existence between the 

The threat to the free world is not decreasing. 
Today those who would enslave free men every- 
where are embarked upon broad progi-ams in the 
military, economic, political, and psychological 
fields, all designed to destroy the free world. 
These are the cold and brutal facts of life in the 
world today. I have painted this threat in great 

April 6, 1959 


detail to various committees of the Congress. I 
have repeatedly stated that we can counter this 
threat and insure the survival of the free world 
if we do not weaken in our determination to pre- 
serve the free- world alliance. 

Our free-world alliance is essential to our own 
national security. The military capabilities of the 
alliance are developed in a large part through our 
military assistance program. If this program is 
weakened or reduced to insignificance, our adver- 
saries will have achieved a major victory without 
firing a shot. 

Benefits of Military Assistance Program 

We can look about us in the countries of the free 
world today and see all too plainly the visible 
results of our military assistance program. Tliis 
program has made a major contribution to world 
peace. In less than 10 years, it has made possible 
the buildup of allied military strength and the 
development of a corresponding will to resist 
aggression. So far, the program has served its 
purpose as a deterrent to general war. 

I would like to give this committee a brief nm- 
down of the benefits which I believe come to the 
United States as a result of the military assistance 

First, the free world has a substantial military 
capability which could not have been achieved 
without the military assistance program. If there 
is some alternative progi-am that could be substi- 
tuted for the military assistance program, I would 
like to know about it. So would the Joint Chiefs 
of Staff. 

The military assistance program fiumishes vital 
support upon which the effectiveness of our mili- 
tary alliances depend. I have already pointed 
out that I consider these alliances to be essential 
to our own national security. 

Our military assistance program constitutes an 
important part of the consideration given in return 
for the establishment and cooperative use of our 
overseas system of bases and facilities. The im- 
portance of these bases and facilities to us is high- 
lighted by the repeated Soviet attempts to deprive 
us of them. There can be no better reason for 
their continued, existence. 

The military assistance program promotes a 

climate of mutual interest, confidence, and reason- 
able safety essential to the economic growth and 
progress of the nations of the free world. As 
Americans, we realize that it is in our best interests 
to participate heavily in the free-world effort to 
create a climate of security essential to peace and 

Without our military assistance program, the 
United States would require more men imder arms 
both at home and overseas. If we were to main- 
tain forces sufficient to match the Communist bloc 
in military strength or resources at points of pos- 
sible aggression around the world, the cost to the 
United States would be far in excess of the $22 
billion furnished under the military assistance 
program and the $141 billion spent by our allies 
during the years 1950 to 1958. 

We simply do not have the manpower or mate- 
rials to take on the defense of the entire free 
world alone. At the same time, I firmly believe 
that the defense of the free world is inseparably 
linked to our own defense. 

Deterring General War and Limiting Local Aggres- 

Our military assistance program provides the 
United States and the free world with the military 
means to cope with cold-war situations and has 
served in some measure to date to deter limited and 
general war. The past year has presented a num- 
ber of sharp challenges. In each, we must attribute 
a portion of our success in deterring general war 
and limiting local aggression to our continued 
efforts under the military assistance program. 

If I can leave only one last parting thought with 
this committee, I would ask that you keep in mind 
my views that our military assistance program is 
a vital and integral part of our overall defense 
posture. The day is past when we can risk going 
it alone. If a substantial part of the fi-ee world 
falls or slips behind the Iron Curtain, our chances 
of being able to defend ourselves must dim in pro- 
portion. The gauntlet is on the table along with 
the blue chips. The stakes were never higher than 
they are today. Any limitations or reductions 
in the program would virtually eliminate all 
modernization and force improvement needed to 
accomplish the military assistance program force 


Deparfmenf of Slate Bulletin 


Calendar of International Conferences and Meetings^ 

Adjourned During March 1959 

ICAO: Special Meeting on Short- Range Navigational Aids . . . Montreal Feb. 10- Mar. 2 

U.N. General Assembly: 13th Session (resumed) New York Feb. 20-Mar. 13 

FAO/ECLA Seminar on Agricultural and Food Price Policies . . Santiago Feb. 23-Mar. 3 

ILO Governing Body: 141st Session (and committees) Geneva Feb. 23-Mar. 13 

ILO Technical Meeting on Problems of Productivity Improvement Bangalore, India Feb. 25-Mar. 10 

in Certain Countries. 

GATT: Meeting of Committee II on Expansion of International Geneva Mar. 2-10 


UNICEF Executive Board and Program Committee Geneva Mar. 2-13 

Inter-American Institute of Agricultural Sciences: 4th Meeting of Turrialba, Costa Rica .... Mar. 9-12 

Technical Advisory Council. 

European Civil Aviation Conference: 3d Session Strasbourg Mar. 9-21 

Pan American Highway Congresses: Technical Committee of Ex- Lima Mar. 9-13 

perts on Development of Governmental Highway Agencies. 

UPU Consultative Committee on Postal Studies: 2d Meeting of The Hague Mar. 9-19 

Administrative Council. 

U.N. International Commission on Commodity Trade: 7th Session. New York Mar. 9-20 

U.N. Commission on Status of Women: 13th Session New York Mar. 9-27 

IAEA Board of Governors: Special Meeting Vienna Mar. 10-13 

GATT: Meeting of Committee III on Expansion of International Geneva Mar. 11-13 


U.N. ECE i4d ffoc Working Party on Gas Problems: 5th Session . Geneva Mar. 11-13 

ILO Asian Advisory Committee: 9th Session Geneva Mar. 16-17 

GATT Working Party on Association of Yugoslavia Geneva Mar. 16-20 

U.N. ECE Inland Transport Committee: Working Party on Con- Geneva Mar. 16-20 

struction of Vehicles. 

ICEM: Ad fl'oc Meeting of Six Powers San Francisco Mar. 17-23 

Central American Ministers of Agriculture San Salvador Mar. 18-20 

U.N. ECE Electric Power Committee Geneva Mar. 18-20 

U.N. ECE Coal Committee (and working parties) Geneva Mar. 23-25 

In Session as of March 31, 1959 

Political Discussions on Suspension of Nuclear Tests Geneva Oct. 31, 1958- 

U.N. Trusteeship Council: 23d Session New York Jan. 30- 

U.N. Commission on Human Rights: 15th Session New York Mar. 16- 

U.N. Scientific Committee on Effects of Atomic Radiation: 6th New York Mar. 23- 


U.N. ECAFE/TAA Regional Seminar on Trade Promotion . . . Tokyo Mar. 30- 

Caribbean Commission: Ad Hoc Committee on Revision of Agree- Trinidad Mar. 31- 

ment for Establishment of the Commission. 

Scheduled April 1 Through June 30, 1959 

World Meteorological Organization: 3d Congress Geneva Apr. 1- 

ITU International Radio Consultative Committee (CCIR) : 9th Los Angeles Apr. 1- 

Plenary Assembly. 

ICEM Executive Committee: 12th Session Geneva Apr. 2- 

' Prepared in the Office of International Conferences, Mar. 19, 1959. Following is a list of abbreviations : CCIR, 
Comity consultatif Internationale des radio communications ; COITT, Comit6 consultatif internationale t616graphique 
et t616phonique ; ECAPB, Economic Commission for Asia and the Far East ; ECE, Economic Commission for Europe ; 
ECLA, Economic Commission for Latin America ; ECOSOC, Economic and Social Council ; FAD, Food and Agriculture 
Organization ; GATT, General Agreement on Tariffs and Trade ; IAEA, International Atomic Energy Agency ; 
lA-ECOSOC, Inter-American Economic and Social Council ; ICAO, International Civil Aviation Organization ; ICEM, 
Intergovernmental Committee for European Migration ; ILO, International Labor Organization ; ITU, International 
Telecommunication Union ; NATO, North Atlantic Treaty Organization ; OAS, Organization of American States ; 
PAHO, Pan American Health Organization ; SEATO, Southeast Asia Treaty Organization ; TAA, Technical Assistance 
Administration; U.N., United Nations; UNESCO, United Nations Educational, Scientific and Cultural Organization; 
UNICEF, United Nations Children's Fund ; UPU, Universal Postal Union ; WHO, Worid Health Organization ; WMO, 
World Meteorological Organization. 

April 6, 1959 499 

Calendar of International Conferences and Meetings — Continued 

Scheduled April 1 Through June 30, 1959 — Continued 

Ceremony Commemorating the 10th Anniversary of NATO . . . Washington Apr. 2- 

NATO Ministerial Council Washington Apr. 2- 

2d FAO World Fishing Boat Congress Rome Apr. 5- 

OAS Special Committee To Study New Measures for Economic Buenos Aires Apr. 6- 

Development ("Committee of 21"). 

GATT Panel on Antidumping and Countervailing Duties .... Geneva Apr. 6- 

GATT Panel on Subsidies and State Trading Geneva Apr. 6- 

lAEA Board of Governors: 11th Session Vienna Apr. 7- 

FAO European Commission for Control of Foot and Mouth Disease. Rome Apr. 7- 

ICEM Council: 10th Session Geneva Apr. 7- 

U.N. Economic and Social Council: 27th Session Mexico, D.F Apr. 7- 

SEATO Council: 5th Meeting Wellington Apr. 8- 

FAO Panel on Agricultural Price Support Measures Rome Apr. 9- 

FAO: Government Experts on Use of Designations, Definitions, Rome Apr. 13- 

and Standards for Milk and Milk Products. 

Caribbean Commission: Conference on the Financing of Agri- Trinidad Apr. 14- 


FAO Ad Hoe Committee on Campaign To Help Free the World Rome Apr. 15- 

From Hunger Year. 

ILO Meeting To Establish an Individual Control Book for Drivers Geneva Apr. 20- 

and Assistants in Road Transport. 

U.N. Committee on Information From Non-Self-Governing Ter- New York Apr. 20- 

ritories: 10th Session. 

U.N. Economic Commission for Europe: 14th Session Geneva Apr. 20- 

U.N. Commission on Narcotic Drugs: Committee on Illicit Traffic . Geneva Apr. 22- 

ILO Coal Mines Committee: 7th Session Geneva Apr. 27- 

U.N. Commission on Narcotic Drugs: 14th Session Geneva Apr. 27- 

U.N. Social Commission: 12th Session New York Apr. 27- 

ICAO Aeronautical Information Services Division/Aeronautical Montreal Apr. 28- 

Maps and Charts Division. 

PAHO Executive Committee: 37th Meeting Washington Apr. 28- 

WMO Executive Committee: 11th Session Geneva Apr. 29- 

4th South Pacific Conference Rabaul, New Britain Apr. 29- 

12th International Cannes Film Festival Cannes May 1- 

U.N. ECAFE Inland Transport and Communications Committee: Tokyo May 4- 

Working Party of Telecommunications Experts. 

U.N. Transport and Communications Commission: 9th Session . . New York May 6- 

GATT Intersessional Committee Geneva May 6- 

U.N. ECLA Committee on Trade Panami May 6- 

ITU International Telephone and Telegraph Consultative Com- Tokyo May 11- 

mittee (CCITT) : Plan Subcommittee. 

GATT Contracting Parties: 14th Session Geneva May 11- 

GATT Committee on Balance-of-Payments Restrictions Geneva May 11- 

GATT Consultations With European Economic Community on Geneva May 11- 


FAO Cocoa Study Group: Statistical Committee Rome May 12- 

FAO Technical Meeting on Fishery Cooperatives Naples May 12- 

12th World Health Assembly Geneva May 12- 
International Cotton Advisory Committee: 18th Plenary Meeting. Washington May 13- 

FAO Cocoa Study Group: Executive Committee Rome May 13- 

FAO International Poplar Commission: 10th Session Rome May 13- 

FAO International Poplar Congress: 7th Session Rome May 13- 

South Pacific Commission: 19th Session Rabaul, New Britain May 13- 

U.N. Economic Commission for Latin America: 8th Session . . . Panami May 13- 

4th Inter-American Indian Conference Guatemala City May 16- 

FAO Group on Grains: 4th Session Rome May 18- 

U.N. ECOSOC Latin American Seminar on Status of Women . . . Bogota May 18- 

UNESCO Administrative Commission Paris May 18- 

UNESCO External Relations Commission Paris May 18- 

ITU Administrative Council: 14th Session Geneva May 19- 

16th World Congress on Veterinary Medicine Madrid May 21- 

ILO Governing Body: 142d Session (and committees) Geneva May 25- 

U.N. Trusteeship Council: 24th Session New York May 25- 

UNESCO Executive Board: 54th Session Paris May 25- 

WHO Executive Board: 24th Session Geneva May 

FAO Committee on Commodity Problems: Session Rome June 1- 

International Commission for Northwest Atlantic Fisheries: 9th Montreal June 1- 

Annual Meeting. 

Inter- American Commission of Women: 13th General Assembly . Washington June 1- 

International Labor Conference: 43d Session Geneva June 3- 

Customs Cooperation Council: 14th Session Brussels June 8- 

FAO/UNICEF Joint Policy Committee: 2d Session Rome June 8- 

Informal Shipping Talks Washington June 8- 

FAO Council: 30th Session Rome June 15- 

500 Department of State Bulletin 

GATT Group of Experts on Restrictive Business Practices .... 

Executive Committee of the Program of the U.N. High Commis- 
sioner for Refugees: 2d Session. 

ICAO Assembly: 12th Session 

South Pacific Research Council: 10th Meeting 

International Whaling Commission: 11th Meeting 

9th International Berlin Film Festival 

15th International Dairy Congress 

FAO: 6th Session on Desert Locust Control 

GATT Committee on Balance-of-Payments Restrictions 

U.N. Economic and Social Council: 28th Session 

lA-ECOSOC Permanent Technical Committee on Ports: 2d 

Permanent International Commission of Navigation Congresses: 
Annual Meeting. 

U.N. Special Fund: 2d Session of Governing Council 

IAEA Board of Governors: 12th Session 

Geneva June 15- 

Geneva June 15- 

San Diego June 16- 

Noum^a, New Caledonia . . . June 17- 

London June 22- 

Berlin June 26- 

London June 29- 

Rome June 29- 

Geneva June 29- 

Geneva June 30- 

Montevideo June 

Brussels June 

New York June 

Vienna June or July 

Mr. Heinz To Be U.S. Representative 
to 14th Session of ECE 

The Senate on March 11 confirmed Henry J. 
Heinz II to be the representative of the United 
States to the 14th session of the Economic Com- 
mission for Europe of the Economic and Social 
Council of the United Nations, which will open at 
Geneva, Switzerland, on April 20. 

Current U.N. Documents; 
A Selected Bibliography ' 

Economic and Social Council 

Economic Commission for Latin America. Progress Re- 
port on Inter-Latin American Trade and the Regional 
Market, Covering the Period June 1957 to April 1958. 
E/CN.12/AC.40/3. February 28, 1958. 45 pp. mlmeo. 

Population Commission. Technical Assistance for Re- 
gional Demographic Training and Research Centres. 
Memorandum presented by the Secretary-General. 
E/CN.9/143. December 29, 1958. 13 pp. mimeo. 

Population Commission. Regional Work in the Field of 
Population. Report submitted by the Secretary- 
General. E/CN.9/154. December 29, 1958. 11 pp. 

Population Commission. Seminars and Technical Work- 
ing Groups on Evaluation and Utilization of Population 
Census Results. Memorandum submitted by the Secre- 
tary-General. E/CN.9/152. December 30, 1958. 6 pp. 

Population Commission. Progress of Work During 1957- 
1958 and Programme of Work for 1959-1961 in the Field 
of Population. Memorandum submitted by the Secre- 
tary-General. E/CN.9/155. December 30, 1958. 24 
pp. mimeo. 

Economic Commission for Africa. Programme of Work 
and Priorities — Summary of a Suggested Work Pro- 

' Printed materials may be secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 2960 Broadway, New York 27, N.T. Other 
materials (mimeographed or processed documents) may 
be consulted at certain designated libraries in the United 

gramme for 1959. Memorandum by the Executive Sec- 
retary. E/CN.14/4/Add. 2. December 30, 1958. 5 pp. 

Commission on the Status of Women. Equal Pay for 
Equal Work. Report by the International Labour 
Office and by the Secretary-General E/CN.6/341. De- 
cember 31, 1958. 104 pp. mimeo. 

Commission on the Status of Women. Occupational Out- 
look for Women : Access of Women to Training and 
Employment in the Principal Professional and Tech- 
nical Fields. Report by the Secretary-General. 
E/CN.6/343. January 5, 1959. 48 pp. mimeo. 

Economic Commission for Africa. Report of the First 
Session of the Economic Commission for Africa to the 
Economic and Social Council (29 December 1958-6 Jan- 
uary 1959). E/CN.14/L.34/Rev. 1. January 6, 1959. 
24 pp. mimeo. 

Commission on Human Rights. Right of Asylum. Com- 
ments of Governments. E/CN.4/781. January 8, 1959. 
12 pp. mlmeo. 

Commission on International Commodity Trade. Recent 
Commodity Developments. Memorandum No. 29. E/ 
CN.13/Ser.A/29. January 9, 1959. 12 pp. mimeo. 

Commission on Human Rights. Draft Declaration of the 
Rights of the Child. Comments of Governments. E/ 
CN.4/7S0. January 12, 1959. 22 pp. mimeo. 

Possibilities of International Co-operation in Studies of 
Rural-Urban Migration in Under-developed Countries. 
Report submitted by the Secretary-General. E/CN.9/- 
151. January 12, 1959. 16 pp. mimeo. 

Commission on the Status of Women. Review of Pro- 
grams of Work, Establishment of Priorities, Control 
and Limitation of Documentation. Note by the Secre- 
tary-General. E/CN.6/340. January 13, 1959. 3 pp. 

Commission on Human Rights. Review of Programmes 
and Priorities. Note by the Secretary-General. E/ 
CN.4/783. January 19, 1959. 3 pp. mimeo. 

Economic Development of Under-Developed Countries. 
Report of the Symposium on the Development of Petro- 
leum Resources of Asia and the Far East. E/3203. 
January 30, 1959. 64 pp. mimeo. 

Trusteeship Council 

United Nations Visiting Mission to Trust Territories in 
West Africa, 1958. Report on the Trust Territory of the 
Cameroons Under British Administration. T/1426 and 
Add. 1. January 20, 1959. 173 pp. mimeo. 

United Nations Visiting Mission to Trust Territories in 
West Africa, 1958. Report on the Trust Territory of 
the Cameroons Under French Administration. T/1427. 
January 23, 1959. 162 pp. mimeo. 

April 6, 1959 



Current Actions 



Protocol of amendment to convention on the Inter- 
American Institute of Agricultural Sciences of January 
15, 1944 (58 Stat. 1169). Opened for signature at 
Washington December 1, 1958.' 

Signatures: Chile, Colombia, Guatemala, March 18, 

Germany — Allied High Commission 

Protocol modifying agreement concerning storage of, 
access to, and release of information from the archives 
of the Allied High Commission and connected tripartite 
agencies of June 30, 1954 ( TIAS 3036 ) . Signed at Bonn 
March 5, 1959, by France, the United Kingdom, and 
the United States. Entered into force March 5, 1959. 

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 
Batifieation deposited: Panama, February 18, 1959. 

Trade and Commerce 

Proc^s-verbal extending the validity of the declaration ' 
extending the standstill provisions of article XVI :4 
of the General Agreement on TarifCs and Trade. Done 
at Geneva November 22, 1958. 

Signatures: Austria, Belgium, Ceylon, Denmark, Fin- 
land, Haiti, Indonesia, Luxembourg, Federation of 
Malaya, Federation of Rhodesia and Nyasaland, and 
Turkey, November 22, 1958; Italy and Norway, 
December 1, 1958; Netherlands, December 16, 1958; 
Federal Republic of Germany, January 13, 1959; 
United States (with a statement), March 16, 1959. 


Amendments to paragraph 6(1),' 6(2),' 8(a), and 8(c) 
of the schedule to the International Whaling Conven- 
tion of 1946 (TIAS 1849). Adopted at the 10th meet- 
ing of the International Whaling Commission, The 
Hague, June 23-27, 1958. 

Entered into force: Paragraphs 8(a) and 8(c), Jan- 
uary 29, 1959, except for Japan, Netherlands, Norway, 

Union of Soviet Socialist Republics, and United 



Agricultural commodities agreement under title I of the 
Agricultural Trade Development and Assistance Act of 
1954, as amended (68 Stat. 454; 7 U.S.O. 1701-1709), 
with memorandum of understanding. Signed at Rey- 
kjavik March 3, 1959. Entered into force March 3, 


Agreement supplementing and amending the agricultural 
commodities agreement of November 6, 1958 (TIAS 
4126). Effected by exchange of notes at Washington 
March 10, 1909. Entered into force March 10, 1959. 


' Not in force. 

' Entered into force Oct. 6, 1958. 

Change in Consular Districts in Yugoslavia 

Department notice dated February 27 

Effective March 23, 1959, the District of Dubrovnik is 
removed from the area of responsibility of the American 
Consulate General at Zagreb and added to the area of 
responsibility of the American Consulate at Sarajevo. 

The new areas of responsibility are as follows: 
Sarajevo — the People's Republics of Bosnia-Hercegovina 
and Montenegro and the District of Dubrovnik ; Zagreb — 
the People's Republics of Slovenia and Croatia (except 
the District of Dubrovnik) . 


Clarence A. Boonstra as Director, Office of East Coast 
Affairs, Bureau of Inter-American Affairs, effective 
March 16. 

William T. Briggs as Deputy Director, Office of East 
Coast Affairs, Bureau of Inter-American Affairs, effec- 
tive March 16. 

Ivan B. White as Deputy Assistant Secretary for Euro- 
pean Affairs, effective March 18. 

Carlos C. Hall as Director, Office of Research and 
Analysis for American Republics, effective March 23. 


Deparfment of State Bulletin 

April 6, 1959 


Vol. XL, No. 1032 

American Republics 

Boonstra designated Director, Office of East Coast 

Affairs, Bureau of Inter-American Affairs . . . 502 

Briggs designated Deputy Director, Office of East 

Coast Affairs, Bureau of Inter-Americau Affairs . 502 

Hall designated Director, Office of Research and 

Analysis for American Republics 502 

U.S. Suggestions for Promoting Economic Develop- 
ment of Americas 479 

Asia. U.S. China Policy (Robertson) 472 


Development Loan 484 

U.S. China Policy (Robertson) 472 

Congress, The. The Mutual Security Program — 
An Indispensable Support to U.S. Foreign Policy 
(Herter, Dillon, McElroy, Twining) 485 

Cuba. Letters of Credence (Dihigo y LOpez 

Trigo) 478 

Department and Foreign Service 

Change in Consular Districts in Yugoslavia . . . 502 
Designations (Boonstra, Briggs, Hall, White) . . 502 

Economic Affairs 

Mr. Heinz To Be U.S. Representative to 14th Ses- 
sion of ECE 501 

U.S. and Industry Leaders Discuss European Coal 

Situation 483 

U.S. Suggestions for Promoting Economic Develop- 
ment of Americas 479 

EI Salvador. President of El Salvador Concludes 
Talks With President Eisenhower (joint state- 
ment) 478 


Mr. Heinz To Be U.S. Representative to 14th Ses- 
sion of ECE 501 

U.S. and Industry Leaders Discuss European Coal 

Situation 483 

White designated Deputy Assistant Secretary for 

European Affairs 502 

Germany. Security in the Free World (Eisen- 
hower) 467 

International Information. U.S.S.R. Selects Final 

Four Films Under Exchange Agreement . . . 483 

International Organizations and Conferences 

Calendar of International Conferences and Meet- 
ings 499 

Mr. Heinz To Be U.S. Representative to 14th Ses- 
sion of ECE 501 

Malaya. Development Loan 484 

Military Affairs. Security in the Free World 

(Eisenhower) 467 

Mutual Security 

Development Loans (Malaya, China) 484 

DLF Releases Summary of Loans to Date .... 484 
The Mutual Security Program — An Indispensable 
Support to U.S. Foreign Policy (Herter, Dillon, 

McElroy, Twining) 485 

Security in the Free World (Eisenhower) .... 467 

Presidential Documents 

President of El Salvador Concludes Talks With 

President Eisenhower (joint statement) . . . 478 
Security in the Free World 467 

Southeast Asia Treaty Organization. Under Sec- 
retary Dillon To Attend SEATO Council of Min- 
isters Meeting 478 

Treaty Information. Current Actions 502 


Security in the Free World (Eisenhower) . . . 467 
U.S.S.R. Selects Final Four Films Under Exchange 

Agreement 483 

United Nations 

Current U.N. Documents 501 

U.S. China Policy (Robertson) 472 

Yugoslavia. Change in Consular Districts in Yugo- 
slavia 502 

Name Index 

Boonstra, Clarence A 502 

Briggs, William T 502 

Dihigo y liopez Trigo, Ernesto 478 

Dillon, Douglas 478, 489 

Eisenhower, President 467, 478 

Hall, Carlos C 502 

Heinz, Henry J., II 501 

Herter, Acting Secretary 485 

Lemus, Jos6 Maria 478 

McElroy, Neil H 495 

Robertson, Walter S 472 

Twining, Nathan F 497 

White, Ivan B 502 

Check List of Department of State 

Press Releases: March 16-22 

Press releases may be obtained from the News 

Division, Department of State, Washington 25, D.C. 

Releases issued prior to March 16 which appear in 

this issue of the Bulletin are Nos. 169 of March 10, 

175 of March 11, and 182 of March 13. 






Herter: House Foreign AfEairs Com- 



Cuba credentials (rewrite). 



Cultural exchange ( India ) . 



SEATO Council of Ministers meeting. 



Dillon : House Foreign Affairs Com- 



Death of J. Klahr Huddle. 



Organizational changes in ICA. 



Herter: death of Sydney Smith. 



Austrian book on U.S. aid. 



DLF loan to China (rewrite). 



Briggs nominated Ambassador to 
Greece (biographic details). 



DLF loan to Malaya (rewrite). 



Strom nominated Ambassador to Bo- 
livia (biographic details). 



U.S.-U.S.S.R. motion-picture exchange. 



Arrival of Prime Minister Macmillan. 



Visit of King Hussein of Jordan (re- 



Itinerary of President of Ireland. 



Satterthwaite : "The Role of Labor In 
African Development." 



Educational exchange (Uruguay). 



Educational exchange (El Salvador), 

• Not prin 

t Held for a later issue of the Bot.letin. 









i Government Printing Office 


j Washington 25, D.C. 

'" ^iiJ^ 













April 4, 1959, marks the 10th aimiversary of the signing of 
the North Atlantic Treaty, which links the United States with 
14 other free nations for our mutual security and progress. 

Tliis new Department of State publication, prepared in con- 
junction with the anniversary observance, describes the aims and 
achievements of NATO in its first decade of existence. 

The colorful 44-page pampUet, prefaced by a message from 
President Eisenliower, contains a series of questions and answers 
on NATO's purpose, organization, financing, and relationship to 
other international organizations of the free world. The pub- 
lication is illustrated with drawings and with an organization 

Copies may be purchased from the Superintendent of Docu- 
ments, U.S. Government Printing Office, Wasliington 25, D.C, 
for 25 cents each. 

Publication 6783 

25 cents 

Order Form- 

To: Stipt Of Pocuments 
Govt. Printing Office 
Washington 25, D.C. 

Please send me copies of NATO, 1949-1959, THE FIRST TEN YEARS 


Enclosed find: 

Street Address : 

$.. - -.-- 

{cash, check, or money 
order /layable to 
Supt.of Docs.) 

City, Zone, and State: 


Vol. XL, No. 1033 

AprU 13, 1959 


OF FOREIGN MINISTERS • Texts of U.S. and Soviet 
Notes 507 


THE U.S. AND ASIA • Remarks by Deputy Under 
Secretary Murphy .................... 512 


by John W. Banes, Jr. • *...••»..•. 517 


MENT • by Assistant Secretary Satterthveaile . . . . • 524 


CAMEROONS • Statements by Ambassador Henry 
Cabot Lodge and Mason Sears and Texts of Resolutions • • 531 

For index see inside back cover 


Vol. XL, No. 1033 • Publication 6802 
April 13, 1959 

For sale by the Superintendent of Documents 

U.S. Qovemment Printing OfBce 

Washington 25, D.O. 


S2 Issues, domestic $8.60, foreign $12.25 

Single copy, 25 cents 

The printing of this publication has been 
approved by the Director of the Bureau of 
the Budget (January 20, 1958). 

Note: Contents of this publication arc not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
OF State Bulletin as the source will be 

The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, 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 
interruitional affairs and the func- 
tions of tlie 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. 

U.S. Proposes Date and Place for Meeting of Foreign iVIinisters 

Following is an exchange of notes between the 
United States and the Soviet Union on the German 


Press release 223 dated March 26 

The Government of the United States refers to 
the note of the Government of the U.S.S.R. of 
March 2, 1959, in response to the United States 
note of February 16 ^ proposing a conference of 
the Ministers of Foreign Affairs of France, the 
U.S.S.R., the United Kingdom and the United 

The United States Government has consistently 
favored meetings of interested powers that could 
provide opportunities for conducting serious dis- 
cussions of major problems and could be an effec- 
tive means of reaching agreement on significant 
subjects. It was for this reason that the United 
States Government in its note of Februaiy 16 pro- 
posed a meeting of the Foreign Ministers of 
France, the U.S.S.R., the United Kingdom and 
the United States. The United States Govern- 
ment notes with satisfaction the Soviet Govern- 
ment's agreement to such a meeting. 

Specifically, the United States Govei-nment pro- 
poses that a meeting of France, the U.S.S.R., the 
United Kingdom and the United States at the 
Foreign Minister level be convened in Geneva 
on May 11, 1959, to consider questions relating to 
Germany, including a peace treaty with Germany 
and the question of Berlin. Naturally, any of the 
four participating governments should have the 
opportunity to present its views on any question 
which it may consider relevant to the problems 

' Delivered on Mar. 26 to the Soviet Ministry of Foreign 
Affairs by the American Embassy at Moscow. 
' For text, see Bdixetin of Mar. &, 1959, p. 333. 

under consideration. The purpose of the Foreign 
Ministers meeting should be to reach positive 
agreements over as wide a field as possible, and in 
any case to narrow the differences between the 
respective points of view and to prepare construc- 
tive proposals for consideration by a conference 
of Heads of Government later in the summer. On 
this understanding and as soon as developments in 
the Foreign Ministers meeting justify holding a 
Summit Conference, the United States Govern- 
ment would be ready to participate in such a con- 
ference. The date, place and agenda for such a 
conference would be proposed by the meeting of 
Foreign Ministers. The conference of Heads of 
Government could consider and if possible resolve 
some wider problems such as those referred to in 
the Soviet Government's note of March 2 and in 
previous conamunications from the United States 
Government and where necessary establish ma- 
chinery for further negotiation on these prob- 

The United States Government fully recognizes 
that Poland and Czechoslovakia, like a number of 
other countries, have a legitimate and direct inter- 
est in certain matters which will be discussed in 
the conference. The possibility of the participa- 
tion of other countries at a certain stage in negotia- 
tions could therefore be contemplated. However, 
the United States Government believes that the 
proposed meeting should at least at the outset in- 
volve only the four powers responsible for Ger- 
many. The United States Government also notes 
that the Soviet Government agrees with the pro- 
posal made in its note of February 16 that German 
advisers should be invited to the meeting on May 
11 and be consulted. 

The Government of the United States in pro- 
posing a Foreign Ministers meeting on May 11 
understands that the Soviet Government would 
find Geneva a suitable location. The Government 

April 13, 7959 


Western Foreign Ministers 
Meet at Washington 

Department Statement 

Press release 210 dated March 23 

The Foreign Ministers of the United Kingdom, 
France, and the United States, as representatives 
of the Western powers having the primary respon- 
sibility for Germany, and the Foreign Minister of 
the Federal Republic of Germany will meet in 
Washington on March 31 and April 1 prior to the 
spring session of the NATO Council. These con- 
sultations will provide an opportunity for a fur- 
ther exchange of views among the four Foreign 
Ministers in anticipation of a possible meeting of 
the Foreign Ministers of the United Kingdom, 
France, the United States, and the Soviet Union. 

of the United States will, therefore, inquire of 
the Government of Switzerland to determine if 
this place and time would be convenient and also 
of the Secretai-y General of the United Nations 
to ascertain if the facilities of the United Nations 
in Geneva can be made available. 


Unofficial translation 
Ko. 15/OSA 

The Government of the Union of Soviet Socialist Re- 
publics has familiarized itself with the note of the Gov- 
ernment of the United States of America of February 16, 
1959 and considers it necessary to declare the following. 

The note of the Government of the United States of 
America does not give an answer to the concrete proposal 
of the Soviet Union with regard to the conclusion of a Ger- 
man peace treaty and with regard to the convening for this 
purpose of a peace conference of the states which took 
part in the war with Germany, as well as with regard to 
the normalization of the situation in Berlin. For the 
solution of these questions, which have cardinal signi- 
ficance for the strengthening of peace in Europe and for 
the future of the German nation, the Government of the 
United States of America endeavors to substitute state- 
ments concerning the desirability of an examination by the 
four powers "of the German problem in all its aspects" 
and does not advance on its part any proposals on the 
essence of the problem. 

The very raising of the question of Germany in this 
note speaks of the lack of desire to consider either the 
situation in fact which has arisen in Germany or the 
demands of common sense. If 14 years ago Germany, al- 
though divided into zones, remained a coimtry with one 
social structure, then today two German states exist 

which have developed in different directions. The govern- 
ments of the Western powers, if they in actuality are striv- 
ing toward a settlement of the German question on a 
workable basis, cannot close their eyes to this fact, espe- 
cially since it was they who were the first to create the 
West German state. 

Having taken from the very beginning of the occupation 
a course toward the division of Germany, the United 
States of America, England and France at the same time 
were preparing the rearmament of the West German state 
created by them. Thus they discarded the Potsdam agree- 
ment, imbued with the ideas of the eradication of German 
militarism from which the peoples of Europe had suffered 
at the price of incredible sacrifices and losses. As subse- 
quent events have shown, their chief concern was the draw- 
ing of Western Germany into their military grouping. The 
participation of the Federal Republic of Germany in 
NATO permitted it to start openly the formation of the 
Bundeswehr and to demand the arming of it with atomic- 
missile armament. Precisely as the result of the policy of 
rearmament and encouragement of the militaristic forces 
of Western Germany, it is again necessary for the Euro- 
pean peoples to live under conditions of worry and alarm 
concerning their future. 

Another independent German state — the German Demo- 
cratic Republic — chose for itself a course of peace and 
social progress. Here there are no grounds for the revival 
of militarism and the carrying out of a policy of aggres- 
sion and revenge. The government of the German Demo- 
cratic Republic has refrained from carrying out military 
conscription and the formation of a mass army. The con- 
trast and disconnection between the two German states 
is deepened still more because of the fact that they belong 
to opposing military-political groupings of powers and the 
ties of specific obligations arising from adherence to these 
groupings. The German Democratic Republic as is known 
is in the organization of the Warsaw Treaty, which has 
no other purpose than the strengthening of peace, the 
reduction of international tension and the cessation of the 
"cold war", while the Federal Republic of Germany is an 
active participant in NATO where everything is subordi- 
nated to the armaments race, to an endeavor to keep the 
world in a condition of tension, and to preparation for 
an aggressive war. 

In this way the postwar development of Germany has 
advanced on the agenda other problems than those which 
stood before the four powers during the first years after 
the defeat of Hitler Germany. Now it is impossible to 
make any step ahead whatever in the German question if 
it is approached by the old yardstick without accounting 
for the existence of two independent German states and 
of the basic differences in the direction of their develop- 
ment. And this situation will not change one iota no 
matter what the quantity of notes or statements made by 
the Western powers in order to refute facts which are 
based on life itself. 

The Western powers propose to consider the German 
question in all its aspects at the same time that they 
themselves have already destroyed the basis for such 
consideration. There is already no trace of a joint policy 
of the four powers with relation to Germany. No one, 
for Instance, can saddle the Soviet Union with responsi- 


Department of State Bulletin 

bility for the fact that the Federal Republic of Germany 
has entered upon a militaristic course of development. It 
is generally known that the Soviet Union many times 
warned the Western powers of this danger for the cause 
of peace and the unity of Germany which such a course 
of development of Western Germany has concealed within 
Itself. On the other hand. It is unlikely that anyone 
would attribute to the Western powers the fact that in 
the German Democratic Republic the peace-loving demo- 
cratic forces have conquered and become firmer. 

There is still a possibility today for return to the col- 
laboration of the four powers on the important question 
connected with Germany. The conclusion of a German 
peace treaty opens up such a possibility. In a peace 
treaty the German Democratic Republic and Federal Re- 
public of Germany would assume identical obligations 
which would exclude the possibility of the revival of 
German militarism, which would secure conditions of 
peaceful development for both German states and would 
free European peoples from the oppressive threat of war. 

The proposal of the Soviet Government on the con- 
clusion of a peace treaty with Germany has received up 
to the present moment the full support of the governments 
of nine states which participated with their armed forces 
in the war against Hitler Germany. The population of 
these countries comprises almost a billion individuals. 
In addition, this proposal has found approval and sup- 
port in wider circles of public opinion in many other 
states. Aren't these convincing facts speaking in favor 
of the conclusion of a peace treaty with Germany in the 
nearest future? 

As to the problem of the unification of Germany, the 
Soviet Government clearly and definitely stated in its 
notes of November 27, 1958 and January 10, 1959,' and 
also in a number of other documents brought to the 
attention of the Government of the United States of 
America, that it considers interference in the affairs of 
the two German states and their substitution by anybody 
whatsoever in the solution of the problem of unification 
impossible and inadmissible. The Germans themselves 
must and should solve this problem. The only thing that 
the four powers could undertake in this direction without 
infringing on the sovereignty of the German Democratic 
Republic and Federal Republic of Germany is to aid the 
removal of the current alienation in the relations between 
both German states and to bring about a rapprochement 
and agreement between them for the purpose of solving 
the task of the reunification of Germany. The Soviet Gov- 
ernment has expressed readiness to render such aid, sup- 
porting in particular the proposal of the Government of the 
German Democratic Republic about the creation of a Ger- 
man confederation. It would be natural to expect that the 
Government of the United States of America, which states 
its adherence to the cause of the reunification of Germany, 
will manifest a constructive approach to this proposal. 
Meanwhile up to now such an approach has not been 

The Soviet Government would like also to emphasize 
that, according to its profound conviction, the conclusion 

'For texts, see ibid., Jan. 19, 1959, p. 81, and Mar. 9, 
1959, p. 333. 

of a peace treaty with Germany and normalization of the 
situation In Berlin in current conditions would in them- 
selves be the best means for bringing closer also a solu- 
tion of the problem of reunification in accordance with 
the national aspirations of the Germans and with the 
interests of peace and security of other peoples. 

In advancing a proposal for conclusion of a peace 
treaty with Germany, the Soviet Government proceeds 
from the need to bring to a conclusion the settlement of 
questions remaining open since the Second World War 
and creating complications in relations among states. 
This can be objected to only by those who do not wish to 
part with the current unsettled situation, who strive to 
preserve the soil for dangerous clashes among the states, 
who wish to keep the world in a state of fever, who are 
for preparation of war, and not for strengthening of 

A peace treaty, if the interested states really strive for 
it, can be concluded with both German states since now 
only they speak in the name of the Germany which signed 
the act of surrender, and a peace treaty ought to tix the 
existing situation. One must live in a world of illusions 
to count on changing the social order of any of these 
states with the aid of external intervention. Is it not 
clear that any attempt to apply force to the German 
Democratic Republic and the Federal Republic of Ger- 
many would lead to a clash of the two opposing military 
groupings of which they are participants and would bring 
down on mankind a new war, a hundred times more 
serious in its consequences than all previous wars? 

Conclusion of a German peace treaty would mean also 
settlement of the Berlin question. The Soviet Govern- 
ment more than once has called the attention of the Gov- 
ernment of the United States of America to the fact that 
the situation which has emerged in Germany is not nor- 
mal and represents in itself a serious source of interna- 
tional tension especially in relations among the states of 
Europe. The Soviet Government stands for the solution 
of this question on a basis acceptable for all interested 
parties, with the aim of ensuring confidence and security 
of the peoples of Europe. Precisely for this reason it 
advanced the proposal to transform West Berlin into a 
demilitarized free city, whose independence and necessary 
business, cultural and other ties with the countries of 
West and East would be protected by reliable interna- 
tional guarantees. In these guarantees, in the opinion 
of the Soviet Government, the great powers can take 
part with all their weight and authority, which already 
in itself would ensure the effective character of these 
guarantees and reliably protect the rights and status of 
a free city of West Berlin. The enlisting of U.N. par- 
ticipation in the guarantees is also entirely possible and 
responsive to the interests of both the population of a free 
city and of securing peace. It goes without saying that 
the Soviet Government is ready to discuss the question 
about guarantees jointly with other interested states In 
order to come to a mutually acceptable agreement. 

As for the statement contained in the note of the Gov- 
ernment of the United States of America about its readi- 
ness to apply "all appropriate means" for preserving 
the occupation of West Berlin, this of course does not 
change the point of view of the Soviet Government re- 

April 13, 7959 


garding the need to solve the Berlin question and does not 
influence its intentions in this regard. It is hardly nec- 
essary to prove to the Government of the United States of 
America that the parties whom they threaten with the 
application "of all means" have at their disposal every- 
thing necessary to stand up for themselves in a worthy 
manner and to give a rebuff to any aggression. The 
Soviet Government would like to emphasize that as an 
ally of the German Democratic Republic according to the 
Warsaw Treaty it will completely fulfill its obligations 
according to this treaty. As is known this same position 
is taken by all state participants of the Warsaw Treaty 
who are united in their determination to do everything 
possible for the preservation and if it will be neces.sary 
for the restoration of peace. 

How in such a situation must one evaluate the threats 
voiced in the West to use tanks and aviation for break- 
ing through to Berlin after the German Democratic Re- 
public as a sovereign state with whom a peace treaty has 
been signed becomes complete master over communica- 
tions between West Berlin and the Federal Republic of 

If behind these threats there is really hidden the in- 
tention to resort to arms, then anyone who decides on this 
will have to take on himself a heavy responsibility before 
mankind for the unleashing of a new war. If the initia- 
tors of such threats count on conducting a war of nerves 
and bringing pressure on the Soviet Union, they then 
must know that such methods in relation to the Soviet 
state have always ended in failure and will suffer the 
same failure in the future as well. According to the 
profound conviction of the Soviet Government now more 
than ever it is necessary to undertake urgent effective 
measures in order to avert the dangerous course of events. 
Therefore it once more returns to its proposal on the 
holding of a meeting of statesmen at the highest level. 

The negotiations of Ministers of Foreign Affairs which 
are now proposed by the Government of the United States 
of America are a long road. 

If the Heads of Governments have not yet adopted a 
firm decision in oi'der to build relations among states on 
the basis of cooperation and in order not to permit any- 
thing that would complicate these relations, then can 
other representatives of the states adopt such decisions 
which would secure a basic improvement of relations 
among states? It cannot be doubted that the efforts of 
such representatives would be directed not so much to 
aiding rapprochement among states as to pursuit of rea- 
sons and motives which guide one or another state in 
introducing its proposals. 

Even the very fact of a meeting of the Heads of Gov- 
ernment in the present strained situation imdoubtedly 
would further the normalization of the whole interna- 
tional atmosphere. Can one ignore the truly great his- 
torical significance which would have a decision of the 
Heads of Government participating in the conference that 
henceforth they will make efforts toward a settlement of 
all international problems in the interests of peace on 
the basis of the princlple.s of peaceful coexistence and 
will not permit anything that would interfere with the 

achievement of such noble ends? This alone would al- 
ready create propitious conditions for the successful set- 
tlement of concrete questions engendering tension in 
international affairs. 

Of course, the Heads of Government could consider a 
wider circle of questions than is proposed by the Govern- 
ment of the United States of America for a conference of 
Ministers of Foreign Affairs. This especially refers to 
those questions the lack of solution of which conceals 
within themselves a threat to the security of peoples and 
international peace. The Soviet Government proceeds 
on the basis that the Heads of Government will discuss 
the proposals introduced by it about the conclusion of a 
peace treaty with Germany, and also about the adoption 
of joint measures toward the elimination of the abnormal 
position which has resulted in connection with the foreign 
occupation of West Berlin. Of course, decisions agreed 
at this conference about a peace treaty would have to be 
submitted to a peace conference, as was proposed by the 
Soviet Union. 

In addition, at the conference of Heads of Government 
could be discussed questions connected with the safe- 
guarding of European security and disarmament, such 
as the mutual withdrawal of forces and the creation of 
an atom-free zone and a zone of disengagement between 
the armed forces of the Warsaw Pact and NATO organi- 
zations, the reduction of the armed forces of the Union 
of Soviet Socialist Republics, the United States of Amer- 
ica, Great Britain and France on the territories of other 
states, the prohibition of atomic and hydrogen armament 
and the cessation of its testing, and others. The Soviet 
Government has at the appropriate time named these 
questions and they are well known to the Government of 
the United States of America. 

The Soviet Government considers that for successful 
work in the preparation of a peace treaty with Germany 
and the decision of questions connected with the safe- 
guarding of European security, it is necessary that there 
be active participation in this work by the representatives 
of countries which were subjected to aggression from the 
side of Hitlerite Germany. Proposals directed to the 
limiting of the discussion of a peace treaty in the frame- 
work of four powers can only call forth difficulties in the 
achievement of agreed decisions. In view of this, the 
Soviet Government considers it necessary that at the con- 
ference should take part, besides the four powers, also 
interested countries, like Poland and Czechoslovakia, as 
states bordering on Germany which became the first vic- 
tims of Hitlerite aggression. With regard to the participa- 
tion in the conference of the German Democratic Republic 
and the Federal Republic of Germany, the Soviet Gov- 
ernment considers that at the summit conference in the 
examination of questions about a peace treaty with Ger- 
many and about West Berlin both the German Demo- 
cratic Republic and the Federal Republic of Germany 
must be represented. In the West, voices are often heard 
against a summit conference since, they say, there are 
no guarantees that this conference will not suffer failure. 
Of course, if from the very beginning one or another par- 
ticipant has no desire to further coming to an agreement 


Department of State Bulletin 

at such a meeting, then it really can suffer failure. But 
in such a case any conference, on whatever level it is 
conducted, will inevitably be doomed to failure. 

To secure the success of a summit conference it is 
necessary that all its participants be guided by a sincere 
desire to come to agreement and realize that for the sake 
of securing a lasting peace among peoples it is necessary 
to renounce attempts to achieve any one-sided advantages 
In the negotiations. 

The Soviet Government adheres to the opinion that 
a meeting at the highest level has at the present time 
the greatest chances of achieving positive results. Such 
authoritative statesmen as the Heads of Government, who 
possess very great plenary powers and experience, must 
have tlieir say in order to give a new direction to the de- 
velopment of relations among states. After achieving 
agreement among themselves on vital international ques- 
tions, the Heads of Government would be able then to 
instruct the Ministers of Foreign Affairs to work out 
future measures for the realization of the joint decisions 

If the governments of the Western powers are not yet 
ready to take part in a summit conference, then the 
Soviet Government considers that for an examination 
of questions concerning the peace treaty with Germany 
and concerning West Berlin, there could be convoked a 
conference of the Ministers of Foreign Affairs of the 
Union of Soviet Socialist Republics, the United States of 
America, Great Britain, France, Poland, and Czechoslo- 
vakia. Besides, the Soviet Government declares its agree- 
ment with the proposal of the Governments of the United 
States of America, Great Britain, and France that at this 
meeting both German states — the German Democratic Re- 
public and the Federal Republic of Germany — would be 
represented. Since both these concrete que.stions had long 
since matured, the Soviet Government considers it appro- 
priate to set for the work of a meeting of Foreign Min- 
isters a term of not more than two or three months. 

As for the question about the time and place of a 
meeting of Hearts of Government, the Soviet Govern- 
ment would consider it possible to convene such a con- 
ference in April of this year in Vienna or Geneva, if this 
is convenient for the Government of the United States of 
America, and also the governments of the state partici- 
pants of such a conference, and if, of course, the Govern- 
ment of Austria or Switzerland would be ready to extend 
hospitality to the participants of such a conference. 

If the Government of the United States of America 
is not ready for a meeting of Heads of Government, then 
the Soviet Government proposes at the above-noted time 
and place to convene a conference of Ministers of Foreign 
Affairs with the above-proposed composition. 

The Soviet Government would like to express the hope 
that its proposal will meet support on the part of the 
Government of the United States of America, which, to- 
gether with the Soviet Union and other state participants 
of the anti-Hitler coalition in the period of the Second 
World War, made its contribution to the cause of smash- 
ing Hitlerite Germany and now with the conclusion of 
a peace treaty with Germany would further the removal 
of a military danger on the part of German militarism. 

Prime Minister Macmillan 
Visits Washington 

Prime Minister Harold Macmillan of the 
United Kingdom came to Washington for infor- 
mal discussions from March 19 to 2 J). Following 
is an exchange of greetings between Mr. Macmil- 
lan and Vice President Nixon upon the arrival of 
the Prime Minister on March 19. 

Press release 203 dated March 19 

Vice President Nixon 

Mr. Prime Minister, it is a very great honor and 
privilege for me to welcome you again to Wash- 
ington. And, while this is going to be a very busy 
working trip for you, I can assure you that you 
will receive a very warm welcome every place that 
you are here in the very brief few days of this visit. 

We have noted the travels on wluch you have 
embarked in the past few weeks, and all of us in 
this country and in this Government appreciate 
the very dedicated work that you have been doing 
and are doing in the cause of unity of the free na- 
tions and peace for the world. We know too that 
the conversations that you will have with Presi- 
dent Eisenhower and with members of our State 
Department will contribute to the close vmder- 
standing and to the unity of purpose which has 
marked our relationships in the past and which 
is essential if we are to have peace with freedom 
in the future. 

Prime Minister Macmillan 

Mr. Vice President, I am most grateful to you 
for your warm words of welcome. As you have 
said, we have done quite a lot of traveling in the 
last few weeks. Our journeys began with Mos- 
cow, and since then the Foreign Secretary and I 
have been to Paris and to Bonn and yesterday to 

We have had very full and friendly discussions 
in these three capitals of our friends about the in- 
ternational situation in the light of what we 
learned at Moscow. And now we are here by your 
good grace and kindness to further conversations 
with the President and his colleagues. 

I hope also to have the opportunity of some talk 
with tlie Secretary of State, Mr. Dulles. His in- 
domitable spirit is a great encouragement and in- 
spiration to us all. 

April 73, J 959 


When the Foreign Secretary and I were here 
last year in June,' the concept that came out of the 
talks that we had with the President and Mr. Sec- 
retary Dulles was that of the interdependence of 
the free world. This is a concept which is more 
than ever valid today when the problems before us 
are both serious and urgent. 

Fortunately, one of the main elements of that 
interdependence — perhaps I may say the keystone 
of it — is the partnership between the United 
States and Great Britain. I believe I can truly 
say that this partnership has never been closer 
than today. It is in that spirit that we shall have 
pur talks in the next few days. 

I referred just now to the discussions which 
the Foreign Secretary and I had in Russia. I am 
persuaded that the Soviet leaders realize that 
they, like we, have a common interest in avoid- 
ing war. But what I think we did achieve was 
their endorsement of the principle of resolving 
differences between nations by negotiation, and 
not by force or imilateral action. If this be true, 
this is a worthwhile gain. I then, when I was in 
Eussia, defined negotiations in this way : that they 
should be based on knowledge gained in full dis- 
cussion and conducted with a sincere desire to 
reach fair agreements. 

To agree to negotiate is not to abandon one's 
principles ; it is to find the true f orura to maintain 
them. Wliat we have now to do with all our 
allies is to work out a common policy which com- 
bines firmness and reasonableness. It is the right 
mixture of these which will once again provide 
strength and unity of the free world. 

Thank you very much. 

United States and Bulgaria 
Resume Diplomatic Relations 

Press release 226 dated March 27 

Agreement has been reached between the Gov- 
ernments of the United States and of the People's 
Republic of Bulgaria for the resumption of dip- 
lomatic relations between the two countries, which 
were suspended in February 1950,^ and the reestab- 
lishment of their respective Legations at Sofia 
and "Washington. This agi-eement has been 
reached as a result of conversations which have 

taken place since March 4, 1959, between Deputy 
Assistant Secretary for European Affairs Foy D. 
Kohler and the Bulgarian Permanent Represen- 
tative to the United Nations, Ambassador Peter 
G. Voutov, at New York and Washington. These 
conversations have successfully overcome the pre- 
viously existing obstacles to the resumption of 
normal diplomatic relations reflecting the tradi- 
tional friendship between the Bulgarian and 
American peoples. 

King Baudouin of Belgium 
To Visit United States 

White House press release dated March 23 

The President of the United States announced 
on March 23 that His Majesty King Baudouin of 
the Belgians has accepted the President's invita- 
tion to visit the United States. His Majesty will 
be in the United States for a 10-day official visit 
beginning at Washington on May 11. 

Promoting Better Understanding 
Between the U.S. and Asia 

iy Deputy Under Secretary Murphy ^ 

It is a source of great satisfaction to me to have 
this exceptional opportunity to meet with the 
members of the Japan-America Society as well 
as those of the Association for Asian Studies. 
"Wlaen Mr. [Francis B.] Sayre [president, Japan- 
America Society of Washington] suggested that 
I participate with my friend. Ambassador 
[Koichiro] Asakai, in today's special meeting, 
I welcomed it because of the representative mem- 
bership of both organizations and especially be- 
cause of their influence and interest in American 
relations in Asia and the Western Pacific. 

I am particularly happy to be associated with 
Ambassador Asakai because I know of no Asian 
who is a more intelligent friend of my country 
than the Ambassador. I know that he devotes 
his tremendous abilities, his diplomatic skill and 

' BuixETiN of July 7, 1958, p. 23. 

"For background, see Bulletin of Mar. 6, 1950, pp. 


' Remarks made before the Japan- America Society of 
Washington at Washington, D.C., on Mar. 25 (press 
release 219). 

Department of Sfafe Bulletin 


experience to promoting happy and solid relations 
between Japan and the United States. 

And by the same token with yom- permission I 
would like to pay tribute to the devotion of Sec- 
retary Robertson 2 in stimulating the mutual 
interest of the 11 Asian comitries, including Ja- 
pan, in close and harmonious relations with the 
United States. He has been successful in develop- 
ing a breadth of understanding and has inspired 
a mutual confidence which have gone far to avoid 
conflicts of interest or, when these have unavoid- 
ably happened, to facilitate their friendly solu- 
tion. I share with him a belief in the practical 
value of the devoted work of the membership of 
your organizations in promoting a high degree of 
understanding between our coimtries in ways 
which are often beyond the reach of mere official- 
dom and which are so precious to a fundamental 
meeting of the minds between peoples. 

Apropos of efforts to promote better imder- 
standing, it might be timely to state that the 
American people's desire to know about and 
undei-stand developments on the mainland of 
China is thwarted, not by the United States Gov- 
ernment but by the Peiping regime. As an ex- 
ception to our policy against travel by American 
citizens in areas controlled by the regime which 
has refused to negotiate a political settlement of 
the Korean war, in October 1957 we validated the 
passports of 26 representatives of American news- 
gathering organizations for travel in Communist 
China. We have done this in order to facilitate 
the flow of information to the American people on 
conditions there. The Chinese Communists, how- 
ever, have so far refused to admit these newsmen 
except in one instance, where the man was identi- 
fied as an agriculturist. 

Taiwan and Berlin Issues 

Our meeting today coincides with a number of 
developments in the international field which are 
of interest to Japan-American relations. 

Last September we were suddenly faced by a 
heavy bombardment from the mainland of the 
offshore island positions held by the forces of the 
Republic of China. This abi-upt orchestration of 
military force followed shortly after a visit to 
Peiping by the Soviet Chairman of the Council 
of Ministers, Nikita Khrushchev. It was ac- 

' Walter S. Robertson, Assistant Secretary of State for 
Far Eastern Aifairs. 

companied by a barrage of radio broadcasts from 
Peiping which left little doubt that it was part 
and parcel of a campaign designed to drive the 
Republic of China forces not only from the off- 
shore positions but from Taiwan. Implicit in 
the broadcasts was the repeated suggestion that 
United States forces should be driven from the 
Western Pacific. 

Voices then were heard in different world areas 
expressing the notion that it would be foolhardy 
to risk war over the insignificant offshore posi- 
tions because geograpliically they seemed to form 
a natural part of the mainland of China, even 
though they had never been in the possession of 
the present Peiping regime. Better judgment, 
however, prevailed, and by steadfast courage and 
determination the positions remained intact. 

What is interesting in tliis experience, however, 
is a certain similarity between those critics of a 
firm stand on the question of resistance to force 
and aggression as a means of solution of problems 
and the more recent issue of Berlin. It is true that 
the issues are not identical. In the Far East prob- 
lem concerning the offshore islands and Taiwan, 
the conflict arose between the opposing Chinese 
elements. The Berlin issue was pi'ovoked directly 
by the Soviet Union as one of the four occupy- 
ing powers exercising rights and responsibilities 
of military occupation resulting from military 

But the point of similarity I have in mind is 
that, when an atmosphere of crisis developed in 
the first instance by military action provoked by 
the Communist regime in Peiping, there was a 
small chorus of hasty reaction to the effect that we 
should not risk generalized conflict over the insig- 
nificant island positions; that it was the part of 
caution and prudence to yield to this type of forci- 
ble aggression in violation of the spirit of the 
United Nations Charter in the general interest of 
peace. The implication was that, if the free world 
yielded on this issue, the crisis would pass and 
there would be peace in the Western Pacific. This 
thesis was stoutly asserted by some in the face of 
the Peiping declarations that their intent and pur- 
pose continued to be the conquest of Taiwan, 
Likewise, in the case of the Berlin issue, we 
have heard in these past weeks similar voices, 
sometimes the same voices, urging that the free 
world abandon its rights and responsibilities in 
West Berlin on the theory that it would be fool- 
hardy to risk generalized war over the Berlin issue. 

April 13, 7959 


Actually these voices overlook the fact that what 
is at stake is not only our rights in West Berlin, 
including peaceful access to it, but also the very 
freedom of tlie 2% million men, women, and chil- 
dren of West Berlin. 

Inherent in these attitudes on both issues — and 
I am glad that they are by far small minority atti- 
tudes — is an assumption that to yield on an issue 
under such circumstances of application of force or 
the threat of force where a given issue is described 
as insignificant or of small importance would be 
the happy solution; that there would be an end 
of pressures — a sort of peace-in-our-time idea — 
and that the world would be able to relax and de- 
vote itself to the peaceful pursuit of improved 
living conditions and the enjoyment of the fruits 
of our labors. 

Unfortunately we have learned, as a result of 
our experiences since World War II, that this type 
of easy concession imder pressure of intimidation 
and force does not promote the chances of endur- 
ing peace. On the contrary it only encourages 
further unreasonable demands and leads to fur- 
ther crisis. This is be-cause it is quite clear that 
the leadership of the international Communist 
movement is not content with small local gains. 
These are but steppingstones in a program of 
larger domination. Thus we know that in the 
European situation the Soviet objective is not 
merely the local question of four-power occupa- 
tion of the City of Berlin or the technical ques- 
tions of access but the larger question of a Ger- 
many subservient to external diktat. Thus Mr. 
Molotov was fond of saying "as goes Germany, 
so goes Europe." Even though he may tempo- 
rarily be absent from the policymaking group in 
the Soviet leaderehip, his ideas seem to continue. 

Time for Creative Diplomacy 

Thus we are faced with another in what is no 
doubt a series of provocations of critical issues 
which the free world is called upon to meet. In 
the present case I think there is cause for a great 
deal of satisfaction in the steadfast manner in 
which the West is meeting an exceedingly com- 
plex and difficult problem. There is no doubt 
great wisdom in the efforts of the Western lead- 
ership to thoroughly explore the issue in a series 
of negotiations and consultations which will leave 
no stone unturned in the quest of a peaceful solu- 
tion. This is a fine example of courageous states- 

manship which is not harnessed to sterile notions 
of a status quo but one in wliich imagination is at 
play to progress and to use all the apparatus of 
negotiation and diplomacy which can be brought 
to bear in this kind of a situation. It seems to 
me that this offers the best kind of a guarantee 
against the free world's becoming engaged in war. 
War could happen either through miscalculation 
or a chain of events such as happened before 
World War I which led to a major conflict for 
whicli the coimtries involved were not prepared. 
Of course thei'e could always be the possibility of 
a coldblooded plan for such hostilities, but we ex- 
clude this as unthinkable because with present 
modern instruments of destruction such a purpose 
would be self-defeating. Therefore it seems to 
us that this is the time for creative diplomacy, to 
an-ive at the maximmn understanding possible in 
the circumstances based on a certain confidence 
that neither side regards modern warfare, with 
its elements of absolute destruction, as a thinkable 

Our policy in the free world is based on the 
principle of interdependence which was pointedly 
referred to by Prime Minister Macmillan in his 
Statement on arrival at Washington [March 19].' 
The principle of interdependence applies in our 
relations in Asia and the Western Pacific just as 
it does in Europe. It provides the necessary bul- 
wark which protects the liberty of our people to 
pursue their destinies and at the same time permits 
a more equitable share of the staggering burdens 
which modern defensive requirements impose in 
this highly competitive world situation. That 
principle, I am sure, will best serve the mutual 
interests of both Japan and the United States. 

U.S. Expresses Concern at Actions 
of Chinese Communists in Tibet 

statement by Acting Secretary Herter, March 26 

Press release 222 dated March 26 

I am deeply shocked at reports seeping out from 
Tibet about the ruthless suppression of human 
liberties there and the determined effort by the 
Chinese Communists to destroy the religion and 
culture of the people of Tibet. 

It has been only 8 yeai"s since the Peiping re- 

' See p. 511. 


Department of State Bulletin 

gime agreed to respect Tibet's religious and cul- 
tural autonomy. Evidently the Communists have 
broken that agi'eement as part of their ruthless 
drive to eliminate all individuality and human 
values within their empire. Once again the hy- 
pocrisy of the Communists is demonstrated. 
They constantly charge others with aggression 
and interference, but when a courageous people 
within their grasp seeks liberty their answer is 
ruthless repression. 

We are saddened by the suffering of the Tibetan 
people, and yet we see in their resistance efforts 
one more heartening example of the indomitable 
spirit of man. 

Department Statement, March 28' 

The order issued by Chou En-lai clearly reveals 
Peiping's intention to destroy the historical au- 
tonomy of the Tibetan people. This is a blatant 
violation of Peiping's solemn pledge of May 1951 
guaranteeing the Tibetans political and religious 

In place of the legitimate Tibetan Government 
dissolved by the order the Communists have estab- 
lished direct military rule. As evidence we note 
that among the five Chinese appointees on the 
revised administrative control committee is a 
Deputy Political Commissar of the Red Chinese 
Army. The Connnunists' order states that the 
Panchen Lama will act as Chairman of the new 
Tibetan regime. The Panchen Lama has never 
been the primaiy religious leader of Tibet, and it 
is clear that the replacement of the Dalai Lama 
has been effected by foreign intervention without 
the consent of the Tibetan people. The Panchen 
Lama was brought up in China and came to Tibet 
in the wake of the Chinese Red Army. 

A significant feature of the Chinese Communist 
statements this morning [March 28] is the admis- 
sion that the Tibetan resistance to Chinese Com- 
munist rule is widespread and continuing. The 
statements admit that the Communists have been 
trying to suppress by force this Tibetan resistance 
since last May. By their count at least 20,000 
Tibetan patriots are in arms against them. They 
also state that the entire Tibetan Army has joined 
the resistance movement. 

The United States is profoundly sympathetic 
with the people of Tibet in the face of the barba- 

' Read to news corresiwndents on Mar. 28 by Francis W. 
Tiilly, Jr., press officer. 

rous intervention of the Chinese Communist im- 
perialists to deprive a proud and brave people 
of their chei'ished religious and political autonomy 
and to pervert their institutions to Communist 

President Eisenhower Receives 
Austrian Booi< on U.S. Aid 

Press release 197 dated March 18 

A book dedicated to "the unknown American 
taxpayers through whose good will millions were 
given for the reconstiiiction of the Austrian econ- 
omy" was presented to President Eisenhower on 
March 18. Wilfried Platzer, the Austrian Am- 
bassador, presented to the President a copy of 
Zehn Jahre ERP in Oesterreich 19J^/1958 {Ten 
Years of the European Recovery Program in Aus- 
tria 1948/1958), which has been published in 

The 368-page volume reviews the course of Aus- 
tria's economy since 1945 and cites, with sup- 
porting facts and figures, the vital contribution 
which U.S. assistance made to the reconstruction 
of the Austrian economy. 

Five forewords by five leading Austrian Gov- 
ernment officials introduce the book. 

"Wherever and however we celebrate the anni- 
versary of Austria's rescue from economic col- 
lapse," wrote Federal Chancellor Raab in the first 
foreword, "we should be mindful of the fact that 
the means for our reconstruction were contributed 
by the American taxpayer. ... To him, Amer- 
ica's man in the street, Austria owes its thanks." 
Vice Chancellor Bruno Pittermann wrote in the 
preface : "The peoples of Europe, Austria among 
them, have recognized Marshall plan aid as a life- 
saving blood transfusion made at a crucial mo- 
ment of economic decline. We Austrians shall 
always remember this aid witli deep gratitude." 

In addition to presenting an overall survey of 
the financial achievements of Austria during the 
10-year period, the book also throws light on the 
psychological effects of ERP and how it mobilized 
the psychological energies of the Austrian people 
and helped them regain their national self- 
confidence. "None of the political steps which 
Austria took in the past decade," wrote Austrian 
Foreign Minister Leopold Figl in his foreword, 
"would have been possible without the economic 

April 13, 7959 


help of the United States within the framework 
of the European Recovery Program. Austria's 
gratitude has manifested itself in its clear inter- 
vention for all peaceful goals and in its mainte- 
nance arid protection of the dignity of the human 

One chapter of the book is entitled "The Hole 
in the East" and discusses in a candid manner the 
tight Soviet grip on the economy of tlie zone of 
Austria controlled by Eussia from 1945 to 1955 
and how the Austrian Government was able to 
solve the problems of this sector by means of U.S. 
aid funds after the Russians had evacuated their 
occupation forces. 

The book sums up the effects of U.S. assistance 
in the following passage : 

"If one reviews the accomplishments of the 
European Recovery Program in Austria despite 
the stringent economic conditions of the year 1958, 
if one contemplates the great crises of the last 10 
years in the economy and the communications of 
Austria from the viewpoint of its proven ability 
to resist a crisis in the economy, if one measures 
the confidence which the Austrian people have in 
the stability and the capabilities of their economy 
and its rising standard of living in spite of con- 
tinued unsettled international conditions, and if 
one takes into calculation the sound currency, then 
we come to the inevitable conclusion that the 
American taxpayer invested his money success- 
fully in the stabilization of Austria." 

Germany Makes Prepayment on Debt 
to U.S. for Postwar Economic Aid 

Press release 218 dated March 25 

The Governments of the United States and the 
Federal Republic of Germany exchanged notes at 
Bonn on March 20 under which the Federal Re- 
public agrees to make an advance payment of $150 
million on March 31, 1959, on its indebtedness to 
the United States for postwar economic assistance 
totaling approximately $3 billion. This debt 
arose as a result of U.S. expenditures in Germany 
under the Marshall plan and other assistance pro- 
grams. An agreement for settlement of this in- 
debtedness, signed at London on February 27, 


1953,^ provides for payment to the United States 
of $1 billion with interest over a period of 30 years. 
Semiannual payments of interest beginning July 
1, 1953, and of principal installments begimiing 
July 1, 1958, have been made by the Germans under 
this agreement as they became due. 

This advance payment to the United States ful- 
fills a requirement of the 1953 agreement that, in 
the event of a German prepayment on their corre- 
sponding debts to either the British or French 
Governments, the Federal Republic will, unless 
the United States agrees otherwise, make propor- 
tionate prepayment on its postwar assistance debt 
to the United States. A prepayment of a compa- 
rable percentage of the Federal Republic-United 
Kingdom debt had already been offered by the 
Federal Republic as part of the financial assistance 
given the British balance of payments. 

The U.S. note was signed by the Charge d'Af- 
faires at Bonn, Henry J. Tasca, and the German 
note by Foreign Minister Heinrich von Brentano. 


I have the honor to refer to your Excellency's 
note of March 20, 1959, which, in agreed transla- 
tion, reads as follows : 

I have the honor to declare that, in accordance with 
the agreement of February 27, 1953 between the Federal 
Republic of Germany and the United States of America 
regarding the settlement of the claim of the United States 
of America for post-war economic assistance (other than 
surplus property) to Germany (hereinafter referred to 
as the agreement), the Federal Government is ready to 
conclude the following agreement with the Government 
of the United States of America. 

(1) The Federal Government shall make a prepayment 
of $150,000,000.00 by March 31, 1959 on the principal sum 
still outstanding under the agreement. 

(2) As regards the prepayment to be made by the 
Gennan Federal Government under paragraph 1 above, 
the Government of the United States of America agrees 
that instead of the semi-annual installments of $23,- 
790,000.00 as stated in paragraph 2, Article 1 of the agree- 
ment, the Federal Government shall in 1961, 1962, 1963, 
1964, and 1965 only pay semi-annual installments to the 
amount required under the agreement as interest on the 
principal sum still outstanding in those years, and in 1966 
shall make additional payments in liquidation of the prin- 
cipal sum only inasmuch as the principal sums owed and 
due under the agreement have not already been settled 
by the prepayment under paragraph 1 above. 

(3) The new amortization schedule to liquidate the 
debt arising out of the post-war economic assistance of 

' Treaties and Other International Acts Series 2795. 
Department of State Bulletin 

the United States of America (other than surplus prop- 
erty), a copy of which is attached,^ follows from the 

If the Government of the United States of America 
agrees with the above provisions, I have the honor to 
suggest that this note and your Excellency's reply to it 
should be regarded as an agreement between the two 
Governments, to enter into force on the day of the receipt 
of your reply. 

I have the honor to inform your Excellency that 
the Government of the United States of America 
accepts the foregoing provisions and accordingly 
agrees that your Excellency's note and this reply 
shall constitute an agreement between the two 

Accept, Excellency, the renewed assurances of 
my liighest consideration. 

Passports and the Communist Conspiracy 

hy John W. Hanes, Jr. 

Administrator, Bureau of Security and Consular Affairs ' 

Foreign relations used to be something that this 
country thought it could afford largely to ignore 
or at least to delegate to the sole attention of a 
few people who were interested in such things in 
Washington. The pioneer work which your own 
organization, comprised of so many leading citi- 
zens of this great central city of the United 
States, has done for nearly 40 years is one very 
tangible reason why that situation has changed. 

Today it is self-evident that our foreign rela- 
tions are inseparable from our national security. 
We all recognize that our security, our lives, and 
our very existence, both as individuals and as a 
Nation, are effectively threatened from abroad. 
We all recognize the existence of a powerful and 
implacable hostile force dedicated to world con- 
quest and to the destruction of all that our Ee- 
public and our people stand for. The hostile 
force is international communism, and its primary 
manifestation is Soviet Russia. It is also, how- 
ever, an international conspiracy that extends into 
every nation in the world, including our own. 

These facts have a connection with the U.S. 
passport. I would like today to tell you why. 

A great deal of confusion and misunderstanding 
has surroimded the matter of Communists and 
passports. The misunderstanding has related 
both to the facts and to the issues which are in- 

" Not printed here. 

* Address made before the Chicago Council on Foreign 
Relations, Chicago, 111., on Mar. 24 (press release 213 
dated Mar. 23). 

volved, as well as to others which are not but 
which have been introduced into the controversy. 
I hope to set the record straight on these facts 
and issues. 

The Supreme Court Decision 

In June 1958, in the Kent-Briehl ^ and Dayton ^ 
cases, the United States Supreme Court by a 
majority of five to four handed down decisions 
holding, in effect, that the Secretary of State does 
not have the authority to refuse a passport be- 
cause of membership in the Communist Party or 
even because he has specifically found that an ap- 
plicant is going abroad willfully and knowingly 
to engage in activities which would advance the 
Communist movement. In both decisions the 
Court denied the Secretary's right because the 
Congress has not passed legislation specifically 
giving the Secretary that right. Contrary to 
popular belief, the Supreme Court did not hold 
that it was unconstitutional to deny a passport to 
a Conmivmist. It did say that any legislation 
giving the Secretary the right to make such a 
denial must carefully protect the constitutional 
riglits of citizens. 

Since that date the administration has been ur- 
gently seeking the passage of such legislation by 
the Congress. Although the House overwhelm- 
ingly passed a bill in the closing days of the last 

' Kent V. Dulles, 357 U.S. 116 (1958). 
'Dayton v. Dulles, 357 U.S. 144 (1958). 

April 73, 7959 


session of Congress, tlie Senate failed to act; and 
neither House has taken action as yet in this 

The Nature of the Communist Conspiracy 

In order to understand why this situation is 
serious it is necessary first to understand the na- 
ture and methods of the international Communist 

That conspiracy today creates a greater menace 
to the United States than we have ever faced be- 
fore. With assets of some 900 million people and 
16 once-independent countries that have fallen 
under its control, it commands frightening re- 
sources. The United States is the only power 
strong enough to maintain the alliance which 
alone keejjs international communism from its 
goal of world conquest. We would be naive in- 
deed if we believed that its vast and harshly reg- 
imented resources were not consistently committed 
against us in every way which could do us harm, 
openly and secretly, abroad and at home. 

This conspiracy is truly international. It is 
controlled and directed from Moscow. That part 
of it which exists in America is no more Amer- 
ican than that part which rules in Hungary is 
Hungarian. Some hard-core supporters of the 
international Communist movement hold Amer- 
ican citizenship, but they are not ordinary Amer- 
ican citizens. They voluntarily give service and 
allegiance to a foreign ideology which promotes 
the objectives of a foreign power. 

Some people feel that, because actual member- 
ship in the Communist Party, U.S.A., as of today 
is small, the American brand of communism 
therefore offers no thi-eat to our internal security. 
Many top Communists, of course, are not party 
members. The Communists themselves do not 
even agree that the party is weak. Last month 
William Lorenzo Patterson in an editorial in The 
Worker said: "The prevailing political atmos- 
phere permits increasing activities with lessening 
dangere of victimization. . . . Let's be bolder." 
Every day brings us new evidence of the vitality, 
the f arflung operations, and the current danger of 
the Communist conspiracy in the United States. 

We believe that the travel abroad and the pos- 
session of a valid American passport by hard- 
core American Communists constitute a real dan- 
ger to our country. This is so because all the 
evidence about Communist organization and 

methods shows that the effective functioning of 
the international party machinery depends in 
large part on the freedom of its members to 

One does not have to be a student of Commu- 
nist organization to realize the truth of this. 
Think of your own organizations. Everyone in 
business today travels almost constantly. You all 
know that personal contact is an essential part of 
doing business. The mails, even the telephone, 
are not an adequate substitute. If this is true of 
normal business operations, how much more true 
must it be of the enormously complex worldwide 
operation of an international conspiracy where 
virtually everything must also be kept secret. I 
do not know how one would go about recruiting 
an espionage agent by mail or by telephone. I 
doubt if the Communists know either. Such 
things require personal assessment, pei'sonal re- 
cruitment, personal contact. In an organization 
of this sort, to hamper the movements of any 
members of the organization is a crippling blow 
and puts the operations of the organization under 
a most heavy handicap. 

Another thing that is important to understand 
is that the size and complexity of this Coimnunist 
organization require a very great variety of 
ordei*s and instructions and information and ac- 
tivities to keep it operating. It has top people 
in it, and it has little people. It isn't only the 
top people who are important. Each of the little 
people in this highly disciplined machine is a cog 
who has his own place and his own usefulness 
to the functioning of the whole machine. A 
relatively unimportant but reliable member of the 
conspiracy may act as a courier to carry an im- 
portant message between Communist leaders in 
different cotmtries. The whole elaborate organi- 
zation which has surrounded every Communist es- 
pionage network which we know about in this 
country, such as in the Eosenberg case, has 
demonstrated conclusively the essential role 
played by the numerous "unimportant" little 
people in the organization, without whom it 
would cease to function. 

We are by no means helpless against this con- 
spiracy, nor has our Government been inactive or 
unsuccessful in fighting back. Much of the suc- 
cess we have had is attributable directly to the 
dedicated fight over many years and many ob- 
stacles which has been carried on personally by 


Department of State Bulletin 

Mr. J. Edgar Hoover and by the FBI. Their 
persistence and their results have inspired others 
who work in this field and have done much to 
awaken the American people to a clear and pres- 
ent danger. 

Our weapons against Communist subversion 
have been a closely interlinked set of techniques. 
They have included penetration of the conspiracy 
and constant surveillance and, always, to the ex- 
tent we could achieve it by passport and visa and 
immigration regulations, the denial of free move- 
ment in and out of the country and thereby of 
easy and satisfactory communications. 

The loss of our ability to stop American mem- 
bers of the Communist apparatus from getting 
passports has blunted the other weapons we have 
against the Conmiunist conspiracy. For example, 
our success in preventing the entry of foreign 
Communist agents and couriers with their financ- 
ing and instructions from headquarters becomes 
rather hollow if American members of the ap- 
paratus can travel freely out of the country. 
Similarly, the most successful penetration of the 
domestic Communist apparatus by agents of the 
United States is rendered much less useful if tlie 
persons watched can evade observation for ex- 
tended periods by traveling abroad, probably be- 
hind the Iron Curtain, where we can hardly ex- 
pect to know what they are doing. 

I liave sometimes been asked whether *here is 
really any point in denying passports to Ameri- 
can Communists, for after all they can travel 
legally to Latin America without a passport and 
from there usually can obtain illegal passage to 
wherever they wish to go. This is undeniably 
true. However, it is also a fact that, in the years 
during which we denied passports to Communists, 
very few important members of the apparatus 
took advantage of this roundabout route. One 
reason may be that, whenever you require an or- 
ganization to utilize cumbersome and devious and 
illegal methods of this sort, you stretch that much 
farther and that much thinner the trail which 
the conspirators cannot fail to leave. They must 
utilize more people with more risk of some break- 
down in the system and compromise of its secrecy. 
It is that much more likely that somewhere along 
the trail those whose job it is to counter the Com- 
munist conspiracy will uncover it. Undoubtedly 
one of the greatest protections we have against 
the conspiracy is knowledge of what is taking 

place within it. Whenever such a trail can be 
micovered at any point, it can usually be un- 
raveled faii'ly easily in both directions, with the 
result of a considerable increase of our knowledge 
about the whole conspiracy. 

Communist Interest in Passports 

Our own Government has long recognized how 
important American passports are to the Com- 
munist conspiracy. Forty years ago, just after 
the Bolshevik revolution, the Department of State 
became aware that American Communists were 
carrying on espionage, propaganda, and revolu- 
tionary activities for the Soviet Government and 
the international Communist movement. The 
State Department decided in 1920 that passports 
should be refused to persons who advocated the 
overthrow of govermnents by force, who es- 
poused publicly the Soviet cause, or were carriers 
of Communist coiTespondence. This policy re- 
mained in force imtil 1931. At no time, I might 
point out, during this 11 years was the Secretary's 
discretion in the matter ever challenged in the 

The American passport has always been valu- 
able to espionage rings, as you can well imagine. 
For example, prior to World War II an espionage 
agent was arrested in Copenhagen and found to 
have four U.S. passports in his possession. The 
Communist underground has long maintained 
workshops devoted to the wholesale forgery and 
falsification of passports and other documents. 

However, genuine American passports were 
highly prized at intelligence headquarters in Mos- 
cow, according to a former chief of Soviet intel- 
ligence in Europe. During the Spanish Civil 
War, Communist leaders assiduously collected the 
passports of the several thousand Americans in 
the International Bi'igade, and the bulk of these 
passports eventually found their way to Moscow 
for alteration and possible use by Soviet agents. 
In fact, so many American passports were col- 
lected from this source that, as a countermeasure, 
the U.S. had to replace every outstanding pass- 
port in the world with a new document. 

Congress Acts 

In 1949, 11 members of the National Board of 
the Communist Party, U.S.A., were convicted of 
conspiring to advocate the overthrow of the U.S. 

April 13, 7959 


Government by force or violence. In 1950 Ameri- 
can Communists were actively supporting the 
enemy position in the Korean war. Congress, 
recognizing these dangers, passed the Internal 
Security Act and f omid that : 

. . . travel of Communist members, representatives, 
and agents from country to country facilitates communi- 
cation and is a prerequisite for the carrying on of ac- 
tivities to further the purposes of the Communist move- 

Congress also said that Americans who participate 
knowingly in the world Communist movement, 

... in effect repudiate their allegiance to the United 
States, and in effect transfer their allegiance to the 
foreign country in which is vested the direction and con- 
trol of the world Communist movement. 

Yet allegiance is the touchstone of the right to a 

Indeed, tlie Internal Security Act of 1950 made 
it a crime to issue passports to members of reg- 
istered Communist organizations, but this sanc- 
tion still has no legal effect because protracted 
litigation in the courts has been able to prevent 
that part of the act from becoming applicable. 

Again, in 1954, Congress made its intention 
clear when it declared that the Communist Party 
of the United States, 

. . . although purportedly a political party, is in fact 
an Instrumentality of a conspiracy to overthrow the 
Government of the United States. 

Congress further found that the role of the Com- 
mimist Party, U.S.A., as the agency of a hostile 
foreign power renders its existence a "clear, pres- 
ent and continuing danger to the security of the 
United States." 

The Department's Regulations 

The Secretai-y of State, cliarged by law witli tlie 
issuing of passports, could hardly have ignored 
these congressional findings. In 1952 the Depart- 
ment's policy was made a matter of official record 
when Secretary Acheson issued regulations estab- 
lishing the criteria for refusing passports to Com- 
munists and Communist supporters.* 

The publication of these regulations triggered a 
violent attack by the Communists through their 
press and through the courts, utilizing every de- 
vice of law and procedure. Their clever campaign 

* For a Department statement of May 24, 1952, see Btrr,- 
LETiN of June 9, 1952, p. 919. 

gained respectability because many sincere per- 
sons who have no sympathy whatever with com- 
munism became disturbed by the argument that 
the regulations permitted the Secretary of State 
arbitrarily to restrict a citizen's rights. These 
were the regulations which in 1958 the Supreme 
Court struck down by finding that they had not 
been specifically authorized by Congress. 

I think it might be well to put into perspective 
exactly how these regulations operated and their 
practical effects by giving you some statistics on 
the numbers of Communist supporters refused 
passports under them and the numbers of Amer- 
icans who received passports. For the 2 calendar 
years preceding the Supreme Court's decision, 
1956 and 1957, 1,145,000 passports were issued or 
renewed. During that same period the Passport 
Office limited the passport privilege of 51 persons 
because of Communist grounds. Every one of 
tliose persons had access to an elaborate and im- 
partial appeal mechanism, and many of them uti- 
lized it. From the time this mechanism was set 
up in 1952 until the Supreme Court's decision in 
June 1958, the Secretary of State — and it must be 
the Secretary personally — refused passports to 
only 15 persons on Communist groimds after full 
hearings. A ntunber were granted passports after 
hearings; some others, of course, did not contest 
the Passport Office's denial, and undoubtedly 
many active Commimists never bothered to apply 
at all, knowing they would be scrutinized and re- 
quired to make a sworn statement about Com- 
munist Party membership. 

I believe it is important to remember these 
figures when statements are made about the "arbi- 
trary" action of the Department in passport mat- 
ters. I assure you that these 15 persons who were 
denied passports by the Secretary did not include 
a single one who was an ordinary American citi- 
zen or whose only activity in behalf of the Com- 
munist movement was some vague alleged "beliefs 
and associations." 

History of Passports 

American passports, of coxrrse, are valuable 
documents and well worth all this trouble that the 
Communists have gone through to get them. Our 
passport requests foreign governments to let the 
bearer, an American citizen, pass safely and 
freely and to give him all lawful aid and protec- 
tion. It invokes for him the full prestige of the 


Department of State Bulletin 

United States Government, and foreign govern- 
ments usually accept it as meaning that he is a 
reputable person. 

The passport has also become a practical neces- 
sity for travel. Today 75 percent of all countries, 
including most of Latin America, require foreign- 
ers, including Americans, to liave passports for 
entry ; and we ourselves require Americans to ob- 
tain passports for travel outside the Western Hem- 
isphere because we are still in a state of national 

We have made it easy, however, to meet this re- 
quirement. We issue nearly three-quarters of a 
million passports each year, each one valid for a 
maximum of 4 yeare. We refuse only an infini- 
tesimal number. 

Much of the meaning of even the very few but 
very important refusals became academic, of 
course, in June 1958, when the Supreme Court's 
ruling was handed down. Since then, as we antici- 
pated, there has been a flood of applications from 
persons with records of Communist affiliations or 
activities. Some of them had previously been de- 
nied passports, but many had never previously ap- 
plied. Many we Icnow a great deal about, and none 
of it is good. Others we would like to know more 
about, but the Department of State is no longer in 
a position even to inquire, much less investigate, 
whether any such applicant is a Communist Party 
member or how dangerous he may be. There is 
quite a difference, for example, between a known 
courier and a harmless fellow traveler. 

This flood of applications continues today. The 
Communists are getting passports while they can. 
Naturally, in all these cases the Department's pre- 
vious policy has had to give way and passports 
have been and are being issued to all these people. 

Legislation Required 

Immediately following the Supreme Court de- 
cision. Secretary Dulles sent Congress a draft 
bill to provide the specific legislative authority 
which the Court held was lacking. He wrote to 
the Congi'ess:^ 

I think there can be no doubt in anyone's mind that 
we are today engaged for survival in a bitter struggle 
against the International Communist Movement. . . . 

° For text of the Secretary's letter, together with a 
message from the President to the Congress and a state- 
ment by Deputy Under Secretary Murphy on the subject 
of passport legislation, see ibid., Aug. 11, 1958, p. 250. 

April 13, J 959 

501485 — 59 3 

[This] Movement seeks everywhere to thwart United 
States foreign policy. It seeks on every front to in- 
fluence foreign governments and peoples against the 
United States and eventually by every means, including 
violence, to encircle the United States and subordinate 
us to its will. The issuance of United States passports 
to supijorters of that Movement facilitates their travel 
to and in foreign countries. It clothes them when abroad 
with all the dignity and protection that our Government 
jiffords. Surely, our Government should be in a position 
to deny passports to such persons. 

President Eisenhower urgently endorsed the 
legislation, saying: "Bach day and week that 
passes without it exposes us to great danger." 

What must such legislation do ? 

Again, the President has expressed it well. He 

In exercising these necessary limitations on the is- 
suance of passports, the executive branch is greatly con- 
cerned with seeing to it that the inherent rights of 
American citizens are preserved. Any limitations on the 
right to travel can only be tolerated in terms of over- 
riding requirements of our national security, and must be 
subject to substantive and procedural guaranties. 

Simply stated, what we need is legislative au- 
thority which will allow the Secretary of State 
to deny passports to hard-core supporters of the 
international Commimist movement. We believe 
such denial should occur under due process of 
law, including judicial review. We believe that 
it should apply only to those who knowingly en- 
gage in activities — not merely hold beliefs or have 
associations — but engage in activities in further- 
ance of the international Communist movement 
or who are going abroad to engage in such ac- 

We do not seek statutory passport authority 
to stifle criticism of this Government or its poli- 
cies. We do not believe that the passport should 
or can be used to restrict the movement of people 
who hold political, social, or economic opinions 
which are not of the orthodox American variety. 

We do not seek or want authority to deny pass- 
ports to any whose travel or activity abroad is 
merely an embarrassment to our country. I be- 
lieve that the United States is strong enough to 
survive embarrassment if we must. 

Neither do we wish to penalize loyal Ameri- 
cans who at one time, before the nature of the 
Communist conspiracy became as crystal clear as 
it is today, may have sympathized with Com- 
munist theories or even belonged to Communist 
organizations in this country. 


All we seek, and what I feel we must have, is 
the capacity to protect ourselves by denying pass- 
ports to those relatively few hard-core, active 
Communist supporters who are not ordinary 
American citizens and whose travel abroad con- 
stitutes a danger to the United States. 

Much has been said concerning the constitu- 
tionally protected "right to travel" of an Ameri- 
can citizen. Communist or not. I believe we 
should understand such terms thoroughly, for they 
are central to this issue. 

Our Constitution can and does guarantee the 
citizen's freedom to travel among the 50 States 
in the Union. However, it obviously does not 
and cannot guarantee any right of an American 
citizen to enter any foreign country. We do not 
recognize the right of any alien to enter our own 
country except as we, as an act of sovereignty, 
grant him permission to do so. 

An excellent example of a foreign regime exer- 
cising sovereignty in this way is the Chinese Com- 
munists. For nearly 2 years now, some 25 Ameri- 
can newsmen representing the major foreign 
newsgathering organizations of this country have 
had and still have American passports valid for 
travel to Communist China, but that regime has 
refused to let them enter. 

The constitutionally protected "right to travel" 
abroad, therefore, is really only the right to leave 
the United States, and I certainly agree that this 
right is part of the liberty of which the citizen 
cannot be deprived without the due process of law 
of the fifth amendment. However, like any other 
constitutional right, it is not absolute and may 
be abridged by society for good and sufficient rea- 
sons involving its own protection so long as due 
process is observed. 

In the case of passports "due process" means 
that the Secretary of State cannot be arbitrary or 
capricious but must have soimd reasons for re- 
stricting an individual's right of exit. It means 
that he must tell the individual the reasons for 
his action in sufficient detail and under such cir- 
cumstances that the individual may have an op- 
portunity to show the reasons untrue. Such cir- 
cumstances should include a full hearing and re- 
view within the Department of State and ulti- 
mately, of course, the right which now exists to 
appeal to the courts. 

It is interesting to note in this connection that 
even such citadels of democracy and individual 

rights as the United Kingdom, France, and Can- 
ada do not provide for any judicial review of 
passport denials. In those and other free coun- 
tries passport denials are matters strictly within 
the jurisdiction of the executive branch, from 
whose decision there is no appeal. 

There is one other essential of passport legisla- 
tion which is much misimderstood, and that is the 
necessity for the Government to be able to utilize 
confidential information as part of the basis of its 

I can say bluntly that any legislation concern- 
ing denial of passports to Communist supporters 
would be meaningless and would not achieve any 
purpose if it prohibited the Government from 
utilizing confidential information. Almost with- 
out exception, dangerous cases in the Communist 
area involve confidential information and investi- 
gative sources. Indeed, the more recent and 
meaningful our information is, the more likely 
it is that it has come from current confidential 
investigative sources within the Communist 

The Government has a legitimate and overrid- 
ing interest in maintaining the security of these 
investigative sources and methods. If faced with 
the unpalatable choice between exposing and there- 
by destroying a valuable and continuing source of 
information about the activities of the Communist 
conspiracy and issuing a passport to an individual 
member of that conspiracy, the Government has no 
alternative but reluctantly to issue the passport as 
the lesser evil. 

Some people feel that the use of confidential in- 
formation in such cases means using vague and un- 
substantial gossip or allegation that will not stand 
the light of day. This is nonsense. In the first 
place, if one is prepared to believe that the Secre- 
tary of State, who must personally decide passport 
appeals cases, would actually base a considered 
decision upon anything less than substantial and 
corroborated evidence, then one must believe that 
our country's security is in far greater danger than 
from the capricious denial of passports. In the 
second place, confidential information is almost 
always a small part of any total case, although 
usually essential because of the clear proof it pro- 
vides. ]Most of evei-y case can be fully and pub- 
licly disclosed. 

Beyond this, however, we believe, based on a 
careful review of the Communist cases we have 


Department of Sfafe Bulletin 

had in the past, that in every case the Govern- 
ment can provide a fair summary of even the 
confidential information, both to the applicant and 
to the courts. Such a fair summary would in- 
clude all the pertinent reasons for which the pass- 
port is denied and would exclude only those 
details required to jarotect confidential sources of 

I would have no objection to any legislation re- 
quiring the Government in all cases to provide 
such a fair summary of the content of any confi- 
dential information relied upon. 

The Clear and Present Danger 

One other thing should be clear. What we are 
talking about is not a criminal proceeding in 
which someone is being tried or punished for past 
actions but an administrative process which at- 
tempts to predict someone's future course of ac- 
tion, if he travels abroad, and to balance its po- 
tential danger to the United States against the 
desirability of facilitating the travel and giving 
him protection while he is performing it. These 
are services which the Government should extend 
to its citizens, but they are not inviolable rights 
which the individual can demand no matter what 
the menace to society may be. 

Even having said this, however, much about 
this subject remains repugnant to Americans. 
The use of "confidential information" in any kind 
of proceeding, judicial or not — indeed, any sort 
of governmental restriction, whether on travel or 
passports or any other activity of the individual — 
these are things which we will never like and 
which, I hope, we never accept apathetically. 

Here, however, I believe, we must face squarely 
one fact which is inherent in every aspect of this 
matter which we have been discussing today. 
That is, simply stated, that our Nation, although 
not technically at war, assuredly is not at peace. 
We face, almost on a daily basis, actual threats 
to our national security and to our very existence 
which very clearly are the equal of any threats 
we have ever faced in peace or war. One need 
only think of the implications of Berlin today or 
the countless crises of the past decade to realize 
that the "cold war" is a contradiction in terms. 

This uneasy situation of "not peace, not war" 
is something entirely new to our experience. It 
places a tremendous strain upon our governmental 
and constitutional institutions, for it blurs lines 

which had always previously been considered 
sharp and clear. 

It used to be that when our Nation was not at 
war it was truly at peace. Certain rules obtained 
and governed our lives in peacetime. These rules 
were evolved over a century and a half by and 
for a free people who since the earliest days of 
their history had been faced by no serious ex- 
ternal threat to their freedom or their national 
existence. Occasionally war came, and there was 
a clear line of demarcation. War was declared 
and waged with certain formalities. During war- 
time certain special rules obtained because the Na- 
tion temporarily required the subordination of 
individual desires to the overall national effort. 
These special rules, while repugnant, were con- 
sidered tolerable for the limited duration of the 
war. When the war was over, other prescribed 
formalities occurred; the Nation was at peace 
again, and the special wartime rules, which were 
usually incompatible with complete constitutional 
freedom, were dropped. 

This sharp demarcation between peace and war 
does not exist today. International communism 
has thrown away the rule book. It does not con- 
sider itself ever at peace. It is always totally 
mobilized to advance its aim of world domination. 
It does not recognize any of the accepted rules of 
international or legal or human conduct except 
when, and only for as long as, those rules may 
suit its purpose. 

This situation creates an unprecedented threat 
both to our liberty and to our very existence. Our 
response must include a recognition of these 
changed circumstances or risk the loss of existence 
and liberty together. 

The threat, moreover, will continue to exist, 
perhaps for many years in the future. This 
makes it imperative that whatever response we do 
adopt must be one that we can indefinitely sus- 
tain and without endangering the strength or the 
integrity of our basic and cherished institutions 
which we are seeking to protect. 

I believe that such a response is possible to a 
free people. I believe that our institutions — our 
Constitution, our laws, and our form of govern- 
ment — are strong enough and flexible enough to 
adjust to these changed circumstances, just as 
they have adjusted to many changes in the past. 

I have tried to illustrate what I mean by sug- 
gesting, in the limited but important field of pass- 
port policy, a procedure which meets these cri- 

kptW 13, 7959 


teria. It meets, I believe, the most pressing re- 
quirements of national security. It does so by law 
and under the Constitution. I think, for the rea- 
sons I have given, that adequate passport legisla- 
tion is essential to our security. But let me be 
vei7 clear. I do not believe that this piece of 
legislation will eliminate all the dangers which 
we face from the Communist conspiracy or even 
all of those which it is intended to counter. 

I do believe that adequate passport legislation 
is a necessary and integral part of the screen of 

weapons we have raised against the conspiracy 
and that it will seriously cripple the effectiveness 
of that conspiracy. 

I do believe, finally, that all our weapons to- 
gether, wisely and effectively used, will contain 
the internal menace of the Communist conspiracy 
within tolerable limits while our military 
strength deters its worldwide menace and our for- 
eign policy seeks to replace its threat with a just 
and durable peace. 

The Role off Labor in African Development 

hy Joseph C. Satterthwaite 

Assistant Secretai^ for African Affairs ' 

It is a real pleasure to have this opportunity 
to meet with representatives of the American 
labor press and to note the interest that you have 
displayed in a very important topic ; namely, that 
of African development and the role of labor in 
that development. 

Before I launch into my subject, however, a 
few notes of general background are in order, 
for one cannot discuss any aspect of modern 
Africa without some basic understanding of the 
diverse nature of the continent and its peoples. 

Visitors to the United States ai'e often over- 
whelmed by its size and the complexity of its 
society, and they leave after a few weeks or even 
months with a feeling that they have had no more 
than a passing contact. It is equally and possibly 
more difficult for us at this distance to gain an 
understanding of Africa, with its 200 million in- 
habitants speaking over 700 languages and repre- 
senting all stages of development, from the most 
primitive to the most modern. 

Geographically, Africa is huge, almost four 
times the size of the United States. The continent 
has a north-south extension of 5,000 miles, and 
the east-west distance is 4,600 miles. By com- 
parison the United States extends 2,800 miles 

' Address made before the Eastern Labor Press Con- 
ference at New York, N.Y., on Mar. 20 ( press 206) . 

from east to west, and from the southernmost tip 
of Texas to the Canadian border it is only 1,600 

Nor can one speak of Africa as a homogeneous 
whole. Politically, for example, it has more than 
twoscore different entities, including 10 inde- 
pendent states, 6 United Nations trust territories, 
and the numerous dependent territories of Great 
Britain, France, Belgium, Portugal, and Spain. 
For general purposes of understanding, therefore, 
it is useful to think of there being at least three 
Africas — although geographers, social scientists, 
and ethnologists would widely differ on this defi- 
nition. These three Africas could be described 
as: (1) North Africa — including the Muslim 
Arab- Berber North Africa of the Mediterranean 
littoral and extending, for our purposes, over to 
the horn of Africa, which includes Christian 
Ethiopia and the Muslim peoples of the various 
Somali lands; (2) the multiracial areas of East, 
Central, and South Africa — the area where white, 
Asian, and African are settled side by side; and 
(3) the predominantly Negroid areas of West 
Africa, where the white man is present as a tech- 
nician, trader, administrator, missionary, or 
teacher, but not as a permanent settler. 

Of the population of Africa, estimated roughly 
at 220 million, some 6 million are European or of 
European origin, principally concentrated in Al- 


Department of State Bulletin 

geria and East, Central, and South Africa, and 
750,000 are Asians, mainly Indians, living largely 
in East and South Africa. 

Religiously, 80 million or more Africans, in- 
cluding Arab, Negroid, and mixtures of races, are 
Muslim, mainly concentrated in the North, Sa- 
hara, and East coastal regions, and about 20 mil- 
lion are Christians, spread tliroughout Ethiopia 
and the sub-Sahara area. The majority of sub- 
Sahara Africans, however, are still pagan or 

As a final note of general introduction, sub-Sa- 
hara Africa is not the lush rain-forest area of 
popular imagination. With the exception of the 
Gulf of Guinea and the Congo regions, much of 
sub-Sahara African lands are arid and lack of 
water is an acute problem in vast regions, some 
of which have heavy rainfall concentrated only 
in brief periods. 

Status of African Development 

Although the continent is rich in natural re- 
sources, economic development is proceeding so 
slowly that Africa dropped from 2.3 percent of 
the world's income in 1938 to 2 percent in 1949. 
In that same period the United States jumped 
from 26 percent to 41 percent of the world's in- 
come, and later repoi'ts indicate that the gap be- 
tween the two is becoming even greater. 

Newly independent states are appearing in 
rapid succession, and while the position of the 
United States Government on this development 
is well known I should like to restate it here, in 
the words of Secretary Dulles at Cleveland last 
November : ^ 

The United States supports political independence for 
all peoples who desire it and are able to undertake its 
responsibilities. We have encouraged and we rejoice at 
the current evolution. 

We must, however, recognize that under present condi- 
tions newly created nations face a formidable task. . . . 
There is great danger that newly granted independence 
may turn out to be but a brief interlude between the rule 
of colonialism and the harsh dictatorship of international 

The fact of that risk must not, however, lead us to 
abandon our basic faith in the right and capacity of 
peoples to govern themselves. What is needed is to re- 
inforce that faith with a resolve to help the new nations 
to solve their problems in freedom and thus to preserve 
their newly found independence. 

' Bulletin of Dec. 8, 1958, p. 897. 
April 13, 7959 

African economic development has not kept 
pace with political changes, and this provides us 
with some sidelights on the African personality. 
Whether or not they are fully aware of the dan- 
gers as well as the responsibilities of independ- 
ence, Africans today feel a great need for dignity 
and equality, are rebelling against inferior status 
and treatment, and are seeking self-determination. 

Role of Labor in Africa 

When we consider the role of labor in the devel- 
opment of Africa, we should be aware of these 
psychological and emotional elements in the char- 
acter of the African worker. Wage rates for 
African workers, for example, are substantially 
lower than for other workers in the same estab- 
lishments and the rate for the job agitation repre- 
sents more than a demand for additional pay, as 
important as that may be. It represents a striv- 
ing for status and an effort to remove a stigma. 

iluch has been said about the dominant role of 
labor in African independence movements and the 
basic importance of mature and responsible labor 
unions in the development of stable regi)nes. It 
is important to recognize, however, that in order 
to maintain itself a labor union must do some- 
thing for its members and must do so continually. 
It may well be that the most difficult problem of 
the unions in all underdeveloped countries is pre- 
cisely how to produce benefits and improvements 
for the membership in economic situations where 
there is stagnation or where development is so 
slow that pressure for higher wages and steadily 
improved conditions can lead only to grave distor- 
tions in the economies. Union restraint in such 
situations often leads to internal dissatisfaction 
and invites attack from those who have the doubly 
evil purpose of subverting the unions and creating 
general instability. 

It is apparent that the only real answer to this 
dilemma is as rapid an economic development as 
these societies can absorb and that the greatest 
contribution that can be made from the outside to 
the growth of responsible and democratic unions 
in Africa is that of economic and technical assist- 
ance. Developing economies mean more and bet- 
ter jobs, and with such development the labor 
movement can do much for its members and retain 
their loyalty and support. 

Wliatever the rate of economic development, 


there will be constant need of labor statesmanship 
in gearing the demands of labor to the strength 
and vitality of the economy in general and of the 
individual enterprise in particular. And an 
equal amoimt of statesmanship must be displayed 
by employers and especially by governments in 
the promulgation and administration of the labor 
laws that become necessary for the regulation of 
labor market relationships. 

Basis for Trade Unionism 

It may be well to pause at this point for a brief 
examination of the basis for trade unionism in 
Africa. I have noted that we are confronted 
with more than one Africa, and, in view of the 
extremely mieven development, it would be mis- 
leading to use an overall figure on wage earners, 
even if such a figure were available. In the 
United States we know that in a population of 175 
million there are almost 51 million wage earners, 
including those in agriculture. In other words, 
about 29 percent of our entire population is in the 
wage-earning group. What are the figures for 
Africa, in parts of which the population has yet 
to learn about money wages? 

In its Directory of Labor Organizations in 
Africa, issued last year, the United States Depart- 
ment of Labor was able to supply comparable fig- 
ures on wage earners in only 13 of the 40 African 
countries and territories listed. Even in some of 
these th& only information available is 5 or 6 
years old. According to these figures, less than 10 
percent of the population in vast areas of the 
continent can be listed as wage earners, some areas 
showing as little as 2 and 3 percent. 

These few workers, most still in the process of 
learning how to read and write and to work for 
money wages, may not present themselves as a 
likely field for trade union organizing activity. 
Trade union membership claims are highly unre- 
liable in a situation of tliis kind, but the Depart- 
ment of Labor Directory reports an overall mem- 
bersliip of about 3 million, about half of them in 
affiliates of the International Confederation of 
Free Trade Unions (ICFTU). In view of the 
known difficulty in collecting dues and maintain- 
ing membership records, there is no way of know- 
ing how many would be classed as union members 
by American standards. This is not to say that 
these claimed membei-s could not be counted on, 

together with many others, to follow union 

Wage demands are based not only on the stated 
needs of the workers but on such considerations as 
increasing productivity and on the argument that 
higher wages generate the buying power that is 
essential to the health of the economy. It is well 
known that established unions in Europe and the 
United States employ experts who lay the basis 
for wage demands by exhaustive study of statis- 
tical and other information, often supplied by 
goverimients, and thus produce the most effective 
demands possible. Consider the situation of a 
young African union — and most of them are very 
young — without experts of this kind, with inex- 
perienced leaders, and with no basic data. Mem- 
bership dissatisfaction with wages and working 
conditions too often combines with other feelings 
of frustration to produce situations that may erupt 
into spontaneous strikes that only create greater 

Training for Labor Leadersliip 

It becomes apparent that training for labor 
leadership should have a high priority in pro- 
grams for African development. A number of 
trade union leaders and government officials con- 
cerned with labor affairs have been brought to the 
United States by the International Cooperation 
Administration and the Department of State to 
study practices here. Two such teams of five men 
each are expected from Ghana within the next few 

In the case of trainees from Africa it is neces- 
sary to guard against the likelihood of personal 
experiences that may adversely affect the value of 
the training itself. We must recognize that, al- 
though we may be fully aware of the progress we 
are making in the area of race relations in the 
United States, the African visitor will judge us 
entirely on his own experiences here. 

It is in this field that we can render intangible 
but real and lasting aid to the new African states. 
We help ourselves and our friends in Africa by 
recording steady progress toward the solution of 
our own problems in the field of race relations. 
The press, including the labor press, is in a unique 
position to further this effort in its normal func- 
tion of influencing public opinion. It is well for 
the American public to be kept constantly aware 


Department of State Bulletin 

of the effects abroad of our daily experience in this 
important area of human relations. Our actions 
speak more loudly than do our official pronoiuice- 
ments, and they provide the basis on which others, 
and especially Africans, judge our actions in ap- 
parently unrelated fields. 

Whether the training for trade union leader- 
ship is carried on at home or abroad, it is obvious 
that it should be adapted to the specific needs of 
the trainees. In the case of those visiting the 
United States, special emphasis must be placed on 
training activity that is adapted to conditions in 
the trainee's own field of activity at home. The 
ICFTU, which numbers among its affiliates the 
AFL-CIO and the United Mine "Workers of 
America, has taken trainees abroad and has now 
made a notable beginning on training in Africa 
with the establislmient of its Labor College at 
Kampala in Uganda. The college has an inter- 
national staff, including an American. Thirty- 
two trainees from 12 countries and territories have 
just concluded the first 4-month course. The 
ICFTU hopes eventually to staff this school en- 
tirely with Africans, using men who have had 
foreign travel and study as well as study and trade 
union experience in Africa. 

African development also calls for vastly ex- 
panded programs of technical training, much of 
it geared to the needs of workers coming from 
primitive tribal life and adjusting to the discipline 
of industrial activity and urban living. Reports 
of "target employment" — working only long 
enough to buy some desired article — serve to point 
up the complexity of this problem. Employers in 
highly developed countries with already urbanized 
workers are frequently plagued by high labor 
turnover, and it is not to be wondered at that it 
should be a problem in Africa. It is not enough 
to deplore the practice of target employment as 
the whimsical behavior of the African worker. 
It should be pointed out that in the absence of any 
specific target, such as a watch or a bicycle, he 
might not have come in the first place. On the 
other hand, the American or European worker 
generally has broader and more long-term goals, 
such as education for his children and security 
against unemployment and in his old age. Tribal 
life does not involve formal education, and the 
tribe takes care of all its members. As a matter 
of fact, unemployed Africans are frequently re- 
turned to their home communities because it is 

known that they will at least have food and shelter 

Our concern here, however, is with the problem 
of holding workers and increasing their produc- 
tivity through training and experience. Many 
employers and missionaries have solved one of the 
underlying problems by encouraging the men to 
bring their families with them and by maintaining 
community programs, including training in home 
arts for the wives and mothers. 

With appropriate incentives and training, 
Africans are demonstrating their ability to adjust 
to the requirements of modern industry and to 
achieve a high degree of proficiency. Two years 
ago a Belgian worker at a smelter in the Belgian 
Congo would be called on in a situation requiring 
"problem solving" and supervisors believed this 
woidd always be the practice. Today in a similar 
situation a Congolese worker may be called on to 
solve the problem. 

In January of this year, the International Labor 
Organization established its first field office in 
Africa, at Lagos in Nigeria. One of the functions 
of this office is to supervise an expanding program 
in the field of technical training. The ILO has 
just decided to hold its first African regional con- 
ference in 1960, and this should do much to stimu- 
late the technical training program and bring to 
the attention of the entire continent the numerous 
other services of the ILO. 

International Labor Organizations in Africa 

I have mentioned the ICFTU Labor College at 
Kampala, and I should like to comment further on 
international labor and the development of Africa. 
Wlien the ICFTU was founded in 1949 it had 
affiliates in three African countries. Today it has 
affiliates in 20 African countries and territories 
with a reported total membership of about 1% 
million and hopes to establish soon a separate 
African regional organization, similar to its re- 
gional organizations for Europe, Asia, and the 

As a prelude to the regional organization, sub- 
regional committees are being established. The 
first of these, the committee for East, Central, and 
Southern Africa, is now functioning under the 
chairmanship of Tom Mboya, General Secretary 
of the Kenya Federation of Labor. The commit- 
tee has its headquarters at Nairobi. Yesterday 
[March 19] the ICFTU concluded its World Eco- 

April 13, 1959 


nomic Conference of Free Trade Unions at Ge- 
neva, one of its purposes being the stimulation of 
increased aid to the developing areas of the world. 
I understand that officers and economists of the 
AFL-CIO took part in the conference, and I as- 
sume it will be repoited and commented on in the 
labor press here. 

Three other international labor organizations 
are interested in Africa: the International Fed- 
eration of Christian Trade Unions, largely in 
French-language areas of sub-Sahara Africa; 
the International Confederation of Arab Trade 
Unions, confined to parts of Arab Africa; 
and the Commimist World Federation of Trade 
Unions (AVFTU). The WFTU claimed African 
affiliates with a total membership of 77,000 at the 
end of 1957. Competent observers gave them only 
24,000 at that time and state that the number is 
even less now. 

The Communists do not appear to be embar- 
rassed by the scarcity of official WFTU affiliations 
in Africa and are busily promoting local "united 
front" activities and even international groupings 
including free trade unions. An example of this 
is the continuing drive for an Afro-Asian group- 
ing of unions, without respect to present affilia- 
tions. It is clear that the ultimate purpose is to 
bring African and Asian labor under Communist 
influence and direction. 

It is well known that, while free trade unions 
have difficulty in collecting dues from their finan- 
cially limited members and are handicapped by 
a lack of full-time organizers, the Communists, 
who make no pretense of collecting dues, often 
have adequately staifed operations. An important 
part of their activity is the recruitment of workers 
for trips to the Soviet-bloc countries, and while 
there are no figures available it is safe to say that 
hundreds of Africans make these trips every year. 
Under active Soviet Russian guidance, the Com- 
munists are also making a special jioint of identi- 
fying themselves with African independence 
movements. This is especially important in view 
of the part played by African labor in these move- 

As Secretary Dulles stated in his Cleveland 
speech, the newly created nations "are marked out 
by international communism as special prey. It 
is classic Communist doctrine, enunciated by 
Lenin, that communism should initially stimulate 
'nationalism' in order to break the ties between 

colonized areas and the colonial powers. Then 
communism should move in to 'amalgamate' the 
newly independent peoples into the Communist 
bloc." We anticipate a continuing increase in this 
type of activity, and it has special pertinence for 
African labor luiions closely identified with po- 
litical parties. 

Labor's Political Role 

In parts of Africa overall illiteracy still ap- 
proaches 90 to 95 percent; consequently educated 
Africans are readily projected mto positions of 
power and influence. As I have indicated, we 
find many of them with their unions in the fore- 
front of independence movements. They may also 
engage in political activity for the purpose of 
securing laws and regulations on guaranteemg 
freedom of association or basic trade union rights. 
In situations where these rights are already as- 
sured they may find political and legislative action 
more effective than trade union activity for the 
purpose of raising labor standards. As a matter 
of fact, the legislative route is often followed in 
the United States in areas where trade imionism 
is weak. With the Africans, however, there are 
additional reasons for the greater emphasis on 
political activity. The nature of their following 
is one explanation, and another is their own lack 
of training and experience in trade union activity. 
Again we see the need for expanded programs in 
the field of training for trade union leadership. 


I should like to conclude by returning to a point 
I touched on earlier. I referred to the need of 
statesmanship on all sides in handling problems 
of economic development, and this raises a ques- 
tion on which there is some disagreement. There 
are those who say that, in vast areas of sub-Sahara 
Africa, health and well-being are more urgently 
needed than investment capital. They maintain 
that, in spite of technical training and education, 
labor productivity will remain low because of the 
lethargy resulting from the combined impact of 
disease, malnutrition, heat, and humidity. The 
amount of food may be adequate but it is habitual- 
ly lacking in proteins, and these experts advocate 
an increase in the amount of developmental cap- 
ital devoted to an improvement of the food supply. 
Others maintain that primary emphasis should be 
placed on capital investment in heavy industry, 


Department of State Bulletin 

leaving the standard of living at its present low 
level for some time. According to this argument, 
capital invested in heavy industry creates maxi- 
mum employment opportunities and gives the 
largest return in the shortest time to the communi- 
ty as a whole. I suppose a great deal of support 
can be found among honest and able men on both 
sides of this argument, and it is not my purpose 
to get into it here. I bring it up only because of 
the implications it has for the subject we are dis- 

It should be pointed out that the argument has 
to do with human beings and that, with the ex- 
ception of an unfortunately large part of the 
world— the Conmiunist bloc — human beings of the 
20th century insist on having a voice in matters 
of this kind. We are told that the workers of the 
Communist part of the world favor the current 
emphasis on heavy industry, including armaments 
industry, as against improvement in their living 
standards, but it is obvious that they are given no 

It is equally obvious that if the totalitarians 
were to take over in Africa they would arrive at 
decisions on these matters in the same way — with- 
out giving a choice to the worker. 

I believe it is safe to conclude that the free labor 
movements of Africa, spottily developed though 
they are, will have a strong voice in the direction 
which African development follows. They may 
favor the forced draft method, continuing present 
low standards of living and postponing enjoyment 
of some of the fruits of their labor. Or they may 
choose to take some of the benefits now and let the 
capital accumulation process take a little longer. 
No matter which path they choose, it should be 
their own choice. 

President Disapproves Increase 
in TariJFf on Tartar Imports 

White House press release dated March 14 
White House Announcement 

The President on March 14 decided that he 
would not approve the increased tariff on im- 
ported tartaric acid and cream of tartar which 
the United States Tariff Commission had recom- 

After a careful consideration of all of the facts 

of these cases, the President concluded that 
escape-clause relief was not warranted. He 
stated his decision in identical letters to the chair- 
men of the Senate Finance Committee and the 
House Ways and Means Committee. The Presi- 
dent's letter noted the irregular movements of 
production and imports and called attention to 
the decline in consumption which is partially at- 
tributable to the increased competition of substi- 
tute products. The President also discussed cer- 
tain imusual features of these cases arising from 
the fact that the two items in question are pro- 
duced by a single company producing a variety 
of products in the United States and abroad. 

On January 14, 1959, the Tariff Commission re- 
ported to the President the results of its tartaric 
acid and cream of tartar investigations under sec- 
tion 7 of the Trade Agreements Extension Act of 
1951, as amended. The Commission found that 
escape-clause relief was warranted in both cases; 
two Commissioners dissented from the finding 
with respect to cream of tartar. One member 
did not participate in either case. 

President's Letter to Committee Chairmen > 

March 14, 1959 
Dear Mr. Chairman : Under Section 7 of the 
Trade Agreements Extension Act of 1951, as 
amended, the United States Tariff Commission 
reported to me on January 14, 1959, the results of 
its escape clause investigations concerning tar- 
taric acid and cream of tartar. The Commission 
found that escape clause relief was warranted in 
both cases. Two Commissioners dissented from 
the finding with respect to cream of tartar, and 
one member did not participate in either case. 

I have carefully studied the facts of these cases 
and have had the benefit of the advice of the 
Trade Policy Committee and other departments 
and agencies of the Executive Branch. 

The Conunission reports that sales of domestic 
tartaric acid and cream of tartar had declined 
from the high levels of the earlier postwar period 
but had made a significant recovery by 1956-57. 
Imports of tartaric acid increased materially in 
1951, fell by one-half by 1955, and then mcreased 

' Identical letters were sent to Senator Harry P. Byrd, 
chairman of the Senate Committee on Finance, and 
Representative Wilbur D. Mills, chairman of the House 
Committee on Ways and Means. 

April 13, 1959 


to a level somewhat above that of 1951. Cream 
of tartar imports have fluctuated without any sig- 
nificant trend; in 1957 cream of tartar imports 
were near the 1950 level. 

The consumption of tartar products has de- 
clined from the high levels of 1950 and 1951. 
Consumption increased in 1956 above the low 
volume of 1954-55 but declined again in 1957. 
This pattern is partially attributable, as the Com- 
mission's report points out, to the increasing com- 
petition of substitute products. Citric acid, for 
example, has wholly displaced tartaric acid in 
some uses and partially displaced it in others. 
Similarly, phosphate-type baking powders have 
been increasingly competitive with tartar-type 
baking powders. To raise tariffs and thus in- 
crease the price of the products under investiga- 
tion would tend to encourage tlie additional de- 
velopment and use of alternative materials. This 
could mean a further loss of sales for tartar 

There is an unusual feature in these cases which 
creates difficulties in appraising the results of the 
Commission's investigation. The two items in 
question are domestically produced by one com- 
pany. Cream of tartar and tartaric acid were 
made in one of the company's plants which also 
produced Rochelle salts and nothing else. The 
production of all three items proceeds from the 
same basic raw materials. Although the propor- 
tion of each that can be produced from a given 
quantity of raw materials may be varied some- 
what, the report states that it is not generally 
economical in an integrated plant to produce only 
one or two of these products. The third product, 
Rochelle salts, is not included within these escape 
clause proceedings which were confined to tar- 
taric acid and cream of tartar. 

In addition, the financial experience of the one 
domestic producer involved is obscured somewhat 
by the fact tliat tartaric acid and cream of tartar 
sales account for less than one percent of the com- 
pany's total sales of varied chemicals produced in 
its plants in the United States and abroad. In 
such circumstances, the calculation of profits on 
particular items of output must be based on more- 
or-less arbitrary divisions of numerous costs and 
charges. In the immediate cases, the producer's 
financial data on tartaric acid and cream of tar- 
tar includes a share of the company's total re- 
search, development, and general administration 

expenditures. These expenditures are not, as 
two Cominissioners point out, closely related to 
tartar operation. Tlie research, development, and 
general administration charges to tartar opera- 
tions, moreover, are relatively large in compari- 
son with the company's returns on those opera- 
tions. Nevertheless, for the period 1950 through 
1957 the producer reports net operating profits 
in two years on tartaric acid, profits in five years 
on cream of tartar, and substantial profits in every 
year on Rochelle salts. 

After a careful consideration of all of the facts 
of these cases, I camiot conclude that escape 
clause relief is warranted. The existing rates of 
duty for tartaric acid and cream of tartar should 
I'emain unchanged. 

DwiGHT D. Eisenhower 

Development Loans 


The United States and Ecuador on March 23 
signed a loan agreement at Washington, D.C., by 
which the Development Loan Fund will lend 
$4.7 million to help complete the Pan-American 
Highway between Loja and Macara in the south- 
ern part of Ecuador. For details, see Depart- 
ment of State press release 209 dated March 23. 

Congressional Documents 
Relating to Foreign Policy 

86th Congress, 1st Session 

Space Handbook : Astronautics and its Applications. 
Staff report of the Select Committee on Astronautics 
and Space Exploration. H. Doc. 86. Februar.v 24, 
1959. 252 pp. 

Summary of Hearings : Astronautics and Space Explora- 
tions. Staff report on hearings before the Select Com- 
mittee on Astronautics and Space Exploration, 85th 
Congress, 2d session, on H.R. 11881. April 15-May 12, 

1958. H. Doc. 87. February 24, 1959. 46 pp. 

The International Geophysical Tear and Space Research. 
Staff rei>ort of the Select Committee on Astronautics 
and Space Exploration. H. Doc. 88. February 24, 

1959. 36 pp. 

Survey of Space Law. Staff report of the Select Com- 
mittee on Astronautics and Space Exploration. H. 
Doe. 89. February 24, 1959. 60 pp. 

Investigations by the Committee on Interstate and Foreign 
Commerce. Report to accompany S. Res. 27. S. Rept. 
53. February 26, 1959. 6 pp. 


\iepatimen\ of Sfafe Bulletin 


G.A. Adopts Resolutions 
on Future of Cameroons 

Following are statements made in the resumed 
13th session of the U.N. General Assembly hy U.S. 
Representatives Henry Cabot Lodge and Mason 
Sears during debate on the future of the trust ter- 
ritories of the Cameroons under French and Brit- 
ish administration., together with texts of the 
resolutions ado f ted in plenary session on March 13. 


My remarks today concern Cameroun under 
French Administration. On this subject we have 
before us the following: 

First, the draft resolution of Haiti, Italy, New 
Zealand, Paraguay, and the United States ^ calling 
for the unqualified independence of French Cam- 
eroun on January 1, 1960, and the termination of 
the trusteeship agreement on that date. 

Secondly, amendments presented by Burma and 
others referring to Prime Minister [Amadou] 
Ahidjo's intentions to hold elections after 

Finally, amendments by Ghana and others call- 
ing principally for elections before independence.^ 

Inasmuch as we now appear to be approaching a 
vote, it is fitting to express the United States atti- 
tude on these issues. 

Now, Mr. Chairman, there is, I think, no dispute 
over the necessity for terminating the trusteeship 
agreement or over the certainty that Cameroim 
will in fact be independent on January 1, 1960. It 
only remains for the General Assembly to fulfill 
its part in bringing about this significant event by 

'Made in Committee IV (Trusteeship) (U.S. delegation 
press release 3155 ) . 
- U.N. doc. A/C.4/L. 580. 
' U.N. doc. A/C.4/L. 583. 
* U.N. doc. A/C.4/L.581 and A/C.4/L.584/Rev. 1. 

affirming the termination of trusteeship at this 

The main issue which we confront is whether or 
not the government which obtained the promise of 
independence and is now leading Cameroun to in- 
dependence shall be allowed to continue its work 
without further demands upon it from outside. In 
this connection, Mr. Chairman, we confront the 
amendments presented by Ghana and others call- 
ing for new elections prior to independence. 

The United States is opposed to these amend- 
ments and will vote against them. 

All the advice which the General Assembly has 
received from United Nations sources seems to us 
to be opposed to elections prior to independence. 
We have, first of all, the report of the visiting mis- 
sion,^ a highly expert group which has shown itself 
to be worthy of our trust and which, unlike prac- 
tically all of us here in this room, has actually gone 
to the country and has seen things for itself. 

The report of the visiting mission says that the 
election of December 23, 1956, in which the present 
government was elected to office was decided by 
universal suffrage, that the successful candidates 
stood for independence, that the election campaign 
and the voting proceeded normally in all but a very 
small section of the territory, and that the per- 
centage of people voting compared favorably with 
elections in other African states. The visiting 
mission concluded : 

There are certainly insiiifieient grounds . . . for the 
holding of new general elections under United Nations 
supervision before the termination of trusteeship. Fur- 
thermore, it [the visiting mission] sees no reason why 
fresh elections to the Legislative Assembly should be a 
precondition of the attainment of independence. It must 
be remembered that it was the present Legislative As- 
sembly . . . which demanded and obtained from France 
the commitment to grant independence on 1 January 1960. 
It would be ironic if their representative character were 
to be called in question. 

Then, Mr. Chairman, we have the action of the 
Trusteeship Council. i 

' U.N. doe. T/1427 and T/14.34. 

Apri7 13, 1959 


The members of the Trusteeship Council by an 
overwhehning vote upheld the report of the visit- 
ing mission that there is no reason to have an elec- 
tion in Cameroun before January 1, 1960. The 
Council members who voted in favor of this posi- 
tion were: Burma, New Zealand, France, Haiti, 
Paraguay, the United States, the United Kingdom, 
India, China, Belgium, Australia, and Italy. 

Finally, there is the Government of Cameroun 
itself — a government which is fresher from the 
polls than the governments of the great majority 
of even those United Nations member states who 
hold free elections. 

Tlie Prime Minister of Cameroun has persua- 
sively put the case to this Assembly in these words : 

It is my responsibility, together with my Government 
and witli the Assembly which has placed its trust in us, 
to prepare my country for independence on 1 January 1960. 
In less than a year we have to accomplish a major task. 
I cannot concede that merely in order to please certain 
people, whom we are urging to play their part as citizens 
in building up Cameroun, we should inflict on our country 
all the confusion of a pointless electoral campaign. I say 
this in all sincerity, having carefully weighed all my 

The proposals for new elections prior to inde- 
pendence are thus contrary to the best judgment of 
the Prime Minister of the country itself, contrary 
to the best advice of a visiting mission of the Trus- 
teesliip Council which was sent to the territory, 
and contrary to the almost unanimous opinion of 
the Trusteeship Council, which is the United Na- 
tions Charter organ specifically charged with 
responsibility on trusteeship matters. 

Mr. Chairman, we must not cast doubt on the 
government which by peaceful methods has suc- 
ceeded in winning a commitment for immediate 
and complete independence. The United Nations 
must not support even indirectly those leaders, no 
matter how devoted to independence they may be, 
who exiled themselves from their country rather 
than renounce the use of force. 

The United States has heard no arguments or 
facts presented to this Assembly which are so over- 
whelming as to justify any reversal of the recom- 
mendations made by the visiting mission and the 
Trusteeship Council. Indeed we enthusiastically 
applaud the efforts of the Camerounian patriots, 
on the one hand, and the vision of the administer- 
ing power, on the other, which have made possible 
the independence of Cameroun. 

The facts are perfectly clear. The present Gov- 
ernment of Cameroun was democratically and 
freely elected. And equally important, this is the 
government which has actually negotiated inde- 
pendence. Certainly its success in this regard 
entitles it to take its place among the great African 
nationalist movements of this era. Let us keep our 
sense of perspective. 

The country will become independent in less 
than a year. It is now entering a period when 
constructive work and preparation for independ- 
ence must be undertaken in harmony and not in 
discord. The Prime Minister has informed us 
that, after the country is independent it must, as 
must every sovereign state, determine its final in- 
stitutions. He has told us that general elections 
will then be necessary to settle various constitu- 
tional and other questions and to help establish 
the final form of the institutions of a free and in- 
dependent Cameroun. The Prime Minister's 
statement should put at rest any legitimate fears 
whicli might have been held about the willingness 
of the present government to base itself upon 
popular support. 

The time has now come for the United Nations 
to assist the freely elected government and the 
people of Cameroun in their task and not to raise 
further obstacles in their way. By agreeing that 
Cameroim should be independent, the General As- 
sembly at the same time will be expressing its con- 
fidence that an independent Cameroun is capable 
of holding its own free elections. Surely, Mr. 
Chairman, those who advocate that there should be 
a United Nations-supervised election prior to in- 
dependence do not believe that this would be the 
last fair election in Cameroun. They cannot 
think that. They cannot consider that an inde- 
pendent Cameroun is incapable of holding proper 
elections. If they thought this, one could only 
conclude that they think Cameroun is not yet 
ready for independence ; and no one that I know 
of has said that. As Prime Minister Aliidjo said : 

It would be illogical to take the position that the As- 
sembly which was considered fit to ask for independence 
was now not considered suitable to receive it. 

For these reasons, the United States is con- 
vinced that it would be both imjust and disruptive 
for the General Assembly to recommend the dis- 
solution of tlie government which was responsible 
for bringing independence about. 

The United States Mali consequently vote 


Department of Slate Bulletin 

against all the amendments dealing with elections 
in docmnent A/C.4/L.584. 

The United States will also vote against amend- 
ment 2(a) in the same document, designed to ab- 
rogate the decree of July 13, 1955. The Gov- 
ernment of Cameroun has enacted a broad and 
generous amnesty covering all but the most serious 
of crimes. This amnesty has, in fact, been de- 
scribed as one of the most sweeping amnesties ever 
enacted. This amendment amoimts, in effect, to 
a recommendation that organizations which at- 
tempted to overthrow the government by force of 
arms should be backed by the General Assembly. 
We will, as I say, vote against this amendment. 

We do, however, accept the last amendment in 
the same document (A/C.4/L.584), which recom- 
mends the admission of Cameroun to the United 
Nations after independence. This was implicit in 
the original resolution. I am authorized to say 
that the cosponsors will incorporate this para- 
graph in the resolution without a vote. 

I now come directly to the amendments pro- 
posed by Burma and others, document A/C.4/L.- 
583. The United States appreciates this initia- 
tive to narrow the few remaining differences which 
exist, particularly on the question of elections. 
These amendments incorporate statements made 
by Prime Minister Ahidjo on the elections in sep- 
arate districts and on general elections after in- 
dependence. Tliey thus underline the willingness 
and intent of the Government of Cameroun to 
pursue a democratic course and to continue to re- 
flect the will of the Camerounian people. They 
are, as the operative paragraph suggests, an ex- 
pression of confidence in the good faith and capa- 
bilities of the present government. 

At the same time we have some hesitation about 
provisions, especially the new operative para- 
graph, which deal with the course of action of a 
country after its independence. We could not 
have supported them had not Prime Minister 
Ahidjo accepted them in the spirit of conciliation 
and statesmanship which, I may say, in my opin- 
ion, he has shown throughout this entire debate. 

The cosponsors of the resolution have consulted 
on these amendments presented by Burma and 
others and are prepared to incorporate them in 
our resolution. In making this move we believe 
we have gone as far as possible toward reaching 
general agreement. We urge that this effort to 
conciliate the point of view of those who favor 

elections be given its full weight and that the com- 
mittee join in unanimously welcoming Cameroun 
to independence without qualification. 

Let me conclude, Mr. Chairman, by appealing 
to all members of this Assembly to join in help- 
ing to create the conditions under which this new 
country can assume the begiimings of nationhood 
in the most favorable atmosphere. 

It is in all truth an exhilarating experience to 
assist a people to attain their freedom and inde- 
pendence. Let us carry out our task in the spirit 
of the charter to the end that the peoples of 
Cameroun can forever be grateful for the help 
which the United Nations was able to give them 
at tliis crucial moment in their history. 


First I want to say that we will vote for this 

However, the Kepresentative of Liberia has 
raised a point which creates a difficulty for us. 
It concerns her proposed amendment,' wliich calls 
for the holding of elections in the northern part 
of the territory under universal adult suffrage, 
including both men and women. 

Mr. Chairman, as a matter of principle, the 
United States strongly favors universal suffrage, 
including voting rights for women. It is actu- 
ally written into our Constitution. We are there- 
fore pleased that the elections in Frencli Cam- 
eroim and also in the Southern British Cameroons 
have in fact taken place on the basis of full uni- 
versal suffrage, including women. 

The Representative of the United Kingdom ex- 
plained to us yesterday the similar position which 
is taken by his Government. However, he also 
pointed out the depth of influence of custom in the 
Northern Region, which denies the voting privi- 
lege to women, and the reluctance of the United 
Kingdom to compel a change rather than to in- 
duce it through democratic and educational 

We also note that a recent conference among 
all three regions of Nigeria has decided that it 

'Made in Committee IV (U.S. delegation press release 
' U.N. doc. A/C.4/L.5S2/Rev. 1. 
° U.N. doc. A/C.4/L.587/Rev. 1. 

April 13, 1959 


was best not to force tlie issue of suffrage for 
women for the present. 

With that in mind, I would like to point out 
that, if the Liberian proposal were to be adopted, 
it would have the effect of calling upon the Ad- 
ministering Authority to organize a plebiscite on 
a basis which they could not carry out. For that 
reason, when the Liberian amendment comes to 
a vote, we regret to say we will have to vote 
against it. 


Mr. President, considering that the first 13 
colonies to become independent in modern colonial 
history were the Thirteen Original States of the 
present United States, it would be unnatural if 
we did not take pleasure in assisting others to 
obtain their own independence by voting for the 
resolutions presented here tonight. 

In the course of our debates, which have pro- 
duced so many far-reaching decisions on behalf 
of the Cameroonian people, we have on more than 
one occasion been gi'ateful for the assistance of 
the African leaders wlio have come here to repre- 
sent them. They have represented their country 
well. Prime Minister Ahidjo and Mr. [Daniel] 
Kemajou [President of the Legislative Assembly 
of Cameroun] and his associates have won the 
respect of all of us for the way they have pre- 
sented their case. Likewise Prime Minister 
[John] Foncha of the Southern Cameroons, for- 
mer Prime Minister [E. M. L.] Endeley, and Mal- 
1am Abdullahi of the Northern Kegion have been 
of the greatest assistance in advising us out of 
their political wisdom how we can best help the 
people. We have also benefited from the state- 
ments of the many Cameroonian petitioners who 
have gone to such trouble and expense to take part 
in our discussions. 

It is also fitting that we should express our ap- 
preciation for the cooperation which the British 
and French Governments have given to us and to 
the people of the Cameroons during the closing 
days of trusteeship. 

At all events, now that tlie 13th General As- 
sembly is almost over, we have enjoyed being with 
so many other nations in producuig two acceptable 

resolutions concerning the termination of trustee- 
ship in the Cameroons. 

In the process, if we have differed with some of 
our friends, we respected their opinions ; nor did 
any of us question the issue of independence. 

Altogether, the adoption of tlie resolution on 
French Cameroun by such a decisive vote and by 
nations representing Africa, Asia, Europe, and 
the Americas indicates overwhelming interna- 
tional recognition of the forthcoming independ- 
ence of that country. We were equally glad that 
the resolution on the British Cameroons received 
similar wide support. 

We believed that these votes were essential if 
West African nationalism, which we consider to 
be nationalism at its best, was to be properly en- 
couraged in tlie Cameroons. As in Ghana, in 
Guinea, in Togoland, and in Nigeria, West Afri- 
can nationalism in the Cameroons has proved the 
value of a determined but peaceful approach to 
national independence. 

The support which was given to both the reso- 
lutions has therefore made an essential contribu- 
tion to self-government in West Africa. This is 
most important, because the example of West 
Africa could have a most encouraging, if not a 
decisive, influence upon what we must all hope 
will lead to the early, peaceful, and orderly attain- 
ment of nationhood in what remains of dependent 
Africa, and believe me, Mr. President, nothing 
could be more important to the continued welfare 
of the United Nations. 

And, finally, Mr. President, let me say to the 
people of the Cameroons that they have our best 
wishes for their future. Thank you. 


French Cameroun ><> 

The General AssemHi/, 

Recalling its resolution 1282 (XIII) of 5 December 1958 
requesting tlie Trusteeship Council to examine, as early 
as possible during the twenty-third session, the reports of 
the United Nations Visiting Mission to Trust Territories 
in West Africa, 1958, on the Cameroons under French 
administration and the Cameroons under United Kingdom 
administration, and to transmit them, with its observa- 
tions and recommendations, to the General Assembly not 

'Made in plenary session (U.S. delegation press re- 
lease 3156). 

'"U-N. doc. A/Res/1349 (XIII) ; adopted by Committee 
IV on JIar. 12 (A/C.4/L. 580/ Rev. 1) by a vote of 56 to 
9 with 16 abstentions and in plenary session on Mar. 13 
by a vote of 56 to with 23 abstentions. 


Depatiment of Stale Bulletin 

later than 20 February 1959, to enable the Assembly, in 
consultation with the Administering Authorities, to take 
the necessary measures in connexion with the full attain- 
ment of the objectives of the Trusteeship System, 

Having cxuiiiincd the special report of the Trusteeship 
Council," including the report of the Visiting Mission on 
the Cameroons under French administration and having 
also considered the observations of the Administering 
Authority on it, 

Taking into account the statements made in the Fourth 
Committee by the representatives of the Administering 
Authority and by the Prime Minister of the Cameroons 
under French administration, 

Noting with satisfaction the adoption by the Legislative 
Assembly of the Cameroons under French administration 
of the amnesty law of 14 February 1959 and the assurances 
given by the Prime Minister of the Cameroons that this 
law is being put into effect on the widest possible basis 
and with the least possible delay. 

Noting the statements of the representatives of the 
Cameroons Government that it welcomes the return of all 
Cameroonians who in recent years have left the country 
and invites them to re-enter normal life without fear of 

Having been assured by the representatives of the Ad- 
ministering Authority and the Government of the Cam- 
eroons that there exist in the Territory freedom of the 
Press, of assembly and of political association, and other 
fundamental freedoms, 

Having been informed by the Prime Minister of the 
Cameroons under French administration that his Gov- 
ernment has issued a decree fixing 12 April 1959 as the 
date for elections to be held to fill the four seats in the 
Legislative Assembly allocated to the Sanaga-Maritime 
area, as well as two vacant seats in the Mbouda 

Noting with satisfaction the statement of the Prime 
Minister of the Cameroons under French administration 
that there will be general elections after independence 
since sucli ele<-tii)ns will then be necessary and useful 
in order to settle various constitutional and other 

Noting the resolution adopted by the Legislative As- 
sembly of the Cameroons on 24 October 1958, the con- 
clusions of the Visiting Mission and the declarations of 
the Administering Authority and the representatives of 
the Cameroons Government concerning the desire and 
readiness of the people of the Cameroons for independ- 

Taking into account the declarations of the Adminis- 
tering Authority and the Government of the Cameroons 
under French administration that the Territory will be- 
come completely independent on 1 January 1960, and 
the assurances given by the representative of France 
that his Government will sponsor the application that 
will thereupon be made by the Government of the Cam- 
eroons to be admitted to membership of the United 

Having heard the views of the petitioners, 

1. Resolves, in agreement with the Administering Au- 
thority, that, on 1 January 1960, when the Cameroons 
under French administration becomes independent, the 
Trusteeship Agreement approved by the General Assembly 
on 13 December 1946 shall cease to be in force in accord- 
ance with Article 76 b of the Charter of the United 
Nations ; 

2. Expresses its confidence that, at the earliest possible 
date after the attainment of independence on 1 January 
1960, elections will be held for the formation of a new 
assembly which should take decisions regarding the es- 
tablishment, in their final form, of the institutions of the 
free and independent Cameroons ; 

3. Recommends that, upcm the attainment of independ- 
ence on 1 January 1960, the Cameroons under French 
administration shall be admitted to membership of the 
United Nations according to Article 4 of the Chai^:er. 

British Cameroons '' 

The General Assembly, 

Recalling its resolution 1282 (XIII) of 5 December 
1958 requesting the Trusteeship Council to examine, as 
early as jwssible during the twenty-third session, the re- 
ports of the United Nations Visiting Mission to Trust 
Territories in West Africa, 1958, on the Cameroons under 
French administration and the Cameroons under United 
Kingdom administration, and to transmit them, with 
observations and recommendations, to the General As- 
sembly not later than 20 February 1959, to enable the 
Assembly, in consultation with the Administering Au- 
thorities, to take the necessary measures in connexion 
with the full attainment of the objectives of the Trustee- 
ship System. 

Having examined, in consultation with the Adminis- 
tering Authority, the report of the Trusteeship Council, 
including the report of the Visiting Mission on the Cam- 
eroons under United Kingdom administration,"^ 

Noting the statements made in the Fourth Committee 
by the representatives of the Administering Authority, 
by the Premier of the Southern Cameroons, by the Leader 
of the Opposition in the Southern Cameroons House of 
Assembly, and by the Minister for Northern Cameroons 
Affairs in the Government of the Northern Region of 

1. Recommends that the Administering Authority, in 
pursuance of Article 76 b of the Charter of the United 
Nations, take steps, in consultation with a United Na- 
tions Plebiscite Commissioner, to organize, under the su- 
pervision of the United Nations, separate plebiscites in 
the northern and southern parts of the Cameroons under 
United Kingdom administration, in order to ascertain 
the wishes of the inhabitants of the Territory concerning 
their future; 

2. Recommends further that in the northern part of 
the Territory the plebiscite should take place about the 

"U.N. doc. A/4094. 
April 13, J 959 

"U.N. doc. A/Res/1350 (XIII) ; adopted by Committee 
IV on Mar. 12 ( A/C.4/L.582/Rev. 1) by a vote of 57 to 
with 24 abstentions and in plenary session on Mar. 13 
by a vote of 56 to with 23 abstentions. 

" U.N. doc. T/1426 and Add. 1. 


middle of November 1959, that the people of the northern 
part of the Territory should be asked : 

"(a) Do you wish the Northern Cameroons to be part 
of the Northern Region of Nigeria when the Federation 
of Nigeria becomes indejiendent? 


"(6) Are you in favour of deciding the future of the 
Northern Cameroons at a later date?" 

and that the plebiscite should be conducted on the basis 
of the electoral register at present being compiled for 
the elections to the Federal House of Representatives ; 

3. Recommends further that the plebiscite in the south- 
em part of the Territory should be conducted during the 
next dry season between the beginning of December 1959 
and the end of April 1960 ; 

4. Decides that the two alternatives to be put to the 
people of the southern part of the Territory and the quali- 
fications for voting in the plebiscite there should be con- 
sidered by the General Assembly at its fourteenth session ; 

5. Expresses the hope that all concerned in the Territory 
will endeavour to reach agreement before the opening of 
the fourteenth session of the General Assembly on the 
alternatives to be put in the plebiscite in the Southern 
Cameroons and the qualifications for voting in it ; 

6. Decides to appoint a United Nations Plebiscite Com- 
missioner who shall exercise, on behalf of the General 
Assembly, all the necessary powers and functions of super- 
vision," and who shall be assisted by observers and staff 
to be appointed by the Secretary-General in consultation 
with him ; 

7. Requests the United Nations Plebiscite Commissioner 
to submit to the Trusteeship Council a report in two parts 
on the organization, conduct and results of the plebiscites, 
the first part of the report, which shall deal with the 
northern part of the Territory, to be submitted in time for 
transmission to the General Assembly for consideration 
before the end of its fourteenth session ; 

8. Requests the Trusteeship Council to transmit to it the 
reports of the United Nations Plebiscite Commissioner, 
together with any recommendations and observations it 
considers necessary. 

United States Delegations 
to International Conferences 

SEATO Council Meeting 

Tlie Department of State announced on March 
25 (press release 221) the following U.S. delega- 
tion to tlie fifth annual meeting of the South- 
east Asia Treaty Organization Council at 
Wellington, New Zealand, April 8-10. 

U.S. Representative 

Douglas Dillon, Under Secretary of State for Economic 

V. 8. Council Representative 

U. Alexis Johnson, Ambassador to Thailand 

Senior Advisers 

Adm. Harry D. Felt, USN, Commander in Chief Pacific 
Robert H. Knight, Deputy Assistant Secretary of Defense 

for International Security Affairs 
Thomas E. Naughten, Director, U.S. Operations Mission, 

G. Frederick Reinhardt, Counselor of the Department 

of State 
Walter S. Robertson, Assistant Secretary of State for Far 

Eastern Affairs 
Francis H. Russell, Ambassador to New Zealand 


Robert C. Brewster, Special Assistant to the Under Sec- 
retary of State for Economic Affairs 

John Joseph Conroy, U.S. Member of the SEATO Perma- 
nent Working Group, Bangkok 

Sterling J. Cottrell, Political Adviser to Commander in 
Chief Pacific 

L. Randolph Higgs, Deputy Chief of Mission, American 
Embassy, Wellington 

Howard D. Jones, Adviser to the Special Assistant for 
SEATO Affairs, Department of State 

John Blake Lanum, Public Affairs OflScer, American Em- 
bassy, Wellington 

J. Gordon Mein, Director of the Office of Southwest Pa- 
cific Affairs, Department of State 

Rear Adm. E. J. O'Donnell, USN, Regional Director, Far 
East International Security Affairs, Department of 

Col. Lynn E. Witt, USAF, Commander in Chief Pacific 

Robert W. Zimmermann, Special Assistant for SEATO 
Affairs, Department of State 


Dudley Miller, Executive Secretariat, Department of 

Secretary of Delegation 

John R. Bartelt, Jr., Oflice of International Conferences, 
Department of State 


" The Assembly on Mar. 13 elected Djalal Abdoh of Iran 
to be U.N. Plebiscite Commissioner. 

Current Actions 


Postal Services 

Universal postal convention with final protocol, annex, 
regulations of execution, and provisions regarding air- 
mail with final protocol. Done at Ottawa October 3, 

Ratification deposited: United States, March 31, 1959. 
Entered into force: April 1, 1959. 


Deparfmenf of Siafe Bulletin 

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: Kuwait, January 12, 1959. 


International load line convention. Signed at London 
July 5, 1930. Entered into force January 1, 1933. 47 
Stat. 2228. 
Accession deposited: Kuwait, January 12, 1959. 


International telecommunication convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 19.54. TIAS 3266. 
Ratification deposited: Iraq, February 4, 1959. 
Accession deposited: Republic of Guinea, March 9, 1959. 

Telegraph regulations (Geneva revision, 1958) annexed 
to the international telecommunication convention of 
December 22, 1952 (TIAS 3266), with appendixes and 
final protocol. Done at Geneva November 29, 1958.' 
Notification of approval: Iran, January 28, 1959. 


Geneva convention relative to treatment of prisoners of 

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, 19.o0; for the United States February 2, 
1956. TIAS 3364, 3362, 3363, and 3365, respectively. 
Adherence deposited: Mongolian People's Republic, De- 
cember 20, 1958. 



Agreement governing tolls on St. Lawrence Seaway. Ef- 
fected by exchange of notes at Ottawa March 9, 1959. 
Entered Into force March 9, 1959. 


Agricultural commodities agreement under title I of the 
Agricultural Trade Development and Assistance Act of 
1954, as amended (68 Stat. 455; 7 U.S.C. 1701-1709). 
Signed at Colombo March 13, 1959. Entered Into force 
March 13, 1959. 


ICA Organizational Clianges 

Press release 195 dated March 17 

Two major changes in the internal organization 
of the International Cooperation Administration 
were announced on March 17. 

'Not in force. 
April 13, 7959 

A new Office for Private Enterprise has been 
established. It will be responsible for ICA's re- 
lations with private enterprise and for developing 
a country-by-country program designed to stimu- 
late substantially increased participation of pri- 
vate enterprise in the economic assistance and 
teclmical cooperation phases of the mutual se- 
curity program. 

This move is designed to enlist actively the re- 
sources and talents of private enterprise in the 
development of the free-world countries. Crea- 
tion of this new office reflects the views of Con- 
gress as expressed in the Mutual Security Act 
of 1959. At that time ICA was urged to develop 
ways and means of expanding the role of private 
enterprise in advancing the foreign policy ob- 
jectives of the United States. It also is in line 
with the recent recommendations of the Com- 
mittee on World Economic Practices to President 

The new office will work in close collaboration 
with the U.S. Department of Commerce, the De- 
velopment Loan Fimd, the Export-Import Bank, 
and other U.S. Government and international 
agencies concerned with the problem of increasing 
U.S. private enterprise participation in world 

One of the principal instruments for encourag- 
ing the participation of private enterprise ia for- 
eign economic development has been ICA's invest- 
ment guarantee program. This program will be 
continued as a component of the Office for 
Private Enterprise. 

The new office will be headed by Edwin H. 
Arnold, who has been Deputy Director for Tech- 
nical Services of ICA for the ]3ast 2i^ years. 
Mr. Arnold was formerly director and national 
vice president of the National Association of 
Manufacturers. He was engaged for many years 
in the chemical industry as president and chair- 
man of the board of the Arnold, Hoffman Co., 
Providence, R.I. 

In a second major move it was announced that 
all ICA technical services offices would hereafter 
repoi-t directly to Dr. D. A. FitzGerald, who has 
served in an executive capacity with ICA and its 
predecessor agencies since 1948. 

To implement this move Stuart H. Van Dyke 
has been designated Assistant for Regional Pro- 
gi-ams under Dr. FitzGerald and E. N. Holm- 
green as Assistant for Technical Services. Mr. 
Van Dyke has been Regional Director for Africa 


and Europe for ICA since Februai*y 1956; Mr. 
Holmgreen has been Director of ICA's Office of 
Food and Agriculture since 1951. 

This change is designed to centralize responsi- 
bility for all geogi'aiahical and functional opera- 
tions under one deputy director. 

Revision of Consular Districts in Australia 

Department mailing notice dated March 24 

Effective April 1, 1959, the consular districts of Bris- 
bane and Sydney are redefined. The purpose of this 
revision is to transfer Norfolk Island from the Brisbane 
consular district to the consular district of the Consulate 
General at Sydney. 

Brisbane, Queensland (Consulate) 

The State of Queensland, all of the area of the Northern 
Territory north of the 20th parallel, the Territory of 
Papua, the Trust Territory of New Guinea, and the Trust 
Territory of Nauru. 

Sydneij, New South Wales (Supervisory Consulate 


The State of New South Wales, the Australian Capital 
Territory, and Norfolk Island. 

This information supersedes the definition of these two 
consular districts as stated in the mailing notice of 
January 22, 1959.' 

Consular Agency at Las Palmas 

Department mailing notice dated March 2,5 

On March 31 jurLsdiction over the consular agency at 
Las Palmas-Santa Cruz de Tenerife will be transferred 
from the Consulate General at Seville to the Embassy at 
Madrid. At that time the entire area of the Canary 
Islands, presently a part of the Seville consular district, 
will be incorporated into the consular district of the 
Embassy at Madrid. No other changes in consular 
districts in Spain will result from this transfer. 

Establishment of Post at Taiz, Yemen 

Effective March 16 the American Legation at Taiz, 
Yemen, was opened to the public. Raymond A. Hare is 
Minister to Yemen, resident at Cairo. Charles B. Fergu- 
son is Charg6 d' Affaires ad interim, resident at the posrt- 


The Senate on March 19 confirmed Thomas C. Mann, 
Assistant Secretary for Economic Affairs, to be the rep- 
resentative of the United States on the Commission on 
International Commodity Trade of the Economic and 
Social Council of the Linited Nations. 


Recent Releases 

For nale by the Superintendent of Doeuments, U.S. Oov- 
crnment Priiiting Offlee, Washington 25, D.C. Address 
requests direet to the Superintendent of Documents, ex- 
cept in the case of free publications, which may be 
obtained from the Department of State. 

What ICA Is Doing in Afghanistan. Pub. 6671. Near 
and Middle Eastern Series 31. 7 pp. Limited distribution. 

Address made by Robert M. Snyder, Director, U.S. Opera- 
tions Mission in Afghanistan, at Kabul, October 29, 1958. 

Information and Travel Tips. 

and Foreign Service Series 83. 

Pub. 6728. Department 
4 pp. Limited distribu- 

Some do's and don'ts for safeguarding passports of trav- 
elers abroad. 

U.S. Participation in the International Atomic Energy 
Agency. Pub. 6731. International Organization and Con- 
ference Series I, 38. 36 pp. Limited distribution. 

Report by the President to Congress on the activities of 
the International Atomic Energy Agency and the partici- 
pation of the United States therein for the .year 19.57. 

Treaties in Force: A List of Treaties and Other Interna- 
tional Agreements of the United States in Force on Janu- 
ary 1, 1959. Pub. 6762. 270 pp. $1.25. 

This publication lists treaties and other international 
agreements of the United States on record in the De- 
partment of State on January 1, 19.59, which had not 
expired by their terms or which had not been denounced 
by the parties, replaced or superseded by other agree- 
ments, or otherwise definitely terminated. 

United States Educational Foundation in Iceland. TIAS 

4159. 2 pp. 5<J. 

Agreement between the United States of America and 
Iceland, amending agreement of February 23, 1957. Kk- 
change of notes — Signed at Reykjavik October 2 and No- 
vember 27, 1958. Entered into force November 27, 1958. 

TIAS 4160. 2 pp. 

' Bulletin of Feb. 23, 1959, p. 286. 

Surplus Agricultural Commodities. 


Understanding between the United States of America and 
Turkey, relating to agreement of January 20, 1958. Ex- 
change of notes — Dated at Ankara May 13 and June 9, 
1958. Entered into force June 9, 1958. 

Surplus Agricultural Commodities. TIAS 4161. 3 pp. 5^. 

Agreement between the United States of America and 
Turke.v, amending agreement of January 20, 195S, as sup- 
plemented. Exchange of notes — Signed at Ankara No- 
vember 24, 1958. Entered into force November 24, 1958. 

Weather Stations — Cooperative Program at Lima. TIAS 
4163. 3 pp. 5^. 

Agreement between the United States of America and 
Peru, extending agreement of April 17, 1957. Exchange 
of notes — Signed at Lima November 13 and December 24, 
1958. Entered into force December 24, 1958. 


Deparfment of State Bulletin 

April 13, 1959 


e X 

Vol. XL, No. 1033 


G.A. Adopts Resolutions on Future of Cameroons 

(Lodge, Sears, texts of resolutions) 531 

The Role of Labor in African Development ( Satter- 
thwaite) 524 

Asia. Promoting Better Understanding Between 

the U.S. and Asia (Murphy) 512 

Australia. Revision of Consular Districts in Aus- 
tralia 538 

Austria. President Eisenhower Receives Austrian 

Book on U.S. Aid 515 

Belgium. King Baudouin of Belgium To Visit 
United States 512 

Bulgaria. United States and Bulgaria Resume 
Diplomatic Relations 512 

China, Communist 

Promoting Better Understanding Between the U.S. 
and Asia (Murphy) 512 

U.S. Expresses Concern at Actions of Chinese Com- 
munists in Tibet (Herter) 514 

Claims. Germany Makes Prepayment on Debt to 
U.S. for Postwar Economic Aid (text of U.S. 
note) 516 

Communism. Passports and the Communist Con- 
spiracy (Hanes) 517 

Congress, The. Congressional Documents Relating 

to Foreign Policy 530 

Department and Foreign Service 

Confirmations (Mann) 538 

Consular Agency at Las Palmas 538 

Establishment of Post at Taiz, Yemen 538 

ICA Organizational Changes 537 

Revision of Consular Districts in Australia . . . 538 

Economic Affairs 

Confirmations (Mann) 538 

President Disapproves Increase in Tariff on Tartar 
Imports 529 

Ecuador. Development Loan 530 

France. Western Foreign Ministers Meet at Wash- 
ington 508 


Germany Makes Prepayment on Debt to U.S. for 

Postwar Economic Aid (text of U.S. note) . . . 516 

Promoting Better Understanding Between the U.S. 
and Asia (Murphy) 512 

U.S. Proposes Date and Place for Meeting of For- 
eign Ministers (texts of U.S. and Soviet notes) . 507 

Western Foreign Ministers Meet at Washington . . 508 

Japan. Promoting Better Understanding Between 

the U.S. and Asia (Murphy) 512 

Mutual Security 

Development Loan (Ecuador) 530 

ICA Organizational (Changes 537 

President Eisenhower Receives Austrian Book on 

U.S. Aid 515 

Non-Self-Governing Territories. G.A. Adopts Res- 
olutions on Future of Cameroons (Lodge, Sears, 
texts of resolutions) 531 

Passports. Passports and the Communist Con- 
spiracy (Hanes) 517 

Presidential Documents. President Disapproves 

Increase in Tariff on Tartar Imports 529 

Publications. Recent Releases 538 

Southeast Asia Treaty Organization. SEATO 

Council Meeting (delegation) 536 

Spain. Consular Agency at Las Palmas .... 538 

Tibet. U.S. Expresses Concern at Actions of 

Chinese Communists in Tibet (Herter) .... 514 

Treaty Information. Current Actions 536 

U.S.S.R. U.S. Proposes Date and Place for Meeting 
of Foreign Ministers (texts of U.S. and Soviet 

notes) 507 

United Kingdom 

Prime Minister Maemillan Visits Washington 

(Nixon, Maemillan) 511 

Western Foreign Ministers Meet at Washington . . 508 
United Nations 

Confirmations (Mann) 538 

G.A. Adopts Resolutions on Future of Cameroons 

(Lodge, Sears, texts of resolutions) 531 

Yemen. Establishment of Post at Taiz, Yemen . . 538 
Name Index 

Eisenhower, President 529 

Hanes, John W., Jr 517 

Herter, Acting Secretary 514 

King Baudouin 512 

Lodge, Henry Cabot 531 

Maemillan, Harold 511 

Mann, Thomas C 538 

Murphy, Robert 512 

Nixon, Richard M 511 

Satterthwaite, Joseph C 524 

Sears, Mason 533 

Check List of Department of State 
Press Releases: March 23-29 

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

Releases issued prior to March 23 which appear 
in this issue of the Bulletin are Nos. 195 of March 
17, 197 of March IS, 203 of March 19, and 206 of 
March 20. 


DLF loan to Ecuador (rewrite). 

Meeting of Western Fort'ign Ministers. 

Note to U.S.S.R. on submarine cables. 

Pakistan credentials (rewrite). 

Hanes: "Passports and the Communist 

Arrival of King of Jordan. 

ICA statement on McNaniara ease. 

Biographic sketch of Mr. Dillon. 

Three consulates in Western Pacific 

German debt payment. 

Murphy : Japan-America Society of 

Educational exchange (Africa, Greece). 

SEATO delegation (rewrite). 

Herter: Chinese Communist activity in 

Note to U.S.S.R. on German problem. 

Schedule for NATO Council meeting. 

CCIR ninth plenary assembly (re- 

Resumption of diplomatic relations 
vi'ith Bulgaria. 

Denmark relaxes dollar-import con- 

Delegation to NATO ministerial meet- 
ing (rewrite). 

SuiT3lus-food aid to Haiti. 

CCIR ninth plenary assembly (re- 

* Not printed. 

t Held for a later issue of the Bulletin. 




























United States 
Government Printing Office 


Washington 25, D.C. 






The Communist Economic Tlireat 



In May 1958 the Department of State issued a pamphlet en- 
titled "The Sino-Soviet Economic Offensive in the Less Developed 
Countries." The present publication, a condensation of that 
study, which was derived from a gi'eat many authoritative 
sources, includes the most recent data available regarding the 
Communist program of economic penetration. 

As was pointed out in the earlier study, this program represents 
an attempt by the Sino-Soviet bloc to employ its gi'owuig economic 
and industrial capacities as a means for bringing the newly 
developing free nations within the Communist orbit. The Sino- 
Soviet program is a massive attempt, having involved to date 
financial commitments by the bloc of nearly $2.5 billion. 

This document is a description of the scope and natui-e of this 
offensive and an analysis of its motives and objectives. 

Publication 6777 

15 cents 


Order Form 

,Supt. of l>ocuinents 
Govt. Priming Offirc 
Wasliingloti 25, !).<'. 

Enclonecl find: 


(cash, check, or mority 
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Vol. XL, No. 1034 

AprU 20, 1959 


Remarks by President Eisenhower 543 

Remarks by Acting Secretary Herter 546 

Statement by Joseph M. A. H. Luns 547 

Statement by Paul-Henri Spaak 550 

Text of Final Communique 553 


TO SUBMARINE CABLES • Texts of U.S. and Soviet 
Notes and U.S. Aide Memoire 555 


Douglas MacArthur II 559 


SHRIMP (Text) 566 

For index see inside back cover 


Vol. XL, No. 1034 • Publication 6807 
April 20, 1959 

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Note: Contents of this publication are not 
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Tenth Anniversary of the North Atlantic Treaty Organization 


Following are revfiarks made hy President 
Eisenhower and Acting Secretary of State Herter 
at the opening session of the Ministerial Meeting of 
the North Atlantic Council at Washington, D.O., 
on April 2, together with statements made at the. 
same session hy Joseph M. A. H. Luns, Honorary 
President of the Council, and Paul-Henri Spaak, 
Chairman of the Council and Secretary General 
of the North Atlantic Treaty Organisation, the 
text of a final communique issued on April 4, and 
an announcement of the U.S. delegation. 


White House press release dated April 2 

It is for me a great privilege and a gi-eat 
pleasure to welcome to Washington the Secretary 
General of the North Atlantic Treaty Organiza- 
tion and the Foreign Ministers of the NATO 

As I review the list of the distinguished per- 
sons of this audience, I find the names of many 
old friends and colleagues from times past, in- 
cluding the early days when I myself was asso- 
ciated directly with NATO. It is indeed heart- 
warming to greet you here this morning. 

And I think it would be somewhat miraculous 
if an old soldier should find it possible to restrain 
the impulse to reminisce just a bit about those 
early days when we were trying to organize and 
to bring together the military portions of the 
NATO alliance. 

In doing so, I visited each of the countries. I 
went to see their heads of state, heads of gov- 
ernment, the chiefs of the armed services, and as 
many members of the governments and of the cit- 
izens of the country as I could possibly see. 

There was only one message that I had to carry. 
I knew that the basic purpose of the alliance 
was already achieved. Here in this room 2 years 
earlier there had been brought about that union 
of hearts and of purpose that was affirmed in the 
treaty under which we still operate. 

But the achieving of the strength that could 
realize a particular passage of the Bible that 
comes to mind was still to be realized. That pas- 
sage in St. Luke says, "Wlien a strong man armed 
keepeth his palace, his goods are in peace." That 
was what we had to do. 

To the members of the armed services and to the 
governments, then, I had one simple message. 
It was this: Look at the hand. Each finger is 
not of itself a very good instrument for either 
defense or offense, but close it in a fist and it 
can become a very formidable weapon of defense. 

So our job was to make each finger stronger, 
sturdier, so as to get a fist that could defy any- 
one that would think of aggression against the 
free world and the values that it is still defending 
as it was then defending. 

I would like to ask each delegation, each in- 
dividual from another country, to carry back to 
those countries my affectionate greetings and my 
warm remembrance of the kindness and the co- 
operation they then gave to me some 8 or 9 years 
ago. It was a very great privilege — I think one 
of the most interesting experiences of my entire 
military life. 

Growth of NATO 

Today we celebrate the 10th anniversary of this 
organization. Founded as an alliance to assure 
our defense against the threat of aggression. 

April 20, J 959 


NATO has grown into a powerful security com- 
munity by means of which the free people of 15 
nations pursue the goal of a durable peace with 

Now for generations each nation, including my 
own, pursued this aim through its own individual 
efforts. But the galloping pace of technology and 
the upheavals of modern war brought the world 
suddenly to a new stage of its existence. By 1945 
Americans, together with all other peoples, recog- 
nized the urgent need for a new relationship 
among nations. 

That year the establishment of the United Na- 
tions Organization lifted hopes the world over 
that all peoples would at last join together in 
a universal quest for peace and justice. Momen- 
tarily it seemed that mankind at long last had 
begun to put aside the weapons of war in favor 
of the tools of peace. But quickly it became evi- 
dent that the aftermath of World War II had 
brought, along with this opportunity, new dangers 
of fearful and unusual significance. 

War for all nations has always meant privation, 
suffering, and death. But with the advent of 
nuclear science the possibility of war suddenly 
threatened entire civilizations. Almost simul- 
taneously a new dictatorship reached such great 
power that it openly challenged the concepts of 
justice and freedom which our respective nations 
adliere to and support. So challenged, no free 
nation dedicated to peace and the preservation of 
priceless human values could adopt aggression as 
a countermeasure. But all quickly realized that, 
to stand firmly in defense of their people and 
those peoples' rights, they had to act in unison. 

The stake was not merely the security of our 
nations from military onslaught; the true issue 
was our ability to protect the spiritual founda- 
tions of Western civilization against every kind 
of ruthless aggression, whether the attack should 
be military, economic, or political. 

Out of this realization was born the North At- 
lantic Treaty Organization. Its immediate pur- 
pose was the prevention of war by deterring mil- 
itary aggression in Europe. The task presented 
many difficulties, one of which was that there was 
no guiding precedent. But out of necessity and 
through the good will of member nations we suc- 
ceeded within a few short years in building a sub- 
stantial defensive establishment. 

Atlantic Partnership in Other Fields 

Since NATO was formed there has been no 
further Communist advance in Europe, either by 
political or by military means. And, while our 
military efforts have obviously required economic 
sacrifice, they have by no means stunted the eco- 
nomic growth of member countries. Instead 
there has been a notable increase in production, 
trade, and living standards among the NATO 
peoples during the 10 years of NATO's existence. 

NATO is unique in many respects. Of these, 
the most important by far is our common support 
of spiritual and moral values. Each nation has, 
of course, its heritage of religion, language, lit- 
erature, music, education, and other elements of 
culture which give real meaning to life. But 
among all there is a close kinship because of a 
common belief in the freedom and the dignity of 
man. All of us are devoted to the twin ideals of 
peace and justice, neither of which can live long 
without the other. 

Sustained by a conviction in the rightness of 
our cause, by faith in ourselves and in each other, 
NATO has grown steadily in its capacity to as- 
sure our common security. 

And our alliance is developing an ever-growing 
political cohesion. The Permanent Council, imder 
the chairmanship of the able and dedicated 
Mr. Spaak, is becoming an effective mechanism 
for harmonizing the policies of the Atlantic peo- 
ples. By our association we have created possi- 
bilities for new and unprecedented forms of eco- 
nomic cooperation among the free peoples of 
Europe. Together we have laid the foimdation 
for intimate Atlantic partnership in other fields, 
such as science and technology. All these 
achievements of the past decade merely point the 
way for an accelerated progress ahead. 

Thus united in purpose and sustained by our 
moral, economic, and military power the mem- 
ber nations begin the second decade of their as- 
sociation in NATO. 

Door Open for Discussion and Negotiation 

We shall always keep open the door of honest 
discussion — even to those whose creed is world 
domination. Our governments conduct continu- 
ous, almost daily, discussions and negotiations 
with the Soviet Union. We use regular diplo- 


Department of Stale Bulletin 

Salute to NATO 

Rciiiiirks bij Acting Secretarp Herter' 

I am delighted to have the opportunity to speak for 
a few minutes about the North Atlantic Treaty Or- 
ganization, which has as great significance to all Amer- 
icans as it does to the peoples of the other free nations 
which have joined together in this unique alliance and 

Ten years ago yesterday the 12 original signatories 
of the North Atlantic Treaty met in Washington and 
put their names to this document which has meant and 
continues to mean so much to our security. 

Fundamentally, NATO was organized because of the 
threat from the Soviet Union. In the aftermath of 
^\'orld War II the Soviet Union, continuing to main- 
tain a powerful military force, sought the piecemeal 
conquest of Western Europe by force or the threat of 
force. NATO's first task was to prevent the carrying 
out of such a threat, with all this would have meant 
to freedom everywhere. NATO has fully succeeded 
in doing this. It has done so by pooling and forging 
the resources of the member countries into a powerful 
defensive shield served by dedicated men from all the 
NATO coimtries working together every day of the 
year. Such a degree of military cooperation among 
15 free nations has never before existed in time of 

Under present world conditions the maintenance 
and improvement of this protective shield continues 
to be the indispensable foundation on which the mem- 
ber nations can build collaboration in other fields. 

But there are other sides to NATO, just as impor- 

' Made in introducing a special 10th anniversary 
Salute to NATO program on "College News Confer- 
ence" which was carried by the American Broadcast- 
ing Company's television network on Apr. .5 (press 
releiise 247 dated Apr. 4, for release Apr. 5). 

tant but not nearly so well known. For example, very 
few people realize that the Permanent Council of the 
North Atlantic Treaty Organization meets in Paris 
at least once a week, and often more frequently, to 
harmonize the policies of the members of the alliance 
on a wide variety of issues facing the free world. This 
process of political consultation has grown tremen- 
dously in the past 2 years. It is a process by which, 
through frank discussion and cooperation freely ar- 
rived at, the representatives of the nations of NATO 
achieve a truly remarkable degree of unity. It is 
vastly different from the dictatorially imposed mono- 
lithic unity of the Soviet bloc. 

We should, of course, never cease in our efforts to 
develop further the habit of consulting and working 
together. But we should also understand the really 
dramatic nature of what we have already achieved. 
The degree of cooperation which the 15 member coun- 
tries of NATO have develojied in the last 10 years is 
something wholly new in history. 

My special thanks to you, Mrs. Hagy.^ Through 
many activities, by no means confined to this program 
only, have you contributed much toward better under- 
standing of NATO. 

I am also delighted that such distinguished states- 
men of the NATO countries as Mr. Joseph Luns, the 
Foreign Minister of the Netherlands and this year's 
Honorary President of the North Atlantic Council, 
Mr. Couve de Murville, Foreign Minister of France, 
Mr. Selwyn Lloyd, Secretary of State for Foreign Af- 
fairs of the United Kingdom, and Dr. Heinrich von 
Brentano, Foreign Minister of the Federal Republic of 
Germany, have been able to take the time to appear 
on tils program. 

' Mrs. Ruth Geri Hagy is moderator of the program. 

matic establishments, special committees, organs 
of the United Nations, and occasional meetings of 
responsible political leaders. No means are over- 
looked that give rise to promise of constructive 

We shall continue these negotiations and dis- 
cussions. We shall continue to make concrete and 
realistic proposals for disarmament, for a just 
solution of the problems of Germany, for Euro- 
pean security, and for cooperation in the newly 
opening realm of outer space. Although we shall 
always avoid substituting illusion for reality, we 
shall continue to strive for a more general and 

far-reaching, but always practical, settlement of 
differences with the Soviets. 

The need, as we reach for a lasting peace with 
justice, is the abandonment of the Communist 
purpose of world domination. We shall never 
cease to encourage such a change. Meanwhile we 
must be prepared during the years ahead to live 
in a world in which tension and bickering between 
free nations and the Soviets will be daily experi- 
ences. So, to live confidently, freedom's greatest 
requirement is unity — the unity which is the very 
lifeblood of NATO. 

On this base we propose to build the road lead- 

April 20, 1959 


ing toward lasting peace and universal justice. 

Building this road will require courage — cour- 
age to stand fast in the face of menace and of 

It will require saci'ifice — sacrifice needed to 
maintain and improve our collective strength over 
a long period of time. 

It will require perseverance — perseverance to 
explore every avenue which offers reasonable hope 
for just solutions to the issues between ourselves 
and the Soviet Union. 

All these qualities the free nations possess in 
full measure; we must never tire or weaken in 
our practice of them. 

Those who respect the dignity of man will not 
flinch before the magnitude of the task. Rather 
they will prove once again that greatness of spirit 
and love of liberty will overcome the forces of 
atheistic materialism and coercion and give to all 
the nations, under God, the blessings of security 
along with a just and durable peace. 

Thank you very much. 


Press release 242 dated April 2 

Secretary of State Dulles regrets that he could 
not be here in person this morning and asked me 
to extend to you his greetings and warmest best 
wishes and to tell you that during these days his 
thoughts will be very much with all of you. 

Our meeting today marks the completion of 10 
years in the life of the North Atlantic Treaty 
Organization and opens the 23d session of its Min- 
isterial Coiuicil. Both milestones are significant. 

The fact that this is the 10th anniversary sym- 
bolizes a decade without aggression against Eu- 
rope and North America, a duration of peace 
made possible by the strength and firmness of the 
NATO shield. The fact that this is the 23d meet- 
ing of the Council is an indicator of the degree of 
cooperation and consultation, and the resulting 
unity, from which our strength and firmness have 
been forged. 

To the Honorary President of the Comicil, to 
Secretary General Spaak, and to the members of 
the North Atlantic Council I offer a most cordial 
welcome. Greetings also to the NATO Military 
Standing Group and to the Military Comnaittee 

in Permanent Session. We recall particularly to- 
day those who signed the North Atlantic Treaty 
here in this hall on April 4, 1949,^ and I extend a 
special welcome to those among the original sign- 
ers who are here today. These comprise Secre- 
tary General Spaak, Foreign Minister Lange of 
Norway, Baron Silvercruys of Belgium, Ambas- 
sador Thors of Iceland, Ambassador Stikker of 
the Netherlands, former Ambassador Morgen- 
stierne of Norway, and former United States Sec- 
retary of State Dean Acheson. 

Others who are not with us will also be remem- 
bered for their share in the conclusion of the 
North Atlantic Treaty 10 yeai-s ago. We Ameri- 
cans particularly remember the late Senator Ar- 
thur Vandenberg, whose leadership, with the 
overwhelming approval of the Senate, cleared the 
way for the United States to join associations for 
mutual defense in peacetime and thereby made 
possible our signing of the treaty. Others, such 
as Lord Ismay, our first Secretary General, will 
be recalled for their valued contributions to 10 
years of strength and peace. I would especially 
acknowledge the high service rendered NATO by 
the first Supreme Commander of its forces in Eu- 
rope, Dwight D. Eisenhower, who, as President 
of the United States, honors us with his attend- 
ance this morning. 

There are two groups here today to which I 
wish to call particular attention for they symbol- 
ize two major elements of NATO's strength. 
There is the student body and faculty of the 
NATO Defense College in Paris, who are here on 
a training tour. In their varied uniforms they 
jiresent a clear reminder of the military coopera- 
tion which forms the basis of our alliance. There 
are also with us representatives of individuals and 
organizations in various NATO countries who 
have helped to promote wide public understand- 
ing of the importance of NATO to our freedom 
and security. These groups and individuals sym- 
bolize the civil foundations of NATO's military 
strength. I am glad to welcome them and to ex- 
press the gratitude of all of us for their service. 

It is appropriate that we have gathered here 
not only to observe an aimiversary but to open a 
working meeting. The accomplislmients of the 
past have been splendid, and we are proud of 

* Bulletin of Apr. 17, 1949, p. 471. 


Department of State Bulletin 

tliem, but this is not a time for resting on our 

The aggressive challenge which confronts us to- 
day is the same challenge we faced 10 years ago, 
the challenge which led to the creation of NATO ; 
and the unity demanded for sur\dval is the same. 
But the conditions of our world have changed in 
a decade. 

Ten years ago many of the nations of our alli- 
ance were struggling to regain their feet econom- 
ically in the aftennath of war. Today the coun- 
tries of the Atlantic Community have made heart- 
ening economic progress and are striving for fur- 
ther gains. 

Ten yeai-s ago common action and consultation 
among us in peacetime were first being tried out, 
tentatively and cautiously. Today these activities 
are increasingly established in our habits and in 
a growing number of our institutions. 

Ten years ago the threat of aggression was 
naked and blunt. Today the threat is at times 
more subtle, varied, and devious but is no less 

If we are to meet the old challenge under the 
new conditions, therefore, we must continue to re- 
mind ourselves that military strength, and the 
courage to employ that strength if required, was 
necessary to permit a decade of political and eco- 
nomic advancement and is the indispensable con- 
dition for further progress. 

We must also continue to develop and expand 
the habits of consultation and the channels of 
communication which have contributed so much 
to prosperity and peace. 

And we must continue to adapt our defenses to 
whatever new forms the challenge may take ; but 
at the same time we must remain ready to explore 
any chance for achieving through negotiations a 
genuine resolution of the issues which threaten 

So I welcome all our guests to this commemo- 
ration of 10 successful years in NATO, and I wel- 
come the members of the North Atlantic Coimcil 
to the opening session of its 23d meeting. 

The people of America honor their comrades 
in NATO for their courage and devotion. They 
thank them for their priceless contributions to the 
search for peace. And they pray with them that 
this alliance, and the friendship of which it is the 
symbol and product, will endure and meet the 

challenges of the next 10 years, and of 10 times 10, 
as it has in this first momentous decade. 


It is my pleasure and honor to express to you, 
Mr. President, on behalf of the North Atlantic 
Council our deep gratitude to you, and through 
you to the people of your great coimtry, for hav- 
ing the 10th anniversary meeting of the North 
Atlantic Treaty Organization in the capital of 
the United States of America. 

Mr. President, you will certainly permit me to 
address from this rostrum our greetings and very 
best wishes to your Secretary of State, who to our 
deep regret could not be here today. We know 
with how much interest Mr. Dulles will be follow- 
ing our proceedings. We, on our part, want Mr. 
Dulles to know that we sincerely hope that an 
early recovery will enable him to join us again 
in the work to which he has constantly given his 
untiring devotion. 

Very recently our colleague, the able member 
of the Council for Canada, His Excellency Mr. 
[Sidney] Smith, passed away. We shall greatly 
miss him. May he rest in peace. 

Celebrating today the 10th anniversary of the 
North Atlantic Treaty Organization, it might be 
argued that 10 years is not a very long span of 
time, even in human affairs. And yet, to under- 
stand the full meaning of NATO's 10th anni- 
versary, we will have to look back much further 
in the past. For the importance of our celebra- 
tions does not derive exclusively from those 10 
years, crucial as they may have been. The mean- 
ing of NATO is intertwined with the very mean- 
ing of our civilization. It is against this historic 
background that we should assess the importance 
of this day. 

I would like therefore to stress right at the out- 
set that we in the West, partners in the North 
Atlantic Treaty Organization and members of a 
growing Atlantic Community, are deeply con- 
scious of the bonds of a common heritage and cul- 
ture without which our military arrangements 
would lack their deeper meaning and purpose. 

In fact we are doing more than just protecting 
ourselves. Guarding the liberty of the individual, 
the dignity of man, and our philosophy of life, 

April 20, J 959 


we are, I believe, preserving a unique treasure for 
all mankind. 

Two Worlds — One Free, One Communist 

We all remember how, after the ordeals of the 
Second World War, there was a widespread be- 
lief in the emergence of an organized and stable 
world order, free from want, fear, and war. 

We all know too well what really happened. 
I shall not dwell on the history of the United 
Nations or the many other endeavors to establish 
that one world. Although we in the West worked 
hard, we did not succeed; the vision of the one 
world that we had envisaged has faded away. 
There are now two worlds. 

One — our own — is based on the intrinsic value 
of human personality, on the principle of the free 
and morally responsible hiunan being with rights 
and duties and aspirations which transcend any 
given social order. 

The other world — the Communist world — is 
based on the opposite principle. There, tlie hu- 
man personality does not count and there is 
nothing beyond a social order. 

We could look perhaps with a certain detach- 
ment upon an ideology so alien to oui-s were 
it not for the fact that one of its dogmas is the 
historic mission to spread communism and the 
Communist system over the whole world and by 
all means including, if necessary, direct armed 

Maybe, if public opinion in the years 1945 to 
1948 had been more familiar with this funda- 
mental aspect of communism and if we all had 
had in those days the wisdom that painful ex- 
perience has taught us since, we might have 
avoided some dangerous mistakes and have 
stemmed the tide of Communist imperialism 

However, when our countries gradually began 
to realize the real nature of Soviet expansionism 
of the postwar period, they set to work to achieve 
collective security on a regional basis. NATO 
was bom. 

Internal Defense and External Security 

Looking back on the 10 years elapsed since 
then, we should ask ourselves to what extent 
NATO has been successful. Into what has it 
grown? Wiiat are its prospects? Let me try to 
draw up a balance. 

It seems right to make a distinction between 
our internal defense and our external security. 
First, then, our internal defense. To achieve the 
aims of our alliance the maintenance and building 
up of a decent socioeconomic structure and there- 
by the prevention of civil strife was as urgent 
as the building up of our military forces. 

Indeed social justice and cohesion, sound eco- 
nomics, and stable governments are still the most 
etfective way internally to frustrate communism. 
Let me therefore pay a wann and grateful tribute 
to the United States of America, which, at a cru- 
cial moment, through the imaginative and timely 
intei'vention of the Marshall plan made European 
recovery possible and revived courage and con- 
fidence in Europe. Truly an act of unsurpassed 
statesmanship ! 

It would be hard to overstress the importance 
of the Marshall aid. It is largely due to its bene- 
ficial effects that by now even diehard Commu- 
nists have had to admit that the chances of con- 
quering any of our countries from within have 
become very slight indeed. 

Inter alia, could there be a more convincing ex- 
ample than that of the two social systems con- 
fronting each other in Berlin ? The contrast be- 
tween the Western part, a thriving prosperous 
city with excellent social conditions and fully en- 
joying our Western standards of individual free- 
dom, and the Communist part, devitalized, eco- 
nomically poor, and its citizens firmly controlled 
in all their activities, is indeed striking. This con- 
trast, so damaging to the whole Communist sys- 
tem, is doubtless at the root of the present Soviet- 
provoked crisis round the city. 

In this connection I would like to stress that, 
whatever one's judgment about European eco- 
nomic supernational integration or intergovern- 
mental cooperation — and I think that this judg- 
ment depends only on the degree of cohesion one 
deems necessary for Europe's ultimate survival — • 
it is certain that a strong and united Europe will 
have an added importance in the NATO alliance 
and in the defense of the Western World. 

I submit in this respect that a progressive im- 
plementation of the recommendations, based on 
article 2 of the treaty, of the Committee of Three,^ 
stressing the need of a closer economic coopera- 
tion between the partners, deserves our renewed 

' For text of report of the Committee of Three, see 
iUd., Jan. 7, 1957, p. 18. 


Department of State Bulletin 

and utmost attention both by the appropriate or- 
gans of our organizations as well as by our in- 
dividual governments. 

The other aspect of Western defense — that of 
our external security — shows, without doubt, solid 
achievements. The buildup in Europe of shield 
forces as an essential element in our defense sys- 
tem has in fact greatly contributed to halt the 
Soviet advance at the lines reached in 1949. 

However, there can be no reason for compla- 
cency. Our commanders still lack the necessary 
number of forces to fully implement our concept 
of a forwai'd strategy in Europe. And yet this 
remains their principal task and duty. 

Looking at the present-day situation it is clear 
that our peoples must be prepared to make at least 
tlie same sacrifices for militaiy defense as hitherto, 
because in the foreseeable future there will be no 
security for the free world unless NATO has the 
strength needed to deter aggi-ession and also to 
defeat Soviet efforts to attain their objectives by 
using the political weapon of military threats. 

Developing the Atlantic Community 

The experiences of two world wars have fur- 
thermore demonstrated how strongly the security 
of the West depends on the closest possible co- 
operation between both sides of the Atlantic. The 
manifold bonds, both formal and informal, bind- 
ing us sliould strongly contribute to developing 
what is called the Atlantic Community. 

This could not better be expressed than it was 
done by President Truman, just before the signing 
of the North Atlantic Treaty on the 4th of April 
1949 : ^ 

The nations represented here are bound together by 
ties of long standing. We are joined by a common 
heritage of democracy, individual liberty, and the rule of 
law. These are the ties of a peaceful way of life. In this 
pact we merely give them formal recognition. 

The past 10 years' practice of day-to-day work 
in Council and committees has confirmed this con- 
geniality of spirit and unity of aims. In the prac- 
tical field it has found expression in the endeavors 
to harmonize our foreign policies. However, al- 
though progress has midoubtedly been made iii 
this respect, we cannot be blind to the fact that 
achievements are not yet equal to requirements. 

Altliough the process of harmonizing tlie for- 

= Ibid., Apr. 17. 1949, p. 481. 
April 20, 1959 

eign policies of 15 free and independent nations- 
each with its own responsibilities in so many and 
various fields — is not an easy one, I nevertheless 
thinlv to be justified in saying that our Atlantic 
solidarity should not be confined to the NATO 
area but should also find its expression with re- 
gard to problems in other parts of the world. 

With full understanding for the special respon- 
sibilities which some of our partners carry, owing 
to their powerful position, we on our side of the 
Atlantic feel entitled to a fuller measure of com- 
prehension and support in our efforts to solve our 
Uon-European problems. 

Although our attention is naturally concen- 
trated on problems and areas most directly af- 
fected by the tension and dangers of the East- 
West controversy, we must remain conscious of 
the fact that our Atlantic Community has its place 
as a constructive element in the community of 
all fi-ee nations. In Asia and Africa we, are wit- 
nessing the birth of many new states, of 
which have had close ties with Europe. Some 
have taken a positive stand in the East- West con- 
troversy; others are neutral; a few show Com- 
munist sympathies. Practically all of them be- 
long to the so-called underdeveloped areas of the 
world. Tlieirs is one of the most important bat- 
tlefields of the ideological struggle. 

The relations between Asia and Africa, on the 
one hand, and the Atlantic world, on the other, 
form one of the most vulnerable aspects of the 
free world. They and we have to solve together 
the delicate problem of trying to live and work 
with our differences and in spite of them. At the 
same time communism is continuously intriguing, 
fanning suspicion, and fomenting anti-Western 
movements. The West should face the difficulties 
in those continents with something like the same 
unity of purpose that has characterized its post- 
war policies in Europe. 

Exposing Nature of Communist Menace 

Let us finally not forget the immense moral re- 
sources of our free democratic world embodied in 
the support of an enlightened public opinion. It 
is our duty to expose again and again to our 
peoples not only the true nature of the Soviet 
menace but in particular the basic aims and poli- 
cies of our alliance in clear, straightforward, and 
easUy comprehensible terms. 

Whereas behind the Iron Curtain practically 


only the point of view of the Communist govern- 
ments is bemg heard, the existing freedom of 
press and opinion in our democratic countries 
allows the Soviet Union to appeal directly to our 
public opinion. As I have said before, the 
chances that Communist ideology would upset the 
existing democratic political structure by means 
of persuasion are nonexistent. The use of threats, 
however, particularly in the form of repeated an- 
nouncements by Soviet leaders that a third world 
war may be the result of a Western refusal to 
make certain so-called "reasonable" arrangements, 
might eventually have some effect on public 
opinion unless it is kept well informed of the real 

We should not assume that our peoples are 
wholly inunune against a state of mind to be de- 
scribed as weariness, if we wish to be kind, or as 
defeatism, if we prefer to put it strongly. There 
have always been people questioning the value 
and vitality of our civilization. They are proph- 
ets of woe. Time and time again they will rise 
and tell us that the end of Western civilization is 
near and that defense against inescapable fate is 
useless. Some are honest men, with noble hearts, 
unable to face the idea of conflict and sincere in 
their pacifism. Some, on the other hand, are 
crypto-Communists or fellow travelers. But most 
of them are just frightened men, whose will and 
stamina are not strong enough to endure the con- 
tinuous tensions of the cold war. They have lost 
their will to resist. They are weary, tired, and 
weakened. They say they want peace. They ask 
for defeat. Their mentality comes very near to 

Commimism uses these people. It cajoles them, 
approaches them directly over the heads of gov- 
ernments, and assures them that Western conces- 
sions, withdrawal, disengagement will open the 
way to lasting peace. 

Wlien we appeal to the common sense of public 
opinion in our countries, let us stress that defeat- 
ism has never been able to preserve peace and that 
most disengagement plans are essentially Com- 
munist creations, designed to neutralize Germany, 
to make Western Europe defenseless, and to force 
the withdrawal of allied troops from the Conti- 
nent — in other words, to deprive Europe and the 
alliance of the main pillars on which peace rests. 

As far back as 1853 Marx gave the following 
expert advice on how to handle Russia : "There is 

only one way to deal with a power like Russia and 
that is the fearless way." 

In conclusion I believe that, when looking at 
the world and the place of oiu: Atlantic Commu- 
nity therem, we may without complacency feel 
proud and grateful. History teaches us that 
achievements obtained in age-long exertion can 
only be preserved as long as one is also prepared 
to make the sacrifices necessary for their defense 
and further development. 

If we abide by that lesson and put our faith in 
Him in whose "hand are all the ends of the 
earth," we may look forward with quiet confidence 
to the future. 


In inviting the North Atlantic Coimcil to cele- 
brate, in the very place in which the treaty was 
signed, the 10th anniversai-y of our alliance, the 
United States Government has made a gesture 
which we greatly appreciate. 

The solemn meeting we are holding today is 
thereby given gi-eater luster, and the fidelity to 
which it testifies will thus be still more strongly 
impressed on the minds of our peoples. However, 
our return to Washington after 10 years is not 
merely of symbolical value; it does more than 
aiford us an opportunity of reaffirming our princi- 
ples and our purpose. It also enables us the better 
to recall the conditions which attended the creation 
of our alliance; it invites us to look back at the 
distance already covered and to measure the road 
ahead of us. 

The anniversary we are celebrating, therefore, 
turns our thoughts to the foundation of our union, 
to the results obtained, to the present trend of our 
efforts, and to what is at stuke. These are salu- 
tai-y thoughts not only because they throw light on 
the historical significance of the Atlantic Alliance 
but still more because they make us feel the full 
weight of our responsibility and the importance 
of our tasks. 

Ten years ago the North Atlantic Treaty gave 
practical expression to the miion of 12 countries 
and to their common determination to resist any 
act of aggression. Today this union and this de- 
termination appear to us so natural and so 
necessary that we can no longer conceive for our 
peoples a free and peaceful existence without them. 
Yet we did not seek this union when the war 


Department of State Bulletin 

ended. It was imposed on us by the dangerous, 
unacceptable policy followed by the U.S.S.R. We 
have the right to say so. 

After the war had ended the coimtries of West- 
em Europe turned to the hard tasks of reconstruc- 
tion. The United States and Canada repatriated 
and disbanded their armed forces. For the main- 
tenance of i^eace and security we counted on agree- 
ment between the largest of the victorious 
countries and on the new United Nations Organ- 
ization. You know how these hopes were disap- 
poiiited. By outright aimexations, by military 
pressure, by subversion, the U.S.S.R. has acquired 
dominion over half of Europe; by abuse of the 
veto, it has reduced the United Nations to im- 
potence; finally, it has maintained huge armies 
on a war footing. In 1948 the Prague coup d'etat 
dissipated the last illusions and forced us to look 
facts in the face: The Soviet Union was out to 
conquer the remainder of Europe. It was forcing 
commimism on an increasing number of countries 
against the will of the vast majority of their in- 
habitants. Nothing but the union of the peoples 
who were still free could aiTest this perilous 

Alliance With the United States 

However, even by pooling aU their resources, 
the countries of Western Europe could not hope 
successfully to frustrate the Soviet plans. To 
make up for the disproportion between the 
respective forces, the assistance of the United 
States was required, and such assistance, on ac- 
count of its many political and military implica- 
tions, called for an alliance. 

This alliance with the United States, the 10 
years on which we are now looking back have ac- 
customed us to regard as a basic, pennanent ele- 
ment of Western policy. We are apt to forget 
that, for Americans, it represents what almost 
amounts to a revolution. We are in justice bound 
to recall today the efforts which the United States 
had to make before it could link its fate with that 
of Europe. 

George Washington in his political testament 
had urged his coxmtrymen to contract no alliance 
with the countries of the Old World and to keep 
aloof from its quarrels. Pi-esident Monroe, for 
his part, had also obtained acceptance of the prin- 
ciple of the noninterference of either of our conti- 
nents in the affairs of the other. The United 

States was determined to work in peace at the 
construction of a new world and not to become 
entangled in the centuries-old squabbles of 

Yet twice in a quarter of a century the United 
States has had to intervene by force of arms in 
lands on the far side of the Atlantic. 

We must pay tribute to the men who, during the 
difficult postwar years, directed the affairs of the 
United States. Their country had just accom- 
plished a tremendous effort ; victory had been won, 
Europe liberated. How could the public recognize 
the need for new commitments and further sacri- 
fices for the benefit of a continent so far away? 
It is to the honor of the American nation and its 
leaders that they should at that time have been 
so fully aware of what the new situation de- 
manded and that, since then, they should so 
resolutely have accepted the responsibilities it 

Aid to Greece and Turkey, together with the 
Marshall plan, marked the initial phase of this 
new policy — a vital phase for the recovery of the 

Nevertheless, the conclusion of an alliance 
while peace prevailed was very different from sup- 
plying funds, even on a vei-y generous scale. It 
meant a partial deviation from an exclusively in- 
dividualistic policy; it implied the acceptance of 
immense risks and responsibilities. It involved, 
almost of necessity, sending overseas large con- 
tingents of armed forces. Only at this price could 
the safety and freedom of Europe be secured. 
However, it was also the price which had to be 
paid for the safety and freedom of America, for 
whom the establishment of Communist domina- 
tion on the opposite side of the Atlantic would 
have constituted a mortal danger. Finally, it was 
the price of peace, which could not long have 
withstood the combined effects of Soviet expan- 
sionism and the disproportion between the forces. 

In forming our alliance, what we had in mind 
for our countries was peace and security, but to 
achieve these aims it was not enough to proclaim 
our desire for union and our solidarity in the face 
of the peril. We had to give effect to them by a 
continuous effort: Common defenses had to be 
built up ; we had ceaselessly to maintain the unity 
of views and action without which we would have 
been unable to thwart the designs of our adver- 
saries; finally, we had to increase the powers of 

April 20, J 959 


resistance of our conununity in the political, eco- 
nomic, and social fields and to arrange between 
ourselves, mainly in Europe, for closer cooper- 

Success of the Alliance 

After a long haul we perceive today that all 
these conditions have been fulfilled, wholly or in 
part. That explains the success that has attended 
our undertaking. 

Our first task was to insure joint defense — a 
tremendous task owing to the gigantic require- 
ments to be met, the poverty of our resources, the 
constant revolutionary changes in armaments. 
The alliance succeeded in finding an acceptable 
solution to tliis difficult problem : Tlie combina- 
tion of a shield protecting Europe with the stra- 
tegic nuclear weapon has restored, between East 
and West, the balance of forces. Our defensive 
system is now sti'ong enough to deter any act of 

The next task was maintenance of our unity. 
Since the establishment of the alliance the Soviet 
Union can no longer hope to subjugate the West- 
em countries one after the otlier by military pres- 
sure and subvei-sion. It lias therefore sought to 
acliieve its ends, which are unchanged, by other 
means : It has tried to divide us, to undermine our 
resistance, to weaken and outflank tlie Western 
positions in other parts of the world. To this vast 
offensive, jjureued with tactics ceaselessly renewed, 
we have been able to reply, largely by intensified 
political cooperation. Thanks to permanent con- 
sultation in the Council, the members of the alli- 
ance have upset the maneuvere designed to divide 
us and have insured the unity of their views and 
action on all the major issues brought up by the 

Then, too, the NATO countries, during the past 
10 years, have built up a strong home front. 
Economic progress has raised living standards 
and, by and large, eliminated social unrest. Com- 
munist influence has very largely subsided. 

But to insure even greater success for our under- 
taking it was essential to base it on an even closer 
union of these European countries whose diver- 
gencies and conflicts are at the root of our prob- 
lems. The alliance itself was a constant reminder 
of the necessary solidarity, while at the same time 
producing the conditions of security propitious 

for new and fruitf id experiments in cooperation. 
For instance, it was within the NATO frame- 
work that it proved possible to solve the problem 
of obtaining Germany's participation in joint de- 
fense; it is behind our sheltering shield that we 
have been able to start the construction of a united 
Europe ; it is largely due to the new political con- 
sciousness thus developed that the major accom- 
plishment of reconciling France and Gennany has 
proved possible. NATO has, to a very high 
degree, made these changes possible. Without 
them, the Atlantic Alliance would not be what it 
is. It would lack the great strength it derives 
from a Europe which has regained its self- 
confidence and whose vital forces are all harnessed 
to the common task. 

Preserving the Spirit of the Alliance 

The conditions which have enabled us so far to 
preserve peace and security are also the only ones 
whereby they can be preserved in the future. The 
success of the alliance will be borne out in the 
coming years if we pursue the task in which we 
are engaged in the same spirit of unity and with 
the same desire for effective cooperation. 

We cannot afford to relax in our efforts. On the 
contrary, circumstances demand that we should 
be even more vigilant. The U.S.S.E. is ceaselessly 
strengthening its militai-y power. The arena of 
the contest between the West and the Communist 
bloc is now worldwide. Furthermore, Soviet 
diplomacy is again launching a large-scale politi- 
cal offensive against Europe itself. By again rais- 
ing the issue of the status of Berlin and by han- 
dling the German question as it has, Moscow is 
playing a game in which the ultimate stake is the 
very existence of our European political institu- 
tions and defense system. 

We must therefore, even more resolutely than 
before, intensify our collective defense effort, 
strengthen our political solidarity, and extend our 
cooperation to all fields in which our common in- 
terests are involved. 

This firmness, this resolve to defend our posi- 
tions and our rights, must never blind us, however, 
to the need for seeking positive solutions to the 
problems confronting us or lead us to forget that 
negotiation is the only means of reaching them. 
We must therefore make a constant effort to be 
unbiased and understanding. We must cast about 
for honorable compromises. This is the right 


Department of State Bulletin 

way to remain true to the spirit of the alliance 
and to the basic principles of our civilization. 

The collective effort vre have made has already, 
in the space of 10 years, radically altered the 
character of the Atlantic Alliance. From being 
a mere defense pact, it has gradually become the 
core of a union without precedent within which 
15 nations are doing their utmost jointly to pro- 
tect their vital interests. It constitutes, in a world 
in the grip of fear and confusion, the essential 
factor of equilibrium and peace. While defend- 
ing our countries, it is at the same time defending 
the principles of justice and freedom which are 
the heritage of our civilization and which, 
throughout the world, are acknowledged by many 
to be their own. 

The Atlantic Alliance is therefore much more 
than a fortuitous political combination created 
to meet a passing need. 

The crucial importance of the stakes, the iden- 
tity of principles and interests, the links forged 
every day by our collective task, all conduce to 
the development among us of a true community. 
This community must draw greater strength, 
within the legal framework of our alliance, from 
closer cooperation and a more acute awareness of 
our interdependence. It alone can enable us to 
cope successfully with the obstacles on the road 

Let us hope that later the ominous horizon 
around us will clear. But even in a world at 
peace, with no further need of alliances, our com- 
munity would outlive, possibly in a different 
form, the circumstances to which it owes its birth, 
for it gives concrete expression to the deep unity 
underlying its ideals and civilization and to the 
solidarity of the essential and permanent interests 
of the peoples bound together by the North At- 
lantic. Thus the union of the countries of the 
West, firmly welded together by our patient 
efforts, would endure as one of the necessary bases 
of a universal organization dedicated to peace. 


1. The fifteen Foreign Ministers of the North Atlantic 
Council ended their meeting in Washington on 4th April, 
1959, the 10th Anniversary of the signing of the Treaty. 

2. The Council discussed the present international sit- 
uation, in particular the question of Berlin and the forth- 
coming negotiations in Geneva relating to Germany. It 
also reviewed the progress of the Alliance during its first 

ten years, its present state, and the prospects of future 

3. The Council received a report from the four Powers 
with special responsibilities for the German question on 
the present state of their thought in regard to the prob- 
lems which will be discussed during the forthcoming 
negotiations with the Soviet Union.^ A full discussion 
took place on the basis of this report. The points of 
view expressed will be taken into account during the 
consultations which will follow during the weeks to come. 

The Council expressed its full agreement on the broad 
lines of the policy to be pursued. Whilst stating its desire 
to see outstanding problems solved by negotiation, the 
Council confirmed its unanimous determination to main- 
tain the freedom of the people of West Berlin and the 
rights and obligations of the Allied Powers, as expressed 
in the Council's declaration on Berlin of 16th December, 

4. In a review of the political situation in other parts 
of the world, the Council discussed the various forms 
of pressure which international communism continues 
to exercise on the Free World. This pressure represents 
a threat not only to member nations but also to many 
other free countries, including some whose independence 
has only recently been established. 

5. In considering the development of the Alliance and 
its future prospects, the Council agreed that the basic 
reasons which led to the signature of the North Atlantic 
Treaty in 1949 remain valid today. The North Atlantic 
Alliance, which has succeeded in maintaining peace and 
in safeguarding the security of member countries during 
the past ten years, remains an essential condition of their 
freedom. For this reason, and having in mind the present 
dangers, the Ministers reaffirmed the determination of 
their Governments to maintain their common defence 
effort. At the same time, they endorsed the view that 
the principle of Interdependence must be further de- 
veloped in order that the best use may be made of the 
available resources for defence. 

6. In this connection, the Council had before it a report 
by the Secretary General on the working of the Alliance, 
in which he stressed the need to consolidate the security 
of the West against the world-wide challenge with which 
it is faced. The Council endorsed the Secretary General's 
call for a further impetus to be given to the work of the 
Alliance, and recognised the need for increased collective 
action in regard not only to political consultation and 
the common defence effort but also to certain aspects of 
economic, scientific, cultural and information work. 

7. In conclusion, the Council recognised that the At- 
lantic Alliance has proved its vital importance during 
the past ten years and has helped to stimulate the sense 
of community amongst member nations. The Council 
expressed its confidence that the Alliance will continue 
to develop as the indispensable basis for the security of 
the Atlantic peoples and the defence of world peace. 
It believes also that the unity of action and policy which 
the Alliance makes possible is the best guarantee of 

' See p. 554. 

° For text, see Bulletin of Jan. 5, 1959, p. 3. 

April 20, 1959 


successful negotiation witli the Soviet Government and 
of any genuine resolution of differences betvs'een the East 
and West. 


Press release 228 dated March 27 

The U.S. Eepresentative to the Ministerial 
Meeting of the North Atlantic Council scheduled 
to be held at Wasliington, D.C., April 2-4 will be 
Acting Secretary of State Cliristian A. Herter. 

Senior members of the U.S. delegation are : 

Loftus B. Becker, Legal Adviser, Department of State 

Andrew H. Berding, Assistant Secretary of State for Pub- 
lic Affairs 

W. Randolph Burgess, U.S. Permanent Representative to 
the North Atlantic Treaty Organization 

Philip J. Farley, Special Assistant to the Secretary of 
State for Disarmament and Atomic Energy 

John N. Irwin II, Assistant Secretary of Defense for In- 
ternational Security Affairs 

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

Fredericli E. Nolting, Jr., Deputy U.S. Permanent Rep- 
resentative to the North Atlantic Treaty Organization 
and European Regional Organizations 

G. Frederick Reinhardt, coordinator. Counselor, Depart- 
ment of State 

Gerard C. Smith, Assistant Secretary of State for Pol- 
icy Planning 

The delegation also includes the following: 

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

William M. Gibson, Director, Office of International Con- 
ferences, Department of State 

Martin J. Hillenbrand, Director, Office of German Affairs, 
Department of State 

Robert H. Knight, Deputy Assistant Secretary of Defense 
for International Security Affairs 

Geoffrey W. Lewis, U.S. Mission to the North Atlantic 
Treaty Organization and European Regional Organiza- 

B. E. L. Timmons, Director, Office of European Regional 
Affairs, Department of State 

Letters of Credence 


The newly appointed Ambassador of Pakistan, 
Aziz Ahmed, presented his credentials to Presi- 
dent Eisenhower on March 23. For texts of the 
Ambassador's remarks and the President's reply, 
see Department of State press release 212. 

Western Foreign Ministers Meet 
To Discuss German Problem 

Following are two statements regarding a series 
of meetings on the German proile7n held at Wash- 
ington, D.G., on March 31 and April 1 hy France, 
the Federal Republic of Germany, the United 
Kingdom, and the United States. The first ses- 
sion was attended by Maurice Couve de Murville, 
Foreign Minister of France, Selmyn Lloyd, For- 
eign Minister of the United Kingdom,, and Chris- 
tian A. Herter, Acting Secretary of State of the 
United States. They were joined in subsequent 
sessions by Heinrich von Brentano, Foreign Min- 
ister of the Federal Republic of Germany. 


The Foreign Ministers of France and the 
United Kingdom and the Acting Secretary of 
State of the United States met this afternoon 
from 2 :50 to 4 :35 for a discussion of the problem 
of Germany including Berlin. Among other 
topics the Ministers discussed the March 30th 
reply of the Soviet Union. The three Ministers 
noted with satisfaction the Soviet acceptance of 
their proposals ^ to hold a foreign ministers meet- 
ing in Geneva beginning May 11 provided this is 
acceptable to the Swiss Government. They re- 
called that in their notes they had made clear 
their position with respect to the relationship of 
a foreign ministers conference to a summit con- 
ference and also regarding the question of Ger- 
man advisers. 

Following a short recess the Foreign Ministers 
of the Federal Kepublic of Germany, France, the 
United Kingdom, and the Acting Secretary of 
the United States met to discuss further the prob- 
lem of Germany including Berlin. Among other 
topics they began a review of the report^ of the 
quadripartite Working Group which met in Paris 
from March 9th to 21st.* 

^ Read to news correspondents on Mar. 31 by Andrew 
H. Berding, Assistant Secretary of State for Public Affairs. 

' For an exchange of notes between the United States 
and the Soviet Union, see Bulletin of Apr. 13, 1959, 
p. 507. 

' Not printed. 

* For background, see Bulletin of Mar. 2, 1959, p. 297, 
and Mar. 23, 1959, p. 406. 


Department of Slate Bulletin 

Following a comprehensive cordial exchange of 
views the Ministers agreed to pursue their con- 
versations further tomorrow [April 1]. 

atlantic submarine cables, together with the text 
of a U.S. aide memoire of February 28. 


Press release 240 dated April 1 

The Foreign Ministers of France, the Federal 
Eepublic of Germany, and the United Kingdom, 
and the Acting Secretary of State of the United 
States have concluded a series of useful meetings 
in Washington March 31 and April 1. They re- 
viewed the report of the quadripartite Work- 
ing Group, which met in Paris from March 9 
to 21, as a basis in preparing for the foreign 
ministers conference with the Soviet Union sched- 
uled to be held in Geneva beginning May 11. 
They provided guidance to the quadripartite 
Working Group for its next series of meetings 
scheduled to begin in London on April 13. The 
Ministers decided on the form of a report which 
will be made to the NATO Council Thursday 
afternoon [April 2].^ 

The Ministers conducted their discussions con- 
cerning Berlin on the basis of their declaration 
contained in the four-power communique on Ber- 
lin issued in Paris December 14, 1958 ^ — with 
which the North Atlantic Council associated itself. 

The Ministers agreed to meet again in Paris 
beginning April 29 in further preparation for the 
conference with the Soviet Union. A report on 
the substance of those discussions will be made 
to the North Atlantic Council. All these prep- 
arations are based on a sincere desire to negotiate 
constructively with the Soviet Union in the in- 
terests of world peace. 

U.S. and U.S.S.R. Exchange Notes 
on Damage to Submarine Cables 

Following is an excfmnge of notes between the 
United States and the Soviet Union concerning 
damage done from February 21 to 25 to five trans- 


Press release 211 dated March 23 

"A Ministerial Meeting of the North Atlantic Council 
was held at Washington, D.C., from Apr. 2 to 4. 
' For text, see Bulletin of Dee. 29, 1958, p. 1041. 

The Embassy of the United States of America 
refers to the Ministry's note No. 17/OSA, dated 
March 4, 1959 concerning recent breaks in certain 
transatlantic submarine telecommunication cables 
and the consequent visit to the Soviet trawler 
Novorossiisk by a boarding party from the U.S.S. 
Roy 0. Hale, which was the subject of the Em- 
bassy's aide memoire of February 28, 1959. 

The Ministry's note states in substance that the 
Government of the Union of Soviet Socialist Re- 
publics (1) in accordance with information avail- 
able to it denies that the Soviet trawler Novoros- 
siisk was responsible for the reported breaks in 
the transatlantic submarine cables; (2) that in 
its opinion the United States naval vessel U.S.S. 
Roy 0. Hale had no reason to detain and inspect 
the Soviet trawler Novorossiisk; and (3) that 
based on articles which have appeared in the 
American press concerning the purpose of the 
presence of a Soviet fishing vessel in this region 
the detention of the, Soviet trawler was under- 
taken with "provocative purposes". The note 
concludes that "The Soviet Government protests 
against the detention and inspection of the Soviet 
fishing trawler Novorossiisk by the American 
naval vessel and anticipates that the Government 
of the United States will take all necessary meas- 
ures to prevent further such completely luijus- 
tified actions with respect to Soviet fishing vessels 
engaged in the fishing trade in waters of the open 

For the reasons set out hereinafter the United 
States Government considers there is no basis for 
a protest in this case and the Soviet protest is 
therefore rejected. Furthermore, the United 
States Government is surprised that the Soviet 
Government should make a charge that the deten- 
tion of the Soviet trawler was for "provocative 
purposes" with no other basis than apparent irri- 
tation at articles in American newspapers specu- 
lating on the purposes of Soviet trawlers in cer- 
tain waters. As the Soviet Government well 
knows, the American press is free within legal 

'Delivered on Mar. 23 to the Soviet Ministry of For- 
eign Affairs by the American Embassy at Moscow. 

April 20, J 959 


limits to publish its opinions and tliese do not 
engage the responsibility of tlie Government. 
Charges based on such flimsy support are not 
themselves calculated to further friendly relations. 

The facts of the matter are as follows. 

During tlie period February 21 tlii'ough Febru- 
ary 25, 1959, communications were disrupted by 
damage to five transatlantic cables in the New- 
foundland area located within a rectangle 
bounded by the following coordinates: latitude 
49°24' N., "longitude 50°12' W.; latitude 49°32' 
N., longitude 49°48' W.; latitude 50° 13' N., lon- 
gitude 51°00' W.; latitude 50°22' N., longitude 
50°36' W. 

The first break occurred on February 21, 1959, 
at 10 :43 a.m., eastern standard time, in the trans- 
atlantic cable owned and oi^erated in part jointly 
with a Canadian company by the American Tele- 
phone and Telegraph Company, a United States 
corporation having its head office at New York, 
New York. The cable has its west terminus in 
Newfoundland and the east terminus in Scot- 
land, and is ultimately connected with the United 
States of America by submarine cable and radio 

The second break occurred on February 24, 
1959, at 2:20 p.m., eastern standard time, in the 
transatlantic cable 1-VA, connecting Newfound- 
land and Ireland. The third break occurred on 
February 25 at 2:50 a.m., eastern standard time, 
in the transatlantic cable 3-PZ connecting New- 
foundland and England. The fourth cable break 
occurred on February 25 at 11 :20 a.m., eastern 
standard time, in cable 2-VA connecting New- 
foundland with Ireland. The fifth break oc- 
curred on February 25 at 4:20 p.m., eastern 
standard time, in the transatlantic cable 4-PZ 
connecting Newfoundland and England. These 
four submarine cables connect ultimately with the 
United States, and are owned and operated by 
The Western Union Telegraph Company, a United 
States corporation with its head office at New 
York, New York. 

Subsequent examination showed that there were 
a total of twelve breaks in the five cables. Nine 
of tliese were tension breaks and three were man- 
made cuts severing the cables. 

Aerial obsen/ation conducted by the American 
Telephone and Telegi'aph Company sighted the 
Soviet trawler Novorossiisk IlT-99 on the mom- 


ing of Febiniary 25, 1959, in the approximate po- 
sition latitude 49°34' N. and longitude 50°0' W., 
steaming on a southerly course at a speed of about 
three knots. No other vessels were visible at the 
time in the immediate vicinity. The aircraft 
succeeded in dropping a note on the deck of the 
trawler Novorossiisk advising it that it had cut 
four cables and requesting that it cease trawling 
in the area. 

The Government of the United States, acting 
under the provisions of Article X of the Conven- 
tion for the Protection of Submarine Cables, of 
1884,° to which both the United States and the 
Union of Soviet Socialist Republics adhere, and 
also in confoi-mity with United States law (47 
United States Code, Section 26), implementing 
the convention, on Febraary 25, 1959, dispatched 
the United States radar picket escort U.S.S. Roy 
O. Hale to the area to investigate the reported 
breaks in the submarine cables. On February 
26, 1959, about 11 :55 a.m., eastern standard time, 
the Commander of the U.S.S. Roy 0. Hale sent 
a party consisting of one officer and four enlisted 
men, without arms, aboard the Soviet trawler 
Novorossiisk. At the time of the visit the trawler 
was in position latitude 48°26' N., longitude 
49°10' W. There were no other ships in the 
immediate vicinity. 

The last four cable breaks referred to above 
were all located witliin 14 miles of each other and 
were each within a 12-mile radius of the observed 
position of the trawler Novorossiisk on February 
25, 1959, with the nearest two breaks no more than 
five miles distant. The five reported cable breaks 
all occurred witliin a radius of 52 miles of one 
another. (All references are to nautical miles.) 
A line joining the last four reported positions of 
the breaks is a straight line with the breaks oc- 
curring in succession in the direction of approxi- 
mately 160° T. A vessel in that vicinity trawling 
in a general southerly direction during the period 
in question would have been in the locations 
necessai-y to cause the breaks. 

The boarding officer, communicating by means 
of French through an interpreter, duly infoimed 
and explained to the master of the trawler No- 
vorossiisk the purpose of his visit and his author- 
ity to do so under the provisions of the convention 

' 34 Stat. 989 ; 25 Stat. 1424. 

Department of State Bulletin 


of 1884. He examined, with the consent and 
acquiescence of the master, the papers of the 
trawler which appeared to be in order. 

The boarding oiEcer found that the latitude 
and longitude which the trawler Novorossiisk re- 
corded in her journal for the previous days' po- 
sitions also showed her to have been in the im- 
mediate vicinity of all five cable breaks. Upon 
request, the master produced the message dropped 
on the deck of the trawler on the previous day 
from the aircraft of the American Telephone and 
Telegraph Company. On the basis of the fore- 
going evidence, the boarding officer concluded that 
an examination of the fishing gear and equipment 
was justified to determine whether the trawler 
was capable of causing the cable breaks. 

The unarmed boarding officer, with the consent 
of the master of the trawler, observed without 
deep examination, on the upper main deck of the 
trawler only, the trawling equipment and fishiug 
gear. The boarding officer noted that the trawl- 
ing equipment was of the type for deep sea fishing, 
and was in general fairly new, with the exception 
of the otter boards and net discs which were well 
worn and in poor condition. The trawling cable 
was estimated to be about 300 fathoms in length, 
sufficiently long enough to drag the gear on the 
bottom at the depth in the area — about 180 fath- 
oms. Two broken sections of trawling cable each 
about 60 feet in length were observed wrapped 
around the hatch on deck. The four ends of 
these cables were shredded and frayed and ap- 
peared to have parted as a result of a sudden 
strain such as could have been caused by snagging 
the gear. These sections are identical in type, 
age, and condition with the trawling cable. 
Some of the fish observed lying frozen on the deck 
were of the bottom type. 

The visit on board the trawler lasted about 70 
minutes, and was completed at 1 :05 p.m., eastern 
standard time. At the time of his departure the 
boarding officer made the following entry in the 
trawler's journal : 

1.3-j.j — The Novorossisk (PT-99) motor ypssel has this date 
been visited by me at Longitude 49°10' W, Latitude 48°26' 
N and at 1355 (time + 3) 26 February 1959. I have ex- 
amined the ships papers and found them to appear regu- 
lar, but the presence of a message drop regarding cut 
"submarine" cables signed by Capt. R. Cooper, A/0 CF- 
CRP indicated further investigation of fishing equipment 
required. All i>apers sighted bear my signature. The 

April 20, 1959 

502267—59 3 

Captain consented to such further inspection but appeared 
dubious of the number of men to inspect. 

/s/ D. M. Sheely 
Lt, U.S. Navy 
1440 — Completed Inspection and departed. 

/s/ D. M. Sheely 
Lt, U.S. Navy 

A preliminary report emanating from the cable 
repair ship Lord Kelvin which has since repaired 
the first broken cable states that the eastern por- 
tion of the damaged cable had been badly scraped 
and scuffed for about a mile east of the break. The 
cable had been severed by cutting. The teclmical 
opinion is that such evidence indicates that a 
trawler had picked up the cable with its drag, 
then having pulled it on deck, had cut it to release 
the nets. 

The protection of submarine telecommunica- 
tions cables on the high seas constitutes an 
international obligation. The locations and pres- 
ence of the transatlantic submarine cables that 
have been cut are widely known among world 
fishing and maritime circles. They are shown 
and marked on United States admiralty and navi- 
gation maps which are available to the general 

The above-stated record of events shows that, 
contrary to the assertions and charges made in 
the above-mentioned note of the Union of Soviet 
Socialist Kepublics, the visit to the Soviet trawler 
Novorossiisk under the circumstances shown was 
entirely justified and was in every respect in ac- 
cordance with international law and applicable 
treaty provisions. 

The Government of the United States is satis- 
fied that the evidence in its possession raises a 
strong presumption that the master and crew of 
the Soviet trawler Novorossiisk have violated Ar- 
ticle II of the convention of 1884 above-men- 
tioned which provides that "the breaking or in- 
jury of a submarine cable, done wilfully or 
through culpable negligence, and resulting in the 
total or partial interruption" of telegraphic com- 
munication shall be a punishable offense. 

Article "VIII ei seq. of the convention place 
the responsibility for the repression of these vio- 
lations of the convention and trial and punish- 
ment of the violators on the Soviet Union. 
Therefore, the Government of the United States 
calls upon the Government of the Union of So- 
viet Socialist Republics to discharge its intema- 


tional obligations as summarily as its laws and 
regulations will permit, by promptly making such 
investigations and taking such measures as are 
necessary to punish those who may be foimd to 
be guilty. 

The Government of the United States reserves 
the right to make such claims for damages as may 
be found to be warranted. 

The Goverrmient of the United States further 
expects that the Government of the Union of So- 
viet Socialist Republics will take effective meas- 
ures to prevent Soviet fishing trawlers on the 
high seas from damagmg or cutting submarine 
cables in the future. 

Tlie Government of the United States further 
states that it will continue to fulfill its interna- 
tional obligations with regard to the protection 
of submarine cables. 


UnoflBclal translation 
No. 17/OSA 

The Ministry of Foreign Affairs refers to the aide 
memoire of the United States Embassy of February 28 
concerning the detention and inspection of the Soviet 
trawler Noi-orossiisk on February 26 by an American 
naval vessel and considers it necessary to declare the 
following : 

According to information available to competent So- 
viet organs the Soviet trawler Novorossiisk was engaged 
in fishing in the open sea in the Northern Atlantic Ocean 
and caused no damage of any kind to the underwater 
telegraph or telephone Trans-Atlantic cables. Reports 
concerning this question appearing in the American press 
are figments of the imagination. 

Consequently, the American mival vessel R. O. Hale 
had no reason for detaining and inspecting the afore- 
mentioned Soviet trawler. Attention must be called to 
the fact that these actions of the American authorities 
were undertaken specifically with respect to a Soviet 
vessel at a time in the region of Newfoundland when 
there were hundreds of vessels from other countries en- 
gaged in fishing and, as reported, many of which have 
more than once damaged Trans-Atlautic cables. 

The Soviet Government cannot ignore the fact that 
in connection with the above-indicated actions of the 
United States authorities numerous reports have ap- 
peared in the American press containing various anti- 
Soviet fabrications concerning the purpose of the pres- 
ence of a Soviet fishing vessel in this region. These 
articles in the American press are of such a kind that 
the impression is unavoidable that all this venture with 
the detention of the Soviet trawler was undertaken with 
provocative purposes. Not the least among these pur- 
poses is an attempt to strain Soviet-American relations. 

It is impossible in this coimection not to draw attention 
to the responsibility which the American Government 
takes upon itself by taking such steps. 

The Soviet Government protests against the detention 
and inspection of the Soviet fishing trawler Novorossiisk 
by the American naval vessel and anticipates that the 
Government of the United States will take all necessary 
measures to prevent further such completely unjustified 
actions with respect to Soviet fishing vessels engaged in 
the fishing trade in waters of the open sea. 


The Embassy of the United States of America 
lias been instructed to inform the Ministry of For- 
eign Affairs of the Union of Soviet Socialist 
Republics of the following. 

Between February 21-25, 1959, four telegraphic 
and one voice transatlantic cables were damaged 
and put out of service. Aerial investigation dis- 
closed that the Soviet trawler Novorossiisk No. 
RT-99 was in the area of these cable difficulties. 

In accordance with the "Convention for Protec- 
tion of Submarine Cables" of 1884, to which the 
Soviet Union and the United States are parties, 
a U.S. naval vessel put a visiting party on board 
the Novorossiisk on February 26 to investigate 
whether the trawler had violated the Convention. 

After discussion with the trawler Captain and 
examination of the log, the boarding officer from 
the U.S.S. R.O. Hale made an appropriate entrj- 
in the journal of the trawler as required by Arti- 
cle X of the Convention and the ^asiting party 
left the vessel. The trawler's log indicated that 
the ship had been in the area of cable damage at 
the time of the last service interruption. It is 
understood that the trawler proceeded on its way 
without delay. 

A cable repair ship is en route to the area of 
cable damage for final investigation and repair. 

Embassy of the UNrrED States of America, 
February 28, 1959. 

King Hussein I of Jordan 
Visits United States 

The Department of State announced on March 
19 (press release 204) that King Hussein I of the 
Hashemite Kingdom of Jordan would arrive at 
Washington on March 23 for a 5-day informal 



Department of Stafe Bulletin 

visit. His schedule in Washington included in- 
formal discussions with President Eisenhower, 
Acting Secretary Herter, and other Government 

The King's visit to Washington was part of 
an unofficial tour of the United States which began 
in Hawaii on March 17. He left Washington on 
March 28 to continue his tour and left New York 
for London on April 17. 

Asian Economic Development 

hy Douglas MacArthur II 
Ambassador to Japan ^ 

Kelations between Japan and the United States 
rest on a solid foundation of sovereign equality, 
common objectives, and mutual interest in many 
fields. The most basic self-interest of each country 
calls for a world where there is peace with justice 
and also increasing prosperity which will help to 
raise living standards. We agree broadly on how 
that kind of world is to be achieved. Today 1 
wish to talk about one of the many specific issues 
on which we have an identity of interest: that is 
Asian economic development, which will serve to 
promote both peace and progress. 

From my conversations with many Japanese 
friends I believe that the American and Japanese 
Governments and peoples have the same under- 
standing of the main aspirations of the free Asian 
peoples. Both our countries know that these 
peoples seek to maintain and to strengthen their 
newly won independence for which they struggled 
so courageously. We also know that our free 
Asian friends strive earnestly for improved stand- 
ards of life. These two closely linked aspirations 
can be attained onlj' if the Asian countries achieve 
substantial economic progress and development. 

Both the United States and Japan desire 
strongly that, as a matter of enlightened self-in- 
terest, the peoples of free Asia achieve their twin 
aspirations of strengthening their independence 
and providing a better way of life for their 
peoples. For neither of us can be secure while the 
independence of the free Asian nations is in jeop- 
ardy. Thanks to the regional and bilateral secu- 
rity arrangements which now exist in the area and 

'Address made before the Naigai Josel Chosakai (Re- 
search Institute of Japan) at Tokyo, Japan, on Feb. 26. 

the defense efforts of the free Asian states them- 
selves, the external military threat has been re- 
duced and no aggressor can hope for a cheap and 
easy victory. 

Benefits of Asian Economic Progress 

The chief and present threat to independence in 
Asia is not an external military threat. It is the 
danger of unrest and subversion, directed from 
without, in countries where free governments seem 
unable to raise the material standards of living of 
their peoples. That is why Asian economic prog- 
ress is so important for the peoples of free Asia, 
for the national interests of both Japan and the 
United States, and for the free world generally. 

For Asian economic progress will do more than 
benefit just the Asian countries directly concerned. 
The well-being of Americans, Japanese, and other 
free peoples will be substantially advanced by such 
economic growth in free Asia. This is particu- 
larly true of Japan. Because of geography and 
special factors Japan and free Asia are in many 
respects complementary. Free Asia can supply 
many of the commodities and raw materials which 
are essential for Japan's industries. On the other 
hand, Japan, with its special industrial capabili- 
ties, can supply much of the industrial machinery, 
capital goods and equipment, and technical know- 
how which are particularly important to free 
Asian countries in their present period of in- 
dustrial and economic development. 

Even now Japan sells more than 30 percent of 
its exports to free Asian countries. One of the 
principal factors preventing an expansion of those 
exports is the lack of capital and the low level of 
income that characterize most Asian countries. 
Until there is added capital and know-how and 
until incomes are raised, the potential of this vast 
market, which numbers more than 600 millions of 
people, can never be realized. In 1957 the value 
of Japan's exports to free Asia amounted, on a 
per capita basis, to about $1, or 360 yen, worth of 
goods to each individual inhabitant of that great 
area. There is no reason why this should not 
double or triple in the next 10 to 20 years in view 
of the needs of these comatries for both industrial 
equipment and goods. Certainly the needs are 
there. And if the economies of free Asia expand 
and flourish, then a large and healthy growth of 
trade will inevitably follow. 

Thus ccmsiderations of security and of econom- 

AprW 20, 7959 


ics cause both Japan and America to have eco- 
nomic development in Asia as a major objective. 
And, of course, we share a sentiment of sincere 
friendship toward these new countries that are 
struggling against such heavy odds to make inde- 
pendence a success. We cannot make policies on 
the basis of sentiment, to be sure, but sentiment 
can fortify policies arrived at along the more 
carefully calculated lines of enlightened self- 

It is no wonder, then, that Japan and the 
United States are associated in a number of ac- 
tivities for the purpose of fostering economic 
development. It is useful to run over the list, 
for it is an impressive one. 

U.S.-Japan Multilateral Economic Cooperation in 
Asian Development 

We are members together, with other free coun- 
tries, in a number of multilateral organizations 
devoted to economic and technical assistance in 
the newly developing countries. 

These organizations include the International 
Bank for Reconstruction and Development, which 
already has loaned over $800 million to the coun- 
tries of South and Southeast Asia. The Bank is 
I he basic multilateral development institution. 
The United States alone has subscribed over $3 
billion to the Bank's capital. Its accumulated 
experience in development lending is a vital free- 
world asset. The Bank directors have recently 
proposed to increase its authorized capital.^ Both 
our countries have strongly endorsed this pro- 
posal, which will permit an increase in lending to 
meet the growing capability of developing coun- 
tries to finance hard-currency loans for basic 
development projects. 

The United Nations Technical Assistance Pro- 
gram is another of the multilateral undertakings 
in this field. It now has added to it the United 
Nations Special Fund, which will allow an en- 
largement of U.N. technical assistance work. The 
United States will contribute up to 40 percent of 
the cost of these programs during 1959. The 
Special Fund will undertake special surveys of 
natural resources, and it will be able to equip 
and also to help to staff training institutions. 

' For background, see Bulletin of Feb. 23, 1959, p. 279 ; 
for U.S. statements in support of legislation to increase 
the Bank's capital and the U.S. subscription, see ihid., 
Mar. 30, 19.59, p. 445. 


Japan and the United States also work together 
in the Economic Commission for Asia and the Far 
East, which has done so much to increase under- 
standing of Asia's economic problems. ECAFE, 
as it is known, is presently carrying out as a 
special project a survey of the great Mekong 
River, which drains a vast area of Thailand, Laos, 
Cambodia, and Viet-Nam and which eventually 
will be tamed and harnessed for the lasting bene- 
fit of the peoples of those countries. One of the 
world's most famous dam builders, Yutaka Ku- 
bota of Japan, has recently returned from the 
survey of the Mekong Valley, a survey that is 
being financed by a nmnber of ECAFE countries, 
including Japan and the United States. 

Japan and the United States both conduct 
teclinical and economic assistance programs under 
the general aegis of the Colombo Plan. The 
Colombo Plan is of free Asian inspiration, and 
both Japan and the United States are members. 
It is an admirably conceived organization for 
further economic cooperation. It provides a 
multilateral forum for discussion and interchange 
of views and it takes account of common interests, 
while at the same time it permits each member to 
make separate decisions about its own assistance 
or development program. Both our Govern- 
ments look on it as a highly useful organization. 
Last year President Eisenhower showed his deep 
personal interest in the Colombo Plan by attending 
its annual meeting in Seattle.^ 

U.S.-Japan Bilateral Cooperation for Asian Eco- 
nomic Development 

So far I have cited arrangements under which 
Japan and the United States pool their resources 
and skills with those of other free-world nations 
to aid the newly developing coimtries. We also 
work together on a joint Japanese-American 
basis as well. 

Since 1954 our International Cooperation Ad- 
ministration has joined with the Japanese Gov- 
ernment in financing the costs of technical training 
in Japan for nationals from other Asian com^tries. 
We call this the third-country training program. 
Our ICA missions in South and Southeast Asia 
work with the local governments to select qualified 
people for training in Japan. The ICA pays 
their international travel and maintenance ex- 
penses, and the Japanese Government, with the 

' rhid.. Dec. 1, 1958, p. 853. 

Department of State Bulletin 

Asia Kyokai [Society], provides training facilities 
and teachers in Japan. 

This is a down-to-earth arrangement for effec- 
tive technical training on which the ICA has spent 
over a million dollars. I need hardly add that it 
is also a program that promotes international 
understanding in the most practical way pos- 
sible — by bringing Asian people together in Japan 
in activities of inmiediate and mutual interest. 

Last year, in Jmie, negotiations were concluded 
for another kind of joint imdertaking between 
Japan and the United States in Asian economic 
development. This was the project for develop- 
ment of the iron ore deposits in Orissa Province 
in India.^ 

These iron ore deposits are located more than 
400 miles inland in an area where harbor and rail- 
road facilities have not been fully developed. 
Japan's iron and steel industiy was greatly inter- 
ested in being able to obtain high-quality ore from 
India, whereas India was equally interested in an 
export market in Japan. Furthennore the harbor 
and railroad improvements needed for handling 
the iron ore would have the additional advantage 
to India of opening up and bringing modem com- 
munications to a large and potentially productive 
area. The total cost of the necessary improve- 
ments and of opening the iron mines, however, 
was more than Japan and India could manage. 

The solution was a three-way investment plan. 
Japan will advance a loan of $8 million for rail- 
way and mining equipment for the Orissa project. 
This will benefit Japan's industries and also help 
to provide the source of the needed iron ore. The 
United States will provide $20 irdllion for addi- 
tional imported equipment and materials, and the 
Government of India will shoulder the local con- 
struction costs, which it is estimated will be equal 
to about $39 million. Once the project has been 
completed, Japan will import about 2 million tons 
of high-grade Orissa iron ore each year. The rail- 
way carrying the ore will also can-y local farm 
products to Indian markets. The improved har- 
bor will make possible an increase in trade 

I think the Orissa project is an excellent proto- 
type for cooperation in Asian economic develop- 
ment. There must be many possibilities for 
similar joint aiTangements. They need not 
necessarily be on the scale of the Orissa project. 

nor need they be based only on the development 
of raw materials. What is required, as I see it, is 
a flexible pattern under which we can bring to- 
gether free Asian and Japanese capital and man- 
agerial skills with loans from tlie United States 
and other free-world countries, so as to bring 
sound economic development projects into 

The Contribution of Private Enterprise 

We need to induce private businessmen, as well 
as governments, to find potential projects for 
financing. The task of Asian economic develop- 
ment is one of such magnitude that governmental 
financing alone will not be adequate. There is a 
great need to induce private capital and enterprise 
to make its contribution to economic development. 
However, up till now, capital has not been the only 
limitation on economic development in Asia. 
There has been a lack, overall, of soundly con- 
ceived projects for assistance. This is a lack that 
Japan's private businessmen can help to overcome 
by seeking out opportunities, with tlieir free Asian 
friends, for development investment in Asia on a 
mutually beneficial and satisfactory basis. 

U.S. Development Loan Fund 

You may ask whether the United States has the 
institutions to work within the flexible pattern 
that I mention. Yes, it has. The Development 
Loan Fund, which was set up in 1957, is designed 
to meet needs that our other assistance and lending 
programs cannot meet. It can make loans repay- 
able in local currencies. It has the power to lend 
at preferential interest rates to projects such as 
roads and harbors that are not directly self-liqui- 
dating. It can associate itself with other investors, 
including private investors, in joint financing of 
development projects. It is authorized to finance 
loans, credits, guarantees, or other kinds of trans- 
actions. The keynote of the Fund is flexibility of 

President Eisenhower in his budget message^ 
has asked the Congi-ess to bring the appropriation 
for the Development Loan Fund for the current 
fiscal year up to $625 million. He also asked for 
new lending authority of an additional $700 mil- 
lion for the coming U.S. fiscal year begimiing on 

• Ihh!., July 28, 1958, p. 156. 
April 20, 7959 

'^ For excerpts from the President's budget message, see 
ibid., Feb. 9, 1959, p. 198. 


July 1.® The President has emphasized that the 
Fund is to continue to have a key role in our 
economic development assistance program. 

Other U.S. Economic Development Assistance 

In addition to the foregoing activities in 
which Japan and the United States work together, 
the United States is also making substantial ad- 
ditional contributions to Asian economic develop- 

We make these additional contributions through 
such institutions and programs as the United 
States Export-Import Bank, our agricultural sur- 
plus sales, our point 4 technical assistance pro- 
gram, and the International Cooperation Admin- 
istration, with its network of field offices in Asia. 
In the years since the end of World War II the 
United States has given outright about $6.6 billion 
to the developing countries of free Asia tlirough 
these and similar programs. Another $645 mil- 
lion has been provided in the form of credits. 
This figure is net, that is, deducting loan repay- 
ments. During the past three United States fiscal 
years alone, our grant aid to free Asia has been 
$2.7 billion. 

Japan, of course, benefits substantially from 
United States economic activities in Asia through 
the International Cooperation Administration's 
offsliore procurement program. The ICA pur- 
chases a sizable part of its aid goods on a com- 
petitive bid basis, open to all suppliers. Japan's 
industries have been able to supply more than 
$450 million worth of commodities and equipment 
to ICA programs during the past 5 years. Tliis 
is a very important bit of export business for 
Japan. It is good business, also, for the United 
States and for the newly developing countries. It 
makes use of Japan's industrial resources, skills, 
and favorable location to hasten Asian economic 

The range and character of the activities I have 
outlined make it abundantly clear that our two 
countries have not only the common objective of 
furthering Asian economic development but that 
we are actually working together to achieve it. 
Although progress has been made, there is still 
a tremendous job remaining to be done. The task 
is of such magnitude that governmental programs 

alone will not be adequate to meet the challenge. 
We must find additional ways of enlisting private 
enterprise, capital, and know-how in this great 

We need now to have all free peoples under- 
stand clearly how urgent and how overriding is 
the problem of Asian economic development. And 
we need groups such as your institute to keep in- 
terest and awareness alive and also to encourage 
more active support by both government and pri- 
vate entei-jjrise. I wish you great success in your 
dedicated effort. 

Report Urges Intensified Promotion 
of Private Investment Abroad 

Press release 236 dated March 31 

Intensified Government efforts to stimulate the 
flow of private U.S. investment abroad to form 
effective working partnerships with local capital 
for the economic growth of newly developing 
countries were recommended in a report, Expand- 
ing Private Investment for Free World Economic 
Growth, released on April 1 by the Department of 

The report was prepared for the Department 
under the direction of Ralph I. Straus, acting as 
special consultant to the Under Secretary for 
Economic Affairs, in response to section 413(c) of 
the Mutual Security Act. The report will be 
given careful study in the Department and other 
agencies to determine possible action based on its 

In submitting his report Mr. Straus made it 
clear that "the representatives of the Government 
agencies and the private individuals who assisted 
me in the preparation of this Report may not 
necessarily agree with all of its conclusions and 
recommendations. The responsibility for the 
final docmnent is mine alone." 

The report states that it is in "our national 
economic, political, and humanitarian interests" 
to help the less developed countries in their efforts 
to achieve economic development, to meet the po- 
litically motivated challenge of the Soviet eco- 
nomic offensive, and to achieve expansion in the 
world's economy generally by facilitating the 
international movement of capital and goods. 

Tor text of the President's message to the Congress 
on the mutual security program for fiscal year 1960, see 
ibid., Mar. 30, 1959, p. 427. 

' Copies of the report may be obtained upon request 
from the Department of State, Washington 25, D.C. 


Department of State Bulletin 

The report is based on the "conviction that, 
even in countries which have adopted a large 
measure of central economic direction, the en- 
couragement and release of private initiative will 
greatly accelerate the rate of growth." However, 
it cautions that its recommendations are not in- 
tended to replace the current Govenmient pro- 
grams for assisting the development effoi-ts of 
other countries. 

It urges a serious effort "by both government 
and business to use the tecliniques presently avail- 
able, and those which are recommended in this 
study, in imaginative ways to bring to bear on 
development problems private resources of cap- 
ital, skills, energy and initiative." 

The report emphasizes that "most of our gi-eat 
economic assets as a nation — capital, know-how, 
and resourcefulness — are in private hands" and 
states that "they have not been brought adequately 
to bear on the problems of the newly developing 

"It is crucial to generate the resourcefulness, 
organizational talent, and technical skill without 
which capital cannot acliieve economic expan- 
sion," it continues. "It is especially in these skills 
that the developmental potential of private enter- 
prise lies. Each business enterprise sets in motion 
a chain reaction of constructive economic activity 
and broadens the base of local technical compe- 
tence which will determine, in the end, the degree 
of success of any development program. 

"Private U.S. business abroad can have a dy- 
namic and beneficial effect on the economies of 
other countries which cannot be created by gov- 
emment-to-government activities alone." 

The report makes clear that its recommenda- 
tions reflect "a policy and administrative prefer- 
ence for those measures which will release and 
stimulate as much private activity as possible with 
a minimum of government interference in the free 
play of private decisions." 

The report sets forth at the outset that "the 
nature and rate of economic growth in the develop- 
ing countries, as well as the encouragement of 
private enterprise, depend primarily on the efforts 
and decisions of the leaders and citizens of those 
countries." In keeping with this, it recommends : 

. . . that projects designed to develop private enterprise 
in the participating countries be made an integral part of 
foreign assistance programs. This will require clear-cut 
policy decisions and the assignment of specific responsi- 

bilities to competent, specialized U.S. staff, both in Wash- 
ington and in the field, to secure as great an organized 
concentration upon the private sector as has heretofore 
been accorded to agriculture, health and public programs. 

. . . that the analysis upon which to base a program for 
stimulating private industry be carried out on a trial 
basis by means of specially qualified survey teams in a 
few selected countries that demonstrate interest in such 

. . . that the U.S. Government be prepared to extend 
support in the form of technical assistance to strengthen 
existing local institutions specifically designed to assist 
private enterprise and to create new institutions of this 
kind where deemed desirable. 

The report then turns to measures to encourage 
American investment abroad. In the tax field, 
the report attempts to "choose tax mcentives that 
do not threaten to create windfalls, special priv- 
ileges, or revenue losses without corresponding 
advantages that further the foreign policy ob- 
jectives of the United States." 

A principal tax recommendation applicable to 
foreign investment, and similar to legislation in- 
troduced by Representative Hale Boggs,^ is: 

. . . that the Internal Revenue Code be amended to 
give special tax treatment to domestic corporations known 
as Foreign Business Corporations (PBC's), such special 
treatment to have the effect of deferring payment of 
U.S. income taxes on the profits of an FBC arising 
from foreign investments and ojwrations until those 
profits are actually distributed to U.S. stockholders or 
otherwise diverted from foreign uses. 

The report also makes tax proposals which, are 
applicable only to investment in less developed 
nations, including a recommendation that "a de- 
duction against ordinary income be allowed for 
capital losses sustained by individual investors 
and corporations (including Foreign Business 
Corporations) on their new investments in the 
less developed areas." 

The report then takes up specific recommenda- 
tions for Government financing, ranging from var- 
ious forms of U.S. Government financial partici- 
pation with private enterprise to outright 
Government contracting for private services. It 
stresses greater use of intermediate financial insti- 
tutions and Government guarantees as a means 
of adding the judgment as well as the resources 
of private financial institutions to those of the 
Government in foreign development projects. 
The major recommendations of the report in this 
field are : 

. . . that the U.S. Government give further encourage- 

' H.R. 5, 86th Cong., 1st sess. 

April 20, 1959 


ment, by means of financial support, to soundly organized 
foreign development banks. In addition, . . . that the 
government undertake to supplement the resources of 
American financial institutions prepared to invest in pri- 
vate enterprises contributing to economic development in 
the less developed countries. 

. . . that appropriate legislative and administrative ac- 
tion be taken on the basis set forth in this report to 
provide governmental financial, tax, and legal support for 
the formation of International Development Investment 
Companies to invest in new or expanded private enter- 
prises in the less developed countries. 

. . . that government guaranties of the repayment of 
loans made by private lenders for enterprises in the de- 
veloping countries be used more extensively in lieu of 
direct loans ; that an expanded program be undertaken 
to test the effectiveness and feasibility of such guaran- 
ties ; and that the reserve against such guaranties be 
based on a conservative estimate to cover amply the max- 
imum foreseeable net cost to the government, rather than 
100 percent of the amount of guaranties issued. 

. . . that the investment guaranty provision of the 
Mutual Security Act be amended to include coverage of 
losses arising from revolution, insurrection, or civil strife 
associated with war, revolution, or insurrection. 

The report also contains recommendations for 
gi'eater utilization of local currency funds for 
private enterprise development. 

Noting that "there appears to he an even 
greater shortage of specific, -well-planned indus- 
trial projects seeking to attract capital," it recom- 
mends : 

. . . that survey contracts and exploration financing 
be employed under the Mutual Security Program for 
encouraging new ventures which contribute to economic 
development in less developed countries and that special 
funds be reserved for these techniques from appropriated 

In the contracting field the report recommends : 

. . . that, where necessary to accomplish high priority 
projects, greater use be made of management contracts 
which centralize managerial responsibility for an entire 
project, including Its operation for an initial period, in 
a single operating company ; and that these contracts 
be developed in close cooperation with the foreign govern- 


. . . that procedures be established to assure considera- 
tion and exploration with foreign governments of possi- 
ble arrangements for later private financial participation 
prior to extending financial a.KSistance for foreign govern- 
ment owned and operated projects. 

The report finds that changes in the antitrust 
legislation are not needed for stimulating Ameri- 

can private investment in the less developed areas 
and that the principal problems in that field can 
be dealt with by administrative action. 

The report makes certain recommendations for 
staffing official missions abroad, for added em- 
phasis upon commercial treaty negotiations, and 
for a compreliensive review by the Departments 
of State and Commerce of their services to 

In connection with the Straus study, the De- 
partment of Commerce prepared and sent to 955 
domestic companies, firms, organizations, and 
their executives, a letter and questionnaire re- 
questing opinions and recommendations on ex- 
i:)anding private enterprise abroad. A summary 
and analysis of answers and recommendations 
prepared by the Department of Commerce will 
shortly be published separately as an annex to the 
Straus report. 

Denmark Moves To Relax Controls 
Against Dollar imports 

Press release 227 dated March 27, for release March 29 

Following is a joint statement hy the Depart- 
ments of Commerce and State regarding impend- 
ing relaxation hy Denmark of its controls against 
dollar imports. 

The United States welcomes an announcement 
by the Government of Denmark that it is remov- 
ing licensing controls, effective April 1, 1959, on a 
substantial number of dollar imports. This is 
the second move by the Danish Government dur- 
ing 1959 to relax dollar controls and eliminates all 
discrimination against dollar goods in the liberal- 
ized sector of Danish trade. Beginning April 1, 
therefore, all products which can be imported 
without license requirements from Western Euro- 
pean countries may also be freely imported from 
the United States. 

As a result of the two steps taken during 1959, 
Danish liberalization of private dollar imports 
has increased from 66 to 88 percent (on the basis 
of 1963 import pattei-ns). The first step, effective 
January 1, raised the percentage to 70. Among 
the principal commodities which have been lib- 
eralized by this latest action are : petroleum prod- 


Department of State Bulletin 

nets; clnthinfr and textiles; cordafje of long- 
fibered silk and rayon; asbestos piece goods; 
citrus fruits; cheese; casein; check protectors; 
hearing aids; passenger automobiles (both com- 
plete and in parts for assembly) ; certain automo- 
bile components, including motors, tires, and 
tubes; motorcycles and certain motorcycle com- 
ponents, including motors; and trucks and vans 
weighing under 3,000 kilograms. 

This constructive action by the Danish Gov- 
ernment represents another significant step in the 
move toward a more multilateral system of world 
trade and payments. Earlier, Denmark along 
with most other West European coimtries had an- 
nounced nonresident convertibility of its currency. 
This financial measure facilitated the current re- 
laxation in the field of trade controls. 

Several other countries, including Norway and 
the Netherlands, have recently relaxed controls 
over imports from the dollar area. 

U.S. Surplus Foods Being Used 
To IVIeet Urgent Needs in Haiti 

Press release 229 dated March 27 

The Department of State announced on March 
27 that surplus stocks of U.S. foods are being 
utilized to meet recently reported urgent require- 
ments in Haiti. 

During the fiscal years 1954 tlrrough 1958 more 
than 10 million pounds of dried milk, wheat flour, 
cornmeal, and rice were authorized for free> dis- 
tribution through U.S. voluntaiy agencies to 
people in need in that country. Furthermore, 
during the present fiscal year (1959) nearly 7 mil- 
lion pounds were made available to the voluntaiy 
agencies for shipment. During the 3-month pe- 
riod, January through March 1959, more than 2.6 
million poimds were shipped, and neai'ly 2 million 
pounds are scheduled for shipment in April. 

These programs are conducted through the co- 
operation of two U.S. volmitary agencies. Cath- 
olic Relief Sei"vices and Church World Service 
(Protestant). Due to these currently operating 
progi-ams the voluntary agencies have substantial 
supplies of U.S. surplus commodities in Haiti 
fi'om which to continue distribution. To assure 
increased aid due to the drought, both agencies 

have been advised that their shipping programs 
against fiscal year 1960 requirements may proceed 
immediately in increasing amounts, and U.S. 
Government allocations of food will be increased 
to cover such shipments as conditions waiTant. 

A third agency, CARE, has recently surveyed 
the drought area and expects promptly to under- 
take an additional program utilizing U.S. food 

Attention is being given to meeting promptly 
any additional requirements for food including, 
if necessary, utilization of U.S. Department of 
Defense facilities to speed delivery to the affected 

Officials of the International Cooperation Ad- 
ministration, working in conjunction with Hai- 
tian officials, have recently made personal inspec- 
tion tours of the drought area in northwest Haiti 
by jeep, horseback, and on foot. They report 
severe local food shortages but so far no evidence 
of acute famine conditions or fatalities therefrom. 

Representatives of the two Governments have 
been consulting for some time in Washington 
and Port-au-Prince on measures to alleviate the 
situation. The latest such consultation took place 
on March 27 between Ambassador Ernest Bon- 
homme and State Department officials. 

Development Loans 


The United States amiounced on April 2 
authorization by the Development Loan Fund of 
a loan of $4.3 million to the Government of Haiti 
to complete an 80,000-acre irrigation project in 
the Artibonite Valley in Haiti. For details, see 
Department of State press release 241 dated April 


The Development Loan Fund and represent- 
atives of the Government of Somalia signed at 
Washington, D.C., on INIarch 31 an agreement 
whereby the DLF will lend $2 million to the 
Credito Somalo, a Government-owned Somalian 
bank, to enable the bank to extend medium- and 
long-term credit for agricultural and industrial 
development. For details, see Department of 
State press release 234 dated March 31. 

AprW 20, 1959 



Convention With Cuba for Conservation of Siirimp ' 


The White House, March 5, 1959. 

To the Senate of the United States : 

With a view to receiving the advice and con- 
sent of the Senate to ratification, I transmit here- 
with a convention between tlie United States of 
America and Cuba for the conservation of shrimp, 
signed at Havana on August 15, 1958. 

I transmit also, for the information of the Sen- 
ate, the report by the Acting Secretary of State 
■with respect to the convention. 

DwiGHT D. Eisenhower. 

(Enclosures: (1) Report of the Acting Secretary of State: 
(2) convention for the conservation of shrimp, signed at Havana 
on August 15, 1958.) 


Department of State, 
Washington, February 26, 1959. 

The President, 
The White House: 

The undersigned, the Acting 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, a convention be- 
tween the United States of America and Cuba 
for the conservation of shrimp, signed at Havana 
on August 15, 1958. 

The present convention is designed to provide 
the means for joint and coordinated action by the 
United States and Cuba to develop and maintain 
the maximum sustainable productivity of shrimp 
resources of common concern in the waters of the 
Gulf of Mexico off the coast of Cuba and the 
Florida coast of the United States. The action 

' S. Exec. B, 86th Cong., 1st sess. 

contemplated will lie in (1) promoting and co- 
ordinating research with respect to the fishery, 
and (2) devising and placing into effect such con- 
servation measures as may be found necessary to 
achieve the objectives of the convention. 

The principal shrimp fishery involved, em- 
bracing shrimp grounds lying north of a line 
drawn from Key West to Loggerliead in the 
Tortugas insular gi"Oup and covering an area 
about 70 miles long and 20 to 25 miles wide, has 
for some half-dozen years been one of the im- 
portant shrimp producing fisheries in the Gulf of 
Mexico. The stock or stocks of shrimp in the 
area are fished by U.S. fishermen and, to a lesser 
extent, by Cuban fishermen. During the years 
1950 through 1956 American shrimp boats took 
approximately 118 million pounds of heads-on 
shrimp from this fishery, valued at $38 million. 

In 1955 the landings of shrimp taken in this 
area began to show an increasingly high per- 
centage of small shrimp (50 count and above, 
heads-off), suggesting the possibility that a sub- 
stantial part of the yield from the resource was 
being caught before it had time to reach the more 
commercially desirable sizes. As a result of this 
trend, experimental research work was begun 
with respect to this fishery by the University of 
Miami Marine Laboratory in October of 1955 
with emphasis on net selectivity. This work was 
aimed at providing interim conservation measures 
until further and more comprehensive scientific re- 
search could be done on the basic aspects of the 
biology of the shrimp, particulary gi-owth and 
mortality rates. This preliminary experimental 
work, while yet inconclusive, does nevertheless 
point to mesh-size regulation as a possible prac- 
tical means of controlling the size of shrimp 
landed by permitting the desired escapement of 
undersized shrimp during the trawling operation. 
It should, however, also take into account other 

Department of State Bulletin 

factors, such as shrimp-size variation by depth 
and season and the ratio of sexes in the catch 
deriving from a given mesh size. 

Since tlie Tortugas slirimp fishery is a joint 
fishery of the United States and Cuba, it follows 
that any conservation program of research and 
regulation can most effectively be carried out by 
some suitable agreement between the two coun- 
tries. The participation of Cuban fishermen in 
this fishery is relatively small at present, owing in 
large part to the condition of the fishery. As the 
productivity of the fishery is increased, however, 
it will no doubt attract increasing Cuban partici- 
pation. It is essential, therefore, that the re- 
search work indicated and any resulting conser- 
vation regulations be effectuated with the coopera- 
tion of the two countries. 

The convention provides for the establishment 
of the Commission for the Conservation of 
Shrimp in the Eastern Gulf of Mexico as the 
mechanism for carrying out the objectives of the 
convention. The Commission will be composed 
of two national sections, each consisting of three 
members appointed by the respective Govern- 
ments. Each section has one vote in the delibera- 
tions of the Commission. Decisions of the Com- 
mission require the approval of both sections. 

The Commission is charged with two principal 
duties : obtaining scientific information pertaining 
to the stocks of shrimp of common concern in the 
convention area in order to determine the meas- 
ures necessary for their conservation ; and, on the 
basis of this information, adopting appropriate 
regulations, which will enter into force, in the 
absence of objection by either party, sixty days 
after notification of the regulations to the parties. 

The convention provides that each Government 
may establish an advisory committee for its na- 
tional section. 

Joint expenses of the Commission are to be paid 
by contributions made by the United States and 
Cuba. The budget of joint expenses and the 
share of each Government is to be determined by 
the Commission and submitted to the Govern- 
ments for approval. The share of each country 
in the joint expenses is to be related to the propor- 
tion of the total catch from the shrimp stocks of 
common concern in the convention area taken by 
vessels which belong to that country. 

It is estimated that joint costs arising from the 
convention will amount to not more than $200,000 

annually, of which the preponderant share will 
fall to the United States owing to the relatively 
small Cuban participation at the present time in 
the shrimp stocks covered by the convention. It 
is expected that in due course Cuba's participa- 
tion in these stocks will increase, and its share 
of the joint expenses become correspondingly 
larger. With regard to the cost factor, it will be 
noted that the Commission is authorized to estab- 
lish working relations with any international, 
public or private institution or organization or 
any individual. This authorization will enable 
the Commission to avail itself of the research fa- 
cilities of existing organizations if doing so 
proves practicable. 

Prior to negotiations with Cuba, the Depart- 
ment of State and the Department of the Interior 
undertook lengthy discussions with the concerned 
groups in the gulf area, including State officials. 
The convention represents principles on which 
wide agreement was reached. 

The convention will enter into force on the date 
of exchange of instruments of ratification. It 
will continue in force for 10 years and thei'eaf ter 
imtil terminated by either party on 1 year's no- 
tice. The convention requires the two Govern- 
ments to review in the sixth year the effectiveness 
of the convention. 

At an early date the Congress will be requested 
to consider implementing legislation necessary for 
the United States to apply the provisions of the 

Respectfully submitted. 

Christian A. Hertee, 

Acting Secretary of State. 

(Enclosure : Convention for the conservation of shrimp, signed 
at Havana, August 15, 1958.) 


Convention Between the United States of America and 
Cuba for the Conservation of Shrimp 

The Government of the United States of America and 
the Government of Cuba, considering their common in- 
terest in maintaining the maximum sustainable pro- 
ductivity of stocks of shrimp of common concern in 
waters of the Gulf of Mexico off the coast of Cuba and 
the Florida coast of the United States, and in promot- 
ing the scientific studies necessary to ascertain the con- 
servation measures required for this purpose, and desir- 
ing to establish procedures for coordinating such studies 
and for placing in effect such conservation measures as 
may be necessary, agree as follows : 

April 20, 1959 



The area to which this Convention applies, hereinafter 
referred to as "the Convention area", shall be the waters 
of the Gulf of Mexico off the coast of Cuba and the 
Florida coast of the United States, including territorial 
waters, in which are found stocks of shrimp of common 


1. The Contracting Parties agree to establish and op- 
erate a commission, to be linown as the Commission for 
the Conservation of Shrimp in the Eastern Gulf of Mex- 
ico, hereinafter referred to as "the Commission", which 
shall carry out the objectives of this Convention. The 
Commission shall be composed of two national sections, 
a United States section consisting of three members ap- 
pointed by the Government of the United States, and a 
Cuban section consisting of three members appointed 
by the Government of Cuba. 

2. Each national section shall have one vote. Decisions 
of the Commission shall be made only by approval of both 

3. The Commission may decide upon and amend, as oc- 
casion may require, rules for the conduct of its meetings 
and for the performance of its functions and duties. 

4. The Commission shall meet at least once each year 
and at such other times as may be agreed by both na- 
tional sections. The date and place of the first meeting 
shall be determined by agreement between the 

5. The Commission .shall decide on the most convenient 
place for the establishment of its headquarters. 

6. At its first meeting the Commission shall select a 
chairman from the members of one national section 
and a vice chairman from the members of the other 
national section. The chairman and vice chairman shall 
hold office for a period of two years. In each succeeding 
term, the ofiice of chairman and vice chairman shall alter- 
nate between the respective national sections. 

7. Each section of the Commission may appoint its 
own advisers who shall be invited by the Commission to 
attend all nonexecutive sessions of the Commission. 

8. Each section of the Commission may hold public 
hearings within the territory of its own country. 

9. The official languages of the Commission shall be 
English and Spanish, and members of the Commission 
may use either language during meetings. The minutes, 
official documents and publications of the Commission 
shall be in both languages, Init official correspondence 
of the Commission may be written in either language. 

10. The expenses incurred by each national section 
shall be borne by its Government. The share of each 
country in the joint expenses incurred by the Commission 
shall be related to the proportion of the total catch from 
the shrimp stcKks of commcm concern in the Convention 
area taken by vessels which belong to that country. 

11. The budget of joint expenses and the share of each 
Government shall be determined by the Commission and 
submitted to the Governments for approval. 

12. The Commission shall authorize the disbursement 
of funds for the joint expenses of the Commission and 

may employ necessary i)ersonnel for the performance of 
its functions and duties. 

13. The Commission shall designate a technically com- 
petent Director who shall serve at the pleasure of the 
Commission. Subject to such rules and procedures as 
may be determined by the Commission, the Director shall 
have full power and authority over the staff of the Com- 


1. The Commission shall have responsibility for : 

(a) Obtaining scientific information regarding the 
abundance, life history, and ecology of stocks of 
shrimp of common concern in the Convention area 
in order to determine the measures necessary for 
their conservation. 

(b) Publishing or otherwise disseminating reports 
relative to the results of its findings and such other 
scientific reports and statistical data as fall within 
the scope of this Convention. 

(c) Adopting, with respect to the Convention 
area, such regulations, based on scientific findings, 
as are necessary to achieve the objectives of this 

2. Each of the regulations adopted pursuant to para- 
graph 1(c) above shall become effective with respect to 
the Contracting Parties sixty days following notification 
of the regulation by the Commission to each of the Con- 
tracting Parties, except that either of the Contracting 
Parties may prevent entry into force of a regulation by 
lodging objection thereto with the Commission before the 
ex])iration of such sixty-day period. 

3. The Commission shall notify the other Contracting 
Party immediately upon receipt of objection to a 

4. In discharging its responsibilities the Commis.sion 
may establish working relations with any international, 
public or private institution or organization or any 

5. The Commission shall submit annually to the re- 
spective Parties a report on its work, together with any 
recommendations, and shall also inform them, whenever 
it is deemed advisable, on any matter relating to the 
objectives of this Convention. 


The Contracting Parties agree to keep as far as prac- 
ticable all records requested by the Commission and to 
furnish conii)ilations of such records and other informa- 
tion upon request of the Commission. No Contracting 
Party shall be required heremuler to provide the records 
of individual operations. 


The Contracting Parties agree to cooperate with each 
other in taking appropriate and effective action to enforce 
any regulations which enter into force pursuaut to Article 
III of this Convention. Accordingly, the Contracting 
Parties agree as follows : 

1. Any national or vessel of a Contracting Party which 
engages in operations on the high seas in violation of 


Department of State Bulletin 

regulations which enter into force pursuant to Article III 
of this Convention may be seized by duly authorized offi- 
cers of the other Contracting Party and detained by the 
officers making such seizure and delivered as soon as 
practicable to an authorized official of the country to 
which such person or vessel belongs, at the nearest point 
to the place of seizure or elsewhere as may be agreed 

2. The authorities of the country to which such person 
or vessel belongs alone shall have jurisdiction to conduct 
prosecutions for violation of the regulations which enter 
into force pursuant to Article III of this Convention and 
to impose penalties for such violation, and the witnesses 
and proof necessary for such prosecutions, so far as any 
witnesses or proofs are under the control of the seizing 
Country, shall be furnished with all reasonable prompti- 
tude to the authorities having jurisdiction to conduct the 

3. Each contracting party shall be responsible for the 
proper observance of this Convention and of any regula- 
tions adopted under the provisions thereof in the portions 
of its waters covered thereby. 


The Contracting Parties agree to meet, during the sixth 
year of the operation of this Convention, to review the 
effectiveness of the provisions of this Convention and, if 
desirable, to consider means by which they may more 
effectively be carried out. 


Nothing in this Convention shall be construed as pre- 
venting either of the Contracting Parties or in the case 
of the United States, any of the States, from making or 
enforcing laws or regulations which in the absence of this 
Convention would be valid relative to any fisheries of 
the Convention area so far as such laws or regulations 
do not preclude the discharge of the Commission's 


1. This Convention shall be ratified and the instru- 
ments of ratification exchanged at Habana as soon as 

2. This Convention shall enter into force on the date 
of exchange of instruments of ratification and shall re- 
main in force for a period of ten years and thereafter 
until one year from the date on which either Contracting 
Party shall have given written notice to the other of 
its desire to terminate the Convention. 

In witness whereof the respeetive Plenipotentiaries 
have signed the present Convention. 

Done in duplicate, in the English and Spanish lan- 
guages, each of which shall be of equal authenticity, at 
Habana this 15th day of August, 1958. 

For the Government of the United States of America : 
Earl E. T. Smith 

For the Government of the Republic of Cuba : 


Congressional Documents 
Relating to Foreign Policy 

86th Congress, 1st Session 

Estate Tax Deduction for Charitable Transfers Subjected 
to Foreign Death Taxes. Report to accompany H.R. 
137. H. Rept. 82. February 20, 1959. 7 pp. 

Authorizing the Extension of Loans of Naval Vessels to 
the Governments of Italy, Turkey, and the Republic 
of China. Report to accompany H. R. 3360. March 2, 
1959. 9 pp. 

Favoring Meeting of the North Atlantic Treaty Parlia- 
mentary Conference for 1959 in Washington, D.C. Re- 
port to accompany H. Con. Res. 34. H. Rept. 94. 
March 3, 1959. 2 pp. 

Authorizing an Appropriation for Pan American Games 
To Be Held in Chicago, 111. Report to accompany H.R. 
2575. H. Rept. 95. March 3, 1959. 2 pp. 

Certain Members of the Armed Forces of the LTnited 
States, or Their Survivors, Who Were Captured and 
Held as Prisoners of War in the Korean Hostilities. 
Report to accompany H.R. 4121. H. Rept. 141. March 

4, 1959. 5 pp. 

Immigration and Naturalization. Report of the Commit- 
tee on the Judiciary, U.S. Senate, made by its Subcom- 
mittee on Immigration and Naturalization pursuant to 

5. Res. 235 as extended, 85th Congress, 2d session. S. 
Rept. 78. March 5, 1959. 8 pp. 

Authorizing Free Communication Services to Official Par- 
ticipants in the Ninth Plenary Assembly of the Inter- 
national Radio Conisultative Committee. Report to ac- 
company S.J. Res. 47. S. Rept. 81. March 5, 1959. 
4 pp. 

Committee on Un-American Activities: Annual Report 
for the Year 1958. H. Rept. 187. March 9, 1959. 
104 pp. 

Requiring a Study To Be Conducted of the Effect of In- 
creasing the Diversion of Water From Lake Michigan 
Into the Illinois Waterway for Navigation, and for 
Other Purposes. Report together with minority, sup- 
plemental, and separate views to accompany H.R. 1. 
H. Rept. 191. March 9, 1959. 25 pp. 

Patents, Trademarks, and Copyrights. Report of the 
Committee on the Judiciary, U.S. Senate, made by its 
Subcommittee on Patents, Trademarks, and Copyrights 
puri5uant to S. Res. 230, 8.5th Congress, 2d ses.sion, as 
extended. S. Rept. 97. March 9, 1959. 28 pp. 

1959 Joint Economic Report. Report of the Joint Eco- 
nomic Committee, Congress of the United States, on the 
January 1959 Economic Report of the President with 
minority and other views and the economic outlook for 
1959 prepared bv the committee staff. S. Rept. 98. 
March 9, 19.59. 76 pp. 

Proposed Supplemental Appropriation To Pay Certain 
Claims and Judgments Against the United States. 
Communication from the President of the United States 
transmitting a proposed supplemental appropriation to 
pay claims for damages, audited claims, and judgments 
rendered against the United States, as provided by 
various laws, in the amount of ,f2.570,198, together ^ith 
such amounts as may be necessary to pay indefinite 
interest and costs and to cover increases in rates of 
exchange as ma.v be necessary to pay claims in foreign 
currency. H. Doc. 95. March 11, 1959. 35 pp. 

Authorizing Service by Canadian Vessels for Certain 
Alaska Ports. Report to accompany S. 175. S. Rept. 
99. March 11, 1959. 6 pp. 

Final Report of the Special Committee on Space and As- 
tronautics of the United States Senate Pursuant to S. 
Res. 2.56 of the 85th Congress. S. Rept. 100. March 
11, 1959. 76 pp. 

April 20, 7959 



ITU International Radio Committee 
Convenes at Los Angeles 

FoUoioing is the text of an address hy W. T. M. 
Beale, Deputy Assistant /Secretary for Economic 
Affairs, iefore the opening session of the ninth 
Plenary Assemhly of the International Radio Con- 
sultative Committee {CCIR [Comite consultatif 
international des radio com,munications^) at Los 
Angeles, Calif., on April 2, together with Depart- 
ment announcements concerning the meeting. 


Press release 239 dated April 1 

It is an honor and a pleasure to welcome you on 
behalf of the Government of the United States. 

This countiy has been gi-eatly privileged, for it 
was at Wasliington that the International Eadio 
Consultative Committee was created in 1927 and it 
was at Atlantic City in 1947 that the radio con- 
ference adopted the principle of the engineered 
allocation of frequencies to communications serv- 
ices. Now the city of Los Angeles takes its place 
in a roster which contains many famous names. 
For we should not forget that this Committee 
traces its origin back to the founding in Paris, 94 
years ago, of the International Telegraph Union. 
When the first International Telegraph Conven- 
tion was signed on May 17, 1865, our Civil War 
had only just drawn to a close and our country 
had suffered the loss of the Great Emancipator, 
Abraham Lincoln. At that time this great State 
of California had belonged to the Union only 15 

Let me recall for a minute some of the high- 
lights in the historical background against which 
we are meeting today. Wlien the Paris convention 
was revised in 1868 in Vienna, Franz Josef the 
First was Emperor of Austria and King of Hun- 
gary. When it was again revised in Rome in 1872, 
Italy had been unified for only a year. And by 
1875, when the Union met in St. Petersburg, the 

Czar Alexander the Second had emancipated the 

A listing of these events serves to point up how 
relatively young the CCIE is and at the same time 
emphasizes the rapidity of developments during 
the lifetime of your organization. To many of 
us, for whom the memory of Lindbergh's historic 
flight is still vivid, the year 1927 is not ancient 
history. But I feel quite certain that, had the 
Confei'ence been held in Los Angeles in that year, 
I would not then have flown from Washington 
solely to welcome you, as I have done on this 

Anticipating Future Communications Requirements 

It is not my purpose, however, to dwell on past 
history and the progress already made by your 
organization, especially that made since the end 
of World War II. You can take pride indeed in 
your past accomplishments. And I am certain 
that you welcome the challenging tasks you will 
imdertake in the years immediately ahead. Today 
you are studying the requirements for communi- 
cation service with outer space on an urgent basis. 
Only a few yeare ago the need for such studies 
seemed indefinitely far in the future. But, as 
you have recognized, the requirements for this 
new service are a very real, practical, current 
problem for wliich the Radio Administrative Con- 
ference at Geneva will have to consider frequency 
allocation needs. I am confident this Committee 
will make a solid contribution to the understand- 
ing and resolution of these problems. It is also 
important for the future that you have under 
active consideration the problems of still another 
new service — stereophonic broadcasting — through 
which new dimension and depth will be given to 
the transmission of sound. 

It is a tribute to the farsightedness of the origi- 
nators of the CCIR, and must be a source of grati- 
fication to all of you, that the many technical 
problems brought about by the expansion of the 
art of radio into the broad field of electronics 
development could be met and solved through the 


Department of State Bulletin 

years on an international basis with such success. 
If questions concerning newly developing serv- 
ices and teclmiques have not become major inter- 
national telecommunications problems, it is 
because the CCIE has anticipated them and rec- 
ommended procedures for their resolution at an 
early stage. 

The attributes of the CCIE have been many. 
It has anticipated future communication require- 
ments and recognized the importance of flexibility 
for research and development in new areas of 
commiuiication. It has never waited for prob- 
lems to become acute. Particularly in the period 
since 1947, when, as I have remarked, the change 
in approach to the allocation of frequencies for 
radio commmiication service was made, the CCIR 
has put into early study a great many teclinical 

You are all familiar with most of these prob- 
lems, but I would still like to recall some of them, 
such as those of the propagation characteristics of 
various frequencies, and the operational charac- 
teristics and teclmiques for particular services to 
provide for maximum efficiency and capacity for 
each sei-vice. Tliis had the long-range view not 
only of providing for future expansion of com- 
munication service but also of providing for con- 
servation of the frequency spectrum. 

Tlie CCIR has emphasized the need for future 
standardization for international communication 
service to the widest extent possible. It has also 
called for the development of more efficient trans- 
mitters, receivers, and complete communications 
systems and for accuracy in monitoring and in 
standardizing frequency signals. 

It is important to remember, however, that the 
results of which you are proud could only have 
been achieved by adherence to the main objectives 
of the International Telecommunication Union. 
Let me recall to your minds that these objectives 
are : first, to maintain and extend international co- 
operation for the improvement and rational use 
of telecommunications; second, to promote the de- 
velopment of technical facilities and their most 
efficient operations; and lastly, to harmonize the 
actions of nations in the attaumient of these com- 
mon ends. 

I would emphasize the words "international co- 
operation," "development of teclmical facilities," 
and "harmonize the actions of nations." To me 
they are worth emphasizing, first, because my 
Government recognizes the vital international 

importance of the work which is the particular 
responsibility of this Committee and, second, be- 
cause these are the objectives which my Govern- 
ment seeks to achieve through its foreign eco- 
nomic policy. 

We believe that these principles of international 
cooperation, teclmical assistance, and mutual aid 
should be applied not only in dealing with the 
problems of telecommunication but in carrying 
out the numerous other activities pursued under 
the aegis of the United Nations. That is why 
my Government attaches such great importance 
to other specialized agencies of the U.N., several 
of which work closely with the ITU, such as 
ICAO [International Civil Aviation Organiza- 
tion], UNESCO [United Nations Educational, 
Scientific and Cultural Organization] , and "VVIIO 
[World Meteorological Organization] . 

Responsibilities as Citizens 

Today we live in an era of interdependence. 
An event in one part of the world has repercus- 
sions in other parts, adverse or favorable. If you 
will forgive me for borrowing from your phrase- 
ology, there are times when the political and eco- 
nomic frequency bands seem overcrowded and 
one could wish that in those fields we might dupli- 
cate your success in agreeing on allocations. 

As communicators you have solved many tech- 
nical problems. I doubt not that you will re- 
solve many more. But you are also citizens in 
an interdependent world, and as such you bear 
additional responsibilities. In your expert ca- 
pacity you have contributed to the tremendous 
advance that has been made in our ability to com- 
municate with each other. In your other capacity 
you must share the deep concern of all men of 
good will that the ideas we communicate should 
promote the peace and well-being of all nations. 

In this audience today are representatives of 
54 comitries. I do not know how many of you 
are visiting this country for the first time. Many, 
I hope, we can count as old friends. During the 
weeks you will spend in this delightful city and 
State I hope you will come to know and under- 
stand us or learn to know us better, as the case may 
be. I recognize that, to you who commvmicate 
so freely, no parts of the world and no peoples are 
wholly unfamiliar. But I would hope that this 
conference would not only advance the art of 

April 20, 1959 


communication but assist the communication of 

Let me remind you tliat it is not only in the 
field of communications that the world has 
changed, and this country witli it. Few of those 
who attended the conference in Washington in 
1927 could have imagined that the Marshall plan 
would already be in operation when they met 
again in 1947. And today this counti-y can point 
to many developments in the field of foreign eco- 
nomic policy which you will want to take into 
account in arriving at yom* understanding of our 
coimtry. For, as I have suggested, we have 
sought to apply in this broad field the principles 
you have found so effective in your own special 
field of interest. 

In doing so my Government has associated it- 
self with others in multilat«i'al organizations for 
the expansion of international trade and the pro- 
motion of economic development. We take some 
considerable pride that our coimtry, in coopera- 
tion with many others, has brought about sub- 
stantial reductions in the trade banners which 
stifle the exchange of goods and services through- 
out the world. Through the International Mone- 
tary Fund we have helped to promote excliange 
stability and to alleviate balance-of-payments dif- 
ficulties. With other members of the World 
Bank we have been able to render development 
assistance through loans. We have collaborated 
with other international organizations, including 
many agencies of the U.N., in their efforts to im- 
prove economic conditions and raise living stand- 
ards throughout the world. Moreover, when 
needs have arisen which could not be met by 
other means, we have sought to supplement these 
international efforts from our own resources 
through institutions established for that purpose. 

In mentioning what we have done in recent 
years I do so not to solicit your praise. My sole 
purpose is that you may have a better understand- 
ing of the development of our national thinking. 
We would have you see behind the form to the 
substance, so that we may encourage that com- 
munication of ideas which your acliievements fa- 


The Department of State announced on March 
26 (press release 225) that the ninth Plenary 

Assembly of the International Radio Consulta- 
tive Committee (CCIR) of the International Tele- 
communication Union would convene at Los 
Angeles April 1, 1959, at the invitation of the city 
and the U.S. Goverimient. 

The CCIR was established in 1927 by the Inter- 
national Radio Conference at Washington and was 
reconstituted as a pennanent organ of the Inter- 
national Telecommunication Union in 19'47. 

The Plenary Assembly will provide an excellent 
forum for the exchange of information between 
American radio communications experts and their 
counterparts from all over the world. Partici- 
pants from other countries will also have the op- 
portunity to observe at firsthand recent Amei'ican 
advances in telecommxmications and electronics. 
An extensive program of extra-official activities 
lias been prepai'ed by Government and industry 
representatives, to permit the delegates to visit 
electronics and commimications instiallations in 
the area and to see America. 

Official delegations from some 60 countries as 
well as representatives from private operating 
agencies, international organizations, science, and 
industry are expected to attend the Assembly. 

The Assembly will consider the results of the 
work of the study groups since the last Assembly, 
which cover the entire field of research and opera- 
tional techniques in radioconnnunications and elec- 
tronics. The results will be reviewed and for- 
warded for consideration by the ITU Radio 
Conference (Geneva, August 1959) with recom- 
mendations to be included in the Radio Regula- 
tions. It will also formulate a program of study 
group activity for the 3-year period until the next 

The i^lenary sessions and the various study 
group meetings will continue through the month 
of April. 

The Department announced on March 28 ( press 
release 230) that W. T. M. Beale, Deputy Assist- 
ant Secretary for Economic Affairs, would wel- 
come the delegations to the opening session of the 
ninth Plenary Assembly. 
^ The Department announced on March 31 (press 
release 235) that Arthur L. Lebel, assistant chief 
of the Telecommunications Division of the De- 
partment of State, would serve as chiurman of the 
U.S. delegation to the ninth Plenary Assembly 
of the International Radio Consultative Commit- 


Departmenf of Sfate Bulletin 

tee of the International Telecommunication 
Union. He will also serve as chairman of the 

Mr. Dillon Leaves Washington 
for SEATO Meeting 

Douglas Dillon, Under Secretary for Economic 
A-ffairs, left Washington on April 3 to attend the 
fifth meeting of the Council of the Southeast Asia 
Treaty Organization at Wellington, New Zealand. 
Following is the text of his departure statement, 
together with an announcement of a change in 
the U.S. delegation. 

Mr. Dillon's Departure Statement 

Press release 245 dated April 3 

I am looking forward with great interest to 
the SEATO Council meeting in Wellington. 

SEATO's high purpose as a ban-ier against 
Communist aggression in all its forms in the treaty 
area has been fully justified by events. The free 
nations of the area have been able to pursue their 
chosen courses of national development without 
armed interference from the forces of communism. 

At the coming meeting we shall discuss ways 
to strengthen SEATO. It will also afford me a 
welcome opportunity to become better acquainted 
with the foreign ministers and other representa- 
tives of our SEATO allies. I shall be particu- 
larly happy to see again our host, Prime Minis- 
ter Nash of New Zealand. 

Following the SEATO Council meeting, I shall 
go to Baguio to attend the annual conference of 
our ambassadors in the Far East. En route to 
Baguio, I shall stop off in Canberra, Djakarta, 
and Manila for brief, informal talks. 

Announcement of Change in Delegation ' 

The Department of State announced on March 
31 (press release 237) that J. Graham Parsons, 
Deputy Assistant Secretary for Far Eastern Af- 
fairs, would accompany Under Secretary Dillon 
to the fifth annual meeting of the SEATO 
Council of Ministers in place of Assistant Sec- 

retaiy for Far Eastern Affaire Walter S. 


* For a list of the U.S. delegation, see Bulletin of 
Apr. 13, 1959. p. 536. 

Current Actions 


Automotive Traffic 

Convention on road traffic with annexes. Done at Ge- 
neva September 19, 1949. Entered into force March 26, 
1952. TIAS 2487. 

Accession deposited: Lacs, March 6, 1959. 
Notification by United Kingdom of application to {vnth 
reserjmtions and declarations) : Jamaica, St. Lucia, 
and Trinidad, March 5, 1959. 


Agreement on joint financing of certain air navigation 

service.s in Iceland. 
Agreement on joint financing of certain air navigation 

services in Greenland and the Faroe Islands. 

Done at Geneva September 25, 1956. Entered into force 
June 6, 1958. TIAS 4048 and 4049, respectively. 

Accessions deposited: Australia, March 5, 1959. 

Trade and Commerce 

Declaration extending stand.still provisions of article 

XVI : 4 of the General Agreement on Tariffs and Trade. 

Done at Geneva November 30, 1957.' 

Signatures: Greece, February 9, 1959; France, Febru- 
ary 10, 1959. 
Proc^s-verbal extending the validity of the declaration' 

extending the standstill provisions of article XVI : 4 of 

the General Agreement on Tariffs and Trade. Done at 

Geneva November 22, 1958." 

Signatures: Greece, February 9, 1959; France, Febru- 
ary 10, 19.59. 
Protocol relating to negotiations for the establishment 

of new schedule III — Brazil— to the General Agreement 

on Tariffs and Trade. Done at Geneva December 31, 


Signatures: Norway, February 5, 1959; France, Febru- 
ary 10, 1959; Sweden, February 16, 1959; Federation 
of Rhodesia and Nyasaland, February 20. 1059; 
Austria, February 27, 1959; Denmark, February 28, 
1959; Italy (subject to ratification), March 6, 1959. 


Agreement on North Atlantic ocean stations. Done at 
Paris February 25, 1954. Entered into forc-e February 
1, 1955. TIAS 3186. 
Accession deposited: Australia, March 5, 1959. 



Agreement relating to advance payment by Germany on 
its indebtedness to the United States for postwar eco- 
nomic assistance under the agreement of February 27, 
1953 (TIAS 2795). Effected by exchange of notes at 
Bonn March 20, 1959. Entered into force March 20, 

' Not in force. 

April 20, J 959 



Agreement amending the Air Force mission agreement 
signed at Washington January 4, 1949, as extended 
(TIAS 1863, 2807, and 3728). Effected by exchange of 
notes at Port-au-Prince February 20, 1959. Entered 
into force February 20, 1959. 



Walter S. Robertson as Assistant Secretary of State, 
effective July 1, 1959. (For an exchange of correspond- 
ence between President Elsenhower and Mr. Robertson, 
see White House press release dated April 1.) 


Clifford H. Willson as Commissioner of the Joint Com- 
mission on Rural Reconstruction, Taipei, effective March 
22. (For biographic details, see press release 233 dated 
March 30.) 

Saxton Bradford as Deputy for Operations to the Spe- 
cial Assistant to the Secretary for the Coordination of 
International Educational and Cultural Relations, effective 
June 1. (For biographic details, see press release 231 
dated March 30.) 

Check List of Department of State 

Press Releases: March 30-Aprii 5 

Press releases may be obtained from the News 

Division, Department of State, Washington 25, D.C. 


issued prior to Mai'ch 30 which appear 

in this issue of the Bulletin are Nos. 204 of March 

19, 211 and 212 of March 23, 225 of March 26, 227, 

228, and 229 of March 27, and 230 of March 28. 






Bradford appointment (biographic de- 



Educational exchange (Afghanistan). 



Willson designation (biographic de- 



DLF loan to Somalia (rewrite). 



Delegate to CCIR plenary assembly 



Straus report on private investment 



SEATO delegation (rewrite). 



Educational exchange (India). 



Beale : International Radio Consulta- 
tive Committee. 



Four-power communique. 



DLF loan to Haiti (rewrite). 



Herter : NATO 10th anniversary. 



Cultural exchange (Colombia). 



Parsons to be nominated Assistant 
Secretary (biographic details). 



Dillon : departure for SEATO meeting. 



Herter : College News Conference, 

*Not prin 


Departmenf of State Bulletin 


AprU 20, 1959 


e X 

Vol. XL, No. 1034 


Asian Economic Development (MacArtliiir) . . . 559 
Robertson resigns as Assistant Secretary of State . 574 

China. Willson designated Commissioner of tlie 
Joint Commission on Rural Reconstraetion, 
Taipei 574 

Congress, The 

Congressional Documents Relating to Foreign 

Policy 569 

Convention With Cuba for Conservation of Shrimp 

(Eisenhovrer, Herter) 566 

Cuba. Convention With Cuba for Conservation of 

Shrimp (Eisenhower, Herter) .566 

Denmark. Denmark Moves To Relax Controls 
Against Dollar Imports 564 

Department and Foreign Service 

Designations (Bradford, Willson) 574 

Resignations (Robertson) 574 

Economic Affairs 

Asian Economic Development (MacArthur) . . . 559 

Convention With Cuba for Conservation of Shrimp 

(Eisenhower, Herter) 566 

Denmark Moves To Relax Controls Against Dollar 

Imports 564 

ITU International Radio Committee Convenes at 

Los Angeles (Beale) 570 

Report Urges Intensified Promotion of Private In- 
vestment Abroad 562 

France. Western Foreign Ministers Meet To Dis- 
cuss German Problem (text of joint statement 
and 4-power communique) 554 

Germany. Western Foreign Ministers Meet To Dis- 
cuss German Problem (text of joint statement 
and 4-power communique) 554 


Development Loan 565 

U.S. Surplus Foods Being Used To Meet Urgent 

Needs in Haiti 565 

International Organizations and Conferences. 

ITU International Radio Committee Convenes 

at Los Angeles (Beale) 570 

Japan. Asian Economic Development (Mac- 
Arthur) 559 

Jordan. King Hussein I of Jordan Visits United 

States 558 

Mutual Security 

Asian Economic Development (MacArthur) . . . 559 

Development Loans (Haiti, Somalia) 565 

U.S. Surplus Foods Being Used To Meet Urgent 
Needs in Haiti 565 

North Atlantic Treaty Organization 

Salute to NATO (Herter) 545 

Tenth Anniversary of the North Atlantic Treaty 
Organization (Eisenhower, Herter, Luns, Spaak, 
text of communique, U.S. delegation) .... 543 
Pakistan. Letters of Credence (Ahmed) .... 554 
Presidential Documents 

Convention With Cuba for Conservation of Shrimp . 566 
Tenth Anniversary of the North Atlantic Treaty 
Organization 543 

Publications. Report Urges Intensified Promotion 

of Private Investment Abroad 562 

Somalia. Development Loan 565 

Southeast Asia Treaty Organization. Mr. Dillon 

Leaves Washington for SEATO Meeting . . . 573 

Treaty Information 

Convention With Cuba for Conservation of Shrimp 

(Eisenhower, Herter) 566 

Current Actions 573 


U.S. and U.S.S.R. Exchange Notes on Damage to 
Submarine Cables (texts of notes and U.S. aide 
memoire) 555 

Western Foreign Ministers Meet To Discuss German 
Problem (text of joint statement and 4-power 
communique) 554 

United Kingdom. Western Foreign Ministers Meet 
To Discuss German Problem ( text of joint state- 
ment and 4-power communique) 554 

Name Index 
Ahmed, Aziz 554 

Beale, W. T. M 570 

Bradford, Saxton 574 

Dillon, Douglas 573 

Eisenhower, President 543, 566 

Herter, Acting Secretary 545, 546, 566 

King Hussein I 558 

Luns, Joseph M. A. H 547 

MacArthur, Douglas, II 559 

McNaraara, Edward T 574 

Robertson, Walter S 574 

Spaak, Paul-Henri 550 

Willson, Clifford H 574 








Government Printing Office 


Washington 25, D.C. 


4gy <!a 






The Communist Economic Tiireat 




In May 1958 the Department of State issued a pamphlet en- 
titled "The Sino-Soviet Economic Offensive in the Less Developed 
Countries." The present publication, a condensation of that 
study, which was derived from a great many authoritative 
sources, includes the most recent data available regarding the 
Communist program of economic penetration. 

As was pointed out in the earlier study, this program represents 
an attempt by the Sino-Soviet bloc to employ its growing economic 
and industrial capacities as a means for bringing the newly 
developing free nations within the Communist orbit. The Sino- 
Soviet program is a massive attempt, having involved to date 
financial commitments by the bloc of nearly $2.5 billion. 

This document is a description of the scope and nature of tliis 
offensive and an analysis of its motives and objectives. 

Publication 6777 

15 cents 

Order Form 

Please send me copies of The Communist Economic Threat 

To: Supt. of Documents 
Govt. Printing Office 

Washington 25. D.C. 

Kfwlosed find: 


(cniih, check, or money 
order payable to 
Supt. of Docs.) 


Street Address: 

City, Zone, and State: 


Vol. XL, No. 1035 

April 27, 1959 


by President Eisenhower •..• 579 


hy Allen W. Dulles 583 


• by Assistant Secretary Wilcox 590 


Address by Under Secretary Dillon and Text of Final 
Communique 602 

REPORT ON SEATO, 1958-59 • by Pote Sarasin, 

Secretary General 605 


For index see inside back cover 


Vol. XL, No. 1035 • Pubucation 6810 
April 27, 1959 

For Bale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 25, D.C. 


(2 Issues, domestic $8.60, foreign $12.2S 

Single copy, 25 cents 

The printing of this publication has been 
approved by the Director of the Bureau of 
the Budget (January 20, 1958). 

Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
o» State Bulletin as the source will be 

The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, 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 
interruitional affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreements to 
which the United States is or may 
become a party and treaties of gen- 
eral international interest. 

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

The Importance of Understanding 

Address hy President Eisenhower ^ 

Now, like any other individual invited to speak 
on a subject of his own choosing before a collegi- 
ate group, I have been confronted with the need 
for making one or two decisions. One of these 
has been the selection of a subject that you here 
might consider to be both current and interest- 
ing. Another has been the length of the time I 
might need for its exposition. 

Napoleon, reflectmg upon the desirable quali- 
ties of a political constitution, once remarked that 
such a document should preferably be short and 
always vague in meaning. Unfortmiately he did 
not comment upon the appropriate length and 
character of a talk connnemorating Founders 
Day at a liberal arts college. But if I do not wan- 
der too far from my text, I can, at least, attain 
reasonable brevity — and I do assure you that there 
will be notliing vague about the convictions I 

I shall not attempt to talk to you about educa- 
tion, but I shall speak of one vital purpose of 
education — the development of underetanding — 
understanding, so that we may use vnt\v some 
measure of wisdom the knowledge we may have 
acquired, whether in school or out. For no mat- 
ter how much intellectual luggage we carry 
around in our heads, it becomes valuable only if 
we know how to use the information. Only if we 
are able to relate one fact of a problem to the 
others do we truly understand them. 

This is my subject today — the need for greater 
individual and collective understanding of some 
of the international facts of today's life. We need 
to understand our country's purpose and role in 
strengthening the world's free nations, which, 
with us, see our concepts of freedom and human 
dignity threatened by atheistic dictatorship. 

^Made at the 1959 Gettysburg College convocation at 
(Settysburg, Pa., on Apr. 4 (White House press release) . 

If through education, no matter how acquired, 
people develop understanding of basic issues and 
so can distinguish between tlie common, long-term 
good of all, on the one hand, and convenient but 
shortsighted expediency, on the other, they will 
support policies imder which the Nation will pros- 
per. And if people should ever lack the discern- 
ment to understand or the character to rise above 
their own selfish, short-term interests, free gov- 
ernment would become well nigh impossible to 
sustain. Such a government would be reduced to 
nothing more than a device which seeks merely to 
accommodate itself and the country's good to the 
bitter tugs of war of conflicting pressure groups. 
Disaster could eventually result. 

Facts About Mutual Security Program 

Though the subject I have assigned myself is 
neither abstruse nor particularly difficult to com- 
prehend, its importance to our national and indi- 
vidual lives is such that failure to marshal, to or- 
ganize, and to analyze the facts pertaining to it 
could have for all of us consequences of the most 
serious character. We must study, think, and de- 
cide on the governmental program that we term 
"mutual security." 

The true need and value of this program will 
be recognized by our people only if they can an- 
swer this question: "Why should America, at 
heavy and immediate sacrifice to herself, assist 
many other nations, particularly the less devel- 
oped ones, in achieving greater moral, economic, 
and military strength?" 

What are the facts ? 

The first and most important fact is the im- 
placable and frequently expressed purpose of im- 
perialistic communism to promote world revolu- 
tion, destroy freedom, and communize the world. 

April 27, 7959 


Its methods are all-inclusive, ranging through the 
use of propaganda, political subversion, economic 
penetration, and the use or the threat of force. 

The second fact is that our country is today 
spending an aggregate of about $47 billion an- 
nually for the single purpose of presei-ving the 
Nation's position and security in the world. This 
includes the costs of the Defense Department, the 
production of nuclear weapons, and mutual secu- 
rity. All three are mutually supporting and are 
blended into one program for our safety. The size 
of this cost conveys something of the entire pro- 
gi'am's importance — to the world and, indeed, to 
each of us. 

And when I think of this importance to us— 
think of it in this one material figure — this cost an- 
nually for every single man, woman, and child of 
the entire Nation is about $275 a year. 

The next fact we note is that, since the Com- 
munist target is the world, every nation is com- 
prehended in their campaign for domination. The 
weak and the most exposed stand in the most im- 
mediate danger. 

Another fact, that we ignore to our peril, is that, 
if aggression or subversion against the weaker of 
the free nations should achieve successive victo- 
ries, communism would step by step overcome 
once- free areas. The danger, even to the strong- 
est, would become increasingly menacing. 

Clearly the self-interest of each free nation im- 
pels it to resist the loss to imperialistic commu- 
nism of the freedom and independence of any 
other nation. 

Freedom is truly mdivisible. 

Viet-Nam's Two Great Tasks 

To apply some of these truths to a particular 
case, let us consider briefly the country of Viet- 
Nam and the importance to us of the security and 
progress of that country. It is located, as you 
know, in the southeastern comer of Asia, exactly 
halfway round the world from Gettysburg 

Viet-Nam is a country divided into two parts, 
like Korea and Germany. The southern half, 
with its 12 million people, is free but poor. It is 
an underdeveloped countiy ; its economy is weak, 
average individual income being less than $200 a 
year. The northern half has been turned over to 
communism. A line of demarcation nmning 
along the I7th parallel separates the two. To the 

north of this line stand several Communist divi- 
sions. These facts pose to south Viet-Nam two 
great tasks : self-defense and economic growth. 

Understandably the people of Viet-Nam want 
to make their country a thriving, self-sufficient 
member of the family of nations. This means 
economic expansion. 

For Viet-Nam's economic growth, the acquisi- 
tion of capital is vitally necessary. Now, the na- 
tion could create the capital needed for gi-owth by 
stealing from the already meager rice bowls of its 
people and regimenting them into work battal- 
ions. This enslavement is the commune system, 
adopted by the new overlords of Red China. It 
would mean, of course, the loss of freedom within 
the country without any hostile outside action 

Another way for Viet-Nam to get the necessary 
capital is tlirough private investments from the 
outside and through governmental loans and, 
where necessary, gi-ants from other and more for- 
tmiately situated nations. 

In either of these ways the economic problem of 
Viet-Nam could be solved. But only the second 
way can preserve freedom. 

And there is still the other of Viet-Nam's great 
problems — how to support the military forces it 
needs without ci-ushing its economy. 

Because of the i^roximity of large Communist 
military formations in the north, Free Viet-Nam 
must maintain substantial numbers of men under 
arms. Moreover, while the Government has 
shown real progress in cleaning out Commimist 
guerrillas, those remaining continue to be a dis- 
ruptive influence in the nation's life. 

Unassisted, Viet-Nam cannot at this time pro- 
duce and support the military formations essen- 
tial to it or, equally important, the morale — the 
hope, the confidence, the pride — necessary to meet 
the dual tlireat of aggression from without and 
subversion within its borders. 

StUl another fact! Strategically south Viet- 
Nam's capture by the Commimists would bring 
their power several hundred miles into a hitherto 
free region. The remaining countries in South- 
east Asia would be menaced by a great flanking 
movement. The freedom of 12 million people 
woidd be lost immediately and that of 150 million 
otliers in adjacent lands would be seriously en- 
dangered. The loss of soutji Viet-Nam would set 
in motion a crumbling process that could, as it 


Department of State Bulletin 

progressed, have gi'ave consequences for us and 
for freedom. 

Viet-Nam must have a reasonable degree of 
safety now — both for her people and for her prop- 
erty. Because of these facts, military as well as 
economic help is currently needed in Viet-Nam. 

We reach the inescapable conclusion that our 
own national interests demand some help from us 
in sustaining in Viet-Nam the morale, the eco- 
nomic progress, and the military strength neces- 
sary to its continued existence in freedom. 

Viet-Nam is just one example. One-third of the 
world's people face a similar challenge. All 
through Africa and Southern Asia people struggle 
to preserve liberty and improve their standards 
of living, to maintain their dignity as humans. It 
is imperative that they succeed. 

But some uninformed Americans believe that 
we should turn our backs on these people, our 
friends. Our costs and taxes are very real, while 
the difficulties of other peoples often seem remote 
from us. 

But the costs of continuous neglect of these prob- 
lems would be far more than we must now bear — 
indeed more than we could aiford. The added 
costs would be paid not only in vastly increased 
outlays of money but in larger drafts of our youth 
into the military establishment and in terms of 
increased danger to our own security and 

No matter what areas of Federal spending must 
be curtailed — and some should — our safety comes 
first. Since that safety is necessarily based upon 
a sound and thriving economy, its protection must 
equally engage our earnest attention. 

Trade-Deficit Problems of Japan 

As a different kind of example of free-nation 
interdependence, there is Japan, where very dif- 
ferent problems exist, but problems equally vital 
to the security of the free world. Japan is an 
essential counterweight to Communist strength in 
Asia. Her industrial power is the heart of any 
collective effort to defend the Far East against 

Her more than 90 million people occupy a coun- 
try where the arable land is no more than that of 
California. More than perhaps any other indus- 
trial nation, Japan must export to live. Last year 
she had a trade deficit. At one time she had a 
thriving trade with Asia, particularly with her 

nearest neighbors. Much of it is gone. Her prob- 
lems grow more grave. 

For Japan there must be more free- world outlets 
for her products. She does not want to be com- 
pelled to become dependent as a last resort upon 
the Communist empire. Should she ever be forced 
to that extremity, the blow to free- world security 
would be incalculable ; at the least it would mean 
for all other free nations greater sacrifice, greater 
danger, and lessened economic strength. 

Wliat happens depends largely on what the free- 
world nations can and will do. Upon us, upon 
you here in this audience, rests a heavy responsi- 
bility. "We must weigh the facts, fit them into 
place, and decide on our course of action. 

For a coimtry as large, as industrious, and as 
progressive as Japan to exist with the help of 
grant aid by others presents no satisfactory solu- 
tion. Furthermore, for us, the cost would be, 
over the long term, increasingly heavy. Trade is 
the key to a durable Japanese economy. 

One of Japan's gi'eatest opportunities for in- 
creased trade lies in a free and developing South- 
east Asia. So we see that the two problems I have 
been discussing are two parts of a single one — 
the great need in Japan is for raw materials; in 
Southern Asia it is for manufactured goods. The 
two regions complement each other markedly. 
So, by strengthening Viet-Nam and helping in- 
sure the safety of the South Pacific and Southeast 
Asia, we gradually develop the great trade poten- 
tial between tliis region, rich in natural resources, 
and highly industrialized Japan, to the benefit of 
both. In this way freedom in the Western Pacific 
will be greatly strengthened and the interests of 
the whole free world advanced. But such a basic 
improvement can come about only gi-adually. 
Japan must have additional trade outlets now. 
These can be f)rovided if each of the industrial- 
ized nations in the West does its part in liberaliz- 
ing trade relations with Japan. 

One thing we in America can do is to study our 
existing trade regulations between America and 
Japan. Quite naturally we must guard against 
a flooding of our own markets by goods, made in 
other countries, to the point where our own in- 
dustries would dry up. But the mere imposition 
of higher and higher tariffs cannot solve trade 
problems even for us, prosperous though we be. 
We too must export m order to buy, and we must 
buy if we are to sell our surpluses abroad. 

April 27, 7959 


Moreover, unless Japan's exports to us are at 
least maintained at approximately their present 
levels, we would risk the free-world stake in the 
whole Pacific. 

There is another fact that bears importantly 
upon this situation. In international trade our 
competitors are also our customers. Normally, 
the bigger the competitor, the bigger the custo- 
mer. Japan buys far more from us — from the 
United States — than she sells to us. She is our 
second largest customer, second only to Canada. 
Last year she bought $800 million in machinery, 
chemicals, coal, cotton, and other items — and thus 
made jobs for many thousands of Americans. She 
paid for these with American dollars earned 
largely from the goods she sold to us. If she had 
earned more dollars she would have bought more 
goods, to our mutual advantage and the strength- 
ening of freedom. 

Challenge of West Berlin 

Now I turn to one other case, where the hard 
realities of living confront us with still a further 
challenge. I refer to West Berlin, a city of over 
2 million people whose freedom we are pledged to 

Here we have another problem but not a unique 
one. It is part of a continuing effort of the Com- 
munist conspiracy to attain one overriding goal : 
world domination. 

Against this background we understand that the 
mere handing over of a single city could not 
possibly satisfy the Communists, even though they 
would particularly like to eliminate what has been 
called the free world's showcase behind the Iron 
Curtain. Indeed, if we should acquiesce in the 
unthinkable sacrifice of 2 million free Germans, 
such a confession of weakness would dismay our 
friends and embolden the Commmiists to step up 
their campaign of domination. 

The course of appeasement is not only dishon- 
orable; it is the most dangerous one we could 
pursue. The world paid a high price for the 
lesson of Mimich, but it has learned the lesson 

We have learned, too, that the costs of defending 
freedom — of defending America — must be paid 
in many forms and in many places. They are as- 
sessed in all parts of the world — in Berlin, in Viet- 
Nam, in the Middle East, here at home. But 
wherever they occur, in whatever form they ap- 

pear, they are first and last a proper charge against 
the national security of the United States. 

Because mutual security and American security 
are synonymous. 

These costs are high, but they are as nothing to 
those that would be imposed upon us by our own 
indifference and neglect or by weakness of spirit. 

And though weakness is dangerous, this does 
not mean that firmness is mere rigidity, nothing 
but arrogant stubbornness. Another fact, basic to 
the entire problem of peace and security, is that 
America and her friends do not want war. They 
seek to substitute the rule of law for the rule of 
force, the conference table for the battlefield. 

These desires and their expressions are not prop- 
aganda. They are aspirations felt deeply within 
us; they are the longings of entire civilizations 
based upon a belief in God and in the dignity of 
man. Indeed, they are the instinctive hopes that 
people feel in all nations, regardless of curtains. 
People everywhere recoil from the thought of war 
as much as do any of us present here in this peace- 
ful gathering. 

Tensions are created primarily by governments 
and individuals that are ruthless in seeking 
greater and more extensive power. Berlin is a 
tension point because the Kremlin hopes to elim- 
inate it as part of the free world. And the Com- 
munist leaders have chosen to exert pressure there 
at this moment. Naturally they always pick the 
most awkward situation, the hard-to-defend posi- 
tion, as the place to test our strength and to try 
our resolution. There will never be an easy place 
for us to make a stand, but there is a best one. 

That best one is where principle points. Deep 
in that principle is the truth that we cannot afford 
the loss of any free nation, for whenever freedom is 
destroyed anywhere we are ourselves, by that 
much, weakened. Every gain of commmiism 
makes furtlier defense against it harder and our 
security more uncertain. 

True Meaning of Mutual Security 

A free America can exist as part of a free world, 
and a free world can continue to exist only as it 
meets the rightful demands of people for security, 
progress, and prosperity. That is why the devel- 
opment of south Viet-Nam and Southeast Asia is 
important, why Japanese export trade is impor- 
tant, why firmness in Berlin is important. 


Deparfment of Sfate Bulletin 

It is why Communist challenges must always 
be answered by the free world standing on prin- 
ciple, united in strength and in purpose. 

This is the true meaning of mutual security. 

It is the idea that, by helping one another build 
a strong, prosperous world community, free people 
will not only win through to a just peace but can 
apply their wonderful, God-given talents toward 
creating an ever-growing measure of man's hu- 
manity to man. 

But this is something that will come only out of 
the hard intellectual effort of disciplined minds. 
For the future of our country depends upon en- 
lightened leadership, upon the truly understand- 
ing citizen. 

We look to the citizen who has the ability and 
determination to seek out and to face facts, who 
can place them in logical relationship one to an- 
other, who can attain an imderstanding of their 
meaning and then act courageously in promoting 
the cause of an America that can live, under God, 
in a world of peace and justice. These are the 
individuals needed in uncounted numbers in your 
college, your country, and your world. 

Over the 127 years of Gettysburg College's ex- 
istence, its graduates have, in many ways, served 
the cause of freedom and of justice. May the 
years ahead be as f ruitfvil as those which you now 
look back upon with such pride and with such 

The Challenge of Soviet Power 

ty Allen W. Dulles 

Director of Central Intelligence ^ 

The challenge of Soviet power presents today 
a triple threat : first, military ; second, economic ; 
and tliird, subversive. 

This challenge is a global one. As long as the 
principles of international commimism motivate 
the regimes in Moscow and Peiping, we must ex- 
pect that their single purpose will be the liquida- 
tion of our form of free society and the emergence 
of a Sovietized, communized world order. 

They change their techniques as circmnstances 
dictate. They have never given us the slightest 
reason to hope that they are abandoning their 
overall objective. 

We sometimes like to delude ourselves into 
thinking that we are faced with another national- 
istic power struggle, of which the world has seen 
so many. The fact is that the aims of the Com- 
munist International with its headquarters in 
Moscow are not nationalistic ; their objectives are 
not limited. They firmly believe and eloquently 

^ Address made before the Edison Electric Institute at 
New Orleans, La., on Apr. 8. 

preach that communism is the system which will 
eventually rule the world, and each move they 
make is directed to tliis end. Communism, like 
electricity, seeks to be an all-pervasive and revo- 
lutionaiy force. 

To promote their objectives they have deter- 
mined — cost what it may — to develop a military 
establishment and a strong national economy 
which will provide a secure home base from which 
to deploy their destructive foreign activities. 

Soviet Military Establisiiment 

To achieve this objective they are devoting 
about twice as much of their gross national prod- 
uct to military ends as we do. The U.S.S.R. mili- 
tary effort as a proportion of GNP is greater than 
that of any other nation in the world. Their con- 
tinuous diversion of economic resources to mili- 
tary support is without any parallel in peacetime 

We estimate that the total value of their cur- 
rent annual military effort is roughly equivalent 

April 27, 1959 


to our own. They accomplish this with a GNP 
which is now less than half of our own. 

Here are some of the major elements which go 
into their military establishment. The Soviet 
Union maintains an army of 2% million men, and 
the tradition of universal military training is be- 
ing continued. The Soviet Army today has been 
fully reequipped with a post- World War II ar- 
senal of guns, tanks, and artillery. We have 
reason to believe the army has already been 
trained in the use of tactical nuclear weapons. 

They have the most modern types of aircraft 
for defense : night and day fighters, a very large 
medium-bomber force, and some long-range bomb- 
ers. They have built less of these long-range 
bombers than we had expected several years ago 
and have diverted a major effort to the perfection 
of ballistic missiles. 

Their submarine strength today is many times 
that with wliich Germany entered World War II. 
They have over 200 long-range, modernized sub- 
marines and a like number of less modern craft. 
They have made no boasts about nuclear powered 
submarines, and on all the evidence we are justi- 
fied in concluding that we are ahead of them in 
this field. We must assmne, however, that they 
have the capability to produce such submarines 
and will probably unveil some in the near future. 

Ballistic Missile Situation 

I would add a word on the ballistic missile situ- 

When World War II ended the Soviet acquired 
much of the German hardware in the missile 
field — V-1 and V-2 — and with them many Ger- 
man technicians. From that base, over the past 
10 years, they have been continuously developing 
their missile capability, starting with short-range 
and intermediate-range missiles. These they have 
tested by the hundreds and have been in produc- 
tion of certain models for some time. 

They also early foresaw that, in their particular 
geographical position, the long-range ballistic mis- 
sile would become their best instrument in the 
power struggle with their great rival, the United 
States. As the size and weight of powerful nu- 
clear weapons decreased with the improvement of 
the art, they became more and more persuaded of 
tliis. Hence they have concentrated on these 
weapons, have tested some, and assert that they 
now have ICBM's in serial production. 

They hope in this way eventually to be able to 

hold the U.S. under the threat of nuclear attack by 
ICBM's while they consolidate their position in 
the fragile parts of the non-communistic world. 

Before leaving the military phase of the Soviet 
threat, I want to dispel any possible misinterpre- 
tations. First, 1 do not believe that the Soviet now 
have military superiority over us; and second, I 
do not believe that they desire deliberately to pro- 
voke hostilities with the U.S. or the Western 
World at this time. They are well aware of our 
deterrent force. They probably believe that the 
risks to them, even if they resorted to surprise 
attack, would be unacceptable. 

Taking into account our overall military 
strength and our strategic position vis-a-vis the 
Soviet Union, I consider that our military posture 
is stronger and our ability to inflict damage is to- 
day greater than that of the Soviet Union. 

Furthermore, we have allies. The strength, the 
dependability, and the dedication of our allies put 
them in a very different category than the im will- 
ing and undependable allies of Moscow, even 
including the Chinese Communists. 

But as the Soviet military capabilities and their 
nuclear power grow, they will feel that their for- 
eign policy can be somewhat more assertive. In 
1956, during the Suez crisis, we had the first Soviet 
missile-rattling as a new tactic of Moscow diplo- 
macy. Since then there have been the Taiwan 
Straits and Berlin crises and today the aggressive 
Communist penetration of Iraq. Hence we must 
assume that they will continue to probe and to test 
us, and they may even support other countries in 
aggi'ession by proxy. They will put us to the test. 

There are two points to keep in mind as we view 
the military future. Firstly, with a much lower 
industrial base than we, they are producing a mili- 
tary effort which is roughly equivalent to our own ; 
and secondly, they have conditioned their people 
to accept very real sacrifices and a low standard of 
living to permit the massive military buildup to 
continue. If the Soviet should decide to alter their 
policy so as to give their own people a break in the 
consumer field with anything like the share in their 
gross national product which we, as a people, 
enjoy, the prospects of real peace in our time would 
be far greater. 

Soviet "Economic Order of Battle" 

I will turn now to some of the highlights of 
the economic aspect of the Soviet challenge. 


Department of State Bulletin 

The new confidence of Khrushchev, the shrewd 
and vocal leader of the Soviet Communist Party 
and incidentally Head of Government, does not 
rest solely on his conviction that he, too, possesses 
a military deterrent. He is convinced that the 
final victory of communism can be achieved mainly 
by nonmilitary means. Here the Soviet economic 
oifensive looms large. 

The proceedings of the recent 21st Party Con- 
gress laid out what we might call the Soviet eco- 
nomic order of battle. 

Khrushchev explained it in these words, to sum- 
marize the 10 hours of his opening and closing 
remarks : 

The economic might of the Soviet Union is based on 
the priority growth of heavy industry ; this should insure 
the Soviet victory in peaceful economic competition with 
the capitalist countries ; development of the Soviet eco- 
nomic might will give communism the decisive edge in 
the international balance of power. 

In the short space of 30 years the Soviet Union 
has grown from a relatively backward position 
into being the second largest industrialized econ- 
omy in the world. While their headlong pace of 
industrialization has slowed down moderately in 
the past few years, it still continues to be more 
rapid than our own. During the past 7 years, 
through 1958, Soviet industry has grown at the 
annual rate of 9% percent. This is not the of- 
ficially annomiced rate, which is somewhat larger. 
It is our reconstruction and deflation of Soviet 

Our own industrial growth has been at the an- 
nual rate of 3.6 percent for the 7 years through 
1957. If one included 1958, the comparison with 
the rate of Soviet growth would be even less 

Investment for National Policy Purposes 

I do not conclude from this analysis that the 
secret of Soviet success lies in greater efficiency. 
On the contrary. In comparison with the leading 
free-enterprise economies of the West the Com- 
munist state-controlled system is relatively 

The secret of Soviet progress is simple. It lies 
in the fact that the Kremlin leaders direct a far 
higher proportion of total resources to national 
policy purposes than does the United States. I 
define national policy purposes to include, among 
other things, defense and investment in heavy 

With their lower living standards and much 
lower production of consumer goods, they are in 
effect plowing back into investment a large section 
of their production — 30 percent — while we in the 
United States are content with 17 to 20 percent. 
Soviet investment in industry as planned for 1959 
is about the same as U.S. investment in industry 
during 1957, which so far was our best year. 

Although the Soviets in recent years have been 
continually upping the production of consumer 
goods, their consuming public fares badly in com- 
parison with ours. Last year, for example, Soviet 
citizens had available for purchase barely one- 
third the total goods and services available to 
Americans. Furthermore, most of the U.S. out- 
put of durable consumer goods is for replacement, 
while that of the U.S.S.R. is for first-time users. 
In summary, the Soviet economy is geared largely 
to economic growth and for military purposes; 
ours is geared largely to increasing consumer 
satisfactions and building a higher standard of 

Here are some examples : 

Wliile the Soviets last year were producing only 
1 automobile for every 50 we produced, they were 
turning out 4 machine tools to our 1. 

This contrast in emphasis carries through in 
many other fields. Our capital expenditure for 
transportation and communications is more than 
double the comparable Soviet expenditure. Yet 
this is largely accounted for by our massive high- 
way building program, which has been running 
15 to 20 times the U.S.S.R. spending, whereas 
their annual investment in railroad rolling stock 
and fixed assets substantially exceeds ours. 

At the moment they do not feel much incentive 
in the roadbuilding field. They have no interest 
in having their people travel around on a massive 
scale. Also this would put pressure on the Krem- 
lin to give the people more automobiles. 

Commercial investment, which includes stores, 
shopping centers, drive-in movies, and office build- 
ings, has been absorbing over $6 billion a year in 
the U.S., and only $2 billion in the U.S.S.R. 

Our housing investment is roughly twice that 
of the Soviet, even though living space per capita 
in the U.S. is already four times that of the 

Industrial Production Trends 

What of the future? In Khrushchev's words, 
"The Soviet Union intends to outstrip the United 

April 27, 7959 


States economically. . . . To surpass the level 
of production in the United States means to ex- 
ceed the highest indexes of capitalism." 

Khrushchev's ambitious 7-year plan establishes 
the formidable task of increasing industrial pro- 
duction about 80 percent by 1965. 

Steel production, according to the plan, is to 
be pushed close to 100 million net tons. Cement 
output is set at a level somewhat higher than in- 
dustry forecasts place United States production 
in 1965. 

The energy base is to be revolutionized. Crude 
oil and natural gas will constitute more than one- 
half of the total energy supply, and relatively 
high-cost coal will be far less important than now. 

By 1965 the U.S.S.R. plans to produce about 
480 billion kilowatt hours of electricity. As a 
study comparing U.S. and U.S.S.E. electric power 
production prepared by a leading industrial re- 
search group pointed out, this means that the 
absolute gap between the U.S. and U.S.S.R. in 
the quantities of electricity generated will increase 
somewhat in our favor over the next 7 years. 

This interesting study received a considerable 
amount of deserved publicity. We agree with its 
conclusion. However, what is true about electric 
power is not true across the board, as some com- 
mentators concluded. 

For example, compare primary energy produc- 
tion trends in the two countries. Soviet produc- 
tion of coal, petroleum, natural gas, and hydro- 
electric power, expressed in standard fuel units, 
amounted to 45 percent of the U.S. production in 
1958. By 1965 it will be close to 60 percent. 
The absolute gap in primary energy has been clos- 
ing since 1950. At the present pace it will con- 
tinue to narrow over the next 7 years. 

Similarly, the absolute gap in steel production 
has been shrinking over the past 5 years. The 
maximum gap in steel capacity apparently was 
reached in 1958. 

The comforting illusion spread by the "disciples 
of the absolute gap" should not serve as a false 

Soviet Exaggerations 

At the same time it is important not to exagger- 
ate Soviet prospects in the economic race. In 
the propaganda surrounding the lamiching of the 
7-year plan, Kliruslichev made a number of state- 
ments about Soviet economic power which were 

nothing more than wishful thinking. Specifically 
he stated that "after the completion of the 7-year 
plan, we will probably need about 5 more years to 
catch up with and outstrip the United States in 
industrial output." "Thus," he added, "by that 
time [1970], or perhaps even sooner, the Soviet 
Union will advance to first place in the world both 
in absolute volume of production and in per capita 

First of all, to reach such improbable conclu- 
sions the Kremlin leaders overstate the present 
comparative position. They claim U.S.S.R. in- 
dustrial output to be 50 percent of that of the U.S. 
Our own analyses of Soviet industrial output last 
year concluded that it was not more than 40 per- 
cent of our own. 

Secondly, Khrushchev forecasts that our future 
industrial growth will be only 2 percent a year. 
If this is true, the United States will be virtually 
committing economic suicide. This prediction I 
regard as unrealistic. 

A saner projection would place 1965 Soviet in- 
dustrial production at about 55 percent of our 
own. By 1970, assuming the same relative rates 
of growth, U.S.S.R. industrial output as a whole 
would be about 60 percent of that in the United 

Further, when Khrushchev promises his people 
the world's highest standard of living by 1970, 
this is patently nonsense. It is as though the 
shrimp had learned to whistle, to use one of his 
colorful comments. 

implications of Soviet Economic Progress 

These Soviet exaggerations are a standard tool 
of Communist propaganda. Such propaganda, 
however, should not blind us to the sobering impli- 
cations of their expected economic progress. 

First of all, rapid economic growth will pro- 
vide the Kremlin leaders with additional re- 
sources with which to intensify the arms race. 
If recent trends and present Soviet policies con- 
tinue, Soviet military spending could increase by 
over 50 percent in the next 7 years without in- 
creasing the relative burden on their economy. 

Secondly, some additional improvement can be 
made in the standards of living of the Russian 
people, even with continued emphasis on heavy 
industry and armaments. It is only since the 
death of Stalin in 1953 that serious attention has 
been given to improving living standards. The 


Deparfmenf of %ia\e Bulletin 

moderate slowdown in the headlong growth of 
heavy industry which then ensued has been caused 
in large part by the diversion of more resources 
to housing, to agriculture, and to consumer goods. 

Living standards, based on present Soviet plans, 
are expected to increase about one-third over the 
next 7 years. This level, if achieved, will stUl be 
far below that which our own citizens are now en- 
joying, but it will look good to people who for 
long have been compelled to accept very low 

Finally, the Soviet 7-year plan, even if not 
fully achieved, will provide the wherewithal to 
push the expansion of trade and aid with the im- 
committed and imderdeveloped nations of the 
free world. By 1965 Soviet output of some basic 
raw materials and some industrial products will 
be approaching, and in a few cases exceeding, that 
of the United States. Most prominently, these 
products will be the kind that are needed for in- 
dustrialization in the less developed countries. 

The outcome of this contest — the Communist 
challenge in underdeveloped areas — is crucial to 
the survival of the free world. 

Communist Trade-and-Aid Programs 

This is an unprecedented epoch of change. 
Within little more than 10 years, over three-quar- 
ters of a billion people in 21 nations have become 
independent of colonial rule. In all of these 
newly emergent coimtries there is intense nation- 
alism coupled with the determination to achieve a 
better way of life, which they believe industrial- 
ization will bring them. 

The leaders of world commmiism are alert to 
the opportunity which this great transformation 
provides them. They realize the future of com- 
mimism can be insured only by expansion and 
that the best hope of such expansion lies in Asia 
and Africa. Wliile they are attempting to focus 
all our concern on Berlin, they are moving into 
'Iraq with arms, economic aid, and subversion and 
giving added attention to Africa. 

The Communist bloc trade-and-aid programs in 
undeveloped countries moved into high gear dur- 
ing 1958. The equivalent of over $1 billion in 
new credits was extended to underdeveloped 
countries by the bloc in this year. In the 4-year 
period ending 1958 the total of grants and credits 
totaled $2.5 billion, of which $1.6 billion came 
from the U.S.S.R. and the balance from the satel- 

lites and China. Three-fifths of the total deliv- 
ered to date has been in the form of arms to the 
U.A.R. — Egypt and Syria — Yemen, Iraq, Af- 
ghanistan, and Indonesia. These same coimtries, 
plus India, Argentina, Ceylon, Burma, and Cam- 
bodia, have received the bulk of the economic aid. 

Over 4,000 bloc technicians have been sent to 
assist the development of nations in the free 
world. About 70 percent of these teclinicians are 
engaged in economic activities. Others are reor- 
ganizing local military establishments and teach- 
ing bloc military doctrine to indigenous personnel. 

The bloc also has a well-developed program for 
training students from underdeveloped countries. 
About 3,200 students, technicians, and military 
specialists have now received such training behind 
the Iron Curtain. 

Wliile these figures are still well below the total 
of our own aid, loan, and training programs, this 
massive economic and military aid program is con- 
centrated in a few critical countries, and of course 
these figures do not include Soviet aid and trade 
with the East European satellites and Communist 

India, which has received over $325 million of 
bloc grants and credits, is a primary recipient. 
The Soviet economic showplace here is the Bhilai 
steel mill, being built by the Russians. The 
U.A.R. over the past 4 years received over $900 
million in aid and credits. This investment today 
does not seem quite as profitable to the Soviet as 
it did last year. 

Iraq provides a prime example of the oppor- 
tunistic nature of the bloc's aid program. Prior 
to the coup d'etat on July 14th last year, Iraq's 
economic involvement with Communist nations 
had been negligible. In the past few months the 
U.S.S.R. has provided over $250 million in mili- 
tary and economic development credits. The 
Iraq Development Board has dropped its two 
Western advisers. Western technicians are also 
being dismissed and contracts with many Western 
firms canceled. Increasingly, Moscow is pressur- 
ing the Iraq Government to accept dependence on 
Commimist support, and the number of fellow 
travelers in high government posts is growing. 

Communist Campaign of Subversion 

The Soviet policy of economic penetration fits 
like a glove into their worldwide campaign of 
subversion, wliich is the tliird main element of 

April 27, 1959 


the triple Soviet challenge: military, economic, 
and subversive. 

International communism has not changed its 
operating procedure since the days of the Comin- 
tern and the Cominform. The Communist Party 
of the U.S.S.R., of which Khrushchev is the leader, 
is the spearhead of the movement. It has a world- 
wide mission, formulated by Lenin and Stalin 
and now promoted by Khrushchev but with more 
subtle teclmiques than those of Stalin. Tliis 
mission continues to be the subversion of the en- 
tire free world, starting of course with those 
coimtries which are most vulnerable. 

Its arsenal of attack is based, first of all, on the 
Communist Parties of the Soviet Union and Com- 
munist China. These in turn direct the hard-core 
Communist organizations which exist in practi- 
cally every country of the world. Every Com- 
munist Party maintains its secret comiections 
with Moscow or, in case of certain of the Com- 
munist parties in the Far East, with Peiping. 

These parties also have an entirely overt as- 
sociation with the international Communist 
movement. At the 21st meeting of the Soviet 
Party Congress there were present representatives 
of some 60 Communist parties throughout the 
world, including two representatives of the U.S. 
Commmiist Party. The single theme of tliese 
Communist leaders was their confidence in the 
eventual worldwide trimnph of the Communist 

From time to time Moscow has made agree- 
ments, such as the Litvinov pact in 1933, not to 
interfere in the internal affairs of other coimtries. 
On the strength of this we resumed relations with 
the Soviet. They are eager to conclude like agree- 
ments of "friendship and nonaggression" with 
all countries of the world. These are not worth 
the paper they are written on. During World 
War II Moscow abolished the international Com- 
intern to propitiate the United States, its then 
wartime ally. Its functions have, however, been 
carried on continuously under other forms. 

In addition to its worldwide penetration 
through Conununist Party organizations, the 
Communists in Moscow and Peiping have set up 
a whole series of front organizations to penetrate 
all segments of life in the free countries of the 
world. These include the World Federation of 
Trade Unions, which claims some 90 million 
members throughout the world. International 

organizations of youth and students stage great 
festivals at frequent intervals. This smnmer they 
are to meet in Vienna. This is the first time they 
have dared meet outside of the Iron Curtain. 

They have the Women's International Demo- 
cratic Federation, the World Federation of 
Teachers Unions, the International Association of 
Democratic Lawyers, and Communist journalists 
and medical organizations. Then cutting across 
professional and social lines, and designed to 
appeal to intellectuals, the Communists have cre- 
ated the World Peace Comicil, which maintains 
so-called peace committees in 47 countries, gaining 
adherents by trading on the magic word of 

To back up this massive apparatus the Soviet 
has the largest number of trained agents for 
espionage and secret political action that any 
country has ever assembled. In Moscow, Prague, 
and Peiping, and other Communist centers, they 
are training agents recruited from scores of other 
comitries to go out as missionaries of communism 
into the troubled areas of the world. Much of 
the Middle East and Southeast Asia, and partic- 
ularly black Africa, are high on their target list. 
They do not neglect tliis hemisphere, as recent dis- 
closures of Communist plotting in Mexico show 
us. Tlieir basic purpose is to destroy all existing 
systems of free and democratic government and 
disi'upt the economic and political organizations 
on which these are based. Behind their Iron 
Curtain they ruthlessly suppress all attempts to 
achieve more fi-eedom — witness Hungary and now 

The task of destruction is always easier than 
that of construction. The Communist world, in 
dealing with the former colonial areas and the 
newly emerging nations of the world, has appeal- 
ing slogans to export and vidnerable economic 
conditions to exploit. The fragile parliamentary 
systems of new and emerging countries are fertile 
ground for these agitators. 

Also under the heading of subvereion we must 
not overlook the fact that the Communist leaders 
have sought to advance their cause by local wars 
by proxy — Korea, Viet- Nam, Malaya are typical 

In conclusion I wish to emphasize again the 
pressing need for a clearer miderstanding of the 
real purpose of the Sino-Soviet program. There 
is no evidence that the present leaders of the Com- 


Department of State Bulletin 

munist world have the slightest idea of abandon- 
ing their goal or of changing the general tactics 
of achieving them. 

Those who feel we can buy peace by compromise 
with Khrushchev are sadly deluded. Each con- 
cession we give him merely strengthens his posi- 
tion and prestige and the ability of the Soviet 
regime to continue its domination of the Russian 
people, whose friendship we seek. 

Our defense lies not in compi'omise but in under- 
standing and firmness, in a strong and ready deter- 
rent military power, in the marshaling of our 
economic assets with those of the other free 
countries of the world to meet their methods of 
economic penetration, and finally in the unmask- 
ing of their subversive techniques. 

The overall power of the free world is still vastly 
superior to that under the control of the leaders 
of international commimism. If they succeed and 
we fail, it will only be because of our complacency 
and because they have devoted a far greater share 
of their power, skill, and resources to our destruc- 
tion than we have been willing to dedicate to our 
own preservation. 

They are not supermen. Recently they have 
made a series of blunders which have done what 
words could not do to help us mimask their true 
intentions. These very days Communist actions 
in Iraq and Tibet have particularly aroused Mus- 
lims and Buddhists against international commu- 
nism. The institution of the so-called commune 
system on the China mainland has shocked the 
free world, and even the Soviet leaders apologeti- 
cally refuse to endorse it. 

Despite the problems surrounding the Berlin 
issue. Western Europe is stronger than it ever has 
been since World War II. Much of free Asia and 
the Middle East is becoming alerted to the true 
significance of communism. 

The outcome of the struggle against interna- 
tional communism depends in great measure upon 
the steadfastness of the United States and its will- 
ingness to accept sacrifices in meeting its respon- 
sibility to help maintain freedom in the world. 

U.S. and Canadian National Libraries 
Exchange Gifts of Researcli Materials 

The U.S. Library of Congress announced on 
April 7 that gifts of important research materials 
for the national libraries of the United States and 
Canada would be exchanged in ceremonies at Ot- 
tawa on April 8 as part of the celebration of Na- 
tional Library Week being observed in both 
countries from April 12 to 18. 

Roy P. Basler, director of the reference depart- 
ment of the Library of Congress and an honorary 
member of the Lincoln Sesquicentennial Commis- 
sion, presented to Canada's Prime Minister John 
Diefenbaker, on behalf of the Library of Congress, 
a significant group of Lincoln materials for the 
National Library of Canada. On its belialf, the 
Prime Minister presented an important body of 
materials relating to U.S. economic history to Dr. 
Basler for the Library of Congress. 

Canada's gift to the Library of Congress was a 
microfilm of the Baring Papers from the collection 
in the public archives of Canada. Relating to the 
period from 1818 to 1872 and consisting of 88,000 
pages, these documents concern operations in Can- 
ada, the United States, and Latin America of 
Baring Brothers and Co., Ltd., the venerable 
mercantile banking house of London, and are of 
great importance in the study of the economic 
history of the United States. 

The Library of Congress presented to Canada 
a variety of historical source materials relating 
to Lincoln. Included were a microfilm of the 
Robert Todd Lincoln Collection of the Papers of 
Abraham Lincoln, a collection of more than 18,000 
documents which for the most part have never been 
published; The Collected Works of Abraham, 
Lincoln^ in eight volumes, edited under the direc- 
tion of Dr. Basler ; a facsimile of Lincoln's scrap- 
book containing clippings of the famous Lincoln- 
Douglas debates; a reproduction of a letter from 
Queen Victoria written in 1865 to Mrs. Lincoln; 
and a catalog of the Sesquicentennial Exhibition 
in the Library of Congress. 

kptW 27, 7959 


Soviet Diplomacy: A Cliailenge to Freedom 

hy Francis 0. Wilcox 

Assistant Secretary for International Organization Affairs ^ 

There is no more important question in world 
politics today than the subject of this meeting — 
the future of Soviet-American relations. I be- 
lieve that the character of the relations between 
the U.S.S.E. and the United States and our allies 
will determine the nature of man's life on this 
planet for generations to come. It may indeed 
determine whether that life itself will continue or 
be abruptly snuffed out. In resolving this question 
the role of diplomacy is highly important. 

Therefore I would like to explore with you cer- 
tain aspects of Soviet diplomacy which have a 
significant bearing on Soviet relationships with 
the free world. 

The Central Challenge 

Reduced to its essentials, the key question con- 
fronting us is this : Can a democratic, free-enter- 
prise, open society successfully compete in diplo- 
macy with a totalitarian, centrally controlled so- 
ciety which is able to marshal its total resources 
in support of its foreign policy objectives? 

In a little more than 40 years the U.S.S.R. has 
changed from a comparatively backward, agri- 
cultural country to the second-ranking industrial 
nation in the world. Its gross national product is 
now increasing between 6 and 7 percent annually. 
Mr. Khrushchev confidently looks forward to the 
day when the economy of the Soviet Union will 
surpass that of the United States. Soviet tech- 
nical capacity is forcefully demonstrated by the 
fact the Soviet Union laimched the first satellite 
into outer space. Soviet development of inter- 
continental ballistic missiles underscores its pres- 
ent military potential. 

' Address made before the American Academy of Po- 
litical and Social Science at Philadelphia, Pa., on Apr. 10 
(press release 253 dated Apr. 9) . 

Every facet of the U.S.S.R.'s regimented soci- 
ety — economic, scientific, social, cultural, and 
psychological — as well as political and military — 
is at the constant and immediate disposal of So- 
viet diplomacy. 

In contrast, in the conduct of foreign policy our 
Government is accountable to the Congress and 
the people of the United States, whom its Mem- 
bers represent. It must also take into account 
varied sectional and group interests. Mr. Khru- 
shchev, however, is accountable mainly to himself, 
and perhaps a few of his Kremlin colleagues. 

Mr. Khrushchev's ability to take independent 
decisions enables him to move swiftly in using 
trade with other nations to advance the U.S.S.R.'s 
foreign policy objectives. The Soviets offer guns 
and grains to carefully selected countries in order 
to reap maximiun political advantages. They ex- 
tend long-term, low-interest loans. They buy up 
surplus commodities — which they may not need — 
if it is in their national interest to do so. Wliether 
or not these transactions are essential to their 
economy is immaterial to the Soviets. "We value 
trade least for economic reasons and most for po- 
litical purposes," Mr. Khrushchev has said. 

On this basis it may seem that the struggle is 
an unequal one. A free society, which must con- 
stantly be responsive to the pressures of public 
opinion, cannot move with the speed and mono- 
lithic force of a totalitarian state. 

Let me emphasize, however, that free societies 
have invariably proved more resilient, creative, 
and enduring than those under the deadening 
hand of dictatorship. 

The United States has simultaneously achieved 
the greatest industrial capacity and the liighest 
standard of living known to man. We have built 
a defense establisliment which protects us and 
the free world against the threat of surprise at- 


Department of State Bulletin 

tack. In cooperation with other free ncations we 
have developed a system of collective security 
arrangements which serve as a formidable deter- 
rent to Conununist aggi-ession anywhere. Our 
Marshall plan prevented a Communist takeover of 
an economically exhausted and prostrate Western 
Europe after World War II, and our foreign aid 
programs have enabled free nations to develop 
on an increasing scale their economic and social 

These achievements can scarcely be called the 
dying gasps of a decadent capitalism as the 
Soviets would liave it. On the contrary, they 
offer to the free world its greatest hope for a just 
peace and a cooperative way of life for free men 
in the future. 

Of course, the diplomatic arrangements of the 
f 1 ee world may at times appear cumbersome. This 
is inherent in the nature of the alliance. Never- 
theless, free-world diplomacy has demonstrated 
tremendous strength. The position of the free 
world is based on real and mutual interests. Our 
allies are partners and not puppets. Each coun- 
try understands the stakes. Each appreciates the 
basis for action. Each wants to cooperate in a 
positive way in the common interest. Tlie recent 
10th anniversary meetings of the NATO Council 
clearly demonstrate this.^ 

The handicaps of freedom in this struggle are 
therefore apparent rather than real. Its strengths 
are great. Not the least of these is the faith of 
the free world's people in the virtue and durabil- 
ity of freedom itself — a faith based on experience. 
In my judgment, this faith — this belief in the 
dignity and worth of the human being — is an 
element of strength which gives our military 
power vitality and direction. This is an unbeat- 
able combination which the Soviet Union does 
not have. 

Changes in Soviet Diplomacy 

In 1946 Josef Stalin asserted that the wartime 
partnership between the U.S.S.R. and its Western 
allies had been a mere expedient. This set the 
pattern of postwar Soviet diplomacy. He served 
notice that war was inevitable until international 
communism had supplanted capitalism. Stalin 
even went so far as to blueprint the economic 
planning which would give to the Soviet Union 
a mighty arsenal to wage the "inevitable" war. 

' Bulletin of Apr. 20, 1959, p. 543. 
April 27, 1959 

Stalin's successors, on the other hand, have con- 
sistently preached the virtue of "peaceful co- 
existence." Nevertheless the long-range goal of 
Soviet foreign policy has remained constant — • 
world domination. Soviet foreign policy has been 
made up largely of a series of probes seeking out 
free- world vulnerabilities or attempting to create 
them. Its record is studded with such probes: 
Iran, Greece, the Berlin blockade, and — through 
its Far Eastern partner, the Red Chinese— ag- 
gressive actions against Korea, Viet-Nam, the 
Taiwan Strait, and Tibet — to mention only a few. 
The latest and most immediate of these is the 
current crisis in Germany. 

The German Crisis 

Let us examine just what the situation in Berlin 

First of all, it is a deliberately staged and care- 
fully timed Soviet maneuver designed in part to 
divide the free world. The Soviet rulers are well 
aware that communism flourishes in conditions of 
tension and unrest. They have never hesitated to 
attempt to create such conditions when they con- 
sidered this to be in their interest. 

By artificially creating a "crisis" over Berlin, 
they seek to divert attention from the real issues 
of German unification and European security. 
They seek to draw us into negotiations on isolated 
aspects of these problems whenever they think they 
have an advantage. Berlin is but one aspect, and 
certainly not the basic one, of the German problem 
as a whole. Many suggestions have been advanced 
for a solution of the "Berlin problem," including 
some involving the United Nations. However, for 
the reasons I have mentioned the United States is 
not interested in discussing formulas for Berlin as 
an isolated question. 

Second — and most important — the Soviet Union 
is hoping to build up the international status 
of the East German regime and thereby bring 
about the permanent division of Germany. This 
is the only way its puppet regime, the so-called 
"German Democratic Republic," can survive. In 
the longer run the future of the satellite empire of 
Eastern Europe likewise hangs in the balance. 

Finally, the Soviet Union hopes to eliminate 
the monument to freedom which West Berlin con- 
stitutes deep inside the Communist bloc. How- 
ever, as long as West Berlin and the Federal Re- 
public of Germany are allied with the West and 


remain strong in their determination to maintain 
their freedom, they will stand as a symbol of the 
right of the German people freely to determine 
their future. Given this situation, the Soviets will 
not be able to achieve their objectives. 

That is why the Soviet Union is now trying to 
launch a course of events designed to extend its 
rule to Germany as a whole and to exclude free- 
world influence in the area. The aim of the Soviet 
Union is not only to bring about the withdrawal of 
all Western forces from Berlin but also the with- 
drawal of all American forces from the Continent. 

Having said this, it should be clear how vital a 
stake we have at this moment in Germany and in 
Berlin. Our forces are in West Berlin as a matter 
of right, on the basis of solemn international ob- 
ligations to which the Soviet Union is a party. 
Mr. Khrushchev's proposals mean simply that 
the Soviet Union is now threatening, deliberately 
and unilaterally, to disregard these obligations if 
we do not agree to conclude a "peace treaty" with 
Germany on Soviet terms. 

President Eisenhower emphasized an important 
principle in his speech to the Nation on March 16.^ 
He made clear that we cannot accept the right of 
any government to break, unilaterally, solemn 
agreements to which we and others are parties. 
This principle must be upheld. 

You will recall that for more than a decade the 
Western powers have been trying, in every feasible 
way, to bring about the unification of Germany. 
The Soviet Union has frustrated every such effort. 
One scarcely need ask why. 

Establishment of a free, unified Germany does 
not coincide with the long-range objectives of the 
Soviet Union. At the least it would mean post- 
poning the communization of Europe, which re- 
mains a Soviet goal of long standing. 

The course we should pursue in these circum- 
stances is clear. We must never succumb to Soviet 
blandishments. Our heritage of freedom requires 
us to stand firm. At the same time we must make 
unmistakably clear our willingness and readiness 
to engage, as reasonable men should, in meaningful 

Such negotiations must have as their primary 
purpose the maintenance of our rights in Berlin 
until the unification of Germany is achieved under 
conditions which will assure its people of their 
right to a government of their own choosing. We 

cannot and we will not betray the trust of those 
millions of free Germans who depend upon the free 
world to protect them. 

Since World War I we have repeatedly seen 
that hesitation and lack of resolution on the part 
of free countries invite aggression. As President 
Eisenlaower recently declared,* 

... all history has taught us the grim lesson that no 
nation has ever been successful in avoiding the terrors of 
war by refusing to defend its rights. . . . The risk of 
war is minimized if we stand firm. 

Even with good faith on both sides — which the 
Soviet Union has not always demonstrated — we 
cannot hope to settle the complex problem of Ger- 
many overnight. We can, however, continue to 
expect that a sound beginning can be made. Firm- 
ness, combined with reasonableness, now may be 
the most important key to meaningful negotiations 
with the Soviet Union. To follow any other course 
would invite the gravest perils to all we hold dear. 


The problem of disarmament gives us yet 
another vantage point from which to view the 
challenge of Soviet diplomacy to the free world. 
Here the use of diplomacy to achieve the objec- 
tives of international communism has been sub- 
ordinated to certain traditional Russian attitudes 
and concepts. These apparently must be main- 
tained in order to perpetuate the present Soviet 

Traditionally both imperial and Soviet Russia 
have suspected, distrusted, and even feared nearly 
everything foreign. They have normally regarded 
the outsider as a threat to the system imposed on 
the Russian people. We cannot afford to ignore 
this facet of Russian behavior, which is one of the 
driving forces of Soviet disarmament policy. 

The United States and its allies have consistently 
sought agreement on comprehensive and balanced 
disarmament under effective international control. 
Such control naturally requires sufficient inspec- 
tion on both sides in order to be reasonably certain 
that the terms of any agreement are in fact lived 
up to. In our proposals inspection involves entry 
into the territory of the parties to the agreement, 
although both the United States and the United 
Nations have made clear it must be carried out in 
such a way that no state would have cause to feel 
its security is endangered. It is on the question of 

' Ibid., Apr. 6. 1959, p. 467. 

* lUd. 

Department of State Bulletin 

inspection, however, that we have encountered 
almost insurmountable difficulties with the Soviet 

"We remain ready and willing to negotiate effec- 
tive disarmament agreements. We are prepared 
to permit Soviet representatives to participate in 
inspection arrangements in our territory. We do 
not fear their presence. In the circumstances 
envisaged, we would have nothing to hide. 

The Soviet Union, on the other hand, continues 
to fear the presence and the impact of Western 
representatives in its territory. Consequently, it 
resists — almost psychopatliically — effective inter- 
national inspection. 

Let me give you some illustrations. Shortly 
after World War II, when the United States had a 
nuclear monopoly, we submitted the so-called 
Baruch plan for the international control of atomic 
energy. This plan, which was one of the most 
generous proposals made in the history of sover- 
eign states, was designed to insure that man's new 
knowledge of the atom would be used for the good 
of mankind. It provided for certain inspection 
and control arrangements to this end. This would 
have opened the Soviet Union — and the United 
States — to foreign inspectors. The Soviet Union 
rejected the plan. 

Since last October we have sought to negotiate 
an agreement with the Soviet Union for the dis- 
continuance of nuclear weapons tests imder an 
effective control system. When free-world and 
Soviet experts agreed last summer ^ that it was 
possible to establish an effective control system to 
police an agreement to discontinue testing, we were 
hopeful that this indicated a significant change in 
Soviet attitudes. Now, after nearly 5 months of 
continuous negotiations with the Soviets, we find 
ourselves up against the same old stumbling 
block — the question of inspection and control. 

The Geneva nuclear test talks are now stalled on 
three key issues. Tliese are the question of the 
veto, the question of on-site inspection of suspected 
violations of the agreement, and the staffing of the 
control posts. On each of these issues the Soviet 
position reflects its traditional desire to deny or 
restrict access to Soviet territory to foreigners. 

Let us look first at the problem of the veto. 

The Soviet Union insists that there must be 
unanimity of the United States, the United King- 
dom, and the Soviet Union on all matters of sub- 

" Ihid., Sept. 22, 1958, p. 452. 
April 27, 1959 

503044—59 3 

stance under the agreement. This would include 
amendments to the treaty ; all matters relating to 
possible treaty violations; the findings of inspec- 
tion teams; the dispatch of inspection teams to 
investigate possible nuclear explosions ; changes in 
the control system; positioning of control posts; 
and all fiscal, administrative, logistic, and per- 
sonnel questions. 

Obviously the application of the veto power on 
this broad scale would render the control system 
meaningless and ineffective. The Soviet Union 
has advanced various technical arguments to sup- 
port its position, but it appears to me that its 
main interest is to be sure that the machinery of 
the control system will in no way impair the 
ability of the Soviet Union to isolate its people 
from external influences. 

This Soviet attitude is further borne out by 
the Russian proposals concerning on-site inspec- 
tions. Here, too, the Soviet Union maintains that 
any inspection of an explosion or an unidentified 
event should only be made on the basis of unani- 
mous decision. But it is perfectly clear to us 
that, unless inspection teams can be dispatched 
without hindrance, there can be no effective con- 
trol system. 

The Soviet Union objects to having teams of 
this nature cross its frontiers because, they allege, 
such teams could act as a cover for espionage. 
We have sought to meet this fear by expressing 
our willingness to have the host country prescribe 
the routes to be taken by on-site inspection teams 
and to assign liaison officers to insure that the 
teams do not exceed their proper functions. 

The control mechanism to police an agreement 
to discontinue nuclear weapons tests recommended 
by the Conference of Experts provided for es- 
tablishment of control posts in various parts of 
the world. We believe that the supervisory and 
technical personnel of such control posts should 
7iot be nationals of the countries in which the 
posts are located. We are quite willing to have 
such posts in this country supervised by Soviet 
nationals. By the same token, control posts in 
the Soviet Union should not be supervised by 
Soviet citizens, but by others. 

It is true that the Soviet Union has expressed 
willingness to accept a limited number of non- 
Soviet personnel in the control posts located in 
the Soviet Union. At the same time, it has re- 
fused to clarify the duties and privileges of such 
personnel. Apparently they would serve as mere 


observers. It appears that what the Soviets 
really want is self-inspection within their terri- 
tory, which, in turn, would insure continued 
Soviet isolation from outside influence. 

Can anyone believe that such a system, made up 
of Soviet inspectors, would provide us with the 
safeguards we need? Can anyone believe that 
Soviet nationals would be permitted to report 
Soviet violations of the agreement — and to report 
them promptly ? 

The Geneva nuclear talks will be resumed in 
the next few days. We sincerely hope that the 
Soviet Union may come to realize that the con- 
clusion of an agreement for the discontinuance 
of nuclear testing, with an effective control system, 
is much more in its interests than its traditional 
policy of shutting off its territory from foreigners. 
Certainly, if they really want nuclear tests dis- 
continued, we can make progress. 

Time is on our side. Technological progress 
and constantly increasing mass conununications 
facilities are making it more and more difficult 
for Soviet leaders to maintain the isolation of 
their people from the rest of the world. As the 
Soviet Union expands its own mdustrial and 
scientific facilities, contacts between the people of 
Soviet Eussia and the free world will continue 
to increase. All this brings closer the day when 
the Soviet policy of secrecy will be abandoned and 
one great obstacle to controlled disarmament will 
be removed. 

The Soviet Economic Offensive 

Let us turn briefly to another aspect of Soviet 
diplomacy. I have mentioned the tremendously 
increased economic power of the Soviet Union. 
Armed with the fonnidable weapon of a totally 
controlled economy, Soviet diplomacy has not 
overlooked the golden opportunities inherent in 
the new wave of nationalism and the revolution 
of rising expectations in the underdeveloped 

To the Soviets in foreign trade, as in every 
facet of foreign policy, the end justifies the 
means. Soviet foreign trade has always been an 
absolute state monopoly with Soviet leaders able 
to turn trade off and on or to shift its direction 
to suit their strategy. Nations that become de- 
pendent upon trade with the Soviet Union for 
their well-being may soon discover what a dev- 

astating weapon this is when it is placed in the 
hands of miscrupulous leaders. 

Since 1954 there has been what might be called 
a strategic departure from the Soviet trade pat- 
tern. Eying the important prize of the newly 
developing countries of Asia, Africa, and Latin 
America, the U.S.S.R. is making a determined 
diive to penetrate and eventually subvert them. 
Since that year the Soviet Union, its satellites, 
and Communist Cliina have extended $2.4 billion 
worth of credits to these countries. In 1958 
alone, these credits amounted to $1 billion. 

During 1957 Soviet bloc ti'ade with underde- 
veloped free-world countries was $1.7 billion. 
This was more than double such trade in 1954. 
And the upward trend is continuing. 

Nor is tliis all. There are now 4,000 weU-in- 
doctrinated and dedicated Soviet technicians 
operating in Asia, the Middle East, and Africa. 
Tliis represents an increase of 65 percent in a 
single year. 

In this connection we should not overlook the 
increased interest which Soviet leaders have shown 
in the economic, social, and humanitarian activi- 
ties of the United Nations. For years they had 
only bitter criticism to offer for the U.N. Tech- 
nical Assistance Program and the specialized 
agencies. More recently they have become active 
members of the International Labor Organiza- 
tion, the United Nations Educational, Scientific 
and Cultural Organization, the World Health Or- 
ganization, and the International Atomic Energy 
Agency. If you can't lick them, join them, now 
appears to be their motto. 

I might add that these economic weapons have 
been blended by Soviet total diplomacy with care- 
fully calculated military assistance, propaganda, 
and political moves. Tlieir short-range goal is to 
provoke and exploit friction between these nations 
and those of the West. Their long-range goal is 
to prepare for eventual Communist subversion and 

We must not forget, however, that the United 
States pioneered the concept of helping the un- 
derdeveloped countries advance their social and 
economic well-being. Our efforts in this respect 
are not always publicized with the fanfare and 
headlines that Soviet assistance programs obtain. 
But our programs are designed to achieve results 
wliicli are solid and lasting. Soviet foreign aid 
has as its purpose the furthering of the U.S.S.R.'s 


Department of Stale Bulletin 

goal of world domination. Our assistance from 
the very beginning has had but one purpose — to 
strengthen freedom. 

I do not think it becomes a great nation like 
ours to boast about the assistance we have given. 
It is a fact, however, that the Marshall plan con- 
stitutes only a fraction of our postwar foreign 
aid. If we were to add the mutual security pro- 
gram and the contributions we have made through 
the Export-Import Bank, the World Bank, the 
International Monetary Fund, and various other 
types of assistance including United Nations pro- 
grams, our total foreign aid would run to some- 
thing like 72 billions of dollars since 1945. This 
figure serves as clear proof of our deep interest in 
helping to build a stable and a peaceful world. 

JMany people ask whether the United States 
can afford the mutual security program. My an- 
swer to them would be clear and unequivocal : Of 
course our economy can safely bear the cost of 
this program. The total mutual security appro- 
priation for 1959, wliich amoimts to $3.3 billion, 
is only 0.75 percent of the estimated United States 
gross national product. 

Excluding military assistance, funds for our 
mutual security program for all economic pur- 
poses run to about two-thirds of 1 percent of 
our gross national product — which is less than we 
spend each year for cosmetics. Our mutual se- 
curity program provides us with tlie greatest 
amount of seciirity at the lowest possible dollar 
cost. It assists less developed free comitries to 
build sufficient economic strength to maintain 
their freedom and sustain peace. I say that it is 
so vital to the conduct of American foreign joolicy 
that we cannot afford not to have it. 

Neither we nor our allies have the complete 
identity between government and economy tliat 
the Soviet Union has — nor, I am sure, would we 
wish to. But there is a long history in the West 
of an effective working partnership between gov- 
ernment and private entei^prise in times when tlie 
existence of our free society has been seriously 
threatened. We are now living in such a time. 
We will continue to for the foreseeable future. I 
suggest that the hour has come when we should 
find new, imaginative, and effective ways to 
implement a vigorous and voluntary working 
relationship between free enterprise and free 

Soviet Propaganda Techniques 

In the arsenal of Soviet total diplomacy no 
weapons are more important than those of psycho- 
logical warfare and propaganda. In addition to 
its own gigantic propaganda machine at home, the 
U.S.S.R. exploits the many opportunities to ad- 
vance its objectives which are presented by the 
worldwide network of mass communications 
media, both free and controlled. 

For example, every time Mr. Khrushchev makes 
a speech, the text is normally faithfully and fully 
reported throughout the free world in its press 
and by other mass information media. Similarly 
every Soviet diplomatic note of any importance 
is printed. Even the cocktail talk of Mr. Khru- 
shchev is reported as news in the free world, thus 
presenting the Soviet Union with a tailormade 
trial-balloon device. His statements can readily 
be denied — and have been — when it suits the So- 
viet purpose. If the balloon floats, informal con- 
versation may be elevated to the dignity of a pro- 
nouncement of state policy. 

In sharp contrast, the addresses of Western 
leaders, and their press conferences, diplomatic 
correspondence, and formal statements of policy, 
are almost never published in full in the Soviet 
press and often are not even summarized. On 
tliose rare occasions when they are published, it is 
invariably after considerable delay. Even more, 
the texts which are quoted are frequently emascu- 
lated, interlarded witli editorial comment, and 
very often accompanied by lengthy rebuttal. 
President Eisenhower's recent address to the Na- 
tion on the Berlin crisis was reported in the Soviet 
Union in the usual selective terms. For example, 
his assertion that ". . . the American and West- 
ern peoples do not want war" was not reported 
by any major Soviet media. 

These are but a few striking examples of how 
Soviet diplomacy utilizes and exploits media of 
public information as a weapon. In spite of their 
talk about "the ruling circles," the Soviet leaders 
are well aware that real power in the free world 
ultimately rests with the general public rather 
than any governing group. They know full well 
that every utterance or action of an American 
diplomat receives closest public scrutiny and criti- 
cism. Soviet leaders, therefore, seize every op- 
portunity to appeal to the people of the free 
world over the heads of their governments. Such 
appeals, which are often accompanied by dis- 

April 27, J 959 


tortion and plain untruth, are a standard tech- 
nique of Soviet diplomacy. 

In combating this worldwide Soviet propa- 
ganda campaign, our information program based 
on truth has become a potent weapon. Its em- 
phasis on fact and moderate tone have given it a 
growing reputation for reliability that has re- 
sulted in a vast and constantly increasing audience 
among the peoples in the Communist empire. The 
best testimony to the effectiveness of the United 
States Information Agency is the fact that the 
Soviets spend more money on jamming its broad- 
casts than USIA spends on its entire operation. 

I might also add that each issue of the Agency's 
macazine America Illustrated is a sellout the mo- 
ment it arrives on the Soviet newsstands. Obvi- 
ously there is a growing number of Soviet citizens 
who want to know the truth. Indeed, their num- 
ber may be much greater than we think. 

Concluding Comments 

In view of the frustrations we have encountered, 
some Americans seem to oppose any serious at- 
tempt to negotiate with the Russians. Given the 
unreasonable attitude of the Soviet Union, the 
argument runs, given their rigid approach toward 
world problems, how can we ever expect to arrive 
at any serious agreement with them ? 

Admittedly there is much to be said for this 
argument. The fact is the Soviets are inflexible. 
They are rigid. They are unbending. They are 
difficult, uncompromising, stubborn, intractable, 
and obdurate. 

But the facts also show that it is not impossible 
to find important areas of agreement with the 
Soviet Union. Three examples will suffice to make 
my point. In 1955, after 10 long years of frus- 
trating negotiations, they finally agreed to the 
Austrian state treaty. In 1957, after considerable 
opposition, they signed the statute of the Inter- 
national Atomic Energy Agency. Finally, in 
1958, after extremely difficult negotiations, they 
agreed to the terms of the Lacy-Zaroubin exchange 

Now these examples demonstrate that perhaps 
it is not impossible to get blood out of a turnip. 
They demonstrate that, if we search hard enough 
and persistently enough, it is not impossible to 
find certain areas of agreement with the Soviet 

• For text, see ilid., Feb. 17, 1958, p. 243. 

No one can doubt that the task ahead of us will 
be a long and tedious one. It will call for many 
years of determined effort and sustained sacrifice 
on the part of the free peoples everywhere. 

In our negotiations with the Russians we should 
always remember that they are not an impatient 
people. They are never in a hurry to get away 
from an international conference. They believe 
that history is on their side. And they are con- 
tent to bide their time, constantly testing and 
probing for soft spots. 

On our part we must do what we can, therefore, 
to develop an infinite amount of patience. More- 
over, if we are to throw back the Communist chal- 
lenge, we must display at least as much firmness, 
persistence, and determination as the Russians. 

If we will pursue this course, Soviet leaders, 
encouraged by world opinion, may come to realize 
that it is in their own national interest to relax 
tensions and to come to further agreement with 
free- world nations. 

Above all we must never give up our eternal 
quest for a just peace. We must never give way 
to despair. We must never allow ourselves to be- 
come fatalistic about the prospects of war. 
Thucydides reminds us that fatalism tends to pro- 
duce what it dreads, for men do not oppose that 
which they consider inevitable. 

In these circumstances free-world strategy 
should be clear. If the free nations will hold fast 
to those policies which deter armed attack ; if they 
will continue to support the purposes and prin- 
ciples of the United Nations Charter ; if they can, 
through constructive economic programs, prevent 
Communist subvei-sion in the tmderdeveloped 
areas; and if they will demonstrate, by word and 
deed, the enduring values of freedom, then we can 
be sure the cause of free men will prevail. 

World Health Day 

Statement by President Eisenhoioer 

White House press release dated April 7 

On this day, the 11th anniversary of the adop- 
tion of the constitution of the World Health Or- 
ganization, it is a privilege to join with my fellow 
citizens and with citizens of other nations in ob- 
serving World Health Day. 

The theme of this year's observance, "Mental 

Department of State Bulletin 

Illness and Mental Health in the World Today," 
calls attention to the necessity of learning more 
about the nature of mental illness and applying 
more fully the knowledge we now have of ways 
to maintain sound mental health. This is one of 
the great areas of human need which requires our 
active concern working in concert with our neigh- 
bors in the United Nations. 

U.S. Note on Japan and Baltic Sea 
Plane Incidents Sent to Soviets 

Folloioing is an exchange of notes between the 
United States and the U.S.S.R. concerning Soviet 
attacks on U.S. aircraft on Novemher 7 and S, 


Reference is made to the Ministry's note No. 
18/OSA of March 5, 1959, concerning incidents 
which occurred on November 7 and 8, 1958, which 
involved attacks by Soviet fighter aircraft on an 
American aircraft over the Baltic Sea and simu- 
lated attacks by Soviet fighter aircraft on an 
American aircraft over the Sea of Japan. 

In its note the Soviet Government suggested 
that such flights by these American aircraft are a 
continuous source of strained relations between 
the United States and the U.S.S.R. 

It is recognized as an imsatisfactory state of 
affairs indeed when in place of easy passage to 
and fro by land, sea and air, as is normal else- 
where, there is an atmosphere of hostility arising 
from the isolation of a segment of the earth's 
surface. But certainly it is this atmosphere and 
the sensitivities engendered by it, and not the flight 
of American military aircraft in areas near 
frontiers of the Soviet Union, which impose cer- 
tain strains in relations mentioned in the Soviet 

The United States Government has no desire 
to add to such tensions. Actually it deplores the 
fact that the Soviet Government, in its note of 
March 5, 1959, has considered it expedient to con- 
tend that during the incident in the Baltic Sea 

area on November 7, 1958, there was an attack by 
an American military plane on a Soviet fighter. 
The facts in the incidents of November 7 and 8, 
1958, were clearly set forth in the United States 
note No. 462 of November 13, 1958.= Specifically, 
a United States Air Force aircraft was twice fired 
upon by Soviet fighter aircraft on November 7 at 
a position over the Baltic Sea approximately 66 
miles from the nearest Soviet territory. These 
attacks were launched from behind and without 
warning; the American aircraft did not fire. 
Later that day and early on the following day, 
Soviet fighter craft made simulated attacks, with- 
out firing, on an American Air Force aircraft over 
the Sea of Japan at points more than 60 miles 
from the nearest Soviet territory. 

The Soviet Government is attempting to divert 
attention from these facts by making reference to 
"violations" of Soviet airspace. The Soviet Gov- 
ernment is fully aware that no violations of Soviet 
airspace were involved in these incidents in any 

In its note, the Soviet Government has ex- 
pressed an expectation that the United States deny 
itself use of international airspace or airspace of 
other countries in a manner mutually agreeable 
to the United States and those countries. This is 
clearly unjustifiable and does not contribute to- 
ward easing the strained relations between the 
United States and the U.S.S.R. referred to in the 


Unofficial translation 
No. 18/OSA 

In connection with the note of the Government of the 
United States of America of January 2, 1959 which is 
in answer to the note of the Soviet Government of De- 
cember 15, 1958,'' the Government of the U.S.S.R. fully 
confirms its note of December 15, 1958, concerning the 
flights of American military planes with hostile aims 
close to Soviet frontiers on the 7th and 8th of November, 
1958, in which a decisive protest is made to the Gov- 
ernment of the United States of America against the 
wholly unprovoked firing attack by an American military 
plane on a Soviet fighter close by the territory of the 

The Soviet Government expects that the Government of 

' Delivered to the Soviet Ministry of Foreign Affairs by 
the American Embassy at Moscow on Mar. 25 (press 
release 249 dated Apr. 6). 

" For text, see Buixetin of Dec. 8, 1958, p. 909. 
' For texts of U.S. and Soviet notes, see ibid., Jan. 26, 
1959, p. 134. 

April 27, 1959 


the United States of America will take the necessary 
measures and will forbid its air forces to send planes 
to the state boundaries of the U.S.S.R. and to violate 
these boundaries, thus eliminating one of the continuous 
sources of strained relations between the Soviet Union 
and the United States. For this it is necessary for the 
Government of the United States to do only one thing — 
to give the necessary order to its air forces and this de- 
pends only upon the Government of the United States of 
America. Until the time when the Government of the 
United States of America will do this, no statements will 
be able to free it from that heavy responsibility which it 
will bear for the consequences of dangerous flights of 
American planes close by the borders of the Soviet Union 
and for the violation by them of the airspace of the 

Development Loans 

Jordan, Nigeria, Pakistan, and Uruguay 

The United States on April 10 announced the 
authorization of four loans totaling $14.1 million 
by the Development Loan Fund to finance devel- 
opment projects in Jordan, Nigeria, Pakistan, and 
Uruguay. For details, see Department of State 
press release 256 dated April 10. 


Signing of a loan agreement at Washington, 
D.C., by which the Development Loan Fund will 
lend $3.5 million to the Govermnent of Korea to 
help further restoration of war-damaged tele- 
communications facilities in Korea was announced 
on April 10 by the Department of State. For 
details, see press release 255 dated April 10. 


The United States and the Government of 
Thailand signed an agreement on April 10 at 
Washington, D.C., by which the Development 
Loan Fund will lend Thailand $1,750,000 to be 
used by the Port Authority of that country for the 
purchase of a 2,000 cubic meter hopper dredge to 
help maintain the channel of the Chao Phraya 

Eiver at the port of Bangkok. For details, see 
Department of State press release 258 dated 
April 10. 

U.S. EVlakes Loan to Iceland 
for Mydroeiectric Project release 257 dated April 10 

The United States on April 10 signed an agree- 
ment witli the Government of Iceland lending the 
equivalent of $1,760,000 in U.S.-owned Icelandic 
currency to the Iceland Bank of Development to 
assist Iceland's economic development. 

The proceeds will be applied largely to finance 
continued construction on the Upper Sog hydro- 
electric project, which was started in early 1957. 
This project is expected to be completed within a 
year, at which time it will augment the electricity 
supply of the southwest part of Iceland, where 
the capital city of Reykjavik is located. Some of 
the proceeds will be applied to extend the trans- 
mission lines to the Keflavik area. 

The loan is being made by the International 
Cooperation Administration from Icelandic cur- 
rency which the United States received from the 
sale of surplus agricultural commodities to Ice- 
land under provisions of P.L. 480, the Agricul- 
tural Trade Development and Assistance Act. 
The loan is part of ICA's jDrogi-am of economic 
assistance to Iceland under the U.S. mutual secu- 
rity program. 

Ambassador Thor Thors, representing the Ice- 
land Government and the Iceland Bank of De- 
velopment, signed the agreement for liis comitry. 
Samuel C. Waugh, president of tlie Export- 
Import Bank of Washington, signed for the 
United States. The Export-Import Bank will 
administer the loan for ICA. The loan will be 
repayable over a period of 20 years either in dol- 
lars or Icelandic currency at an interest rate of 
31/2 percent. 


Department of State Bulletin 


Senate Approval Sought for Treaty 
With Sultanate of fVSuscat and Oman 

Statement hy W. T. M. Beale 

Deputy Assistant Secretary for Economic Affairs ^ 

I am appearing before the conunittee in sup- 
port of the treaty of amity, economic relations, 
and consular rights with the Sultanate of Muscat 
and Oman.^ This treaty is similar to others with 
countries in the Middle East which the United 
States has entered into during the past several 
years: specifically, the treaties with Ethiopia,^ 
approved by the Senate on July 21, 1953, and with 
Iran,* approved by the Senate on July 11, 1956. 

Like these latter the treaty with Muscat and 
Oman is an abridged version of the traditional 
treaty of friendship, commerce, and navigation. 
As such, it is in a form believed to be better suited 
to conditions of economic intercourse between the 
United States and the Sultanate than a commer- 
cial treaty of the lengthier and more detailed kind. 

In both form and substance, however, it ad- 
heres to the general pattern of the standard treaty 
of friendship, coimnerce, and navigation. Its 
broad objectives are the same: to further the in- 
vestments, trade, and shipping of the United 
States and to provide for the protection abroad 
of American citizens, their property and other 
interests, on a reciprocal basis. The provisions 
through which the treaty seeks to attain these ob- 
jectives with respect to the Sultanate are based 
upon existing precedents and contam no imiova- 
tions raising problems of domestic law. 

The most important substantive features of the 
treaty are pointed out in the report of the Acting 
Secretary of State [Christian A. Herter] which 
accompanies the treaty. To supplement and am- 

' Made before the Senate Foreign Relations Committee 
on Apr. 7 ( press release 251 ) . 

' For text of the treaty, together with the President's 
letter of transmittal and a report by Acting Secretary 
Herter, see S. Ex. A, 86th Cong., 1st sess. 

' 4 UST 2134. 


plify that material, the Department has prepared 
a paragraph-by-paragraph tabular comparison, 
which indicates the very considerable degree of 
correspondence between the provisions of this 
treaty and of the treaty with Iran. I now offer 
this table to the committee.'' 

While it seems unnecessary to repeat here the 
data contained in these two papers, I might ob- 
serve that the treaty with the Sultanate reflects a 
somewhat greater degree of abridgment of the 
standard type of treatj^ than its Iranian counter- 
part. This reflects nothing more, however, than 
a diii'ering assessment of the present and probable 
future situation of American interests in the two 

United States business and other interests in 
Muscat and Oman are not extensive. The prin- 
cipal economic activity in which Americans are 
engaged is the development of petroleum re- 
sources. The treaty contains provisions which it 
is believed will cover adequately and effectively 
the basic needs of concerns carrying on extractive 
and other industrial activities, as well as mer- 
chants and traders generally, and will enable them 
to conduct their operations with assurance of fair 
treatment, in accordance with agreed rules. Spe- 
cial reference might be made in this regard to 
article IV, paragraph 2, which contains the fun- 
damental rule that property may not be taken 
without the payment of just compensation, and 
article V, paragraph 2, which provides that busi- 
ness enterprises may not be discriminated against 
in the conduct of their operations within the coun- 
trj'. The latter is in fact if not in specilic terms a 
guarantee of national and of most- favored-nation 

In addition the new treaty will furnish an 
agreed basis for the eventual reopening of an 
American consulate in Muscat and for its staffing 
and maintenance on terms customary in United 
States and in international practice generally. 

The Department of State is gratified that the 
committee has been able to schedule consideration 

" Not printed here. 

April 27, 1959 


of this ti-eaty during the present session. The 
Sultan of Muscat and Oman, as an absolute ruler, 
will be in a position to exchange ratifications as 
soon as our constitutional procedures are com- 
pleted. When it comes into effect this treaty will 
replace one of the oldest treaties of the kind in 
force with a foreign country, that concluded with 
the Sultanate in 1833. 

The new treaty, which is the I7th of its general 
type to be signed by the United States during the 
postwar period, establishes a conventional basis 
for general relations between the United States 
and the Sultanate on terms that take due account 
of American interests in that country and of its 
current stage of economic development. As such 
it promises a fruitful further development of 
tliose relations and, as in the case of every such 
treaty, a significant contribution to strengthening 
the rule of law in dealings between nations. 

Department Opposes Quotas 
on Fluorspar 

Statement hy Thomas C. Mann 

Assistant Secretary for EconomAc Affairs ^ 

The Department of State is strongly opposed to 
the enactment of S. 1285, a bill "To provide for 
the preservation and development of the domestic 
fluorspar industry." This bill would institute 
quotas for domestic production and imports. 
The basic formula would provide an annual quota 
for the domestic industiy of 200,000 tons for fluor- 
spar containing more than 97 percent calcium flu- 
oride and 125,000 tons for lower grade fluoi'spar ; 
the import quotas would be equivalent to the 
difference between the domestic quotas and esti- 
mates of annual domestic consumption. The 
effect of the bill would be to restrict imports in 
the interest of national security. 

The Congi-ess established a standard procedure, 
under section 8 of the Trade Agreements Exten- 
sion Act of 1958, for the investigation of the 
effects on the national security of imports and for 
the imposition of import restrictions if it is de- 
termined that they are necessary to prevent a 
threat of impairment to the national security. 

1 Made before the Minerals, Metals, and Fuels Subcom- 
mittee of tile Senate Committee on Interior and Insular 
Affairs on Apr. 10 (press release 254). 

At the present time the Office of Civil and De- 
fense Mobilization is conducting such an investi- 
gation regarding imports of fluorspar under this 
procedure. We consider that this is the best 
method presently available for a thorough, ob- 
jective evaluation of the complicated issues in- 
volved in this type of problem. 

Wliile we fully appreciate the concern of those 
who feel that imports of fluorspar may seriously 
impair the domestic industry, there is also a pro- 
cedure established by law which provides safe- 
guards to domestic industries against injury from 
increased imports resulting in whole or in part 
from trade agreement concessions. Under the 
escape-clause provisions of the trade agreements 
legislation, the domestic industry producing flu- 
orspar containing more than 97 percent calcium 
fluoride may apply to the Tariff Commission to 
institute an investigation. If the Commission de- 
termines, on the basis of such an investigation, 
that increased imports are causing or threatening 
serious injury to a domestic industry, it recom- 
mends to the President increased duties or other 
import restrictions. He has the authority to de- 
cide what action should be taken in the national 

The restriction of imports that would result 
from the enactment of the proposed bill, in the 
absence of clear evidence that it is necessary in 
the interest of national security or to prevent seri- 
ous injury to the domestic industry, would be 
directly contrary to the administration's policy 
of expanding the international trade of the United 
States so as to increase our economic strength 
and that of our allies. The extent of the poten- 
tial trade restriction is illustrated by the fact that 
if the legislation had been in effect during 1956/57 
our average annual imports of fluorspar for com- 
mercial uses would have been approximately 
308,000 tons as against the actual figure of 441,000 
tons. This would have adversely affected exports 
from Mexico, Italy, West Germany, and other 
countries and substantially reduced their ability 
to buy from the United States. 

There are a number of otlier points about the 
proposed legislation which concern us. We are 
informed by the Department of the Interior that 
it would be necessary to allocate the domestic 
production quotas to the various producers so as 
to provide equitable treatment of the companies 
concerned. Thus the production of individual 
companies would be controlled by Govermnent 


Department of Stale Bulletin 

fiat rather than the free play of market influence. 
This artificial restriction of competition between 
domestic companies, as well as the curtailment of 
imports resulting from the legislation, would tend 
to increase prices. Consequently the competitive 
position of American industries which use 
fluorspar products as important raw materials 
would be impaired. The price increases would 
also have a general inflationary influence. In 
summary, the basic features of the bill appear to 
be directly contrary to the principles of our free 
enterprise system, upon the strength and vitality 
of which we are relying to meet the Soviet eco- 
nomic challenge. 

It might be mentioned also that the provisions 
of the bill relating to the barter of surplus agri- 
cultural products imder Public Law 480 in ex- 
change for fluorspar from abroad would serve no 
useful pui-pose. Statutoi-y authority already 
exists for the acquisition of fluorspar under the 
barter program, and significant quantities of 
fluorspar have actually been so acquired. Fur- 
thermore, although such acquisitions could be in- 
creased under existing legislation, it is the judg- 
ment of the Department of State that an enlarge- 
ment of the barter program would have the effect 
of displacing ordinary commercial exports of 
farm products by the United States and by certain 
foreign countries whose economic strength is im- 
portant to the United States. Finally any acqui- 
sition of additional supplies of fluorspar by the 
Government imder the barter program would 
tend to aggravate the future problem of dispos- 
ing of the Government's surplus holdings with- 
out causing injury to domestic and foreign 

Congressional Documents 
Relating to Foreign Policy 

86th Congress, 1st Session 

United States Foreign Policy. Hearings before the Sen- 
ate Foreign Relations Committee. Statements of Sec- 
retary of State John Foster Dulles and Under Secretary 
of State for Economic Affairs Douglas Dillon. Jan- 
uary 14-21, 1959. 59 pp. 

Foreign Service Appointments. Hearings before the Sen- 
ate Foreign Relations Committee. January 27, 1959. 
43 pp. 

Disarmament and Foreign Policy. Hearings before a sub- 
committee of the Senate Foreign Relations Committee 
pursuant to S. Res. 31. Part 1. January 28-Febru- 
ary 2, 1959. 198 pp. 

National Science Foundation-National Academy of Sci- 
ences. Hearings before the subcommittee of the House 
Committee on Appropriations. Report on the Interna- 
tional Geophysical Year. February 1959. 198 pp. 

The American Overseas. Hearing before the Senate Com- 
mittee on Foreign Relations. Statements of several 
educators. February 18, 1959. 48 pp. 

Treaty of Amity, Economic Relations, and Consular 
Rights With the Sultan of Muscat and Oman and De- 
pendencies. S. Ex. A. February 26, 1959. 11 pp. 

Bretton VS'oods Agreements Act. Hearings before Sub- 
committee No. 1 of the House Committee on Banking 
and Currency. March 3-6, 1959. 92 pp. 

Convention With Cuba for the Conservation of Shrimp. 
S. Ex. B. March 5, 1959. 7 pp. 

Amend Bretton Woods Agreements Act. Hearings before 
the Senate Foreign Relations Committee on S. 1094. 
March 9-17, 1959. 129 pp. 

Mutual Security Program. Message from the President 
of the United States relative to the mutual security 
program. H. Doc. 97. March 13, 1959. 13 pp. 

Authorizing Free Communication Services to Official 
Participants in the Ninth Plenary Assembly of the In- 
ternational Radio Consultative Committee. Report to 
accompany H.J. Res. 257. March 13, 1959. 4 pp. 

An Investigation of Refugees and Escapees. Report of 
the Committee on the Judiciary, United States Senate, 
made by its Subcommittee To Investigate Problems 
Connected With Refugees and Escapees pursuant to S. 
Res. 239, 85th Congress, 2d session, as extended. S. 
Rept. 101. March 16, 1959. 4 pp. 

Trade Fair Act of 1959. Report to accompany H.R. 5508. 
H. Rept. 213. March 16, 1959. 3 pp. 

Authorizing United States Participation in Parliamentary 
Conferences With Canada. Report to accompany H.J. 
Res. 2.54. H. Rept. 215. March 17, 1959. 3 pp. 

Amendments to the Bretton Woods Agreements Act of 
1945, as Amended. Report of the Committee on For- 
eign Relations on S. 1094 to amend the Bretton Woods 
Agreements Act. S. Rept. 109. March 18, 1959. 15 pp. 

Authorizing Construction for the Military Departments 
and Reserve Components. Report to accompany H.R. 
5674. H. Rept. 223. March 18, 19.59. 74 pp. 

Bretton Woods Agreements Act. Report of the Com- 
mittee on Banking and Currency, House of Representa- 
tives, 85th Congress, 1st session, on H.R. 4452. H. Rept. 
225. March 18, 1959. 17 pp. 

Authorizing Appropriations to the National Aeronautics 
and Space Administration. Report to accompany S. 
1096. H. Rept. 226. March 18, 1959. 9 pp. 

Results From Recommendations Made During 85th Con- 
gress in Reports of Committee on Government Opera- 
tions, House of Representatives. H. Rept. 228. March 

18, 1959. 174 pp. 

Administrative Authorities for National Security Agency. 
Report to accompany H.R. 4599. H. Rept. 231. JIarch 

19, 1959. 10 pp. 

Amendments to the Budget for Fiscal Year 1960 for the 
Legislative Branch and the U.S. Information Agency. 
Communication from the President. H. Doc. 100. 
March 19, 1959. 2 pp. 

Protocol of Amendment to the Convention on the Inter- 
American Institute of Agricultural Sciences. S. Ex. C. 
March 19, 1959. 9 pp. 

Study of United States Foreign Policy. First interim 
report of the Senate Committee on Foreign Relations 
pursuant to S. Res. 31. S. Rept. 118. March 19, 1959. 
26 pp. 

Invitation To Hold the 1964 Olympic Games in the United 
States. Report to accompany S.J. Res. 73. March 19, 
1959. S. Rept. 119. 3 pp. 

Extending an Invitation to the International Olympic 
Committee To Hold 1964 Olympic Games in the United 
States. Report to accompany H.J. Res. 300. H. Rept. 
236. March 20, 1959. 3 pp. 

April 27, J 959 



Fifth Meeting of tiie Council of tlie Soutlieast Asia Treaty Organization 

Following is an address made hy Douglas Dil- 
lon, Under Secretary of State for Economic Af- 
fairs, at the opening session of the fifth annual 
meeting of the Council of Ministers of the South- 
east Asia Treaty Organization, which met at Wel- 
lington, New Zeala7id; from April 8 to 10, together 
W'ith the text of a communique issued at the close 
of the meeting. 


Mr. Chairman [Walter Nash, Prime Minister 
of New Zealand], I should like to express the ap- 
preciation of the U.S. delegation for the kind 
words of welcome from His Excellency, the Gov- 
ernor General [The Viscount Cobham, Governor 
General of New Zealand], and from you yoiu'self, 
sir. And may I add my congi'atulations upon 
your election as chairman of this fifth Council 
meeting. We are indeed fortunate that a states- 
man of your wisdom and experience is to preside 
over our deliberations here in the capital of this 
beautiful and hospitable land. 

The honor I feel at representing the United 
States at this fifth Council meeting is tempered 
only by regret that circumstances have compelled 
Secretary Dulles to break his perfect record of 
attendance at SEATO Council meetings. Mr. 
Dulles has requested me to express his deep dis- 
appointment over his inability to be here and to 
convey liis personal greetings to the delegates, 
Avith many of whom he has been privileged to as- 
sociate at past Council sessions. 

Before I left for Wellington President Eisen- 
hower also asked me to extend his best wishes for 
the success of this meeting. The traditional 
friendly interest of the United States in the lands 
washed by the Pacific is well known to all of you. 
This year, happily, it becomes even more intimate 
for now Hawaii is about to join our Union as the 

50th State, following on the heels of Alaska's ad- 
mission last year. This evidences the continuing 
interest of my countrymen in the great Pacific 
Basin and in the region we here refer to as the 
SEATO area. 

The United States takes deep satisfaction in the 
achievements of SEATO. SEATO has fully lived 
up to its vital role as an integral part of the free 
world's collective defense system. Only in the 
upside-down language of international com- 
munism is SEATO anything but a purely de- 
fensive alliance established in accordance with the 
United Nations Charter. 

We are gathered here because our countries have 
chosen not to surrender to a materialistic and bold 
imperialism wlaich seeks to regiment the bodies 
and minds of all mankind. 

Benefits Deriving From SEATO 

The members of SEATO are, I believe, bene- 
fiting in many ways from the free association of 
this organization. Foremost is the priceless se- 
curity that derives from our imion. We are better 
prepared to counter Communist subversion and 
aggression because of our association in military 
planning and combined militaiy exercises. 

The increasingly effective political consultation 
by the Council representatives is proving to be a 
source of growing strength and unity. Our mu- 
tual efforts in the cultural, economic, and informa- 
tional fields are promoting greater uitderstanding 
among our peoples. This increasing understand- 
ing and our common dedication to the growth of 
freedom and social progress insure the triumph of 
the cause of liberty throughout the treaty area. 

The true measure of SEATO's worth is the 
simple fact that since we joined to create its pro- 
tective shield there has been no Communist ag- 
gression against the treaty area. The nations of 
Southeast Asia have thus been freed to devote 


Department of State Bulletin 

theii- primary efforts to the development of their 
national well-being. 

When we re-call the difficult and mipromising 
situation in Southeast Asia at the time of 
SEATO's birth, the significance of this accom- 
plishment becomes apparent. 

In Iran their tactics have taken the form of 
harsh Soviet threats against the Goveniment. 
Their assault on the freedom of the 2 million in- 
habitants of West Berlin has been a combination 
of military threats and diplomatic moves. 

As we meet today we are supremely aware that, 
on the high mountains and plateaus of Tibet, brave 
men are fighting for their freedom against a form 
of tyranny more totally repressive than any in 
histoi-y. The conscience of no free nation on earth 
can tolerate this latest Communist outrage.^ 

With the escape of the Dalai Lama the lie has 
been given to the Peiping claim that he was kid- 
naped by the Khamba tribesmen or that the 
Tibetans in any way consented to Chinese Com- 
munist actions. We rejoice that he is safe and 
can remain not only as a living symbol of those 
values cherished by the brave Tibetan people and 
many others but also as a reminder of the true 
meaning of Communist coexistence. As in the 
case of the Hungarian uprising the facts cannot 
be hidden from the world, and the world will not 

Last summer, as you know, the United States 
responded to the Commmiist challenge in the 
Taiwan Strait with firmness. During this crisis 
the Chinese Communists made it starkly clear 
they would accept no settlement that did not en- 
tail the destruction of the Kepublic of China, tlie 
seizure of Taiwan, and United States withdrawal 
from the entire area. 

The Soviets publicly associated themselves with 
this position in Khrushchev's letter to President 
Eisenhower,^ in Mikoyan's ^ much-publicized tele- 
vision interview, and elsewhere. The United 
States will, of course, not capitulate to such 

Our friends may rest assured that we remain 
as firmly convinced as ever that our security is 
intimately bound up with the maintenance of their 

^For a statement by Acting Secretary Herter on the 
situation in Tibet, see Bulletin of Apr. 13, 1959, p. 514. 

' For the exchange of correspondence, see Hid., Sept. 29, 
1958, p. 498. 

'Anastas Mikoyan, Soviet First Deputy Premier, was 
in the United States on an unoflacial visit Jan. 4-20. 

rights and freedom whether they be in Europe, in 
Asia, or elsewhere, and that our policies and ac- 
tions will always conform to this basic principle. 
But we all recognize that firmness in the face 
of Communist aggression is not enough. We our- 
selves must move forward in the economic and 
social fields. One of the imperatives of our times 
is the call for cooperative effort among free- 
world coimtries to improve living conditions in 
the less developed areas of the world. 

U.S. Efforts To Aid Less Developed Areas 

The United States has over a period of years 
devoted very substantial efforts and resources to 
this end. We have, for example, been able to 
contribute some $4,000 million in various kinds of 
economic aid to Colombo Plan countries since the 
Plan's inception. I am confident that the United 
States and other free- world countries would de- 
vote even greater resources to this pressing task 
were it not necessary for us to devote so large a 
share of our resources to building needed de- 
fenses against Communist aggression. 

This past j'ear has witnessed numerous initi- 
atives by the United States in the economic field. 
Last August President Eisenhower recommended 
substantial increases in the resources of the World 
Bank and the International Monetary Fund in 
order to permit these institutions to carry on and 
expand their outstanding work in the fields of de- 
velopment and monetary stability. The gover- 
nors of the two institutions have recommended a 
specific program for such increases. Legislation 
providing for the U.S. share in these increases — 
over $4,500 million — has already been passed by 
both Houses of the U.S. Congress and is expected 
to become law in the near future.* 

Another U.S. initiative that is bearing fruit 
this year is the Special Fund of the United 
Nations designed to undertake major surveys 
of development problems in the less developed 
areas. The U.N. has called a leading American 
exponent of development, Mr. Paul Hoffman, to 
direct the work of this new agency.' 

The United States has long recognized the prob- 
lems created for less developed countries by 

* For background, see Bulletin of Mar. 30, 1959, p. 445. 

' For a statement by Ambassador Lodge presenting to 
Mr. Hoffman the United States' initial contribution to the 
Fund, see iMd., Feb. 23, 1959, p. 284. 

April 27, J 959 


fluctuations in the price of primary commodities. 
In keeping with this concern the United States 
last year joined the U.N. Commission on Interna- 
tional Commodity Trade. We are hopeful that 
this Commission will serve a useful purpose in pro- 
moting greater understanding of the problems 
facing various primary producers and so show the 
way toward solutions. Finally, last year, as a 
mark of our continuing interest in technical co- 
operation throughout free Asia, the United States 
decided to become a full member of the Technical 
Cooperation Council of the Colombo Plan. 

These actions, together with our continuing 
bilateral programs, are indicative of our un- 
flagging determination to work for the social and 
economic progress of the less developed areas. 

Mr. Chairman, fellow delegates, the U.S. delega- 
tion welcomes the opportunity during the next 3 
days to participate with you in deliberations 
which, I am certain, will aid us all in charting our 
course in the troubled but increasingly inter- 
dependent world in which we live. 


Press release 259 dated April 10 

The fifth meeting of the SEATO Council was held in 
Wellington from April 8 to 10, 1959, under the chairman- 
ship of the New Zealand Prime Minister and Minister of 
External Affairs, the Right Honorable Walter Nash. 

The Council is conscious that the security of any one 
region is linked with that of other areas of the world, 
and that therefore it cannot effectively discharge its re- 
sponsibilities without taking account of major develop- 
ments elsewhere. It accordingly attaches special impor- 
tance to its annual exchange of views on the general 
international situation. This year's discussion was con- 
sidered by Council members to have been extremely 
valuable. Its freedom and frankness reflect the atmos- 
phere of full confidence and mutual understanding which 
exists among its members. The Council discussed reports 
and recommendations by the Council representatives, the 
Military Advisers and the Secretary General, and in the 
light of them gave directions with regard to the activities 
of the organization in the coming year. The Council 
commended the effective work of the Secretary General, 
Nai Pote Sarasin, and his staff. The members of SEATO 
reaffirm their undertaking in article I of the Manila 
Treaty to seek the settlement of international disputes 
by peaceful means and to refrain in their international 
relations from the threat or use of force in any manner 
inconsistent with the purposes of the United Nations. 

The members of SEATO reemphasized their common 
determination to resist aggression. They are convinced 
that SEATO is providing an effective deterrent to ag- 
gression and is demonstrating the value of a collective 

security organization established in accordance with the 
Charter of the United Nations. They noted that since 
the establishment of SE.\TO four years ago no aggres- 
sion against the treaty area has been attempted. Con- 
fidence and stability have noticeably increased. This is 
in marked contrast to the threatening situation which 
existed when SEATO was formed in September 1954 and 
is ample evidence of the steadying influence of the 

However, during the past year developments in the 
Taiwan Strait and elsewhere have demonstrated that the 
Communists are still prepared to pursue their objectives 
by violence up to the point where they encounter firm 
resistance. Despite the continuing possibility of open 
aggression the principal threat to the security and inde- 
pendence of the treaty area is now being presented in 
more indirect forms. These call for imaginative and 
varied counter measures. 

Mobility and flexibility have long been characteristic of 
the SEATO alliance. Similar qualities are being devel- 
oped in response to the diverse nature of the Communist 
challenge. The Council members are aware of the oppor- 
tunities afforded for subversive activities in situations 
where basic problems of hunger, lack of opportunity and 
underdevelopment remain unsolved. In these circum- 
stances not only ceaseless vigilance, but also positive 
measures, are the price of freedom. 

So far SEATO has done much to publicize and expose 
throughout the treaty area the objectives towards which 
subversion is directed and the methods by which it op- 
erates. The SEATO Council remains conscious of con- 
tinuing disorder and has agreed that during the coming 
year arrangements should be made for the further 
strengthening of this aspect of SEATO's work. For ex- 
ample, it is proposed that a meeting of experts on counter- 
subversion should be held in Pakistan. 

The Council members recognize the need for continuing 
action in the economic and social sphere. Under article 
III SEATO members are pledged to cooperate in the 
economic fleld. During the last four years considerable 
progress has been made in the development of economic 
measures in consonance with treaty objectives. 

It was recognized that the raising of living standards 
and the provision of opportunity for advancement are im- 
portant to the security of the area. It was agreed that 
poverty and underdevelopment are problems affecting 
several countries in the area and must be dealt with on 
the broadest possible basis. Account was taken of the 
substantial volume of aid already afforded under the 
Colombo Plan, United Nations and bilateral programs. 

Special attention is paid by SEATO to questions arising 
out of treaty commitments. These include shortages of 
skilled labor, strains resulting from defense preparedness 
and the needs of underdeveloped areas. 

Several multilateral SEATO economic activities di- 
rected toward solving the above problems are now gaining 
momentum. A number of skilled labor projects have 
been started and the SEATO graduate school of engineer- 
ing in Bangkok is scheduled to open in September of this 
year. With reference to the latter program additional 
substantial offers of assistance were accepted with 
pleasure by the Council. 


Deparfmenf of State Bulletin 

On the initiative of Thailand the Council representatives 
were instructed to study the feasibility of setting up in 
the Asian member countries rural development centers 
equipped to give vocational guidance and to advise the 
population on vs'ays and means to improve their liveli- 
hood, health, and education and information facilities. 

The Council welcomed and approved a United States 
proposal to initiate a special SBATO project in cholera 
research and invited member governments to participate 
In this project. The Council believes that it vcould be 
useful to undertake a concentrated program aiming at 
assisting in the better control and if possible the eradi- 
cation of the scourge of cholera. 

SEATO is concerned with study of the effects of Com- 
munist economic activities in the treaty area. While the 
expansion of legitimate trade by all countries of the 
world is to be encouraged, it is in the Interests of inter- 
national order that where Communist economic activity 
is clearly dictated by political motives, this should be 
identified and exposed. 

The Council approved the outlines of a long-term pro- 
gram of multilateral cultural projects which will supple- 
ment the substantial bilateral contacts which already 
exist. Special importance was placed upon the contin- 
uance of the award of scholarshijis, professorships, fellow- 
ships and travelling lectureships in member countries and 
upon the holding of a conference of leaders of universities. 

The Council believes that the present programs have 
been conspicuously successful and indicate that diversity 
of culture and tradition can in fact enrich mutual under- 
standing and trust. 

The Council noted with special pleasure the progress 
towards self-government and independence being made 
in territories administered by member countries. This 
constitutes a practical example of the manner in which 
the principles of the Pacific Charter are being fulfilled 
by member countries. It illustrates that SEATO's con- 
cern for stability and security is no barrier to action by 
its members to promote political progress and social 

The Council noted the stark contrast between these de- 
velopments and the situation in Tibet and other areas 
subject to Communist domination. As members of the 
free world community the members of SEATO share the 
general concern at developments in Tibet and the widely 
expressed abhorrence of the violent and oppressive meas- 
ures employed against the Tibetan people. 

The Council noted the report of the Secretary General 
on his visits to NATO and Baghdad Pact headquarters. 
They agreed that there was value in the maintenance of 
contacts of this nature with other collective security or- 
ganizations faced with similar tasks and problems. 

In noting and approving reports of the military advisers 
and their recommendations for future activities, the Coun- 
cil reaffirmed the necessity for continued planning of de- 
fensive measures against possible aggression directed at 
the treaty area. 

During the year Brigadier L. W. Thornton of New 
Zealand assumed the post of chief of the SEATO Military 
Planning Office. The Council commended the work done 
under his leadership, which has proved the value of this 
central and permanent planning machinery. 

Further military exercises were held during the past 
year. All were of a defensive and training character and 
forces or observers of all member nations participated. 
Exercises of this nature have special value in improving 
coordination and the level of training. In the event of 
the need to resist aggression, SEATO's effectiveness must 
depend on the ability of its forces to operate together in 
combination. It was accordingly agreed to continue the 
program of military exercises during the coming year. 

The Council approved budget estimates for the year 
1959/60 of $896,860, covering the costs of the civU and 
military headquarters and the various programs under- 
taken by the Organization. 

The Council accepted with pleasure an invitation ex- 
tended by the United States Government to hold its next 
meeting in Washington in 1960. 

Members of the Council joined in expressing their re- 
gret that illness had prevented the United States Secre- 
tary of State, Mr. John Foster Dulles, from attending 
this fifth meeting. Tributes were paid to the special and 
longstanding association of Mr. Dulles with the establish- 
ment and work of SEATO, and a message of sympathy 
was sent to him by the chairman on the Council's behalf. 
A similar message was sent to Mr. Felixberto Serrano, 
the Secretary of Foreign Affairs of the Philippines, who 
had also been prevented by illness from attending the 

The Council expressed its gratitude to the New Zealand 
Government and the people of Wellington for their hos- 
pitality and welcome, and its appreciation of the efficient 
arrangements made for the conference. The meeting 
closed with a warm vote of thanks to the chairman, the 
Right Honorable Walter Nash. 

Report on SEATO, 1958-59 ' 

lyy Pote Sarasin 
Secretary General 


The South-East Asia Collective Defence Treaty, 
also known as the Manila Pact, was signed at 
Manila on September 8, 1954 by the represent- 
atives of Australia, France, New Zealand, Paki- 
stan, the Philippines, Thailand, the United King- 
dom and the United States. The Treaty came 
into force on February 19, 1955, following the 
deposit of ratifications by the eight member 
countries. Four days later, the Coimcil met in 
Bangkok to create the framework of the Soiith- 

' Issued in connection with the fifth annual meeting of 
the Council of Ministers at Wellington, New Zealand, 
Apr. 8-10, 19.59, for simultaneous release at Washington, 
London, and Paris (Mar. 31) and at Bangkok, Canberra, 
Karachi, Manila, and Wellington (Apr. 1). 

April 27, 7959 


East Asia Treaty Organization. They have since 
met at Karaclii in March, 1956, at Canberra in 
March, 1957, and at Manila in March, 1958, to 
review the work of tlie Organization and to set 
the pattern of its future development and 

This report gives an account of the work and 
development of SEATO in its fourth year.^ It 
also describes the efforts of the member coimtries, 
collectively and individually, to achieve the ob- 
jectives of the Treaty, and to make SEATO an 
increasingly effective instrument of security and 
peaceful progress in the Treaty Area. 


The South-East Asia Collective Defence Treaty 
continues to be an effective instrument to preserve 
peace in the Area covered by the Treaty.^ The 
peoples and Governments of SEATO believe that 
collective defence is necessary to give and provide 
security to the free countries. 

The member nations maintained their assistance 
to one another throughout 1958 and with the pro- 
tection afforded by the Treaty, were able to de- 
velop their individual plans for economic and 
social pi'ogress. 

At the same time, aware that international 
Communism may again attempt the seizure of 
power by military means, they kept their armed 
forces at a high pitch of effectiveness, and con- 
tinued to collaborate in planning for defence. 

They also developed their co-operation with one 
another in countering Communist subversion, 
wliich remained a major threat to the national 
security and free institutions of countries in the 

Political consultations which demonstrated the 
sense of common purpose of the alliance were 
held more frequently in 1958 than in any previous 

At SEATO Headquarters in Bangkok, where 
such consultations take place, the Secretariat- 
General expanded its services to the Governments 

' For text of the third annual report, see Bulletin of 
Mar. 31, 1958, p. 509. 

" The Treaty Area is the general area of South-East 
Asia including also the entire territories of the Asian 
parties (Pakistan, the Philippines and Thailand), and the 
general area of the South- West Pacific, not including the 
Pacific area north of 21 degrees 30 minutes north 
latitude. [Footnote in original.] 

and peoples of the member countries. New cul- 
tural projects were launched, the information 
programme was diversified and improved, and 
the Organization's research activities were found 
increasingly useful, particularly by the Asian 
member Governments. 

On the economic front, SEATO projects to im- 
prove the training of skilled workers were inau- 
gurated in each of the Asian member coimtries. 
The first steps were taken towards the establish- 
ment of the SEATO Graduate School of Engi- 
neering in Bangkok. Several member Govern- 
ments are contributing to this project. 

A notable development was the establishment 
of contact with the Baghdad Pact Organization 
and the North Atlantic Treaty Organization. An 
exchange of information will be of great benefit 
to all three Organizations in working towards 
their common objectives. 

Throughout the Treaty Area, there was greater 
public awareness of the dangers of Communism, 
and consequently a greater capacity to recognize 
and counter Communist tactics. The role of 
SEATO in South-East Asian affairs as an instru- 
ment of protection and stability was more clearly 

The member Governments found no reason to 
believe that the Communist threat to the Treaty 
Area had lessened, or that international Com- 
munism had ceased to regard South-East Asia as 
a particularly favourable area for expansion in its 
efforts to dominate the world. 

They therefore maintained their vigilance, in- 
dividually and collectively through SEATO, 
which, in its fourth year, showed in increased 
effectiveness the results of constant and harmoni- 
ous co-operation based on mutual trust and good- 


Two principal conclusions may be drawn from 
the surveys of international Communist devel- 
opments carried out by the Organization during 
the past year. 

The first is that, despite the pretence of "peace- 
ful co-existence", the Communist leaders are still 
striving to keep the world in a state of tension. 
In succession, they fomented crises in the Middle 
East, in the Taiwan Straits, and over Berlin. 


Department of Stafe Bulletin 

Secondly, their policy employs a mixture of 
threats and blandishments: warnings of nuclear 
destruction alternated with promises of increased 
trade, development loans and cultural exchanges. 
While the Communists attempt to overcome by 
the threat of force any resistance to their objec- 
tives, at the same time, by the use of "peaceful" 
propaganda and the exploitation of front organ- 
izations, they are making a determined effort to 
gain popular support. 

The adoption of a political strategy emphasis- 
ing "respectability" (with force held in reserve) 
is in line with the policy laid down by the Moscow 
Declaration of Communist Parties in 1957, which 
was reaffirmed in 1958. This declaration urged 
local Communist Parties to seek broader public 
approval by collaborating with nationalist and 
socialist movements and to represent themselves as 
democratic political bodies. 

In the process of identification with nationalist 
aspirations, the Commimists attempt to influence 
or penetrate key groups (in the administration, 
political parties, the armed forces, student groups 
and the professions) as well as to capture and 
control "mass" organizations of trade unions and 
youth and women's movements. 

Communist insurgents, who are still active in 
certain countries of Asia, have tried to negotiate 
a settlement on their own terms with the lawful 
governments. The Communists have also made 
considerable use of "front" organizations, par- 
ticularly where the Party is illegal, and are en- 
deavouring to extend their influence among the 
Overseas Chinese in South-East Asia. 

In seeking to gain control over the countries of 
the Free World, international Communism gives 
high priority to the expansion of Communist in- 
fluence in Asia and Africa, where standards of 
living are still comparatively low and economic 
development is slow. 

An important objective of the Communists in 
South-East Asia is to over-awe the free countries 
with the power and the stern discipline of Com- 
munist China and the Soviet Union. 

The undoubted achievements of the Soviet 
Union in outer space research have created a fa- 
vourable impression of scientific progress. While 
the Free World camiot underestimate the propa- 
ganda impact of such achievements it is, neverthe- 
less, mindful that the price of progress achieved 
imder Communism is ruthless discipline and regi- 

The total power of Communism over the in- 
dividual was strikingly illustrated in Communist 
China by the organization of "people's com- 
munes". Chinese peasants, originally promised 
"the land to the tillers", have long been collec- 
tivized and have now lost their small private 
plots of land. The mobilization of women for 
labour and the removal of children to communal 
nurseries and schools as well as the loss of per- 
sonal freedom have effectively destroyed family 

The bitter campaign against "revisionism," 
typified by the Soviet Union's withdrawal of aid 
from Yugoslavia, demonstrates the refusal by 
Moscow and Peking to accept any form of inde- 
pendence from the Party line. 

Other events which led to a revulsion against 
Communism in many countries were the execu- 
tion of Imre Nagy, formerly Prime Minister of 
Himgai-y and other leaders of the Hmigarian 
revolution, as well as the refusal to allow United 
Nations' representatives to visit Hungary; and 
the persecution of the Soviet writer Boris Paster- 
nak, author of the novel "Dr. Zhivago", for ac- 
cepting a Nobel Prize awarded for his contribu- 
tions to literature. 

Strong measures to check Communist activities 
were taken by the Government of a number of 
countries in the Treaty Area. One aspect of the 
Communist threat — the economic offensive, partic- 
ularly from Communist China — -however, caused 
increasing concern. 

There was a notable shift in the offensive from 
trade and aid agreements — previously strongly 
promoted — ^to actual trade penetration. Al- 
though, in the case of Communist China, in- 
creased exports of manufactured goods and raw 
materials are partly due to the need for foreign 
exchange, they also constitute a conscious effort 
to disrupt trade. 

By the carefully-timed unloading of quantities 
of low-priced goods, Communist China has upset 
the local markets in the Treaty Area (though 
counter-measures have been taken in some coun- 
tries) and has affected the normal flow of trade 
with the free countries of the world. A part of 
the proceeds from the sale of these goods is used 
for purposes of propaganda and subversion. 

While the Commiuiists place considerable em- 
phasis on "peaceful" economic and political pene- 
tration, and have intensified their cold war tactics 

April 27, 1959 


during the past year, they are still prepared to 
resort to violence to achieve their objectives. 

The basic threat of armed force and subversion 
led to the establishment of SEATO in 1954. The 
continuing tlireat to the peace and independence 
of the countries of South-East Asia is the justifi- 
cation for collective security today. 


Under the direction of the Council, the 
Organization jsursues its objectives in two main 
directions, military and civil. 

Military Activities 

The military activities of the Organization are 
directed by the Military Advisers, a group con- 
sisting of one senior militaiy representative of 
each member country. The Militaiy Advisere 
held their two normal meetings in 1958 — one im- 
mediately before the meeting of the SEATO 
Council at Manila in March, and the other at 
Bangkok in September. 

Under their direction, the SEATO Military 
Planning Office in Bangkok continued its work of 
developing detailed defensive plans. Brigadier 
L. W. Thornton, C.B.E., of New Zealand, suc- 
ceeded Brigadier-General Alfredo M. Santos, of 
the Philippines, as Chief, SEATO Military Plan- 
ning Office in July, 1958. 

Since the last meeting of the SEATO Coimcil, 
four SEATO combined militaiy exercises have 
been held, and a fifth will be staged shortly. 

The first, Exercise Vayubut, which took place 
in Thailand from April 22 to 26, demonstrated 
air suppoi-t of gromid forces. In the exercise, 
units of New Zealand, Thailand, the United King- 
dom and the United States took part. 

The second SEATO exercise was the maritime 
training operation Oceanlink, which began on 
April 28. Twenty-four ships from five of the 
SEATO nations sailed from Singapore, and after 
two weeks in the international waters of the South 
China Sea, entered Manila Bay on May 13. Simu- 
lated submarine and air attacks were a feature of 
the exercise, in which the aircraft carriers HMAS 
Melbourne, HMS Bulwark and USS Philippine 
Sea took part. 

Exercise Kitisena, sponsored jointly by Thai- 
land and the United States took place in northern 

Thailand in January this year. This was a com- 
mand post exercise designed primarily to train 
conamanders and staffs in the employment of mil- 
itary forces in defensive operations. 

Air contingents from six of the SEATO na- 
tions, and paratroops from Thailand, France and 
the United States took part in Exercise Air 
Progress which was held in Thailand in March. 

The fourth large SEATO naval exercise will 
begin soon. Six of the member nations will 

Other bilateral and multilateral exercises were 
carried out by several of the member countries in 
1958, and a further series of SEATO training 
exercises will be held this year to continue the 
work of co-ordinating the armed forces of the 
member nations. 

Civil Activities 

The Council Kepresentatives, who direct the 
non-military work of the Organization when the 
Council is not in session, held 17 meetings in 1958. 
A most valuable feature of these meetings is the 
exchange of views on the political situation in the 
Treaty Area, which enables the Organization and 
the individual member Goverimients to evaluate, 
expose and comiter Communist activities. 

The Organization has three civil expert com- 
mittees. The Committee of Security Experts held 
two meetings, and the Committee of Economic 
Experts and the Committee on Information, Cul- 
tural, Education and Labour Activities one meet- 
ing each in 1958. 

These committees consider various aspects of 
the work of the Organization and make recom- 
mendations to the Council Kepresentatives. They 
have continued to be valuable fomms for the ex- 
change of views among the Member Governments, 
and to fulfil their tasks of recommending policies 
for the Organization's research, economic, cultural, 
and information programmes. 

The work of implementing these programmes 
falls to the Secretariat-General, which supports 
and co-ordinates the civil work of the Organiza- 
tion at SEATO Headquarters in Bangkok. The 
Secretariat-General is composed of an interna- 
tional staff in wliich all the member countries are 
represented, and a locally-recruited staff. The 
international staff reached its full authorized 
level during the year. 


Deparfment of State Bulletin 

Countering Communist Subversion 

The responsibility for action in countering Com- 
munist subversion rests primarily with the Mem- 
ber Governments, vs^ho believe that the best defence 
against the subversive threat and the insidious 
effects of Commmiist propaganda is a well-in- 
formed public. 

It is, however, the duty of the Organization to 
assist the member Governments, and it has done 
so in a number of ways. One of the principal 
SEATO agencies in identifying the subversive 
threat is the Committee of Security Experts. 
Studies by the other expert committees have also 
given member Governments valuable guidance in 
countering subversion in their territories. 

The Research Services Office of the Secretariat- 
General has continued to supply member Gov- 
ernments with regular reports on current develop- 
ments in Communist activities throughout the 
world, with particular reference to the Treaty 
Area. Special studies on particularly important 
developments have been prepared, and the office 
has also completed a number of studies at the 
request of the expert committees. 

The Public Information Office has helped to 
counter Conununist subversion by the issuing of 
statements on special topics and the publication of 
pamphlets — some of them in Urdu, Bengali, and 
Thai as well as in English — exposing various 
aspects of the Commimist threat. In all, 15 ex- 
posure pamphlets were produced during the year. 

Economic Activities 

The Committee of Economic Experts at its 1958 
meeting intensified its study of the Communist 
economic offensive, and the Organization is ac- 
cordingly collecting and analyzing information 
for member Governments to assist them in taking 
counter-measures. The Committee also took into 
consideration the economic problems of certain 
areas of the Asian member countries, with a view 
to finding suitable remedies, and covered the whole 
field of co-operative economic effort within the 
SEATO partnership. 

Economic assistance to SEATO countries is 
given largely on a bilateral basis. However, cer- 
tain projects have justified collective study and 

It is one of the most pleasing results of the ini- 
tiative taken by SEATO that a start has been 

made on four important economic projects in the 
year under review. 
These are : 

• The SEATO Graduate School of Engineering 
in Bangkok. This school, due to open in Septem- 
ber, 1959, is expected to make an important con- 
tribution to the improvement of technological 
education in the area. It will admit graduate 
students from both member and non-member 
countries of South-East Asia. The school is a 
project of the Government of Thailand. Assist- 
ance is being given by the United States under 
a three-year contract with the Colorado State 
University. France and New Zealand have 
agreed to provide assistance, while Australia has 
under consideration proposals to provide staff, 
scholarships or equipment. The Philippines has 
made a financial contribution, and the United 
Kingdom is actively considering suitable assist- 
ance to the school. 

• Three projects designed to improve the supply 
of skilled labour in Pakistan, the Philippines and 
Thailand. These projects arise directly from the 
studies and recommendations of the SEATO 
Study Group on Shortage of Skilled Labour. In 
each country, agreements have been concluded by 
the member Governments with the United States. 

The agreement with Pakistan provides for the 
improvement of training in 12 or more trades, 
principally through assistance to existing training 
centres in Karachi and Dacca. 

In the Philippines, assistance will be given to 
apprenticeship training, vocational training in the 
textile industry, and labour market information 
and statistical services. 

In Thailand, where a team from the University 
of Hawaii is already at work, 15 schools giving 
training in woodworking are to be converted into 
general industrial training centres, preparing 
workers for a number of trades. 

Australia, which has allotted $6,720,000 for eco- 
nomic assistance designed to improve the defensive 
strength of SEATO, sent a mission to the Asian 
member countries late in 1958 to investigate the 
possibility of assisting them to overcome their 
shortages of skilled labour. 

Other steps in the economic field include a 
French offer of technical scholarships and the 
service of experts on request. Awards to the 
Asian member countries for teclinical training in 

April 27, 7959 


its institutions and factories have been offered by 
New Zealand. 

Within the Secretariat-General, the Economic 
Services Office prepared studies for the Com- 
mittee of Economic Experts, and made reports for 
the member Governments on cuiTent economic 
problems and developments, including aid offered 
and provided to the member countries of the 
Treaty Area and the States covered by the Pro- 
tocol to the Treaty.* 

Cultural Relations 

The main purposes of the SEATO cultural re- 
lations programme are to give the peoples of the 
member countries increased awareness of the com- 
mon values of their respective cultures; to pro- 
mote closer co-operation in scientific research and 
technological development; and to improve mu- 
tual knowledge of each other's cultures. 

The cultural programme was considerably ex- 
panded in 1958. A second series of research fel- 
lowships was begun, awards being made to 11 ad- 
vanced scholars to undertake research projects. 
Scholars are selected on the basis of the contribu- 
tion their work is likely to make to understanding 
of the problems of the Treaty Area, or to assist 
the economic and social advancement of its 
peoples. A third series of fellowships was an- 
nounced in January this year.^ 

The establishment of 12 post-graduate scholar- 
ships, and not fewer than 30 under-graduate 
scholarships, for students of universities in the 
Asian member countries, 6 travelling lectureships 
and 3 professorships was approved. Awards were 
announced late in 1958 and early this year for 
all these projects. 

The post-graduate scholarships provide students 
with the opportunity to travel for the purpose of 
study at a university of one of the other Asian 
member countries; the under-graduate scholar- 
ships assist students of promise to complete their 
degrees in universities in their own countries. 

The professorships are intended to supplement 
the training offered by the universities of the Asian 
member countries. On the basis of requests made 
by Pakistan, the Philippines and Thailand, a 
SEATO professorship has been established for 
one year, with the possibility of extension, at a 
univei'sity in each country. 

'Cambodia, Laos and Vietnam. [Footnote in original.] 
' Bulletin of Mar. 30, 1959, p. 444. 

The purpose of the lectureship programme is to 
bring cultural leaders of high standing to the 
Asian member countries. The travelling lecturers 
spend two to three weeks in each country they 
visit, fulfilling speaking engagements, and bring- 
ing up-to-date their knowledge of local problems 
and progress in their particular fields of interest. 

A further cultural activity was the publication 
of a book giving a sununary of the discussions and 
the full texts of papers delivered at the South-East 
Asian Romid Table, which brought together 14 
eminent scholars — 9 from the member countries, 2 
from India, and 1 each from Japan, Vietnam and 
Sarawak — in Bangkok early in 1958 to discuss the 
impact of Western teclinology on Asian tradi- 
tional cultures. 

The development of the SEATO cultural pro- 
gramme over a five-year period was discussed by 
an ad hoc committee on cultural policy in mid- 
1958. Proposals made by the committee will be 
considered at the forthcoming meeting of the 

Public Information Activities 

The SEATO Public Information Office supple- 
ments the efforts of the member Govenmients to 
explain the aims and work of the Organization. 
The office produces material which the member 
Governments may use for national purposes to 
make known the nature of Communism ; and seeks 
to develop the sense of association among the mem- 
ber countries. 

Publications totalling nearly one million copies 
were produced in 1958. The office completed its 
range of basic information pamphlets, and is now 
producing a number of books and pictorial posters. 
Twenty radio programmes were produced in 1958 
and distributed to the radio services of the mem- 
ber countries. This aspect of the office's work is 

One film, "Partners for Peace", was completed 
for the Organization by the New Zealand Na- 
tional Film Unit. A cartoon film is being pro- 
duced by the United States Information Agency 
and is nearly ready for exhibition. Four further 
films have been planned. 

The work of the Public Information Office is 
being expanded and diversified, and, with an aug- 
mented staff, the office can give more attention to 
the specialized needs of the individual member 

The Committee on Information, Cultural, Edu- 


Department of State Bulletin 

cation and Labour Activities held one meeting in 
1958. In addition to surveying co-operation 
among the member Governments over a wide field, 
the committee made recommendations for the fu- 
ture development of the work of the Cultural Re- 
lations Office, Public Information Office, and Ee- 
search Services Office. 

Oificial Tours 

Since the last meeting of the SEATO Council 
I have made official visits to six of the member 
countries at the invitation of their Governments. 

In August, 1958, I visited Australia and New 
Zealand, and at the end of December another tour 
was made which included visits to Pakistan, the 
United Kingdom, France and the United States. 

Such visits are invaluable. They enable the 
Organization to obtain the views of members of 
the SEATO Council, and officials of the Foreign 
Offices of the member Goverimients on its work 
and development. Such visits also focus the at- 
tention of the peoples of the member countries 
on SEATO and the importance of its role in 
collective defence. 

In the course of the latter tour I also visited the 
headquarters of the Baglidad Pact Organization 
in Ankara, and those of NATO in Paris. These 
visits began the implementation of the directive 
of the SEATO Council a year ago that an ex- 
change of information should be developed be- 
tween SEATO and other collective defence or- 
ganizations of the Free World. 


There were numerous distinguished visitors to 
SEATO Headquarters in 1958. Among them 
were the Prime Minister of New Zealand, the 
Rt. Hon. Walter Nash, and General Thanom 
Kittikachorn, then Prime Minister of Thailand. 


The member Governments have co-operated 
wholeheartedly with one another in the past year 
in fulfilling the objectives of the South-East Asia 
Collective Defence Treaty. 

Meeting the Subversive Threat 

Member countries continued to assist one an- 
other by the exchange of information and training 
of officials, with a view to combatting Communist 

In Pakistan, the Philippines and Thailand, 
where the Communist Party is outlawed, strong 
measures were taken in 1958 to suppress subver- 
sive activities. 

• The threat of Communist subversion in Paki- 
stan had lessened towards the end of the year, 
partly as a result of an improvement in general 
administration and in economic conditions. There 
was practically no open Communist agitation, but 
"front" organizations were still active. 

• In the Philippines^ efforts were intensified to 
capture the leaders of the Communist Hukbalahap 
movement. Since the outlawing of the Com- 
munist Party in June, 1957, at least ten important 
figures in the movement have been apprehended. 
The number of armed dissidents at the end of 
1958 was estimated at only 400, compared with 
700 earlier in the year. 

• Resolute action by the Government brought 
Communist subversive activities — particularly 
among the press, political parties, students and 
labour imions — to a standstill in Thailand. A 
number of extreme left-wing newspapers which 
were suspected of receiving outside aid were 
closed. A ban was placed on the impoi'tation and 
sale of goods from Commimist China. 

Military Co-operation 

The known military preparedness of Communist 
China, its vast military potential, and the support 
it might expect to receive from the Communist bloc 
in committing aggression in the Treaty Area con- 
stitute a continuing threat to the member nations 
of SEATO. 

Individually and together, the member coun- 
tries have therefore improved their defensive tech- 
niques and the co-ordination of their forces in the 
past year. SEATO combined exercises have dem- 
onstrated their combat effectiveness. 

The emphasis has remained on the building up 
of highly trained and mobile defence forces. 

Bilateral military assistance programmes were 
continued in 1958. 

Australia has devoted a large part of the sum 
set aside for economic assistance for SEATO de- 
fence to the provision of non-combat equipment to 
the forces of the Asian member countries. Train- 
ing was given to 69 students from other SEATO 
countries in Australian service establishments in 

France, which maintains military missions in 

April 17, ?959 


Cambodia and Laos, continued her assistance in 
training and equipment to these countries and has 
completed a programme of gendarmerie training 
in the Republic of Vietnam. Thai and Pakistani 
officers attended French military schools. 

The United Kingdom provided training for 
service personnel from Australia, New Zealand, 
Pakistan and Thailand. 

The United States continued to give military 
assistance, with emphasis on technical training, to 
the Asian member countries. Since the creation 
of SEATO, 27,947 students from the armed forces 
of the other member countries have completed 
courses of training in United States service schools. 
On June 30, 1958, a total of 406 were in training. 

The United States and the Philippines are col- 
laborating in the establishment of the Pacific De- 
fence college in the Philippines, which will provide 
training in combined and joint operations for mili- 
tary officers of the SEATO member nations and 
other free nations in the Western Pacific area. 

Economic Aid 

In the three Asian member countries economic 
development continued in 1958 but at a lower rate 
than in the previous year. Falling prices for agri- 
cultural and mineral products, and unfavourable 
climatic conditions affecting agricultural output 
were reflected in adverse balances of payments. 
Inflationary pressures, as in other Asian countries, 
tended to increase. 

In spite of these difficulties, Pakistan, the Philip- 
pines and Thailand are making progress by their 
own efforts and assistance from their SEATO 

The total amount of aid received by Pakistan, 
the Philippines, Thailand and the States covered 
by the Protocol to the Treaty in 1958 under various 
international programmes is estimated at over 
$600 million. This aid was given mainly on a bi- 
lateral basis. 

Australia, in addition to its economic assistance 
for SEATO defence, provided capital aid amount- 
ing to $2.7 million under the Colombo Plan to the 
Asian member countries and the States covered by 
the Protocol to the Treaty in the year ended Sep- 
tember 30, 1958. In the technical assistance field, 
Australia has received 571 trainees from these 
countries since the inception of the Plan, and has 
supplied 78 experts and large quantities of tech- 
nical equipment. 

France granted scholarships for training and 
supplied expert missions to the Asian member 
countries, and concentrated its efforts in the States 
covered by the Protocol to the Treaty. Develop- 
ment works assisted in these States ranged from 
the construction of wharves and airports to the 
provision of equipment for hospitals, scientific in- 
stitutes and laboratories. The total amount of aid 
to these States in 1958 exceeded $9 million. 

New Zealand's aid under the Colombo Plan to 
the member nations and States covered by the 
Protocol amounted to $5.2 million by November, 
1958. A total of 118 trainees had undertaken or 
were undertaking courses in New Zealand and 15 
experts had been provided. The fields in which 
assistance has been given are agriculture, health, 
education and industry. 

The United Kingdom gave aid totalling nearly 
$5.5 million to member countries in the Treaty 
Area and States covered by the Protocol in the 
year ended October 31, 1958. 

United States assistance amoimted to $340 mil- 
lion, comprising grants and loans under the 
Mutual Security Programme, credits by the Ex- 
port-Import Bank, and grants and loans of local 
currency acquired under the Agricultural Trade 
Development and Assistance Programme. In ad- 
dition, the member countries and the States cov- 
ered by the Protocol benefitted by assistance from 
the President's Fund for Asian Economic Devel- 
opment and the Development Loan Fund. 

Projects to be financed from the President's 
Fund include the construction of telecommunica- 
tions facilities in Thailand, Laos and Vietnam, 
and a road and railway project to improve com- 
munications between Pakistan and Afghanistan. 
In its first nine months of operations, the Develop- 
ment Loan Fund had, up to October 31, 1958, ap- 
proved loans totalling $92 million for such proj- 
ects as water and sewage installations, railway 
facilities and irrigation in countries in the Treaty 

The encouragement of private investment by the 
Asian member countries and States covered by the 
Protocol had good residts in 1958, and a significant 
contribution to the development of the area was 
made by private institutions. 

Cultural and Social Ties 

By encouraging goodwill visits, study tours and 
other forms of cultural exchange, the member Gov- 


Department of State Bulletin 

ernments have continued to show their desire to 
increase mutual confidence, goodwill and under- 
standing among their peoples. 

Australia's friendly relations with other mem- 
ber countries of the Treaty Area and the States 
covered by the Protocol to the Treaty were fos- 
tered during 1958 by an increase in the number of 
students and other visitors. The latter included 23 
Asian journalists. 

Educational assistance given by Australia in- 
cluded the sending of experts in the teaching of 
English to the Protocol States, scholarships to 
students of these countries and the Asian member 
coimtries to study in Australia, the supply of text- 
books and equipment for research and correspond- 
ence courses at university level for Philippine and 
Thai students. 

France granted 60 scholarships, provided the 
services of educational experts to the Asian mem- 
ber countries, and sponsored journeys to France by 
leading personalities from these countries. 

Scientific establisliments, and schools with a 
total enrolment of nearly 13,000, are maintained by 
France in the States covered by the Protocol to the 
Treaty. In Laos and Vietnam, France maintains 
145 pi'ofessors and teachers; the salaries of 200 
professoi's and teachers in Cambodia are shared 
with the Cambodian Government. 

France awarded over 1,000 scholai-ships for 
study in French and local institutions to students 
of the Asian member countries and the States 
covered by the Protocol. 

New Zealand provided courses of study for stu- 
dents from the Asian member countries and Viet- 
nam, and supplied experts to these countries. 

Pakistan is offering scholarships to France and 
the Philippines to promote cultural relations. 

Art exhibits were exchanged by Pakistan and 
France, and a comjirehensive exhibition of 
Pakistani art and archaeology for display in the 
United States is being planned. 

Philippine cultural groups and an exhibition 
of contemporary paintings toured other member 
countries in Asia. 

Students from other member countries took part 
in international festivals at Philippine uni- 

Thailand offered fellowships and scholarships 
to students of the member countries and other 
countries in the Treaty Area. Educational as- 
sistance to Laos included the offer of higher educa- 

tion in Thailand to 85 students and the supply of 
journals, docmnents, and textbooks. During the 
year there was an increase in the number of stu- 
dents and visitors. These included 175 educators 
who came to observe educational methods in 

The United Kingdom received 17 visitors from 
Pakistan and 9 from Thailand under the auspices 
of the British Council. Lecture tours by 11 visit- 
ing experts were sponsored by the British Council 
in Pakistan and 4 similar tours were arranged in 

Direct educational aid in the form of equipment, 
books and films, and (except for the Philippines) 
teaching staff, was given by the United Kingdom 
to the Asian member and non-member countries. 

A large proportion of trainees from the Treaty 
Area visiting the United Kingdom imder the 
Colombo Plan were from the Asian member coun- 
tries and States covered by the Protocol. 

The United States gave extensive educational 
assistance, through the supply of experts and 
equipment to the Asian member and non-member 
countries. Under an international educational 
exchange programme, 407 grants for visits to the 
United States were made to nationals of these 
countries and Australia and New Zealand, which 
in turn received 164 holders of grants from the 
United States, in the year ended June 30, 1958. 

Information on SEATO 

In addition to securing extensive press and 
radio coverage for SEATO programmes and 
events, and giving national distribution to 
SEATO publications, member Governments in 
1958 sponsored essay contests on the subject of 
collective security in South-East Asia, and ar- 
ranged for the commemoration of SEATO Day, 
the armiversary of the signing of the South-East 
Asia Collective Defence Treaty. 


SEATO was bom from the determination of its 
members to preserve their freedom and way of life, 
and to choose their independent path into the 

United in the free and equal partnership of 
SEATO, they have created a bond between nations 
of East and West, in which widely separated peo- 

April 27, 7959 


pies of different races and religions find a common 
basis for action. 

They are determined to oppose aggression and 
subversion, and by so doing to give hope and en- 
couragement to the peoples of South-East Asia in 
furthering their spiritual and material progress. 

In the conviction that the free nations must 
stand together to assure peace and security 
throughout the world, they will continue to 
strengthen the protective shield of SEATO, as 
an instrument of collective defence and interna- 
tional co-operation. 


Current Actions 



Convention on international civil aviation. Done at Chi- 
cago December 7, 1944. Entered into force April 4, 
1947. TIAS 1591. 

Adherence deposited: Republic of Guinea, March 27, 
Amendment of article V of agreement for joint financing 
of certain air navigation services in Greenland and the 
Faroe Islands (TIAS 4049) by increasing assessment 
Amendment of article V of agreement for joint financing 
of certain air navigation services in Iceland (TIAS 
4048) by increasing assessment limits. 
Adopted at the Second Special North Atlantic Fixed 

Services Meeting, Paris, January 12-21, 1959. 
Entered into force: February 25, 1959 (consents in ex- 
cess of 90 percent of contfMting governments having 
been received pursuant to article VI of agreements). 

Customs Tariffs 

Convention creating the international union for the publi- 
cation of customs tariffs, regulations of execution, and 
final declarations. Signed at Brussels July 5, 1890. 
Entered into force April 1, 1891. 26 Stat. 1518. 
Adherence deposited: Federation of Malaya, March 2, 

Protocol modifying the convention of July 5, 1890 (26 
Stat. 1518), creating an international union for the 
publication of customs tariffs. Done at Brussels Decem- 
ber 16, 1949. Entered into force May 5, 1950. TIAS 

Adherence deposited: Federation of Malaya, March 2, 


Protocol for termination of agreement for unification of 
pharmacopoeial formulas for potent drugs of November 
29, 1906 (TS 510). Signed at Geneva Mav 20, 1952. 
Entered into force May 20, 1952. TIAS 2692. 
Notification by United Kingdom of application to: Aden ; 

Basutoland ; Bechuanaland Protectorate ; Bermuda ; 

British Guiana ; British Honduras ; Brunei ; Cyprus ; 

Fiji; Gambia; Hong Kong; Kenya; Malta; Mauri- 
tius; Federation of Nigeria — Northern, Eastern, and 
Western Regions ; North Borneo ; Federation of Rho- 
desia and Nyasaland; Swaziland; St. Helena; Sara- 
wak; Seychelles; Sierra Leone; Singapore; Somali- 
land Protectorate; Tanganyilia (under United 
Kingdom Trusteeship); Uganda Protectorate; The 
West Indies — Bahamas, Barbados, Jamaica, Leeward 
Islands (Antigua, Montserrat, St. Kitts— Nevis, An- 
guUla), Trinidad, Windward Islands (Dominica, 
Grenada, St. Lucia) ; Western Pacific High Commis- 
sion Territories — Gilbert and Ellice Islands Colony ; 
British Solomon Islands Protectorate; February 24, 


Convention of the World Meteorological Organization. 
Done at Washington October 11, 1947. Entered into 
force March 23, 1950. TIAS 2052. 

Accession deposited: Republic of Guinea, March 27. 



Agreement amending the agricultural commodities agree- 
ment of June 30, 1958 (TIAS 4105). Effected by ex- 
changes of notes at Quito February 16, 23, and 27 and 
March 9, 1959. Entered into force March 9, 1959. 


Agreement on German external debts. Signed at London 
February 27, 1953. Entered into force September 16. 
1953 (TIAS 2792). 

Notification by Netherlands of extension to: Surinam 
March 3, 1959. 


Parcel post agreement and regulations of execution. 
Signed at Lisbon January 12, 1959, and at Washington 
February 27, 1959. Enters into force on a date to be 
mutually settled between the postal administrations of 
the two countries. 


Agreement relating to investment guaranties under sec- 
tion 413(b)(3) of Mutual Security Act of 1954 (68 
Stat. 847; 22 U.S.C. 1933). Effected by exchange of 
notes at Khartoum March 17, 1959. Entered into force 
March 17, 1959. 

Post at Yaounde, Cameroun 
Raised to Consulate General 

The Department of State announced on April 6 (press 
release 250) that the American Consulate at Yaounde, 
Cameroun, which was opened in June 1957, will be ele- 
vated to a Consulate General April 10. Yaounde is the 
capital of Cameroun, a U.N. territory under French ad- 
ministration, which is scheduled to gain its independence 
on January 1, 1960. 

Bolard More will be Consul General at Yaounde and Is 
scheduled to arrive at the post on July 18. 


Department of State Bulletin 

April 27, 1959 


Vol. XL, No. 103S 

Atomic Energy. Soviet Diplomacy: A Challenge 
to Freedom (Wilcox) 590 

Aviation. U.S. Note on Japan and Baltic Sea Plane 
Incidents Sent to Soviets (texts of U.S. and 
Soviet notes) 597 

Cameroun. Post at Yaounde, Cameroun, Baised to 
Consulate General 614 

Canada. U.S. and Canadian National Libraries Ex- 
change Gifts of Research Materials 589 

Communism. The Challenge of Soviet Power 

(Allen W. Dulles) 583 

Congress, The 

Congressional Documents Relating to Foreign 

Policy 601 

Department Opposes Quotas on Fluorspar (Mann) . 600 
Senate Approval Sought for Treaty With Sul- 
tanate of Muscat and Oman (Beale) 599 

Department and Foreign Service. Post at 
Yaounde, Cameroun, Raised to Consulate Gen-, 
eral 614 

Economic Affairs 

The Challenge of Soviet Power (Allen W. Dulles) . 583 
Department Opposes Quotas on Fluorspar (Mann) . 600 


The Importance of Understanding (Eisenhower) . 579 
Soviet Diplomacy: A Challenge to Freedom 

(Wilcox) 590 

Health, Education, and Welfare. World Health 
Day (Eisenhower) 596 

Iceland. U.S. Makes Loan to Iceland for Hydro- 
electric Project 598 

International Information. U.S. and Canadian 
National Libraries Exchange Gifts of Research 
Materials 589 

Japan. The Importance of Understanding (Eisen- 
hower) 579 

Jordan. Development Loan 598 

Korea. Development Loan 598 

Military Affairs. U.S. Note on Japan and Baltic 
Sea Plane Incidents Sent to Soviets (texts of U.S. 
and Soviet notes) 597 

Muscat and Oman. Senate Approval Sought for 
Treaty With Sultanate of Muscat and Oman 
(Beale) 599 

Mutual Security 

Development Loans (Korea, Jordan, Nigeria, PalJ- 

istan, Uruguay, Thailand) 598 

The Importance of Understanding (Eisenhower) . 579 
U.S. Makes Loan to Iceland for Hydroelectric 

Project 598 

Nigeria. Development Loan 598 

Pakistan. Development Loan 598 

Presidential Documents 

The Importance of Understanding 579' 

World Health Day 596 

Southeast Asia Treaty Organization 

Fifth Meeting of the Council of the Southeast Asia 
Treaty Organization (Dillon, text of final com- 
munique) 602 

Report on SEATO, 1958-59 (Pote Sarasin) . . . 605 

Thailand. Development Loan 598- 

Treaty Information 

Current Actions 614 

Senate Approval Sought for Treaty With Sultanate 
of Muscat and Oman (Beale) 599 


The Challenge of Soviet Power (Allen W. Dulles) . 583 
Soviet Diplomacy : A Challenge to Freedom (Wil- 
cox) 590 

U.S. Note on Japan and Baltic Sea Plane Incidents 
Sent to Soviets (texts of U.S. and Soviet notes) . 597 

Uruguay. Development Loan 598 

Viet-Nam. The Importance of Understanding 

(Eisenhower) 579 

Name Index 

Beale, W. T. M 599 

Dillon, Douglas 602 

Dulles, Allen W 583 

Eisenhower, President 579, 596 

Mann, Thomas C 600 

Pote Sarasin 605 

Wilcox, Francis O 590 

Check List of Department of State 
Press Releases: April 6-12 

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


Educational exchange (Brazil). 

Conference of U.S. Ambassadors in 
Caribbean area. 

Note to U.S.S.R. on Baltic and Japan 
seas incidents. 

Post at Yaounde, Cameroun, raised to 
consulate general (rewrite). 

Beale : treaty with Sultanate of Mus- 
cat and Oman. 

Palmer: Cherry Blossom Festival. 

Wilcox: "Soviet Diplomacy: A Chal- 
lenge to Freedom." 

Mann: Fluorspar Production Act. 

DLF loan to Korea (rewrite). 

DLF loans in Jordan, Nigeria, Paki- 
stan, and Uruguay (rewrite). 

Loan to Iceland. 

DLF loan to Thailand (rewrite). 

SEATO communique. 

*Not printed. 

tHeld for a later Issue of the Bulletin. 




















muc LfBRARY 


^'i <%^ ^vi 





»7, mss 

Government kkimiii>.v^ >,. . 


Washington 25, D.C. 








April 4, 1959, marked the 10th anniversary of the signing of 
the North Atlantic Treaty, which links the United States with 
14 other free nations for our mutual security and progi'ess. 

This new Department of State publication, prepared in con- 
junction with the anniversary observance, describes the aims and 
achievements of NATO in its first decade of existence. 

The colorful 44-page pamphlet, prefaced by a message from 
President Eisenhower, contains a series of questions and answers 
on NATO's purpose, organization, financing, and relationship to 
other international organizations of the free world. The pub- 
lication is illustrated with drawings and with an organization 

Copies may be purchased from the Superintendent of Docu- 
ments, U.S. Government Printing Office, Washington 25, D.C, 
for 25 cents each. 

Publication 6783 

25 cents 

Order Form 

Supt of Documents 
Oovt. Printing Office 
Wntihinffton 2."), V.V. 

f.Hclosed find: 

{eush , check, or jnoney 
order payable to 
Hapt.of Dncx.) 

Please send me copies of NATO, 1949-1959, THE FIRST TEN YEARS 


Street Address : 

City, Zone, and State: 





Vol. XL, No. 1036 \ "^^"^ 121959^ May 4, 1959 

.8. P, L, 


President Eisenhower o20 


Address by Vice President Nixon 622 


by Deputy Under Secretary Murphy 628 

by Under Secretary Dillon 638 




For index see inside back cover 


Vol. XL, No. 1036 • Publication 6814 
May 4, 1959 

Foi sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26, D.C. 


62 issues, domestic $8.60, foreign $12.25 

Single copy, 26 cents 

The printing of this publication has been 
approved by the Director of the Bureau of 
the Budget (January 20, 1958). 
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 

Th^ Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, 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 currentlyl 

President Eisenhower Accepts Resignation of Secretary Dulles 

Following is an exchange of letters ietween 
President Eisenhower and Secretary Dulles, re- 
leased iy the White House at Augusta, Ga., on 
April 16, in which the President accepted Mr. 
Dulles^ resignation as Secretary of State. 

President Eisenhower to Secretary Dulles 

April 16, 1959 

Dear Foster: I accept with deepest personal 
regret and only because I have no alternative, 
your resignation as Secretary of State, effective 
upon the qualification of your successor. 

In so doing, I can but repeat what the vast out- 
pouring of affection and admiration from the en- 
tire free world has told you. You have, with the 
talents you so abundantly possess and with your 
exemplary integi'ity of character, employed your 
rich heritage as well as your unique experience in 
handling our relations with other countries. You 
have been a staunch bulwark of our nation against 
the machinations of Imperialistic Communism. 
You have won to the side of the free world coimt- 
less peoples, and insjiired in them renewed cour- 
age and determination to fight for freedom and 
principle. As a statesman of world stature you 
have set a record in the stewardship of our foreign 
relations that stands clear and strong for all to 

By this letter I request you to serve in the fu- 
ture, to whatever extent your health will permit, 
as a consultant to me and the State Department 
in international affairs. I know that all Ameri- 
cans join me in the fervent hope that you will 
thus be able to continue the important contribu- 
tions that only you can make toward a just peace 
in the world. 

With affectionate regard. 
As ever, 


John Foster Dulles 
Secretary of State, January 1953-April 1959 

Secretary Dulles to President Eisenhower 

April 15, 1959 
Dear Mr. President : It is apparent to me that 
I shall not be well enough soon enough to continue 
to serve as Secretary of State. Accordingly, I 
tender my resignation to be effective at your 

I am deeply grateful for the opportunities and 
I'esponsibilities you have given me. 

I was brought up in the belief that this nation 
of ours was not merely a self-serving society but 
was founded with a mission to help build a world 
where liberty and justice would prevail. Today 

May 4, 7959 


that concept faces a formidable and ruthless chal- 
lenge from International Communism. This has 
made it manifestly difficult to adhere steadfastly 
to our national idealism and national mission and 
at the same time avoid the awful catastrophe of 
war. You have given inspiring leadership in this 
essential task and it has been a deep satisfaction 
to me to have been intimately associated with you 
in these matters. 

If I can, in a more limited capacity, continue to 
serve, I shall be happy to do so. 
Faithfully yours, 

John Foster Dtjlles 

Confidence in the Continuing Growth 
and Strength of America 

Remarks hy President Eisenhower ^ 

This is the seventh time that I have had the 
honor of meeting with this group. Always before 
I have spoken extemporaneously, but I thought as 
a change of pace that it might be a good idea to 
take the results of some of my Augusta contem- 
plation and put it on paper and therefore address 
you from notes. 

First of all, of course, it is a great privilege to 
welcome you back to Wasliington, and once again 
you have my sincere thanks for the significant con- 
tributions you have made in developing a better 
public understanding of the important issues that 
confront our Nation. 

I am especially grateful for your response to 
the serious economic challenge we experienced 
during the past year. Each of you will recall that 
when you were meeting here last May we were 
still at a very low point in the recent recession. 
Production was oif, miemployment was up, and 
pessimistic voices were loud in the land. 

Although the basic soundness of our economy 
was not in jeopardy, there was a danger that the 
prophets of doom might undermine confidence to 
the point where normal recovery would be un- 
necessarily and seriously retarded. It was per- 

' Made before the 1959 Washington Conference of the 
Advertising Council at Washington, D.C., on Apr. 13 
(White House press release). 

fectly possible for us to talk ourselves into far 
worse circumstances than we actually were. 

"Confidence Campaign" 

Obviously many of you recognized tliis possi- 
bility. Even before I met with you last year you 
had launched your now-famous "confidence cam- 
paign," designed to put all the talk about reces- 
sion back into a proper perspective. 

This "confidence campaign" was a material 
factor influencing the recovery movement that 
started last summer. Many other specific factors 
of course played a part in bringing about the up- 
turn. But tliis matter of confidence — of morale — 
is fundamental to any hiunan activity. 

Without confidence, constructive action is diffi- 
cult — often impossible. With it, miracles can be 

So I know you are all pleased to see the gains 
that recovery continues to chalk up. Total em- 
jjloyment in March tliis year stood at nearly 64 
million — a million above February, and a million 
and a half above a year ago. Unemployment at 
the end of Marcli stood at 4,362,000— a drop of 
about 400,000 from the February total. We have 
every reason to believe that this trend will con- 
tinue. Personal incomes are setting records each 
month, and the gross national product is now run- 
ning at an alltime high of $464 billion a year. 
And what is vitally important — we have been 
making this recoveiy while maintaining the 
somidness and honesty of our dollar! The con- 
sumer price index has held steady for nearly a 
year, which means that the recovery figures are 
genuine gains in actual buying power and goods 

We have made a fine start, and all the hard 
work we've done so far has paid off in stability. 
But we can't afford to relax for a single minute. 

Some have told me that I am too concerned 
about this problem of inflation because for several 
months the indices have been reasonably steady. 
They forget that it is too late to repair a leaky 
roof when the rain is pouring down. This is ex- 
actly the time to think about inflation, because 
we can be certain that the problem will return to 
beset us. Only the most persistent counterpres- 
sures will keep prices where they belong. As 
usual the Advertising Council has anticipated the 
need, and you are well under way on your sound- 


Department of Sfafe Buf/efi'n 

dollar campaign. I congi-atulate you on your 
foresiglit and wisli you every success on this latest 
of youi" important undertakings. 

Building for the Future 

Turning to the international situation, I note 
that Mr. Herter has just given you a briefing on 
this subject; so my own remarks will be short. 
But I would like to leave with you this thought : 

We are up against a problem that has no fixed 
or definitely foreseeable termination. As long as 
the Communists insist that their aim is to domi- 
nate the world, we have no clioice but to adopt 
measures that will prevent this from happening. 
So we follow the only sound course open to us. 
We hold up a militai-y shield and from beliind that 
shield we strive to build a world that is decent, a 
world that is rewarding to people. 

If we can do this indefinitely, as to time — and 
confidently throughout the free world — then the 
Communist threat will tend gradually to shrink 
because the possibility of growth will be denied 
to it. Kemember, two-tliirds of the world's people 
and the great preponderance of its pi'oductive 
resources are on our side of the Iron Curtain. The 
need of America, of the free world, is to develop 
this great unrealized potential for peace, justice, 
and freedom. 

This is going to take a long time. The vital re- 
quirement is not by any means exclusively a mat- 
ter of militaiy strength ; the free nations urgently 
need economic growth and the free communication 
of ideas. The mainspring of this effort will be 
our American economy with our body of progres- 
sive traditions, knowledge, and beliefs. 

We are challenged to prove that any nation, 
wherever it is, whatever its strength, can prosper 
in freedom, that slavery is not necessary to eco- 
nomic growth even in the atmosphere of a cold 
war of conflicting ideologies. We will have to 
show that people need not choose between fi-eedom 
and bread ; they can earn both through their own 
efforts. We must prove to other peoples what we 
have already proved to ourselves : that in provid- 
ing for man's material needs private enterprise is 
infinitely superior to Communist state capitalism. 

America must demonstrate to the world, even 
under the conditions of a global struggle, that 
personal liberty and national independence are 
not only cherished dreams; they are workable 
political concepts. Broadly stated, the test before 
us is an exercise in living — living in the presence 
of danger. We can recognize the danger, in po- 
tential aggression, and provide against it. But 
security is only one of the requirements of society. 
Our ability to go on existing as a free nation is 
the product of several factors, all interdependent. 
For example, such matters as solvency and secu- 
rity are natural complements in a free society. 
Over the long term we either provide for both or 
we will discover that we have provided for neither. 

This is why it is so important that we do not 
become unhinged by tension and by crises; why 
we have such a direct concern in the long-range 
results of our educational process in the Nation ; 
why we should concern ourselves with the trade 
problems of other free coimtries. This is why a 
stable dollar and a sound fiscal policy are so 
essential. Orderly, meaningful economic expan- 
sion cannot take place if inflation rots away the 
value represented in loans, insurance, pensions, 
and personal savings. 

Economic expansion is an absolute necessity if 
we are to find jobs for our growing labor force, 
meet the Communist economic challenge, and pay 
for our costly armaments. Always we must act in 
the concept that we are building for the future — 
for the world of our children and tliose who come 
after them. We are the trustees of an ancient and 
noble inheritance which embodies the conviction 
of our forefathers that all men are endowed by 
their Creator with certain rights, rights that spell 
human dignity. We owe to those who will come 
after us the most responsible stewardship of these 
priceless values that we know how to provide. 

So it is that we need a continuing "confidence 
campaign" — one to be practiced by all who believe 
in America. We need people who can look beyond 
today's tensions and tomorrow's troubles to see us 
as we really are : a powerful, peaceful nation, in 
whose continued growth and strength are found 
the one great hope of the world. 

May 4, 1959 


Developing the Rule of Law for the Settlement 
of International Disputes 

Address hy Vice President Nixon- 

An invitation to address this distinguished 
audience is one of the most flattering and challeng- 
ing a man in my j^osition could receive. 

Flattering because the very name of this organi- 
zation at least implies that the profession which I 
am proud to represent can properly be described 
as a science rather than by some of the far less 
complimentary terms usually reserved for politics 
and politicians. 

And challenging because I realize that an 
Academy of Political Science expects a speech of 
academic character. I hasten to add, however, if 
it is proper to quote a Princeton man at a Columbia 
gathering, that in using the term "academic" I 
share Woodrow Wilson's disapproval of the usual 
connotation attached to that word. Speaking on 
December 28, 1918, in London's Guildhall he said : 
"When this war began a league of nations was 
thought of as one of those things that it was right 
to characterize by a name which, as a university 
luan, I have always resented. It was said to be 
academic, as if that in itself were a condemnation, 
something tliat men could think about but never 

In my view the primary function of the practic- 
ing politician and of the political scientist is to 
find ways and means for people to get those things 
they tliink about; to make the impractical prac- 
tical ; to put idealism into action. 

It is in that spirit that I ask you to analyze 
with me tonight the most difficult problem con- 
fronting our society today. It is, as I am sure we 
will all agree, the simple but overriding question 

' Made before the Academy of Political Science at New 
York, N.Y., on Apr. 13. 

of the survival of our civilization. Because, while 
none of us would downgrade the importance of 
such challenging problems as the control of in- 
flation, economic growth, civil rights, urban re- 
development, we all know that the most perfect 
solutions of any of our domestic problems will 
make no difference at all if we are not around to 
enjoy them. 

Perhaps at no time in the course of history have 
so many jieople been so sorely troubled by the 
times and dismayed by the prospects of the future. 
The almost unbelievably destructive power of 
modern weapons should be enough to raise grave 
doubts as to mankind's ability to survive even wei-e 
we living in a world in which traditional patterns 
of international conduct were being followed by 
the major nations. But the threat to our survival 
is frighteningly multiplied when we take into 
account the fact that these weapons are in the 
hands of the unpredictable leaders of the Com- 
munist world as well as those of the free world. 

What is the way out of this 20th-century human 
dilemma ? For the immediate threat posed by the 
provocative Soviet tactics in Berlin, I believe that 
to avoid the ultimate disaster of atomic war on one 
hand, or the slow death of surrender on the other, 
we must continue steadfastly on the course now 
pursued by the President and the Secretary of 

In the record of American policy, as it has un- 
folded since the time of Korea, our national re- 
solves to stand firm against Conununist aggression 
are clearly revealed. This has particularly been 
the case since the policy of containment matured 
into the policy of deterrence. In the recurrent 


Departmenf of State Bulletin 

post-Korean crises of the Formosa Straits, the 
Middle East, and now Berlin, the President and 
Mr. Dulles have given the Soviet leaders no pos- 
sible cause to misconstrue the American intent. 

I believe moreover that the Soviet leaders are 
equally on notice that regardless of which political 
party holds power in AVashington these policies 
of resolute adherence to our principles, our com- 
mitments, and our obligations will prevail. I si^e- 
cifically want to pay tribute to members of the 
Democratic Party in the Congress for putting 
statesmanship above partisanship by making this 
clearly evident in the developing situation of 

We can also take confidence in the fact that at 
this moment the United States possesses military 
power fully adequate to sustain its policies, and 
I am certain that whatever is necessary to keep 
this balance in favor of the free nations and the 
ideals of freedom will be done, by this administra- 
tion and by its successors regardless of which 
political party may be in power. 

What this posture of resolute national imity 
taken alone must mean in the end, however, is 
simply an indefinite preservation of the balance of 

We all recognize that this is not enough. Even 
though our dedication to strength will reduce 
sharply the chances of war by deliberate overt act, 
as long as the rule of force retains its paramount 
position as the final arbiter of international dis- 
putes there will ever remain the possibility of war 
by miscalculation. If this sword of annihilation 
is ever to be removed from its precarious balance 
over the head of all mankind, some more positive 
courses of action than massive military deterrence 
must somehow be found. 

Alternatives to Force 

It is an understandable temptation for public 
men to suggest that some "bold new program" will 
resolve the human dilemma — that more missiles, 
more aid, more trade, more exchange, or more 
meetings at the summit will magically solve the 
world's difficulties. 

The proposals that I will suggest tonight are 
not offered as a panacea for the world's ills. In 
fact the practice of suggesting that any one pro- 
gram, whatever its merit, can automatically solve 
the world's problems is not only unrealistic but, 

considering the kind of opponent who faces us 
across the world today, actually can do more harm 
than good in that it tends to minimize the scope and 
gravity of the problems with which we are con- 
fronted by suggesting that there may be one easy 
answer. But while there is no simple solution for 
the problems we face, we must constantly search 
for new practical alternatives to the use of force 
as a means of settling disputes between nations. 

Men face essentially similar problems of dis- 
agreement and resort to force in their personal 
and community lives as nations now do in the di- 
vided world. And, historically, man has found 
only one effective way to cope with this aspect of 
human nature — the rule of law. 

More and more the leaders of the West have 
come to the conclusion that the rule of law 
must somehow be established to provide a way of 
settling disputes among nations as it does among 
individuals. But the trouble has been that as yet 
we have been unable to find practical methods of 
implementing this idea. Is this one of these things 
that men can think about but cannot get ? 

Let us see what a man who had one of the most 
brilliant political and legal minds in the Nation's 
history had to say in this regard. Commenting on 
some of the problems of international organization 
the late Senator Robert Taf t said : 

I do not see how we can hope to secure permanent peace 
in the world except by establishing law between nations 
and equal justice under law. It may be a long hard 
course but I believe that the public opinion of the world 
can be led along that course, so that the time will come 
when that public opinion will support the decision of any 
reasonable impartial tribunal based on justice. 

We can also be encouraged by developments that 
have occurred in this field in just the past 2 years. 

Not surprisingly the movement to advance the 
x-ule of law has gained most of its momentum 
among lawyers. Mr. Charles Rhyne, a recent 
president of the American Bar Association, de- 
clared in a speech to a group of associates in 
Boston a few weeks ago that there is "an idea on 
the march" in the world. He was referring to the 
idea that ultimately the rule of law must replace 
the balance of terror as the paramount factor in 
the affairs of men. 

At the time of the grand meeting of the Amer- 
ican Bar Association in London in July 1957, 
speaker after speaker at this meeting — the Chief 
Justice of the United States, the Lord Chancellor 
of Great Britain, the Attorney General of the 

May 4, 1959 


United States, and Sir Winston Churchill — elo- 
quently testified that the law must be made para- 
mount in world affairs. 

Aji adviser to the President, Mr. Arthur Lar- 
son, left the Wliite House staff to establish a 
World Eule of Law Center at Duke University. 

One hundred and eighty-five representatives 
of the legal professions of many nations of earth 
met in New Delhi last January and agreed that 
there are basic universal principles on which 
lawyers of the free world can agree. 

A year ago, through the activity of the Bar As- 
sociation and by proclamation of the President, 
May 1 — the Communist May Day — became Law 
Day in the United States.^ The Bar Association 
stimulated more than 20,000 meetings over the 
country on the first Law Day. In a few weeks this 
tribute to an advancing idea will be repeated on a 
far greater scale. 

President Eisenhower, you will recall, said in 
his state of the Union message last January : ^ 

It is my purpose to intensify efforts during tlie coming 
2 years ... to the end that the rule of law may replace 
the rule of force in the affairs of nations. Measures 
toward this end will be proposed later, including reexam- 
ination of our own relation to the International Court of 

I am now convinced, and in this I reflect the 
steadfast purpose of the President and the whole- 
hearted support of the Secretary of State and the 
Attorney General, that the time has now come to 
take the initiative in the direction of establishment 
of the rule of law in the world to replace the rule 
of force. 

Fuller Use of International Court 

Under the charter of the United Nations and 
the statute of the International Court of Justice, 
institutions for the peaceful composing of differ- 
ences among nations and for lawgiving exist in the 
international community. Our primary problem 
today is not the creation of new international in- 
stitutions but the fuller and more fruitful use of 
the institutions we already possess. 

The International Court of Justice is a case in 
point. Its relative lack of judicial business— in its 
12-year history an average of only two cases a year 

" For text of the proclamation, see Bui,letin of Feb. 24, 
1958, p. 293. 

' Ibid., Jan. 26, 1959, p. 115. 

have come before the tribunal of 15 outstanding 
international jurists — underlines the untried po- 
tentialities of this Court. Wliile it would be 
foolish to suppose that litigation before the Court 
is the answer to all the world's problems, this 
method of settling disputes could profitably be 
employed in a wider range of cases than is pres- 
ently done. 

As the President indicated in his state of the 
Union message, it is time for the United States to 
reexamine its own position with regard to the 
Court. Clearly all disputes regarding domestic 
matters must remain permanently witliin the 
jurisdiction of our own courts. Only matters 
which are essentially international in character 
should be referred to the International Com't. 
But the United States reserved the right to deter- 
mine unilaterally whether the subject matter of a 
particular dispute is within the domestic jurisdic- 
tion of the United States and is therefore ex- 
cluded from the jurisdiction of the Court. As a 
result of this position on our part, other nations 
have adopted similar reservations. This is one of 
the major reasons for the lack of judicial business 
before the Court. 

To remedy this situation the administration 
will shortly submit to the Congress recommenda- 
tions for modifying this reservation. It is our 
hope that, by our taking the initiative in this way, 
other covmtries may be persuaded to accept and 
agree to a wider jurisdiction of the International 

Settling Economic Disputes 

There is one class of disputes between nations 
whicJi, in the past, has been one of the primary 
causes of war. These economic disputes assume 
major importance today at a time when the cold 
war may be shifting its major front from politics 
and ideology to the so-called "ruble war" for the 
trade and the development of new and neutral 

As far as international trade is concerned, an 
imposing structure of international agreements 
already exists. More complex and urgent than 
trade, as such, is the area of international invest- 
ment. For in this area will be determined one of 
the most burning issues of our times — whether the 
economic development of new nations, so essential 
to their growth in political self-confidence and 


Department of State Bulletin 

successful self-government, will be accomplished 
peacefully or violently, swiftly or wastefuUy, in 
freedom or in regimentation and terror. 

We must begin by recognizing that the task of 
providing the necessary capital for investment in 
underdeveloped countries is a job too big for mere 
government money. Only private money, pri- 
vately managed, can do it right in many sectors 
of needed development. And private investment 
requires a soimd and reliable framework of laws 
in which to work. 

Economic development, involving as it does so 
many lawyers and so many private investors, will 
tend to spread and promote more civilized legal 
systems wherever it goes. Already, in its effort 
to encourage United States private investment 
abroad, the United States Government has nego- 
tiated treaties of commerce with 17 nations since 
1946, tax conventions with 21 nations, and special 
investment guarantee agreements under the Mu- 
tual Security Act with 40 nations. A host of 
other special arrangements are in effect, such as 
those under which we have helped 6 nations draft 
better domestic legislation relating to foreign 

Wliat has been done is for the most part good, 
but there are several areas where additional ac- 
tion is called for. The countries that need eco- 
nomic development most are too often least likely 
to have the kind of laws, government, and climate 
that will attract investment. The political risks 
of expropriation and inconvertibility against 
which the International Cooperation Administra- 
tion presently sells insurance are not the only po- 
litical risks that investors fear. Three United 
States Government commissions, as well as nu- 
merous private experts, have recently recom- 
mended a variety of improvements in our ma- 
cliinery for fostering foreign investment. 

I select three for particular endorsement. Our 
laws should permit the establislmient of foreign- 
business corporations meriting special tax treat- 
ment, so that their foreign earnings can be rein- 
vested abi-oad free of United States tax imtil the 
United States investor actually receives his re- 
ward. In addition more tax treaties should be 
speedily negotiated to permit "tax sparing" and 
other reciprocal encouragements to investors. 
The ICA guarantee program should be extended 
to include such risks as revolution and civil strife. 
Finally, a concerted effort should be made to ex- 

tend our whole treaty and guarantee system into 
more countries, especially those in most need of 

The great adventure of economic development 
through a worldwide expansion of private invest- 
ment is boimd to develop many new forms and 
channels of cooperation between governments and 
between individuals of different nations. We 
need not fear this adventure; indeed we should 
welcome it. For if it sufficiently engages the 
imagination and public spirit of the legal profes- 
sion and others who influence public opinion, it 
must be accompanied by the discovery or redis- 
covery, in countries old and new, of the legal 
principles and the respect for substantive law on 
which wealth and freedom alike are grounded. 

Thei'e are encouraging signs at least that we 
are on the threshold of real progress toward cre- 
ating more effective international law for the set- 
tlement of economic disputes between individuals 
and between nations. 

Question of Interpretation of Agreements 

Turning to the jiolitical area, we have now 
come far enough along in the great historic con- 
flict between the free nations and the Coimnunist 
bloc to know that negotiation and discussion alone 
will not necessarily resolve the fundamental is- 
sues between us. This has proved to be the case 
whether the negotiations took place through the 
very helpful processes of the United Nations or 
at the conference table of foreign ministere or 
even at what we now call the summit. 

Wliat emerges, eventually, from these meetings 
at the confei-ence table are agreements. We have 
made a great many agreements with the Soviet 
leaders from the time of Yalta and Potsdam. A 
major missing element in our agreements with the 
Soviet leaders has been any provision as to how 
disputes about the meaning of the agreements in 
connection with their implementation could be 

Looking back at the first summit conference at 
Geneva, for example, we find that it produced an 
agreement, signed by the Soviet leaders, which 
elevated the hopes of the entire world. It should 
be noted, however, that the President and the 
Secretary of State repeatedly warned both before 
and after the holding of the conference that suc- 
cess could be measured only in deeds. One of 
the announced purposes of the conference was to 

May 4, J 959 


test the Soviet sincerity by the standard of per- 

Tlie summit conference has since been charac- 
terized by some as a failure, but in terms of agree- 
ments, as such, it was a success. 

Let me quote briefly from that agreement : ^ 

The Heads of Government, recognizing their common 
responsibility for the settlement of the German question 
and the re-unification of Germany, have agreed that the 
settlement of the German question and the re-unification 
of Germany by means of free elections shall be car- 
ried out in conformity with the national interests of 
the German people and the interests of European se- 

In other words, those who participated in the 
conference, including Mr. Khrushchev, agreed at 
Geneva on a sound method for dealing with the 
German problem — the very same problem from 
which he has now fathered the new crisis at Ber- 
lin. But while the agreement seemed clear, as 
events subsequently developed Mr. Khrushchev's 
understanding of its meaning was ostensibly dif- 
ferent from ours. 

The crucial question remained : How was the 
agreement to be effective when the parties dis- 
agreed as to what it meant? This is typical of 
a problem that can arise wherever any agreement 
is entered into between nations. 

In looking to the future what practical steps 
can we take to meet this problem? I will not 
even suggest to you that there is any simple an- 
swer to this question. For obviously there can 
be none. But I do believe there is a significant 
step we can take toward finding an answer. 

We should take the initiative in urging that in 
future agreements provisions be included to the 
effect: (1) that disputes which may arise as to 
the interpretation of the agreement should be 
submitted to the International Court of Justice 
at The Hague; and (2) that the nations signing 
the agreement should be bound by the decision 
of the Court in such cases. 

Such provisions will, of course, still leave us 
with many formidable questions involving our 
relationships with the Communist nations in those 
cases where they ignore an agreement completely 
apart from its interpretation. But I believe tliis 
would be a major step forward in developing a 
rule of law for the settlement of political disputes 
between nations and in the direction all free men 

hope to pursue. If there is no provision for set- 
tling disputes as to what an international agree- 
ment means and one nation is acting in bad faith, 
the agreement has relatively little significance. 
In the absence of such a provision an agreement 
can be flagrantly nullified by a nation acting in 
bad faith whenever it determines it is convenient 
to do so. 

While this proposal has not yet been adopted as 
the official United States position, I have dis- 
cussed it at length with Attorney General Rogers 
and with officials of the State Department and on 
the basis of these discussions I am convinced that 
it has merit and should be given serious con- 
sideration in the future. 

The International Court of Justice is not a 
Western instrumentality. It is a duly constituted 
body under the United Nations Charter and has 
been recognized and established by the Soviet 
Union along with the other signatories to the 
charter. There is no valid reason why the Soviets 
should not be willing to join with the nations of 
the free world in taking this step in the direction 
of submitting differences with regard to interpre- 
tation of agreements between nations to a duly 
established international court and thereby fur- 
ther the day when the rule of law will become a 
reality in the relations between nations. 

And, on our part, as Secretary Dulles said in 
his speech before the New York State Bar Associ- 
ation on January 31 : '' 

Those nations which do have common standards should, 
by their conduct and example, advance the rule of law 
by submitting their disputes to the International Court of 
Justice, or to some other international tribunal upon 
which they can agree. 

We should be prepared to show the world by 
our example that the rule of law, even in the most 
trying circumstances, is the one system which all 
free men of good will must support. 

In this connection it should be noted that at the 
present time in our own country our sj'stem of 
law and justice has come under special scrutiny, 
as it often has before in periods when we have 
been engaged in working out basic social relation- 
ships through due process of law. It is certainly 
proper for any of us to disagree with an opinion 
of a court or courts. But all Americans owe it to 
the most fundamental propositions of our way of 
life to take the greatest care in making certain 

* For text, see ihid., Aug. 1, 1955, p. 176. 

'lUd., Feb. 23, 1959, p. 255. 

Department of Stale Bulletin 

that our criticisms of court decisions do not be- 
come attacks on the institution of the court itself. 

Making Peaceful Competition Possible 

Mr. Khrushchev has proclaimed time and again 
that he and his associates in tlae Kremlin, to say 
nothing of the Soviet peoples, desire only a fair 
competition to test which system, conmiunism or 
free capitalism, can better meet the legitimate 
aspirations of mankind for a rising standard of 

Perhaps it is significant that the leaders of the 
free world do not feel obliged to so proclaim so 
often. The world knows that this is the only kind 
of competition which the free nations desire. It 
is axiomatic that free people do not go to war 
except in defense of freedom. So obviously we 
welcome this kind of talk from Mr. Khrushchev. 
We welcome a peaceful competition with the Com- 
mmiists to determine wlio can do the most for 

Mr. Khrushchev also knows, as we do, that a 
competition is not likely to remain peaceful unless 
both sides understand the rules and are willing to 
have tliem fairly enforced by an impartial umpire. 
He has pointedly reminded the world that Soviet 
troops are not in Germany to play skittles. The 
free peoples passionately wish that Mr. Khru- 
shchev's troops, as well as their own, could find it 
possible to play more skittles and less atomic war 
games. But we remind him that his troops could 
not even play skittles without rules of the game. 

If the Soviets mean this talk of peaceful compe- 
tition, then they have nothing to fear from the 
impartial rules impartially judged which will 
make such peaceful competition possible. 

The Soviet leaders claim to be acutely aware of 
the lessons of history. They are constantly quot- 
ing the past to pro^-e their contention that com- 
munism is the wave of the future. May I call to 
their attention one striking conclusion that is 
found in every page of recorded history. It is 
this: The advance of civilization, the growth of 
culture, and the perfection of all the finest quali- 
ties of mankind have all been" accompanied by 
respect for Law and justice and by the constant 
growth of the use of law in place of force. 

The barbarian, the outlaw, the bandit are sym- 
bols of a civilization that is either primitive or 
decadent. As men grow in wisdom they recog- 
nize that might does not make right, that true lib- 

erty is freedom under law, and that the arrogance 
of power is a pitiful substitute for justice and 

Hence once again we say to those in the Krem- 
lin who boast of the superiority of their system: 
Let us compete in peace, and let our course of ac- 
tion be such that the choice we offer unconnnitted 
peoples is not a choice between progress and re- 
action, between high civilization and a return to 
barbarism, between the rule of law and the rule 
of force. 

In a context of justice, of concern for the mil- 
lions of men and women who yearn for peace, of 
a constant striving to bring the wealth abounding 
in this earth to those who today languish in hun- 
ger and want — in such a context, competition be- 
tween the Commmiist world and the free world 
would indeed be meaningful. Then we could say 
without hesitation, let tlie stronger system 'wan, 
knowing that both systems would be moving in a 
direction of a world of peace, with increasing ma- 
terial prosperity serving as a foundation for a 
flowering of the human spirit. 

We could then put aside the hatred and distrust 
of the past and work for a better world. Our goal 
will be peace. Our instrument for achieving 
peace will be law and justice. Our hope will be 
that, mider these conditions, the vast energies now 
devoted to weapons of war will instead be used 
to clothe, house, and feed the entire world. This 
is the only goal worthy of our aspirations. Com- 
peting in this way, nobody will lose and mankind 
will gain. 

17th Anniversary of Bataan 

Following is the text of a message sent on 
April 8 hy President Eisenhower to President 
Carlos P. Garcia of the Repuhlic of the Philip- 
pines on the occasion of Bataan Day, April 9. 

White House (Augusta, Ga.) press release dated April 8 

On the seventeenth Anniversary of Bataan, a 
campaign of heroic memory, I extend best wishes 
to you and to the people of the Philippines on 
behalf of the people of the United States. 

The bonds of brotherhood forged in the gallant 
defense of Bataan and Corregidor are part of the 
tradition which miites our two comitries. Our 
continuing effort to defend and encourage the 
growth of democratic institutions throughout the 
world is a corollary of this tradition. In this 

May 4, 1959 


campaign, we will together press on to win the 
victory: Peace with honor and progress for 

It is a privilege to join you in commemorating 
the indomitable spirit of Bataan. 

DwiGHT D. Eisenhower 

The Problem of Berlin and Germany 

hy Deputy Under Secretary Murphy ' 

The field of American foreign policy interest 
today is vast. Those of us who have been dealing 
for a period of years with the day-to-day develop- 
ments in our international relations are perhaps 
more conscious than others of the responsibilities 
attaching to a great power position in the world. 
We find today that the developments in our own 
Western Hemisphere alone provide for more ac- 
tivity than formerly engaged our State Depart- 
ment on a worldwide basis. New nationalism and 
a surge of pent-up emotion for freedoms and 
higher living standards are sweeping the huge 
continent of Africa. That storehouse of natural 
resources and manpower provides a stadium for 
political evolution and economic progi'ess on a 
tremendous scale and at a tremendous tempo. The 
Middle East — the Fertile Crescents — with its 
proven oil deposits, which in the Iraqi-Kuwait 
area alone are four times those of the United 
States, is in a state of active political fermenta- 
tion. It is precisely in that critical area we are 
witnessing a drive by international conmaunism 
to dominate by the use of the classic methods of 
penetration and subversion. We are glad that at 
least one source of tension in that area has been 
eliminated by the happy solution of the Cyprus 
question which was brought about by the states- 
manlike action of our allies in NATO. 

The Governments of Greece, Turkey, and the 
United Kingdom deserve the congi-atulations of 
all the free world for the statesmanlike coopera- 
tion they have demonstrated in reaching a solu- 
tion to this most complex and difficult problem. 

' Address made at the Notre Dame Club of Chicago at 
Chicago, 111., on Apr. 13 (press release 264). 

They deserve particular credit because their 
achievement was brought about by the voluntary 
efforts of those directly concerned, without 
pressure or direction from outside. 

The Cypriot people themselves are now begin- 
ning work on the next task, that of translating 
into practical detail the provisions of the London 
agreement in preparation for the establislunent 
of the new Kepublic of Cypnis. Certainly all 
Americans wish success to the people of Cyprus 
in their effort to create a new state, based on the 
cooperation of different ethnic communities and 
born out of the understanding and mutual friend- 
ship of Greece, Turkey, and the United Kingdom. 

In the Far East the shadow of an aggressive 
Red China regime lies across the road of Asiatic 
progress and darkens the prospect of prosperity 
in freedom in many areas. We are at the moment 
witnesses of a further aggression against a peace- 
ful people, the brave millions of Tibet, temporary 
victims of suppression by those ambitious leaders 
in Peiping whose revolutionary devotion to ex- 
treme Marxism is both the envy and the concern 
of the more sophisticated party leadership in Mos- 
cow. Thus the souvenir of Himgary is evoked in 
the heart of Asia. Tliat this forward thrust of 
naked military power is the source of anxiety to 
peripheral countries in Asia would be obvious to 

But tonight with the carte hlanche I have been 
so kindly accorded, I thought I would take ad- 
vantage of your patience to discuss one of the im- 
mediate problems facing your Government today 
in Europe, that is, the problem of Berlin and 
Germany. As things go today Berlin is really 


Department of State Bulletin 

not far away from South Bend and Chicago. It 
is always possible that events could bring it even 
closer. And I think that every one of you Notre 
Dame alumni should have a clear-cut understand- 
ing of the issues which are involved in this partic- 
ular problem. We naturally hope for its peaceful 
and happy solution, but should our hopes be dis- 
appointed the problem could take on grave pro- 
portions which inevitably could aifect all Notre 
Dame alumni. 

Issues Involved in German Problem 

It still seems strange to some of us who have 
dealt with German problems in the past to be 
involved today, just 10 years later, in a similar 
critical situation which was very much on the 
front page during the Berlin blockade of 1948 
and the famous airlift. That difficult and ex- 
pensive incident resulted in the Paris agreement 
of 1949 ^ and confirmed Western rights of access 
to and presence in the city of Berlin. 

Wliat are those rights and why should we bother 
maintaining them ? As many of you who served 
in the armed forces in Germany at the end of 
World War II realize, those rights were earned 
and were by no means a gift from the Soviet 
Union. Allied forces and especially American 
forces overran large portions of East Germany. 
They evacuated that important territorial con- 
quest in favor of the Soviet Union within the 
context of political agreements entered into dur- 
ing the war, especially the agreement of London 
in 1944.3 

I know that it is rarely a profitable undertaking 
to look back over one's shoulder and inventory 
mistakes of the past. It is especially easy to sug- 
gest that before entering into political decisions 
about Germany during World War II we should 
have waited until our troops stopped advancing. 
Then after the defeat of Germany we should have 
concluded whatever agreements we found suitable 
with the Soviet Union. No doubt that would have 
been a profitable line of policy. If we had pursued 
it I do not doubt that the Western Allies would 
have captured the city of Berlin in addition to 
the East German territory which we did occupy 
and in that case the present crisis over Berlin 
could not have arisen. 

' Fur text, see Bulletin of July 4, 1940, p. 857. 

' For background on the meetings of the European Ad- 
visory Commission at London in 1944, see ibid., Jan. 5, 
1959, p, 5. 

It is necessary, however, to regard events of that 
period within the climate of the times. There 
was a school of thought in the hard war days of 
194.3 which feared that Allied forces would not 
succeed in moving east across the Rhine. They 
believed that Russian forces might first seize the 
Rhine and thus occupy all of Germany. There- 
fore for them a prior agreement which limited 
the Russian westward advance to the Elbe seemed 
a diplomatic achievement. It assured the West- 
ern Powers that the industry of the Ruhr and 
West Germany would not fall to the Russians. 
Looking back I suppose we could say we were sold 
short. At any rate having captured a large por- 
tion of East Germany our forces were obliged be- 
cause of the wartime political agreements to evac- 
uate. There were some wlio at the time urged 
that our troops not evacuate the large areas of 
East Germany the United States forces occupied. 
Our Government felt it had made an agreement, 
and it honored that agreement. Actually, the So- 
viet Union, whose forces had captured all of the 
city of Berlin, would not agree to our occupation 
of West Berlin until our forces had been evacu- 
ated from East Germany. 

Then in 1945 we entered into another agree- 
ment with the Soviet Union at Potsdam.^ The 
philosophy of that agreement contemplated the 
political and economic unity of Germany as a 
whole, a democratic Germany based on free elec- 
tions and removed from the taint of nazism. I 
am still curious to know why Marshal Stalin at 
Potsdam ever agreed to that text because there- 
after Soviet authorities made little or no pretense 
of carrying out its provisions. It is obvious that 
the Soviet objective after Potsdam was the domi- 
nation of all of Germany and that their thinking 
was reflected in the expression of Mr. Molotov at 
the time "as goes Germany, so goes Europe." The 
United States and its Allies faithfully endeavored 
to fulfill the obligations of the Potsdam agree- 
ment, which in itself is an estimable document. 

Berlin — Experiment in Western-Soviet Cooperation 

Berlin became a postwar proving ground for 
East- West cooperation. The experiment was not 
a success. It was of course adversely affected by 
a Soviet theory, no doubt due to the Soviet ex- 
treme need resulting from damage to the Soviet 

* md., Aug. 5, 1945, p. 153. 

May 4, 1959 


economy in World War II, that the United States 
should finance reparations from Germany and that 
the threadbare and damaged industrial plant of 
that country would be harnessed for the payment 
to the Soviet Union of billions and bDlions of 
reparations. It soon became obvious that polit- 
ically the Soviet objective was the installation in 
all of Germany of their form of democracy, which 
revolves around a single-party system controlled 
by the party apparatus at Moscow. 

As their policies, notwithstanding our efforts 
to cooperate, did not seem to offer a brilliant fu- 
ture eitlier for the German people or the Western 
Allies, the decision was taken by the Western Al- 
lies in 1947 to permit the Germans to establish 
a truly democratic and representative form of in- 
dependent government for West Germany. All 
efforts to achieve this result for the entire German 
community had foundered on the rock of Soviet 
determination to stamp upon the German people 
their special brand of controlled single-party 
counterfeit democracy. Germany was to have only 
a restricted form of sovereignty for the indefinite 
future. The able leadership in West Gennany 
with Western support and cooperation since 1947 
achieved results in the political and economic 
fields far exceeding the most optimistic estimates 
of the experts at the time. 

The contrast between the extraordinary social 
progress of postwar West Germany and the horse- 
and-buggy progress in East Germany — the drab 
and unwieldy economy of that area, the distrust 
and fear which have prevailed — is one of the great 
dramas of our day. It constitutes a crown of 
thorns for the Soviet geopoliticians. Mr. Mikoyan 
employs all the honeyed words an intelligent Ar- 
menian is capable of in describing the improving 
living conditions in East Germany and its rosy 
future in the "Socialist" camp. It is still not at- 
tractive enough to prevent thousands of East Ger- 
mans every month from seeking refuge in West 
Germany. This applies especially to professional 
elements and the inteUigentsia. As many as 200 
doctors, for example, recently fled East Germany 
in a single month. "Wlien Mr. Mikoyan sj^eaks of 
Soviet apprehension over West German intention 
to engulf East Germany, what he in fact means is 
that the Soviet Union has failed utterly to win 
over the East German population. He is con- 
cerned that a wave of public and international 
sentiment might reunite the German people. 

For some reason which is still shrouded in mys- 
tery — perhaps a desire to consolidate the Soviet 
empii-e and promote continual struggle with the 
non-Communist world — C h a i r m a n Nikita 
Khrushchev of the Soviet Council of Ministers 
last November 10 saw fit to annoimce that based 
on its rights under the Potsdam agreement the 
Soviet Union would by May 27, 1959, abandon its 
occupation rights in Berlin. It would transfer 
them to the straw government which it permits to 
function under wraps in East Germany. Some 
days later his lawyers evidently caught up with 
Mr. Khrushchev, who sent us a note on November 
27 '' omitting reference to the Potsdam agreement 
and referring instead, this time correctly, to the 
London agreement of 1944. That is the agreement 
wliicli established the present four-power occupa- 
tion of the city of Berlin. He announced in effect 
that within 6 months the Western Powers would 
be obliged on matters of access to and occupation 
of West Berlin to deal with the East German 
representatives of a so-called "German Demo- 
cratic Government" which we do not recognize. 
We do not recognize it because it does not repre- 
sent the freely expressed wishes of the East Ger- 
man population and it is not by the wildest stretch 
of the imagination an independent government. 
We do not recognize it because our ally, the Ger- 
man Federal Republic, is convinced, as we are, 
that to do so would perpetuate the division of 

TIius tlie Soviet leadership now proposes to go a 
step further in the division of Germany by sug- 
gesting that Berlin be abandoned by the West, the 
2 million courageous West Berliners left to the 
tender care of the disciples of Marxism-Leninism. 
Mr. Khrushchev would set up Berlin as a "free 
city." As far as can be ascertained, that would 
mean free from Western influence and protection. 
Thus we would have three Germanies instead of 

Now this raises an interesting point. By insist- 
ing on our rights of occupation, which really rest 
on the conquest of Germany, Mr. Khrushchev 
seeks to place us in an unfavorable light. Occupy- 
ing armies are never popular. People grow weary 
of the sight of foreigii uniforms. In provoking 
the issue of Berlin Mr. Khrushchev midoubtedly 

" For an exchange of messages between President Eisen- 
liower and Premier Khrushchev, see ibid., Jan. 19, 1959, 
p. 79. 


Deparfmenf of State Bulletin 

intends to cause the Western powers the maximum 
of embarrassment. He knows that our legal case 
rests on military occupation, and he seeks to en- 
hance the Soviet position in the eyes of Germans 
by proposing a new arrangement which would 
give Berlin a pseudoindependence removed from 
Western influence and sunk in the mire of the im- 
posed "socialism" of the surrounding area. 

But we do not rest om* presence in Berlin on 
legal technicalities alone. If the citizens of West 
Berlm were opposed to the presence of Western 
forces, including our own, the position would be 
fairly untenable no matter how solid the legal 
position. We know that this occupation is ur- 
gently desired by the people. We know it because 
of popular manifestations in many forms such as 
the municipal elections last fall. If we believed 
we were imwelcome we would be the first to want 
to leave, and the Berliners know it. 

Wlien Mr. Mikoyan visited us on vacation he 
spent some time on business and handed us an 
aide memoire ^ stating that the Soviet Union pro- 
posed convening a peace conference witliin 60 
days from that date, January 10, to conclude a 
peace treaty with East Germany. Tliat project 
seems to have withered on the vine. It aroused 
little enthusiasm anywhere. 

The term of 6 months rather lightheartedly 
flung out by Mr. Ivliiiishchev will expire on May 
27. We have since been assured by Mr. Mikoyan 
and others that regardless of the stiff language 
this was never intended as an ultimatum. I be- 
lieve that is trvie. Mr. Mikoyan stated repeatedly 
these were just proposals for negotiation and they 
wanted proposals from us. They know us well 
enough by now to understand that we do not ne- 
gotiate mider threat of ultimatum. 

Negotiations as a Method of Solution 

In the German problem as in others it is clear 
that what is past is prologue. We are on the eve 
of a series of international conferences ' which I 
believe we should welcome as an opportmiity to 
achieve results we want rather than fear entailing 
a risk of war. I start from the premise that the 

° Not printed (similar in substance to the Soviet note of 
Jan. 10, for which see ibid., Mar. 9, 1959, p. 333). 

'For an exchange of notes between the United States 
and the Soviet Union in which the United States proposes 
the time and place for a meeting of Western and Soviet 
foreign ministers, see Hid., Apr. 13, 1959, p. 507. 

Soviet leadership does not want war, and we know 
that we do not want it. I just don't believe that 
an all-out nuclear war is going to happen by sheer 
accident. Therefore we do not approach these 
negotiations weighed down by fear and apprehen- 
sion of ultimate destruction. We have not pro- 
voked the issue. We will negotiate on the merits. 
We will not run away. 

We all remember the Austrian treaty, which for 
yeai's was the cause of despair that Austrian in- 
dei^endence and relief from occupation would 
ever be achieved. Yet after 264 meetings and a 
lapse of years the clouds lifted and Austrian in- 
dependence is a fact. I mention tliis because it 
has become fashionable among some commenta- 
tors to assert that reunification of Germany is just 
not in the cards. Nobody wants it, not even the 
Germans, it is said. Mr. Khrushchev has said 
that he knows that 50 million Germans are against 
the Soviet Union now and he does not propose to 
add an additional 17 millions. Perhaps I am with 
a tiny minority in having faith that the German 
people themselves are determined — patiently, 
grimly, and courageously — to unite. Wlio can 
say that the forthcoming negotiations may not 
bring them a step closer to that goal within the 
framework of a more secure Europe? 

Whatever other reasons the Soviet leadership 
may have had for provoking the issue of Berlin 
last November, it would seem fairly obvious that 
their puqDose was to confirm the status quo in 
Eastern Europe. Their anxiety in this regard is 
understandable. They know that millions of 
Europeans are uneasy, restless, and unhappy in 
the bondage of the "Socialist" camp. The So- 
viet mania for security in depth is a bogey which 
leads them into political adventures. It para- 
lyzes their ability to let go of territory once they 
have it within their grasp. But human beings 
are not chattels. Sooner or later the intelligence 
and skill of the people find a way. At least we 
can try in these negotiations to develop a climate 
in which the Soviet chieftains could be exposed 
to the notion that it is not necessary to hold mil- 
lions of East Europeans in subjection for security 
reasons as a protection against tlie West. Just 
the other day an editor of the Moscow newspaper 
Izvesfia wrote that a more democratic press in 
the Soviet Union would give a better insight into 
the desires and necessities of the people and urged 
his feUow editors to ease up on their blue pencils. 

May 4, 1959 


This is a good sign. We look forward to the day 
when the Soviet people themselves will be re- 
lieved of that gross fiction of Western imperial- 
ism which results from deliberate misrepresenta- 
tion on the Soviet internal propaganda front. 

U.S. Rejects Soviet Curb on Flights 
in Berlin Air Corridor 

Following is an exchange of notes between the 
United States and the Soviet Union. 


Press release 265 dated April 13 

The Embassy of the United States of America 
has been instructed to reply as follows to the note 
of the Ministry of Foreign Affairs of the Union of 
Soviet Socialist Republics, No. 25/OSA, dated 
April 4, 1959 protesting the routine flight of a 
United States aircraft in the Frankfurt-Berlin air 
corridor on March 27. 

The United States Government rejects the So- 
viet contention that flights above 10,000 feet are 
precluded by regulations covering flights in the 
corridors, and that the flight of the C-130 aircraft 
in question, duly notified to the Soviet Element in 
accordance with established practice, constituted 
a violation of presently existing rules. As stated 
in letters of Jiuie 6 and September 8, 1958 ^ from 
the United States representative to the Soviet 
representative in the quadripartite Berlin Air 
Safety Center, flights by aircraft of the United 
States do not require any prior agreement from 
the Soviet Element, and the United States never 
has recognized and does not recognize any limita- 
tion to the right to fly at any altitude in the cor- 
ridors. As has been previously pointed out, the 
altitude at which aircraft fly is determined in ac- 
cordance with the meteorological conditions pre- 
vailing at the time and the operational character- 
istics of the aircraft. The Government of the 
Soviet Union, having itself put into service air- 
craft (such as the TU-104) technical character- 
istics of which require flight at higher altitudes 
than those formerly in use, will appreciate the 

^ Delivered to the Soviet Ministry of Foreign Affairs by 
the American Embassy at Moscow on Apr. 13. 
' Not printed here. 

influence of such factors on operating altitudes 
of United States aircraft. While for some time to 
come the majority of corridor flights will, under 
normal circumstances, be made below 10,000 feet, 
whenever weather or the operational characteris- 
tics of equipment require, additional flights at 
higher altitudes will be undertaken. There can 
be no doubt that improved air navigational facili- 
ties and procedures provide adequate safety for 
such flights. 

The flight by Soviet aircraft in dangerous prox- 
imity to the United States C-130 on March 27, as 
witnessed by thousands of persons in the Berlin 
area, constituted not only a serious violation of 
the flight regulations that obtain in the air corri- 
dors and the Berlin Control Zone but intentionally 
created the very hazard to flight safety about 
which the Soviet representatives have professed 

The United States Government fully appreci- 
ates the importance of safety of flight through 
the corridors and acknowledges that its maijite- 
nance is a matter of mutual interest to the Soviet 
authorities in Germany. The conditions of flight 
safety can be met if the latter will act in accord- 
ance with established procedures and separate 
their aircraft from Western flights notified to 
them. Although the right of United States air- 
craft to fly in the corridors to Berlin does not 
depend upon advance notice to or permission of 
the Soviet Element, the flight plan of the C-130 
in question was passed to the Soviet Element in 
the Berlin Air Safety Center sufficiently in ad- 
vance to provide ample time to notify aircraft 
likely to be in the vicinity as the C-130 passed 

Further, the suggestion that the Government of 
the United States of America is seeking to com- 
plicate the carrying out of the agreement which 
has been reached on holdmg a Foreign Ministers' 
Conference is not consonant with the facts of the 

On the contrary, it is the Soviet Union which 
is creating doubt as to its intentions by attempt- 
ing imilaterally to assert a "right", never recog- 
nized by the Western Powei-s, to forbid flights to 
Allied aircraft at altitudes above 10,000 feet and 
by permitting Soviet fighter aircraft to harass 
United States aircraft in a way dangerous to their 
safety and to the lives of their crews. 

The United States expects the Soviet Govern- 


Department of Stale Bulletin 

ment promptly to issue instructions to its person- 
nel in Germany to ensure fulfillment of their re- 
sponsibility for flight safety in the air corridors 
to Berlin. 


Dnofficial translation 
No. 25/OSA 

The Ministry of Porei^ Affairs of the Union of Soviet 
Socialist Republics on the instruction of the Soviet Gov- 
ernment deems it necessary to bring the following to the 
notice of the Government of the United States of America. 

On March 27 a C-130 type American transport plane, 
going from West Germany to Berlin along the air corri- 
dor lying over the territory of the German Democratic 
Republic, rose to a height of 7,000 meters, which is a 
crude violation of the existing procedure of flights along 
this route. The demonstrative character of this violation 
is evident from the very fact that the American represent- 
ative in the Berlin Air Safety Center, which regulates 
flights of foreign airplanes between BerUn and the Fed- 
eral Republic of Germany, was informed in good time by 
the Soviet .side about the inadmissibility of the flight of 
the said plane at a height of more than 3,050 meters, 
which is the maximum for flights of the Western powers 
using the air corridors. Moreover, this same airplane, 
completing on the same day a return trip from Berlin to 
West Germany, again flew at a height twice exceeding the 
usual ceiling of flights in the air corridors, although a 
protest was made by the oflScial Soviet representative to 
the U.S. representative against the violation of flight 
rules which had talien place. 

One cannot help noting that the violations by American 
planes of the existing procedure and established practice 
of flights over the territory of the German Democratic 
Republic are undertaken at that moment when agreement 
has been reached concerning the carrying out soon of 
negotiations between East and West on the question of 
Berlin and other questions having prime significance for 
the cause of peace. All this is taking place after the U.S. 
Government through its Ambassador in Moscow declared 
at the time of the transmittal of the note on the question 
of the planned negotiations that in its opinion unilateral 
actions of any Government in the period of preparation 
for the forthcoming conferences will hardly help their 
successful outcome.' Analogous statements were made 
also by the Governments of other powers which are allies 
of the United States of America in NATO. It would seem 
that after such statements the Government of the United 
States of America ought also to have acted accordingly by 
avoiding everything that could complicate the effectuation 
of the understanding about the carrying out of the 

In the light of these facts the premeditated violations 
by American planes of the existing procedure of air com- 
munications with Berlin is diflicult to evaluate otherwise 
than as an effort by the U.S. to worsen conditions for the 
meeting of Ministers of Foreign Affairs, if not in general 
to torpedo the understanding attained about the carrying 
out of negotiations between East and West. 

As for the Soviet Union, for its part not only will nothing 
be permitted which could worsen the situation on the eve 
of negotiations, but everything is being done to facilitate 
the conduct of these negotiations. It goes without saying 
that the Soviet Government has the firm intention right 
up to these negotiations to adhere to the existing procedure 
and established practice of communications along the lines 
of communication between Berlin and West Germany. 

In calling the attention of the U.S. Government to the 
dangerous character of the actions of the American author- 
ities in Germany, the Soviet Government would like to 
empha.size that the U.S. Government will bear all re- 
sponsibility for the violation of the conditions of safety 
of air flights in the airspace of the German Democratic 
Republic and the possible complications connected with 

The Soviet Government expresses the hoi)e that the U.S. 
Government will adopt measures which would exclude the 
possibility of complications of this type and will for its 
part facilitate creation of a favorable atmosphere for the 
conduct of negotiations between East and West on urgent 
international questions, the solution of which is being 
awaited by the peoples who are vitally interested in the 
preservation and strengthening of peace. 

U.S. and U.S.S.R. Agree on Exchange 
of Performing Artists 

Press release 267 dated April 16 

Department Announcement 

The Department of State announced on April 
16 the signing that day at Washington of an agree- 
ment with the Soviet Government for an exchange 
of performing artists in connection with the na- 
tional exhibitions which are to be held in Moscow 
and New York during the siumner of 1959, as part 
of the program of exchanges between the United 
Stat«s and the Soviet Union provided for in the 
U.S.-U.S.S.R. exchange agreement of January 27, 

N. N. Danilov, Deputy Minister of Culture, 
head of the Soviet cultural delegation now in this 
country, signed for the Soviet side, and Frederick 

' Statement made by Ambassador Llewellyn Thompson 
at the time of delivery of the U.S. note of Mar. 26 regarding 
the foreign ministers meeting on the problem of Germany. 
For text of note, see Bulletin of Apr. 13, 1959, p. 507. 

May 4, 1959 

608884—59 3 

' For text of agreement of Jan. 27, 1958, see BtjixETiN 
of Feb. 17, 1958, p. 243 ; for text of agreement on exchange 
of exhibitions, see ihid., Jan. 26, 1959, p. 132. 


T. Merrill, director of the East-West Contacts 
Staff, signed for the Department of State. 

Text of Agreement 


OF Soviet Sociaust Republics fob Exchange of Peb- 



In order to develop further mutual cultural exchanges 
as a means of understanding between the two countries 
and in reference to paragraph 14 of the Agreement be- 
tween the United States and the AU-Union Chamber of 
Commerce of the Union of Soviet Socialist Republics, re- 
lating to a reciprocal exchange of national exhibitions 
during the summer of 1959, the following is agreed in 
principle : 

During the summer of 1959, the performing attractions 
named below will be exchanged in connection with the 
Soviet and American national exhibits to be held at the 
Coliseum in New York, and at Sokolnlki Park in Moscow. 
The performances will take place in Moscow and New 
York respectively at approximately the time when the 
respective national exhibits are open. 

a) The Soviet side will send to New York a Concert 
Group including the Pyatnitsky Choir for a period of four 
to eight weeks. 

b) The United States side will send to Moscow the New 
York Philharmonic Orchestra for a period of three weeks 
and a Variety Show for four weeks. 

Heads of European Communities 
To Visit Wasliington 

Press release 266 dated April 16 

The Acting Secretary of State, Christian A. 
Herter, has extended invitations to the presidents 
of the Commissions of the European Economic 
Commmiity (EEC) and the European Atomic En- 
ergy Community (EURATOM), and the presi- 
dent of the High Authority of the European Coal 
and Steel Community (ECSC) for a 3-day official 
visit to Washington. 

These three presidents are the chief executives 
of the European communities established by 
France, the Federal Republic of Germany, Italy, 
the Netherlands, Belgium, and Luxembourg to 
integrate their economies. The European com- 
mmiities thus comprise a single movement having 
as their common objectives the creation of greater 
strength, economic well-being, and unity among 
the six member states. 

The three European executives are: Walter 
Hallstein of Germany, president of the EEC 

(Common Market) Commission; Etienne Hirsch 
of France, president of the EURATOM Commis- 
sion ; and Paul Finet of Belgium, president of the 
ECSC High Authority. The visit will take place 
on June 9, 10, and 11, 1959. 

U.S. Ambassadors in Caribbean Area 
Meet To Excliange Views 


Press release 248 dated April 6 

A conference of the U.S. Ambassadors in 12 
countries of the Caribbean area will be held at San 
Salvador, El Salvador, from April 9 to 11. Am- 
bassadors from U.S. missions in Colombia, Costa 
Rica, Cuba, the Dominican Republic, El Salvador, 
Guatemala, Haiti, Honduras, Mexico, Nicaragua, 
Panama, and Venezuela will attend. 

Officials of the Department of State attending 
the conference will be headed by Loy W. Hender- 
son, Deputy Under Secretary for Administration, 
and will include Roy R. Rubottom, Jr., Assistant 
Secretary for Inter- American Affairs, and Am- 
bassador John C. Dreier, U.S. Representative on 
the Council of the Organization of American 

The meeting will provide an opportunity for 
an exchange of views on current political and 
economic developments in the area in their rela- 
tion to U.S. policy. 


Press release 263 dated April 13 

United States Ambassadors to the countries of 
the Caribbean and Central America area met in 
San Salvador on April 9-11, 1959, in one of the 
series of regional conferences of United States 
Chiefs of Mission, which are designed to assist the 
Department of State in formulating and carrying 
out its policies with a full appreciation of the 
problems and aspirations which the United States 
shares with the other nations of the free world. 
Similar conferences are being held this year in 
several other areas of the world. 

The Department was represented by the Honor- 


Department of State Bulletin 

able Loy W. Henderson, Deputy Under Secretary 
of State; the Honorable Roy R. Rubottom, Jr., 
Assistant Secretary of State for Inter- American 
Affairs; and other officials concerned with Latin 
American affairs. The Chiefs of Mission attend- 
ing were the United States Ambassadors to Colom- 
bia, Costa Rica, Cuba, the Dominican Republic, 
El Salvador, Guatemala, Haiti, Honduras, Mexico, 
Nicaragua, Panama and Venezuela. The confer- 
ence devoted the major part of its attention to a 
review of United States relations with the fore- 
going countries; and the participants, drawing 
upon their knowledge of the area and on their 
pereonal experience, advanced a number of prac- 
tical suggestions for the consideration of the De- 
partment. Attention centered on the role of the 
United States, both through bilateral channels and 
as a member of the Organization of American 
States, in cooperating with other peoples of the 
area for the better achievement of commonly 
shared goals of peace with justice and political and 
economic progress. The peoples of the Western 
Hemisphere during recent years have been moving 
steadily toward a more effective exercise of repre- 
sentative democracy and respect for basic human 
rights within the principles of the OAS. The 
participants in the conference expressed the belief 
that the peoples of the Americas could take just 
pride m these developments, which are taking 
place at a time when much of the rest of the world 
is being subjected to the ruthless dictatorship of 
Communist totalitarianism, as events in Hungary 
and Tibet vividly illustrate. 

There was discussion of widely publicized re- 
ports of activities in various countries directed at 
the overthrow of the governments of other coun- 
tries in violation of the charter of the OAS and 
other inter- American agreements. The confer- 
ence observed that such reports are highly dis- 
turbing to the atmosphere of mutual trust essen- 
tial to the continued cooperation and progress of 
the nations of this hemisphere and reconmiended 
to the Department that serious consideration be 
given to how the OAS might be helpful in re- 
storing a more tranquil atmosphere in the Carib- 
bean area. 

The participants expressed their confidence that 
the United States would continue to cooperate 
closely with the other member states to support 
the objectives of the OAS in maintaining the 
peace and security of the area and in assuring to 

each country the right to develop its political life 
free from outside intervention. 

Consideration was given to the economic prob- 
lems of the Caribbean and Central America. It 
was recognized the development of sound and di- 
versified economies and the steady rise of living 
standards would be of mutual benefit to the 
peoples of this area and to the people of the 
United States. 

There was a discussion of a report presented on 
progress in economic matters made by the Ameri- 
can Republics in preparation for the April 27 
meeting of the OAS's "Committee of 21" in Buenos 
Aires where "Operation Pan America" will be 
carried forward another step. The conference 
noted the signing of the charter of the Inter- 
American Development Bank ^ as well as of the 
recent increase in the capitalization of the Export- 
Import Bank and that proposed for the World 
Bank and International Monetary Fund. The 
conference endorsed this cooperative approach to 
Western Hemisphere economic problems and ex- 
pressed the belief that the additional public funds 
made available through these institutions will ef- 
fectively complement domestic and foreign private 
capital in accelerating the economic development 
of the Caribbean and Central American area. 

Discussions were held concerning the progress 
of Latin America, and particularly in Central 
America, toward the establishment of regional 
markets. It was noted that such markets could 
spur economic development and diversify econo- 
mies. In this latter connection attention was given 
to the intention of the Government of the United 
States to assist financially, through appropriate 
agencies and in suitable conditions, the establish- 
ment of sound industries, with a view to promot- 
ing regional markets through public and private 
investment. Major attention was devoted to ef- 
forts now being made to achieve more stable 
markets for basic products of the area and as to 
how the peaks and valleys in the economies of the 
area might be eliminated. The group strongly 
endorsed the decision of the United States to par- 
ticipate in bilateral and multilateral consultations 
designed to attain this objective. 

The conference examined the problems arising 
from the intensified efforts of international com- 
munism to break down the bonds which have 
united the peoples of the Western Hemisphere 

'Seep. 646. 

May 4, 1959 


and to disrupt the progress toward economic well- 
being and representative government in the Amer- 
icas. It took particular note of the fact that, 
while the governments and peoples of the Ameri- 
can Republics were engaged in renewed eflForts to 
find cooperative solutions to American economic 
and political problems, the leaders of at least 19 
of the Commimist parties of the hemisphere met 
in Moscow after attending the 21st Congress of 
the Soviet Communist Party to confer on strategy 
and tactics to foster divisions and tensions among 
the American governments and peoples. 

Finally, the participating officials took pleas- 
ure in conveying their appreciation to the Govern- 
ment and people of El Salvador for the cordial 
hospitality extended to them, which contributed 
so greatly both to facilitate their work and to 
make their stay in San Salvador so pleasant. 

Wise Distribution of U.S. Food 
Surpluses in Latin America 

hy John M. Cabot 
Ambassador to Colombia ^ 

All men were created equal in needing food. 
All men do not need and all men do not get the 
same amount of food or indeed, in many cases, 
what they need. Some eat too much ; many more 
cannot get enough even to work efficiently. Far 
too many are hungry. 

We are fortunate in the United States in having 
a surplus of food. Most of us here are of course 
taxpayers, and the $9 billion worth of food stored 
under our agricultural stabilization programs is a 
burden on our pocketbooks. JBut we have not 
abandoned our fanners to their economic fate, 
whatever it might be ; and our agricultural meas- 
ures have helped us to provide, for our friends 
and allies such as Colombia, the food which their 
people needed and did not have. With our sur- 
plus food we have saved many from starvation, 
and we have helped many more to save themselves 
from the spiritual starvation of totalitarian 

Tyrants can indeed feed their people on propa- 

' Remarks made before the Market Development Con- 
ference of the Foreign Agricultural Service of the U.S. 
Department of Agriculture at Bogota, Colombia, on 
Apr. 1. 

ganda. It does not matter to them if their people 
starve, if, indeed, they take food from the hungry 
to export and thereby obtain foreign exchange. 
They herd them into communes for the glorifica- 
tion of the state and the abasement of the indi- 
vidual. Notably, all of the great modem tyran- 
nies have thought of guns rather than butter. It 
matters not to them if millions starve while a 
5-year plan is achieved and progress is made 
toward subjugating new peoples to their yoke. 
If they achieve statistical results, what does the 
ci-y of a hungry child mean to them ? 

It is difficult for a half-starved man to fight 
for freedom. Indeed as we accumulate agricul- 
tural surpluses we should remember that a great 
majority of humanity is more likely to wonder 
where its next meal is coming from than about 
its freedom. If the cold war is a struggle between 
two ways of life, what better demonstration can 
we give of ours than by showing that free men 
eat better than totalitarian slaves? 

In democracies the people decide what is to be 
done. We insist that the people receive the neces- 
sities of life. The food which we produce will not 
only make the free man a more efficient worker ; it 
will strengthen us physically and spiritually to 
resist those who announce frankly that they will 
bury us. Sometimes we forget that they mean just 
that, as regards both our bodies and our souls. 

Many of the people even in the free world are 
still hungry, despite eveiything that we are doing 
to feed them. The problem is not simply one of 
distributing the surpluses we have in the United 
States to correct deficiencies elsewhere. Great as 
our stocks and production capacity are in the 
United States, they are not remotely sufficient to 
fill present and future needs. We do, indeed, need 
to dispose of burdensome surpluses. Far greater, 
however, is the need to help other friendly coun- 
tries produce themselves what they need. There 
will be cases in which this will hurt our national 
production. Nevertheless, it would not help the 
free world if we disposed of our food at the cost 
of discouraging adequate food production in the 
nations to which we exported it, or of injuring the 
legitimate markets of other friendly countries. 

We must remember that a wise distribution 
of our surpluses is likely in the long run to in- 
crease both production and consumption in other 
lands. If in some cases this means that our ex- 
ports will decrease, experience has shown that in 


Department of State Bulletin 

many other cases increasing demand will outstrip 
increasing domestic supply. We should be happy 
in a prospering market if the absolute amount of 
our agricultural exports increases even though 
percentage in our share of the market drops. 

You are here primarily to discuss expanding 
the markets for our agricultural products. I be- 
lieve you will succeed primarily insofar as your 
efforts promote prosperous markets in this area. 
Latin America now buys as much commercially 
from the United States as it can finance by selling 
its products to the United States. We have seen 
in Colombia the disastrous results of buying more 
than can be sold and also how much can be bought 
if much is sold. With more mouths to feed, with 
more hands to work, witli greater prosperity and 
a will to prosperity in Latin America, there should 
be an ample market here for all that we have to 
sell, provided they can buy. We can stimulate 
demand and, incidentally, individual well-being 
in Latin America by judicious schemes for pro- 
moting the sales of our agricultural surpluses 
among our fellow Americans in our sister repub- 
lics. But the thought I would leave with you is 
that their prosperity and our prosperity are inex- 
tricably linked ; that if they feel themselves better 
off we are likely to find ourselves better off; that 
our food can not only satisfy their hunger, it can 
help to keep them and us free. 

It is in this spirit that I take the greatest 
pleasure in welcoming you here today. We are 
honored by the presence of a distinguished group 
of Senators and Kepresentatives from our Con- 
gress. I am sure your deliberations will be fruit- 
ful not only in solving immediate problems but 
also in facing the fundamental issues which today 
confront free men everywhere. 

Visit of President of Mexico 
Postponed Until Autumn 

White House (Augusta, Ga.) press release dated April IS 

President Eisenhower and the President of 
Mexico have agreed that the visit of the Mexican 
President to the United States should take place 
during the coming autimm. 

At the time that the President of Mexico, 
Adolfo Lopez Mateos, accepted President Eisen- 
hower's invitation, it was tentatively agreed that 
the visit would take place during the spring of 

this year, though the exact date and place would 
be determined through diplomatic channels. As 
a result of an exchange of views between Ihe two 
Grovernments, the Presidents have now agreed 
that the visit will be postponed to the autumn of 
this year. 

U.S. Investment Guarantee Program 
Extended to Sudan and Tunisia 

Press release 268 dated April 16 

The Department of State announced on April 
16 that the U.S. Government's investment guar- 
antee program for new private U.S. investments 
abroad is now available for investments in two 
additional countries, Sudan and Tunisia. The 
program, which is administered by the Interna- 
tional Cooperation Administration as a part of 
the U.S. mutual security program, has been made 
applicable to investments in these two countries 
by the formal exchange of notes between the Gov- 
ernment of the United States and the respective 
Governments of Sudan and Timisia. 

Both agreements emphasize the U.S. policy of 
encouraging new investments of private capital 
abroad, particularly in the newly developing 
countries. They also reflect the policies of the 
Governments of Sudan and Tunisia in encourag- 
ing the investment of private capital in develop- 
mental projects within their countries. 

Under the agreements with Sudan and Tuni- 
sia, the United States now offers three types of 
guarantees for U.S. investments in the two coun- 
tries: (1) guarantee that local currency receipts 
from investments in either country will remain 
convertible into dollars; (2) guarantee against 
losses from expropriation; and (3) guarantee 
against losses due to war damage. The U.S. Gov- 
ernment guarantees are now available for new 
U.S. investments of capital goods, services, pat- 
ents, and loans which are approved for purposes 
of ICA guarantee by the respective governments. 
For this insurance the U.S. investor will pay a 
premium of one-half of 1 percent per annum for 
each of the three types of insurance. 

With the addition of Sudan and Tunisia the 
U.S. investment guarantee program is now avail- 
able for new private investments in 40 coimtries. 
As of March 31 a total of $412 milUpn in ICA 

May 4, 1959 


guarantees had been issued for projects in coun- 
tries already participating in the program, and 
applications pending in ICA exceed $1 billion at 
the present time. 

Inquiries and applications for ICA guarantees 
should be addressed to the Investment Guaranties 
Staff, International Cooperation Administration, 
Washington 25, D.C. 


The Development Loan Fund: An Investment in Peace and Progress 

Statement hy Under Secretary Dillon ^ 

I appear before you today [March 24] both as 
Coordinator of the Mutual Security Program and 
as Chairman of the Board of Directors of the 
Development Loan Fmid. My pui-pose is to pre- 
sent the executive branch proposals for legisla- 
tion affecting the Development Loan Fund, both 
from the standpoint of overall foreign policy re- 
quirements and the operating needs of the insti- 
tution itself. 

The President has recommended that the Con- 
gress authorize and appropriate $700 million to 
become available to the Development Loan Fimd 
beginning in fiscal year 1960.^ He has also re- 
quested revisions in the Mutual Security Act 
which would make available to the Development 
Loan Fund, after administrative needs of other 
agencies are met, local currency repayments under 
mutual security loans concluded since 1954 and 
which would provide a clear and more flexible 
basis under which the DLF can work out 
arrangements for the fiscal administration of 

This committee is well aware of the economic 
and social revolution which is sweeping the less 

' Made before the House Foreign Affairs Committee on 
Mar. 24. 

' For text of the President's message to Congress on 
the 1959 mutual security program, see Bulletin of Mar. 
30, 1959, p. 427. 

developed areas of the free world. A billion 
people have their eyes set on economic progress. 
With the new-found political independence that 
has come to many nations has come a demand for 
similar social and economic progress. The ques- 
tion is: Will this progress take place in freedom? 
Will our free institutions prove equal to the task 
of meeting the economic aspirations of the peoples 
of Asia, Africa, and Latin America ? 

Challenge for the Free World 

This poses a great challenge and a great re- 
sponsibility for the entire free world. One of the 
most hopeful signs of the past year has been the 
way in which other industrialized nations have 
joined in making external capital available. In 
my appearance before this committee on January 
29, I described the expanded efforts of England, 
Germany, Canada, and Japan in this field. 
France for some time has been devoting substan- 
tial resources to the development of the African 
territories of the French Union, and Italy is now 
preparing to lielp, particularly in the Arab coun- 
tries. Nevei'theless, as the wealthiest ajid most 
industrialized of all nations, with capital avail- 
able for export, the United States remains the 
principal single source in the free world for the 
foreign capital needed by the less developed coun^ 
tries to supplement their own efforts. 


Dopartm^nt of Stai6 Bufl^fln 

Although this challenge is compelling, our in- 
terests go beyond it. "We now depend on the less 
developed areas for a critical margin of the raw 
materials which feed our industries; and that 
dependence is likely to increase as our national 
resources are depleted and our industries grow. 
The less develoijed comitries hold within their 
borders enormous natural resources which consti- 
tute a vast and relatively untapped potential for 
the entire f i"ee world. 

Moreover, the populations of the less developed 
countries present tlie prospect of substantial mar- 
kets for our goods. Although they are not now 
large-scale customers their purchases can be ex- 
pected to rise as development progresses. Higher 
incomes mean more purchasmg power. The ex- 
port opportunities which would be presented if 
the incomes of each of the millions of jjeople in 
Asia, Africa, and Latin America were increased 
by a small margin would indeed be impressive. 

Independent of — but intensifying — these chal- 
lenges is the aggressive presence of Communist 
imperialism. Tlie Soviet bloc is well aware of 
the profound urge for a better life that has swept 
the less developed areas and the opportunities 
which this situation presents for furtliering its 
own purposes. In my appearance before this 
committee last January, I noted that from 1954 
through 1958 the Sino-Soviet bloc agreed with 18 
underdeveloped countries to provide $2.4 billion 
in credits and grants for economic and military 
aid, of which $1.6 billion was for economic aid 
alone. Agreements totaling $1 billion were com- 
pleted in 1958, reflecting a marked step-up in the 
efforts of the bloc. From all indications this ac- 
celeratetl pace will be maintained. 

The breadth, scope, and intensity of the Soviet 
effort are illustrated in the charts on pages 35, 36, 
and 38 of the printed record of the January 29 
hearings. I should like to offer them, Mr. Chair- 
man, for inclusion in this record as well.^ 

In the face of these challenges the Congi-ess 2 
years ago established the Development Loan Fund 
and stated in so doing the fundamental truth 
"that the progress of free peoples in their efforts 
to further their economic development, and thus 
to strengthen their freedom, is important to the 
security and welfare of the United States." 

° Not printed hera 
May 4, 1959 

Specialized Purpose of tlie DLF 

The Development Loan Fund was established 
for a particular, specialized purpose: the provi- 
sion of capital for productive economic gi'owth. 
With the exception of the tecluiical cooperation 
program the other elements of tlie mutual security 
Ijrogram are not designed to promote economic 
development. They provide instead the military 
strength required to offset the Communist threat, 
and they help to maintain political and economic 
stability from year to year. These are both es- 
sential prerequisites to development itself, but 
their usefulness and purpose would be largely 
lost in the absence of adequate provision for for- 
ward movement in the development process. For 
this reason an adequate Development Loan Fmid 
can be considered the keystone of the arch in our 
mutual security progi-am. 

The development needs of the free world are so 
large that they require the combined efforts of 
public and private capital from all the industrial- 
ized countries. Eecognizing this, the DeA'elop- 
ment Loan Fund has been designed to supplement 
but not compete witli other free- world sources of 
financing. It does not compete with private in- 
vestment capital, the Export-Import Bank, or the 
International Bank for Eeconstruction and De- 
velopment. It works in the closest cooperation 
with these institutions. Because of the flexible 
terms on which its loans can be made, including 
the acceptance of local currencies in repayment, 
the Development Loan Fund can help to bring to 
fruition sound and worthwhile projects which 
otherwise could not be realized. This is so be- 
cause many less developed countries are not as yet 
able to earn enough foreign exchange to fully re- 
pay the loans required to complete large projects 
in the standard 10 to 15 years usually required by 
private capital and by the Export-Import Bank 
and the World Bank. 

The operating metliods of the Development 
Loan Fund are designed to promote efficient, long- 
term economic growth. Its financing is exclu- 
sively in the form of loans or other types of credit ; 
it does not make grants. It makes loans only for 
specific projects, and there is a separate loan 
agreement on each project tailoi-ed to the specific 
situation. The DLF does not program in ad- 
vance annual levels of assistance for particular 
countries. It focuses the primary responsibility 
on the governments or private businessmen con- 
cerned by responding only to sound proposals 


■which they submit. Furthermore, the DLF is not 
required to obligate its capital within any specific 
time period; it obligates funds only when it is 
convinced that efficient use can be made of them 
in connection with particular projects. In this 
way the DLF promotes economic growth through 
the employment of devices which encourage the 
efficient, businesslike use of resources. 

Need for Continuity 

An essential element in the effective use of the 
DLF is an adequate measure of continuity. With- 
out assurances that funds will be available over 
a period of years the DLF cannot realize its full 
potential in promoting sound development plan- 
ning. It is also difficult to work with the inter- 
national lending institutions in the absence of 
continuity. We have a vivid example of that 
situation today. As you know, the DLF is now 
out of funds. Of the $700 million appropriated 
so far, less than $1 million is still unallocated. 
Unless the Congress votes a supplemental appro- 
priation as has been requested by the President, 
we will be out of business and marking time until 
new funds for fiscal year 1960 are received, prob- 
ably in August.* 

What does that mean? Let me give you an 
example. Just last week, under the leadership 
of the World Bank, representatives of India, 
Britain, Germany, Canada, Japan, and the United 
States met in Washington to consider the needs 
of India in the 4th year of her second 5-year plan, 
which begins on April 1. In this meeting the 
World Bank and the representatives of every 
comitry but one indicated what they could do to 
help. That one was the United States. We had 
to say, "Proceed with your plan, and next August 
when one-third of your fiscal year is past we will 
tell you what, if anything, we can do." This in- 
cident is but one of many. A privately nm de- 
velopment bank in Iran designed to give major 
impetus to private investment, an airport in Chile, 
an essential electric transmission line in Pakistan, 
and many other projects on which planning was 
well along will have to be laid aside until new 
fmids are available. 

*The House of Representatives on Mar. 24 approved a 
supplemental appropriation of $100 millioD for the Devel- 
opment Lioan Fund, and the Senate Appropriations Com- 
mittee on Apr. 17 recommended a supplemental appro- 
priation of $200 million. 

I know that some of you have wondered why 
the administration is not now requesting that the 
Development Loan Fund be capitalized on a long- 
term basis. The reasons for not presenting such 
a request this year seemed to us compelling. In 
the first place we have now only about 1 year of 
effective operation of the Fund behind us. The 
additional experience that will come with another 
year's operation will be invaluable in judging the 
size and form which longer term capitalization of 
the Fund should take. You will recall that, when 
the President originally proposed the establish- 
ment of the Development Loan Fund 2 years ago, 
he asked for a 3-year capitalization and as he 
stated in his message last week it was his inten- 
tion, based on observation of its progress within 
that period, to ask for longer term capitalization 
commencing in fiscal year 1961. 

Another reason for postponing the decision on 
long-term capitalization flows from our desire to 
insure that the Development Loan Fund fits in 
carefully to the pattern of other development in- 
stitutions. This year consideration is being given 
to the creation of two new institutions in this field. 
One is the inter-American development banking 
institution. Negotiations looking toward its cre- 
ation have been under way in Washington among 
the 21 members of the Organization of American 
States since early January.' They are now near- 
ing their conclusion and we hope that this institu- 
tion will become a reality in the course of this 
year. The second institution to which considera- 
tion is being given is an international develop- 
ment association to be formed as an adjunct of the 
World Bank.^ This would be a multilateral ver- 
sion of our own Development Loan Fimd. Wlule 
negotiations regarding this institution are not as 
far advanced as in the case of the inter- American 
institution, we do expect that later in the year 
we will have a clearer idea as to the practicability 
and possibilities of such an institution. Such in- 
formation regarding these two institutions would 
be useful in working out more precise long-term 
plans for the Development Loan Fmid. Taking 
into account this infoi-mation and our further ex- 
perience in operating the Fimd, the Department 
of State presently intends to submit for considera- 
tion by the President next fall a proposal for the 

' See p. 646. 

* For background, see Buixetin of Apr. 7, 1958, p. 564. 


Deparfmenf of State Bulletin 

long-term financing of the Development Loan 
Fund beginning in fiscal year 1961. 

Importance of DLF Confirmed by Experience 

The Development Loan Fund now has behind 
it about 14 months of active experience. This 
has given proof of its ability to make useful loans 
and to operate effectively at a rate of at least 
$700 million a year. Furthermore, we now liave 
confirmation in experience of the important role 
this institution can play in the conduct of our 
foreign policy. 

As you will note from the chart ' on page 2 of 
the presentation book devoted to the DLF, it had 
taken under consideration $2.8 billion in screened 
proposals by the end of January 1959. $602 mil- 
lion of tliis total were later withdrawn, trans- 
ferred to other interested financing institutions, or 
found on further examination to be inappropriate 
for DLF financing. 

As of this morning only $800,000 of the Fund's 
capital is still available for loans. The loans we 
have so far made are all for specific, sound proj- 
ects. As Chairman of the Board of Directors I 
have gone over each commitment together with 
my colleagues on the Board — the Chairman of 
the Board of Directors of the Export-Import 
Bank ; the United States Executive Director of the 
IBKD, who is also an Assistant Secretary of the 
Treasury ; the Director of the ICA ; and the Man- 
aging Director of the Fund. The Board has 
approved each loan. I am satisfied that each com- 
mitment is technically, economically, and finan- 
cially sound and will contribute to economic 

We have made loans for roads, power genera- 
tion and transmission, port facilities, railways, 
telecommunications, irrigation, and other types of 
economic overhead facilities. We are also financ- 
ing cement and fertilizer plants, jute mills, a pulp 
factoi-y, a sugar mill, and other manufacturing 
enterprises. The lending resources of several es- 
tablished, well-run local development banks have 
also been enlarged to enable them to make more 
foreign exchange available for investment by 
small entrepreneurs. 

In its first year the DLF was also able to join 
with other lenders in specific loan transactions. 
Thus shortfalls in project financing under India's 
second 5-year plan were met with several loans 

' Not printed here. 
May 4, 1959 

totaling $175 million, in conjunction with credits 
extended by the Export-Import Bank, the Inter- 
national Bank for Reconstruction and Develop- 
ment, and the Governments of the United King- 
dom, Germany, Japan, and Canada. One of the 
DLF loans will enable Indian manufacturer to 
produce about 20,000 freight cars, 300 steam loco- 
motives, and 600 steel coaches for the railway sys- 
tem; another will permit the assembly in India 
of about 16,000 buses, trucks, and jeeps and the 
expansion of India's privately owned jute and 
cement industries. Above all, the DLF loans 
were a critical element in enabling India's second 
5-year plan to continue without further cutbacks. 
At the same time the DLF made loan commit- 
ments totaling about $70 million for seven differ- 
ent projects in neighboring Pakistan. 

Confusion Regarding Availability of Funds 

I have noted some confusion regarding the 
availability of fimds to the DLF. It has been 
said that since the DLF lias only expended a very 
small portion of its appropriations — $27 million 
out of $700 million — there is no need as yet for 
further appropriations. Such statements totally 
ignore the fundamental nature of the DLF. The 
DLF finances projects. Wlien it makes a loan 
it commits sufficient funds to carry the project 
to completion. Development projects take time 
to construct. On the average World Bank proj- 
ects have taken 3 to 4 years to complete. The 
DLF projects are similar in nature. We can ex- 
pect to spend about 10 percent to 15 percent of 
the funds allotted to each project during the first 
year after a loan agreement is signed and the rest 
over the remainder of the 3- to 4-year period. 
This has been the experience of the World Bank 
and of the Export-Import Bank in the develop- 
ment field. This means that when fully under 
way the Development Loan Fund can expect to 
have a pipeline of imexpended funds equivalent 
to about 2 full years of operations. Once a com- 
mitment is made the funds are set aside for the 
particular project and are unavailable for other 
uses. Therefore the imexpended fimds of the 
DLF have no connection with its ability to vmder- 
take new projects. Tliat ability is measured 
solely by the amount of uncommitted funds. 

Here again there has been some confusion as 
to when funds are actually committed and become 
vmavailable for other uses. The commitment 


process used by the DLF is identical to that used 
by the Export-Impoi-t Bank for many yeai-s. It 
is a tried and time procedure. It starts with the 
approval of a loan by the DLF Board of Direc- 
tors. Once a loan has been approved by the 
Board it is submitted to the National Advisory 
Council for its advice, and when that advice is 
received a formal letter of commitment is given 
to the prospective borrower. This generally oc- 
curs within 2 weeks of Board action, and this 
constitutes the pledged word of the United States. 
At this point the U.S. commitment to make the 
loan is publicly amiounced in the coimtry of the 
borrower. At this point our funds are committed 
and are unavailable for any other use. As the 
Director of the Bureau of the Budget stated in his 
recommendation on the supplemental appropria- 
tion request, our funds are, in effect, obligated at 
this point. 

The final step in the process is the working out 
of a detailed loan agreement many pages thick. 
This process now takes the DLF a bit more than 
90 days on the average. As we gain experience 
we hope to cut this period to somewhere around 
60 days, the average time now required by the 
Export- Import Bank for this same step. While 
it is only when this detailed loan agreement is 
signed that all the legal formalities of obligation 
are fully completed, the commitment by the 
United States runs from the date when its written 
word is given to tlie borrower. After this date 
the only circumstance in which the funds would 
revert to the DLF for other use would be if the 
prospective borrower, for one reason or another, 
decided not to accept the loan. Thus the need 
for supplementary funds in fiscal year '59 and 
for the funds requested for fiscal year '60 is di- 
rectly related to the sums publicly committed by 
the Fmid rather than to expenditures or to the 
total of completed loan agi-eements. 

Request for New Capital 

The $700 million in new capital which we are 
requesting that the Congress make available be- 
ginning in fiscal year 1960 will permit the DLF 
to continue lending at about the same rate that it 
maintained during its first year of active opera- 
tions. Sucli an appi-opriation is the barest mini- 
mum needed in advancing our objectives in the less 
developed areas. It represents less than one- 
sixth of 1 percent of our gross national product. 

Past experience is one measure of tlie need. In 
1957 and 1958 many of these countries showed no 
appreciable mcrease m incomes per person. In 
some cases overall gi'owth was more than eaten up 
by population increases. During these years the 
impact of previous development assistance pro- 
gi-ams undertaken by tlie United States was being 
felt. These investment activities, which were 
undertaken prior to the establisliment of the DLF, 
averaged somewhat more tlian $400 million per 
year. The results confirm that an acceptable rate 
of progress will require considerably more than a 
$400 million rate of United States development 

Our request is also minimal when compared to 
the recommendations of almost every responsible 
public and private body tliat has suiTeyed this 
problem. In April 1957 the Committee for Eco- 
nomic Development, wliose membership contains 
many responsible businessmen, recommended an 
amiual outlay of $1 billion a year over each of the 
succeeding 5 years in addition to then current U.S. 
development assistance programs. In May 1958 
the National Planning Association, of wliich nu- 
merous business, labor, and academic leadere are 
members, called for a U.S. Government program 
with $10 billion to $20 billion in capital for use 
over 5 to 10 years to finance basic public invest- 
ment in underdeveloped countries. And in the 
spring of 1958 the Special Studies Project of the 
Rockefeller Brothers Fund echoed recommenda- 
tions made in the previous year by the Inter- 
national Development Advisory Board when it 
called for substantial increases in the level of 
appropriations already made available to the 

And only last week the President's Committee 
To Study the U.S. Military Assistance Program, 
headed by William H. Draper, Jr., and including 
among its membership two former Directors of 
the Budget and several former higli-ranking mili- 
tary officers, concluded that the total fiscal year 
1960 request for economic assistance as a whole 
was the minimum required. The Committee also 
expressed a belief that loans for development as- 
sistance under the inutual security program will 
probably be needed at a rate of at least $1 billion 
X^er year by fiscal year 1961. 

I cannot emphasize too strongly the importance 
that President Eisenhower pereonally attaches to 
this request. He fix'mly believes tliat the mutual 


Department of State Bulletin 

security program must deal with the deep social 
and economic undercurrents that are now shaping 
the free world's tomorrow. It must help to pre- 
sent an affirmative, positive image of the United 
States to the world, an image of the gi'eat tradi- 
tion of enterprise and idealism that has motivated 
the American people since our earliest beginnings. 
It must look ahead and try to cope today with 

the conditions that will affect the interests of the 
United States in years to come. 

The Development Loan Fund can be a major 
response to these challenges. It can represent a 
major exercise of our responsibilities. "VVliether 
it will, depends at this point in history on wliether 
our Nation is willing to invest today in the free 
world's peace and progress tomorrow. 


Calendar of International Conferences and Meetings ' 

Washington Jan. 8-Apr. 8 

Adjourned During April 1959 

lA-ECOSOC Specialized Committee of Governmental Representa- 
tives To Negotiate and Draft the Articles of Agreement of an 
Inter-American Financial Institution. 

U.N. Commission on Human Rights: 15th Session New York Mar. 16-Apr. 10 

U.N. Conference on Elimination and Reduction of Future Stateless- Geneva Mar. 24- Apr. 17 


Tripartite and Quadripartite Foreign Ministers Meetings .... Washington Mar. 31-Apr. 1 

Interparliamentary Council: 84th Meeting Nice Apr. 1-6 

World Meteorological Organization: 3d Congress Geneva Apr. 1-29 

ITU International Radio Con'sultative Committee (CCIR) : 9th Los Angeles Apr. 1-30 

Plenary Assembly. 

ICEM Executive Committee: 12th Session Geneva Apr. 2-6* 

Ceremony Commemorating the 10th Anniversary of NATO and Washington Apr. 2-4 

Ministerial Session of the Council. 

Caribbean Commission: Ad Hoc Committee on Revision of Agree- Trinidad Apr. 2-10 

ment for Establishment of the Commission. 

2d FAO World Fishing Boat Congress Rome Apr 

GATT Panel on Subsidies and State-Trading . ._ Geneva Apr 

ILO Committee of E:>;perts on the Application of Conventions and 
Recommendations: 29th Session. 

ICEM Council: 10th Session 

FAO European Commission for Control of Foot and Mouth Dis- 

U.N. Economic and Social Council: 27th Session Mexico, D.F Apr 

IAEA Board of Governors: 11th Session Vienna Apr 

Geneva Apr. 

Geneva Apr. 

Rome Apr. 





SEATO Council: 5th Meeting Washington Apr. 8-10 

FAO Panel of Experts on Agricultural Support Measures 

GATT Panel on Antidumping and Countervailing Duties .... 

FAO: 2d Meeting of Government Experts on Use of Designations, 

Definitions, and Standards for Milk and Milk Products. 
U.N. Committee for the Purpose of Determining When the General 

Assembly Should Consider the Question of Defining Aggression. 

Rome Apr. 9-30 

Geneva Apr. 1.3-17 

Rome Apr. 13-18 

New York Apr. 14-17 

'IPrepared in the Office of International Conferences, Apr. 17, 1959. Asterisks indicate tentative dates. Following 
is a list of abbreviations: CCIR, Comity consultatif international des radio communications; CCITT, Comite oonsultatif 
international tel^graphique et t^l^phonique; ECAFE, Economic Commission for Asia and the Far East; ECLA, Economic 
Commission for Latin America; ECOSOC, Economic and Social Council; FAO, Food and Agriculture Organization; 
GATT, General Agreement on Tariffs and Trade; IAEA, International Atomic Energy Agency; I.\-ECOSOC, Inter- 
American Economic and Social Council; IBE, International Bureau of Education; ICAO, International Civil Aviation 
Organization; ICEM, Intergovernmental Committee for European Migration; ILO, International Labor Organization; 
IMCO, Intergovernmental Maritime Consultative Organization; ITU, International Telecommunication Union; NATO, 
North Atlantic Treaty Organization; OAS, Organization of American States; PAHO, Pan American Health Organization; 
SEATO, Southeast Asia Treaty Organization; TAA, Technical Assistance Administration; U.N., United Nations; 
UNESCO, United Nations Educational, Scientific and Cultural Organization; UNICEF, United Nations Children's 
Fund; WHO, World Health Organization; WMO, World Meteorological Organization. 

May 4, 7959 


Calendar of International Conferences and Meetings — Continued 

Adjourned During April 1959 — Continued 

FAO Ad Hoc Committee on Campaign To Help Free the World Rome Apr. 15-17 

From Hunger. 

Caribbean Commission: Conference on the Financing of Agriculture. Trinidad Apr. 15-24 

UNESCO Study Group on Works of Applied Art, Designs, and Paris Apr. 20-23 

Models. * 

ILO Meeting To Establish an Individual Control Book for Drivers Geneva Apr. 20-24 

and Assistants in Road Transport. 

Permanent International Commission of Navigation Congresses: Brussels Apr. 21-22 

Committee Meeting. 

U.N. Commission on Narcotic Drugs: Committee on Illicit Traffic . Geneva Apr. 22-24 

Conference on Food for Peace: Officials Meeting Washington Apr. 27-29 

In Session as of April 30, 1959 

Political Discussions on Suspension of Nuclear Tests Geneva Oct. 31, 1958- 

Four-Power Working Group (preparatory to Foreign Ministers London Apr. 13- 


PAHO Subcommittee To Study the Constitution and Rules of Washington Apr. 13- 


U.N. Committee on Information From Non-Self- Governing Ter- New York Apr. 20- 

ritories: 10th Session. 

U.N. Economic Commission for Europe: 14th Session Geneva Apr. 20- 

U.N. Social Commission: 12th Session New York Apr. 27- 

ILO Coal Mines Committee: 7th Session Geneva Apr. 27- 

OAS Special Committee To Study New Measures for Economic Buenos Aires Apr. 27- 

Development ("Committee of 21"). 

U.N. Commission on Narcotic Drugs: 14th Session Geneva Apr. 27- 

U.N. Lead and Zinc Committee New York Apr. 28- 

ICAO Aeronautical Information Services and Aeronautical Charts Montreal Apr. 28- 


South Pacific Conference: 4th Session Rabaul, New Britain Apr. 29- 

WMO Executive Committee: 11th Session Geneva Apr. 29- 

Scheduled May 1 Through July 31, 1959 

12th International Cannes Film Festival Cannes May l- 
PAHO Executive Committee: 37th Meeting Washington May 4- 

U.N. Transport and Communications Commission: 9th Session. . New York May 4- 

U.N. International Study Group on Lead and Zinc New York May 4- 

U.N. ECAFE Inland Transport and Communications Committee: Tokyo May 4- 

Working Party of Telecommunications Experts. 

Conference on Food for Peace: Ministers Meeting Washington May 5- 

GATT Intersessional Committee Geneva May 6- 

Rubber Study Group: Special Management Committee London May 11- 

ITU International Telephone and Telegraph Consultative Com- Tokyo May 11- 

mittee (CCITT) : Meeting of the Plan Subcommittee for South 

Asia and the Far East. 
GATT Committee on Balance-of -Payments Restrictions Geneva May 11- 
Meeting of Four-Power Foreign Ministers Geneva May 11- 

GATT Consultations With European Economic Community on Geneva May 11- 


U.N. ECLA Committee on Trade Panamd May 11- 

G ATT Contracting Parties: 14th Session Geneva May 11- 
FAO Technical Meeting on Fishery Cooperatives Naples May 12- 

FAO Cocoa Study Group: Statistical Committee Rome May 12- 

12th World Health Assembly Geneva May 12- 

U.N. Economic Commission for Latin America: 8th Session . . . Panamd May 13- 

South Pacific Commission: 19th Session Rabaul, New Britain May 13- 

FAO Cocoa Study Group: Executive Committee Rome May 13- 

International Cotton Advisory Committee: 18th Plenary Meeting . Washington May 13- 

4th Inter-American Indian Conference Guatemala City May 16- 

U.N. Commission on Sovereignty Over Natural Wealth and Re- New York May 18- 


U.N. ECOSOC Latin American Seminar on Status of Women . . . Bogotd May 18- 

UNESCO External Relations Commission Paris May 18- 

FAO Group on Grains: 4th Session Rome May 18- 

UNESCO Administrative Commission Paris May 18- 

ITU Administrative Council: 14th Session Geneva May 19- 

UNESCO Intergovernmental Advisory Committee for Major Proj- Paris May 19- 

ect on "Mutual Appreciation of Eastern and Western Cultural 

Values": 2d Meeting. 

644 Department of Sfafe Bulletin 

16th International Congress of Veterinarians 

ILO Governing Body: 142d Session (and Committees) 

ICAO Panel for Coordinating Procedures Respecting the Supply of 
Information for Air Operations (P.I. A. Panel). 

NATO Civil Defense Committee 

UNESCO Executive Board: 54th Session 

U.N. Special Fund: 2d Session of Governing Council 

WHO Executive Board: 24th Session 

U.N. Scientific Advisory Committee of Atomic Energy 

IAEA Symposium on Radioactivation Analysis 

Inter-American Commission of Women: 13th General Assembly . 

International Commission for Northwest Atlantic Fisheries: 9th 
Annual Meeting. 

FAO Committee on Commodity Problems: 31st Session 

U.N. Trusteeship Council: 24th Session 

ILO Conference: 43d Session 

Customs Cooperation Council: 14th Session 

FAO/UNICEF Joint Policy Committee: 2d Session 

FAO Council: 30th Session 

6th International Electronic and Nuclear Exhibit and Congress . 

GATT Group of Experts on Restrictive Business Practices . . . 

ICAO Assembly: 12th Session 

South Pacific Research Council: 10th Meeting 

International Whaling Commission: 11th Meeting 

IMCO Maritime Safety Committee: Subcommittee on Tonnage 

9th International Berlin Film Festival 

FAO Desert Locust Control Committee: 6th Session 

GATT Committee on Balance-of-Payments Restrictions 

15th International Dairy Congress 

U.N. Economic and Social Council: 28th Session 

U.N. ECAFE Conference of European Statisticians: 7th Session . 

Permanent International Commission of Navigation Congresses: 
Annual Meeting. 

Executive Committee of the Program of the U.N. High Commis- 
sioner for Refugees: 2d Session. 

lA-ECOSOC Permanent Technical Committee on Ports: 2d 

Inter- American Travel Congresses : 3d Meeting of Technical Com- 
mittee of Experts on Travel Plant. 

U.N. ECAFE/FAO Working Party on Utilization of Wood Poles . 

International Seed Testing Association: 12th Congress 

UNESCO/IBE: 22d International Conference on Public Educa- 

IMCO Council: 2d Session 

Caribbean Commission: Conference on Revision of Agreement for 
Establishment of the Commission. 

IAEA Seminar on Training of Specialists in the Peaceful Uses of 
Atomic Energy. 

U.N. ECAFE Working Party on Small-Scale Industries and Handi- 
craft Marketing: 6th Meeting 

U.N. ECOSOC Technical Assistance Committee 

Madrid May 21- 

Geneva May 25- 

Montreal May 25- 

Paris May 25- 

Paris May 25- 

New York May 26- 

Geneva May 

New York or Geneva .... May 

Vienna June 1- 

Washington June 1- 

Montreal June 1- 

Rome June 1- 

New York June 2- 

Geneva June 3- 

Brussels June 8- 

Rome June 8- 

Rome June 15- 

Rome June 15- 

Geneva June 15- 

San Diego June 16- 

Noum^a, New Caledonia . . . June 17- 

London June 22- 

London June 24- 

Berlin June 26- 

Rome June 29- 

Geneva June 29- 

London June 29- 

Geneva June 30- 

Geneva June 

Brussels June 

Geneva June 

Montevideo June 

Washington June 

Bangkok July 1- 

Oslo July 6- 

Geneva July 6- 

London July 20- 

Trinidad July* 

Saclay, France July 

Singapore July 

Geneva July 

Current U.N. Documents: 
A Selected Bibliography^ 

Security Council 

Letter Dated ."> February 1959 From the Acting Perma- 
nent Representative of Pakistan Addressed to the Pres- 
ident of the Security Council Concerning Kashmir. 
S/4157. February 0, 1959. 2 pp. mimeo. 

Letter Dated 6 February 1959 From the Acting Perma- 
nent Representative of Thailand Addressed to the 

' Printed materials may be secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press. 2960 Broadway, New York 27, X.Y. Other 
materials (mimeographed or processed documents) may 
be consulted at certain designated libraries in the United 

Secretary-General Concerning Relations With Cambo- 
dia. S/4158. February 7, 1959. 2 pp. mimeo. 
Letter Dated 19 February 1959 From the Permanent 
Representative of the United Arab Republic Addressed 
to the President of the Security Council Concerning 
Israeli Aggression. S/4164. February 20, 1959. 2 pp. 

Economic and Social Council 

Economic Commission for Asia and the Far East. Report 
of the Working Party on Co-Ordination of Transport to 
the Inland Transport and Communications Committee 
(Eighth Session). E/CN.ll/TRANS/137. January 2, 
1959. 31 pp. mimeo. 

Customs Convention on the International Transport of 
Goods Under Cover of TIR Garnets (TIR Convention) 
and Protocol of Signature. E/ECE/332. January 15, 
1959. 65 pp. mimeo. 

May 4, J959 


American Republics Draft Agreement 
for Inter-American Development Bank 

The Specialized Committee for Negotiating 
and Drafting the Instrument of Organization of 
an Inter-Americam, Financial Institution, con- 
voked hy the Inter- American Economic and So- 
cial Ooiincil on October 9, J958, began its loork at 
the Pan Amencan Union, Washington, D.O., on 
January 8, 1959. The Committee negotiated and 
drafted an agreement for the proposed Inter- 
American Development Bank and established a 
Preparatory Committee to be convoked by the 
Secretary General of the Organization of Ameri- 
can States for September 15, 1959. Following is 
a statement made at the final plenary session of 
the Specialized Committee on April 8 by the U.S. 
representative, T. Graydon Upton, Assistant Sec- 
retary of the Treasury, together with the text of 
tlie resolution setting up the Preparatory Com- 
mittee. Copies of the Final Act, lohich includes 
the text of the agreement, may he obtained at a 
nojninal cost by writing to the Pan American 
Union, Washington, D.C. 


Mr. Chairman, Mr. Secretary General, fellow 
delegates to the Specialized Committee: 

I have the honor to read a statement by the 
President of the United States : 

The proposal for an Inter- American Development Bank 
has taken concrete form as a result of the negotiations 
which have just been concluded in Washington. Such an 
Inter-American financial institution has been an aspira- 
tion and hope of Latin American countries for decades. 

I believe that the proposed Inter-American Develop- 
ment Bank, vehen approved by the members of the Or- 
ganization of American States through their regular leg- 
islative processes, will make a significant contribution to 
the continuing economic progress of the American Repub- 
lics and Stand as an enduring testimonial to the spirit of 
cooperation among these nations. I congratulate the rep- 
resentatives of the nations concerned for their work in 
advancing the proposed bank to the point marked by 
today's event. 

I also would like to read a letter addressed to 
me by the Secretary of the Treasury, Robert B. 
Anderson : 

Dear Mb. Upton: I congratulate you and the other 
members of the Specialized Conmiittee who are today 
completing the final step in drafting a charter for the 
proposed Inter-American Development Bank. 

I am confident that the proposed bank will become a 
major instrument of economic cooperation among the 
American Republics. As a result of the negotiations 
during the past three months in Washington, the ideas 
discussed at the meeting of Ministers of Finance or 
Economy in Buenos Aires in August of 19.57 ' have now 
been given a definite and concrete form. The instrument 
which has been drafted will provide the basis for the 
institution to carry out its operations in an effective and 
responsible manner, with the active participation of the 
Latin American countries in all its activities. 

I would be pleased if you would read this letter at the 
closing session at the Pan American Union as an ex- 
pression to all concerned of my deep satisfaction. 

Robert B. Anderson 

At the invitation of the Inter- American Eco- 
nomic and Social Council and under the instruc- 
tions of our governments, we met together in this 
room just 3 months ago to begin a very challeng- 
ing task. We had been asked to draft a charter 
for an inter-American financial institution, to 
bring to realization the hopes and dreams for such 
an institution which had existed for the last 60 
years. We were instructed to remain in continu- 
ous session until we could transform these aspira- 
tions of the past into a concrete, specific instru- 
ment for dealing with the development problems 
of the present. Today our work is completed. 
The charter for the Inter- American Development 
Bank lies before us on the table. 

One of the distinguished delegates reminded us 
the other day of the proverb that a journey of a 
thousand miles begins with a single step. The 
step we have taken here is a long one and a firm 
one which starts us straight toward our objective 
of speeding still further the economic develop- 
ment of all the American Republics. 

It has been said that there is nothing more pow- 
erful than an idea whose hour has arrived. The 
hour for the idea of an Inter- American Develop- 
ment Bank has now arrived. Its arrival has been 
hastened by the unremitting hard work and the 
real sense of give and take wliich has characterized 
this meeting. It has been hastened by the fine 
feeling of inter- American cooperation wliich has 
been displayed by every delegate to this Special- 
ized Committee. To those of you who have not 
participated in our work for 13 busy weeks, these 
words may sound like the usual formalities of a 
closing ceremony. But those who have shared the 

' For background, see Bulletin of Sept. 16, 1957, p. 
463, and Sept. 30, 19.57, p. 539. 


Department of State Bulletin 

close analysis of every phrase and every para- 
graph, the long hoiire of discussion with which we 
clarified our objectives, tlie search for a satisfac- 
tory capital structure — you will know that I 
speak sincerely. 

Delegates from 21 nations do not spend 3 in- 
tensive months working on a complex problem 
of the type witlr which we were faced without 
having honest differences of opinion. My admira- 
tion is very high indeed for the manner in which 
individual delegates presented and supported the 
positions of their governments. But together, 
country by comitry, delegate by delegate, we 
placed our individual concepts under searching 
examination. Many of our original thoughts were 
revised, clarified, and given precise expression by 
the process of analysis and examination and are 
found in the charter before us. 

Wlien so many outstanding individuals have par- 
ticipated constructively in our work, it would be 
difficult to suggest which delegate made which 
contribution to our success. Nevertheless there 
was one individual whose unlimited and conscien- 
tious toil, whose maf ailing good hmnor, and whose 
ability to bring about the most satisfactory merger 
of different viewpoints were outstanding. On 
many occasions he found the path to our continued 
progress. His optimism carried us through many 
a long and difficult session. I refer, of course, to 
our chairman, Dr. Mario O. Mendivil. To him 
belong our affectionate and sincere thanks. May 
he wear this achievement proudly. 

The sincere thanks of the Committee are also 
due, and overdue, to the Organization of Ameri- 
can States and to its Director General, Dr. [Jose 
A.] Mora. The able chairman of the Inter-Amer- 
ican Economic and Social Council, Sr. Lie. Rafael 
Glower Valdivieso, served as vice chairman of the 
Committee and assisted Dr. Mendivil and all the 
rest of us in the successful conclusion of our work. 

We would not be here today celebrating the 
completion of our work were it not for the devoted 
and intelligent support which the secretariat of 
the Organization of American States has provided 
us through long and gi'ueling hours of drafting, 
translation, duplication of documents, and other 
services. Our thanks are due to Dr. [Cecilio J.] 
Morales, Secretary General of the Specialized 
Committee, and to Dr. [Pedro] Iraneta, and to 
many of their associates. My delegation, in par- 
ticular, owes a debt of gratitude to the translation 

staff which enabled us to follow the negotiations 
with speed and clarity. 

Resisting the temptation to name evei^y dele- 
gate, I think the Committee must also express its 
appreciation for the outstanding work of the offi- 
cials of the various subcommittees. The delegate 
from Chile, Sr. Don Felipe Herrera, moved the 
work of subcommittee 2 forward with dispatch. 
Subcommittee 1 started its work under the ener- 
getic and experienced hand of Dr. Ignacio Copete 
Lizarralde of Colombia. "Wlien Dr. Copete found 
it necessary to return to his own country, Sr. Don 
Jorge Hazera of Costa Rica carried forward the 
work of subcommittee 1, which was called upon to 
handle very complex portions of the Committee's 
work. The Style Committee worked long and 
tirelessly imder the direction of Sr. Don Jorge 
Marshall of Chile. The Committee on Creden- 
tials concluded its work promptly under the chair- 
manship of Ambassador Virgilio Diaz Ordonez. 

I would also like to give my personal thanks to 
those who served with me in the U.S. delegation. 
They include representatives of the Departments 
of State and Treasury, the Export-Import Bank, 
and the Development Loan Fund. I would also 
like to thank those who, by sitting on the National 
Advisory Council on International Monetary and 
Financial Problems, of which Secretary Anderson 
is cliairman, served as the coordinating avenue 
for the U.S. delegation position. 

The charter is now completed. We may all 
spend a moment looking back with satisfaction on 
a job well done, but after this brief pause we must 
again look forward, not back. We must now all 
do our utmost to bring about expeditious con- 
sideration of the Inter-American Development 
Bank by our respective legislative bodies. 

This Committee now disbands, its work com- 
pleted. Each of us can point with pride and con- 
template with lionor the results of our labors. 

The charter which we are submitting today calls 
for an institution of the American Republics, 
which will work for the benefit of the American 
Republics, and which will be staffed and operated 
by the American Republics. It is our institu- 
tion. We are happy to be in a position today to 
participate in signing the Final Act which this 
Specialized Committee has prepared. We look 
forward with confidence to a futui'e for the Inter- 
American Development Bank which will make it a 

May 4, 1959 


focal center for the financial and economic prog- 
ress of all Latin America. 


1. A Preparatory Committee for the Inter-Ameriean 
Development Bank is liereby established to perform the 
following functions : 

(a) To establish the rules of procedure for its 

(b) To take the necessary steps for the preparation of 
the first meeting of the Board of Governors, including the 
drafting of an agenda and provisional regulations for that 
meeting ; and 

(c) To prepare for consideration by the Board of Gov- 
ernors at its first meeting such studies as the Committee 
deems necessary on technical, administrative, and legal 
matters related to the establishment of the Bank. 

2. The Preparatory Committee shall perform its duties 
until the first meeting of the Board of Governore. The 
Committee shall be composed of one representative of 
each of the following countries : 


Costa Rica 
El Salvador 

United States of America 
The first meeting of the Preparatory Committee will 
be held on September 15, 1959. 

3. The Preparatoi-y Committee shall make arrange- 
ments with the General Secretariat of the Organization 
of American States as to the cooperation of that Secre- 
tariat with the Committee, especially with respect to 
providing personnel and space for its work. 

4. Once the Agreement Establishing the Inter-American 
Development Bank ha.s entered into force, pursuant to 
Article XV, Section 2, the Committee may have at its 
disposal, to enable it to perform its functions, not more 
than 20 per cent of the resources which are required to 
be delivered pursuant to Section 1(c) of that article. 

5. Each govei-nment shall defray the expenses inci- 
dental to its representation on the Preparatory 

Situation of International Trade 
in Primary Commodities 

Statement Tjy Thomas C Mann 

Assistant Secretary for Economic Affairs ^ 

My country ranks second to none in its interest 
in promoting the steady and rapid development 
of Asia, Africa, and Latin America within a pros- 
perous world economy. We appreciate the clear 
relationship of commodity problems to these objec- 

tives. If there are possibilities for reducing the 
severity of fluctuations in the prices of primary 
products which are being overlooked, the United 
States has an obvious interest in having them 
brought to light. If these possibilities appear to 
be sound and constructive, the United States is 
certainly prepared to give them serious considera- 

The United States shares in the general concern 
over problems of commodity trade for the further 
reason that it is itself one of the world's largest 
producers and traders of primary products. As 
lexporter or importer, we account for more than 
ione-third of world trade in the leading primary 
commodities. We supply in some years more than 
half of the world's exports of coal and corn and 
between a third and a half of the world's exports 
of wheat, cotton, and tobacco. We are also the 
largest single market for many commodities. We 
must import all of our i-equirements of some com- 
modities and a large and generally increasing 
share of our requirements of others. Thus, the 
United States has, in the recent past, been the 
destination for over half of the world's exports 
of coffee and tin and for between a third and a half 
of the world's exports of lead, zinc, cocoa, and 

Outlook for Primary Commodity Markets 

When this Commission met last year the outlook 
for primary commodity markets was uncertain and 
the source of considerable concern. We meet today 
under better circumstances. The recession in the 
United States was short and relatively mild. I am 
pleased to say that it did not occasion any decline 
in LTnited States imports of foodstuffs and other 
consumer goods, while decline in United States 
imports of industrial raw materials did not exceed 
2 percent in volume. United States production 
bore tlie brunt of reduced demand in a number of 
cases. United States exports of primary products 
also declined in this period. As the current Com^ 
modity Sw^ey ^ points out, the cutback in import 
demand in Western Europe and Japan affected 
exports from the United States to a greater extent 
than exports from other suppliers, including the 

' Made at the 7th session of the U.N. Commission on 
International Commodity Trade at New York, N.T., on 
Mar. 16 (U.S./U.N. press release 3157). Mr. Mann is the 
U.S. representative on the Commission. 

• U.N. doc. E/CN. 13/33. 


Department of State Bulletin 

less developed countries. Commodity prices, with 
some conspicuous exceptions, have strengthened 
and stabilized. For a number of commodities, 
lower prices have meant an improved competitive 
position and expanded markets. 

All of this does not mean that commodity prob- 
lems are no longer of serious current concern for 
many countries and of continuing, recun-ent con- 
cern to us all. While the experience of the recent 
past shows once again that the industrial coun- 
tries have the ability and will to moderate fluc- 
tuations in business activity, it also shows that 
recessions, though neither deep nor prolonged, 
may weaken individual commodity markets and 
thus, for a time, reduce the income of countries 
dependent on these markets. Moreover, as other 
speakers have noted, and as the secretariat's fine 
study [Commodity Survey'] and the working 
party's useful summai-y ^ amply demonstrate, cur- 
rent demand is only one part of the story. There 
are other short-term, or long-term, factors at work 
in the case of some commodities which can lead 
to excess supplies and miprofitable prices at any 
prospective levels of demand. 

In the year and a half that I have been in my 
present position, no aspect of our foreign economic 
policy has received more attention within the 
United States Government than international 
commodity problems, nor proved more stubborn 
to deal with. I have heard many suggestions as 
to what we and others should do about them. I 
have listened with an open mind. I have been 
unable to convince myself that intergovernmental 
agreements regulating prices or trade are gen- 
erally feasible or desirable. There are exceptions. 
For example, I imagine none of us would welcome 
the elimination of the agreements which exist in 
regard to coffee, sugar, tin, and wheat. Possibly 
other arrangements of one kind or another may be 
adopted in the future in respect to other com- 
modities. But generally speaking the burden 
should be on the proponents of stabilization 
schemes to show that they are in the best interest 
of the less developed countries — and by "best in- 
terest" I mean the long- as well as the short-term 
interest of these countries. 

At a time when productive capacity has, in 
many cases, temporarily outstripped demand, with 
consequent building up of surpluses, a suggestion 

' U.N. doc. E/CN.13/L.64 and Corr. 1. 

which I frequently hear is that we resort to inter- 
national stockpiling for stabilization puii)oses, or 
to internationally finan.ced national stockpiles. 
Although we have not had much international 
experience with stockpiling, we have had consid- 
erable experience at the national level, particu- 
larly in my country. As the current Comvuodity 
Survey indicates, one result of our stockpile pro- 
grams has been to create a false demand for a 
time and thereby encourage not stabilization but 

Many of j'ou are familiar with how this has 
worked in the case of lead and zinc. In 1954 
President Eisenhower announced that, rather 
than approve the recommendation of the Tariff 
Commission for increased tariffs, he was institut- 
ing an expanded stockpile program for domestic 
lead and zinc and directing the Secretary of Agri- 
culture to barter surjjlus agricultural products for 
foreign lead and zinc, which would go into the 
supplemental stockpile.* We find now that, by 
this action, we only postponed the day of reckon- 
ing when producers of lead and zinc around the 
world must go through the agonizing process of 
cutting back their current output until it is more 
nearly in balance with consumption.'^ We had 
hoped to buy a little time in which these adjust- 
ments could be made gradually and relatively 
painlessly. But the combination of relatively 
high prices and an assured market for any output 
above commercial demand discouraged the nec- 
essary adjustments. It provided the incentive for 
continued excess production, not for production 

Another possible expedient which is frequently 
discussed as a means of keeping the pressure of 
cun-ent excess supplies off the market and of 
maintaining prices is to have exporters agree to 
establish export quotas which would regulate the 
amomit coming onto the market and allocate that 
amount among exporters in accordance with some 
historical pattern of trade. Although quotas are, 
as in the case of coffee, sometimes necessary as 
emergency stopgap measures, I am troubled when 
people speak of them as solutions to problems of 
imbalance. Quotas do give governments time to 
find solutions to the basic problem of overproduc- 
tion (or in special cases underconsumption), but 

* Bulletin of Sept. 6, 1954, p. 339. 

"For background, see ibid., Oct. 13, 1958, pp. 579 and 

May 4, 7959 


unless promptly accompanied by production cut- 
backs, which, experience shows, are politically 
difficult to impose, they accomplish little good 
and in the long run can be hannf ul. 

Unless the arrangement covers all producers, it 
allows nonparticipating countries to reap the bene- 
fits of the arrangement and stimulates expansion 
in their production, counteracting the efforts of the 
participants to achieve a better balance of supply 
and demand on the market. If the arrangement is 
complete in its coverage, it has the disadvantage 
of protecting established exporters, including those 
who may be imeconomic, and limiting trade 
expansion for new exporters. 

In any case, such arrangements tend to build up 
stocks in the hands of producers, which sooner or 
later will be seeking markets. Such arrangements 
may, therefore, in the end, prove more destabiliz- 
ing than stabilizing. One comes down to the fact 
that, if the problem is one of an underlying im- 
balance between supply and demand, one must 
either increase demand by artificial means, or de- 
crease production, or give up any idea of price 

"Wliatever device is used to stabilize prices of 
particular products, the additional problem re- 
mains that producers may soon find that they are 
losing customers. Buyers of these commodities 
may either consume less or begin to employ sub- 
stitutes. For example, when lead prices went up in 
the United States, an important outlet for lead, the 
vise as insulation for cables, was inipaii-ed, as in- 
dustry shifted to the use of polyethylene and 
aluminum. Similarly, high cotton prices have 
contributed to the increased use of synthetic fibers. 

Conversely, where prices are free to move down- 
ward in response to market factors, the loss this 
entails is sometimes quickly offset by increased 
sales. The extent to which this occurs varies, of 
course, from commodity to commodity. 

Chapter 2 of the Commodity Survey 1958 con- 
tains a few examples of how lower or higher prices 
affect sales, even in the short term. Thus there was 
a marked expansion of butter consumption in the 
United Kingdom, the Netherlands, and Sweden as 
a result of the lower prices which developed for 
these products in 1957, with butter consumption in 
the United Kingdom exceeding margarine con- 
sumption for the fii-st time since the war. Simi- 
larly, in the case of Malaya and Thailand the fall 

in unit export values for rubber is reported to have 
been "made good, more or less by an expansion of 

As another example, the Survey notes that "as 
is common in the case of cocoa . . . higher prices 
tended to generate resistance." In the United 
States and elsewhere consumption began to fall 
off as cocoa prices moved up. 

Experience With Price Support Programs 

The United States is not without experience in 
the field of price regulation. Its agricultural price 
support programs go back to measures initiated 
approximately 30 years ago. Price supports in the 
case of the basic agricultural commodities have 
been accompanied by attempts to restrict produc- 
tion. Nevertheless, surplus stocks of these com- 
modities have accumulated and are increasing, 
rather than diminishing, owing to increase in 
yields per acre, encouraged by the resulting price 
incentives and made possible by advances in 

These programs, instead of building up markets 
for American cotton, wheat, corn, and tobacco, 
have resulted in the loss of American markets. 
They have at one and the same time stimulated ex- 
pansion of United States and foreign output of 
these i^roducts and priced the United States prod- 
uct out of its share of world markets. As our 
Secretary of Agriculture has often stated, the only 
United States agricultural products that "are in 
trouble — and that have been in trouble" are the 
few that "have looked to unrealistic supports and 
controls rather than to freedom and flexibility for 
their prosperity." In his farm message to the 
Congress of January 29 President Eisenhower 
reviewed this situation and renewed and strength- 
ened his request for farm legislation that will 
reduce the incentive for unrealistic production and 
permit the growth of commercial markets. 

Many other countries also have programs for 
supporting prices of agricultural products. The 
effect on the supply and trade situation in many 
commodities is a matter of growing concern. In 
the case of grains, for instance, the FAO Group on 
Grains points out that, as a direct consequence of 
official intervention, the traditional economic 
forces which formerly shaped the pattern of pro- 
duction and international trade in grains have 
lost much of their influence. This Commission has 


Department of State Bulletin 

heard from the representatives of FAO [Food and 
Agriculture Organization] and GATT [General 
Agreement on Tariffs and Trade] of the attention 
being urgently given by these bodies to this issue 
of agricultural jDolicies which distort ijroduction 
and trade patterns from their normal economic 

There may be excei^tional situations in which 
international regulation of commodity prices or 
trade is found to be a logical and desirable supple- 
ment to widespread national regulation, as in the 
case of sugar and wheat. Or there may be occa- 
sional cases in which restrictive measures are 
found to be necessary, pending an expected re- 
versal in developments or the formulation of a pro- 
gram for effecting basic adjustments in supply or 
demand. The present situation in coffee may be 
cited as an example. But such cases are, in our 
view, exceptional. 

Other Ways of Dealing With Problem 

Wliat other things can be done which help, in a 
sound and constructive way, to deal with the prob- 
lems associated with commodity trade? 

One necessity is, of course, to have adequate 
resources available for any necessary assistance to 
countries in temporary balance-of -payments diffi- 
culties, such as may result from a sharp drop in 
export earnings due to the behavior of commodity 
markets. The members of the Commission are 
familiar with the stej)s now being taken to increase 
the resources and quotas of the International 
Monetary Fund.^ 

There are other things which, having in mind 
the old adage that "a stitch in time saves nine," 
are directed toward treating causes rather than 
effects. There are at least five of these worth 

First among these, as several other speakers 
have noted, are continued efforts to promote eco- 
nomic diversification and gi'owth. Much is al- 
ready being done, both bilaterally and multilater- 
ally, to assist the less developed countries in 
planning, financing, and carrying out their eco- 
nomic development programs. Also, as the less 
developed countries recognize, they themselves can 
do much to further this objective through somid 
fiscal and financial policies and other internal 

° For background, see Hid., Mar. 30, 1959, p. 445. 
May 4, 1959 

A second element in the attack upon causes is 
the reduction or elimination of unnecessary gov- 
ernmental barriei"S to trade. Through the GATT 
in particular we have long sought to reduce tariffs, 
quotas, and other restrictive commercial policy 
measures which distort and restrain trade. Other 
impediments are such things as export taxes and 
unrealistic exchange rates in exporting countries 
and high revenue duties, consumption taxes, and 
restrictive government-trading operations in im- 
porting countries. We have just received a report 
indicating that, in comiection with a GATT study 
of possibilities of expanding the trade of the less 
developed countries, a number of these subjects 
may soon receive specific attention there. 

A third element is further progress in learning 
to moderate the impact of business cycles and to 
maintain an adequate rate of economic growth. 
Much progress has been made in this respect, but 
more can presumably be done. 

Fourthly, there are the things which can be 
done, and are in many cases already being done, 
by the primary exporting countries themselves to 
make their products more sought after on world 
markets and otherwise to make themselves less 
vulnerable to fluctuations on world markets. I 
have in mind, for instance, improvements in the 
organization, procedures, and teclmiques for mar- 
keting their export products, which may be 
brought about through establishment of export 
grade standards, provision for effective inspection, 
and encouragement of greater economy in the 
handling and preparation of shipments for export. 
In this connection, note must be taken of the im- 
portant assistance in these matters which the FAO 
and the independent conmnodity study groups are 
giving; also of the contributions being made in 
many cases by private industry. I have in mind 
also that there may be promising possibilities in 
some cases of reducing production costs and im- 
proving the quality of the product. The replant- 
ing programs of some of the rubber-producing 
comitries are a case in point. 

There are also the possibilities of fiscal and 
financial policies which can minimize the difficul- 
ties arising from instability of export earnings, 
such as the Brazilian delegate, Mr. [Octavio A. 
Dias] Carneiro, has drawn to our attention. 

The fifth element in the attack upon causes is 
the relatively simple one of keeping goverimients 


as well informed as possible of what lies ahead in 
terms of supply and demand and the technological 
advances which periodically alter the outlook. 
Many organizations are making important contri- 
butions in this respect, but here again more can 
be done and the CICT, without intruding into the 
responsibilities of these other bodies, can clearly 
make a contribution in this field. 

This approach which I have outlined is predi- 
cated upon the fact that the demand for primary 
products is growing and will continue to grow, 
due to population increases, rising standards of 
living, and the economic development of Asia, 
Africa, and Latin America. A sound commodity 
policy, international or national, should, we think, 
be tailored to this fundamental fact and allow 
commodity trade to benefit to the fullest extent 
possible from these natural factors of growth. 

Some worthwhile suggestions for the work pro- 
gram of the Commission have been put forward 
by other delegations, such as the Canadian sug- 
gestion for a study relating to business cycles and 
the suggestion made by Brazil and Argentina, 
among others, that attention be given to national 
measures which tackle the problems of market in- 
stability in one way or another. We shall listen 
with interest to the views expressed in the balance 
of this debate and in the consideration of agenda 
item 8 ' and are confident that a useful progi-am 
will be evolved. 

We see many illustrations over the years of the 
fact that international discussion of common 
problems brings governments closer together in 
their views. A recent example which the United 
States notes with gi'eat appreciation is the an- 
nouncement to this Commission that Brazil, as a 
major revision of its international commodity 
policy, agrees that the commodity-by-commodity 
approach appears to be the only practical ap- 
proach. I believe that the difference among gov- 
ernments over the issues of commodity trade, 
which have seemed to loom rather large at times, 
will continue to lessen as the Commission moves 
forward with its work. 

I personally feel also that more progress is being 
made in coping with the problems of commodity 
trade, including market instability, than may ap- 
pear on the surface. We are too close to the pres- 
ent to see this clearly, but as we look back on this 

period in a matter of a few more years I believe 
we will see that important foundations have been 
laid for gradual improvements in the conditions 
of commodity trade and for minimizing the conse- 
quences of adverse conditions. I trust we will 
find that high among these gains has been the 
decision to reconstitute the Commission with 
broad and realistic terms of reference. 

The United States is sincerely interested in join- 
ing with other governments in studying the prob- 
lems of commodity trade, both on the commodity- 
by-connnodity basis which is necessary if progi'ess 
in alleviating the special diflSculties of particular 
situations is to be made and in the more general, 
comprehensive terms which are open to and appro- 
priate for the CICT. We have faith that further 
progress in dealing with commodity problems 
can and will be made, by ways wliich will not do 
violence to the principles of sound economics — 
which none can ignore except at their peril — and 
yet will significantly reduce the impact of world 
market movements upon the economies of the less 
developed countries. 

U.S. Delegation Submits Report 
on First Meeting of IMCO 

Press release 269 dated April 17 

Millard G. Gamble, chairman of the U.S. dele- 
gation to the First Assembly of the Intergovern- 
mental Maritime Consultative Organization 
(IMCO) at London January 6-19, 1959, on April 
17 transmitted to the Acting Secretary of State the 
official report of the delegation.^ 

IMCO is the latest of the specialized agencies of 
the United Nations. It was established to per- 
form functions for shipping somewhat similar to 
those of ICAO (International Civil Aviation Or- 
ganization) for air transport. Although the 
IMCO convention was written in 1948 at the 
United Nations Maritime Conference at Geneva, 
it did not come into force until March 17, 1958, 
due largely to disagreement concerning whether 
the Organization should be limited to technical 
and navigational functions or whether it should 
also have economic responsibilities. 

' Agenda item 8 deals with the future program of worli. 

' Copies are available upon request from the Shipping 
Division, Office of Transport and Communications, Depart- 
ment of State, Washington 25, D.C. 

Department of Slate Bulletin 

The agenda of the January meeting, being the 
first, was limited to organizational matters such 
as the establishment and scheduling of meetings of 
subsidiary bodies, the nature and scope of the 
initial work program, budgetary problems and 
cost sharing. 

The delegation's report points out that many 
decisions of the conference were taken in accord- 
ance with U.S. proposals, made either at the Jan- 
uary conference or previously adopted by the 
IMCO Preparatory Committee at its meeting in 
June 1958. Among the important U.S. positions 
adopted were the limited initial work program, 
small staff and budget, agreement on a smaller 
U.S. cost-sharing base than is in effect in the 
United Nations, and the election of Japan, Italy, 
and West Germany to seats on the IMCO Council 
or governmg body. 

The delegation's report states that in only one 
instance was the delegation unable to achieve, 
either wholly or substantially, its objectives. In 
the case of the election of the 14 members of the 
Maritime Safety Committee, the delegation sought 
unsuccessfully to secure seats for Liberia, Panama, 
China, and Israel. In the case of Liberia and 
Panama, which became members of IMCO at the 
last moment and just as the IMCO Assembly was 
meeting, the United States and a number of other 
countries followed an interpretation of the IMCO 
convention which it has believed to be correct 
since 1948, i.e., that the first eight member coun- 
tries to be represented on the Maritime Safety 
Committee must be those having an important in- 
terest in maritime safety and having under their 
registries the largest gross tonnage of shipping. 

When it became evident that a number of dele- 
gations intended to contest this interpretation, the 
United States proposed a compromise whereunder 
the election would be postponed until the second 
IMCO Assembly meeting and a provisional body 
would perform the Committee's functions during 
the interim. According to the report, "The United 
States compromise proposal, advanced in an effort 
to postpone the issues until after mature considera- 
tion had been given, was defeated by a margin of 
two votes, but the United States gained great pres- 
tige in the eyes of many delegations by reason of 
this sincere effort to compose the differences of 
oj^inion and avoid dissension." 


Current Actions 


Automotive Traffic 

Convention on road traffic with annexes. Done at Geneva 
September 19, 1949. Entered into force March 26, 1952. 
TIAS 2487. 

Notification by United Kingdom of application to: 
Gambia, March 25, 1959. 
Convention concerning customs facilities for touring. 
Done at Nevr York June 4, 19.54. Entered into force 
September 11, 1957. TIAS 3879. 

Notification by the United Arab Republic of application 
( iv-ith reservation) to: Syrian Province, March 26, 
Customs convention on temporary importation of private 
road vehicles. Done at New York June 4, 1954. En- 
tered into force December 15, 1957. TIAS 394.3. 
Notification by the United, Arab Republic of application 
to: Syrian Province, March 26, 1959. 

Postal Services 

Universal postal convention with final protocol, annex, 
regulations of execution, and provisions regarding air- 
mail with final protocol. Done at Ottawa October 3, 
1957. Entered into force April 1, 1959. TIAS 4202. 
Ratifications deposited: Iceland, November 27, 1958; 
Jordan, March 2, 19.59; Belgium (including Belgian 
Congo and Ruanda-Urundi), March 5, 1959; Finland, 
March 6, 1959. 


El Salvador 

Agreement amending the Army Mission agreement of 
September 23, 1954, as extended (TIAS 3144 and 4146), 
and the Air Force Mission agreement of November 21, 
1957 (TIAS 3951). Effected by exchange of notes at 
San Salvador March 16 and 31, 1959. Entered into 
force March 31, 1959. 


Agricultural commodities agreement under title I of the 
Agricultural Trade Development and Assistance Act 
of 1954, as amended (68 Stat. 455 ; 7 U.S.C. 1701-1709), 
with memorandum of understanding and exchange of 
notes. Signed at Paris March 21, 1959. Entered into 
force March 21, 1959. 


Agreement providing for duty-free entry into Ghana and 
exemption from internal taxation of relief supplies and 
packages. Effected by exchange of notes at Accra 
April 9, 1959. Entered into force April 9, 1959. 


Agreement amending the Air Force Mission agreement 
of October 27, 1943, as amended and extended (57 
Stat. 1100, TIAS 2578 and 33.39). and the Army Mission 
agreement of December 10, 1943, as amended and ex- 
tended (57 Stat. 11S4, TIAS 2578 and 3345). Effected 
by exchange of notes at Asuncion February 20 and 
March 30, 1959. Entered into force March 30, 1959. 

May 4, 1959 




The Senate on April 8 confirmed the following nomi- 
nations : 

Ellis O. Briggs to be Ambassador to Greece. (For 
biographic details, see press release 199 dated March 18. ) 

Carl W. Strom to be Ambassador to Bolivia. (For 
biographic details, see press release 201 dated March 19.) 


Department and 

Recent Releases 

For sale hy the Superintendent of Documents, U.S. Oov- 
ernment Printing Office, Washington 25, D.C. Address 
requests direct to the Stiperintendent of Documents, ex- 
cept in the case of free publications, which may ie ob- 
tained from the Department of State. 

Basic Documents— UN Educational, Scientific and Cul- 
tural Organization. Pub. 6688. International Organiza- 
tion and Conference Series IV, UNESCO 35. x, 49 pp. 

A pamphlet containing the basic documents instrumental 
in the creation of UNESCO, a list of the member states, 
and information pertaining to the U.S. National Commis- 
sion for UNESCO. 

Foreign Service Institute. Pub. 6747. 
Foreign Service Series 84. 24 pp. 15«(. 

Catalog and general information concerning the Institute 
and its Schools of Foreign Affairs and Languages as of 
January 1959. 

The Communist Economic Threat. Pub. 6777. European 
and British Commonwealth Series 53. 22 pp. 15?(. 

The present publication is a condensation of the pamphlet 
entitled "The Slno-Soviet Economic Offensive in the Less 
Developed Countries" and includes the most recent data 
available regarding the Communist program of economic 

NATO— The First Ten Years: 1949-1959. Pub. 6783. In- 
ternational Organization and Conference Series I, 40. 44 
pp. 25<t. 

A pamphlet describing the organization and accomplish- 
ments of NATO during the first 10 years of its existence. 

Mutual Security in Action — ^Tunisia. 

and Middle Eastern Series 36. 12 pp. 

Pub. 6784. Near 
Limited distribu- 

This fact sheet tells something of this North African 
nation, its people, the nature of the U.S. economic assist- 
ance program, and the objectives and accomplishments of 
that program to date. 

Some Right and Wrong Thinking About American Foreign 
Assistance. Pub. 6790. Far Eastern Series 79. 13 pp. 
Limited distribution. 

An address delivered by Thomas E. Naughten, Director, 
U.S. Operations Mission in Thailand, before the American 
Association at Bangkok, on January 27, 1959. 

Air Transport Services. TIAS 4158. 7 pp. 10«*. 

Agreement between the United States of America and 
Japan, amending agreement of August 11, 1952, as supple- 
mented and amended. Exchange of notes — Signed at 
Tokyo January 14, 1959. Entered into force January 14, 


Development Loan Fund — Use of Chinese Currency Re- 
payments. TIAS 4162. 6 pp. 54. 

Agreement between the United States of America and 
China. Exchange of notes — Dated at Taipei December 
24, 1958. Entered into force December 24, 1958. 

Weather Stations — Cooperative Program at Guayaquil. 

TIAS 4164. 3 pp. 5^. 

Agreement between the United States of America and 
Ecuador, extending agreement of April 24, 1957. Ex- 
change of notes — Signed at Quito November 18 and De- 
cember 30, 1958. Entered into force December 30, 1958. 

Surplus Agricultural Commodities. TIAS 4165. 6 pp. 54. 

Agreement between the United States of America and 
Finland^Signed at Helsinki December 30, 1958. Entered 
into force December 30, 1958. With related exchange 
of notes. 

Surplus Agricultural Commodities. TIAS 4166. 3 pp. 5^. 

Agreement between tlie United States of America and 
Ecuador, amending agreement of Jime 30, 1958. Exchange 
of notes— Dated at Quito December 9 and 12, 1958. En- 
tered into force December 12, 1958. 

Surplus Agricultural Commodities. TIAS 4167. 3 pp. 5^. 

Agreement between the United States of America and 
Italy, amending agreement of October 30, 1956, as 
amended. Exchange of notes — Signed at Rome June 30, 
1958. Entered into force June 30, 1958. 

Utilities Claims Settlement Between the Unified Com- 
mand and the Republic of Korea. TIAS 4168. 15 pp. 10^. 

Agreement between the United States of America and the 
Republic of Korea — Signed at Seoul December 18, 1958. 
Entered into force December 18, 1958. Operative retro- 
actively July 1, 1957. With related exchange of letters. 

Surplus Agricultural Commodities. TIAS 4169. 3 pp. 54- 

Agreement between the United States of America and 
Spain, amending agreement of October 23, 1956, as 
amended. Exchange of notes — Signed at Madrid June 12 
and July 30, 1958. Entered into force July 30, 1958. 

Northwest Atlantic Fisheries. TIAS 4170. 5 pp. 54- 

Protocol between the United States of America and Other 
Governments, amending convention of February 8, 1949 — 
Dated at Washington June 25, 1956. Entered into force 
January 10, 1959. 

Mutual Defense Assistance — Loan of United States Naval 
Vessels to Japan. TIAS 4171. 6 pp. 5ii'. 

ProcSs-verbal between the United States of America and 
Japan, relating to agreement of May 14, 1954 — Signed at 
Tokyo Jauuai-y 6, 1959. With related exchange of notes — • 
Dated at Tokyo January 6 and 9, 1959. 


Department of Slate Bulletin 

May 4, 1959 


Vol. XL, No.l036 

Agriculture. Wise Distribution of U.S. Food Sur- 
pluses in Latin America (Cabot) 636 

American Republics 

American Republics Draft Agreement for Inter- 
American Development Bank (Upton, text of 
resolution) 646 

U.S. Ambassadors in Caribbean Area Meet To Ex- 
change Views (text of final statement) .... 634 

Wise Distribution of U.S. Food Surpluses in Latin 
America (Cabot) 6.36 

Aviation. U.S. Rejects Soviet Curb on Flights in 

Berlin Air Corridor (texts of notes) 632 

Bolivia. Strom confirmed as ambassador .... 6.'54 

Congress, The. The Development Loan Fund : An 

Investment in Peace and Progress (Dillon) . . 638 

Department and Foreign Service 

Confirmations (Briggs, Strom) 6.^4 

President Eisenhower Accepts Resignation of Secre- 
tary Dulles (Eisenhower, Dulles) 619 

U.S. Ambassadors in Caribbean Area Meet To Ex- 
change Views (text of final statement) .... 634 

Economic Affairs 

American Republics Draft Agreement for Inter- 
American Development Bank (Upton, text of 
resolution) 646 

Confidence in the Continuing Growth and Strength 
of America (Eisenhower) 620 

Developing the Rule of Law for the Settlement of 

International Disputes (Nixon) 622 

Situation of International Trade in Primary Com- 
modities (Mann) 648 

Wise Distribution of U.S. Food Surplu.s€s in Latin 

America (Cabot) 636 

Europe. Heads of European Communities To Visit 
Washington .... - 634 


The Problem of Berlin and Germany (Murphy) . . 628 

U.S. Rejects Soviet Curb on Flights in Berlin Air 

Corridor (texts of notes) 632 

Greece. Briggs confirmed as ambassador .... 654 

International Information. U.S. and U.S.S.R. 
Agree on Exchange of Performing Artists (text 
of agreement) 633 

International Law. Developing the Rule of Law for 
the Settlement of International Disputes 
(Nixon) 622 

International Organizations and Conferences 

American Republics Draft Agreement for Inter- 
American Development Bank (Upton, text of 
resolution) 646 

Calendar of International Conferences and Meet- 
ings 643 

Heads of European Communities To Visit Washing- 
ton 634 

Situation of International Trade in Primary Com- 
modities (Mann) 648 

U.S. Delegation Submits Report on First Meeting 
of IMCO 652 

Mexico. Visit of President of Mexico Postponed 
Until Autumn 637 

Mutual Security 

The Development Loan Fund : An Investment in 
Peace and Progress (Dillon) 638 

U.S. Investment Guarantee Program Extended to 

Sudan and Tunisia 687 

Philippines. 17th Anniversary of Bataan (Elsen- 
hower) 627 

Presidential Documents 

Confidence in the Continuing Growth and Strength 

of America 620 

President Eisenhower Accepts Resignation of Secre- 
tary Dulles 619 

17th Anniversary of Bataan 627 

Publications. Recent Releases 654 

Sudan. U.S. Investment Guarantee Program Ex- 
tended to Sudan and Tunisia 637 

Treaty Information. Current Actions 653 

Tunisia. U.S. Investment Guarantee Program Ex- 
tended to Sudan and Tunisia 637 


The Problem of Berlin and Germany (Murphy) . . 628 
U.S. and U.S.S.R. Agree on Exchange of Perform- 
ing Artists (text of agreement) 633 

U.S. Rejects Soviet Curb on Plights in Berlin Air 

Corridor (texts of notes) 632 

United Nations. Current U.N. Documents . . . 645 
Name Index 

Briggs, Ellis O . . . 654 

Cabot, John M 636 

Dillon, Douglas 638 

Dulles, Secretary 619 

Eisenhower, President 619, 620, 627 

Lopez Mateos, Adolfo 637 

Mann, Thomas C 648 

Murphy, Robert 628 

Nixon, Vice President 622 

Strom, Carl W 654 

Upton, T. Graydon 646 

Check List of Department ofjState 
Press Releases: April 13-19 

Press releases may be obtained from the News 

Division, Department of State, Washington 25, D.C. 

Release issued prior to April 13 which appears 

in this issue of the Bulletin is No. 248 of April 6. 

Educational exchange (Europe, Mid- 
dle East). 
Rubottom : "Inter-American Progress 

Through the OAS." 
Becker : "Comments on the Responsi- 
bility of States." 
Chiefs of Mission Conference, San 

Murphy : Notre Dame Club of Chicago. 
Note to U.S.S.R. on air corridors in 

Presidents of European communities 

to visit U.S. 
Exchange agreement with U.S.S.R. 
Investment guarantee program (Su- 
dan, Tunisia). 
IMCO delegation report. 
Barrows: "U.S.- Vietnamese Coopera- 
tion — the ICA Program Since 1955." 

*Not printed. 

tHeld for a later issue of the Bulletin. 






















A -ir it ir 

•Ct * -it 

n^ i- n Vr t /i 




4(i^ <^ 










Govern - — 


Washington 25, D.C. 

SE, $300 





April 4, 1959, marked the 10th anniversary of the signing of 
the North Atlantic Treaty, which links the United States with 
14 other free nations for our mutual security and progress. 

This new Department of State publication, prepared in con- 
junction with the anniversary observance, describes the aims and 
achievements of NATO in its first decade of existence. 

The colorful 44-page pamphlet, prefaced by a message from 
President Eisenhower, contains a series of questions and answers 
on NATO's purpose, organization, financing, and relationship to 
other international organizations of the free world. The pub- 
lication is illustrated with drawings and with an organization 

Copies may be purchased from the Superintendent of Docu- 
ments, U.S. Gover-nment Printing Office, Washington 25, D.C, 
for 25 cents each. 

Publication 6783 

25 cents 

Order Form , 

Please send me copies of A'^ TO, 1949-1959, THE FIRST TEN YEARS 

0: Supt. of Documents 
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(cash, check, or money j> > ■ 

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Vol. XL, No. 1037 

May 11, 1959 


Assistant Secretary Rabottom 659 


by Loftus Becker, Legal Adviser 666 


PEACE • Remarks by President Eisenhower 670 


ICA PROGRAM SINCE 1955 • by Uland Barrows . . 674 


RETROSPECT • Article by Wallace W. Atwood, Jr. . . . 682 

For index see inside hack cover 


Vol. XL, No. 1037 • Pubucation 6816 
May 11, 1959 

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Inter-American Progress Through the Organization 
of American States 

hy Roy R. Ruhottom, Jr. 

Assistant Secretary for Inter-American Affairs ^ 

It is most appropriate for the Council on World 
Aifairs of Indianapolis to dedicate this program 
on April 14 to inter- American affairs. This oc- 
casion is one of hundreds of events which are tak- 
ing place throughout the 21 Republics of America 
in celebration of Pan American Day. Through 
the years the attention to Pan American Day has 
grown in public support and participation to the 
point where increasingly it is becoming in itself 
a demonstration of the widespread feeling of good 
neighborliness and interdependence which exists 
among the peoples of this continent. 

In keeping with the occasion I have chosen 
what seems to me to be the most suitable of all 
subjects discussed today, namely, the Organiza- 
tion of American States. As most of you may 
know, April 14 is the anniversary of the found- 
ing of the Organization of American States. It 
was on that day in 1890 that the First Interna- 
tional Conference of American States successfully 
concluded its work in Washington and established 
the Commercial Bureau of the American Repub- 
lics. This small agency has grown without in- 
terruption, bearing different names and going 
through various stages of development until it 
blossomed forth in what is now known as the 
Organization of American States. 

It is an interesting fact that throughout most 
of its 69 years the Organization existed without 
benefit of any formally ratified treaty among the 

'Address made before the Indianapolis Council on 
World Affairs at Indianapolis, Ind., on Apr. 14 (press re- 
lease 261 dated Apr. 13). 

American states. The present charter of the Or- 
ganization was not drafted imtil 1948 and did not 
come into legal effect mitil 3 years later. 

This simple fact seems to me to be highly sig- 
nificant to an understanding of the Organization 
of American States, for it demonstrates as well as 
anything else that the OAS is deeply rooted in the 
basic relationship among the American Repub- 
lics. Its strength and its validity depend not so 
much upon what has been written down on paper, 
important as its treaty obligations have come to be. 
Its real significance is its expression of the un- 
derlying unity and desire for cooperation that has 
existed for more than a century among the inde- 
pendent countries of the New World. 

The colonizers of the Latin American countries 
and those who settled the present United States 
came from different parts of Europe, spoke dif- 
ferent languages, and demonstrated significant 
differences in their political and social institu- 
tions. However, under the influence of the New 
World they shared certain experiences which gave 
them a sense of common destiny. The people of 
both the English-speaking and Spanish-speaking 
countries of America evidenced a strong desire to 
build in the New World a better civilization than 
had existed in Europe, a civilization incorporating 
wider human freedom and better conditions of 
life. To achieve this objective they found it nec- 
essary to win their independence through revolu- 
tion. This common experience was the genesis of 
the spirit of a unified America dedicated to the 
defense of its independence and the development 
of a better human life. 

May 11, 1959 


The great Latin American Liberator, Simon 
Bolivar, sensed this destiny of the Americas. In 
1826 lie called representatives of tlie Latin Ameri- 
can countries and the United States together in a 
meeting at Panama. The treaty of confederation 
which this conference drafted was never ratified. 
Like other great leaders, Bolivar was far in ad- 
vance of his fellow men in his thinking and under- 
standing. However, tlie ideas he advocated at 
that time persisted throughout the century and in 
one form or another have found expression in 
the present OAS. 

Guiding Principles of American Republics 

During tlie first period of the life of the Organi- 
zation of American States a major achievement 
was the development of certain principles which 
have come to guide the relations among the 
American Kepublics. These principles are not 
extraordinary for their content, since, like other 
important moral precepts, they have been ex- 
pressed and advocated on many occasions. To 
illustrate, there is the principle that all states be- 
longing to the OAS, regardless of their respective 
size, are juridically equal. Another principle 
now incorporated in the inter- American rule of 
law is that states must settle their disputes by 
peaceful means. This simple rule, which is re- 
flected in the aspirations of all mankind, has per- 
liaps been given more effective application among 
the American Republics than anywhere else in the 

Perhaps the most important single principle 
which has been developed through the inter- 
American system is that of nonintervention. This 
logical corollary of the idea that all states are 
equal provides that no state may intei'vene in the 
internal or external affaire of any other state. The 
intervention by strong governments in the affairs 
of weaker nations had long been an accepted in- 
ternational practice. The United States had re- 
sorted to it frequently in Latin America during 
the late 19th and early 20th centuries. The re- 
sentment of the Latin American countries against 
such acts, and their constant fear that they would 
be repeated, almost threatened the very existence 
of an inter- American regional system. When in 
1933 the United States accepted the principle of 
nonintervention, a new era of mutual confidence 

and cooperation opened up before the American 

Let me speak as clearly as possible at this point. 
This very doctrine, negative sounding in name, 
has contributed positively to the strengthening of 
democracy and freedom in the hemisphere. The 
record speaks for itself. 

As the clouds of World War II darkened the 
horizon in the late thirties, the American Repub- 
lics drew closer together. They established tlie 
system of consultation on matters of mutual in- 
terest. Tliey intensified their cooperation in prac- 
tical programs dedicated to the maintenance of 
the security of the hemisphere and the promotion 
of better economic, social, and cultural conditions 
of life. 

It was, therefore, with the benefit of a long and 
practical experience that the delegates of the 
American Republics meeting in Bogota in 1948 
set forth in the charter which they, drafted for 
the OAS the statement that its purpose was to 
strengthen the peace and security of the conti- 
nent and to promote its economic and cultural de- 
velopment. Let us look for a moment at how the 
OAS is meeting its responsibilities with respect 
to these two fundamental purposes that so vitally 
affect the welfare of each of its 21 member states. 

Cooperative Action for Regional Defense 

The security of the American Continent has 
long been a major objective of the United States. 
It was the objective of one of the first great pro- 
nouncements of our foreign policy, namely, the 
Monroe Doctrine. For more than a century after 
the expression of the Monroe Doctrine, the United 
States assumed a major responsibility for assuring 
the continued independence and security of the 
countries of the New World. 

Beginning with World War II, however, it be- 
came clear to the United States and its neighbors 
in Latin America that the responsibility for pro- 
tecting the security of the Western Hemisphere 
had to be shared by agreement and cooperative 
action among all the independent republics. This 
idea received effective expression during World 
War II. It was finally incorporated in the Treaty 
of Rio de Janeiro signed in 1947, which sets forth 
the basic security provisions of the OAS. Tliis 
treaty was the first of the regional defense treaties 
entered into by the United States, and in im- 


Department of State Bulletin 

portant respects it served as a model for the North 
Atlantic Treaty and later regional pacts. 

Under the Rio Treaty an armed attack against 
any American state is considered an attack against 
all American states and all are obligated to go to 
the assistance of the victims. Moreover, either 
an armed attack or any other act or threat of 
aggression that menaces the political independ- 
ence or territorial integrity of an American state 
can justify consultation among the 21 member 
states to agree upon the collective measures that 
should be taken. 

The Rio Treaty, therefore, provides a firm 
foundation for the solidarity of the American Re- 
publics in the defense of the continent. Upon this 
foundation rests the policy of the U.S. Govern- 
ment in its military cooperation with the Latin 
American countries. A major feature of this co- 
operative program involves U.S. military train- 
ing missions. Although some of these missions 
were instituted as far back as 1925, their func- 
tions now are related to preparations for hemi- 
spheric defense under the Rio Treaty. Currently 
there are missions in 18 countries — in each in- 
stance at the request of the host government. 
They serve in a strictly advisory capacity and do 
not become involved in local military operations 
or perform command functions. 

The Rio Treaty makes no provision for any 
standing forces under the control of the OAS. It 
does, however, establish the responsibility of every 
American Republic to cooperate for the defense 
of the continent. Through the Inter-American 
Defense Board plans for continental defense are 
worked out that would form the basis for mili- 
tary cooperation in time of need. This need 
could arise at some unforeseen moment. With 
the issues so clearly drawn between the Commu- 
nist world and the free world, it is reassuring 
to know that we have such close security ties to 
prevent aggression against any country in the 

The Rio Treaty does not disregard the problem 
of maintaining peace and security within the con- 
tinent as well as security from outside attack. 
The treaty has now been brought into active op- 
eration four times with respect to disputes be- 
tween American states. In all cases the prompt 
and energetic action of the OAS quickly termi- 
nated such fighting as had broken out and led to 

an eventual peaceful solution of the issue which 
had prompted the conflict. 

Honduras-Nicaragua Border Dispute 

The most recent of these cases was a longstand- 
ing border dispute between Honduras and Nica- 
ragua 2 years ago. Fighting had actually broken 
out along the disputed section of the frontier 
wlien both Governments brought the case to the 
OAS and called for the application of the Rio 
Treaty.^ The Council, in accordance with the 
procedures set fortli in the treaty, called for a 
meeting of foreign ministers but immediately 
took certain decisions provisionally, as it is au- 
thorized to do. An investigating committee of 
five countries was appointed and within 24 hours 
was on its way to the scene of the conflict. This 
group visited both countries and immediately 
brought the influence of the entire inter-Ameri- 
can community to bear upon the contending par- 
ties. A cease-fire was first arranged. With the 
aid of military advisers provided by various 
member governments of the OAS, a quick analy- 
sis of the deployment of troops on both sides of 
the border was made and a plan was drawn up 
to provide for the withdrawal of forces on both 
sides. After 2 days of intensive negotiation with 
both parties, the OAS committee was able to se- 
cure the agreement of each to that plan. 

After the fighting had stopped and a practical 
system had been established to prevent a further 
contact between the military forces, the situation 
soon reached tlie point where more serious politi- 
cal negotiations could be encouraged. With the 
continued encouragement of the OAS, partic- 
ularly in the Council meeting in Washington, a 
pact was drawn up between the two Governments 
under which they agreed to take their dispute to 
the International Court of Justice,^ where the 
case is now being litigated. Thus, through the 
prompt action of the OAS, in accord with sacred 
treaties, an incipient inter-American war had 
been nipped in the bud. 

A few months ago, when both Governments 
faced problems arising out of the activities of 
political refugees in each country, the Govern- 

' For background, see Bulletin of May 20, 1957, p. 811. 
' IMd., Aug. 12, 1957, p. 273. 

May n, 1959 


ments of Honduras and Nicaragua resorted again 
to the spirit of the OAS and its peaceful solu- 
tion of international disputes. On February 26 
they signed in the presence of important digni- 
taries of the OAS a new treaty prescribing meas- 
ures under which they would attempt to control 
political refugees and minimize the problems to 
their international relations which might result 
from their activities. 

Present Tensions in Caribbean Area 

It has been said with justice, I believe, that, as 
a result of the repeated demonstrations given by 
the American Republics of their desire to main- 
tain peace and security and the experience show- 
ing that the OAS provides effective means for 
stopping disputes and promoting peaceful settle- 
ments, it is now inconceivable that war should 
break out between American Republics. I be- 
lieve this to be true. However, I would be remiss 
if I did not say that the present situation of ten- 
sion among countries in the Caribbean area puts 
the OAS again to a severe test of its capacity to 
maintain peace and security. 

As in former years, the present international 
tensions of the Caribbean are directly related to 
the activities of political exiles and refugees who, 
while enjoying territorial asylum in foreign coun- 
tries, direct their efforts toward overthrow of the 
governments in their own countries. Such situ- 
ations are neither new nor confined to any one po- 
litical group. They have at various times been 
conducted by those labeled as "dictator haters" 
and those labeled as "dictator mongers." 

Under various treaties, notably the charter of 
the OAS and the Inter-American Convention on 
the Rights and Duties of States in the Event of 
Civil Strife, the American Republics are obligated 
to prevent the use of their territory as a base for 
armed bands attempting the overthrow of other 
recognized governments and are enjoined from 
any form of intervention in the internal affairs of 
other countries. They are furthermore obligated 
imder the Treaty of Rio de Janeiro to go to the 
assistance of any comitry that suffers an armed 

Under the circumstances I cannot believe that 
any American state would place in jeopardy the 
hard-won achievements of the inter-American 
system in the maintenance of peace and security 
by permitting violations of these basic treaty obli- 

gations to take place. This view, I am happy to 
say, is shared by the preponderant weight of pub- 
lic ojjinion througliout the American Republics. 
Experience has demonstrated that such interven- 
tionist efforts not only violate the principles of the 
inter- American system of peace and security ; they 
are also self-defeating. As that outstanding Latin 
American statesman and former Secretary Gen- 
eral of the OAS, President Alberto Lleras 
Camargo of Colombia, recently said. 

Every effort at international intervention has per- 
mitted governments which violate human rights to arouse 
among their peoples a wave of nationalism which cloaks, 
protects, and consolidates violations that are carried out 
against the essential rights of the human person. 

Democracy must come from within each state and 
people ; it cannot be imposed from outside. 

In various quarters the question has been raised 
as to why the OAS has not taken up the present 
situation of international tension in the Carib- 
bean with a view to restoring a greater degree of 
international confidence in that area. The answer 
is simple. Excellent though the inter-American 
procedures for the maintenance of peace and se- 
curity are, there exists an important gap in the 
powers of the OAS. In order to invoke the 
Treaty of Rio de Janeiro either an actual attack 
or threat of aggression must exist, or the territory 
or sovereignty or political independence of an 
American state must be affected by a fact or situ- 
ation endangering the peace and security of 
America. The Council of the OAS is not em- 
powered to take cognizance of an international 
dispute except by invoking that treaty. The In- 
ter-American Peace Committee, the other prin- 
cipal agent of the OAS in the field of peaceful 
relations, has no authority to take an initiative in 
regard to a controversy between states; it must 
wait until both parties agree to bring their dispute 
before it. Thus the OAS is in a sense left im- 
potent in the face of international tension and 
must await the outbreak of a controversy before 
it can exercise even a moderating influence. I be- 
lieve this situation merits the serious study of the 
American governments at this stage, with a view 
to deciding whether some further improvement 
may not be advisable in the inter- American peace 
system, of which we are rightly so proud. 

Role of OAS in Economic Affairs 

The structure, and certainly the operating tech- 
niques, of our regional organization should be kept 


Department of Slate Bulletin 

under constant review. New challenges and op- 
portunities regularly appear before us. This has 
been particularly true in the last few years with 
respect to economic affairs. It has been customary 
in some quarters recently to question the role of 
the OAS in economic affairs, asking why it has 
not solved economic problems as effectively as it 
has solved the problem of maintaining peace and 
security. Let's look at the record. 

The very fact that the OAS has succeeded in 
developing so firm a base for peace and security 
among the American nations constitutes an im- 
portant prerequisite to economic progress in the 
Americas. Conflicts and wars amongst the Amer- 
ican states would gravely obstruct efforts to im- 
prove their economies. Conversely, every time a 
conflict is resolved and confidence in the peace 
system of the Americas grows, it becomes possible 
for the American nations to devote their energies 
and resources more fully to constructive peaceful 

Furthermore, the OAS has in fact carried out 
important activities in the economic and social field 
which are often overlooked and sometimes neg- 
lected. The teclinical cooperation program of the 
OAS, planned by and carried out under the su- 
pervision of the Inter-American Economic and 
Social Council, is a modest but significant step 
contributing to the training of badly needed tech- 
nical personnel throughout the American Eepub- 
lics. This program is capable of expansion to any 
proportions the governments wish consistent with 
the realities of effective administration. 

The Inter- American Economic and Social Coun- 
cil and the Department of Economic and Social 
Affairs of the Pan American Union, which pro- 
vides the technical secretariat, have produced im- 
portant analyses of inter-American economic 

In the economic and social field many important 
activities are being carried out through the spe- 
cialized organizations of the OAS, such as the 
Pan American Health Organization, the Inter- 
American Institute of Agricultural Sciences, and 
the Pan American Institute of Geography and 
History, to name a few. The expansion of the 
activities of the Inter-American Institute of Agri- 
cultural Sciences was one of the major recom- 
mendations of the Inter- American Committee of 
Presidential Representatives, called at the initia- 
tive of President Eisenhower in 1956-57, and now 

awaits appropriate action by the member gov- 

Operation Pan America 

The past year, however, has seen a concentrated 
effort to broaden the scope of inter- American co- 
operation in economic fields through the Organi- 
zation of American States. An opportunity to 
consider these problems in the broadest continental 
sense was given by the initiative of the President 
of Brazil. Last May, President Kubitschek wrote 
to President Eisenliower* concerning the desir- 
ability of reviewing the strength of our hemi- 
sphere relations and determining what measures, 
particularly in the economic field, will be desirable 
to give added vitality to the solidarity and co- 
operation of the American Republics. As a result 
of President Eisenhower's cordial response and 
the favorable reaction that was evoked through- 
out the other American nations, a renewed effort 
to work out additional measures of economic co- 
operation was launched. The Brazilian Presi- 
dent gave this effort the name of "Operation Pan 

Last September the Foreign Ministers of the 
American Republics meeting informally in Wash- 
ington agreed to establish a Special Committee 
under the aegis of the OAS to work out the fur- 
ther measures of economic cooperation under the 
broad concept of Operation Pan America.' This 
Committee has met once in Washington and will 
meet at the end of this month again in Buenos 

As it now appears, there will emerge from this 
Buenos Aires conference a number of important 
decisions covering a wide variety of economic ac- 
tivities. They will in no sense pretend to resolve 
all economic problems of the hemisphere. They 
should, however, constitute a concrete and positive 
achievement in two respects: (1) to reassure the 
peoples of all the American Republics of the sin- 
cere and strong desire of all the American states 
to work together for the economic progress of the 
entire OAS family; and (2) to establish the struc- 
ture of a more effective cooperation with respect 
to certain basic problems. 

First, the OAS will undertake a broader and 

* For text of President Kubitschek's letter and President 
Eisenhower's reply, see ihid., June 30, 1958, p. 1090. 
' For text of communique, see ibid., Oct. 13, 1958, p. 575. 

May 71, 7959 


more intensified program of analyzing with indi- 
vidual countries the specific economic problems 
they face at the present stage of development. 
Each Latin American coimtry which wishes to 
avail itself of this sei'vice will thereby be enabled 
to obtain a clearer and better picture of the na- 
ture of its i^roblems and, therefore, of the steps 
it should take to encourage the forces of economic 
progress to get under way more rapidly. 

Second, the American nations will have at their 
disposal a new financial institution, the charter 
of which has been drafted during the past 3 
months by a special committee convened for that 
purpose by the Inter- American Economic and So- 
cial Council." One of the most important func- 
tions of the new institution will be to assist the 
member governments in formulating their eco- 
nomic plans and in preparing specific projects that 
will merit sympathetic consideration for financing. 

Third, additional sources of both public and 
private capital will become available. The first 
and most significant step forward in this respect 
is the establisliment of the Inter- American Devel- 
opment Bank, to which I have just referred. It 
will have initially a total capital of $1 billion, 
which may be increased to $1.5 billion. Its ex- 
clusive attention to Latin America will assure the 
most sympathetic possible consideration of the 
needs of those countries for additional public 

Moreover, as a result of the deliberations of 
the Special Committee, additional emphasis vsdll 
be placed upon the study of methods for encour- 
aging the wider investment of private capital in 
the Latin American area. This large and diffi- 
cult problem is a constant source of interest and 
concern on the part of all governments that de- 
sire to promote economic progress in Latin Amer- 
ica. With the strains upon the budget of the 
United States because of its many commitments 
throughout the world in the interest of strength- 
ening freedom and independence, and with strin- 
gent budget situations in many of the Latin 
American countries, the investment of capital 
needed for economic growth in Latin America, 
or anywhere else, must depend in large measure 
upon the great resources of private enterprise. 
Some Latin American countries have made nota- 
ble pi-ogress in this respect. That progress can 
be accelerated by further attention to the concrete 

'Jhid., May 4, 1959, p. 646. 

problems of private investment, and in that effort 
the OAS will lend renewed and extended assist- 
ance to the member governments, although the 
responsibility necessarily rests on these govern- 

Fourth, as a result of the studies of economic 
cooperation through the OAS during the past 
year, it is planned to hold periodic conferences in 
which member governments will be represented by 
their top economists. The function of these con- 
ferences will be to review the economic develop- 
ment in each countiy and, by an exchange of views 
at this high level of economic competence and 
skill, to obtain clearer ideas on how specific prob- 
lems can be dealt with and how progress can be 

Problems for Future Attention 

The foregoing does not in any sense exhaust 
the ideas and suggestions which would be consid- 
ered by the Special Committee at its meeting in 
Buenos Aires at the end of this month. Nor does 
it in any sense, as I have indicated, exhaust the 
problems that face the American nations. Sev- 
eral problems must necessarily be left to the fu- 
ture and the continuing positive attention of the 
member governments. 

For example, the problem of commodities re- 
mains a major one affecting the economic life of 
the Ajnerican Republics. Dependent as they are 
upon export of foodstuffs and raw materials to 
the world markets, and principally the United 
States, the Latin American countries are highly 
sensitive to the fluctuations of marketing condi- 
tions, particularly prices of the products they 
sell. Excessive fluctuations in these prices create 
problems both for selling and purchasing coun- 
tries. Yet the question of how to curb these ex- 
cessive fluctuations remains one of the most diffi- 
cult in the whole field of international economic 
cooperation. At this stage the OAS has encour- 
aged the establishment of study groups on cer- 
tain specific commodities and will continue to en- 
courage the search for practical measures that 
will help meet this all-important problem. 

The movement for a more effective treatment of 
economic problems through the OAS is in full 
swing. The present stage of developments in this 
respect presents a justifiable cause for optimism 
and renewed confidence in our inter-American 
regional system. Economic problems are in many 


Deparfmenf of State Bulletin 

respects more complex than any others which the 
OAS has attempted to liandle heretofore. To cite 
only one illustration, it must be borne in mind 
that problems of international trade can rarely 
be approached on an exclusively regional basis. 
Even a problem such as that of the coffee trade, 
which is predominantly related to Latin America, 
cannot be dealt with satisfactorily without taking 
into account the part which other areas of the 
world also play. Thus regional efforts must be 
coordinated with those of a worldwide scope in 
many cases. 

In fact the efforts of any regional organization 
in any field of activity must be related to and 
integrated with the worldwide efforts of the mem- 
ber states, and others, who are joined in the United 
Nations. The great advantage of the Organiza- 
tion of American States is that it draws upon the 
special tradition of cooperation and the experi- 
ence of common action that have been developed 
in this hemisphere. Eegional problems can be 
approached with maximiun understanding both 
of the nature of the problems and the methods for 
resolving them. In no other area has this been 
better demonstrated than in the maintenance of 
peace and security, where prompt action by the 
regional organization, working in the context of a 
long historical development of peaceful and legal 
methods for resolving disputes, has borne par- 
ticularly good fruit. 

These efforts in no way conflict with those of 
the United Nations. The unanimous view of the 
American states in that respect is evidenced by 
their statement in the charter of the OAS that the 
Organization is a regional agency within the 
United Nations and that nothing in the charter 
of the OAS shall be construed as impairing the 
rights and obligations of the American states 
under the charter of the United Nations. 

The Organization of American States repre- 
sents an experience perhaps imique in history of 
the gradually greater sharing of responsibility 
regarding basic problems among a group of comi- 
tries, ranging from the smallest to the largest and 
most powerful. A half century ago the United 
States assumed for itself the responsibility for 
maintaining peace in this hemisphere. We now 
share that responsibility with the other members 
of the OAS. In the fields of economic affairs 
we are increasingly working out with our sister 
republics the mechanisms that will enable us 

likewise to share the responsibility for coping 
with problems directly affecting the basic eco- 
nomic welfare of aU the member states. This 
process offers to all the American states a great 
opportunity to help build a free world based upon 
mutual respect and cooperation. 

The OAS is, therefore, both a practical reality 
and a symbol of an ideal toward which we are 
striving in our international relationships. It has 
significance far beyond its immediate area of ap- 
plication. It is the antithesis of the imperialistic 
subordination of smaller states which is practiced 
by the Conunimist powers. It is an instrument of 
inter- American cooperation which we are gradu- 
ally perfecting. As this is done, we will increase 
the faith of peoples everywhere in their own abil- 
ity to achieve with dignity and independence those 
two objectives so deeply rooted in the life of the 
American Continent : the preservation of freedom 
and the development of a better life for mankind. 

U.S. Ambassadors Meet at Santiago 

The Department of State announced on April 24 
(press release 283) that a conference of the U.S. 
Ambassadors from the 10 countries of South 
America will be held at Santiago, Chile, on May 
7, 8, and 9. Ambassadors from U.S. missions in 
Argentina, Bolivia, Brazil, Chile, Colombia, 
Ecuador, Paraguay, Peru, Uruguay, and Vene- 
zuela will attend. 

Officers of the Department of State attending 
the conference will be headed by Deputy Under 
Secretary Loy W. Henderson and will include 
Roy R. Rubottom, Jr., Assistant Secretary for 
Inter-American Affairs, and Ambassador John C. 
Dreier, U.S. representative on the OAS Council. 
Rollin S. Atwood, ICA Regional Director for 
Latin American Operations, and G. Lewis 
Schmidt, Acting Assistant Director for Latin 
America of the U.S. Information Agency, will also 

The meeting, like that held at San Salvador 
from April 9 to 11 and attended by the U.S. Am- 
bassadors in the 12 countries of the Caribbean and 
Central American area,^ will provide an opportu- 
nity for an exchange of views on current political 
and economic developments in the area in their 
relation to U.S. policy. 

' Bulletin of May 4, 1959, p. 634. 

May n, 7959 


Comments on the Responsibility of States 

hy Loftus Becker 
Legal Adviser ^ 

The relations between the United States and 
Latin America are close. They are close not only 
because of geography but because of common 
ideals and aspirations for a fuller life, lived in 
peace and decency, which have inspired the 
peoples of this hemisphere. Our mutual rela- 
tions in recent years have witnessed our joint ef- 
fort in defeating common enemies and in estab- 
lishing our mutual security against future 

These recent years have also witnessed increas- 
ingly closer economic cooperation between the 
United States and Latin America to meet those 
pressing needs of the present and future which 
have been impressed upon the public imagination 
through the phrase "economic development." 
There is no doubt that the desire on the part of 
the peoples of the hemisphere for physical better- 
ment and, through it, a richer life is the driving 
force in the Americas today. 

This is as it should be. The magic of science, 
technology, and industry, together with the rising 
skills and educational levels of our peoples has 
brought home to all the fact that poverty and 
hopelessness no longer need be tolerated because 
nothing can be done. Our peoples know that these 
things need not be the "way of the world," that 
they can be diminished and abolished through the 
cooperative efforts of human beings. Human be- 
ings, acting cooperatively, can apply science, tech- 
nology, and industry to the process of capital 
formation so as to increase the productivity of 

' Address made before the Inter-American Bar Associa- 
tion at Miami, Fla., on Apr. 14 (press release 262 dated 
Apr. 13). 


human beings — increase their output of the things 
that they need to eat, to wear, to house themselves, 
to educate themselves, and to enjoy a richer men- 
tal and spiritual life. 

There are many ways in which the necessary 
capital can be accumulated and put to work ef- 
ficiently to achieve these ends. The United States 
and the Latin American Republics have testified 
very recently to their conviction that all avenues 
which lead to the formation and application of 
capital to the needs of economic development 
must be used, to the exclusion of none. 

On April 8, 1959 — just 6 days ago — after 3 
months of negotiation, a Specialized Committee 
convened by the Inter-American Economic and 
Social Council, which is the principal economic 
organ of the Organization of American States, 
opened for signature the Final Act resulting from 
its deliberations, including as a part thereof the 
draft of an agreement for the establisliment of an 
Inter-American Development Bank.' The pur- 
pose of the Bank, with an authorized capital stock 
and a fund for special operations totaling $1 bil- 
lion, is "to contribute to the acceleration of the 
process of economic development of the member 
comitries, individually and collectively." To im- 
plement this purpose, the draft articles of agree- 
ment make clear that, among its functions, the 
first and foremost function of the Bank is "to pro- 
mote the investment of public and private capital 
for development purposes." There could be no 
clearer recognition that in the process of economic 
development there is a need for increasing 
amomits of both public and private capital in 

' Bulletin of May 4, 1959. p. 646. 

Department of State Bulletin 

order to achieve the economic development which 
is so necessary. 

It has been truly said that law in a democracy 
exists for the sake of the people's interests that 
may be vindicated and protected thereby. In view 
of the overriding public interest which requires 
economic development through public and pri- 
vate investment for development purposes, noth- 
ing we lawyers do can be more important than 
to foster this overriding public purpose, and 
nothing that we can refrain from doing is more 
important than to avoid interfering with the ac- 
complishment of this public purpose. Just as we 
facilitate public and private investment through 
the creation of institutions such as the Inter- 
American Development Bank, which will be able 
to lend money to both public and private organi- 
zations for economic development purposes, so 
we should avoid undercutting economic develop- 
ment through so-called legal principles which 
create a climate not conducive to economic 

I am not here taking issue with the right of any 
country to take private property for public pur- 
poses upon payment of just compensation. The 
right of a country to do that is not and never has 
been an issue. The Constitution of the United 
States confirms both the right of the Government 
of the United States to take private property for 
public use and its obligations to pay just compensa- 
tion when it does so. This is in accord with inter- 
national law. What I am talking about is an effort 
which has been made by some to establish legal 
principles which can amoimt to a state's taking 
private property without just compensation. In 
this connection I should like to discuss with you 
some recent events at the 1958 meeting of the 
Inter-American Juridical Committee in Rio de 
Janeiro, which, in my opinion, have been unhelp- 
ful in achieving our common objectives. 

Principles Stated by Juridical Committee 

The Tenth Inter-American Conference held at 
Caracas in 1954 adopted a resolution reading as 
follows : 

To recommend to the Inter-American Council of Jurists 
and its permanent committee, the Inter-American Juridi- 
cal Committee of Rio de Janeiro, the preparation of a 
study or report on the contribution the American Conti- 
nent has made to the development and to the codification 
of the principles of international law that govern the 
responsibility of the State. 

The resolution was considered by the Inter- 
American Juridical Committee at its 1958 meet- 
ing. The Committee recommended that the 
American Governments "incorporate into an ap- 
propriate convention, statement, or similar instru- 
ment the principles that should govern the inter- 
national responsibility of the state." On page 8 
of the Committee's report the following statement 
appears : 

With respect to this, we believe that such an instrument 
might Include, among others, the following principles 
that have been accepted by a majority of our countries, 
and which, in our opinion, form part of Latin American 
international law as well as. In certain aspects, of Ameri- 
can International law. 

Since the report of the Committee will next be 
considered by the Inter-American Council of 
Jurists in August of this year and possibly by the 
next Inter- American Conference, it may be useful 
to discuss some of the alleged principles. One of 
them is the following : 

The state is not responsible for acts or omissions with 
respect to aliens except in those cases where it has, under 
its own laws, the same responsibility toward its nationals. 

It seems clear that, if that alleged principle is 
accepted and a state expropriates property of an 
alien, it is not obligated to pay compensation there- 
for if under its laws it is not obligated to pay com- 
pensation with respect to expropriated property 
of its national. This is, of course, contrary to gen- 
erally accepted principles of international law 
which require a state to pay compensation for 
the taking of private property of aliens. For 
example, in an unanimous decision of the General 
Claims Commission, United States and Mexico, 
under the convention of September 8, 1923, it was 
stated in the claim of the Melczer Mining Com- 
pany that : 

It Is unnecessary to cite legal authority in support of 
the statement that an alien is entitled to compensation 
for confiscated property. {Opinions, 1929, pages 228 and 

Consequently the fact that the domestic law may 
or may not provide compensation is wholly irrele- 
vant. The supremacy of international law over 
domestic law is clearly established by decisions of 
the Permanent Court of International Justice. In 
the case of the Free Zones of Upper Savoy, the 
court held that "... it is certain that France 
cannot rely on her own legislation to limit the 
scope of her international obligations. . . ." 

May 71, 7959 


(Series A/B number 46 (1932).)' The Permanent 
Court held similarly in its opinion on Treatment of 
Polish Nationals in Danzig that "a State cannot 
adduce as against another State its own Constitu- 
tion with a view to evading obligations incumbent 
upon it under international law. . . ." (Series 
A/B number 44 ( 1932 ) . ) ^ See also additional au- 
thorities on this point in the Report of the Agent 
for the United States in the Shufelt claim (United 
States) against Guatemala (U.S. Government 
Printing Office, 1932, pages 77 to 81 and 599 to 
602 ; also the decision of the arbitrator, pages 851 
and 871). 

In the light of the foregoing it is clear that 
the i^rinciple as stated by the Juridical Commit- 
tee would run counter to accepted principles of 
international law unless it is amended by adding 
language along the following lines : ". . . except 
where the treatment of the alien is in contraven- 
tion of accepted principles of international law." 
That language is patterned after article 3 of the 
Convention Relative to the Rights of Aliens 
signed by 15 American Republics at Mexico City 
in 1902, which provided for the presentation of 
claims in diplomatic channels in cases involving 
a denial of justice "or of evident violation of the 
principles of international law." 

Ajiother alleged principle is stated by the 
Inter-American Juridical Committee in the fol- 
lowing terms : 

The state is not responsible for damages suffered 
by aliens as a result of fortuitous [unforeseen] events, 
among which are included acts of insurrection and civil 

If this paragraph could properly be interpreted, 
or limited, to mean that a state is not responsible 
for so-called war damages, that is, damages inci- 
dent to the conduct of military operations, it 
would be acceptable. However, as drafted it 
would seem to exclude responsibility for losses or 
damages sustained from the requisitioning of 
property of aliens by the constituted authorities, 
or by revolutionary forces which are successful, 
for which losses the state is regarded as respon- 
sible under generally accepted principles of inter- 
national law. (See "Harvard Research in 
International Law," 23 American Journal of In- 

" II Hudson, World Cnnrt Reports, pp. 508 and 561. 
'Tbid., pp. 788 and 804. 

te7'nntional Law, Supplement, April 1929, pages 
195 and 196 ; Nielsen, International Laio Applied 
to Reclamations, pages 31 and 32; Ralston, The 
Laxv and Procedure of International Tribunals^ 
pages 343 and 344.) 

We now come to the final alleged principle of 
international law as asserted by the Juridical 
Committee in the following terms (pages 8 to 9) : 

The responsibility of the state, insofar as judicial pro- 
tection is concerned, should be considered fulfilled when 
it places the necessary national courts and resources at 
the disposal of aliens every time they exercise their rights. 
A state cannot make diplomatic representations in order 
to protect its nationals or to refer a controversy to a 
court of international jurisdiction for that purpose, when 
the said nationals have had available the means to place 
their case before the competent courts of the respective 

Therefore : 

a. There is no denial of justice when aliens have had 
available the means to place their cases before the com- 
petent domestic courts of the respective state. 

b. The state has fulfilled its international responsi- 
bility when the judicial authority passes down its de- 
cision, even though it declares the claim, action, or 
recourse brought by the alien to be inadmissible. 

c. The state has no international responsibility with 
regard to the judicial decision, whatever it may be, even 
if it is not satisfactory to the claimant. 

d. The state is responsible for damages suffered by 
aliens when it is guilty of a denial of justice. 

Pact of Bogota 

That part of the draft relating to such matters 
as diplomatic protection, the exhaustion of reme- 
dies, and denial of justice is of considerable im- 
portance in the inter- American field of foreign 
relations and the encouragement of foreign invest- 
ments. Apparently the prmciples announced are 
largely the outgrowth of article VII of the Pact 
of Bogota, which provides as follows : 

The High Contracting Parties bind themselves not to 
make diplomatic representations in order to protect their 
nationals, or to refer a controversy to a court of inter- 
national jurisdiction for that purpose, when the said 
nationals have had available the means to place their case 
before competent domestic courts of the respective state. 

The Argentine Republic signed the Bogota Pact 
with a reservation that it did not adhere to several 
articles, including article VII. The United States 
also signed with the f oUowmg reservation : 

The Government of the United States cannot accept Ar- 
ticle VII relating to diplomatic protection and the ex- 
haustion of remedies. For its part, the Government of 


Deparlment of State Bulletin 

the United States maintains the rules of diplomatic pro- 
tection, including the rule of exhaustion of local remedies 
by aliens, as provided by international law. 

Although the pact was signed some 11 years 
ago, only 9 of the 21 American Republics have 
ratified it. With respect to that situation, we may 
refer to the decision of the International Court of 
Justice in the Colonibian- Peruvian Asylum case. 
I quote from the majority decision of the Court 
(page 277) : 

It is particularly the Montevideo Convention of 1933 
which Counsel for the Colombian Government has also 
relied on in this connexion. It is contended that this 
Convention has merely codified principles which were 
already recognized by Latin-American custom, and that 
it is valid against Peru as a proof of customary law. 
The limited nimiber of States which have ratified this 
Convention reveals the weakness of this argument. . . . 

The International Court apparently was not 
impressed, although the 1933 convention had been 
ratified by 11 American states. The Pact of 
Bogota has been ratified by only 9 states. Is there 
any justification, therefore, for contending that 
the provision quoted from the Pact of Bogota rep- 
resents "American international law" or "Latin 
American international law," when a considerable 
majority of the American states have not ratified 
the pact ? 

The OAS Charter Provision 

In contrast, at the same conference at Bogota, 
held in 1948, the charter of the Organization of 
American States was signed, article 6 of which 
provides, in part, as follows : ^ 

The American States reaffirm the following principles : 

a) International laio is the standard of conduct of 
States in their reciprocal relations ; 

b) International order consists essentially of respect for 
the personality, sovereignty and independence of States, 
and the faithful fulfillment of obligations derived from 
treaties and other sources of international law. . . . 

Article 7 provides : 

Every American State has the duty to respect the rights 
enjoyed by every other State in accordance with inter- 
national law. 

I point out that nothing is said in the charter of 
the Organization of American States about 
"American international law" — much less "Latin 


"Treaties and Other International Acts Series 2361, 
pp. 27 and 28 (italics added) . 

May I J, J959 

American international law." The charter em- 
ploys the term "international law" in unmodified 
form, meaning customary international law as it 
is generally understood. It does not refer to some 
alleged regional concepts. It is important to 
stress the fact that the charter was signed and rat- 
ified by each and every one of the 21 American 
Eepublics, and as far as I am aware it is the latest 
unanimous pronouncement of the American Re- 
publics regarding the matter. 

Wliile paragraph VI (d) of the Juridical Com- 
mittee's report, which I have just quoted at length, 
declares that a "state is responsible for damages 
suffered by aliens when it is guilty of a denial of 
justice," that paragraph is for all practical pur- 
poses nullified, insofar as it relates to judicial pro- 
ceedings in which an alien may be a plaintiff or 
defendant, by the preceding paragraphs, which 
provide, in effect, that the state has fulfilled its 
international responsibility when a court hands 
down its decision, "whatever it may be." 

There is an anaclironistic air which hovers 
about the recommendations of the Inter- American 
Juridical Committee. It is an air which connotes 
fear rather than confidence. The Juridical Com- 
mittee would have us believe that the countries of 
Latin America are unable to accept the public 
and private investments necessary to their eco- 
nomic development because of a lack of confidence 
that they can protect them. 

Doctrines such as those which the Juridical 
Committee has enunciated are out of tune with 
the needs and aspirations of the peoples and 
states of Latin America. They undercut the work 
which is being done to promote public and private 
investments, as, for example, the new Inter- Amer- 
ican Development Bank. They are a throwback 
to a bygone era when states were not concerned 
with the encouragement of foreign investment or 
with their ability to promote the lot of the com- 
mon man. After all, the lot of the common man 
within a state is the primary responsibility of 
that state. Those with responsibility within a 
state — whether officials or the intelligent popu- 
lace — ^need, I submit, to concern themselves with 
providing a safe environment for the investment 
of foreign capital and industry. Irresponsible 
statements by jurists within the American Ee- 
publics in the direction of avoiding responsibility 
can have only an opposite effect. 


International Commerce 
and the Paths to Peace 

Remarks hy President Eisenhower ^ 

The coming together, anywhere, of businessmen 
from more than 50 countries — men of high compe- 
tence and common purpose — must surely benefit 
them all. It proves again that the whole can be 
greater than the sum of its parts. That this Con- 
gress should have taken place in the United States 
is a circumstance of which I and all my country- 
men are proud indeed. We trust you have sensed 
the warmth and sincerity of your welcome here. 

Some of you perhaps are visiting us for the 
first time. Others are old friends. In either case, 
while you are here we want you to see all you can 
of our country because in gaining an understand- 
ing of a region and its people there is no substi- 
tute for personal visitation and observation. You 
will not be pleased with everything you see. 
Neither are we. But you will see us as we are; 
you will form your own opinions, and you will 
gain in knowledge and in understanding. Along 
this road — and it is of course a two-way road — lies 
international understanding and the hope for 

The theme of this I7th biennial Congress, "To- 
day's Challenge to Businessmen — Their Responsi- 
bilities in Domestic and World Affairs," is of 
universal interest. Probably every one of the 
subjects you have considered so carefully in your 
sessions is also a concern of governments. Sound 
money, high employment, rising standards of 
living, the movement and marketing of goods and 
services — all these and more present problems that 
face both men of business and men of govern- 
ment. And I break no government security when 
I say we hope that businessmen will come up with 
some of the solutions. 

Your actions, your discussions, your decisions 
— not only in this Congress but more importantly 
in your day-to-day commerce with each other — 
hold the free world's hope for progress toward 
greater unity and firmer mutual strength. For 
our strength must come from growth. Perhaps 
you will permit me to repeat to you what I said 

to another group meeting here in Washington 
just 10 days ago.'' I said: 

. . . the free nations urgently need economic growth 
and the free communication of ideas. ... 

We are challenged to prove that any nation, wherever 
it is, whatever its strength, can prosper in freedom, that 
slavery is not necessary to economic growth even in the 
atmosphere of a cold war of conflicting ideologies. We 
will have to show that people need not choose between 
freedom and bread ; they can earn both through their 
own efforts. We must prove . . . that in providing for 
man's material needs private enterprise is infinitely su- 
perior to Communist state capitalism. 

So I believe that this is today's challenge to 
businessmen : the challenge to prove that the free- 
market economy which the International 
Chamber of Commerce has championed so long 
and so well can outproduce any other kind of 
economy known to man. 

Since the days of Marco Polo the march of 
civilization has tramped down the trade routes of 
the world. Commerce between peoples moves 
more than products. It distributes ideas and tech- 
nologies. It develops mutual understandings and 
cooperative efforts toward common goals. 

And never has this been truer than it is today. 
The old saying was that "trade follows the flag." 
Today, in a very definite way, "the flag follows 
trade." But the flag of which I speak is an inter- 
national banner, that of freedom and peace. 

As you return home from these meetings to 
plunge once again into your business activities, I 
trust that you will hold firmly in your programs 
and policies to the basic thought that the trade 
routes of international commerce are also the 
paths to peace. 

Thank you — good fortune and goodby. 

World Trade Week, 1959 


Whereas commerce among the nations contributes to 
the economic stability and progress of the United States 
and its trading partners ; and 

Whereas international trade provides regular and di- 
rect lines of communication between the jwoples of the 

' Made before the International Chamber of Commerce 
at Washington, D.C., on Apr. 23 (White House press re- 

' For text of President Eisenhower's remarks before the 
Advertising Council on Apr. 13, see Bulletin of May 4, 
1950, p. 620. 

' No. 3286 ; 24 Fed. Reg. 3265. 


Department of State Bulletin 

world, thus stimulating mutual respect and understand- 
ing which are the groundwork of peace ; and 

Whereas growing competition In international trade 
requires that greater effort be made in this vital area : 

of the United States of America, do hereby proclaim the 
week beginning May 17, 1959, as World Trade Week ; and 
I request the appropriate officials of the Federal Govern- 
ment, and of the State and local governments, to co- 
operate in the observance of that week. 

I also urge business, labor, agricultural, educational, 
and civic groups, as well as individual citizens, to observe 
World Trade Week with gatherings, discussions, exhibits, 
ceremonies, and other appropriate activities designed to 
promote continuing awareness of the importance of world 
trade to our economy and to our relations with other 

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

Done at the City of Washington this twenty-second 

day of April in the year of our Lord nineteen 

[seal] hundred and fifty-nine, and of the Independence 

of the United States of America the one hundred 

and eighty-third. 

^y Ljls-^ L'tZ^U-ie.^L^ A^Kf^. 

By the President : 

Christian A. Herter, 
Secretary of State. 

Secretary Acknowledges Greetings 
of Department Personnel 

Remarks by Secretary Herter ^ 

Press release 280 dated April 22 

All I can say is that this is completely unex- 
pected and I can't tell you how touched I am. 
As one who began public life in the State Depart- 
ment, it is, of course, a tremendous thrill to be 
allowed to feel that I can now perhaps help all 
of us who are working as a team together in the 
tremendously important job we all have to try 

' Made Informally on Apr. 22 at the main entrance of 
the Department of State building, where the Secretary 
was greeted by personnel of the Department following 
his return from his swearing-in ceremony at the White 

to keep this country at peace and the world at 

I only wish I had time now to shake hands with 
every one of you. I'm sorry I can't. But I do 
want you to know that my heart is very warm at 
this moment, and I am hoping in the days to come 
I will have a chance to see each of you and thank 
you all for this very fine reception. 

Thank you. 

Mr. Dulles Becomes Special Consultant 
to the President 

White House press release dated April 23 

The President on April 23 attended the swear- 
ing-in ceremony of John Foster Dulles as Special 
Consultant to the President. Mr. Dulles will 
serve in this capacity with Cabinet rank. The 
ceremony took place at Walter Reed Hospital. 

In his letter accepting Secretary Dulles' resig- 
nation as Secretary of State,^ the President re- 
quested Mr. Dulles to serve as a consultant to 
him and to the State Department in the field of 
international affairs to the extent that his health 
will permit. 

After Mr. Dulles had taken the oath of office, 
the President told him : 

Your willingness to continue to contribute your abun- 
dant talents and unique experience to the service of the 
United States and the free world Is but one more ex- 
ample of your magnificent spirit and devotion to the 
Nation's welfare. 

It is highly gratifying not only to myself and the 
Secretary of State — but indeed to the people of the 
Nation — to know that we both shall continue to have 
the benefit of your advice and counsel. 

Mr. Dulles replied : 

Mr. President: For 6 years and more I have served 
as your Secretary of State. The relationship has been 
one of intimate understanding and effective cooperation 
which has afforded me deep satisfaction. Unhappily, my 
health no longer permits me to continue with the mani- 
fold responsibilities of that great office. Yesterday my 
trusted friend and second in command, Mr. Herter, took 
over. I am proud that he and his associates in the De- 
partment of State and Foreign Service constitute a team 
that is highly qualified to carry on your basic policies. 

" For text, see Buixetin of May 4, 1959, p. 619. 

May 11, J959 


You, I know, share the same pride and confidence. 
I now assume, at your request, the position of Special 
Consultant to the President I am grateful to you for 
wanting me to serve in this capacity. I accept in the 
hope that I shall thus be able to assist you and the 
Secretary of State in the solution of problems which will 
continue to confront our Nation in its quest of a just 
and honorable peace. 

In addition to the President, others attending 
the ceremony included the Vice President, the 
Secretary of State, Mrs. John Foster Dulles, the 
Director of Central Intelligence, and the Under 
Secretary of State for Economic Affairs. 

President Sends Congratulations 
to American Federation of Arts 

Message of President Eisenhoiver^ 

April 23, 1959 

Dear Mr. Neuberger : It is a pleasure to send 
greetings to those attending the Fiftieth Anniver- 
sary Convention of the American Federation of 
Arts. In this divided world, it is good to be re- 
minded of the universality of the arts. In Europe, 
Asia, Africa, and the Americas, the artist speaks 
a sensitive language full of meaning for mankind. 
This language cannot be confined ; freedom is es- 
sential to all creative work. 

For half a century the American Federation of 
Arts has been a strong force beliind the growth 
of art appreciation in the United States. Its 
exhibitions have brought the arts to people 
throughout the national community — ^and to our 
neighbors abroad. Its standards of quality, 
free of any bias, have been as deep as the human 
heart and as high as the spirit. 

I am delighted to add my personal congratula- 
tions and best wishes. 

DwiGHT Eisenhower 

Mr. Rot R. Netjberger 


The American Federation of Arts 

1083 Fifth Avenue 

New Yorh 28, New York 

' Read by Under Secretary of State Douglas Dillon 
before the American Federation of Arts at Washington, 
D.C., on Apr. 24 (press release 284). 

King Baudouin of Belgium 
Visits United States 

The Department of State announced on April 
24 (press release 285) that arrangements have been 
comjDleted for the visit of King Baudouin of the 
Belgians, who will visit the United States at the 
invitation of President Eisenhower. 

King Baudouin, accompanied by Belgian offi- 
cials, will arrive at Washington on May 11. The 
party will remain in Washington until May 14, 
when they will begin a trip which will include 
visits to Detroit, Mich. ; Chicago, 111. ; Dallas and 
El Paso (Fort Bliss), Tex.; Los Angeles, San 
Francisco, Palo Alto, and Cypress Point, Calif.; 
Santa Fe, N. Mex.; Omaha, Nebr. ; New York, 
N.Y. ; and Norfolk, Va. They will leave for Brus- 
sels from Newcastle County Airport at Wilming- 
ton, Del., on May 31. 

Berlin Medical Center 
Design Completed 

The Department of State announced on April 
22 (press release 275) that the design and plans 
for a modern medical center in Berlin had been 
made public on April 21 at a meeting of the Ben- 
jamin Franklin Foundation at Berlin. 

The design, which provides for all the newest 
features of a medical treatment, teaching, and re- 
search center, was developed by Arthur Davis, of 
New Orleans, with associated architects Moreland 
Griffith Smith, of Montgomery, Ala., and Franz 
Mocken, of Berlin. Wlien completed, the group 
of buildings will include a 1,200-bed hospital and 
the most advanced examination, therapeutics, 
teaching. X-ray, and operating facilities. The 
center will also provide for treatment of an esti- 
mated 300,000 outpatients. 

Funds for the project will be provided jointly 
by the U.S. mutual security program and the city 
of Berlin. 

The first stage of the project, which will be a 
self-contained operating unit of approximately 
600 beds with related services, is expected to be 
completed by early 1961 at a cost of approxi- 
mately $15 million. Construction of the second 
stage, which is planned to provide double the 
number of hospital beds with a variety of sup- 
porting facilities, will begin shortly after the first 
stage is completed. 


Deparfment of State Bulletin 

The Benjamin Franklin Foundation, a non- 
profit organization incorporated in Berlin under 
the chairmanship of American architect Leon K. 
Chatelain, Jr., of Washington, D.C., is exercising 
leadership in developing the program and design 
and in handling the financing for the project. 

Daniel Hofgren Appointed to 
Board of Foreign Scliolarsliips 

The President on April 17 appointed Daniel W. 
Hofgren to be a member of the Board of Foreign 
Scholarships for the remainder of the term ex- 
piring September 22, 1959, vice Katherine Blyley, 

Under Secretary Dillon Returns 
From Meetings in Far East 

Statement by Under' Secretary Dillon 

Press release 272 dated April 19 

I am returning from the SEATO Council 
meeting in Wellington,^ brief stopovers in Can- 
berra, Djakarta, and Manila, and the annual con- 
ference of our ambassadors in the Far East, which 
was held this year at Baguio in the Philippines. 

I return from the SEATO meeting confident 
that this organization, by providing a defensive 
military shield behind which the members can 
continue their economic and social progi'ess in 
freedom, is serving the best interests of the entire 
free world. The meeting was remarkable for its 
fine spirit of cooperation. Under the able leader- 
ship of Prime Minister Nash of New Zealand, 
we had free and frank discussions of all matters 
affecting the treaty area. We agreed that the 
bulwark of defense against Communist aggi'es- 
sion and subversion must bo continually strength- 
ened, that living standards throughout the area 
must be raised, and that SEATO's cooperative 
programs in the economic, social, and cidtural 
fields should be continued and enlarged. 

My visits to Canberra, Djakarta, and Manila 

' For an address made by Mr. Dillon at the meeting, 
the text of the final communique, and a report on SEATO 
by the Secretary General, see Bulletin of Apr. 27, 1959. 
pp. 602 and 605. 

provided welcome opportmiities to renew associ- 
ations with leaders in those capitals and to dis- 
cuss with them matters of mutual interest. In 
Baguio I had the opportunity of hearing first 
hand from our ambassadors in the Far East about 
conditions in the area and of participating with 
them in useful discussions of current problems. 
I also reported to the meeting on developments in 
areas other than the Far East. 

All of these talks have been valuable contribu- 
tions to our continuing effort to help find answers 
to the common problems that face the nations of 
SEATO and our other friends in Asia. 

U.S. Extends Validations for Newsmen 
To Go to Communist China 

Press release 281 dated April 23 

The Department of State is extending for 1 
year the passport validations of correspondents 
of the 30 American news organizations authorized 
to send one representative each to Communist 
China. These validations, now expiring May 22, 
will be extended upon presentation of the pass- 
ports to the Department of State's Passport Office 
or to certain consulates. 

With but one exception, none of the designated 
organizations has been permitted by the Chinese 
Communist regime to send a correspondent into 
Communist China since the Department an- 
nounced on August 22, 1957,^ its present policy 
of validating the passports of a limited number 
of American correspondents to go to the China 
mainland. It may be recalled that the Chinese 
Communist regime invited certain American 
newsmen to visit Communist China prior to 
August 22, 1957. However, when the Depart- 
ment authorized certain news organizations to 
send one representative each to Communist China, 
the Peiping regime refused to grant visas. 

The Peiping regime has attempted to justify 
this refusal by charging that the U.S. Govern- 
ment was not granting reciprocity. However, the 
Department has repeatedly made it clear that, 
if any bona fide Chinese Communist newspaper- 
man should apply for a visa, the Secretary of 
State is prepared to consider recommending to the 
Attorney General a waiver under the law so that 

' Bulletin of Sept. 9, 1957, p. 420. 

May 71, J959 



a visa could be granted. Not one Chinese Com- 
munist correspondent has yet filed an application. 
American law does not permit the Department to 
do what the Chinese Communists demand, which 
is to agree in advance to admit an equal number 
of Chinese Communists, even before their identi- 
ties are known to us. If the Cliinese Communists 
were indeed interested in recipi-ocity, they would 
have an equal number of Chinese newsmen apply 
for visas. 

The American news organizations accredited by 
the Department on the basis of the established cri- 
teria, namely, that they had demonstrated suflS- 
cient interest in foreign news coverage to maintain 
at least one full-time American correspondent 
overseas and that they wished to be represented in 
Communist China for 6 months or longer, are the 

following: American Broadcasting Co., Associ- 
ated Press, Baltimore Sun, Chicago Daily News, 
Chicago Tribune, Christian Science Monitor, Co- 
lumbia Broadcasting System, Copley Press, Inc., 
Cowles Publications, Denver Post, Encyclopedia 
Britannica, Fairchild Publications, McGraw- 
Hill Publishing Co., Inc., Minneapolis Star and 
Tribmie, Mutual Broadcasting System, National 
Broadcasting Co., Newspaper Enterprise Associa- 
tion, Inc., New York Herald Tribune, New York 
Times, Newsxoeek, North American Newspaper 
Alliance, Reader''s Digest, St. Louis Post-Dis- 
patch, Saturday Evening Post, Scripps-Howard 
Newspapers, Time Inc., United Press Inter- 
national, U.S. News and World Report, Wall 
Street Journal, and Westinghouse Broadcasting 
Co., Inc. 

United States-Vietnamese Cooperation: The ICA Program Since 1955 

by Leland Barrows ^ 

The United States Operations Mission — USOM, 
as it is commonly called in Viet-Nam — is only one 
element in the team which, under the leadersliip 
of the American Ambassador, represents the 
United States in Viet-Nam. USOM's job is two- 
fold. First, it administers the financial assist- 
ance, largely in the form of imported goods and 
equipment, which has enabled the Vietnamese 
economy to survive the extraordinary strains 
and stresses of the past 4 years and to support 
the armed forces needed for national defense. 
Second, USOM provides technical assistance to 
the civilian sector of the Vietnamese Goverimient 
and economy in the form of services of Ameri- 
can and other foreign specialists and training 

'Address made before the American Friends of Viet- 
nam at Wasliington, D.C., on Apr. 17 (press release 270). 
Mr. Barrows is Regional Director for tlie Near East 
and Soutli Asia, International Cooperation Administra- 
tion. He was Director of the U.S. Operations Mission 
to Viet-Nam from October 1954 to November 1958. 

programs at home and abroad for Vietnamese 
students and officials. Other elements of the 
American official family provide material and 
technical help to Viet-Nam, as do many private 
American philanthropic and religious organiza- 
tions, of which one must count, among the most 
important, the American Friends of Vietnam. 

During the 4 years I was Director of USOM 
in Viet-Nam American economic aid totaled $983 
million. This is a very large amount of money. 
Yet it is less than the amount spent by the United 
States to provide military equipment and supplies 
to the forces engaged in the war against the Com- 
munists in Indochina in the 3 years from 1951 
to 1954 and only a little larger than the amount 
the United States agreed to provide toward the 
cost of fighting that war during its last year. I 
make this comparison to remind you that the cost 
of maintaining peace through giving aid to a 
strong and reliable ally is certain to be less than 


Department of State Bulletin 

the cost of a war. This comparison may also give 
you some measure of the level of economic ac- 
tivity associated with the conduct of the war in 
Indochina and thus an understanding of the finan- 
cial and budgetary problems which confrontefl 
the Government of Viet-Nam and those of the 
other Indocliinese states when they began their 
separate economic existences following the armi- 
stice of 1954. 

Forms of U.S. Economic Aid 

Of the various purposes for which this large 
amount of money was used, technical cooperation 
took the smallest proportion — $12 million, 1.2 
percent — ^yet was in some respects the most perva- 
sive and far-reaching in its benefits. Technical co- 
operation funds have provided specialized assist- 
ance to supplement and assist trained Vietnamese 
personnel in many fields of civilian activity. 
They have financed the training of Vietnamese 
personnel abroad and have provided specialized 
equipment for demonstration and study. During 
the period at which we are looking today, USOM's 
largest technical cooperation effort was actually 
conducted by the Michigan State University 
group, whose work in the field of public adminis- 
tration and police administration is famous in 
Viet-Nam and is certainly known to most of you 
here. But the technical cooperation program 
covered a wide variety of other activities, touch- 
ing in one way or another nearly every phase of 
civilian governmental activity and supporting the 
reconstruction and development projects financed 
by American aid. 

At the other extreme, the largest proportion of 
American aid funds — more than 80 percent of the 
total, in fact — was used to provide what, in the 
lexicon of ICA, is called nonproject assistance. 
I am sorry to inflict this particular bit of tech- 
nical jargon on you today, but I know no way to 
avoid it if you are to understand clearly how 
American aid has been used in Viet-Nam and why 
it has taken the form it took. Nonproject aid 
means money or credits to purchase commodities 
and equipment needed to enable the Vietnamese 
economy to operate at the level necessary to 
achieve our common objectives. Nonproject aid 
takes the form of raw materials and fuel for in- 
dustry, spare parts and new machines, as well as 
essential consumption goods. In Viet-Nam non- 

project aid finances about 80 percent of the na- 
tion's imports. 

Tlie third form of economic aid provided to 
Viet-Nam — accounting for $96 million in 4 
years — we call project assistance. This is aid in 
the form of goods and services provided directly to 
Government agencies or autonomous entities, such 
as the state railways, for the purpose of building 
or rebuilding some specific enterprise of economic 
value. Project aid has included such varied 
undertakings as, for example, the provision of 
well-drilling rigs and trained personnel to teach 
and supervise their use, steel rails and bridges 
for reconstruction of the war-damaged national 
railway, trucks and tractors for land develop- 
ment, and equipment and medicines for Govern- 
ment hospitals throughout the country. 

One other technical feature of American aid, 
the counterpart fund, requires explanation at this 
point. On the one hand, many of the urgent 
problems with which the Government of Viet- 
Nam was confronted in 1955, and indeed is still 
confronted today, required the expenditure not 
of foreign exchange but of Vietnamese currency. 
On the other hand, the nonproject aid to which I 
have referred could be, and in fact is, administered 
in such a way as to help meet this need for local 
currency. With very minor exceptions, all non- 
project aid goods are sold to the private sector 
of the Vietnamese economy for cash. Receipts 
from these sales are by agreement deposited in a 
special account in the National Bank of Viet-Nam, 
from which they are transferred as required to 
the military budget or to other accounts of the 
Vietnamese Government. By this means the local 
currency proceeds of nonproject aid are used to 
support the armed forces and to pay some of the 
local-currency costs of the many teclinical assist- 
ance and capital projects. In 1955 Viet-Nam was 
able to make only a small local-currency contribu- 
tion to projects. Each year that contribution has 
increased — both in amount and as a percentage of 
the total — so that by 1958 it covered more than 
half of the piaster cost of aid-supported projects. 

So much by way of teclinical preparation. Now 
I think we can usefully take a closer and more 
detailed look at the economic aid program. For 
this purpose I should like to proceed chronologi- 
cally. Without depriving ourselves of the pre- 
cious advantage of hindsight, I hope I can, year 
by year, reconstruct in some measure the problems, 

May J 7, T959 


conditions, and atmosphere of past years in Viet- 
Nam so you will better understand the decisions 
and actions that were taken. 

First Year— 1954-55 

Let us return now to the first year, October 1954 
to October 1955. This was a period dominated 
by political and military struggle in Viet-Nam. 
It began in doubt and discouragement and ended 
with the national referendum, a dramatic demon- 
stration of political strength and popular confi- 
dence. In October 1954 the authority of the Gov- 
ernment was everywhere contested. Large areas 
of the countryside were still in Viet Minh hands, 
since under the terms of the Geneva Accords the 
Communists were not required to yield the last 
territories until the following May. Other large 
areas were in the hands of dissident sects, and the 
city of Saigon was controlled by the forces of 
the Binh Kuyen. On his side, Ngo Dinli Diem 
had little more than his own personal moral 
strength and determination and, as we were to 
learn, a widespread but then inarticulate popular 

In the circumstances political struggle to estab- 
lish the authority of the central government took 
precedence over all other objectives. The struggle, 
as you will recall, turned to outright warfare in 
the spring of 1955. After the brief, bloody, and 
decisive battle of Saigon, events moved quickly 
and the way was open to establish peace and free- 
dom throughout the country. 

Less dramatic and less well known than the 
political and military developments of 1955 are 
the economic and financial problems which the 
new government also met and solved. It was not 
easy to make long-range plans when the future 
was so much in doubt, but much basic work was 
undertaken and accomplished. Through the 
means of joint working parties USOM was able to 
participate in this effort. In fact the basic shape 
of the American economic aid program, even as it 
is today, was fixed during this period by the prob- 
lems with which the Vietnamese Government was 
then confronted. 

To keep this discussion within reasonable limits, 
I can do no more than touch upon the most im- 
portant problems with which the aid program 
dealt. In 1955 two broad areas were foremost in 
our concern and may be selected as representative 
of the work of that year. These were basic prob- 

lems of the Government of Viet-Nam to which 
American aid contributed not only substantial 
amounts of money but also a measure of technical 
assistance and advice. 

The first of these areas I shall call, for want of 
precise designation, establishing financial au- 
tonomy. Remember the situation with which the 
new government was confronted. Before 1954 
Viet-Nam had attained a degi'ee of political au- 
tonomy as a member of the Associated States of 
Indochina, but it did not attain financial autonomy 
until January 1, 1955. At that time a newly es- 
tablished national bank assumed responsibility for 
issue and control of the national currency. Ad- 
ministration of customs and trade controls and 
control of foreign exchange were assumed by Viet- 
namese administrators. The Vietnamese na- 
tional army, which until 1955 was paid directly 
by the French Treasury, became the responsibility 
of the Vietnamese national budget, and at the 
same time the United States, through the mecha- 
nism of nonproject aid which I have described 
above, undertook to provide the means with which 
to meet this obligation. 

This is a point I should like to emphasize. 
Wlien the Vietnamese authorities examined the 
budget upon taking control of their own financial 
affairs in 1955, they found normal revenues suffi- 
cient to cover normal civilian expenses. They 
found a separate military budget larger than their 
civilian budget but financed entirely by funds 
administered by French military finance authori- 
ties. As a matter of fact, these funds came 
largely, in 1954, from a grant of dollars made by 
the United States to France. At any rate the 
first and fundamental financial problem of the 
new government was found in the fact that the 
budgetary structure of the country made no pro- 
vision for supporting military forces yet support 
of the armed forces was essential to the survival 
of the country. 

Clearly, in a situation of this sort, the first need 
of American aid was to help solve this problem. 
This historic fact accounts for the emphasis upon 
military budget support which has characterized 
the American aid program in Viet-Nam. 

I might add that the cost of the military forces, 
and their size as well, was reduced drastically dur- 
ing the 4 years that I was in Viet-Nam, in face 
of the fact that during much of that period the 
military force was engaged in actual military op- 


Department of State Bulletin 

erations against bandits and Communist guer- 
rillas. Moreover, as my friend and colleague, 
General Myers,^ will tell you, the force has grown 
mightily in strength and effectiveness during the 
same period. 

My first year in Viet- Nam was marked by an- 
other extraordinary undertaking of massive pro- 
portions and dramatic impact — the refugee move- 
ment — Operation Exodus.' The whole world 
knows the story, so I will not retell it here. I 
should simply like to recall that it was a wonder- 
ful and unprecedented adventure, with work and 
glory enough for all the many people and organi- 
zations who took part in it. USOM's role was 
not the least and not the largest, but we did have 
responsibility for administering the United States 
Government funds which bore the bulk of the fi- 
nancial burden — $55 million in equipment, sup- 
plies, and counterpart funds. USOM's most sig- 
nificant contribution came the following year, 
when, by using an additional $35 million of United 
States Government funds to finance, project by 
project, the establishment of the refugee popu- 
lation in permanent villages, we were able to help 
the Government of Viet-Nam to complete this vast 
population movement in only 2 years. 

Second Year — 1955-56 

The year which began in October 1955 saw sub- 
stantial progress in every aspect of the American 
economic aid program in Viet-Nam. Of the many 
developments during the year, I shall mention 
only four. Of these, the most dramatic and un- 
questionably the most successful was the refugee 
resettlement program, which, as I have already 
mentioned, completed the job begun the year 

This year also brought solutions to the prob- 
lems of foreign trade administration and import 
licensing. Before 1955, when Viet-Nam was a 
part of the Associated States, her foreign trade 
was largely within the French Union. The only 
foreign currency available in quantity in Viet- 
Nam was French francs, and, as a consequence, 
most of the imports into Viet-Nam came from 
France. With the advent of full financial auton- 

'Maj. Gen. Samuel L. Myers was deputy chief of the 
U.S. Military Assistance Advisory Group in Viet-Nam 
from 1956 to 1958. 

' For a report on the first weeks of Operation Exodus, 
see Bulletin of Feb. 7, 1955, p. 222. 

omy in 1955 and the allocation of American eco- 
nomic aid directly to Viet-Nam, the country was 
enabled to trade wherever it liked in the free 
world. It was in fact obliged, in using American 
aid, to buy in the most advantageous free-world 

Before 1955 most of the foreign trade was 
in the hands of foreign firms and foreign banks, 
some of which withdrew from business and many 
of which were hesitant for a time to continue their 
operations. At the same time many Vietnamese 
wished to enter commerce, and the Vietnamese 
Government naturally wanted to encourage for- 
mation of Vietnamese commercial houses. All 
these factors contributed to a period of imcer- 
tainty and confusion in the field of commerce, 
which lasted throughout most of 1955. One as- 
pect of the problem was the springing up of some 
20,000 so-called importers. In an effort to meet 
the demands of these new Vietnamese business- 
men, licenses were allocated in such large nmn- 
bers and small values as to raise prices and slow 
down the arrivals of merchandise. 

This proved to be a temporary difficulty, how- 
ever, for the Ministry of Economy, under the lead- 
ership of the distinguished Vietnamese statesman 
who is now Vice President of the Eepublic 
[Nguyen Ngoc Tho], established new administra- 
tive rules which brought order and equity to this 
important economic area. 

The year 1956 also saw a rapid expansion in 
the project aid provided by the United States. 
Most important among the developments of tliis 
period were actions contributing to agricultural 
reconstruction. American aid helped to reorgan- 
ize the administration of agricultural credit and 
contributed a capital fund of $10 million in 
piasters for crop loans and other forms of rural 
credit. USOM provided technical assistance and 
administrative funds to the agrarian reform ad- 
ministration for the present widespread program 
of land reform. Assistance was given in creating 
an agricultural extension service and a college of 
agriculture and in launching important projects 
in crop improvement and livestock breeding. Im- 
portation of buffalo and oxen from Thailand and 
Cambodia was initiated to replenish the supply of 
work animals depleted during the years of war 
and civil disorder. In all, to refugees and other 
needy farmers 24,000 work animals were sold on 
reasonable credit terms. 

May J J, 7959 


The year 1956 also marked the beginning of 
major programs in the field of public works, most 
notably the reconstruction of highways and 
bridges. Aid was also given for the improvement 
of waterways, civil airways, and telecommunica- 
tions. Indeed the story of USOM's contribution 
to the reconstruction and improvement of public 
works in Viet-Nam deserves more time than I can 
possibly give it today. I should like to say, how- 
ever, that the highway program initiated in 1956 
has been growing since that time and is only now 
reaching its peak. Through this effort American 
aid has provided the Vietnamese Ministry of 
Public Works with a large, modern, coordinated 
supply of highway and bridgebuilding equipment 
and shops and warehouses for its maintenance. 
It has developed quarries, precasting plants for 
concrete pipe and bridge members, and other acces- 
sory facilities for modern highway construction. 
The services of American engineers and an Ameri- 
can construction contractor have been provided 
to rebuild three major roads and to train Viet- 
namese so that, when the first tasks are completed, 
the Vietnamese Government can use the equip- 
ment we have provided to continue the large and 
long-range highway building and maintenance 
task which the country confronts. 

Third Year— 1956-57 

The year which began in October 1956 was 
marked by particular progress in the field of pub- 
lic administration and financial reform. Indeed 
a preparatory step for the measures initiated in 
1957 was taken in July 1956, when the Govern- 
ment of Viet-Nam opened a limited-access free 
market for foreign exchange transactions. 

To understand the importance of this measure 
it is necessary to return once again to the early 
months of 1955. Within a few months after as- 
suming responsibility for the administration of 
exchange controls, the Vietnamese authorities dis- 
covered that commitments previously made to busi- 
ness organizations and individuals authorizing 
them to convert piasters into foreign currencies 
for the transfer of profits and savings were rap- 
idly depleting Viet-Nam's free foreign exchange. 
American aid was being offered in sufficient 
amounts to cover the essential import require- 
ments of the country, but American aid could not 
be used to finance profit transfers and other in- 
visible transactions. 

Consequently, in May 1955 the Vietnamese Gov- 
ernment virtually suspended all such transfers. 
This soon created serious dislocations. Accu- 
mulations of profits and individual savings which 
the owners were in the habit of transferring 
abroad tended to depress the value of the piaster 
and inevitably encouraged black-market transac- 
tions. At the same time complete inability to 
transfer legitimate business profits was recognized 
as inequitable and as discouraging to investment 
and business enterprise. Therefore the Vietnam- 
ese monetary authorities created the free market 
in which authorized firms and individuals are al- 
lowed to sell piasters at a rate which has proved 
throughout the past several years to be approxi- 
mately double the official exchange rate. This, 
however, has met most of the needs of the busi- 
ness community and has tended in the long run 
to strengthen the value of Vietnamese money in 
international exchange. 

There remained, however, through 1955 and 
1956, other sources of inflationary pressure, most 
notably the fact that throughout the first 2 years 
the Vietnamese Government was unable to main- 
tain a balanced budget. Both the central govern- 
ment and regional governments were given the 
right of overdraft on the national treasury, and 
this they exercised in providing governmental 
services deemed essential. 

Recognizing the danger of such a practice, the 
Vietnamese Government in 1957 developed, with 
the help of Michigan State University USOM 
technicians, a greatly improved system of budget 
administration. In April 1957 new and heavier 
taxes were imposed on imports. The budgetary 
and tax reforms together put an end to deficit 
financing. In fact the reforms were applied with 
such vigor that by the end of the year the Gov- 
ernment had accmnulated a substantial surplus. 
These corrective financial measures were not with- 
out hardship in the business community, but they 
restored stability and armed the Government with 
new resources with which to increase its develop- 
ment program. 

About project aid this year much might be said. 
For example, in 1957 resettlement of the high 
plateau, a major element in President Ngo Dinh 
Diem's present economic program, was initiated 
by a land development project patterned on the 
methods and teclmiques of the refugee program. ^ 
Equipment and supplies worth $3 million, and $7 


Deparfment of State Bulletin 

million in local currency, were allocated to the 
land development project by American aid. 

Also notable in the period was the number of 
basic surveys provided by American aid — sur- 
veys laying the foundation for long-range de- 
velopment. Tliese mcluded studies of the sugar 
industry, the electric power requirements of the 
country, the Nong Son coal deposits, and tlie 
paper industry, and a comprehensive general m- 
dustrial survey. 

Fourth Year— 1957-58 

Thus the foundation was laid for increased 
American aid to industrial development in Viet- 
Nam, and this indeed became our foremost ob- 
jective during the year beginning in October 1957. 
The year 1958 saw the initiation of the most im- 
portant aid-financed project in the industrial 
field — the Industrial Development Center. This 
is an autonomous governmental organization 
established to provide technical advice and as- 
sistance and credit for private industrial 
development. The USOM project provides ad- 
ministrative support and the services of a firm of 
American industrial engineers. It has also en- 
dowed the center with a capital fund of $6 million 
and 120 million piasters. 

But our most extensive support to industry has 
been provided through nonproject aid. As I 
pointed out earlier, a substantial proportion of 
the imports financed by American aid has taken 
the form of spare parts and machinery for eco- 
nomic development. Tliis has included equip- 
ment for dozens of small industries in Viet-Nam 
and also for a few of substantial size. In fact, 
the use of American aid for this purpose has been 
limited only by the willingness of private inves- 
tors to order and pay in piasters for new capital 
equipment and the willingness of the Vietnamese 
Government to grant the necessary licenses. By 
way of illustration of the use to which the non- 
project aid resources can be put, I cite the ex- 
ample of the jute weaving company in Viet- 
Nam. This private establislmient, investing its 
own piaster capital, imported over the course of 
2 or 3 years $11^ million worth of new machinery 
with which it modernized and more than doubled 
the capacity of its plant. Many other small 
businesses have done the same thing without fan- 
fare and without special govenmiental assistance. 

In addition a newly organized, privately owned 
cotton spinning and weaving company is obtain- 
ing its necessary capital equipment in the same 

Unfortunately, however, there are few Viet- 
namese-owned enterprises with the capital and 
experience to launch large undertakings. There 
are in Viet-Nam some foreign-owned enterprises 
with the means and willingness to undertake new 
investments, but it has not been easy for the 
Vietnamese Government to approve their propos- 
als because of the already very heavy prepon- 
derance of foreign ownership of business in Viet- 
Nam. To find a way around this difficulty the 
Government of Viet-Nam adopted the principle 
of the mixed company, in which the private 
owner holds as much as a 49 percent interest and 
may be given a managerial contract which will 
allow him to operate the business, for a tem- 
porary period at least, as an agent of the Gov- 
ernment as well as in his own behalf. This has 
proved a satisfactory solution to industries in the 
fields of glass bottle manufacturing, sugar pro- 
duction, and lumbering, among others. 

Viet-Nam's Rubber Industry 

In concluding this chronological review I 
should like to say a word about what is really 
Free Viet-Nam's greatest industry — the produc- 
tion of natural rubber. Eubber is Viet-Nam's 
largest export. Rubber production has been 
maintained and, in fact, in the past few years 
has reached the highest levels in history. The 
rubber plantations are for the most part large and 
well managed, and they produce rubber of high 
quality. They are largely owned by well- 
established French companies. In common with 
other industries in the country they have ob- 
tained chemicals, equipment, and other imported 
essentials through American commercial aid but 
otherwise have not benefited by American as- 

In some newly independent, former colonial 
territories enterprises of this sort have been the 
subject of hostility and discrimination on the part 
of the new nationalist government and have even 
suffered expropriation. In Viet-Nam this has 
not been the case. On the contrary, President 
Ngo Dinh Diem has recognized the economic im- 
portance of these enterprises to his coimtry and, 
despite the risk of demagogic political attack. 

May 71, 1959 


has given the foreign rubber plants positive en- 
couragement and has even offered Government 
loans to encourage the maintenance and expan- 
sion of rubber production. 

In breaking this review of the American aid 
program into chronological periods I hope I have 
not prevented you from seeing the continuity 
which has cliaracterized the program. Most of 
the xuidertakings I have described have extended 
over more than 1 year. They have been related 
to one another and to other projects which I have 
not even mentioned. For example, throughout 
the entire period extensive and constructive pro- 
grams were conducted in the fields of education 
and public health. Everything we have done has 
been worked out in concert with the Vietnamese 
authorities and has been designed to deal with 
problems to which the Vietnamese Government 
attached priority. 

In one respect Viet-Nam differs from many 
other countries which have received large-scale 
American aid in the past few years. Virtually 
all the financial assistance Viet-Nam has received 
from the United States has been provided by the 
mutual security program and has been admin- 
istered by the International Cooperation Admin- 
istration. Viet-Nam has had no Export-Import 
Bank loans and no credit from the International 
Bank for Eeconstruction and Development. In 
the 4 years about which I have been talking Viet- 
Nam purchased only $6 million in surplus agri- 
cultural commodities under Public Law 480, and 
it received its first commitment from the Develop- 
ment Loan Fund on February 9, 1959. 

On the other hand, in the 4 years I have de- 
scribed so hastily, Viet-Nam received substantial 
technical and economic aid from France and has 
the services of several hundred secondary and 
university-level teachers from the French Cul- 
tural Mission. The United Nations and its sev- 
eral specialized agencies have supplied a variety 
of technical assistance, and aid, both economic 
and teclmical, has come from the donor countries 
of the Colombo Plan. Other nations, such as 
Italy, Germany, and the Republic of China, have 
sent teclinical missions and have offered scholar- 
ships or other forms of technical assistance. Al- 
though the United States has provided the bulk 
of the financial assistance during this period, 
teclinical aid from these other sources has been 

invaluable and has often been combined with 
American aid to make them both more effective. 

Appraising Viet-Nam's Accomplishments 

How should one appraise the work of these 
past 4 years in Viet-Nam? If it is simply the 
effectiveness of American aid on which a judg- 
ment is to be made and the wisdom with which it 
is administered, I am hardly the person to under- 
take the task. I do feel qualified, however, to say 
a closing word about the accomplishments of 
Viet-Nam in those areas in which American as- 
sistance played an important role. 

In the first place, Viet-Nam is a free nation 
today, stronger militarily, politically, and ad- 
ministratively than most people thought possible 
4 years ago. In the second place, Viet-Nam has 
made the transition from colonial status and an 
inflated wartime economy to political indepen- 
dence and a normal level of economic activity 
without a fall in the standard of living and with- 
out loss of political or economic stability. In the 
third place, agricultural production has been re- 
stored, and refugees equal to 7 percent of the 
population have been received and resettled. Viet- 
Nam has been slow to return to the world rice 
export market because of increased domestic con- 
sumption, although actual production reached 
and surpassed prewar levels. In the fourth place, 
much of the physical destruction caused by the 
civil war and the years of occupation has been 
repaired. Fifth, a program of industrial develop- 
ment has been launched. Finally, the nation has 
been enabled to maintain the military strength 
required by the constant threat of Communist 

In fact so much has been accomplished in the 
past 4 years that one can easily forget that Viet- 
Nam remains a divided country, not enjoying the 
blessings of peace but protected only by an armi- 
stice. The threat of subversion and violence 
within and of infiltration from without and the 
danger of actual invasion are ever present. This 
is why the Government of Viet-Nam is sometimes 
obliged to put considerations of security ahead of 
economic objectives and why defense continues to 
absorb such a large proportion of the total na- 
tional budget and of American aid. 

Many problems remain, and some of mutual 
interest are yet to be resolved, but, so long as 


Department of State Bulletin 

Viet-Nam has a leader with the courage, moral 
strength, and determination of President Ngo 
Dinh Diem, the nation can face the future with 
hope and confidence. So long as these threats to 
national security remain, however, Viet-Nam will 
need the help of the United States and of her 
other friends in the free world. If we can judge 
the future by the past, Viet-Nam will deserve our 

U.S. and Viet-Nam Sign 
Atomic Energy Agreement 

Press release 274 dated April 22 

The Governments of Viet-Nam and the United 
States on April 22 signed an agreement for co- 
operation for research in the peaceful uses of 
atomic energy. Signing the agreement for the 
United States were Assistant Secretary of State 
for Far Eastern Affairs Walter S. Robertson and 
Chairman John A. McCone of the U.S. Atomic 
Energy Commission. Ambassador Tran Van 
Chuong signed for Viet-Nam. The signing took 
place at the Department of State. 

The agreement provides that the Government 
of the United States will furnish the Government 
of Viet-Nam information on the design, construc- 
tion, and operation of nuclear research reactors 
and their uses in research, development, and en- 
gineering projects. Industrial firms, other or- 
ganizations, and private citizens are permitted to 
supply appropriate nuclear equipment and re- 
lated services under arrangements which they 
may conclude with the Vietnamese Government 
or authorized private organizations and individ- 
uals under its jurisdiction. 

Under the terms of the agreement the U.S. 
Atomic Energy Commission may lease to the 
Vietnamese Government up to 6 kilograms (13.2 
pounds) of contained U-235 in uranium enriched 
up to a maximum of 20 percent U-235 for use in 
research reactors. Viet-Nam assumes responsi- 
bility for safeguarding the fissionable material in 
its possession. The agi-eement also provides for 
the exchange of unclassified information in the 

research reactor field, in related health and safety 
matters, and in the use of radioactive isotopes in 
physical and biological research, medical therapy, 
agriculture, and industry. 

Looking to the future the Governments of the 
United States and Viet-Nam affirm in the agree- 
ment their common interest in availing themselves 
of the facilities and services of the International 
Atomic Energy Agency. 

The agreement will come into effect after pro- 
cedural and statutory requirements of both coun- 
tries have been met. 

U.S. Increases Shipments 
of Grain to Ethiopia 

Press release 282 dated April 23 

The United States is increasing its emergency 
assistance shipments of grain to Ethiopia to 
19,500 tons under an agreement signed at Wash- 
ington on April 23. The agreement provides for 
the shipment of 5,500 tons of sorghum and 4,000 
tons of wheat for distribution in the Ethiopian 
provinces of Harar and Tigre, adding to the 5,000 
tons of wheat and 5,000 tons of sorghum for Eri- 
trea under a similar agreement signed last 
March 6. 

Ambassador Zaude Gabre Heywot signed the 
agreement for the Imperial Ethiopian Govern- 
ment at the offices of the International Coopera- 
tion Administration. The grain is being pro- 
vided by ICA as an emergency assistance grant 
mider title II of Public Law 480 (the Agricultural 
Trade Development and Assistance Act). It will 
be used by Ethiopia to relieve threatened food 
shortages in Harar and Tigi-e caused by severe 
locust infestation and drought. 

As in the case of grain now being delivered 
to Eritrea, where a similar emergency exists, 
Ethiopia will distribute the supplies free to needy 
persons who lost their crops and cannot purchase 
gram for their own consumption. 

Arrangements are under way to get the supplies 
to Harar and Tigre as soon as possible. 

May II, 1959 


The International Geophysical Year in Retrospect 

hy Wallace W. Atwood, Jr. 

On December 31, 1958, the International Geo- 
physical Year, widely known as the IGY, came to 
an end. For a period of 18 months starting on July 
1, 1957, and throughout the 5 years of planning 
that had gone before, a unique example of interna- 
tional cooperation was given to the world. In spite 
of national rivalries, ideological tensions, and wars 
both hot and cold, scientists of East and West — 
and those of neutral nations in between — pooled 
their skills and their learning to push out the 
frontiers of knowledge for the benefit of all man- 
kind. Through their concerted efforts quantities 
of basic scientific data were gathered, which will 
form the basis of future research projects for years 
to come. Important new discoveries were made 
regarding man's environment, the earth itself, the 
oceans, and the atmosphere. Through the launch- 
ing of artificial earth satellites the IGY brought 
man to the threshold of a new era of exploration : 
the exploration of outer space. 

To bring all this about required the services of 
some 30,000 scientists and technicians and as many 
amateur observers, representing most of the na- 
tions on earth. Some 4,000 primary sites and sev- 
eral thousand auxiliary ones covered every part of 
the world, extending from pole to pole and reach- 
ing into many hitherto inaccessible spots. Expedi- 

• Mr. Atwood is Director of the Office of 
International Relations of the National 
Academy of Sciences — National Research 
Council. For an earlier article on the Geo- 
physical Tear hy Mr. A twood, see Bulletin 
of December 3, 1056, p. 880. 

tions went to some of the farthest reaches of the 
globe, and scientists from countries whose political 
leaders were snarling at each other worked on in 
amity, like the United States and Soviet Union 
weathermen who jointly staffed meteorological 
stations in the Antarctic. 

Although the IGY was conceived and carried 
out by scientists working through their nongovern- 
mental international organizations, the success 
of the undertaking depended in large measure 
on the support given by governments all over the 
world. To a greater or lesser extent, public funds 
were used to finance the various national IGY 
programs. In many instances governments pro- 
vided logistics for material and personnel. And 
each cooperated by facilitating the necessary exit 
from one country and entry into another of scien- 
tists engaged in the work and expedited the move- 
ment through customs and other national barriers 
of scientific equipment to be placed and utilized 
abroad. In these ways governments actively par- 
ticipated in the IGY. 

The precedents for the International Geophysi- 
cal Year were the First Polar Year of 1882-83 and 
its successor, the Second Polar Year of 1932-33. 
In 1950 a proposal was made that another period 
of international and interdisciplinary research be 
scheduled at the 25-year interval (1957-58) in- 
stead of the 50-year interval. There were three 
good reasons for this advance scheduling: (1) The 
warehouse of basic data essential to progress in 
science was nearly empty ; (2) travel at supersonic 
speeds and the rapid development of new com- 
munications systems posed problems which re- 
quired basic information concerning the earth, the 


Department of State Bulletin 



(International Unions) 



Biological Sciences 

Pure and Applied Chemislry 

Pure ond Applied Physics 

Geodesy and Geophysics 




History ond Philosophy of Science 


Scientific Radio 

Physiological Sciences 

Theoretical ond Applied Mechanics 



ICSU Abstracting 

ICSU Publications 



Infl Geophysicol Yeor (CSAGI) 
Antarctic Reseorcti (SCAR) 
Oceanic Reseorch (SCOR) 
Contominotion by Extro-Terres- 

trial Exploration (CETEX) 
Space Reseorch (COSPAR) 

Radio meteorology 
Solor ond Terreslriol 

Applied Radioactivity 
















Germon Fed. Rep. 

Great Britain 










New Zeolond 












Union of South 

United Arab 

United States 
Vatican City 


Federolion of 
and Geophysical 
Services (FAGS) 

FIGURE 1. The organization of ICSU as visualized by the author; no official chart exists. The general assembly is 
the top administrative body composed of delegates appointed by the scientific and national members. The bureau 
and executive board conduct the affairs of ICSU between triennial assemblies. The office of the secretariat is at 
The Hague. 

oceans, and the upper atmosphere; and (3) a pe- 
riod of unusual activity on the surface of the sun 
was predicted for 1957-58, which would provide 
an excellent opportunity to observe some of the 
phenomena that affect man's environment on 
planet earth. 

Role of International Council of Scientific Unions 

Planning went forward imder the guidance of 
the International Council of Scientific Unions 
(ICSU). This is a nongovernmental organiza- 
tion which helps to coordinate activities in inter- 
national science. It comprises 13 international 
scientific unions, from which it takes its name, 
together with 45 member nations, each represented 
by a suitable adhering organization. Generally, 
the adhering national unit is the national academy 
of science or research council or a similar body; 

for the United States it is the National Academy 
of Sciences. The organizational structure of this 
Council is shown in figure 1. 

The overall plan for the IG Y called for studying 
3 large areas of science, covering 11 different disci- 
plines. The first of the three areas related to 
studies of the earth itself; the second covered 
weather and climate, including the events and 
processes on the earth's surface and in the lower 
atmosphere that make up the important "heat and 
water budget"; the third took in the upper at- 
mosphere, extending out to the sun and on into 
outer space itself. 

Within this general plan the scientists of each 
country were invited to set forth the research they 
would undertake as their part of the IGY. In the 
United States it was the National Academy of 
Sciences that called together a gi'oup of scientists 
to plan a national program. This group was called 

May n, 1959 


the U.S. National Committee for the International 
Geophysical Year. Similar committees were es- 
tablished in other countries, each charged with the 
responsibility of developing a national program 
to be carried out in 1957-58. Then, in a series of 
meetings called by ICSU's Comite special de 
I'annee geophysique Internationale (CSAGI), the 
various national plans were coordinated by volun- 
tary adjustment to make sure that all important 
geographic areas and scientific disciplines were 
suitably covered. These meetings for coordina- 
tion were held annually during the 5-year period 
of preparation for the IGY and contributed im- 
measurably to the success of the entire under- 

Financing the meetings of CSAGI and the in- 
ternational secretariat of the IGY in Brussels was 
the responsibility of ICSU. The amount needed 
averaged about $50,000 a year and was obtained 
from the United Nations Educational, Scientific 
and Cultural Organization (UNESCO) and from 
the national IGY participating committees. It 
is significant to note that ICSU's request for sup- 
port was oversubscribed and a substantial bal- 
ance remains to carry forward the post-IGY 
program of publication. 

Because of the unique structure and financing 
of ICSU and its unions, a flow chart showing the 
income and expenditures of the organization has 
been prepared and reproduced as figiu-e 2. The 
Special Committee for the IGY (CSAGI) appears 
at the extreme right of the chart. 

In every activity connected with United States 
participation in the IGY, there was nationwide, 
exemplary cooperation by all members of the sci- 
entific community. Universities, research insti- 
tutions, industrial laboratories, foundations, and 
individual scientists participated unselfishly in 
implementing the program developed by the U.S. 
National Committee. At the same time the Na- 
tional Science Foundation took over tlie important 
task of fund raising and of representmg the needs 
of the IGY before the U.S. Congress and execu- 
tive agencies of the Government. A total of $43 
million was appropriated by Congress in support 
of the scientific aspects of the United States IGY 
program. Industrial, commercial, and other or- 
ganizations and various agencies of the Govern- 
ment provided help. For example, the establish- 
ment and maintenance of scientific stations in 

Antarctica, the study of the oceans, and the ex- 
ploration of outer space by rockets and satellites 
would have been impossible without the full sup- 
port and participation of the military services, 
which provided scientific and technical personnel, 
planes and ships, essential equipment, housing fa- 
cilities, and many other necessary supplies and 
services. Similarly, it would have been impos- 
sible to arrange certain of the important cooper- 
ative programs if the Department of State, 
through its Office of the Science Adviser, had not 
contributed its experienced diplomatic hand in the 
conduct of bilateral negotiations with foreign 

Principle of Political Noninterference 

The number of nations whose scientists partici- 
pated in the IGY grew constantly, from 26 in 
July 1954 to a total of 66 three years later. Every 
inhabited continent and all parts of the world 
were represented. Large and small nations were 
able to help their scientists participate in the IGY, 
each group making a contribution consistent with 
such factors as available facilities, trained per- 
soimel, and financial resources. 

There was one incident that threatened the 
purely scientific character of this international co- 
operative effort. In the second half of the IGY 
the Chinese Communist authorities at Peiping, 
who had previously permitted their scientists to 
join this effort, withdrew after scientists from 
Taiwan were accepted by CSAGI into the IGY. 
The Peiping scientists, prompted by political mo- 
tivations of their regime, had asked that scientists 
from Taiwan be barred, but CSAGI refused to 
allow the IGY cooperative enterprise to be de- 
spoiled by this attempt at political pressure. 

At this point it is relevant to call attention to 
one of ICSU's basic principles recently reaffirmed 
at the 1958 general assembly held in Washington, 
namely that ICSU and its affiliated bodies wel- 
come participation in their activities of scientists 
from any country or territory and that such par- 
ticipation shall not carry any implication what- 
soever with respect to recognition of the govern- 
ment of the comitry or territory concerned. This 
principle made possible the virtually universal 
enrollment of national scientific communities in 
the IGY. It showed up on occasion in such anom- 
alies as the presence of scientists from the Soviet 


Department of State Bulletin 

Union, Poland, and Communist China at tlie 1956 
CSAGI meeting at Barcelona; had the orienta- 
tion of the meeting been political, this would have 
been impossible. The Barcelona meeting, of 
course, took place before Peiping spoiled the 
otherwise perfect record of political noninterfer- 

Availability of Information Assured 

ICSU also insists on free and promjat dissemi- 
nation of information. Therefore it was mutu- 
ally agreed from the start that the data gathered 
during the IGY would be available to the scien- 
tists and researchers of all nations. This agree- 
ment provided assurance that the maximum gain 

would come from the collected information, since 
everyone who might have use for it would also 
have access to it. 

To facilitate access to all information CSAGI 
established three World Data Centere, to which 
observations would be sent. One center was set 
up in the United States, the second in the 
U.S.S.R., and the third in AVesteni Europe, with 
branches of the latter in Japan and Australia. 

One of the primai-y reasons for the IGY, ad- 
vanced by the scientists, was the need to obsei've 
certain geophysical phenomena simultaneously 
from many localities scattered over the surface of 
the earth. To attain such simultaneity of obser- 
vations would require worldwide cooperation and 
also a worldwide communications system that 






Speciol Contnbulions 


Gronts. Controcfs, 
and Subventions 









Special Contributions 

FIGURE 2. Flowchart showing to scale the income and expenditures of ICSU and its member unions in 1957 (all 
figures are approximate). Over 62 percent of the total income was used for union activities; 30 percent for special 
committees, permanent services, and related projects; and about 7 percent for secretariat and administrative 
services. The unions and special committees identified by initials only are named in figure 1. 

May 11, 1959 


would link togetlier the IGY observers wherever 
they might be — in Antarctica, high in the Andes 
of South America, at sea on an oceanographic ves- 
sel, or at observation stations distributed over five 

Accordingly the IGY planners in cooperation 
with the International Scientific Radio Union — 
URSI (Union radio scientifique internationale) — 
developed a World Days warning-alert commu- 
nications system with headquarters at Fort Bel- 
voir, 15 miles south of Washington, D.C. Cer- 
tain days known as World Days were selected in 
advance for intensive worldwide observation of 
particular phenomena. Other days were selected 
on short notice as interesting phenomena devel- 
oped, such as sudden flareups on the surface of the 
sun. Occasionally an alert was issiied when a 
fast-developing storm was spotted. This permit- 
ted observers over a large area to track the course 
of the storm and thus learn a little more about the 
problems of weather forecasting. 

The role of ICSU in the IGY was very real al- 
though sometimes overlooked by those imfamiliar 
with the pattern of international cooperation de- 
veloped by ICSU over the past 40 years. This 
role and the sequence of IGY operations are 
shown in figure 3. National planning and inter- 
national program coordination are featured at the 
left in the chart; research, evaluation of data, and 
publication of results are shown at the right. 

Post-IGY Activities 

Without ICSU and its member vmions the IGY 
might never have been initiated and the ambitious 
post-IGY programs, currently under way, might 
have been delayed for many years. It was ICSU 
with its 45-nation membership and 13 unions 
which met in Washington in October 1958 to chart 
post-IGY activities. On that occasion it was de- 
cided to establish a new Special Committee for 
Inter-Union Cooperation in Geophysics, to be 
known as the SCG, to guarantee continuance of 
international collaboration in geophysics along 
the lines begun in CSAGI under the IGY. This 
new committee will be immediately concerned 
with publication of the results of the IGY. In 
addition, ICSU established the Special Commit- 
tee on Oceanic Research (SCOR), the Special 
Committee on Antarctic Research (SCAR), the 
Committee on Contamination by Extra-Terres- 

trial Exploration (CETEX), the Committee on 
Space Research (COSPAR), and the Interna- 
tional Service for World Days (IWDS). 

Thus ICSU, even before the accomplisliments 
of the IGY have been fully evaluated, has charted 
new explorations into the unknown. These pro- 
grams will be carried forward by the scientists of 
many nations working through their national 
scientific institutions and with the assistance of 
their respective governments. The several com- 
mittees of ICSU will coordinate the work in the 
same manner employed so successfully during the 

Some Scientific Achievements 

It will take many years to analyze and evaluate 
the data gathered during the IGY and to learn 
what this additional fund of scientific informa- 
tion may mean in practical effects on man's way of 
living. However, it might be well to take note 
of a few of the results that have appeared. What 
follows cannot in any sense be comprehensive, nor 
even representative perhaps, but it may give some 
idea of the magnitude and importance of the 
scientific accomplishments of the IGY. It may 
also, here and there, reveal some of the ways in 
which international scientific cooperation ex- 
tended from planning into actual operations. 

The most comprehensive attack yet on the mys- 
teries of Antarctica, joined in by Argentina, Aus- 
tralia, Belgium, Chile, France, Japan, New Zea- 
land, Norway, the Union of South Africa, the 
United Kingdom, the United States, and the 
U.S.S.R., has started to reveal the actual face of 
that continent. Beneath the ice masses, it has 
been found, lies a complex of mountainous islands 
many of which would be ocean covered if the ice 
mantle were suddenly to melt. Signs of a major 
separation between the east and west halves of the 
continent also have been discerned. A concomi- 
tant discovery is that the total of the world's ice 
and snow, most of which lies in this region, is 40 
percent greater than previously thought. The 
new estimate considerably changes what is known 
of the heat and water balance of the earth, which 
is of critical importance to present and future 

In addition, through the cooperation of observ- 
ers from all the nations conducting operations in 
Antarctica, the first comprehensive census of ant- 
arctic weather has been completed. Precise data 


Department of State Bulletin 


"t National L 
f Planning P 



Observational Period 

W World Data k 
W Centers f 

Research and 




Annals fe 


' CSAGI Reporlers^-> 

Not IGY Committees k 

Scientific Institutions! 
Individual Scientists!—^ 

Journals 1 


FIGURE 3. The pattern of IGY operation developed by CSAGI in accordance with guidelines established by ICSU. 
International coordination of national programs was accomplished by scientists from IGY participating committees 
at meetings sponsored by CSAGI. The scientific data obtained during the 18-month observational period have 
been deposited in three World Data Centers, from which they can be obtained for the purpose of research and 
evaluation by scientists of any country. The final phase of the operation is the publication of results in the Annala 
ot the International Geophysical Year and other scientific journals. 

on temperature (measured as low as —124° F.), 
pressure, hunudity, and wind direction and veloc- 
ity will permit a more accurate gaging of the in- 
fluence this region has on weather throughout the 

Scientists from many nations participated in 
the IGY oceanographic research program. Coun- 
tries from the Northern Hemisphere joined those 
bordering the Indian Ocean in studies of that 
ocean; South American and Asian countries 
shared in Pacific Ocean research; 350 tide-gage 
stations were operated by no fewer than 25 na- 
tions; and the 80 research vessels that took part 
in the cruise portions of the oceanographic pro- 
gram represented 20 diflFerent coim tries. 

Sea-level changes were measured and the 
oceanic water budget studied. In addition, im- 
portant discoveries were made concerning the be- 
havior of certain ocean currents. Three major 
countercurrents were located, clocked, and meas- 
ured: one in the Atlantic flowing deep beneath 
the Gulf Stream and two in the Pacific. All three 
shed new light on the nature of the oceans, on 
their effects on climate and weather, and on po- 
tential food resources that may become vital to 
rapidly increasing populations in young nations 
striving for orderly development. 

Deep trenches have been located beneath the 
ocean off the west coast of South America and in 
the Arctic Basin. The bottom of a vast region in 
the southeast Pacific has been found to bear a 
sludge rich in manganese, iron, cobalt, and cop- 
per, potentially of such great value that its ex- 
ploitation may not be very far off. 

Although the goal of the IGY was geophysical 
research, study in other fields of science was al- 
most inevitable. For example, one of the by- 
products of the oceanographic studies was the 
discovery in the ocean depths of a live specimen 
of a supposedly extinct presnail. The chance to 
study this creature will help biologists fill in the 
background of evolutionary history. 

Whether his belief was manifested through 
superstition, expressed in religion, or pursued 
through science, man seems always to have recog- 
nized the pervasive influence of the sun. During 
the IGY scientists of 33 nations at preselected 
vantage points throughout the world kept the sun 
under perpetual watch. As a result there now 
exists an immatched record in data and photo- 
graphs of the solar flares and all other discernible 
activity on the sun. With this record the solar 
processes can be analyzed and correlated with ter- 
restrial phenomena, some of which, like the effects 

May I J, J959 


of radio communication, have long been known 
but not fully understood. 

Monitoring of auroral activity by cameras, 
radar, and other equipment has turned up data 
that seem to bear on the emission of cosmic rays 
from the sun during flares. Joint United States- 
New Zealand observations of the aurora have led 
to the conclusion that lithium is present in the 
high atmosphere in addition to the elements pre- 
viously known. 

With the help of modern technology to supple- 
ment traditional methods, significant discoveries 
have been made regarding the upper atmosphere. 
More than 300 instrumented rockets have meas- 
ured density, pressure, temperature, and composi- 
tion up to a height of some 250 miles. One result 
has been the discovery in the lowest region of the 
ionosphere of X-rays which apparently cause in- 
creased electrical activity that can sometimes black 
out radio communications ; studies made during an 
eclipse of the sun suggest its corona as the source 
of these rays. Cosmic-ray trajectories reveal 
strong deviations from what should be expected 
according to the accepted description of the earth's 
magnetic field; it appears now that the latter is 
pulled somewhat askew by the effects of magnetic 
fields surrounding other bodies in space. 

In addition a large region of powerful radiation 
trapped within the earth's magnetic field has re- 
cently been located 1,000 to 3,000 miles above the 
earth's surface and given the name of the Van 
Allen Radiation Belt. This radiation helps to 
explain certain geomagnetic variations and au- 
roral displays; its presence must be taken into 
account in the preparation for space travel. 

Impact of the IGY 

Tlie launching of satellite vehicles during the 
IGY as scientific probes into space opened a new 
era of exploration and discovery. At this stage 
scientists are still gathering information — infor- 
mation that adds to an understanding of the origin 
of the solar system, perhaps of matter itself. A 
long step beyond, but nevertheless a step no longer 
out of reach or sensible thought, is man's own pene- 
tration of new worlds, at least of the moon and the 
nearby planets. How far in the future this devel- 
opment lies is not yet clear, but the use of experi- 
mental animals in recent test flights suggests that 
the first space trips by man may be imminent. 

The stimulation to thought and imagination 

which has come with the opening of new horizons 
through the IGY has few parallels in recent his- 
tory. It has renewed interest in study and re- 
search, and more people have come to recognize the 
importance of pure science, not just its applica- 
tions in technology. In the United States the edu- 
cational system is responding to the impetus gen- 
erated by the IGY. Parents, school boards, and 
legislators have become more aware of the impor- 
tance of science training for the youth of the coun- 
try. By the same token there has been a rising 
tide of demands that higMy qualified students be 
given better preparation for careers in science. 
The result could well be a substantial change for 
the better in the educational system. 

Citizens generally have become more keenly 
aware of the contributions being made by scien- 
tists and by scientific institutions. The notable 
leadership provided by the National Academy of 
Sciences has brought deserved recognition for 
that body. Similarly, the National Science 
Foundation and the scientific organizations of the 
country, both governmental and private, have 
acquired greater stature and importance in the 
public eye. 

It has been suggested in high tribunals that the 
IGY has provided a pattern of international co- 
operation which should be emulated. If this is 
true, it is because the scientists involved were men 
of good will and because they developed together 
the procedures necessai'y to achieve their com- 
mon objectives. At no time did the scientists al- 
low political differences to block their course. 
Through their national academies and other sci- 
entific institutions they interested their respective 
governments in the IGY plans and obtained the 
cooperation and financial sujjport which they re- 
quired. In this manner the IGY scientists devel- 
oped a team which possessed the strength and pres- 
tige necessary to carry thi"ough the most ambitious 
program of scientific exploration the world has 
ever known. 

These well-tested methods, developed by ICSU 
and its unions and so effectively employed during 
the IGY, are ideally suited for the furtherance 
of international cooperation in science. For this 
reason it may be hoped that the United Nations 
and its specialized agencies, when they contem- 
plate the initiation of international scientific ac- 
tivities, will call upon organizations such as ICSU 
for advice and assistance. If this should happen, 


Deparfment of State Bulletin 

the IGY, in addition to making a significant con- 
tribution to science and human welfare, will have 
brought to the United Nations a valuable tool for 
the conduct of international scientific relations. 

For the United States, the IGY has further 
demonstrated the significance of scientific factors 
in formulating and executing foreign policy. This 
is apparent in the day-to-day work of the Depart- 
ment of State and in pronouncements of congres- 
sional committees and the executive branch of the 
Government. This greater interest in science on 
the part of Government has been developing ever 
since the first atomic bomb was dropped in 1945, 
but it was the IGY with its associated scientific and 
technological achievements (especially those of the 
Soviet Union) which clearly indicated that science 
could facilitate the attainment of peaceful objec- 
tives of foreign policy. 

It is gratifying to record that in 1950, more 
than 8 yeai's ago, the Department of State recog- 
nized the growing importance of science by cre- 
ating the Office of the Science Adviser and by 
appointing science attaches to several embassies 
in Western Europe. These actions were taken 
following a careful study which resulted in the 
publication of the Berkner report entitled Science 
and Foreign Relations} Although the Depart- 
ment's science office was drastically curtailed in 
1955, it since has been revived and strengthened. 
Within the next few months it is expected that a 
total of eight science officers will be stationed at 
United States missions overseas.^ 

Additional developments indicating the gi'ow- 
ing recognition of science are seen in the creation 
of the President's Science Advisory Committee 
late in 1957 and the establisliment of the National 
Aeronautics and Space Administration in October 
1958. Both actions may be traced either directly 
or indirectly to activities of the IGY which 
pushed forward the frontiers of science with tm- 
usual speed and opened the door to outer space 
with such force as to jolt the nations of the world. 

This is the story of the IGY in retrospect. It 

^ In 1949 Lloyd V. Berkner, president of Associated 
Universities, Inc., was asked by the Secretary of State to 
survey the role of the Department in science. His re- 
port became the basic reference on science policy for the 
Department. Mr. Berkner later became vice president 
of the international committee for the IGY. 

' For a Department announcement, see Bulletin of 
Dec. 29, 1958, p. 1048. 

was a good program, carefully planned and mag- 
nificently executed. Through its successes the 
world has gained new scientific knowledge of un- 
told wealth. It also opened the eyes of many 
persons to the significance of science in national 
and world affairs. But even more important to 
the future of mankind on this planet are the hap- 
piness and satisfaction that the scientists found 
in working together. As a consequence, peaceful 
cooperation among people of all nations is a little 
closer to realization. 


Current Actions 



Telegraph regulations (Geneva revision, 1958), annexed 
to the international telecommunication convention of 
December 22, 1952 (TIAS 3266), with appendixes and 
final protocol. Done at Geneva November 29, 1958.' 
Notification of approval: Switzerland, February 26, 


International wheat agreement, 1959, with annex. Open 
for signature at Washington April 6 through April 24, 

Signatures: Portugal, April 14, 1959; Denmark, April 
15, 1959 ; India, April 17, 1959 ; Switzerland and Vati- 
can City, April 20, 1959; Federal Republic of Ger- 
many, Ireland, Norway, Philippines, and Union of 
South Africa, April 21, 1959 ; Belgium, Belgian Congo 
and Ruanda-Urundi, Canada, Indonesia, Israel, Lux- 
embourg, New Zealand, Sweden, United Arab Re- 
public, and United States, April 22, 1959 ; Cuba, Do- 
minican Republic, France, Greece, Haiti, Italy, Japan, 
and Mexico, April 23, 1959 ; Argentina, Australia, 
Austria, Brazil, Korea, Netherlands,'' Peru, Spain, and 
United Kingdom," April 24, 1959. 


Agreement amending the Air Force Mission agreement of 
June 30, 1956 (TIAS 3604), and the Army Mission 
agreement of June 30, 1956 (TIAS 3605). Effected by 
exchange of notes at La Paz April 2 and 3, 1959. 
Entered into force April 3, 1959. 

' Not in force. 

' With declaration. 

May 7 J, 7959 



Agreement relating to communications facilities at Cape 
Dyer, Baffin Island, to support the Greenland extension 
of the distant early warning system. Effected by ex- 
change of notes at Ottawa April 13, 1959. Entered into 
force April 13, 1959. 


Agreement amending the Army Mission agreement of 
February 21, 1949, as extended (TIAS 1892 and 3146), 
the Air Force Mission agreement of February 21, 1949, 
as extended (TIAS 1893 and 3146), and the Naval 
Mission agreement of October 14, 1946, as extended 
(TIAS 1.563 and 3146). Effected by exchange of notes 
at Bogotd February 18 and March 31, 1959. Entered 
into force March 31, 1959. 


Agreement relating to investment guaranties tinder sec- 
tion 413(b) (4) of the Mutual Security Act of 1954, as 
amended (68 Stat. 847; 22 U.S.C. 1933). Effected by 
exchange of notes at Tunis March 17 and 18, 1959. 
Entered into force March 18, 1959. 

United Arab Republic 

Agreement concerning the exchange of parcel post and 
regulations of execution. Signed at Cairo December 
30, 1958, and at Washington January 13, 1959. Enters 
into force on a date to be mutually settled between the 
po.stal administrations of the two countries. 
Approved and ratified by the President: April 17, 1959. 


Research reactor agreement for cooperation concerning 
civil uses of atomic energy. Signed at Washington 
April 22, 1959. Enters into force on date on which each 
Government receives from the other written notifica- 
tion that it has complied with statutory and constitu- 
tional requirements. 

U.S. and Mexico Recess 
Air Transport Talks 

Press release 286 dated April 24 

The talks between the Governments of the 
United States and Mexico for the purpose of 
reaching an agreement concerning a system to 
regulate air transport between the two countries 
subsequent to June 30, 1959, were recessed on 
April 24. 

The U.S. and Mexican delegations have been 
meeting daily in Mexico City since April 6. They 
have engaged in a frank and friendly exchange 
of views covering experience under the 1957 Pro- 
visional Air Transport Agreement^ and have 
made notable progress toward arriving at a mu- 
tually agreeable understanding. However, both 
delegations felt the need to confer further with 
their respective Governments. They agreed on a 
short recess. 

The recessed talks may be resumed at any time 
on the initiative of either delegation. 



The Senate on April 21 confirmed Christian A. Herter 
to be Secretary of State. (For biographic details, see 
press release 277 dated April 22.) 


Parker Gilbert Montgomery as Special Assistant to 
the Deputy Under Secretary for Administration, effective 
May 1, 1959. (For biographic details, see press release 
276 dated April 22.) 


Joseph L. Brent as director of the U.S. Operations Mis- 
sion, Morocco, effective April 20, 1959. (For biographic 
details, see press release 273 dated April 20.) 

Norman Burns as director of the U.S. Operations Mis- 
sion, Jordan, effective April 26. (For biographic details, 
see press release 287 dated April 24.) 

^ Treaties and Other International Acts Series 3776. 

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

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

Releases issued prior to April 20 which appear 
in this issue of the Bulletin are Nos. 261 and 262 
of April 13 and 270 of April 17. 


Consulate at Tananarive reopened (re- 

Dillon : return from SEATO meeting. 

Brent designated director, USOM, 
Morocco (biographic details). 

Atomic energy agreement with Viet- 

Berlin medical center (rewrite). 

Montgomery appointed Special Assist- 
ant (biographic details). 

Herter confirmed as Secretary of State 
(biographic details). 

U.S. delegation to OAS Committee of 
21 (rewrite). 

Investment agreement with Malaya. 

Herter : remarks to Department per- 

Passports for newsmen for travel to 
Communist China. 

Grain to Ethiopia. 

Chiefs of missions at Santiago. 

Eisenhower : message to American 
Federation of Arts. 

King of Belgium visits U.S. (rewrite). 

Air transport negotiations with Mex- 
ico recessed. 

Burns designated director, USOM, 
Jordan (biographic details). 

*Not printed. 

fHeld for a later issue of the Bulletin. 


























Departmenf of State Bulletin 

May 11, 1959 

American Republics 

Comments on the Responsibility of States (Becker) . 
Inter-American Progress Ttirough tlie Organization 

of American States (Rubottom) 

U.S. Ambassadors Meet at Santiago 

Asia. Under Secretary Dillon Returns From Meet- 
ings in Far East (Dillon) 

Atomic Energy. U.S. and Viet-Nam Sign Atomic 
Energy Agreement 

Aviation. U.S. and Mexico Recess Air Transport 

Belgium. King Baudouin of Belgium Visits United 

China, Communist. U.S. Extends Validations for 
Newsmen To Go to Communist China 

Department and Foreign Service 

Appointments (Montgomery) 

Confirmations (Herter) 

Designations (Brent, Burns) 

Secretary Acknowledges Greetings of Department 
Personnel (Herter) 

U.S. Ambassadors Meet at Santiago 

Economic Affairs 

Comments on the Responsibility of States (Becker) . 

International Commerce and the Paths to Peace 

World Trade Week, 1959 (text of proclamation) . . 

Educational Exchange. Daniel Hofgren Appointed 
to Board of Foreign Scholarships 

Ethiopia. U.S. Increases Shipments of Grain to 

Germany. Berlin Medical Center Design Com- 

International Information 

President Sends Congratulations to American Fed- 
eration of Arts 

U.S. Extends Validations for Newsmen To Go to 
Communist China 

International Law. Comments on the Responsibil- 
ity of States (Becker) 

International Organizations and Conferences 

Inter-American Progress Through the Organization 
of American States (Rubottom) 

The International Geophysical Tear in Retrospect 

Index Vol. XL, No. 1037 

Jordan. Burns designated director of U.S. Opera- 
666 tions Mission 690 

Mexico. U.S. and Mexico Recess Air Transport 

659 Talks 690 

665 Morocco. Brent designated director of U.S. Opera- 
tions Mission 690 

673 Mutual Security 

Berlin Medical Center Design Completed .... 672 

(381 Brent designated director of U.S. Operations 

Mission, Morocco 690 

/.r,r, Burns designated director of U.S. Operations Mis- 
690 . -_ 

sion, Jordan 690 

U.S. Increases Shipments of Grain to Ethiopia . . 681 

672 United States- Vietnamese Cooperation: The ICA 

Program Since 1955 (Barrows) 674 

673 Passports. U.S. Extends Validations for Newsmen 

To Go to Communist China 673 

ggo Presidential Documents 

690 International Commerce and the Paths to Peace . . 670 

QQQ President Sends Congratulations to American Fed- 
eration of Arts 672 

gYl World Trade Week, 1959 670 

665 Science. The International Geophysical Year in 

Retrospect (Atwood) 682 

666 Southeast Asia Treaty Organization. Under Sec- 

retary Dillon Returns From Meetings in Far East 

670 (Dillon) 673 

670 Treaty Information 

Current Actions 689 

-„ U.S. and Mexico Recess Air Transport Talks . . . 690 

U.S. and Viet-Nam Sign Atomic Energy Agreement . 681 


681 U.S. and Viet-Nam Sign Atomic Energy Agreement . 681 
United States-Vietnamese Cooperation : The ICA 

g72 Program Since 1955 (Barrows) 674 

Name Index 

Atwood, Wallace W., Jr 682 

g-2 Barrows, Leland 674 

Becker, Loftus 666 

Brent, Joseph L 690 

"^° Burns, Norman 690 

Dillon, Douglas 673 

666 Dulles, John Foster 671 

Eisenhower, President 670, 672 

Herter, Secretary 671, 090 

Hofgren, Daniel W 673 

®^9 King Baudouin 672 

Montgomery, Parker Gilbert 690 

682 Rubottom, Roy R., Jr 659 





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Street Address: 

City, Zone, and State: 



Vol. XL, No. 1038 

May 18, 1959 







Correspondence Between President Eisenhower and Premier 
Khrushchev 704 


Statement by Ambassador James J. Wadsworth 700 


COOPERATION • by Under Secretary Dillon .... 695 


AND PRACTICALITY • by Deputy Under Secretary 
Murphy 710 


MIDDLE EAST • by Parker T. Hart 715 


John W. Hanes, Jr. 723 

For index see inside back cover 


Vol. XL, No. 1038 • Pubucation 6820 
May 18, 1959 

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U.S. Government Printing Office 

Washington 25, D.C. 


62 Issues, domestic $8.60, foreign $12.25 

Single copy, 25 cents 

The printing of this publication has been 
approved by the Director of the Bureau of 
the Budget (January 20, 1958). 
Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
OF State Bulletin as the source will be 

The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, 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 
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which the United States is or may 
become a party and treaties of gen- 
eral international interest. 

Publications of the Department, 
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national relations are listed currently. 

America's Role in International Economic Cooperation 

hy Under Secretary Dillon ^ 

As the State Department official most directly 
concerned with administration of our mutual 
security program, I feel very much at home here 

You and I don't have to convince each other of 
the incalculable value of what we have come to caU 
"foreign aid." 

We know that, without America's economic and 
military aid during the years since World War II, 
whole sections of the world would have been lost 
to freedom. 

We know that one-third of the world's people, 
who have only recently won political independ- 
ence, are looking to us today for assistance in free- 
ing themselves from the tyranny of poverty, 
disease, and ignorance. 

We know that the urgent need to help the less 
privileged peoples of the earth achieve economic 
progress under freedom presents us with our great- 
est challenge and our greatest hope for the future. 

Wliile it is undeniably true that some of our 
fellow Americans still do not understand the over- 
riding importance of maintaining foreign aid at 
adequate levels, we know that, if the United States 
were to abandon the less developed countries, the 
future of our own people would be gravely im- 

But we also know that the American people will 
not fail to discharge their responsibility to help 
the newly developing countries if they fully com- 
prehend its urgency. Conferences such as this 
help to bring about the increased public awareness 
upon which wholehearted support of our mutual 
security program depends. 

As we meet today many Americans in public 

' Address made at the Sixth National Conference on In- 
ternational Economic and Social Development at Wash- 
ington, D.C., on Apr. 30 (press release 294). 

and private life are giving thoughtful considera- 
tion to the relative emphasis which should be 
placed upon the economic and military aspects of 
our mutual security program. I, for one, wish 
that not a single penny of our foreign aid funds 
had to be spent for military purposes. I wish that 
the state of the world would permit us to concen- 
trate all of our foreign aid on economic assistance. 
This would be consistent with the deep-rooted 
strain of humanitarian idealism which is a major 
motivating force behind our foreign aid efforts. 
But it would also be totally unrealistic. For 
security against aggression from without and sub- 
version from within is essential to survival. 

Need for a Balanced Mutual Security Program 

The urgent need for a balanced mutual security 
program is clearly evident, for example, in South- 
east Asia, an area of crucial importance to the 
future safety and well-being of the American 
people, from where I returned last week after 
representing the United States at the fifth annual 
meeting of the SEATO Council of Ministers." 

In the SEATO area the threat of Communist 
aggression, either direct or through internal sub- 
version involving the use of military force, is ever 
present. The reality of this Communist danger 
was brought home sharply at our meeting by the 
crime perpetrated against Tibet by Communist 
China's imperialistic rulers, who had solemnly 
promised at the Bandung conference in 1955 to 
respect "the rights of the people of all countries 
to choose freely a way of life as well as political 
and economic systems." All of free Asia has been 
profoundly shocked by the brutal cynicism with 
which the Chinese Communists violated their 

' Bulletin of Apr. 27, 1959, p. 602. 

Moy 78, J 959 


pledge to the courageous and deeply spiritual 
people of that remote and beleaguered land. It 
has heightened awareness of the strategic value 
of the SEATO collective security system. 

The great accomplishment of SEATO is that it 
has provided a shield of security behind which the 
governments of Southeast Asia can work in peace 
at the primary task of improving the well-being 
of their peoples. Without SEATO's protective 
shield the problems of development could not be 
effectively attacked. Conversely, the meaning and 
importance of the shield are largely dependent on 
the extent to which basic social and economic 
problems are being attacked throughout the 
SEATO area. 

Their solution must be given top priority in all 
the less developed countries. However, it is also 
a fact that adequate internal stability, which a 
military shield is designed to promote, is a pre- 
requisite to development. In the face of the Com- 
munist challenge we must continue to provide 
military assistance and defense support to help 
free governments maintain this shield. 

What we are doing in this field is now ap- 
proaching the absolute minimum. Military assist- 
ance, which represented 55 percent of the 1958 
program, amounts to only 45 percent of the fiscal 
year 1959 program and is less than 41 percent of 
the funds requested for fiscal year 1960. Eco- 
nomic programs have increased accordingly, ris- 
ing in this 3 -year period from 45 percent to more 
than 59 percent of the program in fiscal year 
1960. It is totally unrealistic to expect that we 
can safely divert additional military assistance to 
economic purposes. 

If our economic programs are to be further 
strengthened — and I am among the first to advo- 
cate that they be fortified — this can only be ac- 
complished by increasing the overall appropria- 
tions for mutual security. The idea that the same 
objective can safely be accomplished through sub- 
stantial further diversion of military funds is 
wishful dreaming that can be very dangerous both 
to the United States and to the less developed 
countries we wish to help. 

We must, in short, work to increase our eco- 
nomic help without weakening the security pro- 
vided by our military assistance programs. The 
governments of many less developed countries 
lack the financial resources and technical skills 
required to initiate self-sustaining economic 

growth without assistance. They do not wish to . 
be dependent upon special external aid for the 
indefinite future. They are utilizing their own 
resources. But they hope for enough help to 
enable them to move along on the road to real 
progress. To a large extent this assistance can 
best be offered in the form of loans from our De- 
velopment Loan Fund, coupled with an active 
technical assistance program. In a few cases, 
however, the requisite aid may have to be on a 
grant basis imtil the country has made enough 
economic progress to qualify for loans. 

A major conclusion from my recent visit to the 
Far East is that our foreign aid program can 
never be fully effective until we clarify our own 
thinking about it here at home. For it is a fact 
that the manner in which we extend aid is equally 
as important as the aid itself. Increasing num- 
bers of Asians are coming to question our stead- 
fastness of purpose, and even our motives, in 
granting assistance. 

The bewilderment of friendly peoples in all of 
the newly developing coimtries is understandable. 
For the facilities of modern communications 
usually outstrip their knowledge of our unique 
and highly vocal democratic process, in which 
minority and dissident opinions frequently receive 
more public attention than majority views. It is 
difficult for them to gage just how accurately a 
well-publicized demand by a group of our citizens 
that we shut off all foreign aid in 3 years and seek 
illusory refuge in a "fortress America" really re- 
flects the viewpoint of the American people as a 
whole. Even more serious is the effect of state- 
ments too often made in this country castigating 
our Asian friends as unworthy recipients of prodi- 
gious and wasteful "giveaways." 

Let us truthfully admit that the confusion of 
our friends abroad is merely a reflection of the 
confusion about foreign aid that continues to per- 
sist here at home — despite its proven effectiveness 
over the years since the close of World War 11. 
Foreign aid is being made the scapegoat for every- 
thing from the recent recession to the spread of 
international communism. Fortunately such 
opinions are held by very few of our citizens. 
But, regi-ettably, some Americans have fallen into 
the mistaken belief that the United States, in an 
attempt to "buy friends" and without adequate 
thought for its own best interests, has been busy 
giving away nearly $4 billion a year of our tax- 


Department of State Bulletin 

payers' money. Nothing, of course, could be 
farther from the truth, as all of you who have 
been so deeply concerned with the proper develop- 
ment of our foreign aid program can testify. 

President Eisenhower himself recognized the 
honest doubts of many sincere citizens when he 
asked earlier this month at Gettysburg : ^ 

Why should America, at heavy and immediate sacri- 
fice to herself, assist many other nations, particularly the 
less developed ones, in achieving greater moral, econonaic, 
and military strength? 

Then he answered, with simple eloquence : 

A free America can exist as part of a free world, and a 
free world can continue to exist only as it meets the right- 
ful demands of people for security, progress, and pros- 
perity. . . . 

This is the true meaning of mutual security. 

It is the idea that, by helping one another build a 
strong, prosperous world community, free people will not 
only win through to a just peace but can apply their won- 
derfiil, God-given talents toward creating an ever-growing 
measure of man's humanity to man. 

On the full awakening by the American people 
to the significance of the President's words may 
well depend the fate of free government in the 

Responding to Aspirations of Less Developed Nations 

To me the burning question of our generation is 
this: Can we respond adequately, and in time, to 
the legitimate and growing aspirations of vast 
sections of the world's populace to rise above their 
traditional illiteracy, poverty, and disease? 

Make no mistake about it. Our system of free 
institutions is on trial. For illiteracy, poverty, 
and disease are no longer taken for granted in the 
underdeveloped nations. If we fail them the 
aspiring peoples may seek economic progress by 
recourse to methods which are the natural enemies 
of free and democratic institutions. 

How shall we respond to this challenge? One 
answer, of course, is grant assistance through gov- 
ernmental channels, such as we contributed to the 
European recovery program. But although grant 
assistance is necessary in certain countries our ex- 
perience with the Marshall plan is not a good guide 
for our relations with the underdeveloped regions. 

In Western Europe the objective was quite spe- 
cific: to rebuild shattered and highly industrial- 
ized economies where the principal problem was a 

'IMd., Apr. 27, 1959, p. 579. 
May 78, 1959 

temporary shortage of equipment and goods. In 
the underdeveloped world, however, a great many 
things are missing : basic facilities, skilled labor, 
experienced management, teclmical education, 
strong traditions of individual initiative — all of 
these, as well as capital, are lacking. Financial 
assistance is not the only need. We must also help 
provide the framework in which economic prog- 
ress can take place at a steady and acceptable rate. 

If we expect immediate and spectacular results 
we will almost certainly be disillusioned. For this 
is a long-range task. We must, therefore, pursue 
sound and consistent policies which will demon- 
strate to the less developed nations that our way 
of life, our free institutions, can meet the challenge 
of their problems and their aspirations. 

And we must make it clear to all that we are 
prepared to stay the course ! 

Let me emphasize my last point. It is inherent 
to the American character that we are optimists 
and builders and goal-setters. We like to define a 
task, then throw our energies into its solution and, 
with the task completed according to schedule, 
move on to the next most challenging problem. In 
our haste to produce quick results we are inclined 
to become impatient with attitudes and customs 
inherent in the cultures and traditions of many of 
the newly emerging countries. We must realize 
that the task of assisting economic progress in the 
underdeveloped world is vast and complicated. 
Inevitably it will become vexing and frustrating. 
The obstacles are enormous. Indeed, it may ap- 
pear at times as if we may not succeed. Our max- 
imum efforts will be required over a long period if 
we are to really help the underdeveloped nations 
find the path to economic and social progress with- 
in a peaceful and democratic order. 

Long-Range Purpose in Extending Aid 

In view of tliis long-term commitment — and I 
am convinced that the majority of the American 
people have willingly accepted it — what is our 
long-range purpose in extending aid ? 

Economic and technical and financial assistance 
are not intended merely to further economic de- 
velopment as such. For productive capacity and 
technological skills do not of themselves bring 
about the full development of a free civilization 
in which the individual can realize his potential 
for spiritual growth. We need only recall that 
Soviet Russia, Communist China, and other bloc 


nations possess material assets in varying degrees. 

Our interest lies equally in the development of 
free political institutions, of respect for law, of 
regard for human decency. We seek to accom- 
plish this by helping the new nations to advance 
toward modern economic and political status 
while at the same time maintaining their inde- 
pendence and assuring the possibility of an evolu- 
tion which safeguards the liberty of the individ- 
ual. In this way we move closer to our national 
goal of living prosperously among nations 
friendly to us, in a world ruled by law mider 
which men can live in peace with justice. 

Throughout this 2-day conference you will be 
privileged to hear detailed and expert analyses of 
various aspects of America's participation in in- 
ternational economic growth. The list of speak- 
ers is most impressive, and I have not wanted to 
encroach upon their topics. I do, however, want 
to say a special word about the Development Loan 
Fund, which offers a very special hope for eco- 
nomic progress to the less developed countries. 

The DLF, along with the technical assistance 
program, is our primary tool in the field of de- 
velopment. It is well regarded by the less de- 
veloped countries, which prefer to borrow the 
money for their development. It places the origi- 
nal responsibility for projects on the borrower 
and insures true mutuality in the development 
process. The $700 million which has been re- 
quested for fiscal year 1960 is an absolute mini- 
mum. Next year the Department of State will 
recommend a longer term program and I hope a 
larger program. But first it is essential that we 
obtain the full amoimt of our modest request for 
the next fiscal year. 

It is fitting that you should honor former Presi- 
dent Truman tonight as you mark the 10th anni- 
versary of "point 4." This program, when it was 
announced by Mr. Truman," caught the imagina- 
tion of people around the world. For it was 
proof that the United States was responding to 
the demands of the post-World War II era with 
a proper combination of idealism and practicality. 
It is this same combination of intelligent self- 
interest and typically American concern for the 
welfare of others that pervades our present-day 
mutual security program. It is a truly nonparti- 

*For text of Mr. Truman's inaugural address of Jan. 
20, 1949, see ibid., Jan. 30, 1949, p. 123. 

san effort which deserves the fullest possible sup- 
port of all the American people through their 
representatives in the Congress. 

We in the Department of State are currently 
devoting a great deal of our time to appearing 
before congressional committees which are mak- 
ing a searching and thoroughgoing review of the 
mutual security program. This is as it should 
be, for our aid program is complex and costly. 
I personally welcome these opportunities to ex- 
plain and support our foreign aid objectives. For 
only through this examination can we clarify and 
simplify the programs so that all our people can 
have confidence that we are pursuing the right 
objectives in the right way. 

In conclusion, I should like to repeat something 
Mr. Truman said a year ago in response to criti- 
cisms of the mutual security program. He stated, 
and I quote in part : 

There are many people who say they don't like the 
foreign aid program because they believe it is adminis- 
tered badly. I don't believe that. . . . Examine it all you 
please, correct all the mistakes you can, improve it every 
year and every day, eliminate waste and increase effi- 
ciency — but don't scuttle the ship just to stop the 
leaks. . . . 

I am sure that there must be many of you here 
today who will join me in appending a hearty 
"Amen!" to this forthright statement. 

Vice President Nixon To Open 
U.S. Exhibit at Moscow 

White House (Augusta, Ga.) press release dated April 17 

The President has named Vice President Nixon 
to open the American National Exhibition at 
Moscow next summer on behalf of the American 
people. The possibility of such a visit has been 
under consideration in discussions among the 
President, Secretary Dulles, Acting Secretary of 
State Herter, U.S. Ambassador to Russia Llewel- 
lyn Thompson, and the Vice President. 

In making the announcement the President 
stated : 

I am pleased that the Vice President will be able to 
go to Moscow and represent the American people. These 
exhibitions are designed to achieve a broader under- 
standing between our two peoples — the kind of mutual 
understanding upon which our peaceful future depends. 
It is a hopeful approach. We welcome it wholeheartedly. 


Department of State Bulletin 

The tentative schedule calls for the Vice Presi- 
dent to fly to the Soviet Union to open the United 
States exhibition at Moscow's Sokolniki Park on 
July 25 and to remain in Moscow for 3 or 4 days. 

According to an agreement between the two 
countries signed last December 29,^ the United 
States and the U.S.S.E. are exchanging national 
exhibitions during the summer of 1959 devoted 
to the demonstration of the development of 
science, technology, and culture. The Soviet ex- 
hibition will be held in the New York Coliseum. 
The U.S. exhibition will be in Sokolniki Park, 

meetings ^ — to maintain the freedom of the people 
of West Berlin and the rights and obligations 
there of the Allied Powers. At the same time they 
reaffirmed their willingness to enter into negotia- 
tions with the Soviet Union with a view to estab- 
lishing a just and durable peace in Europe. 

To this end the Western Ministers reached com- 
plete agreement on the position to be presented 
at Geneva. 

The results of the meeting just concluded will 
be discussed with the North Atlantic Council and 
arrangements will be made to maintain contact 
with the Council during the Geneva conference. 

Western Foreign Ministers Agree 
on Position for Geneva Meeting 

Following is the text of a communique issued 
on April 30 hy the "Western Foreign Ministers at 
the conclusion of their meetings at Paris April 29 
and 30, together with statements made hy Secre- 
tary Herter on April 27 upon his departure for the 
m,eetings and on May 2 upon his return to Wash- 
ington, D.C. Meeting with Secretary Herter were 
Maurice Cov/ve de Murville, Foreign Minister of 
France, Heinrich von Brentano, Foreign Minister 
of the Federal Republic of Germany, and Selwyn 
Lloyd, Foreign Minister of the United Kingdom. 

Four-Power Communique of April 30 

Press release 299 dated May 1 

The Foreign Ministers of the Federal Republic 
of Germany, France, the United Kingdom and the 
United States have concluded their meetings in 
Paris to concert their position on the basis of 
which to negotiate with the Soviet Union at tlie 
fortlicoming Geneva conference. 

Their discussions were based on the report of 
the Working Group which has been meeting in 
London to examine various aspects of these prob- 

The Foreign Ministers reiterated the determina- 
tion enunciated in their meeting in December 
1958 - and reaffirmed at their recent Washington 

^ For text, see Bttlletin of Jan. 26, 1959, p. 132. 
^ For text of communique, see Bxilletin of Dec. 29, 1958, 
p. 1041. 

Secretary's Statement of April 27 

Press release 290 dated April 27 

I am leaving for Paris to meet with the Foreign 
Ministers of France, the United Kingdom, and the 
German Federal Republic in order to complete 
preparations for the May 11 Foreign Ministers 
meeting with tlie Soviet Union. My British, 
French, and German colleagues and I will be 
primarily concerned with reaching final agree- 
ment among ourselves on a common Western posi- 
tion on the outstanding questions related to the 
German problem which can be expected to arise 
during the Geneva four-power meeting. Much 
hard work has already been done, and we and our 
allies have agreed on the main lines of our ap- 
proach to the complicated problems which we will 
face at our meeting with the Soviet Foreign 
Minister [Andrei A. Gromyko]. I am fully con- 
fident that in the spirit of cooperation which pre- 
vails among all the NATO allies we shall reach 
the right result. 

Secretary's Statement of May 2 

I return from a very successful Western For- 
eign Ministers conference in Paris. 

Both in spirit and in substance we reached 
complete agreement on a highly important West- 
ern position. This should assist us greatly in 
making progress at Geneva, if the Soviet Union 
demonstrates an honest desire to negotiate. 

I shall report to the President at Gettysburg 
later this morning. 

' For background, see iUd., Apr. 20, 1959, p. 554. 

May 18, 7959 


A Review of Negotiations for Discontinuance of Nuclear Weapons Tests 

Statement hy Amhassador James J. Wadsworth ^ 

Mr. Chairman [Hubert Humphrey], I welcome 
the opportunity which this committee has given 
me to appear here and to discuss the Geneva nego- 
tiations for the discontinuance of nuclear weapons 
tests. I understand that the full records of the 
negotiations are provided to the committee staff as 
they are received by the Department of State. 
Members of this committee have served as advisers 
on the U.S. delegation from time to time, includ- 
ing yourself. That was much too short a stay 
that you gave us at this time. Perhaps next time 
you can stay longer, sir. In addition I know the 
committee has in both public and executive ses- 
sions been giving extensive consideration to the 
negotiations and to the problems of policy 

Speaking personally I have been most apprecia- 
tive of the committee's close and sympathetic in- 
terest in the work of the conference. 

Because of the extensive knowledge which mem- 
bers of this committee already have of the mat- 
ters imder discussion in Geneva, I shall summarize 
only briefly the progress and status of the nego- 
tiations. After my statement, however, I shall 
of coui-se welcome an opportunity to discuss any 
specific questions relating to the negotiations 
which members of the committee may wish to 

As you have said, Mr. Chairman, negotiations 
have been imder way since October 31st of last 

' Made before the Subcommittee on Disarmament of 
the Senate Foreign Relations Committee on Mar. 25.